Report: Greek aid likely conditioned on arms deals
Press TV – April 20, 2012
Financial aid to cash-strapped Greece is suspected to have been conditioned on the country’s managing to clinch arms deals with Germany and France, a report reveals.
“Speculation is rife that international aid for the country was contingent on Greece following through on agreements to purchase military hardware from Germany and France,” The Guardian said on Thursday.
Germany’s biggest arms market in Europe is Greece with around 15 percent of its total arms sales heading there.
Earlier in January, German Chancellor Angela Merkel told a joint news conference with French President Nicolas Sarkozy in Berlin, “We must see progress on the voluntary restructuring of Greek debt.”
Merkel and Sarkozy both insisted to press ahead with a greater “fiscal compact” in Europe, and tougher penalties for the countries that violated the eurozone’s budget rules.
Greece’s Deputy Prime Minister Theodore Pangalos regretted during a May 2010 visit by Turkish Prime Minister Recep Tayyip Erdogan that Athens was spending so much money on arms.
He said the country was being “forced to buy weapons” and that the deals made him feel “national shame.”
Thanos Dokos, a leading Greek defense expert, said the country had 1,300 tanks, more than twice the number in the UK and far beyond its needs.
Greece has the highest debt burden in proportion to the size of its economy in the 17-nation eurozone. Despite austerity cuts and bailout funds, the country has been in recession since 2009.
In order to secure an EUR-130-billion bailout package funded mostly by the eurozone member states and the International Monetary Fund, the country had to adopt harsh austerity measures, including massive cuts to its private and public sector wages, pensions, as well as health and defense spending, which have worsened the economic recession, leading to thousands of job losses.
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- The Untold Story – Arms imports and the Greek debt crisis (antiworldnews.wordpress.com)
‘West waging economic war against Sudan’
Sudan Tribune | April 17, 2012
KHARTOUM – A senior Sudanese official has accused Western countries of waging an economic war against his country and aiding neighbouring South Sudan in its alleged support of Sudanese rebels.
Nafie Ali Nafie, a Sudanese presidential assistant, said while addressing a rally in the capital Khartoum on Tuesday that the West is aware that “the rebels and mercenaries” had destroyed oil facilities in the Heglig area which was captured by South Sudan’s army last week.
“They [Western countries] believe this could weaken the Sudanese economy” he said before adding that the government knows how to run the battle and organise its priorities.
Heglig, which produces half of Sudan’s daily oil production of 115,000 barrels a day, was occupied by South Sudan’s army last week in the most dangerous escalation of military confrontations between the two neighbours since the south gained independence last year.
In his speech, Nafie said that Sudan must talk to its friends in the international arena in order to prevent Western countries from supporting Sudanese rebels of the Sudan People’s Liberation Movement North (SPLM-N) via the UN.
His statement appears to be related to international efforts spearheaded by the US to allow aid groups to the country’s border states of South Kordofan and Blue Nile, where Sudan’s army has been fighting SPLM-N rebels since last year.
Nafie went on to dismiss concerns that his government would use the war over Heglig as a pretext to increase repression of dissent but he put a caveat saying that Khartoum will not tolerate “traitors”
“There will be no curtailment of public liberties but traitors are entitled to no freedom” he declared.
Nafie further accused the Sudanese Revolutionary Forces (SRF), a rebel coalition including the SPLM-N, of occupying Heglig and then handing it over to the “enemy”, meaning South Sudan.
He described SRF’s supporters as “agents and traitors” and reiterated Khartoum’s commitment not to negotiate with South Sudan’s government.
He further sought to allay concerns that the government would terminate fuel subsidies against the background of losing Heglig’s oil, saying that such actions would only occur within calculated measures.
Sudan admitted this week that the loss of Heglig’s oil will affect government income but government officials said that plans have already been initiated to assimilate the deficit.
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Sudan’s projected economic contraction in 2012 worse than expected
Sudan Tribune | April 17, 2012
WASHINGTON – The International Monetary Fund (IMF) on Tuesday revised down its forecast to Sudan’s economy to show a significant shrinkage in 2012.
According to the latest release of the World Economic Outlook (WEO), the East African nation achieved a -3.9% growth in 2011. The figure includes South Sudan only up until July 2011 when the country officially broke into two.
In 2012, Sudan’s economy will contract by -7.3% before improving in 2013 to -1.5% and to 1.7% in 2017.
The loss of oil-rich South Sudan last year meant that Sudan no longer has access to billions of dollars worth of crude reserves. Oil was the main source of foreign currency and revenues for Sudan prior to the country’s partition.
To make matters worse, South Sudan managed last week to take over one of Sudan’s major oilfields of Heglig in South Kordofan through a military occupation that took everyone by surprise. Analysts say that damages to the facilities in the area, which produces half Sudan’s oil, as a result of military operations means that production will not resume anytime soon.
