PSA Peugeot Citroen, Renault ready to return to Iran market
Press TV – November 30, 2013
French automakers PSA Peugeot Citroen and Renault are planning to return to Iran’s market following a recent nuclear deal reached between Tehran and six major world powers in Geneva which will ease sanctions on auto industry.
According to the Geneva deal, the EU and US sanctions on Iran’s petrochemical export, gold and precious metals and auto industry as well as the supply of spare parts for the Iranian airplanes would be suspended.
French auto giants are poised to resume vehicle sales in Iran to reclaim their share of the huge Iranian market they lost after the implementation of sanctions against Tehran over its nuclear energy program in 2011.
Peugeot and Renault are among Western companies sending representatives to a crucial auto conference that was to open in the Iranian capital, Tehran, on Saturday.
Their participation in the conference has been interpreted by the media as a sign to mark their early return to the Iranian market before other competitors.
Renault and Peugeot have been production partners of Iran’s domestic majors – Iran Khodro and SAIPA.
Official data show the sanctions against Iran led to the unemployment of 100,000 workers and undermined the output of the two French giants.
A day after the nuclear deal between Iran and the six countries, Peugeot’s shares soared 4.50 percent to 10.69 euros and Renault rose 1.43 percent to 65.35 euros.
Iran used to be Peugeot’s second-biggest market in car sales volumes before Western sanctions against Tehran were toughened. In 2011, Iran accounted for 13 percent of Peugeot’s annual sales.
Peugeot has experienced an estimated four billion euros in lost sales after cutting ties with Iranian automaker Iran Khodro in February 2012 under pressure from its American partner company General Motors.
On July 26, Renault reported a huge fall in profits for the first half of 2013 after writing off the entire value of its business in Iran due to the US-led sanctions against Tehran.
The firm took a 512-million-euro (680-million-dollar) charge after halting its activities in Iran.
Last year, Renault sold a total of 100,783 vehicles in Iran, and had a 10-percent market share. The Middle Eastern country was Renault’s eighth-biggest global market by sales, above Italy where Renault sold 96,144 units and Spain where it sold 83,366 cars.
On November 24, Iran and the five permanent members of the United Nations Security Council – Russia, China, France, Britain and the US – plus Germany sealed an interim deal in the Swiss city of Geneva to lay the groundwork for the full resolution of the West’s decade-old dispute with Iran over its nuclear energy program.
Related article
- Iran Accord Sparks Race to Tehran as Automakers Target Deals (bloomberg.com)
NSA spied on 2010 G8, G20 summits in Toronto with Canadian help
RT | November 28, 2013
The National Security Agency conducted widespread surveillance during the 2010 G8 and G20 summits with the blessing of host country Canada’s government.
Documents supplied by former NSA contractor Edward Snowden show the US converted its Ottawa embassy into a security command for six days in June 2010 as world leaders met in Toronto. The covert operation was known to Canadian authorities, CBC News reported.
The documents do not reveal targets of the espionage by the NSA – and possibly by its counterpart, the Communications Security Establishment of Canada (CSEC). The NSA briefing notes say the operation was “closely co-ordinated with the Canadian partner.”
Ultimately, the documents obtained by the CBC do not give exact specifications of CSEC’s role, if any, in the Toronto spying. Former Guardian reporter and Snowden’s chosen journalist to receive the NSA documents, Glenn Greenwald, co-wrote the story for CBC.
But the documents do spell out that CSEC’s cooperation in the venture was crucial to ensuring access to telecommunications systems needed to spy on targets during the summits.
Both NSA and CSEC were implicated, along with British counterpart GCHQ, for monitoring phone calls and email of foreign leaders and diplomats at the 2009 G20 summit in London. In addition, it was recently reported that CSEC hacked into phones and computers at the Brazilian government’s department of mines. These revelations also came via documents from Snowden, who has received asylum in Russia.
The revelations also contradict a statement made by an NSA spokesman to The Washington Post on August 30, which said that the US Department of Defense – of which the NSA is is part of – “does not engage in economic espionage in any domain, including cyber.”
The NSA briefing document says the operational plan at the 2010 summit included “providing support to policymakers.”
The Toronto summit was chock full of major economic issues following the 2008 recession. Measures like the eventually-nixed global bank tax were strongly opposed by the US and Canadian governments. Further banking reform, international development, countering trade protectionism and other issues were on the docket – and on NSA’s list of main agenda items in the aim of supporting “US policy goals.”
