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On Saudi Arabia in Paksitan

Angry Arab News Service | July 25, 2011

A comrade in Pakistan who wishes to remain anonymous wrote me this:

“Cmd. Junaid is correct that the Westernized, English-speaking elite of Pakistan is obsessed with Saudi Arabia to the exclusion of examining the US. It’s true that they are generally dependent on the latter for funding for their NGOs, that is, when they are just not so colonized mentally to think that Western bourgeois democracy is god’s gift to humanity, so that they actively and aggressively write crap like this:  — an article riddled with omission and inaccuracy. However, one should not throw the baby out with the bathwater. What has to be understood is that Saudi Arabia and, importantly, UAE have interests in Pakistan that, while on the whole are subordinate to US imperialism, also have a logic of their own.

This has to be contextualized in US strategy in West Asia, including particularly CENTO. (see Hamza Alavi’s article on the Pak-US military alliance here:) Pakistan was seen as a mercenary for West Asian reactionaries. To some extent, it did fulfill this role — for instance, Pak General Zia ul-Haq who later was dictator for over ten years was in command of Pakistani troops in Jordan who helped massacre Palestinian freedom fighters in Black September. Meanwhile, Saudi Arabia has funded political Islam in Pakistan since at least the late 1960s as a response to increasing leftist sentiment, according to Vali Nasr. This has to be seen as part of the same strategy that led to Saudi support for the Ikhwan in Egypt during the same period, i.e., as a response to secular nationalism and leftism. In 1970s, millions of Pakistanis migrated to Saudi and UAE to work (in shitty conditions, but relatively better paying), so that Pakistan’s political economy is structurally dependent on that of the Gulf. (Still, 40-45% of remittances come from just two sources — Saudi and UAE.) Moreover, Gulf capital is aggressively looking at Pakistan as a source of raw materials (incl. now skilled labour), a destination for excess capital, and a large market — classical imperialism…

That said, Junaid is correct that political Islam that now ravages Pakistan is primarily a result of 80s policies of Pakistan’s ruling elites, the US and the Gulf regimes — but the basic network was put in place in the latter 1960s and 1970s. More fundamentally, Pakistan’s ruling elites have sought to use these political Islamists as buffers and proxies against Indian expansionism. This has other spillover benefits for Pakistan’s ruling classes, who seek to use Islamic extremism as a counterweight to the secular nationalism of oppressed nationalities (e.g., the Baloch and Sindhi) in Pakistan. This is also an important angle that has to be identified.

Moreover, Pakistani mercenaries are hired by regimes in Oman and Bahrain, and probably others, to suppress uprisings there. Pakistan Army (and civilian elites too, note President Zardari speaking in favour of “stability” in West Asia) is seen as a vital ally of reactionary regimes in West Asia. So we have to understand the back and forth here in order to assess possibilities for liberation in North Africa/West Asia as well as Central Asia/South Asia. Meanwhile, let us be clear that Gulf countries are built literally on the back of migrant labourers which includes millions of Pakistanis, who do not receive the proper value of their work and are subject to innumerable abuses otherwise. These things are intimately tied, and strategies for emancipation have to take this into account.

I don’t know what is the state of this debate in Arab intellectual and progressive circles because I don’t know Arabic. In Pakistan, it is highly underdeveloped in both English and Urdu, not sure about the other nationalities’ languages. Rather than looking at this political history and political economy — and importantly, situating it in the context of world imperialism in which the leading and directing force is the US — Pakistan’s Westernized elite is obsessed with Saudi Arabia for its “cultural” imperialism (via Wahhabism). This means that it is harder for them to attend classical music programmes, or to wear sleeveless tops, or to drink alcohol — while the vast majority of the country is facing the obscene violence of not being able to make ends meet on a day to day basis, which is a result of dependent, neoliberal development in the context of US-led world imperialism.

July 25, 2011 Posted by | Economics, Timeless or most popular | Leave a comment

Reality check on Carbon Limits

By ROBERT BRYCE | CounterPunch | July 25, 2011

Given the parlous state of the US economy, discussions about climate change, carbon dioxide emissions, and cap-and-trade schemes have largely disappeared from the political discussion.

That’s a good thing. Why? Even if the US were to launch an attempt to cut its carbon dioxide emissions by 80% by 2050, as President Barack Obama has said it should, the rest of the world will keep using carbon-based fuels, and lots of them, thereby swamping any reductions that might happen here. But don’t take my word for it. You need only look at the latest data from the BP Statistical Review of World Energy to understand that reality. To underscore that point, let’s try a short pop quiz.

Which country which has had the biggest percentage growth in carbon dioxide emissions over the past decade?

A: Vietnam.

Next question: Which country has had the biggest percentage growth in electricity generation?

A: Vietnam.

Which country had biggest growth in coal use?

A: Vietnam

Indeed, over the past decade, only one country, China, had faster growth in primary energy consumption than did Vietnam. And Vietnam, where some 58,000 US soldiers died, stands as a proxy for many countries in the developing world. As those countries grow their economies — their energy use and their carbon dioxide emissions — the hope for any kind of a global cap, or tax, on carbon emissions becomes ever more remote.

To be sure, Vietnam’s energy use is a tiny fraction of that used by countries like China and the US. In 2010, Vietnam’s 90 million inhabitants consumed about 900,000 barrels of oil equivalent per day. That’s a rounding error when compared to China’s consumption of nearly 49 million barrels of oil equivalent per day or US consumption of nearly 46 million barrels of oil equivalent per day.

Put another way, the average resident of Vietnam now consumes about 0.4 gallons of oil equivalent per day. The average American consumes about 6.3 gallons of oil equivalent per day, while the average Chinese uses 1.3 gallons of oil equivalent per day. In fact, the average Vietnamese now consumes more energy on a daily basis than does the average Pakistani.

But with an average income of less than $1,200 per year, Vietnam is still racing to catch up to the rest of Asia. And with an annual GDP growth rate of nearly 7%, Vietnam has every reason to continue burning as much oil, coal, and natural gas as it possibly can. (1)

Vietnam represents a whole class of fast-growing, populous countries where energy use is growing ferociously and that’s resulting in more carbon dioxide emissions – 33.1 trillion tons in 2010 alone, an increase of 28% over 2001 numbers.

Let me repeat that: over the past decade, global carbon dioxide emissions increased by 28%.

That huge surge in emissions occurred during the same decade that Al Gore was awarded the Nobel Prize, an Emmy, and an Oscar, for his work on the movie, An Inconvenient Truth.  During that same decade, high-profile, heavily publicized meetings were held in Copenhagen and Cancun, where, finally, world leaders were supposed to agree on something, anything, that would stop the world from using hydrocarbons.

Alas, the Vietnamese never got the memo. Or maybe they just haven’t heard Gore’s speeches. Here are the numbers: Over the past decade, Vietnam’s oil use jumped by about 82%, following only Qatar (202%) and China (86%). Over the past decade, coal consumption in Vietnam jumped by 175%, outstripping the percentage growth in Indonesia (134%) and China (128%). And nearly all of that coal is being used to produce electrons.

Over the past decade, Vietnam’s electricity generation increased by a whopping 227%, the fastest growth on the planet. Again, the total amount of electricity used in Vietnam – about 100 terawatt-hours — remains miniscule when compared to US consumption of 4,326 terawatt-hours. But the essentiality of electricity to modernity is incontrovertible. The countries that can produce cheap, abundant, reliable electricity can grow their economies, educate their citizens and pull their people out of poverty. And those that can’t, can’t. And that’s why all of the past – and all of the future meetings of the UNFCCC – will result in failure to put a hard cap or effective tax on global carbon dioxide: the developing countries know that limiting their access to hydrocarbons will necessarily retard the growth of their economies.

Look at the rest of Asia. Even if we forget for a moment about the 2.1 billion people living in China and India, we can see countries like Indonesia, where electricity generation has increased by nearly 64% over the past decade. Or consider Thailand where electricity use has jumped by 55%. Or consider Egypt, where electricity use is up 79%. That has meant big increases in carbon dioxide emissions. Over the past decade, Indonesia’s carbon dioxide emissions increased by 40%, Thailand’s jumped by 51% and Egypt’s grew by 53%.

In December, the United Nations Framework Convention on Climate Change will meet in Durban, South Africa to hold yet another climate meeting. And it will fail just as all of its predecessors have failed.

Why? Coal use is soaring. The latest BP data shows that over the past decade, global coal use is up 47%, that’s faster growth than what was seen in electricity generation (up 36%), natural gas use (up 30%), and oil consumption (up 13%). Environmentalists around the world love to vilify coal. But for countries like Vietnam, Pakistan, China, and others, coal keeps the lights on. That’s certainly true here in the US, but over the past decade, domestic coal consumption has fallen by 5%.

Thus far, I’ve given you a lot of percentages.  But focus, please, on these two: 27% and 28%. Since 2001, global energy use is up by 27% and carbon dioxide emissions are up 28%. Put another way, over the last decade, global energy use increased by about 53 million barrels of oil equivalent per day, that’s equal to about six Saudi Arabias’ worth of daily oil output. Energy use is soaring as more people from Hanoi to Hangzhou move into the modern world. And that means that huge cuts in carbon dioxide emissions – by 80% as Obama claims the US must – simply will not happen.

