Oil and Money – Lessons Learned

petrodollar-systemThis is a concluding post for an excellent 7 part long-form series featured on the Hipcrime Vocab blog. While this serves as an adequate synopsis of what was covered, I highly recommend the series for it’s depth and scope starting with the introduction.

Source: Hipcrime Vocab

The first thing I learned is that I bit off more than I could chew, lol. I was intending a simple book review, and it turned into a lot more than I intended to write. I also learned how difficult and thankless a task blogging can be. I’m glad at least a few of you chimed in to let me know you enjoyed it.

One major thing I learned (which I already sort-of knew) is how much real resources have to do with the economy, and economic history, despite economists’ insistence that land, labor and capital are all that matter. In fact, real resources appear to be the MAJOR driver of our economic fortunes. Even Forbes magazine had to admit: The Recessions of 1973,1980,1991,2001,2008 Were Caused By High Oil Prices. Energy doesn’t matter, huh?

I was really taken aback at how recent this all is. I was somewhat aware the historic problem with oil was that there was too much of the stuff.  Eric Roston, in The Carbon Age, writes, “Gasoline was a throwaway by product of kerosene refining until the early 1900s, used sometimes in solvents or as fuel for stoves. In 1892, two cents a gallon was a decent price. For another thirty years, apothecaries were the makeshift filling stations.”

But I had no idea just how much of a glut there was and how people thought it would last forever. That it was so cheap we needed the Texas Railroad Commission to hold back production so that the prices would be high enough. I mean, this substance contains the equivalent of ten to eleven years of human labor (1750 Kilowatt hours of human labor), for crying out loud! And it is a non-renewable resource! I was amazed at how far we went in coming up with new uses for the stuff, to the point destroying perfectly good and workable infrastructure just so we could use more of it. Can anything be more insane?

The long boom was driven by the exploitation of oil as a resource. This led to the dominance of the ICE (Internal Combustion Engine). All of the knock-on effects of the ICE were behind the post-war boom. I mean, you could write a book about all the economic development caused by cars and trucks. In fact, truck driver/delivery is still the most common job in most states to this day! The ability to deliver goods cheaply anywhere had so many knock-on effects, from the creation of whole new cities to the rise of big-box retailers. Let’s not forget that everything in that big-box retailer is made from plastic which is made from petroleum feedstocks. Kunstler calls the suburbs the greatest misallocation of resources in human history. It’s easy to see how that’s true.

I didn’t know that it was only as late as 1959 that petroleum overtook coal to be more than 50 percent of our energy use. I didn’t know that coal only became the world’s predominant energy source after 1900. Before that, we were still essentially in a wood/biofuel economy. As I wrote before, that’s pretty recent – less than three generations.

 We think of the 19th century as the era of coal, but as the distinguished Canadian energy economist Vaclav Smil has pointed out, coal only reached 5% of world energy supply in 1840, and it didn’t get to 50% until about 1900.

The modern oil industry began in 1859, but it took more than a century for oil to eclipse coal as the world’s No. 1 source. “The most important historical lesson,” Dr. Smil says, is that “energy resources require extended periods of development.”

The Power Revolutions (WSJ)

Peak oil ideas made it sound like oil (specifically petroleum) was the only resource that matters to the economy, so that once oil production stops growing, the economy will collapse. That’s clearly not the case (oil is 36 percent of the world’s energy). There are lots of other fuels in the mix. However, things like fracking, tar sands, and offshore drilling clearly mean that cheap, easy-to-get oil is on the wane. Oil is cheap now because of fracking – not the tight oil itself, but rather because the fear of it is keeping prices low by the Saudis. That will change. I’m always amazed at the people who run out and buy SUVs the minute the oil price goes down. Do they expect it to be cheap forever or do they expect to drive their car for only a year? It’s also cheap because our economy is in the crapper.

Forget who the candidates are and all the campaigning and the billions of dollars spent– If oil prices are high, the economy is in recession, and the incumbent party will lose power. You can pretty much predict any presidential election by this fact alone. Two-thousand is the only one that sort-of breaks the mold, and that was such a bizarre election between the hanging chads, the voting fraud and the Supreme Court. In other words, it’s not just the economy driven by energy prices – it’s the political world too. Everything else is just meaningless fluff.

At the end of the day, whether a president presides over a good economy or a bad economy is almost entirely down to oil prices.

The other thing that strikes you is the “Groundhog Day” nature of the situation. Oil prices get high, we get worried about the environment, and there’s a great boom in alternative energy, energy efficiency, environmental impacts, worries about the economy and supply chains, and so forth. Then oil prices go down and we forget all about alternative energy and all the inherent problems with relying on a finite resource. All the progress toward getting off of oil stagnates, and people assume oil will be cheap forever. Then they get high again, and suddenly it all becomes important again, and we have to go back to square one (compare the EV-1 to Tesla, for example. Heck, Edison built an electric car!). Charles Mann had a great line along the lines of “The human propensity to see flukes of good fortune as never coming to an end,” or something like that.

Given the manipulation of oil prices, it’s hard to see natural economic factors as ever being able to do the right thing when it comes to energy. When prices get high, new supply comes online and alternatives are pursued. But then oil prices crush the economy, demand falls more in line with supply, the price falls, and the initiatives are halted. It feels like the invisible hand is attached to an idiot. Maybe this time we’ll finally get serious.

Prices are temporary conditions. Peak oil is permanent.

The drug dealer analogy of us being addicted to oil is shopworn, but it is just so accurate. It was only once we were addicted to the product that they could jack up the price, and then we HAD to pay what they demanded. But like a drug that devastates the lives of its users, when you hit rock-bottom you try to get on the twelve-step program and get your life back. Then, the dealers will lower the price to keep you addicted, and the cycle begins again. Plus, every dealer wants to be your dealer, so they need to be just a little bit cheaper than the next guy. Barring that, they will bind together with the other dealers to keep the price high and protect their “turf.” The economics of drug dealing and oil are eerily similar. I wonder if anyone’s formally studied this.

