Category Archives: Neoliberalism

Israel Lobby Rebuts Omar’s Claims About Its Immense Influence By Exerting Its Immense Influence

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By Caitlin Johnstone

Source: CaitlinJohnstone.com

In response to criticisms made by Congresswoman Ilhan Omar that US political leaders have too much allegiance to Israel and its lobbying groups, House Democrats have put forward an entire House resolution in accordance with demands made by AIPAC and the Anti-Defamation League.

“The backlash [over Omar’s comments] continued on Monday, as the Anti-Defamation League wrote a letter to Pelosi calling for a House resolution to specifically reject what the organization calls Omar’s ‘latest slur,’” Politico reports. “‘We urge you and your colleagues to send the unambiguous message that the United States Congress is no place for hate,’ the group’s CEO, Jonathan Greenblatt, wrote in a letter.”

“The charge of dual loyalty not only raises the ominous specter of classic anti-Semitism, but it is also deeply insulting to the millions upon millions of patriotic Americans, Jewish and non-Jewish, who stand by our democratic ally, Israel,” tweeted the Israel lobbying group AIPAC on Friday in response to Omar’s comments.

“I hope @AIPAC isn’t too angry that it took Democratic House leaders almost 48 whole hours to do what they’re told to condemn their own member and will instead be understanding that it was a weekend and that’s what caused the delay,” snarked journalist Glenn Greenwald in response to the news of the House resolution.

US politicians of all faiths and in both parties have indeed been falling all over themselves in a mad scramble to tell the freshman congresswoman that she is wrong and evil for suggesting that there is undue loyalty to Israel among US politicians.

“It is disturbing that Rep. Omar continues to perpetuate hurtful anti-Semitic stereotypes that misrepresent our Jewish community,” tweeted California Congressman Juan Vargas, who is not Jewish. “Additionally, questioning support for the U.S.-Israel relationship is unacceptable,” Vargas continued, inadvertently re-stating Omar’s original argument.

“But serious question: How is it anti-Semitic to question Christian Republican allegiance to Israel?” asked journalist Rania Khalek in response to the controversy. “Because it’s people like Rep. Kevin McCarthy and Sen. Marco Rubio who Ilhan Omar and Rashida Tlaib were initially called anti-Semitic for challenging on loyalty to Israel.”

It is indeed interesting that the label “antisemitism” is being pinned on an argument directed at mostly non-Jewish lawmakers and not at Jews at all. It is also interesting that the House resolution’s current text twists that reality on its head by falsely implying that the comments were directed at Jewish politicians. The most Omar-specific parts of the resolution read as follows:

Whereas the definition further includes ‘‘accusing Jewish citizens of being more loyal to Israel, or to the alleged priorities of Jews worldwide, than to the interests of their own nations’’;

Whereas the myth of dual loyalty, including allegations that Jews should be suspected of being disloyal neighbors or citizens, has been used to marginalize and persecute the Jewish people for centuries for being a stateless minority;

Whereas accusing Jews of dual loyalty because they support Israel, whether out of a religious connection, a commitment to Jewish self-determination after millennia of persecution, or an appreciation for shared values and interests, suggests that Jews cannot be patriotic Americans and trusted neighbors, when Jews have served our Nation since its founding, whether in public life or military service;

Whereas accusations of dual loyalty generally have an insidious, bigoted history, including (1) the discriminatory internment of Americans of Japanese descent during World War II on the basis of race; (2) the Dreyfuss affair; when Alfred Dreyfuss, a Jewish French artillery captain was falsely convicted of passing secrets to Germany based on his Jewish background; (3) when the loyalty of President John F. Kennedy was questioned because of his Catholic faith; and (4) the post-9/11 conditions faced by Muslim-Americans in the United States, including unfounded, vicious attacks on and threats to Muslim-American Members of Congress;

Omar’s comments have nothing to do with Jews, Judaism or Jewishness, but with the geopolitical entanglements between the US and a nation which currently serves as an outpost for US military agendas in the Middle East. It’s a basic, unassailable fact that the agenda to maintain this relationship holds immense sway in America’s capitol, which is why the only arguments you see against it are fallacious, dishonest, irrelevant, or even prove it to be true.

“It is so disingenuous of some of these members of Congress who are lining up to condemn these questioning voices as if they have no campaign finance interest in the outcome,” former congressman Brian Baird told the New York Times today. “If one dares to criticize Israel or dares to criticize AIPAC, one gets branded anti-Semitic, and that’s a danger to a democratic republic.”

Ilhan Omar has sparked one of the most interesting conversations happening in America today, and the smear campaign against her has nothing to do with fighting antisemitism, but with silencing that conversation. The social engineers are not interested in fighting religious bigotry, they are interested in shutting her up.

In an increasingly neoliberalism-weary world, the old smear tactics of labeling a dissident voice a “communist” or a “socialist” don’t pack the kind of punching power they used to, so new ones are needed. The propagandists have been field testing them for a while now, and whenever a successful prototype rolls off the conveyor belt you quickly see it shipped around the world. Smears of Kremlin servitude found purchase in the US, and it wasn’t long before we saw the BBC posing an image of Labour leader Jeremy Corbyn against the backdrop of the Kremlin wearing what was made to resemble a Soviet-era hat. Antisemitism smears found purchase against Corbyn in the UK, and it wasn’t long before we saw those same smear tactics used across the pond against Ilhan Omar. If an imperial smear field tests well in our new political climate, you can be certain you’ll see it used elsewhere within the empire before long.

https://twitter.com/PrettyBadLefty/status/1102748288309231618

This bogus concern trolling about antisemitism has always been about smearing, and the smearing has always been about narrative control. If they can manipulate the public into distrusting someone who voices a dissenting narrative, they can keep that dissenting narrative from entering the bloodstream of mainstream consciousness. The need to keep a nuclear-armed branch of the US-centralized empire in the heart of the most crucial strategic location on earth is too important for our rulers to allow its fate to be left in the hands of the democratic process, so they control the narrative about it with extreme aggression and smear anyone who questions it. That’s all this has ever been.

Bust the Trust: Now is the Time to Break Up Amazon

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By Andy Laties with additional reporting by Sander Hicks

Source: The New York Megaphone

Standing at the cash register at an Upper West Side independent bookstore I used to run, I once noted the frequent passage of cars painted all over with Amazon’s “And You’re Done” logo. These same-day delivery vehicles were Amazon’s way of pushing back against the resurgence of New York City independent bookselling in progress. Soon, the cars were joined by a Columbus Circle location of the Amazon Books chain. That brick-and-mortar store gave lie to Amazon’s long-standing rhetoric that physical bookstores were doomed.

I have competed with Amazon for twenty years. A couple years ago, we indies were finally winning. 2015 was a great year. More independent stores were opening than closing: Books Are Magic, Greenlight, Word Up, Stories, Archestratus Books & Foods, Astoria Bookshop and Quimby’s. New locations for Book Culture, McNally Jackson, WORD and Books of Wonder were in the works. That trend was mirrored nationally. While our numbers had fallen from 4,000 to 1,500, between 1995 and 2005, now we were pushing 2,000 bookstores again.

Why do indy bookstores matter so much? Well, here’s one way to put it, from the writer Ocean Vuong, “The way I see it, whenever someone walks into a bookstore, they are walking into the future of their cultural and intellectual life. A bookseller collaborates with who you are in order to show you a way forward towards more of yourself, a way you might not have known existed for you–but is still entirely your own. Amazon, with its algorithms, can only show you where you’ve been, can only give you the calcified mirror of your past. In a bookstore, you get a human being who is also a mapmaker of possibility.”