Like it or not, the world economy runs on hydrocarbons – coal, oil, and natural gas. And that will remain true for many decades to come. Energy transitions happen over decades or centuries, not years. Countries like Vietnam, China, and India, will never agree to any tax or limit on carbon dioxide. Nor does it make much sense at all to impose heavy levies on the US, and other developed countries. Why? Well, over the last decade, US carbon dioxide emissions fell – by 1.7%.

Every once in a while, we need to focus on the numbers and put aside the hype. The scale of current global energy use — about 241 million barrels of oil equivalent per day — is the same as 28 Saudi Arabias of energy production. The great cities of the world, whether it’s Rio, Kyoto, Copenhagen, Cancun, or Durban, run on highly processed forms of energy:  electricity, ultra-low-sulfur motor fuel, and natural gas. And they need lots of it.

Global leaders should give up their fixation on  cutting carbon dioxide emissions. Significant cuts will not happen voluntarily, anywhere. Instead, leaders should be focusing on providing as much cheap, abundant, dispatchable power to their citizens as possible. And to see how that’s happening in the developing world, we need only look at Hanoi.

July 25, 2011 Posted by | Economics, Timeless or most popular | Leave a comment

Puppets in Revolt: Afghanistan, Iraq, Pakistan and the United States

By James Petras :: 07.22.2011

Introduction

Empires are built through the promotion and backing of local collaborators who act at the behest of imperial rulers. They are rewarded with the outward symbols of authority and financial handouts, even as it is understood that they hold their position only at the tolerance of their imperial superiors.

Imperial collaborators are referred to by the occupied people and the colonial resistance as “puppets” or “traitors”; by western journalists and critics as “clients”; by the imperial scribes and officials as “loyal allies” as long as they remain obedient to their sponsors and paymaster.

Puppet rulers have a long and ignoble history during the 20th century. Subsequent to US invasions in Central America and the Caribbean a whole string of bloody puppet dictators were put in power to implement policies favorable to US corporations and banks and to back US regional dominance. Duvalier (father and son) in Haiti, Trujillo in the Dominion Republic, Batista in Cuba, Somoza (father and son) in Nicaragua and a host of other tyrants served to safeguard imperial military and economic interests, while plundering the economies and ruling with an iron fist.

Rule via puppets is characteristic of most empires. The British excelled in propping up tribal chiefs as tax collectors, backing Indian royalty to muster sepoys to serve under British generals. The French cultivated a francophone African elite to provide cannon fodder for its imperial wars in Europe and Africa. “Late” imperial countries like Japan set up puppet regimes in Manchuria and Germany promoted the Vichy puppets in occupied France and the Quisling regime in Norway.

Post-Colonial Rule: Nationalists and Neo-Colonial Puppets

Powerful national liberation, anti-colonial movements following World War II, challenged European and US imperial dominance in Africa, Asia and Latin America. Faced with the enormous costs of reconstruction in Europe and Japan and domestic mass movements opposed to continuing colonial wars, the US and Europe sought to retain their economic holdings, military bases via ‘political collaborators’. They would assume administrative, military and political responsibilities, forging new links between the formally independent country and their old and new imperial masters. The economic and military institutional continuities between colonial and post-colonial regimes were defined as ‘neo-colonialism’.

Foreign aid gave birth to and enriched an ‘indigenous’ kleptocratic bourgeoisie which provided a fig leaf to imperial resource extraction. Military aid, training missions and overseas scholarships trained a new generation of military and civilian bureaucrats inculcated with imperial-centered ‘world views’ and loyalties. The military-police-administrative apparatus was perceived by imperial rulers as the best guarantor of the emerging order, given the fragility of neo-colonial rule, their narrow base of appeal and the demands of the masses for substantive socio-economic structural changes to accompany political independence.

The post-colonial period was riven with long term large-scale anti-imperial social revolutions (China, Indo-China), military coups (throughout the three continents), international civil wars (Korea) and mostly successful nationalist-populist transformations (Iraq, India, Indonesia, Egypt, Algeria, Argentina, Brazil, Ghana, etc.). The latter became the bases for the non-aligned movements. Outright ‘colonial settler regimes’ (South Africa, Israel/Palestine, Southern Rhodesia/Zimbabwe) were the exception. Complex “associations”, depending on the specific power relations between empire and local elites, generally increased income, trade and investments for the decolonized newly independent countries. Independence created an internal dynamic based on large scale state intervention and a mixed economy.

The post-colonial period of radical nationalist and socialist uprisings, lasted less than a decade in most of the three continents. By the end of the 1970’s, imperial backed coups overthrew national-populist and socialist regimes in the Congo, Algeria, Indonesia, Argentina, Brazil, Chile and in numerous other countries. The newly independent radical regimes in the former Portuguese colonies, Angola, Mozambique, Guinea-Bissau and the nationalist regimes and movements in Afghanistan, Iraq, Syria and Latin America were severely weakened by the collapse of the USSR and China’s conversion to capitalism. The US appeared as the sole ‘superpower’ without a military and economic counterweight. US and European military and economic empire builders saw an opportunity to exploit natural resources, expropriate thousands of public enterprises, build a network of military bases and recruit new mercenary armies to extend imperial dominance.

The question arose as to the form the new US empire would take: the means through which the remaining nationalist rulers would be ousted. Equally important: with the demise of the USSR and China/Indo-China’s conversion to capitalism, what ideology or even ‘argument’ would serve to justify the powerful thrust of post-colonial, empire building?

Washington’s New World Order: Colonial Revivalism and Contemporary Puppetry:

Western imperialism’s recovery from the defeats during the national independence struggles (1945-1970’s) included the massive rebuilding of a new imperial order. With the collapse of the USSR, the incorporation of Eastern Europe as imperial satellites and the subsequent conversion of radical nationalists (Angola, Mozambique etc.) to kleptocrat free marketers, a powerful thrust was given to White House visions of unlimited dominance, based on projections of uncontested unilateral military power.

The spread of ‘free market ideology’ between 1980 – 2000, based on the ascendancy of neo-liberal rulers throughout Africa, Eastern Europe, Latin America and a large swathe of Asia opened the door for unprecedented pillage, privatizations (mostly the same thing) and the concentration of wealth. Corresponding to the pillage and the concentration of a unipolar military power, a group of ultra-militarists, so-called neo-conservatives ideologues, deeply imbued with the Israeli colonial mentality entered into the strategic decision-making positions in Washington, with tremendous leverage in European spheres of power – especially in England.

History went into reverse. The 1990’s were inaugurated with colonial style wars, launched against Iraq and Yugoslavia, leading to the break-up of states and the imposition of puppet regimes in (Northern Iraq) ‘Kurdistan’, Kosovo, Montenegro and Macedonia (former Yugoslavia). Military success, quick and low cost victories, confirmed and hardened the beliefs of the neo-conservative and neo-liberal ideologues that empire building was the inevitable wave of the future. Only an appropriate political trigger was necessary to mobilize the financial and human resources to pursue the new military driven empire.

The events of 9/11/2001 were thoroughly exploited to launch sequential wars of colonial conquest. In the name of a “word wide military crusade against terrorism”, plans were made, massive funds were allocated and a mass media propaganda blitz was launched, to justify a series of colonial wars.

The new imperial order began with the invasion of Afghanistan (2001) and the overthrow of the Taliban Islamic-nationalist regime, (which never had anything to do with 9/11). Afghanistan was occupied by the US – NATO – mercenary armies but not conquered. The US invasion and occupation of Iraq led the Islamic, nationalist and trade union anti-colonial forces to regroup and prolonged armed and civil resistance movements.

Because of widespread nationalist and anti-Zionist influence within the existing Iraqi civilian, police and military apparatus, neo-conservative ideologues in Washington opted for the total dismantling of the state. They attempted to refashion a colonial state based on sectarian leaders, local tribal chiefdoms, foreign contractors and the appointment and ‘clearance’ of reliable exile politicians as ‘presidential or ‘prime ministerial’ national fig leafs for the colonized state.

Pakistan was a special case of imperial penetration, military intervention and political manipulation, linking large scale military aid, bribes and corruption to establish a puppet regime. The latter sanctioned sustained violations of sovereignty by US warplanes (“drones” and piloted), commando operations and the large scale mobilization of the Pakistan military for US counter-insurgency operations displacing millions of Pakistan ‘tribal’ peoples.

The Puppet Regime Imperative

Contrary to US and EU propaganda, the invasions and occupation of Iraq and Afghanistan and the military interventions in Pakistan were never popular. They were actively and passively opposed by the vast majority of the population. No sooner were the colonial civil officials imposed by force of arms and efforts began to administer the country then passive popular and sporadic armed resistance emerged. The colonial officials were seen for what they were: an alien, exploitative, presence. Treasuries were looted, the entire economy was paralyzed, elementary services (water, electricity, sewage systems, etc.) did not function, and millions were uprooted. The wars and occupations radically decimated the pre-colonial society and the colonial officials were hard pressed to create a replacement.

Billions in military spending failed to create a civil service capable of governance. The colonial rulers had severe problems locating willing collaborators with technical or administrative experience. Those willing to serve lacked even a modicum of popular acceptance.

