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Oligarchs, Demagogues, and Mass Revolts against Democracy

By James Petras | The People’s Voice | December 28, 2013

In ancient Rome, especially during the late Republic, oligarchs resorted to mob violence to block, intimidate, assassinate or drive from power the dominant faction in the Senate. While neither the ruling or opposing factions represented the interests of the plebeians, wage workers, small farmers or slaves, the use of the ‘mob’ against the elected Senate, the principle of representative government and the republican form of government laid the groundwork for the rise of authoritarian “Caesars” (military rulers) and the transformation of the Roman republic into an imperial state.

Demagogues, in the pay of aspiring emperors, aroused the passions of a motley array of disaffected slum dwellers, loafers and petty thieves (ladrones) with promises, pay-offs and positions in a New Order. Professional mob organizers cultivated their ties with the oligarchs ‘above’ and with professional demonstrators ‘below’. They voiced ‘popular grievances’ and articulated demands questioning the legitimacy of the incumbent rulers, while laying the groundwork for the rule by the few. Usually, when the pay-master oligarchs came to power on a wave of demagogue-led mob violence, they quickly suppressed the demonstrations, paid off the demagogues with patronage jobs in the new regime or resorted to a discrete assassination for ‘street leaders’ unwilling to recognize the new order’. The new rulers purged the old Senators into exile, expulsion and dispossession, rigged new elections and proclaimed themselves ‘saviors of the republic’. They proceeded to drive peasants from their land, renounce social obligations and stop food subsidies for poor urban families and funds for public works.

The use of mob violence and “mass revolts” to serve the interests of oligarchical and imperial powers against democratically-elected governments has been a common strategy in recent times.

Throughout the ages, the choreographed “mass revolt” played many roles: (1) it served to destabilize an electoral regime; (2) it provided a platform for its oligarch funders to depose an incumbent regime; (3) it disguised the fact that the oligarchic opposition had lost democratic elections; (4) it provided a political minority with a ‘fig-leaf of legitimacy’ when it was otherwise incapable of acting within a constitutional framework and (5) it allowed for the illegitimate seizure of power in the name of a pseudo ‘majority’, namely the “crowds in the central plaza”.

Some leftist commentators have argued two contradictory positions: On the one hand, some simply reduce the oligarchy’s power grab to an ‘inter-elite struggle’ which has nothing to do with the ‘interests of the working class’, while others maintain the ‘masses’ in the street are protesting against an “elitist regime”. A few even argue that with popular, democratic demands, these revolts are progressive, should be supported as “terrain for class struggle”. In other words, the ‘left’ should join the uprising and contest the oligarchs for leadership within the stage-managed revolts!

What progressives are unwilling to recognize is that the oligarchs orchestrating the mass revolt are authoritarians who completely reject democratic procedures and electoral processes. Their aim is to establish a ‘junta’, which will eliminate all democratic political and social institutions and freedoms and impose harsher, more repressive and regressive policies and institutions than those they replace. Some leftists support the ‘masses in revolt’ simply because of their ‘militancy’, their numbers and street courage, without examining the underlying leaders, their interests and links to the elite beneficiaries of a ‘regime change’.

All the color-coded “mass revolts” in Eastern Europe and the ex-USSR featured popular leaders who exhorted the masses in the name of ‘independence and democracy’ but were pro-NATO, pro-(Western) imperialists and linked to neo-liberal elites. Upon the fall of communism, the new oligarchs privatized and sold off the most lucrative sectors of the economy throwing millions out of work, dismantled the welfare state and handed over their military bases to NATO for the stationing of foreign troops and the placement of missiles aimed at Russia.

The entire ‘anti-Stalinist’ left in the US and Western Europe, with a few notable exceptions, celebrated these oligarch-controlled revolts in Eastern Europe and some even participated as minor accomplices in the post-revolt neo-liberal regimes. One clear reason for the demise of “Western Marxism” arose from its inability to distinguish a genuine popular democratic revolt from a mass uprising funded and stage-managed by rival oligarchs!

One of the clearest recent examples of a manipulated ‘people’s power’ revolution in the streets to replace an elected representative of one sector of the elite with an even more brutal, authoritarian ‘president’ occurred in early 2001 in the Philippines. The more popular and independent (but notoriously corrupt) President Joseph Estrada, who had challenged sectors of the Philippine elite and current US foreign policy (infuriating Washington by embracing Venezuela’s Hugo Chavez), was replaced through street demonstrations of middle-class matrons with soldiers in civvies by Gloria Makapagal-Arroyo. Mrs. Makapagal-Arroyo, who had close links to the US and the Philippine military, unleashed a horrific wave of brutality dubbed the ‘death-squad democracy’. The overthrow of Estrada was actively supported by the left, including sectors of the revolutionary left, who quickly found themselves the target of an unprecedented campaign of assassinations, disappearances, torture and imprisonment by their newly empowered ‘Madame President’.

Past and Present Mass Revolts Against Democracy: Guatemala, Iran, and Chile

The use of mobs and mass uprisings by oligarchs and empire builders has a long and notorious history. Three of the bloodiest cases, which scarred their societies for decades, took place in Guatemala in 1954, Iran in 1953, and Chile in 1973.

Democratically-elected Jacobo Árbenz was the first Guatemalan President to initiate agrarian reform and legalize trade unions, especially among landless farm workers. Árbenz’s reforms included the expropriation of unused, fallow land owned by the United Fruit Company, a giant US agro-business conglomerate. The CIA used its ties to local oligarchs and right-wing generals and colonels to instigate and finance mass-protests against a phony ‘communist-takeover’ of Guatemala under President Arbenz. The military used the manipulated mob violence and the ‘threat’ of Guatemala becoming a “Soviet satellite”, to stage a bloody coup. The coup leaders received air support from the CIA and slaughtered thousands of Arbenz supporters and turned the countryside into ‘killing fields’. For the next 50 years political parties, trade unions and peasant organizations were banned, an estimated 200,000 Guatemalans were murdered and millions were displaced.

In 1952 Mohammed Mossadegh was elected president of Iran on a moderate nationalist platform, after the overthrow of the brutal monarch. Mossadegh announced the nationalization of the petroleum industry. The CIA, with the collaboration of the local oligarchs, monarchists and demagogues organized ‘anti-communist’ street mobs to stage violent demonstrations providing the pretext for a monarchist- military coup. The CIA-control Iranian generals brought Shah Reza Pahlavi back from Switzerland and for the next 26 years Iran was a monarchist-military dictatorship, whose population was terrorized by the Savak, the murderous secret police.

The US oil companies received the richest oil concessions; the Shah joined Israel and the US in an unholy alliance against progressive nationalist dissidents and worked hand-in-hand to undermine independent Arab states. Tens of thousands of Iranians were killed, tortured and driven into exile. In 1979, a mass popular uprising led by Islamic movements, nationalist and socialist parties and trade unions drove out the Shah-Savak dictatorship. The Islamists installed a radical nationalist clerical regime, which retains power to this day despite decades of a US-CIA-funded destabilization campaign which has funded both terrorist groups and dissident liberal movements.

Chile is the best-known case of CIA-financed mob violence leading to a military coup. In 1970, the democratic socialist Dr. Salvador Allende was elected president of Chile. Despite CIA efforts to buy votes to block Congressional approval of the electoral results and its manipulation of violent demonstrations and an assassination campaign to precipitate a military coup, Allende took office.

During Allende’s tenure as president the CIA financed a variety of “direct actions” –from paying the corrupt leaders of a copper workers union to stage strikes and the truck owners associations to refuse to transport goods to the cities, to manipulating right-wing terrorist groups like the Patria y Libertad (Fatherland and Liberty) in their assassination campaigns. The CIA’s destabilization program was specifically designed to provoke economic instability through artificial shortages and rationing, in order to incite middle class discontent. This was made notorious by the street demonstrations of pot-banging housewives. The CIA sought to incite a military coup through economic chaos. Thousands of truck owners were paid not to drive their trucks leading to shortages in the cities, while right-wing terrorists blew up power stations plunging neighborhoods into darkness and shop owners who refused to join the ‘strike’ against Allende were vandalized. On September 11, 1973, to the chants of ‘Jakarta’ (in celebration of a 1964 CIA coup in Indonesia), a junta of US-backed Chilean generals grabbed power from an elected government. Tens of thousands of activists and government supporters were arrested, tortured, forced into exile or killed. The dictatorship denationalized and privatized its mining, banking and manufacturing sectors, following the free market dictates of Milton Friedman-trained economists (the so-call “Chicago Boys”). The dictatorship overturned 40 years of welfare, labor and land-reform legislation which had made Chile the most socially advanced country in Latin America. With the generals in power, Chile became the ‘neo-liberal model’ for Latin America. Mob violence and the so-called “middle class revolt”, led to the consolidation of oligarchic and imperial rule and a 17-year reign of terror under General Augusto Pinochet dictatorship. The whole society was brutalized and with the return of electoral politics, even former ‘leftist’ parties retained the dictatorship’s neo-liberal economic policies, its authoritarian constitution and the military high command. The ‘revolt of the middle class’ in Chile resulted in the greatest concentration of wealth in the hands of the oligarchs in Latin America to this day!

The Contemporary Use and Abuse of “Mass Revolts”: Egypt, Ukraine, Venezuela, Thailand, and Argentina

In recent years “mass revolt” has become the instrument of choice when oligarchs, generals and other empire builders seek ‘regime change’. By enlisting an assortment of nationalist demagogues and imperial-funded NGO ‘leaders’, they set the conditions for the overthrow of democratically elected governments and stage-manage the installment of their own “free market” regimes with dubious “democratic” credentials.

Not all the elected regimes under siege are progressive. Many ‘democracies’, like the Ukraine, are ruled by one set of oligarchs. In the Ukraine, the elite supporting President Viktor Yanukovich, decided that entering into a deep client-state relationship with the European Union was not in their interests, and sought to diversify their international trade partners while maintaining lucrative ties with Russia. Their opponents, who are currently behind the street demonstrations in Kiev, advocate a client relationship with the EU, stationing of NATO troops, and cutting ties with Russia. In Thailand, the democratically-elected Prime Minister, Yingluck Shinawatra, represents a section of the economic elite with ties and support in the rural areas, especially the North-East, as well as deep trade relations with China. The opponents are urban-based, closer to the military-monarchists and favor a straight neo-liberal agenda linked to the US against the rural patronage-populist agenda of Ms. Shinawatra.

