The business behind Ukraine’s new billionaire president
RT | May 26, 2014
One of Ukraine’s richest men, newly elected President Pyotr Poroshenko, has a long history of mixing business with politics. The tycoon has vowed to give up his business interests, and campaigned to align closer to Europe.
In 1991, the Odessa native took over an old state-run sweet factory shortly after the Soviet Union collapsed, and now the ‘Roshen’ candy company has made the 48-year old one of the country’s richest men, with his fortune estimated at $1.3 billion by Forbes.
He will be in charge of reviving Ukraine’s moribund economy, which has been in free-fall for the better part of a year. Poroshenko will have to juggle huge debts, a nearly empty treasury, and a sinking investment climate.
Primarily Poroshenko will be tasked with helping Ukraine manage its $17 billion International Monetary Fund aid program, which will likely include unpopular austerity measures like gas subsidy cuts. Ukraine has been promised over $27 billion in economic aid from various sources, including the European Commission, World Bank, and the United States government.
The chocolate tycoon has expressed his willingness to mend ties with Russia, even after it imposed a ban on the sale of his chocolate, as well as shut down one of his warehouses in southern Russia on criminal charges.
However, Poroshenko has vowed to unite the unruly east, which has deep business and cultural ties to Russia. His company, Rosen, though it wants to focus on the European market, is deeply rooted in the east. Rosen operates confectionery factories in Kiev, Vinnytsia, Mariupol, and Kremenchuk, the Bershadmoloko dairy producer, a stud farm in Ukraine and confectionary facilities in Klaipeda, Lithuania and Lipetsk, Russia
“I assure you, as soon as we’ll achieve stability in the east and these problems in Ukraine will be solved, the investment boom will immediately begin,” Poroshenko declared at a press conference in Zaporozhye on May 18.
Poroshenko has worked across the political spectrum. Originally, he served in pro-Russian governments, and then he played a big role in the 2004-2005 ‘Orange Revolution’ along with Yulia Tymoshenko, which ended up bringing Viktor Yushchenko to the presidency. Later, in 2012, he served as an economics minister to Viktor Yanukovich, but when Yanukovich was ousted, he sided with the Maidan.
The expert’s opinion “Petro Poroshenko is a bright representative of the Ukrainian oligarchy. He was actively participating in the financing of Maidan and he has a certain support abroad,” Andrey Pilko, the director of the Eurasian communication center told RT by phone.
Poroshenko’s program is aimed “to provide Ukrainian production access to the world markets. To sign the economic part of the free trade agreement with EU, and to implement its provisions in a short time…The agrarian side may become a breakout point for the Ukrainian economy”.
Poroshenko described relations with Russia as “the most difficult”.
“I don’t remember such a crisis between our countries for the last 200 years. Nevertheless, the negotiations are progressing it is the Geneva format. I think that today we can conduct negotiations with Russia involving the US, EU and in other formats,” the billionaire said.
He also promised to sell-off his business if he won the presidency.
“I would like to put an example to others when the elected president publicly sells business assets belonging to him in order to achieve a complete concentration on state service,” Poroshenko said.
However, he remarked that he does not see any problems when a successful businessman begins making policy, “when he is the person who has experience in the real economy, who has created jobs. Who is the largest taxpayer and is able to build factories and plants and applies the experience to lift the economy and the country”.
‘Ukraine must pay gas debts’ – EU Energy Commissioner
RT | May 26, 2014
EU Energy Commissioner Guenther Oettinger said Ukraine needs to begin repaying its $3.5 billion gas debt to Russia and proposed a fair ‘market price’ of between $200-$400 per 1,000 cubic meters to resolve the dispute.
“The bills are on the table, and they must be paid,” Oettinger said on German radio station SWR on Monday after holding talks in Berlin with Russian Energy Minister Alexander Novak and Gazprom Deputy CEO Aleksandr Medvedev.
Oettinger suggests Ukraine use some of the $3.2 billion from its first IMF aid tranche and other EU assistance programs to start paying off its debt to Gazprom.
Ukraine owes Russian state-owned Gazprom more than $3.5 billion, as it has not paid its gas bills in full since July 2013. Russia has even given Ukraine 10 billion cubic meters of gas free of charge, as much as Russia delivers to Poland in a year.
President Vladimir Putin said that Russia is only ready to discuss a new gas discount for Ukraine once it starts paying off its debt.
Oettinger said that a “fair and suitable market price” to resolve the dispute would be between $200-$400, which the commissioner considers “common for the European market.”
Kiev has said it is ready to pay Russia as long as Gazprom lowers its current rate of $485 per 1,0000 cubic meters. The price climbed when Gazprom canceled two gas discounts from the $268.50 per 1,000 cubic meters rate it paid in the first three months of 2014.
After June 1, Ukraine will have to prepay for any gas deliveries, as Gazprom said it won’t let any more debt accumulate.
“There are some barriers to indulgence, some things we cannot afford,” Russian President Vladimir Putin said speaking at the 18th annual St. Petersburg Economic Forum on Saturday.
Europe sources about one third of its total energy supply from Russia, 50 percent of which flows through Ukraine. Any possible disruption therefore not only affects the pipeline host country, but all of Europe.
“We all know who is to blame – the transit country, Ukraine has abused its position. Ukraine insists on benefits it is not entitled to,” Putin said at the forum on Saturday.
Oettinger has been a major player in brokering a deal between the two embittered nations, but so far no concrete negotiation has been reached.
China to ditch US consulting firms over espionage suspicion
RT | May 26, 2014
State-owned Chinese companies will cease to work with US consulting companies like McKinsey and Boston Consulting Group over fears they are spying on behalf of the US government.
US consulting companies McKinsey, BCG, Bain & Company, and Strategy&, formerly Booz & Co., will all be snubbed by state-owned Chinese companies, the Financial Times reported, citing sources close to senior Chinese leaders.
“The top leadership has proposed setting up a team of Chinese domestic consultants who are particularly focused on information systems in order to seize back this power from the foreign companies,” a senior policy adviser to the Chinese leadership was quoted by the FT as saying.
“Right now the foreigners use their consulting companies to find out everything they want about our state companies,” the adviser said.
Last Thursday China announced that all foreign companies would have to undergo a new security test. Any company, product or service that fails will be banned from China. The inspection will be conducted across all sectors – communications, finance, and energy.
China has already banned Microsoft’s Windows 8 operating system from government computers, according to Chinese state media agency Xinhua.
“Under President Xi Jinping, technology and implementation will look to be converging, so foreign tech firms should be very worried about their prospects,” Bill Bishop, an independent consultant based in Beijing, told the FT.
Chinese officials have said that government ministries, companies, universities, and telecoms networks are victims of US hacking, and will try to avoid using US technology in order to protect “public interest”.
The dictate follows the US Justice Department’s indictment of five Chinese military officers it suspects of committing cyber crimes against a number of major US companies, including US Steel, Westinghouse and Alcoa. The US accused the army officers of stealing trade secrets and even published their photos.
Beijing responded by calling the US a ‘robber playing cop’, and more recently said the US is a “mincing rascal” and involved in “high-level hooliganism”.
The US-China fallout came after revelations made by NSA contractor Edward Snowden that the US uses economic cyber espionage to spy on international competitors, including China.
The dispute is only the latest setback in relations between the world’s two largest economies. Issues like Ukraine, Syria, and North Korea have been divisive topics between the two superpowers.
The Creeping Decriminalization of Marijuana in the Caribbean
By Kevin Edmonds | The Other Side of Paradise | May 23, 2014
While the decriminalization of marijuana has been a topic of discussion for decades, those in attendance at this week’s Jamaica Cannabis Conference are doing more than just blowing smoke—they are discussing the upcoming stages of a long-overdue and vital transformation of the Caribbean’s regional economy. Jamaica has long been associated with potent, naturally grown marijuana, but also the unfortunate social ills that have accompanied its criminalization.
