That’s the conclusion of single payer advocate Dr. Quentin Young, national coordinator for Physicians for a National Health Program (PNHP), in his just released autobiography – Everybody In, Nobody Out: Memoirs of a Rebel Without a Pause.
“Had I been in Congress, I would have unequivocally voted against Obamacare,” Young writes. “It’s a bad bill. Whether it’s worse than what we have now could be argued. We rather think because of its ability to enshrine and solidify the corporate domination of the health system, it’s worse than what we have now. But whether it is somewhat better or a lot worse is immaterial. The health system isn’t working in this country — fiscally, medically, socially, morally.”
Young rejects the idea that President Obama should have compromised on single payer in the face of industry opposition.
“I don’t have any sympathy for the idea that the president had to compromise because his opposition was strong,” Young writes. “Winning is not always winning the election. Winning is making a huge fight and then taking the fight to the people — re-electing people who are supporting your program and defeating those who aren’t.”
Young first met the young Barack Obama in the mid-1990s at social gatherings.
At the time, Obama was lecturing at the University of Chicago Law School and practicing law.
“We did not become bosom buddies after a few of these social gatherings — I just viewed him as a nice, bright guy living in the neighborhood,” Young says.
When Obama ran for the Illinois Senate, Young supported him.
“I was happy with his views on health care,” Young writes. “He recognized that major reform was necessary and indicated support for a single-payer approach. No blushing friend, I took every opportunity to solidify his position. While not an official adviser, I tried to influence him as much as I could. My colleagues and I sent him notes touting the advantages of single-payer and the form it might take and talked with him and his staff about it whenever I had the chance.”
“I felt I did influence him,” Young said.
When Obama ran for the Senate in 2003, Obama told the Illinois AFL-CIO:
“I happen to be a proponent of a single payer universal health care program. I see no reason why the United States of America, the wealthiest country in the history of the world, spending 14 percent of its Gross National Product on health care cannot provide basic health insurance to everybody. And that’s what Jim is talking about when he says everybody in, nobody out. A single payer health care plan, a universal health care plan. And that’s what I’d like to see. But as all of you know, we may not get there immediately. Because first we have to take back the White House, we have to take back the Senate, and we have to take back the House.”
But just a year later, Obama had flipped and came out against single payer in Illinois.
“I was very disappointed by his move to the right to keep the insurance companies in command,” Young told the Springfield State Journal Register in 2004. “I’m not accusing him of lying or misconduct. I’m accusing him of a lack of courage.”
But despite Obama’s “lack of courage,” Young supported Obama in his run for U.S. Senate and later for president. Young was just setting himself up for more disappointment.
At a town hall meeting in Portsmouth, New Hampshire in August 2009, Obama was asked whether he supported a universal health care plan.
“First of all, I want to make a distinction between a universal plan versus a single-payer plan, because those are two different things,” Obama said.
“A single-payer plan would be a plan like Medicare for all, or the kind of plan that they have in Canada, where basically government is the only person — is the only entity that pays for all health care. Everybody has a government-paid-for plan, even though in, depending on which country, the doctors are still private or the hospitals might still be private. In some countries, the doctors work for the government and the hospitals are owned by the government. But the point is, is that government pays for everything, like Medicare for all. That is a single-payer plan.”
“I have not said that I was a single-payer supporter because, frankly, we historically have had a employer-based system in this country with private insurers, and for us to transition to a system like that I believe would be too disruptive. So what would end up happening would be, a lot of people who currently have employer-based health care would suddenly find themselves dropped, and they would have to go into an entirely new system that had not been fully set up yet. And I would be concerned about the potential destructiveness of that kind of transition.”
“All right? So I’m not promoting a single-payer plan,” Obama said.
In March 2010, Congress passed the Affordable Care Act — Obamacare — by a narrow margin.
“PNHP’s policy experts did a line-by-line examination of the bill and, while acknowledging that it contains some modest benefits that make changes around the edges of our existing system, basically gave it two thumbs down,” Young writes. “To this day, much to the chagrin of many of our friends who wanted reform, I remain adamant in my rejection of Obamacare.”
“Why? We want a system that excludes the private insurance companies,” Young writes. “ We demand such exclusion not because these companies are good or evil (although we think they’re pretty evil). Rather, the reason to exclude them is that they don’t address the needs of the American people.”
Young also rejects the idea of a “public option,” pushed by Democrats such as Howard Dean. A public option “would not have made any significant difference on the overall impact” of Obamacare “contrary to the view of many progressive who believed that it would,” Young says.
“Since WWII, we have learned a lot about disease and certainly have had dramatic improvements in what we can do,” Young writes. “I’m talking about surgery of the heart, vaccination, nutrition issues. All these things have been largely defined in the last half-century. We’ve had something approaching a 12-year life expectancy rise just from scientific intervention.”
“We have all this knowledge, all these options, but we have a very backward financing and delivery system and the result is a great deal of human suffering,” Young says. “And that’s why we remain opposed to the Affordable Care Act. We think we have a winning proposition despite the reality in Congress. Polls repeatedly vindicate our position. A solid majority of the public and 59 percent of doctors support the single payer approach.”
“President Obama could have made it happen,” Young says. “He could have stuck to all the virtues of single payer. And I won’t deny he may have been defeated in the first round. There’s no question that this fight has been dirty and it’s going to get dirtier.”
October 10, 2013
Posted by aletho |
Economics, Progressive Hypocrite, Timeless or most popular | Obama, Patient Protection and Affordable Care Act, Quentin Young, Single-payer health care, United States |
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On August 15, Horacio Cartes, a millionaire, businessman, and alleged drug-trafficker assumed the presidency in Paraguay, leading the Colorado Party back into power after a four-year interruption from its 61-year rule by Fernando Lugo, who was deposed last year in a “parliamentary coup.” Cartes has been investigated by the U.S. government for money laundering and drug trafficking, according to this 2010 U.S. diplomatic cable released by Wikileaks.
Since Cartes started his term eight weeks ago, several announcements have been made regarding Paraguay’s social and economic policy that are worth noting.
Militarization
Only a week after having taken office, Paraguay’s Congress –in which the Colorado Party has a majority in both houses– granted the president the power to deploy the military within the country to carry out policing activities. Despite opposition from human rights organizations who fear a return to dictatorship-era military operations, three days later Cartes ordered 400 military personnel to areas in which disputes over land tenure are ongoing. On August 28th the military entered an elementary school with demands to interview children on the whereabouts of suspected rebels and arrested several land rights activists and peasant leaders in the area.
The military powers granted to Cartes are especially alarming in a country that spent most of the 20th century either in political turmoil or under brutal dictatorship. The increased militarization of the Cartes regime is occurring in a context of growing discontent over public sector layoffs and privatization plans.
Austerity
Paraguay lacks an adequate system for collecting taxes and has a hard time financing social spending. With few mechanisms for distributing wealth and increasing what little there is of social services to the population, any gains from high economic growth rates that Paraguay has been experiencing this year and last are likely to benefit mostly the wealthy.
Seventy-seven percent of Paraguay’s land is still owned by 1 percent of the population and poverty reduction has been slower in Paraguay than in other countries in the region. The UN’s Economic Commission for Latin America and the Caribbean and Paraguayan government’s estimates for poverty in 2011 and 2012 have differed, with figures ranging between 32-50 percent, but showing a significant reduction during Fernando Lugo’s unfinished presidency. Cartes claims that his government’s “obsession” will also be to fight poverty and increase social spending.
But a little over 10 days ago Cartes announced a massive layoff of 4,000 government workers. This week he announced that another 15,000 layoffs are expected by December. Cartes says that the government lacks the funds necessary to pay the salaries of all 258,000 government employees. Despite accusations from at least one opposition senator who insists that layoffs are being used to strengthen the power of the Colorado Party, the Cartes government maintains that there is no persecution involved in the layoffs, and that it is implementing a system based on meritocracy. Additionally, according to this Associated Press interview with Treasury Minister Germán Rojas, public workers’ salaries will cease to be adjusted to keep up with inflation.
Privatization
Cartes’ government has used the argument of budget shortfalls to defend a move toward privatization. A bill introduced in mid-September and currently waiting for approval from congress would open Paraguay up to the privatization of infrastructure services in the transport, electric and sanitation sectors, including the dredging of the Paraguay River; construction of, and tolls for, roads, railroad and electric services. Cartes has framed his bill as a “public-private alliance,” but five of the largest unions in the country and the center-left opposition Frente Guasú insist on the “privatizing” nature of the bill, also criticizing it for granting the executive complete decision-making power over concessions, and the guarantee that losses will be covered by the state, not the company. The first three days of October have been met with protests and roadblocks throughout the country in response to mounting anxieties over privatization and one-time cuts to teacher’s salaries following their month-long strike.
—
The last eight weeks in Paraguay have stirred up controversies, anxieties and memories of an unpleasant past. While it is impossible to know what the outcomes of Cartes’ policies will be, militarization, massive layoffs, and privatization have often been followed by increased inequality, greater poverty, and major discontent among the populace in other countries where governments have pursued a similar path. It is these types of neoliberal policies that coincided with a collapse in economic growth throughout Latin America in the 1980s and 1990s, and it is the rejection of these policies that has led to the repeated election of center-left governments in much of Latin America since the end of the ‘90s, (including Paraguay’s own recently-ousted president Fernando Lugo) that gives us some notion about what could be in store for Paraguay’s future.
October 10, 2013
Posted by aletho |
Civil Liberties, Corruption, Economics, Militarism, Timeless or most popular | Colorado Party, Horacio Cartes, Human rights, Latin America, Paraguay |
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Brazilian lawmakers indicated that, in lieu of direct teleconferences with Edward Snowden to gain further insight into allegations of NSA spying in their country, they may seek to seize documents now held by American journalist Glenn Greenwald.
On Wednesday Greenwald spoke to Brazilian senators currently investigating evidence of US as well as British and Canadian espionage in the Latin American country.
The legislators are part of a probe into potential foreign surveillance — the Comissão Parlamentar de Inquérito, or CPI — called into action by President Dilma Rousseff in the wake of initial news reports alleging that even the president’s online communication had been intercepted.
Greenwald, who appeared along with his partner David Miranda, a Brazilian national, broached several topics during the hearing, including the possibility of granting asylum to NSA contractor turned whistleblower Edward Snowden.
So far, Brazil has been vague as to whether it would seriously consider extending Snowden, who is currently residing in Russia, an offer of political asylum.
“There are many nations saying, ‘We’re glad to be learning all this information,’ but almost nobody wants to protect the person responsible for letting the world discover it,” Greenwald told the panel.
In the meantime, Brazilian legislators seem eager to find out the extent of foreign surveillance on the country in greater detail.
To that end, the country’s government — specifically, the CPI inquiry — is now seeking to establish teleconferencing sessions with Snowden.
Asked by the commission to turn over documents obtained through the whistleblower Greenwald refused, citing the need for a separation between journalism and government. His partner, Miranda, also cited that divulging the documents would constitute an “act of treason” and prevent Greenwald from entering the US again.
One Brazilian Senator, Ricardo Ferraço, went so far as to suggest that the government commission seek the authority of the country’s courts to seize documents now held by Greenwald if such communication with Snowden proved unfeasible.
Unlike allegations of NSA surveillance in the US, coverage of the agency’s activities in Brazil have taken on a broader scope, and in particular centered on the country’s economy.
Greenwald himself has shaped the narrative of Snowden’s disclosures through his testimony to Brazil’s government, as well as his work with the O Globo newspaper and Rede Globo’s news television.
In August, the journalist told Brazil’s government that alleged American espionage in Brazil was centered on gaining economic advantages rather than on any national security concerns.
“We now have several denunciations that show that the spy program is not about terrorism. It is about increasing the power of the American government,” Greenwald told senators on Wednesday, speaking in Portuguese.
In the most recent report last Sunday, Greenwald said on Globo network television that Canadian spies had targeted Brazil’s Mines and Energy Ministry, intercepting the metadata of phone calls and emails passing through the ministry.
The impact of the steady stream of surveillance allegations on Brazil has been swift. Last month Petrobras announced that it would be investing $9.5 billion over the next five years to heighten its data security.
Meanwhile, Communications Minister Paulo Bernardo announced that the country’s government was pursuing legislation requiring domestic data exchanges to use locally made equipment.
