After 8 Years of Delay, EPA Finally Agrees to Test Dangers of Monsanto’s Favorite Pesticide
By Steve Straehley | AllGov | June 29, 2015
Glyphosate, which is the active ingredient in Monsanto’s Roundup herbicide, will finally undergo analysis for its effects on endangered species by the Environmental Protection Agency (EPA), thanks to the persistence of the Center for Biological Diversity (CBD).
The group has been trying for eight years to get the EPA to look at glyphosate, along with atrazine and two chemicals similar to atrazine: propazine and simazine. Glyphosate was found two months ago by the World Health Organization’s International Agency for Research on Cancer to be a probable human carcinogen and was banned for sale in garden centers in France earlier this month.
“This settlement will finally force the EPA to consider the impacts of glyphosate—widely known as Roundup—which is the most commonly used pesticide in the United States, on endangered species nationwide,” said Brett Hartl, CBD’s endangered species policy director. “With more than 300 million pounds of this stuff being dumped on our landscape each year, it’s hard to even fathom the damage it’s doing.”
Roundup appears to be responsible for the 90% drop in the number of monarch butterflies in the United States. The butterflies feed on milkweed, which has been just about eliminated because of Roundup use in fields near butterflies’ habitats.
Monsanto spokesman Robb Fraley said Roundup meets standards set by regulatory and health authorities. However, the EPA hasn’t ever taken a close look at glyphosate’s effect on endangered species.
Atrazine chemically castrates frogs and may be linked to increased risks of thyroid cancer, reproductive harm and birth defects in humans, according to CBD. “The EPA should have banned this years ago,” Hartl said. Up to 80 million pounds of atrazine are used each year in the United States on corn, sugarcane and sorghum, as well as lawns and golf courses.
The EPA’s agreement is only the beginning of a long, slow process. The agency has agreed to complete its assessments by 2020.
To Learn More:
Big Win for Environmentalists Will Force EPA to Study Glyphosate (by Elizabeth Warmerdam, Courthouse News Service )
Settlement: EPA to Analyze Impacts of World’s Two Most Widely Used Pesticides on 1,500 Endangered Species (Center for Biological Diversity)
UN Report Links California’s Favorite Herbicide, Monsanto’s Roundup, to Cancer (by Ken Broder, AllGov California )
EPA Sued over Not Protecting Decimated Monarch Butterflies from Monsanto (by Noel Brinkerhoff and Ken Broder, AllGov California )
EPA Approves Rise in Glyphosate Residue for Monsanto’s Herbicide (by Noel Brinkerhoff, AllGov )
New Study Confirms: Sugary Drinks Kill 184,000 People Each Year
By Jake Anderson | ANTIMEDIA | June 30, 2015
According to a new study, the effects of sugary soft drinks are considerably worse than previously thought: they are directly responsible for 184,000 deaths every year. It is the first comprehensive study of the effects of sugar-sweetened beverages (SSBs) on human health, and the results confirm what medical experts have suspected for decades.
Published in the latest volume of the American Heart Association’s Circulation journal, the research implicates sodas, sweetened iced teas, fruit drinks, and sports/energy drinks.
The study is entitled “Estimated Global, Regional, and National Disease Burdens Related to Sugar-Sweetened Beverage Consumption in 2010,” and it affirms that most of the deaths are from complications resulting from diabetes due to the consumption of “sugar-sweetened beverages” (SSBs).
The rest of the fatalities are due to cardiovascular disease and cancer, which are linked to 45,000 and 6,450 annual deaths, respectively.
The study’s author, Dariush Mozaffarian of Tufts University in Boston, says,
“There are no health benefits from sugar-sweetened beverages, and the potential impact of reducing consumption is saving tens of thousands of deaths each year.”
Further, the report states that economic disparity plays a factor, as 76% of the people who died between the years of 1980 and 2010 as a result of consuming sugary drinks lived in low-to-middle income countries.
Mozaffarian goes on to state that the research “indicate[s] the need for population-based efforts to reduce SSB consumption throughout the world through effective health policies and targeted interventions directed at stemming obesity-related disease.”
He conducted the study by comparing 62 dietary surveys from over 611,000 people in 51 countries over the course of 30 years. While the health effects of sodas, energy drinks, and other sugary beverages have long been suspected of dire health consequences, we now have definitive evidence that they are directly responsible for 184,000 deaths annually.
Moscow Halts Gas Supplies as Kiev Suspends Russian Gas Purchases
RT | July 1, 2015
Gazprom has confirmed the suspension of gas supplies to Ukraine from 10:00am MSK on July 1. Russia’s gas monopoly will not supply gas to Kiev without prepayment, no matter what price, said company CEO Aleksey Miller on Wednesday.
After trilateral Russia-EU-Ukraine gas talks in Vienna failed on Tuesday, Ukraine’s Naftogaz reported it would cease purchases of Russian gas starting from Wednesday as it didn’t agree on the price. The three parties gathered in Vienna to discuss the terms of the gas deal for the next three months as the previous ‘summer package’ expired.
The Ukrainian company stressed that Kiev would continue gas transit to Gazprom’s customers in Europe “in accordance with the existing transit contract”.
Russia offered Ukraine a discount of $40 per thousand cubic meters on Monday. The price of Russian gas with the discount was $247.18 per 1,000 cubic meters. The same price Ukraine bought gas in the second quarter.
However, Naftogaz refused to sign the deal, saying Kiev was dissatisfied with the price and the discount.
Ukraine’s wish to get more than a 40 percent discount is “groundless”, Russia’s Energy Minister Aleksandr Novak told Rossiya 24 TV channel on Wednesday.
The $100 discount Kiev is asking for, worked when the price neared $495 per 1,000 cubic meters, said Novak.
