Tag Archives: military industrial complex

Dwight D. Eisenhower’s Farewell Speech: The Speech Of the Anti-Trump

Friends of Padre Steve’s World,

Fifty-eight years ago today President Dwight D. Eisenhower, a man far different than President Trump gave his farewell address to the nation. While most people only quote his warning about the military industrial complex, certainly well worth noting, most Americans have never read or watched the speech in its entirety.

Now Eisenhower was no saint. He did not always make the right choices, and he made mistakes. At the same time he retained a decided sense of humanity, goodness, and humility that make him a far better President than some would credit him.

Eisenhower served his country for half a century in peace and war, he combined a military career of over forty years with eight years as President during an immense time of change and crisis. He was born before the first flight of the Wright Brothers, and by the time he left office would see super-sonic jets, inter-continental ballistic missiles, and hydrogen bombs.

When he was born the United States was not yet a world power and had only just emerged from the Civil War, failed Reconstruction, and a soon to be an officially racist, and White Supremacist separate but equal law of the land. By the time he left office he had sent Federal troops to ensure that African American Children could attend formerly segregated public schools, the Supreme Court had decided that separate but equal was unconstitutional, and the Civil Rights movement was beginning to make inroads into the heartland of the United States.

Eisenhower knew the tragedy, heartache, and bloodshed that went along with isolationism and political philosophies that declared America First. He represented a different America than the crude Social Darwinism of Trump and his most willing enablers, Evangelical Christians. Eisenhower was neither.

I ask my readers to take the time to either watch or read Eisenhower’s speech. The text is posted below in its entirety.

My fellow Americans:

Three days from now, after half a century in the service of our country, I shall lay down the responsibilities of office as, in traditional and solemn ceremony, the authority of the Presidency is vested in my successor.

This evening I come to you with a message of leave-taking and farewell, and to share a few final thoughts with you, my countrymen.

Like every other citizen, I wish the new President, and all who will labor with him, Godspeed. I pray that the coming years will be blessed with peace and prosperity for all.

Our people expect their President and the Congress to find essential agreement on issues of great moment, the wise resolution of which will better shape the future of the Nation.

My own relations with the Congress, which began on a remote and tenuous basis when, long ago, a member of the Senate appointed me to West Point, have since ranged to the intimate during the war and immediate post-war period, and, finally, to the mutually interdependent during these past eight years.

In this final relationship, the Congress and the Administration have, on most vital issues, cooperated well, to serve the national good rather than mere partisanship, and so have assured that the business of the Nation should go forward. So, my official relationship with the Congress ends in a feeling, on my part, of gratitude that we have been able to do so much together.

II

We now stand ten years past the midpoint of a century that has witnessed four major wars among great nations. Three of these involved our own country. Despite these holocausts America is today the strongest, the most influential and most productive nation in the world. Understandably proud of this pre-eminence, we yet realize that America’s leadership and prestige depend, not merely upon our unmatched material progress, riches and military strength, but on how we use our power in the interests of world peace and human betterment.

III

Throughout America’s adventure in free government, our basic purposes have been to keep the peace; to foster progress in human achievement, and to enhance liberty, dignity and integrity among people and among nations. To strive for less would be unworthy of a free and religious people. Any failure traceable to arrogance, or our lack of comprehension or readiness to sacrifice would inflict upon us grievous hurt both at home and abroad.

Progress toward these noble goals is persistently threatened by the conflict now engulfing the world. It commands our whole attention, absorbs our very beings. We face a hostile ideology-global in scope, atheistic in character, ruthless in purpose, and insidious in method. Unhappily the danger it poses promises to be of indefinite duration. To meet it successfully, there is called for, not so much the emotional and transitory sacrifices of crisis, but rather those which enable us to carry forward steadily, surely, and without complaint the burdens of a prolonged and complex struggle-with liberty at stake. Only thus shall we remain, despite every provocation, on our charted course toward permanent peace and human betterment.

Crises there will continue to be. In meeting them, whether foreign or domestic, great or small,there is a recurring temptation to feel that some spectacular and costly action could become the miraculous solution to all current difficulties. A huge increase in newer elements of our defense; development of unrealistic programs to cure every ill in agriculture; a dramatic expansion in basic and applied research-these and many other possibilities, each possibly promising in itself, may be suggested as the only way to the road we which to travel.

But each proposal must be weighed in the light of a broader consideration: the need to maintain balance in and among national programs-balance between the private and the public economy, balance between cost and hoped for advantage-balance between the clearly necessary and the comfortably desirable; balance between our essential requirements as a nation and the duties imposed by the nation upon the individual; balance between action of the moment and the national welfare of the future. Good judgment seeks balance and progress; lack of it eventually finds imbalance and frustration.

The record of many decades stands as proof that our people and their government have, in the main, understood these truths and have responded to them well, in the face of stress and threat. But threats, new in kind or degree, constantly arise. I mention two only.

IV

A vital element in keeping the peace is our military establishment. Our arms must be mighty, ready for instant action, so that no potential aggressor may be tempted to risk his own destruction.

Our military organization today bears little relation to that known by any of my predecessors in peace time, or indeed by the fighting men of World War II or Korea.

Until the latest of our world conflicts, the United States had no armaments industry. American makers of plowshares could, with time and as required, make swords as well. But now we can no longer risk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United State corporations.

This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence-economic, political, even spiritual-is felt in every city, every state house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.

In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.

We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted only an alert and knowledgeable citizenry can compel the proper meshing of huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.

Akin to, and largely responsible for the sweeping changes in our industrial-military posture, has been the technological revolution during recent decades.

In this revolution, research has become central; it also becomes more formalized, complex, and costly. A steadily increasing share is conducted for, by, or at the direction of, the Federal government.

Today, the solitary inventor, tinkering in his shop, has been over shadowed by task forces of scientists in laboratories and testing fields. In the same fashion, the free university, historically the fountainhead of free ideas and scientific discovery, has experienced a revolution in the conduct of research. Partly because of the huge costs involved, a government contract becomes virtually a substitute for intellectual curiosity. For every old blackboard there are now hundreds of new electronic computers.

