Category Archives: war

‘What It Takes to Be President of the American Police State: Anti-Big Money, Anti-War, Pro-Constitution, Freedom-Loving Candidates Need Not Apply’

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By John W. Whitehead

Source: A Government of Wolves

“The qualifications for president seem to be that one is willing to commit mass murder one minute and hand presidential medals of freedom to other war criminals in the next. One need only apply if one has very loose, flexible, or non-existent morality.”—Author and activist Cindy Sheehan

Long gone are the days when the path to the White House was open to anyone who met the Constitution’s bare minimum requirements of being a natural born citizen, a resident of the United States for 14 years, and 35 years of age or older.

Today’s presidential hopefuls must jump through a series of hoops aimed at selecting the candidates best suited to serve the interests of the American police state. Candidates who are anti-war, anti-militarization, anti-Big Money, pro-Constitution, pro-individual freedom and unabashed advocates for the citizenry need not apply.

The carefully crafted spectacle of the presidential election with its nail-biting primaries, mud-slinging debates, caucuses, super-delegates, popular votes and electoral colleges has become a fool-proof exercise in how to persuade a gullible citizenry into believing that their votes matter.

Yet no matter how many Americans go to the polls on November 8, “we the people” will not be selecting the nation’s next president.

While voters might care about where a candidate stands on healthcare, Social Security, abortion and immigration—hot-button issues that are guaranteed to stir up the masses, secure campaign contributions and turn any election into a circus free-for-all—those aren’t the issues that will decide the outcome of this presidential election.

What decides elections are money and power.

We’ve been hoodwinked into believing that our votes count, that we live in a democracy, that elections make a difference, that it matters whether we vote Republican or Democrat, and that our elected officials are looking out for our best interests. Truth be told, we live in an oligarchy, and politicians represent only the profit motives of the corporate state, whose leaders know all too well that there is no discernible difference between red and blue politics, because there is only one color that matters in politics—green.

As much as the Republicans and Democrats like to act as if there’s a huge difference between them and their policies, they are part of the same big, brawling, noisy, semi-incestuous clan. Watch them interact at social events—hugging and kissing and nudging and joking and hobnobbing with each other—and it quickly becomes clear that they are not sworn enemies but partners in crime, united in a common goal, which is to maintain the status quo.

The powers-that-be will not allow anyone to be elected to the White House who does not answer to them.

Who are the powers-that-be, you might ask?

As I point out in my book Battlefield America: The War on the American People, the powers-that-be are the individuals and corporations who profit from America’s endless wars abroad and make their fortunes many times over by turning America’s homeland into a war zone. They are the agents and employees of the military-industrial complex, the security-industrial complex, and the surveillance-industrial complex. They are the fat cats on Wall Street who view the American citizenry as economic units to be bought, sold and traded on a moment’s notice. They are the monied elite from the defense and technology sectors, Hollywood, and Corporate America who believe their money makes them better suited to decide the nation’s future. They are the foreign nationals to whom America is trillions of dollars in debt.

One thing is for certain: the powers-that-be are not you and me.

In this way, the presidential race is just an exaggerated farce of political theater intended to dazzle, distract and divide us, all the while the police state marches steadily forward.

It’s a straight-forward equation: the candidate who wins the White House will be the one who can do the best job of ensuring that the powers-that-be keep raking in the money and acquiring ever greater powers. In other words, for any viable presidential candidate to get elected today that person must be willing to kill, lie, cheat, steal, be bought and sold and made to dance to the tune of his or her corporate overlords.

The following are just some of the necessary qualifications for anyone hoping to be appointed president of the American police state. Candidates must:

Help grow the military–industrial complex: Fifty-five years after President Dwight D. Eisenhower warned about the growth of the “military-industrial complex” in his farewell address, the partnership between the government, the military and private corporations has resulted in the permanent militarization of America. From militarized police and the explosive growth of SWAT teams to endless wars abroad, the expansion of private sector contractors, and never-ending blowback from our foreign occupations, we have become a nation permanently at war. As the New York Times pointed out, “themilitary is the true ‘third rail’ of American politics.” The military-industrial complex understands the value of buying the presidency, and has profited from the incessant warmongering of Obama and his predecessors. If money is any indicator of who the defense industry expects to win this November, thus far, Hillary Clinton is winning the money race, having collected more campaign contributions from employees with the 50 largest military contractors.

Police the rest of the world using U.S. troops: The U.S. military empire’s determination to police the rest of the world has resulted in more than 1.3 million U.S. troops being stationed at roughly 1000 military bases in over 150 countriesaround the world, including 48,000 in Japan, 37,000 in Germany, 27,000 in South Korea and 9800 in Afghanistan. That doesn’t include the number of private contractors pulling in hefty salaries at taxpayer expense. In Afghanistan, for example, private contractors outnumber U.S. troops three to one. Now comes the news that the U.S. is preparing to sendtroops to Libya on a long-term mission to fight ISIS.

Sow seeds of discord and foment wars among other nations under the guise of democracy: It’s not enough for the commander-in-chief to lead the United States into endless wars abroad. Any successful presidential candidate also needs to be adept at stirring up strife within other nations under the guise of spreading democracy. The real motive, of course, is creating new markets for the nation’s #1 export: weapons. In this way, the U.S. is constantly arming so-called “allies” with deadly weapons, only to later wage war against these same nations for possessing weapons of mass destruction. It happened in Iraq when the U.S. sold Saddam Hussein weapons to build his war machine. It happened in Syria when the U.S. provided rebel fighters with military equipment and munitions, only to have them seized by ISIS and used against us. Now comes the news that President Obama has agreed to sell weapons to Vietnam, lifting a decades-long embargo against the nation whose civil war claimed the lives of more than 90,000 Americans.

Speak of peace while slaughtering innocent civilians: Barack Obama’s campaign and subsequent presidency illustrates this principle perfectly. The first black American to become president, Obama was awarded the Nobel Peace Prize long before he had done anything to truly deserve it. He has rewarded the Nobel committee’s faith in him by becoming one of the most hawkish war presidents to lead the nation, overseeing a targeted-killing drone campaign that has resulted in thousands of civilian casualties and deaths. Ironically, while Obama has made no significant effort to de-escalate government-inflicted violence or de-weaponize militarized police, he has gone to great lengths to denounce and derail private gun ownership by American citizens.

Prioritize surveillance in the name of security over privacy: Since 9/11, the Surveillance State has undergone a dramatic boom, thanks largely to the passage of the USA Patriot Act and so-called “secret” interpretations of the mammoth law allowing the NSA and other government agencies to spy on Americans’ electronic communications. What began as a government-driven program under George W. Bush has grown under Obama into a mass surveillance private sector that makes its money by spying on American citizens. As Fortune reports, “In response to security concerns after 9/11, Americans witnessed the growth of a massive domestic security apparatus, fueled by federal largesse.” That profit-incentive has opened up a multi-billion dollar video surveillance industry that is blanketing the country with surveillance cameras—both governmental and private—which can be accessed by law enforcement at a moment’s notice.

Promote the interests of Corporate America and Big Money over the rights of the citizenry: Almost every major government program hailed as benefiting Americans—affordable healthcare, the war on terror, airport security, police-worn body cameras—has proven to be a Trojan Horse aimed at enriching Corporate America while leaving Americans poorer, less secure and less free. For instance, the so-called “affordable” health care mandated by Congress has become yet another costly line item in already strained household budgets for millions of Americans.

Expand the powers of the imperial president while repeatedly undermining the rule of law: George W. Bush assumed near-absolute power soon after the September 11, 2001, attacks. Unfettered by Congress or the Constitution, Bush led the “war on terror” abroad and championed both the USA Patriot Act and Homeland Security Department domestically. This, of course, led to the Bush Administration’s demand that presidential wartime powers permit the President to assume complete control over any and all aspects of an international war on terrorism. Such control included establishing military tribunals and eliminating basic rights long recognized under American law.

When Barack Obama ascended to the presidency in 2008, there was a sense, at least among those who voted for him, that the country might change for the better. Those who watched in awe as President Bush chipped away at our civil liberties over the course of his two terms as president thought that perhaps the young, charismatic Senator from Illinois would reverse course and put an end to some of the Bush administration’s worst transgressions—the indefinite detention of suspected terrorists, the torture, the black site prisons, and the never-ending wars that have drained our resources, to name just a few. As we near the end of Obama’s two terms in office, that fantasy has proven to be just that: a fantasy. Indeed, President Obama has not only carried on the Bush legacy, but has taken it to its logical conclusion. Obama has gone beyond Guantanamo Bay, gone beyond spying on Americans’ emails and phone calls, and gone beyond bombing countries without Congressional authorization. As journalist Amy Goodman warned, “the recent excesses of U.S. presidential power are not transient aberrations, but the creation of a frightening new normal, where drone strikes, warrantless surveillance, assassination and indefinite detention are conducted with arrogance and impunity, shielded by secrecy and beyond the reach of law.”

