2013 April 13 « Aletho News

Potential Cost Of A Nuclear Accident? So High It’s A Secret!

By Wolfe Richter | Testosterone Pit | March 13, 2013

Catastrophic nuclear accidents, like Chernobyl in 1986 or Fukushima No. 1 in 2011, are very rare, we’re incessantly told, and their probability of occurring infinitesimal. But when they do occur, they get costly. So costly that the French government, when it came up with cost estimates, kept them secret.

But now the report was leaked to the French magazine, Le Journal de Dimanche. Turns out, the upper end of the cost spectrum of an accident at a single reactor at the plant chosen for the study, the plant at Dampierre in the Department of Loiret in north-central France, would amount to over three times the country’s GDP. Financially, France would cease to exist as we know it.

Hence, the need to keep it secret. The study was done in 2007 by the Institute for Radiological Protection and Nuclear Safety (IRSN), a government agency under joint authority of the Ministry of Defense and the Ministry of Environment, Industry, Research, and Health. With over 1,700 employees, it’s France’s “public service expert in nuclear and radiation risks.” This isn’t some overambitious, publicity-hungry think tank.

It evaluated a range of disaster scenarios that might occur at the Dampierre plant. In the best-case scenario, costs came to €760 billion—more than a third of France’s GDP. At the other end of the spectrum: €5.8 trillion! Over three times France’s GDP. A devastating amount. So large that France could not possibly deal with it.

Yet, France gets 75% of its electricity from nuclear power. The entire nuclear sector is controlled by the state, which also owns 85% of EDF, the mega-utility that operates France’s 58 active nuclear reactors spread over 20 plants. So, three weeks ago, the Institute released a more politically correct report for public consumption. It pegged the cost of an accident at €430 billion.

“There was no political smoothening, no pressure,” claimed IRSN Director General Jacques Repussard, but he admitted, “it’s difficult to publish these kinds of numbers.” He said the original report with a price tag of €5.8 trillion was designed to counter the reports that EDF had fabricated, which “very seriously underestimated the costs of the incidents.”

Both reports were authored by IRSN economist Patrick Momal, who struggled to explain away the differences. The new number, €430 billion, was based on a “median case” of radioactive releases, as was the case in Fukushima, he told the JDD, while the calculations of 2007 were based more on what happened at Chernobyl. But then he added that even the low end of the original report, the €760 billion, when updated with the impact on tourism and exports, would jump to €1 trillion.

“One trillion, that’s what Fukushima will ultimately cost,” Repussard said.

Part of the €5.8 trillion would be the “astronomical social costs due to the high number of victims,” the report stated. The region contaminated by cesium 137 would cover much of France and Switzerland, all of Belgium and the Netherlands, and a big part of Germany—an area with 90 million people (map). The costs incurred by farmers, employees, and companies, the environmental damage and healthcare expenses would amount to €4.4 trillion.

“Those are social costs, but the victims may not necessarily be compensated,” the report stated ominously—because there would be no entity in France that could disburse those kinds of amounts.

Closer to the plant, 5 million people would have to be evacuated from an area of 87,000 square kilometers (about 12% of France) and resettled. The soil would have to be decontaminated, and radioactive waste would have to be treated and disposed of. Total cost: €475 billion.

The weather is the big unknown. Yet it’s crucial in any cost calculations. Winds blowing toward populated areas would create the worst-case scenario of €5.8 trillion. Amidst the horrible disaster of Fukushima, Japan was nevertheless lucky in one huge aspect: winds pushed 80% of the radioactive cloud out to sea. If it had swept over Tokyo, the disaster would have been unimaginable. In Chernobyl, winds made the situation worse; they spread the cloud over the Soviet Union.

Yet the study might underestimate the cost for other nuclear power plants. The region around Dampierre has a lower population density than regions around other nuclear power plants. And it rarely has winds that would blow the radioactive cloud in a northerly direction toward Paris. Other nuclear power plants aren’t so fortuitously located.

