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Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated: 1 00:00:46,020 --> 00:00:50,730 There is a question, a reasonable question, of: 2 00:00:51,220 --> 00:01:00,140 „Okay, here's this agency and it's engaged in criminal activities around the world 3 00:01:01,570 --> 00:01:03,170 some of which are quite deadly 4 00:01:03,680 --> 00:01:10,710 some of which are quite provocative, in the sense of laying the ground work for large scale military conflict. 5 00:01:11,110 --> 00:01:13,420 And it's happening in a lot of countries. 6 00:01:13,600 --> 00:01:19,370 This is not unique to the United States. The US learned some of this from the British, 7 00:01:19,540 --> 00:01:24,250 who've learned it, in turn, during the 19th century, 8 00:01:24,540 --> 00:01:30,080 where they were a dominant imperial power around the world. They cut their teeth in this stuff. 9 00:01:31,340 --> 00:01:39,170 And other major powers are definitely engaged in, and capable of, these same types of operations. 10 00:01:40,020 --> 00:01:43,170 And small powers as well. Israel is an example. 11 00:01:43,170 --> 00:01:49,280 The CIA grew out of the OSS during WWII - which had been established during WWII 12 00:01:49,420 --> 00:01:56,850 Its earliest years are interesting because the new president, Harry Truman, did not trust the OSS, 13 00:01:56,850 --> 00:02:04,510 because he felt it was too dominated by parts of the Democratic Party that he didn't align himself with 14 00:02:04,510 --> 00:02:09,770 so he abolished the OSS. Then, they first created a 15 00:02:09,770 --> 00:02:14,340 smaller intelligence agency from the remains of the old OSS, 16 00:02:14,340 --> 00:02:16,850 called the Central Intelligence Group, 17 00:02:18,880 --> 00:02:24,770 that was focused on analyzing intelligence. It wasn't a covert operations agency. 18 00:02:24,970 --> 00:02:30,200 What Truman wanted was to have one place, one inbox - and another stays (??) 19 00:02:30,200 --> 00:02:35,800 – and other people don't know this – there actually were a box made out of wood, that said ‘IN’ 20 00:02:35,800 --> 00:02:41,600 and in one inbox would come all information, whether it was from intercepted communications or satellite photography, 21 00:02:41,680 --> 00:02:46,540 or defector reports, or clandestine reports, embassy, milly (military?) 22 00:02:46,540 --> 00:02:53,820 It would all come to that one person, and that person – and I was one of those persons, OK? – that person would be... 23 00:02:57,340 --> 00:03:03,420 Not supposed to use that word, you know Washington, but if you promise not to let it get out of this room – it's: 24 00:03:03,420 --> 00:03:05,880 accountable. OK? 25 00:03:05,880 --> 00:03:11,450 One person would be accountable for looking at that stuff, pouring through it and if it were important - 26 00:03:11,450 --> 00:03:18,940 and it often was (I was working in the Soviet Union) - then what you wrote up, assuming it was good analysis, 27 00:03:18,940 --> 00:03:21,880 that could end up on the president's desk the next morning. 28 00:03:22,420 --> 00:03:26,400 Unadulterated synthesis of information. 29 00:03:26,570 --> 00:03:34,140 About two years after that, many of the agents who had worked on the covert operations side: 30 00:03:34,140 --> 00:03:40,370 the paramilitary warfare operations, black operations, that sort of thing - 31 00:03:40,970 --> 00:03:47,540 were re-established in an outfit called the Office for Policy Coordination. 32 00:03:47,540 --> 00:03:55,600 And this "office" eventually grew to have about 5,000 agents in the early Cold War years. 33 00:03:57,250 --> 00:04:04,740 The existence of this office was itself entirely top secret. It had no open existence at all. 34 00:04:04,740 --> 00:04:15,680 It wasn't until some years later that the Office of Policy Coordination was folded into the CIA, and the CIA became an agency 35 00:04:15,680 --> 00:04:17,680 – I'm talking about the early 1950s now – 36 00:04:18,420 --> 00:04:29,080 that openly had both a clandestine, black operations arm, and an intelligence analysis arm. 37 00:04:31,970 --> 00:04:34,800 The OPC was set up to organize: 38 00:04:53,600 --> 00:05:02,650 What happened at the end of WWII when Truman disbanded the OSS? 39 00:05:02,770 --> 00:05:07,600 The covert operators were in the wilderness for a little while, 40 00:05:07,600 --> 00:05:15,250 and some of them had been leading Wall Street bankers and lawyers, and there's a certain logic there: 41 00:05:15,250 --> 00:05:24,310 because prior to the war, the people engaged in international trade and international law 42 00:05:24,570 --> 00:05:31,170 were a relatively small number of people, and they were the specialists in international affairs for the US. 43 00:05:32,200 --> 00:05:39,540 So, for example, the man who was later to become chief of covert operations, black operations, for the CIA 44 00:05:39,600 --> 00:05:43,600 was a man named Frank Wisner, quite a prominent Wall Street lawyer. 45 00:05:43,600 --> 00:05:47,970 The man who later became the director of the CIA was Allen Dulles. 46 00:05:47,970 --> 00:05:57,310 His career, prior to WWII was basically in international law and cutting deals of one sort or another with trade partners around the world. 47 00:05:57,310 --> 00:06:01,600 Some of the trade partners included fascists, 48 00:06:02,880 --> 00:06:07,020 some aspects of Nazi Germany or companies associated with Nazi Germany, 49 00:06:07,020 --> 00:06:08,940 Italy, prior to the war; 50 00:06:08,940 --> 00:06:15,170 in WWII, in Poland there had been a military dictatorship, very authoritarian country. 51 00:06:15,170 --> 00:06:23,740 Allan Dulles made part of his living by helping to finance deals that kept that government in power. 52 00:06:23,740 --> 00:06:26,140 There's many other examples along the same lines. 53 00:06:26,140 --> 00:06:35,200 During the war, they went into covert operations for the US government because they had some expertise in dealing with foreign countries. 54 00:06:35,200 --> 00:06:38,280 After the war, they went back to Wall Street... 55 00:06:38,680 --> 00:06:40,250 For a short time. 56 00:06:40,250 --> 00:06:49,820 Then, by the late 1940s, they were back in the intelligence complex, in the two examples that I mentioned, in leadership and management type roles. 57 00:06:51,480 --> 00:06:54,880 From the beginning, the CIA was steeped in elitism. 58 00:06:55,620 --> 00:06:59,540 Its top leadership was made up mostly of Wall Street lawyers, 59 00:06:59,850 --> 00:07:04,310 while new recruits were sought through the top Ivy League universities. 60 00:07:05,600 --> 00:07:09,850 Gaddis Smith, a history professor at Yale, remarked that: 61 00:07:20,140 --> 00:07:23,510 One Yale institution would prove especially significant: 62 00:07:23,770 --> 00:07:27,020 a ghoulish fraternity known as Skull and Bones. 63 00:07:32,480 --> 00:07:37,140 Its membership has included some of the most powerful figures in American history. 64 00:07:38,220 --> 00:07:43,340 Among them was F. Trubee Davison, the CIA's first director of personnel. 65 00:07:45,250 --> 00:07:50,940 Skull and Bones gained national notoriety during the 2004 presidential election 66 00:07:51,170 --> 00:07:58,910 when it was revealed that the Republican candidate George W. Bush, as well as the Democratic candidate, senator John Kerry 67 00:07:59,280 --> 00:08:01,650 were members of the same secret society. 68 00:08:02,820 --> 00:08:06,940 The meeting place for members of Skull and Bones is known as „The Tomb“. 69 00:08:07,710 --> 00:08:12,020 Inside are dozens of human skulls, including those of children, 70 00:08:12,020 --> 00:08:16,140 as well as that of the famed Apache warrior, Geronimo. 71 00:08:16,510 --> 00:08:21,570 According to internal records, Geronimo's grave was pilfered in 1918 72 00:08:21,800 --> 00:08:25,050 by George Bush Jr's grandfather, Prescott Bush. 73 00:08:26,650 --> 00:08:34,250 When in 1986, Geronimo's great-grandson demanded the skull's return, the Skull and Bones society refused. 74 00:08:35,340 --> 00:08:40,250 „You both were members of Skull and Bones, the secret society in Yale. What does that tell us?“ 75 00:08:40,250 --> 00:08:43,740 „Uh, not much, 'cause it's a secret.“ (laughter) 76 00:08:43,740 --> 00:08:46,140 „Is there a secret handshake, is there a secret code?“ 77 00:08:46,140 --> 00:08:49,000 „I wish there were something secret I could manifest.“ 78 00:08:49,540 --> 00:08:54,770 I think the role of most of the secret societies like Skull and Bones, they have histories, as I say, 79 00:08:54,770 --> 00:08:58,220 terms of the splits within the class and also class hegemony. 80 00:08:58,770 --> 00:09:02,970 I think when you recruit people and you get them to do something illegal, 81 00:09:03,910 --> 00:09:06,880 it's similar to what the Mafia does to implicate somebody. 82 00:09:06,880 --> 00:09:14,570 The Skull and Bones picks each year have to go and dig someone up out of a grave and commit a criminal act. 83 00:09:14,570 --> 00:09:20,910 They are required in their initiation to admit to criminal acts that they've been part of, or sexual acts they've been part of. 84 00:09:20,910 --> 00:09:26,480 I think it's more that the class uses these secret groups in order to get loyalty 85 00:09:27,340 --> 00:09:33,340 and to control the coming generations and other participants in the class operations, 86 00:09:33,510 --> 00:09:37,280 rather than the other way around, that there is 15 people running the world. 87 00:09:38,170 --> 00:09:42,480 They do put those people once they're chosen into positions of power, 88 00:09:43,050 --> 00:09:47,170 and that kind of choosing goes on with or without the secret societies 89 00:09:48,850 --> 00:09:53,110 and you get a concentration of power and decision making into a very few hands 90 00:09:53,740 --> 00:09:57,770 whether or not they are inter-related that way. 91 00:09:59,880 --> 00:10:04,650 The culture of the secret society would find a parallel in the new intelligence agency. 92 00:10:05,940 --> 00:10:09,080 Internally, it was known as „The Company“. 93 00:10:14,910 --> 00:10:20,940 Within just a few years, it would become one of the most powerful institutions in the American government. 94 00:10:23,280 --> 00:10:29,510 Just as Eisenhower would later warn of the military-industrial complex, that he himself had helped to create, 95 00:10:29,510 --> 00:10:34,170 Truman would voice alarm over the evolution of the Central Intelligence Agency. 