The prospect of domination of the nation’s scholars by Federal employment, project allocations, and the power of money is ever present and is gravely to be regarded.

Yet, in holding scientific research and discovery in respect, as we should, we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite.

It is the task of statesmanship to mold, to balance, and to integrate these and other forces, new and old, within the principles of our democratic system-ever aiming toward the supreme goals of our free society.

V

Another factor in maintaining balance involves the element of time. As we peer into society’s future, we-you and I, and our government-must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.

VI

Down the long lane of the history yet to be written America knows that this world of ours, ever growing smaller, must avoid becoming a community of dreadful fear and hate, and be, instead, a proud confederation of mutual trust and respect.

Such a confederation must be one of equals. The weakest must come to the conference table with the same confidence as do we, protected as we are by our moral, economic, and military strength. That table, though scarred by many past frustrations, cannot be abandoned for the certain agony of the battlefield.

Disarmament, with mutual honor and confidence, is a continuing imperative. Together we must learn how to compose difference, not with arms, but with intellect and decent purpose. Because this need is so sharp and apparent I confess that I lay down my official responsibilities in this field with a definite sense of disappointment. As one who has witnessed the horror and the lingering sadness of war-as one who knows that another war could utterly destroy this civilization which has been so slowly and painfully built over thousands of years-I wish I could say tonight that a lasting peace is in sight.

Happily, I can say that war has been avoided. Steady progress toward our ultimate goal has been made. But, so much remains to be done. As a private citizen, I shall never cease to do what little I can to help the world advance along that road.

VII

So-in this my last good night to you as your President-I thank you for the many opportunities you have given me for public service in war and peace. I trust that in that service you find somethings worthy; as for the rest of it, I know you will find ways to improve performance in the future.

You and I-my fellow citizens-need to be strong in our faith that all nations, under God, will reach the goal of peace with justice. May we be ever unswerving in devotion to principle, confident but humble with power, diligent in pursuit of the Nation’s great goals.

To all the peoples of the world, I once more give expression to America’s prayerful and continuing inspiration:

We pray that peoples of all faiths, all races, all nations, may have their great human needs satisfied; that those now denied opportunity shall come to enjoy it to the full; that all who yearn for freedom may experience its spiritual blessings; that those who have freedom will understand, also, its heavy responsibilities; that all who are insensitive to the needs of others will learn charity; that the scourges of poverty, disease and ignorance will be made to disappear from the earth, and that, in the goodness of time, all peoples will come to live together in a peace guaranteed by the binding force of mutual respect and love.

It is a speech that calls to mind the best ideals of the American tradition; ideals that now lay trampled in the gutter by Trump and his Cult.

Until tomorrow,

Peace,

Padre Steve+

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Filed under civil rights, History, leadership, national security, News and current events, Political Commentary

One Nation: Natural Disasters Show How we Swim Together or Sink Alone

“In our personal ambitions we are individualists. But in our seeking for economic and political progress as a nation, we all go up or else all go down as one people.” Franklin D. Roosevelt

I am amazed when I see the Unholy Trinity of Pundits, Politicians and Preachers declare that when disaster strikes one part of the country or another that the Federal Government which represents all of us has moral or constitutional right to provide assistance to the stricken region.  The latest is the  unprecedented drought in Texas which has turned the state into a tinder-box that is now going up in flames.  It seems that in our now poisonous political climate the some have even used natural disasters to indicate their belief that God is either sending a message or judging the country.

We have allowed our political leaders, pundits and politically minded preachers of the political Left and Right to lead us to the precipice of calamity as they use fear and loathing to deepen the division of Americans for their fellow Americans.  They have been wildly successful in their efforts and we all are paying the price for their hubris.

We have seen the wealth of the nation squandered by government as well as the great financial houses and multi-national corporations that for all practical purposes own the government.  Dwight Eisenhower warned us of the danger of the “military-industrial complex” but I think that the “banking-financial complex” is far more dangerous because it is far more insidiously enmeshed in every aspect of our lives as individuals and as a nation.  As a result we are in dire financial straits that some say are so great that we can no longer help one another and those individual regions afflicted with disasters beyond their ability to respond to protect life, property, critical infrastructure and even business interests will have to get through disaster on their own, without assistance.

In the past couple of years we have seen many natural disasters compounded by a crippled economy devastate the lives of Americans or all political philosophies, faiths, regions and socio-economic classes.   In times past these disasters would have brought us together.  It would not matter if the disaster was an earthquake in California, floods in the agricultural heartlands of the Midwest, hurricanes along the Atlantic or Gulf coasts, wildfires that lay waste to lives and property in the Southwest or drought in various parts of the country, we used to be moved to provide every bit of assistance that could help.  Assistance provided by individuals, churches, relief organizations, local and State governments and the Federal Government.  But now because we are in deep financial constraints we see some politicians, pundits and preachers on the political right who make their living hating government are for practical purposes saying that we should leave our countrymen and women to their own devices even when overwhelmed by events that they cannot control and do not have the means to respond.

We that is the case until their neighbors are endangered or devastated, unless you are House Majority Whip Eric Cantor who told the residents of Mineral Virginia and the surrounding area that assistance would have to be matched by corresponding cuts when they were struck by the largest earthquake the region had seen since 1897 when a 5.8-6.0 temblor hit Pearisburg Virginia.  We saw Ron Paul openly state that the Federal Government had no business in responding to the ravages of hurricane Irene which killed about 40 people and caused an estimated 7-10 billion dollars in damage from North Carolina to New England which places it in the top 10 hurricanes in terms of insurance losses.  This is while some pundits mocked the areas affected by gloating about how Irene weakened before coming ashore and about the “over-reaction” the Federal, State and Local governments concerned with the effect of the storm on their citizens.  Of course the same people deriding the “over-reaction” would be the first to use a lack of action or poor preparation and response against the very leaders that they deride for doing too much.

