Best of the Week
DEFLATION is Winning! - Watch the Video its FREE
Most Popular of the Week
1.Cap and Trade Bill HR 2454 Will Lead to Capital Flight - Dr_Ron_Paul
2.Goldman Sachs The Fourth Branch of the U.S. Government- Graham_Summers
3.The Coming Economic Apocalypse- Roy_F_Grieder
4.The End of the Recession?- John_Mauldin
5.Bernanke is a Total Failure Unsuited for Role as Fed Chairman- Mike_Shedlock
6.Fed Market Manipulation, Surmounting The Main Threat To Profits And Protection -DeepCaster_LLC
7.China Mega-trend Stocks Stealth Bull Market Update, SSEC Up 47%- Nadeem_Walayat
Weeks Analysis
A Political-economic Oligarchy has Taken Over the United States of America- 4th July 09
SNP Would Bankrupt an Independent Scotland, But Benefit England - 4th July 09
Green Shoots of Economic Recovery and Other Bernanke Lies - 4th July 09
HyperInflation or Deflation Depression, Which is More Probable?- 4th July 09
Current Recession Is a Severe Credit Bust of Depression-Era Magnitude- 4th July 09
"Super Imperialism:" The Economic Strategy of Imperial America- 3rd July 09
The Smart Grid Will Offer Exceptional Investing Opportunities- 3rd July 09
Inflationary Crack-up Boom has Commenced in the G7 Economies!- 3rd July 09
Yen Carry Trade Suggests Global Stock Markets Base Building Underway- 3rd July 09
Silver Stocks and ETF - 3rd July 09
A Message for Armchair Economists- 3rd July 09
The Keynesian System, the Economics of Illusion- 3rd July 09
U.S. Housing Market Recovery Process Outlook- 3rd July 09
Japanese Yen: Resumption of the Bull Market ? - 3rd July 09
What’s Happening in Crude Oil?- 3rd July 09
Temporary Bounce in EUR/GBP Now Possible- 3rd July 09
Silver Response to Inflation and Deflation the United States - 3rd July 09
Economic Recovery Green Shoots Doused with Herbicide- 3rd July 09
U.S. Economy Economic Recovery Achilles Heel- 3rd July 09
U.S. Unemployment Soars Whilst Fed Funnels More Cash to the Banksters- 3rd July 09
Challenges and Enormous Opportunities in Alternative Energy- 3rd July 09
Listen to Citigroup Analysts at Your Own Peril- 3rd July 09
DEFLATION Video Antidote to the Mainstream Inflation Consensus- 3rd July 09
U.S. Economy Heading for Japan of the 1990's or Argentina 2002?- 2nd July 09
Profiting From Stock Market Sector Dead Cat Bounces- 2nd July 09
Basic Financial Markets Analysis Part2- 2nd July 09
U.S. Unemployment Rate Hits 9.5%, Jobs Contract 18th Straight Month- 2nd July 09
In the Future, Interest Rates Will Soar and Consumers Will be Sore Also- 2nd July 09
Preserve Your Wealth with Precious Metals- 2nd July 09
Understanding The Dangers of Leveraged ETFs- 2nd July 09
Stock Market Seasonality What is Going to Happen with the Upcoming July 4th Holiday?- 2nd July 09
China Wants New Global Currency Which is Positive for Gold- 2nd July 09
The DJIA Stock Market Index, Chess and the Idiotic Robots - 2nd July 09
Stock Market and Dollar Upward Wedge Patterns - Signs of the times- 2nd July 09
Stock Markets Jump Out Of The Gate Before Fading- 2nd July 09
Commodities Sector Timing Trading for Gold, Oil, Silver and Natural Gas - 2nd July 09
Asia-Pacific Economies Grow As Developed Economies Wither- 2nd July 09
Million Dollar Question, What's Next for S&P 500 Stock Market Index - 2nd July 09
Will China Lead the World Out of Recession?- 2nd July 09
Make Bernie Madoff the Next Fed Chairman- 2nd July 09
U.S. Treasury Bond Market Update- 2nd July 09
U.S. Housing Market Blast From the Past- 2nd July 09
U.S. Launches Offensive Operations in Cyberspace (CYBERCOM)- 1st July 09
Rising Financial Markets See Brighter Times- 1st July 09
The Magic of the Golden Cross-Over Signal in Gold, Silver and Huey- 1st July 09
Faber & Greenspan: Shills for Fed Snake Oil on Deflation and Hyperinflation- 1st July 09
Walls to Block U.S. Deflation- 1st July 09
Banks Squeeze Credit Card Account Holders- 1st July 09
Is George Soros Long or Wrong on the Global Economic Rebound?- 1st July 09
How to Profit From Japan's Stock Market Shareholder Crisis- 1st July 09
The Case for Economic Depression, Credit Destruction - 1st July 09
