Can Trump Find the ‘Great’ Path?
By Robert Parry | Consortium News | July 30, 2017
On June 29, when CNN’s Wolf Blitzer asked John Podesta, the chairman of Hillary Clinton’s failed presidential campaign, how they had lost to Donald Trump, I expected the usual excuse – “Russia! Russia! Russia!” – but was surprised when Podesta spoke truthfully:
“Even though 20 percent of his voters believed he was unfit to be president, they wanted radical change, they wanted to blow the system up. And that’s what he’s given them, I guess.”
For those millions of Americans who had watched their jobs vanish and their communities decay, it was a bit like prisoners being loaded onto a truck for transport to a killing field. As dangerous and deadly as a desperate uprising might be, what did they have to lose?
In 2008, some of those same Americans had voted for an unlikely candidate, first-term Sen. Barack Obama, hoping for his promised “change you can believe in,” but then saw Obama sucked into Official Washington’s Establishment with its benign – if not malign – neglect for the average Joe and Jane.
In 2016, the Democratic Party brushed aside the left-wing populist Sen. Bernie Sanders, who might have retained the support of many blue-collar Americans. The party instead delivered the Democratic nomination to the quintessential insider candidate – former First Lady, former Senator and former Secretary of State Hillary Clinton.
Though coming from a modest background, Clinton had grabbed onto the privileges of power with both hands. She haughtily set up a private email server for her official State Department business; she joined with neocons and liberal interventionists in pushing for “regime change” wars fought primarily by young working-class men and women; and after leaving government, she greedily took millions of dollars in speaking fees from Wall Street and other special interests.
Clinton’s contempt for many American commoners spilled out when she labeled half of Trump’s supporters “deplorables,” though she later lowered her percentage estimate.
So, enough blue-collar voters in Michigan, Wisconsin and Pennsylvania rebelled against the prospect of more of the same and took a risk on the disruptive real-estate mogul and reality-TV star Donald Trump, a guy who knew little about government and boasted of his crude sexual practices.
Hobbling Trump
However, after Trump’s shocking victory last November, two new problems emerged. First, Hillary Clinton and the national Democrats – unwilling to recognize their own culpability for Trump’s victory – blamed their fiasco on Russia, touching off a New Cold War hysteria and using that frenzy to hobble, if not destroy, Trump’s presidency.
Second, Trump lacked any coherent governing philosophy or a clear-eyed understanding of global conflicts. On foreign policy, most prospective Republican advisers came from a poisoned well contaminated by neocon groupthinks about war and “regime change.”
Looking for alternatives, Trump turned to some fellow neophytes, such as his son-in-law Jared Kushner and alt-right guru Steve Bannon, as well as to a few Washington outsiders, such as former Defense Intelligence Agency director Michael Flynn and Exxon-Mobil chief executive officer Rex Tillerson. But all had serious limitations.
For instance, Kushner fancied himself the genius who could achieve Israeli-Palestinian peace by applying the so-called “outside/in strategy,” i.e., getting the Saudis and Gulf States to put their boots on the necks of the Palestinians until they agreed to whatever land-grabbing terms Israeli Prime Minister Benjamin Netanyahu dictated.
Flynn, who served briefly as Trump’s National Security Adviser, had led the DIA when it correctly warned President Obama about the jihadist risks posed by supporting the “regime change” project in Syria, even predicting the rise of the Islamic State.
But Flynn, like many on the Right, bought into Official Washington’s false groupthink that Iran was the principal sponsor of terrorism and needed to be bomb-bomb-bombed, not dealt with diplomatically as Obama did in negotiating tight constraints on Iran’s nuclear program. The bomb-bomb-bomb approach fit with the desires of the Israeli and Saudi governments, which viewed Iran as a rival and wanted the American military to do the dirty work in shattering the so-called “Shiite crescent.”
So, because of Kushner’s views on Israel-Palestine and because of the Flynn/Right-Wing hostility toward Iran, Trump fell in line with much of the neocon consensus on the Middle East, demonstrated by Trump’s choice of Saudi Arabia and Israel for his first high-profile foreign trip.
But obeisance to Israel and Saudi Arabia – and inside Washington to the neocons – is what created the catastrophe that has devastated U.S. foreign policy and has wasted trillions of dollars that otherwise could have been invested in the decaying American infrastructure and in making the U.S. economy more competitive.
