Tag Archives: Michael Hudson

reflections on 2020 and forecasts from Chris Williamson and Michael Hudson

On January 4th, Ross Ashcroft host of Renegade Inc invited ex-Labour MP Chris Williamson and economist Michael Hudson to review the past year and make forecasts for the year ahead. The full episode is embedded below:

On the question of what has been revealed to him by the events of 2020, Hudson says [from 17:35 mins]:

“Well, it’s obvious that the economy never had recovered from the Obama depression, when he bailed out the banks not the economy. So the question is how long can the economy limp along without recovery.

Well, it’s obvious now that the debts can’t be paid, but the coronavirus has only catalysed all of that; it’s made it even clearer. So in a sense the Biden administration is going to be picking up just where the Obama administration left off, namely with huge evictions.

Obama evicted about 10 million families. Most of them were black and Hispanic – lower income families – who were the victims of defaulted mortgages.

Biden’s going to start his administration by kicking out probably another five million families – again, black and Hispanic families are going to be the big losers because they were the people who had the highest [levels] of coronavirus and were the first to be laid off…

You had the trend in home ownership going up to about 2008 and now it’s been going down and this is just going to continue. And people somehow imagine there’s going to be a recovery. People imagine that somehow we can recover from the post-2008 breakdown and [in fact] it’s obvious we can’t recover. You’re going to have the polarisation of the economy that has been occurring for the last 12 years simply accelerate.”

Reflecting on the inevitable fall of Bernie Sanders and the selection of Kamala Harris as Biden’s running mate, Hudson says [from 21:20 mins]:

“The surprise that I really shouldn’t have been surprised at is how naive Bernie Sanders’ supporters were in thinking that they were going to get a fair deal and that the elections were going to be fair… so what happened to Sanders is the same as what happened to Corbyn at the hands of the Labour Party.

So Tulsi Gabbard’s takedown of Kamala Harris was absolutely wonderful. Everybody just broke out laughing and of course that’s why she was marginalised and now we have Kamala Harris as the senior Vice President.”

[Inserted clip of] Tulsi Gabbard:

“Senator Harris says he’s proud of her record as a prosecutor and that she’ll be a prosecutor president, but I’m deeply concerned about this record. She put over 1,500 people in jail for marijuana violations and then laughed about it when she was asked if she ever smoked marijuana. She blocked evidence that would have freed an innocent man from death row until the courts forced her to do so. She kept people in prison beyond their sentences to use them as cheap labour for the state of California. And she fought to keep the cash bail system in place that impacts poor people in the worse kind of way.”

Meanwhile, Chris Williamson, a close ally of Corbyn and prominent victim of the Labour witch-hunt, explains how under Keir Starmer’s leadership Labour is already facing an existential crisis [from 3:40 mins]:

“I think it’s in terminal decline actually. It’s gone from a hopeful vehicle, a vehicle that I think a lot of people (when Jeremy Corbyn was elected as leader) thought would bring about real transformational change in the country, but as a result of the dirty tricks, the smears, the negativity in the media, throughout the establishment [and] in the Parliamentary Labour Party’s bureaucracy, [this has] completely derailed it.

And regrettably, Jeremy listened to advisors who I think were giving him duff information, duff advice, and rather than challenging those who were seeking to smear and undermine him, he sought to appease them, and to capitulate to them, and that simply meant that his allies were being systematically thrown under the bus one by one. I mean well, on an industrial scale in reality.

Now with Keir Starmer at the helm people are leaving [the party] in their tens of thousands. People really do feel politically homeless and I think it’s an existential crisis facing the Labour Party right now.”

With regards to the new Labour leadership, Williamson says [from 5:00 mins]:

“The fact that the Labour Party has elected a knight of the realm tells you a story doesn’t it…

Here we have the leader of the party, who is a pillar of the establishment. And not only is he a knight of the realm, but he’s also a member of the Trilateral Commission, which was a shady organisation set up nearly fifty years ago by a bunch of [neo-]liberals who were concerned by an ‘excess of democracy’ in the 1960s: people getting ahead of themselves and using democracy to assert their rights which was seen as unconscionable to them.

Now, Keir Starmer is the only parliamentarian in Britain who is a member of this shady organisation. What on earth is going on?”

On the question of who’s behind Keir Starmer, Williamson says [from 5:50 mins]:

“Well I think it’s very clear that the wealthy elites – the establishment in Britain – support Keir Starmer. The military-industrial complex backs Keir Starmer. The Murdoch press, you know, and the wider gutter press back Keir Starmer.

The people who have got concerns about Keir Starmer are trade unionists. People who use the Labour Party as a vehicle hopefully to deliver some form of socialism are concerned about Keir Starmer…

And his only hope really I think of winning an election as leader of the Labour Party is if the establishment media get behind him – that might give him a fighting chance of success. But the number of activists who will be prepared to go out and campaign for him are very few and far between now.

People have been really demoralised by what’s happened; even people who actually voted for him in the hope that he would maintain the Corbyn principles, but he’s jettisoned them all and it really doesn’t bode well I think.”

He continues [from 9:40 mins]:

“Jeremy Corbyn represented a dramatic shift from the political consensus which has held sway for the last thirty years at least, probably longer than that. This was a man who was interested in a socialist alternative that really wasn’t acceptable to the capitalist vested interests in this country, and he was somebody as well – and this troubled them more than anything – someone who was promoting peace and disarmament and a genuinely ethical foreign policy.

He even had a Shadow Minister for Peace and Disarmament – I mean that would have been an incredible sight to see: a permanent member of the Security Council with a Minister for Peace and Disarmament.

Official portrait of Fabian Hamilton, Shadow Minister for Peace and Disarmament appointed by Jeremy Corbyn in November 2016

I was hoping that Britain would get a reputation for spreading peace around the world rather than arms sales and war.”

Regarding the growing divide between the Labour Party and the Labour movement, Williamson says [from 10:50 mins]:

“The Labour Party, particularly the parliamentary party, is entirely divorced I think from the Labour movement and can no longer claim to be the political voice of the organised working class. It is a voice, I’m afraid to say, of the corporate vested interests and they’ve really desperately lost their way. And I firmly believe therefore that we need to push for a new political vehicle to replace the Labour Party in the coming years.”

Finally, looking forward to 2021, Williamson says [from 12:25 mins]:

“Let me give you one prediction which I think is almost bound to some true and that is Jeremy Corbyn will be expelled from the Labour Party and a new political vehicle will be established in 2021.”

Leave a comment

Filed under analysis & opinion, Britain, USA

the united colours of Bilderberg — a late review of Montreux 2019: #7 global system reset

Important note: It is well past the period spanning the end of May and beginning of June when Bilderberg meetings are ordinarily scheduled, so it should be observed that the home page of the official Bilderberg website still declares in bold capitals:

THE MEETING 2020 IS POSTPONED.

It does not say for how long.

“The illusion of freedom will continue as long as it’s profitable to continue the illusion. At the point where the illusion becomes too expensive to maintain, they will just take down the scenery, they will pull back the curtains, they will move the tables and chairs out of the way and you will see the brick wall at the back of the theater.”

— Frank Zappa

This is the seventh and last of a sequence of articles based around the ‘key topics’ at last year’s Bilderberg conference discussed here in relation to the prevailing political agenda and placed within the immediate historical context.

This piece focuses on issues relating to the future of humanity and including ‘The Ethics of Artificial Intelligence’:

A schematically enhanced version of last year’s ‘key topics’

*

The new normal

In May 2017, Forbes magazine published a piece by financial analyst and writer John Maudlin that bears the prophetic title: “Brace Yourself For ‘The Great Reset’”. Interestingly, the piece is not concerned with climate change or forthcoming pandemics, but simply addresses what Maudlin describes as “the largest twin bubbles in the history of the world”:

One of those bubbles is global debt, especially government debt. The other is the even larger bubble of government promises.

These promises add up to hundreds of trillions of dollars. That’s vastly larger than global GDP.

These are real problems we must face. It will mean forging a new social contract. It will also require changes to taxes and the economy. I believe that within the next 5–10 years, we have to end the debt and government promises.

The banking crisis that broke in 2008 has festered ever since; western economies today are continually propped up thanks to vast injections of cheap money: non-stop rounds of quantitative easing with interest rates maintained at levels close to zero. Maudlin was right therefore to forewarn of the ramifications of what have been systematic failures; ones that by the time of publication of his article had already generated a global debt-to-GDP of 325%.

Moreover, he was far from alone in sounding the alarm. As recently as last July, the New York Federal Reserve’s own in-house model, which predicts the probability of a US recession occurring in the next 12 months and is regarded as critical indicator, recorded its highest level since 2009: a reading of 32.9% for June. As Business Insider reported:

“That could mean tough times ahead, considering the measure has breached the 30% threshold before every recession since 1960.” 1

Then in October (still in the months before covid), former Bank of England Governor, Mervyn King, went on the record to say that he believed the world was sleepwalking into another crash:

Giving a lecture in Washington at the annual meeting of the International Monetary Fund, King said there had been no fundamental questioning of the ideas that led to the crisis of a decade ago.

“Another economic and financial crisis would be devastating to the legitimacy of a democratic market system,” he said. “By sticking to the new orthodoxy of monetary policy and pretending that we have made the banking system safe, we are sleepwalking towards that crisis.”

He added that the US would suffer a “financial armageddon” if its central bank – the Federal Reserve – lacked the necessary firepower to combat another episode similar to the sub-prime mortgage sell-off. 2

Click here to read the full Guardian article.

Nor is Maudlin isolated when it comes to questioning whether levels of public spending are sustainable, although here he is necessarily buttressing his own ideological stance and keen to advocate further neoliberal reforms as a matter of unavoidable necessity. Thus, he continues:

What I mean by government promises are pensions and healthcare benefits. 3

Yet beyond the title of Maudlin’s piece, so far his forecast has been rather less than impressive. Instead of policies of stringent austerity, the crisis we now face has in fact resulted in a sudden flood of government spending. It transpires that ‘magic money trees’ aren’t really so hard to find after all.

Moreover, a sizeable fraction of that money has gone directly into the pockets of ordinary people through elaborate schemes set up to compensate for the shutdown of our societies. Meanwhile, a great deal more is being siphoned off into the coffers of global corporations – in America especially, this grand theft has been brazen, whereas in Britain the transfer of public money is a stealthier affair: a prime example being the £100 million wasted on privatised track-and-trace systems run by Serco.

Peter Geoghegan of OpenDemocracy discloses how the Tory government has exploited the coronavirus crisis and handed over multiple millions of pounds of public money in the form of contracts to friends of the party:

Of course, the situation is a temporary one and so the current economic measures are stopgaps, but still this easy availability of public money puts an immediate lie to simplistic arguments that previously justified a decade of austerity. Governments are not constrained to live within their means like households. Austerity is always an ideological choice and never an inescapable inevitability – as I have argued many times before, it is in any case counterproductive because it stifles growth.

That said, historically high levels of government debt do provide a perfect and very nearly irresistible excuse for waves of future austerity and for the sell-off of public assets. This is how disaster capitalism works.

*

On October 7th, economists Michael Hudson and Steve Keen were invited to discuss the current state of western economies and how the so-called ‘K-shaped recovery’ is now dividing the world into haves and have-nots with Peter Lavelle on RT’s Crosstalk.

Michael Hudson explained the ‘new normal’ as follows:

“What has become normal since 2008 has been completely different from the old normal. People have the idea that with ‘normal’ you go back to a balance. But really the economy hasn’t grown at all since the 2008 crisis. All of the growth in GDP, all of the growth in wealth, has accrued to the financial sector, to the real estate sector, and to the one percent. For the ninety-nine percent of the people, they’ve gone down and down and down.

“So the ‘new normal’ is you can’t get rich again by buying housing and joining the middle class like you used to. The ‘new normal’ is paying all of your increase in wages on debt service, in rents, and in monopoly prices. And so the ‘new normal’ is that the market is going to shrink and shrink until we look like Greece looks in the last five years. Think of the ‘new normal’ as looking like Greece: debt deflation and rent deflation.” [from 2:10 mins]

*

The great reset

Today, if you visit the website of the World Economic Forum, you will come across an article by its founder and Executive Chairman Klaus Schwab that likewise calls for “a great reset”. From the main page, there is then a link to what WEF calls its “Great Reset microsite”, where the blurb reads:

As we enter a unique window of opportunity to shape the recovery, this initiative will offer insights to help inform all those determining the future state of global relations, the direction of national economies, the priorities of societies, the nature of business models and the management of a global commons. Drawing from the vision and vast expertise of the leaders engaged across the Forum’s communities, the Great Reset initiative has a set of dimensions to build a new social contract that honours the dignity of every human being.

Time for the Great Reset – screenshot of WEF website

Schwab, a former member of the Bilderberg group steering committee, writes that:

We must use it [the COVID-19 crisis] to secure the Great Reset that we so badly need. That will require stronger and more effective governments, though this does not imply an ideological push for bigger ones. And it will demand private-sector engagement every step of the way.

Dressed up as a synthesis of capitalism and socialism, here the thinly-veiled intention is to amalgamate the worst elements of both systems with an ever-tightening alliance between global corporations and governments, and the replacement of any meaningful representative democracy with greater accountability going instead to so-called “stakeholder” interests. Schwab continues:

The Great Reset agenda would have three main components. The first would steer the market toward fairer outcomes. To this end, governments should improve coordination (for example, in tax, regulatory, and fiscal policy), upgrade trade arrangements, and create the conditions for a “stakeholder economy.” At a time of diminishing tax bases and soaring public debt, governments have a powerful incentive to pursue such action.

