Hidden Tax on Humanity

Chapter 4. The China Connection

Draft of October 31, 2017
Word count: 7,773

By Mel Rockefeller with Jeff Gates

In January and again in March 2000, I traveled to China to launch an education-centric business model designed to provide an exclusive Internet portal into China for education. The initial reach was 235 million schoolchildren and their families. Nokia committed $150 million with another $100 million available as we met performance benchmarks that Nokia was confident we could meet.[1] Youthstream Media Networks President Ben Bassi told Jeff in an October 2003 interview that Youthstream put the initial value of the joint venture at $300 million with my stake $30 million for providing the concept and the strategy, designing the financial structure, raising the money and ensuring that the right people were present to close the deal—as we did.

Rather than allow the agreed-to transaction to proceed (and me get paid), Youthstream Chairman Harlan Peltz and the Youthstream board took a billion dollar U.S. company into bankruptcy. As elsewhere, the trail led back to Israel, its lobby and this transnational criminal syndicate. Just prior to Ben and I departing for Beijing, Harlan described for us his relationship since childhood with his dear friend Sandy Berger who was then serving as National Security Advisor for asset Bill Clinton. Clearly intent on proving to me the closeness of their relationship, he reached for his phone to call Berger on his private line so I could speak with him directly. I declined.[2]

Our meeting in Manhattan occurred 20 months prior to the provocation of 9/11 at a time when those attacks were being pre-staged. In April 2005, Berger plead guilty to his October 2003 theft and destruction of documents from the National Archives detailing what President Clinton was told about terrorist threats while relying on Berger’s advice.[3] As the Clinton Administration representative to the national commission investigating the 9/11 attacks, Berger was tasked with assessing his own advice by reviewing presidential papers.[4]

Harlan Peltz, Berger’s lifelong pal, undermined our agreed-to model for Internet commerce in China. That model was designed to generate far more value than Alibaba’s initial public offering 14 years later—valued at $231 billion. With our approach, the bulk of the equity would be captured for community while a substantial portion of profits would provide ongoing funding for education in what was destined to become the world’s largest economy.

Implementation also would have served as a global proof-of-concept for a hybrid business model that my father pioneered in Latin America in the 1940s to counter what he described as the rapacious greed of capitalism—a primary rationale for communism. By design, our inclusive and accountable capitalism would have captured tens of billions in financial value for community while using free markets to anticipate and address the fiscal burden of education.

Had our education-centric approach to business emerged in 2000 in the world’s most populous nation, it would have countered the ongoing oligarch-ization of China. In 2015, the “communist” Peoples Republic of China overtook the “capitalist” America as home to the most dollar billionaires with 647 versus 563 in the U.S. In mid-2017, China was minting two billionaires per week.[5]

Even in 2000, it was clear that convergence on a single model for information technology was only a matter of time. With China’s commercial infrastructure so weak, it was also clear that ecommerce would emerge—as it has—as a major market. Instead of a model designed to capture the value of these natural monopolies for a broad base of households, China’s Internet market space is now dominated by the BATs: Baidu is the dominant search engine; Alibaba controls 80% of China’s ecommerce; and Tencent, the gaming, social media and telecom giant (in May 2017, its WeChat app had more than 963 million active users), had a market capitalization of $350 billion on October 30, 2017. These three firms are now China’s largest private companies by market capitalization.

Rather than launch a new industry with a new business model designed for inclusion, Beijng’s version of the “Washington consensus” created a handful of multi-billionaires. With few alternatives, the BATs’ dominance in ecommerce made them—in effect—a taxing authority able to levy fees for online access. Rather than a model that funds education as part of doing business, China mimicked the West’s dysfunctions—at the urging of the same consensus-model advisers.

Rockefeller in China

Prior to traveling to Beijing, I had no idea that the Rockefeller name is one of the most respected in China. When I saw the security detail assigned to me on my arrival, I protested, explaining I am related to the family but not their wealth. I told the Minister in charge of our arrangements that if I wrote a check for $200,000, it would bounce even with Nokia and Youthstream backing my plan. The official thanked me for my candor and then explained why so many Chinese remain grateful for the family’s generosity in helping educate generations of Chinese with no expectation of recognition or reward. My hosts took me to see materials confirming that my ancestors’ anonymous grants in support of science, medical research and higher education helped train many Chinese professionals over the past century.

In the presence of other senior officials and Dr. Dennis Lou (see below), the Minister said,

Mr. Rockefeller, we know how much is in your account, who your father is and that you are your own person. We must protect your name. Your great-grandfather and his brother William gave to China much of their kerosene wealth in 1898. They had three conditions for the gift. First, no family member could benefit commercially as a result of the gift. Second, the gift was to remain anonymous with nearly all of China aware of what your family did for us when they gave back more than any Westerner who has ever come to China. They were the first to give back more than they took. Third, we never had to praise Jesus to get the money—with both men sharing that they taught Sunday school. Your family has the same respect as our greatest thinkers, including Confucius, which is why we cannot let anything happen to you as our guest.

As the meeting concluded and we walked out, the Minister put his hand on my back and, with his translator walking in step with us, told me that my father was the only other Rockefeller made aware of this gift in detail. He said, “The only Rockefellers who came to China to work were you and your father. The others had lavish dinner parties and took lots of photographs with our leaders.” It took me a few days to process that meeting, hoping that some day one of my grandsons’ great-grandsons or daughters would be working to make the world a better place and discover what I was doing much as I did that day when I discovered what John D. and William did for the people of China.

To help China recover from their disastrous Great Leap Forward (1958-60) and the even more disastrous Cultural Revolution (1966-76),[6] the five third-generation Rockefeller brothers (including my father) made a second large gift for education and vocational training, again anonymously. In combination, those family gifts topped $800 million in 2016 dollars.[7] The generation that experienced the Cultural Revolution while in their teens and early twenties were denied an education in favor of ideology and revolutionary fervor rather than being empowered with knowledge and an opportunity to prosper from their personal initiative.

The damage inflicted on all aspects of China’s education system took decades to mend. “Experts estimated that Mao was responsible for 40 to 70 million civilian deaths in peacetime—more than Stalin and Hitler combined.”[8] One key distinction: Stalin and Hitler have been discredited whereas Mao remains a central figure in China and the Communist Party maintains tight control over education, media and public discourse.

Liberty’s Last Line of Defense

At the urging of Dr. Glenn Olds, Dennis Lou flew to Beijing to assist me in finalizing our agreement with the Ministry of Education. I quickly found that he was still revered for his design of the vocational training program that helped China recover from the Cultural Revolution. On his arrival in Beijing, he came to the meeting wearing a well-worn jacket over a Mickey Mouse tee shirt. In a nation that reveres its elders and values their knowledge, his attire mattered not one bit. When he entered the room, everyone stood out of respect for his selfless contribution to the people of China and his reputation as an educator devoted to serving China’s best interests.

Dennis provided a key historical insight based on his father’s close relationship with Sun Yat-Sen, an iconic figure both in Taiwan and China where he’s known as a “pioneer of the revolution.” Dennis recalled his father’s explanation of how, at the urging of Jewish advisers, Mao Zedong,[9] the nation’s founder (aka “the great helmsman”), sought to make the military self sufficient rather than burdening the state budget. This “entrepreneurial funding” for the People’s Liberation Army (PLA) emerged in force post-Mao when, after the Cultural Revolution, Deng Xiaoping froze funding for the PLA while, to boost morale, aligning the PLA’s interests with those promoting global capital markets and today’s consensus model. By the late 1970s, the PLA had become a state within a state. With corruption rampant, a movement emerged to force the PLA to divest its commercial interests.