Act as if the work of the presidency is a hardship while enjoying all the perks: The race for the White House is an expensive, grueling horse race: candidates must have at a minimum $200 or $300 million or more just to get to the starting line. The total cost for this year’s election is estimated to exceed $5 billion and could go as high as $10 billion. However, for the winner, life in the White House is an endless series of star-studded dinner parties, lavish vacations and perks the likes of which the average American will never enjoy. The grand prize winner will rake in a $400,000 annual salary (not including $100,000 a year for travel expenses, $19,000 for entertaining, $50,000 for “general” expenses and last but not least, $1,000,000 for “unanticipated” expenses), live rent-free in a deluxe, 6-storey, 55,000 square foot mansion that comes complete with its own movie theater and bowling alley, round-the-clock staff, florists, valets and butlers. Upon leaving the White House, presidents are gifted with hefty pensions, paid staff and office space, travel allowances and lifetime medical care. Ex-presidents can also expand upon their largesse by writing books and giving speeches (Bill Clinton was given a $15 million advance for his memoir and routinely makes upwards of $100,000 per speech).

Clearly, it doesn’t matter where a candidate claims to stand on an issue as long as he or she is prepared to obey the dictates of the architects, movers and shakers, and shareholders of the police state once in office.

So here we are once again, preparing to embark upon yet another delusional, reassurance ritual of voting in order to sustain the illusion that we have a democratic republic when, in fact, what we have is a dictatorship without tears. Once again, we are left feeling helpless in the face of a well-funded, heavily armed propaganda machine that is busily spinning political webs with which the candidates can lure voters. And once again we are being urged to vote for the lesser of two evils.

Railing against a political choice that offers no real choice, gonzo journalist Hunter S. Thompson snarled, “How many more of these stinking, double-downer sideshows will we have to go through before we can get ourselves straight enough to put together some kind of national election that will give me and the at least 20 million people I tend to agree with a chance to vote for something, instead of always being faced with that old familiar choice between the lesser of two evils?”

Remember, the lesser of two evils is still evil.

Lament for Humanity: A 50 Year Reflection

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Beryl & James Burrowes 1942 & 2016

Beryl & James Burrowes 1942 & 2016

By Robert J. Burrowes

Source: RINF

Deeply affected by the death of my two uncles in World War II, on 1 July 1966, the 24th anniversary of the USS Sturgeon sinking of the Japanese prisoner-of-war ship Montevideo Maru which killed the man after whom I am named, I decided that I would devote my life to working out why human beings are violent and then developing a strategy to end it.

The good news about this commitment was that it was made when I was nearly 14 so, it seemed, anything was possible. Now I am not so sure.

Here is my report on 50 years of concerted effort to understand and end human violence.

In 1966 one of my immediate preoccupations was war. The US genocidal war on Vietnam was raging and, as a sycophantic ally of the United States, Australia had been drawn into it some years previously. Trying to understand what this war was really about was challenging, particularly given the limited (mainstream) sources of information available to me at the time.

But I was deeply troubled by another problem too. I had seen a photo of a starving African child in the newspaper when I was ten and I found this most disturbing. Why did adults let children starve? I wondered. And trying to make sense of this by reading newspaper reports or asking those around me was utterly unenlightening.

By the early 1970s the environmental crisis was starting to impact on my awareness too, including through environmental campaigns I heard about and the ‘limits to growth’ literature published by the Club of Rome, which I read at University.

So where are we today?

Well, the most casual perusal of the state of our world reveals the ongoing (and recently heightened) threat of nuclear war and obliteration (on top of the ongoing and rapidly spreading radioactive contamination generated by Fukushima and the use of Depleted Uranium weapons), ongoing phenomenal levels of military spending and the endless push from corporate and other elite interests for more wars. Hence, we are witness to and, through our taxes, active supporters of an endless sequence of wars, military invasions, occupations and coups, virtually all of them instigated by the US elite and its allies, as well as a sequence of ‘local’ wars, also instigated by western elites and supplied with weapons by western corporations.

The global economy teeters on the brink of collapse and, of course, from the viewpoint of those 100,000 people in Africa, Asia and Central/South America who starve to death each day or those one billion people who live in a state of semi-starvation and abject poverty in many parts of the world, it has already ‘collapsed’. This all happens at the instigation of insane elites who continue to accumulate and hoard their wealth, much of it in illegal offshore tax havens. Given the enormous psychological damage that individual members of the elite have suffered, millions or even billions can never be enough.

And the environmental crisis has only become vastly worse with the synergistic impact of our combined assaults on the environment causing human extinction-threatening strain on the biosphere. These devastating assaults include those inflicted by military violence (often leaving vast areas uninhabitable), the emission of vast quantities of carbon dioxide, methane and nitrous oxide into the atmosphere, rainforest destruction, industrial farming, mining, commercial fishing and spreading radioactive contamination.

We are also systematically destroying the limited supply of fresh water on the planet and inducing the collapse of hydrological systems. Human activity drives 200 species of life (birds, animals, fish, insects, reptiles, amphibians, plants) to extinction each day and 80% of the world’s forests and over 90% of the large fish in the ocean are already gone.

Despite this readily available information, governments continue to prioritize spending $US2,000,000,000 each day on military violence, the sole purpose of which is to terrorize and kill fellow human beings, now or in the future.

In addition, you might have noticed the ongoing attacks on everything from our civil liberties and right to privacy to our right to eat healthy food that has not been poisoned and/or genetically mutilated.

So why does all of this happen? Well, 50 years of research and decades of nonviolent activism have had some rewards and particularly the research that Anita McKone and I conducted during our 14 years in seclusion (1996-2010) which fully explained why human beings are violent. In essence, it is an outcome of the visible, ‘invisible’ and ‘utterly invisible’ violence inflicted by adults on children. See ‘Why Violence?’ and ‘Fearless Psychology and Fearful Psychology: Principles and Practice’.

Moreover, this research also gave us enormous insight into the insanity of the global elite and those who serve them in order to maintain this worldwide system of violence and exploitation that is killing us all while destroying the biosphere. Whether it be the politicians who implement elite policies, the academics who ‘justify’ or remain silent about this violence and exploitation, the business people who manage it, the judges, magistrates, lawyers and prosecutors who defend and ultimately enforce it, the teachers and media personnel who teach and promote (or distract us from) it, or the soldiers, private military contractors, police and prison officers who inflict its most direct violence, the global elite is served by a ready stream of witting or unwitting people, many of whom are paid by your taxes to do its bidding. See ‘The Global Elite is Insane’.

And just to ensure that you are endlessly frightened into accepting this worldwide system of violence and exploitation, and to support its further encroachment into your life, the global elite conducts an ongoing terrorist campaign against you. See ‘Terrorism: Ultimate Weapon of the Global Elite’ and ‘Why Elites Love Drones’.

But there is another huge problem too: Lack of solidarity.

Elites know that they can divide us and that enables them to conquer us. Despite our efforts to build solidarity over recent decades, elites keep finding new ways to emphasize our ‘differences’. We need to start thinking of our selves as ‘We are all each other’. Does it matter if the ‘big’ difference between us is our gender, our race, our class, our religion, our nationality or something else (or even all of these)?

While elites can easily manipulate us, especially via education systems and the corporate media, into projecting our fear and self-hatred onto others who are ‘different’ and then inflicting violence on, or even killing, each other because, in effect, ‘I am an adult and you are a child’, ‘I am a man and you are a woman’, ‘I am non-indigenous and you are indigenous’, ‘I am a Christian/Jew/Hindu/Buddhist and you are a Muslim’, ‘I am working class and you are middle class’, ‘I am white and you are not’, ‘I am straight and you are LGBTQIA’, ‘I am one nationality and you are another’, ‘I am a feminist and you are a socialist’, or even ‘I am human and you are a bird/animal/fish/insect/reptile/amphibian/plant’ then we haven’t even begun to realize that the real issue is that we are all living beings and this insane elite is willing to do anything they can to exploit and, if necessary, kill us all.

Isn’t it time we started to see what makes us the same – victims of violence and exploitation – rather than focusing on what, after all, are the rather less significant differences in our bodily characteristics, in our beliefs or even the causes of our exploitation (which is not meant to diminish the significance of the outcomes of direct and structural violence which undoubtedly have variable impact)? Fear divides us.

One interesting personal outcome of this lifetime of effort, apart from the many arrests, terms of imprisonment (including once in a psychiatric ward where I was forcibly injected with ‘antipsychotic’ drugs), bankruptcy and seizure of my passport that have been direct results of my nonviolent activism, is that Anita and I have been homeless since 1999: conscience has its costs. Moreover, a worldwide search has failed to identify more than a handful of individuals (but pre-eminently my parents, James and Beryl, both veterans of World War II and now 93) or an organization of any kind that is willing to fund our research or our work to end human violence. Of course, there is a psychological explanation for this as well. See ‘Why Don’t We Try to Understand and End Human Violence?’

So what of human prospects? Not good. With an insane elite controlling the US (and other) military/nuclear arsenals and the highly exploitative global economy (with the secret corporate governance deals, such as the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership, designed to further consolidate corporate control of our world), as well as the dominant discourse via the education systems and corporate media, very few people have the emotional and intellectual capacities to critique this world order and then strategically and nonviolently resist the rush to extinction in which we now find ourselves. In short, most human beings are utterly (unconsciously) terrified and remain politically inert despite time and opportunities slipping rapidly away.

And those who do courageously resist this violent world order face a phalanx of violent institutions, ranging from psychiatry – see ‘Defeating the Violence of Psychiatry’ – and the pharmaceutical – see ‘Bad Pharma: How Drug Companies Mislead Doctors and Harm Patients’ – and agribusiness – see ‘Monsanto, America’s Monster’ – industries to the corporate media – see ‘Propaganda & Engineering Consent for Empire’ – and the police, legal and prison systems – see ‘The Rule of Law: Unjust and Violent’ – designed to neutralize or stop us, one way or another.

