The Latest from Iran (3 September): Qods Day and the Karroubi Siege

2250 GMT: Before shutting down, we have posted the claimed video of Thursday night/Friday morning's attack on Mehdi Karroubi's house.

2220 GMT: Ending with Gratitude. EA took the night off for a music festival (yes, an EA Music Corner special may be coming in the morning).

Thanks to all for contributing information and ideas on an interesting day.

We'll be back early in the morning with the latest news and a series of special analyses on what this Qods Day meant for the Iranian regime and the opposition.

NEW Latest Iran Video: The Claimed Attack on Karroubi’s House (2/3 September)
NEW Iran Video and English Summary: Mehdi Karroubi after 5th Night of Pro-Regime Siege (3 September)
NEW Iran Urgent: Breaking News with Video on Day 5 of Karroubi “Siege”
Latest Iran Video: The Rooftop “Allahu Akbars” (2 September)
Pro-Regime Media Asks, “Which is Worse: Stoning or Prostitution?”
NEW Iran Document: Karroubi-Mousavi Meeting on Eve of Qods Day (31 August)
The Latest from Iran (2 September): Karroubi, Mousavi, and Qods Day

1930 GMT: Larijani Talks Tough on US. Speaker of Parliament Ali Larijani, speaking to a Qods Day audience, has maintained his public line that it is not possible to hold direct talks with U.S. officials.

“Negotiation with the US is not possible and no one has the right to make compromise with the Great Satan,” said Larijani.

However, on the wider (and relevant) issue of whether Tehran would discuss uranium enrichment with the 5+1 Powers, which include the US, Larijani was ambiguous. He said that, according to the Supreme Leader’s guidelines, Iran’s policy is negotiation but not with the US.

1900 GMT: Checking in from a music festival in the centre of Britain, I find Press TV giving me the truth on the Karroubi siege.

It is largely a straightforward report of "groups of people...preventing (Karroubi) from leaving his residence in Tehran" to attend the Qods Day rally, although the casualties --- a Karroubi bodyguard is reportedly in a coma --- are reduced to "four people were reported wounded".

Then the blame sets in: "Mehdi Karroubi was one of the controversial figures following the 2009 presidential election in Iran and the frenzy that followed the vote in the wake of baseless fraud allegations against President Mahmoud Ahmadinejad's re-election.

Public anger against Karroubi were intensified after his and other opposition supporters attempted to obstruct last year's Day of Quds rallies by invoking purely nationalistic slogans.

He also created controversy and public rage by airing rumors of jail-rape by unidentified individuals that had claimed to have been detained during the post-election riots."

1620 GMT: How Big Was That Rally? Fars News' lead story is that the Associated Press has reported on Iran's anti-Israel protests today, with "millions" on the streets. Earlier today, Iranian media were concerned that outlets of the "West" were minimising the crowd.

So it would seem the regime is getting very concerned that the world know that today proves it has a lot of support from its people. I'm looking for the proof: so far I can't track down the Associated Press report.

1615 GMT: Karroubi Watch. Mehdi Karroubi's Saham News, down for a few hours this afternoon (see 1445 GMT), is back on-line.

1600 GMT: How Big was the Regime Rally? Iranian Students News Agency posts a set of photographs of today's march in Tehran for Qods Day. This is the largest crowd shot in the set:



1555 GMT: Attacking the Clerics. Aftab News offers a pro-Government version of the clash today in which a pro-regime crowd --- reported by Rah-e-Sabz as "200 to 300 Basij" (see 1400 GMT) --- entered and shut down the Qoba Mosque in Shiraz, the base of Government critic Ayatollah Dastgheib.

The Facebook site supporting Mir Hossein Mousavi posts photos of those injured in the attack.

1445 GMT: Attacks on Karroubi. Mehdi Karroubi's website Saham News (see 1420 GMT) has been taken down by an apparent attack diverting readers to a "dummy" site on financial matters.

1435 GMT: Today's Alice-in-Wonderland Statement. Tabnak accuses foreign media --- who operate, if they can report at all, under strict Government oversight --- of "censoring" reports on the turnout for the Qods Day rally. Mehr levels a similar charge at CNN.