However the truth is that we do need each other and are interdependent on each other as states, regions and individuals in ways that our ancestors never were.  It is impossible to turn back the clock as hat happens in one region does affect the rest of us.  When agricultural regions are flooded, dried up by unending drought or winter weather the cost of food goes up, when a hurricane shuts down oil production in the Gulf of Mexico the price of gas and heating oil goes up, when a tsunami strikes Japan automobile factories in the U.S. have to shut down for lack of key components and the cost of cars goes up because supply goes down.  The list can go on and on and on and if we do not begin to think of ourselves as one nation instead of a collection of “Red States and Blue States” we will see this grand experiment go down in flames.

The time for political, social and economic fratricide is over; we cannot endure long if we continue down this self destructive path.  The multiple crises that we face demand that we come together to solve them.  As President John F. Kennedy said, “Let us not seek the Republican answer or the Democratic answer, but the right answer.  Let us not seek to fix the blame for the past. Let us accept our own responsibility for the future.”

Peace

Padre Steve+

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Filed under leadership, natural disasters, Political Commentary

Follow the Money: The Real Motives behind those Seeking to Radically Change the Military Retirement System

The Military Times put it on the Front Page last Week: Wednesday Secretary of Defense Leon Panetta announced at the National Defense University that no changes were coming soon. Despite that Military personnel should be on guard as the Defense Business Board continues to push for retirement changes that are bad for the service member, bad for keeping the best people in the military but that are great for Wall Street and Defense Contractors

There is much talk amid the current debate on the National Debt and the budget crisis of changing the military retirement system.  Of course the argument now being used by the most fervent advocates of change is that military retirement is a “rich entitlement program” which is draining the Defense Budget and keeping us from buying weapons, to quote Defense Business Board member Richard Spencer “What are you going to trade off — a rich entitlements program, or boots and bullets for the troops?”

Now on the surface that seems logical but in truth it is simply a way for American business and financial corporations to gain control of military retirement for their own gain.  The way they propose is to eliminate the current program and institute a 401K based system as used in many businesses.  However they fail to mention that military service in time of war, which if anyone hasn’t noticed we have been at for 10 years is quite different than working in the civilian world, the little things like long deployments, family separation and need I say getting shot at by bad guys and watching your friends and comrades be killed our maimed do tend to make military service more arduous than 99% of those that work in the civilian world.

The ideas put out by the Defense Business Board gut the military retirement system.  These plans are not in any sense of the word an “overhaul” of the system but a complete scrapping of a system that has worked.  The members of the board seem to believe that the problem with the military budget is that military personnel make too much money and that their retirement if they get to 20 years is breaking the budget.  The members of the board blame cutbacks in weapons systems on the personnel budget ignoring that most of the weapons systems cancelled or cut back were due to the massive cost overruns charged by defense contractors and the failure of those contractors to deliver the systems that they promised on time on budget or for that matter operational.

That list includes the grounded F-22 Raptor of the Air Force, the mechanically challenged LPD-17 San Antonio class amphibious ships, the under armed, undermanned and corrosion prone Littoral Combat ships which are actually two distinctly different classes of ship increasing the cost of the project.  Then there is the FA-35 Joint Strike Fighter which is way over budget and far behind schedule and despite all efforts none are in operational units yet and those in test units were grounded last week.  The Marine Corps lost the much touted but never produced Expeditionary Fighting Vehicle, the planned replacement for its Assault Amphibian Vehicle when the troubled and expensive program was cancelled by former Secretary of Defense Robert Gates.  The Army had to cancel their Future Combat Systems Manned Vehicle project in 2009.  The list can go on and on and on all the while the contractors that were involved made a mint off of the military.  Much was due to the fact that all of these systems were over budget, behind schedule and often under performing what they were designed to do.

Something else that the Defense Business Board ignores is the massive cost of the wars in Iraq and Afghanistan and the money being paid to civilian defense contractors such as Halliburton, Kellogg Brown and Root, the former Blackwater and hundreds of other players in the dash for Defense Department cash. They also fail to mention that the financial industry which a number of heavy hitters on the board represent ran our and the world economy onto the rocks back in 2008.

The Defense Business Board was established by former Defense Secretary Donald Rumsfeld in 2001.  All of the members are appointed by the Secretary of Defense and all of the current board members were appointed by Rumsfeld or Robert Gates.

So who are the members of this board and who do they work for?

John B. Goodman, Chairman: Serves as managing director of the U.S. Defense portfolio for Accenture, a global management consulting, technology services and outsourcing company.

Mark H. Ronald, Vice Chairman: As senior advisor to Veritas Capital Management is a private equity fund that invests in a broad range of middle market companies through buyouts, growth capital investments, and leveraged recapitalizations. Veritas Capital invests in companies that provide outsourced services to the government – primarily in the areas of defense and aerospace, security, and infrastructure. It has also earned a reputation as a niche defense investor and for turning around troubled defense contractors.

Fernando Amandi: The former Chief Operating Officer for Citibank Consumer Bank International inLatin America, President of Motorola International Network Ventures based in London, England and Senior Vice President and General Manager of the American Express Consumer Financial Services Division in Latin America.  At present, he is the President of Fanta Real Estate Investments, LLC.  He served for 6 years as an enlisted member of the Florida Army National Guard.

Owsley Brown II: Retired chairman and CEO of Brown-Forman Corporation. He served from 1966 to 1968 as an Army intelligence officer at the Pentagon.

Pierre A. Chao: Managing Partner and co-founder of Renaissance Strategic Advisors. The company website gives this description “Renaissance Strategic Advisors is focused on the global defense, space, government services, homeland security and commercial aerospace market. Our clients are typically senior decision makers at the Board of Directors, CEO, CFO, sector president or investment partner level. We work with firms up and down the value chain, from component manufacturers to prime contractors to private equity/venture capital firms. Our clients span the full life cycle from early stage startup firms to industry leaders.”

Patrick W. Gross: Chairman of  the Lovell Group, a private investment and advisory firm, where he works with a portfolio of venture capital backed private technology and internet commerce companies. He is currently a director of four public companies: Capital One Financial Corporation, Career Education Corporation, Liquidity Services, Inc., and Mobius Management Systems, Inc. In the 1960’s he worked in the Pentagon as one of “McNamara’s Whiz Kids.”

