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US Shale Gas No Threat to Russia’s Energy Dominance – Rosneft

RIA Novosti – October 6, 2013

MOSCOW – Russian state oil giant Rosneft has plans to extract oil in the next 100 years and sees no significant threat from the increase in shale gas production in the United States, CEO Igor Sechin told journalists Sunday.

“We have a 100 year work prospect,” Sechin said. “As for the shelf, we have no other alternative. In general, oil needs to be extracted,” he said adding that the US shale production is high-cost, which makes it impossible for export.

US media reports said this week the United States was expected to leapfrog Russia as the world’s largest producer of oil and natural gas this year thanks to a surge in US fuel production driven by technology that allows energy companies to tap into oil and gas in underground shale rock formations.

As US energy extraction and production have gone up, imports of natural gas and crude oil have fallen by 32 percent and 15 percent, respectively, in the last five years, the Wall Street Journal said.

Sechin said Rosneft, which has 1.5 percent of world’s explored reserves, was interested in international partnership and would adhere to high environmental standards.

He has accused the activists of the non-profit environmental organization Greenpeace, who were detained last month by Russian authorities after staging a “peaceful protest” against oil drilling in the Russian Arctic, of pursuing commercial interests.

“Look at those who pay them, who is their sponsor,” Sechin told journalists.

Rosneft currently holds 46 licenses for Russian offshore deposits worth 42 billion tons of oil equivalent. The company has signed agreements on cooperation with US oil and gas giant Exxon Mobil, Italy’s Eni and Norway’s Statoil.

October 6, 2013 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , , , | Leave a comment

US- Venezuela Relations: A Case Study of Imperialism and Anti-Imperialism

By James Petras :: 10.05.2013

Introduction

US relations with Venezuela illustrate the specific mechanisms with which an imperial power seeks to sustain client states and overthrow independent nationalist governments. By examining US strategic goals and its tactical measures, we can set forth several propositions about (1) the nature and instruments of imperial politics, (2) the shifting context and contingencies which influence the successes and failures of specific policies and (3) the importance of regional and global political alignments and priorities.

Method of Analysis

A comparative historical approach highlights the different policies, contexts and outcomes of imperial policies during two distinct Presidential periods: the ascendancy of neo-liberal client regimes (Perez and Caldera) of the late 1980’s to 1998; and the rise and consolidation of a nationalist populist government under President Chavez (1999-2012).

During the 1980’s and 1990’s US successes in securing policies favorable to US economic and foreign policy interests under client rulership fixed, in the mind of Washington, the optimal and only acceptable model and criteria for responding (negatively) to the subsequent Chavez nationalist government.

US policy to Venezuela in the 1990’s and its successes, were part and parcel of a general embrace of neo-liberal electoral regimes in Latin America. Washington and its allies in the International Monetary Fund (IMF), the World Bank (WB) and the Inter-American Development Bank (IDB) promoted and supported regimes throughout Latin America which privatized and de-nationalized over five thousand public enterprises in the most lucrative economic sectors. These quasi-public monopolies included natural resources, energy, finance, trade, transport and telecommunications. Neo-liberal client regimes reversed 50 years of economic and social policy, concentrated wealth, deregulated the economy, and laid the basis for profound crises, which discredited neo-liberalism. Continent-wide popular uprisings and regime changes, led to nationalist populist governments.

The historical-comparative approach allows us to analyze Washington’s response to the rise and demise of neo-liberal clients and the subsequent ascendency of populist-nationalism and how regional patterns and changes influence the capacity of an imperial power to intervene and attempt to re-establish its dominance.

Conceptual Framework

The key to understanding the mode and means of imposing and sustaining imperial dominance is to recognize that Washington combines multiple forms of struggle, depending on resources, available collaborators, opportunities and contingencies.

In approaching client regimes, Washington combines military and economic aid to repress opposition and buttress economic allies by cushioning crises. Imperial propaganda via the mass media provide political legitimacy and diplomatic backing, especially when client regimes engage in gross human rights violations and high level corruption.

Conversely when attempting to weaken or overthrow a nationalist-populist regime, the empire will resort to multiple forms of attack including (1) corruption (buying off government backers) (2) funding and organizing opposition media, parties, business and trade union organizations, (3) organizing and backing disloyal military officials to violently overthrow the elected government (4) support employers’ lockouts to paralyze strategic sectors of the economy (oil)(5) financing referendums and other ‘legal mechanisms’ to revoke democratic mandates, (6) promoting paramilitary groups to destabilize civil society and sow public insecurity and undermine agrarian reforms; (7) finance electoral parties and non-governmental organizations to compete in and delegitimize elections; (8) engage in diplomatic warfare and efforts to prejudice regional relations; (9) establish military bases in neighboring countries, as a platform for joint military invasions.

The multi-prong, multi-track policies occur in sequence or are combined, depending on the opportunities and results of earlier tactical outcomes. For example, while financing the electoral campaign of Capriles Radonski in April 2013, Washington also backed violent post-election assaults by rightist thugs attempting to destabilize the government.

Secretary of State Kerry while pursuing an apparent effort to re-open diplomatic relations via negotiations simultaneously backed a highly inflammatory declaration by Samantha Power, US United Nations representative, vowing aggressive intrusion in Venezuela’s domestic politics.

US-Venezuelan relations provide us with a case study that illustrates how efforts to restore hegemonic politics can become an obstacle to the development of normal relations with an independent country. In particular, the ascendancy of Washington during the “Golden Age” of neoliberalism in the 1990’s, established a fixed ‘mind set’, which was incapable of adapting to the changed circumstances, of the 2000’s, a period witnessing the demise and discredit of ‘free market’ client politics. The rigidity derived from past success led Washington to pursue a ‘restoration politics’ under very unfavorable circumstances, involving military, clandestine and other illicit policies with very improbable possibilities of success.

The unfavorable outcome of US efforts to destabilize a democratically elected nationalist popular regime in Venezuela occurred when Washington was heavily engaged in multiple, prolonged wars and conflicts in several countries (Iraq, Afghanistan, Pakistan, Somalia, and Libya). This validates the hypothesis that even a global power is incapable of waging warfare in multiple locations at the same time.

Given the shift in world market conditions, including the increase in commodity prices, (especially energy), the relative economic decline of the US and rise of Asia, Washington lost a strategic economic lever – market power – in the 2000’s, a resource which it possessed during the previous decade.

Given the shift in political power in the region, the rise of popular-nationalist governments in most of Latin America, Washington lost regional leverage to ‘encircle’, ‘boycott’ and intervene in Venezuela. Even among its few clients, like Colombia, Washington could do no more than create ‘border tensions’ rather than a joint military attack.

Comparative historical analysis of the strategic changes in international and regional politics, economies, markets and alignments provides a useful framework for interpreting US-Venezuelan relations, especially the successes of the 1990’s and the failures of the 2000’s.

US-Venezuela Patron-Client Relations 1960’s -1998

During the 40 year period following the overthrow of the Dictator Perez Jimenez (1958) and prior to the election of President Hugo Chavez (1998) Venezuela’s politics were marked with conformity to US political and economic interests on all strategic issues. Venezuelan regimes followed Washington’s lead in ousting Cuba from the Organization of American States, breaking relations with Havana and promoting a hemispheric blockade. Caracas followed Washington’s lead during the cold War, backed its counter-insurgency policies in Latin America. It opposed the democratic leftist regime in Chile under President Allende, the nationalist governments of Brazil (1961-64) and Peru (1967-73), Bolivia (1968-71) and Ecuador (in the 1970’s). It supported the US invasions of the Dominican Republic, Panama and Grenada. Venezuela’s nationalization of oil (1976) provided lucrative compensation and generous service contracts with US oil companies, a settlement far more generous than any comparable arrangement in the Middle East or Latin America.

During the decade from the late 1980’s to 1998, Venezuela signed off on draconian International Monetary Fund programs, including privatizations of natural resources, devaluations and austerity programs which enriched the Multinational Corporation (MNC), emptied the Treasury and impoverished the majority of wage and salary earners. In foreign policy Venezuela aligned with the US, ignored new trade openings in Latin America and Asia and moved to re-privatize its oil, bauxite and other primary resources. President Perez was indicted in a massive corruption scandal. Implementation of a US-IMF austerity program led to a massive popular uprising and the massacre of over a thousand protestors. The subsequent Caldera regime presided over the triple scourge of triple digit inflation, 50% poverty rates and double digit unemployment.

Venezuela touched bottom at the peak of US hegemony in the region. The inverse relation was not casual, as Venezuela under Caldera followed austerity, open markets and US centered policies which undermined any public policies to revive the economy. Moreover, world market conditions were unfavorable, as oil prices were low and China was not yet a world market power.

US and the Rise of Chavez: 1998-2001

The US viewed the Venezuelan elections of 1998 as a continuation of the previous decade despite significant political signs of changes. The two parties, which dominated and alternated in power, the Christian Democratic COPEI, and the social democratic Democratic Action Party, were soundly defeated by a new political formation headed by a former military officer, Hugo Chavez, who led an armed uprising six years earlier and who had engaged in a massive grass roots campaign, attracting radicals, revolutionaries, opportunists and defectors from the two major parties.

Washington’s successes over the previous decade, the entrenched ascendancy of neo-liberalism and the advance of a regional US free trade agreement blinded the Clinton regime from seeing (1) the economic crisis and discredit of the neo-liberal model; (2) the deepening social and economic polarization and hostility to the IMF-USA among broad sectors of the class structure; (3) the decay and discredit of its client political parties and regimes. Washington tended to write-off Chavez’s promises of a new constitutional order and new “Bolivarian” foreign and domestic policies which included promises of nationalist-populist reforms, as typical Latin campaign rhetoric. The general thinking in the State Department was that Chavez was engaging in electoral demagogy and that he would “come to his senses” after taking office. Moreover Washington’s Latin Americanists believed that the mix of traditional politicians and technocrats in his motley coalition would undermine any consequential push for leftist radical changes.

Hence Washington under Clinton did not adapt a hostile position during the first months of the Chavez government. The watchword among the Clintonites was “wait and see” and count on long-standing ties to the major business associations, friendly military officials, and corrupt trade union bosses and oil executives, to check or block any new radical initiatives emanating from Congress or the Executive. In other words Washington counted on using the permanent state apparatus to counter the electoral regime.

Chavez recognized the institutional obstacles to nationalist socio-economic reforms and immediately called for constitutional changes, convoked elections for a constituent assembly, which he won handily. Washington’s growing concerns over the possible consequences of new elections were tempered by two factors: (1) the mixed composition of the elected assembly (old line politicians, moderate leftists, radicals and ‘unknowns’); (2) the ‘moderate’ appointments to the Central Bank and the orthodox economic policies pursued by the finance and economic ministry. Prudent budgets, fiscal deficits and balance of payments were at the top of the agenda.

The new constitution, included clauses favoring a radical social and nationalist agenda, and led to the defection of some of the more conservative early supporters aligned with Washington which in turn signaled the first overt signs of US opposition. Veteran State Department officials debated whether the new radical constitution would form the bases of a leftist government or whether it was standard symbolic fare, rhetorical flourishes to be heavily discounted, merely symbolic changes by a populist president to satisfy the Latin temperament in hard times but not likely to be followed by substantive reforms. The hard liners linked to the exile Cuba lobby argued that Chavez was a “closet” radical, who was preparing the way for more radical ‘communist’ measures. In fact Chavez policies were both moderate and radical. His political zig-zags, reflected his efforts to navigate a moderate reform agenda without alienating the US and the business community on the one hand, and on the other hand he sought to retain and respond to his mass base among the impoverished slum dwellers (rancheros’) who voted for him.

