The Real Powers in the U.S.

Influences, influences!
By Richard Van Slyke

A primer on the most influential organizations in the U.S.

When thinking of political power, the most common perception is that it is a battle between the two major parties, the Republican Party and the Democratic Party.
Both parties present themselves to the American public as the guardians of a set of values and ideologies, thoughtfully packaged to appeal to voters who associate with those values. This is called a platform.

Candidates for office are viewed as the defenders of one of the two platforms, each with their own variations of the same theme. However, because of the huge amounts of money involved in campaigning, most politicians both Democrats and Republicans are in fact subservient to very powerful organizations that control their campaign funding.
The influence of corporate money is, of course, not a secret to the general public. What is less known is how it works.

With names that most people would not recognize, a few major organizations not only control access to Congress and higher office, but are also farming grounds for important positions in all branches and at all levels of government.
Their funding comes mostly from corporations, either directly or through foundations (usually tax-exempt) that they have established; another important source of funding are wealthy individuals or wealthy family foundations with strong ties with the corporate world. Almost all the top corporations in the U.S. “invest” in these organizations to defend their interest. The major backers are mainly in finance, oil and defense contracting, but basically every branch of the business world is represented.

The history of these organizations goes back to before the times of the Robber Barons of the late 1800’s. For example, the Richard Mellon Scaife Foundation is one of the most important funders of so-called “right-wing” organizations. It also happens that the Mellon Bank financed most of the ventures that gave rise to the Robber Barons.
The group of businesses that it financed became so powerful in the early 1900’s that they ended-up ripping most of the windfalls from corporate involvement in WWI and their wealth and power grew even bigger.

In 1921, shortly after the war, they financed the creation of the Council on Foreign Relations (CFR), which has been involved in decision-making in every conflict since then. Not surprisingly, the original CFR members included many of the same people that had previously been involved in the creation of the Federal Reserve Bank (in 1913), which had given them control over the U.S. finances.

In 1943, after the U.S. entered WWII, the American Enterprise Institute was created. AEI was very successful in forging ties with the government. Many of its members went on to occupy influential government positions, and in turn had many former government officials as members. George W. Bush is particularly fond of this organization and hired about twenty of its members in various positions in his administration.

Organizations of this type have multiplied, to form a network that has basically become the unofficial governing body of the U.S.

In 1953, five years after the creation of the state of Israel, the American Israeli Public Affairs Committee (originally named the American Zionist Committee for Public Affairs) was created, and has become what many consider to be the most influential of all organizations in regard to electoral campaign fundraising.

In 1973, the Heritage Foundation was born. It brought the power of corporate-backed organizations to new levels by spreading its wings not just over political influence but also social influence. It has been very successful not only in shaping domestic and foreign policies but also in affecting the way average U.S. citizens think, with its strong links to right-wing media.

Other major organizations that followed over the years, such as the Cato Institute (1977), the Council for National Policy (1981) and the Project for a New American Century (1997) have increasingly become more and more radical in their advocacy. The last two seem designed to appeal only to a fringe of extreme ideologists. Despite that (or maybe because of that), they are both heavily funded.

There is no doubt that the corporate world, while suppressing organized labor, is itself very organized. Hundreds of foundations have been set-up all over the U.S., most tax-exempt, that funnel money to organizations or other foundations with the special purpose of influencing and infiltrating the government. They not only dictate policies, but also have a high level of control over how laws are made and applied.
It’s all perfectly legal, because they make the laws that make it legal.

But what needs to be emphasized is that the same cast of characters keeps appearing at the origin and at the leadership of most of these organizations. They are also usually mostly funded by a select group of corporations and foundations.

The trick is simple:

• Corporations help create foundations with bylaws well written by corporate lawyers to make sure they obtain the tax-exempt status.
• Then, the money they give to these tax-exempt foundations is itself often a tax-exempt donation.
• The foundations in turn, with that money, fund organizations or foundations with usually also a tax-exempt status.
• These organizations or foundations then hire executives and lawyers from the corporations who created them, and position them as “advisors”.
• They create corporate-friendly “study-groups” that become a link between the political establishment and the corporate establishment.
• Some of the “advisers” are hired by the government or sometimes run for office with, of course, heavy corporate financial backing; which puts them in a position to draft and enact laws suitable to corporate needs.

