Posts Tagged ‘United States’

THE WORLD TODAY – HIT OR BUST

October 1, 2008

George Barnsby, Oct 1, 2008

I’ve been accused in the past of neglecting the dire financial
position that has been developing for some years now. This is because I regard the blind monster of Capitalism uncontrollable, moving one day favourably and the next day unfavourably, but always with two main defects.

Its tendency to move in slumps and booms and its tendency to produce unacceptable wealth at one end of the scale and poverty and starvation at the other. Thus I believe with Marx and Lenin that the only thing to do with capitalism is to destroy it and this Communists attempted to do in the last century but world imperialism was too strong for it. The Soviet Union was destroyed by a coup against Gorbachev a particularly horrible form of capitalism was introduced which impoverished the working people of Russia and its wealth given to oligarchs who usually moved abroad to escape the righteous wrath of the Russian people. All this has resulted in the present financial scandal where the very existence of capitalism is at stake and the only possible solution is Socialism which has revived in South America under Hugo Chaves, Evo Morales, an indigenous leader and others who are able to challenge US capitalism which could be in the process of disintegrating.

One of the bitterest critics of Bush and his Neo-Cons. has been the
film maker Michael Moore and, as I explain to my critics, I am not in a position to pronounce on the seriousness of the position in the US, but Moore is and last night I wrote a long piece which criticised the Democratic Party saying that they handed an election to Bush which he had not won; that they gave him the votes to invade Iraq and now have been cowered into accepting the crime of the century which he believes is paying the 700 billion dollar bail out American capitalism.

But tomorrow is another day and what these masters of the world did not realise was that the American people had decided that it was time to revolt.

Millions of phone calls and emails hit Congressmen telling them to oppose the crime of the century and allow bankers and monopoly business men 700 billion dollars paid for by ordinary people who also risked losing their homes because they couldn’t pay their mortgages. So the right wing of the Republican Party joined with the left-wing of the Democratic Party 228 votes to 205 to stop the thievery. The Democrats who voted for the give-away were influenced by the fact that their stock based pensions are retirement funds would be at risk if they didn’t give the rich their handouts. But this indeed happened as the Dow Jones showed the largest, single-day drop in the history of the New York Stock Exchange. Americans lost 1.2 trillion dollars in the stock market. Its a financial Pearl Harbour! The sky is falling! And as we all go to bed, we don’t know what else Capitalism will throw at us tomorrow and how much more nationalisation and other Socialist measures will be forced on Democrats and reluctant Republicans alike.

Michael promises to give his solutions tomorrow, so don’t fail to log on to MMFlint@aol.com for the latest news.

Bailout Vote Underscores US Leadership Crisis

October 1, 2008

by: Steven Thomma, McClatchy Newspapers

photo
The bailout deadlock demonstrates that no definitive leadership exists in Washington – least of all in the White House. (Photo: Ezra Shaw / Getty Images AsiaPac)

Columbus, Ohio – The failure of a proposed Wall Street bailout Monday underscored that America is suffering not just from a financial crisis, but also from a crisis of political leadership.

“This has been a bad day for Washington and a bad day for American politics,” said Harold Ford, a former Democratic congressman from Tennessee. “What happened today was an embarrassment for the country.”

None of the country’s political leaders, Republican or Democrat, has proved able to navigate the treacherous politics of the moment and secure an agreement to bail out the country’s financial system and restore confidence in the marketplace.

President Bush is a largely discredited lame duck. He’s not trusted by his own party and was unable to bend the Congress to his will even as he warned of a catastrophe if lawmakers rebelled.

Democratic presidential nominee Barack Obama and his party’s congressional leaders control the Congress and agreed with Bush’s urgency, but they couldn’t deliver a majority, either.

Still, they came closer than did Republican John McCain and his party’s leaders in the House of Representatives, who delivered only 30 percent of the GOP votes for the compromise, while Democrats delivered some 60 percent of their members.

Leaders of both parties vowed to seek bipartisan cooperation toward drafting a compromise that could pass, but with their own elections five weeks away, they couldn’t stop themselves from partisan attacks, which make the goal of bipartisan agreement even more difficult to reach.

Nowhere is the crisis more evident than it is in the White House.

Bush limps toward the end of his second term with among the lowest job-approval ratings in history – a recent Gallup poll found just 27 percent approving and 69 percent disapproving.

Worse, he’s lost credibility in Congress, notably for leading the country into war in Iraq on false claims that Iraq had ties to al Qaida and weapons of mass destruction. When he dispatched Vice President Dick Cheney to lobby House Republicans to support the Wall Street bailout, the closed-door session grew heated, and some members reportedly reminded Cheney that they’d trusted him on Iraq.

Bush also is paying a price for years of strong-arming Congress, particularly when he counted on then-House Majority Leader Tom DeLay, R-Texas, to “hammer” proposals such as a costly expansion of Medicare past skeptical conservatives.

“There’s no question the rank-and-file are carrying some grudges from the past,” said Dan Schnur, the director of the Unruh Institute of Politics at the University of Southern California.

Democrats, who won control of both the House and Senate in 2006, also couldn’t deliver. Congress’s approval rating is even lower than Bush’s, at around 18 percent.

When Obama, the party’s new leader, learned of the plan’s rejection, he spoke about Washington almost as if he weren’t a member of Congress.

