Posts Tagged ‘graft’
“Everything is destroyed by its own particular vice: the destructive power resides within”*…
Government graft in the U. S. has a long (and unbroken) history; but there have been especially corrupt periods, for instance in the Jacksonian era and the Gilded Age… and again today.
Profiteering and insider trading, “pay-to-play”/influence peddling, foreign emoluments, conflicts of interest, regulatory and policy favors, purchased pardons (and commutations)– we’ve got it all, and at epic levels.
The estimable Cory Doctorow uses a telling comparison to drill down on one of the dominant strands: Trump’s (ironic) campaign to fight (what he identifies as) corruption…
… It’s a story about boss-politics anti-corruption, in which anti-corruption is pursued to corrupt ends.
From 2012-2015, Xi Jinping celebrated his second term as the leader of China with a mass purge undertaken in the name of anti-corruption. Officials from every level of Chinese politics were fired, and many were imprisoned. This allowed Xi to consolidate his control over the CCP, which culminated in a rule-change that eliminated term-limits, paving the way for Xi to continue to rule China for so long as he breathes and wills to power.
Xi’s purge exclusively targeted officials in his rivals’ power-base, kneecapping anyone who might have blocked his power-grab. But just because Xi targeted his rivals’ princelings and foot-soldiers, it doesn’t mean that Xi was targeting the innocent. A 2018 paper by an economist (Peter Lorentzen, USF) and a political scientist (Xi Lu, NUS) concluded that Xi’s purge really did target corrupt officials.
The authors reached this conclusion by referencing the data published in the resulting corruption trials, which showed that these officials accepted and offered bribes and feathered their allies’ nests at public expense.
In other words, Xi didn’t cheat by framing innocent officials for crimes they didn’t commit. The way Xi cheated was by exclusively targeting his rivals’ allies. Lorentzen and Lu’s paper make it clear that Xi could easily have prosecuted many corrupt officials in his own power base, but he left them unmolested.
This is corrupt anti-corruption. In an environment in which everyone in power is crooked, you can exclusively bring legitimate prosecutions, and still be doing corruption. You just need to confine your prosecutions to your political enemies, whether or not they are more guilty than your allies (think here of the GOP dragging the Clintons into Epstein depositions).
14 years later, Xi’s anti-corruption purges continue apace, with 100 empty seats at this year’s National People’s Congress, whose former occupants are freshly imprisoned or awaiting trial.
I don’t know the details of all 100 prosecutions, but China absolutely has a corruption problem that goes all the way to the upper echelon of the state. I find it easy to believe that the officials Xi has targeted are guilty – and I also wouldn’t be surprised to hear that they are all supporters of Xi’s internal rivals for control of the CCP.
As the Epstein files demonstrate, anyone hoping to conduct a purge of America’s elites could easily do so without having to frame anyone for crimes they didn’t commit (remember, Epstein didn’t just commit sex crimes – he was also a flagrant financial criminal and he implicated his network in those crimes).
It’s not just Epstein. As America’s capital classes indulge their incestuous longings with an endless orgy of mergers, it’s corporate Habsburg jaws as far as the eye can see. These mergers are all as illegal as hell, but if you fire a mouthy comedian, you can make serious bank.
And if you pay the right MAGA chud podcaster a million bucks, he’ll grease your $14b merger through the DoJ.
And once these crooks merge to monopoly, they embark on programs of lawlessness that would shame Al Capone, but again, with the right podcaster on your side, you can keep on “robbing them blind, baby!”
The fact that these companies are all guilty is a foundational aspect of Trumpism. Boss-politics antitrust – and anti-corruption – doesn’t need to manufacture evidence or pretexts to attack Trump’s political rivals. When everyone is guilty, you have a target-rich environment for extorting bribes.
Just because the anti-corruption has legit targets, it doesn’t follow that the whole thing isn’t corrupt…
On the practice of selective enforcement and prosecution: “Corrupt anticorruption,” from @pluralistic.net.web.brid.gy.
For thoughts on what we can do about all of this, see “Building political integrity to stamp out corruption: three steps to cleaner politics” (source of the image above)
* Menander
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As we decide on disinfectants, we might recall that it was on this date in 37 CE, following the death of Tiberius, that the Roman Senate annulled Tiberius’ will and confirmed Caligula, his grandnephew, as the third Roman emperor. (Tiberius had willed that the reign should be shared by his nephew [and adopted son] Germanicus and Germanicus’ son, Caligula.)
While he has been remembered as the poster boy for profligacy and corruption, Caligula (“Little Boots”) is generally agreed to have been a temperate ruler through the first six months of his reign. His excesses after that– cruelty, self-dealing, extravagance, sexual perversity– are “known” to us via sources increasingly called into question.
