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Graphic of Frank VanderSloot, appearing on Fox News.Graphic of Frank VanderSloot, appearing on Fox News. [Source: Fox News Insider]Salon’s Glenn Greenwald reports that Idaho billionaire Frank VanderSloot, the CEO of Melaleuca, Inc. and a prominent donor for the presidential campaign of Mitt Romney (R-MA), apparently objects to media reports about his financial and corporate practices, issuing threats against those who report on him and his company. VanderSloot is the national finance co-chair of the Romney campaign and a longtime Republican donor. Like Romney, he is a devout Mormon and an active member of the Church of Jesus Christ of Latter-Day Saints.
Accusations of Wrongdoing - VanderSloot and Melaleuca have donated at least $1 million to the “independent” super PAC supporting Romney, Restore Our Future (ROF—see June 23, 2011). Melaleuca, which manufactures and distributes dietary supplements and cleaning products, was described by Forbes magazine in 2004 as “a pyramid selling organization” comparable to Amway and Herbalife. Melaleuca has been sanctioned by Michigan regulatory agencies, and agreed to refrain from “engag[ing] in the marketing and promotion of an illegal pyramid” in that state. It entered into a separate agreement with the Idaho attorney general’s office after that office found that some Melaleuca executives had broken Idaho law. And the Food and Drug Administration (FDA) has accused Melaleuca of deceiving customers about its supplements.
Threats of Lawsuits - VanderSloot counters media reports of Melaleuca’s alleged wrongdoing with what Greenwald calls “chronic bullying threats to bring patently frivolous lawsuits against his political critics—magazines, journalists, and bloggers—that makes him particularly pernicious and worthy of more attention.” His threats have forced Forbes, Mother Jones, and a gay blogger in Idaho to remove material that was critical of his political and business practices, though Mother Jones reposted its article after revisions were made. Greenwald reports: “He has been using this abusive tactic in Idaho for years: suppressing legitimate political speech by threatening or even commencing lawsuits against even the most obscure critics (he has even sued local bloggers for ‘copyright infringement’ after they published a threatening letter sent by his lawyers, and demanded the public outing of some bloggers’ identities). This tactic almost always succeeds in silencing its targets, because even journalists and their employers who have done nothing wrong are afraid of the potentially ruinous costs they will incur when sued by a litigious billionaire.” Greenwald reports that VanderSloot’s tactics have had a chilling effect on Idaho journalists and bloggers, who routinely refuse to write critically about VanderSloot’s fundraising for conservative causes. And now that VanderSloot is a senior official in the Romney campaign, Greenwald writes, he is expanding his tactics beyond Idaho. “To allow this scheme to continue—whereby billionaires can use their bottomless wealth to intimidate ordinary citizens and media outlets out of writing about them—is to permit the wealthiest in America to thuggishly shield themselves from legitimate criticism and scrutiny,” he writes. “It’s almost impossible to imagine any more thuggish attempts to intimidate people from speaking out and criticizing VanderSloot,” he adds. “The effect, if not the intent, of these frivolous threats, pure and simple, is to intimidate those who cannot afford to defend themselves from criticizing the very public, politicized acts of Frank VanderSloot and his company. That’s why one no longer can even read most of the criticisms that prompted these warnings.”
Anti-Gay Activism - Greenwald writes that VanderSloot has a history of anti-gay activism, citing his funding of a billboard campaign that condemned Idaho Public Television for showing a documentary that reported on the effects of addressing lesbian and gay issues inside elementary classrooms. Though the documentary reported that working with such issues in an age-appropriate fashion was generally positive, VanderSloot accused IPT of promoting a threat to children, saying, “[I]f this isn’t stopped… little lives are going to be damaged permanently.” His wife Belinda donated $100,000 to California’s anti-gay marriage Proposition 8 campaign in 2008. And when the Idaho Falls Post Register reported on a pedophile preying on local Boy Scouts, a Mormon bishop’s alleged complicity in the matter, and the network of pedophiles that was behind the original allegations, VanderSloot attacked the newspaper and the principal reporter, Peter Zuckerman. (The six-part series won the Scripps Howard Award for Distinguished Service to the First Amendment.) VanderSloot bought full-page ads in the Post Register attacking the story and outing Zuckerman as “a homosexual,” a fact that Zuckerman had not advertised since moving to Idaho years before. VanderSloot’s ads asked if Zuckerman’s sexual orientation made him hostile to the Boy Scouts and the Mormon Church. The damage to Zuckerman’s professional and personal life was severe, including physical threats and his longtime partner being fired from his job. [Salon, 2/17/2012]
Response - VanderSloot responds in a subsequent interview with local Idaho reporter Marissa Bodnar. After the Greenwald report, MSNBC talk show host Rachel Maddow devotes a segment to VanderSloot based largely on Greenwald’s article. According to VanderSloot, Greenwald “quotes what others have wrongfully said about us and then taunts us to do something about the fact that he repeats it.” Idaho independent journalist and blogger Jody May-Chang, who has also been threatened with lawsuits by VanderSloot’s lawyers, says in response: “Mr. VanderSloot is a public political figure. They’re fair game… especially when you’re talking about behaviors and actions and things done in public light that are well known.” VanderSloot denies harboring an anti-gay agenda, saying, “I have never spoken out against gays or against gay rights,” though Bodnar notes, “[S]ome said money speaks louder than words.” VanderSloot admitted to contributing money to a group that challenged a pro-gay marriage documentary aired on Idaho public television in 1999; May-Chang says, “I’m not sure how anyone else could not characterize those as anti-gay.” For his part, VanderSloot says, “I believe that gay people should have the same freedoms and rights as any other individual.” His main objection to the Idaho Public Television program about addressing gay issues in schools, he says, was that it was being aired during prime time, “when it would attract the most children,” and the use of tax dollars to fund the program. He contends that his status as a “billionaire” is “greatly exaggerated,” and though he owns a controlling interest in Melaleuca, he is not “cash-rich.” He defends his attacks on the Idaho Falls Post Register, saying that he deplores the pedophiles who were preying on children but found the story to be “unfair” in its coverage. He was merely defending people who had been unfairly portrayed as being involved in the affair, he says, and notes that he “would use a much different approach were this to happen again.” He denies outing Zuckerman as a gay man, claiming that Zuckerman’s sexual orientation was public knowledge, and saying that contrary to Greenwald’s reporting, he defended Zuckerman in the Post Register advertisements. He denies that Melaleuca’s business model is anything like those used by Amway or Herbalife, and says Melaleuca does not employ a “pyramid scheme” to make its profits. VanderSloot says Melaleuca “will continue to use whatever legal means are available to us to defend the truth and to request corrections where false allegations have been made.” He is strongly critical of Greenwald’s article, and accuses Greenwald of deliberately repeating “the original false allegations” against him and Melaleuca. He concludes: “We can disagree on issues and argue those issues in honest and open debate. You can count on us to not smear or attack the messenger. We will defend their right to disagree. But we do ask even those who disagree with us to tell the truth about who we are and what we do. We will continue to ask that of people. That is not going to change.” [KIFI Local News 8, 3/1/2012]

Entity Tags: Idaho Public Television, Idaho Falls Post Register, Frank VanderSloot, Forbes magazine, Food and Drug Administration, Willard Mitt Romney, Restore Our Future, Rachel Maddow, Peter Zuckerman, Melaleuca, Inc., Mitt Romney presidential campaign (2012), Marissa Bodnar, Jody May-Chang, Mother Jones, Glenn Greenwald