96 00:10:34,910 --> 00:10:40,000 He came to not only regret it, but to speak out about it. 97 00:10:40,000 --> 00:10:45,570 In 1963, 30 days to the day after the assassination of John F. Kennedy, 98 00:10:45,970 --> 00:10:51,800 Truman actually wrote an op-ed that was published in The Washington Post in which he revealed this, and he said: 99 00:10:51,800 --> 00:10:55,420 „I never intended for it to become what it has become“. 100 00:10:55,540 --> 00:11:01,250 This is very interesting because that op-ed appeared in the early edition of The Washington Post 101 00:11:01,250 --> 00:11:04,770 and then it was excised from all the later editions that day. 102 00:11:05,110 --> 00:11:11,850 Allan Dulles, perhaps the most important of the CIA directors flew out to Independence, Missouri 103 00:11:11,850 --> 00:11:15,880 to try to get Truman to retract what he had written, and he refused. 104 00:11:37,280 --> 00:11:41,510 What you find really is that captors have made the state, in a way, a sight of struggle 105 00:11:42,340 --> 00:11:48,340 between the public and the formal institutions of democracy 106 00:11:48,340 --> 00:11:48,370 which legitimized the existence of capitalism. between the public and the formal institutions of democracy 107 00:11:48,370 --> 00:11:52,220 which legitimized the existence of capitalism. 108 00:11:53,250 --> 00:11:59,710 The reality, that actually, in many ways, this was a very undemocratic system 109 00:11:59,770 --> 00:12:03,420 that wasn't working in the interest of the majority of the population. 110 00:12:03,740 --> 00:12:07,280 So there was this constant tension inherent to capitalism between 111 00:12:07,600 --> 00:12:11,480 this hierarchical centralized elitist dynamic 112 00:12:12,050 --> 00:12:15,020 and this need to legitimize itself and to say: 113 00:12:15,020 --> 00:12:19,200 "No, but we are free, we are democratic and we do have these formal institutions." 114 00:12:19,710 --> 00:12:24,970 So, on the one hand that required this discourse of humanitarian interventionism 115 00:12:25,170 --> 00:12:27,400 and doing it for the benefit of the public good, 116 00:12:27,820 --> 00:12:37,850 but it also institutionalized this new dynamic where covert action would also be much more, kind of interesting 117 00:12:37,850 --> 00:12:41,570 as a way of doing things, because, again, the public wouldn't be aware of it. 118 00:12:47,820 --> 00:12:52,540 At the same time the OPC became operational, the National Security Council 119 00:12:52,540 --> 00:12:55,170 approved a radical new policy. 120 00:12:56,480 --> 00:13:01,880 It secretly authorized the CIA to conduct programs which were officially nonexistent, 121 00:13:02,050 --> 00:13:05,020 thereby passing the US Congress. 122 00:13:07,940 --> 00:13:12,510 The NSC ordered that the new operations be deniable, meaning: 123 00:13:26,710 --> 00:13:31,740 Here, one of the CIA's first covert operators, Kermit Roosevelt, 124 00:13:32,110 --> 00:13:37,250 discusses plausible deniability in connection with the 1954 US coup 125 00:13:37,250 --> 00:13:40,370 the democratically elected government of Iran: 126 00:13:40,970 --> 00:13:46,170 „There was some discussion, and first of those went around the table, 127 00:13:46,170 --> 00:13:48,850 and the only person on the State Department's side 128 00:13:48,910 --> 00:13:55,140 whom I can remember that has taken any kind of specific position was ambassador Henderson 129 00:13:56,370 --> 00:14:02,000 who was back for this meeting. He said that he wanted to know none of the details. 130 00:14:02,420 --> 00:14:07,570 He felt this was a considerable departure from diplomatic tradition, 131 00:14:07,570 --> 00:14:11,940 but he felt it was required by the situation. He wanted to approve it, 132 00:14:11,940 --> 00:14:15,200 and he wanted to know as little about it as possible.“ 133 00:14:23,800 --> 00:14:27,770 “...allow union infiltrators sufficient lead time.” 134 00:14:28,680 --> 00:14:31,820 Union infiltrators? 135 00:14:33,020 --> 00:14:39,570 “Though CIA exposure seems unlikely, standard program of denial of involvement is recommended.” 136 00:14:44,420 --> 00:14:48,450 Standard program of denial recommended. 137 00:14:49,420 --> 00:14:53,820 "I made a very deliberate decision not to ask the president 138 00:14:54,650 --> 00:14:58,000 so that I could insulate him from the decision 139 00:14:58,420 --> 00:15:03,200 and provide some future deniability for the president, if it ever leaked out." 140 00:15:03,600 --> 00:15:08,480 But there was no denying that the president's men knew what was in the president's mind. 141 00:15:08,480 --> 00:15:10,800 "He had been very adamant 142 00:15:11,710 --> 00:15:15,310 at the time, that he says: 'Look, I don't want to pull out 143 00:15:16,080 --> 00:15:21,050 our support for the Contras for any reason. This would be an unacceptable option.’ 144 00:15:21,770 --> 00:15:24,310 Isn’t there something that I could do unilaterally?” 145 00:15:24,740 --> 00:15:28,800 Unilaterally - in other words - without Congressional approval. 146 00:15:49,110 --> 00:15:58,910 This is a T-shirt, I got it here in Washington at one of those outdoor kiosks, and it says: 147 00:15:59,800 --> 00:16:04,570 “Admit nothing. Deny everything. Make counter accusations.” 148 00:16:05,280 --> 00:16:08,800 And that's really what plausible deniability is about. 149 00:16:08,800 --> 00:16:13,110 Plausible deniability gives the people at the top of these agencies, 150 00:16:13,110 --> 00:16:19,880 and most particularly the political leadership of the country, which gives orders to these agencies, 151 00:16:19,880 --> 00:16:27,600 the opportunity to disavow what has in fact been carried out on the basis of orders that come from the president. 152 00:16:27,850 --> 00:16:32,310 The people on the ground in El Salvador, for example, 153 00:16:32,310 --> 00:16:40,280 they know darn well that death squads (I'm talking about in the 1980s) infest the country, 154 00:16:40,280 --> 00:16:44,250 and that thousands, and even tens of thousands of people are being killed by these death squads. 155 00:16:44,250 --> 00:16:47,370 See, you can’t hide that reality. 156 00:16:47,370 --> 00:16:52,000 The people in Washington, in Congress, for example, 157 00:16:53,400 --> 00:16:59,570 they are told that there is no association 158 00:16:59,800 --> 00:17:03,080 between the US government and the death squads. 159 00:17:03,080 --> 00:17:08,740 And in fact, here’s a press release, Mr. Congressman, that deplores the death squads. 160 00:17:09,000 --> 00:17:13,770 The way that that can be done is if there is a disjuncture, 161 00:17:13,770 --> 00:17:19,880 a compartmentalization between the CIA and the military-intelligence role in these death squads, 162 00:17:19,880 --> 00:17:27,050 which we now know to be factual, and their higher-ups in the chain of command. 163 00:17:33,200 --> 00:17:38,280 Now, what was the role of the people down here? Well, that was a little more complicated. 164 00:17:38,280 --> 00:17:45,220 What the US military advisers do is to teach the people in the country 165 00:17:45,220 --> 00:17:50,170 how to organize themselves and how to carry out missions 166 00:17:50,170 --> 00:17:52,820 and how to keep their mouths shut about missions, 167 00:17:52,820 --> 00:17:56,510 and how the be more “professional” 168 00:17:56,510 --> 00:18:03,800 in the jobs that the indigenous troops want to carry out anyway. 169 00:18:03,940 --> 00:18:10,140 It wasn’t quite that the American advisers said 170 00:18:10,140 --> 00:18:14,280 “Thou shall create a death squad, and you’re gonna report to me.” 171 00:18:14,450 --> 00:18:18,450 No. What they said was: “Here’s how to organize yourself, 172 00:18:18,450 --> 00:18:23,450 to conduct missions, and don’t report to me. 'Cause I don’t wanna know.” 173 00:18:24,400 --> 00:18:25,510 That’s how it’s done. 174 00:18:26,200 --> 00:18:30,710 And then, back in Washington, the guys who 175 00:18:30,710 --> 00:18:32,710 - or women too, certainly - 176 00:18:32,970 --> 00:18:38,880 who are in charge of managing these little units, these paramilitary units around the world, 177 00:18:39,340 --> 00:18:41,340 they're saying basically the same thing: 178 00:18:41,510 --> 00:18:46,820 “Go take care of business in El Salvador, and don’t tell me about it. Cause I don’t wanna know.” 179 00:18:46,970 --> 00:18:49,820 We don't talk about those things in this house, do we? 180 00:18:49,820 --> 00:18:52,820 No, it's too elegant, too respectable. 181 00:18:53,140 --> 00:18:57,480 Nice kids - party - painting of Mama up there on the wall. 182 00:18:58,220 --> 00:19:00,200 No place for a stinkin' cop! 183 00:19:00,570 --> 00:19:04,420 It's only a place for a hoodlum who built this house out of twenty years of corruption and murder. 184 00:19:04,420 --> 00:19:05,480 I'm gonna tell you something. 185 00:19:05,600 --> 00:19:09,250 You know, you couldn't plant enough flowers around here to kill the smell. 186 00:19:09,770 --> 00:19:14,820 It was an attack on the whole integrity of government. If whole file cabinets can be stolen 187 00:19:14,820 --> 00:19:18,820 and made available to the press, you can't have order in the government anymore. (Henry Kissinger) 188 00:19:19,400 --> 00:19:24,050 “A name has now come out as a possible source of the Times’ Pentagon Documents. 189 00:19:24,050 --> 00:19:29,200 It is that of Daniel Ellsberg, top policy analyst for the Defense and State Department.” 190 00:19:29,200 --> 00:19:34,140 I think it is time in this country to quit making national heroes 191 00:19:34,140 --> 00:19:39,000 out of those who steal secrets and publish them in the newspaper.“ 192 00:19:39,910 --> 00:19:44,200 He became a household name overnight. Daniel Ellsberg, 193 00:19:44,340 --> 00:19:49,540 a high ranking Pentagon official, leaked a treasure trove of secret documents to The New York Times. 194 00:19:50,570 --> 00:19:55,310 The publication of The Pentagon Papers seemed to affirm a widely held view: 195 00:19:55,850 --> 00:20:00,050 no matter how hard you try, you can not keep secrets in Washington. 196 00:20:01,280 --> 00:20:06,110 „The very word secrecy is repugnant in a free and open society“ 197 00:20:06,370 --> 00:20:09,250 Yet Ellsberg himself has a radically different take. 198 00:20:09,400 --> 00:20:17,620 He states that the myth of transparency is: 199 00:20:40,910 --> 00:20:45,540 One of the most remarkable demonstrations of this capability was The Manhattan Project, 200 00:20:45,620 --> 00:20:50,200 the gargantuan construction effort responsible for producing the atomic bomb. 201 00:20:50,880 --> 00:20:55,450 Though it involved hundreds of thousands of people, not even then Vice-president Harry Truman 202 00:20:55,600 --> 00:21:01,800 became aware of its existence, until assuming the top command after the death of Franklin Roosevelt. 