Warning of Severe Economic Collapse, Mainstream Media Sustainable Recovery Hype- 1st July 09
Great Banking Confusion - 1st July 09
Stock Market S&P 500 Index Trend Update for July 2009- 1st July 09
Stock Market Ends Second Quarter With a Whimper- 1st July 09
Investment Grade Bonds Return 9.2%, Junk Returns 29%- 1st July 09
The Great Bank Robbery: How the Federal Reserve is destroying Americ- 1st July 09
Is Inflation a Fact… Or Just An Opinion? Part1- 1st July 09
Is America Broke- 1st July 09
U.S. Housing Market Deteriorates as Foreclosures Soar- 1st July 09
Lawrence Roulston: Every Reason in the World to Believe Gold Will Go Higher- 1st July 09
Is the U.S. Fed Juicing the Stock Market?- 30th June 09
Gold Breakout Above $1,000 Only a Question of Time- 30th June 09
U.S. House Prices Have Bottomed - 30th June 09
How to Improve Your FICO Credit Rating Score- 30th June 09
The Case Against Hyper Inflation- 30th June 09
Which Tek Stock is a Better Investment, Apple vs. RIMM - 30th June 09
Obama: Wrong on the Economy, Wrong on Healthcare (Part 1)- 30th June 09
What Happened to the Stock Market New Goldilocks Era?- 30th June 09
Inflationary Pressures and the MAE Faber Investment Strategy- 30th June 09
Goldman Sachs The Fourth Branch of the U.S. Government- 30th June 09
OECD Joins the UK Double Dip Recession Forecast Club- 30th June 09
Summer Sun Shines on Rising UK House Prices in June- 30th June 09
The Real Crisis is Beginning to Unfold… and It’s Not Financial Part2- 30th June 09
A 20-Year Stocks Bear Market?- 30th June 09
Objective Analysis of the Increase in the Fed's Balance Sheet - 29th June 09
Green Shoots Recovery Forex Markets Fatigue & Intermarket Setup- 29th June 09
Government Regulations to Force Agricultural Food Prices Higher- 29th June 09
Power Shortage at the U.S. Fed?- 29th June 09
Crude Oil and Natural Gas Trading- 29th June 09
Stock Market Summer Crash Forecast- 29th June 09
This Summer May Prove Hot for Gold Prices Despite the Weak Seasonal Tendencies- 29th June 09
U.S. Jump in Savings Rates Means Debt Deflation in America- 29th June 09
CNBC Admits to Manipulated Market that Continues To Be Propped Up By Government Intervention - 29th June 09
Important Week Ahead For Economic Data- 29th June 09
Where to Find Jobs in a Jobless Economic Recovery- 29th June 09
Bernanke is a Total Failure Unsuited for Role as Fed Chairman- 29th June 09
Stock Index Trading Signals Update- 29th June 09
Public Sector Pensions Deficit of £1.2 trillion Adds to Britains Debt Crisis- 29th June 09
Energy Fields in Gold and How to Trade Them- 29th June 09
GLD, SLV, USO & UNG ETF Commodity Trading Update- 29th June 09
Manipulated Financial Markets and Mainstream Media- 28th June 09
Ben Bernanke on the Great Depression- 28th June 09
Honest Money Gold & Silver Report - Market Wrap W/E 26th July- 28th June 09
What PIMCO's Bill Gross Doesn’t Want You to Know (Part 2)- 28th June 09
The Coming Economic Apocalypse- 28th June 09
SHEPHERD’S of Financial Markets ILLUSION- 28th June 09
Global Stock Market Performance and P/E Ratio Valuations- 28th June 09
Global Business Sentiment Improves Inline with Stock Market Trends- 28th June 09
The Possibility of Credit Collapse Deflation - 28th June 09
The Inflation Deflation Debate and Myth of the Kondratieff Wave- 28th June 09
China Mega-trend Stocks Stealth Bull Market Update, SSEC Up 47%- 28th June 09
Embrace Deflation - It's The Cure, Not The Problem- 27th June 09
The Stock Markets Repeating Weekly Pattern- 27th June 09
Dow Jones INDU On-Balance-Volume Stock Market Sell Signal - 27th June 09
The End of the Recession?- 27th June 09
Has the Stock Market Peaked for 2009? - 27th June 09
Stock Market Trading Range Continues...Bullish Pattern Holds Potential- 27th June 09
What PIMCO's Bill Gross Doesn’t Want You to Know (Part 1) - 27th June 09
Why Higher Gold Prices Will Come- 27th June 09
A Case For U.S. Treasury Bonds!- 27th June 09
Fed Market Manipulation, Surmounting The Main Threat To Profits And Protection- 27th June 09
How the Media Uses Buffett to Make Money- 27th June 09

