American Dynasty Aristocracy, Fortune, and the Politics of Deceit in the House of Bush1

By Kevin Phillips, summarized by Walter Antoniotti of 21st Century Learning Products.  Print in Landscape Mode

This summary is part of The War section of our Current Events Internet Library Current Reading  The George H.W. Bush Revival  8/7/14

Part I The Merger of Two Great Families    Part 2 The life and Times of George the First

Part 3 The Revival of George II     Bush 3 and 4 Unless We Close the Door
 

Part I The Merger of Two Great Families

Time

Subject2

End of 19th and
early 20th Century

WW1

Between Wars

Family Samuel Bush-1863-1948
Bush 1's grandfather
Became well-off running Buckeye Steel 1908-1927. Took over for Frank Rockefeller  21 Did not profit from military spending after the war.
Prescott Bush 1895-1972
Bush 1's father
  First job was in St. Louis for fellow Yale Skull and Bones alumnus Wallace Simmons. Returned to Ohio, married Dorothy Walker, G.H. Walkers daughter, and managed a small rubber company. He eventually ended up in New York working for U.S. Rubber, a Harriman company. Two years later, at 31, he was made Vice President of W.A. Harriman Company.
George Herbert Walker,
1875-1953
 
Prescott's father-in - law
Became wealthy owning G.H..Walker and Co, an investment company, did work for E.H. Harriman, owner of Union Pacific and did work
for J.P. Morgan  21-22
Ran recently formed W.A. Harriman Company  set up by Rockefeller-headed National City Bank and Morgan connected Guaranty Trust  23
  George Herbert Walker Jr.
1906-
George 1's favorite uncle. 202
  Walker Jr. was director of Cuban-Dominican sugar companies which merged with West Indies Sugar in 1942.  203
Personal Kennebunkport  home built by  Walkers in 1904  23   Both Walker SR and P. Bush develop a father son relationship though some feel the Walkers financially dominated the Bush family. 24-25
Oil 1898 Germans clandestine oil exploration operation discovered  in what is now Iraq.  249


S. Bush SR  worked closely with Rockefeller's Ohio based Standard Oil. 151

Berlin to Baghdad railroad completed.  249
From Wikipedia3  Begun in 1903, completion was delayed for years by diplomatic obstructions from  Russia, France, and Britain.
Sykes-Picot Agreement of 1916
gave postwar sphere of  influence to Russia over the Bosporus and part of Anatolia, France got Lebanon, Syria, and oil rich Mosul, and Britain got Arabia, Palestine, the Baghdad area. 250
US has 2/3 of the worlds oil production
, much going for the war.  250

End of Hapsburg Empire caused European nations to seek control of Mid-East Oil. Russia lost her share of the Middle East pie because of revolution.  250-251
Walker SR
served as director of Petroleum Bond and Share, was involved in with Harriman's 1922 Russian oil investment company, the major developer on Baku oil field. Baku was close to modern-day Iraq so this is the time the
Bush family pursuit of the region's oil began.  251
Harriman purchased Dresser Manufacturing, an oil service company which  later became Dresser Industries.  Harriman's managing partner Prescott Bush rigorously supervised Yale classmate Neil Mallon, installed as Dresser's president. 152
Business 

