Yearly Archives: 2018

Trump’s new cyber strategy seeks global dominion over internet

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Source: RT.com

Setting the global standard for online behavior, preserving American dominance, political and economic interests, punishing ‘malicious actors’ like Russia and China: these are the ambitious goals of the new US cyber-strategy.

The White House published the 40-page document on Thursday afternoon, the first comprehensive cyber strategy in 15 years. The strategy’s core assumption is that the US created the internet and that Washington must maintain the dominant role in defining, shaping and policing cyberspace in much the same way as it does the globe.

All strategies are but broad outlines of general measures and overall objectives, and this one is no different. Beyond merely defending US computer networks – that’s just the first part, devoted to protecting the “American People, the Homeland, and the American Way of Life” – it wants to promote US economic prosperity while advancing influence around the world and achieving “peace through strength” as well.

The Trump administration’s approach to cyberspace is “anchored by enduring American values, such as the belief in the power of individual liberty, free expression, free markets, and privacy,” the strategy says right at the start.

It also takes as an article of faith that Russia, China, Iran, and North Korea use “cyber tools to undermine our economy and democracy, steal our intellectual property, and sow discord in our democratic processes.”

Having signed on to this central assertion of Russiagate-peddlers, the Trump administration lays out the ways in which it intends to achieve its pie-in-the-(cyber)sky objectives.

‘Securing US democracy’

The Department of Homeland Security, a vast bureaucracy established after 9/11, is supposed to centralize management and oversight of federal computer networks, with the notable exceptions of those belonging to the Pentagon and the intelligence community. Reforms are supposed to make government networks more secure, reliable and efficient, while federal contracting will drive improvements in both products and services. This is the same process that has produced the F-35, a trillion-dollar clunker.

Those obsessed with seeing Russian hackers behind every voting machine might be interested in page nine, where the strategy proposes to “secure our democracy” by… offering training and risk management to state and local governments “when requested.” Admittedly, there isn’t much more the federal government can do to protect election systems, aside from securing the network infrastructure.

A particularly interesting tidbit here is also that law enforcement will “work with private industry to confront challenges presented by technological barriers, such as anonymization and encryption technologies” to obtain “time-sensitive evidence.” This is basically a rehash of former FBI Director James Comey’s perpetual refrain about the need for backdoor access to encrypted products and services.

The most (in)famous example of this was when the FBI took Apple to court over accessing the San Bernardino terrorist suspect’s iPhone, then hiring an Israeli company to crack the device, only to find… nothing of interest.

Privacy and civil rights advocates will be overjoyed to hear that Trump also wants to “update electronic surveillance and computer crime statutes” to make sure law enforcement can gather more evidence of cyber crimes and “impose appropriate consequences upon malicious cyber actors.”

‘Promoting American prosperity’

The second pillar talks a lot about the US government sponsoring innovation and creating jobs, but its key objective is to “promote the free flow of data across borders” (p.15). And if “repressive regimes” use US-made cybersecurity tools to “undermine human rights,” Washington will expose and counter them.

No word on whether that will apply to Google’s work in China, or Twitter, YouTube and Facebook’s throttling of speech that runs counter to their executives’ politics.

‘Preserving peace through strength’

Pillar three is where things get offensive – literally. Its objective is to “identify, counter, disrupt, degrade, and deter behavior in cyberspace that is destabilizing and contrary to national interests” while preserving US “overmatch.”

In addition to authorizing offensive cyber operations against suspected bad actors, the strategy proceeds from the assumption that the world craves US leadership, and envisions Washington promoting a “framework of responsible state behavior in cyberspace” based on international law and “voluntary non-binding norms.”

A coalition of like-minded states, led by the US would “coordinate and support each other’s responses to significant malicious cyber incidents.”

How? Well, through intelligence sharing, but also “buttressing of attribution claims, public statements of support for responsive actions taken, and joint imposition of consequences against malign actors.”

If that sounds a bit like what happened after the UK accused Russia, without evidence, of using a chemical agent to poison ex-spy Sergei Skripal and his daughter in Salisbury, and the US and other allies just took Whitehall’s word for it… that’s because it does.

‘Advancing US influence’

That leads us to the fourth and final pillar, advancing US influence around the globe. Accusing China not only of wanting to create a closed, censored internet by exporting that model elsewhere, the strategy envisions US evangelizing for a “free and open” internet.

Washington “will continue to work with like-minded countries, industry, civil society, and other stakeholders to advance human rights and Internet freedom globally and to counter authoritarian efforts to censor and influence Internet development,” the strategy says.

Does that mean the State Department intends to challenge the new EU copyright rules that would effectively outlaw memes and charge a “link tax”? Somehow that seems highly… unlikely.

How to Beat a Manipulator

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These six men own as much wealth as half the world’s population

By Caitlin Johnstone

Source: Consortium News

Humans are hackable. Ask any conman. Our desire to think we have control over our lives often hides this from ourselves, but most of us are highly suggestible and hypnotizable. If you think you’re not, you’re in more danger of being hacked than someone who has humbled themselves enough to see how this works in them.