Timeline Tags: Civil Liberties

The Republican presidential primaries are being largely controlled, at least from a financial standpoint, by a very few extraordinarily wealthy individuals, according to research provided by former Treasury Secretary Robert Reich and the news organization ProPublica. In January 2012, the campaign of frontrunner Rick Santorum (R-PA) was almost entirely funded by billionaires William Dore and multi-millionaire Foster Friess (see February 16-17, 2012), who between them supplied over three-quarters of the $2.1 million donated to Santorum’s “super PAC” “Red White and Blue Fund.” Dore is the president of a Louisiana energy corporation and Friess is a fund manager in Wyoming. Of the $11 million raised by the super PAC supporting Newt Gingrich (R-GA), $10 million came from Sheldon Adelson and his wife, Miriam. Adelson runs a casino ownership group in Las Vegas. Most of the rest of Gingrich’s funding came from Texas billionaire Harold Simmons. PayPal co-founder Peter Thiel provided $1.7 million of the $2.4 million raised in January by the super PAC for Ron Paul (R-TX). As for Mitt Romney (R-MA), himself a multi-millionaire, his super PAC “Restore Our Future” raised $6.6 million in January. Almost all of it came from 40 donors, including hedge fund billionaires Bruce Kovner, Julian Robertson (the largest donor at $1.25 million), and David Tepper, hotel owners J.W. Marriott and Richard Marriott, and Hewlett-Packard CEO Meg Whitman. The lobbying firm FreedomWorks (see 1984 and After, May 16, 2008, February 16-17, 2009, February 19, 2009 and After, February 27, 2009, March 13, 2009 and After, April 2009 and After, April 14, 2009, April 15, 2009, June 26, 2009, Late July, 2009, August 5, 2009, August 6, 2009, August 6-7, 2009, August 10, 2009, August 14, 2009, August 19, 2009, August 24, 2010, September 2010, September 12, 2010 and August 17, 2011) has contributed over $1.4 million to various Republican candidates. Reich writes, “Whoever emerges as the GOP standard-bearer will be deeply indebted to a handful of people, each of whom will expect a good return on their investment.” Reich goes on to cite American Crossroads’s “super PAC” Crossroads GPS, founded by Republican political consultant Karl Rove, and its lineup of corporate moguls contributing hundreds of millions of dollars. The lineup of Crossroads supporters includes Charles and David Koch (see 1940 and After, 1977-Present, 1979-1980, 1981-2010, 1984 and After, 1997, Late 2004, Late 2004, October 2008, August 5, 2009, November 2009, July 3-4, 2010, August 30, 2010, September 2010, August 17, 2011, April 2010 and After and October 4, 2011), and Harold Simmons, owner of Contran Corporation, who has contributed $10 million to the organization. Reich says there is no legal way to know exactly how much the Kochs and their fellows have contributed: “The public will never know who or what corporation gave what because, under IRS regulations, such nonprofit ‘social welfare organizations’ aren’t required to disclose the names of those who contributed to them.” The previous limit of $5,000 per year per individual was erased by the 2010 Supreme Court Citizens United v. Federal Election Commission decision, a decision Reich calls “grotesque.” Reich writes: “In a sense, Santorum, Gingrich, Paul, and Romney are the fronts. Dore et al. are the real investors.… Now, the limits are gone. And this comes precisely at a time when an almost unprecedented share of the nation’s income and wealth is accumulating at the top. Never before in the history of our Republic have so few spent so much to influence the votes of so many.” [The Atlantic, 2/2/2012; Salon, 2/21/2012; ProPublica, 2/21/2012] President Obama’s super PAC, “Priorities USA Action,” has received $2 million from Hollywood mogul Jeffrey Katzenberg and another $1 million from the Service Employees International Union’s Committee on Political Education (SEIU COPE). However, Priorities USA has raised relatively paltry sums in comparison to the monies raised by the Republican super PACs, according to a Reuters report. Obama and his re-election campaign had originally distanced themselves from the super PAC operating in their name, in part because they disapprove of the Citizens United decision and the influence of super PACs in electoral politics. Since the Obama campaign officially endorsed the organization, donations have risen. Obama campaign advisor David Axelrod says that Obama “believes that this is an unhealthy development in our political process, but it is a reality of the rules as they stand. This was not a quick decision, but he also feels a responsibility to win this election. There’s a lot hanging on this beyond him.” By the end of January, Priorities USA had raised $4.2 million. In contrast, Romney’s “Restore Our Future” had raised $36.8 million by the end of last month. [Reuters, 2/2012; ProPublica, 2/21/2012] Partly in response to reports of billionaires’ influence on the 2012 elections, comedian Bill Maher will announce his donation of $1 million to the Obama super PAC. Maher will tell an audience that an Obama victory over any of the Republican contenders is “worth a million dollars” and will describe the donation as “the wisest investment I think I could make.” [Los Angeles Times, 2/24/2012] Friess is often described in the press as a “billionaire,” but both Friess and Forbes magazine say that appellation is inaccurate. [Forbes, 2/8/2012]

The billionaire oil magnates and conservative political financiers Charles and David Koch (see 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) launch a court battle to take control of the libertarian Cato Institute, a Washington-based think tank. The Cato Institute began in 1974 as the Charles Koch foundation and changed its name to the Cato Institute in 1976, with the support and funding of the Koch brothers (see 1977-Present). Until last year, the institute had four primary shareholders with a controlling interest: the Koch brothers, Cato president Edward H. Crane III, and William A. Niskanen, a former Reagan administration economic advisor who died in 2011. The Kochs believe that there should be only three shareholders now, which would give them complete control of the organization, but Crane says Niskanen’s 25 percent share should go to Niskanen’s widow, Kathryn Washburn. Koch lawyer Wes Edward says the dispute is about nothing but shareholder rights. Cato has 120 full-time staffers and around 100 visiting or adjunct scholars. Its annual operating budget is $23 million. [Politico, 3/1/2012]

Entity Tags: David Koch, Charles Koch, William A. Niskanen, Kathryn Washburn, Cato Institute, Edward H. Crane III, Wes Edward

Timeline Tags: Domestic Propaganda

Conservative talk show host Rush Limbaugh spends much of his three-hour show lambasting Georgetown University law student Sandra Fluke, who testified in opposition to a House amendment that would have allowed health care providers to deny contraceptive coverage and other health care necessities if they had religious or moral objections (see March 1, 2012). The day before, Limbaugh called Fluke a “slut” and a “prostitute” who is having “so much sex she can’t afford the contraception” and wants the government to pay for it (see February 29, 2012). Limbaugh begins by saying that Fluke and others who criticized his comments (see February 29, 2012 and March 1, 2012) were having “a conniption fit” that he finds “hilarious.” He offers a compromise, offering to buy “all the women at Georgetown University as much aspirin to put between their knees as possible” (see February 16-17, 2012), and says he believes he is being “quite compassionate.” Limbaugh later returns to the topic, saying that having the government pay for contraception is “flat-out thievery” that would force taxpayers to pay to “satisfy the sexual habits of female law students at Georgetown.” He characterizes Fluke’s objections to the House amendment as her saying: “I’m going broke having sex. I need government to provide me condoms and contraception. It’s not fair.… Ms. Fluke, have you ever heard of not having sex? Have you ever heard of not having sex so often?… Who bought your condoms in junior high? Who bought your condoms in the sixth grade? Or your contraception. Who bought your contraceptive pills in high school?” He says Fluke is apparently “having so much sex, it’s amazing she can still walk.… She and her co-ed classmates are having sex nearly three times a day for three years straight, apparently these deadbeat boyfriends or random hookups that these babes are encountering here, having sex with nearly three times a day.” He advises Fluke that she can get “free condoms and lube” from the Washington, DC, Department of Health. He then says: “So, Ms. Fluke and the rest of you feminazis (see May 21, 2007 and July 2008), here’s the deal. If we are going to pay for your contraceptives, and thus pay for you to have sex, we want something for it, and I’ll tell you what it is. We want you to post the videos online so we can all watch.” He finishes his tirade by accusing Fluke of being “a plant… an anti-Catholic plant from the get-go” who is working behind the scenes as part of a “Democratic plot” to “create a new welfare program and, at the same time, try to cast Republicans in an election year as anti-female.” Fluke, he says, is “a woman who is happily presenting herself as an immoral, baseless, no-purpose-to-her life woman. She wants all the sex in the world whenever she wants it, all the time, no consequences. No responsibility for her behavior.” He concludes that he, not Fluke, is the victim, and says he is being persecuted by those who wish to see him removed from the airwaves. [Think Progress, 3/1/2012; Media Matters, 3/1/2012; MSNBC, 3/2/2012]

