The Stomach-Churning Violence of the Agrochemical Oligopoly

Posted on February 12, 2019 by Reid Mukai

By Colin Todhunter

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted on February 11, 2019 by Reid Mukai

By The Saker and Michael Hudson

Source: The Saker

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Prices, plutocrats, and corporate concentration

Posted on February 5, 2019 by Reid Mukai

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

By Sam Pizzigati

Source: Nation of Change

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted on January 25, 2019 by Reid Mukai

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

By Ben Norton

Source: GrayZone

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

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

The citizens of Venezuela have suffered for too long at the hands of the illegitimate Maduro regime. Today, I have officially recognized the President of the Venezuelan National Assembly, Juan Guaido, as the Interim President of Venezuela. https://t.co/WItWPiG9jK

— Donald J. Trump (@realDonaldTrump) January 23, 2019

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

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

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

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

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

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

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

U.S. aligned states Ecuador, Chile, Argentina, Brazil, Colombia & Costa Rica reportedly back U.S. led "diplomatic coup" and cease recognizing Maduro as president of Venezuela and swap to U.S. backed opposition figure Juan Guaidó. Bolivia, Cuba, and Mexico stay with Maduro. https://t.co/2AbGa817tB

— WikiLeaks (@wikileaks) January 23, 2019

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

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

Opposition Plans for Privatized ‘Free Market’ Economy

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

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

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

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

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

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

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

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

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

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

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

“The War on Terrorism” is “Fake”: On the Need for Mass Social Mobilizations and Transformative Changes

Posted on January 9, 2019 by Reid Mukai

By Mark Taliano

Source: GlobalResearch.ca

Myriad agencies, funded by Western governments, foundations, and NATO, continue to erect o barriers to freedoms of thought and expression in the West’s post-democratic, New Fascist, societies.

The totalitarianism implicit in these restrictions means that colonial media is monochromatic, tightly framed, and ubiquitous. There is no “free exchange” of ideas, a necessary foundation of democratic societies. Hence, messaging that promotes wars of aggression, and dysfunctional economic ideologies remains ascendant in the public sphere.

The public is led to believe that never-ending criminal wars and vast outflows of public monies to the military industrial complex are normal and necessary. Similarly, publicly bailed-out, predatory, diseconomies are presented as the only viable economic models. Socially-oriented, (democratic) political economies, we are told, “do not work”. The public remains unaware that Empire wages criminal economic and “kinetic”, terrorist-supporting warfare, against societies that seek to determine their own political economies. Socially-oriented political-economies in countries such as Libya, Iraq, Syria, Nicaragua, Venezuela and on and on, are constantly under attack, and not allowed to thrive. Empire targets these countries criminally, aggressively, and perpetually.

The covert barriers which create bounded, framed restrictions on freedoms of expression create a “chilling effect” that promotes self-censorship, and disappears evidence-based truths which would otherwise counter-balance narratives from media conglomerates, all of which are unduly impacted, and subservient to “establishment” pressures from Big Oil, Banking, Military Industrial Complex, Big Pharmaceutical, and other monopolies.

Thought leaders who step outside of the confines of Establishment narratives are targeted. The University of Sydney’s warrantless suspension of best-selling author and Senior lecturer, Prof. Tim Anderson[1], from his teaching duties, is a case in point. Not only does his suspension create a “chilling effect”, and a culture of academic self-censorship, but it also restricts the amount of evidence-based research that reaches the public arena.

Military/Intelligence fronts, such as the Integrity Initiative[2]– well-funded by state agencies and even NATO[3]– add to the oppression, not only by targeting individuals for smear campaigns, but also by guaranteeing a non-stop flow of war propaganda.

Time and again, policymakers use Private Intelligence Contractors (PICS) as sources of fake intelligence that they wrap around previously planned policies, to give an air of credibility to war propaganda. Have we forgotten already the lies used to justify the West’s supremely criminal destruction of Iraq? All of the post-9/11 wars (and beyond) were sold to gullible domestic populations by means of well-planned strategies of deception.

It is an unequal battle, but the broad-based public must first free itself from foundational war lies if we are to make transformative changes. Foremost amongst these lies is “The War On Terrorism”. The public needs to understand that this War on Terror myth is cover for criminal wars of conquest. Our governments and their agencies support the terrorists. Pretending that the West is fighting ISIS and other terrorists (i.e al Qaeda) prolongs the suffering of its victims, past, present, and future. It is not a war against ISIS. It never was. The West and its allies support all of the terrorists in Syria, (and beyond), including ISIS.

If the public can be disabused of the “War on Terrorism” myth, then it will be ready for mass social unrest and mobilizations for fundamental reforms. Incremental reforms only bolster Establishment positions by providing illusions of democratic policymaking.

For starters, Canada needs to leave NATO, cut its military budget, end its “neoliberal” diseconomy, instate a socially-oriented economy, and regain its sovereignty and democracy.

Given all of the structural barriers that we face, these goals may never be achieved, but we still “win” when we at least struggle for justice.

Note to readers: please click the share buttons. Forward this article to your email lists. Crosspost on your blog site, internet forums. etc.

Mark Taliano is a Research Associate of the Centre for Research on Globalization (CRG) and the author of Voices from Syria, Global Research Publishers, 2017.