In the past each new energy source was added on to the previous ones. Now we are talking about substitution – a totally different ballgame. That is, new energy sources will replace old. That’s substitution, not expansion.

Cheap oil combined with the opening up of China drove globalization. There is no way we could build the largest moving structures ever built to transport goods if we didn’t have a fuel source cheap enough to make it worthwhile. A single ship can move 19,000 containers, enough to move 300 million tablet computers.

That oil played a role in foreign policy shouldn’t be a surprise, but looking at exactly how it led to the invasions of Afghanistan and Iraq, the civil war in Syria, the removal of Qaddafi, the propping up or removing of dictators, and the positioning of armies around the globe was still eye-opening. So much foreign policy is dictated by access to oil. So much…

I was actually unaware of the Eurodollar and how I caused the fall of Bretton Woods. As Smith illustrates, going back to the gold standard is practically impossible (sorry libertarians). I was unaware of the role that Petrodollar recycling played in the Latin American debt crisis. I was aware of how the Petrodollars funded terrorism. I’m sure readers of Dmitry Orlov were familiar with the role oil and grain prices played in the fall of the Soviet Union. Again, this made Reagan look like a genius.

What I really wanted to describe is how the oil price crisis came about and how it led directly to the rise of Neoliberalism. I also wanted to show how Jimmy Carter’s “failure” and Ronald Reagan’s “success” was based mostly on oil prices. Some people would take issue with that, but it’s hard to separate one from the other. Is it 100 percent? Maybe not, but what percentage was oil prices? Seventy? Fifty? Twenty-five? Surely it played a role.

The problem is that it made Neoliberalism look like a success. People came to believe that unions were evil, and tax cuts for the rich and corporations, deregulation, and speculation were the magic keys to prosperity. But throughout the Neoliberal reign, oil prices were either stable or crashing. When that wasn’t the case, as in 2007-2008, the system came apart. The rise of China also made Neoliberalism appear to work. But it was smoke and mirrors – cheap uneducated labor, overinvestment, state-controlled enterprises, artificially cheap currencies, entire cities built with no people in them, etc. It was a Potemkin’s village on the scale of a nation. Globalization is a Ponzi scheme.

But now Neoliberalism is literally tearing the world apart. Some major reasons:

1.) Turning the speculators loose. The oil price rise and the food price rise seem to be mainly problems of market speculations (i.e. greed and fear, always the real movers of markets, not supply and demand). This has, in turn, led to political turmoil as we saw in the Arab Spring. If speculation continues to cause price rises for essentials like food, fuel and water to pad the fortunes of speculators, expect more chaos and collapse. Even in the U.S., the actions of Enron and “Kenny-boy” lay caused serious harm to economies, not expansion. And we spent enough on the bailouts to give every unemployed person a job and every homeless person a home, with billions left over. Is this how economies should be run?

2.) The suppression of worker wages has caused massive hardship around the world. The abandonment of full employment as a policy goal has led to a worldwide unemployment crisis that is destabilizing the world. Unemployed people have nothing to lose. People with nothing to lose tend to revolt (see above). The gutting of social services and welfare safety nets has also led to poverty and desperation all around the world. It calls into question the ability of capitalism to deliver broad increases in living standards everywhere. We are clearly not seeing that. We’ve been in reverse for some time. Shouldn’t an economic system make us ALL richer, rather than provide winners and losers? If it can’t, what kind of system is it?

3.) Globalism spreads not only the wealth around, but the poverty too. Some countries, notably Western Europe, have attempted to defend their citizens, while others like the United States, did nothing to insulate its workers from third-world wages and working conditions (and even encouraged them). Rising living standards in China and India are one thing, but falling living standards in formerly wealthy countries make the rich capitalists richer, but cause anger and consternation which is easily exploited by the unscrupulous and power-hungry. This is also destabilizing. Just look at all the anger in the U.S. today searching for a scapegoat.

4.) Austerity and the straitjacketing of governments has led to wealthy, industrialized countries “undeveloping.” The United States is a nation of private affluence and public squalor, with one-third of its children living in poverty, entire cities abandoned and crumbling, urban areas too expensive for median income workers, the infrastructure of a banana republic, poor access to education and healthcare, pockets of poverty, ghettoes, etc. Greece is being gutted as an example to the West. This is leading to rise of right-wing parties in Europe, again redolent of the run-up to the Second World War.

5.) The faith in Markets to solve all problems is especially disastrous with an ongoing environmental crisis. Instead of rationing or capping, instead we get easily gamed “cap and trade” markets to reduce emissions. Nature is just “natural capital,” and every drop of water, tree leaf, and grain of sand must be assigned an owner and a price. In other words, all of nature must be subsumed into the market, because markets are the only way we can solve our problems! This is a Neoliberal idea. Look at how the United States responded to the crisis in the seventies by contrast.

6.) Debt crises have caused massive hardship around the world. As I learned, Mexico’s reputation as a haven for poverty, prostitution, drug gangs, etc. was only after the Latin American debt crisis of 1982. That, in turn, led the massive influx of Latin American refugees into the United States turning America into a Latin country overnight.  Prior to 1979, places like Afghanistan, Iran, Lebanon, Egypt, Iraq, Algeria, Syria and Libya were stable, secular, relatively prosperous places (See this. And this). Now look at them. Yes, they had dictators and human rights violations. But compare it to today. Latin America has fared somewhat better, largely by finding a way to reject or bypass Neoliberalism. Africa has not fared well, either. Note that you only heard about collapse and famine after the 1980’s (remember Ethiopia?). Yes, Africa was poor before then, but it seemed to be heading in the right direction. Not any more.

7.) People from these wrecked countries are heading to the Western industrialized countries in massive waves of migration–Latin America for the United States and Canada, and the Middle East and Africa for the European Union. This has driven down wages and caused the rise of nativist parties. Everyone is heading for the lifeboats as more and more countries become failed states. There is simply not enough room for all. But rebuilding these countries would mean abandoning the Neoliberal paradigm, forgoing debt and putting into place quasi-socialist policies. Then again, the rich can always retreat to floating offshore islands (and eventually space colonies).

