Aletho News

ΑΛΗΘΩΣ

Oil Abstinance for Israel

Is an oil shock looming? – A Simple Question

Twice in the last 4 years, oil prices have surged causing major disruption in the global economy. In 2008 oil prices went up to $147 per barrel, and last year, disruptions in the supply of oil from Libya sent the price of oil rocketing up to $127. The sharp increase in the price of oil has had a worrying impact on the global economy, and the US as well as Europe has felt the effect. Oil prices are up around 15% since the beginning of the year and rich-country oil stocks are at a 5-year low. Oil prices rose by 80% at the start of the first Gulf War. Now that global oil prices are on the rise again, at a time when the financial crisis is only starting to recover, there is more pressure on western governments to act. Economic sanctions on Iran have the potential to make the situation much worse for the west – but by their own doing. Iran – a major contributor to the world’s oil economy – exports 20% of the world’s oil needs. With oil embargoes already on Syria disruption to this supply of oil from Iran could be disastrous for the West.

April 19, 2012 Posted by | Deception, Economics, Timeless or most popular, Video, Wars for Israel | , , , , | Leave a comment

‘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.

~

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.

April 18, 2012 Posted by | Economics, Illegal Occupation | , , , , , | Leave a comment

They Are Still Killing Trade Union Leaders

Global Capital’s Death Squads and Night-Riders

By DAVID MACARAY | CounterPunch | April 18, 2012

Make no mistake.  We had some ugly anti-labor mischief of our own during the late 19th and early 20th centuries, where union organizers, political radicals, suspected anarchists and Bolsheviks were blackballed, beaten, imprisoned, deported, murdered, and state-executed—all in the name of “law and order.”  But while many of these men (and women, too….they deported Emma Goldman to Russia) were clearly railroaded, at least the high-profile figures were given the semblance of a jury trial.

Question:  So what happens these days in developing countries when a prominent, charismatic union activist—with the courage to stand up to sinister, government-supported business groups who have, on more than one occasion, already threatened his life—attempts to get the country’s underpaid, under-benefited workers to join a labor union?  Answer:  They kill him.

It was reported Monday, April 9, that the body of Aminul Islam, the charismatic and widely respected union leader of Bangladesh’s garment industry, had been found (on Friday, April 6) dumped along side a road in Ghatail, a town approximately 60 miles northwest of Dhaka, Bangladesh’s capital.  Not only had Islam been murdered, local police reported that the corpse bore evidence of “severe” torture.

Since 2006, Aminul Islam had been a major thorn in the side of the garment bosses, as he fought for higher wages, safer working conditions, and increased employee dignity.  Many Bangladeshis work 12-14 hour days, make as little as 21-cents per hour, and don’t even get regular breaks.  With a reported $19 billion in overseas sales in 2011, Bangladesh is the world’s second-largest apparel exporter.  The stakes are enormously high.  With an estimated 5,000 factories cranking out fabric night and day, the textile industry is single-handedly keeping Bangladesh’s economy afloat. Which is why they were so frightened of Aminul Islam.

Most recently, Islam had been trying to organize workers at factories owned by a company called the Shanta Group.  According to shipping records, Shanta produces garments for many well-known American companies, including Tommy Hilfiger, Nike, and Ralph Lauren.  Because Islam’s activism was acknowledged to have been largely responsible for worker uprisings and demonstrations in 2010—demonstrations that nearly crippled the industry—business groups weren’t going to stand idly by and watch him convince Shanta’s 8,000 workers to join the union.  They weren’t going to allow it.  So they killed him.

Mind you, these atrocities aren’t happening only in faraway Bangladesh; they are happening in our own hemisphere as well—in Central and South America.  In fact, the place where they have occurred the most—and continue to occur with chilling regularity—is Colombia.  According to the Solidarity Center (the labor federation’s international arm, headquarted in Washington D.C.), nearly 4,000 Colombian trade unionists have been murdered over the last 20 years.  Indeed, more trade unionists are killed in Colombia each year than in the rest of the world combined.

The United States supports the government of Colombia.  We support this anti-labor government that gives lip service to initiating programs designed to stop the violence, but who, in truth, has done little to prevent death squads and night-riders from tooling around the country murdering trade unionists.

