Tag Archives: Big Oil

America’s ‘Unlimited Imperialists’

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By Francis Boyle

Source: Consortium News

Historically the latest eruption of American militarism in the 21st Century is akin to that of America opening the 20th Century by means of the U.S.-instigated Spanish-American War in 1898.

The then Republican administration of President William McKinley grabbed their colonial empire from Spain in Cuba, Puerto Rico, Guam, and the Philippines; inflicted a near genocidal war against the Filipino people; while at the same time illegally annexing the Kingdom of Hawaii and subjecting the Native Hawaiian people (who call themselves the Kanaka Maoli) to genocidal conditions.

Additionally, McKinley’s military and colonial expansion into the Pacific was also designed to secure America’s economic exploitation of China pursuant to the euphemistic rubric of the “open door” policy.   But over the next four decades America’s aggressive presence, policies, and practices in the so-called “Pacific” Ocean would ineluctably pave the way for Japan’s attack at Pearl Harbor on Dec. 7, 1941, and thus America’s precipitation into the ongoing Second World War.

Today a century later, the serial imperial aggressions launched, waged, and menaced by the neoconservative Republican Bush Junior administration, then the neoliberal Democratic Obama administration and now the reactionary Trump administration threaten to set off World War III.

This Time the Stakes are Higher

By shamelessly exploiting the terrible tragedy of September 11, the Bush Junior administration set forth to steal a hydrocarbon empire from the Muslim states and peoples of color living in Central Asia, the Middle East and Africa under the bogus pretexts of (a) fighting a war against “international terrorism” or “Islamic fundamentalism”; and/or (b) eliminating weapons of mass destruction; and/or (c) promoting democracy; and/or (d) self-styled humanitarian intervention and its avatar “responsibility to protect” (R2P).

Only this time the geopolitical stakes are infinitely greater than they were a century ago:  control and domination of the world’s hydrocarbon resources and thus the very fundaments and energizers of the global economic system – oil and gas.

The Bush Junior and Obama administrations targeted the remaining hydrocarbon reserves of Africa, Latin America (e.g., the Pentagon’s reactivating the Fourth Fleet in 2008), and Southeast Asia for further conquest and domination, together with the strategic choke-points at sea and on land required for their transportation (e.g., Syria, Yemen, Somalia, Djibouti).  Today the U.S. Fourth Fleet threatens oil-rich Venezuela and Ecuador, along with Cuba.

Toward accomplishing that first objective, in 2007, the neoconservative Bush Junior administration announced the establishment of the U.S. Pentagon’s Africa Command (AFRICOM) in order to better control, dominate, steal, and exploit both the natural resources and the variegated peoples of the continent of Africa, the very cradle of our human species.

In 2011 Libya and the Libyans proved to be the first victims to succumb to AFRICOM under the neoliberal Obama administration, thus demonstrating the truly bi-partisan and non-partisan nature of U.S. imperial foreign policy decision-making. Let us put aside as beyond the scope of this article, the American conquest, extermination, and ethnic cleansing of the Native Americans from the face of the continent.

Since America’s instigation of the Spanish-American War in 1898, U.S. foreign policy decision-making has been alternatively conducted by reactionary imperialists, conservative imperialists, and liberal imperialists for the past 120 years and counting.

Trump is just another representative for U.S. imperialism and neoliberal capitalism. He forthrightly and proudly admitted that the United States is in the Middle East in order to steal their oil. At least he was honest about it. Unlike his predecessors who lied about the matter going back to President George Bush Sr. with his War for Persian Gulf oil against Iraq in 1991. Just recently, Trump publicly threatened illegal U.S. military intervention against oil-rich Venezuela and now he’s poised to strike Syria.

It’s About Power, Not Just Resources

But oil and other resources are not the only U.S. motive. Enforcing its global power and undermining or removing leaders who defy it are also at play.

As my teacher, mentor, and friend, the late, great Professor Hans Morgenthau, who coined the term “unlimited imperialism” in his seminal 1948 critique of U.S. foreign policy, Politics Among Nations, said:

          “The outstanding historic examples of unlimited imperialism are the expansionist policies of Alexander the Great, Rome, the Arabs in the seventh and eighth centuries, Napoleon I, and Hitler. They all have in common an urge toward expansion which knows no rational limits, feeds on its own successes and, if not stopped by a superior force, will go on to the confines of the political world. This urge will not be satisfied so long as there remains anywhere a possible object of domination–a politically organized group of men which by its very independence challenges the conqueror’s lust for power. It is, as we shall see, exactly the lack of moderation, the aspiration to conquer all that lends itself to conquest, characteristic of unlimited imperialism, which in the past has been the undoing of the imperialistic policies of this kind…”

Since September 11, 2001, it is the Unlimited Imperialists along the lines of Alexander, Rome, Napoleon, and Hitler who have been in charge of conducting American foreign policy decision-making.  The factual circumstances surrounding the outbreaks of both the First World War and the Second World War currently hover like twin Swords of Damocles over the heads of all humanity.

 

Francis Boyle is a professor of international law at the University of Illinois Urbana-Champaign. Among his many books is “Destroying World Order.”

Big Pharma, Big Oil and Big Banks Meet the Definition of Terrorists

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Common threads persist throughout definitions of terrorism: violence, injury or death, intimidation, intentionality, multiple targets and political motivation. Big pharma, big oil and big banks meet them all.

