Blackwater founder Erik Prince | PBD Podcast | Ep. 372
Feb 29, 2024
auto_awesome
In a compelling discussion, Erik Prince, the founder of Blackwater and a former U.S. Navy SEAL, delves into his motivations for starting the private military company. He shares insights about Blackwater's early clients and the significant contracts it secured after pivotal events like the bombing of the U.S.S. Cole. Prince contrasts the effectiveness of private military contractors versus traditional military forces and discusses the geopolitical implications of U.S. strategies in Ukraine, along with potential cyber threats from China.
Erik Prince founded Blackwater to provide private security services, including government contracts and CIA operations.
Blackwater differentiated itself through operational efficiency, customer service, and diverse security training services.
Erik Prince advocated for cost-effective private military contractor (PMC) support as an alternative to traditional military expenditures.
Prince critiqued US defense overspending, emphasizing the need for streamlined military interventions and cost-effective approaches.
Prince emphasized strategic diplomacy and avoidance of prolonged military interventions in addressing global conflicts.
Prince highlighted the importance of transparency, cost efficiency, and evidence-based decision-making in shaping national security policies.
Deep dives
Eric Prince's Background and Blackwater's Origins
Eric Prince, a former Navy SEAL, founded Blackwater in 1996 to provide private security. The company serviced government security contracts, including unclassified federal contracts and the CIA's classified contracts. Blackwater focused on personal security missions, keeping individuals safe during 40,000 missions. Prince's family background, which included ties to the Prince family and Betsy DeVos, influenced his journey to create Blackwater.
Business Growth and Training Services
Blackwater initially faced lean revenue in its early years, gradually growing to $35 million annually, with diverse services like aviation support and security training. Prince highlighted a pivotal $7 million naval training contract as a game-changer. The company's approach of operational efficiency and customer service-oriented training sessions differentiated Blackwater in providing security training services.
Contracted Military Services and PMC Model
Blackwater's involvement extended to contracted military services, such as CIA operations in Afghanistan. Eric Prince advocated for a leaner, more efficient model for military deployments, emphasizing cost-effective and specialized private military contractor (PMC) support over traditional military expenses. He recommended using PMCs for targeted functions, stressing the competitive cost and operational benefits they offer.
Critique of US Military Spending and International Involvement
Prince critiqued US government overspending on defense, noting the inefficiencies stemming from major defense contractors. He underscored the need for reduced military expenditures, advocating for more streamlined and cost-effective intervention methods. Prince emphasized the significance of proportional and adaptive responses, cautioning against excessive military commitments akin to past conflicts like Afghanistan.
Views on Global Conflict and Diplomatic Solutions
Regarding ongoing global conflicts like Ukraine, Prince expressed the need for strategic diplomacy and conflict management approaches. He suggested avoiding protracted military interventions in favor of pragmatic defensive strategies. Prince's perspective highlighted the value of strategic restraint and diplomatic solutions to complex geopolitical challenges, encouraging more adaptive, leaner responses to international crises.
Reflections on Political Engagement and Policy Impact
Prince's insights offered a critical lens on political dynamics and policy decision-making, highlighting the challenges of ideological divides and vested interests. He emphasized the importance of transparency, cost efficiency, and strategic foresight in shaping effective national security policies. Prince's pragmatic approach underscored the complexities of geopolitical maneuvering and the imperative of rational, evidence-based decision-making in shaping international engagements.
Unlocking Democracy in Iran
In the context of Iran, a revolutionary plan is envisioned to bring democracy back to the country. This involves empowering the Iranian people, especially the youth, women, and students, and disrupting the current regime. The strategy focuses on utilizing communication tools, supporting the green movement, and mobilizing various sectors of society to challenge the existing authoritarian regime.
Securing Communication and Privacy with Unplugged Phone
The Unplugged phone, developed as a response to tech censorship and privacy threats after the 2020 elections, offers a secure communication platform. The phone prioritizes user privacy by eliminating advertising IDs, providing a robust firewall, and enabling control over features like Wi-Fi, camera, and microphone. It creates a protected digital environment free from extensive tracking and surveillance.
