Category Archives: Economics

Stop Pretending the Rich Care About You

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By Dr. Bones

Source: The Conjure House

One of the terrible things about being a lone bastion of bomb-throwing, fire-starting, up-against-the-wall-fascist-killing type of Anarchism is you have to mingle and jive with the enemy. Like a Seminole off the reservation and walking into the Hard Rock Casino for the first time your nerves and mind are almost assaulted by the sheer idiocy of what we call modern living. I speak of course of the fake empathy held by rich “left” liberals and their kin.

Take for instance the Meryl Streep acceptance speech, widely being lauded as…well, nobody really seems to say what it is besides some rich lady getting up on stage and talking about somebody she doesn’t like. Everywhere I look online the words “heroic” are being used, how the speech was “everything.”

Why?

Because some Hollywood actress who supported a widely acknowledged War Criminal feels salty that her personal team of bourgeoisie didn’t win an election? Because she “bravely” stood up at a catered event in a dress that cost more than you or I make in a month to tell other rich people how “persecuted” they were?

I heard the speech, actually sat down and watched it. No where is she saying that the United States is some fascist superpower, that we’ve fucked up the world and Donald Trump is set to make it even worse; she’s merely upset it’s not bombing the ever-living shit out of Syria with silk gloves on.

These people are not your goddamn comrades, they are not far away intellectuals that only need to read “the bread book” to figure out where they’ve gone wrong. These are the same people who RALLIED around a woman that called Black children “super-predators” for godsake!

These creatures, these slimy denizens of far off nooks and crannies filled with champagne and $100,000 fundraisers are absolutely wedded to the same system that produced Donald Trump in the first place. They are not looking to rock the boat, they are not feeling sorry for foreign-born people and outsiders when they declare anything not on TV as “fake news” from spooky ole’ Russia and casually muse how many megatons it might take to wipe Moscow off the fucking map.

How about that speech to a bunch of bankers where Hillary makes clear her support for a no-fly zone over Syria would end up turning its people into hamburger meat?

“They’re getting more sophisticated thanks to Russian imports. To have a no-fly zone you have to take out all of the air defense, many of which are located in populated areas.  So our missiles, even if they are standoff missiles so we’re not putting our pilots at risk—you’re going to kill a lot of Syrians.”

Where was the concern for foreign lives then?

Hollywood “care” for the most “at risk” is merely an act, a feigned empathy that is designed to make you forget that when push comes to shove they will make sure their money in tax-free offshore accounts stays safe rather than fund homeless shelters or soup kitchens.

They are as deceitful and treacherous as their cousins on the Right are stupid and violent. They are the Athenian merchants hailing their own empire while criticizing the growth of Sparta.

“Disrespect invites disrespect. Violence incites violence,” says Meryl, clutching her pearls amid other American aristocrats whose lives depend on the ongoing exploitation of millions. I looked twice to see if the fucking Romanovs or Marie Antoinette had possessed the woman but alas, she was spirit free. She is so out of touch she seems bewildered that anybody might disagree or even dislike the esteemed patricians she’s speaking to.

From where exactly does Meryl think the rage of the Red States comes from, their desire for change at any cost? Could it be the strip-mining of American manufacturing?

“The story changed dramatically in 2000. Since then, the U.S. has shed 5 million manufacturing jobs, a fact opponents of free trade mention often…

Since the 1960s, manufacturing has always paid substantially more than the minimum wage. Even today, the manufacturing jobs that remain average $20.17 an hour. That’s nearly three times the federal minimum wage.”

The fall in American standards of living?

“Today the average worker makes $8.50/hour — more than 57% less than in 1970. And since the average wage directly determines the standard of living of our society, we can see that the average standard of living in the U.S. has plummeted by over 57% over a span of 40 years.”

The obscene growth in CEO profits while Millennials earn less than their parents did?

“U.S. CEOs of major companies earned 20 times more than a typical worker in 1965; this ratio grew to 29.9-to-1 in 1978 and 58.7-to-1 by 1989, and then it surged in the 1990s to hit 376.1-to-1 by the end of the 1990s recovery in 2000. The fall in the stock market after 2000 reduced CEO stock-related pay (e.g., options) and caused CEO compensation to tumble until 2002 and 2003. CEO compensation recovered to a level of 345.3 times worker pay by 2007, almost back to its 2000 level. The financial crisis in 2008 and accompanying stock market decline reduced CEO compensation after 2007–2008, as discussed above, and the CEO-to-worker compensation ratio fell in tandem. By 2014, the stock market had recouped all of the value it lost following the financial crisis. Similarly, CEO compensation had grown from its 2009 low, and the CEO-to-worker compensation ratio in 2014 had recovered to 303.4-to-1, a rise of 107.6 since 2009.”

“Single young people are getting poorer compared to the average population even those with dependent children, with stagnating disposable income and onerous living costs pressing down on prosperity.

New data accessed by the Guardian reveals that singletons aged 25 to 29 in eight rich countries – the US, UK, Australia, Canada, Spain, Italy, France and Germany – have become poorer over the last 20 years compared with the average population, and unattached young adults are finding it harder than ever to set up on their own.”

All facts conveniently left out of Meryl’s hard-hitting critique. The Left abandoned the working class for 50 years in favor of upper-middle class kids in college who spent more time dying their hair than reading Marx or even Stirner. NAFTA, a hellish neo-liberal agreement that looted Mexico to fatten the profits of American corporations, was drawn up not by some scary Republican tyrant but the “cool” Democrat and blowjob-aficionado Bill Clinton.

“During NAFTA, Mexico has had the slowest rate of economic growth than [with] any other previous economic strategy since the 1930s. From 1994 to 2013, Mexico’s gross domestic product per capita has grown at a paltry rate of 0.89 percent per year.” Additionally, “During NAFTA, Mexico’s economy grew much slower than almost every Latin American country. So to say that NAFTA has benefited the Mexican economy is also a myth. It has boosted trade and investment, but this has not translated into meaningful growth that generates jobs. One of the problems that NAFTA has generated is basically an exporting economy for transnational corporations, not for the Mexican industry per se.”

It turns out that not only did NAFTA, “flood Mexico with imported corn and cheap grains from the United States,” but “it also destroyed Mexico’s own industries,” according to Perez-Rocha.”

Where THE FUCK was Hollywood for that? For Libya? For Fast and Furious? For literally any of the ongoing despicable behavior this godforsaken Imperium has exported to millions of innocent human beings across the globe for the last eight fucking years?

Meryl Streep, and the millions of well-to-do liberals like her, want to live in a world where every McDonald’s is turned into a Panera, where every Wal-Mart blossoms into a Target. Sure you still work there, and you have no organizing rights and your pay is shitty, BUT at least your owners give money to gay charities and recycle!

Hooray ethical consumption! Never mind the suicide nets around those factories, did you know for every shirt you buy we’ll give $5 to help feed silverback gorillas? I mean, we don’t know how it works, and we can’t really say HOW we feed them but…but you can feel good about the shirt!

These people are only allies in the sense that they discredit our other enemies. Anybody that wants to shit on Donald Trump has my blessing but to pretend that they actually desire anything close to an increase in economic quality is a farce.

They are merely rich people that don’t want to feel guilty about being rich.

Don’t worry Meryl, as the US economy continues to take a shit and standards of living race to the bottom, more and more of us will be more than happy to help you overcome your feelings of guilt.

By seizing and redistributing the excesses that vex you so.

 

Gonzo journalism at no cost is my gift to you. Want to help keep me from starving to death or buy me a beer? Do me a favor and make a donation of any size and I’ll promise not to haunt you when I die.

Future Crimes

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By John Steppling

Source: CounterPunch

“Precrime Analytical Wing: Contains the precognitives and the machinery needed to hear and analyze their predictions of future crimes.”

