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

Posts Tagged ‘Global Economic System’

Violence Against Our Environment

In Uncategorized on December 9, 2013 at 7:05 pm

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Oldspeak: “An increasing number of environmental activists, myself included, regard the word “environment” with some suspicion, generally preferring the term “ecological.” The reasoning behind the change in emphasis is because using the word “environment” posits the idea that nature is something that surrounds humans, but at the same time, something that we are fundamentally outside of, and separate from. The separation of nature from humans is the ideological position underlying capitalist orthodoxy; namely that the biosphere is a subset of the economy, rather than the other way around. Capitalists can freely take “natural resources” from outside of the economy as inputs, and dump waste from the production process back into the environment as outputs. Mainstream economic theory then pronounces that the ramifications of such an outlook will have only limited impact on the planet as a whole, and, thereby, economic accumulation and growth can continue indefinitely.

“Ecological,” on the other hand, embeds humans back within the external world as a natural component of it, the same as any other organism. The use of tools such as microscopes, or Magnetic Resonance Imaging devices, can then be seen not simply as humans investigating nature in order to understand it, but that we are concurrently investigating ourselves, because tools are merely mechanical extensions of our bodily senses. No doubt, Marx would very much approve of such an attention to the hidden social meaning of words, particularly with regard, in this example, to his very important concept of “metabolic rift”: the devastating and unnatural split or break between humans and nature, forced on us by capitalist social relations…

….Capitalist environmental violence rests on the dual exploitation of humans and nature, which were regarded by Marx as the twin sources of all wealth. Exploitation of the natural world, driven forward by the never-ending hunt for profits, is merely the flip side of the exploitation of humans, put to work to turn the source of sustenance into money. Viewed this way, socialists fighting for social justice and a different world cannot avoid integrating a fight for ecological justice, as the two are inseparable components of the same fight.” -Chris Williams

“Brilliant insight. in much the same way as we otherize & dehumanize each other in order to perpetrate violence, we consider ourselves separate from ecology we’re fundamentally a part of to rationalize violence against it. The faux distinction allows for the length, breadth and depravity of capitalist ecological violence. Blown up mountains. Poisoned waterways. Habitat Destruction. The list of offenses is very long. The economic system around which we organize our societies is at its foundation, ecocidal, homicidal, exploitative, repressive, racist, patriarchal, and interminably bureaucratic. it is animated by violence destruction & death. As long as we regard the biosphere a subset of the economy, the prospect of a livable future environment and planet is nil.  There is no economy on dead planet.” -OSJ

By Chris Williams @ Dissident Voice:

Both the words “environment” and “violence” have so many meanings, that they require some definition of how they can be of use in the context of a struggle for social justice. Regarding the word violence, according to Merriam Webster, one definition is “the use of brute strength to cause harm to a person or property”; a definition that doesn’t seem to have an immediately obvious connection to ecological issues associated with climate change, loss of biodiversity and various forms of pollution.

An increasing number of environmental activists, myself included, regard the word “environment” with some suspicion, generally preferring the term “ecological.” The reasoning behind the change in emphasis is because using the word “environment” posits the idea that nature is something that surrounds humans, but at the same time, something that we are fundamentally outside of, and separate from. The separation of nature from humans is the ideological position underlying capitalist orthodoxy; namely that the biosphere is a subset of the economy, rather than the other way around. Capitalists can freely take “natural resources” from outside of the economy as inputs, and dump waste from the production process back into the environment as outputs. Mainstream economic theory then pronounces that the ramifications of such an outlook will have only limited impact on the planet as a whole, and, thereby, economic accumulation and growth can continue indefinitely.

“Ecological,” on the other hand, embeds humans back within the external world as a natural component of it, the same as any other organism. The use of tools such as microscopes, or Magnetic Resonance Imaging devices, can then be seen not simply as humans investigating nature in order to understand it, but that we are concurrently investigating ourselves, because tools are merely mechanical extensions of our bodily senses. No doubt, Marx would very much approve of such an attention to the hidden social meaning of words, particularly with regard, in this example, to his very important concept of “metabolic rift”: the devastating and unnatural split or break between humans and nature, forced on us by capitalist social relations.

Given these issues, and the importance of words to explain and communicate thought, how should those of us engaged in a struggle against capitalist environmental violence, conceive of that fight?  If we are to argue that the social, economic and political system known as capitalism is the root cause of environmental violence, what are we arguing it is responsible for?

Interestingly enough, but, perhaps unsurprisingly given the prevalence of overt violence in our world, the dictionary gives almost 50 related words for “violence”. These begin with words such as “coercion”, “compulsion”, “constraint”, go on to “barbarity”, “brutality”, “damage” and continue with “onslaught”, “tumult” and “upheaval.”

Putting these words into a human context and joining them up with the word “environment” now starts to make significant sense. It is no longer possible to restrict violence to an act that is immediate and causes direct and obvious harm, whether that is in the most commonly thought of cases of warfare, police brutality, or state-sponsored torture such as waterboarding, or racist, sexist or homophobic language and bigotry.

Capitalist environmental violence rests on the dual exploitation of humans and nature, which were regarded by Marx as the twin sources of all wealth. Exploitation of the natural world, driven forward by the never-ending hunt for profits, is merely the flip side of the exploitation of humans, put to work to turn the source of sustenance into money. Viewed this way, socialists fighting for social justice and a different world cannot avoid integrating a fight for ecological justice, as the two are inseparable components of the same fight.

In this broadened understanding of violence, capitalism is an intensely violent system, as it depends on the systematic coercion of workers who are daily faced with the choice of working for “a living” or starvation and homelessness; their life choices for education, health and human fulfillment are hugely constrained by the unyielding ferocity of class exploitation and racism. Billions of people’s lives are stunted and foreshortened by the daily violence meted out to them via the dictates of a system that prioritizes profit above all else. In Volume I of Capital, Marx’s words resonate as much in our day as his:

In its blind unrestrainable passion, its werewolf hunger for surplus-labour, capital oversteps not only the moral, but even the merely physical maximum bounds of the working-day. It usurps the time for growth, development, and healthy maintenance of the body. It steals the time required for the consumption of fresh air and sunlight. It higgles over a meal-time, incorporating it where possible with the process of production itself, so that food is supplied to the labourer as to a mere means of production, as coal is supplied to the boiler, grease and oil to the machinery. It reduces the sound sleep needed for the restoration, reparation, refreshment of the bodily powers to just so many hours of torpor as the revival of an organism, absolutely exhausted, renders essential.

But for Marx, the violent treatment of humans by capitalist social relations, in shortening and hamstringing their lives through overwork, poor housing, inadequate food and pollution, was directly analogous to capitalist farming practices:

Capital cares nothing for the length of labour-power. All that concerns it is simply and solely the maximum of labour-power that can be rendered fluent in a working-day. It attains this end by shortening the extent of the [worker’s] life, as a greedy farmer snatches increased produce from the soil by robbing it of its fertility.

One can only have nutritious food, health care, or decent housing located in an unpolluted neighborhood, if one has the money to pay for those things. Lack of access to these necessities by some, where others have access, makes the violence explicit. Furthermore, there is the violence of institutionalized racism, and a culture saturated with sexism that turns women’s bodies into objects, doubly exploits them through unpaid domestic labor, and in the United States, refuses to allow women control over their own reproductive organs.

There is the associated psychological violence done to humans against our own sociality, whereby we are forced to live, in Marx’s emotive phrase, in “dot-like isolation,” as the primacy of the individual over the collective is sanctified. Few have written of the social alienation and environmental degradation suffered by working people with greater effect than Frederick Engels, in his classic study, The Condition of the Working Class in England.

Engels highlights the contradiction engendered by capitalism, between bringing millions of people together in giant urban conglomerations, which, rather than fostering collective solidarity and companionship, instead produce its opposite — an unfeeling and solitary individuality that corrupts the human spirit:

After roaming the streets of the capital a day or two, making headway with difficulty through the human turmoil and the endless lines of vehicles, after visiting the slums of the metropolis, one realises for the first time that these Londoners have been forced to sacrifice the best qualities of their human nature, to bring to pass all the marvels of civilisation which crowd their city; that a hundred powers which slumbered within them have remained inactive, have been suppressed in order that a few might be developed more fully and multiply through union with those of others.

For  Engels, this produces feelings and a mode of living that is profoundly alienating of all that is good about humans:

The brutal indifference, the unfeeling isolation of each in his private interest, becomes the more repellent and offensive, the more these individuals are crowded together, within a limited space. And, however much one may be aware that this isolation of the individual, this narrow self-seeking, is the fundamental principle of our society everywhere, it is nowhere so shamelessly barefaced, so self-conscious as just here in the crowding of the great city. The dissolution of mankind into monads, of which each one has a separate principle, the world of atoms, is here carried out to its utmost extreme.

Of course, there is the more overt and immediate violence of the state against people trying to protect their land from environmental degradation and ensuing displacement and poverty associated with fossil fuel extraction. From the Ogoni people in Nigeria fighting Shell, to indigenous people poisoned by Chevron in the forests of Ecuador, the paramilitary arm of the state serves corporate priorities the world over.

In North America, this was brutally demonstrated in September, as members of the Elsipogtog Mi’kmaq First Nation, alongside local residents, blockaded a road in New Brunswick, Canada. They were trying to prevent fracking exploration and were assaulted and tear gassed for their protest by paramilitary police.

The group, which had never been asked about whether they wanted their land used in this way, had blocked the road to stop shale gas exploration by SWN Resources Canada, a subsidiary of the Houston-based Southwestern Energy Co. As Susan Levi-Peters, the former chief of the nearby Elsipogtog indigenous group, told reporters, “The RCMP is coming in here with their tear gas – they even had dogs on us… They were acting like we’re standing there with weapons, while we are standing there, as women, with drums and eagle feathers.

There are myriad ways in which environmental violence plays out, especially when it is compounded by climate change. So, for example, in Sub-Saharan Africa, lack of tree-cover from ongoing deforestation, means even when rain comes, it runs off the land and carries fertile topsoil with it. As a result, women and girls, who are responsible for over 70 percent of water collection, have to travel further and further to obtain it. The UN estimates that women in Sub-Saharan Africa spend 200 million hours per day collecting water for food and farming purposes, or 40 billion hours annually.

In 1992, Lawrence Summers, who was at the time chief economist of the World Bank, later to become Bill Clinton’s Treasury Secretary, president of Harvard, and most recently one of Obama’s key economic advisors in his first cabinet, wrote in an internal World Bank memorandum published by The Economist:

“Just between you and me, shouldn’t the World Bank be encouraging more migration of the dirty industries to the LDCs?” By way of answering his own question, he gives three reasons. Here’s the first:

(1) The measurement of the costs of health-impairing pollution depends on the forgone earnings from increased morbidity and mortality. From this point of view a given amount of health-impairing pollution should be done in the country with the lowest cost, which will be the country with the lowest wages. I think the economic logic behind dumping a load of toxic waste in the lowest-wage country is impeccable and we should face up to that.

