Stop the Insanity vs. GCM's Perpetual War

Syria is but the latest place for U.S. global tampering on behalf of the moneyed class.  An interesting exchange occurred between Columbia University Professor Jeffrey Sachs and Admiral James Stavridis, a Dean at Tufts University.  Sachs was remarkably frank, open and honest about President Obama's serial defecating on his Nobel Peace Prize.  Admiral Stavridis ignored Sach's evidence based observations in favor of perpetual war for economic gain.

Before Syria there was Libya, a Western based intervention run by Stavridis.  

Stavridis retired in 2013 and later received a number of corporate board appointments.  SEC filings show his publicly traded board slots.

Six of the seven board seats are related to investment firm Neuberger Berman, once part of Lehman Brothers.  Lehman's failure nearly shattered the financial globe in fall 2008.  President George W. Bush chose not to save Lehman which employed brother Jeb and cousin George Walker in the very same Neuberger Berman unit.    

Private equity firm Bain Capital and Hellman & Friedman bought Neuberger Berman from an imploded Lehman.  Neuberger Berman recently purchased a stake of private equity underwriter (PEU) Vector Capital    

Institutional Investor reported:

Perhaps the most surprising success at Neuberger is the globalization effort. Under Lehman the firm had $4.15 billion in assets from non-U.S. institutional clients. At the end of September 2013, it had $47.6 billion.

Admiral Stavridis joined the various Neuberger boards on 12-16-2015, after the firm had grown its international investment over ten times.

Also, Neuberger filings show three private company board appointments for Stavridis since his military service ended.  They include BMC Software Federal, Vertical Knowledge and Utilidata.
 

Private equity underwriters Bain Capital and Golden Gate Capital bought BMC in 2013 for $6.9 billion.  Rumors have them flipping BMC for over $10 billion in an IPO.

Bain and its PEU partners invested $1.25 billion in equity for the buyout.  They pulled $750 million from BMC in April 2014 in a classic PEU debt for dividend move.   That took leverage up to 8x, according to Moody's.  As a board member Stavridis would know when Bain et al hit the free money point and how much they would make in a successful IPO.

Vertical Knowledge's Glassdoor site indicates the firm is also PEU backed:

Vertical Knowledge is a leading provider of open source data, information services and analytics. The company operates in the national defense, intelligence and financial services verticals and is backed by Providence Equity and Marker, LLC.

Open source data, analytics...has a Cambridge Analytica sound.

Last up for Stavridis is Utilidata.

Utilidata is about making the grid smarter and cyber secure.  Syria will need a new power grid, at least in parts of the country.  PEHubNetwork reported:

Utilidata’s backers include Formation 8 Partners, Saudi Aramco Energy Ventures, Braemar Energy Ventures and American Electric Power

The greed and leverage boys sponsor all three of Stavridis' private board seats.  Greed is insatiable and that's who the bombing Admiral serves.  

It's interesting how problems that rise from war seem to require more war.  Al Qaeda arose from American tampering in Afghanistan to counter Russian influence.  That gave us 9-11 and a series of wars, Afghanistan, Iraq, Libya, Yemen, and Syria. 

President Obama sought regime change in Syria by assisting rebels via operation Timber Sycamore:

Classified October 2012 Defense Intelligence Agency report revealed that the shipment in late August 2012 had included 500 sniper rifles, 100 RPG (rocket propelled grenade launchers) along with 300 RPG rounds and 400 howitzers. Each arms shipment encompassed as many as ten shipping containers, it reported, each of which held about 48,000 pounds of cargo. That suggests a total payload of up to 250 tons of weapons per shipment. Even if the CIA had organized only one shipment per month, the arms shipments would have totaled 2,750 tons of arms bound ultimately for Syria from October 2011 through August 2012. More likely it was a multiple of that figure.

It;s not clear if Admiral Stavridis was aware of this strategy but one might expect the NATO commander to be informed.

Libya had a population of over 6.1 million people in 2010.  Stavridis said the intervention was on behalf of "hundreds of thousands of civilians rebelling against an oppressive regime."  This ignores the West's catering to Gadhafi, beginning in 2006.  Senator John McCain tweeted from the Gadhafi ranch in 2009.  McCain wrote "interesting meeting with interesting man."  Politicians can flip on a dime.

