Public Banking: An Idea Whose Time Has Come

Bank of North Dakota, Bismarck (new building inaugurated in 2008).

Editor’s Note: A public bank for the entire United States. Ah, what a refreshing idea, or, as the Victorians might say, “What a capital idea!”  We certainly think this is a solid concept, a motion whose time has certainly come.  In fact, we thought the taxpayer bailout of the Wall Street investment houses, insurance gamblers, and other players caught in the subprime scandal could have been avoided entirely by simply creating such a bank, a National Reconstruction Bank with precisely the funds wasted on these crooks. But the problem in America for at least 150 years now has always been not a shortage of good ideas but the political will to implement them, as it is this society’s mammoth corrupt vested interests at the top that run the nation, through their shills at all levels, and not honest representatives of the public weal.

We were reminded of this central truth recently, with the healthcare reform battle.  Besides introducing a nationalized banking system, even one that could run parallel to the private system to placate the banksters in its initial phases, what could be more desperately needed than a socialized healthcare system eliminating from the middle one of the most widely hated and wasteful capitalist industries in the land, one that not only torments countless private individuals every single day but millions of small businesses as well? And yet, it failed to pass, a failure assured from the start by the betrayal of the party in control, in this case the Democrats. So, the bottom line remains the same: the problem is political, not intellectual.  With that in mind, we welcome tactical and strategic ideas to remove this hurdle.—Patrice Greanville

By Stephen Lendman

The 1913 Federal Reserve Act let powerful bankers usurp America’s money system in violation of the Constitution’s Article I, Section 8, giving only Congress the power to “coin Money (and) regulate the Value thereof….” Thereafter, powerful bankers victimized working Americans, using money, credit and debt for private self-enrichment by bankrolling and colluding with Congress and administrations to implement laws favoring them.

As a result, decades of deregulation, outsourcing, economic financialization, and casino capitalism followed, eroding purchasing power, producing asset bubbles, record budget and national debt levels, and depression-sized unemployment far higher than reported numbers, manipulated to look better.

After financial crisis erupted in late 2007, harder than ever Main Street hard times followed, getting worse, not better. As a result, high levels of personal and business bankruptcies resulted. Millions of homes have been lost. Record numbers of Americans are impoverished. An unprecedented wealth gap grows steadily. America’s unstable economy lurches from one crisis to another, the current one miring Main Street in depression, still in its early stages.

Recovery is pure illusion. Today’s contagion spread out-of-control globally. No one’s sure how to contain it, so Wall Street got trillions of dollars in a desperate attempt to socialize losses, privatize profits, and pump life back into a corpse through grand theft by sucking public wealth to the financial sector, other corporate favorites, and America’s aristocracy already with too much.

Speculation and debt need more of it to prosper, but ultimately it’s a losing game. The greater the expansion, the harder it falls, especially when credit contraction persists. Job creation is moribund. Industrial America keeps imploding. High-paying jobs are exported. Economic prospects are eroding. Workers are exploited for greater corporate profits, and no one’s sure how to revive stable, sustainable long-term growth.

Privatized money control is the problem, representing democracy’s greatest threat. Regaining public control can restore it. The time for launching public banking across America is now when more than ever it’s needed.

Cause and Effect

Economist Michael Hudson explains that “debt leveraging” caused America’s economic collapse, so piling on more exacerbates conditions, especially the way it’s done:

— by bailing out giant Wall Street banks;
— letting them used trillions in public funds for more speculation, big bonuses, and acquisitions, not direct lending to revive growth;
— not acting as a lender of last resort to facilitate private investment to create jobs, turn around a sick economy, and stimulate demand; and
— letting federal debt unproductively skyrocket to stratospheric levels, affirming Adam Smith’s dictum that no country ever repaid theirs, especially the kind banking cartels create in lieu of workable alternatives not taken.

Key among them is:

— nationalizing the Fed; returning money creation power to Congress;
— abolishing Wall Street’s franchise;
— breaking up giant banks;
— liquidating insolvent too-big-to-fail ones; and
— replacing them with publicly run banks, providing low-interest loans to businesses, farmers, communities, households, students, and other worthy borrowers as a way to revive and sustain inflation-free prosperity. It’s no pipe dream. It’s real. It happened before and can again. Short of that, according to Hudson:

“debt service will (keep) crowd(ing) out spending on goods and services and there will be no recovery. Debt deflation will drag the economy down while assets are transferred further into the hands of the wealthiest 10% of the population (mainly the top 1%), operating via the financial sector.”

Eventually the economy will collapse, but not Wall Street, profiting hugely with public handouts – aided and abetted by corrupted public officials, turning America into what Hudson calls a “zombie economy” and banana republic.

Workable Alternatives Can Prevent It

Ellen Brown’s extraordinary book titled, “Web of Debt” explains how private money power trapped Americans in debt and how they can break free. At issue is private v. publicly created credit, Brown saying:

“Readily available credit made America ‘the land of opportunity’ ever since the days of the American colonists. What transformed this credit system into a Ponzi scheme, that must continually be propped up with bailout money, is that the credit power has been turned over to private bankers who always require more money back than they create” because they charge high interest rates for maximum profits.

In contrast, when federal, state or local governments lend their own money, profit isn’t at issue so rates can be low and affordable to businesses, farmers, and private individuals. Moreover, for federal and municipality needs, government-issued credit is interest-free.

Brown explained that “fractional reserve banking” dates from the 17th century, done then mainly in gold and silver coins. Early bankers soon realized it was simpler to use deposit receipts (called notes) as a means of payment so they began creating money by making loans through promises to pay, and more could be issued than the amount of coins on hand as only enough were needed to service redemptions – today’s idea of a reserve requirement.

What began earlier as notes, today are accounting entries that literally create money out of thin air. Moreover, it works the same for government as for privately-owned banks, except as publicly-run institutions, their mandate greatly differs:

— they don’t have to earn profits;
— they’re not beholden to Wall Street or shareholders; and
— only the state, community, (or federal government’s) creditworthiness matters. So far, in over 230 years, no state ever went out of business, and, except for Arkansas during the Great Depression, none ever defaulted, even when poorly governed.

Further, they can lend to themselves and municipalities interest-free, as well as to businesses, farmers, and individuals at low affordable rates to create sustainable, inflation-free growth. Moreover, the more often loans roll over, the more debt-free money is created – inflation-free if used productively for growth, not speculation, big bonuses and other excesses.

In fact, as long as new money produces goods and services, inflation can’t occur. Only imbalances cause problems – “when ‘demand’ (money) exceeds ‘supply’ (goods and services).” Price stability is assured when both increase proportionally, and that’s exactly how it worked in colonial America and under Lincoln during the Civil War.

Colonial America’s success is explained below. An earlier chapter discussed Lincoln’s achievements, reviewed again below. Brown’s “Web of Debt” also covered early 20th century Australia under its publicly-run Commonwealth Bank. Like others, it created money, made loans, and collected interest at a fraction of what private bankers charge. It worked well enough, in fact, for the country to have one of the highest global living standards at the time.

However, once private bankers took over, Australia became heavily indebted, its living standard falling precipitously. It showed benefits possible by government created credit compared to privatized banking power destructiveness – Australia one of several examples of what works best. “Web of Debt” explained them, including:

— colonial America:
— Lincoln’s achievements;
—- the Middle Ages, falsely portrayed as a backward and impoverishing era saved only by industrial capitalism; in fact, under its banker-free tally system, it prospered for hundreds of years;
— China did for thousands of years before the privatized banking, and today because Beijing directs The People’s Bank of China (its semi-independent central bank) to grow the nation’s economy and create millions of jobs for its burgeoning population; and
— Venezuela under its public service mandated quasi-public/private system, a topic a previous chapter explained about a far more stable/responsible system than America’s predatory Fed-run one.