203 00:21:02,710 --> 00:21:04,250 How is this possible? 204 00:21:05,770 --> 00:21:10,280 Part of the answer lies in the concept of compartmentalization. 205 00:21:24,400 --> 00:21:30,800 It's very important to recognize that military intelligence is not a monolithic structure. 206 00:21:30,800 --> 00:21:34,170 It's a set of different institutions; bureaucratic, 207 00:21:34,850 --> 00:21:38,400 different agencies are assigned different tasks. 208 00:21:38,650 --> 00:21:44,510 It's precisely because of this bureaucratic compartmentalization and this military hierarchy 209 00:21:45,050 --> 00:21:51,020 that different agencies would not know what other agencies have done, in fact this is how it operates. 210 00:21:51,540 --> 00:21:57,420 A particular agency may be given a task to perform a particular component of an operation. 211 00:21:57,800 --> 00:22:00,970 But there is this concept of need-to-know, 212 00:22:01,080 --> 00:22:06,140 so for example the agency may order, even the subsection of the agency, or a division of the agency 213 00:22:06,310 --> 00:22:11,340 or a cell operated by the agency may on a need-to-know basis understand 214 00:22:11,600 --> 00:22:16,000 what they need to do as a specific component of the operation. 215 00:22:16,000 --> 00:22:21,020 They may know that they need to travel somewhere and plant a device, 216 00:22:21,020 --> 00:22:24,850 or go somewhere and do surveillance of somebody, 217 00:22:25,050 --> 00:22:27,480 but they do not necessarily know why they are doing that 218 00:22:27,480 --> 00:22:31,510 or the context of what the strategic purpose is, or anything else at all. 219 00:22:31,710 --> 00:22:38,450 The purpose of this is to ensure that operations are kept classified and the information remains secret, 220 00:22:38,620 --> 00:22:43,000 that it's not subject to being leaked to the public, 221 00:22:43,000 --> 00:22:47,370 that it's not subject to over-scrutiny from the public,or from 222 00:22:47,370 --> 00:22:50,420 publicly nominated institutions of the government. 223 00:22:50,570 --> 00:22:54,200 Okay, that sounds logical on some levels, 224 00:22:54,200 --> 00:22:58,910 it has the effect of creating compartments 225 00:22:59,250 --> 00:23:03,310 in which particular operations are carried out. 226 00:23:05,910 --> 00:23:11,170 These operations, on the one hand, may have very significant effects. 227 00:23:11,600 --> 00:23:14,680 I mean, that's the whole point of having an operation, right? 228 00:23:14,800 --> 00:23:19,310 But, what the effects are, the existence of the operation, 229 00:23:19,310 --> 00:23:24,310 the responsibility for it, and so forth, 230 00:23:24,310 --> 00:23:28,080 is secret even within the CIA. 231 00:23:28,740 --> 00:23:32,680 You know, the entire career that I spent in the CIA, 232 00:23:32,850 --> 00:23:36,510 I was in the analysis half of the CIA. 233 00:23:37,020 --> 00:23:43,000 The other half being the operational half, or, you could call it the “dirty tricks” half, you could call it 234 00:23:43,200 --> 00:23:49,820 just the half that did things, rather than only talked about things and wrote about things. 235 00:23:49,970 --> 00:23:52,800 I was in the analytical half of the agency. 236 00:23:53,800 --> 00:23:57,850 Very rarely did people in the analytical half get overseas at all, 237 00:23:58,370 --> 00:24:03,680 but I had two lengthy tours overseas: the 1950s for three years in Germany 238 00:24:03,970 --> 00:24:12,800 and in the late 1960s, early 1970s for two and a half years in Vietnam. 239 00:24:12,940 --> 00:24:18,420 If you just stayed in Washington as an analyst for the CIA, 240 00:24:18,420 --> 00:24:27,740 you really were, pretty fully compartmentalized away from operational work done in the agency. 241 00:24:28,510 --> 00:24:35,910 You did not have a need to know and the discipline in the agency was pretty darn good. 242 00:24:36,370 --> 00:24:40,940 Like most bureaucracies there's tension between the people at the top of the organization 243 00:24:40,940 --> 00:24:45,800 and those further down the line. The compartmentalization, 244 00:24:46,250 --> 00:24:50,570 in some instances, creates a means 245 00:24:50,570 --> 00:24:55,540 for different political factions to write their own foreign policy. 246 00:24:55,600 --> 00:24:58,620 One of the reasons we have trouble understanding 247 00:24:58,970 --> 00:25:04,220 how things actually happen behind the scenes is because of compartmentalization. 248 00:25:04,940 --> 00:25:11,020 Compartmentalization is inherent to intelligence organizations. 249 00:25:11,020 --> 00:25:16,820 And so even within a very secret operation there are many more secret levels, 250 00:25:16,820 --> 00:25:21,310 there are many more cells, competing factions and what-have-you, 251 00:25:21,310 --> 00:25:28,200 and there are fascinating stories for example, about how OPC (Office of Policy Coordination), 252 00:25:28,200 --> 00:25:34,020 which really became the hub of the covert operations the CIA would do all over the world. 253 00:25:34,020 --> 00:25:38,250 Very often we had situations where the CIA was investigating something, 254 00:25:38,250 --> 00:25:42,800 and OPC was actually doing something and hiding it from the rest of CIA 255 00:25:42,800 --> 00:25:47,280 and putting false material into the files to prevent discovery. 256 00:25:47,420 --> 00:25:51,250 This is very complex, very deep, very profound material. 257 00:25:51,250 --> 00:25:54,200 It's something we need to do much, much more research on. 258 00:25:55,110 --> 00:26:02,340 An important compartment of the US intelligence bureaucracy is the NGO (Non Governmental Organization). 259 00:26:03,140 --> 00:26:06,650 The majority of these groups, American or otherwise, 260 00:26:06,650 --> 00:26:11,820 are exactly as advertised. Organizations set up independently of the State. 261 00:26:12,220 --> 00:26:14,820 But not all NGOs live up to their title. 262 00:26:16,000 --> 00:26:21,970 Like the traditional front company, a seemingly legitimate business run and staffed by criminals or spies, 263 00:26:22,140 --> 00:26:28,650 some NGOs have been revealed to be thinly veiled outgrowths of government agencies, including the CIA. 264 00:26:31,970 --> 00:26:37,340 "The key to CIA's current troubles is that unique American institution, 265 00:26:38,000 --> 00:26:39,800 the tax-free foundation. 266 00:26:41,850 --> 00:26:43,220 Here's what happened: 267 00:26:43,510 --> 00:26:51,000 first, CIA itself set up a number of dummy foundations calling them by impressive-sounding, if meaningless names. 268 00:26:51,280 --> 00:26:56,620 Their sole function was to channel money from the CIA to a second kind of foundation. 269 00:26:57,050 --> 00:26:58,800 Now, these foundations were real. 270 00:26:59,220 --> 00:27:03,170 Some obscure, some well-known, all involved in legitimate philanthropy. 271 00:27:03,170 --> 00:27:04,340 But now, in addition, 272 00:27:04,680 --> 00:27:09,480 they agreed to become conduits for Central Intelligence, mixing up the government money with their own 273 00:27:09,940 --> 00:27:13,540 and then passing it on to the ever growing list of private organizations, 274 00:27:13,540 --> 00:27:15,540 which during the 40s, 50s and 60s, 275 00:27:15,710 --> 00:27:18,280 were climbing on board of the CIA payroll. 276 00:27:19,020 --> 00:27:25,220 Let's take a closer look at those legitimate foundations which became CIA payout agencies. 277 00:27:25,450 --> 00:27:28,620 They are among the 15,000 charitable funds 278 00:27:28,820 --> 00:27:33,050 that have sprung up in America in response, partly, to the social consciences of the rich, 279 00:27:33,140 --> 00:27:35,370 partly to the structure of our tax laws. 280 00:27:36,000 --> 00:27:39,540 They are the operative arms of what has come to be called the American establishment, 281 00:27:39,540 --> 00:27:43,370 the power structure of moneyed families, august law firms, 282 00:27:43,620 --> 00:27:49,800 prestigious universities, which have had so much influence in shaping American life and national policies since WWII. 283 00:27:50,310 --> 00:27:56,850 CBS newsman Norman Glubock reports on some of the foundations which channeled money for the CIA." 284 00:27:58,200 --> 00:28:01,220 "This building is 73 Fremont Street in Austin. 285 00:28:01,510 --> 00:28:05,110 Just under its windows lies the historic old Granary Burial Ground, 286 00:28:05,220 --> 00:28:09,280 last resting place of such revolutionary patriots as Samuel Adams and Paul Revere. 287 00:28:14,020 --> 00:28:20,000 The building directory doesn't list it, but tax reports of the Granary Fund show its home in room 329, 288 00:28:20,310 --> 00:28:23,200 which turns out to be the law firm of Hemenway & Barnes. 289 00:28:24,050 --> 00:28:27,710 No one there would talk before CBS news cameras about the Granary Fund, 290 00:28:27,940 --> 00:28:31,250 a reticence which is proved universal among the foundations. 291 00:28:31,940 --> 00:28:34,740 But Granary Fund reports were signed George H. Kidder. 292 00:28:35,250 --> 00:28:37,450 Mr Kidder is listed in Who's who in America. 293 00:28:37,800 --> 00:28:42,020 Among his former associations, the initials: CIA.“ 294 00:28:44,140 --> 00:28:48,000 …is the CIA going around behind the scenes and trying to manipulate the 295 00:28:48,000 --> 00:28:51,510 process secretly by inserting money here and instructions there, and so forth. 296 00:28:52,050 --> 00:28:53,540 They have now a sidekick, 297 00:28:53,970 --> 00:28:56,280 which is this National Endowment for Democracy. 298 00:28:56,280 --> 00:28:58,280 Good morning and welcome. 299 00:28:59,400 --> 00:29:06,000 It's good to have you all here to help celebrate the launching of a program with a vision and a noble purpose. 300 00:29:06,680 --> 00:29:11,110 The National Endowment for Democracy is just as we've been told, 301 00:29:11,400 --> 00:29:12,910 more than bi-partisan. 302 00:29:12,910 --> 00:29:15,450 The establishment of the National Endowment 303 00:29:15,740 --> 00:29:19,740 goes right to the heart of America's faith in democratic ideals and institutions. 