Category Archives: Economy/Economics

Failure of Trump Tax Cuts

For President Donald J. Trump, there is only one goal in life – making money. Lowering taxes gives corporations and individuals more money; therefore, lower taxes must be beneficial. The constant self-serving references to his management of the economy are meaningless – examining President Trump’s essential thrusts for invigorating an already invigorated economy reveals contradictions in his Taxation Policies.

Reducing Income Taxes

President Trump signed the “Tax Cuts and Jobs Act” into law on December 22, 2017. His belief that reducing income tax rates automatically advances the economy is a shibboleth; a simple analysis exposes the fallacy.

Some economists find subjective reasons for why lower income tax rates benefit the economy. Objectively, income tax rates only determine the transfer of money between government and taxpayers. Neither direction, up or down, adds or subtracts money to the economic system nor allows more or less available spending to the economy; purchasing power stays the same, which means the total purchases of goods and services remain the same. One exception – unlike the consumer who cannot accumulate vast funds for sizable investments, the government can temporarily postpone consumer spending, aggregate billions of dollars, and channel these funds into huge projects that add to the Gross Domestic Product (GDP).

As one example, the government uses an accumulation of taxes to initiate construction projects. The suppliers to the projects hire workers, and the total wages paid the workers almost matches the taxes raised for the effort. Spending by the new wage earners ripples through the economy, and, in its final appearance, almost matches the reduced consumer spending of the taxed individuals. Consumer spending stays about the same, but money circulates through other channels. Employment, production (new constructions), and GDP increase — give one advantage to tax increases.

Individual workers and taxpayers benefit from tax cuts; however, stimulating the entire economy by income tax breaks is a psychological phenomenon. The exaggerations, promises, and optimism generated by tax breaks fashion a more optimistic public that incorrectly assumes they stimulate additional spending to already combined consumer and government spending. Creeping into the debate are other false assumptions — those who have excess funds will purchase domestic goods, invest, and stimulate growth. Not considered is that individuals might purchase imports, invest in speculative ventures that only churn money, and decrease available purchasing power in the domestic economy. The latter seems to have been one result from the tax cuts.

New York Times, March 6, 2018, “In Blow to Trump, America’s Trade Deficit in Goods Hits Record $891 Billion”.

Money from the tax cuts helped Americans buy more imported goods than ever in 2018. In addition, to finance the tax cuts, the government needed to borrow more dollars, some of which came from foreign investors.

If those who protest vociferously against the ever increasing government debt and its burden to future generations want to ameliorate their children’s problems, why don’t they pay their fair share of taxes now, which will lower the government debt and prevent higher taxes for their descendants in the future?

Overhauling Corporate Taxes

Granted that overhauling an antiquated corporate tax structure could be advantageous to the economy. However, is it necessary for an economy that, despite supposed elevated corporate taxes, achieved great success, which included low unemployment and high corporate profits? Why fix something that was not broken and had no indication of being disrupted? If lowering corporation tax rates promoted more exports and investment, then its value is apparent. Has that happened? Analysis, statistics, and several charts answer the question.

Corporations already paid less than 21% in taxes.

In 2012, among large corporations that met that $10 million in assets threshold, 42.3% paid no federal income taxes after tax credits. Among profitable large companies, 19.5% paid no federal income taxes. The average effective tax rate among the profitable large corporations was 16.1%, under federal tax treatment. Compared to the pretax net income these corporations showed in their annual reports the rate was 14%.

One prominent feature of the “Tax Cuts and Jobs Act,” which should be factored into the assessment of the overhaul of the corporate tax structure, is the change from a global to a territorial tax system. Instead of corporations paying the difference between the U.S. tax rate and taxes already paid to the country where income was earned, each subsidiary now pays only taxes to the country in which it earns the income. Under new tax code Section 965, U.S. multinationals are required to pay a one-time “transition tax” on income accumulated overseas since 1986. The law treats the income as repatriated and imposes a 15.5 percent tax on cash or cash equivalents, and an 8 percent tax on illiquid assets, such as factories and equipment.

The amount of offshore cash corporations are bringing back to the U.S. dropped sharply for a second straight quarter, falling short of the trillions of dollars President Donald Trump had promised would result from his tax overhaul.

Companies repatriated $92.7 billion in the July-September period, the lowest amount this year and down almost 50 percent from the previous quarter, according to data released Wednesday by the Commerce Department. U.S. corporations repatriated $294.9 billion in the first three months of 2018 and $183.7 billion in the second quarter.

This provision of the “Tax Act” may be the only tax reform that stimulated the economy.

Assessing benefits of the “Tax Cuts and Jobs Act” examines its effects on:

Corporate Profits

Observe corporation after tax profits (lower figure) during the last several years — companies had high profits, and sufficient funds for investment must have been available.

Compare after tax to before tax profits (upper figure with slightly different scale) and note the low tax rate on the profit. As examples,

Profits in 2014 reached $2320 billion and after tax profits were $1920 billion.

Tax Rate = $400b/$2320b = 17.2 percent.

Profits in 2015 were $2000 billion and after tax profits were $1640 billion.

Tax Rate = $360b/$2000b = 18.0 percent.

Profits at end of 2018 (after Tax Act) were $2220 billion and after tax profits were $1980 billion.

Tax Rate = $250b/$2230b = 10.8 percent.

Calculations verify that Tax Rates for most corporations were much below the previous 35% rate and, presently, are only about 6-7 percent below that of the previous average rate.

Another supposition is that, with increased after tax profits, corporations can improve competition from foreign sources by trading the profits for lower prices. How much can prices be lowered? Calculations, shown in the following table, demonstrate what products will cost for two different profit margins with reduction of the corporate tax from 35 percent to 20 percent, and if the corporation forfeited all of the profit increase by reducing its prices.

Price That Maintains After Tax Profit

Is the cutting of prices by 2.0% – 4.0% sufficient to make products more competitive? Unlikely! Advantage from the more realistic 6 percent tax cut makes it more unlikely.

How additional profits were used


Stock buybacks, increased dividends, and net domestic investment provide the answers.

Stock buybacks increased by $330 billion; dividends increased slightly.

Net Domestic Investment increased by $200 billion.

As shown before, the repatriated profits, less the 15.5% tax rate, amounted to about $424 billion in year 2108. The sum of additional usage of profits amounted to $530 billion in year 2018. Obviously, the repatriated profits played the major role in additional usage of profits, and tax cuts had little effect on profit usage.

Using repatriated profits to enrich stockholders might have merits – stockholders deserve benefits from their corporations and this benefit has an added significance. Unlike normal stock market trades, where money is exchanged and no new money enters the system, these stock buybacks took external funds and injected them into the domestic system, which increased the available money supply and purchasing power.

Trade Balance

It is difficult to assign a relation between tax cuts and Trade in Goods and Services. President Trump’s tariff policies add confusion to determining the causes for the trade deficit and how it was affected by tax cuts. Clearly, despite President Trump’s stress on improving it, the tax cuts did not reverse the trend, and the trade deficit increased by a large margin ($69b) in year 2018.

Foreign Competition

Exports, which had already been increasing, additionally increased, and imports, especially of goods, increased much more. Bottom line is that the corporate tax cuts cannot be shown to have improved competition with foreign sources.

Gross Domestic Product (GDP)

The GDP grew at a more rapid rate during year 2018, up about $1160b compared to growth of $852b in year 2017, or an additional $300b in the rate of growth. The kicker is that Federal Government Spending (shown above), which added $110B to the GDP, coupled with the $200b increase in net domestic investment (cited previously) accounted for that added growth. The additional trade deficit of $69b (cited previously) subtracted from the GDP growth, but can be accounted for by a partial spending stimulus from the $330b stock buybacks due to the profit repatriation (cited previously). Sufficient evidence exists that other mechanisms than the tax cuts were responsible for the added growth to the GDP.

Government Deficit

According to Department of the Treasury reports, corporate tax receipts fell by 28 percent – from $223 billion in 2017 to $162 billion during the first nine months of fiscal year 2018. For that reason, as the following chart shows, the Federal Government deficit, which has increased in all of years of Trump’s presidency, increased by $114 billion. If $75b taxes had not been collected on the $500b of repatriated profits, the deficit would have increased by $189b. Because the defict increased, it can be argued that the deficit increase, caused by the tax cuts, stimulated the economy.

Conclusions

Evidently, corporations flush with repatriated profits, used these retained earnings for about $330 billion in stock buybacks and about $200 billion for additional investment. The repatriated profits also increased the money supply and GDP.

This indicates the tax cut are responsible for (1) increased after tax profits for already highly profitable corporations, (2) increased trade deficit, (3) about $80 billion loss (annualized) in government revenue, and (4) increased federal deficit to $114b. One more result – lowering of competition — corporations with large profits can use the funds to buy out and provide stiffer competition to corporations that have miniscule profits or losses.

President Trump’s corporate and income tax cuts enriched corporations, satisfied those already employed and flush with money, and did little to stimulate the national economy.

Note: Deciphering a multitude of economic statistics and using them to evaluate the effectiveness of tax cuts is a complicated task. It is believed that the statistics have been correctly applied and the results are credible. If not, rebuttals to lapses in argument and incorrect formulations, as well as advice to obtaining more precise numbers, are welcome

NATO: No Need, NEXIT

“EXIT NATO!”  was the glaring title on a huge screen greeting the several hundred participants of the Anti-NATO Conference in Florence, Italy, on 7 April 2019. Officially it was called The International Conference on the 70th Anniversary of NATO, sponsored by Global Research of Canada and the International Coalition to Ban Uranium Weapons (ICBUW). I had the privilege to attend this important forum.

Following the EXIT NATO poster, was another huge slide decorating the conference wall proclaiming that NATO, as a reward for all their work for Peace, should be rewarded with the Peace Nobel Prize. No doubt, nuclear armament and eventually nuclear wars to be fought by NATO – by whom else – will make the world a safer place. Wars are actually good for Peace. They are also good for economics, but they are particularly good for Peace.

I’m not kidding you – these are declarations one can read – and has been able to read since practically 9/11, in such prominent “Truth News” papers like the Washington Post and the NYT.   So, why not the Peace Prize to NATO? It wouldn’t make much difference.  Considering the track record of the Nobel Prize Committee, it would fall right into place.

Other than that, the conference basically outlined the atrocities committed by NATO, its associate and crony terrorist armies, ISIS, Al Qada, Al Nusra and so on, changing names for revolving terrorists, recruited and trained by the CIA and funded by Saudi Arabia and other Gulf countries, and, of course the US directly or through her many State Department funded and subsidiary NGOs, like the National Endowment for Democracy (NED) and many others. And, of course, not to forget a prominent funder of terrorism, Turkey, who is now trying to make a smiling face to Russia and the east, even flirting with the idea of entering the club of the Shanghai Cooperation Organization (SCO); on the one hand purchasing Russian military defense systems – the S-400 – and at the same time US fighter planes F35, dancing on as many weddings simultaneously as they can. Who would trust Turkey under Erdogan? Turkey also still hosts one of the most strategic and most dangerous nuclear-equipped NATO bases literally between east and west.

The Conference recalled the Cold War. By now everybody knows – really? – well, for those who don’t – that the so-called Cold War was one of the best propagated and fakest news of the 20th Century. It’s a brilliant idea that sprung out of the McCarthy Nazi-era – like NATO itself – to arm the US to the teeth, maximizing profits of the military industrial complex, under the pretext of halting the advancement of the Soviet Union into just liberated western Europe, just liberated from Hitler’s Nazi-Germany. Never mind that western Europe has been saved by the Soviet Union who lost 25-30 million people and basically their transport and production infrastructure. Yes, it was not the so-called allies – US, UK and France – they came in last, when the bulk of the job was already done by what is today Russia. But, of course, no western history book would tell you the truth. In fact, it must be said here too that the US funded Hitler’s war against the Soviet Union with money channeled from the FED, through Wall Street banks, and eventually through the Rothschild dominated Bank for International Settlement (BIS), located in Basel, Switzerland, right at the border to Germany, from where it was easy to pass the money on to the Reichsbank – Hitler’s Central Bank. Yes- that’s how the US was already then dancing on various fiestas at the same time; on the one hand bombing Germany and, on the other, financing Germany’s war against what the US already then perceived as an archenemy – The Red Scare – the Soviet Union. Well, these acts of treason then were the precursors of NATO today.