The colonial conquest and occupation eventually settled on establishing a parallel collaborator regime which would be financed and subordinate to the imperial authorities. Imperial strategists believed they would provide a political façade to ‘legitimate’ and negotiate with the occupation. The enticement to collaborate was the billions of dollars channeled into the colonized state apparatus (and easily plundered through phony ‘reconstruction’ projects) to compensate for the risks of political assassination by nationalist resistance fighters. At the pinnacle of the parallel regimes were the puppet rulers, each certified by the CIA for their loyalty, servility and willingness to sustain imperial supremacy over the occupied people. They obeyed Washington’s demands to privatize public enterprises and supported Pentagon recruitment of a mercenary army under colonial command.

Hamid Karzai was chosen as the puppet ruler in Afghanistan, based merely on his family ties with drug traffickers and compatibility with warlords and elders on the imperial payroll. His isolation was highlighted by the fact that even the presidential guard was made up of US Marines. In Iraq, US colonial officials in consultation with the White House and the CIA chose Nouri al Maliki as the “Prime Minister” based on his zealous “hands on” engagement in torturing resistance fighters suspected of attacking US occupation forces.

In Pakistan the US backed a convicted felon on the lam, Asif Ali Zardari as President. He repeatedly demonstrated his accommodating spirit by approving large scale, long term US aerial and ground operations on the Pakistan side of the Afghan border. Zardari emptied the Pakistani treasury and mobilized millions of soldiers to assault and displace frontier population centers sympathetic to the Afghan resistance.

Puppets in Action: Between Imperial Subservience and Mass Isolation

The three puppet regimes have provided a fig leaf for the imperial savaging of the colonized people of the countries they preside over. Nouri al Maliki has over the past 5 years, not only justified the US occupation but actively promoted the assassination and torture of thousands of anti-colonial activists and resistance fighters. He has sold billion dollar oil and gas concessions to overseas oil companies. He has presided over the theft (‘disappearance’ or “unaccountable”) of billions of dollars in oil revenues and US foreign aid (squeezed from US tax payers). Hamid Karzai, who has rarely ventured out of the presidential compound without his US Marine bodyguards, has been ineffective in gathering even token support except through his extended family. His main prop was narco warlord brother, Ahmed Wali Karzai, killed by his CIA certified Chief of Security. Since Karzai’s domestic support is extremely narrow, his main functions include attending external donor meetings, issuing press statements and rubber stamping each increase (“surge”) in US troops. The intensified use of Special Forces death squads and drone warplanes, inflicting high civilian casualties, has further enraged Afghans. The entire civilian and military apparatus nominally under Karzai is unquestionably, penetrated by Taliban and other nationalist groups, making him totally dependent on the US troops and warlords and drug traffickers on the CIA payroll.

The Pakistani puppet Arif Ali Zardari, despite strong resistance from sectors of the military and intelligence agencies, and despite 85% popular hostility to the US, has plunged the country into a series of sustained large scale military offenses against Islamist communities in the Northeast territories, displacing over 4 million refugees. Under orders from the White House to escalate the war against Taliban sanctuaries and their Pakistan armed allies, Zardari has lost all credibility as a ‘national’ politician. He has outraged nationalist loyalties by ‘covertly’ approving US gross violations of sovereignty by allowing US Special Forces to operate from Pakistan bases in their murderous operations against local Islamic militants. The daily US drone bombing of civilians in villages, on highways and in markets has led to a near universal consensus of his puppet status. While puppet rulers provide a useful façade for external propaganda purposes, their effectiveness diminishes to zero domestically, as their subservience before the imperial slaughter of non-combatants increases. The initial imperial propaganda ploy portraying the puppets as “associate” or “power-sharers” loses credibility as it becomes transparent that the puppet rulers are impotent to rectify imperial abuses. This is especially the case with pervasive human rights violations and the destruction of the economy. Foreign aid is widely perceived as nurturing widespread extortion, corruption and incompetent administration of basic services.

As the domestic resistance grows and as the imperial countries’ ‘will’ to continue a decade long war and occupation wanes, the puppet rulers, feel intense pressure to make, at least, token expressions of ‘independence’. The puppets begin to “talk back’ to the puppet-masters, attempting to play to the vast chorus of mass indignation over the most egregious occupation crimes against humanity. The colonial occupation begins to sink, under the weight of billion dollar a week expenditures from depleted treasuries.The token troop withdrawals, signal the growing importance and dependence on a highly suspect ‘native’ mercenary force, causing the puppets increasingly to fear for loss of office and life.

Puppet rulers begin to contemplate that it is time to probe the possibilities of making a deal with the resistance; time to voice popular indignation at civilian killings; time to praise the withdrawal of troops, but nothing consequential. No abandoning the protection of the imperial Praetorian Guard or, god forbid the latest tranche of foreign aid. An opportune time for Ali Zardari to criticize the US military intrusion, killing Bin Laden. Time for Al Maliki to call on the US to “honor” its troop withdrawal in Iraq. Time for Karzai to welcome the Afghan military takeover of a province of least resistance (Bamiyan). Are the puppets in some sort of ‘revolt’ against the puppet master? Washington apparently is annoyed: $800 million in aid to Pakistan has been held up pending greater military and intelligence collaboration in scourging the countryside and cities in search of Islamic resistance fighters. The Taliban assassination of Karzai’s brother and top political adviser Jan Mohamed Khan, important assets in buttering the puppet regime, signals that the puppet rulers’ occasional critical emotional ejaculations are not resonating with the Taliban “shadow government” which covers the nation and prepares a new military offensive.

The puppet ‘revolts’ neither influence the colonial master nor attract the anti-colonial masses. They signal the demise of a US attempt at colonial revivalism. It spells the end of the illusion of the neo-conservative and neo-liberal ideologists who fervently believed that US military power was capably of invading, occupying and ruling the Islamic world via shadow puppets projected over a mass of submissive peoples. The colonial example of Israel, a narrow strip of arid coastline, remains an anomaly in a sea of independent Islamic and secular states. Efforts by its US advocates to reproduce Israel’s relative consolidation through wars, occupations and puppet regimes has instead led to the bankruptcy of the US and the collapse of the colonial state. Puppets will be in flight; troops are in retreat; flags will be lowered and a period of prolonged civil war is in the offing. Can a democratic social revolution replace puppets and puppet masters? We in the United States live in a time of profound and deepening crises, in which rightwing extremism has penetrated the highest office and has seized the initiative for now but hopefully not forever. The overseas colonial wars are coming to a close, are domestic wars on the horizon?

July 23, 2011 Posted by | Economics, Militarism, Timeless or most popular | Leave a comment

The Pentagon & slave labor in U.S. prisons

June 14, 2011 | Kinetic Truth

Prisoners earning 23 cents an hour in U.S. federal prisons are manufacturing high-tech electronic components for Patriot Advanced Capability 3 missiles, launchers for TOW (Tube-launched, Optically tracked, Wire-guided) anti-tank missiles, and other guided missile systems. A March article by journalist and financial researcher Justin Rohrlich of World in Review is worth a closer look at the full implications of this ominous development. (minyanville.com)

The expanding use of prison industries, which pay slave wages, as a way to increase profits for giant military corporations is a frontal attack on the rights of all workers.

Prison labor — with no union protection, overtime pay, vacation days, pensions, benefits, health and safety protection, or Social Security withholding — also makes complex components for McDonnell Douglas/Boeing’s F-15 fighter aircraft, the General Dynamics/Lockheed Martin F-16, and Bell/Textron’s Cobra helicopter. Prison labor produces night-vision goggles, body armor, camouflage uniforms, radio and communication devices, and lighting systems and components for 30-mm to 300-mm battleship anti-aircraft guns, along with land mine sweepers and electro-optical equipment for the BAE Systems Bradley Fighting Vehicle’s laser rangefinder. Prisoners recycle toxic electronic equipment and overhaul military vehicles.

Labor in federal prisons is contracted out by UNICOR, previously known as Federal Prison Industries, a quasi-public, for-profit corporation run by the Bureau of Prisons. In 14 prison factories, more than 3,000 prisoners manufacture electronic equipment for land, sea and airborne communication. UNICOR is now the U.S. government’s 39th largest contractor, with 110 factories at 79 federal penitentiaries.

The majority of UNICOR’s products and services are on contract to orders from the Department of Defense. Giant multinational corporations purchase parts assembled at some of the lowest labor rates in the world, then resell the finished weapons components at the highest rates of profit. For example, Lockheed Martin and Raytheon Corporation subcontract components, then assemble and sell advanced weapons systems to the Pentagon.

Increased profits, unhealthy workplaces

However, the Pentagon is not the only buyer. U.S. corporations are the world’s largest arms dealers, while weapons and aircraft are the largest U.S. export. The U.S. State Department, Department of Defense and diplomats pressure NATO members and dependent countries around the world into multibillion-dollar weapons purchases that generate further corporate profits, often leaving many countries mired in enormous debt.

But the fact that the capitalist state has found yet another way to drastically undercut union workers’ wages and ensure still higher profits to military corporations — whose weapons wreak such havoc around the world — is an ominous development.

According to CNN Money, the U.S. highly skilled and well-paid “aerospace workforce has shrunk by 40 percent in the past 20 years. Like many other industries, the defense sector has been quietly outsourcing production (and jobs) to cheaper labor markets overseas.” (Feb. 24) It seems that with prison labor, these jobs are also being outsourced domestically.