While Governor of New York, my father recruited Dennis and Glenn to internationalize the curriculum of the (then) 64-campus State University of New York (S.U.N.Y.). He realized in the 1960s that education would be liberty’s “last line of defense” against the duplicity of those I subsequently profiled for more than three decades. Thus the origins of NewRock’s education-centric “hybrid” business model designed to partner with universities worldwide, a component that dates to those Rockefeller family gifts for education.[10] [See Chapter 12.] In devising the vocational training program, Dennis worked closely with Hu Jintao, then a senior provincial official, who served as Secretary General of the Central Committee of the Communist Party from 2002-2012.

PLA arrogance was on display in January 2001 when, just as U.S. Defense Secretary Robert Gates headed into a meeting with Mr. Hu, China’s air force conducted their first test flight of a stealth fighter, surprising and humiliating Mr. Hu in front of his foreign guest.[11] Dennis also mentored Zhu Rongji who from 1998 to 2003 served as the fifth premier of China, succeeding Li Peng while serving under President Jiang Zemin. Mr. Zhu sought to force the PLA to relinquish its role in businesses that routinely enriched military officers and their families.

At the invitation of the President of Wuyi University, Dennis and I had dinner with the brother of the man who was murdered to bring Jiang Zemin to office. Mr. Zhu was a direct descendant of the first Ming emperors. The Zhu family was very close to the family of Dennis Lou. Both their fathers worked closely with Sun Yat-Sen to bring down the corrupt Qing Dynasty.

Li Peng and Mr. Zhu laid the foundation to root out the corruption that Dr. Lou described as originating with those Jewish advisers to Mao and Zhou En-lai. According to Laura Goldman writing in Forward: “In fact, 85 to 90% of the foreigners helping the Chinese at the time of the Communist takeover were Jewish. This included the daughter of the founder of the brokerage firm Goldman Sachs, who left the comfort of her Park Avenue home to assist the Chinese.”[12]

Wang Qishan joined us for that dinner. Since 2013, he has served as the public face of an anti-corruption campaign championed by General Secretary Xi Jinpeng to root out the systemic PLA corruption that these advisers designed into the system when they urged that China’s military be funded largely from PLA stakes in commercial enterprises.[13]

Designed-in Corruption

Dennis and I met with senior members of the Central Committee at Wuyi University where we discussed the possibility that these (Jewish) advisers to Mao and Zhou En-Lai used the Cultural Revolution to relocate the educated and cultured to the countryside, leaving the clever and uneducated who could more easily be bribed when placed in positions to displace Chinese culture and ensure that the interests of the PLA would be deployed not for China’s interests but for global capital markets.

My hosts were aware that I had been in Iraq in early 1997. They described how my visit was reported in China’s national media though without mentioning my name. They were curious to know if the same perpetrators at work in Iraq were also operating in China. I described how I knew they were, a fact confirmed by Dennis Lou. We discussed at length the influential role played by Jiang Qing, the stage name of Mao’s fourth wife, and her role in creating the Cultural Revolution.

With the power she wielded, anyone was killed who revealed her background as what I described as a “titty bar whore.” No one disagreed with my characterization. Knowing how those I profiled routinely weaponize sex, she was likely the asset deployed to inflate Mao’s ego. Known for his fondness of adulation, he died in 1976 as an 82-year old tyrant. In the same way that The Chosen see themselves as superior and entitled to operate above the law, he told an American interviewer that he lived above “heaven and the law”.

After several lengthy discussions, we agreed that the timing of the Cultural Revolution served as a crisis-enabled means to ensure that, with globalization of the consensus model, China—with its low cost (captive) labor force—would emerge as the primary destination for transnational financial flows. With the help of consensus model-inspired trade agreements, China was certain to emerge as a low labor cost manufacturing center for a globalized economy while enriching those long skilled at “playing the spread” such as the differential labor costs available in totalitarian societies.

In 2016, when General Secretary Xi Jinpeng referred to himself as “commander-in-chief,” a title last used from 1949-1954, he served notice that the era of the PLA thumbing its nose at political leaders was drawing to a close. As of July 2016, 37 major generals had been removed and tried for corruption. In addition to assuming the Mao-like title of “core” leader, Mr. Xi revived a nationalist mindset linked to a more aggressive stance in foreign affairs cloaked in the phrase: “striving for achievement.” In October 2016, he revived the term “comrade” when addressing colleagues[14] and, in October 2017, China’s Communist Party elevated him to the same exalted status as Mao Zedong by writing his name and his ideas (“Xi Jinpeng Thought”) into the party constitution.

Beijing proved its arrival as a potential military opponent and an Information Age superpower with a January 2007 demonstration of its ability to destroy a surveillance satellite. China gained that military capability with the help of sophisticated gyroscopic technology provided by Loral Space & Communications, then led by CEO Bernard Schwartz, Bill Clinton’s largest political contributor. The Jewish Institute for National Security Affairs (JINSA) boasts that advisory board member Stephen Bryen served for eight years as a Reagan-era Deputy Under Secretary of Defense where he founded the Defense Technology Security Administration and served as its first director. He then served on the Government Security Committee of Space Systems/Loral. Loral shareholders (i.e., neither Schwartz nor Breyer) were ordered to pay a $20 million fine for undermining U.S. national security. In practical effect, that fine was paid largely by pension plans holding Loral shares. China’s relatively low-tech missiles are now routinely sold for use in conflicts worldwide.[15]

China’s defense spending has grown at double digits every year for almost a quarter century. Over the five years prior to 2015, Beijing overtook Berlin to become the world’s third-largest arms trader as weapons exports surged 143%. In November 2016, China highlighted its growing military capability by flying its J-20 stealth fighter in public to confirm its operational first strike capability. Its popular J-17 jet fighter sells for roughly half the price of comparable western aircraft. Another popular export is its CH-4 drone, virtually identical to the U.S.-manufactured Reaper drone.

China’s growing military might and expansion of its geographic reach heightens the potential global impact of a well-timed crisis. That risk is intensified by a nationalist culture that, at least since Mao, can rely on popular support when a nationalist culture is persuaded they face an external threat. “Maintaining a sense of peril is a part of the traditions of the Communist Party,” according to Professor Wang Wen at Renmin University in Beijing who cautions that Xi’s “…sense of peril goes deeper than recent leaders.”[16]

Though he’s demonstrated control over Party elites, control at the grassroots remains elusive. Those with a “tireless genius for crisis” could foster a consensus belief in a foreign threat, providing a catalyst to rally a post-Mao China in support of an agenda calling for demonstrations of global leadership, a subject to which I’ll return. Meanwhile, Xi is rebuilding the Communist Party, growing its influence and reviving its sense of mission by assertively imbedding party units into companies so that party becomes a stakeholder in business and party activities a daily part of peoples’ lives. For foreign joint ventures, party organizations are known as a “bridge of enchantment.”[17]

Pre-Staged Crisis in China

Harlan Peltz is the son of Nelson Peltz, best known on Wall Street for his leveraged buyout of National Can acquired in 1985 with the help of junk bonds provided by Michael Milken in the Beverly Hills office of Drexel Burnham Lambert.[18] Youthstream President Ben Bassi and I briefed Harlan prior to our departure for Beijing on Youthstream’s behalf. As soon as our negotiations in China concluded with a favorable outcome, Peltz contacted the Chinese party (CYC Net) and said Ben lacked the authority to negotiate the very contract on which Ben and I had briefed him.