The fact that a major establishment actor is able to advocate and rationalize the dumping of toxic waste on poor communities is a perfect illustration of the inhumanity of the thought process behind capitalist decision-making.

As I have argued, we need a much broader definition of violence than is allowed for by limiting its meaning to a physical and immediate brutal act of aggression, and one that includes an environmental dimension. Violence can happen over extended periods of time. Exploited workers in unhealthy conditions and poor communities exposed to toxins gradually succumb to a worsening quality of life, through a compendium of often intersecting long-term ailments. Due to financial restrictions on health care (itself a violent act), they often can’t treat these illnesses by going to the doctor, seeking another job, or relocating to a different neighborhood.

A broadened definition of violence is exactly what Rob Nixon, Rachel Carson Professor of English at the University of Madison, argues is required in his book, Slow Violence and the Environmentalism of the Poor:

By slow violence I mean a violence that occurs gradually and out of sight, a violence of delayed destruction that is dispersed across time and space, an attritional violence that is typically not viewed as violence at all. Violence is customarily conceived as an event or action that is immediate in time, explosive and spectacular in space, and as erupting in sensational visibility.

That is to say, the unplanned, shorter and shorter time frames upon which capitalism operates, clash with the longer and longer term effects of the actions taken on those shorter time scales. Human induced climate change is arguably the primary and perfect example of just such a contradiction between the short-term priorities of capitalism to make profit from continuing to burn fossil fuels, and the longer term implications for future generations of humans, and planetary life in general, due to the now well-known side-effect of increased concentrations of atmospheric carbon dioxide. One could reasonably debate whether climate change, or the irradiation of the atmosphere from atomic tests and the need to deal with nuclear waste from nuclear power plants — waste that remains toxic and deadly for hundreds of thousands of years — is a more disruptive and long-term negative impact of capitalist social relations.

In the more immediate sense, while we currently produce enough food to feed everyone on the planet, over one billion people suffer starvation and hunger. In discussing why people starve in England, when food was in fact abundant, Engels posed the question of who should be blamed for the extreme violence of death by starvation: “The English working-men call this ‘social murder’, and accuse our whole society of perpetrating this crime perpetually. Are they wrong?”

In answering Engels’ question, one must blame the system for the long-term “social murder” of our planet, and the daily degradation and violence of life under capitalism. Given the critical state of the biosphere and an exploitative and constantly-growing economic model based on profit and fossil fuels for energy, which is bringing about global climate change, Rosa Luxemburg’s assertion, that we face the choice of barbarism or socialism, rings true now more than ever.

If we accept that premise, to return to where I began, one cannot be a social justice activist without equally being an ecological justice activist; and link arms with all those fighting racist environmental violence the world over.

Ultimately, all of this can only be solved by the self-emancipation of humanity and putting in place a system that prioritizes long-term human and planetary health; real, bottom-up democracy based on cooperation; and production for human needs at its center. We need a system of cooperative and meaningful production, whereby the goal of society is social equity and ecological sustainability, and where environmental violence, in all its manifestations, is a thing of the past. To bring this about will require a social and ecological revolution. While we organize and fight for that future, we must simultaneously work to bring about the small victories, necessary to make people’s immediate lives better and less polluted under capitalism, organize, and gain confidence for the larger, longer-term, and more profound and revolutionary battles to come.

Chris Williams is a long-time environmental activist and author of Ecology and Socialism: Solutions to Capitalist Ecological Crisis (Haymarket, 2011). He is chair of the science dept at Packer Collegiate Institute and adjunct professor at Pace University in the Dept of Chemistry and Physical Science. Read other articles by Chris.

 

Is Every Day Black Friday? How Climate Inaction And Hypermaterialism Betray Our Children

In Uncategorized on December 9, 2013 at 5:32 pm

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Oldspeak: “In the wake of the latest hyperconsumption fueled “holiday” complete with shootings, pepper spraying and beatings, it is useful to consider the implications of the continuation of our ecocidal, unsustainable carbon-intensive civilization.  Every day really is black friday. We’re constantly and relentlessly exhorted to consume more and more and more. Consumption is Citizenship.  Consumption is Love.  Consumption is Happiness. Consumption is Freedom. Consumption is Safety. Consumption is Security. Consumption is Expression. Consumption is Creativity. Consumption is Well-Being.  Consumption is Connection with Others. it is the most widely practiced way in which we are encouraged to participate in society. This is the ethos that animates it.  All our structures of power depend on rapacious consumption. And this is seen as normal. We are committed to status quo business as usual.  There are no real efforts to de-grow economies, reduce wasteful consumption, live within our planets’ means and intelligently manage her remaining and rapidly depleting natural resources.   This can only continue for so long.  Infinite growth is impossible on a finite planet. At some point, this global ponzi scheme will collapse, only this time the planet will collapse with it .”  -OSJ

We cannot stop catastrophic climate change — in the long term and possibly even the medium-term — without a pretty dramatic change to our overconsumption-based economic system. We have already overshot the Earth’s biocapacity — and the overshoot gets worse every yearWe created a way of raising standards of living that we can’t possibly pass on to our children. We have been getting rich by depleting all our natural stocks — water, hydrocarbons, forests, rivers, fish and arable land — and not by generating renewable flows. You can get this burst of wealth that we have created from this rapacious behavior. But it has to collapse, unless adults stand up and say, ‘This is a Ponzi scheme. We have not generated real wealth, and we are destroying a livable climate …’ Real wealth is something you can pass on in a way that others can enjoy”. -Joe Romm

By Joe Romm @ Climate Progress:

Black Friday has become an orgiastic celebration of hyper-materialism.

Black Friday is a sort of reverse “Hunger Games,” an annual ritualized competition, but one built around overabundance, rather than scarcity. It is perhaps the inevitable outcome of a country whose citizens are commonly referred to as “consumers.”

So what better time to think about how the global economic system is a Ponzi scheme, an utterly unsustainable system that effectively takes wealth from our children and future generations — wealth in the form of ground water, arable land, fisheries, a livable climate — to prop up our carbon-intensive lifestyles.

We cannot stop catastrophic climate change — in the long term and possibly even the medium-term — without a pretty dramatic change to our overconsumption-based economic system. We have already overshot the Earth’s biocapacity — and the overshoot gets worse every year.

footprint-biocapacity-e1355415565855
“A quarter of the energy we use is just in our crap,” physicist Saul Griffith explains in his detailed discussion of our carbon footprint. You can watch the MacArthur genius award winner soberly dissect his formerly unsustainable lifestyle here and here.

Or listen to the MSNBC interview of “Reverend Billy Talen of the Church of Stop Shopping.” Seriously (sort of). Or you can read the Onion’s black humor, “Chinese Factory Worker Can’t Believe The Shit He Makes For Americans.”

Children1-300x225The tragic irony is that much of this holiday shopping is supposedly for our kids — and yet this overconsumption is a core part of our climate inaction, which, as president Obama has said, is a betrayal of our children!

Now it’s true, as I’ve said, that if we ever get really serious about avoiding catastrophic climate change, we could dramatically cut national and global emissions for decades under the auspices of our basic economic system. You could use a high and rising price for CO2 plus smart regulations to encourage efficiency at a state and national level.

Also, the end to hyper-consumerism is not something amenable to legislation. I’ve argued that it is most likely to come when we are desperate — when the reality that we are destroying a livable climate is so painful that we give it up voluntarily, albeit reluctantly, like a smoker diagnosed with early-stage emphysema. Bill Clinton didn’t become vegan until after he experienced serious heart trouble — twice.

Climate science is clear that inaction is suicidal (see here). That’s why “virtually all” climatologists “are now convinced that global warming is a clear and present danger to civilization,” as Lonnie Thompson has put it.

A recent must-read New York Times opinion piece by an Iraqi war veteran, “Learning How to Die in the Anthropocene,” explains that a quantum shift in mindset is inevitable:

The human psyche naturally rebels against the idea of its end. Likewise, civilizations have throughout history marched blindly toward disaster, because humans are wired to believe that tomorrow will be much like today — it is unnatural for us to think that this way of life, this present moment, this order of things is not stable and permanent. Across the world today, our actions testify to our belief that we can go on like this forever, burning oil, poisoning the seas, killing off other species, pumping carbon into the air, ignoring the ominous silence of our coal mine canaries in favor of the unending robotic tweets of our new digital imaginarium. Yet the reality of global climate change is going to keep intruding on our fantasies of perpetual growth, permanent innovation and endless energy, just as the reality of mortality shocks our casual faith in permanence.

The biggest problem climate change poses isn’t how the Department of Defense should plan for resource wars, or how we should put up sea walls to protect Alphabet City, or when we should evacuate Hoboken. It won’t be addressed by buying a Prius, signing a treaty, or turning off the air-conditioning. The biggest problem we face is a philosophical one: understanding that this civilization is already dead. The sooner we confront this problem, and the sooner we realize there’s nothing we can do to save ourselves, the sooner we can get down to the hard work of adapting, with mortal humility, to our new reality.

The choice is a clear one. We can continue acting as if tomorrow will be just like yesterday, growing less and less prepared for each new disaster as it comes, and more and more desperately invested in a life we can’t sustain. Or we can learn to see each day as the death of what came before, freeing ourselves to deal with whatever problems the present offers without attachment or fear.

In the words of British poet Matthew Arnold, we are: “Wandering between two worlds, one dead / The other powerless to be born.”

On the subject of our global Ponzi scheme, New York Times columnist Tom Friedman interviewed me for a column back in 2009:

“We created a way of raising standards of living that we can’t possibly pass on to our children,” said Joe Romm, a physicist and climate expert who writes the indispensable blog climateprogress.org. We have been getting rich by depleting all our natural stocks — water, hydrocarbons, forests, rivers, fish and arable land — and not by generating renewable flows.

“You can get this burst of wealth that we have created from this rapacious behavior,” added Romm. “But it has to collapse, unless adults stand up and say, ‘This is a Ponzi scheme. We have not generated real wealth, and we are destroying a livable climate …’ Real wealth is something you can pass on in a way that others can enjoy.”

The adults, in short, are not standing up. Sadly, most haven’t even taken the time to understand that they should.

And so every generation that comes after the Baby Boomers is poised to experience the dramatic changes in lifestyle that inevitably follow the collapse of any Ponzi scheme.

Regular readers are familiar with this metaphor of a global Ponzi scheme. But it bears repeating on Black Friday since it is not just a metaphor, but a central organizing narrative of how to think about the fix we have put ourselves in. As an aside, since some shopping is unavoidable, remember that Black Friday is 50 times more carbon-intensive than Cyber Monday.

