Rupert Murdoch resigns from newspaper boards

(the man who has done the most to stain the unbiased reputation of the media more than anyone else while claiming to be "fair and balanced"; and who helped to cause lowest approval rating for news organizations ever; and who broke the law in England by wire tapping politicians' and celebrities' private phone lines. we're almost rid of him!--jef)

By Arturo Garcia - RAW Story
Saturday, July 21, 2012 

The (U.K.) Telegraph is reporting that media mogul Rupert Murdoch has resigned from the boards of his various newspaper holdings in both the United Kingdom and the United States.

Filings with both the United Kingdom Registrar of Companies and the U.S. Securities and Exchange Commission indicate the resignations were made within the past week.

Though a News Corporation spokesman called Murdoch’s departure from that company board, as well as NI Group, Times Newspaper Holdings and News Corp Investments, “nothing more than a corporate housecleaning exercise prior to the company split,” there is speculation mounting that it means he and his son James, at one time mentioned as a potential successor, could be on their way out from News Corp entirely.

“James and Rupert have decided that they are not welcome in the UK, and they’re right,” said Claire Enders at Enders Analysis. “There is an enforced emotional withdrawal from these assets because they are no longer useful [in terms of influence].”

What Scandal?

Phone Hacking: US Authorities Preparing to Subpoena News Corp

Saturday, July 23, 2011 by The Guardian/UK
Investigation launced into whether News Corp broke anti-bribery and hacking laws in US

by Ed Pilkington in New York 

 

The judicial screws are tightening on Rupert Murdoch's empire in America as the US justice department prepares to subpoena News Corporation in its investigation into whether the company broke anti-bribery and hacking laws on both sides of the Atlantic.

The Foreign Corrupt Practices Act forbids US-based companies from profiting from bribery in other countries. The news that subpoenas are being drawn up, reported by News Corp's flagship newspaper the Wall Street Journal, comes a week after attorney general Eric Holder said he was launching a preliminary investigation into the media group as a result of the UK phone-hacking scandal.

According to the Journal, the subpoenas will be broadly cast to draw information from the company relevant to the investigation, though final approval has yet to be granted by top justice department officials. In addition, it has emerged that federal prosecutors have begun probing allegations that News Corp's advertising arm in the US hacked into a computer of a competitor as part of a campaign to crush its rival.

A lawyer for the smaller company, Floorgraphics, told NBC he was visited by two federal prosecutors and an FBI agent. News Corp declined to comment on the legal moves.

Mary Mulligan, a former federal prosecutor in the southern district of New York that handles many of the big corporate cases of this sort, said there were numerous directions in which the probe of News Corp could go. "This is a complicated investigation, and a very important matter that's being looked into." She said the FBI and other federal agents would be guided by what they found.

"The facts are going to drive any charges that arise – what was accessed, how it was accessed and where."

One specific allegation that the FBI is investigating is whether News of the World journalists tried to access the phone records of 9/11 victims. The claim was raised in the UK's Daily Mirror, though, so far, no solid evidence has emerged to support it. If the accusations are confirmed, News Corp could be susceptible to prosecution under Title 18 USC 2701, involving unlawful access to stored communications, or 2703 and 2704 if the mobile phone messages are found to have been stored on a separate server.

News Corp also faces a possibly lengthy and costly federal probe into whether it broke anti-bribery laws as part of the illegal News of the World phone hacking in the UK.

The company is potentially liable under the Foreign Corrupt Practices Act (FCPA), which bans US-based companies from profiting from bribery and corruption in other countries.

News Corp is a US-based firm, its headquarters on Sixth Avenue in Manhattan.

FCPA experts have suggested that it could be brought under the auspices of the act because News of the World journalists bribed police officers in the UK in search of exclusive stories that in turn increased sales and generated profits.

It is not a defence for News Corp executives to argue that they were unaware of the bribery. Under the FCPA, a company can still be penalised if it should have known – what is called "willful blindness".

News Corp could also come under the scrutiny of the US Securities and Exchange Commission (SEC), which is jointly responsible with the justice department for policing the FCPA.

The SEC will want to know whether News Corp properly declared all its activities in its accounts or whether it tried to hide any bribes made within the UK under false accounting returns.

It is not known precisely what information investigators are seeking from News Corp under the subpoenas, but it could include News of the World accounts which would then be examined by forensic accountants.

News Corp itself seems to be most anxious about the FCPA side of the federal investigations, judging from the legal team it has assembled – some of the heaviest hitters in American legal affairs.

They include Brendan Sullivan, a formidable trial lawyer once described as "the legal equivalent of nuclear war", and Mark Mendelsohn, who used to head the justice department section that decides which FCPA cases to prosecute. He is joined by Michael Mukasey, a former US attorney general, and his legal partner Mary Jo White, who represented Siemens in one of the largest FCPA cases ever.

The Siemens case underlined how serious an FCPA prosecution could be for News Corp. In 2008, the engineering company admitted bribing foreign officials around the world and paid a record $800m (£490m) in settlement. That included $350m in disgorgement – a repayment for the profits it was estimated to have made as a result of the bribery.

No figure exists for how much money News of the World made out of its phone hacking activities. Under the FCPA, a rough calculation would be made which News Corp could be forced to disgorge.

Evangelicals: Voting for a Corporate Agenda

The evangelical white underclass have given a big boost to the corporate bottom line.
By Frank Schaeffer, AlterNet
Posted on November 10, 2010

Tens of millions of American voters got duped badly in the 2010 election. The bible-thumping white underclass thought they hit back at what they regarded as the nefarious forces trying to “take our country away.”

They were bought, paid for, sold, traded and manipulated by the most powerful in the US election: a Billionaire Lynch Mob led by Rupert Murdoch, Karl Rove, the Koch brothers, and hundreds of millions in organize corporate cash. They peddled a fear agenda: fear of immigrants, fear of government control of our lives, fear that their country would become irrevocably changed.

