Noam Chomsky: The United States is totally isolated

The iconic philosopher on America’s broken education system and the lasting influence of the Monroe Doctrine

Noam Chomsky: The United States is totally isolated
Noam Chomsky (Credit: AP/Nader Daoud)
This article originally appeared on Jacobin.

JacobinWe’re pleased to publish another interview with Professor Noam Chomsky. In this recent conversation with Dan Falcone, a Washington DC–based high school history teacher, Chomsky builds on our last interview, discussing everything from Scott Walker to the Monroe Doctrine, from Citizens United to for-profit colleges. We hope you’ll share it widely.


I wanted to stay on the topic of education and ask you about language, terminology, and definitions in the social sciences. So for example, I’ve noticed in my curriculum that there’s a tendency to have terms with a real definition and then a code definition. Terms like foreign aid, independence movements, partition, and democracy.

Two terms that I know are of particular interest to you are anarchism and libertarianism. Could you discuss the varying definitions of those two terms, anarchism and libertarianism? Maybe the American definition versus the European, and why that’s important for education to sort out?
There’s hardly a term in social science, political discourse, academic professions, and the scholarly professions where there’s anything remotely like clear definitions. If you want a clear definition, you have to go to mathematics or parts of physics.

Definitions are basically parts of theoretical structures. A definition doesn’t mean anything unless it’s embedded in some theory of some explanatory scope. And in these areas, there really are no such theories. So the terms are in fact used very loosely. They have a strong ideological component.

Take, say, democracy. The United States, I’m sure in your school, they teach as the world’s leading democracy. It’s also a country in which about 70 percent of the population, the lower 70 percent on the income scale, are completely disenfranchised.

Their opinions have no detectable influence on the decisions of their own representatives. Which is a good reason to believe, a large reason, why a huge number of people don’t bother voting. They know that it’s a waste of time. So is that a democracy? No, not really.

And you could say the same about almost any other term. Sometimes it’s almost laughable. So for example, in 1947, the US government changed the name of the War Department. They changed it to the Defense Department — any person with a brain functioning knew that we’re not going to be involved in defense anymore. We’re going to be involved in aggression. They didn’t have to read Orwell to know that. And in fact, religiously, every time you read about the war budget, it’s called the defense budget. And defense now means war, very much as in Orwell. And pretty much across the board.

Anarchism is used for a very wide range of actions, tendencies, beliefs, and so on. There’s no settled definition of it. Those who use the term should be indicating clearly, as clearly as you can, what element in this range you’re talking about. I’ve tried to do that. Others do it. You know, anarcho-syndicalism, communitarian anarchism, anarchy in the sense of let’s get rid of everything, the old kind of primitive anarchism, many different types. And you’re not going to find a definition.

Libertarianism has a special meaning predominantly in the United States. In the United States, it means dedication to extreme forms of tyranny. They don’t call it that, but it’s basically corporate tyranny, meaning tyranny by unaccountable private concentrations of power, the worst kind of tyranny you can imagine.

It picks up from the libertarian tradition one element, namely opposition to state power. But it leaves open all other forms of — and in fact favors — other forms of coercion and domination. So it’s radically opposed to the libertarian tradition, which was opposed to the master servant relation.

Giving orders, taking orders — that’s a core of traditional anarchism, going back to classical liberalism. So it’s a special, pretty much uniquely American development and related to the unusual character of the United States in many respects.

America is to quite an unusual extent a business-run society. That’s why we have a very violent labor history. Much more so than comparable countries, and attacks on labor here were far more extreme. There are accurate libertarian elements in the United States, like protection of freedom of speech, which is probably of a standard higher than other countries. But libertarianism is designed in the United States to satisfy the needs of private power.

Actually, it’s an interesting case in connection with the media. The United States is one of the few countries that basically doesn’t have public media. I mean, theoretically, there’s NPR, but it’s a highly marginal thing and is corporate funded anyway. So there’s nothing like the BBC here. Most countries have something or other. And that was a battleground, especially when radio and television came along.

The Founding Fathers actually were in favor of different conceptions of freedom of speech. There’s a narrow conception which interprets it as being a negative right, meaning you should be free of external interference. There’s a broader conception which regards it as a positive right: you should have a right to impart and access information, hence the positive interpretation. The United Nations accepts the positive interpretation, and theoretically, the US does too.

If you look at the Universal Declaration of Human Rights, I think Article 19 says that every person must have the right to express themselves without constraint and to impart and receive information over the widest possible range. That’s the positive right.

That was a battleground in the 1930s and 1940s. Particularly right after the Second World War, there were high level commissions taking both sides. And the position that won out is what was called corporate libertarianism, meaning corporations have the right to do anything they want without any interference.

But people don’t have any rights. Like you and I don’t have the right to receive information. Technically, we can impart information if we can buy a newspaper, but the idea that you should be a public voice that people, to the extent that this society’s democratic and participatory, was eliminated in the United States. And that’s called libertarianism. Meaning mega-corporations can do what they like without interference.

IN THE EVER-GROWING FIELD OF REPUBLICAN PRESIDENTIAL CANDIDATES IS WISCONSIN GOV. SCOTT WALKER. HE’S ADVOCATING LOCAL CONTROL OF SCHOOLS IN AN EFFORT TO UNDERMINE PUBLIC EDUCATION. WITH HIS ANNOUNCEMENT TO RUN FOR PRESIDENT, I’M REMINDED OF THE RECALL IN WISCONSIN A FEW YEARS AGO AND ITS RELATION TO THE CITIZENS UNITED CASE. CAN YOU DISCUSS THE RAMIFICATIONS OF THE CITIZENS UNITED CASE AND THE IMPACT ON TEACHERS AND EDUCATION, AND THE OVERALL MEANING OF THAT DECISION ON THE SOCIETY?

The Citizens United decision should be considered in the context of a series of decisions, starting with Buckley v. Valeo back in the ’70s, that determined that money is a form of speech. You and I can speak in the same roughly equal loudness, but you and Bill Gates can’t speak in the same loudness in regards to money. So that was a big deal, that there can’t be any interference with the use of money, for example — funding.

Now there were restrictions in the laws on campaign funding, but they’ve been slowly eroded. Citizens United pretty much dispensed with them. There’s still some limitations but not much. So exactly what its impact was is pretty hard to judge. But it’s part of a series of decisions which have led to a situation in which, if you want to run for president, you have to have several billion dollars. And there’s only certain sources for several billion dollars. If you want to run for Congress, pretty much the same. House of Representatives, you have to have a huge campaign funded.

Technically, you could decide, “I’m going to run for president.” That’s a meaningless freedom. It doesn’t mean anything. And the effect is pretty striking. The impact of money on politics goes way back — you know, Tom Ferguson’s Golden Rule? It’s the best work on this topic; he’s a very good political scientist, and has done work, very good work, on the impact of campaign funding on both electability, but also more significantly on political decisions. And he traces it back to the nineteenth century. And the impact is quite substantial — it goes right through the New Deal and on to the present.

But now it’s in the stratosphere. That’s why 70 percent of the public is totally disenfranchised. They don’t contribute to campaign funding, so they’re out. And if you sort of go up the income/wealth scale, you can detect greater levels of influence, but it’s not really significant until you get to the very top, maybe a fraction of 1 percent or something, where decisions are basically made.

It’s not 100 percent, so you find some deviation. There are times when public opinion is powerful enough so that it does matter, but these are overwhelming tendencies. The effect on education, of course, is obvious. It means that the concentrated power of the business classes will determine educational as well as other policies. That’s why you’re getting charter schools, cutting back of funding for state colleges, the corporatization of the universities. I mean, it’s across the board.

Universities, for example, are increasingly going to a business model in which what matters is not educational attainment, but the bottom line. So if you can get temporary, cheap, dispensable labor, like adjuncts and grad students, that’s preferable to tenured faculty. And of course by other measures, it’s not that preferable, but this is a business model.

At the college level, there’s a huge growth of these private colleges, most of which are total scams. They’re not private, they get maybe 80–90 percent of their funding from the federal government through Pell Grants and other things. And they’re very profitable. So during the recession, they stayed extremely profitable. All their corporate profits went down, but their stock stayed high.

They have a huge drop-out rate, enormous. Corinthian Colleges, one of the biggest for-profits, just had a big scandal. They made promises that they’d recruit deprived populations. So they’ll heavily recruit in, say, black areas, with all kind of inducements to what you can become if you take on a huge debt and go here. Kids end up with an enormous debt and very few of them even graduate. It’s just a major scam. And meanwhile, the community colleges, which can serve these communities, they’re being cut back.