Ukraine’s decision to halt gas purchases from Russia is politicized, not justified by economic reasons, he added.
Last week, Russian President Vladimir Putin said Moscow could no longer provide generous gas discounts to Kiev due to low crude oil prices in the world.
On April 1, 2015 Russia and Ukraine signed a ‘summer package’, deal on gas supplies for the second quarter. The agreement replaced a similar ‘winter package’ signed at the end of October, 2014.
Russia switched Ukraine to prepayment terms last summer after the country’s ‘chronic’ failure to pay its massive debt. Naftogaz paid Gazprom $247.18 per 1,000 cubic meters of gas. The price included a $100 discount.
READ MORE:
Russia prices gas for Ukraine at $247, cuts discount
Russia can’t give another gas discount to Kiev; price should match Poland’s – Putin
The General Dynamics, Saudi Arabia contract and Canada’s moral regress
By Mitchell Thompson | Disinformation | June 28, 2015
With the case of the Canadian-brokered General Dynamics light armored vehicle sale to the Saudi Arabian government, Canada’s manufacturing sector has become complicit in human rights abuses abroad.
The question of benefit could be framed like this: is General Dynamics employing more people than its equipment is killing?
The Globe and Mail reported that Ed Fast, Canada’s Minister of International trade said, the deal will help the manufacturing area in London to “become the epicentre of a cross-Canada supply chain directly benefiting more than 500 local Canadian firms… Our government will continue to support our exporters and manufacturers to create jobs, as part of our government’s most ambitious pro-trade, pro-export plan in Canadian history.”
That export plan, justified by job-creation involves the sale of light armoured vehicles, manufactured in Canada that the Globe and Mail describes as having “effective firepower to defeat soft and armored targets… options for mounted guns include a 25-mm cannon and 7.62-mm machine guns and smoke grenade launchers.”
The Ottawa Citizen reports that:
“Canada’s defence industry has beaten out German and French competitors to win a massive contract worth at least $10 billion US to supply armoured military vehicles to Saudi Arabia.
The win was announced by International Trade Minister Ed Fast to cheering workers Friday at a factory in London, Ont., and will go a long way in bolstering the Harper government’s case for transforming Canada into a global arms dealer.
But it also raises many ethical questions that will continue to surface as Canada’s arms industry turns more and more to the volatile Middle East and South America for business.
Canada has previously sold light armoured vehicles (LAVs) like those used by Canadian soldiers in Afghanistan to Saudi Arabia, with more than 1,000 delivered to the Middle Eastern kingdom in the early 1990s, and 700 more in 2009.
But the government is touting this latest deal as the largest export contract in Canadian history, with the potential to create and sustain 3,000 jobs in southern Ontario and other parts of the country.
Exactly how many LAVs are being sold to Saudi Arabia was not being revealed, but documents filed in the U.S. by General Dynamics Land Systems – Canada, whose London-based subsidiary will be building the vehicles, put the contract at between $10 billion and $13 billion.
Defence and export industry representatives praised the Conservative government Friday for its role in securing the deal.”
The job creation argument that Canada is using stands even more oddly next to the moral cost of the deal, given Saudi Arabia’s human rights record.
Alex Nieve, Secretary General of Amnesty International told the Globe that “[The Saudi government is] known to use armoured vehicles and other weapons in dispersing peaceful protest.”
Jonathan Manthorpe writes for IPolitics that “The Saudi regime is buying these vehicles not to defend the nation from foreign threats, but to protect the regime from Saudis — from internal dissent and demands for reform.”
Hillary Homes of Amnesty told the Globe that “[Saudi Arabia] is among the worst human-rights violators in the world.”
Canada’s support of the Saudi abuse is bad enough, what’s worse is its insistence that working Canadians become participants. The government says it wants this sort of arms manufacturing as the epicentre of a cross-Canada supply chain with connections to over 500 firms. Is that really something Canada wants as an epicentre of any part of its economy?
Let’s consider what that means. If the epicentre of a sector of the manufacturing industry is dependent on the manufacturing of equipment for a third world dictatorship, continued economic progress for that sector would require that government to use that equipment. Canadians would have an interest in the Saudi Arabian government using its old equipment, so it can buy new equipment, made in Canada.
If Amnesty and others are correct, that the equipment that we manufacture will likely be used against civilians and a sector of our economy depends on that manufacturing- that means that a sector of our economy would be dependent on those abuses.
There are good people working in manufacturing. Having their work emanate from third world dictatorships perverts the entire sector. Working people should not be forced to participate in such an exchange, to remain economically viable.
China, India, Russia largest shareholders in China-led bank
The BRICS Post | June 29, 2015
Fifty countries on Monday signed the articles of agreement for the new China-led Asian Infrastructure Investment Bank, the first major global financial instrument independent from the Bretton Woods system.
Seven remaining countries out of the 57 that have applied to be founding members, Denmark, Kuwait, Malaysia, Philippines, Holland, South Africa and Thailand, are awaiting domestic approval.
“This will be a significant event. The constitution will lay a solid foundation for the establishment and operation of the AIIB,” said Chinese Finance Minister Lou Jiwei.
The AIIB will have an authorized capital of $100 billion, divided into shares that have a value of $100,000.
BRICS members China, India and Russia are the three largest shareholders, with a voting share of 26.06 per cent, 7.5 per cent and 5.92 per cent, respectively.
Following the signing of the bank’s charter, the agreement on the $100 billion AIIB will now have to be ratified by the parliaments of the founding members.
Asian countries will contribute up to 75 per cent of the total capital and be allocated a share of the quota based on their economic size.
Chinese Vice Finance Minister Shi Yaobin said China’s initial stake and voting share are “natural results” of current rules, and may be diluted as more members join.
