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From John King's State of the Union, James Carville cites the tobacco industry using Betsy McCaughey to plant a story at The New Republic as an example of the "vast right wing conspiracy" that President Obama is facing. Of course Mary Matalin pretends she has no idea who Betsy McCaughey is.

KING: All right. Let's stay for a moment on the -- because I said we would mention it after the break, and Mary brought up that term that we came to know during the Clinton years -- the Clinton presidential years, the vast right-wing conspiracy. It was on his mind.

Let's listen.

(BEGIN VIDEO CLIP)

GREGORY: Your wife famously talked about the "vast right-wing conspiracy" targeting you.

GREGORY: As you look at this opposition on the right to President Obama, is it still there?

CLINTON: Oh, you bet. Sure it is. It's not as strong as it was because America has changed demographically, but it's as virulent as it was.

(END VIDEO CLIP)

CARVILLE: Again, this week, there was breathtaking proof that there was a vast right-wing conspiracy. It was revealed in Rolling Stone that Philip Morris paid -- paid a woman named Betsy McCaughey to plant a piece in The New Republic, all right?

This was -- this is not -- in other words, this was a tobacco company paying for a piece printed in a so-called respectable magazine.

Now, I don't know that, in The New Republic in 2006, that, oh, gee, the whole thing was, kind of, a mistake after they went through all of that. I don't know if The New Republic has called the president to apologize, but I suspect, as we go through, we're going see more and more instances of this.

And every Clinton person, when the president told us the stuff with Taylor Branch, it felt good. And you know what really made us feel good, is Bill Clinton's doing a whole lot better than The New Republic is. They're sitting there at the CGI, and everybody went "Yes." That was a great moment to be a Clinton person.

MATALIN: I don't even know what he's talking about, but I'll say...

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You remember Betsy McCaughey, don't you? She's the right wing hack who propagated a purposely misleading article in The New Republic that was used to torpedo the Clinton health plan, and more recently the author of the "death panels" lie.

Well, Rolling Stone's Tim Dickinson has a hell of a scoop in their Oct. 1 issue in an article called "The Lie Machine: The Plot to Kill Health Care Reform":

McCaughey's lies were later debunked in a 1995 post-mortem in The Atlantic, and The New Republic recanted the piece in 2006. But what has not been reported until now is that McCaughey's writing was influenced by Phillip Morris, the world's largest tobacco company, as part of a secret campaign to scuttle Clinton's health care reform. (The measure would have been funded by a huge increase in tobacco taxes.) In an internal company memo from March 1994, the tobacco giant detailed its strategy to derail Hillarycare through an alliance with conservative think tanks, front groups and media outlets. Integral to the company's strategy, the memo observed, was an effort to "work on the development of favorable pieces" with "friendly contacts in the media." The memo, prepared by a Phillip Morris executive, mentions only one author by name:

"Worked off-the-record with Manhattan [Editor's note: At the time, McCaughey was a fellow at the Manhattan Institute] and writer Betsy McCaughey as part of the input to the three-part expose in The New Republic on what the Clinton plan means to you. The first part detailed specifics of the plan."

McCaughey did not respond to Rolling Stone's request for an interview.