The Age of the Oligarchs
By Robert Parry | Consortium News | April 4, 2014
The chaos in Ukraine can be viewed, in part, as what happens when a collection of “oligarchs” – sometimes competing, sometime collaborating – take control of a society, buying most of the politicians and owning the media. The political/media classes become corrupted by serving their wealthy patrons and society breaks down into warring factions.
In that sense, Ukraine could be a cautionary tale for the United States and other countries that are veering down a similar path toward vast income inequality, with billionaire “oligarchs” using their money to control politicians and to pay for propaganda through media ventures.
Depending on your point of view, there may be “good oligarchs” and “bad oligarchs,” but the concept of oligarchy is antithetical to democracy, a system in which governance is supposed to be driven by the informed consent of the majority with respect for minority rights. Instead, we’re moving toward a competition among oligarchs with the “people” mostly as bystanders to be manipulated one way or the other.
On Wednesday, a 5-4 majority of the U.S. Supreme Court lifted limits on total amounts that an individual can contribute during a campaign cycle, an extension of the 2010 ruling on Citizens United allowing the rich to spend unlimited sums on political advertising. It was another step toward an American oligarchy where politicians, activists and even journalists compete to satisfy one “oligarch” or another.
Regarding political spending, that can mean the energy tycoon Koch Brothers financing the Tea Party or Americans for Prosperity to tear down government regulations of businesses. Or it can mean casino kingpin Sheldon Adelson staging his own “primary” in which Republican hopefuls compete to show who would do the most for Israel. Or – from a liberal perspective – it can be billionaire investor Tom Steyer pressing for action on man-made climate change.
On the Right, there also have been vast investments in propaganda – from books, magazines and newspapers to talk radio, TV and the Internet – by the likes of Rupert Murdoch and Richard Mellon Scaife, an imbalance countered, in only a relatively small way, by a few liberal “oligarchs” who have started their own big-budget Web sites.
And, despite the appearance of a few “left-of-center” U.S. sites, there continues to be a lock-step consensus – across the nation’s media – regarding most international conflicts, such as the recent crises in Syria and Ukraine. In those cases, these liberal “oligarchic” sites are as likely to go with the conventional wisdom as the right-wing “oligarchic” sites.
So, if you want to find critical reporting on U.S. interference in Ukrainian politics or a challenging analysis of U.S. claims about the Syrian chemical weapons attack, you’re not likely to find them at ProPublica, which is backed by ex-subprime mortgage bankers Herbert and Marion Sandler and is edited by well-paid traditional journalists from the mainstream press, like Stephen Engelberg, formerly of the New York Times. Nor at FirstLook.org funded by eBay founder Pierre Omidyar.
Though both ProPublica and FirstLook do some fine work on certain topics – such as the environment and privacy rights, respectively – they haven’t shown much willingness to get in the way of U.S. foreign-policy stampedes as they run out of control. Presumably, that would make their funders nervous and possibly put their larger business interests at risk.
Another new media “oligarch,” Washington Post owner and Amazon founder Jeff Bezos, has shied away from reining in “the neocons who brought us the Iraq War.” He has left neocons like Fred Hiatt and Jackson Diehl in charge of the opinion section of Official Washington’s hometown newspaper. Their positions on Syria and Ukraine have been predictable.
And, of course, other mainstream outlets – like the New York Times, the Daily Beast and the major TV networks – have completely fallen into line behind the conventional wisdom. Most coverage of the Syrian civil war and the Ukraine crisis couldn’t have been more submissive to the U.S. government’s propaganda themes if the stories had been written by Radio Liberty or the CIA.
Anyone looking for journalistic skepticism about the mainstream U.S. narrative on these touchy issues has had to seek out Internet sites like Consortiumnews.com which relies on mostly small donations from readers.
But the broader problem is the debilitating impact on democracy when the political/media process takes on the form of some super-hero movie in which super-human combatants do battle – crashing from building to building – while the regular humans mostly watch as powerless spectators as the chaos unfolds.
The Ukraine Mess
In Ukraine’s case, this process was telescoped in time because of the break-up of the Soviet Union in 1991, which was followed by the triumphal intervention of Western “free-market” advisers who descended on Kiev – as well as Moscow – with self-confident prescriptions of privatization and deregulation.
Very quickly, well-connected operatives were scoring mind-boggling deals as they gained control of lucrative industries and valuable resources at bargain-basement prices. Billionaires were made overnight even as much of the population descended to near starvation levels of poverty and despair.
In Russia, strong-willed nationalist Vladimir Putin emerged to put some brakes on this process, banishing some oligarchs like Boris Berezovsky into exile and jailing others like Mikhail Khordorkovsky. However, in Ukraine, the oligarchs continued buying politicians and finally created a crisis of confidence in government itself.
