🆘 Your government is in the hands of super-rich people who never had to show anything to anybody!
And you can bet they plan to run the country the same way they have run their companies:
using shell games and pyramid schemes, fraud and shakedown, answerable to virtually no one.
These are people who have thrived in a culture of unaccountability and self-dealing.
They are also people who have convinced themselves that the accrual of wealth to themselves is a boon to the nation at large.
They like to think of themselves as job creators, dynamic players in shaping the global economy.
Because their magnificence exists to benefit us all, the reasoning goes, they need not show us the methods by which they perform their magic.
And indeed we do all stand, mouths agape, at the show, dazzled by the 22,000-square-foot mansion
(with a 6,200-square-foot guest house)
that serves as the home address of secretary of education #Betsy #DeVos,
or the 203-foot yacht (with an elevator inside) owned by #Robert #Mercer, the Trump donor and patron of chief White House strategist #Stephen K. #Bannon.
(Mercer’s daughter, #Rebekah, is said to have great influence in the West Wing.)
The source of Mercer’s wealth is ♦️Renaissance Technologies LLC, a privately owned firm known as a hedge-fund sponsor,
which was built by scientists who learned how to run algorithms that identify signals emanating from great masses of data in order to generate profitable financial trades.
After Renaissance founder and math wizard James Simons, a big donor to Democratic candidates and political action committees, retired and kicked himself upstairs to serve as the company’s chairman,
Mercer became co-CEO with #Peter #Brown, his longtime research partner.
At the Renaissance office in East Setauket on New York’s Long Island, no sign is visible from the road to tell you you’ve arrived at the headquarters of a rare kind of casino
—one that moves billions of dollars around the world.
Thick plantings of trees obscure any view of the low-slung Renaissance building from the public side of the security gate.
Renaissance is spectacularly successful
—Investopedia named Renaissance Institutional Equities, the LLC’s largest entity,
the top-performing hedge fund of 2016,
after it yielded investors a return of 20 percent for the year.
Mercer’s genius as a data and systems geek is part of the super-secret sauce of this “quant fund”
that turned other people’s assets-minus-liabilities into riches for his investors.
It’s like a very complicated version of counting cards at the blackjack table.
But the best-performing fund at Renaissance is one that only its employees can join
—and indeed they must in order to actualize their full compensation package.
Bloomberg’s Katherine Burton described the employee-only Medallion fund as
“finance’s blackest box.”
https://thebaffler.com/salvos/what-we-do-is-secret-stan
And you can bet they plan to run the country the same way they have run their companies:
using shell games and pyramid schemes, fraud and shakedown, answerable to virtually no one.
These are people who have thrived in a culture of unaccountability and self-dealing.
They are also people who have convinced themselves that the accrual of wealth to themselves is a boon to the nation at large.
They like to think of themselves as job creators, dynamic players in shaping the global economy.
Because their magnificence exists to benefit us all, the reasoning goes, they need not show us the methods by which they perform their magic.
And indeed we do all stand, mouths agape, at the show, dazzled by the 22,000-square-foot mansion
(with a 6,200-square-foot guest house)
that serves as the home address of secretary of education #Betsy #DeVos,
or the 203-foot yacht (with an elevator inside) owned by #Robert #Mercer, the Trump donor and patron of chief White House strategist #Stephen K. #Bannon.
(Mercer’s daughter, #Rebekah, is said to have great influence in the West Wing.)
The source of Mercer’s wealth is ♦️Renaissance Technologies LLC, a privately owned firm known as a hedge-fund sponsor,
which was built by scientists who learned how to run algorithms that identify signals emanating from great masses of data in order to generate profitable financial trades.
After Renaissance founder and math wizard James Simons, a big donor to Democratic candidates and political action committees, retired and kicked himself upstairs to serve as the company’s chairman,
Mercer became co-CEO with #Peter #Brown, his longtime research partner.