“Democrats and Republicans in Washington have a responsibility to make sure that an emergency rescue package is put forward that can at least stop the immediate problems we have so we can begin to plan for the future,” he said.

He didn’t say how he might lead or what role he’d play. “Step up to the plate,” he told Congress. “Get it done.”

His party’s leaders in Congress also threw up their hands, as House Speaker Rep. Nancy Pelosi, D-Calif., and others bragged that they’d delivered a majority of the Democratic votes, even though that wasn’t enough.

“The Democratic side more than lived up to its side of the bargain,” Pelosi said, lauding fellow Democratic leaders for “getting 60 percent of the House Democrats to support a bill which isn’t our bill.”

Republican leaders in Congress were powerless as well to deliver the votes they’d promised, saying that they lost about 12 committed votes when some of their members got mad at Pelosi.

“We could have gotten there today had it not been for this partisan speech that the speaker gave on the floor of the House,” said House Republican Leader Rep. John Boehner, R-Ohio.

McCain appeared as impotent as everyone else. He’d suspended his campaign briefly last week to rally support for the plan, and spent part of Saturday lobbying House Republicans by phone, but he couldn’t deliver, either.

Why not a bailout for the rest of us?

October 1, 2008

What’s really required in this crisis is an entirely different kind of government intervention in the economy.

Quickly organized protests around the U.S. drew opponents of the bailout for Wall Street (Joe Newman)Quickly organized protests around the U.S. drew opponents of the bailout for Wall Street (Joe Newman)

AS THE smoke cleared after Monday’s stunning House of Representatives vote against a $700 billion financial bailout for Wall Street, the politicians immediately got down to the business of blaming each other–and scheming about the next attempt to push through this rescue of the super-rich.

But for working people trying to figure out what the hell has happened to the U.S. financial system–and why the leaders of the U.S. government, apparently regardless of political party, are prepared to spend more than $2,000 for every man, woman and child in this country to save Wall Street–the reaction was different.

For one thing, there was sweet satisfaction to be taken in the fact that the bankers and stockbrokers didn’t get their way for once–especially since they’re out to steal $700 billion in taxpayers’ money to cover their bad investments, under a program devised by former Wall Street CEO and now Treasury Secretary Henry Paulson.

With the business world ratcheting up political pressure and Paulson predicting certain doom if no action was taken, the Bush administration and the leadership of both parties in both the House and Senate were all sure that the bailout bill would go through. Yet the legislation was derailed because members of Congress are feeling the heat from a growing popular outrage over the staggering scale of a giveaway to the very same people who led the economy to the edge of the abyss.

It was an all-too-rare turn of events for the U.S. political system–the opinions of ordinary Americans actually mattered in what happened.

At the same time, though, there’s a sense of foreboding. If the government can’t agree on a bailout, will Wall Street really crash and burn–and cause an economic catastrophe on Main Street, too?

After all, that’s the claim of “King Henry” Paulson and his nominal boss, George W. Bush. They’re basically extortionists, insisting that if Congress doesn’t agree to a king’s ransom for the banks, the economy gets it–in the form of a worldwide financial meltdown that would wipe out workers’ savings and eliminate millions of jobs overnight.

The stock market plunge that followed the House vote Monday will have reinforced such fears. Few workers have the resources to play the stock market, of course, but their lives are affected by its ups and downs, especially the downs–for example, the loss of retirement savings in 401(k) accounts that many workers rely on, now that defined benefit pension plans are going the way of the dinosaur.

So is it true? Are we all–the multi-millionaire bankers on Wall Street and the tens of millions of workers on every other street–in the same boat after all? Do we really need the Paulson bailout to avert a second Great Depression?

The answer is no.

The argument that a bailout of the banks is good of all us is an ideological smokescreen, to cover the specifics of the Paulson proposal, as sanctioned by the Democrats–which benefits the rich and powerful, at the expense of the rest of us.

There are plenty of ways that government intervention could alleviate the financial crisis and provide urgently needed relief to working people. But that would involve programs, policies and priorities that the bankers despise–and that political leaders in Washington want nothing to do with.

Paulson is right to say that Wall Street is facing its most severe crisis since the Great Depression–a catastrophe entirely of its own making–and that the U.S. government has to respond. But the form that response takes–a huge handout for the super-rich or a progressive plan to rein in the banks and help ordinary people–depends on whether workers organize to make their voices heard and felt in Washington.

Continued . . .

The Rise Of The American Oligarch Class

September 30, 2008

The Paulson Plan

Robert Wenzel | Information Clearing House, Sep 29, 2008

The word oligarchy dates back at least to the time of Aristotle and comes from the Greek words for “few” (λίγον olígon) and “rule” (ρχω arkho). An oligarchy is generally considered any form of government where a small elite segment of society, be they from royalty, wealth, family or military, rule. The most current day popular meaning associates an oligarch with an extremely wealthy person who acquires his wealth, or increases it significantly, by incorporating the use of government influence. Oligarchs are not the only ones who become rich, but their success and secretive influence over governments put them into a separate class.

A recent example of a major grab of power and wealth in this type of oligarch fashion comes from the period of the collapse of the Soviet Union. In the confusion during the collapse, and the rise of Boris Yeltsin as president of Russia, the oligarchs made their move. With relatives or close associates as government officials, sometimes even government officials themselves, they achieved vast wealth by acquiring state assets very cheaply during the so-called “privatization” process controlled by the Yeltsin government.