Imagine the possibilities under public banks:

— federal, state and local debt could be substantially reduced or eliminated;
— so could personal and payroll taxes federal taxes;
— America’s manufacturing base could be rebuilt;
— social programs could be funded inflation-free;
— vital infrastructure projects could be undertaken on a scale never before imagined, including cleaning up the environment and developing alternate, sustainable, clean, safe, affordable energy sources;
— millions of new good-paying jobs could be created, ending unemployment for everyone able work; and for those willing but unable, aid could be provided;
— foreclosures would end, and the dream of home ownership would be reachable for everyone because mortgages would be plentiful, cheap, and not designed to scam the unwary;
— booms and busts would end;
— destructive currency devaluations and economic warfare for private gain no longer would threaten;
— private pensions, savings, and investments would be secure;
— Social Security, Medicare, and Medicaid would be secure in perpetuity;
— Washington, the states and local communities could produce comfortable surpluses; and
— sustained prosperity overall would result, providing everyone affordable or free healthcare, education, and other essential social benefits.

It’s not pie-in-the-sky. In colonial America, it worked impressively, first Massachusetts in 1691 with its own paper money called scrip, backed by the government’s full faith and credit. Other colonies followed, freeing them from British banks, letting their economies prosper, inflation-free, with no taxation for 25 years, paying no interest to bankers. The secret wasn’t issuing too much. It was recycling money into local economies for productive growth. Wherever it’s been tried, it’s work impressively. Brown’s “Web of Debt” explained it.

Lincoln did the same thing with government-created money, interest free. What followed turned America into an industrial giant by launching the steel industry, a continental railroad system, and new era of farm machinery and cheap tools. Free education was also established. The Homestead Act gave settlers ownership rights and encouraged land development. Government supported science.

Mass production methods were standardized. Labor productivity rose exponentially during America’s greatest growth period before the Fed’s 1913 creation changed everything.

Now’s the time to change back by replacing their franchise with public banking, giving federal, state and local governments their own money system, interest-free to grow their areas and the nation sustainably and impressively, interest-free with low or no taxes. America’s lacked it for the last century.

Doing so would revolutionize the country en route perhaps to ending predatory capitalism entirely, the ultimate aim, replacing a destructive system with an equitable one, serving everyone fairly.

More Evidence Why It’s Needed

A new US census report offers more evidence why, saying one-fourth of US counties are dying (760 of 3,142), meaning they’re showing more deaths than births. Why is at issue – because of the deepening economic crisis causing record high unemployment, home foreclosures, and human misery. According to Professor Kenneth Johnson:

“The downturn in the US economy is only exacerbating the problem. In some cases, the only thing that can pull an area out is an influx of young Hispanic immigrants or new economic development,” not forthcoming.

University of Albany senior fellow James Follain said, “The housing (market decline) is creating a new type of ghost cities” because of waves of foreclosures in overbuilt urban areas. Recovery will be very slow, he said, because of fiscal restraint when stimulus is badly needed.

Instead of curing the patient, we’re killing it because giant banks control money, and government is colluding with them to wreck Main Stream America to create assets they can buy cheap at the expense of working households losing out. That’s how private money power works – for them against the common good. What more incentive is there for returning it to public hands where it belongs, serving everyone equitably and fairly.

Replicating a Workable Model

One state alone has it, North Dakota establishing the Bank of North Dakota (BND) in 1919. Access its web site at:

http://www.banknd.nd.gov/

In contrast to privatized banks, it’s not insured by the Federal Deposit Insurance Corporation (FDIC) for good reason. Instead, its deposits “are guaranteed by the full faith and credit of the State of North Dakota,” proved trustworthy after over 90 years of sound money practices, unlike banks trapped by Fed control, wrecking many over decades.

Its deposit base is also unique, comprised mainly from state residents and funds of state institutions. However, other deposits are accepted from any private or public source. As mandated in 1919, North Dakota’s Industrial Commission oversees BND. Its members include the governor as chairman, attorney general and commissioner of agriculture. The bank also has a seven-member governor appointed advisory board, knowledgeable in banking and finance.

On December 8, 2010, Governor Jack Dalrymple’s 2011 – 2013 Budget Address highlighted a performance record other states would envy, struggling to cope with out-of-control deficits. In contrast, North Dakota had surpluses throughout the economic crisis. As a result, it’s budgeting “unprecedented funding for transportation infrastructure, housing, water supply and water control projects and other infrastructure investments throughout the state.”

Greater funding will also go for K -12 and higher education, economic development, agricultural research, health and human services, as well as quality of life enhancements, public worker pay increases, besides more for tax relief for state residents, amounting to $900 million in the 2011-2013 bienniums.

Moreover, strong reserves will be grown and maintained. Instead of cutting back like most other states, North Dakota is expanding and passing on benefits to residents. In December 2010, it also had the nation’s lowest unemployment rate at 3.3%. BNB deserves the credit.

On January 4, Dalrymple delivered his State of the State Address, saying:

“While other states (struggle with weak economies), we in North Dakota are in a position of strength and can use our surplus funds to meet the needs of the state” adequately, despite $174 million less federal human services aid than last year.

Nonetheless, North Dakota is prosperous. “You can see it in the progress of our industries, our main streets, in our schools, and in our overall economic growth. Our progress is getting national attention. It’s attracting people from other states and it’s allowing (our) people to stay close to home.”

North Dakota’s impressive record includes:

— large budget surpluses;
— merchandise exports nearly doubled to $2 billion in the last five years alone;
— 40,000 new jobs added in the last decade while the nation lost them;
— the country’s lowest unemployment rate at 3.3%; and
— much more revealing progress and prosperity, Dalrymple saying he’s “fortunate today to be able to say with complete confidence that the state of our state is strong and growing stronger!” As a result, more impressive things are planned because North Dakota has resources to implement them, while other states cut back.

On February 20, 2011 the Bismark Tribune reported:

“North Dakota’s economy has been (producing) black gold, a $1 billion budget surplus, the nation’s lowest unemployment,” even though some residents need help. “It means there are still people, and families, who face a variety of challenges.” As a result, state and local governments “have been proactive about” helping them get benefits they need and deserve. The state has plenty of resources to do it.

An October 12, 2010 Before It’s News headline said:

“North Dakota Has A One Billion Dollar Budget Surplus this year and is looking for ways to spend it – Maine has a billion-dollar deficit and is looking for ways to fund it.”

Sub head: “North Dakota is the only state with a surplus. It is also adding jobs when other states are losing them. Why is this not headline news?”

It’s not only solvent, it’s thriving with impressive 43% personal income growth besides 34% more in total wages.

According to Brown, it’s because BND has been a “credit machine,” for over 90 years, delivering “sound financial services that promote agriculture, commerce and industry,” something no other state can match because they don’t have state-owned banks.

With one, BND “create(s) ‘credit’ with accounting entries on (its) books” through fractional reserve banking that multiplies each deposited amount magically about tenfold in the form of loans or computer-generated funds. As a result, the bank can re-lend many times over, and the more deposits, the greater amount of it for sustained, productive growth. If all states owned public banks, they’d be as prosperous as North Dakota and be able to rebate taxes and expand public services, not extract more or cut them.

Brown explains that the BND:

“chiefly acts as a central bank, with functions similar to those of a branch of the Federal Reserve,” that’s neither federal or has reserves as it’s owned by major private banks in each of the 12 Fed districts, New York by far the most dominant with Wall Street’s majority control and a Fed chairman doing its bidding.

In contrast, BND is a public bank, 100% owned by the state, operating in the public interest and those of the state. It “avoids rivalry with private banks by partnering with them.” Local banks do most lending. “The BND then comes in to participate in the loan, share risk, buy down the interest rate and buy up loans, thereby freeing up banks to lend more” as part of a continuing prosperity-creating virtuous circle. One of its functions “is to provide a secondary market for real estate loans, which it buys from local banks. Its residential loan portfolio is now $500 to $600 billion” in a state with around 700,000 people and thriving.

Its function in the property market helped it “avoid the credit crisis that afflicted Wall Street when the secondary market for loans collapsed in late 2007 and helped it reduce its foreclosure rate….(Its other services) include guarantees for entrepreneurial startups and student loans, the purchase of municipal bonds from public institutions, and a well-funded disaster loan program.” When the state didn’t meet its budget “a few years ago, the BND met the shortfall.”

Year after year it works, freeing North Dakota from today’s credit crisis and worst of the economic downturn. It’s a win-win for the state, its agriculture, commerce, industry, entrepreneurial startups, students, homebuyers needing loans, and virtually anyone in the state able to qualify.