Here's how it happened:

Where the fear and loathing began

A bedrock article of faith among many of the anti-Obama white voters is that America had “Christian origins,” and that today America must be “restored” to “our religious heritage.” The “Puritan heritage” of America is constantly cited as evidence for our need to return to our “biblical roots.” The Constitution is also waved around as if it too is some sort of Bible to be religiously believed in. Of course the Billionaire Lynch Mob doesn’t care about such quaint ideas as individual liberties, let alone “biblical absolutes,” but many of the people who believed the anti-Obama lies did care.

The earnest, mostly Evangelical dupes have a point: by calling for a “return to our roots” (be they biblical and/or constitutional) they are actually maintaining a grand old American tradition: religious delusion as the basis for conquest. The Puritans believed that they were importing “authentic Christianity” to America, especially as written in the Old Testament. They said that they were on a divine mission, even calling themselves “The New Israel” and a “city set upon a hill.” John Winthrop (governor of Massachusetts Bay) transferred the idea of “nationhood” in biblical Israel to the Massachusetts Bay Company. And the Puritans claimed they were God’s “Chosen People.” They said that they had the right to grab land from the “heathen.” These were the American Indians whom the Puritans thought of as the “new Canaanites,” to be slaughtered with God’s blessing and in the case of the Pequot Indians burned alive.

There are many threads in the anti-Obama tapestry but three are ignored at our peril: 1) The End Times fantasies of the Evangelicals; 2) The rise of so-called Reconstructionist theology and 3) the culture war launched over the legalization of abortion.

These “threads,” not the economy alone, are also the source of the vote where white lower class and white middle class Americans voted in droves against their own self-interest. Let’s unpick these fraying threads one at a time.

1. “End Times” Fantasies

The evangelical/fundamentalists/Republican far right is in the grip of an apocalyptic “Rapture” cult centered on revenge and vindication. This “End Times” death wish is built on a literalist interpretation of the Book of Revelation. This fantasy has many followers. For instance to take one of many examples, Jerry Jenkins and Tim LaHaye’s “Left Behind” series of sixteen novels represents both a “reason” and a symptom of the hysteria that grips so many voters.

The “Left Behind” novels have sold tens of millions of copies while spawning an “End Times” cult, or rather egging it on. Such products as Left Behind video games have become part of the ubiquitous American background noise. Less innocuous symptoms of End Times paranoia include people stocking up on assault rifles and ammunition, freeze dried food (pitched to them, by the way, by Billionaire Lynch Mob-handmaid Glenn Beck), gold (also sold to them by Glenn Beck), adopting "Christ-centered" home school curricula, fear of higher education (“we’ll lose our children to secularism”), embracing rumor as fact (“Obama isn’t an American”) and fighting against Middle East peace iniatives, lest they delay the “return of Jesus,” for instance through Houston mega church pastor John Hagee’s Christian Zionist-centered “ministry.”

A disclosure: My late father, Francis Schaeffer, was a key founder and leader of the American Religious Right. For a time in the 1970s and early 80s I joined him in pioneering the Evangelical anti-abortion Religious Right movement. I changed my mind. I explain why I quit the movement in my book CRAZY FOR GOD -- How I Grew Up As One Of The Elect, Helped Found The Religious Right, And Lived To Take All - Or Almost All - Of It Back.

John Hagee, mega church pastor and founder of Christians United for Israel said: “For 25 almost 26 years now, I have been pounding the Evangelical community over television. The Bible is a very pro-Israel book. If a Christian admits ‘I believe the Bible,’ I can make him a pro-Israel supporter or they will have to denounce their faith. So I have Christians over a barrel you might say.” The assumption Hagee makes -- that “Bible-believing Christians” will be pro-Israel -- is the dominant view among American Evangelical Christians. These are the people who goad us to make perpetual war worldwide. And these are the people who supposedly follow a teacher who said, “Blessed are the peacemakers.”

Few within the Evangelical community have dared to publically question such Haggee’s approach. The Christian Zionists led by Hagee et al even went after their very own George W Bush for backing peace talks between Palestinians and the Israeli government. So can you imagine the hatred the Christian Zionists have for President Obama, who also wants peace in the Middle East?

The momentum for building a subculture that’s seceding from mainstream society (in order to await "The End Times" has irrevocably pried loose a chunk of the American population from both sanity and from their fellow citizens. The Christian Zionist franchise holds out hope for the self-disenfranchised that -- at last -- everyone will know "We born-again Christians" were right and "They" were wrong. But here’s the political significance of the Christian Zionist dominance: the evangelical/fundamentalists’ imagined victimhood.

I say imagined victimhood, because the born-agains are hardly outsiders let alone victims. They’re very own George W Bush was in the White House for eight long, ruinous years and Evangelicals also dominated American politics for the better part of thirty years before that by enforcing a series of “moral” litmus tests that transformed the Republican Party into their very own culture wars lickspittle.

Nevertheless, the white evangelical/conservative Roman Catholic sense of being a victimized minority only grew with their successes. “You are not alone!” said Glenn Beck, playing to these “disenfranchised” “victims,” who – as the midterm results once again proved -- turn out to look more like a majority of white voters who had the power to turn Sarah Palin into a multimillionaire overnight and send the likes of Rand Paul to the Senate.

2. The Rise of Reconstructionist Theology

Where did the “victims” on the Far Right get their “theology” of perpetual damn-the-facts victimhood from? The history of theology (Christian or otherwise) is the history of people desperately trying to fit the way things actually are into the way their “holy” books say they should be. And since the facts don’t fit and never will, religious believers can either change their minds, embrace paradox, or find someone else to blame for their never-ending loss of face and self-esteem.

Most Americans have never heard of the Reconstructionists. But they have felt their impact through the Reconstructionists’ (often indirect) influence over the wider Evangelical community. In turn, the Evangelicals shaped the politics of a secular culture that barely understood the Religious Right let alone the forces within that movement that gave it its rage.