In other words, if Trump had any hope of “making America great again,” he needed to break with the Israeli/Saudi/neocon/liberal-hawk groupthinks, rather than bow to them. Yet, Trump now finds himself hemmed in by Official Washington’s Russia-gate obsession, including near-unanimous congressional demands for more sanctions against Moscow over the still-unproven charges that Russia interfered with the U.S. election to help Trump and hurt Clinton. (The White House has indicated that Trump will consent to his own handcuffing on Russia.)
A Daunting Task
Even if Trump had the knowledge and experience to understand what it would take to resist the powerful foreign-policy establishment, he would face a hard battle that could only be fought and won with savvy and skill.
A narrow path toward a transformational presidency still remains for Trump, but he would have to travel in some very different directions than he has chosen during his first six months.
For one, Trump would have to go against type and become an unlikely champion for truth by correcting much of the recent historical record about current global hot spots.
On Syria, for instance, Trump could open up the CIA’s books on key events, including the truth about Obama’s “regime change” scheme and the alleged sarin gas attack outside Damascus on Aug. 21, 2013. Though the Obama administration blamed the Assad government, other evidence pointed to a provocation by radical jihadists trying to trick the U.S. military into intervening on their side.
Similarly, on the Ukraine crisis, Trump could order the CIA to reveal the truth about the U.S. role in fomenting the violent coup that ousted elected President Viktor Yanukovych and touched off a bloody civil war, which saw the U.S.-backed regime in Kiev dispatch neo-Nazi militias to kill ethnic Russians in the east.
In other words, facts could be deployed to counter the propaganda theme of a “Russian invasion” of Ukraine, another one of Official Washington’s beloved groupthinks that has become the foundation for a dangerous New Cold War.
As part of the truth-telling, Trump could disclose the CIA’s full knowledge about who shot down Malaysia Airlines Flight 17 over eastern Ukraine on July 17, 2014, an atrocity killing 298 people that was pinned on the Russians although other evidence points to a rogue element of the Ukrainian military. [See here and here.]
Further going against type, Trump also might admit that he rushed to judgment following the April 4, 2017, chemical-weapons incident in Khan Sheikhoun, Syria, by ordering a retaliatory missile strike against the Syrian military on April 6 when the whodunit evidence was unclear.
By sharing knowledge with the American people – rather than keeping them in the dark and feeding them a steady diet of propaganda – Trump could enlist popular support for pragmatic shifts in U.S. foreign policy.
Those changes could include a historic break from the Israeli-Saudi stranglehold on U.S. policy in the Middle East – and could make way for cooperation with Russia and Iran in stabilizing and rebuilding Syria so millions of displaced Syrians could return to their homes and reduce social pressures that the refugees have created in Europe.
A Populist Party
On the domestic front, if Trump really wants to replace Obama’s Affordable Care Act with something better, he could propose the one logical alternative that would both help his blue-collar supporters and make American companies more competitive – a single-payer system that uses higher taxes on the rich and some more broad-based taxes to finance health-care for all.
That way U.S. corporations would no longer be burdened with high costs for health insurance and could raise wages for workers and/or lower prices for American products on the global market. Trump could do something similar regarding universal college education, which would further boost American productivity.
By taking this unorthodox approach, Trump could reorient American politics for a generation, with Republicans emerging as a populist party focused on the needs of the country’s forgotten citizens, on rebuilding the nation’s physical and economic infrastructure, and on genuine U.S. security requirements abroad, not the desires of “allies” with powerful lobbies in Washington.
To follow such a course would, of course, put Trump at odds with much of the Republican Party’s establishment and its longstanding priorities of “tax cuts for the rich” and more militarism abroad.
A populist strategy also would leave the national Democrats with a stark choice, either continue sidling up to Official Washington’s neoconservatives on foreign policy and to Wall Street’s wheelers and dealers on the economy – or return to the party’s roots as the political voice for the common man and woman.
But do I think any of this will happen? Not really. Far more likely, the Trump presidency will remain mired in its “reality-TV” squabbles with the sort of coarse language that would normally be bleeped out of network TV; the Democrats will continue substituting the Russia-gate blame-game for any serious soul-searching; the Republicans will press on with more tax cuts for the rich; and the Great American Experiment with Democracy will continue to flounder into chaos.
Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s.
US-Russia ties going south

By M K Bhadrakumar | Indian Punchline | July 30, 2017
Russia and the United States could be hurtling toward a showdown following Moscow’s decision on Friday to retaliate, finally, against President Barack Obama’s expulsion of 35 Russian diplomats in the US and the impounding of two Russian compounds on December 30 last year.
