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Brexit: A Workers’ Response to Oligarchs, Bankers, Flunkies and Scabs

By James Petras :: 07.14.2016

The European Union is controlled by an oligarchy, which dictates socio-economic and political decisions according to the interests of bankers and multi-national business. The central organs of power, the European Commission (EC), the European Central Bank (ECB) and the International Monetary Fund (IMF) have systematically imposed austerity programs that have degraded working conditions, welfare programs, and wages and salaries.

EU policies demanding the free immigration of non-unionized workers to compete with native workers have undermined wage and workplace protections, union membership and class solidarity. EU financial policies have enhanced the power of finance capital and eroded public ownership of strategic economic sectors.

The European Union has imposed fiscal policies set by non-elected oligarchs over and against the will and interests of the democratic electorate. As a result of EU dictates, Greece, Spain, Portugal and Ireland have suffered double-digit unemployment rates, as well as massive reductions of pensions, health and educational budgets. A huge transfer of wealth and concentration of decision-making has occurred in Europe.

Rule by EU fiat is the epitome of oligarchical rule.

Despite the EU’s reactionary structure and policies, it is supported by Conservatives, Liberals, Social Democrats, Greens and numerous Leftist academics, who back elite interests in exchange for marginal economic rewards.

Arguments for the EU and their Critics

The pro-EU power elite base their arguments on concrete socio-economic interests, thinly disguised by fraudulent ideological claims.

The ideological arguments backing the EU follow several lines of deception.

They claim that ‘countries’ benefit because of large-scale transfers of EU payments. They omit mentioning that the EU elite secures the privatization and denationalization of strategic industries, banks, mass media and other lucrative national assets. They further omit to mention that the EU elite gains control of domestic markets and low wage labor.

The EU argues that it provides ‘free movements’ of capital, technology and labor – omitting the fact that the flows and returns of capital exclusively benefit the powerful imperial centers to the detriment of less advanced countries and that technology is controlled and designed by the dominant elites which also monopolize the profits. Furthermore, the ‘free flow of labor’ prejudices skilled productive sectors in less developed countries while reducing salaries, wages and benefits among skilled workers in the imperial centers.

The EU : A Self-Elected Dictatorship of Empire Builders

‘Integration into the EU’ is not a union of democratic participants; the decision-making structure is tightly controlled by non-elected elites who pursue policies that maximize profits, by relocating enterprises in low tax, low wage, non- unionized regions.

European integration is an integral part of ‘globalization’, which is a euphemism for the unimpeded acquisition of wealth, assets and financial resources by the top 1%, shared, in part, with their supporters among the top 25%.

The EU promotes the concentration of capital through the merger and acquisition of multi-national firms which bankrupt local and national, medium and small scale industries.

Political and Academic Satraps of the EU Elites

The European Union’s oligarchy has organized a small army of highly paid politicians, functionaries, advisers, experts and researchers who support the European Union in a manner not unlike NGO workers in the developing world – answerable only to their ‘foreign’ paymasters.

Numerous Social Democrats draw stipends, travel expenses, lucrative fees and salaries as members of commissions and serve on impotent ‘legislative’ assemblies.

Academics advise, consent —and draw duplicate salaries from membership in the EU bureaucracy. Journalists and academics ‘front’ for the EU oligarchy by playing a leading propaganda role. For example, they have been busy slandering British pro-democracy, anti-EU voters by (1) calling for a new referendum and (2) questioning the right of the working class electorate to vote on issues like the recent EU referendum.

The leading financial press adopts a demagogic pose accusing the pro-democracy voters of being ‘racists’, ‘nativists’, or worse, for ‘opposing Eastern European immigration’.

In fact, the vast majority of workers do not oppose immigrants in general, but especially those who have taken once-unionized jobs at wages far below the going rates for established workers, on terms dictated by employers and with no ties or commitment to the community and society. For decades British workers accepted immigrant labor from Ireland because they joined unions at wage rates negotiated by union leaders, won by long workers struggle and voted with the majority of English workers. Under the EU, Britain was flooded with Eastern European workers who acted as ’scabs’ displacing skilled British workers who were told it was ‘progress’. This acted to destroy the prospects of their own children entering a stable, skilled labor market.

The financial press’s lurid descriptions of the British workers’ anti-EU ‘racism’ against Polish immigrant labor ignores the long history of Warsaw’s virulent hostility to immigrants–namely the refugees from the wars in the Middle East. The Polish government and population exhibit the most furious opposition to sheltering the thousands of Middle East and African war refugees, while claiming that they are not ‘Christians’ or might pose cultural or even terrorist threats against the ethnically pure Polish population.

Some of the British workers’ hostility toward Polish workers has a recognized historical basis. They have not forgotten that Polish strike breakers took the side of ‘Iron Lady’ Thatcher’s militarized assault against unionized UK miners during the great coal strikes and even offered to export coal to aid the Conservative government in breaking the strike. As such, EU-Polish immigrant workers are not likely to integrate into the militant British working class culture.

The Polish regime’s aggressive promotion of the economic sanctions against Russia has further undermined English jobs linked to that large and growing market.

The financial press ignores the fact that Polish immigrants ’scab’ on unionized British workers in the construction industry, undercutting long-established UK plumbers, electrical workers, carpenters and laborers – who have multiple generational ties to their communities and work. The EU elites use the importation of Polish workers to strengthen the reactionary labor policies of the employers

After the fall of Communism, Polish workers backed a succession of right-wing regimes in Warsaw, which privatized and denationalized industries and eroded their welfare system leading to their own impoverishment. Poles, instead of fighting against these neo-liberal regimes at home, headed for England and have been helping the British bosses ever since in their own anti-labor campaigns to reduce wages and decrease worker access to decent, affordable housing, public services, education and medical care.

The Eastern Europeans became the willing recruits of the EU reserve army of labor to raise profits for industrial and finance capital thus further concentrating wealth and power into the hands of the British oligarchs.

To label British workers’ antipathy to these EU policies over the free entry of cheap immigrant labor, as ‘racist’, is a blatant case of blaming workers for opposing naked capitalist profiteering. It is not hard to imagine how the Poles would react if skilled Syrian electricians were taking their jobs!

The pro-EU prostitute press claims that the pro-democracy voters are ‘anti-globalization’ and a threat to England’s living standards and financial stability.

In fact, labor votes in favor of trade but against the relocation of English industry overseas. Labor votes for greater investment in the UK and greater regional diversity of productive, job-creating sectors, as opposed to the concentration of capital and wealth in the parasitic finance, insurance and real estate sectors concentrated in the City of London.

The EU-City of London-financial oligarchy have priced labor out of the housing market by promoting the massive construction of high-end luxury condos for ‘their kind of immigrant’, i.e. the millionaire and billionaire Chinese, Russian, Indian, Eastern European and US plutocrats who flock to London’s famous tax-evasion and money-laundering expertise.

The scribes of the EU-City oligarchy who claim that exit from the EU will lead to a cataclysmic breakdown are blatantly scaremongering. In fact, the stock and bond market, which declined for less than a week, rebounded sharply, as trade, production and demand were scarcely affected by the vote.

The hysteria-peddlers among the financial press resounded . . . in the minds and pockets of the City of London speculators. They rightly feared that their own lucrative financial operations could relocate overseas.

Conclusion

If and when the EU – City end their oligarchical control over the British economy, workers will gain an opportunity to debate and elect freely their own representatives and have a say in their own government. Leaving the EU is just the first step. The next move will be to change the rules for immigrant labor to accord with the standards of wages and conditions set by UK trade union organizations.

The following steps would include subordinating the banks to the needs of industry, investment in public housing for workers and the development of local technology for domestic producers.

The cleavage between productive labor and the EU parasites and their political hangers-on requires a new political leadership with a democratic foreign policy, which precludes overseas wars and imperial alliances.