So what do I suggest? Well, with the scientific evidence now indicating that near term human extinction is the most likely outcome – see ‘Why is Near Term Human Extinction Inevitable?’ – it is increasingly clear that if we are to end human violence in all of its many and complex manifestations, and prevent human extinction, then we need an integrated and comprehensive strategy for doing so that also provides many meaningful avenues for involvement by individuals and organizations who wish to respond powerfully: token gestures have no value. Over many years I have endeavoured to create this overarching strategy and I invite you to participate in it by doing one or more of the following.

If you are an adult, you might consider dramatically modifying your treatment of children in accordance with ‘My Promise to Children’. You might also find this article useful in better understanding how to do so: ‘Nisteling: The Art of Deep Listening’.

If these suggestions seem beyond you, then perhaps your own emotional healing should be your priority. Despite its title, this article explains what you need to do: ‘An Open Letter to Soldiers with “Mental Health” Issues’. And remember this: if you don’t believe that you are ‘important’ enough to spend time learning to know yourself more deeply, I disagree. You are important.

Separately from the above, you might like to join those participating in ‘The Flame Tree Project to Save Life on Earth’. You might also consider signing the online pledge of ‘The People’s Charter to Create a Nonviolent World’.

And if you would like to learn how to make your nonviolent action campaign for a peace, environmental or social justice outcome more strategically effective, you can do so here: ‘Nonviolent Campaign Strategy’. To nonviolently defend against coups and invasions, remove a dictatorship or conduct a liberation struggle, check out ‘Nonviolent Defense/Liberation Strategy’.

I am not going to get another 50 years to try to create the world of peace, justice and sustainability for which many of us strive but I am going to use every single moment of the time I have left.

Why? Because I love the Earth and everything on it. And you?

 

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.

 

Stripping the veneer off America’s propaganda menagerie

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By Wayne Madsen

Source: Intrepid Report

National Security Agency whistleblower Edward Snowden and WikiLeaks founder Julian Assange have doubled down recently on the games being played in cyberspace by America’s cyberwarriors. Snowden suggests that many of NSA’s most damaging malware programs are now in the hands of America’s opponents, thanks to enterprising foreign counterintelligence hackers known as the Shadow Brokers. Snowden believes that the malware, including destructive programs such as Stuxnet, are being auctioned off, via Bitcoin payments, by the Shadow Brokers. Snowden stated that the malware was obtained through hacking from a murky NSA operation called the “Equation Group.”

Assange, fearful that a new Ecuadorian president will hand him over to a Clinton administration in 2017, claims to have more hacked bombshells to drop on Team Clinton, courtesy of weak security in Democratic National Committee and Clinton campaign computer systems.

We have entered a new phase of cyberwarfare, one in which America’s (and Israel’s) most damaging computer hacking and disruption programs are available to anyone willing to pay in Bitcoins on the cyberblack market. The Democratic Party’s leaked emails, coupled with the leaked State Department cables, has Hillary Clinton in an outrage. These disclosures, along with the Snowden disclosures that illustrate how America spies on friend and foe, have stripped the veneer off of America’s propaganda menagerie. Two of the three culprits Mrs. Clinton would like to see in prison for the rest of their lives are, for the time being, outside of Gulag America. Snowden is enjoying political asylum in Russia and Assange has asylum at the Ecuadorian embassy in London. The third, Chelsea Manning, is serving a 35-year prison term at Fort Leavenworth in Kansas and allegedly recently attempted suicide.

Paul Ceglia, who claims to have been the co-founder of Facebook, says he is on the run from the CIA after he filed suit against Facebook and its owner Mark Zuckerberg. Although Zuckerberg admits to having a past business relationship with Ceglia, the US Justice Department criminally charged Ceglia for trying to defraud Facebook after the former associate of Zuckerberg brought a civil suit in federal court in Buffalo against the company. Interestingly, Facebook has donated more money to Hillary Clinton than any other presidential candidate. But what is really at issue in the bizarre case is that Ceglia claims that Facebook’s seed money came from the CIA’s venture capital firm IN-Q-TEL, a charge to which WMR can attest after compiling a massive list of CIA front companies and proprietaries in the soon-to-be-published book: “The Almost Classified Guide to CIA Front Companies, Proprietaries and Contractors.”

The CIA and its partners at Facebook, Google, Yahoo, Microsoft, and other social media firms have striven to control the new media in the same manner that the CIA controlled the “old media” through operations like MOCKINGBIRD. During the Cold War era, the CIA claimed that all the world’s ills were due to Communist front organizations that influenced the media. The truth is that the so-called “fronts” often provided actual accounts of the misdeeds of the CIA and other Western intelligence agencies. However, with U.S. newspapers, magazines, and broadcast networks carrying the water for the CIA, it was Langley’s interpretation of the news that made Western headlines. The “Communist” reports were relegated to the nether regions of “Soviet disinformation” campaigns and “active measures.” The CIA laughably put out a periodical report on such “disinformation” tactics. In reality, what was called “disinformation” was actually bona fide news.

Today, when the CIA wants to debase a news article, it uses such operations as Snopes.com and Wikipedia to engage in CIA disinformation tactics. Uncomfortable truthful news items are quickly dispatched with the term “conspiracy theory.” There is little doubt that Facebook, Wikipedia, and Snopes are part of a “new MOCKINGBIRD” designed for the digital age. Like them or not, Snowden, Assange, Manning, Ceglia, and others have pulled the veil off of the new MOCKINGBIRD.

A formerly secret February 1987 CIA report on Soviet disinformation tactics illustrates that what was described then as “propaganda” was, in fact, the truth.

  • The CIA called baseless charges in a Soviet book that Jonestown, Guyana was a CIA behavioral control operation. It was.
  • The Soviets accused Ronald Reagan’s Strategic Defense Initiative (SDI) of having the goal of weaponizing outer space. Not only was that the goal then, but it remains the goal of present incarnations of SDI.
  • The Soviets and the Afghan president, Najibullah of the Afghan Communist Party, said that they reached out to 50,000 Afghan mujaheddin in Afghanistan and Pakistan, who agreed to lay down their arms and join a coalition government, with eight opposition parties joining the Communists. The CIA and Western media called the news bogus. It was true with television footage of Afghan refugees returning to their homeland from India. The Soviets wanted an internationally-guaranteed neutral Afghanistan before withdrawing their troops. The CIA wanted a radical Islamic Afghanistan from which to launch attacks on the southern Soviet Union. That decision came back to bite the United States on September 11, 2001.
  • The CIA accused the Sandinista government of Nicaragua and the Soviets of being behind the Christian “Evangelical Committee for Development Aid” as a Communist front group. If so, it would have been the first time Communists and Christian evangelicals broke bread together. The CIA’s charge was fatuously false.
  • The Soviets accused the U.S. of using Africans as test subjects for a new AIDS vaccine. This charge has been proven with Africans being used as “guinea pigs” for various new vaccines in programs funded by the Bill and Melinda Gates Foundation, the Clinton Global Initiative, Pfizer Corporation, and other entities linked to CIA biological and genetic warfare operations.
  • Articles in two Bolivian newspapers that stated that the U.S. Information Service in La Paz was trying to recruit Bolivian journalists to write pro-Pentagon articles were deemed by the CIA to be bogus. The CIA charge was false and it included smearing the Federation of Bolivian Press Workers as a Communist front. That is the usual practice by the CIA when it’s caught red-handed.
  • The Soviet news agency Novosti was accused of running a false article, titled “The Relationship Between Journalists and the CIA: Hundreds of Them in International Press.” The article was spot on.
  • The CIA charged as Soviet disinformation charges that the CIA killed nine nonaligned leaders, including Indian Prime Ministers Indira and Rajiv Gandhi. In fact, the CIA has killed many more than nine nonaligned leaders.

In the digital world of YouTube, Facebook, Google, and other social and news media sites, the CIA continues its game of disinformation while accusing others of conducting the same game plan. Some three decades after the Cold War, the CIA’s charges of Soviet disinformation can now be seen as disinformation in their own right.

 

Wayne Madsen is a Washington, DC-based investigative journalist and nationally-distributed columnist. He is the editor and publisher of the Wayne Madsen Report (subscription required).

Why Ajamu Baraka? Why Vice President? And Why the Green Party?

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What does the Green Party nomination of longtime Black Agenda Report contributing editor Ajamu Baraka for Vice President mean for the Green Party and the 2016 presidential election?  Is he just a black face on the ticket, or is it really time to begin organizing in black and brown communities outside the matrix of the bankrupt black and brown misleadership class?

By Bruce A. Dixon

Source: Black Agenda Report

In Houston on the first Saturday of August, the Green Party nominated Jill Stein, a Massachusetts physician, and Ajamu Baraka, a longtime human rights activists as its presidential and vice presidential candidates for 2016.  Stein’s nomination was a foregone conclusion, having been the Green candidate in 2012 and the only one of several aspirants to raise money, hire staff and campaign across the country full time for more than a year.