Consular issues usually signal the real state of play in inter-state relations – and often provide a litmus test. Obama’s intention was most certainly to complicate the Russian-American relationship to a point of no return by the time his successor Donald Trump moved into the White House. Obama expected his Russian counterpart Vladimir Putin to react strongly, which in turn would have triggered a first-rate crisis in the relationship. But Putin saw through Obama’s game.
He opted instead to tackle President Donald Trump on a pleasant note. But then, Russia eventually became such a toxic subject in the Washington circuit that Trump was put on the defensive when it came to restoring the confiscated Russian properties or granting visas to Russian diplomats newly assigned to the US.
Nonetheless, Moscow waited patiently for over six months before concluding that enough is enough. And it has now hit Washington very hard, as the Foreign Ministry statement on Friday suggests. Moscow had the option to expel 35 American diplomats, but instead chose to apply the principle of parity by demanding that the number of personnel posted in the Moscow embassy and in the 3 American consulates (St. Petersburg, Yekaterinburg and Vladivostok) should not exceed 455 (which is the current strength of Russian personnel in the US.)
The Americans are shell-shocked because, in effect, hundreds of personnel will now have to be called back to Washington. Of course, Moscow has graciously left it to Washington to shuffle the personnel but the ceiling will be at 455, exactly on par with the slots Washington has provided for Russia. Unlike Obama’s decision to order the expelled Russian diplomats to leave the US within 72 hours, Moscow is allowing a month’s time for the excess US personnel to leave Russia.
Meanwhile, Russians also impounded 2 American compounds – a dacha in the bucolic environs of Moscow, which American diplomats and families use for R&R, and a warehouse where they store their supplies imported duty-free from abroad.
The catch is that Americans cannot complain, because parity and reciprocity are universally accepted principles in inter-state relations and Moscow is only demanding what it is entitled to – an equal relationship based on reciprocity. But in reality, the US embassy in Moscow is going to be crippled.
It is an ugly situation for Washington but entirely self-invited, thanks to Obama’s petulance and his ignorance of the Russian grit if challenged. The ‘Deep State’ in the US will cry for Russian blood because the bulk of American personnel to be recalled are most certainly spooks. The CIA station in Russia runs a big show and its undercover operations will be seriously affected.
Moscow has forewarned that there will be a ‘tit-for-tat’ response to any further moves against Russian diplomats in the US. The strong possibility is that a further round of expulsions of diplomats is just round the corner. There is always an option for Washington to discuss and resolve the differences to mutual satisfaction, but the political climate in Washington is not conducive for that.
Interestingly, Moscow has further clarified that Friday’s announcement is only by way of retaliation against Obama’s ill-advised move last December and Moscow reserves the right to react separately apropos the latest US sanctions.
The Russians have taken a tough line, no doubt, based on the estimation that a significant improvement in relations need not be expected for the foreseeable future. This is also evident from an interview with ABC News by Russian Deputy Foreign Minister Sergey Ryabkov on Sunday.
Embraer still waiting US approval for Iran plane sales
Press TV – July 30, 2017
Brazil’s regional jet maker Embraer says it is still waiting for an approval by the US Treasury Department for sales of aircraft to Iran.
The company was quoted by the media as saying that it remained “active and optimistic” with regards to its plans to sell planes to the Islamic Republic.
It added that providing the required funds for the planned sales to Iran was not so much the issue as gaining licenses from the Office of Foreign Assets Control (OFAC) of the US Treasury, the Aviation Week news website reported.
Iran in February 2016 confirmed that it had ordered 50 planes from Brazil’s Embraer, the world’s third biggest commercial aircraft manufacturer.
The confirmation was made by Mohammad Bagher Nobakht, the country’s government spokesman who emphasized that the deal with Embraer will be a hire purchase contract.
Reports later said the Brazilian company was considering a plan to sell its E-195 jets to Iran through a deal which would be worth above $1 billion.
The company requires an OFAC license for the sale to Iran of sensitive jet engine technology in its planes.
Sales of Embraer planes to Iran featured in trade talks between the Islamic Republic and Brazil during a visit to Tehran by Trade Minister Armando Monteiro.
Two major Iranian carriers – ATA and Kish Air – have already announced plans to purchase planes from the Brazilian company.
Apart from selling planes, Minister Monteiro also discussed potential sales of taxis, buses and trucks with Iranian officials during his visit to Tehran, the media reported.
World’s Richest Person Escapes Scrutiny From His Own Paper—and Its Rivals
By Adam Johnson | FAIR | July 28, 2017
The three most prominent US newspapers haven’t run a critical investigative piece on Jeff Bezos’ company Amazon in almost two years, a FAIR survey finds.
