after-tax corporate profits fell 3.4% but Defense up 46%

Discussion in 'Economics' started by harrytrader, Nov 18, 2003.


    "The panicky effort of the Fed to stimulate economic growth does produce what it considers favorable economic reports, recently citing second quarter growth this year at 3.1%. But in the footnotes, we find that military spending—almost all of which is overseas- was up an astounding 46%. This, of course, represents deficit spending financed by the Federal Reserve’s printing press. In the same quarter, after-tax corporate profits fell 3.4%. This is hardly a reassuring report on the health of our economy and merely reflects the bankruptcy of current economic policy. "

    And who are the benefits ? Answer below:

    There’s no business like war business
    By William Bowles

    05/11/03: (Information Clearing House) There are so many connections between the Bushes, the ‘Defence’ establishment, the global trade in arms, that the mind boggles. That it barely gets a mention in the mainstream media (except of course, to simply ‘report’ it) is a scandal of the grandest proportions. But it only goes to show the power of big business and the political class they have installed in both the US and the UK (after all, John Major is employed by the Carlyle Group and BAE Systems, the major arms supplier to the UK, is part-owned by Carlyle). Not only the connections beggar belief but the sheer hypocrisy of the Bush government should put it in a new category in the Guinness Book of Records! As you’ll see from just of a few of the links to information on Carlyle below, their tentacles extend to many of the armed conflicts going on in the world. There’s no business like war business!

    I’ve presented them in no particular order, the common denominator is the Bush family.

    "Arms Buildup Enriches Firm Staffed by Big Guns"

    Defense: Ex-president and other elites are behind weapon-boosting Carlyle Group.

    By Mark Fineman, Times Staff Writer January 10 2002


    "The Best Enemies Money Can Buy"

    From Hitler To Saddam Hussein to Osama bin Laden - Insider Connections and the Bush Family's Partnership with Killers of Americans

    Brown Brothers, Harriman - BNL- and the Carlyle Group By Michael C. Ruppert


    "Legal Group Blasts Papa Shrub on Bin Laden Link"

    Bush Sr. Could Profit From War by Geoffrey Gray October 11th, 2001, Village Voice




    "CHRONOLOGY: The Bushes And The Carlyle Group"


    "The Bush-Carlyle Group Archive" Buzzflash

    A link to a number of links on the Carlyle Group


    Carlyle's way Making a mint inside "the iron triangle" of defense, government, and industry. By Dan Briody January 8, 2002 Red Herring


    "The Carlyle Group" Spectrazine

    Alfred Mendes looks at a single US investment corporation and asks some pertinent questions about democracy, terrorism and power.


    "Crony Reform" Slate

    How the access capitalists at the Carlyle Group became real businessmen.

    By Daniel Gross Tuesday, April 15, 2003


    "The Big Guns: The Carlyle Group and Defense Lobbying"


    "The Carlyle Group; Elder Bush in Big G.O.P. Cast Toiling for Top Equity Firm" by Leslie Wayne Monday, March 5, 2001, New York Times


    "The Pakistan-India conflict is being funded and fomented by the same faces that brought you the war on terrorism"

    A particularly evil manifestation of the arms business is the one in the on-going low intensity war between in India and Pakistan and the Carlyle Group’s role in it


    "US arms group heads for Lisbon: The Carlyle Group, integrated by the Bush and bin Laden families awarded a billion dollar contract to "rebuild Iraq", 6 April 2003


    "Bush's Favorite Terrorist Buddy & Carlyle Group (Bush, Sr. Etc) Profits Increasing From Afghan War"


    "Former President Bush Works for International Investment Firm With Ties To Saudi Arabia" - Company Had Bin Laden Family Connections Judicial Watch


    "Meet the Carlyle Group"

    How will President George W. Bush personally make million$, if not billion$ from the War on Terror? The easy way. He’ll inherit it. Former World Leaders and Washington Insiders Making Billions in the War on Terrorism


    "Carlyle group scandal"

  2. New York Times, 3/5/01:

    ...Traveling with the fanfare of dignitaries, Mr. Bush and Mr. Baker [use] their
    extensive government contacts to further their business interests as
    representatives of the Carlyle Group, a $12 billion private equity firm
    based in Washington that has parlayed a roster of former top-level
    government officials, largely from the Bush and Reagan administrations, into
    a moneymaking machine. In a new spin on Washington's revolving door
    between business and government, where lobbying by former officials is
    restricted but soliciting investments is not, Carlyle has upped the ante and
    taken the practice global. Mr. Bush and Mr. Baker were accompanied on
    their trips by former Prime Minister John Major of Britain, another of Carlyle's
    political stars. With door-openers of this caliber, along with shrewd
    investment skills, Carlyle has gone from an unknown in the world of private
    equity to one of its biggest players. Private equity, which involves buying up
    companies in private deals and reselling them, is a high-end business open
    only to the very rich. Over the last decade, the Carlyle empire has grown to
    span three continents and include investments in most corners of the world.
    It owns so many companies that it is now in effect one of the nation's
    biggest defense contractors and a force in global telecommunications.

