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

Posts Tagged ‘Wall Street’

War Is A Racket: The Profit Motive Behind Warfare

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

WALL STREET IS WAR STREET

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

By Major General Smedley Darlington Butler:

CHAPTER ONE

War Is A Racket

WAR is a racket. It always has been.

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

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

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

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

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

And what is this bill?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yes, and what does it profit the nation?

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

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

CHAPTER TWO

Who Makes The Profits?

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

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

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

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

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

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

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

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

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

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

A little increase in profits of approximately 200 per cent.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

CHAPTER THREE

Who Pays The Bills?

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

But the soldier pays the biggest part of the bill.

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

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

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

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

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

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

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

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

Napoleon once said,

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

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

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

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

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

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

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

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

But wait!

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

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

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

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

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

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

CHAPTER FOUR

How To Smash This Racket!

WELL, it’s a racket, all right.

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

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

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

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

Why shouldn’t they?

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

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

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

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

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

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

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

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

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

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

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

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

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

CHAPTER FIVE

To Hell With War!

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

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

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

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

Money.

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

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

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

So . . . “

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

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

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

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

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

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

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

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

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

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

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

So…I say,

TO HELL WITH WAR!

Advertisements

Another Government Is Necessary: The People Can Rule Better Than the Elites

In Uncategorized on May 7, 2013 at 7:46 pm

Oldspeak: “Transformation requires a combination of education about solutions, resistance to stop policies or projects that are causing harm, and working together to create solutions to our urgent crises.  One of the greatest obstacles to change in the United States is the Democratic Party. While it is true that the Wall Street agenda of the Republican Party is dangerous, the Democratic Party is even more dangerous because it can act on the same agenda without much more than a whimper by many of those who would protest if the Republicans did the same thing. Fortunately, more people are opening their eyes to the duopoly… This is the US managed democracy: a system that only allows the election of corporate duopoly candidates backed by great wealth. The current system is designed to exclude third-party candidates and low-income and minority voters. And the system is designed to hinder building the grassroots movement that is necessary for social transformation. The urgency of our current crises demands that we break from the current structure and create something new based on principles such as community, cooperation, participation and sustainability. Most people recognize what must be done, and many communities are already taking action.” –Margaret Flowers and Kevin Zeese.  Vesting power in corporate sponsored politicians will inexorably lead to government for the corporations, by the corporations.  One can see this in any number of obvious examples. Multi-trillion dollar bailouts for corporations who repeatedly engage in criminal business practices that crashed the global economy, while the people who need bailouts most are saddled with debt, austerity measures, & poverty-stricken existence. Unwavering commitment by corporocrats to continue investing resources in earth and life killing dirty energy sources. Unequal enforcement of the law, based on caste, where high caste citizens generally avoid punishment, for heinous offenses like laundering drug money for terrorists any falsely foreclosing on people’s homes while middle and low-caste citizens are incarcerated at historic rates for non-crimes like walking between subway cars, and bidding on land T Unprecedented prosecution of patriotic and law-abiding  Americans; government whistleblowers who’ve tried to expose fraud, waste and illegality.  Etc, etc, etc, ad infinitum. This state of affairs cannot continue. Government for the people and by the people needs to be restored. Democracy’s gone, oligarchical collectivism reigns.”

By Margaret Flowers and Kevin Zeese @ Truthout:
More people are taking action in their communities to meet their basic needs because of government corruption at all levels that protects the status quo when urgent change is needed. People are moving on many fronts to challenge the system and create the world they want to see.On Earth Day, another step was taken to challenge elite rule. A new alternative government was announced. It is an extension of the Jill Stein and Cheri Honkala Green Party campaign for president and vice president. The Green Shadow Cabinet currently consists of more than 80 activists, scientists, lawyers, advocates, economists, health professionals, labor leaders and artists who are independent of the corporate duopoly and are actively working on solutions to the crises we face. These top-level people in their fields have taken on this responsibility as volunteers. (Full disclosure: Margaret Flowers serves as secretary of health and Kevin Zeese as attorney general, and both serve on the administrative committee of the Shadow Cabinet.) The cabinet comes at a time when people are increasingly ready to leave the corrupt two-party system. With President Obama supporting cuts to Social Security and Medicare, drone-bombing countries with which we are not at war, and appointing Wall Street and other big business interests to his cabinet, many voters are searching for somewhere to go. Even the former head of the Democratic Party, Howard Dean, is talking about leaving the Democrats.

The cabinet will serve as an independent voice in US politics, putting the needs of people and protection of the planet ahead of profits for big corporations. Members of the cabinet will demonstrate what an alternative government could look like. However, creating an alternative form of governance will depend in large part on what people do at the local level.

Another World Is Possible; Another Government Is Necessary

Shadow cabinets have existed in other countries throughout history. They are usually created by opposition parties as a way to show what they stand for as they work toward regaining power. This Shadow Cabinet is different in a few aspects.

First, the Green Shadow Cabinet is a response to the corruption and dysfunction of the current economic and political systems. There are real solutions to the crises we face and majorities of the public support these solutions, but both parties in government are not considering them and are, in fact, doing the opposite.

The people could rule better than the elites, and that is why it is time for the people to take matters into our own hands. As cabinet member Christopher Cox explained on the day of the announcement, “There is no time for slow incremental change.” Cox also affirmed that “We have the possibility of addressing these issues at the level of humanity.” The Cabinet is not waiting, but is taking action now to encourage people to build a government that is really of, by and for the people.

And second, because political debate in the United States is limited to what the two corporate parties allow, the Cabinet will bring attention to real solutions to our crises that are not being discussed. At present, there is no discussion of full employment, even though that is a critical ingredient to creating an economy that works for everyone. There is no discussion of ending the carbon-nuclear–based energy economy, despite the crisis of climate change, the risks of carbon-nuclear energies to air, water, and life, and the obvious end of the cheap oil and gas era.

One of the goals of the Shadow Cabinet is to inject these issues into the US political dialogue. For example, here are excerpts of statements some cabinet members released on the day the Cabinet was announced:

  • Two members of the economic team wrote statements. Richard Wolff, who chairs the Council of Economic Advisers, calls for tax fairness with progressive taxation, more higher income tax brackets and increased corporate taxes consistent with the successful policies used when the United States built a powerful post-World War II-economy. Labor economist Jack Rasmus points to the failure of fiscal policy and will be urging a makeover of the Federal Reserve into a transparent and democratic agency that responds to the needs of the economy, not to the banks.
  • Leah Bolger, defense secretary, urges a truly defensive military and calls for an end to the Afghanistan War, a 50 percent cut in Pentagon spending, cessation of the drone program and operating within the rule of law. David Swanson, secretary of peace, highlights the militarization of US foreign policy, which sells record numbers of weapons and spends nearly as much as the whole world combined on war. Noting he has no counterpart in the current government, he urges the United States to work for peace every day and asserts that investing war dollars in job creation at home will do more for the economy than spending $1 trillion on war and war preparation.
  • David Cobb, chair of the commission on corporations and democracy, begins by acknowledging that corporations have become the most dominant institution in America who rule over us “as masters once ruled slaves and as Kings ruled their subjects.” The solution to corporate power? “We must educate, agitate and organize. In other words, we must change the culture of this country.”
  • Roshan Bliss, the assistant secretary for higher education, says “Education is a human right, a public good, and a critical infrastructure without which no society can prosper.” As a student, he sees how outdated, underfunded and increasingly controlled by unaccountable private interest groups higher education has become. His top two priorities: empower students to be all they can become and equip schools to uplift society and be integrated in their communities.
  • Steve Chrismer, secretary of transportation, notes that when he went to Texas to join the Tar Sands Blockade, he thought about how few jobs were created by the pipeline compared to how many jobs would be created by a new mass transit and rail system. He believes we need to recreate the transportation system and build infrastructure that will serve the nation for generations, rather than pipelines that hasten our destruction.
  • Mark Dunlea, secretary of agriculture, calls for a new food system that is sustainable, affordable and not based on pesticides or other chemicals, but produces healthy foods and fair profits for farmers. The current food czar is a former Monsanto executive whose policies favor corporatization of farming, subsidies that result in overuse of water, widespread use of chemicals and allowing genetically modified foods. Dunlea’s views are echoed by Maureen Cruise, assistant secretary of health for community wellbeing, who promotes urban farming to bring food to the people who live in food deserts.

We published statements, too. Margaret coordinates the health council and advocates for Medicare-for-all as part of the solution to the health crisis in the United States. Kris Alman and Patch Adams join her in calling for breaking free of corporate medicine, and Adams urges communities to act now to build community-based health centers, calling for “revolutionizing health care delivery by replacing greed and competition with generosity, compassion and interdependence.”

Kevin, who coordinates the justice council, emphasizes the need for rule of law, which includes holding corporations accountable for both environmental damage and for collapsing the economy; rule of law also means ending the torture of confinement without charges at Guantanamo. Cliff Thornton, administrator of drug policy, calls for the end of the war on drugs and highlights the problems of mass incarceration, crime, violence and urban neglect, all made worse by the drug war. Their immediate task is putting forward policies to respect the will of voters in Colorado and Washington who voted to legalize marijuana, as well as of those in the 16 states and Washington, DC that allow medical use of marijuana.

In addition to publishing statements, Cabinet members are involved in advocacy and activism. Last weekend, six members participated in the anti-drone protest at the Hancock Air Force base, and a few days earlier, three participated in the protests at the Bush Library. Cheri Honkala is preparing for the May 18-24 Operation Green Jobs March on Washington. And the cabinet includes activists like climate justice’s Tim DeChrisotpher, labor leader Richard Monje, economic democracy advocate Gar Alperovitz and others. Many Cabinet members are working to build the nonviolent, transformative mass movement that is needed to bring real change to the United States.