It’s clear that much of the money that has not been collected by governments has gone not only into speculation as opposed to productive activity, but in purchasing political representation. This has led to democracies devolving into oligarchies and a mistrust of democracy in general. The buying of politicians and the media blocks any attempts to deal with collapsing systems. We’ve seen ever greater instability and ever greater bubbles under Neoliberalism now that government has been “contained” and workers have been “disciplined.”

The answer to our problems should be clear: abandon Neoliberalism and return to the mixed economy. Stop hamstringing governments. End speculation. Tax the rich. Close offshore tax shelters. Raise tariffs. Defend domestic industries. Write down the debts. Pursue full employment policies such as a job guarantee, reduced working hours and an basic income guarantee. Distribute essential social services through the government, and let the market handle non-necessities. Regulate to deal with externalities. Impose limits on natural resource extraction. Decarbonize energy.

All of this used to be common-sense. Now it beyond the pale.

The problem is, it’s a ratchet effect. We cannot go back, because TPTB will not allow it. And since the 1970s, they learned they had to not only control the government, but the information we imbibe day after day, otherwise we would instruct our government to do something the powerful may not want. Instead, we had to be convinced that Neoliberalism is the only valid economy – hence the think tanks, talk radio, publishing mills, Fox news, etc. Any sense of common purpose or solidarity is evil “socialism.” As we learned, even “liberal” news sources are fully dedicated to defending this paradigm at all costs, even at the cost of credibility. And the funding of the political classes by the wealthy will ensure that anything that threatens the fortunes of the oligarchs will be a non-starter, even if people do see past the media rhetoric.

The change in economics swallowed the hope of the sixties. How much does it have to do with Neoliberalism, and how much with oil prices? A lot of commenters say, “Hey, the oil is gone, we just need to learn to be peasants.” They point out that American wages stopped growing in 1973, around the time domestic oil production peaked in the U.S. But I think that’s simplistic. American wages stopped growing, not everyone else’s–not what we’d expect in an energy descent scenario. Rather, I think it was the wealth transfer of the seventies, and the politics it engendered, that was the primary culprit. The oil shock opened the door for globalized Neoliberalism, and that is the primary cause of our misfortune. By using oil as an excuse to be politically passive, we remove any chance at creating an economy that works better for all and play into the hands of the powerful.

I think old economy Steve puts it best. Or shall we say, “mixed economy” Steve:

OY4w945

The Suspicious Downing of Russia’s Metrojet Airbus A321-200. “The ISIS is a Creation of the CIA”

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By Larry Chin

Source: Global Research

The explosion and crash of Russian Metrojet Airbus A321-200 over Egypt’s Sinai peninsula raises ominous new questions. There are going to be numerous theories bandied about in the course of another long international “investigation”, accompanied with endless political spin from all sides.

We hear numerous variations that boil down to two basic theories: catastrophic mechanical failure or bomb.

Many officials have already ruled out a missile strike because there was no evidence of a missile launch nor an engine burn. US satellites detected heat around the plane before the explosion, but the cause of the heat is unknown. In an Associated Press account, US aviation analyst Paul Beaver stated, “It doesn’t tell us if it was a bomb, or if someone had a fight in the airplane with a gun—there is a whole raft of things that could happen in this regard.” Adding to the mystery, Beaver also noted that in the event of a fuel tank or engine explosion, “engines are designed so that if something malfunctions or breaks off, it is contained within the engine”. The plane broke up at high altitude.

Most recently, British officials have more strongly suggested that a bomb was the cause. And now, US intelligence officials are coming forward to embrace the idea of a bomb.

Looking past the political smoke, one scenario deserves scrutiny.

The Islamic State (IS) has taken responsibility for the incident. In a manifesto, the IS claimed to have brought down the Russian plane in retaliation for Russian military intervention in Syria.

Egyptian officials immediately derided the claim as propaganda that damages the image of Egypt. But at the same time, the authenticity of the IS propaganda has not been debunked. The nature of the propaganda was in keeping with previous manifestos; CIA standard procedure. There is “insufficient evidence” to support the claim, but there never is sufficient evidence. By design.

Given the amply documented fact that the IS (ISIS, ISIL, etc.) is a creation of US intelligence, and function as assets and military-intelligence fronts of the CIA and Washington—financed, recruited and trained by the US and its allies— why shouldn’t the claims of responsibility be taken at face value?

In an era in which false flag atrocities and deception have constituted US foreign policy, it is in no way inconceivable that forces aligned with Washington committed yet another act of terrorism, another act of war, to send a message of warning and/or provocation to Moscow.

This is by no means the first time that the downing of a plane has been exploited for political purpose, aimed at Russia. The false flag shootdown of MH-17 and the cover-up and propaganda that followed offers a ghastly example. The history of American covert operations is rife with atrocities involving planes.

The CIA is opportunistic, flexible, and selective with its work. In this conveniently-timed case, Washington can deny terrorism, warn about terrorism, poo-pooh the jihadist rhetoric (sourced to their own propaganda machine), and express sympathy, all at the same time that a brutal political message is sent to Moscow.

This scenario is not merely “conspiracy theory” when viewed against current big picture realities, and the fact that a superpower war is underway. As chronicled by Michel Chossudovsky:

While the media narrative acknowledges that Russia has endorsed the counter-terrorism campaign, in practice Russia is (indirectly) fighting the US-NATO coalition by supporting the Syrian government against the terrorists, who happen to be the foot soldiers of the Western military alliance, with Western mercenaries and military advisers within their ranks. In practice, what Russia is doing is fighting terrorists who are supported by the US.

The forbidden truth is that by providing military aid to both Syria and Iraq, Russia is (indirectly) confronting America.

Moscow will be supporting both countries in their proxy war against the ISIL which is supported by the US and its allies.

Russia is now directly involved in the counter-terrorism campaign in coordination with the Syrian and Iraqi governments.

In fact, as written in Tru Publica, the war in Syria is not about the Islamic State.

In fact,

“the countries involved in this war are now from all four hemispheres of the planet who are now represented and engaged in a conflict that will definitely be a fight to the very end.”