While marijuana, or ganja, arrived in the Caribbean with Indian indentured laborers in the mid-1800s, it was not criminalized until 1913, when the Ganja law came into effect at the behest of the church and colonial elites. The ban was largely based on ignorant, racist perceptions of the evil effects that ganja would have on the poor black majority, and thus dealt out fines and other oppressive penalties for consumption or cultivation. During the 1940s and the 1950s, despite the cultivation of ganja for spiritual and medical reasons, it became the routine justification for government raids upon the original, self-sufficient Rastafari community of Pinnacle.
Despite Jamaica’s independence in 1962, the colonial origins of criminalizing ganja were not eroded, but strengthened. When Jamaica signed the United Nations Convention on Narcotic Drugs in 1964, it became obligated to treat marijuana as a harmful drug, following the prevailing attitude of the United States. Under the banner of the War on Drugs, the Jamaican government diverted millions of dollars from social development to eradicate marijuana plantations through aerial spraying. If Jamaica refused, under the conditions of the U.S. Drug Certification Policy enacted in 1986, Jamaica would risk losing access to U.S. trade, aid, loans, and visas.
There are very serious human rights issues associated with the prohibition of marijuana. Across the Caribbean, courts are backlogged with simple possession charges for small quantities of marijuana. In one case in St. Lucia, fines for small quantities of marijuana reached $200, or up to 30 days in jail. These charges in turn limit employment and travel opportunities, creating inter-generational disadvantages for those who face jail time. As a result of the overloaded prison systems across the region, the economic and social costs of marijuana are tremendous, as much needed economic resources are taken away from social development and funneled towards an endless cycle of law and order policies.
In addition, the criminalization of marijuana has also led to the unfortunate and unnecessary marginalization of the Rastafari community, which regard the herb as a holy sacrament. Last August St. Lucian journalist Earl Bousquet commented on the negative portrayal of marijuana in the 1960s and 1970s:
Marijuana was… pinned to the Rastafarian movement that started spreading to the rest of the region from Jamaica at the same time. The then leaders erroneously hoped they could easily do away with ‘Rastas and marijuana’ through new laws and armed police forces. By legally twinning Rastafarianism with an illegal substance, growth of a positive and distinctively Caribbean social movement driven by the works of Marcus Garvey, rooted in Pan Caribbean-African nationalism and advocating closer communion with nature half-a-century ago was stifled, suppressed and forced to spend more time resisting and fighting ‘Babylon’ than refining the philosophical, spiritual, cultural and political base of the only indigenous Caribbean movement of its kind in the 20th century.
As a further result of these criminalization policies, Jamaica now has to play catch up in the newly emerging legal and medical marijuana market, according to Dr. Albert Lockhart, a leading ophthalmologist and noted speaker at the Cannabis Conference, who stated that “we are 40 years late.” Dr. Lockhart has helped to pioneer medicine derived from marijuana such as Canasol (which treats glaucoma) and Asmasol (which treats asthma), but due to lack of funding their discoveries are not widely known outside of the island. Dr. Lockhart further warned that if Jamaica does not act now it would be at risk of missing the boat, losing out to countries such as the United States, where the states of Colorado and Washington have fueled the push for legalization across the region—and Canada where medical marijuana has become big business.
Phillip Paulwell, Jamaican Minister of Science and Technology, has assured interested parties that marijuana will be decriminalized by the end of the year. Paulwell remarked that “I am of the firm opinion that scientific research into marijuana, both in the very many uses of the plant as hemp, and its medical properties, is an idea whose time has come,” adding that a marijuana-based medical industry could earn as much as $5.2 billion.
So the Cannabis Conference closed with hope that Jamaica and the wider Caribbean will be able to finally cash in and create a world leading, legal industry which not only acts as a cash crop and provides much needed agricultural jobs, but also as the building blocks for the development of wide ranging medical treatments. Additionally, the new CARICOM Regional Commission on Marijuana Use shows a regional investigative interest. Beyond just decriminalization, the Ganja Future Growers and Producers Association has been advocating for a regulatory model that will benefit small growers instead of large corporations, stating: “For the first three years of a regulated industry, licenses should only be given to plots of one acre or less.” The taxable income from the industry has the power to transform stagnating Caribbean economies and will allow them to have the self determination to rightfully produce a quality product which the world has always demanded in great quantity, but has been criminalized for far too long.
Kevin Edmonds is a NACLA blogger focusing on the Caribbean. Edmonds is a former NACLA research associate and a current PhD student at the University of Toronto, where he is studying the impact of neoliberalism on the St. Lucian banana trade. Follow him on twitter @kevin_edmonds.
Fascism or the Bankruptcy of the Left?
The anti-EU movement spreads all over Europe… apart from Ukraine*
By TAKIS FOTOPOULOS | The International Journal of INCLUSIVE DEMOCRACY, Vol. 9, Nos. 1/2 (2013)
The events in Ukraine have been instructive, even though the mass media of the Transnational Elite (TE) have created the false impression that there has been a popular “revolution” there by cretins fighting for their right to become the TE’s slaves within the EU, so that they may starve like the Greek people! But I will not dwell here on the orange “revolution” that has just been staged in this country by the pro-western bourgeoisie and petty bourgeoisie of Kiev, with the decisive assistance of the provocateurs of the TE’s intelligence services who organized it[1], but rather on the two main lessons to be learned from it, which are especially important for all European peoples and, in particular, for the Greek people.
Firstly, social struggle in the era of neoliberal globalization can no longer be just a struggle for social liberation, as obsolete Marxists still believe today and some Trotskyites have always believed even during the Nazi occupation when they called upon German workers in the Nazi army to fraternize with occupied workers, while some “Marxists” and “anarchists” today still call for similar fraternization between the Zionist occupiers in Israel and the occupied Palestinians! The struggle for social liberation today must, first and foremost, be a struggle for national liberation. This becomes obvious when one considers the fact that, when a country (not belonging to the TE, i.e. mainly the “G7”) is incorporated into neoliberal globalization, it loses every trace of economic and, consequently, national sovereignty. This is why the struggle for social liberation today is inconceivable unless it has already gone through national liberation. The occupying troops that are now destroying and plundering Greece (or Portugal, Spain and Italy) and its weakest social strata (with the full cooperation of a small, local privileged elite which controls the media, the political parties, the “Left” intelligentsia etc.) are not a regular army in uniform and with lethal weapons of physical violence at their disposal, but an economic army in suits, possessing equally lethal instruments of economic violence, as well as the means to justify it.
Secondly, the target of social struggle today can only be neoliberal globalization, which is managed by a TE ensuring that only its own bogus revolutions succeed (the orange “revolutions” in Eastern Europe in the past[2] and today, or the pseudo-uprisings in Libya,[3] Syria, etc.) while even the attempted uprisings of the TE’s victims in Greece and elsewhere are suppressed in the most brutal way as soon as they occur – and yet Baroness Ashton finds nothing wrong with this, nor does she detect any violation of human rights occurring. Similarly, the peoples who resist being integrated into neoliberal globalization are condemned to remorseless slaughter, as the Libyan and Syrian people have been. Nevertheless, the impudent Barroso did not hesitate to declare that human rights had been violated in Ukraine when the police dared to beat “protesters” who attacked government buildings with bulldozers, “forgetting” that such conduct in any other “democratic” EU country would have sent many to the morgue!
In other words, contrary to the misleading propaganda of the degenerate “Left”, globalization is not a chimera, or just a continuation of the internationalization of the market economy taking place at the beginning of the last century, but, rather, a systemic phenomenon which can only be neoliberal within the capitalist system, as can easily be shown. Similarly, neoliberalism is neither a doctrine (of “shock” and similar fairy tales)[4] nor the bad policy making of certain “bad” neoliberal politicians and economists. It is simply the ideology of globalization. Neoliberal globalization is, in other words, the necessary institutional framework that ensures the opening and liberalization of the markets (capital, goods and labor), which is required for the effective operation of the transnational corporations that currently control the globalized economy.
