Obama Pays Back Political Favor

Wednesday, June 16, 2010
By Scott Wheeler

President Obama has now made the United States an official “state sponsor of terrorism” a designation, applied to other countries, would mean no aid or trade with the US. It is unclear how Obama’s actions will affect our ability to trade with ourselves as a nation.

On June 9, President Obama announced a 400 million dollar aid package to the West Bank and Gaza, which are currently two separate entities; the West Bank under the control of Mahmoud Abbas, a moderate by radical Islamic standards, Gaza is run by the democratically elected Islamic Resistance Movement known otherwise as the terrorist group Hamas. Obama was trying to be sneaky in announcing this “aid package” to Gaza with Abbas present thus conflating the moderate with the radical terrorist group Hamas, a clear attempt to avoid scrutiny of handing over American’s money directly to a terrorist organization that has murdered American citizens.

Whatever else you can say about Obama, at least he never forgets his friends.  Thanks to the investigative work of Pamela Geller of Atlas Shrugs we know that in 2007 Obama’s campaign received over 30 thousand dollars in illegal donations from Hamas controlled Gaza.
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The Corrupt Party and the Stupid Party

Thursday, April 29, 2010
By Scott Wheeler

As seen in The Daily Caller
The Daily Caller

Guess who the stupid party is? For many years I have heard this headline phrase in different incarnations and it has never been truer than it is today. The Democrats are laying down a pair of deuces and telling the Republicans that it is a royal flush. What is so silly is that Republicans fold with a full house after the Democrats play the deuces. John Stuart Mill may have had something. Watching the farcical debate over Obama’s so called financial reform bill one could be easily misled into believing that Republicans have taken lots of money from corrupt Wall Street bankers and are allowing them to write the reform bill to favor Wall Street. Democrats said as much to Politico on Wednesday.

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Lies, Damned Lies, and Healthcare

Thursday, March 25, 2010
By Scott Wheeler

President Obama has finally passed his massive healthcare bill, although the staggering cost to the American people has yet to be determined; the attendant increase in taxes and misery, as well as a corresponding decline in quality and standards will most likely remain unquantifiable for many years to come. Several Republican legislators dutifully reported disturbing elements of the healthcare bill, even as the reigning Democrats in the House of Representatives played bait and switch with the final bill’s contents. But no one confronted the President about his bold lies concerning the current state of health insurance in the United States. Those lies were legion.

During his year – long pitch for his so – called “health insurance reform, ” President Obama repeatedly exaggerated problems, obfuscated facts, and manufactured lies about America’s insurance companies. It was all part of a conscious and calculated effort to sow fear among the populace; if not exactly the “politics as usual” that he derides at every opportunity, then certainly something even far more sinister.

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Obama Stimulating a Marxist Revolution Using Taxpayer Funds

Monday, March 8, 2010
By: Scott Wheeler

A Marxist group that has demanded the “destruction” of the U.S. and issued a call “to bring this Government down,” is the recipient of stimulus funds from the Obama American Recovery and Reinvestment Act of 2009.  This same group, The Brecht Forum, has also called for the complete takeover of insurance companies and farms in America.

The controversial stimulus bill, as it is better known, provided funds for the New York State Council on the Arts (NYSCA), which promptly granted New York City based The Brecht Forum $5,000 in 2009 and $9,000 in 2010.  The NYSCA had previously announced in 2008 that due to state budget cuts it would no longer be able to fund 573 organizations that it had previously funded.  One of the groups on the list to be slashed was The Brecht Forum.  After securing funds from the stimulus bill in the amount of $399,000, The Brecht Forum was once again funded by NYSCA.
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Tea Party Movement vs. the Elites

Thursday, February 18, 2010
By Scott Wheeler

The most recent media attacks on the Tea Party movement have some of their populist defenders nervous.  Bill O’Reilly on his February 16 broadcast, following the publication of a New York Times article, asked Sarah Palin this question:

“Do you think the birther people should have a place at the Tea Party table…do you see the danger if that becomes the headline…?”

The danger of the “birther” question is irrelevant because the elitist Times will always find something that they can use to try and discredit anyone who isn’t liberal.  And if there is a crowd of a thousand tea party protesters the media will canvas all of them until they find one willing to say something objectionable. The Times has even done that unfairly to O’Reilly in the past.  The reality is that when the Times or the rest of the elite media attacks regular Americans, Tea Party or otherwise, it doesn’t discredit the people – it further marginalizes the liberal media.