Entity Tags: Rush Limbaugh, Sandra Fluke, Georgetown University

Timeline Tags: Domestic Propaganda

For the third straight day, conservative talk show host Rush Limbaugh spends the majority of his show attacking Georgetown University law student Sandra Fluke, who testified in opposition to a House amendment that would have allowed health care providers to deny contraceptive coverage and other health care necessities if they had religious or moral objections (see March 1, 2012). On Wednesday, February 29, Limbaugh called Fluke a “slut” and a “prostitute” who is having “so much sex she can’t afford the contraception” and wants the government to pay for it (see February 29, 2012); on Thursday, Limbaugh continued to smear Fluke’s character and demanded that if she wanted the government to pay her to have sex, then he wanted her to post videos of her having sex online so the public could watch (see March 1, 2012). Today, Limbaugh defends his earlier comments, saying: “This woman comes forth with this frankly hilarious claim that she’s having so much sex, and her buddies with her, that she can’t afford it. And not one person says, ‘Did you ever think about maybe backing off the amount of sex that you have?’” He goes on to say that asking health insurers to cover contraception is “no different than if somebody knocked on my door that I don’t know and said: ‘You know what? I’m out of money. I can’t afford birth-control pills, and I’m supposed to have sex with three guys tonight.’” Limbaugh calls criticism of his call for Fluke to post sex videos online “absurd,” saying his critics should “realize that we’re illustrating absurdity here by being absurd” and that people should “lighten up.” Limbaugh initially refuses to comment on Fluke receiving a telephone call of support from President Obama (see March 2, 2012), saying, “I’m gonna button my lip on that one.” However, in response to Obama’s remark that Fluke’s parents should be proud of her, Limbaugh says that if his daughter had testified that “she’s having so much sex she can’t pay for it and wants a new welfare program to pay for it,” he’d be “embarrassed” and “disconnect the phone,” “go into hiding,” and “hope the media didn’t find me.” He also says, apparently sarcastically: “Oh that’s touching, Obama just called Sandra Fluke to make sure she’s all right. That is so compassionate, what a great guy.” Limbaugh denies he hates women, and defines “misogynist” as “a man who hates women almost as much as women hate women.” He observes that Fluke is having so much sex that her boyfriends are “lined up around the block. They would have been in my day.… [Fluke’s] sex life is active. She’s having sex so frequently that she can’t afford all the birth-control pills that she needs. That’s what she’s saying.” As with his remarks yesterday, he concludes that he, not Fluke, is the victim in this controversy, saying: “And amazingly, when there is the slightest bit of opposition to this new welfare entitlement to be created, that all of a sudden, we hate women, we want them barefoot and pregnant in the kitchen, all of these other things. And so, that’s where we are. And so, at the end of this week, I am this person that the women of America are to fear the most.” [Media Matters, 3/1/2012; CBS News, 3/2/2012; Think Progress, 3/2/2012] Liberal blogger David Atkins writes after Limbaugh’s broadcast that judging from his remarks, Limbaugh thinks female birth control pills work like Viagra—the more sex one wishes to have, the more pills one must take. “Anyone remotely familiar with oral contraceptives knows that to work properly, women have to take one pill a day over the course of their monthly cycle. It doesn’t matter if you have unprotected sex once a month or 300 times a month. It’s still the same number of pills, and therefore the same cost. How much sex someone has is utterly irrelevant to the cost of contraception unless they choose to abstain for the entire month.” Atkins writes that Limbaugh is combining ignorance and misogyny in his attacks on Fluke. If indeed Limbaugh does think that female birth control works like Viagra, Atkins writes, “Rush assumes that since it costs him money every time he has sex, it must cost a female college student money, too.” [David Atkins, 3/2/2012]

Entity Tags: Rush Limbaugh, Sandra Fluke, Barack Obama, David O. Atkins

Timeline Tags: Domestic Propaganda

Conservative radio show host Rush Limbaugh issues an apology for his three-day verbal assault on Georgetown University law student Sandra Fluke. Fluke testified in opposition to a House amendment that would have allowed health care providers to deny contraceptive coverage and other health care necessities if they had religious or moral objections (see March 1, 2012) and was vilified by Limbaugh (see February 29, 2012, March 1, 2012, and March 2, 2012). Limbaugh, echoing claims from his anti-Fluke broadcasts, claims he was merely joking in calling Fluke a “slut” and a “prostitute,” alleging that she wanted the government to pay for her having promiscuous sex, and demanding that she post online videos of the sex he claimed he would be paying for. On his blog, Limbaugh writes: “For over 20 years, I have illustrated the absurd with absurdity, three hours a day, five days a week. In this instance, I chose the wrong words in my analogy of the situation. I did not mean a personal attack on Ms. Fluke. I think it is absolutely absurd that during these very serious political times, we are discussing personal sexual recreational activities before members of Congress. I personally do not agree that American citizens should pay for these social activities. What happened to personal responsibility and accountability? Where do we draw the line? If this is accepted as the norm, what will follow? Will we be debating if taxpayers should pay for new sneakers for all students that are interested in running to keep fit? In my monologue, I posited that it is not our business whatsoever to know what is going on in anyone’s bedroom nor do I think it is a topic that should reach a presidential level (see March 2, 2012). My choice of words was not the best, and in the attempt to be humorous, I created a national stir. I sincerely apologize to Ms. Fluke for the insulting word choices.” [Rush Limbaugh, 3/3/2012] Premiere Radio Networks, the subsidiary of Clear Channel Entertainment that distributes Limbaugh’s show, quickly emails the apology to reporters, but initially declines to comment. Limbaugh’s chief of staff Kit Carson refuses to comment as well. On March 4, the network will email a statement by a spokesperson that reads: “The contraception debate is one that sparks strong emotion and opinions on both sides of the issue. We respect the right of Mr. Limbaugh, as well as the rights of those who disagree with him, to express those opinions.” The company refuses to divulge the names of the largest advertisers on Limbaugh’s show, nor how much revenue Premiere is losing by the advertiser defections. A Twitter account called “Stop Rush” posts: “I think this attempt at damage control labeled as an apology actually makes things worse. You know what Rush’s so-called apology means? Your efforts at delivering real accountability are working!” MSNBC talk show host Lawrence O’Donnell posts on Twitter, “Lawyers wrote that apology.” [New York Times, 3/3/2012; Associated Press, 3/4/2012] Think Progress reporter Alex Seitz-Wald notes that Limbaugh conflates contraception with governmental purchases of sneakers, and continues to imply that Fluke and other women advocate for contraception coverage solely for their own personal sexual activities. Seitz-Wald recalls that Fluke testified to Congress on behalf of a friend who needed birth control pills to manage polycystic ovarian syndrome. [Think Progress, 3/3/2012] Liberal blogger Kaili Jo Gray writes in response: “Shorter Rush: ‘I’m sorry if any sluts were offended by being called sluts, but if they’d stop being sluts, I wouldn’t have to call them sluts.’ Obviously, the campaign to demand that Rush’s sponsors pull their advertising from his show is working” (see March 2, 2012 and After). [Kaili Jo Gray, 3/3/2012] Others agree. Representative Debbie Wasserman Schultz (D-FL), the Democratic National Committee chair, says, “I know he apologized, but forgive me, I doubt his sincerity, given that he lost at least six advertisers.” And Eric Boehlert of the progressive media watchdog Web site Media Matters says he doubts the apology will “stop the pressure that’s being applied to his advertisers.” In an email, Boehlert says, “His comments were so egregious, naturally advertisers will have doubts about being associated with Limbaugh’s brand of hate.” [New York Times, 3/5/2012] It is possible that Limbaugh issues the apology in hopes of fending off a lawsuit by Fluke (see March 2, 2012) and/or to stop advertisers from removing themselves as sponsors of his show. Regardless, the exodus will intensify, and will spread to advertisers asking that their ads be removed from Limbaugh’s political talk-show colleagues as well as from his own show (see March 9, 2012).

Entity Tags: Clear Channel, Lawrence O’Donnell, Debbie Wasserman Schultz, Eric Boehlert, Kit Carson, Alex Seitz-Wald, Sandra Fluke, Kaili Jo Gray, Premiere Radio Networks, Rush Limbaugh

Timeline Tags: Domestic Propaganda

Premiere Radio Networks logo.Premiere Radio Networks logo. [Source: Premiere Radio Networks]Premiere Radio Networks, the company that distributes radio shows by an array of right-wing hosts, including Rush Limbaugh, announces that 98 out of 350 advertisers, including a number of major corporations, have requested that their ads only appear on “programs free of content that you know are deemed to be offensive or controversial (for example, Mark Levin, Rush Limbaugh, Tom Leykis, Michael Savage, Glenn Beck, Sean Hannity).” The Premiere email says, “Those are defined as environments likely to stir negative sentiment from a very small percentage of the listening public.” Limbaugh vilified law student Sandra Fluke for three days on his radio show (see February 29, 2012, March 1, 2012, and March 2, 2012), and though he issued an apology on his Web site (see March 3, 2012), advertisers have dropped their sponsorship of his show in increasingly large numbers (see March 2, 2012 and After) following a widespread outcry of anger against Limbaugh’s rhetoric. Now, large advertisers such as Ford, General Motors, Toyota, Allstate, Geico, Prudential, State Farm, McDonald’s, and Subway Restaurants have asked that their advertising be removed from Premiere’s right-wing talk shows. Industry insider Valerie Geller tells a reporter: “I have talked with several reps who report that they’re having conversations with their clients, who are asking not to be associated with specifically polarizing controversial hosts, particularly if those hosts are ‘mean-spirited.’ While most products and services offered on these shows have strong competitors, and enjoy purchasing the exposure that many of these shows and hosts can offer, they do not wish to be ‘tarred’ with the brush of anger, or endure customer anger, or, worse, product boycotts.” For nearly two decades, Limbaugh has been at the forefront of the movement that insisted conservative talk shows on radio and television must counterbalance what he and others have termed the “liberal bias” of the mainstream media (see Summer 1970, October 7, 1996, October 9, 2002, October 8, 2003, December 2004, December 14, 2005, December 19-20, 2005, December 21, 2005, May 2008, October 23-24, 2008, February 24, 2009, and August 11, 2009). After cable television and Internet access fragmented the market, “niche” audiences such as Limbaugh’s have provided the most reliable listenership and viewers, and the highest comparative ratings. However, the demographics are changing for right-wing talk. Limbaugh, Levin, Savage, Hannity, and others generally rate best among aging white males, a demographic that is less profitable than it used to be. Now, the prize advertising demographic is women aged 24 to 55, a demographic that has been leaving the right-wing talkers in steadily increasing numbers, and now makes up the forefront of the angry pushback against Limbaugh over his public savaging of a young female law student over a political disagreement. Some, including Limbaugh’s brother, right-wing talk show host David Limbaugh, have complained of a “left-wing jihad” against conservative radio hosts. However, as reporter John Avlon writes: “[T]he irony is that the same market forces that right-wing talk-radio hosts champion are helping to seal their fate. Advertisers are abandoning the shows because they no longer want to be associated with the hyperpartisan—and occasionally hateful—rhetoric. They are finally drawing a line because consumers are starting to take a stand.” Moreover, the advent of social media has made the response time for protesters and angry consumers almost immediate. Geller says: “In the past, a letter, petition, or phone campaign took a few days to put together and longer to execute. But now customers [listeners] can instantly rally using Facebook, Twitter, and instant messaging to make their displeasure with a client, product, or service known immediately. These movements can happen fast.” Avlon concludes: “When big money starts shifting, it is a sign of a deeper tide that is difficult to undo, even if you are an industry icon like Rush Limbaugh. It is a sign that the times are changing. Let’s hope that what emerges is an evolution of the industry, away from stupid, predictable, and sometimes hateful hyperpartisanship and toward something a little smarter and more civil.” [Radio-Info.com, 3/9/2012; Daily Beast, 3/10/2012]