304 00:29:22,170 --> 00:29:28,450 The attempt at 2002 coup against leftist leader Hugo Chavez in the oil-rich nation of Venezuela 305 00:29:28,910 --> 00:29:31,540 reveals the pseudo NGO at work. 306 00:29:45,310 --> 00:29:48,970 Venezuela is important because they're the third largest supplier of petroleum. 307 00:29:49,740 --> 00:29:55,250 I would say that Mr. Chavez - and the State Department may say this - 308 00:29:55,250 --> 00:29:58,050 probably doesn't have the interest of the United States at heart. 309 00:29:58,570 --> 00:30:03,800 During the coup attempt, the Bush administration immediately voiced support for the plotters. 310 00:30:04,510 --> 00:30:08,880 „The Bush administration made it clear that it's happy with the change in leadership 311 00:30:08,880 --> 00:30:13,570 in the country responsible for 15% of America's oil imports.“ 312 00:30:13,850 --> 00:30:19,000 Initially, many observers attributed this support to an ideological affinity 313 00:30:19,000 --> 00:30:21,770 between the coup faction and the Bush administration. 314 00:30:23,110 --> 00:30:29,510 However, it soon became apparent that the coup was actually sponsored by the US itself. 315 00:30:31,250 --> 00:30:37,800 The National Endowment for Democracy had funneled millions of dollars to Venezuelan dissident groups and politicians, 316 00:30:38,250 --> 00:30:41,970 many of whom took up cabinet positions in the short-lived government. 317 00:30:43,080 --> 00:30:48,770 In the media, an illusion was conjured of a popular uprising and government crackdown. 318 00:30:49,510 --> 00:30:54,140 In reality, Chavez had the support of the vast majority of the population. 319 00:30:54,600 --> 00:30:59,450 This was soon made apparent when an actual uprising arose in response to the coup, 320 00:31:00,370 --> 00:31:04,540 forcing the Venezuelan military to reinstate the deposed leader. 321 00:31:12,850 --> 00:31:19,400 That the CIA has overthrown countless governments around the world, is no longer a closely held secret. 322 00:31:20,310 --> 00:31:26,600 What is less known, is that its agents have engaged in similar plots against America's closest allies. 323 00:31:28,450 --> 00:31:36,340 According to the CIA's charter, agents can not engage in secret operations of any kind, within the countries of the UK, 324 00:31:36,600 --> 00:31:43,880 Australia, Canada and New Zealand without the explicit prior approval of the host government. 325 00:31:44,310 --> 00:31:47,680 Yet not even this most basic tenet has been upheld. 326 00:31:47,850 --> 00:31:52,250 The coup against Gough Whitlam's labor government in Australia, 1972, 327 00:31:52,250 --> 00:31:58,000 exposes a wide variety of dirty tricks used by intelligence agencies to undermine democracy. 328 00:31:58,200 --> 00:32:00,480 „We will not yield to blackmail. 329 00:32:00,850 --> 00:32:02,740 We will not be panicked. 330 00:32:03,200 --> 00:32:06,080 We will not turn over the government of this country 331 00:32:06,370 --> 00:32:09,050 to vested interests, pressure groups, 332 00:32:09,310 --> 00:32:15,800 and newspaper proprietors whose tactics would destroy the standards and traditions of parliamentary government.“ 333 00:32:28,600 --> 00:32:34,600 In Australia, 1972, a labor government was elected for the first time in 23 years. 334 00:32:35,420 --> 00:32:40,370 It would be brought down in a de-facto coup d'etat conducted by the CIA 335 00:32:40,650 --> 00:32:44,820 in liaison with the Britain's MI6, and most shockingly, 336 00:32:44,820 --> 00:32:47,650 Australia's own intelligence services. 337 00:32:48,820 --> 00:32:52,650 Since assuming power in Australia, Whitlam's labor government 338 00:32:52,770 --> 00:32:55,200 had enacted a series of reforms. 339 00:32:56,450 --> 00:33:01,280 These included: raises in wages, pensions and unemployment benefits, 340 00:33:01,400 --> 00:33:05,140 free national health care, equal pay for women, 341 00:33:05,420 --> 00:33:10,170 the abolishment of tuition fees, news services for Aboriginal peoples, 342 00:33:10,770 --> 00:33:15,650 and the replacement of God Save the Queen with Australia's own national anthem. 343 00:33:16,850 --> 00:33:18,910 Most disturbing to Washington, however, 344 00:33:19,220 --> 00:33:22,480 was the withdrawal of the Australian troops from Vietnam, 345 00:33:24,250 --> 00:33:26,310 the support of Palestinian rights 346 00:33:28,020 --> 00:33:31,000 and the proposal of the Indian Ocean zone of peace. 347 00:33:33,340 --> 00:33:40,620 Worst of all, Whitlam hinted that he may shut down a number of American military bases, including Pine Gap. 348 00:33:41,480 --> 00:33:46,400 But CIA director William Colby petitioned his counterpart at MI6, 349 00:33:46,400 --> 00:33:48,770 Sir Maurice Oldfield for help. 350 00:33:48,770 --> 00:33:52,220 He stressed that Australia was traditionally Britain's domain, 351 00:33:52,480 --> 00:33:57,370 and that if Pine Gap were closed, the alliance would be blinded strategically. 352 00:33:59,200 --> 00:34:04,570 Unbeknownst to Australia's new Prime Minister, the Australian Security Intelligence Organization, 353 00:34:04,800 --> 00:34:07,650 had not only been working closely with the CIA, 354 00:34:07,880 --> 00:34:12,770 they have been illegally passing on dossiers concerning every member of the Labor Party, 355 00:34:13,220 --> 00:34:18,200 as well as union leaders, peace activists and other Australian citizens. 356 00:34:19,480 --> 00:34:26,420 A slush fund was set up to provide money to both opposition parties via the Nugen Hand Bank, a CIA front company. 357 00:34:26,800 --> 00:34:32,340 This was followed up by a promise to the main opposition Liberal Party of unlimited funds. 358 00:34:32,510 --> 00:34:34,940 "In recent years there have been charges from time to time, 359 00:34:34,940 --> 00:34:38,140 that the CIA has involved itself in illegal activities. 360 00:34:38,140 --> 00:34:42,650 Some of the most bizarre to date involve a bank in Australia known as the Nugen Hand, 361 00:34:42,650 --> 00:34:44,510 and tonight Gary Shepherd has a report." 362 00:34:45,970 --> 00:34:50,020 "When the Nugen Hand bank of Sydney, Australia collapsed in 1980, 363 00:34:50,020 --> 00:34:53,420 it appeared at first glance to be just another bank failure, 364 00:34:53,650 --> 00:34:57,140 but after Australian authorities began taking a closer look, 365 00:34:57,140 --> 00:35:02,740 they discovered a tangled web of intrigue, with all the elements of a best-selling spy novel. 366 00:35:02,800 --> 00:35:06,650 A mysterious death, the body later dug-up from its grave, 367 00:35:06,800 --> 00:35:10,540 illegal currency transactions, big time drug operations, 368 00:35:10,540 --> 00:35:13,310 and the Central Intelligence Agency. 369 00:35:13,540 --> 00:35:18,650 'We were to become the paymasters for the CIA around the world. 370 00:35:18,650 --> 00:35:22,770 In other words, we were putting ourselves into position to 371 00:35:23,400 --> 00:35:26,850 disperse funds for the CIA 372 00:35:26,850 --> 00:35:29,050 to whoever they were directed.' 373 00:35:29,050 --> 00:35:37,480 Former bank executive Neil Evans, given immunity from prosecution, agreed to talk about the Nugen Hand operation on Australian television. 374 00:35:37,680 --> 00:35:42,170 From his account and others, the bank had its genesis during the Vietnam War. 375 00:35:42,450 --> 00:35:46,770 Four of the original stockholders were Americans who listed their addresses as: 376 00:35:46,770 --> 00:35:50,050 Air America, Army Post Office, San Francisco. 377 00:35:50,370 --> 00:35:53,680 Air America was the CIA airline in Indochina, 378 00:35:53,880 --> 00:35:56,940 hauling men and supplies on clandestine missions, 379 00:35:57,250 --> 00:36:00,620 and according to former CIA agents, even drugs, 380 00:36:00,620 --> 00:36:02,680 out of the so called golden triangle, 381 00:36:02,910 --> 00:36:06,450 where the borders of Burma, Laos and Thailand converge. 382 00:36:07,340 --> 00:36:13,140 Nugen Hand sent Neil Evans to the Thai city of Chiang Mai, the commercial center of the drug trade. 383 00:36:13,400 --> 00:36:19,200 He claims that CIA made millions and used the money to finance some of its secret projects. 384 00:36:20,000 --> 00:36:27,620 'The idea was that money would be deposited with the Nugen Hand bank by the CIA 385 00:36:28,020 --> 00:36:33,110 through various channels, and also that the Nugen Hand bank would be 386 00:36:33,110 --> 00:36:41,600 the repository for funds coming in from various CIA enterprises, 387 00:36:41,650 --> 00:36:44,740 namely drugs in Thailand, marijuana in particular. 388 00:36:47,020 --> 00:36:51,510 The Nugen Hand bank would then be responsible for re-routing that money 389 00:36:51,510 --> 00:36:55,080 to an account in America, with the New York Bank.' 390 00:36:55,200 --> 00:36:59,820 Nugen Hand was not your ordinary bank. There were secret numbered accounts, 391 00:36:59,820 --> 00:37:02,400 and hardly any of its top people were bankers. 392 00:37:02,620 --> 00:37:09,110 Many were American civilians and former high-ranking military officers with ties to US intelligence. 393 00:37:09,620 --> 00:37:13,850 When they found the body of Australian businessman Frank Nugen, the bank's chairman, 394 00:37:13,850 --> 00:37:18,220 shot to death a few months before the bank went under, they discovered in his pocket 395 00:37:18,400 --> 00:37:20,510 the business card of this man: 396 00:37:20,620 --> 00:37:23,710 William Colby, former director of the CIA. 397 00:37:24,200 --> 00:37:27,880 Nugen's partner was Michael Hand, an American green beret, 398 00:37:28,000 --> 00:37:32,710 who served two tours in Vietnam, one of them for the CIA. 399 00:37:33,050 --> 00:37:37,370 He disappeared a short while after the bank collapsed, and is now believed to be dead. 400 00:37:37,850 --> 00:37:41,370 Australian newspapers reported a connection between Nugen Hand 401 00:37:41,370 --> 00:37:46,650 and the US navy's super secret intelligence unit, known as Task Force 157. 402 00:37:47,050 --> 00:37:50,480 Among its top agents, CIA man Edwin Wilson, 403 00:37:50,570 --> 00:37:55,770 now under indictment for selling arms and explosives to Libyan dictator Muammar Gaddafi. 404 00:37:56,080 --> 00:37:59,480 And a man named Patry E Loomis has also been implicated. 405 00:37:59,620 --> 00:38:02,800 He was the apparent CIA-Nugen Hand go-between. 406 00:38:02,800 --> 00:38:08,650 It was Loomis who helped Wilson recruit a team of green berets to train terrorists in Libya. 