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The Nation

Lessons for Labor Day

CEO's in the oil and defense industries are making out like profiteering bandits. Wages for American workers are declining while their productivity is rising. Recent polls show that workers feel pessimistic about their economic prospects. And a new US Census Report reveals growing poverty, especially among children.

Happy Labor Day.

The 13th annual "Executive Excess" report from the Institute of Policy Studies (IPS) and United for a Fair Economy indicates that "the CEO's at the top 34 military contractors have enjoyed average paychecks that are double the compensation they received in the four years leading up to 9/11."

George David, CEO of United Technologies – the maker of the Black Hawk helicopter – pocketed $200 million since 9/11, explaining, "Obviously, military was a big bang for us in the post-September 11 period." UTC is currently suing the Pentagon to stop the release of documents pertaining to Black Hawk quality-control problems.

These 34 defense CEO's have been paid nearly $1 billion since 9/11. As soldiers have made the ultimate sacrifice for our nation, the average army private earns $25,000 per year while the average defense CEO makes $7.7 million.

As IPS's Sarah Anderson writes, "Imagine how it must feel to be risking your life every day on the front lines in Iraq, knowing that military contractors are getting grotesquely rich in the comfort of their executive suites? No wonder we're seeing the US Marine Corps having to force their reservists back to the battlefield."

Derrick Jackson of the Boston Globe concludes, "There is no evidence of a [defense] contractor having a soul in the 13th annual Executive Excess CEO survey…."

The oil barons are also enjoying the spoils of our energy crisis. Last year they averaged $32.7 million in compensation, 518 times more than the average oil worker. Chuck Collins and Eric Benjamin write, "Big Oil CEO's should be held to account for their failure to dedicate their mountains of excess cash toward seeking new energy sources that move us beyond fossil fuels."

But the fact is that what is happening in the numb-to-greed defense and oil industries is not dissimilar to the rest of our economy. According to the Washington Post, "the top fifth of American households received 50.4 percent of all income last year, the highest proportion since 1967, when the census bureau started following that trend. The biggest gains were concentrated in the top five percent."

Steven Greenhouse and David Leonhardt write in the New York Times that "wages and salaries now make up the lowest share of the nation's gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960's."

According to Greenhouse and Leonhardt, the median hourly wage since 2003 – adjusted for inflation – has declined 2 percent since 2003 while productivity "has risen steadily over the same period." Moreover, as Paul Krugman points out in an op-ed, "The most crucial benefit, employment-based health insurance, has been in rapid decline since 2000." In fact, according to the Center for American Progress, "the number of people living in the United States without medical insurance rose 2 percent--1.3 million--to a record 46.6 million over the last year alone as health-care costs climbed three times as fast as wages.

Jared Bernstein, of the Economic Policy Institute, told the Times, "If I had to sum it up, it comes down to bargaining power and the lack of ability of many in the work force to claim their fair share of growth.

Nevertheless, George Bush claimed this month, "Things are good for American workers." According to the polls, American workers disagree.

An "overwhelming majority" of adults feel workers have "less job security… than 20 to 30 years ago." A majority feel their incomes are lagging behind inflation. And more than twice as many people feel the economy will worsen next year than believe it will improve.

As AFL-CIO president, John Sweeney, told the Times, "Economic trends have strained working families to the breaking point. Workers are not sharing in the wealth they helped create, and our nation's economic recovery has not been a recovery for workers at all."

Anna Burger of Change to Win added, "These [poll] results tell us that five years into an economic recovery working families are feeling battered and are losing hope for the future."

This week's US Census Report suggests that the American people's perceptions are far more accurate than the galling assertions of the man who would be Hereditary King. In the nation's capital itself, poverty rose in 2005 by more than 10,000 people last year to 104,000. And 1 out of 3 children in the Compassionate President's city now lives in poverty.

According to Krugman, the Census Report indicates "that in 2005, four years into the economic expansion, the percentage of Americans with private insurance of any kind reached its lowest level since 1987."

Our nation has seen some miserable times when it comes to numbness to greed, and we are in another such period now. The question is: what to do?

The civilizing advances in our country, when it comes to working people – child labor laws, collective bargaining rights, Social Security, Medicare, decent and secure pensions, Head Start... all of these were fought for by movements, and then advanced by progressive legislators.