Strategically Chavez succeeded in creating a strong political institutional base in the legislature, civil administration and military which could (or would) approve and implement his national-populist agenda. Unlike Chilean Socialist President Allende, Chavez first consolidated his political and military base and then proceeded to socio-economic changes.

By the end of 2000, Washington moved to regroup its internal client political forces into a formidable political opposition. Chavez was too independent, not easily controlled, and most important moving in the “wrong direction”, away from a blind embrace of neo-liberalism and US centered regional integration. In other words while Chavez was still well within the parameters of US hegemony, the direction he was taking portended a possible break.

The Turning Point: Chavez Defies the ‘War on Terror’ 2000-2001

The decade beginning the new millennium was a tumultuous period which played a major role in defining US-Venezuelan relations. Several inter-related events polarized the hemisphere, weakened Washington’s influence, undermined collaborator client regimes and led to a major confrontation with Venezuela.

First, the neo-liberal model fell into deep crises throughout the region; discrediting the US backed clients in Bolivia, Argentina, Ecuador, Brazil and elsewhere. Secondly, repeated major popular uprisings occurred during the crises and populist-nationalist politicians came to power, rejecting US-IMF tutelage and US centered regional trade agreements. Thirdly, Washington launched a global “war on terror”, essentially an offensive military strategy, designed to overthrow adversaries to US domination and Israeli supremacy in the Middle East. In Latin America, Washington’s launch of the “war on terror” occurred precisely at the high point of crises and popular rebellion, undermining any regional support. Fourthly, beginning in 2003, commodity prices skyrocketed, as China’s economy took off, creating lucrative markets stimulating high growth for the new left of center regimes.

In this vortex of change, President Chavez rejected Washington’s “War on Terror”, arguing against “fighting terror with terror”. By the end of 2001, Washington dispatched a top State Department official, Marc Grossman, to Caracas where he bluntly threatened dire reprisals – thinly veiled destabilization measures – if Caracas failed to fall-in with Washington’s attempt to reimpose global hegemony. Chavez dismissed Grossman and realigned with the emerging Latin American nationalist populist consensus. In other words Washington’s aggressive militarist posture polarized relations, increased tensions and, to a degree, radicalized Venezuela’s foreign policy.

Washington’s interventionary machinery went into high gear: Ambassador Shapiro held several meetings with FEDECAMARAS (the business association) and the trade union bosses of the CTV. The Pentagon and the Southern Command met with client military officials. The State Department increased contacts and funding for opposition NGO’s and right-wing street gangs. The date of the coup was set for April 11, 2002. Meanwhile, the Chavez government began to assess its resources. Loyalist military groups especially in the armored battalions and paratroops were contacted.

Local neighborhood committees emerged and set out to mobilize the poor around a more radical social agenda and to defend the government, as the US backed opposition escalated street fighting. The coup was welcomed and openly supported by Washington and its semi-official mouthpiece the New York Times, and the rightwing Spanish Prime Minister Aznar. The illicit regime moved quickly to arrest President Chavez, dismiss Congress, dissolve political parties and declare a state of emergency. The masses and leading sectors of the military quickly and massively responded: millions of poor Venezuelans descended from the ranchos and amassed before Miraflores, the Presidential Palace, demanding the return of their elected President and repudiating the coup. The constitutionalist military led by an elite paratroop battalion threatened a full scale military assault. The coup makers, politically isolated and militarily outgunned, surrendered. Chavez returned to power. The US policy of regime change to restore hegemony was defeated; important assets were forced into exile and purged from the military. Washington played a risky card and lost on several fronts. First of all US support for the coup, strengthened the Bolivarian anti-imperialist sectors of Chavez’s movement. Chavez discarded illusions of “reaching an accommodation” with Washington. Secondly, the loss of key military assets weakened the possibility of Washington launching a future coup. Thirdly, the complicity of the business groups weakened their role in influencing Chavez’s economic policies, forcing him toward a more statist economic strategy. Fourthly, the mass mobilization of the poor to restore democracy pressured the government to increase social spending on welfare programs. Anti-imperialism, social welfare and national security concerns led Chavez toward strategic ties with Cuba, as a natural ally.

Washington’s escalation of aggression and overt commitment to regime change altered the entire relationship to one of permanent hostility. Spurred on by its backing of a failed coup, Washington resorted once again to ‘direct action’, backing a “boss’s lockout” of the strategic oil industry led by “client assets” among the executives and sectors of the petroleum workers union.

Washington put into practice in Venezuela the global militarization of US foreign policy. Under the subterfuge “War on Terror” formula for global intervention, (which included the invasion of Afghanistan, 2001) and later the war against Iraq (2003) imperial policymakers plunged ahead with new aggressive policies.

The pretext for aggression against Venezuela was not directly linked to oil or Chavez’s appeal for Latin American integration. The trigger was Chavez’s rejection of Bush’s world view of global empire conquered by force of arms and sustained by collaborator vassal states. The oil conflicts – Chavez nationalization of US oil concessions and his appeal for regional integration excluding the US and Canada, were a result of and in response to US overt aggression. Prior to the US backed April 2002 coup and the oil-executives lockout of December 2002 – February 2003, there were no major conflicts between Chavez and US petroleum companies; Chavez’s conception of Bolivarian unity of all Latin American states was a “vision” not a concrete program for action. Chavez’s takeover of US oil concessions was a defensive political move to eliminate a political adversary controlling the strategic export and revenue sectors. He did not intervene against European oil companies. Likewise, Chavez’s move to promote regional organizations flowed from his perception that Venezuela required closer ties and supportive relations in Latin America to counter US imperial aggression.

In other words US empire builders used (and sacrificed) economic assets to restore hegemony via military means. The military and strategic dimensions of the US Empire took precedence over Big Oil. A pattern evident in all of its subsequent imperial endeavors in Iraq, Libya and Syria and its severe economic sanctions against Iran. The same hegemonic priorities were evident in Washington’s intervention in Venezuela.

Contrary to some theorists of imperialism, who argue that imperialism expands via economic “dispossession”, recent history of US Venezuela relations demonstrates that 21st century US imperialism grows via political intervention, military coups and by converting economic collaborators into political agents willing to sacrifice corporate wealth to secure imperial military-political domination.

The decision by imperial policymakers to overthrow Chavez was based on his opposition to Washington’s global military strategy. The White House thought it had strong assets in Venezuela: the mass media, two major opposition parties, the principle business federation (FEDECAMARAS), the official trade union bureaucracy, sectors of the military and the church hierarchy … Washington did not count on the unorganized masses and popular movements with powerful loyalty and affection for President Chavez. Nor did imperial strategists recognize that strategic military units like the paratroops retained national, personal and political ties with the democratically elected President.

The rapid restoration of Chavez to power (48 hours) was the first blow to Washington’s restorationist pretentions. The second was the defeat of the US backed oil executives lockout. Washington counted on its close ties with the senior executives of the state oil company (PDVS) and the heads of the oil workers union. Washington failed to take account of the minority of executives and close to half of the oil workers who opposed the lockout and the fact that Latin American oil producers would supply Chavez and break the lockout.

The twin defeats, the military-business coup and the bosses’ lockout had a profound impact on US-Venezuelan relations. The US lost strategic internal assets – business and trade union elites fled to exile or resigned. Pro-US oil executives were replaced by nationalists. Moreover, Washington’s direct imperial intervention radicalized the Chavez government, which moved decisively from conciliation to confrontation and opposition. Venezuela adapted to the new active radical mood of the country by launching a nationalist, populist agenda and actively promoting Latin American integration. Venezuela launched UNASUR, ALBA, PetroCaribe and scuttled a US centered free trade treaty.

The loss of key assets undermined Washington’s direct action military strategy. The White House turned to is remaining political and social assets channeling funds to the electoral parties and especially to so-called non-governmental organizations (NGOs). Washington via the National Endowment for Democracy and other “front groups” bankrolled a recall referendum which was decisively defeated, demoralizing the right-wing electorate and weakening remaining US assets.

Having lost on the military, economic and electoral front, Washington sought to delegitimize the government by boycotting Congressional elections, leading to the final debacle. Pro-Chavez parties swept the election, gained an overwhelming majority, and proceeded to approve all of the government’s nationalist-social reform agenda. The US backed opposition lost all institutional leverage.

The US imperial failures between 2002-2005 did not merely reflect mistaken policies but had a deeper cause: the incapacity to make a proper estimate of the correlation of forces. This strategic failure led it to continue to throw its shrinking domestic assets into conflict with less resources and backing. Despite repeated defeats, Washington failed to realize that popular power and nationalist allegiances within the military could successfully counter US business-military intervention. Political hubris informed by military-driven imperialist ideology blinded Washington to the on-the ground realities that Chavez possessed popular support and was backed by nationalist military officers. Acting under increasingly unfavorable conditions, but desperate for some political ‘victory’, Washington plunged from one adventure to another, without reflecting on lost assets or declining opportunities. It failed to take account of decisive political shifts in Latin America and favorable conditions in the world economy for petrol exporters. To support a recall referendum in the face of double-digit growth, a radicalized mass public and booming commodity prices, was the height of imperial imbecility.

Imperial Policy During the Commodity Boom 2004-2008

With virtual no active assets of consequence, Washington turned toward an ‘external strategy’ linked to its only loyal collaborator, the death squad narco-President Alvaro Uribe of Colombia. Washington secured seven military bases, airfields, Special Forces missions and a platform for cross border intrusions. The strategy was to launch a joint intervention based on the pretext of Venezuelan links to the FARC guerillas.

However, full scale imperial warfare in Iraq, a prolonged war in Afghanistan, threatened conflicts with Iran, low intensity warfare in Somalia, Yemen and Pakistan, weakened Washington’s capacity to engage in a new prolonged war in Venezuela. US intervention would be opposed by every country in the region. Colombia was not willing to go it alone especially with a full-scale guerrilla war internally.

Because of Venezuela’s trade surplus and high export revenues traditional Washington financial levers like the IMF and World Bank were inoperative. Likewise Venezuela signed multi-billion dollar military trade agreements with Russia, undermining a US arms sales boycott. Trade agreements with Brazil and Argentina lessened Venezuela’s dependence on US food imports.

All non-US MNC in the petroleum sector continued operations, ignoring the conflicts with US companies. The government’s selective nationalization program and moderate increases in taxes and royalty payments weakened EU support for the US, given the high price of oil (exceeding $100 dollars a barrel). Chavez’s left-turn was well funded. The massive allocation of oil revenues for a wide-range of social programs, ranging from subsidized food, housing and welfare, and free health and educational programs, led to the massive reduction of poverty and unemployment and secured an electoral majority. Washington’s “pivot to the Middle East” led to the US becoming bogged down in a series of prolonged wars, eroding Washington’s quest for regional power.

More significantly, the State Department and Pentagon’s Latin Americanists remained tied to the 1990’s paradigm of free markets and vassal states at a time when the most important countries in the region were moving toward greater independence in trade, greater intra-regional integration and social inclusion. Unable to adapt to the new regional realities, Washington witnessed the region’s rejection of US centered free trade accords. China displaced, the US as the regions’ main trading partner. The loss of collaborator military elites as coup-makers for empire, further eroded imperial reach. Coup efforts in Bolivia and Ecuador failed and radicalized political relations toward the US.

However, Washington was not without partners: bilateral trade agreements were signed with Chile, Panama, Colombia and Mexico. The Pentagon engineered a coup in Honduras. The National Security Agency engaged in major cyber spying operations in Brazil, Mexico and the rest of the continent. The White House poured over six billions into Colombia’s armed forces as a proxy for the US military. These “gains” had little impact. US support for the Honduran military coup displaced a Venezuelan ally in ALBA but led to Washington’s diplomatic isolation and discredit throughout Latin America. Even Colombia, its closest client, opposed the coup. US military support for Colombia temporarily contributed to border tensions with Venezuela but with the election of a new President (Santos), Colombia moved toward reconciliation and peaceful coexistence with Venezuela. Under President Uribe trade fell to less than $2 billion; with Santos’ conciliatory policy it rose to nearly $10 billion.