There’s no need to be ashamed of being conned. Realizing that you’ve been, or are being, conned will naturally bring up feelings of embarrassment, but it’s never your fault that someone’s taken you for a ride. Get clear: conning someone is the crime; being conned is being a victim of that crime. That’s how the law sees it in fraud cases. Manipulators would love you to think that it’s your fault for allowing yourself to be manipulated, but that’s just another manipulation isn’t it?

Manipulators use one of our most astounding, useful, and beautiful human characteristics when they con us—empathy. Our innately trusting nature is the reason why we’ve been able to collaborate on large scales to create and innovate in extraordinary ways unseen anywhere else in the animal kingdom. Because we learn by modeling, and we are shaped by the group we inhabit and our urge to create harmony will make life viscerally uncomfortable until we are back in alignment with our tribe. We are the peacemakers; we seek alignment, which is how we are paced by manipulators into aligning with their sick agendas. How gross is it then that our ability to empathize and relate to each other is one manipulators use to control us?

Because of the reach of mass media, every single one of us is in an abusive relationship with plutocratic manipulators. Many of us are in personal relationships with manipulators too. Conveniently, the strategies for dealing with sociopathic manipulators are the exact same, from plutocrats to your live-in partner.

Get Clear on Your Own Will

You are easy prey if you don’t know what you want and you leave it up to others to decide for you. If you don’t have a sense of who you are and what you stand for, anyone can come in and co-opt that for their own sick agendas. Sit down, get quiet, and make an inventory of who you are and what you need. Don’t be squeamish about adding things that you don’t have yet. That’s the point. Make a list of what you need not just to survive, but to thrive. Apply the live-and-let-live rule to every one of your wants, and if you’re confident that nothing you want will hurt or interfere in anyone else’s will, then the list is good. You can stand by it unequivocally, and you should do so with as much strength and confidence as you can muster. Grow to its size and advocate loudly for it.

Watch Where the Resources Go

How do you really know if you’re being manipulated? Well, what manipulators understand that the rest of us don’t is that there are real life resources like sex, money, work, gold, oil, land, water, food, people, air, etc; and there are good feelings. They will always try to get you to swap real things for good feelings. If you don’t have empathy, you see the whole world in a completely different way. Most people are trying to get what they need without hurting anyone, because hurting someone hurts them too. Manipulators don’t experience that, so they just get what they need by telling their victim that they’ll hurt someone if they don’t hand it over.

Zoom out and take an inventory of who’s got all the stuff. Which way are the scales tipped? Good manipulators try to shift the ground underneath us to funnel the real wealth into their coffers, while placating us with good feelings about how blessed our hard work is and all that, and how selfish it would be to demand healthcare when there’s people in Syria who need to be bombed for their freedom. Leave all that behind and zoom and out and see who’s got all the stuff. Who has all the power, all the wealth, all the real stuff that you can really use in the real world, and who is barely existing but has hope for a better tomorrow?

Same in a marriage. Who has all the wealth, power, kudos, retirement savings, and who just has a story about what a good person they are? Religion has primed us for manipulation, and that was by design. Over millennia, we have been taught to value fealty, piety, hard work, submission, and to leave judgement and reward til after we die. This creates the perfect environment for manipulators who can see very clearly what the valuable real-world things are, and what are creations woven of fairytales. Work out what’s real in the here and now, and see who is in control of what should be your stuff. Is it you? If it’s not, you’re being manipulated out of it.

Watch Their Actions, Not Their Words

Manipulators only have words. They can’t just walk up to you and say “Give me your life savings,” they have to weave a complex story that makes you feel like it’s the right thing to do. A good conman will never ask for anything if they can get away with it. Ideally, they want you to make the offer. That’s the best kind of con, the one where the victim thinks it was their idea in the first place. A great conman will have you begging him to take the thing that he wanted all along, so then he can even get your gratitude for it.

By zooming out and seeing what they’re doing, rather than listening to what they’re saying, you can get a much better idea of what’s actually happening. If, for example, they’re saying they support single-payer healthcare while voting against it, sabotaging any efforts in any direction, taking money from donors who oppose it, and generally running interference on it, then those actions tell the real story. If the offer is not what you asked for but you are so desperate, so far down the line with them, so invested, and so cut off from any alternate solutions that you’ll take anything, then the con is complete.

Think about it from their point of view. Ideally, they want to be the ones you go to for the thing they don’t want you to have. They want to be the ones you place your hope and energy with so you don’t go to someone who will actually help them, but they also need to string you along for as long as possible, doing as little as possible, while taking as much energy as they can from you without arousing suspicion. They sing the song of inertia, of incrementalism, of “Not now, but soon.” That’s how they keep you trapped. If you zoom out and watch what they’re actually doing, rather than what they’re saying, you will know when it’s time to say bye Felicia and seek out an actual solution.

