From Dollar Hegemony to Global Warming

Globalization, Glyphosate and Doctrines of Consent

By Colin Todhunter

Source: Dissident Voice

There has been an on-going tectonic shift in the West since the abandonment of the Bretton Woods agreement in 1971. This accelerated when the USSR ended and has resulted in the ‘neoliberal globalization’ we see today.

At the same time, there has been an unprecedented campaign to re-engineer social consensus in the West. Part of this strategy, involves getting populations in Western countries to fixate on ‘global warming’, ‘gender equity’ and ‘anti-racism’: by focusing on identity politics and climate change, the devastating effects and injustices brought about by globalized capitalism and associated militarism largely remain unchallenged by the masses and stay firmly in the background.

This is the argument presented by Denis Rancourt, researcher at Ontario Civil Liberties Association, in a new report. Rancourt is a former full professor of physics at the University of Ottawa in Canada and author of ‘Geo-economics and geo-politics drive successive eras of predatory globalization and socialengineering: Historical emergence of climate change, gender equity, andanti-racism as state doctrines’ (April 2019).

In the report, Rancourt references Michael Hudson’s 1972 book Super Imperialism: The Economic Strategy of American Empire to help explain the key role of maintaining dollar hegemony and the importance of the petrodollar to US global dominance. Aside from the significance of oil, Rancourt argues that the US has an existential interest to ensure that opioid drugs are traded in US dollars, another major global commodity. This explains the US occupation of Afghanistan. He also pinpoints the importance of US agribusiness and the arms industry in helping to secure US geo-strategic goals.

Since the fall of the USSR in 1991, Rancourt says that US war campaigns have, among other things, protected the US dollar from abandonment, destroyed nations seeking sovereignty from US dominance, secured the opium trade, increased control over oil and have frustrated Eurasian integration. In addition, we have seen certain countries face a bombardment of sanctions and hostility in an attempt to destroy energy-producing centres that the US does not control, not least Russia.

He also outlines the impacts within Western countries too, including: the systematic relative loss of middle-class economic status, the rise of urban homelessness, the decimation of the industrial working class, corporate megamergers, rising inequality, the dismantling of welfare, financial speculation, stagnant wages, debt, deregulation and privatisation. In addition, the increased leniency in food and drug regulation has led to the dramatic increase in the use of the herbicide glyphosate, which has been concurrent with upsurges of many diseases and chronic ailments.

In the face of this devastation, Western nations have had to secure ongoing consent among their own populations. To help explain how this has been achieved, Rancourt focuses on gender equity, anti-racism and global warming as state doctrines that have been used to divert attention from the machinations of US empire (and also to prevent class consciousness taking hold). I recently asked Denis Rancourt about this aspect of his report.

Colin Todhunter:  Can you say a bit about yourself and how you came to produce this report? What is it meant to achieve?

Denis Rancourt:  I’m a former physics professor, environmental scientist and a civil rights advocate. I currently work as a researcher for the Ontario Civil Liberties Association (ocla.ca). During a conversation about civil rights issues I had with the executive director of OCLA, we identified several important societal and economic phenomena that seemed to be related to the early 1990s. So, I eventually settled in to do some ‘heavy lifting’, research wise.

While there is no lack of hired intellectuals and experts to wrongly guide our perception, my research demonstrates a link between surges in large-scale suppression and exploitation of national populations with the acceleration of an aggressive, exploitative globalization.

CT: In your report, you’ve described the consequences of the abandonment of Bretton Woods and the dissolution of the USSR in terms of dollar hegemony, US militarism and the devastating impacts of ‘neoliberal globalisation’ both for nation states and for ordinary people.

DR: There is little doubt that Russian and Chinese analysts have a solid understanding of what I have outlined in my report. For instance, foreshadowing Trump’s trade war, the People’s Liberation Army Major-General Qiao Liang’s April 2015 speech to the Chinese Communist Party’s Central Committee and government office, included the following:

Since that day [dissolution of Bretton Woods], a true financial empire has emerged, the US dollar’s hegemony has been established, and we have entered a true paper currency era. There is no precious metal behind the US dollar. The government’s credit is the sole support for the US dollar. The US makes a profit from the whole world. This means that the Americans can obtain material wealth from the world by printing a piece of green paper. […] If we [now] acknowledge that there is a US dollar index cycle [punctuated by engineered crises, including war] and the Americans use this cycle to harvest from other countries, then we can conclude that it was time for the Americans to harvest China…

CT: You discuss the need for states to ensure consent: the need to pacify, hypnotize and align populations for continued globalization; more precisely, the need to divert attention from the structural violence of economic policies and the actual violence of militarism. Can you say something about how the issue of global warming relates to this?

DR:  Irrespective of whether the so-called ‘climate crisis’ is real, exaggerated or fabricated, it is clear, from the data in my report, that the ethos of global warming was engineered on a global scale and benefits the exploiters of the carbon-economy and, more indirectly, the state.

For example, one of the studies that I review shows that a many-fold increase in mainstream media reporting about global warming suddenly occurred in the mid-2000s, in all the leading news media, at the same time that the financiers and their acolytes such as Al Gore decided to make and manage a global carbon economy. This media campaign has been sustained ever since and the global warming ethos has been institutionalized.

Carbon sequestration schemes have devastated local communities on every occupied continent. If anything, carbon schemes − from wind farms to biofuel harvesting to industrial battery production to solar-cell array installations to mining uranium to mega hydro-dam construction and so on – have accelerated habitat destruction.

Meanwhile, economic and military warfare rages, glyphosate is dumped into the ecosphere at unprecedented rates (poured on GM herbicide-resistant cash crops), active genocides are in progress (Yemen), the US is unilaterally withdrawing from nuclear treaties and forcing an arms race with next generation death machines and US-held extortionary loans are serviced by land-use transformation on the scale of nations; while our educated children have nervous breakdowns trying to get governments to “act” on “climate”.

In the early-1990s, a world conference on climate environmentalism was an express response to the dissolution of the Soviet Union. This was part of a global propaganda project intended to mask the new wave of accelerated predatory globalism that was unleashed now that the USSR was definitively out of the way.

CT: What are your thoughts on Greta Thunberg and the movement surrounding her?

DR:  It is sad and pathetic. The movement is a testament to the success of the global propaganda project that I describe in my report. The movement is also an indicator of the degree to which totalitarianism has taken hold in Western societies; wherein individuals, associations and institutions lose their ability for independent thought to steer society away from the designs of an occupying elite. Individuals (and their parents) become morality police in the service of this ‘environmentalism’.

CT: You also talk about the emergence of gender-equity (third wave feminism) and anti-racism as state doctrines. Can you say something about this?

DR: In my report, I use historical institutional records and societal data to demonstrate that a triad of ‘state religions’ was globally engendered and emerged on cue following the dissolution of the Soviet Union. This triad consists of climate alarmism, exaggerated tunnel-vision focus on gender equity and a campaign of anti-racism focused on engineering thoughts, language and attitudes.

These state ideologies were conceived and propelled by UN efforts and the resulting signed protocols. Western academia enthusiastically took up and institutionalized the program. Mainstream media religiously promoted the newly minted ethos. Political parties largely applied increased quotas of gender and race elected representatives.

These processes and ideas served to sooth, massage and occupy the Western mind, especially among the upper-middle, professional and managerial classes and the elite classes of economically occupied territories but did nothing to alleviate the most violent and globally widespread forms of actual racism and misogyny as a result of predatory globalization and militarism.

Ironically, the global attacks on human dignity, human health and the environment were in proportion to the systematic and sometimes shrill calls for gender equity, anti-racism and climate ‘action’. The entire edifice of these ‘state religions’ leaves no room for required conflicts of class and expressly undermines any questioning of the mechanisms and consequences of globalization.

CT: Can you say something about the Gilets Jaunes (Yellow Vests), Brexit and the Trump electoral phenomenon?

DR: Combine aggressive globalization, constant financial predation, gutting of the Western working and middle classes and a glib discourse of climate change, anti-racism and gender equity and something has to give. French geographer Christophe Guilluy predicted the reactions in some detail, and it is not difficult to understand. It is no accident that the revolting working- and middle-classes are critical of the narratives of climate crisis, anti-racism and gender equity; and that their voices are cast by the mainstream media as racist, misogynist and ignorant of science.

It seems that any class which opposes its own destruction is accused of being populated by racist and ignorant folks that can’t see that salvation lies in a carbon-managed and globalized world. It becomes imperative, therefore, to shut down all the venues where such an ‘ignorant lot’ could communicate their views, attempt to organize and thereby threaten the prevailing social order.

Degrowth: closing the global wealth divide

Contradicting the dominant paradigm that economic growth equals development, degrowth theorists argue that serious cutbacks are crucial to protect life on our planet.

By Riccardo Mastini

Source: ROAR

Today, some 4.3 billion people — more than 60 percent of the world’s population — live in debilitating poverty, struggling to survive on less than the equivalent of $5 per day (which is the mean average of all the national poverty lines in the Global South). Half do not have access to enough food. And these numbers have been growing steadily over the past few decades.