Lon Levin: President of Sky Seven Ventures, which works with, helps manage, and invests in new technology companies, particularly space-based businesses, including Sentinel Satellite (CEO), Transformational Space (Chief Strategic Officer), Slacker Radio (Senior Advisor to CEO and Board), Integral Systems, Terrestar Networks, and Near Earth LLC.

Bonnie Cohen: A consultant specializing in management and financial issues.  Ms. Cohen serves on the Board of Cohen & Steers Mutual Funds, a $20 billion dollar family of mutual funds. Ms. Cohen is a member of the Cosmos Club and on the Endowment Investment Committee.

Mel M. Immergut: Chairman of Milbank, Tweed, Hadley & McCloy LLP “a global law firm, with approximately 550 lawyers who provide a full range of financial and business legal services to many of the world’s leading financial, industrial and commercial enterprises, as well as governments, institutions and individuals.”

Edward A. Powell Jr.: President and CEO of the USO World Headquarters.

David H. Langstaff: President & Chief Executive Officer TASC, Inc. A technology and intelligence services a subsidiary of Northrop Grumman and Litton industries, both major Defense contractors.

Phil Odeen: Non-executive Chairman of AES, an international energy company and Convergys, a leading outsourcing company.  Convergys is one of the leading firms that help companies in the United States and  Western Europe outsource jobs overseas.

Arnold Punaro: Chief executive officer of the Punaro Group, LLC, a Washington-based firm offering government relations, strategic planning, federal budget and market analysis, communications, crisis and emergency management, business development and sensitive operations consulting.  Punaro retired from the Marine Corps Reserve as a Major General and unlike the rest of the board served in combat as a Rifle Company Platoon Commander where he was awarded the Bronze Star for Valor and the Purple Heart Medal.  He was mobilized for the Gulf War, the Bosnia operations and again at the beginning of Operation Enduring Freedom.  Since his retirement he has been a consistent critic of the military retirement system.

Richard Spencer: Managing Director of Fall Creek Management LLC a privately held management consulting company. He was the former Vice Chairman and Chief Financial Officer of Intercontinental Exchange, Inc. (NYSE-ICE) which according to its website “operates leading regulated exchanges, trading platforms and clearing houses serving global markets for agricultural, credit, currency, emissions, energy and equity index markets. ICE operates three futures exchanges including London-based ICE Futures Europe, which hosts trading in half of the world’s crude and refined oil futures contracts traded each day. ICE Futures U.S. and ICE Futures Canada list agricultural, currency and Russell Index futures and options markets. ICE also provides trade execution, processing and clearing services for the over-the-counter (OTC) energy and credit derivatives markets.”  Spencer served as a Marine Corps Aviator from 1976-1981.

Bobby Stein: President of the Regency Group, a family holding company located in Jacksonville,Florida. The Regency Group has invested in many businesses including the water, sewer and waste, real estate, mortgage service, and fast food industries.

Robert I. Toll: is Chairman and Chief Executive Officer of Toll Brothers, Inc., the leading builder of luxury homes

Atul Vashistha: Founder & Chairman, neoIT Founder & Chairman, NEOGROUP. According to the Defense Business Board website he is “a leading proponent and practitioner of globalization and futurizing enterprises. He is recognized globally as one of the leading advisors on globalization and outsourcing. He founded Neo Group (Formerly neoIT) in 1999 with the mission of helping enterprises grow their business and improve operations by leveraging outsourcing and globalization. Neo also advises government and trade bodies on how to be better destinations for outsourcing. Neo also help enterprises manage and monitor supply relationships, risks and governance.”

Kevin Walker: Chief Operating Officer of Iberdrola USA a public utility company and subsidiary company of the Spanish Electric Company Iberdrola. Walker is a 1985 graduate of theUnited States Military Academy and served as a Field Artillery Officer from 1985-1991 including a tour during Operation Desert Shield and Desert Storm.

Joe Wright: Senior Advisor to the Chart Group, L.P. which is a merchant banking firm investing in both venture and growth capital companies that also provides senior level advice and capital access to corporate clients. According to the company website it “is a merchant banking firm organized in 1994 to sponsor alternative investments and provide discreet, senior level advice and capital access to corporate clients.”

Jack Zoeller: Chairman and CEO of Bank of Virginia, a subsidiary of  which he co-founded in 2009 to bring new capital and management to troubled community banks in the Eastern U.S. He has also served as CEO of Cordia Bancorp, Capital Risk Management Corporation, ComFed Bancorp Incorporated, North American Company Health and Life Insurance Company, and AtlantiCare Risk Management Corporation.  Zoeller is a Military Academy graduate and former Infantry Officer who served with the 82nd Airborne Division.

John Hamre Chairman of the Defense Advisory Board and Chairman of the Defense Science Board serve in an ex-officio status.

Senior Fellows:

Neil F. Albert: President and CEO of MCR, LLC, a company specializing in management consulting, business analysis and forecasting, and information systems.

Barbara Barrett: Former Ambassador to Finland until 2009.  She is an international business and aviation attorney. CEO of Triple Creek Guest Ranch, a Montana Hideaway resort.

Denis Bovin: Co-Chairman and Co-CEO of Stone Key Partners LLC, a strategic and financial advisory investment bank which “offers mergers and acquisitions advisory services.” Prior to forming Stone Key Partners, Mr. Bovin was Vice Chairman –Investment Banking, Senior Managing Director and Chairman of the Global Technology, Media and Telecom Group at Bear Stearns & Co. He was a member of the team that directed Bear Stearns’ Investment Banking activities and had direct responsibility for a wide variety of the Firm’s key domestic and international investment banking clients.

Frederic W. Cook: Founding Director of Frederic W. Cook & Co., an independent consulting firm providing advice to corporate boards and compensation committees on executive compensation matters.  The company website says that they provide “consulting assistance to corporations in order to develop compensation programs for senior executives, key employees, and board of directors.” Prior to forming the firm in 1973, Fred was a principal in Towers, Perrin, Forster & Crosby, a firm which he joined in 1966 following four years of service as an infantry officer in the U.S. Marine Corps.