While the cabinet evolved out of the Stein-Honkala campaign, it is not a project of the Green Party and is not limited to the Green Party. It is open to anyone who is independent of the duopoly and supportive of the Stein-Honkala Green New Deal platform.

In some ways, the cabinet is structured similarly to the current system, with a president, vice president, secretary of state, and heads of various government agencies. This was felt to be important at this stage so that media and the public would recognize that whomever was speaking on a given issue was acting as an alternative to those who currently hold these positions. When someone in power makes a statement or puts forth a policy, the corresponding cabinet member will respond with an alternative view.

However, the cabinet is structured differently from the current system in that it is composed of six branches: Democracy, Ecology, Economy, Foreign Affairs, General Welfare and Justice. Within these branches, in addition to traditional positions, are councils and new positions, so it is larger and less hierarchical than a traditional cabinet. Over time, we anticipate that more new positions will be added, the councils will grow and the structure will evolve.

If the people of the United States put another government in place, the mistakes of the past should not be repeated. It is time to truly create a participatory democratic structure where people have greater control over and benefit from the policies that affect them. An alternative system must be protected from becoming another top-down structure that ignores the voices and desires of the people.

The United States: A Managed Democracy That Protects Plutocrats

It was necessary to create the cabinet to break out of the mirage democracy of managed elections. Although citizens have the right to vote, the choice is restricted to candidates who are selected by large corporations and the wealthy elite. They represent political parties that are dominated by Wall Street, the military-industrial complex and other big business interests. Third-party candidates are at an extreme disadvantage, and our most vulnerable populations are losing the right to vote.

Efforts to build parties and run independent candidates outside of the duopoly encounter major obstacles, especially at the national level. Ballot access laws vary from state to state, and it is not unusual for third parties who have done the work of collecting signatures and registering voters to see the legitimacy of their work challenged by boards of elections, state legislatures and judges from the duopoly. Third-party candidates find themselves spending so much time and energy to gain ballot access that there is little left for campaigning.

Since the United States does not have public funding of public elections, another obstacle is finances. The cost of running a campaign in the United States, especially at the federal level, is prohibitive. The Center for Responsive Politics reports that in 2012, the corporate duopoly presidential candidates spent $2 billion. And that doesn’t count the money spent on their behalf by super PACs, nonprofit political organizations, issue advocacy organizations and “shadow money.” Incumbent senators raised $11 million, nearly ten times what their challengers raised. And in the House, incumbents raised $1.5 million, more than six times what their challengers raised.

A third major obstacle is media and debate access. Media access depends on how much a candidate can spend or whether the media chooses to provide coverage. In general, there is a media blackout of third-party candidates, including in media polls on presidential preference

Third-party candidates are largely excluded from public debates and entirely excluded from the presidential debates. The League of Women Voters officially withdrew from the debates in 1988 because of excessive control of the debate format and lack of transparency by the corporate duopoly. In a strong statement, the LWV president said, “The League has no intention of becoming an accessory to the hoodwinking of the American public.”

In 1987, the corporate duopoly and their big business funders created a private corporation to sponsor the debates. They gave this debate an official sounding name, the Commission on Presidential Debates, so most people think it is a government commission. Each election, the duopoly negotiates a contract that determines who can participate, who will moderate, who can attend and what questions will be asked. The rules are set up to keep non-duopoly candidates out. And the corporate debate commission ensures that discussion remains within a narrow confine of what corporate interests allow.

In 2012, the Occupy movement and others exposed and protested the sham presidential debates. The Naked Emperor created this animated video to illustrate the political charade that is the presidential debates. People held rallies at each of the debate sites and Green candidates Stein and Honkala were arrested for trying to attend the debate in New York. As a result of these actions, three corporations withdrew from sponsoring the CPD, and independent media outlets and organizations held debates for third-party candidates.

While these were positive steps, the reality is that current restrictions to third party candidates completely prevent the election of a candidate that represents the will of people rather than large corporations. The ability of people to express their will through elections is further impeded by barriers to voting.

In many countries, registration to vote is universal. When citizens reach the legal age, they are automatically registered. In the United States, there are barriers to registration resulting in 70 million eligible voters who are not registered to vote. It is also becoming more common for voters to be erased from registration lists. And voter suppression through disenfranchisement and Election Day shenanigans is common.

The Sentencing Project estimates that 5.85 million Americans have lost the right to vote because of felony convictions. An astonishing number of African-Americans, 1 out of 13, no longer has the right to vote. As we wrote in” A Forest of Poisonous Trees: The US Criminal Injustice System,” the current economic and criminal justice systems result in the incarceration of massive numbers of people, which creates a vicious cycle such that those who are oppressed lose their ability to affect the system.

Over the past three years, more than 250 laws have been passed at the state level to suppress voting. These laws primarily target the elderly, young and minority voters, as documented in this March report by Project Vote. In addition to legal challenges to voting, tactics are used in minority communities to prevent people from voting. These include underequipped polling stations, moving polling stations without notice, and leafleting neighborhoods with misinformation about voting days and voting requirements.

This is the US managed democracy: a system that only allows the election of corporate duopoly candidates backed by great wealth. The current system is designed to exclude third-party candidates and low-income and minority voters. And the system is designed to hinder building the grassroots movement that is necessary for social transformation.

A System That Favors Corporate Profits Over People and the Planet

If there is any question about whether the current political system favors the wealthy, one need only turn to recent events. Last week, in an awesome display of bipartisanship, Congress repealed the Stop Trading on Congressional Knowledge, Act, known as the STOCK Act. This was a bill signed into law last year with great fanfare by President Obama. The law required that members of Congress and certain executive staffers publish their financial investments online in a searchable format. It was touted as an important step towards transparency and the rule of law. Remember that last year was an election year.

This year, it took all of ten seconds for the repeal to pass in the Senate and 14 seconds in the House. The unrecorded unanimous consent vote meant not a single member of Congress expressed dissent. The president quickly and quietly signed the repeal into law.

Now it will be more difficult for the public to know when elected officials are supporting policies that benefit them financially. For instance, when former senator John Kerry was appointed Secretary of State, it was revealed that he had investments in TransCanada, the company that is building the Keystone XL Pipeline. The State Department has authority to approve the pipeline, which is being protested by people in the United States and Canada because of its environmental impact. Indeed, Kerry had to divest nearly 100 stocks in order to avoid the conflicts of interest between his investments and his duties. Of course, the same conflicts of interest existed when he chaired the Foreign Relations Committee.

Another example is the deficit and austerity charade that was exposed last week. A doctoral student, Thomas Herndon, at the University of Massachusetts-Amherst analyzed an economic study published by Reinhart and Rogoff. The results of the Reinhart-Rogoff study were cited widely by politicians and pundits to justify cuts to social and other government programs. Herndon found significant errors in the study that make the findings inaccurate.

Reinhart and Rogoff are linked to the Peter G. Peterson Foundatio,n which has a mission to promote policies that end our legacy social insurances – Social Security, Medicare and Medicaid. The Peterson Foundation has been heavily involved in the federal budget process for most of Obama’s presidency. It provided staff support and funding to the deficit commission appointed by Obama in early 2010 and funded national “town halls” called “America Speaks.”

The chairs of the deficit commission, Alan Simpson and Erskine Bowles, have also played an important role in the ongoing effort to cut social insurances, including leading the new Fix the Debt campaign composed of more than 80 tax-dodging CEOs who are starting with a budget of $60 million to lobby and build public support for their austerity proposals.

Solutions Exist; Transformation Depends on You

The Shadow Cabinet will not change the world; that task is up to all of us. Transformation requires a combination of education about solutions, resistance to stop policies or projects that are causing harm, and working together to create solutions to our urgent crises.

One of the greatest obstacles to change in the United States is the Democratic Party. While it is true that the Wall Street agenda of the Republican Party is dangerous, the Democratic Party is even more dangerous because it can act on the same agenda without much more than a whimper by many of those who would protest if the Republicans did the same thing. Fortunately, more people are opening their eyes to the duopoly.

The urgency of our current crises demands that we break from the current structure and create something new based on principles such as community, cooperation, participation and sustainability. Most people recognize what must be done, and many communities are already taking action.

The Shadow Cabinet seeks to join and amplify those efforts and encourage more people to come together in their communities to form structures that solve problems through community-led initiatives and pressure on local governments. This can happen at the level of neighborhoods or through coalitions of organizations, or some communities may choose to form local shadow governments.

The people of the United States have the wisdom to do what needs to be done. The answers are part of our DNA. It is time to recognize and manifest our power.

You can listen to our interview about the Announcement of Green Shadow Cabinet with Cheri Honkala, Christopher Cox and Sean Sweeney on Clearing the FOG.

Wall Street’s Climate Finance Bonanza

In Uncategorized on April 24, 2013 at 12:01 pm

Oldspeak: “Washington is at it again, hijacking the debate about how to support the global transition to a low-carbon, climate-resilient economy — and keeping the public, the press, and even developing countries out of the conversation. They’re repeating the same tired story that rich governments are broke and thus have to call in the private sector to finance climate change solutions… In this corporate-oriented approach, countries would provide generous loan guarantees and export subsidies that sweeten investments for private firms and give them the chance to net big profits while leaving governments (and the taxpayers they represent) to cover the losses if investors’ bets don’t pay off. In today’s economy, mobilizing private finance means going to the capital markets to raise money. But relying on financial markets for funding to support renewable, clean energy or to resettle climate refugees would subordinate climate action to the speculative whims of bankers.” –By Janet Redman and Antonio Tricarico. That last sentence is the key point of this piece. The biosphere IS NOT subordinate to financial markets or the speculative whims of bankers. This all-encompassing life support system has existed and renewed itself for millennia. These artificially created and virulent systems are destroying our planetary life support system.  Bankers, financial markets and their speculative whims don’t matter on a dead planet.  Any “market-based” solution to climate change is doomed to failure, simply because “the market” regards the climate and the biosphere as mere externalities. You’d be wise to be wary of anyone touting market based solutions to climate change (“Cap and Trade”, “Clean Development Mechanisms”, “Reducing Emissions from Deforestation and Degradation“). There is only one market that matters. Our planet. Wall Street has demonstrated time and time again that it does not care about our planet. Why would we leave any plans to sustain it to wall street?!

