Kiev Refuses to Acknowledge $3.5Bln Gas Debt to Russia
RIA Novosti | May 8, 2014
KIEV – Ukraine does not acknowledge the $3.5 billion debt for Russian gas deliveries earlier announced by Russian energy giant Gazprom, acting Ukrainian Energy Minister Yuriy Prodan said Thursday.
“We cannot accept the figure mentioned by Gazprom because Gazprom includes in this total some calculations that are based on an economically unsound price offered to Ukraine, about $500 per 1,000 cubic meters,” Prodan told reporters in Kiev.
Gazprom said Wednesday that it has not received payments for deliveries of Russian natural gas to Ukraine in April, which brings Kiev’s gas debt to a total of $3.5 billion.
When asked about whether Ukraine was ready to switch to the advance payment system for its gas supplies to Russia, Prodan replied that his country was unable to do that.
Russian President Vladimir Putin said during his annual question-and-answer session on April 19 that Moscow was ready to tolerate Ukraine’s non-payment for Russian gas for another month, but then will switch to advance payments.
Ukraine’s state-run gas company Naftogaz was expected to transfer payments for April deliveries by May 7.
Ukraine refuses to recognize the new gas price of $485.50 per thousand cubic meters, although the sum is fully in line with the contract that the two states signed in 2009.
Kiev wants to buy Russian gas at the old price of $268.50 per thousand cubic meters, which was in place before Russia cancelled two major discounts starting April 1.
In December, Russia offered Ukraine a 25 percent discount from the original price of around $400. The deal was cancelled because of Kiev’s overdue gas bills.
Another discount of $100 per thousand cubic meters of gas was granted by Russia in return for the right to use the Sevastopol port in Crimea to host the Black Sea Fleet. It was annulled shortly after Crimea became a part of Russia in March.
The Kiev Putsch: Rebel Workers Take Power in the East
By James Petras | May 7, 2014
Not since the US and EU took over Eastern Europe, including the Baltic countries, East Germany, Poland, and the Balkans and converted them into military outposts of NATO and economic vassals, have the Western powers moved so aggressively to seize a strategic country, such as the Ukraine, posing an existential threat to Russia.
Up until 2013 the Ukraine was a ‘buffer state’, basically a non-aligned country, with economic ties to both the EU and Russia. Ruled by a regime closely tied to local, European, Israeli and Russian based oligarchs, the political elite was a product of a political upheaval in 2004, (the so-called “Orange Revolution”) funded by the US. Subsequently, for the better part of a decade the Ukraine underwent a failed experiment in Western backed ‘neo-liberal’ economic policies. After nearly two decades of political penetration, the US and EU were deeply entrenched in the political system via long-standing funding of so-called non-governmental organizations (NGOs), political parties and paramilitary groups.
The strategy of the US and EU was to install a pliant regime which would bring Ukraine into the European Common Market and NATO as a subordinate client state. Negotiations between the EU and the Ukraine government proceeded slowly. They eventually faltered because of the onerous conditions demanded by the EU and the more favorable economic concessions and subsidies offered by Russia. Having failed to negotiate the annexation of the Ukraine to the EU, and not willing to await scheduled constitutional elections, the NATO powers activated their well-financed and organized NGOs, client political leaders and armed paramilitary groups to violently overthrow the elected government. The violent putsch succeeded and a US-appointed civilian-military junta took power.
The junta was composed of pliant neo-liberal and chauvinist neo-fascist ‘ministers’. The former were hand-picked by the US, to administer and enforce a new political and economic order, including privatization of public firms and resources, breaking trade and investment ties with Russia, eliminating a treaty allowing the Russian naval base in Crimea and ending military-industrial exports to Russia. The neo-fascists and sectors of the military and police were appointed to ministerial positions in order to violently repress any pro-democracy opposition in the West and East. They oversaw the repression of bilingual speakers (Russian-Ukrainian), institutions and practices – turning the opposition to the US-NATO imposed coup regime into an ethnic opposition. They purged all elected opposition office holders in the West and East and appointed local governors by fiat – essentially creating a martial law regime.
The Strategic Targets of the NATO-Junta
NATOs violent, high-risk seizure of the Ukraine was driven by several strategic military objectives. These included:
1) The ousting of Russia from its military bases in Crimea – turning them into NATO bases facing Russia.
2) The conversion of the Ukraine into a springboard for penetrating Southern Russia and the Caucasus; a forward position to politically manage and support liberal pro-NATO parties and NGOs within Russia.
3) The disruption of key sectors of the Russian military defense industry, linked to the Ukrainian factories, by ending the export of critical engines and parts to Russia.
The Ukraine had long been an important part of the Soviet Union’s military industrial complex. NATO planners behind the putsch were keenly aware that one-third of the Soviet defense industry had remained in the Ukraine after the break-up of the USSR and that forty percent of the Ukraine’s exports to Russia, until recently, consisted of armaments and related machinery. More specifically, the Motor-Sikh plant in Eastern Ukraine manufactured most of the engines for Russian military helicopters including a current contract to supply engines for one thousand attack helicopters. NATO strategists immediately directed their political stooges in Kiev to suspend all military deliveries to Russia, including medium-range air-to air-missiles, inter-continental ballistic missiles, transport planes and space rockets (Financial Times, 4/21/14, p3). US and EU military strategists viewed the Kiev putsch as a way to undermine Russian air, sea and border defenses. President Putin has acknowledged the blow but insists that Russia will be able to substitute domestic production for the critical parts within two years. This means the loss of thousands of skilled factory jobs in Eastern Ukraine.
4. The military encirclement of Russia with forward NATO bases in the Ukraine matching those from the Baltic to the Balkans, from Turkey to the Caucasus and then onward from Georgia into the autonomous Russian Federation.
The US-EU encirclement of Russia is designed to end Russian access to the North Sea, the Black Sea and the Mediterranean. By encircling and confining Russia to an isolated landmass without ‘outlets to the sea’, US-EU empire builders seek to limit Russia’s role as a rival power center and possible counter-weight to its imperial ambitions in the Middle East, North Africa, Southwest Asia and the North Atlantic.