A review of 190 articles from the New York Times, Wall Street Journal and the Bezos-owned Washington Post over the past year paints a picture of almost uniformly uncritical–ofttimes boosterish–coverage. None of the articles were investigative exposes, 6 percent leaned negative, 54 percent were straight reporting or neutral in tone, and 40 percent were positive, mostly with a fawning or even press release–like tone.
The last major investigative piece we found in any of these three publications was a 4,500-word critique of Amazon’s labor practices in the New York Times (8/16/15) almost two years ago. Considering that Amazon is the fourth-most-valuable company in the world, with a 43 percent (and growing) share of all US online commerce, it’s a striking absence of journalistic scrutiny.
The line between straight reporting and fawning coverage wasn’t always clear, given the nature of technology journalism, but, in general, a distinction was drawn when reporting on Amazon’s latest moves featured no criticism or contrary third-party input, and the article was mostly indistinguishable from a press release.
Examples of this type of breathless corporate coverage, from a one-week span in 2016, included “Amazon’s Latest Weapon in the E-Commerce Wars: Its Own Air Force” (Washington Post, 8/6/16), “Amazon Reveals ‘Prime Air’ Cargo Jet” (Wall Street Journal, 8/5/16) and “Think Amazon’s Drone Delivery Idea Is a Gimmick? Think Again” (New York Times, 8/10/16). The most embarrassing example of outright PR pablum was this Washington Post “exclusive look,” based primarily on futurist porn speculation (3/2/17):
Amazing how a Bezos-owned paper got an “exclusive” on Jeff Bezos!
One can review the list and determinations here. We included articles about Amazon.com, Inc. (reviews of Amazon TV shows or stories about Amazon bestsellers, for example, were not included) that were significant enough for the outlets’ respective Twitter accounts to post the stories.
One might expect the Washington Post—the personal property of Bezos—to provide more favorable coverage of its owner’s company, but the Post’s level of uncritical praise, though very high, was roughly par for the course. About 95 percent of Post coverage ranged from neutral (43 percent) to positive/fawning (48 percent) in tone.
Ninety-three percent of New York Times coverage of Amazon and 94 percent of the Wall Street Journal’s ranged from straight news to press release. Fifty-seven percent of the Times‘ coverage and 31 percent of the Journal‘s could be characterized as somewhat to extremely flattering. (Note that the Post‘s level of positive coverage fell in between the two other papers’.)
One of the major reasons Amazon gets such glowing coverage is that tech journalism is traditionally not a very critical vertical. Tech company X reveals it’s doing Y or will do Z—that is, by the beat’s definition, newsworthy, and the press release is rewritten, with some added commentary from friendly talking heads and market analysts. Because it’s “tech,” the political or labor implications come in a distant second to the shiny-object quality of the beat.
Occasionally issues such as privacy or anti-trust or union unrest will be touched on, but this is usually in response to legal action taken by the state or by activists, not as a topic raised by reporters themselves. On a case by case basis, this is understandable (clearly not every tech write-up has to be an exposé), but on the whole, tech journalism is a media landscape dominated by corporate stenography.
With Amazon’s stock surging to well over $1,000 a share, and its head recently crowned the richest person in the world, the stakes for putting Amazon and Bezos in a critical light couldn’t be higher. Yet time and again, the pillars of US media provide them all the critical rigor a high school paper typically provides the spring dance committee.
US Oil Industry Warns Washington Over Venezuela Sanctions
teleSUR | July 28, 2017
U.S. oil and petrochemicals makers are warning President Donald Trump that proposed oil sanctions against Venezuela could hurt domestic companies and consumers.
In a letter sent to Trump and published in La Tabla.com, the head of the American Fuel and Petrochemical Manufacturers, Chet Thompson, wrote that the measures would not help to solve the problems in the South American nation.
Venezuela now sells more than 700,000 barrels of oil a day to the U.S. out of a total production of roughly two million barrels a day, or just over 2 percent of world production.
The document indicates that some 20 U.S. refineries are supplied with heavy Venezuelan crude, for which they have made substantial processing adjustments.
It says there are practically no other sources of supply for this type of oil.
So a suspension of purchases to Venezuela, would destabilize the world market for hydrocarbons.
The manufacturers estimate that the search for additional quotas of heavy crude would be extremely complicated and could increase costs, resulting in higher prices for consumers.
The two countries’ economies are tightly bound by the oil that Venezuela sells to the United States: It accounts for roughly 10 percent of the oil imported by the U.S.