Notes

[1] Prof. Tim Anderson, “STEPHEN GARTON’S OVERREACH: INTELLECTUAL FREEDOM AT THE UNIVERSITY OF SYDNEY.” Avant Garde, 12 December, 2018.( https://avantgarde2009.wordpress.com/2018/12/12/stephen-gartons-overreach-intellectual-freedom-at-the-university-of-sydney/?fbclid=IwAR1MpVAZX-F7LcuwbZvSzHAio1mN-L2BemweI7IVMuBrEGrjRjT-sRSRLpc) Accessed 19 December, 2018.

[2] Mohamed Elmaazi and Max Blumenthal, “Inside The Temple Of Covert Propaganda: The Integrity Initiative And The U.K’s Scandalous Information War.” Gray Zone,17 November, 2018. (https://grayzoneproject.com/2018/12/17/inside-the-temple-of-covert-propaganda-the-integrity-initiative-and-the-uks-scandalous-information-war/) Accessed 19 December, 2018.

[3] George Eliason, “A Crisis in Intelligence: Unthinkable Consequences of Outsourcing U.S. Intel. (Part 3)” Consortium News, 18 February, 2018.( https://consortiumnews.com/2018/02/18/a-crisis-in-intelligence-unthinkable-consequences-of-outsourcing-u-s-intel-part-3/?fbclid=IwAR2DKmAtaSMattb28apQZ-gCJ61stFYP3jem97t93PLm-bSpQLGp-0Z_4No) Accessed 18 February, 2018.

Wall Street, Banks, and Angry Citizens

Posted on January 8, 2019 by Reid Mukai

The Inequality Gap on a Planet Growing More Extreme

By Nomi Prins

Source: TomDispatch.com

As we head into 2019, leaving the chaos of this year behind, a major question remains unanswered when it comes to the state of Main Street, not just here but across the planet. If the global economy really is booming, as many politicians claim, why are leaders and their parties around the world continuing to get booted out of office in such a sweeping fashion?

One obvious answer: the post-Great Recession economic “recovery” was largely reserved for the few who could participate in the rising financial markets of those years, not the majority who continued to work longer hours, sometimes at multiple jobs, to stay afloat. In other words, the good times have left out so many people, like those struggling to keep even a few hundred dollars in their bank accounts to cover an emergency or the 80% of American workers who live paycheck to paycheck.

In today’s global economy, financial security is increasingly the property of the 1%. No surprise, then, that, as a sense of economic instability continued to grow over the past decade, angst turned to anger, a transition that — from the U.S. to the Philippines, Hungary to Brazil, Poland to Mexico — has provoked a plethora of voter upheavals. In the process, a 1930s-style brew of rising nationalism and blaming the “other” — whether that other was an immigrant, a religious group, a country, or the rest of the world — emerged.

This phenomenon offered a series of Trumpian figures, including of course The Donald himself, an opening to ride a wave of “populism” to the heights of the political system. That the backgrounds and records of none of them — whether you’re talking about Donald Trump, Viktor Orbán, Rodrigo Duterte, or Jair Bolsonaro (among others) — reflected the daily concerns of the “common people,” as the classic definition of populism might have it, hardly mattered. Even a billionaire could, it turned out, exploit economic insecurity effectively and use it to rise to ultimate power.

Ironically, as that American master at evoking the fears of apprentices everywhere showed, to assume the highest office in the land was only to begin a process of creating yet more fear and insecurity. Trump’s trade wars, for instance, have typically infused the world with increased anxiety and distrust toward the U.S., even as they thwarted the ability of domestic business leaders and ordinary people to plan for the future. Meanwhile, just under the surface of the reputed good times, the damage to that future only intensified. In other words, the groundwork has already been laid for what could be a frightening transformation, both domestically and globally.

That Old Financial Crisis

To understand how we got here, let’s take a step back. Only a decade ago, the world experienced a genuine global financial crisis, a meltdown of the first order. Economic growth ended; shrinking economies threatened to collapse; countless jobs were cut; homes were foreclosed upon and lives wrecked. For regular people, access to credit suddenly disappeared. No wonder fears rose. No wonder for so many a brighter tomorrow ceased to exist.

The details of just why the Great Recession happened have since been glossed over by time and partisan spin. This September, when the 10th anniversary of the collapse of the global financial services firm Lehman Brothers came around, major business news channels considered whether the world might be at risk of another such crisis. However, coverage of such fears, like so many other topics, was quickly tossed aside in favor of paying yet more attention to Donald Trump’s latest tweets, complaints, insults, and lies. Why? Because such a crisis was so 2008 in a year in which, it was claimed, we were enjoying a first class economic high and edging toward the longest bull-market in Wall Street history. When it came to “boom versus gloom,” boom won hands down.

None of that changed one thing, though: most people still feel left behind both in the U.S. and globally. Thanks to the massive accumulation of wealth by a 1% skilled at gaming the system, the roots of a crisis that didn’t end with the end of the Great Recession have spread across the planet, while the dividing line between the “have-nots” and the “have-a-lots” only sharpened and widened.