October 10, 2013
Posted by aletho |
Civil Liberties, Corruption, Deception, Economics, Full Spectrum Dominance | Brazil, Dilma Rousseff, Edward Snowden, Glenn Greenwald, National Security Agency, Petrobras, Rede Globo, United States |
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If the sanctions against Iran are lifted, the Iranians will look mainly towards American firms in the oil and automobile sector to fill the gap, George Malbrunot, a journalist for French newspaper Le Figaro, told RT.
RT: Both Iran and the US are signaling a thaw in their political relations – what effect will it this have on economic ties and business? Does it look like the US is attempting to force out other companies from the Iranian market?
George Malbrunot: I think already there have been some secret contacts between US firms and Iranian counterparts in order to prepare, to anticipate the political deal between Iran and the United States. Mainly these contacts have occurred in the automobile sector. For the last year or more there have been some emissaries from General Motors, for example, going to Tehran to see their Iranian counterparts from Iran Khodro, in order to prepare the ground for the [return] of General Motors to Iran, which was very important before 1979.
So there are these kind of contacts with not only GM but other big US companies, also in the oil and gas sectors, which are very important in Iran, and it has been encouraged recently by the executive order that Barack Obama signed on June, 3, which prevents subcontractors dealing with Iranian firms in the automobile sector. And in fact this executive order was deeply targeting the French who are the only one now in the automobile sector in Iran, especially Renault, and the French contractors are very upset about that. And they interpret it as an attempt to clean the Iranian market before the return of US companies in Iran.RT: In your article, you say American companies are securing their positions on the Iranian market – how is this happening?
GM: For the last six months, we’ve heard from Iran’s supreme leader, Ayatollah Khomenei, that we are not any more opposed to direct contacts with the US. The businessmen are always more active in anticipating political deals and to anticipate change. During all these years of bad relations between Iran and the US there have always been some kind of secret contacts between US firms and Iranian firms. And mainly these contacts have been accelerated after the election of President Rouhani in Iran. And we’ve all seen at the last UN General Assembly in New York last month that now the Iranians are talking to the Americans. So there are preparations on the ground in order to go to Iran which is a huge market, 80 million consumers, with huge oil and gas resources, so it’s natural that US businessmen are watching very carefully the developments which happen between Iran and the US.
And not only US businessmen are very [eager] to go to Iran, but you have also the German businessmen, who have always been active, with Siemens for example, and even the British who have no diplomatic relations with Iran are now starting to [study] this market carefully. The Japanese are also very active. And unfortunately for us in France, we are perhaps the last in Europe to try to go to Iran, because for the last [few] years France was extremely active in fighting against Iran. France was exerting the pressure on Iran in order to implement the sanctions. So the French businessmen are very upset with what’s going on now, because for the last 20 years the US was [not in] Iran, and French businessmen had quite a good position in Iran – Total, Peugeot, Renault – and now they are afraid that all these years of efforts will be [wiped away] by the new deal which will happen between the US and Iran.
RT: Do you think we will be seeing an easing of sanctions against Iran soon?
GM: I think so, and the Iranians are a very proud nation and they have been always having very strange relations with Americans, love and hate, and once the sanctions will be lifted I’m quite sure the Iranians will look mainly toward American firms in the oil sector, in the automobile sector to fill the gap. So for sure European companies will be more probably losers in this kind of agreement.
I think that GM and even Chevrolet will go extremely quickly to Iran if there is a political agreement between the US and Iran, if the sanctions are lifted. I’m not sure that the Iranians will give a lot of pieces of the cake to French companies or others on this issue. And this is the reason why French companies are very worried about what’s going on in the shadow of this rapprochement between the US and Iran.
October 9, 2013
Posted by aletho |
Economics, Wars for Israel | France, Iran, Renault, Sanctions against Iran, United States |
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Canada, as well as the US, infiltrated and spied on the Brazilian Energy Ministry, a new leak by Edward Snowden has revealed. The leaked documents show how the data gleaned through espionage was shared with international spy network the ‘Five Eyes.’
Newly-released documents handed over to Guardian journalist Glenn Greenwald by former CIA employee Edward Snowden describe in detail how Canadian intelligence infiltrated Brazil’s Energy and Mines Ministry.
“I was overwhelmed by the power of the tools used. The Ministry of Energy and Mines was totally dissected,” security expert Paulo Pagliusi told Brazilian program Fantastico, which first reported on the leak.
The program showed documents from a meeting of the ‘Five Eyes’ spy network, comprising the US, UK, Canada, New Zealand and Australia, in June of last year. In a presentation the Communications Security Establishment Canada (CSRC) – the Canadian version of the NSA – outlined how they used a program called Olympia to break through the Brazilian ministry’s encryption.
The information gleaned from the ministry was then shared with all of the members of the ‘Five Eyes.’
“They [Five Eyes] are sharing all the information, handing over documents to let other countries know exactly what they are doing,” said Glen Greenwald.
As a result of the infiltration of the ministry over an unspecified period, the CSCE developed a detailed map of the institution’s communications. As well as monitoring email and electronic communications, the CSCE also eavesdropped on telephone conversations. Able to identify mobile numbers, SIM card registrations and the make of a phone, Olympia even snooped on former Brazilian ambassador to Canada Paulo Cordeiro.
Canada has so far refused to comment on the reports of its spy program. Brazil’s Minister of Mines and Energy Edison Lobao told Fantastico that the reports were “serious” and should be condemned.
Canada is one of the world’s leading energy producers and has significant economic interests in Brazil.
“Canada has interests in Brazil, especially in the mining sector. Does this spying serve the commercial interests of select groups? I cannot say,” observed Lobao.
‘No economic espionage’
Previously, Brazilian newspaper Globo News reported that the NSA was monitoring Brazil’s state oil giant Petrobras. Washington reacted to the allegations, stating that the US “does not engage in economic espionage.” The Obama administration has said on a number of occasions that US covert surveillance is in the interests of protecting US national security.
Brazil’s President Dilma Rousseff has condemned the reports of the NSA’s surveillance of Brazil and demanded the US account for its actions.
As a consequence, the Brazilian head of state postponed an official visit to Washington in October. Rousseff has also taken measures to tighten Brazilian internet security.
“I have sent an internet draft bill to Congress, an initiative that will protect the privacy of Brazilians,” Rousseff wrote on Twitter on Sunday. The government is expected to vote on the bill in the coming weeks.
Back in September, Rousseff slammed the US for “economic espionage,” dismissing US claims the NSA spying is a preventative measure to ensure national security. Addressing the UN General Assembly, President Rousseff stated that state-run Petrobras is “no threat to the security of any country. Rather, it represents one of the greatest assets of the world’s oil and the heritage of the Brazilian people.”
October 7, 2013
Posted by aletho |
Deception, Economics | Brazil, Canada, Dilma Rousseff, Hacking, Human rights, Information Technology, Intelligence, Internet, National Security Agency, South America, United States |
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MOSCOW – Russian state oil giant Rosneft has plans to extract oil in the next 100 years and sees no significant threat from the increase in shale gas production in the United States, CEO Igor Sechin told journalists Sunday.
“We have a 100 year work prospect,” Sechin said. “As for the shelf, we have no other alternative. In general, oil needs to be extracted,” he said adding that the US shale production is high-cost, which makes it impossible for export.
US media reports said this week the United States was expected to leapfrog Russia as the world’s largest producer of oil and natural gas this year thanks to a surge in US fuel production driven by technology that allows energy companies to tap into oil and gas in underground shale rock formations.
As US energy extraction and production have gone up, imports of natural gas and crude oil have fallen by 32 percent and 15 percent, respectively, in the last five years, the Wall Street Journal said.
Sechin said Rosneft, which has 1.5 percent of world’s explored reserves, was interested in international partnership and would adhere to high environmental standards.
He has accused the activists of the non-profit environmental organization Greenpeace, who were detained last month by Russian authorities after staging a “peaceful protest” against oil drilling in the Russian Arctic, of pursuing commercial interests.
“Look at those who pay them, who is their sponsor,” Sechin told journalists.
Rosneft currently holds 46 licenses for Russian offshore deposits worth 42 billion tons of oil equivalent. The company has signed agreements on cooperation with US oil and gas giant Exxon Mobil, Italy’s Eni and Norway’s Statoil.
October 6, 2013
Posted by aletho |
Economics, Malthusian Ideology, Phony Scarcity | Greenpeace, Igor Sechin, Rosneft, Russia, United States |
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Introduction
US relations with Venezuela illustrate the specific mechanisms with which an imperial power seeks to sustain client states and overthrow independent nationalist governments. By examining US strategic goals and its tactical measures, we can set forth several propositions about (1) the nature and instruments of imperial politics, (2) the shifting context and contingencies which influence the successes and failures of specific policies and (3) the importance of regional and global political alignments and priorities.
Method of Analysis
A comparative historical approach highlights the different policies, contexts and outcomes of imperial policies during two distinct Presidential periods: the ascendancy of neo-liberal client regimes (Perez and Caldera) of the late 1980’s to 1998; and the rise and consolidation of a nationalist populist government under President Chavez (1999-2012).
During the 1980’s and 1990’s US successes in securing policies favorable to US economic and foreign policy interests under client rulership fixed, in the mind of Washington, the optimal and only acceptable model and criteria for responding (negatively) to the subsequent Chavez nationalist government.
US policy to Venezuela in the 1990’s and its successes, were part and parcel of a general embrace of neo-liberal electoral regimes in Latin America. Washington and its allies in the International Monetary Fund (IMF), the World Bank (WB) and the Inter-American Development Bank (IDB) promoted and supported regimes throughout Latin America which privatized and de-nationalized over five thousand public enterprises in the most lucrative economic sectors. These quasi-public monopolies included natural resources, energy, finance, trade, transport and telecommunications. Neo-liberal client regimes reversed 50 years of economic and social policy, concentrated wealth, deregulated the economy, and laid the basis for profound crises, which discredited neo-liberalism. Continent-wide popular uprisings and regime changes, led to nationalist populist governments.
The historical-comparative approach allows us to analyze Washington’s response to the rise and demise of neo-liberal clients and the subsequent ascendency of populist-nationalism and how regional patterns and changes influence the capacity of an imperial power to intervene and attempt to re-establish its dominance.
Conceptual Framework
The key to understanding the mode and means of imposing and sustaining imperial dominance is to recognize that Washington combines multiple forms of struggle, depending on resources, available collaborators, opportunities and contingencies.
In approaching client regimes, Washington combines military and economic aid to repress opposition and buttress economic allies by cushioning crises. Imperial propaganda via the mass media provide political legitimacy and diplomatic backing, especially when client regimes engage in gross human rights violations and high level corruption.
Conversely when attempting to weaken or overthrow a nationalist-populist regime, the empire will resort to multiple forms of attack including (1) corruption (buying off government backers) (2) funding and organizing opposition media, parties, business and trade union organizations, (3) organizing and backing disloyal military officials to violently overthrow the elected government (4) support employers’ lockouts to paralyze strategic sectors of the economy (oil)(5) financing referendums and other ‘legal mechanisms’ to revoke democratic mandates, (6) promoting paramilitary groups to destabilize civil society and sow public insecurity and undermine agrarian reforms; (7) finance electoral parties and non-governmental organizations to compete in and delegitimize elections; (8) engage in diplomatic warfare and efforts to prejudice regional relations; (9) establish military bases in neighboring countries, as a platform for joint military invasions.
The multi-prong, multi-track policies occur in sequence or are combined, depending on the opportunities and results of earlier tactical outcomes. For example, while financing the electoral campaign of Capriles Radonski in April 2013, Washington also backed violent post-election assaults by rightist thugs attempting to destabilize the government.
Secretary of State Kerry while pursuing an apparent effort to re-open diplomatic relations via negotiations simultaneously backed a highly inflammatory declaration by Samantha Power, US United Nations representative, vowing aggressive intrusion in Venezuela’s domestic politics.
US-Venezuelan relations provide us with a case study that illustrates how efforts to restore hegemonic politics can become an obstacle to the development of normal relations with an independent country. In particular, the ascendancy of Washington during the “Golden Age” of neoliberalism in the 1990’s, established a fixed ‘mind set’, which was incapable of adapting to the changed circumstances, of the 2000’s, a period witnessing the demise and discredit of ‘free market’ client politics. The rigidity derived from past success led Washington to pursue a ‘restoration politics’ under very unfavorable circumstances, involving military, clandestine and other illicit policies with very improbable possibilities of success.
The unfavorable outcome of US efforts to destabilize a democratically elected nationalist popular regime in Venezuela occurred when Washington was heavily engaged in multiple, prolonged wars and conflicts in several countries (Iraq, Afghanistan, Pakistan, Somalia, and Libya). This validates the hypothesis that even a global power is incapable of waging warfare in multiple locations at the same time.