 By Janet Redman and Antonio Tricarico @ The Huffington Post:

Government officials from an elite group of developed countries meeting in Washington, D.C. at the invitation of U.S. climate envoy Todd Stern appear to be on the brink of instigating yet another corporate handout and big bank giveaway — this time in the name of fighting climate change.

If it follows a recently leaked agenda, the meeting will focus on using capital markets to raise money for climate finance. The goal is to fill the void left by the United States and other developed nations that have failed to meet their legal obligations to deliver funding to poorer countries for climate programs.

In this corporate-oriented approach, countries would provide generous loan guarantees and export subsidies that sweeten investments for private firms and give them the chance to net big profits while leaving governments (and the taxpayers they represent) to cover the losses if investors’ bets don’t pay off. Wealthy countries would then be able to claim that they had moved billions of dollars of new climate investments.

Unfortunately, the projects best placed to benefit from large-scale private investment and market mechanisms — like mega-infrastructure projects and fossil fuel-powered ventures that hide behind a “low-carbon” label — are likely to be those that have fewest sustainable development benefits. In many cases, the funding will channel windfall profits to corporations that would have invested profitably even without these new channels of support.

The sad fact is that this has happened before. Nations spent five years negotiating the Kyoto Protocol — the only multilateral treaty to regulate emissions of greenhouse gasses and spell out binding targets for reducing climate pollution. But before the treaty was finalized in 1997, the United States led a push to replace the enforcement mechanism — a fine for missing reduction targets paid into a clean development fund — with a market mechanism meant to lower the cost of compliance for polluting companies. The accompanying clean development mechanism (CDM) was born so that companies in the industrialized world could purchase ultra-cheap carbon pollution credits from developing nations to offset their continued pollution at home.

In the end the United States pulled out of the Kyoto treaty. But by shifting a global regulatory regime into a market-based regime centered on enticing private-sector investment with promises of profitability, Washington left its mark.

A decade and half later, carbon markets have collapsed, developing countries are awash with carbon credits for which there is no demand, and the planet keeps getting warmer.

Meanwhile, the clean development mechanism has led to private sector investment in spurious projects like mega-hydropower dams and coal-fired power plants that have delivered little in the way of sustainable development outcomes — and in some cases have further harmed the environment and human health.

Passing the Buck

And now Washington is at it again, hijacking the debate about how to support the global transition to a low-carbon, climate-resilient economy — and keeping the public, the press, and even developing countries out of the conversation. They’re repeating the same tired story that rich governments are broke and thus have to call in the private sector to finance climate change solutions.

In today’s economy, mobilizing private finance means going to the capital markets to raise money. But relying on financial markets for funding to support renewable, clean energy or to resettle climate refugees would subordinate climate action to the speculative whims of bankers.

Americans have visceral reminders of the consequences of leaving decisions about critical needs to the market — the more than 1.6 million families locked out of their homes and the $2.5 trillion in taxpayer dollars handed over to bail out Wall Street and U.S. car companies are just two. Europeans can point to the recent bailout after the carbon bubble burst. If a global climate finance bubble were to burst, we wouldn’t just lose our houses; we might have lost our chance at averting catastrophic global warming.

Governments in the developed world shouldn’t pass the buck to the private sector. They must act now. They can start by cutting subsidies for fossil fuels, including for natural gas “fracking” in the United States, and set binding regulation for reducing climate change pollution. Then governments can adopt innovative ways to raise public money, like taxing pollution from shipping or financial transactions. Indeed, even a very low financial transactions tax would generate substantial revenue and deleverage capital markets.

And of course, if there is any hope of creating a new paradigm of climate-sound development, there will have to be a role for the private sector. But the micro, small, and medium enterprises of the developing world would be preferable partners to the multinational firms that have been responsible for sucking wealth and resources out of countries for decades, leaving pollution and poverty in their wake.

At some point — and for the sake of the future generations who will bear the results of our decisions, we hope it’s sooner rather than later — the government officials who place their bets on private finance will have to learn that putting corporate profits over the needs of climate-impacted people is a risk the rest of us are not willing to take.

Antonio Tricarico is director of the New Public Finance program of the Italian organization Re:Common based in Rome and a former economic correspondent at the Italian newspaper Il Manifesto.

Janet Redman is the co-director of the Sustainable Energy and Economy Network at the Institute for Policy Studies in Washington, DC.

Editorial support by Peter Certo and Oscar Reyes of the Institute for Policy Studies.

The Secret History Of The War Over Oil In Iraq: The Real Reason For The Iraq War

In Uncategorized on March 30, 2013 at 6:47 pm

Oldspeak: “Oil men, whether James Baker or George Bush or Dick Cheney, are not in the business of producing oil. They are in the business of producing profits. And that’s how George Bush won the war in Iraq. The invasion was not about “blood for oil”, but something far more sinister: blood for no oil. War to keep supply tight and send prices skyward. And they’ve succeeded. Iraq, capable of producing six to 12 million barrels of oil a day, still exports well under its old OPEC quota of three million barrels.” Behold! Grand Area Doctrine par excellence. “Military intervention at will…  it declared that the US has the right to use military force to ensure “uninhibited access to key markets, energy supplies, and strategic resources,” and must maintain huge military forces “forward deployed” in Europe and Asia “in order to shape people’s opinions about us” and “to shape events that will affect our livelihood and our security.” –Noam Chomsky. When you see the full length and breadth of the depraved and anti-human logic profit-hungry corporocrats concoct to serve their anti-democratic ends, all you can do is shake your head and sigh. Why? Why were over 100,ooo poor, working and middle class Americans killed and maimed? Why have 1,ooo,ooo Iraqi men women and children been killed, with untold numbers on of Americans & Iraqis poisoned and permanently disfigured via the rain of depleted uranium bullets and shells rained on Iraq? Artificially imposed scarcity to generate exorbitant profits, or in a word: Greed. They believe wholeheartedly in the immortal words of Gordon Gekko “Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA” They see the world as a “college of corporations, inexorably determined by the immutable bylaws of business“. They see the USA as a failing corporation, and they’re looting it before it goes bankrupt. Buying and selling everything that isn’t nailed down, including people. We the people are not really people in their eyes. We’re employees. Unsecured creditors. Revenue streams. All expendable, as evidenced by the breathtaking misadventures in Iraq. The ironic thing is this diabolical plan and illegal war, will help the planet as whole. 10 million less barrels of oil have been burned. The profits accumulated and trillions of dollars wasted are artificial. The real costs in lives and resources have been unacceptably and unnecessarily high. If things remain as they are, conditions will deteriorate. These resource wars will become more more frequent, when there isn’t enough to go around.  Sadly this secret history will not become public, I don’t expect corporate media to pick up on what this intrepid journalist has reported. The official stories and counter-stories have been inculcated. War crimes will continue to go unpunished. Could we expect anything else from a civilization that organizes itself around entities like  sociopathic multinational energy corporations?

By Greg Palast @ Vice Magazine:

Greg Palast is a New York Times bestselling author and fearless investigative journalist whose reports appear on BBC Television Newsnight and in The Guardian. Palast eats the rich and spits them out. Catch his reports and films at www.GregPalast.com, where you can also securely send him your documents marked, “confidential”.

Because it was marked “confidential” on each page, the oil industry stooge couldn’t believe the US State Department had given me a complete copy of their secret plans for the oil fields of Iraq.

Actually, the State Department had done no such thing. But my line of bullshit had been so well-practiced and the set-up on my mark had so thoroughly established my fake identity, that I almost began to believe my own lies.

I closed in. I said I wanted to make sure she and I were working from the same State Department draft. Could she tell me the official name, date and number of pages? She did.

Bingo! I’d just beaten the Military-Petroleum Complex in a lying contest, so I had a right to be chuffed.

After phoning numbers from California to Kazakhstan to trick my mark, my next calls were to the State Department and Pentagon. Now that I had the specs on the scheme for Iraq’s oil – that State and Defense Department swore, in writing, did not exist – I told them I’d appreciate their handing over a copy (no expurgations, please) or there would be a very embarrassing story on BBC Newsnight.

Within days, our chief of investigations, Ms Badpenny, delivered to my shack in the woods outside New York a 323-page, three-volume programme for Iraq’s oil crafted by George Bush’s State Department and petroleum insiders meeting secretly in Houston, Texas.

I cracked open the pile of paper – and I was blown away.

Like most lefty journalists, I assumed that George Bush and Tony Blair invaded Iraq to buy up its oil fields, cheap and at gun-point, and cart off the oil. We thought we knew the neo-cons true casus belli: Blood for oil.

But the truth in the Options for Iraqi Oil Industry was worse than “Blood for Oil”. Much, much worse.

The key was in the flow chart on page 15, Iraq Oil Regime Timeline & Scenario Analysis:

“…A single state-owned company …enhances a government’s relationship with OPEC.”

https://i0.wp.com/assets.vice.com/content-images/contentimage/no-slug/c2e001a56cbf6658dfc45f72dcf71b55.jpg
An infographic produced by the author presenting the Iraq war’s secret history. Click to enlarge.

