Category Archives: Economy/Economics

Neoliberalism Has Met Its Match in China

Ellen Brown chairs the Public Banking Institute and has written thirteen books, including her latest, Banking on the People: Democratizing Money in the Digital Age.  She also co-hosts a radio program on PRN.FM called It’s Our Money.

When the Federal Reserve cut interest rates on July 31 for the first time in more than a decade, commentators were asking why. According to official data, the economy was rebounding, unemployment was below 4%, and GDP growth was above 3%. If anything, by the Fed’s own reasoning, it should have been raising rates.

The explanation of market pundits was that we’re in a trade war and a currency war. Other central banks were cutting their rates and the Fed had to follow suit, in order to prevent the dollar from becoming overvalued relative to other currencies. The theory is that a cheaper dollar will make American products more attractive on foreign markets, helping our manufacturing and labor bases.

Over the weekend, President Trump followed the rate cuts by threatening to impose a new 10% tariff on $300 billion worth of Chinese products effective September 1. China responded by suspending imports of U.S. agricultural products by state-owned companies and letting the value of the yuan drop. On Monday, August 5, the Dow Jones Industrial Average dropped nearly 770 points, its worst day in 2019. The war was on.

The problem with a currency war is that it is a war without winners. This was demonstrated in the beggar-thy-neighbor policies of the 1930s, which just prolonged the Great Depression. As economist Michael Hudson observed in a June 2019 interview with Bonnie Faulkner, making American products cheaper abroad will do little for the American economy, because we no longer have a competitive manufacturing base or products to sell. Today’s workers are largely in the service industries – cab drivers, hospital workers, insurance agents and the like. A cheaper dollar abroad just makes consumer goods at Walmart and imported raw materials for US businesses more expensive. What is mainly devalued when a currency is devalued, says Hudson, is the price of the country’s labor and the working conditions of its laborers. The reason American workers cannot compete with foreign workers is not that the dollar is overvalued. It is due to their higher costs of housing, education, medical services and transportation. In most competitor countries, these costs are subsidized by the government.

America’s chief competitor in the trade war is obviously China, which subsidizes not just worker costs but the costs of its businesses. The government owns 80% of the banks, which make loans on favorable terms to domestic businesses, especially state-owned businesses. Typically, if the businesses cannot repay the loans, neither the banks nor the businesses are put into bankruptcy, since that would mean losing jobs and factories. The non-performing loans are just carried on the books or written off. No private creditors are hurt, since the creditor is the government, and the loans were created on the banks’ books in the first place (following standard banking practice globally).

As observed by Jeff Spross in a May 2018 Reuters article titled “China’s Banks Are Big. Too Big?”:

[B]ecause the Chinese government owns most of the banks, and it prints the currency, it can technically keep those banks alive and lending forever.…

It may sound weird to say that China’s banks will never collapse, no matter how absurd their lending positions get. But banking systems are just about the flow of money.

Spross quoted former bank CEO Richard Vague, chair of The Governor’s Woods Foundation, who explained, “China has committed itself to a high level of growth. And growth, very simply, is contingent on financing.” Beijing will “come in and fix the profitability, fix the capital, fix the bad debt, of the state-owned banks … by any number of means that you and I would not see happen in the United States.”

To avoid political and labor unrest, Spross wrote, the government keeps everyone happy by keeping economic growth high and spreading the proceeds to the citizenry. About two-thirds of Chinese debt is owed just by the corporations, which are also largely state-owned. Corporate lending is thus a roundabout form of government-financed industrial policy – a policy financed not through taxes but through the unique privilege of banks to create money on their books.

China thinks this is a better banking model than the private Western system focused on short-term profits for private shareholders. But U.S. policymakers consider China’s subsidies to its businesses and workers to be “unfair trade practices.” They want China to forgo state subsidization an it’s d other protectionist policies in order to level the playing field. But Beijing contends that the demanded reforms amount to “economic regime change.” As Michael Hudson puts it:

This is the fight that Trump has against China.  He wants to tell it to let the banks run China and have a free market.  He says that China has grown rich over the last fifty years by unfair means, with government help and public enterprise.  In effect, he wants the Chinese to be as threatened and insecure as American workers.  They should get rid of their public transportation.  They should get rid of their subsidies.  They should let a lot of their companies go bankrupt so that Americans can buy them.  They should have the same kind of free market that has wrecked the US economy. [Emphasis added.]

Kurt Campbell and Jake Sullivan, writing on August 1 in Foreign Affairs (the journal of the Council on Foreign Relations), call it “an emerging contest of models.”