Given the shift in world market conditions, including the increase in commodity prices, (especially energy), the relative economic decline of the US and rise of Asia, Washington lost a strategic economic lever – market power – in the 2000’s, a resource which it possessed during the previous decade.
Given the shift in political power in the region, the rise of popular-nationalist governments in most of Latin America, Washington lost regional leverage to ‘encircle’, ‘boycott’ and intervene in Venezuela. Even among its few clients, like Colombia, Washington could do no more than create ‘border tensions’ rather than a joint military attack.
Comparative historical analysis of the strategic changes in international and regional politics, economies, markets and alignments provides a useful framework for interpreting US-Venezuelan relations, especially the successes of the 1990’s and the failures of the 2000’s.
US-Venezuela Patron-Client Relations 1960’s -1998
During the 40 year period following the overthrow of the Dictator Perez Jimenez (1958) and prior to the election of President Hugo Chavez (1998) Venezuela’s politics were marked with conformity to US political and economic interests on all strategic issues. Venezuelan regimes followed Washington’s lead in ousting Cuba from the Organization of American States, breaking relations with Havana and promoting a hemispheric blockade. Caracas followed Washington’s lead during the cold War, backed its counter-insurgency policies in Latin America. It opposed the democratic leftist regime in Chile under President Allende, the nationalist governments of Brazil (1961-64) and Peru (1967-73), Bolivia (1968-71) and Ecuador (in the 1970’s). It supported the US invasions of the Dominican Republic, Panama and Grenada. Venezuela’s nationalization of oil (1976) provided lucrative compensation and generous service contracts with US oil companies, a settlement far more generous than any comparable arrangement in the Middle East or Latin America.
During the decade from the late 1980’s to 1998, Venezuela signed off on draconian International Monetary Fund programs, including privatizations of natural resources, devaluations and austerity programs which enriched the Multinational Corporation (MNC), emptied the Treasury and impoverished the majority of wage and salary earners. In foreign policy Venezuela aligned with the US, ignored new trade openings in Latin America and Asia and moved to re-privatize its oil, bauxite and other primary resources. President Perez was indicted in a massive corruption scandal. Implementation of a US-IMF austerity program led to a massive popular uprising and the massacre of over a thousand protestors. The subsequent Caldera regime presided over the triple scourge of triple digit inflation, 50% poverty rates and double digit unemployment.
Venezuela touched bottom at the peak of US hegemony in the region. The inverse relation was not casual, as Venezuela under Caldera followed austerity, open markets and US centered policies which undermined any public policies to revive the economy. Moreover, world market conditions were unfavorable, as oil prices were low and China was not yet a world market power.
US and the Rise of Chavez: 1998-2001
The US viewed the Venezuelan elections of 1998 as a continuation of the previous decade despite significant political signs of changes. The two parties, which dominated and alternated in power, the Christian Democratic COPEI, and the social democratic Democratic Action Party, were soundly defeated by a new political formation headed by a former military officer, Hugo Chavez, who led an armed uprising six years earlier and who had engaged in a massive grass roots campaign, attracting radicals, revolutionaries, opportunists and defectors from the two major parties.
Washington’s successes over the previous decade, the entrenched ascendancy of neo-liberalism and the advance of a regional US free trade agreement blinded the Clinton regime from seeing (1) the economic crisis and discredit of the neo-liberal model; (2) the deepening social and economic polarization and hostility to the IMF-USA among broad sectors of the class structure; (3) the decay and discredit of its client political parties and regimes. Washington tended to write-off Chavez’s promises of a new constitutional order and new “Bolivarian” foreign and domestic policies which included promises of nationalist-populist reforms, as typical Latin campaign rhetoric. The general thinking in the State Department was that Chavez was engaging in electoral demagogy and that he would “come to his senses” after taking office. Moreover Washington’s Latin Americanists believed that the mix of traditional politicians and technocrats in his motley coalition would undermine any consequential push for leftist radical changes.
Hence Washington under Clinton did not adapt a hostile position during the first months of the Chavez government. The watchword among the Clintonites was “wait and see” and count on long-standing ties to the major business associations, friendly military officials, and corrupt trade union bosses and oil executives, to check or block any new radical initiatives emanating from Congress or the Executive. In other words Washington counted on using the permanent state apparatus to counter the electoral regime.
Chavez recognized the institutional obstacles to nationalist socio-economic reforms and immediately called for constitutional changes, convoked elections for a constituent assembly, which he won handily. Washington’s growing concerns over the possible consequences of new elections were tempered by two factors: (1) the mixed composition of the elected assembly (old line politicians, moderate leftists, radicals and ‘unknowns’); (2) the ‘moderate’ appointments to the Central Bank and the orthodox economic policies pursued by the finance and economic ministry. Prudent budgets, fiscal deficits and balance of payments were at the top of the agenda.
The new constitution, included clauses favoring a radical social and nationalist agenda, and led to the defection of some of the more conservative early supporters aligned with Washington which in turn signaled the first overt signs of US opposition. Veteran State Department officials debated whether the new radical constitution would form the bases of a leftist government or whether it was standard symbolic fare, rhetorical flourishes to be heavily discounted, merely symbolic changes by a populist president to satisfy the Latin temperament in hard times but not likely to be followed by substantive reforms. The hard liners linked to the exile Cuba lobby argued that Chavez was a “closet” radical, who was preparing the way for more radical ‘communist’ measures. In fact Chavez policies were both moderate and radical. His political zig-zags, reflected his efforts to navigate a moderate reform agenda without alienating the US and the business community on the one hand, and on the other hand he sought to retain and respond to his mass base among the impoverished slum dwellers (rancheros’) who voted for him.
Strategically Chavez succeeded in creating a strong political institutional base in the legislature, civil administration and military which could (or would) approve and implement his national-populist agenda. Unlike Chilean Socialist President Allende, Chavez first consolidated his political and military base and then proceeded to socio-economic changes.
By the end of 2000, Washington moved to regroup its internal client political forces into a formidable political opposition. Chavez was too independent, not easily controlled, and most important moving in the “wrong direction”, away from a blind embrace of neo-liberalism and US centered regional integration. In other words while Chavez was still well within the parameters of US hegemony, the direction he was taking portended a possible break.
The Turning Point: Chavez Defies the ‘War on Terror’ 2000-2001
The decade beginning the new millennium was a tumultuous period which played a major role in defining US-Venezuelan relations. Several inter-related events polarized the hemisphere, weakened Washington’s influence, undermined collaborator client regimes and led to a major confrontation with Venezuela.
First, the neo-liberal model fell into deep crises throughout the region; discrediting the US backed clients in Bolivia, Argentina, Ecuador, Brazil and elsewhere. Secondly, repeated major popular uprisings occurred during the crises and populist-nationalist politicians came to power, rejecting US-IMF tutelage and US centered regional trade agreements. Thirdly, Washington launched a global “war on terror”, essentially an offensive military strategy, designed to overthrow adversaries to US domination and Israeli supremacy in the Middle East. In Latin America, Washington’s launch of the “war on terror” occurred precisely at the high point of crises and popular rebellion, undermining any regional support. Fourthly, beginning in 2003, commodity prices skyrocketed, as China’s economy took off, creating lucrative markets stimulating high growth for the new left of center regimes.
In this vortex of change, President Chavez rejected Washington’s “War on Terror”, arguing against “fighting terror with terror”. By the end of 2001, Washington dispatched a top State Department official, Marc Grossman, to Caracas where he bluntly threatened dire reprisals – thinly veiled destabilization measures – if Caracas failed to fall-in with Washington’s attempt to reimpose global hegemony. Chavez dismissed Grossman and realigned with the emerging Latin American nationalist populist consensus. In other words Washington’s aggressive militarist posture polarized relations, increased tensions and, to a degree, radicalized Venezuela’s foreign policy.
Washington’s interventionary machinery went into high gear: Ambassador Shapiro held several meetings with FEDECAMARAS (the business association) and the trade union bosses of the CTV. The Pentagon and the Southern Command met with client military officials. The State Department increased contacts and funding for opposition NGO’s and right-wing street gangs. The date of the coup was set for April 11, 2002. Meanwhile, the Chavez government began to assess its resources. Loyalist military groups especially in the armored battalions and paratroops were contacted.
Local neighborhood committees emerged and set out to mobilize the poor around a more radical social agenda and to defend the government, as the US backed opposition escalated street fighting. The coup was welcomed and openly supported by Washington and its semi-official mouthpiece the New York Times, and the rightwing Spanish Prime Minister Aznar. The illicit regime moved quickly to arrest President Chavez, dismiss Congress, dissolve political parties and declare a state of emergency. The masses and leading sectors of the military quickly and massively responded: millions of poor Venezuelans descended from the ranchos and amassed before Miraflores, the Presidential Palace, demanding the return of their elected President and repudiating the coup. The constitutionalist military led by an elite paratroop battalion threatened a full scale military assault. The coup makers, politically isolated and militarily outgunned, surrendered. Chavez returned to power. The US policy of regime change to restore hegemony was defeated; important assets were forced into exile and purged from the military. Washington played a risky card and lost on several fronts. First of all US support for the coup, strengthened the Bolivarian anti-imperialist sectors of Chavez’s movement. Chavez discarded illusions of “reaching an accommodation” with Washington. Secondly, the loss of key military assets weakened the possibility of Washington launching a future coup. Thirdly, the complicity of the business groups weakened their role in influencing Chavez’s economic policies, forcing him toward a more statist economic strategy. Fourthly, the mass mobilization of the poor to restore democracy pressured the government to increase social spending on welfare programs. Anti-imperialism, social welfare and national security concerns led Chavez toward strategic ties with Cuba, as a natural ally.
Washington’s escalation of aggression and overt commitment to regime change altered the entire relationship to one of permanent hostility. Spurred on by its backing of a failed coup, Washington resorted once again to ‘direct action’, backing a “boss’s lockout” of the strategic oil industry led by “client assets” among the executives and sectors of the petroleum workers union.
Washington put into practice in Venezuela the global militarization of US foreign policy. Under the subterfuge “War on Terror” formula for global intervention, (which included the invasion of Afghanistan, 2001) and later the war against Iraq (2003) imperial policymakers plunged ahead with new aggressive policies.
The pretext for aggression against Venezuela was not directly linked to oil or Chavez’s appeal for Latin American integration. The trigger was Chavez’s rejection of Bush’s world view of global empire conquered by force of arms and sustained by collaborator vassal states. The oil conflicts – Chavez nationalization of US oil concessions and his appeal for regional integration excluding the US and Canada, were a result of and in response to US overt aggression. Prior to the US backed April 2002 coup and the oil-executives lockout of December 2002 – February 2003, there were no major conflicts between Chavez and US petroleum companies; Chavez’s conception of Bolivarian unity of all Latin American states was a “vision” not a concrete program for action. Chavez’s takeover of US oil concessions was a defensive political move to eliminate a political adversary controlling the strategic export and revenue sectors. He did not intervene against European oil companies. Likewise, Chavez’s move to promote regional organizations flowed from his perception that Venezuela required closer ties and supportive relations in Latin America to counter US imperial aggression.
In other words US empire builders used (and sacrificed) economic assets to restore hegemony via military means. The military and strategic dimensions of the US Empire took precedence over Big Oil. A pattern evident in all of its subsequent imperial endeavors in Iraq, Libya and Syria and its severe economic sanctions against Iran. The same hegemonic priorities were evident in Washington’s intervention in Venezuela.
Contrary to some theorists of imperialism, who argue that imperialism expands via economic “dispossession”, recent history of US Venezuela relations demonstrates that 21st century US imperialism grows via political intervention, military coups and by converting economic collaborators into political agents willing to sacrifice corporate wealth to secure imperial military-political domination.
The decision by imperial policymakers to overthrow Chavez was based on his opposition to Washington’s global military strategy. The White House thought it had strong assets in Venezuela: the mass media, two major opposition parties, the principle business federation (FEDECAMARAS), the official trade union bureaucracy, sectors of the military and the church hierarchy … Washington did not count on the unorganized masses and popular movements with powerful loyalty and affection for President Chavez. Nor did imperial strategists recognize that strategic military units like the paratroops retained national, personal and political ties with the democratically elected President.