Furthermore, landlocked South Sudan shut down its own roughly 350,000 barrels per day in January in a row over how much it should pay to export crude via Sudan. The latter has built in oil transit fees as part of its budget at the rate of $36 per barrel.
Khartoum has undertaken measures since last year in anticipation of the sharp curtailment in revenues. This includes cutting government spending, partially lifting subsidies and banning a wide range of imports to stop depletion of foreign currency reserves.
But nonetheless, food prices soared to unbearable levels for many citizens prompting limited demonstrations in the Sudanese capital last year. The exchange rate of the Sudanese pound also deteriorated to unprecedented levels amid sharp shortage in hard currency which further fueled price hikes.
The IMF projected consumer prices in Sudan to increase by 23.2% in 2012 and 26.0% in 2013, which is the highest in the Middle East region.
Sudan has turned to a number of friendly nations seeking help to shore up its budget deficits and boost its foreign currency reserves directly or through investments. So far only the Arab Gulf state of Qatar made a $2 billion pledge to assist in the form of buying Sudan government bonds and investments in several economic sectors.
Sudanese officials assert that their country will overcome the loss of oil revenue by exporting more gold and revamping the agricultural sector.
However, this week the Sudanese finance and national economy minister Ali Mahmood Abdel-Rasool said that the 2012 budget as it stands is unsustainable and needs to be amended.
The pro-government al-Rayaam newspaper reported that the Sudanese parliament is poised to approve a second round of lifting subsidies on fuel amid strong objections from the labour union.
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- World demands South Sudan pullout of Heglig, end to Khartoum’s air raids (alethonews.wordpress.com)
- South Sudan playing into the hands of foreign states: Bashir (alethonews.wordpress.com)
The Left Radicalism of Jean-Luc Mélenchon
By PHILIPPE MARLIERE | CounterPunch | April 17, 2012
Superbly ignored by the media until recently, Jean-Luc Mélenchon is the new flavour of the day in the French presidential campaign. In truth, while trying to account for his dramatic rise in the polls – latest reports put him at 17% of the vote – most commentators could not help pour scorn on the Left Front candidate.
A survey of the main articles recently published in the British media provides a compelling case study of political prejudice and misunderstanding. Mélenchon is described as an “Anglo-Saxon basher with a whiny voice” (the Independent), a “populist” who’s “on the hard-left” (all newspapers) and a “bully and a narcissist, out to provoke” (BBC). More sympathetic commentaries compare him to George Galloway or depict him as a “far-left firebrand”, a “maverick” and the “pitbull of anti-capitalism”.
It is striking that the more favourable assessment of Mélenchon’s politics remains off the mark. Mélenchon is seen as a “lovable but old-fashioned leftwinger”. This fails to capture the essence of his political ambitions. Mélenchon’s rise has nothing to do with “1970s-style politics and nostalgia”, but is linked instead to his resolute take on the current capitalist crisis. He tells audiences that the austerity policies implemented across Europe are not only unfair but also counterproductive (even the Financial Times agrees). Mélenchon’s debating skills serve his cause, but he is also a lettered pedagogue: a dignified politician who has never participated in vulgar reality shows. What is more, Mélenchon is a French republican and a socialist, not a “far-left” or a fringe politician. He spent 30 years in the Socialist party unsuccessfully arguing that it should be a force at the service of ordinary workers, and he was a cabinet minister in Lionel Jospin’s government.
Oratory is politically useless if one does not have an important message to deliver. Mélenchon has one: neoliberalism has failed, so it would be suicidal to persist with its inadequate policies. The French MEP also had a credible programme. In didactically crafted speeches or in media interviews, he radically departs from mainstream politicians by explaining that the economic crisis is systemic, that is to say that it is due to our flawed political choices and priorities. Our societies have never been as productive and wealthy as today, but the majority of the population are getting poorer despite working harder and harder. The problem is not a question of wealth production (as neoliberals and Blairite social democrats would have us believe), but of redistribution of wealth.
In France raging pundits and opponents call the Left Front programme an “economic nightmare” or a “delirious fantasy”. Shouldn’t they instead use this terminology to describe the banking debacle or austerity policies across Europe? Mélenchon’s growing number of supporters view it as common sense and salutary: a 100% tax on earnings over £300,000; full pensions for all from the age of 60; reduction of work hours; a 20% increase in the minimum wage; and the European Central Bank should lend to European governments at 1%, as it does for the banks. Here are a few realistic measures to support impoverished populations. Is this a revolution? No, it is radical reformism; an attempt to stop the most unbearable forms of economic domination and deprivation in our societies. Fat cat bosses may leave France; they will be replaced by younger and more competent ones who will work for a fraction of their wages.