To find out what happened, Bassi rushed to the office of Youthstream attorney Nick Howson at the Beijing office of the New York law firm of Paul, Weiss, Rifkind, Wharton & Garrison.[19] On Howson’s desk, Bassi reports that he saw three recent faxes from George Soros.[20] Not until several years later did I realize that Simon Rifkind is the attorney who battled Attorney General Robert Kennedy when President Kennedy sought to shut down Israel’s nuclear weapons program while his brother Bobby sought to force its lobby to comply with the Foreign Agents Registration Act.[21] The Kennedy brothers were aided in that dual-track effort by Arkansas Senator J. William Fulbright, long-serving Chairman of the Senate Committee on Foreign Relations.

With the murder of John F. Kennedy in November 1963, the Israel lobby (then candidly called the American Zionist Council) transformed itself—with the help of Simon Rifkind—into the American Israel Public Affairs Committee (AIPAC), a key component of the Israel lobby. Kennedy successor Lyndon Johnson shut down both Kennedy initiatives.[22]

Readers are invited to visit the Hidden Tax on Humanity website and add their comments to an ongoing tally of a “systemic corruption levy” that traces its post-WWII origins to the U.S.-Israel relationship. Had those parallel efforts by the Kennedy brothers succeeded in the 1960s, what costs might the U.S. and the world have been spared?

An experienced high-tech executive, Ben had previously served as vice-president for business development at Lycos, Inc., known on Wall Street as “the fastest initial public offering in the history of the NASDAQ.” He then served as vice-president for sales at Firefly Network, Inc. when it morphed into Microsoft Passport. He was surprised to find that events in China unfolded just as I anticipated when our agreed-to deal was undermined by Israeli interests led by Harlan Peltz. That’s why I had devised a backup plan to negotiate an agreement directly with the Education Ministry should Sandy Berger’s life-long friend intervene, as he did. I expected his interference when he urged that I speak on the phone with Berger, a typical display or arrogance when those I was profiling believe they are in control.

Two days later, Ben and I adjusted to the Peltz setback and convened a meeting with Deputy Minister of Education Liu Bin with whom we negotiated a memorandum of understanding (MOU) for Youthstream to provide an exclusive Internet education portal for students throughout China. As Minister Liu explained, he then had 235 million students under his care and 22,000 “youth palaces” to support after-school study. To protect Ben’s job by ensuring he did not proceed contrary to Harlan’s wishes, the MOU required final approval by Youthstream.

What sold the Minister on our plan was how it protected shareholders in the 21st century, including their intellectual property (IP). To make the point, I asked, “How much are you stealing each year in Microsoft IP?” Without hesitation, the Minister replied, “Three billion dollars.” I then asked, “Minister, when we scale the model and recycle two-thirds of savings to stakeholders with education our long-term partner, who then will you be stealing from?” His eyes became very wide and he said, “We will be stealing from the stakeholders who, with your model, will be Microsoft’s partner.”

We closed the meeting and had a signed MOU the next morning. When I called Glenn with the news, he described the agreement as historic, including the rapid turnaround for approval by a bureaucratic government known for its delays. When Dennis saw the quality of the calligraphy that I was presented along with the respectful terminology, he agreed it was historic. The original of that beautiful document was stolen from my home though a photocopy was retained.

At Glenn’s urging, Ben and I contacted the embassy to schedule a courtesy briefing for U.S. Ambassador Joe Prueher whose schedule was full. The next day, soon after Ben and I took our seats in the First Class cabin for our flight home, we saw a delegation of Chinese come aboard to help seat a couple near us. As we prepared for takeoff, Ambassador Prueher said he recognized us from the photos that accompanied our request. He urged that we convene in the lounge for what turned into a three-hour discussion.

As we explained our education-centric business model, the ‘first screen’ on computers throughout China would show how much companies contribute to education, enabling the model to capture for education an estimated 70 cents of every advertising dollar being spent by companies in China (then ~$1.3 billion). The Education Ministry saw that our “pull through” marketing expanded their modest budget at a time when Microsoft’s “push” marketing alone was $700 million. With our agreed-to Internet model, stakeholders become virtual partners, reducing risk by aligning interests.

Parents would know in real time which companies were recycling profits to provide their children with a life the parents never had. As I explained to Admiral Prueher, my father pioneered this hybrid model in the 1940s but lacked the technology, including the inclusive financial technology, now available to implement—at scale.

Education, Culture and Discretion

While we worked out our agreement in Beijing, Glenn Olds arranged for us to partner with 14 major universities worldwide, including the University of California system, S.U.N.Y. and others. The value of what China agreed to in 2000 would have delivered far more financial value than Alibaba. The designed-in systemic benefits (educational, social, fiscal, etc.) would have generated even greater value. Revenue modeling will prove this to be the case with China now forced to confront rampant corruption and ongoing oligarch-ization that would not have become as systemic had our transparent stakeholder-inclusive model not been undermined by Israeli interests in 2000.

When I first met the Minister of Education, he asked my opinion about the insistence of Clinton trade negotiator Charlene Barshefsky that all Hollywood movies be allowed into China regardless of content. Prior to our meeting, I was told by our senior PLA handler not to mention Jews or Israel. As we sat down to take the official photographs and begin our discussion, the Minister immediately asked me on behalf of his boss, the person in charge of content nationwide, “Why are all U.S. trade negotiators Jews and why do they demand that China give Hollywood free access to show in China whatever films they desire—with Hollywood controlled by Jews? We have concluded all of our trade talks except for the issue of how many films can be imported each year.”[23] In response, I said,

Minister, if you’re a guest in my home and you tell me what content I must show my children, I would throw you out of my home! China is your home. You have 235 million children for whom you’re responsible. Tell Ms. Barshefsky that many American homes are far more totalitarian in censoring what their children watch on television due to the disconnect with Hollywood and the destructive impact their content has on the impressionable minds of our youth with gratuitous violence, the degradation of women, rape and brutally graphic content.

Our Founders did not anticipate such abuse of our First Amendment by those abandoning discretion. This is a very real issue for tens of millions of American families who censor what their children watch. Tell Ms. Barshefsky to have Hollywood produce films you deem healthy for your children and there’s no problem importing whatever they wish. Until then, you will continue to screen and censor what they’re producing and if she has a problem, throw her out of your home.

The minister looked at his translators to ensure they took accurate notes of our conversation. One of them pulled a recorder out of his pocket to confirm they had. The Minister was clearly happy they had a record of what was said.

Transnational Corruption

When Harlan Peltz undermined our deal in Beijing, he also locked up Youthstream shares held in Ben Bassi’s name, then valued at $62.5 million. Ben and I later confirmed that Youthstream Chief Financial Officer Bruce Resnick sold $20 million in Youthstream shares just prior to Peltz nullifying our successful negotiations.[24] Because I found a way to close the deal, Ben was fired enroute home from Beijing. “P.T.” Lucceshi replaced him as president.[25]

Peltz and Lucceshi later met with Kaisa Kautto-Koivula, senior executive at Nokia Ventures, the $14 billion investment arm of the Finnish firm that committed to finance the education portal agreed to with Minister Liu. Nokia was then the world’s largest manufacturer of cellphones and the first or second largest handset provider in China. After I described the NewRock model, I explained to Kaisa that the real value of the cellphone was not the technology but the content that would drive its design and utilization. Steve Jobs understood that key distinction, as shown by the Apple iPhone with its accommodation of a vast array of applications (apps) and its subsequent domination of what soon emerged as the smartphone market.