The break with the EU logically and persuasively argues for a break with NATO and an opening toward free trade with Russia, China and the new dynamic global markets. The end of the EU can help weaken the strategic partnership between the European and City of London oligarchs. No doubt, the latter will not go without a class war of unprecedented ferocity, involving financial lockouts, manufactured fiscal crises, street mobs and parliamentary coups at the top of their agenda.

Only if the democratic electoral majority becomes a cohesive and combative class movement, in and out of Parliament, can they convert the referendum from a temporary electoral win to a stable basis for structural transformation.

Only a democratic majority can implement a fair and equitable immigration policy that strengthens labor and welfare policies and which would be based on the traditional values of British trade unionism and not on some criteria parroted by the ‘house servants’ for the lords of the EU-London ‘Downton Abbey’.

July 15, 2016 Posted by | Economics, Solidarity and Activism | , | Leave a comment

Sanctions on Lebanon a form of Israeli aggression: Berri

Press TV – July 14, 2016

Parliament Speaker Nabih Berri has denounced sanctions on Lebanese banks and other financial institutions as a form of Israeli aggression.

Speaking at the Lebanese Emigrants Economic Conference in Beirut on Thursday, Berri said Israel is constantly trying to destroy Lebanon’s infrastructure and economy.

Berri was apparently making reference to the US law, which calls for the closure of bank accounts of individuals and organizations suspected of links to Hezbollah.

Hezbollah is credited with defending Lebanon against two wars launched by Israel – the US’s staunchest ally in the region – in 2000 and 2006.

Berri said Lebanon, through the assistance of its diaspora, will eventually emerge triumphant over a plot seeking to harm the country’s economy.

“We only have hope from the expatriates, and right now we no longer have hope but from you,” he said.

Berri further lashed out at Arab states for failing to commit to promised funds to Lebanon following Israel’s war on the country in the summer of 2006, saying only a third of the aid has been paid.

In February, Riyadh suspended USD 3 billion in military assistance to the Lebanese military and another USD 1 billion to the country’s internal security forces.

The kingdom also imposed sanctions on some Lebanese firms and individuals it accused of having links with Hezbollah.

Last month, Governor of Bank of Lebanon Riad Salameh stated that 100 bank accounts linked to Hezbollah members and legislators had been closed.

Hezbollah criticized the Central Bank of Lebanon for submitting to US pressures, saying the measures violated Lebanon’s sovereignty.

July 14, 2016 Posted by | Economics, Ethnic Cleansing, Racism, Zionism, Wars for Israel | , , , , , | Leave a comment

Russia confirms Iran commitment to JCPOA

Press TV – July 13, 2016

Russia has verified Iran’s commitment to the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement signed between Iran and six world powers last year.

Sergei Ryabkov, a Russian deputy foreign minister and a chief negotiator at the talks that led to the deal, made the remarks in a meeting with Iran’s Ambassador to Moscow Mahdi Sanayi on Tuesday.

“While referring to Iran’s commitment in fulfilling its JCPOA commitments, the Russian deputy foreign minister said, ‘Moscow would also lend its support to other parties’ fulfillment of their obligations,’” the Iranian Embassy in Moscow said in a press release.

Ryabkov’s remarks come even as certain Western parties have accused Iran of having violated the spirit of the JCPOA and a United Nations Security Council (UNSC) resolution that endorsed it by engaging in developing and testing missiles.

Resolution 2231 was adopted on July 20, 2015 to endorse the JCPOA, which was itself signed six days before.

The accusations against Iran come despite the fact that Resolution 2231 puts no limits on Iran in terms of missile activities, and merely “calls upon” Iran not to undertake any activity related to ballistic missiles “designed to be capable of” delivering nuclear weapons.

Iran says it is involved in no such missile work and has no such weapons.

Under the JCPOA, Iran has in fact limited its nuclear program and provided enhanced access to international atomic monitors. The other sides have in return committed to terminating all nuclear-related sanctions imposed by the United States, the United Nations (UN) and the European Union (EU) against Iran.

During the Tuesday meeting, Sanayi, for his part, called Russia’s cooperation with Iran in the fulfillment of the JCPOA obligations valuable and constructive.

Moscow played an instrumental role in the negotiations leading to the agreement and the implementation of the deal.

Ryabkov and Sanayi also expressed satisfaction with the increased level of cooperation between Iran and Russia in the wake of the implementation of the JCPOA.

July 13, 2016 Posted by | Economics, Wars for Israel | , , , , | Leave a comment

British politics: The Establishment versus Democracy

By Neil Clark | RT |  July 13, 2016

With the dramatic withdrawal of the pro-Brexit Andrea Leadsom from the Conservative Party leadership race, the coronation of Theresa May, who supported ’Remain’ in the EU Referendum, is confirmed.

Ms. May is expected to be handed the keys to 10, Downing Street on Wednesday.

At the same time, the pro-Iraq war Labour MP Angela Eagle has launched her leadership challenge to the anti-war Labour Party leader Jeremy Corbyn.

It’s not hard to see the connection between these two developments. May and Eagle, who says that she thinks ‘Tony Blair has suffered enough’, are the clear choices of the Establishment power brokers; Leadsom and Corbyn are most definitely not. Their appeal is with their party’s membership and the wider public and not with the Westminster/media elites.

What we are seeing played out before our very eyes is an attempt by said elites to reverse the democratization of Britain’s ‘Big Two’ political parties and to restore the power of Establishment insiders to shape the direction which those parties and the country takes. Party members who think differently must be put in their place. They must be seen, not heard.

The aim of this anti-democratic counter-revolution is simple. It‘s to make sure there is no major deviation from elite-friendly, neo-liberal, crony capitalist pro-war policies, whether it be a populist left-wing deviation, which promises re-nationalisation of the railways, wealth taxes and a less aggressive stance on foreign affairs, or a populist right-wing one, which wants the UK to Brexit without further delay and which opposes Blairite ‘liberal interventionism’ in foreign policy.

Anyone who threatens to take us away from the ‘extreme centre’ (a phrase used by Miriam Cotton and Tariq Ali) of crony capitalism, endless war and the cynical use of identity politics as a cover for the most regressive policies, is targeted for destruction.

One only has to consider the relentless smears and attacks that the anti-status quo Jeremy Corbyn has been subject to from the extreme centre since he announced he was standing for the vacant Labour leadership last summer. The attacks intensified after he was elected leader. The plotters of the current ‘Chicken Coup’ against Corbyn, clearly hoped to oust the Labour leader by a procedural technicality – they hoped that Labour’s National Executive Committee (NEC) would decide that Corbyn needed the nomination of 51 MPs or MEPs in order to stand. However, the NEC voted by 18-14, that Corbyn, as the incumbent, should automatically be on the ballot.

The fact that Labour’s coup supporters tried to keep Corbyn (who was elected with a huge mandate by the party’s members and supporters only last summer) off the ballot shows the utter contempt for party democracy that these people have. Blairites support bombing other countries to smithereens to promote ‘democracy’- but they hate it in their own party!

The coup plotters say that Corbyn is a disaster, yet he has been responsible for a massive surge in Labour party membership – which now stands at over 500,000 – its highest in modern history.

But instead of welcoming the recent membership surge, the anti-democratic Blairites seem appalled that the ‘great unwashed’ are signing up. For supporting Corbyn, Labour members have been called ‘wide-eyed loonies’, ‘rabble’ and even ‘scum’. But of course, let’s just focus on Momentum and Corbyn supporters being rude to Blairites who insult them, shall we?

The arguments given by those representing the extreme center for replacing Corbyn as Labour leader are as bogus as the claims the same people made about Iraq having WMDs in 2003.

We’re told Corbyn has to go because he’s ‘unelectable’ – in fact Labour were the most popular party in May’s local elections. Labour lost millions of traditional supporters during the Blair/Brown years, while Corbyn has encouraged these people – genuine Labour people – to return to the fold.