Entity Tags: Mark Levin, Valerie Geller, General Motors, Geico, Ford Motor Company, Allstate, John Avlon, Tom Leykis, Toyota Motor Corporation, State Farm, Premiere Radio Networks, Michael Savage, McDonald’s, Prudential, Subway Restaurants, Glenn Beck, Sandra Fluke, Sean Hannity, Rush Limbaugh

Timeline Tags: Domestic Propaganda

Kenneth Griffin.Kenneth Griffin. [Source: Start a Hedge Fund (.com)]Billionaire hedge fund investor Kenneth Griffin tells a Chicago reporter that he does not believe the extraordinarily wealthy wield enough political influence in America, and says that they must step up to stop America’s “drift” towards Soviet-style “socialism.” Griffin, alone and in conjunction with his wife Anne, has given $150,000 to Restore Our Future, the super PAC that supports Mitt Romney (see June 23, 2011). He has also given over $560,000 to the Republican Governors Association and $300,000 to American Crossroads, the advocacy organization founded by Republican strategists Ed Gillespie and Karl Rove. The Griffins have been heavy Republican donors in previous election cycles, and have given around $1.5 million to Americans for Prosperity (AFP—see Late 2004), the “astroturf” lobbying and advocacy organization founded and sponsored by the billionaire oil magnates Charles and David Koch. Of his contributions to AFP, he explains: “Charles and David Koch are huge advocates for free markets (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011). I have a tremendous respect for their intellectual and financial commitment to embracing a set of economic policies that will give us global competitiveness.… I share their fundamental belief that economic freedom is core to the ethos of our country. It’s the idea that any person can pursue their dreams, whether it’s starting a business or who they choose to work for.” Asked, “Do you think the ultrawealthy have an inordinate or inappropriate amount of influence on the political process?” Griffith replies: “I think they actually have an insufficient influence. Those who have enjoyed the benefits of our system more than ever now owe a duty to protect the system that has created the greatest nation on this planet. And so I hope that other individuals who have really enjoyed growing up in a country that believes in life, liberty, and the pursuit of happiness—and economic freedom is part of the pursuit of happiness—[I hope they realize] they have a duty now to step up and protect that.… At this moment in time, these values are under attack. This belief that a larger government is what creates prosperity, that a larger government is what creates good [is wrong]. We’ve seen that experiment. The Soviet Union collapsed. China has run away from its state-controlled system over the last 20 years and has pulled more people up from poverty by doing so than we’ve ever seen in the history of humanity. Why the US is drifting toward a direction that has been the failed of experiment of the last century, I don’t understand. I don’t understand.” Asked if he believes he should continue to be allowed to make unlimited donations on behalf of candidates (see January 21, 2010), he answers: “In my opinion, absolutely. Absolutely. The rules that encourage transparency around that are really important.… My public policy hat says transparency is valuable. On the flip side, this is a very sad moment in my lifetime. This is the first time class warfare has really been embraced as a political tool. Because we are looking at an administration that has embraced class warfare as being politically expedient, I do worry about the publicity that comes with being willing to both with my dollars and, more importantly, with my voice to stand for what I believe in (see July 20, 2011).… I live in financial services, and every bank in the United States is really under the thumb of the government in a way it’s never been before. And that’s really worrisome to me, as someone who’s willing to say, ‘Wait, we need to step back and try to push government outside the realm of every dimension of our lives.’” [Think Progress, 3/10/2012; Chicago Tribune, 3/11/2012]

Entity Tags: David Koch, American Crossroads, Americans for Prosperity, Charles Koch, Republican Governors Association, Willard Mitt Romney, Kenneth Griffin, Anne Griffin, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Senator John McCain (R-AZ), the co-author of the 2002 Bipartisan Campaign Reform Act (BCRA—see March 27, 2002), criticizes the Supreme Court’s 2010 Citizens United ruling that gutted the BCRA and allows corporations and labor unions to make unlimited contributions to election and campaign activities (see January 21, 2010). In a panel discussion, McCain calls the ruling “a combination of arrogance, naivete, and stupidity, the likes of which I have never seen.” He goes on to predict scandals as a result of the ruling enabling unlimited corporate contributions and a lack of disclosure surrounding those contributions (see October 2010, June 23, 2011, October 30, 2011, and December 19, 2011), saying: “I promise you this. I promise you there will be huge scandals… because there’s too much money washing around, too much of it… we don’t know who, who contributed it, and there is too much corruption associated with that kind of money. There will be major scandals.” Asked if he intends to give up on passing campaign reform legislation, he answers: “No. But I’ve got to wait until we think that can pass legislation. And I’m not sure right now, frankly, that we could get it passed.” The next day, Josh Israel of the liberal news Web site Think Progress notes that McCain is somewhat responsible for the inability of Congress to pass meaningful campaign finance legislation. He refused to vote for the Democratically-sponsored DISCLOSE Act (see July 26-27, 2010), decrying it as “a bailout for the unions.” Had McCain voted with Senate Democrats to end the Senate Republican filibuster against the DISCLOSE Act, the bill could have been brought to the floor for an up or down vote. Israel calls McCain’s “grumbling” about campaign finance regulation “little more than grandstanding.” [Think Progress, 3/28/2012]

Entity Tags: DISCLOSE Act of 2010, Bipartisan Campaign Reform Act of 2002, US Supreme Court, John McCain, Josh Israel

Timeline Tags: Civil Liberties

American Energy Alliance logo.American Energy Alliance logo. [Source: NJI Media]The press learns that a recent $3.6 million television ad campaign attacking President Obama on gasoline prices was funded by the oil billionaires Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011 and February 14, 2011). The ad campaign was launched by the American Energy Alliance (AEA), the political arm of the Institute for Energy Research. Both organizations are heavily funded by the Koch brothers and their donor network, though information about their finances is sketchy, as the groups do not have to disclose their donor rolls to the public. The two groups are run by Tom Pyle, a former lobbyist for Koch Industries. Pyle regularly attends what news Web site Politico calls “the mega-donor summits organized by the Koch brothers.” Koch-funded organizations intend to spend well over $200 million on behalf of conservative groups before the November elections. The AEA ad claims that the Obama administration is responsible for the recent surge in gasoline prices. Democratic National Committee (DNC) spokesman Brad Woodhouse says that the Koch brothers are “funding yet another shadowy outside group to defend the interests of Big Oil and protect their own tax breaks and profits with [Republican presumptive presidential nominee] Mitt Romney being the ultimate beneficiary.” The DNC and the Obama campaign have targeted the Koch brothers in previous statements, calling them some of the “secretive oil billionaires” funding the Romney campaign. AEA spokesman Benjamin Cole accuses the DNC and the Obama campaign of playing “shadowy” politics intended “to delay, deny, and deceive the American public about the president’s record on energy prices.” The AEA ad is not connected to the Romney campaign, Cole says, and adds that the ad campaign is not intended to benefit Romney, stating, “[W]e have been public and unashamed of criticizing Mitt Romney or any candidate for office, Republican or Democrat, that doesn’t support free market energy solutions.” Cole refuses to confirm that the Koch brothers are financing the ad campaign, instead saying: “People ask if Koch is behind this ad. There is only one person behind this ad and it is President Barack Obama.” The Koch brothers are becoming increasingly involved in the 2012 presidential campaign, sending representatives like Marc Short to network with former Bush advisor Karl Rove, who runs the super PAC American Crossroads and its sibling Crossroads GPS. [Politico, 3/29/2012]