When Peltz blocked us in China, Kaisa and I were prevented from proving what Apple since has. Nokia had an opportunity to take their handsets from a commodity to a widely used smartphone in the world’s largest market. Also, the model would have associated the Nokia brand with an online business model that recycled advertising dollars to education rather than, as now, amassing enormous wealth almost solely for the founders of Alibaba, Facebook, Google, etc. Plus the model would have enabled Nokia to partner directly with communities, providing a designed-in competitive advantage that other firms could not easily adapt to meet.

Though Ben and I were excluded from a subsequent meeting with senior Youthstream executives, Kaisa confirmed Nokia’s willingness to proceed with our plan by making an all-cash offer to acquire the firm provided Youthstream honored my contract. When Peltz declined the offer, that decision confirmed for senior Nokia executives that I was being criminally stalked. That decision also left Nokia without a means to access the world’s largest smartphone market (in 2017, China is estimated to have 663 million smartphone users).

The Nokia division best positioned to prosper with our model instead began its steady decline as Apple raced ahead and Nokia fell ever further behind. A month after Microsoft CEO Steve Ballmer announced his retirement, he oversaw the acquisition of Nokia’s smartphone division, the last of his many strategic blunders. In July 2015, his successor as CEO declared that acquisition a $7.8 billion mistake, putting 7,800 Nokia jobs at risk.[26]

Corruption of Education

I first met Kaisa in Tampere when Glenn Olds asked that I attend a conference on distance education due to his concern that George Soros would undermine the project. By then, Glenn was confronting the reality that Soros money was being used through his Open Society outlets to seed outcomes contrary to their stated goals.[27] Kaisa had me fly to Helsinki where we spent two days preparing and polishing three 10-minute presentations to close $50 million from each of three Nokia divisions to cover the initial $150 million that Nokia committed to back me in China. Kaisa began working with Nokia in her teens when the company manufactured boots for the Russia army.

As we finished our presentations, she asked that everyone leave the conference room where we were working. She then closed the door, turned her chair toward me and asked that I turn my chair to look directly at her. With her face two feet from mine, she said,

Mel, due to the importance of Nokia to the Finnish economy, the board ordered a background check on you. Based on your family name and the circumstances of your life that you shared with us, we had Finnish intelligence do a complete work-up on you for review by our CEO and board. China is very important to our future. In summary, the report said to back you and that you had real vision. One section stated that you were being actively stalked by a foreign government. When our CEO Jorma Ollila asked that they explain this section, they refused and told him that portion was classified. Ollila and two of our senior board members wanted me to ask you what this is about.

I looked directly at her and said, “Israel is the government. Their motive is the assassination of President Kennedy that I unknowingly connected myself to while looking for my father.” Without saying a word, she stood up and walked out. I thought for sure I had blown the deal but felt good about it as I had followed my maternal grandfather’s advice to always tell the truth even when it’s most difficult.

A driver took me back to the Kamp Hotel and I began packing while the concierge changed my flight to depart as I could not stick around believing I had wasted a year’s work. Twenty minutes later, Kaisa called and told me she would pick me up for dinner. When she arrived, she jumped out of the car, hugged me and said,

Mel, I had to walk out without saying a word to you, ensuring I conveyed your precise words and facial reaction to those who requested that I ask you those questions. I told them and they all agreed with me that we must back you. We know you’re being stalked and if it is who you believe it is and their motive is that they are the true murderers of President Kennedy, we all agree you were willing to walk away not flinching when asked a question that you never stopped to reflect on before responding. The board concluded that, with that much at stake, for you to answer in that way meant your response was likely true. We want to do business with you and don’t care if you’re correct as to who and why in the classified report.

The Cost of Collaboration

Bill Townsend, then Senior Vice President at YouthStream, was also part of our team in China. When Peltz squashed the deal, he lost $32 million. Bill and I lost touch until 2007 when he contacted me after meeting a former Youthstream executive at a social gathering in New York. When Bill asked him what happened, he explained that, although he is Jewish (as are some members of Bill’s family), he was not part of the elite Jews who composed the Youthstream board. Harlan Peltz was particularly close to Herb Allen who served as his mentor. The Allen Brothers’ annual gathering in Sun Valley, Idaho draws the top media industry executives. As the former executive explained, “I wasn’t part of the circle controlling our stock along with Rupert Murdoch. I walked into the boardroom with them all there and heard them say they couldn’t let Rockefeller get paid or see the model part of a plan engaged by China’s leadership, empowering China’s youth.”

When Bill called to relay that story, he asked why I had not told him I was being stalked, by whom and why. My response, “Would you have believed me?” He replied, “No.” When Bill agreed to work with me again, he was soon fired from a job paying $500,000 per year when their (Jewish) executives discovered we were again collaborating on deploying our community stakeholder model. A serial entrepreneur and enormously talented, Bill remains one of the few people who has hung in as everyone around me—including people around them—was targeted, often financially.

Two weeks after Jeff interviewed Ben Bassi in October 2003, Ben was fired from Liquid Machines, Inc., a Lexington, Massachusetts firm where he was senior vice-president for sales. His dismissal came as a surprise both to Ben and his colleagues. Frightened and reluctant to talk, Ben described how he also became the target of an in-depth multi-year tax audit by the Internal Revenue Service.[28] Expressing similar concerns, Kaisa requested of Jeff in December 2004 that any further contact with her be deferred until these matters are functionally engaged by our national security agencies. We’ve respected her request.

On a January 2000 flight from Beijing to the U.S., I sat next to Elaine La Roche, the first CEO of the China International Capital Corporation (CICC), an investment banking joint venture in which Morgan Stanley owned a 35% stake.[29] In March 2001, I asked if she would consider leading an education and tech-transfer venture in Indonesia similar to what Dr. Olds and I designed (and Munther Ghazal and I proposed) for Iraq and what Ben and I successfully negotiated in China.

In response to her interest, I sent her a package of materials after my March 2001 meetings in Jakarta with Indonesia Intelligence Chief Arie Kumaat who had agreed to champion our model in the region.[30] Between the time I sent the materials and when I called her (about two weeks), Vice-President Dick Cheney sought to recruit her as senior executive of the Manila-based Asian Development Bank (ADB), a regional counterpart to the World Bank. As she explained, “Mel, after we spoke yesterday, Dick Cheney phoned this morning asking me to take over the ADB. You and Arie get done what you need, I’m all in. The timing of his call convinced me.”

With Arie’s murder in January 2002, she instead opened Passports, an Asian antiques store in Salisbury, Connecticut.[31] What I proposed for China, Iraq and Indonesia—combining education, tech transfer and vocational training—has since emerged as the industry standard for learning design for those active in network-enabled education and training.[32]

War, Risk & Profit

Under the terms of China’s 2004 accession to the WTO, foreign firms are allowed to sell health insurance and annuities—the mainstay of American Insurance Group (A.I.G.) then led by Chairman and CEO Maurice (“Hank”) Greenberg. With the help of its international advisory board, San Diego-based A.I.G. became the first foreign insurer allowed in China.[33] According to Financial Times, China’s membership in the WTO “has, on occasion, been held up while Mr. Greenberg has used his influence to try to maintain the advantages A.I.G. was granted…over new western rivals.”[34]

Founded in Shanghai in 1927, A.I.G.’s 2003 market value topped $166 billion. Founder Cornelius V. Starr started out selling maritime insurance in Shanghai. Following the Japanese invasion of China in 1937, he moved Asia Life/C.V. Starr Companies to New York in 1939. While in Manhattan, he collaborated on intelligence gathering with William “Wild Bill” Donovan in the Office of Strategic Services (O.S.S.) whose WWII operations morphed into the Central Intelligence Agency in the post-war era. Before the war, Germany was home to 45% of the world’s reinsurance business.

