A Taste of Palast's Armed Madhouse: 1927. Again.

Excerpted from Armed Madhouse, a new book by Greg Palast.


1927. Again.

The National Public Radio news anchor was so excited I thought she'd pee herself: The President of the United States had flown his plane down to 1,700 feet to get a better look at the flood damage! Later, I saw the photo of him looking out of the window of Air Force One. The President looked very serious and concerned. That was on Wednesday, August 31, 2005, two days after the levees broke and Lake Ponchartrain swallowed New Orleans.

The President had waited the extra days to stop first at the Pueblo El Mirage Golf Course in Arizona. I'm sure the people of New Orleans would have liked to show their appreciation for the official Presidential photo-strafing, but their surface-to-air missiles were wet. I don't want to give the impression the President did nothing. He swiftly ordered the federal government to dispatch to New Orleans 18 water purification units, 50 tons of food, two mobile hospitals, expert search teams, and 20 lighting units with generators. However, that was President Chávez, whose equipment was refused entry to the disaster zone by the U.S. State Department.

President Bush also flew in generators and lights. They were used for a photo op in the French Quarter, then removed when the President concluded his television pitch. The corpses floating through the Ninth Ward attracted vultures. There was ChoicePoint, our friends from Chapter 1: The Fear. They picked up a contract to identify the bodies using their War on Terror DNA database. In the face of tragedy, America's business community pulled together, lobbying hard to remove the "Davis-Bacon" regulation that guarantees emergency workers receive a minimum prevailing wage.

The Rev. Pat Robertson got a piece of the action. The Federal Emergency Management Agency's Web site encouraged those wanting to help victims to donate to the charities he controls. Within the week, the Navy penned a half-billion-dollar contract for reconstruction work with Halliburton. More would come. Our President, as he does in any emergency situation, announced additional tax cuts. He ordered immediate write-offs for new equipment used in rebuilding. That will likely provide a relief for Halliburton, but the deductions were useless to small New Orleans businesses which had no income to write off. The oil majors, the trillion-dollar babies, won a $700 million tax break. Don't think of hurricanes as horrors, but as opportunities. For the schoolchildren among the refugees, instead of schools, our President promised school "vouchers" on a grand scale. And there was a bonus. Louisiana had been a "purple" state- neither a solid Republican Red nor Democratic Blue. It was up for grabs politically. With a Democratic Senator and a new Democratic Governor, Louisiana was ready to lead the South out of the GOP. Louisiana's big blue Democratic splotch was enclosed within the city below sea level.

On August 29, this major electoral problem for the Republican party was solved. I'm not saying our rulers deliberately let New Orleans drown. But before they would save it, the lifeguards boarding Air Force One had to play a few more holes.
In 1986, I was hired by the City of New Orleans to check out suspicious doings by a corporation called "Entergy." I flew in to meet City Councilman Brod Bagert, who is also New Orleans's top trial lawyer and its most accomplished poet. Over beignets and chicory coffee at the river, he said, "You want to know what this city's about, Mr. Palast? I'll show you."

He drove me to a concrete bunker, banged on the metal door, and greeted a guy named Fishhead, who brought me into the belly of a horrendously loud, gargantuan and astonishing apparatus. "This here, Mr. Palast, is a pump. Forget Bourbon Street. This is all you have to know about New Orleans: We are under water. Below sea level, sir, and the only thing that keeps the river from pouring in over our heads are these pumps. You got that, son?" Outside flowed the Mississippi. America's toilet. The poisoned expectorations of a hundred cities dumped into it or leached from suburban lawns and from factories when no one is looking, come out here in the tap water. A couple years ago, we buried our friend Gary Groesch, aged 50, of some mystery disease. "The City That Care Forgot" is their motto. The City That Everyone Forgot, a Bantustan where the Forgotten can be ignored except for the jazzy minstrel shows for tourists.

I called Bagert four months after the flood. Nearly half the city is still in the dark. The electric company, New Orleans Public Service, "NOPSI," is owned by a holding company, Entergy, the company Bagert, Groesch and I investigated in 1986. Here's what we found. In 1986, the New Orleans company was going broke because of the eye- popping cost of buying wholesale power-four times normal-from a company called Middle South Energy, charges they were passing right on to their captive customers in the city. Middle South is 100% owned and controlled by, you've guessed it, Entergy. But these were the days of government regulation, and government ordered an end to the shell game. Then came deregulation and the siphoning restarted with a vengeance. Busy shuffling loot from pocket to pocket, Entergy had neither the concern nor funds to harden their system against a hurricane. But from the looks of it, and my own review of their accounts, their plan in case of the long-expected flood came down to "turn off the lights and declare their subsidiary bankrupt," which

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