By Paul Buchheit

Source: Mint Press News

Various definitions of terrorism have been proposed in recent years, by organizations such as the FBI, the State Department, Homeland Security, and the ACLU. Some common threads persist throughout the definitions: violence, injury or death, intimidation, intentionality, multiple targets, political motivation. All the criteria are met by pharmaceutical and oil and financial companies. They have all injured and intimidated the American public, and caused people to die, with intentionality shown by their refusal to acknowledge evidence of their misdeeds, and political motives clear in their lobbying efforts, where among all U.S. industries Big Pharma is #1, Big Oil is #5, and Securities/Investment #8.

The terror inflicted on Americans is real, and is documented by the facts to follow.

Big Pharma: Qualifying for Trump’s Call for Capital Punishment for Drug Dealers

In a Time Magazine article a young man named Chad Colwell says “I got prescribed painkillers, Percocet and Oxycontin, and then it just kind of took off from there.” Time adds: “Prescriptions gave way to cheaper, stronger alternatives. Why scrounge for a $50 pill of Percocet when a tab of heroin can be had for $5?” About 75% of heroin addicts used prescription opioids before turning to heroin.

Any questions about Big Pharma’s role in violence and death in America have been answered by the Centers for Disease Control and the American Journal of Public Health. Any doubts about Big Pharma’s intentions to intimidate the public have been put to rest by the many occasions of outrageous price gouging. And any uncertainty about political pressure is removed by its #1 lobbying ranking.

As for malicious intentions, Bernie Sanders noted, “We know that pharmaceutical companies lied about the addictive impacts of opioids they manufactured.” Purdue Pharma knew all about the devastating addictive effects of its painkiller Oxycontin, and even pleaded guilty in 2007 to misleading regulators, doctors, and patients about the drug’s risk. Now Purdue and other drug companies are facing a lawsuitfor “deceptively marketing opioids” and ignoring the misuse of their drugs.

No jail for the opioid pushers, though, just slap-on-the-wrist fines that can be made up with a few price increases. But partly as a result of Pharma-related violence, Americans are suffering “deaths of despair”— death by drugs, alcohol and suicide. Suicide is at its highest level in 30 years.

Big Oil: Decades of Terror

Any doubts about the ecological terror caused by fossil fuel companies have been dispelled by the World Health Organization, the American Lung Association, the United Nations, the Pentagon, cooperating governments, and independent research groups, all of whom agree that human-induced climate change is killing people.

The oil industry’s intentionality and political motives have been demonstrated by their refusal to admit the known truth, starting with Exxon, which has covered up its own climate research for 40 years, and continuing through multi-million dollar lobbying efforts by Amoco, the US Chamber of Commerce, General Motors, Koch Industries, and other corporations in their effort to dismantle the Kyoto Protocol against global warming.

Big Banks: Leaving Suicidal Former Homeowners Behind

Any doubts about the violence stemming from the 2008 mortgage crisis have been resolved by studies of recession-caused suicides. Both the British Journal of Psychiatry and the National Institutes of Healthfound definite links between the recession and the rate of suicides.

As with Big Pharma and Big Oil, intentionality and political motives are evident in the banking industry’s lobbying efforts on behalf of deregulation — leading to the same conditions that threatened American homeowners in 2008. There has also been a surge in the number of non-bank lenders, who are less subject to regulation.

Making it all worse are private developers, who make most of their profits by building fancy homes for the rich. And by avoiding affordable housing. Since the recession, Blackstone and other private equity firms — with government subsidies — have been buying up foreclosed houses, holding them till prices appreciate, and in the interim renting them back at exorbitant prices.

This is leaving more and more Americans out in the cold — literally. A head of household in the U.S. needs to make $21.21 an hour to afford a two-bedroom apartment at HUD standards, much more than the $16.38 they actually earn. Since the recession, the situation has continually worsened. From 2010 to 2016 the number of housing units priced for very low-income families plummeted 60 percent.

Here’s the big picture: Since the 1980s there’s been a massive redistribution of wealth from middle-class housing to the investment portfolios of people with an average net worth of $75 million. It’s not hard to understand the “deaths of despair” caused by the terror inflicted on people losing their homes.

 

The Global Elite is Insane Revisited

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By Robert J. Burrowes

In 2014 I wrote an article titled ‘The Global Elite is Insane’. I want to elaborate what I explained in the earlier article so that people have a clearer sense of what we are up against in our struggle to create a world of peace, justice and ecological sustainability.

Of course, as I explained previously, it is not just the global elite that is insane. All those individuals – politicians, businesspeople, academics, corporate media editors and journalists, judges and lawyers, bureaucrats…. – who serve the elite, including by not exposing and resisting it, are also insane. And it is important to understand this if we are to develop and implement effective strategies to resist elite violence, exploitation and destruction but also avert the now-imminent human extinction driven by their insane desire for endless personal privilege, corporate profit and political control whatever the cost to Earth’s biosphere and lifeforms (human and non-human alike).

But first, who constitutes the global elite? Essentially, it is those extremely wealthy individuals – notably including the Rothschild family, Jeff Bezos, Bill Gates, Warren Buffett, Amancio Ortega, Mark Zuckerberg, Carlos Slim, the Walton family and the Koch brothers – as well as the world’s other billionaires and millionaires. See ‘Bloomberg Billionaires Index’.

Testament to their secretly and long-accumulated wealth and power, a 2012 investigation concluded that rich individuals and their families have as much as $32 trillion of hidden financial assets – which excludes non-financial assets such as real estate, gold, yachts and racehorses – in offshore tax havens. See the Tax Justice Network.