Combined with these market-orientated reforms the public can also look forward to enjoying “socialism” in the form of restrictions on individual freedom for reasons of “sustainability”, “intellectual property” rights, green taxes, and, within an overarching plan for the ‘Fourth Industrial Revolution’, the growth of “smart cities”:

Moreover, governments should implement long-overdue reforms that promote more equitable outcomes. Depending on the country, these may include changes to wealth taxes, the withdrawal of fossil-fuel subsidies, and new rules governing intellectual property, trade, and competition.

The second component of a Great Reset agenda would ensure that investments advance shared goals, such as equality and sustainability. […]

[F]or example, building “green” urban infrastructure and creating incentives for industries to improve their track record on environmental, social, and governance (ESG) metrics.

The third and final priority of a Great Reset agenda is to harness the innovations of the Fourth Industrial Revolution to support the public good, especially by addressing health and social challenges. 4

Click here to read the full piece by Klaus Schwab entitled “Now is the time for a ‘great reset’”.

*

AI is key to the NWO transformation

Meanwhile, as long ago as April 3rd – albeit with his crystal ball firmly in hand – Bilderberg’s most illustrious war criminal wrote this in an op-ed by The Wall Street Journal:

When the Covid-19 pandemic is over, many countries’ institutions will be perceived as having failed. Whether this judgment is objectively fair is irrelevant. The reality is the world will never be the same after the coronavirus.

Adding:

Global leaders have learned important lessons from the 2008 financial crisis. The current economic crisis is more complex: The contraction unleashed by the coronavirus is, in its speed and global scale, unlike anything ever known in history. 5

Kissinger’s solution to this impending crisis when boiled down (and seeing through all of the cant about “ameliorat[ing] the effects of impending chaos on the world’s most vulnerable populations” and “defend[ing] and sustain[ing] their Enlightenment values”) is this: to “safeguard the principles of the liberal world order.” Where for “liberal” we must read “neo-liberal”, and for “world order” we should prefix with the adjective “new” (as Kissinger himself has done on countless past occasions).

Indeed, here is Kissinger presenting a keynote conversation just last year at the George W. Bush Presidential Center beneath the very title “The New World Order” (not that he elucidates much on what he envisions for the NWO):

Kissinger’s view of ‘the shape of things to come’ might be better gauged from an article published August last year and provocatively entitled “The Metamorphosis” that was co-authored by Bilderberg confederate, former executive chairman of Alphabet Inc and current chair of the US Department of Defense’s Defense Innovation Advisory Board, Eric Schmidt, along with fellow techie and former director of Amazon, Daniel Huttenlocher. In it they write:

If AI improves constantly—and there is no reason to think it will not—the changes it will impose on human life will be transformative. Here are but two illustrations: a macro-example from the field of global and national security, and a micro-example dealing with the potential role of AI in human relationships.

The first of these examples relates to the development of new weapons and strategies, and implications for arms control and deterrence. The second is headed simply “Human Contact” and begins as follows:

Google Home and Amazon’s Alexa are digital assistants already installed in millions of homes and designed for daily conversation: They answer queries and offer advice that, especially to children, may seem intelligent, even wise. And they can become a solution to the abiding loneliness of the elderly, many of whom interact with these devices as friends.

The more data AI gathers and analyzes, the more precise it becomes, so devices such as these will learn their owners’ preferences and take them into account in shaping their answers. And as they get “smarter,” they will become more intimate companions. As a result, AI could induce humans to feel toward it emotions it is incapable of reciprocating.

Already, people rank their smartphones as their most important possession. They name their Roombas, and attribute intent to them where none exists. What happens when these devices become even more sophisticated? Will people become as attached to their digital pets as to their dogs—or perhaps even more so?

All of which tiptoes very lightly indeed around the major concern when it comes to our routine installation of hi-tech surveillance equipment inside the home; Alexa already far exceeds the intrusion of Orwell’s telescreens in his dystopian nightmare Nineteen Eighty-Four – and there is something else to worry about here (mention of it is again buried away in the middle of the text):

AI algorithms will help open new frontiers of knowledge, while at the same time narrowing information choices and enhancing the capacity to suppress new or challenging ideas.

As Eric Schmidt is perfectly well aware, of course, this is precisely what the Google algorithm already does. Social media platforms have also been installing filters to censor content, narrow opinion and condemn us to engage in ever decreasing bubbles of discussion. When one echo chamber then rubs up against another no light is shed, but only increasing levels of heat. Obviously, it isn’t AI as such that narrows and suppresses public debate, but the actions of the tech giants with their more or less unregulated control over content.

Then, finally, they get to the crux of the matter:

The technological capacity of governments to monitor the behavior and movements of tens or hundreds of millions is likewise unprecedented. Even in the West, this quest can, in the name of harmony, become a slippery slope. Balancing the risks of aberrant behavior against limits on personal freedom—or even defining aberrant—will be a crucial challenge of the AI era. 6

But once again, it isn’t AI that defines “aberrant” either, it’s whoever operates the AI and has control over the algorithms – and to understand who that is, I recommend studying the lists of Bilderberg participants throughout the past decade. Ever more prominent amongst the ranks of the great and good you will find many of the biggest names in Silicon Valley – one of whom, Reid Hoffman, also happen to sit on Eric Schimdt’s Defense Innovation Advisory Board alongside owner of Amazon and The Washington Post, “the richest man in modern history”, Jeff Bezos.

*

Klaus Schwab and the fascist new deal

“We are at the threshold of a radical systemic change that requires human beings to adapt continuously. As a result, we may witness an increasing degree of polarization in the world, marked by those who embrace change versus those who resist it.

“This gives rise to an inequality that goes beyond the societal one described earlier. This ontological inequality will separate those who adapt from those who resist—the material winners and losers in all senses of the words. The winners may even benefit from some form of radical human improvement generated by certain segments of the fourth industrial revolution (such as genetic engineering) from which the losers will be deprived. This risks creating class conflicts and other clashes unlike anything we have seen before”

— Klaus Schwab 7

*

Those who believe the multi-billionaire class of plutocrats who gather annually at Davos and more “privately” at Bilderberg do so in pursuit of “socialism” are either delusional or else miss the point for more deliberate reasons. In fact, the primary agenda set forth by these exclusive clubs is rather more straightforward and perfectly understandable if we adjust to see the world through the jaundiced eyes of its membership. The goal is to forge an ever-tightening relationship between the corporations (which they already own and control) and governments (where political power ultimately resides) until eventually there will be no distinction.

This process of public-private convergence has been underway for many decades with groups like Bilderberg and WEF at the vanguard. If and when the merger they seek is completed, our society will be governed wholly in accordance to a political regime known as corporatism, which is a form of fascism (of the type first implemented by Mussolini).

As Winter Oak explains in a very recent article entitled “Klaus Schwab and his Great Fascist Reset”:

While communism envisages the take-over of business and industry by the government, which – theoretically! – acts in the interests of the people, fascism was all about using the state to protect and advance the interests of the wealthy elite.

In other words, fascism and socialism (at least ‘state socialism’ which first emerged in the Soviet Union) are superficially similar but mainly because they are both statist, while in other ways they are diametrically opposed. That said, fascists have historically used “socialism” for left-cover, and this trend continues today.

The same article then breaks down how Schwab’s plans for a “stakeholder society” (with its leftist overtones) can be rolled out in order to achieve the kinds of fascist (or corporatist) ends desired:

[I]n 1971 [Schwab] founded the European Management Forum, which held annual meetings at Davos in Switzerland. Here he promoted his ideology of “stakeholder” capitalism in which businesses were brought into closer co-operation with government.

“Stakeholder capitalism” is described by Forbes business magazine as “the notion that a firm focuses on meeting the needs of all its stakeholders: customers, employees, partners, the community, and society as a whole”.

Even in the context of a particular business, it is invariably an empty label. As the Forbes article notes, it actually only means that “firms can go on privately shoveling money to their shareholders and executives, while maintaining a public front of exquisite social sensitivity and exemplary altruism”.

But in a general social context, the stakeholder concept is even more nefarious, discarding any idea of democracy, rule by the people, in favour of rule by corporate interests.

Society is no longer regarded as a living community but as a business, whose profitability is the sole valid aim of human activity.

Schwab set out this agenda back in 1971, in his book Moderne Unternehmensführung im Maschinenbau (Modern Enterprise Management in Mechanical Engineering), where his use of the term “stakeholders” (die Interessenten) effectively redefined human beings not as citizens, free individuals or members of communities, but as secondary participants in a massive commercial enterprise.

The aim of each and every person’s life was “to achieve long-term growth and prosperity” for this enterprise – in other words, to protect and increase the wealth of the capitalist elite.

Winter Oak then highlights and discusses at length admissions made by Schwab in his writings for public consumption and in particular his 2016 book The Fourth Industrial Revolution [the same term is often abbreviated to 4IR]:

Schwab waxes lyrical about the 4IR, which he insists is “unlike anything humankind has experienced before”.

He gushes: “Consider the unlimited possibilities of having billions of people connected by mobile devices, giving rise to unprecedented processing power, storage capabilities and knowledge access. Or think about the staggering confluence of emerging technology breakthroughs, covering wide-ranging fields such as artificial intelligence (AI), robotics, the internet of things (IoT), autonomous vehicles, 3D printing, nanotechnology, biotechnology, materials science, energy storage and quantum computing, to name a few. Many of these innovations are in their infancy, but they are already reaching an inflection point in their development as they build on and amplify each other in a fusion of technologies across the physical, digital and biological worlds”.

He also looks forward to more online education, involving “the use of virtual and augmented reality” to “dramatically improve educational outcomes”, to sensors “installed in homes, clothes and accessories, cities, transport and energy networks” and to smart cities, with their all-important “data platforms”.

“All things will be smart and connected to the internet”, says Schwab, and this will extend to animals, as “sensors wired in cattle can communicate to each other through a mobile phone network”.

He loves the idea of “smart cell factories” which could enable “the accelerated generation of vaccines” and “big-data technologies”.

These, he ensures us, will “deliver new and innovative ways to service citizens and customers” and we will have to stop objecting to businesses profiting from harnessing and selling information about every aspect of our personal lives.

“Establishing trust in the data and algorithms used to make decisions will be vital,” insists Schwab. “Citizen concerns over privacy and establishing accountability in business and legal structures will require adjustments in thinking”.

At the end of the day it is clear that all this technological excitement revolves purely around profit, or “value” as Schwab prefers to term it in his 21st century corporate newspeak.

Perhaps unsurprisingly, Schwab also writes with tremendous enthusiasm about the use of the blockchain (the distributed ledger behind cryptocurrencies like Bitcoin) and 5G technology, and then, having pronounced that “a world full of drones offers a world full of possibilities”, he spells out what the “revolution” means at a human level, saying “Already, advances in neurotechnologies and biotechnologies are forcing us to question what it means to be human”

The following passage is quoted directly from his more recent book Shaping the Future of the Fourth Industrial Revolution (2018):

“Fourth Industrial Revolution technologies will not stop at becoming part of the physical world around us—they will become part of us. Indeed, some of us already feel that our smartphones have become an extension of ourselves. Today’s external devices—from wearable computers to virtual reality headsets—will almost certainly become implantable in our bodies and brains. Exoskeletons and prosthetics will increase our physical power, while advances in neurotechnology enhance our cognitive abilities. We will become better able to manipulate our own genes, and those of our children. These developments raise profound questions: Where do we draw the line between human and machine? What does it mean to be human?”

This is where Schwab turns to a favourite subject: transhumanism – and please bear in mind that he was raised in Germany (born in 1938) during the last years of The Third Reich – which as Winter Oak reminds us was “a police-state regime built on fear and violence, on brainwashing and control, on propaganda and lies, on industrialism and eugenics, on dehumanisation and ‘disinfection’, on a chilling and grandiose vision of a “new order” that would last a thousand years.”

The article continues:

A whole section of this book is devoted to the theme “Altering the Human Being”. Here he drools over “the ability of new technologies to literally become part of us” and invokes a cyborg future involving “curious mixes of digital-and-analog life that will redefine our very natures”.

He writes: “These technologies will operate within our own biology and change how we interface with the world. They are capable of crossing the boundaries of body and mind, enhancing our physical abilities, and even having a lasting impact on life itself “.

No violation seems to go too far for Schwab, who dreams of “active implantable microchips that break the skin barrier of our bodies”, “smart tattoos”, “biological computing” and “custom-designed organisms”.

He is delighted to report that “sensors, memory switches and circuits can be encoded in common human gut bacteria”, that “Smart Dust, arrays of full computers with antennas, each much smaller than a grain of sand, can now organize themselves inside the body” and that “implanted devices will likely also help to communicate thoughts normally expressed verbally through a ‘built-in’ smartphone, and potentially unexpressed thoughts or moods by reading brain waves and other signals”.

“Synthetic biology” is on the horizon in Schwab’s 4IR world, giving the technocratic capitalist rulers of the world “the ability to customize organisms by writing DNA”.

The idea of neurotechnologies, in which humans will have fully artificial memories implanted in the brain, is enough to make some of us feel faintly sick, as is “the prospect of connecting our brains to VR through cortical modems, implants or nanobots”.

It is of little comfort to learn that this is all – of course! – in the greater interests of capitalist profiteering since it “heralds new industries and systems for value creation” and “represents an opportunity to create entire new systems of value in the Fourth Industrial Revolution”.

Click here to read the full article by Winter Oak entitled “Klaus Schwab and His Great Fascist Reset”.

And here to read an extended post about the nature of fascism and how historically it has repeatedly disguised its true intentions with recourse to ‘left cover’.