These incidents have almost no probability of occurring, we’re told. So there are currently 437 active nuclear power reactors and 144 “permanent shutdown reactors” in 31 countries, according to the IAEA, for a total of 581 active and inactive reactors. Of these, four melted down so far—one at Chernobyl and three at Fukushima. Hence, the probability for a meltdown is not infinitesimal. Based on six decades of history, it’s 4 out of 581, or 0.7%. One out of every 145 reactors. Another 67 are under construction, and more are to come….

Decommissioning and dismantling the powerplant at Fukushima and disposing of the radioactive debris has now been estimated to take 40 years. At this point, two years after the accident, very little has been solved. But it has already cost an enormous amount of money. People who weren’t even born at the time of the accident will be handed the tab for it. And the ultimate cost might never be known.

The mayor of Futaba, a ghost town of once upon a time 7,000 souls near Fukushima No. 1, told his staff that evacuees might not be able to return for 30 years. Or never, for the older generation. It was the first estimate of a timeframe. But it all depends on successful decontamination. And that has turned into a vicious corruption scandal. Read…. Corruption At “Decontaminating” Radioactive Towns In Japan.

April 13, 2013 Posted by aletho | Corruption, Deception, Economics, Environmentalism, Nuclear Power, Timeless or most popular | Chernobyl, Chernobyl disaster, France, Fukushima, Institut de radioprotection et de sûreté nucléaire, Nuclear reactor, Soviet Union | Leave a comment

Israel bulldozes Palestinian land near al-Aqsa Mosque

PressTVGlobalNews | April 12, 2013

April 13, 2013 Posted by aletho | Ethnic Cleansing, Racism, Zionism, Illegal Occupation, Timeless or most popular, Video, War Crimes | Palestine, Zionism | 1 Comment

Austerity Economics, Democrat-Style

Obama Does Social Security and Medicare

By ROB URIE | CounterPunch | April 13, 2013

With Barack Obama putting his plan to cut Social Security and Medicare expenditures into writing in his Federal budget proposal the ability of those who voted for him to credibly deny his years of publicly stating he would do so disappeared. The pathetic pleas from liberals and progressives who only a few short months ago were assuring the unwashed masses Mr. Obama was on the cusp of a ‘liberal’ renaissance if only doubters would join them in granting him another term are today as empty as their assurances were then. And Mr. Obama’s self ‘sacrifice’ of voluntarily giving up 5% of his own $400,000 per year salary in solidarity with seniors present and future who will see their Social Security payments reduced calls into question his intelligence if sincere—the difference between the rich (Mr. Obama) voluntarily giving up a fraction of their yacht allowance versus millions of seniors choosing between eating and living indoors is fundamental.

Those whose politics begin and end with rolling off the couch every few years to vote could in theory be forgiven for perceiving a yawning chasm between the Republican and Democrat candidates. Marketing firms were paid a lot of money to create that illusion. And Mr. Obama almost certainly has the political calculus correct that the bourgeois commentariat, a/k/a/ ‘the left,’ will whimper in protest for a few days, weeks at most, before falling in line for Hillary or whatever militaristic, corporatist abomination the Democrats put forward in the next Presidential election. Early reports even have liberal pundits sticking with the line Mr. Obama is only posturing with the proposals, despite his near decade prior explaining why he believes Social Security and Medicare must be cut to be ‘saved.’ However, this is truly a ‘let them eat cake’ moment. Mr. Obama’s policies will needlessly, and in economic terms gratuitously, hurt a lot of people—overwhelmingly those who self-identify as the Democrats’ political ‘base.’ And lest there be confusion over the matter, in his first term Mr. Obama fully restored the fortunes of America’s ruling class at several trillion dollars of public expense before proposing these cuts.

The faux official hand wringing over Social Security is a result of the bi-partisan (‘Washington’) consensus that produced the trajectory of catastrophic public policy over the last forty years. Radically skewed income distribution, the result of public policy, has seen lower and middle-income wages stagnate with all economic gains delivered up to a tiny plutocracy. This has lowered the proportion of total income paid into Social Security because above the current $113,700 cap income is excluded from contribution to the program. Raising the cap would have some effect in reducing expected future shortfalls but would reframe the social insurance nature of the program because payments are also capped. The real solution—where the real money is, lies in shifting economic gains back toward lower and middle class wages. Doing this would raise the proportion of income paid into Social Security. And this leaves aside the fact the Federal Reserve created several trillion dollars ‘out of thin air’ to restore the fortunes of a dysfunctional financial system and its beneficiaries in the plutocracy and could more productively do so to fund the nation’s social insurance programs. In short, the ‘crisis’ facing Social Security and Medicare is one of skewed income distribution resulting from bad public policy and is readily solvable without cutting benefits.

