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The New Challenge to Monsanto

By COLIN TODHUNTER | CounterPunch | May 26, 2015

In a challenge delivered to Monsanto’s headquarters on May 20, 2015, US public interest attorney Steven Druker calls on that corporation to find any inaccurate statements of fact in his new book:  “Altered Genes, Twisted Truth – How the Venture to Genetically Engineer Our Food Has Subverted Science, Corrupted Government, and Systematically Deceived the Public

The thoroughly documented and referenced book exposes the substantial risks of genetically engineered foods and the multiple misrepresentations that have enabled them to permeate world markets.

Druker asserts that if Monsanto cannot prove that his book is essentially erroneous, the world will have a right to regard these controversial foods as unacceptably risky – and to promptly ban them.

‘Altered Genes, Twisted Truth’ was released in March 2015 and is the result of more than 15 years of intensive research and investigation by Druker, who initiated a lawsuit against the US Food and Drug Administration (FDA) that forced it to divulge its files on GM foods.

The book indicates that the commercialisation of GM food in the US was based on a massive fraud. The FDA files revealed that GM foods first achieved commercialisation in 1992 but only because the FDA covered up the extensive warnings of its own scientists about their dangers, lied about the facts and then violated federal food safety law by permitting these foods to be marketed without having been proven safe through standard testing.

If the FDA had heeded its own experts’ advice and publicly acknowledged their warnings that GM foods entailed higher risks than their conventional counterparts, Druker says that the GM food venture would have imploded and never gained traction anywhere.

He also argues that that many well-placed scientists have repeatedly issued misleading statements about GM foods, and so have leading scientific institutions such as the US National Academy of Sciences, the American Association for the Advancement of Science and the UK’s Royal Society.

Druker states that contrary to the claims of biotech advocates, humans have indeed been harmed by consuming the output of genetic engineering. He also explains that laboratory animals have also suffered from eating products of genetic engineering, and well-conducted tests with GM crops have yielded many troubling results, including intestinal abnormalities, liver disturbances, and impaired immune systems.

Druker says: “Contrary to the assertions of its proponents, the massive enterprise to reconfigure the genetic core of the world’s food supply is not based on sound science but on the systematic subversion of science – and it would collapse if subjected to an open airing of the facts.”

Now, in his open letter dated 19 May, Druker challenges Monsanto’s Chief Technology Officer to: “Face Up to the Extensive Evidence Demonstrating that Genetically Engineered Foods Entail Unacceptable Risks and Should Be Promptly Removed from the Market.”

Druker finishes his letter by saying:

“If by July 20th you and your allies have not been able to refute the essential factual accuracy of Altered Genes, Twisted Truth according to the terms set forth above, the world will have a right to assume that it is as sound as the experts who reviewed it have affirmed – and to conclude that GE foods are unacceptably risky and must be banned.

Access the letter in full here.

alteredgenesColin Todhunter is an extensively published independent writer and former social policy researcher based in the UK and India.

May 27, 2015 Posted by | Book Review, Deception, Science and Pseudo-Science, Timeless or most popular | , , , , | Leave a comment

‘Shell Shocked’–Gaza Journalist Chronicles 2014 Assault in New Book

 photo shellshocked_zpsvpiytyzp.jpg

Book description:

Operation Protective Edge, launched in early July 2014, was the third major Israeli assault on the Gaza Strip in six years. It was also the most deadly. By the conclusion of hostilities some seven weeks later, 2,200 of Gaza’s population had been killed, and more than 10,000 injured.

In these pages, journalist Mohammed Omer, a resident of Gaza who lived through the terror of those days with his wife and then three-month-old son, provides a first-hand account of life on-the-ground during Israel’s assault. The images he records in this extraordinary chronicle are a literary equivalent of Goya’s “Disasters of War”: children’s corpses stuffed into vegetable refrigerators, pointlessly because the electricity is off; a family rushing out of their home after a phone call from the Israeli military informs them that the building will be obliterated by an F-16 missile in three minutes; donkeys machine-gunned by Israeli soldiers under instructions to shoot anything that moves; graveyards targeted with shells so that mourners can no longer tell where their relatives are buried; fishing boats ablaze in the harbor.

Throughout this carnage, Omer maintains the cool detachment of the professional journalist, determined to create a precise record of what is occurring in front of him. But between his lines the outrage boils, and we are left to wonder how a society such as Israel, widely-praised in the West as democratic and civilized, can visit such monstrosities on a trapped and helpless population.

302 pages • Paperback ISBN 978-1-939293-92-3 • E-book 978-1-939293-93-0

Available from OR Books

May 9, 2015 Posted by | Book Review, Ethnic Cleansing, Timeless or most popular, War Crimes | , , , | Leave a comment

The Clintons and Their Banker Friends

The Wall Street Connection (1992 to 2016)

By Nomi Prins | TomDispatch | May 7, 2015

[This piece has been adapted and updated by Nomi Prins from chapters 18 and 19 of her book All the Presidents’ Bankers: The Hidden Alliances that Drive American Powerjust out in paperback (Nation Books).]

The past, especially the political past, doesn’t just provide clues to the present. In the realm of the presidency and Wall Street, it provides an ongoing pathway for political-financial relationships and policies that remain a threat to the American economy going forward.

When Hillary Clinton video-announced her bid for the Oval Office, she claimed she wanted to be a “champion” for the American people. Since then, she has attempted to recast herself as a populist and distance herself from some of the policies of her husband. But Bill Clinton did not become president without sharing the friendships, associations, and ideologies of the elite banking sect, nor will Hillary Clinton.  Such relationships run too deep and are too longstanding.

To grasp the dangers that the Big Six banks (JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, and Morgan Stanley) presently pose to the financial stability of our nation and the world, you need to understand their history in Washington, starting with the Clinton years of the 1990s. Alliances established then (not exclusively with Democrats, since bankers are bipartisan by nature) enabled these firms to become as politically powerful as they are today and to exert that power over an unprecedented amount of capital. Rest assured of one thing: their past and present CEOs will prove as critical in backing a Hillary Clinton presidency as they were in enabling her husband’s years in office.

In return, today’s titans of finance and their hordes of lobbyists, more than half of whom held prior positions in the government, exact certain requirements from Washington. They need to know that a safety net or bailout will always be available in times of emergency and that the regulatory road will be open to whatever practices they deem most profitable.

Whatever her populist pitch may be in the 2016 campaign — and she will have one — note that, in all these years, Hillary Clinton has not publicly condemned Wall Street or any individual Wall Street leader.  Though she may, in the heat of that campaign, raise the bad-apples or bad-situation explanation for Wall Street’s role in the financial crisis of 2007-2008, rest assured that she will not point fingers at her friends. She will not chastise the people that pay her hundreds of thousands of dollars a pop to speak or the ones that have long shared the social circles in which she and her husband move. She is an undeniable component of the Clinton political-financial legacy that came to national fruition more than 23 years ago, which is why looking back at the history of the first Clinton presidency is likely to tell you so much about the shape and character of the possible second one.

The 1992 Election and the Rise of Bill Clinton

Challenging President George H.W. Bush, who was seeking a second term, Arkansas Governor Bill Clinton announced he would seek the 1992 Democratic nomination for the presidency on October 2, 1991. The upcoming presidential election would not, however, turn out to alter the path of mergers or White House support for deregulation that was already in play one iota.

First, though, Clinton needed money. A consummate fundraiser in his home state, he cleverly amassed backing and established early alliances with Wall Street. One of his key supporters would later change American banking forever. As Clinton put it, he received “invaluable early support” from Ken Brody, a Goldman Sachs executive seeking to delve into Democratic politics. Brody took Clinton “to a dinner with high-powered New York businesspeople, including Bob Rubin, whose tightly reasoned arguments for a new economic policy,” Clinton later wrote, “made a lasting impression on me.”

The battle for the White House kicked into high gear the following fall. William Schreyer, chairman and CEO of Merrill Lynch, showed his support for Bush by giving the maximum personal contribution to his campaign committee permitted by law: $1,000. But he wanted to do more. So when one of Bush’s fundraisers solicited him to contribute to the Republican National Committee’s nonfederal, or “soft money,” account, Schreyer made a $100,000 donation.

The bankers’ alliances remained divided among the candidates at first, as they considered which man would be best for their own power trajectories, but their donations were plentiful: mortgage and broker company contributions were $1.2 million; 46% to the GOP and 54% to the Democrats. Commercial banks poured in $14.8 million to the 1992 campaigns at a near 50-50 split.

Clinton, like every good Democrat, campaigned publicly against the bankers: “It’s time to end the greed that consumed Wall Street and ruined our S&Ls [Savings and Loans] in the last decade,” he said. But equally, he had no qualms about taking money from the financial sector. In the early months of his campaign, BusinessWeek estimated that he received $2 million of his initial $8.5 million in contributions from New York, under the care of Ken Brody.

“If I had a Ken Brody working for me in every state, I’d be like the Maytag man with nothing to do,” said Rahm Emanuel, who ran Clinton’s nationwide fundraising committee and later became Barack Obama’s chief of staff. Wealthy donors and prospective fundraisers were invited to a select series of intimate meetings with Clinton at the plush Manhattan office of the prestigious private equity firm Blackstone.

Robert Rubin Comes to Washington

Clinton knew that embracing the bankers would help him get things done in Washington, and what he wanted to get done dovetailed nicely with their desires anyway. To facilitate his policies and maintain ties to Wall Street, he selected a man who had been instrumental to his campaign, Robert Rubin, as his economic adviser.

In 1980, Rubin had landed on Goldman Sachs’ management committee alongside fellow Democrat Jon Corzine. A decade later, Rubin and Stephen Friedman were appointed cochairmen of Goldman Sachs. Rubin’s political aspirations met an appropriate opportunity when Clinton captured the White House.