Anything socialist is evil for the US, still today. Trump, himself, and his minion clowns — Pompeo, Bolton and Pence — are lambasting Venezuela and Cuba for being evil and destructive socialist countries and that socialism will not be tolerated anywhere by the falling empire – sorry, falling it is – of the United States of America.

The other purpose of the Cold War farce was to make the Europeans believe that they were under a constant threat of a Soviet invasion, that they had to arm themselves also to the teeth – imagine war-recovering Europe having to spend their money on arms for no use! – and, of course, most of these weapons had to be bought – yes, you guessed it – from the US military industrial complex meaning more profit for the war oligarchs. The Anglo-media giants even created a virtual barrier between western “free” Europe and the bad-bad Red Scare, the Soviet Union, the Iron Curtain. Yes, the Iron Curtain; children in school were indoctrinated to be aware that the enemy is hiding behind the Iron Curtain, and that the enemy always comes from the East. Hilarious, when you think back. At that time (almost) everybody believed it.

And the third, or perhaps first objective of the Cold War, was to block the Soviet Union from developing a viable and autonomous economy with which they could thrive, as most socialist countries do, until they are boycotted, punished and financially “sanctioned” into suffocation by the west. These illegal financial manipulations with and within sovereign countries’ economies, are, of course, illegal by any standards of international laws, laws that have become meaningless in the light of US / NATO power, scary nuclear power. These acts of financial and human rights high crimes are only possible because of the all dominating, fraudulent US-imposed – and NATO-protected – western monetary system.

The NATO-driven Cold War, a constant nuclear threat towards the Soviet Union, was intended to force Russia also to arm for their defense, instead of being able to use their economy’s added value to rebuild their devastated country. The USSR was never a threat to Europe. There was never an intention of the Soviet Union to invade western Europe. The same today, we are being made believe that Russia wants to invade Europe.  That’s why NATO needs to build all these military bases at the door step to Russia. Russia is by far the largest country, territory-wise, in the world, they don’t need to add more land. Historically, neither Russia or China have a record of expansionism.

In the end, the NATO-led Cold War managed to dismantle the Soviet Union by ‘buying’ some corrupt Soviet leaders, so that the new Russia, whose socialist system just was made to collapse, unprepared with legislation for what was to come – privatization by fire-sale of their entire economy. Like vultures, the financial institutions, IMF, World Bank, agents of the FED, descended on Moscow to literally steel by indebting whatever had any value. This misery still has not entirely abetted, as the Russian Central Bank was restructured, following the image of the FED – today, under President Putin, much has changed and was reformed; however, the financial sector is still heavily invaded by the Atlantists – or what you may also call the Fifth Columnists. And, of course, even those are protected by NATO as NATO issues threats, nobody knows from where they come, but you know who executes them, in case of…

The Florence Anti-NATO Conference also recalled some of the most abject killing sprees of NATO in its 70 years of existence, the wars in Afghanistan, Iraq, Libya, Syria, Sudan, Yemen, Ukraine – the Maidan massacre followed by the so-called Ukrainian civil war – and the crowning of sorts, the ten-year war on Yugoslavia, the total destruction of Yugoslavia, with the final blow 1999, the merciless bombing of Bosnia-Herzegovina and Kosovo. Why Yugoslavia? Let’s dwell just a moment on this war of cruel destruction and killing because it is so typical for Pentagon-driven wars of annihilation. Yugoslavia, a socialist country, in the 1970s and 80s under Maoist President Tito, had a prosperous economy, much more so than the rest of Europe. The US-dominated west cannot let a socialist economy flourish. Other countries, especially stagnating western Europe, could get ideas.

Remember, socialism is evil. So, with what is today called the “Balkanization” – cut into pieces – of Yugoslavia was the old-old tactic of divide to conquer, as well as by creating internal chaos, the western powers kept control of the people, and eventually NATO was able to advance closer and ever closer to the Russian border, by occupying former Yugoslav republics with NATO bases (Albania, Croatia, Montenegro, Slovakia, Slovenia and Kosovo is waiting in the wings), in addition to the further expansion east to Romania, Bulgaria, Czech Republic, Hungary, Poland, not to mention the former Soviet Republics of Estonia, Latvia, and Lithuania.

This expansion east, ever closer to Moscow, is a flagrant breach of a promise made by the allied forces. In 1991, then German Foreign Minister Genscher promised Russian President Gorbachev that NATO would not move one inch further east than Germany. In fact, he assured Gorbachev that NATO would not move into what before the German unification was Eastern Germany. This promise was unfortunately never recorded in writing, and Gorbachev was miserably betrayed. As we know by now, a betrayal by the west is very normal.In the meantime,12 more NATO bases east of Germany, including in former East-Germany, were built.

In their 70 years of existence, US-NATO, allied and proxy forces, as well as mercenaries, have killed between 20 and 25 million people around the globe, in wars and conflicts – in the eternal war against “terror” – that was “justified” by self-inflicted 9/11, the start to the final phase of the PNAC – Plan for a New American Century – to reach Full Spectrum Dominance.

Wars have a cost – a financial, economic and a social cost. The US official military budget for Fiscal Year (FY) 2018 is US$ 700 billion; for FY 2019 Trump proposes US$ 750. If approved it would be a 40% increase in the last 9 years. But that’s not all. This is just the officially published figure. The real cost for the war, defense and security apparatus to which also the opaque CIA and associated secret services count is well over a trillion dollars, perhaps as much as US$1.5 trillion per year.

The US has currently about one million military personnel stationed in 175 countries around the globe. The Pentagon maintains about a thousand military bases in more than 100 countries. The war cost, in currently seven war theatres, is prohibitive – medical costs for veterans, for social services to returning veterans – and we are not talking about the cost of off-battle ground lives; i.e., by ever-mounting suicide rates. The Veteran Administration released a study that covered suicides from 1999 to 2010, showing that roughly 22 veterans were dying by suicide per day, or one every 65 minutes.

The reality is most likely a much higher figure – and the despair and human depression from anxieties related to the never-ending wars has increased exponentially in the last 9 years – more suicides, more desperation, more broken families, entire generations of kids with fathers at war. This cost cannot be put in figures of dollars and cents.  It’s a social cost that bears its toll in years, perhaps generations from now.

The US spends per capita ten times more than the rest of the world together on military / war expenses. President Trump requests European NATO countries to increase their military budget by contributing more to NATO, first up to 2% of GDP, threatening he may decide to withdraw NATO from Europe, if Europe does not comply with his request, still making believe that NATO is a defensive force  protecting Europe — from what and from whom?  Good-bye NATO. This is the moment to call Trump’s bluff.

But NATO – the Trans-Atlantic Treaty Organization – has also gone overseas to Latin America. NATO has since 2013 a Cooperation Agreement with Colombia, where the US has 5 military bases which will automatically convert into NATO bases. NATO is also negotiating with Brazil’s new Nazi-leader, Bolsonaro, to enter Brazil, and, as such being a threat and a potential attack force to topple the Venezuelan democratically elected socialist government. Washington makes no secret – they want Venezuela’s hydrocarbon resources, the world’s largest reserves, gold and other minerals of which Venezuela is rich. NATO is perfect to do the dirty job.

But it gets worse, this Trump clown or the masters behind him, had recently the audacity to ask for a European military budget increase to 4% of GDP – or else…. Yes. Let’s decide for else. Good riddens, NATO.

The overall NATO budget is well over a trillion dollars per year – yes, per year. And that is – people of Europe, people of the world! – that is to finance a killing machine that bulldozes countries into the ground with bombs and tanks, that kill indiscriminately civilians and other countries’ defensive military, countries that have never done any harm to the United States, nor to Europe which follows the Washington mandate like a bunch of vassals, what Europe has become.

Imagine what could be done with more than a trillion dollars or euros per year in terms of building up education, health services, public infrastructure, and other social services and expand these services to developing countries, to those very countries that are now bombarded mercilessly by NATO! This, dear People of Europe, is your tax money. Do you want it to be spent killing people around the world for Washington’s world hegemony?  NATO does not protect you. NATO has been designed as an aggressive force. You were just never told. But look out of the window, the window of your ‘safe space’, and you will see the squandering of your tax money.

NATO is invading the space of Russia and China, countries that are seeking friendly relations with the rest of the world, they are seeking a multi-polar world, but encounter instead a response of aggression. NATO is preventing the natural, namely friendly relations and trading as equals within the huge Continent Eurasia, of which Europe has been artificially separated as a continent. This tremendous landmass Eurasia, includes also the entire Middle East and connects to Africa. This enormous mass of land and people and resources does not need the west, the west called America.

Wouldn’t it be wise for countries and people of Eurasia to just live sovereign lives, with friendly interactions, trading as equals not with a one-upmanship as is currently the norm for trading between the rich OECD nations dominating the World Trade Organization (WTO), with the rest of the world- which depends on trade but is always on the losing end?

One more point that needs to be understood. Europe, the European Union as it was conceived and is limping along today, has never been the idea of Europeans, but was born during WWII in the heads of the CIA, then transplanted into some “willing” European heads and then ‘defended’ by NATO – the “unifying force”. Europe has no Constitution, only a number of non-binding accords, like Maastricht and Lisbon – but no Constitution that holds it together, that outlines a common vision in defense, in economic development, in monetary policy. The European Union results in a bunch of countries, some even hostile to each other. They have a common currency, the Euro, without even having a common economic base and development objective. This currency, forged as the little brother of the US-dollar, equally is nothing but fiat money, no backing whatsoever; this currency is not sustainable. So, the currency barely 20 years old, will eventually collapse or fade, and so will the European Union. It hasn’t happened yet, because NATO is holding it together, because Brussels is nothing but a puppet of the Pentagon. It is Washington through the Pentagon, and through NATO that is running Europe.

People of Europe, is it that what you want? Your tax money spent killing people and destroying countries around the globe, and having lost all independence, autonomy as a country, as well as monetary sovereignty – by being run by a military killing machine, called NATO?

It’s time to kill NATO, rather than being killed by NATO. Exit NATO now. It’s time for NEXIT.

Rising Politics of Intolerance and the Need for Unity

Over the last 20 years extreme right-wing groups have been on the rise throughout the world. They share a belief in white supremacism and conspiracy theories that allege there is a global plot to replace white Christian populations with Muslims and people of color.

As socio-economic inequality has grown and immigration increased the reactionary ideology of tribal nationalism has become more popular and bled into mainstream politics. Far right groups have garnered support and won political power in a number of countries, including Austria, Poland, Hungary, Italy, the US and India.

Rising far-right terror

Within the spectrum of the far right there are varying degrees of bigotry and Neo-Fascist ideals; at the darkest extreme there are the Neo-Nazi’s, a small percentage that holds the most violent views; next are the pro-white, anti-Semitic social conservatives, they form the majority and want a separation of the races; then there is the more moderate wing or Alt Lite, staunchly anti-feminist, anti-political correctness, pro-western chauvinism. All are abhorrent, all are dangerous; a hint of prejudice no matter where it comes from adds to the collective atmosphere of intolerance, fans the flames of division and can incite violence.

While overall terrorism throughout the world is declining, The Global Terrorism Index (GTI) states that, “there has been a real and significant increase in far-right terrorist activity.”

Since 2014, the number of attacks from right-wing extremists has been greater than attacks from Jihadists, and, the Anti-Defamation League reports that during 2018 “right-wing extremists were linked to at least 50 murders in the United States [up 35% on 2017].” Globally, between 2013 and 2017 there were 113 attacks “by far-right groups and individuals…. of those 47 attacks took place in 2017.