Still, historians agree that Caligula did work hard to increase the unconstrained personal power of the emperor at the expense of the countervailing Principate; and he oversaw the construction of notoriously luxurious dwellings for himself. In 41 CE, members of the Roman Senate and of Caligula’s household attempted a coup to restore the Republic. They enlisted the Praetorian Guard, who killed Caligula– the first Roman Emperor to be assassinated (Julius Caesar was assassinated, but was Dictator, not Emperor). In the event, the Praetorians thwarted the Republican dream by appointing (and supporting) Caligula’s uncle Claudius as the next Emperor.
“The call is coming from inside the house”*…
As the old proverb goes, “we become what we hate.” In this post, two examples of groups adopting practices they had decried in their enemies.
First, from the fetid ocean of political finance: it’s been pretty obvious for some time that the Trump Administration and the Republican party at large have embraced the doctrine of “honest graft” (and here and here and…). What is perhaps less obvious is the extent to which that impulse has affected (infected?) their approach to campaign finance per se (and here).
But, as Stanford professor Adam Bonica demonstrates, greed is an equal opportunity vice…
The digital deluge is a familiar annoyance for anyone on a Democratic fundraising list. It’s a relentless cacophony of bizarre texts and emails, each one more urgent than the last, promising that your immediate $15 donation is the only thing standing between democracy and the abyss.
The main rationale offered for this fundraising frenzy is that it’s a necessary evil—that the tactics, while unpleasant, are brutally effective at raising the money needed to win. But an analysis of the official FEC filings tells a very different story. The fundraising model is not a brutally effective tool for the party; it is a financial vortex that consumes the vast majority of every dollar it raises.
We all have that one obscure skill we’ve inadvertently maxed out. Mine happens to be navigating the labyrinth of campaign finance data. So, after documenting the spam tactics in a previous article, I told myself I’d just take a quick look to see who was behind them and where the money was going.
That “quick look” immediately pulled me in. The illusion of a sprawling grassroots movement, with its dozens of different PAC names, quickly gave way to a much simpler and more alarming reality. It only required pulling on a single thread—tracing who a few of the most aggressive PACs were paying—to watch their entire manufactured world unravel. What emerged was not a diverse network of activists, but a concentrated ecosystem built to serve the firm at its center: Mothership Strategies.
To understand Mothership’s central role, one must understand its origins. The firm was founded in 2014 by senior alumni of the Democratic Congressional Campaign Committee (DCCC): its former digital director, Greg Berlin, and deputy digital director, Charles Starnes. During their tenure at the DCCC, they helped pioneer the fundraising model that now dominates Democratic inboxes—a high-volume strategy that relies on emotionally charged, often hyperbolic appeals to compel immediate donations. This model, sometimes called “churn and burn,” prioritizes short-term revenue over long-term donor relationships.
After leaving the DCCC, Berlin and Starnes effectively privatized this playbook, building a business around the party’s most aggressive tactics and turning an internal strategy into a fundraising powerhouse for the Democratic Party—or so it might seem on the surface.
They became the operational heart of a sprawling nexus of interconnected political action committees, many of which they helped create and which now serve as their primary clients. These are not a diverse collection of grassroots groups; they are a tightly integrated network that functions primarily to funnel funds to Mothership. Their names are likely familiar from the very texts and emails that flood inboxes: Progressive Turnout Project, Stop Republicans, and End Citizens United to name a few.
The relationship between the firm and this network is cemented by blatant self-dealing. The most glaring example is End Citizens United. In 2015, just one year after founding their consulting firm, Mothership principals Greg Berlin and Charles Starnes also co-founded this PAC. It quickly became one of their largest and most reliable clients, a perfect circle of revenue generation that blurs the line between vendor and client.
The core defense of these aggressive fundraising tactics rests on a single claim: they are brutally effective. The FEC data proves this is a fallacy. An examination of the money flowing through the Mothership network reveals a system designed not for political impact, but for enriching the consultants who operate it.
To understand the scale of this operation, consider the total amount raised. Since 2018, this core network of Mothership-linked PACs has raised approximately $678 million from individual donors. (This number excludes money raised by the firm’s other clients, like candidate campaigns, focusing specifically on the interconnected PACs at the heart of this system.) Of that total fundraising haul, $159 million was paid directly to Mothership Strategies for consulting fees, accounting for the majority of the $282 million Mothership has been paid by all its clients combined…
… After subtracting these massive operational costs—the payments to Mothership, the fees for texting services, the cost of digital ads and list rentals—the final sum delivered to candidates and committees is vanishingly small. My analysis of the network’s FEC disbursements reveals that, at most, $11 million of the $678 million raised from individuals has made its way to candidates, campaigns, or the national party committees.