Philip K. Dick, Minority Report

“I must confess that over the past few years I have been gravely disappointed with the white moderate. I have almost reached the regrettable conclusion that the Negro’s great stumbling block in his stride toward freedom is not the White Citizen’s Counciler or the Ku Klux Klanner, but the white moderate, who is more devoted to “order” than to justice; who prefers a negative peace which is the absence of tension to a positive peace which is the presence of justice…”

Martin Luther King

“The intellectuals are the dominant group’s ‘deputies,’ exercising the subaltern functions of social hegemony and political government”.

Gramsci

There was a jaw dropping but not unexpected article at The Guardian this week. It was actually part of a series of pieces at that paper that have sought to manufacture a legacy for Obama, the outgoing president, since his actual legacy is one of imperialist foreign policy, CIA support of jihadists, right wing coups, and most acutely, perhaps, a massive subverting of free speech and civil liberties. What Robert Parry has called a ‘war on dissent’. The Guardian piece took the form of asking novelists, public intellectuals {sic} and TV hacks what they perceived to be Obama’s legacy — and even the use of that word, *legacy* is a loaded indicator of the direction this piece was headed. What struck me most was not the predictable support for Obama policy (more on that later) but the utter banality of the writing. There were writers in this group who I have admired (Richard Ford for one, Marilynne Robinson, as well) but the sentiments were so stupefyingly superficial, so fatuous and fawning that it was hard not to see this as a kind of mini referendum on the state of Western culture.

Joyce Carol Oates (for whom ten words is usually better than the right word) described Obama as…“Brilliant and understated, urbane, witty, compassionate, composed..”. Siri Hutsvedt (who honestly I had to look up…finding her most notable achievement was being married to Paul Auster) wrote…“For eight years, we have been represented by an elegant, well-spoken, funny, highly educated, moderate, morally upright, preternaturally calm black man”. Richard Ford wrote…“This cold morning, when I think about Obama, immersed in what must be a decidedly mixed brew of emotions – mixed about his deeds, mixed about his effects on the US, decidedly mixed about our future – I’m confident he is thinking, right to his last minute in the office, as the president, and not much about, or for, himself. That’s what I expected when I voted for him – that he’d be a responsible public servant who’d try to look out for the entire country.” I know, I know, but that’s what he wrote. Look it up if you don’t believe me. Perhaps this is what a career of University teaching does to one. Edmund White called him one of our great presidents (love the use of *our*).

Jane Smiley, who at the least mentioned TPP and drones, but ended with…“As a national leader, he has engendered more chaos, but it is necessary chaos – a loud and meaningful return to the question of what constitutes the real America.” A necessary chaos? The fuck does that mean? I ask that sincerely, sort of. By the time I reached the end of this saccharine mind numbing bathos I thought back to the 1968 Democratic Convention and to Esquire Magazine, in its golden era, who sent William Burroughs, Jean Genet, Terry Southern and John Sack to cover the convention. I thought back to Robert Bly and his organizing of Writers against the Vietnam war. The readings he gave with Galway Kinnell and Ginsburg, and a dozen others. And to the way Bly spoke of art and the role of art in a society. In an interview with Michael Ventura, around the time of the Iraq invasion…

Bly:I don’t think we believe that a Great Mother is lying to us. It’s a father who’s lying to us. Thee whole system, in a way, is a father system.
Ventura: It’s a patriarchy, so it’s a father who’s lying.
Bly: Exactly. And we eventually get the sense that our own
father is lying to us. { } Whenever you have a culture completely run by gross
capitalism, all of the gods are driven away. Well, then what?
What does that mean when those gods are not present?

Later Bly says…

“When I talk about the world being mad, I tell people,
“You won’t believe how bad television is going to be in ten years.
You’re going to literally have to protect your children from it.”
And we’re not going to be able to change that. The only thing
we can do is recognize that it’s mad, and reach inside ourselves
and bring out our own genuine madness in the form of art,
and then teach our children to do the same.”

In 68, a corporate owned magazine, and hardly a socialist magazine, thought it reasonable to ask Genet or Burroughs to discuss a political convention. I mean even Norman Mailer wrote intelligently on Kennedy for Esquire, and Mailer isn’t exactly Gramsci. My point is, or I hope my first point, is that it is not always crucial to demand ideological analysis. For art’s radical nature is outside ideology. Just speaking from a radical perspective, an anti bourgeois perspective, can be enough. But in 1968 the U.S. still had artists. What artist could you invite today? What public intellectual? The Guardian picked Sarah Churchwell (who again, I’d never heard of) who wrote…

“The Obamas changed the rules for what it means to inhabit the White House, and not only because they were the first black family to do so. They were also the first modern family to do so, to be informal yet classy, upright yet kind, and, most important, themselves.”

That’s it then, just be yourself. But the lesson here, if there is one, is that the radical tradition in American life has been rendered invisible. Just as the history of labor and unions and strikes has been erased. There are plenty of great artists out there, actually. Tons of intellectuals, but they aren’t invited by corporate media. Was anyone from Black Agenda Report asked to comment? Or from, well, CounterPunch? Was Harry Belefonte asked? The manufacturing of an image of a culture, rather than an actual culture, is what organs of disinformation such as The Guardian are in the business of doing. And this is also what Hollywood does, of course. Look at the stuff that gets on in the flagship theatres of the U.S. What is the season at Lincoln Center? Does it matter? No, it really doesn’t. And running across all of this discussion is the question of class. In fact, that may be the most important aspect in all of this. The working class voice is erased. In total. And this is hugely significant. Even fifty years ago the stages of American theatres were filled by work from playwrights who did not have MFAs. Novels were written by criminals and outsiders. This is no less true, really, in the U.K. From Brendan Behan to Martin Amis is the road travelled. Now of course one can site exceptions to this, I think anyway. There are always celebrity outsiders, branded renegades. Usually this takes the form of a confessional. My time on oxycodone while writing Sit Coms. I was a teenage prostitute and was addicted to anti depressants, but then I found a higher power. But god forbid you express condemnation of the bourgeoisie. For that is the greatest of all crimes.

When I worked in Hollywood, I felt the class estrangement acutely. But I did get work and had some modest success. And I remember when a major cable producer of the era asked me, during a pitch meeting, for the names of writers I thought would be good to employ for an anthology series they wanted to put together. I said, well, Iceberg Slim (Robert Beck) and John Rechy. A silence fell on the room. I was very very naive. Hollywood today seems infested with lawyers, former political interns, and business school graduates. Most from Ivy league schools. And the world that is manufactured is one that reflects their class. And the effect this has had is to alienate the younger artists who do not come from affluent backgrounds. It has also normalized the a vision of the world that belongs to perhaps ten per cent of the population. The rest are strangers in their own land. Strangers to the official sanctioned culture. And in that sense, Hollywood has sort of merged with Madison Avenue.

The class divide is being starkly revealed this last few months. And it has also served to put in stark relief the real impetus of U.S. foreign policy (and to domestic policy, too, only not as drastically). After WW2 and the formation of the CIA, the shaping of a political intention was being finalized. This came from George Kennan and the Dulles Brothers. And Henry Kissinger was the premier exemplar of this thinking. Kissinger, who supported the Shah and his death squads in Iran, and chaired the Presidential Commission on Central America in the 1980s,(employing Ollie North) and which unleashed an unimaginable terror on that region, and who orchestrated the Pinochet coup in Chile to protect ITT and, as a side bar, to teach a lesson to any government not readily obedient. This has been the seamless and never changing foreign policy of the U.S. for seventy some years. Punish the disobedient (meaning anything smacking of socialism or any nation even the tiniest bit resistant to Western business) and to continue toward global hegemony, and at the same time perpetuating conflicts which make both defense contractors and giant service providers such as Halliburton a lot of money.

The U.S. has cultivated compliant nations (Australia, the U.K. most notably) to enforce its policy (think East Timor, Iraq and Libya et al) and now owns a complient organization with international standing: NATO. And NATO serves as a legitimizing international (sic) institution of pacification.