And that’s very natural in a business-run society. After all, business is interested in profit and power; not a big surprise. And so therefore why have public education, when you can use it as a way to profit? It’s very much like the health care system. Why is the United States about the only country without any national health — without any meaningful national health care? Well, it’s the same thing. It’s extremely inefficient, very costly, and very bad for the patient, about twice the per capita costs of comparable countries, with some of the worst outcomes.

I don’t know if you’ve tried to get health insurance, but it’s an unbelievable process. My wife just did it, and we spent days trying to get on the computer networks, which don’t work, and then you call the office and then you wait for an hour and finally you get somebody that doesn’t know what you’re talking about and if you do it, it fails. And we finally had to end up after days of this, going to an office, a physical office out in the suburbs, a small office, where you can actually talk to a human being, and then figure it out in five minutes.

Alright, that saves money for the government and the insurance companies, but it costs money to the consumer. And in fact, that’s not counted, so economists, for ideological reasons, don’t count costs to users. Like if you think there’s an error on your bank statement, say, and you call the bank, you don’t get somebody to talk to. You get a menu, a recorded menu, and then comes a whole routine, and then maybe if you’re patient, minutes later, you get somebody to talk to. Saves the bank a lot of money, so it’s called very efficient, but that’s because they don’t count the cost to you, and the cost to you is multiplied over the number of consumers — so it’s enormous.

If you added those costs, the business would be extremely inefficient. But for ideological reasons you don’t count the cost to people, you just count the cost to business. And even with that, it’s highly inefficient. All of these — it’s not because people want it. People have favored national health care for decades. But it doesn’t matter. What the people want is essentially irrelevant.

Education is simply part of it. So sure, when Scott Walker talks about going down to the local level, it’s put in the framework of, “I’m for the common man.” What he means is that at the local level, businesses can have a lot more power than they can at the state level or at the federal level. They have plenty of power at the higher levels, but if it’s a local school board, the local real-estate people determine what happens. There’s as little resistance as you can possibly get down at the lower levels. It would be different if it was a democratic country where people were organized, but they’re not. You know, they’re atomized.

That’s why the right wing is in favor of what they call states’ rights. It’s a lot easier to take over a state than the federal government. Pretty easy to take over the federal government too, but a lot easier when you get to the state level.

And all of this is veiled in nice, appealing terminology about we’ve got to favor the little guy and send freedom back to the people and take it away from power, but it means exactly the opposite — just like libertarianism.

DO YOU SEE A LOT OF PROPAGANDA EFFORTS IN TERMS OF UNDERMINING TEACHERS, MAYBE IN REGARDS TO PENSIONS OR JOB SECURITY, TO HAVE “NEIGHBOR TURNING AGAINST NEIGHBOR”?

It’s unbelievable. In fact, what Walker did, or his advisers, was pretty clever. They unionized the teachers, firemen, policemen, and people in the public sector who had benefits. And what they concealed, and what you know, is the fact that the benefits are paid for by the recipients. So you pay for the benefits by lowering your wages. That’s part of the union contract. You defer payment and take a slightly lower wage and get a pension. But that’s suppressed.

So the propaganda which was directed at the workers in the private sector said, “Look at these guys. They’re getting all kinds of benefits and pensions, security, and you’re being thrown out of your job.” Which is true. They were being thrown out of their jobs. And of course the unions had already been beaten down to almost nothing in the private sector. And this propaganda was able to mobilize working people against people in the public sector. It was effective propaganda. I mean, a total scam, but effective.

It’s pretty interesting to see it work in detail. You get a lot of insight. So you remember in 2008, when the whole economy was crashing, we could have gone into a huge depression, mostly because of the banks and their corruption and so on. But there was one huge insurance company, AIG, the biggest international insurance company, which was collapsing. If they would have collapsed, they would have brought down with them Goldman Sachs and a whole bunch of big investment firms, so the government wouldn’t let them collapse.

So they were bailed out, a huge bailout. And it was really malfeasance, if not criminality, on their part that led to all of this, but they were bailed out, and Timothy Geithner had to keep the economy going. Right after that, right at that time, the executives of AIG got huge bonuses. That really didn’t look good, so there was some publicity about it, bad publicity. But Larry Summers, the former secretary of treasury, a big economist, said, you have to honor the contracts. And the contract said that these guys have to get a bonus.

Right at that same time, the state of Illinois was going bankrupt, it claimed. And so they had to stop paying pensions to teachers. Well, you didn’t have to honor that contract. So yeah, for the gangsters at AIG who practically brought the economy down, you got to honor that contract, because they got to get their multimillion dollar stock options. But for the teachers who already paid for the pensions, you don’t have to honor that one.

And that’s the way the country runs. That’s what a business-run society looks like in case after case. And it’s all consistent and perfectly sensible and understandable.

SHIFTING TO A FOREIGN POLICY QUESTION, I REMEMBER RECALLING BEING GIVEN THE TRADITIONAL ACCOUNT OF THE MONROE DOCTRINE AS A YOUNG STUDENT OF HISTORY, AND IN MY FORMATIVE YEARS, HEGEMONIC TERMS OR IMPERIALISTIC PHRASEOLOGY IN THE CLASSROOM WASN’T COMMON. IT WAS EXCLUDED FROM MY HISTORY INTRODUCTION ALL THE WAY THROUGH HIGH SCHOOL.

ANYWAY, A LITTLE WHILE BACK, SECRETARY OF STATE JOHN KERRY ANNOUNCED THAT “THE ERA OF THE MONROE DOCTRINE IS OVER.” IT MIGHT HAVE BEEN JUST RHETORIC, AND RECENTLY VICE PRESIDENT BIDEN ANNOUNCED THAT A $1 BILLION AID PACKAGE WOULD BE DELIVERED TO CENTRAL AMERICA.

THAT PROMPTED SEVERAL SCHOLARS LIKE ADRIENNE PINE, AN ACADEMIC FROM AMERICAN UNIVERSITY, TO EXPRESS CONCERNS — HER AREA OF EXPERTISE IS HONDURAS AND GUATEMALA, AND SHE WAS ARGUING THAT THIS “AID PACKAGING” WOULD GO TO CORRUPT GOVERNMENT OFFICIALS IN THOSE COUNTRIES AND IT WOULD DO LITTLE TO ENHANCE DEMOCRACY OR HELP PEOPLE.

Well, this whole story is quite interesting. The meaning of the Monroe Doctrine, we were taught, was to protect the country from European imperialism. And that’s perfectly defensive. But the actual meaning was stated very clearly by Secretary of State Lansing, Woodrow Wilson’s secretary of state. It’s a wonderful example of an accurate description — he presented a memorandum to President Wilson in which he said, here’s the real meaning of the Monroe Doctrine.

He said the Monroe Doctrine was established in our interest. The interests of other countries were an incident, not an end. So it’s entirely for our interest. But Wilson, a great exponent of self-determination, said he thought this argument was “unanswerable,” but it would be impolitic to make it public. That’s the meaning of the Monroe Doctrine. And it is. It’s exactly the way it’s been used.

This is supposed to be our hemisphere. Everybody else stay out. We didn’t have the power to implement it in 1823, but it was understood how it would work. John Quincy Adams, the great grand strategist and the intellectual author of Manifest Destiny, explained in the accredited — I think he probably wrote the Monroe Doctrine when he was secretary of state — he explained it was really directed at Cuba.

Cuba was the first foreign policy objective for the US. We wanted to take over Cuba. And the Monroe Doctrine was supposed to keep the British out. And it was discussed, and they understood that they couldn’t do it because Britain was too powerful.

But Adams explained that over time, Britain would become weaker, and the United States would become more powerful, and over time, he said, “Cuba will fall into our hands by the laws of political gravitation, the way an apple falls from the tree.” Which is exactly what happened through the nineteenth century when relations of power shifted, the United States became more powerful and was able to kick Britain out of one place after another.

In 1898, the United States invaded Cuba. The pretext was to liberate Cuba. In fact it was to conquer Cuba and prevent it from liberating itself from Spain, which it in fact was about to do. And then comes the Platt Amendment, and Guantanamo and all the rest of the story.

That’s the Monroe Doctrine. Why is it changing? It’s changing because Latin America has liberated itself. The United States is practically being kicked out of the hemisphere. That’s extremely important. For the last roughly fifteen years and for the first time in its history, the Latin American countries have begun to integrate slightly to free themselves from imperial control to face internal problems, and if you look at the hemispheric conferences, the United States is increasingly isolated.