And that’s where the arrangement now stands.  Our clothing is made by workers whose factory conditions are deplorable; our produce is harvested by pickers whose field conditions are deplorable; and our government supports regimes whose human rights records are a joke.  The U.S. has more than 800 military bases strewn around the word, we spend more money on defense than the rest of the world combined, and Barack Obama is awarded the Nobel Peace Prize.  That’s a very weird trifecta.

DAVID MACARAY, an LA playwright and author (“It’s Never Been Easy:  Essays on Modern Labor”), was a former union rep.   He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, forthcoming from AK Press.  He can be reached at dmacaray@earthlink.net

April 18, 2012 Posted by | Economics, Solidarity and Activism, Subjugation - Torture, Timeless or most popular | , , , , | Leave a comment

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

April 17, 2012 Posted by | Economics | , , , , , | Leave a comment

Iran FM urges West to lift sanctions before next round of talks

Press TV – April 16, 2012

The Iranian Foreign Minister has called on Western governments to lift their sanctions against Iran before the next round of talks between Tehran and the six world powers in Baghdad in late May.

“The Istanbul meeting was a turning point in the talks [between Iran and the world powers],” Ali Akbar Salehi said on the sidelines of a Monday visit to the Iranian Students’ News Agency (ISNA).

Previously, the other side did not step into the negotiations with the intent to resolve the issues, “but presently things have changed,” he added.

Referring to the country’s successful indigenous production of nuclear fuel, Salehi said, “The other side has realized Iran’s progress despite all the restrictions and pressures.”

Salehi added that the other side hoped Iran would surrender its nuclear energy rights under pressure, but when faced with the resolve and resistance of Iranians, the West decided to come to the negotiation table.

“Today, they returned to the talks; it was not us who returned to the talks as we were committed to negotiations from the start.”

Salehi added that another reason why the West decided to resume negotiations was the adverse impact that tensions against Iran was having on the US economy.

Iran’s policy is one of “transparency, dialogue and win-win solutions,” Salehi said, adding, “We are ready to create the conditions that can help alleviate the fabricated concerns that they [Western powers] have made up in their minds because we are sure of ourselves.”

Elsewhere, Salehi underlined the peaceful nature of Iran’s nuclear energy program and referred to a fatwa, religious decree, issued by the Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei which declares atomic weapons as haram, or forbidden according to Islam.

Iran and the P5+1 group – the five permanent members of the UN Security Council plus Germany – wrapped up two rounds of negotiations in Istanbul, Turkey on Saturday and agreed to hold the next round of talks in Baghdad on May 23, 2012. Both sides hailed the talks as “constructive” and “positive.”

The EU Foreign Policy Chief Catherine Ashton described the talks as useful and constructive, saying that Iran has the right to have a civilian nuclear program.

Tehran and the P5+1 previously held two rounds of talks, one in Geneva, Switzerland in December 2010 and another in Istanbul in January 2011.

April 16, 2012 Posted by | Economics, Militarism | , | Leave a comment

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.

April 16, 2012 Posted by | Economics | , , , , , | Leave a comment

World’s Apex Bully Leads World Into Lawlessness

By PAUL CRAIG ROBERTS | April 13, 2012

The US government pretends to live under the rule of law, to respect human rights, and to provide freedom and democracy to citizens. Washington’s pretense and the stark reality are diametrically opposed.

US government officials routinely criticize other governments for being undemocratic and for violating human rights. Yet, no other country except Israel sends bombs, missiles, and drones into sovereign countries to murder civilian populations. The torture prisons of Abu Gahraib, Guantanamo, and CIA secret rendition sites are the contributions of the Bush/Obama regimes to human rights.

Washington violates the human rights of its own citizens. Washington has suspended the civil liberties guaranteed in the US Constitution and declared its intention to detain US citizens indefinitely without due process of law.  President Obama has announced that he, at his discretion, can murder US citizens whom he regards as a threat to the US.

Congress did not respond to these extraordinary announcements with impeachment proceedings. There was no uproar from the federal courts, law schools, or bar associations. Glenn Greenwald reports that the Department of Homeland Security harasses journalists who refuse to be presstitutes,  and we have seen videos of the brutal police oppression of peaceful OWS protestors.  Chris Floyd has described on CounterPunch the torture-perverts who rule the US.