The rapid restoration of Chavez to power (48 hours) was the first blow to Washington’s restorationist pretentions. The second was the defeat of the US backed oil executives lockout. Washington counted on its close ties with the senior executives of the state oil company (PDVS) and the heads of the oil workers union. Washington failed to take account of the minority of executives and close to half of the oil workers who opposed the lockout and the fact that Latin American oil producers would supply Chavez and break the lockout.
The twin defeats, the military-business coup and the bosses’ lockout had a profound impact on US-Venezuelan relations. The US lost strategic internal assets – business and trade union elites fled to exile or resigned. Pro-US oil executives were replaced by nationalists. Moreover, Washington’s direct imperial intervention radicalized the Chavez government, which moved decisively from conciliation to confrontation and opposition. Venezuela adapted to the new active radical mood of the country by launching a nationalist, populist agenda and actively promoting Latin American integration. Venezuela launched UNASUR, ALBA, PetroCaribe and scuttled a US centered free trade treaty.
The loss of key assets undermined Washington’s direct action military strategy. The White House turned to is remaining political and social assets channeling funds to the electoral parties and especially to so-called non-governmental organizations (NGOs). Washington via the National Endowment for Democracy and other “front groups” bankrolled a recall referendum which was decisively defeated, demoralizing the right-wing electorate and weakening remaining US assets.
Having lost on the military, economic and electoral front, Washington sought to delegitimize the government by boycotting Congressional elections, leading to the final debacle. Pro-Chavez parties swept the election, gained an overwhelming majority, and proceeded to approve all of the government’s nationalist-social reform agenda. The US backed opposition lost all institutional leverage.
The US imperial failures between 2002-2005 did not merely reflect mistaken policies but had a deeper cause: the incapacity to make a proper estimate of the correlation of forces. This strategic failure led it to continue to throw its shrinking domestic assets into conflict with less resources and backing. Despite repeated defeats, Washington failed to realize that popular power and nationalist allegiances within the military could successfully counter US business-military intervention. Political hubris informed by military-driven imperialist ideology blinded Washington to the on-the ground realities that Chavez possessed popular support and was backed by nationalist military officers. Acting under increasingly unfavorable conditions, but desperate for some political ‘victory’, Washington plunged from one adventure to another, without reflecting on lost assets or declining opportunities. It failed to take account of decisive political shifts in Latin America and favorable conditions in the world economy for petrol exporters. To support a recall referendum in the face of double-digit growth, a radicalized mass public and booming commodity prices, was the height of imperial imbecility.
Imperial Policy During the Commodity Boom 2004-2008
With virtual no active assets of consequence, Washington turned toward an ‘external strategy’ linked to its only loyal collaborator, the death squad narco-President Alvaro Uribe of Colombia. Washington secured seven military bases, airfields, Special Forces missions and a platform for cross border intrusions. The strategy was to launch a joint intervention based on the pretext of Venezuelan links to the FARC guerillas.
However, full scale imperial warfare in Iraq, a prolonged war in Afghanistan, threatened conflicts with Iran, low intensity warfare in Somalia, Yemen and Pakistan, weakened Washington’s capacity to engage in a new prolonged war in Venezuela. US intervention would be opposed by every country in the region. Colombia was not willing to go it alone especially with a full-scale guerrilla war internally.
Because of Venezuela’s trade surplus and high export revenues traditional Washington financial levers like the IMF and World Bank were inoperative. Likewise Venezuela signed multi-billion dollar military trade agreements with Russia, undermining a US arms sales boycott. Trade agreements with Brazil and Argentina lessened Venezuela’s dependence on US food imports.
All non-US MNC in the petroleum sector continued operations, ignoring the conflicts with US companies. The government’s selective nationalization program and moderate increases in taxes and royalty payments weakened EU support for the US, given the high price of oil (exceeding $100 dollars a barrel). Chavez’s left-turn was well funded. The massive allocation of oil revenues for a wide-range of social programs, ranging from subsidized food, housing and welfare, and free health and educational programs, led to the massive reduction of poverty and unemployment and secured an electoral majority. Washington’s “pivot to the Middle East” led to the US becoming bogged down in a series of prolonged wars, eroding Washington’s quest for regional power.
More significantly, the State Department and Pentagon’s Latin Americanists remained tied to the 1990’s paradigm of free markets and vassal states at a time when the most important countries in the region were moving toward greater independence in trade, greater intra-regional integration and social inclusion. Unable to adapt to the new regional realities, Washington witnessed the region’s rejection of US centered free trade accords. China displaced, the US as the regions’ main trading partner. The loss of collaborator military elites as coup-makers for empire, further eroded imperial reach. Coup efforts in Bolivia and Ecuador failed and radicalized political relations toward the US.
However, Washington was not without partners: bilateral trade agreements were signed with Chile, Panama, Colombia and Mexico. The Pentagon engineered a coup in Honduras. The National Security Agency engaged in major cyber spying operations in Brazil, Mexico and the rest of the continent. The White House poured over six billions into Colombia’s armed forces as a proxy for the US military. These “gains” had little impact. US support for the Honduran military coup displaced a Venezuelan ally in ALBA but led to Washington’s diplomatic isolation and discredit throughout Latin America. Even Colombia, its closest client, opposed the coup. US military support for Colombia temporarily contributed to border tensions with Venezuela but with the election of a new President (Santos), Colombia moved toward reconciliation and peaceful coexistence with Venezuela. Under President Uribe trade fell to less than $2 billion; with Santos’ conciliatory policy it rose to nearly $10 billion.
Washington’s external strategy was in shambles. Cyber spying by the NSA was exposed by Edward Snowden and resulted in greater animosity toward Washington, especially from Brazil, which cancelled a White House visit and allocated $10 billion to fund a nationally controlled IT system. Imperial policy makers relied exclusively on interventionist strategies which depended on military-intelligence operations, an approach which was out of touch with the new configuration of power in Latin America. In contrast, Venezuela deepened its economic ties with the new regional and global economic power centers, as the foundations for its independent policies.
Chavez and President Maduro’s regional strategy was seen in Washington as a security threat rather than an economic challenge to US hegemony. Venezuela’s success in promoting bilateral ties, even with US clients like Colombia and Mexico, and several English-speaking Caribbean islands, undermined efforts to ‘encircle and isolate’ Venezuela. Caracas success in financing and backing multi-lateral regional economic and political organizations – that exclude the US– in South America and the Caribbean reflects the power of oil diplomacy over saber rattling. Venezuela’s promotion of PetroCaribe, aligned a number of neo-liberal and center-left regimes in the Carribbean, previously under US hegemony, with Venezuela. In exchange for subsidized oil prices, medical aid and interest free loans, they rejected US intrusions. ALBA brought together several center-left governments, including Bolivia, Ecuador and Nicaragua into a common political bloc opposing US interventionism.
ALBA firmly rejected coups in Latin America and Washington’s overseas wars in Libya, Syria and elsewhere. Venezuela successfully joined the powerful economic bloc, MERCOSUR, enhancing its trade with Brazil, Argentina and Uruguay. Venezuela’s strategic alliance with Cuba (oil for medical aid) enormously improved Caracas capacity to implement its free health program, an important welfare reform which solidified Chavez and Maduros’ electoral base among the poor and undermined Washington’s funding of NGO “grassroots” subversion in poor neighborhoods. Venezuela successfully undercut Bush and Obama’s efforts to use Colombia as a “military proxy” through a historic peace and reconciliation agreement with President Santos. Colombia agreed to end its cross-border paramilitary and military incursions and support for US destabilization operations in exchange for Venezuela closing guerrilla sanctuaries, reopening trade relations and encouraging the FARC to enter into peace negotiations with the Santos regime. Santos’ embrace of Venezuela’s trade and diplomatic ties, eroded Washington’s ‘outside military strategy’ and forced imperial policy-makers to emphasize relying on internal clients engaged in electoral politics and ‘direct action’ (sabotage of electoral power grids, hoarding of essential foodstuff).
While Washington’s imperial rhetoric emphasizes Venezuela as a “security threat” to the Hemisphere, no other country subscribes to that doctrine. Latin America sees Caracas as a partner in integration and a lucrative market. Moreover, US diplomacy does not follow trade: only Mexico is more dependent on the US oil market than Venezuela. Venezuela’s dependence on the US market for oil is in the process of changing. In 2013 Venezuela signed off on a $20 billion dollar investment and trade deal with China to exploit “heavy oil” in the Orinoco Basin. Venezuela’s trade ties to the US contrast with the hostile diplomatic relations which have led to the mutual withdrawal of ambassadors and continuing US gross interference in Venezuela’s electoral process. For example in March 2013, two US military attaches were expelled for attempting to recruit Venezuelan military officials. Later the same year in September, three Embassy officials were expelled for plotting destabilization activity with members of the far right opposition.
Imperialism’s Multi-Track Opposition
US hostility toward Venezuela is based on three levels of conflict. At the country-level, Venezuela marks out a new development paradigm which features public ownership over the free market, social welfare over multi-national oil profits, and popular power over elite rule. At the regional level, Venezuela promotes Latin American integration over US centered Latin American Free Trade Agreements; anti-imperialism over “pan-Americanism”; foreign aid based on reciprocal economic interests; and non-intervention as opposed to US military pacts, narco-military intrusions and military bases.
At the global-level Venezuela has rejected the US invasions of Afghanistan and Iraq, ignored US trade sanctions toward Iran, opposed Washington and NATO’s bombing of Libya and proxy invasion of Syria. Venezuela condemns Israeli colonization and annexation of Palestine. In other words Venezuela upholds national self-determination against US military driven imperialism.
Chavez and Maduro pose a successful alternative to neo-liberalism. Venezuela demonstrates that a highly globalized, trade dependent economy is compatible with an advanced welfare program. The US, on the other hand, as it “globalizes”, is eliminating welfare programs to finance imperial wars. Venezuela is telling the US public that a market economy and large social welfare budget are not incompatible. This paradigm conflicts with the message from the White House. Moreover, US Empire builders have no economic initiatives to counter Venezuela’s regional and global alliances. Unlike the 1960’s when President Kennedy proposed the “Alliance for Progress” involving trade, aid and reforms to counter the revolutionary appeal of the Cuban revolution. In contrast Bush and Obama “offer” costly military and police co-operation and warmed over neo-liberal clichés accompanied by market constraints.
Despite severe diplomatic setbacks, regional isolation, the loss of a military platform, and a commodity driven economic boom in Venezuela, Washington persisted in its efforts to destabilize Venezuela. Beginning in 2007, imperial strategy re-focused on electoral processes and destabilization. The first success was the defeat by less than 1% of Chavez constitutional amendments in December 2007 right after a substantial Presidential victory. Apparently the overtly socialist constitution was too radical for a sector of the Venezuelan electorate.
From 2008 onward Washington pumped large sums into a variety of political assets including NGOs and middle class university students’ organizations engaged in agitation and street demonstrations. The goal was to exploit local grievances. US funding of proxies promoted extra-parliamentary, destabilization activity, disrupting the economy while blaming the government for public insecurity and covering up opposition violence.
Business owners were encouraged to engage in hoarding in order to provoke shortages and popular discontent; the media blamed state “inefficiency”. Opposition political parties received financial backing, on condition that they unified and ran on a single slate in contesting elections and questioned the legitimacy of elections (claiming ‘fraud’) after their defeat.
In summary US efforts to restore hegemony relied on surrogates, which ran the gamut from violent paramilitary groups, NGO’s, political parties, elected officials and manufacturing and commercial executives, linked to the production and distribution of essential consumer goods.
Washington’s shifts in policies, from internal violence (coup of 2002, oil lockout of 2002-03), and external military threats (2004-2006), to a return to internal electoral politics and business destabilization campaigns reflects attempts to overcome failed policies without surrendering the strategic objective of restoring hegemony via overthrowing the elected government (“regime change” in the imperial lexicon).
Seven Keys to Imperial Politics: An Overview
Washington’s decade and a half efforts to restore hegemony and reimpose a client regime revolve around imperial capacities to secure seven strategic goals.
1) Imperial capacity to successfully overthrow a nationalist government revolves around possessing a unified client military command. Chavez ensured that he retained loyal strategic military sectors able to counter the imperial proxies.
2) Imperial capacity to militarily intervene depends on not being tied down in ongoing serial wars and on securing regional partners willing to jointly engage. Neither condition was present. US imperial policy concentrated its military forces in the Middle East and South Asia, in prolonged wars which created public antipathy to launching another war in Venezuela. The attempt to convert Colombia into an active ally in war failed because of the economic trade losses incurred by the Colombian business elite in the run-up to border skirmishes. Washington offered little or nothing in economic compensation or alternative markets for Colombian exporters since most of US “aid” (Plan Colombia) involved military transfers and sales.