To the argument proposed tax increases on the rich balance ‘sacrifice’ across economic classes, what makes Mr. Obama’s self-imposed wage cut so ludicrous is how radically it understates the degree to which a large and growing proportion of the population has been economically marginalized. It also frames income distribution as an outcome of ‘natural’ processes from which returning some proportion for the benefit of the common weal through taxes is ‘sacrifice.’ (The rich benefit from public expenditure in far greater proportion than the rest of us). About one-third of retirees exist entirely on Social Security payments that are already at bare subsistence levels. These payments constitute the bulk of monthly income for two out of three retirees. Cutting benefits for people who lack other options for obtaining income isn’t ‘sacrifice,’ shared or otherwise—it is immiseration. And Social Security belongs to those who paid into the program throughout their working lives—it is only through radically anti-democratic governance Mr. Obama and Congressional Republicans have say in the matter.

Income distribution data shows top incomes coming from two related sources—finance and finance related and corporate executive compensation. Wall Street—the F.I.R.E. sector (Finance, Insurance and Real Estate), benefited from Wall Street’s resurrection at public expense. Government ‘bailout’ policies were framed as ‘liquidity’ provision when in fact the programs went on far longer and at greater public expense than this explanation supports. In fact, Wall Street was (is) insolvent due to poor and / or fraudulent business practices meaning bankers killed ‘their’ banks, not nature. The resurrection of Wall Street, including paychecks and bonuses, took place entirely on the public dime. And a significant proportion of the rise in corporate earnings used to justify grotesquely disproportionate executive compensation came from cutting wages to labor. The ability of executives to cut wages derives from government policies specifically designed to reduce the power of labor unions and from tax breaks and incentives to shift production to low wage countries. These are no more ‘market’ forces than the bank bailouts were.

The challenge for the bourgeois commentariat is it largely accepts the political economy that produced current circumstance but objects to the outcomes. Explicit austerity economics, of which Mr. Obama’s proposals to cut social insurance programs are a component, receive their provenance from the ‘structural adjustment’ programs the IMF (International Monetary Fund) for decades inflicted on the citizens of other nations for the benefit of Western banks. The neo-liberal premises behind structural adjustment are still taught in university economics departments by ‘liberal’ economists who are leading members of the bourgeois commenting class now critical of austerity. With the aforementioned government policies to concentrate wealth within a tiny plutocracy whilst throwing labor to the wolves in mind, liberal economists defer to ‘market’ forces to explain the income and wealth skews behind the ‘natural’ austerity faced by the bulk of the working populace and then argue explicit austerity policies are ‘unfair’ and / or economically destructive. But why argue over effects when the causes can be addressed?

In the macroeconomic context in which austerity economics is argued the mainstream debate is between Keynesian economists, ‘New’ and old and Austrians. Keynesians argue in circumstances where private demand for goods and services is ‘inadequate’ government spending produces multiples of the money spent in increased economic output. Austrians argue government spending is always and everywhere less productive than private spending and taxes levied to fund government spending take away from private spending. Eighty or so years of evidence strongly favor the Keynesian understanding of how modern economies ‘work,’ but with a caveat. Austrians tend to understand the roles of money and banking in the economy whereas ‘New’ Keynesians remain willfully clueless. This difference plays out in a few ways—private credit expansion has an economic effect similar to public expenditure but it is neither in the public interest nor is it socially neutral in its political-economic effects. And public investment funded with public debt has the power of the printing press behind its repayment whereas private credit doesn’t.

