AIPAC video describes decades-long role in US laws against BDS
If Americans Knew – August 14, 2017
AIPAC, the American Israel Public Affairs Committee, is a powerful Washington DC lobbying organization. In this 2016 video, AIPAC describes how it has successfully worked to create U.S. laws against boycotting Israel over its multitudinous violations of human rights and international law.
The video doesn’t mention the anti-boycott legislation working its way through Congress right now (S.720 / H.R. 1697) that AIPAC helped draft: iak.salsalabs.org/antiboycottbill
Such anti-boycott laws hurt everyone.
They interfere with Americans’ fundamental consumer rights and freedom of speech, often harm American businesses and thereby the U.S. economy, and damage American international relations.
They prevent peace and perpetuate violence in the Middle East. By helping to sustain Israel’s enormous power over Palestinians, they cause Israeli leaders to believe two things: they can ignore international law, and they don’t need to negotiate with Palestinians in good faith to reach a fair and lasting peaceful resolution.
Ultimately, AIPAC’s actions have hurt Palestinians, Israelis, Americans, and the many of others impacted by the Israeli-Palestinian conflict and by Israel’s various wars against its neighbors.
Collateral Damage: U.S. Sanctions Aimed at Russia Strike Western European Allies
By Diana Johnstone | CounterPunch | July 28, 2017
Do they know what they are doing? When the U.S. Congress adopts draconian sanctions aimed mainly at disempowering President Trump and ruling out any move to improve relations with Russia, do they realize that the measures amount to a declaration of economic war against their dear European “friends”?
Whether they know or not, they obviously don’t care. U.S. politicians view the rest of the world as America’s hinterland, to be exploited, abused and ignored with impunity.
The Bill H.R. 3364 “Countering America’s Adversaries Through Sanctions Act” was adopted on July 25 by all but three members of the House of Representatives. An earlier version was adopted by all but two Senators. Final passage at veto-overturning proportions is a certainty.
This congressional temper tantrum flails in all directions. The main casualties are likely to be America’s dear beloved European allies, notably Germany and France. Who also sometimes happen to be competitors, but such crass considerations don’t matter in the sacred halls of the U.S. Congress, totally devoted to upholding universal morality.
Economic “Soft Power” Hits Hard
Under U.S. sanctions, any EU nation doing business with Russia may find itself in deep trouble. In particular, the latest bill targets companies involved in financing Nord Stream 2, a pipeline designed to provide Germany with much needed natural gas from Russia.
By the way, just to help out, American companies will gladly sell their own fracked natural gas to their German friends, at much higher prices.
That is only one way in which the bill would subject European banks and enterprises to crippling restrictions, lawsuits and gigantic fines.
While the U.S. preaches “free competition”, it constantly takes measures to prevent free competition at the international level.
Following the July 2015 deal ensuring that Iran could not develop nuclear weapons, international sanctions were lifted, but the United States retained its own previous ones. Since then, any foreign bank or enterprise contemplating trade with Iran is apt to receive a letter from a New York group calling itself “United Against Nuclear Iran” which warns that “there remain serious legal, political, financial and reputational risks associated with doing business in Iran, particularly in sectors of the Iranian economy such as oil and gas”. The risks cited include billions of dollars of (U.S.) fines, surveillance by “a myriad of regulatory agencies”, personal danger, deficiency of insurance coverage, cyber insecurity, loss of more lucrative business, harm to corporate reputation and a drop in shareholder value.
The United States gets away with this gangster behavior because over the years it has developed a vast, obscure legalistic maze, able to impose its will on the “free world” economy thanks to the omnipresence of the dollar, unrivaled intelligence gathering and just plain intimidation.
European leaders reacted indignantly to the latest sanctions. The German foreign ministry said it was “unacceptable for the United States to use possible sanctions as an instrument to serve the interest of U.S. industry”. The French foreign ministry denounced the “extraterritoriality” of the U.S. legislation as unlawful, and announced that “To protect ourselves against the extraterritorial effects of US legislation, we will have to work on adjusting our French and European laws”.
In fact, bitter resentment of arrogant U.S. imposition of its own laws on others has been growing in France, and was the object of a serious parliamentary report delivered to the French National Assembly foreign affairs and finance committees last October 5, on the subject of “the extraterritoriality of American legislation”.
Extraterritoriality
The chairman of the commission of enquiry, long-time Paris representative Pierre Lellouche, summed up the situation as follows:
“The facts are very simple. We are confronted with an extremely dense wall of American legislation whose precise intention is to use the law to serve the purposes of the economic and political imperium with the idea of gaining economic and strategic advantages. As always in the United States, that imperium, that normative bulldozer operates in the name of the best intentions in the world since the United States considers itself a ‘benevolent power’, that is a country that can only do good.”
Always in the name of “the fight against corruption” or “the fight against terrorism”, the United States righteously pursues anything legally called a “U.S. person”, which under strange American law can refer to any entity doing business in the land of the free, whether by having an American subsidiary, or being listed on the New York stock exchange, or using a U.S.-based server, or even by simply trading in dollars, which is something that no large international enterprise can avoid.
In 2014, France’s leading bank, BNP-Paribas, agreed to pay a whopping fine of nearly nine billion dollars, basically for having used dollar transfers in deals with countries under U.S. sanctions. The transactions were perfectly legal under French law. But because they dealt in dollars, payments transited by way of the United States, where diligent computer experts could find the needle in the haystack. European banks are faced with the choice between prosecution, which entails all sorts of restrictions and punishments before a verdict is reached, or else, counseled by expensive U.S. corporate lawyers, and entering into the obscure “plea bargain” culture of the U.S. judicial system, unfamiliar to Europeans. Just like the poor wretch accused of robbing a convenience store, the lawyers urge the huge European enterprises to plead guilty in order to escape much worse consequences.
