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TNA2712June 20 Shale Gate

TNA2712June 20 Shale Gate

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WikiLeaks Confirms North American Integration • Fred Koch: Oil Man Against Communism

June 20, 2011

www.TheNewAmerican.com

ThaT Freedom Shall NoT PeriSh
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The Coming
A technological breakthrough is sparking a new energy revolution in natural gas.

Shale Gale

The Anti-Federalist Papers
A look at the clashes and compromises that gave birth to our form of government. (2003ed, 406pp, pb, $7.99) BKAFP

The Federalist Papers
A brilliant defense of the Constitution of the United States by Alexander Hamilton, James Madison, and John Jay. (1999ed, 606pp, pb, $6.99) BKFP

“Local government in colonial America was the seedbed of American constitutionalism.” So begins the introductory essay to this landmark collection of 80 documents created by American colonists that are the genesis of American fundamental law and constitutionalism. (1998, 396pp, pb, $14.95) BKCOAC

Colonial Origins of the American Constitution

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Published in 1803 by a distinguished patriot and jurist, View of the Constitution of the United States represents the earliest extended commentary on the U.S. Constitution and Bill of Rights. Written from the perspective that the federal government is an agent of a sovereign people, Tucker’s work continues to add to our understanding of the Founding Fathers’ original intentions. (1999ed, 478pp, pb, $14.95) BKVCUS

View of the Constitution of the United States

Consists of extended quotations from the essays, letters, and pamphlets of influential supporters of the proposed constitution under the three general headings of “The Necessity of Our Union,” “Energetic but Limited Government,” and “Popular Government and Civic Virtue.” (1998ed, 523pp, pb, $17.95) BKFC

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Carbon Dioxide and the “Climate Crisis”

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10

Vol. 27, no. 12

June 20, 2011

Cover Story
EnErgy

10 The Coming Shale gale

16 natural gas — yours for the Fracing

by Ed Hiserodt — Wresting natural gas from pockets a mile underground promises abundant, clean fuel for a century or more.

16
Chesapeake Energy

FeatureS
nOrTh AmEriCAn UniOn

21 WikiLeaks Confirms north American integration
by Alex Newman — When U.S. elites were caught creating a regional government with Mexico and Canada, dubbed the “North American Union,” they denied it. WikiLeaks shows they lied.

inTErViEW

27 Freedom’s Forefront
BOOk rEViEW

Interview of Larry Greenley by Patrick Krey

31 his Will Be Done

by Jack Kenny — Supreme Court Justice William Joseph Brennan, Jr. set out to remake American jurisprudence to reflect his own sense of right and wrong — and he was successful.

hiSTOry — AmEriCAniST EnTrEprEnEUrS

35 Fred koch: Oil man Against Communism

ThE LAST WOrD

44 Default Lies not in Our Stars but in Ourselves
by Charles Scaliger

DepartmentS
5 Letters to the Editor 33 The goodness of America 7 inside Track 9 QuickQuotes 19 The right perspective 40 Exercising the right 41 Correction, please!

35

Liberty News Network

by Charles Scaliger — Fred Koch, the founder of Koch Industries, experienced abuses by industries large enough to run roughshod over others and by a communist government, and he fought back.

27

31

COVEr Source

AP Images

Designed by Joseph W. Kelly for The New AmericAN

21

Nick Schoonover

by Ed Hiserodt — Natural-gas production is now booming, thanks to new methods of obtaining gas from shale stone.

Spread The Word

Mix or Matc h for Spe cial Quanti ty Discou nts

Wisconsin erupts : ground Zero for national Movements Wisconsin, like many other states, is broke, largely because of spending on the salaries, pensions, and benefits of governmentunion workers. But the union workers are adamant that the present system is off-limits in terms of balancing the state’s budget. (March 21, 2011, 48pp) TNA110321 What Has the Mission Accomplished? After eight years, the Iraq War has cost hundreds of billions (and perhaps trillions) of dollars, as well as thousands of American lives. What have we — and the Iraqi people — gained? (April 18, 2011, 48pp) TNA110418

Project gunrunner The federal Bureau of Alcohol, Tobacco and Firearms purposely sold guns to Mexican drug cartels, even though no needed intelligence could be gained by doing so or arrests of kingpins be made. (June 6, 2011, 48pp) TNA110606

The Coming Shale gale
New drilling technologies have made available enough natural gas in the United States to last over a century. Though natural gas is a clean-burning fuel, environmentalists are still trying to end drilling. (June 20, 2011, 48pp)
TNA110620
ToTAl PrICE

China: The new Investment Savior? U.S. Governors are practically pleading with Chinese companies to operate in the United States, but the goals and operations of Chinese companies are set by the Communist Party in China. (May 23, 2011, 48pp) TNA110523

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Wisconsin erupts What Has the Mission Accomplished? The Coming Shale gale Project gunrunner China: The new Investment Savior?
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LETTERS TO THE EDITOR
Publisher John F. McManus Editor Gary Benoit Senior Editor William F. Jasper Associate Editor Kurt Williamsen Web Editor Warren Mass Contributors Bob Adelmann Dennis J. Behreandt Raven Clabough Selwyn Duke Thomas R. Eddlem Gregory A. Hession, J.D. Ed Hiserodt William P. Hoar Jack Kenny R. Cort Kirkwood Patrick Krey, J.D. Alex Newman Llewellyn H. Rockwell, Jr. Joe Wolverton II, J.D. Art Director Joseph W. Kelly Research Bonnie M. Gillis Marketing Larry Greenley Public Relations Bill Hahn Advertising/Circulation Julie DuFrane

Fukushima Fallacies
My disappointment in anticipating Ed Hiserodt’s article “Fukushima: Just How Dangerous Is Radiation?” (May 9 issue) is well founded. I knew someone who died of radiation poisoning from viewing A-bomb testing. She died of cancer about a decade later. I have met the Chernobyl children, all sick with radiation poisoning. Though I agree with much in The New AmericAN, I don’t agree with Hiserodt. A few years ago my aunt died of cancer. She was nauseated and lost her hair from radioactive medicine, and it did not cure her cancer. I seriously doubt “the odds are a million to one against knowing anyone who died or was sickened by radiation.” Regarding the survivors of Nagasaki and Hiroshima, who Hiserodt claims have been outliving their non-radiated peers, there is much research done concerning survivors of the 1945 bombings in Hiroshima and Nagasaki. Many survivors never came forward for fear of being denied health insurance due to the “pre-condition” of radiation exposure. The article by Hiserodt is poorly researched. Go to the book Atomic Radiation: A Half Century of Studies from Hiroshima and Nagasaki, by William J. Schull. Concerning the low-dose radiation question, “it all depends on the model one picks” regarding its harm or benefit, so Hiserodt’s conclusion is invalid. As to Hiserodt’s claim that the children of the Japan survivors haven’t suffered any noticeable mutations, John D. Bimbrid, Ph.D. says, “Most mutations are recessive and require several generations to detect. The second generation of Japanese offspring is just now appearing.” Hiserodt’s conclusion that no mutations occur is consequently invalid. Go to auisisllc.com to “How Radiation Can Affect You” for a better idea. Go to pketko.com for a description of those affected by the Hiroshima A-Bomb and accurate statistics. The New York Times’ “Study of Atomic Bomb Victims in Japan” lists many longterm effects. This study was done by Japanese professionals themselves and contradicts Hiserodt. It is interesting that Marie Curie is mentioned in the article. Go to nobelprize.org, under Marie and Pierre Curie, to read about what happened to her and her husband from radiation. He wrapped a sample on his wrist

for 10 hours a day for 52 days. He attained a permanent gray scar. Marie’s fingers were scarred and cracked from radium. Marie died of leukemia at age 67. Cancer tends to be dormant and then activates. Who wants to get it, even after 30 years? Plus, I must assume that Hiserodt closed his narrow mind to the newscasts that reported 17 ill from radiation in Japan. elise s. hougeseN Grass Valley, California The author: It is difficult to respond to your letter because virtually every sentence is either totally wrong or completely off-subject. First, you aver that you knew someone who died of radiation poisoning a decade after viewing A-bomb testing. Amazing. Tens of thousands of service personnel witnessed A-bomb tests with no increase in cancer risk, but your friend positively died from viewing them. I don’t believe that. Then you say you have met the Chernobyl children, all sick with radiation poisoning. No you didn’t. None of the populace surrounding Chernobyl had even a fraction of the exposure required for any type of radiation sickness. You may have seen photos by anti-nuclear groups showing deformed children, but you have not taken the trouble to determine their authenticity. You refer to your aunt’s cancer where high-dose radiation was voluntarily used to destroy malignant cells. That is as far as you can get from the subject of low-dose radiation. You suggest my article was poorly researched and that I should look into the work of William J. Schull. In my book Underexposed: What if Radiation Is Actually Good for You?, which I spent two years researching, I cite an article by Kato and Schull in Health Physics, 1987, showing that Japanese cancer mortality was lowest for those who were exposed to 8,000 mrem of radiation — about 84 years of current Tokyo annual radiation — delivered in about a second.  And if you are going to direct me to a source for radiation information, please don’t send me to a site by Hiroshima Jr. and Sr. high-school students.
Send your letters to: The New AmericAN, P.O. Box 8040, Appleton, WI 54912. Or e-mail: editorial@thenewamerican.com. Due to volume received, not all letters can be answered. Letters may be edited for space and clarity.
5

Printed in the U.S.A. • ISSN 0885-6540 P.O. Box 8040 • Appleton, WI 54912 920-749-3784 • 920-749-3785 (fax) www.thenewamerican.com editorial@thenewamerican.com Rates are $39 per year (Hawaii and Canada, add $9; foreign, add $27) or $22 for six months (Hawaii and Canada, add $4.50; foreign, add $13.50). Copyright ©2011 by American Opinion Publishing, Inc. Periodicals postage paid at Appleton, WI and additional mailing offices. Postmaster: Send any address changes to The New AmericAN, P.O. Box 8040, Appleton, WI 54912. The New AmericAN is published twice monthly by American Opinion Publishing Inc., a wholly owned subsidiary of The John Birch Society.

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Inside Track
Fed insider herman Cain is not your Stereotypical Tea partier
GOP presidential candidate and former Godfather’s Pizza CEO Herman Cain is touted by the media as a “Tea Party favorite.” Yet his positions on government bailouts and the Federal Reserve have certainly been at odds with where many tea partiers stand. In October 2008, Cain blasted “free market purists” in an opinion column for opposing the $700 billion banker bailout known as TARP. “Wake up people! Owning a part of the major banks in America is not a bad thing,” he wrote, claiming opposition to the plan stemmed from “economic illiteracy.” In the piece, Cain praised the actions of the Federal Reserve and the Treasury while saying “Congress needs to just shut up” for the “collective actions to work.” Cain served as the chairman of the Kansas City Federal Reserve Bank during the mid ’90s, emerging as a vocal defender of the central banking system. During a radio interview on the nationally syndicated Rusty Humphries Show, he insisted that the Fed is not unconstitutional because it was created by an act of Congress. Though Cain acknowledged that he doesn’t agree with all of the Federal Reserve’s current policies, he said that the Fed cannot be done away with because: “What would you replace it with?”

Herman Cain

Cain is also vehemently opposed to a congressional audit of the Fed that would allow Congress and the American people to find out what exactly is going on at the central bank. He suggested contacting one of the Fed’s “PR people” if Americans are curious, saying an audit is “not necessary” and that calls for Fed oversight result from ignorance. Eventually, Cain said, he would support a gold standard managed by the Fed. But first, he said, the national debt needed to be reduced.

Why Did gOp house members Arrange for a Symbolic Debt Limit Vote?
It was not surprising that the symbolic May 31 House vote to raise the federal debt ceiling failed overwhelmingly. The bill, which would have unconditionally increased the debt limit by $2.4 trillion — the precise amount requested dave Camp (left), eric Cantor by the Obama adminis(center), and John Boehner tration — garnered only 97 Yea votes, all from Democrats. A combined 318 Democrats and Republicans voted Nay, and seven Democrats voted Present. There was political maneuvering all around. The bill was introduced by Rep. Dave Camp (R-Mich.), Chairman of the House TexT Ways and Means Committee, who then took to the floor of the House to denounce his own legislation, saying his bill “will and must fail … because it sends a clear and critical message that the Congress has finally recognized we must immediately begin to rein in America’s affection for deficit spending.” The Obama administration has for some time been requesting a vote on a “clean” bill such as this, so the GOP gave it to them. However, Republicans also handed their adversaries the means of escape in the process. First, they announced loudly that the vote was to be purely symbolic and that the bill would be defeated, even going so far as to call “Wall Street to assure them this was nothing more than theater,” according to Politico. Second, they brought the bill to a vote under a suspension of rules, meaning it would come to a vote quickly and with limited debate — but it would also need a two-thirds vote in favor to pass, something
www.theNewAmerican.com

that was most assuredly not going to happen with a GOP majority. Democrats were thus able to dismiss the vote as “a sham” (Connecticut Rep. John Larson), “demagogic” (Maryland Rep. Steny Hoyer), and “irresponsible grandstanding” (Maryland Rep. Donna Edwards) and to safely vote against it. Hoyer, the House Minority Whip, had, in fact, urged his fellow Democrats to vote against the measure, recognizing that its purpose was to make them vulnerable to attacks in “political 30-second ad[s].” Republicans may have had another ulterior motive in bringing this legislation to a fast vote: providing cover for their own members of Congress when it comes time to vote on whatever debt limit deal the House leadership works out with the Obama administration. Chad Pergram, blogging at FoxNews.com, theorizes: “By engineering a separate, unfettered vote that inevitably will fail, Republicans will have documented a vote where their members voted against hiking the debt ceiling. And if and when an agreement is reached later this summer and they vote yes, the GOP can then say to its base that it only voted for a debt limit increase because it simultaneously voted for steep spending reductions.” And so the debt ceiling kabuki continues. Both parties are committed to plunging the country ever more deeply into debt. The only question is how much they will claim spending is being cut when the inevitable deal is announced. House Speaker John Boehner (R-Ohio) is demanding cuts in excess of the debt limit increase, but he could easily spin, say, $3 trillion of supposed cuts over a 10- or 20-year period as a victory. Democrats could plausibly tell their base that they won the battle because most of those cuts have to be implemented by future Congresses and will, therefore, never see the light of day. Then, while both parties claim victory, taxpayers will go down to defeat once again.
7

AP Images

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Inside Track
Four-year patriot Act Extension passes Despite rand paul’s Efforts
Congress passed a four-year extension of three provisions of the Patriot Act May 26, despite a spirited Senate effort to derail the bill by Senator Rand Paul (R-Ky.), who proposed amendments to exempt Americans’ firearms records from the open-ended searches envisioned by the Patriot Act. The Senate approved the bill as part of the Small Business Reauthorization bill (S.990) by a vote of 72-23, and the House passed the bill by a vote of 250-153. While the final vote on passage was closer in the House of Representatives, as expected, the surprise was the spirited opposition made against Patriot Act renewal by the freshman Kentucky Senator. Paul held up the preplanned passage of the measure for several days, as he offered several amendments designed to ply Republican votes from the Patriot Act. In addition, he demanded a full debate upon the measure. Democratic Majority Leader Harry Reid promised this after the Senate voted to extend the Patriot Act by three months back in February, but tried to prevent a vote on Paul’s amendments during a very limited Senate floor debate. Paul got a vote on two of his amendments. His first amendment was essentially to ban the use of Patriot Act searches for American citizens’ firearms records without the Fourth Amendment’s protections of probable cause, warrants, and particularity. The Senate rejected that amendment by an 85-10 vote. Paul also offered an amendment to limit searches under the suspicious activity or “business records”  reporting provision to requests from law-enforcement agencies, which the Senate Rand tabled (killed) by a 94-4 vote. Paul The Senate soundly defeated Rand Paul’s amendments, but the Washington Post labeled the events as a “victory” for Paul and the Tea Party in that he was able to get a vote at all. “The victory for Paul wasn’t so much that either of his amendments would pass,” the Washington Post’s Felicia Sonmez wrote. “By wielding his leverage on the Patriot Act and securing votes on his amendments even as a longtime committee chairman was denied them, Paul eked out a small victory that could have implications for tea-party-backed senators in future legislative battles.”
AP Images

nrA Sells Out Second Amendment on patriot Act
The NRA sold out the Second Amendment during the Patriot Act fight, criticizing Senator Rand Paul’s amendment to exempt gun purchases from search provisions of the Patriot Act (see above) in e-mails to Congress while sitting on information showing the need for Paul’s amendment. The NRA sent at least two e-mails to Congress during the Patriot Act debate claiming that Rand Paul’s amendment was “poorly drafted” and stating that “the NRA could not support this.” The NRA e-mail, according to Reason magazine, claimed: “There have been no reports of the current PATRIOT Act being abused with respect to firearms records, however supporters suggested a far-fetched scenario in which every firearms sales record in the country … could be sought.” But on May 27, the very day after the Senate rejected Paul’s amendment and passed the Patriot Act renewal, the NRA’s own Institute for Legislative Analysis released a press release that proved Senator Paul’s warnings prescient. The NRA/ILA claimed: “Since the Bureau of Alcohol, Tobacco, Firearms and Explosives is responsible for enforcing federal gun laws, dealers and other federal firearm licensees typically contact that agency (or state or local police) when they encounter suspicious customers. So, it raised eyebrows when the FBI began circulating flyers in gun shops and ranges, encouraging owners of those businesses to report suspicious customers to ‘your local Joint Terrorism Task Force’ instead. The flyers first appeared in Connecticut, with a revised version appearing more recently in Utah.” The flyers demanded that gun clubs and gun shops submit a lawabiding gun owner’s information to the FBI’s Terrorism Joint Task
8