*

The future of humanity

“Evolution moves towards greater complexity, greater elegance, greater knowledge, greater intelligence, greater beauty, greater creativity, and greater levels of subtle attributes such as love. In every monotheistic tradition God is likewise described as all of these qualities, only without limitation: infinite knowledge, infinite intelligence, infinite beauty, infinite creativity, infinite love, and so on. Of course, even the accelerating growth of evolution never achieves an infinite level, but as it explodes exponentially it certainly moves rapidly in that direction. So evolution moves inexorably towards this conception of God, although never quite reaching this ideal. We can regard, therefore, the freeing of our thinking from the severe limitations of its biological form to be an essentially spiritual undertaking.”

— Ray Kurzweil 8

*

Nick Bostrom is a philosopher with deep scientific and technical training 9 ,who aside from being Director of the Future of Humanity Institute at Oxford University is also co-founder of the World Transhumanist Association (renamed Humanity+, Inc.) as well as an acknowledged inspiration for Elon Musk and Bill Gates. 10

A self-confessed utopian, Bostrom is strangely religious in that way only scientific materialists can be: so he has dreams of constructing a future heaven by wholly technological means and with ethical foundations grounded and held firm by pure reason. Inspired, he says, by a youthful acquaintance with the philosophies of Schopenhauer and Nietzsche, his envisioned Utopia will be a brave new world that is infinitely more delightful, more pleasurable, and finally more pristine than Huxley’s arch conception – a place without death and, in all likelihood, devoid of all corporeality. Subscribing to an increasingly fashionable opinion that the physical universe is just some kind of digital simulation (it used to be clockwork), Bostrom’s Utopia, is set to be the best of all possible simulations: the matrix par excellence! 11

That said, Bostrom is amongst first to acknowledge that unavoidably the road to hell is also paved with good intentions. Indeed, lurking just beneath his sometimes optimistic and occasionally exuberant facade, it is hard not to discern a rather desperate almost pathological desire to escape the horrors of the material world.

During an interview conducted by the Guardian in 2016, he was asked about membership of Alcor, “the cryogenic initiative that promises to freeze mortal remains in the hope that, one day, minds can be reinvigorated and uploaded in digital form to live in perpetuity.” The conversation with Tim Adams then proceeded as follows:

“I have a policy of never commenting on my funeral arrangements,” he says.

But he thinks there is a value in cryogenic research?

“It seems a pretty rational thing for people to do if they can afford it,” he says. “When you think about what life in the quite near future could be like, trying to store the information in your brain seems like a conservative option as opposed to burning the brain down and throwing it away. Unless you are really confident that the information will never be useful…”12

Bostrom was one of a handful of academics and another of the new faces who made it on to the guest list at Bilderberg last year. A few months prior to his attendance, in January 2019, he had also been invited to chat with head of TED and business entrepreneur, Chris Anderson, about his “Vulnerable World Hypothesis”.

As Business Insider reported:

Philosopher Nick Bostrom is known for making scary predictions about humanity.

Over 15 years ago, he made the case that we are all living in a Matrix-like simulation run by another civilization. The idea, though difficult to swallow, is well-regarded by some philosophers, and has even been sanctioned by Elon Musk.

Many years later, Bostrom isn’t done outlining frightening scenarios.

On Wednesday, he took the stage at the TED 2019 conference in Vancouver, Canada, to discuss another radical  theory. While speaking to head of the conference, Chris Anderson, Bostrom argued that mass surveillance could be one of the only ways to save humanity from ultimate doom. 13

The full discussion is embedded below:

What Bostrom goes on to outline is a world threatened by ever more sophisticated future technologies whether from advances in nuclear arms; bioweapons research; development of drone swarms; or from other applications of AI: all of which do indeed have the potential to destroy civilisation.

What he says he fears most is that one of these future technologies might become ‘democratised’, accidentally enabling rogue individuals who are without compunction to deliver a Samson-like attack that brings the world down on our heads. In preempting such an existential catastrophe Bostrom therefore presents four solutions.

The first is simply to control the development of such dangerous new technologies; an approach that Bostrom quickly dismisses (for reasons that are hard to fathom). The second, subtitled “eliminate bad actors”, is already more sinister and accompanied by a strange image of a drone sending love bombs (presumably) to dissuade some future assailant. Bostrom half jokes “I think it’s like a hybrid picture: I think ‘eliminate’ could mean incarcerate or kill, or it could persuade them to a better view of the world.”

He continues:

“Suppose you were extremely successful in this and you reduced the number of such individuals by half. And if you want to do it by persuasion I mean you’re competing against all other powerful forces that are trying to persuade people: [political?] parties, religion, education systems; but, suppose you could reduce it by half: I don’t think the risk would be reduced by half, it would maybe be reduced by five or ten percent.” [from 14:45 mins]

Response 2: Eliminate bad actors

That brings him to ‘Response 3: Mass Surveillance’ – Chris Anderson fittingly describes this as the “Minority Report option”:

“So I think there are two general methods that we could use to achieve the ability to stabilise the world against a whole spectrum of possible vulnerabilities. Probably we need both. So one is an extremely effective ability to do preventive policing, such that if anybody started to do this dangerous thing, you could intercept them in real time and stop them. This would require ubiquitous surveillance – everyone would be monitored all the time… AI algorithms, big ‘freedom centres’ that were reviewing this, you know, etc, etc. [from 15:30 mins]

Response 3: Mass Surveillance

Referring to the accompanying picture (see screenshot above), he adds:

“Yes, so this little device there – you might have a kind of necklace that you would have to wear at all times with multidirectional cameras. But to make it go down better just call it ‘the freedom tag’ or something like that.” [from 16:15 mins]

And finally we have ‘Response 4: Global governance’.

Bostrom says, “Surveillance would be kind of [plugging the] governance gap at the micro-level – preventing anyone ever doing something highly illegal – then there is a corresponding governance gap at the macro-level, at the global level. You would need the ability reliably to prevent the worst kinds of global coordination failures: to avoid wars between great powers; arms races; and cataclysmic commons problems. [from 16:55 min]

Asked in summary what the likelihood is that we’re all doomed, he replies:

“On an individual level I mean we seem to be kind of doomed anyway just with a timeline from rotting and aging and all kinds of things.” [from 20:00 mins]

As Business Insider points out:

Under Bostrom’s vision of mass surveillance, humans would be monitored at all times via artificial intelligence, which would send information to “freedom centers” that work to save us from doom. To make this possible, he said, all humans would have to wear necklaces, or “freedom tags,” with multi-directional cameras.

The idea is controversial under any circumstance, but especially at TED, which has focused this year on strategies to ensure privacy in the digital era.

Even Bostrom recognizes that the scenario could go horribly wrong.

“Obviously there are huge downsides and indeed massive risks to mass surveillance and global governance,” he told the crowd. But he still thinks the ends might justify the means.

“On an individual level, we seem to be kind of doomed anyway,” he said.

Click here to read the full article published by Business Insider entitled “An Oxford philosopher who’s inspired Elon Musk thinks mass surveillance might be the only way to save humanity from doom”.

*

In this video essay Tom Nicholas contextualises Muskian futurism to ask what its appeal is and what other social, political, economic and cultural movements it might have something in common with. In the final segment he discusses the ramifications of some of Musk’s specific projects – his is not a vision of egalitarian prosperity for all, but one of gilded corridors for an elite few:

*

Final, final thoughts: Ctrl-Alt-Del

“Humans will be able to evolve by harnessing the super-intelligence and extra abilities offered by the machines of the future, by joining with them. All this points to the development of a new human species, known in the science-fiction world as ‘cyborgs’. It doesn’t mean that everyone has to become a cyborg. If you are happy with your state as a human then so be it, you can remain as you are. But be warned – just as we humans split from our chimpanzee cousins years ago, so cyborgs will split from humans. Those who remain as humans are likely to become a sub-species. They will, effectively, be the chimpanzees of the future”

— Kevin Warwick 14

*

Some years ago I had been thinking up names for an envisaged progressive political movement, when, after realising that all of the traditional labels ‘people’s’, ‘popular’, ‘democratic’, ‘freedom’, ‘revolutionary’, etc were already irreparably sullied, it occurred to me that in our mimetic age something snappier might be more suitable. Something along the lines of ‘system reset’, although without the Maoist overtones! Briefly that led me to consider the familiar 3-fingered salute on every computer keyboard, Ctrl-Alt-Del: a consideration that altogether stopped me in my tracks.

In fact, picking apart the elements, Ctrl-Alt-Del already represents the three-pronged assault we are increasingly subjected to: the plutocrats using these precise three strategies to oppress and dominate. First through Ctrl by means of propaganda and censorship, with the steady encroachment of mass surveillance in all areas of our lives (the panopticon), and arguably too with the mental health crisis and widespread prescription of ‘chemical cosh’ opiates and more Soma-like SSRI antidepressants.

In a recent study by scientists at University of Chicago, it was found that rats given anti-anxiety medications were less inclined to free a companion in distress, presumably because they didn’t have the same ability to feel empathy:

Next is Alt (i.e., alteration) with rollout of GMO in agriculture and transhumanism which opens the door to many developments including the advent of designer babies by means of gene editing and the literal rewiring of human consciousness. Finally there is Del (delete) by virtue of ‘population control’ which is a shorthand euphemism for the desire to dramatically reduce human numbers.

Bostrom clearly stands at the forefront of methods of Ctrl and Alt being a leading proponent of total surveillance and for transhumanism, which is basically eugenics 2.0 enhanced by virtue of refined genetic manipulation and accentuated by means interfacing with machines. As Bostrom’s Humanity+ announces its own intentions:

What does it mean to be human in a technologically enhanced world? Humanity+ is a 501(c)3 international nonprofit membership organization that advocates the ethical use of technology, such as artificial intelligence, to expand human capacities. In other words, we want people to be better than well. This is the goal of transhumanism. 15

‘Better than well’ is putting it extremely mildly. If you read past the opening statements then you quickly appreciate that the final goal is nothing short of total mastery of biology in order to achieve absolute control of human life and everything in the biosphere. Advocates of such godlike dominion over Nature should perhaps attend to the writings of Mary Shelley and Johann von Goethe. For Bostrom with his outspoken desire to install mass surveillance to save the world, I also recommend a healthy dose of Orwell.

It is almost tempting to think that the choice of Ctrl-Alt-Del was meant to be a piece of subliminal predictive programming, except that the man credited with its origins is an IBM engineer called David Bradley, who says it was not intended for use by ordinary end users but helpful for software designers. Curiously, however, as Bradley also says (see interview embedded above): “I may have invented control-alt-delete, but Bill Gates made it really famous.” 16

*

Additional: ‘Against Transhumanism: the Delusion of Technological Transcendence’

Richard Jones is a Professor of Materials Physics and Innovation Policy at the University of Manchester. Jones is an experimental physicist, whose research centres around the properties of polymer molecules at interfaces and ultrathin polymer films.

Between 2007 and 2009 he was the Senior Strategic Advisor for Nanotechnology for the UK’s Engineering and Physical Sciences Research Council; he was also Pro-Vice-Chancellor for Research and Innovation at the University of Sheffield from 2009 to 2016.

In this discussion with futurist and transhumanist enthusiast Nikola Danaylov, Jones covers a variety of topics including his own work in nanotechnology and his book and blog on the topic; technological progress and whether it is accelerating or not; Ray Kurzweil and technological determinism; Platonism and Frank J. Tipler‘s claim that “the singularity is inevitable”; the strange ideological routes of transhumanism; Eric Drexler’s vision of nanotechnology as reducing the material world to software; the over-representation of physicists on both sides of the transhumanism and AI debate; mind uploading and the importance of molecules as the most fundamental unit of biological processing; the quest for indefinite life extension and the work of Aubrey de Grey; and the importance of politics and ethics in technology.

Richard Jones’ scholarly book Against Transhumanism: the delusion of technological transcendence is available free for download: Against Transhumanism, v1.0, PDF 650 kB.

*

1 From an article entitled “A critical recession indicator used by the Fed just hit its highest level since the financial crisis” written by Carmen Reinicke, published by Business Insider on July 9, 2019. https://markets.businessinsider.com/news/stocks/next-recession-forecast-new-york-fed-model-highest-since-2009-2019-7-1028338398#

2 From an article entitled “World economy is sleepwalking into a new financial crisis, warns Mervyn King” written by Larry Elliott, published in the Guardian on October 20, 2019. https://www.theguardian.com/business/2019/oct/20/world-sleepwalking-to-another-financial-crisis-says-mervyn-king?CMP=share_btn_tw

3 From an article entitled “Brace Yourself For ‘The Great Reset’” written by John Maudlin, published in Forbes magazine on May 31, 2017. https://www.forbes.com/sites/johnmauldin/2017/05/31/mauldin-brace-yourself-for-the-great-reset/

4 From an article entitled “Now is the time for a ‘great reset’” written by Klaus Schwab published by the World Economic Forum on June 3, 2020. https://www.weforum.org/agenda/2020/06/now-is-the-time-for-a-great-reset/

5 From an article entitled “The Coronavirus Pandemic Will Forever Alter the World Order” written by Henry Kissinger, published in The Wall Street Journal on April 3, 2010. https://www.wsj.com/articles/the-coronavirus-pandemic-will-forever-alter-the-world-order-11585953005?mod=opinion_lead_pos5

6 From an article entitled “The Metamorphosis” written by Henry Kissenger, Eric Schmidt and Daniel Huttenlocher, published in the August 2019 issue of The Atlantic magazine. https://www.theatlantic.com/magazine/archive/2019/08/henry-kissinger-the-metamorphosis-ai/592771/

7 Quote taken from The Fourth Industrial Revolution written by Klaus Schwab (2016).

8 Quote is taken from The Singularity Is Near (2005) written by Ray Kurzweil.

9 He was awarded a PhD in philosophy, but perhaps a more fitting title is ‘futurist’.

10

Bostrom, a 43-year-old Swedish-born philosopher, has lately acquired something of the status of prophet of doom among those currently doing most to shape our civilisation: the tech billionaires of Silicon Valley. His reputation rests primarily on his book Superintelligence: Paths, Dangers, Strategies, which was a surprise New York Times bestseller last year and now arrives in paperback, trailing must-read recommendations from Bill Gates and Tesla’s Elon Musk. (In the best kind of literary review, Musk also gave Bostrom’s institute £1m to continue to pursue its inquiries.)