It’s also patently absurd to argue that in order to ‘reconnect’ with the electorate, Labour needs to ditch Corbyn – who accepts Brexit – and instead have a Blairite or Brownite who is in love with the EU as its leader. And in the very week following Chilcot, it’s an insult to the 1m people killed to have an MP who voted consistently for the Iraq war – and against an inquiry into it – challenging a principled MP (Corbyn) who opposed it.

Although Corbyn will be on the ballot for the leadership campaign, his opponents have done their best to tilt things in the contest in their favour. The NEC decided that only members who signed up before 12th January and those prepared to pay a £25 fee as a ‘registered supporter’ will be able to vote.

In last year’s election the fee for being a registered supporter was just £3: the thinking behind the change is clearly to deter poorer people- who more likely to support Corbyn, from voting.

However, Unite the Union, which supports Corbyn, and is affiliated to Labour, offers 50 pence a week community membership, providing a way for Corbyn supporters to make their voices heard.

If Corbyn is toppled this summer, then we can expect new leadership rules to be introduced by the party to make sure that a popular left-winger who promises a genuine move away from the ‘extreme centre’ can never again lead the party.

In the Conservative Party leadership election, we’ve witnessed a master-class in how the Establishment engineers the result it desires. Theresa May was obviously the anointed one, but in order for her to be crowned a few things had to happen first. The maverick Boris Johnson, who was decidedly dodgy on foreign policy, as I explained here, had to be knocked out of the race. And then, after she had beaten Murdoch’s favourite, Michael Gove, onto the final short-list it was time for the Establishment’s attack-dogs to be unleashed on Mrs. Andrea Leadsom.

Revealingly, the newspaper which did it for Leadsom is also the newspaper that’s been the most unrelentingly and obsessively hostile to Jeremy Corbyn. Rupert Murdoch’s Times is an Establishment organ that regards any deviation from the extreme Blairite/Cameronite center as a heresy that needs to be firmly stamped on. All of course in the interests of ‘democracy’ and ‘moderation’!

Rather naively, Leadsom, who supported Brexit, and said she’d send off Article 50 to the EU in September if she became Prime Minister, consented to be interviewed by the pro-Remain Times.

It was the biggest mistake of her political life.

Deeply shocked when she saw the Times headline on Saturday, she accused the paper of ‘gutter journalism’ for the way they presented the interview. The Times, in response, released a partial audio recording of the interview, but still hasn’t released a full one. The journalist who interviewed Leadsom, Rachel Sylvester, was accused of contradicting her own story about not raising the subject of family and motherhood to her interviewee.

A day later, the Sunday Times, intensifying the pressure on Leadsom, reported that up to 20 Tory MPs would quit the party if she won – in effect warning her that she would have the same problems in Westminster as Jeremy Corbyn. But this report was later denied by MPs.

One doesn’t have to share her politics to acknowledge that Leadsom was stitched up by Murdoch’s Establishment mouthpiece.

She became the target of some pretty unpleasant attacks by Parliamentary colleagues, inside-the-tent journalists and some liberal-leftists too who were only too keen to support The Times against her – not to mention the newspaper’s shameful record of neocon/Blairite warmongering.

It was no surprise that after a tearful weekend,

Leadsom pulled out of the Tory leadership race on Monday. Her campaign manager Tim Loughton said: “It is absolutely not the job of media commentators to ‘big up’ politicians whether in this leadership contest or elsewhere in politics. But neither should it be their compulsion constantly try to trip them up”.

With Leadsom successfully tripped up, and the Tory party’s 150,000 members deprived of having their democratic say in their party’s leadership election, Rachel Sylvester moved on to another outsider who threatens the status quo – Jeremy Corbyn – with an article in Tuesday’s Times charmingly entitled ‘Corbyn’s Labour must be tested to destruction’.

Destroy. Destruction. Weapons of Mass Destruction. These are words the Establishment loves to use in its war against its enemies.

Meanwhile, the fear of ‘the mob’ from those inside-the-tent is there for all to see. ‘If we don’t tame Twitter, we’ll face mob rule’ was the title of one Times comment piece on Monday.

Meanwhile, Tony Blair himself is concerned about ‘the mob’, and the way the extreme centre, which he personifies, is currently threatened. “It was already clear before the Brexit vote that modern populist movements could take control of political parties. What wasn’t clear was whether they could take over a country like Britain. Now we know they can”, he bemoaned in the New York Times.

Blair and his disciples – in both Labour and the Conservative parties – want to get back to ‘business as usual, that is, a situation where they and not us are in control. People power has already gone way too far for the party elites and they desperate to put a stop to it.

The coronation of Theresa May boosts their cause, but the Extreme Center also needs to topple Jeremy Corbyn if they‘re to succeed in their One Party Britain anti-democratic project.

The stakes really could not be any higher.


Follow Neil Clark on Twitter @Neil Clark

July 13, 2016 Posted by | Civil Liberties, Economics, Militarism | , , , | Leave a comment

Boeing criticizes ban on Iran deal

Press TV – July 11, 2016

American aerospace and defense giant Boeing has criticized a possible ban by Congress on its multi-billion dollar agreement with Iran, saying that all rivaling companies should also withdraw their contracts with Tehran in case the ban is finalized.

Speaking in London on Sunday, Ray Conner, the chief executive officer (CEO) of Boeing’s commercial jetliner unit, said that attempts by American lawmakers to block the company’s 80-jet deal with Iran would only put Boeing in a disadvantaged position against its rivals.

Iranian airliner IranAir and Boeing reached a memorandum of agreement (MOA) in June, under which a total of 80 aircraft will be sold to Iran and a further 29 will be leased with Boeing’s support as part of a $25 billion contract.

However, the US House of Representatives blocked the deal on Thursday, with opponents arguing that Iran would use aircraft parts for “a military purpose.”

Congress passed two of the three measures that were drafted by its Financial Services subcommittee about the deal.

One of the measures would require the the Office of Foreign Assets Control (OFAC ) not to license the sale of the planes to Iran.

Another measure prohibits the Export-Import Bank from financing any entity engaged in business with Tehran or any other one that provides financing to another entity to facilitate transactions with it.

Meanwhile, Boeing’s European rival Airbus is also awaiting Washington’s approval of an agreement with Tehran over the purchase of 118 planes, worth over $27 billion.

More than 10 percent of Airbus components are made in the US, making the US Treasury’s green-light mandatory before the deal can proceed.

“If we’re not allowed to go forward, then sure as heck no other US company should be allowed to go forward either and that would be any US supplier to any other manufacturer,” Conner was quoted as saying by the Seattle Times.

Aside from Airbus, companies like Bombardier; Embraer and COMAC also use American parts and should be subjected to the ban, Conner added.

The deals with Boeing and Airbus came after aircraft sanctions against Tehran were lifted under a landmark nuclear deal between Iran and the P5+1 group of nations—the US, Russia, France, Britain, China and Germany—reached in July last year.

July 11, 2016 Posted by | Economics, Wars for Israel | , , , | Leave a comment

Washington’s ‘New Managers’ in Latin America: Oligarchs, Bankers and Swindlers

By James Petras :: 07.07.2016

Amid raging corruption, social pathologies and outright political thuggery, a new gang of vassal regimes has taken-over Latin America. The new rulers are strictly recruited as the protégé’s of US financial and banking institutions. Hence the financial press refers to them as the “new managers” – of Wall Street.

The US financial media has once again provided a political cover for the vilest crimes committed by the ‘new managers’ as they launch their offensive against labor and in favor of the foreign and domestic financiers.

To understand the dynamics of the empire’s new vassal managers we will proceed by identifying (1) the illicit power grab (2) the neo-liberal policies they have pursued (3) the impact of their program on the class structure (4) their economic performance and future socio-political perspectives.