If this sum was devoted to programs of social uplift then starvation, poverty, homelessness and other privations would vanish immediately and environmental restoration projects as well as research, development and implementation of visionary sustainability initiatives would flourish instantly. The idea of an ‘underdeveloped’ or ‘developing’ national economy would vanish from the literature on Africa, Asia and Central/South America.

In addition to these individuals, however, the global elite includes the major multinational corporations, particularly including the following – although, it should be noted, this list simplifies the picture considerably by ignoring the conglomerate nature of many of these corporations and not including many of the (more difficult to identify) private corporations that should be listed in any comprehensive presentation:

* the major weapons manufacturers (such as Lockheed Martin, Boeing, BAE Systems, Raytheon, Northrop Grumman and General Dynamics)

* the major banks (including Industrial & Commercial Bank of China, China Construction Bank, HSBC Holdings, JPMorgan Chase, Mitsubishi UFJ Financial Group and Bank of America) and their ‘industry groups’ like the International Monetary Conference

* the major investment companies (including BlackRock, Capital Group Companies, FMR, AXA, and JP Morgan Chase)

* the major financial services companies (including Berkshire Hathaway, AXA, Allianz and BNP Paribas)

* the major energy corporations including coal companies (such as Coal India, Adani Enterprises, China Shenhua Energy, China Coal Energy, Mechel, Exxaro Resources, Public Power, Glencore and Peabody Energy) as well as the oil and gas corporations (such as Saudi Aramco, Gazprom, Rosneft, PetroChina, ExxonMobil, Lukoil, BP, Royal Dutch Shell, Petrobras, Chevron, Novatek, Total S.A. and Eni)

* the major media corporations (including Alphabet [Google owner], Comcast, Disney, AT&T, News Corporation, Time Warner, Fox, Facebook, Bertelsmann and Baidu)

* the major marketing and public relations corporations (including Edelman, W2O Group, APCO Worldwide, Deksia, BrandTuitive, Fearless Media, and Citizen Group)

* the major agrochemical (pesticides, seeds, fertilizers) giants (including Bayer, Syngenta, Dow, Monsanto and DuPont)

* the major pharmaceutical corporations (including Johnson & Johnson, Roche, Pfizer, Novartis, Sanofi and GlaxoSmithKline)

* the major biotechnology (genetic mutilation) corporations (again including Johnson & Johnson, Roche, Pfizer and Novartis)

* the major mining corporations (including Glencore Xtrata, BHP Billiton, Rio Tinto, Vale, Anglo American, China Shenhua Energy, Freeport McMoRan Copper & Gold, and Barrick Gold)

* the major nuclear power corporations (including Areva, Rosatom, General Electric/Hitachi, Kepco, Mitsubishi, Babcock & Wilcox, BNFL, Duke Energy, McDermott International, Southern, NextEra Energy, American Electric Power, and Westinghouse)

* the major food multinationals (including Cargill, Archer Daniels Midland Company [ADM], Nestlé, PepsiCo, Coca-Cola, Unilever, Danone, General Mills, Kellogg’s, Mars, Associated British Foods and Mondelez)

* the major water corporations (including Veolia, Suez Environnement, ITT Corporation, United Utilities, Severn Trent, Thames Water, American Water Works).

Of course, the global elite also includes elite fora where various combinations of elite individuals from the corporate, political, media and academic worlds gather to plan their continuing violence against, and exploitation of, the Earth and its inhabitants. This is intended to consolidate and extend t heir control over populations, markets and resources to maximize their privilege, profit and power at the expense of the rest of us and life generally. Among intergovernmental organizations, it includes the United Nations, the World Bank and the International Monetary Fund.

A quick perusal of the agenda of such elite gatherings – including the World Economic Forum, the Bilderberg Group and the Trilateral Commission – reveals a comprehensive lack of interest, despite rhetoric and the occasional token mention, of pressing issues ranging from the threat of nuclear war and the climate catastrophe to the many ongoing wars, deepening exploitation within the global economy, extensive range of environmental threats and the refugee crisis, each of which they generated and now continue to deliberately exacerbate. See, for example, the agenda of the recent WEF meeting in Davos.

Primary servants of the global elite include political leaders in major industrialized countries (who legislate to progressively expand elite power, profit and privilege, such as Donald Trump’s recent tax cuts for the wealthy at the expense of social programs), the judges and lawyers (who defend elite power using the elite-designed and manipulated legal system: ever heard of a wealthy individual convicted in court and given any serious punishment or of any major corporation genuinely held to legal account for its exploitation of indigenous peoples or destruction of the natural environment?), as well as corporate media editors and journalists, entertainment industry personnel, academics, industry organizations (such as the European Round Table of Industrialists) that represent the interests of major corporations, so-called ‘think tanks’ (such as the Council on Foreign Relations and the Brookings Institution) and ‘philanthropic trusts’ (such as the Rockefeller, Carnegie and Ford foundations) all of which justify, ignore or divert attention from elite violence and exploitation.

Importantly too, primary servants of the global elite include those who work within elite-directed agencies, notably including those in the so-called ‘intelligence community’ (such as the US CIA, British MI6, Russian SVR RF, Chinese Ministry for State Security and Israeli Mossad), who perform elite functions in relation to spying, surveillance and secret assassinations (particularly of grassroots activists), ostensibly under the direction of national governments. But it also includes many lower-level servants such as those who work as political lobbyists or in the bureaucracy as well as the education, police and prison systems.

So why do I claim that the elite and those who serve them are insane?