Australia was first to sign the agreement in the Great Hall of the People in Beijing on Monday, state media reports said.
The Bank will base its headquarters in Beijing.
The Chinese Finance Ministry said the new lender will start operations by the end of 2015 under two preconditions: At least 10 prospective members ratify the agreement, and the initial subscribed capital is no less than 50 per cent of the authorized capital.
The AIIB will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan.
China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank (ADB).
China is grouped in the ‘Category II’ voting bloc at the World Bank while at the Asian Development Bank, China with a 5.5 per cent share is far outdone by America’s 15.7 per cent and Japan’s 15.6 per cent share.
The ADB has estimated that in the next decade Asian countries will need $8 trillion in infrastructure investments to maintain the current economic growth rate.
China scholar Asit Biswas at the Lee Kuan Yew School of Public Policy, Singapore, says Washington’s criticism of the China-led Bank is “childish”.
“Some critics argue that the AIIB will reduce the environmental, social and procurement standards in a race to the bottom. This is a childish criticism, especially because China has invited other governments to help with funding and governance,” he writes.
The US and Japan have not applied for the membership in the AIIB.
However, despite US pressures on its allies not to join the bank, Britain, France, Germany, Italy among others have signed on as founding members of the China-led Bank.
Meanwhile, New Zealand and Australia have already announced that they will invest $87.27 million and $718 million respectively as paid-in capital to the AIIB.
The new lender will finance infrastructure projects like the construction of roads, railways, and airports in the Asia-Pacific Region.
Iran, 49 states sign Asia bank charter
Press TV June 29, 2015
Iran on Monday joined 49 countries in signing up to the Asian Infrastructure Investment Bank (AIIB), bringing Asia’s largest financial lender a step closer to existence.
Finance and Economy Minister Ali Tayebnia put Iran’s signature to the bank’s articles of association at a ceremony in Beijing’s Great Hall of the People, which capped six months of intense negotiations.
In April, China accepted Iran as a founding member of the Asian Infrastructure Investment Bank being seen as a rival to the US-led World Bank, the International Monetary Fund (IMF) and the Asian Development Bank.
With the signing which amounted to the creation of AIIB’s legal framework, China’s Finance Minister Lou Jiwei said he was confident the bank could start functioning before the end of the year.
Seven more founding members would ink the articles after approval by their respective governments.
The bank will have a capital of $100 billion in the form of shares, each worth $100,000, distributed among the members. Beijing will be by far the largest shareholder at about 30%, followed by India at 8.4% and Russia at 6.5%.
China will also have 26% of the votes which are not enough to give it a veto on decision-making, while smaller members will have larger voice.
Singapore’s Senior Minister for Finance and Transport Josephine Teo said the bank will provide new opportunities for its members’ businesses and promote sustainable growth in Asia.
Seventy-five percent of AIIB’s shares are distributed within the Asian region while the rest is assigned among countries beyond it.
Germany, France and Brazil are among the non-Asian members of the bank despite US efforts to dissuade allies from joining it. Another US ally joining AIIB is Australia but Japan has stayed away from it.
Countries beyond the region can expand their share but the portion cannot be bigger than 30%. Public procurement of the AIIB will be open to all countries around the world.
But the president of the bank will have to be chosen from the Asian region for a maximum of two consecutive five-year terms.
The bank will be headquartered in Beijing and its lean structure will be overseen by an unpaid, non-resident board of directors which, architects say, would save it money and friction in decision-making.
Earlier this month, former Federal Reserve chairman Ben Bernanke rebuked US lawmakers for allowing China to found the new bank, which threatens to upend Washington’s domination over the world economic order.
He said lawmakers were to blame because they refused to agree 2010 reforms that would have given greater clout to China and other emerging powers in the International Monetary Fund.
Wisconsin Government to Garnish the Wages of Poor People to Fund New Sports Arena
By Justin Gardner | The Free Thought Project | June 29, 2015
Milwaukee, WI — Wisconsin governor Scott Walker may be the darling of mainstream Republicans for next year’s presidential election, but “less taxation, less government” is an illusion under his current tenure. Milwaukee residents will soon be forced to pay an extra 15% tax surcharge that will go toward public financing of a new sports arena, under a plan put together by this champion of limited government.
The 15% surcharge will apply to Milwaukee County residents who are behind on their property taxes or court fines. Walker’s sports arena plan calls for the state to take over the collection of Milwaukee County’s old debt and use it to help pay for half the cost of a new arena for the Milwaukee Bucks.
This blatant example of extortion and public-private cronyism is troubling to Milwaukee County Supervisor John Weishan Jr.:
“To think we would put the squeeze on someone because they didn’t pay a parking ticket and their only crime is being poor and unable to pay it, and then taking that money and giving it to people who are extremely wealthy, doesn’t sit well with me.”
Wisconsin state, unlike county government, has the power to garnish wages and intercept other income such as tax refunds. Citizens will be powerless to stop the state from taking their money so their government can go into partnership with sports moguls on a fancy new spectacle. The cost to Wisconsin taxpayers—whether or not they care about the arena—will be $400 million after accounting for interest.
Government’s interest in using major televised sports as a public distraction is no secret, hearkening to the Roman days of bread and circus. In May, we reported how NFL teams are paid millions of dollars by the U.S. Department of Defense for nationalistic propaganda. The appeals to emotion in furtherance of patriotism serve two purposes—entrenching corporatism and stifling dissent of military hegemony.
Back in Wisconsin, Walker and his team are salivating at the prospect of taking over debt collection in Milwaukee. Nearly $77 million is owed to the county courts, most of it older than five years. The surcharge would mean an extra burden of $11.5 million on citizens, and would cover 4.6% of the public’s obligation toward Walker’s sports arena.