Let me explain why these words rocked my casbah.

I’d already had in my hands a 101-page document, another State Department secret scheme, first uncovered by Wall Street Journal reporter Neil King, that called for the privatisation, the complete sell-off of every single government-owned asset and industry. And in case anyone missed the point, the sales would include every derrick, pipe and barrel of oil, or, as the document put it, “especially the oil”.

That plan was created by a gaggle of corporate lobbyists and neo-cons working for the Heritage Foundation. In 2004, the plan’s authenticity was confirmed by Washington power player Grover Norquist. (It’s hard to erase the ill memory of Grover excitedly waving around his soft little hands as he boasted about turning Iraq into a free-market Disneyland, recreating Chile in Mesopotamia, complete with the Pinochet-style dictatorship necessary to lock up the assets – while behind Norquist, Richard Nixon snarled at me from a gargantuan portrait.)

The neo-con idea was to break up and sell off Iraq’s oil fields, ramp up production, flood the world oil market – and thereby smash OPEC and with it, the political dominance of Saudi Arabia.

General Jay Garner also confirmed the plan to grab the oil. Indeed, Secretary of Defense Donald Rumsfeld fired Garner, when the General, who had lived in Iraq, complained the neo-con grab would set off a civil war. It did. Nevertheless, Rumsfeld replaced Garner with a new American viceroy, Paul Bremer, a partner in Henry Kissinger’s firm, to complete the corporate takeover of Iraq’s assets – “especially the oil”.

But that was not to be. While Bremer oversaw the wall-to-wall transfer of Iraqi industries to foreign corporations, he was stopped cold at the edge of the oil fields.

How? I knew there was only one man who could swat away the entire neo-con army: James Baker, former Secretary of State, Bush family consiglieri and most important, counsel to Exxon-Mobil Corporation and the House of Saud.

(One unwitting source was industry oil-trading maven Edward Morse of Lehman/Credit Suisse, who threatened to sue Harper’s Magazine for my quoting him. Morse denied I ever spoke with him. But when I played the tape from my hidden recorder, his memory cleared and he scampered away.)

There was no way in hell that Baker’s clients, from Exxon to Abdullah, were going to let a gaggle of neo-con freaks smash up Iraq’s oil industry, break OPEC production quotas, flood the market with six million bbd of Iraqi oil and thereby knock the price of oil back down to $13 a barrel where it was in 1998.


The author.

Big Oil could not allow Iraq’s oil fields to be privatised and taken from state control. That would make it impossible to keep Iraq within OPEC (an avowed goal of the neo-cons) as the state could no longer limit production in accordance with the cartel’s quota system. The US oil industry was using its full political mojo to prevent their being handed ownership of Iraq’s oil fields.

That’s right: The oil companies didn’t want to own the oil fields – and they sure as hell didn’t want the oil. Just the opposite. They wanted to make sure there would be a limit on the amount of oil that would come out of Iraq.

Saddam wasn’t trying to stop the flow of oil – he was trying to sell more. The price of oil had been boosted 300 percent by sanctions and an embargo cutting Iraq’s sales to two million barrels a day from four. With Saddam gone, the only way to keep the damn oil in the ground was to leave it locked up inside the busted state oil company which would remain under OPEC (i.e. Saudi) quotas.

The James Baker Institute quickly and secretly started in on drafting the 323-page plan for the State Department. With authority granted from the top (i.e. Dick Cheney), ex-Shell Oil USA CEO Phil Carroll was rushed to Baghdad in May 2003 to take charge of Iraq’s oil. He told Bremer, “There will be no privatisation of oil – END OF STATEMENT.” Carroll then passed off control of Iraq’s oil to Bob McKee of Halliburton, Cheney’s old oil-services company, who implemented the Baker “enhance OPEC” option anchored in state ownership.

Some oil could be released, mainly to China, through limited, but lucrative, “production sharing agreements”.

And that’s how George Bush won the war in Iraq. The invasion was not about “blood for oil”, but something far more sinister: blood for no oil. War to keep supply tight and send prices skyward.

Oil men, whether James Baker or George Bush or Dick Cheney, are not in the business of producing oil. They are in the business of producing profits.

And they’ve succeeded. Iraq, capable of producing six to 12 million barrels of oil a day, still exports well under its old OPEC quota of three million barrels.

The result: As we mark the tenth anniversary of the invasion this month, we also mark the fifth year of crude at $100 a barrel.

As George Bush could proudly say to James Baker: Mission Accomplished!

Follow Greg on Twitter: @Greg_Palast

Lords of Disorder: Billions For Wall Street, Sacrifice For Everyone Else

In Uncategorized on March 7, 2013 at 5:38 pm

Lloyd C. Blankfein.Oldspeak:”“This bank is anti-fragile, we actually benefit from downturns.”-Jamie Dimon of JPMorgan ChaseThe term “antifragile” was coined by maverick financier & analyst Nassim Taleb, whose book of the same name is subtitled “Things That Gain From Disorder.” That’s a good description of JPMorgan Chase and the nation’s other megabanks… These institutions are designed to prey off economic misery. They suppress genuine market forces in order to thrive, and they couldn’t do it without our ongoing help. The Treasury Department and the Federal Reserve are making it happen.” –Richard Eskow. One look no further than how Mr. Dimon and his sociopathic corporation  profits off the misery of the poverty stricken by administering food stamp benefits to see his demented thought in practice. “A catastrophe for you and I usually presents an opportunity for the Titans of capital. And the grievous economic crisis affecting so many American families is no exception — big business has found a number of ways to profit, directly, from Main Street’s economic pain. Like vultures descending on a rotting corpse, they’ve come up with a variety of innovative methods to pull the last scraps of meat off the bones of America’s middle-class” –Joshua Holland. It’s very clear if one chooses to look. The corprocratic controllers of our political class and economic systems, profit from disorder, downturns, and catastrophes. Money is being redirected  from the people and real economy via austerity programs to prop up and sustain these failed, morally and spiritually bankrupt enterprises.  Knowing this, how logical is it to conclude that obviously deleterious political and economic policies that have us hurtling toward economic and ecological catastrophe will be changed to benefit the people? Not very. The problem is systemic. The systems around which we organize our societies must be fundamentally changed. All the nibbling around the edges that passes for sound policy is largely illusory.If we hope to survive as civilization we can no longer allow merchants of death and disorder who dominate the Military-Financial-Political Industrial Complex to reign as Lords of Disorder.”

By Richard Eskow @ The Campaign For Americas Future:

The President’s “sequester” offer slashes non-defense spending by $830 billion over the next ten years. That happens to be the precise amount we’re implicitly giving Wall Street’s biggest banks over the same time period.

We’re collecting nothing from the big banks in return for our generosity.  Instead we’re demanding sacrifice from the elderly, the disabled, the poor, the young, the middle class – pretty much everybody, in fact, who isn’t “too big to fail.”

That’s injustice on a medieval scale, served up with a medieval caste-privilege flavor. The only difference is that nowadays injustices are presented with spreadsheets and PowerPoints, rather than with scrolls and trumpets and kingly proclamations.

And remember: The White House represents the liberal side of these negotiations.

The Grandees

The $83 billion ‘subsidy’ for America’s ten biggest banks first appeared in an editorial from Bloomberg News – which, as the creation of New York’s billionaire mayor Michael Bloomberg, is hardly a lefty outfit.  That editorial drew upon sound economic analyses to estimate the value of the US government’s implicit promise to bail these banks out.

Then it showed that, without that advantage, these banks would not be making a profit at all.

That means that all of those banks’ CEOs, men (they’re all men) who preen and strut before the cameras and lecture Washington on its profligacy, would not only have lost their jobs and fortunes in 2008 because of their incompetence – they would probably lose their jobs again today.

Tell that to Jamie Dimon of JPMorgan Chase, or Lloyd Blankfein of Goldman Sachs, both of whom have told us it’s imperative that we cut social programs for the elderly and disabled to “save our economy.” The elderly and disabled have paid for those programs – just as they paid to rescue Jamie Dimon and Lloyd Blankfein, and just as they implicitly continue to pay for that rescue today.

Dimon, Blankfein and their peers are like the grandees of imperial Spain and Portugal. They’ve been given great wealth and great power over others, not through native ability but by the largesse of the Throne.

Lords of Disorder

Just yesterday, in a rare burst of candor, Dimon said this to investors on a quarterly earnings call: “This bank is anti-fragile, we actually benefit from downturns.”

It’s true, of course. Other corporations – in fact, everybody else – has to survive or fail in real-world conditions. But Dimon and his peers are wrapped in a protective force field which was created by the people, of the people, and for … well, for Dimon and his peers.

The term “antifragile” was coined by maverick financier and analyst Nassim Taleb, whose book of the same name is subtitled “Things That Gain From Disorder.” That’s a good description of JPMorgan Chase and the nation’s other megabanks.

Arbitraging Failure

Dimon’s comment was another way of saying that his bank, and everything it represents, is The Shock Doctrine made manifest. The nation’s megabanks are arbitraging their own failures, and the economic crises that flow from those failures.

These institutions are designed to prey off economic misery. They suppress genuine market forces in order to thrive, and they couldn’t do it without our ongoing help. The Treasury Department and the Federal Reserve are making it happen.

We who have made these banks “antifragile” have crowned their leaders our Lords of Disorder.

Once Dimon told reporters that he explained to his seven-year-old daughter what a financial crisis is – “something that happens … every five to seven years,” which “we need to do a better job” managing.