 

In sum, state-owned banks have “enormous advantages over smaller private institutions….Their asset bases are not marred by oversized salaries and bonuses, they have no shareholders” demanding high returns, and they don’t speculate in derivatives or other high-risk investments. As a result, BND is healthy with a 25% return on equity, paying “a hefty dividend to the state projected at over $60 million in 2009” and well over five times that amount in the last decade, so it begs the question why other states don’t operate the same way. With them, they might be struggling the way nearly all of them are today, especially major ones like California, New York, Michigan and Illinois.

Growing State Interest in Public Banks

On March 25, 2011, Ellen Brown’s article headlined, “A Choice for States: Banks, Not Budget Crises,” highlighting the growing interest in state-owned banks, including new initiatives exploring the idea – at least 12 so far with pending bills or feasibility studies to determine their potential. They include Oregon, Washington, Maryland, Illinois, Virginia, Massachusetts, Louisiana, California, Arizona, Maine, Vermont and Hawaii, considering public bank options like North Dakota, America’s most prosperous state with one.

At issue is while “Wall Street is (thriving), local banks are floundering, credit for small businesses and consumers remains tight, and local governments are teetering on bankruptcy.” Congress is even considering new legislation to let states do it as a way to avoid pension and other obligations. Yet, according to what’s known, the Fed gave giant banks $12.3 trillion dollars, providing nothing for strapped states, local communities, and beleaguered households struggling to stay afloat.

North Dakota avoids economic hardships. So can other states and communities with publicly owned banks. It’s not rocket science. It’s simple. That’s its beauty, and what works for North Dakota can work anywhere. Size isn’t the issue. Policy is.

As a result, momentum’s slowly building for change, in Illinois, for example, on February 5, 2011 where Rep. Mary Flowers introduced the Community Bank of Illinois Act. It:

“Provides that the Department of Financial and Professional Regulation shall operate the Community Bank of Illinois. Specifies the authority of the advisory board of directors to the Bank. Provides that the Secretary is to employ a president and employees. Contains provisions concerning the removal and discharge of appointees. Provides that State funds must be deposited in the Bank. Contains provisions concerning the nonliability of officers and sureties after deposit. Specifies the powers of the Bank.”

“Contains provisions concerning the guaranty of deposits and the Bank’s role as a clearinghouse, the authorization of loans (to) the General Revenue Fund, bank loans to farmers, limitations on the loans by the Bank, the name in which business is conducted and titles taken, civil actions, surety on appeal, audits, electronic fund transfer systems, confidentiality of bank records, the sale and leasing of acquired agricultural real estate, and the illinois higher education savings plan.”

“Provides that the Bank is the custodian of securities. Amends the Illinois State Auditing Act to require that the Auditor General must contract with an independent certified accounting firm for an annual audit of the Community Bank of Illinois as provided in the Community Bank of Illinois Act. Amends the Eminent Domain Act to allow the Bank to acquire property by eminent domain.”

In California, on February 17, 2011, Assembly Member Ben Hueso introduced AB 750 (as amended March 31, 2011), “Finance: investment trust blue ribbon task force.”

Besides other provisions:

“This bill would establish the investment blue ribbon task force to consider the viability of establishing the California Investment Trust, which would be a state bank receiving deposits of all state funds. The trust would support economic development, provide financing for housing development, public works and educational infrastructure, provide stability to the financial sector, provide state government banking services, lend capital to specified financial institutions, and provide for excess earnings of the trust to be used for state General Fund purposes.”

“The bill would establish the membership of the task force, which would include designated Members of the Legislature and designees of the Governor, Controller, and Treasurer….The bill would require the task force to report to the Legislature by December 1, 2012, on its findings and recommendations to the viability of establishing the California Investment Trust” and state-owned bank.

Candidates in last fall’s November elections also proposed state banks in California, Florida, Idaho, Maine, Vermont, and Michigan, though legislation for them hasn’t passed.

In 2010, Michigan’s bill got the most coverage. An initiative for it can be accessed through the following link:

http://jobs4michigan.org/index.php?option=com_content&view=article&id=2&Itemid=3

It calls a State of Michigan Development Bank an instrument to “provide credit worthy (state) Businesses loans and lines of credit on fair terms to protect and expand existing businesses and jobs, to attract new high technology and manufacturing businesses to Michigan, to put Michigan’s skilled workforce to work, and provide needed credit for Michigan farm businesses and the important tourism industry.”

It proposed using some of the $58 billion from four Michigan pension funds as initial seed capital to launch it to help local businesses and create jobs. So far the measure stalled without a legislative majority to pass it.

In the 19th century, Louisiana once had a state bank but liquidated it in 1908. Louisiana State Bank Records show the legislature created the Louisiana State Bank in March 1818 after the charter of the Louisiana Bank neared expiration.

At the time, the bank was endowed with $2 million in seed capital. Funded with $100,000, each of five branches operated autonomously. Besides providing capital for state agriculture, the bank also participated in financing the railroad industry in the mid-1800s.

It operated during Louisiana’s unprecedented growth period, with state imports and exports rivaling most other states. In 1871, it became the State National Bank, then unfortunately liquidated 11 years before North Dakota’s BND was established. Perhaps its reemergence lies ahead.

Brown explains that today’s budget crisis affecting nearly all states didn’t “arise from too much spending or too little taxation.” A Wall Street created credit freeze caused them, easily avoided with a state bank like North Dakota’s, a prosperous oasis during the worst economic crunch since the Great Depression.

The Public Banking Institute: Banking in the Public Interest

Ellen Brown heads the initiative to promote an idea whose time has come, explaining that public banks are:

— viable economic solutions to promote sustainable growth and prosperity;
— available to states, cities and local communities of any size;
— owned and operated by states or local communities, not private investors, scamming the system for profit at the public’s expense;
— economically viable like private banks, but more stable and secure;
— “able to offset tax increases with returned credit income to” communities;
— ready resources for state and local governments, “eliminating the need for large ‘rainy day’ funds,” sitting dormant unused;
— help for local businesses, farmers, working households and students, not casinos to speculate recklessly like private banks; and
— legal according to the Supreme Court.

In contrast, public banks aren’t:

— run by politicians, but by bankers responsible to states, local communities and the public welfare;
— “boondoggles for bank executives; rather, their employees are salaried public servants (paid by states or local governments with transparent pay structures) who (won’t likely) earn bonuses, commissions or fees for generating loans;” or
— “speculative ventures that maximize (short-term) profits without regard to the long-term” public interest, what responsible banking is support to stress.

Overall, public banks differ from private ones by being mandated to serve the public interest, not shareholders or corporate executives seeking maximum profits for personal gain. Moreover, by returning profits generated, lower taxes and interest rates are possible. In addition, by not needing to pay themselves interest, state project costs can, on average, be reduced by 50%.

In short, public banks work, serving people responsibly, not greedy bankers, ripping them off for personal gain. The time for change is now. The way forward: public banks serving all Americans equitably and fairly for sustainable long-term growth and prosperity.

Besides peace, good will, democratic values, and equity and justice for all, what better idea is there than that.

Senior Editor Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net. Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour/.

INFO on the Bank of North Dakota: http://www.banknd.nd.gov/about_BND/history_of_BND.html

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You Cannot Kill An Ideology With A Gun

A MEDIALENS DISPATCH—

WRITING IN THE New York Times, Jonathan Haidt, professor of psychology at the University of Virginia, commented:

‘Although Americans are in full agreement that the demise of Osama bin Laden is a good thing, many are disturbed by the revelry.’ (Haidt, ‘Why We Celebrate a Killing,’ New York Times, May 7, 2011)

Dancing on his grave: No apologies for most Americans. Introspection—where art thou?

Haidt thereby dismissed the many Americans who reject extrajudicial killing and capital punishment. American lawyer, Benjamin Ferencz, a prosecutor at the Nuremberg war crimes trials, pointed out:

‘Assassination is specifically prohibited under American law. It hadn’t been that way all the time. The CIA had always had at the top of its list the possibility of assassination as a technique until the Congress said, “No way, we don’t do business that way.”‘

There is much discussion about the legality or illegality of the West’s many wars. Ferencz explained the real relationship between war and law:

‘End war-making and go back to what the law is. And that is that you cannot use armed force to settle disputes, you can use only lawful and peaceful means to do that.’