Am I sensing regime worry that the rally may not have been the grand success it wanted? Fars attacks the BBC and al-Arabiya for minimising the turnout.

1430 GMT: Rafsanjani Watch. Aftab News reports that former President Hashemi Rafsanjani joined today's march for Qods Day.

1425 GMT: Sanctions Watch. Japan has imposed new sanctions on Iran over Tehran's nuclear programme, banning transactions with some Iranian banks and targeting energy-related investments.

Japan approved sanctions against Iran last month, but US officials have been pressing Tokyo to adopt tougher measures.

Despite the pressure, Japan --- a major importer of Iranian crude oil --- but did not impose any restrictions on its oil imports.

1420 GMT: Karroubi Watch. Mehdi Karroubi's Saham News, a primary source of information about the siege of the Karroubi house, has been off-line for the past hour, first with a blank screen and now with a "403 Forbidden" error.

1405 GMT: Perspective. An EA source from Iran offers the following, "The deaths are going on all the time; recently two people from my town were killed by the regime. The families are forced to say they died of natural causes, but everyone knows that the regime killed them. And that is going on in every city, town, and village of the country. People are just disappearing. And those who are being killed are the people no one hears of, and those who do have a voice are being silenced.'

1400 GMT: Shutting Down the Clerics --- Clash in Shiraz. Rah-e-Sabz provides more information on the closure of the Qoba Mosque in Shiraz, the base of Government critic Grand Ayatollah Dastgheib (see 1050 GMT), this morning. The website claims that 200-300 Basij entered the mosque and proceeded to attack the cleric’s students.

1355 GMT: Academic Corner. Iran’s Deputy Minister of Higher Education, Bagher Khorramshad, has cancelled his trip to the Netherlands after protests by the Dutch-Iranian community.

The visit, organized by Clingendael (the Netherlands Institute of International Relations) and the Iran's Embassy was scheduled for 17 September.

1340 GMT: The Karroubi Siege. It looks like this story may take over from the Government's Qods Day showpiece. The latest is that Grand Ayatollah Bayat Zanjani has called Mehdi Karroubi to express his support and praise his resilience, according to reliable sources. Bayat Zanjani denounced the attacks on the Karroubi house and hoped that the pro-regime crowd would cease their activities.

One of Imam Khomeini’s grandsons, Seyed Yasser Khomeini, also visited Mehdi Karroubi to express his condolences and denounce the assailants.

1215 GMT: The Karroubi Siege. The Assembly of Teachers and Researchers of Qom Seminary School has issued a statement strongly condemned the attacks by a pro-regime crowd on Mehdi Karroubi's home.

Karroubi's Etemade Melli party have also put out a statement of condemnation.

1210 GMT: More Tough Talk (see 1040 GMT). General Mohammad Reza Naqdi, the commander of the Basij military, has complained that "our hands are closed due to treaties" when it comes to actions of Zionists. Naqdi continues, "We are waiting for a foolish move by Israel to erase it."

1050 GMT: Controlling the Clerics. The Qoba Mosque, the base of Grand Ayatollah Dastgheib, is closed for prayers, even though it is a Friday.

Dastgheib, far from coincidentally, is a prominent critic of the Government.

1040 GMT: Today's Tough Talk. Let's hand over to the head of Iran's armed forces, General Hassan Firouzabadi: ""Our developed weapons can hit any part of the Zionist regime....We hope not to be forced to attack their nuclear facility [at Dimona]."

0950 GMT: Karroubi Watch. More information from Saham News on last night's violence by the pro-regime crowd surrounding Mehdi Karroubi's house: the website claims a husband and wife were beaten. The incident allegedly began when the woman, who had her headscarf removed, was spotted using a mobile phone.

Saham News also claims the couple were detained.