If you feel victimized by modernity (let alone humiliated by reality) then the Reconstructionists have The Answer to your angst: apply the full scope of the Biblical Law to modern America and to the larger world! Coerce “non-believers” to live in your imaginary universe! In other words Reconstructionists wanted to replace the U.S. Constitution and Bill of Rights with their interpretation of the Bible.

Most Evangelicals are positively moderate by comparison to the Reconstructionist “thinkers.” Most libertarians, who formed the backbone of the Tea Party (at least until the Far Right Evangelicals began to take the Tea Party over) would hate them. But the Reconstructionist movement is a distilled version of the more mainstream evangelical version of exclusionary theology that nonetheless divides America into the “Real America” (as the Far Right claim only they are) and the rest of us “sinners.”

The Reconstructionist worldview is ultra Calvinist, but like all Calvinism has its origins in ancient Israel/Palestine, when vengeful and ignorant tribal lore was written down by frightened men (the nastier authors of the Bible) trying to defend their prerogatives to bully women, murder rival tribes and steal land. These justifications probably reflect later thinking: origin myths used as propaganda to justify political and military actions after the fact—i.e., to justify their brutality the Hebrews said that God made them inflict on others and/or that they were “chosen.”

In its modern American incarnation, which hardened into a twentieth century movement in the 1960s and became widespread in the 1970s, Reconstructionism was propagated by people I knew personally and worked with closely when I too was a Religious Right activist claiming God’s special favor. The leaders of the Reconstructionist movement included the late Rousas Rushdoony (Calvinist theologian, father of modern-era Christian Reconstructionism, patron saint to gold-hoarding Federal Reserve-haters, and creator of the modern Evangelical home-school movement), his son-in-law Gary North (an economist, gold-buff, publisher and leading conspiracy theorist), and David Chilton (ultra-Calvinist pastor and author.)

Reconstructionism, also called Theonomism, seeks to reconstruct “our fallen society.” Its worldview is best represented by the publications of the Chalcedon Foundation, which has been classified as an anti-gay hate group by the Southern Poverty Law Center. According to the Chalcedon Foundation website, the mission of the movement is to apply “the whole Word of God” to all aspects of human life: “It is not only our duty as individuals, families and churches to be Christian, but it is also the duty of the state, the school, the arts and sciences, law, economics, and every other sphere to be under Christ the King. Nothing is exempt from His dominion. We must live by His Word, not our own.

It’s no coincidence that the rise of the Islamic Brotherhoods in Egypt and Syria and the rise of Reconstructionism took place in more or less the same twentieth-century time frame—as modernism, science and “permissiveness” collided with a frightened conservatism rooted in religion. The writings of people such as Muslim Brotherhood founder Hassan al-Banna and those of Rushdoony are virtually interchangeable when it comes to their goals of “restoring God” to his “rightful place” as he presides over law and morals. Or as the late Reconstructionist/Calvinist theologian David Chilton, writing in PARADISE RESTORED--A Biblical Theology of Dominion (and sounding startlingly al-Banna-like) explained:

Our goal is a Christian world, made up of explicitly Christian nations. How could a Christian desire anything else? Our Lord Himself taught us to pray: “Thy Kingdom come; Thy will be done on earth, as it is in heaven” (Matt. 6: 10)… The Lord’s Prayer is a prayer for the worldwide dominion of God’s Kingdom… a world of decentralized theocratic republics.... That is the only choice: pagan law or Christian law. God specifically forbids “pluralism.” God is not the least bit interested in sharing world dominion with Satan.

The message of Rushdoony’s work is best summed up in one of his innumerable Chalcedon Foundation position papers, “The Increase of His Government and Peace.” He writes: “[T]he ultimate and absolute government of all things shall belong to Christ.” In his book Thy Kingdom Come -- using words that are similar to those the leaders of al Qaida would use decades later in reference to “true Islam” -- Rushdoony argues that democracy and Christianity are incompatible: “Democracy is the great love of the failures and cowards of life,” he writes. “One [biblical] faith, one law and one standard of justice did not mean democracy. The heresy of democracy has since then worked havoc in church and state… Christianity and democracy are inevitably enemies.”

3. The Culture Wars Launched over the Abortion Debate

The significance and rise of the Reconstructionists and their (often indirect) impact on the wider evangelical subculture can only be understood in the context of the January 22, 1973 Supreme Court ruling on Roe v. Wade.

Roe energized the culture war like nothing else before or since. This war has even fed the passion that burned within the so-called Tea Party movement’s reaction to Obama’s moderate legislative health care reform predicting “Death Panels.” Roe also indirectly energized even those members of the Far Right – for instance the Tea Party’s pro-choice libertarians -- who didn’t care about abortion per se. Roe had such far-reaching effects because reactions to Roe defined the scorched-earth, winner-take-all and rabidly anti-government tone of the culture war fights since 1973.

Fast forward thirty years to the first decade of the twenty-first century: The messengers and day-to-day “issues” changed but the volume of the anti-government “debate” and anger originated with the anti-abortion movement. “Death Panels!”, “Government Takeover!”, “Obama is Hitler!” and all such “comments” were simply updated versions of “pro-life” rhetoric. And ironically, at the very same time as the Evangelicals who began the anti-abortion crusade (along with conservative Roman Catholics) had thrust themselves into bare knuckle politics over Roe, they also (I should say we also) retreated to what amounted to virtual walled compounds.

Evangelicals created a parallel “Christian America,” our very own private world, as it were, posted with “No Trespassing” signs. Our new “world” was about creating a Puritan/Reconstructionist-style holy-nation-within-our-fallen-nation.