Egypt’s democratically-elected Mohamed Morsi government pursued a moderate Islamist policy with some constraints on the military and a loosening of ties with Israel in support of the Palestinians in Gaza. In terms of the IMF, Morsi sought compromise. The Morsi regime was in flux when it was overthrown: not Islamist nor secular, not pro-worker but also not pro-military. Despite all of its different pressure groups and contradictions, the Morsi regime permitted labor strikes, demonstrations, opposition parties, freedom of the press and assembly. All of these democratic freedoms have disappeared after waves of ‘mass street revolts’, choreographed by the military, set the conditions for the generals to take power and establish their brutal dictatorship – jailing and torturing tens of thousands and outlawing all opposition parties.

Mass demonstrations and demagogue-led direct actions also actively target democratically elected progressive governments, like Venezuela and Argentina, in addition to the actions against conservative democracies cited above. Venezuela, under Presidents Hugo Chavez and Vicente Maduro advances an anti-imperialist, pro-socialist program. ‘Mob revolts’ are combined with waves of assassinations, sabotage of public utilities, artificial shortages of essential commodities, vicious media slander and opposition election campaigns funded from the outside. In 2002, Washington teamed up with its collaborator politicians, Miami and Caracas-based oligarchs and local armed gangs, to mount a “protest movement” as the pretext for a planned business-military coup. The generals and members of the elite seized power and deposed and arrested the democratically-elected President Chavez. All avenues of democratic expression and representation were closed and the constitution annulled. In response to the kidnapping of ‘their president’, over a million Venezuelans spontaneously mobilized and marched upon the Presidential palace to demand the restoration of democracy and Hugo Chavez to the presidency. Backed by the large pro-democracy and pro-constitution sectors of the Venezuelan armed forces, the mass protests led to the coup’s defeat and the return of Chavez and democracy. All democratic governments facing manipulated imperial-oligarchic financed mob revolts should study the example of Venezuela’s defeat of the US-oligarch-generals’ coup. The best defense for democracy is found in the organization, mobilization and political education of the electoral majority. It is not enough to participate in free elections; an educated and politicized majority must also know how to defend their democracy in the streets as well as at the ballot box.

The lessons of the 2002 coup-debacle were very slowly absorbed by the Venezuelan oligarchy and their US patrons who continued to destabilize the economy in an attempt to undermine democracy and seize power. Between December 2002 and February 2003, corrupt senior oil executives of the nominally ‘public’ oil company PDVSA (Petróleos de Venezuela) organized a ‘bosses’ lockout stopping production, export and local distribution of oil and refined petroleum products. Corrupt trade union officials, linked to the US National Endowment for Democracy, mobilized oil workers and other employees to support the lock-out, in their attempt to paralyze the economy. The government responded by mobilizing the other half of the oil workers who, together with a significant minority of middle management, engineers and technologists, called on the entire Venezuelan working class to take the oil fields and installations from the ‘bosses’. To counter the acute shortage of gasoline, President Chavez secured supplies from neighboring countries and overseas allies. The lockout was defeated. Several thousand supporters of the executive power grab were fired and replaced by pro-democracy managers and workers.

Having failed to overthrow the democratic government via “mass revolts”, the oligarchs turned toward a plebiscite on Chavez’ rule and later called for a nation-wide electoral boycott, both of which were defeated. These defeats served to strengthen Venezuela’s democratic institutions and decreased the presence of opposition legislators in the Congress. The repeated failures of the elite to grab power led to a new multi-pronged strategy using: (1) US-funded NGO’s to exploit local grievances and mobilize residents around community issues; (2) clandestine thugs to sabotage utilities, especially power, assassinate peasant recipients of land reform titles, as well as prominent officials and activists; (3) mass electoral campaign marches, and (4) economic destabilization via financial speculation, illegal foreign exchange trading, price gouging and hoarding of basic consumer commodities. The purpose of these measures is to incite mass discontent, using their control of the mass media to provoke another ‘mass revolt’ to set the stage for another US-backed ‘power grab’. Violent street protests by middle class students from the elite Central University were organized by oligarch-financed demagogues. ‘Demonstrations’ included sectors of the middle class and urban poor angered by the artificial shortages and power outages. The sources of popular discontent were rapidly and effectively addressed at the top by energetic government measures: business owners engaged in hoarding and price gouging were jailed; prices of essential staples were reduced; hoarded goods were seized from warehouses and distributed to the poor; the import of essential goods was increased and saboteurs were pursued. The Government’s effective intervention resonated with the mass of the working class, the lower-middle class and the rural and urban poor and restored their support. Government supporters took to the streets and lined up at the ballot box to defeat the campaign of destabilization. The government won a resounding electoral mandate allowing it to move decisively against the oligarchs and their backers in Washington.

The Venezuelan experience shows how energetic government counter-measures can restore support and deepen progressive social changes for the majority. This is because forceful progressive government intervention against anti-democratic oligarchs, combined with the organization, political education and mobilization of the majority of voters can decisively defeat these stage-managed mass revolts.

Argentina is an example of a weakened democratic regime trying to straddle the fence between the oligarchs and the workers, between the combined force of the agro-business and mining elites and working and middle class constituencies dependent on social policies. The elected-Kirchner-Fernandez government has faced “mass revolts” in the a series of street demonstrations whipped up by conservative agricultural exporters over taxes; the Buenos Aires upper-middle class angered at ‘crime, disorder and insecurity’, a nationwide strike by police officials over ‘salaries’ who ‘looked the other way’ while gangs of ‘lumpen’ street thugs pillaged and destroyed stores. Taken altogether, these waves of mob action in Argentina appear to be part of a politically-directed destabilization campaign by the authoritarian Right who have instigated or, at least, exploited these events. Apart from calling on the military to restore order and conceding to the ‘salary’ demands of the striking police, the Fernandez government has been unable or unwilling to mobilize the democratic electorate in defense of democracy. The democratic regime remains in power but it is under siege and vulnerable to attack by domestic and imperial opponents.

Conclusion

Mass revolts are two-edged swords: they can be a positive force when they occur against military dictatorships like Pinochet or Mubarak, against authoritarian absolutist monarchies like Saudi Arabia, a colonial-racist state like Israel, and imperial occupations like against the US in Afghanistan. But they have to be directed and controlled by popular local leaders seeking to restore democratic majority rule.

History, from ancient times to the present, teaches us that not all ‘mass revolts’ achieve, or are even motivated by, democratic objectives. Many have served oligarchs seeking to overthrow democratic governments, totalitarian leaders seeking to install fascist and pro-imperial regimes, demagogues and authoritarians seeking to weaken shaky democratic regimes and militarists seeking to start wars for imperial ambitions.

Today, “mass revolts” against democracy have become standard operational procedure for Western European and US rulers who seek to circumvent democratic procedures and install pro-imperial clients. The practice of democracy is denigrated while the mob is extolled in the imperial Western media. This is why armed Islamist terrorists and mercenaries are called “rebels” in Syria and the mobs in the streets of Kiev (Ukraine) attempting to forcibly depose a democratically-elected government are labeled “pro-Western democrats”.

The ideology informing the “mass revolts” varies from “anti-communist” and “anti-authoritarian” in democratic Venezuela, to “pro-democracy” in Libya (even as tribal bands and mercenaries slaughter whole communities), Egypt and the Ukraine.

Imperial strategists have systematized, codified and made operational “mass revolts” in favor of oligarchic rule. International experts, consultants, demagogues and NGO officials have carved out lucrative careers as they travel to ‘hot spots’ and organize ‘mass revolts’ dragging the target countries into deeper ‘colonization’ via European or US-centered ‘integration’. Most local leaders and demagogues accept the double agenda: ‘protest today and submit to new masters tomorrow’. The masses in the street are fooled and then sacrificed. They believe in a ‘New Dawn’ of Western consumerism, higher paid jobs and greater personal freedom … only to be disillusioned when their new rulers fill the jails with opponents and many former protestors, raise prices, cut salaries, privatize state companies, sell off the most lucrative firms to foreigners and double the unemployment rate.

When the oligarchs ‘stage-manage’ mass revolts and takeover the regime, the big losers include the democratic electorate and most of the protestors. Leftists and progressives, in the West or in exile, who had mindlessly supported the ‘mass revolts’ will publish their scholarly essays on ‘the revolution (sic) betrayed” without admitting to their own betrayal of democratic principles.

If and when the Ukraine enters into the European Union, the exuberant street demonstrators will join the millions of jobless workers in Greece, Portugal, and Spain, as well as millions of pensioners brutalized by “austerity programs” imposed by their new rulers, the ‘Troika’ in Brussels. If these former demonstrators take to the streets once more, in disillusionment at their leaders’ “betrayal”, they can enjoy their ‘victory’ under the batons of “NATO and European Union-trained police” while the Western mass media will have moved elsewhere in support of ‘democracy’.

December 28, 2013 Posted by | Deception, Economics | , , , , , | Leave a comment

Citizen K in the USA

By William Manson | Dissident Voice | December 27, 2013 

In his novel The Trial, Franz Kafka conjured up the nightmarish, surreal yet strangely familiar world of an ordinary person trapped in a web of bewildering governmental repressions. Inexplicably, the eponymous protagonist “Joseph K” suddenly finds himself under relentless investigation—and is then abruptly arrested. Throughout his ordeal, the charges will remain undisclosed. (“Is it political?” gasps Jeanne Moreau, in Orson Welles’ film version; or, as Orwell’s Winston Smith would say, “is it a thought-crime?”) “Free” from incarceration while he awaits trial, Joseph travels through a labyrinth of impersonal offices, baffling court procedures, and inscrutable explanations–only to find himself, once again, back at the beginning of his quest for answers.

The sadistic travesty of justice perpetrated at Guantanamo immediately comes to mind. But what about conditions here in the “Homeland”? Trapped in endless litigation–or in the clutches of creditors or foreclosers—how many millions of U.S. citizens also feel like Joseph K? At one time or another, highly complicated legal quandaries and arcane bureaucratic tangles plague most of us. Lately, however, we’ve been inclined to worry more about our Internet communications: are they being surreptitiously intercepted and stored permanently (PRISM)? In order to be periodically retrieved, scrutinized and “analyzed”? If so, why?