Entity Tags: Karl C. Rove, Barack Obama, American Energy Alliance, Benjamin Cole, Brad Woodhouse, Obama administration, Charles Koch, David Koch, Thomas Pyle, Willard Mitt Romney, Marc Short

Timeline Tags: Civil Liberties, 2012 Elections

USA Today, using data provided by the Federal Election Commission (FEC), reports that much of the unprecedentedly high political contributions in the 2012 presidential campaigns comes from anonymous donors. The report also shows that eight out of the top 10 donors give to Republican and/or conservative super PACs. The pattern is similar to that described in earlier reports, such as an August 2011 report that found a dozen wealthy donors made up the majority of super PAC donations, and most of those donors contributed to Republican or conservative organizations (see August 4, 2011), and a February 2012 analysis that found a quarter of the donations flowing into the super PACs came from just five wealthy donors, four of whom are Republican contributors (see February 21, 2012). The latest data shows that eight out of 10 of the top super PAC donors are either individuals or corporations who donate to Republican causes. One of the remaining two donors, the Cooperative of American Physicians, supports a single Democratic candidate and a range of Republicans. The other is a teachers’ union, the National Education Association. The top three donors—casino billionaire Sheldon Adelson and his wife Miriam, Dallas industrialist Harold Simmons and his wife Annette, and Houston real-estate mogul Bob Perry—have between them contributed over $45 million, more than four times the donations coming from the “bottom” six donors. Much of the money collected by nonprofit political advocacy organizations remains undocumented; for example, 80 percent of the donations collected by the Republican-aligned American Crossroads super PAC and its 501(c)4 sister organization Crossroads GPS is from anonymous donors (see April 13-20, 2012). The groups plan on spending at least $300 million during the campaign. FreedomWorks for America, the super PAC arm of the “astroturf” lobbying organization FreedomWorks (see April 14, 2009), garnered about a third of its contributions from anonymous donors who gave to the organization’s nonprofit arm. Law professor and campaign finance expert Richard Hasen says, “We have a dysfunctional system for financing our elections,” when anonymous donations can fund political activity. “It’s bad for our democracy when people refuse to be held accountable.” Russ Walker, the national political director of FreedomWorks for America, says simply, “Everything we are doing is within the law.” [USA Today, 4/22/2012; Think Progress, 4/23/2012]

Entity Tags: Cooperative of American Physicians, USA Today, American Crossroads GPS, American Crossroads, Bobby Jack Perry, Russ Walker, Sheldon Adelson, National Education Association, FreedomWorks for America, FreedomWorks, Federal Election Commission, Richard L. Hasen, Miriam Adelson, Annette Simmons, Harold Simmons

Timeline Tags: Civil Liberties, 2012 Elections

Investigative journalist Robert Parry speaks at a conference in Heidelberg, Germany concerning the progression of journalism from the 1970s to the present. Parry tells the gathering that American investigative journalism may have hit something of a zenith in the 1970s, with the media exposure of the Pentagon Papers (see March 1971) and the Watergate scandal (see August 8, 1974). “That was a time when US journalism perhaps was at its best, far from perfect, but doing what the Founders had in mind when they afforded special protections to the American press,” he says. “In the 1970s, besides the Pentagon Papers and Watergate, there were other important press disclosures, like the My Lai massacre story and the CIA abuses—from Iran to Guatemala, from Cuba to Chile. For people around the world, American journalism was the gold standard. Granted, that was never the full picture. There were shortcomings even in the 1970s. You also could argue that the US news media’s performance then was exceptional mostly in contrast to its failures during the Cold War, when reporters tended to be stenographers to power, going along to get along, including early in the Vietnam War.” However, those days are long past, Parry notes, and in recent years, American journalism has, he says, gone “terribly wrong.” Parry says that the American press was subjected to an orchestrated program of propaganda and manipulation on a par with what the CIA did in many foreign countries: “Think how the CIA would target a country with the goal of shoring up a wealthy oligarchy. The agency might begin by taking over influential media outlets or starting its own. It would identify useful friends and isolate troublesome enemies. It would organize pro-oligarchy political groups. It would finance agit-prop specialists skilled at undermining and discrediting perceived enemies. If the project were successful, you would expect the oligarchy to consolidate its power, to get laws written in its favor. And eventually the winners would take a larger share of the nation’s wealth. And what we saw in the late 1970s and early 1980s in the United States was something like the behavior of an embattled oligarchy. Nixon’s embittered allies and the Right behaved as if they were following a CIA script. They built fronts; they took over and opened new media outlets; they spread propaganda; they discredited people who got in the way; ultimately, they consolidated power; they changed laws in their favor; and—over the course of several decades—they made themselves even richer, indeed a lot richer, and that, in turn, has translated into even more power.”
Building a Base - Right-wing billionaires such as the Koch brothers (see 1979-1980) and Richard Mellon Scaife, along with Nixon-era figures such as former Treasury Secretary William Simon (a Wall Street investment banker who ran the right-wing Olin Foundation) worked to organize conservative foundations; their money went into funding what Parry calls “right-wing media… right-wing think tanks… [and] right-wing attack groups. Some of these attack groups were set up to go after troublesome reporters.” Parry finds it ironic, in light of the CIA’s interference in the affairs of other nations, that two foreign media moguls, Sun Myung Moon and Rupert Murdoch, were key figures in building and financing this conservative media construct. Some media outlets, such as Fox News (see Summer 1970 and October 7, 1996), were created from scratch, while others, such as the venerable and formerly liberal New Republic, were bought out and taken over by conservatives. When Ronald Reagan ascended to the White House, Parry says, he brought along with him “a gifted team of [public relations] and ad men.” Vice President George H.W. Bush, a former CIA director, enabled access to that agency’s propaganda professionals. And Reagan named William Casey to head the CIA; Casey, a former Nixon administration official, was “obsessed [with] the importance of deception and propaganda,” Parry says. “Casey understood that he who controlled the flow of information had a decisive advantage in any conflict.”
Two-Pronged Attack - Two key sources of information for Washington media insiders were targeted, Parry says: the “fiercely independent” CIA analytical division, whose analyses had so often proven damaging to White House plans when reported, and the “unruly” Washington press corps. Casey targeted the CIA analysts, placing his young assistant, Robert Gates, in charge of the analytical division; Gates’s reorganization drove many troublesome analysts into early retirement, to be replaced with more malleable analysts who would echo the White House’s hard line against “Soviet expansionism.” Another Casey crony, Walter Raymond Jr., worked to corral the Washington press corps from his position on the National Security Council. Raymond headed an interagency task force that ostensibly spread “good news” about American policies in the foreign press, but in reality worked to smear and besmirch American journalists who the White House found troubling. According to Parry, “Secret government documents that later emerged in the Iran-Contra scandal revealed that Raymond’s team worked aggressively and systematically to lobby news executives and turn them against their reporters when the reporters dug up information that clashed with Reagan’s propaganda, especially in hot spots like Central America.” It was easy to discredit female journalists in Central America, Parry says; Raymond’s team would spread rumors that they were secretly having sexual liaisons with Communist officials. Other reporters were dismissed as “liberals,” a label that many news executives were eager to avoid. Working through the news executives was remarkably successful, Parry says, and it was not long before many Washington reporters were either brought to heel or marginalized.
'Perception Management' - Reagan’s team called its domestic propaganda scheme “perception management.” Parry says: “The idea was that if you could manage how the American people perceived events abroad, you could not only insure their continued support of the foreign policy, but in making the people more compliant domestically. A frightened population is much easier to control. Thus, if you could manage the information flows inside the government and inside the Washington press corps, you could be more confident that there would be no more Vietnam-style protests. No more Pentagon Papers. No more My Lai massacre disclosures. No more Watergates.” The New York Times and Washington Post, the newspapers that had led the surge of investigative reporting in the 1970s, were effectively muzzled during the Reagan era; Parry says that the two papers “became more solicitous to the Establishment than they were committed to the quality journalism that had contributed to the upheavals of the 1960s and 1970s.” The same happened at the Associated Press (AP), where Parry had attempted, with limited success, to dig into the Reagan administration’s Central American policies, policies that would eventually crystallize into the Iran-Contra scandal (see May 5, 1987). Few newspapers followed the lead of AP reporters such as Parry and Brian Barger until late 1986, when the Hasenfus air crash provided a news story that editors could no longer ignore (see October 5, 1986). But, Parry says, by the time of the Iran-Contra hearings, few news providers, including the Associated Press, had the stomach for another scandal that might result in another impeachment, particularly in light of the relentless pressure coming from the Reagan administration and its proxies. By June 1990, Parry says he understood “the concept of ‘perception management’ had carried the day in Washington, with remarkably little resistance from the Washington press corps.… Washington journalists had reverted to their pre-Vietnam, pre-Watergate inability to penetrate important government secrets in a significant way.” The process accelerated after 9/11, Parry says: “[M]any journalists reverted back their earlier roles as stenographers to power. They also became cheerleaders for a misguided war in Iraq. Indeed, you can track the arc of modern American journalism from its apex at the Pentagon Papers and Watergate curving downward to that center point of Iran-Contra before reaching the nadir of Bush’s war in Iraq. Journalists found it hard even to challenge Bush when he was telling obvious lies. For instance, in June 2003, as the search for WMD came up empty, Bush began to tell reporters that he had no choice but to invade because Saddam Hussein had refused to let UN inspectors in. Though everyone knew that Hussein had let the inspectors in and that it was Bush who had forced them to leave in March 2003, not a single reporter confronted Bush on this lie, which he repeated again and again right through his exit interviews in 2008” (see November 2002-March 2003, November 25, 2002, December 2, 2002, December 5, 2002, January 9, 2003, March 7, 2003, and March 17, 2003).
The Wikileaks Era and the 'Fawning Corporate Media' - Parry says that now, the tough-minded independent media has been all but supplanted by what former CIA analyst Ray McGovern calls the “Fawning Corporate Media.” This has increased public distrust of the media, which has led to people seeking alternative investigative and reporting methods. Parry comments that much of the real investigative journalism happening now is the product of non-professionals working outside the traditional media structure, such as Wikileaks (see February 15, 2007, 2008, and April 18, 2009). However, the independent media have not demonstrated they can reach the level of influence of institutions like the Washington Post and the New York Times. “[I]f we were assessing how well the post-Watergate CIA-style covert operation worked,” Parry says, “we’d have to conclude that it was remarkably successful. Even after George W. Bush took the United States to war in Iraq under false pretenses and even after he authorized the torture of detainees in the ‘war on terror,’ no one involved in those decisions has faced any accountability at all. When high-flying Wall Street bankers brought the world’s economy to its knees with risky gambles in 2008, Western governments used trillions of dollars in public moneys to bail the bankers out. But not one senior banker faced prosecution.… Another measure of how the post-Watergate counteroffensive succeeded would be to note how very well America’s oligarchy had done financially in the past few decades. Not only has political power been concentrated in their hands, but the country’s wealth, too.… So, a sad but—I think—fair conclusion would be that at least for the time being, perception management has won out over truth. But the struggle over information and democracy has entered another new and unpredictable phase.” [Consortium News, 5/15/2012]