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A Tale of Two Shootings

By Scott Wheeler

Obama’s remarks upon hearing that abortionist George Tiller was shot— “I am shocked and outraged” but upon receiving the news that 12 unarmed soldiers were gunned down at Ft. Hood Army Post, Obama said “I would caution against jumping to conclusions” about the motives of the gunman.

Obama’s Homeland Security Secretary Janet Napolitano says her Department is now working to deflect any backlash against American Muslims following Thursday’s rampage by a Muslim soldier. Can we now officially question the loyalty of the Obama administration? A Muslim soldier murders a dozen of his non-Muslim fellow soldiers and the Obama administration vows to protect Muslims?
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Gorelick Rejected Attempt to Revise ‘Wall’ Memo

One of America’s most prominent federal prosecutors sought changes to the 1995 “wall” memo authored by then-Deputy Attorney General Jamie Gorelick, but most of the concerns expressed by U.S. Attorney Mary Jo White over the barriers erected between criminal and counter-intelligence investigations were rejected.

Scott Wheeler for CNSNews.com

Gorelick’s “wall” memo was the subject of an April 26 CNSNews.com report, which quoted four sources as saying the memo erected barriers to intelligence-sharing between the FBI and intelligence agencies, and impeded the investigation of alleged Chinese espionage and illegal campaign donations to then-President Bill Clinton’s 1996 re-election campaign.

According to documents obtained by CNSNews.com, White, who was the U.S. attorney for the Southern District of New York, spelled out her concerns shortly after Gorelick wrote the memo establishing the new guidelines for federal investigations.

The reply that followed came from Michael Vatis, deputy director of the Executive Office of National Security, with Gorelick signing off on Vatis’ language. Read more »

Gorelick’s Memo Impeded Probe of Clinton’s China Scandal

A senior U.S. government official has told CNSNews.com that the 1995 memo written by former Assistant Attorney General Jamie Gorelick, an issue in the 9/11 commission’s investigation of U.S. intelligence failures, also created “a roadblock” to the probe of the 1996 Clinton re-election campaign’s fund-raising scandal.

Scott Wheeler for CNSNews.com

The memo’s relevance in the investigation of the fund-raising scandal has received scant attention in the media, but four sources, including the government official, have explained and corroborated details of the connection for CNSNews.com.

CNSNews.com’s sources question whether the guidelines purportedly put in place by Gorelick in 1995 for Justice Department investigations were actually intended to shield President Bill Clinton, Vice President Al Gore and top Democrat campaign fund raisers from the subsequent congressional investigations of the illegal money-raising activities. Read more »

Clinton gave China ‘false certification’ on nukes

Analyst threatened with firing for assessment opposing tech transfers

Scott L. Wheeler © 2003 News World Communications Inc.

Senior defense-intelligence analysts tell Insight that the Clinton administration falsely certified the People’s Republic of China, or PRC, as a nuclear nonproliferator despite overwhelming evidence to the contrary.

Clinton officials went so far, sources say, as threatening to fire a senior defense analyst unless he changed his analysis, which was based on the overwhelming preponderance of all available intelligence sources that Beijing was proliferating nuclear technology and materials to rogue nations.

This magazine has obtained a copy of an analysis written by Jonathan Fox, arms-control specialist for the Defense Special Weapons Agency, dated Oct. 23, 1997, which states: “This assessment concludes that the proposed arrangement presents real and substantial risk to the common defense and security of both the United States and allied countries.” Read more »

How Beijing gets U.S. defense plants

Insiders and internal documents confirm that People’s Republic of China developed a long-range espionage plan to acquire U.S. rare-earth-magnet technology

Scott Wheeler’s Op-Ed in Insight on the News

Outraged U.S. technology experts and documents obtained by INSIGHT indicate that the acquisition and subsequent transfer of high-tech rare-earth-magnet equipment and technology to the People’s Republic of China (PRC) is the result of a long-range espionage plan by the late “Paramount Leader” Deng Xiaoping directly involving two of Deng’s sons-in-law.