Ajamu Baraka followed a different road to the nomination, having been an interested observer but with no organizational connection to the Green Party till now.  Ajamu Baraka was the founding executive director of the US Human Rights Network, which still seeks to have the framework of internationally recognized human rights law applied to the victims of social and economic injustice in the US.  This is a truly radical concept because the supreme law in the US is the Constitution, which chiefly guarantees property rights and the rights of corporations but not necessarily the rights of human beings to a quality education, the vote, decent housing, health care, renumerative jobs and the right to organize, or to a safe and clean environment, none of which are mentioned.
Ajamu Baraka was among the first to demand, in the wake of the Katrina disaster, that the 300,000 or so persons uprooted, the majority of them African American, be classified as “internally displaced” under international law, a status which would have guaranteed them the right to return to the cities and towns from which they were displaced and dispersed to the four corners of the US.  Since the 1980s Baraka has been a consistent and principled critic of imperial US foreign policy over the years in Africa, Asia, Central and South America and the Middle East.  He’s served in and led fact-finding delegations to Central America, Cuba, Israel-Palestine, Colombia and other places.  In the wake of the 2010 hunger strike waged by Georgia prisoners, Baraka led an unprecedented civilian inspection team into two state prisons where they were able to interview staff and prisoners alike.

I should say here that I count both Jill and Ajamu as comrades and personal friends, that I was on Jill’s campaign staff for several months and that Ajamu Baraka has more than 50 articles published at Black Agenda Report.
So why Ajamu Baraka?

It’s not a simple matter of putting a black face on the ticket.  Greens have run black candidates in local and national races before without managing to make a significant dent in traditional black allegiances to the Democratic party.

Stein chose Baraka because one of her campaign’s objectives is to strengthen state and local Green parties.  As a result of his more than four decades of work in the movement, Baraka has longstanding personal ties with and has been mentor to many of the activists involved in the Black Lives Matter movement around the country.  If anyone can carry the message to these forces that now is the time for organizing alternative centers of struggle for political power, centers of struggle outside the two capitalist parties and outside the nonprofit industrial complex, that someone is Ajamu Baraka.

African American voters have long been the rock upon which the Democratic party’s voting coalition rests.  But since blacks vote Democratic mainly out of fear of the Republicans, they are a captive constituency whose votes are counted but whose demands are ignored.  Jill and the Greens know it will take more than running good black or brown candidates to make its black, Latin and working class captive constituencies climb out of the Democrats’ trunk.  Realistically that won’t much happen this election.  The candidacies of Greens like Joshua Harris in Baltimore and Ashley Flash Gordon in Travis County TX are signs that something new and unprecedented is peeking over the horizon, something that will challenge the vacuity and lack of vision of the black political class.  It’s not a challenge mature enough to accomplish a string of local electoral victories across the country.  But it’s real, it’s gaining ground, building experience and it’s not going away.

The present black political class and the leadership model that supports it have been in place pretty much since the days of Booker T. Washington twelve decades ago.  They won’t be displaced this election cycle, but their political bankruptcy is every bit as real and obvious as that of their white counterparts.

Why Vice President?

A frequently asked question is why Greens run candidates for president every year, but haven’t elected or even run candidates in many states for state reps and state senators, for county commissioners and members of congress.  The answer is really simple.

The two capitalist parties protect themselves against competitors with a briar patch, a minefield of provisions and conditions expressly designed to make it all but impossible for parties not financed by the one percent to appear on the ballot.  In many states, candidates who are not Democrats or Republicans are prohibited from appearing on the ballot until after their parties have scored one percent, two percent or five percent, depending on the state, in a statewide election.

This legal requirement in states like Georgia that Greens must score tens or hundreds of thousands of votes in statewide races before being allowed to run in local races is one more of the deliberate obstacles Democrats and Republicans have erected to competition from third parties at the ballot box.  And it’s why Ajamu Baraka is running for vice president and Jill Stein for president much of the country were Greens are not allowed to run for local office.

Why the Green Party?

For the last fifty years, Republicans have deliberately made themselves the party of white racists and nativists.  There’s simply in the Republican party or African Americans except a shorter line.  Democrats talk a different game, but are responsible to the same one percenters who fund Republicans, so once in office, Democrats govern pretty much like Republicans.  In fact Democratic presidents and governors frequently enact the oppressive policies we won’t allow Republicans to enact.

NAFTA came up twice during the first Bush presidency and failed.  It took a Democrat, a President Clinton to rally enough right wing Democrats to ally with Republicans to get it into law.  Ending public aid was also something no Republican could do, but Democrats only need  the support of the black and poor when they’re candidates, not so much when they’re governing.  The 2008 Bush bailout went before a Democratic Congress and it failed.  Barack Obama had to suspend his campaign for a week and come to DC and work the phones to flip the Congressional Black Caucus and enough other Democrats to pass the Bush bailout, which he quadrupled down on once in the White House.  Again it was a blow no Republican could have struck, though many wanted to.

Barack Obama used stimulus money to fund what he called “Race To The Top”, a drive to privatize public education that resulted in the closing and privatization of thousands of public schools, and pushed hundreds of thousands of qualified experienced public school educators out of the classroom.  This too was something no Republican could have accomplished, much as they wanted to.  There are many, many similar examples of Democrats accomplishing the right wing goals Republicans can only talk about on the state and local levels.
Republicans like Donald Trump talk about how they’d like to do mass deportations.  But our First Black President has deported two million people, more than any other three presidents combined, after promising Latino voters “a road to citizenship” in both his campaigns.

The only reason to vote for Democrats is our fear of Republicans, and as Jill Stein says, this politics of fear has delivered to us everything we were afraid of.  People voted Democratic to end the war in Iraq but we got more war in the Middle East and Africa.  People voted Democrat to raise the minimum wage and see millions of new jobs created.  But the minimum wage has barely risen and the only reason official unemployment figures are down is that his policies have pushed millions of people out of the formal workforce into increasingly precarious economic situations.

At the end of the reign of our first black president, a Democrat when blacks have been the rock and mainstay of Democratic voting coalitions for two generations, forty percent of black children are growing up in poverty.  Isn’t it time for some new questions?

Why must “progressives” ride to Hillary’s rescue if we don’t get progress?

Trump is a bumbling clown and a bogeyman.  He’s raising a fraction of the money Romney raised, four years ago.  Hillary Clinton has a billion dollars to campaign with and most of the corporate media. If she can’t beat this fool with all the resources available to her, why is it up to us?  Why?  Hillary ought to be, and ought to have been helping us, not the other way around.

I don’t expect the Greens to win the presidential election.  But the US system is almost 250 years old, one of the most elderly on the planet.  Its creaks and cracks are highly visible and aren’t going away.  Isn’t it time to start imagining and building what comes next, what comes after capitalism, what comes after genocide and ecocide, what comes after patriarchy and white supremacy?

Isn’t it time to start being the change we want to see?

That won’t happen inside the Democratic party.  It’s been tried again and again.  It’s time to build something different.  So why not the Green Party?
Bruce A. Dixon is managing editor at Black Agenda Report and a member of the state committee of the Georgia Green Party.  He lives and works near Marietta GA and can be reached via email at bruce.dixon(at)blackagendareport.com.

 

The Great Ponzi Scheme of the Global Economy

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By Michael Hudson and Chris Hedges

Source: CounterPunch

CHRIS HEDGES: We’re going to be discussing a great Ponzi scheme that not only defines not only the U.S. but the global economy, how we got there and where we’re going. And with me to discuss this issue is the economist Michael Hudson, author of Killing the Host: How Financial Parasites and Debt Destroy the Global Economy. A professor of economics who worked for many years on Wall Street, where you don’t succeed if you don’t grasp Marx’s dictum that capitalism is about exploitation. And he is also, I should mention, the godson of Leon Trotsky.

I want to open this discussion by reading a passage from your book, which I admire very much, which I think gets to the core of what you discuss. You write,

“Adam Smith long ago remarked that profits often are highest in nations going fastest to ruin. There are many ways to create economic suicide on a national level. The major way through history has been through indebting the economy. Debt always expands to reach a point where it cannot be paid by a large swathe of the economy. This is the point where austerity is imposed and ownership of wealth polarizes between the One Percent and the 99 Percent. Today is not the first time this has occurred in history. But it is the first time that running into debt has occurred deliberately.” Applauded. “As if most debtors can get rich by borrowing, not reduced to a condition of debt peonage.”

So let’s start with the classical economists, who certainly understood this. They were reacting of course to feudalism. And what happened to the study of economics so that it became gamed by ideologues?

HUDSON: The essence of classical economics was to reform industrial capitalism, to streamline it, and to free the European economies from the legacy of feudalism. The legacy of feudalism was landlords extracting land-rent, and living as a class that took income without producing anything. Also, banks that were not funding industry. The leading industrialists from James Watt, with his steam engine, to the railroads …

HEDGES: From your book you make the point that banks almost never funded industry.

HUDSON: That’s the point: They never have. By the time you got to Marx later in the 19th century, you had a discussion, largely in Germany, over how to make banks do something they did not do under feudalism. Right now we’re having the economic surplus being drained not by the landlords but also by banks and bondholders.

Adam Smith was very much against colonialism because that lead to wars, and wars led to public debt. He said the solution to prevent this financial class of bondholders burdening the economy by imposing more and more taxes on consumer goods every time they went to war was to finance wars on a pay-as-you-go basis. Instead of borrowing, you’d tax the people. Then, he thought, if everybody felt the burden of war in the form of paying taxes, they’d be against it. Well, it took all of the 19th century to fight for democracy and to extend the vote so that instead of landlords controlling Parliament and its law-making and tax system through the House of Lords, you’d extend the vote to labor, to women and everybody. The theory was that society as a whole would vote in its self-interest. It would vote for the 99 Percent, not for the One Percent.