An Economic Cold War

In order to understand what is happening here, it is useful to review some history. The free market model hollowed out America’s manufacturing base beginning in the Thatcher/Reagan era of the 1970s, when neoliberal economic policies took hold. Meanwhile, emerging Asian economies, led by Japan, were exploding on the scene with a new economic model called “state-guided market capitalism.” The state determined the priorities and commissioned the work, then hired private enterprise to carry it out. The model overcame the defects of the communist system, which put ownership and control in the hands of the state.

The Japanese state-guided market system was effective and efficient – so effective that it was regarded as an existential threat to the neoliberal model of debt-based money and “free markets” promoted by the International Monetary Fund (IMF). According to William Engdahl in A Century of War, by the end of the 1980s Japan was considered the leading economic and banking power in the world. Its state-guided model was also proving to be highly successful in South Korea and the other “Asian Tiger” economies. When the Soviet Union collapsed at the end of the Cold War, Japan proposed its model for the former communist countries, and many began looking to it and to South Korea as viable alternatives to the U.S. free-market system. State-guided capitalism provided for the general welfare without destroying capitalist incentive. Engdahl wrote:

The Tiger economies were a major embarrassment to the IMF free-market model.  Their very success in blending private enterprise with a strong state economic role was a threat to the IMF free-market agenda.  So long as the Tigers appeared to succeed with a model based on a strong state role, the former communist states and others could argue against taking the extreme IMF course.  In east Asia during the 1980s, economic growth rates of 7-8 per cent per year, rising social security, universal education and a high worker productivity were all backed by state guidance and planning, albeit in a market economy – an Asian form of benevolent paternalism.

Just as the U.S. had engaged in a Cold War to destroy the Soviet communist model, so Western financial interests set out to destroy this emerging Asian threat. It was defused when Western neoliberal economists persuaded Japan and the Asian Tigers to adopt the free-market system and open their economies and their companies to foreign investors. Western speculators then took down the vulnerable countries one by one in the “Asian crisis” of 1997-98. China alone was left as an economic threat to the Western neoliberal model, and it is this existential threat that is the target of the trade and currency wars today.

If You Can’t Beat Them …

In their August 1 Foreign Affairs article, titled “Competition without Catastrophe,” Campbell and Sullivan write that the temptation is to compare these economic trade wars with the Cold War with Russia; but the analogy, they say, is inapt:

China today is a peer competitor that is more formidable economically, more sophisticated diplomatically, and more flexible ideologically than the Soviet Union ever was. And unlike the Soviet Union, China is deeply integrated into the world and intertwined with the U.S. economy.

Unlike the Soviet Communist system, the Chinese system cannot be expected to “crumble under its own weight.” The US should not expect or want to destroy China, say Campbell and Sullivan. Rather, we should aim for a state of “coexistence on terms favorable to U.S. interests and values.”

The implication is that China, being too strong to be knocked out of the game as the Soviet Union was, needs to be coerced or cajoled into adopting the neoliberal model. It needs to abandon state support of its industries and ownership of its banks. But the Chinese system, while obviously not perfect, has an impressive track record for sustaining long-term growth and development. While the U.S. manufacturing base was being hollowed out under the free-market model, China was systematically building up its own manufacturing base, investing heavily in infrastructure and emerging technologies; and it was doing this with credit generated by its state-owned banks. Rather than trying to destroy China’s economic system, it might be more “favorable to U.S. interests and values” for us to adopt its more effective industrial and banking practices.

We cannot win a currency war by competitive currency devaluations that trigger a “race to the bottom,” and we cannot win a trade war by competitive trade barriers that simply cut us off from the benefits of cooperative trade. More favorable to our interests and values than warring with our trading partners would be to cooperate in sharing solutions, including banking and credit solutions. The Chinese have proven the effectiveness of their public banking system in supporting their industries and their workers. Rather than seeing it as an existential threat, we could thank them for test-driving the model and take a spin in it ourselves.

Gender Neutral Pronouns While Nukes Go Unregulated

Charlie Hill, Oneida-Mohawk-Cree: “A Redneck told me to go back where I came from, so I put a tipi in his backyard.”

What exactly is the size and shape and breadth of that infamous straw that broke the camel’s back? One thousand more African-American youth murdered by cops this year in US of A? One million more people this year leaving homelands because of climate change? One billion more people making less than $2 a day? Flotilla of icebergs floating down the Baja coast? Epstein-Trump-Clinton-Woody Allen on tape raping boys and girls?

See the source image

Yet, well, how many toxins, how many chemicals, how much sewage in freshwater and how many oil spills on beaches, and how much radioactivity, and how many EMF’s will it take for that camel’s back to crack? Oh, those great white men and women telling you how many cancer-causing, hormone-disrupting, DNA-morphing, chronic illness-producing poisons should be allowed on the corn flakes and potato chips! Read on:

*Health harms

Human exposure to atrazine is linked to a number of serious health effects. A potent endocrine disrupter, atrazine interferes with hormonal activity of animals and humans at extremely low doses.