Now Washington is forcing as much of the world as it can to overthrow international treaties and international law.  Washington has issued a ukase that its word alone is international law. Any country, except those who receive Washington’s dispensation, that engages in trade with Iran or purchases Iran’s oil will be sanctioned by the US. These countries will be cut off from US markets, and their banking systems will not be able to use banks that process international payments.  In other words, Washington’s “sanctions against Iran” apply not to Iran but to countries that defy Washington and meet their energy needs with Iranian oil.

According to the Christian Science Monitor, so far Washington has granted special privileges to Japan and 10 European Union countries to continue purchasing Iranian oil. Requiring countries to shut down their economies in order to comply with Washington’s vendetta against Iran, a vendetta that has been ongoing ever since the Iranians overthrew the Washington-installed puppet, the Shah of Iran, more than three decades ago, was more than Washington could get away with. Washington has permitted Japan to keep importing between 78-85 per cent of its normal oil imports from Iran.

Washington’s dispensations, however, are arbitrary. Dispensations have not been granted to China, India, Turkey, and South Korea.  India and China are the largest importers of Iranian oil, and Turkey and South Korea are among the top ten importers. Before looking at possible unintended consequences of Washington’s vendetta against Iran, what is Washington’s case against Iran?

Frankly, Washington has no case.  It is the hoax of “weapons of mass destruction” all over again. Iran, unlike Israel, signed the non-proliferation treaty. All countries that sign the treaty have the right to nuclear energy. Washington claims that Iran is violating the treaty by developing a nuclear weapon.  There is no evidence whatsoever for Washington’s assertion.  Washington’s own 16 intelligence agencies are unanimous that Iran has had no nuclear weapons program since 2003.  Moreover, the International Atomic Energy Agency’s weapons inspectors are in Iran and have reported consistently that there is no diversion of nuclear material from the energy program to a weapons program.

On the rare occasion when Washington is reminded of the facts, Washington makes a different case. Washington asserts that Iran’s rights under the non-proliferation treaty notwithstanding, Iran cannot have a nuclear energy program, because Iran would then have learned enough to be able at some future time to make a bomb.  The world’s apex bully has unilaterally decided that the possibility that Iran might one day decide to make a nuke is too great a risk to take. It is better, Washington says, to drive up the oil price, disrupt the world economy, violate international law, and risk a major war than to have to worry that a future Iranian government will make a nuclear weapon. This is the Jeremy Bentham tyrannical approach to law that was repudiated by the Anglo-American legal system.

It is difficult to characterize Washington’s position as one of good judgment.  Moreover, Washington has never explained the huge risk Washington sees in the possibility of an Iranian nuke.  Why is this risk so much greater than the risk associated with Soviet nukes or with the nukes of the US, Russia, China, Israel, Pakistan, India, and North Korea today?  Iran is a relatively small country.  It does not have Washington’s world ambitions. Unlike Washington, Iran is not at war with a half dozen countries. Why is Washington destroying America’s reputation as a country that respects law and risking a major war and economic dislocation over some possible future development, the probability of which is unknown?

There is no good answer to this question. Lacking evidence for a case against Iran, Washington and Israel have substituted demonization. The lie has been established as truth that the current president of Iran intends to wipe Israel off the face of the earth.

This lie has succeeded as propaganda even though numerous language experts have proven that the intention attributed to the Iranian president by American-Israeli propaganda is a gross mistranslation of what the president of Iran said. Once again, for Washington and its presstitutes, facts do not count. The agenda is all that counts, and any lie will be used to advance the agenda.

Washington’s sanctions could end up biting Washington harder than they bite Iran. What will Washington do if India, China, Turkey and South Korea do not succumb to Washington’s threats?

According to recent news reports, India and China are not inclined to inconvenience themselves and to harm their economic development in order to support Washington’s vendetta against Iran. Having watched China’s rapid rise and having observed North Korea’s immunity to American attack, South Korea might be wondering how much longer it intends to remain Washington’s puppet state.  Turkey, where the civilian and somewhat Islamist government has managed to become independent of the US- controlled Turkish military, appears to be slowly coming to the realization that Washington and NATO have Turkey in a “service role” in which Turkey is Washington’s agent against its own kind.