Mir Hossein Mousavi and his wife Zahra Rahnavard, in a phone call to Karroubi, offered their full support "and strongly condemned the hideous and foolish actions of a group of thugs pretending to be Muslims".
0920 GMT: Rah-e-Sabz reports that security forces have flooded 7 Tir and Enghelab Squares and lined roads leading to 7 Tir from the north. Several people have been detained, one allegedly for wearing a Green bandana.

The website also claims security forces with batons are boarding metro cars in Tehran to seek out any Greens. Forces at checkpoints in Tehran and are stopping and searching people.

Mehdi Karroubi's son Hossein says his family home is still surrounded, preventing his father from getting to the Qods Day rally.

0833 GMT: Ahmadinejad's speech ends. Nothing new in a statement which was meant to whip up crowd sentiment against Israel, and certainly no references to the internal situation (apart from the President's repeated, unintended ironies on allowing the people to choose and the media to speak and on the flaws of the West in supporting "sham elections").

The far more important issue, I suppose, will be the reaction that the President's speech gets from others in the Iranian establishment as well as from the population.
0825 GMT: I'm sorry, but I can't keep a straight face when Ahmadinejad enjoins the "West" to "listen to your people" and "let the media speak": "Do not silence them. Let them raise their voice."

0820 GMT: Ahmadinejad, addressing "the US and the West", challenges them --- as the authors of the United Nations Human Rights Charter --- to support a referendum in Palestine and to hold referenda amongst their peoples over Palestine policy.

0815 GMT: Ahmadinejad now appealing to Arab leaders to "let your people be free" to "bring down the Zionist regime". He says, "Instead of relying on American and the West, you should rely on God."

0810 GMT: Ahmadinejad says, "Israel-Palestine direct talks have already failed."

0808 GMT: Ahmadinejad now criticising sham elections in Iraq. (No, he showed no sense of irony or self-reflection with that statement.)

0803 GMT: Now Ahmadinejad gets confident saying that, with the rise of Qods Day, the Zionists are under pressure and "are on the verge of collapse".
0800 GMT: More of the same from Ahmadinejad, as crowd breaks in with "Death to Israel".

0755 GMT: Karroubi Watch. Saham News reports that more than 20 motorcyclists have surrounded Mehdi Karroubi's residential complex.

0748 GMT: More from Ahmadinejad on "moral corruption" and "cultural devastation" of the "Zionist regime": "No culture is immune".

Ahmadinejad says the Zionists have "manipulated history of World War II" with the symbols of the Holocaust", which he calls a "likely crime". He adds that politicians in Europe or North America are "selected by the Zionists".

0740 GMT: President Ahmadinejad is now speaking at Tehran Friday Prayers, commenting on the repression of the Palestinian people and the "occupation" of the area over the past 60 years.

0710 GMT: Press TV is now featuring crowd shots from Kerman in central Iran and Oroumiyeh in northwestern Iran as well as Tehran.

No significant action, so Press TV is playing up the presence of Lauren Booth (the half-sister of Cherie Blair, wife of former British Prime Minister Tony Blair) as their correspondent in the centre of Tehran. She is enthusiastic, opening, "Well, I've never seen so many people take to the streets of a capital city in my life. Here we are...on Al-Qods Day 2010 with a million people expected....The message coming from Tehran today, not just to Palestine but to the world, is one of steadfastness, a message of solidarity."

0645 GMT: MediaWatch. No real movement yet, so we settle for the unintended irony of analyst Seyed Mohammad Marandi in Press TV's studio: "After the Revolution, people power is more important."

The host and Marandi continue to talk about "people power, a factor, a big factor". At no point do they reflect, as they speak in post-election Iran, that the term might hold significance in a context different from that of Palestine.

0635 GMT: The Karroubi story continues to hold centre stage as we wait for the Qods Day rallies for the regime. We have posted the video and English summary of the cleric's TV interviews after the violence on the fifth night of the siege of his house by a pro-regime crowd.

0535 GMT: Today is Qods (Palestine) Day in Iran. Established by Ayatollah Khomeini on the last Friday of the holy month of Ramadan, the occasion traditionally shows solidarity with the Palestinian people as they seek independence. Last year, however, the day took on a different tone, as those protesting the 2009 Presidential election and the Government's actions demonstrated on the streets.

