Visa, MasterCard Freeze Cards at Sanctioned Russian Banks
RIA Novosti | March 21, 2014
MOSCOW – US-based Visa Inc. and MasterCard Inc. have stopped processing payments by cardholders at Russian banks targeted by the United States for financial sanctions on Thursday, a number of Russian banks said Friday.
The news signaled the first impact on ordinary Russian citizens by a series of Western sanctions against Russia over the ongoing situation in Ukraine, the greatest geopolitical showdown between Russia and the West since the end of the Cold War.
Earlier sanctions had been restricted to targeting high-level officials.
Several banks reported that customer cards were being declined for payment and that they had received no advance notification of the changes. Customer deposits remained unaffected.
Visa confirmed Friday that it had blocked cards issued by four Russian banks for use on its payment network for online or retail purchases.
Visa said the list of the banks facing sanctions announced by the US Treasury on Thursday includes Rossiya Bank, SMP Bank, Sobinbank and Investcapitalbank, the latter two being part of Rossiya Bank.
“The management of Rossiya Bank understands the difficulties experienced by clients in this situation, and assures them that everything possible is being done to help,” Rossiya Bank said in a statement on its website.
The bank added that customers could still withdraw cash from the bank’s ATMs without difficulties, as well as those owned by partner banks.
Sobinbank said that its call centers had been swamped by customers who were abroad and suddenly found their cards were not working.
SMP Bank is majority owned by brothers Arkady and Boris Rotenberg, who were both named on the US sanctions list.
“All other operations, including the issuance of deposits and making payments remain unaffected and without any restrictions,” SMP Bank said in a statement, adding that it has no assets in the United States.
The US and EU announced asset freezes and travel bans targeting a number of Russian officials close to Putin on Monday, following a referendum in Crimea that saw voters overwhelmingly support reunification with Russia after 60 years as part of Ukraine.
Those lists were expanded – including the addition of Rossiya Bank to the US list – following the ratification of the reunification treaty by Russia’s lower house of parliament Thursday.
Russian President Vladimir Putin warned earlier this month that sanctions against Russia threatened to cause mutual damage in the modern, integrated global economy.
Leaders in Crimea refused to recognize the legitimacy of the government in Kiev that came to power amid often violent protests last month, instead seeking reunification with Russia.
Violence and Terror: The Ukrainian and Colombian Road to Empire Building
By James Petras | The People’s Voice | March 19, 2014
Introduction
The two paths to 21st century empire-building-via-proxies are illustrated through the violent seizure of power in the Ukraine by a US-backed junta and the electoral gains of the US-backed Colombian war lord, Alvaro Uribe. We will describe the ‘mechanics’ of US intervention in the domestic politics of these two countries and their profound external effects – that is how they enhance imperial power on a continent-wide basis.
Political Intervention and Proxy Regimes: Ukraine
The conversion of the Ukraine into a US-EU vassal state has been a prolonged process which involved large scale, long term financing, indoctrination and recruitment of cadres, organization and training of politicos and street fighters and, above all, a capacity to combine direct action with electoral politics.
Seizing power is a high stakes game for empire: (1) Ukraine, in the hands of clients, provides a NATO with a military springboard into the heart of the Russian Federation; (2) Ukraine’s industrial and agricultural resources provide a source of enormous wealth for Western investors and (3) Ukraine is a strategic region for penetrating the Caucuses and beyond.
Washington invested over $5 billion dollars in client-building, mostly in ‘Western Ukraine’, especially in and around Kiev, focusing on ‘civil society groups’ and malleable political parties and leaders. By 2004, the initial US political ‘investment’ in regime change culminated in the so-called ‘Orange Revolution’ which installed a short-lived pro-US-EU regime. This, however, quickly degenerated amidst major corruption scandals, mismanagement and oligarchical pillage of the national treasury and public resources leading to the conviction of the former-Vice President and the demise of the regime. New elections produced a new regime, which attempted to secure ties with both the EU and Russia via economic agreements, while retaining many of the odious features (gross endemic corruption) of the previous regime. The US and EU, having lost thru democratic elections, relaunched their ‘direct action organizations’ with a new radical agenda. Neo-fascists seized power and established a dictatorial junta through violent demonstrations, vandalism, armed assaults and mob action. The composition of the new post-coup junta reflected two sides of the US-backed political organizations: (1) neo-liberal politicos for managing economic policy and forging closer ties with NATO, (2) and neo-fascists/violent nationalists to impose order by force and fist, and crush pro-Russian Crimean ‘autonomists’ and ethnic Russians and other minorities, especially in the industrialized south and east.
Whatever else may ensue, the coup and the resultant junta is fully subordinated to and dependent on the will of Washington: claims of Ukrainian ‘independence’ notwithstanding. The junta proceeded to purge the elected and appointed government officials affiliated with the political parties of the previous democratic regime and to persecute its supporters. Their purpose is to ensure that subsequent managed elections will provide a pretense of legitimacy, and elections will be limited to two sets of imperial clients: the neo-liberals, (self-styled “moderates”) and the neo-fascists dubbed as “nationalists”.
Ukraine’s road to imperialist power via a collaborator regime illustrates the various instruments of empire building: (1) the use of imperial state funds, channeled through NGOs, to political front groups and the build-up of a ‘mass base’ in civil society; (2) the financing of mass direct action leading to a coup (‘regime change’); (3) the imposition of neo-liberal policies by the client regime; (4) imperial financing of the re-organization and regroupment of mass direct action groups after the demise of the first client regime; (5) the transition from protest to violent direct action as the major backdrop to the extremist sectors (neo-fascists) organizing the seizure of power and purge of the opposition; (6) organizing an ‘international media campaign’ to prop up the new junta while demonizing domestic and international opposition (Russia) and (7) political power centralized in the hands of the junta, convoking “managed elections” limited to the victory of one or the other pro-imperial pro-junta candidates.
In summary, empire-builders operate on several/levels: violent and electoral; social and political; and with selected incumbents and rivals committed to one strategic aim: the seizure of state power and the conversion of the ruling elite into willing vassals of empire.
Columbia’s Deathsquad Democracy: Centerpiece of the Imperial Advance in Latin America
In the face of a continent-wide decline of US influence in Latin America, Colombia stands out as a constant bulwark of US imperial interests: (1) Colombia signed a free trade agreement with the US; (2) provided seven military bases and invited thousands of US counter-insurgency operatives; and (3) collaborated in building large-scale paramilitary death squads prepared for cross border raids against Washington’s arch enemy Venezuela.