The Turkish government appears to be reassessing the benefits of being Washington’s pawn.

What Turkey and South Korea face is basically a decision whether they  will be independent countries or be subsumed within Washington’s empire.  The success of the American-Israeli assault on Iran’s independence depends on India and China.

If India and China give the bird to Washington, what can Washington do?  Absolutely nothing.  What if Washington, drowning in its gigantic hubris, announced sanctions against India and China?

Wal-Mart’s shelves would be empty, and America’s largest retailer would be hammering on the White House door.

Apple Computer and innumerable powerful US corporations, which have offshored their production for the American market to China, would see their profits evaporate. Together with their Wall Street allies, these powerful corporations would assault America with more force than the Red Army.  The Chinese trade surplus would cease to flow into US Treasury debt. The offshored-to-India back office operations of banks, credit card companies, and customer service departments of utilities throughout the US would cease to function.

In America, chaos would reign. Such are the rewards to the Empire of globalism.

Obama and the neoconservative and Israeli warmongers who urge him on to more wars do not understand that the US is no longer an independent country. America is owned by offshoring corporations and the foreign countries in which the corporations have located their production for US markets. Sanctions on China and India (and South Korea) mean sanctions on US corporations. Sanctions on Turkey mean sanctions on a NATO ally.

Do China, India, South Korea and Turkey realize that they hold the winning cards? Do they understand that they can give the bird to the American Empire and bring it down in collapse, or are they brainwashed like Europe and the rest of the world that the powerful Americans cannot be resisted?

Will China and India exercise their power over the US, or will the two countries fudge the issue and adopt a pose that saves face for Washington while they continue to purchase Iranian oil?

The answer to this question is:  how much will Washington pay China and India in secret concessions, such as eviction of the US from the South China Sea, for their pretense that China and India acknowledge Washington’s dictatorial powers over the rest of the world?

Without concession to China and India, Washington is likely to be ignored while it watches its power evaporate. A country that cannot produce industrial and manufactured goods, but can only print debt instruments and money is not a powerful country. It is a washed-up two-bit punk that can continue to strut around until the proverbial boy says:  “the Emperor has no clothes”.

Source

April 15, 2012 Posted by | Economics, Timeless or most popular, Wars for Israel | , , , , | Leave a comment

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.

April 12, 2012 Posted by | Economics, Environmentalism | , | Leave a comment

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.

April 11, 2012 Posted by | Deception, Economics, Progressive Hypocrite | , , , , , | Leave a comment

Small-Scale Miners Face Crackdown as Foreign Companies Set Sights on Colombia

By Leah Gardner | Upside Down World | April 11, 2012

Police arrived at the Santa Isabel mine in Colón-Génova on February 21, 2012. The officers asked these local miners to attend a meeting to see if they could sort out their licensing request; However, when the roughly twenty-five miners arrived, they were read their rights and arrested.

About a week later, a report ran on television stating that police had arrested a group of illegal miners in Colón-Génova who were making over 150 million pesos ($CAD 84,500) per month and using their earnings to fund the FARC and Los Rastrojos, a paramilitary group.

The miners say they were shocked. “It’s ridiculous,” says Ferney Gamboa, one of those arrested. “A person here makes between 320,000 and 480,000 pesos ($CAD 180 -270) per month.” Miners then invest earnings into their farms and families, he adds. “We have no contact with armed groups.”

This assertion has been backed by local officials. Pedro Vincente Obando, the Secretary of the Governor of Nariño, said at a conference on March 27, 2012 that the charges were “false and dangerous.”

A Mining Country

Miners and the Comité de Integración del Macizo Colombiano, (Committee for the Integration of the Colombian Massif – CIMA), a rural social movement allied with the miners, believe that this is part of a federal government strategy to phase out informal mining and pave the way for foreign multinationals.

“We are seeing the criminalization of artisanal mining in this country,” says Luz Mila Ruana, an organizer for CIMA in Nariño. She adds that a subsidiary of the South Africa-based mining company AngloGold Ashanti has begun preliminary exploration activities around the Santa Isabel mine.