Madelyn Jennings: A Founder of the Cabot Advisory Group, President of the McGregor Links Foundation, and Co-Chair of the Executive Committee of the Freedom Forum. She is the retired Senior Vice President of Personnel at the Gannett Co., the largest newspaper company in the U.S., publisher of USA TODAY. Previously she was Vice President of Human Resources at Standard Brands Inc.

Jim Kimsey: Created America Online, Inc. He currently serves as Chairman Emeritus. He attended theUnited StatesMilitaryAcademy atWest Point.  He served three combat tours as an airborne ranger, two in Vietnam, earning various awards for service and valor.


William R. Phillips: Principal in Charge of KPMG’s Federal Advisory unit, located inMcLean,Virginia. In this role he is responsible for the development and execution of the unit’s business strategy, client services and business operations. His team supports clients across the Federal Government, representing most all agencies, including the Departments of Treasury, Energy, Defense, and Homeland Security, in addition to the intelligence community. Services include financial management improvement, strategy, IT security and internal controls, and supply chain management. Prior to joining KPMG, Mr. Phillips was a Vice President at IBM responsible for their services to the global defense community.  While Mr. Phillips was not involved his company KPMG has been the focus of several major criminal and civil investigations. In early 2005, theUnited States member firm, KPMG LLP, was accused by the United States Department of Justice of fraud in marketing abusive tax shelters. KPMG LLP admitted criminal wrongdoing in creating fraudulent tax shelters to help wealthy clients avoid $2.5 billion in taxes and agreed to pay $456 million in penalties in exchange for a deferred prosecution agreement. KPMG LLP would not face criminal prosecution if it complied with the terms of its agreement with the government. On January 3, 2007, the criminal conspiracy charges against KPMG were dropped.

Dov S. Zakheim: Senior Adviser at the Center for Strategic and International Studies at the CNA Corporation a non-profit research organization that operates the Center for Naval Analyses and the Institute for Public Research. Previously he was Senior Vice President of Booz Allen Hamilton, where he was a leader in the Firm’s global defense practice. During the 2000 presidential campaign, he served as a senior foreign policy advisor to then-Governor Bush. From 2001 to April 2004 he was Under Secretary of Defense (Comptroller) and Chief Financial Officer for the Department of Defense.  He chairs the National Intelligence Council’s International Business Practices Advisory Panel, and is a member of the Commission on Wartime Contracting in Iraq and Afghanistan; the Defense Business Board, which he helped establish.

Consultants:

John M. B. O’Connor: Chairman of J.H. Whitney Investment Management, LLC, which according to its website “pursues high absolute risk adjusted returns in a limited number of highly specialized investment strategies in the public markets. Our specific areas of excellence are Asian markets, Global Commodity and Macro markets, the US Equity Volatility complex and US Small Capitalization deep value equities.”

Leigh Warner: Senior Advisor to business leaders and government officials.  Her biography on the DBB website is very vague as to what corporations that she worked for or managed except that she did at one time serve as Director for Marketing of Kraft Foods.

Admiral Vernon Clark USN Retired: Former Chief of Naval Operations sacrificed 30,000 Navy personnel and decommissioned dozens of ships early in order to “recapitalize” the fleet, something that never occurred. Current CEO of SRI International  “an independent, nonprofit research institute conducting client-sponsored research and development for government agencies, commercial businesses, foundations, and other organizations. SRI also brings its innovations to the marketplace by licensing its intellectual property and creating new ventures.” On Board of Directors of Raytheon Company, Rolls Royce North America, Horizon Lines, and the World Board of Governors of the USO. He is a Distinguished Professor atRegentUniversity and serves as a Trustee at RegentUniversity,Vanguard University and Air University. He is a senior advisor with Booz Allen Hamilton, and is on advisory boards with the Defense Policy Board, Fleishman-Hillard, Northrop Grumman, Robertson Fuel Systems LLC, Cubic Defense Applications, Inc., and the Executive Committee of Military Ministry.

General Michael Carns USAF Retired: Served as Vice Chief of Staff of the Air Force from 1991-1994. In 1995 he withdrew his nomination to become director of the CIA when it was revealed that he had failed to properly compensate a young Filipino who legally accompanied his family to the United States, an act he said that was an “innocent mistake.” He currently serves as the Vice Chairman of Priva Source, Inc., a small software firm specializing in the security and de-identification of large, sensitive databases, in Weston, Massachusetts and serves on the Board of Directors for Virtual Agility, Inc.

Putting it all Together

Everyone knows that our country needs to put its financial house in order.  However let us put a few things in perspective.

The 50% of Pay Retirement Myth: The 50% myth is widely circulated and most people wrongly assume that a military member that retires at 20 years gets 50% of their pay when they retire.  First the 50% is actually the average of their highest three years of base pay, usually amounting to about 47% rather than 50%.  A lot of people talk about the 38 year old retiree getting 50% of his or her pay for life.  First only a fraction of enlisted members can retire that early and most of those are in the pay grades of E6 and E7.  Many more especially officers, warrant officers and those that reach the E8 to E9 level stay longer meaning that they enter civilian life at a point where their age becomes a factor against them.  Additionally all lose special pays and things like the Basic Allowance for Housing, combat pay and other benefits. This means that the average service member is only receiving about 35% of their active duty pay and allowances when they retire.  Add to this the fact that many have incurred injuries including combat related injuries that follow them well past retirement.  The board is also recommending cutting medical benefits with General Punaro calling them a “GM type benefit” that cannot be sustained.

Reserve Retirement: Reservists that qualify for retirement receive that pay at the age of 60 and only receive a fraction of what they would if they had 20 active years. Reserve retirement is calculated on actual days of active duty, points for inactive duty training (drills) and points for being in a drilling status.  To have a “good year” for retirement a reservist has to accumulate 50 retirement points which can be any of the above plus points for correspondence or online courses offered by the military.  Most reservists spend many more hours and days in unpaid status in order to maintain their qualifications and ensure that their units are able to do their mission.