Krugman reaches a similar conclusion, writing that current times call for "a smart, bold populism. All we need now are some smart, bold populist politicians." I'd argue that to fight for shared prosperity isn't really that bold these days--it's really about rebuilding America and its social contract.

So, on this Labor Day 2006, let's support policies and ideas that will make this economy work for those who have helped create this country's wealth. For a start: Stop the assault on labor and strengthen collective bargaining. Then, let's pass universal health care and a living wage, craft trade and industrial policies that create jobs and restore workers' rights, and rebuild our ravaged pension system. These are just a few steps toward a more humane, decent and rational system that would fulfill America's promise.

While too many "New" Democrats have forgotten how to stand up for the working class, there are still enough that this November taking back Congress will mean taking back our country from the GOP's callous policies that have sped the decline of workers in America.

Republicans and Race

One of the few appeals of compassionate conservatism was the hope that it might mark the end of the Republican's race-baiting Southern strategy. Anyone who still believes that hasn't been listening to the Kings of Republican Comedy.

While riffing on the new Survivor series that will divide the teams by ethnic group, Rush Limbaugh trotted out every hoary racial stereotype he could think of. Hispanics "will do what others won't do"; Asians will "outsmart everyone"; and African-Americans will do poorly in swimming.

At a campaign event, Senator Conrad Burns thought it was amusing to joke about the legal status of "the nice little Guatemalan man" who is roofing his house in Virginia. And speaking of Virginia, George Allen has spent the last couple of weeks trying to dig himself out of a huge pile of macaca--a North African racial slur.

But almost as offensive as the word macaca was the way Allen ended his put down of the twenty-year-old S.R. Sidarth: "Welcome to America and the real world of Virginia." Sidarth is a native Virginian, while Allen grew up in southern California. Allen's countrified, tobacco-chewing, Confederate-flag waving persona is the Southern strategy as political self-invention.

One funny thing did result from Allen's routine: The collapse of his presidential hopes. It is proof that the last thing the country wants is another mean-spirited good-ole-boy who likes to dress up as a cowboy.

Arnold Breaks with Bush on Global Warming

California's Republican Governor Arnold Schwarzenegger cleanly broke with the White House yesterday by reaching a broad agreement with state Dems to severely cap greenhouse gas emissions.

California sentators voted along party lines 23-14 to approve the toughest global warming legislation in the country. Democrats voted yes. Republicans voted in unison against their own governor.

Schwarzenegger's pact is the third such major alliance he has forged with the Democrats in the past weeks. They have also agreed on a minimum wage rise as well as a deal on prescription drugs.

The Governor's wheelings and dealings, his continuing consolidation of the political center, comes as he defends a wide lead against his re-election rival, Democrat Phil Angelides.

Angelides has failed too inspire much excitement among Democratic voters and is lagging in the polls. Though the Republicans may be facing a political waterloo in November, here in the Blue State of California, Arnold Schwarzenegger is coasting to a victory under ever bluer skies.

Tunnel Vision

Mr Rumsfeld: ARE we safer, more secure today? NO. Look around the world. You can--once again--pull out that tired page from your playbook and try to divert attention from this administration's reckless, go-it-alone, militarist foreign policy... with your ugly and divisive attacks ... exploiting the Iraq war and the tragedy of 9-11 with poisonously partisan and dangerously misleading rhetoric.

BUT, the bottom line – even according to a good number of retired Generals and conservatives: This administration – and particularly Donald Rumsfeld – has made us less safe. It has diverted resources from an effective fight against terrorism.... It has fueled anti-Americanism, alienated us from our allies, demeaned democracy at home, weakened and divided the United Nations, and unleashed chaos and disorder in the Middle East....

This administration and its leaders (not just Rumsfeld, who once again lashes out like a petulant little boy...or, perhaps, the spoiled son of Dr. Strangelove) misled the people for partisan ends and trampled on our liberties... They looted our treasury through the skyrocketing costs of a war which has killed over 2600 American men and women.... And they now show that they will stop at nothing to insinuate that anyone who speaks out, as a true patriot is called upon to do in times of war and peace, is appeasing the enemy. No, Mr. Rumsfeld, speaking out means holding public officials accountable for their words and deeds.

Let us hope that the American people who, polls show, now understand that the war in Iraq is distinct from fight against terrorism--see through this ugly and historically inaccurate fear-mongering. (We need to understand terrorism, but the category of totalitarianism--communist and fascist, which Rumsfeld and other Bush officials resort to, obscures more than it illuminates.)