The NSA Director, appearing on TV’s Sixty Minutes, hastened to reassure all (mere) citizens that–despite its mega-billion-dollar budget and ongoing expansion (the giant Utah data-storage complex)–the NSA is currently only actively focusing on less than “60 U.S. persons.” Was Gen. Keith Alexander telling “the whole truth” (to use a quaint phrase)? Or was he giving us, as did James Clapper (DNI) in his unsworn congressional testimony, the “least untruthful” answers he felt obliged to offer?

Therefore, our average Joseph K today is just a tiny bit worried that most (if not all) of his communications are being permanently stored, and subject at any future time to sophisticated “analysis”—under whatever rationale meddlesome technocrats may come up with. If not by the neighborly “analysts” at the NSA, then what about the other dozen-or-so “intelligence” agencies? What mischief are they up to? Joseph, who finds everyday life complicated enough, also finds himself wondering about all those marketing “research” firms, think-tank contractors, credit bureaus, and so on. How are they “mining” and storing his personal data? He doesn’t know.

But enough of that—Joseph K has enough troubles without succumbing to an obsessive paranoia! He’s even tempted to get rid of the Internet all together: his “service” stinks and he’s always hated computers. But wait! Our Joseph K has just been told—by some faceless bureaucrat—that he must quickly go the website “Healthcare.gov” and register to shop for (mandatory) private health insurance. Again, Joseph finds himself perplexed: frankly, he loathes hospitals and drug companies—and has managed quite well without them. Moreover—or so Joseph insists–if he finds himself suffering from terminal cancer, he may choose to die—rather than subject himself to dubious, degrading (and still-expensive) “procedures.” (And Joseph K is also aware that preventable medical errors are, by some estimates, the “third leading cause of death” in the U.S. today.) Joseph, you see, is one of those old-fashioned curmudgeons, the type that once embraced a radical-populism and hated Big Business and Big Government with equal fervor. He even thinks (can you believe it?) that the entire insurance industry is some kind of racket—and wants no part of it!

And admittedly, our Joseph K is not very “computer-literate” and finds it more than a little exasperating to try to comprehend all the provisions of a jerry-built “Affordable” Care Act. Couldn’t the government, he asks, have mailed (simplified) application forms to each and every citizen (counted in the 2010 U.S. Census)? He’s always found legalistic small-print, provisos and disclaimers more than a little confusing (and annoying). Given such typically over-complicated ordeals, Joseph understandably has become a fanatic for simplification. Why can’t “the government,” he again recently demanded, simply establish “Medicare for All”? After all, he pointed out, “we” spend trillions for “defense”—and from whom, exactly? He doesn’t know (but was under the impression that the U.S.-Soviet nuclear arms race ended some time ago).

Well, to make a long story short: our friend Joseph, feeling trapped between corrupt insurance giants and coercive big government, was so demoralized that he decided to leave all this behind. So much so, it turns out, that he urgently asked his creator Kafka to return him back to the world of fiction–wherein he will at least continue his Sisyphean struggle against coercion with some measure of defiance and tragic dignity.

~

William Manson is the author of The Psychodynamics of Culture (Greenwood Press).

December 28, 2013 Posted by | Civil Liberties, Economics, Full Spectrum Dominance, Progressive Hypocrite, Timeless or most popular | , , , | Leave a comment

Christmas versus Xmas: A Political Reading

By James Petras | December 28, 2013

The transformation of Christmas from a story about a migrant working-class family fleeing state persecution, in the search for a safe haven and receiving support and solidarity to the biggest capitalist commercial bonanza of the year – has far-reaching political consequences.

Taking Christ out of Christmas

The fundamental ‘change’, engineered by the capitalist class in pursuit of profits, was to take the ‘Christ Story’ out of Christmas and to convert the weeks before and after into a consumer orgy. Aided and abetted by “secularist allies”, the capitalist class succeeded in eliminating any reference to the Christmas story, including the nativity scene and carols commemorating it, from public spaces. The significant social message, embedded in the Christmas story, is diluted by well-meaning cultural diversity-promoters, who demand ‘equal time for ‘Hanukah’ (a Jewish narrative celebrating war, conquest and the slaughter of ‘apostate-assimilated-Hellenized’ Jews by traditionalists-fundamentalists — an event not even mentioned in the Hebrew Bible) and Kwanzaa (a holiday invented in the 1960’s by a cultural black nationalist preaching “self-help”). In place of the Christmas story, we have been given anachronistic ‘Nordic tales of tree worship’ and ‘gift giving’ by an obese, bearded sweat-shop owner employing stunted slave workers (‘Hi Ho, Hi Ho! It’s off to work we go; we work all day, we get no pay! Hi Ho, Hi Ho!’). This has become the dominant mythology driving the consumerist – profiteering of the global commercial – capitalist production chain.

Over time, it came to pass that ‘Christmas’ commercial sales became the centerpiece of capital accumulation. New and powerful sectors of capital entered the field. Finance capital, particularly credit card companies charging debtors usurious, interest rates over 20% per year, became central to and the principal beneficiaries of the great transformation of the Christmas story.

The new, modern, secular monetized, relativized Christmas story redefined the entire meaning of the holiday.

First, there was the language ‘excision’; the prefix was altered. Christ-mas became Xmas. The X symbol left out what constituted the original narrative and circumstances surrounding the celebration of the birth of Jesus.

Once the original class origins of the Christmas story were erased and the conflict between the absolutist state and civil society were abolished, the capitalist class inserted its own ‘props’ into the story: the Xmas tree became the site for consumer ‘gifts’; the Xmas ‘stocking’ had to be filled with consumer goods; the Xmas day image required the “happy family” opening up boxes of consumer goods – bought on credit at 20% interest rates.

The driving force behind the phony props and imagery is a command headquarters composed of capitalist manufacturers, wholesalers and retailers, market analysts, publicists, consultants, advertisers, investors, factory owners employing a vast army of low paid workers in Asian manufacturing sweatshops and huge corporate retail outlets with minimum wage salespeople. Christmas sales are the major profit maximizing occasion for the entire year: the success or failure of commercial capitalism rides on the profits accrued between November 30 and January 7. The entire capitalist edifice rests on the notion that “Xmas” is about large-scale buying and selling of consumer goods; it is about ensuring that class inequalities and racial divisions are temporarily blurred; that repressive police state intrusions into the privacy of family life are forgotten and that social solidarity is replaced by an orgy of individual consumerism.

‘Xmas’ is a time to celebrate massive profiteering, based on the indebtedness of the ‘masses’. It is a time for downsized workers to buy imported goods on credit from manufacturers who had relocated to low wage regions: Price consciousness replaces class consciousness. Picketing US retailers, who import from Bangladesh sweatshop death traps, where workers ‘earn’ $25 a month, goes against the ‘Xmas spirit’. ‘Buy and feel free’! It’s a time to be jolly!

The new secular, monetized ‘Xmas’ is a consumer-driven commercial event motivated by profits, advertisement and the mindless worship of ‘the market’. Family and neighborly relations are now tied to the cash nexus: Who buys or receives the most expensive gifts experiences the greatest gratification. ‘Gift giving’ is based on ‘consumer spending’; who could imagine any alternative!

Millions of atomized individuals compete to buy the most commodities that their credit/debit cards can cover. ‘Virtue’ becomes ‘success’ in the frantic engagement with the market. From the perspective of political power, individual consumerist consciousness means submission to ‘the market’ as well as submission to the ruling class, which dominates ‘market relations’.

The entire ‘Xmas’ period highlights the fact that market relations between wage-earning/salaried individuals and commercial/financial elites take precedence over productive (and state) relations between capital and labor. In “the market” the struggle is between consumers over commodities, overseen by commercial capital. In the new Xmas story the consumer is the centerpiece; the market is the mediator of all social relations. The ‘Christ story’ has been relegated to a periphery, if not totally excluded. At most, the story is reduced to a birth scene witnessed by cows, sheep and three ‘Kings’.

The conversion of Christmas into the massive Xmas-market event broadens its consumer appeal, increases sales and profits. Potential consumers from all religions (and the non-religious) can join the consumer orgy. It is not about values, ethics, or beliefs – it’s about buying, selling, debt, and accumulation. To be a successful commercial event ‘Christians’ must suppress the politics and ethics of the Christ story, which is dramatically opposed to the immersion in the marketplace.

The Politics of the Christmas Story

The protagonists of the Christmas story, Joseph and Mary, are a working class household living at a subsistence level. Joseph, a carpenter, is partially out of work and earns a minimum wage. They live frugally, spend their meager earnings on essentials and travel cheaply on a donkey. To escape a repressive government they migrate in search of security, hoping to find a new home. The pregnant Mary and her unemployed husband Joseph look for sympathy and solidarity among the poor. They knock on doors but the landlords send them away. Only a poor farmer offers them a place – they can share a barn with the sheep and cows.

In the face of an uncertain future and a troubled present, Mary and Joseph receive material support from local residents in Bethlehem. Three wise men (the Magi or mathematicians from Persia) are internationalists who travel to greet the new family. They show great concern for the new born baby Jesus by perhaps offering this family a scholarship so he can study mathematics and science. The coming together of local neighborhood people and the three educated “outsiders” to celebrate the birth of Christ and offer support to the homeless family, dispossessed migrants, has been an event for wonder and celebration.

Community solidarity, the sharing of food, shelter, learning and fraternal good cheer, in the face of persecution by a criminal state and an avaricious ruling class, defines the spirit of Christmas. The Christmas story affirms the virtues of social solidarity and not individual consumerism. It defines a moment in which the deep bonds of humanity displace the shallow comfort of commodities. It is the celebration of a moment in which the values and virtues of breaking bread in a fraternal community take precedence over the accumulation of wealth.

The Christmas story, the trials and travails of Mary and Joseph and baby Jesus resonate with millions of American workers today: especially those who have lost employment and been dispossessed of their homes. The Christmas story resonates with the tens of millions of immigrants persecuted and jailed by tyrannical states. The Christmas story resonates with the millions of people of color who are “stopped and frisked” by a militarized police.

