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Tea Party Financiers Owe Their Fortune to Josef Stalin

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Posted on Apr 18, 2010
Joseph Stalin
Wikimedia Commons / Margaret Bourke-White

By Yasha Levine, AlterNet

(Page 3)

My associate and I pulled him from under an overturned car in Tiflis, and he was amazed. "Why did you save my life?" he said. "We are enemies. I would not have saved yours. Perhaps when the turn there, I will spare your lives." He told me that if his own mother stood in the way of the revolution he would strangle her with his bare hands. This is the mark of a hard-core Communist. They will do anything—anything.

Fred Koch’s paranoia continued to spiral out of control until his ticker quit in 1967. But by that time his son, Charles G. Koch, had already taken over control of the family business. He appropriated his father’s communist paranoia and made it the basis of the family’s free-market business philosophy.

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"Once, my father ran a business in the ex-Soviet Union, and all engineers who worked with my father were imprisoned by Stalin later. My father, who had experienced this, became an anti-communist and thought the value of economical freedom and prosperity was more important than ever before," Charles said during an interview with a Korean newspaper in 2008, leaving out the part how evil socialist cash was the foundation of the Koch family’s wealth.

Once he took over, it was clear that Charles had big plans for Koch Industries. He was going to push the limits of corporate growth by plowing 90 percent of the company’s profits back into the till and diversifying to the max. It worked. The company expanded at an unreal rate: its revenues increased from $100 million in 1966 to $100 billion in 2008—that’s 1,000-fold growth.

Today, it operates thousands of miles of pipelines in the United States, refines 800,000 barrels of crude oil daily, buys and sells the most asphalt in the nation, is among the top 10 cattle producers, and is among the 50 largest landowners. Koch Industries also poured hundreds of millions of dollars into right-wing organizations like Institute for Humane Studies, the Cato Institute, the Mercatus Center at George Mason University, the Bill of Rights Institute, the Reason Foundation, Citizens for a Sound Economy and the Federalist Society—all of them promoting the usual billionaire-friendly ideas of the free market, deregulation and smaller government.

If that expansion looks too fast to be legit, that’s because it was.

William Koch, the third brother who had a falling-out with Charles and David back in the ’80s over Charles’ sociopathic management style, appeared on "60 Minutes" in November 2000 to tell the world that Koch Industries was a criminal enterprise: "It was – was my family company. I was out of it," he says. "But that’s what appalled me so much… I did not want my family, my legacy, my father’s legacy to be based upon organized crime."

Charles Koch’s racket was very simple, explained William. With its extensive oil pipe network, Koch Industries’ role as an oil middleman—it buys crude from someone’s well and sells it to a refinery—makes it easy to steal millions of dollars worth of oil by skimming just a little off the top of each transaction, or what they call “cheating measurements” in the oil trade. According to William, wells located on federal and Native American lands were the prime targets of the Koch scam.

"What Koch was doing was taking all these measurements and then falsifying them on the run sheets," said Bill Koch. "If the dipstick measured five feet 10 inches and one half inch, they would write down five feet nine and one half inches."

That may not sound like much, but Bill Koch said it added up. "Well, that was the beauty of the scheme. Because if they’re buying oil from 50,000 different people, and they’re stealing two barrels from each person. What does that add up to? One year, their data showed they stole a million and a half barrels of oil."

In 1999, William decided to take his brothers down. He sued Koch Industries in civil court under the False Claims Act, which allows whistleblowers to file suit on behalf of the federal government. William Koch accused the company of stealing hundreds of millions of dollars in oil from federal lands.

The band of brothers settled the case two years later, with Charles agreeing to pay $25 million in penalties to the federal government to have the suit dismissed. It turned out to be a great deal for Charles and David, considering that in the 1980s their "adjustments" allowed Koch Industries to siphon off 300 million gallons of oil without paying. It was pure profit—free money—to the tune of $230 million.