Vassals as Managers of Empire

Latin America’s current vassalage elite is of longer and shorter duration.

The regimes of longer duration with a historical legacy of submission, corruption and criminality include Mexico and Colombia where oligarchs, government officials and death squads cohabit in close association with the US military, business and banking elites.

Over the past decades 100,000 citizens were murdered in Mexico and over 4 million peasants were dispossessed in Colombia. In both regimes over ten million acres of farmland and mining terrain were transferred to US and EU multinationals.

Hundreds of billions of illicit narco earnings were laundered by the Colombian and Mexican oligarchy to their US accounts via private banks.

The current political managers, Peña in Mexico and Santos in Colombia are rapidly de-nationalizing strategic oil and energy sectors, while savaging dynamic social movements – hundreds of students and teachers in Mexico and thousands of peasants and human rights activists in Colombia have been murdered.

The new wave of imperial vassals has seized power throughout most of Latin America with the direct and indirect intervention of the US. In 2009, Honduras President Manuel Zelaya was ousted by a military coup backed by Secretary of State Hillary Clinton. Zelaya’s program of agrarian reform, regional integration (with Venezuela) and constitutional elections was abolished. Zelaya was replaced by a US vassal, Roberto Micheletti who proceeded to murder several hundred landless rural workers and indigenous activists.

Washington moved to organize a constitutional cover by promoting a highly malleable landowner, Porfirio Lobo Sosa to the presidency.

The State Department next ousted Paraguyan President Francisco Lugo who governed between 2008-2012. Lugo promoted a moderate agrarian reform and a centrist regional integration agenda.

With the backing of Secretary of State Clinton, the Paraguayan oligarchy in Congress seized power , fabricated an impeachment decree and ousted President Lugo. He was briefly replaced by Vice President Federico Franco (2012-2013).

In 2013, Washington backed , the capital, Asuncion’s, notorious crime boss for President, one Horacio Castes – convicted for currency fraud in 1989, drug running in 1990, and most recently (2010) money laundering.

The Honduras and Paraguayan coups established (in miniature) the precedent for a new wave of ‘big country’ political vassals. The State Department moved toward the acceleration of banking takeovers in Brazil, Argentina and Peru.

In rapid succession, between December 2015 and April 2016 vassal managers seized power in Argentina and Brazil. In Argentina millionaire Mauricio Macri ruled by decree, bypassing constitutional legality. Macri fired scores of thousands of public service workers, closed social agencies and appointed judges and prosecutors without Congressional vote. He arbitrarily arrested social movement leaders – violating democratic procedures.

Macri’s Economic and Finance Ministers gained millions of dollars by ‘buying into’ multinational oil companies just prior to handing over private options on public enterprises.

The all-encompassing swindles and fraud carried out by the ‘new managers’ were covered up by the US media, who praised Macri’s professional team.

Moreover, Macri’s economic performance was a disaster. Exorbitant user fees on utilities and transport for consumers and business enterprises, increased three to ten-fold, forcing bankruptcy rates to soar and households to suffer light and gas closures.

Wall Street vulture funds received a seven billion dollar payment from Macri’s managers, for defaulted loans purchased for pennies over a dollar, twenty-fold greater then the original lenders.

Data based on standard economic indicators highlights the worst economic performance in a decade and a half.

Price inflation exceeds 40%; public debt increased by twenty percent in six months. Living standards and employment sharply declined. Growth and investment data was negative. Mismanagement, official corruption and arbitrary governance, did not induce confidence among local small and medium size businesses.

The respectable media, led by the New York Times, the Financial Times, the Wall Street Journal and the Washington Post falsified every aspect of Macri’s regime. Failed economic policies implemented by bankers turned cabinet ministers were dubbed long-term successes; crude ideologically driven policies promoting foreign investor profiteering were re-invented as business incentives.

Political thugs dismantled and replaced civil service agencies were labelled ‘a new management team’ by the vulgar propaganda scribes of the financial press.

In Brazil, a phony political power grab by Congressional opportunists ousted elected President Dilma Rousseff. She was replaced by a Washington approved serial swindler and notorious bribe taker, Michel Temer.

The new economic managers were predictably controlled by Wall Street, World Bank and IMF bankers. They rushed measures to slash wages, pensions and other social expenditures, to lower business taxes and privatize the most lucrative public enterprises in transport, infrastructure, landholdings, oil and scores of other activities.

Even as the prostitute press lauded Brazil’s new managers’, prosecutors and judges arrested three newly appointed cabinet ministers for fraud and money laundering. ‘President’ Temer is next in line for prosecution for his role in the mega Petrobras oil contracts scandal for bribes and payola.

The economic agenda by the new managers are not designed to attract new productive investments. Most inflows are short-term speculative ventures. Markets, especially, in commodities, show no upward growth, much to the chagrin of the free market technocrats. Industry and commerce are depressed as a result of the decline in consumer credit, employment and public spending induced by ‘the managers’ austerity policies.

Even as the US and Europe embrace free market austerity, it evokes a continent wide revolt. Nevertheless Latin America’s wave of vassal regimes, remain deeply embedded in decimating the welfare state and pillaging public treasuries led by a narrow elite of bankers and serial swindlers.

Conclusion

As Washington and the prostitute press hail their ‘new managers’ in Latin America, the celebration is abruptly giving way to mass rage over corruption and demands for a shift to the political left.

In Brazil, “President” Temer rushes to implement big business measures, as his time in office is limited to weeks not months. His time out of jail is nearing a deadline. His cabinet of ‘technocrats’ prepare their luggage to follow.

Maurico Macri may survive a wave of strikes and protests and finish the year in office. But the plunging economy and pillage of the treasury is leading business to bankruptcy, the middle class to empty bank accounts and the dispossessed to spontaneous mass upheavals.

Washington’s new managers in Latin America cannot cope with an unruly citizenry and a failing free market economy.

Coups have been tried and work for grabbing power but do not establish effective rulership. Political shifts to the right are gyrating out of Washington’s orbit and find no new counter-balance in the break-up of the European Union.

Vassal capitalist takeovers in Latin America generated publicist anesthesia and Wall Street euphoria; only to be rudely shocked to reality by economic pathologies.

Washington and Wall Street and their Latin America managers sought a false reality of unrestrained profits and pillaged wealth. The reality principle now forces them to recognize that their failures are inducing rage today and uprisings tomorrow.

July 8, 2016 Posted by | Corruption, Economics | , , , , , , , | Leave a comment

Bolivia to Expand Gas Production 33% by 2020 – Energy Minister

Sputnik — 07.07.2016

Bolivia will expand gas extraction by more than 20 million cubic meters daily or more than 33 percent by 2020, Minister of Hydrocarbons and Energy Luis Alberto Sanchez said Thursday.

The discovery of new gas fields was announced jointly by the Spanish company Repsol and the Bolivian state-owned oil and gas company YPFB this February, which increased the country’s gas reserves by 40 percent.

“The total gas production now is approximately 60 million cubic meters per day. By 2020, through putting important projects into operation aimed at preventing a drop of gas fields reserves and guaranteeing supplies to domestic and foreign markets, the production is expected to grow for more than 20 million cubic meters,” Sanchez said as quoted by ABI News Agency.

As of 2013, Bolivia’s gas reserves were estimated at about 302 billion cubic meters. According to the Repsol Bolivia President Diego Diaz, gas deposits on the Caipipendi block are assessed as additional 115 billion cubic meters.

Russian gas giant Gazprom also expressed interest in work in Bolivia. During the St. Petersburg International Economic Forum (SPIEF) in June, Gazprom, Bolivian Ministry of Hydrocarbons and Energy and YPFB signed a road map on the implementation of projects in the country, in particular, exploration, production and transportation of hydrocarbons, as well as the use of the liquefied natural gas (LNG).