The Christmas story does not resonate with the owners, investors, and publicists of big commercial enterprises who have converted the multitude into worshipers of their little plastic cards. Taking ‘Christ out of Christmas’ and destroying the joy and fellowship and solidarity of shared humanity embodied in the celebration of the birth of Christ is essential in order to continue to accumulate wealth. Putting the ‘Christ story’ back into Christmas is a step toward defeating consumerist consciousness and recreating social solidarity, so necessary for ending injustice.

December 28, 2013 Posted by | Deception, Economics, Timeless or most popular | , , , , | Leave a comment

Letter to Boeing’s Boss: Squeezing workers for corporate welfare

December 26, 2013

Jim McNerney, CEO
The Boeing Company
100 North Riverside
Chicago, IL 60606

Dear Mr. McNerney:

The squeeze that you and Boeing are putting on your machinist workers’ pensions, pay scales and your stance on other labor issues regarding the assembling of the new 777X airliners is unseemly for several reasons.

First, consider your pay this year of $21.1 million, a 15 percent increase from the previous year, and much higher than your predecessors. That sum does not demonstrate a moral authority to require sacrifices from your workers at a time of rising Boeing sales and profits, dividend increases, cash hoard, and another notorious $10 billion stock buyback. I say notorious because stock buybacks per se do little for shareholder values and a lot for the enlarged stock options of top executives.

Second, you’re holding an auction for your long-time workers jobs in other states, inciting a bidding war whereby states are giving away taxpayer assets to lure your 777X assembly factory with huge tax holidays and other subsidies. Washington state outdid itself with a new law, signed by Governor Jay Inslee with the largest state business tax break package for Boeing in history. The tax escape law “will give Boeing and its suppliers about $8.7 billion in tax breaks between now and 2040,” according to the Citizens for Tax Justice (CTJ) calculations. CTJ adds that “Boeing has managed to avoid paying even a dime of state income taxes nationwide on $35 billion in pretax U.S. profits.” Boeing also received tax advantages from the federal government, including $1.8 billion in federal income tax rebates on its $35 billion in U.S. profits between 2003 and 2012.

Third, in 1997 the Justice Department allowed Boeing to merge with McDonnell Douglas, making Boeing the only manufacturer of commercial jet planes in the United States – a domestic monopoly, justified by the only other foreign competitor – Airbus Industries in Europe. Another valuable gift by Uncle Sam brought about by your company’s Washington lobbyists.

Fourth, recall Boeing’s contract with the Department of Defense for the initial phase of Air Force’s KC-46 aerial tanker program that provoked sharp criticism by Senator John McCain in July 2011 for the excessive burdens on American taxpayers from cost over-runs in a supposed “fixed price” contract. In a letter to Department of Defense Undersecretary Ashton B. Carter, Senator McCain wondered “why under a fixed-price, relatively low-risk contract, taxpayers may have to pay 60 percent of any overrun within that band – up to $600 million.”

A book could be written about the Boeing company’s strategy for externalization of a variety of its costs onto innocent, defensely people – whether workers or taxpayers. Boeing’s systemic campaigns for corporate welfare are shameful. Your company is one of the major corporate welfare kings in America, running a close race with the champion – General Electric. As CTJ wrote: Boeing “employs an army of site location and tax consultants, whose job has been to blackmail states into giving Boeing lavish tax breaks.” These include sales and property tax breaks which drain communities’ ability to provide for school and other public facilities (http://www.goodjobsfirst.org/corporate-subsidy-watch/boeing).

Fifth, there is the gigantic subject of your outsourcing to foreign suppliers, in particular Japan where your technology transfers, damaging the longer term viability of U.S. competitiveness in the aerospace sector for short term gains favoring Boeing, merit thorough examination by the Congress. As you know Boeing’s foreign outsourcing brought your company considerable quality control and delay troubles with the Dreamliner.

You need to read the 2005 report by the Defense Science Board about the hollowing out of domestic capability in the electronics industry from this kind of overseas outsourcing migration by U.S. companies.

For starters read the current copy of The American Conservative magazine’s cover story titled “Japan’s Plan to Unmake Boeing,” describing the full assistance of Boeing. No doubt, if your further cruel downward pressure on your machinists culminates in your destroying their union local and their jobs by leaving the state of Washington and going for example to the anti-union state of South Carolina, there will be further public inquiries. Such as how perverse incentives provided by your suppliers in Japan and elsewhere have furthered job losses here and accelerated your company’s technology transfers perhaps beyond the tipping point against the U.S. national interest.

Sincerely yours,

Ralph Nader
http://nader.org/2013/12/26/letter-boeings-boss-squeezing-workers-corporate-welfare/

December 27, 2013 Posted by | Economics | , , , | Leave a comment

Boeing’s Union Workers in the Crosshairs

By David Macaray | Dissident Voice | December 26, 2013

A brief summary of what’s been happening in Seattle between the Boeing Corporation and its union workforce, the IAM (International Association of Machinists and Aerospace Workers).  Aware they have the upper hand, and that thousands of relatively well-paying jobs hang in the balance, Boeing has resorted to an unsubtle form of carrot-and-stick extortion.

The carrot:  If the IAM agrees to re-open the existing contract and give the company several gut-wrenching concessions involving pensions, health care and future wages, Boeing will stay put, the jobs will remain in Seattle, Boeing, as planned, will allow the IAM to build its new 777X jet airliner, and the future will be rosy.  As the seminar creatures like to say, it’s a win-win.

The stick:  However, if the IAM doesn’t agree to the concessions, the Boeing Corporation will move its 777X operation out of the state of Washington and allow other, more reasonable and dependable states to bid on the job.  According to Boeing, who gleefully leaked the news to the media, 22 states have already shown interest.

More stick:  Realizing it has enormous leverage, and unwilling to let that advantage go unexploited, Boeing issued an ultimatum to the state of Washington.  Unless it gave the company a huge tax break, they would pack up and leave.  In a special legislative session, the state assembly, at the urging of the governor, granted Boeing more than $8 billion in tax breaks, the largest corporate subsidy in U.S. history.

So far, so good.  Everything was coming up roses for Boeing.  It had a state government eating out of its hand, it had the union back on its heels, playing defense, and it had the media doing its bidding. Then a startling and horrific event occurred.  Godzilla ate the carrot and stick.

By a whopping 2-1 margin, the union local, District 751, voted down the offer.  To be clear, this was specifically a vote on the company’s re-opener.  With the contract still in effect, it wasn’t a prelude to a strike.  What the membership was saying with their “no” vote was that the current contract must remain in force until it expires, in 2016, at which time the parties would negotiate a new one, just as they always have.

After that, things got ugly.  Boeing closed ranks and renewed its threat to leave, the state assembly had a cow, and the IAM International demanded that another vote be taken, a move that, understandably, created heartburn at the local.  District 751 doesn’t want another vote on an inferior contract.  Yet, with so much at stake, a very nervous International is insisting that the membership take another look at it.

There’s an old axiom in contract negotiations called the “two vote rule.”  It states that a membership will vote down a contract no more than twice.  They’ll vote it down once, to show their disapproval, they’ll vote it down twice, to show their defiance, but the third time around—partly from fatigue, partly from the realization that it’s likely the best offer they’re going to get—they’ll vote to ratify (unless they move to strike).

Thus, the union leadership’s fears are not unfounded.  Rather than buying into the company’s rhetoric, they see the Boeing move for the audacious and naked power play it is.  The IAM International may be too scared to call Boeing’s bluff, but District 751 isn’t.  In their view, all this talk about moving the 777X out of Seattle is just that….talk.

Not only are Boeing’s profits at a record high, the union believes if Boeing truly thought that uprooting its Seattle operation and moving to another state made the best business sense, they would have done it.  What’s to prevent them?  If moving was the “right” thing to do, they would have already moved.  This is a bluff, plain and simple.

Per the International’s demand, another vote is scheduled for January 3.  Unlike the bad old days, when certain unnamed unions (okay, the Teamsters) could unilaterally ratify a contract on behalf of the members, today’s unions are wildly democratic.  The members have the final say, and votes are conducted by secret ballot.

If District 751’s leadership can maintain discipline and keep the membership’s eye on the ball, this re-opener will be voted down.  And if there’s another vote following this one, we can only hope that the union is able to disprove that old “two vote rule.”  After all, weren’t rules meant to be broken? Onward!

David Macaray can be reached at: dmacaray@earthlink.net.

December 27, 2013 Posted by | Deception, Economics, Solidarity and Activism | , , , , | Leave a comment

Washington’s Real Aims in Colombia

Mythmaking in the Washington Post

By Nick Alexandov | CounterPunch | December 27, 2013

Last Sunday’s Washington Post carried a front-page article by Dana Priest, in which she revealed “a CIA covert action program that has helped Colombian forces kill at least two dozen rebel leaders.”  Thanks to “a multibillion-dollar black budget”—“not a part of the public $9 billion package of mostly U.S. military aid called Plan Colombia”—as well as “substantial eavesdropping help from the National Security Agency,” the initiative has been successful, in Priest’s assessment, decimating the Revolutionary Armed Forces of Colombia (FARC) guerrillas, as the country’s “vibrant economy” and “swanky Bogota social scene” flourish.

The lengthy piece offers a smorgasbord of propagandistic assertions, pertaining both to Washington’s Colombia policies, and to its foreign conduct in general.  For a sampling of the latter, consider one of the core assumptions underlying Priest’s report—namely, that our noble leaders despise drugs.  The FARC’s “links with the narcotics trade” and “drug trafficking” motivated U.S. officials to destroy their organization, we’re supposed to believe.  True, CIA informants in Burma (1950s), Laos (1970s), and Afghanistan (1980s) exploited their Agency ties “to become major drug lords, expanding local opium production and shipping heroin to international markets, the United States included,” Alfred W. McCoy’s research demonstrates.  True, a few decades ago the Office of the United States Trade Representative joined “with the Departments of Commerce and State as well as leaders in Congress” for the purpose of “promoting tobacco use abroad,” the New York Times reported in 1988, quoting health official Judith L. Mackay, who described the resulting “tobacco epidemic” devastating the Philippines, Malaysia, and other countries: “smoking-related illnesses, like cancer and heart disease” had surpassed “communicable diseases as the leading cause of death in parts of Asia.”  True, the DEA shut down its Honduran office in June 1983, apparently because agent Thomas Zepeda was too scrupulous, amassing evidence implicating top-level military officials in drug smuggling—an inconvenient finding, given Honduras’ crucial role in Washington’s anti-Sandinista assault, underway at the time.