Though the media hasn’t been paying much attention to the resulting inequality, the statistics (when you see them) on that ever-widening wealth gap are mind-boggling. According to Inequality.org, for instance, those with at least $30 million in wealth globally had the fastest growth rate of any group between 2016 and 2017. The size of that club rose by 25.5% during those years, to 174,800 members. Or if you really want to grasp what’s been happening, consider that, between 2009 and 2017, the number of billionaires whose combined wealth was greater than that of the world’s poorest 50% fell from 380 to just eight. And by the way, despite claims by the president that every other country is screwing America, the U.S. leads the pack when it comes to the growth of inequality. As Inequality.org notes, it has “much greater shares of national wealth and income going to the richest 1% than any other country.”

That, in part, is due to an institution many in the U.S. normally pay little attention to: the U.S. central bank, the Federal Reserve. It helped spark that increase in wealth disparity domestically and globally by adopting a post-crisis monetary policy in which electronically fabricated money (via a program called quantitative easing, or QE) was offered to banks and corporations at significantly cheaper rates than to ordinary Americans.

Pumped into financial markets, that money sent stock prices soaring, which naturally ballooned the wealth of the small percentage of the population that actually owned stocks. According to economist Stephen Roach, considering the Fed’s Survey of Consumer Finances, “It is hardly a stretch to conclude that QE exacerbated America’s already severe income disparities.”

Wall Street, Central Banks, and Everyday People

What has since taken place around the world seems right out of the 1930s. At that time, as the world was emerging from the Great Depression, a sense of broad economic security was slow to return. Instead, fascism and other forms of nationalism only gained steam as people turned on the usual cast of politicians, on other countries, and on each other. (If that sounds faintly Trumpian to you, it should.)

In our post-2008 era, people have witnessed trillions of dollars flowing into bank bailouts and other financial subsidies, not just from governments but from the world’s major central banks. Theoretically, private banks, as a result, would have more money and pay less interest to get it. They would then lend that money to Main Street. Businesses, big and small, would tap into those funds and, in turn, produce real economic growth through expansion, hiring sprees, and wage increases. People would then have more dollars in their pockets and, feeling more financially secure, would spend that money driving the economy to new heights — and all, of course, would then be well.

That fairy tale was pitched around the globe. In fact, cheap money also pushed debt to epic levels, while the share prices of banks rose, as did those of all sorts of other firms, to record-shattering heights.

Even in the U.S., however, where a magnificent recovery was supposed to have been in place for years, actual economic growth simply didn’t materialize at the levels promised. At 2% per year, the average growth of the American gross domestic product over the past decade, for instance, has been half the average of 4% before the 2008 crisis. Similar numbers were repeated throughout the developed world and most emerging markets. In the meantime, total global debt hit $247 trillion in the first quarter of 2018. As the Institute of International Finance found, countries were, on average, borrowing about three dollars for every dollar of goods or services created.

Global Consequences

What the Fed (along with central banks from Europe to Japan) ignited, in fact, was a disproportionate rise in the stock and bond markets with the money they created. That capital sought higher and faster returns than could be achieved in crucial infrastructure or social strengthening projects like building roads, high-speed railways, hospitals, or schools.

What followed was anything but fair. As former Federal Reserve Chair Janet Yellen noted four years ago, “It is no secret that the past few decades of widening inequality can be summed up as significant income and wealth gains for those at the very top and stagnant living standards for the majority.” And, of course, continuing to pour money into the highest levels of the private banking system was anything but a formula for walking that back.

Instead, as more citizens fell behind, a sense of disenfranchisement and bitterness with existing governments only grew. In the U.S., that meant Donald Trump. In the United Kingdom, similar discontent was reflected in the June 2016 Brexit vote to leave the European Union (EU), which those who felt economically squeezed to death clearly meant as a slap at both the establishment domestically and EU leaders abroad.

Since then, multiple governments in the European Union, too, have shifted toward the populist right. In Germany, recent elections swung both right and left just six years after, in July 2012, European Central Bank (ECB) head Mario Draghi exuded optimism over the ability of such banks to protect the financial system, the Euro, and generally hold things together.

Like the Fed in the U.S., the ECB went on to manufacture money, adding another $3 trillion to its books that would be deployed to buy bonds from favored countries and companies. That artificial stimulus, too, only increased inequality within and between countries in Europe. Meanwhile, Brexit negotiations remain ruinously divisive, threatening to rip Great Britain apart.

Nor was such a story the captive of the North Atlantic. In Brazil, where left-wing president Dilma Rouseff was ousted from power in 2016, her successor Michel Temer oversaw plummeting economic growth and escalating unemployment. That, in turn, led to the election of that country’s own Donald Trump, nationalistic far-right candidate Jair Bolsonaro who won a striking 55.2% of the vote against a backdrop of popular discontent. In true Trumpian style, he is disposed against both the very idea of climate change and multilateral trade agreements.

In Mexico, dissatisfied voters similarly rejected the political known, but by swinging left for the first time in 70 years. New president Andrés Manuel López Obrador, popularly known by his initials AMLO, promised to put the needs of ordinary Mexicans first. However, he has the U.S. — and the whims of Donald Trump and his “great wall” — to contend with, which could hamper those efforts.

