"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘Externalizing Cost’

NASA Study: Continued Resource Overconsumption & Extreme Inequality Could Lead To Collapse Of Industrial Civilization Within Decades

In Uncategorized on March 16, 2014 at 5:42 pm

https://i2.wp.com/fc04.deviantart.net/fs71/i/2011/268/d/7/global_warming_by_dc1983-d4ax1f2.jpgOldspeak: “Noting that warnings of ‘collapse’ are often seen to be fringe or controversial, the study attempts to make sense of compelling historical data showing that “the process of rise-and-collapse is actually a recurrent cycle found throughout history.” Cases of severe civilisational disruption due to “precipitous collapse – often lasting centuries – have been quite common…It finds that according to the historical record even advanced, complex civilisations are susceptible to collapse, raising questions about the sustainability of modern civilisation: “The fall of the Roman Empire, and the equally (if not more) advanced Han, Mauryan, and Gupta Empires, as well as so many advanced Mesopotamian Empires, are all testimony to the fact that advanced, sophisticated, complex, and creative civilizations can be both fragile and impermanent.”….the most salient interrelated factors which explain civilisational decline, and which may help determine the risk of collapse today: namely, Population, Climate, Water, Agriculture, and Energy.These factors can lead to collapse when they converge to generate two crucial social features: “the stretching of resources due to the strain placed on the ecological carrying capacity”; and “the economic stratification of society into Elites [rich] and Masses (or “Commoners”) [poor]” These social phenomena have played “a central role in the character or in the process of the collapse,” in all such cases over “the last five thousand years.”Dr Nafeez Ahmed , Executive Director, Institute for Policy Research & Development.

“At this point it’s just physics.  There is nothing controversial about this. There is a finite amount of the  “natural capital” needed to sustain the current iteration of industrial civilization on the earth. industrial civilization is currently extracting that capital at a rate that would require 1.5 to 2 earths to sustain. At some point earth’s biocapacity will be reached and  Population will no longer be supported. Runaway climate change will devastate already fragile water, agricultural and energy systems and displace billions of people. Water and food production will  grind to a halt as temperatures rise & we relentlessly poison and contaminate the water and land we need to grow our food. Every other empire prior to this one has collapsed when they experienced conditions that exist today. We can’t act like we don’t know what coming for much longer. Our Mother won’t allow it. We’re done whether we want to acknowledge it or not.” -OSJ

By Dr Nafeez Ahmed @ The Guardian:

A new study sponsored by Nasa’s Goddard Space Flight Center has highlighted the prospect that global industrial civilisation could collapse in coming decades due to unsustainable resource exploitation and increasingly unequal wealth distribution.

Noting that warnings of ‘collapse’ are often seen to be fringe or controversial, the study attempts to make sense of compelling historical data showing that “the process of rise-and-collapse is actually a recurrent cycle found throughout history.” Cases of severe civilisational disruption due to “precipitous collapse – often lasting centuries – have been quite common.”

The research project is based on a new cross-disciplinary ‘Human And Nature DYnamical’ (HANDY) model, led by applied mathematician Safa Motesharri of the US National Science Foundation-supported National Socio-Environmental Synthesis Center, in association with a team of natural and social scientists. The study based on the HANDY model has been accepted for publication in the peer-reviewed Elsevier journal, Ecological Economics.

It finds that according to the historical record even advanced, complex civilisations are susceptible to collapse, raising questions about the sustainability of modern civilisation:

“The fall of the Roman Empire, and the equally (if not more) advanced Han, Mauryan, and Gupta Empires, as well as so many advanced Mesopotamian Empires, are all testimony to the fact that advanced, sophisticated, complex, and creative civilizations can be both fragile and impermanent.”

By investigating the human-nature dynamics of these past cases of collapse, the project identifies the most salient interrelated factors which explain civilisational decline, and which may help determine the risk of collapse today: namely, Population, Climate, Water, Agriculture, and Energy.

These factors can lead to collapse when they converge to generate two crucial social features: “the stretching of resources due to the strain placed on the ecological carrying capacity”; and “the economic stratification of society into Elites [rich] and Masses (or “Commoners”) [poor]” These social phenomena have played “a central role in the character or in the process of the collapse,” in all such cases over “the last five thousand years.”

Currently, high levels of economic stratification are linked directly to overconsumption of resources, with “Elites” based largely in industrialised countries responsible for both:

“… accumulated surplus is not evenly distributed throughout society, but rather has been controlled by an elite. The mass of the population, while producing the wealth, is only allocated a small portion of it by elites, usually at or just above subsistence levels.”

The study challenges those who argue that technology will resolve these challenges by increasing efficiency:

“Technological change can raise the efficiency of resource use, but it also tends to raise both per capita resource consumption and the scale of resource extraction, so that, absent policy effects, the increases in consumption often compensate for the increased efficiency of resource use.”

Productivity increases in agriculture and industry over the last two centuries has come from “increased (rather than decreased) resource throughput,” despite dramatic efficiency gains over the same period.

Modelling a range of different scenarios, Motesharri and his colleagues conclude that under conditions “closely reflecting the reality of the world today… we find that collapse is difficult to avoid.” In the first of these scenarios, civilisation:

“…. appears to be on a sustainable path for quite a long time, but even using an optimal depletion rate and starting with a very small number of Elites, the Elites eventually consume too much, resulting in a famine among Commoners that eventually causes the collapse of society. It is important to note that this Type-L collapse is due to an inequality-induced famine that causes a loss of workers, rather than a collapse of Nature.”

Another scenario focuses on the role of continued resource exploitation, finding that “with a larger depletion rate, the decline of the Commoners occurs faster, while the Elites are still thriving, but eventually the Commoners collapse completely, followed by the Elites.”

In both scenarios, Elite wealth monopolies mean that they are buffered from the most “detrimental effects of the environmental collapse until much later than the Commoners”, allowing them to “continue ‘business as usual’ despite the impending catastrophe.” The same mechanism, they argue, could explain how “historical collapses were allowed to occur by elites who appear to be oblivious to the catastrophic trajectory (most clearly apparent in the Roman and Mayan cases).”

Applying this lesson to our contemporary predicament, the study warns that:

“While some members of society might raise the alarm that the system is moving towards an impending collapse and therefore advocate structural changes to society in order to avoid it, Elites and their supporters, who opposed making these changes, could point to the long sustainable trajectory ‘so far’ in support of doing nothing.”

However, the scientists point out that the worst-case scenarios are by no means inevitable, and suggest that appropriate policy and structural changes could avoid collapse, if not pave the way toward a more stable civilisation.

The two key solutions are to reduce economic inequality so as to ensure fairer distribution of resources, and to dramatically reduce resource consumption by relying on less intensive renewable resources and reducing population growth:

“Collapse can be avoided and population can reach equilibrium if the per capita rate of depletion of nature is reduced to a sustainable level, and if resources are distributed in a reasonably equitable fashion.”

The NASA-funded HANDY model offers a highly credible wake-up call to governments, corporations and business – and consumers – to recognise that ‘business as usual’ cannot be sustained, and that policy and structural changes are required immediately.

Although the study is largely theoretical, a number of other more empirically-focused studies – by KPMG and the UK Government Office of Science for instance – have warned that the convergence of food, water and energy crises could create a ‘perfect storm’ within about fifteen years. But these ‘business as usual’ forecasts could be very conservative.

Dr Nafeez Ahmed is executive director of the Institute for Policy Research & Development and author of A User’s Guide to the Crisis of Civilisation: And How to Save It among other books. Follow him on Twitter @nafeezahmed

 

An Anarchistic Understanding of the Social Order: Environmental Degradation, Indigenous Resistance, & A Place For The Sciences

In Uncategorized on July 23, 2013 at 4:19 pm

https://andrewgavinmarshall.files.wordpress.com/2013/07/469645_10152443551580234_374786709_o.jpg?w=730Oldspeak: “It is clear that for scientists – and anyone else – interested in addressing major environmental issues, the source of the problem lies in the very structure and function of our dominant modern institutions, at the point of interaction. In short: through states, armed violence, banks and corporations, international organizations, trade agreements and global ‘markets,’ the environment has become a primary target of exploitation and destruction. Resources fuel the wealth and power of the very institutions that dominate the world, and to maintain that power, they engage in incredibly destructive activities with negative consequences for the environment and the human species as a whole. The global environmental crisis is intimately related to the global social and economic crises of wealth inequality and poverty, labour exploitation, and ‘economic growth.’ To address the environmental crisis in a meaningful way, this reality must first be acknowledged. This is how an anarchistic understanding of the environmental crisis facing the world and humanity can contribute to advancing how we deal with these profound issues. For the sciences, the implications are grave: their sources of funding and direction for research are dependent upon the very institutions which are destroying the environment and leading humanity to inevitable extinction (if we do not change course). Advancing an anarchistic approach to understanding issues related to Indigenous repression and resistance to environmental degradation can help provide a framework through which those in the scientific community – and elsewhere – can find new avenues for achieving similar goals: the preservation of the environment and the species.” –Andrew Gavin Marshall

“Original Peoples on every continent have been systematically extirpated and repressed for the past 500 years, to prevent their interference in the global expansion of the ecocidal corptalitarian crypto-facist capitalist system we find ourselves living in.  Yet still they rise. Still despite all the horrors, violence and strife they’ve been subjected to, they stand unbowed, unbossed and unbought, fearlessly defiant of the incalculable wealth, power and control systems that dominate the Earth. They refuse to remain silent as our planet, our mother is destroyed. They have the knowledge, resolve and cosmic connections to understand that this fight is the only one that matters. The “Royal Baby” doesn’t fucking matter. “Justice For Trayvon” doesn’t matter. The “Boston Bomber” on the cover of Rolling Stone doesn’t matter. “Immigration Reform” doesn’t matter. “The Market” doesn’t matter. The survival of our Mother, our species, all other life on Earth and the preservation of the vital resources we need to sustain them are all that matters. The systems around which we organize our civilizations are toxic, unsustainable and inherently dangerous. We have to separate scientific inquiry from profit. Anarchistic, non-violent resistance is an effective means to resist, challenge, incapacitate, and eventually replace our useless and destructive systems. “Profits Before People” doesn’t matter on a dead planet.” –OSJ

By Andrew Gavin Marshall @ Spanda Journal:

FOR ROUGHLY FIVE HUNDRED YEARS, INDIGENOUS peoples have been struggling against the dominant institutions of society, against imperialism, colonialism, exploitation, impoverishment, segregation, racism, and genocide. The struggle continues today under the present world social order and against the dominant institutions of ‘neoliberalism’ and globalization: the state, corporations, financial institutions and international organizations. Indigenous communities continue to struggle to preserve their cultural identities, languages, histories, and the continuing theft and exploitation of their land. Indigenous resistance against environmental degradation and resource extraction represents the most direct source of resistance against a global environmental crisis which threatens to lead the species to extinction. It is here that many in the scientific community have also taken up the cause of resistance against the destruction of the global environment. While Indigenous and scientific activism share similar objectives in relation to environmental issues, there is a serious lack of convergence between the two groups in terms of sharing knowledge, organization, and activism.

Indigenous groups are often on the front lines of the global environmental crisis – at the point of interaction (or extraction) – they resist against the immediate process of resource extraction and the environmental devastation it causes to their communities and society as a whole. The continued repression, exploitation and discrimination against Indigenous peoples have made the struggle – and the potential consequences of failure – significantly more problematic. This struggle has been ongoing for centuries, and as the species heads toward extinction – as it is along our current trajectory – Indigenous peoples will be on the front lines of that process. Many in the scientific community have been struggling for decades to address major environmental issues. Here, the focus is largely on the issue of climate change, and the approach has largely been to work through institutions in order to create enough pressure to reform. Yet, after decades of organizing through academic and environmental organizations, lobbying governments, corporations and international organizations, progress has been slow and often ineffectual, with major international conferences being hyped up but with little concrete results. Indigenous peoples continue to struggle against the dominant institutions while many in the scientific community continue to struggle within the dominant institutions, though their objectives remain similar.

A major problem and disparity becomes clear: Indigenous peoples – among the most repressed and exploited in the world – are left to struggle directly against the most powerful institutions in the world (states and transnational corporations), while many in the sciences – an area of knowledge which has and continues to hold enormous potential to advance the species – attempt to convince those powerful institutions to profit less at exactly the point in history when they have never profited more. Indigenous communities remain largely impoverished, and the scientific community remains largely dependent for funding upon the very institutions which are destroying the environment: states, corporations and international organizations. Major barriers to scientific inquiry and research can thus be established if the institutions feel threatened, if they choose to steer the sciences into areas exclusively designed to produce ‘profitable’ forms of knowledge and technology. As humanity enters a critical stage – perhaps the most critical we have ever faced as a species – it is important to begin to acknowledge, question, and change the institutional contradictions and constraints of our society.

It seems only logical that a convergence between Indigenous and scientific activism, organization, and the sharing of knowledge should be encouraged and facilitated. Indeed, the future of the species may depend upon it. This paper aims to encourage such a convergence by applying an anarchistic analysis of the social order as it relates to environmental degradation, specifically at the point of interaction with the environment (the source of extraction). In classifying this as an anarchistic analysis, I simply mean that it employs a highly critical perspective of hierarchically organized institutions. This paper does not intend to discuss in any detail the issue of climate change, since that issue is largely a symptom of the problem, which at its source is how the human social order interacts directly with the environment: extraction, pollution, degradation, exploitation and destruction at the point of interaction.