Washington’s external strategy was in shambles. Cyber spying by the NSA was exposed by Edward Snowden and resulted in greater animosity toward Washington, especially from Brazil, which cancelled a White House visit and allocated $10 billion to fund a nationally controlled IT system. Imperial policy makers relied exclusively on interventionist strategies which depended on military-intelligence operations, an approach which was out of touch with the new configuration of power in Latin America. In contrast, Venezuela deepened its economic ties with the new regional and global economic power centers, as the foundations for its independent policies.

Chavez and President Maduro’s regional strategy was seen in Washington as a security threat rather than an economic challenge to US hegemony. Venezuela’s success in promoting bilateral ties, even with US clients like Colombia and Mexico, and several English-speaking Caribbean islands, undermined efforts to ‘encircle and isolate’ Venezuela. Caracas success in financing and backing multi-lateral regional economic and political organizations – that exclude the US– in South America and the Caribbean reflects the power of oil diplomacy over saber rattling. Venezuela’s promotion of PetroCaribe, aligned a number of neo-liberal and center-left regimes in the Carribbean, previously under US hegemony, with Venezuela. In exchange for subsidized oil prices, medical aid and interest free loans, they rejected US intrusions. ALBA brought together several center-left governments, including Bolivia, Ecuador and Nicaragua into a common political bloc opposing US interventionism.

ALBA firmly rejected coups in Latin America and Washington’s overseas wars in Libya, Syria and elsewhere. Venezuela successfully joined the powerful economic bloc, MERCOSUR, enhancing its trade with Brazil, Argentina and Uruguay. Venezuela’s strategic alliance with Cuba (oil for medical aid) enormously improved Caracas capacity to implement its free health program, an important welfare reform which solidified Chavez and Maduros’ electoral base among the poor and undermined Washington’s funding of NGO “grassroots” subversion in poor neighborhoods. Venezuela successfully undercut Bush and Obama’s efforts to use Colombia as a “military proxy” through a historic peace and reconciliation agreement with President Santos. Colombia agreed to end its cross-border paramilitary and military incursions and support for US destabilization operations in exchange for Venezuela closing guerrilla sanctuaries, reopening trade relations and encouraging the FARC to enter into peace negotiations with the Santos regime. Santos’ embrace of Venezuela’s trade and diplomatic ties, eroded Washington’s ‘outside military strategy’ and forced imperial policy-makers to emphasize relying on internal clients engaged in electoral politics and ‘direct action’ (sabotage of electoral power grids, hoarding of essential foodstuff).

While Washington’s imperial rhetoric emphasizes Venezuela as a “security threat” to the Hemisphere, no other country subscribes to that doctrine. Latin America sees Caracas as a partner in integration and a lucrative market. Moreover, US diplomacy does not follow trade: only Mexico is more dependent on the US oil market than Venezuela. Venezuela’s dependence on the US market for oil is in the process of changing. In 2013 Venezuela signed off on a $20 billion dollar investment and trade deal with China to exploit “heavy oil” in the Orinoco Basin. Venezuela’s trade ties to the US contrast with the hostile diplomatic relations which have led to the mutual withdrawal of ambassadors and continuing US gross interference in Venezuela’s electoral process. For example in March 2013, two US military attaches were expelled for attempting to recruit Venezuelan military officials. Later the same year in September, three Embassy officials were expelled for plotting destabilization activity with members of the far right opposition.

Imperialism’s Multi-Track Opposition

US hostility toward Venezuela is based on three levels of conflict. At the country-level, Venezuela marks out a new development paradigm which features public ownership over the free market, social welfare over multi-national oil profits, and popular power over elite rule. At the regional level, Venezuela promotes Latin American integration over US centered Latin American Free Trade Agreements; anti-imperialism over “pan-Americanism”; foreign aid based on reciprocal economic interests; and non-intervention as opposed to US military pacts, narco-military intrusions and military bases.

At the global-level Venezuela has rejected the US invasions of Afghanistan and Iraq, ignored US trade sanctions toward Iran, opposed Washington and NATO’s bombing of Libya and proxy invasion of Syria. Venezuela condemns Israeli colonization and annexation of Palestine. In other words Venezuela upholds national self-determination against US military driven imperialism.

Chavez and Maduro pose a successful alternative to neo-liberalism. Venezuela demonstrates that a highly globalized, trade dependent economy is compatible with an advanced welfare program. The US, on the other hand, as it “globalizes”, is eliminating welfare programs to finance imperial wars. Venezuela is telling the US public that a market economy and large social welfare budget are not incompatible. This paradigm conflicts with the message from the White House. Moreover, US Empire builders have no economic initiatives to counter Venezuela’s regional and global alliances. Unlike the 1960’s when President Kennedy proposed the “Alliance for Progress” involving trade, aid and reforms to counter the revolutionary appeal of the Cuban revolution. In contrast Bush and Obama “offer” costly military and police co-operation and warmed over neo-liberal clichés accompanied by market constraints.

Despite severe diplomatic setbacks, regional isolation, the loss of a military platform, and a commodity driven economic boom in Venezuela, Washington persisted in its efforts to destabilize Venezuela. Beginning in 2007, imperial strategy re-focused on electoral processes and destabilization. The first success was the defeat by less than 1% of Chavez constitutional amendments in December 2007 right after a substantial Presidential victory. Apparently the overtly socialist constitution was too radical for a sector of the Venezuelan electorate.

From 2008 onward Washington pumped large sums into a variety of political assets including NGOs and middle class university students’ organizations engaged in agitation and street demonstrations. The goal was to exploit local grievances. US funding of proxies promoted extra-parliamentary, destabilization activity, disrupting the economy while blaming the government for public insecurity and covering up opposition violence.

Business owners were encouraged to engage in hoarding in order to provoke shortages and popular discontent; the media blamed state “inefficiency”. Opposition political parties received financial backing, on condition that they unified and ran on a single slate in contesting elections and questioned the legitimacy of elections (claiming ‘fraud’) after their defeat.

In summary US efforts to restore hegemony relied on surrogates, which ran the gamut from violent paramilitary groups, NGO’s, political parties, elected officials and manufacturing and commercial executives, linked to the production and distribution of essential consumer goods.

Washington’s shifts in policies, from internal violence (coup of 2002, oil lockout of 2002-03), and external military threats (2004-2006), to a return to internal electoral politics and business destabilization campaigns reflects attempts to overcome failed policies without surrendering the strategic objective of restoring hegemony via overthrowing the elected government (“regime change” in the imperial lexicon).

Seven Keys to Imperial Politics: An Overview

Washington’s decade and a half efforts to restore hegemony and reimpose a client regime revolve around imperial capacities to secure seven strategic goals.

1) Imperial capacity to successfully overthrow a nationalist government revolves around possessing a unified client military command. Chavez ensured that he retained loyal strategic military sectors able to counter the imperial proxies.

2) Imperial capacity to militarily intervene depends on not being tied down in ongoing serial wars and on securing regional partners willing to jointly engage. Neither condition was present. US imperial policy concentrated its military forces in the Middle East and South Asia, in prolonged wars which created public antipathy to launching another war in Venezuela. The attempt to convert Colombia into an active ally in war failed because of the economic trade losses incurred by the Colombian business elite in the run-up to border skirmishes. Washington offered little or nothing in economic compensation or alternative markets for Colombian exporters since most of US “aid” (Plan Colombia) involved military transfers and sales.

3) The imperial destabilization campaign ran through strategic assets because of premature, ill-calculated and high risk operations in which one failure led to even higher risk interventions in an effort to cover-up a bankrupt strategy. The US backed coup of 2002 was clearly based on poor intelligence and underestimation of President Chavez’s support. Washington failed to appreciate Chavez’s astute institutional changes, in particular the promotion of loyalist sectors of the armed forces. Blinded by ideological blinders, Washington counted on its business allies and trade union bureaucrats to “turn-out the crowds” to back the junta and provide a legal cover. In the face of serious losses resulting from the subsequent purging of client elites in the military and business associations, Washington unleashed its client oil executives and trade union officials to mount an oil lockout, which lacked backing among the loyalist military. Over time the shutdown of oil production and delivery, alienated wide swathes of the business community and consumers, suffering from the absence of transport and distribution of commodities. The defeat of the oil lockout resulted in the purge of over ten thousand US clients among senior and middle management and the reorientation of the PDVSA (the state oil company) into a formidable political instrument funding Venezuela’s comprehensive social welfare programs.

Increases in social spending in turn provided a powerful boost in Chavez’s electoral support and consolidated his mass base among the vast majority of the poor. Imperial strategists then converted their extra-parliamentary defeats into an electoral rout by launching a referendum in the face of the Chavez offensive and suffered a decisive and demoralizing defeat. To make a virtue of multiple disasters, Washington backed a boycott of Congressional elections which resulted in near unanimous Chavista control of Congress and a mandate to legally approved Chavez executive prerogatives. Chavez used executive decrees to promote an anti-imperialist foreign policy without even minimum opposition.

4) Imperial ‘neo-liberal’ and ‘war on terror’ ideological warfare was launched in Latin America against Venezuela (2001 onward) at the precise moment of widespread revolts, uprisings and client regime changes throughout the region. The continental rebellion against US centered free-market regimes, resonated with Chavez’s nationalist-populism. As a result Washington’s ideological appeals fell on arid soil. The dogmatic embrace of a failed development strategy and the continued embrace of hated clients ensured that Washington’s ideological war against Venezuela would boomerang: instead of isolating and encircling Venezuela, it led to greater Latin American regional solidarity and the isolation of the US. Instead of dumping discredited clients and attempting to adapt to the changing anti-neo-liberal climate, Washington, for internal reasons (the ascent of Wall Street), persisted in pursuing a self-defeating propaganda war.

5) Imperial efforts at the restoration of hegemony required an economic crises, including low world market prices and weak demand for commodities, declining incomes and employment, severe balance of payment problems and fiscal deficits to provide leverage to destabilize targeted regimes. None of these conditions were present in Venezuela. On the contrary commodity demand and prices boomed. Venezuela grew by double-digits. Unemployment and poverty sharply declined. Easy and available consumer credit and increased public spending greatly expanded the domestic market. Free health and education and public housing programs grew exponentially. In other words global macro-economic and local social conditions favored the anti-hegemonic perspectives of the government. US and clients’ efforts to demonize Chavez failed. Instead of embracing popular programs and focusing on problems of implementation and mismanagement, Washington embraced local political clients associated with the deep socio-economic crises of the ‘lost decade’ (1989-1999) prior to Chavez assent to power. Imperial critics in Latin America easily refuted Washington’s attacks on the Chavez development model by citing favorable employment, income, purchasing power and living standards compared to the previous neoliberal period

6) Imperial policy makers emphasized global ideological-military confrontation at a moment when leaders and public opinion in Latin America were thinking and pursuing market opportunities. The “War on Terror”, Washington’s hobby horse for global supremacy, had minimum support; China’s demand for Latin America commodities led to the Asian country displacing the US as the major market for Latin exports. Global militarism was not conducive to restoring hegemony when the Latin consensus pivoted around markets, poverty reduction, democracy and citizen participation. During past decades US global militarism resonated in Latin America when it was ruled by military regimes. Washington’s attempt to resort to the earlier period of military rule by backing a military coup in Honduras was soundly denounced throughout the continent, not only by center-left governments but even by conservative civilian regimes, fearful of a return to military rule at their expense.