The partnerships by some Western spying arms at the Toronto and London summits, not to mention other stories that have come out based on the Snowden documents, call attention once again to the “Five Eyes” surveillance coalition among Australia, Canada, New Zealand, the UK and the US.
Can Right and Left Rally Against Walmart?
By Ralph Nader | November 28, 2013
One of the most profitable corporations in America is having a holiday food drive. Sounds good — it’s the least Corporate America can do for those struggling to make ends meet while big companies rake in record profits and give so little back. But wait… there’s a catch. The food drive is for the company’s own underpaid, poverty-stricken workers. You really can’t make this stuff up.
Last week, it was reported that a Walmart store in Canton, Ohio is asking for food donations for its own employees. Photos of the food donation bins circulated online showing signs that read: “Please donate food items here so associates in need can enjoy Thanksgiving dinner.” (That’s if they even have a chance to — Walmart stores are open on Thanksgiving and are beginning their “Black Friday” deals at 6 p.m. on Thanksgiving Day to get a jump on the holiday shopping madness.)
Walmart is America’s largest employer with a workforce consisting of 1.3 million “associates.” The company made nearly $17 billion in profit last year. So why can’t Walmart afford to pay its own store workers enough for them to enjoy a holiday meal with their families? The answer is Walmart doesn’t really care about its workers.
If the Walmart food donation drive doesn’t get you properly steamed, then consider that Walmart CEO, Mike Duke, makes approximately $11,000 an hour — he took home about $20.7 million last year, plus ample benefits. Still not mad? It has also recently been reported that Duke has a retirement package worth more than $113 million! That is 6,200 times larger than the average 401k savings of a non-executive level Walmart employee! (Check out this recent report which charts other massive CEO pensions in relation to those of average workers)
One final fact to really get your dander up — The Walton family, heirs to the Walmart fortune, have accumulated more financial wealth than the entire bottom 40 percent of the population of the United States or 313 million Americans. That’s six Waltons worth a combined $102.7 billion!
No matter what one’s political leanings may be, the problem of massive income inequality and insatiable corporate greed is worsening year-by-year as CEO salaries rise, overall corporate profits soar and worker salaries stagnate. Liberal or conservative–all Americans should be outraged by this trend.
I recently wrote to conservative anti-tax advocate Grover Norquist to bring both sides of the political spectrum together on this troubling issue. In the past, Mr. Norquist and I have backed popular, reasonable policies, such as putting the full text of government contracts online, rolling back corporate welfare and opposing the civil liberties restrictive Patriot Act. As someone who claims to care about taxpayer protection, the issue of poverty-level wages and their major effect on taxpayers should be an important issue for Mr. Norquist.
Here’s why — low wages at the 10 largest fast food chains cost taxpayers $3.8 billion per year. Fifty-two percent of families of fast food workers have to rely on government assistance. McDonald’s’ “McResource” help line goes so far as to advise workers who cannot make ends meet from their poverty-level wages to sign up for government food stamps and home heating assistance. Is it fair that taxpayers have to shell out $1.2 billion a year to subsidize McDonald’s paying its workers while the fast food giant rakes in $5.5 billion in profit?
Walmart is even worse — according to a study from the Democratic staff of the House Committee on Education and the Workforce study, a single Walmart Supercenter store in Wisconsin can cost taxpayers upwards of $1.75 million in public assistance programs. If taxpayers have to cover over $1 million for just one 300-employee superstore, consider how much Walmart is costing taxpayers each year at their 4,135 stores in the United States. According to the 2012 “Walmart Associate Benefits Book”, which is distributed to employees, the company also advises its workers about getting on public assistance. Is this a fair or reasonable burden on taxpayers as Walmart reports $17 billion in profits?
Over the past five years, Walmart has had enough excess funds to buy back billions in its own stock. Walmart reportedly spent $7.6 billion last year buying back its shares. These funds are enough to raise the salaries of the lowest paid workers by $5.83 an hour. Catherine Ruetschlin, policy analyst at Demos, stated in a recent release: “These share repurchases benefit an increasingly narrow group of people, including the six Walton family heirs. But buybacks do not improve the fundamentals of the firm. If the funds were used to raise the pay of Walmart’s 825,000 low paid workers, it would not harm the retailer’s competitive ability and would add no cost to the consumer.”