With these data, Jason Hickel, an anthropology professor and global development expert, starts his controversial book, The Divide: A Brief Guide to Global Inequality and Its Solutions, in which he meticulously and convincingly debunks the narrative told by the UN and the likes of Bill Gates and Steven Pinker. In fact, while the good-news story leads us to believe that poverty has been decreasing around the world, in reality the only places this holds true are in China and East Asia. And these are some of the only places in the world where free-market capitalism was not forcibly imposed by the World Bank and the IMF, allowing these governments to pursue state-led development policies and gradually liberalize their economies on their own terms.

Development agencies, NGOs and the world’s most powerful governments explain that the plight of poor countries is a technical problem — one that can be solved by adopting the right institutions and the right economic policies, by working hard and accepting a bit of help. As Hickel writes: “It is a familiar story, and a comforting one. It is one that we have all, at one time or another, believed and supported. It maintains an industry worth billions of dollars and an army of NGOs, charities and foundations seeking to end poverty through aid and charity.” But it’s against this narrative that Hickel takes aim.

ECONOMIC UNEQUAL EXCHANGE OVER THE CENTURIES

The main argument presented in the book is that the discourse of aid distracts us from seeing the broader picture. It hides the patterns of extraction that are actively causing the impoverishment of the Global South today and actively impeding meaningful development. “The charity paradigm obscures the real issues at stake: it makes it seem as though the West is ‘developing’ the Global South, when in reality the opposite is true. Rich countries aren’t developing poor countries; poor countries are effectively developing rich countries — and they have been since the late 15th century,” argues Hickel.

In the book it is laid bare for all to see that underdevelopment in the Global South is not a natural condition, but a consequence of the way Western powers have organized the world economic system.

It’s not that the $128 billion in aid disbursements that the West gives to the Global South every year doesn’t exist — it does. But if we broaden our view and look at it in context, we see that it is vastly outstripped by the financial resources that flow in the opposite direction.

If all of the financial resources that get transferred between rich and poor countries each year are tallied up, we find that in 2012, the last year of recorded data, developing countries received a little over $2 trillion, including all aid, investment and income from abroad. But more than twice that amount, some $5 trillion, flowed out of them in the same year. In other words, developing countries “sent” $3 trillion more to the rest of the world than they received.

What do these large outflows from the Global South consist of? “Well, some of it is payments on debt. Today, poor countries pay over $200 billion each year in interest alone to foreign creditors, much of it on old loans that have already been paid off many times over, and some of it on loans accumulated by greedy dictators,” states Hickel. Another major contributor is the income that foreigners make on their investments in developing countries and then repatriate. Think of all the profits that Shell extracts from Nigeria’s oil reserves, for example, or that Anglo American pulls out of South Africa’s gold mines.

But by far the biggest chunk of outflows has to do with capital flight. A big proportion of this takes place through “leakages” in the balance of payments between countries. Another takes place through an illegal practice known as “trade misinvoicing.” Basically, corporations report false prices on their trade invoices in order to spirit money out of developing countries directly into tax havens and secrecy jurisdictions. A similarly large amount flows out annually through “abusive transfer pricing”, a mechanism that multinational companies use to steal money from developing countries by shifting profits illegally between their own subsidiaries in different countries. But perhaps the most significant loss has to do with exploitation through trade.

Hickel explains that “from the onset of colonialism through to globalization, the main objective of the North has been to force down the cost of labor and goods bought from the South. In the past, colonial powers were able to dictate terms directly to their colonies. Today, while trade is technically “free,” rich countries are able to get their way because they have much greater bargaining power.” On top of this, trade agreements often prevent poor countries from protecting their workers in ways that rich countries do. And because multinational corporations now have the ability to scour the planet in search of the cheapest labor and goods, poor countries are forced to compete to drive costs down. As a result of all this, there is a yawning gap between the “real value” of the labor and goods that poor countries sell and the prices they are actually paid for them. This is what economists call “unequal exchange.”

Since the 1980s, countries of the West have been using their power as creditors to dictate economic and trade policies to indebted countries in the South, effectively governing them by remote control, without the need for bloody interventions. “Leveraging debt,” argues Hickel, “they imposed “structural adjustment programs” that reversed all the economic reforms that Global South countries had painstakingly enacted in the previous two decades. In the process, the West went so far as to ban the very protectionist and Keynesian policies that it had used for its own development, effectively kicking away the ladder to success.”

DEGROWTH FOR SUSTAINABLE AND FAIR LIVELIHOODS

Hickel then ponders over how — if these unfair trade and business practices were amended — poor countries could actually go about developing their economies following the same path as the one embraced by the Global North over the past two centuries. He references a study by the economist David Woodward in which the latter shows that given our existing economic model, poverty eradication can’t happen. Not that it probably won’t happen, but that it physically can’t. It is a structural impossibility.

He explains that:

Right now, the main strategy for eliminating poverty is to increase global GDP growth. The idea is that the yields of growth will gradually trickle down to improve the lives of the world’s poorest people. But all the data we have shows quite clearly that GDP growth doesn’t really benefit the poor. While global GDP per capita has grown by 65 percent since 1990, the number of people living on less than $5 a day has increased by more than 370 million. Why does growth not help reduce poverty? Because the yields of growth are very unevenly distributed. The poorest 60 percent of humanity receive only 5 percent of all new income generated by global growth. The other 95 percent of the new income goes to the richest 40 percent of people. And that’s under best-case-scenario conditions.

Given this distribution ratio, Woodward calculates that it will take more than 100 years to eradicate absolute poverty at $1.25 a day. At the more accurate level of $5 a day, eradicating poverty will take 207 years. To eradicate poverty at $5 a day, global GDP would have to increase to 175 times its present size. In other words, we need to extract, produce and consume 175 times more commodities than we presently do. It is worth pausing for a second to think about what this means. Even if such outlandish growth were possible, the consequences would be disastrous. We would quickly chew through our planet’s ecosystems, destroying the forests, the soils and, most importantly, the climate.

According to data compiled by researchers at the Global Footprint Network in Oakland, our planet only has enough ecological capacity for each of us to consume 1.8 “global hectares” annually — a standardized unit that accounts for resource use, waste, pollution and emissions. Anything over this means a degree of resource consumption that the Earth cannot replenish, or waste that it cannot absorb; in other words, it locks us into a pathway of progressive degradation. The figure of 1.8 global hectares is roughly what the average person in Ghana or Guatemala consumes.

By contrast, Europeans consume 4.7 global hectares per person, while in the US and Canada the average person consumes 8 — many times their fair share. To get a sense of how extreme this overconsumption is: if we were all to live like the average citizen of the average high-income country, we would require the ecological capacity equivalent to 3.4 Earths. Hickel elaborates:

Scientists tell us that even at existing levels of aggregate global consumption we are already overshooting our planet’s ecological capacity by about 60 percent each year. And all of this is just at our existing levels of aggregate economic activity — with the existing levels of consumption in rich and poor countries. If poor countries increase their consumption, which they will have to do to some extent in order to eradicate poverty, they will only tip us further towards disaster. Unless, that is, rich countries begin to consume less.

If we want to have a chance of keeping within the 2°C threshold — which the Paris Agreement on climate change sets as an absolute cap — we can emit no more than another 805 gigatons of CO2 at the global level. Now, let’s accept that poor countries will need to use a portion of this carbon budget in order to grow their incomes enough to eradicate poverty; after all, we know that for poor countries human development requires an increase in emissions, at least up to a relatively lowish point. This principle is already widely accepted in international agreements, which recognize that all countries have a “common but differentiated responsibility” to reduce emissions. Because poor countries did not contribute much to historical emissions, they have a right to use more of the carbon budget than rich countries do — at least enough to fulfill basic development goals (as I also argue in this article). This means that rich countries have to figure out how to make do with the remaining portion of the budget.

Professor Kevin Anderson, one of Britain’s leading climate scientists, has been devising potential scenarios for how to make this work. If we want to have a 50 percent chance of staying under 2°C, there’s basically only one feasible way to do it — assuming, of course, that negative emissions technologies is not a real option. In this scenario, poor countries can continue to grow their economies at the present rate until 2025, using up a disproportionate share of the global carbon budget. That’s not a very long time, so this strategy will only work to eradicate poverty if the gains from growth are distributed with a heavy bias towards the poor.

As Hickel writes: “The only way for rich countries to keep within what’s left of the carbon budget is to cut emissions aggressively, by about 10 percent per year. Efficiency improvements and clean energy technologies will contribute to reducing emissions by at most 4 percent per year, which gets them part of the way there. But to bridge the rest of the gap, rich countries are going to have to downscale production and consumption by around 6 percent each year. And poor countries are going to have to follow suit after 2025, downscaling economic activity by about 3 percent per year.” This strategy of downscaling the production and consumption of a country is called “degrowth.”

Hickel describes this visionary idea as follows: “All it means is easing the intensity of our economy, cutting the excesses of the very richest, sharing what we have instead of plundering the Earth for more, and liberating ourselves from the frenetic consumerism that we all know does nothing to improve our wellbeing or happiness.” And since the book first came out in 2017, Hickel has been developing an increasingly clearer position on how we can go about making such changes happen.