But these events are not part of History, as the subject has been constructed in U.S. schools.  It’s common to read, every year or so, an article in one of the major papers lamenting the fact that “American students are less proficient in their nation’s history than in any other subject,” as Sam Dillon wrote in a 2011 piece for the Times.  The charge is no doubt true, as far as it goes: Dillon explained that only a “few high school seniors” tested were “able to identify China as the North Korean ally that fought American troops during the Korean War,” for example.  But the accusation is usually leveled to highlight schools’ inadequacies, with little examination of the roles these institutions are meant to serve.  And the indictments are hardly novel: in 1915, a Times story on New York City’s public schools complained their graduates “can not spell simple words,” were incapable of finding “cities and States” on a map, and so on.  That piece explicitly critiqued graduates’ abilities to function as disciplined wage-earners, and so was more honest than the majority of today’s education coverage.  The simple fact is “that the public schools are social institutions dedicated not to meeting the self-perceived needs of their students [e.g., by providing an understanding of how the world works] but to preserving social peace and prosperity within the context of private property and the governmental structures that safeguard it,” David Nasaw concludes in his fascinating history of the subject.  Private schools, to be sure, are similar in essential respects.  And one result of this schooling is that well-educated journalists can repeat myths about U.S. foreign policy, as their well-educated readers nod in blind assent.

The notion that U.S. officials have a coherent counterdrug policy is, again, one of these myths.  In addition to the historical examples of U.S. support for drug traffickers cited above, we can note that the slur “narco-guerrilla,” which Washington uses to imply that the FARC is somehow unique for its involvement in the narcotics trade, ought to be at least supplemented by—if not abandoned in favor of—“narco-paramilitary.”  Commentators tend to discuss the paramilitaries and the Colombian state separately, presupposing the former are “rogue” entities—another myth—when it would be better to view them, with Human Rights Watch, as the Colombian Army’s unofficial “Sixth Division,” acting in close conformity with governmental aims.  Paramilitary leader Carlos Castaño admitted in March 2000 that some 70% of the armed groups’ funding came from drug trafficking, and U.S. intelligence agencies took no issue with his estimate—and “have consistently reported over a number of years that the paramilitaries are far more heavily involved than the FARC in drug cultivation, refinement and transshipment to the U.S.,” International Security specialist Doug Stokes emphasizes.

When these substances enter our country, they become a key pretext for the skyrocketing incarceration rate, which has more people imprisoned for drug offenses today than were incarcerated for all offenses in 1980, criminologist Randall Shelden has pointed out, with rates of arrest and sentencing durations especially severe for blacks.  “Every criminal prohibition has that same touch to it, doesn’t it?” legal historian Charles Whitebread once asked.  “It is enacted by US,” he stressed, “and it always regulates the conduct of THEM”—“you know, them criminals, them crazy people, them young people, them minority group members,” he added sardonically.  Reviewing the history of marijuana prohibition, Whitebread noted that, at the Marihuana Tax Act hearings in 1937, two men spoke regarding the drug’s medical effects.  One was Dr. William C. Woodward, Chief Counsel to the American Medical Association, who explained his organization had found “no evidence that marihuana is a dangerous drug.”  “Doctor,” a Congressman complained, “if you can’t say something good about what we are trying to do, why don’t you go home?”  The second was a Temple University pharmacologist, “who claimed that he had injected the active ingredient in marihuana into the brains of 300 dogs, and two of those dogs had died.”  When one Congressman asked him whether he had experimented on dogs because of some similarity they bore to humans, the pharmacologist professed ignorance: “I wouldn’t know, I am not a dog psychologist.”

That was the extent of the medical basis for outlawing marijuana in the U.S., as threadbare as the anti-drug pretexts of Washington’s Colombia policies.  Nearly four years after Plan Colombia’s 1999 announcement, for example, the U.S. General Accounting Office reported that “the Departments of State and Defense [had] still not developed estimates of future program costs, defined their future roles in Colombia, identified a proposed end state, or determined how they plan[ned] to achieve it.”  But while efforts to reduce coca cultivation and cocaine production were poorly articulated—and failed consistently—other endeavors met with great success.  For example, aerial fumigation displaced some 17,000 people from the Putumayo Department, where the FARC had a major presence, in 2001 alone.  The fumigation effectively converted the land from a means of subsistence into a profit source: journalist Garry Leech pointed out that, from 2003-2004, there was “a slew of new contracts signed between multinational companies and the Colombian government,” and the events in Putumayo and elsewhere suggest that Colombia’s herbicide-spraying campaign was never really aimed at illicit crops, typically described as the main target.  It seems that if the point were to eradicate, say, coca, the solution would be relatively simple: let coca growers harvest something else.  But Plan Colombia has consistently devoted only minimal funding for alternative development schemes, indicating the peasants’ sin isn’t growing coca, but living as subsistence farmers.  That kind of activity is an inappropriate use of the land in an oil-rich region, where there are profits to be made.

A Guatemalan peasant made a similar point to author-activist Kevin Danaher, when he visited her country in 1984—shortly after School of the Americas alumnus Ríos Montt had completed his genocidal tear through the countryside.  The woman, Danaher writes, “told us that soldiers had come to her home one night and hacked her husband to death, right in front of her and her three children;” the man “was a subversive,” in the military’s eyes, “because he was helping other peasants learn how to raise rabbits as a source of food and money.”  Danaher struggled to understand the connection between this effort at self-sufficiency, and the brutal end its advocate met.  “Look,” the widow explained, “the plantations down along the coast that grow export crops are owned by generals and rich men who control the government.  A big part of their profit comes from the fact that we peasants are so poor we are forced to migrate to the plantations each year and work for miserable wages in order to survive.”  Were she and other Guatemalan peasants to become self-reliant, they “would never work on the plantations again”—an indication of the severe threat rabbit-raising posed.

This woman’s remarks indicated who Washington’s real enemy was in Guatemala, and throughout the world.  The U.S. government was not opposed merely to “Communists,” real or imagined, during the Cold War, and in Colombia its policies have helped ruin—or end—the lives of millions of destitute individuals beyond the FARC’s top officials.  Of course, Sunday’s Post article ignores this fact, portraying the struggle as one between the U.S. government and its Colombian allies on one side, and aggressive guerrillas on the other.  But we can expect little else from this mythmaker of record.

December 27, 2013 Posted by | Deception, Economics, Mainstream Media, Warmongering | , , , , , , , , | Leave a comment

Obama regime underestimated cost of maintaining nuclear weapons by $140 Billion

By Noel Brinkerhoff and Danny Biederman | AllGov | December 27, 2013

Defense officials in the Obama administration were more than a little off when they told Congress the cost of maintaining the nation’s nuclear weapons arsenal over the next 10 years.

They missed the mark by at least $140 billion.

Two years ago, the Pentagon informed lawmakers that they would need to allocate $214 billion over the coming decade to operate and upgrade the stockpile of nuclear warheads and delivery systems.

But the Congressional Budget Office (CBO) looked at the Defense Department’s future plans and found that nuclear weapons-related costs were more likely to reach $355 billion by 2023.

That’s 66% higher than the 2011 estimate.

The $355 billion includes $136 billion to modernize and operate submarines, bombers and missiles that deliver warheads, $105 billion to run weapons labs, weapons and naval reactors, $56 billion for command and control systems, and $59 billion for unforeseen technical problems or mismanagement.

And that’s just the direct costs related to the nuclear arsenal.

CBO officials point out there are other, very costly programs that exist because of the nuclear weapons program, such as cleaning up shuttered nuclear fuel facilities or the nation’s missile defense systems for shooting down other nation’s nuclear missiles.

These other costs will likely cost the government another $215 billion over the next decade.

“Nuclear weapons aren’t cheap as some high-ranking Pentagon officials have suggested,” Kingston Reif, director of nuclear non-proliferation at the Center for Arms Control and Non-Proliferation, an advocacy group in Washington, told the Center for Public Integrity.

Last year, Deputy Secretary of Defense Ashton Carter said that nuclear weapons are “just not that expensive,” a remark that triggered controversy and a Congressional request that the CBO nail down accurate costs.

Reif added that the Obama administration should consider scaling back its plans due to mounting costs, otherwise the result will be “nuclear disarmament by financial default.”

Apart from making the weapons more secure, the purpose of the nuclear modernization program, according to President Barack Obama, is “to give U.S. military and political leaders the confidence they need to negotiate further reductions in the nuclear arsenal,” wrote Reuters’ David Alexander.

Aspects of the modernization program are misguided and in violation of the spirit of the administration’s pledge to develop no new nuclear arms, the Union of Concerned Scientists said in its own October report.

To Learn More:

Obama Administration Understated Nuclear Weapons Costs (by R. Jeffrey Smith, Center for Public Integrity)

U.S. Nuclear Weapon Plans To Cost $355 Billion over a Decade: CBO Report (by David Alexander, Reuters)

Document: CBO Report on Cost of U.S. Nuclear Forces from 2014 to 2023 (USNI News)

Obama Pledges $11 Billion to Upgrade U.S. Nuclear Weapons (by Noel Brinkerhoff, AllGov)

December 27, 2013 Posted by | Deception, Economics, Militarism, Progressive Hypocrite | , , , | Leave a comment

The shadowy Zionist ‘advisor’ behind ‘Thatcherism’

By Maidhc Ó Cathail | The Passionate Attachment | December 27, 2013

Not many tears were shed when The Rt Hon. Baroness Thatcher, LG, OM, PC, FRS — or Maggie Thatcher, as she is irreverently remembered by the Irish and numerous other aggrieved parties in Britain and beyond — passed away this April. But how many of Mrs. Thatcher’s many haters around the world are aware of “the shadowy ‘advisory’ role played throughout her premiership” by the nephew and heir of the man to whom the Zionist-drafted, deliberately conflict-catalyzing Balfour Declaration was addressed?