This went far beyond mere alternative schools and home schools. Thousands of new Christian bookstores opened, countless Evangelical radio programs flourished in the 1970s and 80s, and new TV stations went on the air. Even a “Christian Yellow Pages” (a guide to Evangelical tradesmen) was published advertising “Christ-centered plumbers,” accountants and the like who “honor Jesus.” New Evangelical universities and even new law schools appeared, seemingly overnight with a clearly defined mission to “take back” each and every profession – including law and politics – “for Christ.” For instance, Liberty University’s Law School was the creation of the late Jerry Falwell, who told me in 1983 of his vision for Liberty’s programs: “Frank, we’re going train a new generation of judges and world leaders in the law from a Christian worldview to change America.” This was the same Jerry Falwell who wrote in America Can Be Saved: “I hope I live to see the day when, as in the early days of our country, we won’t have any public schools.”

To the old-fashioned Goldwater-type conservative mantra of “big government doesn’t work,” in the 1970s the newly-radicalized Evangelicals added “the US Government is Evil!” Our swap of spiritual faith for the illusion of political power – I say “illusion” since even in the 70s and 80s the real power was in the hands of the Billionaire Lynch Mob -- meant that we would tell people how to vote, but that we didn’t want our kids going to school with theirs. We’d wind up defending not just private schools and home schooling to “protect” our children from the world, but also private oil companies and private gas-guzzling polluting cars, private insurance conglomerates and so forth.

The price for the Religious Right’s wholesale idolatry of private everything was that Christ’s reputation was tied to a cynical political party owned by billionaires from the fast-food industry, raping the earth (not to mention our health), to the oil companies destroying our climate. It only remained for a Far Right Republican-appointed majority on the Supreme Court to rule in 2010 (Citizens United V. The Federal Election Commission), that unlimited corporate money could pour into political campaigns – anonymously -- in a way that clearly favored corporate America and the super wealthy who long since were the only entities served by the Republican Party’s defense of the individual against the government. The “individuals” turned out to be Exxon, the Koch brothers, Rupert Murdoch, McDonald’s and Goldman Sachs et al.

Conclusion

It’s a question of legitimacy and illegitimacy. What the Religious Right, including the Religious Right’s Roman Catholic and Protestant “intellectuals” (like my father) did, was contribute to a climate where the very legitimacy of our government, even any government, is up for grabs. Then the internet came along and Fox News came along and Rush Limbaugh, Michele Bachmann et all came along and no fiction was too fantastical to be believed as fact. We passed into a high tech stone age, myth superstition and outright lies gained a new currency.

Following the election of our first black President, the “politics” of the Evangelical, Roman Catholic and Mormon Far Right was not the politics of a loyal opposition, but the instigation of race-tinged revolution first and best expressed by Rush Limbaugh when he said, “I hope Obama fails.” All that happened in the midterm election of 2010 was that the corporate interests (unleashed by the Supreme Court), the Republican Party leadership and the Tea Party built on and/or cashed in on, the “biblically-based” antigovernment passion.

This was the politics that won in the Republican gains in the 2010 midterm elections. This was the logical conclusion of the process of delegitimizing the Federal Government that was launched by the Reconstructionists, the anti-abortion movement and of course is fed by the “Left Behind”/Christian Zionist apocalyptic revenge fantasy.

The Billionaire Lynch Mob’s only sacrament is fear. Their reward for cashing in on white religiously-believing middle class American’s addiction to Bronze Age biblical mythology is to walk away with our country. And fear-filled white Americans don’t get anything in return, unless you count their fleeting visceral pleasure of putting “that uppity black man” in the White House in his place.

Tea Party Inc.: The Big Money and Powerful Elites Behind the Right Wing's Latest Uprising

The Tea Parties are billed as a people's movement. But they wouldn't exist without the help of deep-pocketed billionaires.
By Adele M. Stan, AlterNet/The Investigative Fund at The Nation Institute
Posted on October 25, 2010

Click here for an Illustrated Guide to Tea Party, Inc.

This article was reported in collaboration with The Investigative Fund at The Nation Institute.

Win or lose, the Tea Party movement will come away from next week's elections triumphant, having injected into the Republican Party a group of candidates pledged to the dismantling of government and wed to the religious right. Of the movement's dozen favored candidates for U.S. Senate, all are anti-abortion, and five oppose it even in cases of rape and incest. Among their number are Colorado's Ken Buck, who has compared homosexuality to alcoholism, and Nevada's Sharron Angle, who wants to demolish both the Department of Education and the Environmental Protection Agency. Major GOP players, from political strategist Karl Rove to former Bush speechwriter David Frum, have fretted publicly over Tea Party extremism, with Frum complaining of the movement's "paranoid delusions."

But it has now become clear that these Tea Party "outsiders" are all part of an inside game, a battle for control of the Republican party.

Though billed as a people's movement, the Tea Party wouldn't exist without a gusher of cash from oil billionaire David H. Koch and the vast media empire of Rupert Murdoch. Many of the small donations to Tea Party candidates have been cultivated by either Fox News Channel, a property of Murdoch's News Corporation, or the Americans for Prosperity Foundation, chaired by Koch. The movement's major organizations are all run, not by first-time, mad-as-hell activists, but by former GOP officials or operatives.

Taken together, Americans for Prosperity, FreedomWorks (another far-right political group seeded by the Kochs) and Murdoch's News Corp, owner of Fox News and the Wall Street Journal, form the corporate headquarters of a conglomerate one might call Tea Party, Inc. This is the syndicate that funds the organizing, crafts the messages, and channels the rage of conservative Americans at their falling fortunes into an oppositional force to President Obama and to any government solution to the current economic calamity. Groups such as Tea Party Express, Tea Party Nation, and the FreedomWorks-affiliated Tea Party Patriots; the bevy of political consultants for hire; and various allied elected officials can be understood as Tea Party, Inc.'s loosely affiliated subsidiaries. The Web sites of FreedomWorks, Americans for Prosperity and the Tea Party side projects of Fox News Channel's Glenn Beck are linked with those of Tea Party Express and Tea Party Patriots, all of which in turn solicit support for Tea Party candidates.