(See the recent report from Demos titled: “A Higher Wage is Possible”)
The quickest way to lessen reliance on food stamp, EITC and Medicaid outlays is to raise the federal minimum wage. Raising the wage has the backing of 80 percent of Americans, 69 percent of Republicans, and even writers from The National Review and The American Conservative magazines. So why isn’t there more rage from the other end of the political spectrum? Even Rick Santorum and Mitt Romney supported raising the minimum wage to keep up with inflation — at least until Mitt Romney flip-flopped on the issue during the 2012 election.
The support of Grover Norquist and the Congressional followers of his no-tax pledge would be a significant boost for 30 million struggling workers who make less today than workers made in 1968, inflation adjusted. With a doubling in both worker productivity and the cost of living, there is no excuse for such a decline in their livelihoods.
Mr. Norquist, join this fight to protect taxpayers. Underpaid workers (who are also taxpayers) and their families need your support.
Probing US intentions in nuclear agreement with Iran
By Kaveh Afrasiabi | Press TV | November 27, 2013
Last Saturday, the ink on the historic “interim agreement” signed in Geneva had not dried yet when the early signs of trouble with the deal and its roadmap for a comprehensive final agreement emerged in the form of US Secretary of State’s explicit denial that the deal had recognized Iran’s right to enrich uranium.
Since then, John Kerry has repeated this claim, flatly contradicted by his Iranian counterpart, Mohammad Javad Zarif, on a half dozen occasions, thus raising questions regarding US’s sincerity.
Not only that, within hours of the late night breakthrough in Geneva, the White House published a “fact sheet” about the content of the agreement, which has now been contested by Iran’s Foreign Ministry as inaccurate, misleading and “one-sided interpretation.” As expected, there is absolutely no reference in this “fact-sheet” to Iran’s nuclear rights, including the right to enrich uranium, an important step in manufacturing fuel for the country’s reactors, which is enshrined in the articles of Non-Proliferation Treaty (NPT).
Indeed, one of the main problems with the US’s approach toward the Iran nuclear issue is, and always has been, its complete obliviousness toward and lack of respect for Iran’s inalienable nuclear rights, which are the centerpieces of Iran’s negotiation strategy.
Little wonder, then, that US President Barack Obama in his post-Geneva outreach to the Israeli Prime Minister Benjamin Netanyahu has reportedly emphasized the “shared goals” vis-à-vis Iran’s nuclear program, namely, the dismantling of Iran’s “nuclear weapons capability” that stems from its uranium enrichment program.
Israel has now dispatched a technical team to Washington to coordinate the US’s effort with respect to the final status agreement with Iran. This will probably mean even less of a “tactical difference” between US and Israel in the coming months with respect to Iran.
There is now even a shared US and Israeli linguistic (and policy) emphasis on “dismantling” the Iranian nuclear program. The word “dismantle” has seeped in the public statements of John Kerry, in contrast to his earlier hints at respecting Iran’s right to enrich uranium, e.g. in Financial Times in 2009.
Case in point, in his interview with ABC network on November 24th, Kerry stated, “While we are negotiating for the dismantling, they will not grow their program.” This echoed Kerry’s earlier admission, on November 10, 2013, that the US “is aiming to get Tehran to halt further nuclear development as a first step toward a complete dismantling of the program.”
By all indications, the US is pursuing this objective through a phased “roll back strategy,” whereby the Iranian nuclear energy program would be targeted for a gradual dismantling, in light of the statement by Tony Blinken, the US Deputy National Security Adviser, that “if we could have gotten an entire freeze of their program right away in one fell swoop, we would have done that.” This recalls Kerry’s other interview, with CBS’s Face the Nation on November 24, when he responded to the question of whether the agreement calls for the dismantling of some of Iran’s programs by saying “Not yet. That’s correct. Not yet. But you don’t get everything at first step. You have to go down the process here.”
The interim agreement is thus viewed by the US as a milestone in achieving the initial objectives of this “roll-back” strategy – by destroying Iran’s 20-percent enriched uranium, halting the completion of Arak heavy water reactor and the installation of new centrifuges, freezing the number of centrifuges and imposing a low-ceiling on enrichment – according to Kerry “3.5 percent,” even though the agreement specifically says 5 percent, and subjecting Iran’s program to unprecedented intrusive inspection, including “a number of facilities we have never been in before,” to paraphrase Kerry.
