Gone are the days of corrupt politicians “stuffing tens of thousands of dollars into a freezer” from direct bribes. In fact, it is considered rather witless for government officials or their spouses to involve themselves in direct bribery schemes due to our current-day disclosure laws. Today, a new corruption has taken hold of political corruption that Peter Schweizer in Secret Empires calls “corruption by proxy.”
According to this newly released book, corruption by proxy is “far more troubling and difficult to detect.” These financial gain deals are channeled through politicians’ family members or close confidants and require absolutely no disclosure to the public. Instead of tens of thousands of dollars as before, we are now looking at “multibillion-dollar equity deals done in the dark corners of the world into family members bank accounts.” These scandalous deals have ensnared Joe Biden, former Secretary State John Kerry, Mitch McConnell, Barack Obama and many other key figures across the country.
In many ways, officials would rather take financial donations from foreign entities than American corporations due to the difference in transparency within other governments. Politicians can receive even larger sums of money with much less public scrutiny.
As is the case with Joe Biden and John Kerry, it seems they often used their children as conduits for their multibillion-dollar deals while they held the highest positions in our government. This practice is so common for the high ranking children of Communist Chinese Officials, they coined their own term: the Princelings. During the Obama Administration, former Vice President Biden and Secretary of State Kerry seemed to learn this practice quite well with Princelings of their own.
In 2009, Biden’s son Hunter and John Kerry’s stepson Christopher Heinz went into business together. Along with close confidant Devin Archer, Heinz and Hunter Biden opened up an international private equity firm called Rosemont Capital with several other related LLC’s such as Rosemont Seneca and Rosemont Reality. Although Rosemont Capital was fairly new and neither sons had any experience, they were astonishingly able to meet with the most powerful government leaders in China.
Since the beginning of the Obama administration, Joe Biden offered a surprisingly different tune to improving the US and Chinese relations and was often accused of being “soft on China.” In December 2013, Hunter and Joe Biden traveled via Air Force Two to China for meetings with top officials to secure a better relationship with the Chinese government. This came at a time where China had claimed disputed territories within the East China Sea, much to the dismay of American allies.
The media persistently covered Joe Biden’s meetings with Vice President Li Yuanchao and President Xi Jinping, they even covered his daughter who also accompanied them. Unsurprisingly, there was no mention by mainstream media as to Hunter Biden’s whereabouts during the trip. As Vice President Biden was meeting with the Chinese President, Hunter was securing a deal with The Bank of China. A mere 10 days after the Biden expedition, the government owned Bank of China set up a joint venture with Rosemont Seneca. An investment fund called Bohai Harvest RST was created between the two entities with an immediate Chinese investment of $1 billion dollars. Afterward, Vice President Biden expressed no qualms about Chinese expansion in the East China Sea.
After the deal occurred, China went from a “trot to a gallop” in terms of aggressive territorial claims within the South China Sea. The Chinese government reclaimed 3000 acres of land and began militarizing numerous islands (many of them man-made).
Only a few months later, in July 2014, Secretary of State Kerry arrived in Beijing for private, high-level meetings with Chinese officials. It was claimed that China and the US relations were in a downward spiral, yet once again this came at a time where Chinese forces were expanding. After 2 days of secret conversation, President Xi and John Kerry stated there was a mutual commitment to bolster economic ties. Later, it was found they were also privately discussing North Korea and the Chinese hacking of American computers.
As discussions proceeded between President Xi and Kerry, the Secretary of State’s son Christopher Heinz was making another deal with a government owned company on behalf of Rosemont, this time it was under Rosemont Realty. Gemini Investments was an indirect subsidiary to the Chinese government with ties to their naval force and was enabled to buy out offshore vehicle Rosemont Opportunities Fund for $34 million with many larger deals to follow. It was recorded that another half a billion dollars went into the Rosemont investment fund Bohai Harvest RST (BHR) after these secretive meetings. One year later, the same company purchased 75% of Rosemont Realty with a whopping $3 billion dollar commitment. This seems to have effectively bought the Secretary of State’s silent endorsement of Chinese Naval Forces expansion in the South China Sea as well as the isolation of Japan, South Korea, and the Philippines.