Don’t Try to Out-Manipulate Them

Once you’ve figured out you’re being manipulated, the knee-jerk reaction is to try and manipulate them back. Dude. Don’t even. Do you know how beautiful and precious you are to even think that that’s possible? These people have had no empathy for all their lives, and without all that emotional noise clouding their decisions, they have been playing every single person in their life like a game of chess. They are masters. They are five moves ahead of you already, and you’re just learning what a rook is. They have a whole lifetime of manipulating under their belt, and you are a total noob. You will lose that game. Don’t play it.

Instead, go with your strengths. Demand what you want and stick to that, loudly and unapologetically. Keep asking for what you want in the most direct way possible. Remember, a manipulator aims to take your will from you. Take it back. Many of us have been so manipulated for so long, we don’t even know what we want anymore. Make your inventory, keep it simple, keep it to what you know you need to thrive, and then plant your feet and demand it.

Meanwhile, keep pointing out the weird things they do to try and avoid giving you what they said they would. Shout it from the rooftops when they do something sly. They’ve used your politeness and goodwill to hide their little indiscretions. Don’t let them anymore. If they’re being creepy, say it. Don’t be manipulated into tacit consent by your politeness.

Keep telling the truth to yourself at least, even when it doesn’t tally with your worldview. Remain as intellectually honest with yourself as possible about what the knowable facts are, and what is conjecture or wishful thinking. Verify everything as much as you can so you know you’re standing on solid, factual ground. Manipulators love to keep people as confused as possible. Get as many quantifiable, verified, real-world facts as you can underneath you and build your worldview on them. And when you’re sure of yourself, say it like it’s true, because you know it is. Be unequivocal with the things you know. When you’re sure, don’t let anyone get in any wriggle room. Approach your private research with curiosity, objectivity and a light hand, but once the work is done, plant your feet in its truth and don’t let them be uprooted.

And lastly, don’t play by the rules, play by what is right. Manipulators love rules because they love to strategize about how to bend them, and how to bend you with them. Think of the worst kind of lawyers and you’ll know exactly what I mean. If you’re a deeply good person like you know you are, and you are always trying to point yourself at the highest interest, you know deep down if you’re doing the right thing. Trust your guts and forge ahead. Keep doing the right thing, even if it breaks a rule.

Apply The Manipulator’s Rules In Reverse

There’s something in psychology called “projection”, and anyone who has done a good deal of inner work will tell you that it’s a handy self-enquiry tool to see if what you hate in others, you can find in yourself. In order not to deal with our guilt, we tend to project the things we don’t like on to other people to hide the shame of it from ourselves. Bringing it out into the light can often result in some healthy forgiveness of both ourselves and our perception of others.

That’s great, but what the sages neglect to tell you is that people are also projecting all the time on to you. If you’re suggestible and good-hearted enough to not want to harm anyone, you can take everyone’s projections on to you as truth without even realizing it. Unless you develop a strong, conscious, healthy sense of who you are as a person, you can be gaslit into thinking that you’re any amount of the horrible things people project on to you, and that can easily grind you to a confused and babbling halt. Again, take an inventory of who you are and what you want, and grow in size until you can stand in that truth and defend it. Find your will and take it back.

Manipulators particularly use projection as a tactic to hide what they’re doing to you in plain sight. A manipulator can have you chasing your tail by simply suggesting that you or others are doing what you are seeing them doing with your own eyes. DNC caught rigging the election? Oh no, it was actually Russia who rigged the election by catching the DNC rigging the election. See what I did there? It’s so dumb, but it works.

Here’s the key: simply reverse the pronouns. When faced with a manipulator, everything he says about you, he is saying about himself, and everything he says about himself, is what he thinks of you. If he’s telling you you’re duplicitous and you’re a liar and you’re trying to take him for all he’s got, he’s actually saying he’s duplicitous and he’s a liar and he’s trying to take you for all you’ve got. If you have good grounds to believe you are being manipulated by someone, reverse the pronouns in your mind and let them tell you who they are. It works from personal relationships right up to the grand manipulators employed by the plutocrats.

Bring as much awareness as possible to all the ways you’re being manipulated, and all the ways you’ve been inadvertently manipulating. Make it as conscious in yourself as possible so we can all add to the sum of human knowledge as to how to transcend the manipulations. Once we draw back and fill out to our own individual sovereign boundaries, we will be able to trust ourselves to stand in our truth. We will also be able to see who we can trust so much more easily, and once you know you can trust someone, you can collaborate with them. These newly-conscious and divine collaborations will create the very things we need to solve the real world problems we face as a species and take the will of the planet from the sociopaths and return it to the will of the people.

And that’s really all it will take. A tipping point of un-manipulatable and awake people collaborating to create new systems that will surpass the old is all it will take to wrest power from the manipulators who only have the old Biblical tools of fear, guilt and shame to work with. This is doable, and it only needs you.

 

This commentary was originally published on CaitlinJohnstone.com .