3) The imperial destabilization campaign ran through strategic assets because of premature, ill-calculated and high risk operations in which one failure led to even higher risk interventions in an effort to cover-up a bankrupt strategy. The US backed coup of 2002 was clearly based on poor intelligence and underestimation of President Chavez’s support. Washington failed to appreciate Chavez’s astute institutional changes, in particular the promotion of loyalist sectors of the armed forces. Blinded by ideological blinders, Washington counted on its business allies and trade union bureaucrats to “turn-out the crowds” to back the junta and provide a legal cover. In the face of serious losses resulting from the subsequent purging of client elites in the military and business associations, Washington unleashed its client oil executives and trade union officials to mount an oil lockout, which lacked backing among the loyalist military. Over time the shutdown of oil production and delivery, alienated wide swathes of the business community and consumers, suffering from the absence of transport and distribution of commodities. The defeat of the oil lockout resulted in the purge of over ten thousand US clients among senior and middle management and the reorientation of the PDVSA (the state oil company) into a formidable political instrument funding Venezuela’s comprehensive social welfare programs.
Increases in social spending in turn provided a powerful boost in Chavez’s electoral support and consolidated his mass base among the vast majority of the poor. Imperial strategists then converted their extra-parliamentary defeats into an electoral rout by launching a referendum in the face of the Chavez offensive and suffered a decisive and demoralizing defeat. To make a virtue of multiple disasters, Washington backed a boycott of Congressional elections which resulted in near unanimous Chavista control of Congress and a mandate to legally approved Chavez executive prerogatives. Chavez used executive decrees to promote an anti-imperialist foreign policy without even minimum opposition.
4) Imperial ‘neo-liberal’ and ‘war on terror’ ideological warfare was launched in Latin America against Venezuela (2001 onward) at the precise moment of widespread revolts, uprisings and client regime changes throughout the region. The continental rebellion against US centered free-market regimes, resonated with Chavez’s nationalist-populism. As a result Washington’s ideological appeals fell on arid soil. The dogmatic embrace of a failed development strategy and the continued embrace of hated clients ensured that Washington’s ideological war against Venezuela would boomerang: instead of isolating and encircling Venezuela, it led to greater Latin American regional solidarity and the isolation of the US. Instead of dumping discredited clients and attempting to adapt to the changing anti-neo-liberal climate, Washington, for internal reasons (the ascent of Wall Street), persisted in pursuing a self-defeating propaganda war.
5) Imperial efforts at the restoration of hegemony required an economic crises, including low world market prices and weak demand for commodities, declining incomes and employment, severe balance of payment problems and fiscal deficits to provide leverage to destabilize targeted regimes. None of these conditions were present in Venezuela. On the contrary commodity demand and prices boomed. Venezuela grew by double-digits. Unemployment and poverty sharply declined. Easy and available consumer credit and increased public spending greatly expanded the domestic market. Free health and education and public housing programs grew exponentially. In other words global macro-economic and local social conditions favored the anti-hegemonic perspectives of the government. US and clients’ efforts to demonize Chavez failed. Instead of embracing popular programs and focusing on problems of implementation and mismanagement, Washington embraced local political clients associated with the deep socio-economic crises of the ‘lost decade’ (1989-1999) prior to Chavez assent to power. Imperial critics in Latin America easily refuted Washington’s attacks on the Chavez development model by citing favorable employment, income, purchasing power and living standards compared to the previous neoliberal period
6) Imperial policy makers emphasized global ideological-military confrontation at a moment when leaders and public opinion in Latin America were thinking and pursuing market opportunities. The “War on Terror”, Washington’s hobby horse for global supremacy, had minimum support; China’s demand for Latin America commodities led to the Asian country displacing the US as the major market for Latin exports. Global militarism was not conducive to restoring hegemony when the Latin consensus pivoted around markets, poverty reduction, democracy and citizen participation. During past decades US global militarism resonated in Latin America when it was ruled by military regimes. Washington’s attempt to resort to the earlier period of military rule by backing a military coup in Honduras was soundly denounced throughout the continent, not only by center-left governments but even by conservative civilian regimes, fearful of a return to military rule at their expense.
7) The change from a Republican to a Democratic regime in Washington, did not result in any substantive change in imperial policy toward Venezuela or Latin America. It only led to the entrée of the “double discourse”. Obama spoke of a “new beginning”, ‘new overtures’ and ‘shared values’. In practice Washington proceeded to military provocations from its bases in Colombia, backed the Honduras military coup, supported a violent destabilization campaign in April 2013 following the defeat of its Presidential candidate Henrique Capriles Radonski by the Chavista, Nicholas Maduro. The Obama regime was the only one in the hemisphere (and the OECD) which failed to recognize the legitimacy of the Presidential election results. Political changes in imperial countries, from a liberal to a conservative president (or vice versa), does not in any way affect the deep imperial state, its military interests or strategies. President Obama’s resort to the double discourse, to talk diplomatically and act militarily, as a mode of hegemonic rule, quickly lost its attraction and effectiveness even among centrist-post-neo-liberal leaders.
Imperialism is not simply a ‘policy’ it is a structure, with a powerful military aid financial component which depends on strategically placed collaborators and supporters in targeted countries, operating in favorable (crises ridden) environments. Imperialism flourishes when its military and diplomatic approach serves economic interests which benefit the ‘home market’ and rewards local collaborators. In the second decade of the 21st century, the predominance of ‘military driven imperialism’ bleeds the home economy, impoverishes the targeted society and depresses living standards. Destructive wars even weaken client elites.
Latin American and Venezuelan development oriented leaders look elsewhere, to newly emerging economic powers with growing markets. They pursue economic ties which are not accompanied by military and security threats of intervention. Chinese investments are not accompanied by military missions and massive spy networks like the CIA, DEA and NSA posing armed threats to national sovereignty.
The Imperial Dynamic and the Radicalization of Venezuelan Politics
Imperial intervention can have multiple and contrasting effects. It can intimidate a nationalist government and force it to renege on its electoral promises and revert to a liberal agenda. It can lead to an accommodation to imperial foreign policies and force a progressive government to moderate domestic reforms. It can lead to concessions to imperial interests, including military bases, concessions to extractive capital including the dispossession of local producers to facilitate capital accumulation. Covert or overt intervention can also radicalize a moderate reformist government and force it to adopt anti-imperialist and socialist measures as defensive strategy. Over time incremental changes can become the bases for a pro-active radical leftist agenda.
The range of systemic responses illustrates the analytical weakness of the so-called “center-periphery” framework, which lumps together (a) disparate political, social and economic internal configurations, (b) opposing strategies and responses to imperialism and (c) complex international relations between imperial and nationalist regimes. The polar opposite responses and political-economic configurations of the US and China (so-called “centers”) to Venezuela further illustrates the lack of analytical utility of the so called “world system” approach in comparison with a class anchored framework.
The imperial dynamic, the drive by Washington to reassert hegemony in Venezuela by overthrowing the nationalist regime, had the unintended consequence of radicalizing its policies, consolidating its power and furthering the spread of anti—imperialist programs throughout the region. In the first years of the Chavez government, roughly between 1999-2001, Venezuela pursued largely orthodox policies, friendly relations with Washington, while espousing a Bolivarian vision. In practice Chavez did not put into practice his vision, nor provide any resources to fund a regional organization that excluded the US.
Washington, at this time, retained ties to its clients in the opposition. It sought to influence a motley collection of opportunist politicos who jumped on the Chavez bandwagon, to counter the left political sectors of the coalition government.
The first break in peaceful co-existence was precipitated by Washington’s big push for global power via the so-called “War on Terror” doctrine. Its ultimatum that Chavez support its military offensives targeting Afghanistan and Iraq or face retaliation provoked the break. Chavez resisted and adopted the position that the “War on Terror” violates international law. In other words, Venezuela upheld traditional international norms at a moment of Washington’s embrace of global military extremism. Washington perceived Chavez’s policy as setting an example or precedent for other “recalcitrant” states within Latin America and across the globe. As a result beginning with an overt State Department warning that “he (Chavez) would pay a price” for not submitting to the US global military offensive, Washington rapidly proceeded to put into operation plans to overthrow the ‘government via the coup of April 2002. If the trigger to US imperial intervention was Chavez lawful opposition to the global military strategy, the defeat of the coup and his restoration to power, led a redefinition of Venezuelan-US relations. Bilateral relations went from co-existence to confrontation. Venezuela began the search for regional allies, actively supporting left and nationalist movements and governments in Latin America. Simultaneously it pursued relations with imperial rivals and adversaries including Russia, China, Belarus and Iran.
Washington launched a second effort to unseat Chavez by backing the oil executives lockout – severely damaging the lifeblood of the economy. The defeat and purge of the US backed PDVS oil executives, led to the radicalization of social policy – vast reallocation of oil revenues to working class based social programs. Chavez appointed nationalists to key economic ministries selectively nationalized some enterprises and decreed a radical agrarian reform involving the expropriation of fallow landholdings. In part the radical policies were ‘pragmatic’, defensive measures in pursuit of national security. They also were a positive response (payback for support) to the newly mobilized urban and rural poor. Radicalization was also a response to pressure from the nationalist and socialist sectors of the newly formed Socialist Party and trade union confederations. US imperial efforts to isolate Venezuela in the Hemisphere, in the same fashion that it accomplished this policy with regard to Cuba in the 1960’s failed. The region was moving in line with Venezuela: nationalist populist and leftist movements and electoral alliances were replacing US client regimes. Washington’s policy backfired by regionalizing the conflict under unfavorable conditions, Venezuela gained popularity and support while Washington exposed its isolation and witnessed the demise of its effort to secure a regional free trade agreement.
The threat from the US pushed Chavez to redefine the nature of the political process from ‘reform’ to ‘revolution’; from moderate nationalism to 21st century socialism; from a bilateral conflict to a regional confrontation. Venezuela sponsored and promoted several key alliances including ALBA and PetroCaribe; Chavez later broadened Venezuela’s regional ties to include UNASUR and MERCOSUR.
Venezuela’s radical rejection of US hegemony was, however, tempered by structural limitations which provided US empire builders and internal clients with access points to power. The ‘socialization’ program did not affect 80% of the economy. Banking, foreign trade, manufacturing and agriculture remained under private ownership. Over 80% of the mass media remained in the hands of US backed private owners. Transport, food distributors and supermarkets remained privately owned. Electoral processes remained vulnerable to foreign funding by the National Endowment for Democracy and other US conduits. While the mixed economy and open electoral system, secured approval from Latin America’s center-left regimes and neutralized hostile US propaganda, they also allowed the empire through its clients to engage in sabotage and hoarding of vital consumer goods, violent electoral confrontations and permitted the mass media to issue open calls for insurrectionist activity.
The dialectic confrontation between US imperial aggression and Venezuelan nationalism deepened the revolution and spread its appeal overseas. Venezuela’s successful defiance of US imperialism became the defining reality in Latin America.
Imperialism based on militarism and regime destabilization led Venezuela to begin a process of transition to a post neo-liberal, post capitalist economy rooted in regional organizations. Yet this process continued to reflect economic realities from the capitalist past. The US remained Venezuela’s most important petroleum market. The US, caught up in Middle-East wars and sanctions against oil producers (Iraq, Iran, Libya and Syria) was not willing to jeopardize its Venezuelan petrol suppliers via a boycott. Necessity imposed constraints on imperial aggression and Venezuela’s anti-imperialism.
Conclusion
US-Venezuela relations is a casebook study of the complex, structural and contingent dimensions of imperialism and anti-imperialism. Contemporary US empire building, with its global engagement in prolonged serial wars and deteriorating domestic economy, has witnessed a sharp decline in its capacity to intervene and restore hegemonic influence in Latin America. Latin America, in particular Venezuela’s success in resisting imperial threats, demonstrates how much imperial power is contingent on local client regimes and collaborator military elites to sustain imperial hegemony. The entire process of imperial capital accumulation through direct exploitation and ‘dispossession’ is based on securing control over the state which in turn is contingent on defeating anti-imperialist and nationalist governments and movements. Imperialist hegemony can be based on either electoral processes (“democracy”) or result from coups, lockouts and other anti-democratic, authoritarian mechanisms. While historically, economic interests are an important consideration of imperial policymakers, contemporary US imperialism has confronted emerging nationalist governments because of their rejection of “global war” ideology. In other words Venezuela’s rejection of the ideology and practice of offensive wars and violations of international law is the trigger that set in motion imperial intervention. Subsequent conflicts between Washington and Caracas over petrol expropriations and compensation were derived from the larger conflict resulting from the practice of imperial militarism. US oil companies became economic pawns not the subjects of imperialist policymakers.