From an article entitled “Artificial intelligence: ‘We’re like children playing with a bomb’” written by Tim Adams, published in the Guardian on June 12, 2016. https://www.theguardian.com/technology/2016/jun/12/nick-bostrom-artificial-intelligence-machine

11 His Letter from Utopia (2008) is available to read on his website. https://nickbostrom.com/utopia.html

12 From an article entitled “Artificial intelligence: ‘We’re like children playing with a bomb’” written by Tim Adams, published in the Guardian on June 12, 2016. https://www.theguardian.com/technology/2016/jun/12/nick-bostrom-artificial-intelligence-machine

13 From an article entitled “An Oxford philosopher who’s inspired Elon Musk thinks mass surveillance might be the only way to save humanity from doom” written by Aria Bendix, published in Business Insider on April 19, 2019. https://www.businessinsider.com/nick-bostrom-mass-surveillance-could-save-humanity-2019-4?r=US&IR=T

14 Quote from I, Cyborg written by Kevin Warwick, published in 2002.

15 https://humanityplus.org/

16 From an article entitled “Ctrl-Alt-Del inventor makes final reboot: David Bradley, we salute you” written by Andrew Orlowski, published in The Register on January 29, 2004. https://www.theregister.com/2004/01/29/ctrlaltdel_inventor_makes_final_reboot/

Leave a comment

Filed under analysis & opinion, GMO, internet freedom, mass surveillance, police state

corona marginalia: grand theft redux

The bailout package that US Congress just passed represents a $500 Billion+ transfer of wealth from the public sphere into the coffers of the corporations. Arguably, it is the largest theft in US history.

The following extract from an article written by Pam and Russ Martens examines the small print to reveal how this latest bailout – one of  the largest corporate bailouts in US history – has been deliberately crafted to dodge oversight:

The U.S. Senate voted 96-0 late yesterday [March 25th] on a massive bailout of Wall Street banks versus a short-term survival plan for American workers thrown out of their jobs – and potentially their homes. The text of the final bill was breathtaking in the breadth of new powers it bestowed on the Federal Reserve, including the Fed’s ability to conduct secret meetings with no minutes provided to the American people. The House of Representatives has yet to vote on the bill.

The bill provides specific sums that can be made as loans or loan guarantees to passenger airlines ($25 billion), cargo airlines ($4 billion), and loans and loan guarantees to businesses necessary to national security ($17 billion). But when it comes to the money going to the Federal Reserve and then out the door to Wall Street, the legislation says only this:

“Not more than the sum of $454,000,000,000…shall be available to make loans and loan guarantees to, and other investments in, programs or facilities established by the Board of Governors of the Federal Reserve System for the purpose of providing liquidity to the financial system….”

Why does the Federal Reserve need $454 billion from the U.S. taxpayer to bail out Wall Street when it has the power to create money out of thin air and has already dumped more than $9 trillion cumulatively in revolving loans to prop up Wall Street’s trading houses since September 17, 2019 – long before there was any diagnosis of coronavirus anywhere in the world.

The Fed needs that money to create more Special Purpose Vehicles (SPVs) — the same device used by Enron to hide its toxic debt off its balance sheet before it went belly up. With the taxpayers’ money taking a 10 percent stake in the various Wall Street bailout programs offered by the Fed, structured as SPVs, the Fed can keep these dark pools off its balance sheet while levering them up 10-fold. […]

Adding to the suspicions that the Fed doesn’t want to have to battle Freedom of Information Act (FOIA) requests (sunshine law requests) again in court, as it did and lost during the last financial crisis to keep its outrageous $29 trillion bailout program to Wall Street a secret from the public, the Senate-approved stimulus bill repeals the sunshine law for the Fed’s meetings until the President says the coronavirus threat is over or the end of this year. That could make any FOIA lawsuits to unleash details of what’s going on next to impossible since it has been codified in a federal law. The bill states the following:

SEC. 4009. TEMPORARY GOVERNMENT IN THE SUNSHINE ACT RELIEF. (a) IN GENERAL.—Except as provided in subsection 8 (b), notwithstanding any other provision of law, if the Chairman of the Board of Governors of the Federal Reserve System determines, in writing, that unusual and exigent circumstances exist, the Board may conduct meetings without regard to the requirements of section 552b of title 5, United States Code, during the period beginning on the date of enactment of this Act and ending on the earlier of— (1) the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (50 20 U.S.C. 1601 et seq.) terminates; or (2) December 31, 2020.

This could mean that the American taxpayer may never learn why it went into debt to the tune of $454 billion if no records are being maintained.

Click here to read the full article by Pam Martens and Russ Martens, published by Wall Street on Parade.

*

Meanwhile Rob Urie asks: where is the bailout of the people?

Most readers probably don’t know this, but the Federal Reserve began re-bailing out Wall Street early last Fall, well before the coronavirus hit. Why this matters is that it indicates that nothing was fundamentally fixed through earlier bailouts. Hedge funds of the sort that pay their executives tens of millions of dollars created the market dislocations they claim to be able to exploit. In 2007 these strategies were derided as ‘picking up pennies in front of a steamroller’ for their tendency to earn regular profits until they give them all back plus some when they blow up.

The socially and economically rational solution to these types of blow-ups is to unwind the trades — the bailout, and then shut the hedge funds down and make their managers find honest work in other industries. However, what the Federal Reserve has been doing, following from the Obama administration’s decision to keep insolvent banks on life support in perpetuity, is to manage markets so that losing trades don’t result in loses.

*

With Donald Trump’s threat to ‘get America working again’ by Easter (April 12th), the same tactic that turned Italy’s pandemic from tragedy to catastrophe is being repeated on a much larger scale here. And for what? In an economy where the richest 1% takes all the gains while the poor and working class haven’t seen a raise in four decades, it is the rich who will reap the benefits while workers get sick and die. It is finance capitalism that is being bailed out when it should have suffocated under its own weight in 2009.

Where are the bailouts for the people? $1,200 checks against $30,000 bills for being treated for coronavirus? Why isn’t providing healthcare for all of the people the primary objective of the bailouts? Mr. Trump says he will send workers back to work while Democrats leave them no alternative but to work or starve. Without providing them the means— assured by meager bailouts, Democrats are every bit as guilty as Donald Trump of sending working people to die in a pandemic to add a few more dollars to the bank accounts of the rich.

More to the point, where are the virus test kits, ventilators and protective equipment for health care workers and the rest of us? Nick Turse of The Intercept puts a lie to the claim that the need for these couldn’t have been foreseen. For decades epidemiologists and health care professionals have been shouting from the rooftops about the need to prepare for a pandemic caused by a respiratory virus. Successive neoliberal governments dismissed the warnings and here we are to suffer the consequences.

When Mr. Trump uttered ‘our country wasn’t built to be shut down,’ one could be forgiven for asking whose country he was talking about and why it can’t be shut down? The country that most of us inhabit has been in the process of being shut down for some four decades through outsourcing, privatization, austerity and cuts to the social safety net. The region I live in was completely shut down in 2008 and stayed closed until just recently. That’s how long it took the last round of bailouts to land here.

Implied in the statement is that we, the people, must comport ourselves with the dictates of ‘the economy’ rather than the other way around. For all of the talk of freedom and democracy, the economy is theorized to exist in a realm where human needs are secondary, a mere matter of opinion. The coronavirus pandemic can’t in any meaningful sense be said to have been chosen. Neither are the marginal existences many of us live. In this way, deference to the economic system is cover for power relations, not a natural order.

Click here to read the full article written by Rob Urie, published in Counterpunch.

*

The alternative: Economist Michael Hudson calls for a corona debt jubilee

America’s 2008 bank crash offered a great opportunity to write down the often fraudulent junk mortgages that burdened many lower-income families, especially minorities. But this was not done, and millions of American families were evicted. The way to restore normalcy today is a debt write-down. The debts in deepest arrears and most likely to default are student debts, medical debts, general consumer debts and purely speculative debts. They block spending on goods and services, shrinking the “real” economy. A write-down would be pragmatic, not merely moral sympathy with the less affluent.

In fact, it could create what the Germans called an “Economic Miracle” — their own modern debt jubilee in 1948, the currency reform administered by the Allied Powers. When the Deutsche Mark was introduced, replacing the Reichsmark, 90 percent of government and private debt was wiped out. Germany emerged as an almost debt-free country, with low costs of production that jump-started its modern economy.

Critics warn of a creditor collapse and ruinous costs to government. But if the U.S. government can finance $4.5 trillion in quantitative easing, it can absorb the cost of forgoing student and other debt. And for private lenders, only bad loans need be wiped out. Much of what would be written off are accruals, late charges and penalties on loans gone bad. It actually subsidizes bad lending to leave them in place.

In the past, the politically powerful financial sector has blocked a write-down. Until now, the basic ethic of most of us has been that debts must be repaid. But it is time to recognize that most debts now cannot be paid — through no real fault of the debtors in the face of today’s economic disaster.

The coronavirus outbreak is serving as a mind-expansion exercise, making hitherto unthinkable solutions thinkable. Debts that can’t be paid won’t be. A debt jubilee may be the best way out.

Click here to read Michael Hudson’s full article calling for a “Corona Debt Jubilee”.

*

On Episode 1278 of the Keiser Report [September 11th, 2018], Michael Hudson discussed the historical precedents for a debt jubilee:

Leave a comment

Filed under analysis & opinion, Max Keiser, neo-liberalism

the united colours of Bilderberg — a late review of Montreux 2019: #2 (un)stable strategic order

This is the second of a sequence of articles based around the ‘key topics’ to last year’s Bilderberg conference discussed in relation to the prevailing political agenda and placed within the immediate historical context.

This piece focuses on issues relating to China and Russia:


A schematically enhanced version of last year’s ‘key topics’

*

The price of “full spectrum dominance”

“I have said earlier that the United States is now totally frank about putting its cards on the table. That is the case. Its official declared policy is now defined as ‘full spectrum dominance’. That is not my term, it is theirs. ‘Full spectrum dominance’ means control of land, sea, air and space and all attendant resources.” [from 38:30 mins]

These sobering words come from Harold Pinter’s acceptance speech after he was awarded the Nobel Prize for Literature in 2005. Dying from cancer and confined to a wheelchair, Pinter courageously seized the occasion and used it as a final opportunity to speak truth to power.

He continued:

“The United States now occupies 702 military installations throughout the world in 132 countries, with the honourable exception of Sweden, of course. We don’t quite know how they got there but they are there all right.

“The United States possesses 8,000 active and operational nuclear warheads. Two thousand are on hair trigger alert, ready to be launched with 15 minutes warning. It is developing new systems of nuclear force, known as bunker busters. The British, ever cooperative, are intending to replace their own nuclear missile, Trident. Who, I wonder, are they aiming at? Osama bin Laden? You? Me? Joe Dokes? China? Paris? Who knows? What we do know is that this infantile insanity – the possession and threatened use of nuclear weapons – is at the heart of present American political philosophy. We must remind ourselves that the United States is on a permanent military footing and shows no sign of relaxing it.” 1

In March 2018 ‘Democracy Now!’ interviewed former New York Times reporter Stephen Kinzer, author of “Overthrow: America’s Century of Regime Change from Hawaii to Iraq”. Kinzer reminds us of just a few of the many U.S.-backed coups and invasions beginning with the overthrow of Nicaraguan President José Santos Zelaya (1909) to the toppling of democratic Prime Minister Mosaddegh in the 1953 Iranian coup d’état to the Dominican Republic to Honduras to Cuba. He also discusses the radical anti-imperialism of Mark Twain:

*

During the decade and a half that has passed since Pinter gave his impassioned speech, the US State Department under Hilary Clinton pressed for the disastrous Nato-led regime change operation to topple Gaddafi in Libya (2011), while under the pretext of fighting al-Qaeda in the Arabian Peninsula (AQAP), the same Obama administration simultaneously waged war on Yemen, a conflict that since 2015 was further escalated under a Saudi-led and US-backed coalition. 2

A UN report on Yemen released in September accuses the Saudi-led coalition of killing tens of thousands since 2015 and of starving to death a further 85,000 children as a deliberate war tactic. It further accuses America, Britain and France, who have armed and provided logistical support and intelligence to the Saudis, of complicity in those war crimes:

Tamer Kirolos, Country Director of Save the Children said:
“It’s unacceptable that those responsible for the killing, maiming and other grave violations against thousands of Yemeni children are yet to face any consequences. The report even notes the use of starvation as a weapon of war, resulting in thousands of children facing severe malnutrition. Children are not only dying from bombs and bullets, they are being smothered silently because they are denied food.” 3

[Bold highlights as in the original]

Meanwhile, under Timber Sycamore and other clandestine operations, the US and its Gulf State allies has also supplied weapons, training and funding directly to Islamist terrorist groups in repeated efforts to destabilise Syria.