What exactly is a Ponzi scheme? Wikipedia (had a good entry:

A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from profit. The term “Ponzi scheme” is used primarily in the United States, while other English-speaking countries do not distinguish colloquially between this scheme and pyramid schemes.

The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.

In our case, investors (i.e. current generations) are paying themselves (i.e. you and me) by taking the nonrenewable resources and livable climate from future generations. To perpetuate the high returns the rich countries in particular have been achieving in recent decades, we have been taking an ever greater fraction of nonrenewable energy resources (especially hydrocarbons) and natural capital (fresh water, arable land, forests, fisheries), and, the most important nonrenewable natural capital of all — a livable climate.

See also a new study “The Monetary Cost of the Non-Use of Renewable Energies,” which finds that “every day we delay substituting renewables for fossil fuels,” every day “fossil raw materials are consumed as one-time energy creates a future usage loss of between 8.8 and 9.3 billion US Dollars.” Oil and coal are essentially too valuable to burn even ignoring the cost of their climate-destroying emissions.

The system is destined to collapse because the earnings, if any, are less than the payments.

See, for instance “Shocking World Bank Climate Report: ‘A 4°C [7°F] World Can, And Must, Be Avoided’ To Avert ‘Devastating’ Impacts”).

Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities.

Yes, well, the authorities (i.e. world leaders, opinion makers, the cognoscenti) haven’t been doing much interrupting over the past two to three decades since, unlike a typical Ponzi scheme, they are heavily invested in the scheme and addicted to the returns!

Knowingly entering a Ponzi scheme, even at the last round of the scheme, can be rational in the economic sense if a government will likely bail out those participating in the Ponzi scheme.

But Friedman quotes Glenn Prickett, senior vice president at Conservation International, explaining, “Mother Nature doesn’t do bailouts.”

We aren’t all Madoffs in the sense of people who have knowingly created a fraudulent Ponzi scheme for humanity. But given all of the warnings from scientists and international governments and independent energy organizations over the past quarter-century (see for instance IEA’s Bombshell Warning: We’re Headed Toward 11°F Global Warming and “Delaying Action Is a False Economy”) — it has gotten harder and harder for any of us to pretend that we are innocent victims, that we aren’t just hoping we can maintain our own personal wealth and well-being for a few more decades before the day of reckoning. Après nous le déluge.

In short, humanity has made Madoff look like a penny-ante criminal.

By enriching the authorities, as noted, we encouraged those with the most power to solve the problem to do nothing. Heck, the only way in which the global economy hasn’t become a Ponzi scheme is that everything being done is perfectly legal!

By most enriching those who did the most plundering, we enabled them to fund lobbying and disinformation campaigns to convince substantial fractions of the public and media that there is no Ponzi scheme — that global warming is “too complicated for the public to understand” and nothing to worry about.

And by “paying ourselves” with the wealth from future generations — indeed, from the next 50 generations and next 100 billion people to walk the earth (see NOAA stunner: Climate change “largely irreversible for 1000 years,” with permanent Dust Bowls in Southwest and around the globe) — we cleverly took advantage of victims not yet born, those not able to even know they were being robbed.

Madoff is reviled as a monster for targeting charities. We are targeting our own children and grandchildren and on and on. What does that make us?.

 

 

Multinational Greed Is Threatening The Stability Of Societies Across the Planet

In Uncategorized on July 26, 2013 at 2:13 pm

Oldspeak: “Around the globe, people are getting increasingly frustrated by governments going out of their way to ensure an enabling environment for big business while making drastic cuts in public spending on social welfare. This is fuelling alienation among electorates, spurring protests. Of great concern, is that those seeking to expose the nexus between governments and big business are being subjected to various forms of persecution with state complicity….. while the power of transnational corporations has expanded exponentially, income and wealth disparities are threatening to tear societies apart. The World Economic Forum’s 2013 annual survey of global risks identifies severe income disparity as a key concern likely to manifest itself over the next decade. The International Monetary Fund’s Managing Director has admitted that the top 0.5 percent of the globe’s population holds 35 per cent of its wealth . Civil society group, Oxfam estimated that in 2012, the world’s top 100 billionaires earned enough money to end poverty four times over.  ….But despite the grave warnings from civil society, governments and financial institutions continue to spin arguments about the need to privatise services when they should be focusing on how to make the public sector fit for purpose. Shockingly, during a global economic downturn, political leaders and captains of industry have together managed to subject ordinary people to double jeopardy: having to pay taxes to the state and then having to fork out profit-adjusted higher costs for privatised health, education, public transport, telecommunications, road works, electricity, water supply and so on. These services are indeed governments’ responsibility to provide as part of the social contract between citizens and the state.” -Mandeep Tiwana

“It seems pretty obvious at this point that the people who’ve profited the most from the 2008 global economic collapse, our corporate citizens who’ve been bailed out and are constantly being supported by monthly taxpayer financed subsidies via “Quantitive Easing” policies are driving the current global economic and ecological  downturn. Depressing wages, eliminating workers, stripping worker protections, destroying food and water supplies, taking ownership of all,  replacing jobs with living wages with jobs with slave wages, asserting supra-governmental control via a number of secret laws, directives, policies, treaties and trade agreements.  Logic dictates that fewer workers with less spending power = failing economy.  Yet this logic is ignored. This is happening world wide for the most part. It’s clear that the governments worldwide are no longer representative of their people. They’re serving as facilitators and gatekeepers of a global neo-feudalist control system being emplaced. The people continue to honor the social contract between them and the state while the state has thrown it out, and entered into a new contract with the 0.5%. How else to explain half the world living in poverty, when the 100 people could end it 4 times over. How else to explain GM and Chrysler being bailed out while the city around them, Detroit, is being allowed to go bankrupt, not mentioned ONCE in Obama’s latest rhetorical master speech on the U.S. Economy, even as he crowed about saving the U.S. Auto Industry. How else to explain Citigroup’s profits increasing by 42% as it cuts its workforce and makes more than 50% of its profits outside of the U.S.? We have to have real conversations about the fatal corruption of the capitalist system by greed for money. The system is irreparably corrupted by money and amorality. What do we do when a computer’s system is corrupted? We fix it, or if it’s beyond repair, we replace it with a new system. This is what must be done with our economic system. We must replace it.” – OSJ

By Mandeep Tiwana @ Al Jazzera English:

The people are angry. In Turkey, Brazil, and most recently again, Egypt, thousands have taken to the streets to voice their anger and frustration at the lack of social and economic justice. Political and economic elites, working in tandem, have managed to neutralise the aspirations of ordinary people, in part spurring the disenfranchisement driving the protests.

Whether it is the removal of subsidies  [3]protecting the poor against inflation and price shocks in Egypt, or the enormous cost of hosting high profile sporting events  [4]in Brazil at the expense of social services, or government plans to commercialise  [5]a beloved public park in the heart of Istanbul, the headlong embrace of neoliberal economic policies by governments is likely to cause further dissatisfaction and unrest across the globe.

Neo-liberalism, using a dictionary definition, as a “modern politico-economic theory favouring free trade, privatisation, minimal government intervention, reduced public expenditure on social services etc.,” reduces the responsibility of the state while promoting privatisation to favour those with access to resources and influence. It is playing havoc with the lives and livelihoods of ordinary people.

Despite mainstream perceptions, the sad reality is that free markets don’t automatically regulate themselves nor do they naturally respect individual or community rights. In Indonesia [6], people are choking from fires set by agricultural companies to clear forests to allow mammoth palm oil plantations to flourish. In the United States [7], popular demands for effective gun control are being blocked by congressmen bankrolled by the arms industry. In Ethiopia [8], thousands have been displaced through forced villagisation programmes to make way for agricultural companies that want to make land more “productive.” In Spain  [9]and inGreece [10], public property such as hospitals and airports are being sold to private players to make the economy more “nimble.” In the UK [11], frustration is mounting about tax evasion by transnational corporations whose turnover exceeds the GDP of many countries, while the average citizen continues to dutifully pay their fair share of taxes.

Around the globe, people are getting increasingly frustrated by governments going out of their way to ensure an enabling environment for big business while making drastic cuts in public spending on social welfare. This is fuelling alienation among electorates, spurring protests. Of great concern, is that those seeking to expose the nexus between governments and big business are being subjected to various forms of persecution with state complicity.

In Cambodia [12], land rights activists opposing official plans to forcibly acquire land for big companies have been subjected to brutal attacks by security forces and lengthy prison terms. In Honduras [13], peasant farmers’ groups involved in land disputes with companies have been subjected to murderous attacks.  InIndia [14], peaceful activists ideologically opposed to the government’s economic policy have been charged under draconian laws of being members of outlawed terrorist organisations. In Canada [15], non-profit groups opposed to the conservative government’s policy of loosening environmental restrictions to enable extraction of oil and gas from ecologically sensitive zones have been subjected to surveillance and funding cuts, while being accused of being obstructive of the country’s economic development.

Widening income inequality

Worryingly, while the power of transnational corporations has expanded exponentially, income and wealth disparities are threatening to tear societies apart. The World Economic Forum’s 2013 annual survey of global risks identifies severe income disparity [16] as a key concern likely to manifest itself over the next decade. The International Monetary Fund’s Managing Director has admitted that the top 0.5 percent of the globe’s population holds 35 per cent of its wealth [17]. Civil society group, Oxfam estimated that in 2012, the world’s top 100 billionaires earned enough money to end poverty four times over [18]. CIVICUS, the global civil society alliance has argued in its annual report  [19]that the discourse on inequality is becoming commonplace with the 1 percent vs the 99 percent meme entering the mainstream.

But despite the grave warnings from civil society, governments and financial institutions continue to spin arguments about the need to privatise services when they should be focusing on how to make the public sector fit for purpose. Shockingly, during a global economic downturn, political leaders and captains of industry have together managed to subject ordinary people to double jeopardy: having to pay taxes to the state and then having to fork out profit-adjusted higher costs for privatised health, education, public transport, telecommunications, road works, electricity, water supply and so on. These services are indeed governments’ responsibility to provide as part of the social contract between citizens and the state.

In the past, the political and economic elite have erroneously sought to deride the occupy movements,indignados and anti-corruption protestors as fringe elements without clear vision or majority support. But with greater numbers of people taking to the streets to voice their dissatisfaction against corruption, environmental degradation and top down austerity policies, decision makers have a reality check staring them in the face. But will they right the ship on neo-liberal economic policies when they are privately profiting from it? Perhaps citizen action will help answer that.