On January 25, 1993, Clinton appointed him as assistant to the president for economic policy. Shortly thereafter, the president created a unique role for his comrade, head of the newly created National Economic Council. “I asked Bob Rubin to take on a new job,” Clinton later wrote, “coordinating economic policy in the White House as Chairman of the National Economic Council, which would operate in much the same way the National Security Council did, bringing all the relevant agencies together to formulate and implement policy… [I]f he could balance all of [Goldman Sachs’] egos and interests, he had a good chance to succeed with the job.” (Ten years later, President George W. Bush gave the same position to Rubin’s old partner, Friedman.)

Back at Goldman, Jon Corzine, co-head of fixed income, and Henry Paulson, co-head of investment banking, were ascending through the ranks. They became co-CEOs when Friedman retired at the end of 1994.

Those two men were the perfect bipartisan duo. Corzine was a staunch Democrat serving on the International Capital Markets Advisory Committee of the Federal Reserve Bank of New York (from 1989 to 1999). He would co-chair a presidential commission for Clinton on capital budgeting between 1997 and 1999, while serving in a key role on the Borrowing Advisory Committee of the Treasury Department. Paulson was a well connected Republican and Harvard graduate who had served on the White House Domestic Council as staff assistant to the president in the Nixon administration.

Bankers Forge Ahead

By May 1995, Rubin was impatiently warning Congress that the Glass-Steagall Act could “conceivably impede safety and soundness by limiting revenue diversification.” Banking deregulation was then inching through Congress. As they had during the previous Bush administration, both the House and Senate Banking Committees had approved separate versions of legislation to repeal Glass-Steagall, the 1933 Act passed by the administration of Franklin Delano Roosevelt that had separated deposit-taking and lending or “commercial” bank activities from speculative or “investment bank” activities, such as securities creation and trading. Conference negotiations had fallen apart, though, and the effort was stalled.

By 1996, however, other industries, representing core clients of the banking sector, were already being deregulated. On February 8, 1996, Clinton signed the Telecom Act, which killed many independent and smaller broadcasting companies by opening a national market for “cross-ownership.” The result was mass mergers in that sector advised by banks.

Deregulation of companies that could transport energy across state lines came next. Before such deregulation, state commissions had regulated companies that owned power plants and transmission lines, which worked together to distribute power. Afterward, these could be divided and effectively traded without uniform regulation or responsibility to regional customers. This would lead to blackouts in California and a slew of energy derivatives, as well as trades at firms such as Enron that used the energy business as a front for fraudulent deals.

The number of mergers and stock and debt issuances ballooned on the back of all the deregulation that eliminated barriers that had kept companies separated. As industries consolidated, they also ramped up their complex transactions and special purpose vehicles (off-balance-sheet, offshore constructions tailored by the banking community to hide the true nature of their debts and shield their profits from taxes). Bankers kicked into overdrive to generate fees and create related deals. Many of these blew up in the early 2000s in a spate of scandals and bankruptcies, causing an earlier millennium recession.

Meanwhile, though, bankers plowed ahead with their advisory services, speculative enterprises, and deregulation pursuits. President Clinton and his team would soon provide them an epic gift, all in the name of U.S. global power and competitiveness. Robert Rubin would steer the White House ship to that goal.

On February 12, 1999, Rubin found a fresh angle to argue on behalf of banking deregulation. He addressed the House Committee on Banking and Financial Services, claiming that, “the problem U.S. financial services firms face abroad is more one of access than lack of competitiveness.”

He was referring to the European banks’ increasing control of distribution channels into the European institutional and retail client base. Unlike U.S. commercial banks, European banks had no restrictions keeping them from buying and teaming up with U.S. or other securities firms and investment banks to create or distribute their products. He did not appear concerned about the destruction caused by sizeable financial bets throughout Europe. The international competitiveness argument allowed him to focus the committee on what needed to be done domestically in the banking sector to remain competitive.

Rubin stressed the necessity of HR 665, the Financial Services Modernization Act of 1999, or the Gramm-Leach-Bliley Act, that was officially introduced on February 10, 1999. He said it took “fundamental actions to modernize our financial system by repealing the Glass-Steagall Act prohibitions on banks affiliating with securities firms and repealing the Bank Holding Company Act prohibitions on insurance underwriting.”

The Gramm-Leach-Bliley Act Marches Forward

On February 24, 1999, in more testimony before the Senate Banking Committee, Rubin pushed for fewer prohibitions on bank affiliates that wanted to perform the same functions as their larger bank holding company, once the different types of financial firms could legally merge. That minor distinction would enable subsidiaries to place all sorts of bets and house all sorts of junk under the false premise that they had the same capital beneath them as their parent. The idea that a subsidiary’s problems can’t taint or destroy the host, or bank holding company, or create “catastrophic” risk, is a myth perpetuated by bankers and political enablers that continues to this day.

Rubin had no qualms with mega-consolidations across multiple service lines. His real problems were those of his banker friends, which lay with the financial modernization bill’s “prohibition on the use of subsidiaries by larger banks.”  The bankers wanted the right to establish off-book subsidiaries where they could hide risks, and profits, as needed.

Again, Rubin decided to use the notion of remaining competitive with foreign banks to make his point. This technicality was “unacceptable to the administration,” he said, not least because “foreign banks underwrite and deal in securities through subsidiaries in the United States, and U.S. banks [already] conduct securities and merchant banking activities abroad through so-called Edge subsidiaries.” Rubin got his way. These off-book, risky, and barely regulated subsidiaries would be at the forefront of the 2008 financial crisis.

On March 1, 1999, Senator Phil Gramm released a final draft of the Financial Services Modernization Act of 1999 and scheduled committee consideration for March 4th. A bevy of excited financial titans who were close to Clinton, including Travelers CEO Sandy Weill, Bank of America CEO, Hugh McColl, and American Express CEO Harvey Golub, called for “swift congressional action.”

The Quintessential Revolving-Door Man

The stock market continued its meteoric rise in anticipation of a banker-friendly conclusion to the legislation that would deregulate their industry. Rising consumer confidence reflected the nation’s fondness for the markets and lack of empathy with the rest of the world’s economic plight. On March 29, 1999, the Dow Jones Industrial Average closed above 10,000 for the first time. Six weeks later, on May 6th,  the Financial Services Modernization Act passed the Senate. It legalized, after the fact, the merger that created the nation’s biggest bank.  Citigroup, the marriage of Citibank and Travelers, had been finalized the previous October.

It was not until that point that one of Glass-Steagall’s main assassins decided to leave Washington. Six days after the bill passed the Senate, on May 12, 1999, Robert Rubin abruptly announced his resignation. As Clinton wrote, “I believed he had been the best and most important treasury secretary since Alexander Hamilton… He had played a decisive role in our efforts to restore economic growth and spread its benefits to more Americans.”

Clinton named Larry Summers to succeed Rubin. Two weeks later, BusinessWeek reported signs of trouble in merger paradise — in the form of a growing rift between John Reed, the former Chairman of Citibank, and Sandy Weill at the new Citigroup. As Reed said, “Co-CEOs are hard.” Perhaps to patch their rift, or simply to take advantage of a political opportunity, the two men enlisted a third person to join their relationship — none other than Robert Rubin.

Rubin’s resignation from Treasury became effective on July 2nd. At that time, he announced, “This almost six and a half years has been all-consuming, and I think it is time for me to go home to New York and to do whatever I’m going to do next.” Rubin became chairman of Citigroup’s executive committee and a member of the newly created “office of the chairman.” His initial annual compensation package was worth around $40 million.  It was more than worth the “hit” he took when he left Goldman for the Treasury post.

Three days after the conference committee endorsed the Gramm-Leach-Bliley bill, Rubin assumed his Citigroup position, joining the institution destined to dominate the financial industry. That very same day, Reed and Weill issued a joint statement praising Washington for “liberating our financial companies from an antiquated regulatory structure,” stating that “this legislation will unleash the creativity of our industry and ensure our global competitiveness.”

On November 4th, the Senate approved the Gramm-Leach-Bliley Act by a vote of 90 to 8.  (The House voted 362–57 in favor.) Critics famously referred to it as the Citigroup Authorization Act.

Mirth abounded in Clinton’s White House. “Today Congress voted to update the rules that have governed financial services since the Great Depression and replace them with a system for the twenty-first century,” Summers said. “This historic legislation will better enable American companies to compete in the new economy.”

But the happiness was misguided. Deregulating the banking industry might have helped the titans of Wall Street but not people on Main Street. The Clinton era epitomized the vast difference between appearance and reality, spin and actuality. As the decade drew to a close, Clinton basked in the glow of a lofty stock market, a budget surplus, and the passage of this key banking “modernization.” It would be revealed in the 2000s that many corporate profits of the 1990s were based on inflated evaluations, manipulation, and fraud. When Clinton left office, the gap between rich and poor was greater than it had been in 1992, and yet the Democrats heralded him as some sort of prosperity hero.

When he resigned in 1997, Robert Reich, Clinton’s labor secretary, said, “America is prospering, but the prosperity is not being widely shared, certainly not as widely shared as it once was… We have made progress in growing the economy. But growing together again must be our central goal in the future.”  Instead, the growth of wealth inequality in the United States accelerated, as the men yielding the most financial power wielded it with increasingly less culpability or restriction. By 2015, that wealth or prosperity gap would stand near historic highs.