Meanwhile, dividends and options to a handful of top stockholders and CEO compensation packages at top military corporations exceed the total payment of wages to the more than 23,000 imprisoned workers who produce UNICOR parts.

The prison work is often dangerous, toxic and unprotected. At FCC Victorville, a federal prison located at an old U.S. airbase, prisoners clean, overhaul and reassemble tanks and military vehicles returned from combat and coated in toxic spent ammunition, depleted uranium dust and chemicals.

A federal lawsuit by prisoners, food service workers and family members at FCI Marianna, a minimum security women’s prison in Florida, cited that toxic dust containing lead, cadmium, mercury and arsenic poisoned those who worked at UNICOR’s computer and electronic recycling factory.

Prisoners there worked covered in dust, without safety equipment, protective gear, air filtration or masks. The suit explained that the toxic dust caused severe damage to nervous and reproductive systems, lung damage, bone disease, kidney failure, blood clots, cancers, anxiety, headaches, fatigue, memory lapses, skin lesions, and circulatory and respiratory problems. This is one of eight federal prison recycling facilities — employing 1,200 prisoners — run by UNICOR.

After years of complaints the Justice Department’s Office of the Inspector General and the Federal Occupational Health Service concurred in October 2008 that UNICOR has jeopardized the lives and safety of untold numbers of prisoners and staff. (Prison Legal News, Feb. 17, 2009)

Racism & U.S. prisons

The U.S. imprisons more people per capita than any country in the world. With less than 5 percent of the world population, the U.S. imprisons more than 25 percent of all people imprisoned in the world.

There are more than 2.3 million prisoners in federal, state and local prisons in the U.S. Twice as many people are under probation and parole. Many tens of thousands of other prisoners include undocumented immigrants facing deportation, prisoners awaiting sentencing and youthful offenders in categories considered reform or detention.

The racism that pervades every aspect of life in capitalist society — from jobs, income and housing to education and opportunity — is most brutally reflected by who is caught up in the U.S. prison system.

More than 60 percent of U.S. prisoners are people of color. Seventy percent of those being sentenced under the three strikes law in California — which requires mandatory sentences of 25 years to life after three felony convictions — are people of color. Nationally, 39 percent of African-American men in their 20s are in prison, on probation or on parole. The U.S. imprisons more people than South Africa did under apartheid. (Linn Washington, “Incarceration Nation”)

The U.S. prison population is not only the largest in the world — it is relentlessly growing. The U.S. prison population is more than five times what it was 30 years ago.

In 1980, when Ronald Reagan became president, there were 400,000 prisoners in the U.S. Today the number exceeds 2.3 million. In California the prison population soared from 23,264 in 1980 to 170,000 in 2010. The Pennsylvania prison population climbed from 8,243 to 51,487 in those same years. There are now more African-American men in prison, on probation or on parole than were enslaved in 1850, before the Civil War began, according to Law Professor Michelle Alexander in the book “The New Jim Crow: Mass Incarceration in the Age of Colorblindness.”

Today a staggering 1-in-100 adults in the U.S. are living behind bars. But this crime, which breaks families and destroys lives, is not evenly distributed. In major urban areas one-half of Black men have criminal records. This means life-long, legalized discrimination in student loans, financial assistance, access to public housing, mortgages, the right to vote and, of course, the possibility of being hired for a job.

July 22, 2011 Posted by | Civil Liberties, Economics, Militarism, Video | Leave a comment

NAFTA-Look Alikes

By LAURA CARLSEN | CounterPunch | July 18, 2011

The full-court press on the FTAs represents a reversal for a president elected on a trade reform platform. During the presidential campaign, Barack Obama proclaimed his opposition to the NAFTA-style FTAs and boasted of his stance against the devastating North American and Central American agreements. As candidate Obama, he carefully distanced himself from the open-market, pro-corporate policies of his predecessor, calling for significant changes to the NAFTA model, including enforceable labor and environmental standards, and consumer protections.

The Global Crisis

In the three years since Obama wooed voters with talk of bold changes in trade policy, the need for reforms has reached crisis proportions. The global economic crisis left the United States with skyrocketing un- and under-employment rates. The government paid billions of dollars in bailout money to the corporations who caused the crisis. These corporations then turned around to post record profits and hand out astronomical executive pay bonuses. The evidence that FTA-fueled outsourcing benefits those corporations while putting Americans out of work has piled up, and polls show that a majority of U.S. citizens oppose NAFTA-style FTAs.

Abroad, labor violations and increasing inequality have exacerbated the plight of poor and working people in FTA countries, while creating a new class of mega-rich that often control national economies.

This would seem to be precisely the moment to make good on the promises to fix trade and investment policy, and to give workers everywhere a fair shake in a globalized economy that has been severely skewed toward the interests of powerful corporations — to devastating effect.

Instead, the Obama administration has gone from the audacity of hope to the audacity of presenting three pro-corporate trade agreements to a public suffering from a nearly 10 percent unemployment rate. As United Steel Workers President Leo Gerard concludes in a letter to Congress opposing the trade agreements, “Trade deals force working Americans to assume all the risk and encourage big multinationals to reap all the rewards.”

NAFTA Look-alikes

The new agreements look nearly identical to the NAFTA model, despite some tweaks and promises of advances that are mostly left outside the actual text of the agreements. Some of the most noxious elements that persist in the FTAs before Congress are: prohibitions on financial sector regulation and capital controls, foreign investment incentives that encourage off-shoring, separate legal regimes in which corporations can sue governments in specialized tribunals, weak environmental standards, vague and toothless labor standards, and intellectual property rules that monopolize knowledge needed for the public good.

The Economic Policy Institute calculates that the South Korean FTA alone will cost 159,000 U.S. jobs. Department of Commerce data shows that over the past decade of free trade policy multinational corporations cut their U.S. workforce by 2.9 million and increased overseas employment by 2.4 million. Under these trade and investment regimes, U.S. workers clearly suffer, which is why voters have supported candidates critical of NAFTA-style free trade. Although job displacement is frequently viewed as a zero-sum system where workers of different nations compete, the reality is that decent jobs — with dignified working conditions and real labor rights — are lost everywhere. FTAs turn the world into a global labor bazaar for corporations to bargain-hunt.

Labor unions in the countries purportedly hungering for a U.S. FTA overwhelmingly oppose them. Colombian labor organizations have consistently taken a stand against the Colombia FTA, asserting that it creates binding terms between two vastly unequal economies; would negatively affect agriculture, manufacturing, medicines and other vital sectors; would generate few if any net jobs; and would place thousands of local businesses in jeopardy. A group of Korean unions, farmers, and civil society groups traveled to Washington last January to “prevent the negative consequences that the Korea-US FTA will have on both of our countries.”

Both groups have presented their testimony to the U.S. Congress, exploding another myth: that FTAs are a “reward” to be bestowed on deserving allies. Powerful economic interests in these nations – typically over-represented by their governments — have brought tremendous pressure to bear in favor of the agreements. Meanwhile, the poor, workers, small farmers, the displaced, and indigenous and ethnic organizations nearly unanimously oppose them.

Colombians Against the FTA

A letter to the U.S. Congress signed by 431 U.S. and Colombian organizations urges members to reject the U.S.-Colombia FTA, citing “serious labor, human rights, Afro-Colombian, indigenous, and environmental concerns in Colombia.” The letter points out that Colombia continues to be “the most dangerous country in the world for trade union activists” and cites a 94 percent impunity rate for assassins of labor leaders. Fifty-one trade unionists were killed in 2010, and killings continue unabated in 2011.

An Action Plan developed between the U.S. and Colombian governments to assuage concerns does not form part of the binding text of the agreement. At this stage, the plan amounts to good intentions without establishing a firm basis for collective bargaining for cooperative members, or clear benchmarks for reducing violence, abuses, and impunity.

Promoters have countered criticisms of the Colombian government’s labor practices by asserting that increased U.S. investment can serve as a positive force in upholding workers’ rights. This argument has not been borne out in practice. In Guatemala, unionist murders increased following passage of CAFTA. The logic is simple. With more powerful economic interests in the country competing in a globalized economy, companies too often view workers’ rights as economic liabilities.

The debate on the Colombian FTA has also ignored the need to assess the effects of increased foreign investment on the continued armed conflict in Colombia. NAFTA proved that FTAs have much more to do with revamping investment regimes for multinational corporations than with the exchange of goods and services.

These investments also direct money into paramilitaries involved in drug export, money-laundering, and other crimes. There is ample evidence of these shady relations in the past, most notably the recent case of Chiquita’s payoffs to paramilitary organizations as part of “doing business” in Colombia. Such investments, associated with huge agricultural projects and mining ventures, often go hand in hand with violence and displacement. A report on Inter-American Development Bank megaprojects by the Americas Program and the National Alliance of Latin American and Caribbean Communities showed the correlation between the expansion of palm oil mono-crops and forced displacement. At a recent prayer breakfast, Lisa Haugaard of the Latin American Working Group spoke of her experience gathering evidence of landowners expanding cattle ranching or mining operations at the point of a gun.