Ukraine Putsch: Integral to Imperial Expansion
The US and EU are intent on destroying independent, nationalist and non-aligned governments throughout the world and converting them into imperial satellites by whatever means are effective. For example, the current NATO-armed mercenary invasion of Syria is directed at overthrowing the nationalist, secular Assad government and establishing a pro-NATO vassal state, regardless of the bloody consequences to the diverse Syrian people. The attack on Syria serves multiple purposes: Eliminating a Russian ally and its Mediterranean naval base; undermining a supporter of Palestine and adversary of Israel; encircling the Islamic Republic of Iran and the powerful militant Hezbollah Party in Lebanon and establishing new military bases on Syrian soil.
The NATO seizure of the Ukraine has a multiplier effect that reaches ‘upward’ toward Russia and ‘downward’ toward the Middle East and consolidates control over its vast oil wealth.
The recent NATO wars against Russian allies or trading partners confirm this prognosis. In Libya, the independent, non-aligned policies of the Gaddafi regime stood out in stark contrast to the servile Western satellites like Morocco, Egypt, and Tunisia. Gaddafi was overthrown and Libya destroyed via a massive NATO air assault. Egypt’s mass popular anti-Mubarak rebellion and emerging democracy were subverted by a military coup and eventually returned the country to the US-Israeli-NATO orbit – under a brutal dictator. Armed incursions by NATO proxy, Israel, against Hamas in Gaza and Hezbollah in Lebanon as well as the US-EU sanctions against Iran are all directed against potential allies or trading partners of Russia.
The US has moved forcefully from encircling Russia via ‘elections and free markets’ in Eastern Europe to relying on military force, death squads, terror and economic sanctions in the Ukraine, the Caucasus, the Middle East and Asia.
Regime Change in Russia: from Global Power to Vassal State
Washington’s strategic objective is to isolate Russia from without, undermine its military capability and erode its economy, in order to strengthen NATO’s political and economic collaborators inside Russia – leading to its further fragmentation and return to the semi-vassal status.
The imperial strategic goal is to place neo-liberal political proxies in power in Moscow, just like the ones who oversaw the pillage and destruction of Russia during the infamous Yeltsin decade. The US-EU power grab in the Ukraine is a big step in that direction.
Evaluating the Encirclement and Conquest Strategy
So far NATO’s seizure of the Ukraine has not moved forward as planned. First of all, the violent seizure of power by overtly pro-NATO elites openly reneging on military treaty agreements with Russia over bases in Crimea, had forced Russia to intervene in support of the local, overwhelmingly ethnic Russian population. Following a free and open referendum, Russia annexed the region and secured its strategic military presence.
While Russia retained its naval presence on the Black Sea … the NATO junta in Kiev unleashed a large-scale military offensive against the pro-democracy, anti-coup Russian-speaking majority in the eastern half of the Ukraine who have been demanding a federal form of government reflecting Ukraine’s cultural diversity. The US-EU promoted a “military response” to mass popular dissent and encouraged the coup-regime to eliminate the civil rights of the Russian speaking majority through neo-Nazi terror and to force the population to accept junta-appointed regional rulers in place of their elected leaders. In response to this repression, popular self-defense committees and local militias quickly sprang up and the Ukrainian army was initially forced back with thousands of soldiers refusing to shoot their own compatriots on behalf of the Western-installed regime in Kiev. For a while, the NATO-backed neo-liberal-neo-fascist coalition junta had to contend with the disintegration of its ‘power base’. At the same time, ‘aid’ from the EU, IMF, and the US failed to compensate for the cut-off of Russian trade and energy subsidies. Under the advise of visiting US CIA Director, Brenner, the Kiev Junta then dispatched its elite ‘special forces’ trained by the CIA and FBI to carry out massacres against pro-democracy civilians and popular militias. They bussed in armed thugs to the diverse city of Odessa who staged an ‘exemplary’ massacre: Burning the city’s major trade union headquarters and slaughtering 41, mostly unarmed civilians who were trapped in the building with its exits blocked by neo-Nazis. The dead included many women and teenagers who had sought shelter from the rampaging neo-Nazis. The survivors were brutally beaten and imprisoned by the ‘police’ who had passively watched while the building burned.
The Coming Collapse of the Putsch-Junta
Obama’s Ukraine power grab and his efforts to isolate Russia have provoked some opposition in the EU. Clearly US sanctions prejudice major European multi-nationals with deep ties in Russia. The US military build-up in Eastern Europe, the Balkans, and the Black Sea raises tensions and threatens a large-scale military conflagration, disrupting major economic contracts. US-EU threats on Russia’s border have increased popular support for President Putin and strengthened the Russian leadership. The strategic power grab in the Ukraine has radicalized and deepened the polarization of Ukrainian politics-between neo-fascist and pro-democracy forces.
While the imperial strategists are extending and escalating their military build-up in Estonia and Poland and pouring arms into the Ukraine, the entire power grab rests on very precarious political and economic foundations- which could collapse within the year – amidst a bloody civil war/inter-ethnic slaughter.
The Ukraine junta has already lost political control of over a third of the country to pro-democracy, anti-coup movements and self-defense militias. By cutting off strategic exports to Russia to serve US military interests, the Ukraine lost one of its most important markets, which cannot be replaced. Under NATO control, Ukraine will have to buy NATO-specified military hardware leading to the closure of its factories geared to the Russian market. The loss of Russian trade is already leading to mass unemployment, especially among skilled industrial workers in the East who may be forced to immigrate to Russia. Ballooning trade deficits and the erosion of state revenues will bring a total economic collapse. As a result of the Kiev junta’s submission to NATO, the Ukraine has lost billions of dollars in subsidized energy from Russia. High energy costs make Ukrainian industries non-competitive in global markets. In order to secure loans from the IMF and the EU, the junta has agreed to eliminate food and energy price subsidies, severely depressing household incomes and plunging pensioners into destitution. Bankruptcies are on the rise, as imports from the EU and elsewhere displace formerly protected local industries.