The power of the bankers increased dramatically in the wake of the repeal of Glass-Steagall. The Clinton administration had rendered twenty-first-century banking practices similar to those of the pre-1929 crash. But worse. “Modernizing” meant utilizing government-backed depositors’ funds as collateral for the creation and distribution of all types of complex securities and derivatives whose proliferation would be increasingly quick and dangerous.

Eviscerating Glass-Steagall allowed big banks to compete against Europe and also enabled them to go on a rampage: more acquisitions, greater speculation, and more risky products. The big banks used their bloated balance sheets to engage in more complex activity, while counting on customer deposits and loans as capital chips on the global betting table. Bankers used hefty trading profits and wealth to increase lobbying funds and campaign donations, creating an endless circle of influence and mutual reinforcement of boundary-less speculation, endorsed by the White House.

Deposits could be used to garner larger windfalls, just as cheap labor and commodities in developing countries were used to formulate more expensive goods for profit in the upper echelons of the global financial hierarchy. Energy and telecoms proved especially fertile ground for the investment banking fee business (and later for fraud, extensive lawsuits, and bankruptcies). Deregulation greased the wheels of complex financial instruments such as collateralized debt obligations, junk bonds, toxic assets, and unregulated derivatives.

The Glass-Steagall repeal led to unfettered derivatives growth and unstable balance sheets at commercial banks that merged with investment banks and at investment banks that preferred to remain solo but engaged in dodgier practices to remain “competitive.” In conjunction with the tight political-financial alignment and associated collaboration that began with Bush and increased under Clinton, bankers channeled the 1920s, only with more power over an immense and growing pile of global financial assets and increasingly “open” markets. In the process, accountability would evaporate.

Every bank accelerated its hunt for acquisitions and deposits to amass global influence while creating, trading, and distributing increasingly convoluted securities and derivatives. These practices would foster the kind of shaky, interconnected, and opaque financial environment that provided the backdrop and conditions leading up to the financial meltdown of 2008.

The Realities of 2016

Hillary Clinton is, of course, not her husband. But her access to his past banker alliances, amplified by the ones that she has formed herself, makes her more of a friend than an adversary to the banking industry.  In her brief 2008 candidacy, all four of the New York-based Big Six banks ranked among her top 10 corporate donors. They have also contributed to the Clinton Foundation. She needs them to win, just as both Barack Obama and Bill Clinton did. 

No matter what spin is used for campaigning purposes, the idea that a critical distance can be maintained between the White House and Wall Street is naïve given the multiple channels of money and favors that flow between the two.  It is even more improbable, given the history of connections that Hillary Clinton has established through her associations with key bank leaders in the early 1990s, during her time as a senator from New York, and given their contributions to the Clinton foundation while she was secretary of state. At some level, the situation couldn’t be less complicated: her path aligns with that of the country’s most powerful bankers. If she becomes president, that will remain the case.

Nomi Prins is the author of six books, a speaker, and a distinguished senior fellow at the non-partisan public policy institute Demos. Her most recent book, All the Presidents’ Bankers: The Hidden Alliances that Drive American Power (Nation Books) has just been released in paperback and this piece is adapted and updated from it. She is a former Wall Street executive.

Copyright 2015 Nomi Prins

May 7, 2015 Posted by | Book Review, Corruption, Economics, Progressive Hypocrite | , , , , , , , , | Leave a comment

Finance Capital and Debt Through the Ages

By Michael Hudson • Unz Review • April 19, 2015

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Karl: Welcome to the Renegade Economists with your host, Karl Fitzgerald. This week we’re stepping back in time, way back some 10,000 years BC into the world of archaeology, Egyptology and Assyriology. Yes, it’s time for another special with Professor Michael Hudson. That’s right, Michael Hudson back on the show, he’s got a new book called Labor in the Ancient World and I asked him to give us a bit of a précis on the background to his very interesting process. Hang on for another riveting conversation here on 3CR’s Renegade Economists.

Michael Hudson: It’s a symposium of a group put together at Harvard University of the leading Assyriologists and Egyptologists and Mycenaean Greek specialists as well as archaeologists on how early societies mobilised the labour force, especially for large public building projects such as temples, city walls and other infrastructure.

Karl: And this is published through whom?

Michael: It’ll be published by ISLET, the Institute for the Study of Long-term Economic Trends. We just finished the type setting actually today and we’re sending it to Amazon to be put on their list, it’ll probably be available in about two weeks.

Karl: “Labor in the Ancient World.”

Michael: Yes.

Karl: And does that have some sort of Harvard connection?

Michael: We founded this project over 20 years ago at the Peabody Museum, which is their archaeology and anthropology department. We wanted to do a series of books on how modern economies and practices began. Our first colloquium was in 1994 on Privatization in the Ancient Near East and Classical Antiquity; our second volume was on Urbanization and Landownership in the Ancient Near East, about how cities were created and how landownership and real estate patterns developed into a market for real estate. The third volume was on Economic Renewal in the Ancient Near East, about how debt cancellations restored the land to its citizen-cultivators to provide a means of self-support for the free citizenry.

These colloquia grew so popular that we added a fourth volume, Creating Economic Order: Record-Keeping, Standardization and the Development of Accounting in the Ancient Near East, on the origins of money and account keeping from Mesopotamia to Mycenaean Greece and Egypt. And then ten years ago we had our fifth colloquium on Labor in the Ancient World. There have been so many revolutions in archaeology and Assyriology and even Egyptology in the last ten years that we’re only publishing this volume now, to be completely up-to-date.

Karl: So the Ancient Near East, how many thousand years ago was it? Just put us in the picture.

Michael: We begin the volume in 10,000 BC in Göbekli Tepe in Turkey where you have very large city-like ceremonial sites, larger than Stonehenge, huge sites that took hundreds of years to build with huge stone megaliths, even in the pre-pottery Neolithic. They didn’t yet have metal to carve these stones. They didn’t even have pottery. But they had in Göbekli all sorts of huge carvings in a seasonal site where people would come together on ceremonial occasions, like midsummer. We researched from Turkey in 10,000 BC to Sumer in the third millennium BC, Babylonia in the second millennium BC, the building of the pyramids, and we have the actual bills and accounting statements for what’s paid to labour to build the pyramids.

We found they were not built by slaves. They were built by well-paid skilled labour. The problem in these early periods was how to get labour to work at hard tasks, if not willingly? For 10,000 years there was a labour shortage. If people didn’t want to work hard, they could just move somewhere else. The labour that built temples and big ceremonial sites had to be at least quasi-voluntary even in the Bronze Age c. 2000 BC. Otherwise, people wouldn’t have gone there.

Karl: Michael, how did you actually track this? What were you reading to get this information?

Michael: Everybody who comes to the colloquium is a specialist in their period. For instance, Carl Lamberg-Karlovsky is the archaeologist dealing with Göbekli Tepe in Turkey. My co-editor for this volume, Piotr Steinkeller, is Babylonian specialist in cuneiform. We have two Egyptian specialists in hieroglyphics, and two Mycenaean Greek specialists for Linear B. Each scholar throughout all of these five volumes was a specialist in each time period and each geographical area on which we’re concentrating.

Karl: Were you reading clay tablets, cuneiform?

Michael: They read the clay tablets if they’re from Mesopotamia. They read the notations and carvings in the Egyptian pyramids on the inside of the big rock blocks that made the pyramids. Teams would carve or write the home town they came from. We also have royal inscriptions.

We found that one reason why people were willing to do building work with hard manual labour was the beer parties. There were huge expenditures on beer. If you’re going to have a lot of people come voluntarily to do something like city building or constructing their own kind of national identity of a palace and walls you’ve got to have plenty of beer. You also need plenty of meat, many animals being sacrificed. Archaeologists have found their bones and reconstructed the diets with fair accuracy.

What they found is that the people doing the manual labour on the pyramids, the Mesopotamian temples and city walls and other sites were given a good high protein diet. There were plenty of festivals. The way of integrating these people was by public feasts. This was like creating a peer group to participate in a ceremonial creation of national identity.

Karl: Back in those times, how would they have realised when this festival was on, how was communication spread that this was the time to come together?

Michael: We discussed this in the second volume of our series, Urbanization & Land Use in the Ancient Near East. They did it by the solar and lunar calendar, by counting the moons leading up to solar solstices or equinoxes. The great ceremonial sites from Stonehenge to Turkey were based on the particular equinox or solstice. Chieftains usually would be the calendar keepers. Going all the way back to the Ice Age around 29,000 BC Alex Marshack, one of our members, published The Roots of Civilization reporting on the carved bones he found with notations for the phases of the moon. The job of the chieftain was to keep the lunar calendar, trace the waxing and waning of the moon to calculate how long the month would be, and to decide that, “Ah, in this month, six months after the equinox, here’s where we have to get together and have everybody come to the gathering and begin working on the big site”.

The pyramids and other ancient monuments were built by free labor, not by slaves

Karl: I’m still trying to grasp this Michael. Would all these labourers come together in a centralised place to build this giant statue or pyramid based on some sort of goodwill?

Michael: Well, to begin with, you would have a beer party to get everybody friendly. You would have big feasts, and also these were the major occasions for socialization. All over the world, communal feasts were the primordial way to integrate societies.

Obviously somebody was in charge of designing these monuments. We don’t know whom, but they would supervise the cutting and carving of the stones. These had to be brought over large distances, just like in Stonehenge. The groups would quarry them and cut them. Maybe the cutters and designers were the same people. And in Göbekli we’re dealing in a time before they’d invented steel or metal. Many of the stones had to be cut and designs carved just by chipping away with other stones. It obviously was a very laborious type of work.