On 15th March, 50 Muslims were murdered in Christchurch, New Zealand: the indiscriminate attack on two mosques during Friday prayers was carried out by Brenton Tarrent, a 28-year-old Australian white supremacist. Prior to the attack Tarrent published a 78-page document entailed The Great Replacement, online. In it he states that the aim of the Christchurch murders was “to take revenge on the [Muslim] invaders for the hundreds of thousands of deaths caused by foreign invaders in European lands throughout history…and the thousands of European lives lost to terror attacks throughout European lands.” The manifesto title and many of the ideas promoted in it come from Le Grand Remplacement by 71-year-old Jean Camus and published in 2012.

Camus claims that the white Christian European population is being ousted by immigrants from the Middle East, North Africa and Sub-Saharan Africa. His views have become highly influential on right-wing groups, nationalist and identitarian movements across Europe, the US and elsewhere. Although Camus is particularly concerned with France and preserving French culture, he believes that all Western countries are faced with what he calls, “ethnic and civilizational substitution”, in which over the course of a single generation a civilization is transformed by immigration.

As a result of wars in the Middle East and economic insecurity in Sub-Saharan Africa large numbers of migrants have indeed fled to Europe and elsewhere seeking safety and a new life. The influx of migrants/refugees into western countries presents societal challenges and change, but is not a threat or an act of ‘replacement’. The vast majority of migrants do not want to leave their homeland and travel to a country they do not know; people migrate to escape conflict, persecution and economic hardship, much of it caused by the foreign policies of western powers over decades, the exploitation of poor countries over centuries and the concentration of global economic wealth.

Cries of hate; modes of tolerance

Far-right terrorism is a transnational issue; extremists from different countries are more connected than ever and work together. The Centre for Strategic and International Studies relates the example of how in early 2018 members of the Rise Above Movement  (RAM, a white supremacist group based in California) “traveled to Germany, Ukraine, and Italy to celebrate Adolf Hitler’s birthday and to meet with members of European white supremacist groups.” They posted photographs on Instagram with the RAM logo and words like “RAPEFUGEES ARE NOT WELCOME HERE”.

In Ukraine RAM members are reported to have met with Azov Battalion, a paramilitary unit of the Ukrainian National Guard believed to be training and radicalizing white supremacist organizations based in the United States.

The internet plays a crucial role in the work of such groups: social media platforms are employed by both Islamist and right-wing extremists to spread propaganda, organize training, make travel arrangements for events/protests, raise funds and recruit members. Extreme right-wing Internet channels spread lies, exaggerate and mislead; when challenged the sacred cow of freedom of speech is invoked to justify the use of inflammatory language. Freedom of speech is a fundamental human right, but when it leads to murderous violence it violates the most basic human right, the right to life; freedom of speech needs to be conditioned by a sense of social responsibility, respect and understanding of others.

Acts of hate and intolerance of all kinds have been increasing exponentially across the western world in recent years. The 2016 election of Donald Trump in the US, the highly divisive EU referendum in Britain the same year and the influx of refugees fleeing wars and economic hardship triggered a wave of crimes against immigrants, particularly Muslims, as well as other minority groups. Liberal politicians, especially women, have also been targeted, many receiving hate mail and violent threats from right-wing extremists.

The current hatred of Muslims was aroused by the 9/11 attacks and inflamed by the ‘War on Terror’ announced by President George W. Bush in 2007; prejudice normalized, the far right flourished. A 2010 poll conducted by Gallup found that almost half of Muslim Americans experienced racial or religious discrimination, which is on par with “Hispanic Americans (48%) and African Americans (45%),” and, according to research by the EU Fundamental Rights Agency a third of Muslims in Europe say they face discrimination effecting employment, access to public services and housing.

Mainstream politicians stir up discrimination and incite hate; President Trump openly expresses hostility to foreign nationals and consistently makes and retweets Islamophobic comments, he has banned people from several Muslim-majority countries from entering the US, talks of the US being invaded and is building a ‘wall’ on the Mexican/US border. He is not alone in pandering to prejudice, many right and far right leaning politicians in western democracies have been guilty of fanning the fires. A striking example was the recent action by UK Home Secretary, Sajid David when he stripped Shamima Begum of her British citizenship. The 19 year old, who was in the final days of pregnancy when the announcement was made, had made the mistake of going to Syria in 2016 to support ISIS and marry an ISIS fighter. Her baby was born inside a refugee camp in Syria and, due to lack of proper medical care, died three weeks later.

Not only is the action to make her stateless illegal, it panders to the rhetoric of right wing populism and, instead of fostering forgiveness and compassion, adds to the creation of an environment in which judgment, intolerance and retribution flourish.

Unity not division

Protectionist ideals flourish in an atmosphere of fear, of economic instability and an unstable political environment; such insecure conditions strengthen inward-looking insular attitudes allowing the divisive ‘us versus them’ ideology to become the norm. Divisions of all kinds feed the idea of separation, create distrust, suspicion and fear; and fear leads to conflict and hate.

A cornerstone of the economic system and many aspects of contemporary life is competition; competition encourages division. Competition and aggression go together: the sense that we must compete or fight to survive, that others – especially others that are dissimilar – are regarded as opponents, rivals, competitors wanting what we have, which we must defend at all costs. Trust is nowhere in such an unjust world, society fractures along flag waving lines, violence erupts.

One of the consequences of this combative socio-economic system is inequality – of wealth, income, opportunity, influence, access to culture etc., etc. This social poison fuels a range of ills including mistrust, particularly of ‘the other’, someone who looks, talks and prays differently. Societies with the highest levels of inequality have the lowest levels of trust.

Competition, socio-economic inequality and poverty are not the cause of right-wing extremism, neither is the spread of misinformation or the use of inflammatory language, but collectively they form a powerful force in the creation of circumstances in which negative human tendencies like fear and aggression, are inflamed.

Division in any form, including nationalism, and competition go against human nature; if we are to free the world of all forms of extremism and hate they need to be driven out of society and from the systems under which we live. Unity is the keynote of the times, unity with the greatest level of diversity; modes of living that encourage tolerance and unite people must be actively inculcated. This means rejecting competition and embracing cooperation; it means sharing resources, information and wealth equitably; it means building trust and right relationships. Only then will there be peace within our communities and the wider world.

US Negotiations: Masters of Defeats

The US is currently engaged in negotiations with at least a dozen countries — which involve fundamental political, military and economic issues.

The US has adopted diplomatic strategies in the face of its ‘inability’ to secure military victories. The purpose of adopting a diplomatic approach is to secure through negotiations, in part or fully, goals and advantages unattainable through military means.

While diplomacy is less subject to military and economic losses it does require making concessions. Negotiations are only successful if there are reciprocal benefits to both parties.

Those regimes which demand maximum advantages and minimum concessions, usually fail or succeed because they are based on very unequal power relations.

We will proceed to evaluate Washington’s success or failure in recent negotiations and analyze the reasons and consequences for the outcome.

US-North Korea Negotiations

President Trump and North Korean leader Kim Jong-Un have been engaged in negotiations, for nearly a year. The White House has prioritized the ‘de-nuclearization’ of the peninsula which includes dismantling nuclear weapons, missiles, test sites and other strategic military objectives.

North Korea seeks the end of economic sanctions, the signing of a US-Korean peace treaty and diplomatic recognition. A decisive meeting between the two took place Feb. 26-27, 2019 in Hanoi.

The negotiations were a total failure. Washington failed to secure any gains, nor did they advance the peace process; and there are no future prospects.

North Korea offered three significant concessions which were not reciprocated. President Kim Jong-Un proposed to (1) dismantle nuclear testing sites, (2) announced a moratorium on nuclear tests and inter-continental range ballistic missiles tests, and (3) agreed to partially dismantle missile engine test sites.

Washington offered nothing in return. Instead it demanded total disarmament, no lifting of sanctions, no signing of the end of the US-Korea war.

Washington’s asymmetrical ‘negotiations’ were pre-determined to fail. The US underestimated the capacity of the North Koreans to insist on reciprocity; they believed that future verbal promises would entice the North Koreans to disarm. The Koreans were fully aware of the recent US record of reneging on signed agreements with Iran, China and its partners in the Belt and Road agreement.

Moreover, North Korea has powerful allies in China and Russia and nuclear weapons to resist added US pressure.

US-Iran Negotiations

US and Iran negotiated an agreement to terminate economic sanctions in exchange for ending nuclear weapons development. It temporarily succeeded but was quickly reversed by the Trump regime. The White House demanded Iran dismantle its missile defense program and threatened a military attack. Washington did not bargain, it sought to impose a one-sided ‘solution’. The UK, France, Germany, Russia and China, co-signers of the agreement, rejected the Trump dictate, but a number of major EU multi-national corporations capitulated to the White House demand to tighten sanctions.

As a consequence, the US deliberate sabotage of negotiations pushed Iran closer to Russia, China and alternative markets while the US remained wedded to Saudi Arabia and Israel. The former is engaged in a losing war with Yemen, the latter has remained an international pariah receiving billions of US dollars in handouts.

US-China Negotiations

The US has engaged in negotiations with China to downgrade its economy and retain US global supremacy. Beijing has agreed to increase its imports from Washington and tighten controls over Chinese use of US technology, but the US has not offered any concessions. Instead, Washington has demanded that China end the state’s role in financing its cutting-edge technology, artificial intelligence, and communication innovations.

In other words, China is expected to surrender its structural advantages in order to avoid harsh White House tariffs which would reduce Chinese exports.

There is no reciprocity. The Trump regime operates by threats to China which will have negative effects: on US farmers dependent on Chinese markets; on US importers, especially the retail sector which imports Chinese products; consumers who will suffer higher prices for goods purchased from China.

In addition, China will deepen its links with alternative markets in Asia, Africa, Russia, Latin America and elsewhere.

As of the most recent year (2018) China’s positive trade balance with the US rose to $419 billion dollars while the US was forced to increase its subsidies to US agro-exporters to compensate for loss of sales to China.

After several months of negotiations US representatives have secured trade concessions but failed to impose a breakdown of China’s economic model.

By the middle of 2019, while negotiations continue, the likelihood of a ‘grand bargain’ is dismal. In large part this is because Washington fails to recognize that its weakened global position requires that the US engage in ‘structural changes’, which means that the Treasury invests in technology; labor upgrades and education. The US should practice reciprocal relations with dynamic trading partners; to do so, Washington needs to invest billions to upgrade its domestic infrastructure; and reallocate federal spending from military spending and wars to domestic priorities and productive overseas agreements. US diplomatic relations with China based on threats and tariffs are failing and economic negotiations are deteriorating.

US-Venezuela: Non-Negotiations a Formula for Defeat

Over the past half-decade (2015-2019) Washington has succeeded in restoring client regimes in Latin America, by military coups, political intervention and economic pressure. As a consequence, the White House has successfully ‘negotiated’ one-sided political, economic, social and diplomatic outcomes in the region … with the exception of Cuba and Venezuela.

President Trump has broken negotiated agreements with Cuba to no advantage; US threats have led to Cuba securing greater ties with Europe, China, Russia and elsewhere without affecting Cuba’s tourism business.

The Trump regime has escalated its political and economic propaganda and social war against Venezuela. Multiple overt coup efforts have backfired beginning in April 2002 and continuing to February 2019.

While the US succeeded in the rest of Latin America in consolidating hemispheric hegemony, in the case of Venezuela, Washington has suffered diplomatic defeats and the growth of greater popular resistance.

US interventionist and sanctions policies have sharply reduced the presence of its middle- and lower-middle-class supporters who have fled abroad. US propaganda has failed to secure the support of the Venezuelan military which has become more ‘nationalist’ with very few desertions.

The White House appointment of the convicted felon Elliott Abrams, known as the ‘butcher of Central America’, has certainly undermined any prospect of a favorable diplomatic settlement.

US sanction of political and military leaders precludes efforts to co-opt and recruit leaders. The US appointed as its ‘interim ruler’ one Juan Guaidó who has little domestic support – widely seen domestically as an imperial stooge.

The US non-negotiated successes in Latin America have blinded Washington to the different conditions in Venezuela; where structural socio-economic reforms and nationalist military training consolidated political support.

In the case of Venezuela, the US refusal to enter into negotiations has led to greater polarization and multiple defeats, including the failed coup of February 23/24 2019.