At the Santiago conference in 2012, the OAS conference, it never reached any decisions because they have to be reached by consensus, and the US and Canada blocked every decision. The major ones were on Cuba. Everybody wanted it admitted, but the US and Canada refused. And the other was drugs. The other countries want to end this crazy US drug war which is destroying them, and the US and Canada refused.

Well, there was another conference coming up in Panama, just a couple months ago. And Obama recognized‚ or an adviser recognized, that unless he did something, the US would simply be kicked out of the hemisphere. So they moved towards normalization of relationswith Cuba. And here, it’s presented as a wonderful benign gesture, bringing Cuba out of its isolation.

Fact is, the United States is totally isolated. In the world, it’s completely isolated. The votes in the UN on the embargo are like 180–2, the United States and Israel. And in the hemisphere, it was on the verge of being tossed out. So they make the gestures that are silly — they have to say those sort of things, or end up being thrown out of the hemisphere.

And we can’t intervene at the previous levels — there’s plenty of intervention, but not at the level before. As for giving money toHonduras and Guatemala, it means giving money to murderers ruling governments that were installed by US power. The Honduras government was thrown out by military coup in 2009. This is Obama now. And they were a military government, ran a kind of a fake election, which almost nobody recognized except the United States, and it’s become a horror chamber.

If you take a look at the immigrants coming across the border, you’ll notice most of them are from Honduras. Why? Because Honduras, thanks to Obama, is a horror chamber. They’re giving money to Honduras, this military regime which has probably the worst human rights record in the hemisphere. Guatemala has been a horror story ever since 1954, when the US went in.

So that’s the history, but not the sanitized history.

 

Noam Chomsky is Institute Professor (retired) at MIT. He is the author of many books and articles on international affairs and social-political issues, and a long-time participant in activist movements.

 

http://www.salon.com/2015/07/29/noam_chomsky_the_united_states_is_totally_isolated_partner/?source=newsletter

German economics minister rushes to exploit business opportunities in Iran

Der SPD-Bundesvorsitzende Sigmar Gabriel sitzt am 17.03.2013 auf dem SPD-Landesparteitag in Salem (Mecklenburg-Vorpommern) auf dem Podium. Neben den Neuwahlen des Landesvorstands bereiten die 95 Delegierten bei dem zweitägigen Treffen die Bundestagswahl vor. Foto: Jens Büttner/dpa (Qualitäts-Wiederholung) +++(c) dpa - Bildfunk+++

By Johannes Stern
27 July 2015

Rarely in recent years have the foreign travels of a leading German politician caused such a stir as the visit earlier this month to Iran by the German Vice Chancellor and Minister for Economic Affairs Sigmar Gabriel (Social Democratic Party, SPD). With the ink barely dry on the recently-negotiated nuclear program agreement with Iran, Gabriel was already bound for Tehran in the company of a high-level business delegation.

Berlin’s foray into one of the most strategically important and resource-rich countries in the Middle East—Iran has the fourth largest oil and second largest gas reserves in the world—is part of German imperialism’s return to the world stage. Significantly, the visit took place the same week as the federal government enforced a brutal austerity program on Greece and German Foreign Minister Frank-Walter Steinmeier visited Cuba with a delegation.

Gabriel’s trip to Iran was so sudden and his related objectives so obvious that even a number of media outlets, which otherwise regularly beat the drum for a more aggressive German participation in world affairs, felt compelled to comment critically on the expedition.

The Süddeutsche Zeitung newspaper called it “embarrassing” and warned: “Now the impression has been given that Germany is mainly concerned about its business interests. Arriving late is stupid, but sometimes flying off too early is a lot more stupid.”

The Frankfurter Allgemeine Zeitung also referred to Gabriel’s trip as “quick off the mark, if not over-hasty.” The paper’s columnist wrote that it might perhaps “help German industry to once again secure a foothold in this market after the long years of sanctions.” It was, however, “an ambiguous signal” in relation to German foreign policy, according to FAZ.

Criticism of Gabriel’s delegation even came from within the government’s own ranks: “I’m worried about the declaration that Iran is one of our friends,” said Roderich Kiesewetter (Christian Democratic Union, CDU), the CDU/Christian Social Union (CSU) alliance representative in the foreign affairs committee of the Bundestag (federal parliament). He added that Iran could only be “our friend and a stability factor in the region,” when it “actually recognises Israel’s right to exist.” Former SPD parliamentarian and German-Israeli Society president Reinhold Robbe stated that Gabriel gave the impression “that Germany sets its economic interests above everything else.”

The arrogant bluster of Gabriel certainly helped to confirm this “impression.” Soon after his government plane landed at Mehrabad international airport in Tehran, he told German reporters: “Traditionally we have good relations [with Iran], and many companies want to build on existing contacts. And the chance for this will emerge when the agreement enters into force early next year. It will be the first major step, but there will certainly be many more that will have to be taken.”

The business representatives in his entourage were even less able to restrain their enthusiasm for the new opportunities opening up for the export and commodity-hungry German imperialism. President of the Association of German Chambers of Industry and Commerce (DIHK) Eric Schweitzer said, “German industry is highly regarded in Iran,” and continued: “During the reign of the Shah, Iran was Germany’s second most important export market outside Europe. Many want to follow up on that.”

DIHK head of foreign trade Volker Treier proclaimed, “The Iranian economy is geared more towards industry than one might assume. With its 80 million inhabitants and a strong industrial base, the country is predestined to be an export market for German companies.”

The German business press is also enthusiastic about the development. The monthly Manager Magazin gushed that, in addition to “a highly qualified workforce,” there are “a lot of raw materials” available in Iran. The country is seen as “a sleeping giant” that has “substantial pent-up economic demands as a result of sanctions in recent years.”

German imperialism and German capital consider the Iran nuclear agreement, brokered in part through the efforts of German Foreign Minister Frank-Walter Steinmeier, as an opportunity to build on their traditionally close relations with Iran and increase their economic and political influence across the whole region.

Die Welt writes that “the opportunities opening up for German companies in Iran are outstanding.” Relations between businesses from both countries are recognised to have “grown over decades,” and “some German companies have been involved in the heartland of the former Persian empire for more than 100 years.”

According to official sources, some 80 German companies are currently operating directly through branches in Iran, and about 1,000 other enterprises have representatives there. Among the largest German concerns on site are Henkel, Siemens and Bayer. Following the sharp decline in economic relations over recent years, the value of German exports had already increased by almost a third to €2.4 billion (US$2.6 billion) in 2014.

The DIHK now expects a doubling of German exports within the next two years to around €5 billion (US$5.5 billion). The Federation of German Industries (BDI) even assumes that German companies could be exporting goods worth more than €10 billion to Iran in the near future.

Following a joint meeting with Iranian oil minister Bijan Namdar Zanganeh on Monday, Gabriel announced that Germany and Iran will resume the operation of a joint economic commission beginning in 2016. Iranian President Hassan Rohani expressed hope that Berlin would play a “positive role” in the development of relations between the two countries and also between Europe and the entire Middle East, “just as it had done in the nuclear program negotiations.”

What Rohani and the Iranian regime describe as “positive” means in fact the complete submission of the country to the plundering of imperialist powers 35 years after the Iranian revolution.

Commenting under the headline “The Great Race,” the Süddeutsche Zeitungsuggested that Germany “is not the only country that wants a careful return to normality.” It pointed out that, although Gabriel was the “first high-ranking western politician in Iran” since the nuclear deal, several other EU foreign ministers had already paid visits to Tehran. France had already sent “a 130-strong business delegation to Iran in February 2014,” in which oil giant Total, plant builder Alstom, the Orange telecommunications group and French automakers were represented.

China is also regarded as an obvious competitor. Anton Börner, head of the BGA foreign trade association, predicts that it will probably be “difficult” for the German business community to “once again become Iran’s largest trading partner.” According to Börner, Chinese companies that have exploited the past years of sanctions “to establish themselves in Iran” would “fight to maintain their position, when the sanctions are withdrawn.”

Commenting on increasing competition from Asian countries, Volker Treier said: “Chinese and Korean companies in Iran have now taken our place in the sun.” He said the Chinese now had “a trade volume of US$50 billion in their business with Iran. We won’t be able to get near such a scale of investment.”