No new investments are flowing in because of the violence, instability and conflicts between neo-fascists and neo-liberals within he junta. Just to stabilize the day-to-day operations of government, the junta needs a no-interest $30 billion dollar handout – from its NATO patrons, an amount, which is not forthcoming now or in the immediate future.
It is clear that NATO ‘strategists’ who planned the putsch were only thinking about weakening Russia militarily and gave no thought to the political, economic, and social costs of sustaining a puppet regime in Kiev when Ukraine had been so dependent on Russian markets, loans, and subsidized energy. Moreover, they appear to have overlooked the political, industrial, and agricultural dynamics of the predictably hostile Eastern regions of the country. Alternately, Washington strategists may have based their calculations on instigating a Yugoslavia-style break-up accompanied by massive ethnic cleansing amidst population transfers and slaughter. Undeterred by the millions of civilian casualties, Washington considers its policy of dismantling Yugoslavia, Iraq, and Libya to have been great political-military successes.
Ukraine most certainly will enter a prolonged and deep depression, including a precipitous decline in its exports, employment, and output. Possibly, economic collapse will lead to nationwide protests and social unrest: spreading from East to West, from South to North. Social upheavals and mass misery may further undermine the morale of the Ukrainian armed forces. Even now, Kiev can barely afford to feed its soldiers and has to rely on neo-Fascist volunteer militias who may be hard to control. The US-EU are not likely to intervene directly with a Libya-style bombing campaign since they would face a prolonged war on Russia’s border at a time when public opinion in the US is suffering from imperial war exhaustion, and European business interests with links to Russian resource companies are resisting consequential sanctions.
The US-EU putsch has produced a failing regime and a society riven by violent conflicts – spinning into open ethnic violence. What, in fact, has ensued is a system of dual power with contenders cutting across regional boundaries. The Kiev junta lacks the coherence and stability to serve as a reliable NATO military link in the encirclement of Russia. On the contrary, US-EU sanctions, military threats and bellicose rhetoric are forcing Russians to quickly rethink their ‘openness’ to the West. The strategic threats to its national security are leading Russia to review its ties to Western banks and corporations. Russia may have to resort to a policy of expanded industrialization via public investments and import substitution. Russian oligarchs, having lost their overseas holdings, may become less central to Russian economic policy.
What is clear is that the power grab in Kiev will not result in a ‘knife pointed at the heartland of Russia’. The ultimate defeat and overthrow of the Kiev junta can lead to a radicalized self-governing Ukraine, based on the burgeoning democratic movements and rising working class consciousness. This will have to emerge from their struggle against IMF austerity programs and Western asset stripping of Ukraine’s resources and enterprises. The industrial workers of Ukraine who succeed in throwing off the yoke of the western vassals in Kiev have no intention of submitting themselves to the yoke of the Russian oligarchs. Their struggle is for a democratic state, capable of developing an independent economic policy, free of imperial military alliances.
Epilogue:
May Day 2014: Dual Popular Power in the East, Fascism Rising in the West
The predictable falling out between the neo-fascists and neo-liberal partners in the Kiev junta was evidenced by large-scale riots, between rival street gangs and police on May Day. The US-EU strategy envisioned using the neo-fascists as ‘shock troops’ and street fighters in overthrowing the elected regime of Yankovich and later discarding them. As exemplified by the notorious taped conversation between Assistant Secretary of State, Victoria Nuland and the US Ambassador to Kiev, the EU-US strategists promote their own handpicked neo-liberal proxies to represent foreign capital, impose austerity policies and sign treaties for foreign military bases. In contrast, the neo-fascist militias and parties would favor nationalist economic policies, retaining state enterprises and are likely to be hostile to oligarchs, especially those with ‘dual Israeli-Ukraine’ citizenship.
The Kiev junta’s inability to develop an economic strategy, its violent seizure of power and repression of pro-democracy dissidents in the East has led to a situation of ‘dual power’. In many cases, troops sent to repress the pro-democracy movements have abandoned their weapons, abandoned the Kiev junta and joined the self-governing movements in the East.
Apart from its outside backers-the White House, Brussels and IMF – the Kiev junta has been abandoned by its right-wing allies in Kiev for being too subservient to NATO and resisted by the pro-democracy movement in the East for being authoritarian and centralist. The Kiev junta has fallen between two chairs: it lacks legitimacy among most Ukrainians and has lost control of all but a small patch of land occupied by government offices in Kiev and even those are under siege by the neo-fascist right and increasingly from its own disenchanted former supporters.
Let us be absolutely clear, the struggle in the Ukraine is not between the US and Russia, it is between a NATO-imposed junta composed of neo-liberal oligarchs and fascists on one side and the industrial workers and their local militias and democratic councils on the other. The former defends and obeys the IMF and Washington; the latter relies on the productive capacity of local industry and rules by responding to the majority.
When Our Land is Free, We are Free
By Silas Kpanan’Ayoung Siakor & Jacinta Fay | The Ecologist | May 7, 2014
Right now in Abuja, Nigeria, agribusiness corporations are courting African governments at the Grow Africa Investment Forum to “further accelerate sustainable agricultural growth in Africa”.
That sounds harmless enough, until you know what it really means. Corporate interest in agriculture in Africa has certainly accelerated corporate control of land, seeds and water. But it has done little to support agriculture that will feed the continent.
Rather than support family farming and smallholder agriculture, private sector investment in agriculture has resulted in grabbing land from communities – the land which they farm sustainably and rely on for their survival.
Resisting the corporate bully boys
Communities are resisting this corporate takeover of their land and they are winning. All over Africa people are sending a clear message to their governments: “Stop selling Africa to corporations!” The Jogbahn Clan in Liberia is one such community and here is their story.
The sense of jubilation in Blayahstown, small town in Liberia, is palpable. People come from surrounding villages to join in the celebrations and the town is filled with singing and dancing.