Law is intended to be an alternative to war, not a way of justifying war.

But wouldn’t resort to the rule of law in the form of a trial have allowed bin Laden to spread propaganda, to present himself as a martyr for a noble cause? Did killing him not protect American lives? Ferencz pointed out the naivety of imagining that violence is the most potent resort:

‘You apprehend him, if you can without danger to yourself. Put him on trial. Let him make his case. Let him say to the world why they killed 3,000 people in New York City and many thousands elsewhere. And see how the public and the judges react to it. There will be, of course, some extreme elements on both sides which will say, ‘No, kill him at once. He’s a dirty dog and he deserves to be shot.’ And there will be others who will say that ‘No matter what you do, he is our holy man and he is carrying out noble goals.’ But these will be the extreme cases. The vast majority of the people will say, when the evidence is in, that this is a form of madness!

‘You cannot kill an ideology with a gun. You can only come with a better ideology and let them explain it and see what the facts are. We did that at Nuremberg. I had mass killers there; I was chief prosecutor in a trial where our lead defendant admitted killing 90,000 Jews because they were Jews, including their children, and their grandchildren, and anybody else. Well, when they explained their motivation – that this was a pre-emptive attempt to avoid attack by Russia and to secure German security [and] for the rest of the world forever – that argument was rejected, and rejected correctly by honest judges who explained why that position cannot be tolerated if you want to have a civilised world. If everybody can go out and decide he’s threatened by his neighbour, in his opinion, and therefore kill him and everybody around him, what kind of a world would we have?’

Haidt took a very different view. ‘As a social psychologist,’ he opined, he was aware that careless thinking on moral issues could have negative consequences, namely: ‘you’ll miss all that was good, healthy and even altruistic about last week’s celebrations’.

We wrote on May 7:

Dear Jonathan Haidt

I was interested to read your New York Times piece on “collective effervescence”. Can you think of any examples when it has been “good, healthy and even altruistic” for people to cheer the killing of Americans? I have to admit I can’t think of any examples.

Best wishes

David Edwards

As the email suggests, we can politically reverse any given argument, apply it to official enemies, and ask ourselves if the author would ever be willing to make such a comment. In this case, the reversal would involve Haidt warning people against missing ‘all that was good, healthy and even altruistic’ about celebrating the killing of US military leaders, US soldiers, or New Yorkers on September 11, 2001. Can we imagine Haidt or anyone else in the media ever saying such a thing? If the answer is ‘No,’ it can be for one of two reasons:

1) The United States is morally superior to its official enemies, such that it is acceptable for the American public to celebrate the demise of their inferior foes, but immoral for those enemies to celebrate the death of Americans.

2) The US is not morally superior. Rather, US commentators conform to the ‘necessary illusion’ that different standards should be applied to US and enemy actions. In other words, US opinion is biased by the ability of power to shape the debate – technical term: propaganda.

Of course, commentators and readers can be blind to this propaganda component. Thus Haidt actually declares:

‘Many social psychologists distinguish patriotism — a love of one’s own country — from nationalism, which is the view that one’s own country is superior to other countries and should therefore be dominant.’

But he added:

‘This is why I believe that last week’s celebrations were good and healthy. America achieved its goal — bravely and decisively — after 10 painful years. People who love their country sought out one another to share collective effervescence. They stepped out of their petty and partisan selves and became, briefly, just Americans rejoicing together.’

Would Haidt argue that Iraqi celebrations were ‘good and healthy’ if Iraqi commandos somehow managed to execute George W. Bush? As Noam Chomsky commented recently:

‘Uncontroversially, [Bush’s] crimes vastly exceed bin Laden’s, and he is not a “suspect” but uncontroversially the “decider” who gave the orders to commit the “supreme international crime differing only from other war crimes in that it contains within itself the accumulated evil of the whole” (quoting the Nuremberg Tribunal) for which Nazi criminals were hanged: the hundreds of thousands of deaths, millions of refugees, destruction of much of the country, the bitter sectarian conflict that has now spread to the rest of the region.’

We received a reply from Haidt to our email on May 18:

Dear Mr. Edwards:

when America is led by a man whose direct goal is to kill as many innocent civilians as possible, e.g., a man with the moral status of Bin Laden or Hitler, then the world will be quite justified in celebrating.

Thankfully, that has never happened.

Jh

And yet in his article, Haidt focused, not on the justice of the cause Americans were celebrating, but on the simple fact that they were celebrating as a group:

‘We have all the old selfish programming of other primates, but we also have a more recent overlay that makes us able to become, briefly, hive creatures like bees.’

He wrote:

‘This hive-ish moment won’t last long. But in the communal joy of last week, many of us felt, for an instant, that Americans might still be capable of working together to meet threats and challenges far greater than Osama bin Laden.’

It is unclear why Haidt would not also laud the ‘hive-ish’ behaviour of non-Americans.

Warrior President – Watch The Chin!

The BBC’s North America correspondent, Matt Frei, wrote:

‘Even in the eyes of his critics, Barack Obama has made the transition from wimp to warrior president.’

At first sight, this may seem like a neutral comment on the impact of bin Laden’s death on Obama’s political fortunes. But if we conduct our reversing thought experiment, we can ask if Frei would ever respond to Iranian, Venezuelan or North Korean state assassination inside a sovereign country by writing, for example: ‘Even in the eyes of his critics, Ahmadinejad has made the transition from wimp to warrior president.’

Is that conceivable? Surely not, because the comment in fact expresses journalistic approval, which is not permitted in relation to enemies of the West. Imagine if the comment was in response to an Iranian attack on Israel, or on the United States. The propaganda content of Frei’s comment becomes obvious.

Frei added:

‘Unlike the invasions of Iraq or even Afghanistan this was an act that needed no explanation or – for most Americans at least – justification.’

A BBC journalist, Mario Cacciottolo, took issue with our criticism of Frei on Twitter, observing of this last comment:

‘That’s a comment piece – therefore opinions are rightly expressed. It’s only unbalanced if in a straight news report’

We replied:

‘If Frei ever described as “an act that needed no explanation” any act of violence against the US or UK, he’d be out of a job, obviously.’

Cacciottolo replied:

‘You’ve not worked as a journalist have you? Don’t think you’ll change your vision of us all wearing eyepatches and stroking cats.’

A level and tone of response with which we have grown familiar over the past ten years.

Frei also produced a cringe-making video piece on Obama in which he invited viewers to study the president’s face in order to ‘Watch the chin!’, which was strong and proud, we were to understand: Again, Frei emphasised that Obama felt like ‘a warrior president’.

In similar vein, Simon Sebag Montefiore wrote in The Times of Obama:

‘In that moment, the golden-tongued liberal… metamorphosed into the victorious warlord…’ (Simon Sebag Montefiore, ‘A fitting death for a multimedia Mujahid,’ The Times, May 7, 2011)

The Guardian also lauded the violence in a leading article entitled, ‘Belief returns’:

‘Yesterday he had a chance to make the same grab for the higher ground and remain on it. No longer as a dangerous, possibly even un-American liberal intent on pushing through unpopular reforms in stormy times but as a leader who can harness the mood of the nation.’

No mention that it might be ‘dangerous’, ‘un-American’ and illiberal to order political assassination inside a sovereign state.

A leader in The Times observed:

‘When evil goes unpunished, justice, peace and reconciliation remain blighted in its shadow. For almost ten long years the families of thousands of men, women and children who died in pain and terror have known no justice or end to their mental agony while Osama bin Laden eluded capture.’ (Leading article, ‘Closure,’ The Times, May 3, 2011)

Replace ‘bin Laden’ with ‘Bush’ and The Times could have been describing Iraq. The editors cautioned:

‘To some, cheering news of a death might seem inappropriate. But it is important to remember how raw still are emotions in a country violated by al-Qaeda.’

Again, the focus is fixed on what ‘they’ have done to ‘us’. The far greater violations ‘we’ have inflicted on ‘them’ do not exist. However appalling bin Laden’s methods, the grievances he described – the ethnic cleansing of Palestinians from their homeland, US military bases and related support for tyrannies in Muslim countries, and the genocidal impact of Western sanctions and war on Iraq – are real.