Walker SR owned and sold Missouri based Laclede Gas Company. 151
Book entitled Merchants of Death
published in 1934 blame munitions makers for WWI. A senate special committee went after  FDR's political enemies like the Du Pont's munitions empire. FDR chilled when the committee began looking to embarrass government officials.  260
W.A. Harriman and Co. merged and became Brown Brothers Harriman (BBH).  24 
Wall Streeters A. Harriman, G. Walker, Clarence Dillon and John Foster Dulles, and Alan Dulles were very involved with $2 billion controversial investments made to German and Russia industries. They held these investments well into WW2. 37, 186, 192
Politics Alas for Berlin, the Turco-German "holy war" to stir a 1914-15 Muslim  revolution  in the Russian Caucasus against British authority in Persia and India accomplished  little. Averill Harriman, keeping his financial stake in BBH and became FDR's emissary to Churchill and Lend-Lease administrator. 
Hitler
became chancellor, insures an oil supply from Romania, and began a hugely successful synthetic fuels program
Military Samuel Bush, an Ohio Democrat, served in and became director of  the War Industrial Board(WIB) in Washington. 182 While S. Bush and G.H. Walker profited from WWI, neither was mentioned in the popular literature in the so-called Merchant of Death hearings begun in 1934.  179
Intelligence/
CIA
Prescott Bush served in military intelligence, which was run by two Yale Anglophiles, as liaising to Britain. 198 Skull and Bones club was one of the principal recruiting sources for the Office of Coordination which eventually became the CIA. 202
Yale  Skull and Bones Fraternity members include Samuel and Prescott Bush and  George Herbert Walker Jr. 27 Averill Harriman,  E. Rollins Harriman, R. Lovett, A. Gates and others at Brown Brothers Harriman were Skull and Bones alum.  35
 

 

WW2

 

Following WWII

Family   Prescott Bush, was elected to the U.S. Senate from Conn. in 1952, had an  10-year  undistinguished career though he did serve on the Armed Services Committee and golfed frequently with President Eisenhower and national security advisor Gordon Grey.  28, 196
      !959 Walker Jr. gave up directorship of  West Indies Sugar as Castro was about to nationalize and Helps
West Indies Sugar value dropped from about $53 million to almost nothing. Walker-Bush holding were not known. 205
Oil !942 Germany's drives were stopped 150 miles from Cairo and 300 miles from Soviet Baku oil fields. 189
1943
FDR declared defense of Saudi Arabia is vital to defense of the United States. 152
Japan got 80% of her oil from US and 10% from the Dutch East Indies. Seizing the most plausible substitute oil from Indochina, Borneo, the Dutch East Indies would have resulted in war with the United States. 252
Dresser provided government with a number of highly specialized and highly classified products. 153
US in 1940-45
produced about 65% of a doubled end of war world output.  254
Geologists
discovered Middle East capacity far surpasses that of the US. 254
Dresser stepped up the globalization of its oil business. 254
Business The Neutrality Acts of 1935, 36, and 37 stopped American business from profiting from the European arms buildup.  186
Investigations under the 1941 Trading with the Enemy Act resulted in  assets being seized, some belonged to Harriman and Walker companies. 38
 
Politics
FDR
declared Saudi Arabia vital to the interest of the United States. 152
The political careers of Averill Harriman, John Foster Dulles,  Prescott Bush and his descendants were not affected by financial activities during WW2.  39
Military Brown Brothers Harriman alumnus R. Lovett was assistant secretary of War and A. Gates was assistant secretary of navy for air. 34  
CIA 1952 Allan Dulles was director of the CIA. 36 Allen Dulles was forced out of the CIA by the 1961 Bay of Pigs invasion and later had dinner with his soon to be named replacement John MaCone and Prescott Bush  197
Yale Secretary of War Stimson was Yale Skull and Bones. 38  
1. This is page source from the 2004 paperback.
2 Table, column and row titles and name abbreviations are by Walter Antoniotti
3. Walter's addition
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Part 2 The life and Times of George the First

               Time 
Subject
After WW 2 and the 50's The 60's and 70's Reagan Years 1980-88 President George the Firsts
1988-92
Family George 1 went to Andover Academy, Yale,  joined Skull and Bones, graduated in 1948, worked in Ohio as treasurer for  subsidiaries of Dresser Industries where his father was a long time board member.  41-43
 

 

 
Unsuccessful U.S. Senate run,
1970  45
Undistinguished UN ambassador, 1971-72   30
Undistinguished Republican Party chairman, 1973-74   31
Chief of US China mission 1974-75   31
Director of CIA  December 1975-76   31
Executive chairman of Dallas's First Bancshares and its London merchant banking Subsidiary 1977-78.  279
George 1 was Vice President.

 

 

 

 

Oil  George 1 left Dresser in 1951 and starts Zapata with $50,000 from dad and  $850,000 from friends of George Herbert Walker Jr. He was principally involved with the investment side of the business.  43,125

Zapata Offshore is formed, operates close to Cuba, and some feel it was CIA supported.