US imperialist relations to Latin America have changed dramatically in line with the internal changes in class relations. US financial and militarist elites, not industrial-manufacturers dictate policy. The relocation of US manufacturers to Asia and elsewhere is accompanied by the ascendancy of a power configuration whose political pivot is in the Middle East and in particular, in their own words, “securing Israeli superiority in the region”. This has had two opposing effects: on the one hand it has led imperial policymakers to pursue non-economic military agendas in Latin ‘America and on the other to “neglect” or allocate few resources, investments and attention to cultivating ties in Latin America. Inadvertently, the “mid-East pivot” and the militarist definition of reality has allowed Latin America to secure a far greater degree of independence and greater scope for cultivating diverse economic partners in the 21st century than was the case for the greater part of the 20th century.
Have US-Latin American relations permanently changed? Has Venezuela consolidated its independence and achieved the definitive defeat of imperial intervention? It would be premature to draw firm conclusions despite the substantial victories which have been achieved during the first decade and a half of the 21st century.
Pro-US regimes and elites still wield influence throughout Latin America. As was evident in the Presidential elections in Venezuela in April 2013, the US funded opposition candidate Henrique Capriles came within 2% of winning the election. And Washington, true to its destabilizing vocation, refused to recognize the legitimacy of the outcome. Since those elections, several members of the Embassy have been implicated in plots to overthrow the elected government. The ongoing intrusive imperial cyber spying system run by the US National Security Agency is a new element in colonial intervention reaching into the highest spheres of the political and economic systems of the entire region including Venezuela and Brazil the largest country in Latin America. On exposure, Washington affirmed its right to colonize and dominate Brazilian and Venezuelan cyber-space and control all communications between strategic elites.
Obama’s affirmation of the “right to spy” prompted new anti-imperialist measures, including proposals to end ties to US based and controlled information networks. In other words new imperial methods of colonization based on new technologies trigger new anti-imperial responses, at least for independent states.
The anti-neoliberal governments in Latin America heading up the struggle against US hegemony, face serious challenges resulting from the continuing presence of private banking and finance groups, US based multi-nationals and their local collaborators in electoral parties. Except for Venezuela and Bolivia, on-going US-Latin American joint military programs provide opportunities for imperial penetration and recruitment.
The high dependence of Venezuela and the other center-left countries (Ecuador, Argentina, Brazil, Bolivia, etc.) on commodity exports (agriculture, minerals and energy) subjects their finances, and development and social welfare programs to fluctuations and sharp downturns in revenues.
So far world demand for Latin commodities has fueled growth and independence and weakened domestic support for military coups. But can the mega-cycles continue for another decade? This is especially important for Venezuela which has not succeeded in diversifying its economy, oil accounting for over 80% of its export earnings. The China trade, which is growing geometrically, has been based on exports of raw materials and imports of finished goods. This reinforces neocolonial economic tendencies within Latin America.
Intra- Latin American trade (greater integration) is growing and internal markets are expanding. But without changes in class relations, domestic and regional consumer demand cannot become the motor force for a definitive break with imperialist dominated markets. In the face of a second world economic crisis, the US may be forced to lessen its global military incursions but will it return to hemispheric dominance? If commodity demand lessens and the Chinese economy slows, do the post-neoliberal regimes have alternative economic strategies to sustain their independence?
Imperial power in Latin America, and in Venezuela in particular, has suffered serious setbacks but the private property power structures are intact and imperial strategies remain. If the past half-century offers any lessons, it is that imperialism can adapt different political strategies but never surrenders its drive for political, military and economic domination.
Political Chronology of Venezuela
December 1998: Chavez elected
1999: Three referendums all successful: to establish constituent assembly to draft new constitution; to elect membership of constituent assembly; to approve new constitution.
July 2000: ‘Mega-election’: to elect President, national legislators and state and municipal officials. Chavez wins 6 year term with approx. 60% of the popular vote, his Patriotic Pole coalition wins 14 of 23 governorships and majority of seats in National Assembly
April 2002: Failed US backed military-civilian coup
December2, 2002 – Feb. 4, 2003: Failed oil executive and businessmen lockout to topple Chavez government.
August 2004: Recall referendum which Chavez wins by substantial margin
December 2005: Legislative elections: opposition boycotts, results in Chavez supporters dominating the National Assembly.
December 2006: Chavez re-elected with approx. 63% of the popular vote
December 2007: Chavez constitutional amendment package (‘socialism in the 21st century’) narrowly defeated in national referendum
2008: Chavez moves to unite supporters into a single party – the United Socialist Party of Venezuela (PSUV)
November 2008: State and municipal elections: pro-Chavez candidates won 17 of 22 governors’ races and 80% of more than 300 mayoral races
January 2009: National Assembly votes to hold referendum on constitutional amendment to abolish terms limits for all elected government officials.
February 2009: Referendum approved 55% to 45%.
September 2010: National Assembly elections, Chavez supporters won 98 seats (94 for PSUV candidates) versus 87 seats for opposition parties (65 won by 10 opposition parties known as Democratic United Platform/MUD). But the Government failed to win enough seats to enact various part of government agenda such as approving constitutional reforms.
October 2012 Presidential elections: Chavez wins with approx. 55% of popular vote.
December 2012: State and municipal elections, PSUV sweeps to victory.
April 2013: Chavez successor Nicholas Maduro wins election by 51% to 49%.
October 6, 2013
Posted by aletho |
Economics, Timeless or most popular | Hugo Chávez, Inter-American Development Bank, James Petras, John Kerry, Latin America, United States, Venezuela, War on Terror |
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Some 120,000 Swiss signatories have put their names to a petition demanding a monthly minimum wage of $2,800 (2,500 Swiss francs) for every single member of the working adult population. Enough names have been collected for a government vote.
Anything less than the proposed amount would be deemed illegal, even for people working in the lowest paid jobs. A typical fast-food worker in the US earns roughly $1,500 per month.
“It could be one of the landmark historical moments, like the abolition of slavery, or the civil rights movement – of course, those who don’t want it will find excuses, but those who do want it will find solutions,” Enno Schmidt, founder of the Basic Income Initiative, told RT.
A date for the vote itself is yet to be confirmed, however, it could take place before the end of this year, depending on the decision of the Swiss government. The “1:12 initiative” has gained support across the government’s social democrat bloc.
To mark the day, a truck full of 8 million five-cent coins was deposited on the square and spread out in front of the Swiss Parliament in Bern on Saturday.
The money to fund the measure, should it pass, would likely be supplied by the Swiss social insurance system.
“If there’s anywhere that can finance this, it’s Switzerland. Right now we have the ball rolling – it’s down to a ‘yes’ or ‘no’ question. It will then be up to lawmakers to determine exactly where the money will come from,” said Oswald Sigg, former Swiss Vice-Chancellor.
However, it has caused serious concerns about tax rises and pension loss.
“The older generation lived their whole lives in another system so it’s harder for them to actually realize what this means. They have fear, of course, for their pensions, and don’t instantly get that this is a replacement of an old system,” said Che Wagner one of the co-starters of the Basic Income Initiative.
As Switzerland has the 100,000 signature threshold, the country frequently votes on public measures. On November 24, the country will vote on another initiative to cap executive pay at the maximum of twelve times the lowest paid salary member.
One of Switzerland’s biggest CEOs has stated that if the measure passes, he would seriously contemplate moving his company out of the country. “I can’t believe that Switzerland would cause such great harm to its economy,” Glencore CEO Ivan Glasenberg told the Swiss Broadcasting Corporation.
October 6, 2013
Posted by aletho |
Economics, Solidarity and Activism, Timeless or most popular | Activism, Basic Income, Basic income guarantee, Employment, Politics, Switzerland |
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Jeebus, it’s like they’re doing everything possible so that you don’t make it under the wire to 65, isn’t it? Here’s the text of a 2010 letter on NJ letterhead (“MEDICAID COMMUNICATION NO. 10-08”):
The Division of Medical Assistance and Health Services (DMAHS) is reinforcing and updating guidelines that were issued in Medicaid Communication No. 00-16, dated August 10, 2000, governing the recovery of correctly paid Medicaid benefits from the estates of deceased Medicaid clients or former Medicaid clients. The following is a list of important points to remember when determining eligibility and discussing this topic with applicants, clients, authorized representatives and families:
• Medicaid benefits received on or after age 55 are subject to estate recovery. This is specifically stated and acknowledged on the authorization page of the PA-1G Medicaid Application Form.
• DMAHS has an immediate right to recover from the estate unless there is a surviving spouse or child(ren) who is under age 21 or who is blind or permanently and totally disabled. Should any of these exceptions to DMAHS’ right to recover from an estate no longer apply (e.g., death of surviving spouse, attainment of age 21 by surviving child, or death or termination of disability of blind or permanently and totally disabled child), DMAHS has a right to recover from any remaining estate assets at that time.
• Estate recovery in New Jersey includes payments for ALL services, not merely services for institutionalized clients. There is no limitation on the type of service for which DMAHS can recover its payments from estates including managed care (HMO) capitation fees. However, effective January 1, 2010, Medicare cost-sharing benefits paid under the Medicare Savings Programs such as “Buy-in”, Specified Low-Income Medicare Beneficiaries (“SLMB”) or Qualified Individuals (“QI-1”) are not subject to estate recovery.
• The estates of deceased clients who were enrolled in various Title XIX Waiver Programs (such as ACCAP, GLOBAL Options, CCW, etc.) ARE subject to recovery. The only current exceptions are HCEP and JACC, which are State- funded programs through other State Departments.
• The client’s primary residence, while exempt for eligibility purposes, is considered part of the client’s estate, and therefore is subject to recovery. It is also important to reinforce with applicants, clients and families that any interest that the client had in any property at the time of death will be considered part of the decedent’s estate, and therefore subject to recovery.
• Annuities are required to be disclosed upon application and recertification for Medicaid. For those annuities which are determined not to be subject to asset liquidation, the State of New Jersey must be named as the remainder beneficiary in the first/primary position for the total amount of medical assistance paid on their behalf. In the case where there is a community spouse and/or a minor or disabled child, the State must be named in the second/secondary position as remainder beneficiary. The State or its eligibility agencies shall require verification of the State being irrevocably named as the remainder beneficiary in the correct position and the State needs to be notified of any contractual changes in the annuities’ income or principal. The remaining benefits of an annuity not subject to liquidation prior to eligibility determination are payable to the State (primary or secondary position) regardless of the age of provided services
• “Estate” for Medicaid recovery purposes is now defined by law to include any real or personal property and any assets in which the client had any legal title or interest at the time of death. Included for your reference is a copy of the pertinent regulation. Please note that the definition of “estate” appears at N.J.A.C. 10:49-14.1(e)2 and is quite comprehensive; also note that the term “other arrangements” used in that subsection includes testamentary trusts and annuities.
• Please remember that in the process of estate recovery, DMAHS will file a lien against the estate to recover all payments for services received on or after age 55 (except for annuities).
• No distribution can be made to heirs or creditors from the estate other than for reasonable funeral expenses, costs associated with the administration of the estate, debts owed to the Office of the Public Guardian for Elderly Adults, and claims with preference under federal or state law (e.g., IRS liens) that may be superior to Medicaid’s (e.g. filed prior in time) without first satisfying the Medicaid program’s lien.
And what’s so reprehensible about ObamaCare is that they force you into Medicaid. No options if that’s how the eligibility plays out; if you want to risk a piece-of-crap policy so you can pass on your house to your kids, you can’t do that. Yet another path to downward mobility! Of course, this only applies to the poorest, ObamaCare being ObamaCare.
NOTE Yet one more reason why single payer Medicare for All is the only fair solution.
Although this PDF is from NJ, it reads to me like they are passing along a Federal policy. Key words to research are “Medicaid estate recovery” +your favorite of the 50 states.
Aletho News recommends perusing the comment thread at the source for more information.
October 5, 2013
Posted by aletho |
Civil Liberties, Deception, Economics, Progressive Hypocrite, Timeless or most popular | Medicaid, Medicaid estate recovery, Obamacare, Patient Protection and Affordable Care Act, United States |
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The Ecuadorian National Assembly voted Thursday to permit the drilling for petroleum in two sections of the Yasuní National Park in the country’s eastern Amazon basin. The decision comes just seven weeks after President Rafael Correa announced the failure of the Yasuní-ITT initiative, a project that sought to indefinitely prohibit oil exploration in the Yasuní in exchange for international donations equal to half of the reserve’s projected income.