Colombia’s ruling oligarchy and military have been able to resist the wave of massive democratic, national and popular social upheavals and electoral victories that gave rise to the post-neo-liberal states in Brazil, Argentina, Venezuela, Ecuador, Bolivia, Paraguay and Uruguay.
While Latin America has moved toward ‘regional organizations’ excluding the US, Colombia strengthened its ties to the US through bilateral agreements. While Latin America reduced its dependence on US markets, Colombia expanded its commercial ties. While Latin America reduced their military ties to the Pentagon, Colombia tightened them. While Latin America moved toward greater social inclusion by increasing taxes on foreign multinational corporations, Colombia lowered corporate taxes. While Latin America expanded land settlements for its landless rural populations, Colombia displaced over 4 million peasants as part of the US-designed ‘scorched earth’ counter-insurgency policy.
Colombia’s “exceptional” unwavering submission to US imperial interests is rooted in several large-scale, long-term programs developed in Washington. In 2000, President ‘Bill’ Clinton committed the US to a $6 billion dollar counter-insurgency program (Plan Colombia) which greatly increased the brutal repressive capacity of the Colombian elite to confront the popular grass roots movements of peasants and workers. Along with arms and training, US Special Forces and ideologues entered Colombia to develop military and paramilitary terror operations – aimed primarily at penetrating and decimating political opposition and civil society social movements and assassinating activists and leaders. The US-backed Alvaro Uribe, notorious narco-trafficker and the very personification of a ruthless imperial vassal, became president over a ‘Death-Squad Democracy’.
President Uribe further militarized Colombian society, savaged civil society movements and crushed any possibility of a popular democratic revival, such as were occurring throughout the rest of Latin America. Thousands of activists, trade unionists, human rights workers and peasants were murdered, tortured and jailed.
The ‘Colombian System’ combined the systematic use of para-militarism (death squads) to smash local and regional trade union and peasant opposition and the technification and massification of the military (over 300,000 soldiers) in fighting the popular insurgency and ‘emptying the countryside’ of rebel sympathizers. Large-scale multi-billion dollar drug trafficking and money laundering formed the ‘financial glue’ to cement a tight relationship among oligarchs, politicos, bankers and US counter-insurgency advisers – creating a terrifying high-tech police state bordering Venezuela, Ecuador and Brazil – countries with substantial popular mass movements.
The same state terror machinery, which decimated the pro-democracy social movements, has protected, promoted and participated in ‘stage-managed elections’, the hallmark of Colombia as a “death squad democracy”.
Elections are held under a vast overlapping network of military bases, where death squads and drug traffickers occupied towns and villages intimidating, terrorizing and ‘corrupting’ the electorate. The only ‘safe’ protest in this repressive atmosphere has been voter abstention. Electoral outcomes are pre-ordained: oligarchs never lose in death squad democracies, they are the empire’s most trusted vassals.
The cumulative effects of the decade and a half-long bloody purge of Colombian civil society by Presidents Uribe and his successor, Santos, have been to eliminate any consequential electoral opposition. Washington has achieved its ideal: a stable vassal state; a large-scale and obedient military; an oligarchy tied to US corporate elites; and a tightly-controlled ‘electoral’ system that never permits the election of a genuine opponent.
The March 2014 Colombian elections brilliantly illustrate the success of US strategic intervention in collaboration with the oligarchy: The vast majority of the electorate, over two-thirds, abstained, demonstrating the absence of any real legitimacy among the eligible voters. Among those who ‘voted’, ten percent submitted ‘spoiled’ or blank ballots. Voter abstention and ballot-spoilage was especially high in the rural regions and working class areas which had been subject to state terror.
Given the intense state repression, the mass of voters decided that no authentic pro-democracy party would have any chance and so refused to legitimize the process. The 30% who actually voted were largely urban middle and upper class Colombians and residents in some rural areas completely controlled by narco-terrorists and the military where ‘voting’ may have been ‘compulsory’. Of a total of 32 million eligible voters in Colombia, 18 million abstained and another 2.3 million submitted spoiled ballots. The two dominant oligarchical coalitions led by President Santos and ex-President Uribe received only 2.2 million and 2.05 million votes respectively, a fraction of the number who abstained (14 million). In this widely scorned electoral farce, the center-left and left parties made a miserable showing. Colombia’s electoral system puts a propaganda veneer on a dangerous, highly-militarized vassal state primed to play a strategic role in US plans to “reconquer” Latin America.
Two decades of systematic terror, financed by a six-billion dollar militarization program, has guaranteed that Washington will not encounter any substantial opposition in the legislature or presidential palace in Bogota. This is the ‘acrid, gunpowder-tinged smell of success’ for US policymakers: violence is the midwife of the vassal state. Colombia has been turned into the springboard for developing a US-centered trade bloc and a military alliance to undermine Venezuela’s Bolivarian regional alliances, such as ALBA and Petro Caribe as well as Venezuela’s national security. Bogota will try to influence neighboring right and center-left regimes pushing them to embrace of the US Empire against Venezuela.
Conclusion
Large-scale, long-term subversion and organization in Ukraine and Colombia, as well as the funding of paramilitary and civil society organizations (NGO) has enabled Washington to: (1) construct strategic allies, (2) build ties to oligarchs, malleable politicians and paramilitary thugs and (3) apply political terrorism for their seizure of state power. The imperial planners have thus created “model states” – devoid of consequential opponents and ‘open’ to sham elections among rival vassal politicians.
Coups and juntas, orchestrated by longstanding political proxies, and highly militarized states run by ‘Death Squad Executives’ are all legitimized by electoral systems designed to expand and strengthen imperial power.
By rendering democratic processes and peaceful popular reforms impossible and by overthrowing independent, democratically elected governments, Washington is making wars and violent upheavals inevitable.
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James Petras is a Bartle Professor (Emeritus) of Sociology at Binghamton University, New York. He is the author of 64 books published in 29 languages, and over 560 articles in professional journals, including the American Sociological Review, British Journal of Sociology, Social Research, Journal of Contemporary Asia, and Journal of Peasant Studies.