The armies of angry white people with their "Don't Tread on Me" flags, the actual grassroots activists, are not the agents of the Tea Party revolt, but its end users, enriching the Tea Party's corporate owners just as you and I enrich Google through our clicks.

Coming Out Party

Tea Party, Inc. was on full display in our nation's capital in late August, when Glenn Beck gathered his angry white multitudes at the Lincoln Memorial on the anniversary of Martin Luther King's historic "I Have a Dream" speech. The tens of thousands of Tea Partiers who showed up for this political revival were mobilized by untold hours of free promotion on Murdoch's network, while a related "Take America Back" convention, held the day before at Constitution Hall, was convened by FreedomWorks.

At that event, the crowd was treated to a trailer for a forthcoming film called Runaway Slave, narrated by Rev. C.L. Bryant, an African-American pastor from Louisiana identified as "a former NAACP radical," who made the case that liberalism is yet another means of enslaving black people.

"[I]n the black community," Bryant says in the film, "there's always somebody who's gotta keep them niggers in control." A photo of Jesse Jackson flashed on the screen. Then one of Al Sharpton. Some images flashed by so quickly that they were barely discernable. One was of a wriggling maggot.

Before the night was out, Glenn Beck himself graced the stage, asking the crowd to "expect miracles" at the next day's rally.

A few miles away, a more sedate crowd was jammed into a Marriott ballroom for a gala dinner that wrapped up yet another activist conference, the Defending the American Dream Summit, this one convened by the Americans for Prosperity Foundation. Striding toward the podium to the opening strains of "New York, New York" was chairman Koch. Tall and dapper in a precisely tailored dark suit, the 70-year-old stood in sharp contrast to the 2,500 middle-class women in pastel frocks and men in department-store sport coats who populated the ballroom tables.

Koch prefers to be known for the hundreds of millions he lavishes on his adopted city's cultural institutions -- the New York City Ballet, the Metropolitan Museum of Art, and the Metropolitan Opera, to name a few. But the quieter largess behind events like these, dispensed by David Koch and his brother Charles, has reshaped Washington, D.C., and our national politics. Though Americans for Prosperity, which he founded, and its foundation, whose board he chairs, have been instrumental in organizing the Tea Party movement, Koch still publicly claims to have no Tea Party ties, making tonight's appearance notable.

"Six years ago, when we launched this organization," he said in his uneasy and halting style, "we envisioned a grassroots organization of Americans from all walks of life banded together to advance economic freedom and prosperity by limiting government's reach, and curbing government's growth, reining in government spending. …We envisioned an organization that would boldly and unapologetically defend the free-market economy. The Tea Party is Koch's dream come true; the Washington summit, he told attendees, was designed to train grassroots activists in the defense of the "free-market economy" and "to send a message to the political class that these activists [are] energized and watching" its members.

The Capitol Hill Franchise

The self-appointed head of Tea Party, Inc.'s Capitol Hill division is the junior senator from South Carolina, Jim DeMint. DeMint is the top Senate recipient of donations from the Koch Industries' PAC, reeling in $22,000 in the current election cycle for a race he stands virtually no chance of losing. The Kochs' PAC is also the number three donor to DeMint's PAC, the Senate Conservatives Fund, which he spends on other races.

In DeMint, the Kochs found a politician who will make no compromises on their far-right agenda, favoring tax cuts and opposing health-care reform, green energy, labor unions and regulation of any kind. Last year, DeMint received the Americans for Prosperity Foundation's George Washington Award, bestowed upon the senator by Koch himself. Speaking at the organization's summit in August, Koch said DeMint "has consistently stood for freedom against this big-government agenda." In backing DeMint's power play against leaders of the Republican establishment, particularly his challenge to the power of Senate Minority Leader Mitch McConnell, the Kochs stand poised to push those establishment leaders into the same uncompromising positions.

Echoing DeMint's agenda are Rep. Michele Bachmann, a Minnesota Republican who, in July, founded a Tea Party Caucus in the House of Representatives, and Rep. Mike Pence, a Republican from Indiana, who is House GOP conference chairman and a charter member of the new caucus. Both are Tea Party favorites, and Bachmann is a regular speaker at Americans for Prosperity events. At the Americans for Prosperity Foundation's RightOnline conference, held in Las Vegas in July, Pence used a luncheon address to make the case for melding the free-market Tea Party agenda with the values of the religious right, while Bachmann entertained a banquet crowd with herplan to phase out Social Security.

FreedomWorks has its eye on a political transformation in the Senate, and is closely allied with DeMint, whose PAC is spending hundreds of thousands of dollars on behalf of many of the same Tea Party-backed Senate candidates endorsed by the FreedomWorks PAC, including Sharron Angle (currently in a tight race against Senate Majority Leader Harry Reid), Rand Paul in Kentucky, Marco Rubio in Florida, and Utah's Mike Lee. (Bachmann's Tea Party Caucus was announced the day after Paul, addressing FreedomWorks activists on a July 13 conference call, suggested a Tea Party caucus for the Senate.) Each of these candidacies began as primary challenges to establishment Republicans endorsed by McConnell.

In September, Huffington Post political columnist Sam Stein cited a Democratic strategist who said that by the midterms' close, Americans for Prosperity will have spent $45 million on organizing "voter education" and get-out-the-vote activities that test the limits of legal nonprofit expenditures. Actually, Americans for Prosperity president Tim Phillips told me his plan was to raise and spend even more, though he wouldn't name a figure. Even the lesser amount, according to tax filings, would represent a tripling of its funds since 2008.