The approved measure, which will allow oil exploration in the park’s 31 and 49 blocks, was passed with the votes of 108 of the assembly’s 133 members. The assembly cited “national interest” as justification for its decision. Ecuador’s constitution forbids “activities for the extraction of nonrenewable natural resources” except in the case of national interest as determined by the National Assembly.
President Correa says the exploration will only affect .01% of the park. Additionally, the legislation promises the protection of indigenous communities that live in the affected areas and excludes extractive activity from the Yasuní’s “untouchable zone”, the largest section of the park, which is to be preserved in its natural state as a wildlife sanctuary. The project will be run by state-run oil company Petroamazonas.
Fifty days ago, Correa requested authorisation to begin oil exploration within the park, declared a global biosphere reserve by UNESCO in 1989. The move has intensified national debate over drilling in the Yasuní and saw the president embark on a countrywide tour to convince oppositional groups of the economic and social need to drill in the wake of the Yasuní-ITT initiative’s failure.
In support of the president’s new initiative were 30 mayors from towns in Ecuador’s Amazon basin who travelled to Quito last month to express their support for the measure. Additionally, just last Friday 180 mayors signed a statement in support of the move to drill in the Yasuní.
However, opposition from ecological and indigenous rights groups remains high. On 28th August, police were accused of firing rubber bullets against protestors who had gathered in response to Correa’s initial remarks on opening the Yasuní up to exploration.
In the past month, the opposition has called for a national referendum, a request denied by the Constitutional Court.
Humberto Cholango, head of the Confederation of Indigenous Nationalities of Ecuador, told Ecuadorian newspaper El Universo that he was confused by the court’s decision. “There was a referendum over bullfighting in 2011, so why would you not consult the people on this issue of such importance, which threatens the lives of indigenous peoples as well as the reserve’s enormous biodiversity.”
Despite the rejection, the opposition pushed until the last moments before the vote.
Three community leaders from Ecuador’s Amazon region were invited to speak before the assembly on the final day of the debate. The first two spoke in favour of the government’s proposal, citing a need for economic development and a belief that the government would do its best to protect the local environment and communities.
The third speaker, a Guaraní woman named Alicia Cawiya, steered away from her prepared speech and delivered an emotional plea in an effort to change the minds of those about to vote.
“All we want is that you respect our territory, which we have preserved and cared for,” pleaded Alicia. “Leave us to live how we want. This is our only proposal.”
October 4, 2013
Posted by aletho |
Economics, Environmentalism | Amazon rainforest, Ecuador, Rafael Correa, Yasuní-ITT Initiative, Yasuni National Park |
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By Margaret Flowers and Kevin Zeese | Truthout | October 2, 2013
This week, President Obama will attend the Asia-Pacific Economic Coordination (APEC) meeting in Bali, Indonesia, where he is expected to announce his goal of having the Trans-Pacific Partnership (TPP) signed into law by the end of 2013. Obama will host a meeting of the leaders of the TPP nations during the APEC conference.
The Obama administration has been negotiating the TPP in secret for more than three years. Unlike past trade agreements, the text of the TPP is classified, and members of Congress have restricted access to it. If they do read the text, they are not allowed to copy it or discuss any specifics of it. However, more than 600 corporate advisers have direct access to the text on their computers.
The final formal round of negotiations was held in Brunei this August, and since then, there have been informal meetings to try and finalize sections of the agreement. As far as the president is concerned, the TPP is entering the home stretch. All he needs now is for Congress to vote to grant him fast track, also known as trade promotion authority, and it’s a done deal. The facts show that the president may be deluding himself or trying to fool everyone else.
This is because the TPP goes far beyond a trade deal. Only five of the 29 chapters contain provisions related to trade. The other chapters consist of provisions related to patent protections, investor state rights and finance deregulation, among others. The TPP is a backdoor corporate power grab to advance the stalled WTO agenda. Or as Sachie Mizohata writes in Asia Times, “The TPP is a Trojan horse, branded as a ‘free trade’ agreement, but having nothing to do with fair and equitable treatment. In reality, it is precisely ‘a wish list of the 1% – a worldwide corporate power’.”
We expect the president to return from Bali with increased enthusiasm to push for fast track. To accompany this push will be the usual misinformation campaign coming from supporters of the TPP. To prepare the public for the expected propaganda, we will look at what is being said and provide facts to counter their arguments.
As far as some members of Congress are concerned, as well as hundreds of civil society groups and a growing number of US residents, fast track and the TPP are not going to slide through Congress smoothly. Opposition to the TPP is growing as more people come to understand that the TPP is a rigged corporate trade deal and not fair trade that respects the needs of people and the planet.
What’s Wrong with Fast Track?
For most of the past 200 years, Congress negotiated trade policy and wrote the laws to oversee trade, as required in the Constitution’s Commerce Clause. This power was first transferred to the executive office when Nixon was granted fast track in 1974 as part of his consolidation of presidential power. Fast track expired in 2007. Only 16 trade agreements have been passed using fast track, and some of these were the most unpopular and controversial pacts such as the WTO and NAFTA, signed by President Clinton.
The previous fast track legislation required the president to submit both the trade agreement and implementing legislation to Congress for approval. According to a 2011 report by the Congressional Research Services, “The fast-track authority provides that Congress will consider trade agreement implementing bills within mandatory deadlines, with a limitation on debate and without amendment. . .” In other words, fast track permits the president to negotiate an entire trade agreement over many years and then present it to Congress for an up or down vote within a short time period (60 to 90 days), with debate limited to 20 hours and no amendments.
Fast track severely undermines the transparent and democratic process required to ensure that the full implications of the agreement are understood and are acceptable. Trade agreements require that laws, even down to the local level, be changed to be in compliance with provisions in them. For example, when the WTO was passed, which was fast tracked despite having been negotiated for over 10 years and containing thousands of pages, most members of Congress did not read or understand it.
Great Recession Connection
One of the requirements of the WTO was that Glass-Steagall had to be repealed. This removed the wall that protected traditional banking from risky investments and is partially responsible for the current economic crisis, which started in 2008. Similarly, NAFTA was 1,700 pages, including annexes and footnotes. NAFTA involved only three countries, the TPP includes 12. Congress cannot digest all of this information and consider its implications in such a short time.
Passage of the Trans-Pacific Partnership and its sister, the Trans-Atlantic Trade and Investment Partnership (known as TAFTA), for which negotiations began in July, will require fast track to become law. Supporters of the TPP such as the US Chamber of Commerce and, of course, the office of the US Trade Representative (USTR) are promoting fast rack with flimsy and false arguments. Basically, they boil down to these points:
1. The president should have fast track so he can negotiate job-creating agreements and boost trade and the economy.
2. It’s OK to give the president fast track because Congress is going to include negotiating objectives within the fast track law, and Congress must vote on the agreement.
3. The president should have fast track because other presidents have had it.
So, let’s examine the facts. First, despite promises of American jobs, past free trade agreements have actually been huge job losers. NAFTA is responsible for the loss of nearly 700,000 jobs. The recent Korea Free Trade Agreement was promised to bring 70,000 new jobs, but lost 40,000 jobs in the first year alone instead, and Public Citizen estimates that nearly 160,000 jobs will be lost over the first seven years. In total, US free trade agreements over the past two decades have netted a loss of nearly 5 million American jobs.
In addition to the loss of jobs, free trade agreements have contributed to the stagnation of wages in the United States. American workers cannot compete with extremely low wages in countries like China, Malaysia and Vietnam. A recent study predicts that the TPP will cause wages for 90 percent of American workers to decrease while wealth of the top 1% will soar. How can US workers compete with workers in Malaysia, where the minimum wage is $1.24; Peru, where it is $1.37; or Vietnam, where it is 30 cents? The TPP will increase the race to the bottom that will further impoverish US workers.
The same study predicts that the TPP will only boost US Gross Domestic Product (GDP) by 0.1 percent. In fact, free trade agreements do not seem to work at all when it comes to expanding US exports. According to the data, overall the US trade deficit has increased by 440 percent with countries with which we have free trade agreements and has declined by 7 percent with countries with which we do not have agreements. If we look at the outcome of a “21st century trade agreement,” which is how the office of the USTR describes the TPP, like the Korea Free Trade Agreement, we find that “average monthly exports to Korea since the FTA have sunk 11 percent below the average monthly level before the FTA.” TAFTA is expected to increase US GDP by a mere 0.2 to 0.4 percent, which Public Citizen reports, is “a smaller contribution to GDP than was delivered by the latest version of the iPhone.”
Second, let’s look at Congressional oversight under fast track. Carol Guthrie from the office of the US Trade Representative recently wrote an email response to the producer of a video interview of Margaret Flowers in which she said:
“Checking in on your story on TPP – afraid there seems to be some misunderstanding about trade promotion authority, sometimes known as ‘fast track.’ Under such a law, which lays out just how the administration should consult with Congress on trade agreements, and in which Congress sets out negotiating objectives for the United States, there are indeed hearings and an up or down vote in Congress before the agreement can be implemented in law and enter into force. There are rules in TPA about whether or not the implementing legislation for an agreement can be amended, but it does not allow an agreement to become law or enter into force without Congressional approval. Glad to share more information as it’s helpful to you.”
Flowers wrote back immediately and asked if there was fast track legislation available for review; whether there would be full hearings on the content of the TPP and its implications; and whether amendments would be allowed. That was on September 20 and no response has been received.
In the past, fast track has limited hearings and debate and has not allowed amendments. There have also been negotiating objectives in the past, and these have often been ignored. For example, labor rights were required under the WTO, but still were not included. Even when provisions such as worker protections are included in trade agreements, they are not enforced, as is recently demonstrated in Colombia, where deaths of worker advocates have increased and there are massive strikes and protests since passage of the Colombian FTA.
In the case of the TPP, negotiating objectives enacted now, when the negotiation of the entire agreement is concluding, will have absolutely no effect. The negotiating objectives are merely window dressing designed to confuse labor unions, environmental groups and others into supporting the TPP, when in reality, protections will not be enforced.
Members of Congress are overruled by the agreements when they do try to change the provisions. Ray Rogers writes that trade agreements “have nullified the efforts of political leaders like Senator Tom Harkin (D-Iowa), who introduced legislation in 1994 to ban the imports of products produced by brutal child labor. President Clinton’s US Trade Representative informed him that his bill would violate the General Agreement on Tariffs and Trade (GATT), which the United States is obliged to obey.” Thus, trade agreements tie the hands of Congress and undermine US sovereignty.
What is Oversight?
The definition of Congressional oversight by the office of the US Trade Representative falls far short of the degree of oversight necessary if Congress and the public are to have the ability to fully understand what is in the secret TPP and what the economic impact will be on the United States and nations around the world, as well as how it will impact protection of workers, consumers and the environment. What we expect to see under the fast track process are limited hearings in which supporters of the TPP praise it and Congress members are not able to fully question or amend it. How could it be anything else when members of Congress will not even have time to read the agreements?
Lastly, the idea that other presidents had fast track, so President Obama should too, is embarrassing in its lack of logic. Most presidents have not had fast track. And the agreements passed by fast track have caused the loss of US jobs, lowered wages and created higher trade deficits. Congress must serve its Constitutional function as a check and balance to the power of the President and the branch of government responsible for regulating trade and passing legislation. Fast track undermines the constitutional power of Congress and creates an imperial presidency.
Fortunately, the process to grant fast track trade authority this time around has slowed significantly. In February, 2012, then US Trade Representative Ron Kirk, in his testimony before the House Ways and Means Committee, included a request for fast track by the end of 2012 to complete TPP negotiations. Senators Max Baucus and Orrin Hatch urged the White House to request fast track trade authority last April. They expected to have a fast track bill passed in Congress by last June.
President Obama waited until August of this year to formally request fast track and, as of the writing of this article, no fast track bill has been introduced in Congress. A recent report in Politico stated, “Efforts by leaders of Senate Finance and House Ways and Means to craft a bipartisan TPA [Trade Promotion Authority] bill have taken longer than expected, prompting speculation the two panels may not be able to produce a package.”