As AMLO took office on December 1st, the G20 summit of world leaders was unfolding in Argentina. There, amid a glittering backdrop of power and influence, the trade war between the U.S. and the world’s rising superpower, China, came even more clearly into focus. While its president, Xi Jinping, having fully consolidated power amid a wave of Chinese nationalism, could become his country’s longest serving leader, he faces an international landscape that would have amazed and befuddled Mao Zedong.

Though Trump declared his meeting with Xi a success because the two sides agreed on a 90-day tariff truce, his prompt appointment of an anti-Chinese hardliner, Robert Lighthizer, to head negotiations, a tweet in which he referred to himself in superhero fashion as a “Tariff Man,” and news that the U.S. had requested that Canada arrest and extradite an executive of a key Chinese tech company, caused the Dow to take its fourth largest plunge in history and then fluctuate wildly as economic fears of a future “Great Something” rose. More uncertainty and distrust were the true product of that meeting.

In fact, we are now in a world whose key leaders, especially the president of the United States, remain willfully oblivious to its long-term problems, putting policies like deregulation, fake nationalist solutions, and profits for the already grotesquely wealthy ahead of the future lives of the mass of citizens. Consider the yellow-vest protests that have broken out in France, where protestors identifying with left and right political parties are calling for the resignation of neoliberal French President Emmanuel Macron. Many of them, from financially starved provincial towns, are angry that their purchasing power has dropped so low they can barely make ends meet.

Ultimately, what transcends geography and geopolitics is an underlying level of economic discontent sparked by twenty-first-century economics and a resulting Grand Canyon-sized global inequality gap that is still widening. Whether the protests go left or right, what continues to lie at the heart of the matter is the way failed policies and stop-gap measures put in place around the world are no longer working, not when it comes to the non-1% anyway. People from Washington to Paris, London to Beijing, increasingly grasp that their economic circumstances are not getting better and are not likely to in any presently imaginable future, given those now in power.

A Dangerous Recipe

The financial crisis of 2008 initially fostered a policy of bailing out banks with cheap money that went not into Main Street economies but into markets enriching the few. As a result, large numbers of people increasingly felt that they were being left behind and so turned against their leaders and sometimes each other as well.

This situation was then exploited by a set of self-appointed politicians of the people, including a billionaire TV personality who capitalized on an increasingly widespread fear of a future at risk. Their promises of economic prosperity were wrapped in populist platitudes, normally (but not always) of a right-wing sort. Lost in this shift away from previously dominant political parties and the systems that went with them was a true form of populism, which would genuinely put the needs of the majority of people over the elite few, build real things including infrastructure, foster organic wealth distribution, and stabilize economies above financial markets.

In the meantime, what we have is, of course, a recipe for an increasingly unstable and vicious world.

Senate Report on Russian Interference Was Written By Disinformation Warriors Behind Alabama ‘False Flag Operation’

Posted on January 4, 2019 by Reid Mukai

Hailed by Congress and the media as defenders of democracy, high-tech Russiagate hustlers Jonathon Morgan and Ryan Fox have been exposed for waging “an elaborate ‘false flag’ operation” to swing the 2017 Alabama senate race.

By Dan Cohen

Source: Gray Zone

On December 17, two reports detailing ongoing Russian interference operations commissioned by the Senate Intelligence Committee were made public. They generated a week’s worth of headlines and sent members of Congress and cable news pundits into a Cold War frenzy. According to the report, everything from the Green Party’s Jill Stein to Instagram to Pokemon Go to the African American population had been used and confused by the deceptive Facebook pages of a private Russian troll farm called the Internet Research Agency.

Nevermind that 56% of the troll farm’s pages appeared after the election, that 25% of them were seen by no one, or that their miniscule online presence paled in comparison to the millions of dollars spent on social media by the two major presidential campaigns and their supporters to sway voters. This was an act of war that demanded immediate government action.

According to Sen. Mark Warner, the Democratic chair of the Senate Intelligence Committee, the reports were “a wake up call” and a “bombshell” that was certain to bring “long-overdue guardrails when it comes to social media”. His Republican counterpart on the committee, North Carolina Senator Richard Burr, hailed the research papers as “proof positive that one of the most important things we can do is increase information sharing between the social media companies who can identify disinformation campaigns and the third-party experts who can analyze them.”

Incredible. These bombshell reports demonstrate just how far Russia went to exploit the fault lines of our society and divide Americans, in an attempt to undermine and manipulate our democracy. Here's what we’ve learned:https://t.co/GTfDX4roLP

— Mark Warner (@MarkWarner) December 17, 2018

But the authors of one of the reports soon suffered a major blow to their credibility when it was revealed that they had engaged in what they called a “Russian style” online disinformation operation aimed to swing a hotly contested special senate election. The embarrassing revelation has already resulted in one of the authors having his Facebook page suspended.

The well-funded deception was carried out by New Knowledge, a private cyber intelligence firm founded by two self-styled disinformation experts who are veterans of the Obama administration: Jonathon Morgan and Ryan Fox.

‘It may be designed to manipulate you’

Morgan began his career as a product manager at AOL before founding a series of start ups, some with funding from the United States Agency for International Development and Silicon Valley billionaire Pierre Omidyar’s Omidyar Network. Once a Brookings Institution researcher and special advisor to the Obama White House and State Department, Morgan founded Data for Democracy, a volunteer organization said to use “public data to monitor the election system for signs of fraud.” Morgan also developed technology for the Defense Advanced Research Projects Agency (DARPA), the arm of the Department of Defense created for basic, applied technological research, and futuristic war toys.