Entity Tags: Fox News, David Koch, Washington Post, William Casey, William Simon, Central Intelligence Agency, Associated Press, The New Republic, Sun Myung Moon, Walter Raymond, Jr, Ronald Reagan, New York Times, George W. Bush, George Herbert Walker Bush, Rupert Murdoch, Robert Parry, Ray McGovern, Robert M. Gates, Olin Foundation, Charles Koch, Richard Mellon Scaife

Timeline Tags: Domestic Propaganda

The press reports that Harold Hamm, the billionaire CEO of oil firm Continental Resources, gave $985,000 to the “independent” super PAC supporting the presidential campaign of Mitt Romney, Restore Our Future (ROF—see June 23, 2011), three days after he became a Romney campaign advisor. The information comes from financial disclosure forms filed today with the Federal Election Commission (FEC). Hamm gave the Romney campaign the maximum allowed donation of $2,500 in October 2011. He has also contributed $61,600 to the Republican National Committee (RNC). On April 1, 2012, Hamm became the Romney campaign’s top advisor, and made the huge donation to ROF on April 3. NBC reporter Michael Isikoff writes that Hamm’s donation “is a new example of how big super PAC donors can make their policy views heard by the campaigns they are supporting.” Hamm’s contribution was the second largest donation garnered by ROF during April. Hamm’s company is the largest leaseholder of the Bakken, the large shale formation in North Dakota; as a result, Hamm is a strong proponent of the proposed Keystone XL pipeline project and a vocal critic of the Obama administration’s energy policies, particularly the administration’s decision to postpone the Keystone project and its efforts to curb tax breaks for oil exploration. Hamm chairs the Romney campaign’s “Energy Policy Advisory Group,” tasked with creating a new “pro-jobs, pro-market, pro-American” energy agenda, as the campaign has described it. The day Hamm was announced as the advisor for the Romney campaign, he said he was backing Romney in part because he was “acutely aware” of “how outrageously [Obama] has attacked energy producers in particular.” Isikoff writes that Hamm’s donations to ROF “could potentially raise questions about the connections between his donations and his role in shaping campaign policies that might benefit his company.” Neither Romney’s campaign nor Continental Resources will reveal the names of the other members of the Energy Policy Advisory Group, or answer questions about Hamm’s role in the campaign. [MSNBC, 5/21/2012] Two days after the filing, Rebecca Leber of the liberal news Web site Think Progress will write, “Campaigns and super PACs are not legally allowed to coordinate, but in reality many of Romney’s donors have turned to super PACs to escape contribution ceilings” (see January 31, 2012). [Think Progress, 5/23/2012]

Entity Tags: Mitt Romney presidential campaign (2012), Energy Policy Advisory Group, Continental Resources, Federal Election Commission, Michael Isikoff, Republican National Committee, Harold Hamm, Rebecca Leber, Restore Our Future, Obama administration

Timeline Tags: Civil Liberties, 2012 Elections

Politico reports that Republican super PACs and other outside groups are coordinating under the leadership of what it calls “a loose network of prominent conservatives, including former Bush political advisor Karl Rove, the oil billionaire Koch brothers, and Tom Donohue of the US Chamber of Commerce,” to spend an unprecedented $1 billion between now and November to help Republicans win control of the White House and Congress. The plans include what Politico calls “previously undisclosed plans for newly aggressive spending by the Koch brothers” (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, and Late March 2012) to organize funding for county-by-county operations in key states, using tools such as the voter database Themis (see April 2010 and After) to build “sophisticated, county-by-county operations in key states.” The Kochs’ organizations have upped their spending plans to $400 million. Just the Kochs’ spending will outstrip the $370 million spent by the 2008 John McCain presidential campaign, and the $1 billion will exceed the $750 million spent by the 2008 Barack Obama campaign. The “independent” super PAC supporting the presidential campaign of Mitt Romney, Restore Our Future (ROF—see June 23, 2011 and January 31, 2012), plans on spending $100 million on the campaign to unseat Obama. American Crossroads and Crossroads GPS, the two Rove-led groups coordinating much of the Republican spending efforts, plan to spend $300 million on efforts to elect Romney and other Republicans (see February 21, 2012). The raised millions will go to, among other things, television, radio, and Web advertising; voter turnout efforts; mail and telephone appeals; and absentee- and early-balloting drives. The $1 billion is entirely “outside” spending. Romney and the Republican National Committee (RNC) intend to raise some $800 million on their own. According to Politico: “The Republican financial plans are unlike anything seen before in American politics. If the GOP groups hit their targets, they likely could outspend their liberal adversaries by at least two-to-one, according to officials involved in the budgeting for outside groups on the right and left.… The consequences of the conservative resurgence in fundraising are profound. If it holds, Romney and his allies will likely outraise and outspend Obama this fall, a once-unthinkable proposition. The surge has increased the urgency of the Democrats’ thus-far futile efforts to blunt the effects of a pair of 2010 federal court rulings—including the Supreme Court’s seminal Citizens United decision (see January 21, 2010)—that opened the floodgates for limitless spending, and prompted Obama to flip-flop on his resistance to super PACs on the left.” The super PAC supporting Obama’s re-election, Priorities USA Action, has not raised anywhere near the amount of money being garnered by Rove and the Koch brothers, partly because of Obama’s initial reluctance to have such groups operating on his behalf (see January 18, 2012). US labor unions may be able to raise some $200 to $400 million on behalf of Obama and other Democrats. The AFL-CIO’s Michael Podhorzer says his organization does not intend to try to match the Republican donor groups, but instead will spend most of its money reaching out to union members and other workers: “Progressives can’t match all the money going into the system right now because of Citizens United, so we have to have a program that empowers the worker movement.” Politico notes that billionaire Sheldon Adelson single-handedly kept the Newt Gingrich (R-GA) primary challenge afloat (see December 1, 2011, December 19, 2011, January 3, 2012, January 6, 2012, January 23, 2012, February 21, 2012, February 21, 2012, March 26, 2012, April 22, 2012, and May 2, 2012), and billionaire Foster Friess (see February 16-17, 2012) was the key funder for Republican primary challenger Rick Santorum (R-PA). Outside money helped “tea party” challengers defeat incumbents like Senator Richard Lugar (R-IN) in the 2012 primaries (see February 21, 2012). “Republicans have taken one big lesson away from campaigns conducted to date in 2011 and 2012,” Politico states: “outside money can be the difference-maker in elections.” [Politico, 5/30/2012]

Entity Tags: Foster Friess, Sheldon Adelson, Tom Donohue, American Crossroads GPS, American Crossroads, David Koch, Richard Lugar, Rick Santorum, Republican National Committee, Karl C. Rove, Michael Podhorzer, Newt Gingrich, Priorities USA Action, Charles Koch, Politico, Restore Our Future