Bipartisan opposition to fast track has already appeared in Congress. Alan Grayson (D-Florida) voiced opposition and Rosa DeLauro (D-Connecticut) is gathering signatures from other members on a letter to the president opposing fast track. Michelle Bachman (R-Minnesota) and Walter Jones (R-North Carolina) have a similar letter to the president. Many groups are lobbying against fast track, including Public Citizen, environmental groups and labor. We are organizing Fair Trade Brigades to track congressional support for fast track through our Flush the TPP campaign. Everyone is encouraged to participate in that effort.
Don’t Fast Track this Train Wreck
As Mizohata wrote in Asia Times, the TPP is Trojan horse that is not about trade. We know this because only five of its 29 chapters are about trade. Ben Beachy reports that “of the 11 countries negotiating the TPP with the United States, six already have FTAs with the US.”
So, if we already have trade agreements with these countries, and we know that trade deals don’t reduce our trade deficit, what is the reason for the TPP? It looks like a backdoor to the neoliberal economic agenda that has been stalled under the WTO since the Battle of Seattle in 1999. The tremendous secrecy surrounding the TPP is because the policies that are being pushed through are both harmful to – and unpopular with – the American public. Fast track is necessary to protect this secrecy because the TPP would not survive the light of day.
Senator Elizabeth Warren (D-Massachusetts) has been one of the most outspoken members of Congress on the need for transparency. She wrote a letter to the president requesting that the text be made available to the public. Even members of Congress have restricted access to the text. Zach Carter writes that “Some [members of Congress] have said they were insulted by the complex administrative procedures the office of the U. Trade Representative, or USTR, imposed to actually access the texts – barriers not imposed on unelected corporate advisers.”
And, it is not only texts, when Rep. Darrell Issa (R-California) sought to observe negotiations being held near his California Congressional District, the US Trade Representative would not allow it. While corporations have been allowed to participate throughout the process, a member of Congress who serves on committees dealing with energy, small businesses, foreign policy and government oversight – which would all be impacted by the TPP – was blocked from merely observing. As Rep. Issa wrote: “Congress has a constitutional duty to oversee trade negotiations and not simply act as a rubber stamp to deals about which they were kept in the dark. While I had hoped the TPP would permit me to observe this round of the negotiation process firsthand, our efforts to open TPP negotiations up to transparency will continue.”
Looking at the office of the USTR website, one would think that the process of negotiating the TPP has been open and broad, rather than closed and exclusive as it has been. Negotiators write that they are reaching out to a “broad cross-section of stakeholders” and they want to “set the stage for a deeper level of engagement with these and other stakeholders in the weeks and months ahead.” But these are empty promises and misleading statements as both members of Congress and stakeholders know.
The actions of the USTR are designed to give the illusion of engagement while the needs and interests of those affected by the TPP will be ignored. One of the authors of this piece, Kevin Zeese, participated in a stakeholder briefing last September. He found that questions from the stakeholders in attendance were not answered by the representatives and the entire event felt like a charade.
That is why last week, we decided to expose the secret TPP and make the public’s demands for democracy and transparency more visible through spectacle protests. On Monday, September 23, eight of us wore work coveralls and hard hats and climbed scaffolding next to the USTR building. We draped the outside of their building with four large banners calling for democracy and transparency and calling the TPP what it is in reality, a global corporate coup against people and the planet. Our effort to raise awareness was successful as the Washington Post reported on the protest, calling it “one of the best ever.” The next day we spread the news by conducting a march featuring a 32-foot fast track train, going back to the US Trade Rep. office, then to the World Bank, White House, Chamber of Commerce, business district, Pennsylvania Ave. and Congress.
It is up to the public and their representatives in Congress to demand that the full text of the TPP be released and that there be a democratic process of review. We must fully understand the effects of the TPP on employment, wages, the environment, Internet freedom, public health and safety, and more. Jim Hightower outlines some of the major concerns in his newsletter, The Lowdown.
We cannot blindly accept the information coming from the USTR, President Obama and Big Business supporters of the TPP. They have misled the public before, and they are doing it again to advance an agenda that puts profits before the needs of people and protection of the planet. The TPP will force smaller countries like Vietnam to change their entire economy by eliminating their publicly supported enterprises and services and opening them up to the private sector and foreign investors. This will increase poverty and suffering while lining the pockets of the wealthy.
Countries negotiating with the United States need to realize that if the TPP becomes law, they will be under the thumb of Monsanto, JPMorgan, Bank of America, Wal-Mart and other US-based transnational corporations. Rodrigo Contreras, Chile’s lead TPP negotiator recently quit to warn people of the dangers of the TPP – highlighting how big financial institutions will dominate their governments and how the TPP “will become a threat for our countries: It will restrict our development options in health and education, in biological and cultural diversity, and in the design of public policies and the transformation of our economies. It will also generate pressures from increasingly active social movements, who are not willing to grant a pass to governments that accept an outcome of the TPP negotiations that limits possibilities to increase the prosperity and well-being of our countries.” The TPP will destroy the sovereignty of the nations who agree to its terms.
The destruction of sovereignty includes the United States. One of the most egregious outcomes of the TPP, if it passes, is the way it will undermine our national sovereignty as well as the ability of state and local governments to pass laws. All laws will have to be brought into compliance with the TPP. This means that public institutions like schools and hospitals can no longer give preference to buying local products, and consumers may be barred from knowing whether foods contain GMOs. It means the “Buy America” laws will be illegal, so Americans will be forced to spend their money on foreign products that create a massive trade deficit.
And if we pass laws that interfere with expected corporate profits, those laws can be challenged in a special court, an international trade tribunal that operates outside of our legal system and that is staffed largely by corporate lawyers on leave from their corporate jobs. There will be no appeal to traditional courts from these rigged trade tribunals.
The TPP Unites Us and We can Stop It
The TPP will affect everything we care about. It is a cause that unites us, and if we work together to stop it, we will have won against the behemoth of transnational corporate power. A broad range of groups across the political spectrum are involved in stopping the TPP from becoming law. This includes Internet freedom, anti-GMO, health care, labor, faith, immigrant rights and environmental groups, among others.
We can stop the TPP. Indeed, 14 trade agreements have been prevented in the last dozen years. As more people know about it, the less popular it will become among politicians who will be held accountable for the TPP’s failures. It is up to the public to demand that our representatives put the interests of their constituents before the profits of their corporate campaign financiers. They must know that they will be held accountable for the detrimental consequences that are being predicted.
Public awareness and pressure are already having an effect. The media is starting to cover the TPP more, and the process of granting fast track has been slowed. We can expect more propaganda to appear as the TPP falters and so we must prepare ourselves to repel it with the truth. And we must remember that no matter what we are told about it, no matter what protections we are told are included in it, we must have access to the text before it is signed and we must review and fully understand what its impacts will be.
Other countries are taking steps to demand transparency and democracy. Recently, the Parliament of Peru passed a resolution “requesting that the government open a ‘public, political, and technical debate’ on the binding rules being negotiated in the TPP.” Protests in Japan have been widespread. The more we are visible in our concerns about the TPP, the more people in other nations will be emboldened to stand up to US imperialism and domination.
It is time to end the era of rigged corporate trade and begin fair trade that respects all people and the planet, and that is developed in an open and transparent manner. Join the Fair Trade Brigade either in Congress or where you live. Tell your member of Congress to vote “no” on fast track and pass a resolution locally that declares your community to be a TPP-free zone. Visit FlushtheTPP.org for more information on what you can do.
For more on the TPP visit here and here.
Other articles on the TPP by Margaret Flowers and Kevin Zeese:
TransPacific Partnership Will Undermine Democracy, Empower Transnational Corporations Protesters Take Over US Trade Rep Building, Expose Secret NegotiationsWhy It’s Time to Revolt Against the Worst “Trade Agreement” in History
October 3, 2013
Posted by aletho |
Deception, Economics, Progressive Hypocrite | Fast Track, TPP, Trans-Pacific Strategic Economic Partnership, World Trade Organization |
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The government of the “world’s only superpower,” the “exceptional,” the “indispensable” country, claims to know what is best for Syria, Iraq, Afghanistan, Libya, Yemen, Pakistan, Somalia, Mali, Russia, Venezuela, Bolivia, Ecuador, Brazil, China, indeed for the entire world. However, the “indispensable” country cannot even govern itself, much less the world over which the “superpower” desires hegemony. The government of the “world’s only superpower” has shut itself down.
The government has shut itself down, because it cannot deal with the budget deficit and mounting public debt caused by twelve years of wars, by financial deregulation that allows “banks too big to fail” to loot the taxpayers, and by the loss of jobs, GDP, and tax base that jobs offshoring forced by Wall Street caused.
The Republicans are using the fight over the limit on new public debt to block Obamacare. The Republicans are right to oppose Obamacare, but they are opposing Obamacare largely for ideological reasons when there are very good sound reasons to oppose Obamacare.
Last February 3, I posted on this website a column, “Obamacare: A Deception,” written by an expert on the subject.
When Republicans for ideological reasons blocked a single-payer health system like the rest of the developed world has and, indeed, even some developing countries have, the Obama regime, needing a victory, went to the insurance companies and told them to come up with a health care plan that the insurance lobby could get passed by Congress. Obamacare was written by the private insurance industry with the goal of raising its profits with 50 million mandated new customers.
Obamacare works for the insurance companies, but not for the uninsured. The cost of using Obamacare is prohibitive for those who most need the health coverage. The cost of the premiums net of the government subsidy is large. It amounts to a substantial pay cut for people struggling to pay their bills. In addition to the premium cost, it is prohibitive for hard pressed Americans to use the policies because of the deductibles and co-pays. For the very poor, who are thrown into Medicaid systems, any assets they might have, such as a home, are subject to confiscation to cover their Medicaid bills. The only people other than the insurance companies who benefit from Obamacare are the down and out who are devoid of all assets.
This might prove to be a growing percentage of Americans. On September 19 the New York Times on the front page of the business section reported what I have reported for years: that real median family incomes in the US are where they were a quarter of a century ago. In other words, in a quarter of a century there has been no income growth for the median American family.
In 2013 payroll employment is below where it was six years ago. During 2013 most of the new jobs, barely sufficient to stay even with population growth and insufficient to recover the job loss from the recession, have been part-time jobs that do not provide any discretionary income with which to drive a consumer economy.
Obamacare has resulted in the health insurance companies, who thought that they would be living in high profits from the mandated health coverage, being outsmarted by employers, who have reduced their full-time workers to part-time in order to avoid Omamacare’s requirement to provide health coverage to those employees who work 30 hours a week or more.
Employers can get away with this, because jobs are hard to find. The lack of employment opportunities results in Americans with engineering degrees working as retail sales clerks and as shelf stockers in Walmart and Home Depot. Despite the abundance of unemployed and under-employed American technical and engineering workers, the large corporations lobby Congress for more H-1B visas to bring in lowly paid foreigners with the argument that there is a shortage of qualified Americans for technical work.
As I have pointed out so many times, if there were a shortage of engineering and technical workers, salaries would be rising, not falling.
For millions of employees, Obamacare means cut hours and less take home pay plus out-of-pocket expenses to purchase an Obamacare health policy. For most people covered by Obamacare, this is a lose-lose situation.
It is also a lose-loss situation for the vast majority of the young. Most young people, unless they have jobs that provide health coverage, do without it, because the chances of the young having heart attacks, cancer, and other serious health problems is low.
Obamacare, however, requires the healthy young to pay premiums for coverage or to pay a penalty to the IRS.
In my day this might not have been a problem. However, today there are few jobs for the young that pay enough to have an independent existence. The monthly payroll jobs reports do not show well-paying jobs. The Labor Department’s projections of future jobs are not jobs that pay well. For the youth, it seems that the penalty is less than the premium, so youthful penalties paid out of waitress and bartender tips will subsidize the unusable Obamacare health policies for the poor adults who are not thrown into Medicaid, which confiscates their assets, if any.
Obamacare benefits only two classes of people. It benefits employers who drop their employees working hours below the hours specified for Obamacare coverage, and it benefits the insurance companies or the IRS who collect the premiums and penalties.
Many of the people who pay the premiums won’t be able to use the policies because of co-pays and deductions.
The very poor with no assets might receive health care if they reside in states that accept the Medicaid provisions of Obamacare.
In 21st century America, the few people who have experienced income gains are the executives and shareholders of firms who offshored their production for US markets, Wall Street which makes bets covered by the Federal Reserve, and the military-security complex which has been enriched by the neoconservatives’ wars.
Every other American has lost.
Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. His latest book The Failure of Laissez-Faire Capitalism. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format.
October 3, 2013
Posted by aletho |
Economics | Obamacare, Patient Protection and Affordable Care Act, PAUL CRAIG ROBERTS, United States |
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