At the trial, 50 former Koch gaugers testified against the company, some in video depositions. They said employees even had a term for cheating on the measurements. "We in the company referred to it as the Koch Method because it was a system for cheating the producer out of oil," said one of the gaugers, Mark Wilson.

Ah, finally! Have we stumbled onto the secret to the family’s success? At the bottom of it all, is the Koch Method that funds all the libertarians nothing but old-fashioned theft? Or, as Koch hero Ludwig von Mises might ask, "Is the Koch Method just an unceasing sequence of single thefts?"


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By MrK, April 2, 2012 at 9:23 am Link to this comment
(Unregistered commenter)

By Artful Dodger, April 19, 2010 at 4:52 am

” The other problem is that any mention of the Rothschilds as international bankers who had exerted an undue influence on governments is likely to paint the author as anti-Semitic. “

I’ve found that too. You can say Goldman Sachs all day long, but the second you say Rothschild, you’re ‘anti-semitic’.

Even though NM Rothschild brags about their role in the colonisation of Southern Africa, on their own website. What does that make Rothschild bank - selfhating?

I think a lot of the anti-Rothschild material on the internet is obviously anti-semitic, right from the ‘glowing eyes’ and other demonisation, or secret socities - who can prove or disprove that?

However, that doesn’t make NM Rothschild, RIT Capital Partners, etc. disappear, or make them any less influential in the globalisation process. In fact you even get branded ‘anti-semitic’ when you mention the Rockefellers and their organisations, and they’re not even Jewish.

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By dennis, October 16, 2010 at 10:12 pm Link to this comment
(Unregistered commenter)

Lies, TEA party which I am a member of is your average loving American who cares about his country.
I write to about twenty like souls who just want to
save American from socialism.

God bless America.

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Blackspeare's avatar

By Blackspeare, April 21, 2010 at 10:53 am Link to this comment

It’s not how you make money, but how you keep your money!

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By 8bithero, April 21, 2010 at 3:40 am Link to this comment
(Unregistered commenter)

No, sir!  Logic has NO place in the Tea Party movement. 
If you offer logic, you strip them of their fear and
irrationality that they are fueled by.  Logic will only
destroy this gaggle of angry, middle aged Mid Western
and Southern, Christian white people.

Like their favorite book says, fruit from the Tree of
Knowledge is forbidden.

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By bogi666, April 21, 2010 at 2:23 am Link to this comment
(Unregistered commenter)

Anarcissee, it is communism, not socialism, when the government own the means of production.Contemporary social democracies don’t own the means of production and have stock markets which means private corporations. MARCUS MEDLER, it is socialism for the wealthy and capitalism for the poor. Koch learned well from Stalin and liked it.They certainly aren’t libertarians, that’s just their ruse.

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By amunaor, April 20, 2010 at 5:21 pm Link to this comment

RE: ERIC H, April 20 at 8:41 pm

***

Not defending Koch in any way, but it seems someone might be slightly touched with the blight of McCarthy’s paranoia.

Peace, Best Wishes and Hope

WikiLeaks—Collateral Murder:
http://www.collateralmurder.com/

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By amunaor, April 20, 2010 at 4:57 pm Link to this comment

RE: G.Anderson, April 20 at 8:30 pm

***

Have you ever heard of ‘Kingdom Towing’? Its analogous to Guido; from the lending institute, coming to your home in the middle of the night, with a tow truck, to repossess the vehicle for which your payments have lapsed; but in this case the repossession process; the tow truck would be the War Machine.

The neoChinese Capitalists would look back at the nest in which they were born and shat in, as a liability and let rip.

Peace, Best Wishes and Hope


WikiLeaks—Collateral Murder:
http://www.collateralmurder.com/

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By ERIC H, April 20, 2010 at 4:41 pm Link to this comment

I had understood that George Soros (funding Obama, Moveon.org, DNC) also made his mind boggling fortune during WWII by seizing assets from fellow Jews and other dirty deeds which are outdone only by his ongoing influence and dark political agenda.