The revelations come as Magnequench Inc., a company partially owned by the San Huan New Materials and HiTech Co.–itself at least partially owned by the PRC government–prepares to shut down a factory in Valparaiso, Ind., that produces critical parts for U.S. precision-guided weapons. The company then plans to ship the machine tools to China. INSIGHT has learned from technology experts, plant insiders, internal PRC documents and historical records that the PRC had targeted the U.S. technological advantage in exotic materials and manufacturing and developed a long-term plan to acquire it in the United States and export a crucial U.S. military advantage to the communist-controlled mainland. Read more »

US Missile Technology Plant Moved To China

An important U.S. high-tech manufacturer is shutting down its American operations, laying off hundreds of workers and moving sophisticated equipment now being used to make critical parts for smart bombs to the People’s Republic of China [PRC], Insight has learned.

by Scott Wheeler, Insight Magazine

Indianapolis-based Magnequench Inc. has not yet publically announced the closing of its Valparaiso, Ind., factory, but Insight has confirmed that the company will shut down this year and relocate at least some of its high-tech machine tools to Tianjin, China. Word of the shutdown comes as the company is producing critical parts for the U.S. Joint Direct Attack Munition [JDAM] project, more widely known as smart bombs, raising heavy security issues related to the transfer of military technology to the PRC. The factory uses rare earths to produce sintered neodymium-iron-boron permanent magnets that have many industrial applications but are essential to the servos critical to precision-guided munitions. According to documents obtained by Insight, Magnequench UG currently is producing thousands of the rare-earth magnets for “SL Montevideo Tech,” a Minnesota-based manufacturer of servos. That company confirmed to Insight that it holds a Department of Defense [DoD] contract to produce the high-tech motors for the precision-guided JDAM.

The Valparaiso-based manufacturer, originally known as UGIMAG, became Magnequench UG when it was acquired by Magnequench Inc. in August 2000. Magnequench Inc. had been purchased in 1995 by a consortium that included the China-based San Huan New Materials and Hi-Tech Co., created and at least partially owned by the Chinese Academy of Sciences in Beijing. Magnequench was a spin-off company of General Motors Corp. [GM], and at the time of the buyout was headquartered in Anderson, Ind.

Clyde South was a negotiator for the United Auto Workers Local 662 representing the workers at Magnequench when the consortium began negotiating to buy the company in 1995. In an interview with Insight, South says that worker concern about PRC influence over the consortium led to an “agreement with GM” that the plant would remain in Anderson for at least 10 years According to South, the buyers made the same agreement with the union, but since he had doubts about their intentions he took his concerns to Washington. Warnings fell on deaf ears. In August 2001, the sixth year of the 10-year agreement, South’s distrust was validated when the consortium’s managers “told us they intend to close the plant” and eliminate roughly 400 jobs.

The Magnequench plant in Anderson transforms neodymium, iron and boron into powder using a unique patented process that produces the exotic rare-earth magnets. Following the buyout in 1995, the production line at Anderson was “duplicated in China” at a facility built by the PRC company. According to South, after the company “made sure that it worked, they shut down” the Anderson facility. South says he suspects the buyout was about getting the technology, adding, “I believe the Chinese entity wanted to shut the plant down from the beginning. They are rapidly pursuing this technology.”

Meanwhile, says the union negotiator, “They told us, ‘We are going bankrupt,'” and therefore had to close the Anderson facility. This was not long after the consortium purchased UGIMAG in Valparaiso, according to critics, telling the workers there that they planned to keep the factory running. But, according to some sources, Magnequench Inc. had “refused to buy the buildings or the property” on which the factory was located, “suggesting a temporary arrangement.” South said of his experience, “You just couldn’t believe anything they told you.”

The plant workers at Magnequench UG are organized by the United Steelworkers of America. Insight contacted union official Michael O’Brien, who confirmed negotiations with Magnequench UG regarding the company’s future, but declined to comment further.

The transfer to Communist China of technologies that make rare-earth permanent magnets also is a matter of concern for defense and national-security experts, says Peter Leitner, a senior strategic-trade adviser to the DoD. Leitner says rare-earth magnets “lie at the heart of many of our most advanced weapons systems, particularly rockets, missiles and precision-guided weapons such as smart bombs and cruise missiles.” He tells Insight why the PRC’s need for this type of technology is urgent, noting that “China has an ongoing high-priority effort to produce a long-range cruise missile. They are trying to replicate the capabilities the U.S. has, such as with the Tomahawk [cruise missile], as part of their power projection, and expanding their ability to strike targets at long distances.”