Many Military job specialties do not have a civilian equivalent: Here is another fact that the Board and other civilian critics of the military compensation like to ignore.  The way they market their proposal is to basically say that military retirement puts one on easy street and that veterans walk right into great jobs when they leave the military.  The unemployment rate for veterans is far higher than the national average as are medical and psychological problems related to their service.

What would replace the current system? A mandated program similar to a 401K which invests the service member’s contributions estimated at about 16% a year into mutual funds and the stock market.  The Board’s plan reduces retired pay 5% for each year before age 57 (17 years x 5% = 85% reduction), yielding only $3,600 a year at age 40 for an E7 at current pay rates.  At age 60, the retiree would begin drawing money from the 401(K)-type plan. Using their assumptions that project a 7% return on the investment, the retiree would draw $13,600 more per year until age 85. If the member wanted to withdraw money after age 85, the annual withdrawal amount would be reduced.  Now the plan would provide a limited benefit to those that leave the service before the 20 year mark and that is a plus for those service members.

Retaining Qualified People: The retirement system is a huge part of our military’s success.  It encourages well qualified people who could be making more money in the civilian world to stay in the military.  Back in the 1980s Congress passed a retirement reform plan that reduced the 20 year retirement benefit to 40% of the high three years. Secretary of Defense Weinberger said that it would make it hard to retain qualified people. Congress passed it and during the Clinton administration had to return to the 50% high-three plan because we were losing too many of our best people.  To use a rather quaint term “you get what you pay for.”

Follow the Money:

The crux of the Defense Business Board’s proposal is to make military retirement like civilian retirement.  The only problem is that civilian firms generally don’t have a “retirement plan” anymore.  Instead they make minimal investments in 401K programs which leave their “retirees” at the mercy of the economy and the markets.  I know many people in their 60s and 70s that have seen their nest eggs blow away in the latest market turmoil.  This is not exactly a secure investment especially when these same retirees will certainly face the reduction or elimination of their Social Security benefits that they like all people (except the miniscule number that can opt-out of it) contribute.

So it really isn’t the service member that benefits from this plan. Likewise if you admit that like in the 1980s and 1990s we will lose a lot of our best people if the retirement benefit is removed or substantially reduced with the resultant loss in experience and expertise and the effect on combat power.

So who benefits? Follow the Money: The reason that I put all the board member names and who they work for and what their connections are is so you can follow the money.  I have not seen any other articles or blogs that really trace this to the source.  Almost every single member, fellow or advisor has significant ties and relationships with major defense contractors or Wall Street forms that deal in mutual fund management, investment and businesses that focus on outsourcing. All were appointed by either Secretary of Defense Rumsfeld or Gates and represent institutions that are closely allied with the business interests of the Republican Party. Those that say that “Obama is threatening to cut military retirement” either are ignorant or lying.

Since none of the Board members are employees of the government and only are reimbursed for their per diem they are not fair arbiters.  They represent the very firms on Wall Street and the Defense Industry that will gain the most from this plan.  Almost all are so deeply enmeshed in what Dwight D. Eisenhower called the Military Industrial Complex that their ultimate loyalty is to those that they work for, those very firms that have swindled and cheated the government by their mismanagement and inefficiency in building weapons systems that are over budget, behind schedule and often cannot be fielded, have to be cancelled or truncated or are failures that cannot perform the mission that they were designed to do.  Likewise they represent the major financial interests that were hat in hand responsible for the financial meltdown of 2008, our record unemployment and possible double dip recession.  The firms that these men and women represent would receive a cash infusion of major proportions coming from the forced contributions by a million and a half active and reserve military members.

To his credit the new Secretary of Defense Leon Panetta said on Wednesday that there would be no changes coming soon and any changes will have to be passed by Congress.

Conclusion: We have been at war for 10 years and in various states of war or peace making operations for 20 years.  During that time only about one half of one percent of the American population served in the military at any given time.  To insinuate that the military personnel who have borne the brunt of these wars are greedy, overpaid or self serving is obscene and to imply that they veteran’s organizations that go to bat for the serviceman or women are working against our national security by fighting for military personnel is unconscionable. For the members of this board to suggest that somehow what military personnel receive in compensation is too much and the benefits too generous should look in the mirror.  The retired military members of the Board have not given up their retirement and are all connected with the major defense contractors and financial institutions that would benefit the most from this plan.  Many of the corporate members have been living off of other people’s money and government contracts almost all of their professional lives.  They are the people that pay lobbyists to ensure that they get tax breaks even as they collect every government contract and service that they can take.

I do not know any of the people on the board and many are philanthropists and some donate time and money to organizations that honor the military.  I am not saying that these are bad people. I simply am saying that they represent their interests and those of the corporations that they run or that employ them.  It is what is called “crony capitalism.”

Follow the money my friends follow the money.

Peace

Padre Steve+

Note: All information in this article regarding the members of the committee comes from the Defense Business Board website, the corporate websites of the various organizations that employ them and various business periodicals and publications on the web.  

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The “Comfortable” Experts and the Real Soldiers

“Too many people learn about war with no inconvenience to themselves. They read about Verdun or Stalingrad without comprehension, sitting in a comfortable armchair, with their feet beside the fire, preparing to go about their business the next day, as usual…One should read about war standing up, late at night, when one is tired, as I am writing about it now, at dawn, while my asthma attack wears off. And even now, in my sleepless exhaustion, how gentle and easy peace seems!” 

Guy Sajer “The Forgotten Soldier”

Currently well under one percent of Americans are serving in any branch of the military and of these not all have served with boots on the ground.  There is no shame for those that have not as land war is the prevue of the Army and Marines though a significant number of Sailors and some Air Force personnel have served alongside their Soldier and Marine comrades in arms.

Of those that serve there is not one who has not enlisted, reenlisted or renewed their Officer Oath of Office at least once since September 11th 2001.  There are those of us who have been in far longer but even we have made the commitment to continue in the service of our country knowing that anyone can be sent into harm’s way at any time.