John Pilger writes…

“The other day, an Indonesian friend took me to his primary school where, in October 1965, his teacher was beaten to death, suspected of being a communist.
The murder was typical of the slaughter of more than a million people: teachers, students, civil servants, peasants. Described by the CIA as “one of the worst mass murders of the 20th century”, it brought to power the dictator Suharto, the west’s man. Within a year of the bloodbath, Indonesia’s economy was redesigned in America, giving western capital access to vast mineral wealth, markets and cheap labour. “

Stephan Gowans writes…

“The United States had waged a long war against Syria from the very moment the country’s fiercely independent Arab nationalist movement came to power in 1963. Assad and his father Hafez al-Assad were committed to that movement. Washington sought to purge Arab nationalist influence from the Syrian state and the Arab world more broadly. It was a threat to Washington’s agenda of establishing global primacy and promoting business-friendly investment climates for US banks, investors and corporations throughout the world.”

The rise of the neo cons, which rather officially began with Project for a New American Century (just prior to Bush Jr’s presidency) was really just an extension of that original plan for global domination. At that time this was articulated by a seething nearly hysterical hatred of the Soviet Union. And the structural aspect of this remains in place with today’s rabid and massive propaganda campaign directed at Putin. And indeed even on the left one hears the echoes of a Russophobic sensibility. It is as if these faux leftists can not allow a critique of U.S. imperialism (in Syria for example) without off handedly smearing Russia, too. One need only look at who is surrounding whom with military bases. And the same holds true, with slightly less hysteria, for China.

In 2012 Ed Herman, speaking in a radio interview, said

“…humanitarian intervention {has} been used strictly for the interests of the United States and other Western powers and Israel. Strictly. So there’s no intervention in Saudi Arabia or Israel or Yemen or Bahrain. There was none in Egypt…And there was Egypt, here you had a miserable dictator for decades, and then you had an uprising where a lot of people were being beaten and killed in the streets, and you never had Mrs. Clinton ever asking for any application of humanitarian intervention. Not once. Never. They’re getting away with the most unbelievable double standard imaginable.”

This is, none of it, new. And yet, despite the obvious record of Obama in furthering exactly this world vision, the liberal organs of *real* news continue to paint their revisionist narratives of American heroism and goodness. And it is breathtaking in a way to read this new class of quisling artist, the court eunuchs for the Democratic Party establishment. And Obama’s apparent anger and petulance belies, certainly, descriptions such as ‘preternaturally calm’, and ‘dignified’. But there is a thread of liberal guilt running through this as well. Obama’s race (and his perfect wife and kids — and one longs for Ron Reagan Jr or to go back to James Madison’s son John, and shit, even the Bush girls might be a relief from these Stepford children.) is the psychological glue for a visibly excessive adoration. And this is a white liberal class that is haunted, I suspect, in their heart of hearts, by the knowledge of their own privilege and that that privilege has resulted in oceans of blood, and the knowledge, if they were ever to question themselves, that they would sell out anyone to retain that privilege. They love Obama and Obama is black, therefore…etc.

As Ajamu Baraka noted

“In the face of the Neo-McCarthyism represented by this legislation and the many other repressive moves of the Obama administration to curtail speech and control information — from the increased surveillance of the public to the use of the espionage act to prosecute journalists and whistleblowers — one would reasonably assume that forces on the left would vigorously oppose the normalization of authoritarianism, especially in this period of heightened concerns about neo-fascism.
Unfortunately, the petit-bourgeois “latte left” along with their liberal allies have been in full collaboration with the state for the past eight years, with the predictable result that no such alarm was issued, nor has any critique or even debate been forthcoming.”

The openly Imperialist U.S. state has tortured, illegally kidnapped, and simply murdered both leaders of sovereign states as well as countless innocent victims. That Samantha Power’s motorcade in rushing through a village in Cameroon happened to run over a ten year old boy, and didn’t stop — this barely made the evening news at all (but hey, they did send the family fifteen hundred dollars by way of an apology). They have acted covertly to destabilize governments and have manufactured enemies at a rate that is staggering to contemplate. Obama’s tight relationship with the most odious autocratic and murderous country on earth, Saudi Arabia, speaks to the cynicism of the political elite.

And yet, the artistic communities by and large continue to focus on identity issues (once they have attended to their career moves and spoken with their agents), most of which affect their own class. The dire suffering of the poor makes good voyeuristic source material, but the segregation of classes is enforced zealously. Token exceptions are simply that.

How is it possible to become so alarmed by Trump, while supporting Democrats? Those millions on the street protesting the looming invasion of Iraq must have noticed that every single Democrat in government voted FOR the invasion (save for the honorable Barbara Lee). And yet here they all are wringing their hands in dismay that Hillary lost. Here they are constantly repeating the litanies of Trump evil and never noticing the crimes of earlier democratic presidents and administrations. So, yes Trump’s appointments are awful. But I refuse to even dig into that until a discussion of Obama’s appointments are dissected. First came Rahm Emanuel, former memeber of the IDF, all around thug and bully and lover of never ending war to help expand Israeli power. Penny Pritzker, heiress and elitist and friend to the 1%, or Robert Rubin or Tim Geithner (!!!) or Tom Daschle, the senator from Citibank. I’m just scratching the surface. Joe Biden and Hillary Clinton. The point is that I am coming to feel that almost any focus on Trump feels misplaced. Certainly now it does since he isn’t even president yet. The deconstruction of liberal Obama is far from complete and the propaganda apparatus is working overtime to rewrite not just recent history, but the present. And the anti Russian propaganda is so absurd, so transparent, that this feels far more important than the predictable stupidity of Trump. I mean Obama is massing troops near the Russian border. Obama is ramping up the building of purpose built navel bases near China. Obama is still looking to prosecute Chelsea Manning and every other whistleblower. And he is still signing draconian legislation to curb free speech and institutionalize legitimacy for the new McCarthyism. Talking about Trump is a form of forgetting. I can’t do it. And if there is an easier target for parody or even non parodic narrative than Donald Trump, I havent met them. And easy is never an act of rigorous self examination.

Thomas Bates writes, discussing Gramsci…

“Gramsci retained a skepticism towards these alienated fils de bourgeois, a
skepticism which was not, however, mere prejudice, but was an historical
judgment informed by the experience of the Italian labor movement. How was
one to explain the passing of entire groups of left-wing intellectuals into the
enemy camp? More precisely, how was one to explain the phenomena of socialists
entering into bourgeois governments and of revolutionary syndicalists
entering into the nationalist and then the Fascist movement? Gramsci viewed
these puzzling events as the continuation on a mass scale of the ‘trasformismo’
of the nineteenth century. The “generation gap” within the ruling class had resulted
in a large influx of bourgeois youth into the popular movements, especially
during the turbulent decade of the 1890’s. But in the war-induced crisis
of the Italian State in the early twentieth century, these prodigal children
returned to the fold…”

And Gramsci adds..

“The bourgeoisie fails to educate its youth (struggle of generations). The youth
allow themselves to be culturally attracted by the workers, and right away
they … try to take control of them (in their “unconscious” desire to impose
the hegemony of their own class on the people), but during historical crises
they return to the fold.”

White affluent self identifying liberals believe they are the decision makers. That is their destiny. They believe that. One must build a new culture. Not endlessly ratify a decrepit and atrophying one. One must stop perceiving *liberals* as being on the side of change. For they are not. Guy Debord began his situationist masterpiece (1967) by quoting Feuerbach, Preface to the second edition of The Essence of Christianity:

“But certainly for the present age, which prefers the sign to the thing signified, the copy to the original, representation to reality, the appearance to the essence… illusion only is sacred, truth profane. Nay, sacredness is held to be enhanced in proportion as truth decreases and illusion increases, so that the highest degree of illusion comes to be the highest degree of sacredness. “

 

John Steppling is an original founding member of the Padua Hills Playwrights Festival, a two-time NEA recipient, Rockefeller Fellow in theatre, and PEN-West winner for playwriting. Plays produced in LA, NYC, SF, Louisville, and at universities across the US, as well in Warsaw, Lodz, Paris, London and Krakow. Taught screenwriting and curated the cinematheque for five years at the Polish National Film School in Lodz, Poland. A collection of plays, Sea of Cortez & Other Plays was published in 1999, and his book on aesthetics, Aesthetic Resistance and Dis-Interest was published this year by Mimesis International.