Alstom, a major multinational corporation whose railroad section produces France’s high speed trains, is a jewel of French industry. In 2014, under pressure from U.S. accusations of corruption (probably bribes to officials in a few developing countries), Alstom sold off its electricity branch to General Electric.
The underlying accusation is that such alleged “corruption” by foreign firms causes U.S. firms to lose markets. That is possible, but there is no practical reciprocity here. A whole range of U.S. intelligence agencies, able to spy on everyone’s private communications, are engaged in commercial espionage around the world. As an example, the Office of Foreign Assets Control, devoted to this task, operates with 200 employees on an annual budget of over $30 million. The comparable office in Paris employs five people.
This was the situation as of last October. The latest round of sanctions can only expose European banks and enterprises to even more severe consequences, especially concerning investments in the vital Nord Stream natural gas pipeline.
This bill is just the latest in a series of U.S. legislative measures tending to break down national legal sovereignty and create a globalized jurisdiction in which anyone can sue anyone else for anything, with ultimate investigative capacity and enforcement power held by the United States.
Wrecking the European Economy
Over a dozen European Banks (British, German, French, Dutch, Swiss) have run afoul of U.S. judicial moralizing, compared to only one U.S. bank: JP Morgan Chase.
The U.S. targets the European core countries, while its overwhelming influence in the northern rim – Poland, the Baltic States and Sweden – prevents the European Union from taking any measures (necessarily unanimous) contrary to U.S. interests.
By far the biggest catch in Uncle Sam’s financial fishing expedition is Deutsche Bank. As Pierre Lellouche warned during the final hearing of the extraterritorial hearings last October, U.S. pursuits against Deutsche Bank risk bringing down the whole European banking system. Although it had already paid hundreds of millions of dollars to the State of New York, Deutsche Bank was faced with a “fine of 14 billion dollars whereas it is worth only five and a half. … In other words, if this is carried out, we risk a domino effect, a major financial crisis in Europe.”
In short, U.S. sanctions amount to a sword of Damocles threatening the economies of the country’s main trading partners. This could be a Pyrrhic victory, or more simply, the blow that kills the goose that lays the golden eggs. But hurrah, America would be the winner in a field of ruins.
Former justice minister Elisabeth Guigou called the situation shocking, and noted that France had told the U.S. Embassy that the situation is “insupportable” and insisted that “we must be firm”.
Jacques Myard said that “American law is being used to gain markets and eliminate competitors. We should not be naïve and wake up to what is happening.”
This enquiry marked a step ahead in French awareness and resistance to a new form of “taxation without representation” exercised by the United States against its European satellites. The committee members all agreed that something must be done.
That was last October. In June, France held parliamentary elections. The commission chairman, Pierre Lellouche (Republican), the rapporteur Karine Berger (Socialist), Elisabeth Guigou (a leading Socialist) and Jacques Myard (Republican) all lost their seats to inexperienced newcomers recruited into President Emmanuel Macron’s République en marche party. The newcomers are having a hard time finding their way in parliamentary life and have no political memory, for instance of the Rapport on Extraterritoriality.
As for Macron, as minister of economics, in 2014 he went against earlier government rulings by approving the GE purchase of Alstom. He does not appear eager to do anything to anger the United States.
However, there are some things that are so blatantly unfair that they cannot go on forever.
Diana Johnstone is the author of Fools’ Crusade: Yugoslavia, NATO, and Western Delusions. Her new book is Queen of Chaos: the Misadventures of Hillary Clinton. She can be reached at diana.johnstone@wanadoo.fr
The Atlantic Council: Experts on the front line of disinformation
By Bryan MacDonald | RT | July 26, 2017
NATO’s academic wing has been warning about disinformation for years. And it’s no wonder when its staff and contributors are so well-versed in the practice themselves.
The Atlantic Council is an organization dedicated to discussion between people who hate Russia and folk who really, really hate Russia. Thus, amid the current hysteria, it’s Christmas every day for its assorted staff and “fellows” or, to use a more accurate term, ‘lobbyists.’
For the uninitiated, it’s difficult to explain what exactly the Atlantic Council does. Essentially, the club exists to influence the information space to justify NATO’s continued existence. It does that by either employing Russia’s opponents directly or offering retainers to journalists and media analysts who can be relied upon to push the outfit’s anti-Russian stance. Which, of course, is its lifeblood.
While the Atlantic Council is set-up to promote antagonism toward Russia, it also needs it. Because if Russia combusted tomorrow, everyone on the payroll would be out of a job. So, it’s like the famous U2 song “I can’t live, with or without you.” But unlike the protagonist of that ditty, these guys don’t give themselves away. Instead, this NATO adjunct is lavishly funded, by a roll call of famous entities.
Such as the Foreign & Commonwealth Office of the United Kingdom, Abu Dhabi’s National Oil Company, the Ukrainian World Congress, the Lockheed Martin Corporation, the Raytheon Company, the US State Department and the Victor Pinchuk Foundation, which is the plaything of a Ukrainian oligarch.
Some of the more prominent beneficiaries of the resultant money tree include Bellingcat’s Eliot Higgins, CNN’s Michael Weiss, Crowdstrike’s Dmitri Alperovitch, Obama advisor Evelyn Farkas and Maxim Eristavi of Ukraine’s Maidan. All of whom are conveniently united by their hostility to all things Russian.