On the basis of this analytical framework it is not surprising that an unprecedented mass movement “from below” is currently spreading throughout Europe, challenging the EU directly but also neoliberal globalization indirectly. This movement is essentially comprised of the victims of globalization who are driven to mass unemployment and poverty, as well as to homelessness, starvation or even suicide. These popular strata sooner or later become aware of the fraud of the degenerate “Left”, which consciously misleads them by claiming that the current disaster could be overcome even within the EU, despite the loss of economic and national sovereignty. Then, these strata inevitably turn to nationalist movements of all kinds, since these are the only ones that raise the anti-EU flag: from patriotic to neo-Nazi movements – depending on the local conditions. But this nationalism, which both the Transnational and Zionist elites condemn with such disgust (at the very moment when the strongest nationalist state today is the Zionist one!), has little to do with the prewar aggressive nationalism that led to two World Wars. It is a new kind of nationalism which is fundamentally defensive and does not aim to conquer new “vital space” etc. like the pre-WWII nationalism. Above all, it aims to “protect” national sovereignty (national culture, domestic labor, etc.) that is under threat from the opening and liberalization of the markets imposed by globalization.
The main reason that these popular strata have been turning to nationalist movements is, therefore, not that they have suddenly become fascist (as the TE claims in an attempt to defame them); it is the bankruptcy of the degenerate “Left” which, rather than raising the anti-EU flag in place of the nationalists to promote a struggle for social and national liberation, is engaged in “antifascist” struggles together with privileged “leftists”. It is not surprising, then, that this “Left” implicitly consents to the passing of “anti-fascist” legislation, as required by the Transnational and Zionist elites, so that it may effectively ban such movements that threaten its hegemony. In Greece, for instance, a so-called “anti-racist” bill is now being passed through Parliament, which effectively bans freedom of thought (not action!). This bill means, for example, that if somebody supported the national liberation struggle of the Syrian Baathist leadership against the TE and the criminals, pretending to be rebels, who have destroyed this country, s/he might end up in jail for supporting war crimes against humanity. This is based on a very recent utterly biased report by the well known instrument of the TE, the UN Human Rights Commission, which asserted that as Navi Pillay, the UN’s human rights chief, said there is “massive evidence … [of] very serious crimes, war crimes, crimes against humanity” and that “the evidence indicates responsibility at the highest level of government, including the head of state”.[5] Of course, neither this committee nor Navi Pillay who once said that “the Commissioner is the voice of the victim everywhere,”[6] nor its blood brothers among the NGOs for human rights (Amnesty International, Human Right Watch, etc.) have ever dreamed of declaring the arch-criminals Bush, Blair et al. to be guilty of war crimes, even though they are responsible for the deaths of millions of people. Presumably, the millions of people killed or maimed by war criminals like them are not victims, according to Mrs Pillay’s definition of a victim!
However, the Greek “Left”, i.e. the SYRIZA party, instead of mobilizing the people against this unashamedly fascist law, has quietly consented to it by merely abstaining from voting (only the Greek Communist Party and the ultra-nationalist Golden Dawn party voted against it). It should be noted that SYRIZA, together with its leader, Alexis Tsipras – who has been heavily promoted by the media of the TE – is destined by the same elites to succeed the present parliamentary junta in implementing the same policies but under a “Left” cover. Yet the sordid professional politicians who voted in favor of this openly fascist law dare to speak of democracy and the fight against fascism. This blatant bankruptcy of the “Left” is yet another major reason why a mass popular Front is needed in Greece and in all other countries which have fallen victim to the TE that administers neoliberal globalization, as I stressed in my last article.[7]
* This is an expanded edited version of an article by Takis Fotopoulos under the same title published in the Athens daily Eleftherotypia (8/12/213).
[1] See e.g. Stephen Lendman, “Ukraine: Orange Revolution 2.0?,” Global Research (6/12/2013).
[2] Takis Fotopoulos, “The Ukrainian Crisis and the Transnational Elite,” The International Journal of INCLUSIVE DEMOCRACY, vol.1, no.4 (July 2005).
[3] Takis Fotopoulos, “The Pseudo-Revolution in Libya and the Degenerate Left,” Part I & Part II, The International Journal of INCLUSIVE DEMOCRACY, Vol. 7, No. 1 (Winter-Spring 2011).
[4] See e.g. Naomi Klein, The Shock Doctrine (Penguin, 2007).
[5] Ian Black, “Assad implicated in Syrian war crimes, says UN,” The Guardian (3/12/2013).
[6] Jonah Fisher, “Profile: New UN human rights chief,” BBC News (28/7/2008).
[7] Takis Fotopoulos, “Globalization and the End of the Left-Right Divide” (Part I), The International Journal of INCLUSIVE DEMOCRACY, Vol. 8, Nos. 3/4 (Fall 2012-Winter 2013).
What Brought the West to the Table
By Kaveh L. Afrasiabi | Iran Review | May 20, 2014
There is a widespread Western fallacy that “sanctions brought Iran to the table,” which serves to legitimize the unjust regime of sanctions imposed by the Western governments, who rationalize their action by claiming to be the “injured parties” under international law, with respect to Iran’s alleged “non-compliance” with its international obligations.
The problem with this perspective that has acquired the status of a self-evident truth in the Western media is that it adopts the rhetoric of Western governments at face value, without the slightest inquiry on what caused the US and other Western governments involved in the nuclear negotiations with Iran to also ‘come to the table,’ that is, make reciprocal concessions?
The answer to the above question is three-fold. First, the idea that the Iran sanctions have caused little or no pressure on the Western countries is, of course, suspect and can be easily debunked. On the contrary, it can be shown that the whole edifice of sanctions regime was experiencing growing pressures and the Geneva agreement reflected a break not only for Iran but also the very sanctioning regimes, above all the US and European Union (EU).
To elaborate, given the fact that Iran’s nuclear progress had continued unabated despite the escalation of sanctions since 2006, the US was poised to pass new sanction laws targeting Iran’s oil sector, which if passed would have adversely affected US’s relations with some of its own trade partners such as India and China. In the absence of a deal in Geneva last November, the US lawmakers would have for sure enacted the new legislation, which would have instantly introduced new distortions in global trade, further violating the WTO norms on free trade. In other words, the Geneva agreement was a timely rescuer for the Western sanctioning states, avoiding a deterioration of their relations with Iran’s energy partners.
Second, by the time of Geneva agreement the unilateral European sanctions had come under increasing scrutiny by various courts in Europe, which had struck down a growing number of banks, trading companies, and individuals from the sanctions list. The significance of these adverse rulings, dreaded by the US officials who lobbied unsuccessfully to prevent them, was that it questioned the legality of some aspects of the EU sanctions that went far beyond the scope of UN sanctions on Iran, thus reflecting the irrefutable legal gap between UN and unilateral sanctions.
Third, in addition to the pressure of ‘market-distorting’ Western sanctions on the sanctioning powers, who deprived their own corporations from conducting profitable business with Iran, much to the delight of their Asian competitors, another important factor that ‘brought the West to the table’ was indeed the impressive pace of Iran’s nuclear progress. As a result of this steady progress, reflected in Iran’s ability to manufacture fuel rods for its medical reactor by enriching uranium up to 19.75%, i.e., the upper limit of low-enrichment, the West was suddenly jolted into the realization that Iran had reached a new nuclear milestone warranting serious negotiation.
Connected to this at the same time was the lessening value of the “military card” in West’s hands, in light of Iran’s construction of the underground facility known as Fordo, which is relatively immune from aerial bombardment, compared to the above-ground Natanz facility. This instantly jettisoned the “Osirak option,” that is the Israeli scenario of knocking down Iran’s facilities the way they did with ease against Iraq in 1981, thus adding to the futility of military threats against Iran. Needless to say, Iran’s counter-threat of closing the Hormuz and retaliating against any attacks throughout the region and beyond, i.e., the doctrine of extended deterrence, was an effective response that raised the potential cost of any military adventures against Iran. A good deal of this successful Iranian counter-strategy hinged on Iran’s extensive preparations for “asymmetrical warfare” and reliance on missile defense, given the impressive Iranian advances in missile technology.
Notwithstanding the above-said, it is hardly surprising that faced with Iran’s steady nuclear progress despite the sanctions that had harmful effects on the Western economy and entailed exorbitant monitoring costs, the West agreed to climb down its maximalist demands on “zero centrifuges” and to tacitly recognize Iran’s right to a civilian fuel cycle.