7) The change from a Republican to a Democratic regime in Washington, did not result in any substantive change in imperial policy toward Venezuela or Latin America. It only led to the entrée of the “double discourse”. Obama spoke of a “new beginning”, ‘new overtures’ and ‘shared values’. In practice Washington proceeded to military provocations from its bases in Colombia, backed the Honduras military coup, supported a violent destabilization campaign in April 2013 following the defeat of its Presidential candidate Henrique Capriles Radonski by the Chavista, Nicholas Maduro. The Obama regime was the only one in the hemisphere (and the OECD) which failed to recognize the legitimacy of the Presidential election results. Political changes in imperial countries, from a liberal to a conservative president (or vice versa), does not in any way affect the deep imperial state, its military interests or strategies. President Obama’s resort to the double discourse, to talk diplomatically and act militarily, as a mode of hegemonic rule, quickly lost its attraction and effectiveness even among centrist-post-neo-liberal leaders.

Imperialism is not simply a ‘policy’ it is a structure, with a powerful military aid financial component which depends on strategically placed collaborators and supporters in targeted countries, operating in favorable (crises ridden) environments. Imperialism flourishes when its military and diplomatic approach serves economic interests which benefit the ‘home market’ and rewards local collaborators. In the second decade of the 21st century, the predominance of ‘military driven imperialism’ bleeds the home economy, impoverishes the targeted society and depresses living standards. Destructive wars even weaken client elites.

Latin American and Venezuelan development oriented leaders look elsewhere, to newly emerging economic powers with growing markets. They pursue economic ties which are not accompanied by military and security threats of intervention. Chinese investments are not accompanied by military missions and massive spy networks like the CIA, DEA and NSA posing armed threats to national sovereignty.

The Imperial Dynamic and the Radicalization of Venezuelan Politics

Imperial intervention can have multiple and contrasting effects. It can intimidate a nationalist government and force it to renege on its electoral promises and revert to a liberal agenda. It can lead to an accommodation to imperial foreign policies and force a progressive government to moderate domestic reforms. It can lead to concessions to imperial interests, including military bases, concessions to extractive capital including the dispossession of local producers to facilitate capital accumulation. Covert or overt intervention can also radicalize a moderate reformist government and force it to adopt anti-imperialist and socialist measures as defensive strategy. Over time incremental changes can become the bases for a pro-active radical leftist agenda.

The range of systemic responses illustrates the analytical weakness of the so-called “center-periphery” framework, which lumps together (a) disparate political, social and economic internal configurations, (b) opposing strategies and responses to imperialism and (c) complex international relations between imperial and nationalist regimes. The polar opposite responses and political-economic configurations of the US and China (so-called “centers”) to Venezuela further illustrates the lack of analytical utility of the so called “world system” approach in comparison with a class anchored framework.

The imperial dynamic, the drive by Washington to reassert hegemony in Venezuela by overthrowing the nationalist regime, had the unintended consequence of radicalizing its policies, consolidating its power and furthering the spread of anti—imperialist programs throughout the region. In the first years of the Chavez government, roughly between 1999-2001, Venezuela pursued largely orthodox policies, friendly relations with Washington, while espousing a Bolivarian vision. In practice Chavez did not put into practice his vision, nor provide any resources to fund a regional organization that excluded the US.

Washington, at this time, retained ties to its clients in the opposition. It sought to influence a motley collection of opportunist politicos who jumped on the Chavez bandwagon, to counter the left political sectors of the coalition government.

The first break in peaceful co-existence was precipitated by Washington’s big push for global power via the so-called “War on Terror” doctrine. Its ultimatum that Chavez support its military offensives targeting Afghanistan and Iraq or face retaliation provoked the break. Chavez resisted and adopted the position that the “War on Terror” violates international law. In other words, Venezuela upheld traditional international norms at a moment of Washington’s embrace of global military extremism. Washington perceived Chavez’s policy as setting an example or precedent for other “recalcitrant” states within Latin America and across the globe. As a result beginning with an overt State Department warning that “he (Chavez) would pay a price” for not submitting to the US global military offensive, Washington rapidly proceeded to put into operation plans to overthrow the ‘government via the coup of April 2002. If the trigger to US imperial intervention was Chavez lawful opposition to the global military strategy, the defeat of the coup and his restoration to power, led a redefinition of Venezuelan-US relations. Bilateral relations went from co-existence to confrontation. Venezuela began the search for regional allies, actively supporting left and nationalist movements and governments in Latin America. Simultaneously it pursued relations with imperial rivals and adversaries including Russia, China, Belarus and Iran.

Washington launched a second effort to unseat Chavez by backing the oil executives lockout – severely damaging the lifeblood of the economy. The defeat and purge of the US backed PDVS oil executives, led to the radicalization of social policy – vast reallocation of oil revenues to working class based social programs. Chavez appointed nationalists to key economic ministries selectively nationalized some enterprises and decreed a radical agrarian reform involving the expropriation of fallow landholdings. In part the radical policies were ‘pragmatic’, defensive measures in pursuit of national security. They also were a positive response (payback for support) to the newly mobilized urban and rural poor. Radicalization was also a response to pressure from the nationalist and socialist sectors of the newly formed Socialist Party and trade union confederations. US imperial efforts to isolate Venezuela in the Hemisphere, in the same fashion that it accomplished this policy with regard to Cuba in the 1960’s failed. The region was moving in line with Venezuela: nationalist populist and leftist movements and electoral alliances were replacing US client regimes. Washington’s policy backfired by regionalizing the conflict under unfavorable conditions, Venezuela gained popularity and support while Washington exposed its isolation and witnessed the demise of its effort to secure a regional free trade agreement.

The threat from the US pushed Chavez to redefine the nature of the political process from ‘reform’ to ‘revolution’; from moderate nationalism to 21st century socialism; from a bilateral conflict to a regional confrontation. Venezuela sponsored and promoted several key alliances including ALBA and PetroCaribe; Chavez later broadened Venezuela’s regional ties to include UNASUR and MERCOSUR.

Venezuela’s radical rejection of US hegemony was, however, tempered by structural limitations which provided US empire builders and internal clients with access points to power. The ‘socialization’ program did not affect 80% of the economy. Banking, foreign trade, manufacturing and agriculture remained under private ownership. Over 80% of the mass media remained in the hands of US backed private owners. Transport, food distributors and supermarkets remained privately owned. Electoral processes remained vulnerable to foreign funding by the National Endowment for Democracy and other US conduits. While the mixed economy and open electoral system, secured approval from Latin America’s center-left regimes and neutralized hostile US propaganda, they also allowed the empire through its clients to engage in sabotage and hoarding of vital consumer goods, violent electoral confrontations and permitted the mass media to issue open calls for insurrectionist activity.

The dialectic confrontation between US imperial aggression and Venezuelan nationalism deepened the revolution and spread its appeal overseas. Venezuela’s successful defiance of US imperialism became the defining reality in Latin America.

Imperialism based on militarism and regime destabilization led Venezuela to begin a process of transition to a post neo-liberal, post capitalist economy rooted in regional organizations. Yet this process continued to reflect economic realities from the capitalist past. The US remained Venezuela’s most important petroleum market. The US, caught up in Middle-East wars and sanctions against oil producers (Iraq, Iran, Libya and Syria) was not willing to jeopardize its Venezuelan petrol suppliers via a boycott. Necessity imposed constraints on imperial aggression and Venezuela’s anti-imperialism.

Conclusion

US-Venezuela relations is a casebook study of the complex, structural and contingent dimensions of imperialism and anti-imperialism. Contemporary US empire building, with its global engagement in prolonged serial wars and deteriorating domestic economy, has witnessed a sharp decline in its capacity to intervene and restore hegemonic influence in Latin America. Latin America, in particular Venezuela’s success in resisting imperial threats, demonstrates how much imperial power is contingent on local client regimes and collaborator military elites to sustain imperial hegemony. The entire process of imperial capital accumulation through direct exploitation and ‘dispossession’ is based on securing control over the state which in turn is contingent on defeating anti-imperialist and nationalist governments and movements. Imperialist hegemony can be based on either electoral processes (“democracy”) or result from coups, lockouts and other anti-democratic, authoritarian mechanisms. While historically, economic interests are an important consideration of imperial policymakers, contemporary US imperialism has confronted emerging nationalist governments because of their rejection of “global war” ideology. In other words Venezuela’s rejection of the ideology and practice of offensive wars and violations of international law is the trigger that set in motion imperial intervention. Subsequent conflicts between Washington and Caracas over petrol expropriations and compensation were derived from the larger conflict resulting from the practice of imperial militarism. US oil companies became economic pawns not the subjects of imperialist policymakers.

US imperialist relations to Latin America have changed dramatically in line with the internal changes in class relations. US financial and militarist elites, not industrial-manufacturers dictate policy. The relocation of US manufacturers to Asia and elsewhere is accompanied by the ascendancy of a power configuration whose political pivot is in the Middle East and in particular, in their own words, “securing Israeli superiority in the region”. This has had two opposing effects: on the one hand it has led imperial policymakers to pursue non-economic military agendas in Latin ‘America and on the other to “neglect” or allocate few resources, investments and attention to cultivating ties in Latin America. Inadvertently, the “mid-East pivot” and the militarist definition of reality has allowed Latin America to secure a far greater degree of independence and greater scope for cultivating diverse economic partners in the 21st century than was the case for the greater part of the 20th century.

Have US-Latin American relations permanently changed? Has Venezuela consolidated its independence and achieved the definitive defeat of imperial intervention? It would be premature to draw firm conclusions despite the substantial victories which have been achieved during the first decade and a half of the 21st century.

Pro-US regimes and elites still wield influence throughout Latin America. As was evident in the Presidential elections in Venezuela in April 2013, the US funded opposition candidate Henrique Capriles came within 2% of winning the election. And Washington, true to its destabilizing vocation, refused to recognize the legitimacy of the outcome. Since those elections, several members of the Embassy have been implicated in plots to overthrow the elected government. The ongoing intrusive imperial cyber spying system run by the US National Security Agency is a new element in colonial intervention reaching into the highest spheres of the political and economic systems of the entire region including Venezuela and Brazil the largest country in Latin America. On exposure, Washington affirmed its right to colonize and dominate Brazilian and Venezuelan cyber-space and control all communications between strategic elites.

Obama’s affirmation of the “right to spy” prompted new anti-imperialist measures, including proposals to end ties to US based and controlled information networks. In other words new imperial methods of colonization based on new technologies trigger new anti-imperial responses, at least for independent states.

The anti-neoliberal governments in Latin America heading up the struggle against US hegemony, face serious challenges resulting from the continuing presence of private banking and finance groups, US based multi-nationals and their local collaborators in electoral parties. Except for Venezuela and Bolivia, on-going US-Latin American joint military programs provide opportunities for imperial penetration and recruitment.

The high dependence of Venezuela and the other center-left countries (Ecuador, Argentina, Brazil, Bolivia, etc.) on commodity exports (agriculture, minerals and energy) subjects their finances, and development and social welfare programs to fluctuations and sharp downturns in revenues.

So far world demand for Latin commodities has fueled growth and independence and weakened domestic support for military coups. But can the mega-cycles continue for another decade? This is especially important for Venezuela which has not succeeded in diversifying its economy, oil accounting for over 80% of its export earnings. The China trade, which is growing geometrically, has been based on exports of raw materials and imports of finished goods. This reinforces neocolonial economic tendencies within Latin America.