His thinking on degrowth was recently encapsulated in a captivating blog exchange he had with Branko Milanović, another global development expert. But Milanović still maintains that economic growth should be at the core of poverty relief. Paraphrasing a passage from Kate Raworth’s Doughnut Economics, we could summarize Milanović’s position as “economic growth is still necessary, and so it must be possible,” while Hickel argues that “economic growth is no longer possible, and so it cannot be necessary.” I side with the latter, simply because the laws of physics trump the laws of economics.

In light of this, perhaps we should regard countries like Costa Rica not as underdeveloped, but rather as appropriately developed. We should look at societies where people live long and happy lives at low levels of income and consumption not as backwaters that need to be developed according to Western models, but as exemplars of efficient living — and begin to call on rich countries to cut their excess consumption.

What’s Wrong with the Economy: 9 Toxic Dynamics

By Charles Hugh Smith

Source: Of Two Minds

These nine dynamics are mutually reinforcing.

Beneath the surface signals of an eternally rising stock market and expanding GDP, we all sense something is deeply, systemically wrong with the U.S. economy. These nine structural dynamics generate secondary dynamics, all of which are toxic to social mobility, sustainable prosperity, accountability and democracy:

1. The financialization of the economy, which transformed services, credit, risk and labor into commodities that could be traded globally. Financialization generates enormously asymmetric returns: those with access to low-cost credit, global markets and expertise in finance collect the lion’s share of gains in income and wealth.

2. The technological transformation of the economy, which has placed a substantial scarcity premium on specific tech/managerial/communication skills and devalued ordinary labor and capital. As a result, the majority of gains in wealth and income flow to those with the scarce skills and forms of capital, leaving little for ordinary labor and capital.

3. The end of cheap fossil fuels. The fracking boom/bubble has obscured the long-term secular trend: the depletion of cheap-to-access and process oil. As many analysts have observed (Nate Hagens, Gail Tverberg, Richard Heinberg, Chris Martenson et al.), the global economy only grows if energy and credit are both cheap.

4. Globalization, which transformed the developing world into the environmental dumping ground of the wealthy nations and enabled the owners of capital to offshore waste and labor.

5. The destructive consequences of “growth at any cost” are piling up. “Growth” is the one constant of all existing political-economic systems, and none of the current Modes of Production (i.e. the structures that organize production, consumption, the economy and society) recognize that “growth” is not sustainable.

The first two dynamics drive three other dynamics that have hollowed out the productive economy:

6. The dominance of debt-funded speculation as the means of “getting ahead” as opposed to producing products and services of intrinsic value that serve the core needs of communities.

7. The economy’s gains in income and wealth are concentrated in the very top of the wealth-power pyramid: the top 5%–entrepreneurs, professionals and technocrats, etc., and within this class, most of the gains go to the top 1/10th of 1% –the existing owners of wealth, and financiers/speculators with access to cheap credit.

The net result is the bottom 95% have few opportunities to “get ahead” outside of gambling in the asset bubbles du jour: the stock and housing market. While the average middle class household may be able to borrow enough to speculate in the housing bubble, two factors limit the odds of success for ordinary investors/gamblers:

A. The gains in housing are concentrated in specific markets; outside these hot markets, gains are modest.

B. Asset bubbles eventually pop, leaving those still owning the assets with losses. The risks are thus intrinsic and high. The average investor/gambler lacks the experience needed to recognize the bubble has stopped expanding and exit the market before ll the other speculators rush for the narrowing exit.

8. The devaluation of ordinary labor and capital means the bottom 60% of the economy that lacks the requisite skills with a scarcity premium in the Emerging Economy have lost easy access to the ladder of social mobility.

9. The concentration of wealth and power in the hands of the self-serving few corrupts the economy and democracy. The U.S. economy is dominated by insider and elite rackets, skims, scams and cartels/quasi-monopolies, all of which corrupt the economy by creating perverse incentives for exploitation and gaming the system to benefit the few at the expense of the many.

This corruption in service of maximizing private/personal gains at the expense of the system itself also corrupts the mechanisms of governance, which are now little more than cloaking devices that protect insiders and elites from scrutiny and consequences.

The 20% above the bottom 60% may appear to have some access to social/economic mobility, but this is largely an artifact of the bubble economy since 2009. Once the bubble deflates, the illusion of social mobility for the “middle class” between the bottom 60% and the upper 20% vanishes.

The “upper middle class” between the bottom 80% and the top 5% is being squeezed by the over-production of elites, i.e. the over-abundance of those with college degrees and the relative scarcity of secure jobs within the top 5%. As a result, credential inflation is rampant, with Masters Degrees replacing Bachelors Degrees as the default for a white-collar job, and PhDs replacing Masters diplomas as the new default for positions that lack security and upward mobility.

In other words, the number of people who qualify for and desire a slot in the elite class (top 5%) far exceeds the number of slots available. As Peter Turchin has explained, this competition generates social disorder at the top of economic heap as the top 20% fight over the few positions open in the top 5%. The disgruntled, frustrated losers far outnumber the relatively few winners.

These nine dynamics are mutually reinforcing, meaning that each dynamic strengthens one or more of the others, reinforcing each other so the sum of the nine is far more powerful than a mere addition might suggest.

The New Aristocracy (the top 9.9%) (The Atlantic)

 

Globalisation: Hyperstition, Surveillance, and the Empire of Reason

By S.C. Hickman

Source: Techno Occulture

Edmund Berger in his essay Underground Streams speaking of various tactics used by the Situationists, Autonomia, and the Carnivalesque:

“Like the Situationists the Autonomia would engage with the tradition of the Carnivalesque alongside a Marxist political analysis. Bakhtin had described the carnival as “political drama without footlights,” where the dividing line between “symbol and reality” was extremely vague, and the Autonomia had embodied this approach through their media-oriented tactics of detournement. But under a regime of emergency laws a great portion of the Autonomia was sent to prison or into exile, leaving its legacy through an extensive network of radical punk and anarchist squats and social centers.”

One of the things we notice is that the Autonomia movement actually struck a nerve at the heart of Power and forced their hand, which obligingly reacted and used their power over and dominion of the Security System to screen out, lock up, and exclude this threat. That’s the actual problem that will have to be faced by any emancipatory movement in the present and future: How to create a movement that can be subversive of the system, and yet chameleon like not rouse the reactionary forces to the point of invoking annihilation or exclusionary measures?

A movement toward bottom-up world building, hyperstition, and exit from this Statist system will have to do it on the sly utilizing a mirror world strategy that can counter the State and Public Security and Surveillance strategies.  Such Counter-Worlds of Exit and Hyperstitional instigation will need to work the shadow climes of the energetic unconscious, triggering a global movement from the shadows rather than in direct opposition.

In many ways as I think we need a politics of distortion, allure, and sincerity, one that invents a hyperstitional hyperobject among the various multidimensional levels of our socio-cultural systems, calling forth the energetic forces at the heart of human desire and intellect, bypassing the State and Corporate filters and Security Systems of power and control. Such a path will entail knowing more about the deep State’s secret Security apparatus and Surveillance methodologies, technologies, and tactics than most thinkers are willing to acknowledge or even apprehend. Like the Hacker movements of the 90’s up to Anonymous one will need to build shadow worlds that mimic the stealth weapons of the State and Corporate Global apparatus and assemblages; but with one caveat – these weapons are non-violent “weapons of the mind”, and go unseen and unrecognized by the State Security Systems at Local and Global levels.

A global system of mass, warrantless, government surveillance now imperils privacy and other civil liberties essential to sustaining the free world. This project to unilaterally, totally control information flow is a product of complex, ongoing interplay between technological, political, legal, corporate, economic, and social factors, including research and development of advanced, digital technologies; an unremitting “war on terror”; relaxed surveillance laws; government alliances with information technology companies; mass media manipulation; and corporate globalism. One might say it as the Googling of the World.

The United Stats internally hosts 17 intelligence agencies under the umbrella known as the Security Industrial Complex. They are also known for redundancy, complexities, mismanagement and waste. This “secret state” occupies 10,000 facilities across the U.S. Over the past five years the total funding budget exceeded half a trillion dollars. The notion of globalization which has its roots in the so called universalist discourses of the Enlightenment had as its goal one thing: to impose a transparent and manageable design over unruly and uncontrollable chaos: to bring the world of humans, hitherto vexingly opaque, bafflingly unpredictable and infuriatingly disobedient and oblivious to human wishes and objectives, into order: a complete, incontestable and unchallenged order. Order under the indomitable rule of Reason.1

This Empire of Reason spreads its tentacles across the known world through networks and statecraft, markets and tradecraft, war and secrecy, drugs and pharmakon.  The rise of the shadow state during Truman’s era began a process that had already been a part of the Corporate worldview for decades. The monopoly and regulation of a mass consumption society was and always will be the goal of capitalist market economies. In our time the slow and methodical spread of the American surveillance state and apparatus has shaped the globalist agenda. Because of it the reactionary forces of other state based control systems such as Russia and China are exerting their own power and surveillance systems as counters to Euro-American hegemony.