Force if a gun buyer had an “altered appearance from visit to visit (beard shaved off, hair color changed, etc.)” or “insists upon paying with cash” or had made “racist” or “extreme religious statements” or issued “vague or cryptic warnings.” In short, if an American buys a gun and gets a haircut, dyes his gray hair, or shaves his beard, his gun records will be sent to the task force for a terrorism investigation. Other “suspicious” activities also raise questions: If a person says homosexuality is a sin, is that an extreme religious statement that would lead to the FBI investigating him as a terrorist? If a person is against affirmative action, is that a racist sentiment that fingers him as a terrorist? The FBI flyer was clear that the fact that the gun buyer was an innocent, law-abiding citizen was no excuse for a gun shop not to send the gun records to the FBI: “Some of the activities, taken individually, could be innocent and must be examined by law enforcement professionals,” the flyer demanded. While the NRA did not say when it obtained information about the FBI/Joint Terrorism Task Force flyers sent to gun shops, the phrasing on the press release does suggest they possessed them before the Patriot Act vote: “The flyers first appeared in Connecticut, with a revised version appearing more recently in Utah.” n
tHE NEW AMErIcAN • JuNE 20, 2011

QuickQuotes
States putting Teeth in Voter identification “If you have to show a picture ID to buy a Sudafed, if you have to show a picture ID to get on an airplane, you should show a picture ID when you vote.” As she signed a bill requiring showing an ID in order to vote, South Carolina Governor Nikki Haley had her state become one of 12 with such legislation already on the books. neoconservatives Condemned “In conclusion, the neoconservatives are the false prophnikki ets of Americanism, and neoconservatism is America’s Haley Trojan Horse.” In his 300-page book Neoconservatism: An Obituary for an Idea, written with Yaron Brook, Clemson University Professor C. Bradley Thompson exposes the dangers of the movement that has steered so many conservatives away from the principles that have undergirded America. indiana Cancels Funding for planned parenthood “It’s morally wrong to take the taxpayer dollars of millions of pro-life Americans and use them to subsidize the largest abortion provider in America.” While the federal government is taking steps to impede Indiana’s decision to cease funding Planned Parenthood, Congressman Mike Pence spoke out in favor of what his home state has done.
AP Images AP Images AP Images

militant Shiite Cleric Still Targeting U.S. Forces in iraq “Yes, we are still resisting and striking bases, troops and vehicles, as long as they are in Iraq. And there is no doubt with that. It’s an honor for us.” Long an intense opponent of the U.S. presence in Iraq, anti-American cleric Moktada al-Sadr leads a militia army that continues to attack American forces.
Mike Pence

Candidate romney insists his massachusetts plan Differs From ObamaCare “Our plan was a state solution to a state problem, and his was a power grab by the federal government.” After championing a compulsory healthcare law in his home state, GOP candidate Mitt Romney is having difficulty attacking President Obama’s plan, which many see as similar to Romney’s plan. Ohio Congressman Considering a run in Washington State “My district appears to be on the block, so I am looking at options, and I am not limiting those options to Ohio.” Census-driven redistricting will cost Ohio two seats and add one for Washington, so veteran Ohio Congressman Dennis Kucinich, who expects that his current Ohio seat will be cut, has journeyed to the Evergreen State to explore the possibility of representing a new district in what would be, for him, a remarkable geographical switch.

dennis Kucinich

Economist Sees Deliberate Design Behind Economic Woes “If one wants to prevent history from running its present, foreseeable course to unprecedented economic disaster, then it is indeed imperative to arouse public indignation by exposing, relentlessly, the evil motives and machinations of those power elites, not just of those working within the state apparatus, but in particular also those staying outside, behind the scenes and pulling the strings.” Noted free-market economist Hans-Herman Hoppe has set himself apart from many colleagues who refuse to acknowledge that there is deliberate destructiveness affecting the U.S. dollar and the U.S. economy. n — compiled by JohN F. mcmANus
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EnErgy

the coming

ShaleGale
Nick Schoonover

Recently considered to be waning, natural-gas production is now booming, thanks to new methods of obtaining gas from shale stone. But environmentalists want to end the drilling.
by Ed Hiserodt

he oil and natural gas we rely on for 75 percent of our energy are running out,” warned the President in a televised speech on energy policy. And because we are running out, “we must prepare quickly” for a transition “to strict conservation and to the use of coal and permanent renewable energy sources, like solar power.”
10

“T

Of course, the President who said this was not Barack Obama. (Could you imagine Obama calling for a transition to coal?) The President was Jimmy Carter — on April 18, 1977. In the same speech, Carter also said that “in spite of increased effort, domestic production has been dropping steadily at about six percent a year.” Regarding oil in particular, he warned that if consumption continued to rise at the same five percent annual rate it had in the past,

“we could use up all the proven reserves of oil in the entire world by the end of the next decade” — that is, by the end of the 1980s. Not only have we not run out of either oil or natural gas, but in the case of natural gas, America’s “proved reserves” have actually risen significantly since 1977. According to the Energy Information Administration (EIA, a part of the U.S. Department of Energy), the United States possessed 207 trillion cubic feet of (dry)
tHE NEW AMErIcAN • JuNE 20, 2011

natural gas in 1977, as compared to 272 trillion cubic feet in 2009. How could the nation’s proved reserves go up instead of down, despite all of the natural gas that has been consumed since 1977? Part of the answer is the discovery of new fields. But another part of the answer is changing economic and technological conditions that have made it profitable and practical to recover natural gas that otherwise would have been left in the ground. The “proved reserves” figures reported by the Energy Information Agency are a relatively small part of America’s naturalgas resource base, which has increased dramatically in recent years. On April 27 of this year, the nonprofit Potential Gas Committee, which is comprised of a group of experts in the field, estimated the U.S. future gas supply at 2,170 trillion cubic feet — enough natural gas to satisfy America’s consumption for 100 years, and a huge 42 percent increase over the committee’s assessment just four years earlier. Dr. John B. Curtis, the Potential Gas Committee’s spokesman as well as professor of geology and geological engineering at the Colorado School of Mines, noted that the assessment “reaffirms the Committee’s conviction that abundant, recoverable natural gas resources exist within our borders … and in all types of reservoirs — from conventional, ‘tight’ and shales, to coals.” Shale-gas resources, in particular, have skyrocketed and are now being tapped commercially. This emerging natural-gas gale is being powered by rapidly developing technologies of drilling and methods to convert the underground resources into economic and efficient forms of fuel. It is impossible to predict a limit to this energy boon, which is now just several years in the making. The technological breakthrough sparking this energy revolution is the combination of horizontal drilling and hydraulic fracturing known as “fracing” (pronounced FRăK-ing). Born in the Barnett Shale of North Central Texas in 2003, it has spread across the United States and is now the norm in most natural gasproducing areas of the world. It is used to force large amounts of methane — 85 percent of what is referred to generally as natural gas — out of tight shale formations that were hitherto considered economically unviable.
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Total Potential Resources (Mean Values, Tcf) Coalbed gas resources Traditional gas resources (conventional, tight, shale)
shale gas, 686.6 Tcf (m.l.) shale gas, 615.9 Tcf (m.l.)

(shale gas assessed but not reported separately) shale gas, ~200 Tcf (m.l.)

Data source: Potential Gas Committee (2011)

pgC resources: This graph from the U.S. Potential Gas Committee illustrates the increase in potential gas resources resulting from the ability to tap shale gas.

Columnist James Delingpole of the London Daily Telegraph describes the potential of this innovation:

Imagine if we were to discover a new form of cheap, clean energy so abundant that it will provide our needs at least for the next two centuries, freeing us from the pervasive early 21st century neurosis of having to worry about “peak oil” or “conserving scarce resources,” causing a worldwide economic boom and with the added sidebenefit of creating more fertiliser so The Versatility of natural gas that we can not only heat our homes We are accustomed to the use of natural gas more cheaply than ever before but for residential and commercial heating, but also eat more cheaply than ever bemore than 20 percent of our electricity is fore. Imagine how Environmentalists also generated by this fuel. Its use has sevwould react if such a miracle came eral advantages, including a very low polinto being. Actually we don’t need to imagine, for the miracle is already here. On April 27 of this year, the nonprofit It’s called Shale Gas. It is important to point out that the focus of this article is shale gas, which is only one of many sources of natural gas. The list also includes wet and dry natural gas, coal bed methane, and methyl hydrates. Until a few

years ago, shale was under the radar and considered an unconventional resource. Today, the U.S. Energy Information Administration reports, “U.S. shale gas production more than tripled between 2007 and 2010, and its share of total domestic natural gas consumption increased from about 5 percent to over 20 percent” during the same period. While only one percent of production in 2000, shale gas is projected to make up 50 percent of all natural gas production by 2020.

Potential gas Committee, which is comprised of a group of experts in the field, estimated the U.S. future gas supply at 2,170 trillion cubic feet — enough natural gas to satisfy America’s consumption for 100 years.

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EnErgy
Shale gas is also promising in the crucial question of “energy independence.” According to the EIA, “U.S. net imports of natural gas have fallen for three consecutive years, due largely to growing domestic production from shale gas formations.” During the same time, domestic consumption continued its steady rise as prices kept on their downward slide. Until recently the outlook for widespread use of natural gas to fuel vehicles made it a weak contender in the struggle for national independence from foreign oil sources. Due to its low energy density, pressurized tanks capable of holding 3,000 psi (100 times your tire pressure) are necessary to store CNG. This is no problem for forklifts and limited-range vehicles like city buses. But it costs about $6,000 to convert a gasoline automobile to CNG, and only one manufacturer offers a CNGready automobile. Utah is attempting to solve the problem by a tax credit of up to $2,500 for converting to or buying CNG vehicles, while building state-owned CNG service stations. H.R. 1380, known as the NAT GAS Act, proposes to do a similar thing nationally. While once having over 180 predominantly Democratic cosponsors, several Republicans have bailed. Subsidized CNG is thankfully being viewed in light of the burgeoning national debt. Liquefied Natural Gas (LNG), reduced in volume by a factor of 600, is primarily used to facilitate shipment and has only found traction in very large vehicles having a platform for cryogenic storage.

Paul ehrlich believes, “giving society cheap, abundant energy would be the equivalent of giving an idiot child a machine gun.”
lutant level and the ability to be delivered efficiently by pipeline. It can also be utilized in jet engine-type generators capable of supplying electricity almost instantly. When the jet turbine generator is used, exhaust gases can be recovered to operate a thermal generator in a system known as combined cycle power plant (CCP) with an efficiency of about 55 percent, some 20 percent greater than a standard thermal plant. And for those who still have a concern about carbon dioxide emissions, a CCP produces 0.8 pounds of CO2 per kilowatt hour (kWh) of electricity, compared to 2.0 pounds for a new coal-fired plant. Abundant natural gas is very good news for efficient electrical generation.

gas to Liquid But times, they are achangin’. New research is making it possible to convert natural gas into transportation fuels. Known as the “gas to liquid” (GTL) process, this method converts methane into products such as 95-octane, diesel, and aviation fuels. Methane, the main component of natural gas, is composed of one carbon atom and four hydrogen atoms. GTL converts the small CH4

Lower 48 states shale plays
Montana Thrust Belt Cody Niobrara* Heath**

Bakken***
Williston Basin

Big Horn Powder River Gammon Basin Basin HilliardMowry BaxterMancos Greater Green Niobrara* River Park Basin Basin Manning Canyon Mancos Uinta Basin Piceance Basin Denver Basin Pierre Raton Basin

Michigan Basin Forest City Basin

Antrim

Appalachian Basin

Illinois Basin New Albany

Marcellus
Utica

Devonian (Ohio)

San Joaquin Basin MontereyTemblor

Hermosa Paradox Basin Lewis San Juan Basin

ExcelloMulky Cherokee Platform

Monterey Santa Maria, Ventura, Los Angeles Basins

Anadarko ArdBasin m Palo Duro Bend ore Ba si n Basin Permian Basin

Woodford

Fayetteville
Arkoma Basin

Chattanooga Conasauga

Black Warrior Basin

AvalonBone Spring BarnettWoodford Marfa Basin

Barnett
Ft. Worth Basin

FloydValley & Ridge Neal Province TX-LA-MS Salt Basin Tuscaloosa

Miles 0 100 200 300

Eagle Ford
Pearsall Western Gulf

HaynesvilleBossier
Shale plays Current plays Prospective plays Stacked plays Shallowest/ youngest Intermediate depth/ age Deepest/ oldest Basins Basins
* Mixed shale & chalk play ** Mixed shale & limestone play ***Mixed shale & tight dolostonesiltstone-sandstone

±

400

Source: Energy Information Administration based on data from various published studies. Updated: May 9, 2011

12

tHE NEW AMErIcAN • JuNE 20, 2011

End-of-year Natural Gas Wellhead Price
Dollars per Thousand Cubic Feet 10 9 8 7 6 5 4 3 2 2004 2005 2006 2007 2008 2009 2010 2011

Falling prices: New supplies of shale gas have brought down wellhead prices even as demand has risen to new highs.

molecule into a long chain molecule like C8H18 (octane) in a very short time, the way geologists believe the same process is done by heat and pressure over eons. The proprietary Shell Middle Distillate Synthesis (SMDS) process has already been proven on a commercial scale at a 14,700 barrel-per-day GTL plant in Malaysia. It is the model for the world’s largest GTL plant, now in its last stages of construction, known as Pearl GTL, where 260,000 barrels of oil-equivalent products are to be produced each day. At its construction peak, the $19 billion plant employed 52,000 workers. Dallas-based Synfuels claims it has an even cleaner and cheaper process than SMDS. Natural gas is “cracked” into acetylene (C2H2), followed by a catalytic process that converts 98 percent of the acetylene into ethylene (C2H4), which is then easily converted into gasoline, diesel, and jet fuel. Their process is dubbed ECLAIRS for Ethylene from Concentrated Liquidphase Acetylene — Integrated, Rapid and Safe. Synfuels now has a fully operational demonstration plant in Bryan, Texas, for the production of 95-octane fuel. Other major players in GTL development include Exxon (U.S.), Sasol (South Africa), Syntroleum (Tulsa, Okla.), Rentech (Los Angeles, Calif.), GeoGas (Santa Fe, N.M.), and Intevep (Venezuela). So why haven’t you heard about any of these or similar processes to convert natural gas into fuels? Does it seem strange
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that government is big on subsidizing wind and solar projects that have no bearing on “energy independence?” Why are there billions in government subsidies for grossly inefficient production methods of ethanol and bio-diesel that usually consume more petroleum products than they replace?