“Humans First!” is more than a manifesto title, it is a democratic imperative: a sixth republic in place of the current republican monarchy; the nationalisation of energy companies (as energy sources are public goods) and, less often noticed, the ecological planning of the economy, the core of Mélenchon’s political project.
Mélenchon has done French democracy a further favour. In a memorable TV debate, he emphatically defeated the extreme right for the first time in 30 years. Concentrating on policy details, Mélenchon demonstrated that Marine Le Pen’s programme was regressive for women. Furthermore, he smashed to pieces the myth of the Front National as a party that has the working class’s best interests at heart. Le Pen appeared lost for words and ill at ease.
Mélenchon’s campaign politicises the young. He appeals to the working class, which, contrary to some claims, has largely shunned Le Pen and which has been abstaining from the vote. For the first time in decades, Mélenchon is helping the left to reconnect with the popular classes. For Mélenchon, free market politics does not work and inflicts unnecessary suffering on the people. No other European politician is better placed than he is to convincingly argue that point.
Philippe Marlière is a Professor of French and European politics at University College London (UK). He can be reached at: p.marliere@ucl.ac.uk
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Argentina to nationalize Spanish owned oil firm
Press TV – April 16, 2012
The Argentine government says it will present a bill to the country’s senate for the nationalization of the YPF oil company which is owned by Spanish firm Repsol.
Argentine President Cristina Fernandez said on Monday that the bill would allow the government to expropriate 51 percent of YPF shares, while the country’s oil producing provinces would get 49 percent.
“This president is not going to answer any threat, is not going to respond to any sharp remark, is not going to echo the disrespectful or insolent things said,” Fernandez said.
YPF has been under heavy pressure from the Argentine government over the past two months for not investing enough in the country’s oil fields.
The move has already been criticized by the Spanish government. Spanish officials say Argentina risks becoming “an international pariah” if it takes control of the YPF, in which Repsol has a 57.4 percent stake.
Spain is Argentina’s largest foreign investor and YPF is Argentina’s biggest oil company.
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Sovereignty For Sale: Corporate Land Grab in Colombia
By Nazih Richani | Cuadernos Colombianos | April 10, 2012
“Buy land, they’re not making it anymore.” – Mark Twain
There are three main trends in the international political economy that are currently shaping land use and value. The first is the increasing demand for land from the emerging economies of China and India alongside Korea, Japan, and the petro-dollar states of Saudi Arabia, United Arab Emirates, and Qatar. These countries are buying and renting lands in Africa, Asia, and Latin America, particularly Brazil and Argentina, for bio-fuels and other cash-crops. The second and third trends are the increased use of land for mining and speculation. Land has become the hottest commodity on the global market. It is as if the world capitalist class has only just heard Mark Twain’s advice: “Buy land, they’re not making it anymore.”
Consequently more land is being put to the service of biofuel crops and mining. Over the last decade alone, over 560 million acres in Africa, Latin America, and Southeast Asia, that were previously dedicated to food production, are now catering to biofuels and mineral extraction. Mostly multinational corporations and sovereign funds now own this land, which is equivalent to the size of the combined territories of Britain, France, Germany, Italy, Ireland, Portugal, Spain, and Switzerland. The entire forested area of the United States, including Alaska, is almost 490 million acres. Perhaps with these figures we can appreciate the magnitude of these trends.
U.S.-based Drummond Co. coal mine in Colombia (Al.com)In February, the Colombian Geological Service issued a report in which it revealed that in Colombia, a mining rich country, 18 multinational mining companies own the rights to mine on over 12 million acres of land. This figure is a partial assessment and does not include the subsidiaries of these corporations. The gold mining companies Anglo Gold Ashanti and Mineros SA have the rights to the largest amount of land, according to the report. Combined they control about 59% of these areas. Other multinationals such Eco Oro (formerly known as Greystar) and Leyhat, both Canadian companies, are not far behind. The latter owns the rights to mine on nearly 100,000 acres in the Colombian departments of Santander and North Santander. Oil multinational corporations, which were not included in the report, were granted over 90 million acres for oil exploration and production across Colombia.
Meanwhile, Cargill, the world’s largest agribusiness, recently bought over 220,000 acres in the Colombian department of Meta where it is already producing grains. The Israeli company Merhav has invested $300 million in buying and preparing nearly 25,000 acres in Magdalena Medio for the production of sugar cane to produce ethanol.
In Colombia over 280,000 acres have been sold to foreign companies for biofuel crop production, as well as nearly 250,000 acres of forest land that is now owned by Timberland Holdings (Swiss-Ecuadorian company), Smurfit-Kappa (Irish), the Chilean-based companies Agrícola de La Sierra and Reforestadora del Sinú, and the Colombian companies Inverbosques and Forest First. According to the November 2011 Peace Brigades International Colombia Newsletter, today, 40% of Colombia’s 280 million acres of land “has been licensed to, or is being solicited by, multinational corporations.”