Corvee labor was supplied on the basis of landholdings

Later, by about 2,000 BC, populations were growing more dense. There also was a shift from the temples, which originally organised most of these mega-projects, to the palaces that developed out of them around 2750 BC. Their scribes developed accounting practices to schematise and organise this labour coming together. To coordinate this in an equitable, almost schematic way, land tenure was allocated on the principle that whoever had such-and-such a plot size had to supply a given number of labourers to work on the public infrastructure. So what we found as a by-product of the labour volume is that the origins of land rights were defined by the tax payments – the corvée labor obligation.

To get the right to a given land of a given size, you had to promise on such-and-such dates to provide this much labour for the corvée project. It’s a French word, because a corvée tax in the form of labour instead of money payments lasted all the way down through the 18th Century in France. It was typical in mediaeval Europe before you had a money economy. Everybody who had their own subsistence land or their own land holdings of one form or another, or their grazing lands, would have to supply X number of labourers to the big building project.

Karl: That’s quite some discovery. So you’re saying that labour was provided as an in-kind payment for taxation based around calendars to build these giant monuments?

Michael: Yes. Each of our archaeologists, Assyriologists and Egyptologists has found this for every period of the Bronze Age and the Neolithic.

Karl: And so we’re still rather on a voluntary level, there was no quantifying –

Michael: There weren’t that many people in the world in 10,000 BC, 3000 BC or even 2000 BC. If a government got too oppressive, or when they would raise the contributions or taxes too high, people would just flee to another area. Or if they were too much indebted the debtors would flee, as they did from Babylonia around 1600 BC. We are talking about free labor, not slave labor.

Karl: So they built a social contract around these feasts, around this sense of belonging by being at this public works event. It sounds like a fascinating way to keep society on track and organise labour so that civilisation would develop on some level. Have you found any indication on that managerial class and how they developed through the chieftains?

Michael: First the priesthoods, then the accountants and scribes. The calendar keepers were usually the chiefs (there may have been “sky chiefs” and “war chiefs” separately, or perhaps their roles were combined as dynastic rulers developed). Most of the religions were cosmological. They wanted to create an integrated cosmology of nature and society (“On earth, as it is in heaven”). Administration was based on the astronomical rhythms of the calendar, lunar and solar cycles. For instance, you typically find a society divided into 12 tribes, as you had in Israel and also in Greece with its amphictyonies. In a division of 12 tribes, each could take turns administering the ceremonial centre for one month out of the year.

The physical design of cities also was based on the calendar. Big cities would have 12 gates. Most cities had maybe four gates, representing the four seasons or the four quarters of the Earth. The outline of the land and the Earth was based on a calendrical cosmology, much like a mandala.

Ceremonial sites such as Stonehenge also were calendars in miniature, designed so that the light would fall on the stones in a particular way on a solstice or equinox. We have this going back into the Ice Age around 30,000 BC. Alex Marshak’s article in our volume on urbanisation found that these sites already in the Ice Age were usually sited on waterways, so that everybody could get to them. They often were sited with mountains in the background and in between them the sun would shine in a particular way on the equinox or on the solstice in a particular alignment that occurred just at that calendrical time. They were recreating the cosmos on Earth.

Karl: You’re on 3CR’s Renegade Economists, this week with distinguished Research Professor Michael Hudson from Michael-Hudson.com and we’re discussing his new colloquium book “Labour in the Ancient World”. We’re tracking back some 10,000-odd years, hearing about how civilisation was developed. Michael, this is a fascinating discussion. I’m interested, of course, here on the Renegades, about this role of land tenure, and how that influenced citizens’ role in society. From what I’ve read out of your new book, it sounds like land holdings played a huge role in the status of a participant in one’s society.

Ancient citizenship, voting rights – and social obligations – were based on landholding

Michael: In America down to the time of the Revolution in the 18 th century, and in early Australia I assume also, in order to be a citizen and vote, you had to be a landowner. And all the way back in Rome and earlier times, Mesopotamia, Babylonia, Sumer, citizens had to have their own land. In Rome each citizen’s voting rights were defined by the land area he owned. I say “he” because only the males were citizens. It was a patriarchal society, with voting rights proportional to the size of one’s landholdings.

Much as today, debt was a major factor concentrating landholdings. Finance always has been the great lever to appropriate the land rent and interfere with widespread land ownership. If you owe money on a mortgage and you can’t pay, you can be evicted. That began to happen already around 2000 BC in Babylonia.

But the process was limited and reversed, because when creditors evicted land-tenured citizens, this caused a problem for rulers. The former landholder no longer was a citizen – and if he’s not a citizen, he can’t serve in the army.

One’s rank in the army down through Roman times was defined by how much land one had. If you had just a basic subsistence plot, you were in the infantry. If you had a lot of land, you were able to support yourself in leisure, have a horse and participate in the cavalry, practicing military training and buying your armour and weapons. You find much the same thing in Japan. All over the world, citizenship, landownership and one’s rank in the army were linked together.

Karl: Yes, the English military had the same arrangement. So you can see a point that if you own lots of land, you want to defend it, so these landowners need to be involved to defend their land. How times have changed.

Michael: They weren’t merely defending; they were also aggressive. There was continual warfare. Attacking and defending also had a financial dimension. In Greece a military manual in the 3 rd century BC was written by a man who took the pseudonym of Tacticus – not Tacitus as in Rome, but Tacticus for tactics. He wrote that if a general planned to attack a city, he should promise to cancel the debts and free the slaves, in order to get the debtors to come over to his side. And if you’re defending a city, you also promise to cancel everyone’s debts and free the slaves. That’s how you get people on your side.

Coriolanus did that in Rome, and Zedekiah in Judah. But both rulers went back on their word as soon as the fighting was over. However, in Babylonia we have more or less regular debt cancellations whenever a new ruler would take the throne. This is in our third volume, Debt & Economic Renewal in the Ancient Near East. Babylonian rulers would proclaim andurarum and misharum, their words for a Clean Slate. David Graeber picked up this historical analysis in Debt: The First 4000 Years, discussing it from an anthropological point of view.

These proclamations did three things – the same three things you find in the biblical jubilee year (which used a cognate word, deror): These acts liberated the debt servants and let them return to their family of origin; they canceled all the personal debts that were owed (but not commercial business debts); and they returned the land rights or crop rights to debtors who had pledged them to their creditors. These royal proclamations restored order by making things the way they were in an idealised past. It was a situation where everybody was supposed to own their own self-support land to provide their means of subsistence free of debt. That was their idea of economic balance.

This is the opposite of debt serfdom reducing more and more people to debt peonage, obliged to pay their income to creditors. If they finally lose their job, they lose their home and their house and the banks get to keep it. That practice would have depopulated the ancient world. If that would have happened, debtors would have just got up and left, or they’d go over to the enemy when other armies would attack. You’d have defections. So reversing personal debts preserved widespread landownership and liberty from debt.

Karl: Right, so reiterating, the Clean Slate would build that social contract with the ruler and help continue the goodwill that led to this massive public development that was voluntarily provided tax in-kind, usually in labor. It sounds fascinating that people would just defect and move to another country under another ruler if the debt stayed too high, even back in those times when we weren’t anywhere near as mobile as today.

Michael: We have all sorts of documents around the 14th and 13th centuries, especially about the hapiru, bands of debt fugitives and others, who some people translate as Hebrews. Rome was said to have been founded by exiles and runaways, mainly runaways from debt who created their own society there. Flight from debt goes way back.

Bronze Age “divine kingship” gives way to classical creditor oligarchies

Karl: Given the history of Clean Slates and the jubilee, how did agrarian debt develop? And how did the conflict of interest between creditors and rulers play out?

Michael: It played out differently everywhere. There was a constant tension from the Bronze Age through classical antiquity between rulers trying to maintain a society under their control, and local headmen trying to get power for themselves. The big question was who would run society and draw up its rules. Would it be the priesthood and military rulers at the top of the pyramid, or creditors and warlords grabbing peoples’ land and trying to create their own control? Strong rulers like Hammurabi were able to centralise rule. He proclaimed andurarum upon taking the throne, and numerous times thereafter, down to his 30th year of rule. When he was sick and dying, his son Samsuiluna also proclaimed misharum to restore order to start his own reign in balance. But then you’d have Intermediate Periods with a free-for-all in which local leaders gained autonomy. And they simply disobeyed royal Clean Slates.

From 1200 BC to about 750 BC in the Mediterranean you have a Dark Age. Apparently you had not only very bad weather around 1200 BC – maybe a small Ice Age and drought – but the weather and crop failures led to mass migrations and invasions. The palaces of Mycenaean Greece were burned and syllabic writing disappeared for nearly 500 years. Then, when you have alphabetic writing emerging, the person whose title originally meant “local branch manager” of the palace workshop suddenly appears as the basileus, the ruler. But mostly you have landholding aristocracies holding the population in debt serfdom (like the Athenian hektimoroi, “sixth parters” liberated by Solon in 594 BC). It was much like the post-Soviet kleptocrats when Red Managers gave themselves control of their companies. When central power falls apart, local headmen take over. The dissolution of royal power led to privatization – including the privatization of credit, taking it and its rules out of royal hands. So Clean Slates stopped.

Much the same thing occurred in England. After the Norman invasion you had the Magna Carta when the autocratic King John tried to grab all the economic surplus for himself. The landowning barons wanted to break free. The Magna Carta limited what kings could tax without landlord agreement. The barons said, in effect, “The rent that we formerly paid to support the royal army, we henceforth will keep for ourselves. Also, we won’t pay the debts we owe to the Jews, so that we can keep our land.” The founding constitution or legal documents of almost every nation have to do with the relationship between finance, land tenure and its tax liability, and the relationship between centralised power and local power.

You could say that the progress of civilisation for the last thousand years, since feudal times, has been a dissolution of autocratic feudal power toward more democratised power. The problem is that land has been democratised on credit. So instead of owing money to landlords, homeowners now owe money to their bankers.

