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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

Assassination Nation

Drones and Targeted Killing

By Ron Jacobs | CounterPunch | January 16, 2015

Imagine living in a town or neighborhood where a serial killer is on the loose. The killer’s primary weapon is a pipe bomb filled with small metal projectiles like BBs and nails. The bombs are designed to kill and maim those in the vicinity of the explosion. The killer’s weapons are usually aimed at male targets, but quite often several others in the vicinity are also killed, including women and children. Oftentimes, a note is sent to the media after the attacks warning of future attacks unless the people being targeted give in to the killer or killers’ demands. The fact of the attacks’ unpredictability has created a perennial fear in the region, leaving every resident uncertain of their future and their family’s safety.

Now imagine the killer is the United States military and CIA. The pipe bombs are armed drones packing explosives powerful enough to kill everyone within a few hundred meters. Although the drones are not randomly aimed, the appearance to those targeted on the ground is that they are. In other words, nobody in the targeted vicinity knows when or exactly where the drone will hit and who it is intended to kill. In response, the local residents of the targeted area stay inside, not sending their children to school or going to work all the while hoping their families will not be murdered in the next attack. Then the drone strikes, killing at first a man and his fellow tea drinkers. The screams of the wounded and dying attract his neighbors, who go to retrieve the wounded. Some approach quickly while others much more tentatively, knowing of the likelihood of a second drone strike designed to kill the rescuers. Then, the silence.Layout 1

Since the use of killer drones by the United States began, more than 3500 people have been killed. Many of those killed were civilians. The number of civilians killed depends on how one counts civilians. The US government tends to consider every male in a targeted area over the age of fourteen to be a militant (itself a rather ambiguous term) and does not count their deaths as civilian deaths even when it is clear they were not involved in hostilities. If we were to apply this metric to the deaths that occurred when the planes flew into the WTC on September 11, 2001, then it seems safe to assume that the number of civilian deaths in that event would drop quite a bit. I am not suggesting that we do this, merely pointing out that the statistics regarding deaths by drone published by the US government (and related corporations) are self-serving and, at best, only somewhat truthful when it comes to the numbers of civilian dead.

Marjorie Cohn is an attorney who teaches both international human rights law and criminal law. She is a former head of the National Lawyers Guild and the editor of the recently released book Drones and Targeted Killing: Legal, Moral and Geopolitical Issues. This text includes entries written by attorneys, religious leaders, antiwar activists and others. The writers, while predominantly from the United States, also include (among others) Bishop Desmond Tutu from South Africa and human rights activist Ishai Menuchin from Israel. As the title indicates, the essays cover the topic of assassination by drone and Special Forces hit squads through a variety of prisms. However, the primary prism is the prism of international law. The unanimous consensus of every writer is that these killings are illegal by virtually every measure and precedent that exists in the field of international law. […]

In short, this book is a rapid-fire attack on the US policy of targeted assassination by drone or other means. It is also a look at the origins of this policy in Tel Aviv’s onslaught against the Palestinians and its assassination of Palestinian leaders by missile strike and commando. Most importantly it is a reasoned and legalistic addition to the demand that this policy end now and forever. After reading this book, the best words I could come up with to describe the nature of the US policy of targeted killing and assassination by drone or other means are the same words spoken by Barack Obama in the wake of the recent murders of twelve journalists in Paris by men quickly labeled terrorists. To quote the US president, these killings are “cowardly, evil attacks.”

January 17, 2015 Posted by | Book Review, Subjugation - Torture, War Crimes | , , , , , | Leave a comment

Golden Age of Pearl Harbor

By David Swanson | War is a Crime | December 5, 2014

As we read Ulysses on Bloomsday every June 16th (or we should if we don’t) I think that every December 7th should not only commemorate the Great Law of 1682 that banned war in Pennsylvania but also mark Pearl Harbor, not by celebrating the state of permawar that has existed for 73 years, but by reading The Golden Age by Gore Vidal and marking with a certain Joycean irony the golden age of anti-isolationist imperial mass-killing that has encompassed the lives of every U.S. citizen under the age of 73.

