=========================================================================== FINS SPECIAL REPORT December 27, 1994 =========================================================================== They would have us believe ... that they are "conservatives," but in truth the ideology they espouse has virtually nothing to do with conservativism as it is properly understood and almost everything to do with avarice, jingoism, intolerance, boosterism, moral relativism, religiosity and just plain meanness. Jonathan Yardly, The Washington Post (Dec. 26, 1994, at B2) BACK TO THE FUTURE ROBBER BARON DAYS Newt's $4.5 Million Book Deal & Coming Telecosm Sieges There is excitement in the air packaged mainly in a heavy fog about Newt by the great American propaganda machine. The new U.S. Congress has not even convened but anyone who can cut through the fog already has all the signals needed to predict the likely focus of public policy for the next two years. The spin of excitement on Newt--the progressive futurist--arises from an ever shifting ferment of ideas and theories, a subjective state that can be easily falsified, and widely is researchers say [Argyris, 1982: pp. 83-85]. Newt is good at theorizing, but key party aides and staffers admit "there's never any follow through" [Fins-NC2-25]. Indeed, Newt--the man of action--is now set to take Congress under his control, governed by objective purposes of a completely different kind plainly coming into view. With the collapse of the fiscal structure of democratic liberalism now at risk, a new order of monopoly-based technological opportunism would--if "conservatives" have their way--drive the nation back to the future Robber Baron days. Even before taking office, Speaker-to-be Newt Gingrich has plowed up a $4.5 million christmas gift for himself that has the markings of a major ethical scandal. This is a book deal of clearly unprecedented contract terms that appears to trade on the author's congressional status not simply on his speculative literary worth [see box, "Newt Gingrich's Sweetheat Book Deals"]. House Democratic Whip Congressman David E. Bonoir (D-MI), observed at a press conference Dec. 22, that incoming Speaker Newt Gingrich, "hasn't even been sworn in as Speaker, and he's already begun to cash in. This is an arrogant act for a man who's about to assume one of the most powerful offices in the land." The circumstances behind Gingrich's $4.5 million christmas gift, involve his publisher, HarperCollins--which is owned by Rupert Murdock. Murdock also owns Fox T.V. Moreover, Bonoir explained, When we look at Fox T.V., we find a swarm of controversy. We find a multibillion dollar case currently pending before the FCC ... in which Mr. Murdock is being investigated for violating U.S. laws ... U.S. laws which bar foreigners from owning a controlling interest in U.S. television stations. Further investigation in press reports reveals that among the first items on the new Republican leaders agenda is legislation that will overturn the very law for which Mr. Murdock is being accused of violating. For example, Daily Variety reported less than two weeks before the $4.5 million book deal was signed ... "With the FCC hot on the trail of Fox Broadcasting over its alleged illegal foreign ownership, Republicans in Congress may be ready to rally to Rupert Murdock's rescue." Various other press reports collected by Bonoir disclose, it turns out, "that Representatives Oxley, Fields, and Bliley, and incoming Senate Commerce Committee chairman Larry Pressler have all said they will offer legislation that will lift the ban on foreign companies owning our T.V. stations." This is legislation "that will reap multibillion dollar profits for Rupert Murdock," Bonoir added. Gingrich and his spokesman have cavalierly brushed off Bonoir's attack. Moreover, while aiding the super fortune of one aspiring Robber Baron and his far-flung media empire Gingrich and his cohort of "conservative" allies are making plans for a new corporate controlled information society. Sen. Pressler has revealed that he intends to sponsor legislation that would immediately terminate the Court ordered "line of business" limitations on operations of the Regional Bell Operating Companies, and deregulate the telecommunications business. This would pave the way for a massive transfer of wealth from local ratepayers to the telephone companies and other corporate centers of power through "cream skimming" amounting to some $17 billion annually according to an MCI report (or some $340 billion over 20 years!). It would also sanction a telecommunications "monster model" combining content and conduit in order to gain monopoly rents. Meanwhile they are going to close the public library on Capitol Hill in southeast Washington, D.C., despite Gingrich's most recent idea to make "a Jewel" of Capitol Hill. He also threatened to shut down public broadcasting. Last week notice was given to terminate the whole staff of the U.S. Congress, Joint Committee on Printing, anticipating the end of the JCP [Fins-SR2-45]. For more than a century the JCP has been a vital organ managing the informa- tion role of Congress, informing members of Congress and the American people of the conduct of government, "the lifeblood of our democracy" [Fins-II-04]. Following a deadlock over information technology legislation [Fins-SR2-38], last October the National Science Foundation began turning over the National Research and Education Network to the telecommunications giants [Fins-II-26]. When privatization of the Net is completed, First Amendment protections of public discussion on the Net will end, and a reign of censorship will prevail over private bulletin boards and forums. Public and private institutions are already censoring speech in such forums [Fins-SR2-41,44; Fins-NC2-10,26]. Gingrich's "conservative" allies are even attacking the National Standards for United States History, now being formulated, because they do not portray the history of capitalism in a more favorable light, according to Project Co-Director, Larry B. Nash of the National Center for History in the Schools. Trumpeting a politically correct style George Gilder, "conservative" wizard of the "telecosm" recently glorified the Robber Barons of the 19th-century industrial era as "creators of the great industries of oil, steel and finance" [Forbes ASAP, .... 1994: p. 115]. Continuing, Gilder wrote: Radically reducing the prices of their products, such leaders as Rockefeller, Carnegie and Morgan expanded the economy to serve middle-and lower-income customers and laid the foundation for the American industrial leadership that triumphed in two world wars. But at the same time, charged with predatory pricing, collusive marketing, dumping and other competitive violations, Rockefeller, Carnegie and Morgan emerged as the monsters of monopoly who fueled the growth of government through the first 40 years of the century. Gilder now says that with the information technology driving private sector wealth and power, "there is a need for new monsters to fuel new sieges of government and regulatory growth." The new Robber Barons of the 21st-century Information Age could thereby help America realize the glory of past futures. -------------------------------------------------------------------------- NEWT GINGRICH'S SWEETHEART BOOK DEALS (As described by Congressman David E. Bonoir Dec. 22, 1994) 1977-78 Nine political supporters who call themselves "Nomanhan Partners" raise $13,000 to send Gingrich (and his family) to Europe to work on a novel. Most of these contributors have business interests in Georgia. The novel was never published. 1984 Gingrich solicits $105,000 from a group of 21 political supporters to promote his non-fiction book, "Windows of Opportunity." Gingrich later admitted that he used his congressional staff for copying and proofreading the book, which earned him $10,000 in 1984. 1994 Gingrich receives a $15,000 advance to write a sc-fi novel entitled "1945," which is being co-written with novelist William Forstchen and an unnamed technical writer. The draft of Gingrich's novel contains the often-quoted passage about "the panting sex kitten" and "Diana the Huntress." 1994 Times Books prints 200,000 paperback copies of the Republican "Contract with America." A note in the book claims that all royalties from the sale of the Republican Contract will be used for "nonpolitical nonpartisan purposes." 1994 Rupert Murdock's publishing company reportedly agrees to give Gingrich a $4 Million advance for two non-fiction books. Murdock has a significant interest in a variety of regulatory matters before the federal government. =========================================================================== BECOME A MEMBER OF FINS--COLLABORATE IN ADVANCING THE GENIUS OF CYBERSPACE --------------------------------------------------------------------------- NEW Personal Subscription: $2.95 a year. 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