This analysis will seek to critically assess the actions and functions of states, corporations, international organizations, financial institutions, trade agreements and markets in how they affect the environment, primarily at the point of interaction. It is also at this point where Indigenous peoples are taking up the struggle against environmental degradation and human extinction. Through an anarchistic analysis of Indigenous repression and resistance at the point of interaction between the modern social order and the environment (focusing primarily on examples from Canada), this paper hopes to provide encouragement to those in the scientific community seeking to address environmental issues to increase their efforts in working with and for the direct benefit of Indigenous peoples. There exists a historical injustice which can and must be rectified: the most oppressed and exploited peoples over the past five hundred years of a Western-dominated world are on the front lines of struggling for the survival of the species as a whole. Modern science – which has done so much to advance Western ‘civilization’ – can and should make Indigenous issues a priority, not only for their sake, but for the species as a whole. Indeed, it is a matter of survival for the sciences themselves, for they will perish with the species. An anarchistic analysis of the social order hopes to encourage a convergence between Indigenous and scientific knowledge and activism as it relates to resolving the global environmental crisis we now face.

GLOBAL CORPORATE POWER

Corporations are among the most powerful institutions in the world. Of the top 150 economies in 2010, 58% were corporations, with companies like Wal-Mart, Royal Dutch Shell, ExxonMobil, and BP topping the charts[1]. According to Fortune’s Global 500 list published in 2012, the top ten corporations in the world were: Royal Dutch Shell, ExxonMobil, Wal-Mart, BP, Sinopec Group, China National Petroleum, State Grid, Chevron, ConocoPhillips, and Toyota Motor[2]. The Global 500 corporations posted record revenues for 2011 at USD 29.5 trillion, up 13.2% from the previous year. Eight of the top ten conglomerates were in the energy sector, with the oil industry alone generating USD 5 trillion in sales, approximately 17% of the total sales of the Global 500. The second largest sector represented in the Global 500 was commercial banks, followed by the auto industry[3].

A scientific study conducted by the Swiss Federal Institute of Technology in Zurich analyzed the ‘network of control’ wielded through 43,000 transnational corporations (TNCs), identifying “a relatively small group of companies, mainly banks, with disproportionate power over the global economy.” The researchers identified a ‘core’ of 1,318 companies which owned roughly 80% of the global revenues for the entire network of 43,000 TNCs. Above the core, the researchers identified a ‘super-entity’ of 147 tightly-knit corporations – primarily banks and financial institutions – collectively owning each other’s shares and 40% of the wealth in the total network. One researcher commented, “In effect, less than 1 per cent of the companies were able to control 40 percent of the entire network[4].”

Writing in the Financial Times, a former US Treasury Department official, Robert Altman, referred to financial markets as “a global supra-government,” explaining:

They oust entrenched regimes where normal political processes could not do so. They force austerity, banking bail-outs and other major policy changes. Their influence dwarfs multilateral institutions such as the International Monetary Fund. Indeed, leaving aside unusable nuclear weapons, they have become the most powerful force on earth[5].

The “global supra-government” of financial markets push countries around the world into imposing austerity measures and structural reforms, which have the result of benefiting the “super-entity” of global corporate power. The power and wealth of these institutions have rapidly accelerated in the past three decades of neoliberal ‘reforms’ promoting austerity, liberalization, deregulation, privatization and financialization. Neoliberal ideology was politically championed by Ronald Reagan in the United States and Margaret Thatcher in Great Britain, but was largely imposed upon the so-called ‘Third World’ (Latin America, Asia, and Africa) through major international organizations like the World Bank and the IMF. The results of this massive transfer of wealth and power to an increasingly connected and small fraction of the world’s population have been devastating for humanity and the world as a whole. This process guided by neoliberal dogma has been most often referred to as ‘globalization.’

As the 1980s debt crisis gripped the ‘Third World,’ the IMF and World Bank came to the ‘rescue’ with newly designed loan agreements called ‘Structural Adjustment Programs’ (SAPs). In return for a loan from these institutions, countries would have to adhere to a set of rigid conditions and reforms, including austerity measures (cutting public spending), the liberalization of trade, privatization, deregulation, and currency devaluation[6]. The United States controls the majority shares of both the World Bank and IMF, while the US Treasury Department and Federal Reserve work very closely with the IMF and its staff[7]. If countries did not adhere to IMF and World Bank ‘conditions,’ they would be cut off from international markets, since this process was facilitated by “unprecedented co-operation between banks from various countries under the aegis of the IMF[8].” The conditions essentially opened up the borrowing countries to economic imperialism by the IMF, World Bank, and transnational corporations and financial institutions, which were able to gain access and control over the resources and labour markets of poor countries. Thus, the 1980s has been known as the “lost decade of development,” as many ‘Third World’ countries became poorer between 1980 and 1990[9]. Joseph Stiglitz, a former chief economist at the World Bank, wrote that, “such conditions were seen as the intrusion by the new colonial power on the country’s own sovereignty[10].”

The structural adjustment programs imposed upon the Third World devastated the poor and middle classes of the borrowing countries, often resulting in mass protests against austerity[11]. In fact, between 1976 and 1992, there were 146 protests against IMF- sponsored austerity measures in 39 different countries, including demonstrations, strikes and riots. The governments, in response, would often violently repress protests[12]. The government elites were often more integrated with and allied to the powerful institutions of the global economy, and would often act as domestic enforcers for the demands of international banks and corporations. For many countries imposing structural adjustment programs around the world, authoritarian governments were common[13]. The IMF and World Bank structural adjustment programs also led to the massive growth of slums around the world, to the point where there are now over a billion people living in urban slums (approximately one out of every seven people on earth)[14].

Further, the nations of the Third World became increasingly indebted to the powerful financial institutions and states of the industrial world with the more loans they took. The wealthy elites within the Third World plunder the domestic wealth of their countries in cooperation with global elites, and send their money into Western banking institutions (as ‘capital flight’) as their domestic populations suffer in poverty. The IMF and World Bank programs helped facilitate capital flight through the deregulation and ‘liberalization’ of markets, as well as through the opening up of the economies to unhindered exploitation. Some researchers recently compared the amount of money in the form of aid and loans going into Africa compared to that coming leaving Africa in the form of capital flight, and found that “sub-Saharan Africa is a net creditor to the rest of the world by a substantial margin.” The external debt owed by 33 sub-Saharan African countries to the rest of the world in 2008 stood at USD 177 billion. Between 1970 and 2008, capital flight from those same 33 African countries amounted to USD 944 billion. Thus, “the rest of the world owes more to these African countries than they owe to the rest of the world[15].”

The neoliberal ideology of ‘profit before people’ – enforced by the dominant states, corporations, banks and international organizations – has led to a world of extreme inequality, previously established by centuries of empire and colonialism, and rapidly accelerated in the past three decades. As of 2004, one in every three human deaths was due to poverty-related causes. In the twenty years following the end of the Cold War, there were approximately 360 million preventable deaths caused by poverty-related issues. Billions of people go hungry, lack access to safe drinking water, adequate shelter, medicine, and electricity. Nearly half of humanity – approximately 3.1 billion people as of 2010 – live below the USD 2.50/day poverty line. It would take roughly USD 500 billion – approximately 1.13% of world income (or two-thirds of the US military budget) – to lift these 3.1 billion people out of extreme poverty. The top 1% own 40% of the world’s wealth, while the bottom 60% hold less than 2% of the world’s wealth. As Thomas Pogge wrote, “we are now at the point where the world is easily rich enough in aggregate to abolish all poverty,” but we are “choosing to prioritize other ends instead.” Roughly 18 million people die from poverty-related causes every year, half of whom are children under the age of five. Pogge places significant blame for these circumstances upon the “global institutional arrangements that foreseeably and avoidably increase the socioeconomic inequalities that cause poverty to persist […] [policies which] are designed by the more powerful governments for the benefit of their most powerful industries, corporations, and citizens[16].”

In 2013, Oxfam reported that the fortunes made by the richest 100 people in the world over the course of 2012 (USD 240 billion) would have been enough to lift the world’s poorest people out of poverty four times over. An Oxfam executive, Barbara Stocking, noted that this type of extreme wealth – which saw the world’s richest 1% increase their income by 60% in the previous twenty years – is “economically inefficient, politically corrosive, socially divisive and environmentally destructive […] We can no longer pretend that the creation of wealth for few will inevitably benefit the many – too often the reverse is true[17].” A study by the Tax Justice Network in 2012 found that the world’s superrich had hidden between USD 21 and 32 trillion in offshore tax havens, meaning that inequality was “much, much worse than official statistic show,” and that “for three decades extraordinary wealth has been cascading into the offshore accounts of a tiny number of superrich,” with the top 92,000 of the world’s superrich holding at least USD 10 trillion in offshore accounts[18].

THE ENVIRONMENTAL IMPACT OF INEQUALITY

The human social order – dominated by states, corporations, banks and international organizations – has facilitated and maintained enormous inequality and poverty around the world, allowing so few to control so much, while the many are left with little. This global social and economic crisis is exacerbated by the global environmental crisis, in which the same institutions that dominate the global social order are simultaneously devastating the global environment to the point where the future of the species hangs in the balance.

Just as the dominant institutions put ‘profit before people,’ so too do they put profit before the environment, predicating human social interaction with the environment on the ideology of ‘markets’: that what is good for corporations will ultimately be good for the environment. Thus, the pursuit of ‘economic growth’ can continue unhindered – and in fact, should be accelerated – even though it results in massive environmental degradation through the processes of resource extraction, transportation, production and consumption[19].

Trading arrangements between the powerful rich nations and the ‘periphery’ poor nations allow for the dominant institutions to exploit their economic and political influence over weaker states, taking much more than they give[20]. These trading relationships effectively allow the rich countries to offshore (or export) their environmental degradation to poor countries, treating them as exploitable resource extraction sources. As the resources of poor nations are extracted and exported to the rich nations, the countries are kept in poverty (with the exception of their elites who collude with the powerful countries and corporations), and the environmental costs associated with the high consumption societies of the industrial world are ultimately off-shored to the poor countries, at the point of interaction[21]. Thus, international trade separates the societies of consumption from the effects of extraction and production, while the poor nations are dependent upon exports and exploiting their cheap labour forces[22]. This process has been termed ecological unequal exchange[23].

Between the mid-1970s and mid-1990s, the majority of the world’s non-renewable resources were transferred from poor to rich nations, accelerating in volume over time (due to technological advancements), while decreasing in costs (to the powerful nations). Thus, between 1980 and 2002, the costs of resource extraction declined by 25% while the volume of resource extraction increased by more than 30%. Environmentally destructive processes of resource extraction in mining and energy sectors have rapidly accelerated over the past few decades, resulting in increased contamination of soils, watersheds and the atmosphere. Negative health effects for local populations accelerate, primarily affecting Indigenous, poor and/or migrant populations, who are subjected to excessive pollutants and industrial waste at nearly every part of the process of extraction, production and transportation of resources and goods[24].

In an examination of 65 countries between 1960 and 2003, researchers found that the rich countries “externalized” the environmentally destructive consequences of resource over-use to poor, periphery nations and populations, thus “assimilating” the environments of the less-developed nations into the economies of the powerful states, disempowering local populations from having a say in how their resources and environments are treated[25]. Rich societies consume more than can be sustained from their own internal resource wealth, and thus, they must “appropriate” resource wealth from abroad by ‘withdrawing’ the resources in environmentally destructive (and thus, more economically ‘efficient’) ways. Apart from ecologically destructive ‘withdrawals,’ the rich nations also facilitate ecologically destructive ‘additions,’ in the form of pollution and waste which cause environmental and health hazards for the poor societies. This is facilitated through various trading arrangements (such as the development of Export Processing Zones), consisting of minimal to no environmental regulations, cheap labour and minimal restrictions on corporate activities[26].

While Japan and Western Europe were able to reduce the amount of pollutants and ‘environmental additions’ they made within their own societies between 1976 and 1994, they accelerated their ‘additions’ in waste and pollutants to the poor countries with which they traded, “suggesting a progressive off-shoring over the period onto those peripheral countries” not only of labour exploitation, but of environmental degradation[27]. Foreign Direct Investment (FDI) by transnational corporations has been linked to extensive environmental hazards within the countries in which they are ‘investing,’ including growth in water pollution, infant mortality, pesticide use, and the use of chemicals which are often banned in the rich nations due to high toxicity levels and dangers to health and the environment, and greater levels of carbon dioxide emissions. Indeed, between 1980 and 2000, the total anthropogenic CO2 emissions from the rich countries increased by 21%, while over the same period of time in the poor countries it more than doubled. While forested areas in the rich nations increased by less than 1% between 1990 and 2005, they declined by 6% over the same period of time in poor countries, contributing to soil erosion, desertification, climate change and the destruction of local and regional ecosystems[28].

According to an analysis of 268 case studies of tropical forest change between 1970 and 2000, researchers found that deforestation had shifted from being directed by states to being directed and implemented by corporations and ‘economic’ interests across much of Latin America, Africa, and Asia. This was largely facilitated by the IMF and World Bank agreements which forced countries to reduce their public spending, and allowed for private economic interests to obtain unprecedented access to resources and markets. The rate of deforestation continued, it simply shifted from being state-led to “enterprise driven[29].”