Of course, this explanation does not preclude the argument that the escalation of sanctions adversely affected Iran’s economy and spurred the new government of Hassan Rouhani to prioritize the lifting of sanctions through good-faith and principled negotiations. As an “injured party” whose inalienable nuclear rights have been abridged by Western discrimination and punitive actions, Iran’s anti-sanctions quest is in line with the nation’s national interests. But, while so much attention has been paid to Iran’s motivation to ‘make a deal’ unfortunately so far little attention has been paid to the underlying reasons for the West to reciprocate Iran’s action and thus explore the feasibility of a “win-win” scenario.
In terms of the regional and global geostrategic context, there are undeniably a host of relevant factors such as the withdrawal of US and NATO forces from the region after a decade of costly intervention and the related concerns for stability ‘the day after’ their planned departure, i.e., issues of direct link to Iran’s role in regional stability. Altogether, the net of Western interest to deal with Iran and search for ‘common grounds’ has been expanding and, naturally, one must probe the various economic, political, and geostrategic interests and concerns of the Western governments led by the US in determining why these powers consented to an interim deal with Iran, which has triggered the current negotiations for a long-term agreement? Suffice to say that the Western media’s failure to pay attention to this side of equation fuels a Western misperception that focuses on Iran’s purported weaknesses due to the sanctions, without bothering to present a comprehensive picture that, as outlined above, presents a vastly different, and more complex, picture before us, with clear policy connotations.
Ismael Hossein-zadeh’s “Beyond Mainstream Explanations of the Financial Crisis”
The Consequences of Parasitical Capitalism
Book review by Isaac Christiansen | CounterPunch | May 23, 2014
Ismael Hossein-zadeh has done a masterful job in explaining the causes of the 2007-08 financial collapse and in identifying what must be done in response. While there is a consensus that the main source of the 2008 financial collapse was the accumulation of too much toxic debt, there is little agreement on the factors that precipitated the buildup of all that unsustainable debt. Focusing on superficial descriptions or symptomatic factors such as deregulation, securitization, greed, and the like, mainstream economics falls way short of providing a satisfactory explanation for the collapse, or the ensuing long recession. Now comes a newly published book, Beyond Mainstream Explanations of the Financial Crisis: Parasitic Finance Capital, which skillfully fills this theoretical void as it provides an alternative explanation of the 2008 financial collapse, of the ensuing long recession and of the neo-liberal austerity responses to it. Instead of simply blaming the “irrational behavior” of market players, as neo-liberals do, or lax public supervision, as Keynesians do, the study focuses on the core dynamics of capitalist development that not only created the financial bubble, but also fostered the “irrational behavior” of market players and subverted public policy.
Hossein-zadeh sets out in Beyond Mainstream Explanations of the Financial Crisis to first demonstrate the origins of the crisis and the subsequent transfer of “tens of trillions” of dollars from the vast majority of society into the coffers of the financial speculators through the imposition of austerity cuts on the many for the benefit of the few; and secondly to examine potential societal responses to avoid the repetition of such crises in the future. To do this, he begins by examining the two most prominent explanations for the crisis: the neoliberal explanation, which claimed it was due to irrational market actors and/or intrusive government policies that interfered with the self-correcting market mechanism; and the Keynesian explanation, which explained the crisis as the result of excessive deregulation, “inappropriate” public policy and supply side strategies. The author skillfully exposes the weaknesses of both and offers a compelling and well grounded alternative explanation, as indicated in the book’s title.
The book is well written and is easily understood by those who may not have an extensive background in economic theory. At the same time, it provides keen insights that are essential to understanding the crisis for those who may be more experienced in the field. It is structured with the first five chapters devoted to understanding crises within advanced capitalism, particularly the role of finance capital in provoking them, while the final three chapters are dedicated to examining solutions. Moreover, the work is an essential heuristic tool for any and all who wish to show how and why advanced capitalist economies tend towards crisis and the role of finance capital as a catalyst of crisis. A more thorough examination of the work’s primary contributions follows below.
In Chapter one Hossein-zadeh explains that neoliberal conceptualizations suffer from a misplaced religious-like faith in the market mechanism that led the leading neoliberal/neoclassical economists to remain oblivious to the impending crash. Due to neoliberals’ blind faith in the income-expenditure (or supply-demand) circular flow model, their economic theory is impervious to the fact that contradictions can arise within the real sector itself as well as to the reality that contradictions can also arise between the financial and the real sector. This led the leading neoliberal/neoclassical economists like Ben Bernanke and the IMF financial gurus to predict continual expansion up through the very eve of the crisis, and later to offer mistaken remedies such as quantitative easing and more funds to the financial sector. The impact of these measures is that instead of preventing a new bubble from forming they put us well on the way to creating another one.
In chapter two Mr. Hossein-zadeh delves into the weaknesses of Keynesian explanations of the crisis, arguing that while they are not wrong to signal deregulation as part of the problem leading to this crisis, they naively believe that capitalism will allow itself to be regulated without pressure from the people, thereby ignoring the power relationship between capitalism and the state. Not surprisingly, Keynesians tend to be oblivious as to why their more sane-sounding prescriptions for increasing public demand (through the promotion of New Deal type economic programs) and curtailing the aggressive and irresponsible behavior of financial players through more regulation have not been followed. While their policy suggestions may prove effective under certain circumstances, Keynesians fail to see or acknowledge that profit can also be increased through more intense exploitation of workers, that is, through supply-side measures. Furthermore, while the New Deal reforms were beneficial for the extrication of the U.S. economy from the grips of the Great Depression, these were followed much more as a response to working-class pressure from below then as a deliberated response to the writings of Keynes. In addition, the long economic expansion that followed was also due to the specific global economic situation of vast amounts of capital destroyed in Europe leaving the U.S. without much competition for its exports.
Much of the weakness of Keynesian economic theory, like all neoclassical economics, is their rejection of the category of value, and thus any real understanding as to the origin of social wealth and class dynamics. The general weaknesses of neoclassical economics are covered expertly in chapter 3. This chapter examines the weaknesses in the neoclassical understanding of the relationship between industrial and finance capital. The neoclassical position traditionally argues that the latter is limited by the real expansion of the former, and thus remains oblivious to the possibility of a crisis forming in the financial sector and spreading to the real ‘productive’ sector. To understand the real developments, Hossein-zadeh convincingly argues, we need to turn to Karl Marx’s Volume III and look at what he termed ‘fictitious capital’, when Marx examined how value tended to be siphoned from the sector in which it was produced to the unproductive sectors of the economy in pursuit of speculative investment.
Chapter 4 looks at the historical growth of finance capital (whose share of GDP in 2008 was more than double its share on the eve of the Great Depression in 1929), the growth of speculative activities (derivative markets, credit-default swaps) and the role of private control of the money supply. Each one of these phenomena is analyzed here in their social impacts and class/political dynamics. Here the author (p76) demonstrates that the speculative activity of finance capital accelerates “accumulation of fictitious capital through asset price inflation” (often with the help of public funds that simultaneously act as insurance protecting the speculators from the potential consequences of their socially deleterious behavior), creating a bubble that eventually bursts—with the public left paying the debt for the now-devalued assets.
This chapter also demonstrates that the bailouts for the speculators and austerity for the many, which further increased the already sharp economic inequality, were not an economic necessity but a reflection of the power of finance capital over the state and the monetary authority. To this end, Hossein-zadeh reflects on the immense tax-breaks for the wealthy, gargantuan military spending and lucrative contracts for weapons producers that created ‘public’ debt as a pretext to slash necessary social programs. The chapter demonstrates that we live under an economic system where losses are socialized and profits are privatized.
In Chapter 5, Hossein-zadeh reflects on Marx’s understanding of parasitic finance capital, its place within labor theory of value, and its contribution to a better understanding of the causes behind the present economic crisis. In Vol. III of Capital Marx outlined how the surplus value produced in the industrial and agricultural sectors ends up being divided between the merchant (or commercial capital), finance capital (money lending capital) and ground rent (Marx [1894] 1981). Hossein-zadeh points out that, according to Marx, fluctuations of finance capital could take place independent “of the movement of the actual capital it represents” (p86, quoted in Hossein-zadeh); and that as capitalism develops the movement of money (finance) capital becomes more and more independent of the movement of industrial capital. This is critical for his argument that crisis can hit the speculative financial sector at a moment when there is not a crisis within the real sector, but that through the tightening of credit and asset price deflation spread the crisis from the speculative to the productive sector.