Washington’s Global Economic Wars

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By James Petras

Source: Axis of Logic

Introduction
During most of the past two decades Washington has aggressively launched military and economic wars against at least nine countries, either directly or through its military aid to regional allies and proxies.  US air and ground troops have bombed or invaded Afghanistan, Iraq, Pakistan, Libya, Somalia, Syria, Yemen and Lebanon.

More recently Washington has escalated its global economic war against major economic rivals as well as against weaker countries.  The US no longer confines its aggressive impulses to peripheral economic countries in the Middle East, Latin America and Southern Asia:  It has declared trade wars against world powers in Asia, Eastern and Central Europe and the Gulf states.

The targets of the US economic aggression include economic powerhouses like Russia, China, Germany, Iran and Saudi Arabia, as well as Syria, Yemen, Venezuela, Cuba and the Donbas region of Ukraine.

There is an increasingly thinner distinction between military and economic warfare, as the US has frequently moved from one to the other, particularly when economic aggression has not resulted in ‘regime change’ – as in the case of the sanctions campaign against Iraq leading up to the devastating invasion and destruction.

In this essay, we propose to examine the strategies and tactics underlying Washington’s economic warfare, their successes and failures, and the political and economic consequences to target nations and to world stability.

Washington’s Economic Warfare and Global Power
The US has used different tactical weapons as it pursues its economic campaigns against targeted adversaries and even against its long-time allies.

Two supposed allies, Germany and Saudi Arabia, have been attacked by the Obama Administration and US Congress via ‘legal’ manipulations aimed at their financial systems and overseas holdings.  This level of aggression against sovereign powers is remarkable and reckless.  In 2016 the US Justice Department slapped a $14 billion dollar penalty on Germany’s leading international bank, Deutsche Bank, throwing the German stock market into chaos, driving the bank’s shares down 40% and destabilizing  Germany’s financial system.  This unprecedented attack on an ally’s major bank was in direct retaliation for Germany’s support of the European Commission’s $13 billion tax levy against the US-tax evading Apple Corporation for its notorious financial shenanigans in Ireland.  German political and business leaders immediately dismissed Washington’s legalistic rhetoric for what it was: the Obama Administration’s retaliation in order to protect America’s tax evading and money laundering multinationals.

The chairman of the German parliament’s economic committee stated that the gross US attempt to extort Deutsche Bank had  all the elements of an economic war.   He noted that Washington had a “long tradition of using every available opportunity to wage what amounted to a  trade war if it benefits their own economy” and the “extortionate damages claim” against Deutsche Bank were a punitive example.  US economic sanctions against some of Germany’s major trade partners, like Russia, China and Iran, constitute another tactic to undermine Germany’s huge export economy.  Ironically, Germany is still considered “a valued ally” when it comes to the US wars against Syria, Afghanistan and Iraq, which have driven millions of refugees to Europe creating havoc with Germany’s political, economic and social system and threatening to overthrow the government of ‘ally’ Angela Merkel.

The US Congress launched an economic-judicial war against its closest ally in the Gulf region when it approved legislation granting US victims of Islamist terrorism, especially related to the attacks on September 11, 2001, the right  to sue the government of Saudi Arabia and seize its overseas assets.  This included the Kingdom’s immense ‘sovereign funds’ and constitutes an arbitrary and blatant violation of Saudi sovereignty.  This opens the Pandora’s Box of economic warfare by allowing victims to sue any government for sponsoring terrorism, including the United States!   Saudi leaders immediately reacted by threatening to withdraw billions of dollars of assets in US Treasuries and investments.

The US economic sanctions against Russia are designed to strengthen its stranglehold on the economies of Europe which rely on trade with Russia.  These have especially weakened German and Polish trade relations with Russia, a major market for German industrial exports and Polish agriculture products.   Originally, the US-imposed economic sanctions against Moscow were supposed to harm Russian consumers, provoke political unrest and lead to ‘regime change’.   In reality, the unrest it provoked has been mainly among European exporters, whose contracts with Russia were shredded and billions of Euros were lost.  Furthermore, the political and diplomatic climate between Europe and Russia has deteriorated while Washington has ‘pivoted’ toward a more militaristic approach.

Results in Asia have been even more questionable:  Washington’s economic campaign against China has moved awkwardly in two directions:  Prejudicial trade deals with Asian-Pacific countries and a growing US military encirclement of China’s maritime trade routes.

The Obama regime dispatched Treasury Secretary Jack Lew to promote the Trans- Pacific Partnership (TPP) among a dozen regional governments, which would blatantly exclude China, Asia’s largest economic power.   In a slap to the outgoing Obama Administration, the US Congress rejected his showpiece economic weapon against China, the TPP.

Meanwhile, Obama ‘encouraged’ his erstwhile ‘allies’ in the Philippines and Vietnam to sue China for maritime violations over the disputed ‘Spratly Islands’ before the Permanent Court of Arbitration.   Japan and Australia signed military pacts and base agreements with the Pentagon aimed at disrupting China’s trade routes.  Obama’s so-called ‘Pivot to Asia’ is a transparent campaign to block China from its markets and trading partners in Southeast Asia and Pacific countries of Latin American.  Washington’s flagrant economic warfare resulted in slapping harsh import tariffs on Chinese industrial exports, especially steel and tires.  The US also sent a ‘beefed up’ air and sea armada for ‘joint exercises’ along China’s regional trade routes and its access to critical Persian Gulf oil, setting off a ‘war of tension’.

In response to Washington’s ham-fisted aggression, the Chinese government deftly rolled out the Asian Infrastructure Investment Bank (AIIB) with over fifty countries eagerly signing on for lucrative trade and investment deals with Beijing.  The AIIB’s startling success does not bode well for Obama’s ‘Pivot to Pacific Hegemony’.

The so-called US-EU-Iran accord did not end Washington’s trade war against Teheran.  Despite Iran’s agreement to dismantle its peaceful uranium enrichment and nuclear research programs, Washington has blocked  investors and tried to undermine trade relations, while still holding billions of dollars of Iranian state assets, frozen since the overthrow of the Shah in  1979.  Nevertheless, a German trade mission signed on a three billion trade agreement with Iran in early October 2016 and called on the US to fulfill its side of the agreement with Teheran – so far to no avail.

The US stands alone in sending its nuclear naval armada to the Persian Gulf and threatens commercial relations. Even the Kingdom of Saudi Arabia, the longstanding enemy of the Iranian Islamic Republic, has agreed to a cooperative oil production arrangement at a recent OPEC meeting.

Washington’s declaration of economic warfare against two of its most strategic powerful allies, Germany and Saudi Arabia and three rising competitor world powers, has eroded US economic competitiveness, undermined its access to lucrative markets and increased its reliance on aggressive military strategies over diplomacy.

What is striking and perplexing about Washington’s style of economic warfare is how costly this has been for the US economy and for US allies, with so little concrete benefit.

US oil companies have lost billions in joint exploitation deals with Russia because of Obama’s sanctions.  US bankers, agro-exporters, high-tech companies are missing out on lucrative sales just to ‘punish’ Russia over the incredibly corrupt and bankrupt US coup regime in Ukraine.

US multi-national corporations, especially those involved in Pacific Coast transport and shipyards, Silicon Valley high tech industry and Washington State’s agro-export producers are threatened by the US trade agreements that exclude China.

Iran’s billion dollar market is looking for everything from commercial airplanes to mining machinery.  Huge trade deals have has been lost to US companies because Obama continues to impose de facto sanctions.  Meanwhile, European and Asian competitors are signing contracts.