Rising through the ranks of the national security apparatus, Morgan ultimately emerged as a go-to source for credulous reporters seeking to blame Hillary Clinton’s loss to Donald Trump on Russian disinformation.

In an interview with the local CBS affiliate in Austin, Texas, Morgan told viewers that feelings of discontent were telltale signs that they had been duped by Russian disinformation. “If it makes you feel too angry or really provokes that type of almost tribal response, then it may be designed to manipulate you… People should be concerned about things that encourage them to change their behavior,” he warned.

.@jonathonmorgan suggests Russia deceives Muslims into believing that Obama oversaw a drone assassination program https://t.co/TX2rYDnjIh pic.twitter.com/StqMB7dFKm

— Max Blumenthal (@MaxBlumenthal) October 14, 2017

Fox, for his part, is a 15-year veteran of the National Security Agency and was a computer analyst for the Joint Special Operations Command (JSOC) military unit. JSOC is notorious for its spree of atrocities across the Middle East including digging their bullets out of dead pregnant women’s bodies in Afghanistan. Comparatively little information is available about Fox’s background.

Since receiving an $11 million investment from venture capital firm, GGV Capital, in August 2017, New Knowledge has positioned itself as one of the leading private intelligence firms taking on the scourge of Russian disinformation. The outfit made its biggest splash on December 17th when it published one of the two Senate Intelligence Committee-commissioned reports.

The report, titled “The Tactics and Tropes of the Internet Research Agency,” was oversseen by Renee DiResta, a former Wall Street trader and tech specialist who was recruited by Obama’s State Department to devise strategies for combating online ISIS propaganda. The New York Times described DiResta as one among a small group of “hobbyists” who “meticulously logged data and published reports on how easy it was to manipulate social media platforms.”

The hobby lobby of online obsessives converged at New Knowledge this year to sound the alarm on supposed Russian disinformation. In a New York Times op-ed published as Americans went to cast their votes in the midterm elections, Morgan and Fox alleged that the Kremlin was secretly running hundreds of propaganda websites in an effort to swing the outcomes. That assertion ran counter to the narrative the two operatives had been spinning out just months before.

In an interview earlier in the year, Ryan Fox suggested that despite the Trump administration’s multiple rounds of sanctions against Russia, Vladimir Putin was so satisfied with the state of U.S. affairs that the Kremlin had actually cut back on its supposed interference. “Strategically, are they content with the way things are? Does it play in their favor to do anything right now? That’s a valid question,” Fox said. “Keep up the momentum, keep poking away. But do they have to implement drastic measures like hacking the DNC and exposing thousands of emails? Probably not.”

More recently, Fox claimed to have identified hundreds of Russian-controlled Facebook and Twitter accounts active in France’s Yellow Vest movement, which has raged against the country’s neoliberal leadership and sparked anxiety among centrist elites across the Atlantic.

“There has been some suspect activity,” a French cybersecurity official said. “We are in the process of looking at its impact.” https://t.co/vfkAOG7Q7S

— The Wall Street Journal (@WSJ) December 15, 2018

However, Fox produced no evidence to support his incendiary accusation, prompting reporters to qualify his assertions as “very likely” and write that he merely “believes” Russian interference took place.

Drafting the dubious bot dashboard

Morgan is also one the developers of the Hamilton 68 dashboard, an online project dedicated to inflaming public outrage over online Russian bots. Funded by the German Marshall Fund’s Alliance for Securing Democracy – which is itself backed by NATO and USAID – Hamilton 68 claims to track hundreds of accounts supposedly linked to Russian influence operations. The effort has largely succeeded in drawing positive media attention despite one of its founders, Clint Watts, admitting that the Twitter accounts it follows may actually be real people who are not Russian at all.

When Morgan was asked what techniques Hamilton 68 uses to identify Russian influence operations, he offered a confident-sounding but ultimately empty answer: “We developed some techniques for determining who matters in a conversation… Using some of those techniques, we’ve identified a subset of accounts that we’re very confident are core to furthering the Russian narrative in response to mainstream events.”

Because Morgan and his colleagues have explicitly refused to name the accounts monitored by Hamilton 68, his claims can never be proven.

In a lengthy profile of the musicologist-turned-New Knowledge “online detective” Kris Shaffer, Foreign Policy described the supposed methodology he employed to identify Russian disinfo operations: “By working with massive datasets of tweets, Facebook posts, and online articles, he is able to map links between accounts, similarities in the messages they post, and shared computer infrastructure.”

The article added an extraordinarily revealing disclaimer: “This method of analysis is in its infancy, remains a fairly blunt instrument, and still requires human intervention. It sometimes mistakes real people who post anti-imperialist arguments about U.S. foreign policy for Kremlin trolls, for example.”

It may have been that New Knowledge had no knowledge at all of Kremlin botnets, but their reports were nonetheless treated as gospel by droves of credulous reporters eager to make their name in the frenzied atmosphere of Russiagate.