In Washington, U.S. Vice President Mike Pence has reiterated the White House’s threat to impose “strong and swift economic actions” if Sunday’s National Constituent Assembly vote goes ahead.
While Republican U.S. Senator Marco Rubio noted that the Trump administration had announced sanctions this week, and added, “You can expect more.”
Trump targeted 13 senior Venezuelan officials on Wednesday, including the Vice President of the state-owned Petroleos de Venezuela SA, Simon Zerpa.
Other oil industry experts have also expressed concerns about the possible consequences of more sanctions.
Patrick DeHaan, a senior petroleum analyst for price-tracker GasBuddy, and Phil Flynn, a senior market analyst for the PRICE Futures Group in Chicago, both told UPI this week a potential ban on Venezuelan oil might have unintended consequences.
“A cut of Venezuelan exports would add about 15 to 25 cents a gallon to U.S. gasoline prices,” Flynn said.
Platts added that, for the refiners concentrated on the U.S. Gulf Coast, Venezuela is the largest source of crude oil, ahead of Saudi Arabia, noting those reviewing sanctions in the Trump administration recognize the potential for repercussions.
The administration source told Platts that “many within the Trump administration view sanctions on Venezuelan crude imports as having a more devastating effect on the U.S. refining sector than on Venezuela’s economy.”
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 Dawn of an Orwellian Future
By Robert Parry | Consortium News | July 28, 2017
It seems that The New York Times can’t let a good lie lie. Even after being pushed into running an embarrassing correction retracting its false claim that there was a consensus of all 17 U.S. intelligence agencies that Russia hacked Democratic emails and made them public to help Donald Trump defeat Hillary Clinton, the Times is back suggesting exactly that.
The Times’ current ploy is to say the Russian hacking claims are the “consensus” judgment of the U.S. intelligence community without citing a specific number of agencies. For instance, on Friday, the Times published an article by Matt Flegenheimer about the U.S. Senate vote to prevent President Trump from lifting sanctions on Russia and deployed the misleading phrasing:
“The Trump administration has opposed the sanctions against Russia, arguing that it needs flexibility to pursue a more collaborative diplomacy with a country that, by American intelligence consensus, interfered in last year’s presidential election.”
So, instead of explaining the truth – that the Jan. 6 “Intelligence Community Assessment” was the work of a small group of “hand-picked” analysts from three of the agencies under the watchful eye of then-CIA Director John Brennan and beneath the oversight of then-Director of National Intelligence James Clapper – the Times opts to give its readers the misleading impression that there was a “consensus” within the U.S. intelligence community.
In other words, unless a Times reader knows the truth by having read it at a non-mainstream media outlet such as Consortiumnews.com, that reader would continue to believe that all 17 intelligence agencies were in agreement on this foundational point in the Russia-gate affair.
Marginalizing Dissent
And the continuation of this willful deception comes as the Times and other mainstream media outlets make progress in their plans to deploy Internet algorithms to hunt down and marginalize what they deem “fake news,” including articles that challenge the mainstream media’s power to control the dominant news narrative.
A report by the World Socialist Web Site found that “in the three months since Internet monopoly Google announced plans to keep users from accessing ‘fake news,’ the global traffic rankings of a broad range of left-wing, progressive, anti-war and democratic rights organizations have fallen significantly.”
Google’s strategy is to downgrade search results for targeted Web sites based on a supposed desire to limit reader access to “low-quality” information, but the targets reportedly include some of the highest-quality alternative news sites on the Internet, such as – according to the report – Consortiumnews.com.
Google sponsors the First Draft Coalition, which was created to counter alleged “fake news” and consists of mainstream news outlets, including the Times and The Washington Post, as well as establishment-approved Web sites, such as Bellingcat, which has a close association with the anti-Russia and pro-NATO Atlantic Council.
This creation of a modern-day Ministry of Truth occurred under the cover of a mainstream-driven hysteria about “fake news” and “Russian propaganda” in the wake of Donald Trump’s election.
Last Thanksgiving Day, the Post ran a front-page article citing accusations from an anonymous Web site, PropOrNot, that identified 200 Web sites — including such Internet stalwarts as Truthdig, Counterpunch and Consortiumnews — as purveyors of “Russian propaganda.”
Apparently, PropOrNot’s standard was to smear any news outlet that questioned the State Department’s Official Narrative on the Ukraine crisis or some other global hot spot, but the Post didn’t offer any actual specifics of what these Web sites had done to earn their place on a McCarthyistic blacklist.
An Orwellian Future
In early May 2017, the Times chimed in with a laudatory article about how sophisticated algorithms could purge the Internet of alleged “fake news” or what the mainstream media deems to be “misinformation.”