Using a sample of some sixty nations, researchers found that IMF and World Bank Structural Adjustment Programs (SAPs) were associated with higher levels of deforestation than in countries which did not sign the SAP agreements, as they allowed rich nations and corporations to “externalize their forest loss” to poor nations. Further, “economic growth” as defined by the World Bank and IMF was related to increased levels of deforestation, leading the researchers to acknowledge that, “economic growth adversely impacts the natural environment[30].” World Bank development loans to countries (as separate from structural adjustment loans) have also been linked to increased rates of deforestation in poor nations, notably higher rates than those which exist in countries not receiving World Bank loans[31].

Military institutions and armed warfare also have significant environmental impacts, not simply by engaging in wars, but simply by the energy and resources required for the maintenance of large military structures. As one US military official stated in the early 1990s, “We are in the business of protecting the nation, not the environment[32].” While the United States is the largest consumer of energy among nations in the world, the Pentagon is “the world’s largest [institutional] consumer of energy[33].” The combination of US tanks, planes and ships consume roughly 340,000 barrels of oil per day (as of 2007)[34]. Most of the oil is consumed by the Air Force, as jet fuel accounted for roughly 71% of the entire military’s oil consumption[35].

Nations with large militaries also use their violent capabilities “to gain disproportionate access to natural resources[36].” Thus, while the US military may be the largest single purchaser and consumer of energy in the world, one of its primary functions is to secure access to and control over energy resources. In an interview with two McKinsey & Company consultants, the Pentagon’s first-ever assistant secretary of defense for operational energy and programs, Sharon E. Burke, stated bluntly that, “My role is to promote the energy security of our military operations,” including by increasing the “security of supply[37].”

In a study of natural resource extraction and armed violence, researchers found that, “armed violence is associated with the extraction of many critical and noncritical natural resources, suggesting quite strongly that the natural resource base upon which industrial societies stand is constructed in large part through the use and threatened use of armed violence.” Further, when such armed violence is used in relation to gaining access to and control over natural resources, “it is often employed in response to popular protest or rebellion against these activities.” Most of this violence is carried out by the governments of poor nations, or by mercenaries or rebels, which allows for distancing between the rich nations and corporations which profit from the plundering of resources from the violent means of gaining access to them. After all, the researcher noted, “other key drivers of natural resource exploitation, such as the IMF, World Bank, WTO, and global marketplace, cannot, on their own, guarantee core nation access to and control over vital natural resources[38].” Perhaps unsurprisingly, then, the United States – and other powerful nations – and the major arms companies within them are the largest arms dealers in the world[39].

It is clear that for scientists – and anyone else – interested in addressing major environmental issues, the source of the problem lies in the very structure and function of our dominant modern institutions, at the point of interaction. In short: through states, armed violence, banks and corporations, international organizations, trade agreements and global ‘markets,’ the environment has become a primary target of exploitation and destruction. Resources fuel the wealth and power of the very institutions that dominate the world, and to maintain that power, they engage in incredibly destructive activities with negative consequences for the environment and the human species as a whole. The global environmental crisis is intimately related to the global social and economic crises of wealth inequality and poverty, labour exploitation, and ‘economic growth.’ To address the environmental crisis in a meaningful way, this reality must first be acknowledged. This is how an anarchistic understanding of the environmental crisis facing the world and humanity can contribute to advancing how we deal with these profound issues. For the sciences, the implications are grave: their sources of funding and direction for research are dependent upon the very institutions which are destroying the environment and leading humanity to inevitable extinction (if we do not change course). Advancing an anarchistic approach to understanding issues related to Indigenous repression and resistance to environmental degradation can help provide a framework through which those in the scientific community – and elsewhere – can find new avenues for achieving similar goals: the preservation of the environment and the species.

INDIGENOUS REPRESSION AND RESISTANCE

Indigenous peoples in the Americas have been struggling against colonialism, exploitation, segregation, repression and even genocide for over 500 years. While the age of formal colonial empires has passed, the struggle has not. Today, Indigenous peoples struggle against far more powerful states than ever before existed, transnational corporations and financial institutions, international organizations, so-called “free trade” agreements and the global ‘marketplace.’ In an increasingly interconnected and globalized world, the struggle for Indigenous peoples to maintain their identity and indeed, even their existence itself, has been increasingly globalizing, but has also been driven by localized actions and movements.

Focusing upon Indigenous peoples in Canada, I hope to briefly analyze how Indigenous groups are repressed, segregated and exploited by the dominant institutions of an incredibly wealthy, developed, resource-rich and ‘democratic’ nation with a comparably ‘good’ international reputation. Further, by examining Indigenous resistance within Canada to the destruction of the natural environment, I hope to encourage scientists and other activists and segments of society who are interested in environmental protection to reach out to Indigenous communities, to share knowledge, organizing, activism, and objectives.

A LEGACY OF COLONIALISM

Historically, the Canadian government pursued a policy of ‘assimilation’ of Indigenous peoples for over a century through ‘Indian residential schools,’ in what ultimately amounted to an effective policy of “cultural genocide.” In 1920, Canada’s Deputy Minister of Indian Affairs Duncan Campbell Scott bluntly explained: “I want to get rid of the Indian problem […] Our object is to continue until there is not a single Indian in Canada that has not been absorbed into the body politics and there is no Indian question, and no Indian Department[40].”

The segregation, repression and exploitation of Indigenous communities within Canada is not a mere historical reality, it continues to present day. Part of the institutional repression of Indigenous peoples is the prevalence of what could be described as ‘Third World’ conditions within a ‘First World’ nation. Indigenous communities within Canada lack access to safe drinking water at a much higher rate than the general population[41]. Indigenous people and communities in Canada also face much higher levels of food insecurity, poverty, unemployment, poor housing and infant mortality than the rest of the population[42]. Accounting for roughly 4% of the population of Canada (approximately 1.2 million people as of 2006), Indigenous peoples also face higher rates of substance abuse, addiction, and suicide[43].

Indigenous people – and especially women – make up a disproportionate percentage of the prison population[44]. Further, as Amnesty International noted, “Indigenous women [in Canada] are five to seven times more likely than other women to die as a result of violence[45].” The Native Women’s Association of Canada has documented roughly 600 cases of missing or murdered indigenous women in Canada, more than half of which have occurred since 2000, while Human Rights Watch reported that the Royal Canadian Mounted Police (RCMP) in northern British Columbia had “failed to properly investigate the disappearance and apparent murders of [indigenous] women and girls in their jurisdiction[46].”

RESOURCE EXTRACTION, ENVIRONMENTAL DEGRADATION, AND INDIGENOUS PEOPLES

Industries seeking to develop land and extract resources are increasingly turning to Indigenous territories to develop and seek profits on the land and environment upon which such communities are so often dependent for survival. At the point of interaction with the environment, Indigenous peoples are left to struggle with the damaging environmental and health consequences caused by state and corporate interests extracting resources and wealth from the land and environment.

The Alberta tar sands (or oil sands) is a primary example of this process. Many environmental, indigenous and human rights organizations consider the tar sands development as perhaps “the most destructive industrial project on earth.” The United Nations Environmental Programme identified the project as “one of the world’s top 100 hotspots of environmental degradation.” The dense oil in the tar sands (diluted bitumen) has to be extracted through strip mining, and requires enormous amounts of resources and energy simply to extract the reserves. It has been documented that for every one barrel of oil processed, three barrels of water are used, resulting in the creation of small lakes (called ‘tailing ponds’), where “over 480 million gallons of contaminated toxic waste water are dumped daily.” These lakes collectively “cover more than 50 square kilometres (12,000 acres) and are so extensive that they can be seen from space.” The processing of the oil sands creates 37% more greenhouse gas emissions than the extraction and processing of conventional oil[47].

While the United States consumes more oil than anywhere else on earth, Canada is the main supplier of foreign oil to the United States, exporting roughly 1.5 million barrels per day to the US (in 2005), approximately 7% of the daily consumption of oil in the US. The crude bitumen contained in the tar sands has been estimated at 1.7 trillion barrels, lying underneath an area within Alberta which is larger than the entire state of Florida and contains over 140,000 square km of boreal forest. In 2003, the United States Department of Energy officially acknowledged the reserves of crude bitumen in the Alberta tar sands, and elevated Canada’s standing in world oil markets from the 21st most oil-rich nation on earth to the 2nd, with only Saudi Arabia surpassing[48].

Alberta’s tar sands have attracted the largest oil companies on earth, including Royal Dutch Shell, ExxonMobil, BP, and Total S.A. Local indigenous communities thus not only have to struggle against the devastating environmental, health and social consequences caused by the tar sands development, but they also have to struggle against the federal and provincial governments, and the largest corporations on earth. The Athabasca River (located near the tar sands development) has been depleted and polluted to significant degrees, transforming the region “from a pristine environment rich in cultural and biological diversity to a landscape resembling a war zone marked with 200-foot-deep pits and thousands of acres of destroyed boreal forests.” Indigenous peoples have been raising concerns over this project for years[49].

Disproportionate levels of cancers and other deadly diseases have been discovered among a local Indigenous band, the Fort Chipewyan in Athabasca. These high levels of cancers and diseases are largely the result of the enormous amounts of land, air, and water pollution caused by the tar sands mining[50]. One Indigenous leader in Fort Chipewyan has referred to the tar sands development as a “slow industrial genocide[51].” As pipelines are planned to be expanded across Canada and the United States to carry tar sands oil, this will have devastating impacts for “indigenous communities not only in Canada, but across the continent[52].”

Between 2002 and 2010, the pipeline network through Alberta experienced a rate of oil spills roughly sixteen times higher than in the United States, likely the result of transporting diluted bitumen (DilBit), which has not been commonly transported through the pipelines until recent years. In spite of the greater risks associated with transporting DilBit, the US agency responsible for overseeing the country’s pipelines decided – in October of 2009 – to relax safety regulations regarding the strength of pipelines. In July of 2010, a ruptured Enbridge pipeline in Michigan spilled 800,000 gallons of DilBit, devastating the local communities in what the government referred to as the “worst oil spill in Midwestern history.” In July of 2011, an Exxon pipeline spilled 42,000 gallons of DilBit into the Yellowstone River in Montana[53].

IDLE NO MORE: THE RISE OF INDIGENOUS RESISTANCE

In 2009, the Canadian Ministry of Indian Affairs and Northern Development announced the Federal Framework for Aboriginal Economic Development which sought to “improve the participation” of Indigenous people “in the Canadian economy,” primarily by seeking “to unlock the full economic potential of Aboriginal Canadians, their communities, and their businesses[54].” An updated report on the Framework in 2012 reaffirmed the intent “to modernize the lands and resource management regimes on reserve land in order to increase and unlock the value of Aboriginal assets[55].” As John Ibbitson wrote in the Globe and Mail, “businesses that want to unlock the potential of reserves, from real estate development to forestry and mining, need the legal certainty that a property regime makes possible[56].”

In late 2012, Canadian Prime Minister Stephen Harper’s Conservative Party introduced an omnibus Budget Bill (C-45) which amended several aspects of the Indian Act (without proper consultations with Indigenous groups). Bill C-45 also moved forward to “unlock” barriers to resource extraction, environmental degradation, and corporate profits with an amendment to the Navigable Waters Act, which dramatically reduced the number of protected lakes and rivers in Canada from 40,000 to 97 lakes, and from 2.5 million to 63 rivers[57].

Following the introduction of Bill C-45 to the Canadian Parliament, a group of four Indigenous women in the province of Saskatchewan held a “teach-in” to help increase awareness about the Bill, quickly followed by a series of rallies, protests and flash mobs where Indigenous activists and supporters engaged in ‘round dances’ in shopping malls, organized through social media networks like Twitter and Facebook. This sparked what became known as the ‘Idle No More’ movement, and on December 10, 2012, a National Day of Action took place, holding multiple rallies across the country. The immediate objectives of the Idle No More movement were to have the government “repeal all legislation that violates treaties [with Indigenous peoples], including those that affect environmental regulations,” such as Bill C-45 and the previous omnibus Bill C-38. The longer-term objectives of the movement were to “educate and revitalize aboriginal peoples, empower them and regain sovereignty and independence[58].”

Pamela Palmater, a spokesperson for Idle No More and a Ryerson University professor noted that Indigenous people in Canada were opposing Bill C-45 “not just because it impacts their rights, but also because we know that it impacts the future generations of both treaty partners,” referring to both Indigenous and non-Indigenous Canadians. “The question,” she added, “really should be whether Canadians will rise to protect their children’s futures alongside First Nations[59].”

Theresa Spence, an Indigenous chief from a northern Ontario community (Attawapiskat) went on a hunger strike for 44 days to support Idle No More and raise awareness about a serious housing crisis in her community. Spence only ended her hunger strike upon being hospitalized and placed on an IV drip[60]. Her community of Attawapiskat had been experiencing a major housing crisis for a number of years, and in 2011, a state of emergency was declared in response to the fact that for over two years, many of the community’s 1,800 residents were “living in makeshift tents and shacks without heat, electricity or indoor plumbing.” James Anaya, a United Nations human rights expert expressed his “deep concern about the dire social and economic condition” of the Attawapiskat community to the Canadian government, which reflected a situation “akin to third world conditions[61].” The Conservative government of Stephen Harper (which came to power in 2006) blamed the crisis on the internal handling of funds within Attawapiskat, claiming that the government provided CAD 90 million in funding for the community since 2006. However, analysis of the funds revealed that only CAD 5.8 million in funding had gone toward housing over the course of five years. Meanwhile, estimates put the necessary funds to resolve the housing crisis alone at CAD 84 million[62]. The former Minister for Aboriginal Affairs acknowledged that the government had known about the housing crisis for years, saying that it “has been a slow-moving train wreck for a long time[63].”