By the time Marx wrote in the 1870s, he could see what was happening in Germany. German banks were trying to make money in conjunction with the government, by lending to heavy industry, largely to the military-industrial complex.

HEDGES: This was Bismarck’s kind of social – I don’t know what we’d call it. It was a form of capitalist socialism…

HUDSON: They called it State Capitalism. There was a long discussion by Engels, saying, wait a minute. We’re for Socialism. State Capitalism isn’t what we mean by socialism. There are two kinds of state-oriented–.

HEDGES: I’m going to interject that there was a kind of brilliance behind Bismarck’s policy because he created state pensions, he provided health benefits, and he directed banking toward industry, toward the industrialization of Germany which, as you point out, was very different in Britain and the United States.

HUDSON: German banking was so successful that by the time World War I broke out, there were discussions in English economic journals worrying that Germany and the Axis powers were going to win because their banks were more suited to fund industry. Without industry you can’t have really a military. But British banks only lent for foreign trade and for speculation. Their stock market was a hit-and-run operation. They wanted quick in-and-out profits, while German banks didn’t insist that their clients pay as much in dividends. German banks owned stocks as well as bonds, and there was much more of a mutual partnership.

That’s what most of the 19th century imagined was going to happen – that the world was on the way to socializing banking. And toward moving capitalism beyond the feudal level, getting rid of the landlord class, getting rid of the rent, getting rid of interest. It was going to be labor and capital, profits and wages, with profits being reinvested in more capital. You’d have an expansion of technology. By the early twentieth century most futurists imagined that we’d be living in a leisure economy by now.

HEDGES: Including Karl Marx.

HUDSON: That’s right. A ten-hour workweek. To Marx, socialism was to be an outgrowth of the reformed state of capitalism, as seemed likely at the time – if labor organized in its self-interest.

HEDGES: Isn’t what happened in large part because of the defeat of Germany in World War I? But also, because we took the understanding of economists like Adam Smith and maybe Keynes. I don’t know who you would blame for this, whether Ricardo or others, but we created a fictitious economic theory to praise a rentier or rent-derived, interest-derived capitalism that countered productive forces within the economy. Perhaps you can address that.

HUDSON: Here’s what happened. Marx traumatized classical economics by taking the concepts of Adam Smith and John Stuart Mill and others, and pushing them to their logical conclusion. Progressive capitalist advocates – Ricardian socialists such as John Stuart Mill – wanted to tax away the land or nationalize it. Marx wanted governments to take over heavy industry and build infrastructure to provide low-cost and ultimately free basic services. This was traumatizing the landlord class and the One Percent. And they fought back. They wanted to make everything part of “the market,” which functioned on credit supplied by them and paid rent to them.

None of the classical economists imagined how the feudal interests – these great vested interests that had all the land and money – actually would fight back and succeed. They thought that the future was going to belong to capital and labor. But by the late 19th century, certainly in America, people like John Bates Clark came out with a completely different theory, rejecting the classical economics of Adam Smith, the Physiocrats and John Stuart Mill.

HEDGES: Physiocrats are, you’ve tried to explain, the enlightened French economists.

HUDSON: The common denominator among all these classical economists was the distinction between earned income and unearned income. Unearned income was rent and interest. Earned incomes were wages and profits. But John Bates Clark came and said that there’s no such thing as unearned income. He said that the landlord actually earns his rent by taking the effort to provide a house and land to renters, while banks provide credit to earn their interest. Every kind of income is thus “earned,” and everybody earns their income. So everybody who accumulates wealth, by definition, according to his formulas, get rich by adding to what is now called Gross Domestic Product (GDP).

HEDGES: One of the points you make in Killing the Host which I liked was that in almost all cases, those who had the capacity to make money parasitically off interest and rent had either – if you go back to the origins – looted and seized the land by force, or inherited it.

HUDSON: That’s correct. In other words, their income is unearned. The result of this anti-classical revolution you had just before World War I was that today, almost all the economic growth in the last decade has gone to the One Percent. It’s gone to Wall Street, to real estate …

HEDGES: But you blame this on what you call Junk Economics.

HUDSON: Junk Economics is the anti-classical reaction.

HEDGES: Explain a little bit how, in essence, it’s a fictitious form of measuring the economy.

HUDSON: Well, some time ago I went to a bank, a block away from here – a Chase Manhattan bank – and I took out money from the teller. As I turned around and took a few steps, there were two pickpockets. One pushed me over and the other grabbed the money and ran out. The guard stood there and saw it. So I asked for the money back. I said, look, I was robbed in your bank, right inside. And they said, “Well, we don’t arm our guards because if they shot someone, the thief could sue us and we don’t want that.” They gave me an equivalent amount of money back.

Well, imagine if you count all this crime, all the money that’s taken, as an addition to GDP. Because now the crook has provided the service of not stabbing me. Or suppose somebody’s held up at an ATM machine and the robber says, “Your money or your life.” You say, “Okay, here’s my money.” The crook has given you the choice of your life. In a way that’s how the Gross National Product accounts are put up. It’s not so different from how Wall Street extracts money from the economy. Then also you have landlords extracting …

HEDGES: Let’s go back. They’re extracting money from the economy by debt peonage. By raising …

HUDSON: By not playing a productive role, basically.

HEDGES: Right. So it’s credit card interest, mortgage interest, car loans, student loans. That’s how they make their funds.

HUDSON: That’s right. Money is not a factor of production. But in order to have access to credit, in order to get money, in order to get an education, you have to pay the banks. At New York University here, for instance, they have Citibank. I think Citibank people were on the board of directors at NYU. You get the students, when they come here, to start at the local bank. And once you are in a bank and have monthly funds taken out of your account for electric utilities, or whatever, it’s very cumbersome to change.

So basically you have what the classical economists called the rentier class. The class that lives on economic rents. Landlords, monopolists charging more, and the banks. If you have a pharmaceutical company that raises the price of a drug from $12 a shot to $200 all of a sudden, their profits go up. Their increased price for the drug is counted in the national income accounts as if the economy is producing more. So all this presumed economic growth that has all been taken by the One Percent in the last ten years, and people say the economy is growing. But the economy isn’t growing …

HEDGES: Because it’s not reinvested.

HUDSON: That’s right. It’s not production, it’s not consumption. The wealth of the One Percent is obtained essentially by lending money to the 99 Percent and then charging interest on it, and recycling this interest at an exponentially growing rate.

HEDGES: And why is it important, as I think you point out in your book, that economic theory counts this rentier income as productive income? Explain why that’s important.

HUDSON: If you’re a rentier, you want to say that you earned your income by …

HEDGES: We’re talking about Goldman Sachs, by the way.

HUDSON: Yes, Goldman Sachs. The head of Goldman Sachs came out and said that Goldman Sachs workers are the most productive in the world. That’s why they’re paid what they are. The concept of productivity in America is income divided by labor. So if you’re Goldman Sachs and you pay yourself $20 million a year in salary and bonuses, you’re considered to have added $20 million to GDP, and that’s enormously productive. So we’re talking in a tautology. We’re talking with circular reasoning here.

So the issue is whether Goldman Sachs, Wall Street and predatory pharmaceutical firms, actually add “product” or whether they’re just exploiting other people. That’s why I used the word parasitism in my book’s title. People think of a parasite as simply taking money, taking blood out of a host or taking money out of the economy. But in nature it’s much more complicated. The parasite can’t simply come in and take something. First of all, it needs to numb the host. It has an enzyme so that the host doesn’t realize the parasite’s there. And then the parasites have another enzyme that takes over the host’s brain. It makes the host imagine that the parasite is part of its own body, actually part of itself and hence to be protected.

That’s basically what Wall Street has done. It depicts itself as part of the economy. Not as a wrapping around it, not as external to it, but actually the part that’s helping the body grow, and that actually is responsible for most of the growth. But in fact it’s the parasite that is taking over the growth.

The result is an inversion of classical economics. It turns Adam Smith upside down. It says what the classical economists said was unproductive – parasitism – actually is the real economy. And that the parasites are labor and industry that get in the way of what the parasite wants – which is to reproduce itself, not help the host, that is, labor and capital.

HEDGES: And then the classical economists like Adam Smith were quite clear that unless that rentier income, you know, the money made by things like hedge funds, was heavily taxed and put back into the economy, the economy would ultimately go into a kind of tailspin. And I think the example of that, which you point out in your book, is what’s happened in terms of large corporations with stock dividends and buybacks. And maybe you can explain that.

HUDSON: There’s an idea in superficial textbooks and the public media that if companies make a large profit, they make it by being productive. And with …

HEDGES: Which is still in textbooks, isn’t it?

HUDSON: Yes. And also that if a stock price goes up, you’re just capitalizing the profits – and the stock price reflects the productive role of the company. But that’s not what’s been happening in the last ten years. Just in the last two years, 92 percent of corporate profits in America have been spent either on buying back their own stock, or paid out as dividends to raise the price of the stock.

HEDGES: Explain why they do this.