We can even go beyond this measured view. From Ukraine to Syria, to hot spots across the Middle East and North Africa, we are witnessing an increasingly open war between Washington and Russia, no different than the Cold War (Vietnam, etc.) but with stakes even higher, engulfing far more of the planet. Add to this the increasing tensions between the United States and China, and the map of the global conflict is literally worldwide. What cannot be argued is that the war between the superpowers is intensifying, perhaps past the brink.

The downing of a Russian passenger plane and the death of hundreds of Russians would mean nothing to the war criminals with grand aspirations of conquest for the geography and resources of the most resource-rich chunks of the Earth.

Russia has openly and resolutely waged effective military counter-terrorism operations against the terror fronts of the US and NATO—all jihadist terrorist armies, including ISIS, ISIL, Al-Qaeda, and Al-Nusra, which are all US and CIA fronts. What Moscow has done is call Washington’s bluff and upping the ante.

Put simplistically, Moscow said:

“If you (US-NATO) truly wish to combat terrorism throughout the region, then we will ‘help you’, by actually doing it.”

These operations were followed by agonized and flummoxed whines from Washington, as more and more of the Anglo-American empire’s terror assets have been hampered from their massive attempt to topple the Assad regime. The Vienna-Geneva Peace Talks are a charade that buys time for Washington to counter the Russian actions.

Moscow, acting as the actual “good guys”, have “ruined everything”; ripped the “false good guy” mask off of Washington’s massive criminal operation. This embarrassment to the empire had to be met with a desperate reply.

Was Metrojet Airbus A321-200 part of this response? The message from the Islamic State (aka the CIA) clearly was.

The message was received: Russian President Vladimir Putin’s spokesman Dmitri Peskov quickly rejected any connection between the crash and the Russian military operation in Syria, while Putin himself has vowed that nothing will succeed in scaring them off.

Full Text of TPP Released to Public… And It’s Horrible

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‘We now have concrete evidence that the Trans-Pacific Partnership threatens our families, our communities, and our environment.’

By Jon Queally

Source: Commondreams

It’s a disaster for people, the planet, democracy, and the future of the global economy.

That was the immediate assessment of informed critics as world governments, including the United States, on Thursday morning made the full text of the controversial Trans Pacific Partnership Agreement (TPP) available to the public for the first time.

Though a tightly held secret throughout the years-long negotiating process, publication of the entire text (available online here) confirms the deal’s many woeful inadequacies which had been gleaned from leaked drafts and public statements by those privy to its contents.

“The TPP is a disaster for jobs, and environment and our democracy. It is the latest stage in the corporate capture of our society,” said Nick Dearden, executive director of Global Justice Now, in response to the full text.

The enormous so-called “free trade” deal between 12 Pacific Rim nations, he continued, “has less to do with selling more goods, than with rewriting the rules of the global economy is favor of big business. Like the North American Free Trade Agreement (NAFTA), 20 years ago, it will be very good for the very richest, and a disaster for everything and everyone else. NAFTA entrenched inequality and caused massive job losses in the USA, and TPP is turbo-charged NAFTA.”

Based on its initial assessment of the text, Sierra Club said—just as predicted—the TPP would threaten the health of communities, the environment, and global climate.

“We now have concrete evidence,” said Michael Brune, the group’s executive director, “that the Trans-Pacific Partnership threatens our families, our communities, and our environment. It’s no surprise that the deal is rife with polluter giveaways that would undermine decades of environmental progress, threaten our climate, and fail to adequately protect wildlife because big polluters helped write the deal.”

Now parked for all to see and review on the website of the U.S. Trade Representative, the deal itself is over 2,000 pages long, broken into 30 separate chapters and various indexes and appendixes.

Released one month after the final deal was secured at a final negotiating meeting in Atlanta, Georgia, the publication of the text in the U.S. begins a 90-day review period before Congress.

The good news, said Dearden, is that the TPP can still be stopped and that civil society groups in all of the countries involved will use the coming weeks and months to mobilize against its passage. “We’ll be doing all we can to support the huge swathe of trade unions, campaigners, activists and consumer groups  in all those countries fighting TPP in the coming months.”

In the U.S., said Brune, environmental groups like his will be marching and lobbying alongside allies from labor and economic justice groups to make sure lawmakers vote the deal down. “Congress must stand up for American jobs, clean air and water, and a healthy climate by rejecting the toxic Trans-Pacific Partnership.”

Headline News: US Congress Member Speaks the Truth on CNN

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In a time when politicians are expected to lie and corporate news networks more often than not self-censor (if/when covering actual news), it’s indeed a headline story when a member of congress speaks the truth on a corporate cable news program. Not surprisingly for those who’ve followed her career, the refreshingly honest words came from Rep. Tulsi Gabbard.

Gabbard was one of the first female combat veterans and became the youngest woman elected to a U.S. state office (as Representative for for Hawaii’s 42nd House District ) at age 21 in 2002. In 2004, Gabbard deployed with her Hawaii Army National Guard unit for a 12-month tour in Iraq where she served in a field medical unit as a specialist with a 29th Support Battalion medical company. Upon her return from Iraq in 2006 Gabbard served as a legislative aide for U.S. Senator Daniel Akaka in Washington, DC. During this time she attended the Accelerated Officer Candidate School at the Alabama Military Academy and finished as the distinguished honor graduate in March 2007  (a first for a woman in the Academy’s 50-year history). From 2011 and 2012 Gabbard served in the Honolulu City Council and in 2012 became the first American Samoan and Hindu member of the US Congress. On October 12, 2015 Captain Gabbard was promoted to Major at a ceremony at the National Memorial Cemetery of the Pacific, the same day she was disinvited by the DNC from the Democratic presidential debate for publicly stating she wanted to see more debates. Gabbard has been politically outspoken as a pro-choice and same-sex marriage supporter and has advocated for alternative energy, Native Hawaiian rights and a return of the Glass-Steagall Act. She has also opposed the use of drones to kill U.S. citizens.