Though public resentment of political corruption was a driving force in the large protests that set the stage for the overthrow of elected President Viktor Yanukovych on Feb. 22, the manipulation of that popular anger may end up impoverishing Ukrainians even more by entrenching oligarchic control even further.
Not only has the Washington-based International Monetary Fund moved to impose “macroeconomic reforms” that will slash spending on Ukraine’s already scant social programs, but “oligarchs” are moving to take direct control of the government.
For instance, the coup regime in Kiev appointed billionaire steel magnate Serhiy Taruta as governor of the Donetsk region in eastern Ukraine where many ethnic Russians live. Taruta quickly moved to suppress pro-Russian sentiment.
As part of the crackdown, the Kiev regime arrested Pavel Gubarev, who had called himself the “people’s governor.” Mikhail Dobkin, a pro-Yanukovych former regional governor who indicated he would seek the presidency, was arrested on sedition charges.
Governor Taruta also has called for some of the IMF’s more draconian demands to be put off until after political resistance to the new order in Kiev has faded.
“People are concerned with one thing,” Taruta told the Washington Post in a flattering story about his leadership. “If we show we can provide help and support, we will calm the situation down. Three to four months from now is the time to talk about financial reform in Ukraine.”
That would mean delaying the harshest elements of the IMF plan until after the scheduled presidential election on May 25, meaning that the voters will have already gone to the polls before they get a taste of what’s in store for them. By then, they may have another billionaire industrialist, Petro Poroshenko, as their new president. He is now the leading candidate.
According to Forbes magazine, there are now about 1,600 billionaires in the world, worth a total of around $6.6 trillion. The writing seems to be scribbled on the walls of Ukraine as well as the United States and around the globe that we are entering the Age of the Oligarchs.
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Senate Report Shows CIA Agents Used Torture Techniques Not Approved By DOJ Or CIA
By Mike Masnick | Techdirt | April 4, 2014
While the Senate Intelligence Committee has finally started the process of declassifying at least some of the $40 million, 6,300 page report about the CIA’s torture efforts, we’re getting more and more leaks about what’s in the report. Previous leaks showed that the torture program was completely useless and that the CIA simply lied about its effectiveness (in fact, taking information gleaned by others through normal interrogations, and claiming they got it via torture). The latest leak highlights how, despite claims by the CIA’s supporters, that the torture was done in “good faith” and was approved by the DOJ and the CIA, it turns out (of course), that the CIA’s torturers actually went much further than they were approved to go.
CIA officers subjected terror suspects it held after the Sept. 11 attacks to methods that were not approved by either the Justice Department or their own headquarters and illegally detained 26 of the 119 in CIA custody, the Senate Intelligence Committee has concluded in its still-secret report, McClatchy has learned.
The spy agency program’s reliance on brutal and harsh techniques _ much more abusive than previously known _ and its failure to gather valuable information from the detainees, harmed the U.S.’s credibility internationally, according to the committee’s findings in its scathing 6,300 page report on the CIA’s interrogation and detention program.
So, again, we have evidence that the CIA tortured people, did so beyond any actual authority (as sketchy as such an authority might be), got nothing of value from the torture, and then repeatedly lied about the torture and the value of it to Congress and the American public. And… no one is going to jail over this. Well, except for the guy who blew the whistle. In fact, many of those responsible for the torture program are still in positions of power. This is a total disgrace.

USAID Subversion in Latin America Not Limited to Cuba
By Dan Beeton | CEPR Americas Blog | April 4, 2014
A new investigation by the Associated Press into a U.S. Agency for International Development (USAID) project to create a Twitter-style social media network in Cuba has received a lot of attention this week, with the news trending on the actual Twitter for much of the day yesterday when the story broke, and eliciting comment from various members of Congress and other policy makers. The “ZunZuneo” project, which AP reports was “aimed at undermining Cuba’s communist government,” was overseen by USAID’s Office of Transition Initiatives (OTI). AP describes OTI as “a division that was created after the fall of the Soviet Union to promote U.S. interests in quickly changing political environments — without the usual red tape.” Its efforts to undermine the Cuban government are not unusual, however, considering the organization’s track record in other countries in the region.
As CEPR Co-Director Mark Weisbrot described in an interview with radio station KPFA’s “Letters and Politics” yesterday, USAID and OTI in particular have engaged in various efforts to undermine the democratically-elected governments of Venezuela, Bolivia, and Haiti, among others, and such “open societies” could be more likely to be impacted by such activities than Cuba. Declassified U.S. government documents show that USAID’s OTI in Venezuela played a central role in funding and working with groups and individuals following the short-lived 2002 coup d’etat against Hugo Chávez. A key contractor for USAID/OTI in that effort has been Development Alternatives, Inc. (DAI).