The naysayers There are three groups that wish to stifle this energy revolution. First are the competitors in the age-old clash that buggy whip manufacturers faced with the coming of the horseless carriage. Existing gas suppliers don’t exactly relish lower cost gas entering into their markets. Neither do coal suppliers, who understand the advantages of natural gas. Gas is delivered by pipeline, not unit trains with one hundred tons of coal per car making up one day’s supply for a coal-powered electric plant. Though the public wants clean-burning natural gas (without the ash and other combustion products inherent in burning coal), existing suppliers are not going to give up without a fight. Equally unnerving to competitors is the fact that the fracing process is making it possible for gas prices to drop even as demand reaches all-time highs. The graph on this page shows how wellhead prices have dropped steeply since the fracing process was instituted for shale plays. The Gas Technology Institute reports that demand for natural gas in 2010 was 22.1 trillion cubic feet — 10 per-

cent higher than the previous mark set in 2000. (Remember, prices are supposed to rise when the demand increases.) Additionally, a number of older coal plants across the country are to be retired soon, with natural gas poised to be competitive not only in construction costs but also in fuel expenses. The second group antagonistic to shale gas is an odd breed that has no desire to see the human condition improved but would prefer it to revert to earlier times when human and animal labor were the norm, not just fun at the dude ranch. They want fewer humans on the Earth since they consider mankind (except for themselves) as interlopers on a planet that should have only those creatures in the numbers that they see fit. They call themselves environmentalists. We are not referring to families that recycle their trash or to Prius owners. We’re referring to those such as Malthusian Paul Ehrlich, who believes, “Giving society cheap, abundant energy would be the equivalent of giving an idiot child a machine gun.” Ehrlich’s name may ring a bell, since he was involved in one of the most famous economic wagers in history. In 1980, he bet economist Julian Simon that the price of five commodities — chosen by Ehrlich and his advisor, John Holdren — would rise between 1980 and 1990 because the world was rapidly running out of resources. All five fell in price, and two of them dropped by more than 50 percent. Unfortunately, Ehrlich’s collaborator John Holdren is now Director of the White House Office of Science and Technology Policy, and his recent pronouncements would suggest he is still in step with his former comrade. The third group may appear to be reactive, yet understands well H.L. Mencken’s admonition: “The whole aim of practical politics is to keep the populace alarmed (and hence clamorous to be led to safety) by menacing it with an endless series of hobgoblins, all of them imaginary.” The politicos complete the circle. The power elites finance and encourage a supposedly grass-roots movement (e.g., the environmental lobby) that creates the appearance of popular support for their agenda and encourages the politicians to lead us to safety by passing laws the power elites want enacted.
13

EnErgy
County Landowners Group. Schoonover, formerly the IBM program manager and technical director on the guidance computer for the Saturn V and chief engineer on the AWACS computer that is still in use for the U.S. airborne warning and controls system aircraft, finally met his match when attempting to deal with the New York state legislature. How does one deal with irrationality and insanity? Asked who is behind the delays, Schoonover believes that the NYC wealthy want a pristine playground, and drilling would be a NIMBY (“Not In My Backyard!”) problem for them. He also points out that 84 percent of the legislature is from the city and couldn’t care less about yokel landowners in the outback. What is the excuse for politicians to continue the delays? To lead the populace to safety, of course. But what is the rationale? Last year, filmmaker Josh Fox released a documentary entitled GasLand, a blatant propaganda piece that purportedly exposes the evils of fracing. It contains video showing methane-entrained water from a kitchen faucet flaming in the sink. It was a complete hoax because there was no fracing or drilling anywhere near the flaming faucet. Ignored is the fact that shale formations are generally found 5,000 to 10,000 feet below the surface, with potable aquifers seldom deeper than 400 feet. (Methane in well water is not unusual when near-surface domes, known as “sand lenses” push gas upward into an aquifer. The flammable gas is unnoticed in the water because it is colorless, odorless, and tasteless, and is not considered a health concern.) Another hobgoblin used by the anti-fracing mob is that naturally occurring radioactive material (NORM) is brought up from drill cuttings, sent through treatment plants, discharged into rivers, and then supposedly contaminates downstream water supplies. This argument, however, didn’t hold water, as numerous studies have proven. For example, researcher Matt Ridley explained in his 2011 paper The Shale Gas Shock, “The Pennsylvania Department of Environmental Protection has tested the water in seven rivers to which treated waste water from gas wells is discharged and found not only no elevation in radioactivity but: ‘All samples were at or below background levels of radioactivity; and all samples showed levels below the federal drinking water standard for Radium 226 and 228.’”

The experts agree. not a single case of groundwater contamination from hydrofracing has emerged in a decade of studies by groups like the ground Water Protection Council, the Interstate Oil and gas Compact Commission, the ground Water Protection Council, the Joint Landowners Coalition of new York, and the U.S. environmental Protection Agency.
Stifling new york Shale A map of the shale plays (or fields), located on page 12, shows that the largest in the United States is the Marcellus Play that extends from New England to Tennessee, with a large part of it in the state of New York. Yet New York is the only state with significant resources not participating in the shale gale. TNA asked Bob Williams of Barnes-Williams Environmental Services (www.barneswilliamsenvironmental.com) his opinion of why this is happening. Williams, who has served on the expert panel of the 2010 Natural Gas Development Summit Meetings of the Joint Landowners Coalition of New York (JLCNY), replied:
Environmental extremists and wealthy foundations have succeeded in duping New York State politicians to delay development of the natural-gas industry. In total disregard for the abysmal fiscal condition of the state and continuing exodus of jobs, state lawmakers and their minions persist in throwing away tens of millions of dollars in tax revenues and thousands of high-paying jobs associated with the natural-gas industry. This unnecessary delay has stalled gas companies from committing physical and financial resources to New York State at tremendous cost to citizens, communities, schools, and charitable organizations. In addition, they are preventing landowners from harvesting the gas from beneath the lands they own and on which they pay millions of dollars in real estate taxes annually. And the delays continue with no end in sight. TNA also had the opportunity to interview Nick Schoonover, president of the Tioga
14

To sharpen or replace carbide or diamond impregnated drill bits, drillers must often remove and re-insert more than a mile of drill stem.
tHE NEW AMErIcAN • JuNE 20, 2011

Nick Schoonover

The biggest card environmentalists play is fear that fracing fluid will contaminate the water supply. There are two parts of this accusation to consider. First is the fact that fracing occurs some 4,000 feet below the lowest aquifer, leaving almost a mile of solid rock between the two, and the equipment’s concrete-enclosed steel casing is pressure tested to 9,000 psi to ensure no leakage into or out of the well. Second is the composition of the fracing fluid. Unlike natural aquifers that often contain significant amounts of such toxic minerals as arsenic and bromine, fracing fluid is more than 99.5 percent water and sand. Each energy company uses its own additives to the water and sand mixture. Much is being made that these are secret (and therefore harmful) chemicals. Indeed, the drilling companies do have their “formulas” for the best mix of chemical additives for particular sites, but the additives themselves are not secret. For example, they can be found on the website www. energyindepth.com or in Chesapeake’s May 2009 “Hydraulic Fracturing” fact sheet. By far the most egregious of these chemicals is the 0.123 percent additive of hydrochloric acid. This converts the normally placid fracing fluid into a raging acid bath with a pH between that of CocaCola and apple juice. The experts agree. Not a single case of groundwater contamination from hydrofracing has emerged in a decade of studies by groups like the Ground Water Protection Council, the Interstate Oil and Gas Compact Commission, the Ground Water Protection Council, the Joint Landowners Coalition of New York, and the U.S. Environmental Protection Agency. Yet Schoonover noted when fracing came before the New York Assembly, politicians turned it into a PR event, having their pictures taken with celebrities and showing Josh Fox’s propaganda piece GasLand. Schoonover saw professional banners, posters, and busloads of protesters, indicating a well-funded, wellorchestrated event that overwhelmed citizens who were looking for a redress of well-founded grievances. “Why,” he asked, “were they so passionate about stopping this?” His question is perhaps best answered by columnist Christopher Booker, reporting for the U.K.’s Daily Telegraph.
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Usable water to about 400 feet below surface

Steel surface casing encased in concrete Over 4000 feet separating water supply and fracing fluids

Steel production casing encased in concrete

Shale stratum is typically 300 feet thick

empire State Bldg.

Special attention is paid to ensure that fracing fluids do not contaminate groundwater. The concrete-encased casing is pressure tested before the fracing process begins.

He opines that environmentalists “hate [shale gas] to the point of hysteria because it offers the prospect of a cheap and abundant fossil-fuel that could keep industrial civilization going for hundreds of years, and is also, according to their prejudices, environmentally friendly, because its CO2 emissions are much less than those of coal or oil.”

What Will the Future hold? Will erroneous prejudices and malicious intent bring this bonanza to a jolting halt, leaving us with a great demand for natural gas and a sud-

den end to supply? The realization of enormous benefits of shale gas is fueling rapid advances in technology, promising a bright future — as long as our industriousness and entrepreneurial spirit are not stifled by the heavy hand of government. Our “crisis” is not a lack of energy but the lack of access to energy due to constraints imposed by environmental activists influentially insinuated in federal and state governments. n

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15

Ed Hiserodt

EnErgy

NaturalGas—
Wresting natural gas from pockets a mile underground is one of man’s greatest accomplishments, and one that promises abundant, clean fuel for a century or more.
by Ed Hiserodt

Yours for the Fracing
A
t first glance the concepts of horizontal drilling for oil and natural gas and hydraulic fracturing, a method of extracting oil and gas from tight shale formations, seem physically impossible. But tens of thousands of gas wells already using this revolutionary technology prove otherwise. Hydraulic fracturing of underground wells is not a new idea, having been used for about a century to increase flow in water wells. When formations are “tight” or clogged, reversing the flow temporarily with high pressure from inside the well often allows more flow. But there, the similarity with today’s technology ends. Known as “fracing” (pronounced FRăKing), the process begins with a large diameter hole (about 20 inches) drilled and cased to a depth of 18 to 20 feet. This “cellar” keeps the bore hole from collapsing in the soft earth and keeps groundwater out while serving as short-term reservoir for overflows of drilling and fracing fluids. A rotary drill of up to 12 inches then begins to grind out a vertical well with tungsten carbide tips. Air is pumped down the drill stem to cool the bit and force cuttings to the surface. The initial hole is drilled to a depth several hundred feet below any freshwater zones. (Most residential wells are less than 150 feet deep, while commercial and municipal wells are usable to about 400 feet.) A surface casing is then inserted in the bore hole, and concrete is pumped down to a shoe at the bottom which forces the concrete back up the annulus between the bore hole and the casing. This concrete-enclosed casing
16

isolates the well from the potable aquifers and also keeps the groundwater and loose debris from contaminating the well. A smaller bit drills through the concrete, continuing downward. Drilling mud, a high-density slurry, is pumped down the drill stem to cool the bit and force rock cuttings to the surface. So far, the process is identical to drilling a conventional gas or oil well. But fracing gives a twist to the traditional process, literally. At about 500 to 600 feet above the shale formation of interest, at a point called the kickoff point (KOP) or heel, a “Measurement While Drilling” (MWD) motor is inserted in the bore hole and forces the bit off line. It traces an arc, entering the shale formation in a horizontal plane known as a lateral. The lateral continues on several thousand feet to the end of the shaft, known as the toe. Production casing is inserted and concreted in place, as was the surface casing. After pressure testing to several thousand pounds per square inch, the large drilling rig is disassembled, cleaned, and sent to another site where it will repeat the 10to 14-day drilling process. The remaining work will be done by a smaller platform known as a workover rig. To punch holes through the casing and concrete, and into the shale formation, a perf gun using multiple shaped charges is lowered and fired electrically. This operaA fleet of specialty vehicles is assembled to enable the fracing operation, which lasts only a few days. A 40 mil sheet of plastic covers the entire site to prevent any ground contamination from the drilling and fracing fluids.
tHE NEW AMErIcAN • JuNE 20, 2011

tion, known as the wireline, begins at the toe and is done in increments of about 500 feet. Now the fun begins.

Fracing If you’ve had the opportunity to drive a car made before 1930, you know how much force it takes to apply the brakes, given the lever-and-cable system used to force the brake shoe against the drum. The hydraulic brake allowed the automobile operator to do what seems quite

anti-intuitive. By stepping on the pedal attached to a lever that pushes a plunger, hundreds of pounds per square inch of pressure are produced in the hydraulic cylinder containing brake fluid. As if by magic this pressure is conveyed to each of the wheel cylinders, thereby “applying the brakes” with little strain on the driver. Hydraulic fracturing uses the same principle, though in this case the brake pedal is a group of large-capacity, high-pressure, diesel-powered pumps. The brake fluid is

akin to one million gallons of water treated with certain chemicals and sufficient proppants — usually sand or spherical ceramic materials — used to prop open perforations formed in the shale by the perf gun and enlarged by hydraulic fracturing. The “brake cylinders” are the fissures in the shale where the pumps transfer tremendous pressure, widening the cracks so gas can flow into the production casing. After one section is fraced, workers plug it so hydraulic pressure can be con-

Water Storage

(Computer Center)

Frac Van

Pressure Testing Truck Plastic Sheeting Well Head Berm Pumper Trucks

Sand Trucks

Mixing Truck

Chemical Truck Fuel Truck Water Storage
Chesapeake Energy

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17

EnErgy
The crews go about their 12-hour workdays with military precision. Regular interactive safety meetings, protective gear, and computer-controlled drilling that gives advance warning before high-pressure venting have lowered the accident rate until oil and gas field work is no longer considered a form of industrial suicide. “Three or four years ago the emphasis was entirely on production,” says Burton, “but today safety and environment concerns determine whether you maintain your MSA.” His reference is to the coveted Master Service Agreement necessary for eligibility to work for major companies such as Southwest Energy and Chesapeake.

Drilling rigs complete their part of the fracing operation in 10 to 14 days. Once in production the gas well occupies only a fraction of an acre.

Ed Hiserodt

centrated in the next section. The process begins at the toe and moves toward the heel. The last step is to remove all plugs so that the remaining fracing fluid flows out. Crews install a six-foot Christmas tree, as the valves and blow-out protectors are called, something of an icon to all the ingenuity and effort that has taken place more than a mile below the surface. The well is now ready to produce clean, abundant energy without which our civilization would soon slide back into the days of human hardship and misery, with lives that are short and brutal.

rently the most active. Tiny Eagle Ford Play in south Texas along the Rio Grande runs a close second due to higher natural porosity than other formations. The huge Marcellus Play in the northeastern United States is third, but is a relatively untapped resource due to the unwillingness of the New York state government to allow its citizens to participate in selling what is unquestionably their property. Rounding out the top four is the Haynesville/ Bossier/Cotton Valley Play in northwest Louisiana and east Texas.

The Shale gas “plays” You may have noticed that the naturalgas drilling and production industry has its share of special expressions, such as fracing, proppants, and wireline. Another word for what most of us would call fields (as in “oil fields”) is the play. The first natural gas play was the Barnett Shale in north central Texas, where drilling began in 1981. Sixteen years of experimenting with the hydraulic fracturing process resulted in 404 minimally producing wells. As fracing was perfected and teamed with horizontal drilling in 2003, new wells were added by the thousands. Today, the Barnett Shale boasts about 13,000 producing wells. The Bakken/Spanish/Three Forks Play located in Montana, North Dakota, and Saskatchewan (shown on the EIA map on page 12 as the Williston Basin) is cur18

Working in the plays The Fayetteville Play is a relatively small but active field supporting a booming shale industry in northern Arkansas. Andy and Brook Burton, co-owners of Trident Well Services, recently hosted TNA on a tour of several of its active drilling sites. Walking one of the sites, Andy Burton pointed out the 40 mil polyethylene sheet covering the active drilling area used to prevent any fluids leaking into the ground. It guides any spills or overflows to the cellar where they are contained until being pumped out and recycled. He noted the knee-high berms that keep liquids on the site in the event of accidental spills. Burton’s company is primarily responsible for ensuring that trucks and the drilling rig itself are cleaned before moving to a new location and that the site will meet the white glove test of the most rabid environmentalist when moved into the production phase.