407 00:38:09,250 --> 00:38:14,740 The Nugen Hand affair has caused an uproar in Australia where authorities are trying to find out what involvement 408 00:38:14,740 --> 00:38:19,310 the bank might've had in the 1975 downfall of the Labor Party government. 409 00:38:19,680 --> 00:38:24,310 Meanwhile, investigators on three continents are attempting to trace 15 million dollars 410 00:38:24,420 --> 00:38:28,020 missing from the accounts of depositors, including many Americans. 411 00:38:28,340 --> 00:38:33,280 Here in this country, the CIA denies any involvement with drug operations in Indochina, 412 00:38:33,480 --> 00:38:37,370 the Nugen Hand bank itself or the deaths of two men who ran it. 413 00:38:37,770 --> 00:38:40,540 Gary Shepherd for CBS news, Los Angeles." 414 00:38:42,080 --> 00:38:47,000 In addition to the slush fund, the CIA created a series of forged documents 415 00:38:47,000 --> 00:38:51,880 implicating high-ranking members of the Labor Party in succession of scandals. 416 00:38:53,370 --> 00:38:57,820 No hard evidence was ever produced to substantiate the allegations, 417 00:38:58,000 --> 00:39:04,340 but a complicit Australian media, spearheaded by a young Rupert Murdoch, fanned the flames of discontent. 418 00:39:07,280 --> 00:39:12,820 "Do you think the newspaper will have any political orientation, like The Sun and its predecessor, The Daily Herald?" 419 00:39:13,510 --> 00:39:19,340 "No, no, no fixture orientation in a sense to be allied to any party, certainly not, it will be quite independent." 420 00:39:19,650 --> 00:39:24,910 One of the most damaging of the forgeries was a report indicating that the Labor ministers 421 00:39:24,910 --> 00:39:28,220 have received kickbacks during the so-called "loans affair". 422 00:39:28,940 --> 00:39:33,480 In 1981, a CIA contract agent named Joseph Flynn 423 00:39:33,620 --> 00:39:37,740 admitted that he had forged these documents at the behest of Michael Hand, 424 00:39:38,480 --> 00:39:41,850 co-founder of the CIA's Nugen Hand bank. 425 00:39:43,510 --> 00:39:47,740 As the contrived scandals escalated, a state of emergency was declared. 426 00:39:49,220 --> 00:39:55,020 Invoking the authority of the British crown, attorney-general John Carr dismissed Whitlum as Prime Minister. 427 00:42:16,880 --> 00:42:22,820 When compared to many other leaders targeted by the CIA, Whitlum and Wilson got off easy. 428 00:42:23,940 --> 00:42:28,340 The CIA attempted to assassinate several dozen leaders during the Cold War. 429 00:42:28,970 --> 00:42:30,880 Often times, they succeeded. 430 00:42:56,420 --> 00:42:58,450 "This is Fort Detrick, Maryland. 431 00:42:58,620 --> 00:43:03,820 This once secret facility was home to CIA experiments with drugs like LSD. 432 00:43:04,340 --> 00:43:08,740 It was also an armory for the agencies executive action capability. 433 00:43:09,020 --> 00:43:14,600 A program begun under the Eisenhower administration for disposing of unwanted foreign leaders. 434 00:43:15,080 --> 00:43:19,400 Some of the plots called for lethal poisons that were manufactured here. 435 00:43:21,910 --> 00:43:26,400 Dr. Everett Hanel, a microbiologists at Fort Detrick for three decades, 436 00:43:26,540 --> 00:43:28,820 worked in association with the CIA. 437 00:43:30,000 --> 00:43:34,710 'These are what we call Class 3 cabinet systems, they are gas-type systems 438 00:43:34,740 --> 00:43:40,820 for working with almost complete safety with any infectious diseases, toxins. 439 00:43:40,820 --> 00:43:45,770 Things such as the shellfish toxin, which is very toxic indeed, 440 00:43:45,770 --> 00:43:50,970 particularly when highly purified and I understand that these could be 441 00:43:50,970 --> 00:43:55,420 placed on steel needles and fired with air guns 442 00:43:55,420 --> 00:44:00,280 into an animal and induce death almost immediately. 443 00:44:00,280 --> 00:44:06,770 So they were apparently a very effective, or could be, a very effective type of covert weapon.' 444 00:44:08,450 --> 00:44:12,110 Among the most disturbing CIA documents from the Cold War period 445 00:44:12,280 --> 00:44:15,400 is the agency's How to guide on assassination. 446 00:44:16,400 --> 00:44:20,650 Beginning with the ironic disclaimer that murder is not morally justifiable, 447 00:44:21,370 --> 00:44:22,570 it goes on to state: 448 00:44:34,970 --> 00:44:38,370 From there, the guide highlights potential methods. 449 00:44:42,850 --> 00:44:45,710 The simplest local tools are often the most efficient. 450 00:44:46,370 --> 00:44:47,020 A hammer. 451 00:44:47,420 --> 00:44:48,820 A screwdriver. 452 00:44:50,250 --> 00:44:51,280 A fire poker. 453 00:44:52,540 --> 00:44:53,650 A kitchen knife. 454 00:44:55,450 --> 00:44:59,570 A lamp stand, or anything hard, heavy and handy will suffice. 455 00:45:00,800 --> 00:45:05,770 A length of rope, or a wire or a belt will do if the assassin is strong and agile. 456 00:45:09,310 --> 00:45:12,080 For secret assassination either a simpler chase (?), 457 00:45:12,170 --> 00:45:14,910 a contrived accident is the most effective technique. 458 00:45:15,140 --> 00:45:20,480 When successfully executed, it causes little excitement and is only casually investigated. 459 00:45:23,340 --> 00:45:27,970 The most efficient accident is a fall of 75 feet or more onto a hard surface. 460 00:45:31,250 --> 00:45:35,800 Elevator shafts, stairwells, unscreened windows and bridges will serve. 461 00:45:40,020 --> 00:45:44,540 Falls into the sea, or swiftly flowing rivers will suffice if the subject can not swim. 462 00:45:47,570 --> 00:45:51,910 Arson could cause accidental death if the subject is drugged and left in a burning building. 463 00:45:52,570 --> 00:45:57,310 Reliability is not satisfactory unless the building is isolated and highly combustible. 464 00:45:58,650 --> 00:46:02,600 If the subject drinks heavily, morphine or similar narcotic 465 00:46:02,600 --> 00:46:08,600 can be injected at the passing out stage and the cause of death will often be held to be acute alcoholism. 466 00:46:09,570 --> 00:46:13,620 Puncture wounds of the body cavity may not be reliable unless the heart is reached. 467 00:46:14,200 --> 00:46:17,710 The heart is protected by the rib cage and is not always easy to locate. 468 00:46:20,400 --> 00:46:25,220 Absolute reliability is obtained by severing the spinal chord in the cervical region. 469 00:46:25,540 --> 00:46:29,200 This can be done with the point of a knife or a light blow of an axe or a hatchet. 470 00:46:30,710 --> 00:46:36,710 Another reliable method is the severing of both jugular and carotid blood vessels on both sides of the wind pipe. 471 00:46:44,850 --> 00:46:47,370 "…that the officers of the CIA 472 00:46:47,910 --> 00:46:50,170 do it because they love this country. 473 00:46:51,110 --> 00:46:53,480 We believe in a free and open society 474 00:46:54,570 --> 00:47:01,740 and we deeply believe in upholding the laws and the values of this society. 475 00:47:02,570 --> 00:47:04,650 That's why we defend it, 476 00:47:05,680 --> 00:47:08,800 so that, in the words of my immigrant father, 477 00:47:09,450 --> 00:47:12,970 we can pass those values onto our children." 478 00:47:15,480 --> 00:47:19,250 What sort of philosophy could possibly justify such carnage? 479 00:47:20,600 --> 00:47:25,170 During the Cold War, the official justification was to prevent the spread of communism 480 00:47:25,170 --> 00:47:28,340 and to promote what was termed 'the national interest'. 481 00:47:29,020 --> 00:47:32,000 What does national interest mean to you? 482 00:47:32,480 --> 00:47:34,850 If you have the feeling that there is some 483 00:47:35,280 --> 00:47:39,140 document that is revised every year or every couple of years, 484 00:47:39,310 --> 00:47:41,940 some document that exists in the US government 485 00:47:42,170 --> 00:47:46,170 that is headlined "US National Interests" 486 00:47:46,510 --> 00:47:51,680 and every year, or every other year this is gone over carefully by 487 00:47:51,880 --> 00:47:56,710 groups of people high in the government and approved – these are our national interests; 488 00:47:57,020 --> 00:48:00,880 that never, ever, once, happens. 489 00:48:01,800 --> 00:48:03,910 Every single administration 490 00:48:05,140 --> 00:48:08,280 has, and is able to make up as it goes along 491 00:48:08,480 --> 00:48:12,000 what it thinks the US national interests are. 492 00:48:12,340 --> 00:48:15,540 Every single individual who works in the government 493 00:48:16,800 --> 00:48:20,850 may very well have in his own mind a list of what he thinks 494 00:48:21,080 --> 00:48:23,310 the national interest of the country are. 495 00:48:24,850 --> 00:48:29,940 Neither the phrase national security nor the phrase national interest has real meaning, 496 00:48:30,370 --> 00:48:33,480 other than to be a political tool 497 00:48:34,080 --> 00:48:36,020 for keeping the public uninformed. 498 00:48:36,140 --> 00:48:39,450 Essentially, the elite, in its ignorance, 499 00:48:39,710 --> 00:48:45,820 and in its obsessive desire to maintain secrecy and not be accountable to the public, 500 00:48:46,200 --> 00:48:48,370 seeks simple explanations. 501 00:48:48,620 --> 00:48:52,370 They seek reasons that they can use as a jingle 502 00:48:52,370 --> 00:48:56,570 that will allow the public to believe in what they're doing or to ignore what they’re doing. 503 00:48:57,170 --> 00:49:03,370 What most Americans don’t realize is that we, the people, are being held accountable by foreign publics for what is done in our name. 504 00:49:08,200 --> 00:49:10,740 Almost immediately after the CIA’s founding, 505 00:49:11,080 --> 00:49:15,600 the national interest was revealed to be a highly flexible frame of reference. 506 00:49:18,020 --> 00:49:20,540 In the coups against Mohammed Mossadegh in Iran 507 00:49:20,800 --> 00:49:23,020 and Jacobo Arbenz in Guatemala, 508 00:49:23,600 --> 00:49:25,800 neither country had communist governments, 509 00:49:26,000 --> 00:49:27,940 nor any links to the Soviet Union. 510 00:49:29,080 --> 00:49:33,650 What they did have were leaders that threatened to nationalize major industries, 511 00:49:34,370 --> 00:49:38,050 thereby threatening the profits of western corporations. 512 00:49:39,020 --> 00:49:40,620 In Iran, it was oil. 513 00:49:41,480 --> 00:49:43,250 In Guatemala, land. 514 00:49:45,450 --> 00:49:48,910 I’m John Perkins and I am a former economic hit-man. 515 00:49:48,910 --> 00:49:53,880 What we economic hit-men did, essentially was to create the world’s first truly global empire. 