US-Russia: Colluding with Failed Diplomacy

Washington successfully ‘negotiated’ the surrender and break-up of the Soviet Union and the subsequent pillage of Russia. It was the US’ most successful ‘negotiations’ of the century. The US ‘negotiations’ allowed it to expand NATO to the Russian frontier, incorporated most of East Europeans into the EU and NATO and led the US to boast of creating a ‘unipolar world’.

Excess hubris led the US to launch prolonged (and losing) wars in Afghanistan, Libya, Iraq, Somalia, Syria and elsewhere.

With the election of President Putin, Russia made a comeback, which led to the Kremlin reconstituting its military, economic and geopolitical power.

The White House reacted by attempting to ‘negotiate’ Russia’s military encirclement and to undermine Moscow’s economic growth.

When Russia refused to submit to US dictates, Washington resorted to economic sanctions and power grabs in the Ukraine, Central Asia and the Middle East (Iraq and Syria).

Washington rejected a diplomatic approach in favor of economic intimidation — especially as some US-backed oligarchs were arrested or fled with their wealth to the UK and Israel.

The US refused to recognize the opportunities which still existed in Russia – a neo-liberal economic elite, a mainly mineral export economy, and Moscow’s conciliatory approach toward US military engagement in Libya, Somalia, Yemen and Iran.

US ‘negotiations’ were non-starters. The White House defined Russia as an enemy to be undermined. Sanctions became the weapon to deal with Russia’s attempt to regain its world standing. Washington’s aggressive posture included its refusal to recognize that the world had become multi-polar; that Russia had allies in China, partners in Germany, military bases in Syria, and has loyal and advanced scientific elite.

The US, operating from a past image of Russia from the Yeltsin era, failed to adapt to the new realities – a resurgent Russia willing to bargain and secure reciprocal advantages.

The US failed to recognize potential allies and economic advantages in open negotiations with Russia. Many Russian economists close to the Kremlin were neo-liberals, ready and willing to open the economy to US penetration. Russia was willing to concede the US a major role in the Middle East and offered to negotiate their oil export policies.

Instead the US refused to negotiate power sharing .US sanctions forced Russia to embrace China; Washington’s drive for global dominance encouraged Russia to build ties with Venezuela, Cuba, Iran, Syria and other independent nations.

Washington’s unipolar policies turned a potentially lucrative and long-term strategic relation into costly confrontations and failed diplomacy.

US and the European Union: Dead End Deals

Bullying Europe has been a successful endeavor, which the US has put on display on innumerable occasions in recent times. Washington negotiates agreements with the French, English and German to end economic sanction on Iran and then reneges and turns around to apply sanctions on European firms which comply with the US and disobey their own government.

The US negotiates with Europe on trade policies and then abruptly threatens to impose sanctions on its crucial auto exports.

Europe negotiates with Washington on NATO security issues and then the White House threatens them in order to raise their military spending.

The US claims that the EU is a strategic ally but treats it as a junior partner.

Negotiations between the two have been a one-sided partnership: the US sells arms and names adversaries, while Europe argues and dissents, eventually submitting and sending troops to fight US wars in Syria, Afghanistan, Iraq, Libya and elsewhere.

The US dictates sanctions against Russia, increasing the price of EU imports of gas and oil. Germany debates, discusses, hems and haws while avoiding an outright rejection.

The US has steadily encroached on EU prerogatives to the point where it claims if the EU fails to comply with the White House’s “America First” agenda, it would cause the US to withdraw from NATO.

Despite a longstanding alliance, the White House no longer negotiates policies – it threatens and expects compliance. Despite a history of EU submission and pro forma debates, as Washington has hardened its opposition to Russia, China and Iran it no longer considers EU trade relations a point of negotiations. While Europe might consider the US as an ally, it will not be allowed to be treated as such, because it is viewed as a trade adversary.

Conclusion

Washington has succeeded in securing non-reciprocal agreements with weak countries. This was the case in post-war Europe, post-Gorbachev Russia and among Latin America’s current colonized regimes.

In contrast, Washington’s rejection of reciprocal agreements with Russia, China, Iran, Cuba and Venezuela has been a failure. US trade wars with China have led to the loss of markets and allowed China to pursue global agreements through its massive billion-dollar ‘Belt and Road’ infrastructure projects.

US one-sided hostile policies toward Russia have increased ties between the Kremlin and Beijing.

Washington has lost opportunities to work with neo-liberal oligarchs in Russia in order to undermine President Putin. Washington has failed to negotiate reciprocal ties with North Korea which would ‘de-nuclearize’ the peninsula in exchange for lifting economic sanctions and opening the door for a capitalist restoration.

Demanding unilateral concession and submission has led to uniform failures; whereas negotiated compromises could have led to greater market opportunities and long-term political advances.

President Trump and his top policy makers and negotiators have failed to secure any agreements.

The Democratic Congress has been as ineffective and even more bellicose – demanding greater military pressures on Russia, expanded trade wars with China and fewer negotiations with North Korea, Iran and Venezuela.

In a word, failed negotiations and non-reciprocal diplomacy has become the hallmark of US foreign policy.

Can Maduro Emulate Castro and Assad to Keep NATO’s Imperialist Hands Off Venezuela?

(Photo by U.S. Army Spc. Luther L. Boothe Jr., Task Force Currahee Public Affairs Office)

Imperial logic I: External crises distract from internal ones

Empires with internal problems tend to create external crises to distract the public opinion and unite their political and economical ruling class in a fictitious nationalistic fervor. The current United States policy of overt regime change in Venezuela, backed entirely by its NATO vassals, follows an evergreen imperial playbook of creating new crises to obscure failures and divisions.

In addition to the administration’s overall incompetence, the legal investigations through the Mueller inquiry, and the failure to deliver to its MAGA sycophants their big wall, it has passed unnoticed, and it will never be admitted by US officials or media that the US imperial wars in Afghanistan and Syria are, in fact, lost. Assad will remain in power, and the US administration has publicly admitted that it was negotiating with the Taliban. The temptation for the empire’s ideologues is too strong not to follow the precept: when you have lost a war, you declare victory and you leave. And next time around, you try to pick a weaker target.

Archive of Jakob Reimann

Imperial logic II: A state of war must be permanent

A prime example of this in recent history was the way the events of September 11, 2001 were used internally to justify the emergence of a police state, using far-reaching legislation like the Patriot Act and the creation of the Department of Homeland Security.

Externally, 911 was successfully used by the US to trigger, almost immediately, an invasion of Afghanistan with the entire NATO membership under the hospice of the military alliance’s Article 5, which stipulates that an attack on one member is an attack on all. This was the very first time, since the creation of NATO in 1949, that Article 5 was put into force.

With the US public opinion still largely revengeful, misinformed by media manipulations, and eager to wage war, two years later, in 2003, it was fairly simple for the Bush administration and its neocons to sell the invasion of Iraq as a war of necessity, and not for what it truly was: a war of choice, for oil and greater control of the Middle East. Cynically, the aftermath of 9/11/2001 gave the empire and its powerful military-industrial complex two wars for the price of one.

Archive of Dawei Ding

Imperial logic III: People are collateral damage of realpolitiks

Great moral principles of altruistic universal humanitarian concerns are almost never at stake in these instances. They are mainly smoke screens to hide the board of a cold, Machiavellian, and complex chess game where innocent bystanders often perish by the millions. They are the acceptable collateral damage of realpolitik’s grand strategists. Until the collapse of the Soviet Union, the true guiding principle of US imperial realpolitik, and all US foreign policy decisions that derived from it, was to stop the so-called communist domino effect.

Communist domino effect: three simple words for a game that killed millions of innocent people worldwide, first in Korea in the early 1950s, then in Vietnam in the 60s and 70s, and later, under the tutelage of some of the very same criminal architects, in Central and South American countries like Chile. Now in their golden years, most of these murderous policymakers, like Henry Kissinger, enjoy an active retirement with honors, respect and, unlike their colleague Robert McNamara, not a hint of remorse.

One of these policymakers, a veteran of US imperialism in Central America and also one of the staunchest advocates of Iraq’s invasion in 2003, has made a come back. He is neocon extraordinaire Elliot Abrams. Abrams has been rewarded for his actions in the Iran-Contra affair, El Salvador, and Nicaragua with a nomination as Special Envoy of the Trump administration for Venezuela. In other words, Abrams is in charge of the US-sponsored coup task force against Venezuela’s legitimately elected President Nicolas Maduro.

Archive of Lezumbalaberenjena

Defeating imperial logic: The Cuban and Syrian lessons

There are many others examples in history where in a David versus Goliath fight, the little guy who, on paper, did not stand a chance eventually through sheer determination, organization and vast popular support, won on the battlefield. Vietnam is obviously a special case in this regard, as the Vietcong of Ho Chi Minh managed to defeat, almost back to back, the old colonial masters of the French empire in the 1950s, and, of course. soon thereafter, the US empire.

In the early 1960s, during the Cuban missile crisis, Castro’s days seemed to be numbered. More recently, in Syria, all the lips of the NATO coalition, Israel and Gulf State allies were chanting in unison that as a precondition for resolving the Syrian crisis, “Assad must go!” By 2017, however, some coalition members such as Qatar, France and Germany were not so adamant about the “Assad must go” mantra. Not only did Bashar al-Assad not go, but also, as matter of fact, he is regaining control of his entire country, on his own terms.

AFP PHOTO/www.cubadebate.cu/

Castro outsmarted the empire’s CIA hitmen 600 times

Nicolas Maduro’s predecessor and mentor, Hugo Chavez, had in Fidel Castro a source of inspiration and the guidance of a father figure. Chavez, like other neo-Marxists, looked up to Fidel for leading a successful revolution, through military action, which had toppled the corrupt regime of Fulgencio Batista. This regime was not only a docile servant of the US government but was also directly associated with the Mafia’s criminal activities in Cuba in the era of Lucky Luciano and Meyer Lansky. With Batista’s complicity, American gangsters had turned Cuba into a gambling and prostitution paradise where the US’ unscrupulous rich went to play. Castro shut down the bordello that had become Cuba and proudly rebuilt his island, and he consciously set out to transform Cuba slowly and steadily into a socialist country.

Needless to say, the shutdown of their depraved and lucrative tropical paradise was unacceptable for the US empire’s ruling elites. Against all odds, the Cuban communist leader managed to defy one US administration after another, and without compromise remained at the helm of the Cuban revolution. It was not for a lack of trying either to invade Cuba, as in the Bay of Pigs botched invasion episode, or to cook up countless assassination attempts on Castro’s person. Starting almost immediately after he took power in 1959, Castro was the target of CIA assassination attempts. From the Kennedy era all the way to the Clinton administrations, Fidel Castro survived more than 600 plots to kill him. Some of the attempts involved collaborations of the Mafia with the CIA. Castro once said, “if surviving assassination attempts were an Olympic event, I would win the gold medal!” It has to be added that, at least so far, Fidel Castro has also won a posthumous gold medal for ensuring the legacy of the Cuban revolution.

Damascus, Syria. 15th March 2012 — Loyalties to President Bashar al-Assad attend the rally at the Umayyad Square and hold the Syrian flag and a picture of Bashar al-Assad.

Assad: military might and striking the right alliances

Almost eight years ago, some people in quiet mansions, regal palaces or discrete offices in Washington, Riyadh, Doha, London, Paris, and Tel Aviv or undisclosed locations came up with what appeared to be an excellent plan. They would hijack some of the genuine energy of the Arab Spring then quickly sponsor it with a huge arsenal, while hiring some supposed good Djihadists soldiers-of-fortune as the main muscle to get rid of the uncooperative Bashar al-Assad. In what I called in May 2013, an “unholy alliance to wreck and exploit,” the Western and Gulf States coalition to topple Assad was born. In the US, the late Senator John McCain was one of the cheerleaders of the so-called Free Syrian Army.