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Most Popular 2009
1. Depression 2009 The Largest Train Wreck in Economic History - Darryl_R_Schoon (41,747)
2.UK Housing Market Crash and Depression Forecast 2007 to 2012 - Nadeem_Walayat (34,233)
3. Emerging Giants Russia, China, Brazil and India Looming Collapse 2009 - Martin Weiss (29,977)
4. Baby Boomers- Your Generation's Crisis Has Arrived - James Quinn (26,442)
5. Ten Major Threats Facing the U.S. Dollar in 2009 - Eric_deCarbonnel (26,023)
6. Nouriel Roubini 2009 U.S. GDP Forecasting 40% Home Mortgage Failures? - Andrew_Butter (24,711)
7. Stock Market Crash 2009: Fine Tuning DJIA Target To 5,800 - Eric_Chevrette (23,492)
8. US, UK, Eurozone Banks Face Collapse: Global Banking System Insolvent - Mike_Shedlock (21,114)
9. UK CPI Inflation, RPI Deflation Forecast 2009 - Nadeem_Walayat (20,821)
10.Gold Price Forecast 2009 - Nadeem_Walayat (20,317)
11. Stock Market Crash Red Alert: Meltdown Imminent! - Martin Weiss (19,648)
12.Fed Manipulating Market Prices, Gold, Oil and Bonds - Rob_Kirby (19,219)
13. The Great Depression has Arrived- Collapsing American Dreams - David_Vaughn (19,054)
14. Stock Market to Fall AT LEAST Another 40%! - Martin Weiss (18,963)
15. Hyperinflation Begining in China and Will Destroy the U.S. Dollar - Eric_deCarbonnel (18,651)
Most Popular 2008
1. The Great Depression 2008 - It can't happen to us....can it?”
2. The Battle for America Has Begun- Strategic Forecasts
3. UK House Prices Plunge Over the Cliff
4. US Banking System Teetering on the Brink of Collapse
5. US Economy Forecast 2008 - First Recession then Recovery
6. How Safe is My FDIC-Insured Bank Account?
7. Rising Risk of a Systemic Financial Meltdown:The 12 Steps to Financial Disaster By Nouriel Roubini
Most Popular 2007
1. US Housing Market Crash to result in the Second Great Depression
2. Operation FALCON - The USA is turning into a Police State
3. UK Housing Market Crash of 2007 - 2008 and Steps to Protect Your Wealth
4. US Housing Bubble Meltdown: "Is it too late to get out"?
5. Global Liquidity Crisis when the Credit Boom comes to an End
Most Popular 2006
1. Last Warning! Three-Pronged Collapse ... Stocks, Bonds and Real Estate
2. UK Interest Rate forecast for 2007 - Bank of England to do battle with inflation
3. UK Interest Rates Forecast to rise much higher due to rising Inflation and high Money Supply Growth
4. Emerging Markets outlook for 2007 - India, China, Russia, Eastern Europe and Brazil