While Governor Walker and his team withhold details of the plan under the guise of “finalizing legislative language,” they are drumming up support among lawmakers and telling Republican senators to avoid making critical comments.
They’re working hard to suppress public dialog while PR experts couch the plan in Orwellian terms.
“There is a cost to collecting debt. The cost is now borne by the county. The benefit of this program is that the burden falls on the people who can afford to pay this debt,” said bureaucrat Teig Whaley-Smith.
Another spokesperson, Laurel Patrick, said the 15% surcharge is standard procedure, so why should anyone care? “Unpaid debts impact others who do pay their bills, fines, etc. on time, and are now paying more than they otherwise would need to for those government services and programs.”
The likelihood that this tax increase will be mentioned as Walker and other presidential hopefuls parade about next year, wrapped in the flag and false concern for the people, is little to none. We can expect the usual bread and the usual circus.
The Greek Debt Crisis and Crashing Markets
By MICHAEL HUDSON | CounterPunch | June 29, 2015
Back in January upon coming into office, Syriza probably could not have won a referendum on whether to pay or not to pay. It didn’t have a full parliamentary majority, and had to rely on a nationalist party for Tsipras to become prime minister. (That party balked at cutting back Greek military spending, which was 3% of GDP, and which the troika had helpfully urged to be cut back in order to balance the government’s budget.)
Seeing how unyielding the opposition was, Syriza’s stance was: “We would like to pay. But there’s no money.”
This kept throwing the ball back into the troika’s court. The Institutions were so unyielding that Syriza’s approval rating in the polls rose by 13% by June. Greek voters became increasingly incensed at the Troika’s demand for further pension cuts and privatizations.
Tsipras and Varoufakis were willing to pay the IMF with the IMF’s own funds, in what V. called “extend and pretend.” But their only interest in keeping current on debt was to obtain additional funding that could be used to pay domestic pensions and other basic government budgetary expenditures.
The basic tactic in such tensions between creditors and debtors is clear: once debt repayments exceed new loans, stop paying.
So when The Institutions made it clear that no more credit would be forthcoming without Syriza adopting the old Pasok/New Democracy capitulation to Troika demands, Tsipras and Varoufakis decided it was time to call a referendum eight days hence, on Sunday, July 5.
Late Friday night and into the early Saturday morning hours, Greeks ran to the ATM machines to convert their checking and savings deposits into euro notes, expecting that the end game would involve a likely 30% depreciation of the drachma – and that indeed, the ECB would stop lending to support Greek banks (the only role the ECB wanted to play).
Syriza had no love for the banks. They were the vehicles through which the oligarchs controlled the Greek economy, after all. For a month, they had been discussing how to separate the banks into “good bank” and “bad bank,” either nationalizing them (wiping out stockholders) or creating a Public Option alternative.
Most important, once out of the eurozone, Greece could create its own Treasury to monetize its spending. The Institutions called this “scrip,” but the Greeks could establish it as their national currency. They would escape from euro-austerity – except, of course, to the extent that the ECB waged economic war on Greece by imposing its own capital controls.
By going through the sham negotiations with The Institutions, Syriza gave Greeks enough time to protect what savings and cash they had – by converting these bank deposits into euro notes, automobiles and “hard assets” (even boats).
Businesses borrowed from local banks where they could, and moved their money into eurozone banks or even better, into dollar and sterling assets. Their intention is to pay back the banks in depreciated drachma, pocketing a 30% capital gain.
What commentators miss is that Syriza (at least its left) wants to be transformative. It wants to free Greece from the post-military oligarchy that evades taxes and monopolizes the economy. And it wants to transform Europe, away from ECB austerity to create a real central bank. In the process, it demands a clean slate of past bad debts. It wants to reject the IMF’s austerity philosophy and refusal to take responsibility for its bad 2010-12 bailout.
This larger, transformative picture is at the center of Syriza-left plans.
I’m in Germany now (on my way to Brussels), and have heard from Germans that the Greeks are lazy and don’t pay taxes. There is little recognition that what they call “the Greeks” are really the oligarchs. They have gained control of the old coalition Pasok/New Democracy parties, avoided paying taxes, avoided being prosecuted (New Democracy refused to act on the “Lagarde List” of tax evaders with nearly 50 billion euros in Swiss bank accounts), orchestrated insider dealings to privatize infrastructure at corrupt prices, and used their banks as vehicles for capital flight and insider lending.
This has turned the banks into vehicles for the oligarchy. They are not public institutions serving the economy, but have starved Greek business for credit.
So one casualty apart from the credibility of the eurozone, the ECB and the IMF will be these banks. Syriza is positioning itself to provide a public option – public banks that will promote the economy, and a national Treasury that will spend government money INTO the economy, not drain it to pay the Troika for having bailed out French and other banks back in 2010-1.
The European popular press is as bad as the U.S. press in describing matters. It warns of “hyperinflation” if a central bank monetizes as much as one euro of government spending in the way that the U.S. Fed does, or the bank of England or any other real central bank. The reality is that nearly all hyperinflations stem from a collapse of foreign exchange as a result of having to pay debt service. That was what caused Germany’s hyperinflation in the 1920s, not domestic German spending. It is what caused the Argentinean and other Latin American hyperinflations in the 1980s, and Chile’s hyperinflation earlier.
But once Greece frees itself from the odious debts forced upon it at financial gunpoint in 2010-12, its balance of payments will be roughly in balance (subject to some depreciation of the drachma; 30% is a number I heard bandied about in Athens last week).
To mimic Margaret Thatcher, “There is No Alternative” to withdrawing from the eurozone. The terms dictated for remaining in it was to sell off all of what remained in Greece’s public sector to European and U.S. buyers, at insider prices – but not to Russian buyers, even for the gas pipeline that was to have been sold.