More recent State Department cables made public by Wikileaks reveal that USAID/OTI subversion in Venezuela extended into the Obama administration era (until 2010, when funded for OTI in Venezuela appears to have ended), and DAI continued to play an important role. A State Department cable from November 2006 explains the U.S. embassy’s strategy in Venezuela and how USAID/OTI “activities support [the] strategy”:
(S) In August of 2004, Ambassador outlined the country team’s 5 point strategy to guide embassy activities in Venezuela for the period 2004) 2006 (specifically, from the referendum to the 2006 presidential elections). The strategy’s focus is: 1) Strengthening Democratic Institutions, 2) Penetrating Chavez’ Political Base, 3) Dividing Chavismo, 4) Protecting Vital US business, and 5) Isolating Chavez internationally.
Among the ways in which USAID/OTI have supported the strategy is through the funding and training of protest groups. This August 2009 cable cites the head of USAID/OTI contractor DAI’s Venezuela office Eduardo Fernandez as saying, during 2009 protests, that all the protest organizers are DAI grantees:
¶5. (S) Fernandez told DCM Caulfield that he believed the [the Scientific, Penal and Criminal Investigations Corps’] dual objective is to obtain information regarding DAI’s grantees and to cut off their funding. Fernandez said that “the streets are hot,” referring to growing protests against Chavez’s efforts to consolidate power, and “all these people (organizing the protests) are our grantees.” Fernandez has been leading non-partisan training and grant programs since 2004 for DAI in Venezuela.”
The November 2006 cable describes an example of USAID/OTI partners in Venezuela “shut[ting] down [a] city”:
11. (S) CECAVID: This project supported an NGO working with women in the informal sectors of Barquisimeto, the 5th largest city in Venezuela. The training helped them negotiate with city government to provide better working conditions. After initially agreeing to the women’s conditions, the city government reneged and the women shut down the city for 2 days forcing the mayor to return to the bargaining table. This project is now being replicated in another area of Venezuela.
The implications for the current situation in Venezuela are obvious, unless we are to assume that such activities have ended despite the tens of millions of dollars in USAID funds designated for Venezuela, some of it going through organizations such as Freedom House, and the International Republican Institute, some of which also funded groups involved in the 2002 coup (which prominent IRI staff publicly applauded at the time).
The same November 2006 cable notes that one OTI program goal is to bolster international support for the opposition:
…DAI has brought dozens of international leaders to Venezuela, university professors, NGO members, and political leaders to participate in workshops and seminars, who then return to their countries with a better understanding of the Venezuelan reality and as stronger advocates for the Venezuelan opposition.
Many of the thousands of cables originating from the U.S. embassy in Caracas that have been made available by Wikileaks describe regular communication and coordination with prominent opposition leaders and groups. One particular favorite has been the NGO Súmate and its leader Maria Corina Machado, who has made headlines over the past two months for her role in the protest movement. The cables show that Machado historically has taken more extreme positions than some other opposition leaders, and the embassy has at least privately questioned Súmate’s strategy of discrediting Venezuela’s electoral system which in turn has contributed to opposition defeats at the polls (most notably in 2005 when an opposition boycott led to complete Chavista domination of the National Assembly). The current protests are no different; Machado and Leopoldo López launched “La Salida” campaign at the end of January with its stated goal of forcing president Nicolás Maduro from office, and vowing to “create chaos in the streets.”
USAID support for destabilization is no secret to the targeted governments. In September 2008, in the midst of a violent, racist and pro-secessionist campaign against the democratically-elected government of Evo Morales in Bolivia, Morales expelled the U.S. Ambassador, and Venezuela followed suit “in solidarity.” Bolivia would later end all USAID involvement in Bolivia after the agency refused to disclose whom it was funding in the country (Freedom of Information Act requests had been independently filed but were not answered). The U.S. embassy in Bolivia had previously been caught asking Peace Corps volunteers and Fulbright scholars in the country to engage in espionage.
Commenting on the failed USAID/OTI ZunZuneo program in Cuba, House Oversight and Government Reform Chairman Jason Chaffetz (R-UT) commented that, “That is not what USAID should be doing[.] USAID is flying the American flag and should be recognized around the globe as an honest broker of doing good. If they start participating in covert, subversive activities, the credibility of the United States is diminished.”
But USAID’s track record of engaging in subversive activities is a long one, and U.S. credibility as an “honest broker” was lost many years ago.