Since collecting information on Iran’s nuclear energy program is a must for the “roll-back” strategy, the US hopes that the implementation of the interim agreement will prove vital, given the American persistence on keeping the “military option on the table.” Equally important is “reversing key aspects of the Iranian program” via this deal, which Kerry has been fond of repeating since co-signing the deal in Geneva.
As for the agreement’s concluding statements that refer to Iran’s enrichment program in a final agreement, Kerry has put the emphasis on the sentence that subjects this to “mutual agreement.” In other words, Iran’s NPT right is now threatened with a contractual atrophy that subjects this right to the prerogatives of a select few governments and thus shrinks and compromises it.
The full text of that important paragraph is as follows: “Involve a mutually defined enrichment program with mutually agreed parameters consistent with practical needs, with agreed limits on scope and level of enrichment activities, capacity, where it is carried out, and stocks of enriched uranium, for a period to be agreed upon.”
In addition, Kerry has repeatedly turned attention to the agreement’s reference to the UN sanctions resolutions on Iran, which call for the suspension of Iran’s enrichment and reprocessing activities. In other words, as far as the US is concerned, the inclusion of the passage on UN resolutions is yet another stab at Iran’s defense of its right to enrich.
Notwithstanding the above-said, there is very little doubt that the US’s intention of the “first step” interim agreement is to downgrade the Iranian nuclear energy program and move steadily along the path of complete dismantling and dispossession of Iran’s nuclear fuel cycle.
Another point: the agreement places some of Iran’s centrifuges in standby, i.e. spinning without enriching, which can be hazardous to the equipment after a while, causing equipment decay and failure. Both the standby and shut down options have clear consequences for the physical condition of the centrifuges, which is why it is important not to extend this agreement beyond the six months. On this account alone, the US will likely drag its feet on a final deal, hoping that Iranian centrifuge program will increasingly suffer as a result of a lengthy state of ‘limbo.’
Consequently, it is important from Iran’s vantage to correctly tabulate what a “win” for the other side entails, and whether or not the “win-win” is balanced and evenly distributed, rather than triggering a process whereby the other side’s “win” would accumulate over time at Iran’s expense. In that case, it would simply culminate in a “lose-win,” to the detriment of Iran’s interests.
Of course, this is not even to mention the “psychological warfare” behind the White House “fact-sheets” hoopla about allowing the release of measly 4.2 billion of Iran’s oil proceeds in the next six months, while keeping the rest in an escrow. Clearly, the US’s intention is to weaken not only Iran’s resolve but also the spirit of resistance and national dignity, as part and parcel of its nuclear “roll-back.”
Yet, despite all the US’s clever “smart power” maneuvers mentioned above, what is rather remarkable about Iran’s counter-strategy, based on deft, skillful negotiation strategy, is how those maneuvers are neutralized and a broader anti-sanctions, pro-Iran momentum has been generated that is bound to grow stronger and introduce greater fissures between US and its Western partners, who happen to have greater vested economic interests with Iran. And this is precisely why Iran’s “win” in this stage of the nuclear game is irrefutable.
How NSA Mass Surveillance is Hurting the US Economy
By Trevor Timm | EFF | November 25, 2013
Privacy may not be the only casualty of the National Security Agency’s massive surveillance program. Major sectors of the US economy are reporting financial damage as the recent revelations shake consumer confidence and US trade partners distance themselves from companies that may have been compromised by the NSA or, worse, are secretly collaborating with the spy agency. Members of Congress, especially those who champion America’s competitiveness in the global marketplace, should take note and rein in the NSA now if they want to stem the damage.
The Wall Street Journal recently reported that AT&T’s desired acquisition of the European company Vodafone is in danger due to the company’s well-documented involvement in the NSA’s data-collection programs. European officials said the telecommunications giant would face “intense scrutiny” in its bid to purchase a major cell phone carrier. The Journal went on to say:
“Resistance to such a deal, voiced by officials in interviews across Europe, suggests the impact of the NSA affair could extend beyond the diplomatic sphere and damage US economic interests in key markets.”
In September, analysts at Cisco Systems reported that the fallout “reached another level,” when the National Institute of Standards and Technology (NIST) told companies not to use cryptographic standards that may have been undermined by the NSA’s BULLRUN program. The Cisco analysts said that if cryptography was compromised “it would be a critical blow to trust required across the Internet and the security community.”