Miners say that while being accused of funding illegal armed groups was a shock, the arrival of police wasn’t much of a surprise. They have been waiting for nearly a year to submit their license application, but have been held up by administrative delays.

The Instituto Colombiano de Geología y Minería (Colombian Geology and Mining Institute – Ingeominas), the government body responsible for processing applications, stopped accepting requests for the legalization of traditional mines in 2011 after it reportedly received an overwhelming number of applicants. “Now they are saying we can submit in April,” says Gamboa. He doesn’t seem convinced.

Meanwhile, news of ‘illegal’ miner arrests is common in the Colombian media. Since the adoption of a new mining code in 2001 and new policies meant to crackdown on informal mining, the Colombian government has given unlicensed operations until 2012 to obtain the proper paper work or face arrest.

The national government has made illegal mining a political and military priority, arguing that unlicensed operations cause environmental damage and contribute to the ongoing internal conflict by financing armed groups. In November 2011, officials said they had closed 329 unlicensed gold mines, arresting 1,228 people.

Miners and CIMA organizers are convinced that these policies have little to do with the environment or national security, and much to do with the federal government’s plan to turn the country into a large-scale mining giant by 2019.

The CIMA and Canadian non-governmental organizations focusing on mining are quick to point out that the 2001 mining code was written in consultation with Canadian and Colombian mining companies — a process that was funded in part by a grant from the Canadian International Development Agency (CIDA).

Since its adoption, foreign mining company royalty rates have dropped from 10% to .4%. Simultaneously, the number of mining permit requests and concessions have increased dramatically, with Canadian companies making up a large portion of mining exploration investment.

The vision of Colombia as an untapped haven for large-scale mining stands in stark contrast to the reality, in which millions of small and artisanal miners are already working throughout the country.

The nearly one-hundred men and women working at the Santa Isabel mine have been doing so with the permission of the local land owner for nearly forty years. Miners here work in small teams to extract tiny particles of gold from rocks dug out of shallow holes in the mountainside. To do this, they use water and large wooden sluices which hark back to the days of the California gold rush.

They do not use toxic chemicals, but many small-scale operations — and all large-scale ones — in the country do use toxins.  It is no wonder then that Colombia has some of the highest levels of mercury contamination in the world.

Ferney Gamboa argues that compared to his operation, a massive gold mine in the area would be far more detrimental to the environment. “A large-scale mine will have a much larger impact. These companies use cyanide and huge amounts of water.”

A Country in Conflict

As for the funding of armed groups, CIMA organizers believe that large-scale development projects pose the highest risk to empowering illegal actors. In 2007, Chiquita Brands pled guilty to violating US anti-terrorism laws after admittedly making payments to the United Self-Defense Forces of Colombia (AUC), a right-wing paramilitary group. A civil suit brought by families of the victims of paramilitaries is still ongoing. Drummond Ltd., an American coal mining company is currently facing a trial in the US for the same issue, while British Petroleum (BP) settled out of court with victims of paramilitaries that it allegedly funded in 2009.

Paramilitaries are notorious in Colombia for murdering community leaders and appropriating land through terror tactics. After a deeply flawed demobilization process between 2003 and 2006, these groups are still active today, although under different names. Colombia still contains the second largest internally-displaced population in the world, behind Afghanistan, with 87% of displaced people originating from mining and energy-producing regions.

The Colombian military is also present in extractive zones, with 30%, or 80,000 members, of the country’s public forces dedicated to protecting oil and mining industry infrastructure. This has also created problems for small scale miners and farmers. In 2006, military troops killed Alejandro Uribe and Carlos Mario García, miners who were outspoken critics of foreign extractive companies active in the Bolivar Department, including AngloGold Ashanti. The army claimed that the two men were guerrilla fighters killed in combat, an argument rejected by local communities and dismantled by investigative journalists and rights groups like Amnesty International.

This confusion between civilians and guerrilla fighters is not out of the ordinary in Colombia. The Coordinación Colombia Europa Estados Unidos (Colombia Europe United States Coordination – CCEEU) reports that 535 civilians were victims of unlawful killings by Colombian public forces between January 2007 and July 2008. In 2008, the false positive scandal revealed that military troops had murdered scores of poor urban youth and farmers, and then dressed the bodies up to look like guerrilla fighters in order to inflate the military’s combat success rate.