Golden Age Day should include public readings of Vidal’s novel and the glowing endorsements of it by the Washington Post, New York Times Book Review, and every other corporate paper in the year 2000, also known as the year 1 BWT (before the war on terra). Not a single one of those newspapers has ever, to my knowledge, printed a serious straightforward analysis of how President Franklin D. Roosevelt maneuvered the United States into World War II. Yet Vidal’s novel — presented as fiction, yet resting entirely on documented facts — recounts the story with total honesty, and somehow the genre used or the author’s pedigree or his literary skill or the length of the book (too many pages for senior editors to be bothered with) grants him a license to tell the truth.

Sure, some people have read The Golden Age and protested its impropriety, but it remains a respectable high-brow volume. I may be hurting the cause by openly writing about its content. The trick, which I highly recommend to all, is to give or recommend the book to others without telling them what’s in it.

Despite a filmmaker being a main character in the book, it’s not been made into a film, as far as I know — but a widespread phenomenon of public readings could conceivably make that happen.

In The Golden Age, we follow along inside all the closed doors, as the British push for U.S. involvement in World War II, as President Roosevelt makes a commitment to Prime Minister Winston Churchill, as the warmongers manipulate the Republican convention to make sure that both parties nominate candidates in 1940 ready to campaign on peace while planning war, as FDR longs to run for an unprecedented third term as a wartime president but must content himself with beginning a draft and campaigning as a drafttime president in a time of supposed national danger, and as FDR works to provoke Japan into attacking on his desired schedule.

The echoes are eerie. Roosevelt campaigns on peace (“except in case of attack”), like Wilson, like Johnson, like Nixon, like Obama, and like those members of Congress just reelected while blatantly and unconstitutionally refusing to stop or authorize the current war. Roosevelt, pre-election, puts in Henry Stimson as a war-eager Secretary of War not altogether unlike Ash Carter as a nominee for Secretary of “Defense.”

Golden Age Day discussions might include some known facts of the matter:

On December 7, 1941, President Franklin Delano Roosevelt drew up a declaration of war on both Japan and Germany, but decided it wouldn’t work and went with Japan alone. Germany, as expected, quickly declared war on the United States.

FDR had tried lying to the American people about U.S. ships including the Greer and the Kerny, which had been helping British planes track German submarines, but which Roosevelt pretended had been innocently attacked.

Roosevelt had also lied that he had in his possession a secret Nazi map planning the conquest of South America, as well as a secret Nazi plan for replacing all religions with Nazism.

As of December 6, 1941, eighty percent of the U.S. public opposed entering a war. But Roosevelt had already instituted the draft, activated the National Guard, created a huge Navy in two oceans, traded old destroyers to England in exchange for the lease of its bases in the Caribbean and Bermuda, and secretly ordered the creation of a list of every Japanese and Japanese-American person in the United States.

On April 28, 1941, Churchill wrote a secret directive to his war cabinet: “It may be taken as almost certain that the entry of Japan into the war would be followed by the immediate entry of the United States on our side.”

On August 18, 1941, Churchill met with his cabinet at 10 Downing Street. The meeting had some similarity to the July 23, 2002, meeting at the same address, the minutes of which became known as the Downing Street Minutes. Both meetings revealed secret U.S. intentions to go to war. In the 1941 meeting, Churchill told his cabinet, according to the minutes: “The President had said he would wage war but not declare it.” In addition, “Everything was to be done to force an incident.”

From the mid-1930s U.S. peace activists — those people so annoyingly right about recent U.S. wars — were marching against U.S. antagonization of Japan and U.S. Navy plans for war on Japan — the March 8, 1939, version of which described “an offensive war of long duration” that would destroy the military and disrupt the economic life of Japan.

In January 1941, the Japan Advertiser expressed its outrage over Pearl Harbor in an editorial, and the U.S. ambassador to Japan wrote in his diary: “There is a lot of talk around town to the effect that the Japanese, in case of a break with the United States, are planning to go all out in a surprise mass attack on Pearl Harbor. Of course I informed my government.”

On February 5, 1941, Rear Admiral Richmond Kelly Turner wrote to Secretary of War Henry Stimson to warn of the possibility of a surprise attack at Pearl Harbor.