Resurgent Chilean Social Movements Advance Cross-Border Solidarity
By Emily Achtenberg | Rebel Currents | March 14, 2014
On March 11, newly elected President Michelle Bachelet began her inaugural speech by acknowledging her debt to the social movements that propelled her center-left New Majority coalition to victory, on a radical platform that has transformed Chile’s political landscape. Even as they continue to shape the domestic political agenda, activist students, trade unionists, and other civil society and political organizations are also mobilizing to build cross-border solidarity, pressuring Bachelet to ally with other leftist governments in the region.
On February 15, the militant University of Chile Student Federation (FECH)—fresh on the heels of forcing the ouster of Bachelet’s newly-appointed education undersecretary and her replacement with a more politically compatible designee—issued a strong statement critical of Venezuelan students who have spearheaded ongoing protests against the Chavista government of Nicolás Maduro. “We don’t feel represented by the actions of Venezuelan student sectors that are defending the old order, in opposition to the path that the people have defined,” the statement read in part.
Demonstrating at the Venezuelan embassy, representatives of FECH and other student federations emphasized that the middle-class Venezuelan students, unlike their Chilean counterparts, are not demanding educational or other social reforms. Rather, student leaders explained, they are mobilizing against the Chavista government which has advanced the goals of free, public education and democratization of the university, the very issues that Chilean students are fighting for.
To be sure, FECH’s stance is opposed by Chile’s Young Christian Democrats (JDC), student organizations from some private universities, and other dissident factions, who have urged support for the protesters. Some groups, such as the Student Federation of Catholic University (FEUC), have called for protection of Venezuelan students’ rights, while stopping short of endorsing their demands.
The split mirrors divisions within the New Majority coalition itself. Under pressure from FECH and allied student organizations, Bachelet has publicly supported Maduro and the people of Venezuela, calling on all sides to seek a peaceful and democratic resolution to the conflict, while leading Christian Democrats accuse the Venezuelan government of criminalizing and repressing dissent. The recent assassination of a 47-year old Chilean citizen in Venezuela, a Chavista supporter and mother of four, has heightened domestic tensions over the issue. Still, the majority of student organizations continue to emphasize (to both Chilean and foreign media) that their movement has little in common with Venezuela’s student protests.
Following Bachelet’s inaugural ceremony, some 5,000 representatives of student, trade union, community, indigenous, and other civil society organizations assembled at the Teatro Caupolicán in Santiago to welcome Bolivian President Evo Morales with the slogan “Mar para Bolivia!” (“The sea for Bolivia!”). The issue of regaining coastal territory lost to Chile in the 1879 War of Pacific, which left Bolivia landlocked, has long been a rallying point for Bolivia and is now a crusade for the Morales government.
Last year, Morales filed a lawsuit with the International Court of Justice in The Hague, demanding that Chile negotiate in good faith to provide Bolivia with sovereign access to the Pacific. Morales argues that the 1904 Peace Treaty signed by the two countries was imposed under duress, and should be scrapped or modified. On economic grounds, Bolivia claims that its landlocked status has reduced its GNP by more than $30 billion since 1970, while the mineral-rich ceded territory (now the site of some of the world’s biggest copper mines) has made Chile the wealthiest country in South America.
The dispute has strained relations between the two countries for decades. Ironically, former dictators Augusto Pinochet and Hugo Banzer were on the brink of an agreement in 1975, which derailed when Pinochet demanded territorial compensation from Bolivia in exchange for granting it a sea corridor. A 13-point bilateral agenda developed by Morales and Bachelet during her first term in 2006 was sidelined by her conservative successor, Sebastián Piñera.
Recent efforts to resume dialogue with Bolivia have been spearheaded by Chilean social sectors and political activists. Last April, 57 civil society groups, including the Workers United Center of Chile (CUT, the major national trade union federation) and indigenous Mapuche organizations, signed a letter demanding that Piñera offer Bolivia a constructive proposal. Former Progressive Party presidential candidate Marco Enríquez-Ominami, who placed third in the first-round election, visited Morales last month to convey Chilean solidarity and pave the way for the post-inaugural encounter.
Former student leader and newly elected Communist Party congressional deputy Camila Vallejo has been a leading voice pressing the Bachelet government to re-engage with Bolivia. “It’s not about giving away a gift,” she emphasizes. “Bolivia has significant energy (gas) resources and we are, supposedly, in an energy crisis. Why not have a politics of integration and mutual solidarity?”
To the consternation of many, Bachelet—bowing to conservative pressures—announced the day after her inauguration that Chile will not negotiate Bolivia’s sea access while the matter is pending before the International Court. For his part, Morales has refused to abandon Bolivia’s legal claims, leaving civil society activists with a significant role to play in the continuing controversy .
Finally, last December more than 50 Chilean civil society leaders, 15 senators, and 37 congressional deputies signed a public declaration demanding a halt to negotiations on the Trans-Pacific Partnership (TPP), a U.S.-led trade initiative involving a dozen Pacific Rim nations. Activists are demanding increased transparency, as well as protections from trade rules that could undermine national sovereignty over intellectual property rights, access to medicine, capital flow management, and other crucial matters. Bachelet, a strong supporter of free trade, is also an advocate of national sovereignty. Her campaign manager (now finance minister) Alberto Arenas has indicated his support for civil society’s position.
As Bachelet struggles to manage competing ideological tensions within her own New Majority coalition, continuing pressure from Chile’s resurgent social movements on these and other cross-border issues will be critical in positioning Chile within Latin America’s growing political divide.
Related article
Despite Obama Statements, Justice Dept. Ranked Mortgage Fraud as Low Priority
By Noel Brinkerhoff | AllGov | March 17, 2014
The U.S. Department of Justice (DOJ) has treated mortgage fraud cases as a low priority, even though President Barack Obama promised to crack down on such crimes in the wake of the 2008 financial crisis.
DOJ also greatly exaggerated its success in prosecuting mortgage fraud, according to an investigation by the department’s Office of the Inspector General (IG).
Attorney General Eric Holder Jr. declared four years ago that mortgage fraud crimes had “reached crisis proportions,” and promised his agency would be “fighting back” in response.
But the IG’s report (pdf) shows the Federal Bureau of Investigation (FBI) put mortgage fraud at the bottom of its criminal priority list—after receiving extra funding ($196 million from the 2009 to 2011) to address this problem. In some major cities, mortgage fraud wasn’t even on the FBI’s radar as any kind of a priority.
“Despite receiving significant additional funding from Congress to pursue mortgage fraud cases, the FBI in adding new staff did not always use these new positions to exclusively investigate mortgage fraud,” the report states.