This forecast was proven true in mid-November, when Cisco reported a 12 percent slump in its sales in the developing world due to the NSA revelations. As the Financial Times reported, new orders fell by 25 percent in Brazil and 30 percent in Russia and Cisco predicts its overall sales could drop by as much 10 percent this quarter. Cisco executives were quoted saying the NSA’s activities have created “a level of uncertainty or concern” that will have a deleterious impact on a wide-range of tech companies.
It is hard for civil libertarians to shed tears over AT&T losing business because of NSA spying, considering the company allowed the NSA to directly tap into its fiber optic cables to copy vast amounts of innocent Americans’ Internet traffic. AT&T was also recently revealed as having partnered with both the DEA and the CIA on separate mass surveillance programs. It is also hard to feel sorry for Cisco, which stands accused of helping China spy on dissidents and religious minorities. But the fact that the spying is hurting these major companies is indicative of the size of the problem.
This summer, European Parliament’s civil liberties committee was presented with a proposal to require every American website to place surveillance notices to EU citizens in order to force the US government to reverse course:
“The users should be made aware that the data may be subject to surveillance (under FISA 702) by the US government for any purpose which furthers US foreign policy. A consent requirement will raise EU citizen awareness and favour growth of services solely within EU jurisdiction. This will thus have economic impact on US business and increase pressure on the US government to reach a settlement.” [emphasis ours]
Meanwhile, Telenor, Norway’s largest telecom provider has reportedly halted its plans to move its customers to a US-based cloud provider. Brazil seems to be moving ahead to create its own email service and require US companies locate an office there if they wish to do business with Brazilian customers.
Laws like this mean that companies like Google “could be barred from doing business in one of the world’s most significant markets,” according to Google’s director for law enforcement and information security at Google, Richard Selgado. Google has been warning of this as far back as July, when in FISA court documents it argued that the continued secrecy surrounding government surveillance demands would harm its business.
Many commentators have been warning about the economic ramifications for months. Princeton technologist Ed Felten, who previously at the Federal Trade Commission, best explained why the NSA revelations could end up hurting US businesses:
“This is going to put US companies at a competitive disadvantage, because people will believe that U.S. companies lack the ability to protect their customers—and people will suspect that U.S. companies may feel compelled to lie to their customers about security.”
The fallout may worsen. One study released shortly after the first Edward Snowden leaks said the economy would lose $22 to $35 billion in the next three years. Another study by Forrester said the $35 billion estimate was too low and pegged the real loss figure around $180 billion for the US tech industry by 2016.
Much of the economic problem stems for the US government’s view that it’s open season when it comes to spying on non-U.S. persons. As Mark Zuckerberg said in September, the government’s position is“don’t worry, we’re not spying on any Americans. Wonderful, that’s really helpful for companies trying to work with people around the world.” Google’s Chief Legal Officer David Drummond echoed this sentiment last week, saying:
“The justification has been couched as ‘Don’t worry. We’re only snooping on foreigners.’ For a company like ours, where most of our business and most of our users are non-American, that’s not very helpful.”
Members of Congress who care about the US economy should take note: the companies losing their competitive edge due to NSA surveillance are mainstream economic drivers. Just as their constituents are paying attention, so are the customers who vote with their dollars. As Sen. Ron Wyden remarked last month, “If a foreign enemy was doing this much damage to the economy, people would be in the streets with pitchforks.”
Ukraine Rejects The Brussels Club, Opts For Trade Over Empty Promises
By Daniel McAdams | Ron Paul Institute | November 22, 2013
On Thursday the Ukrainian parliament reject a final set of laws designed to pave the way for Ukraine to join the EU’s “Eastern Partnership” program as an associate EU member. The surprise move cast a shadow on the Eastern Partnership signing ceremony scheduled to take place in Vilnius, Lithuania next week.
With this move, Ukraine has signaled an end to its interest in further formal association with the European Union and a preference for participation in the Customs Union of Belarus, Kazakhstan and Russia.
Perhaps sensing that a relationship with the EU would also involve endless meddling in internal Ukrainian affairs, the last straw for the Ukrainian parliament was a package of Brussels-demanded legislation which would have released from custody former prime minister Yulia “Gas Princess” Timoshenko, serving time on corruption charges.
The Western media marches nearly in lock-step condemning Russia’s role in “bullying” Ukraine into stepping away from the EU agreement. The Western media’s near-universal claim is that Ukraine is missing out on the deal of a century. But as usual there is far more to the story.