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Links:
[1] http://english.aljazeera.net/
[2] http://www.alternet.org/authors/mandeep-tiwana
[3] http://www.guardian.co.uk/commentisfree/2012/dec/21/egyptians-held-back-neoliberalism-not-religion
[4] http://www.aljazeera.com/indepth/features/2013/06/2013619134555233454.html
[5] http://www.aljazeera.com/programmes/witness/2013/07/20137112549633235.html
[6] http://www.greenpeace.org/international/en/press/releases/Palm-oil-companies-must-come-clean-on-Indonesian-fire-hotspots—Greenpeace/
[7] http://www.forbes.com/sites/frederickallen/2013/04/18/gun-control-a-congress-of-cowards/
[8] http://www.hrw.org/news/2012/01/16/ethiopia-forced-relocations-bring-hunger-hardship
[9] http://iberosphere.com/2013/06/spain-news-private-sector-moves-into-spains-public-hospitals/8701
[10] http://pathfinderbuzz.com/resilience-makes-greek-ports-attractive/
[11] http://www.guardian.co.uk/business/2012/nov/12/starbucks-tax-avoidance-controversy
[12] https://www.civicus.org/media-centre-129/61-press-releases/1030-cambodia-civicus-calls-for-unconditional-release-of-detained-activists
[13] http://www.amnesty.org/en/library/asset/AMR37/003/2013/en/4fabe3f5-648c-4192-9383-06ae42fa9922/amr370032013en.html
[14] http://www.hrw.org/news/2013/06/26/india-stop-misuse-counterterrorism-laws
[15] http://socs.civicus.org/?p=3825
[16] http://reports.weforum.org/global-risks-2013/
[17] http://www.imf.org/external/np/speeches/2013/051513.htm
[18] http://www.oxfam.org/en/pressroom/pressrelease/2013-01-19/annual-income-richest-100-people-enough-end-global-poverty-four-times
[19] http://socs.civicus.org/wp-content/uploads/2013/04/2013StateofCivilSocietyReport_full.pdf
[20] http://www.alternet.org/tags/neoliberalism
[21] http://www.alternet.org/%2Bnew_src%2B

How to Destroy A Planet Without Really Trying: Humanity’s Path To Disaster

In Uncategorized on June 4, 2013 at 8:25 pm

Oil Refinery.Oldspeak: “So, at one extreme you have indigenous, tribal societies trying to stem the race to disaster.  At the other extreme, the richest, most powerful societies in world history, like the United States and Canada, are racing full-speed ahead to destroy the environment as quickly as possible.  Unlike Ecuador, and indigenous societies throughout the world, they want to extract every drop of hydrocarbons from the ground with all possible speed. 

Both political parties, President Obama, the media, and the international press seem to be looking forward with great enthusiasm to what they call “a century of energy independence” for the United States.  Energy independence is an almost meaningless concept, but put that aside.  What they mean is: we’ll have a century in which to maximize the use of fossil fuels and contribute to destroying the world.

And that’s pretty much the case everywhere.” – Noam Chomsky

It didn’t take long.  In the immediate aftermath of the dropping of the “victory weapon,” the atomic bomb, on two Japanese cities in August 1945, American fears and fantasies ran wild.  Almost immediately, Americans began to reconceive themselves as potential victims of the bomb.  In the scenarios of destruction that would populate newspapers, magazines, radio shows, and private imaginations, our cities were ringed with concentric circles of destruction and up to 10 million people in the U.S. and tens of millions elsewhere died horribly in a few days of imagined battle.  Even victory, when it came in those first post-war years of futuristic dreams of destruction, had the look of defeat.  And the two wartime American stories — of triumphalism beyond imagining and ashes — turned out to be incapable of cohabiting in the same forms.  So the bomb fled the war movie (where it essentially never made an appearance) for the sci-fi flick in which stand-ins of every sort – alien superweapons and radioactive reptilian and other mutant monsters — destroyed the planet, endangered humanity, and pursued the young into every drive-in movie theater in the country.

As late as 1995, those two stories, the triumphalist end of “the Good War” and the disastrous beginning of the atomic age, still couldn’t inhabit the same space.  In that 50th anniversary year, a planned exhibit at the National Air and Space Museum that was supposed to pair the gleaming fuselage of the Enola Gay, the B-29 that carried the first atomic bomb to Hiroshima, with the caramelized remains of a schoolchild’s lunchbox (“No trace of Reiko Watanabe was ever found”) would be cancelled.  The outrage from veterans’ groups and the Republican right was just too much, the discomfort still too strong.

Until 1945, of course, the apocalypse had been the property of the Bible, and “end times” the province of God (and perhaps a budding branch of pulp lit called science fiction), but not of humanity.  Since then, it’s been ours, and as it turned out, we were acting apocalyptically in ways that weren’t apparent in 1945, that weren’t attached to a single wonder weapon, and that remain difficult to grasp and even deal with now.  With that in mind, and with thanks to Javier Navarro, we have adapted a video interview done with TomDispatch regular Noam Chomsky by What, the association Navarro helped to found.  Reworked by Chomsky himself, it offers his thoughts on a perilous future that is distinctly in our hands. ” -Tom Engelhardt

Our Grand Era Of “Savage Capitalism” will come to an end. Whether we like it or not. It’s not a matter of if but when. Get Apocalyptic.

By Noam Chomsky @ Tomsdispatch:

What is the future likely to bring?  A reasonable stance might be to try to look at the human species from the outside.  So imagine that you’re an extraterrestrial observer who is trying to figure out what’s happening here or, for that matter, imagine you’re an historian 100 years from now — assuming there are any historians 100 years from now, which is not obvious — and you’re looking back at what’s happening today.  You’d see something quite remarkable.

For the first time in the history of the human species, we have clearly developed the capacity to destroy ourselves.  That’s been true since 1945.  It’s now being finally recognized that there are more long-term processes like environmental destruction leading in the same direction, maybe not to total destruction, but at least to the destruction of the capacity for a decent existence.

And there are other dangers like pandemics, which have to do with globalization and interaction.  So there are processes underway and institutions right in place, like nuclear weapons systems, which could lead to a serious blow to, or maybe the termination of, an organized existence.

How to Destroy a Planet Without Really Trying

The question is: What are people doing about it?  None of this is a secret.  It’s all perfectly open.  In fact, you have to make an effort not to see it.

There have been a range of reactions.  There are those who are trying hard to do something about these threats, and others who are acting to escalate them.  If you look at who they are, this future historian or extraterrestrial observer would see something strange indeed.  Trying to mitigate or overcome these threats are the least developed societies, the indigenous populations, or the remnants of them, tribal societies and first nations in Canada.  They’re not talking about nuclear war but environmental disaster, and they’re really trying to do something about it.

In fact, all over the world — Australia, India, South America — there are battles going on, sometimes wars.  In India, it’s a major war over direct environmental destruction, with tribal societies trying to resist resource extraction operations that are extremely harmful locally, but also in their general consequences.  In societies where indigenous populations have an influence, many are taking a strong stand.  The strongest of any country with regard to global warming is in Bolivia, which has an indigenous majority and constitutional requirements that protect the “rights of nature.”

Ecuador, which also has a large indigenous population, is the only oil exporter I know of where the government is seeking aid to help keep that oil in the ground, instead of producing and exporting it — and the ground is where it ought to be.

Venezuelan President Hugo Chavez, who died recently and was the object of mockery, insult, and hatred throughout the Western world, attended a session of the U.N. General Assembly a few years ago where he elicited all sorts of ridicule for calling George W. Bush a devil.  He also gave a speech there that was quite interesting.  Of course, Venezuela is a major oil producer.  Oil is practically their whole gross domestic product.  In that speech, he warned of the dangers of the overuse of fossil fuels and urged producer and consumer countries to get together and try to work out ways to reduce fossil fuel use.  That was pretty amazing on the part of an oil producer.  You know, he was part Indian, of indigenous background.  Unlike the funny things he did, this aspect of his actions at the U.N. was never even reported.

So, at one extreme you have indigenous, tribal societies trying to stem the race to disaster.  At the other extreme, the richest, most powerful societies in world history, like the United States and Canada, are racing full-speed ahead to destroy the environment as quickly as possible.  Unlike Ecuador, and indigenous societies throughout the world, they want to extract every drop of hydrocarbons from the ground with all possible speed.

Both political parties, President Obama, the media, and the international press seem to be looking forward with great enthusiasm to what they call “a century of energy independence” for the United States.  Energy independence is an almost meaningless concept, but put that aside.  What they mean is: we’ll have a century in which to maximize the use of fossil fuels and contribute to destroying the world.

And that’s pretty much the case everywhere.  Admittedly, when it comes to alternative energy development, Europe is doing something.  Meanwhile, the United States, the richest and most powerful country in world history, is the only nation among perhaps 100 relevant ones that doesn’t have a national policy for restricting the use of fossil fuels, that doesn’t even have renewable energy targets.  It’s not because the population doesn’t want it.  Americans are pretty close to the international norm in their concern about global warming.  It’s institutional structures that block change.  Business interests don’t want it and they’re overwhelmingly powerful in determining policy, so you get a big gap between opinion and policy on lots of issues, including this one.

So that’s what the future historian — if there is one — would see.  He might also read today’s scientific journals.  Just about every one you open has a more dire prediction than the last.

“The Most Dangerous Moment in History”

The other issue is nuclear war.  It’s been known for a long time that if there were to be a first strike by a major power, even with no retaliation, it would probably destroy civilization just because of the nuclear-winter consequences that would follow.  You can read about it in the Bulletin of Atomic Scientists.  It’s well understood.  So the danger has always been a lot worse than we thought it was.

We’ve just passed the 50th anniversary of the Cuban Missile Crisis, which was called “the most dangerous moment in history” by historian Arthur Schlesinger, President John F. Kennedy’s advisor.  Which it was.  It was a very close call, and not the only time either.  In some ways, however, the worst aspect of these grim events is that the lessons haven’t been learned.

What happened in the missile crisis in October 1962 has been prettified to make it look as if acts of courage and thoughtfulness abounded.  The truth is that the whole episode was almost insane.  There was a point, as the missile crisis was reaching its peak, when Soviet Premier Nikita Khrushchev wrote to Kennedy offering to settle it by a public announcement of a withdrawal of Russian missiles from Cuba and U.S. missiles from Turkey.  Actually, Kennedy hadn’t even known that the U.S. had missiles in Turkey at the time.  They were being withdrawn anyway, because they were being replaced by more lethal Polaris nuclear submarines, which were invulnerable.

So that was the offer.  Kennedy and his advisors considered it — and rejected it.  At the time, Kennedy himself was estimating the likelihood of nuclear war at a third to a half.  So Kennedy was willing to accept a very high risk of massive destruction in order to establish the principle that we — and only we — have the right to offensive missiles beyond our borders, in fact anywhere we like, no matter what the risk to others — and to ourselves, if matters fall out of control. We have that right, but no one else does.

Kennedy did, however, accept a secret agreement to withdraw the missiles the U.S. was already withdrawing, as long as it was never made public.  Khrushchev, in other words, had to openly withdraw the Russian missiles while the U.S. secretly withdrew its obsolete ones; that is, Khrushchev had to be humiliated and Kennedy had to maintain his macho image.  He’s greatly praised for this: courage and coolness under threat, and so on.  The horror of his decisions is not even mentioned — try to find it on the record.