Evidently the eurozone financial strategists thought that Tsipras and Varoufakis would simply surrender, and be promptly voted out of power, thereby crushing their socialist policy agenda. They miscalculated – and are now hoping to create as much anarchy as possible to punish the Greek people. The punishment is for not continuing to support their client oligarchy, which has moved most of its assets out of reach of the government.
But instead of Syriza losing credibility, it is the ECB – which refuses to create money to finance economic recovery, but only to pay the oligarchs’ banks so that they can continue to control the government. This control is now being weakened precisely because their banks are being weakened.
Greece’s Parliament last week released its Debt Truth Commission report explaining why Greece’s debts to the IMF and ECB are odious, and were taken on without a popular referendum approving these loans. Indeed, Mrs. Merkel and Mr. Sarkozy obeyed Mr. Obama and Geithner when the latter insisted at a G8 meeting that the ECB ignore the IMF economists’ analysis that Greece could not pay its debts, and bail out the banks. Geithner and Obama explained that U.S. banks had placed big financial bets that Greece would pay its private bondholders, so the ECB and IMF had to lend the government the funds to pay – but had to overthrow the country’s Prime Minister Papandreou who had urged a referendum on whether Greek people really wanted to commit economic and political suicide.
Financial technocrats were put in place to serve the domestic oligarchy and foreign bondholders. Greece was under financial attack just as deadly as a military attack. Finance is war. That is this week’s lesson.
And for the first time, debtor countries are realizing that they are in a state of war.
This is why markets are crashing on Monday, June 29.
* * *
Eurozone financial strategists made it clear that they wanted to make an example of Syriza as a warning to Spain’s Podemos party, and anti-euro parties in Italy and France. The message was supposed to have been, “Avoid our austerity and we will cause chaos. Look at Greece.”
But the rest of Europe is interpreting the message in just the opposite way: “Remain in the eurozone and we will only create money to strengthen the financial oligarchy, the 1%. We will insist on budget surpluses (or at least, no deficits) so as to starve the economy of money and credit, forcing it to rely on commercial banks at interest.”
Greece has indeed become an example. But it is an example of the horror that the eurozone’s monetarists seek to impose on one economy after another, using debt as a lever to force privatization sell offs at distress prices.
In short, finance has shown itself to be the new mode of warfare. Resisting debt leverage and financial conquest is as legal as is resisting military invasion.
Michael Hudson’s book summarizing his economic theories, “The Bubble and Beyond,” is now available in a new edition with two bonus chapters on Amazon. His latest book is Finance Capitalism and Its Discontents. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, published by AK Press. He can be reached via his website, mh@michael-hudson.com
Russia, China Deepen Win-Win
By F. William Engdahl – New Eastern Outlook – 29.06.2015
It’s scarcely a day passes that there isn’t some fascinating new development bringing Russia and China closer in peaceful economic cooperation. The most recent such development involves what must be described as a win-win development in which Russia has agreed to lease prime Siberian agriculture lands to a Chinese company for the coming fifty years. It fits beautifully to plans for the development of the world’s largest infrastructure project, the planned New Silk Road Economic Belt, a network of new high-speed railway lines criss-crossing Eurasia from China to Mongolia to Russia and beyond ultimately to the EU.
The Chinese government officials in recent years are very fond of talking about “win-win” developments in business and politics. Now a genuine win-win development is emerging for both China and Russia in Siberia near the borders of Mongolia and China in the region known since 2008 as Zabaikalsky krai or region.
The region has a very sparse population of just over 1 million Russians on a land area of some 432,000 square kilometers. It also holds some of the richest, most fertile farmland in the world. China for its part is hurt by increasing desertification, water problems and other pressures on its food production security. China also has population and money to invest in worthwhile projects, something the more remote regions of the Russian Federation have had serious deficits of during the Cold War and especially since the destructive Yeltsin years.
Now the government of Zabaikalsky krai has signed a 49-year lease agreement with China’s Zoje Resources Investment together with its daughter company Huae Sinban to lease 115,000 hectares or just under 300,000 acres of Russian farmland to China. The Chinese company will invest more than 24 billion rubles for development of agricultural sector in the region, to produce agricultural products for Russian and Chinese markets. Plans are to grow fodder, grain and oilseeds as well as to develop poultry, meat and dairy products production in Russia’s Baikal region.
The project will be divided into two stages. If the first stage is successfully completed by 2018, the Chinese company will be given a lease on a second parcel of land bringing the total to 200,000 hectares. For Russia and the region it will be a win. The lands where the project will start have not been farmed for almost 30 years and to make the land suitable again for farming will require the labor of as many as 3,000 hands. Also significant is that the Chinese company had to compete for the land deal with several other Chinese companies as well as companies from South Korea, New Zealand and even from the United States.
Wang Haiyun, senior advisor at the Chinese Institute for International Strategic Studies, called the deal an example of the developing trust between the two countries, according to an article from the Chinese newspaper Huanqiu Shibao. He noted that the fact that Russian authorities agreed to lease such an immense territory for 49 years to a Chinese company proves Moscow has no ideological prejudice towards Beijing.
China-Russia Agriculture Fund
The latest land lease deal in Zabaikalsky krai follows other positive developments in agriculture cooperation between Russia and China. This past May Russia’s state Direct Investment Fund head, Kirill Dmitriev, announced that RDIF, the Russia-China Investment Fund and the government of China’s Heilongjiang province have agreed on the creation of a special investment fund for agriculture projects. The fund will total some $2 billion and be funded by primarily money of institutional Chinese investors, including those with significant experience in investment in the agricultural sector, Dmitriev added. He said that the agreement on the creation of a joint investment bank will help attract Chinese capital to Russia and make it easier for Russian companies to enter China’s markets. China’s Heilongjiang Province is to the east of Zabaikalsky krai.