The author further argues in this chapter that contemporary Marxists, unlike Hilferding and Lenin who expanded in the early 20th century on Marx’s work on finance capital, have largely abandoned systematic explorations into the workings of finance capital (generally viewing it as secondary to their conception of a Marxian theory of crisis), and focused primarily on the movements within the productive sector. It is not that Hossein-zadeh disagrees in principle with the contemporary Marxist scholars about the potential for crisis to arise within the circuit of productive capital; but that many of these Marxists have overlooked the fact that crisis can and does at times start within the financial sector and proceeds to spread to the real sector. Many contemporary Marxist theoreticians and economists seem to argue, in an inconsistent or self-contradicting fashion that “asset price inflation can boost demand and cause or magnify an expanding real cycle; but debt and/or asset price deflation cannot cause or aggravate a real-sector recession!” (p107).
In Chapter 6 the author explores the historical record of debt cancellations/write-downs, dating back to Bronze Age Mesopotamia (2400-1400 BCE) and running through the 5th and 4th centuries BCE. Here he examines the evidence that suggests that not only were debt cancellation and land restitution/reform common practices in this epoch, but that they often led to economic renewal. While there are moral and ethical arguments that can easily be made in favor of the biblical Jubilee and debt cancellation in general, Hossein-zadeh goes beyond these points to argue that the historical record offers clear evidence that an economic recovery would not occur so long as the vast majority of the population is saddled with overwhelming debt and interest payments. The author further argues that the decline of these socially-beneficial practices coincided with the rise of private property and the growth of power of landowning and rentier classes, and that these classes exerted influence over the state/religious authorities to deemphasize these central aspects to the Old Testament’s socio-economic reforms.
In Chapter 7 the author makes the case for public banking. Here he underscores once again the pernicious role of private banking in advancing the interests of the wealthy few in general and finance capital in particular at the expense of the many. He argues that while private banks “create financial bubbles during expansionary cycles and credit crunch during contradictory ones”, public banking “can provide steady, reliable financial resources as dictated by a nation’s industrial and/or commercial needs”(p129). Crucial here is the superior economic record held by the BRICS (Brazil, Russia, India, China and South Africa) countries in weathering the 2008 financial collapse and the ensuing economic crisis. Contrary to a situation in which the state becomes beholden to creditors, when banks are nationalized the state has additional resources with which to engage in essential public projects that both serve a social purpose and stimulate demand. While acknowledging that public banking by itself is insufficient to prevent the recurrence of all economic crises, Hossein-zadeh successfully makes the case that this is a necessary first step to avert crises that originate within the financial sector.
In the final chapter, the author soundly argues that there are no shortcuts to superseding capitalism by solely nationalizing the banking system; and that we must move beyond capitalism itself, or else we would be subjected to the throes of its logic. Here he examines the role of labor as one of the key players in confronting capital. Sadly, as he points out in this chapter, many unions have become caught up in business unionism and have tragically become vehicles for transmitting the dictates of capital to the workers (as opposed to vice-versa!), and have been unable (or unwilling) to resist the generalized assault on labor in the form of layoffs, wage cuts and outsourcing.
A central explanation for the debilitation of unions offered here lies in capital’s global reach and the globalization of production. Capital has free global movement and is organized on an international level and thus is able to play off workers in various countries against each other in a race to the bottom in terms of worker safety, salaries, benefits, labor laws and environmental protections. Labor must therefore organize internationally so as to be able to effectively resist a globalized capitalist system. A key element of this strategy lies in resisting all forms of chauvinisms, and reactionary nationalisms that have at times infected the labor movement and can lead to what Edna Bonacich (1972) referred to as a split-labor market.
Dr. Hossein-zadeh in this chapter also looks at the limitations of the Occupy movement, arguing that while their heart was in the right place, Occupy activists had condemned themselves to be ineffective as a long-term force for change by refusing to adopt an organizational structure or outline specific demands. The author thus points us back to the critical role of labor to play in this regard, but that it is essential that they organize and coordinate globally, otherwise capital will be able to outmaneuver workers’ resistance and subject labor to its logic. In the end, Hossein-zadeh remains hopeful based on the seeds of international labor organizing that labor will be able to meet this challenge in the future and serve as a primary catalyst for meaningful socio-economic transformation. In summary, I recommend this book without reservation, as a critical component of the library of those who are not just concerned with understanding the dynamics of finance capital and its role in facilitating economic crisis, but to all those who are genuinely interested in bringing about a more socially just and equitable society.
Isaac Christiansen is a Ph.D Student in the Sociology Department at Iowa State University.
Works Cited
Bonacich, Edna. 1972. “A Theory of Ethnic Antagonism: The Split-Labor Market” American Sociological Review, 37:5 547-559.
Marx Karl. [1894] 1981. Capital Vol. III Penguin Books in Association with New Left Review. London WI.
FBI threatens to go after Russian hackers
RT | May 23, 2014
On the heels of a high-profile indictment announced earlier this week by the United States Department of Justice against five Chinese military officers, sources say Russian hackers could be among the next individuals targeted by the DOJ.
The Wall Street Journal, Foreign Policy magazine and the Chicago Tribune all reported this week that officials close to the US government’s hunt for foreign hackers say Russians are on the radar of the Justice Department, and could be named in the next DOJ indictment.
All three outlets hesitated to name their sources, but the Journal reported that people familiar with the government’s investigations said alleged cybercriminals in Russia are likely to be charged soon.
“For several years, the Obama administration has put Chinese and Russian cyber spies and criminals at the top of its list of worst offenders in what officials describe as a relentless campaign targeting American businesses for the benefit of those countries’ own industries,” Shane Harris wrote for FP. “Estimates on the true cost of cyber-espionage range widely, but are generally believe by experts and officials to be in the tens of billions of dollars annually.”
As Harris reported, Federal Bureau of Investigation Director James Comey told members of the Senate Judiciary Committee this week that the FBI was aggressively pursuing further criminal investigations pertaining to foreign hacking cases, but fell short of announcing the filing of new charges. Now with Monday’s indictment out of the way and the US officially charging members of the Chinese military for the first time ever, however, multiple sources said that American authorities are gearing up to throw the book at Russian hackers.
Earlier this week, the Justice Dept. said that five Chinese individuals working within a highly-secretive cyber unit inside the People’s Liberation Army have stolen trade secrets and sensitive communications from six American entities, including major metal companies that compete with Chinese businesses and the US Steel Workers union.
“The range of trade secrets and other sensitive business information stolen in this case is significant and demands an aggressive response,” US Attorney General Eric Holder said in a statement on Monday.
“This administration will not tolerate actions by any nation that seeks to illegally sabotage American companies and undermine the integrity of fair competition in the operation of the free market,” Holder added.
Nevertheless, the Chinese government fired back and accused the US of hypocrisy, and its Foreign Ministry demanded a withdrawal of the indictment and called the US “the biggest attacker of China’s cyberspace.” As RT reported earlier this week, leaked National Security Agency documents released by former US government contractor Edward Snowden have revealed that the US does, in fact, conduct economic cyberespionage in order to spy on competitors in Brazil, France, Mexico and, indeed, China. As with China, the Russian government has adamantly denied any involved in cyber spying, and claims to lack the same technical abilities as the NSA.
And although the Justice Dept. declined to name any other targets of investigation while touting their latest cyber indictment on Monday, reports for years have suggested that Russian hackers have targeted US businesses in a similar way to what China’s PLA Unit 61398 are accused of doing.
Most recently, American cybersecurity firm CrowdStrike reported in January that the Russian government spied on hundreds of US, European and Asian companies, which Reuters called the first time ever that Moscow has been linked to conduct economic espionage over the web.
“These attacks appear to have been motivated by the Russian government’s interest in helping its industry maintain competitiveness in key areas of national importance,” Dmitri Alperovitch, CrowdStrike’s chief technology officer of CrowdStrike, said to Reuters at the time.