A year later, after the regime's suppression of dissent and amidst the continuing turmoil within the system, there is unlikely to be a significant show of opposition. Instead, the question is: can the regime and Government offer an enthusiastic demonstration of support for their legitimacy? The showpiece will be Friday Prayers in Tehran, where President Ahmadinejad will take the podium before Ayatollah Ahmad Khatami offers the Friday Prayer speech.

Already, however, the Government's effort has been complicated, if not overshadowed, by the events of Thursday night outside the residence of Mehdi Karroubi. The fifth night of the siege by a pro-regime crowd escalated into violence that caused damage and injures, as assailants tried to get into the Karroubi house.

An EA correspondent gets to the heart of the issue and thus the possible difficulties for the regime, even as it tries to parade its authority today:

Either Ayatollah Khamenei knews and approved the attack, or he is unable to stop it. Ahmadinejad on the other hand probably knev and secretly approves.This whole sordid affair casts a sorry light over the government's insecurity and its reliance on intimidation and threats in order to cow the opposition into silence.

We have continuing coverage of the Karroubi siege in a separate entry.

Video: Israeli Spokesman Regev "No Contradiction Between Our Security Needs and Palestinian Sovereignty"

Visit msnbc.com for breaking news, world news, and news about the economy

Israel-Palestine Analysis: “Security” Moves to the Front in Direct Talks (Yenidunya)
Israel-Palestine Transcript: George Mitchell on the Direct Talks (3 September)
Israel-Palestine Video & Transcript: Clinton-Abbas-Netanyahu Statements and Meeting (3 September)

Mark Regev, spokesman for Israeli Prime Minister Benjamin Netanyahu, appeared on the US channel MSNBC. Here is a striking extract highlighting Israel's official line: "No contradiction between Palestinian achieving sovereignty and Israelis being secure without threat."

MSNBC: There was an attack by Hamas that killed four Israelis within the last several days. the Prime Minister has made reference to it in terms of the security requirements. could you expand a little bit on the security requirements that Israel feels it needs in order to proceed to a final resolution of this?

REGEV: These attacks, these terrible attacks just underscore the need that with peace, you got to have security. You can't have one without the other. I mean, Israel vacated the Gaza Strip some five years ago. A land we transferred to the Arab side were a land we were attacked with with thousands of rockets....There is no contradictions between Palestinians achieving sovereignty and Israelis being secure without threat.

Iran Video & English Summary: Mehdi Karroubi and Son On 5th Night of Pro-Regime Siege (3 September)

UPDATE 1220 GMT: Mehdi Karroubi's son Hossein tells Deutsche Welle that last night's attack was a response to his mother's letter on Wednesday to Ayatollah Khamenei.

Fatemeh Karroubi had described the siege of her home and asked the Supreme Leader Ayatollah Khamenei if he condoned such “unethical acts”.

UPDATE 1040 GMT: Video of the burned and damaged residential complex of Mehdi Karroubi:

[youtube]http://www.youtube.com/watch?v=iFl-5hJ6_xM&feature=player_embedded[/youtube]

Iran Urgent: Breaking News with Video on Day 5 of Karroubi "Siege"

UPDATE 0900 GMT: The audio of Radio Farda's interview with Hossein Karroubi, carried out during last night's attacks (see earlier updates), has been posted.

After the violence during the siege of his house last night, Mehdi Karroubi spoke with Rasa TV:

[youtube]http://www.youtube.com/watch?v=hDoFugoW0Os[/youtube]

Summary from Facebook page supporting Mir Hossein Mousavi:

Following these events Mehdi Karroubi in an interview with Rasa TV once again announced that he is ready to pay any price and will stand in this path till the end.

Karroubi also once again stressed attendance T the Qods Day demonstrations.

Mehdi Karroubi in this phone interview said: "Following the elections many events happened in the country and everyone witnessed the consequences. We also expressed our positions clearly and caringly. But my clear and frank positions regarding hte country's issues have not gone well with these guys and [therefore] they plan these events and attacks."