We need to extricate ourselves from a war that is undermining our security. We need to extricate ourselves from the idea that the war on terror provides a new organizing principle for our foreign policy. Above all, in the short term, we need to extricate ourselves from an Administration that uses fear to hold on to power–-amidst the rubble of their failed policies.

The Battle Over Reconstruction

Charles Jackson, media coordinator for the Association of Community Organizations for Reform Now (ACORN), was anxious last week as today's anniversary of Hurricane Katrina approached. The city had declared that on this day it would seize whatever homes had not yet been cleaned-up or reclaimed in order to resell and/or demolish them – without even notifying the former residents.

"We are trying to get the deadline extended to November," Jackson said. "Why hit people with another act of devastation on the anniversary? How about a little compassion?"

But compassion has been in as short supply as clean water in the Lower 9th Ward over the last year. ACORN had 9,000 member families in New Orleans when Katrina hit, and one year later 7,500 have not yet returned. It looked as though they might not have homes to return to at all.

However, yesterday marked a small victory for ACORN. The New Orleans City Council amended its seizure order so that residents with homes scheduled for gutting and cleaning by ACORN (or 15 other groups) will be deemed in compliance (it should be noted that the city is not providing any funds to groups like ACORN for this vital work). For homes not yet scheduled for clean-up, the city will attempt to contact the owners twice in 60 days before proceeding to take possession of the property. Jackson says that ACORN didn't get everything it wanted with this compromise but at least it stopped the bulldozers for now.

"We had already fought to get the anniversary deadline amended so that the Lower 9th residents and the elderly were exempted due to hardship," Jackson says. "But what about New Orleans East and other parts of the city? We've literally got neighborhoods with thousands of homes where we've been able to get, maybe, one family back. Lower-income families can't even afford the transportation to come back here. Now at least we've gained a little more protection for struggling families we are working with."

The work to protect homeowners, tenants and neighborhoods began in the immediate aftermath of the disaster when Mayor Ray Nagin announced that the city would demolish approximately 50,000 homes in the wake of the flooding. In December, the city was set to bulldoze the first 2,500 homes when ACORN members won a settlement requiring that homeowners be notified and given the opportunity to appeal before any action is taken.

That same month, ACORN launched its "Home Clean-Out Demonstration Program" to handle the work that the government is still failing to do. ACORN crews clean out debris, gut the interior of homes, eradicate mold and provide roof repair free of charge (ACORN spends an average of $2,500 per home). Without this remediation, many of the homes would deteriorate beyond repair. Which, perhaps, is exactly the result being hoped for by some power elites in the city.

As of August 1, ACORN crews had cleaned and gutted 1,450 homes. There are more than 1,000 homes on the waiting list. More than 5,000 volunteers have helped with the project, including students on spring break, and workers from the AFL-CIO, and the Canadian Autoworkers Union.

"At the program's peak we were gutting hundreds of homes per week," Jackson says. "Now that's down to maybe 20-30 homes per week. Volunteers can't afford the skyrocketing hotel prices and FEMA closed Camp Algiers in July."

Camp Algiers housed volunteers in town to help with the cleanup and rebuilding efforts, so it was a vital resource for groups like ACORN, Catholic Charities, Common Ground, and Habitat for Humanity. But a cut in funding has shut the camp down.

"We're hopeful though that with the anniversary, and the Spike Lee documentary, people will refocus their efforts to get down here, support our work financially, do whatever they can to help New Orleans come back," Jackson says.

In addition to the clean-up work, ACORN has gained a place at the table for long-term planning efforts. Not surprisingly, it looked early on as if low- and middle-income families would be shut out of the process. The Mayor's "Bring New Orleans Back Commission" proposed to direct resources first to the areas that received little or no flood damage. Other neighborhoods had from January to May to "prove their viability."

Jimmy Reiss, a member of the Commission articulated ACORN members' worst nightmare when he said: "Those who want to see the city rebuilt want to see it done in a completely different way: demographically, geographically, and politically."

ACORN didn't wait for more bad news. Instead it met with city planning partners from Cornell University, the Pratt Institute, and Louisiana State University to solicit input on rebuilding. The organization also held community meetings with displaced New Orleanians in the cities where they were currently relocated. This collaborative effort produced detailed plans for the neighborhoods of the Lower 9th Ward and New Orleans East. On July 21st ACORN Housing was recognized as one of 16 "official" New Orleans planning teams. The planning teams will submit neighborhood plans to the Mayor and City Council and – upon approval – will be part of the Unified New Orleans Plan" to direct resources for rebuilding as well as serving as the city's long-term vision.