“They are copying the Chinese play book,” he said. “Cyber espionage is very lucrative for economic benefit to a nation.”
In March, researchers in the US also traced a piece of malicious malware known as Turla back to Moscow.
“It is sophisticated malware that’s linked to other Russian exploits, uses encryption and targets western governments,” Jim Lewis, a senior fellow at the Center for Strategic and International Studies in Washington, told Reuters then. “It has Russian paw prints all over it.”
The Chinese-Russian ‘Power of Siberia’ … thanks to EU, US foot-in-mouth
By Dmitry Babich | The BRICS Post | May 22, 2014
The Russian press is rarely unanimous in its opinions, but there are two points in today’s coverage of the Russia-China gas deal where all the experts agree.
First, it is not yet clear whether the new deal is a boon for Russia.
But it is certainly a huge failure for the US and the European Union, who lose out on Eastern Siberia’s gas.
Second, in light of the sharp deterioration of Russia’s relations with the West because of the mishandled Western-supported “revolution” in Ukraine, the deal with China now becomes a strategic necessity for Moscow.
The West’s hostile attitudes toward both Russia and China (during his Asia tour last month, US President Barack Obama sided 100 per cent with Japan and the Philippines in their maritime disputes with China), pushed Beijing and Moscow closer together.
The Russo-Chinese contract, which had been in the works for 10 years, was finalized at 4 O’clock in the morning on Wednesday, on the second day of the visit to Beijing by Russian President Vladimir Putin.
It became a dramatic ending to several months of marathon negotiations.
The new contract is supposed to determine the next 30 years of Russo-Chinese cooperation in developing the Russian natural gas fields in Siberia (the eastern part of Russia) and the Russian Far East.
According to the words of Alexei Miller, the head of Russia’s largest gas company, Gazprom, the total cost of the contract is $400 billion.
The volume of gas to be delivered is estimated at a gargantuan amount of over 1 trillion cubic metres. Mr. Miller refused to reveal the price tag, as it is usually done after signing these sorts of deals.
He simply said it was a “commercial secret” for the moment.
“The Force of Siberia”
Nevertheless, most experts agree that Russia has been lucky to sign the deal.
The competition among countries willing to supply energy to China is very intense.
In the ten years that have passed since the start of Russo-Chinese negotiations on the deal, Beijing managed to sign contracts with several Central Asian states, including Turkmenistan, a country boasting gas deposits second only to Russia’s in the former Soviet Union.
Experts estimate an average price of $387 per thousand cubic metres for the 38 billion cubic meters of gas Russia is going to supply to China in the first years of deliveries beginning in 2018.
The deliveries will start once the construction of the pipeline nicknamed “The Force of Siberia” has been completed.
The pipeline is supposed to connect the Russian gas reserves in Eastern and possibly (in future) Western Siberia with the Chinese border.
The project will require investments, which both Russia and China agreed to provide.
The Russian participation is estimated at $55 billion and the Chinese are expected to add $22 billion.
Alexander Birman, a journalist specializing in energy issues, writes in the respected Russian daily Izvestia that the Chinese leader Xi Jinping showed a certain nicety to his Russian counterpart, since he did not pressure Moscow given its deteriorated ties with the EU and US.
“If the West had started applying the so called “sector-geared” economic sanctions, targeting Russia’s energy companies – if such sanctions had been applied, even the price of $350 [per thousand cubic metres of gas] would look good to Gazprom [Russia’s leading energy provider],” he writes of the gas deal.
However, Birman notes that the current standoff between Russia and the West is hurting first and foremost the West’s long-term interests.
(This standoff was made possible by the coup d’etat in Ukraine at the end of February when the legally elected president Viktor Yanukovich was toppled by crowds of pro-Western protesters in the Ukrainian capital Kiev.)
“Having assured for itself the supply of cheap energy, China will reaffirm its position as the world’s most competitive cost-cutting workshop,” Birman writes.
Obama, the pro-Russian lobbyist?
For Russia, diversifying the directions of its gas supplies has become a vital necessity.
The gas deal opens a market corridor for Gazprom to potentially access Asian super guzzlers Japan and South Korea, and allow it to become a player in the Liquefied Natural Gas (LNG) sector.
This is particularly poignant when considering that EU ministers day and night publicize how they want to decrease their “energy dependence” on Russia.
The Soviet Union and Russia have maintained a good reputation with the West since they began supplying gas to Western Europe in the 1960s.
There was a ‘pause’ only once in the winter of 2008-2009, when the Ukrainian authorities stole the Russian gas destined for Western Europe.
Despite this reputation, however, EU member countries make no secret of their preference for gas from Qatar, Algeria, Norway or even the US, where fracking technology has led to a surplus of gas at the domestic market.
“Politically, the Russo-Chinese contract is a success,” says Grigory Vygon, the Director of the Energy Center of the prestigious Skolkovo Business School, near Moscow.
“The Ukrainian risks and the position of Europe make diversification a vital necessity.”
One could add that Obama revealed himself (inadvertently) to be the best lobbyist for Russo-Chinese rapprochement during his recent visits to countries having territorial disputes with China.
By directly supporting the “revolution” in Kiev and by lending support to all of China’s challengers in the South China Sea and East China Sea, Obama helped Moscow and Beijing to bridge during their intense negotiations the gap in desired prices for their mammoth deal.
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Dmitry Babich is a senior journalist based in Moscow who has worked with the Komsomolskaya Pravda newspaper, Moscow News and Ria Novosti. He is currently a political analyst for Voice of Russia.
Capitalists, Technocrats and Fanatics: The Ascent of a New Power Bloc
By James Petras :: 05.21.2014
Introduction
The sweeping electoral victory of the Bharatiya Janata Party (BJP) in India is the latest expression of the world-wide advance of a new power bloc which promises to impose a New World Order harnessing ethno-religious fanaticism and narrowly trained technocrats to capitalist absolutism.
The far-right is no longer at the margins of western political discourse. It is center-stage. It is no longer dependent on contributions by local militants; it receives financing from the biggest global corporations. It is no longer dismissed by the mass media. It receives feature coverage, highlighting its ‘dynamic and transformative’ leadership.
Today capitalists everywhere confront great uncertainty, as markets crash and endemic corruption at the highest levels erode competitive markets. Throughout the world, large majorities of the labor force question, challenge and resist the massive transfers of public wealth to an ever reduced oligarchy. Electoral politics no longer define the context for political opposition.
Capitalism, neither in theory nor practice, advances through reason and prosperity. It relies on executive fiats, media manipulation and arbitrary police state intrusions. It increasingly relies on death squads dubbed “Special Forces” and a ‘reserve army’ of para-military fanatics.
The new power bloc is the merger of big business, the wealthy professional classes, upwardly mobile, elite trained technocrats and cadres of ethno-religious fanatics who mobilize the masses.
Capitalism and imperialism advances by uprooting millions, destroying local communities and economies, undermining local trade and production, exploiting labor and repressing social solidarity. Everywhere it erodes community and class solidarity.
Ethno-Religious Fanatics and Elite Technocrats
Today capitalism depends on two seemingly disparate forces. The irrational appeal of ethno-religious supremacists and narrowly trained elite technocrats to advance the rule of capital. Ethno-religious fanatics seek to promote bonds between the corporate-warlord elite and the masses, by appealing to their ‘common’ religious ethnic identities.
The technocrats serve the elite by developing the information systems, formulating the images and messages deceiving and manipulating the masses and designing their economic programs.
The political leaders meet with the corporate elite and warlords to set the political-economic agenda, deciding when to rely on the technocrats and when to moderate or unleash the ethno-religious fanatics.
Imperialism operates via the marriage of science and ethno-religious fanaticism- and both are harnessed to capitalist domination and exploitation.
India: Billionaires, Hindu Fascists and IT “Savants”
The election of Narendra Modi, leader of the BJP and long-time member of the Hindu fascist Rashtriya Swayamsevak Sangh (RSS) para-military organization was based on three essential components:
(1) Multi-billion rupee funding from corporate India at home and abroad.
(2) Thousands of upwardly mobile IT technocrats mounting a massive propaganda campaign.