At the Renaissance office in East Setauket on New York’s Long Island, no sign is visible from the road to tell you you’ve arrived at the headquarters of a rare kind of casino
—one that moves billions of dollars around the world.
Thick plantings of trees obscure any view of the low-slung Renaissance building from the public side of the security gate.
Renaissance is spectacularly successful
—Investopedia named Renaissance Institutional Equities, the LLC’s largest entity,
the top-performing hedge fund of 2016,
after it yielded investors a return of 20 percent for the year.
Mercer’s genius as a data and systems geek is part of the super-secret sauce of this “quant fund”
that turned other people’s assets-minus-liabilities into riches for his investors.
It’s like a very complicated version of counting cards at the blackjack table.
But the best-performing fund at Renaissance is one that only its employees can join
—and indeed they must in order to actualize their full compensation package.
Bloomberg’s Katherine Burton described the employee-only Medallion fund as
“finance’s blackest box.”
https://thebaffler.com/salvos/what-we-do-is-secret-stan
What We Do Is Secret | Adele M. Stan
One needn’t be an ardent conspiracy theorist to behold the larger currents of moneyed impunity directing American affairs of state in the Trump era.The Baffler
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Chuck Darwin •
by contrast, comes from a simpler operation:
the marketing of what some have called a pyramid scheme that goes by the brand name #Amway.
Founded by her father-in-law in 1959, Amway distributes home products like dish soap and cosmetics through a network of home-based sellers
who are pressured to recruit more sellers in order to earn a bonus on the amount of product the distributor would then sell wholesale to the recruit.
That recruit would also be a distributor, looking for recruits of his or her own, in order to sell more products wholesale in order to get that bonus.
Note the emphasis on recruitment and bonuses rather than the direct-selling to retail customers,
who, in the end, were the ones for whom Amway products were ostensibly intended.
In the business press, Amway is often described as a “multilevel marketing company.”
In the 1970s, the Federal Trade Commission described its business model as
an “inherent fraud,” as historian Rick Perlstein reported in The Nation,
and tried to shut the company down.
The FTC failed in that effort, but did issue orders in 1979 slapping Amway for price-fixing and misrepresenting the kind of money distributors could expect to make.
In fact, Amway was made to tell distributors that they could wind up losing money.
Three decades later, in 2010, a class action lawsuit by former sellers (um, “distributors”) alleging Amway’s engagement in an “illegal scheme” was settled out of court.
According to USA Today, Amway agreed to pay $55 million to former distributors,
closely oversee high-level distributors who run training businesses,
strengthen refund policies
and make other changes estimated to cost an additional $100 million.
In Forbes’ 2016 listing of “America’s Largest Private Companies,” Amway clocks in at number twenty-nine.
The education secretary, née Elisabeth Prince, did not come into the DeVos family empty-handed.
Her own family of origin, while not as wealthy as her husband’s, was quite well-to-do through her father’s enterprise, 💥Prince Corporation💥, itself a privately held company until Johnson Controls bought it for $1.3 billion in cash in 1996.
Founder #Edgar #Prince, seeking to change the political culture to more closely resemble his own heartless Calvinism,
donated, according to Zack Stanton of Politico, “millions in seed funding to launch the
💥Family Research Council,”
the right-wing organization that represents and organizes politically conservative evangelical Christians,
and was famously designated an anti-LGBT hate group by the Southern Poverty Law Center.
Prince’s son, #Erik, used his windfall to found #Blackwater, the military contractor that went on to infamy when, in 2007,
its mercenaries gunned down civilians in a Baghdad city square.
Four Blackwater contractors were convicted in 2014 of killing fourteen unarmed Iraqis “in what prosecutors called a wartime atrocity,” according to the New York Times.
Blackwater, since sold and renamed #Academi, was also privately held.
It enjoyed more than $1 billion in government contracts.
In 2010, according to the Washington Post,
Prince moved to the United Arab Emirates “amid mounting legal problems for his American business.”