As I wrote at the time, “you don’t need a huge amount of imagination to see how this combination of mainstream groupthink and artificial intelligence could create an Orwellian future in which only one side of a story gets told and the other side simply disappears from view.”
After my article appeared, I received a call from an NPR reporter who was planning a segment on this new technology and argued with me about my concerns. However, after I offered a detailed explanation about how I saw this as a classic case of the cure being far worse than the disease, I was not invited onto the NPR program.
Also, as for the relatively small number of willfully produced “fake news” stories, none appear to have traced back to Russia despite extensive efforts by the mainstream U.S. media to make the connection. When the U.S. mainstream media has tracked down a source of “fake news,” it has turned out to be some young entrepreneur trying to make some money by getting lots of clicks.
For instance, on Nov. 26, 2016, as the anti-Russia hysteria was heating up in the weeks following Trump’s election, the Times ran a relatively responsible article revealing how a leading “fake news” Web site was not connected to Russia at all but rather was a profit-making effort by an unemployed Georgian student who was using a Web site in Tbilisi to make money by promoting pro-Trump stories.
The owner of the Web site, 22-year-old Beqa Latsabidse, said he had initially tried to push stories favorable to Hillary Clinton but that proved unprofitable so he switched to publishing anti-Clinton and pro-Trump articles whether true or not.
While creators of intentionally “fake news” and baseless “conspiracy theories” deserve wholehearted condemnation, the idea of giving the Times and a collection of Google-approved news outlets the power to prevent public access to information that challenges equally mindless groupthinks is a chilling and dangerous prospect.
Russia-gate Doubts
Even if the Russian government did hack the Democratic emails and slip them to WikiLeaks – a charge that both the Kremlin and WikiLeaks deny – there is no claim that those emails were fake. Indeed, all evidence is that they were actual emails and newsworthy to boot.
Meanwhile, U.S. government accusations against the Russian network, RT, have related more to it covering topics that may make the Establishment look bad – such as the Occupy Wall Street protests, fracking for natural gas, and the opinions of third-party presidential candidates – than publishing false stories.
In some cases, State Department officials have even made their own false allegations in attacking RT.
The current Russia-gate frenzy is a particularly scary example of how dubious government conclusions and mainstream media falsehoods can propel the world toward nuclear destruction. The mainstream media’s certainty about Russia’s guilt in the disclosure of Democratic emails is a case in point even when many well-informed experts have expressed serious doubts — though almost always at alternative media sites.
See, for instance, former WMD inspector Scott Ritter’s warning about lessons unlearned from the Iraq debacle or the opinions of U.S. intelligence veterans who have questioned the accuracy of the Jan. 6 report on Russian hacking.
Perhaps these concerns are misplaced and the Jan. 6 report is correct, but the pursuit of truth should not simply be a case of grabbing onto the opinions of some “hand-picked” analysts working for political appointees, such as Brennan and Clapper. Truth should be subjected to rigorous testing against alternative viewpoints and contradictory arguments.
That has been a core principle since the days of the Enlightenment, that truth best emerges from withstanding challenges in the marketplace of ideas. Overturning that age-old truth – by today unleashing algorithms to enforce the Official Narrative – is a much greater threat to an informed electorate and to the health of democracy than the relatively few times when some kid makes up a bogus story to increase his Web traffic.
And, if this new process of marginalizing dissenting views is successful, who will hold The New York Times accountable when it intentionally misleads its readers with deceptive language about the U.S. intelligence community’s “consensus” regarding Russia and the Democratic emails?
Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s.
How the ‘Center’ Is Spinning Apart
By Alastair Crooke | Consortium News | July 28, 2017
That “icon” of the “centrists,” Facebook, recently wrote to a site on the U.S. “Alt-Right” telling them that various posts which they had authored must be immediately taken down, or would be deleted. The references which had offended were the words ‘trannies” for transgenders and “cross-dressers.” The message from Facebook further suggested that gender “identity” is considered a “protected characteristic” (under the law – which it is not), and that reference to transgenders as “trannies” could be considered “hate speech” (i.e. a legal offence).
A totally trivial issue, in itself, except that it goes to the heart of the disputed vision which encapsulates the present U.S. civil stand-off: On the one side, the notion that diversity, freely elected sexual orientation, and identity rights, equals societal cohesion and strength. Or, on the other hand, the vision encapsulated by Pat Buchanan: that a nation (including its new-comers) are bound more by the possession of a legacy of memories, a heritage of manners, customs and culture, and an attachment to a certain “way-of-being,” and principles of government. And it is this that constitutes the source of a nation’s strength.