Jackson says this victory cannot be overstated: "It means the people's voices are being heard."And none too soon, either.

According to the Institute for Southern Studies, as of June 30 only 37 percent of New Orleans pre-storm population of 460,000 had returned; no federal funds had been dispersed to rebuild homes – zero; and the New Orleans suicide rate had increased 300 percent since the hurricane.

"We are committed to staying here until the job is done," Jackson says. "But we're also trying to get the word out: 1 year later, all is not well here."

The small victories of ACORN and its allies have been hard-earned. As Chris Kromm writes in this week's issue of The Nation, "Ask Gulf activists what it will take to turn around the region's fortunes, and many will come back to the idea that the Katrina movement must go national – even international." Regarding the international perspective, the Institute for Southern Studies indicates that legal scholars believe that 16 of the 30 UN Principles guiding the handling of "Internally Displaced People" were violated in the case of Katrina.

To help ensure that the suffering of Katrina victims is not compounded by greed and opportunism, there are actions you can take: Contribute financially or Adopt a Home; volunteer with the Home Clean-out Demonstration Program; or contact your federal representatives via the ACORN Legislation Action Hotline at 800-643-9557.

One year after the initial devastation, be a part of the movement to demand that the rebuilding of New Orleans is undertaken in accord with our greatest democratic principles.

EPA To New Orleans: Relax!

On the one-year anniversary of Hurricane Katrina, we're not hearing much about the "toxic gumbo" -- a term reportedly first coined by reporter Ron Nixon, who has written for The Nation -- that flooded New Orleans and surrounding areas. In the months after the storm, there was a plenty of coverage of the chemicals stirred up by Katrina; years of industry's reckless dumping on Louisiana's poor and black communities wrought a horrifying, carcinogenic soup of oil, gasoline, asbestos, raw sewage, cyanide, chlorobenzene and numerous other toxins, according to numerous experts who monitor pollution in the region. As Nicole Makris noted at the timeon Alternet, it was expected to be the EPA's biggest cleanup yet. Much of the sludge was released into Lake Pontchartrain and the Mississippi River without treatment, which is, clearly, disturbing. Everyone agreed that more study was needed -- after all, in the chaos of humanitarian crisis, who had time to take water and soil samples. But some time has passed. One year later, what has our government discovered about this sludge and its effects on human health?

Going against the tired conventional wisdom yet again, the Bushies have found that, just like global warming, it's no big deal. A report recently released by the Bush Administration's Environmental "Protection" Agency found that the sediments left over from Rita and Katrina were "not expected to cause adverse health impacts to individuals returning to New Orleans." If you're reassured by that, perhaps you're a potential client for FEMA rolling head Michael Brown, who did such a "heck" of a job that he now runs his own disaster relief consultancy. Amazingly, this enterprise -- which you'd think would be about as viable as a daycare center run by Michael Jackson -- is a success. According to the New York Times, "Brownie" has about half a dozen clients and expects to earn "significantly more" in his new gig than he did as FEMA director (for which he scammed a government handout of $148,000 annually).

Course Correction

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The New York Times carried a very important news story today asits front-page lead. It revealed in devastating detail how Americanworkers have lost ground on wage incomes during thisso-called economic recovery. Only it's not news really. You might say,it represents an elaborate "correction" on Page One. Long overdue, butwelcomed and I think of great significance.

Until now, the Times, like most leading newspapers, has stuckwith the orthodox economist's view of what has occurred during thelopsided recovery engineered by George W. Bush and Alan Greenspan atthe Federal Reserve. Profits booming, productivity improving smartly,robust GDP growth. What's not to like?

Times editors did not seem to notice the dark side of thisstory--the negative impact on the wages of Americans in non-supervisoryjobs (that's 82 percent of the workforce). Their wages stagnated andeven declined in real terms, discounted for inflation. This helpsexplain why typical Americans did not join the cheering--they arelosing ground and borrowing more to keep afloat. Last year for thefirst time since 1933, the family balance sheet went negative, that is,negative savings.

I congratulate the two skillful reporters who produced the article--Steven Greenhouse, who covers labor, and David Leonhardt, who coverseconomics--and congratulate the Times for giving it the playthese facts deserve.