Despite Washington’s dependence on German technical knowhow and Saudi petro-dollar investments as key to its global ambitions, Obama’s irrational policies continue to undermine US trade.

Washington has engaged in economic warfare against ‘lesser economic powers’ that nevertheless play significant political roles in their regions.  The US retains the economic boycott of Cuba; it wages economic aggression against Venezuela and imposes economic sanctions against Syria, Yemen and the Donbas region in eastern Ukraine.  While these countries are not costly in terms of economic loss to US business interests, they exercise significant political and ideological influence in their regions, which undermine US ambitions.

Conclusion
Washington’s resort to economic warfare complements its military fueled empire building.

But economic and military warfare are losing propositions.  While the US may extract a few billion dollars from Deutsch Bank, it will have lost much more in long-term, large-scale relations with German industrialists, politicians and financiers.  This is critical because Germany plays the key role in shaping economic policy in the European Union.  The practice of US multi-national corporations seeking off-shore tax havens in the EU may come to a grinding halt when the European Commission finishes its current investigations.  The Germans may not be too sympathetic to their American competitors.

Obama’s Trans-Pacific Partnership (TPP) has not only collapse, it has compelled China to open new avenues for trade and cooperation with Asian-Pacific nations – exactly the opposite of its original goal of isolating Beijing.  China’s Asia Infrastructure and Investment Bank (AIIB) has attracted 4 time more participants than Washington’s TPP and massive infrastructure projects are being financed to further bind ASEAN countries to China.  China’s economic growth at 6.7% more than three times that of the US at 2%.  Worse, for the Obama Administration, Washington has alienated its historically most reliable allies, as China, deepens economic ties and cooperation agreements with Thailand, Philippines, Pakistan, Cambodia and Laos.

Iran, despite US sanctions, is gaining markets and trade with Germany, Russia, China and the EU.

The Saudi-US conflict has yet to play-out but any escalation of law suits against the kingdom will result in the flight of hundreds of billions of investment dollars from the US.

In effect, Obama’s campaign of economic warfare may lead to the infinitely more costly military warfare and the massive loss of jobs and profits for the US economy.   Washington is increasingly isolated. The only allies supporting its campaign of economic sanctions are second and third rate powers, like Poland and current corrupt parasites in Ukraine.  As long as the Poles and Ukrainians can ‘mooch’ off of the IMF and grab EU and US ‘loans’, they will cheerlead Obama’s charge against Russia.  Israel, as long as it can gobble up an additional $38 billion dollars in ‘aid’ from Washington, remains  the biggest advocate for war against Iran.

Washington spends billions of US tax-payer dollars on its military bases in Japan, Philippines and Australia to maintain its hegemony in the Asia-Pacific region.   Its allies, though, are salivating at the prospect for greater trade and infrastructure investment  deals with China.

Economic warfare doesn’t work for the Washington because the US economy cannot compete, especially when it attacks its own allies and traditional partners.  Its regional allies are keen to join the ‘forbidden’ markets and share in major investment projects funded by China.  Asian leaders increasingly view Washington, with its ‘pivot to militarism’ as politically unreliable, unstable and dangerous.  After the Philippine government economic mission to China, expect more to ‘jump ship’.

Economic warfare against declared adversaries can only succeed if the US is committed to free trade with its allies, ends punitive sanctions and stops pushing for exclusive trade treaties that undermine its allies’ economies.   Furthermore, Washington should stop catering to the whims of special domestic interests.  Absent these changes, its losing campaign of economic warfare can only turn into military warfare – a prospect devastating to the US economy and to world peace.

 

Please note James Petras’s new collection of essays with Clarity Press:
THE END OF THE REPUBLIC AND THE DELUSION OF EMPIRE

ISBN: 978-0-9972870-5-9
$24.95 / 252 pp. / 2016

The Mainstream Has Failed

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By Charles Hugh Smith

Source: Of Two Minds

The good news is there is a way to avoid failure and stagnation: avoid the mainstream like the plague.

The mainstream became mainstream because it worked: the mainstream advice to “go to college and you’ll get a good job” worked, the mainstream financial plan of buying a house to build equity to pass on to your children worked, the mainstream of government regulation worked to the public’s advantage at modest cost to taxpayers and the mainstream media, despite being cozy with government agencies such as the C.I.A. and operating as a profit machine for the families that owned the newspapers, radio stations, etc., functioned as a basically honest broker of information and reporting.

Now, the mainstream has failed. Mainstream career advice now leads to crushing debts and career stagnation, mainstream financial planning generates high risks, mainstream government regulations are costly and burdensome, and the mainstream media is little more than a corporate-owned mouthpiece of propaganda and distributor of infotainment that is sold as “news.”

Does anyone actually believe the mainstream political process isn’t broken? Those who claim it isn’t broken are either well-paid shills just doing their job or they’re delusional.

The mainstream American diet now leads to chronic disease and early death.Supersized portions, large amounts of sugar and/or salt in virtually every packaged food item, heavy doses of low-quality fats in almost all mainstream fast foods–these have become mainstream at a very high cost in diminished health and reduced years of life free of chronic disease and pain.

The mainstream level of fitness contributes to chronic disease and early death.The mainstream lifestyle is one in which people passively watch a few daredevils pursue extreme sports on a variety of digital screens, passively “consume” music rather than learning to play music themselves, passively consume “news” rather than being engaged in community activities that make news, and so on.

The mainstream healthcare system is structured so it is incapable of promoting health. As my longtime friend GFB recently asked, “Who is happy with the current healthcare system?” Certainly not the doctors and nurses or the patients. Perhaps Big Pharma is happy as a result of their enormous profits (more of which is spent on marketing the latest marginally useful and often dangerous drug than on R&D), but even Big Pharma has legitimate complaints about the cost and time required to get a potentially life-changing drug (such as immunotherapy drugs) through the pipeline.

But the real problem is the soaring costs of the system will eventually collapse the entire economy. The same can be said of the soaring costs of increasingly marginal higher education, the soaring costs of increasingly marginal weapons systems, and so on.

medical-costs6-16a

The mainstream healthcare system is incapable of promoting health or restraining costs:

bankrupt-healthcare

The other problem with the mainstream is that any attempt to structurally reform these broken systems will trigger collapse. The mainstream systems are now so fragile that any significant change will cause them to implode. I explain why in my book Why Our Status Quo Failed and Is Beyond Reform.

The good news is there is a way to avoid failure and stagnation: avoid the mainstream like the plague. Stop eating packaged and fast foods, eat restaurant meals only occasionally, prepare 90% of your meals at home with real ingredients, including lots of fresh vegetables. Walk at least one mile/2 kilometers a day, start bicycling instead of driving (where possible), start doing yoga, tai chi, etc. every day, turn any 6-foot square floor area into your home gym–get lean.

Stop watching sports and start doing sports (appropriate to your age and climate, of course).

As for fashioning a sustainable career–don’t count on a college degree to work some sort of magic. I describe a more proactive approach to forging a sustainable career in my book Get a Job, Build a Real Career and Defy a Bewildering Economy.

Don’t accept “standards of care” that include addictive pain-killers and powerful meds that require another six meds with their own side-effects to counter the side-effects of the first med. Do you own research, get a second opinion. Discover what you can do to help heal yourself first.

Stop “consuming” mainstream media except in small, limited portions and consume even these portions with a skeptical eye and ear for propaganda and rigged numbers that supports failed mainstream narratives.

We are what we do every day. Step out of the mainstream and stay out of the mainstream and opportunities that are unavailable to those who passively accept the mainstream as “all there is” will emerge.

As Douglas MacArthur observed, “There is no security on this earth; there is only opportunity.”