The many attacks on Afro-Colombian populations as part of this process led 24 members of Congress to write President Obama on July 6 stating, “We are concerned that the FTA would stimulate business development in Colombia at the expense of these vulnerable populations.” The congressional members also note that an estimated 5.2 million people in the country are already displaced – more than one out of nine Colombians.

Jobs First

The Colombia FTA provides the clearest case of why free trade in the context of inequity and violence not only does not help but exacerbates the problems. The question of whether Colombia “deserves” the FTA can be easily answered. No population deserves an international agreement that directly or indirectly promotes displacement, violence, targeted murder, and the continued violation of the rights of indigenous and Afro-American populations.

Labor, human rights, and faith-based organizations are pushing back hard against the FTA onslaught, and offer tools for citizens to make their voices heard over the din of corporate lobbies.

For Congress to turn a deaf ear to those at greatest risk and in greatest need — both in the United States, and in the countries affected by the toxic trio of FTAs now making the rounds — would contradict U.S. values and U.S. public opinion. Especially now, as the U.S. economy still struggles to regain its footing, the best way to rebuild stability is to learn from mistakes of the past and strive for more fairness. A necessary step is to reject the Colombia, South Korea, and Panama Free Trade Agreements.

Laura Carlsen is director of the Americas Program of the Center for International Policy in Mexico City at www.cipamericas.org.

July 18, 2011 Posted by | Economics, Progressive Hypocrite | Leave a comment

No, Obama, We Don’t Need Free Trade Agreements with Panama, Colombia, and Korea

By Ian Fletcher – July 15, 2011

Obama is still pushing for free trade agreements with Panama, Colombia, and Korea, albeit with the thin fig leaf of demanding they be accompanied by money for so-called Trade Adjustment Assistance, a “painkiller” program designed to blunt the harm to laid-off workers.

The Republicans don’t like TAA, which has held up passage of these agreements momentarily, but both sides are still gunning to pass these agreements some time soon.

You think America has learned its lesson from NAFTA, which the Labor Department has estimated cost us 525,000 jobs? Think again.

Take the Korea agreement, for example. President Obama and the Republican leadership want it despite the fact that the Economic Policy Institute has estimated it will cost us 159,000 more jobs over the next five years.

Yes, you read that correctly. At a time when the president says that his number one economic priority is job creation, and has created an entire commission for that purpose, they’re going ahead with it anyway.

Even the official U.S. International Trade Commission has admitted that KORUS-FTA will cause significant job losses. And not just in low-end industries: the ITC foresees the electronic equipment manufacturing industry, with average wages of $30.38 in 2008, as a major victim.

The supposed logic of America swapping junk jobs for high-end jobs simply isn’t the way the economics really works out. Pace free-market mythology, there are actually well-understood reasons for this, if you dig a little into what economists already know.

Was this the Obama America voted for in 2008?

No. That Obama is at an undisclosed location somewhere. He campaigned against KORUS-FTA during the 2008 campaign. (It was originally negotiated, but not ratified by Congress, by Bush in 2007.) Among other things, that Obama said:

I strongly support the inclusion of meaningful, enforceable labor and environmental standards in all trade agreements. As president, I will work to ensure that the U.S. again leads the world in ensuring that consumer products produced across the world are done in a manner that supports workers, not undermines them.

Nice words. Unfortunately, none of them are reflected in KORUS-FTA, which contains no serious new provisions on these issues.

This agreement is essentially a NAFTA clone. It is, in fact, the biggest trade agreement since NAFTA, and the first since Canada with a developed country.

This agreement, like NAFTA and the dozen or so other free trade agreements America has signed since NAFTA, is fundamentally an offshoring agreement. That is, it is about making it easier for U.S.-based multinationals to move production overseas with confidence in the security of their investments in overseas plants.

The provisions to protect workers and consumers are unenforceable window dressing. (That’s why they’re allowed to be in there in the first place.)

Don’t be fooled by the fact that some unions, like the United Auto Workers (UAW), have endorsed the agreement. This is just a cynical ploy by the White House to split the trade union movement in order to keep the AFL-CIO neutral.

The UAW’s out-of-touch leadership is so punch-drunk from the 2008 collapse of the U.S. auto industry that it has lost touch not only with what is good for the American economy as a whole, but with what is good for rank-and-file auto workers. (There’s a rumor in circulation they did a deal with the White House in exchange for protecting pension and other obligations in the auto industry bailout. I can’t prove this, but it would certainly explain a few things.)

Don’t take my word for it, either: in the words of Al Benchich, retired president of UAW Local 909:

The UAW Administration Caucus is the one-party state that controls the UAW at the International level. Every International officer is a member of the Caucus, and they surround themselves with appointed international reps that unquestioningly do their bidding.

No wonder other, more democratic and more intelligent, unions, like Leo Gerard’s United Steelworkers, are criticizing the UAW for its decision to support KORUS-FTA.

Interestingly, the UAW’s past record of criticizing KORUS-FTA is more honest than anything they’re saying right now. For example, here’s what they originally said about this agreement:

KORUS-FTA has inadequate protections and enforcement mechanisms to enforce either the spirit or the letter of the law.

Precisely. And changes made since then are, as noted, minimal.

As an example of how one-sided the treaty is, consider that it now allows — to great rejoicing — America to export 75,000 cars a year to Korea. This translates to a measly 800 jobs. Korea’s exports of cars to the U.S. in 2009, on the other hand?

Try 476,833.

Furthermore, even if the U.S. does get to sell more cars in Korea, American companies will mostly not be making the steel, tires, and other components that go into them, because the agreement allows cars with 65 percent foreign content to count as “American.”

Worse, it allows goods with as much as 65 percent non-South-Korean content to count as “Korean,” opening the door not only to North Korea but to the whole of China. Talk about the camel’s nose in the tent!

Despite what the White House and the U.S. Chamber of Commerce are saying, this agreement makes no sense as a strategy to reduce our horrendous trade deficit. America’s trade deficits have a long record of going up, not down, when we sign trade agreements with other nations.

Paradoxically, trade agreements even seem to sabotage our own trade with foreign nations: according to an analysis by the group Public Citizen, in recent years our exports to nations we have free-trade agreements with have actually grown at less than half the pace of our exports to nations we don’t have these agreements with. So these agreements don’t hold water as trade-expanding measures.

Even leaving aside trade-balance issues, this agreement is a disaster, thanks to something called “investor-state arbitration.” Like NAFTA, it compromises American sovereignty and subjects American democracy to having its own laws overruled by foreign judges as interfering with trade. Under NAFTA to date, over $326 million in damages has been paid out by governments as a result of challenges to natural resource policies, environmental protection, and health and safety measures. There about 80 Korean corporations, with about 270 facilities around the U.S., that would acquire the right to challenge our laws under KORUS-FTA.

What kind of problems could this cause? The U.S. was forced in 1996 to weaken Clean Air Act rules on gasoline contaminants in response to a challenge by Venezuela and Brazil. In 1998, we were forced to weaken Endangered Species Act protections for sea turtles thanks to a challenge by India, Malaysia, Pakistan and Thailand concerning the shrimp industry. The EU today endures trade sanctions by the U.S. for not relaxing its ban on hormone-treated beef. In 1996, the WTO ruled against the EU’s Lome Convention, a preferential trading scheme for 71 former European colonies in the Third World. In 2003, the Bush administration sued the EU over its moratorium on genetically modified foods.

It gets worse. KORUS-FTA also signs away our right (and Korea’s, too, not that this makes it any better) to a wide range of financial regulations of the kind that might have helped avoid the crisis of 2008. For example, it forfeits our right to limit the size of financial institutions. It forfeits our right to place firewalls between different kinds of financial activities in order to prevent volatility in one market from collapsing another. It prevents us from limiting what financial services financial institutions may offer—Enron Savings & Mortgage, here we come… It bans regulation of derivatives. It ban limits on capital flows designed to tame volatile “hot money.”

Why is the U.S. flirting with making such an appalling mistake yet again? Because a) multinational corporations have bought our political system and b) because our government would rather play power politics than keep its own (declining) economic house in order.

July 15, 2011 Posted by | Economics, Progressive Hypocrite | Leave a comment

The True Cost of America’s Wars

By Jack A. Smith | Activist Newsletter | July 7, 2011

During his speech on Afghanistan June 22, President Obama revealed that “Over the last decade, we have spent a trillion dollars on war.” He knew this was a deceptive understatement, as did everyone who keeps close watch on the Bush-Obama wars all these years.

Few Americans , however, have closely followed Washington’s 21st century wars of choice, so a trillion probably sounds right to them, but that amount in 10 years — when the annual cost of air conditioning alone for the U.S. in Afghanistan and Iraq amounts to $20.2 billion a year — is  way off base.

(It’s difficult to conceive of one trillion, so we’ll repeat a method we’ve used before: Sixty seconds comprise a minute. One million seconds  comes out to be about 11½ days. A billion seconds is 32 years. And a trillion seconds is 32,000 years.)

The latest objective estimate for the wars in Iraq and Afghanistan, made public June 29, is between $3.7 trillion and $4.4 trillion (140,800 years), according to the research project “Costs of War” by Brown University’s Watson Institute for International Studies.

The university assembled a team of economists, anthropologists, political scientists, legal experts, and a physician to do this analysis, which included future costs for veterans care and interest on war debts to be paid over the next few decades.