A different Admiral shared NATO's strategy in the Libyan intervention:

At the same time, we are conducting the mission over Libya with our Arab partners. So, this is a tremendous engagement, but it also demonstrates the potential of having a network of relationships with global actors. This is what the Strategic Concept calls “global partnerships,” because global partnerships are something which help you prevent situations like Libya from happening, or when they happen, to intervene on behalf of the people, in the case of Libya together with our partners. So it is a key, I would say, the most important, probably the most innovative element of the new Strategic Concept, and it is a political concept, not a military one, the military helps and the military engages, but politics lead. 

A Libyan poll from October 2017 showed:

"43 percent of Libyans, or at least those in the west of the country, think the 2011 revolution was due to outside influence, compared to 46 percent saying it was a wholly Libyan revolt.'

'A massive 91 percent say that all governments since the revolution have failed to deliver to aims of the revolution and 92 percent say that corruption has increased since the overthrow of the Qaddafi regime."

Jeffrey Sachs likely knew the man he briefly debated on MSNBC foisted Western violence on behalf of America's government corporate monstrosity (GCM).  That's my term for Einsenhower's Military-Industrial Complex on trillions ($) in federal steroids.

MSNBC's reporters looked like they had no clue or are loyal servants to the GCM.  Comedian Jimmy Dore wondered how Admiral Stavridis profits from dropping yet more bombs.  This post sheds some light on his question.

Admiral Stavridis serves his economic. political masters by pushing violence.

Carlyle Group Admiral on CNN's GPS

I noticed a Carlyle Group executive on Sunday morning news program Fareed Zacharia's GPS.  Zacharia spoke with Admiral James Stavridis about Russia's possible invasion of Ukraine.  There was no mention of Stavidris' Carlyle connections or feedback from the people of Afghanistan, Libya or Syria on the success of the Admiral's actions in their countries.

As no one declares conflicts of interest these days I researched ways Stavridis is currently profiting from America's government-corporate monstrosity. 

Stavridis is a private equity underwriter (PEU) for The Carlyle Group, Whitefield Capital and DC Capital (Board of Advisors).  

DC Capital appears to be the Red Team's PEU.  It is similar to the Blue Team's Pine Island Capital which produced President Biden's top two cabinet members, Anthony Blinken and General Lloyd Austin.

Admiral Stavridis is also a director for a number of Neuberger Berman investment funds.  Neuberger's website states the company "manages a range of equity, fixed income, private equity and hedge fund strategies."

Stavridis sits on the board of Fortinet and American Water Works.  Fortinet pays him $55,000 a year and gave him $245,000 in restricted stock.   American Water Works paid the Admiral nearly $240,000 in director compensation in 2020.  He currently holds 3.000 shares of American Water Works stock, valued at over $500,000.  His board bio revealed more directorships.

McLarty is another familiar Carlyle Group name.  T.F. "Mac" McLarty was President Bill Clinton's Chief of Staff.  McLarty Associates is a PEU affiliate of Madison Dearborn Partners and will soon be part-owned by HPS Investment Partners, another PEU..

Michael Baker International is an affiliate of DC Capital.  It is part of DC Capital's first fund.

White Field Capital's website described the firm as "a U.S. based private equity firm with offices in Charlotte and Puerto Rico. We are focused on investing and partnering with growing businesses valued at up to $20 million."

Vigor/MHI Shipyard is a Carlyle investment alongside Stellex Capital.  They combined assets in 2019.

Private equity companies The Carlyle Group and Stellex Capital Management have agreed to merge two American shipyard firms, Oregon-based Vigor Industrial and Norfolk-based MHI Holdings.

Might there be a naval component to any conflict between Ukraine and Russia?  What if the U.S. enters the fray?  The United States has a naval presence in the Black Sea.

Fareed has a history of going easy on Carlyle Group executives and missed Bono's PEU connections.  

Stavridis clearly qualifies as a greed and leverage boy, one with considerable political influence and a track record of widespread human misery in at least three countries.  Will it become four?

Update 12-7-21:  The Admiral was back on CNN tonight.  

Update 12-26-21:  Tom's Dispatch lamented the litany of PEU generals like KKR's David Petraeus but missed Lloyd Austin's PEU pedigree in their piece.  No mention of Carlyle's James Stavridis.

Update 1-5-23:  Carlyle is ready to cash in on Titan-Vigor-MHI for roughly $2 billion. 

Update 2-22-23:  Carlyle may be shopping its stake in Black Sea:

...plans by BSOG's investor Carlyle to potentially sell the company were "normal" for an equity firm after it has finished building the project.

It doesn't want to pay increased energy taxes like any good PEU.  