Those that serve especially those that have served at the point of the spear in the remote badlands, or dangerous cities of Iraq and Afghanistan are a true minority group. We are a minority group composed of the best our nation has to offer. We represent every state and territory; we are citizens or in the case of many immigrants’ men and women seeking citizenship by risking their lives for a country that often despises their relatives based on their race, nationality or religion.  In fact this is not new; men have come to this country since our revolution from far countries because of the ideals that this nation represents.

This is a minority group composed of all races and whose families helped colonize this nation, came here in the following centuries and those that were here before the Europeans landed on this continent. We represent almost every religion and creed known to human kind. We come from cities, small towns, rural areas and island territories.  We are Democrats, Republicans, Libertarians and Independents.  We are Americans and we know war not from books, though many of us study military history, strategy and the lives of those great Soldiers, Sailors, Marines and Airmen that have gone before us. We know war because we have seen it. We have lost friends and seen others maimed or injured in mind, body or spirit. We have seen the wounded and the destruction which war inflicts on often innocent people who have the misfortune of living in a combat zone.

We do not make policy we carry out the orders of our national leaders and obey the laws passed by Congress. We are professionals.  We are not perfect but we serve.  In a sense we embody what the character of Colonel Joshua Chamberlain of the 20th Maine said at Gettysburg in Michael Shaara’s novel The Killer Angels and its film adaptation Gettysburg.

“This is a different kind of army. If you look at history you’ll see men fight for pay, or women, or some other kind of loot. They fight for land, or because a king makes them, or just because they like killing. But we’re here for something new. This has not happened much, in the history of the world: We are an army out to set other men free. America should be free ground, all of it, from here to the Pacific Ocean. No man has to bow, no man born to royalty. Here we judge you by what you do, not by who your father was. Here you can be something. Here is the place to build a home. But it’s not the land. There’s always more land. It’s the idea that we all have value, you and me. What we’re fighting for, in the end… we’re fighting for each other. Sorry. Didn’t mean to preach.” 

We serve at a time that our nation has been engaged in two very costly wars in terms of lives and treasure. We never thought that they would last as long as they have after all we were promised that and even told that the mission was “completed.” But the wars didn’t end and now our nation is involved in one, maybe two more in Libya and possibly Yemen.

We are told in spite of what we know from experience that the wars are going well and that we have turned a corner in Afghanistan even as the situation on the ground tells us otherwise.  We have the professional military experts in the think tanks telling us that the wars have to continue. Of course these men have never served in combat and what they know is gleaned from their interpretation of history and often dictated by their ideology and sometimes even worse by their connections to the defense industry, that which President and General of the Army Dwight D. Eisenhower so charmingly called “the military industrial complex.” Of course now we can and the media and elected officials who promote war to sustain their political power and enrich the powerful in their home districts.

Then there are those, especially the young that grow up with war as a series of video games and since very few meet the standards to serve in the military for a wide variety of reasons think that war is cool.  Look at the top selling games, almost all deal with virtual close combat, without any cost to those that play them.

Marines in Afghanistan under attack

Such men and in some cases women need to learn about war in the uncomfortable manner described by Sajer, a Frenchman that served in the German Army on the Eastern Front because one of his parents was German.  The problem is that those that promote war as a business and those that sell war to kids via the entertainment industry really don’t care about the real human beings, the men and women who serve knowing that these wars are unlikely to end anytime soon.  Even more frightening are people of strong religious convictions who promote war in order to see their views, especially about the Middle East vindicated.

Such are the comfortable experts who debate in comfort and write with a detached certitude that they alone have the correct view of the world.  There is a good case to be made that such people be held accountable for the wars that they advocate and the lives lost because of their hubris.

Peace

Padre Steve+

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Filed under Foreign Policy, History, iraq,afghanistan, middle east, Military, Political Commentary

Our Bottom Line is our Honor: Padre Steve Talks About Wall Street

“It was the mystical dogma of Bentham and Adam Smith and the rest, that some of the worst of human passions would turn out to be all for the best. It was the mysterious doctrine that selfishness would do the work of unselfishness.” G.K. Chesterton

The United States is one of the most religious of Nations especially in what we worship. I’m not talking about God her I’m talking about money. The High Priests of this religion are those that run the financial institutions as well as much of what is sometimes described as “American” business. The bottom line is their honor and profit their goal.

I tell you what there is no such thing as an “American” Banker, Investor, Broker or President of any major corporation based in the United States they are men and women without a country with their only loyalty being their profits and what benefits their bottom line. The truth is as Napoleon Bonaparte said so succinctly “Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.”

This has never been in more evidence than today.  The situation has been worsening since the end of the Cold War when under the name of “Free Trade” financial institutions and multinational corporations based in the United States have been selling us short once they figured that they could do better elsewhere like in Communist China as well as Third and Second World countries controlled by tyrants and despots who couldn’t give a damn about human rights.  Mind you that for many years it was American money, the American people and military power that enabled them to prosper particularly in the days when Presidents like Theodore Roosevelt maintain protectionist policies that actually helped them and the country at the same time.

The United States was never stronger than when we practiced protectionism. It benefited out people as well as businesses.  But when people like Teddy Roosevelt saw things that business did which were criminally irresponsible either in the treatment of workers or the environment business cried foul and it has been that way ever since. All “good” conservatives and libertarians have worshiped at the foot of the God of Capitalism and its prophets and the sacred doctrine of Free Trade.

The end of the year numbers are out and it looks like Wall Street and Major U.S. based corporations are doing quite well thank you while doing everything that they can to avoid being good citizens to the people of this country that made them what they are. Profits are up as are stocks and Wall Street is living high on the hog despite having made a mess of things to the point that the American Government had to give them our money, and lots of it to stay solvent and not crash the entire economy. It is as Thomas Jefferson once said “I sincerely believe, with you, that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.” To be blunt “American” financial institutions have raped this country and now that they are done with us are willing to take our money, use our military to protect or even enhance their operations overseas are willing to throw us under the bus because they can make more money elsewhere.