And today, as Trump and the neo-con faction surrounding him continue to heighten tensions with Iran, the US already has forces, many of which are private contractors, deployed widely across the Middle East, Africa and further afield:

The U.S. military reportedly has more than 1.3 million men and women on active duty, with more than 200,000 of them stationed overseas in nearly every country in the world. Those numbers are likely significantly higher in keeping with the Pentagon’s policy of not fully disclosing where and how many troops are deployed for the sake of “operational security and denying the enemy any advantage.” As investigative journalist David Vine explains, “Although few Americans realize it, the United States likely has more bases in foreign lands than any other people, nation, or empire in history.”

Don’t fall for the propaganda, though: America’s military forces aren’t being deployed abroad to protect our freedoms here at home. Rather, they’re being used to guard oil fields, build foreign infrastructure and protect the financial interests of the corporate elite. In fact, the United States military spends about $81 billion a year just to protect oil supplies around the world.

The reach of America’s military empire includes close to 800 bases in as many as 160 countries, operated at a cost of more than $156 billion annually. As Vine reports, “Even US military resorts and recreation areas in places like the Bavarian Alps and Seoul, South Korea, are bases of a kind. Worldwide, the military runs more than 170 golf courses.”

This is how a military empire occupies the globe.

The extract above is taken from a recent article written by John Whitehead, president of The Rutherford Institute and author of Battlefield America: The War on the American People, who continues:

War spending is bankrupting America.

Although the U.S. constitutes only 5% of the world’s population, America boasts almost 50% of the world’s total military expenditure, spending more on the military than the next 19 biggest spending nations combined.

In fact, the Pentagon spends more on war than all 50 states combined spend on health, education, welfare, and safety.

The American military-industrial complex has erected an empire unsurpassed in history in its breadth and scope, one dedicated to conducting perpetual warfare throughout the earth.

Since 2001, the U.S. government has spent more than $4.7 trillion waging its endless wars.

Having been co-opted by greedy defense contractors, corrupt politicians and incompetent government officials, America’s expanding military empire is bleeding the country dry at a rate of more than $32 million per hour.

In fact, the U.S. government has spent more money every five seconds in Iraq than the average American earns in a year.

Future wars and military exercises waged around the globe are expected to push the total bill upwards of $12 trillion by 2053. 4

Click here to read John Whitehead’s full article entitled “Come Home America: Stop Policing the World and Waging Endless Wars” published by Counterpunch.

On Monday 13th, Taya Graham of ‘The Real News Network’ spoke to CodePink co-founder Medea Benjamin about why special interests are promoting conflict with Iran, the nearly inevitable veto of the War Powers resolution vote, and the urgent need for popular antiwar resistance:

*

Sanctions against China: the flagrant lies and double standards

On December 3rd, the US House of Representatives passed by a vote of 407 to 1 the Uighur Intervention and Global Humanitarian Unified Response Act (UIGHUR Act), a stronger amended version of the Uyghur Human Rights Policy Act of 2019, which had previously passed the Senate by unanimous consent on September 11th. This revised bill is now awaiting approval by the Senate:

[The bill] adds provisions that require the president to sanction Chinese government officials responsible for the repression of Uighurs, a predominantly Muslim Turkic ethnic group, and places restrictions on the export of devices that could be used to spy on or restrict the communications or movement of members of the group and other Chinese citizens. […]

Among other provisions, the bill requires the president to submit to Congress within 120 days a list of senior Chinese government officials guilty of human rights abuses against Uighurs in Xianjiang or elsewhere in China. That list would include Xinjiang Party Secretary Chen Quanguo and officials responsible for mass incarceration or “re-education” efforts that single out Uighurs and other predominantly Muslim ethnic minorities.

The president would be required to impose visa and financial restrictions on the listed individuals under the Global Magnitsky Act. 5

Click here to read the full article published by Bloomberg on December 3rd.

A fortnight earlier on November 20th, the House had passed Hong Kong Human Rights and Democracy Act of 2019 (HKHRDA) by 417-1 which again allowed for targeted sanctions.

The justification for the introduction and tightening of sanctions on China is twofold. Firstly it is to protect human rights protesters in Hong Kong and secondly to protect the Uyghurs, a largely Muslim population who live in the Xinjiang province of the north-west.

I have discussed the Hong Kong protests in previous articles (for instance here) and the evidence is overwhelming that genuine grievances have been deliberately inflamed by agencies working on behalf of the US State Department. Such strategies for fomenting colour revolution are tried and tested and other recent examples have included the failed coup attempt in Venezuela and the victorious Maidan in Ukraine. Today neo-Nazis from Ukraine who have flown out to Hong Kong are actively helping out:

With their flamboyant waving of US and British colonial flags and tendency to belt out the American national anthem on megaphones, anti-China separatists in Hong Kong have made themselves a magnet for the US far-right. Staff of the website InfoWars, right-wing social media personality Paul Joseph Watson, and the ultra-conservative group Patriot Prayer are among those who have made pilgrimages to the protests.

The latest collection of extreme-right activists to reinforce the ranks of the Hong Kong separatists are from Ukraine. They call themselves Gonor and have tattoos on their upper torsos with undeniable symbols of white supremacy and neo-Nazism.

These extremists previously fought in a notoriously brutal neo-Nazi militia called the Azov Battalion, in Ukraine’s war against pro-Russian militants. 6

Click here to read the full report by Ben Norton published in The Grayzone.

No mention of this is ever reported by the corporate media, of course; just as the neo-Nazi presence during the original Maidan was deliberately downplayed and ignored. You do not want to have your colour revolution spoiled by uncomfortable facts leaking out.

Which brings me to consider another often-repeated mainstream story: how the Chinese government has arrested and detained a million or more Uyghur, who are being held and tortured inside secret “re-education camps”. Such is the sheer scale of this alleged programme of ethnic cleansing that it encourages comparison to the genocidal regime of the Khmer Rouge in Cambodia or the concentration camps of Nazi Germany. So what is the hard evidence and how reliable are sources?

The claim that China has detained millions of ethnic Uyghurs in its Xinjiang region is repeated with increasing frequency, but little scrutiny is ever applied. Yet a closer look at the figure and how it was obtained reveals a serious deficiency in data.

While this extraordinary claim is treated as unassailable in the West, it is, in fact, based on two highly dubious “studies.

The first, by the US government-backed Network of Chinese Human Rights Defenders, formed its estimate by interviewing a grand total of eight people.

The second study relied on flimsy media reports and speculation. It was authored by Adrian Zenz, a far-right fundamentalist Christian who opposes homosexuality and gender equality, supports “scriptural spanking” of children, and believes he is “led by God” on a “mission” against China. 7

The assessment is made by investigative journalists Ajit Singh and Max Blumenthal writing in The Grayzone. The same piece continues:

The “millions detained” figure was first popularized by a Washington, DC-based NGO that is backed by the US government, the Network of Chinese Human Rights Defenders (CHRD).

In a 2018 report submitted to the UN Committee on the Elimination of Racial Discrimination – often misrepresented in Western media as a UN-authored report – CHRD “estimate[d] that roughly one million members of ethnic Uyghurs have been sent to ‘re-education’ detention camps and roughly two million have been forced to attend ‘re-education’ programs in Xinjiang.” According to CHRD, this figure was “[b]ased on interviews and limited data.”

While CHRD states that it interviewed dozens of ethnic Uyghurs in the course of its study, their enormous estimate was ultimately based on interviews with exactly eight Uyghur individuals.

[Bold highlights as in the original]

Continuing:

In its mounting pressure campaign against China, the US is not only relying on CHRD for data; it is directly funding its operations. As Ben Norton and Ajit Singh previously reported for The Grayzone, CHRD receives significant financial support from Washington’s regime-change arm, the National Endowment for Democracy (NED).

For anyone who remains unfamiliar with the work of the NED, please read this earlier article.

Click here to read the full article which provides a detailed profile of born-again Christian, Adrian Zenz, who:

“recently explained in an interview with the Wall Street Journal. ‘I feel very clearly led by God to do this,’ he said. ‘I can put it that way. I’m not afraid to say that. With Xinjiang, things really changed. It became like a mission, or a ministry.’”

*

The fact that Beijing operates a repressive authoritarian regime is not in dispute. There is also irrefutable evidence that China incarcerates many thousands of political prisoners, amongst whom members of the Uygher minority are disproportionally targeted. Others are secretly executed. Why then would the West bother to engage in a campaign that exaggerates the level of human rights abuses taking place?

The short answer is that China is now singled out because America and its close allies wish to isolate and impose sanctions just as they have done previously with Russia, Syria and, most recently, Iran. Sanctions are, of course, the basic tool for economic warfare.

The slightly longer answer is that in order to satisfy their objective, Chinese human rights abuses need necessarily be portrayed as categorically different from the crimes of Western allies. This falsehood is maintained in large part by comparative silence concerning, for instance, the human rights violations under the totalitarian rule of military dictator Abdel el-Sisi in Egypt; the ongoing ethnic cleansing of Muslims in Kashmir carried out by Hindu nationalist Narendra Modi; or the daily crimes against humanity perpetrated by Israel and Saudi Arabia…

Saudi Arabian dissidents do not expect to live for very long. Instead they expect to be tortured, beheaded and ‘crucified’. Or in the case of Washington Post correspondent, Jamal Khashoggi, dismembered alive with a bonesaw on the personal orders of Crown Prince Mohammed bin Salman.

Meanwhile, under Israel’s apartheid system, which was formalised after the passing of the Nation-State Law in 2018, one third of the five million registered Palestinian refugees, born of families who lost their homes when their land was ethnically cleansed at the time of the 1948 Nakba, remain crammed into permanent refugee camps in Jordan, Lebanon, Syria, and the West Bank. Another third (1.85 million to be exact) exist under a constant economic blockade inside Gaza’s open-air prison and are subjected to periodic military assaults which Israeli strategists and hardliners casually describe as “mowing the lawn”. Those brave enough to protest against these dire conditions are routinely shot at with live ammunition. During the last two years Great March of Return, nearly two hundred unarmed people including many women and children have been killed by IDF snipers, while another six thousand are now maimed for life.

So this becomes a numbers game, with the figures for Uygher victims necessarily measured in excess of the less deserving victims of Egypt, India, Israel or Saudi Arabia, whose plight is correspondingly under-reported and forgotten. Moreover, although the unrelenting war and blockade of Yemen has caused a prolonged cholera epidemic and mass starvation that amounts to actual genocide, this grotesque crime against humanity is seldom if ever mentioned in the news, which prefers to reserve hyperbolic comparisons to Nazi Germany for China rather than India and Saudi Arabia (or allies Britain and France).

*

The grey zone

On June 13th, BBC Newsnight broadcast a report on a new mission for the SAS and other UK special forces, which, should ministers choose to authorise it, is set “to counter Russian and other forces around the world.”

As Newsnight’s Diplomatic and Defence Editor, Mark Urban, reported in a related BBC news article:

The plan [called ‘Special Operations Concept’] is currently being considered by military chiefs, Whitehall insiders tell me, and will soon be sent to ministers and is likely to be approved.

The Ministry of Defence has said it does not comment on the UK Special Forces.

UK Special Forces are meant to provide more options for low-profile actions in places where overtly committing conventional troops would be difficult.

For example, under the new plan, an operation might be mounted in a Baltic republic or African country in order to uncover and pinpoint Russian covert activities. […]

The new missions would take UKSF units in a less “kinetic” or violent direction – after almost 20 years of man-hunting strike missions in the Middle East and Afghanistan – and into closer cooperation with allied intelligence agencies and MI6.

The same piece continues:

The role of the SRR [Special Reconnaissance Regiment: one of the three main elements of the UK’s Special Forces working along the SAS and SBS], which carries out covert surveillance, would grow under the Special Operations Concept.

Military chiefs believe Russia has been using its military intelligence arm, the GRU, effectively in Ukraine, Syria and Africa.

“Right now, you do nothing or you escalate,” one senior officer says. “We want to expand that competitive space.”

Adding:

At a London conference earlier this month, Chief of General Staff General Sir Mark Carleton-Smith referred to “authoritarian regimes” rather than mentioning Russia by name, noting they had managed to “exploit that hybrid space between those two increasingly redundant states of ‘peace’ and ‘war’”. 8

The quote drawn from Sir Mark Carleton-Smith’s speech delivered at RUSI is startling: “those increasingly redundant states of ‘peace’ and ‘war’”; and the tone is made all the more alarming due to the placement of quotation marks around the words ‘war’ and ‘peace’. Is this really what the Chief of General Staff intends when he talks about “the grey zone”: that ‘war’ and ‘peace’ now have purely relative meanings and signify nothing at all in any absolute sense? It is hard to imagine anything more Orwellian than this. Moreover, the leaked plans to redeploy Special Forces in preemptive action against other states are very likely in breach of the UN Charter, as the Russian embassy in London subsequently pointed out:

“In fact, this would mean that UK defense agencies are paving the way for removing the existing restrictions imposed by the international law and to claim the right to carry out military operations beyond the limits of self-defense, which constitutes a direct breach of the UN Charter,” the embassy said. “This would not just become a yet another step towards deliberately destroying the world order based on the international law, but also create major risks of those ‘hybrid’ operations evolving into full-fledged armed conflicts as a result of various coincidences and misunderstandings.” 9

*

Russia & cyber threats

Having returned from Montreux, National Security Correspondent for The New York Times, David E. Sanger, quickly put together a piece that helps us to better understand the interconnecting parts of another two of last summer’s Bilderberg key topics (Russia & Cyber Threats):

The United States is stepping-up digital incursions into Russia’s electric power grid in a warning to President Vladimir V. Putin and a demonstration of how the Trump administration is using new authorities to deploy cybertools more aggressively, current and former government officials said. 10

‘Current and former government officials said…’ Pompeo and Petraeus by any chance? Just taking a wild guess, of course, because there were others mingling in Montreaux with specialist knowledge who arguably better fit the bill as sources: take for instance, James H. Baker, the Director of the Office of Net Assessment; or alternatively, Matthew Daniels from New Space and Technology Projects, another whose post is under the aegis of the Office of the Secretary of Defense.