News Feeds
RSS Feeds
Links

Money Forums
Certz
TradingTheCharts
Housing Market Forecasts
Local Issues


Deflation IS WINNING - Are You?

The Death of Deep Throat and the Crisis of Journalism

Politics / US Politics Dec 22, 2008 - 06:38 PM

By: STRATFOR

Politics Mark Felt died last week at the age of 95. For those who don't recognize that name, Felt was the “Deep Throat” of Watergate fame . It was Felt who provided Bob Woodward and Carl Bernstein of The Washington Post with a flow of leaks about what had happened, how it happened and where to look for further corroboration on the break-in, the cover-up, and the financing of wrongdoing in the Nixon administration. Woodward and Bernstein's exposé of Watergate has been seen as a high point of journalism, and their unwillingness to reveal Felt's identity until he revealed it himself three years ago has been seen as symbolic of the moral rectitude demanded of journalists.


In reality, the revelation of who Felt was raised serious questions about the accomplishments of Woodward and Bernstein, the actual price we all pay for journalistic ethics, and how for many years we did not know a critical dimension of the Watergate crisis. At a time when newspapers are in financial crisis and journalism is facing serious existential issues, Watergate always has been held up as a symbol of what journalism means for a democracy, revealing truths that others were unwilling to uncover and grapple with. There is truth to this vision of journalism, but there is also a deep ambiguity, all built around Felt's role. This is therefore not an excursion into ancient history, but a consideration of two things. The first is how journalists become tools of various factions in political disputes. The second is the relationship between security and intelligence organizations and governments in a Democratic society.

Watergate was about the break-in at the Democratic National Committee headquarters in Washington. The break-in was carried out by a group of former CIA operatives controlled by individuals leading back to the White House. It was never proven that then-U.S. President Richard Nixon knew of the break-in, but we find it difficult to imagine that he didn't. In any case, the issue went beyond the break-in . It went to the cover-up of the break-in and, more importantly, to the uses of money that financed the break-in and other activities. Numerous aides, including the attorney general of the United States, went to prison. Woodward and Bernstein, and their newspaper, The Washington Post, aggressively pursued the story from the summer of 1972 until Nixon's resignation. The episode has been seen as one of journalism's finest moments. It may have been, but that cannot be concluded until we consider Deep Throat more carefully.

Deep Throat Reconsidered

Mark Felt was deputy associate director of the FBI (No. 3 in bureau hierarchy) in May 1972, when longtime FBI Director J. Edgar Hoover died. Upon Hoover's death, Felt was second to Clyde Tolson, the longtime deputy and close friend to Hoover who by then was in failing health himself. Days after Hoover's death, Tolson left the bureau.

Felt expected to be named Hoover's successor, but Nixon passed him over, appointing L. Patrick Gray instead. In selecting Gray, Nixon was reaching outside the FBI for the first time in the 48 years since Hoover had taken over. But while Gray was formally acting director, the Senate never confirmed him, and as an outsider, he never really took effective control of the FBI. In a practical sense, Felt was in operational control of the FBI from the break-in at the Watergate in August 1972 until June 1973.

Nixon's motives in appointing Gray certainly involved increasing his control of the FBI, but several presidents before him had wanted this, too, including John F. Kennedy and Lyndon Johnson. Both of these presidents wanted Hoover gone for the same reason they were afraid to remove him: He knew too much. In Washington, as in every capital, knowing the weaknesses of powerful people is itself power — and Hoover made it a point to know the weaknesses of everyone. He also made it a point to be useful to the powerful, increasing his overall value and his knowledge of the vulnerabilities of the powerful.