Surveillance is a growing feature of daily news, reflecting its rapid rise to prominence in many life spheres. But in fact surveillance has been expanding quietly for many decades and is a basic feature of the modern world. As that world has transformed itself through successive generations, so surveillance takes on an ever changing character. Today, modern societies seem so fluid that it makes sense to think of them being in what Bauman terms a ‘liquid’ phase. Always on the move, but often lacking certainty and lasting bonds, today’s citizens, workers, consumers and travelers also find that their movements are monitored, tracked and traced. Surveillance slips into a liquid state.

As Bauman relates it liquid surveillance helps us grasp what is happening in the world of monitoring, tracking, tracing, sorting, checking and systematic watching that we call surveillance. Such a state of affairs engages with both historical debates over the panopticon design for surveillance as well as contemporary developments in a globalized gaze that seems to leave nowhere to hide, and simultaneously is welcomed as such. But it also stretches outwards to touch large questions sometimes unreached by debates over surveillance. It is a conversation in which each participant contributes more or less equally to the whole. (Bauman)

Our network society has installed its own “superpanopticon” (Mark Poster). Such a system is ubiquitous and invisible to the mass of users. As Poster states it “The unwanted surveillance of one’s personal choice becomes a discursive reality through the willing participation of the surveilled individual. In this instance the play of power and discourse is uniquely configured. The one being surveilled provides the information necessary.” For Poster, this supply of self-surveillance is provided through consumer transactions stored and immediately retrievable via databases in their constitution of the subject as a “sum of the information in the fields of the record that applies to that name.” The database compiles the subject as a composite of his or her online choices and activities as tracked by IFS. This compilation is fixed on media objects (images, text, MP3s, Web pages, IPs, URLs) across the deluge of code that can be intercepted through keyword pattern recognition and private lists of “threatening” URLs.2

Our so called neoliberal society has erased the Public Sphere for the atomized world of total competition in a self-regulated market economy devoid of politics except as stage-craft. As authors in the Italian autonomist movements have argued for the past fifty and more years, this “total subsumption” of capital upon the life-sphere has been accomplished through “material” and “immaterial” means.  According to these authors, capital in late capitalism and neoliberalism has attempted to progressively colonize the entire life-sphere. Resistance, they argue, comes through the “reserves” to capital that remain as the social and intellectual foundation from which capital draws, including through “immaterial labor” using digital means. Gradually during modernity, such theorists have argued, life itself has been taken as a target for capitalist subsumption, through the cooptation of communication, sexual and familial relationships (Fortunati 1995), education, and every other sphere of human activity, with economic exchange and survival as the ultimate justification for all relationships.3

Capital’s “apparatus of capture” has become increasingly efficient and broad in its appropriation of selves as subjects of its political economy through the combination of appropriating governmental functions such as: buying off political actors and agencies, cutting public funding to modernist institutions and infrastructures, redefining the agenda of education and other cultural institutions toward capitalist values, owning and narrowing the focus of the media, forcing family structures and individuals to adapt to scarcity economies, and using government police and surveillance forces and economic pressures to crush resistance. In short, it is said that neoliberalism has advanced by the totalitarian institutionalization of national and international capitalism, one nation after another, using domestic means to force compliance in domestic markets and using international pressures (economic, military, cultural) to do the same to other countries, cultures, and peoples. (Day, pp. 126-127)

The increased accuracy (or believed accuracy) of increased surveillance and feedback targeting through the collection of social big data and its analyses and social and political uses (ranging from drone predators to state surveillance in both democratic and communist/ authoritarian governments to consumer targeting— for example, the targeting done by Target Corporation, as described in a 2012 New York Times article [Duhigg 2012])— belong to a conjoined mechanism of cybernetic and neoliberal governmentality, which crosses governmental and corporate databases and organizations. Social big data seeks to demarcate trends, which then directly or indirectly act as norms, which further consolidate individual and group action within market-determined norms (Rouvroy 2013). People are forced into competition, into a “freedom” that is monitored and checked within systems of feedback control. As Norbert Weiner suggested in the Cold War period (Wiener 1954, 1961), communicative control can be used toward a discourse of “rationality”; a rationality that is seen as proper to a given political economy. The documentary indexing of the subject provides the codes for the subject’s social positioning and expressions by others and by itself. Thanks to networked, mobile devices, the subject can attempt to continuously propose him- or herself to the world as the subject of documentary representation. (Day, pp. 132-133)

Those of us in the West who use mobile devices are becoming hooked into an elaborate datasociety in which every aspect of our lives is conditioned to enforce a self-regulatory system of choices and taboos. The surveillance is done at the level of individuals, who are monitored and whose actions are predicted throughout key moments of their consumption or production, marking changes in trends and phase states, and recalculating the trajectory of entities according to these new parameters and relationships. Our algorithmic society is splicing us all into a grid of total control systems from which it will become increasingly difficult to extricate ourselves.

As Douglas Rushkoff said recently digital technology is programmed. This makes it biased toward those with the capacity to write the code. In a digital age, we must learn how to make the software, or risk becoming the software. It is not too difficult or too late to learn the code behind the things we use—or at least to understand that there is code behind their interfaces. Otherwise, we are at the mercy of those who do the programming, the people paying them, or even the technology itself.4 More and more our mass society is being programmed through an immaterial grid of datafied compliance and surveillance that captures our desires and regulates our choices. In some ways we’ve become the mindless generation, unable to stand back from the immersive worlds of our technosphere in which we live and breath. We’ve become enamored with our Mediatainment Industrial Complex that encompasses us to the point that those being born now will not know there ever was a word without gadgets. In fact we’ve all become gadgets in a market world of science fiction, our desires captured by the very gadgets we once thought would free us from the drudgery of time. Instead we’ve been locked within a world without time, a timeless realm in which the very truth of history has been sucked out of it and instead we live in a mythic time of no time, prisoners of a cartoon world of endless entertainment and false desires. In such a world the virtual has become actual, we wander through life caught in the mesh of a fake world of commodity cartoons, citizens of a dreamland turned nightmare. Shall we ever wake up?

Modern radical thought has always seen subjectivation as an energetic process: mobilization, social desire and political activism, expression, participation have been the modes of conscious collective subjectivation in the age of the revolutions. But in our age, energy is running out and desire, which has given modern social dynamics their soul, is absorbed in the black hole of virtualization and financial games, as Jean Baudrillard argues in his 1976 book, Symbolic Exchange and Death. In this book, Baudrillard analyzes the hyperrealistic stage of capitalism, and the instauration of the logic of simulation.

The end of the spectacle brings with it the collapse of reality into hyperrealism, the meticulous reduplication of the real, preferably through another reproductive medium such as advertising or photography. Through reproduction from one medium into another the real becomes volatile, it becomes the allegory of death, but it also draws strength from its own destruction, becoming the real for its own sake, a fetishism of the lost object which is no longer the object of representation, but the ecstasy of denegation and its own ritual extermination: the hyperreal. […]

The reality principle corresponds to a certain stage of the law of value. Today the whole system is swamped by indeterminacy, and every reality is absorbed by the hyperreality of the code and simulation. The principle of simulation governs us now, rather that the outdated reality principle. We feed on those forms whose finalities have disappeared. No more ideology, only simulacra. We must therefore reconstruct the entire genealogy of the law of value and its simulacra in order to grasp the hegemony and the enchantment of the current system. A structural revolution of value. This genealogy must cover political economy, where it will appear as a second-order simulacrum, just like all those that stake everything on the real: the real of production, the real of signification, whether conscious or unconscious.

Capital no longer belongs to the order of political economy: it operates with political economy as its simulated model. The entire apparatus of the commodity law of value is absorbed and recycled in the larger apparatus of the structural law of value, this becoming part of the third order of simulacra. Political economy is thus assured a second life, an eternity, within the confines of an apparatus in which it has lost all its strict determinacy, but maintains an effective presence as a system of reference for simulation. (Baudrillard 1993a: 71-72, 2).5

We’ve all become simulations now. It’s not our bodies that matter in this digital universe of data, but rather the dividual traces we leave across the virtualized world that can be manipulated to produce profit. In the sphere of semiocapitalism, financial signs are not only signifiers pointing to particular referents. The distinction between sign and referent is over. The sign is the thing, the product, the process. The “real” economy and financial expectations are no longer distinct spheres. In the past, when riches were created in the sphere of industrial production, when finance was only a tool for the mobilization of capital investment in the field of material production, recovery could not be limited to the financial sphere. It also took employment and demand. Industrial capitalism could not grow if society did not grow. Nowadays, we must accept the idea that financial capitalism can recover and thrive without social recovery. Social life has become residual, redundant, irrelevant. (Bifo)

Those of us of an older generation still remember what existed the other side of the virtual screen, but the mass of young being born now will not have that luxury and their minds will be completely immersed in this new virtual actuality with no sense of the Outside.

While those on the Left still ponder outmoded political worlds the world of capital has abandoned both the political and the social. It’s time to wake up … I wanted to say, “before it’s too late”. My problem, my despair is that it is already too late. And, yet, I continue throwing out my little posts in hopes that someone is listening, that someone will awaken from their dogmatic slumber and act… is that you?