But here’s the number that should end all debate:
This represents a fundraising efficiency rate of just 1.6 percent.
Here’s what that number means: for every dollar a grandmother in Iowa donates believing she’s saving democracy, 98 cents goes to consultants and operational costs. Just pennies reach actual campaigns…
For all of the details, and an explanation of why the Party looks the other way: “The Mothership Vortex: An Investigation Into the Firm at the Heart of the Democratic Spam Machine,” from @adambonica.bsky.social.
Second, consider the case of Texas, a state that used to hate lawsuits, the nanny state, and the film industry. As Christopher Hooks reports, it’s learned from the Golden State to embrace all three as a means of cultural influence. After unpacking the state government’s turnabout from tort reform to encouaging rise of private enforcement of laws through fines and lawsuits and it’s shift from it’s prior rejection of government nutritional and health guidelines, Hooks looks at Texas’ new push to become a seat of film and television production…
… Beneath the long-standing contempt for California and its tyranny was, apparently, a fair bit of envy. On no issue was this more obvious than the expensive package of film incentives the Lege passed this year—$300 million to refund movie and TV productions for money spent in the state.
Most lawmakers who supported the package doubtless did so because of a general positive feeling about the arts, or just because Matthew McConaughey came to the Capitol to lobby for it. But implicit in the way some lawmakers talk about the baleful influence of the California-centered movie industry—currently in a state of near collapse because of AI and the streaming revolution—is a belief that it represents a malign channel of cultural control and coercion by liberal Hollywood elites. In writing the incentives, Texas lawmakers seemed to be asking: What if we had that power instead?
Texas is likely to attract many additional TV and film shoots with this new money. Some productions will come specifically to take advantage of the bill’s Texas Heritage Project funding, a pot of money set aside and controlled by the governor’s appointees to fund projects that promote “family values” and portray “Texas and Texans in a positive fashion.” A cynic might blink twice and wonder if the governor just gave himself a propaganda fund.
The subtext of the bill is probably more important. The state has already in the recent past revoked film incentives from a movie, 2010’s Machete, because state officials disapproved of its message. Future films made here will likely aim to avoid the watchful eye of state lawmakers. The Legislature seems to be embodying the favorite idea of a profoundly influential Californian, Andrew Breitbart, who reminded conservatives at every possible opportunity that “politics is downstream from culture.” It’s perhaps true, but it’s also the kind of thing you think up when you’ve lived in Santa Monica for too long.
After ten years of a governor who has vowed to keep West Coast ways from our pleasant shores, the state is awash in tech exiles. Big money and a strong executive dominate the Legislature more than ever before. Republicans in the House have turned into granola-eating health food obsessives while trial lawyers are on the ascent. The lieutenant governor spends his days entertaining movie stars. Close your eyes, and you can almost imagine you’re U-Hauling down the 405…
Becoming your enemy: “Right-Wing Lawmakers Are Trying to California Your Texas,” from @hooks.bsky.social in @texasmonthly.bsky.social.
Yet another bizzaro flip: “Welcome to the age of Hard Tech” from @taylorlorenz.bsky.social.
* from When a Stranger Calls
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As we try to appreciate the ironies, we might recall that it was on this date in 2008, that a tour bus belonging to the Dave Matthews Band dumped an estimated 800 pounds (360 kg) of human waste from the bus’s blackwater tank through (grated surface of) the Kinzie Street Bridge in Chicago onto an open-top passenger sightseeing boat sailing in the Chicago River below. Roughly two-thirds of the 120 passengers aboard the tour boat were soaked.
More here.

“I seen my opportunities and I took em”*…
Since he kicked off his campaign, Trump’s business empire has landed billions of dollars of deals at home and abroad. Max Abelson and Annie Massa bring the receipts…
The way Donald Trump sees it, he’s the greatest businessman to campaign for the White House.
“I’m the most successful person ever to run,” he told an Iowa reporter in 2015. “I have a Gucci store that’s worth more than Romney.”
That might have been an exaggeration, but this isn’t: A decade later, no modern American president has positioned his family to make so much money while in the White House. Already, since the early days of his reelection campaign, he’s more than doubled his net worth to about $5.4 billion.
In that time, the Trump name has powered more than $10 billion of real estate projects, a multibillion-dollar valuation for his money-losing social-media company, more than $500 million in sales from just one of his crypto ventures and millions of dollars more from stakes in companies that offer financial services, guns and drone parts. Family members have also scored an array of corporate positions — at least seven new roles as an adviser or executive for his oldest son, Donald Trump Jr., alone.