The Jogbahn Clan is celebrating a victory as the President of Liberia has now recognised their right to say no Equatorial Palm Oil (EPO) a British palm oil company grabbing their land.
This is no small feat in a country where over 50% of the land has been given to corporations without the consent of the communities who customarily own the land.
We come from this land – it is ours!
The sense of accomplishment is not lost on Chief Elder Chio Johnson who looks like he hasn’t stopped smiling since he returned from the Clan’s meeting with the President of Liberia – where she committed to support them in protecting their land from being grabbed by EPO.
“Why should a company take away our livelihood?” asked Chio. “We come from this land. Everything our ancestors left us is preserved in the forest, so why should we give up our forest?”
Walking through the forest with Deyeatee Kardor, the Clan’s Chairlady, she picks leaves and describes the different medicines that they can be used for. She recounts how she and her family hid in the forest throughout the Civil War and managed to survive on the plants and fruits growing in the bush.
Though the land bears the scars of the recent past it also represents the Clan’s ancestral home and they would not willingly allow this deep connection to the land to be fractured.
20,000 hectares of community land given away
“The land gives us everything”, Chio says as he surveys the area; the vegetables, wild palm and sugar cane growing all around. Like other rural communities in Liberia they make their livelihood from the land they manage collectively.
The clan are self-sufficient and manage the land sustainably. For the Clan, to lose their land is to lose everything.
The communities’ resistance began in 2012 when EPO began to expand their plantation onto the community land of eleven towns. The Government of Liberia and EPO had signed a concession agreement allowing the company’s plantation to engulf communities’ land amounting to over 20,000 hectares.
Communities all over Liberia are facing the same threat as their lands are given to companies without their consent. As a result conflict between communities and companies has been widespread.
Police and EPO security intimidation
The Clan organised and came together to resist their land being grabbed. Men, women and youth from the affected towns chose representatives to form a core group to lead the resistance.
They met the company and the government several times to object to the company’s expansion. In spite of this towards the end of 2012 EPO began clearing and planting their land, destroying crops and farmland.
In September 2013 EPO began surveying the communities’ land without their consent. When the communities attempted to stop the survey a paramilitary police unit was deployed into the area, and began to run a campaign of harassment and intimidation by both the police and EPO’s security force.
They drove through villages at night flashing their emergency lights and arrived in villages riding on top of vehicles the same way rebel fighters did during the war.
People were also assaulted during a peaceful march and 17 people suffered arbitrary arrest. The Clan Chief was also suspended from his position by the government because he spoke out against the company.
Divide and rule – this time, it failed
Despite these aggressive tactics the community continued resisting. They lodged a complaint to the Roundtable on Sustainable Palm Oil (RSPO) and presented a petition to the government stating their objections.
“All they have done is try to divide us”, commented Deyeatee. “They offer important people a little money to try to convince them.”
However the community refused to be weakened by division and eventually secured the crucial meeting with the Liberian President Ellen Johnson Sirleaf where she recognised their right to say ‘no’ to the company.
“The struggle has made us stronger than ever before and we’ve learned a lesson to stay united”, said Anthony Johnson, a youth representative.
“The success is so great as it secures my future and the future of my children to come. I will stay on this land and plant crops for my children so future generations can live off the land.”
But for EPO, it’s business as usual
Despite the President’s commitment EPO has still not recognised that the Clan has said no to their operations. They are operating as if things are business as usual and conducting studies of the Clan’s land in preparation for clearing.
But the Clan are not discouraged and they continue their resistance for the hope of a better future.
Land clearance and other preparatory activities would be unlawful, as they do not respect communities’ right to give or withhold their Free Prior and Informed Consent, which is a requirement provided for under both national and international law.
“We want the government to support us to be self-sufficient on our land instead of giving it to a company who will just take the money and go home”, said Garmondeh Benwon, who suffered assault on the march. ”Instead we can keep the money in Liberia and we can live better lives.”
Organise and resist!
Every year, an area five times the land size of Liberia is grabbed from communities around the world. The Jogbahn Clan show that stopping it is possible when communities stand together, mobilise and resist.
The government has recognised their right to say no – and now EPO and KLK, their majority shareholder, must do the same.
It is a privilege to work in solidarity with the Clan and their drive and resilience has been a constant source of inspiration for everyone in SDI / FoE Liberia.
The Clan are preparing to share the lessons of their struggle and give hope to other communities resisting land-grabbing. And as Deyeatee says:
“I am very happy my land is free – because when our land is free, we’re all free.”
Silas Siakor is a campaigner on Community Rights and the founder of the Sustainable Development Institute/Friends of the Earth, Liberia a national civil society organisation promoting the sustainable and just use of Liberia’s natural resources. Silas has received the Goldman Environmental Prize in 2006, the Award for Extraordinary Achievement in Environmental and Human Rights Activism from The Alexander Soros Foundation in 2012 and TIME Magazine chose him as one of the 2008 Heroes of the Environment.
Jacinta Fay is a community worker and campaigner for the Community Rights and Corporate Governance Programme of the Sustainable Development Institute/Friends of the Earth Liberia which supports communities protect their land and resources and challenges corporate and government actions which threaten community rights. She is also Landgrab Campaigner for Friends of the Earth International which works to challenge landgrabbing, defend community territories and protect land rights. She also campaigns on trade justice, reproductive rights and social justice.
Twitter: Join the conversation on Twitter #stopEPO
Petition: Support the Jogbahn Clan to protect their land and resources: Landgrabbing in Liberia: Tell Equatorial Palm Oil NO means NO!
EPO backgrounder: EPO’s majority shareholder is the Malaysian company KLK, widely known to use child labor and other egregious practices. In turn, US-based investment company Dimensional Fund Advisors holds over $12 million in KLK. DFA also holds over $2.5 billion in companies with significant stakes in the palm oil sector. And DFA is partly owned by Arnold Schwarzenegger – who claims to care a great deal about saving forests. DFA also manages money for a wide range of US clients, from cities’ endowments to pension funds.