The current $700 billion Paulson bailout plan has brought to the forefront a new class of what must be called American Oligarchs and oligarch wannabes. Some may have originally earned their wealth by supplying consumers with desired goods, but at some point they crossed over to the dark side to use government as a vehicle to take from the poor and the middle class to give to themselves. Others, never produced an honest product and have been career long parasites on the working classes.

It is instructive that outside of this small group of oligarchs and wannabe oligarchs, few appear to have been in favor of the Paulson “bailout”. (Note: The use of the word “bailout” to describe the Paulson Plan is a misnomer, see my column: THE BIG LIE: The Supposed Paulson ‘Bailout’ Plan).

A letter circulated and signed by many academic economists was sent to Congressional leaders objecting to the plan. The Austrian economists, who are the only ones who understand the business cycle, as would be expected also objected to the plan (See Rockwell: Stop the Bailout and Murphy: The Government Is Not Promoting Stability ).

Even some bankers have objected:

U.S. Treasury Secretary Henry Paulson’s proposed $700 billion bank rescue aims to help “poorly run” companies and the primary beneficiaries would be Goldman Sachs Group Inc. and Morgan Stanley, said BB&T Corp. Chief Executive Officer John Allison in a critique of the plan.

Treasury “is totally dominated by Wall Street investment bankers” and “cannot be relied on to objectively assess” the impact of government policy on the financial industry, Allison wrote in a Sept. 23 letter to Congress…

Allison, 60, said Congress should “hear from well-run financial institutions” as lawmakers consider the plan, which seeks to ease the credit crunch by buying troubled mortgage- related assets. Under Allison, Winston-Salem, North Carolina- based BB&T avoided the subprime mortgage market, whose collapse led to the credit crisis. BB&T has risen 26 percent this year, the best showing in the 24-company KBW Bank Index.

From the right, Newt Gingrich has called the plan “stupid.” From the left, Paul Krugman opposed the plan, calling it “Cash for trash.”

Most noteworthy is the fact that the notoriously pro-Bush FOX television network carried this AP report:

There is scant public support for President Bush’s $700 billion federal rescue plan for the U.S. financial industry and little expectation it would solve the crisis that has roiled the markets and hobbled some of the country’s largest investment firms, according to a poll released Friday.

Just 30 percent of Americans say they support Bush’s package, according to an Associated Press-Knowledge Networks poll released as White House and congressional leaders struggled to rescue the plan after House Republicans rebelled against it. Despite the president’s pleas that the package is urgently needed to prevent an economic meltdown, 45 percent say they oppose Bush’s proposal while 25 percent said they are undecided.

Yet, despite the extremely limited support for the plan, the Oligarchs prevailed and Paulson’s Plan will become law. Indeed, the Oligarchs were out in full force to support the legislation. As I have pointed out before, Paulson with his Goldman Sachs connections must be considered an oligarch, but there are others.

Billionaire David Rubenstein, co-founder of the politically connected Carlyle Group, has come out in favor of Paulson’s Plan. Rubenstein told CNBC that he hopes Congress will move quickly to approve the rescue of the U.S. financial system.

Carlyle Group almost has too many ways to benifit from Paulson’s Plan to count. They ran a mortgage securities firm that went under. Those securities will be coming up for sale under a reorganization, just in time for purchase by the Treasury.

The Federal Reserve has changed regulations which will allow them to buy larger stakes in bank stocks. And Rubenstein wants to buy some of the paper the Treasury acquires. “Private equity can help by buying these assets,” he told CNBC. “Private equity can be among the most significant buyers of assets.”

Billionaire Warren Buffett is in favor of the plan, and he just bought, through Berkshire Hathaway, a $5 billion stake in Goldman Sachs. Goldman Sachs just received approval from the Fed to become a bank holding company, so that they can buy up troubled banks (And then sell the troubled mortgages of the banks to the Treasury?). Buffett called Paulson’s plan “absolutely necessary” and said that “I am betting on the Congress doing the right thing for the American public and passing this bill,”

Billionaire Wilbur Ross , through a firm controlled by Ross, bid $435 million last September to buy the service unit of American Home Mortgage, which collects payments from homeowners. He is in favor of Paulson’s Plan and penned a column published at the New York Post to say so, “…we need this passed, and passed quickly…,”wrote Ross.

There are likely other oligarchs who maintain a low profile and keep their names out of the headlines, and there are oligarch wannabes like former New York City Mayor Rudy Giuliani . Giuliani has put out a press release advising that his firm has formed a “task force” to “guide financial institutions, private investment funds, institutional investors and other market participants through the legislative, regulatory and enforcement challenges posed by the” Paulson Plan.

Clearly, the new oligarchs have arrived in America. It will mean a lower standard of living for the rest of us as it is clear by the Paulson Plan that they are not afraid to think big when grabbing money from the populous at large. Further, they have the political skill and influence to get the legislation passed that will benefit themselves even when there is virtually non-existent popular support. Be scared, very scared. The new American Oligarchs now rule financial America and there is no such thing as enough with them. They will be back for another big bite from our wallets and income streams, all too soon.