The fact that leading German business representatives are again claiming their right to “a place in the sun” has far-reaching historical implications. When the imperialist forces of the so-called “late emerging German nation” first aspired to achieve “a place in the sun” (words subsequently used in Chancellor Bernhard von Bülow’s address to the German parliament on December 6, 1897), the phrase mainly referred to the possession of colonies in Africa and the Middle East, and the development of a unilateral global policy which twice led to disaster in the 20th century.

As in the past, the renewed grandstanding of German imperialism on the world stage will exacerbate tensions with the US. Although not openly discussed in public, the rush of German businesses to stake claims in Iran is driven by an attempt to forestall potential American competition, which will be excluded from the country prior to the US Congress’s vote on the nuclear program agreement. An Iran dominated by German imperialism or German-led European imperialism would also be a direct geo-strategic challenge to US imperialism, which has concluded the nuclear deal primarily in order to defend its own hegemony in the region.

 

http://www.wsws.org/en/articles/2015/07/27/iran-j27.html

Post Capitalism

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Jonathan Taplin on Jul 25

The British journalist Paul Mason published a provocative except from his new book Postcapitalism in the Guardian last week. His theory is that the sharing economy is ushering in a new age.

Postcapitalism is possible because of three major changes information technology has brought about in the past 25 years. First, it has reduced the need for work, blurred the edges between work and free time and loosened the relationship between work and wages. The coming wave of automation, currently stalled because our social infrastructure cannot bear the consequences, will hugely diminish the amount of work needed — not just to subsist but to provide a decent life for all.

Second, information is corroding the market’s ability to form prices correctly. That is because markets are based on scarcity while information is abundant. The system’s defence mechanism is to form monopolies — the giant tech companies — on a scale not seen in the past 200 years, yet they cannot last. By building business models and share valuations based on the capture and privatisation of all socially produced information, such firms are constructing a fragile corporate edifice at odds with the most basic need of humanity, which is to use ideas freely.

Third, we’re seeing the spontaneous rise of collaborative production: goods, services and organisations are appearing that no longer respond to the dictates of the market and the managerial hierarchy. The biggest information product in the world — Wikipedia — is made by volunteers for free, abolishing the encyclopedia business and depriving the advertising industry of an estimated $3bn a year in revenue.

Since the 1930’s when Lord Keynes worried about a future in which we would have so much leisure time that we might not be able to create enough poets to fill our evening hours. So of course I am skeptical as most of my friends are working longer hours than 10 years ago when their every waking hour wasn’t harried by smartphones chirping.

But I do believe that Mason’s point, about the potential of Open Source technology to break up the “fragile corporate edifice” constructed by the tech monopolies that I have written about, is real. Consider the edifice that was Microsoft’s Windows operating system in 1998 when the Justice Department brought its anti-trust action. Since that time two Open Source software systems, Linux and Apache have made huge inroads into the corporate and Web server business. Both systems were constructed by hundreds of thousands of man hours of free labor contributed by geeks interested in improving the software and sharing their improvements with a large community for free. So in that sense, Mason is right that this is a post capitalist construct.

But here is the current problem with the sharing economy. It tends towards a winner take all economy.

Whether Uber ends up buying Lyft is yet to be determined, but my guess is that market will look like markets dominated by AirBnb, Instagram, Facebook, YouTube and Google. As Susie Cagle recently pointed out:

While technology has provided underlying infrastructure to spark and support new peer-to-peer network behavior, it hasn’t really changed anything about how those networks are built and owned. For example, we now have the tools and ability to disrupt the taxi industry by allowing collectives of drivers to reach customers directly — but instead, we have Lyft and Uber, multibillion dollar companies that neither offer benefits to their drivers, nor truly give them the opportunity to run their own independent businesses.

Likewise, we have the tools and ability to build collectively owned messaging and social platforms — but instead, we have Twitter and Facebook, which mediate what users can see from other users and collect personal data to better tailor advertising sales.

My concerns relate to the media and entertainment industry that we study at the USC Annenberg Innovation Lab. And in that world the possibility of using the Open Source model to build a new kind of Digital Distribution Cooperative seems very possible.

Ask yourself this question: why should YouTube take 55% of the ad revenue from a Beyonce (or any other artist) video when all they provide is the platform?

They provide no production money, no marketing support and their ad engine runs lights out on algorithms.

Imagine in today’s music business a distribution cooperative that would run something like the coops that farmer’s use (think Sunkist for orange growers). Here is how they are described.

Many marketing cooperatives operate through “pooling.” The member delivers his product to the association, which pools it with products of like grade and quality delivered by other members. After doing whatever processing is necessary, the co-op sells the products at the best price it can get and returns to the members their share of total proceeds, less marketing expenses.

In our model (much like the early days of the United Artists film distribution company formed in the 1920’s by Charlie Chaplin, Douglas Fairbanks, Mary Pickford and D.W.Griffith) the producers of music would upload their new tunes to the coop servers, do their own social marketing and probably end up getting back 85–90% of the revenues rather the 45% they get from YouTube. The coop could rent cloud space from Amazon Web Services just like Netflix and Spotify do.

All of this is possible because in the world of entertainment the artist is the brand. No one ever suggested to you, “let’s go to a Paramount movie tonight.” It is possible that we are entering a post capitalist age, but it cannot exist as long as the sharing economy is dominated by a few monopolists. Perhaps some bold experiments on the part of music artists could point the way towards a truly innovative way of using technology for the good of the artist rather than for her exploitation.

https://medium.com/@jonathantaplin/post-capitalism-f8d687d19c3

10 Brutal Ways the American Safety Net Is Being Shredded

FDR’s New Deal is in trouble in 2015.

On the 80th anniversary of the Social Security Act of 1935, which established the social security system in the United States, President Franklin Delano Roosevelt’s New Deal is on life support as the American middle class continues to be squeezed and millions of Americans struggle with poverty.

The U.S. desperately needed a New Deal 3.0 after the crash of September 2008 and a program of aggressive reforms. Instead, most of the welfare that followed the Panic of 2008 has been corporate welfare rather than programs to help America’s embattled poor and middle class. Overall, the U.S. has been moving away from the New Deal when it should be reinvigorating it. Below are 10 ways in which the New Deal (and by extension, LBJ’s Great Society) continues to be under attack in the United States.

1. Income Inequality Is Going from Bad to Worse

FDR firmly believed that capitalism cannot function well without a strong middle class, and even auto magnate Henry Ford agreed with him: Ford famously said that American workers needed to be paid a decent wage in order to be able to afford his products. And during the post-FDR America of the 1950s and 1960s, having a robust middle class was great for a variety of businesses. But in 2015—with the gains of the New Deal having been imperiled by everything from union busting to the outsourcing of millions of American jobs—income inequality in the U.S. is a huge problem. The Organization for Economic Cooperation and Development recently released a report on income inequality among OECD members and found that the U.S. was among the worst offenders. The U.S., Mexico and Turkey had some of highest income inequality of OECD countries, while Denmark, the Czech Republic, Finland, Iceland and Belgium fared much better. OECD Secretary-General Angel Gurría commented that “high inequality is bad for growth,” and he’s absolutely right.

2. Republicans Yearn for Social Security Privatization

Although President Dwight D. Eisenhower was a Republican, he supported elements of the New Deal and saw the need for a strong social safety net: in fact, Eisenhower expanded social security, and in 1954, he bluntly asserted that any oligarchs who would “attempt to abolish social security, unemployment insurance and eliminate labor law and farm programs” were “stupid.” But in the 21st century, Republicans have been going after social security with a vengeance. The privatization of social security was proposed by President George W. Bush in 2004, and far-right Republicans, the Tea Party and wingnut lobbying groups like the Club for Growth have been doubling down on the idea of privatizing social security. GOP presidential hopeful Jeb Bush called for social security privatization at a town hall meeting in New Hampshire in June, and he also favors raising the social security retirement age to 69 or 70, which would be especially bad for blue-collar workers who have spent decades in physically demanding jobs.

3. The 1% Continue to Dodge Taxes

FDR had no problem asking the ultra-wealthy to pay their fair share of taxes: the U.S.’ top marginal tax rate rose to 94% in the early 1940s, when the country entered World War II. Taxes for the ultra-rich didn’t go down much under Republican Eisenhower, who lowered the top tax rate to 91% in the 1950s—and after that rate decreased to 28% under President Reagan, it rose to 39.6% under President Clinton and decreased to 35% under President George W. Bush. Looking at the last 80 years of tax history, one sees a clear pattern: the American middle class does much better when the 1% pay their fair share of taxes. And even though the Tea Party tries to paint Barack Obama as a soak-the-rich president, their assertion is laughable because Obama extended the Bush tax cuts and hasn’t been nearly as forceful as FDR or Eisenhower when it comes to taxing the 1%.

