The Best Democracy Money Can Buy Greg Palast is an internationally recognized expert on the control of corporate power working with labor unions and consumer groups in the USA, South America and Europe. In America, among his more noted cases, he directed government investigations and prosecution of racketeering by nuclear plant builders and, for the Chugach Natives of Alaska, probed charges of fraud by oil companies in the grounding of the Exxon Valdez. Five years ago, Palast turned his investigative skills to journalism. His 1998 undercover exposé of corruption at the heart of Tony Blair’s cabinet, “Lobbygate,” earned him the distinction of being the first journalist in memory berated personally on the floor of Parliament by a prime minister—as well as an award for Story of the Year. His column for Britain’s Observer newspaper, “Inside Corporate America,” and other writings, have won him the Financial Times David Thomas Prize (1997) and nomination as Business journalist of the Year (1999). In America, Palast broke the story of how Katherine Harris and Jeb Bush removed thousands of Black and Democratic voters from registration roles prior to the presidential election. The series of revelations appeared in The Nation, the Washington Post, Harper’s, the Guardian—and in Salon.com which named the exposé Politics Story of the Year. Palast’s investigative reports can also be seen on BBC Television—“Newsnight’s own Sam Spade.” Publication of Democracy and Regulation, Palast’s lectures at Cambridge University and the University of Sao Paulo, coauthored by Theo MacGregor and Jerrold Oppenheim, is forthcoming. He divides his time between London and New York. Some comments on Greg Palast’s writings: “The journalist I admire most. His amazing work puts all the rest of us journalists to shame. I’m an avid reader of everything Palast writes—can never get enough of it.” George Monblot, Guardian “Hearsay and misinformation.” Official spokesman, International Monetary Fund (IMF) “Great writing on the Evil Empire of the IMF.” Jude Warmiski, former editorial page editor, Wall Street Journal “The world’s greatest investigative reporter you’ve never heard of.” Cleveland Free Times “To Americans who cannot read his stories printed in Britain’s Observer, he is America’s journalist hero of the Internet.” Alan Colmes, Fox Television “Intrepid investigative reporter who first broke the news that tens of thousands of likely Democratic voters were disenfranchised in Florida before the 2000 election.” US journalism Hall of Fame “The Most Evil Man in the World.” Private Eye “Amazing reporting. I can’t wait for the next installments.” David Ruppe, ABC News “The Liar! Sleaze Reporter!” Mirror “[Palast’s reports) have not one shred of evidence!” Prime Minister Tony Blair “Tony Blair’s nightmare.” Harper’s & Queen “George Bush’s nightmare.” Laura Flanders, Working for Change Radio “The information is a hand grenade.” John Pilger, New Statesman “Rubbish... rubbish.” Official spokesman, World Trade Organization (WTO) “Courageous writing (on the WTO)—when no one else will do it.” Maude Barlowe, Council of Canadians “The type of investigative reporter you don’t see anymore—a cross between Sam Spade and Sherlock Holmes.” Jim Hightower “All power to Palast’s pen!” Will Hutton, author, The State We’re In “Should be read all over America.” Andrew Tobias, author, The Invisible Bankers “Greg Palast is investigative journalism at its best. No one has exposed more truth about the Bush Cartel and lived to tell the story.” Baltimore Chronicle “Your Bullshit axe to grind with Bush is just another example of how far a punk ass loser will go to slander our president.” (Signed) “A Real American.” THE BEST DEMOCRACY MONEY CAN BUY An Investigative Reporter Exposes the Truth about Globalization, Corporate Cons and High Finance Fraudsters Greg Palast First published 2002 by Pluto Press 345 Archway Road, London N6 5AA and 22883 Quicksilver Drive, Sterling, VA 20166- 2012, USA www.plutobooks.com Copyright © Greg Palast 2002 The right of Greg Palast to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library ISBN 0 7453 1846 0 hardback Library of Congress Cataloging in Publication Data Palast, Greg. The best democracy money can buy: an investigative reporter exposes the truth about globalization, corporate cons, and high finance fraudsters / Greg Palast. p. cm. ISBN 0-7453-1846-0 1. Political corruption. 2. Corporations-Corrupt practices. 