FreedomWorks also hopes to triple its revenue, from $3 million in 2008, according to tax filings, to an anticipated $10 million this election cycle, according to Adam Brandon, the group's communications director. In a fundraising video sent by FreedomWorks to new members, leaders announce that every dollar raised will be matched by an unnamed donor. Both Brandon and Koch Industries spokesperson Melissa Cohlmia say that FreedomWorks has received no funding from the Kochs or their foundations since 2004, so there is likely another high-roller involved. But neither FreedomWorks nor Americans for Prosperity,nor its foundation, is required by law to disclose its donors and -- like advocacy organizations across the political spectrum -- they don't.

At any rate, the vast expenditures on organizing have worked in at least one way: FreedomWorks' membership had reached nearly 1.1 million by mid-October, according to the group's Web site ticker. Americans for Prosperity claims 1.5 million members and chapters in 31 states.

Both groups excel at training activists and spreading the word for Tea Party candidates, who have raked in a significant portion of their campaign donations from small donors, according to the Center for Responsive Politics. When Angle's campaign announced earlier this month that it had raised a whopping $14 million since June, spokesperson Jarrod Agen told the Washington Post that 96 percent of those donations were $200 or less. (At press time, neither Angle nor the FEC had released official filings.)

One “voter education” exercise I witnessed was the dispatch of participants in July’s RightOnline conference to canvass the Las Vegas suburbs, armed with a script about Harry Reid. “Reid voted for the failed $800 billion stimulus plan that has wasted our tax dollars on more government,” it read. “Reid’s policies will make government bigger, waste more money, drive up budget deficits and kill jobs.”

The canvassers had just heard Angle, Reid’s opponent, deliver the conference’s closing speech. But as they boarded vans for their deployments, they were reminded this was, of course, a nonpartisan exercise — since the Americans for Prosperity Foundation, a nonprofit, is forbidden from endorsing candidates.

The Money Men

The Tea Party’s two major patrons are fabulously wealthy. David Koch is heir to the fortunes of Koch Industries, described in 2008 by Fortune as the largest privately held corporation in the United States, and was ranked by Forbes as one of the world's richest people, with an estimated personal wealth of $17.5 billion. Rupert Murdoch, founder and CEO of News Corp -- ranked by Fortune as world's second-largest entertainment company -- was also rated by Forbes among the world's wealthiest, with personal wealth of $6.3 billion.

Koch Industries, with David as executive vice-president and his brother Charles as CEO, presides over a vast conglomerate of oil and gas interests, as well as holdings in timber and chemicals. Since the 1970s, the two men have funded and controlled a large network of right-wing institutions, launching the libertarian Cato Institute in 1977 and the Mercatus Institute in 1985, all of which advocate business deregulation under the rubric of "free markets."

Both cornerstones of Tea Party Inc. -- FreedomWorks and the two entities comprising Americans for Prosperity -- sprang from Koch's riches. FreedomWorks rose from the ashes of Citizens for a Sound Economy, an early Astroturf group and think tank he founded during the Reagan years to advocate for lower taxes, less regulation, and smaller government. CSE was rebranded as FreedomWorks in 2004, after a corporate-style merger with Empower America, founded by the late Republican Congressman Jack Kemp to limit government and privatize government services.

That same year, Koch rebranded CSE's foundation as the Americans for Prosperity Foundation and founded its sibling organization, Americans for Prosperity.[i] Koch hired the politically connected Tim Phillips to serve as president of both organizations. (Phillips is a business partner of former Christian Coalition director Ralph Reed in a political consulting firm, Century Strategies, which was implicated, but never charged, in the bribery scandal that sent Jack Abramoff to prison.)

Koch and his allies built the underpinnings for a movement not quite ready to be born. The absent ingredient was rage. But by 2009, with the collapse of the economy and the election of the nation's first African-American president, the supply chain of rage was complete, and the Tea Party came roaring to life. Rupert Murdoch gave the new movement legitimacy by means of sympathetic columns in the Wall Street Journal, boosterism from Sean Hannity and Glenn Beck and a regular media platform on Fox News Channel for Tea Party personalities and candidates. As Jane Mayer remarked in her New Yorker profile of the Kochs, the Tea Party had at last turned their private agenda into a mass movement.

The role of these groups in launching the movement is indisputable. In concert with Glenn Beck's 912 Project, FreedomWorks did the logistical organizing for the first Tea Party march on Washington, in September 2009. Beck launched the 912 Project on his Fox News Channel show, promoted the march on his show and mobilized for it through a social networking Web site built by his production company.

Since then, the groups have been tearing through the Murdoch-Koch agenda. Americans for Prosperity says it convened, through an offshoot, some 300 rallies against health-care reform, and once the healthcare bill was passed in March, the organization quickly moved to block cap-and-trade as a means of regulating carbon emissions. In fact, at an Americans for Prosperity Foundation conference I attended in Pittsburgh in August 2009, cap-and-trade was already being introduced as the next Tea Party battle. This is a longstanding priority for Koch Industries, a major polluter heavily invested in old energy technologies. In a March 2010 report, Greenpeace said that, over the years, the Koch brothers have "quietly funneled" nearly $50 million to "climate-denial front groups that are working to delay policies and regulations aimed at stopping global warming."

Wall Street Journal columnist Stephen Moore -- a member of the newspaper's editorial board and a former fellow at the Koch-funded Cato Institute -- told the gathering of Tea Party activists he thought global warming was "the greatest hoax of the last 100 years." He called the climate change agenda "not just evil, but…contrary to the free-market system that made this country great."

The Media Storm

It is not unusual for op-ed pages to reflect the bias of an outlet's owners. It is highly unusual, however, for news operations to engage in outright political organizing on behalf of a CEO's agenda. Yet that's just what certain Fox News hosts and Wall Street Journal columnists seem to be doing on behalf of Rupert Murdoch, who is opposed to regulation of any kind, hates taxes, and despises labor unions -- having famously broken unions at his UK newspapers.