Quite ironic that the Stalinists with the deepest hatred of the founding concepts of our nation would select this misleading connection. And usually it is those whom have lived under the worst most leftist regimes that have the greatest appreciation of Jefferson’s superior ideology, so perhaps one might consider that and/or easing of conscience a more likely motive for a modern investment in the greater good.

http://www.elh1.com/jefferson/

The insight that is dismissed as Koch’s “paranoia” in this lefto-dogma article is also consistent with a better understanding of the realities of the post WWII world:

“In the months I traveled with (hardcore Communist Jerome Livshltz) he gave me a liberal education in Communist techniques and methods. He told me how the Communists were going to infiltrate the U.S.A. in the schools, universities, armed forces and to use his words, “Make you rotten to the core.” I believe that due to his American experience he was one of the original architects of the Communist plan of subversion of the U.S.A.”

Reminds me a bit of one Russian’s prediction of the Obama presidency.

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By G.Anderson, April 20, 2010 at 4:30 pm Link to this comment

Nietche, once said something like this… history is the process by which the dead bury the living…

The Soviet Union is gone, we won they lost…

and now were losing the peace…because of the Plutocracy…in the here and now…

socialism, communism…those are monsters under the bed, the ultimate fear projection of hard core plutocrats…

...who are in hock up to their eyeballs, to Communist China…which is now one of the leading capitalist state managed economies…

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By ERIC HANSON, April 20, 2010 at 4:27 pm Link to this comment
(Unregistered commenter)

I had understood that George Soros (funding Obama, Moveon.org, DNC) also made his mind boggling fortune during WWII by seizing assets from fellow Jews and other dirty deeds which are outdone only by his ongoing influence and dark political agenda.

Quite ironic that the Stalinists with the deepest hatred of the founding concepts of our nation would select this misleading connection. And usually it is those whom have lived under the worst most leftist regimes that have the greatest appreciation of Jefferson’s superior ideology, so perhaps one might consider that and/or easing of conscience a more likely motive for a modern investment in the greater good.

http://www.elh1.com/jefferson/

The insight that is dismissed as Koch’s “paranoia” in this lefto-dogma article is also consistent with a better understanding of the realities of the post WWII world:

“In the months I traveled with (hardcore Communist Jerome Livshltz) he gave me a liberal education in Communist techniques and methods. He told me how the Communists were going to infiltrate the U.S.A. in the schools, universities, armed forces and to use his words, “Make you rotten to the core.” I believe that due to his American experience he was one of the original architects of the Communist plan of subversion of the U.S.A.”

Reminds me a bit of one Russian’s prediction of the Obama presidency.

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By marcus medler, April 20, 2010 at 1:27 pm Link to this comment

How did these thugs get the rights to put in
PIPELINES that run across thousands of private
property lines?(so much for libertarian business
basics)
The greater good gave them the private right
to violate hundreds of other’s rights.  The
feared government was the muscle. The family
tradition of robbery and cozy relationship with
authority continues- that is the Koch method.

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amunaor's avatar

By amunaor, April 20, 2010 at 10:32 am Link to this comment

Madness feeds violence and violence madness.

Tea Party Protester Threatens Interviewer, U.S. Capitol March 2010, as he spits and sputters his hatred all over himself and camera:

http://www.youtube.com/watch?v=bgec9WX21ik

Peace, Best Wishes and Hope

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By amunaor, April 20, 2010 at 10:25 am Link to this comment

Anarcissie,

Any psychological ‘State’ that panders to, and feeds the base instincts within the beast; without checks and banances, results in catostophic misery to others.

Peace, Best Wishes and Hope

WikiLeaks—Collateral Murder:
http://www.collateralmurder.com/

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By Anarcissie, April 20, 2010 at 10:07 am Link to this comment

amunaor—The term “social democracy” these days is usually used to denote the Welfare state, and “socialism” historically to denote the ownership and control of the means of production by the workers.  As the workers do not seem to want to control the means of production, the latter proposal has proved somewhat problematical.