Just as plausibly, Sanger may have got the lowdown from Matthew Pottinger, Senior Director of the National Security Council (NSC) while partaking of some of the fine comestibles with NSC colleague and Director for China, Matthew Turpin. And if you’re wondering whether the colleagues at NSC were officially booked into adjacent rooms with a view, do please take note that:

“Thanks to the private nature of the Meeting, the participants take part as individuals rather than in any official capacity” (according to the Bilderberg website) 11

On the same basis we must therefore surmise that US Secretary of State, Mike Pompeo, was driven to this year’s summit by his own fleet of black limousines!

…Although attended by, as Charlie Skelton wryly observes, “a small army of secret service bodyguards, a bunch of State Dept staff and advisors, and the US Ambassador to Switzerland.”

Officially at least, the White House mustn’t have known two of their senior staffers were even going to Montreux!

David Sanger’s article continues:

Advocates of the more aggressive strategy said it was long overdue, after years of public warnings from the Department of Homeland Security and the F.B.I. that Russia has inserted malware that could sabotage American power plants, oil and gas pipelines, or water supplies in any future conflict with the United States.

But it also carries significant risk of escalating the daily digital Cold War between Washington and Moscow.

Adding:

Power grids have been a low-intensity battleground for years.

Since at least 2012, current and former officials say, the United States has put reconnaissance probes into the control systems of the Russian electric grid.

But now the American strategy has shifted more toward offense, officials say, with the placement of potentially crippling malware inside the Russian system at a depth and with an aggressiveness that had never been tried before. It is intended partly as a warning, and partly to be poised to conduct cyberstrikes if a major conflict broke out between Washington and Moscow.

What the article casually describes as “the daily digital Cold War”, if true, is actually nothing of the sort. The Cold War did not involve daily attacks on enemy infrastructure, which is part of the reason why thankfully it remained a cold war. Such an admission of US attacks is again in clear breach of international law, and yet coolly reported as mundane tit-for-tat exchanges justified on the back of entirely unsubstantiated rumours of Russian sabotage.

The article continues:

Mr. Trump issued new authorities to Cyber Command last summer, in a still-classified document known as National Security Presidential Memoranda 13, giving General Nakasone [head of United States Cyber Command] far more leeway to conduct offensive online operations without receiving presidential approval.

But the action inside the Russian electric grid appears to have been conducted under little-noticed new legal authorities, slipped into the military authorization bill passed by Congress last summer. The measure approved the routine conduct of “clandestine military activity” in cyberspace, to “deter, safeguard or defend against attacks or malicious cyberactivities against the United States.”

Under the law, those actions can now be authorized by the defense secretary without special presidential approval. […]

Two administration officials said they believed Mr. Trump had not been briefed in any detail about the steps to place “implants” — software code that can be used for surveillance or attack — inside the Russian grid.

Pentagon and intelligence officials described broad hesitation to go into detail with Mr. Trump about operations against Russia for concern over his reaction — and the possibility that he might countermand it or discuss it with foreign officials, as he did in 2017 when he mentioned a sensitive operation in Syria to the Russian foreign minister.

Which is the single aspect of Sanger’s article that we can know without doubt is true, since under section 1632 of the John S. McCain National Defense Authorization Act for the Fiscal Year 2019 (H.R. 5515) which passed the Senate on August 1st 2018, and which Trump subsequently signed into law on August 13th, he thereby removed the need for his own presidential authorisation to launch a cyberattack:

Affirming the authority of the Secretary of Defense to conduct military activities and operations in cyberspace. 12

It is a piece of legislation that conjures to mind the essential plot device in Dr Strangelove: a presidential pre-delegation of first-strike nuclear weapons use that grants permission to demented General Jack D. Ripper of Kubrick’s satire to personally launch his nuclear attack on the Soviet Union. 13

On the other hand, claims that Russia and America have already inserted viruses inside each other’s primary infrastructure demands evidence, and without any, the story clearly lacks credibility. So besides fearmongering, what would be the aim of putting out these purported ‘leaks’?

Well, it may help in the construction of a pretext for a genuine attack. A prospect which brings us to consider this admission (quoted again from Sanger’s NYT piece):

In a previous post, General Nakasone had been deeply involved in designing an operation code-named Nitro Zeus that amounted to a war plan to unplug Iran if the United States entered into hostilities with the country.

Given the current climate Iran would seem to be a more likely target then Russia – it is also the country most conspicuous by its absence from this year’s Bilderberg ‘key topics’. Did Mike Pompeo really spend the weekend at Bilderberg and not talk about Iran? When indeed was the last time the region of the Middle East failed to feature in Bilderberg’s published agenda? (I cannot remember a single occasion.)

In support of this alternative thesis, the article also contains this curious and conspicuous passage:

Both General Nakasone and Mr. Bolton, through spokesmen, declined to answer questions about the incursions into Russia’s grid. Officials at the National Security Council also declined to comment but said they had no national security concerns about the details of The New York Times’s reporting about the targeting of the Russian grid, perhaps an indication that some of the intrusions were intended to be noticed by the Russians.

Noticed by the Russians, the Chinese, the Venezuelans, and the Iranians too presumably… leaks of alleged “intrusions” that the public would know literally nothing whatsoever about were it not for the fact that the whole matter was conveniently brought to the attention of NYT-Bilderberg insider David E. Sanger by those “officials at the National Security Council”. Leaks much to the advantage of those with an interest to heighten tensions and incubate the new cold war.

Author of the piece David Sanger, on the list of Bilderberg participants as it was originally released on May 28th, has since gone missing.

By Friday June 1st, and with the conference well underway, his name was expunged.

As these screenshots show:

Like Mike Pompeo, he is another of last year’s Bilderberg disappeared.

*

A reconstructed world order

On the day of the anniversary of the D-Day landings, as Angela Merkel joined fellow western leaders to commemorate the sacrifice of the allied soldiers during the Second World War, two nations fighting alongside the victors were quietly snubbed. Russia and China each lost more than twenty million lives in their struggles against Germany and Japan respectively; the Russian Red Army doing more than all of the other allied forces to halt the march of the Nazis, battling alone against four-fifths of the Wehrmacht and forcing their thousand mile retreat from Moscow to Berlin.

However the isolation and the US-led encirclement of Russia and China has had the inevitable if unintended consequence of forging a closer alliance, and so as British, French, Canadian and American dignitaries laid wreaths on Normandy’s beaches, uninvited leaders Xi Jinping and Vladimir Putin were instead meeting in Moscow – it would be their thirtieth get-together in just the past six years – a tightening Eurasian partnership that has been relatively under-reported by the western press.

The following is taken a BBC news report:

The alliance between the two countries has intensified since both Moscow and Beijing feel alienated by Europe and especially the US.

Moscow’s relationship with the West turned sour when Russia was put under sanctions for its involvement in the Ukraine conflict five years ago. It has also been criticised for assisting the Assad regime in Syria in 2015.

China’s ties with the US have deteriorated since the Trump administration appeared to turn its back on globalisation in favour of economic national protectionism.

The two countries are currently embroiled in a trade war and tit-for-tat tariffs that intensive talks have so far failed to resolve.

With a shared sense of rejection from the West, Russia and China have hence moved closer together, both in economic and military cooperation, observers say.

The partnership has already seen an increase in trade, which grew by 25% in 2018 to hit a record $108bn (£85bn) according to the Kremlin. 14

There is no mention of the D-Day snub, of course, although the same piece does include a useful breakdown of the burgeoning economic ties between the two superpowers along with this observation:

During Xi’s visit to Moscow, the two sides have promised to deepen military and economic cooperation in the future.

Among the business deals signed there is one that stands out: Russian telecoms company MTS will allow controversial Chinese tech giant Huawei to develop a 5G network in Russia.

Click here to read the full BBC news report entitled “China’s Xi praises ‘best friend’ Putin during Russia visit”.

Such deals represent a direct response to, on the one hand, the West’s sanctions imposed on Russia ostensibly for its annexation of Crimea, and on the other, Trump’s imposition of tariffs on China. As the trade war against both counties is ratcheted up, once again it is inevitable that they are pushed into forming closer mutual ties. Moreover, Trump’s blustering has effectively backed America into a corner, as economist Michael Hudson explains:

The US is making impossible demands for economic surrender – that no country could accept. What appears on the surface to be only a trade war is really a full-fledged Cold War 2.0.

At stake is whether China will agree to do what Russia did in the 1990s: put a Yeltsin-like puppet of neoliberal planners in place to shift control of its economy from its government to the U.S. financial sector and its planners. So the fight really is over what kind of planning China and the rest of the world should have: by governments to raise prosperity, or by the financial sector to extract revenue and impose austerity. […]

The objective is to gain financial control of global resources and make trade “partners” pay interest, licensing fees and high prices for products in which the United States enjoys monopoly pricing “rights” for intellectual property. A trade war thus aims to make other countries dependent on U.S.-controlled food, oil, banking and finance, or high-technology goods whose disruption will cause austerity and suffering until the trade “partner” surrenders.

The best approach left open to China according to Hudson is to “stand aside and let the US self-destruct”, although he also advocates, albeit a little tongue-in-cheek, that Xi should nominate Trump for next year’s Nobel Peace Prize:

We know that he wants what his predecessor Barack Obama got. And doesn’t he deserve it more? After all, he is helping to bring Eurasia together, driving China and Russia into an alliance with neighboring countries, reaching out to Europe.

Trump may be too narcissistic to realize the irony here. Catalyzing Asian and European trade independence, financial independence, food independence and IT independence from the threat of U.S. sanctions will leave the U.S. isolated in the emerging multilateralism. 15

Click here to read Hudson’s full article entitled “Trump’s Trade Threats are really Cold War 2.0” published on June 13th.

*

On July 8th Ross Ashcroft, host of RT’s ‘Renegade Inc’, was joined by the journalist and Middle East based commentator Sharmine Narwani to discuss how Iran and the Middle East is reshaping the world order. Narwani explained how the battle over Syria (which she refers to as ‘Ground Zero’) has marked a turning point in the large-scale, two-decade long, neo-colonial ‘third world war’ raging across the Middle East, Central Asia and North Africa:

*

Additional: Iraq, Soleimani and the threat of petroyuan

The following is an extended extract from a recent article entitled “How a Hidden Parliamentary Session Revealed Trump’s True Motives in Iraq” by Whitney Webb published in Mint Press News:

[T]he use of the petrodollar has created a system whereby U.S. control of oil sales of the largest oil exporters is necessary, not just to buttress the dollar, but also to support its global military presence. Therefore, it is unsurprising that the issue of the U.S. troop presence in Iraq and the issue of Iraq’s push for oil independence against U.S. wishes have become intertwined. Notably, one of the architects of the petrodollar system and the man who infamously described U.S. soldiers as “dumb, stupid animals to be used as pawns in foreign policy”, former Secretary of State Henry Kissinger, has been advising Trump and informing his China policy since 2016.

This take was also expressed by economist Michael Hudson, who recently noted that U.S. access to oil, dollarization and U.S. military strategy are intricately interwoven and that Trump’s recent Iraq policy is intended “to escalate America’s presence in Iraq to keep control of the region’s oil reserves,” and, as Hudson says, “to back Saudi Arabia’s Wahabi troops (ISIS, Al Qaeda in Iraq, Al Nusra and other divisions of what are actually America’s foreign legion) to support U.S. control of Near Eastern oil as a buttress of the U.S. dollar.”

Hudson further asserts that it was Qassem Soleimani’s efforts to promote Iraq’s oil independence at the expense of U.S. imperial ambitions that served one of the key motives behind his assassination.

“America opposed General Suleimani above all because he was fighting against ISIS and other U.S.-backed terrorists in their attempt to break up Syria and replace Assad’s regime with a set of U.S.-compliant local leaders – the old British “divide and conquer” ploy. On occasion, Suleimani had cooperated with U.S. troops in fighting ISIS groups that got “out of line” meaning the U.S. party line. But every indication is that he was in Iraq to work with that government seeking to regain control of the oil fields that President Trump has bragged so loudly about grabbing. (emphasis added)”

Hudson adds that “…U.S. neocons feared Suleimani’s plan to help Iraq assert control of its oil and withstand the terrorist attacks supported by U.S. and Saudi’s on Iraq. That is what made his assassination an immediate drive.”

While other factors — such as pressure from U.S. allies such as Israel — also played a factor in the decision to kill Soleimani, the decision to assassinate him on Iraqi soil just hours before he was set to meet with Abdul-Mahdi in a diplomatic role suggests that the underlying tensions caused by Iraq’s push for oil independence and its oil deal with China did play a factor in the timing of his assassination. It also served as a threat to Abdul-Mahdi, who has claimed that the U.S. threatened to kill both him and his defense minister just weeks prior over tensions directly related to the push for independence of Iraq’s oil sector from the U.S.