Intra- Latin American trade (greater integration) is growing and internal markets are expanding. But without changes in class relations, domestic and regional consumer demand cannot become the motor force for a definitive break with imperialist dominated markets. In the face of a second world economic crisis, the US may be forced to lessen its global military incursions but will it return to hemispheric dominance? If commodity demand lessens and the Chinese economy slows, do the post-neoliberal regimes have alternative economic strategies to sustain their independence?

Imperial power in Latin America, and in Venezuela in particular, has suffered serious setbacks but the private property power structures are intact and imperial strategies remain. If the past half-century offers any lessons, it is that imperialism can adapt different political strategies but never surrenders its drive for political, military and economic domination.

Political Chronology of Venezuela

December 1998: Chavez elected

1999: Three referendums all successful: to establish constituent assembly to draft new constitution; to elect membership of constituent assembly; to approve new constitution.

July 2000: ‘Mega-election’: to elect President, national legislators and state and municipal officials. Chavez wins 6 year term with approx. 60% of the popular vote, his Patriotic Pole coalition wins 14 of 23 governorships and majority of seats in National Assembly

April 2002: Failed US backed military-civilian coup

December2, 2002 – Feb. 4, 2003: Failed oil executive and businessmen lockout to topple Chavez government.

August 2004: Recall referendum which Chavez wins by substantial margin

December 2005: Legislative elections: opposition boycotts, results in Chavez supporters dominating the National Assembly.

December 2006: Chavez re-elected with approx. 63% of the popular vote

December 2007: Chavez constitutional amendment package (‘socialism in the 21st century’) narrowly defeated in national referendum

2008: Chavez moves to unite supporters into a single party – the United Socialist Party of Venezuela (PSUV)

November 2008: State and municipal elections: pro-Chavez candidates won 17 of 22 governors’ races and 80% of more than 300 mayoral races

January 2009: National Assembly votes to hold referendum on constitutional amendment to abolish terms limits for all elected government officials.

February 2009: Referendum approved 55% to 45%.

September 2010: National Assembly elections, Chavez supporters won 98 seats (94 for PSUV candidates) versus 87 seats for opposition parties (65 won by 10 opposition parties known as Democratic United Platform/MUD). But the Government failed to win enough seats to enact various part of government agenda such as approving constitutional reforms.

October 2012 Presidential elections: Chavez wins with approx. 55% of popular vote.

December 2012: State and municipal elections, PSUV sweeps to victory.

April 2013: Chavez successor Nicholas Maduro wins election by 51% to 49%.

October 6, 2013 Posted by | Economics, Timeless or most popular | , , , , , , , | Leave a comment

Swiss to vote on sweet minimum monthly wage: $2,800

RT | October 6, 2013

Some 120,000 Swiss signatories have put their names to a petition demanding a monthly minimum wage of $2,800 (2,500 Swiss francs) for every single member of the working adult population. Enough names have been collected for a government vote.

Anything less than the proposed amount would be deemed illegal, even for people working in the lowest paid jobs. A typical fast-food worker in the US earns roughly $1,500 per month.

“It could be one of the landmark historical moments, like the abolition of slavery, or the civil rights movement – of course, those who don’t want it will find excuses, but those who do want it will find solutions,” Enno Schmidt, founder of the Basic Income Initiative, told RT.

A date for the vote itself is yet to be confirmed, however, it could take place before the end of this year, depending on the decision of the Swiss government. The “1:12 initiative” has gained support across the government’s social democrat bloc.

To mark the day, a truck full of 8 million five-cent coins was deposited on the square and spread out in front of the Swiss Parliament in Bern on Saturday.

The money to fund the measure, should it pass, would likely be supplied by the Swiss social insurance system.

“If there’s anywhere that can finance this, it’s Switzerland. Right now we have the ball rolling – it’s down to a ‘yes’ or ‘no’ question. It will then be up to lawmakers to determine exactly where the money will come from,” said Oswald Sigg, former Swiss Vice-Chancellor.

However, it has caused serious concerns about tax rises and pension loss.

“The older generation lived their whole lives in another system so it’s harder for them to actually realize what this means. They have fear, of course, for their pensions, and don’t instantly get that this is a replacement of an old system,” said Che Wagner one of the co-starters of the Basic Income Initiative.

As Switzerland has the 100,000 signature threshold, the country frequently votes on public measures. On November 24, the country will vote on another initiative to cap executive pay at the maximum of twelve times the lowest paid salary member.

One of Switzerland’s biggest CEOs has stated that if the measure passes, he would seriously contemplate moving his company out of the country. “I can’t believe that Switzerland would cause such great harm to its economy,” Glencore CEO Ivan Glasenberg told the Swiss Broadcasting Corporation.

October 6, 2013 Posted by | Economics, Solidarity and Activism, Timeless or most popular | , , , , , | Leave a comment

ObamaCare Clusterfuck: After 55, Medicaid is a loan you pay back from your estate

Corrente – 06/29/2013

Jeebus, it’s like they’re doing everything possible so that you don’t make it under the wire to 65, isn’t it? Here’s the text of a 2010 letter on NJ letterhead (“MEDICAID COMMUNICATION NO. 10-08”):

The Division of Medical Assistance and Health Services (DMAHS) is reinforcing and updating guidelines that were issued in Medicaid Communication No. 00-16, dated August 10, 2000, governing the recovery of correctly paid Medicaid benefits from the estates of deceased Medicaid clients or former Medicaid clients. The following is a list of important points to remember when determining eligibility and discussing this topic with applicants, clients, authorized representatives and families:

• Medicaid benefits received on or after age 55 are subject to estate recovery. This is specifically stated and acknowledged on the authorization page of the PA-1G Medicaid Application Form.
• DMAHS has an immediate right to recover from the estate unless there is a surviving spouse or child(ren) who is under age 21 or who is blind or permanently and totally disabled. Should any of these exceptions to DMAHS’ right to recover from an estate no longer apply (e.g., death of surviving spouse, attainment of age 21 by surviving child, or death or termination of disability of blind or permanently and totally disabled child), DMAHS has a right to recover from any remaining estate assets at that time.
• Estate recovery in New Jersey includes payments for ALL services, not merely services for institutionalized clients. There is no limitation on the type of service for which DMAHS can recover its payments from estates including managed care (HMO) capitation fees. However, effective January 1, 2010, Medicare cost-sharing benefits paid under the Medicare Savings Programs such as “Buy-in”, Specified Low-Income Medicare Beneficiaries (“SLMB”) or Qualified Individuals (“QI-1”) are not subject to estate recovery.
• The estates of deceased clients who were enrolled in various Title XIX Waiver Programs (such as ACCAP, GLOBAL Options, CCW, etc.) ARE subject to recovery. The only current exceptions are HCEP and JACC, which are State- funded programs through other State Departments.
• The client’s primary residence, while exempt for eligibility purposes, is considered part of the client’s estate, and therefore is subject to recovery. It is also important to reinforce with applicants, clients and families that any interest that the client had in any property at the time of death will be considered part of the decedent’s estate, and therefore subject to recovery.
• Annuities are required to be disclosed upon application and recertification for Medicaid. For those annuities which are determined not to be subject to asset liquidation, the State of New Jersey must be named as the remainder beneficiary in the first/primary position for the total amount of medical assistance paid on their behalf. In the case where there is a community spouse and/or a minor or disabled child, the State must be named in the second/secondary position as remainder beneficiary. The State or its eligibility agencies shall require verification of the State being irrevocably named as the remainder beneficiary in the correct position and the State needs to be notified of any contractual changes in the annuities’ income or principal. The remaining benefits of an annuity not subject to liquidation prior to eligibility determination are payable to the State (primary or secondary position) regardless of the age of provided services
• “Estate” for Medicaid recovery purposes is now defined by law to include any real or personal property and any assets in which the client had any legal title or interest at the time of death. Included for your reference is a copy of the pertinent regulation. Please note that the definition of “estate” appears at N.J.A.C. 10:49-14.1(e)2 and is quite comprehensive; also note that the term “other arrangements” used in that subsection includes testamentary trusts and annuities.
• Please remember that in the process of estate recovery, DMAHS will file a lien against the estate to recover all payments for services received on or after age 55 (except for annuities).
• No distribution can be made to heirs or creditors from the estate other than for reasonable funeral expenses, costs associated with the administration of the estate, debts owed to the Office of the Public Guardian for Elderly Adults, and claims with preference under federal or state law (e.g., IRS liens) that may be superior to Medicaid’s (e.g. filed prior in time) without first satisfying the Medicaid program’s lien.

And what’s so reprehensible about ObamaCare is that they force you into Medicaid. No options if that’s how the eligibility plays out; if you want to risk a piece-of-crap policy so you can pass on your house to your kids, you can’t do that. Yet another path to downward mobility! Of course, this only applies to the poorest, ObamaCare being ObamaCare.

NOTE Yet one more reason why single payer Medicare for All is the only fair solution.

Although this PDF is from NJ, it reads to me like they are passing along a Federal policy. Key words to research are “Medicaid estate recovery” +your favorite of the 50 states.

Aletho News recommends perusing the comment thread at the source for more information.

October 5, 2013 Posted by | Civil Liberties, Deception, Economics, Progressive Hypocrite, Timeless or most popular | , , , , | Leave a comment

Ecuador: National Assembly Approves Drilling in Yasuní National Park

By Brendan O’Boyle | The Argentina Independent | October 4, 2013

The Ecuadorian National Assembly voted Thursday to permit the drilling for petroleum in two sections of the Yasuní National Park in the country’s eastern Amazon basin. The decision comes just seven weeks after President Rafael Correa announced the failure of the Yasuní-ITT initiative, a project that sought to indefinitely prohibit oil exploration in the Yasuní in exchange for international donations equal to half of the reserve’s projected income.

The approved measure, which will allow oil exploration in the park’s 31 and 49 blocks, was passed with the votes of 108 of the assembly’s 133 members. The assembly cited “national interest” as justification for its decision. Ecuador’s constitution forbids “activities for the extraction of nonrenewable natural resources” except in the case of national interest as determined by the National Assembly.

President Correa says the exploration will only affect .01% of the park. Additionally, the legislation promises the protection of indigenous communities that live in the affected areas and excludes extractive activity from the Yasuní’s “untouchable zone”, the largest section of the park, which is to be preserved in its natural state as a wildlife sanctuary. The project will be run by state-run oil company Petroamazonas.

Fifty days ago, Correa requested authorisation to begin oil exploration within the park, declared a global biosphere reserve by UNESCO in 1989. The move has intensified national debate over drilling in the Yasuní and saw the president embark on a countrywide tour to convince oppositional groups of the economic and social need to drill in the wake of the Yasuní-ITT initiative’s failure.

In support of the president’s new initiative were 30 mayors from towns in Ecuador’s Amazon basin who travelled to Quito last month to express their support for the measure. Additionally, just last Friday 180 mayors signed a statement in support of the move to drill in the Yasuní.

However, opposition from ecological and indigenous rights groups remains high. On 28th August, police were accused of firing rubber bullets against protestors who had gathered in response to Correa’s initial remarks on opening the Yasuní up to exploration.

In the past month, the opposition has called for a national referendum, a request denied by the Constitutional Court.

Humberto Cholango, head of the Confederation of Indigenous Nationalities of Ecuador, told Ecuadorian newspaper El Universo that he was confused by the court’s decision. “There was a referendum over bullfighting in 2011, so why would you not consult the people on this issue of such importance, which threatens the lives of indigenous peoples as well as the reserve’s enormous biodiversity.”

Despite the rejection, the opposition pushed until the last moments before the vote.

Three community leaders from Ecuador’s Amazon region were invited to speak before the assembly on the final day of the debate. The first two spoke in favour of the government’s proposal, citing a need for economic development and a belief that the government would do its best to protect the local environment and communities.

The third speaker, a Guaraní woman named Alicia Cawiya, steered away from her prepared speech and delivered an emotional plea in an effort to change the minds of those about to vote.