 

A PEOPLE’S HISTORY OF AMAZON

Amazon itself had started as a New York City project. But retailers don’t collect sales tax on out-of-state shipments. So when hedge fund boy wonder Jeff Bezos rounded up his one million in in start-up capital, he left New York City behind. He launched his company in the lightly-populated Washington State. Bezos planned a national mail-order operation that wouldn’t have to collect sales tax in any other state, especially populous New York and California. Thus, most customers would enjoy a six percent or more cost reduction on each sale.

We indie businesses fought together for twenty years to force Amazon to collect sales tax. And we won. I’m proud of what we fierce indies did to force Amazon to pay sales tax. These taxes fund public services like Medicaid and the local fire department. But Amazon had evolved during the battle, and like that strangling kudzu vine you thought you killed last Fall, it grew back even bigger in the Spring. Instead of dying, Amazon turned into that monster plant from Little Shop of Horrors.

After our victories at the state and national levels, there was no longer any reason for Bezos to base his company in Seattle. That’s one reason Amazon is expanding with a big new HQ2 planned for Crystal City, VA. They recently planned to come back to New York City, but chickened out due to the public criticisms about Amazon’s lucrative tax breaks.

Ten years ago, Amazon used to be an innovative book-seller online. Today, They work for CIA, NSA, they help do facial recognition for ICE. They are bidding to create a “new brain” for the Pentagon, in the little-known “JEDI” program. With Jeff Bezos’s ownership of the Washington Post, they are simultaneously powerful DC lobbyists, defense contractors, spies, and a leading DC media vehicle. Amazon is one juggernaut of unbridled corporate and war-making power.

Amazon developed its Amazon Web Services (AWS), the highly profitable, cloud-hosting division, out of the software and hardware infrastructure that runs its online retail operation. Recent headlines tell the tale of how Amazon monetized AWS. Technology Review reported, “Amazon is the Invisible Backbone Behind ICE’s Immigration Crackdown” And Business Insider let us know that “Amazon is Launching a ‘Secret’ Cloud Service for the CIA.” “‘Alexa, Drop a Bomb’: Amazon Wants in on US Warfare” reveals the plans between Amazon and the Pengaton, for the new JEDI program, as reported by Truthout.

The new Amazon wants to become a leading merchant of death, specializing in robotic drones, while moonlighting as web host for ICE and CIA. Its planned “Washington D.C. footprint” is just across the highway from the Pentagon. The failed effort to come into Queens was offering “twenty-five-thousand jobs.” But who can count how many jobs Amazon has killed, and how many retail stores have closed, due to Amazon artificially lowering prices? (A recent article in Yale Law School journal makes the case that Amazon might be on the road to being a monopoly, since it artificially lowers prices to kill competition.) Amazon promises to add jobs in NYC, but recently committed to making those jobs non-union. Workers at Amazon warehouses complain of onerous conditions at low wages, in which bathroom breaks are rare, and workers sometimes have to urinate into plastic bottles.

Amazon is super convenient. It’s true. But Amazon’s retail customers will feel angst and regret once they learn their dollars pay for robotic drone warfare and racial profiling of immigrants.

Recently, the American Booksellers Association reported that Amazon could be a monopoly. They control 75% of all online retail bookselling, the way that Standard Oil controlled the oil industry, before it was broken up as a monopoly, in 1911.

Let’s resist this new version of the Amazon monopoly. Amazon is an arms dealer and corporate spy. Let’s advocate that the Federal Trade Commission dismember the Amazon octopus. Let’s support a movement that is fired up to do “trust-busting.”

For our safety, it’s time to break up Amazon.

 

Andrew Laties is the author of Rebel Bookseller: Why Indie Businesses Stand for Everything You Want to Fight For, from Free Speech to Buying Local to Building Communities. He currently co-owns Book and Puppet Company, in Easton, Pennsylvania.

A Nonviolent Strategy to Defeat a US Military Invasion of Venezuela

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By Robert J. Burrowes

To the People of Venezuela

Recently I wrote an article explaining how you could defeat, using nonviolent strategy, the US coup attempt that is taking place in your country. See ‘A Nonviolent Strategy to Defeat the US Coup Attempt in Venezuela’.

I would like to complement that article by now briefly explaining how you can also defeat a military invasion by the United States and any collaborating invaders by using a strategy of nonviolent defense as well.

In making this suggestion, I acknowledge the extraordinary difficulties inflicted on Venezuela by the US sanctions imposed over many years as part of its ‘undeclared war against Venezuela’ (partly designed to destroy its progressive social banking model), explained straightforwardly by Ellen Brown in her article ‘The Venezuela Myth Keeping Us From Transforming Our Economy’ as well as alternative proposals to resolve the crisis, ranging from that by several governments to facilitate dialogue between the Venezuelan government and the opposition – see, for example, ‘Russia Proposes Venezuelan “Peaceful Measures” Initiative to UN’ – to Stephen Lendman’s suggestion that a peacekeeping force be deployed to Venezuela by such countries as Russia, China and non-aligned nations. See ‘Save Venezuelan Sovereignty: Oil Economy Destabilized. Peace-keeping Role by Russia, China, Non-alligned Nations?’

I understand that your first reaction to the idea of a strategy of nonviolent defense might be one of scepticism or even outright disbelief. However, if you are willing to consider what I write below, I will briefly explain why a strategy of nonviolent defense is theoretically and empirically sound, has often been successful in a wide range of contexts in the past, and why I believe it is important and how it can be done.

Of course, I am well aware that this history of successful nonviolent defense is little known because it has been, and still is, suppressed. And yet the history of nonviolent resistance in many diverse contexts clearly demonstrates that a strategy of nonviolent defense has the best chance of defending your country while minimizing the death and destruction in doing so (which does not mean that it would be without cost).

Moreover, if you want to read many carefully documented historical accounts of nonviolent struggles that were successful against military opponents, including those that were ruthlessly violent, you can do so in The Strategy of Nonviolent Defense: A Gandhian Approach. The book also carefully explains why these successes occurred without incurring heavy casualties on the defense, particularly in comparison to military campaigns and guerrilla struggles.

In my view then, the idea of implementing a strategy of nonviolent defense is important to consider for two essential reasons.

First, you are dealing with an opponent that is insane – see ‘The Global Elite is Insane Revisited’ with a more detailed explanation in ‘Why Violence?’ and ‘Fearless Psychology and Fearful Psychology: Principles and Practice’ – incredibly ignorant – see this interview of US Secretary of State, Mike Pompeo ‘Venezuelan military will realize Maduro’s time is up: Mike Pompeo’ which is critiqued in these articles ‘Pompeo: America “obligated” to fight “Hezbollah” in Venezuela to save “duly elected” Guaido’ and ‘Pompeo Attempts to Link Iran, Hezbollah to Crisis in Venezuela’ – and grotesquely violent – see ‘The History – and Hypocrisy – of US Meddling in Venezuela’ and Killing Hope: US Military and CIA Interventions Since World War II – that, history teaches us, is highly likely to destroy your country to gain the geostrategic advantage and natural resources that control of your country offers, as the people of Iraq and Libya, for example, can testify.

And second: no matter how committed and courageous are the (loyal) members of your military forces and civilian militia (the National Bolivarian Militia of Venezuela), and the military forces of any allies who will stand with you in the defense of Venezuela, even a ‘successful’ outcome, such as that which Syria may be on the verge of ‘celebrating’, will only come at enormous cost in terms of human lives, infrastructure (including national heritage), ecological impact and time, all of which can be far more gainfully employed to continue building Venezuela, including overcoming outstanding problems, as you decide.