Mehdi Karroubi, citing problems such as fraud in the 10th Presidential election (of June 2009) and also problems with foreign policy, said: "Not only there was fraud but there was engineering of votes. From the very beginning the outcome of the election has been decided. We made a mistake entering the election race. We were optimistic and thought that we have elections in this country but later on we realized that this is not the case."

Mehdi Karroubi again emphasised that he did not regret taking this path and declared his readiness to debate pro-government representatives.

Karroubi said: "Regarding the sanctions and the problems with foreign policy, I am announcing that essentially a part of the Revolutionary Guards is [creating] this situation, and they create tensions as much as possible so that in the shadow of sanctions they can plunder people's wealth."

Karroubi added, "This administration that cannot solve the problems of foreign policy or solve economic and cultural problems, and in fact cannot do anything, is after creating tension. Its life depends on the crises."

Mehdi Karroubi emphasised that he supported the Islamic Republic but said,

The current government is not Islamic Republic. Neither its Islamic aspect not its Republic aspect have been preserved. What the people wanted and carried out a revolution for it is different from what is in power today --- if it was [Islamic and a Republic] many of the problems of the people would be solved. The people of Iran are Muslim and are not at warwith Islam and are not at war with the Republic....

Mehdi Karroubi said that the reason for the thugs gathering in the recent nights at his house is his statements on participation in Qods Day: "They have been gathering for five nights, chant slogans, break the windows and tonight it was escalated to its peak. But I am standing. Both myself and my family are ready to pay any price; I am staying here, I am not going anywhere and I have my plans."

Mehdi Karroubi, while expressing sorrow over the discomfort and harassment that the thugs have imposed on his neighbors and family, said:

Where in the world do they organize a bunch of juvenile thugs and muggers to make chaos and insult a political opponent because of disagreement? At this moment that I am talking with you after midnight. They are chanting slogans in the street. It is even more tragic that, after all these scandals, insults, breaking the windows, they start reading the Quran in the street and mourning for Imam Hossein (Shia's third Imam). Apparently they are determined to disgrace Islam.

Mehdi Karroubi in another interview with Saham News...said: "On this holy night (Qadr Night), whatever the almighty God has destined for me, I will welcome with open arms and until my last breath I will not give up on people's rights."

Despite the insistence of his guards and family, Mehdi Karroubi refused to leave the building:" I am standing until the end."

Israel-Palestine Analysis: "Security" Moves to the Front in Direct Talks (Yenidunya)

On 1 September, following the murder of four Israelis ahead of the Israel-Palestine direct talks, we said:

The most significant, if cynical, question is: which side can get the most benefit from this tragedy during direct talks? Will this attack boost Israel through attention to its security concerns? Will it make Ramallah a more valuable partner for peace, given the shadow of Hamas and other opposition groups, especially at a time when polls show that more than half of Palestinians in the West Bank do not believe that there will be a peace agreement in Washington?

Israeli Deputy Foreign Minister Danny Ayalon has offered an answer, underlining the magical word "security" through reference to an "existential threat". He wrote on his Facebook page:

The vicious and cold-blooded attack on four Israeli citizens last night underscores the importance of a security dialogue like the one I just had with our counterparts from Canada and other friends and allies. After the attacks on Israel in recent weeks, the Iranian regime has proven once again the threat that it poses to global peace and security through its proxies like Hamas.

Israel-Palestine Transcript: George Mitchell on the Direct Talks (3 September)
Israel-Palestine Video & Transcript: Clinton-Abbas-Netanyahu Statements and Meeting (3 September)

A day later, Ayalon saw the reward from his warning through pressure on the Palestinian Authority. He said:

While negotiations are restarting in the US, ministers in Abbas' government are continuing with their incitement and encouraging acts of terrorism by visiting the and praising families of terrorists and murderers. These types of visits encourage terrorism, as we saw recently with the murder of four Israelis. The Palestinians need to make a decision, they cannot talk peace and at the same time encourage terrorism.

