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The Houston company was part of the biggest "big idea" of the past decade.
Let's say there was a school system or a chain of clinics on whose professional staff were a certain number of men who molested the children in their care and who, whenever this behavior came to the attention of their superiors, were shifted to another school or clinic, with parents and colleagues, not to mention the justice system, kept in the dark whenever possible. Imagine that this practice continued for thirty years through a combination of out-of-court settlements, sympathetic judges and politicians, stonewalling lawyers, suppression of information, fulminations against the media. Don't you think that when the story finally broke, the men who had made and implemented the policy would be held legally responsible--for something? Certainly they would lose their jobs.
Bring God into the picture, though, and everything changes. The bishops who presided over the priestly pedophilia in the Catholic Church's ever-expanding scandal are not likely to follow Boston's Father Geoghan, convicted and sentenced to nine to ten years and facing more charges, into the dock, much less the cellblock. After all, they are men of God. Thanks to God, the Catholic Church can run a healthcare system--10 percent of private hospitals in the United States--that refuses to practice modern medicine where women are concerned: not just no abortion but also no birth control, no emergency contraception for rape victims, no sterilization, no in vitro fertilization. The church can agitate against the use of condoms to prevent the spread of AIDS, even in desperate Africa, a position as insane as South African President Thabo Mbeki's stance against antiretroviral AIDS drugs, but that generates a lot less outrage in the West. It can lobby in Ireland against allowing suicidal women to have abortions and intimidate a 14-year-old rape victim in Mexico into carrying to term; it can practice total sex discrimination, barring women from the priesthood and therefore from sharing in the political life of the church, and still demand to be taken seriously when it speaks of human rights or ethics--rather like the Philadelphia parochial school recently reported as giving academic extra credit to students who march in antiabortion-rights demonstrations even as the church goes after public funding through vouchers. No secular institution could get away with any of this, any more than a secular psychotherapist or family counselor could get away with telling poor mad Andrea Yates what the Protestant evangelist Michael Peter Woroniecki did: that Eve was a witch whose sin required atonement in the form of perfect motherhood and that working mothers are "wicked."
Another example: Let's say a group of Americans decide that they would like to live where they believe their ancestors lived 2,000 years ago, even though other people have been living there for centuries and don't like the idea one bit. If these people were Cajuns who wanted to park themselves in the Bois de Boulogne, everyone would think they were out of their minds. If they were American blacks taking over swatches of Ghana, people--including many black people--would laugh at their historical pretensions and militaristic grandiosity. It would certainly be a relevant point that these settlers are not displaced persons or refugees--they have perfectly good homes already. But once again, God changes everything: The former Brooklynites, Philadelphians and Baltimoreans now camping out in "Judea" and "Samaria" (the West Bank to you) wave the Bible and the Israeli government lavishes on them all sorts of privileges--cheaper mortgages, income tax breaks, business development and housing grants--with results that are disastrous for Israel and Palestinians alike and that now threaten the peace of the entire world. In a recent front-page story, the New York Times treated the longing of Palestinians in the West Bank and Gaza to return to their homes in Israel proper as a psychological obstacle to their forging any kind of rational future, individual or collective, and maybe it is-- maybe it would be better for them to forget the old homestead and demand reparations. But at least the old woman mourning a sewing machine left behind when she fled Beersheba fifty years ago really, personally owned that sewing machine; the family picnicking year after year in the ruins of its former property has living memories of farming that plot of land. It is not a notional "ancestral" possession supposedly guaranteed in perpetuity by God. In this case, the religious fanaticism is not coming from the Muslims.
Elsewhere, of course, it is. God has been particularly busy in the Islamic world, building madrassahs, issuing fatwas, bringing in Sharia with its bloody stumps and beheadings and floggings and stonings--seventeen people have been stoned to death so far under the "progressive" Khatami regime in Iran--and underwriting a wide variety of dictators and monarchs and warlords. When gods start multiplying, matters don't improve: Polytheistic Hindu zealots have slaughtered 700 people, including many children, in revenge for the torching by Muslims of a train carrying Hindus from the site of the Ayodhya mosque, destroyed by a Hindu mob in 1992 because it supposedly occupied the site where the god-king Ram was supposedly born. As I write, Hindu fanatics are threatening to fight Muslims for a strand of beard hair preserved in a Muslim shrine in Srinagar, which they claim belongs not to Mohammed but to Hindu religious leader Nimnath Baba. How many children will be burned to death over the proper attribution of that holy facial hair?