Any dictionary will offer a simple definition of ‘sanity’ along the lines of ‘soundness of judgment or reason’ and ‘the ability to think and speak in a reasonable way and to behave normally’.

But if we use this definition of sanity then, obviously, ‘sanity’ must be interpreted to mean that it is ‘sound judgment, reasonable and normal’ to further perpetrate the violence and exploitation that are overwhelmingly characteristic of our world. After all, most people powerlessly accept this incredibly violent state of affairs and, if they discuss it, do so in terms of its merits, politically, economically, morally or otherwise. Few people argue, simply, that violence is just insane.

So I would like to propose a more rigorous definition of sanity: Sanity is the capacity to consider a set of circumstances, to carefully analyze the evidence pertaining to those circumstances, to identify the cause of any conflict or problem, and to respond appropriately, both emotionally and intellectually, to that conflict or problem with the intention of resolving it, preferably at a higher level of need satisfaction for all parties (including those of the Earth and all of its living creatures).

Clearly, my proposed definition of sanity is designed to imply that any conceptions we have of ‘sound judgment’, ‘reasonable’ and ‘normal’ mean that they are qualities we associate with individuals who possess the desirable capacity to improve the overall state of human affairs, whether an interpersonal relationship or geopolitically. This means, as an absolute minimum, the capacity to reduce violence or exploitation in one context or another.

You might, of course, accuse me of writing a definition of ‘sanity’ that serves my agenda to dramatically improve world order in the direction of peace, justice and sustainability. And you are right! But whose interest does it serve to have sanity defined as behavior that involves ‘sound judgment’ and is considered ‘reasonable and normal’ in the context of perpetuating extraordinary violence?

Alternatively, you might argue that my definition of insanity is too broad. Surely, you might say, we can account for many of the behaviors outlined above in terms of different belief systems, ideologies and religions. Doesn’t a person who believes in killing people to win wars (or for other reasons) just have a worldview different from those who believe that people should resolve conflict nonviolently? Doesn’t a capitalist just have a worldview different from those who believe that people should share resources equally? Doesn’t a person who believes in the unlimited accumulation of wealth just have a worldview different from those who believe in ecological sustainability?

But there is a more fundamental issue here. As I explained in my original article, cited at the beginning of this one: Do you really believe that someone who is capable of perpetrating extraordinary violence, inequity and biosphere-threatening behavior – and thus clearly incapable of experiencing and expressing the love, compassion, empathy and sympathy that would drive a nonviolent approach to the world – is sane? Given that emotional qualities such as love, compassion, empathy and sympathy are an evolutionary gift to those not seriously damaged during childhood, what happened to those individuals who do not possess them? See ‘Why Violence?’ and ‘Fearless Psychology and Fearful Psychology: Principles and Practice’.

Or, to explain it based on my longer definition of sanity highlighted above: Casual observation of the state of our world, including the primary threat of near-term human extinction through climate catastrophe or nuclear war – see ‘On Track for Extinction: Can Humanity Survive?’ – clearly reveals that none of the elite is paying considered attention to the perilous state of our world, analyzing the evidence in relation to it, identifying the cause(s) driving it or responding powerfully to end it. Why is this?

In essence, it is because one manifestation of their insanity drives them to deny reality to make huge profits from weapons production used to kill people, the burning of climate-destroying fossil fuels, environmental destruction (through, for example, mining and rainforest logging), commercial farming based on the poisoning and genetic mutilation of foods, the mass production and sale of poisoned, processed and nutritionally-depleted foods, the consumption of health-destroying and dependency-creating drugs, and control over the sale of water, once considered a human right. Moreover, insanity makes the elite do everything in its power to maintain this highly profitable state of affairs. See ‘Profit Maximization is Easy: Invest in Violence’.

Moreover, of course, there is no evidence of committed elite engagement in efforts to end the many local wars (from which they make huge profits), end corporate exploitation of human beings (which kills, through starvation alone, 100,000 people every day but from which they make huge profits) and nonhuman beings (which drives 200 species of life to extinction daily but from which they make huge profits) or end local environmental destruction in a myriad ways (from which they make huge profits).

So, in summary, given our ongoing rush to extinction, it is clear that those who exacerbate this threat through failure to consider and act with awareness (as well as encourage aware action by others) fail to satisfy the definition of sanity that I offered above. In short: Gambling on the future of humanity is not sane.

As an aside, it should be noted: Often enough too, the elite can rely on a largely insane population to mindlessly consume the latest consumer product, no matter how unnecessary, or they can rely on their marketing and advertising agents to persuade those of us who show the slightest reluctance to buy the latest inanity.

So with an insane global elite and its many insane servants as well as a largely insane consumer population, what can those of us who have the sanity to respond powerfully to the many threats to our survival do?

Well, if you want a child who is emotionally and intellectually engaged with the world and therefore capable of responding powerfully to their circumstances (which includes being able to resist the lure of serving the elite and being suckered by its marketing), then terrorizing the child into obedience is not the way to go about it. So, you might like to consider making ‘My Promise to Children’.

If you are sane enough to investigate the evidence and to act intelligently and powerfully in response to it, I encourage you to do so. One option you have if you find the evidence in relation to one or more of the threats mentioned above compelling, is to join those participating in ‘The Flame Tree Project to Save Life on Earth’.

If you are self-aware enough to know that you are inclined to avoid ‘difficult issues’ and to take the action that these require, then perhaps you could tackle this problem at its source by ‘Putting Feelings First’. Unfortunately, as mentioned above, few of us had a childhood that nurtured our sanity.