The Future of Fracing Today, the Natural Gas Association estimates that 90 percent of wells drilled today use fracing as a means to increase production. This technology has, in about four years, changed the natural-gas production outlook from what some feared to be a tailing off of production, to what is now known as the shale gale. Research is under way into re-fracing natural-gas wells and developing even more efficient technology. One interesting new fracing method pioneered by Canada-based Gasfrac Energy Services, Inc. uses gelled propane instead of water as the fracing fluid. Under high pressure, the gel is liquefied and carries the proppants into the shale formation. When pressure is released, the liquid returns to its normal gaseous state. Gasfrac claims that virtually 100 percent of the propane is recovered and that 80 percent of truck traffic to the drilling site is therefore eliminated. The primary argument by those opposing this ingenious way of bringing a valuable product from formations a mile underground to the surface for our use and comfort is that this activity will contaminate near-surface aquifers. Somehow fracing fluid (known from personal contact to be as bland as dishwater) is going to migrate through 4,000 or more feet of rock, sand, and shale into an aquifer. Or drillers would somehow allow the valuable product they are selling to escape from highpressure concrete-encased steel casing into a water well. But the whole process is very environmentally friendly, and it’s getting even friendlier by the day. n
tHE NEW AMErIcAN • JuNE 20, 2011

THE RIgHT PERSPEcTIvE

A Balanced Budget Amendment?
by Scott N. Bradley

In the Founders’ Corner

o we need a “Balanced Budget” Amendment? NO! A constitutionally sound, informed electorate could quickly bring about the conditions that would allow the nation to balance the federal budget and end deficit spending. Thomas Jefferson wrote: “A nation that expects to be ignorant and free … expects what never was and never will be.” The voters must come to understand that it is our responsibility to make certain our Representatives honor their oath of office and keep their actions constrained within the scope and bounds established by the Constitution (no, the Constitution does not say “from each according to his ability, to each according to his need” — that was Karl Marx). Put simply, if Congressmen were simply to honor their oaths of office to abide by the Constitution, the deficit problem would take care of itself. But were they to fail to do so, the only way the budget would be balanced is through a combination of gimmickry and higher taxes. Currently, upwards of 80 percent of expenditures authorized by Congress and insisted upon by the executive branch (at the pandering insistence of the voters) violates the U.S. Constitution. Whether it is unconstitutional military “adventurism” around the world, foreign aid, ever-expanding entitlement programs, or redistribution of wealth to States, corporations, communities, or individuals, none of these activities is allowed by the Charter of the Nation. Immediate steps must be taken to curtail these encroachments. “Sunset” clauses must be incorporated into all entitlement programs,
A candidate for the United States Senate in 2006 and 2010, Scott Bradley holds a Ph.D. in Constitutional Law. He is the founder and chairman of the Constitution Commemoration Foundation, Inc., and is the author of a book and DVD/CD lecture series entitled To Preserve the Nation.

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Scott n. Bradley

and no additional entitlement programs authorized. No Balanced Budget Amendment is necessary if we insist that our elected Representatives keep their actions (and expenditures) within the bounds established by the United States Constitution! In November 2010, using the power of the ballot box, we could have removed all of our unfaithful U.S. Congressmen and 1/3 of our Senators. A year from now we again have the opportunity to do the same thing, and also cleanse the executive branch. There are currently a number of proposed Balanced Budget Amendments that have been introduced in the House and Senate. Each of these potential proposed Balanced Budget Amendments contains a number of fatal flaws: They all allow deficit spending based upon agreement of 60 or 67 percent approval of both houses of Congress (depending upon the amendment being considered). With this stipulation, 60 Senators and 261 Congressmen, or 67 Senators and 292 Congressmen may approve a deficit budget. Because most Senators and Congressmen support

the unconstitutional idea of buying votes back home by delivering largess out of the public treasury to their constituents, it is not hard to see how most budget votes will easily attain the required threshold as pork is added to the budget to buy the vote of a Senator or Congressman so that he can buy the votes for himself back home! The practice of adding additional expenditures to buy the votes of reluctant Congressmen will continue at an even greater rate than it has in the past. Historically, most budget votes have easily attained a 60 percent approval threshold. So we can see that unless Representatives are willing to keep their actions within constitutional bounds, most budgets will exceed the available funds, and the result will be further deficits in spite of the Balanced Budget Amendment. And if the Balanced Budget Amendment is in place, and when the required deficit-allowing threshold is not attainable, but the majority still want to spend the money they feel they need to spend (usually for items and issues not constitutionally allowed, but for such items as entitlement programs, stimulus packages, etc., and which they think are “important” for them to get reelected), they will wring their hands in impotent despair and bemoan the fact that the Constitution now requires the budget to be balanced; therefore, they will be required to raise taxes to cover the expenses, which they may do by meeting another vote threshold. Even those who prefer a tax increase to a budget deficit will at some point reach the breaking point where they will no longer be able to sustain themselves because the government has devoured their entire living (“He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people, and eat out their substance.” — Declaration of Independence). The proposed amendments also allow the national debt ceiling to be raised with approval of 60 Senators and 261 Congressmen.
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THE RIgHT PERSPEcTIvE
and ratification of three-quarters of all states to become an amendment. Consequently, as the call for a Balanced Budget Amendment increases in popularity among the good and caring people of the nation, they will become frustrated with Congress and call for a constitutional convention as provided for in Article V of the Constitution. In 1983, the United States came within two states of calling a constitutional convention, as the popular outcry for a Balanced Budget Amendment pushed the nation dangerously close to a Constitution-destroying constitutional convention. If that happens, we will lose the entire Constitution, as a new one will be written and brought forth (as happened in 1787 during the only other constitutional convention this nation has experienced). In the current political environment, with the current lack of soundly principled statesmen, and with the current state of ignorance among the electorate, we must not be led into the trap of a con-con! The solution is a return to the constraints of power on the federal government that exist within the U.S. Constitution. The problem is not with the Constitution. The Constitution is not flawed. It does not need to be changed in order to bring spending under control. The problem is that we have stopped applying the Constitution. We do not have to amend the Constitution to solve this problem, and we do not have to risk a con-con to bring things back into proper order. The solution is to begin again to abide within the constraints so carefully defined within the plain English words of the U.S. Constitution. James Madison stated that the powers of the national government were “few and well defined.” Perhaps, when the people of the nation again understand that fact, the nation’s leadership will be compelled to abide by their oath to uphold the Constitution of the United States. Hopefully, the electorate will become soundly grounded “constitutionalists” who will vigorously insist that their Representatives abide by their oath to uphold the Constitution, and that they will not hesitate to remove from office any and all who violate that strict oath. n
tHE NEW AMErIcAN • JuNE 20, 2011

Additionally, all of these provisions may be set aside with the approval of 51 Senators and 218 Congressmen if the United States is involved in a declared war. More astounding, however, is the provision that allows continued deficit spending if 60 Senators and 261 Congressmen can be frightened into the belief that there is a serious threat to national security — made fearful enough to vote to suspend the Balanced Budget Amendment. If this provision seems reasonable, consider how rare the moments are in recent decades where the fearmongers have not promoted the idea that we are in a constant state of some kind of threat (à la the TSA’s grope and nude photo-op sessions every time you fly). Consider the fright-frenzy that led to the passage of the Fourth Amendment-destroying USA PATRIOT Act in 2001 (House vote: 357 yeas, 66 nay; Senate vote: 98 yeas, 1 nays), and its recent renewal (House vote: 250 yeas, 153 nays, 28 not voting — for special favors could 11 more yeas have been bought? — Senate vote: 72 yeas, 23 nays, 5 not voting). The lopsided votes associated with the passage of a host of other freedom-destroying “national security” issues such as the fabricated fear
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that drove the passage of the 2002 Iraq War Resolution and the Military Commissions Act could also be cited. Food for thought! In addition, it would be a miracle if the national leadership did not regularly resort to spending “off budget” (which is currently a common practice for “important” expenditures that they do not want to have calculated in the national debt for various reasons). Today’s politicians have buried the nation in debt. They have done this by ignoring the constitutional limits of their power, acting as though they have power to tax and spend for any whim that strikes them. They tax trillions of hard-earned dollars each year from the citizens of this land, only to spend hundreds of billions (and even trillions) more each year than they collect. Sadly, most of the spending is not authorized by the United States Constitution. There is an additional extreme danger we must associate with the effort to obtain a Balanced Budget Amendment to the Constitution: We may be certain that in the current political world a Balanced Budget Amendment will not garner the constitutionally required two-thirds majority of both houses of Congress

north AmEricAn Union

Designed by Joseph W. Kelly for The New AmericAN

Confirms North American Integration Scheme
When U.S. elites were caught creating a regional government with Mexico and canada, dubbed the “North American Union,” they denied it. WikiLeaks shows they lied.
by Alex Newman

WikiLeaks

secret U.S. embassy cable from 2005 released on April 28 by the anti-secrecy group Wiki Leaks confirms what The New AmericAN magazine and others have been reporting for years: North American governments are indeed plotting to “integrate” the continent. And not even including implementing the North American Free Trade Agreement (NAFTA), they’ve been working on it for at least six years, probably more. So far, however, the bombshell has barely attracted any attention in the United States, Canada, or Mexico beyond a few mentions in some liberty-minded Internet forums and a TNA online article posted on May 2. But among patriots who have been opposing the integration efforts only to be dismissed as “conspiracy theorists,” the leaked cable provides more concrete proof
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that the plan is real, dangerous, and more than a recent or transient phenomenon. The official document, signed by thenAmerican Ambassador to Canada Paul Cellucci, outlines the best ways to peddle the scheme to policymakers and the public. Most alarming to critics, it also discusses ways of getting around national constitutions and even the possibility of an eventual “monetary union.” Numerous other topics are broached in the leaked document, too: borders, labor, regulations, and more. But how to push the integration agenda is featured particularly prominently.

“integrating” the United States, Canada, and mexico Integration is a little-used term employed mainly by policy wonks. But while it may sound relatively harmless, it generally describes a very serious phenomenon when used in a geopolitical context — the grad-

ual merging of separate countries under a regional authority. Similar processes are already well under way in Europe, Africa, and South America. And according to critics, the results — essentially abolishing national sovereignty in favor of supranational, unaccountable governance — have been an unmitigated disaster. “The European Union has effectively destroyed the independence of its 27 member nations. The plan to create what critics have dubbed a North American Union (NAU) is a huge step toward accomplishing for our nation and its neighbors what the EU has done in Europe,” said John F. McManus, president of The John Birch Society, which has been at the forefront of sounding the alarm about the integration plan. “If successful, the promoters of the NAU will cancel the U.S. Declaration of Independence and bore a huge hole in the U.S. Constitution. This must not be permitted.”
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Obama and Canadian prime minister Stephen harper announced in early February the creation of a common “perimeter,” a biometric system to track North Americans, and the “Beyond the Border Working Group.”

But the insiders in the U.S. government think otherwise. In North America, integration has been proceeding rapidly for years. In 2006, The New AmericAN was among the first to report on the efforts to submerge Canada, the United States, and Mexico in what opponents called a “North American Union.” In a special issue dedicated to the subject, a series of articles laid out every facet of the plan; its similarities to the European integration model; the planned “NAFTA Super Highway”; and finally, the end game — a world of supranational regional governments eventually merged into a United Nations-supervised global government. The special issue attracted a great deal of attention. Over one million copies, in both physical and electronic form, were distributed across America. Finally, even some TV commentators such as thenCNN’s Lou Dobbs exposed the subject, too. The integration plans eventually faded to the back burner of public consciousness, with an occasional smear against those who acknowledged that the plan even existed. But more recently, the topic has received a little more attention — especially in Canada. And even though documents leaked earlier this year revealed that governments were
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trying to keep the process under wraps, integration is now proceeding out in the open for the most part.

The Cable Written in 2005, the cable released recently by WikiLeaks explains how “integration” should proceed. And looking back, the document is right on the mark. The best way forward, it argues, is via gradual steps. Under the subject line “Placing a new North American Initiative in its economic policy context,” American diplomatic personnel in Canada say they believe the slow and steady path is best. “An incremental and pragmatic package of tasks for a new North American Initiative (NAI) will likely gain the most support among Canadian policymakers,” the cable states in its summary. Apparently Canadian economists agree. How integration backers should peddle the scheme is seemingly one of the primary purposes of the document. The cable touts, for example, the supposed benefits of merging the three countries — intended to be essentially “talking points” to sell the plan. It even mentions which elements of the plan to “stress” in future “efforts to promote further integration.”

“Our research leads us to conclude that such a package should tackle both ‘security’ and ‘prosperity’ goals,” the document claims, using the two key words that have been emphasized at every step along the way. “This fits the recommendations of Canadian economists who have assessed the options for continental integration.” Toward the end, the cable offers more advice on how to advance the integration agenda by tailoring the narrative. “When advocating [the North American Initiative to integrate the three countries], it would be better to highlight specific gains to individual firms, industries or travelers, and especially consumers,” the cable states, noting that it’s harder to “estimate the benefits” on a national or continental scale.

Unsubstantiated Claims In a section of the document headlined “North American Integration: What We Know,” the cable offers nothing but praise for the merging of the continent’s oncesovereign nations. “Past integration (not just NAFTA but also many bilateral and unilateral steps) has increased trade, economic growth, and productivity,” it claims. But countless economists disagree. Acclaimed free-market economist Murray Rothbard, for example, blasted NAFTA.
tHE NEW AMErIcAN • JuNE 20, 2011

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“It’s worse than open socialism; for it’s internationalist socialism camouflaged in the fair clothing of freedom and free markets,” he wrote, calling the agreement “government-directed, government-negotiated trade, which is mercantilism, not free trade.” And of course, true free-trade advocates also correctly point out that the thousands of pages of regulations making up the agreements should hardly be considered examples of genuine free trade. So-called “security,” the other big integration selling point, is featured prominently in the document as well. “A stronger continental ‘security perimeter’ can strengthen economic performance,” the cable states. “It could also facilitate future steps toward trilateral economic integration, such as a common external tariff or a customs union.” And law-enforcement “cooperation” is good too, claim the embassy and the U.S. Ambassador, matter-of-factly. “Cooperative measures on the ‘security’ side, a critical focus of current bilateral efforts, can deliver substantial, early, and widespread economic benefits,” the cable alleges, offering no evidence to substantiate the assertions. “Security and law enforcement within North America have evolved rapidly since 9/11,” it continues. “Collaboration to improve these processes could yield efficiency improvements which would automatically be spread widely across the economy, leading to general gains in trade, productivity, and incomes.” According to this line of thinking, integrating and consolidating police powers with our neighbors to the north and south will somehow not only make us safer, but more prosperous to boot. Those claims are easily demolished by observing the effects of the U.S. government’s “Merida Initiative,” which purports to fight drug trafficking in Mexico — a country where 40,000 innocent victims have been murdered in recent years as a result of the drug war, even as drug imports continue to soar.

a continental currency to replace the dollar. On top of How integration backers should peddle that, they supposedly believe the scheme is apparently one of the such a union should involve all three major North Ameriprimary purposes of the document. The can countries: the United cable touts, for example, the supposed States, Mexico, and Canada. The cable also cautions, benefits of merging the three countries however, that “most” of the — intended to be essentially “talking economists believe the gradual approach is “most appropoints” to sell the plan. priate” — for now, at least. And all of them reportedly agree that such an approach “helps pave states under the “process” subheading, the way to these goals if and when North supposedly referring to the economists’ opinions. “However, governments should Americans choose to pursue them.” The embassy cable also includes a sum- focus on choosing their objectives, and not mary of what it calls the “professional on choosing a process.” (Emphasis added.) The next summary in the cable is about consensus” among Canadian economists on various individual issues related to the the question of “border vs. perimeter,” scheme. “At this time, an ‘incremental’ as the formerly secret document puts it. approach to integration is probably better “Even with zero tariffs, our land borders than a ‘big deal’ approach,” the document have strong commercial effects,” the em-

The Alleged “Consensus” The cable devotes considerable space to listing what it claims is a summary of the “consensus” among Canadian economists. According to the document, “many” economists agree with the scheme. Apparently they also support the principle of “more ambitious integration goals” such as a customs union, a single market, and even
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Creating north America: At a March 23, 2005 press conference, President Bush answered a reporter on the question of the North American Union, saying: “As to what kind of union might there be, i see one based upon free trade, that would then entail commitment to markets and democracy, transparency, rule of law.” WikiLeaks shows the union would entail much more.
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mists” support a customs union beyond what NAFTA The cable also claims the “economists” offers, a feature developed support a customs union beyond what in the European Union once the integration process was nAFTA offers, a feature developed in well established. “A comthe european Union once the integration mon external tariff, or a customs union which elimiprocess was well established. nates NAFTA’s rules of origin (ROO), is economibassy says. However, “some” of the effects cally desirable,” it states. And in terms of — such as law enforcement and “data labor markets, the so-called “consensus” gathering” — are described as “positive.” among the unidentified Canadian econo“Canada and the United States already mists is also — surprise! — the pursuit of share a security perimeter to some degree; even more integration. “Many Canadian it is just a question of how strong we want economists point to labor markets — both to make it,” the 2005 document notes. Ap- within and among countries — as the facparently Canadians’ main reason for seek- tor market [sic] where more liberalization ing a perimeter approach to security and would deliver the greatest economic benborders, as opposed to a border between efits for all three countries,” the docuthe two nations, is to avoid the “risk” ment states. that “discretionary” U.S. decisions to Commenting on the new WikiLeaks stop terror or disease might impede com- revelations, William Gheen, president of merce. And evidently, the nations’ rulers Americans for Legal Immigration (ALIdid recently decide to make the perimeter PAC), said the planned merger was one stronger. They even held a press confer- of the motives for failing to secure the ence about their agreement. More on this southern U.S. border. “This is why these elite banking, business, and political inpress conference later in the article. The cable also claims the “econo- fluences are flooding America with rampant illegal immigration and hyper legal immigration,” he explained. “They are conquering the freedom-loving innocent citizens of America by bringing in outsiders who will replace us incrementally in our jobs and homes.” Next, the cable released by WikiLeaks highlights another startling proposition about how to achieve an end-run around the Canadian Constitution. “Inter-provincial differences [in regulation] are important here, since Canada’s federal government does not have the benefit of a U.S.-style ‘interstate commerce’ clause,” the document states. “While much of the problem is domestic in nature, an international initiative could help to catalyze change.” Yes, the U.S. embassy refers to the wildly abused and misapplied “commerce clause” as a “benefit” that Canada lacks. And it actually suggests — hiding behind unnamed “economists” — that the constitutional “problem” could be minimized by foisting an “international initiative” on the Canadian people. Finally, the document summarizes the “consensus” on the subject of a currency union. It says the supposed economists were “split” on the issues of returning to

mexican soldiers, who have been working ever-more closely with American authorities, patrol an area near the U.S. border after a gun battle that left at least 25 drug suspects dead.