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‘Phoenix Endorses Religion And Coerces Suspects To Participate In Sectarian Ministry’
Americans United for Separation of Church and State | April 4, 2014
Government officials in Phoenix are violating the law by compelling individuals suspected of prostitution-related offenses to participate in a program administered by religious groups, Americans United for Separation of Church and State says.
In a letter sent today to city officials, attorneys with Americans United assert that the program, Project ROSE, clearly violates the First Amendment. Project ROSE consists of a partnership between Phoenix police, Catholic Charities and a local Christian church.
Those arrested in the city’s twice-yearly sex-work stings are forcibly taken to Bethany Bible Church and escorted into the church in handcuffs. They are then given the option to avoid criminal prosecution by participating in a sectarian program.
“Phoenix is essentially telling criminal suspects that they can go to church or go to jail,” said the Rev. Barry W. Lynn, executive director of Americans United. “The government has absolutely no right to force anyone into a position like that. These suspects shouldn’t be coerced into participating in a program that might not reflect their own beliefs.”
Under the program, suspects must authorize Catholic Charities to enroll them in its Prostitution Diversion Program in a section of the church marked by a sign with a Latin cross, the Project ROSE logo and the words “Prosecutor’s Office.” There, a city prosecutor informs them that if they wish to keep their arrest off the books, they must complete Catholic Charities’ program.
If the suspects don’t agree, a police report is submitted to the Prosecutor’s Office, and they are charged with prostitution. A conviction carries a mandatory sentence of 15 days to six months’ imprisonment, in addition to a fine.
“The city is coercing individuals to participate in religious activities and programs, under pain of criminal prosecution,” reads AU’s letter. “The city is conveying its endorsement of religion generally and Christianity in particular. And the city is using taxpayer money and law-enforcement resources to aid religious institutions.”
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Israeli Government Approves ‘Archaeology Center’ in Palestinian Neighborhood
By Celine Hagbard | IMEMC News | April 05, 2014
The Israeli Ministry of the Interior approved on Friday a plan to demolish a large section of the historic Palestinian neighborhood of Silwan, in East Jerusalem, to construct an archaeological center proposed by a nationalist right-wing ethno-religous organization which aims to expand Jewish settlement on Palestinian land in east Jerusalem.
The people of Silwan have faced colonization efforts for the last dozen years – from approved Israeli government projects that involve demolitions of residents’ homes, to forced evictions from their ancestral homes by armed Israeli settlers who force their way in to the houses and push the Palestinian families into the street.
Numerous forced evictions have been documented by the Silwan Information Center but the Israeli police have refused to take any action against the settlers. Instead, they have, on multiple occasions, forcibly removed the tents of residents who camped out on the street in front of their homes after their homes had been taken over by Jewish settlers.
In the project approved on Friday, the right-wing Israeli settlement organization Elad will run the center, which is set to be constructed across from the ‘Dung Gate’ entrance to the Old City of Jerusalem. Elad also runs the controversial ‘City of David’ Israeli national park nearby, which was also constructed over an alarming number of demolished Palestinian homes in Silwan. This is the only instance in which a private organization has been granted control of a national park in Israel.
Elad’s mission statement is to “strengthen the Jewish connection to Jerusalem, and this in the means of tours, guidance, populating, and publishing material.”
According to the Silwan Information Center, “In practice, Elad feverishly worked to gain ownership of houses and lands in the village and particularly in Wadi Hilweh [in Silwan].”
In its approval of the new project, the Israeli Ministry of the Interior said that, “As a tourist attraction, this will contribute to the development of the city of Jerusalem.” When completed, the multi-level building will take up 16,000 square metres (172,160 square feet).
In response to previous archaeological projects by Elad, the Palestinian Authority’s archaeological and cultural heritage expert stated, “The sort of archaeology being carried out in Jerusalem, specifically in East Jerusalem and the Silwan area, is motivated by hidden agendas and has nothing to do with scientific objectives. It is done secretly, without taking into consideration international standards, and casts great doubts on the objectives of these excavations.”
Journalist Emily Hauser, of the Jewish Daily Forward, wrote last month, after the Israeli government handed over control of the southern part of the Western Wall to Elad, “Elad’s mission sits hand in glove with the larger government goal of tightening control over the entirety of 21st century Jerusalem, making the possibility of sharing the city with a future Palestinian state infeasible.
Jerusalem-based archaeological NGO Emek Shaveh has found that Elad’s decisions about where and how to excavate in the area are rooted in political considerations about establishing an Israeli presence and staying one step ahead of the diplomatic process, with the understanding that “’local and international public opinion will not create pressure against them.’”
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