As early as 1932 the United States had been talking with China about providing airplanes, pilots, and training for its war with Japan. In November 1940, Roosevelt loaned China one hundred million dollars for war with Japan, and after consulting with the British, U.S. Secretary of the Treasury Henry Morgenthau made plans to send the Chinese bombers with U.S. crews to use in bombing Tokyo and other Japanese cities.

On December 21, 1940, China’s Minister of Finance T.V. Soong and Colonel Claire Chennault, a retired U.S. Army flier who was working for the Chinese and had been urging them to use American pilots to bomb Tokyo since at least 1937, met in Henry Morgenthau’s dining room to plan the firebombing of Japan. Morgenthau said he could get men released from duty in the U.S. Army Air Corps if the Chinese could pay them $1,000 per month. Soong agreed.

On May 24, 1941, the New York Times reported on U.S. training of the Chinese air force, and the provision of “numerous fighting and bombing planes” to China by the United States. “Bombing of Japanese Cities is Expected,” read the subheadline.

By July, the Joint Army-Navy Board had approved a plan called JB 355 to firebomb Japan. A front corporation would buy American planes to be flown by American volunteers trained by Chennault and paid by another front group. Roosevelt approved, and his China expert Lauchlin Currie, in the words of Nicholson Baker, “wired Madame Chaing Kai-Shek and Claire Chennault a letter that fairly begged for interception by Japanese spies.” Whether or not that was the entire point, this was the letter: “I am very happy to be able to report today the President directed that sixty-six bombers be made available to China this year with twenty-four to be delivered immediately. He also approved a Chinese pilot training program here. Details through normal channels. Warm regards.”

The 1st American Volunteer Group (AVG) of the Chinese Air Force, also known as the Flying Tigers, moved ahead with recruitment and training immediately and were provided to China prior to Pearl Harbor.

On May 31, 1941, at the Keep America Out of War Congress, William Henry Chamberlin gave a dire warning: “A total economic boycott of Japan, the stoppage of oil shipments for instance, would push Japan into the arms of the Axis. Economic war would be a prelude to naval and military war.”

On July 24, 1941, President Roosevelt remarked, “If we cut the oil off , [the Japanese] probably would have gone down to the Dutch East Indies a year ago, and you would have had a war. It was very essential from our own selfish point of view of defense to prevent a war from starting in the South Pacific. So our foreign policy was trying to stop a war from breaking out there.” Reporters noticed that Roosevelt said “was” rather than “is.” The next day, Roosevelt issued an executive order freezing Japanese assets. The United States and Britain cut off oil and scrap metal to Japan. Radhabinod Pal, an Indian jurist who served on the war crimes tribunal after the war, called the embargoes a “clear and potent threat to Japan’s very existence,” and concluded the United States had provoked Japan.

On August 7, 1941, the Japan Times Advertiser wrote: “First there was the creation of a superbase at Singapore, heavily reinforced by British and Empire troops. From this hub a great wheel was built up and linked with American bases to form a great ring sweeping in a great area southwards and westwards from the Philippines through Malaya and Burma, with the link broken only in the Thailand peninsula. Now it is proposed to include the narrows in the encirclement, which proceeds to Rangoon.”

By September the Japanese press was outraged that the United States had begun shipping oil right past Japan to reach Russia. Japan, its newspapers said, was dying a slow death from “economic war.”

In late October, U.S. spy Edgar Mower was doing work for Colonel William Donovan who spied for Roosevelt. Mower spoke with a man in Manila named Ernest Johnson, a member of the Maritime Commission, who said he expected “The Japs will take Manila before I can get out.” When Mower expressed surprise, Johnson replied “Didn’t you know the Jap fleet has moved eastward, presumably to attack our fleet at Pearl Harbor?”

On November 3, 1941, the U.S. ambassador sent a lengthy telegram to the State Department warning that the economic sanctions might force Japan to commit “national hara-kiri.” He wrote: “An armed conflict with the United States may come with dangerous and dramatic suddenness.”

On November 15th, U.S. Army Chief of Staff George Marshall briefed the media on something we do not remember as “the Marshall Plan.” In fact we don’t remember it at all. “We are preparing an offensive war against Japan,” Marshall said, asking the journalists to keep it a secret, which as far as I know they dutifully did.