In 2005, the community of Attawapiskat had signed a contract with the international mining conglomerate De Beers to develop a diamond mine 90 km near their community. The mine officially opened in 2008, projecting a 12-year contribution to the Ontario economy of CAD 6.7 billion[64]. In 2005, De Beers dumped its sewage sludge into the Attawapiskat community’s lift station, causing a sewage backup which flooded many homes and exacerbated an already-developing housing crisis, followed by another sewage backup potentially caused by De Beers in 2008[65]. Afterward, the company donated trailers to the community to serve as “short-term emergency shelters,” yet they remained in place even four years later[66].

As the Idle No More movement took off in late 2012 and early 2013, members of the Attawapiskat community undertook road blockades leading to the De Beers mine. The company sought a legal injunction against the protesters, and the blockade was ended just as a large number of police were headed to the community to “remove the barricades.” After successfully blocking the mine from properly functioning for nearly twenty days, the company announced that it was considering taking legal action against the protesters[67].

The Idle No More mission statement called “on all people to join in a revolution which honors and fulfills Indigenous sovereignty which protects the land and water […] Colonization continues through attacks to Indigenous rights and damage to the land and water. We must repair these violations, live the spirit and intent of the treaty relationship, work towards justice in action, and protect Mother Earth.” The movement’s manifesto further declared that, “the state of Canada has become one of the wealthiest countries in the world by using the land and resources. Canadian mining, logging, oil and fishing companies are the most powerful in the world due to land and resources. Some of the poorest First Nations communities (such as Attawapiskat) have mines or other developments on their land but do not get a share of the profit[68].” As Pamela Palmater noted, Idle No More was unique, “because it is purposefully distances from political and corporate influence. There is no elected leader, no paid Executive Director, and no bureaucracy or hierarchy which determines what any person or First Nation can and can’t do […] This movement is inclusive of all our peoples[69].”

The Athabasca Chipewyan Indigenous band which had been struggling for years against the tar sands development were further mobilized with the eruption of Idle No More onto the national scene, including by establishing a blockade on Highway 63 leading to the tar sands development[70]. As Chipewyan chief Allan Adam noted, “The way I look at it, the First Nations people are going to cripple this country if things don’t turn out […] Industry is going to be the target.” He also added: “We know for a fact that industry was the one that lobbied government to make this regulatory reform[71].” Indeed, this was no hyperbole.

THE STATE IN SERVICE TO CORPORATIONS

Greenpeace obtained – through access to information laws – a letter sent to the Canadian government’s Environment minister and Natural Resources minister dated December of 2011, written by a group called the Energy Framework Initiative (EFI), representing the Canadian Association of Petroleum Producers, the Canadian Energy Pipeline Association, the Canadian Fuels Association, and the Canadian Gas Association. The letter sought “to address regulatory reform for major energy industries in Canada” in order to advance “both economic growth and environmental performance.” It specifically referenced six laws that it wanted amended, including the National Energy Board Act, the Canadian Environmental Assessment Act, the Fisheries Act, the Species at Risk Act, Migratory Birds Convention Act, and the Navigable Waters Protection Act. Referring to many of these laws as “outdated,” the letter criticized environmental legislation as “almost entirely focused on preventing bad things from happening rather than enabling responsible outcomes[72].”

Less than a month after receiving the letter, the Canadian Natural Resources Minister Joe Oliver lashed out at activists opposing the construction of Enbridge’s Northern Gateway pipeline shipping oil from Alberta’s tar sands to the B.C. coast for shipment to Asia, stating, “Unfortunately, there are environmental and other radical groups that would seek to block this opportunity to diversify our trade… Their goal is to stop any major project no matter what the cost to Canadian families in lost jobs and economic growth. No forestry. No mining. No oil. No gas. No more hydro-electric dams.” Oliver went on, saying that such “radical groups” were threatening “to hijack our regulatory system to achieve their radical ideological agenda,” and accused them of using funding from “foreign special interest groups[73].”

Documents from the energy industry revealed that big corporations advised the Harper government not to amend the many environmentally related acts separately, but to employ “a more strategic omnibus legislative approach,” which resulted in the two omnibus bills over 2012, Bills C-38 and C-45, which included “hundreds of pages of changes to environmental protection laws […] weakening rules that protect water and species at risk, introducing new tools to authorize water pollution, as well as restricting public participation in environmental hearings and eliminating thousands of reviews to examine and mitigate environmental impacts of industrial projects[74].” The energy industry got virtually everything it asked for in the two omnibus bills, including – as their letter to the Harper government suggested – reforming “issues associated with Aboriginal consultation[75].”

Documents from Environment Canada showed how the minister informed a group of energy industry representatives that the development of pipelines were “top-of-mind” as the government pursued “the modernization of our regulatory system.” When the new legislation passed, the Canadian Environmental Assessment Agency announced that it has cancelled roughly 3,000 environmental assessments, including 250 reviews related to pipeline projects[76]. Other documents showed that at the same time the minister was informing energy corporations that he was serving their interests, he was to inform Indigenous leaders that any “changes to the government’s environmental assessment or project approvals regime” were “speculative at this point” and that they would “respect our duties toward Aboriginal peoples[77].”

As the Harper government became the primary lobbyist for the Alberta tar sands, documents showed how the government compiled a list of “allies” and “adversaries” in its public relations campaign, referring to energy companies, Environment Canada and the National Energy Board as “allies,” and the media, environmental and Indigenous groups as “adversaries[78].” The Canadian government even ran an “outreach program” where diplomats would attempt to secure support among American journalists for the Keystone XL pipeline project – taking oil from the Alberta tar sands to the Gulf Coast in the United States[79].

As the Canadian government revised its anti-terrorism strategy in early 2012, it listed “eco-extremists” alongside white supremacists as a threat to national security[80]. A review of Canadian security documents from the national police force (RCMP) and the Canadian intelligence agency (CSIS) revealed that the government saw environmental activism such as blockades of roads or buildings as “forms of attack” and “national security threats.” Greenpeace was identified as “potentially violent,” as it had become “the new normal now for Canada’s security agencies to watch the activities of environmental organizations,” noted one analyst[81].

IDLE NO MORE AND OIL PIPELINES

The government of Canada acknowledged in early 2013 that it expected – over the following decade – that there would be “a huge boom in Canadian natural resource projects,” potentially worth CAD 600 billion, which is foreseen to be taking place “on or near” Indigenous lands. One Indigenous chief in Manitoba warned that the Idle No More movement “can stop Prime Minister Harper’s resource development plan and his billion-dollar plan to develop resources on our ancestral territory. We have the warriors that are standing up now, that are willing to go that far[82].”

In an official meeting between the Harper government and the Assembly of First Nations in January of 2013, Indigenous ‘leaders’ presented a list of demands which included ensuring there was a school in every indigenous community, a public inquiry into the missing and murdered Indigenous women, as well as several other very ‘moderate’ reforms. For the government, the objectives were much more specific, as internal documents revealed, written in preparation for Harper’s meeting with Indigenous leaders. As one briefing memo stated, the government was working towards “removing obstacles to major economic development opportunities[83].”

For the Idle No More movement, which does not consider itself to be ‘represented’ by the Assembly of First Nations leaders, the objective is largely “to put more obstacles up,” as Martin Lukacs wrote in the Guardian. Indigenous peoples, he noted, “are the best and last defense against this fossil fuel scramble,” specifically in mobilizing opposition to “the three-fold expansion of one of the world’s most carbon-intensive projects, the Alberta tar sands[84].”

In March of 2013, an alliance of Indigenous leaders from across Canada and the United States announced that they were “preparing to fight proposed new pipelines in the courts and through unspecified direct action,” specifically referring to the Northern Gateway, Keystone XL and Kinder Morgan pipeline projects. One Indigenous leader at the formation of the alliance warned, “We’re going to stop these pipelines one way or another.” Another Indigenous leader commented: “We, as a nation, have to wake up […] We have to wake up to the crazy decision that this government’s making to change the world in a negative way[85].”

The territories of the ten allied Indigenous groups “are either in the crude-rich tar sands or on the proposed pipeline routes.” One Indigenous leader from northern British Columbia referred to the Canadian government, stating, “They’ve been stealing from us for the last 200 years […] now they’re going to destroy our land? We’re not going to let that happen […] If we have to go to court, if we have to stand in front of any of their machines that are going to take the oil through, we are going to do that. We’re up against a wall here. We have nowhere else to go[86].”

Roughly one week after the Indigenous alliance was formed, an ExxonMobil pipeline carrying Alberta tar sands oil through the United States ruptured in the town of Mayflower, Arkansas, spilling thousands of barrels of oil into residential neighbourhoods and the surrounding environment. Exxon quickly moved in with roughly 600 workers to manage the cleanup and sign checks “to try to win over the townsfolk and seek to limit the fallout[87].” The United States Federal Aviation Administration (FAA) put in place a “no fly zone” over Mayflower, Arkansas, within days following the oil spill. The ‘no fly zone’ was being overseen by ExxonMobil itself, thus, as Steven Horn commented, “any media or independent observers who want to witness the tar sands spill disaster have to ask Exxon’s permission[88].”

Between March 11 and April 9 of 2013 (in a span of roughly thirty days), there were 13 reported oil spills on three separate continents, with more than a million gallons of oil and other toxic chemicals spilled in North and South America alone. The oil spills included an Enbridge pipeline leak in the Northwest Territories in Canada (March 19), a tar sands ‘tailing pond’ belonging to Suncor leaking into the Athabasca River in Alberta (March 25), a Canadian Pacific Railway train derailment spilling tar sands oil in Minnesota (March 27), the Exxon spill in Mayflower (March 29), oil-based hydraulic fluid spilling into the Grand River from a power plant in Michigan (March 31), a CN Rail train derailment in Ontario (April 3), a drilling leak in Newfoundland (April 3), the Shell pipeline leak in Texas (April 3), a condensate spill at an Exxon refinery in Louisiana (April 4), and a pump station ‘error’ in Alaska (April 9)[89]. Another spill took place in June on Kinder Morgan’s Trans Mountain pipeline in British Columbia, one of the pipeline extensions being opposed by Indigenous groups[90].

Meanwhile, Stephen Harper was in New York in May, speaking to the highly influential US think tank, the Council on Foreign Relations, where he explained that the proposed Keystone XL pipeline “absolutely needs to go ahead,” adding that it was “an enormous benefit to the US in terms of long-term energy security[91].” TransCanada, the company aiming to build the Keystone XL pipeline, along with the government of Alberta, hired a team of lobbyists with connections to the Obama administration and Secretary of State John Kerry in particular to pressure the US government to approve the pipeline[92]. In late April, the president of the American Petroleum Institute confidently declared, “When it’s all said and done, the president will approve the pipeline[93].” In late May, the CEO of TransCanada said, “I remain extremely confident that we’ll get the green light to build this pipeline[94].”

Leaders from 11 different Indigenous bands in the United States “stormed out” of a meeting in May being held with federal government officials in South Dakota in protest against the Keystone XL pipeline. The leaders criticized both the project and the Obama administration, with one leader commenting, “We find ourselves victims of another form of genocide, and it’s environmental genocide, and it’s caused by extractive industries.” Another Indigenous leader who walked out of the meeting warned, “What the State Department, what President Obama needs to hear from us, is that we are going to be taking direct action[95].” TransCanada has even been supplying US police agencies with information about environmental activists and recommendations to pursue charges of “terrorism” against them, noting that the company feared such “potential security concerns” as protests, blockades, court challenges, and even “public meetings[96].”

While Indigenous communities in Canada and elsewhere are among the most repressed and exploited within our society, they are also on the front lines of resistance against environmentally destructive practices undertaken by the most powerful institutions in the world. As such, Indigenous groups are not only standing up for environmental issues, but for the future of the species as a whole. With the rapidly accelerating ‘development’ of the tar sands, and the increasing environmental danger of huge new pipelines projects, resistance to how our modern society treats the environment is reaching new heights. Indigenous organizing – much of which is done along anarchistic ideas (such as with the Idle No More movement) – is presenting an unprecedented challenge to institutional power structures. Thus, there is an increased need for environmentalists, scientists, and others who are interested in joining forces with Indigenous groups in the struggle against environmental degradation and the potential extinction of the species. In Canada, there is an even greater impetus for scientists to join forces with Indigenous communities, for there is a state-sponsored assault upon environmental sciences that threaten to devastate the scientific community in the very near term.

THE CANADIAN GOVERNMENT’S ATTACK ON ENVIRONMENTAL SCIENCE

Since Stephen Harper’s Conservative government came to power in 2006, there has been a steady attack upon the sciences, particularly those related to environmental issues, as the government cut funding for major programs and implemented layoffs. One major facet of this attack has been the ‘muzzling’ of Canadian scientists at international conferences, discussions with the media, and the publication of research. At one conference hosted in Canada, scientists working for Environment Canada were forced to direct all media inquiries through the public relations department in an effort “to intimidate government scientists[97].” Under new government guidelines, scientists working for the Department of Fisheries and Oceans (DFO) cannot publish material until it is reviewed by the department “for any concerns/impacts to DFO policy.” The Canadian Association of University Teachers (CAUT) expressed in a letter to Stephen Harper their “deep dismay and anger at your government’s attack on the independence, integrity and academic freedom of scientific researchers[98].” Hundreds of Canadian scientists marched on Parliament Hill in July of 2012 in what they called a “funeral procession” against the government’s “systematic attack on science[99].”