516 00:49:53,880 --> 00:49:55,940 I was recruited by the NSA 517 00:49:56,280 --> 00:50:00,250 while I was attending Boston University back in the 60s. 518 00:50:00,740 --> 00:50:03,310 They put me through a series of tests, including: 519 00:50:03,420 --> 00:50:06,450 lie detector tests, psychological tests, 520 00:50:06,850 --> 00:50:10,970 and in that process, they determined that I had the potential 521 00:50:11,170 --> 00:50:13,420 for being a good economic hit-man. 522 00:50:13,570 --> 00:50:17,020 They also discovered a number of weaknesses in my character that would make it 523 00:50:17,020 --> 00:50:20,740 fairly easy for them to hook me into doing this job. 524 00:50:20,970 --> 00:50:24,940 So they offered me a job as a trainee 525 00:50:24,940 --> 00:50:28,110 and it’s interesting, when you accept a job like that with the NSA 526 00:50:28,110 --> 00:50:29,820 they don’t tell you exactly what you’re gonna be doing. 527 00:50:29,820 --> 00:50:31,710 They tell you that for the next year or so, 528 00:50:31,710 --> 00:50:34,710 you’re gonna be training, and then at the end of that period of time 529 00:50:34,710 --> 00:50:36,710 they'll really determine what you’re going to be doing, 530 00:50:37,170 --> 00:50:40,310 but ultimately, I ended up becoming an economic hit-man. 531 00:50:40,940 --> 00:50:45,450 We did it by using many different means, perhaps the most common was 532 00:50:45,450 --> 00:50:47,450 to identify a third world country 533 00:50:47,800 --> 00:50:50,740 with resources that our corporations covet, like oil, 534 00:50:51,110 --> 00:50:56,000 and then range a huge loan to that country from organization like The World Bank or one of its sisters, 535 00:50:56,450 --> 00:51:01,510 but that country never actually received the money. Instead, the money went to our own corporations 536 00:51:01,770 --> 00:51:06,370 to build big infrastructure projects in that country like power plants and industrial parks, 537 00:51:06,770 --> 00:51:09,970 things that would help the very rich people in that country 538 00:51:09,970 --> 00:51:11,770 as well as our own corporations, 539 00:51:12,050 --> 00:51:17,740 but not the majority of the people who are too poor to buy electricity or don’t have the skills to get jobs in industrial parks. 540 00:51:18,200 --> 00:51:22,220 And yet, they, the whole country, would end up holding a huge debt, 541 00:51:22,680 --> 00:51:25,020 such a big debt that they couldn’t possibly repay it. 542 00:51:25,020 --> 00:51:27,480 "When I lose, I pay and when I win I expect to get paid. 543 00:51:27,800 --> 00:51:31,740 I don’t ask anybody to trust me and I don’t trust anybody: big shot or a penny ante chiseler" 544 00:51:31,740 --> 00:51:33,740 "But I tell ya, I haven't got it, if I have I'd give it to ya, 545 00:51:33,820 --> 00:51:36,280 now don't be like that, Blackie, give me a couple of days" 546 00:51:36,820 --> 00:51:39,480 So at some point, we, economic hit-men, 547 00:51:39,480 --> 00:51:41,940 go back and say: "Listen, you owe us a lot of money. 548 00:51:42,250 --> 00:51:45,140 You can't pay your debts – sell us your oil real cheaply", 549 00:51:45,140 --> 00:51:48,570 or "Vote with us on the next critical UN vote", 550 00:51:48,620 --> 00:51:51,170 or "Send troops in support of ours" to someplace 551 00:51:51,570 --> 00:51:52,820 in the world, like Iraq 552 00:51:53,220 --> 00:51:55,340 and in that way we've created this empire. 553 00:51:55,710 --> 00:51:59,110 On the few occasions when we economic hit-men fail, 554 00:51:59,400 --> 00:52:00,570 the jackals go in. 555 00:52:00,600 --> 00:52:04,940 These are people who will overthrow governments or assassinate the leaders 556 00:52:05,540 --> 00:52:07,480 of the countries that didn't accept the loans. 557 00:52:07,480 --> 00:52:11,450 I failed as an economic hit-man with Jaime Roldos, 558 00:52:11,480 --> 00:52:15,370 the president of Ecuador, and Omar Torrijos of Panama, 559 00:52:15,540 --> 00:52:18,680 and because I failed to corrupt them, failed to bring them around, 560 00:52:19,140 --> 00:52:23,250 failed to get them to take on these loans that were so destructive to their countries, 561 00:52:23,600 --> 00:52:27,970 they were both assassinated by the CIA supported jackals. 562 00:52:28,370 --> 00:52:31,020 The words economic hit-man and jackal 563 00:52:31,020 --> 00:52:33,770 are kind of tounge-in-cheek words, we use them, 564 00:52:33,940 --> 00:52:36,340 but it's like the word spy, 565 00:52:36,710 --> 00:52:38,220 or snoop, 566 00:52:40,370 --> 00:52:43,250 spook, or even CIA agent. 567 00:52:44,250 --> 00:52:46,200 People don't really use any of those terms. 568 00:52:46,200 --> 00:52:48,800 If you're a true CIA agent, a spy, 569 00:52:48,970 --> 00:52:53,080 you may talk about it tounge-in-cheek, but you've got a fancier title like 570 00:52:53,450 --> 00:52:56,820 attache, a commercial attache at some embassy, 571 00:52:57,400 --> 00:53:01,370 we economic hit-men all had fancy titles, too. My title was Chief Economist. 572 00:53:01,800 --> 00:53:04,910 But we would use this term 'economic hit-man' in tounge-in-cheek. 573 00:53:05,310 --> 00:53:10,620 And the jackals are usually people who worked for private, what they call security firms: 574 00:53:10,620 --> 00:53:14,110 a company that will have a semi-legitimate contract 575 00:53:14,110 --> 00:53:16,200 with some branch of the government to do something, 576 00:53:16,200 --> 00:53:20,250 such as protect our personnel at an embassy overseas, or maybe protect 577 00:53:20,600 --> 00:53:24,220 a media crew overseas and they will be paid to do that, 578 00:53:24,220 --> 00:53:25,710 but there will be one person 579 00:53:26,220 --> 00:53:28,880 in that organization who's managed, 580 00:53:28,880 --> 00:53:31,080 coming through these other channels. 581 00:53:31,480 --> 00:53:35,880 Sometimes the channels are what they call the 'black box monies' from the CIA. 582 00:53:36,310 --> 00:53:39,480 The money coming through these channels to hire this one person, 583 00:53:39,480 --> 00:53:41,910 who is, essentially, an assassin. 584 00:53:42,110 --> 00:53:44,280 On a few occasions when the jackals 585 00:53:44,680 --> 00:53:46,850 and economic hit-men both fail, 586 00:53:47,200 --> 00:53:48,710 then we send in the military. 587 00:53:48,800 --> 00:53:51,620 When you have an empire, you have to ask yourself: who is the emperor? 588 00:53:52,110 --> 00:53:56,250 Well, an emperor is someone who is not elected, doesn't serve a limited term 589 00:53:56,740 --> 00:53:58,450 and doesn't report to anyone. 590 00:53:58,450 --> 00:54:01,170 We do have a group of people that I call the corporatocracy, 591 00:54:01,170 --> 00:54:03,570 which are the people who run our biggest corporations, 592 00:54:03,570 --> 00:54:05,420 who do fit that definition. 593 00:54:05,740 --> 00:54:06,970 They're not elected, 594 00:54:07,140 --> 00:54:08,910 they don't serve a limited term, 595 00:54:09,080 --> 00:54:10,480 and they don't report to anyone. 596 00:54:10,570 --> 00:54:12,510 They like to say they report to their boards of directors, 597 00:54:12,510 --> 00:54:14,310 but they are all on each others' boards of directors, 598 00:54:14,310 --> 00:54:18,450 and board of directors is basically a rubber stamp of what the CEO wants to do. 599 00:54:18,850 --> 00:54:21,600 So, this is the modern equivalent of the emperor. 600 00:54:21,600 --> 00:54:24,910 They're all driven by one, single motive. One goal, 601 00:54:25,020 --> 00:54:28,200 and that is to maximize profits regardless 602 00:54:28,200 --> 00:54:30,340 of the social and environmental cost. 603 00:54:31,710 --> 00:54:33,280 In heading for that goal, 604 00:54:33,880 --> 00:54:36,600 they've created a world that's very dangerous, 605 00:54:38,080 --> 00:54:39,310 very unfair, 606 00:54:39,880 --> 00:54:41,080 unsustainable. 607 00:54:41,250 --> 00:54:45,480 A world that I certainly don't want to pass onto my grandson. 608 00:55:01,200 --> 00:55:03,370 Beginning in earnest under president Clinton 609 00:55:03,370 --> 00:55:07,820 and expanding still further during the Bush Jr. And the Obama administrations, 610 00:55:08,400 --> 00:55:12,710 the use of private contractors by the US has increased dramatically. 611 00:55:18,250 --> 00:55:21,050 Bearing names like Titan and Aegis, 612 00:55:21,050 --> 00:55:23,940 they are the modern equivalent of the mercenary army. 613 00:55:25,080 --> 00:55:31,050 "Today, I can report that, as promised, the rest of our troops in Iraq 614 00:55:31,050 --> 00:55:32,820 will come home by the end of the year." 615 00:55:33,170 --> 00:55:36,600 When president Obama announced the withdrawal of troops from Iraq, 616 00:55:36,600 --> 00:55:40,000 many Americans did not realize that thousands of mercenaries, 617 00:55:40,000 --> 00:55:43,200 funded by the US tax payer, would remain in place. 618 00:56:00,650 --> 00:56:02,220 Far from saving costs, 619 00:56:02,420 --> 00:56:06,480 these private contractors have repeatedly robbed the US tax payer 620 00:56:06,650 --> 00:56:08,020 for millions of dollars. 621 00:56:08,250 --> 00:56:10,540 But from a military-intelligence perspective, 622 00:56:10,940 --> 00:56:12,820 they perform useful purposes. 623 00:56:13,400 --> 00:56:15,800 They establish plausible deniability, 624 00:56:16,050 --> 00:56:18,450 they further minimize Congressional oversight, 625 00:56:18,650 --> 00:56:22,510 they bypass rules of war, such as the Geneva Conventions, 626 00:56:23,220 --> 00:56:26,650 and they create enormous profits for their benefactors. 627 00:56:27,740 --> 00:56:31,620 A case in point, is DynCorp, whose clients have included: 628 00:56:31,800 --> 00:56:33,110 the Drug Enforcement Agency, 629 00:56:33,650 --> 00:56:35,050 the Department of Defense, 630 00:56:35,310 --> 00:56:36,450 Department of State, 631 00:56:36,710 --> 00:56:38,600 the IRS, FBI, 632 00:56:39,020 --> 00:56:40,910 and of course, CIA. 633 00:56:41,710 --> 00:56:43,820 About half of DynCorp's revenue 634 00:56:44,340 --> 00:56:46,450 comes from the Department of Defense. 635 00:56:51,280 --> 00:56:55,850 „Every day, the people of DynCorp International are hard at work 636 00:56:55,880 --> 00:56:57,910 supporting defense, diplomacy, 637 00:56:58,140 --> 00:57:00,110 and development initiatives. 638 00:57:00,570 --> 00:57:04,510 Because we believe in the relentless commitment that has made us a leader 639 00:57:04,600 --> 00:57:07,050 in providing government support solutions. 