German reinsurance firms continued to grow as Nazi troops swept across Europe. Insurance brokers traveling with Hitler’s army scoured insurance company files for strategic data. At Starr’s urging, a similar effort by the Allies gathered data from German, Japanese and Italian insurance firms as a Starr/Donovan-directed covert operation identified high-value targets. That commercial intelligence enabled the Allies to plan the bombing attacks required to disrupt the Axis industrial base, undermine enemy morale and damage its will to fight. The post-war commercial implications were not lost on A.I.G.’s founder.[35]

President Harry Truman ordered the bombing of Hiroshima and Nagasaki only after American aircraft firebombed 67 Japanese cities constructed largely of wood, killing 50-60% of the civilian population in each of the targeted cities. U.SiS. Air Force General Curtis LeMay, chief strategist behind the bombings, concedes that—had the U.S. lost WWII—he would have been prosecuted as a war criminal for the carpet bombing of civilian populations.[36]

According to Los Angeles Times reporter Mark Fritz writing in September 2000: “Starr sent insurance agents into Asia and Europe even before the bombs stopped falling and built what eventually became A.I.G., which today has its world headquarters in the same downtown New York building where the tiny O.S.S. unit operated in secrecy. A.I.G. is the largest foreign insurance company in Japan. In 2003, more than a third of its $40 billion in revenues came from the Far East theater that Starr helped carpet bomb and liberate.”[37]

According to author Bradley F. Smith, the Starr/Donovan collaboration was particularly successful in Formosa and China as this deep cover intelligence network escaped the attention of Chiang Kai-Shek. Though Starr died in 1968 at age 76, his empire endures, including the Starr Foundation through which Hank Greenberg supports numerous non-profits, including the Council on Foreign Relations where he served as Honorary Vice-Chairman alongside my Uncle David. Richard Haass has served as president since his tenure as State Department Director of Planning in the lead-up to the war in Iraq. [See Chapter 2.] Greenberg has also long been a supporter of the conservative Heritage Foundation think tank in Washington, D.C. from which the Trump Administration is heavily recruiting personnel.

The Prescience of A.I.G.

In Wall Street’s post-9/11 “flight to quality,” the market value of A.I.G. soared by $40 billion.[38] Why? A.I.G.’s 2004 ad campaign says it all: “We know money.” That they do. When a global crisis occurs, the smart money sells stocks and buys bonds, ideally before the crisis hits. When the 9/11 crisis occurred, 93% of A.I.G.’s $700 billion-plus portfolio was already invested in bonds. That prescience gave A.I.G. a competitive edge over the three other major reinsurance firms—companies that cover other insurers against catastrophic losses.

Competitors Munich Re and Swiss Re had their pre-9/11 portfolios invested 60% in bonds while General Re, A.I.G.’s third major competitor and a subsidiary of Berkshire Hathaway, had its portfolio equally split between stocks and bonds. Compared to Berkshire Chairman Warren Buffet (“the Oracle of Omaha”), A.I.G. Chairman Greenberg was a financial savant. His profitable foresight was reflected in A.I.G.’s national ad campaign for 2005: “We know risk.”

While the pre-staging of that mass murder was ongoing, A.I.G. drew down its cash to $256 million, a pittance for a firm that size, as suggested by the $2.1 billion in cash-on-hand for Munich Re, $4.7 billion for Swiss Re and a hefty $5.6 billion then held by Berkshire Hathaway. A.I.G.’s ability to anticipate risk was also evident a year later when, under Greenberg’s guidance, A.I.G. reported the least losses among the Big Four reinsurers with 9/11 claims totaling a modest $820 million compared with $2.4 billion for Munich Re, $2.3 billion for Swiss Re and $2.28 billion for Berkshire Hathaway. Total payable claims for the attacks were then expected to top $40 billion.

As part of its reputational risk-management post-9/11, Greenberg led the public relations response for the insurance industry. He granted dozens of interviews and volunteered to serve as the industry’s liaison with Washington on federal anti-terrorism insurance.[39] On 9/11, former Secretary of State Henry Kissinger chaired A.I.G.’s International Advisory Board. Directors then included former UN Ambassador Richard Holbrooke and Harvard economist Martin Feldstein. Feldstein formerly served as chairman of Ronald Reagan’s Council of Economic Advisers with oversight of the deficit-financed rich-get-richer fiscal stimulus known as “supply-side” economics that the Trump administration promised to repeat. [See Chapter 10.][40]

How was A.I.G.’s financial foresight discovered? By researching those who drew me into their fields-within-fields of influences where I encountered A.I.G. in three separate venues—more than any other firm. Over decades of profiling this duplicity, I withheld a conclusion about complicity until I had three separate intersects, putting those incidents beyond mere chance. Thus my concern about A.I.G. and the search to determine how the firm fared financially pre- and post-9/11.[41]

Lloyd Wander, an A.I.G. agent put close to me, brought the original lawsuit to overrule the investor protections of Glass-Steagall legislation enacted in the 1930s and repealed during the tenure of Clinton Treasury Secretaries Robert Rubin and Lawrence Summers. A former Co-Chairman of Goldman Sachs, Rubin then joined Citigroup as Co-Chairman where his oversight helped pre-stage Citi’s role in the subprime mortgage fraud that catalyzed the Great Recession. Rubin was paid more than $100 million during his tenure at Citi. CEO and Co-Chairman Sanford Weill saw his personal wealth top $1 billion. The momentum for this step-by-step repeal was launched when Wander (and A.I.G.) sought to use banks to sell annuities.[42]

Chinese-speaking Cubans

As the “Washington” consensus grew to global scale, the consensus-inspired World Trade Organization emerged with a tribunal-like administrative structure governed by those who have proven themselves True Believers in the consensus. In practical effect, the WTO is structured on a Sanhedrin-like basis comprised of “wise men” accountable solely to themselves—and to a shared mindset.[43] With globalization of today’s money-accountable-only-to-itself model, China will continue to grow in strength as globalization’s dominant economic entity featuring a “communist” labor force with few other options—as in the “capitalist” U.S.—than to live out their lives as wage-earners while wealth continues to flow into the hands of a few.

This game theory model-able future was destined to accompany the consensus model’s underlying financial dynamics. [See Chapter 10.] In 2004 alone, the U.S. sent $162 billion of its consumer purchasing power to China. By 2008, Beijing foreign exchange reserves topped $1,950 billion, enabling China to steadily modernize its military as more U.S. jobs and purchasing power flowed in Beijing’s direction. By June 2016, its FOREX reserves topped $3.2 trillion and Beijing was flexing its geopolitical muscles by building airbases on the Spratly Islands and Scarborough Shoal in the South China Sea while expanding its claim to territorial waters, including airspace where nine nations have competing claims. This provocative development emerged just as Indonesian Intelligence Chief Arie Kumaat warned me in March 2001 when he confirmed that Israeli interests were working to undermine U.S. interests in China and throughout the Pacific. [See Chapters 2 and 3.]

Tel Aviv is gradually expanding the “Land of Israel” with the steady building of settlements by Israeli extremists, while claiming “facts on the ground” insistent that Palestinians cede their now-occupied lands to Jewish settlers.[44] The Pentagon describes Beijing’s modus operandi in identical terms: “China often uses a progression of small, incremental steps to increase its effective control over disputed areas and avoid escalation to military conflict.” Similarly, Tel Aviv rejects the authority of the U.N. and relies on its influence over U.S. lawmakers to veto resolutions seeking to hold Israel accountable to international norms. In a similar fashion, Beijing rejected the authority of an international tribunal in The Hague when in July 2016 it ruled against China’s territorial claims over a vast expanse of the South China Sea.