Mr. Obama’s delivery of several trillion dollars of public wealth to the banks in ongoing bailouts was sold as a way to ‘get banks lending again,’ ‘private’ Keynesianism, to raise the quantity of private debt issued to bolster consumption. But wholly reviving insolvent banks has no legitimacy in any economic theory. This is why the bailouts were, and still are, framed as liquidity provision when they are in fact solvency provision. And again, private debt has the political-economic consequence of concentrating wealth and political power in the hands of lenders (Wall Street). Intellectually honest Austrian economists would have let Wall Street die at its own hands in 2008 in favor of a functioning private credit system. ‘New’ Keynesians support public spending to bolster demand when necessary under the (correct) premise the power of the printing press is a tool to serve the public interest. But their ignorance of money and banking leaves them supporting the monetary policies of solvency provision for dysfunctional banks and at utter losses as to why fiscal policies funded by this same printing press are nowhere to be found. To coin a Clintonism, it’s the class warfare stupid!

The difference between the Federal government providing ‘liquidity’ to markets and restoring solvency to insolvent banks is more than a technicality. In the case of liquidity provision the government temporarily floods markets with money to facilitate transactions during bank panics– it is the ability to transact that is restored. In the case of restoring solvency the Federal government both buys bad assets from the banks that through fraud and / or incompetence rendered themselves insolvent and it provides subsidies from which banks can ‘rebuild’ their balance sheets. Both are transfers of public resources to private interests demonstrated by history to be economically destructive.

Without apparent irony, the structural adjustment programs fiscal conservatives look to for intellectual sustenance absolutely reject using public funds to restore dysfunctional banks because dysfunctional banks inevitably bleed the economies that remain dry. Austerity economics, the bases for IMF and World Bank policies, are banker economics designed to assure bank debts are repaid regardless of the economic devastation doing so may cause. For theoretical coherence austerity requires that core banks (Wall Street), the banks for which loans be forcibly repaid by the periphery, be functional and healthy. Having now saved a parasitic and dysfunctional Wall Street at public expense, fiscal conservatives in the U.S., led by Barack Obama, seek to cut public expenditures to pay for the privilege.

If cutting the inflation assumption for Social Security would ‘save’ the program, the purported rationale for doing so, then reversing policies designed to concentrate income and wealth would do far more. But cutting the inflation assumption isn’t intended to ‘save’ the program; it is intended to cut Federal spending in which Social Security plays only an indirect role (why else include it in budget ‘negotiations’?) because it is funded through a dedicated tax, not through Federal spending. This doesn’t mean Mr. Obama isn’t locally sincere (if wrong) in promoting the Hamilton Project (Robert Rubin) line that ‘tweaking’ social insurance programs will ‘save’ them. But here context is important. And the context is public expenditures are being cut to pay for the Wall Street bailout and the economic calamity Wall Street caused. Put another way, if there is no public debt ‘crisis’ (there isn’t) and the temporary increase in public debt was to save Wall Street and undo the damage it did to the economy, why not get the money from Wall Street?

But in fact the money is still going in the other direction. And across Europe the story is remarkably similar—through assuming bank liabilities directly (Ireland), shifting public resources to the banks to ‘save’ them and public expenditure on economic stabilizers and unemployment benefits, formerly fiscally ‘disciplined’ nations are now regularly characterized by the European Central Bank and German Chancellor Angela Merkel as nations of ‘takers’ whose morally bankrupt citizenries ruined their countries with fat public welfare programs that must be cut to restore economic health. To be clear, fiscal issues the European periphery faces came from delivering public resources to Wall Street alone. (Wall Street now includes large European banks).

For the uninitiated, the endgame appears nigh. The seizure of bank deposits in Cyprus to pay for bank losses simply removed the ‘middle men,’ the European Central Bank and the political powers that be in Europe, from transferring wealth from the citizens of Cyprus to Cypriot bankers (and to European banks and U.S. hedge funds). The capitalist media storyline promoted by gullible liberals that ‘Russian mafia’ money was seized is nonsense. By reports European banks and rich Russians had little trouble getting their money out of Cyprus. The deposits being seized are in precise inverse relation to the political-economic power the depositors wield. And across the West policies of economic austerity are being imposed in similar fashion.