July 7, 2016 Posted by | Economics, Phony Scarcity | , | Leave a comment

US Missile Defense Test Failed Miserably, and the Pentagon Lied About It

Sputnik – July 7, 2016

After spending billions of dollars, the US government is having trouble getting its state-of-the-art homeland missile defense system to function according to plan, and it’s driven the Pentagon to lie about the program’s success rate.

On January 28, the Pentagon’s Missile Defense Agency conducted the first test flight of new so-called divert thrusters, to be used on anti-missile interceptors. A military statement deemed this a “successful test flight,” claiming the thrusters allowed the interceptors to stop a mock warhead.

“On this flight, we validated key design improvements in the divert and attitude control system, demonstrating improved performance, reliability and productibility,” said Michael Bright of Aerojet Rocketdyne, maker of the thrusters, in a statement.

“The overall goal of the Missile Defense Agency is to make a more capable and reliable system, and this successful test demonstrated significant progress toward reaching that goal.”

According to the Los Angeles Times, however, these claims were falsified. During the test, one of the thrusters failed. This caused the interceptor to lose control and the mock missile to slip through the defense shield.

“The mission wasn’t successful,” a project scientist, speaking on condition of anonymity, told the LA Times. “Did the thruster perform as expected? No, it did not provide the control necessary for a lethal impact of an incoming threat.”

A second scientist said that claims of success were “hyperbole, unsupported by any test data.”

Other engineers indicated that the faulty thrusters caused the interceptor to miss its target by “a distance 20 times greater than what was expected,” the LA Times reported.

The program, known as Ground-Based Midcourse Defense (GMD), has cost US taxpayers over $40 billion since 2004. It was designed as a means to prevent a potential nuclear attack, and involves 30 interceptors that can be launched from various terrestrial locations across the United States.

The thrusters have come under scrutiny before. Two unsuccessful tests in 2010 were attributed to the component, and ultimately led to the creation of the latest model. An earlier test of the new thrusters occurred in 2013 and resulted in failure.

According to a report from the US Government Accountability Office, these failures were the result of rushed engineering work and “omitting steps in the design process.”

When asked for comment by the LA Times, the Missile Defense Agency acknowledged that problems had occurred during the “successful” test.

“There was an observation unrelated to the new thruster hardware that has been investigated and successfully root-caused,” the agency said. “Any necessary corrective actions will be taken for the next flight test.”

The agency maintained that “the new thrusters performed as designed” and within “critical performance parameters.”

July 7, 2016 Posted by | Deception, Economics, Militarism | | Leave a comment

Imagining a Different Europe: Brexit and the Future of NATO

By Gary Leupp | CounterPunch | July 7, 2016

Everyone’s talking about the future of the European Union after the Brexit. Should we not also be wondering about the future of NATO?

The two organizations substantially overlap. Twenty-two countries are members of both; that is, the twenty-two nations are both military allies of the U.S. (which pays two-thirds of the alliance’s cost and controls its politics) and members of an economic union, which—while it of course does not include the U.S., which is 5000 miles away—is of much interest to the world’s only surviving superpower.

Of course the EU and NATO have very different purposes. As we all know, the EU represents an effort to create a common market throughout the continent, allow for free travel and employment between member-states, the formation of common standards, policies etc. We know there have been major downsides for some member countries, involving reduced sovereignty, uncontrolled immigration, indebtedness and austerity programs, etc. But the stated goal, to spread general affluence, and therefore prevent war, has been stated since the EU’s forerunner, the European Coal and Steel Community, was formed in 1951.

Thus, while it’s arguably none of the U.S.’s business, U.S. leaders express opinions on EU composition. (You might think that, as leaders of a competing trading bloc, with the same relationship to the EU that Boeing has to Airbus, they would maintain a politic silence. But both presidents George W. Bush and Barack Obama have urged the EU to admit NATO ally Turkey’s admission. And Obama recently raised a ruckus in the United Kingdom when he urged its electorate to reject Brexit.)

The purpose of NATO is less clear than that of the EU. Formed in 1949 in line with the “Truman Doctrine” pledging that the U.S. would fight communism wherever it threatened the “Free World,” it was supposed to be a defensive alliance between the U.S. and its European client states versus some future (imagined) Soviet aggression against those states.

That aggression needless to say never happened. In retrospect the Cold War appears a long period of stability, with the exception of the horrific wars the U.S. inflicted on Korea and Vietnam while the Soviets stood aside, and the war the Soviets waged in Afghanistan to suppress the rebels opposed to the secular Soviet-backed government (who were then backed by the CIA, because they were so anti-communist, that being the main thing), who went on to became the Taliban and al-Qaeda.

Europe itself was actually remarkably stable during that Cold War, from 1945 to 1989. Since then there’s been horrific violence, especially in southeastern Europe, much of it exacerbated by the U.S. and NATO.

After the collapse of the Soviet Union and the dissolution of the Warsaw Pact (formed in 1955 in belated response to NATO, after NATO decided to include West Germany) in 1991, you might have thought that NATO would dissolve too. But no; it redefined its mission as maintaining “security” in a newly insecure situation. Its purpose is in fact stated in the vaguest terms. Its real function is to preserve U.S. hegemony over post-Soviet Europe, expand to surround Russia and ultimately create the conditions for a Yugoslavia-type fracturing of the Russian state—which for some reason U.S. military leaders keep referring to as the “number one threat” or even “existential threat” to the U.S.!

How the U.S. Uses the EU

The U.S. attempts to use the EU for its own geopolitical ends, particularly for this confrontation with Russia.

For example: from late 2013 to February 2014 the U.S. State Department spent $5 billion in Ukraine in order to (in the words of Under Secretary of State for Eurasia Victoria Nuland, a former Dick Cheney aide, neocon married to neocon Robert Kagan and key Hillary crony) “support the Ukrainian people’s European aspirations”—meaning the hopes of many Ukrainians for their country to join the EU.

But what Nuland, the Pentagon and NATO leaders in Europe really wanted to do was to pull Ukraine into NATO, completing the creeping encirclement of Russia that had begun with NATO’s expansion to include Poland, Czechoslovakia and Hungary in 1999.

NATO now already includes 11 countries formerly part of the Soviet bloc (Warsaw Pact) or Yugoslavia, most added during Bush’s administration but two (Albania and Croatia) admitted since. In all cases, by the way, these states first received admission into NATO, then into the EU.

Bulgaria: joined NATO 2004, EU 2007

Croatia: NATO 2009, EU 2013

Czechoslovakia: NATO 1999, EU 2004

Estonia: NATO April 2, 2004, EU May 1, 2004

Hungary: NATO 1999, EU 2004

Latvia: NATO April 2, 2004, EU May 1, 2004

Lithuania: NATO April 2, 2004, EU May 1, 2004

Poland: NATO 1999, EU 2004

Romania: NATO 2004, EU 2007

Slovakia: NATO, March 29, 2004, EU May 1, 2004

Slovenia: NATO, March 29, 2004, EU May 1, 2004

Notice a pattern? First a country commits itself to an anti-Russian alliance with the U.S., committing 2% of its GDP to military expenses and pledging to go to war against Russia when called upon to do so. Then it gets access to the benefits of EU membership.

Back to Ukraine. Ukraine in early 2014 included the Crimean Peninsula, home to the Russian Black Sea Fleet from the 1780s, a vital naval port for the Russian state that has only a few warm-water ports. (Crimea had been turned over from the Russian Soviet Socialist Republic to the Ukrainian Soviet Socialist Republic by half-Ukrainian Premier Nikita Khrushchev in 1954. After the break-up of the USSR in 1991, Russia retained its traditional military presence on the peninsula by a treaty with the Ukrainian leaders.)

But the U.S. would like to expel the Russians and make Sevastopol a NATO port. (This is not only Vladimir Putin’s nightmare; it would be a nightmare for any Russian leader. Look at a map.)