Update 4-3-23:  Responsible Statecraft reported:

A prominent regular columnist for Bloomberg Opinion, Ret. Adm. James Stavridis, has published multiple columns over the past year urging greater U.S. investments in cybersecurity and cyber-defenses while failing to disclose to readers potential conflicts of interest due to work in the defense industry. 

Declaring financial conflicts of interest is so passe in our PEU world....

Update 6-29-23:  Carlyle sold Titan-Vigor-MHI to an affiliate of Lone Star Funds for an undisclosed amount.  A 6-15-23 press release on the closing is on Vigor's website but not on MHI's.

Carlyle's Geopolitical Expert on CNN

CNN's Micheal Smerconish interviewed a Carlyle Group executive this morning.  Admiral James Stavridis is charged with finding profitable opportunities in the midst of global crises for Carlyle, a politically connected private equity underwriter (PEU).

Admiral James Stavridis is Vice Chair, Global Affairs and Managing Director, focused on advising Carlyle’s executive team and investment professionals on geopolitical and national security issues.

Neither Smerconish or Stavridis disclosed his Carlyle Group role.  Oddly, the CNN host went on to Russian oligarchs and their use of offshore companies to hide assets.  Carlyle SEC filings showed over 150 companies registered in The Cayman Islands.  Billionaire PEUs are known for their ability to make U.S. government policy while the voice of the common person is widely ignored.

Carlyle's crisis creds are well established.  With knowledge from its China presence the PEU built a solid COVID-19 pandemic portfolio.  Their first buy of a blood products software provider happened in February 2020.  Carlyle struck a deal to flip their substantial holdings in lab test provider Ortho Clinical Diagnostics to Quidel.  

Rest assurred Admiral Stavridis is working hard to make the greed and leverage boys wealthier in the midst of global upheaval.  That was not mentioned, much less explored.  Some things are purposely off topic. The Admiral is also on the board of directors of cybersecurity firm Fortinet.

How might crash helmets and biker's boots help citizens stuck in an urban invasion? 

Update 3-13-22:  The Admiral was on NBC's Meet the Press this morning.  No mention of Carlyle.

Update 4-3-23:  Responsible Statecraft reported:

A prominent regular columnist for Bloomberg Opinion, Ret. Adm. James Stavridis, has published multiple columns over the past year urging greater U.S. investments in cybersecurity and cyber-defenses while failing to disclose to readers potential conflicts of interest due to work in the defense industry. 

Declaring financial conflicts of interest is so passe in our PEU world....

Carlyle Group Strategist on Colbert Show

Carlyle Group Managing Director and Vice Chair, Global Affairs James Stavridis was on The Colbert Show last night. 

Admiral James Stavridis, USN, Ret, is Vice Chair, Global Affairs and a Managing Director with a focus on international activities and global strategy for Carlyle. He is based in Washington DC.

Carlyle cut its teeth profiting from weapons of war.   Those profits grew at least three billionaires with outsized influence on U.S. government policy.

Earlier in the show Stephen Colbert remarked about billionaires in his "Space News" segment. 

Colbert made no mention of Admiral Stavridis position with The Carlyle Group, a politically connected private equity underwriter.  It may have been enlightening to hear how Carlyle plans to make massive profits from the significant dislocations occurring throughout the globe.  Stephen had Carlyle's global strategist in a chair for over nine minutes and the world is mostly unaware.  

Update 4-3-23:  Responsible Statecraft reported:

A prominent regular columnist for Bloomberg Opinion, Ret. Adm. James Stavridis, has published multiple columns over the past year urging greater U.S. investments in cybersecurity and cyber-defenses while failing to disclose to readers potential conflicts of interest due to work in the defense industry. 

Declaring financial conflicts of interest is so passe in our PEU world....

Admirals & Generals Disappear from Sunday AM News Shows

It used to be fun identifying the private equity ties to retired Generals and Admirals that appeared on the Sunday morning news shows.  General David Petraeus (KKR) and Admiral James Stavridis (Carlyle) were two of the more popular guests.  

At least three factors have contributed to their disappearance.  First, Trump's dumbing down of the Pentagon means smarter, more experienced military leaders are a direct threat to the President's mendacious, venal and banal military undertakings.  

Second, private equity underwriters (PEU) know not to endanger any economic expansion talk pushed by Trump II's underlings.  If a pump wave is coming, that could be a PEU dump opportunity.

Third, Trump's lawsuit happy stance with network news means they have to spend time actually stating his nonsense positions and book his goons.  