A “significant backlog of unaddressed and pending mortgage fraud investigations” was disclosed by supervisors interviewed by IG investigators. In fact, important fraud cases were completely shut down by the FBI, not due to a lack of resources, but because the Bureau’s resources were diverted to other operations that were given higher priority, according to the report.
Just as disturbing was the fact that Justice inflated its numbers to make it appear prosecutors were doing more than they actually were.
In 2012, Holder announced his lawyers had charged 530 people during the previous year with mortgage fraud that had cost homeowners more than $1 billion.
In truth, the numbers were more like 107 people charged in cases totaling only $95 million, the IG found. Even after the figures were proven to be incorrect, the DOJ continued to cite the false statistics for nearly a year.
“The inspector general’s report sheds light on what looks like an attempt by the Justice Department to pull the wool over the public’s eyes with respect to its efforts to go after the wrongdoers involved in mortgage fraud,” Senator Charles Grassley (R-Iowa), the ranking member on the Senate Judiciary Committee, said in a statement. “According to the inspector general, the department wasted time cooking the numbers about the cases it pursued, when it should have been prosecuting cases.”
The IG offered numerous recommendations to the department, most of which involved fixes to DOJ’s recordkeeping system that had produced such inaccurate figures.
The Justice Department objected to the IG’s conclusions, citing prosecutors doubling the number of mortgage fraud indictments from 2009 to 2011.
“The facts regarding the department’s work on mortgage fraud tell a much different story than this report,” Ellen Canale, a department spokeswoman, told The New York Times. “As the report itself notes, even at a time of constrained budget resources, the department has dedicated significant manpower and funding to combating mortgage fraud.”
Mortgage fraud—through falsification of documents by lenders and brokers—was one of the catalysts of the 2008 financial collapse. Fraud involving mortgage-backed securities, said to be larger in scope and also a contributing factor to the collapse, is considered by the FBI to be securities fraud and was not addressed by the IG report.
To Learn More:
U.S. Criticized for Lack of Action on Mortgage Fraud (by Matt Apuzzo, New York Times)
Mortgage Fraud Efforts Fell Short, Justice Department Inspector General Concludes (by Jeffrey Benzing, Main Justice)
Audit of the Department of Justice’s Efforts to Address Mortgage Fraud (U.S. Department of Justice, Inspector General) (pdf)
Justice Dept. Sues Bank of America over Prime Mortgage Fraud (by Noel Brinkerhoff, AllGov)
Big Banks Slither out of Mortgage Fraud Review with Minor Costs (by Noel Brinkerhoff, AllGov)
How to rob a bank: William Black
TEDx Talks | March 3, 2014
William Black is an associate professor of economics and law at UMKC. He has held many prestigious positions, including executive director for Fraud Prevention. He recently helped the World Bank develop anti-corruption initiatives and served as an expert for OFHEO in its enforcement action against Fannie Mae’s former senior management. He is a criminologist and former financial regulator.
KPFA interviews:
Guns and Butter | April 4, 2012
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“Formula For Fraud” with William K. Black from the first Italian economic Summit on Modern Money Theory in Rimini, Italy. How to become a billionaire – the four necessary ingredients in the recipe for fraud; the three sure consequences of banking control fraud; gutting of the underwriting process; Gresham’s Law; The Business Roundtable; hyperinflation of a bubble. – link
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Guns and Butter | February 29, 2012
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“The Greatest Bank Robbery Ever” with William K. Black. Banks, intensifying financial crises; money manager capitalism; sovereign currency; crony capitalism; theoclassical economists; control fraud, Commodities Future Modernization Act of 2000; S&L Liars’ Loan Crisis of 1990-91; Reinventing Government Movement; deregulation, desupervision and defacto decriminalization; fraud incentives; looting; subprime; Enron; Parmalat; BofA; Citigroup; Ameriquest; Washington Mutual; systemically dangerous institutions; Financial Accounting Standards Board (FASB); faux stress tests; European austerity crisis; Mario Draghi, President of the ECB. – link
What A Destructive Wall Street Owes Young Americans
By Ralph Nader | March 14, 2014
Wall Street’s big banks and their financial networks that collapsed the U.S. economy in 2008-2009, were saved with huge bailouts by the taxpayers, but these Wall Street Gamblers are still paid huge money and are again creeping toward reckless misbehavior. Their corporate crime wave strip-mined the economy for young workers, threw them on the unemployment rolls and helped make possible a low-wage economy that is draining away their ability to afford basic housing, goods, and services.
Meanwhile, Wall Street is declaring huge bonuses for their executive plutocrats, none of whom have been prosecuted and sent to jail for these systemic devastations of other peoples’ money, the looting of pensions and destruction of jobs.
Just what did they do? Peter Eavis of the New York Times provided a partial summary – “money laundering, market rigging, tax dodging, selling faulty financial products, trampling homeowner rights and rampant risk-taking – these are some of the sins that big banks have committed in recent years.” Mr. Eavis then reported that “regulators are starting to ask: Is there something rotten in bank culture?”
The “rot” had extended long ago to the regulators whose weak laws were worsened by weak enforcement. Veteran observer of corporate criminality, former Texas Secretary of Agriculture and editor of the Hightower Lowdown newsletter, Jim Hightower writes:
“Assume that you ran a business that was found guilty of bribery, forgery, perjury, defrauding homeowners, fleecing investors, swindling consumers, cheating credit card holders, violating U.S. trade laws, and bilking American soldiers. Can you even imagine the punishment you’d get?
How about zero? Nada. Nothing. Zilch. No jail time. Not even a fine. Plus, you get to stay on as boss, you get to keep all the loot you gained from the crime spree, and you even get an $8.5 million pay raise!”
Hightower was referring to Jamie Dimon, the CEO of JPMorgan Chase, “the slick CEO who has fostered a culture of thievery during his years as a top executive at JPMorgan, leading to that shameful litany of crime.”
Shame? Dimon doesn’t know how to spell it. “I am so damn proud of this company. That’s what I think about when I wake up every day” he said in October, 2013.
Millions of young Americans (called Millennials, between ages 18 and 33) should start agitating through demonstrations, demand petitions and put pressure on the bankers and members of Congress. First the plutocrats and their indentured members of Congress should drop their opposition to a transaction tax on Wall Street trading. A fraction of a one percent sales tax on speculation in derivatives and trading in stocks (Businessweek called this “casino capitalism”) could bring in $300 billion a year. That money should go to paying off the student debt which presently exceeds one trillion dollars. Heavy student debt is crushing recent graduates and alarming the housing industry. For example, people currently between the ages of 30 to 34 have a lower percentage of housing ownership than this age group has had in the past half century.