The far reaching implications of such a profound shift in land use puts the future of Colombia’s food security in jeopardy, as well as the livelihood of millions of people across the globe. If these trends are not reversed they are a major threat to global peace and security.
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What is ObamaCare?
High-Cost Privatized Medicine that Guarantees Billions of Dollars in Profits to Private Insurance Companies
By PAUL CRAIG ROBERTS | CounterPunch | April 11, 2012
Growing up in the post-war era (after the Second World War), I never expected to live in the strange Kafkaesque world that exists today. The US government can assassinate any US citizen that the executive branch thinks could possibly be a “threat” to the US government, or throw the hapless citizen into a dungeon for the rest of his or her life without presenting any evidence to a court or obtaining a conviction of any crime, or send the “threat” to a puppet foreign state to be tortured until the “threat” confesses to a crime that never occurred or dies at the hands of “freedom and democracy” while professing innocence.
It has never been revealed how a single citizen, or any number thereof, could possibly comprise a threat to a government that has a trillion plus dollars to spend each year on security and weapons, the world’s largest navy and air force, 700 plus military bases across the world, large numbers of nuclear weapons, 16 intelligence agencies plus the intelligence agencies of its NATO puppet states and the intelligence service of Israel.
Nevertheless, air travelers are subjected to porno-scanning and sexual groping. Cars traveling on Interstate highways can expect to be stopped, with traffic backed up for miles, while Homeland Security and the federalized state or local police conduct searches.
I witnessed one such warrantless search on Easter Sunday. The south bound lanes of I-185 heading into Columbus, Georgia, were at a standstill while black SUV and police car lights flashed. US citizens were treated by “security” forces that they finance as if they were “terrorists” or “domestic extremists,” another undefined class of Americans devoid of constitutional protections.
These events are Kafkaesque in themselves, but they are ever more so when one considers that these extraordinary violations of the US Constitution fail to be overturned in the Supreme Court. Apparently, American citizens lack standing to defend their civil liberties.
Yet, ObamaCare is before the US Supreme Court. The conservative majority might now utilize the “judicial activism” for which conservatives have criticized liberals. Hypocrisy should no longer surprise us. However, the fight over ObamaCare is not worth five cents.
It is extraordinary that “liberals,” “progressives,” “Democrats,” whatever they are, are defending a “health program” that uses public monies to pay private insurance companies and that raises the cost of health care.
Americans have been brainwashed that “a single-payer system is unaffordable” because it is “socialized medicine.” Despite this propaganda, accepted by many Americans, European countries manage to afford single-payer systems. Health care is not a stress, a trauma, an unaffordable expense for European populations. Among the Western Civilized Nations, only the richest, the US, has no universal health care.
The American health care system is the most expensive of all on earth. The reason for the extraordinary expense is the multiple of entities that must make profits. The private doctors must make profits. The private testing centers must make profits.The private specialists who receive the referrals from general practitioners must make profits. The private hospitals must make profits. The private insurance companies must make profits. The profits are a huge cost of health care.
On top of these profits come the costs of preventing and combatting fraud. Because private insurance companies resist paying and Medicare pays a small fraction of the medical charges, private health care providers charge as much as they possibly can, knowing that the payments will be cut to the bone. But a billing mistake of even $300 can bankrupt a health care provider from legal expenses defending him/her self from fraud accusations.
The beauty of a single-payer system is that it takes the profits out of the system. No one has to make profits. Wall Street cannot threaten insurance companies and private health care companies with being taken over because their profits are too low. No health-provider in a single-payer system has to worry about being displaced in a takeover organized by Wall Street because the profits are too low.
Because a single-payer system eliminates the profits that drive up the costs, Wall Street, Insurance companies, and “free market economists” hate a “socialized” medical care system. They prefer a socialized “private” health care system in which public monies flow into private insurance companies.
To make the costs as high as possible, conservatives and the private insurance companies devised ObamaCare. The bill was written by conservative think tanks and the private insurance companies. What the “socialistic” ObamaCare bill does is to take income taxes paid by citizens and use the taxes to subsidize the private medical premiums charges by private health care providers in order to provide “private” health care to US citizens who cannot afford it.
The extremely high costs of ObamaCare is not “socialistic medicine.” ObamaCare is high-cost privatized medicine that guarantees billions of dollars in profits to private insurance companies.
It remains to be seen whether such a ridiculous health care scheme, nowhere extant on earth except in Romney’s Massachusetts, will provide health care or just private profits.
PAUL CRAIG ROBERTS was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury. His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Press.
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- Real Health Care Advocates Should Support Repeal of the Insurance Mandate (alethonews.wordpress.com)
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