Evo’s Bolivia: Continuity and Change
By Linda C. Farthing and Benjamin H. Kohl
Out now. An accessible account of Evo Morales’s first six years in office, offering analysis of major issues as well as interviews with a wide variety of people, resulting in a valuable primer on Bolivia and Morales’s “process of change”.
In this compelling and comprehensive look at the rise of Evo Morales and Bolivia’s Movimiento al Socialismo (MAS), Linda Farthing and Benjamin Kohl offer a thoughtful evaluation of the transformations ushered in by the western hemisphere’s first contemporary indigenous president. Accessible to all readers, Evo’s Bolivia not only charts Evo’s rise to power but also offers a history of and context for the MAS revolution’s place in the rising “pink tide” of the political left. Farthing and Kohl examine the many social movements whose agendas have set the political climate in Bolivia and describe the difficult conditions the administration inherited. They evaluate the results of Evo’s policies by examining a variety of measures, including poverty; health care and education reform; natural resources and development; and women’s, indigenous, and minority rights. Weighing the positive with the negative, the authors offer a balanced assessment of the results and shortcomings of the first six.
Stopping Cleveland’s Corporate Freeloaders
By Ralph Nader | May 1, 2014
On May 6th, Cleveland taxpayers will go to the polls to vote on Issue 7. A no vote will prevent an increase in taxpayer money to the already subsidized, big league sports arenas. A yes vote will reaffirm taxpayer servitude to arrogant corporatists and their cruel, twisted mistreatment of that struggling city.
When I was growing up, tax dollars for public works were used for serious public services. Taxpayers paid to build schools, highways, bridges, libraries, health clinics, public transit and other community needs. Tax dollars were not given over to the mega-rich’s profitable athletic playpens. To even suggest tax money for private major league baseball parks would get you laughed or ridiculed out of town.
Now, there are football, baseball and basketball facilities for the NFL, MLB and NBA leagues (plus other professional sports) that are built and renovated using taxpayer dollars often without majority public support. That is why the sports giants try to avoid referenda and, often with campaign contributions, focus instead on persuading Mayors and Governors.
When big league sports mavens cannot avoid a public vote, they mislead the public with claims that building sports venues is a cost-effective way to produce jobs, but most economists know that building sports facilities is definitely not a cost-effective way to create jobs. Visit League of Fans for more information. And, when empty promises fail, the sports kings threaten to move their teams to another town.
When all that fails, the sports barons go for sin taxes and other micro-targeted tabs (such as parking tax, admissions tax, bed tax, video game tax, rental car tax, and property tax exemption), in addition to keeping high prices for tickets, food and parking to begin with.
This is the situation in Cleveland – a deindustrialized, unfairly poor metropolis, with the largest employer now being the Cleveland Clinic. The more affluent people can go to see the Cleveland Browns, the Cleveland Indians and the Cleveland Cavaliers – whose facilities are named for companies instead of being called “Taxpayers Stadium, Arena and Field.”
The super-rich sports owners, or corporate welfare kings, know “sin taxes” help get more votes for their stadiums. Issue 7 is linked to a 20-year sin tax on alcohol and cigarettes which will be paid by Cuyahoga County residents, totaling between $250 to $350 million. The money will go to “constructing, renovating, improving, or repairing spectator sports facilities.” You can be sure the money will not be going to neighborhood sports programs or playgrounds, otherwise known as participatory sports.
The proposed taxes exclude adjoining counties where fifty percent or more of the paying fans live. Cuyahoga County, which includes the city of Cleveland, already has higher sales and school property taxes than the adjoining counties. Unemployment, prices of necessities and inequality have sky-rocketed in beleaguered Cuyahoga County according to Roldo Bartimole, arguably Cleveland’s greatest investigative reporter of the past half century (see the Cleveland Leader for more information). Any increased taxes – sin or otherwise – should be devoted to the necessities of the local community, not for entertainment.
Big-time sports bosses know that the trump card that enables them to continue with their freeloading ways as crony capitalists is to exploit the spectator joy that comes from being part of a local fan base. The subtext of these demands takes away that joy from those TV watching fans by relocating to another city willing to give away the store. It all reeks of greed, power and extortion.
Rest assured Clevelanders, the Browns, Indians and Cavaliers are going nowhere. They know how much of the “store” (over $1 billion since 1990) your politicians have already given them. The sports bosses like to call themselves capitalists. So let them behave like capitalists and invest their own money and no longer dare to turn your tax dollars into their profits.
The Coalition Against the Sin Tax (CAST) wants full disclosure of the secret “obligations” imposed on the public in these existing corporate welfare contracts so that residents can know what’s going on with their pocketbooks (see the Coalition Against the Sin Tax for more information).
“Who us worry?” non-Clevelanders might be saying. Better think again. The greedy sports billionaires are all over the country. They never stop expanding their mounting wealth at other people’s expense. Until you stop them.
Russian sanctions, NSA spying top the agenda at Merkel’s White House visit
RT | May 02, 2014
Germany’s Chancellor Merkel is in the White House for the first time since it was revealed the NSA monitored her personal communications. During bilateral talks with Barack Obama, Merkel is expected to broach sanctions on Russia and US spying.
Relations between Washington and Berlin are showing signs of tensions, as German companies call for a halt to sanctions on Russia. Furthermore, Germany is still reeling from the NSA spy revelations that affected millions of German citizens, as well as high-ranking businessmen and politicians.
Merkel reiterated earlier this week that Germany would support any further financial sanctions against Russia. However, growing calls from the German business sector may force her to change her policy in Friday’s meeting.
“The Germans are very clear they are not going to pursue factions that hurt German industry. That would be the straw that broke the camel’s back,” said Michael Hudson professor of Economics at the University of Missouri to RT.
Indeed, some major corporate figures have already spoken out against a potential escalation of the sanctions, maintaining they will do more harm than good to the German economy.