Beijing signaled its territorial ambitions no later than November 2004 when President Hu Jintao committed $30 billion of its FOREX reserves to Latin America, building goodwill throughout the Western Hemisphere. In effect, China has been reinvesting U.S. purchasing power in venues that are strategically important to the U.S. Two-thirds of those funds ($20 billion) were committed to Argentina, home to Latin America’s largest Jewish population (450,000). The Chinese leader also promised $500 million to upgrade the Cuban nickel industry 90 miles south of Miami. During his November 2004 visit to Latin America and the Caribbean, President Hu paid a state visit both to President Hugo Chavez of Venezuela (home to the world’s largest oil reserves) and Cuban President Fidel Castro. His visit to the Cuba leader included an offer of one million televisions along with Chinese language lessons.

Xi Jinpeng is following in Hu’s footsteps while playing an even more proactive role in geopolitics as China draws closer to the Philippines, Malaysia and Thailand. Where Beijing meets with resistance, it shifts to a time-honored strategy of dollar diplomacy or what China calls “shelving disputes in favor of joint development.” At every turn, the geostrategic advantage tilts toward China due to its financial reserves traceable to trade imbalances with the West that, in turn, were destined to accompany consensus-model globalization.

This financial might is raising concerns worldwide as this FOREX behemoth acquires or gains effective control of companies. A November 2016 report by a Congressional commission urged that a government watchdog agency report on whether U.S. outsourcing of manufacturing to China “is leading to the hollowing out of the defense industrial base.”[45] Acquisitions in both the production and the screening end the film industry are also a favorite. In 2012, Wanda Group, controlled by Wang Jianlin, China’s richest man with $32.5 billion, purchased U.S. cinema chains AMC and Carmike and a controlling stake in Legendary Pictures, producer of the Jurassic World and Godzilla movies. Wanda now controls 8,380 movie screens, more than any other firm in the world. Mr. Wang’s assessment of Hollywood, “The income is not so big, but its influence is very large.”[46]

Progress is ongoing in China’s “One Belt, One Road” project (OBOR) that seeks to transform the Eurasian land mass into a single economy with a network of interconnecting roads, railroads, ports, pipelines, airports and telecom links designed to create a series of development corridors. Beijing’s “Made in China 2025” plan (unveiled in 2015) calls for moving into advanced manufacturing in ten key industries, including aerospace, information technology, medicine, machine tools and robotics.

These projects will transform China into the world’s largest labor force working under a totalitarian government while producing consumer goods for distribution worldwide and, as in the U.S., creating an ever-smaller population of ever-richer multi-billionaires. That trend could accelerate, particularly if overseas acquisitions continue apace. The deal volume for the first ten months of 2016 reached a record $146 billion. Of the 11 trillionaires that Credit Suisse expects to emerge worldwide within two generations, several may well emerge in “communist” China.

Exhibits:

  • Photos in Beijing (2000)
  • Calligraphy
  • Photos of Simon Rifkind
  • Photo of George Soros
  • Photo of Charlene Barshefsky

President Kennedy w/ Simon Rifkind (1961)
Simon Rifkind

George Soros                                      Charlene Barshefsky

[1] Each of the three Nokia divisions committed an initial $50 million with an additional $100 million assured based on terms to be set in conjunction with Youthstream Media Networks. The agreed-to plan envisioned the use of low-cost injection-molded “smart desks” with one Nokia division providing the flat screen, another the wireless connectivity and the handset division adapting to provide the content-management component that Steve Jobs foresaw with Apple’s design of the iPhone. With our Dutch partners at Open University, pioneers in the meta language that has since become the global standard for online learning, we could show how to scale education beyond the classroom to include vocational training, adult education and the ongoing re-education essential in the transition to the Knowledge Society. By demonstrating how to generate system-wide savings as the classroom model scaled with the Ministry of Education, we could sell the solution once and have the model sell itself as measurable cost-savings provided a pull-through without the need for any marketing. That strategy enabled us to scale the solution without the need for outside capital. Instead demonstrable savings became our capital to fund the build-out as a community-centric model monetized the savings and the value-add for community. With a bottom-up approach that, by design, eliminated the middleman (see Chapter 8 re “the people in between”), I was able to adapt the model deployed by my great-grandfather to displace those who have long imposed a hidden tax on humanity. Thus their need to stop me knowing that the model could be replicated worldwide.

[2] Harlan Peltz is the son of Nelson Peltz whose 1986 leveraged buyout of National Can was one of the first large debt-financed transactions funded with high-yield (“junk”) bonds provided by Michael Milken from the Beverly Hills offices of Drexel Burnham Lambert.

[3] National Archive officials confirmed at the time that they could know for certain what documents he destroyed. That contemporaneous account has since been altered to suggest that copies were stolen rather then the originals as initially reported. In his defense, Mr. Berger was represented by Lanny Breuer who was appointed head of the Criminal Division of the Department of Justice in January 2009. Prior to his March 1, 2013 departure, Mr. Breuer stated that the lack of prosecution for wide-ranging Wall Street fraud was due to a lack of evidence sufficient to meet the evidentiary standard of proof beyond a reasonable doubt required for criminal culpability. Echoing the views of Attorney General Holder, he also conceded a reluctance to prosecute large banks for fear that an indictment, “will have a negative impact on the national economy, perhaps even the world economy.” The New York Times, March 12, 2013.

[4] See Chapter 2 describing documents hand-delivered to the 9/11 Commission on April 12, 2004 that included the facts and analyses in The Hidden Tax on Humanity. Though more than 1,200 witnesses were interviewed, no one contacted me, my counsel Ron Burd or Jeff Gates who hand-delivered the documents and had them signed for addressed to Chairman Tom Kean, Vice-Chairman Lee Hamilton and Executive Director Philip Zelikow.

[5] Figures for China are according to the Hurun Report which tracks wealth in China. For the number of U.S. billionaires and the pace of billionaire creation in China, see Pamela Ambler, “Asia Is Now Home To The Most Billionaires, With China Leading The Pack,” Forbes, October 30, 2017.

[6] Future research will identify how actress Jiang Qing, Mao’s fourth wife, came into Mao’s life to emerge as a leader in the Cultural Revolution and, after his death, a leading member of the Gang of Four responsible for the civil unrest that contributed to the death of millions of Chinese from politically sanctioned abuse and hunger.

[7] “Driving the Rockefeller Legacy in China,” December 15, 2014. http://www.wealthx.com/articles/minisite-post/carrying-on-the-rockefeller-legacy-in-asia/

[8] “The Return of Mao,” Financial Times, October 1-2, 2016.

[9] Paul Ross, “Mao’s Jews,” Jewish Journal, November 20, 2015.

[10] One of the key remaining family legacies from that era is Peking Union Medical College, widely considered the best medical school in China and an institution affiliated with Tsinghua University, one of China’s top universities.

[11] “Command and Control,” Financial Times, July 27, 2016, p.7.

[12] Laura Goldman, “A Jew in Mao’s China,” Forward, July 9, 2012.

[13] Mr. Wang serves as the powerful head of the Central Committee for Discipline Inspection.

[14] The term comrade faded from use in the 1980s along with the Mao jacket. An October 2016 meeting of the Communist Party’s Central Committee issued a directive instructing party members to call each other comrade. In recent decades, the once ubiquitous term has been widely used to describe gay men and women. Amy Qin, “’Comrade’ Xi And a Title Turned Gay,” The New York Times, November 16, 2016,

[15] Charles Clover and Sherry Fei Ju, “Beijing’s missile makers cash in on small wars,” Financial Times, October 28, 2016.