‘False positives’ pervade the Colombian prison system as well. The Comité de Solidaridad con los Presos Politicos (Political Prisoners Solidarity Committee – CSPP), a national advocacy group for political prisoners, estimates that 60% of the 7,500 prisoners in the country detained for political crimes associated with the armed conflict are actually social movement and union leaders who have been falsely accused.

Foreign multinationals deny contributing to or benefiting from the conflict in Colombia.  In response to small-scale miners fears of displacement in Colón-Génova, a spokesperson for AngloGold Ashanti Colombia states: “In the Department of Nariño, AngloGold Ashanti Colombia has built a good relationship based on support and collaboration with legal mining cooperatives, such as those established in Cumbitara and Los Andes Sotomayor, for example.”
The Colombian government maintains that it promotes partnerships between small-scale miners and multinationals, and that along with passing new regulations it is providing support to small mining operations to improve their standards.

Although some mining cooperatives have taken advantage of these arrangements, there are still many small-scale miners in Nariño who fail to see how new government policies can benefit them. “It’s hard to tell which is better, having the license or not,” says one owner of a licensed mine in the municipality of Sotomayor. “Once you have the license, the next step is keeping it.”

He argues that even with help from the Colombian government to improve their lighting system, new regulations like requiring owners to pay into workers compensation will be close to impossible to meet.

In Colón-Génova, miners are resolved to peacefully defending their livelihoods despite the challenges ahead.  They are currently working together with movements like the CIMA to fight what they believe was an illegal arrest and to legalize their mine once and for all.

Leah Gardner is an independent journalist focusing on human rights and corporate accountability. She currently lives in Colombia.

April 11, 2012 Posted by | Economics | , , , , | Leave a comment

Colombia: Obama’s Bloodiest Betrayal?

Obama Poised to Give Presidential Seal of Approval to Gross Labor Rights Violations in Colombia

By DANIEL KOVALIK, GIMENA SANCHEZ-GARZOLI & ANTHONY DEST | CounterPunch | April 11, 2012

On November 9, 2011, the family of Juan Carlos Galvis – a prominent union leader with Sinaltrainal and personal friend of ours – was subjected to a violent home invasion by two presumed paramilitaries.  The intruders entered the Galvis home while Juan Carlos and his son were away and assaulted his wife, Mary, and his two daughters, Jackeline and Mayra.  They grabbed Mayra, a child with Downs Syndrome, and put a gun to her head, threatening to kill her if Mary did not tell them the whereabouts of Juan Carlos and his son.  They then bound and gagged Mary and Jackeline, again asking them to say where Juan Carlos and his son were. The assailants then proceeded to spray paint Mary and Juan’s faces on a wedding photo the family had posted on the wall. Before leaving the home, they stole two laptops, some USB memory drives, documents, and trashed the house. The traumatic attack left Mayra in shock for days and unable to speak.

The family was forced to flee to another town where they are now hiding. Their fears are well founded. Two of Juan Carlos’ Sinaltrainal colleagues, John Fredy Carmona Bermudez and Luis Medardo Prens Vallejo, were killed in recent months.

All in all, 30 unionists were killed in Colombia last year. The National Labor School (ENS) reports that 4 have already been killed this year, and other trade union movements have reported additional murders (e.g., Justice for Colombia has reported 6). Such killings have made Colombia, where around 3,000 unionists have been killed since 1986, the most dangerous country in the world to be a trade unionist, and if the assassination rate this year continues as it has thus far, Colombia will most certainly retain this notorious distinction.

Meanwhile, the Colombian government has done nothing effective to prosecute those responsible for such anti-union violence, with the UN recently reporting that Colombia’s rate of impunity for such crimes remains at 95% – meaning that only 5% of the union killings have ever been successfully prosecuted.

It was these two factors – the unprecedented rate of union killings and the high rate of impunity for these killings – that led Barack Obama in 2008 to declare in his third debate with John McCain that he opposed the Colombia Free Trade Agreement (FTA).