Since the 1995 buyout of Magnequench by the consortium of two Chinese companies and a cooperating U.S. firm, it has in turn bought at least two more high-tech companies that deal in rare-earth magnets. In addition to UGIMAG in 2000, which became Magnequench UG, it has bought

GA Powders, which was a spin-off company of the Idaho National Engineering and Environmental Laboratory, a U.S. national lab. An insider tells Insight that “Magnequench UG is the last American company making these rare-earth magnets. When it moves to China, there are none left.” Leitner sees a pattern. He says the Chinese “have targeted the manufacturing process through a variety of suspicious business activities and have been furiously transferring the manufacturing technology to China, thereby becoming the only source. They are purchasing U.S. companies, shutting them down and transferring them to China.”

According to Leitner, “The Chinese are clearly trying to monopolize the world supply of rare-earth materials such as neodymium that are essential to the production of the militarily critical magnets that

enable precise guidance and control of our most advanced weapons and aircraft.” He warns that risks are involved in allowing this kind of technology transfer, adding: “By controlling the access to the magnets and the raw materials they are composed of, U.S. industry in general and the auto industry in particular can be held hostage to PRC blackmail and extortion in an effort to manipulate our foreign and military policy. This highly concentrated control – one country, one government – will be the sole source of something critical to the U.S. military and industrial base.”

Intelligence analysts emphasize that the PRC routinely combines espionage operations with business deals. Internal PRC documents refer to this as advancing “economy and i national-defense construction.” A 1999 congressional report on PRC espionage states that the Beijing

government sees “providing civilian cover for military-industrial companies to acquire dual-use technology through purchase or joint-venture business dealings” as a responsibility of the government. The report lists “rare-earth metals … for military aircraft and other weapons” as one of the primary targets of the PRC.

So how could this be happening? Because of the PRC’s involvement in the 1995 buyout of Magnequench, the deal required the approval of the Committee on Foreign Investments in the United States [CFIUS], which is chaired by the secretary of the Treasury. CFIUS approval of the buyout predated a series of reports by the FBI and congressional committees warning of massive PRC espionage efforts against U.S. businesses and military technology. In one case, which involved the then-struggling McDonnell Douglas Corp., the China National Aero-Technology Import and

Export Corp. [CATIC] targeted the U.S. aircraft giant’s plant at Columbus, Ohio, according to government sources. Plant 85, as it was known, is where the bodies of the U.S. Air Force C-17 strategic transport plane and the MX intercontinental ballistic missile were made.

In 1994, CATIC made an offer to buy Plant 85 and relocate it to what was to be a civilian aircraft-production facility, according to government documents. The request for an export license for the plant’s machine tools touched off a bitter feud among export-control officials at the DoD that still lingers nine years later. Those opposed to the sale argued that once the Plant 85 machine tools were exported to the PRC, they would be used to produce missiles for China’s People’s Liberation Army [PLA]. Those who favored the sale pointed to the ancillary deal the PRC dangled in front of McDonnell Douglas to purchase more than $1 billion worth of aircraft.

In the end, those in favor of the sale of Plant 85 won out and those opposed almost immediately were vindicated. According to government documents, within months of exporting the plant to China, U.S. officials learned that the sensitive machine tools had been diverted for use in a Chinese factory that makes the Silkworm missile that Beijing has provided to rogue nations. United Auto Workers union official South tells Insight he sees similarities between the cases of McDonnell Douglas and Magnequench, noting that immediately after the consortium’s first Magnequench acquisition, “They transferred the patented jet-casting process to China.”

In an interview with Insight, Magnequench Inc. President Archibald Cox Jr. initially denied but later confirmed having a contract for the production of rare-earth magnets for the JDAM. When asked about the shutdown of the Anderson plant last year, he acknowledged having a 10-year agreement with GM and the steelworkers, but insists that despite the early termination of that agreement the workers “got a fair deal” when the company bought out their contract. Cox tells Insight the closing of the Valparaiso plant was a matter of economics, and denies that the company is moving equipment to China.