But I am left with this question: Why now? These facts have beenvisible for at least three or four years. I have written variations onthe same theme numerous times in The Nation [see for example "The One-EyedKing," on the actual impact of Greenspan's long reign at the Fed.The Economic Policy Institute,probably the most respected think tank with a liberal-laborperspective, has expertly described what going on again and again. Sohave other voices.

What changed at the Times? I think we are witnessing animportant "course correction" in the approved perspective shared andsanctioned among governing elites. "Correct thinking" is changing amongthe influentials. Nothing confirms this so much as the New YorkTimes changing its view of things.

The facts have been quite stark for years, but to recognize what washappening to wages would open a taboo subject--globalization'sdevastating impact on America's broad middle class. If elitesacknowledged that connection, not to mention harsh disloyalties toworkers practiced by the leading US corporations, the policy thinkersand politicians might have to address the larger political question:What, if anything, does the government intend to do to reverse thislong-running trend of deterioration?

The mainstream press, as I have written more than once, mainly takesits cues from the top-approved authorities and orthodox experts. Thisseason, reporters and editors could observe that several heavyweightinfluentials are beginning to acknowledge the wage reality, albeit in acautious, euphemistic manner.

FormerTreasury Secretary Robert Rubin of Citigroup, leading correctthinker for Democrats, launched the Hamilton Project to examine swelling inequality and relatedquestions. Early this month, Bush's new Treasury secretary HenryPaulsen startled the press by also acknowledging the seriousness of thewage deterioration. Even the new Fed chairman Ben Bernanke took a swing at the problem last week.

In short, it's now okay to for the mainstream to talk about thesubject. They won't be called heretics or protectionists orbackward-thinking Luddites. This is genuine progress. We are not thereyet, but the country is at least creeping slowly toward an honestdebate about America's role in the global trading system.

If my analysis is correct, we may soon even see Times columnistThomas Friedman write about the broad deterioration of US wages. He isthe preeminent cheerleader for the global system that exists, but Ihave never seen him address the wage question frontally beyond tellingworkers they need to get better educated. I can't wait to hear what hehas to say.

After the Storm

The anniversary of Hurricane Katrina is approaching on Tuesday and with much of New Orleans still in ruins, many people are asking how so much of a major American metropolis could be abandoned for so long. A year after the costliest natural disaster in US history, vast stretches of the Gulf Coast are still largely vacant, and some are starting to wonder whether the destruction may be permanent.

As the Washington Post reported, tallies of electric bills and school enrollment figures show that less than half of New Orleans's pre-storm population of 455,000 has returned. The population of adjacent St. Bernard Parish has shrunk from 65,000 to less than 20,000. In small towns along the Mississippi Coast from Bay St. Louis to Biloxi, fewer than 5 percent of destroyed homes are being rebuilt. The clean-up has been so slow that nearly a third of the hurricane trash in New Orleans has yet to be picked up, according to federal Gulf Coast Recovery Coordinator Donald E. Powell.

Again, the question: Why? The Black Activist Coalition on Katrina and the People's Hurricane Relief Fund say that the astoundingly incompetent response is an example of "the monumental failure of the US government to protect and respect the lives of blacks and the poor" and "the direct result of the institutional dimensions of race, class, and gender oppression inherent in the US government...throughout its 230 year history."

In response, these two groups, in alliance with a raft of local grassroots organizations, have launched a campaign to convene an International Tribunal on Katrina and the human rights abuses of the US government. This tribunal is expected to be held in New Orleans in early 2007. (A specific date has not been determined, but the committee is investigating March 30th and 31.)

One of this coalition's main demands is for real transparency in the reconstruction process. "Citizens must know where all the monies are being spent and with whom they are being spent." Another big one is the creation of public-works jobs for the displaced workers of New Orleans and the Gulf Coast at union wages "so that our population is no longer characterized by extreme poverty." Click here or call 601-353-5566 for more info, to sign on as an endorser, and to contribute time, resources and funds.

ACORN New Orleans, one of the many institutional endorsers of the tribunal call, has been on the ground in the Crescent City for twenty-nine years. It's provided free tax services, led living wage campaigns, galvanized drives to keep lead poisoning out of schools and lobbied for voting rights and affordable housing. After the levees broke, it created the Katrina Survivors Association, the first nationwide organization of displaced New Orleans residents and other Katrina survivors. The idea is to unite members of disparate affected communities to use public pressure, direct action, and dialogue with elected officials and public policy experts to win a voice for the survivors in future planning and funding decisions in order to build stronger communities for more than just the rich and well-connected.