Thanks to fat political contributions, Dimon manages them well. So do his peers. Misery is the business model. And by Dimon’s reckoning another shock’s coming any day now.

Money For Nothing

Bloomberg’s use of the word ‘subsidy’ in this instance can be slightly misleading. Public institutions don’t issue $83 billion in checks to Wall Street’s biggest banks every year. But they didn’t let them fail as they should have – through an orderly liquidation – after they created the crisis of 2008 through fraud and chicanery. Instead it allowed them to prosper from it, creating that $83 billion implicit guarantee.

As we detailed in 2011, the TARP program didn’t “make money,” either. Banks received a free and easy trillion-plus dollars from our public institution, on terms that amounted to a gift worth tens of billions, and possibly hundreds of billions.

That gift prevented them from failing. In private enterprise, this kind of rescue is only given in return for part ownership or other financial concessions. But our government asked for nothing of the kind.

Unpaid Debts

Breaking up the big banks would have protected the public from more harm at their hands. That didn’t happen.

Government institutions could have imposed a financial transaction tax, whose revenue could be used to repair the harm the banks caused while at the same time discouraging runaway gambling.  They still could.

They could have imposed fees on the largest banks to offset the $83 billion per year advantage we’ve given them. They still could.

But they haven’t. This one-sided giveaway is the equivalent of an $83 billion gift for Wall Street each and every year.

Cut and Paste

$83 billion per year: Our current budget debate is framed in ten-year cycles, which means that’s $830 billion in Sequester Speak.  You’d think our deficit-obsessed capital would be trying to collect that very reasonable amount from Wall Street. Instead the White House is proposing $130 billion in Social Security cuts, $400 in Medicare reductions, $200 billion in “non-health mandatory savings,” and $100 billion in non-defense discretionary cuts.

That adds up to exactly $830 billion.

No doubt there is genuine waste that could be cut. But $830 billion, or some portion of it, could be used to grow our economy and brings tens of millions of Americans out of the ongoing recession that is their daily reality, even as the Lords of Disorder continue to prosper. It could be used for educating our young people and helping them find work, for reducing the escalating number of people in poverty, for addressing our crumbling infrastructure, for giving people decent jobs.

It’s going to Wall Street instead.

Trillion-Dollar Tribute

The right word for that is tribute. As in, “a payment by one ruler or nation to another in acknowledgment of submission …” or “an excessive tax, rental, or tariff imposed by a government, sovereign, lord, or landlord … an exorbitant charge levied by a person or group having the power of coercion.” (Courtesy Merriam-Webster)

In this case the tribute is made possible, not by military occupation, but by the hijacking of our political process by the corrupting force of corporate contributions.

The fruits of that victory are rich: Bank profits are at near-record highs. Most of the country is still struggling to dig out from the wreckage they created but, as Demos’ Policy Shop puts it, “for the banks it’s 2006 all over again.”

On Bended Knee

“Millions for defense,” they said in John Adams’ day, “but not one cent for tribute.”

Today we’re paying for both. That doesn’t leave much for the elderly, the disabled, the impoverished, the children, or anybody else who doesn’t “benefit from disorder.” Nobody’s fighting for them in this budget battle.

That leaves the public with a clear choice: Demand solutions that are more just and democratic – or submit willingly to the Lords of Disorder.

The Universal Pre-K Diversion: Why Isn’t Closing 129 Chicago Public Schools National News?

In Uncategorized on March 2, 2013 at 7:36 pm

Oldspeak:“President Obama waxed poetic at his state of the union speech; tours the country crowing about providing universal pre-k education and increasing access to college education, and receives thunderous applause. One has to wonder why then, he has been silent about the decimation of public school systems nationwide? Even though most of the school closings and privatizations are occurring in socioeconomically disadvantaged minority-majority communities where he presumably did his much ballyhooed community organizing. Why no discussion of the increasing corporatization and militarization of public schools that has no measurable benefits for students?  Probably because he appointed as his education secretary Arne Duncan, a non-educator & former CEO of Chicago Public Schools who was instrumental in implementing the CPS’s “Renaisance 2010” school privatization scheme. Yes, Mr. Duncan oversaw the conversion of  over 100 public schools to charter schools during his tenure in Chicago. What about others in the political class, red and blue? Why the silence on this? Bruce A. Dixon has an interesting take.

Related Stories:

Educators Push Back Against Obama’s “Business Model” for School Reforms

“Who’s Killing Philly Public Schools?”: Daniel Denvir on Plan for School Closings, Privatization

A Look at Arne Duncan’s VIP List of Requests at Chicago Schools and the Effects of his Expansion of Charter Schools in Chicago

Zombie Politics, Democracy, And The Threat of Authoritarianism

By Bruce A. Dixon @ Black Agenda Report:

It’s an obvious question, with an easy answer. Our nation’s bipartisan political elite have decided to privatize public education. They know the only way they can execute this deeply unpopular policy is to do it on the down-low, with a minimum of coverage, and no mention of the p-word, especially of growing civic resistance to it.

If you don’t live in Chicago you might not know that the CEO and the dozens of other six figure a year mayoral cronies who run the Chicago Public Schools want to close 129 public schools this year, more than a third of the city’s total. It’s not national news for the same reason that closing 40 public schools in Philadelphia last year wasn’t national news, and massive school closings in the poorer neighborhoods of cities across the country is not news either.

It’s not news because school closings and school privatization, the end game of the bipartisan policies the Obama administration, Wall Street, the US Chamber of Commerce, a host of right wing foundations and deep pockets and hordes of politicians in both parties from the president down are pushing down the throats of communities across the country, are deeply unpopular. The American people, and especially the parents, teachers, grandparents, and other residents of poorer neighborhoods where closings and privatization are happening emphatically don’t want these things.

Even the word describing their policy, “privatization” is so vastly unpopular that they’ve taken it out of circulation altogether. The best way, our leaders imagine, to contain and curtail resistance to their deeply unpopular policies is to avoid naming them for what they are, to keep them on the down low, to not report on their implementation, and certainly to not cover any civic resistance to them.

Local elites in each city and school district concoct real or imaginary “crises” to which the solution is always firing more experienced teachers, hiring more temps in their place, instituting more high-stakes testing, closing more public schools and substituting more unaccountable (and often profitable) charter schools, frequently in the same buildings that once housed public schools. In Chicago the “crisis” is precipitated every year when the CPS (that’s Chicago Public Schools – Chicago’s never had an elected school board, they’re all mayoral appointees) honchos announce the schools are in a billion dollar hole. The Chicago Teachers Union of course, took a look over the same books and revealed that despite the host of top $100,000 a year officials whose jobs never seem to be cut, the system was nine figures in the black, not ten in the red. Naturally, local and national media didn’t report that either.

Chicago’s teachers have done what those in New York, Houston, Dallas, L.A. and others have not, and spent their union dues funding outreach and collaboration with parents across the city, so neighborhood hearings on the school closings are packed to overflowing with outraged parents, indignant local business people, angry teachers and concerned students. If CNN, MSNBC, or Fox News gave the school closings and privatization story a fraction of the coverage they gave deceptive and dishonest pro-privatization movies like Waiting For Superman and Won’t Back Down, the outrage against the move to privatize education would be unstoppable. The most coverage the wave of school closings have received lately was a misleading segment on Melissa Harris-Perry’s weekly TV show on whether school closings were “racist” or not, with no examination of the how or why they happen or the growing resistance to them.

Oceans of ink and hot air have been expended claiming that “social media” would somehow take up the slack created by the disappearance of local news gathering organizations, and how these things can somehow fuel and sustain a wave of public outrage that can topple unjust authority and make the will of the people felt. But when it comes to the war of our elite waged to privatize public education, we haven’t seen it yet.

For Black Agenda Radio, I’m Bruce Dixon. Find us on the web at www.blackagendareport.com.

Bruce A. Dixon is managing editor at Black Agenda Report. A longtime Chicagoan, he now lives in exile near Marietta GA, where he is a state committee member of the Georgia Green party and a partner in a tech firm. Contact him via this site’s contact page, or at bruce.dixon(at)blackagendareport.com.

Labor Day & The Election Of 2012: It’s The Inequality, Stupid.

In Uncategorized on September 3, 2012 at 6:53 pm

https://i0.wp.com/truth-out.org/images/090312in_.jpgOldspeak:” Seems pretty self-explanatory: “As wealth and income rise to the top, moreover, so does political power. The rich are able to entrench themselves by lowering their taxes, gaining special tax breaks (such as the “carried interest” loophole allowing private equity and hedge fund managers to treat their incomes as capital gains), and ensuring a steady flow of corporate welfare to their businesses (special breaks for oil and gas, big agriculture, big insurance, Big Pharma, and, of course, Wall Street). All of this squeezes public budgets, corrupts government, and undermines our democracy. The issue isn’t the size of our government; it’s who our government is for. It has become less responsive to the needs of most citizens and more to the demands of a comparative few.“-Robert Reich

By Robert Reich @ Robert Reichs Blog:

The most troubling economic trend facing America this Labor Day weekend is the increasing concentration of income, wealth, and political power at the very top – among a handful of extraordinarily wealthy people – and the steady decline of the great American middle class.

Inequality in America is at record levels. The 400 richest Americans now have more wealth than the bottom 150 million of us put together.

Republicans claim the rich are job creators. Nothing could be further from the truth. In order to create jobs, businesses need customers. But the rich spend only a small fraction of what they earn. They park most of it wherever around the world they can get the highest return.

The real job creators are the vast middle class, whose spending drives the economy and creates jobs.

But as the middle class’s share of total income continues to drop, it cannot spend as much as before. Nor can most Americans borrow as they did before the crash of 2008 — borrowing that temporarily masked their declining purchasing power.