  1. Bauman, Zygmunt; Lyon, David. Liquid Surveillance: A Conversation (PCVS-Polity Conversations Series) (pp. 79-80). Wiley. Kindle Edition.
  2. Raiford Guins. Edited Clean Version: Technology and the Culture of Control (Kindle Locations 1304-1308). Kindle Edition.
  3. Day, Ronald E.. Indexing It All: The Subject in the Age of Documentation, Information, and Data (History and Foundations of Information Science) (p. 126). The MIT Press. Kindle Edition.
  4. Douglas Rushkoff. Program or Be Programmed (Kindle Locations 1363-1367). Kindle Edition.
  5. Berardi, Franco Bifo. After the Future (Kindle Locations 2276-2294). AK Press. Kindle Edition.

Are We Humans Terminally Insane or Just Waking Up?

Brain waves

By Paul Levy

Source: Reality Sandwich

The following article was originally published on Awaken in the Dream

 

“The world today hangs by a thin thread, and that thread is the psyche of man.”
– C. G. Jung

How does anyone possibly express in words the state of collective madness that humanity has fallen into at this time in our history? As if in a hypnotic trance, our species is enacting a mass ritual suicide on a global scale, rushing as fast as we can towards our own self-destruction. We are destroying the biospheric life-support systems of the planet in so many different ways that it is as if we are determined to make this suicide attempt work—using a variety of methods as a perverse insurance policy, in case a couple of them don’t do the job. What modern-day humanity is confronted with, to quote the author and Trappist monk Thomas Merton, is “a crisis of sanity first of all.”

In trying to find a way to write about this state of affairs, I find myself going “off-planet,” imagining what it would look like if some enlightened aliens, in their travels throughout the universe, came upon our planet. Observing from a distance, they would naturally see all the various living beings who call planet earth home as related members of one larger organism—a single eco-system—who literally depend upon each other for survival. From this vantage point, I imagine, they would be utterly baffled at why human beings—the seemingly most intelligent species ever to appear on planet earth—are acting out their destructive impulses practically without restraint in every corner of the globe. Contemplating the state of humanity, I imagine these awakened beings wondering, “What in the world has gotten into them?”

I imagine these illumined aliens, in agreement with Merton, would quickly conclude that human beings had become afflicted with some sort of psychological illness, a disease of the mind and soul that has caused us to turn on ourselves in self-and-other destruction. Apparently in a “fallen state,” we have lost our way, become disoriented, and, in our confusion, become quite deranged. It is as if our collective madness is so overwhelming—and by now so familiar and so normalized—that most of us, its sufferers, have no idea how to even think about it, let alone how to deal with it. Not knowing what to do, many of us inwardly dissociate—which only exacerbates the collective madness—and in our fragmented and disempowered state go about our lives in a numbed-out, zombie-like trance, making the best of what seems to be a bad situation.

The question naturally arises: how would these enlightened beings conspire with us to help wake us up? We can only imagine. For our part, it seems essential that we ask questions such as: what is the nature of this madness, and how can it be consciously engaged so that humanity can get back on the right track?

Seen as an organism, there is a systemic psycho-spiritual disease that has infected the whole body politic of humanity. At present we are having an acute—and potentially deadly—inflammation of this illness. As with any disease, in order to cure the pathology that ails us we must come up with the right diagnosis. Under the present circumstances, it is a healthy response for us to have an appropriate level of alarm. If we aren’t “alarmed” at what is happening in our world, we are still sleeping.

Economy

It’s difficult to appreciate how our behavior might appear strange—let alone completely insane—to an impartial observer. But engaging in a “benign onlooker” thought experiment—in this case, through the imagined insights of enlightened aliens—affords us some much-needed perspective. Even from this vantage point, though, the collective madness that humanity is acting out is hard to fathom. It is truly as if the inmates are running the asylum.

The first thing these aliens might perceive is a single living organism in crisis. What makes life itself possible is that every cell and organ of a living organism plays a uniquely vital role to the life and health of the greater organism; each part works together as part of an integrated and interdependent whole system. Our planet and its biosphere is a seamlessly interconnected whole system that operates as a macro-organism, and yet its supposedly most intelligent species has set up a global system for managing its rich diversity of natural resources that would kill a living organism in no time if such a system were implemented within the individual bodies of any of its members. If the human body was organ-ized and operated in a similar way to the global economy—where certain parts of the system demand disproportionate and ever-increasing shares of the existing resources—the body would die in no time.

At the heart of this reality is the fact that the way the global economic system has been crafted primarily serves the interests of the very few. Machine-like, “the system” relentlessly, and increasingly, sucks, drains and redistributes wealth from the majority of the populace—who more and more become impoverished and practically enslaved—into the hands of the already unthinkably wealthy. The powers-that-be then use coercive power to not only deny people the means to make even a subsistence living, but even denies them the basic human right to life on massive scales. This system doesn’t just passively allow people to fall below the poverty line, it actively pushes them under, as if poor people are being intentionally “left behind.” The most powerful and successful financial institutions have taken on the form of parasitic enterprises that have attached themselves to governments and people around the world, upon which they shamelessly and ravenously engorge themselves. These illumined aliens, with their clairvoyant vision, would surely find it revealing that the ones who own the wealth are—like vampires—energetically “feeding” off of the ones who barely have enough to eat.

The evidence is overwhelming. The current global economic system has brought us to a point where an incredibly small minority of human beings own a grossly disproportionate percentage of the planet’s resources. According to recent figures, the 62 richest people on the planet have more wealth than the poorest half of the global population combined, and over time this imbalance is increasingly getting worse. This is globalization at work. Much of this rising inequality is a direct result of the fact that globalization is the process by which multinational corporations are taking over sovereign governments—of the 100 largest economies in the world, over half are corporations.

These challenging economic times we live in are simultaneously the times of the greatest profits in all of history for certain select corporate conglomerates. Those at the top of the economic pyramid then use this ever-increasing gap between the rich and the poor to further game the system—itself riddled with corruption—so as to protect their advantage even more. The United States government in particular, instead of being a “government of the people, by the people, for the people,” has instead become a plutocracy—a government “of the rich, by the rich, for the rich.” It should get our attention that such economic stratification into the have and have-nots historically plays a crucial role in the collapse of civilizations.

These aliens would recognize that earth’s current way of “doing business” is unsustainable. Instead of creating value and wealth for the good of all, the way business is done on planet earth is actually destroying the genuine wealth and health of the whole system, with people, communities and the environment considered to be nothing more than collateral damage—all for the benefit of a small minority. If humanity is viewed as a family, there is abuse of power being perpetrated within the family system for the simple reason that those in the positions of power can act with total impunity and, in a case of “moral insanity,” can—and do—literally get away with murder.

These benign aliens would find it revealing that such a large percentage of earth’s resources—including humanity’s intrinsic ingenuity—instead of being used to care for each other and enrich life, are being used to create more potent and deadly weapons of mass destruction. In other words, humanity’s divinely inspired genius is being channeled into ever-more efficient ways of murdering each other! We have become conditioned to accept this astonishing cruelty and destruction as normal. We spend trillions of dollars to sustain a state of endless war against God knows who, while at the same time innumerable of our fellow brothers and sisters are impoverished and dying of starvation every day. These spiritually awake beings would realize that the destruction that humanity is playing out in the world is an unmediated reflection of an imbalance deep within the collective human psyche.

From the meta-perspective of the enlightened aliens, the behind-the-scene financiers who on the surface are benefitting the most from this diabolical set-up are themselves merely puppets in the hands of some darker forces that are informing the whole enterprise. To use writer Matt Taibi’s infamous phrase, a “vampire squid” is running rampant and feasting on the living body of humanity. To quote eminent theologian David Ray Griffin, “It does seem that we are possessed by some demonic power that is leading us, trancelike, into self-destruction.” Similarly, the Bible points out that our fight is not against “flesh and blood” (i.e., human forces), bot rather, against “powers and principalities” (spiritual forces). These forces are not only acting themselves out in our world, but are simultaneously interfacing with and covertly operating through our own minds.

It is as if we have become possessed by a self-created Frankenstein monster that is running amok, wreaking untold havoc all over the planet. This Frankenstein monster has seemingly gained a quasi-life and autonomous will of its own, independent of its creator—us—who it holds in its thrall, as we are unable to escape from the out-of-control hell of our own making. In any case, it certainly seems as if there is a force that is hell-bent on stopping us—both individually and collectively as a species—from reaching our full creative potential.

We are at a severe “crisis” point in our world, which, medically speaking, always tells us that our sickness has reached a dangerous climax. Our species is suffering from what the great doctor of the soul C. G. Jung calls a “sickness of dissociation,” which is a state of fragmentation deep within the collective unconscious that has seemingly spilled outside of our skulls and is playing itself out en masse on the world stage. This primordial rupture, which is a form of trauma on a cosmic scale, has become the in-forming force behind human history itself, conditioning the experience of each individual, as well as our species as a whole. Seen as a whole person, it is as if the undivided wholeness of the universe has split into cosmic multiple sub-personalities who are dissociated from and seemingly separate from each other, desperately in need of recognizing their connection so as to come together and reintegrate. Our sickness of dissociation and the world crisis we are facing as a result can be seen, as Jung points out, as the labor pains of a new birth.