If you want to mobilize people to campaign effectively on the climate, war, rainforest destruction or any other elite-driven violence that threatens our future, consider developing a comprehensive nonviolent strategy to do so. See Nonviolent Campaign Strategy.

And if you want to participate in the worldwide effort to end the insanity we call violence in all of its manifestations, you are welcome to consider signing the online pledge of ‘The People’s Charter to Create a Nonviolent World’.

Elite insanity, if not stopped, will drive us out of existence. If you believe that the elite and their servants will ‘see the light’ before it is too late, I invite you to seek out the evidence to justify your belief. I have found none.

I also see no evidence that individual members of the elite will do the emotional healing necessary to be able to act sanely in response to the extinction-threatening crisis it has generated.

So it is up to those of us who can think and act sanely to stop the rush to extinction before it is too late.

Are you one of those people?

 

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

Robert J. Burrowes
P.O. Box 68
Daylesford, Victoria 3460
Australia

Email: flametree@riseup.net

Websites:
Nonviolence Charter
Flame Tree Project to Save Life on Earth
‘Why Violence?’
Feelings First
Nonviolent Campaign Strategy
Nonviolent Defense/Liberation Strategy
Anita: Songs of Nonviolence
Robert Burrowes
Global Nonviolence Network

Ecuador Endangered

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By John Seed

The tropical Andes of Ecuador are at the top of the world list of biodiversity hotspots in terms of vertebrate species, endemic vertebrates, and endemic plants. Ecuador has more orchid and hummingbird species than Brazil, which is 32 times larger, and more diversity than the entire USA.

In the last year, the Ecuadorean government has quietly granted mining concessions to over 1.7 million hectares (4.25 million acres) of forest reserves and indigenous territories. These were awarded to transnational corporations in closed-door deals without public knowledge or consent.

This is in direct violation of Ecuadorean law and international treaties, and will decimate headwater ecosystems and biodiversity hotspots of global significance. However, Ecuadorean groups think there is little chance of stopping the concessions using the law unless there is a groundswell of opposition from Ecuadorean society and strong expressions of international concern.

The Vice President of Ecuador, who acted as Coordinating Director for the office of ‘Strategic Sectors’, which promoted and negotiated these concessions, was jailed for 6 years for corruption. However, this has not stopped the huge giveaway of pristine land to mining companies.

From the cloud forests in the Andes to the indigenous territories in the headwaters of the Amazon, the Ecuadorean government has covertly granted these mining concessions to multinational mining companies from China, Australia, Canada, and Chile, amongst others.

The first country in the world to get the rights of Nature or Pachamama written into its constitution is now ignoring that commitment.

They’ve been here before. In the 80’s and 90’s Chevron-Texaco dumped 18 billion gallons of crude oil there in the biggest rainforest petroleum spill in history. This poisoned the water of tens of thousands of people and has done irreparable damage to ecosystems.

Now 14% of the country has been concessioned to mining interests. This includes a million hectares of indigenous land, half of all the territories of the Shuar in the Amazon and three-quarters of the territory of the Awa in the Andes.

Please sign the petition and contribute to the crowdfund which will help Ecuadorean civil society’s campaign to have these concessions rescinded.

As founder and director of the Rainforest Information Centre (RIC), I’ve had a long history of involvement with Ecuador’s rainforests.

Back in the late ‘80’s our volunteers initiated numerous projects in the country and one of these, the creation of the Los Cedros Biological Reserve was helped with a substantial grant from the Australian Government aid agency, AusAID. Los Cedros lies within the Tropical Andes Hotspot, in the country’s northwest. Los Cedros consists of nearly 7000 hectares of premontane and lower montane wet tropical and cloud forest teeming with rare, endangered and endemic species and is a crucial southern buffer zone for the quarter-million hectare Cotocachi-Cayapas Ecological Reserve. Little wonder that scientists from around the world rallied to the defense of Los Cedros.

In 2016 a press release from a Canadian mining company alerted us to the fact that they had somehow acquired a mining concession over Los Cedros! We hired a couple of Ecuadorean researchers and it slowly dawned on us that Los Cedros was only one of 41 “Bosques Protectores” (protected forests) which had been secretly concessioned. For example, nearly all of the 311,500 hectare Bosque Protector “Kutuku-Shaimi”, where 5000 Shuar families live, has been concessioned. In November 2017, RIC published a report by Bitty Roy, Professor of Ecology from Oregon State University and her co-workers, mapping the full extent of the horror that is being planned.

Although many of these concessions are for exploration, the mining industry anticipates an eightfold growth in investment to $8 billion by 2021 due to a “revised regulatory framework” much to the jubilation of the mining companies. Granting mineral concessions in reserves means that these reserves aren’t actually protected any longer as, if profitable deposits are found, the reserves will be mined and destroyed.

In Ecuador, civil society is mobilising and has asked their recently elected government to prohibit industrial mining “in water sources and water recharge areas, in the national system of protected areas, in special areas for conservation, in protected forests and fragile ecosystems”.

The indigenous peoples have been fighting against mining inside Ecuador for over a decade. Governments have persecuted more than 200 indigenous activists using the countries anti-terrorism laws to hand out stiff prison sentences to indigenous people who openly speak out against the destruction of their territories.

Fortunately, the new government has signalled an openness to hear indigenous and civil society’s concerns, not expressed by the previous administration.