In an important April 16 Russia Today op-ed piece, British investigative radio journalist Tony Gosling finally broached the media taboo against identifying the Iron Lady’s influential behind-the-scenes pro-Israel “advisor” dubbed “the man in the shadows”:

The taboo not a single commentator has broached though is the shadowy ‘advisory’ role played throughout her premiership by European banking fraternity’s Labour peer Lord Victor Rothschild. He was revealed in the book the Thatcher government tried to suppress, Peter Wright’s Spycatcher, to be behind London’s top secret service appointments. In 1986 Rothschild penned ‘Paying for Local Government’ the policy paper that led to the notorious Poll Tax that fell hardest on the poorest, and which brought Britons onto the streets of London in their hundreds of thousands in 1990, riots echoing London’s Poll Tax revolt of 1381.

And according to the then BBC Chairman Marmaduke Hussey, Lord Victor also initiated the sacking in 1987 of the last independent-minded Director General of the BBC, a castration from which the corporation never quite recovered.

One word captures the essence of the Thatcher legacy; ‘privatisation‘. As an exasperated former Tory Prime Minster Harold Macmillan put it “she’s selling off the family silver!”. And so tens of mind-boggling billions of pounds of silver were auctioned off to the highest bidders, mostly to Rothschild’s kith and kin. From shipyards and public housing to telephones, steel, oil, gas and water, anyone in the world was free to own the infrastructure and manufacturing heart of Britain that was once collectively ‘ours’. [emphasis added]

So, the next time you hear someone bemoan the consequences of “Thatcherism,” just tell them that the predictably oligarch-benefiting ideology should more accurately be called “Rothschildism.” Or if, like me, you’re in Japan, you could explain that the much-touted “Abenomics” — a deferential reference to Thatcherism’s “Chicago model” -based American counterpart “Reaganomics” — is simply the latest disastrous reincarnation of “Zionomics.”

Maidhc Ó Cathail is an investigative journalist and Middle East analyst. He is also the creator and editor of The Passionate Attachment blog, which focuses primarily on the U.S.-Israeli relationship. You can follow him on Facebook and Twitter @O_Cathail.

December 27, 2013 Posted by | Economics, Ethnic Cleansing, Racism, Zionism, Mainstream Media, Warmongering, Timeless or most popular, Video | , , , , , , | Leave a comment

FDA Antibiotic Guidance Is Gift To Big Pharma and Big Meat

By Martha Rosenberg | Dissident Voice | December 23, 2013

This month’s FDA guidance for reducing livestock antibiotics will actually make things worse, animal welfare and food activist groups are saying. “The FDA is using a garden hose on a forest fire,” says Farm Sanctuary Senior Policy Director Bruce Friedrich. The guidance is a “diversion” that pretends to address the problem of factory farm-driven antibiotic resistance while accomplishing nothing. Antibiotic resistant infections, widely seen as driven by factory farming, sicken 2 million a year in the US and kill 23,000, says the CDC. By asking drug makers to voluntarily renounce the use of antibiotics for livestock growth on their labels, the guidance “won’t cost the industry a penny” or reduce antibiotic use at all, says Friedrich. The reason? Factory farm antibiotics are also used to treat sickness which the crowded conditions tempt — a use that is still allowed under the guidance. Only the wording will change, says Friedrich.

In a December 11 conference call, the FDA’s Michael (“Monsanto”) Taylor, deputy commissioner for foods and veterinary medicine, William T. Flynn, deputy director for science policy and USDA’s Thomas J. Myers, associate deputy administrator, told reporters that the government is asking drug makers to voluntarily restrict the uses on their antibiotic labels –yes, asking – in a shocking gift of self-regulation. Similar honor systems exist at slaughterhouses since Hazard Analysis and Critical Control Points (HACCP) was instituted in 1998 in which industry creates its own safety plan which the government simply cosigns. A similar honor system called the Hazard Analysis and Critical Control Point-Based Inspection Models Project (HIMP) is imminent for poultry slaughterhouses.

Why are the FDA and USDA allowing industry to write its own ticket? (And why would industry write itself out of its own profits?) Because to mandate the changes would require “hundreds of separate regulations” and actions, whined government officials on the conference call. It is easier to just say please to industry.

To many reporters on the conference call, the plans sounded like fluff. If the changes are voluntary, “what will enforce” them and serve as an “incentive” asked an ABC reporter? Food producers and drug companies need no incentive retorted Michael Taylor because they are starting to phase out antibiotics “for their own reasons” — citing McDonald’s and KFC. Right.

If factory farmers actually phased out antibiotics (which prevent animals from becoming sick in high density-farming) won’t livestock producers “have to move to different buildings” asked a reporter from Reuters. That’s why we are giving industry three years to comply replied William Flynn.

Will you release the identifies of drug companies who do not comply asked another reporter? No, replied Flynn. We will give an “overview” of  the level of “engagement” of  industry but not individual company names. (USDA has also protected the identities of US ranches that released mad cows into the US food supply and restaurants who served them according to newspaper and government sources.)

Animal welfare groups like Farm Sanctuary, American Society for the Prevention of Cruelty to Animals and the Animal Legal Defense Fund are not the only ones calling the FDA guidance toothless and a serious capitulation to industry. Congresswoman Louise M. Slaughter, the only microbiologist in Congress, called the guidance “an inadequate response to the growing antibiotic resistant crisis caused by overuse of antibiotics on the farm.” Industry has spent over $17 million to block a bill Rep. Slaughter developed, in conjunction with the late Sen. Ted Kennedy, called the Preservation of Antibiotics for Medical Treatment Act (PAMTA), says a press release from her office.

This is not the first time government has caved to drug makers over the regulation of livestock antibiotics. In 2008, the FDA had announced that there was “evidence that extralabel use of these drugs [cephalosporins] in food-producing animals will likely cause an adverse event in humans and, as such, presents a risk to the public health,” and called for their prohibition. Notice the FDA says “will likely cause” not “could likely cause” and “presents a risk” not “could present a risk”?

But by the time hearings were held two months later and lobbyists had worked their magic, the “Cephalosporin Order of Prohibition” had somehow become a “Hearing to Review the Advances In Animal Health Within The Livestock Industry.” Prohibition — advances, same idea, right?

At the hearings, the American Veterinary Medical Association (AVMA), the Animal Health Institute, a Big Pharma trade group and the egg, chicken, turkey, milk, pork and cattle industries whined that they could not “farm” without antibiotics because more feed would be required and the animals would get sick from being immobilized over their own manure.

Afterwards, W. Ron DeHaven, DVM, who was the USDA’s top vet before leaving for industry and helming the AVMA, penned a rambling, almost incoherent 18-page letter with 62 footnotes to the FDA. Cephalosporin resistant “human pathogens” aren’t increasing, says the letter, and even if they are, they’re not affecting human health, and even they’re affecting human health, how do you know it’s from the livestock drugs, and even if it’s from the livestock drugs, the FDA has no legal authority to ban cephalosporin. Got that?

Alternately maudlin and accusatory, the letter plays on terrorism fears by calling a cephalosporin ban a “food security issue” affecting “the number of animals available for the food supply.” It also plays on humanitarian sentiments by claiming a ban would impede veterinarians’ ability “to relieve the pain and suffering of animals” as if cephalosporins are pain killers and other drugs aren’t available. (And as if antibiotics are given for animals’ welfare instead of revenue welfare!) But less than a month after the letter was sent, on November 25 the FDA quietly revoked the prohibition. Good hire, AVMA!

It is no surprise that factory farm operators fight to keep their antibiotics says Farm Sanctuary’s Bruce Friedrich. Without them, in their profit-driven “filth chambers,” the animals would simply die.

December 26, 2013 Posted by | Corruption, Deception, Economics, Environmentalism | , , , | Leave a comment

AIPAC’s Fed Candidate Stanley Fischer on a Warpath against Iran

Dual-citizen nominee’s lifetime benefit to Israel comes at a heavy cost to America

By Grant F. Smith | Dissident Voice | December 26, 2013

The rushed campaign to insert Stanley Fischer straight from his position leading Israel’s central bank into the number two spot at the Federal Reserve has allowed little time for research into the appointee’s career or for informed public debate about his record. Like the failed recent Obama administration-Israel lobby pincer move to ram approval for U.S. military strikes on Syria through Congress, avoiding such due diligence through velocity may actually be the only means for successful Senate confirmation.

Some of Fischer’s accomplishments – from co-authoring a seminal textbook on macroeconomics to handling economic crisis at the IMF have – not surprisingly – been recalled by his many supporters. Other doings that shed light on Fischer’s controversial attributes – such as overhauling how U.S. aid and trade packages are delivered to Israel – have been mostly ignored. Appointing an openly dual Israeli-American citizen into the most important central bank in the world could be a watershed moment. While the doors of federal government have long swung open for Israel-lobby appointees focusing most – if not all – their energies on advancing the interests of a foreign state, any who were actually Israeli dual citizens have traditionally kept that a closely-guarded secret. Fischer’s long-term boosters, including the American Israel Public Affairs Committee (AIPAC), likely want to accustom Americans to openly dual citizens circulating between top roles in the U.S. and Israeli governments. A closer examination of Fischer reveals that average Americans have good reason to oppose his appointment, because his lifelong achievements for Israel have imposed high costs and few benefits to the United States while making peace more difficult to achieve.

Economics

Stanley Fischer was born in Northern Rhodesia in 1943. He studied at London School of Economics and received a PhD in economics from MIT. He taught and chaired the MIT economics department and co-authored a leading macroeconomics textbook with Rudiger Dornbusch. Fischer joined the World Bank in 1988 and became the first deputy managing director of the International Monetary Fund (IMF) in 1994. He oversaw emergency bailout lending and austerity programs over Mexico, Thailand, Indonesia, Russia, Brazil and Argentina. High flying Citigroup – under the helm of Sanford “Sandy” Weill – recruited Fischer in 2002. There he rose to become vice president with a seven-figure pay package.