A Wall Street transaction tax was imposed in 1914 and was more than doubled in 1932 to aid recovery from the Great Depression before it was repealed in 1966. But the trading volume then was minuscule compared to now with computer-driven trading velocity. A tiny tax – far less than state sales taxes on necessities – coupled with the current huge volume of trading can free students from this life-misshaping yoke of debt.
Some countries in Europe have a securities transaction tax and they also offer their students tuition-free university education to boot. They don’t tolerate the same level of greed, power and callous indifference to the next generation expressed by the monetized minds of the curled-lipped Wall Street elders that we do.
What about young people who are not students? The Wall Street tax can help them with job-training and placement opportunities, as well as pay for tuition for technical schools to help them grow their skills.
A good many of the thirty million Americans stuck in a wage range lower than the minimum wage in 1968, adjusted for inflation, (between $7.25 and $10.50) are college educated, in their twenties and thirties, and have no health insurance, no paid sick leave and often no full-time jobs.
A youth movement with a laser-beam focus, using traditional forms of demonstration and connecting in person, plus social media must come down on Wall Street with this specific demand. Unfortunately, while Occupy Wall Street started an important discussion about inequality, they did not advance the transaction tax (backed vigorously by the California Nurses Association), when they were encamped near Wall Street and in the eye of the mass media in 2011. A missed opportunity, but not a lost opportunity. Fighting injustice has many chances to recover and roar back.
It is time for, young Americans to act! Push Congress to enact a Wall Street speculation tax to help roll back your student debt and give you additional opportunities that are currently denied to you by the inside bank robbers who never had to face the sheriffs. They owe you.
As William C. Dudley, the eminent president of the Federal Reserve Bank of New York recently said of Wall Street – “I think that they really do have a serious issue with the public.” Yes, penance and future trustworthiness enforced by the rule of law.
nowhere.
Young America, you have nothing to lose but your incessant text messages that go nowhere.
Start empowering yourselves, one by one, and then connect by visiting Robin Hood Tax.
Where the Money Isn’t Going
By JAMES G. ABOUREZK | June 29, 2009
Wherever I heard that hackneyed phrase, “If you find yourself in a hole, stop digging,” it applies more today than anytime I can remember. What I don’t understand is, when our government has spent billions on bank bailouts (not a good idea) on bailing out the stupidity of the automobile executives (a better idea because it saves jobs for working people), why are members of Congress and the drug and insurance lobbies feeding this fairy tale that we cannot afford single payer health care.
Virtually every industrialized country in the world has a health care system that is paid for by tax revenues, making sure that it is available to everyone. Even Syria, which is not a rich country, sends medical students to medical school, then requires them, upon graduation, to serve in a village clinic at a very low salary. Medical care is provided for every Syrian citizen, although there is a private medical system for those who want to pay.
Neither, we are told, can we afford a national passenger rail system that would do a great deal to decrease pollution, cut down on the use of oil, and that would move people to every part of our country, just like it’s done in Europe and in Japan.
But we can’t afford either of these common sense projects, even though we are digging our financial hole deeper and deeper with other projects that we should bring to a close.
Israel. We are still shoveling money out of the door of our national treasury giving Israel all the money they need to finance their brutal occupation of the Palestinians, plus giving them one of the highest living standards in the world. The last time I checked with the Library of Congress, Israel had drained our treasury (money from American taxpayers) to well over 100 billion dollars.
And what have we received in return? Well, I am currently reading Attack on the Liberty, written by James Scott, a journalist whose father was an ensign on board the Liberty when Israel tried to destroy the U.S. Navy ship during the 1967 Middle East War. Whenever I feel like having my blood boil, I pick up the book and read another chapter describing the deliberate attack on our ship, which killed over 30 American sailors and wounded another 170. As bad as the attack was, the continuing cover up both by Israel and the U.S. government is an ongoing outrage.
Add to that, the unknown number of Israeli spies who are burrowing into our government to learn our secrets. Jonathan Pollard, for example, was paid by Israel to unload what authorities have described as “a truckload of secret documents” to Israel’s agents in this country. The latest episode of Israeli spying is notable for the speed with which the U.S. Justice Department dismissed the charges against the two pro-Israeli spies, despite the finding of guilty and a 12 year sentence to the U.S. official–Larry Franklin–who handed over the documents to the spies.
Other things we can do without include the manned space program. The shuttle program, which costs American taxpayers several billion dollars a year, would look better viewing it from the rear view mirror. Several Nobel laureate scientists, as well as this writer, have advocated an unmanned program for space exploration instead of the much costlier manned program. First of all, the manned program cannot go as far into space as an unmanned program can, and secondly, it is vastly cheaper while being more rewarding. But it’s difficult to stop the bleeding of taxpayers’ money once it starts
We have the same trouble financing our NATO involvement. Now, NATO was designed during the Cold War to protect Europe from the nasty Soviets. Now that the Soviets are no longer around, who does NATO protect? Only the arms manufacturers who benefit from weapons sales both to the U.S. and to NATO members.
I don’t think a lot of explanation is needed for reasons to get the U.S. out of Iraq and Afghanistan. Yes, I include Afghanistan in my exit strategy, mostly for the reason that we shouldn’t need the second kick of a mule to learn to stay away from the mule. We all witnessed the Soviets who were almost destroyed by their adventure in Afghanistan, and we should have learned that American troops are a natural target in places like that country. The only logical conclusion is to get our troops out of there, leaving it to the Taliban and the warlords and the Pakistanis to deal with that quagmire.
Although the pro-Israeli Zionists do not like to hear it, but a lot of our Middle East woes derive from the brutality of the continuing occupation of Palestine by the Israelis. What is unfortunate is that the American press spends its time and its talents trying to avoid discussing what Israel is doing in the Middle East.
I saw NBC’s David Gregory interviewing Bibi Netanyahu on Meet the Press. Discussing Iran, Netanyahu said that true democracies such as Israel would never commit violence against protesters. Gregory let that one go right past him, going on to the next puffball question to Bibi, which again he knocked over the fence. If I recall, it was another bit of hypocrisy meted out by the slick talking Prime Minister.