While being a trade unionist in Colombia is dangerous, those that are unionists are the few that can more freely organize. Under the Alvaro Uribe Velez Administration the “associative labor cooperatives” (CTAs) model proliferated throughout Colombia. This union-busting model that precludes direct contracts between workers and companies gravely debilitates working conditions, salaries, and occupational safety protections. Workers have risked losing their meager livelihoods by holding stoppages to obtain direct contracts that are more likely to guarantee their basic labor rights.

In April 2011, Presidents Obama and Santos presented a Labor Action Plan designed to address anti-union violence, prosecute anti-union crimes, do away with labor inter-mediation, and improve conditions for workers in the port, sugar, oil palm, and other sectors. Since the LAP was signed, Colombia has played the game of appearing to comply with the LAP while at the same time undermining its purpose. It has met surface requirements like setting up the Labor Ministry, passing legislation, and fining abusive companies.

While the number of trade unionists killed has gone down (and of course, as Father Javier Giraldo opined some time ago, there are indeed many less unionists to kill), the security climate and death threats against them have not changed. This leaves the possibility that the number of murders and attacks could flare up once the FTA moves forward. The murder of trade unionists and labor activists is often spun to be unrelated to their labor rights activities—robbery, jealous lovers or links to narcotrafficking are the reasons used to whitewash the murders. For example, Hernan Dario, a lawyer who represented the largest public sector union in Valle del Cauca (Sintraemcali) and several labor activists in the sugarcane sector, was murdered. His name was subsequently dragged through the mud based on unsubstantiated allegations linking him to drug dealers. This tactic was utilized in order to create an environment of confusion and impede actions for justice in this case.

Last year, Colombia passed a law that supposedly banned CTAs, yet the reality is that this only restricts them by name since other forms of labor inter-mediation, including the Simplified Stock Companies, shell companies, and supposed “union contracts,” have replaced them. In the sugar and port sectors, leaders of work stoppages and those affiliated to trade unions are rarely rehired through these new contracts. The Ministry of Labor and the labor inspectors designated by the LAP are not effectively intervening to remedy these situations. Over 70 Afro-Colombian port workers in Turbo who attempted to form a union in October 2011 have been fired. Those workers were given an ultimatum—sign a letter stating they will not affiliate with a trade union or enjoy unemployment.

The Ministry is not even intervening to implement the International Labor Organization’s (ILO) recommendations as mandated by the Labor Action Plan. The case of 51 fired public sector workers of EMCALI is just one of many examples. Rather than implement the ILO’s March 2012 recommendations to rehire the workers, authorities proceeded to evict the workers who held a hunger strike in Cali last week. These victims of Colombia’s unjust labor practices, all of whom have been unemployed since 2004 since they were blacklisted for standing up for labor rights, are not even permitted to protest.

Some of the workers who would most benefit from effective implementation of the Labor Action Plan are Afro-Colombians. Most Afro-Colombian workers, who make up an estimated 25% of Colombia’s population and a disproportionate number of the country’s over 5.2 million internally displaced, work in sectors where labor rights standards are weakest. As such, many are not able to freely exercise their right to unionize, and if they try to do so face death threats or impoverishment. Many Afro-Colombian workers describe their situation as “modern day slavery.”

Afro-Colombian dockworkers in Buenaventura, a key port for the FTA, work in one of Colombia’s most abusive environments. In this port, Afro-Colombians come to work in hazardous conditions for 24 to 48 hours straight, often sleeping on the containers. The demanding environment obligates them to stay inside the port complex for an entire week without the possibility to return home. Healthcare is often reserved for the more privileged individuals working in offices, and workers who are hurt or disabled are often fired. Those attempting to organize are threatened or denied employment. It took a work stoppage in January 2012 for some of these workers to receive direct contracts. The majority of port workers continue to be employed through intermediaries, and those with the direct contracts have low salaries and are prohibited from unionizing. Only today, after months of pressure, has the Ministry of Labor opened up an investigation into some of these abuses.

Still, despite continued anti-union violence, the high rate of impunity, serious impediments to union organizing, and the dire conditions faced by workers, President Obama is now poised to announce at the Summit of the Americas that Colombia has complied with the Labor Action Plan. Working conditions and protection for trade unionists in Colombia do not reflect the U.S. government’s evaluation of the Labor Action Plan. If Obama goes ahead with his plans in Cartagena to green light the FTA, Colombian and U.S. workers will lose their last bit of leverage to stem the tide of anti-union violence and defend the rights of Colombia’s most vulnerable populations.