Compared with the tumult of the presidency, the empire’s approach is consistent and clear: Sell the family name. In any other era, this scale of presidential moneymaking would threaten to be the story of the year, but political uproar has hogged most of the attention.
In his first months in power, Trump put tariffs on and took some off, blamed Ukraine for Russia’s attacks, sent immigrants to a foreign prison and teased a third term that the Constitution doesn’t allow. And as he’s hacked away at the government’s workforce and budget, he’s shrunk the agencies and offices that oversee his public company, crypto projects and even conflicts of interest.
Trump has loosened constraints on overseas dealmaking that were put in place in his last administration. (He also let Elon Musk, the billionaire leading an effort to slash government spending, police his own conflicts). This week, he’s scheduled to dine with his new memecoin’s top holders.
What makes this era even more remarkable is how close Trump came to ruin. His first term ended with a riot at the Capitol, later followed by a $454 million civil fraud judgment and his conviction for falsifying business records. Trump has appealed both.
Now, his assets are in a trust overseen by his oldest son. And despite talk of a recession, the clan stands to get richer than ever.
“President Trump has been the most transparent president in history in all respects, including when it comes to his finances,” said a White House spokesperson. “President Trump handed over his multibillion-dollar empire in order to serve our country, and he has sacrificed greatly. President Trump has disclosed his financial holdings through his annual financial disclosure report and he will continue to do so.”
Trump Jr. said he shouldn’t be expected to change his career on account of his dad’s power.
“I’m a private citizen who has been a businessman and serial investor my entire adult life,” he said in a statement. “It’s ridiculous to expect me to stop doing what I’ve always done to provide for my five children just because my dad was elected president.”
These are the corporate connections, crypto projects and licensing deals — all of them since the 2024 campaign began — that the Trumps are using to climb higher than ever…
The gory (and mind-boggling) details: “The Trump Family’s Money-Making Machine” (gift link) from @bloomberg.com.
Apposite: “A World of MAGA Liquor Is Exploding Online. But What If It’s Not Real?“
* “Everybody is talkin’ these days about Tammany men growin’ rich on graft, but nobody thinks of drawin’ the distinction between honest graft and dishonest graft. There’s an honest graft, and I’m an example of how it works. I might sum up the whole thing by sayin’: “I seen my opportunities and I took ’em.” — George Washington Plunkitt, New York State Senator and “Sage of Tammany Hall” (See also)
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As we ponder probity (and its absence), we might spare a thought for Jonathan Wild; he died on this date in 1725. An English thief-taker and a major figure in the organization and growth of London’s criminal underworld, he was notable for operating on both sides of the law: posing as a public-spirited vigilante known as the “Thief-Taker General,” he simultaneously ran a significant criminal empire, and used his crimefighting role to remove rivals and launder the proceeds of his own crimes (fencing, but also selling goods he’d stolen back to their owners).
“I Seen My Opportunities and I Took ’Em”*
U.S. Senators and Congresspeople are routinely privy to news that easily fits the definition of insider information (“a fact about a public company’s plans or finances that has not yet been revealed to shareholders and that could give an unfair advantage to its possessors if acted upon“), investing on which would constitute the crime of insider trading in any other setting. There are easy ways to avoid this risk (blind trusts, widely-held stock funds, et al.); still, over half of our elected representatives trade individual stocks.
The chart above is from Quiver Strategies, a company with a “democratizing” mission:
Over the past decade, alternative data has exploded in popularity among professional money managers. Alternative data allows investors to tap into new and unique data sources to aid their decisions. However, alternative data is typically priced for institutional clients, and is not widely available to retail investors.
Trends in FinTech such as commissions-free trading have made it easier than ever to actively manage your own portfolio, which has created millions of retail traders around the world.
Quiver was founded by two college students in February of 2020, with the goal of bridging this information gap between Wall Street and non-professional investors.
Maybe not surprisingly, one of the most successful families of strategies they’ve identified tracks the stock trades of Senators and Congresspeople (per the illustration above; use pull-down to see others).
Huge majorities of Americans favor a ban on Congressional trading; and a few legislators have introduced a bill to curtail it (along with others). But it been tried before, and failed. As for this wave, as Reuters reports “It was unclear when the legislation might be considered in committee or whether it will advance to the full Senate for debate and votes anytime this year.”
[Toth to Mark Frauenfelder and Boing Boing]
* Tammany Hall boss George Washington Plunkitt, as part of his justification of what he called “honest graft“
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As we hold our noses, we might note that today is National Happy Hour Day.









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