At the ceremony at the White House marking the official launch of direct Mideast peace talks at the White House, the most prominent word was "peace" (39 times), but it was followed by "security" (24).

Unsurprisingly, Israeli Prime Minister Benjamin Netanyahu made great use of the term. For him, two points are key: the root of the conflict with Palestinians  has not changed, but there are other "genuine security needs of Israel that have changed", due to Iran and its "proxies". Let's go back to his 2009 speech at Bar Ilan University: "The simple truth is that the root of the conflict has been and remains the refusal to recognize the right of the Jewish People to its own state in its historical homeland." Netanyahu reiterated this position yesterday: "We expect you to be prepared to recognize Israel as the nation-state of the Jewish people."

Netanyahu situated this tragedy of this week's killings of Israeli settlement as a contribution to the definition of peace and security in his Washington statement:

The last two days have been difficult. They were exceedingly difficult for my people and for me. Blood has been shed, the blood of innocents: four innocent Israelis gunned down brutally, two people wounded, seven new orphans. President Abbas, you condemned this killing. That’s important. No less important is to find the killers, and equally to make sure that we can stop other killers. They seek to kill our people, kill our state, kill our peace. And so achieving security is a must. Security is the foundation of peace. Without it, peace will unravel. With it, peace can be stable and enduring.

US Secretary of State Hillary Clinton also used the deadly event in the context of "suspicion and skepticism".  "Peace" was not a concrete and immediate action but a series of actions, starting with the willingness to come to Washington. She said:

We understand the suspicion and skepticism that so many feel, born out of years of conflict and frustrated hopes. The tragic act of terror on Tuesday and the terrorist shooting yesterday are yet additional reminders of the human costs of this conflict. But by being here today, you each have taken an important step toward freeing your peoples from the shackles of a history we cannot change, and moving toward a future of peace and dignity that only you can create.

But here is the twist: Palestinian leader Mahmoud Abbas also adopted the "security" framework. Indeed he offered it even more often than Netanyahu, and he also used the attack on the four Israelis for essential context:

Also, with respect to security, you do know, ladies and gentlemen, that we have security apparatuses that are still being built, that are still young, but that are doing everything that is expected from them. Yesterday, we condemned the operations that were carried. We did not only condemn them, but we also followed on the perpetrators and we were able to find the car that was used and to arrest those who sold and bought the car. And we will continue all our effort to take security measures in order to find the perpetrators. We consider that security is of essence, is vital for both of us, and we cannot allow for anyone to do anything that would undermine your security and our security. And we therefore do not only condemn, but we keep on working seriously. Security is fundamental and very sensitive.

US Politics: Obama's Battle with the Conservative Foundations (Haddigan)

Lee Haddigan writes for EA:

Within the large mansion called "The History of the United States" there resides a little-known band of historians: those who study the "Public Authority of Private Institutions". To the uninitiated, that is the influence of philanthropic foundations and their related think-tanks upon the government.

If you doubt the importance of this scrutiny, consider that these historians make a solid case that America’s strategic philanthropy (the funding of studies to directly shape public policy on a certain issue) is the most compelling evidence for the contention that the US is an "exceptional" nation. No other country, they maintain, approaches the money spent by American private institutions to promote a political agenda.

It is not only the amount of money spent that interests scholars, it is also the results achieved by some of the organizations. The Heritage Foundation is the most important conservative think-tank in America, a reputation built largely on its contribution to the Presidential agenda of Ronald Reagan. Heritage helped to shape Reagan's successful 1980 campaign and provided the blueprint for many of the policies pursued by his administration. At the first meeting of his Cabinet, Reagan gave every member a copy of Heritage's Mandate for Leadership: Policy Management in a Conservative Administration. This 1,093-page document contained 2,000 policy recommendations, of which nearly two-thirds were implemented while Reagan was in office.

The measures included the across-the-board income tax cuts which, according to Heritage, “wiped out America's economic ‘malaise', producing the biggest economic boom in U.S. history". In 1982, Heritage produced a study that suggested the use of a missile defense system to protect the United States from nuclear attack. Six months later Reagan made the speech that advocated the establishment of the Strategic Defense Initiative (SDI), and "Star Wars" was born.