Update: Word has reached me (HTrpm) that snuck into Paulson’s plan are changes that will make it easier for the Fed to inflate the money supply. So is the play for the Oligarchs to grab the banks, the assets and the mortgages and then inflate the money supply boosting the value of all these assets by trillions, while the rest of us simply get to deal with the price inflation as higher prices at the grocery store, the gas pump and everywhere else?

Robert Wenzel is an economic consultant and Editor & Publisher of EconomicPolicyJournal.com. He can be reached at rw@economicpolicyjournal.com.

Michael Moore: The Rich Are Staging a Coup This Morning

September 30, 2008

by Michael Moore

Friends,

Let me cut to the chase. The biggest robbery in the history of this country is taking place as you read this. Though no guns are being used, 300 million hostages are being taken. Make no mistake about it: After stealing a half trillion dollars to line the pockets of their war-profiteering backers for the past five years, after lining the pockets of their fellow oilmen to the tune of over a hundred billion dollars in just the last two years, Bush and his cronies — who must soon vacate the White House — are looting the U.S. Treasury of every dollar they can grab. They are swiping as much of the silverware as they can on their way out the door.

No matter what they say, no matter how many scare words they use, they are up to their old tricks of creating fear and confusion in order to make and keep themselves and the upper one percent filthy rich. Just read the first four paragraphs of the lead story in last Monday’s New York Times and you can see what the real deal is:

“Even as policy makers worked on details of a $700 billion bailout of the financial industry, Wall Street began looking for ways to profit from it.”Financial firms were lobbying to have all manner of troubled investments covered, not just those related to mortgages.

“At the same time, investment firms were jockeying to oversee all the assets that Treasury plans to take off the books of financial institutions, a role that could earn them hundreds of millions of dollars a year in fees.

“Nobody wants to be left out of Treasury’s proposal to buy up bad assets of financial institutions.”

Unbelievable. Wall Street and its backers created this mess and now they are going to clean up like bandits. Even Rudy Giuliani is lobbying for his firm to be hired (and paid) to “consult” in the bailout.

The problem is, nobody truly knows what this “collapse” is all about. Even Treasury Secretary Paulson admitted he doesn’t know the exact amount that is needed (he just picked the $700 billion number out of his head!). The head of the congressional budget office said he can’t figure it out nor can he explain it to anyone.

And yet, they are screeching about how the end is near! Panic! Recession! The Great Depression! Y2K! Bird flu! Killer bees! We must pass the bailout bill today!! The sky is falling! The sky is falling!

Falling for whom? NOTHING in this “bailout” package will lower the price of the gas you have to put in your car to get to work. NOTHING in this bill will protect you from losing your home. NOTHING in this bill will give you health insurance.

Health insurance? Mike, why are you bringing this up? What’s this got to do with the Wall Street collapse?

It has everything to do with it. This so-called “collapse” was triggered by the massive defaulting and foreclosures going on with people’s home mortgages. Do you know why so many Americans are losing their homes? To hear the Republicans describe it, it’s because too many working class idiots were given mortgages that they really couldn’t afford. Here’s the truth: The number one cause of people declaring bankruptcy is because of medical bills. Let me state this simply: If we had had universal health coverage, this mortgage “crisis” may never have happened.

This bailout’s mission is to protect the obscene amount of wealth that has been accumulated in the last eight years. It’s to protect the top shareholders who own and control corporate America. It’s to make sure their yachts and mansions and “way of life” go uninterrupted while the rest of America suffers and struggles to pay the bills. Let the rich suffer for once. Let them pay for the bailout. We are spending 400 million dollars a day on the war in Iraq. Let them end the war immediately and save us all another half-trillion dollars!

I have to stop writing this and you have to stop reading it. They are staging a financial coup this morning in our country. They are hoping Congress will act fast before they stop to think, before we have a chance to stop them ourselves. So stop reading this and do something — NOW! Here’s what you can do immediately:

1. Call or e-mail Senator Obama. Tell him he does not need to be sitting there trying to help prop up Bush and Cheney and the mess they’ve made. Tell him we know he has the smarts to slow this thing down and figure out what’s the best route to take. Tell him the rich have to pay for whatever help is offered. Use the leverage we have now to insist on a moratorium on home foreclosures, to insist on a move to universal health coverage, and tell him that we the people need to be in charge of the economic decisions that affect our lives, not the barons of Wall Street.

2. Take to the streets. Participate in one of the hundreds of quickly-called demonstrations that are taking place all over the country (especially those near Wall Street and DC).

3. Call your Representative in Congress and your Senators. (click here to find their phone numbers). Tell them what you told Senator Obama.

When you screw up in life, there is hell to pay. Each and every one of you reading this knows that basic lesson and has paid the consequences of your actions at some point. In this great democracy, we cannot let there be one set of rules for the vast majority of hard-working citizens, and another set of rules for the elite, who, when they screw up, are handed one more gift on a silver platter. No more! Not again!

Yours,
Michael Moore
MMFlint@aol.com
MichaelMoore.com

P.S. Having read further the details of this bailout bill, you need to know you are being lied to. They talk about how they will prevent golden parachutes. It says NOTHING about what these executives and fat cats will make in SALARY. According to Rep. Brad Sherman of California, these top managers will continue to receive million-dollar-a-month paychecks under this new bill. There is no direct ownership given to the American people for the money being handed over. Foreign banks and investors will be allowed to receive billion-dollar handouts. A large chunk of this $700 billion is going to be given directly to Chinese and Middle Eastern banks. There is NO guarantee of ever seeing that money again.