 

Saturday Matinee: The Case of the Grinning Cat

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Synopsis from Icarus Films:

In his newest film, French documentarian and cinema-essayist Chris Marker reflects on French and international politics, art and culture at the start of the new millennium. In November 2001, the filmmaker became intrigued, as did many other Parisians, by the sudden appearance of alluring portraits of grinning yellow cats on buildings, Metro walls and other public surfaces. Marker’s cinematic efforts to document the mysterious materializations of this charming feline throughout Paris are a recurring theme of THE CASE OF THE GRINNING CAT.

This engaging record of Marker’s cinematic peregrinations throughout the city, visually energized by his free-association montage style, chronicles strikes, demonstrations, memorials, election campaigns, celebrity scandals, international political incidents, and a seemingly endless variety of political protests (against the Iraq War, against China’s occupation of Tibet, against the government’s ban on the wearing of Muslim headscarves). The personalized commentary running throughout THE CASE OF THE GRINNING CAT offers the simultaneously learned and witty reflections of the filmmaker, now in his early eighties, on both the contemporary and historical implications of these varied events and personalities.

The mysterious grinning yellow cats soon begin to appear amidst the banners and signs in some of the political demonstrations. Eventually, the creator of the grinning cats is revealed to be an art collective known as Mr. Cat, whose members are shown painting a massive representation of their mascot on the plaza before the Pompidou Center. The filmmaker’s own famous cat caricature soon allies with Mr. Cat, as Marker speculates on the political possibilities of such a feline association.

Chris Marker concludes THE CASE OF THE GRINNING CAT with thoughts on the vital importance of such expressions of imagination in our public lives, echoing the May ’68 slogan that “La poésie est dans la rue” (“Poetry is in the street”).

Amazon and Apple: Wall Street’s Trillion Dollar Babies

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By Dean Baker

Source: CounterPunch

Last month Amazon joined Apple, becoming the second company in the world to have a $1 trillion market capitalization. Amazon’s accomplishment didn’t cause quite as much celebration as Apple’s – it pays to be number one – nonetheless this was treated as a milestone that all of us should view as good news.

Actually, the celebratory coverage of both events demonstrated the incredibly ill-informed nature of much economic reporting in the United States. A big run-up in share prices is good news for the people who own lots of stock in the company; it is not especially good news for anyone else.

In principle, the value of a stock is supposed to represent the expected future earnings of the company. I said “supposed” because stock prices fluctuate wildly in response to all sorts of things that are not obviously connected to future earnings, but in the textbook definition, it is the discounted value of future earnings that determine stock prices. To be clear, this is not the socialist textbook, this is the capitalist textbook that is taught in business schools.

What does it mean that Amazon and Apple have market valuations of more $1 trillion? Presumably, it means that investors are now more optimistic about the companies’ future profit potential. It’s difficult to see why the rest of us should celebrate this outcome.

Apple obviously makes products that consumers value, and in that sense, it is contributing to the economy and generating wealth. But, suppose instead of one huge company we had 10 little (or littler) Apples that sold iPhones, computers, and the other items that comprise Apple’s product line? Would we be any poorer as a society in that case, even if the market cap of our leading tech company was just $100 billion?

Or, even with Apple as our dominant tech company, suppose the surge over the $1 trillion barrier was due to a victory in an antitrust case, which would allow Apple to charge higher prices going forward. That’s great for Apple’s stockholders, but what exactly would the rest of us be celebrating? Paying more money for our iPhones?

In the same vein, in the past, Apple has been caught conspiring with other Silicon Valley companies, agreeing not to compete for workers. Apple, along with its co-conspirators, ended up paying a substantial settlement as a result.

Suppose Apple found a legal way to fix wages or bought a judge to make it legal. The prospect of a lower wage bill would also be good for Apple’s stock price, but not especially good news for those of us who are more likely to make our living from working than owning Apple stock. Again, there is not much in this story for most of us to celebrate.

The celebration for Amazon is even more peculiar. Amazon is clearly an innovative company that has sped the development of Internet retailing. It also has specialized in tax avoidance, eliciting investment incentives from state and local governments, and abusive labor practices.

Perhaps the crossing of the $1 trillion threshold was associated with investors’ confidence that Amazon’s CEO had developed a new and more effective tax avoidance scheme. Again, great news for Amazon stockholders, but pretty bad news for the folks who will have to make up the revenue shortfall.

What is notably different about Amazon is that, unlike Apple, the company does not have huge profits. While Apple earned $48.4 billion in after-tax profits in 2017, Amazon’s profit was just over $3 billion. That gives the company an incredible price-to-earnings ratio of more than 300-to-1.

There are two stories we can tell here. One is that investors expect Amazon’s profits to increase enormously. This would be a case where it takes advantage of its market power to increase its profit margins hugely. Ordinarily, this would be the basis for antitrust action, but given the corruption of the political system, it is certainly possible the company could get away with it. Again, is a future of higher prices something the rest of us should really be celebrating?

The other possibility is that Amazon’s stock price is driven by fantasy, like the Internet stocks of the late 1990s or Bitcoin today. Presumably, at some point reality will reassert itself, but should the rest of us celebrate ill-informed investors being taken for ride?