1. Title. JF1081 P35 2002 364.1’323-dc2l 2001008116 We cannot trust some people who are non-conformists. Ray Kroc, chairman, McDonald’s Corp, deceased The thing about the Golden Straitjacket is, the tighter you wear it, the more gold it produces. Thomas Friedman on globalization I don’t have to be nice to the spirit of the Anti-Christ. Dr (“Reverend”) Pat Robertson Contents Forewords by Joe Conason and Will Hutton ............................................................................ ix Who Gives a Shit? An Introduction.............................................................................................1 1 Jim Crow in Cyberspace: The Unreported Story of How They Fixed the Vote in Florida.6 In the days following the presidential election, there were so many stories of African- Americans erased from voter rolls, you might think they were targeted by some kind of racial computer program. They were. 2 Sell the Lexus, Burn the Olive Tree: Globalization and its Discontents..............................44 A cache of secret documents from inside the IMF, World Bank and World Trade Organization explains the inner workings of the iron triangle of globalization. 3 Small Towns, Small Minds.......................................................................................................76 I live in one of those lovely little rural villages in America that still preserve good old American small town virtues. So why has our local newspaper written two editorials requesting I get the hell out? 4 Pat Robertson, General Pinochet, Pepsi-Cola and the Anti-Christ: Special Investigative Reports..............................................................................................................................84 Award-winning investigative reports. 5 Inside Corporate America......................................................................................................115 Fifteen thousand stockholders believe they hear Sam Walton speak months after he died—and other strange tales from Planet Dollar. 6 The Best Democracy Money Can Buy ..................................................................................140 Who owns America? How much did it cost? Cash, check or credit card? The Bushes, the Clintons and the billionaires who love them. 7 Cash-for-Access—“Lobbygate”: the Real Story of Blair and the Sale of Britain ............152 My bald head took up the entire front page of the Mirror under the headline, ‘THE LIAR!’ Did I upset someone? When Tony Blair came to power, I set up an undercover sting exposing the kasbah influence in 10 Downing Street. 8 Kissing the Whip.....................................................................................................................182 When the TV infotainment hypnosis wears off, when “Have a nice day” is an insufficient answer to getting screwed by the powers that be, Americans can surprise themselves, rise up, and say, “No thanks, we won’t kiss the whip that beats us.” Thoughts in exile. 9 Victory in the Pacific—A Conclusion ...................................................................................197 Index ..........................................................................................................................................201 Forewords Joe Conason and Will Hutton When I first knew Greg Palast years ago in New York, he was an extraordinarily determined and talented investigator, toiling away for a consortium of labor unions. Among the frustrations of his job was the necessity of explaining complex financial issues to doltish journalists. At some point since then, very much to the public benefit, he decided to pick up the pen himself and take on the world. This fascinating book is really a world tour with Palast as guide. Those who join him will learn the previously unrevealed secrets of globalization, a term which really is a new “brand name” for very old forms of international investment and exploitation. Joining the techniques and values of investigative journalism with his background in economics, Palast scrutinizes the global marketplace in ways that enlighten readers and frighten corporate chieftains. It is a salutary occupation that brings a touch of moral hygiene to institutions that badly need cleaning. Palast’s bracing hosedown is a rare experience for the denizens of the corporate sector, who are accustomed to “business reporting” focused on stock prices and balance sheets. It is ironic that we in the USA must turn to Britain for this American’s unfettered reporting about our businesses and institutions—including some of the most important stories about last year’s disputed presidential election. Readers who think they can no longer be shocked by that assault on democracy are... well, they’re in for a shock. Palast is a tough and salty character, but one wishes he weren’t quite so unique. A few more reporters chasing these stories with his passion