“If there’s a single message we have as business leaders, then it’s this: sit down at the negotiating table and resolve these matters peacefully,” Eckhard Cordes told a recent conference in Berlin. Cordes is a former Daimler AG executive who now heads the Ostauschuss, German industry’s branch for Eastern Europe, reported the Wall Street Journal.
So far the US, EU, Canada and Japan have imposed sanction on Russia for its alleged role in the unrest in eastern Ukraine. Moscow has denied claims it is involved in the unrest and has pointed the finger at Washington for orchestrating the situation in Ukraine as part of its geopolitical strategy in the region.
NSA spying
The espionage antics of the US National Security Agency remain a bone of contention between Berlin and Washington. It emerged earlier in April that Merkel had been denied access to her NSA file, following reports the agency had monitored her personal communications. The revelations had a profound effect on German society, prompting calls for Washington to account for its actions.
“First the US denied spying on Merkel’s cell phone, then admitted it, now it just continues, because Obama says ‘we reserve the right to collect information.’ I just see Angela Merkel going to the US to pick up new instructions,” Ken Jebson, Redaktion radio host told RT’s Peter Oliver.
While WikiLeaks spokesperson Kristinn Hrafsson, said the German government’s lack of resolve over the NSA spy scandal is indicative of European cowardice in the face of US dominance.
“I think the proof of the cowardice of governments and politicians and their unwillingness to tackle this in a meaningful way, despite what they say publicly, was when European countries closed their airspace and forced the presidential plane of Evo Morales to land in Austria, on a hunch that Edward Snowden was on board,” he told RT.
Earlier this year Washington pledged that it would no longer spy on world leaders, but stated it would still gather information on the intentions of foreign powers through its espionage programs.
Movement Against European Union Takes Shape in Greece
Prensa Latina | May 1, 2014
Athens – Three political groups, faced with the coming European elections, presented in this capital a coordination communique today, in which they expressed their rejection of the European Union (EU) and the euro.
The French People’s Republican Union, the Finnish Independence Party and the Greek People’s Unitary Front announced their support for participation in the European call to elections in May.
In their proposal, they are demanding emancipation of the continent’s countries from the EU, an anti-democratic organization at the service of the financial and economic oligarchy, the interests of which are clearly against the interests of the citizens of the continent.
These parties are trying “to warn electors about what is at stake in the current European structure,” spreading the message that “to reestablish democracy in our respective countries, it is unavoidably necessary to oust the EU and the euro.”
IMF gives green light for $17 bn Ukraine aid package
RT | April 30, 2014
The International Monetary Fund has approved a two-year $17.1 billion loan package for Ukraine. The immediate disbursement of $3.2 billion will allow Ukraine to avoid a potential debt default.
The IMF’s 24-member board agreed to the two-year program to aid Ukraine’s troubled economy on Wednesday.
The approval gives the green light for the immediate release of $3.2 billion to Ukraine, which will allow the nation not to fall into default, Reuters reports. More than half of that money will be dedicated to supporting the country’s budget.
The package will open up loans from other donors totaling around $15 billion. The goal is for Ukraine to use the money to stabilize its economy.
“The authorities’ economic program supported by the Fund aims to restore macroeconomic stability, strengthen economic governance and transparency, and launch sound and sustainable economic growth, while protecting the most vulnerable,” the IMF said in a statement.
IMF managing director Christine Lagarde commented on the aid package, stating that the plan may come with geopolitical and implementation risks.
“On the implementation front, we are taking all the precautions we can in order to mitigate those risks,” Lagarde told reporters on Wednesday. “On the geopolitical front, clearly the bilateral international support, and the cooperation of all parties, will be extremely helpful to reinforce the position of the economy of Ukraine.”
“We believe that Ukraine has an opportunity to seize the moment, to break away from previous practices, both from the fiscal, from the monetary, and from the governance point of view,” Lagarde added.
Ukraine’s crisis was exacerbated after months of anti-government protests and Crimea’s referendum to join Russia.
The country’s economy is forecast to contract by three percent due to the chaos and lack of order, according to Ukrainian authorities. The nation’s output dropped 1.1 percent in the first quarter of 2014.
The ongoing protests, especially in the east of the country, are not helping the nation get its economy back on track. In fact, Ukraine’s acting President Aleksandr Turchinov said on Wednesday that Kiev’s government cannot control the situation in the east of the country, and called to speed up the creation of regional militias loyal to Kiev.
In return for the aid package, Ukraine promised to implement a number of reforms, including increasing gas prices by more than 50 percent for domestic households.
Earlier in April, Ukraine’s finance minister, Oleksandr Shlapak, said that paying off debt to Russia would not be a top priority for Ukraine when it secured its first tranche of International Monetary (IMF) bailout cash.
Ukraine’s total debt to Russia, including the $2.2 billion bill for gas, now stands at $16.6 billion, Prime Minister Dmitry Medvedev said.
Trans-Atlantic global leadership at stake in Ukraine – Kerry
“NATO, the planet’s strongest alliance… can absolutely take advantage of the opportunities that are presented by crisis”
RT | April 30, 2014
NATO must return to its original goal of fending off Russia, seizing the chance presented by the Ukrainian crisis to sever Europe from Moscow and move it closer to America, the US secretary of state said. Or else the bloc’s global leadership may be lost.
John Kerry delivered the confrontational call in a speech to the Atlantic Council think tank in Washington, DC. He said the stand-off in Ukraine had resulted from a “uniquely personally-driven set of choices” and is “a wake-up call” for NATO. He added that now the military bloc must turn the page on two decades of focusing on expeditionary operations and take a stand against “Putin’s Russia.”
“After two decades of focusing primarily on our expeditionary missions, the crisis in Ukraine now call us back to the work that this alliance was originally created to perform,” Kerry told the audience.
NATO’s original purpose was to oppose the Communist Soviet Union, giving the West the military backbone to the ideologically-driven stand-off with the East. Kerry described it as “to defend alliance territory and advance trans-Atlantic security.”