“All we want is that you respect our territory, which we have preserved and cared for,” pleaded Alicia. “Leave us to live how we want. This is our only proposal.”

October 4, 2013 Posted by | Economics, Environmentalism | , , , , | Leave a comment

The Trans-Pacific Partnership: We Won’t Be Fooled by Rigged Corporate Trade Agreements

By Margaret Flowers and Kevin Zeese | Truthout | October 2, 2013

This week, President Obama will attend the Asia-Pacific Economic Coordination (APEC) meeting in Bali, Indonesia, where he is expected to announce his goal of having the Trans-Pacific Partnership (TPP) signed into law by the end of 2013. Obama will host a meeting of the leaders of the TPP nations during the APEC conference.

The Obama administration has been negotiating the TPP in secret for more than three years. Unlike past trade agreements, the text of the TPP is classified, and members of Congress have restricted access to it. If they do read the text, they are not allowed to copy it or discuss any specifics of it. However, more than 600 corporate advisers have direct access to the text on their computers.

The final formal round of negotiations was held in Brunei this August, and since then, there have been informal meetings to try and finalize sections of the agreement. As far as the president is concerned, the TPP is entering the home stretch. All he needs now is for Congress to vote to grant him fast track, also known as trade promotion authority, and it’s a done deal. The facts show that the president may be deluding himself or trying to fool everyone else.

This is because the TPP goes far beyond a trade deal. Only five of the 29 chapters contain provisions related to trade. The other chapters consist of provisions related to patent protections, investor state rights and finance deregulation, among others. The TPP is a backdoor corporate power grab to advance the stalled WTO agenda. Or as Sachie Mizohata writes in Asia Times, “The TPP is a Trojan horse, branded as a ‘free trade’ agreement, but having nothing to do with fair and equitable treatment. In reality, it is precisely ‘a wish list of the 1% – a worldwide corporate power’.”

We expect the president to return from Bali with increased enthusiasm to push for fast track. To accompany this push will be the usual misinformation campaign coming from supporters of the TPP. To prepare the public for the expected propaganda, we will look at what is being said and provide facts to counter their arguments.

As far as some members of Congress are concerned, as well as hundreds of civil society groups and a growing number of US residents, fast track and the TPP are not going to slide through Congress smoothly. Opposition to the TPP is growing as more people come to understand that the TPP is a rigged corporate trade deal and not fair trade that respects the needs of people and the planet.

What’s Wrong with Fast Track?

For most of the past 200 years, Congress negotiated trade policy and wrote the laws to oversee trade, as required in the Constitution’s Commerce Clause. This power was first transferred to the executive office when Nixon was granted fast track in 1974 as part of his consolidation of presidential power. Fast track expired in 2007. Only 16 trade agreements have been passed using fast track, and some of these were the most unpopular and controversial pacts such as the WTO and NAFTA, signed by President Clinton.

The previous fast track legislation required the president to submit both the trade agreement and implementing legislation to Congress for approval. According to a 2011 report by the Congressional Research Services, “The fast-track authority provides that Congress will consider trade agreement implementing bills within mandatory deadlines, with a limitation on debate and without amendment. . .” In other words, fast track permits the president to negotiate an entire trade agreement over many years and then present it to Congress for an up or down vote within a short time period (60 to 90 days), with debate limited to 20 hours and no amendments.

Fast  track severely undermines the transparent and democratic process required to ensure that the full implications of the agreement are understood and are acceptable. Trade agreements require that laws, even down to the local level, be changed to be in compliance with provisions in them. For example, when the WTO was passed, which was fast tracked despite having been negotiated for over 10 years and containing thousands of pages, most members of Congress did not read or understand it.

Great Recession Connection

One of the requirements of the WTO was that Glass-Steagall had to be repealed. This removed the wall that protected traditional banking from risky investments and is partially responsible for the current economic crisis, which started in 2008. Similarly, NAFTA was 1,700 pages, including annexes and footnotes. NAFTA involved only three countries, the TPP includes 12. Congress cannot digest all of this information and consider its implications in such a short time.

Passage of the Trans-Pacific Partnership and its sister, the Trans-Atlantic Trade and Investment Partnership (known as TAFTA), for which negotiations began in July, will require fast track to become law. Supporters of the TPP such as the US Chamber of Commerce and, of course, the office of the US Trade Representative (USTR) are promoting fast rack with flimsy and false arguments. Basically, they boil down to these points:

1.  The president should have fast track so he can negotiate job-creating agreements and boost trade and the economy.

2. It’s OK to give the president fast track because Congress is going to include negotiating objectives within the fast track law, and Congress must vote on the agreement.

3. The president should have fast track because other presidents have had it.

So, let’s examine the facts. First, despite promises of American jobs, past free trade agreements have actually been huge job losers. NAFTA is responsible for the loss of nearly 700,000 jobs. The recent Korea Free Trade Agreement was promised to bring 70,000 new jobs, but lost 40,000 jobs in the first year alone instead, and Public Citizen estimates that nearly 160,000 jobs will be lost over the first seven years. In total, US free trade agreements over the past two decades have netted a loss of nearly 5 million American jobs.

In addition to the loss of jobs, free trade agreements have contributed to the stagnation of wages in the United States. American workers cannot compete with extremely low wages in countries like China, Malaysia and Vietnam. A recent study predicts that the TPP will cause wages for 90 percent of American workers to decrease while wealth of the top 1% will soar. How can US workers compete with workers in Malaysia, where the minimum wage is $1.24; Peru, where it is $1.37; or Vietnam, where it is 30 cents? The TPP will increase the race to the bottom that will further impoverish US workers.

The same study predicts that the TPP will only boost US Gross Domestic Product (GDP) by 0.1 percent. In fact, free trade agreements do not seem to work at all when it comes to expanding US exports. According to the data, overall the US trade deficit has increased by 440 percent with countries with which we have free trade agreements and has declined by 7 percent with countries with which we do not have agreements. If we look at the outcome of a “21st century trade agreement,” which is how the office of the USTR describes the TPP, like the Korea Free Trade Agreement, we find that “average monthly exports to Korea since the FTA have sunk 11 percent below the average monthly level before the FTA.” TAFTA is expected to increase US GDP by a mere 0.2 to 0.4 percent, which Public Citizen reports, is “a smaller contribution to GDP than was delivered by the latest version of the iPhone.”

Second, let’s look at Congressional oversight under fast track. Carol Guthrie from the office of the US Trade Representative recently wrote an email response to the producer of a video interview of Margaret Flowers in which she said:

“Checking in on your story on TPP – afraid there seems to be some misunderstanding about trade promotion authority, sometimes known as ‘fast track.’ Under such a law, which lays out just how the administration should consult with Congress on trade agreements, and in which Congress sets out negotiating objectives for the United States, there are indeed hearings and an up or down vote in Congress before the agreement can be implemented in law and enter into force. There are rules in TPA about whether or not the implementing legislation for an agreement can be amended, but it does not allow an agreement to become law or enter into force without Congressional approval. Glad to share more information as it’s helpful to you.”

Flowers wrote back immediately and asked if there was fast track legislation available for review; whether there would be full hearings on the content of the TPP and its implications; and whether amendments would be allowed. That was on September 20 and no response has been received.

In the past, fast track has limited hearings and debate and has not allowed amendments. There have also been negotiating objectives in the past, and these have often been ignored. For example, labor rights were required under the WTO, but still were not included. Even when provisions such as worker protections are included in trade agreements, they are not enforced, as is recently demonstrated in Colombia, where deaths of worker advocates have increased and there are massive strikes and protests since passage of the Colombian FTA.

In the case of the TPP, negotiating objectives enacted now, when the negotiation of the entire agreement is concluding, will have absolutely no effect. The negotiating objectives are merely window dressing designed to confuse labor unions, environmental groups and others into supporting the TPP, when in reality, protections will not be enforced.

Members of Congress are overruled by the agreements when they do try to change the provisions. Ray Rogers writes that trade agreements “have nullified the efforts of political leaders like Senator Tom Harkin (D-Iowa), who introduced legislation in 1994 to ban the imports of products produced by brutal child labor. President Clinton’s US Trade Representative informed him that his bill would violate the General Agreement on Tariffs and Trade (GATT), which the United States is obliged to obey.” Thus, trade agreements tie the hands of Congress and undermine US sovereignty.

What is Oversight?

The definition of Congressional oversight by the office of the US Trade Representative falls far short of the degree of oversight necessary if Congress and the public are to have the ability to fully understand what is in the secret TPP and what the economic impact will be on the United States and nations around the world, as well as how it will impact protection of workers, consumers and the environment. What we expect to see under the fast track process are limited hearings in which supporters of the TPP praise it and Congress members are not able to fully question or amend it. How could it be anything else when members of Congress will not even have time to read the agreements?

Lastly, the idea that other presidents had fast track, so President Obama should too, is embarrassing in its lack of logic. Most presidents have not had fast track. And the agreements passed by fast track have caused the loss of US jobs, lowered wages and created higher trade deficits. Congress must serve its Constitutional function as a check and balance to the power of the President and the branch of government responsible for regulating trade and passing legislation. Fast track undermines the constitutional power of Congress and creates an imperial presidency.

Fortunately, the process to grant fast track trade authority this time around has slowed significantly. In February, 2012, then US Trade Representative Ron Kirk, in his testimony before the House Ways and Means Committee, included a request for fast track by the end of 2012 to complete TPP negotiations. Senators Max Baucus and Orrin Hatch urged the White House to request fast track trade authority last April. They expected to have a fast track bill passed in Congress by last June.

President Obama waited until August of this year to formally request fast track and, as of the writing of this article, no fast track bill has been introduced in Congress. A recent report in Politico stated, “Efforts by leaders of Senate Finance and House Ways and Means to craft a bipartisan TPA [Trade Promotion Authority] bill have taken longer than expected, prompting speculation the two panels may not be able to produce a package.”

Bipartisan opposition to fast track has already appeared in Congress. Alan Grayson (D-Florida) voiced opposition and Rosa DeLauro (D-Connecticut) is gathering signatures from other members on a letter to the president opposing fast track. Michelle Bachman (R-Minnesota) and Walter Jones (R-North Carolina) have a similar letter to the president. Many groups are lobbying against fast track, including Public Citizen, environmental groups and labor. We are organizing Fair Trade Brigades to track congressional support for fast track through our Flush the TPP campaign. Everyone is encouraged to participate in that effort.

Don’t Fast Track this Train Wreck

As Mizohata wrote in Asia Times, the TPP is Trojan horse that is not about trade. We know this because only five of its 29 chapters are about trade. Ben Beachy reports that “of the 11 countries negotiating the TPP with the United States, six already have FTAs with the US.”

So, if we already have trade agreements with these countries, and we know that trade deals don’t reduce our trade deficit, what is the reason for the TPP? It looks like a backdoor to the neoliberal economic agenda that has been stalled under the WTO since the Battle of Seattle in 1999. The tremendous secrecy surrounding the TPP is because the policies that are being pushed through are both harmful to – and unpopular with – the American public. Fast track is necessary to protect this secrecy because the TPP would not survive the light of day.

Senator Elizabeth Warren (D-Massachusetts) has been one of the most outspoken members of Congress on the need for transparency. She wrote a letter to the president requesting that the text be made available to the public. Even members of Congress have restricted access to the text. Zach Carter writes that “Some [members of Congress] have said they were insulted by the complex administrative procedures the office of the U. Trade Representative, or USTR, imposed to actually access the texts – barriers not imposed on unelected corporate advisers.”

