Glenn Youngkin will soon be sworn in as Governor of Virginia, inspiring increased scrutiny upon his previous employer, the Carlyle Group, a powerful private equity firm over which he presided as co-CEO.
The Governor-elect appears every bit the gentleman and family man, albeit one who is exceedingly rich. His net worth is a reported $500 million, assets has reportedly obtain through his work and investments with Carlyle.
At a time of looming deficits and government overreach, Youngkin will likely not challenge the corrupt status quo but continue to confer privileges and taxpayer-gifted contracts upon the political classes, based upon what is generally known about Carlyle.
While ordinary Americans fight among themselves over critical race theory and other distractions, the political classes are redistributing the public’s wealth to themselves.
Since the pruning of the Bush dynasty, the Carlyle Group has lost much of its political luster; it remains a grotesque edifice to crony capitalism that serves no purpose beyond enriching its shareholders at taxpayer expense and chiseling away at America’s civil liberties.
The Carlyle Group may very well have invented crony capitalism, establishing a mechanism by which the few could fleece the many. As Congressman Paul Ryan once observed, “crony capitalism (is) where you take money from successful small businesses, spend it in Washington on favored industries, on favored individuals, picking winners and losers in the economy. That’s not pro-growth economics. That’s not entrepreneurial economics. That’s not helping small businesses. That’s cronyism. That’s corporate welfare.”
Not unexpectedly, the Carlyle Group grew rich by exploiting the poor.
In the 1970s, oil had been discovered in Prudhoe Bay, enough to render the United States energy independent for centuries.
Before the oil could be tapped, the issue of land claims needed to be resolved.
Efforts to drill the oil were stopped dead in their tracks by the Nixon Administration which had taken the United States off the gold standard to launch the petro-dollar so that Secretary of State Henry Kissinger could lock the United States into a web of “interdependencies,” eroding its ability to act independently and within its own interests.
Going forward, the United States would need to look to Saudi Arabia and other oil producing nations for natural resources it held at home, with shadow elites manipulating supply and demand.
The land claim was resolved through legislation, providing Eskimos simple title to 44 million acres of land and a settlement of nearly $1 billion, 80 percent of which could not be accounted for.
The little that was left over from the Alaska Native Claims Settlement Act was shored up into the newly created Alaska Native Corporations (ANCs), which were billed a means through which Eskimos could achieve economic self-sufficiency, not unlike the tribal casinos in the lower 48 states that churned out millions to billions of dollars while tribal members remained impoverished.
“America’s poorest corporate shareholders … came by their holdings as a birthright, through a program created by the federal government .. to settle Native land claims in Alaska,” the Washington Post reported. “Over time and through special privileges given by Congress, the corporations have partaken in one of the greatest contracting booms in American history. But Alaska Natives are still among the nation’s poorest citizens. Where did all the money go?”
Enter the Carlyle Group.
Carlyle was conceived in the Carlyle Hotel in the Upper East Side of New York City after the firm’s founders “got wind of a little known tax loophole that allowed Eskimo-owned companies in Alaska to sell their losses to profitable companies,” Dan Briody observed in The Iron Triangle.
The loophole was established in 1970 “when Alaska Natives arrived at a unique settlement with the federal government over ownership claims of Alaska land,” he wrote. “Under a unique settlement, Alaskan Natives were allowed to set up Native-run corporations to invest and manage the money they had been awarded. (The) companies soon found themselves facing huge losses and limited options for turning things around.
Alaskan Senator Ted Stevens helped Alaskan-owned companies “leverage their losses by selling them to profitable companies looking for tax breaks,” Briody wrote. “If an Alaskan company lost $10 million in a fiscal year, they would sell the losses for $7 million in much needed cash. The buyer would then write the losses off against its profits, getting a $10 million tax credit for $7 million.”
The founders of Carlyle cashed in, “flying Eskimos into Washington, DC, buttering them up, and brokering deals between them and profitable American companies,” he wrote. “Finding the loss-making Eskimos was easier than they had imagined, and the profitable counterparts couldn’t get enough free money. (Carlyle founders) took a one percent cut of the transactions and sent an estimated $1 billion through the loophole. A cottage industry had been born. (They) recognized the ongoing potential of the businesses and decided to incorporate. (With) a crew in place, liabilities limited, and money coming in the door, the boys were ready to make something of themselves.”
The foundations for the ANCs were laid by the Nixon Administration’s Office of Economic Opportunity which was run by Donald Rumsfeld, Frank Carlucci, and Dick Cheney.
Once established, ANCs were connected to defense contractors. Stevens sponsored legislation that allowed the tribal corporations to receive preferential treatment, as minority-owned businesses, through Section 8(a) of the SBA’s Small Business Act.
With a minority designation held in perpetuity, the ANCs could receive non-compete federal contracts with no monetary caps, generating unlimited amounts of money for the major defense contractors who used ANCs as fronts to circumvent the competitive bidding process.
Within Carlyle, a nexus of liberal and neoconservative interests intersected, helping them tighten their financial control of Capitol Hill. For example, billionaire investor George Soros, who has plowed money into Native Groups like the National Congress of American Indians and the Native American Rights Fund, has invested $100 million in Carlyle Partners II, one of the largest and most successful Carlyle funds.
George W. Bush had invested $10 million in one Carlyle Group which employed him before he became the Governor of Texas. Osama bin Laden, who had reportedly orchestrated the terrorist attacks on September 11, 2001, was another investor.
Rumsfeld and Carlucci alternatively served as Chairman of the Carlyle Group. Cheney went on to serve as CEO of Halliburton, an oil company that acquired lucrative federal contracting opportunities with ANCs during the War on Terrorism when Rumfeld was Secretary of Defense. While beating the drums for war as Bush’s Vice President, Cheney ensured ANCs received lucrative contracting opportunities on behalf of the nation’s leading defense contractors.
President George H.W. Bush, a former CIA Director who had worked with Nixon to open up markets in China for multinationals, was advisor to Carlyle while his son was President.
“Carlyle would never have gotten to the level that it is at today had it not been for the premeditated commingling of business and politics,” Briody wrote.
Between 1998 and 2003, the firm reportedly managed accounts valued at over $157 billion, with Carlyle ranking as the Pentagon’s ninth largest contractor. By 2011, Carlyle co-founder David Rubenstein reportedly had a net worth of $2.8 billion as 138th richest American, according to Forbes.
Rubenstein recruited Youngkin to join the firm in 1995, when Bill Clinton was President, with the Clintons forging close and enduring ties with Carlyle.
Adding to this, American Intelligence Media has reported a disturbing commingling of interests between the Carlyle Group and Serco and QinetiQ, with the latter two companies (in which the Rothschild-controlled British Monarch holds the golden controlling share) processing American patents and receiving U.S.-taxpayer funded defense contracts.
As founding secretary for QinetiQ, a creation of the British Ministry of Defense, Youngkin owes his wealth, career, and fealty to the British Monarchy, which is controlled by the Rothschilds, and ultimately the Vatican – globalists leading the United States into a technocracy which has brought untold misery upon the American people, stripping the people of their wealth and civil liberties under the pretext of wars, terrorism, and endless manufactured crises. In the process they have reorganized the nation’s wealth, natural resources, and power under their own control by way of the public-private partnerships forged through groups like Carlyle.
How Youngkin can champion the interests of the American people while serving a foreign master that seeks to extinguish American exceptionalism under a tyrannical New World Order led by Communist China is anyone’s guess.
(c) 2021 Susan Bradford