The Sunday morning news shows used to be a window into "politicians Red & Blue love PEU (and their new TechGod/CryptBro brethren)." No more.  We just hear from politicians Red & Blue.  I get enough of that during the week.  

Trump II continues lowering the bar on nearly everything.

Update 12-26-25:  Carlyle's James Stavridis wrote a column on Hegseth's upcoming changes to the military's "constitution.

Update 1-8-26:  Carlyle's James Stavridis was on CNN Saturday morning answering questions about Trump II's snatch and grab of Venezuelan President Maduro.  Stavridis corrected Trump's "large operation" to a precision military intervention but otherwise was effusive in his praise over its execution.

Trump II's Set Rules

Carlyle Group CEO Harvey Schwartz spoke at Semafor's World Economic Summit in Washington, D.C. and noted business leaders need to understand Trump's policy objectives and methods to achieve those policy wins.  Schwartz is looking for consistent/concrete rules, something Trump never gives or does. 

For Trump II, the digital Caligula it's all image, all the time.  He prefers the stick over the carrot and can pull out a Savage Whim with virtually no notice.  If he sees something desirable in your direction prepare to be fleeced.  It's now his.

How can you build a good government around these predilections?  You can't.  Trump II is as arbitrary, capricious and fickle as they come.  The damage is multiplied by the hyena like layer below him, scavenging for every morsel of approval Trump choses to administer.

Any "rule sets" will come from Congress and/or the Supreme Court, not from the Donarch.  Executives and investors would be wise to ask those counterbalancing bodies for assistance.  

Oddly, Carlyle's superpower has been influencing the White House and elected officials.  Trump II targeted Carlyle co-founder David Rubenstein with two savage whims.  First, replacing Rubenstein as Chairman of the Kennedy Center.  Second, going after the Smithsonian Institution, another prized Rubenstein patriotic philanthropy endeavor. 

Carlyle's Vice Chair of Global Affairs Admiral James Stavridis savaged Trump's Defense Chief for his repeated use of the Signal communication app and for turning the Pentagon into a "back stabbing" enterprise.  Stavridis could not find the merit in hiring your brother and your wife.

Private equity underwriters (PEU) are used to setting the rules.  PEU legends walked the White House grounds through Red and Blue administrations, earning the title "policy making billionaires."

On May 23rd those grounds may be hosting the Top 25 Trump meme-coin holders.  I don't expect any PEUs in that crowd but there may multiple TechGods.  They have proven to be a more shameless bunch.

Update 4-25-25:  Carlyle's Rubenstein is Fellow and former board member of the Harvard Corporation, the target of another Trump Savage Whim.

The PEUtification of Iran

The Carlyle Group's Admiral James Stavridis and 8VC's Joe Lonsdale want to invest in Iran.  TechGod Joe told CNBC said he is really excited to invest in Iran.  Stavridis noted in a Semafor interview:

And then if we do get to a serious ceasefire, which I think is not impossible at this time, what is the big investment opportunity in the Middle East? It could be Iran. There’s a lot of chaotic movement, but the potential of this country that’s two and a half times the size of Texas, 90 million people, demographics vertical, highly educated, a culture that’s deep and strong, they believe in themselves as Persians. If you follow the geopolitical trends to a happy ending, which is not impossible, Iran becomes a very interesting investment opportunity. It could look like the reconstruction of the Korean peninsula after the end of the Korean War.

It would be a natural fit for a politically connected private equity underwriter (PEU) like Carlyle to open an office in Tehran.  TechGod Joe Lonsdale's Palantir could take over spying on citizens from the mullahs.

PEU Legends and TechGods remaking Iran in the image of U.S. oligarchy?  It'd be a spectacular PEUtification, "something like no one has ever seen before," if they had not been looking in the American economic/government mirror every single day for the last two decades.

Update 12-6-25:  Lonsdale must be studying under Iranian mullahs given his desire for public executions done by masculine leadership.  They have to use all that information obtained from spying on U.S. citizens.  Otherwise Uncle Sam may quit paying the TechGods billions .

Carlyle Group Bets on Naval Conflict

Maritime Executive reported:

Private equity companies The Carlyle Group and Stellex Capital Management have agreed to merge two American shipyard firms, Oregon-based Vigor Industrial and Norfolk-based MHI Holdings. The combined company - Titan Acquisition Holdings - will have ship repair, fabrication and defense contracting capabilities on both the Pacific and Atlantic coasts. 

Carlyle cut its teeth on defense contractors, United Defense, BDM international and Vought Aircraft Industries.  Carlyle hired former Defense Secretary Frank Carlucci as managing director.  That was three decades ago.