Israel

Fischer has not only been an ardent supporter of Israel, his professional efforts began when he took sabbatical leave to Israel in 1972 and 1976-1977. He was a visiting scholar at the Bank of Israel in 1980. More importantly for Israel, Stanley Fischer won an appointment to the Reagan administration’s U.S.-Israel Joint Economic Discussion Group that dealt with Israel’s 1984-1985 economic crisis. In October of 1984, Israeli Prime Minister Shimon Peres arrived in Washington asking an initially reluctant Reagan Administration for an additional $1.5 billion in U.S. emergency funding – over and above the already-promised aid $5.6 billion aid package.1 The help amounted to U.S. taxpayers funding each Israeli citizen $1,650. Another key component of the plan called for a largely unilateral lowering of U.S. tariffs and trade barriers to Israel, a program initially called “Duty Free Treatment for U.S. Imports from Israel” but later repackaged and sold as America’s first “free trade” agreement. Over time the FTA reversed a previously balanced U.S.-Israel trading relationship for one that has produced a cumulative deficit to the U.S. that passed $100 billion in 2013. Seventy American industry groups opposed to the give-away in 1984 were disenfranchised when Israeli Economics Minister Dan Halpern and AIPAC illegally obtained a classified compendium of their industry, market and trade secrets to use against them in lobbying and public relations. An FBI espionage and theft of government property investigation was quashed before it could narrow in on those inside the U.S. government who delivered the secrets to Halpern.

The U.S.-Israel Joint Economic Discussion Group fundamentally transformed U.S. aid to Israel forever. Before the Reagan administration, most U.S. aid to Israel took the form of loans that had to be repaid with interest. After the input of Fischer’s team, subsequent U.S. aid was delivered in the form of outright grants paid directly from the U.S. Treasury – never to be repaid or conditioned when Israel took actions the U.S. opposed.

Like many of Fischer’s later IMF austerity programs, the Joint Discussion Group initially announced that strings attached to the aid would make it temporary. Secretary of State George Shultz insisted during a 1985 address to AIPAC that “Israel must pull itself out of its present economic trauma …. No one can do it for them … our help will be of little avail if Israel does not take the necessary steps to cut government spending, improve productivity, open up its economy and strengthen the mechanisms of economic policy. Israel and its government must make the hard decisions.”1 Shultz wanted to make the huge American cash transfer conditional on major Israeli economic reforms, but intense AIPAC lobbying in Congress threatened to make the State Department influence irrelevant. In the end, Congress delivered aid without Israeli sacrifices, such as selling off bloated state-owned industries and spending belt-tightening. The proposed privatization of $5 billion in state enterprises threatened too much bureaucratic “turf” and too many jobs, so Israel put them on hold. Fischer apologetically characterized the Likud years as a “wasted opportunity by a government that should have known better.”2 Not until 1996 were Fischer’s proscribed economic remedies adopted by American neoconservative consultants to Benjamin Netanyahu as minor points in the “Clean Break” manifesto for Israeli regional hegemony. They remain among the few unimplemented tasks in a plan that called for military action against Iraq, Syria, and Lebanon.

Despite the absence of any real economic reforms that would take Israel off the American taxpayer dole, Fischer co-wrote a blustering 1986 article for the Wall Street Journal called “Israel Has Made Aid Work” that AIPAC circulated widely as an official memorandum of its achievements. “Israel is the largest single recipient of economic aid from the U.S. This is partly because the economic stability of Israel is uncertain and is important to U.S. national interests. Therefore a report on the progress of the Israeli economy is relevant to policy decisions to be made here.” Fischer never bothered to substantiate his premise, that U.S. national interests were somehow served by the bailout or that any aid given to Israel produced tangible benefits. Instead Fischer delivered a fusillade of dry and all but unreadable statistics about Israel’s temporary economic performance. Issues of long-term importance to most Americans, such as returning U.S. aid to the traditional format of loans to be repaid and the likely impact of the FTA on U.S. jobs went unaddressed by Fischer. Fischer’s core achievement – that the transformation of aid from loans to outright taxpayer give-aways – has been unchanged since 1986. The premises behind this ever-increasing entitlement and one-sided FTA performance are likewise never reexamined by Congress – despite the fact that a majority of polled Americans have come to oppose aid increases to Israel. Fischer’s rare admonitions that Israel be held to account, unlike like the economies he transformed through biting IMF austerity programs, have remained nothing more than lip service.

At the end of 2004 Israel’s U.N. ambassador recruited Fischer to become the head of Israel’s central bank, asking, “Why not be our governor?”3 Fischer accepted and initially provided endless amusement to reporters by insisting on speaking Hebrew during press conferences and refusing to speak English. Initial concerns that Fischer’s global stature and experience would overshadow and chafe the relevant players in Israel proved unfounded as Fischer moved energetically into his new role. AIPAC continued to trumpet Fischer’s accomplishments steering Israel through the global financial crisis, though beneath the surface he was performing far more serious tasks for Israel and its global lobby.

Iran Sanctions

As Bank of Israel governor, Stanley Fischer played a central role in coordinating the implementation of AIPAC-generated sanctions against Iran – ostensibly over its nuclear program. Stuart Levey, the head of the U.S. Treasury Department’s division for “Terrorism and Financial Intelligence,” an office created after heavy AIPAC lobbying, met often with Fischer in Israel alongside the Prime Minister, Foreign Minister and chiefs of both the Mossad and Shin Bet to explore how to “supplement” UN sanctions and end-run Russian and Chinese opposition.4 The Levey-Fischer strategy was “to work outside the context of the Security Council to engage the private sector and let it know about the risks of doing business with Tehran” particularly against European banks that had only partially drawn back their business dealings with Iran. In 2010, Israel dispatched Fischer to meet with Chinese and Russian “counterparts” in order to financially isolate Iran.5

Fischer’s final official duties for the Israeli government included drilling for “big crisis” scenarios – specifically, Fischer told an Israeli television station – the unavoidable financial fallout of a military attack on Iran.6 “We do plans, we do scenarios, we do exercises about how the central [bank] will work in various situations.”7 After years targeting Iran, Fischer became convinced in his final months in Israel that sanctions alone were not enough to collapse its economy. Fischer reluctantly concluded that even as Iranian economic prospects “continue to go down” the country would likely “find a way to continue to keep economic life going.”7

Fischer suddenly resigned and left the Bank of Israel on June 30, before completing his second five-year term.

Israelis into the Fed and then where?

The last time Fischer’s name was floated to lead a major organization was during a rushed Bush administration attempt at damage control. In 2007, the controversial architect of the Iraq invasion and later World Bank President Paul Wolfowitz was engulfed in an ethics scandal over his pay and promotion package for Shaha Ali Riza. In two short years leading the institution, Wolfowitz catalyzed the alienation of most divisions within the bank and the distrust of economics ministries around the world. Fischer, along with Robert Zoellick and Robert Kimmitt and a handful of others, was considered as an emergency replacement while the administration and stakeholders strategized on how to ease Wolfowitz out with a minimum of scandal.8 In the end, Fischer stayed put in Israel.

It came as a surprise to many when the Wall Street Journal and Israel’s Channel 2 news simultaneously reported in early December 2013 that the White House was “close to nominating” Fischer to be appointee Janet Yellen’s second-in-command at the U.S. central bank.9 Media reports initially indicated that Fischer’s candidacy-to-Senate-confirmation would proceed on greased skids – with no Senate debate – taking only a week so that the pair could quickly take over the Fed in January. However, the Senate concluded its 2013 business without taking up the matter. The earliest date the measure could be put up for a vote is January 6, 2014. Even that date might slip since Senator Rand Paul and Minority Leader Mitch McConnell plan to delay the vote unless a long-languishing measure to “Audit the Fed” is also put up for a vote.

This rushed approach has meant relatively little reporting on the deeper implications of having an openly dual Israeli-American citizen a heartbeat away from Fed chairmanship. That is unfortunate, since Israel and its U.S. supporters have many hidden reasons for wanting stronger influence at the Fed that they would likely prefer not to discuss.

That the Fed is a key player in Iran sanctions implementation is certainly no secret. The Fed has been an equal partner in levying hundreds of millions in fines against foreign banks such as R.B.S, Barclays, Standard and Chartered and H.S.B.C. which were charged with violating the Iran sanctions regime. Although AIPAC never mentions it, American exporters have been seriously hurt by sanctions on Iran and the punitive secondary boycott. A coalition representing the US Chamber of Commerce, the Business Roundtable, Coalition for American Trade, the National Foreign Trade Council and others urged Congress not to enact sanctions provisions they estimated would cost $25 billion and 210,000 American jobs. (pdf) Keeping such a costly regime in place despite thawing relations and any hard evidence of an Iranian nuclear weaponization program has therefore required immense ongoing efforts by Israel lobbying groups.

An equally important target for Fischer and Israel may be – somewhat ironically given their pro-boycott programs – anti-boycott activities. In the 1970-80s the Federal Reserve played an active “moral suasion” role chastising and corralling U.S. banks away from any activity that Israel construed as compliant with the Arab League economic boycott. An expert with deep experience enforcing the international boycott of Iran, Fischer is likely aware of the many active American grass-roots campaigns aimed at ending the Israeli occupation of Palestinians through targeted boycotts. These boycotts range from efforts to get retailers to stop carrying manufactured goods produced in the occupied West Bank (Ahava and Soda Stream), to overturning contracts with firms providing services in occupied territories (Veolia), to academic boycotts and even efforts to get labor union pensions to divest from Israel bonds. Working more closely with Israel and AIPAC, the Fed could become a vital node for reinterpreting and enforcing old or new laws aimed at outlawing and punishing groups organizing such grass-roots activities by targeting U.S. bank accounts and freezing their financial flows.

Fischer may also want to launch “exercises” to prepare the U.S. financial system for the fallout of Israeli military attacks on Iran. New bills in Congress drafted by AIPAC call not only for additional sanctions aimed at thwarting a fledgling deal on Iran’s nuclear program (favored 2-to-1 by Americans). AIPAC’s bill forces the U.S. to “have Israel’s back” in the event of a unilateral Israeli strike. If Israel has already decided to attack Iran, it would benefit immensely from having Fischer inside the Fed, protecting the financial flows Israel now regards as all but a birthright from its primary global underwriter. Less well-known is the Fed’s authority to authorize foreign bank acquisitions. Any future Israeli campaign to further entwine its banks into the U.S. financial system through acquisitions would likely find a much more welcoming regulator in Fischer.

Whatever the real motivation for Fischer’s sudden, inexplicably rushed insertion into the Federal Reserve, it is also worthwhile to note longstanding Fed policies have correctly considered U.S. citizenship to be preferable for at least one key position, “because of the special nature of the supervisory function, the need to ensure confidentiality of information, and the delegated nature of the function.” Unfortunately, that policy preference covers only Fed bank examiners rather than top leadership – the Federal Reserve Act is silent on the wisdom of installing a revolving door for returning U.S. citizens who took on dual citizenship as a condition of serving a foreign government.