It is striking that so many would see economic or social progress as being in some way captured by stock valuations. In 1953 Jonas Salk developed the polio vaccine. This eventually led to the near eradication of a disease that had killed or crippled tens of millions of people.

Salk didn’t try to patent his invention. A private charity funded the research. But, what if there had been a Salk Inc. that had the patent on a vaccine that could save tens of millions of lives? Surely the market cap would be an order of magnitude larger than either Apple’s or Amazon’s. Was it a loss to society that the vaccine was made available for pennies rather than tens of thousands of dollars a shot?

If we want to talk about value to society, the anti-smoking crusaders of the last four decades have saved tens of thousands of lives and improved the health of millions more by reducing smoking in the United States and around the world. The people who led this fight, most of whom were women, won’t be featured on the covers of business magazines, but they did much more to enhance society’s wealth than Jeff Bezos.

Anyhow, congratulations to Apple and Amazon’s stockholders on their stock gains. They have been fortunate. The rest of us, not so much.

Taxpayers Are Footing the Bill for Sky-High CEO Salaries

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Billions in taxpayer funds go to CEOs who pay their workers peanuts. We can change that.

By Sam Pizzigati

Source: Other Words

Politicians often gab about the “private sector” and the “public sector,” as if these two categories of economic activity operated as two completely separate worlds.

In reality, these two sectors have always been deeply intertwined.

How deeply? Every year, the federal government spends about half a trillion dollars buying goods and services from the private sector. State and local government contracts with private-sector enterprises add hundreds of billions more.

And private-sector companies don’t just receive contracts from our governmental entities. They receive all sorts of subsidies — billions upon billions of dollars in “corporate welfare.”

Where do all these dollars come from? They come from us, America’s taxpayers. Without the tax dollars we provide, almost every major corporation in the United States would flounder. Some would simply cease to exist. The defense contractor Lockheed Martin, for instance, takes in almost all its revenue from government contracts.

This private sector reliance on public tax dollars gives us, as citizens, some leverage over the behavior of our largest and most powerful corporations. We could, if we so chose, deny those dollars to corporations that engage in behaviors that undermine the values we hold dear.

On other fronts, we already do this denying. For over a generation now, we’ve leveraged the power of the public purse against companies with employment practices that discriminate on the basis of race and gender. Companies that discriminate can’t get government contracts because we’ve come to a consensus, as a society, that we don’t want our tax dollars subsidizing racial and gender inequality.

Unfortunately, our tax dollars are still subsidizing — in a big way — economic inequality, as a new Institute for Policy Studies report on CEO pay details quite vividly. Billions of our tax dollars are annually going to corporations that pay their top executives more in a week, or even a day, than their typical employees can make over an entire year.

The late Peter Drucker, the founder of modern management science, believed that no corporate enterprise that pays its CEO over 25 times what its workers are earning could operate efficiently and effectively over the long haul. In 2017, every single one of the federal government’s 50 largest private contractors paid its chief executive over 25 times more than its most typical workers.

In fact, most paid their top execs well over 100 times more.

And at one, DXC Technology, the CEO pulled down over $32 million in 2017 pay — over 800 times the compensation of the firm’s typical employees.

Let’s add a little context here. The president of the United States earns $400,000 a year. The CEOs of the 50 private companies with the largest federal contracts last year averaged over $13.5 million. The CEOs of the 50 largest recipients of federal subsidies last year averaged over $12 million.

Our tax dollars, in other words, are helping a lucky few become fabulously rich.

We do live, as our politicians like to point out, in a “free country.” Corporations can pay their top execs whatever they want. But we taxpayers have freedom, too. We can freely deny our tax dollars to enterprises that are making our society ever more unequal.

Some lawmakers are starting to step in that direction. Five states have begun considering legislation that would make it harder for companies with wide CEO-worker pay gaps to get government contracts and tax breaks. And one city — Portland, Oregon — has already enacted legislation that taxes corporations with wide CEO-worker pay gaps at a higher rate than corporations with more modest gaps.

We need more Portlands.

Moscow blames downing of Russian plane near Syria on Israeli “provocation”

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By Bill Van Auken

Source: WSWS.org

Tensions remain high in Syria after the downing of a Russian Il-20 electronic intelligence plane and the killing of all 15 crew members aboard during a major Israeli airstrike against the Syrian port city of Latakia Monday night.

The attack on Latakia, a government stronghold and the site of Russia’s major military base in the country, represented a dangerous escalation of the war in Syria, which the Israelis almost certainly carried out in consultation with Washington.

Tel Aviv claimed that its strike was motivated by intelligence that weapons located there were being transferred from Iran to the Lebanese Shia movement Hezbollah. A more powerful underlying motive, however, is the frustration of US imperialism and its allies, Israel and the NATO powers, over the increasing consolidation of control over Syria by the Russian-backed government of President Bashar al-Assad and the failure of the Al Qaeda-linked militias that they backed in a proxy war for regime change.

The Russian Ministry of Defense Tuesday acknowledged that its plane had been hit by Syrian anti-aircraft fire, but placed blame for the incident squarely on what it termed a “provocation” and “hostile” act on the part of Israel.