Eight years later, with Syria in ruins, 350,000 people dead, around 4.5 million refugees still scattered principally in Jordan, Turkey and Lebanon, Assad has prevailed in a bittersweet victory, considering that his country has been wrecked as a battleground for proxy wars. Bashar al-Assad did not win on his own. He managed to retain complete loyalty from the Syrian army during the past eight gruesome years. Assad also could count on the military involvement of dependable allies Hezbollah in Lebanon and Iran and, of course, a critical impact of Russia once Putin’s administration decided to commit military assets and troops.

Maduro can keep Uncle Sam’s hands off Venezuela

One can only hope that Venezuela’s US-sponsored coup attempt using the subterfuge of a phony revolution does not follow the track of Syria in terms of the mayhem. However, the analogies are numerous between Maduro’s situation today and that of Assad in 2011. First, Maduro has at his disposal a reasonably well-equipped military as well as the Chavista militia. To defeat the unfolding coup attempt, the loyalty of the armed forces has to be ironclad. Second, just as Assad has done, Maduro must work to cultivate, in pragmatic ways, both regional and worldwide alliances.

Cuba will do a lot to help and might turn out to be Maduro’s Hezbollah. But will Mexico, Bolivia, and Uruguay go beyond diplomatic posturing in their solidarity with Maduro against NATO’s imperialism? How involved and how far, either economically or, in a worse-case scenario, militarily are Russia, China, Turkey, and Iran willing to go? In geopolitics, unlike diplomacy, only actions talk. Venezuela has a massive bargaining chip in the form of the mostly untapped biggest oil reserve in the world. This is Maduro’s ultimate ace in this game, and it should be used shrewdly. In realpolitiks, friends might be temporary, and they always want something. This is not an altruistic environment.

Charter Schools: Competition Makes All Schools Losers

For most individuals, life without competition is inconceivable. Competition seems to be part of  everything we know and do. It saturates everything. Nothing seems to escape its grip. It directs and conditions people at the conscious and subconscious levels. Competition appears natural, inevitable, and normal, as if it has always existed and can never go away.

Generations of conditioning tells us that competition is what motivates us, drives us, and makes us want to improve, excel, and achieve. Competition is supposedly intrinsic to us and makes us break through barriers and reach new heights every day.

Nothing would ever supposedly get done without competition. Everyone would just be lazy and mope around at home all day eating Doritos and playing video games in their pajamas. People would allegedly aspire to nothing without the fear of winning and losing, without a protocol of rewards and punishments to “motivate” them to be productive. Competition is therefore the only way to overcome laziness and lack of productivity so as to get what one earns and deserves. In the final analysis, winning and losing supposedly brings out the best in everyone and everything and is the main way to ensure quality, excellence, and progress.

The Oxford English Dictionary defines competition as: “The action of endeavouring to gain what another endeavours to gain at the same time’; the striving of two or more for the same object; rivalry.”

Synonyms for competition include: “contention, conflict, feuding, battling, fighting, struggling, strife, war.”

Competition, the close cousin of individualism, consumerism, selfishness, greed, and anxiety is based on many long-standing myths. A main one is the myth of scarcity. According to this myth, things acquire their value from being scarce, and when there is not enough to go around, people will necessarily feud, compete, and fight with each other to obtain scarce things.

But there is no reason to compete for something, especially if it is abundant, as are so many things in the United States, an advanced capitalist economy. Why struggle, fight, battle, and feud for something if there is enough to go around? Why engage in stressful rivalry? For every homeless person in the U.S., for example, there are six vacant homes, proving that what is produced under capitalism is not for social needs, but for narrow private profit. Homelessness is not the product of a scarcity of houses but the direct result of a society based on an outdated economic and political system that embraces competition and does not recognize the rights of humans. No one should have to be homeless in a society overflowing with houses.

But there is also no automatic reason to compete for something even when it is scarce. There is nothing inherent to the scarcity of something that magically and instantly produces the drive to compete. The drive to compete is specific to the type of social order that prevails, specifically the capitalist social order.

Competition assumes, accepts, and perpetuates hierarchies, inequalities, privilege distribution systems, winners and losers. And it often brings out the worst, not the best, in everyone and everything. It rejects the idea that all humans have rights that government is duty-bound to guarantee in practice. Rights belong to people by virtue of their very being and cannot be given or taken away. They are not based on competition or merit. One’s rights, including the right to education, cannot be based on the anarchy, chaos, and violence of the “free market,” competition, individualism, and consumerism. Such a way of living is outdated, inefficient, and barbaric.

Charter school promoters and supporters never tire of reminding everyone that the ideologies of competition and the “free market” are the apex of human achievement and form the bedrock of the charter school movement. Charter schools are “market-driven” schools, they endlessly assert with a straight face. Competition is what schools need according to education privatizers who see everything as a commodity and as a matter of consumerism and individual choices. From the narrow perspective of “free market” fundamentalists, winning and losing, and punishments and rewards, are natural, healthy, normal, and eternal. It is the way things should be done. It is how you get the best. When schools compete, the “bad” ones disappear and the “good” ones prevail, and this way everyone gets to attend the “good” ones. Why, according to charter school supporters, should schools be viewed as being any different from any other commodity like beef jerky and chewing tobacco? The best way to get “good” schools, according to corporate school reformers and neoliberals, is by ruthlessly subjecting them to the same chaos, anarchy, and violence of the “free market.”

In reality, however, both public schools and charter schools, not to mention society and the economy as a whole, suffer when the ideology and practice of competition frame and drive thinking, ideas, arrangements, relations, institutions, activities, and behaviors in society.

Public schools, already chronically underfunded, over-tested, and constantly demonized by the rich and their political and media flunkies, lose billions of public dollars each year to privately operated charter schools rife with fraud, an unimpressive academic record, high teacher and student turnover rates, discriminatory student enrollment patterns, little transparency, no regulations, no publicly elected school boards, and no unions. The “free market,” competition, and privatization have successfully increased chaos, anarchy, and violence in the sphere of education and in the lives of many families, especially those families left uprooted, angry, dislocated, and stressed when a charter school closes, often without warning. Families have no recourse when this happens 200-250 times a year. They are left to fend for themselves like animals, just another casualty of the charter school sector organized and promoted by the rich.

A handful of major owners of capital have gotten vastly richer by creating pay-the-rich schemes like charter schools to expand their private empires, while also working overtime to promote the illusion that charter schools are wonderful, harmless, reasonable, successful, alternative education arrangements for “the kids.” The rich are the only winners when it comes to charter schools and other forms of education commodification and financial parasitism. Charter schools have nothing to do with “empowering parents.”

Another way charter schools, public schools, students, teachers, parents, and society as a whole lose when competition is imposed on education is through the animosity, anger, resentment, stress, and protests that are generated when schools compete for students and funds. Competing for depleted funds makes both types of schools worse off, especially when economies of scale matter. Charter school supporters’ much-vaunted competition has not generated widespread mutually beneficial cooperation and growth in the sphere of education. Instead, a mean ugly spirit prevails between most public schools and charter schools. They do not see each other as allies and friends. On the contrary, the battle between public schools and charter schools has been intensifying with each passing year.

With the rise of privatized education arrangements like charter schools, we now have a fractured decaying society plagued by two sets of education arrangements mired in crisis. Charter school owners-operators have helped move society backward. Nothing has been solved. Instead, more divisions, conflicts, and losses have been inflicted on the majority and society. The “achievement gap,” largely a product of harsh class divisions in society, has not improved in any real and lasting way.

The way out of this deepening crisis is the same as the way out of all the crises society is mired in, namely to work with others to develop modern definitions, thinking, and practical politics that will deprive wealthy private interests of their ability to deprive of us of our power and rights. Supreme decision-making power, sovereignty, must lie with the people, not the financial oligarchy whose only concern is to enrich itself at the expense of the general interests of society. If all major education decisions keep being made by the top one percent of the top one percent, society and education will keep sliding backward. Only the working class and people can usher in a modern human-centered alternative. It is entirely possible and necessary to foster locally-controlled, fully-funded, world-class public schools available to all at all times. People do not need to be treated as narrow selfish consumers who fend for themselves like animals in their anxious quest to secure a great education for their kids in a society that lacks no funds and resources.

IQ, Equal Pay for Equal Work, Population Control, Mao, and Communism

“Prepare for Struggle, Prepare for Famine, Work for the People.”

Jordan Peterson posits IQ tests as indicators of intelligence and predictors of long-term success.1 This is not scientific. Intelligence is definitionally problematic as is designing tests to measure whatever is deemed to denote intelligence. Nowadays, intelligence is considered a multi-faceted concept that cannot be measured comprehensively and accurately by a paper-and-pencil test. Moreover, it is extremely difficult to isolate a multitude of other factors and attribute any result exclusively to intelligence; e.g., parental upbringing, socio-economic levels, health, spiritual beliefs, personal inclinations, etc. Into this mix Peterson adds conscientiousness, with the same problems of how to define and how to measure. So such studies would be subjective, and at best any experimental designs would provide correlational statistics. Even resorting to multivariate analyses would not be without problems.

Multivariate analyses are an aid to, not a substitute for critical thinking in the area of data analysis. Meaningful results can only be produced by these methods if careful consideration is given to questions of sample size, variable type, variable distribution etc., and accusations of subjectivity in interpretation can only be overcome by replication…. Perhaps a major cause of the continuing misuse of statistical methods is the insistence of many journal editors in psychology and related areas, on articles being laced with multivariate analyses, and on encouraging the pedantic use of signifance levels, i.e. the inevitable p less than minus, as if such inclusions lent an air of respectability to their journal which it might not otherwise have had…2

In addition, the argument on IQ tests and the role of conscientiousness in “success” and “happiness” is a mined territory because covertly it recalls the dark side of eugenics. If IQs and conscientiousness are the litmus tests for the rank and suitability of individuals in a given society, then how far are we from doctrines adopted by fascist states vis-à-vis their people? The argument becomes seriously explosive in the context of poverty, depending on how one construes the correlation between IQ and success. For instance, according to many sources, Americans living under the poverty line are over 40 million. A question: would Peterson be poised to say that their poverty is a direct function of their IQ and conscientiousness? Any one who dares to pose the question on IQ or conscientiousness must (1) examine their own shortcoming on both matters, and (2) examine the social, economic, and cultural factors conducive, functionally, to lower IQ and social adaptations. Caveat: examining is not a judgement but a process leading to assumptions that must be further tested for factual or theoretical validity.

Equal Pay for Equal Work

Although physicists can unravel the mathematical laws of the universe and rocket engineers can calculate how to launch several probes on missions throughout the solar system, according to Peterson, humans are incapable of determining what is equal. “The introduction of the ‘equal pay for equal work’ argument immediately complicates even salary comparison beyond practicality for one simple reason: who decides what work is equal? It’s not possible. That’s why the marketplace exists.” (loc 5403) And just how fair or effective as a distributive mechanism is the marketplace?

First, since the dawn of time, world societies and their economic systems have varied from Babylonia, Pharaonic civilization, ancient China, Rome, Islamic civilization, aggressive Mongolian expansionism, etc through to modern systems such as capitalism, socialism, communism, Italian fascism, social democracies, etc. Equal pay for all or advocating for equality of pay to all never existed. Roman soldiers took less that centurions, and engineers and artists took more than qualified labor and artisans. Early Islamic social laws, as distinct from religious laws, had legislated that qualified artisans and poets receive special pecuniary treatment, so also that the fighters that took less than their commanders did. Karl Marx, Fredrick Engels, and even Vladimir Lenin never advocated for equal pay because they acknowledged the important role of creativity and expertise in the making of a valid economic model.

Why does Peterson accept decision of payment being left to the marketplace regardless of equality for the work done? Is the marketplace an entity that popped into existence by itself? Or did it have human hands behind its creation? Of course humans brought about the formation of the marketplace. And which humans would be expected to benefit the most from such an entity? Or did he expect his readers to absorb his statement naively and leave it unchallenged? To make the point, is there a design behind Peterson’s many groundless assertions? In the end, it seems to me that Peterson’s phrase — “That’s why the marketplace exists” — is a poor ideological construct in terms of cause and consequence. Most likely, he came up with it to close a complex argument by pointing to the predictive power of personality characteristics, however, it does not develop as a compact sequential argument. And why should having a extroverted versus introverted personality, or an assertive versus relaxed demeanor demand differential pay for equal work? Peterson provides such as explanations for unequal pay for the same work; to be fair, he does not say such should be the case. But by leaving it up to the market to determine, Peterson by default chooses the status quo wealth and income allocation.