As European asset manager Eric Kraus points out, Ukraine opted for a reliable trading partner next door rather than an EU that is neither interested in importing Ukrainian products nor has the financial means to provide support for modernization of Ukraine’s economy. So despite deceptive and biased Western reporting, Ukraine has settled on guaranteed trade rather than empty suggestions of possible aid.
Western media and governments cannot understand why Ukraine would not drop everything to join the Western club, the EU, but as Kraus explains in the above-linked interview:
The EU offers lots of words…what they don’t offer is what Ukraine needs, which is money…. Ukraine is not vital to the EU. It is part of a geopolitical chess game and they’d like to take that piece. But they are not going to spend a lot of money for it. They can’t. They’ve got Portugal, they’ve got Greece, pretty soon they’ve got France.
As a recent RPI report pointed out in detail, Westernized politicians from the former East like Poland’s Radek Sikorski pretend that their countries have benefited from EU membership when in fact it is predominantly the elites in these countries — often with nomenklatura ties — who have done particularly well for themselves while their countries’ economies have disintegrated. Sikorski’s Poland, for example, “enjoys” a 30 percent youth unemployment rate and a population whose only hope for the future is emigration to the UK.
As RPI contributor Christine Stone points out in the above recent report:
Cheap labour and cut-price prostitution will be Ukraine’s major exports if the Polish or Baltic model of European integration is anything to go by. Poland’s main ‘export’ is cash remittances from almost three million migrants scattered across the western EU, especially in Britain. Maybe Foreign Minister Sikorski hopes that Ukraine will replace Poland as the mega-El Salvador of Europe if it accedes to a visa-free association with the EU?
With Ukraine out of the EU’s “Eastern Partnership” program, the association includes just Georgia and Moldova, both economic basket-cases that make even Ukraine look like Switzerland. Good luck with that, Brussels.
Related articles
- Backtracking? Ukraine PM Says Could Sign EU Accord In 2014 (eurasiareview.com)
- EU and Ukraine: What went wrong? (euobserver.com)
- RT: Ukraine refused to ‘sign a suicide note’, sending the EU’s ‘geopolitical project’ onto the rocks (jhaines6.wordpress.com)
Oil prices drop after Iran’s nuclear deal
MEMO | November 25, 2013
Oil prices dropped on Monday morning in Asia’s exchange markets after Iran and world powers reached an agreement over Tehran’s nuclear programme. Iran holds the fourth largest oil reserves in the world. Brent price fell by 2.26 per cent, or $2.51 down to $108.54 per barrel, while US light sweet crude fell by 89 cents to $93.95 per barrel (a less than one per cent decline).
After five days of intense negotiations, the major world powers and Iran announced a deal on Saturday evening stipulating that Iran will curb its nuclear activities in return for an easing of the economic sanctions against it. The interim deal paves the way for a new phase of negotiations in six months’ time. Western countries and Israel suspect Tehran of secretly developing nuclear military capabilities behind its civilian programme, but this is a claim that Tehran denies.
The oil markets had been intensely following the negotiations in Geneva. Economic analysts believe the deal could eventually lead to lifting the ban on Iran’s oil exports, which would supply the markets with a million additional barrels a day and help to reduce oil prices, which have dramatically risen as a result of the Iranian crisis and the geopolitical unrest in the Middle East.
Victor Shum, the managing director of IHS Purvin & Gertz Group in Singapore, observed on Monday that: “the impact of the deal on the global oil supply will be limited in the short term because the majority of the sanctions remain.”
Experts also confirmed that if sanctions are indeed lifted, then Iranian exports will increase while Saudi exports will decrease. Both Iran and Saudi Arabia are members of the Organisation of Petroleum Exporting Countries (OPEC).
An oil expert told the Dow Jones newswire that the agreement “does not mean that we will see an influx of oil exports in the markets, because Iran is a member of OPEC and any increase in the Iranian oil supply should be done within the quota system.”
The fallacy of corporate taxes in a neo-liberal context
By Michael Laxer | Rabble | November 23, 2013
“Make the corporations pay!”
It is a slogan that sounds good, and with which I would fully agree, under conditions where “corporations,” or, more accurately, those who control them, were actually paying. But this is not the case in the debate in Canada today where many on the left are falsely proclaiming corporate taxes as an alternative to increasing personal taxes, even on the wealthy, and seem to display little understanding that corporate tax rates have nothing at all to do with inequality socially and are not at all a tax on wealth or the wealthy.