    Its blue-chip investors include major banks and insurance companies,
    billion-dollar pension funds and wealthy investors from Abu Dhabi to
    Singapore. In getting business for Carlyle, Mr. Bush has been impressive. His
    meeting with the crown prince was followed by a yacht cruise and private
    dinners with Saudi businessmen. And Mr. Bush led Carlyle's successful entry
    into South Korea, the fastest-growing economy in Asia. After his meetings
    with the prime minister and other government and business leaders, Carlyle
    won a tough competition for control of KorAm, one of Korea's few healthy
    banks. The steady flow of politicians to lucrative private-sector jobs based
    on their government contacts is a familiar Washington tale. But in this case,
    it is being played out for more dollars, on a global stage, and in the world of
    private finance, where the minimal government rules prohibiting lobbying by
    former officials for a given period are not a factor. These rules say nothing
    about potential conflicts when former government officials use their
    connections and insights for financial gain, and they may attract more notice
    now that George W. Bush is president. Many of those involved with Carlyle,
    which invests largely in companies that do business with the government or
    are affected by government regulations, have ties to the Oval Office.

    For instance, Frank C. Carlucci, a Reagan secretary of defense who as much
    as anyone is responsible for Carlyle's success, said he met in February with
    his old college classmate Donald H. Rumsfeld, the secretary of defense, and
    Vice President Dick Cheney, himself a defense secretary under former
    President Bush, to talk about military matters - at a time when Carlyle has
    several billion-dollar defense projects under consideration.... "Carlyle is as
    deeply wired into the current administration as they can possibly be," said
    Charles Lewis, executive director of the Center for Public Integrity, a
    nonprofit public interest group based in Washington. "George Bush is getting
    money from private interests that have business before the government,
    while his son is president. And, in a really peculiar way, George W. Bush
    could, some day, benefit financially from his own administration's decisions,
    through his father's investments. The average American doesn't know
    that and, to me, that's a jaw-dropper."

    It is difficult to determine exactly how much money the senior Mr. Bush and
    Mr. Baker have made. Mr. Baker is a Carlyle partner, and Mr. Bush has the
    title senior adviser to its Asian activities. With a current market value
    of about $3.5 billion on Carlyle's equity and with the firm owned by 18
    partners and one outside investor, Mr. Baker's Carlyle stake would be worth
    about $180 million if each partner held an equal stake. It is not known
    whether he has more or less than the other partners. Unlike Mr. Baker, Mr.
    Bush has no ownership stake in Carlyle; he is an adviser and an investor and
    is compensated by obtaining stakes in Carlyle investments.
    Carlyle executives cited, for example, Mr. Bush's being allowed to put money
    he earns giving speeches for Carlyle into its investment funds. Mr. Bush
    generally receives $80,000 to $100,000 for a speech. He sits on no
    corporate boards other than Carlyle's. Carlyle also gave the Bush family a
    hand in 1990 by putting George W. Bush, who was then struggling to find
    a career, on the board of a Carlyle subsidiary, Caterair, an airline-catering

    With $12 billion from investors, Carlyle claims to be the nation's largest
    private equity fund and makes money by investing in undervalued companies
    and reselling at a profit.... The California state pension fund invested
    $305 million with Carlyle, and the Texas teachers pension fund - whose
    board was appointed when George W. Bush was governor - gave Carlyle
    $100 million to invest in November. Carlyle also works as a financial adviser
    to the Saudi government....Carlyle has done well for its investors, returning
    an average of 34 percent a year over the last decade, in line with other
    private equity funds. It has done this by buying what it knows best -
    companies that are regulated by the government. Nearly two-thirds of its
    investments are in defense and telecommunications companies, which are
    affected by shifts in government spending and policy. ...Carlyle has
    become the nation's 11th largest defense contractor, owning companies that
    make tanks, aircraft wings and a broad array of other military equipment. It
    also owns health care companies, real estate, Internet companies, a
    bottling company and even Le Figaro, the French newspaper.... And its
    access extends well beyond American shores. In Europe, Carlyle has
    assembled an advisory board that besides Mr. Major includes Karl Otto P÷hl,
    former president of German's Bundesbank, and the past or present chairmen
    of B.M.W., Hoffman-LaRoche, Nestlé_, LVMH-Moït Hennessy, Louis Vuitton
    and Aerospatiale, the French Airbus partner. Carlyle's Asia advisory board,
    which helps raise money and finds and reviews deals, includes former
    President Fidel V. Ramos of the Philippines, the former prime minister of
    Thailand and the executive director of the Abu Dhabi Investment Authority.
    The former South Korean prime minister Park Tae Joon was also an adviser
    to Carlyle....
    In an office adorned with photographs of Mr. Carlucci and the politically
    mighty - he sits beneath an Oval Office picture of himself and Mr. Reagan -
    Mr. Carlucci makes it clear that his extensive government and global ties are
    as fresh as ever. "I know Rumsfeld extremely well," Mr. Carlucci said in an
    interview. "We've been close friends throughout the years. We were college