Second, Peterson is positing that the markets can better provide for fairness in remuneration. However, the grotesque inequality that exists in the world clearly adduces that Peterson is dead wrong.3 Does Peterson agree with a market that pays a CEO in a day what a company worker makes in a year? Remarkably, a system within which such unfairness and such inequality do exist is well known: it is called capitalism. Recently, a study has revealed that 26 persons own as much as 3.8 billion of the poorest people. How has this happened? What’s Peterson theory on the matter?

Yet Peterson writes, “Don’t blame capitalism, the radical left, or the iniquity of your enemies. Don’t reorganize the state until you have ordered your own experience. Have some humility. If you cannot bring peace to your household, how dare you try to rule a city?” (loc 2926)

And what if a person’s experience is unordered because of the mayhem of the state? What if the state is wreaking havoc with households? Did not the American Revolution occur because Great Britain was wreaking havoc with colonial households through unfair taxation? Does poverty not wreak havoc on households? By taking over a city, people may be able to implement a system and policies that bring about equality and peace. By equality, I mean equal opportunity to all people, with remuneration based on effort and sacrifice — although Peterson will throw up his arms and say something like we don’t know how to measure effort and sacrifice. But we will never know how to measure effort and sacrifice to Peterson’s pleasure until we start trying; because to leave things the way they are, to the caprice of the market, is just intellectual cowardice. We can be sure, however, that the marketplace itself does not know how to remunerate workers equitably for work done.

Peterson’s Rule 6 is: “Set your house in perfect order before you criticize the world.”

However, there are myriad personality, societal, and worldly factors (greed, sexism, racism, nationalism, war, etc) that work against setting up “perfect” order in one’s house. And what exactly is meant by “perfect” order, and is it even achievable? Perfection is an elusive, and probably unattainable, goal. Therefore, if perfection is unachievable, what Peterson in essence is telling us is tough luck, keep plugging away at trying to reach perfection, and in the meanwhile accept the world the way it is — however imperfect that may be.

If not the marketplace, then who decides what is equal pay for equal work? Of course we decide. We pool our brain power to determine criteria as to what is fair remuneration; afterwards we refine and tweak as is necessary. This is infinitely more sensible than sitting our collective butts and allowing the marketplace of fetid capitalism to lather the masses with inequity and penury.

Peterson opines:

We are not equal in ability or outcome, and never will be. A very small number of people produce much of everything. The winners don’t take all but they take the most, and the bottom is not a good place to be. People get sick there, and remain unknown and unloved. They waste their lives there. (loc 1784)

“We” (a pronoun used often by Peterson) are all different, certainly in many, many ways. We have different predilections, different desires, and different levels of skills. I avoid stating “different abilities” because abilities can be developed to higher levels through proper training and sheer hard work. Not every person is interested or inclined to sharpen their skills in certain endeavors to exhibit a high level of ability.

Granted we are not equal; everyone is superseded by someone else in some facet. Besides, being ranked number one is often subjective and usually ephemeral.

And I disagree emphatically with Peterson; it is the workers that produce most of what the public consumes. Managers and executives supervise and issue orders but produce little by way of physical work — and perhaps much of the intellectual effort comes from workers. In fact, many of the bourgeoisie may be considered leeches on the working class.

Peterson acknowledges the greed of the “winners.” However, I would not construe a group of humans who selfishly grab an inordinate lion’s share for themselves as “winners” while relegating the rest to a sick, unloved ignominy — quite the contrary.

Why does Peterson prioritize production as deciding distribution of wealth by the marketplace? Is production the end-all and be-all of humans? Does it supersede human attributes such as love, empathy, caring, and sharing?

Peterson is advocating dog-eat-dog capitalism. Fuck the market! It all boils down to what kind of world we want. How do we want our societies to look like? Our societies are a mirror unto who we are, unto our our sense of morality. Do we want and accept a society, as Peterson describes, composed of winners and losers? Do we accept joblessness despite the unemployed being desperate for work? Do we accept homelessness, the hungry, shanty towns, hygienic conditions, etc for any among us? Do any of us feel comfortable walking past someone obviously down-and-out?

Do we desire a society free from the ills that define a sick society?

Or do we roll the dice for each person and let the dice (i.e., the market) decide our happenstance?

Because in a sane and morally centered universe, the most meaningful abilities are the ones whereby we can provide warmth, succor, dignity, compassion, and love to our fellow humans.

Dominance is abhorrent. Enlightened thinkers are well aware of that. Hierarchies, excessive self-indulgence, and profligacy are not to be admired. If a permanent hierarchy, then love and altruism must situate at the pinnacle of the human hierarchy. Even primates have evolved altruistic behaviors.

What does it mean have abilities and only use them for self-serving reasons? What purpose, besides self-love and egoism, does it serve to sit on top of some hierarchy (other than a hierarchy dominated by altruism, love, and goodwill)? When Albert Einstein reached the pinnacle of fame as a physicist, did he preen and become self-important? No, Einstein remains a beloved scientist because he loved his fellow humans. Naturally, Einstein was a socialist.

Importantly, the world would be a better place without inequality. A recent book by Richard Wilkinson and Kate Pickett, The Inner Level: How More Equal Societies Reduce Stress, Restore Sanity and Improve Everyone’s Well-being,4 is a British empirical study that hearkens back to Karl Polanyi’s The Great Transformation that told of an age where equality and cooperation were the norm in society. A review of The Inner Level relates “how more equal societies reduce stress and improve wellbeing” for all of us.

The Monster Mao? China’s “one-child policy” and Cultural Revolution

Mao Zedong in Dandong, China 🄯 Photo by Kim Petersen

Peterson also takes potshots at Chinese communism, especially targeting Mao Zedong for vitriol. He employs wording designed to evoke the ire of the reader: “horrors,” “inferno,” “genocides,” “monster,” “totalitarians.”

“… the bottomless horrors of Hitler, Stain, and Mao.” (loc 2100)

“… the inferno of Stalinist Russia and Mao’s China…” (loc 3911) The wording of this sentence, however, points at the countries that Stalin and Mao live in rather than directly at the personnage.

“… the genocides of Stalin and the even greater monster Mao.” (loc 3947)

Peterson joins chairman Mao and the Cultural Revolution with China’s one-child policy: “… the horrors of Mao’s Cultural Revolution and its one-child policy.” (loc 5059)

Peterson is speaking loosely (although Peterson is emphatic about the importance of his words5 ) and inaccurately. First, the one-child policy was implemented in China in 1979. Mao Zedong died on 9 September 1976. During his life Mao was a mixed bag on child birth; initially he encouraged large families, but later he saw family planning as more important. It was in 1979 that the one-child policy was enacted under chairman Deng Xiaoping. Second, the one-child policy is not to be understood as an absolute. It applied particularly to the majority Han and especially in urban centers. Minorities and rural Chinese were not stringently regulated under this policy. Third, China had a rapidly growing population at the time the policy was enacted. China’s population has since reached 1.4 billion people. Some estimates say the policy resulted in 400 million fewer Chinese today. What would the population of China look like today without the one-child policy? And what demands would such a huge population pose for the environment, species extinction, quality of life, employment, and several other factors? Consider to what extent the one-child policy has had on curbing population growth and the fact that China today is the world’s largest economy slated to eliminate poverty in 2020.

As for the “monster Mao” a book review of Was Mao Really a Monster? wrote:

The continued attacks by anti-Communist academics and authors on the reputation and standing of Mao Zedong continue unabated. Indeed, they will last as long as there is a bourgeois class trying to prevent socialist revolution, or having failed to prevent it, trying to undermine it in order to restore capitalism.

Peterson points specifically to “Mao’s murderous Cultural Revolution.” (loc 5434)

Dongping Han, a history and political science teacher at Warren Wilson College in North Carolina, wrote a book that presents a different take on China’s Cultural Revolution than that of the western narrative which portrays great tumult across China, targeting intellectuals for re-education, and rampaging hordes committing violence. There were horrible excesses that occurred. Chinese know well of this, and several Chinese films chronicle the mayhem of the Cultural Revolution. But there were also important improvements in Chinese society. Focusing on Jimu, a rural area in Shandong province, Han details improved living conditions, democracy, health and education, infrastructure, and agricultural practices during this time.6

Furthermore, the Cultural Revolution as some westerners allege did not impact negatively China’s economic growth.7

Nonetheless, the Cultural Revolution, as well as the Great Leap Forward, must be seen, in many respects, as colossal blunders — blunders that cost the lives of far too many people and caused much suffering. Mao as the leader is accountable for the mistakes under his leadership. He was misguided; he became a megalomaniac. But Mao’s goals for the Chinese masses were noble, and he still has a great following among Chinese people.

Population Control

Peterson seems to think the more people on the planet, the merrier.

No one in the modern world may without objection express the opinion that existence would be bettered by the absence of Jews, blacks, Muslims, or Englishmen. Why, then, is it virtuous to propose that the planet might be better off, if there were fewer people on it? (loc 5091)

It is a false analogy. Peterson conflates religious identity, skin color, and nationality. Which sane person proposes this?

First, what Peterson’s hypothetical posits is alarming and genocidal, so morally based people do not express such an opinion. What betterment can be had by genocide?

Second, who claims it is “virtuous to propose” having a planet with fewer people? Whether such a proposal is virtuous or not is irrelevant. Relevant is whether managing the number of humans living in a finite ecosystem, such as Earth, would avert future dangers wrought by rampant population growth or even to bring about a betterment of the present human condition and the condition for the other species on the planet.

Third, as Peterson has worded it, what is proposed by others is depopulation, whereas a morally centered proposal would be for a lowering of the number of humans through birth control and not culling specific groups of people. If that is to be achieved through non-coercive means, then objection should be minimal. If through forced compliance, then there must be a logical and moral rationale for such a decision being reached, and it must have been reached through informed and genuine democratic means applied fairly across peoples and not result from a unilateral decision imposed on the entirety of peoples.

Fourth, there are logical and morally based reasons for limiting population growth that can be discussed elsewhere, among them are exacerbating global warming that imperils life on the planet, the scarcity of resources for sharing, extinction of animal life by human incursions into their territories, habitat despoliation by pollution, etc.

China and Communism

Communist China is currently world’s largest economy in terms of purchasing power parity. Many critics deny that China is communist. So what is communism in China? Godfree Roberts lists some important features of the Communist Party of China (CPC).

1. The Party’s Genesis. It was founded by Mao and others because Chinese governance needed a new look after the old one had apparently failed. In fact, it wasn’t that Confucian government had failed: it was because Chinese officials and the Emperor forgot Confucius’ instructions. So Mao called his revolution ‘communist’ even though Confucius’ teaching was much more radical than any written by Marx: The Common Good: Chinese and American Perspectives.

2. Membership qualifications. They must swear to serve the people first and enjoy the fruits of their service last.

3. Membership behavior. Most of the 90,000,000 Party members do, in fact, serve the people first and enjoy the fruits of their service last. That’s a lot of unselfish people and, when they act together, they can influence the whole country.

4. Party power. They use their power democratically and have dismissed several heads of State since 1950. They do not tolerate underperforming leaders as we do.

5. Leadership behavior. You can see that the Party’s leaders and theoreticians are substituting Confucian terminology for Marxist language. China is retiring to the Confucian roots it never left–only this time the Party is interpreting Confucius’ doctrine of compassion radically.

Roberts concludes by quipping, “Marx would be delighted.”

I will quibble with the conclusion of Roberts on point 5. Confucianism still has influence. However, CPC general secretary Xi Jinping stated, “In contemporary China upholding the theory of socialism with Chinese characteristics means upholding Marxism in its truest sense.”8 Under Xi’s chairmanship a widespread crackdown on corruption has been ongoing.