Like Rolling Stones
The Atlantic Council’s content ranges from very anti-Russian to extremely anti-Russian. For instance, it carries articles by the likes of Alexander Motyl, who predicted Russia’s imminent collapse in January of 2016, before warning in January of 2017 that Moscow was planning a major land invasion of Ukraine. Which is Russophrenia at its finest, in fairness. Nevertheless, Motyl is a shrinking violet compared to Atlantic Council lobbyist Anders Aslund, who foresaw Russia’s demise way back in September 1999. And now, almost eighteen years later, he’s still hanging around for the big moment. In the manner of a Seventh Day Adventist awaiting the second coming of Jesus, any day now.
So, now that we’ve established the Atlantic Council’s modus operandi let’s look at the latest example of the group’s myopia. This week, they’ve unleashed one Polina Kovaleva to opine on “why Congress should pass the Russian sanctions bill.” And she’s delivered a tirade which is shoddy, even when measured by the usual indigent standards.
Kovaleva gives her readers examples of why the embargo is justified, in her opinion, but then delivers a line so deceptive that it makes you wonder whether she’s in touch with reality. “Although the Senate easily passed a strong sanctions bill in June to punish Russia for its aggression in Ukraine and annexation of Crimea, the White House has quietly lobbied to weaken it, and some European politicians are pushing back,” she writes.
Eurocrat Anger
That’s’ right, “some European politicians are pushing back.” Some! What she actually means is “basically every significant elected representative in the European Union.” Including, the “leader of the free world” herself Angela Merkel and that well-known renegade Jean-Claude Juncker.
Here’s what Reuters reported on Wednesday morning: “European Commission President Jean-Claude Juncker said on Wednesday the European Union was ready to act “within a matter of days” if proposed new US sanctions on Russia undermined the bloc’s energy security. And that came three days after the Financial Times reported how Brussels was considering imposing penalties on the US if it damaged European interests to settle scores with Moscow.
Meanwhile, for her part, Merkel has backed Germany’s Foreign Minister, Sigmar Gabriel, in expressing concerns that Washington is threatening “illegal extraterritorial sanctions against European companies that participate in the development of European energy supply.”
Because everybody in Europe knows this US Congress bill has little or nothing to do with punishing Russia. Instead, it’s about trying to nudge Moscow’s energy companies out of Europe, to create market share for their competitors. In other words, a form of economic war, in which the EU countries’ interests don’t amount to a hill of beans.
Something explained recently by Wolfgang Ischinger, a prominent German pundit and former diplomat. He contended: “how would the US have reacted if Europeans had adopted a bill against Keystone XL pipeline but in favor of European business?” before pointing out “for Europe, the loss of such large oil or gas supplies from Russia is unacceptable: there are no alternatives.”
Without question, this is a high-profile resistance campaign. And these sanctions could severely rupture transatlantic ties. Because you don’t get more powerful than Merkel and Juncker in Europe. But the Atlantic Council makes it sound as if a few fringe politicians are off on a solo-run, rejecting Washington’s supreme wisdom.
That is certainly not the case and amounts to misleading agitprop of the highest order. Which is rather apt for a lobbying firm which recently held a “Disinfo week” and proudly claims to be “On the front lines of disinformation.” Because, on this evidence, the Atlantic Council is home to seriously proficient gurus of hogwash.
Bryan MacDonald is an Irish journalist, who is based in Russia.
QE, the largest transfer of wealth in history
By Dan Glazebrook | RT | July 22, 2017
It appears that the massive, almost decade-long transfer of wealth to the rich known as ‘quantitative easing’ is coming to an end.
Of the world’s four major central banks – the US Federal Reserve, the Bank of England, the European Central Bank and the Bank of Japan – two have already ended their policy of buying up financial assets (the Fed and the BoE), and the ECB plans to stop doing so in December. Indeed, the Fed is expected to start selling off the $3.5 trillion of assets it purchased during three rounds of QE within the next two months.
Given that – judged by its official aims – QE has been a total failure, this makes perfect sense. By ‘injecting’ money into the economy, QE was supposed to get banks lending again, boosting investment and driving up economic growth. But overall bank lending in fact fell following the introduction of QE in the UK, whilst lending to small and medium sized enterprises (SMEs) – responsible for 60 percent of employment – plummeted.
As Laith Khalaf, a senior analyst at Hargreaves Lansdown, has noted: “Central banks have flooded the global economy with cheap money since the financial crisis, yet global growth is still in the doldrums, particularly in Europe and Japan, which have both seen colossal stimulus packages thrown at the problem.”
Even Forbes admits that QE has “largely failed in reviving economic growth”.
This is, or should be, unsurprising. QE was always bound to fail in terms of its stated aims, because the reason banks were not funneling money into productive investment was not because they were short of cash – on the contrary, by 2013, well before the final rounds of QE, UK corporations were sitting on almost £1/2trillion of cash reserves – but rather because the global economy was (and is) in a deep overproduction crisis. Put simply, markets were (and are) glutted and there is no point investing in glutted markets.
This meant that the new money created by QE and ‘injected’ into financial institutions – such as pension funds and insurance companies – was not invested into productive industry, but rather went into stock markets and real estate, driving up prices of shares and houses, but generating nothing in terms of real wealth or employment.
Holders of assets such as stocks and houses, therefore, have done very well out of QE, which has increased the wealth of the richest 5 percent of the UK population by an average of £128,000 per head.
How can this be? Where does this additional wealth come from? After all, while money – contrary to Tory sloganeering – can indeed be created ‘out of thin air’, which is precisely what QE has done, real wealth cannot. And QE has not produced any real wealth. Yet the richest 5 percent now have an extra £128,000 to spend on yachts, mansions, diamonds, caviar and so on. So where has it come from?
The answer is simple. The wealth which QE has passed to asset-holders has come, first of all, directly out of workers’ wages. QE, by effectively devaluing the currency, has reduced the buying power of money, leading to an effective decrease in real wages, which, in the UK, still remain 6 percent below their pre-QE levels. The money taken out of workers’ wages therefore forms part of that £128,000 dividend. But it has also come from new entrants to the markets inflated by QE – primarily, first time buyers and those just reaching pension age.