(3) Hundreds of thousands of RSS activists spreading the “Hindutva” racist doctrine among millions of villagers.
The Modi regime promises his capitalist backers that he will “open India”– namely end the land reserves of the tribes, convert farmland to industrial parks, deregulate labor and environmental controls.
To the Brahmin elite he promises to end compensatory quotas for lower castes, the untouchables, the minorities and Muslims. For the Hindu fascists he promises more temples. For foreign capitalists he promises entry into all formerly protected economic sectors. For the US, Modi promises closer working relations against China, Russia and Iran… The BJP’s ethno-religious Hindu fanaticism resonates with Israel’s notion of a “pure”Jewish state. Modi and Netanyahu have longstanding ties and promise close working relations based on similar ethno-racist doctrines.
Turkey: The Transition to Islamic-Capitalist Authoritarianism
Turkey under the rule of Erdogan’s Justice and Development Party has moved decisively toward one-man rule: linking Islam to big capital and police state repression. Erdogan’s ‘triple alliance’ is intent on unleashing mega-capitalist projects, based on the privatization of public spaces and the dispossession of popular neighborhoods. He opened the door to unregulated privatization of mines, communications, banks – leading to exponential growth of profits and the decline of employment security and a rising toll of worker deaths. Erdogan has shed the mask of ‘moderate Islam’ and embraced the jihadist mercenaries invading Syria and legislation expanding religious prerogatives in secular life. Erdogan has launched massive purges of journalists, public officials, civil servants, judges and military officers. He has replaced them with ‘party loyalists’; Erdogan fanatics!
Erdogan has recruited a small army of technocrats who design his mega projects and provide the political infrastructure and programs for his electoral campaigns. Technocrats provide a development agenda that accommodates the foreign and domestic crony corporate elite.
The Anatolian Islamists, small and medium provincial business elite, form the mass base – mobilizing voters, by appealing to chauvinist and ethnocentric beliefs. Erdogan’s repressive, Islamist, capitalist regime’s embrace of the “free market” has been sharply challenged especially in light of the worst mining massacre in Turkish history: the killing of over 300 miners due to corporate negligence and regime complicity. Class polarization threatens the advance of Turkish fascism.
Israel and the “Jewish State”: Billionaires , Ethno-Religious Fanatics and Technocrats
Israel, according to its influential promoters in the US, is a ‘model democracy’. The public pronouncements and the actions of its leaders thoroughly refute that notion. The driving force of Israeli politics is the idea of dispossessing and expelling all Palestinians and converting Israel into a ‘pure’ Jewish state. For decades Israel, funded and colonized by the diaspora, have violently seized Palestinian lands, dispossessed millions and are in the process of Judaizing what remains of the remnant in the “Occupied Territories”.
The Israeli economy is dominated by billionaires. Its “society” is permeated by a highly militarized state. Its highly educated technocrats serve the military-industrial and ethno-religious elite. Big business shares power with both.
High tech Israeli’s apply their knowledge to furthering the high growth, military industrial complex. Medical specialists participate in testing the endurance of Palestinian prisoners undergoing torture (“interrogation”). Highly trained psychologists engage in psych-warfare to gain collaborators among vulnerable Palestinian families. Economists and political scientists, with advanced degrees from prestigious US and British universities (and ‘dual citizenship’) formulate policies furthering the land grabs of neo-fascist settlers. Israel’s best known novelist, Amos Oz condemned the neo-fascist settlers who defecate on the embers of burnt-out mosques.
Billionaire real estate moguls bid up house prices and rents “forcing” many “progressive” Israelies, who occasionally protest, to take the easy road of moving into apartments built on land illegally and violently seized from dispossessed Palestinians. ‘Progressives’ join neo-fascist vigilantes in common colonial settlements. Prestigious urbanologists further the goals of crude ethno-racist political leaders by designing new housing in Occupied Lands. Prominent social scientists trade on their US education to promote Mid-East wars designed by vulgar warlords. Building the Euro American Empire: Riff-Raff of the World Unite!
Empire building is a dirty business. And while the political leaders directing it, feign respectability and are adept at rolling out the moral platitudes and high purposes, the ‘combatants’ they employ are a most unsavory lot of armed thugs, journalistic verbal assassins and highly respected international jurists who prey on victims and exonerate imperial criminals.
In recent years Euro-American warlords have employed “the scum of the slaughterhouse” to destroy political adversaries in Libya, Syria and the Ukraine.
In Libya lacking any semblance of a respectable middle-class democratic proxy, the Euro-American empire builders armed and financed murderous tribal bands, notorious jihadist terrorists, contrabandist groups, arms and drug smugglers. The Euro-Americans counted on a pocketful of educated stooges holed up in London to subdue the thugs, privatize Libya’s oil fields and convert the country into a recruiting ground and launch pad for exporting armed mercenaries for other imperial missions.
The Libyan riff-raff were not satisfied with a paycheck and facile dismissal: they murdered their US paymaster, chased the technocrats back to Europe and set-up rival fiefdoms. Gadhafi was murdered, but so went Libya as a modern viable state. The arranged marriage of Euro-American empire builders, western educated technocrats and the armed riff-raff was never consummated. In the end the entire imperial venture ended up as a petty squabble in the American Congress over who was responsible for the murder of the US Ambassador in Benghazi.
The Euro-American-Saudi proxy war against Syria follows the Libyan script. Thousands of Islamic fundamentalists are financed, armed, trained and transported from bases in Turkey, Jordan, Saudi Arabia, Iraq and Libya to violently overthrow the Bashar Assad government in Syria. The world’s most retrograde fundamentalists travel to the Euro-American training bases in Jordan and Turkey and then proceed to invade Syria, seizing towns, executing thousands of alleged ‘regime loyalists’ and planting car bombs in densely populated city centers.
The fundamentalist influx soon overwhelmed the London based liberals and their armed groups.
The jihadist terrorists fragmented into warring groups fighting over the Syrian oil fields. Hundreds were killed and thousands fled to Government controlled regions. Euro-US strategists, having lost their original liberal mercenaries, turned toward one or another of the fundamentalist groups. No longer in control of the ‘politics’ of the terrorists, Euro-US strategists sought to inflect the maximum destruction on Syrian society. Rejecting a negotiated settlement, the Euro-US strategists turned their backs on the internal political opposition challenging Assad via presidential elections.
In the Ukraine, the Euro-Americans backed a junta of servile neo-liberal technocrats, oligarchical kleptocrats and neo-Nazis, dubbed Svoboda and the Right Sector. The latter were the “shock troops” to overthrow the elected government, massacre the federalist democrats in Odessa and the eastern Ukraine, and back the junta appointed oligarchs serving as “governors”.
The entire western mass media white-washed the savage assaults carried out by the neo-Nazis in propping up the Kiev junta. The powerful presence of the neo-fascists in key ministries, their strategic role as front line fighters attacking eastern cities controlled by pro-democracy militants, establishes them as central actors in converting the Ukraine into a military outpost of NATO.
Euro-America Empire Building and the Role of Riff-Raff
Everywhere the Euro-American imperialists choose to expand – they rely on the ‘scum of the earth’: tribal gangs in Libya, fundamentalist terrorists in Syria, neo-Nazis in the Ukraine.
Is it by choice or necessity? Clearly few consequential democrats would lend themselves to the predatory and destructive assaults on existing regimes which Euro-US strategists design. In the course of imperial wars, the local producers, workers, ordinary citizens would “self-destroy”, whatever the outcome. Hence the empire builders look toward ‘marginal groups’, those with no stake in society or economy. Those alienated from any primary or secondary groups. Footloose fundamentalists fit that bill – provided they are paid, armed and allowed to carry their own ideological baggage. Neo-Nazis hostile to democracy have no qualms about serving empire builders who share their ideological hostility to democrats, socialists, federalists and culturally ‘diverse’ societies and states. So they are targeted for recruitment by the empire builders.