As a result, businesses are reluctant to hire. This is the main reason why the recovery has been so anemic.

As wealth and income rise to the top, moreover, so does political power. The rich are able to entrench themselves by lowering their taxes, gaining special tax breaks (such as the “carried interest” loophole allowing private equity and hedge fund managers to treat their incomes as capital gains), and ensuring a steady flow of corporate welfare to their businesses (special breaks for oil and gas, big agriculture, big insurance, Big Pharma, and, of course, Wall Street).

All of this squeezes public budgets, corrupts government, and undermines our democracy. The issue isn’t the size of our government; it’s who our government is for. It has become less responsive to the needs of most citizens and more to the demands of a comparative few.

The Republican response – as we saw dramatically articulated this past week in Tampa – is to further reduce taxes on the rich, defund programs for the poor, fight unions, allow the median wage to continue to fall, and oppose any limits on campaign contributions or spending.

It does not take a great deal of brainpower to understand this strategy will lead to an even more lopsided economy, more entrenched wealth, and more corrupt democracy.

The question of the moment is whether next week President Obama will make a bold and powerful rejoinder. If he and the Democratic Party stand for anything, it must be to reverse this disastrous trend.

Plutonomy & The Precariat: On The History Of The U.S. Economy In Decline

In Uncategorized on May 11, 2012 at 5:22 pm

Oldspeak:”We’re really regressing back to the dark ages. It’s not a joke.  And if that’s happening in the most powerful, richest country in history, then this catastrophe isn’t going to be averted — and in a generation or two, everything else we’re talking about won’t matter. Something has to be done about it very soon in a dedicated, sustained way.” –Dr. Noam Chomsky
Empires in decline follow the same general pattern. High debt, unsound economic policies, intransigent political corruption, perpetual war and increases in war funding to the detriment of all else , privatized military, environmental degradation, looting of resources from throughout the empire rather than producing  things, systems deplete their resource base beyond levels that are ultimately sustainable. All these conditions exist in the American Empire. Something has to be done about fundamentally changing these conditions before it’s too late.

By Tom Engelhardt & Noam Chomsky @ TomsDispatch:

By Tom Engelhardt:

If you had followed May Day protests in New York City in the mainstream media, you might hardly have noticed that they happened at all.  The stories were generally tucked away, minimalist, focused on a few arrests, and spoke of “hundreds” of protesters in the streets, or maybe, if a reporter was feeling especially generous, a vague “thousands.”  I did my own rough count on the largest of the Occupy protests that day. It left Union Square in the evening heading for the Wall Street area.  I walked through the march front to back, figuring a couple of thousand loosely packed protesters to a block, and came up with a conservative estimate of 15,000 people.  Maybe it wasn’t the biggest protest of all time, but sizeable enough given that Occupy, an organization without strong structures but once strongly located, had been (quite literally) pushed or even beaten out of its camps in Zuccotti Park and elsewhere across the country and toward oblivion.

It’s true that if you were checking out the Nation or Mother Jones, you would have gotten a more accurate sense of what was going on.  Still, didn’t the great protest movement of our American moment (on a planet still in upheaval) deserve better that day? And no matter what you read in the mainstream, here’s what you would have known nothing about: this country is increasingly an armed camp and those marchers, remarkably relaxed and peaceable, were heading out into a concentration of police that was staggering and should have been startling.

Cops on motor scooters patroled the edges of the march, which was hemmed in by the usual moveable metal barricades.  Police helicopters buzzed us at rooftop level.  The police managed to alter the actual path of the marchers partway along and the police turnout — I estimated up to 75 cops, three deep on some street corners doing nothing but collecting overtime — was little short of incomprehensible.

Though Occupy marchers used to chant, “Whose streets, our streets!” it was never so.  The streets belong to the police.  If this is the democracy and freedom to dissent that American officials constantly proclaim to the world as one of our core values, then pinch me.  If most of it is even legal, I’d be surprised.  But when it comes to legality, we’re past all that.  So any march on a sunny day is instantly imprisoned, and the protesters turned into a captive audience.  When young people break out of the barricades and the serried ranks of cops and head in unexpected directions, it has the unmistakable feel of a jailbreak.

The fact is that, in a country whose security forces are up-armored to the teeth from the Mexican border to Union Square, just behind any set of marchers, you can feel the unease of those in power, edging up to fear.  And no wonder.  We remain in a “recovery” that’s spinning on a dime.  Let the Eurozone falter and begin to fall, the Chinese housing bubble pop, or the Persian Gulf go up in flames, and hold onto your signs.  Like Bloomberg in the Big Apple, many mayors sent in their paramilitaries (with a helping hand from the Department of Homeland Security) to get rid of the “troublemakers.”  Only problem: their real problems run so much deeper and when the next “moment” comes, Occupy could look like a march in the park (which, in many inspirational ways, it largely was).  In the meantime, the streets increasingly belong to the weaponized.  Americans who protest blur into the “terrorists” who, since 9/11, have been the obsession of what passes for law enforcement.

If you want some sense of just what’s lurking under the surface of all the police drones and helicopters and tanks and even mini-drone submarines, what underpins our fragile, edgy moment, then check out this talk TomDispatch regular Noam Chomsky gave.  It’s excerpted from his new book Occupy, with special thanks to its publisher Zuccotti Park Press. Tom

By Noam Chomsky:

The Occupy movement has been an extremely exciting development. Unprecedented, in fact. There’s never been anything like it that I can think of.  If the bonds and associations it has established can be sustained through a long, dark period ahead — because victory won’t come quickly — it could prove a significant moment in American history.

The fact that the Occupy movement is unprecedented is quite appropriate. After all, it’s an unprecedented era and has been so since the 1970s, which marked a major turning point in American history. For centuries, since the country began, it had been a developing society, and not always in very pretty ways. That’s another story, but the general progress was toward wealth, industrialization, development, and hope. There was a pretty constant expectation that it was going to go on like this. That was true even in very dark times.

I’m just old enough to remember the Great Depression. After the first few years, by the mid-1930s — although the situation was objectively much harsher than it is today — nevertheless, the spirit was quite different. There was a sense that “we’re gonna get out of it,” even among unemployed people, including a lot of my relatives, a sense that “it will get better.”

There was militant labor union organizing going on, especially from the CIO (Congress of Industrial Organizations). It was getting to the point of sit-down strikes, which are frightening to the business world — you could see it in the business press at the time — because a sit-down strike is just a step before taking over the factory and running it yourself. The idea of worker takeovers is something which is, incidentally, very much on the agenda today, and we should keep it in mind. Also New Deal legislation was beginning to come in as a result of popular pressure. Despite the hard times, there was a sense that, somehow, “we’re gonna get out of it.”

It’s quite different now. For many people in the United States, there’s a pervasive sense of hopelessness, sometimes despair. I think it’s quite new in American history. And it has an objective basis.

On the Working Class

In the 1930s, unemployed working people could anticipate that their jobs would come back. If you’re a worker in manufacturing today — the current level of unemployment there is approximately like the Depression — and current tendencies persist, those jobs aren’t going to come back.

The change took place in the 1970s. There are a lot of reasons for it. One of the underlying factors, discussed mainly by economic historian Robert Brenner, was the falling rate of profit in manufacturing. There were other factors. It led to major changes in the economy — a reversal of several hundred years of progress towards industrialization and development that turned into a process of de-industrialization and de-development. Of course, manufacturing production continued overseas very profitably, but it’s no good for the work force.

Along with that came a significant shift of the economy from productive enterprise — producing things people need or could use — to financial manipulation. The financialization of the economy really took off at that time.

On Banks

Before the 1970s, banks were banks. They did what banks were supposed to do in a state capitalist economy: they took unused funds from your bank account, for example, and transferred them to some potentially useful purpose like helping a family buy a home or send a kid to college. That changed dramatically in the 1970s. Until then, there had been no financial crises since the Great Depression. The 1950s and 1960s had been a period of enormous growth, the highest in American history, maybe in economic history.

And it was egalitarian.  The lowest quintile did about as well as the highest quintile. Lots of people moved into reasonable lifestyles — what’s called the “middle class” here, the “working class” in other countries — but it was real.  And the 1960s accelerated it. The activism of those years, after a pretty dismal decade, really civilized the country in lots of ways that are permanent.

When the 1970s came along, there were sudden and sharp changes: de-industrialization, the off-shoring of production, and the shift to financial institutions, which grew enormously. I should say that, in the 1950s and 1960s, there was also the development of what several decades later became the high-tech economy: computers, the Internet, the IT Revolution developed substantially in the state sector.

The developments that took place during the 1970s set off a vicious cycle. It led to the concentration of wealth increasingly in the hands of the financial sector. This doesn’t benefit the economy — it probably harms it and society — but it did lead to a tremendous concentration of wealth.

On Politics and Money

Concentration of wealth yields concentration of political power. And concentration of political power gives rise to legislation that increases and accelerates the cycle. The legislation, essentially bipartisan, drives new fiscal policies and tax changes, as well as the rules of corporate governance and deregulation. Alongside this began a sharp rise in the costs of elections, which drove the political parties even deeper into the pockets of the corporate sector.

The parties dissolved in many ways. It used to be that if a person in Congress hoped for a position such as a committee chair, he or she got it mainly through seniority and service. Within a couple of years, they started having to put money into the party coffers in order to get ahead, a topic studied mainly by Tom Ferguson. That just drove the whole system even deeper into the pockets of the corporate sector (increasingly the financial sector).