P.P.S. From talking to people I know in DC, they say the reason so many Dems are behind this is because Wall Street this weekend put a gun to their heads and said either turn over the $700 billion or the first thing we’ll start blowing up are the pension funds and 401(k)s of your middle class constituents. The Dems are scared they may make good on their threat. But this is not the time to back down or act like the typical Democrat we have witnessed for the last eight years. The Dems handed a stolen election over to Bush. The Dems gave Bush the votes he needed to invade a sovereign country. Once they took over Congress in 2007, they refused to pull the plug on the war. And now they have been cowered into being accomplices in the crime of the century. You have to call them now and say “NO!” If we let them do this, just imagine how hard it will be to get anything good done when President Obama is in the White House. THESE DEMOCRATS ARE ONLY AS STRONG AS THE BACKBONE WE GIVE THEM. CALL CONGRESS NOW.

US approves India nuclear deal

September 28, 2008

The Australian, Sep 28, 2008

THE US House of Representatives has passed a civilian nuclear pact with India that lifts a three decade-old ban on civilian nuclear trade.

The agreement, passed by a 298-117 vote, will now head to the Senate for its vote, but it was unclear if it would be passed before Congress adjourns ahead of the November 4 elections.

Signed by President George W. Bush and Indian Prime Minister Manmohan Singh in July 2005, the deal offers India access to Western technology and cheap atomic energy provided it allows UN nuclear inspections of some of its nuclear facilities.

“The passage of this legislation by the House is another major step forward in achieving the transformation of the US-India relationship,” said Mr Bush, urging Senate now to adopt the Bill.

The deal has faced criticism from opponents who argue that India, which first tested an atomic weapon in 1974, is not a signatory of the nuclear Non-Proliferation Treaty (NPT).

Representative Edward Markey, a senior member of the House Energy and Commerce Committee, denounced the vote, saying in a statement: “This is a terrible Bill that threatens the future of the global nuclear non-proliferation regime.”

He argued during a late night debate yesterday that opposing the Bill did not mean opposing India.

“This is a debate about Iran. This is a debate about North Korea, about Pakistan, about Venezuela, about any other country in the world that harbours the goal of acquiring nuclear weapons,” he said.

House Speaker Nancy Pelosi sought to allay any lasting concerns, saying the legislation would boost US oversight on any US civilian nuclear assistance to the South Asian nation.

She welcomed the vote saying in a statement that the accord “furthers our countries’ strategic relationship while balancing nuclear non-proliferation concerns and India’s growing energy needs.

“The legislation recognises India’s past support for non-proliferation initiatives and strengthens congressional oversight of any future US decision to assist India’s civilian nuclear program.”

New Delhi, which is critically short of energy to fuel its booming economy and its burgeoning population of 1.1 billion people, is looking at investments worth billions of dollars in its power sector.

If the Senate endorses the agreement it would finally end a three decades-old ban on nuclear trade with India imposed after it carried out its first nuclear test in 1974 and refused to sign the NPT.

– AFP

Truth and war mean nothing at the party conferences

September 28, 2008

John Pilger | New Statesman,  25 September 2008

The media turns the other way, or perverts the truth, while an increasingly imperialist United States, with Britain in tow, pursues its expansionist interests

Britain’s political conference season of 2008 will be remembered as The Great Silence. Politicians have come and gone and their mouths have moved in front of large images of themselves, and they often wave at someone. There has been lots of news about each other. Adam Boulton, the political editor of Sky News, and billed as “the husband of Blair aide Anji Hunter”, has published a book of gossip derived from his “unrivalled access to No 10”. His revelation is that Tony Blair’s mouthpiece told lies. The war criminal himself has been absent, but the former mouthpiece has been signing his own book of gossip, and waving. The club is celebrating itself, including all those, Labour and Tory, who gave the war criminal a standing ovation on his last day in parliament and who have yet to vote on, let alone condemn, Britain’s part in the wanton human, social and physical destruction of an entire nation. Instead, there are happy debates such as, “Can hope win?” and, my favourite, “Can foreign policy be a Labour strength?” As Harold Pinter said of unmentionable crimes: “Nothing ever happened. Even while it was happening, it wasn’t happening. It didn’t matter. It was of no interest.”

The Guardian‘s economics editor, Larry Elliott, has written that the Prime Minister “resembles a tragic hero in a Hardy novel: an essentially good man brought down by one error of judgement”. What is this one error of judgement? The bank-rolling of two murderous colonial adventures? No. The unprecedented growth of the British arms industry and the sale of weapons to the poorest countries? No. The replacement of manufacturing and public service by an arcane cult serving the ultra-rich? No. The Prime Minister’s “folly” is “postponing the election last year”. This is the March Hare Factor.

Following the US

Reality can be detected, however, by applying the Orwell Rule and inverting public pronouncements and headlines, such as “Aggressor Russia facing pariah status, US warns”, thereby identifying the correct pariah; or by crossing the invisible boundaries that fix the boundaries of political and media discussion. “When truth is replaced by silence,” said the Soviet dissident Yevgeny Yevtushenko, “the silence is a lie.”