GovConWire reported on the CarlyleGroup-Stellex Capital deal:

Vigor has approximately 2,300 employees and provides ship repair and fabrication services for defense, aerospace and infrastructure customers through its eight drydocks across Alaska and the Pacific Northwest. Norfolk, Va.-based MHI offers ship maintenance, repair, hull cleaning and ship husbandry services to the U.S. Navy and Military Sealift Command.

Portland Business Journal revealed:

Vigor, which builds and repairs ships as well as fabricates parts for several industries, employs 1,230 local workers and 2,300 overall. It's the region's eighth-largest manufacturer based on employee count. The company reported $678 million in 2016 revenue.

It landed its largest contract ever, a nearly $1 billion contract to build the U.S. Army's next-generation landing craft, in 2017. Vigor also recently took over the former home of Christensen Yachts to set up the all-aluminum fabrication facility, saying at the time it will invest millions in capital upgrades and equipment.

In February, the company announced it would build the craft in Vancouver. It also said the contract could boost its Vancouver employment by 400 workers.

Today Carlyle is a global private equity underwriter (PEU).  The U.S. PEU model involved hiring the politically powerful to influence government support for the greed and leverage boys.  That's now worldwide.

Portland Tribune added:

Vigor also builds high-performance military craft for the United States and other allied foreign governments.

How will Carlyle use its political influence to profit from naval conflicts?

Tom Rabaut, former President and CEO of United Defense and a current operating executive at The Carlyle Group, and Admiral James Stavridis, a retired 4-star U.S. Navy officer, former NATO Alliance Supreme Allied Commander, and a current operating executive at The Carlyle Group, will both join the Board of Directors. 

Rest assured they will.

Update 8-2-19:  President Trump indicated a blockage is under consideration for Venezuela to restrict outside support from Russia, Iran and China.

Update 8-25-19:   The Obama administration declared Venezuela a national security threat and instituted economic sanctions which have harmed citizens.  President Trump seems ready to finish off what Obama started.

Update 3-3-20:  Motley Fool reported: "Huntington Ingalls allies with Vigor".

Perhaps this is why Huntington Ingalls announced a couple of weeks ago that it is forming a partnership with Vigor Marine. In a somewhat complex transaction, Huntington will contribute its San Diego Shipyard to Titan Acquisition Holdings, a company that (according to S&P Global Market Intelligence) is majority owned by private equity giant The Carlyle Group (NASDAQ:CG). Titan itself is described in this press release as being comprised of Vigor Industrial (Vigor Marine's parent company) and MHI Holdings (also a subsidiary of Vigor Industrial). In effect, Huntington Ingalls is merging part of its business with Vigor Marine, taking for itself a minority interest in Titan (and Vigor) in exchange. 

Update 1-5-23:  Carlyle is ready to cash in on Titan-Vigor-MHI for roughly $2 billion. 

Update 6-29-23:  Carlyle sold Titan-Vigor-MHI to an affiliate of Lone Star Funds for an undisclosed amount.  A 6-15-23 press release on the closing is on Vigor's website but not on MHI's.

Barbarians in the Boardroom

Adam Taggart of Thoughtful Money once pondered offering a private equity product to his Wealthion viewers.  I can't imagine that happening after watching his latest "Barbarians in the Boardroom" interview with noted author Gretchen Morgenson (embedded above).  

Frankly, it is heartening to hear two people so eloquently state the damage done by private equity underwriters (PEU) in industry after industry.  I saw the potential in 2006 after reading the White House Lessons Learned report on Hurricane Katrina.  The hospital with the highest death toll post Katrina had been purchased by The Carlyle Group months prior.  Those deaths got not one mention, zero.  After finding more disturbing situations regarding private equity-government connections I created PEU Report in July 2007.

Over the last seventeen years the greed and leverage boys took over much of the U.S. economy.  Founders dined with and advised U.S. Presidents. 

Red and Blue political campaigns targeted PEU's preferred "carried interest" taxation for elimination.  None have pulled it off, despite virtually no public support for retaining the tax break.  

The Biden Cabinet is chock full of PEUs.  His two Chiefs of Staff?  Both PEUs.  Trump's top advisors rushed to start PEU firms post public service, Jared Kushner-Affinity Partners and Steven Mnuchin-Liberty Strategic Capital.

Blue Team Presidential nominee Kamala Harris turned a blind eye to Mnuchin's OneWest Bank's robo-foreclosing on homeowners in the wake of the September 2008 financial crisis.  Harris did so as California's Attorney General. 