Silk roads to golden goals
The China-Zabaikalsky krai agriculture agreement is merely the initial step of what will become a major infrastructure and industrial development of the now-remote underdeveloped Siberian region. Zabaikalsky krai is one of the richest regions in all Russia. Russia’s largest known deposit of copper at Udokanskoye in the region has resources of 20 million tons. On June 3 at the Sochi SP1520 annual international railways forum, Russian Railways president Vladimir Yakunin announced that the Russian Copper Company, a joint venture by Russian Railways Public Company, UMMC, and Vnesheconombank, had applied for development of the Udokanskoye copper deposit, confirming that Russia is thinking very strategically about its development in the region.
In addition the region is rich in gold, molybdenum, tin, lead, zinc and coal. Its crops are today wheat, barley and oats. The region is amply blessed with fresh water and flowing rivers.
At the same time Beijing has announced it is creating a huge $16 billion fund to develop gold mines along the rail route linking Russia and China and Central Asia. One major obstacle to date to exploitation of Russia’s vast agriculture and mineral riches has been availability of modern infrastructure to bring the products to market. Contrary to Harvard University or George Soros “shock therapy” free market theories, markets are not “free.”
At the September, 2014 meeting of the Shanghai Cooperation Organization in Dushanbe, at the request of the Mongolian president, China’s Xi, Russia’s Putin and Mongolia’s Tsakhiagiin Elbegdorj agreed to integrate Beijing’s Silk Road Economic Belt initiative with Russia’s transcontinental rail plan and Mongolia’s Prairie Road program, to jointly build a China-Mongolia-Russia economic corridor.
That could turn Mongolia into a “transit corridor” linking the Chinese and Russian economies. Mongolia is larger than Japan, France and Spain together. The three are discussing issues of traffic interconnectivity, how to facilitate cargo clearance and transportation, and the feasibility of building a transnational power grid.
Eurasian Economic Birth
The potential of the recent economic cooperation agreements between the two great Eurasian nations, Russia and China, is without question the most promising economic development in the world today. As US sanctions forced Russia to turn increasingly to its eastern neighbor, China, US military provocations against China in the East China Sea and elsewhere forced China to completely rethink its own strategic orientation. Developing their land connections in a vast economic space is emerging as the result. As the ancient Chinese saying goes, every crisis contains new opportunities if viewed so.
Beijing has discussed building various Eurasian rail ties for several years but in the past eighteen months since the beginning of the Presidency of Xi Jinping it has assumed highest priority, especially the construction of the New Silk Road Economic Belt. President XI has made that Silk Road project the cornerstone of his presidential term. In the meeting of Xi on May 8 in Moscow with Russian President Putin, the two presidents signed a joint declaration “on cooperation in coordinating development of EEU and the Silk Road Economic Belt,” with both declaring their goal to coordinate the two projects in order to build a “common economic space” in Eurasia, including a Free Trade Agreement between the EEU and China. Chinese Foreign Minister Wang Yi recently stated that the trade turnover between China and Russia is likely to reach $100 billion in 2015. The future prospects, with construction of the network of high-speed railways, is staggering.
Markets, all markets, are man-made, products of deliberate or not so deliberate decisions of individuals and usually of governments. The creation of what could become a multi-trillion dollar economic space spanning the vast Eurasian land is moving forward in a beautiful way. The China-Russia agriculture land leasing is a sign that Russia is opening a new qualitative phase in these developments.
In the world of mathematics win-win is referred to as a “non-zero sum game” in which there is typically a matrix of multiple payouts for all participants. That seems to be emerging across the vast Eurasian expanse far faster than anyone could have imagined even two years ago.
‘Nonsense’: Norway PM lashes out at NATO spending goals
RT | June 29, 2015
The prime minister of Norway, Erna Solberg has described NATO’s defense spending plans as “nonsense.” The alliance wants members to spend two percent of their GDP on defense, but Oslo, one of the world’s richest countries, says it won’t meet the target.
“If I am allowed to speak, I think the percentage goal is nonsense,” she said in an interview with the Norwegian Armed Forces’ Forum Magazine, as cited by the Local. “The aim of the NATO countries must be the greatest possible defense capability, not a percentage goal in itself,” she added.
Solberg added that while meeting the two percent target may be easier for countries enjoying strong economic growth, it would be harder for those within the alliance whose economies are shrinking.
Norway’s Defense Minister Ine Eriksen Soreide said in April that for Oslo to spend 2 percent of its GDP on defense would be “very challenging” in the short term. The Scandinavian country has already said it will increase its spending this year, but this will only bring it to around 1.6 percent and short of the target that was set at the NATO summit in Cardiff, the United Kingdom, last year.
NATO’s General Secretary Jens Stoltenberg, who was also Solberg’s predecessor as Norway’s PM, said that the country could easily meet the target.
“If there is a political will, there is economic space. But it must be given priority,” he said in a visit to Norway in June. “Compared with other major initiatives we have implemented in Norway, reaching two percent is quite possible.”
Aside from the United States, traditional NATO allies have found meeting the target a taxing affair. Germany allocates 1.2 percent of its GDP, the Netherlands 1.3 percent and Spain less than 1 percent. France is the only Western European country that is boosting defense spending. However, some Eastern European nations are increasing their military expenses citing what they call Russian aggression. Lithuania, for instance, wants to allocate twice as much on defense as it did last year.