In stark contradistinction with neoliberalism, Xi emphasizes public ownership dominance.9 The success of socialism with Chinese characteristics will be determined by measuring the benefits accrued to the Chinese people10 — such as rights to education, employment, health care and care for senior citizens.11 Moreover, the benefits are envisioned as for all the world’s people.12

Xi states China is anti-imperialist, anti-colonialist, and anti-war. The rising dragon has a socialist market economy that strives for peace and universal security. This started with Mao Zedong leading his comrades to overthrow the despised Guomindang and establish communist governance in China.

Conclusion

Most of Peterson’s 12 rules are quite sensible. The rules, per se, are trite, cute, and sprinkled with home-cooked wisdom. My focus was Peterson’s digressions, many of which point to a self-assured intellect whose assertions and arguments often fall short. Peterson’s book 12 Rules for Life became more than just rules. A self-help book became an anti-communist polemic. Capitalism, atrocities wrought and abetted by capitalism, as well as capitalist gulags eluded criticism. Peterson digressed into political economy, history, wealth distribution, dominance hierarchies, gender differences, religion, free speech and censorship, and more. Peterson’s 12 Rules left this reader feeling unsatisfied and underwhelmed. The author needs to explain the deep themes that guide his elaboration and scope of work. Was his intention to grace readers with 12 idyllic rules of life, or was his undisclosed intent to warn us about the “evils of communism” over and above contemplating his rules?

Throughout 12 Rules, Peterson writes about the hardship of living: “Life is suffering. That’s clear. There is no more basic, irrefutable truth.”13 A misleading statement because life must not be viewed through such a parochial prism. Life is ecstasy, rapture, sorrow, pain, anger, jealousy, hate, love, and much more. This all points to Peterson, on certain matters, being a polemicist. He chooses one end of the pole and pronounces; the other pole, or points along the continuum are often, if not outright denied, just marginalized or ignored.

It is often said that money cannot buy happiness, but unmentioned by Peterson is that money can avoid many of the hardships and suffering that life throws at you. Yet, Peterson is too intelligent not to be aware of this. He skips this because his thinking is not about finding solutions but rather to describe the world as he sees it. Nonetheless, the ability to pay rent, put nutritious food on the table, put clothes on one’s back, and afford necessary transportation go a long way to easing hardships in life.

There are examples of communist governments that have eased the hardships of life and brought great improvements to their people. Cuban communism must be singled out for the great strides it has made during and since the Cuban Revolution — despite US sanctions.14 It is only fair to point out the achievements made by the communist government of the Democratic People’s Republic of Korea — despite US sanctions. Another, of course, is the communist government in China.

As Xi often states, China is only in the earliest stages of socialism,15 and communism is to be attained farther down the road.16 The CPC’s goal of ending poverty in China by 2020 is a massive step in the right direction. To the extent that Chinese socialism is successful, especially compared to the status of western capitalist countries, it poses a challenge to the capitalist classes in these countries. Why would the working class accept being relegated to the lower rungs of a society when they see Chinese in the future thriving in a classless China? China may become the template for an economic and social revolution that brings about a fairer distribution of income (something still lacking in China currently) elsewhere. China is an economic colossus whose success should throw light back on Cuba, North Korea, and also the great achievements made by the Bolivarian Revolution in Venezuela.

Despite the bombast of Jordan Peterson and Donald Trump, socialism remains a viable force for change in the world.

  1. Read Part 1, Part 2, Part 3, Part 4, and Part 5.17
  1. Jordan Peterson, 12 Rules for Life: An Antidote for Chaos, (Penguin Random House UK, 2018: loc 5372.
  2. BS Everett, Abstract to Multivariate analysis: the need for data, and other problems, British Journal of Psychiatry. March 1975, 126: 237-40.
  3. See Part 5.
  4. Allen Lane, London 2018.
  5. Peterson’s Rule 10 is: “Be precise in your speech.” Ergo, the words in 12 Rules must be seen as an accurate reflection of Peterson’s thinking: “I’m very, very, very careful with my words”
  6. See Dongping Han, The Unknown Cultural Revolution: Life and Change in a Chinese Village (Routledge, 2001).
  7. See Gwydion Madawc Williams, “Was the Cultural Revolution a success?” Quora, 11 February 2018.
  8. Xi Jinping, On the Governance of China, (Beijing: Foreign Languages Press, 2014): loc 230.
  9. Xi, loc 1275.
  10. Xi, loc 554.
  11. Xi, loc 707.
  12. Xi, loc 947, 4010.
  13. Jordan Peterson, loc 2947. See also locations 191, 335, 1787, 2768, 2909, 2959, 3780, 4048, 4765, and 5737.
  14. See Isaac Saney, Cuba: A Revolution in Motion, (Fernwood Publishing, 2004) and Arnold August, Cuba and Its Neighbours: Democracy in Motion, (Zed Books, 2013). Review.
  15. Xi, loc 352, 1566.
  16. It is anarchism that will bring about communal individuality and reduce inequality. See Alan Ritter, Anarchism: A Theoretical Analysis, (Cambridge University Press, 1980): 76-83. pdf.
  17. Apologies for the delay in getting out part 6, but I was in East Africa without laptop.

Enough Western Meddling and Interventions: Let the Venezuelan People Decide

American politicians from the two main parties have finally found something to agree upon: more intervention in Venezuela.

“Now, despite (President Nicolas) Maduro, there is hope (in Venezuela)”, wrote Democratic Senator, Dick Durbin, in USA Today. “These events (meaning the current political instability in the country) are a welcome development of Latin American nations defending democracy.”

“He’s picked a battle he can’t win,” Republican Senator, Marco Rubio, said, referring to Maduro in an interview, quoted in the New York Times. “It’s just a matter of time. The only thing we don’t know is how long it will take – and whether it will be peaceful or bloody.”

This unprecedented unity between Democrats and Republicans reflects an American legacy that precedes the current Donald Trump Administration by nearly two centuries. In fact, it goes much further and deeper than the US hegemonic approach to South America, to encompass the entire Western political hemisphere, with the exception of Italy, Norway and Greece.

The West’s love-affair with intervention has little to do with restoring democracy, either in Venezuela, or anywhere else. ‘Democracy’ has been used throughout the 20th century as a tool that provided legal and moral rationalization for US and Western meddling. It matters little to Western leaders that Maduro was elected in presidential elections deemed ‘transparent‘ by international observers in May 2018.

Notwithstanding Maduro’s own shortcomings in uniting his people in the face of a most pressing economic crisis, what gives Trump, Canada’s Justin Trudeau, France’s Emmanuel Macron the right to cast a deciding vote on who rules over Venezuela?

Sadly, Venezuela is neither the precedent, nor the exception. South America – as are the Middle East and Africa – has for long been perceived as if a Western protectorate going back many years. They are all rich with oil and other essential raw materials, but are also strategically significant in terms of global hegemony. Colonialism might have ended in its traditional form (with Palestine being the main exception) but it lives on in other ways.

While the US and its Western allies are strongly challenged by rising economic and military powers in Asia, the fate of South America, the Middle East and Africa is yet to be decided. The US, in particular, has always viewed South America as its own turf, and has either directly or indirectly contributed to coups, political and economic instability throughout the region.

US National Security Adviser, John Bolton, has garnered a terrible reputation due to his role in the invasion of Iraq and the subsequent destabilization of the Middle East. Although discredited for his thoughtless and often militant approach to politics, he was resurrected by the Trump administration and is now travelling the world sowing the seeds of political and military discord.

While speaking about Washington’s need to “protect democracy” in Venezuela, Bolton admitted that a coup in Venezuela is an opportunity to exploit the country’s vast oil and natural resources.

Bolton explained the economic logic of US intervention in an interview with Fox News, soon after Venezuelan opposition leader and a main ally of the US, Juan Guaidó, declared himself an ‘interim president’ on January 23.

A regime change in Venezuela “will make a big difference to the United States economically, if we could have American oil companies invest in and produce the oil capabilities in Venezuela,” Bolton said.

But how is that to be achieved?

During a press conference at the White House a few days after the coup, Bolton “appeared to disclose confidential notes written on a yellow pad that included a plan to send US troops to Colombia,” in preparation for a military intervention in Venezuela.

Hasn’t Iraq quelled Bolton’s appetite for intervention, considering that the entire Middle East region now subsists in political uncertainty and unrelenting wars? And if Bolton is yet to get a hint that the world is rapidly changing, and that it behooves his country to reconsider its destructive interventionist foreign policy, why are Democrats joining in, along with the ‘liberal’ and ‘socialist’ European powers?

“Old habits die hard,” as the saying goes, and it seems that Western politicians refuse to abandon the old interventionist maxim and colonialist mentality through which they ruled the world for far too long.

This view is not meant to undermine the horrific economic conditions in Venezuela or overlook the endemic corruption in that country, which need to be understood and, if needed, criticized. But while the Venezuelan people have every right to protest their government, demanding greater accountability and economic solutions to the crushing poverty facing the country, no one has the right to meddle in the affairs of Venezuela or any other sovereign country, anywhere.

Moreover, it must be clear that neither the US nor its allies are interested in helping Venezuela to overcome its economic woes. In fact, they seem to be doing everything in their power to exacerbate the problem.

Hyperinflation and the crumbling of Venezuela’s oil industries led to a dramatic economic downturn in recent years, with about ten percent of the population fleeing the country. Poor policy choices also led to the significant weakening of local production and increasing devaluation of the country’s currency.

Venezuela has been a target on the American radar for many years. The deterioration of its economy, however, was the perfect opportunity for the US to trigger its Venezuelan allies into action, this leading to the current coup and political stalemate.

But those counting on the US to stabilize Venezuela in the long run are ignorant of history. The US government has hardly ever been a source of stability in South America, certainly not since the Monroe Doctrine of 1823. Since then, the US has done more than mere meddling, but engaged in outright political and military interventions.

The situation in Venezuela is dire, with children reportedly dying as a result of the lack of medicine and food. The country is also gearing up for a US military intervention and possible civil war.

Considering that all of these tragic predictions have already been witnessed in Iraq, Syria, Libya and elsewhere, South American leaders, and the few sensible voices around the world must move to block any further US meddling, and allow the people of Venezuela, through democracy, to determine their own future.

Cuba: “The Equilibrium of the World” and Economy of Resistance

The Forth International Conference for “The Equilibrium of the World” took place in Havana., Cuba from 28 to 31 January 2019. The Conference, organized by the José Marti Project of International Solidarity, was sponsored by UNESCO and a number of local and international organisms and NGOs. It coincided with the 60th Anniversary of the Cuban Revolution and as such was also a celebration of that successful demonstration to the world that socialism, solidarity and love for life can actually survive against all odds and, yes, Cuba, has faced more hardship than any other country in recent history, through boycotts, embargoes and all sorts of economic sanctions, heinous military infiltrations and assassination attempts, initiated by the United States and followed, largely under threats from Washington, by most of the western world.

Viva Cuba!  A celebration well deserved and in the name of José Marti, who was born 166 years ago, but whose thoughts and spiritual thinking for a new world are as valid today as they were then. They may perhaps best be summarized as love, solidarity, justice, living well for all and in peace. These principles were taken over by Fidel and Raul Castro, Che and Hugo Chávez. They transcend current generations and reach far beyond Latin America.

The conference had many highlights; brilliant speakers; a torch march was organized at the University of Havana in honor of José Marti; and the organizers offered the participants an extraordinary music and modern ballet performance at the National Theater.

From my point of view some of the important messages came from the representative of China, who talked about the New Silk Road, or the Belt and Road Initiative (BRI), of building bridges and connecting countries and people, whereas the west was building walls. A Russian speaker sadly admitted that it took his government a long time and relentless trying to build alliances with the west, until they realized, relatively recently, that the west could not be trusted. Professor Adan Chavez Frias Chavez, Hugo’s brother, described an invasive history over the past 100 years by the United States of Latin America and called upon the brother nations of the Americas and the world to bond together in solidarity to resist the empire’s infringement and steady attempts to subjugate sovereign nations with a vision towards a multipolar world of equals, of sovereign nations living together in peaceful relations.