One of the world’s leading science journals, Nature, published an editorial in March of 2012 calling on the Canadian government to stop muzzling and “set its scientists free[100].” Journalists requesting interviews with Canadian government scientists on issues related to the Arctic or climate change have had to go through public relations officials, provide questions in advance, adhere to “boundaries for what subjects the interview could touch upon,” and have a PR staffer “listen in on the interviews[101].”

Dozens of government agencies and programs related to environmental sciences have had their budgets slashed, scientists fired, or were discontinued altogether[102]. The Environmental Law Centre at the University of Victoria lodged a formal complaint with Canada’s Federal Information Commissioner about the muzzling of scientists, outlining multiple examples “of taxpayer-funded science being suppressed or limited to prepackaged media lines across six different government departments and agencies.” Natural Resources Canada now requires “pre-approval” from the government before any scientists give interviews on topics such as “climate change” or the “oilsands[103].”

The attack upon the sciences is part of the Harper government’s 2007 strategy, Mobilizing Science and Technology to Canada’s Advantage, which directed “a major shift away from scientific goals to economic and labour-market priorities,” aiming to focus on science and research which would be directly useful to industry and for commercial purposes. The Natural Sciences and Engineering Research Council of Canada (NSERC) has been steered by the government “toward industry-related research and away from environmental science.” The government’s minister of state for science and technology noted that the focus for research was to be on “getting those ideas out to our factory floors, if you will, making the product or process or somehow putting that into the marketplace and creating jobs[104].” Further, the National Research Council (NRC) was “to focus more on practical, commercial science and less on fundamental science” which wouldn’t be as beneficial to corporate interests. The minister of state for science and technology, Gary Goodyear, announced it as “an exciting, new journey – a re-direction that will strengthen Canada’s research and innovation ecosystem for many years to come.” The president of the NRC noted that, “We have shifted the primary focus of our work at NRC from the traditional emphasis of basic research and discovery science in favour of a more targeted approach to research and development[105].”

As Stephen Harper said, “Science powers commerce,” but apparently to Harper, that is all it should do, even though many scientists and academics disagree[106]. The implications should be obvious: just as society’s interaction with the environment is unsustainable, so too is the dependency of the sciences upon those institutions which are destroying the environment.

MOVING FORWARD

Regardless of one’s position in society – as a member of an Indigenous group, an activist group, or within the scientific community – all of human society is facing the threat of extinction, accelerated by our destruction of the environment sourced at the point of interaction (the location of extraction) between the dominant institutions of our world and the natural world itself. Roughly half the world’s population lives in extreme poverty, with billions living in hunger, with poor access to safe drinking water, medicine and shelter, monumental disparities in wealth and inequality, the production and maintenance of unprecedented weapons of death and destruction, we are witnessing an exponentially accelerating plundering of resources and destruction of the environment upon which all life on Earth depends. If there has ever been a time in human history to begin asking big questions about the nature of our society and the legitimacy of the institutions and ideologies which dominate it, this is it.

An anarchistic understanding of the institutions and ideologies which control the world order reveals a society blinded by apathy as it nears extinction. The institutions which dictate the political, economic and social direction of our world are the very same ones destroying the environment to such an extent that the fate of the species is put at extreme risk. To not only continue – but to accelerate – down this path is no longer an acceptable course of action for humanity. It is time that socially segregated populations begin reaching out and working together, to share knowledge, organizational capacity, and engage in mutual action for shared objectives. With that in mind, it would appear to be beneficial not only for those involved – but for humanity as a whole – if Indigenous peoples and segments of the scientific community pursued the objective of protecting the environment together. Acknowledging this is easy enough, the hard part is figuring out the means and methods of turning that acknowledgement into action.

This is again where anarchist principles can become useful, emphasizing the creative capacity of many to contribute new ideas and undertake new initiatives working together as free individuals in collective organizations to achieve shared objectives. This is not an easy task, but it is a necessary one. The very future of humanity may depend upon it.

For notes and sources, download the paper here.

Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com‘s Global Power Pro-ject, and hosts a weekly podcast show with BoilingFrogsPost.

War Is A Racket: The Profit Motive Behind Warfare

In Uncategorized on May 27, 2013 at 3:16 pm

WALL STREET IS WAR STREET

Oldspeak: “The Oldspeak Journal is about exploding myths. The myth of the “Just Wars” are some of the biggest myths of all. All wars are unjust.  Innocents invariably die needlessly for the profits of a safely away from fighting, well-heeled elite few. On the occasion of Memorial Day 2013 while the coporocratic demopublicans are dutifully attending ceremonies, paying respects, laying wreaths, feigning mourning & concern for our troops, bleating about how U.S. war making has always been about defending freedom, justice and the American Way, I invite you to read the truth, from, the mouth of a highly respected, highly decorated, freethinker, Major General Smedley Darlington Butler.  He knew first hand the deadly intersections between war, business & money. He exposed the “Business Plot” concocted by wall street banksters and other corporate interests to overthrow President Roosevelt in 1933. He understood, that just as with every other undesirable business enterprise, it could only be stopped by eliminating the profit motive. He understood that the people who’d be charged with fighting and dying in wars should have the final say on whether or not there should be war, not the people who stood to profit obscenely from it.  He understood that war should not be perpetual, and globally persecuted. That our armed forces should be used for defense of our homeland only.  Knowledge & education are infinitely better safeguards of liberty than standing armies. As long as profit remains paramount, there will always be War.”

By Major General Smedley Darlington Butler:

CHAPTER ONE

War Is A Racket

WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives.

A racket is best described, I believe, as something that is not what it seems to the majority of the people. Only a small “inside” group knows what it is about. It is conducted for the benefit of the very few, at the expense of the very many. Out of war a few people make huge fortunes.

In the World War [I] a mere handful garnered the profits of the conflict. At least 21,000 new millionaires and billionaires were made in the United States during the World War. That many admitted their huge blood gains in their income tax returns. How many other war millionaires falsified their tax returns no one knows.

How many of these war millionaires shouldered a rifle? How many of them dug a trench? How many of them knew what it meant to go hungry in a rat-infested dug-out? How many of them spent sleepless, frightened nights, ducking shells and shrapnel and machine gun bullets? How many of them parried a bayonet thrust of an enemy? How many of them were wounded or killed in battle?

Out of war nations acquire additional territory, if they are victorious. They just take it. This newly acquired territory promptly is exploited by the few — the selfsame few who wrung dollars out of blood in the war. The general public shoulders the bill.

And what is this bill?

This bill renders a horrible accounting. Newly placed gravestones. Mangled bodies. Shattered minds. Broken hearts and homes. Economic instability. Depression and all its attendant miseries. Back-breaking taxation for generations and generations.

For a great many years, as a soldier, I had a suspicion that war was a racket; not until I retired to civil life did I fully realize it. Now that I see the international war clouds gathering, as they are today, I must face it and speak out.

Again they are choosing sides. France and Russia met and agreed to stand side by side. Italy and Austria hurried to make a similar agreement. Poland and Germany cast sheep’s eyes at each other, forgetting for the nonce [one unique occasion], their dispute over the Polish Corridor.

The assassination of King Alexander of Jugoslavia [Yugoslavia] complicated matters. Jugoslavia and Hungary, long bitter enemies, were almost at each other’s throats. Italy was ready to jump in. But France was waiting. So was Czechoslovakia. All of them are looking ahead to war. Not the people — not those who fight and pay and die — only those who foment wars and remain safely at home to profit.

There are 40,000,000 men under arms in the world today, and our statesmen and diplomats have the temerity to say that war is not in the making.

Hell’s bells! Are these 40,000,000 men being trained to be dancers?

Not in Italy, to be sure. Premier Mussolini knows what they are being trained for. He, at least, is frank enough to speak out. Only the other day, Il Duce in “International Conciliation,” the publication of the Carnegie Endowment for International Peace, said:

“And above all, Fascism, the more it considers and observes the future and the development of humanity quite apart from political considerations of the moment, believes neither in the possibility nor the utility of perpetual peace. . . . War alone brings up to its highest tension all human energy and puts the stamp of nobility upon the people who have the courage to meet it.”

Undoubtedly Mussolini means exactly what he says. His well-trained army, his great fleet of planes, and even his navy are ready for war — anxious for it, apparently. His recent stand at the side of Hungary in the latter’s dispute with Jugoslavia showed that. And the hurried mobilization of his troops on the Austrian border after the assassination of Dollfuss showed it too. There are others in Europe too whose sabre rattling presages war, sooner or later.

Herr Hitler, with his rearming Germany and his constant demands for more and more arms, is an equal if not greater menace to peace. France only recently increased the term of military service for its youth from a year to eighteen months.

Yes, all over, nations are camping in their arms. The mad dogs of Europe are on the loose. In the Orient the maneuvering is more adroit. Back in 1904, when Russia and Japan fought, we kicked out our old friends the Russians and backed Japan. Then our very generous international bankers were financing Japan. Now the trend is to poison us against the Japanese. What does the “open door” policy to China mean to us? Our trade with China is about $90,000,000 a year. Or the Philippine Islands? We have spent about $600,000,000 in the Philippines in thirty-five years and we (our bankers and industrialists and speculators) have private investments there of less than $200,000,000.

Then, to save that China trade of about $90,000,000, or to protect these private investments of less than $200,000,000 in the Philippines, we would be all stirred up to hate Japan and go to war — a war that might well cost us tens of billions of dollars, hundreds of thousands of lives of Americans, and many more hundreds of thousands of physically maimed and mentally unbalanced men.

Of course, for this loss, there would be a compensating profit — fortunes would be made. Millions and billions of dollars would be piled up. By a few. Munitions makers. Bankers. Ship builders. Manufacturers. Meat packers. Speculators. They would fare well.

Yes, they are getting ready for another war. Why shouldn’t they? It pays high dividends.

But what does it profit the men who are killed? What does it profit their mothers and sisters, their wives and their sweethearts? What does it profit their children?

What does it profit anyone except the very few to whom war means huge profits?

Yes, and what does it profit the nation?

Take our own case. Until 1898 we didn’t own a bit of territory outside the mainland of North America. At that time our national debt was a little more than $1,000,000,000. Then we became “internationally minded.” We forgot, or shunted aside, the advice of the Father of our country. We forgot George Washington’s warning about “entangling alliances.” We went to war. We acquired outside territory. At the end of the World War period, as a direct result of our fiddling in international affairs, our national debt had jumped to over $25,000,000,000. Our total favorable trade balance during the twenty-five-year period was about $24,000,000,000. Therefore, on a purely bookkeeping basis, we ran a little behind year for year, and that foreign trade might well have been ours without the wars.

It would have been far cheaper (not to say safer) for the average American who pays the bills to stay out of foreign entanglements. For a very few this racket, like bootlegging and other underworld rackets, brings fancy profits, but the cost of operations is always transferred to the people — who do not profit.

CHAPTER TWO

Who Makes The Profits?

The World War, rather our brief participation in it, has cost the United States some $52,000,000,000. Figure it out. That means $400 to every American man, woman, and child. And we haven’t paid the debt yet. We are paying it, our children will pay it, and our children’s children probably still will be paying the cost of that war.

The normal profits of a business concern in the United States are six, eight, ten, and sometimes twelve percent. But war-time profits — ah! that is another matter — twenty, sixty, one hundred, three hundred, and even eighteen hundred per cent — the sky is the limit. All that traffic will bear. Uncle Sam has the money. Let’s get it.

Of course, it isn’t put that crudely in war time. It is dressed into speeches about patriotism, love of country, and “we must all put our shoulders to the wheel,” but the profits jump and leap and skyrocket — and are safely pocketed. Let’s just take a few examples:

Take our friends the du Ponts, the powder people — didn’t one of them testify before a Senate committee recently that their powder won the war? Or saved the world for democracy? Or something? How did they do in the war? They were a patriotic corporation. Well, the average earnings of the du Ponts for the period 1910 to 1914 were $6,000,000 a year. It wasn’t much, but the du Ponts managed to get along on it. Now let’s look at their average yearly profit during the war years, 1914 to 1918. Fifty-eight million dollars a year profit we find! Nearly ten times that of normal times, and the profits of normal times were pretty good. An increase in profits of more than 950 per cent.

Take one of our little steel companies that patriotically shunted aside the making of rails and girders and bridges to manufacture war materials. Well, their 1910-1914 yearly earnings averaged $6,000,000. Then came the war. And, like loyal citizens, Bethlehem Steel promptly turned to munitions making. Did their profits jump — or did they let Uncle Sam in for a bargain? Well, their 1914-1918 average was $49,000,000 a year!

Or, let’s take United States Steel. The normal earnings during the five-year period prior to the war were $105,000,000 a year. Not bad. Then along came the war and up went the profits. The average yearly profit for the period 1914-1918 was $240,000,000. Not bad.

There you have some of the steel and powder earnings. Let’s look at something else. A little copper, perhaps. That always does well in war times.