READ MORE: NATO defense spending a ‘red line’ – US Air Force Secretary
“Sewer Socialist” Bernie Sanders’ Anti-Russian Propaganda
By Caleb Maupin – New Eastern Outlook – 28.06.2015
The presidential campaign of Bernie Sanders — an anti-Russia, Israel-supporting politician from Vermont — revives an archaic feud among leftists. The old debate about “sewer socialism” is back.
In the early part of the 20th century, there was a broad movement of people in the United States who advocated the overthrow of capitalism. Among them were many revolutionaries like Eugene Debs, William Z. Foster, Lucy Parsons, and Paul Robeson.
However, there was another current of people who called themselves “socialists” but had no interest in revolution. They were called “sewer socialists.” The term originated in reference to Victor L. Berger, a “socialist” who ran on a platform of improving the city’s sewer system and eventually became the mayor of Milwaukee. The sewer socialists did not want to overthrow capitalism, but simply to be elected to local public office and improve government policy. They wanted to make a global system built on exploitation of people all over the world a little more comfortable for those living within the western economic centers.
The battle between these two poles of the left movement – with the revolutionary and anti-imperialist wing of socialism on the one hand and the “sewer socialist” wing on the other — played out on a global level. Commenting on the debate, Russian socialist revolutionary Vladimir Lenin described the trend this way: “The bourgeoisie of an imperialist ‘Great’ Power can economically bribe the upper strata of ‘its’ workers by spending on this a hundred million or so francs a year, for its superprofits most likely amount to about a thousand million… this little sop is divided among the labour ministers, ‘labour representatives’… labour members of War Industries Committees… labour officials, workers belonging to the narrow craft unions…”
In the modern United States, it isn’t sewer socialism but “Vermont socialism” that plays the role of the ‘Labor Ministers.’ US Senator Bernie Sanders is running for president, and openly describes himself as a “socialist.” Despite using this word to describe himself, with many well intentioned anti-capitalist activists supporting him, Sanders’ platform in reality articulates a strategy for strengthening global monopoly capitalism and its expanding militarism.
Big Oil’s Campaign Against Russia
Currently, Wall Street is doing all it can to suppress Russia, a rising competitor on the global markets. US oil and natural gas corporations in particular want to attack and isolate the Russian Federation, as hydraulic fracking floods the market and drives down oil prices and profits. As Russia stabilizes and expands, continuing to export more and more natural gas, big business desperately needs to purge the country’s oil from the global market.
In service of the western oil and natural gas cartels, US agents overthrew the democratically elected government of Ukraine. The orgy of street violence in Kiev that deposed Yanukovich was conducted with the direction of the CIA and billions of dollars in US funding. In Ukraine, the intervention of the United States has pushed a formerly peaceful country into civil war and installed a fanatically anti-Russian government. Russia now faces a hostile, US-aligned regime directly on its doorstep. Civil war is unfolding as the peoples of eastern Ukraine have taken up arms against it.
US-funded terrorists are waging a campaign of death and destruction in Syria, another Russian-aligned country. Hundreds of thousands have already been killed. The US and its allies in Turkey, Saudi Arabia, and Jordan continue to pour money into the so-called “Free Syrian Army” — a group that openly tortures, kidnaps, and beheads innocent people, and has a history of collaborating with ISIS.
Despite giving demagogic anti-corporate speeches, Sanders brags that he is even more in line with big oil’s anti-Russia campaign than President Obama. “The entire world has got to stand up to Putin. We’ve got to deal with sanctions, we’ve got to deal with freezing assets,” he declared in a TV interview with FOX news host Bill O’Reilly.
In the same interview, he declared: “You’ve got to totally isolate them politically. You’ve got to totally isolate them economically… You freeze assets that the Russian government has all over the world… International corporations have huge investments in Russia, you could pull them out…”
A “Socialist” who Loves War and Israel
Sanders is very much a friend of the military industrial complex. In his home state of Vermont, Sanders “rarely misses a photo opportunity with Vermont National Guard troops when they are being deployed to Afghanistan or Iraq.” While criticizing Bush’s invasion of Iraq, Sanders consistently votes for the massive US military budget. In fact, Sanders is vocally very supportive of Obama’s drone strikes program, and has worked to bring US military research corporations into his home state to set up facilities.
As a highly rated ally of the American-Israeli Public Affairs Committee, Sanders has consistently voted and spoken out in support of Israel. When criticized for it, he often replies with standard Israel lobby talking points, saying things like, “Hamas is sending missiles into Israel… some of those missiles are coming to populated areas…” Other than vaguely saying that Israel may have “overreacted,” he blatantly supports and defends Israeli military policy.
Sanders openly believes that the Palestinian resistance to Israeli occupation is “terrorism,” and that the existence of a “Jewish state” on Palestinian land is somehow ethical. In his 2013 interview with Playboy, he declared: “The Palestinians must fulfill their responsibilities to end terrorism against Israel and recognize Israel’s right to exist.”
A Friend of the Rising Police State
As a loyal ally of military corporations, he not only supports their war against people in Ukraine, Syria, and Palestine, but also their profitable activities at home. Big business is making huge profits from a prison industrial complex as well as the rapid expansion of the role of police in US society. As police patrol the halls of elementary schools, and “stop and frisk” people on the streets without probable cause, it is young African-Americans who are their primary targets.
Sanders has never been an opponent of the prison industrial complex or the rising incidents of police violence. In Michael Moore’s 2009 film “Capitalism: A Love Story,” Moore interviewed Sanders and asked him to explain what it meant to be a socialist. Sanders responded with a vague, populist rant in which he portrayed the police as victims: “We’ve become very religious in worshipping greed. We put on the front pages of magazines guys who have made millions of dollars, we ignore the cops… who every day are doing so much in improving the lives of people.”