[16] Chris Buckley, “For China’s ‘Core Leader,’ Status Laced With Anxiety,” #The New York Times, November 2, 2016, p. A4.

[17] Chun Han Wong and Eva Dou, “Foreign Companies in China Get a Partner: the Communist Party,” The New York Times, October 29, 2017.

[18] For the deficit-financed source of the cash flow that enhanced the viability of leveraged buyouts with the enactment of Reagan-era “supply-side” economics, see Chapter 6 of Guilt By Association: “Money, Democracy and the Great Divide.” Harlan Peltz was also a core shareholder in Traffic Station, a firm founded by Barry Weingart and Geoff Halstead that succeeded Alpha Base Interactive which, in turn, succeeded Alpha Base Systems, a firm in which Weingart I were two of the three principal shareholders until Weingart defrauded me of my equity, aided by my (Mormon) attorneys and a compromised Los Angeles Superior Court Judge. Harlan boasted that World Bank President Jim Wolfensohn was also a close family friend due to his mother, Lauren Veronis, who married John J. Veronis of media merchant bankers Veronis, Suhler, Stevenson. With the help of Drexel Burnham Lambert’s junk bonds, Peltz and Peter May acquired National Can in 1985 for $460 million, one of the first takeovers using high-yield, non-investment grade debt securities (“junk”). After a series of acquisitions, Peltz and May sold Triangle Industries, their acquisition vehicle, for $1.26 billion plus the assumption of $3 billion in debt, generating a 120% annualized return over five years. Along the way, they acquired Snapple from Quaker Oats for $300 million, selling it three years later to Cadbury’s for $910 million, plus $540 million to cover assumed debt and employee options. In July 2004, Peltz and May acquired Deerfield & Company, an investment firm that manages $8.1 billion for pension funds and institutions. Chicago-based Deerfield also manages $700 million in hedge funds, an area into which they announced their intent to expand. Peltz has a 2016 personal wealth of $1.9 billion according to Forbes magazine. See Riva D. Atlas, “Successes Past, Partners Seek Next Big Deal In New Venue,” The New York Times, July 31, 2004, p. B1. Peltz has since started a hedge fund, Trian, to pursue “operational activism.” In mid-2006, Peltz emerged as a major investor in H.J. Heinz where he argued that cost cuts, the sale of non-core assets and better marketing could double the company’s value. James Politi, “Peltz presses Heinz to raise efficiency,” Financial Times, May 24, 2006, p. 18. In September 2006, Peltz and Michael Weinstein, former CEO of Snapple, won seats on the Heinz board. Sean D. Hamill, “2 Dissidents Appear to Have Won Heinz Seats,” The New York Times, September 9, 2006, p. B3. Heinz confirmed their seats September 15, 2006. In July 2015, he lost a proxy battle at DuPont and, in November 2015, increased his stake. In July 2017, he launched a proxy campaign against Procter & Gamble.

[19] Simon Rifkind represented AIPAC since its inception dating from when it morphed into its current form from the more honestly titled American Zionist Council. For the role that Rifkind played in enabling AIPAC to operate outside federal law and avoid registration under the Foreign Agents Registration Act, see Grant Smith, America’s Defense Line (2008) and Big Israel (2016), Washington, DC: Institute for Research: Middle East Policy, Inc.

[20] Charles F. Goldsmith, then a Paul, Weiss lawyer in Beijing, was also involved with this client.

[21] From 1927 to 1933, Simon Rifkind served as legislative secretary to New York Senator Robert F. Wagner, father of Mayor Robert F. Wagner. He served as a Federal District Court judge in New York from 1941 to 1950 when he joined Paul, Weiss. In October 1945, the War Department, at the urging of General Dwight D. Eisenhower, appointed him chief civilian adviser on Jewish affairs in Europe to General Eisenhower where he championed the creation of Israel. That role led President Harry Truman to award him the Medal of Freedom. He died in November 1995 at age 94.

[22] The same year as the founding of Israel, Texan Lyndon Johnson won the 1948 Democratic primary in a Democratic state by an 87-vote margin with 200 of those votes tallied in alphabetical order. Abe Fortas served as his counsel in successfully defending this election fraud. In October 1965, as president, “Landslide Lyndon” appointed Fortas to replace Arthur Goldberg on the Supreme Court after persuading Goldberg to serve as U.N. Ambassador. A scandal thwarted LBJ’s attempt in 1968 to appoint Fortas as Chief Justice to succeed Earl Warren. An outspoken Zionist, Fortas hosted a small dinner party at his home the night of June 4, 1967 for New York investment banker John Loeb (of Lehman Kuhn Loeb), President Johnson and Defense Secretary Robert McNamara. The Fortas/Loeb dinner confirmed that neither Johnson nor McNamara knew Israel would launch a war 5-1/2 hours after LBJ left the party. By then, former Irgun operative Mathilde Krim had struck up an affair with America’s Commander-in-Chief and was his sleepover guest at the White House that same night. When informed of the war, before informing anyone else, LBJ stopped by Mathilde’s bedroom to tell her, “The war has started.” Not until more than three hours later, at 7:45 a.m., did Johnson speak with Soviet Premier Kosygin who expressed his hope and expectation that the U.S., as Israel’s closest ally, would restrain Tel Aviv in its aggressive taking of land belonging to its neighbors. That war, planned since 1951 according to an Israeli general, ensured an ongoing provocation whose game theory model-able effects remain ongoing.

[23] “Jews totally run Hollywood.” See Joel Stein, “Who runs Hollywood? C’mon,” The Los Angeles Times, December 19, 2008.

[24] By January 2000 the Rupert Murdoch-controlled News Corp. had become an investor in Youthstream and was looking forward to “exploring ways to deepen its relationship with Youthstream.” “A Way To Woo Youth,” Newsweek, January 24, 2000. [CK S.E.C. records; insider trading filed?]

[25] Bassi notes that the merger of his small company (Commonplaces) with Youthstream was finalized by board action the same day he and I left for Beijing, excluding Ben from decision-making and leaving him on his return with no lines of authority in his old firm.

[26] “Between the time the Nokia deal was signed in February 2011 and the acquisition announcement in September 2013, Nokia’s global market share of handsets fell from about 25% to less than 5%, according to data from Statista. In other words, Ballmer persuaded Microsoft to drop over $7 billion on a ‘declining asset’ as Microsoft’s CFO once described Yahoo after Microsoft walked away from that attempted acquisition in 2008.” “Satya Nadella just undid Steve Ballmer’s last big mistake,” Business Insider, July 15, 2015. In May 2016, Nokia announced an agreement to begin making handsets again under a global licensing deal. “Nokia brand set for mobile phone revival,” Financial Times, May 18, 2016.

[27] Glenn was worried about a relationship between Soros and Takeshi Utsumi, an innovator in telecommunications, founder and vice president for technology and coordination of Global University System, and 1994 Laureate of the Lord Perry Award for Excellence in Distance Education. His innovations in distance learning included multipoint-to-multipoint multimedia interactive videoconferences using hybrid technologies.

[28] In January 2001, Business Week reported that Rupert Murdoch’s News Corp. became an investor in Youthstream when Peltz acquired sixdegrees.com in which Murdoch was a major investor. We since found that Ben Bassi was reportedly paid $1 million in hush money to ensure the Bill and I did not have his cooperation in approaching the Securities and Exchange Commission and the Justice Department to investigate this fraud on Youthstream investors.