640 00:57:07,510 --> 00:57:10,850 With 22,000 employees in 39 countries, 641 00:57:10,940 --> 00:57:12,540 we provide total support 642 00:57:12,880 --> 00:57:14,910 in aviation and land systems, 643 00:57:15,170 --> 00:57:16,020 logistics, 644 00:57:16,340 --> 00:57:17,570 training and mentoring, 645 00:57:17,880 --> 00:57:20,740 intelligence, international development, 646 00:57:21,020 --> 00:57:24,200 anti-corruption, and base operations. 647 00:57:24,680 --> 00:57:26,620 We believe in doing the right thing 648 00:57:26,970 --> 00:57:28,970 always. For our customers, 649 00:57:29,250 --> 00:57:32,200 our employees and those we serve." 650 00:57:32,970 --> 00:57:36,800 In 1999, it was revealed that employees of DynCorp 651 00:57:37,000 --> 00:57:38,570 were NOT doing the right thing. 652 00:57:41,220 --> 00:57:44,650 They were working with the Serbian mafia in the trafficking of sex slaves, 653 00:57:45,000 --> 00:57:46,770 including children. 654 00:57:48,620 --> 00:57:52,400 "Mr. Secretary, I watched President Bush 655 00:57:52,970 --> 00:57:57,850 deliver a moving speech at the UN in September, 2003 656 00:57:58,340 --> 00:58:01,970 in which he mentioned the crisis of the sex trade. 657 00:58:02,680 --> 00:58:07,020 The president called for the punishment of those involved in this horrible business. 658 00:58:07,510 --> 00:58:09,740 But at the very moment of that speech, 659 00:58:10,000 --> 00:58:14,220 DynCorp was exposed for having been involved in the buying and selling 660 00:58:14,480 --> 00:58:16,050 of young women and children. 661 00:58:16,820 --> 00:58:20,770 While all of this was going on, DynCorp kept the Pentagon contract 662 00:58:20,800 --> 00:58:24,020 to administer the smallpox and anthrax vaccines 663 00:58:24,480 --> 00:58:29,620 and is now working on a plague vaccine through the joint vaccine acquisition program. 664 00:58:30,600 --> 00:58:36,540 Mr. Secretary, is it policy of the US government to reward companies that traffic in women and little girls?" 665 00:58:36,740 --> 00:58:40,310 "Uhm... Thank you, eh, representative. 666 00:58:41,080 --> 00:58:44,340 First, the answer to your first question is no, 667 00:58:44,420 --> 00:58:48,080 absolutely not, the policy of the US government is 668 00:58:48,540 --> 00:58:52,080 clear, unambiguous and opposed 669 00:58:52,620 --> 00:58:55,880 to the activities that you described. 670 00:58:56,420 --> 00:58:59,850 The, uhm... second question..." 671 00:59:00,250 --> 00:59:02,220 "Well, how do you explain the fact that 672 00:59:02,480 --> 00:59:06,020 DynCorp and its successor companies have 673 00:59:06,200 --> 00:59:09,450 received and continue to receive government contracts? 674 00:59:10,770 --> 00:59:13,880 "I would have to go and find the facts, 675 00:59:13,880 --> 00:59:18,740 but there are laws and rules and regulations with respect to government contracts, 676 00:59:19,220 --> 00:59:25,820 and there are times that corporations do things they should not do in which case they tend to be suspended for some period. 677 00:59:26,000 --> 00:59:28,000 There are times then that the, 678 00:59:28,000 --> 00:59:30,000 under the laws and rules and regulations, 679 00:59:31,080 --> 00:59:34,050 passed by the Congress and implemented by the executive branch, 680 00:59:34,340 --> 00:59:36,710 that corporations can get off of, 681 00:59:37,280 --> 00:59:41,910 out of the penalty box if you will, and be permitted to 682 00:59:42,020 --> 00:59:44,280 engage in contracts with the government. 683 00:59:44,280 --> 00:59:47,570 They are generally not barred in perpetuity." 684 00:59:47,570 --> 00:59:50,000 "This contract, this company, 685 00:59:50,510 --> 00:59:54,200 was never in the penalty box. If you could proceed to my second question, please." 686 00:59:55,970 --> 01:00:01,740 DynCorp was not placed in the penalty box and was soon back to its old tricks. 687 01:00:02,540 --> 01:00:05,250 In 2009, WikiLeaks cables revealed 688 01:00:05,370 --> 01:00:09,200 that DynCorp was arranging sex parties for Afghan politicians, 689 01:00:09,200 --> 01:00:10,770 involving small boys. 690 01:00:11,480 --> 01:00:14,740 One of these politicians was the minister of education. 691 01:00:19,220 --> 01:00:24,310 Nor has the intelligence bureaucracy itself remained idle since the founding of the CIA. 692 01:00:25,940 --> 01:00:29,310 Under the Reagan administration, a new player emerged: 693 01:00:30,020 --> 01:00:33,680 JSOC, or the Joint Special Operations Command. 694 01:00:35,050 --> 01:00:38,420 JSOC was ostensibly created as a response 695 01:00:38,420 --> 01:00:41,110 to the failed 1980 hostage rescue attempt 696 01:00:41,110 --> 01:00:43,480 of American embassy personnel in Iran. 697 01:00:44,620 --> 01:00:48,280 It went on to conduct operations in Honduras, El Salvador, 698 01:00:48,710 --> 01:00:51,400 Nicaragua, and countless other nations. 699 01:00:55,140 --> 01:00:58,650 "The basic premise that I was saying, is there's a unit known as 700 01:00:58,680 --> 01:01:01,220 the Joint Special Operations Command - JSOC. 701 01:01:01,220 --> 01:01:04,480 It's a separately independent unit that does not report to Congress, 702 01:01:04,480 --> 01:01:07,110 at least in the years I know about, and I spent, 703 01:01:07,370 --> 01:01:11,880 if people read a story I wrote last summer in New Yorker, the Congresspeople are very upset to see new leadership. 704 01:01:12,220 --> 01:01:16,280 It has been given executive authority by the president in as many as 12 countries 705 01:01:16,450 --> 01:01:19,400 to go in and kill, we are talking about high value targets. 706 01:01:19,570 --> 01:01:20,800 That's absolutely correct." 707 01:01:21,450 --> 01:01:26,280 Recently, it was revealed that JSOC has been training members of the MEK, 708 01:01:26,710 --> 01:01:29,820 an Israeli-backed terrorist group, on US soil. 709 01:01:30,340 --> 01:01:32,510 At the very same time that MEK 710 01:01:32,970 --> 01:01:36,910 was cited on the State Department's own list of terrorist organizations. 711 01:01:37,600 --> 01:01:41,340 "If they're killing people that we don't like, it's not terrorism, by the way, we should add 712 01:01:41,650 --> 01:01:44,710 that BRICS and even the EU had basically 713 01:01:44,910 --> 01:01:47,740 moved away from that terrorism name, because, again, 714 01:01:47,880 --> 01:01:49,940 they like having these guys. 715 01:01:49,970 --> 01:01:54,220 If somebody else can do the dirty work and you can make an absolute denial, 716 01:01:54,220 --> 01:01:57,170 as we have seen from the likes of our Secretary of State, who said: 717 01:01:57,250 --> 01:02:01,400 "We are absolutely not involved in the assassination of these 5 scientists. 718 01:02:01,680 --> 01:02:04,000 And we have absolutely said it definitively!" 719 01:02:04,280 --> 01:02:08,370 Isn't it nice to have an organization - I'm not suggesting this is the organization - 720 01:02:08,620 --> 01:02:10,740 but it's nice to have an organization 721 01:02:10,800 --> 01:02:14,570 that can do something, so you can say: "It wasn't me. It must've been... 722 01:02:14,850 --> 01:02:17,280 somebody else." Y'know what I mean?" 723 01:02:18,620 --> 01:02:22,170 The United States now has 16 separate intelligence agencies, 724 01:02:22,400 --> 01:02:26,050 ranging from the ONI, the Office of Naval Intelligence, 725 01:02:26,340 --> 01:02:29,650 to the DIA, the Defense Intelligence Agency. 726 01:02:31,910 --> 01:02:37,600 Admiral Dennis C. Blair, whom president Obama appointed Director of National Intelligence, 727 01:02:38,080 --> 01:02:41,540 disclosed in 2012 that the current annual budget 728 01:02:41,740 --> 01:02:44,510 for America's 16 intelligence agencies 729 01:02:44,800 --> 01:02:47,940 is a remarkable 75 billion dollars. 730 01:02:49,510 --> 01:02:52,740 More than the entire military budgets of major powers, 731 01:02:52,970 --> 01:02:55,940 such as the UK, France and Germany. 732 01:02:56,970 --> 01:03:00,480 It employs more than 200,000 operatives worldwide, 733 01:03:00,740 --> 01:03:02,820 many of whom are mercenaries. 734 01:03:04,000 --> 01:03:07,620 Giving the intelligence community more money is like pouring gasoline onto a fire, 735 01:03:07,910 --> 01:03:09,680 it is a really bad idea. 736 01:03:09,820 --> 01:03:12,940 There is no oversight. There is no accountability, and therefore, 737 01:03:13,280 --> 01:03:17,170 they'll go on, I mean, general Haden who has now violated the constitution twice, 738 01:03:17,400 --> 01:03:20,740 once with wireless wiretapping and the second time with torture and rendition. 739 01:03:21,170 --> 01:03:25,280 Haden is on record as saying that any time he wanted to close down a program at NSA, 740 01:03:25,850 --> 01:03:30,400 the guy who would lose his status and his money and his program was the only who could tell him about it. 741 01:03:30,740 --> 01:03:33,820 So, no oversight has really created a monster. 742 01:03:34,310 --> 01:03:36,370 There are 16 intelligence agencies. 743 01:03:36,710 --> 01:03:39,850 It turns out that the State Department costs almost nothing, 744 01:03:39,850 --> 01:03:42,620 produces the most value with open-source intelligence, 745 01:03:42,620 --> 01:03:45,510 with information that is not stolen and is legal and ethical. 746 01:03:46,200 --> 01:03:48,250 Then you have the CIA, 747 01:03:48,480 --> 01:03:52,710 which has a mish-mash of analysis and a mish-mash of clandestine collection, 748 01:03:53,110 --> 01:03:55,420 and then after that come the technical agencies. 749 01:03:55,880 --> 01:04:00,310 The NSA which does signals intelligence, 750 01:04:00,310 --> 01:04:03,400 including warrantless wiretapping, and some other elements. 751 01:04:03,940 --> 01:04:06,220 The long and the short of it is that 752 01:04:06,340 --> 01:04:11,820 we're spending 60-75 billion dollars of which CIA spends no more than 6 billion, 753 01:04:12,540 --> 01:04:14,480 and we're spending it on things that don't work. 754 01:04:14,820 --> 01:04:18,170 Lockheed will spend a hundred million dollars of the taxpayer's money 755 01:04:18,170 --> 01:04:20,850 on a satellite that will self-destruct on the launch pad, 756 01:04:21,140 --> 01:04:23,770 and Lockheed will be given a contract to build another one. 757 01:04:24,000 --> 01:04:26,800 I mean, this is nuts! Policy makers are so stupid, 758 01:04:26,800 --> 01:04:29,740 they would rather a secret picture than an intelligent human analysis. 759 01:04:30,940 --> 01:04:32,620 So the whole system is rotten. 