“OneWest rushed delinquent homeowners out of their homes by violating notice and waiting period statutes, illegally backdated key documents, and effectively gamed foreclosure auctions.”

The FDIC subsidized OneWest to the tune of $1 billion as it did what it pleased to struggling homeowners, irregardless of legality.

Billionaire techbros joined the PEU storming of D.C.  Their convergence means even more massive donations washing around our nation's capital.  Techbros/PEUs want low(er) taxes, less regulation/legal protection, access to Uncle Sam's giant wallet and an "all of government" blessing for cryptocurrencies, secondary PEU offerings, and fee secrecy (the price is not the price).

Politicians Red and Blue love PEU and their new tech-brethren.  Increasingly more are one (even both like JD Vance).  

The common people caught a glimpse of this recently on MSNBC with the interview of Carlyle Group Global Strategist Admiral James Stavridis.  There was nary a Carlyle logo in sight, so I added one.

CNN's Jake Tapper interviewed billionaire tech bro Reid Hoffman regarding his planned fundraiser for Kamala Harris and his interest in having Federal Trade Commission Chair Lina Kahn replaced.  Tapper, to his credit, noted that sizeable political donations could buy influence.  

Hoffman jumped on his verbal unicycle, balancing all of his roles, political donor, expert, investor, owner, employer, founder and board member.  He implied they never overlap, as if he couldn't do something nefarious within any of those roles.  Reid is the poster child for "conflicts of interest" in the Microsoft-Inflection deal given he sits on both sides of the deal (Microsoft board member, Inflection AI co-founder and Greylock Partner-Inflection's owner).

Reid wants Kahn  replaced because the administration's antitrust efforts in the technology space are "bad for investment."  Billionaire Hoffman's Greylock Partners bio page states:

His foundational thesis of the power of networks extends beyond marketplaces and social ecosystems. Recently, it has led to his investments in sectors including autonomous transportation, cryptocurrency, and shipping logistics.

And how might Uncle Sam serve as a catalyst for any of Reid's newest endeavors?  What's on tap for autonomous transportation, crypto and shipping logistics at the federal level?

Hoffman is Chairman of Endeavor Catalyst, an international investment vehicle.

Unlimited Hangout reported on the history of global tamperer Endeavor.  The story included:

By ensuring that they dominate the leaders of both the public and private sectors of the current and new generations, these oligarch networks are able to control both sides of the “public-private partnership.”

Both sides of the deal! Reid is well aware of that in his Microsoft-Inflection tie up (that awaits FTC review).  Calling for a new FTC Chief in the middle of a review sounds like yet another conflict of interest.  Multiple hats, multiple conflicts.

People pushing their book is nothing new.  Expecting government to facilitate that book has been a several decade degradation.  As Gretchen and Adam pointed out the system has been grossly distorted in their favor.  I'd hate to see if furthered. 

Update:  Big's Matt Stoller wrote about "the price not being the price:" 

....Federal Trade Commission investigating McKinsey, and more broadly, the problem of surveillance pricing, which means corporations setting different prices for different consumers based on big data algorithms.

The prospect of data-driven surveillance pricing horrifies most people and generated wide attention. Even CNBC’s Jim Cramer condemned it, and said that he couldn’t believe he agrees with Lina Khan on it.

It turns out McKinsey was using the same playbook on employee pay, advising companies in a possible form of wage fixing.  I saw plenty of "apparently legal" wage theft while working for a PEU owned healthcare company.  The price isn't the price and the pay isn't the pay in PEU land.  It's all a construct for earning fees.

Carlyle Goes for Triumvirate Presidency

After the failure of co-CEOs Glenn Youngkin and Kewsong Lee, the Carlyle Group is trying a threesome Presidency.  

Chief Financial Officer John Redett, credit head Mark Jenkins and client business head Jeff Nedelman will become the company's co-presidents, effective January 1, 2026.

The triumvirate will serve under CEO Harvey Schwartz.  Also, Carlyle's public face (other than co-founder David Rubenstein) will get a step up. 

Admiral James Stavridis, the former Supreme Allied Commander at NATO and Carlyle's vice chair of global affairs, will become the company's vice chairman.

Doomberg recently noted the strain on private equity underwriters (PEU) as they bottom feed on HVAC companies, veterinary and dental clinics and youth sports leagues.  Just what you want in your 401(k).  

The greed and leverage boys may think their games can go on forever, especially under Trump II, the digital Caligula.  Time will prove them right or wrong.  