If you’re interested in avoiding the mainstream of failure and stagnation, please consider these quotes drawn from my extensive list of Aphorisms:

“We are what we repeatedly do.” (Aristotle)

“Do the thing and you shall have the power.” (Ralph Waldo Emerson)

“Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction.” (E.F. Schumacher)

“He who will not risk cannot win.” (John Paul Jones)

And the Beat Goes On: Mega-rich get richer. Society Crumbles

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By Robert De Filippis

(OpEdNews.com)

While most of us have been taking our kids to Little League games, betting on the Super Bowl, taking an occasional vacation and waiting for the American Dream to become a reality, we haven’t noticed something important happening all around us. Society has been crumbling at the edges for the last several decades.

This is not to say that lots of human beings haven’t already experienced the early stages of this societal disintegration. But they tend to be the people at the margins. People without a voice. People whose interests are not understood, let alone represented in the great debates of our times.

Think of the Mideast. Think ISIS here. Think of terrorism. Terrorists don’t attack us because of our freedoms. They attack out of desperation. Out of a frustration that comes with no future, and a feeling of impotence in the face of the continued economic violence committed in the name of corporate profits and greed. Corporations protected by the most powerful military in the history of the world. Ours!

Is it any mystery why we have over six hundred military installations in other countries around the world? We’re not under threat from anyone, but our corporation’s interests in those countries must be protected while they rape them of their labor and natural resources.

History is written by the victors and the popular public narratives are circumscribed by those whose interests they serve and not those who suffer. At the core of this phenomenon is complicity. A subconscious complicity made up of an ultra-resistant trifecta of human thinking — greed, ignorance, and certainty.

Greed now normalized has made the great American dream indistinguishable from having basic financial security to making everyone a billionaire-in-waiting. An inability to distinguish fact from opinion leads the wave of ignorance that engulfs us. Our arrogance disguised as fervent patriotism defends our ignorance and allows us to reject the knowledge we need to save ourselves.

Our generalized confusion of what constitutes a fact allows an individual’s certainty to form a resistance similar to the bacterial infections that threaten to make modern antibiotics useless. It continues to evolve. “If I can’t figure out who’s lying, I’ll believe the one who confirms my point of view. Of that I’m certain.”

Until we learn that having our beliefs validated by a media being paid to manipulate us for political gain, society will continue to disintegrate for larger and larger groups of people.

Seems like a stretch, I know. But think about how we’ve become polarized. How we are so sure of our positions that we just can’t have a conversation with those from the other side. The very conversation we need to have to figure out how we’re being duped. Then think about how our politicians use the greed, ignorance and certainty on both sides to work us up into an emotional lather. And finally, how they ignore our interests while they do the bidding of their owners keeping us distracted with our petty differences with each other.

This will come to an end. There will either be a major social revolution at the least or outright raw violence at the worst. As the authority structures lose the willing conformance of the masses, all that’s left to police them is force. And at some point – like is beginning now — the response will be violence in return. Think of the proliferation of guns in America. Think of people shooting police.

It doesn’t take much discernment to see that corporate structures are highly sophisticated mechanisms for funneling money upwards. That government collusion protects the interests of the owners of capital at the expense of the employees, customers, the general public. And the military protects their international interests.

The largest wealth producer in the world is the financial industry that simply makes money from money and produces nothing. It serves no interests but its own. Yes, some of us fortunate to have salvaged what’s left of our life savings after repeated financial crashes still enjoy the crumbs from the tables of the elite. I do mean crumbs.

Do the math. At the current rate of the upward movement of wealth, there is no other outcome but final disaster. The top 1/10th of 1 percent — not 1 percent — but 1/10th of 1 percent in America owns almost as much wealth as the bottom 90 percent in America, and it gets worse as you leave our shores.

At this rate, the world will eventually consist of gated enclaves of the mega-wealthy guarded by elite corps of paid mercenaries surrounded by billions of impoverished people.

This trajectory has increased dramatically for the last several decades. More and more of the world’s wealth is pouring into the coffers of the mega-rich. This is a zero sum game. When the masses have no wealth left, the game will be over. No matter how powerful the wealthy are, no matter how much wealth they possess, the game will be over.

For Purely Technical Reasons

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By Dmitry Orlov

Source: Club Orlov

It is tempting for us to think that our technological choices—whether we choose to live in a city, a suburb or out in the country; whether we want to drive a pick-up truck, a gasoline-electric hybrid or ride a bicycle; whether we take a train, drive long distances or fly—are determined by our tastes. We may flatter ourselves that we are in control, and that our choices are reflective of our enlightened, environmentally conscious values. This view rests on a foundation of circular reasoning: we behave in enlightened ways because we are enlightened, and we are enlightened because, to wit, we behave in enlightened ways. As to why what we consider enlightened is in fact enlightened rather than a question of possibly questionable personal taste—that is not to be discussed: de gustibus non est disputandum.

But there is an alternative viewpoint, which seems more realistic in many ways, because it rests on a foundation of physical, technical specifics rather than fickle and arbitrary consumer preference, whim or taste. From this viewpoint, our technology and associated lifestyle choices are dictated by the technical requirements of their underlying technologies, both physical (the operation of the energy industry, the transportation industry, etc.) and political (the operation of political machines that segregate society by net worth and income, relegating wage-earners to a global disenfranchised underclass).

A few years ago I found out that I needed to replace the diesel engine on my boat (the old one blew up definitively) and looked at a number of options, one of which was to replace it with an electric motor and a large bank of batteries. The electric option was touted as being quiet, non-polluting, and having just enough range to get in and out of the marina and to get back to dock if the wind died during a typical daysail. It turned out to be more than twice as expensive as a replacement diesel engine. As to what one might do to take such a boat any great distance (that involves many hours of motoring) the solution is to… add a diesel engine hooked up to a very large alternator, at triple the cost of just replacing the diesel. And so I just replaced the diesel.

Diesel engines have a lot of positive qualities: they can run continuously for tens of thousands of hours; they can be rebuilt many times just by replacing the bearings, the cylinder sleeves, the piston rings and the valves; they are exceptionally reliable; the fuel they use is energy-dense. For these reasons, they are found throughout freight and construction industries and are used for small-scale power generation. They can be very large: the larger ships have engines that are as big as houses, with ladders welded to their cylinder walls, so that servicemen can climb down into them to service them after the cylinder head and the piston assembly are pulled out using an overhead shop crane. Small diesel engines make a lot less sense, and the silliest of them are the ones found on small yachts. There are many aspects of their design that make them silly, but there is also an overriding reason: they use the wrong fuel.

You see, diesel is a precious commodity, used in the transportation industry (by trucks, locomotives and ships), and in construction equipment, with no alternative that is feasible. A cousin of diesel fuel is jet fuel—another petroleum distillate—that is used to power jet engines, again, with no alternative that is feasible. And then there is a fuel that is only really useful as a small engine fuel: gasoline, that is. Gasoline engines beyond a certain size become much more trouble than they are worth.

Each barrel of crude oil can be distilled and refined into a certain amount of diesel and jet fuel, a certain amount of gasoline, some tar and some far less useful substances such as naphtha. The diesel is spoken for, because it literally moves the world; but if enough small engines cannot be found to burn all the gasoline that is produced, it becomes a waste product and has to be flared off at the oil refinery, at a loss. Indeed, prior to Henry Ford coming up with the brilliant plan to build cars cheap enough for his workers to afford, gasoline was dumped into rivers just to get rid of it, because while everyone burned kerosene (a distillate, like jet fuel and diesel) in lamps, cars remained playthings of the rich, and there simply wasn’t a market for any great quantities of gasoline.

Therefore, it became very important to find ways to sell gasoline, by finding enough uses for it, no matter how superfluous they happened to be. And although some people think that the private automobile is a symbol of luxury and freedom and feel the thrill of the open road, the reason they think that is because these ideas were implanted in their heads by the people who were tasked with finding a market for gasoline. Alongside cars, great effort was put into marketing all sorts of other small engines: for lawn mowers, jet skis, motorcycles, ATVs, boat outboard motors… The only semi-industrial use of gasoline is in chainsaws, small generators and air compressors, service and delivery vehicles, and outboard engines.