I continue to not understand why someone who make a big pile of money from Stalin might not turn into a libertarian, or how this fact would affect the politics or other interests of their beneficiaries.  Apparently it has not even kept the Tea Parties on a libertarian track.

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By amunaor, April 20, 2010 at 9:36 am Link to this comment

RE: elisalouisa, April 20 at 10:36 am
***

Also, throughout the ‘Cold War’, Avril Harriman owned a railroad empire within the confines of the former USSR.

All systems are Capitalist systems. The determining factor is who owns and controls the Capital Machinery; the means for: Production, Distribution and Allocation of Goods and Services.

In brief:

A sewing machine is a ‘Capital Machine’; the shirt it produces is a ‘Capital Good’; the Boats, Planes, Trucks and Trains are Capital Machinery for Distribution of the shirts.

Within a true Social Democracy, the workers (Labor Unions) would actually ‘own’ and ‘run’ the physical apparatus of the Capital Machinery; an upside down pyramid, where the bulk of the people, keep self-serving, power-madness in check, at the bottom.

What exists today is an Oligarchy; a runaway ponzi-scheme, without any care or scruples to what happens to anyone below the feeding frenzy at the top.

Peace, Best Wishes and Hope

WikiLeaks—Collateral Murder:
http://www.collateralmurder.com/

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By Dave Thomas, April 20, 2010 at 7:29 am Link to this comment
(Unregistered commenter)

Wow, talk about liberal fear mongering. The best thing about the tea party movement is the fear they strike in the hearts of liberal disciples of big government.

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By elisalouisa, April 20, 2010 at 6:36 am Link to this comment

Follow up articles on the Cato Institute and other think tanks which benefit the power elite would be good. Just google Charles and David Koch, keep going through the pages and one might even conclude that the Tea Baggers are playing right into the hands of the enemy.

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By bogi666, April 20, 2010 at 4:35 am Link to this comment
(Unregistered commenter)

It’s not a free market, it’s a FLEECE MARKET, the individual American taxpayers are FLEECED of their tax monies and given to the CORPORATE AND WEALTHY WELFARE KINGS.

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By bogi666, April 20, 2010 at 4:24 am Link to this comment
(Unregistered commenter)

The term FREE MARKET is a fabrication and what really exists is the FLEECE MARKET, American taxpayers are FLEECED of their tax monies and transferred to the wealthy which includes the protection of the CORPORATE and WEALTHY WELFARE KINGS investments around the world by the Pentagon which has to disguise its real purpose with the propaganda terms of freedom and democracy as its, the Pentagons, role. Anyone who believes this is an idiot. Deficit spending is how it works. The procceds of the Treasury bonds issued are doled out to the WELFARE KINGS with the interest and principle paid by individual taxpayers.

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By ofersince72, April 20, 2010 at 12:04 am Link to this comment

John K
I agree with you except Ron Paul…
Who is he kidding still hiding in the Repulican Party
casting himself as “the real republican”.

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By amunaor, April 19, 2010 at 10:19 pm Link to this comment

((RE: Ralph Kramden, April 19 at 7:37 pm

…“property is theft.” What this country needs is to pay more attention to the life ethics of the Apache and less to the robber-baron ethics of Milton Friedman…))

Ralph, the Indigenous population had not concept of ‘land ownership’, when the white European’s arrived; which is why, for a few pots and pans, they were so easily swindled ; sending out missionaries, who requested their parishioners close their eyes in prayer, and while they had their eyes closed, stole their land and water rights.

The preamble to the Constitution too implies a family structure: of, for and by the people. Consider the fact that this Instrument was written long before the term – Socialism – became horribly stigmatized by the bloody events of WWII, propagandized by the Capitalists who succeeded driving the concept into the ground.

Wall Street horse thief ethics have matured into fancy corporate banking algorithms, designed to fleece; Free-Market-Swindlers & Speculating-Bankers, or whatever other euphemistic façade a Con-Artist lurks from behind; all are predators seeking to snare the unsuspecting passerby.