Understanding this silence is critical in a society in which news has become noise. Silence covers the truth that Britain’s political parties have converged and now follow the single-ideology model of the United States. This is different from the political consensus of half a century ago that produced what was known as social democracy. Today’s political union has no principled social democratic premises. Debate has become just another weasel word and principle, like the language of Chaucer, is bygone. That the poor and the state fund the rich is a given, along with the theft of public services, known as privatisation. This was spelt out by Margaret Thatcher but, more importantly, by new Labour’s engineers. In The Blair Revolution: Can New Labour Deliver? Peter Mandelson and Roger Liddle declared Britain’s new “economic strengths” to be its transnational corporations, the “aerospace” industry (weapons) and “the pre-eminence of the City of London”. The rest was to be asset-stripped, including the peculiar British pursuit of selfless public service. Overlaying this was a new social authoritarianism guided by a hypocrisy based on “values”. Mandelson and Liddle demanded “a tough discipline” and a “hardworking majority” and the “proper bringing-up [sic] of children”. And in formally launching his Murdochracy, Blair used “moral” and “morality” 18 times in a speech he gave in Australia as a guest of Rupert Murdoch, who had recently found God.

A “think tank” called Demos exemplified this new order. A founder of Demos, Geoff Mulgan, himself rewarded with a job in one of Blair’s “policy units”, wrote a book called Connexity. “In much of the world today,” he offered, “the most pressing problems on the public agenda are not poverty or material shortage . . . but rather the disorders of freedom: the troubles that result from having too many freedoms that are abused rather than constructively used.” As if celebrating life in another solar system, he wrote: “For the first time ever, most of the world’s most powerful nations do not want to conquer territory.”

That reads, now as it ought to have read then, as dark parody in a world where more than 24,000 children die every day from the effects of poverty and at least a million people lie dead in just one territory conquered by the most powerful nations. However, it serves to remind us of the political “culture” that has so successfully fused traditional liberalism with the lunar branch of western political life and allowed our “too many freedoms” to be taken away as ruthlessly and anonymously as wedding parties in Afghanistan have been obliterated by our bombs.

The product of these organised delusions is rarely acknowledged. The current economic crisis, with its threat to jobs and savings and public services, is the direct consequence of a rampant militarism comparable, in large part, with that of the first half of the last century, when Europe’s most advanced and cultured nation committed genocide. Since the 1990s, America’s military budget has doubled. Like the national debt, it is currently the largest ever. The true figure is not known, because up to 40 per cent is classified “black” – it is hidden. Britain, with a weapons industry second only to the US, has also been militarised. The Iraq invasion has cost $5trn, at least. The 4,500 British troops in Basra almost never leave their base. They are there because the Americans demand it. On 19 September, Robert Gates, the American defence secretary, was in London demanding $20bn from allies like Britain so that the US invasion force in Afghanistan could be increased to 44,000. He said the British force would be increased. It was an order.

In the meantime, an American invasion of Pakistan is under way, secretly authorised by President Bush. The “change” candidate for president, Barack Obama, had already called for an invasion and more aircraft and bombs. The ironies are searing. A Pakistani religious school attacked by American drone missiles, killing 23 people, was set up in the 1980s with CIA backing. It was part of Operation Cyclone, in which the US armed and funded mujahedin groups that became al-Qaeda and the Taliban. The aim was to bring down the Soviet Union. This was achieved; it also brought down the Twin Towers.

War of the world

On 20 September the inevitable response to the latest invasion came with the bombing of the Marriott Hotel in Islamabad. For me, it is reminiscent of President Nixon’s invasion of Cambodia in 1970, which was planned as a diversion from the coming defeat in Vietnam. The result was the rise to power of Pol Pot’s Khmer Rouge. Today, with Taliban guerrillas closing on Kabul and Nato refusing to conduct serious negotiations, defeat in Afghanistan is also coming.

It is a war of the world. In Latin America, the Bush administration is fomenting incipient military coups in Venezuela, Bolivia, and possibly Paraguay, democracies whose governments have opposed Washington’s historic rapacious intervention in its “backyard”. Washington’s “Plan Colombia” is the model for a mostly unreported assault on Mexico. This is the Merida Initiative, which will allow the United States to fund “the war on drugs and organised crime” in Mexico – a cover, as in Colombia, for militarising its closest neighbour and ensuring its “business stability”.

Britain is tied to all these adventures – a British “School of the Americas” is to be built in Wales, where British soldiers will train killers from all corners of the American empire in the name of “global security”.

In Latin America, the Bush government is fomenting incipient military coups in Venezuela, Bolivia and possibly Paraguay

None of this is as potentially dangerous, or more distorted in permitted public discussion, than the war on Russia. Two years ago, Stephen Cohen, professor of Russian Studies at New York University, wrote a landmark essay in the Nation which has now been reprinted in Britain.* He warns of “the gravest threats [posed] by the undeclared Cold War Washington has waged, under both parties, against post-communist Russia during the past 15 years”. He describes a catastrophic “relentless winner-take-all of Russia’s post-1991 weakness”, with two-thirds of the population forced into poverty and life expectancy barely at 59. With most of us in the West unaware, Russia is being encircled by US and Nato bases and missiles in violation of a pledge by the United States not to expand Nato “one inch to the east”. The result, writes Cohen, “is a US-built reverse iron curtain [and] a US denial that Russia has any legitimate national interests outside its own territory, even in ethnically akin former republics such as Ukraine, Belarus and Georgia. [There is even] a presumption that Russia does not have fully sovereignty within its own borders, as expressed by constant US interventions in Moscow’s internal affairs since 1992 . . . the United States is attempting to acquire the nuclear responsibility it could not achieve during the Soviet era.”