Wetiko

Author and environmental activist Derrick Jensen writes in his foreword to the classic book Columbus and Other Cannibals by Native American scholar Jack Forbes, that it is “the most important book ever written on one of the most important topics ever faced by human beings: why is the dominant culture so excruciatingly, relentlessly, insanely, genocidally, ecocidally, suicidally destructive?” Oftentimes, the most important point in finding a solution to a problem is asking the right question; Jensen’s question feels like the right question, a question literally demanding to be answered.

Forbes’ book beautifully elucidates the Native American idea of “wetiko psychosis,” which can be likened to a mind virus that has infected the human psyche.[1] Jung never tired of pointing out that the greatest danger which threatens humanity comes from the psyche. We are living with the very real possibility that millions—maybe even billions—of us can fall into our unconscious together, reinforcing each others’ madness in such a way that we become unwittingly complicit in our own self-destruction. An inner disease of the soul, wetiko flavors our perceptions by stealth and subterfuge so as to act itself out through us while simultaneously hiding itself from being seen. Being an illness that afflicts the psyche itself, wetiko—a term connoting the spirit of evil—is a psycho-spiritual disease of the soul, a disorder of consciousness existing deep within the collective unconscious of humanity that is playing out writ large on the world stage. Like a cannibal, those taken over by wetiko—also called “cannibal sickness”—consume the life force of others, both human and nonhuman, for private purpose or profit, and do so without giving back anything of real value from their own lives.

The idea of wetiko can be enormously helpful in creating a wider context that can assist us in getting a handle on the mass insanity that is playing out in our world today. Though using individuals as its instruments, wetiko—a “collective psychosis”—can’t replicate itself; it needs the unconscious masses for its genesis and proliferation on the world stage. Wetiko psychosis is highly contagious, spreading through the channel of our shared unconsciousness, rendering us oblivious to our own madness. This fluidly moving, nomadically wandering bug reciprocally reinforces and feeds off and into each of our unconscious blind spots, which is how it nonlocally propagates itself throughout the field. A psychic epidemic, wetiko is at the bottom, at the very root of the seemingly never-ending destruction we are wreaking upon ourselves, each other and the very biosphere we depend upon for our survival as a species.

Every wisdom tradition throughout history has been pointing at wetiko in its own unique way. The Gnostics (“the ones who know”), for example, were pointing at wetiko when they spoke of the “Archons,” who they thought of as “mind parasites” which had infiltrated the human mind. The Nag Hammadi text called The Apocryphon of John II describes these Archons, “They sought to overpower humanity in its psychological and perceptual functions…their triumph is in deception.” Wetiko/the Archons occlude us in such a way that our occlusion becomes self-perpetuating, the result being that we can’t even tell we are occluded. Wetiko bedazzles, bewitches, and bedevils consciousness so that we become blind to the underlying, assumed viewpoint through which we perceive, conjure up and give meaning to our experience of both the world and ourselves. An intrinsic challenge to our investigation of the wetiko virus, therefore, is that it is incarnating in and through the very psyche which itself is the means of our inquiry. In our encounter with wetiko, we find ourselves in a situation where we are confronted—practically face-to-face—with the unconscious.

As Jung has pointed out, when it is a question of mass psychosis, nothing but “new symbolic ideas,” i.e., novel, creative, redemptive, archetypal conceptions, brought up from the depths—which embrace, express and help to re-contextualize the emerging chaos and disorder—can save us from the impending catastrophe. This is to say that in light of our current world crisis, a new creative achievement has become a necessity. The concept of wetiko and all that it stands for is precisely such a “new symbolic idea.” What Plato calls “the eyes of the soul,” ideas have real power, as they are the means by which we see the world and creatively envision and give meaning to our lives.

Being a disease of the soul, we all potentially have wetiko, as it pervades and in-forms the underlying field of consciousness. Any one of us at any moment can fall into our unconscious and unwittingly become an instrument for the evil of wetiko to act itself out through us and incarnate in our world, which is a realization that cultivates humility while simultaneously serving as an inoculation against wetiko’s pernicious effects. If we see someone who seems to be taken over by wetiko and we think that they have the disease and we don’t, we have then fallen under the spell of the virus, as wetiko feeds on the inner, psychological process of shadow projection which underlies and informs our experience of separation, polarization and the paranoid fear—and terror—of “the other.”

Wetiko can be conceived of as a cancer of the psyche that slowly metastasizes, gradually subsuming all of the healthy parts of the psyche into itself to serve its sinister agenda. The personality then becomes one-sided, self-organizing an outer display of coherence around this pathogenic core, which masks the inner dysfunction, making it hard to recognize. In a psychic coup d’état, the wetiko bug can usurp and displace a person, who becomes its puppet and marionette. Like a parasite, the wetiko virus can take over and subvert the will of an animal more evolved than itself, enlisting that creature into serving its nefarious agenda. The psychological fact of being taken over by something “other” than ourselves finds expression in the belief in demons and their ability to possess humans, a belief found among all peoples from time immemorial.

Once the wetiko virus becomes sufficiently entrenched within the psyche, the prime directive coordinating a person’s behavior comes from the disease, as it is now the one in the driver’s seat. As it commandeers and colonizes the psyche—centralizing power and control in the process—wetiko eventually incorporates a seemingly autonomous regime within the greater body politic of the psyche. Once it gains a sufficient sovereignty, wetiko forms something like a totalitarian “shadow government” within the psyche which dictates to the ego. Being an archetypal, transpersonal and daemonic energy, wetiko can not only take over an individual, but also a group of people, a nation or even—potentially—an entire species.

Wetiko is especially unique, in that, though an inner disease of the soul, it is able to inform, give shape to and configure events in the outer world so as to synchronistically express—and reveal—itself. For example, as if the boundary has dissolved between the inner and the outer, the internal landscape of the wetikoized psyche is mirrored in the external world through the totalitarian-like “shadow government”—with its ever-increasing centralization of power and control—that has taken over our seeming democracy. Both within our psyche and in our alleged “democracy,” we are allowed our seeming freedom, but only so long as it doesn’t threaten the sovereignty and dominance of the “ruling” power (interestingly, the word “Archon,” a synonym for wetiko, means “ruler”).

Wetiko covertly works through the projective tendencies of the mind to distract us, keeping our attention directed outside of ourselves, thereby obstructing us from finding and utilizing the immense light of intrinsic awareness within, which would “kill” wetiko, rendering it impotent. The “Buddha” (which means one who has woken up to the dreamlike nature of reality) realized in his enlightenment that the solution to the human predicament could never be found externally, but had to be discovered within the very nature of one’s own mind. If we don’t realize that our current world crisis has its roots within, and is an expression of, the human psyche, we are doomed to unconsciously repeat it, continually re-creating endless destruction in more and more amplified form—as if we are having a recurring dream. Our nightmare will then be fated to continue with ever-alarming intensity until we receive its message.

Wetiko can easily trick and deceive us by materializing itself in, as, and through the medium of the outside world, which we then assume—as if entranced—is distinct from our psyche. Once the ever-increasing sociopolitical insanity plays itself out on the world stage, we have all the proof we need that the conflict is outside of ourselves. It then becomes nearly impossible to convince anyone that the source of the conflict is to be found within the psyche of every individual. The psyche has then become exteriorized, as an internal psychic conflict takes place by way of projection in the outside world in living (and dying) flesh and blood. The sponsor of the whole project(ion), the wetiko bug remains behind-the-scenes, invisible and unnoticed.

Wetiko subversively turns our “genius” for reality-creation against us in such a way that we literally become entranced by our God-given power to create our experience of both our world and ourselves so that it boomerangs against us, undermining our potential for individual and collective evolution. Strangely enough, people under the enchantment of wetiko become compulsively, even fanatically, attached to supporting a social or political agenda that oftentimes is diametrically opposed to serving their own best interests. This self-sabotaging behavior is an outer reflection of the inner state of being under the sway of —and unwittingly serving—the self-destructive wetiko parasite.

An aberration of the psyche, wetiko cannot be ultimately healed by merely bringing about external reforms (although such reforms are welcome and needed); it must be dealt with where it originates—within the human psyche of each individual. Wetiko can’t be “legislated” out of existence via political or social means, but can only be transformed within the individual, who, as Jung reminds us, is the real carrier of life.

To the extent we are unconsciously possessed by the spirit of wetiko, it is as if a psychic tapeworm or parasite has taken over our brain and tricked us, its host, into thinking we are feeding and empowering ourselves while we are actually nourishing the parasite. Wetiko is a virulent, psychic pathogen that insinuates thought-forms and beliefs into our mind which, when unconsciously enacted, feed it, and ultimately, like a fatal addiction, kill its host—us. Beyond informing our addictions, wetiko psychosis is itself the addictive process taking living form so as to take life.

Savaged by the ferocity of their unending hunger, people who are sufficiently infected by the wetiko virus, like the hungry ghosts of Buddhist cosmology, have become possessed by an insatiable craving that can never be filled. Not in possession of their true selves, they try to possess something outside of themselves to both escape from and fill the void within—the result is a futile and never-ending grasping. Attempting to secure a self that by its very nature is illusory and thus can never be secured, their appetites can never be quenched, just as an illusion can never be satisfied.