Peace, Best Wishes and Hope


WikiLeaks—Collateral Murder:
http://www.collateralmurder.com/

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By Bobbi, April 19, 2010 at 6:16 pm Link to this comment
(Unregistered commenter)

Yes and the Kennedy Family got their money from bootlegging, anf they keep their money offshore in Fiji.
I don’t think that you can denigrate a hard working man, like Koch, because of his clientelle, unless he were selling some kind of illegal commodity.

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By Ralph Kramden, April 19, 2010 at 3:37 pm Link to this comment
(Unregistered commenter)

Who was it that said that “behind every great wealth lies a great crime?” Then we should pay attention to “property is theft.” What this country needs is to pay more attention to the life ethics of the Apache and less to the robber-baron ethics of Milton Friedman. It amazes me to watch so-called Christians embrace capitalism. If it weren’t for usury, there would be no accumulation of capital, and usury was forbidden in the bible. Furthermore, Christ was a socialist: Acts 2:44-45; “...and distribution was made unto every man according as he had need.” Bukarin’s: “From each according to his ability; to each according to his need,” was Christian. Amazing.

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By Anarcissie, April 19, 2010 at 10:40 am Link to this comment

The article is an interesting tale, but I don’t see how it reflects on the Tea Parties.  If the Koches are libertarians, from their point of view the Tea Parties have already been subverted.

ITW—Antisemites are tiresome subnormal cretins.  In any sort of open forum, you will find them piping up, because otherwise no one will listen to them.  Under most circumstances, the less attention paid to them, the better.

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By P. T., April 19, 2010 at 9:33 am Link to this comment

Glenn Beck should make one of his charts about this matter.

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By Mark, April 19, 2010 at 8:15 am Link to this comment
(Unregistered commenter)

It’s the quintessential capitalist tale.

Fred Koch goes to work for an employer, Joe Stalin, who couldn’t care less about Fred as a person. They both realize that if they combine forces they will mutually benefit.

The employer eagerly absorbs all Fred has to offer: time, labor, know-how, etc.

Once Uncle Joe had gotten what he needed out of Fred Koch, he cast him aside. Fred got the boot from his employer, no different than, for example, a laid-off 50 year old steelworker.

The twist here is that, whereas the steelworker has nothing to assuage his hurt feelings but nemployment comp and bitter criticism directed against his former employer while conversing with friends, Fred Koch has millions and uses them to broadcast his criticism of his former employer to America at large.

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By Artful Dodger, April 19, 2010 at 5:52 am Link to this comment
(Unregistered commenter)

Well if anyone should know about communism, it would be the Koch’s. I think that the idea of free markets exists from this example. If the mostly Rockefeller group of oil companies would not use Koch technology, then the USSR Inc. would step in. As for cultural subversion of the USA, the idea seems to make sense in that we have high divorce rates, children raising themselves, and a peer culture that excels in urban gangs. Free trade seems calculated to destroy American capitalism, and we have a banking system that has created enough debt and money to buy out this country in foreclosure many times over. We have deep capture of regulatory agencies by large corporations. We already have a state media of sorts. The CFR and the Bilderberger groups act as high soviets of sorts. It’s not high communism for sure, but it does resemble treason from on up high. Recall how American nuclear technology was secretly transferred during the 40’s or how many tech secrets ended up in Chinese hands during Clinton and GW Bush. There are the fall guys like Win Ho Lee and the Rosenbergs as well as the Hollywood communist talent, who had little to do with anything. It was quite unjust. As soon as anyone points to the Pentagon, the NSA or other intelligence agencies, they get necklaced. As to the “Jooz”, the John Birch society has not been monolithic in its antisemitism. I think a lot of this has to do with Buckley trying to confuse the pubic. Some patriots are likely to be lunatics or controlled assets of the intelligence community. It is well known that the Black Panthers and other authentic new left organizations were being infiltrated. Same was happening with the Birchers. The other problem is that any mention of the Rothschilds as international bankers who had exerted an undue influence on governments is likely to paint the author as anti-Semitic. Many Birchers had made that connection. The sad thing is that there are evil Jews as there are evil Christians. I don’t think it would make anyone anti-Semitic if he or she opined that Henry Kissinger was evil. And yes many Birchers were racist, but I don’t think they were at all wrong about the New World Order. Many intellectuals had talked about it. Just look up Bertrand Russell, H.G. Wells, and Charles Galton Darwin. Much of Lenin’s political science is well used by today’s Repub-Dem establishment. I think of the battle between Western Cartel capitalism and USSR monopoly autarchy as experiments to create an improved leviathan. It is not inconceivable to think of a corporation as Stalinist. And I find the use of ex-KGB security experts in American government very strange. (You should research this. Do not take my word for it.) I have heard the American system of oligarchic collectivism referred to as ingenious by Eastern Europeans, because for so long Americans never knew that they were swallowing propaganda as the system appears so “free”.

