Friday, March 10, 2006

Carlyle Group : Military-Industrial Hedge Fund

Carlyle Group, the Washington based private equity firm that includes board members former president George H.W. Bush, former Pres. Reagan's Secretary of Defense Frank Carlucci and other privateers from Bechtel ad nauseam just launched a new fund. Carlyle raised $ 1 billion for investments in " U.S.-based infrastructure". The model will be like this. The demand and money comes from institutional investors, such as private pension funds. The supply of investment vechicles will include a lot of those base closing assets that will be available to people on the inside who will have Carlyle do the packaging and marketing.

Carlyle Group has been in the forefront of investment pools for those who wanted to cash in on the war on terror. For example, Carlyle's Iraq investments included the manufacturer of the Humvee and the Bradly Fighing Vechicle. Notably, this holding was sold to a British firm some months ago. Carlyle's portfolio also includes telecommunications, cement production and numerous infrastructure fabricators. They are the classic hedge in war. First be part of the team that blows things up. Second be part of the team that rebuilds. And for you cynics who follow the money. Does this new U.S focus mean that a terrorist attack is imminent? The key to their business model is to have a working control of the executive and legislative branches of government. Respectively, one will push for war and the other will issue checks that include the rebuiling. Q.E.D.

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