Both the #Mercers and the #DeVoses pour millions into the political system.
You can bet they plan to run the country the same way they have run their companies: using shell games and pyramid schemes, fraud and shakedown.
According to The New Yorker’s Jane Mayer, #Robert #Mercer “gave $22.5 million in disclosed donations to Republican candidates and to political-action committees” to influence the outcome of the 2016 presidential election.
And that doesn’t include possible donations to nonprofit advocacy groups, now allowed,
since the 2010 Supreme Court decision in Citizens United v. FEC,
to conduct advertising for and against political candidates.
But unlike PACs, these nonprofits
—classified as “social welfare” groups
—are not required to disclose their donors.
Politico’s Stanton reports that Betsy and Dick DeVos pretty much own Michigan politics,
having spent “at least $100 million on political campaigns and causes over the past 20 years.”
The DeVoses used political giving and influence to cut funding to public schools and pave the way for a large influx of charter schools,
and to see Michigan, home to the once-mighty United Auto Workers,
turned into a so-called right-to-work state,
an anti-union designation that translates into greater workplace control for business bosses, but few rights for the bossed
Chuck Darwin •
the #Mercers and the #DeVoses share another common trait:
both families are part of the right-wing political donor network built by #Charles and #David #Koch,
principals in Koch Industries,
the second-largest privately held company in the United States, according to Forbes.
Yet each power-donor family has also built its own assemblage of political organizations and entities.
Most of these are nonprofit organizations, but a few, such as the Koch-controlled data firm #i360
—a platform for collecting and processing voter data that is poised to gain operational control over the Republican Party
—are privately held, for-profit companies.
This makes the Kochs much more than an outsize example of the destructive force of “corporate money” in the political system;
rather, their efforts exemplify the rapid cartelization of our public life under a network of private wealth.
The Koch donor network is, by and large, a confluence of capital collected by privately held companies.
In essence, the money that flows through the Koch network of interlocking political entities isn’t just “#dark #money”
—it’s money double-dipped in darkness,
🔸first through the rules governing the companies from whence it came,
🔸and again as it flows into a political system clogged with equally opaque nonprofit political operations that exist outside of the political party structure.
#Mercer money is often double-dark, as well.
It’s said that the father-and-daughter team would like to build a constellation of their own institutions
to challenge the Kochs’ sprawling collection of nonprofit think tanks, advocacy groups, and the occasional for-profit political venture.
Witness Robert Mercer’s investment in a for-profit voter data startup that the Ted Cruz campaign subcontracted to use in the 2016 election cycle.
(Both Mercers backed Cruz during the GOP primary.)
Chuck Darwin •
the Mercers have drifted ever further out of the orbit of Planet Koch,
building up their own entities, including #Breitbart #News,
#Cambridge #Analytica (the data startup),
and the ironically named #Government #Accountability #Institute,
all of them featuring #Steve #Bannon, the self-described economic nationalist, in top slots
—until he joined the White House.
Cambridge Analytica, on whose board Bannon served, and Breitbart, where he was the chief executive, are private companies.
#GAI, which produced the campaign-season book
"Clinton Cash: The Untold Story of How and Why Foreign Governments and Businesses Helped Make Bill and Hillary Rich", by Peter Schweizer,
is a nonprofit organization.
Schweizer’s book, together with an accompanying movie executive-produced by #Rebekah Mercer, was designed to sully the reputation of Democratic presidential nominee Hillary Clinton.
It was part of a Bannon-crafted strategy to steer the sort of smears that usually bubble up from the right-wing fever swamps directly into the mainstream media.
It worked; in 2015 the New York Times and the Washington Post both made exclusive agreements with the GAI to report on advance excerpts of Clinton Cash.
#Bannon was wealthy before he met up with the Mercers,
first through his work as a banker for Goldman Sachs back when it was a privately held company,
and then through his own privately held ventures in movie-making and consulting.