Mr. Obama is who he is. But those who voted for him have some explaining to do. I oppose Mr. Obama’s policies and would have likewise vocally, and otherwise, opposed those of Mitt Romney had he ‘won.’ Were this simply a matter of resentment the situation would take care of itself—you are the schmucks who cut your own Social Security and Medicare programs. But if you think this is it, that the worst is over, I humbly suggest that was your view when Mr. Obama won his second term. To those paying attention, the Dodd-Frank legislation being sold as a way to ‘reign-in’ bailed out banks contains ‘Cyprus’ clauses that leave banks (or their creditors, beginning with derivatives counter-parties) no alternative than to seize insured deposits when they need their next inevitable bailout. On the plus side, this will eliminate the time-consuming theater of austerity ‘debates.’ On the minus side, Mr. Obama is exponentially increasing the misery of society’s most vulnerable. But I’m confident he appreciates your support for his policies.

Rob Urie is an artist and political economist in New York.

Who Will Save Social Security and Medicare? (alethonews.wordpress.com)

April 13, 2013 Posted by aletho | Deception, Economics, Progressive Hypocrite, Supremacism, Social Darwinism, Timeless or most popular | Democratic Party, Democrats, International Monetary Fund, Medicare, Obama, Social Security, Wall Street | Leave a comment

Most Homeowners Compensated for Bank Foreclosure Misdeeds will Receive just $300

By Noel Brinkerhoff | AllGov | April 12, 2013

Most homeowners wronged during the foreclosure fiasco will receive only a few hundred dollars in compensation from a settlement reached between the federal government and banks.

About 2.4 million borrowers of the almost 4 million eligible homeowners will receive $300 after lenders gave out misinformation, lost documents and committed other misdeeds.

Two years ago, the Independent Foreclosure Review proclaimed homeowners who suffered “financial injury” could get as much as $125,000.

It now turns out only 1,135 borrowers will see this amount. This small group mostly includes members of the U.S. military who had their homes taken away from them, as well as 53 non-military homeowners who endured foreclosure even though they didn’t default on their loans.

Obama Administration Asks Banks to Regulate Their Own Foreclosure Abuses (alethonews.wordpress.com)

April 13, 2013 Posted by aletho | Civil Liberties, Corruption | Foreclosure, Noel Brinkerhoff, Real estate | Leave a comment

Air Force General who Overturned Sexual Assault Conviction Says Accused was Too Good a Husband and Father to be Guilty

By Noel Brinkerhoff and David Wallechinsky | AllGov | April 12, 2013

Lieutenant General Craig A. Franklin, commander of the Third Air Force in Europe, shocked political leaders in Washington with his decision on February 26 to overturn the sexual assault conviction of a celebrated fighter pilot, saying the defendant was just too good a husband and father to be guilty.

“Letters from Lt Col and Mrs Wilkerson’s family, friends and fellow military members,” wrote Franklin in a letter to his superiors, “painted a consistent picture of a person who adored his wife and 9-year old son, as well as a picture of a long-serving professional Air Force officer…. Some letters were from people who did not personally know the Wilkersons, but wanted to convey their concerns to me about the evidence and the outcome of the case”

When the testimony of Wilkerson and his wife were in conflict, Franklin interpreted this as proof that they had not colluded in creating a cover story.

Wilkerson was convicted by an all-male jury of raping a woman while she slept in his home. He was sentenced to a year in the brig and discharged from the Air Force.

Franklin used his authority to overturn the court’s decision, which allowed the accused to return to active duty.

Members of Congress and advocacy groups have strongly criticized Franklin’s interference with the ruling, with some saying it is yet another sign of how the U.S. military refuses to take sex crimes seriously and punish those responsible.

April 13, 2013 Posted by aletho | Militarism | Aviano Air Base, Sexual assault, US Air Force | Leave a comment

Trans-Pacific Partnership: Free Trade vs. Democracy

By Cliff DuRand | Americas Program | April 12, 2013

As closed-door negotiations concluded in Singapore on the Trans-Pacific Partnership, opposition begins to build in many countries. At the urging of the United States, Canada and Mexico have joined the nine countries in the talks and now Japan has announced it too wants to be part of this new free trade pact of Pacific rim countries, described by its critics as “NAFTA on steroids”.