[29] China Construction Bank owned 42.5%. As the first approved investment bank in China, CICC earned $261 million in underwriting fees in 2000 for the launch of China Unicom, PetroChina and China Telecom (now China Mobile Hong Kong Ltd.). Morgan Stanley’s prospects were improved by a junior managing director who, as a son of then-Premier Zhu Rongji, persuaded the Chinese government to decontrol oil prices. CICC also sold $200 million in bonds for construction of the Three Gorges Dam.

[30] See Chapter 3.

[31] Vice-President Cheney may well have been advised on the timing of this offer by his chief of staff, Jewish neocon Lewis “Scooter” Libby, in collaboration with others to be identified.

[32] I also collaborated on this project with Fred deVries, a pioneer in distance education at Open University of the Netherlands. See “Open University of the Netherlands – Educational Technology Expertise Center.” http://www.ou.nl/Docs/Expertise/OTEC/Projecten/onderzoeksvoorstellen%20PDF/voorstel_25_pbe.pdf

[33] President George H.W. Bush, a former U.S. envoy to China, took Mr. Greenberg with him on a 1992 trade mission to Asia. “I had a talk with my old friend, Mr. Maurice Greenberg. I told him that while I was Mayor of Shanghai, I had permitted A.I.G. to establish a branch in Shanghai, and at the time, I was called a traitor by a certain person in a responsible position. But after A.I.G. came to China, not only did A.I.G. do very well, our Chinese insurance companies also learned a lot about insurance operations and management from A.I.G., and they developed more rapidly than before.” Premier Zhu Rongji, New York City, April 13, 1999.

[34] Financial Times January 8, 2004. In 2004, Chinese savers had ~$1.2 trillion in deposits. With few alternatives to savings accounts in state-owned banks as places to invest their cash, the financial services industry foresaw a massive market for investment alternatives for a newly prosperous population. In December 2003, a public offering of China Life shares in New York and Hong Kong closed with a first-day dotcom-era gain of 90%. As a sure sign of pent-up demand, Hong Kong investors applied for 168 times their China Life allocation. Similarly, a January 2004 offering by China Green Holdings, makers of frozen foods, was oversubscribed 1600 times. How much of that $1.2 trillion flowed into A.I.G. financial products and what was the result? If those funds flow into the same financial products as in the U.S., China’s fast-widening economic divide will continue to accelerate. The global capital market waters have been tested and the institutional stage set. In October 2003, A.I.G. paid $300 million for a 10% stake in PICC, a Hong Kong-based insurer with 4,300 branches and 128,000 agents. Add to that A.I.G.’s (then) 80,000 employees and 350,000 affiliated sales agents in 130 countries and the firm was well positioned to manage multiple trillions of dollars in globalized capital markets as the consensus model was taken to scale overseen by the WTO, the World Bank and the IMF. In November 2003, PICC saw a 50% jump in its share price as it raised $800 million in a Hong Kong IPO.

[35] Financial services account for 10% of the U.K. economy and 8% of the U.S. economy.

[36] In the 1964 film, Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb, the character of Gen. Buck Turgidson (portrayed by George C. Scott) was patterned after General Curtis LeMay as Chief of Staff of the Air Force who was known for his anti-Communist views and who once stated that he would not be afraid to start a nuclear war with the Soviet Union were he elected president. General LeMay emerged in 1968 as a Vice-Presidential candidate running with George Wallace, the segregationist governor of Alabama. After implying he would use nuclear weapons to win the Vietnam War, he was widely caricatured as “Bombs Away” LeMay.

[37] Mark Fritz, “The Secret (Insurance) Agent Men,” Los Angeles Times, September 22, 2000. [CK]

[38] According to Financial Times (www.ftmastering.com/mmo/mmo12_1.htm).

[39] Post-9/11,A.I.G. also invested $219 million in Allied World Assurance, a new Bermuda based reinsurer, alongside Goldman Sachs ($250 million) and Chubb ($250 million). [CK: executives in charge of AWA at Goldman and Chubb]

[40] Both A.I.G. and Ace Ltd., a Bermuda-based insurer led by Evan Greenberg, Hank’s son, fared well in the insurance boom that followed 9/11 because, they claim, their firms took on the greatest risks at the highest prices.[40] Son Jeffrey Greenberg served as CEO of Marsh McLennan & Companies, the world’s largest insurance broker, until 2005 when he was forced out in a $800 million scandal.

[41] ## Add description of A.I.G.’s sale of coverage for collateralized debt obligations without setting aside any capital, paying out a special $20 billion dividend from the premiums and then securing $180 billion in TARP funding.

[42] Wander also helped stage a mutual fund fraud into which I was drawn by Israeli agent Jerome Corsi in an attempt to discredit me six years prior to 9/11. A.I.G. also agreed to fund Global Financial Group in Los Angeles, another corrupt orbit into which I was drawn during the 1990s where I was the target of a discrediting fraud staged by two former Israeli military officers. Wander’s annuity firm, Lifestyle Financial Services, was sold in 1994 to Great American Insurance, Carl Lindner’s company. Wander also owned TNT Marketing, a Midwest financial services firm that used 2,800 agents to sell tax-deferred annuities and mutual funds (over $100 million in revenue). His 1989 suit against the federal government helped pave the way for the repeal of Glass-Steagall when President Clinton signed the Gramm-Leach-Bliley Financial Modernization Act of 1999. Wander was also an original investor in what became the Carl Lindner-financed and Jerome Corsi-orchestrated Minnesota Investor Poland Fraud. [See Chapter 5.] In 2000, Wander became involved with AquaTreat International, Inc., a Delaware Corporation, and IMR Corporation, an Oklahoma entity that claimed ownership of proprietary water treatment products (Clearwaterä). Wander and the principals of those entities proposed that I raise $2 million to purchase international rights to their proprietary products. After several months of effort, I discovered that (a) the products were not proprietary, (b) Wander had an undisclosed financial interest in one of the entities, and (c) Wander was aware of the misrepresentations. My pursuit of this business transaction at Wander’s inducement led to a loss of time, money and credibility by me and my colleagues.

[43] Originally an ancient court system comprised of avowed sages, the Great Sanhedrin was the final authority on Jewish law with the Israelites commanded by God to obey its instructions and laws. The consensus model (a shared mindset) operates in a similar fashion with anyone challenging its operations portrayed as the secular equivalent of an apostate or a heretic. In practical effect, this mindset/paradigm has become the modern-day equivalent of the One True Faith with entry to the WTO’s circle of sages limited to True Believers who have proven by their conduct their willingness to defer to signals provided by financial markets as the primary source of guidance and wisdom.

[44] On April 14, President George W. Bush and Israeli Prime Minister Ariel Sharon announced an exchange of letters meant to gave the appearance that the U.S. would grant retroactive approval for Israel to retain lands in the Occupied Territories on which Israeli settlers had built homes. Anticipating that announcement and the violent reactions it was certain to provoke (as it did), Jeff delivered on April 12 a 154-page research compilation containing many of the facts and analyses in this book. That compilation was hand-delivered and signed-for in more than 25 Congressional and Executive Branch offices with responsibility for national security and federal law enforcement. A copy was also hand-delivered to the Russian embassy, including a chronicle of how this same trans-generational criminal syndicate financially pillaged Russia in the 1990s under the guise of privatization. See “The Presidency and Russian Organized Crime,” a chapter excerpted from Guilt By Association—How Deception and Self-Deceit Took America to War (2008) posted on wwwhiddentaxonhumanity.com

[45] Edward Wong, “Lawmakers Urge Closer Oversight of China’s Deal Making,” The New York Times, November 18, 2016.

[46] Patrick Brzezinski, Wanda Chairman Reveals Ambitious Plans in Invest Billions in ‘All Six’ Hollywood Studios,” Hollywood Reporter, Nov. 2, 2016.

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