In 2013 the president of Ukraine, Viktor Yanukovych, democratically elected in an internationally monitored election in 2010, negotiated with the EU for his country’s eventual entry into the union. A substantial portion of the population, especially in the western part of the country, favored this. But when Yanukovych realized that steps towards admission would involve accepting an austerity regime comparable to that inflicted on Greece, he opted out, instead accepting a generous Russian aid offer.

Nuland & Co. depicted this as a pro-Russian leader’s capitulation to Russian pressure; again, their talking point was “Ukrainian people’s European aspirations.” (In fact, Ukrainians were divided on the issue, with fewer than 50% in favor of EU membership.)

Ukraine is ethnically divided between ethnic Ukrainians (who speak a language related to Russian, although the two languages are not mutually intelligible) and ethnic Russians who have always spoken Russian. (Russian has always been a recognized official language in the country.) There has been much intermarriage between the two, but among the ethnic Ukrainians there are many Russophobes including neo-fascists who glorify Stepan Bandera, an anti-Russian Ukrainian leader who worked with the Nazis to round up Jews and fight the Soviets in 1941.  (He was declared a “national hero” by Yanukovych’s predecessor Viktor Yushchenko, a pro-U.S. advocate of NATO admission. Yanukovych withdrew this award, but it has been reinstated by the current regime.)

Taking advantage of this Russophobia, the U.S. depicted Yanukovych’s change of mind as a betrayal of “European” dreams. Working with the neo-fascist Svoboda Party, among others, it assisted in the brutal putsch of February 22, 2014, that caused the president to flee for fear of his life. A new, pro-NATO government was immediately installed, with Arseniy Yatsenyev as prime minister.

“Fuck the EU!” …and then Use It!

This is where the story gets interesting, because it reveals what the EU means to the U.S., and what it doesn’t. In an intercepted phone conversation between Nuland and the U.S. ambassador to Ukraine a month before the coup, they discuss who will succeed Yanukovych once he’s toppled. She favors NATO proponent “Yats.” The ambassador mentions the the EU favors a different candidate, whom she thinks is inappropriate. They discuss how Yatsenyev will be legitimated by a UN official sent by Ban Ki-moon.

“So that would be great, I think, to help glue this thing and to have the UN help glue it,” she concludes, “and, you know, Fuck the EU.” (In other words, this is not about any European’s aspirations. It’s about ours.)

So the coup comes off as planned. The obviously prominent role of neo-fascists in the new regime, and the immediate revocation of the existing law protecting language rights frightened and angered the primarily Russian inhabitants of the Donbass region (where Yanukovych had his base of support). They refused to accept its legitimacy. (Their resistance is invariably represented by the U.S. press in the service of the State Department as a Moscow-inspired rebellion or even Russian “invasion.”)

Russia refused to recognize the new government and quickly moved to re-annex its historical territory of Crimea. The Russian-majority population of Crimea overwhelmingly voted in a credible referendum to reunite with Russia. The U.S. media often refers to this as another “invasion” although it was nothing of the sort; there were tens of thousands of Russian troops in place by longstanding agreement, who simply secured government buildings and the borders.

Hillary Clinton, among others, likened this move to Hitler’s annexation of the Sudetenland in 1938. That is to say: something that must not meet with appeasement. And so (people are taught to believe), the practical Russian response to U.S. efforts to complete the expansion of NATO is the problem, not NATO’s relentless advance against Russia itself. Russia under Putin is the worrisome aggressor, not the U.S. leaders who invade a new country like clockwork every few years, boasting that they need to do it because theirs is the “exceptional” nation.

Some in the Obama administration favored a military response to the separatists in the east; they wanted to further arm the new regime and encourage it to assert control over the Donbass if not Crimea. It is clear this was the view of U.S. Gen. Philip Breedlove, the “Supreme Allied Commander” of “NATO Allied Command Operations” in Europe. We know from intercepted emails exchanged between him and Nuland (whom he refers to affectionately as “Toria”) that he was frustrated by the failure of Obama to order the Ukrainian puppets to more forcefully invade the east. (Initial efforts to do this had resulted in mass desertions, or soldiers retreated in the face of unarmed citizens including old women shaming them into abandoning their mission. It was a tremendous embarrassment to the Kiev regime.)

Obama decided not to heed Breedlove. In place of hot warfare he chose economic warfare. Here is where the EU comes in. In July 2014 the union (that Nuland wanted to fuck) dutifully voted to impose economic sanctions on Russia. (Again, 22 of the 28 EU members are also NATO members; the only ones that aren’t are Sweden, Finland, Ireland, Cyprus and Malta.)

The U.S. is of course not an EU member but it had a reliable surrogate within the union: the United Kingdom, which has strongly argued for sanctions, their expansion and extension to the present. (Frank Holmes, managing editor of US Global Investors, calls Britain “the bloc’s strongest supporter of restrictions.” The conservative Washington D.C. website The Daily Caller calls it the U.S.’s “strongest E.U. ally against Russia”).

The UK, which had far less to lose from the sanctions than many other EU nations, was urging its partners to shoot themselves in the foot. It was asking them to punish Russia (and damage themselves). The continental Europeans went along, some grudgingly.

Regrets (and Maybe Rebellion?)

Many have come to regret it. The Czech and Hungarian leaders have long been questioning the sanctions and expressing displeasure. Of course they want, as new members of the EU and NATO, to be team players. But their people are suffering from lost trade and pressuring them to protest. Thus Czech President Milos Zeman has called the sanctions “not merely inefficient; on the contrary, they are counterproductive.” (Only 35% of Czechs according to a 2015 Gallop poll support the sanctions.)

Hungarian Prime Minister Viktor Orban calls the sanctions a “risk in the EU… very deep, of a strategic nature.” (European Council president Donald Tusk, a Pole, calls Orban a “Trojan Horse” for Russia while Orban says Tusk is “on the other side” for opposing an easing of sanctions.)

In May, Hungarian Foreign Minister Peter Szijjarto told Russian Foreign Minister Sergey Lavrov that his government “definitely cannot accept that a decision [by the EU, on extending sanctions] was made behind the scenes, that is, we are against using an automatic procedure.” (In Hungary, only 29% of those polled favor the sanctions.)

The Polish regime has been among the most supportive of the U.S. position; anti-Russian sentiment is deep in that country for various historical reasons, and 70% of those polled support sanctions. But the Polish farmers are suffering from them. One-third of the apples harvested in Poland two years ago went to Russia; now the trade is forbidden.

Meanwhile in Spain farmers burn EU flags over piles of rotting peaches to protest the collapse of their relations with the Russian marketplace. The European Commission keeps having to pay out millions of euros to partly compensate farmers and merchants for their losses due to sanctions.

French MPs in April this year voted for a resolution to lift EU sanctions on Russia. Minister of Economy Emmanuel Macros has vowed to work towards lifting them. Italian cabinet ministers and the lawmakers in Italy’s Upper House of Parliament also want to rethink them. Maybe they’re all Trojan Horses, but if so, that’s good.

The role of Germany in the EU, as the most populous and wealthiest country in Europe, is more important than ever following the Brexit. While it has been, along with France, a strong supporter of the sanctions and their continuation, public support is waning. In May a German pollster found that 36% of Germans want the sanctions scaled down, while 35% want them scrapped entirely.

The sanctions have had disastrous impact on the German economy. Since they were imposed exports have declined by about 20 billion euros. Alstom has lost a huge contract for the construction of the Beijing-Moscow railway line. The business community generally wants the sanctions dropped.

There appears to be a general feeling that the U.S. (which is feeling few effects from the sanctions it itself imposed on Russia) pressed the EU (especially through Britain) to take measures that are not in Europe’s interest. And some surely realize that what this is all really about is the U.S.’s desire to punish Russia for thwarting its effort to bring Ukraine into NATO—through that cynical device of Victoria (“Fuck the EU”) Nuland of supporting Ukraine’s “European aspirations.