Going into its 17th round of negotiations, the Obama administration aims to wrap up an agreement by October, hoping to push ratification through the Senate on a fast- track basis. Called Trade Promotion Authority, fast track would mean an up or down vote without amendments or even hearings on the agreement presented to it. It is a profoundly anti-democratic procedure because it shuts down debate.

But from start to end, TPP has been thoroughly anti-democratic. On the first day of the Singapore talks a broad range of civil society organizations issued an open letter to Congress calling for greater transparency in the proceedings. The agreement is being hammered out in secret discussions among trade ministers. Even Senators have been denied a look at its draft provisions.

However, some 600 transnational corporations are in the inner circle. They are writing the rules for trade in their own interests without any democratic input from the people whose lives will be profoundly affected. If adopted, TPP will deny citizens their democratic rights to shape public policies on a host of domestic issues, conceding those decisions to the large corporations.

Some sections have been leaked. They reveal “an agreement that actually formalizes the priority of corporate power over government,” according to Lori Wallach of Public Citizen’s Global Trade Watch. Only 5 of the 29 chapters have to do with trade. Wallach says the rest of the draft “include[s] new rights for the big pharmaceutical companies to expand, to raise medical prices, expand monopoly patents, limits on Internet freedom, penalties for inadvertent noncommercial copying, sending something to a friend. There are the same rules that promote off-shoring of jobs that were in NAFTA that are more robust that literally give privileges and protections if you leave. There is a ban on ‘buy American’ and ‘buy local’ or ‘green’ or sweat-free procurement. There are limits on domestic financial stability regulations. There are limits on imported food safety standards and product standards. There are limits on how we can regulate energy towards a more green future – all of these things are what they call ‘Behind the Borders’ agenda. And the operating clause of TPP is: ‘Each country shall ensure the conformity of its domestic laws, regulations and administrative procedures with these agreements.’”

Global Class War

Free trade is about more than trade. It is about favoring corporations over the democratic rights of citizens and the sovereignty of nations. As the former Director-General of the WTO, Renato Ruggiero, said in 1995, “We are no longer writing the rules of interaction among separate national economies. We are writing the constitution of a single global economy.”# What is being created is a global governance order in which corporations are the citizens, not flesh and blood humans like you and me. With free trade, corporations are making an end run around democracy.

TPP is the latest offensive in a global class war. For nearly 40 years now, since the mid 1970s, corporations have been rolling back the popular gains of the New Deal era and the 1960s. Democracy has been the target of a class war to restore the class power of capital. And there has been weak resistance, at best, by the popular classes. But the stakes have become increasingly clear to more and more. Indeed, on the issue of free trade, there is now a broad public sentiment against this aspect of the corporate offensive.

The US has become the world advocate of “free trade,” promoting it through trade agreements like NAFTA and other bi-lateral agreements as well as through global governance institutions it has sponsored such as IMF, World Bank and WTO. The US has promoted free trade for much the same reason Great Britain promoted it in the 19th century, viz. the economically strongest country in the world benefits from free trade. It is the weaker countries that seek tariff protection for their infant industries, protection from competition with cheaper and higher quality imports. That protection is what enabled the US to industrialize in the last half of the 19th century. But then when the US became economically strong enough to compete regionally and eventually globally, it became an advocate of free trade and demanded that others abandon protectionism.

The justification for free trade rests on the theory of comparative advantage. This is the view that if countries trade free of government impediments, the market will tend to direct each to export that which they can produce most efficiently and import what can be produced more efficiently and thus more cheaply elsewhere. The invisible hand of the market will guide each to specialize in producing what they have a comparative advantage in. Thus a rational production and trading system will emerge that maximizes efficiency.

Free trade agreements like NAFTA were sold to the US public by appealing to consumer’s interest in having access to cheaper goods imported from Mexico. What was deliberately soft-pedaled was their interest as workers in having jobs. Organized labor opposed NAFTA, fearing it would pit US workers in competition with low wage Mexican workers. Independent presidential candidate Ross Perot warned of “a giant sucking sound” as jobs would be off-shored to Mexico.