Zapata became Pennzoil  and is later tied to Watergate money.  205, 207
After the 1973 Arab-Israel Wa
r , the Arabs quadruple the price of oil and cut off deliveries to the US
Another Oil crisis hits in 1970
 

 

 

Ken Lay of Enron fame became involved with George 1 politically and in the oil business. 155
By 1980 US produced under 20%
of the worlds oil and imports 30% of its needs. 254

 

 

OPEC gave Enron a $56 million loan.
George 1 named Lay to organize G-7 Economic Summit in Huston and later to the President's Economic Council.  157

 

 

 

Military   U.S. foreign Military arms sale cross the billion dollar mark in 1968 and really jumped after the 1970 OPEC crisis when Washington decided arms sales would be a good way to get some of the dollars back that the Middle East oil producers.  263
Zapata
, which provided commercial supplies for the Bay of Pigs invasion, was a CIA part-time purchasing front. 204
Dresser formed Permargo, a Mexican company  with CIA ties. 204

As VP, George 1
played a key role in U.S. supplying arms to Iraq.  264
Secretary of Defense Cheney hired Dallas-based Halliburton's Brown and Roots Services to study how private companies can provide logistics for U.S. military forces around the word. That same year, said company, now Kellogg, Brown and Root, received the first big five-year logistics government support contract. 171
Since 1994, Kellogg, Brown and Root and Virginia-based management and technology consulting Booz, Allen and Hamilton received 75% of the 3,000 government support contracts worth $300 billion.    172
CIA Arthur Burr Darling, a known intelligence community agent and  George 1's history teacher at Andover, compiled a history of the CIA.  200
Democratically elected Iranian fell because of a 1953 CIA- British intelligence orchestrated coup d'état necessitated by the nationalization of Iranian oil and closed the very profitable British owned Anglo-Iranian Oil Company. 3
1976 George 1 is director of CIA. 31 
Bush promoted many covert operations practitioners, protected agents from indictment by the President Ford Justice Department, and protected former CIA Director Richard Helms who was let off with a fine and suspended sentence for lying to Congress.  280
President Carter abruptly fires 800 of 4,000 CIA covert operations, many had  been recently vulnerable to indictment. 
Bill Casey, with strong  ties to the CIA,  joined Reagan as his campaign manager and brings along dozens of fired covert operatives. 282
Failed attempts to rescue Iran Hostages  was run by CIA operatives who in the mid 1980's became prominent Bush operative. 285
 
Numerous sources clam George I and his CIA friends  delayed the Iran Hostage release until after the 1980 election.   285-290
Political Prescott Bush from Conn. backed the sovereignty  over the submerged offshore oil deposits of Gulf states.  
Prescott Bush used influence congress to stop investigating the CIA  31
Secretary of State Henry Kissinger
makes it clear in 1976 that the US will go to war to prevent any strangulation of U.S. and world oil supplies, a pledge restated by the 1979 Cater Doctrine. 254
Ronald Reagan reluctantly chooses George  as running mate. 32
249 Team 100 members group each donated $100,000 or more to have access to George 1.
Sun Belt Presidents,
stretching from California through Texas to Florida. Nixon and Reagan were from California, the George 1&2 from Texas. George 3 lives in Florida3 112
Energy act of 1992 deregulated electricity and requires utilities carry privately marketed electricity like Enron's. 157
Commodities Future
Trading Commission( CFTC), chaired by chaired by Wendy Gramm, wife of Texas Republican Senator Phil, grants Enron's request to exclude energy contract and interest rate swaps from CFTC oversight inn on January 14, 1993. 158
Ken Lay is named cochairman of the Bush I reelection committee and chairman of Republican National Convention. 157-158
Personal George 1displayed preppie, adolescent personality (30,31), and a striking ability to remember names.  44
George I
lived in upscale side of Midland, Texas, kind of a southern Cambridge where many Ivy League graduates lived.  42
 

 