It appears that the ever-present role of the petrodollar in guiding U.S. policy in the Middle East remains unchanged. The petrodollar has long been a driving factor behind the U.S.’ policy towards Iraq specifically, as one of the key triggers for the 2003 invasion of Iraq was Saddam Hussein’s decision to sell Iraqi oil in Euros opposed to dollars beginning in the year 2000. Just weeks before the invasion began, Hussein boasted that Iraq’s Euro-based oil revenue account was earning a higher interest rate than it would have been if it had continued to sell its oil in dollars, an apparent signal to other oil exporters that the petrodollar system was only really benefiting the United States at their own expense.

Beyond current efforts to stave off Iraq’s oil independence and keep its oil trade aligned with the U.S., the fact that the U.S. is now seeking to limit China’s ever-growing role in Iraq’s oil sector is also directly related to China’s publicly known efforts to create its own direct competitor to the petrodollar, the petroyuan.

Since 2017, China has made its plans for the petroyuan — a direct competitor to the petrodollar — no secret, particularly after China eclipsed the U.S. as the world’s largest importer of oil. As CNBC noted at the time:

“The new strategy is to enlist the energy markets’ help: Beijing may introduce a new way to price oil in coming months — but unlike the contracts based on the U.S. dollar that currently dominate global markets, this benchmark would use China’s own currency. If there’s widespread adoption, as the Chinese hope, then that will mark a step toward challenging the greenback’s status as the world’s most powerful currency….The plan is to price oil in yuan using a gold-backed futures contract in Shanghai, but the road will be long and arduous.”

If the U.S. continues on its current path and pushes Iraq further into the arms of China and other U.S. rival states, it goes without saying that Iraq — now a part of China’s Belt and Road Initiative — may soon favor a petroyuan system over a petrodollar system, particularly as the current U.S. administration threatens to hold Iraq’s central bank account hostage for pursuing policies Washington finds unfavorable.

It could also explain why President Trump is so concerned about China’s growing foothold in Iraq, since it risks causing not only the end of the U.S. military hegemony in the country but could also lead to major trouble for the petrodollar system and the U.S.’ position as a global financial power. Trump’s policy aimed at stopping China and Iraq’s growing ties is clearly having the opposite effect, showing that this administration’s “gangster diplomacy” only serves to make the alternatives offered by countries like China and Russia all the more attractive. 16

[Bold highlights as in the original]

Click here to read Whitney Webb’s full article published on January 17th.

*

1 Harold Pinter’s Nobel Lecture was pre-recorded, and shown on video on December 7, 2005, in Börssalen at the Swedish Academy in Stockholm. A complete transcript is available here: https://www.nobelprize.org/prizes/literature/2005/pinter/lecture/ 

2

Although the Trump administration vastly escalated the counter-terrorism war in Yemen, the war began under President Obama. Over his entire presidency, President Bush had conducted only a single strike in Yemen in 2002.

From an article entitled “Drone Strikes: Yemen” written by Peter Bergen, David Sterman and Melissa Salyk-Virk, published in New America https://www.newamerica.org/in-depth/americas-counterterrorism-wars/us-targeted-killing-program-yemen/ 

3 From a statement released by Save the Children entitled “Time to Bring Killers of Children in Yemen to Justice” published on September 3, 2019. https://www.savethechildren.net/news/statement-time-bring-killers-children-yemen-justice

4 From an article entitled “Come Home America: Sop Policing the World and Waging Endless Wars” written by John W. Whitehead, published in Counterpunch on January 13, 2020. https://www.counterpunch.org/2020/01/13/come-home-america-stop-policing-the-world-and-waging-endless-wars/ 

5 From an article entitled “U.S. House Passes Xinjiang Bill, Prompting Threat From China” written by Daniel Flatley, published in Bloomberg on December 3, 2019. https://www.bloomberg.com/news/articles/2019-12-03/u-s-house-ramps-up-china-tensions-with-uighur-human-rights-bill

6 From an article entitled “Ukrainian neo-Nazis flock to the Hong Kong protest movement” written by Ben Norton, published in The Grayzone on December 4, 2019. https://thegrayzone.com/2019/12/04/ukrainian-nazis-hong-kong-protests/ 

7 From an article entitled “China detaining millions of Uyghurs? Serious problems with claims by US-backed NGO and far-right researcher ‘led by God’ against Beijing” written by Ajit Singh and Max Blumenthal, published in The Grayzone on December 21, 2019. https://thegrayzone.com/2019/12/21/china-detaining-millions-uyghurs-problems-claims-us-ngo-researcher/

8 From an article entitled “UK’s special forces set for new Russia mission” written by Mark Urban, published in BBC news on June 13, 2019. https://www.bbc.co.uk/news/uk-48624982

9 From a report by Tass entitled “Russian embassy alarmed by London’s plans to shift focus of UK special forces” published on June 15, 2019. https://tass.com/world/1063933

10 From an article entitled “U.S. Escalates Online Attacks on Russia’s Power Grid” written by David E. Sanger and Nicole Perlroth, published in The New York Times on June 15, 2019. https://www.nytimes.com/2019/06/15/us/politics/trump-cyber-russia-grid.html

11

The Bilderberg Meeting is a forum for informal discussions about major issues. The meetings are held under the Chatham House Rule, which states that participants are free to use the information received, but neither the identity nor the affiliation of the speaker(s) nor any other participant may be revealed.

Thanks to the private nature of the Meeting, the participants take part as individuals rather than in any official capacity, and hence are not bound by the conventions of their office or by pre-agreed positions.

https://www.bilderbergmeetings.org/meetings/meeting-2019/press-release-2019

12 https://www.govtrack.us/congress/bills/115/hr5515/text

13

As declassified U.S. documents show, such pre-delegation existed beginning in 1956 when then U.S. President Dwight D. Eisenhower authorized U.S. air defenses to use nuclear weapons to defend against Soviet bomber forces in the event of an attack. This was further solidified with Eisenhower approving pre-delegation instructions for the use of nuclear weapons in 1959. Some form of nuclear pre-delegation existed at least until the end of the 1980s, as Bruce G. Blair has shown.

Daniel Ellsberg, a high-level nuclear war planner in the 1960s, notes in The Doomsday Machine: Confessions of a Nuclear War Planner that during the Cold War years, pre-delegation was seen as an integral part in the nuclear arms race with the Soviets for a simple reason: Its absence would undermine nuclear deterrence. Ellsberg writes: “The theatrical device represented by the president’s moment-by-moment day-and-night access to the ‘football’, with its supposedly unique authorization codes, has always been that: theater — essentially a hoax.”

From an article entitled “Dr. Strangelove and the Insane Reality of Nuclear Command-and-Control” written by Franz-Stefan Gady, published in The Diplomat on January 5, 2018. https://thediplomat.com/2018/01/dr-strangelove-and-the-insane-reality-of-nuclear-command-and-control/ 

14 From a report entitled “China’s Xi praises ‘best friend’ Putin during Russia visit” published by BBC news on June 6, 2019. https://www.bbc.co.uk/news/world-europe-48537663

15 From an article entitled “Trump’s Trade Threats are really Cold War 2.0” written by Michael Hudson posted on his own website on June 13, 2019. https://michael-hudson.com/2019/06/cold-war-2-0/

16 From an article entitled “How a Hidden Parliamentary Session Revealed Trump’s True Motives in Iraq”  written by Whitney Webb, published in Mint Press News on January 17, 2020. https://www.mintpressnews.com/hidden-parliamentary-session-revealed-trump-motives-iraq-china-oil/264155/

5 Comments

Filed under analysis & opinion, Charlie Skelton, China, Iran, Iraq, Russia, USA, Yemen

a depression by any other name: so what is anyone doing about it?

News that the British economy has now entered a dreaded “double-dip recession” is being greeted with surprise from the government, when it ought really to have surprised no-one. That the government’s own dismal failure is immediately reworked into the justification for imposing more ‘austerity measures’ and more quickly, is, again, something we might all have expected.

David Cameron apparently said that the figures were “very, very disappointing”, whilst adding only that the government would stick with its plans and do “everything we can” to generate growth.1 Everything, that is, aside from tackling the real cause of what is actually a worldwide economic depression, by, for instance, re-regulating our own financial markets and also criminally investigating the banks that are responsible for the crisis. And everything except for making significant investments in infrastructure projects and government services that would actually generate useful jobs at union wages.

Austerity isn’t simply cruel, from a national perspective it is suicidal. Just ask the Greeks… or the Italians, or the Irish, or the Spanish, or for that matter, the Argentinians and the Chileans.

Labour leader Ed Miliband said the figures were “catastrophic” and asked Mr Cameron what his excuse was.

“This is a recession made by him and the chancellor in Downing Street. It is his catastrophic economic policy that has landed us back in recession,” Mr Miliband said.

From the same BBC news article.

Fair enough, but where are Labour’s alternatives? During the last general election, the choice was between hardcore austerity meted out by the Torys, or softcore austerity from New Labour. How about no austerity! How about closing down the offshore tax-havens and thereby forcing the major corporations to stump up for the deficit. I don’t hear you, Mr Miliband.

The people are very slowly getting wind of what is really going on here. They increasingly see that the bankers have far too much power and influence over our elected representatives. Indeed, Goldman Sacks have blown their cover completely with the dictatorial appointments of Lucas Papademos and Mario Monti in Greece and Italy respectively, not to mention the more recent appointment of Mario Draghi as President of the European Central Bank (ECB). Yet there remains an almost total political vacuum in this country, with no mainstream party prepared even to question, let alone challenge, the steady ‘technocratic’ takeover of our societies.

So I see every reason to repeat an earlier plea for the urgent formation of a new political party. The party I envisage stands for human rights and social justice. It stands for the people and against the established elite. It says defiantly that enough is enough.

*

Economist Michael Hudson spoke about the reasons for the deepening financial crisis on yesterday’s Keiser Report on Russia Today.

In the interview with Max Keiser [part 2 of the show: 13 mins], he explains why the bailouts have failed and, in their current form, must continue to fail. He also points out how there are plenty of alternatives for solving this crisis other than the deathly hammer of ‘austerity’.

*

Here is a previous post, written last summer, which breaks down why ‘austerity measures’ will fail to rescue the economy, whilst presenting a few ideas for alternative measures that would genuinely help to turn the country around.

1 According to a BBC news article entitled “UK economy in double-dip recession”, published on April 25, 2012. http://www.bbc.co.uk/news/business-17836624

2 Comments

Filed under austerity measures, Britain

the Chicago School is dangerously wrong: I’m with Michael Hudson

On Thursday’s episode of the Keiser Report [March 8th], Max Keiser spoke with Dr. Michael Hudson from the University of Missouri, Kansas City. Hudson explained how neo-liberal economic theories have become dominant simply by virtue of the fact that they fail to accommodate any antithetical viewpoint:

We’re the unspeakable ones. We’re the people that liberals like [Paul] Krugman won’t talk about. We’re the people that the University of Chicago – in the magazines that it’s put its editors in – will not permit discussion. So basically the free-marketers are censors; they don’t believe in a free market of ideas. They believe in what they did in Chile. Remember, the first thing the Chicago Boys did in Chile was close down every economics department in the country except the one they controlled…

Hudson also explained to Keiser, how these ideas, which are most associated with Milton Friedman and the University of Chicago (more thoughts on Friedman are provided in an appended article at the bottom of this post), have quite literally inverted the original free market thinking of its founders Adam Smith and J.S. Mill:

The idea of ‘free market’ to classical economics was to bring prices in line with the actual technologically necessary costs of production… Monopolies were either to be regulated to keep their prices in line with the actual costs – like America regulates the bills that electrical utilities can charge – or, that most monopolies would be, as in Europe, kept in the public domain and operated as public utilities. And if there was something basic like education, or roads, these should be provided freely in order to minimise the economy’s cost of production, and make it more competitive. This was the whole philosophy of the industrial revolution, and it was the ‘free market’ idea that the Classical economists had. […]

But [the modern] idea of a ‘free market’ was free for predators. Free for monopolists. Free for landlords to gouge whatever rents they could get, and to free themselves from taxation, so that the government had to tax labour and to tax industry. And the result is that the American economy today under the so-called ‘free market’ has such a high cost of living, and a high cost of production, that labour can’t compete internationally. That’s why America’s balance of trade has moved so far into deficit.

So ‘free market’ is what is killing the American economy and it’s not free at all… not the kind of ‘free market’ that Adam Smith talked about.

You can read more about Michael Hudson’s economic thinking along with the views of his fellows at the University of Missouri-Kansas City (including an insider perspective from former financial regulator William Black) at the ‘new economic perspectives’ blog http://www.neweconomicperspectives.org/.

*

Milton Friedman was professor at the University of Chicago. There he helped to found the acclaimed Chicago School of Economics – a group that produced a number of Nobel Prize winners. Friedman himself received the Nobel Prize for Economics in 1976, whilst The Economist once described him as “the most influential economist of the second-half of the twentieth century.”1

It was the economic ideology formulated and promulgated by Friedman and his Chicago School, with its emphasis on market deregulation and free trade, that exercised such great influence during the eighties with the ‘hands off’ economic policies of Reagan and Thatcher. Indeed the legacy of those years has persisted throughout the administrations led by Major, then Blair and Brown, and now Cameron and Clegg (Quelle différence?), and today’s political consensus offers little alternative but the full acceptance of Friedman’s old deal, with economic differences between New Labour and Conservative being merely a matter of degrees. Friedman seems to have won, for the time being at least. So what exactly is the rationale behind his winning formula?