And so people were sold on the idea of driving their own car, whether they needed to or not, and spending lots of time stuck in traffic—all so that they would pay for gasoline. By causing all that excess traffic congestion, they also created the need to widen roads and highways, generating demand for another borderline useless petroleum product: road tar. And since there was a problem with cramming all these cars into cities (where cars are generally not needed if the cities are laid out using proper urban design, with sufficient numbers of tram, light rail and subway lines, etc.) the solution was to move everybody out to the suburbs. And so the reason half of the US population now lives in suburbia and drives has nothing to do with their needs, and everything to do with the need to sell them gasoline.

Some people may react negatively to the idea that their suburban castle and their magic chariot are all just part of a plan to make them spend much of their life paying for the right to dispose of toxic waste in unsafe ways. Rest assured, their preprogrammed negative reaction is part of the plan. Every effort has been made to program people to think that this waste disposal job—carried out at one’s own expense—is, in fact, something that should be considered a sign of success. The most efficient way to motivate a slave to perform is to convince him that he is free. To this end, driving is celebrated in music and film and portrayed as a way of life. Calling it what it is—being a slave to a machine—is bound to cause cognitive dissonance, all the more so because driving a lot destroys one’s mind: in the immortal words of a character from the movie Repo Man, ”The more you drive, the less intelligent you become.” In this respect, most of the people living in the US are far past the point of no return, and it is pointless to attempt to impart to them any ideas that are discordant with the dead-end lifestyle into which they have been unconsciously coerced.

Getting back to electric vehicles, such as what my boat would have ended up if I were gullible and made of money: they are obviously a defective idea. Their range is limited, they take longer to charge than it takes to fill a gas tank, and they use expensive and dangerous lithium-ion batteries that need periodic replacement. There is not enough lithium available to continue making batteries for laptops and smartphones (which periodically burst into flames), never mind providing for a giant expansion of battery-building to support lots of electric cars. Perhaps most importantly, they shrink the market for gasoline. So, what’s the reason behind the push?

It certainly isn’t part of any particular effort to electrify transportation in general, because no electric solution exists for ships or planes, and electrifying rail freight is an impossibly expensive proposition. It certainly isn’t part of an effort to cut greenhouse gas emissions, because most of the ways electricity is currently generated is by burning coal and natural gas—and will be, while supplies last, because electricity is hard to store, and no matter how many solar arrays and wind farms are installed something will be needed to power the electric grid on overcast, windless days.

No, the push for electric cars is motivated by a different sort of technology—political technology. You see, the oil age is drawing to a close. Last year the oil companies only discovered 1 barrel of oil for every 10 barrels they produced; at the turn of the century it was closer to 1 for every 4. At the same time, most of the easy-to-get-at oil has already been produced, and now it takes 1 barrel’s worth of energy to produce something like 10 barrels, whereas at the dawn of the age of oil it was closer to 1 for every 100 barrels. Such a low level of net energy production is turning out to be insufficient to maintain an industrial civilization, and as a result economic growth has largely stalled out. And although large investments in oil production have succeeded in keeping large volumes of oil flowing, for now, this is turning out to be an ineffective way to invest money, with many energy companies, once so profitable, now unable to pay the interest on their debt. And even though constant injections of free money are currently keeping developed economies from cratering into bankruptcy, it has been clear for some time that each additional dollar of debt produces significantly less than a dollar’s worth of economic growth. Growing debt within a growing economy can be very nice; but if the economy isn’t growing as fast, it’s fatal.

As the oil age winds down, personal transportation, in the form of the automobile, is bound to once again become a plaything of the very rich. But then, when it comes to electric cars, it already is! And I don’t mean Tesla: the most commonly used electric vehicle worldwide is the golf cart. And who uses golf carts? Members of golf clubs; guests at resorts; residents of posh gated communities; employees at corporate and academic campuses… And what do all these people have in common? They are all members of the salaried elite; they are definitely not members of the wage-earning class. To them, the electric car offers a way of preserving a semblance of the status quo for themselves while setting themselves apart (in their own minds) from all of the gasoline-burning riffraff. Let the great unwashed in the flyover states, with their pickup trucks complete with gun racks, burn what’s left of the gasoline while overdosing on synthetic opiates while the salaried elites and individuals of high net worth, ensconced in their campuses and gated communities, will create a different future for themselves, replete with wind turbines, solar panels and electric cars (until they all get shot by all those they have disenfranchised).

Neoliberalism and The Globalization of War: America’s Hegemonic Project

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By Prof Michel Chossudovsky

Source: GlobalResearch.ca

The world is at a dangerous crossroads.  The United States and its allies have launched a military adventure which threatens the future of humanity. Major military and covert intelligence operations are being undertaken simultaneously in the Middle East, Eastern Europe, sub-Saharan Africa, Central Asia and the Far East. The US-NATO military agenda combines both major theater operations as well as covert actions geared towards destabilizing sovereign states.

America’s hegemonic project is to destabilize and destroy countries through acts of war, covert operations in support of terrorist organizations, regime change and economic warfare. The latter includes the imposition of deadly macro-economic reforms on indebted countries as well the manipulation of financial markets, the engineered  collapse of national currencies, the privatization of State property, the imposition of economic sanctions, the triggering of inflation and black markets.

The economic dimensions of  this military agenda must be clearly understood. War and Globalization are intimately related. These military and intelligence operations are implemented alongside a process of economic and political destabilization targeting specific countries in all major regions of World.

Neoliberalism is an integral part of this foreign policy agenda. It constitutes an all encompassing mechanism of  economic destabilization. Since the 1997 Asian crisis, the IMF-World Bank structural adjustment program (SAP) has evolved towards a broader framework which consists in ultimately undermining national governments’ ability to formulate and implement national economic and social policies.

In turn, the demise of national sovereignty was also facilitated by the instatement of the World Trade Organization (WTO) in 1995, evolving towards the global trading agreements (TTIP and TPP) which (if adopted) would essentially transfer state policy entirely into the hands of corporations. In recent years, neoliberalism has extend its grip from the so-called developing countries to the developed countries of both Eastern and Western Europe. Bankruptcy programs have been set in motion. Island, Portugal, Greece, Ireland, etc, have been the target of  sweeping austerity measures coupled with the privatization of key sectors of the national economy.

The global economic crisis is intimately related to America’s hegemonic agenda. In the US and the EU, a  spiralling defense budget backlashes on the civilian sectors of economic activity. “War is Good for Business”: the powerful financial groups which routinely manipulate stock markets, currency and commodity markets, are also promoting the continuation and escalation of the Middle East war. A worldwide process of impoverishment is an integral part of the New World Order agenda.

Beyond the Globalization of Poverty 

Historically, impoverishment of large sectors of the World population has been engineered through the imposition of IMF-style macro-economic reforms. Yet, in the course of the last 15 years, a new destructive phase has been set in motion. The World has moved beyond the “globalization of poverty”: countries are transformed in open territories,

State institutions collapse, schools and hospitals are closed down, the legal system disintegrates, borders are redefined, broad sectors of economic activity including agriculture and manufacturing are precipitated into bankruptcy,  all of which ultimately leads to a process of social collapse, exclusion and destruction of human life including the outbreak of famines, the displacement of entire populations (refugee crisis).

This “second stage” goes beyond the process of impoverishment instigated in the early 1980s by creditors and international financial institutions. In this regard, mass poverty resulting from macro-economic reform sets the stage of  a process of outright destruction of human life.

In turn, under conditions of widespread unemployment, the costs of labor in developing countries has plummeted. The driving force of the global economy is luxury consumption and the weapons industry.

The New World Order

Broadly speaking, the main corporate actors of the New World Order are

• Wall Street and the Western banking conglomerates including its offshore money laundering facilities, tax havens, hedge funds and secret accounts,

• the Military Industrial Complex regrouping major “defense contractors”, security and mercenary companies, intelligence outfits, on contract to the Pentagon;

• the Anglo-American Oil and Energy Giants,

• The Biotech Conglomerates, which increasingly control agriculture and the food chain;

• Big Pharma,

• The Communication Giants  and Media conglomerates, which constitute the propaganda arm of the New World Order.