And to add a little more, a couple of months before the crisis blew up the United States had sent missiles with nuclear warheads to Okinawa.  These were aimed at China during a period of great regional tension.

Well, who cares?  We have the right to do anything we want anywhere in the world.  That was one grim lesson from that era, but there were others to come.

Ten years after that, in 1973, Secretary of State Henry Kissinger called a high-level nuclear alert.  It was his way of warning the Russians not to interfere in the ongoing Israel-Arab war and, in particular, not to interfere after he had informed the Israelis that they could violate a ceasefire the U.S. and Russia had just agreed upon.  Fortunately, nothing happened.

Ten years later, President Ronald Reagan was in office.  Soon after he entered the White House, he and his advisors had the Air Force start penetrating Russian air space to try to elicit information about Russian warning systems, Operation Able Archer.  Essentially, these were mock attacks.  The Russians were uncertain, some high-level officials fearing that this was a step towards a real first strike.  Fortunately, they didn’t react, though it was a close call.  And it goes on like that.

What to Make of the Iranian and North Korean Nuclear Crises

At the moment, the nuclear issue is regularly on front pages in the cases of North Korea and Iran.  There are ways to deal with these ongoing crises.  Maybe they wouldn’t work, but at least you could try.  They are, however, not even being considered, not even reported.

Take the case of Iran, which is considered in the West — not in the Arab world, not in Asia — the gravest threat to world peace.  It’s a Western obsession, and it’s interesting to look into the reasons for it, but I’ll put that aside here.  Is there a way to deal with the supposed gravest threat to world peace?  Actually there are quite a few.  One way, a pretty sensible one, was proposed a couple of months ago at a meeting of the non-aligned countries in Tehran.  In fact, they were just reiterating a proposal that’s been around for decades, pressed particularly by Egypt, and has been approved by the U.N. General Assembly.

The proposal is to move toward establishing a nuclear-weapons-free zone in the region.  That wouldn’t be the answer to everything, but it would be a pretty significant step forward.  And there were ways to proceed.  Under U.N. auspices, there was to be an international conference in Finland last December to try to implement plans to move toward this.  What happened?

You won’t read about it in the newspapers because it wasn’t reported — only in specialist journals.  In early November, Iran agreed to attend the meeting.  A couple of days later Obama cancelled the meeting, saying the time wasn’t right.  The European Parliament issued a statement calling for it to continue, as did the Arab states.  Nothing resulted.  So we’ll move toward ever-harsher sanctions against the Iranian population — it doesn’t hurt the regime — and maybe war. Who knows what will happen?

In Northeast Asia, it’s the same sort of thing.  North Korea may be the craziest country in the world.  It’s certainly a good competitor for that title.  But it does make sense to try to figure out what’s in the minds of people when they’re acting in crazy ways.  Why would they behave the way they do?  Just imagine ourselves in their situation.  Imagine what it meant in the Korean War years of the early 1950s for your country to be totally leveled, everything destroyed by a huge superpower, which furthermore was gloating about what it was doing.  Imagine the imprint that would leave behind.

Bear in mind that the North Korean leadership is likely to have read the public military journals of this superpower at that time explaining that, since everything else in North Korea had been destroyed, the air force was sent to destroy North Korea’s dams, huge dams that controlled the water supply — a war crime, by the way, for which people were hanged in Nuremberg.   And these official journals were talking excitedly about how wonderful it was to see the water pouring down, digging out the valleys, and the Asians scurrying around trying to survive.  The journals were exulting in what this meant to those “Asians,” horrors beyond our imagination.  It meant the destruction of their rice crop, which in turn meant starvation and death.  How magnificent!  It’s not in our memory, but it’s in their memory.

Let’s turn to the present.  There’s an interesting recent history.  In 1993, Israel and North Korea were moving towards an agreement in which North Korea would stop sending any missiles or military technology to the Middle East and Israel would recognize that country.  President Clinton intervened and blocked it.  Shortly after that, in retaliation, North Korea carried out a minor missile test.  The U.S. and North Korea did then reach a framework agreement in 1994 that halted its nuclear work and was more or less honored by both sides.  When George W. Bush came into office, North Korea had maybe one nuclear weapon and verifiably wasn’t producing any more.

Bush immediately launched his aggressive militarism, threatening North Korea — “axis of evil” and all that — so North Korea got back to work on its nuclear program.  By the time Bush left office, they had eight to 10 nuclear weapons and a missile system, another great neocon achievement.  In between, other things happened.  In 2005, the U.S. and North Korea actually reached an agreement in which North Korea was to end all nuclear weapons and missile development.  In return, the West, but mainly the United States, was to provide a light-water reactor for its medical needs and end aggressive statements.  They would then form a nonaggression pact and move toward accommodation.

It was pretty promising, but almost immediately Bush undermined it.  He withdrew the offer of the light-water reactor and initiated programs to compel banks to stop handling any North Korean transactions, even perfectly legal ones.  The North Koreans reacted by reviving their nuclear weapons program.  And that’s the way it’s been going.

It’s well known.  You can read it in straight, mainstream American scholarship.  What they say is: it’s a pretty crazy regime, but it’s also following a kind of tit-for-tat policy.  You make a hostile gesture and we’ll respond with some crazy gesture of our own.  You make an accommodating gesture and we’ll reciprocate in some way.

Lately, for instance, there have been South Korean-U.S. military exercises on the Korean peninsula which, from the North’s point of view, have got to look threatening.  We’d think they were threatening if they were going on in Canada and aimed at us.  In the course of these, the most advanced bombers in history, Stealth B-2s and B-52s, are carrying out simulated nuclear bombing attacks right on North Korea’s borders.

This surely sets off alarm bells from the past.  They remember that past, so they’re reacting in a very aggressive, extreme way.  Well, what comes to the West from all this is how crazy and how awful the North Korean leaders are.  Yes, they are.  But that’s hardly the whole story, and this is the way the world is going.

It’s not that there are no alternatives.  The alternatives just aren’t being taken. That’s dangerous.  So if you ask what the world is going to look like, it’s not a pretty picture.  Unless people do something about it.  We always can.

Noam Chomsky is Institute Professor Emeritus in the MIT Department of Linguistics and Philosophy.  A TomDispatch regular, he is the author of numerous best-selling political works, including Hopes and Prospects, Making the Future, and most recently (with interviewer David Barsamian), Power Systems: Conversations on Global Democratic Uprisings and the New Challenges to U.S. Empire (The American Empire Project, Metropolitan Books).

[Note: This piece was adapted (with the help of Noam Chomsky) from an online video interview done by the website What, which is dedicated to integrating knowledge from different fields with the aim of encouraging the balance between the individual, society, and the environment.]

Follow TomDispatch on Twitter and join us on Facebook or Tumblr. Check out the newest Dispatch book, Nick Turse’s The Changing Face of Empire: Special Ops, Drones, Proxy Fighters, Secret Bases, and Cyberwarfare.

 

Betray Your Bank Before Your Bank Betrays You

In Uncategorized on April 1, 2013 at 3:06 pm

Oldspeak: “It seems a lot of customers were oblivious to the banks’ deteriorating health, or were confident they would be cared for by somebody else.” -Jonathan WeilHmmm… Sounds familiar. With U.S. megabanks engaging in the same rampant illegality, fraud, & reckless bad bets that triggered the last global economic collapse and holding more derivatives (the same toxic synthetic derivatives that crashed the global economic system last time) than that the entire global GDP, it’s not a matter of if your bank will betray you, but when. Yet, most, are oblivious.  Since the 2008, the United States economy has been like a ticking time bomb with the unregulated activities of the banks the fuse that is slowly burning. The U.S. banking system is basically insolvent.  The U.S. treasury is printing billions upon billions in increasingly devalued funny money while the Fed (a privately owned bank controlled by U.S. megabanks) is buying billions in toxic assets and securities from the insolvent megabanks to keep them in business and give the appearance of solvency. The accrued power of these giant criminal enterprises is threatening the globe again. The theft of depositors money in Cyprus is the tip of the iceberg. This will be replicated in other countries, including the U.S. and U.K.   Don’t remain oblivious to your banks deteriorating health. You would be wise to move your money to a locally oriented bank or credit union. Before it is confiscated to enrich well-appointed thieves.

Move Your Money Project

By Johnathan Weil @ Bloomberg News:

What’s a Slovenian with several hundred thousand euros in the bank supposed to do? Spread it out among at least a few different banks, that’s what. Or move the money out of the country, while it’s still possible.

Imagine what must be on the minds of any savvy depositors still left at Nova Kreditna Banka Maribor d.d., now 79 percent- owned by Slovenia’s government. It was one of only four lenders in October that failed the European Banking Authority’s latest capital-adequacy test, a ritual best known for how lax its standards are. One that flunked was Bank of Cyprus Pcl, where uninsured depositors face 40 percent losses as part of the country’s bailout terms. Another was Cyprus Popular Bank Pcl, also known as Laiki Bank, where uninsured deposits will fare far worse and the bank is being shut.

Cypriot banks’ customers were complacent after uninsured deposits went unscathed in Ireland, Greece, Spain and Portugal, the first euro-area countries to seek international rescues. Slovenians won’t have that excuse should their country be next.

The former Yugoslav republic needs about 3 billion euros ($3.8 billion) of funding this year, while its struggling banks need 1 billion euros of fresh capital, the International Monetary Fund said last week. Slovenia’s central bank this week urged the country’s new government to quickly carry out a plan to recapitalize ailing lenders. It’s a familiar pattern.

Oblivious Customers

The Central Bank of Cyprus warned months ago that the country’s banks needed an infusion of 10 billion euros — which is more than half the size of the nation’s economy — largely because of heavy losses on Greek sovereign debt held by Laiki and Bank of Cyprus. It seems a lot of customers were oblivious to the banks’ deteriorating health, or were confident they would be cared for by somebody else. The country is getting a 10 billion-euro bailout, nine months after it first asked for aid, except none of the money will go to the banks.

Suddenly it should be dawning on a lot of Europeans that deposit-guarantee limits matter. In Slovenia, the maximum is 100,000 euros per depositor, the same as in Cyprus. (Deposit- insurance programs vary among the 17 countries that use the euro.) For a few days last week, it looked as if customers at Laiki and Bank of Cyprus would lose even some of their insured deposits, which would have been a sacrilege.

That plan was scrapped, but could resurface elsewhere for all we know should some genius at the German Finance Ministry insist upon it. The one constant among bailouts of euro-area countries is that there is no rhyme or reason, much less fairness, in the way many details get worked out.

Cypriots may bemoan the inequities of their rough treatment, as might a bunch of wealthy Russians who mistook the island for a reliable financial center and failed to yank their money when they could. For the rest of Europe, the implications should be obvious. Anyone who leaves uninsured deposits in a euro-area bank is on notice that their money can and will be taken from them, if that is what’s demanded by the troika of the IMF, the European Commission and the European Central Bank.