In fact, as America briefly refocuses on the disaster, it's critical to frame the discussions in terms of class, race and unequal opportunity in America and to build support for real change. That's the mission of the Opportunity Agenda, which has created a nifty activist Tool Kit, designed to highlight vast class differences revealed by Katrina and advance solutions to expand chances for equal opportunity in the Gulf Coast region and beyond.

Here are some of the ideas:

**Visit www.katrinaaction.org to find information, connect with local organizations and learn about actions that affect housing, health, jobs, and other related issues.

**Organize friends, family, and colleagues to watch Spike Lee's HBO documentary, When the Levees Broke: A Requiem in Four Acts. It will be shown on HBO cable on August 29th. (Or rent it at Netflix.) Afterwards, talk about ways you can take practical actions. Visit www.katrinaaction.org for discussion questions.

**Help ensure that news media tell the real story of Katrina and its aftermath and continue to offer balanced reporting on the issue. Call your local news and radio talk shows, and write letters to the editor. (For pointers, Fairness and Accuracy In Reporting has an online kit with contact information for media outlets and sample letters.)

**Got five minutes a week? Join the Katrina Information Network. KIN members commit to five minutes a week to send emails to their network and to policymakers to keep these issues on the public agenda.

On the creative front, the most innovative project I've seen coming out of the catastrophe is the New Orleans Kid Camera Project. Created to address the psychological and emotional impact of Hurricane Katrina on children returning home to New Orleans, the project fosters photography, creative writing and mixed media as means for children to explore their environment and express themselves, their stories and feelings. Check out the latest gallery of the kids' work here and then click here to support future efforts.

There are innumerable Katrina memorial events over the next few days--in the Gulf region and nationwide. The Human Rights Network has a good list as does United for Peace. The Sun Herald is the place to look for anniversary events in South Mississippi and check WAFB TV's site for a close-to-comprehensive list for New Orleans and Baton Rouge.

Finally, if you want to donate money to help the tens of thousands of Hurricane Katrina survivors still homeless and in great need, see the American Institute of Philanthropy's guide to find the best ways to help the victims, and check out the Network for Good's suggestions on Katrina giving. Habitat for Humanity is also a good recipient. It's been on the ground for virtually the last twelve months helping to rebuild the homes of those way down on the government's priority lists. Giving to Habitat will get your money to the right place.

The Meaning of the Armitage Leak in the Plame Case

One mystery solved.

It was Richard Armitage, when he was deputy secretary of state in July 2003, who first disclosed to conservative columnist Robert Novak that the wife of former ambassador Joseph Wilson was a CIA employee.

A Newsweek article--based on the new book I cowrote with Newsweek correspondent Michael Isikoff, Hubris: The Inside Story of Spin, Scandal and the Selling of the Iraq War--discloses that Armitage passed this classified information to Novak during a July 8, 2003 interview. Though Armitage's role as Novak's primary source has been a subject of speculation, the case is now closed. Our sources for this are three government officials who spoke to us confidentially and who had direct knowledge of Armitage's conversation with Novak. Carl Ford Jr., who was head of the State Department's intelligence branch at the time, told us--on the record--that after Armitage testified before the grand jury investigating the leak case, he told Ford, "I'm afraid I may be the guy that caused the whole thing."

Ford recalls Armitage said he had "slipped up" and had told Novak more that he should have. According to Ford, Armitage was upset that "he was the guy that fucked up."

The unnamed government sources also told us about what happened three months later when Novak wrote a column noting that his original source was "no partisan gunslinger." After reading that October 1 column, Armitage called his boss and long-time friend, Secretary of State Colin Powell, and acknowledged he was Novak's source. Powell, Armitage and William Taft IV, the State Department's top lawyer, frantically conferred about what to do. As Taft told us (on the record), "We decided we were going to tell [the investigators] what we thought had happened." Taft notified the criminal division of the Justice Department--which was then handling the investigation--and FBI agents interviewed Armitage the next day. In that interview, Armitage admitted he had told Novak about Wilson's wife and her employment at the CIA. The Newsweek piece lays all this out.