When Thomas Mulcair juxtaposes his “plan” to increase corporate taxes as a “progressive” alternative to Toronto-Centre candidate Linda McQuaig’s previously stated notion that taxes should be increased as well on Canada’s wealthiest individuals, he is fundamentally juxtaposing McQuaig’s plan that might accomplish something to a plan that will accomplish absolutely nothing.
The essential fallacy of mythologizing corporate taxes in the present context lies in the fact that, unless you agree with the U.S. Supreme Court, corporations are not people. By definition, if government taxes a corporation, ultimately some individuals, somewhere, pay the bill. Corporations cannot pay anything, any more than a house you own pays its own property tax. Given that corporations can, will and must extract the money to pay their tax bills any number of ways, from increasing prices, to attempting to force down worker wages and benefits, to finding creative ways to reduce nominal profit (which includes actually increasing CEO salaries or privileges, which are a “cost”), in the absence of a campaign to dramatically increase personal taxes on the managerial and CEO class of corporations or to re-adjust social power relations through the threat of socialization of assets and/or price controls, the net effect of corporate taxes, in terms of income levelling, will often be either zero or regressive.
It sounds radical, and is therefore appealing to centrists who wish to nominally appear radical, but its impact on inequality is essentially non-existent for the very simple reason that inequality is driven by disparities in the incomes that exist between individuals. Inequality is facilitated by corporations and corporate actions, but it is manifested in the difference between people and people alone.
This exact inequality exists within corporations themselves. Corporations are comprised, as a general rule, of workers, managers and upper management. Given the nature of the capitalist economy, the way corporations will seek to lessen the impact of higher taxation will not be at the expense of their CEOs.
It is not corporations who own multiple mansions, live lavish lifestyles or indulge in tremendous decadence, it is wealthy people who do so. The disparity between rich and poor is not between rich and poor companies, but rather between rich people and those living working-class lifestyles or those actually living in poverty.
Taxes on corporations, in isolation, separated from higher tax rates on the wealthy individuals who own, profit from and run the corporations, act as little more than waypoints to collecting taxes on corporate workers or customers.
“Progressive” politicians, New Democrats, Liberals and Democrats alike, like the corporate tax narrative when it suits them precisely because it does not threaten any actual people at all, whether it is Galen Weston or one of his Loblaws cashiers. They can claim to be holding the banner of redistributive justice high. To be defending the mythical “99 percent.”
Yet these taxes can only have an impact on inequality if you assume, barring personal tax increases, that corporations will pass the “costs” of higher taxes along, out of a sense of social justice, to their corporate boardrooms. This is, frankly, a counterintuitive and bizarre assumption for leftists to make.
They will not. They will, as they always do, make their workers pay.
We need to move beyond the false narrative of so-called “corporate taxes” as a solution under capitalism and, instead, to advocate for both a dramatic increase in personal taxes on the wealthy and the upper middle class with a corresponding fight to socialize corporate assets. We need to tie this to an entrenchment of union and workers’ rights and democratization of the economy.
It is time to actually make those who benefit from the corporations pay. By higher taxes on capital gains, by higher income taxes on the wealthy and managerial class, by inheritance taxes, by expanding the legal rights and powers of workers.
By advancing expropriation and radically new ownership models.
Until then, when it comes to understanding how to tackle income inequality and its consequences, it is the pre-by-election Linda McQuaig who was right and it is the desperate-for-power NDP leader Thomas Mulcair who is wrong.
Egypt’s coup leaders call for end to subsidies on basic goods
MEMO | November 23, 2013
In a new leaked audio tape, the Egyptian coup leader Gen. Abdul-Fattah al-Sisi has called for an end to subsidies on bread and energy in Egypt, as well as a 50 per cent reduction of public sector salaries.
Gen. Al-Sisi described the measure as “austerity” and pointed to examples in various countries expressing his admiration for them.
In the audio which was broadcast by Al-Jazeera Mubashir Misr on Friday 22 November, he said: “A gas container is sold to citizens for 62 to 67 Egyptian pounds, (restaurants pay much more). This means that a lot of money is being unintentionally wasted in the country.”
He said: “It is impossible to pay 107 billion Egyptian pounds to subsidise energy and 17 billion for bread.”
Al-Sisi continued: “What I would like to say, regardless if it is appropriate to raise prices or not is that when former President Sadat attempted to solve Egypt’s problems in 1977, he decided that every citizen had to pay the prime costs for the goods they bought.”