As it happens, 67% of Germans oppose bringing Ukraine into NATO, and 45% oppose bringing it into the EU. Most importantly, German support for NATO has been plummeting; it was 73% in 2009 but was 55% last year. And when asked whether Germany, in the event of a Russian attack on an east European border state that is a NATO member, should fight on the side of that state, only 38% say yes according to a Spring 2015 Pew poll.

According to the same poll, that figure is 40% in Italy, 47% in France, and 48% in both Poland and Spain. In other words, over half the people of these countries oppose the very nature of NATO as “mutual defense” alliance.

This raises the real possibility of countries leaving NATO, as well as the EU. Czech president Milos Zeman has called for referendums on his country’s membership in both. German Foreign Minister Frank-Walter Steinmeier has criticized the recent joint maneuvers in Poland, in which 14,000 U.S. troops, 12,000 Polish troops, and 800 from Britain participated as “saber-rattling.”

“Whoever believes,” he warns, “that a symbolic tank parade on the alliance’s eastern border will bring security is mistaken. We are well-advised to not create pretexts to renew an old confrontation.” In other words, the U.S. is steering NATO towards war with Russia, which the Germans know is not a good idea.

Who would have imagined a few years ago that the UK would ever leave the EU? Imagine the Czech Republic leaving this confrontational NATO alliance, joining its prosperous neighbor Austria by opting for neutrality. Imagine the Germans (who have many reasons to be angry towards the U.S., including the fact that the NSA spies on all of them) becoming fed up enough to hold their own referendum and quitting the bloc.

There is something of a precedent. France shocked the U.S. when it pulled out of the NATO Integrated Military Command Structures in 1966, in order to, as President Charles DeGaulle put it “preserve French independence in world affairs.” (It remained committed in theory to the defense of alliance members but only rejoined with conditions in 2009.)

France, which has military bases all over the world and deploys troops routinely in Africa and elsewhere (it cooperated with the U.S. in overthrowing Aristide in Haiti in 2004, as if to apologize for having opposed the U.S. war in Iraq), is very different from Germany with its stiff constitutional limits on the use of its military and generally pacifistic population. Within the EU, it is likely to replace the UK as its most important hawkish member, while Germany is likely to urge reconciliation with Russia.

There are contradictions within both the EU and NATO. They are interwoven, and some look irresolvable. That again is a good thing.

July 7, 2016 Posted by | Economics, Militarism | , , , , , , | Leave a comment

Post-Brexit, Is the EU Flaunting Its Undemocratic Tendencies?

By Joyce Nelson | CounterPunch | July 6, 2016

Stung by Brexit, the EU bureaucrats seem intent on showing just how undemocratic they can be. Here are two examples just in the last seven days.

The Glyphosate License

On June 24, EU member states again refused (for a third time this year) to approve a renewal of the license for the weed-killer glyphosate manufactured by Monsanto and other corporations involved in GMO crop cultivation. That should have meant that the license would expire by the end of June, and Monsanto’s Roundup and other glyphosate weed-killers would have to be withdrawn from Europe by the end of this year.

Instead, on June 29 the European Commission (EC) decided “unilaterally” to extend the glyphosate license for another 18 months. [1]

The decision “drew heavy criticism from the Greens in the European Parliament, who said the decision showed the Commission’s ‘disdain’ for the opposition by the public and EU governments to the controversial toxic herbicide.” [2] Belgian Green Member of the European Parliament Bart Staes said, “As perhaps the first EU decision after the UK referendum, it shows the [EC] executive is failing to learn the clear lesson that the EU needs to finally start listening to its citizens again.” [3]

Many were simply shocked that an unelected body of bureaucrats would cater so blatantly to the corporate sector’s last-minute lobbying.

The EC claims that, because of member nations’ indecision on the matter, its own decision about glyphosate was based on assessments made by the European Food Safety Authority (EFSA), prolonging the authorisation until a new scientific review is concluded before the end of 2017, but Greenpeace has called the EFSA study “a whitewash.” [4]

Lawrence Woodward, co-director of Beyond GM, has called the EC’s unilateral decision “reckless.” [5] It comes at the same time that dozens of individuals and organizations have signed an open “Letter from America,” urging European citizens, politicians and regulators to not adopt a “failing agricultural technology” and sharing examples of glyphosate and GMO repercussions across North America. [6]

CETA Ratification

At virtually the same time that the EC made this controversial decision on glyphosate, it made another that is even more undemocratic.

On June 28, a German news agency reported that European Commission President Jean-Claude Juncker told EU leaders the Commission is planning to push through a controversial free trade agreement between Canada and the EU – known as CETA, the Comprehensive Economic and Trade Agreement – without giving national parliaments any say in it. [7] According to the German press, Juncker argued that allowing national parliaments to vote on the agreement would “paralyze the process” and raise questions about the EU’s “credibility.” Juncker claimed that CETA “would fall within the exclusive competence of the EU executive” and therefore doesn’t need to be ratified by national parliaments within the 28-nation bloc, sources in Brussels told the Germany news agency DPA. [8]

Most EU members, however, view CETA as a “mixed” agreement, meaning “that each country would have to push the deal through their parliaments.” [9]

In late June 2016, the EC’s Juncker was reported as saying that he “personally couldn’t care less” whether lawmakers get to vote on CETA. [10]

Millions of Canadians and Europeans have fought against CETA for the past six years. Like the TPP and TTIP, it is a draconian agreement that would hand multinational corporations immense power to overrule elected local governments on numerous fronts. In Canada, CETA was supposed to be voted on by every Canadian provincial and territorial government before any ratification could take place, but in September 2014 (during the reign of Stephen Harper) the CETA deal was signed without there having been any public consultation whatsoever in Canada. The 2014 announcement was also the first time people in Canada and Europe were allowed to see the official text, which had been kept secret during the years of negotiations.

Unfortunately, Canada’s International Trade Minister Chrystia Freeland is enthused about what the EU is doing. According to The Globe and Mail newspaper (July 3), “The British vote to exit the European Union has refocused

Europe’s attention on the need to send a message to the world that liberalized trade is the path to greater prosperity, Ms. Freeland said.” [11]

She also explained that once the European Parliament approves CETA, “a great deal of the agreement would come into force immediately, more than 90 per cent,” she said, “those portions deemed to be within the European Union’s jurisdiction, those go into force right away.” [12]

Freeland told The Globe and Mail that concerns about CETA’s investor-state dispute settlement (ISDS) mechanism – which allows multinational corporations to sue governments over regulations that harm their future profits – had been addressed by a rewrite of the treaty’s investment chapter. [13] But according to Council of Canadians, those changes “actually make [the provisions] worse. The reforms enshrine extra rights for foreign investors that everyone else – including domestic investors – don’t have. They allow foreign corporations to circumvent a country’s own courts, giving them special status to challenge laws that apply equally to everyone through a [private] court system exclusively for their use.” [14]

Prime Minister Justin Trudeau will be in Europe this week for a NATO summit, and officials “say he will lobby hard for other European leaders not to stand in the way of [CETA’s] ratification.” [15]

The Pushback

Reportedly, the pushback in Europe has been immediate, with Germany and France wanting “their national parliaments to be involved” in CETA ratification. On July 5, Deutsche Welle reported that “Juncker appears to be backtracking,” and would propose at a July 5 EC meeting that CETA would require “both the approval of the European parliament and national legislatures.” [16]

The Globe and Mail reported on July 5 that Juncker’s “new recommendation… could call for applying those EU parts of the treaty while the ratification process [by national legislatures] is under way.” [17] That would mean (as Canada’s Chrystia Freeland had earlier explained) more than 90% of CETA could be approved by the EU as part of its “jurisdiction” and needing no national legislative approvals. Such a process would make a mockery of democratic rights on both sides of the Atlantic.

That appears to be what is happening.