Think of all the ongoing conflicts involving religion: India versus Pakistan, Russia versus Chechnya, Protestants versus Catholics in Northern Ireland, Muslim guerrillas in the Philippines, bloody clashes between Christians and Muslims in Indonesia and Nigeria, civil war in Sudan and Uganda and Sri Lanka, in which last the Buddhist Sinhalese show a capacity for inflicting harm on the admittedly ferocious Hindu Tamils that doesn't get written up in Tricycle. It's enough to make one nostalgic for the cold war--as if the thin film of twentieth-century political ideology has been stripped away like the ozone layer to reveal a world reverting to seventeenth-century-style religious warfare, fought with twenty-first-century weapons. God changes everything.
On February 21 the California Public Employees Retirement System stunned financial markets in Asia when it said it would withdraw its $450 million investments in publicly traded companies in Indonesia, Thailand, the Philippines and Malaysia to comply with new investment guidelines on human rights, labor standards and other political factors.
But the new guidelines don't apply to the fund's substantial investments in private equity markets, including its $475 million stake in the Carlyle Group--nor does CalPERS, the nation's largest public pension fund, see any reason why it should. "I don't have any moral reservations at all" about Carlyle, said Michael Flaherman, chairman of the investment committee of CalPERS.
The $151 billion CalPERS retirement fund, the largest such fund in the world, is invested on behalf of California's 1.2 million state workers and includes $35 billion invested overseas. The fund's relationship with Carlyle began in 1996; over the next four years it invested $330 million in two Carlyle funds, including $75 million in Carlyle Asia Partners. The relationship deepened last spring when CalPERS invested $175 million to buy a 5.5 percent stake in Carlyle. The relationship--so close that CalPERS owns the elegant office building in Washington, DC, where Carlyle's headquarters are located--is far more important to Carlyle than it is to CalPERS, industry analysts said. "CalPERS is called an anchor investor," explained David Snow, editor of PrivateEquityCentral.net, an industry newsletter. "When Carlyle goes to other investors, they can say CalPERS is in."
Carlyle's experience with CalPERS has apparently whetted its appetite for labor pension money. According to an official close to Carlyle, the bank is raising money for a $750 million fund to invest in "worker-friendly companies." Of that total, Carlyle hopes to attract at least $250 million in labor pension money, the official said. Questions about pension fund investments in private equity have become more relevant since the collapse of Enron, with which CalPERS had extensive private business partnerships. Several unions, including the Service Employees International Union (SEIU), strongly opposed the partnerships as well as CalPERS investments in Enron stocks and bonds. Those concerns included Enron's support for energy privatization, its employment of former government officials to lobby for privatization and its sordid human rights record in India. (CalPERS made $133 million from one Enron partnership and may see a gain on another; it lost $105 million on its stock and bond holdings.)
Within the labor movement, CalPERS is highly respected for its cooperation in challenging managers and corporations suspected of violating human rights or abusing workers. In 1999 CalPERS supported two union-backed candidates for the board of Maxxam during a bitter strike by the United Steelworkers of America (USWA). Two years ago CalPERS joined the AFL-CIO in an investors' boycott when the Chinese government and Goldman Sachs took Petrochina, a state-owned oil company, public. The fund's new standards for public investments in emerging markets are the culmination of more than two years of sometimes fierce internal debate. CalPERS investment managers must now consider a wide range of non-economic factors, including a country's political stability, financial transparency and record on labor standards, workers' rights and building democracy. Based on a review by Wilshire Associates, the CalPERS pension consultant, thirteen emerging markets, including Turkey, South Korea and South Africa, passed the test, compared with four that failed. The fund had already banned its managers from investing in publicly traded companies in China and India. "CalPERS is taking more steps in this direction than any pension fund we know about," said Damon Silvers, the AFL-CIO's associate general counsel who focuses on investment strategy.