At the collective level, this perverse inner process is mirrored in the outer world by the consumer society in which we live, a culture that continually fans the flames of never-ending and mostly unnecessary desires, conditioning us to always want more. As if starving, we are in an endless feeding frenzy, trying to fill a bottomless spiritual void. In this regard, wetiko can be likened to a psychic eating disorder.

If the planet were seen as a single organism, and people seen as cells in the greater organism of the planet, it would be as if these cells had become cancerous or parasitic, and had turned on themselves, destroying the very organism of which they are a part. Wetiko can be compared to an autoimmune disease of the psyche that is getting collectively acted out, writ large on the world stage. In autoimmune deficiency syndrome, the immune system of the organism, in its attempt to protect itself against perceived attacks, attacks projected aspects of itself that falsely appear to be “other,” leading, ultimately, to its own self-destruction. Bewitched by its own projections—as if hypnotizing itself—the autoimmune system of the wetikoized psyche has fallen under its own self-created illusion and in its state of confusion and trauma, is tricked into creating the very problem it is trying to resolve. One glaring example of how this internal process is getting acted out in the external world: the way our nation is fighting terrorism is creating ever-more terrorists, as if in fighting a fire we are pouring fuel on it.

Once the wetiko virus takes root in our minds and incorporates itself in the world, it “manages our perception” by framing the terms of our inner and outer dialogue through determining the metaphors which dominate the accepted historical narrative, thus controlling the parameters of our conversation and debate. The consensually agreed-upon thought-forms and beliefs act as an intrinsic, built-in control system, defining the limits of what we imagine our possibilities are, as individuals, nations and a species. If we don’t consciously tap into and use the power of our creative imagination, others, particularly “the state,” will be more than happy to do so in our stead.

Just like vampires, full-blown wetikos have a thirst for the very thing they lack—the mystical essence of life—that is, the “blood” of our soul. Wetiko is a deceptive spirit that apes, mimes and imitates the real thing—called the Antimimon pneuma(literally, “counterfeiting spirit”) in the Apocryphon of John (Apoc. John III, 36:17). Impersonating us, if we identify with wetiko’s false version of ourselves, we have then identified with who we are not while simultaneously disconnecting from—and giving away—who we actually are. We then become a duplicate, a copy of ourselves, losing touch with the original.

Wetiko is an expert at imitation, but it has no creativity on its own. Once it “puts us on,” i.e., fooling us into buying into its version of who we are, it can then piggyback onto and plug into our intrinsic creativity, co-opting our creative imagination to serve its malevolent agenda. When we fall under wetiko’s spell, our life-force and God-given creativity become vampirically drained, as we are bled dry of what really counts.

This situation is a reflection of what happens when wetiko infects an organism (be it a person or species)—certain aspects within its bio-system become starved. In essence, when we are under the thrall of wetiko, the creative spirit within us, the very function which connects us to something beyond ourselves, becomes malnourished and impoverished. We then can’t even imagine things being any other way, let alone being able to actively imagine a way out of our dilemma. This points to the profound importance for each of us to intimately connect with the creative spirit living within us as a way of abolishing wetiko’s death sentence.

Many of the institutions in our world are embodiments of the formless wetiko virus taking on corporeal—and incorporated—form. The counterfeiting spirit of wetiko, a true imposter, imitates something but—in a process known as countermimicry—with the intention of making the copy, the fake version, serve a purpose counter to that of the original thing or idea. For example, the entity of the global economic system itself is a living symbol of wetiko disease “in business.” A “real” economy has to do with the production and distribution of goods and services—generating wealth in the process—while the virtual “bubble economy” that we living in is mainly an exercise in profiting from the manipulation of money—draining real wealth in the process. It is as if wetiko has managed to create a simulation of the real economy, replacing the real thing with a copycat version (what I call the “wetikonomy”) that has inverted its original purpose. This is a reflection in the outer world of the covert operations of wetiko within our minds.

Finding the Name

Our collective psychosis is invisible to us, manifesting itself both in the way we are looking at the world as well as the unspoken ways we have been conditioned—i.e., programmed—to not perceive. Wetiko has the power to induce—both individually and en masse—what writer Philip K. Dick calls a “negative hallucination,” i.e., instead of seeing what is not there, we cannot see what isthere. When we are afflicted with wetiko, we literally are unable to see what is right in front of our face. Wetiko is a form of psychic blindness that not only believes itself to be sighted, but believes it is more sighted than those who are actually clear-sighted. This looking away, this “conspiracy of denial” that is endemic to our culture is simultaneously both the cause and effect of wetiko.

Because wetiko is a psychic blindness, the cure for wetiko starts with seeing it—both seeing how it operates in the world and also tracking how it covertly operates within our own minds. In the medical model we describe the various pathogens that make us sick as cancers, bacilli, parasites, plagues, viruses, etc.. Due to the materialistic culture we live in, we are attached to the idea that for something to have “reality” it must be made of a material substance. The implication of this perspective is that if something is not physical it is not real, which disables our capacity to see wetiko. Though “immaterial,” wetiko is as real as we are.

We have to name something, however, before it can be seen, formally “discovered,” and brought into our shared collective cartography. To quote Jung, “For mankind it was always like a deliverance from a nightmare when the new name was found.” Mythologies and fairy tales the world over have been expressing this from time immemorial—finding the name of the offending demon takes away its power over us. This is why it is important to introduce the word “wetiko”—and the idea it represents—into our planetary dialogue.

Once we become more acquainted with the idea of wetiko and all that it entails, we can “spread the word”—creating a new meme in the process—thus conjuring up a living antigen to the heretofore unrecognized mind virus of wetiko. For nothing is more powerful than an idea whose time has come—wetiko is just such an idea, pregnant with new possibilities. Similar to how a vampire hates the light of day, however, the wetiko virus can’t stand to be illumined, for in seeing how wetiko covertly operates through our own consciousness or lack thereof, we not only take away its seeming autonomy and power over us, we empower ourselves.

Seeing the correlation between the inner and the outer—which is to say, seeing the dreamlike nature of reality—is the doorway through which we develop the requisite vision to see wetiko. In a dream, the inner psyche of the dreamer is expressed through, and is therefore not separate from, the outer forms of the dream. Similar to a dream at night, in the waking dream called life, events in the outer world symbolically—and synchronistically—express the inner psychological situation of the dreamer, which is all of us. We don’t have to try to create or fabricate this correlation between the inner and the outer; rather, we simply have to recognize it, for it is always already the case. Once we realize the dreamlike nature of our situation, we have started to develop the eyes to see wetiko, and hence, dispel its malevolent effects. We have then broken the seeming curse we have fallen under (please see my book Dispelling Wetiko: Breaking the Curse of Evil).

A Catalyst for Human Evolution

People taken over by wetiko—a word Jung never used, but in his writings he referred to the same idea by the phrase “totalitarian psychosis”—are often attracted to positions of power, where, as if compelled by forces beyond themselves, they can’t help but to create scorched earths as outer correlates to the inner ravaged landscape of their souls. Insanely enough, many of the people who are most taken over by wetiko are not in asylums, but are freely running around (and running) the world, oftentimes established in positions of great power to influence world events.

Fueled by the myopic vision that prioritizes the bottom line of corporate-driven profits above anything else, people motivated by the greed of the wetiko virus have little meta-awareness of the long-term and whole-system implications of their rapacious actions. All that the wetiko bug craves is to satisfy its narcissistic desires, experience orgasmic release, and glory in the seeming victory of short-term profits. Hiding behind the deceptive banner of “progress,” the Frankenstein monster of ever-enlarging empire, with its incessant, greed-driven need for endless growth, is like a runaway locomotive gaining speed, approaching the catastrophic event horizon of its inevitable crash. Meanwhile, this “progress” destroys people, families, communities and threatens our entire species, as we potentially trigger a “sixth mass-extinction event.”

At the heart of wetiko is our identification with and subsequent grasping onto an illusory “me,” a seemingly separate, independent self which doesn’t actually exist in the way we think it does. Clinging onto this false sense of self—a “lethal mirage” that becomes a self-perpetuating addictive process with a life of its own—our life-force then gets continually invested into protecting, defending and maintaining an illusion. Identifying with a self-constructed illusion whose originating conditions remain obscure is the stuff of which madness is made.

Reciprocally co-arising with the subjectively convincing and self-validating feeling of a separate “I” is the feeling of “mine,” the sense that this “I” can possess and own things. Modern humanity is, in Walt Whitman’s phrase, “demented with the mania of owning things.” We insanely devote so much of our time and energy—our precious human life—in trying to obtain material goods that we really don’t need and that bring no real benefit to us. Speaking of the white man, Chief Seattle said, “His appetite will devour the earth and leave behind only a desert.” Along similar lines, Sitting Bull said, “the love of possession is a disease with them.” This love of possessing things to fill a void that can never be filled is wetiko disease in a nutshell.