Timeline Tags: Civil Liberties, 2012 Elections

Former Senator Russ Feingold (D-WI) writes an article for the Stanford Law Review discussing the dominance of “big money” in the nation’s elections in the wake of the 2010 Citizens United decision (see January 21, 2010), documenting his belief that the rise in small-donor contributions that put Democrats in office in 2006 and 2008 led to the Citizens United backlash, and calling for sweeping campaign finance reform. Feingold writes, “Without a significant change in how our campaign finance system regulates the influence of corporations, the American election process, and even the Supreme Court itself, face a more durable, long-term crisis of legitimacy.” Feingold heads Progressives United, an advocacy group that pushes for the overturning of the Citizens United decision and campaign finance legislation.
Background - Feingold gives the background of campaign finance reform in America: the 1907 Tillman Act which banned corporations from spending their money in elections (see 1907), which he says was spurred by the realization that “corporate influence corrupts elections”; the Taft-Hartley Act of 1947, which extended the Tillman ban to labor unions (see June 23, 1947); and more recent legislation, including the Bipartisan Campaign Reform Act of 2002 (BCRA—see March 27, 2002), which Feingold co-authored with Senator John McCain (R-AZ). “And for several election cycles, between 2004 and 2008, our system seemed headed towards more fair and transparent elections,” he writes. “But Citizens United changed everything.” The “road to corruption” in modern elections, he says, began when Democrats in the early 1990s began exploiting a loophole in finance regulation that allowed the creation of “soft money” groups (see January 8, 1980, November 28, 1984, December 15, 1986, and December 10, 2003) that allowed parties to solicit unlimited amounts of donations from corporations, labor unions, and individuals. “This system was corrupting,” Feingold writes. “Senators would solicit gigantic, unregulated contributions from the same corporations that had legislation pending on the Senate floor. Both parties were guilty.” The BCRA plugged the “soft money” loophole. Even as the BCRA began to reform campaign finance practices, Feingold writes, “the same corporate interests that fought McCain-Feingold set to work to dismantle it. In what was clearly an orchestrated effort by opponents of campaign reform (see January 25, 2010), a group called Citizens United produced a movie savaging the record of then-Senator Clinton (see January 10-16, 2008). Ostensibly intended to educate the public about conservative concerns regarding Clinton’s run for the presidency, the film was little more than a legal vehicle to challenge some of the common-sense restrictions enacted by the BCRA (see January 10-16, 2008, March 24, 2008, March 15, 2009, June 29, 2009, and September 9, 2009). Specifically, the creators of the film sought to challenge the BCRA’s requirement that electioneering communications—commonly known as ‘phony issue ads’ that attack a candidate in the days before the election, but don’t explicitly advocate voting for or against that candidate—be subject to the same disclosure requirements and contribution limits as other campaign ads.” The case was argued on narrow grounds about a specific provision of the BCRA, but the Court’s conservative justices, led by Chief Justice John Roberts, “manipulated the Court’s process to achieve that result” (see May 14, 2012). Justice John Paul Stevens wrote in his dissent to the majority opinion, “[F]ive justices were unhappy with the limited nature of the case before us, so they changed the case to give themselves an opportunity to change the law.” The ruling, Feingold writes, “created a framework for corruption parallel to ‘soft money.’” Instead of “soft money” organizations, Citizens United led to the creation of the “super PAC” (see March 26, 2010, June 23, 2011, November 23, 2011, January 4, 2012, January 4, 2012, January 13, 2012, and February 20, 2012). It has also called into doubt the legitimacy of US elections themselves, due to the “increasing skepticism about the campaign finance system.” Many voters now believe “that the average participant’s small contribution is irrelevant, and that the average person’s vote is grossly outweighed by the gigantic contributions now allowed.”
Internet Politics and Small-Donor Contributions - In part due to the BCRA, Feingold writes, “[f]or three election cycles, in 2004, 2006, and 2008, our system of campaign financing began to take shape in a way that channeled citizen participation and provided incentive for candidates to turn to the democratic support of online activists and small-dollar contributors.” He cites the 2004 presidential campaign of Howard Dean (D-VT), who went on to chair the Democratic National Committee (DNC), as the first powerful instance of “online organizing,” using the Internet to garner millions of dollars in small donations from individual citizens. In 2008, the presidential campaign of Barack Obama (D-IL) pushed the Dean innovation even further. The Obama campaign “raised a historic amount in small-dollar contributions,” Feingold writes, and created an online platform to engage supporters. All told, the Obama campaign raised $500 million online.
An Ineffective FEC - By 2008, he writes, the Federal Election Commission (FEC) was completely impotent. The agency “has been fatally flawed since the time of its creation—any administrative law professor will point out that a law enforcement commission with an even number of commissioners [six] is probably designed specifically not to enforce the law at all,” he writes. By 2008, the FEC only had two seated commissioners, and in effect was not enforcing campaign laws whatsoever. Even after eventually receiving a full complement of commissioners, he writes, the agency “remains ineffective, as even Democratic violators go unpunished as conservative commissioners remain unwilling, philosophically, to enforce any campaign finance law.”
2012: Corporations Trump Citizens - In 2012, corporate contributions far outweigh small-dollar donations by individuals. “[T]he most prominent actors in the 2012 election cycle are unnamed corporations and a small group of influential—primarily conservative—billionaires.” Seventy percent of registered voters think super PACs should be illegal, according to polls, and the favorability rating of the Court has dropped a significant amount. Overall, Feingold writes, the public is firmly against the Citizens United paradigm of campaign finance. He advocates strong legislation from Congress, fixing the “broken system of presidential public financing,” and replacing the “dysfunctional” FEC “with a true enforcement agency.” The ultimate repair of campaign finance lies with the Court, he says, noting that the Court has a chance to do some early repair with the Montana case it is now considering (see June 25, 2012). Regardless of what the Court does or does not do in the Montana case, he concludes, “[t]oday’s framework for corruption cannot stand.” [Stanford Law Review, 6/14/2012]

Entity Tags: Howard Dean, Bipartisan Campaign Reform Act of 2002, Barack Obama, Citizens United, Hillary Clinton, Russell D. Feingold, Federal Election Commission, John McCain, John G. Roberts, Jr, Stanford Law Review, John Paul Stevens

Timeline Tags: Civil Liberties

Politico reporters Kenneth P. Vogel and Tarini Parti report on the difficulty of getting solid information about the donors being organized by the billionaire Koch brothers. Oil magnates Charles and David Koch (see 1977-Present, 1979-1980, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, December 6, 2009, November 2009, July 3-4, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, and February 14, 2011) intend to raise at least $400 million to defeat President Obama in the 2012 election (see Late May 2012), and to ensure victory for Republicans in state and local races around the nation (see February 21, 2012). Vogel and Parti call the Koch political operation “its own political party,” almost, even going so far as to hold its own semi-annual conventions, including one scheduled for late June in San Diego. That convention will bring together dozens of millionaire and billionaire conservatives, who will write big checks for the Koch efforts. Additionally, the Kochs will unveil their new voter database, Themis (see April 2010 and After), which they expect will help in targeting potential Republican voters around the country. Themis played a big part in a recent successful effort to stop Governor Scott Walker (R-WI) from being recalled, as did huge amounts of Koch-organized donations on behalf of Walker. Three of the prime figures in the Koch efforts are convention “emcee” Kevin Gentry and political operatives Marc Short and Tim Phillips (see May 29, 2009); the operation is orchestrated primarily by Koch advisor and operative Richard Fink. Additionally, the Koch brothers intend to take over the Cato Institute think tank (see February 29, 2012) and make it more politically active. Minnesota television station owner Stanley Hubbard, a longtime Koch supporter, says: “They ask for support—and they get it because we all love our country and we have a different vision than do the liberals. I’ve gotten friends to be involved, and I think others have, too, so I would guess, yes, that’s expanding.” Vogel and Parti expand on how secretive the Koch network (which they call “Koch World”) actually is. They are unable to find out where the San Diego convention is to be held, though they did determine that it is scheduled to take place over the weekend of June 23. A Republican who has worked with Koch-backed groups says: “The Koch groups are very complex in the way they do things. They’re difficult to penetrate from the outside, which is smart. You often need a Sherpa.” The conventions are heavily patrolled by hired security guards, who at one recent convention threw out a Politico reporter under threat of arrest. Participants are required not to discuss the convention with outsiders, including making posts on Facebook or Web blogs. (The winter 2011 convention in Rancho Mirage, California, leaked to the press, sparking what Politico calls “raucous protests” outside the exclusive resort hosting the conference.) According to Vogel and Parti, Phillips runs the lobbying organization Americans for Prosperity (AFP—see Late 2004 and November 2009). Short oversees the spending of Koch network monies by other approved groups, some of which air television ads attacking Democrats. Gentry raises money for the Koch network. Gentry often uses urgent and even apocalyptic rhetoric in his fundraising appeals, warning potential donors of “dangerous and imminent threats” to American society and comparing the Koch conventions to the Continental Congress of 1776. One recent email lauded efforts by Supreme Court Justice Clarence Thomas to help the Koch brothers’ fundraising. Gentry also spearheads the fundraising efforts for an informal network of conservative think tanks such as the Heritage Foundation, AFP, and the Texas Public Policy Foundation. Some conservatives are uncomfortable with the Koch brothers’ attempts to gain dominance in conservative party politics. “Koch has been angling for the last three or four years to consolidate more of the conservative movement within their network,” says one conservative operative. “That’s why they do these seminars—to try to consolidate more big donors’ money and direct it into their projects.” The operative admits that the Koch fundraising efforts are very effective, saying, “Some of the donors believe giving to one source makes it easier for them instead of having to give to a dozen different places, and others just want to come out to hang with the billionaire brothers and be part of a very elite universe.” Koch conventions regularly feature prominent conservatives like Thomas and fellow Supreme Court Justice Antonin Scalia, Texas Governor Rick Perry, New Jersey Governor Chris Christie, Virginia Governor Bob McConnell, House Majority Leader Eric Cantor (R-VA), and right-wing radio hosts Rush Limbaugh and Glenn Beck. While federal documents track some $120 million in donations from recent Koch summit donors, most of the money raised and spent goes untracked, instead being hidden away by “nonprofit” groups that purport to be non-political social advocacy groups. Gentry has assured donors, “There is anonymity that we can protect.” [Politico, 6/15/2012]