This cycle resulted in a tremendous concentration of wealth, mainly in the top tenth of one percent of the population. Meanwhile, it opened a period of stagnation or even decline for the majority of the population. People got by, but by artificial means such as longer working hours, high rates of borrowing and debt, and reliance on asset inflation like the recent housing bubble. Pretty soon those working hours were much higher in the United States than in other industrial countries like Japan and various places in Europe. So there was a period of stagnation and decline for the majority alongside a period of sharp concentration of wealth. The political system began to dissolve.

There has always been a gap between public policy and public will, but it just grew astronomically. You can see it right now, in fact.  Take a look at the big topic in Washington that everyone concentrates on: the deficit. For the public, correctly, the deficit is not regarded as much of an issue. And it isn’t really much of an issue. The issue is joblessness. There’s a deficit commission but no joblessness commission. As far as the deficit is concerned, the public has opinions. Take a look at the polls. The public overwhelmingly supports higher taxes on the wealthy, which have declined sharply in this period of stagnation and decline, and the preservation of limited social benefits.

The outcome of the deficit commission is probably going to be the opposite. The Occupy movements could provide a mass base for trying to avert what amounts to a dagger pointed at the heart of the country.

Plutonomy and the Precariat

For the general population, the 99% in the imagery of the Occupy movement, it’s been pretty harsh — and it could get worse. This could be a period of irreversible decline. For the 1% and even less — the .1% — it’s just fine. They are richer than ever, more powerful than ever, controlling the political system, disregarding the public. And if it can continue, as far as they’re concerned, sure, why not?

Take, for example, Citigroup. For decades, Citigroup has been one of the most corrupt of the major investment banking corporations, repeatedly bailed out by the taxpayer, starting in the early Reagan years and now once again. I won’t run through the corruption, but it’s pretty astonishing.

In 2005, Citigroup came out with a brochure for investors called “Plutonomy: Buying Luxury, Explaining Global Imbalances.” It urged investors to put money into a “plutonomy index.” The brochure says, “The World is dividing into two blocs — the Plutonomy and the rest.”

Plutonomy refers to the rich, those who buy luxury goods and so on, and that’s where the action is. They claimed that their plutonomy index was way outperforming the stock market. As for the rest, we set them adrift. We don’t really care about them. We don’t really need them. They have to be around to provide a powerful state, which will protect us and bail us out when we get into trouble, but other than that they essentially have no function. These days they’re sometimes called the “precariat” — people who live a precarious existence at the periphery of society. Only it’s not the periphery anymore. It’s becoming a very substantial part of society in the United States and indeed elsewhere. And this is considered a good thing.

So, for example, Fed Chairman Alan Greenspan, at the time when he was still “Saint Alan” — hailed by the economics profession as one of the greatest economists of all time (this was before the crash for which he was substantially responsible) — was testifying to Congress in the Clinton years, and he explained the wonders of the great economy that he was supervising. He said a lot of its success was based substantially on what he called “growing worker insecurity.” If working people are insecure, if they’re part of the precariat, living precarious existences, they’re not going to make demands, they’re not going to try to get better wages, they won’t get improved benefits. We can kick ’em out, if we don’t need ’em. And that’s what’s called a “healthy” economy, technically speaking. And he was highly praised for this, greatly admired.

So the world is now indeed splitting into a plutonomy and a precariat — in the imagery of the Occupy movement, the 1% and the 99%. Not literal numbers, but the right picture. Now, the plutonomy is where the action is and it could continue like this.

If it does, the historic reversal that began in the 1970s could become irreversible. That’s where we’re heading. And the Occupy movement is the first real, major, popular reaction that could avert this. But it’s going to be necessary to face the fact that it’s a long, hard struggle. You don’t win victories tomorrow. You have to form the structures that will be sustained, that will go on through hard times and can win major victories. And there are a lot of things that can be done.

Toward Worker Takeover

I mentioned before that, in the 1930s, one of the most effective actions was the sit-down strike. And the reason is simple: that’s just a step before the takeover of an industry.

Through the 1970s, as the decline was setting in, there were some important events that took place.  In 1977, U.S. Steel decided to close one of its major facilities in Youngstown, Ohio. Instead of just walking away, the workforce and the community decided to get together and buy it from the company, hand it over to the work force, and turn it into a worker-run, worker-managed facility. They didn’t win. But with enough popular support, they could have won.  It’s a topic that Gar Alperovitz and Staughton Lynd, the lawyer for the workers and community, have discussed in detail.

It was a partial victory because, even though they lost, it set off other efforts. And now, throughout Ohio, and in other places, there’s a scattering of hundreds, maybe thousands, of sometimes not-so-small worker/community-owned industries that could become worker-managed. And that’s the basis for a real revolution. That’s how it takes place.

In one of the suburbs of Boston, about a year ago, something similar happened. A multinational decided to close down a profitable, functioning facility carrying out some high-tech manufacturing. Evidently, it just wasn’t profitable enough for them. The workforce and the union offered to buy it, take it over, and run it themselves. The multinational decided to close it down instead, probably for reasons of class-consciousness. I don’t think they want things like this to happen. If there had been enough popular support, if there had been something like the Occupy movement that could have gotten involved, they might have succeeded.

And there are other things going on like that. In fact, some of them are major. Not long ago, President Barack Obama took over the auto industry, which was basically owned by the public. And there were a number of things that could have been done. One was what was done: reconstitute it so that it could be handed back to the ownership, or very similar ownership, and continue on its traditional path.

The other possibility was to hand it over to the workforce — which owned it anyway — turn it into a worker-owned, worker-managed major industrial system that’s a big part of the economy, and have it produce things that people need. And there’s a lot that we need.

We all know or should know that the United States is extremely backward globally in high-speed transportation, and it’s very serious. It not only affects people’s lives, but the economy.  In that regard, here’s a personal story. I happened to be giving talks in France a couple of months ago and had to take a train from Avignon in southern France to Charles De Gaulle Airport in Paris, the same distance as from Washington, DC, to Boston. It took two hours.  I don’t know if you’ve ever taken the train from Washington to Boston, but it’s operating at about the same speed it was 60 years ago when my wife and I first took it. It’s a scandal.

It could be done here as it’s been done in Europe. They had the capacity to do it, the skilled work force. It would have taken a little popular support, but it could have made a major change in the economy.

Just to make it more surreal, while this option was being avoided, the Obama administration was sending its transportation secretary to Spain to get contracts for developing high-speed rail for the United States, which could have been done right in the rust belt, which is being closed down. There are no economic reasons why this can’t happen. These are class reasons, and reflect the lack of popular political mobilization. Things like this continue.

Climate Change and Nuclear Weapons

I’ve kept to domestic issues, but there are two dangerous developments in the international arena, which are a kind of shadow that hangs over everything we’ve discussed. There are, for the first time in human history, real threats to the decent survival of the species.

One has been hanging around since 1945. It’s kind of a miracle that we’ve escaped it. That’s the threat of nuclear war and nuclear weapons. Though it isn’t being much discussed, that threat is, in fact, being escalated by the policies of this administration and its allies. And something has to be done about that or we’re in real trouble.

The other, of course, is environmental catastrophe. Practically every country in the world is taking at least halting steps towards trying to do something about it. The United States is also taking steps, mainly to accelerate the threat.  It is the only major country that is not only not doing something constructive to protect the environment, it’s not even climbing on the train. In some ways, it’s pulling it backwards.

And this is connected to a huge propaganda system, proudly and openly declared by the business world, to try to convince people that climate change is just a liberal hoax. “Why pay attention to these scientists?”

We’re really regressing back to the dark ages. It’s not a joke.  And if that’s happening in the most powerful, richest country in history, then this catastrophe isn’t going to be averted — and in a generation or two, everything else we’re talking about won’t matter. Something has to be done about it very soon in a dedicated, sustained way.

It’s not going to be easy to proceed. There are going to be barriers, difficulties, hardships, failures.  It’s inevitable. But unless the spirit of the last year, here and elsewhere in the country and around the globe, continues to grow and becomes a major force in the social and political world, the chances for a decent future are not very high.

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, most recently, Hopes and Prospects, Making the Future, and Occupy, published by Zuccotti Park Press, from which this speech, given last October, is excerpted and adapted. His web site is www.chomsky.info.

The Spectacle Of Terrorism And Its Vested Interests

In Uncategorized on May 10, 2012 at 2:50 pm

Oldspeak:”The “War On Terror” has been monetized. “It is important to note that we can no longer assume that the FBI and the CIA and the NSA work, first of all, for the safety of the American people; they also now represent a revolving door of government officials who become security industry lobbyists and manufacturers, which, in turn, get the multimillion-dollar contracts for tackling the very problems these stories appear to highlight.” –Naomi Wolf. In an inverted totalitarian kleptocracy, EVERYTHING is for sale, including terrorism, fear, safety, and security. Those words are used to sell us more shit we don’t need than we care to realize. They’re used to deprive us of our rights and liberties. They’re used to keep us in a perpetual state of shock & learned helplessness. And various vested interests are making trillions off of these words. All while, we’re less safe, less secure, and more fearful and creating more terrorists with ever death-dealing drone strike.” “War is Peace”, “Freedom is Slavery”, “Ignorance is Strength”.

By Naomi Wolf @ The U.K. Guardian:

The news stories, which quickly surface, long enough to cause scary headlines, then vanish before people can learn how often the cases are thrown out. These are stories about “bumbling fantasists”, hapless druggies, the aimless, even the virtually homeless and mentally ill, and other marginal characters with not the strongest grip on reality, who have been lured into discourses about violence against America only after assiduous courting, and in some cases outright payment, by undercover FBI or police informants.