But that’s the state of our media today. There is 40 times the coverage of Michael Jackson’s heart attack than there was of the slaughter of 1,200 Gazans during Israel’s invasion last year. At times I feel sad about the death of America’s newspapers, but after seeing how they behave, and how they fail in their job of watching the government for the rest of us, maybe it’s for the best to let them all go under. They contribute little more than crossword puzzles and sports scores (which are for the betting public anyway).
We’ve reached the place in the hole we’re digging which might make us think about stopping.
James G. Abourezk is a lawyer practicing in South Dakota. He is a former United States senator and the author of two books, Advise and Dissent, and a co-author of Through Different Eyes. This article also runs in the current issue of Washington Report For Middle East Affairs. Abourezk can be reached at georgepatton45@gmail.com
Source
New book: “The politics of empire. The US, Israel and the Middle East”
By James Petras | Clarity Press
This book provides a unique conception of US empire building, linking overseas expansion with:
– the growth of a police state and declining living standards;
– advanced technologically driven global spying on adversaries and allies with declining economic competitiveness and military defeats;
– large scale, long term commitments of economic and military resources to wars in the Middle East to the detriment of major corporate interests, but for the benefit of a pariah state, Israel; and
– the power of a foreign state (Israel) over US policy via its domestic pro-Zionist power configuration The interplay of these four specific features of US empire building has no past or present precedent among imperial states.
Because of Israeli-Zionist influence on US imperial policy, the main targets and objectives of imperial wars are located in the Middle East. The objectives of Israeli and Zionist- influenced US policy in the Middle East is to enhance Israeli regional power and the dispossession of the Palestinian people. The trillion dollar cost of US wars for Israel, however, has alienated the vast majority of US society and driven a wedge between the political elite backing new wars for Israel, and the public prioritizing of domestic economic welfare. This study highlights how the domestic foundations of empire building have deteriorated and forced the imperial presidency to modify its approach, seeking diplomatic negotiations over new military interventions, specifically in the cases of Syria and Iran.
Imperial politics is viewed as a multi-sided power struggle between military and economic elites, Israel and the Zionist power configuration, overseas resistance movements and nationalist regimes, and the US public. The resolution of this power struggle is more than an academic question; it will determine whether the US will become a full blown police state, ruled by the pawns of a racist-colonial state engaged in endless wars or return to its roots as an independent democratic republic “free of foreign entanglements”.
The politics of empire. The US, Israel and the Middle East
by James Petras
ISBN: 978-0-9860731-0-6 $18.95 / pp. / 2014
Available in the US from Clarity Press, amazon.com, Baker & Taylor, Barnes & Noble, Ingram and online booksellers
Available from Distributors in the USA, the UK/Europe, Middle East, Malaysia/Singapore
Request a review or desk copy
America’s Unceasing Contempt for Venezuela
By Jason Hirthler | CounterPunch | March 11, 2014
Some things never change. The petulant and undemocratic Venezuelan opposition is at it again, with the full backing and check-writing support of the U.S. government. Recent protests have inflamed the streets of Caracas, as opposition groups, as they have in the Ukraine, called for the ouster of the sitting president. I suppose it’s needless to note that Nicolás Maduro is Venezuela’s democratically elected president, and that he won by a higher victory margin in a cleaner election than did Barack Obama in 2012. Nor is it worth asking, one supposes, that if the entire country is engulfed by dissent, as The New York Times insidiously suggested by claiming the “The protests are expressing the widespread discontent with the government of President Nicolás Maduro, a socialist…”, then why did Maduro’s party, Partido Socialista Unido de Venezuela (PSUV), claim wide majorities in municipal elections in December? Or why are these “widespread” protests largely confined to middle-class or student areas of Caracas and not rife within much larger poor neighborhoods? Or if a government has the right to arrest opposition leaders (in this case Leopoldo Lopez, the latest rabid ideologue) for inciting violence?
Public Virtue, Private Vice
Secretary of State John Kerry has ratcheted up the drivel stateside, claiming to be “alarmed” by reports that Maduro has “detained scores of anti-government protesters” and that the crackdown would have a “chilling effect” on free expression. A bit rich coming from a man whose own government has been icing free speech since the Snowden revelations. Kerry failed to mention whether the millions of American taxpayer dollars being funneled to the opposition were behind the violence. The Los Angeles Times described Maduro’s administration as an “autocratic government.” Opposition leader Henrique Caprilles, demolished by Maduro in last year’s landslide election, rejected Maduro’s invitation to talks and claimed one of the Latin America’s most popular political parties was a “dying government.”
For its part, Mercosur, the alliance of South America’s southern cone countries, denounced the violence as an attempt to “destabilize” a democratic government. Of course, the behavior of Maduro’s government in response to these street provocations ought to closely watched, as this is the new president’s first real test coping on an international stage with the intrigues of a small but virulent neoliberal opposition.
There’s plenty to suggest that this is, like Ukraine, another external attempt to uproot a democratically elected government through a volatile cocktail of in-country agitation and violence paired with global media defamation of the existing administration. It wouldn’t come as a surprise. Like a frustrated and petulant infant, the United States has repeatedly attempted to derail the Bolivarian Revolution launched by former President Hugo Chavez in the late nineties, as CEPR’s Mark Weisbrot has noted. It backed an anti-democratic coup by business elites in 2002 that actually succeeded for a couple of days and happily dissolved parliament before Chavez regained power. It supported an oil strike in an attempt to destabilize the economy and perhaps bring down the government. It encouraged opposition members of parliament to push for recalls (failed) and boycott National Assembly elections (useless) and clamor incessantly that last year’s national presidential election was rigged (false). Of course, despite being widely held to be a superior electoral process than that of the United States, Kerry was only shamed into recognizing the legitimacy of the election long after the rest of the world had.
The U.S. has poured millions into opposition activities on an annual basis since the failed coup in 2002. (NGOs are convenient destinations for this money since foreign contributions to political parties are illegal in both countries.) Just look at 2013 alone. Washington would hardly stand for interference of this kind from, say, China. Or, better, from Venezuela itself. Imagine if it was discovered that Chavez had been seeding major American metropolises with anti-capitalist pamphleteers. Obama wouldn’t be able to hit the “signature strike” button fast enough. Nevertheless, Kerry, in his role as Secretary of State, has turned out to be a masterful mimic capable of registering a fusty outrage on short notice, especially over claimed violations of civil liberties. Curious, since the ceaseless trampling of civil liberties by his own Democratic party have elicited nothing from this flag-bearer for democratic values.