Although the Heritage Foundation has not regained the influence it wielded in the Reagan years, it is still the most prominent think tank on the right-wing. On 17 August, it released Solutions for America, a statement of 128 recommendations for Congress covering 23 policy areas.

This includes a proposal to limit the growth in welfare spending by requiring “able-bodied adults to treat a portion of certain welfare benefits as loans to be repaid rather than as an open-ended grant from taxpayers”. It is an idea that will receive little support from conservative candidates in the mid-term election, as they eschew contentious ideological policies in favor of more immediate and practical concerns. Butif the recent past is a reliable indicator, Heritage’s proposal will receive serious consideration in the Republican presidential primaries.

President Obama has recently made the issue of the corporate financing of political organizations, and the related failure of Congress to pass the DISCLOSE Act, a major part of his efforts to establish an ideological difference between Democrats and Republicans in November. And he is not alone. While the president was attacking the "harmless-sounding" Americans for Prosperity (AFP) for launching an attack ad campaign against Democrat candidates, The New Yorker published the article "Covert Operations", a negative report by Jane Mayer on the funding of conservative causes --- including AFP --- by the two brothers who have made a fortune from the family-run Koch Industries.

On 27 August, the Democratic Congressional Campaign Committee submitted a request to the Internal Revenue Service to investigate the tax-exempt status of the foundation which funds the AFP. The thrust of the DCCC’s complaint is that Charles and David Koch are donating money to the Americans for Prosperity Foundation, who then funnel the money into campaign ads provided by the conservative political action group Americans for Prosperity.

Liberal concerns with the use of private money to sway political opinion are nothing new. Charitable foundations were granted tax-exempt status by Congress in 1913 as part of the introduction of income tax, and progressives immediately questioned, through a Commission on Industrial Relations, the "economic power" this action gave organizations, most notably the Carnegie and Rockefeller Foundations, to influence politics. Ironically, the Cox and Reece Committees of the early 1950s applied the same rationale to attack the subversive aims of tax-exempt foundations in promoting Communist propaganda, but the biggest change in regulating foundations came as a result of liberal frustrations with the impact of conservative organizations in the early Kennedy years.

In autumn 1961, labour leaders Walter and Victor Reuther (leading labor leaders) produced a secret memorandum for Attorney General Robert Kennedy on measures the administration could use to muzzle the Radical Right. One of the five proposals was that the IRS investigate tax-exempt conservative organizations and find reasons for revoking their status. As a result, the tax-exempt status of the Christian Echoes Ministry of Billy James Hargis, who gained national notoriety in the mid-1950s for attaching bibles to balloons and sending them over the Iron Curtain, was revoked in 1964 as punishment for its support of the campaign of Barry Goldwater.

After several years of Congressional investigation, the Tax Reform Act of 1969 was passed. This radically altered the rules, which still pertain today, regulating the ability of private foundations to influence political campaigns.

The criticism in recent weeks of corporate and wealthy individuals’ funding of conservative political organizations strikes a sour note with Republicans in what is becoming an increasingly bitter campaign. Historically, at least since the New Dealof the 1930s, Democrats have been able to use union support to outspend Republicans in election years. Allied with the recent addition of the millions spent by George Soros to finance liberal causes, and the recent tendency of Big Business to financially support the Democrats, conservatives are becoming somewhat bemused at President Obama’s emphasis on the influence of corporations on democratic politics.

Quite where the Democrats are going with the attention they are paying to organizations like the Americans for Prosperity, and individuals like the Koch brothers, is as yet unclear. They may drop the issue next week if it is seen as a failure, or they might parlay any success into an attempt to change the tax codes and further restrain the influence of foundations. Perhaps  President Obama has an agenda equivalent to the "Reuther Memorandum" guiding the Democrats’ latest attempts to nullify the political impact of the Radical Right/Tea Party.

Whatever happens, the significance of private institutions for public authority will continue to define America as an "exceptional" nation.