AIPAC, Fischer’s co-author of harmful U.S. economic policies on behalf of Israel, likely sees the Fischer appointment as an important test case to assess American tolerance for openly dual Israeli-American citizens running key U.S. federal agencies. In 2009 former AIPAC research director Martin Indyk, who was at the center of AIPAC’s research division during the FTA push, said that “the US-Israel Free Trade Agreement served as a wedge that opened up the Congress to free trade agreements across the world, including the NAFTA agreement.” Likewise, if Fischer can be “wedged” into the Fed, it begs the question of why former Israeli ambassador to the U.S. and historian Michael Oren could not someday lead the Near East division of the State Department. From AIPAC’s perspective, having qualified Israelis directly run key divisions of the U.S. Treasury such as Terrorism and Financial Intelligence, rather than indirectly through AIPAC-vetted appointees such as Stuart Levey and his hand-picked successor David Cohen, could probably boost the volume of taxpayer give-aways while improving coordination with Israel. Given AIPAC and Israel’s overly large influence on U.S. military initiatives in the region, the lobby may now feel the moment is right for appointing Israeli generals into the Joint Chiefs at the Department of Defense. This, AIPAC may well reason, would be much more convenient than constantly arranging visiting Israeli military and intelligence delegations that increasingly serve as sole briefers (rather than DoD or the American intelligence community) of members of the US Congress.

Soon after word of his Fed nomination spread, Fischer again made uncharacteristically harsh statements about Israel at an NYU Law School forum. As reported in The Jewish Week, Fischer told the audience that Israel is not seeking peace “to the extent that it should” and that it is “divided between those who want to settle the West Bank and those who seek peace.” Fischer – who had every chance to pull U.S. and Israeli financial levers that could have forced Israel out of occupied territories or forced compliance with International law – never did. Adding to suspicion that the statement was simply more empty “lip service” aimed at building popular support among Americans tired of war, was the reporter of the quote – former AIPAC lobbyist Douglas Bloomfield. In 1986 Bloomfield was grilled as a key suspect (pdf) in the 1985 FBI investigation of AIPAC for espionage during the FTA negations

If Americans were ever polled on it – and they never are – the majority who now object to increasing aid to Israel would also likely object to quasi-governmental and governmental positions being staffed by people who – by citizenship or sheer strength of identity politics – are primarily occupied with advancing Israeli interests rather than those of the United States. It is obvious that the real reason AIPAC and its economic luminaries such as Fischer never substantiate any of the advertised benefits the U.S.-Israel “special relationship” delivers to America in return for all of the costs is simple – there simply aren’t any. As greater numbers of Americans become aware that the entire “special relationship” framework is sustained by nothing more than Israel lobby campaign-finance and propaganda networks, the harder the lobby will have to work to forcibly wedge operatives like Fischer into positions where they can thwart growing public opposition – whether it takes the form of boycotts or grassroots opposition to the U.S. fighting more wars for Israel. In the very short term, Americans can only fight such undue Israel lobby influence by again – like during the drive to attack Syria – staging a mass action to demand their senators reject Stanley Fischer’s nomination.

  1. Oberdorfer, Don “Will U.S. Dollars Fix Israel’s Economy?” Washington Post, June 9 1985.
  2. Passell, Peter “Need Zionism Equal Socialism?” New York Times, July 2, 1992.
  3. Maital, Shlomo “Stanley Fischer: the man and the plan,” Jerusalem Report, February 7, 2005.
  4. BBC Monitoring Middle East, March 5, 2007.
  5. Keinon, Herb “Russia won’t back crippling sanctions.” Comment comes day before high-level US-Israel meeting on Iran. Jerusalem Post, February 25, 2010.
  6. Williams, Dan “Iran Stepping Up Its Atomic Efforts,” The Gazette, August 13, 2012.
  7. “Bank of Israel governor: Sanctions won’t collapse Iran economy.” Islamic Republic will likely find way to ‘keep economic life going,’ says Fischer in interview with CNBC, Jerusalem Post, October 24, 2012.
  8. Weisman, Steven R. “Wolfowitz Said to Push for Deal to Let Him Quit,” New York Times, May 17, 2007.
  9. “Fischer set to be tapped as vice chair of US Federal Reserve,” Times of Israel, December 11, 2013.

~

Grant F. Smith is the author of America’s Defense Line: The Justice Department’s Battle to Register the Israel Lobby as Agents of a Foreign Government.

December 26, 2013 Posted by | Corruption, Deception, Economics, Ethnic Cleansing, Racism, Zionism, Timeless or most popular, Wars for Israel | , , , | Leave a comment

Tax loophole saved $100 billion for richest Americans

341196_Sheldon Adelson
Zionist billionaire Sheldon Adelson
Press TV – December 21, 2013

The wealthiest Americans are exploiting a tax loophole to avoid paying billions in estate or gift taxes, contributing to the soaring income inequality in the United States, according to a report.

The loophole has cost the US government more than $100 billion since 2000, the Bloomberg reported.

The popularity of the tax avoidance maneuver, known as the Walton grantor retained annuity trust, or GRAT, shows how easy it is for the wealthy to bypass estate and gift taxes, the report said.

Even Richard Covey, the lawyer who pioneered the tax maneuver, which involves rapidly churning assets into and out of trusts, says it makes a mockery of the US tax code.

“You can certainly say we can’t let this keep going if we’re going to have a sound system,” Covey said.

Covey’s technique is one of several common devices that together make the estate tax system essentially ineffective as a brake on soaring economic inequality, says Edward McCaffery, a professor at the University of Southern California’s Gould School of Law.

Zionist billionaire Sheldon Adelson has given at least $7.9 billion to his heirs while legally avoiding about $2.8 billion in US gift taxes since 2010, according to calculations based on data in Adelson’s US Securities and Exchange Commission filings.

Shares of Adelson’s Las Vegas Sands Corp. are at a five-year high, making the gambling billionaire one of the world’s richest men in the world, worth more than $30 billion.

Since 2009, President Barack Obama and some Democratic lawmakers have made fruitless proposals to narrow the GRAT loophole.

Covey has suggested one reason for the lack of action is that wealthy campaign donors and politicians want to keep the loophole in place.

December 21, 2013 Posted by | Corruption, Economics, Progressive Hypocrite | , , , , | Leave a comment

Brazil ditches Boeing jets, grants $4.5 bln contract to Saab

‘NSA ruined it!’

RT | December 18, 2013

Brazil has rejected a contract for Boeing’s F/A-18 fighter jets in favor of the Swedish Saab’s JAS 39 Gripens. The unexpected move to reject the US bid comes amid the global scandal over the NSA’s involvement in economic espionage activities.

The announcement for the purchase of 36 fighters was made Wednesday by Brazilian Defense Minister Celso Amorim and Air Force Commander Junti Saito. The jets will cost US$4.5 billion, well below the estimated market value of around US$7 billion.

Saito said the development of the fighters will occur in conjunction with Embraer and other unspecified companies.

The 12 Mirage aircraft currently in use by the Brazilian Air Force (FAB) will be retired at the end of this year. They were acquired by Brazil in 2005. As it waits for the new fighters, the FAB will use the F5 style, which will stay viable up to 2025.

During a visit in Brasilia last week, French President Francois Hollande was accompanied by an entourage that included the president of Dassault Group, stirring speculation that the French jet manufacturer had the edge over Saab and Boeing.

Competition over which company would win the right to supply Brazil with the fighter jets began in the late 1990s during Fernando Henrique Cardoso’s administration, continued during Luiz Inácio Lula da Silva’s time in office and into current President Rousseff’s term. A FAB report in 2010 indicated a preference in Saab, though then-President Lula leaned toward the cheaper Dassault jet, Rafale.

Boeing was considered to have the inside track to win the contract earlier this year, yet revelations of intrusive surveillance of global officials’ communications, including those of Brazilian President Dilma Rousseff, by the US government’s National Security Agency led to distrust of the American company.

“The NSA problem ruined it for the Americans,” a Brazilian government source told Reuters.

The Chicago-based Boeing’s bid was rejected because of Saab’s better performance and cost of its aircraft as well as “willingness to transfer technology,” defense minister Celso Amorim said, as cited by Bloomberg.

‘Economic espionage’ fallout

Brazil is currently probing reports released by former NSA contractor Edward Snowden that the spy agency monitored the personal communications of President Rousseff and hacked into government ministries to gather information. Among the institutions targeted by NSA espionage were state oil giant Petrobras and the Ministry of Mines and Energy, contradicting claims by Washington that it did not engage in “economic espionage.”

Rousseff lambasted US spying on her country during the UN General Assembly in September, calling it a “breach of international law.” She further warned that the NSA surveillance, revealed since June, threatened freedom of speech and democracy.

“Meddling in such a manner in the lives and affairs of other countries is a breach of international law and as such it is an affront to the principles that should otherwise govern relations among countries, especially among friendly nations,” Rousseff said.

Just before her address at the UN summit, Rousseff canceled a state visit to Washington, scheduled to take place in October, because of indignation over spying revelations. Rousseff has stated she wants an apology from US President Barack Obama.

Snowden has promised to aid Brazil in a probe into the NSA’s spying program in the country.

“A lot of Brazilian senators have asked me to collaborate with their investigations into suspected crimes against Brazilian citizens,” said Snowden, in an open letter published by Brazilian paper Folha de S.Paulo. Snowden hinted in the letter that he may ask Brazil for asylum.

“The American government will continue to limit my ability to speak out until a country grants me permanent political asylum,” wrote Snowden.

The whistleblower is currently under temporary asylum in Russia. Brazil plans to host a global summit on internet governance in April 2014.

Brazil resident Glenn Greenwald, the former Guardian journalist renowned for publishing Snowden’s leaks, criticized on Wednesday European Union governments’ muted response to the revelations about the NSA’s mass surveillance apparatus. He also contradicted Washington’s claim that no economic espionage is involved amid NSA spying.

“What a lot of this spying is about has nothing to do with terrorism and national security. That is the pretext. It is about diplomatic manipulation and economic advantage.”

December 18, 2013 Posted by | Corruption, Economics, Full Spectrum Dominance | , , , , , | Leave a comment