Ten days later Secretary of War Stimson wrote in his diary that he’d met in the Oval Office with Marshall, President Roosevelt, Secretary of the Navy Frank Knox, Admiral Harold Stark, and Secretary of State Cordell Hull. Roosevelt had told them the Japanese were likely to attack soon, possibly next Monday.

It has been well documented that the United States had broken the Japanese’ codes and that Roosevelt had access to them. It was through intercept of a so-called Purple code message that Roosevelt had discovered Germany’s plans to invade Russia. It was Hull who leaked a Japanese intercept to the press, resulting in the November 30, 1941, headline “Japanese May Strike Over Weekend.”

That next Monday would have been December 1st, six days before the attack actually came. “The question,” Stimson wrote, “was how we should maneuver them into the position of firing the first shot without allowing too much danger to ourselves. It was a difficult proposition.”

The day after the attack, Congress voted for war. Congresswoman Jeannette Rankin (R., Mont.) stood alone in voting no. One year after the vote, on December 8, 1942, Rankin put extended remarks into the Congressional Record explaining her opposition. She cited the work of a British propagandist who had argued in 1938 for using Japan to bring the United States into the war. She cited Henry Luce’s reference in Life magazine on July 20, 1942, to “the Chinese for whom the U.S. had delivered the ultimatum that brought on Pearl Harbor.” She introduced evidence that at the Atlantic Conference on August 12, 1941, Roosevelt had assured Churchill that the United States would bring economic pressure to bear on Japan. “I cited,” Rankin later wrote, ” the State Department Bulletin of December 20, 1941, which revealed that on September 3 a communication had been sent to Japan demanding that it accept the principle of ‘nondisturbance of the status quo in the Pacific,’ which amounted to demanding guarantees of the inviolateness of the white empires in the Orient.”

Rankin found that the Economic Defense Board had gotten economic sanctions under way less than a week after the Atlantic Conference. On December 2, 1941, the New York Times had reported, in fact, that Japan had been “cut off from about 75 percent of her normal trade by the Allied blockade.” Rankin also cited the statement of Lieutenant Clarence E. Dickinson, U.S.N., in the Saturday Evening Post of October 10, 1942, that on November 28, 1941, nine days before the attack, Vice Admiral William F. Halsey, Jr., (he of the catchy slogan “Kill Japs! Kill Japs!”) had given instructions to him and others to “shoot down anything we saw in the sky and to bomb anything we saw on the sea.”

General George Marshall admitted as much to Congress in 1945: that the codes had been broken, that the United States had initiated Anglo-Dutch-American agreements for unified action against Japan and put them into effect before Pearl Harbor, and that the United States had provided officers of its military to China for combat duty before Pearl Harbor.

An October 1940 memorandum by Lieutenant Commander Arthur H. McCollum was acted on by President Roosevelt and his chief subordinates. It called for eight actions that McCollum predicted would lead the Japanese to attack, including arranging for the use of British bases in Singapore and for the use of Dutch bases in what is now Indonesia, aiding the Chinese government, sending a division of long-range heavy cruisers to the Philippines or Singapore, sending two divisions of submarines to “the Orient,” keeping the main strength of the fleet in Hawaii, insisting that the Dutch deny the Japanese oil, and embargoing all trade with Japan in collaboration with the British Empire.

The day after McCollum’s memo, the State Department told Americans to evacuate far eastern nations, and Roosevelt ordered the fleet kept in Hawaii over the strenuous objection of Admiral James O. Richardson who quoted the President as saying “Sooner or later the Japanese would commit an overt act against the United States and the nation would be willing to enter the war.”

The message that Admiral Harold Stark sent to Admiral Husband Kimmel on November 28, 1941, read, “IF HOSTILITIES CANNOT REPEAT CANNOT BE AVOIDED THE UNITED STATES DESIRES THAT JAPAN COMMIT THE FIRST OVERT ACT.”

Joseph Rochefort, cofounder of the Navy’s communication intelligence section, who was instrumental in failing to communicate to Pearl Harbor what was coming, would later comment: “It was a pretty cheap price to pay for unifying the country.”