HUDSON: About 15 years ago at Harvard, Professor Jensen said that the way to ensure that corporations are run most efficiently is to make the managers increase the price of the stock. So if you give the managers stock options, and you pay them not according to how much they’re producing or making the company bigger, or expanding production, but the price of the stock, then you’ll have the corporation run efficiently, financial style.

So the corporate managers find there are two ways that they can increase the price of the stock. The first thing is to cut back long-term investment, and use the money instead to buy back their own stock. But when you buy your own stock, that means you’re not putting the money into capital formation. You’re not building new factories. You’re not hiring more labor. You can actually increase the stock price by firing labor.

HEDGES: That strategy only works temporarily.

HUDSON: Temporarily. By using the income from past investments just to buy back stock, fire the labor force if you can, and work it more intensively. Pay it out as dividends. That basically is the corporate raider’s model. You use the money to pay off the junk bond holders at high interest. And of course, this gets the company in trouble after a while, because there is no new investment.

So markets shrink. You then go to the labor unions and say, gee, this company’s near bankruptcy, and we don’t want to have to fire you. The way that you can keep your job is if we downgrade your pensions. Instead of giving you what we promised, the defined benefit pension, we’ll turn it into a defined contribution plan. You know what you pay every month, but you don’t know what’s going to come out. Or, you wipe out the pension fund, push it on to the government’s Pension Benefit Guarantee Corporation, and use the money that you were going to pay for pensions to pay stock dividends. By then the whole economy is turning down. It’s hollowed out. It shrinks and collapses. But by that time the managers will have left the company. They will have taken their bonuses and salaries and run.

HEDGES: I want to read this quote from your book, written by David Harvey, in A Brief History of Neoliberalism, and have you comment on it.

“The main substantive achievement of neoliberalism has been to redistribute rather than to generate wealth and income. [By] ‘accumulation by dispossession’ I mean … the commodification and privatization of land, and the forceful expulsion of peasant populations; conversion of various forms of property rights (common collective state, etc.) into exclusive private property rights; suppression of rights to the commons; … colonial, neocolonial, and the imperial processes of appropriation of assets (including natural resources); … and usury, the national debt and, most devastating at all, the use of the credit system as a radical means of accumulation by dispossession. … To this list of mechanisms, we may now add a raft of techniques such as the extraction of rents from patents, and intellectual property rights (such as the diminution or erasure of various forms of common property rights, such as state pensions, paid vacations, and access to education, health care) one through a generation or more of class struggle. The proposal to privatize all state pension rights, pioneered in Chile under the dictatorship is, for example, one of the cherished objectives of the Republicans in the US.”

This explains the denouement. The final end result you speak about in your book is, in essence, allowing what you call the rentier or the speculative class to cannibalize the entire society until it collapses.

HUDSON: A property right is not a factor of production. Look at what happened in Chicago, the city where I grew up. Chicago didn’t want to raise taxes on real estate, especially on its expensive commercial real estate. So its budget ran a deficit. They needed money to pay the bondholders, so they sold off the parking rights to have meters – you know, along the curbs. The result is that they sold to Goldman Sachs 75 years of the right to put up parking meters. So now the cost of living and doing business in Chicago is raised by having to pay the parking meters. If Chicago is going to have a parade and block off traffic, it has to pay Goldman Sachs what the firm would have made if the streets wouldn’t have been closed off for a parade. All of a sudden it’s much more expensive to live in Chicago because of this.

But this added expense of having to pay parking rights to Goldman Sachs – to pay out interest to its bondholders – is counted as an increase in GDP, because you’ve created more product simply by charging more. If you sell off a road, a government or local road, and you put up a toll booth and make it into a toll road, all of a sudden GDP goes up.

If you go to war abroad, and you spend more money on the military-industrial complex, all this is counted as increased production. None of this is really part of the production system of the capital and labor building more factories and producing more things that people need to live and do business. All of this is overhead. But there’s no distinction between wealth and overhead.

Failing to draw that distinction means that the host doesn’t realize that there is a parasite there. The host economy, the industrial economy, doesn’t realize what the industrialists realized in the 19th century: If you want to be an efficient economy and be low-priced and under-sell competitors, you have to cut your prices by having the public sector provide roads freely. Medical care freely. Education freely.

If you charge for all of these, you get to the point that the U.S. economy is in today. What if American factory workers were to get all of their consumer goods for nothing. All their food, transportation, clothing, furniture, everything for nothing. They still couldn’t compete with Asians or other producers, because they have to pay up to 43% of their income for rent or mortgage interest, 10% or more of their income for student loans, credit card debt. 15% of their paycheck is automatic withholding to pay Social Security, to cut taxes on the rich or to pay for medical care.

So Americans built into the economy all this overhead. There’s no distinction between growth and overhead. It’s all made America so high-priced that we’re priced out of the market, regardless of what trade policy we have.

HEDGES: We should add that under this predatory form of economics, you game the system. So you privatize pension funds, you force them into the stock market, an overinflated stock market. But because of the way companies go public, it’s the hedge fund managers who profit. And it’s those citizens whose retirement savings are tied to the stock market who lose. Maybe we can just conclude by talking about how the system is fixed, not only in terms of burdening the citizen with debt peonage, but by forcing them into the market to fleece them again.

HUDSON: Well, we talk about an innovation economy as if that makes money. Suppose you have an innovation and a company goes public. They go to Goldman Sachs and other Wall Street investment banks to underwrite the stock to issue it at $40 a share. What’s considered a successful float is when, immediately, Goldman and the others will go to their insiders and tell them to buy this stock and make a quick killing. A “successful” flotation doubles the price in one day, so that at the end of the day the stock’s selling for $80.

HEDGES: They have the option to buy it before anyone else, knowing that by the end of the day it’ll be inflated, and then they sell it off.

HUDSON: That’s exactly right.

HEDGES: So the pension funds come in and buy it at an inflated price, and then it goes back down.

HUDSON: It may go back down, or it may be that the company just was shortchanged from the very beginning. The important thing is that the Wall Street underwriting firm, and the speculators it rounds up, get more in a single day than all the years it took to put the company together. The company gets $40. And the banks and their crony speculators also get $40.

So basically you have the financial sector ending up with much more of the gains. The name of the game if you’re on Wall Street isn’t profits. It’s capital gains. And that’s something that wasn’t even part of classical economics. They didn’t anticipate that the price of assets would go up for any other reason than earning more money and capitalizing on income. But what you have had in the last 50 years – really since World War II – has been asset-price inflation. Most middle-class families have gotten the wealth that they’ve got since 1945 not really by saving what they’ve earned by working, but by the price of their house going up. They’ve benefited by the price of the house. And they think that that’s made them rich and the whole economy rich.

The reason the price of housing has gone up is that a house is worth whatever a bank is going to lend against it. If banks made easier and easier credit, lower down payments, then you’re going to have a financial bubble. And now, you have real estate having gone up as high as it can. I don’t think it can take more than 43% of somebody’s income to buy it. But now, imagine if you’re joining the labor force. You’re not going to be able to buy a house at today’s prices, putting down a little bit of your money, and then somehow end up getting rich just on the house investment. All of this money you pay the bank is now going to be subtracted from the amount of money that you have available to spend on goods and services.

So we’ve turned the post-war economy that made America prosperous and rich inside out. Somehow most people believed they could get rich by going into debt to borrow assets that were going to rise in price. But you can’t get rich, ultimately, by going into debt. In the end the creditors always win. That’s why every society since Sumer and Babylonia have had to either cancel the debts, or you come to a society like Rome that didn’t cancel the debts, and then you have a dark age. Everything collapses.

 

Michael Hudson’s new book, Killing the Host is published in e-format by CounterPunch Books and in print by Islet. He can be reached via his website, mh@michael-hudson.com. Chris Hedges’s latest book is Days of Destruction, Days of Revolt, illustrated by Joe Sacco.

The Rise of the Corporatocracy

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By Graham Vanbergen

Source: The European Financial Review

Transnational corporations are wreaking havoc on financial, economic, social and ecological systems in a creeping colonisation of public life where just 147 organisations now controls 40 per cent of global trade.

We all have a feeling that something is not quite right any more. We know there is a creeping colonisation of public life by corporations because we know a slow motion coup d’état is taking place by transnational organisations facilitated by our political leaders. The incontrovertible proof stares at us in the face every day with wave after wave of financial, economic, social and ecological crisis.

A clear and troublesome picture of corporate power has emerged in recent years where rising inequality is now simply the distinction of expanding corporate activity and those being left behind.

A study in 2000 by Corporate Watch, Global Policy Forum and the Institute for Policy Studies (IPS) revealed some alarming facts about a rising corporatocracy that should have been brought to heel by western government’s years ago. Instead, corporations are now literally at the helm.

At the turn of the millennia this study confirmed that whilst there were around 40,000 worldwide corporations, just 200 had true global reach and influence. These colossal organisations, many larger than national economies controlled well over one quarter of global economic activity whilst 80 per cent of the world’s population were either left out completely, marginalised or were net losers as a direct result of their activities.1

The decade long IPS study made for very uncomfortable reading. The most alarming amongst a long list of culpability is that as corporate profits soared – wealth concentration followed, and it did so in an environment of stagnating workers wages.

For perspective, the report highlighted that of the 100 largest economies in the world, 51 were corporations; only 49 were countries. Wal-Mart for example, was bigger than 161 countries. Mitsubishi was larger than the fourth most populous nation on earth: Indonesia. General Motors was bigger than Denmark. Ford was bigger than South Africa.

