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Profile: Lawrence Lindsey
a.k.a. Larry Lindsey
Positions that Lawrence Lindsey has held:
- President George W. Bushâs economic adviser
Lawrence Lindsey was a participant or observer in the following events:
According to Time magazine, “The US was all set to join a global crackdown on criminal and terrorist money havens [in early 2001]. Thirty industrial nations were ready to tighten the screws on offshore financial centers like Liechtenstein and Antigua, whose banks have the potential to hide and often help launder billions of dollars for drug cartels, global crime syndicates—and groups like Osama bin Laden’s al-Qaeda organization. Then the Bush administration took office.”
[Time, 10/15/2001] After pressure from the powerful banking lobby, the Treasury Department under Paul O’Neill halts US cooperation with these international efforts begun in 2000 by the Clinton administration. Clinton had created a Foreign Terrorist Asset Tracking Center in his last budget, but under O’Neill no funding for the center is provided and the tracking of terrorist financing slows down. Spurred by the 9/11, attacks, the center will finally get started three days after 9/11 (see October 2000-September 14, 2001). [Foreign Affairs, 7/2001; Time, 10/15/2001] Counterterrorism “tsar” Richard Clarke will later claim that efforts to track al-Qaeda’s finances began to make significant headway in 2000, after Treasury Secretary Robert Rubin stepped down and was replaced by Larry Summers. But, Clarke will claim, “When the Bush administration came into office, I wanted to raise the profile of our efforts to combat terrorist financing, but found little interest. The new President’s economic advisor, Larry Lindsey, had long argued for weakening US anti-money laundering laws in a way that would undercut international standards. The new Secretary of the Treasury, Paul O’Neill, was lukewarm at best toward the multilateral effort to ‘name and shame’ foreign money laundering havens, and allowed the process to shut down before the status of Saudi Arabian cooperation was ever assessed.” [Clarke, 2004, pp. 195-196]
Peabody Energy logo. [Source: BNet (.com)]Ira F. Engelhardt and Fred Palmer, the CEO and vice president of Peabody Energy, meet with Andrew Lundquist, the director of Vice President Cheney’s energy task force (the National Energy Policy Development Group—see May 16, 2001). Also at the meeting are Energy Secretary Spencer Abraham and Bush economic adviser Lawrence Lindsey. Peabody, the world’s largest coal company, is preparing a stock offering. The task force’s coal policy recommendations will directly impact the stock market’s response to Peabody’s IPO. The task force releases its recommendations (see May 16, 2001) less than a week before Peabody releases its stock offering on May 21. In part because the energy policy strongly emphasizes the use of coal, Peabody raises $420 million by going public—$60 million more than stock analysts predicted. Authors Lou Dubose and Jake Bernstein will write, “The task force was, in effect, flogging a stock offering.” [Dubose and Bernstein, 2006, pp. 17-18]
Clay Johnson. [Source: National Institutes of Health]A number of senior government officials who left the White House or the Eisenhower Executive Office Building when these buildings were evacuated return to the White House and join other senior officials in the Presidential Emergency Operations Center (PEOC), the bunker below the East Wing. [Sewanee Today, 2/24/2003; Bridgeland, 2012, pp. 5; LBJ Presidential Library, 9/3/2013] The officials were among dozens of government employees who went to the office of DaimlerChrysler in Washington, DC, after they were evacuated from the White House or the Eisenhower Executive Office Building next to it (see (9:45 a.m.) September 11, 2001 and (9:45 a.m.) September 11, 2001). Anita McBride, the acting director of White House personnel, contacted the White House Situation Room and let officials there know who was with her at the DaimlerChrysler building, and arrangements were then made for a few senior officials to go back to the White House (see (Shortly After 9:45 a.m.) September 11, 2001). [Politico, 9/9/2011] These officials head from the DaimlerChrysler building to the White House around midday. [LBJ Presidential Library, 9/3/2013] They are escorted through downtown Washington by members of the Secret Service. [Lindsey, 2008, pp. 86; Crescent, 10/3/2011] The officials who go back to the White House include Nicholas Calio, assistant to the president for legislative affairs; Larry Lindsey, assistant to the president for economic policy; Albert Hawkins, secretary of Cabinet affairs; Clay Johnson, assistant to the president for presidential personnel; Tucker Eskew, director of the White House Office of Media Affairs; and Logan Walters, President Bush’s personal aide. [Draper, 2007, pp. 142; Crescent, 10/3/2011; Bridgeland, 2012, pp. 5] After arriving at the White House, the officials go to the PEOC, where they join Vice President Dick Cheney, members of the Cabinet, and other senior White House staffers. [Lindsey, 2008, pp. 86; Bridgeland, 2012, pp. 5]
In an interview with the Wall Street Journal, Lawrence Lindsey, head of the White House’s National Economic Council, says he believes the Bush administration’s planned invasion of Iraq could cost between $100 and $200 billion. The cost, he says, will have only a modest impact on the US economy, since it will only amount to between one and two percent of the gross domestic product (GDP). “One year [of additional spending]? That’s nothing.” Mitch Daniels, director of the Office of Management and Budget, subsequently disputes the figure, saying it is “very, very high.” He suggests the total costs would run between $50 and $60 billion. [Wall Street Journal, 9/16/2002; Reuters, 9/18/2002; Washington Times, 5/13/2005] The White House press office also denies Lindsey’s prediction. As the current deputy press secretary Scott McClellan will later recall: “Lindsey’s biggest mistake wasn’t the size of the figures he chose to cite. It was citing any figures at all. Talking about the projected cost of a potential war wasn’t part of the script, especially not when the White House was in the crucial early stages of building broad public support. In fact, none of the possible, unpleasant consequences of war—casualties, economic effects, geopolitical risks, diplomatic repercussions—were part of the message. We were in campaign mode now, just as we had been when [President] Bush traveled the country leading the effort to pass tax cuts and education reforms. This first stage was all about convincing the public that the threat was serious and needed addressing without delay. Citing or discussing potential costs, financial or human, only played into the arguments our critics and opponents of war were raising. Lindsey had violated the first rule of the disciplined, on-message Bush White House: don’t make news unless you’re authorized to do so. Lindsey’s transgression could only make the war harder to sell.” As McClellan recalls, Bush is “steamed” at Lindsey’s comments. Lindsey will resign four months later. McClellan will write: “Larry, a highly regarded economist, had violated a basic principle of the Bush White House: the president doesn’t like anyone getting out in front of him. It’s his job to make the news, not anyone else’s—unless authorized as part of the script.” [McClellan, 2008, pp. 121-124]
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