The Background

As I know that you are well aware, given the declared interest of the US elite in stealing your natural resources, including oil – see, for example, ‘“Good for business”: Trump adviser Bolton admits US interest in Venezuela’s “oil capabilities”’ and ‘Regime Change for Profit: Chevron, Halliburton Cheer On US Venezuela Coup’ – the US elite has long interfered with – see, for example, ‘US Influence in Venezuela Is Part of a Two Centuries-old Imperial Plan’ – and threatened military invasion of Venezuela to seize control of these resources in clear violation of international law. For recent examples only, see ‘Trump pressed aides on Venezuela invasion, US official says’ and ‘Time for talks “long passed”: US weaponizes aid amid push for regime change in Venezuela’.

Consequently, the US administration has finally used the pretext of an unfair election result in 2018 to call for the overthrow of your government despite the widely accepted result, verified by independent sources, and even the testimony of a former US president that your electoral system is without peer. See ‘Former US President Carter: Venezuelan Electoral System “Best in the World”’.

Moreover, the US puppet Juan Guaidó, anointed by the US to replace your elected President, has effectively indicated his support for US intervention, which clearly reveals where his loyalties lie, his willingness to now provide a pretext for a US invasion, and his complete disregard for the well-being of those Venezuelans who will inevitably be killed, injured and/or dispossessed during an invasion to support the ‘neocon regime-changers’ in Washington. See ‘Venezuela’s self-proclaimed “president” Guaido isn’t ruling out “authorizing” US intervention’ and ‘The Cynicism of Empire: Sen. Rubio Tells Venezuelans to Overthrow Their Government… or Starve!’

This threat of military intervention, as the historical record clearly demonstrates, has every prospect of being carried out. See ‘Before Venezuela: The long history of U.S. intervention in Latin America’ and ‘Overthrowing other people’s governments: The Master List’.

Despite this threat, as you are aware, President Nicolás Maduro has persisted in offering to discuss the issues arising from this conflict while also calling on the international community to ‘“Stop Trump’s insane actions!” Venezuela’s Maduro talks to RT about avoiding war’ and even writing an appeal to the people of the United States which, of course, was ignored by the corporate media so that it does not even reach a wide audience. See ‘An Open Letter to the People of the United States from President Nicolas Maduro’.

While I applaud your President for his persistent calls for dialogue to resolve this issue – for a recent example, see ‘Maduro Asks International Community to End US’s Threats of War’ – there are simply three realities that make it highly unlikely that his call will be heeded, whether by the US administration that has already rejected such a call – see ‘Time for talks “long passed”: US weaponizes aid amid push for regime change in Venezuela’ – or by the international community, a substantial section of which has already declared their support for the US puppet Juan Guaidó, who has been carefully groomed for a decade for the role he is now playing. See ‘The Making of Juan Guaidó: How the US Regime Change Laboratory Created Venezuela’s Coup Leader’.

These three realities are those I mentioned above: You are dealing with an insane, incredibly ignorant and grotesquely violent opponent: an elite that seeks geopolitical control and endless resources for profit no matter what the cost to fellow human beings and the biosphere, as the record demonstrates.

Moreover, in seeking to secure its objectives, the US elite will endeavour to control the narrative in relation to Venezuela. Hence, as you have noticed, the corporate media is lying prodigiously about Venezuela as it ‘beats the drums of war’. See, for example, ‘Dissecting the jingoistic media coverage of the Venezuela crisis’, ‘Venezuela Blitz – Part 1: Tyrants Don’t Have Free Elections’, ‘Venezuela Blitz – Part 2: Press Freedom, Sanctions And Oil’ and ‘The BBC and Venezuela: bias and lies’.

For you and those of us outside Venezuela who have some knowledge of your country’s history, we are well aware of the enormous gains made by the Bolivarian movement, despite the enormously damaged country that the movement inherited. See, for example, ‘Venezuela: From Oil Proxy to the Bolivarian Movement and Sabotage’.

This progress, of course, does not mean that all problems have been resolved, most of which have been exacerbated by the sanctions imposed in recent years by the United States government. See, for example, the report by Alfred de Zayas on behalf of the United Nations Human Rights Council – ‘Report of the Independent Expert on the promotion of a democratic and equitable international order on his mission to the Bolivarian Republic of Venezuela and Ecuador’ – which identified the crisis the US ‘economic warfare’ was precipitating. See ‘Former UN Rapporteur: US Sanctions Against Venezuela Causing Economic and Humanitarian Crisis’.

Defending Against a US Military Invasion of Venezuela

So, while your effort to defeat the coup attempt continues, even if the United States military invades Venezuela before or after this issue is resolved, you have the powerful option of resisting any invasion effectively by employing a strategy of nonviolent defense.

I have explained the essential points of this strategy on the website Nonviolent Defense/Liberation Strategy. The pages of this website provide clear guidance on how to easily plan and then implement the twelve components of this strategy.

If you like, you can see a diagrammatic representation of this strategy by looking at the Nonviolent Strategy Wheel.

And on the Strategic Aims page you can see the basic list of 30 strategic goals necessary to defeat a military invasion. These strategic goals can easily be adopted, modified and/or added to if necessary, in accordance with your precise circumstances as you decide.

If you want to read a straightforward account of how to plan and conduct a nonviolent tactic so that it has strategic impact, you can do so here: ‘Nonviolent Action: Why and How it Works’.

This will require awareness of the difference between ‘The Political Objective and Strategic Goal of Nonviolent Actions’.

And, to ensure that the military violence directed against you is made as difficult as possible to perpetrate and, in many cases, does not eventuate, you are welcome to consider the 20 points designed to ensure that you are ‘Minimizing the Risk of Violent Repression’ whenever you take nonviolent action to defend yourselves when repression is a risk. This information is useful for both neutralizing violent provocateurs but also to ensure that invading military forces are compelled to deal with complex emotional and moral issues that do not arise against a violent opponent who is threatening them, and which will lead some, and perhaps very many, to desist as the historical record clearly documents. Again, for many examples, see The Strategy of Nonviolent Defense: A Gandhian Approach.

Conclusion

The US government and its sycophantic allies might not invade Venezuela. It may transpire that the diplomatic and other efforts of your government to defeat the coup and avert a US-led military invasion of Venezuela will be successful. There is also a fracturing of the opposition forces within Venezuela, in several ways, which works against the success of ongoing efforts to remove your government. See ‘Venezuela Regime Change “Made in the USA”’.

However, the extensive historical evidence of US interventions in violation of international law, the geostrategic and natural resource advantages that will accrue to the US elite from an invasion that removes your elected government, the anointment of a puppet president of Venezuela, the recent posturing and declarations by key members of the US administration and many US-allied governments, and the manufacture of public acquiescence by the corporate media all point heavily in the direction of invasion. And, as you are well aware, it is wise to treat this possibility seriously.

The elite conducting these preparatory moves is insane and, if it attacks Venezuela, there is a serious risk it will destroy your country as it has destroyed Iraq and Libya, especially if it meets significant military resistance. Their insanity precludes them caring about you, the people of Venezuela (even as they present any intervention as ‘humanitarian’). See ‘Love Denied: The Psychology of Materialism, Violence and War’. They care about nothing more than geostrategic advantage, eliminating progressive elements of your society’s development, and seizing your natural resources from which they can profit enormously.

Nevertheless, a strategy of nonviolent defense would enable you to defend yourselves and enable every last member of your population, irrespective of age and ability, to be strategically involved, as well as any solidarity activists overseas. It would also minimize the loss of life and destruction inflicted on your country.

Importantly, even if you suffer setbacks, unless and until you accept outright defeat, your strategy of nonviolent defense, ongoingly refined to maintain effective strategic coordination and to retain the initiative, will ultimately prevail.

As always, however, whether or not you decide to consider/adopt my suggestion, you have my solidarity.

 

Biodata: Robert J. Burrowes has a lifetime commitment to understanding and ending human violence. He has done extensive research since 1966 in an effort to understand why human beings are violent and has been a nonviolent activist since 1981. He is the author of ‘Why Violence?’ His email address is flametree@riseup.net and his website is here.