The media rush to glorify Obama the ‘warrior president’ is symptomatic of a Western society that has come to view war as entirely normal. Huge numbers of films, video games and media indulge the lust for violence and war. It is by now almost impossible to imagine that the West would not always be attacking, or targeting for attack, some defenceless nation or other. As Ferencz commented:

‘We’ve all been raised in a tradition of glorification of war. That is the way to peace, and that is the way to power and that is the way to riches. And everybody who engages in war is a great hero.’

These are toxic illusions that erode the very foundations of civilised society.

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ARCHIVES: The Stealthy Rise of Pseudo Democracy

And how fake democracy is paving the way to “reasonable fascism”

PATRICE GREANVILLE Jan. 20, 2011
Revised and expanded 5/12/11

The perfect pseudoleader.

PROGRESSIVE ACTIVISTS are duly concerned about the evaporation of [the remants of] American democracy. Never as perfect or strong as our ceaseless narcissistic propaganda would have it, the whole scheme has been on a suicidal dive during the last four decades, particularly since that ludicrously revered mountebank, Ronald Reagan, assumed the titular helm of the empire in 1980. Now, the dilapidated structure is in danger of winning the dubious world historical prize for the widest chasm between rhetoric and reality—ever. In other words, the US is becoming the foremost example of what political scientists aptly call a “formal democracy.” Below an excerpt from the Wiki entry on the topic:


who have to work to keep from falling through the myriad cracks in our Darwinian system, and not the billionaires that run this rigged game from their globule of privilege at the top of the social pyramid.
.
.
Apparently half disbelieving, Noah probed deeper, this time marshalling an impecable source:
.
.
.

The incredibly shrinking democracy

Reflecting apparently upon the recent unexpected turn of events in Tunisia, the New York Times commented on the extremely fragile situation in the Middle East, predicting doom for western-backed Arab nations:


Obstinate nonresponsiveness and repeated, suspicious incompetence by the top elected officials in the face of clear and pressing needs (especially in a nation as rich as America) is the ultimate tipoff that something is awfully rotten at the center of the national covenant, and that the American democracy we grew up with (despite being badly flawed) is melting as fast as the neglected polar caps.
.
nothing. (The standing gallery of paid establishment pundits and apologists will naturally paint a different picture, tell you otherwise. It will be the usual murky picture pointing at irrelevancies, superficialities, false leads, scapegoats, and dead-ends. Pay no heed to it. This time simply tell them to piss off.)
In the way of evidence
.
Christina Green’s Civics Lesson, he states unequivocally:
Serving the interests of the plutocracy is no longer merely American government’s bias or even its mission. That function has in our time now become its full-on raison d’être, and the government is therefore capable of anything in pursuit of that purpose.
  • It has created a gigantic military machine, completely out of proportion to any actual national security need.
  • It has launched an endless series of wars, based on lie after lie.
  • It has shifted ever greater tax burdens onto the middle, working and under classes, and onto future generations – without, of course, their acquiescence.
  • It has created and defends a health care system that condemns tens of millions of its citizens – including children – to a lack of health, and to shortened lives.
  • It built a massive for-profit prison industry, incarcerating more of its citizens than any other country in the world.
  • It allowed its financiers to deploy every manner of crooked scam imaginable, in a context of almost completely absent regulation, wrecking an entire global economy in the process as these bunkster banksters enriched themselves before, during and after the meltdown they created. Then it covered their losses one hundred cents on the dollar, using taxpayer funds, even as these private sector privateers continued to flog that very same government as public enemy number one.
  • It gave corporations tax credits for shipping American jobs overseas, decimating the middle class on the altar of free trade.
  • It stood by silently, permitting banks to throw people out of their homes en masse, based on foreclosure documents that are utter garbage.
.
Cyrano’s Journal Today.



Progress in Bolivia: A Reply to Jeff Webber

The   B u l l e t
Socialist Project • E-Bulletin No. 499 

May 9, 2011

John Riddell

Pres. Morales reviews Bolivian troops.

Six years after Bolivians elected their first Indigenous-led government, their ongoing struggle for national and social liberation remains a subject of debate and disagreement among socialists around the world.

The second view is argued by Canadian socialist Jeffrey Webber in a new book and a variety of recent articles, including an interview published March 15 in The Bullet.[1] While Webber says that activists in the North should defend Bolivia against “imperialist meddling,” his primary concern is to disabuse First World socialists of illusions in the country’s government. Despite Morales’s “nominal inclusion of revolutionary slogans,” his actions involve only “relatively superficial policy initiatives,” Webber says. (Except as indicated, all quotations are from the March 15 interview in The Bullet.)

President Evo Morales and army chief Gen. Antonio Cueto inspect Bolivia’s army after it was declared “socialist, anti-imperialist and anti-capitalist.”

Far from moving toward socialism, Webber says, the Morales government has served to close off a “possibility of a fundamental, transformative overhaul of social, economic, and political structures” and to consolidate a “reconstituted neoliberalism.”

Jeffrey Webber has won international recognition for his writings on the social struggles in Bolivia, so his analysis deserves respectful consideration. His argument rests on his view – in my opinion correct – that Bolivia remains capitalist, and that a socialist transformation is not under way.

But surely that is only part of the story. The reforms that Webber derides as “superficial” have been violently opposed by the Bolivian oligarchy, who don’t seem to agree that Morales is strengthening capitalism. The U.S. embassy in La Paz has participated actively in attempts to overthrow the government. Internationally, the Bolivian government has joined ALBA, the progressive alliance founded by Cuba and Venezuela, and has taken other positive steps, including breaking diplomatic relations with Israel.

In my view, Webber and others who agree with him are measuring the Bolivian government against an impossible standard, against the ideal program of a hypothetical mass socialist movement. If we instead consider its real achievements, the gains it has made against formidable odds, we must conclude that our priority lies in support of Bolivia’s positive moves toward national sovereignty, social progress, and effective action on global warming.

Cochabamba Initiative for Climate Justice

Webber himself praises one recent Bolivian initiative of world import: the Morales government’s hosting of “a major anti-capitalist gathering in Cochabamba last year.” This was “a genuine step forward for the construction of international, eco-socialist networks,” he says.

Let us add that the conference, with more than 30,000 participants, provided a model of how social movements can establish an agenda for action by sympathetic governments. The conference also creatively applied an Indigenous perspective to the most urgent crisis facing humankind through its call for a “universal declaration of the rights of Mother Earth,” which has won significant international support.

Bolivia led an alliance of Global South countries in taking the Cochabamba resolutions to the world climate change conference in Cancun, Mexico, last December. There, Bolivia ended up standing alone in flatly rejecting an imperialist-imposed deal that again failed to act on climate change. The outcome in Cancun was a serious setback for ecological forces, but Bolivia, undeterred, is helping to spearhead organizing toward the next world climate change conference in Durban, South Africa, next December.

Imperialist powers are not accustomed to be defied in this way by a small Third-World country. Why did this historic challenge, the world’s first expression of a mass anti-capitalist ecological movement, come from Bolivia, a small and desperately poor country, remote from the world’s power centres, and weighed down with a historically fragile, dependent, and crisis-prone economy?

Agenda for Sovereignty

To explain the Cochabamba initiative, we examine its context: a reversal in U.S.-Bolivian relations since Morales was elected. Bolivia has long been subjected to aggressive U.S. intervention, supported by the country’s capitalist elite. Previously, the U.S. utilized three extended campaigns – the so-called wars against communism, drugs, and terrorism – to keep Bolivian society off balance and to pave the way for various forms of intervention. After Morales’s election in 2005, Washington turned to backing separatist forces in Bolivia’s internal conflicts.

But Bolivia shook off these aggressive intrusions and has now has taken the initiative, rallying international forces against U.S. sabotage of climate justice.[2]

Webber tips his hat to this reality, noting that “the Morales government has also developed a relatively more independent foreign policy.” This aspect of its record is worth closer attention, however, especially given Canada’s oppressive involvement in the region.