Will any of the three co-Presidents become political candidates, like Virginia Governor Glenn Youngkin?  Politicians Red and Blue love PEU and increasingly, more are one.

Rubenstein's Show Hosts Former PEU Klain

Carlyle Group co-founder David Rubenstein interviewed White House Chief of Staff Ron Klain.  Host Rubenstein's introduction omitted Klain's work as a private equity underwriter (PEU) for Revolution LLC. 

Policy making billionaires can get their phone calls answered by elected officials and be heard directly as non-lobbyists.  Rubenstein did not ask Klain if he has any residual holdings from Revolution LLC like Obama Health Reformer Nancy Ann DeParle did from her time as a PEU.

Klain did not pass on how much President Biden enjoyed his Thanksgiving stay at Rubenstein's Nantucket compound.  There was much unsaid on Rubenstein's PEU to PEU show.  

Update 4-3-22:  CNN's Fareed Zacharia interviewed Carlyle Group's Admiral James Stavridis yet again on Russia's war on Ukraine..  No mention of his PEU ties or Carlyle's war profiteering is a consistent theme.  Rest assured the Admiral is advising Carlyle on global shifts and implications for ensuring grand returns.  David Rubenstein has a long history of mining the political world for big profits for Carlyle.

Trump's Instant "T" Frustrates PEU Leaf Readers

Private equity underwriters (PEU) hired high level tea leaf readers over the last few decades.  They include:

The Carlyle Group - Admiral James Stavridis (a regular on CNN)

KKR - General David Petraeus

Apollo - David Krone, former Chief of Staff Senator Harry Reid

These talented seers of the future were aided by PEU founders, legendary for their ability to influence government policy.  

Trump II's tariff gyrations have flummoxed PEU Legends and their high paid strategists.  "T" is for tariff and it's very hard to read the leaves if they remain in the mind of one man, especially one known for his savage whims.

The greed and leverage boys thought they'd be shopping affiliates in an economy with accelerating growth and increasing capital flows into the U.S. because "our tech is the world's future."  That is not happening.

Oddly, PEUs may gain new affiliates via their private credit offerings, getting the keys to other PEU's affiliates unable to keep up with interest payments.  

PEU Libation Day may involve exchanging their sponsor's name, creditor eats wiped out equity owner.  Those tea leaves are somewhat readable.

Otherwise, the world awaits the decrees of the Savage Whimmer.  Libation may be in all our futures.

Update 4-4-25:  Trump truly savage whimmed the U.S. economy with his grossly excessive tariffs.  Wall Street spent the last two days imploding.

ZeroHedge ran a piece that does an outstanding job of illuminating numerous PEU dilemmas.  PEU siphoning of captive insurance company assets could jeopardize insurers as tariffs attack corporate earnings, cash flow and ability of PEU affiliates to pay sponsor management fees and interest on sponsor laden debt.

Rubenstein Rubs Crypto Lamp

Billionaire David Rubenstein said the crypto "genie is out of the bottle."  Rubenstein said crypto was "here to stay" in May 2021 after investing in Paxos through his family office in 2020.  The Carlyle Group co-founder's three wishes are for more money, more money and more money.  

Rubenstein believes the U.S. government and/or Federal Reserve Bank will offer more stimulus.

"Many people are going to look at whether the US economy is now going to be needing some stimulus. It was growing back after COVID, but now it's going to be stalling a little bit because of Russia." 

Heaven forbid Carlyle affiliates refinance their debt at higher interest rates.  

"The Fed is doing the right thing, but as we do begin to increase interest rates, it will slow down the economy. And when you have inflation and high interest rates, that's not a good combination."

The greed and leverage boys have one of their own as Fed Chair.  Jay Powell will continue to look out after his own.  

"Russia-Ukraine is something that's top of mind for me, because as the global economy was beginning to recover from COVID, we now find ourselves in a free-fall a bit, in terms of the global economy."

Carlyle has Admiral James Stavridis as Vice Chair Global Affairs to read the PEU tea leaves.  David Petreaus does the same for KKR.  Both have been on the airwaves discussing the war.  Neither mentioned their private equity underwriter (PEU) ties as they advised the American public.  

David Rubenstein knows about releasing genie's into the world, as private equity may be the most widespread and nearly invisible group influencing the U.S. government.  The PEU boys always get their wish.

Update 4-13-22:  Blackrock is now a strategic partner with crypto payments company Circle, which applied to be a national bank.  FDIC backing, Treasury window?