News Corp's best-known personalities accomplish this by working hand in glove with the like-minded ideologues at Americans for Prosperity. Fox News hosts, along with Stephen Moore and fellow Wall Street Journal columnist John Fund, are regular speakers at conferences sponsored by the Americans for Prosperity Foundation. At the group's 2009 RightOnline conference, a third of the plenary speakers were News Corp writers and pundits, including Moore and Fund, as well as Jim Pinkerton and Michelle Malkin, who were paid Fox commentators at the time. Fox News personality John Stossel spoke against health-care reform at three rallies sponsored by Americans for Prosperity, while Sean Hannity, host of a prime-time Fox News show, live-broadcast Americans for Prosperity's 2009 Tax Day protest in Atlanta -- and the network preempted regular programming to present it. Moore and Fund also shill for the foundation's anti-regulatory "worker education" project, known as Prosperity101.

The door swings the other way as well. By means of his regular presence on Fox's airwaves and column at the FoxNation Web site, Americans for Prosperity vice president Phil Kerpen was instrumental in building the case against Obama green jobs adviser Van Jones, who was ultimately forced to resign his White House post.

At last year's RightOnline conference, I asked Americans for Prosperity president Tim Phillips if his group worked in partnership with News Corp, given the presence of so many of its personalities on the roster.

"Not at all, not at all," he replied with a laugh. "The fact is, the Wall Street Journal's my favorite newspaper; I love those guys. I like what they write. I look at Steve Moore and John Fund, and those are two of the smartest guys. But there's no partnership -- financially, understood, or anything else."

News Corp enjoys a similarly friendly -- if similarly informal -- relationship with FreedomWorks. In early October, FreedomWorks was promoting its Take America Back campaign -- a get-out-the-vote effort -- with a photo of Glenn Beck standing before his iconic blackboard. The FreedomWorks' Web site also featured an audio message from Beck: "I've been sayin' it for weeks. If you care about freedom, you must get involved. If you really want to end tyranny in Washington, you must get involved. And the group you need to find out about is FreedomWorks. … Take America back -- FreedomWorks.org." Just days ago, Beck's image was used in a splash screen to solicit contributions for FreedomWorks' PAC.

To Rupert Murdoch, Glenn Beck is much more than a broadcaster; he's Murdoch's lead community organizer. His show has leached revenue since the civil rights group Color of Change launched a boycott of his advertisers, reportedly chasing away at least 100. But his act is far more profitable to News Corp in another way -- by creating the conditions for a stripping away of federal regulations that limit the growth of News Corp and its bottom line. And so Beck's rants become more shrill and his claims more preposterous, whether he is stoking racial fears or recalling that old bogeyman threat of looming socialism -- a theme straight out of the John Birch Society, of which the Kochs' father, Fred, was a founding member.

The Campaigns

In Washington, D.C., Adam Brandon, FreedomWorks' communications director, is bubbling over with excitement at the end of a long, hot July day. "I'm racking up the frequent flyer miles," he says of his relentless weekend trips to train Tea Party activists in how to chalk up wins for candidates FreedomWorks' PAC has endorsed.

FreedomWorks doesn't aim to elect just any Tea Party candidate to office: as with DeMint's Senate Conservatives Fund, its endorsements seem designed to undermine the current GOP establishment, push the party rightward and further an anti-regulatory agenda. Well before others joined in, FreedomWorks embraced far-right insurgencies, notably those of Marco Rubio and Rand Paul. Both endorsements put FreedomWorks at loggerheads with Sen. McConnell, whose candidates -- including his hand-picked protégé in his home state of Kentucky -- were vanquished.

DeMint's PAC spends hefty amounts on behalf of its endorsed candidates, including $447,000 for Rubio and $95,000 for Paul ($95,000). FreedomWorks matches DeMint's cash with ground forces. The PAC runs an online "service center," where, according to FreedomWorks president Matt Kibbe, Tea Partiers "get the tools they need to turn a protest into a sophisticated, turn-out-the-vote effort." Those tools include walking maps, door-hangers, talking points, and "a sophisticated phone-banking system that is going to allow you to make calls in all of our targeted races." If you're an activist in Wisconsin, FreedomWorks can set you up to turn out voters for Rand Paul in Kentucky. Combined, these Tea Party outfits have proven that they have the potential to decide elections.

When I asked whether FreedomWorks' endorsements were chosen in part to undermine McConnell, Brandon declined to answer directly, but his response revealed the intimate ties between his outfit and DeMint's. DeMint has been stalwart on behalf of FreedomWorks' positions, Brandon explained. These include opposition to healthcare and energy reform and labor unions. But DeMint needs more people like him in the Senate in order to create something of a caucus -- "a new power center," Brandon called it.

Their combined might was recently on display in Utah, where DeMint and FreedomWorks joined forces to replace incumbent Republican Senator Bob Bennett. DeMint's PAC and FreedomWorks' PAC each rank among the top twelve donors to Bennett's challenger, Tea Partier Mike Lee.

In Utah, candidates must win delegates at their state party convention; primaries take place only if a run-off is needed. So FreedomWorks helped pack the convention with Tea Party-allied delegates, and Lee showed convention-goers a video endorsement by DeMint. Bennett lost his seat that day, coming in third with 26 percent of the vote. (The remainder was split between Lee and another Tea Party candidate.) Lee prevailed in the subsequent two-way primary, with more help from DeMint's PAC, which has spent $315,000on his behalf, including $184,000 in so-called "independent expenditures," according to FEC filings.

Suppliers and Subsidiaries

While Americans for Prosperity, FreedomWorks and News Corp run the boardroom of Tea Party, Inc., a growing number of national organizations have sprung up to provide a range of services; call them the suppliers. Some have similar names -- Tea Party Patriots, Tea Party Nation, Tea Party Express -- though they compete ferociously. Reed's Faith & Freedom Coalition provides a unique service to Tea Party Inc.: the promise of delivering religious-right voters to its candidates. Like the big players, these groups, too, are run by former Republican officials or political consultants.