And, it is not only texts, when Rep. Darrell Issa (R-California) sought to observe negotiations being held near his California Congressional District, the US Trade Representative would not allow it. While corporations have been allowed to participate throughout the process, a member of Congress who serves on committees dealing with energy, small businesses, foreign policy and government oversight – which would all be impacted by the TPP – was blocked from merely observing. As Rep. Issa wrote: “Congress has a constitutional duty to oversee trade negotiations and not simply act as a rubber stamp to deals about which they were kept in the dark. While I had hoped the TPP would permit me to observe this round of the negotiation process firsthand, our efforts to open TPP negotiations up to transparency will continue.”

Looking at the office of the USTR website, one would think that the process of negotiating the TPP has been open and broad, rather than closed and exclusive as it has been. Negotiators write that they are reaching out to a “broad cross-section of stakeholders” and they want to “set the stage for a deeper level of engagement with these and other stakeholders in the weeks and months ahead.” But these are empty promises and misleading statements as both members of Congress and stakeholders know.

The actions of the USTR are designed to give the illusion of engagement while the needs and interests of those affected by the TPP will be ignored. One of the authors of this piece, Kevin Zeese, participated in a stakeholder briefing last September. He found that questions from the stakeholders in attendance were not answered by the representatives and the entire event felt like a charade.

That is why last week, we decided to expose the secret TPP and make the public’s demands for democracy and transparency more visible through spectacle protests. On Monday, September 23, eight of us wore work coveralls and hard hats and climbed scaffolding next to the USTR building. We draped the outside of their building with four large banners calling for democracy and transparency and calling the TPP what it is in reality, a global corporate coup against people and the planet. Our effort to raise awareness was successful as the Washington Post reported on the protest, calling it “one of the best ever.” The next day we spread the news by conducting a march featuring a 32-foot fast track train, going back to the US Trade Rep. office, then to the World Bank, White House, Chamber of Commerce, business district, Pennsylvania Ave. and Congress.

It is up to the public and their representatives in Congress to demand that the full text of the TPP be released and that there be a democratic process of review. We must fully understand the effects of the TPP on employment, wages, the environment, Internet freedom, public health and safety, and more. Jim Hightower outlines some of the major concerns in his newsletter, The Lowdown.

We cannot blindly accept the information coming from the USTR, President Obama and Big Business supporters of the TPP. They have misled the public before, and they are doing it again to advance an agenda that puts profits before the needs of people and protection of the planet. The TPP will force smaller countries like Vietnam to change their entire economy by eliminating their publicly supported enterprises and services and opening them up to the private sector and foreign investors. This will increase poverty and suffering while lining the pockets of the wealthy.

Countries negotiating with the United States need to realize that if the TPP becomes law, they will be under the thumb of Monsanto, JPMorgan, Bank of America, Wal-Mart and other US-based transnational corporations. Rodrigo Contreras, Chile’s lead TPP negotiator recently quit to warn people of the dangers of the TPP – highlighting how big financial institutions will dominate their governments and how the TPP “will become a threat for our countries: It will restrict our development options in health and education, in biological and cultural diversity, and in the design of public policies and the transformation of our economies. It will also generate pressures from increasingly active social movements, who are not willing to grant a pass to governments that accept an outcome of the TPP negotiations that limits possibilities to increase the prosperity and well-being of our countries.” The TPP will destroy the sovereignty of the nations who agree to its terms.

The destruction of sovereignty includes the United States. One of the most egregious outcomes of the TPP, if it passes, is the way it will undermine our national sovereignty as well as the ability of state and local governments to pass laws. All laws will have to be brought into compliance with the TPP. This means that public institutions like schools and hospitals can no longer give preference to buying local products, and consumers may be barred from knowing whether foods contain GMOs. It means the “Buy America” laws will be illegal, so Americans will be forced to spend their money on foreign products that create a massive trade deficit.

And if we pass laws that interfere with expected corporate profits, those laws can be challenged in a special court, an international trade tribunal that operates outside of our legal system and that is staffed largely by corporate lawyers on leave from their corporate jobs. There will be no appeal to traditional courts from these rigged trade tribunals.

The TPP Unites Us and We can Stop It

The TPP will affect everything we care about. It is a cause that unites us, and if we work together to stop it, we will have won against the behemoth of transnational corporate power. A broad range of groups across the political spectrum are involved in stopping the TPP from becoming law. This includes Internet freedom, anti-GMO, health care, labor, faith, immigrant rights and environmental groups, among others.

We can stop the TPP. Indeed, 14 trade agreements have been prevented in the last dozen years. As more people know about it, the less popular it will become among politicians who will be held accountable for the TPP’s failures. It is up to the public to demand that our representatives put the interests of their constituents before the profits of their corporate campaign financiers. They must know that they will be held accountable for the detrimental consequences that are being predicted.

Public awareness and pressure are already having an effect. The media is starting to cover the TPP more, and the process of granting fast track has been slowed. We can expect more propaganda to appear as the TPP falters and so we must prepare ourselves to repel it with the truth. And we must remember that no matter what we are told about it, no matter what protections we are told are included in it, we must have access to the text before it is signed and we must review and fully understand what its impacts will be.

Other countries are taking steps to demand transparency and democracy. Recently, the Parliament of Peru passed a resolution “requesting that the government open a ‘public, political, and technical debate’ on the binding rules being negotiated in the TPP.” Protests in Japan have been widespread. The more we are visible in our concerns about the TPP, the more people in other nations will be emboldened to stand up to US imperialism and domination.

It is time to end the era of rigged corporate trade and begin fair trade that respects all people and the planet, and that is developed in an open and transparent manner. Join the Fair Trade Brigade either in Congress or where you live. Tell your member of Congress to vote “no” on fast track and pass a resolution locally that declares your community to be a TPP-free zone. Visit FlushtheTPP.org for more information on what you can do.

For more on the TPP visit here and here.

Other articles on the TPP by Margaret Flowers and Kevin Zeese:

TransPacific Partnership Will Undermine Democracy, Empower Transnational Corporations Protesters Take Over US Trade Rep Building, Expose Secret NegotiationsWhy It’s Time to Revolt Against the Worst “Trade Agreement” in History

October 3, 2013 Posted by | Deception, Economics, Progressive Hypocrite | , , , | Leave a comment

ObamaCare is Another Private Sector Rip-Off

By PAUL CRAIG ROBERTS | CounterPunch | October 3, 2013

The government of the “world’s only superpower,” the “exceptional,” the “indispensable” country, claims to know what is best for Syria, Iraq, Afghanistan, Libya, Yemen, Pakistan, Somalia, Mali, Russia, Venezuela, Bolivia, Ecuador, Brazil, China, indeed for the entire world. However, the “indispensable” country cannot even govern itself, much less the world over which the “superpower” desires hegemony. The government of the “world’s only superpower” has shut itself down.

The government has shut itself down, because it cannot deal with the budget deficit and mounting public debt caused by twelve years of wars, by financial deregulation that allows “banks too big to fail” to loot the taxpayers, and by the loss of jobs, GDP, and tax base that jobs offshoring forced by Wall Street caused.

The Republicans are using the fight over the limit on new public debt to block  Obamacare. The Republicans are right to oppose Obamacare, but they are opposing Obamacare largely for ideological reasons when there are very good sound reasons to oppose Obamacare.

Last February 3, I posted on this website a column, “Obamacare: A Deception,” written by an expert on the subject.

When Republicans for ideological reasons blocked a single-payer health system like the rest of the developed world has and, indeed, even some developing countries have, the Obama regime, needing a victory, went to the insurance companies and told them to come up with a health care plan that the insurance lobby could get passed by Congress. Obamacare was written by the private insurance industry with the goal of raising its profits with 50 million mandated new customers.

Obamacare works for the insurance companies, but not for the uninsured. The cost of using Obamacare is prohibitive for those who most need the health coverage.  The cost of the premiums net of the government subsidy is large. It amounts to a substantial pay cut for people struggling to pay their bills.  In addition to the premium cost, it is prohibitive for hard pressed Americans to use the policies because of the deductibles and co-pays. For the very poor, who are thrown into Medicaid systems, any assets they might have, such as a home, are subject to confiscation to cover their Medicaid bills.  The only people other than the insurance companies who benefit from Obamacare are the down and out who are devoid of all assets.

This might prove to be a growing percentage of Americans. On September 19 the New York Times on the front page of the business section reported what I have reported for years: that real median family incomes in the US are where they were a quarter of a century ago. In other words, in a quarter of a century there has been no income growth for the median American family.

In 2013 payroll employment is below where it was six years ago. During 2013 most of the new jobs, barely sufficient to stay even with population growth and insufficient to recover the job loss from the recession, have been part-time jobs that do not provide any discretionary income with which to drive a consumer economy.

Obamacare has resulted in the health insurance companies, who thought that they would be living in high profits from the mandated health coverage, being outsmarted by employers, who have reduced their full-time workers to part-time in order to avoid Omamacare’s requirement to provide health coverage to those employees who work 30 hours a week or more.

Employers can get away with this, because jobs are hard to find. The lack of employment opportunities results in Americans with engineering degrees working as retail sales clerks and as shelf stockers in Walmart and Home Depot. Despite the abundance of unemployed and under-employed American technical and engineering workers, the large corporations lobby Congress for more H-1B visas to bring in lowly paid foreigners with the argument that there is a shortage of qualified Americans for technical work.

As I have pointed out so many times, if there were a shortage of engineering and technical workers, salaries would be rising, not falling.

For millions of employees, Obamacare means cut hours and less take home pay plus out-of-pocket expenses to purchase an Obamacare health policy.  For most people covered by Obamacare, this is a lose-lose situation.

It is also a lose-loss situation for the vast majority of the young.  Most young people, unless they have jobs that provide health coverage, do without it, because the chances of the young having heart attacks, cancer, and other serious health problems is low.

Obamacare, however, requires the healthy young to pay premiums for coverage or to pay a penalty to the IRS.

In my day this might not have been a problem. However, today there are few jobs for the young that pay enough to have an independent existence. The monthly payroll jobs reports do not show well-paying jobs. The Labor Department’s projections of future jobs are not jobs that pay well. For the youth, it seems that the penalty is less than the premium, so youthful penalties paid out of waitress and bartender tips will subsidize the unusable Obamacare health policies for the poor adults who are not thrown into Medicaid, which confiscates their assets, if any.

Obamacare benefits only two classes of people. It benefits employers who drop their employees working hours below the hours specified for Obamacare coverage, and it benefits the insurance companies or the IRS who collect the premiums and penalties.

Many of the people who pay the premiums won’t be able to use the policies because of co-pays and deductions.

The very poor with no assets might receive health care if they reside in states that accept the Medicaid provisions of Obamacare.

In 21st century America, the few people who have experienced income gains are the executives and shareholders of firms who offshored their production for US markets, Wall Street which makes bets covered by the Federal Reserve, and the military-security complex which has been enriched by the neoconservatives’ wars.

Every other American has lost.

Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. His latest book The Failure of Laissez-Faire Capitalism. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format.

October 3, 2013 Posted by | Economics | , , , | Leave a comment

Death toll from Sudan fuel price demos nears 30

Press TV – September 26, 2013

The death toll from three days of protests over a cut in fuel subsidies in Sudan has reached to nearly 30.

Protests broke out in the country on September 23 following a government decision to lift fuel subsidies to raise revenue.

According to initial reports, seven people died during the protests, but a hospital source in Khartoum’s twin city Omdurman said the bodies of 21 people had been received since the protests began on September 23. That announcement put the death at nearly 30 people.

The source also stated that all the victims were civilians.

Activists are scheduled to hold fresh protests in the capital on Thursday.

On Wednesday, security forces fired tear gas and used force to disperse the demonstrators in Khartoum and Omdurman.