George 1worked for the CIA in 1960 or 1961 according to The Nation magazine 205

George 1 announced he was running for president in 1978. People were taken aback and asked President of what ?  32 
George 1 made the big leap from CIA director to VP and a Dynasty bringing a new and unfamiliar mind-set to the elective executive office had begun. 207 Wendy Gramm resigned a week after CFTC ruling and a month later was named to Enron's board of directors. She received an estimated $912,000 to  $1,853,000 compensation package between 1993 and 2001.  158
Dick Chaney took over Halliburton in  1995 and the company's political contributions, lobbying outlays, government contracts, Export-Import Bank loans mounted almost as fast as Huston based Enron.  During Cheney's five-year reign, federal contacts were  $2.3 billion compared to $1.2 billion for the previous five years. 172 
Time  After WW 2 The 70's Reagan Years President George 1
3 Added by Walter

Part 3 The Revival of George II

Time 

The 70's

The 80's

The 1990's

2000 -

Family George 2 worked in father's unsuccessful senate bid in 1970-73, traveled for a business run by former Skull and Bonesman Richard Gow, helped in losing effort for a Alabama U.S. Senate seat, and worked for  Professionals United for Leadership League, which his dad chaired.
Graduated Harvard Business School in 1975 and moved to Midland, Texas, soon to be America's richest town.  45
George 1 was Vice President and then  President of the United States George 2 was Governor of Texas

Bush 3 became Governor of Florida3

George 2 became President of the United States
Oil/
Energy
1977- Starts Arbusto Energy, Spanish for Bush, got married and didn't drill till 1979. Didn't go well despite $565,000 from Uncle Jonathan's investors.  46 Dad election win made money plentiful, but another 4.7 million from family and friends didn't help.  Arbusto referred to as Ar-Bust-o by investors took nominal losses of $3 million with George 2 ion salary. 46

1986 Harken Energy
of Texas bought Arbusto and George 2 receives $500,000 in stock, a Harken directorship, and consecutive annual consulting salaries of $80,000 and $120,000. 47
Over a Decade government agencies gave Enron $7.2 billion in financing. 160

Enron President Kinder
 served on a committee that recommended Governor Bush ease taxes by $3 billion dollars on the capital intensive industries was accepted but the law failed. The tax  burden was not passed to services and professionals. 160
California opened it energy markets and 24 states follow by end of 2000. 161
2001 VP Chaney's energy task force predicted a 12% decline in U.S. oil production by 2020 which would compel the U.S. to import two-thirds of its needs.  255
Enron had sales
$31 billion in 1998 and 139 billion in 2001.  164
California faced serious blackouts as prices spike to 50 times normal. 167
Enron executive began quietly unloading Enron stock which hit $80 per share right after the Bush II's inaugural and was 50 by June. Stock fell to 20 in October as administration efforts like refusing to cap energy prices in California and pressure on India to pay Enron failed. 168
The Enron scandal resulted in a late 2001 bankruptcy declaration. 169
Politics George II does well but loses a 1978 bid for U.S. House of Representatives. 45-46 Harken Energy had links to Saudi money, CIA connected  Filipinos, the Harvard Endowments, the emir of Bahrain, and the shadowy Bank of Credit and Commerce International. 47 Enron's President and CO Richard Kinder became George 2's chief Huston fund raiser.  159
Enron has $5.3 million in federal campaign contributions, 40% more then second place.  161
In December of 2000, Senator Gramm spearheaded a successful effort for a new round of energy futures deregulation.  165
Yale George II graduating from Andover Academy went to Yale, joined Skull and Bones and graduated.. 44      
Personal George 2 looked and acted like George 1. Like his father he played baseball at Yale (though not as well),  bent the rules to become a fighter pilot (though his service record is  questioned), and generally  followed in his father's footsteps. Both mix up sentences having kind of a verbal dyslexia which may run in the family.  43-44. With Harken money and little to do other than attend meeting, George II decides to help dad run for president.