Hoover's death achieved what Kennedy and Johnson couldn't do. Nixon had no intention of allowing the FBI to continue as a self-enclosed organization outside the control of the presidency and everyone else. Thus, the idea that Mark Felt, a man completely loyal to Hoover and his legacy, would be selected to succeed Hoover is in retrospect the most unlikely outcome imaginable.

Felt saw Gray's selection as an unwelcome politicization of the FBI (by placing it under direct presidential control), an assault on the traditions created by Hoover and an insult to his memory, and a massive personal disappointment. Felt was thus a disgruntled employee at the highest level. He was also a senior official in an organization that traditionally had protected its interests in predictable ways. (By then formally the No. 2 figure in FBI, Felt effectively controlled the agency given Gray's inexperience and outsider status.) The FBI identified its enemies, then used its vast knowledge of its enemies' wrongdoings in press leaks designed to be as devastating as possible. While carefully hiding the source of the information, it then watched the victim — who was usually guilty as sin — crumble. Felt, who himself was later convicted and pardoned for illegal wiretaps and break-ins, was not nearly as appalled by Nixon's crimes as by Nixon's decision to pass him over as head of the FBI. He merely set Hoover's playbook in motion.

Woodward and Bernstein were on the city desk of The Washington Post at the time. They were young (29 and 28), inexperienced and hungry. We do not know why Felt decided to use them as his conduit for leaks, but we would guess he sought these three characteristics — as well as a newspaper with sufficient gravitas to gain notice. Felt obviously knew the two had been assigned to a local burglary, and he decided to leak what he knew to lead them where he wanted them to go. He used his knowledge to guide, and therefore control, their investigation.

Systematic Spying on the President

And now we come to the major point. For Felt to have been able to guide and control the young reporters' investigation, he needed to know a great deal of what the White House had done, going back quite far. He could not possibly have known all this simply through his personal investigations. His knowledge covered too many people, too many operations, and too much money in too many places simply to have been the product of one of his side hobbies. The only way Felt could have the knowledge he did was if the FBI had been systematically spying on the White House, on the Committee to Re-elect the President and on all of the other elements involved in Watergate. Felt was not simply feeding information to Woodward and Bernstein; he was using the intelligence product emanating from a section of the FBI to shape The Washington Post's coverage.

Instead of passing what he knew to professional prosecutors at the Justice Department — or if he did not trust them, to the House Judiciary Committee charged with investigating presidential wrongdoing — Felt chose to leak the information to The Washington Post. He bet, or knew, that Post editor Ben Bradlee would allow Woodward and Bernstein to play the role Felt had selected for them. Woodward, Bernstein and Bradlee all knew who Deep Throat was. They worked with the operational head of the FBI to destroy Nixon, and then protected Felt and the FBI until Felt came forward.

In our view, Nixon was as guilty as sin of more things than were ever proven. Nevertheless, there is another side to this story. The FBI was carrying out espionage against the president of the United States, not for any later prosecution of Nixon for a specific crime (the spying had to have been going on well before the break-in), but to increase the FBI's control over Nixon. Woodward, Bernstein and above all, Bradlee, knew what was going on. Woodward and Bernstein might have been young and naive, but Bradlee was an old Washington hand who knew exactly who Felt was, knew the FBI playbook and understood that Felt could not have played the role he did without a focused FBI operation against the president. Bradlee knew perfectly well that Woodward and Bernstein were not breaking the story, but were having it spoon-fed to them by a master. He knew that the president of the United States, guilty or not, was being destroyed by Hoover's jilted heir.

This was enormously important news. The Washington Post decided not to report it. The story of Deep Throat was well-known, but what lurked behind the identity of Deep Throat was not. This was not a lone whistle-blower being protected by a courageous news organization; rather, it was a news organization being used by the FBI against the president, and a news organization that knew perfectly well that it was being used against the president. Protecting Deep Throat concealed not only an individual, but also the story of the FBI's role in destroying Nixon.

Again, Nixon's guilt is not in question. And the argument can be made that given John Mitchell's control of the Justice Department, Felt thought that going through channels was impossible (although the FBI was more intimidating to Mitchell than the other way around). But the fact remains that Deep Throat was the heir apparent to Hoover — a man not averse to breaking the law in covert operations — and Deep Throat clearly was drawing on broader resources in the FBI, resources that had to have been in place before Hoover's death and continued operating afterward.