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By Z1, April 19, 2010 at 5:20 am Link to this comment
(Unregistered commenter)

Sounds like another family that built there fortune by collaborating with the NAZI’s instead of the Communists. Does the name Bush sound familiar?

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By ScottMc, April 19, 2010 at 5:04 am Link to this comment
(Unregistered commenter)

You say “godless” like that’s a BAD thing. Taken a look at your society recently?

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By Inherit The Wind, April 19, 2010 at 3:30 am Link to this comment

JimBob, April 19 at 3:00 am #

Hmmm… the Koch family.  Jewish, much?  How is it these guys have such a way with money?
**********************************************
ANOTHER neo-Nazi $#!thead crops up! Try READING for a change, instead of sounding like an IMBECILE!

Didn’t you see? Grand-daddy was either a DUTCH immigrant or the son of a DUTCH immigrant.

Daddy was a FOUNDER of the John Birch Society—which has ALWAYS been racist, bigoted and anti-Semitic.  That means they hate Blacks, Hispanics, Immigrants AND Jews—explicitly.

And people here at TD think I am paranoid about Jew-hatred here.

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By JimBob, April 18, 2010 at 11:00 pm Link to this comment

Hmmm… the Koch family.  Jewish, much?  How is it these guys have such a way with money?

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By ocjim, April 18, 2010 at 8:40 pm Link to this comment

The moral is that if you got your money through theft, you have no business pontificating about your own purity and trying to justify taking away the livlihood of all others, especially the poor.

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By cabdriver, April 18, 2010 at 8:37 pm Link to this comment
(Unregistered commenter)

My, that’s an enlightening history.

“Steal a little and they throw you in jail- steal a lot and they make you king.”

One correction: Koch was not the Libertarian presidential candidate in 1980. He was the vice-presidential candidate.

Ed Crane was the LP presidential candidate. I should know- I voted for him.

(Politics has proved to be quite an intellectual odyssey, for me.)

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By John K, April 18, 2010 at 7:21 pm Link to this comment

Wow - this is it. How the Koch family got their money?  Do I need to remind you of Joe Kennedy - does that make Robert Kennedy Jr a monster as well?

The tea party origins are Ron Paul, they are (or were) real grass roots folks who care deeply about America and don’t like seeing our civil liberties being taken away. They were also very committed to getting out of the war and ending our Imperial ambitions abroad - at least initially.

The shitheel Dick Army organization got in front of the parade and has “steered” it away from its anti-imperialist roots and wound people up on their themes. It’s bullshit. 

One thing has become clear to me. You can’t have a spontaneous movement without attracting some fringe people - which the media will showcase at every opportunity. This happened with the left as well in the 60s.

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By RickinSF, April 18, 2010 at 6:31 pm Link to this comment
(Unregistered commenter)

Mommy was right, when she told me: “It’s not polite to ask a wealthy person how
they made their first fortune. It’ll always be embarassing.”

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