 Update 5-11-22:  Fortune reported:

In the event the crypto exchange goes bankrupt, Coinbase says, its users might lose all the cryptocurrency stored in their accounts too.

Update 5-18-22: The cryptocurrency unwind came quickly after financial whores Bill Clinton and Tony Blair were in the Bahamas pushing crypto. 

If you don’t see that the crypto “industry” has become just as blindingly corrupt, just as oozingly fatuous, just as profoundly captured by the Nudging Oligarchy as the traditional financial services industry it was supposed to replace … well, you’re just not paying attention.

Update 5-27-22  Paxos received a federal trust charter from the Office of the Comptroller of the Currency.  Paxos National Trust entity is a federally regulated entity offering custody services, stablecoin management, payment, exchange and other services.  It is different from New York Department of Financial Services-chartered Paxos Trust Co.

Update 7-10-22:   Wolf Street writes:

Stuff blows up because of leverage and cascades through the crypto space because everything’s interconnected.

Update 7-11-22:  Crypto hedge fund Three Arrows Capital founders are AWOL.  Creditors asked a court to "subpoena the founders and have them provide a list of company assets including wallets it controls, bank accounts, digital assets in its possessions, derivatives contracts, securities, accounts receivables, and all company records."

Update 8-2-22:  FDIC insured banks ran with the crypto devils and may go under as a result.  How this is remotely OK is a question one should ask David Rubenstein and his former employee Jerome Powell.

Update 10-1-22:  Rubenstein remains a crypto promoter. 

Davos in 45 Days

The annual meeting of global tamperers, greedy executives and subservient politicians will be held in Davos, Switzerland from May 22-26.  Corporate executives and private equity chieftains buzz in on private jets in search of dislocation to lever.  In 2022 they haven't had to look far.  Dislocation is everywhere and it stands to take down a precariously situated affiliate or two.  

KKR's General David Petreaus and Carlyle's Admiral James Stavridis are working overtime to sort out global changes for their respective private equity underwriters (PEU).  With crisis comes opportunity.  That means gunning for outsized PEU profits. 

Davos deals historically involved gobs of money triggering absurd levels of executive and PEU compensation.  2022 may be different as interest rates rise and inflation blows a hole in the common person's finances, the engine of the U.S. economy.  

Rising rates make rolling over PEU affiliate debt more challenging.  The Carlyle Group is pushing its second Credit Opportunities fund to buy discounted corporate debt.  One way to garner new affiliates is through bankruptcy.  Carlyle took over Mrs. Fields and Brintons' in such a manner.  Brintons' founding family had nothing nice to say about Carlyle in 2011.  I'm sure Brintons' pensioners felt likewise.

The promise of globalization was cheap goods would extend your dollar further.  That made decades of no to minimal raises more tolerable.  All along the way globalization players (corporate executives, politicians and the finance industry, including PEUs) found ways to enrich one another massively.  Thus, they are in position to weather the inflation storm and offer ridiculous, insensitive statements on a widespread basis.  

That bill of goods is long gone and a number of people I know are severely struggling to get by.  Homes are being turned over to banks.  Cars are repossessed.  Health insurance is unaffordable, so risks must be taken.  

The World Economic Forum Annual Meeting will provide the opportunity to learn where global tamperers have migrated in their thinking.  They pretended to be concerned about income inequality, but the problem has magnified under their watchful eye.  

Just as friends are handing over car and house keys to creditors, will the PEU boys do likewise with affiliates?

Update 4-7-22:  The theme for Davos is "The Great Narrative."  I've seen leaders use narratives, i.e. lies and distortions, to enhance their wealth and personal power, regardless of harm to others.  The theme for the annual gathering of global tamperers should be "The Selfish and their Great Manipulation."  

Globalization failed on its promise to provide an endless supply of cheap goods.  Technology will fail to solve our planet's greatest problems because our issues are based in broken relationships (selfishness, greed, arrogance, inequity, dismissiveness, and inability to listen).  Automating toxic human interactions for the sake of money is the singular achievement of most tech.  

Update 5-5-22:  The PEU "public pension savior" narrative may burst if one New York Assemblyman gets his wish for PEUs to reveal their contracts and fee arrangements with New York's public pension funds.  

Update 5-18-22:  Three days until the Swiss gathering of global tamperers.  The WEF description of the meeting includes:

Against a backdrop of deepening global frictions and fractures, it will be the starting point for a new era of global responsibility and cooperation.

Hardly.  The Davos crowd is mostly there to be seen and conduct deals.  Greed for more money and more power, that's the lot that attends.