4. The Minimum Wage Is Much Too Low

One of the important elements of the New Deal was FDR’s strong belief in a national minimum wage. FDR began to push for a federal minimum wage after taking office in January 1933, saying, “By living wages, I mean more than a bare subsistence level. I mean the wages of a decent living.” And Congress enacted one in 1938, when the U.S.’ first federal minimum wage was set at 25 cents per hour. But in recent years, the federal minimum wage (which was raised to $7.25 an hour in 2009) has not kept up with inflation. Economist Robert Reich has proposed raising the federal minimum wage to $15 an hour, which he sees as a crucial part of economic recovery. And in some cities, including Los Angeles and Seattle, city councils have raised their local minimum wages to that amount. But at the federal level, an increase to even $10.10 an hour (President Obama’s proposal) is a steep uphill climb when both houses of Congress are dominated by far-right Republicans who hate the poor with a passion.

5. Infrastructure Continues to Deteriorate

The New Deal was great for the U.S.’ infrastructure thanks to programs that built or strengthened everything from roads to water and electric systems to municipal power plants. But in recent years, the American infrastructure has been seriously decaying—and a major wake-up call came on May 12, when an Amtrak train derailed in Philadelphia and eight passengers were killed. But the nation’s railways are only one of the ways in which the U.S.’ infrastructure has deteriorated. According to Ray LaHood (former secretary of transportation for the Obama Administration), 70,000 bridges in the U.S. are now structurally deficient. That is in addition to all the roads that are in desperate need of repair. And when it comes to high-speed rail travel, the U.S. lags way behind Europe (where one can get from London to Brussels in just under two hours or from Madrid to Barcelona in less than three hours).

6. Union Representation Has Reached Historic Lows 

One of the most important pieces of New Deal-era legislation was the National Labor Relations Act of 1935, a.k.a. the Wagner Act, which did a lot to advance labor unions in the U.S.: by the mid-1950s, around 35% of America’s labor force was unionized. But according to the Bureau of Labor Statistics (BLS), a mere 11.1% of salaried U.S. workers (factoring in both the public and private sectors) were union members in 2014. Among private-sector workers, the number was a paltry 6.6%. And the decline of unions has been encouraged bad working conditions: according to the Economic Policy Institute, executives at large companies earned, on average, 296 times as much as their average workers in 2013 compared to only 20 times as much in 1965. But as much as labor unions have declined in the U.S., Wisconsin Gov. Scott Walker (a GOP presidential hopeful for 2016) and his fellow Republicans would like to see them decline even more. Walker recently set a disturbing precedent in that state when he supported anti-union legislation that prohibits private-sector unions from requiring members to pay union dues; Walker has, in essence, made Wisconsin a northern “right to work” state. And it’s safe to say that Walker, based on his actions in Wisconsin, would be among the most anti-union presidents in U.S. history.

7. “Too Big to Fail” Is Bigger Than Ever

Unlike many of today’s extreme-right Republicans and neoliberal corporatist Democrats, FDR was not afraid of offending the banking sector. FDR said of the banksters of the 1930s, “They are unanimous in their hate for me, and I welcome their hatred.” One of the New Deal achievements that banksters detested was the Glass-Steagall Act of 1933, which mandated a strict separation of commercial and investment banking and was designed to prevent another major Wall Street calamity like the crash of 1929. Glass-Steagall served the U.S. well for many years: although there were some tough recessions in the mid-1970s, early 1980s and early 1990s, none of them cut as deep as the Great Depression. But the repeal of Glass-Steagall in 1999 was a major blow to the New Deal and paved the way for the crash of September 2008, clearly the most devastating financial event in the U.S. since 1929. Unfortunately, there was no real banking reform after the 2008 calamity, and as Vermont Sen. Bernie Sanders points out, JPMorgan Chase, Bank of America and Wells Fargo are now “80% larger” than they were in 2007. Critics of the banking sector propose bringing back Glass-Steagall, including Reich (who warns that another major Wall Street crash “is not unlikely”) and Massachusetts Sen. Elizabeth Warren. And Sanders has proposed New Deal-like legislation that would break up the U.S.’ largest banks.

8. Medicare, An Expansion of the New Deal, Is a Major GOP Target

Medicare, which established a single-payer health care system for Americans 65 and older, was not part of the New Deal per se: Medicare came into being in 1965 as part of Democratic President Lyndon B. Johnson’s Great Society (which was very much an extension of the New Deal). And the program proved to be so popular that even Republican President Richard Nixon (who was considered an arch-conservative in his day) expanded Medicare in both 1969 and 1972. But these days, far-right GOP wingnuts in the House of Representatives—especially Rep. Paul Ryan, chairman of the House Ways and Means Committee—have repeatedly called for drastic Medicare cuts and for replacing traditional Medicare with a privatized voucher program. In June, a variety of pro-Medicare groups (including the Alliance for Retired Americans and the Medicare Rights Center) sent a joint letter to the House criticizing representatives who wanted to cut $700 million from the Medicare program.

9. Home Ownership Is Becoming Increasingly Difficult for Many Americans, and the Rent Is Too Damn High

Before the New Deal, five-year or 10-year mortgages were the norm in the U.S., and were unaffordable for most Americans. But FDR saw home ownership as a crucial part of building a strong middle class: between the Federal Housing Administration, the Home Owners’ Loan Corporation and the introduction of 30-year fixed-rate mortgages—all of which came about under FDR—home ownership in the U.S. gradually increased. According to the U.S. Census Bureau, home ownership in the U.S. went from 45% in 1920 and 47% in 1930 to 55% in 1950, 61% in 1960 and 62% in 1970. But the Crash of 2008 has been terrible for American homeowners, resulting in countless foreclosures, and banksters have been allowed to acquire and rent out many foreclosed homes. The private equity firm Blackstone Group had, as of late 2013, bought almost 40,000 homes in the U.S. in order to rent them. To make matters worse, all those post-2008 foreclosures have caused rents to skyrocket all over the country. And the more one pays in rent, the harder it is to save for a down payment on a home. To quote Jimmy McMillan, the rent is too damn high.

10. Wingnut Attacks on Food Stamps Never End

The American food stamps program started on a pilot basis under FDR’s secretary of agriculture, Henry A. Wallace, in 1939 but became permanent when LBJ signed the Food Stamp Act of 1964 into law as part of his Great Society. In recent years, the U.S.’ economic decline has been so painful that, according to the U.S. Department of Agriculture, the number of Americans poor enough to quality for food stamps was 46.2 million in 2014 compared to only 17 million in 2000. Food stamps, as envisioned under the New Deal and the Great Society, are designed to be a stepping stone for the poor—and the benefits (which presently average $127.91 per month per person, according to USDA figures) are hardly lavish. But that has not prevented Republicans in Congress from repeatedly proposing dramatic food stamp cuts during the Great Recession. And in Wisconsin, Gov. Scott Walker has been trying to punish and shame food stamp recipients by subjecting them to drug-testing.

Alex Henderson’s work has appeared in the L.A. Weekly, Billboard, Spin, Creem, the Pasadena Weekly and many other publications. Follow him on Twitter @alexvhenderson.

http://www.alternet.org/economy/10-brutal-ways-american-safety-net-being-shredded?akid=13331.265072.iZeSe-&rd=1&src=newsletter1039872&t=1

How to make $7 billion in 45 minutes

Jeff Bezos, CEO and founder of Amazon, at the introduction of the new Amazon Kindle Fire HD and Kindle Paperwhite personal devices, in Santa Monica, Calif., Thursday, Sept. 6, 2012. (AP Photo/Reed Saxon)

25 July 2015

On Thursday, Amazon, the online retail giant, announced that, contrary to analysts’ predictions and after months of financial losses, it had turned a profit in the second quarter.

The stock market responded with euphoria. Amazon’s share price surged by 18 percent in a single day, adding $40 billion to the company’s market capitalization. With 154,000 employees, Amazon overnight became the world’s largest retailer by market capitalization, surpassing Wal-Mart, with 2.2 million employees.

The market response was conditioned by the fact that stocks have been registering significant losses in the US in the past week, with earnings reports of major companies falling short of expectations amidst growing signs of slump in the United States and internationally.