Those buying a house (which QE has made more expensive), for example, will likely have to work thousands of additional hours over the course of their mortgage in order to pay this increased cost. It is those extra hours that are creating the wealth which subsidizes the spending spree for the richest 5 percent. Of course, these increased house prices are paid by anyone purchasing a house, not only first time buyers – but the additional cost for existing homeowners is compensated for by the rise in price of their existing house (or by their shares for those wealthy enough to hold them).
QE also means that newly retiring pensioners are forced to subsidize the 5 percent. New retirees use their pension pot to purchase an ‘annuity’ – a bundle of stocks and shares generating dividends which serve as an income. However, as QE has inflated share prices, the number of shares they can buy with this pot is reduced. And, as share price increases do not increase dividends, this means reduced pension payments.
In truth, the story that QE was about encouraging investment and boosting employment and growth was always a fantastical yarn designed to disguise what was really going on – a massive transfer of wealth to the rich.
As economist Dhaval Joshi put it in 2011: “The shocking thing is, two years into an ostensible recovery, [UK] workers are actually earning less than at the depth of the recession. Real wages and salaries have fallen by £4bn. Profits are up by £11bn. The spoils of the recovery have been shared in the most unequal of ways.”
In March this year, the Financial Times noted that while Britain’s GDP had recovered to pre-crisis levels by 2014, real wages were still 10 percent lower than they had been in 2008. “The contraction of UK real wages was reversed in 2015,” they added, “but it is not going to last”. They were right. The same month the article was published, real wages began to fall again, and have been doing so ever since.
It is the same story in Japan, where, notes Forbes, “household income actually contracted since the implementation of QE”.
QE has had a similar effect on the global South: enriching the holders of assets at the expense of the ‘asset-poor’. Just as the influx of new money created bubbles in the housing and stock markets, it also created commodity price bubbles as speculators rushed to buy up stocks of, for example, oil and food. For some oil producing countries this has had a positive effect, providing them a windfall of cash to spend on social programs, as was initially the case in, for example, Venezuela, Libya and Iran. In all three cases, the empire has had to resort to various levels of militarism to counter these unintended consequences. But oil price hikes are, of course, detrimental to non-oil-producing countries – and food price hikes are always devastating.
In 2011, the UK’s Daily Telegraph highlighted “the correlation between the prices of food and the Fed’s purchase of US Treasuries (i.e. its quantitative easing programs)… We see how the food price index broadly stabilized through late 2009 and early 2010, then rose again from mid-2010 as quantitative easing was re-started … with prices rising about 40 percent over an eight month period.”
These price hikes pushed 44 million people into poverty in 2010 alone – leading, argued the Telegraph, to the unrest behind the so-called Arab Spring. Former World Bank president Robert Zoellick commented at the time that: “Food price inflation is the biggest threat today to the world’s poor… one weather event and you start to push people over the edge.”
Such are the costs of quantitative easing.
The BRICS economies were also critical of QE for another reason: they saw it as an underhand method of competitive currency devaluation. By reducing the value of their own currencies, the ‘imperial triad’ of the US, Europe and Japan were effectively causing everyone else’s currencies to appreciate, thereby damaging their exports. Forbes wrote in 2015, “The effects are already being felt in the most dynamic exporter in the world, the East Asian economies. Their exports in US dollar terms moved dramatically from 10 percent year-on-year growth to a contraction of 12 percent in the first half of this year; and the results are the same whether China is excluded or not.”
The main benefit of QE to the developing world is supposed to have been the huge inflows of capital it triggered. It has been estimated that around 40 percent of the money generated by the Fed’s first QE credit expansion (‘QE1’) went abroad – mostly to the so-called ‘emerging markets’ of the global South – and around one third from QE2. However, this is not necessarily the great boon it seems. Much of the money went, as we have seen, into buying up commodity stocks (making basic items such as food unaffordable for the poor) rather than investing in new production, and much also went into buying up stocks of currency, again causing an export-damaging appreciation. Worse than this, an influx of so-called ‘hot money’ (footloose speculative capital, as opposed to long term investment capital) makes currencies particularly volatile and vulnerable to, for example, rises in interest rates abroad.
Should interest rates rise again in the US and Europe, for example, this is likely to trigger a mass exodus of capital from the emerging markets, potentially prefiguring a currency collapse. Indeed, it was an influx of ‘hot money’ into Asian currency markets very similar to that seen during QE which preceded the Asian currency crisis of 1997.
It is precisely this vulnerability which is likely to be tested – if not outright exploited – by the coming end of QE and accompanying rise of interest rates.
Dan Glazebrook is a freelance political writer who has written for RT, Counterpunch, Z magazine, the Morning Star, the Guardian, the New Statesman, the Independent and Middle East Eye, amongst others. His first book “Divide and Ruin: The West’s Imperial Strategy in an Age of Crisis” was published by Liberation Media in October 2013. It featured a collection of articles written from 2009 onwards examining the links between economic collapse, the rise of the BRICS, war on Libya and Syria and ‘austerity’. He is currently researching a book on US-British use of sectarian death squads against independent states and movements from Northern Ireland and Central America in the 1970s and 80s to the Middle East and Africa today.
US corporations lobby against anti-Russia sanctions
RT | July 21, 2017
A wide range of American conglomerates, including oil, energy, banking, aerospace, auto and heavy manufacturing enterprises have jointly started a lobbying campaign against the new round of sanctions against Russia passed by the US Senate, CNN reports.