A typical example is the Coors brewery, one of the major funders of right-wing organizations. The Coors family is the recipient of a large trust fund, and their agenda is a mix of business, politics, and religion. Through the family trust fund, they created the Castle Rock Foundation (with $ 36 Million to start with). The Castle Rock Foundation financed the start-up of The Heritage Foundation, and is also funding the Council for National Policy. With these two very powerful organizations, the full family agenda found its way deep into politics. However it is interesting to know that, despite their deep religious convictions, the Coors family business was involved for ten years in severe labor disputes with their workforce. That might explain why the CNP wants to bring this country’s laws back 200 years.

AIPAC

AIPAC, the American Israeli Public Affairs Committee (also known as The Lobby), is considered as the rainmaker in Washington D.C. It is widely accepted that no one can win an election at the national level without its support.
AIPAC has been very successful not only at controlling the U.S. Senate and House, but it has also managed to position key people in all branches and at all levels of the government.

Despite constant pressure to do so, it refuses to disclose its funding and has successfully fought off law suits on this matter.
It has also been successful in avoiding registration as a foreign agent, as required by the Foreign Agent Registration Act.

In 2004, some of its members were accused of receiving information from a U.S. Defense Department employee spying for Israel. The AIPAC offices were raided by the FBI, but no further legal action was taken.

AIPAC is an important facilitator for the Military Industrial Complex when it comes to arms sales to Israel. It contrast, it has never seriously made any effort to bring peace to the people of Israel.
As of October 2007 the following information can be found on its web site, which summarizes best the core of its activities.

The House on June 21 passed the fiscal year 2008 foreign aid bill (H.R. 2764) by a vote of 241-178 that includes $2.4 billion in military aid and $40 million in refugee assistance to Israel. The Senate passed the bill on September 6 by a vote of 81-12. The proposed aid for Israel represents the last year of a 10-year plan between Israel and the United States to phase out economic aid to Israel while gradually increasing the amount of military aid. Please thank members of the House and Senate who voted for the foreign aid bill and urge members who voted against it to support it in the future.

An excellent Salon.com article (link below) gives some impressive figures: 500 meetings between AIPAC representatives and members of Congress in one day!

Below are articles with more information on AIPAC:

The organization and its influence:

Wikipedia: the basics about AIPAC.
http://en.wikipedia.org/wiki/American_Israel_Public_Affairs_Committee

Antiwar.com: Where did AIPAC come from?
http://www.antiwar.com/orig/gsmith.php?articleid=11727

Salon.com
http://www.salon.com/news/feature/2007/03/16/aipac/

AIPAC’s status with the Federal Election Commission:

Law suit brought against APAIC:
http://www.law.cornell.edu/supct/html/96-1590.ZS.html

The spying case:

Wikipedia: the Lawrence Franklin espionage scandal.
http://en.wikipedia.org/wiki/Lawrence_Franklin_espionage_scandal

The American Conservative:
The lobby argues that good Americans spy for Israel.
http://www.amconmag.com/2007/2007_05_07/article.html

Bloomberg.com:
Pro-Israel Lobby Weathers Espionage Allegations, Gains Support
http://www.bloomberg.com/apps/news?pid=10000103&sid=aqKsV0UlPXng&refer=us

Antiwar.com: an article on the activities of AIPAC.
http://www.antiwar.com/cole/?articleid=3467

Wikipedia: David Steiner and his conversation with Haim Katz.
David Steiner, former president of AIPAC, brags about his political influence.
http://en.wikipedia.org/wiki/David_Steiner_(AIPAC)

This article has the transcript of the taped telephone conversation between Haim Katz and David Steiner.
http://www.whatreallyhappened.com/AIPACClinton.html

Secretary of State Rice Subpoenaed in AIPAC spying case.
Defense argues that AIPAC is regularly used for backchannel foreign policy.
http://www.jta.org/cgi-bin/iowa/breaking/105057.html

AIPAC influence:

George Soros: On Israel, America and AIPAC.
http://www.nybooks.com/articles/20030

The Christian Science Monitor:
The hidden cost of free congressional trips to Israel
http://www.csmonitor.com/2007/0126/p09s01-coop.html

Counterpunch article by John Walsh:
Why is the peace movement silent about AIPAC?
http://www.counterpunch.org/walsh04172007.html

Stopaipac.org.
A web site dedicated to fight AIPAC.
http://www.stopaipac.org/

American Enterprise Institute

The American Enterprise Institute is one of the oldest think tanks in the U.S.
Founded in 1943, shortly after the country entered WWII and almost all the production in the country was geared for the military industry, its main goal was and has remained to influence national policy in favor of big business.
It was so successful that since its creation there has been a permanent revolving door between its members and government positions.
The list of AEI’s members and donors is a who’s who of the most powerful people in American business.
Its members and participating “scholars” are corporate-friendly economists, financial analysts, corporate lawyers and politically tied individuals such as former President Gerald Ford, economist Milton Friedman, Vice-President Dick Cheney, Lynne Cheney (the Vice-President’s wife), former Speaker Of The House Newt Gingricht and former assistant Secretary of Defense Richard Perle.