AP Images

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tHE NEW AMErIcAN • JuNE 20, 2011

was concluded. But as usual, almost all of the press coverage that did mention the scheme failed to explain the importance of what was going on. In fact, most of the media — probably taking their cue from Obama, who touched on Egypt before starting the Q&A session — focused on the North African turmoil instead of the new North American security perimeter and its gargantuan implications.

European Union: The once-sovereign nations of Europe underwent a similar “integration” process resulting in an unaccountable super-state that routinely overrules national governments while producing the vast majority of the continent’s laws.

fixed exchange rates or even abolishing Canada’s fiat dollar and replacing it with America’s Federal Reserve fiat currency. The cable gives the final word on the topic of a currency union to the Canadian central bank boss. He is quoted as saying that “monetary union is an issue that should be considered once we have made more progress towards establishing a single market.”

history, progress With the creation of the North American Free Trade Agreement — similar in many ways to the European Common Market that preceded the political union in Europe — the foundation was laid. And from there, integration only accelerated. Especially after the open and public support of the ruling establishment. The scheme to merge North America into a political unit with its own legislature and currency is largely the brainchild of the world government-promoting Council on Foreign Relations. In March of 2005, the infamous CFR foreign-policy cabal produced a document entitled Creating a North American Community: Chairmen’s Statement Independent Task Force on the Future of North America.
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The report called for the creation of a “community” for the supposed purpose of enhancing “security, prosperity, and opportunity for all North Americans.” And since then, the campaign to integrate North America has continued full-speed ahead as a fully bipartisan phenomenon. Under President George W. Bush, for example, integration occurred through the little-known “Security and Prosperity Partnership of North America.” Now, under the Obama administration, the process is virtually out in the open, despite a glaring lack of coverage from establishment news outlets. As TNA online reported in February, Obama and Canadian Prime Minister Stephen Harper met in Washington, D.C., to hammer out a deal on solidifying a common “perimeter” around the two countries. Also part of the agreement, which conspicuously bypassed both countries’ legislatures, was a diminished role for the nations’ shared border. The development of a biometric system to track North Americans was agreed to as well, as were numerous other controversial measures. Amazingly, the two leaders even held a press conference about the deal after it

revelations, Future Since the TNA online article about the cables was published, thousands of blogs and alternative media outlets have picked up the story. The WikiLeaks document is being treated by analysts and activists as a sort of “smoking gun” about what insiders once tried to dismiss as a “conspiracy theory.” “These latest revelations only substantiate what we have been saying for several years, that there is a plan to merge North America to the detriment of the independence of the American people and our constitutionally protected rights,” said CEO Art Thompson of The John Birch Society. “The argument that it has improved our economy and industry is false; just ask those who are out of work. Being unemployed is only the beginning of the woes that will be created by this merger.” ALIPAC sent out a press release on May 18 driving the point home. “It is conspiracy, but it is no theory,” said the organization’s president. “These traitors are trying to conceal their plans, but they are out in the open now. They are trying to force an economic union on America that is not ratified by the US Congress, not authorized by the US Constitution, and not approved of by the American public.” But to stop the scheme, a lot of work remains. If it is to be derailed, Americans and Canadians must be aware of the looming danger. Where the integration campaign will eventually end remains to be seen. But if North American Union advocates get their way, the U.S. Constitution and its Mexican and Canadian counterparts could soon be rendered irrelevant. After that — critics and supporters both agree — plugging the regional units into a global system would be a relatively simple matter. Then, the America that Americans love would essentially be no more. n
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Freedom’s Forefront
The John Birch Society is in the vanguard of the fight to preserve and restore American liberty through effective grass-roots action.
Interview of Larry Greenley by Patrick Krey

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The New AmericAN: How did you come to be associated with The John Birch Society? larry greenley: I was motivated to join The John Birch Society while still in college. I studied philosophy and science and was interested in the concept of free will. It fascinated me for years. This study of free will led me to the study of political freedoms, and after a trip to a JBS bookstore, things would never be the same. I delved into the writings of Robert Welch, which struck me as a practical application of the philosophy of political freedom. It just seemed so right. TNA: What is The John Birch Society about today? greenley: The JBS is a constitutionalist organization. Our goal has not changed in our 52-year history, as we still aspire to the motto of “Less government, more responsibility, and — with God’s help — a better world,” that our founder Robert Welch gave us. This involves working to get the federal government back within its proper constitutional role, which would make it a small fraction of the size it is today. However, we realize that we can’t fight on every front at once, so we try to strategically target some of the crucial battles of the day.

TNA: Which crucial battles are you targeting today? greenley: This year, our top two crucial battles have been state nullification of socalled “ObamaCare” and stopping an Article V constitutional convention. TNA: Regarding the first topic, what motivated JBS to become so instrumental to the nullification movement? greenley: Nullification goes along with our emphasis on returning to the Constitution that our organization has always had. TNA: What’s the status of your battle to nullify ObamaCare? greenley: As of today, at least one dozen states have introduced bills to nullify the entire ObamaCare law. On February 16 the Idaho House became the first state legislative body to pass a measure to nullify the entire ObamaCare law. Unfortunately, on February 25, Idaho’s nullification bill was defeated in a Senate committee. Although another, watered-down ObamaCare nulli-

fication bill was introduced in the Idaho legislature on March 21 and passed by both houses, it was ultimately vetoed by Governor “Butch” Otter on April 20. On the other hand, North Dakota’s state legislature did manage to pass an ObamaCare nullification bill and have it signed by the Governor on April 27; however, it was just a pale imitation of the bill that had been originally introduced back in January. For example, North Dakota’s nullification bill as passed said that the ObamaCare law “likely” was not authorized by the Constitution. Since so many states have ended or are in the process of ending their sessions, it’s hard to predict whether any other states will vote on their nullification measures this year. However, we believe that the introduction and consideration of bills to nullify the entire ObamaCare law in at least 12 states this year has been a healthy step toward restoration of federalism, where states would be empowered to nullify unconstitutional federal laws by

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Liberty News Network

ince its inception more than 50 years ago, The John Birch Society has always been right in the middle of all of the important political battles. In the past year, the JBS has taken on issues as serious and challenging as championing ObamaCare nullification at the state level, as well as opposing the latest unconstitutional actions from Congress. Larry Greenley, the director of marketing for the JBS, spoke with The New AmericAN (TNA) about the Society’s major grassroots activities this year.

Larry greenley

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one or two states would pass bills to nullify ObamaCare If only one or two states would pass bills entirely, the Feds would to nullify ObamaCare entirely, the Feds likely just steamroller them, but if 10 or 20 states would would likely just steamroller them, but pass such bills, then it would if 10 or 20 states would pass such bills, be a whole new ballgame. Early on we at JBS decided then it would be a whole new ballgame. to go straight to the forefront of the battle by posting a asserting their 10th Amendment powers as “Model Federal Healthcare Nullification parties to the original compact that created Act for State Legislatures” in April 2010. the federal government in the first place. If It is gratifying to know that the majority of the states would start nullifying unconstitu- state nullification bills are quite similar to tional federal laws, America would have a our model bill. real chance to return to the limited government envisioned by our Founders. This un- TNA: You say 12 states have introduced precedented interest in asserting state sov- the bills. What do you think will happen ereignty over those powers not delegated to if enough states actually pass these bills? the federal government by the Constitution greenley: There are 12 at this time; howreflects a widespread awakening of mil- ever, given how late in the state legislative lions of Americans and large numbers of calendars we are at this point, Idaho and state legislators regarding the importance of North Dakota might remain the only states reining in the federal government by insist- to vote on ObamaCare nullification this ing on adherence to the Constitution. year. Still, we envision that this ObamaCare nullification movement could pick TNA: What about the argument that any up momentum in the next couple years state opposition to the Feds is crazy be- and play out similar to what happened with cause you can’t prevail against such over- the REAL ID Act. Congress passed it and the President signed it, but since so many whelming power? greenley: We disagree with such a con- states have refused to implement REAL tention because the strategy behind the ID, the feds have backed off and have nullification movement is that there is recently extended the deadline for implestrength in numbers. I agree that if only mentation yet again. If you do have a large number of states passing nullification bills, say 10 to 20, then it would start to create a pushback to the federal government, and good things could happen. As the Tea Parties have shown, a great number of people are fed up with big government and are willing to stand up to it. The Tea Partiers and the 2010 elections have added to my optimism — the situation looks promising not only for nullifying and repealing ObamaCare, but for beginning to roll back the size of the federal government. All of these things work together, and it’s got to be done if we’re going to save our freedom. TNA: What is unique about JBS’ approach to ObamaCare? greenley: The John Birch Society is taking a two-pronged approach. We want to see the entire package of the ObamaCare laws (Public Laws 111-148 and 111-152, to be specific) repealed. We don’t just focus on the individual mandate to buy insurance. The portion of the ObamaCare law that provides for the individual mandate is just a tiny portion of the 150 new agencies and many other newly empowered agencies provided for in the healthcare reform law, and is simply just the tip of the iceberg. Even without the individual mandate, the remaining portions of the ObamaCare regulatory iceberg would be more than sufficient to accomplish a complete government takeover of our nation’s healthcare system. To summarize: We’re for total nullification at the state level and total repeal at the federal level. TNA: What about the ruling by the Florida judge that ObamaCare is unconstitutional? greenley: Although that ruling is very encouraging, we don’t expect the Supreme Court to rule that the entire ObamaCare law is unconstitutional. Even if they do end up ruling that the individual mandate is unconstitutional, it is very unlikely that they would invalidate the entire remainder of the law. TNA: You mentioned bills that have been introduced in state legislatures, but what about nullification legislation that has actually passed?

north Dakota State Capitol: The north Dakota state legislature passed both an ObamaCare nullification bill and a call for a constitutional convention this year.

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Bobak Ha’Eri

tHE NEW AMErIcAN • JuNE 20, 2011

greenley: The “Freedom of Choice in Health Care” legislation, which deals primarily with nullifying the individual mandate portion of ObamaCare, has been introduced in over 40 states. It has already been enacted into law in seven states (Arizona, Georgia, Idaho, Louisiana, Missouri, Virginia, North Carolina), passed but vetoed by the Governor in Florida and Oklahoma, and passed as a constitutional amendment in Arizona and Oklahoma. However, as I’ve already commented earlier, we don’t promote this type of partial nullification. Even if the individual mandate provision of ObamaCare were found to be unconstitutional and/or repealed by Congress, the remaining vast majority of provisions would still convert our healthcare system into a government-controlled, pale shadow of its former status. This is why, we promote full nullification of the entire law. TNA: What about those who say we should only focus on nullifying at the state level and not bother with congressional legislation because it’s a dead-end? greenley: That’s where people go wrong. They should do both. You do everything you can. This is a very unusual time where we have more people awakened than we’ve ever seen, and the November 2010 congressional elections demonstrated that informed, responsible voters can indeed still “throw the bums out” who disregard the Constitution. However, even the very welcome electoral changes last fall were still insufficient to effect the size of rollback needed to cut the federal government back to its proper size. That’s why it’s so important that we keep the constitutionalist, conservative grass-roots movement active and growing so that we can see even better election results in 2012. TNA: What about fears with the new Congress that it’s going to be a repeat of 1994, when Republicans won control of the House but soon acted like establishment politicians? greenley: This is a very valid concern. Already Tea Party and other activists have been disappointed with how little the Republicans were able to cut from

monty pearce

mike ritze

State Senator Monty Pearce (R-idaho) and State Representative Dr. Mike Ritze (R-Okla.) sponsored ObamaCare nullification bills in their respective state legislatures earlier this year.

the Fiscal Year 2011 appropriations bill. The next big test will be the vote on the public debt ceiling. Since there is so much energy being put into scrutinizing Congressmen and their votes, I don’t expect this to be just a rerun of 1994. However, I want to emphasize that the JBS has never endorsed any political party or candidate; instead, we urge our members to be active in the party of their choice and support the candidates of their choice. TNA: There are renewed calls this year from a vocal minority for an Article V constitutional convention, referred to as a “con-con,” that JBS is opposing. What is the reason for JBS’ stance on that? greenley: Attempting to rein in the federal government by revising the Constitution through a new constitutional convention convened according to Article V is inherently very, very risky. If we are to preserve our freedom under the Constitution, then the states should rein in our out-of-control federal government by enforcing the Constitution through nullification of unconstitutional federal laws, coupled with electing more Representatives and Senators to Congress who are committed to adhering to the Constitution, rather than by attempting to revise the Constitution through an inherently risky constitutional convention process. TNA: What are the dangers of a con-con? greenley: Once called, a constitutional convention becomes its own au-

thority and cannot be limited. A con-con may become a “runaway convention” that drastically alters our form of government, or throws out the Constitution altogether and establishes an entirely new system of government. It is absurd to believe that a majority (or even a sizable minority) of the individuals likely to be delegates to a con-con today would compare favorably with our nation’s Founders or share their commitment to liberty and limited government. The general public’s understanding of our Constitution has deteriorated greatly, while dependence on government programs has dramatically escalated since our founding, with both of these factors militating for bigger and bigger government. TNA: What do you say to con-con proponents who argue that worries that the convention may exceed its mandate are unfounded, since the state legislatures can limit the con-con to consideration of a single issue? greenley: These assurances are unsupported. All you need to do is to look at the learned opinions of jurists and constitutional experts from the Founding era to the present. James Madison himself, father of the Constitution, warned against convening a second constitutional convention. When he learned that New York and Virginia were actively calling for an Article V convention in 1788, just months since ratification of the Constitution, he counseled:

29

intErviEw
If a General Convention were to take place for the avowed and sole purpose of revising the Constitution, it would naturally consider itself as having a greater latitude than the Congress.... It would consequently give greater agitation to the public mind; an election into it would be courted by the most violent partisans on both sides … [and] would no doubt contain individuals of insidious views, who, under the mask of seeking alterations popular in some parts … might have the dangerous opportunity of sapping the very foundations of the fabric.... Having witnessed the difficulties and dangers experienced by the first Convention, which assembled under every propitious circumstance, I should tremble for the result of a second, meeting in the present temper in America. Madison clearly did not believe that a con-con could be limited and trembled at the thought of one. Madison’s view that it is impractical, or even impossible, to limit a con-con is shared by a wide array of jurists and legal scholars, including noted Democrats and Republicans, liberals, conservatives, and libertarians. Among those who have addressed this issue are former Chief Justice of the United States Supreme Court Warren E. Burger, former U.S. Supreme Court Justice Arthur J. Goldberg, former U.S. Circuit Court Judge Robert H. Bork, Prof. Lawrence H. Tribe of Harvard Law School, and Prof. Charles E. Rice of Notre Dame Law School. TNA: Some con-con proponents argue that we would be protected from any danger because any amendment, or amendments, that would be proposed by an Article V constitutional convention would need to be ratified by three-fourths of the states. greenley: While the additional requirement of ratification by three-fourths of the states does provide some protection TNA: What is the status of your action project to stop any new state constitutional convention calls this year? greenley: Although at least 23 states had one or more con-con bills introduced this year, we’re very happy to report that only one state, North Dakota, has passed a concon call so far this year. Most of the concon bills that were introduced this year are now “dead” due to missing various deadlines or due to sessions being adjourned for the year. As they have for the past 30 years or so, members of The John Birch Society played a leading role in “killing” these concon bills by contacting their state legislators and testifying before committees. from “bad” or “crazy” amendments, we all know just how many tens of millions, and perhaps hundreds of millions, of dollars can be mobilized by special interest groups to influence Americans in elections. If some “individuals of insidious views” could succeed in getting damaging amendments proposed in an Article V constitutional convention, then it’s probable that many political and specialinterest organizations with deep pockets, as well as the biased mainstream media, would get involved in a huge way to promote the ratification of any amendments that would further their agenda. Also, we’ve already had a couple bad amendments, the 16th Amendment which empowered Congress to impose the income tax and the 17th Amendment for the direct election of Senators, ratified by three-fourths of the states. Furthermore, Congress has the option of sending any proposed amendments from an Article V constitutional convention either to the state legislatures or to special state conventions for ratification. This means that even though the state legislators of at least 34 states might attempt to call for an Article V convention limited to considering only one or a specific few amendments, Congress could choose to send the resulting proposed amendments back to special state ratifying conventions, bypassing completely the state legislators who called for the convention in the first place. TNA: So what should patriots do who want to roll back the federal government? greenley: We need to persuade state legislators to enforce the Constitution through nullification of the entire ObamaCare law and other unconstitutional federal laws. At the same time, we want to stop the new drive to revise the Constitution via a constitutional convention by defeating all state con-con call resolutions, then going on offense to preserve the Constitution by persuading state legislators to introduce and pass con-con rescission resolutions in those states that haven’t repealed their existing con-con calls. Although virtually all 50 states have con-con calls on their books, 15 states have already rescinded their calls; they are Alabama, Arizona, Georgia, Idaho, Louisiana, Montana, New Hampshire, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wyoming. The John Birch Society is also cosponsoring the “Nullify Now” tour, which has dates planned throughout 2011. (See the site nullifynow.com for more details.) The goal of JBS is to continue to educate the electorate and promote activism among the American people with the long-term goal of “Less government, more responsibility, and — with God’s help — a better world.” For more information on our action projects “Choose Freedom — STOP ObamaCare!” and “Choose Freedom — STOP A ConCon,” go to http://www.JBS.org. n

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tHE NEW AMErIcAN • JuNE 20, 2011

Book rEviEw

His Will Be Done
Supreme court Justice William Joseph Brennan, Jr. set out to remake American jurisprudence to reflect his own sense of right and wrong — and he was successful.
by Jack Kenny

Justice Brennan: Liberal Champion, by Seth Stern and Stephen Wermiel, Boston: Houghton Mifflin Harcourt, 2010, 547 pages, hardcover. n April 18, 1906, a devastating earthquake struck the San Francisco Bay area, sending shockwaves from southern Oregon to points south of Los Angeles. Exactly one week later, on the other side of the continent, William Joseph Brennan, Jr. was born. Judicial conservatives might well consider Brennan the greater disaster. For as the subtitle of the book Justice Brennan declares, the Newark native was a “Liberal Champion,” though that was not the general expectation when Republican President Dwight Eisenhower appointed him to the Supreme Court in 1956. “Little in his career as a corporate lawyer and New Jersey state judge suggested that William Brennan would emerge as perhaps the most influential justice of entire twentieth century,” authors Seth Stern and Stephen Wermiel wrote in the prologue to their interesting and highly readable biography. “No one could have predicted that Brennan would become the most forceful and effective liberal ever to serve on the court.” Through much of his 34-year tenure on the court, few were aware of the pivotal role Brennan played. A 1966 cover story on “The Warren Court” in the New York Times magazine made no mention of Brennan. And, the biographers note, Brennan’s presence at a meeting of the Pennsylvania Bar Association in 1960 was overshadowed by actor Raymond Burr, who was not a lawyer though he played one on television. TV’s “Perry Mason” obligingly signed autographs, while “Mr. Justice Brennan came unheralded,” the Pittsburgh Post Gazette noted. “He left unfollowed.”
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Two years later Brennan wrote one of the many controversial opinions of the Warren Court in Baker v. Carr, requiring the states to alter the drawing of electoral districts to ensure equal representation by population. He would author other unsettling opinions during his decades-long tenure on the court, but his enormous influence, Stern and Wermiel point out, came primarily from his skills as a “keen workplace politician,” smoothing out differences among conflicting legal opinions and effecting compromises that ultimately reflected his own thinking on social and political questions that remain “hot button” issues today. Court rulings on abortion, affirmative action, civil rights, and the death penalty, whether penned by Brennan or other members of the court’s liberal bloc, have Brennan’s fingerprints on them and the force of his intellect behind them. And that seemingly modest, unassuming man quietly made some remarkably bold statements in support of his expansive view of the court’s interpretive powers. In 1958, Brennan authored the opinion of the court in Cooper v. Aaron, denying a request from the Little Rock, Arkansas, school district for a delay in implementing the court’s desegregation order. All legislative, executive, and judicial officers are “solemnly bound not to war against the Constitution,” he wrote, and to “obey its commands as defined by this Court.” In language that was sure to raise eyebrows and not a few hackles, Brennan stated matter-of-factly that the findings of the court are the “supreme law of the land.” Chief Justice Earl Warren, another remarkably skilled “workplace politician,” got all the justices to sign the one opinion, which Warren read from the bench. Few outside of the court knew who wrote it.

The son of Irish immigrants, Brennan grew up under the influence of William, Sr., a prominent and much loved politician in Newark, who no doubt would have been amazed to read the opinion his son wrote for the court in Texas v. Johnson, declaring that flag burning as an act of protest is constitutionally protected speech. For the authors tell us that the elder Brennan, as City Commissioner in charge of public safety, “declared that any police officer who did nothing in the face of an insult to the American flag did not deserve to wear the uniform.” Brennan, Sr. ran afoul of the law when he threatened to pull the license of Newark’s Capitol Theatre and arrest anyone involved in the showing of The Naked Truth, a film about the dangers of venereal disease. A state judge issued an injunction to stop him, however, stating Brennan had no authority to interfere. Years later the commissioner’s son, as a justice on the New Jersey Supreme Court, found another public safety director in Newark exercised unconstitutional prior restraint on speech by denying an operating license to a theater because it had previously held burlesque shows. In his written opinion, the younger Brennan cited the 1926 court decision that prevented his father from doing essentially the same thing.
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Book rEviEw
tions he likened to “Salem witch hunts” and “inquisitions” that Brennan had, for example, called destroyed reputations of “hapthe death penalty unconstitutional, less, helpless victims.” The thinly veiled references to Senator Jothough the Fifth and 14th Amendments seph McCarthy’s investigations acknowledge and accept its use, into subversive activities within the government did not go unnosubject to “due process of law.” ticed by the Wisconsin Senator, who was given the opportunity At Harvard Law School, young Bill to question the Supreme Court nominee Brennan became a student of Professor at his confirmation hearing in 1957. McFelix Frankfurter, with whom he would Carthy asked the judge if he could cite any later serve on the Supreme Court. Though instance of epithets hurled “at the hapless, Brennan remained an admirer to the end, helpless victims.” “I can’t name any specific instances for the influence of the older, more conservative jurist on his former pupil waned you, Senator,” Brennan answered. “Do you approve of congressional inconsiderably during their time together on the court, as Brennan regularly joined vestigations and exposure of the Commuwith Warren, William Douglas and Hugo nist conspiracy setup?” McCarthy asked. “Not only do I approve, Senator,” said Black to form the court’s liberal bloc. Though ever in awe of Frankfurter, Bren- Brennan, “but personally I cannot think of nan came to regard his approach to the law a more vital function of the Congress than as the jurisprudence of a bygone era. “We the investigatory function of its commitwould be inclined to agree with Felix more tees, and I can’t think of a more important often,” he once said, “if he quoted (Oliver and vital objective of any committee investigation than that of rooting out subverWendell) Holmes less frequently to us.” The authors include some charming sives in government.” Though five Catholics had preceded him anecdotes, including an account of the time Brennan and his son Bill, on an on the high court, Brennan was required to early morning walk with neither bearing make the ritual denial of dual loyalty that any identification, were picked up on the John F. Kennedy would later make as a grounds of a nearby prep school by a pair Catholic running for President. “There is of police officers who suspected them of a certain irony,” the authors suggest, “that trying to break in. At Brennan’s request both Brennan and Kennedy, neither of they brought them to his home, where his whom considered themselves particularly wife identified the unshaven, suspicious religious, found it necessary to pledge to looking pair as her husband and son and compartmentalize their private faith, when confirmed that the elder of the two was it was not likely to guide them anyway.” In welcoming a challenge to a Connectindeed a judge on the Supreme Court. The genial judge then invited the embarrassed icut law banning the use of contraceptives, officers in and cooked breakfast for them. Brennan worked quietly behind the scenes Brennan’s concern for due process with Justice Douglas in formulating an in criminal cases was evident during his undefined but overarching right to privacy tenure on the state Supreme Court in the the law violated. According to Stern and 1950s. In one remarkable case, he wrote a Wermiel, it was Brennan who later sugvigorous dissent when the court ruled that gested to Douglas that the privacy right, a defendant in a murder trial was not en- which Douglas had located in “a penumbra titled access to either his own statements reflecting emanations” from other rights to the police or the witnesses’ statements. spelled out in the Constitution, would be “It shocks my sense of justice that in these useful in striking down abortion laws as circumstances counsel for an accused well. While Justice Harry Blackmun wrote facing a possible death sentence should the opinion of the court in the 1973 Roe v. be denied inspection of his confession,” Wade ruling, that decision, like so many others, bore the heavy imprint of Justice Brennan wrote. In his public speeches, he expressed William J. Brennan. A dozen years letter, Brennan publicly concern over congressional investiga32

rebutted calls for a return to a “jurisprudence of original intention,” claiming it is “arrogance cloaked in humility” to presume to know what the Framers intended. Besides, he declared, the “genius of the Constitution rests not in any static meaning it might have had in a world that is dead and gone, but in the adaptability of its great principles to cope with current problems and current needs.” While Brennan’s stand drew editorial praise from the New York Times and other “progressive” newspapers, Stuart Taylor, writing in the New Republic, questioned the role of judges as arbiters self-empowered to define our “current problems” and determine our “current needs.” Taylor saw “real problems with the freewheeling judicial activism sometimes practiced by people like Brennan. Among these is a tendency to ‘find’ in the Constitution rights (such as abortion rights) and social policies that can honestly be found neither in the language of the document, nor in the records left by those who wrote it, nor in any broad national consensus that has evolved since then.” Brennan had, for example, called the death penalty unconstitutional, though the Fifth and 14th Amendments acknowledge and accept its use, subject to “due process of law.” Brennan chose to impose his own “moral convictions” on constitutional law to negate the choices made by elected representatives, Taylor charged. Brennan, of course, was not alone in that. But in the Roe case, especially, he is as much responsible as any of his colleagues for making the Constitution what the abolitionist Frederick Douglass called “a covenant with death and an agreement with hell.” Perhaps Justice Brennan, who died 14 years ago, now views that covenant in a different light. n

tHE NEW AMErIcAN • JuNE 20, 2011

THE gOODNESS OF AMERIcA

Company Offers pro-bono Service to Family in need
Philosopher Kahlil Gibran once said, “You give but little when you give of your possessions. It is when you give of yourself that you truly give.” The story of LandSouth Construction’s generosity toward Kimberly and Brandon Belzer fully personifies Gibran’s philosophy. Brandon Belzer was born with hydrocephalus, a buildup of fluid inside the skull that leads to swelling of the brain. As a result, Brandon is extremely handicapped, autistic, asthmatic, and non-verbal. Additionally, Brandon is currently in remission for kidney cancer. Brandon’s mother, Kimberly, is single and doing the best she can to support her special-needs son. Her burden became intensified by repairs that were required for her home. For example, the roof to Kimberly and Brandon’s home was leaking and developed mold, which had the potential to worsen Brandon’s condition, making him more susceptible to other ailments. Touched by Kimberly and Brandon’s story, and moved by Kimberly’s unending determination to meet all the needs of her child, LandSouth Construction came forward and volunteered to make the necessary improvements to the Belzer home. Sonny Lloyd, project manager at LandSouth Construction, explained:
After our initial visit with Kimberly, LandSouth felt that the roof was definitely her most important need but she had several other problem areas that we felt compelled to bring up to par for her as well. Most of them are small maintenance needs, but not [taking] care of them would surely be costly for her in the future. We then took those needs to some of our suppliers, subcontractors and contacts in the local community.

LandSouth Construction owner James Pyle said of the endeavor, “The whole process has been truly a blessing to me personally.”

Just Call Them Dream-makers
When Iraqi political refugee Samir Khurshid came to the United States, he learned that America is not only the land of opportunity, but the land of charity. As an artist in Iraq, Samir had been forced to paint 83 official portraits of Saddam Hussein before American forces overthrew the dictator in 2003. Samir then began to paint portraits for American soldiers, until the Iraqi opposition learned of his work and threatened his life. Samir fled to Turkey for asylum, where he resided for five years, until he finally sought refuge in the United States, with just the clothes on his back and a few brushes and paints. Upon entering the United States, Samir received the aid of the Immigrant and Refugee Community Organization (IRCO), a Portland-based group that assists immigrants and refugees by placing them in job-training classes, enrolling them in English lessons, and providing a monthly stipend. However, it became clear to those at IRCO that Samir had both a talent and a passion for painting, one that could not be supplanted by anything else. The Oregonian explains, “As more people at IRCO learned of Khurshid’s history, the desire to provide him with art supplies spread.” He was introduced to the City Club of Portland, which offered to hang his new paintings. Because Samir’s stipends barely covered his living expenses, he was unable to afford paint supplies, prompting Margaret Malarkey, director of community and donor relations for IRCO, to purchase Samir’s supplies out of her own pocket. Not only was Samir delighted with his new supplies, but he was overwhelmed when he was told that he could paint whatever he wanted.

The Oregonian published Khurshid’s story regarding his experiences in Iraq and his need for art supplies, which provoked the charitable efforts of Portland’s art community. Donors sent over $1,000 in checks and gift cards to supply stores. Patrons commissioned his paintings, and Brian Wannamaker, who owns the Falcon Art Community, provided Samir with the keys to a studio and an apartment in March. “I am always saying, ‘Thank you, thank you.’” Khurshid said. “This is my dream. I get everything. Now it is my turn. I work hard. I show everyone my art.” Samir’s stipend ran out on April 1, but he has been able to live off of his art as a result of the generosity of Americans.

hero reunites Family With pet
Most people who own pets will say that the animal has become not just a pet, but a part of the family. To the Powell family, Midnight was more than just a dog. And for Rosa Foote’s efforts in rescuing that family member, the Powell family regards her as a hero. When Midnight disappeared from her family’s home in April, the family was beside themselves, and believed their pet to be dead. On April 20, Rosa discovered the confused and elderly dog wandering across a busy intersection. Aware that without her intervention, the dog would likely be killed, Rosa ran into the street, without consideration of her own safety, to rescue the disoriented animal. Following the rescue effort, Rosa embarked on a search for Midnight’s family, and finally reunited the dog with her rightful owners. According to Midnight’s family, “An angel must have been watching over her.” Valerie Powell submitted a photograph of the dog and a note to local newspapers to honor Rosa’s efforts. Powell wrote, “Rosa Foote is the reason this part of the story is happening. We can’t thank her enough for the efforts she made to make sure our beloved family member was taken care of and safe.” n — rAveN clAbough
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As a result of LandSouth’s charitable efforts, Kimberly has been able to concentrate on her schooling and focus her attention on securing a job that will allow her to meet the needs of her family.
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HistOrY— AmericAnist entrepreneurs

Fred Koch:

Oil Man Against Communism
by Charles Scaliger

Fred Koch, the founder of Koch Industries, experienced abuses by industries large enough to run roughshod over others and by a communist government, and he fought back.