The Russian turboprop plane was returning to the Russian-run Hmeymim airbase, when it went off the radar screens in the midst of an attack by four Israeli F-16 fighter jets against Syrian defense industry facilities in Latakia.

“The Israeli pilots were using the Russian aircraft as a shield and pushed it into the line of fire of the Syrian defense,” Igor Konashenkov, the Russian defense ministry spokesperson, said on Tuesday.

Russia’s Interfax news agency quoted Konashenkov as describing Israel’s military strike as “hostile” and “an act of provocation,” warning, “We reserve the right to take commensurate measures in response.”

This response was echoed by Russian Defense Minister Sergey Shoigu, who declared that the “blame for the downing of the Russian plane and the deaths of its crew members lies squarely on the Israeli side.” He added, “The actions of the Israeli military were not in keeping with the spirit of the Russian-Israeli partnership, so we reserve the right to respond.”

Later the same day, Russian President Vladimir Putin demonstratively backed away from this sharp response and implicit threat of military retaliation.

Speaking in Moscow at a joint press conference with Hungarian Prime Minister Viktor Orban, Putin drew a distinction between Latakia and the 2015 incident in which a Turkish warplane had shot down a Russian S24 jet, after which Moscow imposed severe sanctions against Ankara.

The Turkish military, he said, had “deliberately downed” the Russian plane, while the Latakia incident “looks like a chain of tragic circumstances, because the Israeli plane didn’t shoot down our jet.”

Subsequently, Putin took a telephone conversation from Israeli Prime Minister Benjamin Netanyahu, who reportedly expressed condolences over the deaths of the Russian plane crewmembers, while reiterating Tel Aviv’s determination to continue carrying out strikes against targets in Syria that it claims are linked to Iran and Hezbollah.

Israeli government officials had placed the entire blame for the downing of the plane on Iran and Hezbollah, while stating that its immediate cause was “extensive and inaccurate Syrian anti-aircraft (surface-to-air missile) fire.”

The Kremlin’s readout of the phone conversation had Putin adopting a somewhat tougher line, reportedly telling Netanyahu that Israeli operations like the one in Latakia “violated Syrian sovereignty” and “agreements around the prevention of dangerous incidents.” The Kremlin added, “The president of Russia urged the Israeli side not to allow such situations from now on.”

Israel earlier this month acknowledged that it has carried out at least 200 airstrikes against Syria over the past 18 months, dropping some 800 munitions on targets across the country. Each of these was also a violation of “Syrian sovereignty.” They have been carried out, however, with the tacit permission of Moscow, which has received advance notice of these operations on an Israeli-Russian “deconfliction” line set up three years ago, and has thus far refrained from using its advanced antiaircraft systems deployed in Syria against Israeli warplanes.

Whether Russia will now deny Israel a green light for airstrikes in Syria, and for how long, remains to be seen.

The shifting tone in the response from Moscow to the deaths of its military personnel may reflect divisions within the Kremlin, or between Putin’s administration and the Russian military command. It almost certainly also expresses fears that the situation in Syria could quickly spill over into a wider military confrontation, including one involving the world’s two major nuclear powers, the US and Russia, as well as the region’s only nuclear-armed state, Israel. Washington would almost certainly respond militarily to any Russian retaliation against the Israeli action in Latakia.

Putin’s government represents the interests of the Russian oligarchs who consolidated their power in the wake of the Moscow Stalinist bureaucracy’s dissolution of the Soviet Union. It has sought to promote Russian interests in the oil-rich Middle East, not only through backing the Assad government—alongside Iran—against the Western-backed Islamist militias employed as proxies in a war for regime change, but also by forging close ties with Israel, with which Russia has established military, trade and investment links.

This complex and conflicting set of relations also includes the attempt by Moscow to cement closer ties with Turkey, which has backed a range of Islamist militias in Syria, while joining the Astana talks together with Moscow and Tehran in search of a ceasefire in the Syrian conflict.

The attack on Latakia came within hours of the announcement Monday by Putin and Turkish President Recep Tayyip Erdogan of an agreement reached in the Russian Black Sea resort city of Sochi to establish a jointly patrolled “demilitarized zone” between Syrian government troops and the Western-backed “rebels” concentrated in Syria’s northwestern Idlib province.

For weeks there had been predictions that a Russian-backed Syrian government offensive in Idlib was imminent, along with mounting threats by Washington and its allies, including Britain, France and Germany, to carry out a sustained military retaliation against an advance on the last major redoubt of the Al Qaeda-linked “rebels.”

The deal reached between Moscow and Ankara calls for the DMZ separating Syrian government forces from the Islamist militias to consist of a 15 to 20-kilometer buffer around the province. All “radical”, i.e., Al Qaeda-affiliated, militias are supposed to be removed from the area.

Turkey’s Foreign Minister Mevlüt Çavuşoğlu told reporters Tuesday that Ankara will deploy more troops to Idlib in the coming days to patrol the border areas. Turkish tanks and other military vehicles had already been dispatched to the south of the province, an area where Russian and Syrian airplanes had carried out strikes.