Entity Tags: Cato Institute, Stanley Hubbard, Scott Kevin Walker, Tarini Parti, Texas Public Policy Foundation, Themis, Tim Phillips, Rush Limbaugh, Americans for Prosperity, Antonin Scalia, Bob McConnell, Richard Fink, Marc Short, Clarence Thomas, Christopher J. (“Chris”) Christie, Charles Koch, Politico, Eric Cantor, David Koch, Heritage Foundation, Barack Obama, Kenneth Vogel, James Richard (“Rick”) Perry, Kevin Gentry, Glenn Beck

Timeline Tags: Civil Liberties

Black Rock Group logo.Black Rock Group logo. [Source: Black Rock Group]The 2010 Citizens United decision (see January 21, 2010) requires third-party groups working on behalf of candidates or parties not to coordinate their efforts with those candidates or parties—to remain “independent.” Many political observers have suspected that some of these groups are coordinating their efforts with the campaigns and/or with one another. Two of the groups under suspicion are American Crossroads, a super PAC, and Crossroads GPS. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, the two have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads (see April 13-20, 2012). In early June, Crossroads GPS spent $70,000 in advertisements attacking Democratic Senate candidate Heidi Heitkamp (D-ND), half of its $140,000 spent on that race. Shortly before that run of advertisements began, Heitkamp’s Republican challenger, Rick Berg (R-ND), paid the Black Rock Group, a Republican consulting firm in Virginia, thousands of dollars for “communications consulting.” Black Rock is also contracted to perform “advocacy and communications consulting” for American Crossroads. Black Rock’s founding partner, Carl Forti, is American Crossroads’s political director and formerly served as Crossroads GPS’s advocacy director. (Forti also helped start Restore Our Future, presidential candidate Mitt Romney’s super PAC—see June 23, 2011). Black Rock partner Michael Dubke is the founder of Crossroads Media, which buys ads for American Crossroads and Crossroads GPS. Crossroads Media and Black Rock share offices. It would be illegal for Berg’s campaign to consult or coordinate with Crossroads GPS on advertisement strategies. It would not be illegal for Berg’s campaign to consult with Black Rock, and then for Black Rock to consult with Crossroads GPS. “The real scandal is what’s legal,” says Paul Ryan of the Campaign Legal Center. The Citizens United ruling said that groups would disclose their donors and activists, and groups would not coordinate with one another. Yet both provisions are either being ignored or dodged. Fred Wertheimer of Democracy 21 says: “The statu[t]e and the Supreme Court have been very strong on preventing coordination. But the FEC regulations have basically gutted the laws and given us very weak laws to prevent coordination between outside spenders and candidates… despite the fact that the Court’s entire decision in Citizens United is based on the notion that the expenditures are going to be entirely independent from the campaign.” Bill Allison of the Sunlight Foundation says, “[T]he FEC [Federal Election Commission] has a very narrow definition of what coordination actually is.” As long as a campaign and an outside group do not directly communicate, their use of a “common vendor” such as Black Rock is perfectly legal as long as several specific criteria are avoided. “It kind of boggles the mind, but that’s what the FEC has defined and there’s nothing illegal about it.” Ryan says: “It makes the coordination rules pretty meaningless. We have all of this special interest money that we feared might be in the system, and none of the meaningful restraints on coordination, and very limited disclosure.” Allison gives a hypothetical example: “If they’re using the same people to buy ads, and the campaign is telling the ad buyer, ‘We want you to buy ads in such and such and such,’ and the ad buyer does that, the super PAC can then say, ‘Well, run ads where they’re not running ads, or double their ads,’ or whatever. These guys are professionals and they know how to do this. That’s still not coordination.” There is no evidence that Black Rock is ferrying communications between Crossroads GPS and the Berg campaign; according to Black Rock spokesperson Chelsea Wilson, “Black Rock has had firewalls in place since last year which allows the firm to legally engage in federal campaign and independent expenditure or issue advocacy campaigns.” Crossroads GPS is not legally bound to disclose much of its information to the FEC, and it is impossible to know precisely what Crossroads GPS is paying Black Rock to do for it. The Berg campaign denies any coordination, saying in a statement: “While we do work with Black Rock, there is no coordination between our campaign and outside groups and we have no knowledge of what their plans are. We cannot control what outside groups will do.” Allison says that even if Berg’s campaign is being truthful, there are many ways campaigns and outside groups can legally coordinate, using a common advisor such as Black Rock or even individual consultants. “There can be coordination at the level of consultants, even if they’re not at same company,” he says, noting that many consultants know one another socially or have worked together in previous campaigns. It is also possible, and legal, for super PACs to find out where campaigns they are supporting are buying ads by contacting the campaigns of the opposing candidates, which keep track of such information. Forti, the CEO of Black Rock, is in a unique position to facilitate what reporter Alex Seitz-Wald calls “GOP non-coordination coordination,” as he “sits in the middle of a powerful nexus of outside spending groups and GOP political firms all run out of the same office suite in Alexandria, Virginia.” Charles Spies, the treasure of Romney’s Restore Our Future, says of Forti, “I don’t know of anybody who’s got as important of a role with the major outside organizations, both in 2010 and in 2012.” [Salon, 6/19/2012]

Entity Tags: Charles R. Spies, Bill Allison, American Crossroads GPS, American Crossroads, Alex Seitz-Wald, Carl Forti, Rick Berg, Steven Law, Paul S. Ryan, Chelsea Wilson, Crossroads Media, Fred Wertheimer, Black Rock Group, Michael Dubke, Restore Our Future, Heidi Heitkamp

Timeline Tags: Civil Liberties, 2012 Elections

Casino billionaire Sheldon Adelson gives $10 million to the billionaire Koch brothers, joining them in their efforts to defeat President Obama in the November presidential elections. Charles and David Koch (see 1977-Present, 1979-1980, 1997, 1981-2010, 1984 and After, Late 2004, May 6, 2006, April 15, 2009, May 29, 2009, November 2009, December 6, 2009, April 2010 and After, July 3-4, 2010, June 26-28, 2010, August 28, 2010, August 30, 2010, September 24, 2010, January 5, 2011, October 4, 2011, February 14, 2011, February 29, 2012, Late March 2012, and June 15, 2012) are planning to spend some $400 million to elect Republican candidate Mitt Romney (R-MA) and defeat Obama. The information about Adelson’s donation comes from a Republican Party source in Nevada. Adelson makes his pledge at a Koch donor convention in San Diego, the first time he has attended a Koch-sponsored political event. He has already given $10 million to a Romney “super PAC” (see June 13, 2012), $10 million to a “super PAC” operated by former Bush White House advisor Karl Rove, and $10 million to two groups backing Republican House candidates (see Mid-June, 2012). The Kochs are the driving force behind the “astroturf” organization Americans for Prosperity (AFP—see Late 2004, May 29, 2009, and November 2009), which has spent millions of dollars on advertisements attacking Obama and other Democrats. The Kochs are also funding Themis, a voter information database (see April 2010 and After). Koch funding extends well into state and even local elections. [Huffington Post, 6/16/2012; Washington Post, 6/29/2012]

Entity Tags: Sheldon Adelson, Barack Obama, Charles Koch, Willard Mitt Romney, David Koch, Karl C. Rove

Timeline Tags: Civil Liberties, 2012 Elections

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