Broadly he came to his theories from two angles. Firstly, he distanced himself from the sorts of social reformers who saw state control as a necessary element of modern civilisation. Regarding welfare legislation, such as minimum wage laws as self-defeating (because they would supposedly prevent those without skills from finding gainful employment), he was equally dismissive of the meddling trade unions, and sought ultimately to banish all social security programmes.

Whereas previously, economists like Keynes, and also Adam Smith, had got themselves all tangled up on what sorts of policies were better or worse for the general welfare, Friedman carefully side-stepped such messy complications. As far as Friedman was concerned, government is mostly a stifling and wasteful inconvenience (which, in fairness, is all too often the case). But here Friedman goes to extremes: left to its own devices, he says, all government must undoubtedly veer toward some form of tyranny. The best thing then is to clip its wings completely. Instead of government making decisions, the people should be left to choose for themselves. But how? Well, by forcing government to give way to the market.

Secondly, and in common with many cool-headed intellectuals, Friedman regarded human beings with a deeply felt suspicion. “Mankind is selfish and greedy,” he said in a television interview. But when asked by the interviewer whether in admitting this, he’s not inadvertently making a good case for more control rather than less, he quickly dismissed such Hobbesian objections, replying: “Therefore, we have to put power into the hands of other selfish and greedy men.”2 It’s an odd and revealing answer for one who purported to be a liberal rather than a conservative, and who always wrapped himself in the flag of Freedom.

So here is Milton Friedman, the high evangelist of a radical lassez-faire “limited government”, fast talking and slick, and preaching ever less intervention, less regulation, and less central control. Less is more. Less interference makes more profits, and more profits equates with more goods, and goods are of course, by definition, good.

Work hard, make money: this was the heart of his doctrine – and leave it to the individual to make all the right choices. Trying to do good with “other people’s money” is simply fallacy – Friedman liked the term “other people’s money” (though nowadays he’d almost undoubtedly say “taxpayer’s money”; same difference):

“If I want to do good with other people’s money I’d first have to take it away from them. That means that the welfare state philosophy of doing good with other people’s money, at its very bottom, is a philosophy of violence and coercion. It’s against freedom, because I have to use force to get the money.” [about 11:30 min into part 1]

Phew, it certainly sounds bad when you put it like that. All that collecting of taxes and then divvying the money out for housing, schools, hospitals and caring for the old folk, sure is some serious violation of our inalienable human rights. Friedman, characteristically, takes such reasoning to its logical and ultimate extremes. Indeed, he is actually prepared to estimate just how many people might reasonably be done-away-with to ensure that we remain free from the sorts of deplorable ‘violence and coersion’ that are all too familiar when it comes to tax collection:

“But let’s look at that a little farther,” he says,”Suppose that five percent of the elderly would not be able to provide for themselves. Does it make sense to impose a programme on a hundred percent of the people in order to do something about five percent? Does that really make sense? You see, that’s the great defect in this line of thinking – ” [about 1:30 min into part 2]

Although why stop at five percent, when it makes economic sense to sacrifice a few more of the useless-eaters…

As for the new role of economists themselves, and with the tricky problem of people dismissed, their attention can be properly focused on complex theories of monetary policy: intricate models of how money and the markets function in and by themselves. Here is enough to be getting on with, says Friedman, and the new economists agree. Why? No doubt in part, because it grants them a legitimacy that previously only attached to the expertise of the scientist. It offers an intellectual purity.

But how can anyone objectively divorce economics from society (even if they would choose to), and draw such clear divisions between money and its effects on people? Economics, if it is a science (and there are extremely good grounds for saying that it isn’t), might conceivably be a science like psychology, but it can never be anything like, say, physics. The reason being that money is inherently a people thing; a human construct, bearing only a superficial resemblance to other kinds of natural phenomenon, which it most definitely isn’t. Nor are markets freely-floating entities immune to all human frailty, but composed of analysts and traders: people who are driven at least as much by fear as by good reason. Constantly jittery; every now and then ‘the markets’ totally crap their pants. Yet Friedman desperately wants to cut all this out of his equation, whilst insisting that all other economists eventually join him in his perfect economic bubble.

And following Friedman’s prescription has led us to a perfect economic bubble. A debt bubble that has swollen to such an extent that it currently exceeds the value of everything else on earth.3 We should not be surprised. This is what’s likely to happen when you entirely decouple economics from social needs. When money becomes the main ‘product’ in the world. When high frequency trading involving the use of computer algorithms forces commodity and share prices to rise and fall in fractions of second, whilst outside in the real world nothing about those commodities or businesses has altered in anyway – the values being driven instead by feedback loops of speculation. When markets are also rigged by insider knowledge – an anathema to the ‘free market’ and yet, thanks to deregulation, easier than ever. And when ‘the markets’ in themselves are bloated by the never-ending creation of ‘financial products’, quite apart from any judgment of how all these new paper contracts might blight the real economy. No value judgments are allowed. No distinction between profits earned from the supply of real goods and services as opposed to profits made by profiteers and financial predation. Money making more and more money being an inherent good.

In truth, Friedman was never really a liberal, but a libertarian of sorts (and saying this does a disservice to the better half of libertarianism). The neo-con intellectual apologist Francis Fukuyama is another libertarian of a similar sort, and Fukuyama undoubtedly derives a great deal from Friedman. Liberty, in the eyes of both men, is inextricably tied to the freedom to buy and sell. Indeed, Friedman once claimed that: “underlying most arguments against the free market is a lack of belief in freedom itself.”4

In defence of this extremist position, Friedman has often pointed to history. History, he tells us, has long been constructed along collectivist principles, which is indeed the normal state of humankind. The trouble is that collectivism doesn’t work, and so, although the system of minimal collective intervention may appear, at least on the surface, to be crueller and more selfish, the results it yields are for the betterment of most, if not all. We should judge much better by the consequences rather than from the objectives, he always insisted, looking at the ends rather than the means. Okay then let’s do just that. And let’s be fair here, and judge Friedman on the basis of his most acclaimed success.

On September 11th of 1973 the democratically elected government of Salvador Allende was overthrown by a CIA backed military coup and replaced by a junta government led by Augusto Pinochet. What immediately followed is common knowledge. Imprisonment of political opponents, torture, and the “disappearance” of thousands of innocent victims. The record of atrocities committed by the Pinochet regime is well documented. But perhaps what is less well remembered is the parallel economic measures imposed by the so-called Chicago Boys during Pinochet’s reign of terror.

Sweeping deregulatory reforms that involved the abolition of the minimum wage, the removal of food subsidies, the suppression of trade union activity, and the privatisation of just about everything in sight. The pension system, the banks and assets of state-ownership, all greedily seized and sold off. This kind of “shock treatment”, as Friedman unflinchingly referred to it, resulted in a real wage drop of more than forty percent, a doubling in levels of poverty, and a staggering one in five of the working population (a five-fold increase within a decade) forced into desperate unemployment and left to fend for themselves .5 Yet Friedman regarded all of this as merely the price of success, and described the transformation from Allende’s democratic socialism to Pinochet’s hard-line, totalitarian capitalism as “the miracle of Chile”. Individual suffering was simply a small price for Friedman’s greater ‘liberty’, and back in 1975, in the discussion with Heffner, he staked out that position too, albeit a little clumsily:

“I want people to take thought about their condition and to recognize that the maintenance of a free society is a very difficult and complicated thing. And it requires a self-denying ordinance of the most extreme kind. It requires a willingness to put up with temporary evils on the basis of the subtle and sophisticated understanding that if you step in to try to do them [do what? the temporary evils?], you not only may make them – [hesitation as he corrects himself] – to do something about them – you not only may make them worse, but you will spread your tentacles and get bad results elsewhere.” [about 6:00 min into part 2]

Milton Friedman spread his own tentacles pretty much everywhere, and the world has long been poisoned by his ‘free market’ phoney liberalism. Friedman’s Chicago School branch of economics having not merely served as justification for the continued exploitation of workers, but also, and by virtue of its mantra for deregulation, encouraged the rampant, cancerous growth of a crony capitalist elite. Fundamentalist ‘free market’ thinking isn’t just cruel, it has been calamitous. Milton Friedman, its high priest, was so very dangerously wrong.

1 From an article entitled “Milton Friedman, a giant among economists” published November 23rd, 2006, The Economist.

2 All otherwise uncredited quotes in this section have been drawn from an interview with Richard D. Heffner, broadcast on Sunday December 7th, 1975 as part of the TV series “Open Mind” , produced by WPIX, Channel 11, New York, in cooperation with Saturday Review (based on a transcription found at http://www.theopenmind.tv/tom/searcharchive_episode_transcript.asp?id=494).

Friedman’s full answer to Heffner’s question is this: “Therefore, we have to put power into the hands of other selfish and greedy men. Now I want to apologize for what I said. The great bulk of mankind. There are always conspicuous exceptions, not everybody. And also for each person there is an exception. People are selfish and greedy in one aspect of their activity. They are unselfish and generous in another.” [about 8:00 min into part 2]

3 The underlying cause of the current crisis is the worldwide trade in “derivatives”. It is currently estimated that in the order of a quadrillion US dollars (yes, that’s with a qu-) has been staked on derivations of various kinds. We can compare this with the entire world GDP which turns out to be a mere 60 trillion US dollars [According to IMF economic database for October 2010, World GDP is $61,963.429 billion (US dollars)]. One quadrillion being more than twenty times larger. Or we might compare it against the estimated monetary wealth of the whole world: about $75 trillion in real estate, and a further $100 trillion in world stock and bonds. So one quadrillion is a number exceeding even the absolute monetary value of the entire world! Warren Buffett once described derivatives as “financial weapons of mass destruction”, and he should know because he trades in them.

4 “A major source of objection to a free economy is precisely that it … gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself.” Taken from chapter 1 of “The Relation Between Economic Freedom and Political Freedom“, 2002 edition, page 15.

5 From 1973-83 unemployment rose from 4.3% to a staggering 22%, whilst by all measures, the average worker was worse off in 1989 than in 1970, labor’s share of national income having fallen from 52.3 to 30.7 percent. Statistics courtesy of James Petras and Fernando Ignacio Leiva with Henry Veltmeyer, from “Democracy and Poverty in Chile: The Limits to Electoral Politics“, Boulder: Westview Press, 1994.

Leave a comment

Filed under analysis & opinion, Britain, Chile, financial derivatives, Max Keiser, neo-liberalism, USA

Greece is a dress rehearsal for US says top economist

“Greece’s [situation] should be viewed as a dress rehearsal for the United States. It’s exactly the same thing. Greece didn’t really get any bailout funds at all. All of the bailout funds were given by European creditor governments to the banks that held the Greek bonds. And Greece was told, “Well, there’s a 50 billion euro loss on your bonds that have gone down. You have to sell off and privatize $50 billion of your land and property in the public domain.” So every euro that the bankers lose, Greece has to sell off. And the idea is to carve up the government and privatize it, just like Illinois and Chicago and Wisconsin and California are doing. So it’s a dress rehearsal for what’s happening here.”

According to Michael Hudson, President of the Institute for the Study of Long-Term Economic Trends, distinguished Professor of Economics at the University of Missouri, Kansas City, and author of the book Super Imperialism: The Economic Strategy of American Empire.

As part of a deal to raise the federal debt ceiling before the August 2nd deadline, President Obama and Republican House Speaker John Boehner are close to agreeing a $3 trillion deficit-reduction package. But the Obama-Boehner agreement, which reneges on Obama’s election pledge not to cut Social Security and Medicare benefits, is coming under fire from both congressional Democrats and Republicans. Speaking on Democracy Now! on Friday, Hudson explained how the entire debt ceiling crisis is fake:

“The question is, if they can create a $13 trillion on a computer keyboard, taking over Fannie Mae and Freddie Mac, and the Federal Reserve can simply give this money, why can’t they, over 50 years, pay the trillion dollars for the Medicare and the Social Security? It’s—obviously, it’s a charade…

“What they’re pushing for really isn’t a default on the debt. They’re pushing for a crisis to let Mr. Obama rush through the Republican plan. Now, in order for him to do it, the Republicans have to play good cop, bad cop. They have to have the Tea Party move so far to the right, take a so crazy a position, that Mr. Obama seems reasonable by comparison. And, of course, he is not reasonable. He’s a Wall Street Democrat, which we used to call Republicans…

“As Mr. Obama’s Deficit Reduction Commission said, we have to get rid of Medicare, we have to get rid of Social Security, put the Social Security funds into the stock market, create a stock market boom, create a new business for his—for Wall Street. He believes in trickle-down economics.”

Click here to watch and to read a full transcript of the interview

Earlier in the month, giving an interview on the same subject on The Real News Network, Hudson explained why the protests in Greece and Spain are still important:

“What [the protests are] doing is laying a legal foundation for simply repudiating the debt, because if they can now argue, say, look, this debt that you say we owe and have to pay off by privatizing our assets, you knew that we rioted, you knew the whole population was there, you knew that the people were asking for a vote. It doesn’t matter if the Socialist Party people who’d sold out, they’re corrupt. The people are not behind this loan. And when we repudiate the debt, you can do one of two things. Either you can kick us out of the common market, the European Union, and you can kick Spain and Portugal out. If you do, we’re going to form our own union, and this union is not going to pay the debts to you, because no country can be expected to push itself into a generation of depression in order to pay creditors who simply create all this credit to lend to governments on computer keyboards.”

Hudson says that the important thing to realize is the government doesn’t borrow money it creates it, so the whole issue of whether the US has a debt problem is largely fictitious. Here’s a different interview Hudson gave to Russia Today six months earlier:

Leave a comment

Filed under analysis & opinion, austerity measures, campaigns & events, Greece, neo-liberalism, Uncategorized, USA