“We are going to sell everything in the plant i unless we can use it somewhere else,” says Cox. Insight has obtained evidence that “somewhere else” may mean China. A copy of an internal memo from the Valparaiso plant seems to contradict the “sell or auction” option. A brief memo, dated Jan. 23, states in part, “In the near future you will be seeing people in the plant performing measurements and a variety of estimating and planning activities in preparation for equipment sale and/or removal … to give the company an idea of cost and logistics.” According to eyewitness accounts, all such “people have been from China.” Cox also acknowledges that Magnequench Inc. did not purchase the buildings or land where the Valparaiso plant is located, but refuses to characterize reluctance on the company’s part: “It just wasn’t part of the deal,” Cox says.

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Missile technology sent to China

The move to China of a U.S. manufacturer of military parts is causing fears that Beijing is out to corner the market in rare-earth magnets—critical components of smart bombs

Scott Wheeler’s Op-Ed in Insight on the News

An important U.S. high-tech manufacturer is shutting down its American operations, laying off hundreds of workers and moving sophisticated equipment now being used to make critical parts for smart bombs to the People’s Republic of China (PRC), INSIGHT has learned.

Indianapolis-based Magnequench Inc. has not yet publically announced the closing of its Valparaiso, Ind., factory, but INSIGHT has confirmed that the company will shut down this year and relocate at least some of its high-tech machine tools to Tianjin, China. Word of the shutdown comes as the company is producing critical parts for the U.S. Joint Direct Attack Munition (JDAM) project, more widely known as smart bombs, raising heavy security issues related to the transfer of military technology to the PRC. The factory uses rare earths to produce sintered neodymium-iron-boron permanent magnets that have many industrial applications but are essential to the servos critical to precision-guided munitions. According to documents obtained by INSIGHT, Magnequench UG currently is producing thousands of the rare-earth magnets for “SL Montevideo Tech,” a Minnesota-based manufacturer of servos. That company confirmed to INSIGHT that it holds a Department of Defense (DoD) contract to produce the high-tech motors for the precision-guided JDAM. Read more »

China makes spying a company policy

By purchasing high-tech firms in the United States, China gains access to advanced weapons technology which then is duplicated on Chinese production lines

Scott Wheeler’s Op-Ed in Insight on the News

A U.S. high-tech firm bought in 1995 with Clinton-administration approval by a consortium that included two Chinese companies is proving to be a threat to U.S. national security, according to senior government analysts. The Anderson, Ind., based Magnequench Inc. was bought by the San Huan New Materials and Hi-Tech Co. of the People’s Republic of China (PRC), which was started and still is partially owned by the Chinese Academy of Sciences in Beijing. It teamed in this venture with a Hong Kong investment house and a U.S. firm to form Magnequench International, which since has bought out at least one U.S. national laboratory spin-off company and has been project partner with another lab.

“The company is little more than a front for the PRC,” a senior government analyst tells INSIGHT. The official insists that the PRC owners of Magnequench are using its status as a U.S. company to obtain “state-of-the-art and emerging technology and transfer it to the PRC…. It’s just another form of espionage.” Read more »

PRC Espionage Leads to ‘Terf’ War

Investigators say China placed students in American universities to gain secret information about an exotic material with valuable industrial and military uses

by Scott Wheeler, Insight Magazine — October 29, 2002

The U.S. Navy spent millions of dollars to develop Terfenol-D in the early 1980s, and intelligence experts estimate that the People’s Republic of China (PRC) has devoted extensive resources to try to steal it. INSIGHT has learned that these PRC efforts have paid off.

The spy target is an exotic material made up of two types of rare-earth metals called lanthanides, terbium and dysprosium, plus iron (FE). The NOL stands for Naval Ordnance Laboratory. Hence the name Terfenol-D.

Those who have worked with this exotic material call it almost magical. “It changes shape when you apply a magnetic field to it,” says Jonathan Snodgrass, the chief scientist at Etrema Products Inc. of Ames, Iowa. Until recently, Etrema was the only U.S. company authorized by the Navy to work with Terfenol-D, following its development at the Department of Energy’s Ames Laboratory, which is managed by Iowa State University. Scientists and engineers say Terfenol-D is a technology of the future with many commercial and industrial uses. But the Navy has its own uses for Terfenol-D, including high-tech sonar devices in U.S. submarines to detect and track enemy vessels. That is why the Department of Defense (DoD) jealously guards the process that produces this substance. Read more »