In December 2005, Morales concluded his first speech as elected president by repeating a slogan of the coca-farmers’ union, “Causachun coca, wañuchun yanquis” (‘Long live coca, death to the Yankees’). Defense of the coca leaf, significant in Indigenous culture, against the depredations of U.S. drug-war contingents was symbolic of a new course to affirm Indigenous and national dignity. In the following months:

The last of these steps was part of a package of measures designed to free Bolivia’s finances from vulnerability to great-power economic pressure.

But Bolivia’s most effective challenge of North American tutelage lay in promoting steps toward regional integration, free of U.S. and Canadian intervention. Webber mentions Bolivia’s “closer ties to Venezuela, Ecuador, and Cuba”: in fact, these ties took shape in ALBA (the Bolivarian Alliance for the Peoples of Our America), a plan for alternative economic relationships on the basis of solidarity, not the capitalist market, and simultaneously a political bloc coordinating member countries’ resistance to U.S.-led imperialism.

The campaign against U.S. intervention led, in 2008, to the expulsion of the U.S. ambassador. In the Obama administration’s third year, it has yet to negotiate terms for its ambassador’s return to La Paz.

The main barrier to resuming normal diplomatic relations is Bolivia’s strong objections to subversive activities of U.S. agencies within the country. Indeed, the Morales government has just expelled the Environmental and Economic Development program of USAID, a U.S. government agency that has engaged in protracted efforts to undermine the government.

Bolivia’s campaign to free itself from U.S. tutelage and assert national sovereignty is an outstanding achievement, which was spearheaded by the Morales government.

Defeating a Rightist Insurgency

When elected, the Morales government had “substantial room for manoeuvre,” Webber tells us. “The U.S. was overextended in Iraq and Afghanistan” and the “domestic right had been politically destroyed.” Instead of taking advantage of this opening, he says, the Morales government’s policies, despite “superficial policy initiatives … that run against orthodox neoliberalism,” remain “pre-eminently concerned with the restoration of profitability and the subordination of the working class.”

This picture is hard to square with the reality of social polarization during the regime’s first years. Far from showing gratitude for Morales’s supposed efforts to restore capitalist profitability, major sectors of Bolivia’s capitalist class launched a violent rebellion, purportedly for regional autonomy but primarily designed to shatter the government’s authority in the country’s richest areas.

The rightist revolt was triggered by the government’s initiative for a new constitution that would refound Bolivia as a “plurinational” republic, and by fear that Indigenous peasants would use their enhanced status and authority insist on return of lands stolen by white, mestizo and foreign elites.

It is true, as Webber says, that the reform of the hydrocarbon industry, which vastly increased government royalties, fell short of full nationalization. Also, agrarian reform measures have been less radical, so far, than those that followed Bolivia’s 1952 revolution. Nonetheless, surely it is clear that, the present Bolivian government’s reform measures – the assertion of national sovereignty vis-à-vis the U.S. empire; the new constitution; the agrarian reform, with all its limitations; rights and dignity for Indigenous peoples; increased royalties from resource extraction; etc. – were regarded as crucially important by both the rightist oligarchy and popular movements.

The manner in which this confrontation was overcome is instructive. The right-wing insurgency took the form of a political movement mobilizing in the streets and seeking to impose its will through violence – the characteristic method of fascism. For a time, much of the eastern region where the rightists were strong was close to a no-go area for government leaders and their supporters. Washington threw its support strongly behind the anti-government forces.

A capitalist government’s standard response, faced with such a challenge, is to call in the police and army and impose its authority by force. If successful, such action in Bolivia would have left the army as arbiter of the situation; more likely, it would have led to civil war and foreign intervention.

It is thus striking that the Morales government relied not on the army but on the strength of social movements that had elected it to office. And far from resisting the government’s supposed measures to subjugate them, the country’s working people mobilized again and again to defend government initiatives against forcible right-wing obstruction. Fascist-type violence and provocation was thwarted through counter-mobilization, followed up by democratic consultations in which Morales obtained the backing of almost two-thirds of the voters. The neo-fascist thugs were isolated and marginalized. This historic achievement by Bolivian working people stands as a model of how to respond to Fascist-type movements.

Why Defend the Morales Regime?

Speaking of Bolivia today, Webber states that “the popular sectors are rightly concerned with defending the Morales regime against any imperialist meddling and right-wing efforts at destabilization when they emerge.” This is a welcome statement. Still, if Morales truly represents “reconstituted neoliberalism,” why should he be defended?

Certainly it is true that the Bolivian state remains capitalist, and the government functions within the framework of deeply entrenched capitalist culture and social relations. It rules through a capitalist state apparatus that is ill-adapted to implement progressive reforms. It is often at odds with popular struggles – particularly now that gains against the rightists and Washington have opened more scope for such movements. Capitalist state bureaucrats have attempted to infiltrate the MAS, and turn it to their own ends.

But it is equally true that, through the victories of the MAS, popular movements have taken positions of authority within the government and successfully used this leverage to drive forward a popular agenda on many issues that the Bolivian people feel are deeply important.

In Bolivia today, Webber notes, “a situation persists in which there is no organized, alternative socio-political force to the left of the ruling party.” Surely this fact suggests that, despite all strains, the tie between social movements in Bolivia and the Morales government has not been broken.

A Revolutionary Opportunity?

Webber regrets the “failure of the 2003 and 2005 mass mobilizations to translate into an overthrow of the existing capitalist state and the construction of a popular, sovereign, self-governing power of the Indigenous proletarian peasant majority from below.” He attributes this negative outcome to “the impact of the absence of a revolutionary party.”

Certainly, the presence of a broad, effective revolutionary organization would have strengthened the people’s movement and influenced the outcome. Yet it is striking that not only was a revolutionary party absent (a not uncommon situation in our world) but that no significant group on the left posed a viable alternative to MAS’s electoral project. How can this be? Was there something wrong with the Bolivian popular movements – with the human material, perhaps, or with their traditions? Or were there factors that made an all-out drive to overthrow the capitalist state less attractive than Webber implies?

The type of overturn that Webber describes – which I would call a socialist revolution – has not occurred since Cuba’s revolution of 1959-62. Indeed, some Marxists argue that there has been no successful socialist revolution anywhere since 1917. This decades-long delay cannot be put down to inadequacies of revolutionary will or organization. It points to the existence of deep-rooted cultural, social, and economic barriers to implementing a socialist agenda, which cannot be overcome quickly or in a small, isolated sector of the world.

Moreover, we must recall the overriding lesson of the great Russian anti-capitalist uprising of 1917-18: to survive and flourish, the revolutionary alternative had to be extended internationally. That was true not just “ultimately,” as Webber states, but immediately. The failure of revolution outside Russia had a swift, devastating impact on the new workers’ state that was keenly felt by 1919. Fortunately, Soviet Russia, which covered a sixth of the world’s surface, possessed a range of raw materials and diversified industries sufficient to enable it to withstand several years of capitalist blockade and armed assault. Bolivia, by contrast, has an economy that is totally dependent on imports and exports, and does not have even an ocean port, let alone the backing of a powerful sponsor such as that enjoyed by Cuba during and for many years after its anti-capitalist revolution.

The greatest barrier to a socialist overturn in Bolivia is not the Morales leadership but the absence of workers’ governments in economically advanced countries that could provide effective support.

The Morales government’s focus on developing ties with other progressive or semi-progressive regimes – and even (to Webber’s dismay) with other governments in conflict with imperialism such as Iran – represents intelligent revolutionary strategy. The ALBA alliance is an attempt to widen the options for poor, dependent countries, a project that, if it flourishes, will create more favourable conditions for anti-capitalist revolution.

As we know from experience in Canada, working people do not normally attempt to overthrow the capitalist state if the road to reform appears to be open. Revolution and the struggle for reform are not counterposed, but are rather part of a single process. A struggle for reforms can both strengthen workers’ combative power and demonstrate the limits of what can be achieved in capitalism. Certainly, in Bolivia, events have shown that the path to reform did indeed lie open. The Morales government did not overthrow capitalism and does not appear likely to do so, but its period in office has been marked by tangible advances for working people and, also, has demonstrated limits of reform under the present capitalist state.