Creditor stratagems to evade the law and religious sanctions

Karl: That is the challenge of the ages isn’t it? Looking through these writings of yours, it becomes clear that this battle between credit and the sovereignty of this democratic process has been an ongoing challenge. In antiquity, did the vocabulary distinguish interest from usury?

Michael: No. It was only in the 13th century that Thomas Aquinas and the Schoolmen distinguished between interest and usury. Any taking of interest was considered usury in antiquity. That’s why some people tried to ban it, mainly for consumer interest. When the distinction was made, usury was supposed to refer to consumer loans, and interest was for bona fide commercial loans. These usually involved shipping to foreign buyers or transferring payments from one country to another, for instance when barons left to fight in the Crusades. The Latin word for such foreign exchange fees was agio, a premium.

Bankers managed to get around Christian sanctions against usury by saying, “Okay, it’s not interest, it’s a fee. It’s a foreign exchange fee.” They would pretend to make a foreign exchange transaction, and pay for the currency convertibility. If you’re converting Australian pounds into dollars, you have to give a few percentage points to the banker. In medieval times, interest was concealed as a foreign exchange fee and as interest or, for real estate, as rent – much as in today’s Islamic finance. This was called “dry exchange,” because it occurred on dry land. No sea transport was involved.

Karl: So when we look over the history of this era and its battle between credit and the ruling elite, the challenge was to maintain land ownership within your community and keep your people there, making sure that they had some share in the benefits of working together. This sort of independence of people being able to live off their land seems to have become a battle between democratic principles and creditors.

Michael: That’s basically so. Early common law had blockages against the things that creditors could foreclose on – the widow’s ox, the blacksmith’s anvil and basic tools of one’s trade and self-support. If you were a creditor and wanted to get somebody else’s land, you needed a legal stratagem.

In Babylonia and neighbouring Indo-European speaking communities such as Hurrian-speaking Nuzi, customary land tenure rights were only transmissible within a family or clan. The aim was to enable kinship units to supply their basic needs. The creditor’s stratagem was to get himself adopted by the debtor as number one son, as his heir. When the debtor died, the number one son, the creditor, would inherit most of the land, as if he were part of the kinship-based community. A Babylonian proverb reflects this practice: “A creditor has many relatives.” These subterfuges that creditors used are much like the small print that bank lobbyists write into today’s bankruptcy laws to stack matters in their own favor. Creditors and Wall Street have always been subtle in finding end runs around laws, obeying the letter of the law but changing the spirit of the law.

The U.S. political outlook: the Democrats and Hillary Clinton’s 2016 run

Karl: Changing gears, let’s speed into the current American situation with Elizabeth Warren and the Democratic ticket. I saw this week that she’s come out fighting against banks and their threat to reduce donations to the Democratic Party if she doesn’t tone things down. Did your blood boil when you read that Michael?

Michael: Not at all. The Democratic Party in America is the party of Wall Street. A Republican administration could never get away with turning over power to Wall Street, because as long as they’re in power, the Democratic opposition will block them from doing it. Although the Republican Party is almost entirely funded by lobbyists, the Democratic Party is the one that has the power to unblock the giveaways to Wall Street. Most of this is done under former Clinton Treasury Secretary Robert Rubin who got rid of the Glass-Steagall Act, blocked regulation of bank derivative gambles, and inaugurated the wave of deregulation and outright criminalization of banking.

The Glass-Steagall Act was repealed in 1999, when the Clinton Administration also blocked regulation for bank speculation in derivatives. It took only eight years for the most criminal organisations, Citibank and Bank of America (which bought the junk mortgage writer, Countrywide Finance) to bring down the economy. The head of Citibank was Rubin, after having freed it from regulation. What the press called the Rubino Gang wrote fake mortgages – they’re called “liar’s loans” or “Alt-A,” based on false declarations of income and false property valuations (the liars were the banks and the mortgage brokers) and sold them to gullible investors like German Landesbanks that were naïve enough to believe that Wall Street wouldn’t try to cheat them. The junk mortgage bubble was one of the biggest ripoffs in history.

You can read what my UMKC colleague Bill Black has written recently on Naked Capitalism and the University of Missouri Kansas City site, New Economic Perspectives on the Citibank criminogenic organisation. The Democrats under Obama have blocked any prosecution of financial criminals. Not a single bank crook has been thrown in jail after over $4 trillion had been stolen and bailed out by the Federal Reserve’s wave of Quantitative Easing. The crime wave of Wall Street and real estate in the last decade has endowed an entire ruling class for the next century in America.

They’re as criminal as the Russian kleptocrats, because they’re in total control of the government. They’ve used their power to re-define the meaning of a “free market.” To them, a free market is one completely free of government regulations to control banking, and free of any criminal prosecution, because they have their factotums in the Justice Department. The head of the Justice Department is Eric Holder, whose job is to protect Wall Street. He resigned recently in favour of a successor, Loretta Lynch, who also is a non-prosecutor of Wall Street’s.

So essentially the real estate and mortgage system in America has been criminalised in the way that Bill Black has been describing in four wonderful articles that he’s published in the last week on Naked Capitalism. Hillary is fully on board with the Rubinomics gang.

Finance capitalism is dominating and stifling industrial capitalism with debt deflation

Karl:Excellent Michael, I’ll look forward to reading those. That’s the horror story of banking, but I like the fact that you’ve dug into the archives and found one of the bright spots for the finance industry, and that was the Saint-Simonian banking ethos. Can you remind our listeners what that was all about, and how we hope the finance sector might evolve?

Michael: In the 19th century the Industrial Revolution was really taking off. The great financial question was how to create a banking system that would help industrialise countries to bring them into the modern era. Before the 19th century – ever since antiquity – you don’t find banks lending to build factories or other means of production. Loans were made against property pledged as collateral, or were made largely to export goods once they were produced. But banking before the 19th century did not actually fund tangible capital investment. James Watt wasn’t able to get the money for his steam engine from a bank, except by mortgaging his property and borrowing from friends.

Saint-Simon founded a school of reformers in France that realized that in order to industrialise the nation, catch up with England and overtake it, it had to move banking beyond its medieval stage. Instead of making lending to businesses in exchange for interest payments – which can force them into bankruptcy when sales turn down, bank loans should really be made on the basis of profit sharing. This is how commercial loans were made back in Babylonian times. Saint-Simon’s idea was to make banks more like mutual funds. Their fortunes would rise or fall with those of their business clients.

The main country that adopted this industrial banking principle was Germany as well as other central European countries. Their banks invested in their customers as stock owners as well as acting as creditors. They acted basically as the forward planning arm of industry, working with governments to promote export sales abroad.

Until World War I most futurists, from Karl Marx to regular businessmen, expected banks to take the lead in planning society. But after Germany lost World War I, the world reverted to Anglo-American banking. This was basically short-term hit and run. Banks still don’t make loans for industrial development. They do lend for raiders and mergers to take over companies, and also to ship exports. But they’re not set up to actually fund industrial capital formation. So society has fallen back in the last hundred years to the opposite of what classical economists and what 19th-century futurists expected banking to become.

Although we do have a centrally planned society, it is centrally planned by Wall Street, the City of London, Frankfurt and other financial centres. This planning is extractive, not productive. It seeks to extract interest payments, to profiteer from takeovers and gambles, and to make capital gains on stocks and real estate speculation. But it’s not designed to industrialise economies. That’s why most of the world outside of China is in a period of economic shrinkage and de-industrialisation.

Karl: So to wrap things up Michael, what can we learn from the Ancient Near East? Perhaps you can tell us how you got interested in this historical topic going way back through these cuneiform readings of clay tablets.

Michael: For me, the advantage of studying the ancient Near East is to see how different economies through history have dealt with the phenomenon of debts that are too large to be paid. Right now you’re having in the Eurozone with its arguments against Greece saying that if its government can’t pay its debts to the IMF, European Central Bank and the rest of the troika, it has to submit to austerity, even if its population is forced to emigrate. That is what much of the Greek population is doing. Shrinkage and emigration is what has to be paid for not being able to cancel debts – in this case public debts. The ancient Near East couldn’t afford the Eurozone’s pro-creditor stance, because it would have been depopulated and been conquered by neighbouring countries that didn’t submit to such austerity.

The advantage of studying the ancient Near East is to see a contrast with today. I got into this originally when I was working with the United Nations Institute for Training & Research (UNITAR) in 1978 and ’79. We had a meeting in Mexico and I gave a lecture on what I’d found when I was Chase Manhattan banks’ balance-of-payments economist. The Third World couldn’t pay the foreign debts it had run up. This was a few years before Mexico declared it couldn’t pay in 1982. There was such a fuss and denials by the banks that countries couldn’t pay that I decided to write a history of how societies had dealt with situations where debts couldn’t be paid. I got all the way back to classical antiquity and the Jewish lands, and then found that there wasn’t any economic history of the early Near East. The economic and financial details were scattered through many journals.

In 1984, I went up to Harvard and a decade later we decided to put together a group to study the origins of economic organization, category by category, to trace how ancient economies developed the origins of modern economic civilisation. The five books you cited earlier were the result, as well as many articles you put in my website.

Karl: Well Michael Hudson, thank you very much for joining us here on the Renegade Economists’ radio show yet again, that must be about our fifteenth interview I reckon.

Michael: Good, thank you.

April 20, 2015 Posted by | Book Review, Economics, Timeless or most popular | , , , , , | Leave a comment

Hezbollah: An Outsider’s Inside View

By Brenda Heard

hezbollah.-an-outsiders-inside-view-1Hezbollah: An Outsider’s Inside View is the answer to the question that has been asked for years by the concerned Westerner: who are those people over there and do we really need to be scared of them?