They have become a litany in recent years. The terrifying 2003-2004 national news stories that a Detroit “sleeper cell” had sent Muslim terrorists to blow up Disneyland and other landmarks, including in Las Vegas, was later thrown out of court, with accusations of prosecutorial misconduct, to almost no press attention – the same cycle of hype and failed convictions that have characterized many such stories. The evidence had included a home video taken in Disneyland, “doodles”, and a guy with a credit card fraud problem, who had been pressured to diminish his own sentence by accusing his buddies.

But the tales of entrapment and terror hype continue apace – ten years after 9/11. Judith Miller, in Newsmax, writes that one recent case was so lame that even the FBI distanced itself from NYPD: “Despite FBI Doubts, NYPD Convinced Pipe Bomb Case Posed Real Danger”, noted the headline on her 28 November 2011 article. A 27-year-old Dominican immigrant, Jose Pimentel, aka Muhamad Yusuf, had been monitored by NYPD for two years. Last fall, Manhattan District Attorney Cyrus Vance Jr charged Pimentel with constructing pipe bombs to attack “police cars, post offices, veterans of Iraq and Afghanistan, and other targets”.

An email in the case, which purports to show that Pimentel was writing about violent jihad to the al-Qaida-supporting “glossy magazine” Inspire, was described to Judith Miller by anonymous “law enforcement officials”. Given Miller’s journalistic history, this sentence alone should raise eyebrows. But the alleged email is, she writes, “part of a vast investigative file containing over 400 hours of surveillance audio and video tapes, interviews, and other material amassed by the NYPD”. New York Police Commissioner Ray Kelly, in a flashy press conference, called the young man a “lone wolf” terrorist – a recent DHS soundbite. But the case was so shaky that the Federal Bureau of Investigation, as well as federal prosecutors, did not want to join the case: “Too many holes in the case”, other anonymous officials told Miller.

Pimentel was one of what has become an army of FBI- or NYPD-entrapped losers. He had no money, no job, and at key points lived with his mom. The New York Times noted that he may have been psychologically “unstable”, and that he had made threats after smoking pot. Officials say that in May 2010, he repeated loudly in Arabic that “America is my enemy.” This scary guy was a circuit city clerk in Schenectady, New York.

Additional evidence that Miller’s anonymous sources give for his being a terrorist? In 2010, he had $100. One witness told police “that he had flashed a $100 bill when he made some purchases.”Another? “Pimentel scraped the heads of some 750 matches, officials say.” The scenario that entrapped Pimentel involved a surround-sound of informants trying to entrap him in cyberspace and to lure him to incriminate himself in taped phone conversations. But the FBI dropped its involvement after they judged that the informant had been too active in helping: urging or arranging for Pimentel to start drilling into pipe pieces – the evidence that he intended to set off a bomb.

Many other, much-ballyhooed cases of “homegrown terrorism” show this creaky, effortful, farcical quality of people who, left to their own devices by the FBI or NYPD, would have remained harmlessly playing video games in their childhood bedrooms, smoking their doobies, or babbling gently to themselves, on their anti-psychotic meds, about geopolitical forces.

The “Newburgh Four” is another such case, as Russia Today reported: four African-American Muslims were found guilty recently of a plot to place bombs in two Bronx synagogues and to shoot down military aircraft in Newburgh. Another flashy press conference in May 2009 showcased these four men as “the faces of homegrown terrorism”. The FBI had claimed that the men had planned to commit their acts of terrorism on the day that they were arrested. Joseph Demarest from the FBI called it “a terrifying plot”.

The men were low-income former convicts who could not read or write with literacy. They could not drive and had no passports. Shahid Hussain, a Pakistani immigrant who was an FBI employee, got them to say they were going to commit these crimes – paying them $100,000. Hussain presented the men with a fake stinger missile, and Hussain offered these poverty-stricken men cars and money in exchange for their promise to carry out the manufactured plot.

The men’s relatives accused the FBI of entrapment. “I do not think this is entrapment. I know it is. This is entrapment,” said Alicia McWilliams-McCollum, aunt of 29-year-old David Williams. As with many of these scenarios, one can easily imagine poor people with criminal records, offered large sums of money by a fake jihadist, trying to get the money and then trick the instigator. Also, as any AA or Al-Anon counsellor can tell you, if drugs or alcohol are in the mix, entrapment is a ridiculous premise, too: an addict will say anything, and make any ludicrous promise, to get a giant check. It doesn’t mean the addict has any intention of delivering on the supposed contract. David Williams’ aunt says that her nephew is in prison because of a pretend terror attack created by the FBI:

“They are creating scenarios; they are manufacturing crimes. That would not have occurred if you had not planted an unconstructive seed into a community.”

Attorney Steve Dowds, who tracks cases like the Newburgh Four, argues the US government is systematically employing preemptive prosecution:

“They are taking some down and out vulnerable individuals and not only planting the ideology of jihad on them, giving them all the things they need, all of the material. They are setting up the plan, giving them all the research and then grabbing them and claiming these were homegrown terrorists. It is just a fiction.”

Now we have another “underwear bomber” – declared by the Pentagon to have been about to launch a major attack via a US-bound plane, but who appears, reportedly, to have been a CIA-run double agent. What is the evidence that the “device”, which is supposedly so sophisticated that there is doubt as to whether existing surveillance technologies in US airports would have caught it, actually exists? As with so many of these stories, we have no independent verification – because reporters from the British Daily Telegraph, to Reuters, to the Huffington Post are simply taking dictation from New York Representative Peter King and from the Pentagon, and scarcely asking for backup evidence of their elaborate assertions.

It is important to note that we can no longer assume that the FBI and the CIA and the NSA work, first of all, for the safety of the American people; they also now represent a revolving door of government officials who become security industry lobbyists and manufacturers, which, in turn, get the multimillion-dollar contracts for tackling the very problems these stories appear to highlight. The stories about the first “underwear bomber” preceded the rollout of former DHS chief Michael Chertoff’s costly scanners; the press interviews for this round of mystery “underwear bomber” stories are practically a press release for some expensive technological upgrade – or yet more hellishly invasive and demeaning search technique. The sad truth is that we can no longer report and consume such stories as if there were no commercial vested interests involved in creating and sustaining such “terror theater”.

You know we have “terror theater” in the US because nations such as Israel, which are genuinely focussed on deterring terrorism, downplay risk and threats rather than trumpeting them, as DHS does. If the threat is real, they don’t reveal all the details of the latest “planned attack” to the news media – because they are busy investigating real planned attacks, rather than doing corporate PR and product placement. Instead of TSA groping, aviation security, from Britain to Israel, to Spain to Norway, uses much less invasive and more acute security processes, such as face-to-face, in-line interviewing. They do not sell commercial products that subvert recall surety issues, such as the various costly and vastly lucrative new “Global Entry Trusted Traveller Network”, an apparent government program that is not transparent or accountable. You can sign up for for a fee of $100 a year, after an interview. No TSA representative I interviewed knows who owns the initiative, which they said was private, not a government program; nor could they tell me where the money really goes.

Actual terrorism-fighting nations would never devolve such security concerns to private contractors or sell easier travel access for cash – because it is both dangerous and absurd to do so. In fact, what the FBI and CIA and the Pentagon are up against is that people – including Americans – are waking up to the fact that there would be no enemy if we weren’t manufacturing new terrorists by taking out civilians in Pakistan, Yemen and Afghanistan. An end to foreign wars (which are already costing us thousands of casualties a year) would be a much more effective counter-terror strategy than this hyped, synthetic threat to justify a corporate surveillance-and-security product gold rush. Instead, we are treated to a spectacle orchestrated by alarmist officials who keep holding frightening press conferences promoting the threat of dazed, poor, drugged-out “lone wolves”. The true, Orwellian agenda is to support a vast new crony-capitalist industry that uses terror theater to turn open democracies into surveillance societies.

Top Economists Agree: The U.S. Is In A Depression

In Uncategorized on May 8, 2012 at 2:07 pm

Oldspeak:”You know it’s grim when the prevailing debate among economists and historians is whether the world economy faces the “Great” depression of the 1930s or the “Long” depression of the 1870s.” I like to call it a “Stealth Great Depression” The bread lines have been replaced with EBT cards, and the banks are too bigger to fail, but many of the other conditions that existed in the 1930’s and 1870’s exist today. Tent cities, high unemployment, high poverty, high homelessness, wage stagnation, high debt, mass bankruptcy etc, etc, etc… A profound difference between today’s depression and those of the past is the propaganda. It’s so exquisitely and insidiously crafted that people actually believe it over what it happening all around them in the real world. Meanwhile “Institutions (banks) that know how and why to prevent things from falling apart and which nonetheless sit back and do nothing. A global collapse is being engineered. We need a radically new way forward to avert catastrophe but all we’re being offered by our political classes is tried and false ways of the past that are clearly leading to catastrophe. A ‘sustainable future’ is being monetized. More and more people awakening to the reality that those old ways are no longer acceptable. Our civilization needs a new operating system. Or a crash is not a matter of if, but when. Greed will be our downfall.

By Washington’s Blog:

Paul Krugman released a new book yesterday called “End This Depression Now“. In the introduction, Krugman writes:

The best way to think about this continued slump, I’d argue, is to accept that we’re in a depression …. It’s nonetheless essentially the same kind of situation that John Maynard Keynes described in the 1930s: “a chronic condition of subnormal activity for a considerable period without any marked tendency either towards recovery or towards complete collapse.”

Robert Shiller said yesterday that the world is in a state of “late Great Depression”.

Many other top economists also say that were in a Depression.

We are stuck in a depression because the government has done all of the wrong things, and has failed to address the core problems.

For example:

  • The government is doing everything else wrong. See this and this

This isn’t an issue of left versus right … it’s corruption and bad policies which help the top .1% but are causing a depression for the vast majority of the American people.