Though Bannon’s wealth, when compared to that of Betsy DeVos, makes him a pipsqueak in the Trump money universe
(assets worth between $12 million and $54 million, according to the New York Times),
it nonetheless derives primarily from privately held entities.
Chuck Darwin •
#Steven T. #Mnuchin, who got a great deal during the financial crisis on IndyMac, a mortgage lending bank,
thanks to our government’s penchant for the socialization of risk and privatization of profit when entities considered “too big to fail” go into a state of distress.
Mnuchin and his fellow investors, a group that included liberal donor and hedge-fund honcho George Soros, changed the company name to #OneWest and began to aggressively foreclose on homeowners.
The bank earned Mnuchin and his partners a profit of $1.6 billion in its first year of operation,
even as the Federal Deposit Insurance Corporation was preparing to take a hit of nearly $11 billion “on bad loans that the Pasadena institution made before it was sold last March and renamed OneWest Bank,” according to E. Scott Reckard of the Los Angeles Times.
Then there’s commerce secretary #Wilbur #Ross, worth $2.5 billion according to Forbes, who started a second career in 2000 with the creation of his eponymous investment company,
which he later sold to Invesco for a reported $375 million.
#Reed #Cordish, special assistant to the president for intragovernmental and technology initiatives, is a scion of the family that owns privately held Cordish Companies,
involved in gaming and entertainment.
He’s said to be tight with Jared Kushner.
#Sonny #Perdue, Trump’s secretary of agriculture, founded the private company Perdue Inc., a trucking outfit,
with his wife, Mary, who was reported in 2005 to be the company’s sole shareholder.
(An official at Perdue Inc. declined to confirm to The Baffler whether this is still the case.)
And, while not a rich guy himself, CIA director #Mike #Pompeo founded a private company called #Thayer #Aerospace in the late 1990s with help from Koch Venture Capital, an arm of Koch Industries.
A Pompeo aide told the Washington Post that the Koch investment amounted to only 2 percent,
but there’s no way to really know, since the transaction took place between two privately held companies.
He later became president of #Sentry #International, another private company, before his 2010 run for a seat in the U.S. House of Representatives, which he won, again with an assist from the Koch brothers.
He’s also a climate-change denier—an appealing trait in a public official if you’re a fossil fuels magnate looking to buy one
Chuck Darwin •
👉President-elect Donald Trump owns a helicopter in Scotland.
To be more precise,
- he has a revocable trust that owns 99% of a Delaware limited liability company
- that owns 99% of another Delaware LLC
- that owns a Scottish limited company
- that owns another Scottish company
- that owns the 26-year-old Sikorsky S-76B helicopter,
emblazoned with a red “TRUMP” on the side of its fuselage.
Nearly all of Trump’s assets, they write, are encased in similar webs comprising Trump’s many privately held entities.
So-called shell companies, such as Trump’s Delaware LLCs, exist for no other reason than the receipt and movement of money
-- both publicly traded and privately held companies make free use of such protections,
but when used by private entities, the effect is not simply to avoid taxes,
but to obscure the sources of capital used by a company that is already exempt from making the most basic disclosures.
Similarly, the foreign countries supplying the corporate nameplates for U.S.-based firms seeking tax inversions grant wide latitude to private firms seeking optimal business environments.
Or you can stay closer to home:
Delaware, Nebraska, and Wyoming are likewise regarded as “secrecy jurisdictions”
—i.e., states that will ask no questions about the source of a company’s money or who its owner is.
The FACT Coalition, a watchdog group,
contends that because of the financial secrecy laws in these states,
♦️the United States is now “the second easiest place in the world
—after Kenya
—for a criminal or terrorist to open an anonymous shell company to launder their money.”
It’s easier to set up a shell company in some jurisdictions here, U.S. senator Sheldon Whitehouse says, than getting a library card:
“A library may actually require you to show up in person and sign for your card.”
Hugs4friends ♾🇺🇦 🇵🇸😷 hat dies geteilt