Metropolitan Responsibilities

In terms of sheer drama and as a demonstration of the power and creativity of working people, struggles in Bolivia over the last decade call for close attention. Many writers on the left have studied this experience and expressed their opinions on where Bolivian workers acted wisely and where they took a wrong step. This process is natural and positive, and Webber has contributed to it significantly.

However, we must bear in mind that in the Bolivian drama we are not just analysts and critics, we are also actors. Bolivia’s struggle for democracy and sovereignty has been actively opposed by the Canadian government and its allies. Imperialist intervention in Latin America is under way right now – to restrict national sovereignty, shore up reactionary regimes, overthrow defiant governments, and crush popular movements. It is an urgent threat that has Bolivia in its gunsights.

In another article, Webber has written,

“From my perspective, the first priority of activists in the Global North should indeed be to oppose imperialist meddling anywhere. This means, concretely, opposition under any circumstances to imperialist-backed destabilization campaigns against Morales. But the political situation is too complicated to end our discussion at that stage. Our first allegiance ought to be with the exploited and oppressed themselves, rather than any leaders or governments who purport to speak in their name.”[4]

Agreed, our “first allegiance” should be to the masses, but Webber’s counterposition of the masses and the MAS leadership fails to acknowledge their close relationship.

Moreover, Webber’s use of the term “imperialist meddling” radically understates the systemic nature of imperialist domination or the devastating violence of its intervention in countries like Haiti, Honduras, or Colombia. Imperialist domination is not expressed merely in “destabilization campaigns” – it permeates and defines every aspect of Bolivia’s social, economic, and political reality.

In this situation, the “first priority of activists” is not criticism of the process in Bolivia, but solidarity – which must be expressed above all in opposition to Canadian government policies. In that spirit, all of us, including those who share Webber’s dim view of the Morales government, need to contribute to the broad movement of solidarity with the people of Bolivia and with other peoples victimized by imperialist domination. •

John Riddell is a member of Toronto Bolivia Solidarity, t.grupoapoyo.org.

Endnotes:

1.From Red October to Morales: The Politics of Rebellion and Reform in Bolivia,” The Bullet, March 15, 2011.

See also Jeffrey R. Webber, From Rebellion to Reform in Bolivia: Class Struggle, Indigenous Liberation, and the Politics of Evo Morales, Haymarket Books: Chicago 2011; “From Rebellion to Reform: Bolivia’s Reconstituted Neoliberalism,” International Socialist Review, no. 73 (Sept.-Oct. 2010); “Fantasies Aside, It’s Reconstituted Neoliberalism in Bolivia under Morales,” ISR, #76 (Mar.-Apr. 2011); “Struggle, Continuity and Contradiction in Bolivia,” International Socialism, #25 (Winter 2010), “Evismo – Reform? Revolution? Counter-Revolution?International Viewpoint, #382 (October 2006).

For a reply by Federico Fuentes, see “Government, social movements, and revolution in Bolivia today,” ISR, #76 (Mar.-Apr. 2011).

2. See Martin Sivak, “The Bolivianisation of Washington-La Paz Relations: Evo Morales’ Foreign Policy Agenda in Historical Context,” in Evo Morales and the Movimiento al Socialismo in Bolivia, London: Institute for Study of the Americas, 2011.

3. Sivak, “Bolivianisation,” pp. 161–71.

4. Webber, “Rebellion to Reform”; also quoted in “Fantasies Aside.”

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BILL BLUM: Reflections on the US assault on Arab lands

The Anti-Empire Report

May 2nd, 2011
by William Blum
www.killinghope.org

Incredibly, things were much better under Saddam.

Iraq: Let us not forget what “humanitarian intervention” looks like.

Libya: Let us not be confused as to why Libya alone has been singled out for “humanitarian intervention”.

On April 9, Condoleezza Rice delivered a talk in San Francisco. Or tried to. The former Secretary of State was interrupted repeatedly by cries from the audience of “war criminal” and “torturer”. (For which we can thank our comrades in Code Pink and World Can’t Wait.) As one of the protesters was being taken away by security guards, Rice made the kind of statement that has now become standard for high American officials under such circumstances: “Aren’t you glad this lady lives in a democracy where she can express her opinion?” She also threw in another line that’s become de rigueur since the US overthrew Saddam Hussein, an argument that’s used when all other arguments fail: “The children of Iraq are actually not living under Saddam Hussein, thank God.” 1

My response to such a line is this: If you went into surgery to correct a knee problem and the surgeon mistakenly amputated your entire leg, what would you think if someone then remarked to you how nice it was that “you actually no longer have a knee problem, thank God.” … The people of Iraq no longer have a Saddam problem.

Unfortunately, they’ve lost just about everything else as well. Twenty years of American bombing, invasion, occupation and torture have led to the people of that unhappy land losing their homes, their schools, their electricity, their clean water, their environment, their neighborhoods, their archaeology, their jobs, their careers, their professionals, their state-run enterprises, their physical health, their mental health, their health care, their welfare state, their women’s rights, their religious tolerance, their safety, their security, their children, their parents, their past, their present, their future, their lives … more than half the population either dead, disabled, in prison, or in foreign exile … the air, soil, water, blood and genes drenched with depleted uranium … the most awful birth defects … unexploded cluster bombs lie in wait for children … a river of blood runs alongside the Euphrates and Tigris … through a country that may never be put back together again.

In 2006, the UN special investigator on torture declared that reports from Iraq indicated that torture “is totally out of hand. The situation is so bad many people say it is worse than it has been in the times of Saddam Hussein.” Another UN report of the same time disclosed a rise in “honor killings” of women. 2

“It is a common refrain among war-weary Iraqis that things were better before the U.S.-led invasion in 2003,” reported the Washington Post on May 5, 2007.

“I am not a political person, but I know that under Saddam Hussein, we had electricity, clean drinking water, a healthcare system that was the envy of the Arab world and free education through college,” Iraqi pharmacist Dr. Entisar Al-Arabi told American peace activist Medea Benjamin in 2010. “I have five children and every time I had a baby, I was entitled to a year of paid maternity leave. I owned a pharmacy and I could close up shop as late as I chose because the streets were safe. Today there is no security and Iraqis have terrible shortages of everything — electricity, food, water, medicines, even gasoline. Most of the educated people have fled the country, and those who remain look back longingly to the days of Saddam Hussein.” 3

And this from two months ago:

“Protesters, human rights workers and security officials say the government of Prime Minister Nouri al-Maliki has responded to Iraq’s demonstrations in much the same way as many of its more authoritarian neighbors: with force. Witnesses in Baghdad and as far north as Kirkuk described watching last week as security forces in black uniforms, tracksuits and T-shirts roared up in trucks and Humvees, attacked protesters, rounded up others from cafes and homes and hauled them off, blindfolded, to army detention centers. Entire neighborhoods … were blockaded to prevent residents from joining the demonstrations. Journalists were beaten.” 4

So … can we expect the United States and its fellow thugs in NATO to intervene militarily in Iraq as they’re doing in Libya? To protect the protesters in Iraq as they tell us they’re doing in Libya? To effect regime change in Iraq as they’re conspiring, but not admitting, in Libya?

Similarly Tunisia, Egypt, Bahrain, Yemen, Syria … all have been bursting with protest and vicious government crackdown in recent months, even to a degree in Saudi Arabia, one of the most repressive societies in the world. Not one of these governments has been assaulted by the United States, the UK, or France as Libya has been assaulted; not one of these countries’ opposition is receiving military, financial, legal and moral support from the Western powers as the Libyan rebels are — despite the Libyan rebels’ brutal behavior, racist murders, and the clear jihadist ties of some of them. 5 The Libyan rebels are reminiscent of the Kosovo rebels — mafiosos famous for their trafficking in body parts and women, also unquestioningly supported by the Western powers against an Officially Designated Enemy, Serbia.

So why is only Libya the target for US/NATO missiles? Is there some principled or moral reason? Are the Libyans the worst abusers of their people in the region? In actuality, Libya offers its citizens a higher standard of living. (The 2010 UN Human Development Index, a composite measure of health, education and income ranked Libya first in Africa.) None of the other countries has a more secular government than Libya. (In contrast some of the Libyan rebels are in the habit of chanting that phrase we all know only too well: “Allah Akbar”.) None of the others has a human-rights record better than that of Libya, however imperfect that may be — in Egypt a government fact-finding mission has announced that during the recent uprising at least 846 protesters were killed as police forces shot them in the head and chest with live ammunition. 6 Similar horror stories have been reported in Syria, Yemen and other countries of the region during this period.