In addition to allowing military expansion, friends and family of Biden and Kerry continuously involved themselves in private deals which bolstered Chinese military and strategic interests above American ones. In 2015, the Biden-Kerry backed BHR combined forces with a Chinese military contractor Aviation Industry Corporation of China (ACIV). AVIC is dead center in the military-industrial complex and has often been accused of stealing American military technology such as drones and the U.S. F-35 stealth fighter.
This same year, Rosemont Seneca was involved in another controversial deal. They became a heavy investor aligned with state-owned nuclear company China General Nuclear Power Corporation (CGN). The following year, employees of CGN had been arrested and charged by the U.S. Justice Department for stealing nuclear secrets. Hunter Biden and Christopher Heinz have yet to be ensnared in any investigations for their dealings in corrupt Chinese companies such as ACIV and CGN.
Corruption By Proxy
John Kerry and Joe Biden weren’t the only ones accumulated wealth from the Chinese government, Senator Mitch McConnell and his wife Elaine Chao also benefited from similar arrangements. In the late 1980’s Senator McConnell took a hardline view on China after the Tiananmen Square massacre. Since he began his relationship with longtime White House official Elaine Chao, his stance has softened quite a bit over the decades.
The Chao family fortune comes from a shipping firm her father founded called Foremost Group. The company has made hundreds of millions of dollars due to its close relations with the Chinese government. Chao’s father, James Chao, even served on the board of directors for a Chinese military contractor and her sister is an appointee of the Bank of China. Much of their success comes from their alliance with the state-owned defense company China State Shipbuilding Corporation (CSSC). In 2004, McConnell and Chao’s net worth was $3.1 million, now it is anywhere from $9.2 and $36.5 million dollars. A large portion of their net worth came from James Chao in the form of a “gift” of $5 million to $25 million in 2008.
In return, McConnell and Elaine Chao, who are both still elite officials in our government, continuously let China expand as a global power. For instance, on issues of currency manipulation McConnell supported punishment for Japan but has yet to take a stance on China’s currency manipulation. Further, Elaine Chao continuously to deny the interference of the Chinese government in our political affairs.
Of course, while McConnell, Biden, and Kerry were involved in their affairs, Obama has his own corruption by proxy with his pals. Obama’s favorite tactic was what Schweizer calls “smash and grab.” That is, while Barack Obama put forth one of his notorious, job-killing regulations harming tens of thousands of citizens, he always had close friends positioned to reap the benefits. One such friend is Marty Nesbitt who owned a company Vistria, he profited off Obama’s strict regulations against for-profit schools. Company shares would plummet and Vistria would swoop them up for pennies on the dollar. Nesbitt did this for years; he now sits as a chairman for the Obama Foundation.
The same tactic was used by Obama friends George Soros, coal investor Tom Steyer and John Podesta. Obama implemented strict regulations on the oil and coal industries. While at the same time Soros and Steyer would buy up the coal stocks for cheap after the stocks tanked. Obama decided not to approve the Keystone XL pipeline in 2012, turns out it was due to his favoritism towards Steyer’s competing pipeline at the time with the support of John Podesta who was also advising against the Keystone Pipeline. George Soros invested heavily in alternative energy companies, many of which ended up benefiting from the Obama Stimulus Package. Soros also owned major investments in the Brazilian oil company Petrobras. Of course, when Barack Obama was elected he imposed nearly a complete ban on U.S. offshore drilling and sent billions in loans to Petrobras for their offshore drilling needs. A decision which many called hypocritical, not understanding the complex and powerful deals behind the scenes.
In short, the Obama era was the complete free-for-all and sellout of the U.S. made to benefit the already wealthy elite and harm America economically and militarily. It seems many have been shortsighted on the dangerous power China has consumed in the past decade. From currency manipulation, the naval expansion which has isolated our allies and the total purchasing of our politicians, it is time Americans catch up to what Donald Trump has said for years. China has taken advantage of us, stealing our technologies and laughing all the way to the bank (alongside our politicians). With these shocking revelations of Chinese dominance, it is easier to understand why President Trump has increased naval presence observing the South China Sea, restrengthened relations with our allies and announced $60 billion worth of tariffs to be placed on the Chinese. Someone had to regain American control before it was blind sighted by complete infiltration from the Communist Chinese government.
Written By FULCRUM Contributor Yvonne Parkinson