*****

My own presentation focused on Economy of Resistance. And what a better place than Cuba to talk about economy of resistance! Impossible. Cuba has a 60-year history of successful resistance against a massive embargo, ordered by Washington and followed by almost the entire western world, thus demonstrating that the west has been reduced to a US colony. This was true already during the Cold War, but became even clearer when the Soviet Union “fell”. Here too, the west, led by Washington, was instrumental in the collapse of the USSR – but that’s another story – and the US grabbed the opportunity to become the emperor of a unipolar world. Cuban troops also resisted and conquered the attempted US Bay of Pigs (Playa Girón) invasion launched by President Kennedy in 1961, and not least, Fidel Castro survived more than 600 CIA initiated assassination attempts.

The principles of Economy of Resistance cover a vast domain of topics with many ramifications. This presentation focused on four key areas:

  • Food, medical and education sovereignty
  • Economic and financial sovereignty
  • The Fifth Column; and,
  • Water Resources: A human right and a vital resource for survival.

On food, health and education sovereignty – Cuba is 100% autonomous, as far health and education go.

However, Cuba imports more than 70% of the food her citizens consume and that, at present, mostly from the European Union. Cuba has the capacity and agricultural potential to become not only fully self-sufficient, but to develop and process agricultural produce into an agricultural industry and become a net exporter of agricultural goods.

This process might be addressed as a priority policy issue. However, it will take some time to fully implement. Meanwhile, it may be wise to diversify imports from other parts of the world than the EU – i.e. Russia, China, Central Asia, friendly ALBA countries – because Europe is not trustworthy. They tell you today, they will always honor your purchasing contracts, but if the empire strikes down with sanctions, as they did recently for anyone doing business with Iran, Cuba may be “cooked”.

Spineless Europe will bend to the orders of Washington. They have demonstrated this time and again, not least with Iran, despite the fact that they signed the so-called Nuclear Deal, the Joint Comprehensive Plan of Action, or JCPOA, on 14 July 2015 (the permanent members of the United Nations Security Council – the United States, UK, Russia, France, and China—plus Germany and the EU – and Iran), after which Obama lifted all sanctions with Iran only to have Trump break the agreement and reimpose the most draconian sanctions on Iran and on enterprises doing business with Iran. The US government, and by association Europe, does not adhere to any agreement, or any international law, for that matter, when it doesn’t suit them. There are plenty of indications – Venezuela today, to be followed by Nicaragua and Cuba. These should be valid signals for Cuba to diversify her food imports until full self-sufficiency is achieved.

Already in 2014, Mr. Putin said the ‘sanctions’ were the best thing that could have happened to Russia. It forced her to revamp her agriculture and rebuild her industrial parks with the latest technology – to become fully independent from imports. Today, sanctions are a mere propaganda tool of the west, but they have hardly an impact on Russia. Russia has become the largest wheat exporter in the world. – Cuba could do likewise. She has the agricultural potential to become fully food-autonomous.

On Economic and financial sovereignty four facets are being addressed. The first one, foreign investments, Cuba may want to focus on (i) technology; (ii) assuring that a majority of the investment shares remain Cuban; (iii) using to the extent possible Cuba’s own capital (reserves) for investments. Foreign capital is bound to certain conditionalities imposed by foreign investors, thus, it bears exchange rate and other risks, to the point where potential profits from foreign assets are usually discounted by between 10% and 20%; and (iv) last but not least, Cuba ought to decide on the sectors for foreign investors – NOT the foreign investor.

Following scenario, as propagated by opposition lawyer and economist, Pablo de Cuba, in Miami, should be avoided:

Cuba cedes a piece of her conditions of sovereignty and negotiates with foreign investors; puts a certain amount of discounted debt at the creditors’ disposal, so as to attract more investments in sectors that they, the investors choose, for the internal development of Cuba.

As the hegemony of the US dollar is used to strangle any country that refuses to bend to the empire, a progressive dedollarization is of the order, meaning, in addition to the US dollar itself, move progressively away from all currencies that are intimately linked to the US dollar; i.e., Canadian and Australian dollars, Euro, Yen, Pound Sterling and more. This is a strategy to be pursued in the short- and medium term, for the protection against more sanctions dished out by the US and its spineless allies.

Simultaneously, a rapprochement towards other monetary systems, for example, in the east, especially based on the Chinese gold-convertible Petro-Yuan, may be seriously considered. Russia and China, and, in fact, the entire SCO (Shanghai Cooperation Organization), have already designed a monetary transfer system circumventing the western SWIFT system, which has every transaction channeled through and controlled by a US bank. This is the key motive for economic and financial sanctions. There is no reason why Cuba could not (gradually but pointedly) join such an alternative system, to move out of the western claws of embargo. The SCO members today encompass about half of the world population and control one third of the globe’s GDP.

Drawbacks would be that the import markets would have to be revisited and diversified, unless western suppliers would accept to be paid in CUC, or Yuan through a system different from SWIFT. Moving away from the western monetary transfer system may also impact remittances from Cubans living in the US and elsewhere in the west (about US$ 3.4 billion – 2017 – less than 4% of GDP). It would mean departing from monetary transactions in the Euro and European monetary zones.

Be aware – the future is in the East. The West is committing slowly but steadily suicide.

Another crucial advice is – stay away from IMF, World Bank, Inter-American Development Bank (IDB), World Trade Organization (WTO) – and the like. They are so-called international financial and trade organizations, all controlled by the US and her western “allies” and tend to enslave their clients with debt.

Case in Point, Mexico: President Andres Manuel Lopez Obrador (AMLO), a leftist, has little margin to maneuver Mexico’s economy, inherited from his neoliberal predecessor, Enrique Peña Nieto. Mexico’s finances are shackled by the international banking system, led by the IMF, FED, WB and by association, the globalized Wall Street system. For example, AMLO intended to revive PEMEX, the petroleum state enterprise. The IMF told him that he first had to “financially sanitize” PEMEX, meaning putting PEMEX through a severe austerity program. The banking community agreed. In case AMLO wouldn’t follow their “advice”, they might strangle his country.

CUC versus the Peso, a dual monetary system (CUC 1 = CuP 25.75), has also been used by China up to the mid-80s and by Germany after WWI, to develop export / import markets. However, there comes a time when the system could divide the population between those who have access to foreign currencies (CUC-convertible), and those who have no such access.

Also, the convertibility of the CUC with the Euro, Swiss franc, Pound Sterling and Yen, make the CUC, de facto, convertible with the dollar – hence, the CUC is dollarized. This is what Washington likes, to keep Cuba’s economy, despite the embargo, in the orbit of the dollar hegemony which will be used in an attempt to gradually integrate Cuba into the western, capitalist economy.  However, Washington will not succeed. Cuba is alert and has been resisting for the last 60 years.

The Fifth Column refers to clandestine and / or overt infiltration of opposing and enemy elements into the government. They come in the form of NGOs, US-CIA trained local or foreigners to destabilize a country – and especially a country’s economy – from inside.

There are ever more countries that do not bend to the dictate of the empire and are targets for Fifth Columns – Russia, China, Iran, Syria, Venezuela, Pakistan and more – and Cuba.

The term, “Fifth Column” is attributed to General Emilio Mola, who during the Spanish civil war in 1936, informed his homologue, General Francisco Franco, that he has four columns of troops marching towards Madrid, and that they would be backed by a “fifth column”, hidden inside the city. With the support of this fifth column he expected to finish with (the legitimate) Republican government.

The process of “infiltration” is becoming ever more sophisticated, bolder and acting with total impunity. Perhaps the most (in)famous organization to foment Fifth Columns around the world, among many others, is the National Endowment for Democracy (NED), the extended arm of the CIA. It goes as a so-called NGO, or ‘foreign policy thinktank’ which receives hundreds of millions of dollars from the State Department to subvert non-obedient countries’ governments, bringing about regime change through infiltration of foreign trained, funded and armed disruptive forces, sowing social unrest and even “civil wars”. Cases in point are Ukraine, Syria, Afghanistan, Sudan, Somalia, Libya – and more – and now they attempt to topple Venezuela’s legitimate, democratically elected Government of Nicolás Maduro.

They work through national and international NGOs and even universities in the countries to be ‘regime changed’. Part of this ‘Infiltration” is a massive propaganda campaign and intimidation on so-called allies, or client states. The process to reach regime change may take years and billions of dollars. In the case of Ukraine, it took at least 5 years and 5 billion dollars. In Venezuela, the process towards regime change started some 20 years ago, as soon as Hugo Chavez was elected President in 1998. It brought about a failed coup in 2002 and was followed by ever increasing economic sanctions and physical military threats. Earlier this year, Washington was able to intimidate almost all of Europe and a large proportion of Latin America into accepting a US-trained implant, a Trump puppet, Juan Guaidó, as the interim president, attempting to push the true legitimate Maduro Government aside.

To put impunity to its crest, the Trump Government blocked 12 billion dollars of Venezuela’s foreign reserves in NY bank accounts and transferred the authority of access to the money to the illegitimate self-appointed interim president, Juan Guaidó. Along the same lines, the UK refused to return 1.2 billion dollars-worth of Venezuelan gold to Caracas. All these criminal acts would not be possible without the inside help, i.e. the “Fifth Column”, the members of which are often not readily identifiable.

It is not known, how often the empire attempted ‘regime change’ in Cuba. However, none of these attempts were successful. The Cuban Revolution will not be broken.

Water resources is a Human Right and a vital component of an economy of resistance.

Water resources will be more precious in the future than petrol. The twin satellites GRACE (Gravity Recovery and Climate Experiment) discovered the systematic depletion of groundwater resources throughout the world, due to over-exploitation and massive contamination from agriculture and industrial waste. Examples, among many, are the northern Punjab region in India with massive, inefficient irrigation; and in Peru the Pacific coastal region, due to inefficient irrigation, unretained runoff rain- and river water into the Pacific Ocean, and destruction of entire watersheds through mining.

Privatization of water resources, not only of drinking water and water for irrigation, but of entire aquifers, is becoming an increasing calamity for the peoples of our planet. Again, with impunity, giant water corporations, led by France, the UK and the US are gradually and quietly encroaching on the diminishing fresh water resources, by privatizing them, so as to make water a commodity to be sold at “market prices”, manipulated by the water giants, hence, depriving ready access to drinking water to an ever-growing mass of increasingly impoverished populations, victims of globalized neoliberal economies. For example, Nestlé and Coca Cola have negotiated with former Brazilian President Temer, and now with Bolsonaro, a 100-year concession over the Guaraní aquiver, the largest known, renewable freshwater underground resource, 74% of which is under Brazil. Bolsonaro has already said he would open up the Amazon area for private investors. That could mean privatization of the world’s largest pool of fresh water – the Amazon basin.

Economic Resistance means water is a human right and is part of a country’s sovereignty; water should NEVER be privatized.

For Cuba rainwater – on average about 1,300 mm / year – is the only resource of fresh water. Cuba, like most islands, is vulnerable to rainwater runoff, estimated at up to 80%. There are already water shortages during certain times of the year, resulting in droughts in specific regions. Small retention walls may help infiltrate rainwater into the ground, and at the same time regulate irrigation, provide drinking water and possibly generate electricity for local use through small hydroelectric plants.

The National Water Resources Institute (INRH – Instituto Nacional de Recursos Hidráulicos), is aware of this issue and is formulating a forward-looking water strategy and planning the construction of infrastructure works to secure a countrywide water balance.

Other challenges include the hygienic reuse and evacuation of waste water, as well as in the medium to long run an island-wide Integrated Water Resources Management (IWRM).

In Conclusion, Economic Resistance might be summarized as follows:

  • Self-sufficiency in food, health services and education. Cuba has achieved the latter two and is now aiming at achieving 100% agricultural autonomy – and in the meantime is advised diversifying food import markets.
  • Economic and financial sovereignty, including progressive dedollarization, deglobalizing monetary economy and creating internal monetary harmony.
  • The “Fifth Column” – always be aware of its existence and with perseverance keep going on the path of past successes, preventing the Fifth Column’s destabilizing actions.
  • Water resources autonomy – achieving countrywide Integrated Water Resources Management, with focus on protection, conservation and efficient water use.