Confessions of an Economic Hit Man

In fact, today the existence of such a currency is no longer hypothetical; the euro entered the international financial scene on January 1, 2002 and is growing in prestige and power with every passing month. The euro offers an unusual opportunity for OPEC, if it chooses to retaliate for the Iraq invasion, or if for any other reason it decides to flex its muscles against the United States. A decision by OPEC to substitute the euro for the dollar as its standard currency would shake the empire to its very foundations. If that were to happen, and if one or two major creditors were to demand that we repay our debts in euros, the impact would be enormous.

I had these things on my mind on the morning of Good Friday, April 18, 2003, as I walked the short distance from my house to the converted garage that serves as my office, sat down at the desk, turned on the computer, and as usual, went to the New York Times Web site. The headline leaped out at me; it immediately transported me from my thoughts about the new realities of international finance, the national debt, and euros back to that of my old profession: “U.S. Gives Bechtel a Major Contract in Rebuilding Iraq.”

The article stated, “The Bush administration awarded the Bechtel Group of San Francisco the first major contract today in a vast reconstruction plan for Iraq.” Farther down the page, the authors informed readers that “The Iraqis will then work with the World Bank and the International Monetary Fund, institutions in which the United States enjoys wide influence, to reshape the country.”²

Wide influence! There was an understatement.

I linked to another Times article, “Company Has Ties in Washington, and to Iraq.” I skipped through the first several paragraphs, which repeated much of the information from the previous article, and came to:

Bechtel has longstanding ties to the national security establishment… One director is George P. Shultz, who was secretary of state under President Ronald Reagan. Before joining the Reagan administration, Mr. Shultz, who also serves as a senior counselor to Bechtel, was the company’s president, working alongside Caspar W. Weinberger, who served as an executive at the San Francisco-based company before his appointment as defense secretary. This year, President Bush appointed Bechtel’s chief executive, Riley P. Bechtel, to serve on the President’s Export Council.³

Here in these articles was the story of modern history, the drive to global empire, in a nutshell. What was going on in Iraq and described in the morning press was the result of the work Claudine had trained me to do some thirty-five years before, and of the work of other men and women who shared a lust for self-aggrandizement not unlike the one I had known. It marked the current point of the corporatocracy’s progress along the road to bringing every person in the world under its influence.

These articles were about the 2003 invasion of Iraq and about the contracts now being signed, both to rebuild that country from the wreckage created by our military and to build anew in the mold of the modern, westernized model. Yet, without saying so, the news of April 18, 2003, also harked back to the early 1970s and the Saudi Arabian Money-laundering Affair. SAMA and the contracts flowing out of it had established new and irrevocable precedents that allowed—indeed mandated—U.S. engineering and construction companies and the petroleum industry to co-opt the development of a desert kingdom. In the same mighty blow, SAMA established new rules for the global management of petroleum, redefined geopolitics, and forged with the Saudi royal family an alliance that would ensure their hegemony as well as their commitment to playing by our rules.

As I read those articles, I could not help but wonder how many other people knew, as I did, that Saddam would still be in charge if he had played the game as the Saudis had. He would have his missiles and chemical plants; we would have built them for him, and our people would be in charge of upgrading and servicing them. It would be a very sweet deal—even as Saudi Arabia had been.

Until now, the mainstream media had been careful not to publicize this story. But today, here it was. True, it was a mere inkling; the articles were only the meekest ghosts of a summary, yet the story seemed to be emerging. Wondering if the New York Times was taking a maverick stance, I visited the CNN Web site and read, “Bechtel Wins Iraq Contract.” The CNN story was very similar to the one in the Times, except it added,

Several other companies have at various times been reported as possible competitors for the job, either as primary bidders or as parts of teams, including the Kellogg Brown & Root (KBR) unit of Halliburton Co.—of which Vice President Dick Cheney once was CEO… [Already] Halliburton has won a contract, which could be worth $7 billion and could last up to two years, to make emergency repairs to Iraq’s oil infrastructure.⁴