Uninsured deposits aren’t riskless. Nor should they be. Still, it’s unclear why the euro area’s central planners sought to create a precedent that encourages capital flight from weak countries. This could lead to more instability, not less.

So far, there have been no signs of a mass exodus in countries such as Italy or Spain. But deposit migrations can happen slowly, with lots of time passing before they appear in official statistics. Or maybe little will change and most bank customers will go on believing “it can’t happen here,” until one day it does.

Restoring Normalcy

Much good might come from restoring some semblance of normalcy to the hierarchy of creditors in banking. Even better would be to see Germany try it for a change with its own zombie lenders, such as Commerzbank AG (CBK), which is still partly government-owned after its bailout in 2009.

The way it’s supposed to work at failing banks is that shareholders get wiped out first. Next the losses go up the ladder from junior debt holders to senior bondholders, and then all the way to uninsured depositors, if need be. Taxpayers and insured depositors shouldn’t have to absorb others’ losses or put money at risk to spare them. Troubled banks should have to fend for themselves.

This was the approach imposed on Cyprus. In ordinary circumstances, it would be considered fair. The best argument for why it wasn’t is that Cyprus had been lulled into believing it would be treated just as well as Europe’s other bailout recipients. The entire country got hooked on moral hazard.

Now Cyprus may be the template for the future, regardless of European governments’ recent statements to the contrary. If a bankrupt euro-area country can’t afford to recapitalize its own insolvent banks, it will have to “bail in” their owners and creditors first as a condition of receiving outside aid. Or at least that’s what Dutch Finance Minister Jeroen Dijsselbloem said this week in an outburst of candor, before later retracting the statement after it triggered declines in European markets.

Wealthy depositors in Spain, Italy, Greece and elsewhere should assume he was speaking the truth the first time and take measures to protect their money, rather than trusting governments to do it for them.

(Jonathan Weil is a Bloomberg View columnist. The opinions expressed are his own.)

To contact the writer of this article: Jonathan Weil in New York at jweil6@bloomberg.net

To contact the editor responsible for this article: James Greiff at jgreiff@bloomberg.net

Welcome to the Network of Global Corporate Control: Meet the Global Corporate “Supra-Government”

In Uncategorized on February 12, 2013 at 7:36 pm

we-the-corporations-article

Oldspeak: “This small network of dominant global companies and banks, many of which are larger than most countries on earth, with no democratic accountability, are also acting independently as a type of “global supra-government” forcing even our dysfunctional and façade-like “democratic” governments to collapse if they do not do as “financial markets” say – such as the recent cases of democratically-elected governments in Greece and Italy whose officials were forced out and replaced with unelected bankers. In any other situation that’s called a coup d’état. Powerful government officials will not oppose this network, whether or not the power is good for human lives and human communities.” -Andrew Gavin Marshall “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.” -Roger Altman, the former Deputy Secretary of the Treasury under the Clinton administration. Behold! The fruits of “free markets”, globalization, & unfettered capitalism. Workers around the world being fleeced, literally worked to death. People suffering with poverty, malnutrition, homelessness. The environment we all depend on being depleted, poisoned, destroyed… all to relentlessly maximize profits for the “supra-government” ever tightening its grip on power and all the while obliterating every day, incrementally, civil, human, natural and economic rights & freedoms. This system is not working. It must be changed.

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Revealed: The Transnational Corporate Network That Runs The World

By Andrew Gavin Marshall @ AndrewGavinMarshall.Com:

Part 1: Meet the Global Corporate “Supra-Government”

We live in a corporate culture, where most of us have worked or currently work for corporations, we spend our money at corporate venues, on corporate products, watch corporately-owned television shows and movies, listen to corporate-sponsored music; our modes of transportation, communication and recreation are corporately influenced or produced; our sports stadiums and movie theaters are named after car companies and global banks; our food is genetically altered by multinational conglomerates, our drinking water is brought to us by Coca-Cola, our news is brought to us by Pfizer, and our political leaders are brought to us by Exxon, Shell, Goldman Sachs and JP Morgan Chase.

In this global corporate culture it is often difficult to take a step back and look at transnational corporations, beyond what they represent in our culture, and see that they are, in fact, totalitarian institutions with power being exercised from the top down, with no democratic accountability, legally bound to be interested only – and exclusively – in maximizing quarterly short-term profits, often to the detriment of the environment, labor, human rights, democracy, peace and the population as a whole.

In this first of a three-part series on the reaches of global corporate power, we’ll look specifically at the size and network influence of the world’s largest corporations. This is especially important given that the world’s population faces increasing challenges with over 1 billion people living in slums, billions more living in poverty, hunger and increasing starvation; with unemployment increasing, austerity and “adjustment” programs demanding that even those in the once-industrialized West dramatically reduce their living standards; as the environment is plundered and pillaged, and as governments give corporations more state welfare and subsidies while cutting welfare and social services for the poor.

Corporate culture creates, over time, a totalitarian culture as this dominant institution seeks to remake society in its own image – where people are punished and impoverished as corporations are supported, rewarded and empowered.

The network of global corporate control, in numbers

In the year 2000, of the world’s 100 largest economies, 51 were corporations, while only 49 were countries, based upon national GDP (gross domestic product) and corporate sales. Of the top 200 corporations in 2000, the United States had the largest share with 82, followed by Japan at 41, Germany at 20, and France at 17.

Of the world’s 100 largest economic entities in 2010, 42% were corporations; when looking at the top 150 economic entities, 58% were corporations. The largest corporation in 2010 was Wal-Mart, the 25th largest economic entity on earth, surpassed only by the 24 largest countries in the world, but with greater revenues than the GDP of 171 countries, placing it higher on the list than Norway and Iran.

Following Wal-Mart, the largest corporations in the world were: Royal Dutch Shell (larger than Austria, Argentina and South Africa), Exxon Mobil (larger than Thailand and Denmark), BP (larger than Greece, UAE, Venezuela and Colombia), followed by several other energy and automotive conglomerates.

In 2012, Fortune published its annual Global 500 list of the top 500 corporations in the world in 2011. The top 10 corporations in the world, as determined by total revenue, are: Royal Dutch Shell, Exxon Mobil, Wal-Mart Stores, BP, Sinopec Group, China National Petroleum, State Grid, Chevron, ConocoPhillips, and Toyota Motor.

Among some of the other top 100 are: Total (11), Gazprom (15), E.ON (16), ENI (17), ING Group (18), GM (19), General Electric (22), AXA (25), BNP Paribas (30), GDF Suez (33), Banco Santander (44), Bank of America (46), JP Morgan Chase (51), HSBC Holdings (53), Apple (55), IBM (57), Citigroup (60), Société Générale (67), Nestlé (71), Wells Fargo (80), Archer Daniels Midland (92), and Bank of China (93).

The 10 largest corporations in Canada include: Manulife Financial, Suncor Energy, Royal Bank of Canada, Power Corporation of Canada, George Weston, Magna International, Toronto-Dominion Bank, Bank of Nova Scotia, Onex, and Husky Energy.

The 10 largest corporations in Britain are: BP, HSBC Holdings, Tesco, Vodafone, Barclays, Lloyds Banking Group, Royal Bank of Scotland, Aviva, Rio Tinto Group, and Prudential.

The 10 largest conglomerates in France are: Total, AXA, BNP Paribas, GDF Suez, Carrefour, Crédit Agricole, Société Générale, Électricité de France, Peugeot, and Groupe BPCE.

The 10 largest conglomerates in Germany are: Volkswagen, E. ON, Daimler, Allianz, Siemens, BASF, BMW, Metro, Munich Re Group, and Deutsche Telekom.

The 10 largest conglomerates in the United States are: Exxon Mobil, Wal-Mart Stores, Chevron, ConocoPhillips, General Motors, General Electric, Berkshire Hathaway, Fannie Mae, Ford Motor, and Hewlett-Packard.

In October of 2011, a scientific study about the global financial system was released, the first of its kind, undertaken by three complex systems theorists at the Swiss Federal Institute of Technology in Zurich, Switzerland. The conclusion of the study revealed what many theorists and observers have noted for years:

“An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.” As one of the researchers stated, “Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market… Our analysis is reality-based.” Using a database which listed 37 million companies and investors worldwide, the researchers studied all 43,060 trans-national corporations (TNCs), including the share ownerships linking them.

The mapping of “power” was done through the construction of a model showing which companies controlled other companies through shareholdings. The web of ownership revealed a core of 1,318 companies with ties to two or more other companies. This “core” was found to own roughly 80% of global revenues for the entire set of 43,000 TNCs.

And then came what the researchers referred to as the “super-entity” of 147 tightly-knit companies, which all own each other, and collectively own 40% of the total wealth in the entire network. One of the researchers noted, “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network.”

This network poses a huge risk to the global economy, noted the researchers: “If one [company] suffers distress… this propagates.” The study was undertaken with a data set established prior to the economic crisis, thus, as the financial crisis forced some banks to fail (such as Lehman Brothers) and others to merge (such as Merrill Lynch and Bank of America), the “super-entity” would now be even more connected, concentrated, and thus, dangerous for the economy.

The top 50 companies on the list of the “super-entity” included (as of 2007): Barclays Plc (1), Capital Group Companies Inc (2), FMR Corporation (3), AXA (4), State Street Corporation (5), JP Morgan Chase & Co. (6), UBS AG (9), Merrill Lynch & Co Inc (10), Deutsche Bank (12), Credit Suisse Group (14), Bank of New York Mellon Corp (16), Goldman Sachs Group (18), Morgan Stanley (21), Société Générale (24), Bank of America Corporation (25), Lloyds TSB Group (26), Lehman Brothers Holdings (34), Sun Life Financial (35), ING Groep (41), BNP Paribas (46), and several others.

In December of 2011, Roger Altman, the former Deputy Secretary of the Treasury under the Clinton administration, wrote an article for the Financial Times in which he explained that financial markets were “acting like a global supra-government,” noting:

“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.”

Altman continued, explaining that when the power of this “global supra-government” is flexed, “the immediate impact on society can be painful – wider unemployment, for example, frequently results and governments fail.” But of course, being a former top Treasury Department official, he went on to praise the “global supra-government,” writing that, “the longer-term effects can be often transformative and positive.”

Ominously, Altman concluded: “Whether this power is healthy or not is beside the point. It is permanent,” and “there is no stopping the new policing role of the financial markets.”

So, this small network of dominant global companies and banks, many of which are larger than most countries on earth, with no democratic accountability, are also acting independently as a type of “global supra-government” forcing even our dysfunctional and façade-like “democratic” governments to collapse if they do not do as “financial markets” say – such as the recent cases of democratically-elected governments in Greece and Italy whose officials were forced out and replaced with unelected bankers.