Based on an increasingly inside view of Hezbollah, this book is an opportunity for the Western reader to see for himself what this headline-grabbing group is all about.

Against a backdrop of records documenting the context from which Hezbollah has developed, you are invited to meet the administrators and the sheiks, the leaders and the fighters, the individuals and the families who are Hezbollah.

Written from a Western perspective, this inside view of the Islamic Resistance of Lebanon offers the opportunity to explore the militants at the horizon.

The website supporting this book is http://insidehezbollah.com.

“Hezbollah: An Outsider’s Inside View”  is available as an ebook or as a printed book with free delivery worldwide.  You are encouraged to rate, review, share and discuss it on bookseller websites and on Goodreads.

April 16, 2015 Posted by | Book Review | | Leave a comment

Why the West is to blame for the crisis in Ukraine: the full story

Chris Nineham reviews Frontline Ukraine: Crisis in the Borderlands by Professor Richard Sakwa

WE ALL KNOW about of the fog of war, but the current coverage and commentary on the crisis in Ukraine arguably takes wartime disinformation to new levels.

Richard Sakwa’s new book is a rare and precious exception. It is clear and measured and carefully researched and it shows that the story we are told in the west about events inside Ukraine is deeply flawed.

More generally, it exposes the idea that Russia is the aggressor and the West the protector of Ukraine’s democratic will as a travesty of the truth. In short, Sakwa’s analysis is diametrically opposed to what passes for an explanation of the Ukraine crisis in the mainstream.

One of the book’s great strengths is that it sees the crisis as a product of two connected processes, one domestic, one geopolitical.

Far from being a straightforward expression of popular will, Sakwa details how the government that emerged from the Maidan protests in February 2014 represented the victory of a minority hardline anti-Russian Ukrainian nationalism.

But this minority could come to dominate, he argues, because of the context provided by an aggressive, US-led, Western foreign policy designed to assert Western control over Eastern Europe and, at least in its more hawkish versions, de-stabilise Russia.

The push to the east

Nato and the EU have been pushing steadily eastwards ever since the end of the Cold War, despite verbal assurances from a series of Western leaders that this would not happen.

Twelve countries have joined Nato in the region since 1991. Georgia and Ukraine were promised membership at the Nato Summit in Bucharest in 2008, despite repeated warnings from the Russian government that taking Nato to the Russian border would cause a security crisis of the first order. It was only the intercession of Germany and France that forced the US to put these plans on hold.

The push to the east continued in the form, amongst others, of a plan to get Ukraine to sign up to an ‘Association Agreement’ with the EU. It was this agreement, due to be signed in November 2013, which sparked the crisis. To grasp its significance it is important to understand just how closely tied Nato and the EU have become, especially since the Lisbon Treaty signed by EU members in 2007.

Article 4 in the proposed Association Agreement committed the signatories to ‘gradual convergence on foreign and security matters with the aim of Ukraine’s ever deeper involvement in the European Security area’ (p.76). As Sakwa puts it, “it is pure hypocrisy to argue that the EU is little more than an extended trading bloc: after Lisbon, it was institutionally a core part of the Atlantic security community, and had thus become geopolitical”. (p.255)

All parties involved must have known that this document, if signed, would have caused existential anxiety in Moscow. Defenders of the West’s drive to the east justify it as the reflection of the will of the people concerned.

This is disingenuous. As Western leaders themselves have publicly admitted, a campaign to buy Ukrainain hearts and minds has been running for decades. In 2013, US Assistant Secretary of State for European and Eurasian affairs, Victoria Nuland, publicly boasted of the fact that the US had invested $5 billion in ‘democracy promotion’ since 1991, a huge sum by USAID’s standards (p.86). It has since been revealed that the EU too spent 496 million on front groups in Ukraine between 2004 and 2013 (p.90).

And there was nothing democratic about the process. Discussions about the Association Agreement in fact took place behind the backs of the Ukrainian people and the text of the agreement was not available in Ukraine till the last moment (p.74). It actually contained very little in the way of assistance to Ukraine’s economy, and its centrepiece was a radical liberalisation of EU-Ukraine trade, a direct threat to the traditional economic relations between Ukraine and Russia.

In the end, for a mixture of reasons, President Yanokovich didn’t sign up to the deal. But the pressure to sign helped to polarise the debate in Ukraine. The meaning of the agreement was an open secret in Washington. In the words of Carl Gershman from the National Endowment for Democracy, while Ukraine was ‘the biggest prize’, there was, beyond that, an opportunity to put Putin ‘on the losing end not just in the near abroad but within Russia itself’. (p.75)

Internal impact

This concerted Western strategy to surround and weaken Russia had a profound impact on the internal politics of Ukraine. Sakwa explains well the complex history that links Ukraine and Russia, a history that can’t be reduced to simple formulas of colonial dependency. The long, indigenous tradition of seeing Ukraine as part of greater Russian union has resulted in Russian being the dominant language in most of the country despite ethnic Russians being a relatively small minority. (p.8)

For all the mixed motivations behind the Maidan protests, it was a hardline anti-Russian strand that came to dominate, first in the protests themselves and subsequently in the regime that emerged out of the forced removal of the Yanukovich government.

Western policy in general gave ballast to a hardline nationalist tradition in the country that saw Russia – and the Russian minorities within the country – as the enemies of Ukrainian nationalism.

This tradition centred on the historic figure of Stepan Bandera who collaborated with the German Nazis in atrocities against Jews, Poles and Russians in Ukraine during WW2. His followers formed SS divisions which were responsible for the deaths of up to half a million people. (pp16-17). A giant poster of Bandera hung by the side of the stage in the Maidan, and many leaders of the regime that came out of the Maidan saw him as part of their tradition.

The West was minutely involved in this process. The State Department’s Victoria Nuland visited Ukraine three times in the first few weeks of the Maidan protests (p.86). The famous February leaked phone call between her and the US ambassador in Ukraine in which Nuland said ‘fuck the EU’, showed the extent to which the US was pulling the strings and in which direction.

In the call Nuland judges that the relatively moderate nationalist Vitaly Klitschko, who had the backing of Germany and the EU, should be kept out of office and that Arseniey Yatsenhuk – ‘Yats’ she calls him – a man who turned out to be a hardline chauvinist, should be the key player. Yatsenyuk indeed became the acting Prime Minister in the new government.

The result, in Sakwa’s words, was that, ‘what had begun as a movement in support of ‘European values’ now became a struggle to assert a monist representation of Ukrainian nationhood. The amorphous liberal rhetoric gave way to a much harsher agenda of integrated nationhood, and the euphoria promoted a rash of ill-considered policies’ (p.94).

As President Yanukovich was impeached and the new government was installed, armed insurgents strutted around the debating chamber. Yatsenyuk’s government was a mixture of recycled oligarchs and hard-line nationalists and fascists. It contained only two ministers from the entire south and east of the country, the areas with closest ties to Russia.

Five cabinet positions out of 21 were taken by the far right Svoboda Party, despite the fact they had only received 8% of the seats in Parliament. The minister of justice and the deputy Prime Minister came from the Russophobic Svobada party and its founder, a man with a long record of ultra nationalist activism, Andriy Parubiy, became head of the NSDC security agency.

Provocations

One of the new government’s first acts was to vote to rescind a law guaranteeing the right to instate a second official language where there were significant minorities. Although the change in the law was blocked, the vote was correctly interpreted as an attack on Russian minorities across the country.

It was followed by the outlawing of the Ukrainian Communist Party and the establishment of a ‘special service’ to root out fifth columnists in the armed forces (p.137). A wave of physical assaults on Russians duly followed.

In Odessa, pro-Russian activists were driven from an encampment into a trade union building which was then torched, killing a minimum of 48, many hundreds according to locals. The massacre was hailed by one of the Maidan leaders, Dmytro Yarosh, as ‘another bright day in our national history’ (p.98).

This series of events made a civil war virtually inevitable. Uprisings in the east of the country were motivated by political resentments, opposition to neoliberal policies and other economic grievances against Kiev, but most of all by a sense of the need for self defence. Unlike the largely middle-class movement in Kiev, the anti-Maidan movement in the Donbass region was ‘lower-class, anti-oligarchic (and Russian nationalist)’ (p.149). It was not mainly separatist. A poll by the Pew Research Center in May 2014 found that 70 per cent of eastern Ukrainians wanted to keep the country intact, including 58 per cent of Russian speakers (p.149).

The view from the East

Sakwa carefully analyses Russia’s behaviour during the crisis. His conclusions are a frontal challenge to the West’s narrative that the crisis in the Ukraine was precipitated by Russian aggression.  As he shows, this is the opposite of the truth.

After the collapse of the Soviet Union, successive governments embraced a Western orientation, even making tentative moves to join Nato. In contrast to the stereotype that has been so carefully constructed, in his first term, Putin, and his successor Medvedev, sought engagement and accommodation with the West and tried to establish structured relationships with Nato and the EU. This approach faltered according to Sakwa, because of repeated rebuffs from the West:

“Continued conflicts in the post-Soviet space, the inability to establish genuine relations with the EU and disappointment following Russia’s positive demarche in its attempt to reboot relations with the US after 9/11 all combined to sour Putin’s new realist project” p.31

Over the last decade and a half, the Russian foreign policy establishment has become more and more alarmed by the unilateralism of US foreign policy, particularly over the invasion of Iraq and the attack on Libya. The non-negotiated push eastwards by Nato and the EU could of course only be perceived as hostile.