The Stomach-Churning Violence of the Agrochemical Oligopoly

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By Colin Todhunter

Source: OffGuardian

As humans, we have evolved with the natural environment over millennia. We have learned what to eat and what not to eat, what to grow and how to grow it and our diets have developed accordingly. We have hunted, gathered, planted and harvested. Our overall survival as a species has been based on gradual, emerging relationships with the seasons, insects, soil, animals, trees and seeds. And out of these relationships, we have seen the development of communities whose rituals and bonds have a deep connection with food production and the natural environment.

However, over the last couple generations, agriculture and food production has changed more than it had done over previous millennia. These changes have involved massive social upheaval as communities and traditions have been uprooted and have entailed modifying what we eat, how we grow our food and what we apply to it. All of this has been driven by geopolitical concerns and powerful commercial interests with their proprietary chemicals and patented seeds. The process of neoliberal globalisation is accelerating the process as farmers are encouraged to produce for global supply chains dominated by transnational agribusiness.

Certain crops are now genetically engineered, the range of crops we grow has become less diverse, synthetic biocides have been poured on crops and soil and our bodies have been subjected to a chemical bombardment. We have arrived at a point where we have lost touch with our deep-rooted microbiological and social connection with nature and have developed an arrogance that has placed ‘man’ above the environment and all other species. One of the consequences is that we have paid an enormous price in terms of the consequent social, environmental and health-related devastation.

Despite the promise and potential of science, it has too often in modern society become a tool of vested interests, an ideology wrapped in the vestiges of authority and the ‘superstition’ that its corporate-appointed priesthood should not be challenged nor questioned. Instead of liberating humankind, it has now too often become a tool of deception in the hands of agribusiness conglomerates which make up the oligopoly that controls what is an increasingly globalised system of modern food and agriculture.

These corporations have successfully instituted the notion that the mass application of biocides, monocropping and industrial agriculture are necessary and desirable. They are not. However, these companies have used their science and propaganda to project certainty in order to hide the fact that they have no real idea what their products and practices are doing to human health or the environment (and in cases when they do know, they do their best to cover it up or hide behind the notion of ‘commercial confidentiality’).

Based on their limited, tainted studies and co-opted version of science, they say with certainty that, for example, genetically engineered food and glyphosate are ‘safe’. And when inconvenient truths do emerge, they will mobilise their massive lobbying resources to evade regulations, they will seek to hide the dangers of their products or they will set out to destroy scientists whose findings challenge their commercial bottom line.

Soil microbiologists are still trying to fully comprehend soil microbes and how they function as anintegrated network in relation to plants. The agrochemical sector has little idea of how their biocides have affected soils. It merely churns out public relations spin that their inputs are harmless for soil, plants and human health. Such claims are not based on proper, in-depth, long-term studies. They are based on a don’t look, don’t find approach or a manipulation of standards and procedures that ensure their products make it on to the commercial market and stay there.

And what are these biocides doing to us as humans? Numerous studies have linked the increase in pesticide us with spiralling rates of ill health. Kat Carrol of the National Health Federation is concerned about the impacts on human gut bacteria that play a big role in how organs function and our neurological health. The gut microbiome can contain up to six pounds of bacteria and is what Carroll calls ‘human soil’. She says that with their agrochemicals and food additives, powerful companies are attacking this ‘soil’ and with it the sanctity of the human body.

And her concerns seem valid. Many important neurotransmitters are located in the gut. Aside from affecting the functioning of major organs, these transmitters affect our moods and thinking. Feed gut bacteria a cocktail of biocides and is it any surprise that many diseases are increasing?

For instance, findings published in the journal ‘Translational Psychiatry’ provide strong evidence that gut bacteria can have a direct physical impact on the brain. Alterations in the composition of the gut microbiome have been implicated in a wide range of neurological and psychiatric conditions, including autism, chronic pain, depression, and Parkinson’s Disease.

Environmental campaigner Dr Rosemary Mason has written extensively on the impacts of agrochemicals (especially glyphosate) on humans, not least during child and adolescent development. In her numerous documents and papers, she cites a plethora of data and studies that link the use of agrochemicals with various diseases and ailments. She has also noted the impact of these chemicals on the human gut microbiome.

The science writer Mo Costandi discusses the importance of gut bacteria and their balance. In adolescence the brain undergoes a protracted period of heightened neural plasticity, during which large numbers of synapses are eliminated in the prefrontal cortex and a wave of ‘myelination’ sweeps across this part of the brain. These processes refine the circuitry in the prefrontal cortex and increase its connectivity to other brain regions. Myelination is also critical for normal, everyday functioning of the brain. Myelin increases a nerve fibre’s conduction velocity by up to a hundred times, and so when it breaks down, the consequences can be devastating.

Other recent work shows that gut microbes control the maturation and function of microglia, the immune cells that eliminate unwanted synapses in the brain; age-related changes to gut microbe composition might regulate myelination and synaptic pruning in adolescence and could, therefore, contribute to cognitive development. Upset those changes, and, As Mason argues, there are going to be serious implications for children and adolescents. Mason places glyphosate at the core of the ailments and disorders currently affecting young people in Wales and the UK in general.

Yet we are still being subjected to an unregulated cocktail of agrochemicals which end up interacting with each other in the gut. Regulatory agencies and governments appear to work hand in glove with the agrochemical sector.

Carol Van Strum has released documents indicating collusion between the manufacturers of dangerous chemicals and regulatory bodies. Evaggelos Vallianatos has highlighted the massive fraud surrounding the regulation of biocides and the wide scale corruption at laboratories that were supposed to test these chemicals for safety. Many of these substances were not subjected to what was deemed proper testing in the first place yet they remain on the market. The late Shiv Chopra also highlighted how various dangerous products were allowed on the commercial market and into the food chain due to collusion between these companies and public officials.

Powerful transnational corporations are using humanity as their collective guinea pig. But those who question them, or their corporate science, are automatically labelled anti-science and accused of committing crimes against humanity because they are preventing their products from being commercialised ‘to help the poor or hungry’. Such attacks on critics by company mouthpieces who masquerade as public officials, independent scientists or independent journalists are mere spin. They are, moreover, based on the sheer hypocrisy that these companies (owned and controlled by elite interests) have humanity’s and the environment’s best interests at heart.

Many of these companies have historically profited from violence. Unfortunately, that character of persists. They directly profit on the back of militarism, whether as a result of the US-backed ‘regime change’ in Ukraine or the US invasion of Iraq. They also believe they can cajole (poison) nature by means of chemicals and bully governments and attack critics, while rolling out propaganda campaigns for public consumption.

Whether it involves neocolonialism and the destruction of indigenous practices and culturesunder the guise of ‘development’, the impoverishment of farmers in India, the twisting and writing of national and international laws, the destruction of rural communities, the globalisation of bad food and illness, the deleterious impacts on health and soil, the hollowing out of public institutions and the range of human rights abuses we saw documented during The Monsanto Tribunal, what we are witnessing is structural violence in many forms.

Pesticides are in fact “a global human rights concern” and are in no way vital to ensuring food security. Ultimately, what we see is ignorance, arrogance and corruption masquerading as certainty and science.