The bulk of their work is to produce articles and researches that shape public opinion, and to create a framework for public policy that can be effectively translated into governmental action.
The fact that so many of its members come from the corporate environment and then enter the government, or come from the government (at the highest levels) to go back to the corporate world while in the institution has been a strong factor for the corporatization of the U.S. government.

The following links are articles related to the American Enterprise Institute:

RightWeb:
History, membership and achievements of AEI.
http://rightweb.irc-online.org/profile/1431

Wikipedia: the American Enterprise Institute. List of most prominent scholars and fellows.
http://en.wikipedia.org/wiki/American_Enterprise_Institute

Media Transparency: AEI and the institutional profile of some of its members.
http://www.mediatransparency.org/recipientprofile.php?recipientID=19

Sourcewatch:
American Enterprise Institute. Brief history, landmark issues, members, scholars and funding.
http://www.sourcewatch.org/index.php?title=American_Enterprise_Institute

Wikipedia:
Bruce Kovner, Chairman of the board of trustees of the AEI.
http://en.wikipedia.org/wiki/Bruce_Kovner

Wikipedia:
Lee Raymnond, Vice-Chairman of the board of trustees of AEI and former CEO and Chairman of Exxon-Mobil.
http://en.wikipedia.org/wiki/Lee_Raymond

The Guardian:
Scientists offered cash by AEI to dispute climate study.
http://www.guardian.co.uk/environment/2007/feb/02/frontpagenews.climatec...

People for the American Way:
An overview of the issues, activities, history and main members of AEI.
http://www.pfaw.org/pfaw/general/default.aspx?oid=4456

ExxonSecrets: Detailed funding of AEI by Exxon.
http://www.exxonsecrets.org/html/orgfactsheet.php?id=9

CommonDreams:
An article by Ralph Nader.
Has the American Enterprise Institute Lost Contact with Reality?
http://www.commondreams.org/views03/0613-01.htm

Salon.com: The real Iraq Study Group.
http://www.salon.com/news/feature/2007/01/06/aei/print.html

Council for National Policy.

The Council for National Policy: a Christian Taliban?

The CNP is an organization of business, religious and media leaders working to influence policies toward an extreme right bias.
They seem to succeed in influencing politicians who want to attract voters by using religion as part of their political platform.
One of the most secretive organizations in the U.S., it is very difficult to know in detail what it is that they do. But just a look at their members, their backgrounds, and their other affiliations, paired with a few occasional leaks, draws a good picture of their activities.
Some of its members are advocating the abolition of the secular laws that govern the U.S. to replace them with religious laws very similar to the sharia in fundamentalist Islam.

The articles below have more information about the Council for National Policy:

The basic facts about the CNP.
http://en.wikipedia.org/wiki/Council_for_National_Policy

Americans United for the separation of church and state:
Good overview of the CNP.
http://www.au.org/site/News2?page=NewsArticle&id=6949&abbr=cs_

Daily Kos:
Overview of the CNP.
http://www.dkosopedia.com/wiki/Council_for_National_Policy

Alternet: CNP’s ties and how it operates.
http://www.alternet.org/story/21372/

Source Watch: CNP.
http://www.sourcewatch.org/index.php?title=Council_for_National_Policy

ABC News: A blend article on the CNP.
http://abcnews.go.com/Politics/Story?id=121170&page=1

All Spin Zone: Council for National Policy: Wingnuts.
http://allspinzone.com/wp/2007/02/25/council-for-national-policy-wingnuts/

Council on Foreign Relations

Council on Foreign Relations.

The Council on Foreign Relations (CFR) is one of the least known organizations but probably the one that has the most influenced U.S. and world policies for almost a century.
Founded in1921, its original members included prominent financiers and businessmen in direct line from the “Robber Barons”. Some of them were at the origin of the creation of the Federal Reserve Bank in 1913, and all were either in government positions or in businesses that influenced decision-making during WWI.

Since its foundation, the CFR has included in its membership prominent personalities at the highest level of government (several U.S. Presidents and Secretaries of State), banking (Warburg, Morgan, Rockefeller), media (New York Times), and most major corporations in America.