The point here, is that the “centrist” center visibly is folding. The insistence to manage and control discourse (per Michel Foucault), around a strictly de-limited, political ideology is drawing now public disdain (and street demonstrations in the U.S.) targeted both at social media, and at elements of the MSM (mainstream media outlets, such as CNN). That is to say, the more the centrist diversity meme is pushed in the U.S., the greater the popular push-back, it seems.
The sites opposing such “correctness” are attracting a much higher audience than those espousing it. But that is not the whole story. It is not even the half of it: “the center” is giving way on multiple fronts (with huge, and likely turbulent consequence).
Foreign Policy Chaos
Most evidently, this is occurring in foreign policy generally, and in the Middle East more particularly. It has been only lightly reported in the MSM, but the U.S. National Security Council again has failed – according to reports – to offer any compelling arguments as to how America might, in any way, succeed in Afghanistan even with a hefty increase in military forces, (as advocated by NSC Advisor H.R. McMaster). It has been a long-haul war – and there will be no pleasing outcome to this war for anyone; rather the opposite – but that has been long evident to almost all who followed events there.
Secondly, Hizballah has routed – in just four days – Al Qaeda from the Arsal enclave in north Lebanon. Once again, Lebanon is contiguous with Syria, just as Iraq is now contiguous, adjoining and open to Syria. Aided by the psychological shock to insurgents of the news of the halting of CIA of weapons and salaries supplied to (some, not all) insurgent groups, the Syrian army and its partner forces are quite rapidly taking back the Syrian state. The U.S. has decided, it seems, that there are no good options for America in Syria, either. And that, when Raqa’a falls and ISIS is defeated, the White House may well conclude that U.S. objectives there will have been met.
Thirdly, the Iraqi people have been passing through a significant metamorphosis. Mobilized and radicalized by ISIS’s physical brutality and ideological totalitarianism in northern Iraq, this is a nation in motion: The political landscape, henceforth, will change too. The Shi’a of Iraq are sensing their empowerment.
The (unpopular) government, and the (respected, but now elderly) Hauza (religious leadership) – necessarily – are having to swim with this new tide of popular mobilization and self-assertion. These profound shifts in mood already are finding their reflection in Iraq’s strategic positioning in that Iraq is moving closer to Russia (i.e. the purchase of Russian T20 tanks), and to Syria and Iran. The “spine” of the Middle East is consolidating in a new way.
This mood-change may well shape, too, the future of Sunni Islam: Most ordinary Iraqi Sunnis have been repelled, and disgusted, by the excesses of Wahhabist Da’esh, (as have Syrians of all sects). Sunni citizens of Mosul – now free to relate their experiences – have been telling their Iraqi compatriots (I have been told) of their lingering anger at the ISIS’s beheadings of the local Sunni clergy for complaining about the un-Islamic actions of foreign jihadists in the ranks of Da’esh in Mosul. This adverse experience of Nejd Islam will have repercussions, ultimately, on Saudi Arabia and its leadership, (now heartily disliked in Iraq) – and America, Saudi Arabia’s close ally.
In short – for Europe and America – the “center” of its Middle East policy is folding (while its Gulf Cooperation Council-led bulwark is in crisis). Across the West, cries of distressed Syria “hawks” are in the air.
There will, of course, be repercussions: Israel will threaten that “it cannot stand idly-by” with Hizbullah and Iran situated on the Golan armistice line, and may try to test Russia’s resolve as guarantor of the southwest Syrian de-escalation zone. Prime Minister Benhamin Netanyahu is particularly angry that Israel has been outmaneuvered in Syria (by Russian President Putin), that the hope to create an Israeli-controlled cordon sanitaire inside southwest Syria has been frustrated. And Israel and its allies now will push the U.S. hard for a punitive containment vice to be imposed on Iran in retribution.
The new Saudi Regent (Crown Prince Mohammad bin Salma or MbS) represents another unpredictable and volatile element in this mix. Despite this, the Pentagon is well aware that much of Israel’s bluster concerning Iran, is just that: bluff. Israel, Saudi Arabia and UAE have no capacity to take on Iran, beyond a day – without America’s full backing.
Wobbly Economic Center
The other part of “the center,” which is looking increasingly wobbly, is that of economic policy. A consensus seems to be hardening among some market leaders that asset values cannot simply go on levitating upwards – carried up on a sea of liquidity, and near zero interest rates – entailing near zero volatility and one-sided trades that have the market listing like some capsizing, overloaded boat after all the passengers have rushed to one side of the craft.