BP, ExxonMobil, General Electric, Boeing and Citigroup, MasterCard and Visa are reportedly among the companies raising concerns the punitive measures will ultimately harm their businesses, rather than the Kremlin.
Ford, Dow Chemical, Procter & Gamble, International Paper, Caterpillar, and Cummins have reportedly warned the measure could impact their businesses as well.
The new bill, aimed at punishing Russia for alleged meddling in the US presidential election, was approved last month. The measures target already sanctioned Russian banks and energy sector, limiting the financing period for them to 14 and 30 days respectively.
The legislation also introduces individual sanctions for investing more than $5 million a year or $1 million at a time in Russian pipeline projects or providing such enterprises with services, technology or information support.
Over a dozen of US corporations want changes to the bill and lobbyists and trade associations have been visiting Capitol Hill in recent days meeting members of Congress.
“It passed with such force and such a strong vote in the Senate, it seemed to be insurmountable initially. I don’t think they thought through the unintended consequences,” said a senior congressional aide who has worked on the billб as quoted by the media outlet.
The bill, which is still to be approved by both the House of Representatives and the Trump administration has drawn a wave of criticism among European corporations as well.
Earlier this week, the heads of European energy companies warned the sanctions Washington wants to impose on the Nord Stream-2 gas pipeline might have an adverse impact on Europe.
Last month, German Foreign Minister Sigmar Gabriel and Austrian Chancellor Christian Kern said the new measures introduced by the US were only about “selling American liquefied natural gas and ending the supply of Russian natural gas to the European market.”
Which European Nation Suffers From The Most Drug-Induced Deaths?
By Tyler Durden | Zero Hedge | July 19, 2017
As highlighted by the latest edition of the European Drug Report, Estonia is the country with the most drug-induced deaths per million population in Europe.
You will find more statistics at Statista
At 103 – 82 above the EU average – only Sweden comes close with 100 deaths. However, at the other end of the scale, as Martin Armstrong at Statista points out, Portugal, where drugs were decriminalised back in 2001, had only 6 per million people.
Looking outside of Europe, Estonia’s problems are pulled into sharp relief by the rate in the United States. In 2016, there were a staggering 185 deaths per million.
For Google, the Pixels Just Hit the Fan
Sputnik – July 12, 2017
Distinguished research psychologist Robert Epstein explains why Google was recently fined $2.7 billion for one of its search-engine manipulations. This is just the beginning, he says, of bad news for a company that tracks and manipulates people on a massive scale.
Dr. Robert Epstein — The pixels have hit the fan. The EU just fined Google $2.7 billion for favoring its online comparative shopping service in its search results.
Google officials knew this fine was coming and that much worse is possible, so in August 2015, they reorganized the company so that it is now part of a holding company called Alphabet. This was not done, as Larry Page, one of the company’s co-founders, rapped at the time, to make the company “cleaner and more accountable” (what on earth does that mean?). It was likely done to try to protect the value of the stock held by the company’s major stockholders. The EU’s antitrust action against Google had been filed in April, 2015, and that got Google officials thinking. When the US Department of Justice broke up AT&T in the 1980s, the stock value dropped by 70 percent.
Google officials are nervous because they know exactly how many questionable practices they engage in every day, along with how many have been uncovered so far and how many are still unknown to authorities. My associates and I have discovered some of these practices, and we study them every day. They are brilliant, mind-blowing, and largely invisible new ways of both tracking and manipulating human behavior on an unprecedented scale, all serving a singular purpose: to make Google richer. Before I give you a few examples of the practices we are examining these days, let me put the big EU fine into a broader context.
First of all, Google can handle it. The company will likely have revenues of over $100 billion this year, so they can pay the fine painlessly, and they also have unlimited legal resources. In court, they will claim, as they always do, that they haven’t done anything wrong, that it’s just the algorithm, and that the algorithm — in its objective purity, driven by its deep digital desire to serve human needs — just happens to rank Google products above inferior ones.
This is complete nonsense. As I explain in detail in my US News essay, “The New Censorship,” Google employees have complete control over where items occur in search results. The search algorithm is just a set of computer instructions written by Google software engineers, and they manually adjust the algorithm daily to remove items from the search results it generates about — 100,000 items per year under Europe’s “right to be forgotten” law alone — or to demote companies that piss Google off.
Second, this hefty fine is just the tip of a very large digital iceberg. Bear in mind that it is based on merely one instance of search bias: putting Google’s own comparative shopping service ahead of others. A US Federal Trade Commission investigation in 2012 found that Google’s search results are generally skewed to favor its own products and services. When was the last time you Googled a movie without seeing YouTube — owned by Google — in the top search result? Both India and Russia have levied fines against the company for rigging search results, with a much larger fine still looming in India. Bear in mind also that the EU’s search-related action against Google is just one of three antitrust cases they have initiated so far; the other two concern Google’s dominance in mobile computing and advertising. Europe’s concerns about Google are so deep that in late 2014 the European Parliament voted (in a non-binding proceeding) to break Google up into pieces, reminiscent of the DOJ’s dismantling of AT&T.
These and other legal actions are all about new techniques Google has developed for tracking and manipulating people. The search engine may have started out as a simple index of web pages, but it was soon refined and repurposed. Its main purpose became to track user behavior, yielding a vast amount of information about people that Google still leverages to send out the targeted advertisements that account for most of the company’s income. The public still thinks of the Google search engine, Google Maps, Google Wallet, YouTube, Chrome, Android and a hundred other Google platforms as cool services the company provides free of charge. In fact, they are all just gussied-up surveillance platforms, and authorities around the world are finally figuring that out.