In any other situation that’s called a coup d’état. But as Altman’s view reflected, powerful government officials will not oppose this network, whether or not the power is good for human lives and human communities – which is, in Altman’s words, “beside the point.” After all, in his view, “it is permanent.”

Unless, of course, the people of the world decide to have a say in the matter.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project and has a weekly podcast show with BoilingFrogsPost.

Overdose: The Next Financial Crisis

In Uncategorized on December 20, 2012 at 6:09 pm

Oldspeak: ““Ultimately there is going to be a price all around the world to be paid for this and the longer it continues the bigger that price is going to be.” – Peter P. Schiff, President Euro Pacific CapitalWhen the world’s financial bubble blew, the solution was to lower interest rates and pump trillions of dollars into the sick banking system. “The solution is the problem, that’s why we had a problem in the first place”. For Economics Nobel laureate Vernon Smith, the Catch 22 is self-evident. But interest rates have been at rock bottom for years, and governments are running out of fuel to feed the economy. “The governments can save the banks, but who can save the governments?” Forecasts predict all countries’ debt will reach 100% of GDP by next year. Greece and Iceland have already crumbled, who will be next?” The bailout bubble will inevitably pop. It is many times larger than any other financial bubble yet seen and it is global. Corporations world wide are being bailed out by governments, but as we’ve seen in Greece, Iceland, Spain, Italy, Portugal, governments themselves are collapsing under weight of the bailouts. Now governments need bailouts, ceding control to technocrats who go about the business of privatizing public assets, cutting social services and increasing taxes to facilitate extraction of the government and nations resources. Conditions are very much similar to those that existed in 2008 before the last collapse.   When it pops this will be the mother of all bubbles.  Interest rates are at or near zero across much of the world. There is no more rate lowering to be done to make possible more “stimulus packages”. It will be very interesting to see how thing proceed past that point.  My guess is not well.

Overdose: The Next Financial Crisis

https://www.youtube.com/watch?feature=player_embedded&v=4ECi6WJpbzE

Why So Secretive? The Trans-Pacific Partnership As Global Corporate Coup

In Uncategorized on November 28, 2012 at 1:46 pm

A summit with leaders of the member states of the Trans-Pacific Strategic Economic Partnership Agreement (TPP) in November, 2010. Pictured, from left, are Naoto Kan (Japan), Nguyễn Minh Triết (Vietnam), Julia Gillard (Australia), Sebastián Piñera (Chile), Lee Hsien Loong (Singapore), Barack Obama (United States), John Key (New Zealand), Hassanal Bolkiah (Brunei), Alan García (Peru), and Muhyiddin Yassin (Malaysia). Six of these leaders represent countries that were negotiating to join the group.

Oldspeak:The agreement stipulates that foreign corporations operating in the United States would no longer be subject to domestic U.S. laws regarding protections for the environment, finance or labor rights, and could appeal to an “international tribunal” which would be given the power to overrule American law and impose sanctions on the U.S. for violating the new “rights” of corporations… The international corporate tribunal would allow corporations to overturn national laws and regulations or demand enormous sums in compensation, with the tribunal “empowered to order payment of unlimited government Treasury funds to foreign investors over TPP claims…. It contains proposals designed to give transnational corporations special rights that go far beyond those possessed by domestic businesses and American citizens… The TPP would criminalize some everyday uses of the Internet,…force service providers to collect and hand over your private data without privacy safeguards, and give media conglomerates more power to send you fines in the mail, remove online content – including entire websites – and even terminate your access to the Internet….there can be heavy fines for average citizens online….you could be fined for clicking on a link, people could be knocked off the Internet and web sites could be locked off…. A proposal that could have such broad effects on environmental, consumer safety and other public interest regulations deserves public scrutiny and debate. It shouldn’t be crafted behind closed doors.” While U.S. corporate media is dutifully focused the imaginary “Fiscal Cliff” crisis,   In secret, behind closed doors, with technocrats smiling and waving in public, the transition to a transnational corporate network dominated one world government, a la Buy & Large  is continuing. This current phase of global corporate consolidation follows the previous implementation of the Transatlantic Economic Partnership, focusing primarily again on “trade liberalization”, and  “regulatory convergence” in nearly 40 areas, including intellectual property, financial services, business takeovers and the motor industry. Here we have governments, voluntarily ceding their authority to govern and regulate their nations to multinational corporations via “international corporate tribunals”. A one world government that will govern access to EVERYTHING. All while we shop our way to collapse. This is not sustainable, for the people or the planet.  Please educate yourself about these trade agreements and resist by any means you can.  “Ignorance Is Strength”, “Freedom Is Slavery”

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By Andrew Gavin Marshall @ Occupy.com:

he Trans-Pacific Partnership is the most secretive and “least transparent” trade negotiations in history.

Luckily for the populations and societies that will be affected by the agreement, there are public research organizations and alternative media outlets campaigning against it – and they’ve even released several leaks of draft agreement chapters. From these leaks, which are not covered by mainstream corporate-controlled news outlets, we are able to get a better understanding of what the Trans-Pacific Partnership actually encompasses.

For example, public interest groups have been warning that the TPP could result in millions of lost jobs. As a letter from Congress to United States Trade Representative Ron Kirk stated, the TPP “will create binding policies on future Congresses in numerous areas,” including “those related to labor, patent and copyright, land use, food, agriculture and product standards, natural resources, the environment, professional licensing, state-owned enterprises and government procurement policies, as well as financial, healthcare, energy, telecommunications and other service sector regulations.”

In other words, as promised, the TPP goes far beyond “trade.”

Dubbed by many as “NAFTA on steroids” and a “corporate coup,” only two of the TPP’s 26 chapters actually have anything to do with trade. Most of it grants far-reaching new rights and privileges to corporations, specifically related to intellectual property rights (copyright and patent laws), as well as constraints on government regulations.

The leaked documents revealed that the Obama administration “intends to bestow radical new political powers upon multinational corporations,” as Obama and Kirk have emerged as strong advocates “for policies that environmental activists, financial reform advocates and labor unions have long rejected for eroding key protections currently in domestic laws.”

In other words, the already ineffective and mostly toothless environmental, financial, and labor regulations that exist are unacceptable to the Obama administration and the 600 corporations aligned with the TPP who are giving him his orders.

The agreement stipulates that foreign corporations operating in the United States would no longer be subject to domestic U.S. laws regarding protections for the environment, finance or labor rights, and could appeal to an “international tribunal” which would be given the power to overrule American law and impose sanctions on the U.S. for violating the new “rights” of corporations.

The “international tribunal” that would dictate the laws of the countries would be staffed by corporate lawyers acting as “judges,” thus ensuring that cases taken before them have a “fair and balanced” hearing – fairly balanced in favor of corporate rights above anything else.

A public interest coalition known as Citizens Trade Campaign published a draft of the TPP chapter on “investment” revealing information about the “international tribunal” which would allow corporations to directly sue governments that have barriers to “potential profits.”

Arthur Stamoulis, the executive director of Citizens Trade Campaign, explained that the draft texts “clearly contain proposals designed to give transnational corporations special rights that go far beyond those possessed by domestic businesses and American citizens… A proposal that could have such broad effects on environmental, consumer safety and other public interest regulations deserves public scrutiny and debate. It shouldn’t be crafted behind closed doors.”

Public Citizen’s Global Trade Watch, a public interest organization, undertook an analysis of the leaked document on investment and explained that the international corporate tribunal would allow corporations to overturn national laws and regulations or demand enormous sums in compensation, with the tribunal “empowered to order payment of unlimited government Treasury funds to foreign investors over TPP claims.”

Even under NAFTA, over $350 million has been paid by NAFTA-aligned governments to corporations for “barriers” to investment “rights,” including toxic waste dumps, logging rules, as well as bans on various toxic chemicals.

Because let’s be clear: for corporations, such regulations and concerns over health, safety and environmental issues are perceived solely as “barriers” to investment and profit. Thus their “government” would sue the foreign government on behalf of the corporation, on the premise that such regulations led to potential lost profits, for which the corporation should be compensated.

The TPP allows the corporations to directly sue the government in question. All of the TPP member countries, except for Australia, have agreed to adhere to the jurisdiction of this international tribunal, an unelected, anti-democratic and corporate-staffed kangaroo-court with legal authority over at least ten nations and their populations.

Further, TPP countries have not agreed on a set of obligations for corporations to meet in relation to health, labor or environmental standards, and thus a door is opened for corporations to obtain even more rights and privileges to plunder and exploit. Where corporate rights are extended, human and democratic rights are dismantled.

One of the most important areas in which the TPP has a profound effect is in relation to intellectual property rights, or copyright and patent laws. Corporations have been strong advocates of expanding intellectual property rights, namely, their intellectual property rights.

Pharmaceutical corporations are major proponents of these rights and are likely to be among the major beneficiaries of the intellectual property chapter of the TPP. The pharmaceutical industry ensured that strong patent rules were included in the 1995 World Trade Organization agreement, but ultimately felt that those rules did not go far enough.

Dean Baker, writing in the Guardian, explained that stronger patent rules establish “a government-granted monopoly, often as long as 14 years, that prohibits generic competitors from entering a market based on another company’s test results that show a drug to be safe and effective.” Baker noted that such laws are actually “the opposite of free trade” since they “involve increased government intervention in the market” and “restrict competition and lead to higher prices for consumers.”

Essentially, what this means is that in poor countries where more people need access to life-saving drugs, and at cheaper cost, it would be impossible for companies or governments to manufacture and sell cheaper generic brands of successful drugs held by multinational corporate patents. Such an agreement would hand over a monopoly of price-controls to these corporations, allowing them to set the prices as they deem fit, thus making the drugs incredibly expensive and often inaccessible to the people who need them most.

As U.S. Congressman Henry Waxman correctly noted, “In many parts of the world, access to generic drugs means the difference between life and death.”

The TPP is expected to increase such corporate patent rights more than any other agreement in history. Generic drug manufacturers in countries like Vietnam and Malaysia would suffer. So would sales of larger generics manufacturers in the U.S., Canada, and Australia, which supply low-cost drugs to much of the world.

While the United States has given up the right to negotiate drug prices with pharmaceutical corporations (hence the exorbitant price for drugs purchased in the U.S.), countries like New Zealand and even Canada to a lesser extent negotiate drug prices in order to keep the costs down for consumers. The TPP will grant new negotiating privileges to corporations, allowing them to appeal decisions by governments to challenge the high cost of drugs or to go with cheap alternatives. Referring to these changes, the U.S. manager of Doctors Without Borders’ Access to Medicines Campaign stated, “Bush was better than Obama on this.”

But that’s not all the TPP threatens: Internet freedom is also a major target.