“We orchestrated an elaborate ‘false flag’ operation”

According to an internal New Knowledge report first seen by the New York Times, the firm carried out a multi-faceted influence operation designed to undermine a 2017 bid by right-wing Republican former state supreme court judge Roy Moore for an open Alabama senate seat. By its own admission, New Knowledge’s campaign capitalized on the the sexual assault allegations against Moore to “enrage and energize Democrats” and “depress turnout” among Republicans.

To accomplish this, the New Knowledge team created a Facebook page aimed at appealing to conservative Alabamians by encouraging them to endorse an obscure patio supply salesman-turned-write-in candidate named Mac Watson. They hoped the subterfuge would peel votes away from Moore. It was precisely the kind of tactic that New Knowledge claims Russian troll farms carry out to sow divisions among the American electorate.

Morgan told the New York Times the effort stopped there. But the New Knowledge report says the Facebook page “boosted” Watson’s campaign and even arranged interviews for him with The Montgomery Advertiser and the Washington Post. At the same time, Watson’s Twitter following mysteriously jumped from 100 to about 10,000.

Of the dozens of conservative Alabamian Facebook pages the Watson campaign messaged, the New Knowledge-run page was the only one that responded to it. “You are in a particularly interesting position and from what we have read of your politics, we would be inclined to endorse you”, they wrote. New Knowledge then “asked Mr. Watson whether he trusted anyone to set up a super PAC that could receive funding and offered advice on how to sharpen his appeal to disenchanted Republican voters.”

While Watson communicated with the deceptive Facebook page, the New Knowledge operators never revealed their identity, and the page disappeared the day after the vote. “It was weird,” Watson commented to the New York Times. “The whole thing was weird.”

New Knowledge then sought to manufacture a link between Roy Moore’s campaign and the Kremlin by claiming thousands of his Twitter followers were Russian bots. Mainstream media outlets credulously ran with the narrative, insinuating that the Christian theocrat Moore was secretly backed by Russia.

The Montgomery Observer first reported the alleged link: Russian invasion? Roy Moore sees spike in Twitter followers from land of Putin. From there, it was picked up by Mother Jones, whose headline read: Russian Propagandists Are Pushing for Roy Moore to Win. But there was no proof of any Russian connection to the accounts. To bolster its evidence-free claim, Mother Jones simply turned to Hamilton 68, the highly suspect Russian influence monitoring system that Morgan helped design.

Today, as can be seen below, Mother Jones is using a bogus story generated by a disinformation campaign to raise funds for more Russiagate coverage.

As the Russian bot narrative peaked, Moore blamed the Jones campaign for manufacturing the scare. “It’s not surprising that they’d choose the favorite topic of MSNBC and the Fake News outlets — the Russia conspiracy. Democrats can’t win this election on the issues and their desperation is on full display.”

Moore’s opponent, Jones, said he had no knowledge of the operation.

Moore was roundly mocked in liberal circles as a conspiratorial crank, but New Knowledge’s internal report contained a stunning admission: “We orchestrated an elaborate ‘false flag’ operation that planted the idea that the Moore campaign was amplified on social media by a Russian botnet,” its authors revealed.

While the New York Times says the internal report does not confirm that New Knowledge purchased the bot account themselves, the accounts’ flagrant use of Cyrillic language and profile pictures of famous singers including Britney Spears, Christina Aguilera and Avril Lavigne strongly suggest that whoever bought them went to extreme lengths to leave the appearance of a Russian hand.

Roy Moore just picked up a whole bunch of twitter followers. But they ain't from around here, comrade. pic.twitter.com/vJBPVxqWIW

— Matt Mitchell (@ALostrich) October 16, 2017

Disinfo ops to “strengthen American democracy”

The Alabama disinformation campaign was carried out through a network of Silicon Valley tech entrepreneurs and former Obama administration officials who have joined the private sector to leverage liberal anti-Trump outrage into profits.

Billionaire Reid Hoffman, who co-founded the employment networking site LinkedIn, provided $100,000 for the black ops campaign. The money was then pipelined through American Engagement Technologies, which is headed by Mikey Dickerson, a former Google engineer who founded the United State Digital Service. Dickerson is also Executive Director of the New Data Project, an organization dedicated to “testing new approaches” and “serving as an advanced technology research lab for progressives.”

A colleague of Hoffman’s claimed the purpose of his investments was to “strengthen American democracy.”

Since the New York Times’ exposé, Facebook released a statement announcing its suspension of “five accounts run by a multiple individuals for engaging in coordinated inauthentic behavior,” including Morgan’s account. The social media platform has opened an investigation, though it has not revealed what the other pages are or who operated them.

The headline of the New York Times story about the Facebook suspensions appeared to have been crafted to keep the focus on Russia while deflecting scrutiny from the group of Democratic Party-linked hustlers that orchestrated the disinformation operation. It read: “Facebook Closes 5 Accounts Tied to Russia-Like Tactics in Alabama Senate Race.”

For his part, Sen. Jones has demanded an investigation. “I think we’ve all focused too much on just the Russians and not picked up on the fact that some nefarious groups, whether they’re right or left, could take those same playbooks and start interfering with the elections for their own benefit,” he said. “I’d like to see the Federal Election Commission and the Justice Department look at this to see if there were any laws being violated and, if there were, prosecute those responsible.”