But the Clinton administration said US exports to Mexico would create new jobs. And so, ignoring opposition from its traditional base in the unions, new Democrat Clinton pushed ratification of NAFTA through the Senate as his first priority. Perot proved to be correct as US companies shifted production to low wage Mexico – until even lower wage Chinese workers were brought into play when China joined WTO. But Clinton was also right as cheaper consumer goods from abroad filled the shelves of Wal-Mart with bargains welcomed by US workers who found their wages reduced. Free trade proved to be a mixed blessing.

Capital Becomes Global

One important point about free trade that is often overlooked is that it is not only about the free, frictionless movement of goods and services across borders, unrestricted by tariffs, quotas and regulations. It assures the free movement of capital, as corporations are freed to invest abroad. The mobility of investment capital is of utmost importance, with profound economic consequences and consequences for democracy.

Unable to find sufficiently profitable venues for investment in the overdeveloped US economy, large corporations have increasingly moved abroad. They sought not just new outlets to sell their commodities, but low wage workforces that would decrease their production costs and thus boost their profits. Frequently that would involve locating different stages of the productive process in different countries so as to take optimal advantage of local conditions. The assembly lines of US industry were disaggregated and disbursed across the globe.

Global assembly lines emerged. These global production chains have become a signature feature of contemporary capitalism. Components may be manufactured in Singapore, transported to China for subassembly and then shipped to Mexico for final assembly before sale in the United States. Although global assembly lines are geographically dispersed, they overcome the limitations of the fixed assembly lines of the Fordist era in that they no longer have to rely on a fixed labor force that can organize itself to effectively claim a share of the surplus they create.

Instead, the global assembly line gives capital the flexibility to seek out the lowest wage workforce and friendliest business environment available anywhere in the world. This has been made possible by the development of a global computerized network of instant communications via satellite. That and the computerization of banking have made money transfers and the movement of capital both easy and instantaneous. The communications network also allows the decentralization of technological development and design. Technicians can work at points distant from the processes of production to which they address themselves. And the entire process can be coordinated by management located anywhere on the globe. The limitations of space and time have been overcome by digital communications and cheap energy for transporting goods to their ultimate consumers.

For such globalized production to be possible, capital must be able to flow freely across national borders and products have to be able to move with minimum friction across those borders, unhampered by tariffs or quotas or non-uniform standards. In other words, there must be free trade for transnational capital to optimize accumulation.#

But transnational corporations also need legal protection of their investments. They need protection from expropriation of their assets, laws and governments that can ensure their property is secure. A crucial part of free trade agreements is protection of what are called investor rights. This involves more than just protection from expropriation, as happens with revolutions. It also involves protection from governmental actions that might reduce the value of their property or potential profits by environmental and health regulations, labor laws or other such measures even though they might be for the public good. What in US law is called “regulatory takings” are seen as tantamount to expropriation.

When such governmental actions do occur, free trade treaties give the foreign corporation the recourse to sue. The suit is not adjudicated in a national court, but by a transnational body of experts operating in secret. States are expected to enforce its decisions on their own nation’s taxpayers and consumers. This favors investor rights (i.e. the interests of transnational corporations) over the democratic rights of a nation.

Super NAFTA

As corporations have globalized, morphing into transnational corporations, they have promoted free trade agreements to get national governments to assist them. But when “investor rights” trump the democratic rights of citizens, the transnational corporations become the real citizens of the emerging global order. TPP is a further step in this direction, making an end run around a number of important issues –banking regulation, extension of patent protection, food inspection, environmental protection, food sovereignty, internet freedom, health care, job creation policies, and more, denying voters the opportunity to decide such matters when they impinge on corporate profit making.

Here are a few of the issues around which opposition to TPP is beginning to emerge.

* Doctors Without Borders (Medecins Sans Frontieres, MSF) is concerned that TPP would “enhance patent and data protections for pharmaceutical companies, dismantle public health safeguards enshrined in international law and obstruct price-lowering generic competition for medicines.” The intellectual property provisions would give pharmaceutical companies prolonged monopoly protection for medicines and delay access to cheaper generic versions. This would have disastrous consequences in poorer countries.