In December 2017, a large delegation of indigenous people marched on Quito and President Moreno promised no NEW oil and mining concessions, and on 31 January 2018, Ecuador’s Mining Minister resigned a few days after Indigenous and environmental groups demanded he step down during a demonstration. On 31 January, The Confederation of Indigenous Nationalities of Ecuador, CONAIE, announced their support for the platform shared by the rest of civil society involved in the anti-mining work. Then on 15 February CONAIE called on the government to “declare Ecuador free of industrial metal-mining”, a somewhat more radical demand than that of the rest of civil society.

But we will need a huge international outcry to rescind the existing concessions: many billions of dollars of mining company profits versus some of the most biologically diverse ecosystems on Earth and the hundreds of local communities and indigenous peoples who depend on them.

PLEASE SIGN THE PETITION TO SUPPORT THEIR DEMANDS.

From 2006, under the Correa-Glas administration, Ecuador contracted record levels of external debt for highway and hydroelectric dam infrastructure to subsidize mining. Foreign investments were guaranteed by a corporate friendly international arbitration system, facilitated by the World Bank which had earlier set the stage for the current calamity by funding mineralogical surveys of national parks and other protected areas and advising the administration on dismantling of laws and regulations protecting the environment.

After 2008, when Ecuador defaulted on $3.2 billion worth of its national debt, it borrowed $15 billion from China, to be paid back in the form of oil and mineral exports. These deals have been fraught with corruption. Underselling, bribery and the laundering of money via offshore accounts are routine practice in the Ecuadorean business class, and the Chinese companies who now hold concessions over vast tracts of Ecuadorean land are no cleaner. Before leaving office Correa-Glas removed much of the regulation that had been holding the mining industry in check. And the corruption goes much deeper than mere bribes.

The lure of mining is a deadly mirage. The impacts of large-scale open pit mining within rainforest watersheds include mass deforestation, erosion, the contamination of water sources by toxins such as lead and arsenic, and desertification. A lush rainforest transforms into an arid wasteland incapable of sustaining either ecosystems or human beings.

Without a huge outcry both within Ecuador and around the world, the biological gems and pristine rivers and streams will be destroyed.

But it doesn’t have to be this way. Civil society needs an open conversation with the state. Ecuador has enormous potential to develop its economy based on renewable energy and its rich biodiversity can support a large ecotourism industry. In 2010 Costa Rica banned open-pit mining, and today has socioeconomic indicators better than Ecuador’s. Costa Rica also provides a ‘Payment for Ecosystem Services’ to landholders, and through this scheme has actually increased its rainforest area (from 20% to just over 50%).

Ecuador’s society and government must explore how an economy based on the sustainable use of pristine water sources, the country’s incomparable forests, and other natural resources is superior to an economy based on short term extraction leaving behind a despoiled and impoverished landscape. For example, studies by Earth Economics in the Intag region of Ecuador (where some of the new mining concessions are located) show that ecosystem services and sustainable development would offer a better economic solution let alone ecological and social.

The Rainforest Information Centre is launching a CROWDFUND to support Ecuadorean NGO’s to mobilise and to mount a publicity and education campaign and to help advance a dialogue throughout Ecuador and beyond: ‘Extractivism, economic diversification and prospects for sustainable development in Ecuador’.

We have set the crowdfund target at A$15,000 and Paul Gilding, ex-CEO of Greenpeace International is getting the ball rolling with an offer to match all donations $ for $ so that every $ that you donate will be matched by Paul. Donations are tax-deductible in Australia and the US.

When you sign the PETITION you will reach not just to the President of Ecuador and his cabinet. The petition is also addressed to the other actors who have set the stage for this calamity, being:

  • The World Bank who funded a project which collected geochemical data from 3.6 million hectares of Western Ecuador including seven national protected areas and dozens of forest reserves thus doing the groundwork for the mining industry.
  • The international governments and NGO’s who funded the creation and upkeep of these Bosques Protectores and indigenous reserves and other protected sites and who now need to persuade Ecuador to prevent their good work from being undone.
  • The governments of the countries whose mining companies are preparing this devastation.

Australian senator Lee Rhiannon (who was part of helping us create Los Cedros 30 years ago) wrote to the Canadian Environment Minister on our behalf and the Canadian Embassy has expressed concern about the bad name Cornerstone is giving the other Canadian mining projects. They have asked us for a meeting to discuss the reports of bad business practices by the company. Likewise, the Chinese government is beginning to develop some guidance which will come into effect in March 2018. We are lobbying the Australian government to put pressure on BHP, Solgold and other Australian companies preparing to mine protected forests and indigenous reserves in Ecuador.

Visit Ecuador Endangered for more links to the history and causes of Ecuador’s mining crisis. There you will find research, detailed reports and news updates. Contact information can be found for those wanting to be involved in the campaign, which is being run entirely by volunteers. To let the Ecuadorean Government, World Bank and mining companies know you want them to invest in a sustainable future for all, a petition can be found here.

 

Please join, follow and share this campaign on Social Media.

 

Biodata: John Seed is the founder and director of the Rainforest Information Centre in Australia. He has been campaigning to save the world’s rainforests since the 1970s.

 

FOR PRINT MEDIA: A LONGER VERSION OF THIS ARTICLE REPLETE WITH HYPERLINKS MAY BE FOUND AT www.rainforestinfo.org.au/forests/ecuador/article.htm

Demise Of The Petrodollar Has The Potential To Reshape The Geopolitical World

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By James ONeill

Source: New Eastern Outlook

In the early 1970s President Richard Nixon instigated two changes that had profound effects. The first of these was taking United States off the gold standard; i.e. henceforth US dollars would no longer be convertible to Gold. Ordinarily this might have been expected to have significant ramifications for the value of the US dollar.