…when we wound the planet grievously by excavating its treasures – the gold, mineral and oil, destroy its ability to breathe by converting forests into urban wastelands, poison its waters with toxic wastes and exterminate other living organisms – we are in fact doing all this to our own bodies… all other species are to be enslaved or driven to extinction if need be in the interests of human ‘progress’… we are part of the same web of life –where every difference we construct artificially between ‘them’ and ‘us’ adds only one more brick to the tombstone of humankind itself.”
from Micobes of the World Unite! by Satya Sager

Saker interview with Michael Hudson on Venezuela, February 7, 2019

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By The Saker and Michael Hudson

Source: The Saker

Introduction: There is a great deal of controversy about the true shape of the Venezuelan economy and whether Hugo Chavez’ and Nicholas Maduro’s reform and policies were crucial for the people of Venezuela or whether they were completely misguided and precipitated the current crises.  Anybody and everybody seems to have very strong held views about this.  But I don’t simply because I lack the expertise to have any such opinions.  So I decided to ask one of the most respected independent economists out there, Michael Hudson, for whom I have immense respect and whose analyses (including those he co-authored with Paul Craig Roberts) seem to be the most credible and honest ones you can find.  In fact, Paul Craig Roberts considers Hudson the “best economist in the world“!
I am deeply grateful to Michael for his replies which, I hope, will contribute to a honest and objective understanding of what really is taking place in Venezuela.
The Saker

The Saker: Could you summarize the state of Venezuela’s economy when Chavez came to power?

Michael Hudson: Venezuela was an oil monoculture. Its export revenue was spent largely on importing food and other necessities that it could have produced at home. Its trade was largely with the United States. So despite its oil wealth, it ran up foreign debt.

From the outset, U.S. oil companies have feared that Venezuela might someday use its oil revenues to benefit its overall population instead of letting the U.S. oil industry and its local comprador aristocracy siphon off its wealth. So the oil industry – backed by U.S. diplomacy – held Venezuela hostage in two ways.

First of all, oil refineries were not built in Venezuela, but in Trinidad and in the southern U.S. Gulf Coast states. This enabled U.S. oil companies – or the U.S. Government – to leave Venezuela without a means of “going it alone” and pursuing an independent policy with its oil, as it needed to have this oil refined. It doesn’t help to have oil reserves if you are unable to get this oil refined so as to be usable.

Second, Venezuela’s central bankers were persuaded to pledge their oil reserves and all assets of the state oil sector (including Citgo) as collateral for its foreign debt. This meant that if Venezuela defaulted (or was forced into default by U.S. banks refusing to make timely payment on its foreign debt), bondholders and U.S. oil majors would be in a legal position to take possession of Venezuelan oil assets.

These pro-U.S. policies made Venezuela a typically polarized Latin American oligarchy. Despite being nominally rich in oil revenue, its wealth was concentrated in the hands of a pro-U.S. oligarchy that let its domestic development be steered by the World Bank and IMF. The indigenous population, especially its rural racial minority as well as the urban underclass, was excluded from sharing in the country’s oil wealth. The oligarchy’s arrogant refusal to share the wealth, or even to make Venezuela self-sufficient in essentials, made the election of Hugo Chavez a natural outcome.

The Saker: Could you outline the various reforms and changes introduced by Hugo Chavez? What did he do right, and what did he do wrong?

Michael Hudson: Chavez sought to restore a mixed economy to Venezuela, using its government revenue – mainly from oil, of course – to develop infrastructure and domestic spending on health care, education, employment to raise living standards and productivity for his electoral constituency.

What he was unable to do was to clean up the embezzlement and built-in rake-off of income from the oil sector. And he was unable to stem the capital flight of the oligarchy, taking its wealth and moving it abroad – while running away themselves.

This was not “wrong”. It merely takes a long time to change an economy’s disruption – while the U.S. is using sanctions and “dirty tricks” to stop that process.

The Saker: What are, in your opinion, the causes of the current economic crisis in Venezuela – is it primarily due to mistakes by Chavez and Maduro or is the main cause US sabotage, subversion and sanctions?

Michael Hudson: There is no way that’s Chavez and Maduro could have pursued a pro-Venezuelan policy aimed at achieving economic independence without inciting fury, subversion and sanctions from the United States. American foreign policy remains as focused on oil as it was when it invaded Iraq under Dick Cheney’s regime. U.S. policy is to treat Venezuela as an extension of the U.S. economy, running a trade surplus in oil to spend in the United States or transfer its savings to U.S. banks.

By imposing sanctions that prevent Venezuela from gaining access to its U.S. bank deposits and the assets of its state-owned Citco, the United States is making it impossible for Venezuela to pay its foreign debt. This is forcing it into default, which U.S. diplomats hope to use as an excuse to foreclose on Venezuela’s oil resources and seize its foreign assets much as Paul Singer hedge fund sought to do with Argentina’s foreign assets.

Just as U.S. policy under Kissinger was to make Chile’s “economy scream,” so the U.S. is following the same path against Venezuela. It is using that country as a “demonstration effect” to warn other countries not to act in their self-interest in any way that prevents their economic surplus from being siphoned off by U.S. investors.

The Saker: What in your opinion should Maduro do next (assuming he stays in power and the USA does not overthrow him) to rescue the Venezuelan economy?

Michael Hudson: I cannot think of anything that President Maduro can do that he is not doing. At best, he can seek foreign support – and demonstrate to the world the need for an alternative international financial and economic system.

He already has begun to do this by trying to withdraw Venezuela’s gold from the Bank of England and Federal Reserve. This is turning into “asymmetrical warfare,” threatening what to de-sanctify the dollar standard in international finance. The refusal of England and the United States to grant an elected government control of its foreign assets demonstrates to the entire world that U.S. diplomats and courts alone can and will control foreign countries as an extension of U.S. nationalism.

The price of the U.S. economic attack on Venezuela is thus to fracture the global monetary system. Maduro’s defensive move is showing other countries the need to protect themselves from becoming “another Venezuela” by finding a new safe haven and paying agent for their gold, foreign exchange reserves and foreign debt financing, away from the dollar, sterling and euro areas.

The only way that Maduro can fight successfully is on the institutional level, upping the ante to move “outside the box.” His plan – and of course it is a longer-term plan – is to help catalyze a new international economic order independent of the U.S. dollar standard. It will work in the short run only if the United States believes that it can emerge from this fight as an honest financial broker, honest banking system and supporter of democratically elected regimes. The Trump administration is destroying illusion more thoroughly than any anti-imperialist critic or economic rival could do!

Over the longer run, Maduro also must develop Venezuelan agriculture, along much the same lines that the United States protected and developed its agriculture under the New Deal legislation of the 1930s – rural extension services, rural credit, seed advice, state marketing organizations for crop purchase and supply of mechanization, and the same kind of price supports that the United States has long used to subsidize domestic farm investment to increase productivity.

The Saker: What about the plan to introduce a oil-based crypto currency? Will that be an effective alternative to the dying Venezuelan Bolivar?

Michael Hudson: Only a national government can issue a currency. A “crypto” currency tied to the price of oil would become a hedging vehicle, prone to manipulation and price swings by forward sellers and buyers. A national currency must be based on the ability to tax, and Venezuela’s main tax source is oil revenue, which is being blocked from the United States. So Venezuela’s position is like that of the German mark coming out of its hyperinflation of the early 1920s. The only solution involves balance-of-payments support. It looks like the only such support will come from outside the dollar sphere.

The solution to any hyperinflation must be negotiated diplomatically and be supported by other governments. My history of international trade and financial theory, Trade, Development and Foreign Debt, describes the German reparations problem and how its hyperinflation was solved by the Rentenmark.

Venezuela’s economic-rent tax would fall on oil, and luxury real estate sites, as well as monopoly prices, and on high incomes (mainly financial and monopoly income). This requires a logic to frame such tax and monetary policy. I have tried to explain how to achieve monetary and hence political independence for the past half-century. China is applying such policy most effectively. It is able to do so because it is a large and self-sufficient economy in essentials, running a large enough export surplus to pay for its food imports. Venezuela is in no such position. That is why it is looking to China for support at this time.

The Saker: How much assistance do China, Russia and Iran provide and how much can they do to help? Do you think that these three countries together can help counter-act US sabotage, subversion and sanctions?