Colleagues of Armitage told us that Armitage--who is known to be an inveterate gossip--was only conveying a hot tidbit, not aiming to do Joe Wilson harm. Ford says, "My sense from Rich is that it was just chitchat." (When Armitage testified before the Iran-contra grand jury many years earlier, he had described himself as "a terrible gossip." Iran-contra independent counsel Lawrence Walsh subsequently accused him of providing "false testimony" to investigators but said that he could not prove beyond a reasonable doubt that Armitage's misstatements had been "deliberate.")

The Plame leak in Novak's column has long been cited by Bush administration critics as a deliberate act of payback, orchestrated to punish and/or discredit Joe Wilson after he charged that the Bush administration had misled the American public about the prewar intelligence. The Armitage news does not fit neatly into that framework. He and Powell were not the leading advocates of war in the administration (even though Powell became the chief pitchman for the case for war when he delivered a high-profile speech at the UN). They were not the political hitmen of the Bush gang. Armitage might have mentioned Wilson's wife merely as gossip. But--as Hubris notes--he also had a bureaucratic interest in passing this information to Novak.

On July 6--two days before Armitage's meeting with Novak--Wilson published an op-ed in The New York Times on July 6, 2003, that revealed that he had been sent by the CIA to Niger to investigate the charge that Iraq had been trying to buy uranium in that impoverished African nation. Wilson wrote that his mission had been triggered by an inquiry to the CIA from Vice President Dick Cheney, who had read an intelligence report about the Niger allegation, and that he (Wilson) had reported back to the CIA that the charge was highly unlikely. Noting that President George W. Bush had referred to this allegation in his 2003 State of the Union speech, Wilson maintained that the administration had used a phoney claim to lead the country to war. His article ignited a firestorm. That meant that the State Department had good reason (political reason, that is) to distance itself from Wilson, a former State Department official. Armitage may well have referred to Wilson's wife and her CIA connection to make the point that State officials--already suspected by the White House of not being team players--had nothing to do with Wilson and his trip.

Whether he had purposefully mentioned this information to Novak or had slipped up, Armitage got the ball rolling--and abetted a White House campaign under way to undermine Wilson. At the time, top White House aides--including Karl Rove and Scooter Libby--were trying to do in Wilson. And they saw his wife's position at the CIA as a piece of ammunition. As John Dickerson wrote in Slate, senior White House aides that week were encouraging him to investigate who had sent Joe Wilson on his trip. They did not tell him they believed Wilson's wife had been involved. But they clearly were trying to push him toward that information.

Shortly after Novak spoke with Armitage, he told Rove that he had heard that Valerie Wilson had been behind her husband's trip to Niger, and Rove said that he knew that, too. So a leak from Armitage (a war skeptic not bent on revenge against Wilson) was confirmed by Rove (a Bush defender trying to take down Wilson). And days later--before the Novak column came out--Rove told Time magazine's Matt Cooper that Wilson's wife was a CIA employee and involved in his trip.

Bush critics have long depicted the Plame leak as a sign of White House thuggery. I happened to be the first journalist to report that the leak in the Novak column might be evidence of a White House crime--a violation of the little-known Intelligence Identities Protection Act, which makes it a crime for a government official to disclose information about an undercover CIA officer (if that government official knew the covert officer was undercover and had obtained information about the officer through official channels). Two days after the leak appeared, I wrote:

Did senior Bush officials blow the cover of a US intelligence officer working covertly in a field of vital importance to national security--and break the law--in order to strike at a Bush administration critic and intimidate others?

And I stated,

Now there is evidence Bushies used classified information and put the nation's counter-proliferation efforts at risk merely to settle a score.

The Armitage leak was not directly a part of the White House's fierce anti-Wilson crusade. But as Hubris notes, it was, in a way, linked to the White House effort, for Amitage had been sent a key memo about Wilson's trip that referred to his wife and her CIA connection, and this memo had been written, according to special counsel Patrick Fitzgerald, at the request of I. Lewis Scooter Libby, the vice president's chief of staff. Libby had asked for the memo because he was looking to protect his boss from the mounting criticism that Bush and Cheney had misrepresented the WMD intelligence to garner public support for the invasion of Iraq.

The memo included information on Valerie Wilson's role in a meeting at the CIA that led to her husband's trip. This critical memo was--as Hubris discloses--based on notes that were not accurate. (You're going to have to read the book for more on this.) But because of Libby's request, a memo did circulate among State Department officials, including Armitage, that briefly mentioned Wilson's wife.