Burying a Story to Get a Story

Until Felt came forward in 2005, not only were these things unknown, but The Washington Post was protecting them. Admittedly, the Post was in a difficult position. Without Felt's help, it would not have gotten the story. But the terms Felt set required that a huge piece of the story not be told. The Washington Post created a morality play about an out-of-control government brought to heel by two young, enterprising journalists and a courageous newspaper. That simply wasn't what happened. Instead, it was about the FBI using The Washington Post to leak information to destroy the president, and The Washington Post willingly serving as the conduit for that information while withholding an essential dimension of the story by concealing Deep Throat's identity.

Journalists have celebrated the Post's role in bringing down the president for a generation. Even after the revelation of Deep Throat's identity in 2005, there was no serious soul-searching on the omission from the historical record. Without understanding the role played by Felt and the FBI in bringing Nixon down, Watergate cannot be understood completely. Woodward, Bernstein and Bradlee were willingly used by Felt to destroy Nixon. The three acknowledged a secret source, but they did not reveal that the secret source was in operational control of the FBI. They did not reveal that the FBI was passing on the fruits of surveillance of the White House. They did not reveal the genesis of the fall of Nixon. They accepted the accolades while withholding an extraordinarily important fact, elevating their own role in the episode while distorting the actual dynamic of Nixon's fall.

Absent any widespread reconsideration of the Post's actions during Watergate in the three years since Felt's identity became known, the press in Washington continues to serve as a conduit for leaks of secret information. They publish this information while protecting the leakers, and therefore the leakers' motives. Rather than being a venue for the neutral reporting of events, journalism thus becomes the arena in which political power plays are executed. What appears to be enterprising journalism is in fact a symbiotic relationship between journalists and government factions. It may be the best path journalists have for acquiring secrets, but it creates a very partial record of events — especially since the origin of a leak frequently is much more important to the public than the leak itself.

The Felt experience is part of an ongoing story in which journalists' guarantees of anonymity to sources allow leakers to control the news process. Protecting Deep Throat's identity kept us from understanding the full dynamic of Watergate. We did not know that Deep Throat was running the FBI, we did not know the FBI was conducting surveillance on the White House, and we did not know that the Watergate scandal emerged not by dint of enterprising journalism, but because Felt had selected Woodward and Bernstein as his vehicle to bring Nixon down. And we did not know that the editor of The Washington Post allowed this to happen. We had a profoundly defective picture of the situation, as defective as the idea that Bob Woodward looks like Robert Redford.

Finding the truth of events containing secrets is always difficult, as we know all too well. There is no simple solution to this quandary. In intelligence, we dream of the well-placed source who will reveal important things to us. But we also are aware that the information provided is only the beginning of the story. The rest of the story involves the source's motivation, and frequently that motivation is more important than the information provided. Understanding a source's motivation is essential both to good intelligence and to journalism. In this case, keeping secret the source kept an entire — and critical — dimension of Watergate hidden for a generation. Whatever crimes Nixon committed, the FBI had spied on the president and leaked what it knew to The Washington Post in order to destroy him. The editor of The Washington Post knew that, as did Woodward and Bernstein. We do not begrudge them their prizes and accolades, but it would have been useful to know who handed them the story. In many ways, that story is as interesting as the one about all the president's men.

By George Friedman

This analysis was just a fraction of what our Members enjoy, Click Here to start your Free Membership Trial Today! If a friend forwarded this email to you, click here to join our mailing list for FREE intelligence and other special offers. Please feel free to distribute this Intelligence Report to friends or repost to your Web site linking to www.stratfor.com .

© Copyright 2008 Stratfor. All rights reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis.

STRATFOR Archive


Comments


Post Comment (Moderated)




(Note: If on Submitting you are returned to the Main Index Page then due to caching your comment has not been accepted, Press refresh and try again)

Free Credit Crisis Survival Toolkit