Michael Hudson: None of these countries have a current capacity to refine Venezuelan oil. This makes it difficult for them to take payment in Venezuelan oil. Only a long-term supply contract (paid for in advance) would be workable. And even in that case, what would China and Russia do if the United States simply grabbed their property in Venezuela, or refused to let Russia’s oil company take possession of Citco? In that case, the only response would be to seize U.S. investments in their own country as compensation.

At least China and Russia can provide an alternative bank clearing mechanism to SWIFT, so that Venezuela can by pass the U.S. financial system and keep its assets from being grabbed at will by U.S. authorities or bondholders. And of course, they can provide safe-keeping for however much of Venezuela’s gold it can get back from New York and London.

Looking ahead, therefore, China, Russia, Iran and other countries need to set up a new international court to adjudicate the coming diplomatic crisis and its financial and military consequences. Such a court – and its associated international bank as an alternative to the U.S.-controlled IMF and World Bank – needs a clear ideology to frame a set of principles of nationhood and international rights with power to implement and enforce its judgments.

This would confront U.S. financial strategists with a choice: if they continue to treat the IMF, World Bank, ITO and NATO as extensions of increasingly aggressive U.S. foreign policy, they will risk isolating the United States. Europe will have to choose whether to remain a U.S. economic and military satellite, or to throw in its lot with Eurasia.

However, Daniel Yergin reports in the Wall Street Journal (Feb. 7) that China is trying to hedge its bets by opening a back-door negotiation with Guaido’s group, apparently to get the same deal that it has negotiated with Maduro’s government. But any such deal seems unlikely to be honored in practice, given U.S. animosity toward China and Guaido’s total reliance on U.S. covert support.

The Saker: Venezuela kept a lot of its gold in the UK and money in the USA. How could Chavez and Maduro trust these countries or did they not have another choice? Are there viable alternatives to New York and London or are they still the “only game in town” for the world’s central banks?

Michael Hudson: There was never real trust in the Bank of England or Federal Reserve, but it seemed unthinkable that they would refuse to permit an official depositor from withdrawing its own gold. The usual motto is “Trust but verify.” But the unwillingness (or inability) of the Bank of England to verify means that the formerly unthinkable has now arrived: Have these central banks sold this gold forward in the post-London Gold Pool and its successor commodity markets in their attempt to keep down the price so as to maintain the appearance of a solvent U.S. dollar standard.

Paul Craig Roberts has described how this system works. There are forward markets for currencies, stocks and bonds. The Federal Reserve can offer to buy a stock in three months at, say, 10% over the current price. Speculators will by the stock, bidding up the price, so as to take advantage of “the market’s” promise to buy the stock. So by the time three months have passed, the price will have risen. That is largely how the U.S. “Plunge Protection Team” has supported the U.S. stock market.

The system works in reverse to hold down gold prices. The central banks holding gold can get together and offer to sell gold at a low price in three months. “The market” will realize that with low-priced gold being sold, there’s no point in buying more gold and bidding its price up. So the forward-settlement market shapes today’s market.

The question is, have gold buyers (such as the Russian and Chinese government) bought so much gold that the U.S. Fed and the Bank of England have actually had to “make good” on their forward sales, and steadily depleted their gold? In this case, they would have been “living for the moment,” keeping down gold prices for as long as they could, knowing that once the world returns to the pre-1971 gold-exchange standard for intergovernmental balance-of-payments deficits, the U.S. will run out of gold and be unable to maintain its overseas military spending (not to mention its trade deficit and foreign disinvestment in the U.S. stock and bond markets). My book on Super-Imperialism explains why running out of gold forced the Vietnam War to an end. The same logic would apply today to America’s vast network of military bases throughout the world.

Refusal of England and the U.S. to pay Venezuela means that other countries means that foreign official gold reserves can be held hostage to U.S. foreign policy, and even to judgments by U.S. courts to award this gold to foreign creditors or to whoever might bring a lawsuit under U.S. law against these countries.

This hostage-taking now makes it urgent for other countries to develop a viable alternative, especially as the world de-dedollarizes and a gold-exchange standard remains the only way of constraining the military-induced balance of payments deficit of the United States or any other country mounting a military attack. A military empire is very expensive – and gold is a “peaceful” constraint on military-induced payments deficits. (I spell out the details in my Super Imperialism: The Economic Strategy of American Empire (1972), updated in German as Finanzimperium(2017).

The U.S. has overplayed its hand in destroying the foundation of the dollar-centered global financial order. That order has enabled the United States to be “the exceptional nation” able to run balance-of-payments deficits and foreign debt that it has no intention (or ability) to pay, claiming that the dollars thrown off by its foreign military spending “supply” other countries with their central bank reserves (held in the form of loans to the U.S. Treasury – Treasury bonds and bills – to finance the U.S. budget deficit and its military spending, as well as the largely military U.S. balance-of-payments deficit.

Given the fact that the EU is acting as a branch of NATO and the U.S. banking system, that alternative would have to be associated with the Shanghai Cooperation Organization, and the gold would have to be kept in Russia and/or China.

The Saker:  What can other Latin American countries such as Bolivia, Nicaragua, Cuba and, maybe, Uruguay and Mexico do to help Venezuela?

Michael Hudson: The best thing neighboring Latin American countries can do is to join in creating a vehicle to promote de-dollarization and, with it, an international institution to oversee the writedown of debts that are beyond the ability of countries to pay without imposing austerity and thereby destroying their economies.

An alternative also is needed to the World Bank that would make loans in domestic currency, above all to subsidize investment in domestic food production so as to protect the economy against foreign food-sanctions – the equivalent of a military siege to force surrender by imposing famine conditions. This World Bank for Economic Acceleration would put the development of self-reliance for its members first, instead of promoting export competition while loading borrowers down with foreign debt that would make them prone to the kind of financial blackmail that Venezuela is experiencing.

Being a Roman Catholic country, Venezuela might ask for papal support for a debt write-down and an international institution to oversee the ability to pay by debtor countries without imposing austerity, emigration, depopulation and forced privatization of the public domain.

Two international principles are needed. First, no country should be obliged to pay foreign debt in a currency (such as the dollar or its satellites) whose banking system acts to prevents payment.

Second, no country should be obliged to pay foreign debt at the price of losing its domestic autonomy as a state: the right to determine its own foreign policy, to tax and to create its own money, and to be free of having to privatize its public assets to pay foreign creditors. Any such debt is a “bad loan” reflecting the creditor’s own irresponsibility or, even worse, pernicious asset grab in a foreclosure that was the whole point of the loan.

The Saker:  Thank you very much for taking the time to reply to my questions!

The Erosion of the Middle Class — Why Americans Are Working Harder and Earning Less

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By John Liberty

Source: The Mind Unleashed

“I don’t have to tell you things are bad. Everybody knows things are bad. It’s a depression. Everybody’s out of work or scared of losing their job. The dollar buys a nickel’s worth, banks are going bust, shopkeepers keep a gun under the counter. Punks are running wild in the street and there’s nobody anywhere who seems to know what to do, and there’s no end to it.” — Howard Beale

Howard Beale, the main character in the 1976 film Network, became a part of cinematic history when he uttered the line “I’m mad as hell and I’m not gonna take it anymore.” That one line expressed a growing rage among America’s shrinking middle class at a time when Americans were reeling from years of war, political scandals and economic downturn.

In the four decades that have followed, little has improved for the average American. We’re still ‘mad as hell’ and the middle class is being eroded right in front of our eyes. When adjusted for inflation, many Americans are working longer hours and earning less than they did in 1976. So, how have we gone from vibrant middle class to the working poor in a matter of decades?