“Today, Putin’s Russia is playing by a different set of rules,” the secretary stated. “Through its occupation of Crimea and its subsequent destabilization of eastern Ukraine, Russia seeks to change the security landscape of Eastern and Central Europe.”
“Together we have to push back against those who try to change sovereign border by force. Together we have to support those who simply want to live as we do,” he added.
Kerry didn’t mention NATO’s own operations against Yugoslavia, which helped change sovereign borders in Europe. But he said NATO must not allow that the situation continue to develop as it is, because Russia is challenging the position NATO members have held since the end of the Cold War.
“Our entire model of global leadership is at stake. If we stand together, if we draw strength from the example of the past and refuse to be complacent in the present, then I am confident that NATO, the planet’s strongest alliance, can meet the challenges, can absolutely take advantage of the opportunities that are presented by crisis,” he stressed.
Kerry suggested three points on how trans-Atlantic partners can preserve their leadership and contain Russia. He said all NATO members must comply with the alliance’s benchmark of 2 percent GDP defense spending, which is not observed by many European members of the alliance, including European economic powerhouse Germany.
“Clearly, not all allies are going to meet the NATO benchmark of 2 percent of GDP overnight or even next year,” Kerry said. “But it’s time for allies, who are below that level to make credible commitments to increase their spending on defense over the next five years.”
NATO members must also help Europe reduce its dependence on Russian energy and develop economic ties with America by speeding down the pipeline the Trans-Atlantic Trade and Investment Partnership Agreement, Kerry said.
The agreement would certainly give more access to European markets to some US corporations, as it would require freeing up European regulations on things like fracking, GMOs, copyright and finance.
Kerry’s policy remarks are in line with those made recently by some other members of the US political establishment. For example Senator John McCain, one of the most vocal critics of Russia, went on the same lines of presenting Russia’s stance on Ukraine a personal choice by President Vladimir Putin and calling for more defense spending in Europe in his speech at Vilnius University, Lithuania, on Wednesday last week.
“Considering what President Putin is doing right now in Ukraine, it is more important than ever for every NATO ally to spend at least 2 percent of its GDP on defense,” McCain said. “I’m pleased that Lithuania has pledged and is planning to do this, and the sooner you follow through on that commitment the better.”
The US and Russia have been trading accusations of meddling with Ukrainian crisis lately. Washington says Moscow is sowing dissent in eastern Ukraine, fanning up anti-government protests there. Russia says the US sponsored the February coup in Kiev, which brought into power the current Ukrainian central authorities and has been playing a dominant role in defining the policies of the new government.
Meet TISA: Another Major Treaty Negotiated In Secret Alongside TPP And TTIP
By Glyn Moody | Techdirt | April 29, 2014
This Wednesday evening there is to be a “Public Information Session and Discussion” (pdf) about TISA: the Trade in Services Agreement. If, like me, you’ve never heard of this, you might think it’s a new initiative. But it turns out that it’s been under way for more than a year: the previous USTR, Ron Kirk, informed Congress about it back in January 2013 (pdf). Aside from the occasional laconic press release from the USTR, a page put together by the Australian government, and a rather poorly-publicized consultation by the European Commission last year, there has been almost no public information about this agreement. A cynic might even think they were trying to keep it quiet.
Perhaps the best introduction to TISA comes from the Public Services International (PSI) organization, a global trade union federation representing 20 million people working in public services in 150 countries. Last year, it released a naturally skeptical brief on the proposed agreement (pdf):
At the beginning of 2012, about 20 WTO members (the EU counted as one) calling themselves “The Really Good Friends of Services” (RGF) launched secret unofficial talks towards drafting a treaty that would further liberalize trade and investment in services, and expand “regulatory disciplines” on all services sectors, including many public services. The “disciplines,” or treaty rules, would provide all foreign providers access to domestic markets at “no less favorable” conditions as domestic suppliers and would restrict governments’ ability to regulate, purchase and provide services. This would essentially change the regulation of many public and privatized or commercial services from serving the public interest to serving the profit interests of private, foreign corporations.
The Australian government’s TISA page fills in some details:
The TiSA negotiations will cover all services sectors. In addition to improved market access commitments, the negotiations also provide an opportunity to develop new disciplines (or trade rules) in areas where there has been significant developments since the WTO Uruguay Round negotiations. There negotiations will cover financial services; ICT services (including telecommunications and e-commerce); professional services; maritime transport services; air transport services, competitive delivery services; energy services; temporary entry of business persons; government procurement; and new rules on domestic regulation to ensure regulatory settings do not operate as a barrier to trade in services.
If that sounds familiar, it’s because very similar language is used to describe TAFTA/TTIP, which aims to liberalize trade and investment, to provide foreign investors with access to domestic markets on the same terms as local suppliers, to limit a government’s ability to regulate there by removing “non-tariff barriers” — described above as “regulatory settings” — and to use corporate sovereignty provisions to enforce investors’ rights.
Those similarities suggest TISA is part of a larger plan that includes not just TAFTA/TTIP, but TPP too, and which aims to cement the dominance of the US and EU in world trade against a background of Asia’s growing power. Indeed, it’s striking how membership of TISA coincides almost exactly with that of TTIP added to TPP:
The 23 TiSA parties currently comprise: Australia, Canada, Chile, Chinese Taipei, Colombia, Costa Rica, European Union (representing its 28 Member States), Hong Kong, Iceland, Israel, Japan, Liechtenstein, Mexico, New Zealand, Norway, Pakistan, Panama, Paraguay, Peru, Republic of Korea, Switzerland,, Turkey and the United States.
Once more, the rising economies of the BRICS nations — Brazil, Russia, India, China, South Africa — are all absent, and the clear intent, as with TTIP and TPP, is to impose the West’s terms on them. That’s explicitly recognized by one of the chief proponents of TISA, the European Services Forum:
the possible future agreement would for the time being fall short of the participation of some of the leading emerging economies, notably Brazil, China, India and the ASEAN countries. It is not desirable that all those countries would reap the benefits of the possible future agreement without in turn having to contribute to it and to be bound by its rules.