It should be noted that the ultra-conservative Fox News reported on February 28: “As the United Nations works feverishly to condemn Libyan leader Muammar al-Gaddafi for cracking down on protesters, the body’s Human Rights Council is poised to adopt a report chock-full of praise for Libya’s human rights record. The review commends Libya for improving educational opportunities, for making human rights a “priority” and for bettering its “constitutional” framework. Several countries, including Iran, Venezuela, North Korea, and Saudi Arabia but also Canada, give Libya positive marks for the legal protections afforded to its citizens — who are now revolting against the regime and facing bloody reprisal.”

Of all the accusations made against Gaddafi perhaps the most meaningless is the oft-repeated “He’s killing his own people.” It’s true, but that’s what happens in civil wars. Abraham Lincoln also killed his own people.

Muammar Gaddafi has been an Officially Designated Enemy of the US longer than any living world leader except Fidel Castro. The animosity began in 1970, one year after Gaddafi took power in a coup, when he closed down a US air force base. He then embarked on a career of supporting what he regarded as revolutionary groups. During the 1970s and ’80s, Gaddafi was accused of using his large oil revenues to support — with funds, arms, training, havens, diplomacy, etc — a wide array of radical/insurgent/terrorist organizations, particularly certain Palestinian factions and Muslim dissident and minority movements in the Middle East, Africa, and Asia; the IRA and Basque and Corsican separatists in Europe; several groups engaged in struggle against the apartheid regime in South Africa; various opposition groups and politicians in Latin America; the Japanese Red Army, the Italian Red Brigades, and Germany’s Baader-Meinhof gang.

It was claimed as well that Libya was behind, or at least somehow linked to, an attempt to blow up the US Embassy in Cairo, various plane hijackings, a bomb explosion on an American airliner over Greece, the blowing up of a French airliner over Africa, blowing up a synagogue in Istanbul, and blowing up a disco in Berlin which killed some American soldiers. 7

In 1990, when the United States needed a country to (falsely) blame for the bombing of PanAm flight 103 over Lockerbie, Scotland, Libya was the easy choice.

Gaddafi’s principal crime in the eyes of US President Ronald Reagan (1981-89) was not that he supported terrorist groups, but that he supported the wrong terrorist groups; i.e., Gaddafi was not supporting the same terrorists that Washington was, such as the Nicaraguan Contras, UNITA in Angola, Cuban exiles in Miami, the governments of El Salvador and Guatemala, and the US military in Grenada. The one band of terrorists the two men supported in common was the Moujahedeen in Afghanistan.

And if all this wasn’t enough to make Gaddafi Public Enemy Number One in Washington (Reagan referred to him as the “mad dog of the Middle East”), Gaddafi has been a frequent critic of US foreign policy, a serious anti-Zionist, pan-Africanist, and pan-Arabist (until the hypocrisy and conservatism of Arab governments proved a barrier). He also calls his government socialist. How much tolerance and patience can The Empire be expected to have? When widespread protests broke out in Tunisia and Egypt, could Washington have resisted instigating the same in the country sandwiched between those two? The CIA has been very busy supplying the rebels with arms, bombing support, money, and personnel.

It may well happen that the Western allies will succeed in forcing Gaddafi out of power. Then the world will look on innocently as the new Libyan government gives Washington what it has long sought: a host-country site for Africom, the US Africa Command, one of six regional commands the Pentagon has divided the world into. Many African countries approached to be the host have declined, at times in relatively strong terms. Africom at present is headquartered in Stuttgart, Germany. According to a State Department official: “We’ve got a big image problem down there. … Public opinion is really against getting into bed with the US. They just don’t trust the US.” 8 Another thing scarcely any African country would tolerate is an American military base. There’s only one such base in Africa, in Djibouti. Watch for one in Libya sometime after the dust has settled. It’ll be situated close to the American oil wells. Or perhaps the people of Libya will be given a choice — an American base or a NATO base.

And remember — in the context of recent history concerning Iraq, North Korea, and Iran — if Libya had nuclear weapons the United States would not be attacking it.

Or the United States could realize that Gaddafi is no radical threat simply because of his love for Condoleezza Rice. Here is the Libyan leader in a March 27, 2007 interview on al-Jazeera TV: “Leezza, Leezza, Leezza … I love her very much. I admire her, and I’m proud of her, because she’s a black woman of African origin.”

Over the years, the American government and media have fed us all a constant diet of scandalous Gaddafi stories: He took various drugs, was an extreme womanizer, was bisexual, dressed in women’s clothing, wore makeup, carried a teddy bear, had epileptic fits, and much more; some part of it may have been true. And now we have the US Ambassador to the United Nations, Susan Rice, telling us that Gaddafi’s forces are increasingly engaging in sexual violence and that they have been issued the impotency drug Viagra, presumably to enhance their ability to rape. 9 Remarkable. Who would have believed that the Libyan Army had so many men in their 60s and 70s?

As I write this, US/NATO missiles have slammed into a Libyan home killing a son and three young grandchildren of Gaddafi, this after repeated rejections of Gaddafi’s call for negotiations — another heartwarming milestone in the glorious history of humanitarian intervention, as well as a reminder of the US bombing of Libya in 1986 which killed a young daughter of Gaddafi.

Two more examples, if needed, of why capitalism can not be reformed

Transocean, the owner of the drilling rig that exploded and sank in the Gulf of Mexico a year ago, killing 11 workers and sending two hundred (200) million gallons of oil cascading over the shoreline of six American states, has announced that (through using some kind of arcane statistical method) it had “recorded the best year in safety performance in our Company’s history.” Accordingly, the company awarded obscene bonuses on top of obscene salaries to its top executives. 10

In Japan, even as it struggles to contain one of history’s worst nuclear disasters, Tokyo Electric Power Co. (TEPCO) has proposed building two new nuclear reactors at its radiation-spewing power plant. The plan had taken shape before the March 11 earthquake and tsunami and TEPCO officials see no reason to change it. The Japanese government agency in charge of approving such a project has reacted in shocked horror. “It was just unbelievable,” said the director of the agency. 11

Which leads us to A.W. Clausen, president of Bank of America, speaking to the Greater Los Angeles Chamber of Commerce, in 1970:

“It may sound heretical to some in this room to say that business enterprise is not an absolute necessity to human culture … Ancient Egypt functioned more than 3000 years without anything resembling what we today understand by the term ‘corporate enterprise’ or even ‘money’. Within our span of years, we have witnessed the rise of the Soviet Socialist empire. It survives without anything you or I would call a private corporation and little that approaches our own monetary mechanism. It survives and is far stronger than anyone might have expected from watching its turbulent beginnings in 1917 … It is easy to mislead ourselves into thinking that there is something preordained about our profit-motivated, free-market, private-enterprise system — that is, as they used to say of gold, universal and immutable.”

Items of interest from a journal I’ve kept for 40 years, part III

Notes

  1. Video of Rice talk
  2. Associated Press, September 21, 2006
  3. Common Dreams, August 20, 2010
  4. Washington Post, March 4, 2011
  5. Washington Times, February 24, 2011; The Telegraph (London), March 25, 2011; Alexander Cockburn, “Libya, Oh What a Stupid War; Fukushima, Cover-Up Amid Catastrophe”; “Al Qa’ida’s Foreign Fighters in Iraq” (PDF), Combating Terrorism Center, US Military Academy, West Point, NY, December 2007
  6. Associated Press, April 20, 2011
  7. Gaddafi’s history of supporting terrorism, real and alleged: William Blum, Killing Hope, chapter 48
  8. The Guardian (London), June 25, 2007
  9. Reuters news agency, April 29, 2011
  10. Washington Post, April 1, 2011
  11. Washington Post, April 6, 2011

Editor for Foreign Policy William Blum is the author of:

Portions of the books can be read, and signed copies purchased, at www.killinghope.org

Previous Anti-Empire Reports can be read at this website.

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