As cynical as most of us should be about politics and government in this day and age, it’s promising when individuals who seem to have the honesty, intelligence and work ethic to be a true leader rise through the ranks. It’s especially hopeful for those who’d like to see more women in positions of power (other than Hillary, Palin, Fiorina, etc), regardless of whether improved leadership does anything significant to fix the current system.

Statements from Gabbard in the CNN segment that may startle those who habitually get news from corporate media include:

“The U.S. and the CIA are working to overthrow the Syrian government of Assad…

…while Russia, a long-time ally of Assad for decades now, is working to defend or uphold the Syrian government of Assad, and this puts us in a position of a possible direct head-to-head conflict with Russia as long as the U.S. and CIA continue down this path.”

(H/T: Truthstream Media)

Why Russia is Serious About Fighting Terrorism and the US Isn’t

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By Maram Susli

Source: New Eastern Outlook

Russia in the few days it has been of fighting terrorism in Syria has achieved far more than the US coalition. According to the New York Times, Russia’s fighter jets are conducting nearly as many strikes in a typical day as the American-led coalition has been carrying out each month this year, a number which includes strikes conducted in Iraq – not just Syria.

Whilst the US has been bombing ISIS for over a year, ISIS has only grown and gained more ground in Syria. A few months ago ISIS took over the ancient city of Palmyra in Syria, a UNESCO world heritage-listed site.

In spite of the fact that the US government acknowledged ISIS cannot be defeated without ground troops, they have refused to work with the Syrian military, the only force on the ground commanded by the only UN-recognized government in the country, and the only force capable and willing to fight ISIS.

On the other hand Russia is coordinating with the Syrian military on the ground, assisting Syrian troops in gaining ground against terrorism. The discrepancy shows a lack of honesty on the part of the US when it comes to its real agenda in Syria vs its proclaimed goal of fighting terrorism. The US is capable of more, the US military is the most powerful and technologically advanced force in the world. It is logical to conclude that they are willfully throwing the fight against terrorism in Syria and the reasons for that should be examined.

ISIS Serves US Geopolitical Interests, Threatens Russia’s

It has become clear that the US’s main objectives in Syria is not their expressed goal of ‘fighting ISIS’, but regime change, isolating Russian influence, the Balkanization and the creation of failed states. US presidential candidate and former Secretary of State Hillary Clinton herself stated that ‘removing Assad is the top priority”.

The US sees the Syrian state as one of the last spheres of Russian influence beyond the borders of the former Soviet Union, and a threat to its Israeli ally in the region. The presence of ISIS and other terrorists groups serves these interests. The US has a history of using terrorism to topple governments friendly to Russia. Al Qaeda itself was borne of the US objective to topple the Soviet friendly government of Afghanistan. The dismemberment of Russian-friendly Serbia and the creation of Kosovo was done via the same means.

More recently ISIS was a direct result of the US’s intervention in Iraq, and have only arrived in Libya and Syria in the wake of overt US-backed regime change efforts there. Although Libya and Iraq did not have relations with Russia as strong as Syria’s, Russia was still their main weapons supplier. It is therefore not surprising that since Russia entered the war in Syria, Saudi clerics and the Muslim Brotherhood – both US state assets – declared ‘jihad’ on Russia.

The former Defence Intelligence Agency (DIA) Chief Michael Flynn said in an interview that he believed the US had made a willful decision to allow ISIS to grow in Syria. A 2012 declassified DIA report, wrote if the US and its allies continued to destabilize Syria by arming extremist insurgents “there is the possibility of establishing a declared or undeclared Salafist principality in eastern Syria… and this is exactly what the supporting powers to the opposition want, in order to isolate the Syrian regime.”

The CIA had trained thousand of ‘rebels’, not to fight ISIS, but admittedly to fight the Assad government and Syrian military – showing once again that the real objective behind the US’ involvement is regime change. Media across the West has even admited this, including the Washington Post which would report:

…the CIA has since 2013 trained some 10,000 rebels to fight Assad’s forces. Those groups have made significant progress against strongholds of the Alawites, Assad’s sect.

Russia Has More to Gain by Truly Fighting Terrorism 

On the other hand Russia has clear geopolitical interests behind defending the Syrian state against terrorism. Syria has been an ally of Russia for decades, and it hosts Russia’s only Mediterranean naval base. Russian Foreign Minister Lavrov stated that Russia is entering Syria to prevent ‘another Libyan scenario,’ or in other words – to prevent it from turning into a failed state as the US had done to Libya.

Furthermore Russian interests in fighting terrorism are tied directly to Russia’s own national security. Russia has had problems in the past with terrorism within their own borders and in particular, Chechnya. Chechen fighters who have joined ISIS in Syria, have now threatened to take the fight to Moscow. Jabhat Al Nusra, Syria’s Al Qaeda faction, have also called for terror attacks in Russia. In an interview with 60 minutes, Russia’s President Vladimir Putin stated that it is better to fight terrorists in Syria than wait until they return to Russia.

Terrorism poses far greater risks to Russia’s national security than it does to the US. Not only is their proximity closer, but terrorists in Russia have the potential to cleave off part of the state and overrun entire Russian towns. This is not the case for the US, whose only risk to national security would be civilian deaths due to bombings, and that is not necessarily something that the US government would find a real ‘problem,’ and in fact, might even see as a possible opportunity.

The US Seeks Only to Contain ISIS

The US only wants to contain ISIS within Syria and Iraq’s borders indefinitely – not to defeat them. This was admitted to by a member of the current US government and party, Democratic Rep. Adam Smith to CNN who stated:

…we need to find partners that we can work with in Syria to help us contain ISIS. So it is a difficult problem to figure out the best strategy. I agree, they have safe haven there in parts of Syria and that will have to be part of the strategy for containing ISIS. 

Chairman of the U.S. House Intelligence Committee, Rep. Devin Nunes told CBS news:

 I think we are containing ISIS within the borders of Iraq and Syria. Outside of that we’re not doing much.

US President Barack Obama himself stated that he would like to like to:

…continue to shrink ISIL’s sphere of influence, its effectiveness, its financing, its military capabilities to the point where it is a manageable problem.