This danger has grown rapidly as the American media again presents US-Russian relations as “a duel to the death – perhaps literally”. The liberal Washington Post, says Cohen, “reads like a bygone Pravda on the Potomac”. The same is true in Britain, with the regurgitation of propaganda that Russia was wholly responsible for the war in the Caucasus and must therefore be a “pariah”. Sarah Palin, who may end up US president, says she is ready to attack Russia. The steady beat of this drum has seen Moscow return to its old nuclear alerts. Remember the 1980s, writes Cohen, “when the world faced exceedingly grave Cold War perils, and Mikhail Gorbachev unexpectedly emerged to offer a heretical way out. Is there an American leader today ready to retrieve that missed opportunity?” It is an urgent question that must be asked all over the world by those of us still unafraid to break the lethal silence.

*Stephen Cohen’s article, “The New American Cold War”, is reprinted in full in the current issue of the Spokesman, published by the Bertrand Russell Peace Foundation: http://www.spokesmanbooks.com

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Violations of Sovereignty

September 27, 2008

U.S. Raids on Pakistan

By BRIAN CLOUGHLEY | Counterpunch, Sep 26, 2008

Henry Kissinger was no amateur when it came to illegally bombing and invading countries that he and the evil President Nixon considered did not meet American requirements of unconditional servility, but even he must be intrigued about the latest antics of Washington’s finest. The vice president of the United States, a charmless and despotic bully, and his president, he of the close-set eyeballs and pretensions to dignity, recently excelled themselves in self-delusion concerning their unlawful invasion of Iraq and their fury with nations whose governments fail to toe the Washington line.

In their latest spasm of bizarre fantasy both Bush and Cheney condemned Russia for its military reply to Georgia’s merciless rocketing of South Ossetia and the killing of scores of its citizens. There is no doubt that Russia had been waiting for an opportunity to teach Georgia a lesson for its treatment of Russian-origin inhabitants of the enclave, and when the US-educated, US-supported Georgian president, Mikheil Saakashvili, was so stupid as to send in troops following his slaughter of civilians, the Russians gave them a hiding. In spite of all the training they received over the past five years from US instructors, and the generous amounts of equipment they acquired, they fled the Russian advance. But Washington intends to have Georgia continue as a US-supporting military base area along Russia’s border, and in order to emphasize its anti-Russian stance Washington arranged for NATO to hold a high level meeting in Georgia last week (which, it was claimed, was planned “a long time ago.”).

As usual, rather than trying to engage Russia through diplomacy, Washington chose confrontation. And this is where the funny bit is, because Cheney declared that “We believe in the right of men and women to live without the threat of tyranny, economic blackmail or military invasion or intimidation.”

It is difficult to believe that the man was being serious, but there was no shade of irony in his delivery. He believed what he was saying, while ignoring the fact that the US has manipulated the UN to impose savage sanctions (economic blackmail) on countries that don’t toe the US line. Of even more importance he ignored the fact that only a few days before his pronouncement there had been gross violation of Pakistan’s sovereignty by the US when its troop s crossed Pakistan’s border and killed civilians. The people of North West Frontier Province – the people of Pakistan – suffered “military invasion and intimidation.”

Last month Bush declared that “We insist that Georgia’s sovereignty and territorial integrity be respected” which might have been a fairly good point to make were it not for the fact that he has no respect for the sovereignty or territorial integrity of any country when criminal violation suits his purpose. The illegal cowboy foray into Pakistan was not denied by Washington; it was merely ignored with that degree of would-be-majestic superiority that is the hallmark of colossal colonial arrogance. Associated Press reported that “a spokesman for the US-led coalition in Afghanistan said it had “no information to give” about the alleged operation, while a spokesman for NATO troops denied any involvement. The US embassy in Islamabad declined to comment.” No surprises there.

It doesn’t seem to matter to Americans that the blitz conducted by their troops resulted in the deaths of six women and two children, citizens of Pakistan. There has been no indication of regret or sympathy ; not a shred of remorse for killing children. For how long can the non-American world tolerate this sort of barbaric malevolence? In America it doesn’t matter, because ‘Support Our Troops!’ is the American mantra, especially in election year, and if a US citizen doesn’t wave the flag and say that American troops are wonderful, even when killing kids in Pakistan, then they are regarded as unpatriotic, which is a dreadful crime.

To justify the slaughter the usual highly-placed anonymous US official told the New York Times that “The situation in the tribal areas is not tolerable. We have to be more assertive. Orders have been issued.”