The medical costs are huge. “While we know how many U.S. soldiers have died in the wars (just over 6,000),” the report pointed out, “what is startling is what we don’t know about the levels of injury and illness in those who have returned from the wars. New disability claims continue to pour into the VA, with 550,000 just through last fall.” This doesn’t even include the thousands of deaths and injuries among quasi-military contractors. There are about as many contractors as troops in Iraq and Afghanistan.

It’s impossible to precisely predict the interest costs on these wars. In 2010, $400 billion of our tax money went toward paying off past war debts as far back as the Korean War of the early 1950s. We’ll pay war debts indefinitely because Washington is always borrowing to plan for or start new wars. So far, the U.S.-led NATO war for regime change in Libya is costing American taxpayers about a billion. The Pentagon has blueprints ready for many different kinds of future wars, from small counter-terrorism escapades, to cyberspace and outer space conflicts, to nuclear war, all the way up to World War III.

The Brown University figures may turn out to be underestimates. A few independent studies over the years have been somewhat higher but were brushed aside by the White House and the mass media. This may happen to the Brown calculations as well.

The respected Nobel Prize-winning economist Joseph Stiglitz and Harvard Professor Linda Bilmes wrote a book three years ago estimating the cost of the Iraq war only, based on data collected in 2006. It was titled “The Three Trillion Dollar War.” They based their calculations on the “hidden” costs of the war that include enormous medical care expenses over the next 50 years for tens of thousands of badly wounded soldiers, other benefits, equipment replacement, and interest on war debts.

Stiglitz and Bilmes calculated in 2008 that the combined cost of the Iraq and Afghanistan wars would be between $5 and $7 trillion.  They called these adventures the “credit card wars.” Using a somewhat different methodology a few years ago, the Joint Economic Committee of Congress, estimated the Iraq war ultimately will cost $3.5 trillion. They didn’t include the Afghan war.

Assuming Obama is reelected, the Bush-Obama wars — including Iraq, Afghanistan, Pakistan, Yemen (and Somalia, where the U.S. is now engaged in drone strikes), plus the wars in Obama’s final years — will certainly top $5 trillion in real costs.

In this connection, we cannot forget that current Pentagon spending of around $700 billion a year represents a huge increase since 2001, when it totaled about $380 billion. (By comparison, during this same time period, military spending by Iran — portrayed by Washington, Tel-Aviv and Saudi Arabia as the greatest danger to peace in the Middle East — dropped from $9 billion in 2001 to $7 billion in 2010.)

But Defense Department expenses are only half the story. Double the Pentagon’s $700 billion for a true estimate of the amount of money the U.S. spent on war-related issues  last year. That’s $1.4 trillion a year for the United States. How is this possible?

Instead of just discussing the Pentagon budget, it is essential to also consider Washington’s various other “national security” budgets. That of course includes the costs of Washington’s 16 different intelligence services, the percentage of the annual national debt to pay for past war expenses, Homeland Security, nuclear weapons, additional annual spending requests for Iraq and Afghan wars, military retiree pay and healthcare for vets, NASA, FBI (for its war-related military work), etc. When it’s all included it comes to $1,398 trillion for fiscal 2010, according to the War Resisters League and other sources.

It’s not enough just to take note of the money Washington spent on stalemated wars of imperial choice. It’s fruitful to contemplate where our $5 trillion Bush-Obama war funding might have been invested instead. It could have paid for a fairly swift transition from fossil fuels to a solar-wind energy system for the entire U.S. — a prospect that will now take many decades longer, if at all, as the world gets warmer from greenhouse gases. And there probably would have been enough left to overhaul America’s decaying and outdated civil infrastructure, among other projects.

But while the big corporations, Wall Street and the wealthy are thriving, global warming and infrastructure repair have been brushed aside. States are cutting back on schools and healthcare. Counties and towns are closing summer swimming pools and public facilities. Jobs and growth are stagnant. The federal government is sharply cutting the social service budget, and Medicare et al. are nearing the chopping block.

During his Afghan speech, President Obama also declared that “we take comfort in knowing that the tide of war is receding.” Finally, some “real change we can believe in” — right? Meanwhile, as The White House and Congress slash the deficit, be assured despite a bit of fixing here and there, the military and national security budgets will remain essentially unchanged.

— For the Brown Univ. study, http://costsofwar.org/
— For Stiglitz and Bilmes, http://www.mcclatchydc.com/2008/02/27/28891/nobel-laureate-estimates-wars.html
— For cost of air conditioning, Afghan-Iraq — See Domestic News Briefs below.

July 11, 2011 Posted by | Economics, Militarism | Leave a comment

Multi-Billion-Dollar Terrorists and the Disappearing Middle Class

By James Petras | July 7, 2011

The US government (White House and Congress) spends $10 billion dollars a month, or $120 billion a year, to fight an estimated “50 -75 ‘Al Qaeda types’ in Afghanistan”, according to the CIA and quoted in the Financial Times of London (6/25 -26/11, p. 5). During the past 30 months of the Obama presidency, Washington has spent $300 billion dollars in Afghanistan, which adds up to $4 billion dollars for each alleged ‘Al Queda type’. If we multiply this by the two dozen or so sites and countries where the White House claims ‘Al Qaeda’ terrorists have been spotted, we begin to understand why the US budget deficit has grown astronomically to over $1.6 trillion for the current fiscal year.

During Obama’s Presidency, Social Security’s cost-of-living adjustment has been frozen, resulting in a net decrease of over 8 percent, which is exactly the amount spent chasing just 5 dozen ‘Al Qaeda terrorists’ in the mountains bordering Pakistan.

It is absurd to believe that the Pentagon and White House would spend $10 billion a month just to hunt down a handful of terrorists ensconced in the mountains of Afghanistan. So what is the war in Afghanistan about? The answer one most frequently reads and hears is that the war is really against the Taliban, a mass-based Islamic nationalist guerrilla movement with tens of thousands of activists. The Taliban, however, have never engaged in any terrorist act against the territorial United States or its overseas presence. The Taliban have always maintained their fight was for the expulsion of foreign forces occupying Afghanistan. Hence the Taliban is not part of any “international terrorist network”.

If the US war in Afghanistan is not about defeating terrorism, then why the massive expenditure of funds and manpower for over a decade? Several hypotheses come to mind:

The first is the geopolitics of Afghanistan: The US is actively establishing forward military bases, surrounding and bordering on China.

Secondly, US bases in Afghanistan serve as launching pads to foment “dissident separatist” armed ethnic conflicts and apply the tactics of ‘divide and conquer’ against Iran, China, Russia and Central Asian republics.

Thirdly, Washington’s launch of the Afghan war (2001) and the easy initial conquest encouraged the Pentagon to believe that a low cost, easy military victory was at hand, one that could enhance the image of the US as an invincible power, capable of imposing its rule anywhere in the world, unlike the disastrous experience of the USSR.

Fourthly, the early success of the Afghan war was seen as a prelude to the launching of a sequence of successful wars, first against Iraq and to be followed by Iran, Syria and beyond. These would serve the triple purpose of enhancing Israeli regional power, controlling strategic oil resources and enlarging the arc of US military bases from South and Central Asia, through the Persian Gulf to the Mediterranean.

The strategic policies, formulated by the militarists and Zionists in the Bush and Obama Administrations, assumed that guns, money, force and bribes could build stable satellite states firmly within the orbit of the post-Soviet US empire. Afghanistan was seen as an easy first conquest the initial step to sequential wars. Each victory, it was assumed would undermine domestic and allied (European) opposition. The initial costs of imperial war, the Neo-Cons claimed, would be paid for by wealth extracted from the conquered countries, especially from the oil producing regions.

The rapid US defeat of the Taliban government confirmed the belief of the military strategists that “backward”, lightly armed Islamic peoples were no match up for the US powerhouse and its astute leaders.

Wrong Assumptions, Mistaken Strategies: The Trillion Dollar Disaster

Every assumption, formulated by these civilian strategists and their military counterparts, has been proven wrong. Al Qaeda was and is a marginal adversary; the real force capable of sustaining a prolonged peoples war against an imperial occupier, inflicting heavy casualties, undermining any local puppet regime and accumulating mass support is the Taliban and related nationalist resistance movements. Israeli-influenced US think-tanks, experts and advisers who portrayed the Islamic adversaries as inept, ineffective and cowardly, totally misread the Afghan resistance. Blinded by ideological antipathy, these high-ranking advisers and White House/Pentagon civilian-office holders failed to recognize the tactical and strategic, political and military acumen of the top and middle-level Islamist nationalist leaders and their tremendous reserve of mass support in neighboring Pakistan and beyond.

The Obama White House, heavily dependent on Islamophobic pro-Israel experts, further isolated the US troops and alienated the Afghan population by tripling the number of troops, further establishing the credentials of the Taliban as the authentic alternative to a foreign occupation.

As for the neo-conservative pipe dreams of successful sequential wars, cooked up by the likes of Paul Wolfowitz, Feith, Abrams, Libby et al, to eliminate Israel’s adversaries and turn the Persian Gulf into a Hebrew lake, the prolonged wars in Iraq, Afghanistan and Pakistan have, in fact, strengthened Iran’s regional influence, turned the entire Pakistani people against the US and strengthened mass movements against US clients throughout the Middle East.