Anaconda, for instance. Average yearly earnings during the pre-war years 1910-1914 of $10,000,000. During the war years 1914-1918 profits leaped to $34,000,000 per year.

Or Utah Copper. Average of $5,000,000 per year during the 1910-1914 period. Jumped to an average of $21,000,000 yearly profits for the war period.

Let’s group these five, with three smaller companies. The total yearly average profits of the pre-war period 1910-1914 were $137,480,000. Then along came the war. The average yearly profits for this group skyrocketed to $408,300,000.

A little increase in profits of approximately 200 per cent.

Does war pay? It paid them. But they aren’t the only ones. There are still others. Let’s take leather.

For the three-year period before the war the total profits of Central Leather Company were $3,500,000. That was approximately $1,167,000 a year. Well, in 1916 Central Leather returned a profit of $15,000,000, a small increase of 1,100 per cent. That’s all. The General Chemical Company averaged a profit for the three years before the war of a little over $800,000 a year. Came the war, and the profits jumped to $12,000,000. a leap of 1,400 per cent.

International Nickel Company — and you can’t have a war without nickel — showed an increase in profits from a mere average of $4,000,000 a year to $73,000,000 yearly. Not bad? An increase of more than 1,700 per cent.

American Sugar Refining Company averaged $2,000,000 a year for the three years before the war. In 1916 a profit of $6,000,000 was recorded.

Listen to Senate Document No. 259. The Sixty-Fifth Congress, reporting on corporate earnings and government revenues. Considering the profits of 122 meat packers, 153 cotton manufacturers, 299 garment makers, 49 steel plants, and 340 coal producers during the war. Profits under 25 per cent were exceptional. For instance the coal companies made between 100 per cent and 7,856 per cent on their capital stock during the war. The Chicago packers doubled and tripled their earnings.

And let us not forget the bankers who financed the great war. If anyone had the cream of the profits it was the bankers. Being partnerships rather than incorporated organizations, they do not have to report to stockholders. And their profits were as secret as they were immense. How the bankers made their millions and their billions I do not know, because those little secrets never become public — even before a Senate investigatory body.

But here’s how some of the other patriotic industrialists and speculators chiseled their way into war profits.

Take the shoe people. They like war. It brings business with abnormal profits. They made huge profits on sales abroad to our allies. Perhaps, like the munitions manufacturers and armament makers, they also sold to the enemy. For a dollar is a dollar whether it comes from Germany or from France. But they did well by Uncle Sam too. For instance, they sold Uncle Sam 35,000,000 pairs of hobnailed service shoes. There were 4,000,000 soldiers. Eight pairs, and more, to a soldier. My regiment during the war had only one pair to a soldier. Some of these shoes probably are still in existence. They were good shoes. But when the war was over Uncle Sam has a matter of 25,000,000 pairs left over. Bought — and paid for. Profits recorded and pocketed.

There was still lots of leather left. So the leather people sold your Uncle Sam hundreds of thousands of McClellan saddles for the cavalry. But there wasn’t any American cavalry overseas! Somebody had to get rid of this leather, however. Somebody had to make a profit in it — so we had a lot of McClellan saddles. And we probably have those yet.

Also somebody had a lot of mosquito netting. They sold your Uncle Sam 20,000,000 mosquito nets for the use of the soldiers overseas. I suppose the boys were expected to put it over them as they tried to sleep in muddy trenches — one hand scratching cooties on their backs and the other making passes at scurrying rats. Well, not one of these mosquito nets ever got to France!

Anyhow, these thoughtful manufacturers wanted to make sure that no soldier would be without his mosquito net, so 40,000,000 additional yards of mosquito netting were sold to Uncle Sam.

There were pretty good profits in mosquito netting in those days, even if there were no mosquitoes in France. I suppose, if the war had lasted just a little longer, the enterprising mosquito netting manufacturers would have sold your Uncle Sam a couple of consignments of mosquitoes to plant in France so that more mosquito netting would be in order.

Airplane and engine manufacturers felt they, too, should get their just profits out of this war. Why not? Everybody else was getting theirs. So $1,000,000,000 — count them if you live long enough — was spent by Uncle Sam in building airplane engines that never left the ground! Not one plane, or motor, out of the billion dollars worth ordered, ever got into a battle in France. Just the same the manufacturers made their little profit of 30, 100, or perhaps 300 per cent.

Undershirts for soldiers cost 14¢ [cents] to make and uncle Sam paid 30¢ to 40¢ each for them — a nice little profit for the undershirt manufacturer. And the stocking manufacturer and the uniform manufacturers and the cap manufacturers and the steel helmet manufacturers — all got theirs.

Why, when the war was over some 4,000,000 sets of equipment — knapsacks and the things that go to fill them — crammed warehouses on this side. Now they are being scrapped because the regulations have changed the contents. But the manufacturers collected their wartime profits on them — and they will do it all over again the next time.

There were lots of brilliant ideas for profit making during the war.

One very versatile patriot sold Uncle Sam twelve dozen 48-inch wrenches. Oh, they were very nice wrenches. The only trouble was that there was only one nut ever made that was large enough for these wrenches. That is the one that holds the turbines at Niagara Falls. Well, after Uncle Sam had bought them and the manufacturer had pocketed the profit, the wrenches were put on freight cars and shunted all around the United States in an effort to find a use for them. When the Armistice was signed it was indeed a sad blow to the wrench manufacturer. He was just about to make some nuts to fit the wrenches. Then he planned to sell these, too, to your Uncle Sam.

Still another had the brilliant idea that colonels shouldn’t ride in automobiles, nor should they even ride on horseback. One has probably seen a picture of Andy Jackson riding in a buckboard. Well, some 6,000 buckboards were sold to Uncle Sam for the use of colonels! Not one of them was used. But the buckboard manufacturer got his war profit.

The shipbuilders felt they should come in on some of it, too. They built a lot of ships that made a lot of profit. More than $3,000,000,000 worth. Some of the ships were all right. But $635,000,000 worth of them were made of wood and wouldn’t float! The seams opened up — and they sank. We paid for them, though. And somebody pocketed the profits.

It has been estimated by statisticians and economists and researchers that the war cost your Uncle Sam $52,000,000,000. Of this sum, $39,000,000,000 was expended in the actual war itself. This expenditure yielded $16,000,000,000 in profits. That is how the 21,000 billionaires and millionaires got that way. This $16,000,000,000 profits is not to be sneezed at. It is quite a tidy sum. And it went to a very few.

The Senate (Nye) committee probe of the munitions industry and its wartime profits, despite its sensational disclosures, hardly has scratched the surface.

Even so, it has had some effect. The State Department has been studying “for some time” methods of keeping out of war. The War Department suddenly decides it has a wonderful plan to spring. The Administration names a committee — with the War and Navy Departments ably represented under the chairmanship of a Wall Street speculator — to limit profits in war time. To what extent isn’t suggested. Hmmm. Possibly the profits of 300 and 600 and 1,600 per cent of those who turned blood into gold in the World War would be limited to some smaller figure.

Apparently, however, the plan does not call for any limitation of losses — that is, the losses of those who fight the war. As far as I have been able to ascertain there is nothing in the scheme to limit a soldier to the loss of but one eye, or one arm, or to limit his wounds to one or two or three. Or to limit the loss of life.

There is nothing in this scheme, apparently, that says not more than 12 per cent of a regiment shall be wounded in battle, or that not more than 7 per cent in a division shall be killed.

Of course, the committee cannot be bothered with such trifling matters.

CHAPTER THREE

Who Pays The Bills?

Who provides the profits — these nice little profits of 20, 100, 300, 1,500 and 1,800 per cent? We all pay them — in taxation. We paid the bankers their profits when we bought Liberty Bonds at $100.00 and sold them back at $84 or $86 to the bankers. These bankers collected $100 plus. It was a simple manipulation. The bankers control the security marts. It was easy for them to depress the price of these bonds. Then all of us — the people — got frightened and sold the bonds at $84 or $86. The bankers bought them. Then these same bankers stimulated a boom and government bonds went to par — and above. Then the bankers collected their profits.

But the soldier pays the biggest part of the bill.

If you don’t believe this, visit the American cemeteries on the battlefields abroad. Or visit any of the veteran’s hospitals in the United States. On a tour of the country, in the midst of which I am at the time of this writing, I have visited eighteen government hospitals for veterans. In them are a total of about 50,000 destroyed men — men who were the pick of the nation eighteen years ago. The very able chief surgeon at the government hospital; at Milwaukee, where there are 3,800 of the living dead, told me that mortality among veterans is three times as great as among those who stayed at home.

Boys with a normal viewpoint were taken out of the fields and offices and factories and classrooms and put into the ranks. There they were remolded; they were made over; they were made to “about face”; to regard murder as the order of the day. They were put shoulder to shoulder and, through mass psychology, they were entirely changed. We used them for a couple of years and trained them to think nothing at all of killing or of being killed.

Then, suddenly, we discharged them and told them to make another “about face” ! This time they had to do their own readjustment, sans [without] mass psychology, sans officers’ aid and advice and sans nation-wide propaganda. We didn’t need them any more. So we scattered them about without any “three-minute” or “Liberty Loan” speeches or parades. Many, too many, of these fine young boys are eventually destroyed, mentally, because they could not make that final “about face” alone.

In the government hospital in Marion, Indiana, 1,800 of these boys are in pens! Five hundred of them in a barracks with steel bars and wires all around outside the buildings and on the porches. These already have been mentally destroyed. These boys don’t even look like human beings. Oh, the looks on their faces! Physically, they are in good shape; mentally, they are gone.

There are thousands and thousands of these cases, and more and more are coming in all the time. The tremendous excitement of the war, the sudden cutting off of that excitement — the young boys couldn’t stand it.

That’s a part of the bill. So much for the dead — they have paid their part of the war profits. So much for the mentally and physically wounded — they are paying now their share of the war profits. But the others paid, too — they paid with heartbreaks when they tore themselves away from their firesides and their families to don the uniform of Uncle Sam — on which a profit had been made. They paid another part in the training camps where they were regimented and drilled while others took their jobs and their places in the lives of their communities. The paid for it in the trenches where they shot and were shot; where they were hungry for days at a time; where they slept in the mud and the cold and in the rain — with the moans and shrieks of the dying for a horrible lullaby.

But don’t forget — the soldier paid part of the dollars and cents bill too.

Up to and including the Spanish-American War, we had a prize system, and soldiers and sailors fought for money. During the Civil War they were paid bonuses, in many instances, before they went into service. The government, or states, paid as high as $1,200 for an enlistment. In the Spanish-American War they gave prize money. When we captured any vessels, the soldiers all got their share — at least, they were supposed to. Then it was found that we could reduce the cost of wars by taking all the prize money and keeping it, but conscripting [drafting] the soldier anyway. Then soldiers couldn’t bargain for their labor, Everyone else could bargain, but the soldier couldn’t.

Napoleon once said,

“All men are enamored of decorations . . . they positively hunger for them.”

So by developing the Napoleonic system — the medal business — the government learned it could get soldiers for less money, because the boys liked to be decorated. Until the Civil War there were no medals. Then the Congressional Medal of Honor was handed out. It made enlistments easier. After the Civil War no new medals were issued until the Spanish-American War.

In the World War, we used propaganda to make the boys accept conscription. They were made to feel ashamed if they didn’t join the army.

So vicious was this war propaganda that even God was brought into it. With few exceptions our clergymen joined in the clamor to kill, kill, kill. To kill the Germans. God is on our side . . . it is His will that the Germans be killed.

And in Germany, the good pastors called upon the Germans to kill the allies . . . to please the same God. That was a part of the general propaganda, built up to make people war conscious and murder conscious.

Beautiful ideals were painted for our boys who were sent out to die. This was the “war to end all wars.” This was the “war to make the world safe for democracy.” No one mentioned to them, as they marched away, that their going and their dying would mean huge war profits. No one told these American soldiers that they might be shot down by bullets made by their own brothers here. No one told them that the ships on which they were going to cross might be torpedoed by submarines built with United States patents. They were just told it was to be a “glorious adventure.”

Thus, having stuffed patriotism down their throats, it was decided to make them help pay for the war, too. So, we gave them the large salary of $30 a month.

All they had to do for this munificent sum was to leave their dear ones behind, give up their jobs, lie in swampy trenches, eat canned willy (when they could get it) and kill and kill and kill . . . and be killed.

But wait!

Half of that wage (just a little more than a riveter in a shipyard or a laborer in a munitions factory safe at home made in a day) was promptly taken from him to support his dependents, so that they would not become a charge upon his community. Then we made him pay what amounted to accident insurance — something the employer pays for in an enlightened state — and that cost him $6 a month. He had less than $9 a month left.

Then, the most crowning insolence of all — he was virtually blackjacked into paying for his own ammunition, clothing, and food by being made to buy Liberty Bonds. Most soldiers got no money at all on pay days.

We made them buy Liberty Bonds at $100 and then we bought them back — when they came back from the war and couldn’t find work — at $84 and $86. And the soldiers bought about $2,000,000,000 worth of these bonds!

Yes, the soldier pays the greater part of the bill. His family pays too. They pay it in the same heart-break that he does. As he suffers, they suffer. At nights, as he lay in the trenches and watched shrapnel burst about him, they lay home in their beds and tossed sleeplessly — his father, his mother, his wife, his sisters, his brothers, his sons, and his daughters.