These include a continuing sharp fall in the prices of commodities such as oil and iron ore, along with declining growth rates in China and a number of emerging markets, and ongoing stagnation in Europe. The International Monetary Fund earlier this month predicted the worst year for global growth since 2009, and last week the US Federal Reserve Board, in its semiannual Monetary Policy Report, painted a grim picture of the state of the US economy.

The signs are mounting—the stock panic in China, extreme volatility on US markets—that the disconnect between a stagnant real economy and a booming stock market, which has prevailed in the US since the beginning of the stock market recovery in the spring of 2009, may well be setting the stage for a new financial meltdown even greater than that of 2008.

In the meantime, multibillionaires such as Amazon CEO Jeffrey Bezos continue to milk the economy. For Bezos, Thursday’s trading was, to put it mildly, lucrative. He made $7 billion in 45 minutes.

Now the seventh-richest man in the world, Bezos saw his wealth surge to $43 billion. For all the hype surrounding the company he founded 20 years ago, Bezos got his billions by sweating his workers, monopolizing the market and capitalizing on a decades-long financial bubble.

Employees in Amazon’s fulfillment centers are paid $11-12 per hour. They are subject to grueling and humiliating conditions. They are regularly searched and foremen record how many times they use the restroom.

A 2011 report in a Pennsylvania newspaper noted that the company would not open the doors to ventilate one of its warehouses even when temperatures reached 110 degrees, for fear of theft. When workers started passing out, the company stationed ambulances outside for them.

Amazon now accounts for a bigger share of online sales than the next dozen competitors. It has used its enormous market power to strong-arm small publishers and authors, recently announcing unilaterally that it will start paying authors of e-books by the page view, instead of by the download, resulting in sharply reduced commissions. Bezos purchased the Washington Post with $250 million of his personal funds in 2013.

It is worth making some comparisons. The amount of money Bezos made Thursday is:

* Equivalent to what 300,000 US workers earning the median income earn in an entire year.

* Forty-seven times larger than the annual budget for the National Endowment for the Arts.

* Three hundred and eighteen times the Detroit Water and Sewerage Department’s deficit, which is being addressed by shutting off water to tens of thousands of households.

* More than two-thirds of the annual funding of America’s free and reduced-price school lunch program.

* Enough to provide every one of America’s 15.8 million hungry children $450 per year in food assistance.

The accumulation of such personal wealth amid the vast social misery that prevails in the United States can only be called obscene. But such an assessment would be news to the US media, which salutes every milestone hit by the Dow or NASDAQ with rapture and depicts the members of America’s billionaire oligarchy as geniuses and innovators.

There is something deeply dysfunctional about an economic system in which the announcement of a $92 million profit—the first-ever quarterly profit reported by Amazon—triggers $40 billion in share purchases in a matter of minutes.

The continual diversion of vast amounts of money into the stock market is a symptom of an underlying economic crisis of immense proportions. Every dollar that goes into speculating on a stock like Amazon, with a price-to-earnings ratio of nearly 1,000, is a dollar not used for productive investment.

While the real economy in the US has grown by only 13 percent since the depth of the recession in 2009, all three major American stock indexes have more than tripled. This year, NASDAQ for the first time surpassed the heights it reached just before the collapse of the dot.com bubble in 2000.

Meanwhile, the US economy shrank at an annual rate of 0.2 percent in the first quarter of this year. The falloff in economic activity was led by a collapse in business fixed investment, which fell by 2 percent. Investment in nonresidential structures fell by 18 percent.

The sharp fall in investment came despite the fact that US corporations are hoarding some $1.4 trillion in cash and similar assets, the largest such figure on record, amassed as a result of years of record profits amid falling wages and an influx of cheap money from the world’s central banks.

Instead of using this cash to hire workers and build factories, corporations are diverting it to raise dividends, buy back shares, hike executive pay and carry out mergers and acquisitions, all at record levels. Earlier this year, the Wall Street Journal reported that major US corporations in 2013 spent 36 percent of their operating cash to buy back their own shares, more than double the rate a decade before.

This speculative frenzy has been driven by six years of near-zero interest rates and money printing by the Federal Reserve, whose policies underlie the enormous overvaluation of companies such as Amazon.

The performance of the US stock market has decoupled from economic growth to such an extent that any indication of genuine recovery in the real economy generally prompts a market sell-off, while signs of economic slump tend to send the markets higher.

This state of affairs is an expression of the crisis and decline of American capitalism, which has for nearly four decades responded to declining profit margins in manufacturing by turning ever more decisively to financial parasitism.

The US ruling class and the capitalist system over which it presides have no answers to the social crisis in America. For every problem, they have the same solution: impoverish workers and use the money to gamble on the stock market. If workers don’t like it, there are always the police to keep them in line.

Andre Damon

 

http://www.wsws.org/en/articles/2015/07/25/pers-j25.html

Donald Trump: The ugly face of capitalist politics

trump-hair

By Patrick Martin
24 July 2015

The rise of billionaire Donald Trump to a leading position in the Republican presidential race is proof that scum floats to the top of the pool. But Trump is not an aberration, or a distraction, or a “disgrace,” as some media commentators have claimed—except in the sense that American capitalist politics as a whole is a disgrace.

The Des Moines Register lambasted Trump in an editorial calling for his withdrawal from the presidential race, calling him “a feckless blowhard who can generate headlines, name recognition and polling numbers not by provoking thought, but by provoking outrage.” An appropriate description, but one that applies to all the other capitalist politicians in the race for president, to a greater or lesser degree. Not one of them, Trump included, tells the truth to working people or has any genuine mass following.

Trump personifies the backwardness and decay of the American political system and the American financial aristocracy. He first came to prominence in the real estate boom that followed the near-bankruptcy of New York City in 1975. After the city was bailed out through massive concessions by the unions, including the looting of workers’ pension funds to fuel speculative investment, the conditions were created for the transformation of parts of Manhattan into gated communities for the extremely rich.

The scion of a real estate family of middling wealth, Trump cashed in through investments in luxury apartments for ultra-high-net-worth individuals, as in his eponymous Trump Tower. A 91-page financial report filed with the Federal Election Commission this week confirms that the self-styled “master builder” is mainly engaged in servicing the vices of the super-rich, specializing in casinos, golf courses and luxury resorts. He is a parasite on the parasites. There is virtually no productive activity associated with the 515 enterprises in which he is involved, including 391 bearing his name.

In the past two decades, Trump has built his wealth by promoting himself through a variety of media ventures, beginning with “The Apprentice.” The dubious character of his claim to a $10 billion fortune is demonstrated by his valuation of his “brand” alone at $3.2 billion. But such valuations are not out of place in the Wall Street of 2015, where financial speculation and skullduggery are preparing an even greater crash than in 2008.

Trump’s egomania is coupled with broad, undifferentiated ignorance of politics and issues of state. He recently told an interviewer, explaining his reluctance to read books, “One of the problems with foreign policy is that it changes on a daily basis.”

That said, Trump has a sharp eye for the main chance and a ruthless grasp of the nature of his opponents, both Republican and Democratic. His public announcement of the cellphone number of Senator Lindsey Graham was not just a publicity stunt, but a demonstration that he has taken the measure of the South Carolina Republican. Graham denounced Trump this week as a “jackass,” but was rather more conciliatory when he called the billionaire a few years ago pleading for a campaign contribution and assistance in getting back in the good graces of Fox News.

Trump was equally cutting (and accurate) in his assessment of the likely Democratic nominee, noting Hillary Clinton’s maneuvers in response to the challenge from Vermont Senator Bernie Sanders. “Hillary is going way left, and I sort of laugh because I know Hillary very well,” he told the Hill. “The interesting part about Hillary is that her donors are all the hedge fund guys and the business guys and the real estate guys. And they’re all saying, ‘Do you think she means it?’ And I say, ‘Of course she doesn’t mean it — you know her.’”

The combination of Trump’s celebrity and his presumed wealth, as well as the crudeness of his bigoted and right-wing pronouncements, have propelled him, at least for now, into the leadership of the Republican presidential field, with 24 percent support, compared to 13 percent and 12 percent respectively for Wisconsin Governor Scott Walker and former Florida Governor Jeb Bush. His standing is a measure of the insignificance of his opponents and the lack of popular enthusiasm for the array of reactionaries and political hucksters who make up the Republican field.