The night after the attack, President Roosevelt had CBS News’s Edward R. Murrow and Roosevelt’s Coordinator of Information William Donovan over for dinner at the White House, and all the President wanted to know was whether the American people would now accept war. Donovan and Murrow assured him the people would indeed accept war now. Donovan later told his assistant that Roosevelt’s surprise was not that of others around him, and that he, Roosevelt, welcomed the attack. Murrow was unable to sleep that night and was plagued for the rest of his life by what he called “the biggest story of my life” which he never told.

Have a Meaningful Golden Age Day!

December 7, 2014 Posted by | Book Review, Deception, Timeless or most popular, War Crimes | | Leave a comment

QUESTIONS FOR JEREMY SCAHILL, AUTHOR OF “DIRTY WARS, The World is a Battlefield”

 Australians for Reconciliation in Syria
Most people in Syria would believe that the US has been waging a dirty war against Syria for some years now and is using similar tactics to those used to destroy the Afghan government and society – the use of so-called Islamist freedom fighters as well as the stirring up of sectarian hatred and divisions. One US official actively involved on the ground in this dirty war has been former US ambassador to Syria, Robert Ford. His role in the crisis in Syria has been explored by different writers and deserves attention. For example, in September 2011, there was a report in Opinion Maker that Ford had been organising Death Squads in Syria, much like those used in Latin America to destabilise countries. Quoting from the September 2011 article by Wayne Madsen,

Ford served as the Political Officer at the U.S. embassy in Baghdad from 2004 to 2006 under Ambassador John Negroponte, the U.S. ambassador to Honduras from 1981 to 1985. Negroponte was a key figure in the covert U.S. program to arm the Nicaraguan contras and his support for vicious paramilitary units in El Salvador and Honduras earned him the nickname of “Mr. Death Squad.”

 Another element of the dirty war against Syria has been the co-opting of NGOs to support the established narrative on the crisis in Syria. So, for example, Amnesty International from almost the beginning of the crisis focused on condemning the government of Syria based on the claims of activists who supported a violent insurgency and refused to report on the killings of civilians by armed gangs early in the crisis, a key aspect of the escalating violence. From Jan 2012 – Jan 2013, Amnesty International USA was headed by Suzanne Nossel, a former State Department official and author of “Smart Power”. Robert Ford reportedly gave the key note address at an Amnesty International General Meeting in Colorado in early 2012.

For the people of Syria and the wider region, America’s dirty war against their countries is much dirtier than you present it, and for the wars to be successfully pursued many in the administration, media, NGOs, academia, diplomatic corps must be complicit to some extent or other in order for there to be a very muted response to the wars.

Your book was published in 2013. Could you please explain why you have given no attention at all to the role of Robert Ford in Syria’s crisis? (He is not listed in the index at all.) There are two brief references to John Negroponte in your book, on pages 186 and 207. They are both relatively benign and forgettable, despite Negroponte’s being the US director of national intelligence and his earlier suspect diplomatic service in Honduras.  One would expect him to figure largely in the US dirty war.  Why is Negroponte almost invisible in your book?

There is also only a passing reference (on page 186)  to Saudi Prince Bandar bin Sultan, someone known to have very close connections with the Bush family, something you mention in your book. In any serious discussion of the US dirty wars in the Middle East, one would expect much more attention given Prince Bandar. Like Negroponte, Prince Bandar has links to the dirty wars in Central America, since he arranged financial support for the Nicaraguan Contras. Bandar more recently has been an intelligence chief in Saudi Arabia and more recently an adviser to the King on ISIS. Prince Bandar is reported to have said to the head of M16 in 2001,“The time is not far off in the Middle East, Richard, when it will be literally ‘God help the Shia’. More than a billion Sunnis have simply had enough of them.”

Why do you give such a brief, innocuous mention to Prince Bandar in “Dirty Wars” when he has been so closely connected to US administrations and US dirty wars for decades?

How can your book, “Dirty Wars” contribute to a clean peace in the Middle East if major players and key aspects of the dirty wars are not exposed? 

December 6, 2014 Posted by | Book Review, Deception | , , , , , , , | Leave a comment