Sequential imperial defeats have resulted in a massive hemorrhage of the US treasury, rather than the promised flood of oil wealth from tributary clients. According to a recent scholarly study, the military cost of the wars in Iraq, Afghanistan and Pakistan have exceeded $3.2 trillion dollars (“The Costs of War Since 2001”, Eisenhower Study Group, June 2011) and is growing at over ten billion a month. Meanwhile the Taliban “tightens (its) psychological grip” on Afghanistan (FT 6/30/2011, p. 8). According to the latest reports even the most guarded 5-star hotel in the center of Kabul, the Intercontinental, was vulnerable to a sustained assault and take over by militants, because “high security Afghan forces” are infiltrated and the Taliban operate everywhere, having established “shadow” governments in most cities, towns and villages (FT 6/30/11 p.8).

Imperial Decline, Empty Treasury and the Specter of a Smash-Up

The crumbling empire has depleted the US treasury. As the Congress and White House fight over raising the debt ceiling, the cost of war aggressively erodes any possibility of maintaining stable living standards for the American middle and working classes and heightens growing inequalities between the top 1% and the rest of the American people. Imperial wars are based on the pillage of the US treasury. The imperial state has, via extraordinary tax exemptions, concentrated wealth in the hands of the super-rich while the middle and working classes have been pushed downward, as only low paid jobs are available.

In 1974, the top 1% of US individuals accounted for 8% of total national income but as of 2008 they earned 18% of national income. And most of this 18% is concentrated in the hands of a tiny super-rich 1% of that 1%, or 0.01% of the American population, (FT 6/28/11, p. 4 and 6/30/11, p. 6). While the super-rich plunder the treasury and intensify the exploitation of labor, the number of middle income jobs is plunging: From 1993 to 2006, over 7% of middle income jobs disappeared (FT 6/30/11, p. 4). While inequalities may be rising throughout the world, the US now has the greatest inequalities among all the leading capitalist countries.

The burden of sustaining a declining empire, with its the monstrous growth in military spending, has fallen disproportionately on middle and working class taxpayers and wage earners. The military and financial elites’ pillage of the economy and treasury has set in motion a steep decline in living standards, income and job opportunities. Between 1970 -2009, while gross domestic product more than doubled, US median pay stagnated in real terms (FT 7/28/11, p. 4). If we factor in the added fixed costs of pensions, health and education, real income for wage and salaried workers, especially since the 1990’s, has been declining sharply.

Even greater blows are to come in the second half 2011: As the Obama White House expands its imperial interventions in Pakistan, Libya and Yemen, increasing military and police-state spending, Obama is set to reach budgetary agreements with the far right Republicans, which will savage government health care programs, like MEDICARE and MEDICAID, as well as Social Security, the national retirement program. Prolonged wars have pushed the budget to the breaking point, while the deficit undermines any capacity to revive the economy as it heads toward a ‘repeat recession’.

The entire political establishment is bizarrely oblivious to the fact that their multi-hundred- billion-dollar pursuit of an estimated 50-75 phantom Al Qaeda terrorists in Afghanistan has hastened the disappearance of middle income jobs in the US. The entire political spectrum has turned decisively to the Right and the Far-Right. The debate between Democrats and Republicans is over whether to slash four trillion or more from the last remnants of our country’s social programs. The Democrats and the Far-Right are united as they pursue multiple wars while currying favor and funds from upper 0.01% super-rich, financial and real estate moguls whose wealth has grown so dramatically during the crisis!

Conclusion

But there is a deep and quiet discomfort within the leading circles of the Obama regime: The “best and brightest” among his top officials are scampering to jump ship before the coming deluge: the Economic Guru Larry Summers, Rahm Emmanuel, Stuart Levey, Peter Orzag, Bob Gates, Tim Geithner and others, responsible for the disastrous wars, economic catastrophes, the gross concentration of wealth and the savaging of our living standards, have walked out or have announced their ‘retirement’, leaving it to the smiling con-men – President Obama and Vice-President ‘Joe’ Biden – and their ‘last and clueless loyalists’ to take the blame when the economy tanks and our social programs are wiped out. How else can we explain their less-than-courageous departures (to ‘spend more time with the family’) in the face of such a deepening crisis?

The hasty retreat of these top officials is motivated by their desire to avoid political responsibility and to escape history’s indictment for their role in the impending economic debacle. They are eager to hide from a future judgment over which policy makers and leaders and what policies led to the destruction of the American middle and working classes with their good jobs, stable pensions, Social Security, decent health care and respected place in the world.

July 10, 2011 Posted by | Economics, Militarism, Timeless or most popular, Wars for Israel | Leave a comment

Colombia’s choice, biofuel exports or social justice

By Stewart Vriesinga | CPTnet | 7 July 2011

Christian Peacemaker Jenny Rodriguez and I visited the community of Las Pavas in May. It was good to see them back on their land, where I first met them in March of 2009. The Colombian Constitutional Court has recognized that the community’s claims on these lands have merit, so the likelihood of further displacements seems remote.

However, despite the court ruling, and despite the Ministry of the Environment’s assessment that palm oil cultivation would adversely affect these lands, the palm oil company Aportes San Isidro continues to occupy these lands. Some of its personnel, protected by police, are living about ten meters from the community’s homes. Aportes San Isidro is unlikely to cease its operations until the Colombia legal system annuls its title to the land. Only then can the families of Las Pavas receive their registration as the legitimate title-holders.

Las Pavas bases its claim to this land on the land forfeiture by the previous title-holder and Las Pavas’ right of possession. Under Colombia’s land reform laws, a property owner forfeits title to lands that he or she fails to cultivate or otherwise occupy for an extended period. These laws grant rights of ownership to third parties who have occupied and cultivated such lands (or state-owned lands) for period of five years or more. Under these criteria, the community of Las Pavas applied to the Colombian Institute for Rural Development (INCODER) for the right of possession back in 2006. The Constitutional Court’s ruling in favour of the community requires INCODER, which so far has denied the community’s claims to the land, to reopen the case.

INCODER has a conflict of interest. It is simultaneously responsible for both land reform and rural development in Colombia. Aportes San Isidro’s palm oil cultivations complement INCODER’s economic development plans for the area, since they are likely to contribute to economic growth by supplying the global demand for bio-fuel. The Las Pavas community’s development plans, on the other hand, focus not on national economic growth, but rather food security, the environment, and the future well-being of the community. These factors could very well make INCODER sympathetic to Aportes San Isidro’s palm oil production, and therefore reluctant to comply with the Constitutional Court’s ruling that requires the reopening of the Las Pavas community’s claims to these lands.

Even so, here in Colombia the return of the community of Las Pavas to its land is described as a miracle. Very few of the over four million internally displaced Colombians have regained access to their land. Indeed, since the new government of Juan Manuel Santos was inaugurated at the start of August 2010, at least eight leaders of displaced communities directly involved in advocating for return of their families’ or their communities’ land have been assassinated, presumably by paramilitary or criminal gangs that benefited from stolen land.

The combined political and legal efforts of a host of national and international allies-campaigns against Body Shop, Daabon Organics helped raise the community’s profile, ensuring that the community leaders were not killed despite threats against them and allowing the community to return to its land. Furthermore, the Constitutional Court of Colombia, unlike the lower courts, aligned itself with the court of public opinion and ruled in favour of the community.

More miracles are required:

The annulment of Aportes San Isidro’s land title, and its removal from the lands in question must follow the Constitutional Court’s ruling; the Colombian authorities must issue land titles to the community; and the community must receive compensation for all the environmental and property damage done by the Daabon and Aportes San Isidro consortium. Only then can the community members begin the work of rebuilding their lives and a better future for their children.

July 7, 2011 Posted by | Economics, Environmentalism | Leave a comment

Dominicans respond to high energy costs with national strike

Radio del Sur* | July 7, 2011

Dominican popular organizations united in the Alternative Social Forum reaffirmed their support for a national strike scheduled for Monday in protest of the high cost of living.

Dominican Republic Vice President Rafael Alburquerque said the government is always available for dialogue. But unions are not presently looking for dialogue and announced their support for popular demands in addition to salary increases for public employees. The Alternative Social Forum said that the authorities should respond to the demands if they wish to avoid the strike.

Fidel Santana, spokesperson of the Forum, said a government official had called for a meeting, but was told that the Social Forum has no interest in participating in theatrics. Moreover, the official who was not identified, had no decision making power.

In response to the vice president’s call for dialogue Santana stated that in his view, only President Leonel Fernandez and his closest officials can address the demands.

Demands include a wage increase of 30 percent for all public employees, changes to the Hydrocarbons Law and rescinding the increase in electricity tariffs.

Meanwhile business leaders yesterday said that the cessation of work activities would be very damaging to the economy. They recommended convening a dialogue with the authorities to try to reach an agreement regarding the demands.

*Translation by Aletho News

July 7, 2011 Posted by | Economics | Leave a comment

Florida fires 1,300 state workers

Press TV – July 6, 2011

As a result of the newly approved state budget, hundreds of workers in Florida have lost their jobs in a state with one of the highest unemployment rates.