The demographics of his support, as reported in recent polls, show Trump’s likely voters as generally younger, lower income and less ideologically conservative than the Tea Party faction that has dominated Republican Party primaries in recent years. By fomenting anti-immigrant bigotry, Trump is seeking to make an appeal to the latter ultra-right layer as well.

There is no reason to think that Trump believes anything he says about any political issue. He has been for and against universal health care, abortion, expanding Social Security benefits, and tax increases on the rich. He contributed to the political campaigns of Hillary Clinton and at one point pronounced himself a Democrat before shifting to the Republicans in the past decade.

Trump is thus no different than the typical American capitalist politician or CEO, albeit more cartoonish. But he can hardly be said to be the most disgusting political figure in a country whose president publicly boasts of his assassinations, listing the men he has killed with evident relish, and whose rivals include the aforementioned Lindsey Graham, who recently threatened that he would authorize drone missile strikes on any American who even thinks of joining ISIS.

As for the faux media outrage over Trump—from newspapers and networks that have happily profited from the billionaire’s enterprises—what do they offer as a counterpoint? New York Times columnist Frank Bruni is a case in point: presenting the self-confessed Vietnam War mass murderer, former Senator Robert Kerrey, as the voice of moral condemnation.

One study showed that the media itself is the main generator of Trump’s political rise. Before his announcement of candidacy, the billionaire was mentioned in only 4 percent of articles covering the Republican campaign. From the day he entered the race, this figure shot up to 30 percent and has remained at 20 to 30 percent ever since.

 

http://www.wsws.org/en/articles/2015/07/24/trum-j24.html

How China and Russia Are Running Rings Around Washington 

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The Eurasian Big Bang 

By Pepe Escobar

Let’s start with the geopolitical Big Bang you know nothing about, the one that occurred just two weeks ago. Here are its results: from now on, any possible future attack on Iran threatened by the Pentagon (in conjunction with NATO) would essentially be an assault on the planning of an interlocking set of organizations — the BRICS nations (Brazil, Russia, India, China, and South Africa), the SCO (Shanghai Cooperation Organization), the EEU (Eurasian Economic Union), the AIIB (the new Chinese-founded Asian Infrastructure Investment Bank), and the NDB (the BRICS’ New Development Bank) — whose acronyms you’re unlikely to recognize either.  Still, they represent an emerging new order in Eurasia.

Tehran, Beijing, Moscow, Islamabad, and New Delhi have been actively establishing interlocking security guarantees. They have been simultaneously calling the Atlanticist bluff when it comes to the endless drumbeat of attention given to the flimsy meme of Iran’s “nuclear weapons program.”  And a few days before the Vienna nuclear negotiations finally culminated in an agreement, all of this came together at a twin BRICS/SCO summit in Ufa, Russia — a place you’ve undoubtedly never heard of and a meeting that got next to no attention in the U.S.  And yet sooner or later, these developments will ensure that the War Party in Washington and assorted neocons (as well as neoliberalcons) already breathing hard over the Iran deal will sweat bullets as their narratives about how the world works crumble.

The Eurasian Silk Road

With the Vienna deal, whose interminable build-up I had the dubious pleasure of following closely, Iranian Foreign Minister Javad Zarif and his diplomatic team have pulled the near-impossible out of an extremely crumpled magician’s hat: an agreement that might actually end sanctions against their country from an asymmetric, largely manufactured conflict.

Think of that meeting in Ufa, the capital of Russia’s Bashkortostan, as a preamble to the long-delayed agreement in Vienna. It caught the new dynamics of the Eurasian continent and signaled the future geopolitical Big Bangness of it all. At Ufa, from July 8th to 10th, the 7th BRICS summit and the 15th Shanghai Cooperation Organization summit overlapped just as a possible Vienna deal was devouring one deadline after another.

Consider it a diplomatic masterstroke of Vladmir Putin’s Russia to have merged those two summits with an informal meeting of the Eurasian Economic Union (EEU). Call it a soft power declaration of war against Washington’s imperial logic, one that would highlight the breadth and depth of an evolving Sino-Russian strategic partnership. Putting all those heads of state attending each of the meetings under one roof, Moscow offered a vision of an emerging, coordinated geopolitical structure anchored in Eurasian integration. Thus, the importance of Iran: no matter what happens post-Vienna, Iran will be a vital hub/node/crossroads in Eurasia for this new structure.

If you read the declaration that came out of the BRICS summit, one detail should strike you: the austerity-ridden European Union (EU) is barely mentioned. And that’s not an oversight. From the point of view of the leaders of key BRICS nations, they are offering a new approach to Eurasia, the very opposite of the language of sanctions.

Here are just a few examples of the dizzying activity that took place at Ufa, all of it ignored by the American mainstream media. In their meetings, President Putin, China’s President Xi Jinping, and Indian Prime Minister Narendra Modi worked in a practical way to advance what is essentially a Chinese vision of a future Eurasia knit together by a series of interlocking “new Silk Roads.” Modi approved more Chinese investment in his country, while Xi and Modi together pledged to work to solve the joint border issues that have dogged their countries and, in at least one case, led to war.

The NDB, the BRICS’ response to the World Bank, was officially launched with $50 billion in start-up capital. Focused on funding major infrastructure projects in the BRICS nations, it is capable of accumulating as much as $400 billion in capital, according to its president, Kundapur Vaman Kamath. Later, it plans to focus on funding such ventures in other developing nations across the Global South — all in their own currencies, which means bypassing the U.S. dollar.  Given its membership, the NDB’s money will clearly be closely linked to the new Silk Roads. As Brazilian Development Bank President Luciano Coutinho stressed, in the near future it may also assist European non-EU member states like Serbia and Macedonia. Think of this as the NDB’s attempt to break a Brussels monopoly on Greater Europe. Kamath even advanced the possibility of someday aidingin the reconstruction of Syria.

You won’t be surprised to learn that both the new Asian Infrastructure Investment Bank and the NDB are headquartered in China and will work to complement each other’s efforts. At the same time, Russia’s foreign investment arm, the Direct Investment Fund (RDIF), signed a memorandum of understanding with funds from other BRICS countries and so launched an informal investment consortium in which China’s Silk Road Fund and India’s Infrastructure Development Finance Company will be key partners.

Full Spectrum Transportation Dominance

On the ground level, this should be thought of as part of the New Great Game in Eurasia. Its flip side is the Trans-Pacific Partnership in the Pacific and the Atlantic version of the same, the Transatlantic Trade and Investment Partnership, both of which Washington is trying to advance to maintain U.S. global economic dominance. The question these conflicting plans raise is how to integrate trade and commerce across that vast region. From the Chinese and Russian perspectives, Eurasia is to be integrated via a complex network of superhighways, high-speed rail lines, ports, airports, pipelines, and fiber optic cables. By land, sea, and air, the resulting New Silk Roads are meant to create an economic version of the Pentagon’s doctrine of “Full Spectrum Dominance” — a vision that already has Chinese corporate executives crisscrossing Eurasia sealing infrastructure deals.

For Beijing — back to a 7% growth rate in the second quarter of 2015 despite a recent near-panic on the country’s stock markets — it makes perfect economic sense: as labor costs rise, production will be relocated from the country’s Eastern seaboard to its cheaper Western reaches, while the natural outlets for the production of just about everything will be those parallel and interlocking “belts” of the new Silk Roads.

Meanwhile, Russia is pushing to modernize and diversify its energy-exploitation-dependent economy. Among other things, its leaders hope that the mix of those developing Silk Roads and the tying together of the Eurasian Economic Union — Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan — will translate into myriad transportation and construction projects for which the country’s industrial and engineering know-how will prove crucial.

As the EEU has begun establishing free trade zones with India, Iran, Vietnam, Egypt, and Latin America’s Mercosur bloc (Argentina, Brazil, Paraguay, Uruguay, and Venezuela), the initial stages of this integration process already reach beyond Eurasia. Meanwhile, the SCO, which began as little more than a security forum, is expanding and moving into the field of economic cooperation.  Its countries, especially four Central Asian “stans” (Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan) will rely ever more on the Chinese-driven Asia Infrastructure Investment Bank (AIIB) and the NDB. At Ufa, India and Pakistan finalized an upgrading process in which they have moved from observers to members of the SCO. This makes it an alternative G8.