* Internet freedom is also in danger. The Council of Canadians and OpenMedia have warned that the TPP would “criminalize some everyday uses of the Internet,” including music downloads, making no distinction between commercial and non-commercial copyright infringement. The TPP imposes a “three strikes” system for copyright infringement, where three violations would result in the termination of a household’s Internet access.

* Japanese farmers are concerned that TPP will force removal of protections from Japan’s agriculture needed to maintain food sovereignty for the country. They are protesting Japan’s decision to enter into TPP negotiations at all.

* Guaranteed compensation for loss of “expected future profits” from health, labor or environmental regulations.

* Corporate performance requirements are banned.

* Capital mobility is to be guaranteed, preventing capital controls in event of a financial crisis. TPP will require countries to let capital flow in and out without restriction, not allow the banning or regulation of risky investments like derivatives and credit-default swaps and will prevent the formation of much-needed public banks

Democratic sovereignty

Most fundamentally what is at stake with TPP and existing free trade treaties is the sovereignty of nations and the ability of their peoples to make democratic decisions. This is a concern on both the Left and the Right, suggesting the possibility of a broad coalition opposing TPP, bridging our otherwise polarized politics.

A major NBC News-Wall Street Journal poll from September of 2010 revealed that “the impact of trade and outsourcing is one of the only issues on which Americans of different classes, occupations and political persuasions agree,” with 86% saying that outsourcing jobs by U.S. companies to poor countries was “a top cause of our economic woes,” with 69% thinking that “free trade agreements between the United States and other countries cost the U.S. jobs.” Only 17% of Americans in 2010 felt that “free trade agreements” benefit the U.S., compared to 28% in 2007.

Arthur Stamoulis, executive director of Citizen Trade Campaign said: “If they were to negotiate an agreement that put human rights ahead of corporate profit, creating more just and sustainable social policy, the TPP could be a tool for incredible good. But if you look at who has a seat at the table, with the public shut out and more than 600 corporate lobbyists included, there is nothing to indicate that’s the deal we’re going to get.”

The developing opposition to the corporate coup that the TPP represents has the potential to win. It’s about time for the people to win one victory in the corporate class war. Our first chance in this campaign will be over granting fast track Trade Promotion Authority. And that battle will be followed by the fight over Senate approval of TPP itself. This is one that we can win. The stakes are high. The alternatives are democracy or plutocracy.

******

Cliff DuRand is a Research Associate at the Center for Global Justice and a contributor to the CIP Americas Program http://www.cipamericas.org. He is co-author and co-editor of Recreating Democracy in a Globalized State (Clarity Press, 2012). Contact him at global.justice.cliff@gmail.com

For More Information:

Public Citizen’s Global Trade Watch http://www.citizen.org/trade

on TPP http://www.citizen.org/TPP

Citizens Trade Campaign www.citizenstrade.org

A coalition of labor, environmental, religious, family farm, and consumer organizations united in the pursuit of socially and environmentally just trade policies.

It’s Our Economy www.itsoureconomy.us

It’s Our Economy seeks to educate, organize and mobilize Americans to shift the power from concentrated capital to the people. http://itsoureconomy.us/occupy-the-tpp-stop-the-global-corporate-coup/

NAFTA at 20: The New Spin (alethonews.wordpress.com)

April 13, 2013 Posted by aletho | Civil Liberties, Economics, Full Spectrum Dominance | Mexico, NAFTA, North American Free Trade Agreement, Singapore, TPP, Trans-Pacific Strategic Economic Partnership, United States | Leave a comment

Rep. Thomas Massie on the Israel Lobby, foreign agents

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Roosevelt Conspired to Start World War II in Europe

By John Wear – Inconvenient History – January 26, 2019

Establishment historians claim that U.S. President Franklin D. Roosevelt never wanted war and made every reasonable effort to prevent war. This article will show that contrary to what establishment historians claim, Franklin Roosevelt and his administration wanted war and made every effort to instigate World War II in Europe. … continue

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Rep. Thomas Massie on the Israel Lobby, foreign agents

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Roosevelt Conspired to Start World War II in Europe

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