Tea Party Patriots, perhaps the most substantial of these groups, was born of FreedomWorks, as co-founder Jenny Beth Martin points out in a FreedomWorks video, and its state chapters do the on-the-ground organizing for FreedomWorks' agenda. Martin, a former Republican political consultant in Georgia, coordinates the group with Mark Meckler, a Northern California attorney who previously ran an online political consultancy with GOP ties.

More flamboyant is Tea Party Express, another name for Our Country Deserves Better, an anti-Obama PAC founded by Howard Kaloogian, the California attorney who orchestrated the recall of Gov. Gray Davis. The group has already weathered controversy -- its spokesperson, radio talk-show host Mark Williams, was forced to exit the organization in July after authoring a demeaning satire of NAACP president Ben Jealous. But Tea Party Express has nevertheless raised $6.6 million this election, according to recent FEC data, making it, in the estimation of the New York Times, "the single biggest independent supporter of Tea Party candidates." And the group has racked up primary victories for Tea Party insurgencies such as Christine O'Donnell in Delaware, who benefitted from $250,000 in Tea Party Express ad buys; Joe Miller in Alaska, who beat incumbent Lisa Murkowski with the aid of $550,000 from the group; and Angle, who has enjoyed nearly $1 million in "independent expenditure" advertising by the group, according to FEC filings.

"Sharron Angle, in my opinion, wouldn't have won [the Republican primary] without the Tea Party Express," California Republican consultant and Tea Party organizer Eric Odom told participants in this year's RightOnline conference.

Reed's Faith & Freedom Coalition, which seeks to unite the Tea Party and the religious right, is provides a unique service to Tea Party Inc.: delivery of religious-right voters to its candidates. On September 11, Reed brought together a few hundred activists for a strategy briefing at Washington, D.C.'s Mayflower Hotel. The event featured speakers from the GOP's glory days, from Karl Rove to Newt Gingrich.There Reed instructed activists on how to "move the needle" when the polls are against you.

"We're building databases of faith-based and fiscal conservatives in every key congressional race, U.S. Senate race or governor's race, and a lot of targeted state legislative races," Reed explained. "Those voters are going to be contacted an average of seven times.We're gonna mail ‘em, we're gonna phone ‘em, if we have an e-mail, we're gonna e-mail ‘em, if we have a cell phone number, we're gonna text-message them.And at the end, we're gonna knock on their door."

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Reed's big announcement of his new Faith & Freedom Coalition took place in August 2009, at an Atlanta rally against health-care reform convened by Americans for Prosperity, the organization fronted by his old business partner, Tim Phillips. FreedomWorks chairman Dick Armey delivered the keynote address, and Fox News contributor Herman Cain made the business case against health-care reform.

Phillips couldn't make it to Atlanta that day. He was stuck in Pittsburgh, at his RightOnline conference, rubbing elbows with the stars of Rupert Murdoch's News Corp.

Murdoch: 'I'll stop Google taking our news for nothing'

Means he'll probably go after blogs, too.

Rupert Murdoch defiant: 'I'll stop Google taking our news for nothing'
Paul Harris in New York
guardian.co.uk, Wednesday 7 April 2010 07.52 BST

Rupert Murdoch has launched a spirited defence of putting up paywalls around his newspaper websites, while embracing the game-changing potential of Apple's iPad. The News Corp chairman hailed the new device as a possible saviour of the newspaper industry.

Murdoch renewed his attacks on search engines, such as Google, whom he accused of stealing journalism from traditional media outlets. He told a National Press Club event at George Washington University that the newspaper industry had to stand up for itself and charge for content while using copyright law to defend its journalism from being used without permission.

"We are going to stop people like Google or Microsoft or whoever from taking stories for nothing … there is a law of copyright and they recognise it," Murdoch told a packed audience of students, journalists and other media professionals.

He said search engines had tapped into a "river of gold" by aggregating content but that the days of free news had to come to an end. "They take [news content] for nothing. They have got this very clever business model," he said.

In June, Murdoch's British titles the Times and Sunday Times will join joining his business title, the Wall Street Journal, behind a paywall.

However, some critics say consumers are now too used to getting online news for free and will not pay subscriptions in big enough numbers to form a viable business model for quality journalism. Murdoch dismissed this fear, saying consumers could be forced to change their habits. "When they have got nowhere else to go they will start paying. If it is reasonable. No one is going to ask for a lot of money," he said.

Murdoch also fired a shot at the New York Times – a bête noire of Murdoch's and the Journal's main rival – by saying its paywall plans were halfhearted and needed to be more restrictive.

"They don't seem to be able to make up their mind. They will have opposition internally from some of their journalists, especially their columnists," he said."To really make it work they have got to put a paywall up. I think most newspapers in [the US] have got to have a paywall."

Advocates of free newspaper websites often accuse Murdoch of being a technophobe, but the Australian media mogul was happy to embrace the iPad, launched last Saturday.

During the interview, with journalist Marvin Kalb, he picked up an iPad to demonstrate how to navigate the Journal's website. He said the iPad could be the saviour of newspaper journalism, albeit in electronic form, not print.

"I got a glimpse of the future last weekend with the Apple iPad. It is a wonderful thing," he said. "If you have less newspapers and more of these … it may well be the saving of the newspaper industry."

Murdoch was challenged in the interview – and by many in the audience – over the conservative bias of his Fox News cable television channel. The audience tittered when Murdoch said he thought the channel's news coverage had no political bias. "We have both sides. We have Democrats and Republicans, libertarians and whatever," he said.

Asked to name a single Democrat-leaning Fox commentator – alongside such conservative names as Glenn Beck, Sean Hannity and Bill O'Reilly – he struggled openly to remember one. "I wish I could tell you a couple of names. But they are certainly there," he said. He eventually settled on the Fox host Greta van Susteren, whom he said was "close" to the Democratic party.