Courtesy Photo

n the year 1930, the city of Tiflis (now Tbilisi) was a captive capital. The ancient city in the heart of the Caucasus, with its mountain scenery and splendid architecture, was enduring, with the rest of the Soviet Union, the onset of Stalin’s reign of terror. As elsewhere in the Soviet Union, ordinary people had become practiced in the arts of sullen self-preservation. Perhaps that was why no one offered to help the men working to extricate one of their party from an overturned car before the badly damaged vehicle burst into flames. The men wore business suits and spoke English, though few of the passersby recognized the unfamiliar tongue. The man trapped in the car, on the other hand, was a feral-faced communist “handler,” a man with considerable clout in the Soviet government. Eventually, the foreigners managed to pull out their little “guide,” whose name was Jerome Livshitz. As soon as he was on his feet, Livshitz addressed one of the foreigners, a young man scarcely 30. “Why did you save my life?” Livshitz asked. “We are enemies. I would not have saved yours. Perhaps when the revolution comes to the U.S.A. and I return there, I will spare your lives.” Many years later, the American businessman who had helped to rescue Livshitz still expressed astonishment at the little Bolshevik’s cruel and unyielding ideology. “[Livshitz] told me that if his own mother stood in the way of the revolution he would strangle her with his bare hands,” he wrote. “This is the mark of a hard-core Communist. They will do anything — anything.” The businessman’s name was Fred C. Koch.

I

Partnership of unequals: A young Fred C. Koch (left) in 1930, with Soviet handler Jerome Livshitz (center) and American business associate Jack Giles, at Baku. Despite his diminutive stature, Livshitz was a ruthless Bolshevik who once told Koch he would strangle his mother with his bare hands if the Revolution required it.
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Building a Business

At the time, Fred Koch was already a wunderkind in the petroleum industry. Born in 1900 the son of a Dutch immigrant from
35

history— AmEricAnist EntrEprEnEUrs
that the full-frontal legal as- of influence, for new contracts. From 1929 sault on the upstart Koch was to 1932, Koch built 15 cracking units in The American businessman who had inspired by no higher mo- the Soviet Union, and many others elsetives than envy and greed. We where in Europe, the Middle East, and helped to rescue Livshitz still expressed must suppose that, as a result Asia. He also brought Soviet technicians astonishment at the little Bolshevik’s cruel of the campaign to sue him to the United States for training — some and unyielding ideology. “[Livshitz] told out of the refining business, of whom opted not to return to their StalinFred Koch must have begun ist motherland. me that if his own mother stood in the way to understand that the modof the revolution he would strangle her ern American business sector Repelled by Revolution was not nearly as free-market It was Fred Koch’s hands-on experience with his bare hands,” he wrote. as it was cracked up to be. with Soviet Communism that convinced Vindicated though he must him of the unmitigated evil of such a sysQuanah, Texas, Fred had graduated from have felt at staving off the lawsuits, they tem, and ultimately turned him into a pasMIT in 1922 with a chemical engineer- proved to be Pyrrhic victories. The cost and sionate crusader on behalf of liberty. In ing degree. He was first employed by the production delays occasioned by litigation 1960, three decades after his hands-on exTexas Company in Port Arthur, Texas, and left Winkler-Koch unable to conduct busi- perience in the Soviet Union, he published then by the Medway Oil and Storage Com- ness in the United States for several years a small but trenchant tract, A Business Man pany in Kent, England, where he was chief — as the Big Oil oligarchs intended. Un- Looks at Communism, which spelled out engineer. Only three years after gradua- dismayed, Koch and his associates turned his convictions and won many admirers. tion from college, Koch rejoined an MIT their attention to potential foreign markets, The Soviet Union, he wrote, was a “land classmate at Keith-Winkler Engineering, including the Soviet Union, where there of hunger, misery, and terror.” He had seen a petrochemical engineering concern in was a demand for American expertise in firsthand the fruits of Soviet Communism, Wichita, Kansas. His friend P. C. Keith petroleum engineering. Ironically, the liti- both at home and abroad. One of his origisoon moved on, however, and later in gation unleashed by anti-free-market mo- nal Soviet associates, a Mr. Barinoff, the 1925, the firm was renamed the Winkler- nopolists at home prompted Koch to look president of a major Soviet oil concern in eastward, to the rising communist sphere Baku, whom Koch described as a “very Koch Engineering Company. Within two years, Koch had devised a more efficient procedure for cracking crude oil — the process by which crude oil is refined into gasoline and other products. Cracking was first invented by a Russian engineer, Vladimir Shukhov, in the late 19th century. By the 1920s, the petroleum industry was fully fledged, in no small measure in response to the needs of the burgeoning automobile industry. Then as now, the petroleum industry was dominated by a few mega-corporations that did not scruple to enlist the power of the state to enforce their near-monopolistic dominance of the industry at the expense of smaller would-be competitors. Koch’s new royalty-free thermal cracking process, by producing higher yields of refined gasoline from crude oil and reducing down time, helped smaller companies to better compete with their larger, more entrenched, and better-capitalized rivals. The latter lost no time in attacking Koch, filing no less than 44 lawsuits against WinklerKoch and all its customers in a contemptible campaign to force the company out of business. That Winkler-Koch won every Unintended consequences: While in Russia, Fred Koch (left) received a thorough education lawsuit but one (and that verdict was later in Marxism/Leninism from Jerome Livshitz, an ardent Bolshevik. Though Livshitz was later overturned when it was discovered that the liquidated by Stalin, Koch recorded for posterity the Bolshevik’s zealotry in A Business Man Looks judge had been bribed) is evidence enough at Communism.
36 tHE NEW AMErIcAN • JuNE 20, 2011

large man with handle-bar mustache,” befriended the American at a meeting in Wichita. “Mr. Barinoff told me to be sure and come to see him at Baku,” Koch wrote. “When I came to Russia a year and a half later Mr. Barinoff was dead, shot by Stalin.” Another prominent Soviet oil executive at the Wichita meeting, a Mr. Ganshin, was, at the time of Koch’s visit, “on trial for his life, later to be shot.” As for the Soviet engineers that Winkler-Koch trained in the United States: As far as I could tell most of these men were subsequently shot or sent to Siberia. One man, a little fellow by the name of Hatchatouroff, after leaving Wichita to return to Russia, found out in Germany that he would be shot when he reached home, so he came back to the U.S.A., and to Wichita. In order to help him we gave him a job, but after a few months, in the spring of 1930, he either committed suicide, or was murdered by the Soviet Secret Police, which unknown to most people has operated in the United States for thirty years. There is a saying among Communists that it is easier to commit an artistic murder than an artistic suicide. In other words many murders are made to look like suicide, so we will never know the truth about Hatchatouroff’s death in Wichita. Thus did Soviet communism cannibalize its own. Koch was exposed to communism by precept as well as by experience, thanks to the unflagging evangelism of Jerome Livshitz, his handler during his time in the Soviet Union. Livshitz, like many elite Russian revolutionaries, was well educated and eager to debate the alleged merits of the Soviet system with his captive American audience. “In the months I traveled with [Livshitz] he gave me a liberal education in Communist techniques and methods,” Koch recalled: He told me how the Communists were going to infiltrate the U.S.A. in the schools, universities, churches, labor unions, government, armed forces, and to use his words, “We will make you rotten to the core.” I
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Faces of communism: Starving children in the Soviet Union, a part of the world that, thanks to Soviet collectivism and terror, made the Great Depression taking place in the West look benign by comparison.

believe that due to his American experience he was one of the original architects of the Communist plan of subversion of the U.S.A. But Livshitz — whose life had once been saved by capitalists who plucked him from beneath an automobile — suffered a no less indecorous end than many of Koch’s other Soviet associates; he was liquidated by Stalin in 1936.

saw only the military danger, Koch understood, thanks to the indiscreet boasting of Livshitz, that the communists’ aim was to conquer by subversion. He comprehended their patience and their willingness to appear to give ground tactically for strategic advantage. He perceived that the communists were masters at long-term planning: If you do not think dialectically, you are at the mercy of any trick they pull. They are working it all around the world today — the dialectic thrust and then retreat. They surge in Iraq. We send troops to Lebanon. They retreat, then thrust at Berlin. We react and they smile, and send over the mass murderer Khrushchev breathing smiles and peace one minute and Communist propaganda and threats of nuclear destruction the next.... Words do not mean to a Communist what they mean to you and me. This is a carry-over from the Aesopian language of the revolutionary in Czarist days. When a Communist says he wants peace he means he wants
37

How to Corral Communism

A Business Man Looks at Communism furnishes a neat overview of the theory of Marxism-Leninism; the late Livshitz had at least been a good preceptor. At a time when many of the wealthy and well- (or perhaps over-) educated rhapsodized about the supposedly high-minded principles of socialism and of Stalin’s program, Koch, in crisp, businesslike prose, demolished the Soviet cause in a mere 40 hard-hitting pages. But Koch was no reflexive fearmonger; he perceived, correctly as affairs have turned out, the comprehensive character of the communist threat. Where others

HistOrY— AmericAnist entrepreneurs
ernment propaganda into our schools for years. The To fight the scourge of communism, Koch U.N. was conceived by the businessman urged Americans to the Russians during World War II as a device to coneducate themselves about communism, to tinue collaboration with organize, and to act, never compromising the United States which had proven so profitable their principles no matter how withering to them. The argument the rhetorical opposition. that the U.N. is an instrument of peace is entirely Communism. When he says he wants fallacious. Is there any indication that “peaceful coexistence” he means he since the U.N. has been in existence wants no outward violence while he there is any less war than formerly? bores from within and conquers you As a matter of fact there are more by treason and subversion. arms, hatred, threats, brush fires and threats of war than there have ever Koch warned that American institutions been.... The U.N. will undoubtedly be were honeycombed with communist subone of the most important tools for versives, from labor unions and tax-free the Communist take-over of Amerifoundations to universities and churches. ca.... Let us give Red China a seat in Art and newsprint, radio and television — the U.N. — our seat!!!! all these media had been transmuted into vehicles of communist propaganda. Koch To fight the scourge of communism, Koch declared unflinchingly that the United Na- the businessman urged Americans to edutions was a tool of the communists: cate themselves about communism, to organize, and to act, never compromising The United Nations … has been their principles no matter how withering a rotten core of subversion. It is a the rhetorical opposition. “Be scrupulous haven for subversives and security about your evidence and the rules of fair risks. UNESCO has been spewing play before making a charge against any forth Communist and World govindividual or group,” Koch warned. “You have helped Communism instead of hurting it when you have to retract.... The TRUTH and EXPOSURE are your most powerful weapons.” To those too young to remember the Cold War, some of Fred Koch’s concerns may seem anachronistic. After all, goes received wisdom, the Soviet Union and Eastern Bloc collapsed without a shot being fired, and freedom is now breaking out the world over. Yet America is less free now than at any time in her history, excepting perhaps the extreme regimentation during World War II. While we are still a far cry from the Soviet Union of Stalin, Americans now seem willing to tolerate comprehensive attacks on our liberty carried out in the name of a war on terror. Where once helmeted storm troopers kicking in doors were tropes associated with totalitarianism, they are a commonplace nowadays on American soil — all in the name of a feckless war on drugs. Where America once took pride in a laissez-faire business climate, businessmen and consumers alike seem to positively embrace the growing ascendancy of the federal government, with its legions of bureaucrats and regulators, over every facet of the economy. From perverted full-body patdowns in our airports to our newly socialized medical system,

Distillate of capitalism: A Winkler-Koch oil distillery works in Tuapse, Soviet Russia, in 1930

38

THE NEW AMERICAN • JUNE 20, 2011

Courtesy Photo

AP Images

Legacy: The modern-day Koch industries is involved in the manufacture of a wide range of the world’s most useful products, from pipelines to plastics.

Americans — large numbers of them, at any rate — seem eager to participate in a Gadarene rush into full-blown socialism of a sort that would have made the Stalins and Khrushchevs of yesteryear proud. Fred Koch was no fly-by-night pamphleteer. He spent a generous portion of his later years using his wealth and influence to fight the communism he abhorred. He was an early member of the The John Birch Society’s National Council, an advisory group to JBS founder Robert Welch. Koch supported a variety of freedom-related causes, all the while continuing to build the company today known as Koch Industries. Today Koch Industries produces not only a wide range of petroleum-based products and related goods like process equipment, but also has diversified into chemicals, fibers, plastics and forest and consumer products. As Matthew Continetti of The Weekly Standard put it: You wake up in the morning and turn on a light using electricity generated by oil and natural gas that Koch Inwww.theNewAmerican.com

dustries discovered, sold, refined, and delivered to the power plant. You get out of bed and your feet touch a carpet made from Koch polymers. You drink from a paper cup manufactured by Koch. You use a Koch paper towel to clean up water spilled from the cup. You get dressed in Lycra products made by Koch. You leave the house, built from materials that in all likelihood have at some point intersected with a Koch company, and get into a car powered by gasoline made by Koch Industries. You drive to the airport where you get on an airplane using fuel refined at a Koch facility. If the airplane is Air Force One, when you get thirsty you have some coffee from the Koch-produced official presidential coffee cup. You hijack the plane and demand that the pilot take you to a country where there is no Koch presence, no Koch employee, no Koch brand. But he can’t. Fred Koch died in 1967, not long after turning over management of Koch In-

dustries to his son Charles. Were he alive today, he would doubtless be pleased that virulent communism as he knew it has withdrawn from Soviet soil, and that the Soviet Union itself has ceased to exist. He would probably be dismayed, however, that the United States is still enmeshed in the United Nations, and that she has traveled very far down the road to socialist serfdom. He would no doubt perceive the irony that, despite the demise of the Bolsheviks, their program for America, as a wispy little revolutionary explained it to him so long ago, is still very much in force. The process of subversion, corruption, and compromise of liberty continues apace, even if its authors are nowadays known (to the extent that they are recognized at all) by different names. But the occasional Fred Kochs that America is still capable of nurturing — the men of exceptional abilities who somehow avoid being seduced by success and who are willing to hazard all in the fight against organized evil — afford us hope that, after all, truth and right will prevail in the long run. n
39

EXERcISINg THE RIgHT

“... the right of the people to keep and bear Arms, shall not be infringed.”

gang members Shot Dead in home invasion
A home invasion ended with two dead assailants in Hidalgo County, Texas. According to the Brownsville Herald, a press release from County Sheriff Lupe Treviño said that there are no plans to file charges against an unidentified homeowner who shot two suspects who tried to break into his home on April 30. The dead, 20-yearold Jovanny Torres and his 21-year-old brother, Ken Llanes Torres, were confirmed as members of the local “Valluco gang” by the Sheriff’s office. Both men had already died of gunshot wounds by the time deputies reached the scene. Investigators reported that the brothers were allegedly armed with handguns and had kicked in the front door of the home. Once inside, they began assaulting the four residents at home. Unluckily for the intruders, one of the residents kept a handgun for protection and fired at them. Treviño also said that the Sheriff’s office was not going to release the name of the shooter owing to fear of retaliation from other gang members. “I do not want to set up the particular family member for retaliation attacks by the Valluco gang.... The residents were being attacked with a display of deadly force and they responded in kind.” Treviño also said that both suspects had “extensive” serious criminal records.

news, “We believe it was an act of selfdefense.... [The suspect] continued his aggressive behavior towards Mr. Martin and the female victim in this case. Martin took the action he felt was necessary to protect life and property.”