760 01:04:32,940 --> 01:04:36,620 The next president can safely cut the secret budget by 80% 761 01:04:36,850 --> 01:04:39,820 and move that money into education and open sources 762 01:04:39,940 --> 01:04:41,940 and do vastly better, not just for America, 763 01:04:42,140 --> 01:04:45,540 but for the rest of the world to whom that information can be given for free, 764 01:04:45,740 --> 01:04:47,420 in sense-made form. 765 01:04:48,600 --> 01:04:52,050 So, right now our government is completely out of touch with reality 766 01:04:52,050 --> 01:04:55,940 and it's the Keystone Cops on steroids and armed, okay? 767 01:04:55,940 --> 01:04:57,940 We are really in deep, deep trouble here. 768 01:04:59,650 --> 01:05:03,340 Have a nice day! (: 769 01:05:13,600 --> 01:05:15,420 "Rumsfeld promised change, 770 01:05:15,620 --> 01:05:18,080 but the next day, the world changed, 771 01:05:19,910 --> 01:05:22,570 and in the rush to fund the war on terrorism, 772 01:05:22,850 --> 01:05:25,250 the war on waste seems to have been forgotten. 773 01:05:25,400 --> 01:05:26,570 'My '03 budget 774 01:05:28,910 --> 01:05:30,170 calls for more than 775 01:05:30,710 --> 01:05:32,970 48 billion in new defense spending.' 776 01:05:33,140 --> 01:05:36,220 More money for the Pentagon, when its own auditors admit 777 01:05:36,220 --> 01:05:40,650 the military can not account for 25% of what it already spends. 778 01:05:40,880 --> 01:05:46,000 'According to some estimates, we cannot track 2.3 trillion dollars in transactions.' 779 01:05:46,000 --> 01:05:48,600 2.3 trillion! With a T. 780 01:05:48,850 --> 01:05:52,910 That's 8,000$ for every man, woman and child in America. 781 01:05:53,510 --> 01:05:57,400 20 years ago, Pentagon employee Franklin C. Spinney made headlines 782 01:05:57,400 --> 01:05:59,940 exposing what he calls The accounting games. 783 01:06:00,480 --> 01:06:03,370 He's still there, and although he does not speak for the Pentagon, 784 01:06:03,420 --> 01:06:05,650 he believes the problem has gotten worse. 785 01:06:05,800 --> 01:06:09,200 'Those numbers are pie in the sky, the books are cooked, routinely, 786 01:06:09,480 --> 01:06:11,280 year after year after year.' 787 01:06:11,280 --> 01:06:11,310 Retired vice-admiral Jack Shanahan commanded the navy's second fleet, year after year after year.' 788 01:06:11,310 --> 01:06:14,940 Retired vice-admiral Jack Shanahan commanded the navy's second fleet, 789 01:06:15,140 --> 01:06:18,280 the first time Donald Rumsfeld served as Defense Secretary. 790 01:06:18,480 --> 01:06:21,200 'With good financial oversight 791 01:06:22,420 --> 01:06:26,970 we could find 48 billion dollars in loose change in that building without 792 01:06:27,080 --> 01:06:28,650 having to hit the taxpayer.' 793 01:06:28,650 --> 01:06:31,570 In the two and a half minutes since this report began, 794 01:06:31,740 --> 01:06:34,600 the Pentagon has spent nearly 2 million dollars 795 01:06:35,000 --> 01:06:39,170 and it may never know where 25% of those tax dollars went." 796 01:07:03,170 --> 01:07:05,650 When it comes to waste by a particular agency, 797 01:07:05,880 --> 01:07:09,850 few can rival the NSA, or National Security Agency. 798 01:07:14,250 --> 01:07:16,940 Its headquarters, nicknamed Cryptocity, 799 01:07:17,370 --> 01:07:19,280 employs over 40,000 people. 800 01:07:19,770 --> 01:07:22,200 More than the CIA and FBI combined. 801 01:07:24,140 --> 01:07:29,620 As documented by journalist James Banford, it encompasses 525 acres 802 01:07:29,800 --> 01:07:33,110 with floor space totaling more than 7 million square feet. 803 01:07:33,910 --> 01:07:38,710 Its yearly consumption of electricity is 409 million kWh, 804 01:07:38,710 --> 01:07:41,370 equaling Maryland's capital, Annapolis. 805 01:07:45,110 --> 01:07:46,680 It has its own film festival, 806 01:07:48,020 --> 01:07:49,170 yacht club, 807 01:07:50,970 --> 01:07:54,800 and ski club with yearly trips to Austria and Switzerland. 808 01:07:57,480 --> 01:08:00,220 Its budget for 1995 to 1999 809 01:08:00,510 --> 01:08:05,800 totaled $17,570,600,000. 810 01:08:06,540 --> 01:08:09,710 Apparently, not even this was enough. 811 01:08:11,420 --> 01:08:14,940 In 2012, Wired magazine reported that the NSA 812 01:08:15,170 --> 01:08:18,620 was building an even more gargantuan complex in Utah. 813 01:08:20,420 --> 01:08:23,620 A former NSA official, quoted in the article, 814 01:08:23,800 --> 01:08:25,420 claims that: 815 01:08:31,110 --> 01:08:33,250 Though the official mandate of the NSA 816 01:08:33,250 --> 01:08:35,710 is to eavesdrop on foreign communications, 817 01:08:36,000 --> 01:08:40,340 we now know that it has long been pointing its instruments inward. 818 01:08:42,000 --> 01:08:44,540 In the Phillipines, circa 1950, 819 01:08:45,140 --> 01:08:48,020 CIA psy-war operative Ed Landsdale, 820 01:08:48,110 --> 01:08:51,480 employed a technique known as The eye of god. 821 01:08:52,220 --> 01:08:56,110 At night, operatives would paint an eye on the wall of a house 822 01:08:56,220 --> 01:08:58,970 facing a suspected communist or a communist sympathizer. 823 01:08:59,740 --> 01:09:02,020 The message: "We are watching you." 824 01:09:08,710 --> 01:09:14,570 In some respects, the NSA's well publicized spying on American citizens has the same effect. 825 01:09:18,480 --> 01:09:21,970 In the late 18th century, an English social theorist 826 01:09:21,970 --> 01:09:26,680 named Jeremy Bentham designed a prison known as The Panopticon. 827 01:09:27,940 --> 01:09:31,220 It was a circular structure with a central command center, 828 01:09:31,250 --> 01:09:34,820 built so that prisoners would never know if they are being watched. 829 01:09:43,050 --> 01:09:47,800 French philosopher Michel Foucault stated that the goal was to: 830 01:09:55,170 --> 01:10:01,800 Regardless of intent, NSA agents can only analyze a tiny portion of the information they intercept. 831 01:10:03,000 --> 01:10:10,250 Yet, the very fact that they have claimed the right to spy on American citizens is a gross violation of their mandate. 832 01:10:12,400 --> 01:10:19,220 Similarly, the CIA, which is prohibited from conducting internal security functions within the US, 833 01:10:19,220 --> 01:10:21,710 has repeatedly broken its own rules. 834 01:10:21,940 --> 01:10:26,940 Under operation CHAOS, the agency spied on leftists during the Civil Rights era. 835 01:10:29,600 --> 01:10:35,050 Under MKULTRA, they used thousands of American citizens as human guinea pigs. 836 01:10:37,680 --> 01:10:43,140 During operation MOCKINGBIRD they illegally propagandized the American public. 837 01:10:45,820 --> 01:10:50,800 "Do you have any people being paid 838 01:10:51,820 --> 01:10:54,650 by the CIA 839 01:10:55,420 --> 01:10:57,740 who are contributing 840 01:10:58,310 --> 01:11:01,740 to a major circulation, American journal?" 841 01:11:02,000 --> 01:11:06,600 "We do have people who submit thesis to American journals." 842 01:11:06,600 --> 01:11:09,050 "Do you have any people 843 01:11:09,740 --> 01:11:13,420 paid by the CIA 844 01:11:13,850 --> 01:11:16,820 who are working for 845 01:11:18,650 --> 01:11:21,080 television networks?" 846 01:11:23,110 --> 01:11:30,570 "This, I think, gets into the kind of, getting into the details, Mr. Chairman, that I'd like to get into in executive session." 847 01:11:41,740 --> 01:11:45,620 "It is a great honor to be here with the men and women of the CIA. 848 01:11:45,710 --> 01:11:49,910 I've been eager to come out here, to Langley, for some time, 849 01:11:49,910 --> 01:11:53,250 so I can deliver a simple message to you in person, 850 01:11:53,880 --> 01:11:56,140 on behalf of the American people. 851 01:11:56,480 --> 01:11:57,450 Thank you. 852 01:11:57,540 --> 01:12:00,340 Thank you for all the work that you do to protect 853 01:12:00,620 --> 01:12:03,820 the American people and the freedom that we all cherish." 854 01:12:06,880 --> 01:12:11,910 Today, it is widely accepted that secret organizations with extraordinary special powers 855 01:12:11,910 --> 01:12:17,250 are necessary for stability, for democracy, and for defense against foreign enemies. 856 01:12:17,970 --> 01:12:21,250 Yet this viewpoint has not always been the dominant one. 857 01:12:23,250 --> 01:12:25,400 In A Modern History of England, 858 01:12:25,400 --> 01:12:29,220 published in the 19th century, its author notes: 859 01:12:29,400 --> 01:12:34,450 "Nothing is more revolting to Englishmen than the espionage which forms parts of 860 01:12:34,450 --> 01:12:38,880 the administrative system of continental despotisms. 861 01:12:47,200 --> 01:12:52,000 Similarly, in 1798, a congressman colorfully warned 862 01:12:52,200 --> 01:12:54,880 that if a system of espionage is established, 863 01:12:54,880 --> 01:12:58,280 the country will swarm with informers, spies, 864 01:12:58,280 --> 01:13:03,680 and all the odious reptile tribe that breed in the sunshine of despotic power. 865 01:13:05,770 --> 01:13:10,200 If the corporatocracy has become the de-facto emperor of the US, 866 01:13:10,620 --> 01:13:13,480 the shadow government has become its elite guard. 867 01:13:16,200 --> 01:13:20,480 In the late 1980s, CIA whistleblower John Stockwell 868 01:13:20,480 --> 01:13:25,740 compared the military-intelligence complex to the praetors of ancient Rome. 869 01:13:26,510 --> 01:13:30,540 'The praetors came to exercise great power', Stockwell wrote, 870 01:13:30,540 --> 01:13:36,710 'making and unmaking emperors and allowing political and military action outside of the law. 871 01:13:37,770 --> 01:13:42,370 What rules that were observed, were announced by the issuance of edicts. 872 01:13:44,880 --> 01:13:49,080 The guard was characterized by corruption and political venality 873 01:13:49,080 --> 01:13:53,110 and was closed down by Constantine in 312 A.D.' 874 01:13:54,140 --> 01:13:59,140 353 years earlier, Julius Caesar crossed the river Rubickon. 875 01:14:26,850 --> 01:14:34,510 Roman law specified that only elected magistrates could hold imperia, or right of command, in their provinces. 876 01:14:34,940 --> 01:14:40,140 Therefore, Caesar's act directly challenged the power of the elected government. 877 01:14:42,680 --> 01:14:47,080 Today, the idiom "Crossing the Rubickon" is used to describe 878 01:14:47,080 --> 01:14:50,480 the devolution of a republic into an empire. 879 01:14:51,450 --> 01:14:55,480 It is also used to mean a point of no return. 88531

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