Even in these circumstances, however, for Sakwa, Putin’s central concern was to maintain the status quo in Ukraine, and try and ensure a friendly or at least neutral buffer state based on a stable settlement within the multi-ethnic Ukrainian state.

The forced, Western-backed removal of the Yanukovich government created an immediate crisis for the Russian government. Putin reacted by running a popular poll and an armed operation to secure the secession of the Crimean region to the USSR. Given the level of hostility and the mobilisations against Russian minorities, this can have surprised no-one. The Crimea was part of Russia until 1954, and it contains Sevastopol, Russia’s only major warm-water naval base. The idea that the Russian ruling class was going to stand aside and allow this area to be taken by a pro-Nato and anti-Russian government was obvious fantasy.

But if Putin’s long-term plan had been to invade, partition or even to destabilise the rest of Ukraine, he would have taken the opportunity presented by the virtual collapse of the Ukrainian government in February last year and the anti-Kiev uprisings in the east of the country which developed as a result.

His response was in fact was very different. Sakwa argues that despite the hoopla in the Western media, with the exception of the special case in Crimea, there is little evidence of significant military intervention by Russia in the months after the crisis of February, at least until August.

Putin supported the rebels to try and gain some leverage, but when it came to military assistance the rebels in the east were denouncing Putin for not delivering it. In Sakwa’s words, “Russia used proxies in the Donbas to achieve its goals within Ukraine, but this was not an attempted ‘land-grab’ or even a challenge to the international system” (p.182).

On 24 June in fact, the Russian Federation Council revoked a ruling which had previously allowed Russian military involvement in Ukraine ‘in order to normalise and regulate the situation in the eastern regions of Ukraine’ in the run up to tripartite talks involving the new Prime Minister Poroshenko  (p.162). But Poroshenko had been the continuity candidate. On taking office, he had issued a statement calling for ‘a united, single Ukraine’ and characterising insurgents in the south-east as ‘terrorists’ (p.161).

Sakwa, along with most other sane commentators, is far from idealising the authoritarian and sometimes aggressive Russian regime. He criticises its human rights record and its institutions of governance. If anything his instincts are with a reformed integrationist ‘wider European project’, which, given the behaviour of the actually-existing Western institutions, seems a bit of a forlorn hope.

But what Sakwa’s book does so well is to ask us to go beyond rhetoric and generalities and examine the actual dynamics of the particular situation in its national and international dimensions.

Most importantly, he argues, we can’t begin to understand the Ukrainian catastrophe unless we completely reject the dominant, not to say consensual, Western account of what is happening. This is a crisis created by the West, but by threatening Russia’s core interests, it contains the possibility of a catastrophic confrontation; ‘the US has sought to create a regime in its own image, while Russia has sought to prevent the creation of one hostile to its perceived interests’ he argues (p.255).

We in the West have a responsibility to do everything possible to force our leaders back from the brink.

See also:
Richard Sakwa: History returns with a vengeance in Ukraine
Jonathan Steele: Who is really responsible for the crisis in Ukraine boiling over?

March 30, 2015 Posted by | Book Review, Economics | , , , , | Leave a comment

Why the Low Fat Diet Makes You Fat (and Gives You Heart Disease, Cancer and Tooth Decay)

Book review by Dr Stuart Jeanne Bramhall | February 12, 2015

The Truth About Animal Fat: What the Research Shows

The Big Fat SurpriseThe Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Healthy Diet lays out the scientific case why our bodies are healthiest on a diet rich in saturated fat from animal products. Analyzing study after study, Nina Teicholz leaves no doubt that the number one cause of the global epidemic of obesity, diabetes and heart disease is the low fat high carbohydrate diet doctors have been pushing for fifty years.

Blaming the Victim

My initial reaction on learning how the low fat diet became official government policy was to feel ripped off and angry. For decades, the medical establishment has been blaming fat people for being obese, portraying them as weak willed and lacking in self control. It turns out the blame lay squarely with their doctors, the American Heart Association (AHA), the US Department of Agriculture (USDA), Congress and the food manufacturers who fund the AHA (Proctor and Gamble, Nabisco, General Foods, Heinz, Quaker Oats and Corn Products Refining Corporation) for foisting a diet on them that increases appetite and weight gain.

The low fat diet is based on a “theory” put forward in the 1950s that heart disease was caused by elevated cholesterol levels – and a few deeply flawed epidemiological studies. In other words, the low fat diet is a giant human experiment the medical profession conducted on the American public while attempting to prove that saturated animal fats cause heart disease. Fifty years of research would show the exact opposite: not only do low fat high carbohydrate diets increase the risk of cardiac death, but they’re also responsible for a myriad of other health problems, with obesity and diabetes being the most problematic.

The studies Teicholz cites also debunk the myth that animal fat increases the risk of breast and colon cancer.

Heart Attacks Rare Prior to 1900

Coronary artery disease and heart attacks were virtually unknown prior to 1900. When Ancel Keys, the father of the low fat diet, began his anti-fat crusade in the 1950s he claimed that industrialization and an improved standard of living had caused Americans to switch from a plant based diet to a diet that was higher in animal fats. This was total rubbish. Prior to 1900, Americans had always eaten a meat-based diet, in part because wild game was much more plentiful in North America than in Europe. Early cookbooks and diaries reveal that even poor families had meat or fish with every meal. Even slaves had 150 pounds of red meet a year, which contrasts unfavorably with 40-70 pounds of red meat in the current American diet.

What changed in the twentieth century was the introduction of cheaper vegetable fats into the American diet, starting with margarine and Crisco in the early 1900s.

Keys was also responsible for the theory, again without research evidence, that high cholesterol levels cause heart disease. This was also rubbish. Fifty years of research negates any link between either total cholesterol or LDL* cholesterol and heart disease. In study after study the only clear predictor of heart disease is reduced HDL. The same studies show that diets high in animal fats increase HDL, while those high in sugar, carbohydrates and vegetable oils reduce HDL.

Teicholz also discusses the role of statins (cholesterol lowering drugs) in this context. Statins do reduce coronary deaths, but this is due to their anti-inflammatory effect – not because of their effect on cholesterol.

Researchers Silenced and Sidelined

For decades, researchers whose findings linked low fat diets with higher rates of heart disease, cancer, stroke and tooth decay were systematically silenced and sidelined. As frequently happens with doctors and scientists who challenge the powerful health industry, their grants were cut off and, in some cases, their careers destroyed.

For fifty years, the medical establishment simply ignored the growing body of research linking the high sugar/carbohydrate component of the low fat diet to heart disease, as well as those linking vegetable oils to cancer. Vegetable oils oxidize when cooked, leading to the production of cancer causing compounds such as aldehyde, formaldehyde and 4-hydroxnonene (HCN). Unsurprisingly diets in which vegetable oils (other than olive oil) are the primary fat are linked with an increased incidence of cancer. Several studies overseas have found high levels of respiratory cancer in fast food workers exposed to superheated vegetable oils.

The Atkins Diet

The Big Fat Surprise includes a long section on the Atkins diet, a popular high fat/protein low carbohydrate weight reduction diet in the 70s and 80s. The use of a high fat low carbohydrate diet for weight loss dates back to 1862 and was heavily promoted by Sir William Osler in his 1892 textbook of medicine. According to Teicholz, recent controlled studies totally vindicate Dr Robert C Atkins, who was ridiculed as a dangerous quack during his lifetime. They also debunk claims that high levels of protein in the Atkins diet cause kidney damage. In addition to being perfectly safe, controlled studies show it to be extremely effective for weight loss and treating diabetes.

The USDA and AHA Quietly Reverse Themselves

As Teicholz points out in her conclusion, the nutrition researchers who blindly pursued their anti-fat campaign – and politicians and corporate funders who supported them – have done Americans an immense disservice by creating a virtual epidemic of obesity and diabetes.

A few years ago, the tide began to turn, largely due to the 29,000 subject Women’s Health Initiative launched in 1993. In 2013, the USDA and AHA quietly eliminated fat targets from the dietary recommendations. Because they made no real effort to publicize their change of heart, many doctors are still giving their patients the wrong dietary advice and hounding them about their cholesterol levels.

Dump the Skim Milk

The take home lesson from this book is that it’s virtually impossible to eat too many eggs or too much red meat, cheese, sausage and bacon. Americans (and their overseas English-speaking cousins) need to dump the skim milk and margarine down the sink because whole milk and butter are better for you. People need to go back to cooking with lard, bacon drippings and butter. Cooking with vegetable oils can give you cancer.

Anyone with a weight problem needs to totally eliminate sugar and carbohydrate (the Atkins diet recommends less than half a slice of bread a day).

And if your doctor hassles you about your cholesterol tell him or her to read this book.


*LDL (low density lipoprotein) is referred to as “bad cholesterol” due to its alleged link to heart disease. HDL (high density lipoprotein) or “good cholesterol” appears to provide some protective effect against heart disease.

March 21, 2015 Posted by | Book Review, Science and Pseudo-Science, Timeless or most popular | , , , , , , , , | Leave a comment

Israel Behind the 9-11 Attacks and Iraq Wars – Christopher Bollyn (2014)

View at Rumble

March 14, 2015 Posted by | Book Review, Deception, False Flag Terrorism, Timeless or most popular, Video | , , | Leave a comment

The CIA Against Latin America, the Special Case of Ecuador

teleSUR | March 6, 2015

Imprisoned on various occasions and subjected to numerous interrogations, Dr. Jaime Galarza Zavala is one of the estimated 120 direct victims of the CIA’s record in Ecuador.

Persecuted by the CIA for his political organizing, Galarza described to teleSUR English that “they told me that I was working as a guerrilla in the Dominican Republic. I, to this day, have never visited the Dominican Republic. But they accused me of being a guerrilla leader in the Dominican Republic. And this was a common theme with various interrogations.”