The riff-raff consider themselves ‘strategic allies’ of the Euro-American empire builders. The latter, however, have no strategic allies – only strategic interests. Their tactical alliances with the riff-raff endure until they secure control over the state and eliminate their adversaries. Then the imperialists seek to demote, co-opt, marginalize or eliminate their ‘inconvenient’ riff-raff allies. The falling out comes about when the fundamentalists and neo-Nazis seek to restrict capital, especially foreign capital and impose restrictions on imperial control over resources and territory. At first the empire builders seek ‘opportunists’ among the riff-raff, those willing to sacrifice their ‘ideals’ for money and office. Those who refuse are relegated to secondary positions distant from strategic decision-making or to remote outposts. Those who resist are assassinated or jailed. The disposal of the riff-raff serves the empire on two counts. It provides the client regime with a fig leaf of respectability and disarms western critics targeting the extremist component of the junta.
The riff-raff, however, with arms, fighting experience and financing, in the course of struggle, gains confidence in its own power. They do not easily submit to Euro-US strategies. They also have ‘strategic plans’ of their own, in which they seek political power to further their ideological agenda and enrich their followers.
The riff-raff, want to ‘transition’ from shock troops of empire into rulers in their own right. Hence the assaults on the US embassy in Libya, the assassination of Euro-American proxies in Syria, Right Sector riots against the Kiev junta.
Conclusion
A new power bloc is emerging on a global scale. It is already flexing its muscles. It has come to power in India, Turkey, Ukraine and Israel. It brings together big business, technocrats and ethno-religious fascists. They promote unrestrained capitalist expansion in association with Euro-American imperialism.
Scientists, economists, and IT specialists design the programs and plans to realize the profits of local and foreign capitalists. The ethno-fascists mobilize the ‘masses’ to attack minorities and class organizations threatening high rates of returns.
The Euro-Americans contribute to this ‘new power bloc’ by promoting their own ‘troika’ made up of ‘neo-liberal clients’, fundamentalists and neo-Nazis to overthrow nationalist adversaries. The advance of imperialism and capitalism in the 21st century is based on the harnessing of the most advanced technology and up-to-date media outlets with the most retrograde political and social leaders and ideologies.
How the Iran Nuclear Deal May Impact Iran’s Approach in OPEC
Going to Tehran | May 19th, 2014
How the Iran Nuclear Deal May Impact Iran’s Approach in OPEC
by Erfan Ghassempour
Iran is thinking seriously about how to put its crude oil back on the market, and—following the November 2013 Geneva interim agreement on Iran’s nuclear program—is planning for a future when sanctions no longer hamper its oil industry. The country is changing its contracts for the exploration, development, and production of its oil and gas resources to tempt major international oil companies to return to its petroleum sector. Iran’s Petroleum Minister, Bijan Namdar Zanganeh, has expressly invited seven oil giants to invest in Iran after sanctions are lifted.
Iranian ambitions are also reflected in Tehran’s approach to the Organization of Petroleum Exporting Countries (OPEC). At the most recent OPEC meeting, held in December 2013—in the wake of the Geneva nuclear deal—Zanganeh made a powerful impression, warning other members to make room for Iranian crude. One way or another, he declared, Iran plans to increase its oil output to four million barrels per day (bpd), even if prices decrease to twenty dollars per barrel. (Some analysts think that the highest output Iran could achieve in the near-to-medium term after the lifting of sanctions would be 3-3.5 million bpd—but even that would mean a significant increase in Iranian oil exports, which, according to Zanganeh, are now at 1.5 million bpd.)
Iran’s reemergence on the international oil scene comes at a time when developments in other OPEC member states are increasing the likelihood of an appreciable rise in Middle Eastern oil production—e.g., Iraq’s security is improving, and strikes and rebel attacks seem to be ebbing in Libya. Zanganeh argues that, even in this context, Iran’s return to the oil market should have no negative impact on prices. As he told the OPEC Bulletin, over the years other OPEC members had “gone out of the market” for some time, “but when they returned to the market, OPEC knew how to deal with the situation—to create room to maintain the extra capacity, so that these countries can have a good return and for it not to have a bad impact on prices.”
At least on the surface, other OPEC players responded positively to Zanganeh’s message. OPEC’s secretary general, Abdalla el-Badri, welcomed Iran’s return to the market, denying any concern at this prospect. Even Iran’s biggest political and oil rival, in the region, Saudi Arabia (the biggest oil producer in OPEC), welcomed an increase in Iranian production. Saudi Arabia’s Oil Minister, Ali Naimi, told reporters that he did not see a price war on the horizon: “They are welcome, everyone is welcome to put in the market what they can; the market is big and has many variables—when one comes in, another comes out.” Mr. Naimi also stated, “I hope Iran comes back [and] produces all it can.”
Iran is also stepping up its cooperation with Iraq on oil issues. At the December 2013 OPEC meeting, Iraq vigorously defended Iran’s plans to raise oil production, while also making clear that Iraq would remain outside OPEC’s quota system and that other members should decrease their production, if necessary, to make room for both Iran and Iraq. (Iraq’s Deputy Prime Minister for Energy, Hussein al-Shahristani, has announced that his country intends to increase its oil output to nine million bpd by 2020, partly through cooperation with Iran.) Recently, Iraq has been helping Iran to develop new contracts to attract more foreign investment to its oil sector. Baghdad and Tehran have also established a committee to oversee the joint exploitation of fields lying astride the Iranian-Iraqi border. Some analysts think that the two countries are drawing closer to maximize their relative power and influence—on oil-related issues as well as on strategic and political matters—vis-à-vis Saudi Arabia.
As the six-month deadline for the Geneva interim deal approaches, Iran’s determination to produce more crude becomes stronger. If a permanent nuclear deal is reached at the end of six months (that is, on or around July 20), it would mean that sanctions will be lifted and Iran will renew its upstream and downstream activities.
So far, the interim deal has been well implemented. The International Atomic Energy Agency affirms that Iran is fulfilling its commitments; the West has returned some of the Iranian funds that have been frozen in Western banks and has eased some sanctions. None of the parties has been motivated to breach the interim agreement. On the Iranian side, the political and economic atmosphere in Iran suggests that Iranian officials are willing to continue this approach; Supreme Leader Ayatollah Seyed Ali Khamenei has publicly expressed his support for the ongoing nuclear negotiations. On the American side, while some political factions in the United States want President Obama to increase pressure on Iran, this seems more a matter of political posturing than serious action. At this point, there is little appetite in the United States for torpedoing nuclear diplomacy with Iran.
Iran knows that any improvement in its oil industry is dependent on the nuclear talks. As the negotiations progress, Iranian officials are playing a bolder role in the region and in international organizations to which Iran belongs. At the next OPEC meeting in June, Zanganeh is likely to take an even tougher approach than at the previous meeting in December. It seems that other OPEC states are progressively accepting the inevitability of Iran’s return to the international oil scene.
There are two ways in which OPEC can handle prospective increases in Iranian, Iraqi, and Libyan output: other members—especially Saudi Arabia—can decrease production to make room for increased production by others, or the organization can raise its current 30 million bpd production ceiling. Politically as well as economically, much will hinge on what OPEC decides.
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MMR (Measles, Mumps and Rubella) – Vaccine Risk Statement
MMR Vaccine (Measles, Mumps, and Rubella) Is It Safer Than Measles, Mumps and Rubella?
Physicians for Informed Consent | December 2024
… It has not been proven that the MMR vaccine is safer than measles, mumps, and rubella. The vaccine package insert raises questions about safety testing for cancer, genetic mutations, and impaired fertility. Although VAERS tracks some adverse events, it is too inaccurate to measure against the risk of measles, mumps, and rubella. Clinical trials do not have the ability to detect less common adverse reactions, and epidemiological studies are limited by the effects of chance and possible confounders. Safety studies of the MMR vaccine are particularly lacking in statistical power. A review of more than 60 MMR vaccine studies conducted for the Cochrane Library states, “The design and reporting of safety outcomes in MMR vaccine studies, both pre- and post-marketing, are largely inadequate.”19 Because permanent sequelae (aftereffects) from measles, mumps, and rubella are so rare (especially in children with normal levels of vitamin A and infected after birth),6,15-17 the level of accuracy of the research studies available is insufficient to rule out the possibility that the MMR vaccine causes greater death or permanent disability than measles, mumps, and rubella. – Read full article
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