According to MiamiHerald.com, about 1,300 workers in Florida lost their jobs after the state’s governor Rick Scott signed a budget plan aimed at reducing the size of the state government bureaucracy.

The new budget targets the most vulnerable classes, where many of those who became jobless earned less than USD 30,000 a year, after years of state employment.

Florida’s unemployment rate currently stands at 10.6 percent.

The Department of Juvenile Justice and the Department of Children and Families will be hit the hardest as a result of the new budget plan.

The new Republican governor in Florida has already cut state programs and employee benefits.

The US has an official unemployment rate of over 9.0 percent.

On Friday, the Minnesota state government in the US was shut down after lawmakers failed to reach an agreement on a budget plan.

As a result of the budget dispute, some 23,000 of roughly 36,000 state employees have been laid off without a pay for the near future.

July 6, 2011 Posted by | Economics | Leave a comment

PASOK: Pan Hellenic Socialist Kleptocrats

By James Petras | 07.05.2011

“George Papandreou is not bought, he is rented. He sells public enterprises to the multinationals. He reduces wages, pensions and employment at the behest of the IMF. He turns over the public treasury to the European banks. He supports NATO’s war against Libya. He directs the Greek Coast Guard to enforce Netanyahu’s blockade of Gaza.” –  demonstrator in Syndigma Square, Athens, July 3, 2011

Introduction

A self-proclaimed “Socialist” Government in Greece is imposing by ballots and clubs the most far reaching reversals of wages, pensions, jobs, educational, health and tax programs in the history of Western Europe.

The Pan Hellenic Socialist Party (PASOK) has totally abdicated any pretense of being a sovereign government, handing over present and future macro and micro policymaking to the European Central Bankers, the IMF and the power within the European Union/Germany, France. The so-called “austerity” program includes the pillage and auctioning of all the strategic lucrative public enterprises and large scale public land covering all historic and recreation sites. Never has any regime, socialist or not, so blatantly and brutally reverted an independent country to the most unadulterated form of colonial rule.

The Parliamentary Road to Colonial Pillage

Greece’s Great Leap Backward has taken place under the leadership of a “socialist” Prime Minister (George Papandreou) backed by the vast majority (97%) of “socialist” Parliamentarians and the entire “Socialist” Cabinet, with less than 4% defections.

While the parliament debates and votes to debase the country’s sovereignty and degrade the people, hundreds of thousands demonstrate in the streets and plazas. The elected leaders and legislators of PASOK totally ignore the protests, heeding only the directives from the Prime Minister and his appointed party bosses. Parliamentary politics is clearly totally insulated from the people it is supposed to represent.

What kind of government is capable of such a vehement repudiation of the popular will? What kinds of legislators are capable of systematically driving down living standards for the past three years and for the next ten years?

PASOK always was a party of patronage – not a party of programmatic change. PASOK, from its first electoral victory in 1981, offered public sector jobs, credit, loans and favors to its electoral constituency. At the beginning in the early 1980’s, the addition of new public functionaries was ostensibly to implement the socio-economic reforms, which the right-wing public bureaucrats were sabotaging. But as the momentum for ‘reform’ petered out, job appointments continued to multiply, as part of a process of building a large scale electoral party machine.

Thousands of under-employed university graduates with organizational skills crowded the Party offices and over time secured a permanent place in the bloated public bureaucracy. They contributed to securing votes for the PASOK candidates, following the practices of the right wing New Democratic Party. The public sector became the major employment office for several reasons: Most ‘public employees’ held ‘multiple jobs’, some as many as four and five, including self-employment and jobs in the informal economy. Secondly, the so-called private sector in Greece never developed a capacity to grow, invest, innovate, apply technology, compete and create new markets. Most leading Greek businesspeople depended on political links to the Party of Government to secure loans for projects that never materialized, credits that they used to import capital goods from the European Union and loans to import consumer products.

Entry into the European Union (EU) provided PASOK and the Right with huge transfers of capital and loans ostensibly to “modernize” the economy and make it competitive. In exchange Greece lowered its tariff barriers and EU goods flooded the local market. EU funds financed PASOK’s patronage machine; private business borrowed EU funds and passed payment onto the state, with complicit politicians. Professionals and the middle class secured easy credit to buy pricey imports. The regime economists and politicians “cooked the books”, showing positive growth and hiding liabilities. Everything was mortgaged. The European banks collected interest; Western European manufacturers exported consumer goods. According to the experts, Greece was “integrated” into the European Union … unfortunately on the basis of becoming as dissimilar as any country could be from its dominant partners.

PASOK was built around an elite and mass constituency that never paid taxes but extracted and depended on state handouts. Billionaire ship owners avoided taxes as they operated under foreign flags (Panama) but agreed to hire Greek ship captains and contribute to Party coffers. Professionals, lawyers, doctors and architects, barely declared any income, receiving under-the-table cash payments as undeclared income far exceeding any salaries. Business leaders, real estate speculators, bankers and importers all paid off Party leaders in order to secure tax abatement while securing EU loans, which they recycled into tourist properties and overseas accounts. What passed as the Party and business elite were in fact an organized network of kleptocrats: They plundered the treasury and left it to wage and salaried workers to pay the bills, since the latter suffered obligatory payroll tax deductions. Greece is the worse country in the world to be a wage worker – as it’s the only sector that’s taxed and exploited.

Greece is a country of self-employed small business people and independent small farmers, some of whom lease land from urban professionals, small tourist hotel owners and restaurateurs: The overwhelming majority of them pay only a small fraction of their taxes while demanding full public services. They are part of the ‘patronage’ apparatus of PASOK, mostly the recipients of unregulated credit and loans which were used for increasing personal incomes rather than productivity.

EU loans financed the modernization of Greek living standards, increasing the importation of German appliances and automobiles, as well as Danish and French feta cheese (cheap imports substituted for local products). In other words, Europe captured Greek markets increasing its trade deficit while the bureaucracy became the employer of last resort. These EU practices and relations allowed PASOK to retain a solid patronage base of business kleptocrats, small business tax evaders and new layers of state functionaries.

The EU bought Greece’s increasing politico-military subservience: Greece supported the Afghan, Iraq, Libyan and Pakistan wars. Especially under George Papandreou, PASOK’s subservience to Israel and its US Zionist backers exceeded all previous regimes

The Bills Come Due…

Greek public and private kleptocrats falsified the national accounts turning mounting deficits into positive surpluses, till the system imploded. The EU banks presented the bill and demanded payments. The Greek state and capitalist class, under PASOK, immediately proclaimed a program of ‘austerity’ and ‘tax reforms’. In fact, it only would enforce the former, since it did not want to undermine its tax-evader elite and social base.

Massive cutbacks in wages, pensions and jobs were imposed and enforced. PASOK legislators toed the line, since their inflated salaries, pensions, perks and payoffs depended on submission to the Prime Minster, who, in turn, was dependent on the imperial bankers and bourgeois kleptocrats. PASOK’s existence as a Party depends on the flow of EU loans, bailouts and sell-outs to sustain its clients. The PASOK regime is the great example of an authoritarian party: Groveling at the feet of the EU bankers and leaders while ripping at the throat of millions of impoverished Greek pensioners, wage and salary workers. PASOK’s tax-evader and patronage base is barely affected by the fiscal reforms: Tax revenues have actually decreased because of the deepening recession and non-enforcement.

As the PASOK regime deepens and extends the savaging of incomes and as mass resistance multiplies, young unemployed people (55%) have become more desperate and confrontational toward a government, which is ever more repressive and prone to violence.

Totally committed to extracting marrow from the bare bones of workers remuneration, PASOK literally agreed to allow the EU/IMF to oversee, price and sell the entire public patrimony. In other words the debt payment has become the lever for transferring sovereignty to the imperial countries and for maximizing the extraction of wealth from labor. What remains of the “Greek State” are the police and military assigned to forcibly impose the new imperial order on the exploited and impoverished majority.

In the midst of this catastrophic turn of events, of pillage and poverty, the PASOK legislators hold the line: They still count on the mass base of 25% of self-employed professionals, bankers, consultants and tax-evaders to continue to back the regime because they are barely affected by the sell out.

The bailout will allow for the PASOK legislators to collect their lucrative pensions if they are voted out and the self-employed and professionals will continue to cash in on non-taxed tourist rents and revenues from property even as their local clientele is impoverished. PASOK, Papandreou and his coterie have demonstrated that electoral politics is compatible with the most abject surrender of sovereignty, with sustained and savage repression of the majority of the working population and with a deep, long-term reduction of living standards. The Greek experience once again demonstrates that, faced with the demise of the capitalist system, the differences between conservatives, and social democrats vanish. Democratic freedoms exist only as long as the majority submits to the rule of imperialist powers and their local kleptocrat capitalist collaborators.

No doubt new elections will take place, even as living standards plunge, the debt payments increase and the country is stripped of all of its assets. Probably PASOK will be voted out of office. Their conservative adversaries will simply follow their example as police enforcers and debt collectors.

For the vast majority of Greeks there is no future and no solution in the existing system of street protest and parliamentary politics. The latter ignores the former. This impasse raises the question of what kinds of extra parliamentary action are necessary and possible to end the rule by de-facto imperial rulers and kleptocratic collaborators.

July 5, 2011 Posted by | Corruption, Economics | Leave a comment