There is of course overlap, between Big Pharma and the Weapons industry, the oil conglomerates and Wall Street, etc.

These various corporate entities interact with government bodies, international financial institutions, US intelligence.  The state structure has evolved towards what Peter Dale Scott calls the “Deep State”, integrated by covert intelligence bodies, think tanks, secret councils and consultative bodies, where important New World Order decisions are ultimately reached on behalf of powerful corporate interests.

In turn, intelligence operatives increasingly permeate the United Nations including its specialized agencies, nongovernmental organizations, trade unions, political parties.

What this means is that the executive and legislature constitute a smokescreen, a mechanism for providing political legitimacy to decisions taken by the corporate establishment behind closed doors.

Media Propaganda

The corporate  media, which constitutes the propaganda arm of the New World Order, has a long history whereby intelligence ops oversee the news chain. In turn, the corporate media serves the useful purpose of obfuscating war crimes, of presenting a humanitarian narrative which upholds the legitimacy of politicians in high office.

Acts of war and economic destabilization are granted legitimacy. War is presented as a peace-keeping undertaking.

Both the global economy as well as the political fabric of Western capitalism have become criminalized. The judicial apparatus at a national level as well the various international human rights tribunals and criminal courts serve the useful function of upholding the legitimacy of US-NATO led wars and human rights violations.

Destabilizing Competing Poles of Capitalist Development

There are of course significant divisions and capitalist rivalry within the corporate establishment. In the post Cold War era, the US hegemonic project consists in destabilizing competing poles of capitalist development including China, Russia and Iran as well as countries such as India, Brazil and Argentina.

In recent developments, the US has also exerted pressure on the capitalist structures of the member states of the European Union. Washington exerts influence in the election of heads of State including Germany and France, which are increasingly aligned with Washington.

The monetary dimensions are crucial. The international financial system established under Bretton Woods prevails. The global financial apparatus is dollarized. The powers of money creation are used as a mechanism to appropriate real economy assets. Speculative financial trade has become an instrument of enrichment at the expense of the real economy. Excess corporate profits and multibillion dollar speculative earnings (deposited in tax free corporate charities) are also recycled towards the corporate control of politicians, civil society organizations, not to mention scientists and intellectuals. It’s called corruption, co-optation, fraud.

Latin America: The Transition towards a “Democratic Dictatorship”

In Latin America, the military dictatorships of the 1960s and 1970s have in large part been replaced by US proxy regimes, i.e. a democratic dictatorship has been installed which ensures continuity. At the same time the ruling elites in Latin America have remoulded. They have become increasingly integrated into the logic of global capitalism, requiring an acceptance of the US hegemonic project.

Macro-economic reform has been conducive to the impoverishment of  the entire Latin america region.

In the course of the last 40 years, impoverishment has been triggered by hyperinflation, starting with the 1973 military coup in Chile and the devastating reforms of the 1980s and early 1990s.

The implementation of these deadly economic reforms including sweeping privatization, trade deregulation, etc. is coordinated in liaison with US intelligence ops, including the “Dirty war” and Operation Condor, the Contra insurrection in Nicaragua, etc.

The development of a new and privileged elite integrated into the structures of Western investment and consumerism has emerged. Regime change has been launched against a number of Latin American countries.

Any attempt to introduce reforms which departs from the neoliberal consensus is the object of “dirty tricks” including acts of infiltration, smear campaigns, political assassinations, interference in national elections and covert operations to foment social divisions. This process inevitably requires corruption and cooptation at the highest levels of government as well as within the corporate and financial establishment. In some countries of the region it hinges on the criminalization of the state, the legitimacy of money laundering and the protection of the drug trade.

 

The above text is an English summary of Prof. Michel Chossudovsky’s Presentation, National Autonomous University of Nicaragua, May 17, 2016. This presentation took place following the granting of a Doctor Honoris Causa in Humanities to Professor Chossudovsky by the National Autonomous University of Nicaragua (UNAN)

Five Ways America Is Like a Third-World Country

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By Nathan Wellman

Source: U.S. Uncut

The United States of America is possibly the wealthiest nation in the history of the world. However, many third-world countries actually surpass America in many of the most vital gauges for measuring human development.

Here are five of the most jaw-droppingly unforgivable ways in which America is lagging behind the rest of the world:

1. America’s criminal justice system is broken

The U.S. represents only 5% of the world’s population, but this one country comprises 25% of the world’s prison population. According to the NAACP, a disproportionate 58% of America’s prisoners are African-American or Hispanic despite these demographics only adding up to about 30% of the U.S. population.

The only nation that imprisons a greater percentage of its citizens than America is North Korea. The U.S. jails 716 people for every 100,000 Americans, according to the International Center for Prison Studies. That’s nearly twice as many as Russia (484 prisoners per 100,000), and far more than Iran (284) or China (121). For context, the U.S. only jailed around 100-200 people per 100,000 citizens in the 1970s, and the incarcerated rate is only getting worse today, even as crime rates fall. A staggering 60% of prisoners are in jail for nonviolent drug charges.

Inside prison, about 600 victims are raped every day, according to an estimate from the Justice Department. An in-depth DOJ investigation found that of the approximate 217,000 prisoners raped each year, 17,000 were juveniles.

2. Gun Violence is an epidemic

America has 20 times more murders when compared to the average rate of the developed world. Even terrorism-plagued Iraq has half the murder rate of the U.S. Over half of the deadliest mass shootings from the last 50 years happened in America, and 79% of those shooters got ahold of their guns legally. Some American cities, particularly New Orleans and Detroit, even surpass many Latin American countries, which suffer from some of the highest gun violence rates in the world.

3. Healthcare costs too much and delivers too little

America is the only developed country that does not ensure healthcare to all of its citizens. Even in the wake of the Affordable Care Act, millions of poverty-stricken Americans have no medical insurance because Republican governors have refused to expand Medicaid, even though the federal government is paying the cost and the simple measure would actually save money for their states.

Life expectancy in many American counties is lower than Nicaragua, Algeria, or Bangladesh. The U.S. is unusual among developed countries in that Americans die in the tens of thousands as a direct result of a lack of health insurance. America also spends twice the percentage of our GDP on healthcare than the average wealthy country for these substandard results.

America also suffers from the highest infant mortality and teen pregnancy rate in the developed world.

4. Inequality is rampant

Researchers have shown that economic inequality directly correlates to public distrust in government representatives, as well as a decrease in health and well-being.

Unfortunately, the U.S. has the worst rates of income inequality in the world, according to the 2015 Global Wealth Report conducted by Allianz. The wealthiest one percent of Americans own nearly half of the nation’s wealth invested in stocks and mutual funds, and the overall gap between rich and poor has only grown since the recession, with almost all income gains going to the top 1% since 2009.

Despite the idea of America being a meritocracy, those born in the poorest 20% of the American population have less than a 3% chance of making it to the top quintile.

5. Infrastructure is crumbling

America is quite literally falling apart.

One study concludes that the U.S. needs to invest $3.6 trillion into infrastructure over the next six years. One out of every nine American bridges (66,405 bridges) have been labeled “structurally deficient.”

Water runs through dilapidated wooden pipes in certain parts of South Dakota, Alaska, and Pennsylvania. Some of Detroit’s sewer lines still used today were originally constructed in the mid-1800s.

A whopping 45% of Americans have no access to public transit, and the construction of the infamously still-incomplete Second Avenue subway line in New York City has been hit with delays dating all the way back to World War II.

 

America certainly has and continues to achieve greatness in many ways. But if we want to truly earn our oft-proclaimed slogan of “Greatest Country in the World,” these fatal flaws in our system must be acknowledged and addressed. Otherwise, the emperor will continue to parade about with no clothes, and we run the risk of being completely surpassed by a world marveling at our oblivious nakedness.