This suggests that President Obama wants to maintain ISIS sphere power to a contained manageable circle, like a diseases that is treated but never cured. Obama perhaps got his policies on the advice of the Brooking Institute think-tank, which stated:

Should we defeat ISIS? Rather than defeat, containing their activities within failed or near-failing states is the best option for the foreseeable future.

The US is Not Actually Bombing ISIS

The US bombing of ISIS has been mostly nominal, an exercise in perception management. Although the US Defense Intelligence Agency makes regular claims to have bombed specific targets, rarely is video evidence of the bombing strikes published. On the other hand the Russian military regularly releases video of most of the strikes on Russia Today. It was also leaked that the US had forbade its fighter jets from targeting a long list of ISIS training camps, which turn out thousands of fighters a month.

Award winning journalist Robert Fisk told the Australian program Lateline that the US could have bombed a convoy of ISIS militants who were taking over Palmyra, but instead allowed them to take over a Syrian military post as well as the ancient City which they have now begun to destroy. When the US has dropped bombs on ISIS run territory they have used the opportunity to primarily destroy Syria’s oil infrastructure. Likewise the US has largely avoided bombing ISIS and Al Qaeda targets in the Syrian district of North Hama in an attempt to prevent Syrian troops from gaining ground.Russia is now striking these targets long the benefactors of US-granted impunity.

The US Has ‘Forgotten’ its War with al Qaeda, Now Protects It

Perhaps the most ironic development of Russia’s involvement in Syria’s fight against terror, is the anger expressed by the US government and its media at Russia’s bombing of Al Qaeda (Jabhat Al Nusra) targets.

Former US National Security Adviser Zbigniew Brzezinski, the man largely responsible for the creation of Al Qaeda, expressed his frustration with the fact that Russia was targeting Al Qaeda as well as ISIS through his twitter account. Pro-NATO media has all but forgotten its war with Al Qaeda, and avoids any mention of its existence preferring to concentrate on ISIS instead. They have especially tried to avoid bringing to light the fact that Russia is bombing Al Qaeda in Syria where the US has largely avoided doing so including Homs, Hama, Idlib, and around Aleppo.

In the same CNN article which accuses Russia of not targeting ISIS but rather‘Syrian rebels”, two maps displayed from the Institute for the Study of War shows a very telling story. The first shows the areas in which Jabhat al Nusra controls or jointly controls with its allies – the so called moderate rebels receiving US-backing – but on a map showing locations of Russian strikes, Jabhat al Nusra territory can scarcely be seen, obstructed by highly concentrated Russian strikes – in other words – it is finally being wiped out of these areas.

The US is Continuing to Fund and Arm Terrorists

The map further illustrates how US-backed ‘moderate rebels’ working alongside Al Qaeda has become such common knowledge. In the past, commanders of rebel groups labeled ‘moderate’ by the US government have fought alongside ISIS, and reiterated their support of ISIS in satellite news interviews.

Recently “moderate rebels” from the so-called “Free Syrian Army” Division 16 joined Al Nusra in their attacks against the Kurdish city of Sheikh Maqsud in Aleppo. Pro-NATO media has even been reduced to calling the rebels ‘relatively moderate’. Relative to Al Qaeda and ISIS?

In any case, ‘moderate’ has always been a relative term, unlike the word secular which is the US run media dares not use to describe the US backed insurgency. Last week the US abandoned a Pentagon program to train rebels to fight ISIS, after all but five defected to Al Qaeda taking their weapons and training with them. Past attempts by the US to arm ‘vetted rebels’ has resulted in TOW anti-tank missiles ending up in the hands of Al Qaeda. But instead of admitting to the fact that ‘moderate rebels’ do not exist and ceasing the illegal armament of extremist insurgents, the US government has instead chosen to openly back “established rebel groups” who have close ties to Al Qaeda. The US is now sending yet another shipment of TOW missiles to these extremist groups through its ally Saudi Arabia.

Al Qaeda is not the only terrorist group the US has been accused of arming. This month, footage filmed by the Iraqi military of an oil refinery that had been captured by ISIS, shows US supply crates full of food and weapons having been delivered to Islamic State militants by parachute. In 2014, footage of another US supply drop to ISIS in Kobane Syria also emerged online. Only a few days ago the US airdropped 50 tons of ammunition into Hasake region of Syria, where there has been a lot of ISIS activity. Most of the weaponry used by ISIS is US made. In January this year, an Iraqi MP Majid al-Ghraoui publically accused the US of supplying ISIS with weapons through airdrops.

Iraq Trusts Russia More Than the US in a Real Fight Against Terrorism

The Iraqi government has become increasingly suspicious of the US’ lack of real commitment in fighting ISIS. On the other hand, Russian strikes have thus far been so effective against ISIS that the Iraqi government has asked Russia to take on a bigger role against ISIS than the US.

Russia has in turn signaled that it may start bombing ISIS in Iraq as well as Syria, with the permission of the Iraqi government. Unlike the US, Russia has not broken international law and has sought permission to enter Iraq and Syria from each respective state’s legitimate government.

With these actions Russia has called the US’ bluff on fighting ISIS, and is effectively forcing the US to do a better job of convincing the Iraqi government that it is truly fighting ISIS. If Russia does enter Iraqi airspace, it will more easily cross into Syrian airspace to provide supplies to the Syrian government, since the US has bullied many countries in the region to close their airspace to Russian aircraft. Furthermore, if Iraq asks Russia to enter, it is a scenario that would reverse any of the influence the US had gained in Iraq throughout its lengthy occupation of the country since 2003.

The US has been backed into a corner, and in doing so, has exposed itself and its allies as the source of terrorism, not champions truly fighting it. Terrorism has always been a means by which the US has sought to deconstruct Russian spheres of influences. Ironically over the last decade it has also simultaneously perpetuated the myth that it is actually fighting a war against terror. However as its allied states grow increasingly tired of this game, how long can the US continue to juggle this duplicity, before the entire deck of cards crumbles?

Maram Susli also known as “Syrian Girl,” is an activist-journalist and social commentator covering Syria and the wider topic of geopolitics. especially for the online magazineNew Eastern Outlook”.