Asked where the Al Qaeda-affiliated militias would go, Çavuşoğlu said that Ankara and Moscow were still working on the issue.

The US has signaled that the more than 2,000 American troops presently deployed in Syria will remain indefinitely, not merely to complete their supposed mission of combating the Islamic State of Iraq and Syria (ISIS), but to roll back Iranian and Russian influence in both the country and the region and to deny Damascus control of the economically vital oil fields now under US control.

Washington has no interest in seeing the agreement between Moscow and Ankara over Idlib succeed. At a UN Security Council meeting Tuesday on Syria, where UN Special Envoy on Syria Staffan de Mistura called for a speedy implementation of the Russian-Turkish agreement, the US Special Representative for Syria Engagement, James Jeffrey, insisted that, “The only way forward is a genuine and inclusive political solution,” Washington’s euphemism for regime change. To this end, the US and its allies, Israel chief among them, are prepared to push the country and the region into a potentially world catastrophic war.

For Economic Truth Turn To Michael Hudson

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By Paul Craig Roberts

Source: PaulCraigRoberts.org

Readers ask me how they can learn economics, what books to read, what university economics departments to trust. I receive so many requests that it is impossible to reply individually. Here is my answer.

There is only one way to learn economics, and that is to read Michael Hudson’s books. It is not an easy task. You will need a glossary of terms. In some of Hudson’s books, if memory serves, he provides a glossary, and his recent book “J Is for Junk Economics” defines the classical economic terms that he uses. You will also need patience, because Hudson sometimes forgets in his explanations that the rest of us don’t know what he knows.

The economics taught today is known as neoliberal. This economics differs fundamentally from classical economics that Hudson represents. For example, classical economics stresses taxing economic rent instead of labor and real investment, while neo-liberal economics does the opposite.

An economic rent is unearned income that accrues to an owner from an increase in value that he did nothing to produce. For example, a new road is built at public expense that opens land to development and raises its value, or a transportation system is constructed in a city that raises the value of nearby properties. These increases in values are economic rents. Classical economists would tax away the increase in values in order to pay for the road or transportation system.

Neoliberal economists redefined all income as earned. This enables the financial system to capitalize economic rents into mortgages that pay interest. The higher property values created by the road or transportation system boost the mortgage value of the properties. The financialization of the economy is the process of drawing income away from the purchases of goods and services into interest and fees to financial entities such as banks. Indebtedness and debt accumulate, drawing more income into their service until there is no purchasing power left to drive the economy.

For example, formerly in the US lenders would provide a home mortgage whose service required up to 25% of the family’s monthly income. That left 75% of the family’s income for other purchases. Today lenders will provide mortgages that eat up half of the monthly income in mortgage service, leaving only 50% of family income for other purchases. In other words, a financialized economy is one that diverts purchasing power away from productive enterprise into debt service.

Hudson shows that international trade and foreign debt also comprise a financialization process, only this time a country’s entire resources are capitalized into a mortgage. The West sells a country a development plan and a loan to pay for it. When the debt cannot be serviced, the country is forced to impose austerity on the population by cutbacks in education, health care, public support systems, and government employment and also to privatize public assets such as mineral rights, land, water systems and ports in order to raise the capital with which to pay off the loan. Effectively, the country passes into foreign ownership. This now happens even to European Community members such as Greece and Portugal.

Another defect of neoliberal economics is the doctrine’s denial that resources are finite and their exhaustion a heavy cost not born by those who exploit the resources. Many local and regional civilizations have collapsed from exhaustion of the surrounding resources. Entire books have been written about this, but it is not part of neoliberal economics. Supplement study of Hudson with study of ecological economists such as Herman Daly.

The neglect of external costs is a crippling failure of neoliberal economics. An external cost is a cost imposed on a party that does not share in the income from the activity that creates the cost. I recently wrote about the external costs of real estate speculators. https://www.paulcraigroberts.org/2018/04/26/capitalism-works-capitalists/ Fracking, mining, oil and gas exploration, pipelines, industries, manufacturing, waste disposal, and so on have heavy external costs associated with the activities.

Neoliberal economists treat external costs as a non-problem, because they theorize that the costs can be compensated, but they seldom are. Oil spills result in companies having to pay cleanup costs and compensation to those who suffered economically from the oil spill, but most external costs go unaddressed. If external costs had to be compensated, in many cases the costs would exceed the value of the projects. How, for example, do you compensate for a polluted river? If you think that is hard, how would the short-sighted destroyers of the Amazon rain forest go about compensating the rest of the world for the destruction of species and for the destructive climate changes that they are setting in motion? Herman Daly has pointed out that as Gross Domestic Product accounting does not take account of external costs and resource exhaustion, we have no idea if the value of output is greater than all of the costs associated with its production. The Soviet economy collapsed, because the value of outputs was less than the value of inputs.