Dollars & Bolivars
This is not to say that Venezuela does not have protest-worthy problems. Inflation has been chronic since the pre-Chavez days. Now food shortages are trying the patience of the population. And in one sense, these shortages are self-inflicted. According to Gregory Wilpert of VenezuelAnalysis, the government’s currency controls have been undermined by an all-too-predictable black market. While the government has placed strict criteria on the ability of citizens to purchase dollars with bolivars, the black market allows citizens to buy dollars without any criteria whatsoever. The government’s exchange rate is likewise controlled, and has over time begun to distort the real value of the bolivar. The black market exchange rate, by contrast, reflects the external value of the currency. The gap between these exchange rates has grown rapidly, such that there now exist huge incentives for citizens to play currency arbitrage. If they satisfy the federal criteria—such as needing dollars to travel or import goods—Venezuelans can buy dollars cheaply using the government exchange rate. They can then pay those dollars to import goods, then export those goods in exchange for the dollars they just spent on the imports. From there it is a simple step to the black market, where they can sell those dollars for many times what they paid at the government’s official rate, making a tidy profit for themselves. If they happen to be rabid anti-socialists, they can enjoy the companion thrill of generating food shortages that can be blamed on the government. Ah, the timeless magic of import/export.
These are legitimate grievances, however, as are crime figures, which top the regional table. Yet the question is, do they merit the overthrow of a legitimate government backed by a wide majority of the population at the behest of a small but fierce oppositional faction openly funded by an imperial power committed to its overthrow? To do so would risk the absurdity of gratifying the strident demands of a few at the expense of the many. … The fact is, despite the inflation and shortages, the population continues to support the Bolivarian Revolution because of its accomplishments—massive reductions in poverty, extreme poverty, and illiteracy. Significant growth in per capita GDP and other important metrics.
A Doctrine in Decline
We’re seeing in clear images the viciousness with which neoliberal factions resent the loss of power and seek to restore it by any means necessary. Democracy is the least of their concerns. But this has been the Latin American back-story for a couple of centuries. Much of the U.S. activity in Latin America feels like a frantic and desperate last-ditch effort to preserve the Monroe Doctrine, by which we essentially declared Latin America to be our own backyard, off-limits to European empires. What was ostensibly a call to respect independent development in the Southern hemisphere rather predictably evolved into an excuse for self-interested intervention. But now, for the first time in centuries, Latin America has struck out on its own, slipping from beneath the clutch of the eagle’s claw to form organizations like Mercosur and CELEAC, PetroCaribe and Petrosur, the Bank of the South as well as the Bolivarian Alliance for the Americas (ALBA). Aside from Columbia, an implacable outpost of American influence, the region has shunned greater U.S. involvement, and begun to view its proffered trade agreements with far more suspicion, particularly in the long wake of NAFTA, the poster child for lopsided and economically destructive trade treaties.
Whether the U.S. will eventually succeed in a cynical ploy to unseat Maduro remains to be seen. If recent events in the Ukraine are any indication, that may have been a test run for Venezuela, as Peter Lee suggests. It hasn’t helped that, as in practically every country that comes to mind, an elite class of neoliberal ideologues own the mainstream media. The tools of propaganda have rarely been more fiercely deployed than since Chavez launched his socialist revolution. And yet, since then, practically the entire continent has experimented with left-leaning leadership: Rafael Correa in Ecuador, Evo Morales in Bolivia, Nicanor Duarte in Paraguay, Tabare Vazquez in Uruguay, to some degree Luiz Inácio Lula da Silva in Brazil, and Maduro in Venezuela. Nor should exiled Honduran president Manuel Zalaya be forgotten. These figures have collectively stepped back from the brink of dubious integration with North America and sought stronger regional ties and continental autonomy.
The U.S. has replied with a predictable confection of threats, lies, and sacks of cash for ferociously anti-democratic elements. Perhaps it most fears the bad karma it generated for itself with Operation Condor, which on September 11, 1973 overthrew and murdered Chile’s socialist leader Salvador Allende and replaced him with a gutless sadist, Augusto Pinochet. Pinochet—a repressive militarist—happily instituted the untested prescriptions of the Chicago School of Economics’ sermonizing armchair guru Milton Freidman, with predictable results. Now, Maduro, carrying the mantle of Chavez and his Bolivarian manifesto, is arguably the spiritual vanguard of the socialist left in South America. Venezuela’s efforts to continue to forge its own independence in the coming decade will surely influence the mood and courage of other leftists in the region. The stakes are obviously high. Hence the relentless American effort to destabilize and publicly discredit the PSUV. The fate of the global left is in a very real sense being tested in the crucible of Caracas.
Jason Hirthler can be reached at jasonhirthler@gmail.com.
EU responsible for Crimea situation: Ex-German chancellor
Press TV – March 10, 2014
Former German Chancellor Gerhard Schroeder says the European Union (EU) is responsible for the situation in Ukraine’s Crimea as its policy toward the Eastern European country was erroneous in the first place.
Schroeder made the comments on Sunday in Hamburg during a press event, in which he said that Brussels made a mistake in the outset when it offered Ukraine an association agreement on “either/or” terms.
The former chancellor wondered if it was right to offer Ukraine, which is a culturally divided country, an alternative of either signing the deal with the EU or a customs agreement with Russia.
Schroeder said it would have instead been more reasonable to offer Ukraine a “both/and” alternative.
He was referring to the ousted Ukrainian president Viktor Yanukovych refraining from signing the association agreement with the EU in favor of closer ties with Russia in November 2013 that triggered the political crisis in the country.
The remarks come amid the standoff between Russia and the West over Ukraine’s autonomous territory of Crimea.
Amid increasingly violent protests, Yanukovych left Ukraine for Russia and a new pro-EU government was formed in Kiev.
Subsequently, and as the protests inside mainland Ukraine lost momentum with the departure of Yanukovych, a crisis began to emerge in Ukraine’s Crimea, where a large majority of ethnic Russians reside and where Russia has a naval base.
Troops, who wear military apparel that bears no insignia but who are largely believed to be Russian, were deployed to several locations in Crimea, taking control of key points in the region.
Last week, lawmakers in Crimea unanimously declared they wanted to join Russia and would put the decision to a referendum on March 16.