Facing an inquiry for possible violations of election laws, Morgan issued a mealy-mouthed statement claiming he “did not participate in any campaign to influence the public and any characterization to the contrary misrepresents the research goals, methods and outcome of the project.”

https://twitter.com/jonathonmorgan/status/1075575821362958337

While the impact of the disinformation campaign on the Alabama senate race may never be quantified, the cynicism behind it is hard to understate. A group of Democratic Party operatives with close ties to the national security state waged a cynical campaign of online deception against the American public, while marketing themselves as the guardians against from foreign interference. Few, if any, Russian hackers could have done as much damage to the already worn fabric of American democracy as they have.

The Year of Putin-Nazi Paranoia

Posted on December 24, 2018 by Reid Mukai

By C. J. Hopkins

Source: Dissident Voice

As my regular readers will probably recall, according to my personal, pseudo-Chinese zodiac, 2017 was “The Year of the Headless Liberal Chicken.” This year, having given it considerable thought, and having consulted the I Ching, and assorted other oracles, I’m designating 2018 “The Year of Putin-Nazi Paranoia.”

Not that 2017 wasn’t already paranoid. It was. It was completely paranoid, and otherwise clinically batshit crazy. But 2018 has been batshit crazier. It started out with the Internet companies that control the flow of information that most of us now perceive as “reality” launching an all-out War on Dissent, purportedly to protect the public from “divisive” and “confusing” content, and other forms of Russian “influencing.”

Twitter started sending out scary emails warning customers that there was “reason to believe” that they had “followed,” “retweeted,” or “liked the content of” accounts “connected to a propaganda effort by a Russian government-linked organization.” Facebook launched its own Ministry of Truth, manned by “a dedicated counter-terrorism team” of “former intelligence and law-enforcement officials” (also known as The Atlantic Council, NATO’s unofficial propaganda wing). Google stepped up its covert deranking of insufficiently Russia-hating and other “non-authoritative” websites.

This Orwellian corporate censorship campaign was enthusiastically welcomed by liberals and other Russia-and-Trump-obsessives, who by this time were already completely convinced that secret Russian Facebook agents were conspiring to transform the Western masses into zombified, Russia-loving neo-Nazis by means of some sort of irresistible Putin-Nazi hypno-technology that would melt their brains to oatmeal the second they clicked on one of those dancing cat GIFs.

But the paranoia was just getting started. By the Spring, professional Putin-Naziologists were issuing warnings explaining that anyone using words like “globalist,” “globalism,” or “global capitalism” was an anti-Semite. There was no such thing as “globalism,” they told us. “Globalist” was just Nazi codespeak for “JEW!” Moreover, anyone criticizing “the media,” or mentioning “banks,” “Wall Street,” or “Hollywood,” or, God help you, making fun of “George Soros,” was clearly a Russia-loving, Sieg-heiling Nazi.

Meanwhile, in London, Blairites were busy combing through six year-old Facebook posts in an effort to prove that Jeremy Corbyn had transformed the British Labour Party into his personal Putin-Nazi death cult. The Guardianpublished over one hundred articles smearing Corbyn as an anti-Semite and “linking” Labour to anti-Semitism. The BBC jacked up the Russia paranoia, doctoring Corbyn’s hat on TV to make it appear more insidiously Slavic. Owen Jones sprang to Corbyn’s defense, explaining that, yes, the Labour Party was a disgusting hive of anti-Semites, but they were doing their utmost to root out the Nazis, ban all criticism of the IDF, and reverse the mass exodus of Jews from London.

All this was happening in the wake of the notorious Novichok Porridge and Perfume Attacks, allegedly perpetrated by two totally incompetent, pot-smoking, prostitute-banging “assassins” that Putin personally dispatched to Salisbury to miserably fail to take out their target and then waltz around getting photographed by every CCTV camera in Great Britain. According to the corporate media, Putin tried to cover the crimes of these Jason Bourne-like GRU assassins by ordering his network of Putin-Nazi Twitter bots to flood the Internet with disinformation. Sky News captured and mercilessly interrogated one of these alleged “Twitter bots,” who it turned out was just a feisty British pensioner by the name of Ian, or at least that’s what Putin wants us to believe!

Back in America, millions of liberals and other Russia-and-Trump-obsessives were awaiting the Putin-Nazi Apocalypse, which despite the predictions of Resistance pundits had still, by the Summer, failed to materialize. The corporate media were speculating that Putin’s latest “secret scheme” was for Trump to destroy the Atlantic alliance by arriving late for the G7 meeting. Or maybe Putin’s secret scheme was to order Trump to sadistically lock up a bunch of migrants in metal cages, exactly as Obama had done before him … but these were special Nazi cages! And Trump was separating mothers and children, which, as General Michael Hayden reminded us, was more or less exactly the same as Auschwitz! Paul Krugman had apparently lost it, and was running around the offices of The New York Times shrieking that “America as we know it is finished!” Soros had been smuggled back into Europe to single-handedly thwart the Putin-Nazi plot to “dominate the West,” which he planned to do by canceling the Brexit (which Putin had obviously orchestrated) and overthrowing the elected government of Italy (which, according to Soros, was a Putin-Nazi front).