Citing other examples, Gen Al Sisi said: “I would like to tell you that Germany reduced 50 per cent of the salaries for its austerity plan, and people accepted that measure.” However, he did not give any details about when and how Germany carried out this measure.
He further pointed to the cases of South Africa and Sudan. In the latter case he said, “When South Sudan seceded from the north and became independent, it cut salaries by 50 per cent. People said nothing.”
Then he concluded: “I do not care about the decisions. I would like to say that the situation requires from all of us, Egyptians, if we love our country, to take measures regarding the issue of the prices and goods’ subsidies.”
Related article
- In interview, Egypt army chief Sisi toys with idea of presidential candidacy (uprootedpalestinians.wordpress.com)
Obamacare is Doomed by Its Internal Logic
A Black Agenda Radio commentary by Glen Ford | November 20, 2013
Obamacare is unraveling, not because the administration is particularly incompetent or unlucky, and certainly not as a result of the Republicans’ unrelenting hostility to the Obama health insurance plan. Indeed, ever since the bill’s passage in early 2010, the GOP’s holy war against Obamacare has served to solidify reflexive Democratic support for what has always been a Republican-inspired bill.
The truth is, the Affordable Health Care Act is coming undone because of its own, tortured internal logic. At root, it is a fraud on the public: a scheme to subsidize and more deeply embed a private insurance system that can only make profits by denying sick and vulnerable people health care, and playing different demographics of Americans against each other. As every other industrialized country in the world has already learned, it is impossible to build a genuine, universal healthcare system on a cut-throat capitalist foundation. Private insurers make money by betting against the health interests of their customers. Obama served his corporate masters by conspiring to make tens of millions more Americans into customers of private insurers. He tried to dress up one of the greatest corporate subsidies in history as if it were a solemn national mission, a rebirth of the social compact between the American people. But of course, Obamacare is no such thing; it is a racket to prop up private insurers with public money, while allowing the profiteers to continue to run the show.
You can’t hide a truth that big. The Obamacare website has suffered from terminal complexity because white collar crime is usually quite complex. The web site attempts to reconcile the profit margins and various products of a universe of private insurance corporations, while at the same time pretending to serve the health needs of the people at an affordable cost. Obamacare claims to be in the business of serving both the public and corporate stockholders. But that’s mission impossible. If Obamacare is based on making profits for private corporations – if that is what keeps the system going – then the public’s health care needs will always be an afterthought. And, that will be obvious in the way that the website is organized as a sales platform that matches federal subsidies with corporate products, rather than matching people with the medical resources they need to survive and thrive.
Website complexity and failures aside, Obamacare can never become part of a national social compact, something of which all Americans can be proud. That’s because, by definition, corporate insurance schemes divide people into “winners” and “losers” – although, of course, the big winner is always the corporation. Young, healthy people know they are the fatted calves of the insurance business, and they are avoiding Obamacare like the plague. If this were really a national health care program, like Medicare for All, then most young people would join in the national health care mission. But this is just Obama working a scam for the insurance companies, and young folks know it. Anybody who manages to get access to the web site knows it.
The fatal flaw in Obamacare can’t be fixed. The best thing that could happen would be a quick and total collapse. Large majorities of Americans still support Medicare for All, but Obamacare stands in the way of a real national health plan – just as the Republican right-wingers that invented Obamacare back in 1989 intended.
Glen Ford can be contacted at Glen.Ford@BlackAgendaReport.com.
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The Crusades – colliding narratives
Ashes of Pompeii | June 13, 2026
They say history is written by the victors, but the Crusades offer an interesting historical contrast: a two-century collision that produced not one history, but two parallel, irreconcilable realities. The dates and the battles are identical in both accounts, but the moral axis is entirely flipped.
In the traditional Western narrative, the Crusades are framed as a heroic, if tragic, epic. The First Crusade is a pious pilgrimage; the knights are romanticized figures of chivalry in shining armor, bravely holding the line in a hostile, exotic land. The eventual loss of the Holy Land is mourned as the “fall of Outremer,” a tragic retreat of European civilization. In this telling, the East is often reduced to a passive backdrop, its inhabitants viewed through a lens of mystique or backwardness, mere obstacles to a divine mandate.
But cross the Mediterranean, and the exact same timeline reads like a chronicle of foreign invasion and eventual, hard-won restoration against the barbarous northerners. The dates do not change, but the adjectives do. Here is the history as it is remembered in the Levant… continue
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