Armitage's role aside, the public record is without question: senior White House aides wanted to use Valerie Wilson's CIA employment against her husband. Rove leaked the information to Cooper, and Libby confirmed Rove's leak to Cooper. Libby also disclosed information on Wilson's wife to New York Times reporter Judith Miller.

As Hubris also reveals--and is reported in the Newsweek story--Armitage was also the source who told Washington Post reporter Bob Woodward in mid-June 2003 that Joe Wilson's wife worked at the CIA. Woodward did not reveal he had learned about Wilson's wife until last November, when he released a statement recounting a conversation with a source (whom he did not name). Woodward acknowledged at that time that he had not told his editors about this interview--and that he had recently given a deposition to Fitzgerald about this conversation.

Speculation regarding Woodward's source quickly focused on Armitage. Last week, the Associated Press disclosed State Department records indicating that Woodward had met with Armitage at the State Department on June 13, 2003. In pegging Armitage as Woodward's source, Hubris cites five confidential sources--including government officials and an Armitage confidant.

Woodward came in for some harsh criticism when he and the Post revealed that he had been the first reporter told about Wilson's wife by a Bush administration official. During Fitzgerald's investigation, Woodward had repeatedly appeared on television and radio talk shows and dismissed the CIA leak probe without noting that he had a keen personal interest in the matter: his good source, Richard Armitage, was likely a target of Fitzgerald. Woodward was under no obligation to disclose a confidential source and what that source had told him. But he also was under no obligation to go on television and criticize an investigation while withholding relevant information about his involvement in the affair.

Fitzgerald, as Hubris notes, investigated Armitage twice--once for the Novak leak; then again for not initially telling investigators about his conversation with Woodward. Each time, Fitzgerald decided not to prosecute Armitage. Abiding by the rules governing grand jury investigations, Fitzgerald said nothing publicly about Armitage's role in the leak.

The outing of Armitage does change the contours of the leak case. The initial leaker was not plotting vengeance. He and Powell had not been gung-ho supporters of the war. Yet Bush backers cannot claim the leak was merely an innocent slip. Rove confirmed the classified information to Novak and then leaked it himself as part of an effort to undermine a White House critic. Afterward, the White House falsely insisted that neither Rove nor Libby had been involved in the leak and vowed that anyone who had participated in it would be bounced from the administration. Yet when Isikoff and Newsweek in July 2005 revealed a Matt Cooper email showing that Rove had leaked to Cooper, the White House refused to acknowledge this damning evidence, declined to comment on the case, and did not dismiss Rove. To date, the president has not addressed Rove's role in the leak. It remains a story of ugly and unethical politics, stonewalling, and lies.

A NOTE OF SELF-PROMOTION: Hubris covers much more than the leak case. It reveals behind-the-scene battles at the White House, the CIA, the State Department, and Capitol Hill that occurred in the year before the invasion of Iraq. It discloses secrets about the CIA's prewar plans for Iraq. It chronicles how Bush and Cheney reacted to the failure to find WMDs in Iraq. It details how Bush and other aides neglected serious planning for the post-invasion period. It recounts how the unproven theories of a little-known academic who was convinced Saddam Hussein was behind all acts of terrorism throughout the world influenced Bush administration officials. It reports what went wrong inside The New York Times regarding its prewar coverage of Iraq's WMDs. It shows precisely how the intelligence agencies screwed up and how the Bush administration misused the faulty and flimsy (and fraudulent) intelligence. The book, a narrative of insider intrigue, also relates episodes in which intelligence analysts and experts made the right calls about Iraq's WMDs but lost the turf battles.

And there's more, including:

* how and why the CIA blew the call on the Niger forgeries

* why US intelligence officials suspected Iranian intelligence was trying to influence US decisionmaking through the Iraqi National Congress

* why members of Congress on both sides of the aisle who doubted the case for war were afraid to challenge the prewar intelligence

* how Cheney and his aides sifted through raw intelligence desperately trying to find evidence to justify the Iraq invasion

* how Karl Rove barely managed to escape indictment with a shaky argument.

And there's more beyond that. In other words, this is not a book on the leak case. It includes the leak episode because the leak came about partly due to the White House need to keep its disingenuous sales campaign going after the invasion. Feel free to see for yourself. The book goes on sale September 8. Its Amazon.com page can be found here.

This was posted at my blog at www.davidcorn.com.