Daniel Kovalik is general counsel of the United Steelworkers. 

Gimena Sanchez-Garzoli and Anthony Dest work for the Washington Office on Latin America (WOLA)

April 11, 2012 Posted by | Civil Liberties, Economics, Progressive Hypocrite, Subjugation - Torture | , , , , | Leave a comment

Maxing Out

Toward a Maximum Wage

By JOHNNY E. WILLIAMS | CounterPunch | April 10, 2012

Tackling income inequality through the minimum wage alone is an inadequate way to counter the economy’s anti-egalitarian tendencies. The minimum wage exists because the federal government recognizes the economy undervalues the average worker’s contribution and fails to provide a fair livable wage. Conversely, the economy’s overvaluing a few people’s contribution is also in need of governmental oversight. Since the government believes the economy is not a reliable gauge for determining how little is too little, it cannot assume the “market” is capable of determining how much is too much. Given this it is incumbent on the federal government to implement an income ceiling to eliminate the extreme income disparity between top and average wage earners.

Before dismissing the maximum wage idea outright, consider President Franklin Delano Roosevelt’s call for 1942 maximum wage of $25,000 a year (in 2012 dollars $364,000) as a means to fuel economic growth and reduce income inequality. In a recent Le Monde Diplomatique article Sam Pizzigati of the Institute for Policy Studies revealed that two short years after President Roosevelt’s proposal, Congress increased the top tax rate to 94% for individual incomes over $200,000 (in 2012 dollars $2.6 million) The 94¢ tax on every dollar over the $200,000 limit helped initiate the longest period of economic growth for the middle class in U.S. history. This tax rate remained in place until President Lyndon Johnson dropped it to under 70% in the late 1960s. About two decades later President Reagan reduced the rate to 50% and then to 28% in 1988 before it settled at today’s 35% rate. But this tax rate overstates the rich’s tax burden given that most of their income [tax payment] comes from the 15% capital gains tax on profits acquired from buying and selling stocks, bonds and assets. This tax rate is about the same as that for working Americans earning between $50,000 and $75,000 before itemized deductions and exemptions.

Opponents of the maximum wage assert that cutting the top tax rates rather than increasing them will spark revenue and job growth. Their “trickle down” rationale assumes that making the rich richer will create good paying jobs, making working people more prosperous. But the trickle down approach and other piecemeal provisions like the minimum wage, earned income tax credit, and other minimalist economic programs and policies have proven ineffective in reversing the growth in income inequality over the last four decades. The ineffectiveness of such programs and policies is apparent in Emmanuel Saez’s recently released study showing that during the current recession one-percenters captured 93 percent of the income growth in both 2009 and 2010. In real dollar terms this means that the bottom 90% income on average declined $127 while the top 1% income increased $106,000.

One the best and most proficient ways to restart job growth and alleviate poverty and inequality, the imposition of a maximum allowable wage tied to minimum wage and enforced through a progressive income tax. The maximum is set at a specific multiple (maybe twenty five times) of the minimum wage, so that all income over the multiple limit is subject to a 95% to 100% tax. Limiting and linking average and top wage earners in this way will help Americans clearly see that poverty and suffering is necessary for an individual to accumulate wealth.

The fact is that income and wealth inequality impedes economic recovery, and efficiency and stability because it weakens demand for goods and services. By implementing a maximum wage the government could generate billions in revenue that can be invested in health, education, technology and infrastructure maintenance in ways that ensure the economy is sustainable, productive and efficient.

Europeans, especially those dealing with economic austerity measures, are already debating how to enact a maximum wage policy to ameliorate economic calamity. The idea of the maximum wage is also starting to resonate in the United States with a public that is increasingly aware of the destructive and anti-democratic consequences of lopsided disparities in income and wealth. This emerging awareness encourages people to question and challenge the legitimacy of economic values and a political system that, as Martin Luther King, Jr. put it: “permit necessities to be taken from the many to give luxuries to the few.”

Johnny E. Williams is an Associate Professor in the Department of Sociology at Trinity College.    

April 10, 2012 Posted by | Economics, Timeless or most popular | , , , , , , | Leave a comment