He added that, “while they interrogated me, there was somebody that called every now and then from another room. Afterward, they told me that this person they were talking with was a gringo, a North American, who never presented himself to me. But he gave them instructions as to how to continue the interrogation,” said Galarza.

A fierce critic of U.S foreign policy in the region, Galarza recently published a book titled, “The CIA Against Latin America, the Special Case of Ecuador,” co-authored by Francisco Herrera Arauz.

In an interview with teleSUR English on CIA actions in Ecuador, Herrera said,“First, they destroyed our democracy. Second, they worked with undivided attention against our citizens. They persecuted our citizens for thinking differently. People were killed, injured, there are victims of this violence, there are families that were harmed, there are exiles, the honor of some people has been ruined, there are destroyed families, and all of this was caused by the CIA’s actions.”

Both authors have previously interviewed Philip Agee, the ex-CIA operations officer whose name became internationally known when he wrote the book “Inside the Company: CIA Diary” in 1975, detailing his time working in Ecuador, Uruguay, and Mexico from 1960 to 1968 and denouncing actions undertaken by the CIA during this period.

In his testimonies of that period, Agee said that when he operated in Ecuador from 1960 to 1963, the CIA oversaw: the overthrow of two presidents; the infiltration of various political parties and organizations; and the planting of bombs in front of churches and other emblematic sites to frame leftist groups; among other actions.

At an event celebrating the new book, Ecuador’s Foreign Minister Ricardo Patiño said, “These secret policies continue in Latin America today. Nothing that Philip Agee denounced as CIA actions in the past have been discarded by the espionage seen in the present.”

To raise public awareness of the atrocities committed within Ecuador and the long-term damage caused by CIA interventions throughout Latin America, Ecuador’s Foreign Ministry has printed and widely distributed copies of the book in Spanish and English.

March 10, 2015 Posted by | Book Review, Deception, Subjugation - Torture | , , , , , , | Leave a comment

Solving 9-11: The Deception That Changed the World

Solving 9-11: The Deception That Changed the World

By Christopher Bollyn, 2012, paperback, 325 pp.

Review by James G. Smart | Washington Report on Middle East Affairs | March 2013

As terrified workers jumped from the burning towers on 9/11, five Mossad agents celebrated the event across the river in New Jersey. They high-fived each other, danced and took photos of themselves in obvious delight. Notified, the police apprehended them. They had Palestinian clothing in their truck. They failed lie detector tests, but were released. Back home they admitted on Israeli television they had come to New York “to record the event.”

Two hours before the first plane struck the World Trade Center, the Mossad-owned Odigo messaging system advised its members “to the precise minute” the time of the attack.

These events in particular caused Christopher Bollyn, an independent journalist, to suspect that Israel was a key player behind 9/11.

In his book Bollyn proposes that “9-11 was an elaborate false-flag deception carried out by Israeli military intelligence and Zionist agents” in the United States. He states that “Israeli nationals or dedicated Zionists [can be found] at every key point of the 9-11 matrix.”

The author begins with a short review of Israel’s successful false flag operations. He then traces the germ of the 9/11 project to Mossad head Isser Harel, who informed an American visitor in 1979 that “your tallest building will be the…symbol they [the terrorists] will hit.”

The next step was getting control of security for the World Trade Center, which the Mossad actually did—briefly—in 1987, under the name of Atwell Security. This company soon lost its contract due to the criminal past of one of its officers.

Thereafter, according to Bollyn, the Mossad worked through dual-allegiance Americans like Jeremy Kroll and Maurice Greenberg. Indeed, Kroll Associates was in charge of security at the World Trade Center from the early 1990s until after 9/11. The first plane hit the security rooms of a Greenberg company in the North Tower. This truly was, says Bollyn, “an amazing coincidence.”

At this crucial point, however, Bollyn’s storyline breaks down. He may infer, but does not even suggest, that Kroll Associates allowed Mossad agents into the buildings to rig them for demolition. He merely states that the residue of the detonating material thermite was scientifically proved to be in the dust. He does not speculate how it got there.

The author makes a very strong case in identifying numerous private companies in America dealing in information and technology with roots either directly to Mossad-founded companies or companies officered by committed partisans of Israel. These companies proved to be the “Achilles’ heel” of U.S. defense.

Companies, often small, such as Ptech, Mitre, and U.S. Aviation, provided or had access to highly important defense information. Such companies helped develop the software to control hijacking—and well before 9/11. Passenger planes, like drones, could, and can, be controlled by “ground pilots.” Obviously this software alone could have stopped the airplanes of 9/11.

Further, facility with this new software was used to foil “a military response to the emergency as it developed.”

The author concludes with the issues of the hasty clean-up of the crime scene and appointments to the Justice Department. Again committed Israelists turn up in these areas.

Hugo Neu-Schnitzer Corporation and one of Israeli Marc Rich’s companies took part in shipping off the crime scene evidence from Ground Zero. An interesting aspect of the clean-up was the dredging of the two-mile long Claremont Channel in August 2001—the month before the attacks—from shallows of only 10 feet deep to a depth of 35 feet so that ocean-going vessels could quickly haul the steel away.

The appointments of Michael Chertoff, Michael Mukasey and Alvin Hellerstein to the Justice Department were keys in preventing court cases of the 76 victim families who refused to take the government’s compensation money from proceeding to trial.

Bollyn is often meandering and difficult to follow; nonetheless, he opens a path that needs to be pursued. The author is to be complimented for pursuing an idea that many people have long suspected but have wished to avoid.

James G. Smart is professor emeritus, Keene State College, and a member of PEN (Palestine Education Network), a project of NH Peace Action.

February 27, 2015 Posted by | Book Review, False Flag Terrorism, Timeless or most popular, Wars for Israel | , , , , | Leave a comment

Five Surprises About American Internment During World War II

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By Jan Jarboe Russell | Disinformation |January 20, 2015

The general history of America’s internment of its own citizens during World War II has focused on the incarceration of 120,000 Japanese, 62 percent of them American-born, who were forcibly evacuated from the Pacific coast after the bombing of Pearl Harbor.

But few people know that Executive Order 9066, signed by President Roosevelt, which permitted the roundup of Japanese and their American-born children, also paved the way for the arrest of Germans and Italians who the FBI considered security risks and labeled as “enemy aliens.” Indeed the day before Roosevelt signed the order FBI agents had arrested 264 Italians, 1,296 Germans, and 2,209 on the East and West Coast. The hunt for perceived enemies was on.

Here are five surprising facts about the extent of FDR’s internment program:

Fact One: The arrests of suspected enemies extended far beyond our national borders. Under provisions of the Enemy Alien Act of 1798, the same act that allowed Presidents George W. Bush and President Obama to intern modern-day suspected terrorists, Roosevelt orchestrated the removal of 4,058 Germans, 2,264 Japanese and 288 Italians from thirteen Latin American countries — and locked them up around the United States, many in a secret government internment camp located in Crystal City, Texas, an isolated desert town located at the southern tip of Texas, only thirty miles from the Mexican border. His reason? Roosevelt feared security threats from Germans and Japanese in Latin America.

Fact Two: Incredibly, among those taken from Latin America included a small number of Jews who had fled persecution in Germany. In his book, Nazis and Good Neighbors, Max Paul Friedman documented 81 Jews in Latin America who were part of the roundup. One Jewish family — the Jacobis from Columbia – was interned in the camp in Crystal City.

Fact Three: The entire political and military establishment applied pressure on Roosevelt to pursue a vigorous internment policy. The only person close to him who opposed it was Eleanor Roosevelt who believed the case against immigrants was driven by wartime hysteria. “These people were not convicted of any crime but emotions ran too high, too many people wanted to wreak vengeance on Oriental looking people,” she wrote of the evacuation order for the Japanese.

Shortly after the attack on Pearl Harbor, Roosevelt told Attorney General Francis Biddle to arrest Italians and Germans. “I don’t care so much about the Italians. They are a lot of opera singers, but the Germans are different: they may be dangerous.” In response, Biddle widened the net of suspicion.

Fact Four: One reason for the internment program was to create a pool of people of hostages to exchange for Americans trapped behind enemy lines in Europe and in the Pacific. FDR created a secret division within the Department of State called the Special War Problems Division, which negotiated numerous prisoner exchanges with Japan and Germany.

Fact Five: The Crystal City Internment Camp was at the center of those exchanges. Some former internees, who were children in the camp, refer to it as The Kidnap Camp. Thousands of internees in Crystal City, including their American-born children, were exchanged for ostensibly more important Americans — diplomats, businessmen, soldiers, physicians, and missionaries — behind enemy lines in Japan and Germany.

The first of four exchanges in Crystal City took place in June 1942 and the second on September 2, 1943. During those exchanges, more than 2000 Japanese and Japanese Americans were traded for Americans caught in Japan. In February 1944, 634 German immigrants and their children, were sent from Crystal City into Germany. On January 2, 1945, 428 more in Crystal City were traded into war.

The tableau of today’s headlines about government surveillance, internment and prisoner exchanges was written more than seventy years ago in Crystal City, Texas.

~

Jan Jarboe Russell, author of The Train to Crystal City, is a former Nieman Fellow, a contributing editor for Texas Monthly, and has written for the San Antonio Express-News, The New York Times, Slate, and other magazines. She lives in San Antonio, Texas, with her husband, Dr. Lewis F. Russell, Jr. For more information please visit http://www.janjarboerussell.com, and follow the author on Facebook and Twitter

January 20, 2015 Posted by | Book Review, Ethnic Cleansing, Racism, Zionism, Timeless or most popular | , , | Leave a comment