Competition and Ethics in the Private Military Contractor Sector
The evolving landscape of private military contractors (PMCs) is seen as a crucial factor in enhancing security and competitiveness. Encouraging a diversification of PMCs fosters a healthy environment of competition and innovation. A multiplicity of PMCs is advocated to prevent monopolistic control, ensuring ethical practices and optimal security outcomes.
Project Veritas's Espionage Tactics
Project Veritas, known for its undercover investigative journalism, employed unconventional tactics like disguises and covert operations to acquire information. With a focus on revealing hidden truths, Project Veritas utilized various strategies, including utilizing collaborative resources to unveil pertinent information and garner insights within certain environments.
Impact of Media and Information Sharing on Political Movements
Media platforms play a critical role in shaping public opinion and influencing political movements across different countries. The strategic dissemination of information through communication tools, coupled with public engagement, can significantly impact the success of democratic movements. Harnessing the power of media and information sharing is essential in driving transformative change and promoting societal progress.
Future Outlook for PMCs and Government Competition
The future landscape of private military contractors (PMCs) is poised for expansion, emphasizing competition and stringent ethical standards. Encouraging a vibrant PMC sector with diverse players augments security and strategic prowess. With a vision for improved government accountability and effective military operations, a dynamic PMC ecosystem stands to enhance global security and defense capabilities.
Patrick Bet-David sits down one-on-one with Blackwater founder Erik Prince.
Erik Dean Prince is an American businessman, former U.S. Navy SEAL officer, and the founder of the private military company Blackwater. He served as Blackwater's CEO until 2009 and as its chairman until its sale to a group of investors in 2010. Prince heads the private equity firm Frontier Resource Group and was chairman of the Hong Kong-listed Frontier Services Group until 2021.
TIMESTAMPS
3:47 - Erik's background and his family's business success.
11:19 - Erik discusses why he founded Blackwater.
16:27 - Erik explains who Blackwater's first client was.
27:02 - How the United Nation's hypocrisy led to Blackwater's founding.
29:57 - How the bombing of the U.S.S. Cole led to Blackwater's landing a $7 million a year military contract.
34:27 - The difference between a country's nationals fighting for their countries vs hiring a Private Military Company.
41:26 - Was Blackwater better at training soldiers than the U.S. government?
54:27 - Is there an oath soldiers took to train with Blackwater.
55:16 - Erik discusses the CIA's role in the Ukraine vs Russia war.
1:05:18 - Erik explains why he left defense contracting.
1:14:32 - Was Blackwater hired to train soldiers for The Wagner Group?
1:22:52 - Erik claims a Chinese Cyber Attack was behind the AT&T outage.
1:34:31 - Did "Leave the World Behind" predict a future cyber attack on the U.S. electric grid?
1:41:07 - Erik discusses which social and political issues Americans are united on.
1:48:52 - Erik explains who was behind the Cinema Rex fire that started the Iranian revolution.
MINNECT:
Connect one-on-one with the right expert to get the answers you need with Minnect: https://bit.ly/3MC9IXE
Connect with Patrick on Minnect: https://bit.ly/3OoiGIC
Connect with Tom on Minnect: https://bit.ly/3UgJjmR
Connect with Vincent on Minnect: https://bit.ly/47TFCXq
Connect with Adam on Minnect: https://bit.ly/42mnnc4
CHOOSE YOUR ENEMIES WISELY:
Purchase PBD's Book "Choose Your Enemies Wisely": https://bit.ly/41bTtGD
BET-DAVID CONSULTING:
Get best-in-class business advice with Bet-David Consulting: https://bit.ly/40oUafz'
VT.COM:
Visit VT.com for the latest news and insights from the world of politics, business and entertainment: https://bit.ly/472R3Mz
VALUETAINMENT UNIVERSITY:
Visit Valuetainment University for the best courses online for entrepreneurs: https://bit.ly/47gKVA0
TEXT US:
Text “PODCAST” to 310-340-1132 to get the latest updates in real-time!
YOUR NEXT 5 MOVES:
Want to be clear on your next 5 business moves? https://bit.ly/3Qzrj3m
ABOUT US:
Patrick Bet-David is the founder and CEO of Valuetainment Media. He is the author of the #1 Wall Street Journal Bestseller “Your Next Five Moves” (Simon & Schuster) and a father of 2 boys and 2 girls. He currently resides in Ft. Lauderdale, Florida.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