When he returned home minus an eye, or minus a leg or with his mind broken, they suffered too — as much as and even sometimes more than he. Yes, and they, too, contributed their dollars to the profits of the munitions makers and bankers and shipbuilders and the manufacturers and the speculators made. They, too, bought Liberty Bonds and contributed to the profit of the bankers after the Armistice in the hocus-pocus of manipulated Liberty Bond prices.

And even now the families of the wounded men and of the mentally broken and those who never were able to readjust themselves are still suffering and still paying.

CHAPTER FOUR

How To Smash This Racket!

WELL, it’s a racket, all right.

A few profit — and the many pay. But there is a way to stop it. You can’t end it by disarmament conferences. You can’t eliminate it by peace parleys at Geneva. Well-meaning but impractical groups can’t wipe it out by resolutions. It can be smashed effectively only by taking the profit out of war.

The only way to smash this racket is to conscript capital and industry and labor before the nations manhood can be conscripted. One month before the Government can conscript the young men of the nation — it must conscript capital and industry and labor. Let the officers and the directors and the high-powered executives of our armament factories and our munitions makers and our shipbuilders and our airplane builders and the manufacturers of all the other things that provide profit in war time as well as the bankers and the speculators, be conscripted — to get $30 a month, the same wage as the lads in the trenches get.

Let the workers in these plants get the same wages — all the workers, all presidents, all executives, all directors, all managers, all bankers — yes, and all generals and all admirals and all officers and all politicians and all government office holders — everyone in the nation be restricted to a total monthly income not to exceed that paid to the soldier in the trenches!

Let all these kings and tycoons and masters of business and all those workers in industry and all our senators and governors and majors pay half of their monthly $30 wage to their families and pay war risk insurance and buy Liberty Bonds.

Why shouldn’t they?

They aren’t running any risk of being killed or of having their bodies mangled or their minds shattered. They aren’t sleeping in muddy trenches. They aren’t hungry. The soldiers are!

Give capital and industry and labor thirty days to think it over and you will find, by that time, there will be no war. That will smash the war racket — that and nothing else.

Maybe I am a little too optimistic. Capital still has some say. So capital won’t permit the taking of the profit out of war until the people — those who do the suffering and still pay the price — make up their minds that those they elect to office shall do their bidding, and not that of the profiteers.

Another step necessary in this fight to smash the war racket is the limited plebiscite to determine whether a war should be declared. A plebiscite not of all the voters but merely of those who would be called upon to do the fighting and dying. There wouldn’t be very much sense in having a 76-year-old president of a munitions factory or the flat-footed head of an international banking firm or the cross-eyed manager of a uniform manufacturing plant — all of whom see visions of tremendous profits in the event of war — voting on whether the nation should go to war or not. They never would be called upon to shoulder arms — to sleep in a trench and to be shot. Only those who would be called upon to risk their lives for their country should have the privilege of voting to determine whether the nation should go to war.

There is ample precedent for restricting the voting to those affected. Many of our states have restrictions on those permitted to vote. In most, it is necessary to be able to read and write before you may vote. In some, you must own property. It would be a simple matter each year for the men coming of military age to register in their communities as they did in the draft during the World War and be examined physically. Those who could pass and who would therefore be called upon to bear arms in the event of war would be eligible to vote in a limited plebiscite. They should be the ones to have the power to decide — and not a Congress few of whose members are within the age limit and fewer still of whom are in physical condition to bear arms. Only those who must suffer should have the right to vote.

A third step in this business of smashing the war racket is to make certain that our military forces are truly forces for defense only.

At each session of Congress the question of further naval appropriations comes up. The swivel-chair admirals of Washington (and there are always a lot of them) are very adroit lobbyists. And they are smart. They don’t shout that “We need a lot of battleships to war on this nation or that nation.” Oh no. First of all, they let it be known that America is menaced by a great naval power. Almost any day, these admirals will tell you, the great fleet of this supposed enemy will strike suddenly and annihilate 125,000,000 people. Just like that. Then they begin to cry for a larger navy. For what? To fight the enemy? Oh my, no. Oh, no. For defense purposes only.

Then, incidentally, they announce maneuvers in the Pacific. For defense. Uh, huh.

The Pacific is a great big ocean. We have a tremendous coastline on the Pacific. Will the maneuvers be off the coast, two or three hundred miles? Oh, no. The maneuvers will be two thousand, yes, perhaps even thirty-five hundred miles, off the coast.

The Japanese, a proud people, of course will be pleased beyond expression to see the united States fleet so close to Nippon’s shores. Even as pleased as would be the residents of California were they to dimly discern through the morning mist, the Japanese fleet playing at war games off Los Angeles.

The ships of our navy, it can be seen, should be specifically limited, by law, to within 200 miles of our coastline. Had that been the law in 1898 the Maine would never have gone to Havana Harbor. She never would have been blown up. There would have been no war with Spain with its attendant loss of life. Two hundred miles is ample, in the opinion of experts, for defense purposes. Our nation cannot start an offensive war if its ships can’t go further than 200 miles from the coastline. Planes might be permitted to go as far as 500 miles from the coast for purposes of reconnaissance. And the army should never leave the territorial limits of our nation.

To summarize: Three steps must be taken to smash the war racket.

  1. We must take the profit out of war.
  2. We must permit the youth of the land who would bear arms to decide whether or not there should be war.
  3. We must limit our military forces to home defense purposes.

CHAPTER FIVE

To Hell With War!

I am not a fool as to believe that war is a thing of the past. I know the people do not want war, but there is no use in saying we cannot be pushed into another war.

Looking back, Woodrow Wilson was re-elected president in 1916 on a platform that he had “kept us out of war” and on the implied promise that he would “keep us out of war.” Yet, five months later he asked Congress to declare war on Germany.

In that five-month interval the people had not been asked whether they had changed their minds. The 4,000,000 young men who put on uniforms and marched or sailed away were not asked whether they wanted to go forth to suffer and die.

Then what caused our government to change its mind so suddenly?

Money.

An allied commission, it may be recalled, came over shortly before the war declaration and called on the President. The President summoned a group of advisers. The head of the commission spoke. Stripped of its diplomatic language, this is what he told the President and his group:

“There is no use kidding ourselves any longer. The cause of the allies is lost. We now owe you (American bankers, American munitions makers, American manufacturers, American speculators, American exporters) five or six billion dollars.

If we lose (and without the help of the United States we must lose) we, England, France and Italy, cannot pay back this money . . . and Germany won’t.

So . . . “

Had secrecy been outlawed as far as war negotiations were concerned, and had the press been invited to be present at that conference, or had radio been available to broadcast the proceedings, America never would have entered the World War. But this conference, like all war discussions, was shrouded in utmost secrecy. When our boys were sent off to war they were told it was a “war to make the world safe for democracy” and a “war to end all wars.”

Well, eighteen years after, the world has less of democracy than it had then. Besides, what business is it of ours whether Russia or Germany or England or France or Italy or Austria live under democracies or monarchies? Whether they are Fascists or Communists? Our problem is to preserve our own democracy.

And very little, if anything, has been accomplished to assure us that the World War was really the war to end all wars.

Yes, we have had disarmament conferences and limitations of arms conferences. They don’t mean a thing. One has just failed; the results of another have been nullified. We send our professional soldiers and our sailors and our politicians and our diplomats to these conferences. And what happens?

The professional soldiers and sailors don’t want to disarm. No admiral wants to be without a ship. No general wants to be without a command. Both mean men without jobs. They are not for disarmament. They cannot be for limitations of arms. And at all these conferences, lurking in the background but all-powerful, just the same, are the sinister agents of those who profit by war. They see to it that these conferences do not disarm or seriously limit armaments.

The chief aim of any power at any of these conferences has not been to achieve disarmament to prevent war but rather to get more armament for itself and less for any potential foe.

There is only one way to disarm with any semblance of practicability. That is for all nations to get together and scrap every ship, every gun, every rifle, every tank, every war plane. Even this, if it were possible, would not be enough.

The next war, according to experts, will be fought not with battleships, not by artillery, not with rifles and not with machine guns. It will be fought with deadly chemicals and gases.

Secretly each nation is studying and perfecting newer and ghastlier means of annihilating its foes wholesale. Yes, ships will continue to be built, for the shipbuilders must make their profits. And guns still will be manufactured and powder and rifles will be made, for the munitions makers must make their huge profits. And the soldiers, of course, must wear uniforms, for the manufacturer must make their war profits too.

But victory or defeat will be determined by the skill and ingenuity of our scientists.

If we put them to work making poison gas and more and more fiendish mechanical and explosive instruments of destruction, they will have no time for the constructive job of building greater prosperity for all peoples. By putting them to this useful job, we can all make more money out of peace than we can out of war — even the munitions makers.

So…I say,

TO HELL WITH WAR!

The 1% Doctrine: Will Capitalism Destroy Civilization?

In Uncategorized on March 7, 2013 at 4:45 pm

Dollar burn through EarthOldspeak:” The official doctrines suffer from a number of familiar “market inefficiencies,” among them the failure to take into account the effects on others in market transactions. The consequences of these “externalities” can be substantial. The current financial crisis is an illustration. It is partly traceable to the major banks and investment firms’ ignoring “systemic risk” – the possibility that the whole system would collapse – when they undertook risky transactions.

Environmental catastrophe is far more serious: The externality that is being ignored is the fate of the species. And there is nowhere to run, cap in hand, for a bailout.

In future, historians (if there are any) will look back on this curious spectacle taking shape in the early 21st century. For the first time in human history, humans are facing the significant prospect of severe calamity as a result of their actions – actions that are battering our prospects of decent survival. ” –Noam Chomsky
When this man speaks, we should all listen. While the real economy, crumbles and disintegrates, 1 in 6 people go hungry. 1 in 2 people live at or near the poverty line. High unemployment persists and the number homeless people is at the last depression era levels. The Dow Jones is as it was before the last global economic crash – at a record high. Corporate profits are through the roof, while most people’s wages have been cut. Most profits are being funneled to the controllers of our political systems who’ve demonstrated contempt for the planet and every living thing on it who wont rest until every resource is exploited and maximum profit is derived from them. This powerful vampire capitalist system is, unsustainable; accelerating our progression toward environmental catastrophe. It constitutes an existential threat to the planet and by extension, all life on it. On can only wonder what madness will be wrought after the next global economic crash, but our civilizations first global ecological crash will render economics, politics and power as we know it irrelevant. Our corporate controllers do not want us to recognize this essential reality, even though most of us do. It is the reason “the United States has not adopted any consistent and stable set of policies at the national level to foster the use of renewable energy”. None of the manufactured crises we’re encouraged to focus on matter when there’s no clean water, air or soil. Greed has infected our controllers so thoroughly that this horrifying fact is lost on them. “Profit Is Paramount”

By Noam Chomsky @ Truthout:

There is “capitalism” and then there is “really existing capitalism.”

The term “capitalism” is commonly used to refer to the U.S. economic system, with substantial state intervention ranging from subsidies for creative innovation to the “too-big-to-fail” government insurance policy for banks.

The system is highly monopolized, further limiting reliance on the market, and increasingly so: In the past 20 years the share of profits of the 200 largest enterprises has risen sharply, reports scholar Robert W. McChesney in his new book “Digital Disconnect.”

“Capitalism” is a term now commonly used to describe systems in which there are no capitalists: for example, the worker-owned Mondragon conglomerate in the Basque region of Spain, or the worker-owned enterprises expanding in northern Ohio, often with conservative support – both are discussed in important work by the scholar Gar Alperovitz.

Some might even use the term “capitalism” to refer to the industrial democracy advocated by John Dewey, America’s leading social philosopher, in the late 19th century and early 20th century.

Dewey called for workers to be “masters of their own industrial fate” and for all institutions to be brought under public control, including the means of production, exchange, publicity, transportation and communication. Short of this, Dewey argued, politics will remain “the shadow cast on society by big business.”

The truncated democracy that Dewey condemned has been left in tatters in recent years. Now control of government is narrowly concentrated at the peak of the income scale, while the large majority “down below” has been virtually disenfranchised. The current political-economic system is a form of plutocracy, diverging sharply from democracy, if by that concept we mean political arrangements in which policy is significantly influenced by the public will.

There have been serious debates over the years about whether capitalism is compatible with democracy. If we keep to really existing capitalist democracy – RECD for short – the question is effectively answered: They are radically incompatible.

It seems to me unlikely that civilization can survive RECD and the sharply attenuated democracy that goes along with it. But could functioning democracy make a difference?

Let’s keep to the most critical immediate problem that civilization faces: environmental catastrophe. Policies and public attitudes diverge sharply, as is often the case under RECD. The nature of the gap is examined in several articles in the current issue of Daedalus, the journal of the American Academy of Arts and Sciences.

Researcher Kelly Sims Gallagher finds that “One hundred and nine countries have enacted some form of policy regarding renewable power, and 118 countries have set targets for renewable energy. In contrast, the United States has not adopted any consistent and stable set of policies at the national level to foster the use of renewable energy.”

It is not public opinion that drives American policy off the international spectrum. Quite the opposite. Opinion is much closer to the global norm than the U.S. government’s policies reflect, and much more supportive of actions needed to confront the likely environmental disaster predicted by an overwhelming scientific consensus – and one that’s not too far off; affecting the lives of our grandchildren, very likely.