As the EU’s recent antitrust decision shows, authorities are also beginning to figure out how extensively Google is using its platforms to suppress competition and manipulate user behavior. The EU’s investigation found, for example, that when Google officials realized in 2007 that their comparative shopping service was failing, they elevated their own service in their search results while demoting competing services. This increased traffic to its service “45-fold in the United Kingdom, 35-fold in Germany, 19-fold in France, 29-fold in the Netherlands, 17-fold in Spain and 14-fold in Italy” while reducing traffic to its competitors by “85% in the United Kingdom, up to 92% in Germany and 80% in France.”
Does position in search results really affect user behavior that much? You bet. My own research has shown, for example, that favoring one political candidate in search results can shift the voting preferences of undecided voters by up to 80 percent in some demographic groups. Search results that favor one perspective over another on abortion, fracking, homosexuality, you name it also dramatically shift the opinions of people who haven’t yet made up their minds. The research also shows, unfortunately, that this type of manipulation is virtually invisible to people and, worse still, that the few people who can spot favoritism in search results shift even farther in the direction of the bias, perhaps because they see the bias as a kind of social proof.
What if authorities were examining not just the dominance of Google’s comparison shopping service in the company’s search results but the dominance of, say, anything, in those results: certain brands of mobile phones or computers; political candidates who serve or interfere with the company’s needs; attitudes toward Oracle, Microsoft, Yahoo, and other companies that compete with or are in conflict with Google; news stories that are “fake” or anti-Trump or pro-Google; and on and on. Do you see how big this problem really is? And no one — at least not yet — is tracking any of this. The trillions of pieces of information Google is showing people every day are all ephemeral. They hit your eyeballs and then disappear, leaving no trace, and much or most of them favor one perspective or another. Do we really want a single company, which handles 90 percent of search in most countries, to have the power to manipulate our opinions about anything? How, over the years, has Google been exercising this power?
My newest research is showing that it is not just the order of search results we need to worry about. Here are three examples of manipulations we are currently studying which, once again, no authorities are tracking — at least not yet:
- Search suggestions: Before you even see those search results, Google typically flashes search suggestions at you. When Google introduced this feature in 2004, they showed you a long list of suggestions — usually 10 — that indicated what other people were searching for; Bing and Yahoo still do this. Google, however, now typically shows you just four suggestions that are often unrelated to what others are searching for. Instead, they show you terms they believe you are likely to click, which gives them a great deal of control over your search. One way they now manipulate searches is by strategically including or withholding negative search terms. Negative terms (like “suicide” or “crimes”) attract far more clicks than neutral or positive ones do-10-to-15 times as many in some demographic groups. By withholding negative suggestions for a perspective or person the company supports while allowing negatives to appear for a person or perspective the company dislikes, they drive millions of people to view material that shifts opinions in ways that serve the company’s needs. Four, it turns out, is the magical number of suggestions that maximize their control. It maximizes the power of the negative search term to draw clicks while also minimizing the likelihood that people will type their own search term.
- I’m feeling lucky: When you mouse over a Google search suggestion, you see a small “I’m feeling lucky” link. With this feature, Google gets people to skip seeing search results altogether; it gives the company complete control over the actual web page you see. By limiting the number of suggestions you see and then attracting you to the “lucky” link, they exert a high degree of control over what opinion you will form on issues you’re uncertain about. All of this occurs without users having any awareness of how they are being manipulated.
- The featured snippet: Google is rapidly moving away from the search engine model of tracking and manipulation toward much more powerful means. (To view a satire I wrote about Google donating its search engine to the American public, click here.) The “featured snippet” — the answer box we see more and more frequently above the search results — is one such tool we are studying. Google officials have long known that people don’t really want to see a list of 10,000 search results when they ask a question; they just want the answer. That’s what the snippet is now giving people — the answer, wrong or right, and it’s often wrong. In one of our newest experiments, the voting preferences of undecided voters shifted by 36.2 percent when they saw biased search rankings without an answer box, but when a biased answer box appeared above the search results, the shift was an astounding 56.5 percent. In other words, when you give people the answer, you have an even larger impact on their opinions, purchases, and voting preferences. Google is rapidly shifting to this new model of influence not just on its search engine, but with its new audio Home device (“Okay Google, what’s the best Italian restaurant around here?”), as well as with its new Android-based Google Assistant.
It took years for the EU to collect and analyze the terabytes of data it needed to make a case against Google in the shopping services action. Meanwhile, Google is moving light years ahead. This might always be a problem when it comes to the machinations of high-tech companies. Laws and regulations will necessarily lag way behind, unless-unless, that is, we change the game.
As The Washington Post and other media outlets reported in March 2017, about six months before the November 2016 election in the US, my associates and I deployed a Nielsen-type system for tracking search results in real time. Using custom software and a nationwide network of anonymous field agents, we were able to look over the shoulders of people as they conducted a wide range of election-related searches using Google, Bing, and Yahoo, ultimately preserving the first page of results from 13,207 searches and the 98,044 web pages to which the search results linked. We found that these searches, especially the ones conducted on Google, generally favored Hillary Clinton over Donald Trump in all ten search positions on the first page of search results. Perhaps more important, we learned that our monitoring system could be used to track any of the ephemeral stimuli that Google and other tech companies are showing us every day: news feeds, advertisements, you name it.
I am now working will colleagues from Stanford, Princeton, King’s College London and a dozen other institutions to create an organization that will monitor the online behavior of Big Tech companies worldwide on a real-time basis. If we do this right, it will take only seconds, not years, to spot illegal or unethical behavior, and we might even be able to anticipate manipulations before they occur, providing evidence on an ongoing basis to journalists, regulators, legislators, law enforcement officials, and antitrust investigators. Such a system will force Big Tech companies, both now and in the future, to be more accountable to the public, and it will also help preserve the free and fair election.