Median Incomes Are Stagnant

Despite increases in the national income over the past fifty years, middle class families have experienced little income growth over the past few decades. According to U.S. Census data, middle class incomes have grown by only 28 percent from 1979 – 2014. Meanwhile, a report from the Congressional Budget Office (CBO) shows that the top 20 percent of earners has seen their incomes rise by 95 percent over that same period of time.

Contributing to the stagnation of wages is a notable decrease in the workforce participation rate. According to the Brookings institute, “One reason for these declines in employment and labor force participation is that work is less rewarding. Wages for those at the bottom and middle of the skill and wage distribution have declined or stagnated.” Historical data from the Bureau of Labor Statistics backs up these findings, showing a steady decrease in workforce participation over the last two decades.

The Erosion of the Minimum Wage & America’s Purchasing Power

Anyone who has read a comment thread on the internet about minimum wage laws knows the debate is currently one of the most highly contentious political topics in America. In the halls of Congress, the debate has turned into a nearly decade long impasse. As a result, workers at the low end of the wage scale have watched the purchasing power of their wages decrease from $7.25 in 2009, to $6.19 in 2018 due to inflation. In 2018, you need to perform 47 hours of minimum wage work to achieve the same amount of purchasing power as 40 hours of work in 2009.

The inflation-adjusted minimum wage value has been in steady decline since 1968, when the $1.60 minimum wage was equal to $11.39 (in 2018 dollars). Since then, lawmakers have reduced minimum wage increases relative to the rate of inflation. As Christopher Ingraham reports:

“Recent research shows that the reason politicians — Democrats and Republicans alike — are dragging their feet on popular policies such as the minimum wage is that they pay a lot more attention to the needs and desires of deep-pocketed business groups than they do to regular voters. Those groups tend to oppose minimum wage increases for the simple reason that they eat into their profit margins.”

To be clear, the erosion of the purchasing power of everyday Americans is hardly a new phenomenon. According to data from the U.S. Bureau of Labor Statistics, the purchasing power of the U.S. Dollar has plummeted by over 95 percent since 1913, the year the Federal Reserve was created. The Bureau’s Consumer Price Index indicates that prices in 2018 are 2,436.33% higher than prices in 1913 and that the dollar has experienced an average inflation rate of 3.13% per year during this period.

The Rich Get Richer

While the outlook may be grim for low-wage workers, this is fantastic news for large corporations. Data from the U.S. Bureau of Economics shows that corporate profits are approaching all-time highs. But it’s not just workers who are feeling the effect of growing income inequality. The contrast is also being felt on Main Street. An analysis of the S & P 500 and the Russell 1,000 & 2,000 indexes by Bloomberg revealed a growing gap between America’s largest employers and smaller businesses.

A report from the Institute for Policy Studies entitled Billionaire Bonanza: The Forbes 400 and the Rest of Us echoed these findings when it revealed that America’s 20 wealthiest people — a group that could fit comfortably in one single Gulfstream G650 luxury jet –­ now own more wealth than the bottom half of the American population combined.

Although the Trump administration continues to tout stock market and labor force increases as signs of economic prosperity, numbers show that the wealthiest 10 percent of Americans own 84 percent of all stock. A study conducted by the Economic Policy Institute found that wage growth remains too weak to consider the economy at full employment and that stagnant wage growth has contributed to the growing level of income inequality in America. The study noted that while wages have recovered from the 2008 recession, the gap between those at the top and those at the middle and bottom has continued to increase since 2000. As the study’s author, Elise Gould writes:

“We’re looking at nominal wage growth that is still slower than you would expect in a full employment economy, slower than you would expect if you thought there were any sort of inflation pressures from wage growth.”

The Decimation of the American Dream

Comedian George Carlin once said, “The reason they call it the American Dream is because you have to be asleep to believe it.” For millions of middle class Americans Carlin’s statement has proven eerily accurate. Stagnant wages and decreased purchasing power has put the prospects for middle class children in a tailspin as upward mobility trends have reportedly fallen by over 40 percent since 1950.

A poll conducted by the Pew Research Institute corroborates this claim. According to Pew, only 37 percent of Americans believe that today’s children will grow up to be better off financially than their parents. That means more Americans think that today’s children will be financially worse off than their parents than those who believe they will be better off.

The sentiments expressed by millions of middle class Americans appear to be wholly justified due to the fact that middle class families are becoming more fragile and dependent on two incomes. A report from the Council of Economic Advisors found the majority of the income gains made by the middle class from 1979 to 2013 were a result of increased participation in the workplace by women. The report also noted the fragility of two income families amidst a decline in marriage and a drastic rise in single parent homes in recent years.

As a result of the slow growth in wages, over half of Americans now receive more in Government transfer payments (Medicare, Medicaid, food stamps, Social Security) than they pay in federal taxes. An analysis of all 50 states also found that in 42 states the cost of living is higher than the median income.

The rising cost of healthcare is also putting the pinch on the wallets of many Americans. As Jeffrey Pfeffer noted in his book Dying for a Paycheck, healthcare spending—per capita—has increased 29 fold over the past 40 years, outpacing the growth of the American economy.

While many Americans continue to look to the government to fix problems like wage stagnation, income inequality and rising healthcare costs, the sad truth is that we live in a time when 1 in 3 households has trouble paying energy bills and 40 percent of Americans face poverty in retirement at the exact same time the Federal Government has admitted that they lost $21 trillion. Not only did they lose $21 trillion (yes that’s TRILLION with a T), but the Department of Defense indicated in a press conference that they “never expected to pass” the audit to locate the missing taxpayer money.

John Emerich Edward Dalberg Acton famously proclaimed in 1887:

“Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men.”

Perhaps it’s time for the millions of Americans who are quietly ‘mad as hell’ to start expressing their rage at the corrupt institutions of power that are decimating their livelihoods rather than expecting those very same institutions to fix the problems they created.

 

Prices, plutocrats, and corporate concentration

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Would less corporate concentration – and a weaker corporate capacity to raise prices – mean less inequality?

By Sam Pizzigati

Source: Nation of Change

Andrew Leigh, a member of the Australian parliament, has a side gig. He just happens to be a working economist. Other lawmakers may spend their spare hours making cold calls for campaign cash. Leigh spends his doing research – on why our modern economies are leaving their populations ever more unequal.

Leigh’s latest research is making some global waves. Working with a team of Australian, Canadian, and American analysts, he’s been studying how much the prices corporate monopolies charge impact inequality.

The conventional wisdom has a simple answer: not much. Yes, the reasoning goes, prices do go up when a few large corporations start to dominate an economic sector. But those same higher prices translate into higher returns for corporate shareholders.

Thanks to 401(k)s and the like, the argument continues, the ranks of these corporate shareholders include millions of average families. So we end up with a wash. As consumers, families pay more in prices. As shareholders, they pocket higher dividends.

But this nonchalance about the impact of monopolies, Andrew Leigh and his colleagues counter, obscures “the relative distribution of consumption and corporate equity ownership.” Average families do hold some shares of stock, but not many. In the United States, for instance, the most affluent 20 percent of households own 13 times more stock than the bottom 60 percent.

These bottom 60 percent households, as a result, get precious little return from the few shares of stock they do hold, not nearly enough to offset the higher prices they pay on corporate monopoly products.

“On net, that means it’s nearly impossible for the typical U.S. family to make up for higher prices via the performance of their stock portfolio,” notes a Washington Post analysis of the Leigh team research. “When prices rise, low- and middle-class families pay. Wealthy families profit.”

By how much do these affluents profit? Leigh and his colleagues have done the math. The higher prices – and profits – that corporate concentration has generated have shifted 3 percent of national income out of the pockets of poor and middle-class families into the wallets of the affluent.

The larger our corporations become, in other words, the more unequal our societies become.