Some market participants however, seem to believe that the Central Bankers will never have “the spine” either to hike rates, or to shrink their balance sheets, and thus face a market “tantrum.” These participants – until recently, perhaps a majority – believe that the new normal “boat” of low inflation and low rates – will continue to be floated off, practically indefinitely, albeit with the help of a further $20 trillion to $50 trillion of “qualitative easing” or QE.
This argument is far from new, but recently a substantial number of major financial leaders (and some Central Bankers) have been sounding grave warnings about the high multiple valuations of financial assets, about pockets of sub-prime debt re-emerging (automobile loans), and debt-to-GDP levels (personal and public) soaring above 2008 crisis values.
Global debt is up $68 trillion or 46 percent, since the eve of the 2008 financial crisis, and now stands at 327 percent of global output. A critical mass of senior financial opinion seems now to be turning. They put this troubling monetary and market distortion against the prospect of a U.S. debt ceiling likely to guillotine U.S. Federal Government spending quite imminently, and against the probability that deeply conflicted Congress – with polarization in both main parties – being able neither to pass a budget; nor produce the Trump “reflation”; nor even launch a significant infrastructure re-build.
Their fear is that there is a substantial tranche of congressmen and senators in both parties that are so hostile to Trump that they would be happy to see him fall flat on his face – even at the cost of economic crisis. Or, they worry that even if some stimulus is passed, that the Central Banks will remove the liquidity punchbowl from markets too fast. Either way, they see grave risks running through to the end of this year, and into 2018.
In short, not just foreign policy but financial policy, too, may find itself hostage to the dissolved center of U.S. politics – with all which that implies, i.e., the lack of the functioning, largely centralized, mainly cohesive unit, that used to be the American government as it has been known since World War Two.
Inviting Push-back
And here we return to our initial, rather trivial anecdote about Facebook trying to re-establish the centrist meme of gender choice being an undiscussable “protected category.” The point is that the center is not holding: the more it tries, the more it invites, and gets, willful push-back.
Equally, as the hawks clamor to restore the former centrist foreign policy meme that arming, training and paying Wahhabi jihadists to slaughter 100,000 Syrian soldiers (many, if not most of whom, were Sunni) represents an American interest is no longer holding. See, for example, David Stockman’s Bravo! Trump, For The Tweet That Is Shaking The War Party (Trump: “The Amazon Washington Post fabricated the facts on my ending massive, dangerous, and wasteful payments to Syrian rebels fighting Assad…..”).
And the meme that too much debt should be solved by adding even more debt – and that the consequent soaring asset inflation should be welcomed as mere confirmation that economic recovery is unfolding, as it should – is no longer holding also. This whole approach is now in sharp contention.
Even the Central Bankers now worry about asset inflation (that they themselves have nurtured) but they worry even more about the consequences of any attempt to roll it back. They lie between a rock and a hard place.
Where will this take us? Possibly, the psychological turmoil of the reverses in U.S. foreign policy will continue to roil throughout the summer; but come autumn, there may be less U.S. appetite (or attention available) for foreign policy initiatives as the economic “winter” approaches. Or, at worst, the sheer overwhelming conflict on the domestic front could invite the notion that a foreign initiative would prove a welcome distraction from economic woes.
Iran and North Korea are the current U.S. rhetorical punching bags, but neither should ever be contemplated as candidates for some “distraction.” Rather they represent potential nemeses.
As for the economic woes – not so much QE 4 – but direct, deficit funding helicopter money beckons, perhaps. Which is to say that freshly minted new, “empty” money would be used to directly fund Federal expenditure. (Trump in business, has never shied away from debt).
Often it is said that there is no precedent to our present extraordinary monetary circumstances, but the history of the Assignat in France of the early 1790s, offers some hints. Despite massive money creation, Andrew White, in his book Fiat Money Inflation in France (published in 1896) notes that “[t]hough paper money had increased in amount, prosperity had steadily diminished. In spite of all the paper issues, commercial activity grew more and more spasmodic. Enterprise was chilled and business became more and more stagnant”.
Finally, just to be clear, Donald Trump undoubtedly is facilitating the dissolution of the Establishment’s “center” – but that, after all, was his declared aim. But he is not responsible for it. This potential was already latent: he simply saw it – and adroitly, climbed aboard.
Alastair Crooke is a former British diplomat who was a senior figure in British intelligence and in European Union diplomacy. He is the founder and director of the Conflicts Forum.