Supply-side economics, with which I am associated, is not an alternative theory to neoliberal economics. Supply-side economics is a successful correction to neoliberal macroeconomic management. Keynesian demand management resulted in stagflation and worsening Phillips Curve trade-offs between employment and inflation. Supply-side economics cured stagflation by reversing the economic policy mix. I have told this story many times. You can find a concise explanation in my short book, “The Failure of Laissez Faire Capitalsim.” This book also offers insights into other failures of neoliberal economics and for that reason would serve as a background introduction to Hudson’s books.

I can make some suggestions, but the order in which you read Michael Hudson is up to you. “J is for Junk Economics” is a way to get information in short passages that will make you familiar with the terms of classical economic analysis. “Killing the Host” and “The Bubble and Beyond” will explain how an economy run to maximize debt is an economy that is self-destructing. “Super Imperialism” and “Trade, Development and Foreign Debt” will show you how dominant countries concentrate world economic power in their hands. “Debt and Economic Renewal in the Ancient Near East” is the story of how ancient economies dying from excessive debt renewed their lease on life via debt forgiveness.

Once you learn Hudson, you will know real economics, not the junk economics marketed by Nobel prize winners in economics, university economic departments, and Wall Street economists. Neoliberal economics is a shield for financialization, resource exhaustion, external costs, and capitalist exploitation.

Neoliberal economics is the world’s reigning economics. Russia is suffering much more from neoliberal economics than from Washington’s economic sanctions. China herself is overrun with US trained neoliberal economists whose policy advice is almost certain to put China on the same path to failure as all other neoliberal economies.

It is probably impossible to change anything for two main reasons. One is that so many greed-driven private economic activities are protected by neoliberal economics. So many exploitative institutions and laws are in place that to overturn them would require a more thorough revolution than Lenin’s. The other is that economists have their entire human capital invested in neoliberal economics. There is scant chance that they are going to start over with study of the classical economists.

Neoliberal economics is an essential part of The Matrix, the false reality in which Americans and Europeans live. Neoliberal economics permits an endless number of economic lies. For example, the US is said to be in a long economic recovery that began in June 2009, but the labor force participation rate has fallen continuously throughout the period of alleged recovery. In previous recoveries the participation rate has risen as people enter the work force to take advantage of the new jobs.

In April the unemployment rate is claimed to have fallen to 3.9 percent, but the participation rate fell also. Neoliberal economists explain away the contradiction by claiming that the falling participation rate is due to the retirement of the baby boom generation, but BLS jobs statistics indicate that those 55 and older account for a large percentage of the new jobs during the alleged recovery. This is the age class of people forced into the part time jobs available by the absence of interest income on their retirement savings. What is really happening is that the unemployment rate does not include discouraged workers, who have given up searching for jobs as there are none to be found. The true measure of the unemployment rate is the decline in the labor force participation rate, not a 3.9 percent rate concocted by not counting those millions of Americans who cannot find jobs. If the unemployment rate really was 3.9 percent, there would be labor shortages and rising wages, but wages are stagnant. These anomalies pass without comment from neoliberal economists.

The long expansion since June 2009 might simply be a statistical artifact due to the under-measurement of inflation, which inflates the GDP figure. Inflation is under-estimated, because goods and services that rise in price are taken out of the index and less costly substitutes are put in their place and because price increases are explained away as quality improvements. In other words, statistical manipulation produces the favorable picture required by The Matrix.

Since the financial collapse caused by the repeal of Glass-Steagall and by financial deregulation, the Federal Reserve has robbed tens of millions of American savers by driving real interest rates down to zero for the sole purpose of saving the “banks too big to fail” that financial deregulation created. A handful of banks has been provided with free money—in addition to the money that the Federal Reserve created in order to take the banks’ bad derivative investments off their hands—to put on deposit with the Fed from which to collect interest payments and with which to speculate and to drive up stock prices.

In other words, for a decade the economic policy of the United States has been run for the benefit of a few highly concentrated financial interests at the expense of the American people. The economic policy of the United States has been used to create economic rents for the mega-rich.

Neoliberal economists point out that during the 1950s the labor force participation rate was much lower than today and, thereby, they imply that the higher rates prior to the current “recovery” are an anomaly. Neoliberal economists have no historical knowledge as the past is of no interest to them. They do not even know the history of economic thought. Whether from ignorance or intentional deception, neoliberal economists ignore that the lower labor force participation rates of the 1950s reflect a time when married women were at home, not in the work force. In those halcyon days, one earner was all it took to sustain a family. I remember the days when the function of a married woman was to provide household services for the family.

But capitalists were not content to exploit only one member of a family. They wanted more, and by using economic policy to suppress pay while fomenting inflation, they drove married women into the work force, imposing huge external costs on the family, child-raising, relations between spouses, and on the children themselves. The divorce rate has exploded to 50 percent and single-parent households are common in America.

In effect, unleashed Capitalism has destroyed America. Privatization is now eating away Europe. Russia is on the same track as a result of its neoliberal brainwashing by American economists. China’s love of success and money could doom this rising Asian giant as well if the government opens China to foreign finance capital and privatizes public assets that end up in foreign hands.