In the meantime, when it comes to embattled Afghanistan, the BRICS nations and the SCO have now called upon “the armed opposition to disarm, accept the Constitution of Afghanistan, and cut ties with Al-Qaeda, ISIS, and other terrorist organizations.” Translation: within the framework of Afghan national unity, the organization would accept the Taliban as part of a future government. Their hopes, with the integration of the region in mind, would be for a future stable Afghanistan able to absorb more Chinese, Russian, Indian, and Iranian investment, and the construction — finally! — of a long-planned, $10 billion, 1,420-kilometer-long Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline that would benefit those energy-hungry new SCO members, Pakistan and India. (They would each receive 42% of the gas, the remaining 16% going to Afghanistan.)

Central Asia is, at the moment, geographic ground zero for the convergence of the economic urges of China, Russia, and India. It was no happenstance that, on his way to Ufa, Prime Minister Modi stopped off in Central Asia.  Like the Chinese leadership in Beijing, Moscow looks forward (as a recent document puts it) to the “interpenetration and integration of the EEU and the Silk Road Economic Belt” into a “Greater Eurasia” and a “steady, developing, safe common neighborhood” for both Russia and China.

And don’t forget Iran. In early 2016, once economic sanctions are fully lifted, it is expected to join the SCO, turning it into a G9. As its foreign minister, Javad Zarif, made clear recently to Russia’s Channel 1 television, Tehran considers the two countries strategic partners. “Russia,” he said, “has been the most important participant in Iran’s nuclear program and it will continue under the current agreement to be Iran’s major nuclear partner.” The same will, he added, be true when it comes to “oil and gas cooperation,” given the shared interest of those two energy-rich nations in “maintaining stability in global market prices.”

Got Corridor, Will Travel

Across Eurasia, BRICS nations are moving on integration projects. A developing Bangladesh-China-India-Myanmar economic corridor is a typical example. It is now being reconfigured as a multilane highway between India and China. Meanwhile, Iran and Russia are developing a transportation corridor from the Persian Gulf and the Gulf of Oman to the Caspian Sea and the Volga River. Azerbaijan will be connected to the Caspian part of this corridor, while India is planning to use Iran’s southern ports to improve its access to Russia and Central Asia. Now, add in a maritime corridor that will stretch from the Indian city of Mumbai to the Iranian port of Bandar Abbas and then on to the southern Russian city of Astrakhan. And this just scratches the surface of the planning underway.

Years ago, Vladimir Putin suggested that there could be a “Greater Europe” stretching from Lisbon, Portugal, on the Atlantic to the Russian city of Vladivostok on the Pacific. The EU, under Washington’s thumb, ignored him. Then the Chinese started dreaming about and planning new Silk Roads that would, in reverse Marco Polo fashion, extend from Shanghai to Venice (and then on to Berlin).

Thanks to a set of cross-pollinating political institutions, investment funds, development banks, financial systems, and infrastructure projects that, to date, remain largely under Washington’s radar, a free-trade Eurasian heartland is being born. It will someday link China and Russia to Europe, Southwest Asia, and even Africa. It promises to be an astounding development. Keep your eyes, if you can, on the accumulating facts on the ground, even if they are rarely covered in the American media. They represent the New Great — emphasis on that word — Game in Eurasia.

Location, Location, Location

Tehran is now deeply invested in strengthening its connections to this new Eurasia and the man to watch on this score is Ali Akbar Velayati. He is the head of Iran’s Center for Strategic Research and senior foreign policy adviser to Supreme Leader Ayatollah Khamenei. Velayati stresses that security in Asia, the Middle East, North Africa, Central Asia, and the Caucasus hinges on the further enhancement of a Beijing-Moscow-Tehran triple entente.

As he knows, geo-strategically Iran is all about location, location, location. That country offers the best access to open seas in the region apart from Russia and is the only obvious east-west/north-south crossroads for trade from the Central Asian “stans.” Little wonder then that Iran will soon be an SCO member, even as its “partnership” with Russia is certain to evolve. Its energy resources are already crucial to and considered a matter of national security for China and, in the thinking of that country’s leadership, Iran also fulfills a key role as a hub in those Silk Roads they are planning.

That growing web of literal roads, rail lines, and energy pipelines, asTomDispatch has previously reported, represents Beijing’s response to the Obama administration’s announced “pivot to Asia” and the U.S. Navy’s urge to meddle in the South China Sea. Beijing is choosing to project power via a vast set of infrastructure projects, especially high-speed rail lines that will reach from its eastern seaboard deep into Eurasia. In this fashion, the Chinese-built railway from Urumqi in Xinjiang Province to Almaty in Kazakhstan will undoubtedly someday be extended to Iran and traverse that country on its way to the Persian Gulf.

A New World for Pentagon Planners

At the St. Petersburg International Economic Forum last month, Vladimir Putin told PBS’s Charlie Rose that Moscow and Beijing had always wanted a genuine partnership with the United States, but were spurned by Washington. Hats off, then, to the “leadership” of the Obama administration. Somehow, it has managed to bring together two former geopolitical rivals, while solidifying their pan-Eurasian grand strategy.

Even the recent deal with Iran in Vienna is unlikely — especially given the war hawks in Congress — to truly end Washington’s 36-year-long Great Wall of Mistrust with Iran. Instead, the odds are that Iran, freed from sanctions, will indeed be absorbed into the Sino-Russian project to integrate Eurasia, which leads us to the spectacle of Washington’s warriors, unable to act effectively, yet screaming like banshees.

NATO’s supreme commander Dr. Strangelove, sorry, American General Philip Breedlove, insists that the West must create a rapid-reaction force — online — to counteract Russia’s “false narratives.” Secretary of Defense Ashton Carter claims to be seriously considering unilaterally redeploying nuclear-capable missiles in Europe. The nominee to head the Joint Chiefs of Staff, Marine Commandant Joseph Dunford, recently directly labeled Russia America’s true “existential threat”; Air Force General Paul Selva, nominated to be the new vice chairman of the Joint Chiefs, seconded that assessment, using the same phrase and putting Russia, China and Iran, in that order, as more threatening than the Islamic State (ISIS). In the meantime, Republican presidential candidates and a bevy of congressional war hawks simply shout and fume when it comes to both the Iranian deal and the Russians.

In response to the Ukrainian situation and the “threat” of a resurgent Russia (behind which stands a resurgent China), a Washington-centric militarization of Europe is proceeding apace. NATO is now reportedly obsessed with what’s being called “strategy rethink” — as in drawing up detailed futuristic war scenarios on European soil. As economist Michael Hudson has pointed out, even financial politics are becoming militarized and linked to NATO’s new Cold War 2.0.

In its latest National Military Strategy, the Pentagon suggests that the risk of an American war with another nation (as opposed to terror outfits), while low, is “growing” and identifies four nations as “threats”: North Korea, a case apart, and predictably the three nations that form the new Eurasian core: Russia, China, and Iran. They are depicted in the document as “revisionist states,” openly defying what the Pentagon identifies as “international security and stability”; that is, the distinctly un-level playing field created by globalized, exclusionary, turbo-charged casino capitalism and Washington’s brand of militarism.

The Pentagon, of course, does not do diplomacy. Seemingly unaware of the Vienna negotiations, it continued to accuse Iran of pursuing nuclear weapons. And that “military option” against Iran is never off the table.

So consider it the Mother of All Blockbusters to watch how the Pentagon and the war hawks in Congress will react to the post-Vienna and — though it was barely noticed in Washington — the post-Ufa environment, especially under a new White House tenant in 2017.

It will be a spectacle.  Count on it.  Will the next version of Washington try to make it up to “lost” Russia or send in the troops? Will it contain China or the “caliphate” of ISIS? Will it work with Iran to fight ISIS or spurn it? Will it truly pivot to Asia for good and ditch the Middle East or vice-versa? Or might it try to contain Russia, China, and Iran simultaneously or find some way to play them against each other?

In the end, whatever Washington may do, it will certainly reflect a fear of the increasing strategic depth Russia and China are developing economically, a reality now becoming visible across Eurasia. At Ufa, Putin told Xi on the record: “Combining efforts, no doubt we [Russia and China] will overcome all the problems before us.”

Read “efforts” as new Silk Roads, that Eurasian Economic Union, the growing BRICS block, the expanding Shanghai Cooperation Organization, those China-based banks, and all the rest of what adds up to the beginning of a new integration of significant parts of the Eurasian land mass. As for Washington, fly like an eagle? Try instead: scream like a banshee.

Pepe Escobar is the roving correspondent for Asia Times, an analyst for RTand Sputnik, and a TomDispatch regular. His latest book is Empire of Chaos. Follow him on Facebook by clicking here.

Copyright 2015 Pepe Escobar

 

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