The new Ukrainian government, however, has declared the planned vote illegal.
Who will threatened sanctions hit most? US-EU-Russia trade in numbers
RT | March 4, 2014
US lawmakers are already threatening Russia with economic sanctions over the crisis in Ukraine. Trade, business, investment, and G8 membership closely link the Russian, American and European economies.
While the West is considering going down the ‘sanction road’, here’s a look at what’s at stake for the markets.
Trade
In terms of billions of dollars, trade is higher between Russia and the EU, but the US remains Europe’s biggest export market.
Net trade between Russia and the US was $38.1 billion in 2013, according to US Chamber of Commerce data. The US exported $11.26 billion to Russia, and imported $26.96 billion worth of goods.
Russia exports more than $19 billion of oil and petroleum products to the United States, as well as $1 billion in fertilizer products, according to Chamber of Commerce data.
“Is Russia going to be cut off from the world? That is very unlikely given what Russia provides to the world, which are oil, gas, raw materials,” Alexis Rodzianko, president of the American Chamber of Commerce in Russia told Reuters.
Russia is very dependent on trade with the EU, as member states account for about 50 percent of total Russian imports and exports. In 2012, trade between the two neighbors reached €123 billion.
One of Russia’s most valuable exports to Europe is something factories and households run on every day: natural gas. Europe imports one-third of its natural gas from Russia, with Germany being the biggest client importing nearly 30 billion euro annually. In 2012, 75 percent of all European imports from Russia were energy.
Many countries in Europe have strategic partnerships with Russia’s state-owned gas giants, Rosneft and Gazprom.
According to Eurostat data, Russia accounts for 7 percent of total imports and 12 percent of total exports in the 28 European Union bloc, making it the regions third most important trading partner, behind the USA and China.
US companies with big Russia presence
Several of America’ biggest companies- Boeing, Cargill, Ford, General Motors, ExxonMobil, to name a few- all have a huge presence in the Russian market.
Boeing’s investment in Russia is deep, as the aerospace carrier sources a considerable amount of steel, titanium, and aircraft parts from Russian companies. Boeing receives about 35 percent of its titanium from state-owned, Rostec. In 2013, Boeing’s deliveries to Russian carriers were valued at $2.1 billion, and the company plans to spend $27 billion in Russia, Bloomberg reports.
“We are watching developments closely to determine what impact, if any, there may be to our ongoing business and partnerships in the region,” Doug Alder, a spokesman for Chicago-based Boeing, told Bloomberg by email.
Last year, Russia was a $11.2 billion market for the US, with heavy trade in automobiles and aircrafts, according to Commerce Department data.
US automakers have a high exposure to Russian markets, so are closely watching US economic actions against Russia. Ford has sold over 1 million automobiles in Russia, and in 2013, sold 105,000 cars. GM, which has a 9 percent market share, sold 258,000. Both companies have shifted production plants from Europe to Russia, which is set to become Europe’s biggest car market by 2016.
ExxonMobil has partnered with Rosneft in exploring the Bazhenov oil field in Western Siberia, a deal that could be worth up to $500 billion. ExxonMobil is planning to build a $15 billion LNG terminal project in the Bazhenov field, and also has joint venture projects set up to explore Black Sea reserves.
Senator Chris Murphy, chairman of the Senate’s subcommittee on Europe, said the sanctions could be extended to Russia’s banks. Russia’s two largest state banks are Sberbank, Europe’s third largest, and VTB. Both banks have a strong industry presence in London, which has indicated it isn’t moving towards the sanctions. A leaked document from Downing Street shows that the UK government doesn’t plan to follow America-led asset freezes or trade restrictions, but are mulling over visa restrictions and travel bans on key Russian politicians.
Pensions in Ukraine to be halved – sequestration draft
RT | March 6, 2014
The self-proclaimed government in Kiev is reportedly planning to cut pensions by 50 percent as part of unprecedented austerity measures to save Ukraine from default. With an “empty treasury”, reduction of payments might take place in March.
According to the draft document obtained by Kommersant-Ukraine, social payments will be the first to be reduced.
“The Finance Ministry has prepared a plan for optimizing budget expenditures, which implies budget sequestration is to be in force before the end of March. For this purpose, in particular, it has been proposed to reduce capital costs, eliminate tax schemes and preferences and to cut social benefits, for example, 50 percent of pensions to working pensioners,” Kommersant-Ukraine reported.
Ukraine’s Ministry of Social Policy reported on December 1, 2013, that an average pension in Ukraine is $160.
Right after the formation, the self-proclaimed government in Kiev announced that the “treasury is empty”.
Ukraine’s new prime minister, Arseny Yatsenyuk, promised the government would do its best to avoid a default, adding that he expects an EU/IMF economic stabilization package soon. The plan has been formulated in record time, with the government’s strategy ratified in the Ukrainian parliament on February 27, and the document being sent for evaluation to the Ministry of Economic Development and Trade on March 3.
The European Commission offered Ukraine an 11 billion euro loan if Kiev agrees a deal with the IMF, European Commission President Jose Barroso announced on Wednesday. As a rule, help from financial organizations such as the IMF or the World Bank normally includes drastic austerity measures.
Accepting IMF money will mean many sacrifices for Ukraine’s economy, which are likely to include increased gas bills, frozen government salaries, and all around budget cuts.
The government in Kiev has already announced sequestration plans from $6.8 to $8.4 billion in 2014.
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From the Archives
The Crusades – colliding narratives
Ashes of Pompeii | June 13, 2026
They say history is written by the victors, but the Crusades offer an interesting historical contrast: a two-century collision that produced not one history, but two parallel, irreconcilable realities. The dates and the battles are identical in both accounts, but the moral axis is entirely flipped.
In the traditional Western narrative, the Crusades are framed as a heroic, if tragic, epic. The First Crusade is a pious pilgrimage; the knights are romanticized figures of chivalry in shining armor, bravely holding the line in a hostile, exotic land. The eventual loss of the Holy Land is mourned as the “fall of Outremer,” a tragic retreat of European civilization. In this telling, the East is often reduced to a passive backdrop, its inhabitants viewed through a lens of mystique or backwardness, mere obstacles to a divine mandate.
But cross the Mediterranean, and the exact same timeline reads like a chronicle of foreign invasion and eventual, hard-won restoration against the barbarous northerners. The dates do not change, but the adjectives do. Here is the history as it is remembered in the Levant… continue
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