You can hear the Hitlerian resonance in this, straight from Cheney and Bush. It has hideous echoes of “My patience is exhausted,” before Fascist Germany invaded its neighbors – and of the justification that “Befehl ist Befehl” : “an order is an order,” as the Gestapo herded terrified women and children into concentration camps and then to gas chambers. (In fact some of the victims in the Guantanamo Bay concentration camp would welcome death by gassing, it being preferable to the vicious torture they are undergoing.) The American attitude, under Bush, is one of intolerance and macho contempt for any who dare to display independence. “We have to be more assertive” is a chilling declaration of what motivates the Washington administration. It is unlikely to change, irrespective of who is the next president.

President Zardari of Pakistan showed considerable courage last week when he said that “We will not tolerate the violation of our sovereignty and territorial integrity by any power in the name of combating terrorism,” if only because we have learned what happens to presidents and countries who offend the mighty empire. Pakistan has been dumped before by America. It appears that it is important for the moment, but neither sovereignty not diplomacy are of concern to Washington. Pakistan’s government had better be very careful.

Brian Cloughley lives in France. His website is www.briancloughley.com

A version of the above appeared in The Daily Times (Pakistan).

Retired Soldier Now In Fight Against War in Iraq

September 25, 2008

by Bill Sizemore

NORFOLK – For Ann Wright, it’s a badge of honor that Fox News host Bill O’Reilly once cut off her microphone midinterview.

[Retired Col. Ann Wright was one of three U.S. diplomats to resign in protest over the American invasion of Iraq in 2003.]Retired Col. Ann Wright was one of three U.S. diplomats to resign in protest over the American invasion of Iraq in 2003.

“He was questioning my patriotism,” Wright said in an interview this week. “All I had said was that the United States needed to follow the Geneva Conventions in its treatment of prisoners. I said, ‘Bill, I was in the military 29 years and I was a diplomat for 16 years. What have you done for the country?’ “Presumably Wright, 61, won’t have to worry about being cut off when she speaks tonight at the Naro Expanded Cinema about her unlikely odyssey from soldier to diplomat to full-time anti-war activist.

By her own description, hers was a “squeaky clean” life story. She grew up in Bentonville, Ark., where she was a Girl Scout and her father was a banker who gave Sam Walton a loan that helped launch the Wal-Mart empire.

After retiring from the Army as a colonel, she joined the State Department and served in a variety of overseas posts, including reopening the U.S. Embassy in Kabul, Afghanistan, after the 2001 terrorist attacks.

Over the decades, she said, she had often disagreed privately with U.S. policy but kept her mouth shut, believing she could serve best within the system.

“But it all changed when President Bush decided that he would invade and occupy an oil-rich Arab Muslim country that had not attacked the United States,” she said. “It was such a dangerous move for the United States that I felt I could not be a part of it.”

Wright was one of three U.S. diplomats to resign in protest over the American invasion of Iraq in 2003.

Since then she has been arrested 15 times for raising her voice in a public and indelicate manner. Once, after lecturing the Senate Foreign Relations Committee from the gallery, she was sentenced to three days in jail.

Wright has co-written a book, “Dissent: Voices of Conscience,” a collection of profiles of men and women in government who have publicly criticized the Bush administration’s foreign policy.

Appearing with Wright tonight will be Jonathan Hutto, a sailor and co-founder of Appeal for Redress, an organization that encourages active-duty personnel who are against the war in Iraq to speak out.

© 2008 The Virginia Pilot

Will International Law Reach Bush?

September 24, 2008

RINF.INFO, Tuesday, September 23rd, 2008

By Peter Dyer

Q: What do Radovan Karadzic, former French Prime Minister Dominique de Villepin, and George W. Bush have in common? A: Each lives under the slowly growing shadow of a body of international criminal law.

This law is evolving towards the ultimate goal of holding even the most powerful leaders personally accountable for crimes committed by the State.

It is manifested in international agreements and statutes such as the Geneva Conventions, case law, two ad hoc war crimes tribunals (Yugoslavia and Rwanda), and a permanent International Criminal Court.

Radovan Karadzic, former Bosnian Serb President, has been arrested and now awaits trial in The Hague before the International Criminal Tribunal for the former Yugoslavia (I.C.T.Y.) on charges of genocide and crimes against humanity.

Dominique de Villepin is one of 33 French military and political leaders who have recently been accused in a report released by the Rwandan government of arming and advising Hutu leaders in the genocide and crimes against humanity of 1994.

(At the time Rwanda was a French client state and de Villepin was chief aide to French Foreign Minister Alain Juppe. The 500-page report, based on a two-year investigation, accuses both men of crimes including enabling the genocide by violating a United Nations Security Council Arms Embargo against Rwanda.)

George W. Bush in March 2003 ordered “Operation Shock and Awe” (though officially dubbed “Operation: Iraqi Freedom”) – the unprovoked invasion and occupation of Iraq – presenting the world with a clear prima facie case of aggression.

Aggression, in the words of the judgment delivered at the first Nuremberg Trial, is “the supreme international crime” because it unleashes all the other devastation and inhumanity of war.

Personal accountability by state leaders for the crime of aggression – initiating an unprovoked war – is the most profound as well as the most difficult goal of the continuing evolution of international criminal law.

For this reason, and because President Bush is head of the world’s most powerful state, clearly the shadow of the law is at present less ominous to him than to Karadzic or perhaps to de Villepin.

But there is no statute of limitations for any of these crimes. Things change over time, often unpredictably. And the international community has been working steadily towards this difficult goal for decades.

No doubt the work will continue.

Continued . . .