The Council of Canadians and OpenMedia, major campaigners for Internet freedom, have warned that the TPP would “criminalize some everyday uses of the Internet,” including music downloads as well as the combining of different media works. OpenMedia warned that the TPP would “force service providers to collect and hand over your private data without privacy safeguards, and give media conglomerates more power to send you fines in the mail, remove online content – including entire websites – and even terminate your access to the Internet.”

Also advanced under the TPP chapter on intellectual property rights, new laws would have to be put in place by governments to regulate Internet usage. OpenMedia further warned that, from the leaked documents on intellectual property rights, “there can be heavy fines for average citizens online,” adding: “you could be fined for clicking on a link, people could be knocked off the Internet and web sites could be locked off.”

The TPP, warned OpenMedia founder Steve Anderson, “will limit innovation and free expression.” Under the TPP, there is no distinction between commercial and non-commercial copyright infringement. Thus, users who download music for personal use would face the same penalties as those who sell pirated music for profit.

Information that is created or shared on social networking sites could have Internet users fined, have their computers seized, their Internet usage terminated, or even get them a jail sentence. The TPP imposes a “three strikes” system for copyright infringement, where three violations would result in the termination of a household’s Internet access.

So, why all the secrecy? Corporate and political decision-makers study public opinion very closely; they know how to manipulate the public based upon what the majority think and believe. When it comes to “free trade” agreements, public opinion has forced negotiators into the darkness of back-room deals and unaccountable secrecy precisely because populations are so overwhelmingly against such agreements.

An opinion poll from 2011 revealed that the American public has – just over the previous few years – moved from “broad opposition” to “overwhelming opposition” toward NAFTA-style trade deals.

A major NBC News-Wall Street Journal poll from September of 2010 revealed that “the impact of trade and outsourcing is one of the only issues on which Americans of different classes, occupations and political persuasions agree,” with 86% saying that outsourcing jobs by U.S. companies to poor countries was “a top cause of our economic woes,” with 69% thinking that “free trade agreements between the United States and other countries cost the U.S. jobs.” Only 17% of Americans in 2010 felt that “free trade agreements” benefit the U.S., compared to 28% in 2007.

Because public opinion is strongly – and increasingly – against “free trade agreements,” secrecy is required in order to prevent the public from even knowing about, let alone actively opposing, agreements like the Trans-Pacific Partnership. And this, as U.S. Trade Representative Kirk explained, is a very “practical” reason for all the secrecy.

Human Civilisation Will Collapse Unless Culture Of Greed & Excessive Consumerism Is Stopped, Report Warns

In Uncategorized on April 7, 2012 at 1:39 pm

Oldspeak:“Infinite ‘Growth’ and unfettered consumption is unsustainable on a finite planet. Despite this obvious and basic fact, many civilizations before ours have tried and failed with this toxic economic model as will ours if we don’t make fundamental changes to our cultures now. The stakes are incalculably higher now as our seemingly incurable strain of virulent capitalism has spread across the globe to most all dominant cultures, even those that have thrived for thousands of years like China & India have adopted a view of greed as success. We are exhausting our planet’s resources much faster than it can replenish them, and its finite resources disappearing ever faster.  This can only go on for so long before supplies are unable to support our careless and voracious demands. We must free ourselves from the crushing yoke of our transnational corporate overseers, driving us relentlessly via their ubiquitous and insidious consumption propaganda networks to work ever harder and longer for ever more fiat currency to consume ever more things we don’t need, creating ever more waste and pollution we’re running out of places to dump. We need Barefoot Economics. Now.

Related Video:

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By Andrew Hough @ The U.K. Guardian:

The world’s population is burning through the planet’s resources at such a reckless rate – about 28 per cent more last year – it will eventually cause environmental havoc, said the Worldwatch Institute, a US think-tank.

In its annual State of the World 2010 report, it warned any gains from government action on climate change could be wiped out by the cult of consumption and greed unless changes in our lifestyle were made.

Consumerism had become a “powerful driver” for increasing demand for resources and consequent production of waste, with governments, including the British, too readily wanting to promoted it as necessary for job creation and economic well-being.

More than £2.8 trillion of stimulus packages had been poured into economies to pull the world out of the global recession, it found, with only a small amount into green measures.

But the think tank warned that without a “wholesale transformation” of cultural patterns the world would not be able to “prevent the collapse of human civilisation”.

The think tank found that over the past decade consumption of goods and services had risen by 28 per cent to $30.5 trillion (£19bn) – with the world digging up the equivalent of 112 Empire State Buildings of material every day.

The average American consumes more than his or her weight in products each day, many US two year-olds can recognise the McDonald’s “Golden Archers” sign, although they cannot read the letter, and an average western family spends more on their pet than by someone trying to live in Bangladesh.

A cultural shift from consumption to valuing sustainable living was needed because government targets and new technology were not enough to rescue humanity from ecological and social threats.

Without action, humans faced problems including changing climates, obesity epidemics, declines in wildlife, loss of agricultural land and more production of hazardous waste.

Consumerism it said had “taken root in culture upon culture over the past half-century … (and) become a powerful driver of the inexorable increase in demand for resources and production of waste that marks our age”.

Erik Assadourian, the institute’s project director, said it was “no longer enough to change our light bulbs, we must change our very cultures”.

At current consumption rates, 200 square metres of solar panels a second and 24 wind turbines every hour were needed to be built to satisfy energy levels.

The think tank said it was not just the United States that was guilty of a culture of excess with other developing countries such as Brazil, India and China adopting greed as a success symbol.

China, one of the world’s biggest greenhouse gas emissions producers, recently overtook the US as the world’s top car market.

“More than 6.8 billion human beings are now demanding ever greater quantities of material resources, decimating the world’s richest ecosystems, and dumping billions of tons of heat-trapping gases into the atmosphere each year,” the report said.

This number will only increase as people in the developing world aspire towards a Western-styled consumer lifestyle.

Mr Assadourian added: “Until we recognise that our environmental problems, from climate change to deforestation to species loss, are driven by unsustainable habits, we will not be able to solve the ecological crises that threaten to wash over civilisation.

“We’ve seen some encouraging efforts to combat the world’s climate crisis in the past few years.

“But making policy and technology changes while keeping cultures centered on consumerism and growth can only go so far.”

He said such measures such as banning incandescent light bulbs and steering children away from consumerism through toy libraries would help.

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

In Uncategorized on October 4, 2011 at 5:17 pm


Oldspeak
:”With Megabanks carrying 50 to 1 leverage on a hundreds of trillions dollar sized largely unregulated and non-public OTC derivatives market, the next collapse of the global economic system is not a matter of if, but when. “OTC derivatives are an unregulated dark pool of money with no public market.  These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities.  According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. (Click here for the complete Comptroller of the Currency report.)  As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding!” -Greg Hunter It’s going to be really interesting to see what happens when this gargantuan house of cards falls down. I’ll bet quite a few more people will be for occupying wall street then.”

By Greg Hunter @ USAWatchdog.com :

I keep hammering away at the fact the Fed doled out $16 trillion in the wake of the credit crisis of 2008.  This is an enormous sum that is greater than the all goods and services produced in the U.S. in a single year.  Domestic banks and companies got the money, right along with foreign banks and companies.  In effect, the Federal Reserve bailed out the world financial system.  Now, we are right back to square one facing another financial meltdown with European banks and sovereign debt.  If the Fed spent $16 trillion, why in the heck is this problem not fixed and why isn’t the world economy taking off like a rocket?”  The simple answer is it wasn’t enough money.

The Bank of International Settlements pegs the total world over-the-counter (OTC) derivative exposure at around $600 trillion, but many experts say the real figure is more than twice that amount.  No matter which figure you use, it is a gargantuan sum.  OTC derivatives are an unregulated dark pool of money with no public market.  These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities.  According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. (Click here for the complete Comptroller of the Currency report.)  As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding!  The banks are listed below in order of size and approximate OTC exposure:

1.)     JP MORGAN CHASE BANK NA OH

$78.1 trillion OTC derivatives

2.)    CITIBANK NATIONAL ASSN

$56.1 trillion OTC derivatives

3.)    BANK OF AMERICA NA NC

$53.15 trillion OTC derivatives

4.)    GOLDMAN SACHS BANK USA NY

$47.7 trillion OTC derivatives

Considering that the total assets of these four banks are a little more than $5 trillion, I see a frightening amount of risk with a total derivative exposure of $235 trillion!  This is nearly 50 to 1 leverage.  On top of that, assets such as real estate or mortgage-backed securities can be held on the books at whatever value the banks think they can sell them for in the future.  I call this government sanctioned accounting fraud, or mark to fantasy accounting.  Who knows what the true value of the banks “assets” really are.

I am sure the banks would say that the net exposure is really not near that great because the banks have hedged their bets.  The banks will probably say, by and large, these debt bets will cancel out or back up one another.  It is known in the banking world as “bilateral netting.”  A recent article in Zerohedge.com explained the enormous risk by saying, “The best example of how the flaw behind bilateral netting almost destroyed the system is AIG: the insurance company was hours away from making trillions of derivative contracts worthless if it were to implode, leaving all those who had bought protection from the firm worthless, a contingency only Goldman hedged by buying protection on AIG. And while the argument can further be extended that in bankruptcy a perfectly netted bankrupt entity would make someone else whole on claims they have written, this is not true, as the bankrupt estate will pursue 100 cent recovery on its claims even under Chapter 11, while claims the estate had written end up as General Unsecured Claims which as Lehman has demonstrated will collect 20 cents on the dollar if they are lucky.”(Click here to read the complete Zerohedge.com story.) 

The global economy is still in trouble.  Everyone is focusing on Europe because the sovereign debt crisis there is likely to cause the European Union to break apart and kill the Euro.  The Head of UniCredit global securities, Attila Szalay-Berzeviczy said recently, “The euro is beyond rescue . . . . “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits . . . . A Greek default will trigger an immediate “magnitude 10” earthquake across Europe.” (Click here for more on that story.)  If the EU goes under, do not expect all the highly leveraged U.S. banks to walk away unscathed.  They will need another bailout to stay afloat.

You must remember the U.S. still is at the epicenter of the ongoing credit crisis.  At the moment, America looks like it is in better shape than Europe, but that will not last.  According to the latest report from John Williams of Shadowstats.com“The root source of current global systemic instabilities largely has been the financially-dominant United States, and it is against the U.S. dollar that the global markets ultimately should turn, massively.  The Fed and the U.S. Treasury likely will do whatever has to be done to prevent a euro-area crisis from triggering a systemic collapse in the United States.  Accordingly, it is not from a euro-related crisis, but rather from within the U.S. financial system and financial-authority actions that an eventual U.S. systemic failure likely will be triggered, seen initially in a rapidly accelerating pace of domestic inflation—ultimately hyperinflation.” 

Sure, the dollar may gain in value for a while in absence of the Euro as a competing currency, but, ultimately, the dollar too will crash, right along with a few very big banks.

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