It has close ties with England’s Royal Institute of International Affairs, considered as its sister organization. Together, they have been instrumental in building-up the arms race during the Cold War and there is almost no part of the world that hasn’t been affected by their influence.

Below are articles with additional information on the Council on Foreign Relations:

SourceWatch: Council on Foreign Relations.
http://www.sourcewatch.org/index.php?title=Council_on_Foreign_Relations
Wikipedia: Council on foreign Relations.

This article appears to have been written with a bias toward CFR.
http://en.wikipedia.org/wiki/Council_on_Foreign_Relations

RightWeb:
This profile of CFR is from 1989, but has information that is still relevant.
http://rightweb.irc-online.org/gw/1586

NNDB: List of members of CFR since its foundation.
This list shows the diversity of high-profile members at the international level.
http://www.nndb.com/org/505/000042379/

Wikipedia: Elihu Root, founder of CFR (former Morgan lawyer).
http://en.wikipedia.org/wiki/Elihu_Root

Heritage Foundation

The Heritage Foundation was founded in 1973 with the financial support of Joseph Coors (Coors breweries) and later Richard Mellon Scaife.
It is a think-tank, and does not officially lobby.

The foundation advocates “conservative” values, mainly free enterprise and strong defense. It has an interest in a wide range of issues, political as well as social.
It publishes papers, organizes conferences, and on a regular basis provides “analysts” to the media. One of its main achievements has been to associate corporate interests with “American values”, not only in the mind of the politicians, but also with the general public.

Its funding comes mainly from corporations and wealthy individuals with a strong interest in government deregulation and business-friendly tax laws.

Below are links to information on the foundation and its activities, current president Edwin Feulner, main financial backer Richard Mellon Scaife, and Edwin Fulner’s for-profit venture Belle Haven Consultants.

The Mediatransparency article lists the major donors to the heritage Foundation.
Many of these donors also help fund other major corporate-friendly organizations.

Wikipedia: The Heritage Foundation.
http://en.wikipedia.org/wiki/Heritage_Foundation

Sourcewatch: The Heritage Foundation.
http://www.sourcewatch.org/index.php?title=Heritage_Foundation

Rightweb: The Heritage Foundation.
http://rightweb.irc-online.org/profile/1477

Mediatransparency: List of Heritage foundation major donors.
http://www.mediatransparency.org/recipientgrants.php?recipientID=153

NNDB: List of Heritage Foundation members.
http://www.nndb.com/org/489/000049342/

Exxonsecrets.org: The Heritage Foundatiion has received $585,000 since 1998.
http://www.exxonsecrets.org/html/orgfactsheet.php?id=42

Wikipedia: Edwin Feulner.
Edwin Feulner has been the president of the heritage Foundation since 1977.
He was also the President of the Mont Pelerin Society and a member of the National Council for Policy.
http://en.wikipedia.org/wiki/Edwin_Feulner

Wikipedia: Richard Mellon Scaife.
Richard Mellon Scaife inherited money from the Mellon banking, oil and aluminum fortune.
http://en.wikipedia.org/wiki/Richard_Mellon_Scaife

Malaysia-today.
An interesting article on the dealings of Edwin Feulner and the Heritage foundation in Asia through Belle Haven Consultants.
http://www.malaysia-today.net/Blog-e/2005/04/hk-conduit-for-cash-clout.htm

Sourcewatch: Belle Haven Consultants.
http://www.sourcewatch.org/index.php?title=Belle_Haven_Consultants

Wikipedia: Belle Haven Consultants.
http://en.wikipedia.org/wiki/Belle_Haven_Consultants

Project for the New American Century.

The Project for the New American Century is the home of Neoconservatives (as they call themselves), also know as Neocons. They unabashedly present themselves as proponents of war at any cost against anyone who doesn’t go along with their views on America’s predominance over the world.

Many of their major supporters are defense contractors.

A web search for the Project for the New American Century summarizes the organization’s main objectives: "Welcome to the Project for the New American Century A neoconservative organization supporting greater American militarization, challenging hostile governments, advancing democratic and economic freedom".

Below are some interesting articles about PNAC:

SourceWatch: the history and membership of PNAC.
http://www.sourcewatch.org/index.php?title=Project_for_the_New_American_...

Right web: a recent overview of PNAC.
http://rightweb.irc-online.org/profile/1535

Information Clearinghouse: A William Rivers Pitt article from 2003 that is now a little outdated but outlines the basic principles of PNAC. http://www.informationclearinghouse.info/article1665.htm

The PNAC website: http://www.newamericancentury.org/