As if that wasn’t paranoia-inducing enough, suddenly, Trump flew off to Helisnki to personally meet with the Devil Himself. The neoliberal establishment went totally apeshit. A columnist for The New York Times predicted that Trump, Putin, Le Pen, the AfD, and other such Nazis were secretly forming something called “the Alliance of Authoritarian and Reactionary States,” and intended to disband the European Union, and NATO, and impose international martial law and start ethnically cleansing the West of migrants. That, or Trump and Putin were simply using the summit as cover to attend some Nazi-equestrian homosexual orgy, which The Times took pains to illustrate by creating a little animated film depicting Trump and Putin as lovers. In any event, Jonathan Chait was certain that Trump had been a “Russian intelligence asset” since at least as early as 1987, and was going to Helsinki to “meet his handler.”

In the wake of the summit, the neoliberal Resistance, like some multi-headed mythical creature in the throes of acute amphetamine psychosis, started spastically jabbering about “treason” and “traitors,” and more or less demanding that Trump be tried, and taken out and shot on the White House lawn. A frenzy of neo-McCarthyism followed. Liberals started accusing people of being “traitorous agents of Trump and Moscow,” and openly calling for a CIA coup, because we were “facing a national security emergency!” A devastating Russian cyber-attack was due to begin at any moment. National Intelligence Director Dan Coats personally assured the Associated Press that the little “Imminent Russia Attack” lights he had on his desk were “blinking red.”

Into this maelstrom of monomania boldly slunk the Charlottesville Nazis, who had resolved to reenact their infamous national white supremacist tikki torch conclave right across the street from the White House this year. The Resistance and Antifa had been promoting this event as the long anticipated Putin-Nazi uprising, and Kristallnacht II, and other such nonsense, so it was a bit of a letdown when only twenty or thirty rather timid Nazis turned up. It felt like maybe the Great Nazi Panic of 2018 was finally over.

But no, of course, it wasn’t over. The Nazis had just gone underground. Weeks later, right there on national television, a Jewish-Mexican-American Nazi was spotted transmitting secret Nazi hand signals to her Nazi co-conspirators. One of them, a U.S. Coast Guard member, then relayed the secret Nazi signal to … well, it wasn’t entirely clear, perhaps the Underground Putin-Nazi Navy, which was steaming toward the Florida coast hidden in the eye of Hurricane Florence.

By the Autumn, with the midterm elections fast approaching, the Putin-Nazi terrorists finally struck. It soon became clear that those secret hand signs were just parts of a much larger Trumpian conspiracy to “embolden” a couple of totally psychotic wackos to unleash their hatred on the public. Wacko Number One accomplished this by mailing a series of non-exploding explosive devices to various prominent members of the neoliberal Resistance. Wacko Number Two stormed into a synagogue in Pittsburgh and murdered a lot of people. While the corporate media were unable to prove that Trump, Putin, or possibly Jeremy Corbyn, had personally “emboldened” these wackos, clearly, they had been “emboldened” by somebody, and thus were definitely domestic Putin-Nazi “terrorists,” and not just mentally disturbed individuals … like all the other mentally-disturbed individuals who go around murdering people all the time.

In November, at last, the tide began to turn. Despite the relentless “chaos campaign to undermine faith in American democracy” that the Russian bots and Nazis were waging, the Democrats managed to win back the House and rescue America from “the brink of fascism.” Apparently, the War on Dissent was working, because the millions of Black people that the Russians had brainwashed into not voting for Clinton in 2016 with those Jesus-doesn’t-like-masturbation memes had all miraculously been deprogrammed.

Liberals celebrated by singing hymns to Special Prosecutor Robert Muellerand compiling lists of people to subpoena to testify before congressional committees in what will someday be known as “the Hitlergate Hearings.” The New York Times even published a “roadmap” that Mueller and his team can follow to “send incriminating evidence directly to Congress,” thus protecting this “evidence” from the Justice Department, which is totally infested with Russians and Nazis!

But it’s not quite time for liberals to break out the vuvuzelas and Trump effigies yet … or to let up on the paranoia. The Putin-Nazi menace is still out there! The Internet is still literally crawling with all sorts of deviant, division sowing content! And now the Russian bots have brainwashed the French into staging these unruly Yellow Vest protests, and the Putin-Nazis have “weaponized” humor, and the economy, and religion, and Brexit, and Wikileaks, and pretty much everything else you can imagine. So this is no time to switch off the television, and log off the Internet, and start thinking critically … or to forget for one moment that THE NAZIS ARE COMING, and that A DEVASTATING RUSSIAN ATTACK IS IMMINENT!

So here’s wishing my Russia-and-Trump-obsessed readers a merry, teeth-clenching, anus-puckering Christmas and a somewhat mentally-healthier New Year! Me, I’m looking forward to discovering how batshit crazy things can get … I have a feeling we ain’t seen nothing yet.

C. J. Hopkins is an award-winning American playwright, novelist and satirist based in Berlin. His plays are published by Bloomsbury Publishing (UK) and Broadway Play Publishing (USA). His debut novel, ZONE 23, is published by Snoggsworthy, Swaine & Cormorant. He can reached at cjhopkins.com or consentfactory.org Read other articles by C. J..

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After the Crash

Dispatches From a Long Recovery (Est. 10/2024)

Tag Archives: Neoliberalism

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