In December Carlyle sent its three founding partners to Sacramento to brief the CalPERS investment board. One, David Rubenstein, made passing reference to the budding media interest in Carlyle, noting that Carlyle's activities are "visible and under increasing scrutiny." To protect the Carlyle and CalPERS names, he assured the board that Carlyle is "following the highest ethical standards" by "avoiding investments in industries including tobacco, gambling and firearms."
But Carlyle's deep involvement with the military-industrial complex and its ties to the Bush Administration continue to raise questions. Both the SEIU and the Communications Workers of America are collecting information on Carlyle to provide to their pension trustees.
Down the road, Carlyle's investments in Asian companies facing downsizing, manufacturers in China and military conglomerates in Turkey could present serious dilemmas. It's not hard to find contradictions: Carlyle already has investments in China, which is on the CalPERS blacklist for public stock markets, and it is gearing up for more. Liu Hong-Ru, a former official with China's central bank who sits on Carlyle's Asian Advisory Board, is a senior adviser to Petrochina, the company whose public offering CalPERS boycotted in 2000. Until last year, Carlyle was the official adviser to Saudi Arabia's offset program, which allows buyers of US military hardware to use their purchasing power to pressure companies to transfer technology and jobs to their economies. "In effect, Carlyle was telling another country how to leverage their purchases of military equipment in ways that create the most jobs in that country, not this country," said Randy Barber, an expert on offsets at the Center for Economic Organizing in Washington.
Some trade unionists also know from experience that private equity funds aren't the best judge of what constitutes a worker-friendly environment. In 1998 several unions involved with CalPERS were shocked to learn that CalPERS was a partner with a private restructuring fund for Asia run by New York financier Wilbur Ross that played a key role in the suppression of a strike in South Korea. The strike led to the imprisonment of forty Korean trade unionists.
Investors in Carlyle's equity funds include state pension plans in Delaware, Florida, Louisiana, Michigan, New York and Texas, as well as in Los Angeles County. Others are the Ohio Workers Compensation Bureau and Union Labor Life Insurance, a union-run insurance company. According to industry newsletters, union pension funds with significant holdings in private equity markets include SEIU, the USWA, the Hotel and Restaurant Employees, the United Food and Commercial Workers, and the Union of Needletrades, Industrial and Textile Employees.
He says that what he said about the Jews
(They own and thus manipulate the news)
Is not, of course, reflective of his views.
So what part of the news did those Jews lose?
Langston Hughes on the real Harlem renaissance.
"I went down to Tommy Thompson's house," the crowd sang.
If you want to read everything The Nation has ever published on the women's rights movement and feminism, click here for information on how to acquire individual access to the Archive--an electronic database of every Nation article since 1865.
Nation pay rates, you may have heard from brother Trillin, are not those of Condé Nast. Every once in a while I don't mind this, because the job just kind of does itself. Take this week: I couldn't decide which of the many McCarthyite wing-nuts currently accusing ex-lovers and comrades of being liars, gay-bashers, anti-Semites and spouse-abusers merited an entire column. None of them did. But hey, I got a column out of just trying to figure it out.
(1) Weekly Standard writer David Frum took a job as a supposedly anonymous White House speechwriter. But his wife, novelist Danielle Crittenden (yes, she's the one who tells women to use their husband's name professionally but doesn't bother with that silliness herself), could not bear to see hubby's genius go unrecognized and sent out a mass e-mail claiming his authorship for Bush's nonsensical "axis of evil" formulation. Tim Noah, Slate's Cindy Adams, owns this baby. He published the offending e-mail. ("It's not often a phrase one writes gains national notice...so I hope you'll indulge my wifely pride in seeing this one repeated in headlines everywhere!!") He quoted her stepdaddy's Canadian newspaper telling the same tale. And he cited other possible authors. Later Frum, thinking twice, decided Bush had thunk it up all by his lonesome. (When you think about it, it's just foolish enough...) Anyway, speechwriters are not supposed to take credit for anything, even dumb ideas, and now Davy's unemployed. Bob Novak blames wifey's e-mail. Davy says Bobby's a liar and he was quitting anyway. Now, "Nofacts" is a well-known McCarthyite fabulist, but Mr. Crittenden does not improve his own credibility much by claiming that W. has "proven himself to be one of the great presidents of American history." So who's really writing fiction here? You be the judge.