The top 200 corporations were bigger than the combined economies of 182 countries and have twice the economic influence than 80 per cent of all humanity.

You might find it something of a surprise to learn that these same 200 global corporations employed less than one third of one per cent of the world’s people – just 18.8 million.

Trading, automobiles, banking, retailing and electronics are where most corporate concentration accumulates and even then one third of all trade is transactions among various units of the same corporation.

By 2012, the top 25 corporations in the world were earning $177,000 per second with Wal-Mart’s annual revenue having risen to $470 billion.

Today the outlook is even worse. Three mathematicians at Zurich Polytechnic Institute published a quite remarkable in-depth report on transnational corporations (TNCs) according to their connections to other TNCs. Beginning with a data base that has now grown to 43,000 corporations, they refine the ownership connections, up and downstream and highlight the most interconnected of these companies. Finally, they arrive at a “core” of 147 companies that now controls an astonishing 40 per cent of the economic value of the entire sample and therefore, global trade.

In little more than a decade, TNCs share of the global market place has increased dramatically whilst competition fell by almost the same factor.

And yet, armed with such damning and conclusive information, the situation continues to deteriorate as politicians abandon any fragments of morality in favour of lucrative revolving door careers leaving entire nations with little more than the hollowed out remains of once thriving economies based on manufacturing and the corpse of democracy.

In the late 1970’s the share of economic value going to labour in the form of wages in Europe was around 70 per cent of GDP. Over the decades there has been a dire shift. Capital has had a very favourable 10 per cent rise in returns and by contrast labour a 10 per cent fall. With an economy worth €13 trillion, the loss to an already stretched working and middle class is €1.3 trillion a year. Shareholders used to be content with returns of say 3 or 4 per cent but now demand near on double digit returns or the CEO is ousted. The consequence being that corporations want to win no matter what the cost.

In Susan George’s “State of Corporations” the observation is made that “From the mid-1990s, the largest American banking, securities, insurance and accounting transnational corporations joined forces and, employing 3000 people, spent $5 billion to get rid of all the New Deal laws passed under the Roosevelt administration in the 1930s – the very laws that had protected the American economy for over sixty years. Through this collective lobbying push, they won total freedom to remove any money-losing assets from their balance-sheets and move them into “shadow” banks that appeared nowhere on their balance sheets. They became free to create and trade hundreds of billions worth of toxic derivative products, such as bundles of sub-prime mortgages, with no regulation whatever.”2

The peak of their collective effort was a global implosion of the finance industry in 2008 and eight years later its lingering state of decline now threatens the Great Depression of 1929 as the longest running recession in history – already the slowest recovery ever recorded.

In the US alone, over 10 million families had their homes repossessed and according to Bloomberg, $14.5 trillion, or 33%, of the value of the world’s companies and nearly 14% of US GDP was wiped out by the crisis. This forgets the effects on developing and third world economies where $3.3 trillion of promised aid remains just that – promised and unpaid.

In the era of “too big to fail and jail” virtually no one was brought to heel or sent to prison for such devastating crimes. Today, the banking industry is almost totally out of control. Daily derivative trading is now a third greater than at the peak of the 2008 crisis. Fraud, rigging, insider dealing and money laundering reach a new summit of lawlessness each day. In the top twenty of global corporations, five are banks.

In the meantime, learning from previous successes, corporate lobbyists now termed “expert committees” meet daily with EU Commission officials to hammer out a trade deal whilst almost no consumer or environmental organisations are represented. Civil society is excluded, as are their representatives in the guise of MEP’s with the illusion of democracy fading fast.

Corporations now place their profits in ultra low or no tax jurisdictions and their losses in high-tax ones, where an estimated $32 trillion is shielded from making any contribution to the societies they extract their wealth from with little or no scrutiny from government’s.

What we now have is anarchy by very rich and powerful corporations. The roll call of shame is never-ending – auto manufacturers, banking, pharmaceutical, food manufacturers, energy industries to name few.

Epic financial crimes, monumental tax evasion, ecological damage on an industrial scale and non-stop illegal wars to ensure a never-ending resource supply is a shameful system based on corporate greed. In its wake we now have 1920’s style rampant inequality and rising poverty reminiscent of the era of Dickens. All of this somehow is the new normal.3

Steal a loaf of bread and it’s prison for you, loot an entire country and it’s a Knighthood. For instance, the British public believes as a result of a long, malicious class-war style political campaign, that benefits fraud is a huge social problem. A recent poll by the workers union TUC showed people believe that 27% of the welfare budget is fraudulently claimed. The figure is in fact 0.7%. As it turns out benefit underpayments by the government outweighs benefit fraud.

Contrast that with one of Britain’s biggest fraudsters – HSBC. In a few short years it has been caught laundering billions of ill-gotten gains on behalf of dictators and despots, international gangsters, traffickers, drug barons, murderers and every other criminal down a particularly odious food chain. It was also caught red-handed in the huge Swiss tax evasion scandal benefitting corporations before we even got to hear of the Panama Papers. The Conservatives gave its boss Stephen Green a plum ministerial role as trade minister in 2011 and he sits in the House of Lords as a Tory peer in an irony lost on themselves and the media.4

Globalisation has continually compounded corporate power and consolidated its influential reach on global governance. Again, trade deals such as TTP and TTIP where entire continents are subjected to corporate domination are evidence of that, but their reach has a more sinister outcome. Corporate lobbyists who now have unprecedented privilege granted by global decision makers to sideline sovereign regulations designed to protect citizen rights and the environment have infiltrated the United Nations.

The UN has a special section for corporations called the “Global Compact” founded about fifteen years ago by Kofi Annan and the then President of Nestle. To become a member, a corporation need only sign on for fifteen principles in the areas of human or labour rights and the environment.5

The corporations of the Global Compact added themselves to members of the World Business Council for Sustainable Development and other trade bodies such as the Chambers of Commerce. When the UN held its “environmental” conference in Rio 2012, business completely dominated proceedings for the first time. Corporate interests now have a disproportionality high level of political influence on a truly global scale.

A good example would be Cecilia Malmstrom, the lead EU Trade Commissioner of the TTIP negotiations between Europe and the US. She was questioned by a reporter from The Independent a few months back on why she continued her persistent promotion of the deal against such massive public opposition, her response was: “I do not take my mandate from the European people.”6

Just a few weeks ago we discover that the European Parliament voted in favour of the “Trade Secrets Protection Directive” – a law that gives corporations alarming new superpowers to prosecute and criminalise whistleblowers, journalists, and news organisations that publish leaked internal documents.

As Dr. Paul Craig Roberts former Assistant Secretary of the US Treasury for Economic Policy and associate editor of the Wall Street Journal put it recently “politically powerful corporations have gained the power in Western “democracies” to sacrifice the welfare of all populations to corporate greed for profit regardless of the cost to peoples, countries, and societies. American “democratic capitalism” is total and irredeemable. TTIP gives corporations unaccountable power over governments and peoples”

Democracy is now on the verge of going from farce to tragedy as a direct result of the indomitable rise of corporate power.

We now live in an era where the fetid reality between rich and poor is demonstrated no better than the rapidly rising inequality of wealth distribution. In 1976 America, the top 1% earned 9 per cent of the national wealth. Thirty years later and their take of national wealth has almost tripled to 24 per cent.7

One of the greatest challenges of our time is to understand the influence of transnational corporations over public policy and how we can engineer a form of capitalism that benefits a wider range of people whilst wrestling social and environmental injustice back into the safe arms of a fully functional democracy.

Currently, the only thing left in opposition now is a general public under siege who protest in cities across Europe and America and present petitions to their respective governments representing millions of citizens. These are the same people who have to pay for all this (legalised) criminality in lost services, employment and savings, yet remain unheard.

 

References
1. The rise of corporations – Global Policy Forum https://www.globalpolicy.org/component/content/article/221/47211.html
2. Susan George – State of Corporations
3. https://www.tni.org/sites/www.tni.org/files/download/state_of_corporation_chapter.pdf
4. UK has poorest people in Western Europe
5. http://www.ibtimes.co.uk/uks-poorest-among-most-financially-stricken-europe-1452895
6. HSBC’s Stephen Green appointed trade minister amid banking scandal
7. http://www.independent.co.uk/news/business/news/hsbc-scandal-banks-former-boss-stephen-green-resigns-from-uk-finance-lobbying-group-10046438.html
8. UN infiltrated by corporations
9. https://www.unglobalcompact.org/docs/news_events/9.1_news_archives/2013_12_06/Secretary-GeneralReportA68326.pdf
10. Head of EU TTIP negotiations quote
11. Wealth inequality in America – VIDEO

Fellow Americans, Wake Up & Escape The Matrix

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Where Do Matters Stand?

On the eve of World War II the United States was still mired in the Great Depression and found itself facing war on two fronts with Japan and Germany. However bleak the outlook, it was nothing compared to the outlook today.

By Paul Craig Roberts

Source: Covert Geopolitics

Has anyone in Washington, the presstitute Western media, the EU, or NATO ever considered the consequences of constant military and propaganda provocations against Russia? Is there anyone in any responsible position anywhere in the Western world who has enough sense to ask: “What if the Russians believe us? What if we convince Russia that we are going to attack her?”

The same can be asked about China.