Deleterious effects however, were avoided by another equally profound change. Nixon’s National Security Adviser Henry Kissinger negotiated an agreement with Saudi Arabia that henceforth all oil(initially from Saudi Arabia but rapidly extended to all OPEC) countries would be traded only in US dollars, the birth of the so called petrodollar.

It was a classic mafia style arrangement. In exchange for Saudi Arabia’s agreement to the sole use of the dollar for oil transactions, the US underwrote Saudi Arabia’s security thereby ensuring the continuity of one of the world’s most corrupt and repressive regimes.

Also unknown at the time, the US and Saudi Arabia entered an arrangement whereby Islamist terrorist groups (as long as they were Sunni) would be financed by Saudi Arabia and armed by the Americans and then used in pursuit of US geopolitical goals. Operation Cyclone, begun under the Carter administration in the 1970s was an early forerunner of this tactic, but it has been refined and utilized in different formats in a wide number of countries ever since.

The objective was always fundamentally the same: to undermine and if necessary replace governments that were insufficiently compliant with US geopolitical aims. As and when necessary, US troops and their “coalition” allies would be inserted into the target countries. The destruction of Afghanistan (2001 and continuing) Iraq (2003 and continuing) Libya (2011 and continuing) are only three of the better-known examples.

The huge financial cost of these military and geopolitical ventures did not impose a proper price upon the US because of the hegemonic role of the US dollar. The US, in effect, had their multiple wars of choice paid for by other countries as the dollar’s role in world trade created a constant demand for US Treasury bonds.

The role of the US dollar also permitted the US to impose sanctions on recalcitrant countries. The selective nature of the sanctions, always directed toward a US geopolitical or commercial advantage, were clearly an instrument of repressive power. Notwithstanding claims that they were to “punish” the alleged misconduct of the specified country, their actually use betrayed their geopolitical purpose.

Sanctions against Russia for its” invasion” of Ukraine “annexation” of Crimea, and against Iran for its “nuclear program” are two of the better known illustrations of sanctions being justified on spurious grounds..

The use and abuse of the dollar’s power is clearly unacceptable, but the capacity to invoke countermeasures was until quite recently severely limited. The single most important countervailing force is the rise of China as the economic powerhouse of the world, and importantly, the creation of alternative structures in trade, finance and security, that translate China’s economic power into a force for major change.

That change is assisted by the number of collateral developments. In 1990, the G7 nations (Canada, France, Germany, Italy, Japan, the US and UK) had a combined GDP approximately six times greater then the seven economically most important emerging nations (Brazil, China, India, Indonesia, Mexico, Russia and South Korea).

By 2013 the “emerging seven” had surpassed the G7’s GDP total and according to the IMF’s estimates for 2017, the GDP of the two groups will be $47 .5 trillion and $37.8 trillion for the emerging seven and the G7 respectively. Turkey, which is growing at 5% per annum, has replaced Mexico in the top emerging seven.

BRICS, which contains four of the emerging seven nations and the Shanghai Corporation Organisation (SCO), which includes China, India and Russia, are working together on the architecture of a monetary alternative to the dollar. The SCO alone contains 42% of the world’s population.

India’s role in BRICS and the SCO is one reason it is being assiduously cultivated by Australia, Japan and the United States in an attempt to set up a “quadrilateral four” to slow and undermine the role of China and Russia in creating an alternative to longstanding western domination and exploitation.

It was in this context that Russia’s President Putin at the recent BRICS meeting in Xiamen, China said that

“Russia shares the BRICS countries concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies.”

This speech developed a theme that Putin had developed in an article published prior to the BRICS meeting. Putin bluntly vowed to destroy the US led financial system, aiming to reform a system that gives excessive domination to a limited number of reserve (i.e. predominantly western) currencies.

China has developed a new Cross Border Interbank Payments System (CIPS) to replace the US dominated SWIFT system, itself used as a tool for financial bullying by the US. Russia has also taken steps to insulate itself from the ill effects of being excluded from SWIFT.

Other major changes are also occurring. Venezuela, with the world’s largest known oil reserves, has ceased accepting payment in US dollars. In the past US retaliation through regime change would have been immediate as happened to Libya’s Gaddafi (confirmed by Clinton’s leaked emails) and the Iraq’s Saddam Hussein who had announced that he would henceforth accept payment in euros and not dollars.

China and Qatar recently concluded a $50 billion deal denominated in Yuan. There were immediate threats and absurd demands from Saudi Arabia, undoubtedly acting as the voice of the US administration, but nothing more serious. The lack of military intervention or attempted regime change was probably attributable to Turkey’s military intervention, a series of agreements with Iran, and the probable implied threat of Chinese intervention should the Saudis further demonstrate their military incompetence (as in Yemen) by anything as rash as direct military moves against Qatar.

Saudi Arabia is rapidly reaching a crunch point in its relationship with China, a huge purchaser of Saudi Arabia’s oil. It is widely known that China wants future oil contracts denominated in Yuan. The attraction for Saudi Arabia is that the Chinese guarantee their Yuan with gold traded on the Hong Kong and Shanghai exchanges. Ironically, this puts China in the same position as the United States prior to Nixon’s withdrawal from the gold backed dollar.