Cabbie Shoots “passenger”
A May 1 article in the St. Petersburg Times detailed how a cab driver in Largo, Florida, defended himself when a passenger pulled a gun on him. The unidentified Yellow Cab driver picked up the 19-yearold suspect, Travonte Myles, just before 3 a.m. Almost immediately, the driver and the suspect became embroiled in an argument. The cabbie, who didn’t want things to escalate, pulled over and told the irate young man to leave his cab. At that moment, Myles pulled out a weapon. The cab driver immediately fled the car, fearing for his life, but the armed Myles followed him. The cabbie pulled out his own pistol and exchanged fire with Myles, hitting the suspect at least three times. Myles was taken to a nearby hospital and is expected to live. Even though Myles fired at the cabbie, the driver was not injured. Police told the news that the cab driver is licensed to carry a concealed weapon and fired in self-defense.

on to say Obama told her, ‘I just want you to know that we are working on it. We have to go through a few processes, but under the radar.’” A man elected on promises of new transparency in government is now working on something as important as gun policy “under the radar.” So what exactly does the President have planned in terms of stealth gun control? A March 15 article at the liberal online site Huffington Post shed some light on the administration’s strategy. Entitled “Obama Looking for Ways Around Congress on Gun Policy,” the Obama-sympathetic writer detailed how the administration is exploring ways to bypass Congress and enact gun control through executive action: The Department of Justice held the first in what is expected to be a series of meetings on Tuesday afternoon with a group of stakeholders in the ongoing gun-policy debates. Before the meeting, officials said part of the discussion was expected to center around the White House’s options for shaping policy on its own or through its adjoining agencies and departments — on issues ranging from beefing up background checks to encouraging better data-sharing. Administration officials said talk of executive orders or agency action are among a host of options that President Barack Obama and his advisers are considering. Apparently the separation of powers enshrined in the Constitution is merely an afterthought to the gun-grabbing crowd. Since the political climate right now is hostile to gun control, the President is content to bypass the will of the people and their elected representatives and instead hand down his anti-gun decrees via executive orders. Sadly, due to the immensely unconstitutional federal government and its accompanying bloated bureaucratic boondoggle, it should be fairly easy for the President to restrict the Second Amendment rights of American citizens with just a swipe of his pen. n — pATrick krey
tHE NEW AMErIcAN • JuNE 20, 2011

Lovers’ Spat
The Orlando Sentinel reported on April 25 that a “Sunday afternoon shooting in Palm Bay has been ruled self-defense and it is the shooting victim who will face charges.” The shooter, 38-year-old David Martin, was trying to protect himself from a man who forced his way into his home to see a woman. The woman was the invader’s girlfriend. The two had been arguing, and she threatened to break up with the man. The suspect, who is on federal probation for drug-related charges, is recuperating in a hospital from a gunshot wound to the chest and will face charges of kidnapping, burglary, and battery. Detective Michael Pusatere told the
40

gun Control by Executive Order?
An exchange between President Obama and a high-profile anti-gun activist has set off alarms among gun-rights advocates. The conversation took place on March 30, when Jim and Sarah Brady visited Capitol Hill. That day was the 30th anniversary of the assassination attempt on Ronald Reagan in which Jim Brady suffered serious injuries. That event led Jim and his wife to form the Brady Campaign to Prevent Gun Violence, which has been the nation’s leading advocate for civilian disarmament. According to a Washington Post article, Sarah Brady recalled that “the President told her he wanted to talk about gun control and ‘fill us in that it was very much on his agenda.’ She went

Border Claims and Other Fables
iTem: In a speech in El Paso, Texas, on May 10, President Obama mocked those who have resisted his policies on illegal immigration and border security. “They wanted a fence. Well, the fence … is now basically complete,” said the President. He predicted, as noted in the official White House transcript, that opponents would probably now say we “need to quadruple the Border Patrol. Or they’ll want a higher fence. Maybe they’ll need a moat. (Laughter.) Maybe they want alligators in the moat. (Laughter.) They’ll never be satisfied.” Moreover, said Obama, “despite a lot of breathless reports” about crime, “El Paso and other cities and towns along this border are consistently among the safest in the nation.” iTem: On the CBS Early Show, on May 11, Bill Plante reported that the President “went all the way to the Mexican border to make the case for immigration reform, trying to get over the heads of the Republicans who are blocking it here in Washington.” Obama, he said without giving any opposing views, “has answered the complaints of Republicans about border security.” After showing a film clip of the President’s deriding of his opponents, Plante went on: “What the President is calling for doesn’t stand a chance in this Congress: the path to citizenship for 11 million undocumented immigrants, a visa reform for students and agricultural workers, and allowing the children of undocumented immigrants to go to college or serve in the military. But Mr. Obama wants to make sure that the independent voters that he’ll need next year know that he’s working on border security, and that the Hispanic voters know who to blame if nothing happens.” c orrecTioN : The President couldn’t get his amnesty and other pro-illegal alien schemes through Congress when his own party held both houses as well as the White House, but that hasn’t stopped him from trying to pin blame on others for holding up his agenda. His opponents,
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he suggested while making fun of Republicans, wouldn’t mind turning borderjumpers into gator food. The fact is that about 70 percent of Americans surveyed have said they oppose his initiatives. Rather than taking another hit to his popularity, Obama went along with the Democrat congressional leadership in both 2009 and 2010 in not bringing an immigration bill to the floor. The President more recently has thrown around enough statistics to muddy the waters of the Rio Grande as part of his attempt to generate support within his political base for the next election. At the same time, he and his Homeland Security Secretary Janet Napolitano are doing what they can to portray themselves as hard-liners on the law. But, as the old line goes, statistics are sometimes like a bikini: What they reveal is suggestive, what they conceal is vital. In this case, the President, to be charitable, is being disingenuous. The claims of the Obama administration belie what is happening on both sides of the Mexican border. The assertion that the border barrier is “basically complete” didn’t draw guffaws from his friendly crowd, but it should have. As columnist Charles Krauthammer scoffed:

“Complete? There are now 350 miles of pedestrian fencing along the Mexican border. The border is 1,954 miles long. That’s 18 percent. And only one-tenth of that 18 percent is the double and triple fencing that has proved so remarkably effective in, for example, the Yuma sector. Another 299 miles — 15 percent — are vehicle barriers that pedestrians can walk right through. Obama then boasted that on his watch 31 percent more drugs have been seized, 64 percent more weapons — proof of how he has secured the border. And for more proof: Apprehension of illegal immigrants is down 40 percent. Down? Indeed, says Obama, this means that fewer people are trying to cross the border. Interesting logic. Seizures of drugs and guns go up — proof of effective border control. Seizures of people go down — yet more proof of effective border control. Up or down, it matters not. Whatever the numbers, Obama vindicates himself. Unfortunately for the President, or fortunately for the truth, there are some actual facts available. Evidence from a govern41

Texas Attorney general greg Abbott was just one of the many who pointed out the fallacies in the claims by Barack Obama and Janet Napolitano about the U.S. border being “secure.”

ment report reveals that less than five percent of the southern U.S. border has secure double fencing. That is not “basically complete.” When there are more than a half-million illegal border-crossings annually, one cannot honestly call the frontier secure. The union representing border agents, the Border Patrol Council, is not buying what Secretary Napolitano is trying to sell — namely, that the border is more secure than ever before. The council says her statements are “wrong and give a false sense of security.” Texas Attorney General Greg Abbott also backs up those working on the border, noting that huge sectors are not secure and that violence along the frontier is mounting. As Abbott put in the Houston Chronicle for May 18: Just three months before the president proclaimed the border secure, the U.S. Government Accountability Office revealed that the Border Patrol still lacks “operational control” over 55 percent of the border. According to the GAO, the Border Patrol ac42

knowledges that more than half of the nation’s 1,954-mile southwest border is “not acceptable for border security.” The situation in Texas is worse. The GAO reported that Texas’ stretch of the border is by far the least controlled — and therefore least secure — of any southwest border state. In the Marfa sector, for example, the Border Patrol exercises operational control over just 10 percent of the border. The director of the Texas Department of Public Safety recently testified to Congress that 70 percent to 90 percent of the Texas-Mexico border “is only being monitored as opposed to managed or controlled” by the Border Patrol. One day following the President’s claim that “he had ‘answered’ our border security concerns — and that cartel violence is really only a problem in Mexico — Texas law enforcement officials told Congress a very different story,” said the Attorney General, who then went on to summarize

a litany of the crimes and violence attested to by the lawmen. The White House apparently hasn’t been able to use its eraser on all the statistics at the Justice Department. To be sure, crime, especially narcotics-related violence, is worse on the Mexican side, but that doesn’t mean the U.S. side of the border is Shangri-La. The latest report of the Executive Office for the United States Attorneys, published last year, observed: “Illegal immigration provides the initial foothold ... which criminal elements, including organized-crime syndicates, use to engage in a myriad of illicit activities ranging from immigration document fraud and migrant smuggling to human trafficking.” The Justice report also pointed out, as columnist Terence Jeffrey has written, that as measured by the number of criminal defendants who were charged during the previous fiscal year, “the five most-crimeridden U.S. judicial districts were all on the Mexican border. These included: Southern Texas, Western Texas, Southern California, Arizona and New Mexico.... There were more than two-and-a-halftimes as many criminals (8,435) charged in federal court in Western Texas, where El Paso is, than in the combined districts of Southern New York (1,959), which includes Manhattan and the Bronx, and the Eastern New York (1,377), which includes Staten Island, Brooklyn, Queens and Long Island.” The United States faces a serious security problem on its northern frontier as well. In fact, the commissioner of the U.S. Customs and Border Protection agency, Alan Bersin, recently told the Senate Judiciary Subcommittee on Immigration, Refugees and Border Security, “In terms of the terrorist threat, it’s commonly accepted that the more significant threat” comes from the U.S.-Canada border. In December 2010, a congressional watchdog issued a report concluding that “the risk of terrorist activity is high” on the northern border. The Government Accountability Office report cites the assessment of the U.S. Border Patrol, saying that in 2010 only 32 of the nearly 4,000 miles
tHE NEW AMErIcAN • JuNE 20, 2011

AP Images

of the U.S.-Canadian border “had reached an acceptable level of control.” Yet, top officials in Washington have been doing their best. They are doing their utmost, that is, to jack up a variety of numbers for political reasons. Certain deportation numbers, for example, needed to be boosted for reporting purposes. Not everybody was fooled. As Iowa Republican Senator Charles Grassley told the Immigration subcommittee in mid-May, even the pro-President Washington Post has disputed the administration’s deportation figures, “alleging they cooked the books to make them seem enforcementminded.” As the Senator alluded, the Post somewhat surprisingly did go into some detail about how U.S. Immigration and Customs Enforcement had realized it “was in jeopardy of falling short of last year’s deportation mark,” so it lengthened a repatriation program by five weeks and otherwise

“scrambled to reach the goal. Officials quietly directed immigration officers to bypass backlogged immigration courts and time-consuming deportation hearings whenever possible.” The administration, reported the liberal paper, pushed officials to get illegal aliens to accept a “voluntary return” option, rather than a deportation hearing for their crimes (offenses other than breaking the immigration laws). Accepting this option, as the paper put it dryly, “doesn’t bar a foreigner from applying for legal residence or traveling to the United States in the future.” One wonders if the President would have gotten a lot of chuckles if he had told the audience in Texas about that numbers game. Meanwhile, don’t look for him to give his next light-hearted homily about illegals in South Los Angeles — which has been virtually taken over by the 18th Street gang and which has grown into a

national threat with up to 50,000 members, according to the U.S. Justice Department. In California, according to a Justice document, “approximately 80 percent of the gang’s members are illegal aliens from Mexico and Central America. The gang is active in 50 cities in 28 states. The gang’s main source of income is retail-level distribution of cocaine and marijuana and, to a lesser extent, heroin and methamphetamine. Gang members also commit assault, auto theft, carjacking, drive-by shooting, extortion, homicide, identification fraud, and robbery.” To judge by his tone, policies, and plans, the President apparently thinks border violence and the involvement of illegal aliens in such crimes is a laughing matter. However, regardless of his suggestion, putting alligators into a border moat to sink their teeth into the problem would not be fair — to the alligators. n — williAm p. hoAr

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Default lies not in our Stars but in Ourselves

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ith the European economy in shambles from a seemingly intractable sovereign debt crisis and the United States technically out of money to fund its own bloated government, talk of sovereign default is in the air. Greece, the beneficiary of the first of three EU/IMF bailouts, is again on the ropes, insisting that it will not be able to meet its June obligations of more than $13 billion in interest payments. The hard-pressed Greek populace, meanwhile, is balking at the range of financial austerities being urged upon them by their government’s creditors, and Greece’s political class is caught in the middle. The financial world is expecting Greece to default eventually, and other EU debtors like Ireland, Portugal, and even Spain to follow suit. Here in the United States, the national debt is around 100 percent of our GDP. There appears to be little political appetite for making serious cuts in the size of the government, yet a significant bloc of Congressmen is vowing to prevent raising the debt ceiling unless cuts are legislated. Meanwhile, the punditry in Washington is insisting that default in any form is not an option; America has never defaulted, goes the official narrative, and isn’t about to start. Should America default, we are told, the consequences would be catastrophic — for the rest of the world as well as for us. Default, broadly defined, is failure to honor the terms of a debt contract. In moral if not in technical legal terms, any unilateral altering of the terms of repayment on the part of a debtor is a species of default. Nations rarely if ever go into open, total default; they instead resort to various time-dishonored tricks to rewrite the rules of indebtedness in their own favor. The most subtle, and withal widespread of these, is inflation — that is, indebted nations simply print their way out of debt. The United States, like every major financial power in the post-gold standard world, has steadily debased the value of the dollar, making service of our vertiginous national debt far easier in the short run than if the monies had to be raised exclusively from direct taxation. Because the dollar has been the world’s reserve currency for several decades, we have enjoyed more political leverage in the debt shell game than other countries. The U.S. Federal Reserve and Treasury Department have created trillions in new money by issuing an almost limitless stream of government debt to a global market eager for the supposed security of the U.S. government’s guarantee to repay with interest.
44

DROW TSAL EHT
by

chArles scAliger

But since the great financial collapse of 2008-2009, the Federal Reserve has abandoned all pretext of restraint, opening the money spigots far wider than ever before, devising entirely new ways of pumping dollars into the world money supply. But signs are growing that the rest of the world is beginning to see the writing on the wall, namely, that even the almighty U.S. dollar will succumb eventually to the rules of economics and go the way of the German mark of the 1920s, and the Zimbabwe dollar and Argentine peso of a more modern era. Global enthusiasm for U.S. “treasuries” is starting to ebb, as investors tumble to the likelihood that the real value of their investment will melt away in the heat of hyperinflation. In point of fact, there is no numinous certainty about American guarantees of good faith. After the Revolutionary War, the paper Continental dollar was inflated almost out of existence. At the onset of the Great Depression, the United States, along with the rest of the Western world, reneged on its pledge to redeem dollars for gold when it abandoned the gold standard that had endured for millennia. The United States wrought great havoc in world markets in 1971 when President Nixon unilaterally repudiated the U.S. commitment to redeem in gold dollars held by foreign investors. All of these episodes constituted serious breaches of faith tantamount to default, and all of them had dire economic consequences both nationally and internationally. This time around, the United States is reduced to three options, only one of which is morally admissible: drastically reducing the size of government and paying off our debts responsibly. The other two are outright repudiation of all or a part of our debt — by unilaterally extending the terms of repayment, for example — or attempting to print our way out of trouble. Across the pond, small countries with far less economic clout, like Greece, Ireland, and Portugal, will probably choose the course of outright default, inflicting ruin and misery on their citizens and triggering a cascade of insolvency among European banks with heavy exposure to worthless government debt. Much of this may come to pass over the next few months, as Greece and the United States both face financial zero hours this summer. Regardless of the timing of the coming meltdown, the United States is faced with a stark choice: Restore fiscal sanity by returning to the discipline of the gold standard and reducing the size and cost of government to constitutionally legitimate limits, or follow the socialist nations of Europe into the economic abyss. n
tHE NEW AMErIcAN • JuNE 20, 2011

First Ten Amendments to the Constitution
Article I.
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances. property, without due process of law; nor shall private property be taken for public use, without just compensation. In all criminal prosecutions the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the state and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtain-ing witnesses in his favor, and to have the assistance of counsel for his defense.

Article VI.

Article II. A well-regulated militia being necessary to the Article III. No soldier shall, in time of peace, be quartered Article IV. The right of the people to be secure in their

security of a free state, the right of the people to keep and bear arms shall not be infringed.

in any house, without the consent of the owner, nor in time of war, but in a manner to be prescribed by law.

Article VII. In suits at common law, where the value in

persons, houses, papers, and effects against unreasonable searches and seizures shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.

controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury shall be otherwise re-examined in any court of the United States, than according to the rules of the common law. excessive fines imposed, nor cruel and unusual punishments inflicted.

Article VIII. Excessive bail shall not be required, nor
The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.

Article V. No person shall be held to answer for a capital, or

otherwise infamous crime, unless on a presentment or indictment of a grand jury, except in cases arising in the land or naval forces, or in the militia, when in actual service in time of war or public danger; nor shall any person be subject for the same offense to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or

Article IX.

Article X. The powers not delegated to the United States by
the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.

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