 

Why America Will Never Hear the Entire Benghazi Story

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By Larry Hancock

Source: WhoWhatWhy.org

The underlying story of Benghazi is one that cannot and will not be talked about in any open session of Congress. This means that Thursday’s hearing featuring former Secretary of State Hillary Clinton was nothing but an exercise in futility.

It is the story of a covert CIA operation that was operating from a separate facility in the Benghazi compound that was simply known as the “Annex.” Some two dozen CIA case officers, analysts, translators and special staff were a part of this operation and its security was provided by CIA Global Response Staff (GRS), who had entered the country under diplomatic cover.

The CIA’s mission included arms interdiction — attempting to stop the flow of Soviet-era weapons to Central Africa — and very possibly the organization of Libyan arms shipments to vetted insurgent groups on the ground in Syria.

There is also evidence that the mission was working in concert with military personnel from the Joint Special Operations Group Trans-Sahara. At the time of the attack, an unarmed American surveillance drone was in flight over the territory east of Benghazi and Trans-Sahara military personnel were stationed in the Libyan capital of Tripoli.

In contrast, the State Department’s special diplomatic mission facility, classified as “temporary,” was minimally staffed with a rotating series of State Department officers sent to and from Tripoli.

US Ambassador Christopher Stevens had not been in Benghazi for a year. When he arrived for a short stay in September 2012, only a single diplomatic officer was present there, and that officer rotated back to Tripoli upon the ambassador’s arrival. Stevens was accompanied by a communications officer and a handful of Diplomatic Service Security staff. The security personnel provided protection for the ambassador during his travels and meetings in the city. His presence was intended to be extremely low key, but it was exposed in the local media shortly after his arrival.

Fruitless, Meaningless, Pointless Questioning

Asking Clinton to justify maintaining the State Department temporary mission in the face of a worsening security situation is fruitless, given its actual function as a clandestine national security mission cover.

Questioning Clinton about that role would be as meaningless as questioning senior CIA personnel about operational information. Such missions cannot be publicly acknowledged or discussed, and revealing anything about them is strictly prohibited.

The same national security laws constraining State Department and CIA personnel also prevent lawmakers, other than those on select intelligence committees, from being briefed on such missions. And even those privileged individuals could not raise related questions in public — or even in closed sessions that include committee members or staff without the appropriate clearances.

In addition, querying Clinton about her involvement in the immediate response to the attacks is also pointless. The Secretary of State has no legal or operational role in a military response to a diplomatic facility attack. Only National Command Authority (president/secretary of defense) can order a foreign military intervention. The State Department does have Foreign Emergency Support Teams (FEST), composed of personnel from multiple agencies and maintained on alert to respond to crisis. But the FEST teams have no military elements and are dispatched only in the aftermath of a crisis, when the security situation allows. Following an attack their role is damage assessment and recovery.

Earlier investigations have already documented that President Obama ordered a military response immediately upon word reaching Washington. They showed as well that the AFRICOM commander responded to that order right away, directing deployment of the closest military quick reaction units — units which were on station in Spain, training in Eastern Europe, or back in the United States.

There were no armed American aircraft or naval units close enough to respond during the attack, those assets were in operation in Afghanistan, Iraq and around the Horn of Africa in Somalia and Yemen.

Maintaining a Covert Profile

As for the well-equipped paramilitary operatives at the CIA station, according to their own statements, they were initially held back by the CIA station chief — as they had been in other incidents. And the station chief was, in turn, acting under his directive to let local militia groups respond. That practice was intended to maintain the station’s covert profile. Unfortunately, it was not consistent with providing any real time defense for the State Department compound.

Given all of the above, it is clear why the hearing quickly turned into a game of “pin the tail on the donkey.” As Democrats have claimed all along — and some Republicans have recently admitted — the committee’s work is mostly about beating up a political adversary and not at all about advancing the security of American diplomats abroad.

 

Larry Hancock conducts investigative and historical research in the areas of intelligence and national security. He has studied Benghazi in regard to both its covert aspects and the issues it raises for diplomatic security. That work is published in Shadow Warfare, A History of America’s Undeclared Wars (Counterpoint, 2014) and his most recently published book, Surprise Attack, from Pearl Harbor to 9/11 to Benghazi (Counterpoint, Sept. 2015).

Politicians Exploit School Shooting While Ignoring Bombing Victims

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By Ron Paul

Source: Ron Paul Institute

Following the recent Oregon school shooting, many politicians rushed to the microphones to call for new gun control laws. President Obama even called on gun control supporters to “politicize” the shooting, while some members of Congress worked to establish a special commission on gun violence.

The reaction to the shooting stands in stark contrast to the reaction to the US military’s bombing of an Afghanistan hospital run by the international humanitarian (and Nobel Peace Prize winning) group Doctors Without Borders.

Our Nobel Peace Prize winning president did apologize to his fellow Nobel laureate for the bombing. However, President Obama has not “politicized” this tragedy by using it to justify ending military involvement in Afghanistan. No one in Congress is pushing for a special commission to examine the human costs of US militarism, and the mainstream media has largely ignored Doctors Without Borders’ accusation that the bombing constitutes a war crime.

The reason for the different reactions to these two events is that politicians prefer to focus on events they can “politicize” to increase government power. In contrast, politicians ignore incidents that raise uncomfortable questions about US foreign policy.

If the political and media elites were really interested in preventing future mass shootings, they would repeal the federal “gun-free” schools law, for example. By letting shooters know that their intended victims are defenseless, the gun-free schools law turns schoolchildren into easy targets.

Even some who oppose gun control are using the shooting to justify expanding federal power instead of trying to repeal unconstitutional laws. Some opponents of new gun control laws say Congress should expand the federal role in identifying, tracking, and treating those with “mental health problems.” This ignores the fact that many shooters were using psychotropic drugs prescribed by a mental health professional when they committed the horrible acts. Furthermore, creating a system to identify and track anyone with a “mental health problem” could deny respect for individuals’ Second Amendment and other rights because they perhaps once sought counseling for depression while going through a divorce or coping with a loved one’s passing.