George II gave up Wild Turkey bourbon and became born again sometime around 1986, right after his 40th birthday and the year oil went below $9 a barrel.  48

   
Military An Islamic Dodge City has been created in the Middle East by arms selling nations mostly from the West3. 265  1984-88 arms sales swollen by the Iraqi-Iranian war to Middle Eastern countries accounted for 48% of the third world total. 264   A Christian- Muslim civil war gutted Beirut. It killed forty-sixty thousand people which was more than the four Arab-Israeli wars combined. 265  $42 billion in arms sales from 1990-97 were made to the Gulf Cooperation Council countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates. 265  Why aren't they helping the US fight? 3 War in Afghanistan killed 1.5 million people and caused another 5 million to flee as refugees to India and Pakistan.
Life in the Middle East Corruption increased because of oil money, covert operations, and commissions from arms deals. Ballooning Drug Business for Afghanistan and Pakistan developed. Rise of Islamic Fundamentalism occurred after the U.S. and Britan foster a cope to the democratically elected government and put the Shaw of Iran in charge. Success of Islamic Revolution caused the overthrow of the shah of Iran, ascent of the  Taliban in Afghanistan, and Saudi support for Al Qaeda. Pakistan Frontier Religious Party was successful.  Islamic Victories occurred in Nearby Turkey  266 Much of this happened because Secretary of Defense Donald Rumsfeld failed to follow the long believed military practices when managing an occupied country. See The War  On Terror: Who Are We Fighting.

Bush 3 and 4 Unless We Close the Door

Time 

The 80's

The 90's 2000's
Neil Bush Silverado S&L made him a director of in 1985 after Neil conjoined them with his 1983 startup JNB Exploration. 131
During Jeb's tenure, Silverado loaned over $200 million dollars to Neil's partners in JNB, most of which was defaulted upon. Neil, who did not tell Silverado about his close business dealings with  the partners. Jeb received $100,000 loan from one partner with no obligation for repayment . Another partner's bank gave JNB a $1.5 million line of credit from which JNB paid the then vice president's son $550,000 between 1983 and 1988.  131
Set Apex Energy with a $3, 000 investment plus a $2.3 million dollar loan from the SBA. It went belly- up with few assets to pay back SBA.  133
Forget Bush 4
3
Neil, acting as an oil lobbyist, tags along with his father  on a trip to Kuwait.139 In 2002, now a educational software entrepreneur, made his forth trip to the Middle East since his brother won the presidency. He met with the Saudi royal family and software firms in Dubai 309
Jeb Bush Jeb arrived in Miami in 1980 and was soon involved with GOP politics, Cuban immigrants, and real estate. Business contacts were well-heeled Nicaraguan contras or CIA-connected Cubans. 130
Some feel Jeb received at least $300,000 for presidential influence in relation to a $74 million U.S. Export Import loan to a business partner. 132
Two principal business partners were indicted in the late 1980's, one pleaded guilty and the other fled to Venezuela. 134
  Editors Notes: The former governor of Florida, 1999 - 2007 is considered by many, a Republican  favorite for the presidential election of 2012.
Bush Law Jeb Bush was not indicted for his the Silverado money maker, and there were no criminal charges against him. However a civil action was brought against him and the other Silverado directors by the Federal Deposit Insurance Corporation; it was eventually settled out of court. Bush was fined $50,000 as a consequence of his actions and he was restricted from undertaking future banking activity 3. Wikipedia

SEC internal documentation prepared in 1991 suggested George II had violated federal security law at least four times in late 80's and early 90's. 134
Harken lawyers
advised George II of the insider trading violations a week before the his mid 90's sale of $848,000 of their stock.  134

 

 

 

 

 

In 2002, Bush signed a consulting contract that paid $2 million dollars in stock over five years to work for Grace Semiconductor Manufacturing Corp., a firm backed by Jiang Mianheng, the son of former Chinese President Jiang Zemin, plus $10,000 for every board meeting he attends.[17]

Bush serves as co-chairman of a company called Crest Investment. Crest pays him $60,000 a year to provide miscellaneous consulting services.[16][18]

Bush frequently travels to the Middle East, Europe and Asia to negotiate deals and raise capital for various businesses. According to court filings from his divorce, in 2000 he was paid $1.3 million for such work. This includes $642,500 as a commission for introducing an Asian investor to the owners of an American high-tech company.[19]

http://en.wikipedia.org/wiki/Neil_Bush