Well it seems that there is happiness in Mudville or shall I say on Wall Street as the year end numbers roll in.  Unfortunately for many Americans those profits won’t benefit this country.  Unemployment remains high, our personal and government debts are skyrocketing and deficits are killing the country while good paying technical and industrial jobs are moved overseas as supposedly American business shutters their U.S. production centers.  Meanwhile business and financial leaders carp about the United States not being a “friendly corporate environment” with “too much government regulation” and too many “powerful unions” as the reason for them to invest elsewhere.  Little things such as safety, the environment and even God forbid the lives of the people that work for them are of little concern, if the citizens of the U.S. or any other country decide that they want a bit more control of such issues then they are thrown under the bus by the financial institutions and corporations. If the U.S. Government asks them for anything it is “screw you” we’ll move to India where incidents what happened like the Union Carbide plant in Bhopal India don’t matter too much and Communist China which does its damndest to violate the human rights of its own people and run roughshod over its neighbors.

Andrew Jackson, perhaps the last President with the guts and moral principles to stand up to the likes of such people said:

“Every man is equally entitled to protection by law; but when the laws undertake to add… artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society — the farmers, mechanics, and laborers — who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their government.”

What Jackson said then is just as applicable now. Nearly every law that is passed in Washington is full of loopholes and benefits for the rich who then after bankrupting the country have the nerve to complain about government social programs. Usually they say that caring for the poor is the voluntary responsibility of individuals, churches and private charities which on principle I agree with, but on the whole is not practical because the need is too great mostly due to the power of the financials and the incompetence of government agencies.

The attitude of these supposedly “American” financial institutions and corporations seems to be all about “Free Trade.” The sad thing is that the moniker of “Free Trade” is somewhat Orwellian if you ask me.  The reality of “free trade” is that these interests should be able to do whatever they want, however they want without anyone being able to regulate them of tell them what to do.  In reality their carping about this not being a “business friendly environment” is them dictating to us that they should be able to operate for free from here while trading wherever they want without any responsibility or return to the country and people that made their success possible in the first place.  I would argue it is the financial houses and multi-national corporations based in the United States that are the real power in the world and that they have used us up and are now in the process of dumping us like they have so many World powers before us.

Napoleon saw this and said: “When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes. The late Marine Corps Major General and two time Medal of Honor winner Smedley Butler said back in 1933 concerning the way that financiers use the government, in particular the military to advance their interests:

“I spent thirty- three years and four months in active military service as a member of this country’s most agile military force, the Marine Corps. I served in all commissioned ranks from Second Lieutenant to Major-General. And during that period, I spent most of my time being a high class muscle- man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism….I helped make Mexico, especially Tampico, safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefits of Wall Street. The record of racketeering is long. I helped purify Nicaragua for the international banking house of Brown Brothers in 1909-1912. I brought light to the Dominican Republic for American sugar interests in 1916. In China I helped to see to it that Standard Oil went its way unmolested.”

Let’s fast forward on this while American soldiers get killed by Improvised Explosive Devices in Iraq and Afghanistan, many made with the assistance of Iranian agents the Treasury Department granted over 10,000 permits for U.S. corporations to trade with Iran with you guessed it my friends, some of the Largest U.S. banks reaping the profit.  This has been going on for years and while the bulk of such trade is limited to food items like Louisiana Hot Sauce it has also included deals which allowed other U.S. corporations to trade with Iranian companies that are suspected of involvement in terrorism or weapons proliferation.  http://www.foxnews.com/world/2010/12/23/report-treasury-okd-business-iran/#ixzz19SAQIwIu Pardon my ignorance but isn’t that like blood money when our troops die from Iranian assisted attacks?

Don’t worry though, we are in good company as such people have done the same to those that came before us as well, just look at Britain, once business bled her dry they cast her aside.  You see my friends our government doesn’t really control anything. It is the corporate and financial elites that run the country and dare I say the world.  James Madison saw it coming noting that “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance.”

Financial institutions and many multinational corporations have acted in the most unseemly of fashions literally bankrupting nations and individuals while they continue to prosper and it seems that they can never get enough.  Great Americans have warned of the dangers of the financial elites controlling both national as well as private lending institutions. In fact if you look at the leadership of the Federal Reserve and the Treasury Department there is an almost incestuous link between them and Wall Street. Dwight Eisenhower talked about the danger of the “military-industrial complex” but that threat is nothing compared to the control that those that come out of Wall Street Investment Banks have over the nations’ economic and monetary policy and over the legislators that supposedly exercise oversight of such institutions. Thomas Jefferson noted that:

“If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

While Andrew Jackson lectured the leaders of the 2nd Bank of the United States before (probably unwisely) withdrawing U.S. assets from the Bank and eventually destroying it:

“Gentlemen, I have had men watching you for a long time and I am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country. When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter, I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin! Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves.”

I think that even though Jackson’s decision hurt the economy which resulted in the Panic of 1837 but his reasons were sound:

It concentrated the nation’s financial strength in a single institution.

It exposed the government to control by foreign interests.

It served mainly to make the rich richer.

It exercised too much control over members of Congress.

It favored northeastern states over southern and western states.

Banks are controlled by a few select families.

Banks have a long history of instigating wars between nations, forcing them to borrow funding to pay for them.

Now tell me what has changed in this? If I hadn’t said that Jackson used these reasons to abolish the Second Bank of the United States one might think that I am talking about Wall Street and the Federal Reserve.  Let’s see….it looks to me like the only people getting rich are the Wall Street financiers and those that they favor. It seems that foreign nations, particularly the Chinese Communist have us by the balls holding a huge amount of our debt.  It seems that Congress under both Democratic and Republican control is in their power and will do anything that they want in order to “help the economy” but in reality secure their own power and I could go on but won’t.

Now I’m sure that some of my conservative friends and readers will label me as a liberal or Socialist but I’m not, I just want to see those that benefit from the security that our military provides and the hard work of Americans just actually start helping our side rather than looking to their our filthy money grubbing interests. Some things never change do they?

Peace

Padre Steve+

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