While our political and media elites are eager to debate how much liberty people must sacrifice for safety, they are desperate to avoid debating the morality of our foreign policy. To admit that the US military sometimes commits immoral acts is to admit that the US government is not an unalloyed force for good. Even many proponents of our recent wars support using the US military for “humanitarian” purposes. Thus they are as reluctant as the neoconservatives to question the fundamental goodness of US foreign policy.

Anyone who raises constitutional or moral objections to the US use of drones, bombs, indefinite detention, and torture risks being attacked as anti-American and soft on terrorism. The smear of “terrorist apologist” is also hurled at those who dare suggest that it is our interventionist foreign policy, not a hatred of freedom, that causes people in other countries to dislike the United States. Which is a more logical explanation for why someone would resent America — a family member killed in a drone attack launched by the US military or rage over our abundance of liberty?

The disparate reactions to the Oregon school shooting and the Afghanistan hospital bombing shows the political class is unwilling and unable to acknowledge that the US government cannot run the world, run our lives, or run the economy. Clearly, politicians will never stop expanding government and give us back our lost liberties unless and until the people demand it.

The MH17 Big Lie: The Russians Did It

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By Stephen Lendman

Source: Steve Lendman Blog

Downing MH17 was a classic false flag, the scheme likely cooked up in Washington, using its Kiev puppet regime to do its dirty work, then point fingers the wrong way.

The Russians DID NOT down MH17 – nor Donbass freedom fighters. No credible evidence suggests it. Only fools and liars believe it.

What could they possibly gain from downing a commercial airliner, unrelated to conflict on the ground, killing 298 passengers and crew members.

Washington and/or Kiev had motive and opportunity, gaining plenty by pointing fingers the wrong way, supported by the usual scoundrel media chorus, featuring Big Lies and innuendos.

The Dutch Safety Board (DSB) is a front for US imperial policy. Joint Investigation Team (JIT) countries include the Netherlands, Australia, Belgium and Ukraine – conspiratorially allied against Russia, Washington pulling the strings behind the scene.

DSB’s final report is out. It stopped short of naming perpetrators, suggested Russia and Donbass freedom fighters were responsible without saying so.

It claimed a (a no longer in use Soviet era) Russian-made Buk 9M38-series (surface-to-air) missile (used only by Ukraine, not Russia’s military) downed MH17 – refuting earlier reports based on high-resolution photos showing cockpit damage from likely 30 millimeter air-to-air cannon fire.

Eyewitnesses on the ground saw a Ukrainian warplane trailing MH17. Russian radar tracked a Ukrainian SU-25 jet fighter within three km of the fated aircraft.

An unsatisfactorily answered question is why Ukrainian air traffic control let MH17 overfly a war zone. Other commercial airliners avoided it for obvious reasons.

Did Kiev authorities deliberately put MH17 in harm’s way to down it and blame Russia and Donbass freedom fighters for their crime?

Did Washington and Ukrainian fascists jointly plan the incident? Further US and EU sanctions followed plus relentless, irresponsible Putin-bashing.

DSB’s September 9 preliminary report said MH17 “broke up in the air probably as the result of structural damage caused by a large number of high-energy objects that penetrated the aircraft from outside.”

Its final report claimed a missile was launched from an Eastern Ukraine 320 square km area without pinpointing the launch site.

Its chairman, Tjibbe Joustra, suggested it came from rebel-held territory without specifically saying so. He claimed “Flight MH17 crashed as a result of the detonation of a warhead outside the airplane against the left-hand side of the cockpit. This warhead fits the kind of missile that is installed in the BUK surface-to-air missile system.”

It was fired from “an area where the borders have fluctuated a lot, but it’s a territory where the pro-Russian rebels have laid down the law.”

A White House statement ludicrously called DSB’s report an “important milestone in the effort to hold accountable those responsible.”

A criminal investigation is underway. Dutch Prime Minister insultingly asked Russia for “complete cooperation.” The DSB ignored key Moscow supplied evidence.

Putin spokesman Dmitry Peskov stressed it, saying: “There are facts delivered by the Russian side that for unclear reasons are being apparently ignored.”

Moscow “repeatedly expressed its disappointment over the lack of proper level of cooperation and engagement of the Russian experts into the investigation.”

Russia’s Roasaviation deputy head Oleg Storchevoy accused the DSB of ignoring “comprehensive information” presented by Moscow, suggesting willful coverup – in a letter to the International Civil Aviation Association (ICAA).

Russian arms manufacturer Almaz-Antey presented its own findings, based on exhaustive study and sophisticated simulations of what likely happened, disputing DSB’s conclusions, saying MH17 wasn’t downed from rebel-held territory.

CEO Yan Novikov said an older, out-of-date Buk missile (last produced in 1986), no longer used by Russia, still used by Ukraine, downed MH17. DSB members ignored Almaz-Antey’s findings.

The incident occurred on July 17, 2014. The instant knee-jerk reaction from Washington, other Western capitals, and go-along media scoundrels (still unchanged) was “Russia did it” – despite no evidence suggesting it then or now.

A sampling of headlines following release of the DSB’s final report include the following:

New York Times: “Malaysia Airlines Flight 17 Most Likely Hit by Russian-Made Missile, Inquiry Says”

Washington Post: “The Latest: Ex-war crimes judge: Dutch report refutes Russia”

Wall Street Journal: “Dutch Investigators Say MH17 Was Downed by Russian-Made Missile”

Los Angeles Times: “Malaysia Airlines Flight 17: Report says Russian-made missile system downed jet”

Chicago Tribune: “Dutch Safety Board: Russian-made Buk missile downed MH17 in Ukraine”

BBC: “MH17 Ukraine disaster: Dutch Safety Board blames (Russian-made Buk) missile”

The disturbing innuendo from all these headlines implies Russian-made means Russian-launched.

It bears repeating what should be clear to everyone. Russia DID NOT down MH17 – nor Donbass freedom fighters. Kiev fascists, very likely complicit with Washington, were responsible, wanting Putin blamed for their crime.

 

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

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