In the meantime, my advice to consumers is: be wary of the information you obtain online and, more important, be cautious about the information you reveal. Learn how to increase your online privacy; it’s not that hard.
And my advice to Google officials is: cut down on the greed and arrogance. The wheels of justice turn slowly, but they do turn.
_______________________
A Ph.D. of Harvard University, Robert Epstein is senior research psychologist at the American Institute for Behavioral Research and Technology, the author of 15 books, and the former editor-in-chief of Psychology Today magazine. Follow him on Twitter @DrREpstein.
Why The European Community (“the EU”) Must Collapse
By Robin Mathews | American Herald Tribune | July 8, 2017
The simple reason for the coming collapse of what we call the European Union is the essentially unjust, unequal, undemocratic, and punitive nature of its basic legal structure. The EU Commission and other arms of the (unelected) bureaucracy work happily in that structure, increasing anti-democratic tensions. Their connection with the Imperial Globalizers is almost flagrant. But the source of trouble lies in The European Court of Justice, the Community’s (apparently) highest authority.
The explanation of the truth is revealed by Dieter Grimm, a former member of the German Federal Constitutional Court. In his role there he had (between 1987 and 1999) to meet EU incursions into the German Constitution and its defenses of democratic freedoms. On March 29, 2017, he explained the situation at the invitation of the College de France. (“Quand le juge dissout l’electeur” – Le Monde diplomatique, July, 2017, p. 19). (Narrowly translated, that means “When the judge erases the voter”.)
Very much of German response and (guarded) acceptance of EU “treaty-making” is marked by what is called the “as long as” clause in German ratifications. That clause states that “as long as” all fundamental rights are not guaranteed by the European Community, all new treaties must submit to strict respect for the sovereignty of the German people as written in their fundamental law. That most powerful nation in the European Union declares, in fact, that the European Community is structured as a threat to fundamental human rights and freedoms. Not much more needs to be said.
The present situation explains the (apparent) flailing of new political formations in Europe (and Britain), trying for a grasp on power. Since the tendency of EU national governments has been acceptance of undemocratic power in the Community, and since the mainstream media and “respected” commentators support the undemocratic basis of the Community, the first resistances have been eruptive, uncertain, belligerent. UKIP in England, Marine Le Pen’s National Party in France, The Five Star Movement in Italy and other like formations have not been welcomed in “acceptable” circles.
They are deemed, condescendingly, to be “populist movements”. The word takes its meaning from a nineteenth century, U.S. Party wishing to broaden democracy, to nationalize some infrastructure (i.e. Railways), to limit private ownership of land, and to use a graduated tax system. The term ‘populist’ was also used of a movement in Russia (very early) seeking increased collectivism. Clearly the smell of democracy hangs about the word “populist”. And so the persistent use of the word as a pejorative says much. With all their faults, the “populist” parties in Europe began the demand for action to work against what might fairly be called “creeping fascism” in that Community.
The whole fake target – immigration and immigrants – might be seen, among the new political forces, to be a simple matter of their racism and inhumanity. Except for one thing – the wealthy, the coddled corporations, and international capital want a borderless Europe in order to move low-wage earners from poorest countries across the Community to help force down living standards … and raise profits. That fact becomes obscured by the unique problem caused with the flood of immigrants pressing for acceptance in Europe as a result of the ravages left by Western countries seeking “regime change” in the Middle East.
“Good” political activities, according to the Mainstream Press and its owners are ones like that of Matteo Renzi in Italy (Centre Left) which recently tried to reduce democratic responsibility of the elected by referendum – and was rejected. Or like Emmanuel Macron’s new French “En Marche” Party, a neo-liberal force that also wants to bridle democracy, in France. Macron, like Renzi in Italy, has announced he is willing to go to referendum in his attack on democracy – if he can’t get what he wants through France’s National Assembly. (Both, of course, put forward the claim to want to streamline democracy and speed it up.) The surge of support for Macron in France was almost a desperation measure after the “Socialist” government of Francois Hollande sold out completely to the European Commission and international capital. Macron’s solution is no solution … as time will tell.
In England, Labour Leader Jeremy Corbin points to the biggest symptom of “creeping fascism” in Britain, calling it the folly of “The Austerity State”… the situation in which the general population is increasingly undefended and subjected to ‘precarious’ living, while the wealthy are coddled, corporations are given free rein, and international capital is the de facto legislator. In confronting The Austerity State and vowing to change it, Jeremy Corbin (specifically) and the British Labour Party he leads are climbing in popularity, as the European population – misled by the European Commission, its bureaucratic back-up, and their ‘owned’ media – is finally coming to a slow understanding about where real power resides in European “government”.
Plainly, most economic and trade initiatives in Europe spring (primarily) from profit-seeking corporations, banking institutions, and others in the investment community – not from forces desiring the well-being of all Europeans. And so conflict is assured until national governments in the Community are formed by forces truly representing the larger population … which address the fundamental weakness expressed in basically flawed inter-Community treaty-making.
Briefly – history tells all:
From the time of the Marshall Plan (at the end of the Second World War) the U.S. set about to re-create Europe as a gigantic marketplace. The creation of NATO (1949) furthered a U.S./European integrated military led by the U.S.A. NATO and U.S. corporate interests worked to encourage the establishment of a European Union. The cry to the public was that an integrated Europe would end the costly and destructive history of war-making there, a noble aspiration that caught the popular imagination.
But integral to the communitarian cry was the unending ambition of the global imperialists, of “dark” government, of ‘the deep State’ – whatever name is chosen for the (in fact) fascist One Per Cent – the ambition to be, in fact, the real government of Europe and to exploit its wealth and population.