The recklessness of the White House Fool and the media whores has gone far beyond mere danger. What do the Russians think when they see that the Democratic Party intends to elect Hillary Clinton president of the US? Hillary is a person so crazed that she declared the president of Russia to be “the new Hitler” and organized through her underling, neocon monster Victoria Nuland, the overthrow of the democratically elected government of Ukraine. Nuland installed Washington’s puppet government in a former Russian province that until about 20 years ago was part of Russia for centuries.

I would bet that this tells even the naive pro-western part of the Russian government and population that the United States intends war with Russia.

Ever since Russia stood up to Obama over Syria, the Russians have been experiencing hostile propaganda and military operations on their borders. These provocations are justified by Washington and its NATO vassals as a response to “Russian aggression.” Russian aggression consists of nothing but obviously false assertions that Russia is about to invade the Baltics, Poland, and Romania and recreate the Soviet Empire, the Eastern European part of which, together with the former Russian provinces of Georgia and Ukraine, now belong to the American Empire.

The Russians know that the propaganda about “Russian aggression” is a lie. What is the purpose of the lie other than to prepare the Western peoples for war with Russia?

There is no other explanation.

Even morons such as Obama, Merkel, Hollande, and Cameron should be capable of understanding that it is extremely dangerous to convince a major military power that you are going to attack. To simultaneously also convince China doubles the danger.

Clearly, the West is incapable of producing leadership capable of preserving life on earth.

What can be done when the entire West demonstrates a death wish for Planet Earth?

Until the criminal regimes of Clinton, George W. Bush, and Obama, American presidents from John F. Kennedy forward worked to reduce tensions with the Soviets. Kennedy worked with Khrushchev to reduce tensions caused by US missiles in Turkey and Soviet missiles in Cuba. President Nixon negotiated SALT I (the Strategic Arms Limitation Treaty) and the Anti-Ballistic Missile Treaty. President Carter negotiated SALT II, which was never ratified by the US Senate but was observed by the executive branch. President Reagan negotiated with Soviet leader Gorbachev the end of the Cold War. President George H.W. Bush in exchange for Gorbachev’s agreement to the reunification of Germany promised that NATO would not move one inch to the East.

All of these achievements were thrown away by the neoconized Clinton, George W. Bush, and Obama regimes, each a criminal regime on par with Nazi Germany.

Today life on Planet Earth is far less secure than during the darkest days of the Cold War. Whatever threat global warming poses, it is miniscule compared to the threat of nuclear winter. If the evil that is concentrated in Washington and its vassals perpetrates nuclear war, cockroaches will inherit the earth.

I have been warning about the growing danger of a nuclear war resulting from the arrogance, hubris, ignorance, and evil personified by Washington. Recently, four knowledgable Russian-Americans spelled out the likely consequences of trying to drive Russia to submission with war threats: http://www.paulcraigroberts.org/2016/06/03/41522/

See also: http://www.paulcraigroberts.org/2016/05/28/as-our-past-wars-are-glorified-this-memorial-day-weekend-give-some-thought-to-our-prospects-against-the-russians-and-chinese-in-world-war-iii/

Don’t expect the brainwashed American population to have the moral conscience and fortitude to prevent nuclear war or even the intelligence to prevent their own vaporization. In a recent article in the Wall Street Journal Scott Sagan and Benjamin Valentino report that 59% of the US population support attacking Iran with nuclear weapons in the event that Iran sank one US Navy ship: http://www.wsj.com/articles/would-the-u-s-drop-the-bomb-again-1463682867

Republicans were much more likely than Democrats to approve attacking Iran with nuclear weapons with 81% of Republicans approving nuclear war compared to 47% of Democrats. Yet, the Democrats are behind Hillary who would be the first to use nuclear weapons. After all, a feminized woman has to prove how tough she is, just as Margaret Thatcher was “the Iron Lady.”

Before it is too late for Americans and all of humanity, arrogant Americans need to recall that “those who live by the sword, die by the sword.”

The economic picture is equally dismal and unpromising. The latest payroll jobs report was even more awful than reported. Hardly any new jobs were created, but what largely escaped reporting is the fact that the economy actually lost 59,000 full-time jobs.

Increasingly the US economy consists of part-time jobs that cannot support an independent existence. Thus, more Americans age 19-34 live at home with parents than independently with spouses or partners. Fully half of 25-year old Americans live in their childhood rooms in their parents’ homes.

This is the “New Economy” that the filthy lying neoliberal economists promised would be reward for the American work force giving up their manufacturing and professional skill jobs to foreigners. What a monstrous lie the neoliberal economists told so that corporate executives and shareholders could put into their own pockets the living wage of the American work force. These neoliberal economists, and, alas, libertarian “free market” ones, have not been held accountable for their impoverishment of the American work force deeply buried in debt with no future prospects.

Those few Americans who have any awareness are beginning to realize that the One Percent and the western governments that serve them are re-establishing feudalism. The brilliant and learned economist, Michael Hudson, has labeled our era the era of neo-feudalism.

He is correct. The majority of young Americans come out of university heavily indebted, primed for debtor prison. When half of 25-year olds cannot marry and form households, how can anyone believe that housing sales and prices are rising except as a result of speculative investors banking on rental income from a population that cannot even pay its student loans.

The United States is the sickest place on earth. There is no public or political discussion of any important issue or of the multiple crises that confront America or the crises that America brings to the world.

The American people are so stupid and unaware that they are capable of electing a criminal and a warmonger like Hillary president of the United States and be proud of it.

These “tough” Americans are so frightened of hoax dangers, such as “Muslim terrorists” and “Russian aggression” that they willingly sacrificed their depleted pocketbooks, the Constitution of the United States—an act of treason on the part of the American people who utterly failed their responsibility to protect the Constitution—and their own liberty to a universal police state that has all power over them.

It is extraordinary that once-proud, once-great European peoples look for leadership from a country of moronic non-entities who have pissed away the liberty, security, and prosperity that their Founding Fathers gave to them.

Fellow Americans, if you care to avoid vaporization and, assuming we do avoid it, live a life other than serfdom, you must wake up and realize that your most deadly enemy is Washington, not the hoax of “Russian aggression,” not the hoax of “Muslim terrorism,” not the hoax of “domestic extremism,” not the hoax of welfare bankrupting America, not the hoax of democracy voting away your wealth, which Wall Street and the corporations have already stolen and stuck in their pockets.

If you cannot wake up and escape The Matrix, your doom will bring the doom of the planet.

Obama’s Rape of Libya Part II

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By Stephen Lendman

Source: SteveLendmanBlog

In 2011, he and then secretary of state Hillary Clinton bore full responsibility for the rape and destruction of Libya, transforming Africa’s most developed country into a cauldron of endless violence, instability, turmoil and unspeakable human suffering – the aftermath of all US imperial wars.

They flagrantly violated international, constitutional and US statute laws – attacking another country threatening no others, killing tens of thousands of noncombatant men, women, children, the elderly and infirm.

They were warned in advance of chaotic conditions following an attack but went ahead anyway. They knew extremist groups would flourish in its aftermath – ISIS, Al Qaeda and others Washington supports.

Libya today has no central authority. Based in Tripoli, US-installed puppet rule (the so-called Government of National Accord – GNA) controls one small part of the country – a rival Benghazi government, disparate groups and tribes most of it.

Endless violence, disorder, human deprivation and misery reflect daily life – the legacy of America’s “humanitarian intervention” and “responsibility to protect” – code language for naked aggression, war OF terror on humanity, the horror no one can imagine without experiencing it firsthand.

Last year, war correspondent Jon Lee Anderson said “(t)here is no overstating the chaos of post-Qaddafi Libya.” Various elements compete for control. “Armed militias roam the streets…(N)early a third of the country’s population has fled across the border to Tunisia.” Others head for Europe – treated with disdain and internment under concentration camp conditions on arrival.

No country may attack another except in self-defense and only if authorized by Security Council members. In 2007, candidate Obama, a one-time University of Chicago Law School senior lecturer, said the following:

“The president does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation.”

He’s terror-bombed seven countries and used terrorist foot soldiers to do his dirty work since taking office. He repeatedly lied to the public about his actions.

Time and again he’s proved lawless, ruthless and never to be trusted. Raping Libya a second time has nothing to do with protecting America’s “national security interests” or restoring stability to a war-torn country – everything to do with US imperial viciousness.

Obama saying the United States, Europe and other countries “have a great interest in seeing stability in Libya because the absence of stability has helped to fuel some of the challenges that we’ve seen in terms of the migration (sic) crisis in Europe and some of the humanitarian tragedies that we’ve seen in the open seas between Libya and Europe” ignored America’s responsibility for transforming a stable nation under responsible leadership into dystopian hellishness.

He massacred Libyans mercilessly while claiming he “did the right thing (by) preventing what could have been…a bloodbath in Libya…”

On Tuesday, he lied calling indefinite aggression a “30-day mission” – on the phony pretext of combating the scourge of ISIS Washington created and supports.

He’s raped Libya since 2011, new terror-bombing continuing where earlier assaults left off, virtually certain to go on indefinitely, perhaps with varying degrees of intensity, supplemented with US and other NATO special forces on the ground operating covertly.

His tenure ends in January. If Hillary succeeds him, perhaps she’ll turn the entire region and beyond ablaze.

 

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

Related Article: Libya: The US is now bombing a state it has already destroyed