Now corporations don’t grow larger in the same way as people grow larger. Corporations have no adolescent growth spurts. They don’t mature. They have no real personhood. Corporations only become larger when the executives who run them make them larger, most typically by wheeling and dealing their way through ever grander mergers and acquisitions.

This wheeling and dealing takes up a huge chunk of modern corporate executive time and energy. Why do execs devote so much of their time and energy to getting bigger? Getting bigger pays – for execs.

Indeed, firm size determines how much executives make more than any other factor, as research has shown repeatedly over the years. Executives don’t have to “perform” – make their enterprises more efficient and effective – to make bigger bucks. They just to need to make their enterprises bigger.

Executives, in short, have a powerful incentive to grow their companies, and that powerful incentive, as the latest research from Andrew Leigh and his colleagues shows, isn’t just making these executives richer. It’s leaving our societies much more unequal.

So what can we do to ease the damage? Tougher antitrust enforcement could certainly slow our rates of corporate concentration. But the legislative activities of Andrew Leigh in Australia suggest another promising approach as well.

Leigh serves as a “shadow” minister for the Australian parliament’s Labor Party opposition. This past fall, he announced that his party, if elected to power, will require all major corporations to publicly disclose the ratio between their CEO and worker pay.

A similar disclosure mandate went into effect in the United States last year. As of January 1, 2019, the UK now has a pay-ratio disclosure mandate in effect as well.

Forcing Australian corporations to reveal their CEO-worker pay ratios, Leigh notes, would encourage these corporations “to think about how they are serving all their workers, and society as a whole.” But a growing number of progressives in the United States and the U.K. believe that pay ratios can do more than just “encourage” corporations to better serve their societies.

These progressives are pushing for consequences on CEO-pay ratios, proposing legislation that would deny government contracts and subsidies to corporations with wide gaps between their CEO and worker pay. They’re also calling for higher tax rates on companies with wider CEO-worker pay ratios, and one American city, Oregon’s Portland, already has such an “inequality tax” in effect.

More moves in this direction could significantly reduce the incentive for the executive wheeling and dealing that’s concentrating corporate power in fewer and fewer corporate hands. That wheeling and dealing – in nations with consequences on pay ratios in effect – would no longer guarantee grand windfalls to our corporate executive class.

Less wheeling and dealing, in turn, would mean less corporate concentration – and a weaker corporate capacity to raise prices. And that would mean, as the new Leigh gang’s research so clearly shows, less inequality.

US Backs Coup in Oil-Rich Venezuela, Right-Wing Opposition Plans Mass Privatization and Hyper-Capitalism

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The US has effectively declared a coup in Venezuela. Trump recognized unelected right-wing opposition leader Juan Guaidó as new “president,” who plans mass privatization and neoliberal capitalist policies.

By Ben Norton

Source: GrayZone

The United States has effectively declared a political coup d’état in Venezuela, from abroad. Trump announced on January 23 that the US recognizes the unelected, illegitimate right-wing opposition leader Juan Guaidó as the supposed new “interim president” of Venezuela’s supposed new “government.”

Venezuela’s US-backed opposition has pledged to carry out a mass privatization of state assets and to implement harsh neoliberal capitalist policies. The opposition-controlled legislatures declared in its “transition” plans that the “centralized model of controls of the economy will be replaced by a model of freedom and market based on the right of each Venezuelan to work under the guarantees of property rights and freedom of enterprise.”

The US has also hinted at violence in Venezuela. During a background briefing after Trump’s declaration, journalist Dan Cohen heard a US official declare that if the government of actual President Nicolás Maduro responds with any violence, “They have no immediate future, they have no immediate livelihood. One way or another they have their days counted.”

Trump administration officials added, “When we say all options are on the table, all options are on the table… Let’s hope Maduro and his cronies see the magnitude of the message.”

Region’s Right-Wing Countries Join US in Recognizing Coup

Canada’s Liberal government, led by Prime Minister Justin Trudeau; Brazil’s new far-right leader Jair Bolsonaro; and the overtly pro-US Organization of American States (OAS) and its Secretary General Luis Almagro have joined Trump in endorsing this diplomatic coup in Venezuela.

Likewise, the right-wing, US-allied countries in Latin America, including Argentina, Chile, Colombia, Costa Rica, and Ecuador have joined Trump in anointing Guaidó as leader.

The region’s few remaining leftist governments, Bolivia, Cuba, and Nicaragua, have continued recognizing Venezuela’s legitimate government, as has Mexico’s newly elected left-wing President Andrés Manuel López Obrador.

Bolivian President Evo Morales warned that “the claws of imperialism again seek to fatally wound the democracy and self-determination of the peoples of South America,” adding, “No longer will we be the backyard of the US.”

The US government, its right-wing allies, and an obeisant corporate media have repeatedly referred to Venezuela’s actual president, Nicolás Maduro, as an “authoritarian dictator.” What they have failed to mention is that Venezuela still has regular elections, but the US-backed right-wing opposition, which is notoriously disunited and incompetent, has chosen to boycott these elections, preferring to call for foreign-backed military coups instead.

One of the only elected officials in the US who has spoken out against the coup is left-wing California Congressman Ro Khanna. Other progressive and anti-Trump US politicians, including self-declared “democratic socialists,” have remained silent on Trump’s effective declaration of a coup in Latin America.

Opposition Plans for Privatized ‘Free Market’ Economy

While supporters of regime change in Venezuela insist this blatantly undemocratic move is necessary to “defend democracy,” make no mistake, the upheaval is clearly not motivated by resistance to authoritarianism.

Venezuela, which has the world’s largest oil reserves and has challenged the hegemony of the US dollar, has long been a target of US aggression. In 2002, the United States supported a military coup that briefly ousted democratically elected President Hugo Chávez and replaced him with the right-wing oligarch Pedro Carmona. US intervention, including crippling economic sanctions, has only continued since then.

Elements of Venezeula’s opposition have portrayed themselves to credulous foreign observers as “social democratic,” but their real intentions are very clear: The opposition-controlled legislature has demanded mass privatization of state assets and a return to a capitalist oligarch-controlled economic system built on “property rights and freedom of enterprise.”

In 2017, the Venezuelan government declared the creation of the Constituent Assembly, to rewrite the constitution. Venezuela’s opposition refused to recognize this body and boycotted the elections. The opposition instead remained in control of the National Assembly and decided to run it as a separate parallel legislature.

The opposition-controlled National Assembly drafted a “transition” law that openly outlines what policies the opposition, led by Juan Guaidó, would pursue in its illegitimate, US-recognized “government” in Venezuela. Analyst Jorge Martín, explained what this means in an article published by VenezuelaAnalysis:

The “transition law” drafted by the Assembly National (in contempt) is explicit about the central objectives of the coup in the political and economic field:

“[C]entralized controls, arbitrary measures of expropriation and other similar measures will be abolished… For these purposes, the centralized model of controls of the economy will be replaced by a model of freedom and market based on the right of each Venezuelan to work under the guarantees of property rights and freedom of enterprise.”

In other words, the nationalised companies will be returned to their former private owners (including telecommunications, electrical, SIDOR, cement, etc), as will expropriated landed estates. It is noteworthy that there is a lot of talk of property and business rights, but no mention is made of workers’ rights, which would certainly be abolished. It continues:

“Public companies will be subject to a restructuring process that ensures their efficient and transparent management, including through public-private agreements.”

What this means, in plain language, is massive dismissal of workers from state companies and the entry of private capital into them: a policy of looting which has already proved to be a disaster in all countries where it has been applied.

The model of the opposition’s new coup regime in Venezuela — backed by the US, Canada, and Brazil — is the reimposition of neoliberal capitalism and the recolonization of Latin America. Any bluster about restoring democracy is a mere pretense at this point.