More recently, in response to the massive uprising against police brutality and mass incarceration in the United States, Sanders has declared: “Look, the issue here is…. I was a mayor for eight years, and being a cop is a very, very difficult job. But the word has got to get out that when police act inappropriately, and of course in this case there has to be a thorough investigation.” Sanders gives standard, Obama-style talking points on the issue, saying he supports “body cameras” and wants more community cooperation and involvement with police departments.
Inevitably, whenever the issue of police brutality is raised, Sanders changes the subject to economics. In response to the Baltimore uprising after the killing of Freddie Grey, Sanders declared, without ever even mentioning Grey’s name: “In the neighborhood where this gentleman lives, as I understand it, the unemployment rate is over 50 percent, over 50 percent. What we have got to do as a nation is understand that we have got to create millions of jobs, to put people back to work, to make sure that kids are in schools, and not in jails…. so they’re not hanging out on street corners.”
No one can deny that unemployment is a huge problem, especially for Black and Brown communities in the United States. However, Eric Garner wasn’t choked to death by a bill collector. The direct issue at hand is the fact that police officers have essentially been given a “license to kill” by the courts, and routinely face no penalty after blatantly and intentionally killing people of color.
By diverting the conversation to economics and not calling out the police in harsh terms, and then using racially loaded phrases like “hanging out on street corners,” Sanders is essentially saying: “If only Black people had more economic opportunities, they wouldn’t be worthless, low-life criminals who the police have to kill.”
A Bigger Slice of Empire?
Often Bernie Sanders is asked what it means to be a socialist. He does not respond with a call for public management of the economy, “workers’ control of the means of production,” a workers and farmer’s government, or any of the definitions of “socialism” used by socialists historically. Instead, he talks about Norway, Sweden, and other US-aligned imperialist countries. He emphasizes that these countries have a national health service, and provide free university education. […]
Sanders’ political viewpoint, based on his experience of decades in governing his home state — where only 1.2% of the population is Black — has been: “If we give white middle class Americans a bigger slice of the pie, they will be far more willing to line up with Wall Street against Russia, China, Iran, and the Palestinians.”
Lenin accurately described leaders like Sanders as “opportunists and social-chauvinists,” saying, “They are defending the temporary privileges of a minority of the workers…” Back in 1916, Lenin urged his followers to “go down lower and deeper, to the real masses… teach the masses to appreciate their true political interests, to fight for socialism and for the revolution.”
The following year, Lenin and the Bolsheviks were victorious. Capitalism, along with its mischievous and demagogic defenders like Bernie Sanders, was overthrown in Russia. That was nearly 100 years ago. How this battle will play out among 21st-century leftists remains to be seen.
Caleb Maupin is a political analyst and activist based in New York. He studied political science at Baldwin-Wallace College and was inspired and involved in the Occupy Wall Street movement.
Argentine court orders seizure of Falklands/Malvinas ‘illegal’ oil drillers’ assets
RT | June 28, 2015
Argentina has ordered the seizure of assets belonging to foreign drilling companies operating in the vicinity of Falklands / Malvinas Islands, saying they have failed to obtain the necessary permissions from Buenos Aires to conduct exploration.
A federal judge in Tierra del Fuego, Lilian Herraez, has ordered authorities to seize the assets of five companies drilling for oil in the Falklands worth $156 mn. The measure was ordered following a request of a prosecutor from the Office of Economic Crime and Money Laundering (PROCELAC).
According to the prosecution, the order to seize assets was issued for “illegal activities of exploration, search and eventual extraction of hydrocarbons in proximity to the Falkland Islands” because the companies in question failed to obtain permits issued by “the competent authority in Argentina.”
According to a legal brief, the order involves halting the activities of the semi-submersible “Eirik Raude” rig and the floating dock“Noble Frontier”. Herraez also ordered the seizure of all vessels.
The five companies mentioned are: Premier Oil Plc, Rockhopper Exploration Plc, Falkland Oil and Gas Ltd, Noble Energy Inc and Edison International Spa. Three of them are UK based, one is American and the fifth is French-owned, based in Italy.
It remains unclear how these companies’ assets are supposed to be appropriated from territory officially under the jurisdiction and sovereignty of the United Kingdom. The companies in question do not generally hold any assets in Argentina or use Argentine waters, a source told Reuters.
However, the Argentine prosecutor’s office said it “had identified the assets of the foreign companies and discovered that one of them, the US firm Noble Energy, has a local office registered in Argentina.” Authorities will move to freeze those assets, it said.
“The foreign ministry will be notified of the court order so that by diplomatic means and in compliance with international treaties it can be carried out,” the prosecutor’s office said in a statement.
In April, a group of British exploration companies found oil and gas in an area north of the Falkland Islands. The oil was discovered by the Eirik Raude floating drilling rig as part of an eight month exploration campaign. Argentina has predictably not been happy about the exploration activity, which is bound to further inflame tensions over the island’s disputed ownership.
In Argentina, the Falkland Islands are known as the ‘Islas Malvinas.’ The dispute between the UK and Argentina over the sovereignty of the islands has reemerged in recent years under President Cristina Fernandez de Kirchner.
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From the Archives
The Forgotten Terrorist Pretext of the Vietnam War
By Jim Bovard | The Libertarian Institute | February 16, 2023
Since 9/11, terrorism has become the ultimate entitlement program for America’s political elite. Whether it is illegally spying on Americans or blowing Somali dissidents to pieces, invoking terrorism provides all the cover needed for Washington policymakers. But the disastrous results of granting politicians a blank check to fight terrorism should have been undeniable almost 60 years ago.
Back in the 1960s, terrorism was what the communists did. Anti-terrorist moral fervor and ideological blinders propelled the U.S. into its biggest foreign policy blunder since World War II. … continue
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