Dieter Grimm puts the matter simply. What he calls “the democratic deficit” of the Union is no longer in doubt and is based upon the transformation of Europe by treaties. The European Court of Justice regards inter-community treaties as the foundation of a European Constitution. It apparently (from what base and/or source of influence?) sees its role as the maker of a European Constitution … through treaty-making – without first demanding that all treaties are based in the protection of fundamental Rights and Freedoms.
Apparently an unique situation in Europe, the condition Dieter Grimm describes is, of course, not unique. Across the world, forces of Imperial Globalization (call it what you will) have been shaping so-called Free Trade treaties (with the apparent close co-operation of “democratic” governments in power) which shift sovereign power away from the elected representatives of the people and their carefully constructed court systems to various forms of faceless, “irresponsible”, privately-appointed decision-making bodies. Those bodies oversee the gigantic raid made by private corporations upon populations helpless to prevent the massive grabbing which results from claims that the country in question is interfering with the right of the private corporations to exploit wealth and people.
Stripping a people of its fundamental human rights and freedoms clears the way for a world of corporate decision making in which all criteria of effectiveness and efficiency are the criteria of the capitalist entrepreneur. In Europe, cooperation between the Globalizers and supine governments is eating at the fundamental protections of working people, structures to insure universal health care and security in old age … and is proposing to “release” people entering the labour market from any defensive organizations so they will be free (as they were in the slave days of the Industrial Revolution) to – singly and freely as independent entities – negotiate with corporations the terms of their employment.
We remember … if the Court doesn’t … that in 2005 the unelected ruling forces in Europe produced a three-volume proposed Constitution for Europe, one which legitimized the neo-liberal structure growing in place. France and Holland rejected it by referendum and, effectively, killed it. Undaunted, the bureaucrats largely resurrected its intentions in the 2007 Treaty of Lisbon. The Treaty did not need referendum approval and was signed into being by all member States, including the governments of France and Holland – flying in the face of what was clearly a democratic expression of the popular will. In 2009 the Treaty of Lisbon came into force. Dieter Grimm argues that the European Court of Justice is “constitutionalizing” treaties … arguing for and accepting them as ‘basic law’, superior to all national law and national Constitutions. Germany, for one, disagrees.
In short, at least since 1964 (the Treaty of Lisbon being merely another nail in the coffin of European Union democracy) the European Court of Justice has ruled that all treaties (and, indeed, all Court of Justice rulings) take precedence over national laws and Constitutions. But since that process is constructing, in Jeremy Corbin’s words, an “Austerity State” which is plainly unjust, unequal, undemocratic, and punitive to the larger European population, it cannot survive.
Failing an internal reconstruction of the Community – which seems (at present) almost impossible, European Union national populations – sooner or later – will elect governments that set in motion the clause in the European rule-book that begins exit from the Union. Then Britain’s much berated Brexit, voted to begin Britain’s withdrawal from the European Community, will become the rule, rather than – as it is now – the highly criticized exception.
Robin Mathews is Professor emeritus at Simon Fraser University in Vancouver.
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Alarmist climate science as a textbook example of groupthink
By Paul MacRae | May 1, 2012
… Groupthink was extensively studied by Yale psychologist Irving L. Janis and described in his 1982 book Groupthink: Psychological Studies of Policy Decisions and Fiascoes.
Janis was curious about how teams of highly intelligent and motivated people—the “best and the brightest” as David Halberstam called them in his 1972 book of the same name—could have come up with political policy disasters like the Vietnam War, Watergate, Pearl Harbor and the Bay of Pigs. Similarly, in 2008 and 2009, we saw the best and brightest in the world’s financial sphere crash thanks to some incredibly stupid decisions, such as allowing sub-prime mortgages to people on the verge of bankruptcy.
In other words, Janis studied why and how groups of highly intelligent professional bureaucrats and, yes, even scientists, screw up, sometimes disastrously and almost always unnecessarily. The reason, Janis believed, was “groupthink.” He quotes Nietzsche’s observation that “madness is the exception in individuals but the rule in groups,” and notes that groupthink occurs when “subtle constraints … prevent a [group] member from fully exercising his critical powers and from openly expressing doubts when most others in the group appear to have reached a consensus.”[2]
Janis found that even if the group leader expresses an openness to new ideas, group members value consensus more than critical thinking; groups are thus led astray by excessive “concurrence-seeking behavior.”[3] Therefore, Janis wrote, groupthink is “a model of thinking that people engage in when they are deeply involved in a cohesive in-group, when the members’ strivings for unanimity override their motivation to realistically appraise alternative courses of action.”[4]
The groupthink syndrome
The result is what Janis calls “the groupthink syndrome.” This consists of three main categories of symptoms:
1. Overestimate of the group’s power and morality, including “an unquestioned belief in the group’s inherent morality, inclining the members to ignore the ethical or moral consequences of their actions.” [emphasis added]
2. Closed-mindedness, including a refusal to consider alternative explanations and stereotyped negative views of those who aren’t part of the group’s consensus. The group takes on a “win-lose fighting stance” toward alternative views.[5]
3. Pressure toward uniformity, including “a shared illusion of unanimity concerning judgments conforming to the majority view”; “direct pressure on any member who expresses strong arguments against any of the group’s stereotypes”; and “the emergence of self-appointed mind-guards … who protect the group from adverse information that might shatter their shared complacency about the effectiveness and morality of their decisions.”[6]
It’s obvious that alarmist climate science—as explicitly and extensively revealed in the Climatic Research Unit’s “Climategate” emails—shares all of these defects of groupthink, including a huge emphasis on maintaining consensus, a sense that because they are saving the world, alarmist climate scientists are beyond the normal moral constraints of scientific honesty (“overestimation of the group’s power and morality”), and vilification of those (“deniers”) who don’t share the consensus. … Read full article
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