The dilemma for the Saudis is that if they comply with the Chinese demands they risk losing the Americans underwriting their security. US instigated regime change in Saudi Arabia is a very real possibility and the recent maneuverings by Mohammad bin Salman to consolidate his power can be interpreted as a response to that possibility.

Typically, the western media focused on relative trivialities, such as women being able to drive motor vehicles from 2018 (in limited circumstances), rather than examining the underlying geopolitical power struggle.

The other major development worth mentioning in this context is the rapid increase in the number of countries doing deals with China using the Yuan or their own national currencies as the medium of exchange. China’s Belt and Road Initiative, currently involving 65 nations, will undoubtedly accelerate this trend. Russia and China are already each other’s critically important trading partners and all agreements between them are being denominated in either Yuan or Rubles.

It would be naïve to assume that this is all going to occur without a massive rearguard action by the Americans who know full well that their ability to defy economic logic is only possible because of the dollar’s unique role, allowing in turn military interventions to prop up their now rapidly declining power.

The United States’ aggressive and provocative actions in the South China Sea, North Korea, Ukraine, Syria and elsewhere our best interpreted as the flailing’s of a declining empire. The real question is will the United States accept the disappearance of the unique power that it has wielded since the Bretton Woods agreement of 1944 and adjust its policies accordingly, or destroy us all in their attempts to recapture a lost world.

When the Butterfly Flaps Its Wings

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credit: Twitter/@caroleenarn

By James Howard Kunstler

Source: Kunstler.com

It remains to be seen what the impact will be from Mother Nature putting the nation’s fourth largest city out-of-business. And for how long? It’s possible that Houston will never entirely recover from Hurricane Harvey. The event may exceed the physical damage that Hurricane Katrina did to New Orleans. It may bankrupt large insurance companies and dramatically raise the risk of doing business anywhere along the Gulf and Atlantic coasts of the USA — or at least erase the perceived guarantee that losses are recoverable. It may even turn out to be the black swan that reveals the hyper-fragility of a US-driven financial system.

Houston also happens to be the center of the US oil industry. Offices can be moved elsewhere, of course, but not so easily the nine major oil refineries that sprawl between Buffalo Bayou over to Beaumont, Port Arthur, and then Lake Charles, Louisiana. Harvey is inching back out to the Gulf where it will inhale more energy over the warm ocean waters and then return inland in the direction of those refineries.

The economic damage could be epic. Much of the supply for the Colonial Pipeline system emanates from the region around Houston, running through Atlanta and clear up to Philadelphia and New York. There could be lines at the gas stations along the eastern seaboard in early September.

The event is converging with the US government running out of money this fall without new authority to borrow more by congress voting to raise the US debt ceiling. Perhaps the emergency of Hurricane Harvey and its costly aftermath will bludgeon congress into quickly raising the debt ceiling. If that doesn’t happen, and the debt ceiling is not raised, the federal government might have to pretend that it can pay for emergency assistance to Texas and Louisiana. That pretense can only go so far before government contractors balk and maybe even walk.

Ordinarily, failure to raise the debt ceiling would lead to a government shut-down, including hurricane recovery operations, unless the president invoked some kind of emergency powers. That would be decisive action, but it could also be the beginning of something that looks like a full-out dictatorship. Powers assumed are often not surrendered when the original emergency is over. And what would the president use for money if a substantial enough number of congresspersons and senators are prompted by their distaste for Mr. Trump to drag out the process of financially re-liquefying the government? (And nevermind even passing a budget.)

Meanwhile, two other major sources of aggravation are waiting off-stage: one is North Korea. Why wouldn’t Kim Jong-un use the opportunity of political disarray in the US to create more headaches for a distracted US government? Never let a crisis go to waste. Another potential irritant is the return of students to American college campuses. Imagine how the campus Antifa forces would react to Mr. Trump assuming emergency powers. It’s easy to foresee an acceleration of violence between the extreme Left and the Extreme right during what is shaping up to look like a major crisis in governing. If the campus Left had any tactical brains, they’d stop marching around in black uniforms and instead organize a mass renunciation of college loan debt.

Behind all this political strife will be wobbling financial markets. The message from the debt ceiling stalemate to the bond market would be that the US can no longer be relied on to pay its debts. Interest rates on US Treasury paper would have to go up as the long-lost concept of risk returned to the bond scene. People and institutions will not be induced to hold bonds unless the yield is recalibrated to the actual risk. Of course, in the mysterious world of bonds (i.e. securitized debt), the price of bonds goes down as interest rates rise. Meaning a lot of current holders of bonds would be hammered if they tried to sell. Rates rising would also spell big trouble for corporations and governments who have to make regular interest payments to bond-holders. A rate rise to as little as 3 percent on US Treasury bonds could spin the country into comprehensive bankruptcy.

How might stock markets and currency markets react to the scenario above? To me it would look like a drop of at least 1000 points on the S & P. The US dollar might actually rise initially as a whole lot of debt is renounced — which makes money actually disappear — but then you have the Federal Reserve waiting on another flank to roll out their own emergency response: Quantitative Easing No. 4, flooding the system with new “money” that has all the appearance and none of the mojo of value, tanking the dollar anew. As a wise correspondent of mine wrote a while back: “financialization is nothing more than money with its value removed.” (Graham Reinders.)

A lot can happen when a faraway butterfly flaps its wings and sets a slight current of air in motion.

Washington’s Global Economic Wars

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By James Petras

Source: Axis of Logic

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

For Purely Technical Reasons

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By Dmitry Orlov

Source: Club Orlov

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

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

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

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

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

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

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

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

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

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

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

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

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