(2) Wall Street Journal editorial writer John Fund has landed on Page Six in a bizarre tale that is almost too weird to write down. It seems that a woman with whom Fund had an affair twenty years ago named Melinda Pillsbury Foster sent her daughter, Morgan, to look up Fund when she came to town. One thing led to another and the results appear to have been a live-in relationship and an abortion. This is strange enough for a Wall Street Journal editorial writer who, although very much a gentleman in person, penned some of the most vicious and irresponsible material about Clinton and the Democrats outside the columns of this magazine. (Fund is also a ghostwriter for Rush Limbaugh and, irony of ironies, is widely believed to be the source of Matt Drudge's libelous claim that Sidney Blumenthal is a wife-beater.) Anyway, things did not exactly work out. Mother and daughter decided to take their revenge by uploading onto the web a taped telephone call in which John attempts to reconcile his support for Morgan's abortion with his "family values" politics. They then informed the media that John and Morgan had decided to wed after all. This turned out to be false, but the next thing you know, Fund is gone from the Journal's editorial page, arrested in Manhattan for battery of Melinda and under a restraining order. (Join me for a moment in imagining what the Wall Street Journal/Washington Times/New York Post/Fox News/Rush Limbaugh/American Spectator scandal machine would do with this crazy story if it were about, say, Frank Rich.) In the meantime, I am inclined to accept Fund's denials absent contrary evidence. Politically the man may be a menace, but his accusers have already proven themselves to be--to coin a phrase--"a little bit nutty." You pays your money and you picks your liar.
(3) Ever wonder what it must have felt like to be a right-winger and lay your hands on Whittaker Chambers's Witness for the first time? Run, don't walk to your corner bookstore. David Brock's Blinded by the Right: The Conscience of an Ex-Conservative is a liberal's Stairway to Heaven. Absolutely everything we thought about these bozos in the vast right-wing conspiracy turns out to be true and then some. Meet Anti-Semite Ann Coulter, Homophobe Johnny Podhoretz, Lovesick Matt Drudge, etc. Like Chambers, Brock is a confessed liar, an ex-ideologue and a formerly closeted homosexual who conspired with people and publications specializing in McCarthyite slander of innocent liberals, minorities and gays. For Chambers fans, anyway, that should do it.
(4) Washington Post writer Michael Kelly says of his column: "It's not that important to me.... It's a busman's holiday." Here I am pretty confident Kelly is telling the truth. Complaining of a negative reference to the State of the Union in a New York Times Op-Ed by Mark Lilla, Kelly, who edits both National Journal and The Atlantic Monthly, recently joked that the author was "a professor of something called social thought (presumably, there are professors of antisocial thought too, but no one knows who they are since they won't answer the phone)." LOL. Apparently nobody at the Post takes Kelly's column seriously either. Had Kelly spent a few minutes on research, he might have discovered that the University of Chicago's Committee on Social Thought has been the home of such nobodies as Friedrich Hayek, Hannah Arendt, Harold Rosenberg, Saul Bellow and Allan Bloom. Today the novelist J.M. Coetzee, the poet Mark Strand and George Bush's favorite bioethicist, Leon Kass, all hang their homburgs there alongside that of Lilla, who is also the ex-editor of the neoconservative Public Interest. Since none of the above are pacifists--or as Kelly would put it, "evil...objectively pro-terrorist.... Liars. Frauds. Hypocrites"--perhaps one might even rate a contribution to the once-great Atlantic.
(5) Speaking of verbal diarrhea, Scaife-funded David Horowitz has just published another of his entertainingly insane pamphlets; this one joining fellow McCarthyite Andrew Sullivan in blaming the "Fifth Column" left for September 11. Last time I mentioned Horowitz, he responded, "Eric Alterman apparently thinks lying is a form of mooning." I don't know what that means, but it does confirm my long-held belief that one Panther-loving Commie-turned-reactionary-racebaiter sure does spend a lot of time with his head up his ass.
The targeting of "terrorist" groups harks back to earlier repression of dissent.
Sen. Ted Kennedy has passed away at the age of 77. This 2002 Nation profile by the late Jack Newfield captures the essence of what this legend meant to the progressive movement.
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