The Australian government’s page reveals that there have already been five rounds of negotiations — all held behind closed doors, of course, just as with TTIP and TPP. The Public Information Session taking place in Geneva this week seems to mark the start of a new phase in those negotiations, at least allowing some token transparency. Perhaps this has been provoked by the growing public anger over the secrecy surrounding TPP and TAFTA/TTIP, and fears that the longer TISA was kept out of the limelight, the worse the reaction would be when people found out about it.It seems appropriate, then, that the unexpected unveiling of this new global agreement should be greeted not only by an updated and more in-depth critique from the PSI — “TISA versus Public Services” — but also the first anti-TISA day of protest. Somehow, I don’t think it will be the last.
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Obama Ends Asian Tour With Little to Show for it
Prensa Latina | April 29, 2014
Manila – U.S. President Barack Obama ended a tour today that included four Asian countries, accomplishing only the signing of a military agreement with the Philippines.
Of all the issues in Obama’s agenda, that was the only agreement to be brought to fruition, while Japan delayed its joining to a free trade agreement and Malaysia did not sign on either.
Obama’s South Korean stopover included a confirmation of Washington’s military reinforcement to Seoul, but the president met with no success in his attempt to improve relations with Tokyo, a regional ally.
The defense and security agreement with the Philippines will facilitate a greater U.S. naval presence in the archipelago, but thousands of people took the streets to protest the visit and the agreement.
Although the White House backs the Philippines in a territorial dispute with China, Obama clarified that the bilateral agreement does not aim at Beijing, with whom the United States maintains a constructive relationship.
Obama’s Asian tour cost taxpayers almost one billion USD, taking into account that a single day abroad for Obama costs more than $100 million USD.
Obama rolls out new sanctions on Russia, Moscow says it won’t hurt
RT | April 28, 2014
New round of Western sanction against Russia will target seven individuals and 17 companies. They are meant to affect Moscow’s stance over the ongoing Ukrainian crisis.
The individuals listed by the US Department of Treasury on Monday include Russian Deputy Prime Minister Dmitry Kozak, chair of the parliamentary commission on Foreign Affairs, Aleksey Pushkov, chief of presidential office, Vyacheslav Volodin, and Igor Sechin, the head of Rosneft oil company.
The list of sanctioned companies, which Washington believes to be “linked to Putin’s inner circle,” includes several banks, construction and transport companies.
The Volga Group, an investment vehicle that manages assets on behalf of the businessman, Gennady Timchenko, and SMP Bank, whose main shareholders were affected by the previous set of US sanctions, are among those to face restrictive measures.
Oil and gas engineering company, Stroytransgaz, and one of Russia’s biggest rail transporters of oil, Transoil, are also among the companies affected by the sanctions.
The US Department of Commerce has introduced additional restrictions on 13 of those companies by imposing a license requirement with a presumption of denial for the export, re-export or other foreign transfer of US-originating items to the companies.
Later in the day, Washington announced a tightened policy to deny export license applications for any high-technology items that could contribute to Russia’s military capabilities.
But the US may move even further and impose sanctions against specific branches of the Russian economy if Moscow begins a military operation in Ukraine, Jay Carney, White House spokesman, said.
The announcement of a new round of US sanctions against Russia is “revolting” as they go against the way civilized states should communicate, Sergey Ryabkov, Russia’s deputy foreign minister, said.
“We will respond, although it is not our choice,” Ryabkov is cited as saying by Itar-Tass news agency. “But we can’t leave this situation without reaction, without practical reaction, without reaction by means of our own decisions. US behavior in the field is becoming provocative.”
According to the deputy FM, the American decision stems from a “distorted and groundless” assumption on the state of affairs in Ukraine.
Obama said the US and its allies would keep broader sanctions “in reserve” in the event of further escalation on the ground in Ukraine. He admitted that he was uncertain whether the latest round of measures would be effective.
“The goal is not to go after Mr. Putin personally; the goal is to change his calculus, to encourage him to walk the walk, not just talk the talk” on diplomacy to resolve the crisis, Obama said in Manila during a trip to Asia.
As the US pushes for more sanctions against Russia, EU members have preliminarily agreed to also impose asset freezes and visa bans on 15 more people. The names of those to be added to the list will not be made public until they are published in the EU’s Official Journal on Tuesday, Reuters reported citing an unnamed diplomat source. However, Many Europeans are opposed anti-Russian sanctions, which would target the economy as opposed to individuals close to the Russian leadership, since economic sanctions would hurt European economies as well as that of Russia. The US, being economically tied with Russia to a much lesser degree than Europe, says it would not impose economic sanctions unilaterally.
“I would be very surprised if all European countries found a common position on economic sanctions,” Thierry Mariani, a member of the French National Assembly, told RT. “When one country says ‘we don’t speak about finance’… and some other country says ‘we don’t speak about energy,’ then we don’t speak about anything. That’s why we arrive unfortunately [at] personal sanctions, which are completely nonsense.”
The Russian leadership has thus far brushed off the threat of sanctions as ineffectual, arguing they might in fact buoy the Russian economy in the long term.
“Over reliance can lead to a loss of sovereignty,” Russian President Vladimir Putin said at a media forum in St Petersburg on Thursday.
Western-led sanctions have several advantages for Russia, Putin said.
Putin said the threat of real economic sanctions is already bolstering domestic businesses, bringing more offshore funds back to Russia, and giving policymakers the push they need to establish a domestic payment system.
His comments echo sentiments made by Russian Prime Minister Dmitry Medvedev last week, who similarly argued that further sanctions would only make Russia stronger.
“Thanks to Western sanctions, Russia has been given the incentive to reduce its dependence on outside and instead regional economies are being more self-sufficient,” Medvedev said April 22.
Medvedev said any restrictions on Russian goods to the EU or US would serve to redirect Russian exports to Asian markets, which are more robust.