As Jon A. Krosnick and Bo MacInnis report in Daedalus: “Huge majorities have favored steps by the federal government to reduce the amount of greenhouse gas emissions generated when utilities produce electricity. In 2006, 86 percent of respondents favored requiring utilities, or encouraging them with tax breaks, to reduce the amount of greenhouse gases they emit. Also in that year, 87 percent favored tax breaks for utilities that produce more electricity from water, wind or sunlight. These majorities were maintained between 2006 and 2010 and shrank somewhat after that.

The fact that the public is influenced by science is deeply troubling to those who dominate the economy and state policy.

One current illustration of their concern is the “Environmental Literacy Improvement Act” proposed to state legislatures by ALEC, the American Legislative Exchange Council, a corporate-funded lobby that designs legislation to serve the needs of the corporate sector and extreme wealth.

The ALEC Act mandates “balanced teaching” of climate science in K-12 classrooms. “Balanced teaching” is a code phrase that refers to teaching climate-change denial, to “balance” mainstream climate science. It is analogous to the “balanced teaching” advocated by creationists to enable the teaching of “creation science” in public schools. Legislation based on ALEC models has already been introduced in several states.

Of course, all of this is dressed up in rhetoric about teaching critical thinking – a fine idea, no doubt, but it’s easy to think up far better examples than an issue that threatens our survival and has been selected because of its importance in terms of corporate profits.

Media reports commonly present a controversy between two sides on climate change.

One side consists of the overwhelming majority of scientists, the world’s major national academies of science, the professional science journals and the Intergovernmental Panel on Climate Change.

They agree that global warming is taking place, that there is a substantial human component, that the situation is serious and perhaps dire, and that very soon, maybe within decades, the world might reach a tipping point where the process will escalate sharply and will be irreversible, with severe social and economic effects. It is rare to find such consensus on complex scientific issues.

The other side consists of skeptics, including a few respected scientists who caution that much is unknown – which means that things might not be as bad as thought, or they might be worse.

Omitted from the contrived debate is a much larger group of skeptics: highly regarded climate scientists who see the IPCC’s regular reports as much too conservative. And these scientists have repeatedly been proven correct, unfortunately.

The propaganda campaign has apparently had some effect on U.S. public opinion, which is more skeptical than the global norm. But the effect is not significant enough to satisfy the masters. That is presumably why sectors of the corporate world are launching their attack on the educational system, in an effort to counter the public’s dangerous tendency to pay attention to the conclusions of scientific research.

At the Republican National Committee’s Winter Meeting a few weeks ago, Louisiana Gov. Bobby Jindal warned the leadership that “We must stop being the stupid party. We must stop insulting the intelligence of voters.”

Within the RECD system it is of extreme importance that we become the stupid nation, not misled by science and rationality, in the interests of the short-term gains of the masters of the economy and political system, and damn the consequences.

These commitments are deeply rooted in the fundamentalist market doctrines that are preached within RECD, though observed in a highly selective manner, so as to sustain a powerful state that serves wealth and power.

The official doctrines suffer from a number of familiar “market inefficiencies,” among them the failure to take into account the effects on others in market transactions. The consequences of these “externalities” can be substantial. The current financial crisis is an illustration. It is partly traceable to the major banks and investment firms’ ignoring “systemic risk” – the possibility that the whole system would collapse – when they undertook risky transactions.

Environmental catastrophe is far more serious: The externality that is being ignored is the fate of the species. And there is nowhere to run, cap in hand, for a bailout.

In future, historians (if there are any) will look back on this curious spectacle taking shape in the early 21st century. For the first time in human history, humans are facing the significant prospect of severe calamity as a result of their actions – actions that are battering our prospects of decent survival.

Those historians will observe that the richest and most powerful country in history, which enjoys incomparable advantages, is leading the effort to intensify the likely disaster. Leading the effort to preserve conditions in which our immediate descendants might have a decent life are the so-called “primitive” societies: First Nations, tribal, indigenous, aboriginal.

The countries with large and influential indigenous populations are well in the lead in seeking to preserve the planet. The countries that have driven indigenous populations to extinction or extreme marginalization are racing toward destruction.

Thus Ecuador, with its large indigenous population, is seeking aid from the rich countries to allow it to keep its substantial oil reserves underground, where they should be.

Meanwhile the U.S. and Canada are seeking to burn fossil fuels, including the extremely dangerous Canadian tar sands, and to do so as quickly and fully as possible, while they hail the wonders of a century of (largely meaningless) energy independence without a side glance at what the world might look like after this extravagant commitment to self-destruction.

This observation generalizes: Throughout the world, indigenous societies are struggling to protect what they sometimes call “the rights of nature,” while the civilized and sophisticated scoff at this silliness.

This is all exactly the opposite of what rationality would predict – unless it is the skewed form of reason that passes through the filter of RECD.

© 2012 Noam Chomsky
(Noam Chomsky’s new book is “Power Systems: Conversations on Global Democratic Uprisings and the New Challenges to U.S. Empire. Conversations with David Barsamian.” Chomsky is emeritus professor of linguistics and philosophy at the Massachusetts Institute of Technology in Cambridge, Mass.)

How The Goldman Vampire Squid Just Captured Europe

In Uncategorized on April 19, 2012 at 2:15 pm

Oldspeak:The Goldman Sachs coup that failed in America has nearly succeeded in Europe – a permanent, irrevocable, unchallengeable bailout for the banks underwritten by the taxpayers. Goldman Sachs and the financial technocrats have taken over the European ship. Democracy has gone out the window, all in the name of keeping the central bank independent from the “abuses” of government. Yet, the government is the people – or it should be. A democratically elected government represents the people. Europeans are being hoodwinked into relinquishing their cherished democracy to a rogue band of financial pirates, and the rest of the world is not far behind.”-Ellen Brown Banks get bailouts while the very governments that issue the bailouts fail because they don’t actually have to money to pay for the bailout. They just run their printing presses and hand over increasingly worthless fiat currency. If you don’t know what quantitative easing, you will soon. Meanwhile, poverty, food, & energy costs grow, while 400 white men get incalculably rich.

Related Story:

Goldman Sachs, Citibank, JP Morgan Chase, Bank Of America Have Assets of $5 trillion & Carry $235 TRILLION In Risk Exposure, 1/3 Of World Total

BBC Speechless As Trader Tells The Truth: “Governments Don’t Rule The World, Goldman Sachs Rules The World.”

Why Isn’t Wall Street In Jail?

By Ellen Brown @ Truthout:

he Goldman Sachs coup that failed in America has nearly succeeded in Europe – a permanent, irrevocable, unchallengeable bailout for the banks underwritten by the taxpayers.

In September 2008, Henry Paulson, former CEO of Goldman Sachs, managed to extort a $700 billion bank bailout from Congress. But to pull it off, he had to fall on his knees and threaten the collapse of the entire global financial system and the imposition of martial law; and the bailout was a one-time affair. Paulson’s plea for a permanent bailout fund – the Troubled Asset Relief Program or TARP – was opposed by Congress and ultimately rejected.

By December 2011, European Central Bank President Mario Draghi, former vice president of Goldman Sachs Europe, was able to approve a 500 billion euro bailout for European banks without asking anyone’s permission. And in January 2012, a permanent rescue funding program called the European Stability Mechanism (ESM) was passed in the dead of night with barely even a mention in the press. The ESM imposes an open-ended debt on EU member governments, putting taxpayers on the hook for whatever the ESM’s eurocrat overseers demand.

The bankers’ coup has triumphed in Europe seemingly without a fight. The ESM is cheered by euro zone governments, their creditors and “the market” alike, because it means investors will keep buying sovereign debt. All is sacrificed to the demands of the creditors, because where else can the money be had to float the crippling debts of the euro zone governments?

There is another alternative to debt slavery to the banks. But first, a closer look at the nefarious underbelly of the ESM and Goldman’s silent takeover of the ECB….

The Dark Side of the ESM

The ESM is a permanent rescue facility slated to replace the temporary European Financial Stability Facility and European Financial Stabilization Mechanism as soon as member states representing 90 percent of the capital commitments have ratified it, something that is expected to happen in July 2012. A December 2011 YouTube video titled “The shocking truth of the pending EU collapse!” originally posted in German, gives such a revealing look at the ESM that it is worth quoting here at length. It states:

The EU is planning a new treaty called the European Stability Mechanism, or ESM: a treaty of debt…. The authorized capital stock shall be 700 billion euros. Question: why 700 billion?… [Probable answer: it simply mimicked the $700 billion the US Congress bought into in 2008.][Article 9]: “,,, ESM Members hereby irrevocably and unconditionally undertake to pay on demand any capital call made on them … within seven days of receipt of such demand.” … If the ESM needs money, we have seven days to pay…. But what does “irrevocably and unconditionally” mean? What if we have a new parliament, one that does not want to transfer money to the ESM?…

[Article 10]: “The Board of Governors may decide to change the authorized capital and amend Article 8 … accordingly.” Question: … 700 billion is just the beginning? The ESM can stock up the fund as much as it wants to, any time it wants to? And we would then be required under Article 9 to irrevocably and unconditionally pay up?

[Article 27, lines 2-3]: “The ESM, its property, funding and assets … shall enjoy immunity from every form of judicial process…. ” Question: So the ESM program can sue us, but we can’t challenge it in court?

[Article 27, line 4]: “The property, funding and assets of the ESM shall … be immune from search, requisition, confiscation, expropriation, or any other form of seizure, taking or foreclosure by executive, judicial, administrative or legislative action.” Question: … [T]his means that neither our governments, nor our legislatures, nor any of our democratic laws have any effect on the ESM organization? That’s a pretty powerful treaty!

[Article 30]: “Governors, alternate Governors, Directors, alternate Directors, the Managing Director and staff members shall be immune from legal process with respect to acts performed by them … and shall enjoy inviolability in respect of their official papers and documents.” Question: So anyone involved in the ESM is off the hook? They can’t be held accountable for anything? … The treaty establishes a new intergovernmental organization to which we are required to transfer unlimited assets within seven days if it so requests, an organization that can sue us but is immune from all forms of prosecution and whose managers enjoy the same immunity. There are no independent reviewers and no existing laws apply? Governments cannot take action against it? Europe’s national budgets in the hands of one single unelected intergovernmental organization? Is that the future of Europe? Is that the new EU – a Europe devoid of sovereign democracies?

The Goldman Squid Captures the ECB

Last November, without fanfare and barely noticed in the press, former Goldman executive Mario Draghi replaced Jean-Claude Trichet as head of the ECB. Draghi wasted no time doing for the banks what the ECB has refused to do for its member governments – lavish money on them at very cheap rates. French blogger Simon Thorpe reports:

On the 21st of December, the ECB “lent” 489 billion euros to European Banks at the extremely generous rate of just 1% over 3 years. I say “lent,” but in reality, they just ran the printing presses. The ECB doesn’t have the money to lend. It’s Quantitative Easing again.The money was gobbled up virtually instantaneously by a total of 523 banks. It’s complete madness. The ECB hopes that the banks will do something useful with it – like lending the money to the Greeks, who are currently paying 18% to the bond markets to get money. But there are absolutely no strings attached. If the banks decide to pay bonuses with the money, that’s fine. Or they might just shift all the money to tax havens.

At 18 percent interest, debt doublesin just four years. It is this onerous interest burden – not the debt itself – that is crippling Greece and other debtor nations. Thorpe proposes the obvious solution:

Why not lend the money to the Greek government directly? Or to the Portuguese government, currently having to borrow money at 11.9%? Or the Hungarian government, currently paying 8.53%. Or the Irish government, currently paying 8.51%? Or the Italian government, who are having to pay 7.06%?

The stock objection to that alternative is that Article 123 of the Lisbon Treaty prevents the ECB from lending to governments. But Thorpe reasons:

My understanding is that Article 123 is there to prevent elected governments from abusing Central Banks by ordering them to print money to finance excessive spending. That, we are told, is why the ECB has to be independent from governments. OK. But what we have now is a million times worse. The ECB is now completely in the hands of the banking sector. “We want half a billion of really cheap money!!” they say. OK, no problem. Mario is here to fix that. And no need to consult anyone. By the time the ECB makes the announcement, the money has already disappeared.

At least if the ECB was working under the supervision of elected governments, we would have some influence when we elect those governments. But the bunch that now has their grubby hands on the instruments of power are now totally out of control.

Goldman Sachs and the financial technocrats have taken over the European ship. Democracy has gone out the window, all in the name of keeping the central bank independent from the “abuses” of government. Yet, the government is the people – or it should be. A democratically elected government represents the people. Europeans are being hoodwinked into relinquishing their cherished democracy to a rogue band of financial pirates, and the rest of the world is not far behind.

Rather than ratifying the draconian ESM treaty, Europeans would be better advised to reverse Article 123 of the Lisbon treaty. Then, the ECB could issue credit directly to its member governments. Alternatively, euro zone governments could re-establish their economic sovereignty by reviving their publicly owned central banks and using them to issue the credit of the nation for the benefit of the nation, effectively interest free. This is not a new idea, but has been used historically to very good effect, e.g. in Australia through the Commonwealth Bank of Australia and in Canada through the Bank of Canada.

Today, the issuance of money and credit has become the private right of vampire rentiers, who are using it to squeeze the lifeblood out of economies. This right needs to be returned to sovereign governments. Credit should be a public utility, dispensed and managed for the benefit of the people.

To add your signature to a letter to parliamentarians blocking ratification of the ESM, click here.