Wetiko is a collectively “dreamed up” phenomena in which we are all ultimately implicated. This means that—at least in theory if not in practice—we have the capacity to dream it differently. In other words, because we’ve created wetiko, we can “un-create” it. We don’t yet know how to do this, however, or we wouldn’t be continuing to create it in a way that is destroying us. Our unconscious process of dreaming up wetiko in all its full-blown destructiveness is the way we are teaching ourselves how to not destroy ourselves, which we evidently haven’t yet learned or we wouldn’t be destroying ourselves. The fact that we wouldn’t have realized how to not destroy ourselves without wetiko’s arrival on the scene is to say that the seeming curse of wetiko actually has a hidden blessing secretly encoded within it.

Wetiko is a quantum phenomenon, in that it contains superposed within it both the deepest darkest evil imaginable, while hidden within it is its own medicine. Encoded within wetiko’s pathology is not only its own cure but a precious gift, as it can—in true quantum style, “potentially”—introduce us to our own agency in calling forth our experience of both the world and ourselves. In other words, the wetiko epidemic is revealing to us our nature as empowered co-dreamers/creators of a universe that is more malleable, plastic and dreamlike than we have previously imagined.

Similar to how the unconscious compensates a one-sidedness in the psyche through the dreams it sends our way, the totalitarian psychosis/wetiko running rampant throughout the world today is the psyche’s way of revealing to us that we are forgetting the crucial role it plays in creating our experience. Marginalizing our own authorship and authority, we then dream up totalitarian forces to limit our freedom and create our experience for us. The “totalitarian psychosis” known as wetiko is, in Jung’s words, “forcing us to pay attention to the psyche and our abysmal unconsciousness of it. Never before has mankind as a whole experienced the numen of the psychological factor on so vast a scale.” Literally demanding that we pay attention to our own psyche, wetiko is thus the greatest catalyst for human evolution that our species has ever encountered.

Wetiko can literally destroy our species through wrenching poverty, endless war and catastrophic environmental destruction. Or, if confronted, named and understood, it can introduce us to the dreamlike nature of reality, which changes everything. Wetiko is a living revelation that only reveals its gifts to us, however, if we recognize what it is a reflection of within ourselves. How it manifests depends upon how we dream it. The choice is truly ours.

It is as if through the instrument of wetiko, a higher intelligence is revealing to us the wholeness of our totality through our darker side. This darkness is revealing light by contrast to itself. As we recognize that the evil we see playing out in the world is a reflection of our own darkness, we notice that, paradoxically, with our increase in consciousness the good and positive features within us come more to light too. As we more and more recognize the correlation between the outer world with what is going on deep within our soul, the enlightened aliens, who have been signaling to us the dreamlike nature of our situation by synchronistically arranging events in the world to reflect back what’s going on deep within us, hide behind the scenes, laughing.

In a highly indebted world, austerity is a permanent state of affairs

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By Mark Blyth

Source: Aeon

By 2010, everyone had heard the ‘austerity’ rallying cry. Immediately following the 2008 financial crisis, especially in Europe, it resounded: ‘Stimulate no more, now is the time for all to tighten!’ And tighten governments did, cutting public expenditure across continental Europe, and in the United Kingdom and the United States.

The logic behind ‘austerity’ holds that ‘the market’ – which the public had just bailed out – did not like the debt incurred when states everywhere rescued and recapitalised their banking systems. Unsurprisingly, tax revenues fell as the economy slowed and state expenditures rose. And what were once private debts on the balance sheets of banks became public debt on the balance sheet of states. Given this sorry state of affairs, states (policymakers and business leaders argued) had to take action to restore ‘business confidence’ – which is apparently always and everywhere created by cutting government spending. So governments cut.

Public debt, however, grew, because economies got smaller and grew slower the more they cut. The ‘confidence fairy’ as Paul Krugman named the expected effect, simply failed to show up. Why?

The reason is simple – and it is surprising anyone thought that anything else would happen. Imagine an economy as a sum, with a numerator and a denominator. Make total debt 100 and stick that on the top (the numerator). Make Gross Domestic Product (GDP) 100 and stick that on the bottom (the denominator) to give us a 100 per cent debt-to-GDP ratio. If you cut total spending by 20 per cent to restore ‘confidence’, the economy is ‘balanced’ at 100/80. That means the debt-to-GDP ratio of the country just went up to 120 per cent, all without the government issuing a single cent of new debt.

In short, cuts to spending in a recession make the underlying economy contract. After all, government workers have lost jobs or income, and government workers not shopping has the same effect as private sector workers not shopping. So the debt goes up as the economy shrinks further. States respond by cutting spending further. The pattern continues.

Having a common currency among different countries actually aggravates the problem because cuts in one state reverberate through many states, depressing them all. In 2008, euro area government debt as a share of the economy, including the already profligate Greeks, averaged around 65 per cent of GDP. Following budget cuts and monetary tightening (the European Central Bank twice pushed up interest rates in 2011) Euro Area government debt, by 2014, had risen to 92 per cent of GDP.

Greece is the poster child for this ‘denominator effect’. Under the auspices of ‘bailouts’ from the IMF and the EU, Greece cut more than 20 per cent of GDP in spending. It lost nearly 30 per cent in final consumption. Yet its debt increased from 103 per cent in 2006 to more than 180 per cent by 2014. That’s a 57 per cent increase in debt while spending is being cut.

Let’s look at the originating question again: how is destroying a third of the economy supposed to inspire consumer and business confidence? It won’t – unless you are a creditor – and that’s where the politics comes in.

If you are a holder of government debt (a creditor), three things hurt the value of your asset: if the inflation rate goes above the interest rate on your bond; if the exchange rate moves against you so that what the bond is worth vis-à-vis other currencies falls; and, of course, default – if the government takes the money and runs.

In the post-crisis world, despite major central banks putting trillions of dollars into the global money supply, there is almost no inflation anywhere in the developed world. Exchange rates (Brexit effects apart) are comparatively stable and ultimately move against each other relatively, so that’s not a huge worry. If the country whose debt you hold can have elections, and the public dares to vote against more budget cuts, the European Central Bank will shut down their banking system to make them revisit their choices. That’s what they did to Greece in the summer of 2015.

In this world, our present world, creditors will get paid and debtors will get squeezed. Budgets will be cut to make sure that bondholders get their money. And, in a highly indebted world, austerity – introduced as an ‘emergency’ measure to save the economy, to right the fiscal ship – becomes a permanent state of affairs.

As Britain’s former prime minister David Cameron said (standing beside a throne in a white bow-tie and tails) in 2013: ‘We need to do more with less. Not just now, but permanently.’ But here’s the question hidden in that blithe statement – are you and me part of the ‘we’ here?

Let’s go back to the huge jump in public debt that occurred when governments, ie the people, bailed out the banks. That debt was not, and is not, a liability. As difficult as it can be to make this reality part of the political conversation, public debt is an asset. Even at today’s low rates, it earns interest and retains value. No one is forced to invest in public debt, but every time bonds are issued investors show up and buy them by the truckload. By market criteria, public debt is a great investment.

But who pays for it? That would be the taxpayer. More generally, those who contribute to the payment of debts by not consuming government-produced services that have been cut. Basically, in most countries, this means that the bottom 70 per cent of the income distribution bears the cost of paying for public debt.

Over the past 25 years, to make up for chronically low wage growth, that same 70 per cent of the population has increased its personal indebtedness. Massively. Which means that in an economy deformed by austerity, they are the ones paying out – twice. With stagnant or declining wages, they have to service both the massive private debt they have accumulated to live and the public debt issued in their name.

Meanwhile, those whose assets the public bailed out – those with investible wealth, those who hold ‘all that debt’ and make money from it – do not suffer from the decline in public spending. Since they are net lenders, the hike in personal indebtedness does not trouble them either.

The result, and the situation in which we find ourselves, is a classic bad equilibrium. Those who can’t pay, and don’t earn enough, are being asked to pay the most to service debt, from which they do not and will not benefit. Those who can pay, and earn almost all the income, both contribute the least and benefit the most from ‘all that debt’.

Strip away all the electoral politics at the moment in the US, the UK, Italy, Spain and elsewhere, and that’s the underlying political economy. It’s a creditor/debtor stand-off where the creditors have the whip hand.

And yet, the more they crack the whip, the more the backlash against austerity, in all its forms, gains strength. Donald Trump, Jeremy Corbyn, Marine Le Pen, Pablo Iglesias: Left or Right, they are all riding debtor anger against creditor strength. It might be expressed as anger against, variously, ‘trade’ or ‘the elite’ or the ‘EU’. But what’s underneath all that is the politics of debt.

This is the ‘new normal’. It’s not about flat interest rates or anaemic growth rates. They are the consequences of austerity, not its causes. The new normal is the new politics of debtors versus creditors. It’s here to stay. As we already can see, it’s going to be anything but normal.

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

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

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By Prof Michel Chossudovsky

Source: GlobalResearch.ca

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

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

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

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

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

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

Beyond the Globalization of Poverty 

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

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

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

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

The New World Order

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

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

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

• the Anglo-American Oil and Energy Giants,

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

• Big Pharma,

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

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

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

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

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

Media Propaganda

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

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

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

Destabilizing Competing Poles of Capitalist Development

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

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

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

Latin America: The Transition towards a “Democratic Dictatorship”

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

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

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

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

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

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

 

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