Following the July 5 EC meeting in Strasbourg, France, the CBC reported: “Legal opinions advanced by the commission suggest that most of the agreement – perhaps as much as 95 per cent – falls comfortably with the European Union’s jurisdiction… ‘This is an agreement that Europe needs,’ EU trade commissioner Cecilia Malmstrom said in a statement. ‘The open issue of competence for such trade agreements will be for the European Court of Justice to clarify, in the near future. From a strict legal standpoint, the commission considers this agreement to fall under exclusive EU competence. However, the political situation in the council is clear, and we understand the need for proposing it as a ‘mixed’ agreement, in order to allow for a speedy signature’.” [18]

But as nations gear up to wrangle with the EU (in the European Court of Justice) over what parts of the CETA treaty fall within their jurisdiction, and what parts “fall under exclusive EU competence,” the EC could approve 95% of CETA before elected legislatures even vote.

The Council of Canadians warns on its website (July 5): “One important concern to note, ‘The commission may recommend provisionally applying the EU-parts of the Canada deal while full ratification is pending.’ The French newspaper Le Monde has previously reported that even if CETA is deemed to be a ‘mixed’ agreement, the deal could enter into force ‘provisionally’ even before EU member state parliaments vote on it. It notes, ‘If EU ministers agreed at the signing of the CETA on its provisional application, it could come into effect the following month. Such a decision would have serious implications. Symbolically, first because it would send the message that European governments finally [have] little regard for the views of parliamentarians and thus of European citizens strongly against the agreement’.” [19]

Council of Canadians National Chairperson Maude Barlow stated after the EC meeting in Strasbourg, “Like many Canadians, Europeans are worried about CETA’s attacks on democracy, its weakening of social and safety standards, its contribution to privatization and attacks on public services. After the Brexit vote, policy makers on both sides of the Atlantic would be better counseled to listen to voters, rather than pushing discredited [trade] solutions down people’s throats.” [20]

Global Justice Now director Nick Dearden has called CETA a “toxic deal” and says that the way the EC is acting “reinforces the widely held suspicion that the EU makes big decisions with harmful consequences for ordinary people with very little in the way of democratic process,” he said. “Rather than take a step back and question why there is hostility to the EU, they try to speed up this awful trade deal.” [21]

Union members, environmentalists, social activists and “fair trade” groups say CETA is just as dangerous as the proposed Transatlantic Trade and Investment Partnership (TTIP) deal between the EU and the U.S., which hands massive power to multinationals and is a direct threat to democracy on both sides of the Atlantic. The way the EC is handling CETA is a stark clue to what’s in store for TTIP.

Footnotes:
[1] “European Commission Extends Glyphosate License without Real Restrictions,” Sustainable Pulse, June 29, 2016.

[2] Frederic Simon, “EU muddling on glyphosate fuelled Brexit populism,” EurActiv.com, July 1, 2016.

[3] Quoted in ibid.

[4] Ibid.

[5] Katie Pohlman, “Neil Young: Say No to GMOs on ‘Behalf of All Living Things’,” EcoWatch, July 1, 2016.

[6] Quoted in ibid.

[7] “EU Commission Seeks to Push Through Free Trade Agreement with Canada (CETA) without Parliamentary Approval,” Deutsche Welle, June 28, 2016.

[8] Ibid.

[9] Reuters, “EU Commission to opt for simple approval for Canada deal: EU official,” June 28, 2016.

[10] “EU Commission: CETA should be approved by national parliaments,” Deutsche Welle, July 5, 2016.

[11] Robert Fife, “Despite Brexit vote, key EU powers vow to ratify CETA deal,” The Globe and Mail, July 3, 2016.

[12] Ibid.

[13] Ibid.

[14] Council of Canadians, “CETA changes make investor-state provisions worse,” February 3, 2016.

[15] Fife, op cit.

[16] “EU Commission: CETA should be approved by national parliaments,” Deutsche Welle, July 5, 2016.

[17] “EC set to scrap plans to fast-track CETA deal: report,” The Globe and Mail, July 5, 2016.

[18] “Canada gets clarity on how Europe will ratify trade deal,” CBC, July 5, 2016.

[19] Council of Canadians, “CETA to be considered a ‘mixed’ agreement, now more vulnerable to defeat,” July 5, 2016.

[20] Council of Canadians, “CETA vulnerable to defeat: Council of Canadians,” July 5, 2016.

[21] Lamiat Sabin “Brexit ‘Might Not Stop Awful Ceta’,” Morning Star, July 5, 2016.


Joyce Nelson is an award-winning Canadian freelance writer/researcher working on her sixth book.

July 6, 2016 Posted by | Civil Liberties, Economics | , , , , , , | Leave a comment

New Report Exposes EU’s Security Links to Refugee-Creating Arms Dealers

Sputnik | July 6, 2016

Like peace itself, the military-industrial complex sees internal stability as bad for business. A new report has exposed the activities of military and security companies that are profiting from the ongoing conflicts in the Middle East and North Africa, which have also successfully lobbied the EU to react by buying their security equipment.

The joint report by the European NGO Stop Wapenhandel and the Transnational Institute (TNI), called “Border Wars: The Arms Dealers Profiting from Europe’s Refugee Tragedy,” reveals the most prominent winners of security contracts which were issued in Europe as a result of the migrant crisis, and Europe’s acquiescent response to their lobbying.

“Some of the beneficiaries of border security contracts are some of the biggest arms sellers to the Middle-East and North-African region, fuelling the conflicts that are the cause of many of the refugees. In other words, the companies creating the crisis are then profiting from it.”

The big players in Europe’s border security complex include arms companies Airbus, Finmeccanica and Thales, which are also three of the top four European arms traders and have been particularly prominent winners of EU contracts aimed at strengthening borders.

Other companies to benefit from the EU’s policy response to Middle Eastern conflict are French defense and aerospace company Safran, the Spanish IT and defense systems firm Indra Sistemas, and some Israeli companies like BTec Electronic Security Systems, which promote their expertise based on equipment installed at the Israeli-Palestinian border.

French companies Airbus and Thales, and Italian Finmeccanica, are part of the European Organisation for Security (EOS), which has been most active in lobbying the EU for increased border security. The report notes that many of its proposals, such as its push to set up a cross European border security agency, have eventually ended up as policy.

According to the report, the booming border security market was worth an estimated 15 billion euros ($16.5 billion) in 2015, and is predicted to rise to over 29 billion euros ($32 billion) annually in 2022.

New EU member states have been required to strengthen borders as a condition of membership, creating additional markets for profit.

“The arms business, in particular sales to the Middle-East and North-Africa, where most of the refugees are fleeing from, is also booming. Global arms exports to the Middle-East actually increased by 61 per cent between 2006–10 and 2011–15. Between 2005 and 2014, EU member states granted arms exports licenses to the Middle East and North Africa worth over 82 billion euros ($91 billion).”

On Tuesday, the German newspaper Tagesspiegel newspaper revealed that the arms industry could benefit even further from a new direction in the EU’s African policy.

According to the report, the EU Commission intends to direct some funds from its Instrument contributing to Stability and Peace towards equipping African militaries.

The fund was established in March 2014 and has a 2.3 billion euro ($2.5 billion) budget, to be disbursed between 2014 and 2020.

“Development without security and stability is not possible,” a source in the Commission told the newspaper.

“The Commission is therefore considering increasing its support for security actors,” and “in some very special cases,” this will include security forces.

The proposal to spend African development funds on security forces was criticized by the German Green Party MEP Reinhard Butikofer, who described it as “breaking a taboo.”

Die Linke MEP Sabine Losing called the idea “scandalous,” and criticized the “misuse of aid.”

She said the proposal is one of a series of “steps in the militarization of EU foreign policy.”

July 6, 2016 Posted by | Economics, Militarism, War Crimes | , , , , , , , | Leave a comment