The demonstrators burned vehicles in a hotel car park near Khartoum International Airport, and a petrol station in the area was also set alight.

On September 24, protesters stormed and torched the offices of the ruling National Congress Party in Omdurman.

Sudan’s Education Ministry announced that schools in the capital would remain closed until the end of the month.

Sudan has been plagued by running inflation and a weakening currency since it lost billions of dollars in oil revenues after South Sudan gained independence two years ago, taking with it some 75 percent of crude production of the formerly united country.


Sudan Tribune | September 25, 2013

… The Sudanese embassy in Washington said in a press release that the lifting of fuel subsidies was due to the US economic sanctions.

“Due to continuing economic sanctions against the peoples of Sudan, the Government of Sudan lifted subsidies for gasoline. Some citizens violently protested this necessary economic measure by burning government buildings, gasoline stations, shopping malls and private property. Some also attacked the police, who defended themselves while protecting public and private property,” the embassy said.

It also denied imposing an internet blackout.

“The Government of Sudan did not block internet access. Among other targets, violent protesters burned facilities of Canar Telecommunications Company, which hosts the core base of internet services for Sudan. These fires resulted in continuing internet black outs across Sudan,” it added.

“The Government of Sudan and Canar Telecom have now partially restored internet service and will work until internet access is fully restored”.

Renesys Corp., a company that maps the pathways of the Internet, said according to Associated Press that it could not confirm whether the blackout was government-orchestrated. But the outage recalls a similarly dramatic outage in Egypt, Sudan’s neighbour, when authorities shut off Internet access during that country’s 2011 uprising.

“It’s either a government-directed thing or some very catastrophic technological failure that just happens to coincide with violent riots happening in the city,” said senior analyst Doug Madory. He said it was almost a “total blackout.”

On Monday, the Sudanese cabinet formally endorsed a decision that has been circulated the night before by which prices of gasoline and diesel were increased by almost 100%.

A gallon of gasoline now costs 21 Sudanese pounds ($4.77 based on official exchange rate) compared to 12.5 pounds ($2.84).

Diesel also went from 8 pounds ($1.81) a gallon to 14 pounds ($3.18).

Cooking gas cylinders are now are priced at 25 pounds ($5.68) from 15 pounds ($3.40).

The cabinet also raised the US dollar exchange rate for importing purposes to 5.7 pounds compared to 4.4. The black market rate now stands at 8.2.

Senior Sudanese officials including president Omer Hassan Al-Bashir have defended the measure saying the only alternative would be an economic collapse as the state budget can no longer continue offering the generous subsidies on petroleum products to its people.

Sudan’s oil boom that fuelled an unprecedented economic growth and a relative prosperity over the last decade came to an end with the independence of South Sudan which housed around three quarters of the crude reserves prior to the country’s partition. … Full article

September 26, 2013 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , , , | Leave a comment

Anti-piracy curriculum for elementary schools decried as ‘propaganda’

RT | September 24, 2013

Content-industry giants and internet service providers are teaming up to produce multi-grade elementary school curriculum which will denounce copyright infringement.

The likes of the Motion Picture Association of America (MPAA), the Recording Industry Association of America (RIAA), AT&T, Verizon, Google, Microsoft, Facebook, and Comcast are behind the pilot project which will be tested in California elementary schools later this year.

The curriculum, called “Be a Creator,” is not quite complete, producers say, though Wired was able to obtain the various levels of content – from kindergarten to sixth grade – which aim to communicate that copying is theft.

“This thinly disguised corporate propaganda is inaccurate and inappropriate,” said Mitch Stoltz, an intellectual property attorney with the Electronic Frontier Foundation who reviewed the material.

“It suggests, falsely, that ideas are property and that building on others’ ideas always requires permission,” Stoltz says. “The overriding message of this curriculum is that students’ time should be consumed not in creating but in worrying about their impact on corporate profits.”

The content was made by the California School Library Association and the Internet Keep Safe Coalition. The Center for Copyright Infringement commissioned the material. The center’s board is made up of executives from MPAA, RIAA, Verizon, Comcast, and AT&T.

Each grade’s package includes a short video and a teacher worksheet of talking points.

For example, the sixth grade version urges children to realize that copyright infringement can have worse consequences than cheating on a test, which usually results in a bad grade or suspension from school.

“In the digital world, it’s harder to see the effects of copying, even though the effects can be more serious,” the teacher worksheet says.

The material does not comment on fair use, which allows for the reuse of copyrighted works without permission. Rather, students are told that using without permission is “stealing.”

The Internet Keep Safe Coalition, a non-profit organization partnering with governments and major corporations like Facebook and Google, said that fair use is beyond the comprehension of sixth graders.

The curriculum “is developmentally consistent with what children can learn at specific ages,” the group’s president, Marsali Hancock, told Wired, adding that materials for older children will include the concept.

A video for second graders shows a child taking photos and debating whether to sell, keep, or share them.

“You’re not old enough yet to be selling your pictures online, but pretty soon you will be,” reads the teacher lesson plan. “And you’ll appreciate if the rest of us respect your work by not copying it and doing whatever we want with it.”

The groups involved in the curation of the material stressed that it was in draft form at this point, and that some wording will be changed before the pilot project begins in schools.

“We’ve got some editing to do,” said Glen Warren, vice president of the non-profit California School Library Association.

Warren alluded that the Center for Copyright Information (CCI), a content-industry group, has already had influence on the project.

Hancock said the material has not yet been approved by CCI. The group is best known for working with the government and rights holders to begin an internet monitoring program with large ISPs that punish violators with extrajudicial measures like temporary internet termination and weak connection speeds.

CCI’s executive director, Jill Lesser, has alluded to youth education programs in the past.

“Based on our research, we believe one of the most important audiences for our educational efforts is young people. As a result, we have developed a new copyright curriculum that is being piloted during this academic year in California,” she said last week in a testimony on Capitol Hill.

“The curriculum introduces concepts about creative content in innovative and age-appropriate ways. The curriculum is designed to help children understand that they can be both creators and consumers of artistic content, and that concepts of copyright protection are important in both cases,” Lesser testified.

She said that CCI’s board will likely sign off on the curriculum soon.

“We are just about to post those materials in the next week or two on our web site,” Lesser told Wired.

The first grade lesson plan puts content sharing on par with theft.

“We all love to create new things – art, music, movies, paper creations, structures, even buildings! It’s great to create – as long as we aren’t stealing other people’s work. We show respect for other artists and their work when we get permission before we use their work,” the material says. “This is an important part of copyright. Sharing can be exciting and helpful and nice. But taking something without asking is mean.”

The fifth grade lesson introduces the Creative Commons license, though it distorts the legality of copying copyrighted works.

“If a song or movie is copyrighted, you can’t copy it, download it, or use it in your own work without permission,” the fifth grade worksheet reads. “However, Creative Commons allows artists to tell users how and if their work can be used by others. For example, if a musician is okay with their music being downloaded for free – they will offer it on their website as a ‘Free download.’ An artist can also let you know how you can use their work by using a Creative Commons license.”

September 25, 2013 Posted by | Civil Liberties, Deception, Economics, Full Spectrum Dominance | , , , , , , , , , , | Leave a comment

Do Doctors Really Lose Money on Medicare Patients or Do They Lie to New York Times Reporters?

CEPR | September 24, 2013

That is undoubtedly the question that many NYT readers were asking when they read an article warning that insurance companies in the exchanges were not paying enough money to attract many doctors. At one point the piece told readers;

“Dr. Barbara L. McAneny, a cancer specialist in Albuquerque, said that insurers in the New Mexico exchange were generally paying doctors at Medicare levels, which she said were ‘often below our cost of doing business, and definitely below commercial rates.'”

The claim that Medicare payments are “below our cost of doing business” might seem rather dubious to readers since most doctors accept Medicare patients. The median earnings of physicians are well over $200,000 a year (net of malpractice insurance), which means they are heavily represented in the one percent. Given their extraordinary incomes, which they vigorously protect by excluding foreign and domestic competition, it seems implausible that many doctors are willing to lose money by treating Medicare patients.

It is more likely that doctors are getting less than their desired pay when they treat Medicare patients, but still pocketing far more money than the overwhelming majority workers for their time. It would have been useful to clarify this point for readers rather than letting Doctor McAneny’s assertion pass unchallenged.

September 25, 2013 Posted by | Deception, Economics, Mainstream Media, Warmongering | , , , | Leave a comment

Brazil’s Rousseff to UN: US surveillance an ‘affront’

RT | September 24, 2013

Brazilian President Dilma Rousseff lambasted US spying on her country at Tuesday’s UN summit, 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.

“Without the right to privacy, there is no real freedom of speech or freedom of opinion,” Rousseff told the gathering of world leaders. “And therefore, there is no actual democracy,” she added, criticizing the fact that Brazil had been targeted by the US.

“A country’s sovereignty can never affirm itself to the detriment of another country’s sovereignty,” she added.

Rousseff went on to propose a multilateral, international governance framework to monitor US surveillance activity. “We must establish multilateral mechanisms for the world wide web,” she said.

Rousseff said that the US’s arguments for spying on Brazil and other UN member states were “untenable”, adding that “Brazil knows how to protect itself” and that the country has been “living in peace with our neighbors for more than 140 years.”

Brazil’s specific targeting in US surveillance practices prompted Rousseff’s government to announce that it intends to adopt both legislation and technology aimed at protecting itself and its businesses from the illegal interception of communications.

A week ago, Rousseff canceled an impending state visit to Washington, scheduled to take place in October, because of indignation over spying revelations. Rousseff has stated she wants an apology from Obama and the United States.

The revelations that the US National Security Agency has been intercepting Rouseff’s own phone calls and e-mails, in addition to those of her aides and officials at state-controlled oil and gas firm Petrobras, have prompted an outcry in Brazil.

Rousseff’s predecessor as Brazilian President, Lula da Silva, said earlier this month that Obama should “personally apologize to the world.” Lula accused the US of “thinking that it can control global communications and ignore the sovereignty of other countries” in an interview with India’s English-language daily The Hindu, published Sept. 10.

Latin America voices widespread indignation at US activities

US relations with all of Latin America have recently soured. In addition to Brazil, Mexico, Bolivia and Venezuela have all voiced anger with the US over the NSA’s surveillance of their countries this year. Bolivia has been especially bitter.

“I would like to announce that we are preparing a lawsuit against Barack Obama to condemn him for crimes against humanity,” President Morales told reporters Friday in the Bolivian city of Santa Cruz. He branded the US president as a “criminal” who had violated international law.

In early July, a plane carrying Morales from Moscow to the Bolivian capital, La Paz, was grounded for 13 hours in Austria after it was banned from European airspace because of US suspicions it was carrying fugitive Edward Snowden, the former NSA contractor who has been responsible for the majority of leaks regarding NSA spying practices since June.

Venezuela wrote to UN Secretary-General Ban Ki-moon at the end of last week, requesting that he take action in response to the apparent denial of US visas to some members of the Venezuelan delegation who were scheduled to attend the UN General Assembly in New York.

President Nicolas Maduro said that the denial seemed intended to “create logistical obstacles to impede” the visit, and further requested that the UN “demand that the government of the US abide by its international obligations” as host of the 68th UN General Assembly.

Tension between Venezuela and the US rose Thursday when Venezuela’s foreign minister, Elias Jaua, told media outlets that the US had denied a plane carrying Maduro entrance into its airspace. The aircraft was en route to China. Washington later granted the approval, stating that Venezuela’s request had not been properly submitted. Jaua denounced the move as “an act of aggression.”

September 24, 2013 Posted by | Civil Liberties, Corruption, Deception, Economics, Full Spectrum Dominance, Progressive Hypocrite | , , , , , , , , | Leave a comment