Endocrine Disruption: The science on atrazine’s effects on the hormone system continues to grow. It alters the levels of key hormones in rats and can delay puberty. In male frogs, exposure to atrazine causes a kind of “chemical castration,” causing them to develop female sex characteristics. Researchers hypothesize that atrazine signals the conversion of testosterone to estrogen, demasculinizing the frogs.

Reproductive Effects: Because atrazine disrupts hormones, it’s not surprising that epidemiological studies find associations between exposure to the herbicide and reproductive effects including increased risk of miscarriage, reduced male fertility, low birth weight, increased chance of any birth defect, and higher incidence of abdominal defects;

Cancer: Evidence for the carcinogenic potential of atrazine is growing — exposure has been linked to elevated risk of breast and prostate cancer. The recent President’s Cancel Panel Report notes that atrazine has possible carcinogenic properties. In response to concerns, U.S. EPA is currently re-evaluating atrazine’s carcinogenic potential.

[or….]

See the source image

Scientist Dr. Emily Marquez, who spoke at the DARTIC hearing in Sacramento, said this:

The committee made the right decision in light of the scientific evidence. Chlorpyrifos is neurotoxic and the Prop 65 listing affirms what scientists, doctors and communities have been saying for years – children’s developing brains are incredibly vulnerable to low amounts of the chemical during critical windows of development. State regulators should follow today’s decision by finally taking this chemical off the market.

15 years later . . .
It’s not new news that chlorpyrifos harms brains, particularly children’s developing brains. Research showing this was the impetus behind banning the chemical from home use more than 15 years ago. But progress on getting this chemical out of agricultural fields, and off of food crops, has been slow thanks in large part to the focused attention of its manufacturer, Dow Chemical.

On the national stage, Dow’s influence was made clear earlier this year when, after closed door meetings with the company’s CEO, newly appointed EPA Administrator Scott Pruitt made the surprising announcement that he wasn’t going ban the use of chlorpyrifos on food crops — as the agency had previously announced it would do based on its own scientific analysis.

I was on the radio yesterday, SOS Spokane with KYRS-FM, my old radio station when I had an hour show, Tipping Points: Voices from the Edge, a weekly public affairs show where I had all sorts of guest on, a veritable list of greats (a few so-so’s) both local and national. Winona LaDuke, Bill McKibbeon, David Suzuki, Naomi Wolf, Naomi Klein, Amy Goodman, Jeremy Scahill, and so many more whose names are not household names, but amazing authors and scientists and literary types — James Howard Kunstler, Novella Carpenter, Richard Heinberg, Richard Wrangham, Tim Flannery, so-so many more!

It was a look back (and forward) on my 10 years in Spokane organizing, writing columns, doing special reports for magazines and newspapers, teaching college, and more-more, including another graduate degree (urban planning), helping raise a child, literary and non-literary publishing, and environmental organizing. A fellow named Paul Potocky hosts it, and  it was both fun and frustrating to be back on the air.

Big issues, like, how do we fix our education system, how to fix the mush and propaganda of Media, how to deal with cities like Spokane spending hundreds of thousands of dollars on paid shills/people rallying the rest of the country to move to the town (how many other big and small communities do the same?), how to get lefties off their asses and to quit griping over other lefties’ nuanced beliefs, climate change, etc.

Here’s my beef — Paul is an old lefty, and he’s retired, and he is in a community within a community — left-leaners but people who will never ever criticize the powers that be or the town itself. In the end, the new black is green or social services or legal aid, or what have you. People in the left-leaning arena are not willing to go full blast on criticizing America, the white supremacist threads of heavy gauge wire binding the minds of the left-leaners. They are not there to put stops on growth, to really look deeply at the embedded capitalists in the colleges that are part of Spokane, and the rah-rah small town folk but mean as cuss people who love a good Trump sexist, racist, wacko Christian joke. Spokane wants growth, Spokane wants a fulfillment (sic — a devil’s den) center from head Devil, Jeff “Amazon-Monopoly-and-Slaver” Bezos, and Spokane wants more roads, no public transportation. Spokane has a drug, depression, drop-out, decaying neighborhoods, dragging intellect problem, and the city wants to forget about the dispossessed, the near-homeless, and aging, chronically ill peeps.

When you go to a county or city meeting, the people that are the movers and shakers are developers, builders, and a few in various city-county departments. The town, like many towns, is non-responsive to we the people, but rather, we the money bags.

The very idea of “fixing things” means getting rid of things, stopping this digitalization of everything, this new disruptive and demeaning economies of scale, economies of hate, economies of monopolizing pigs who run the show. Paul and I quibbled over the media, or really, the Press. I posit that we need small rags back, more neighborhood and community broadsheets and newsletters and monthlies and weeklies — grassroots — on the streets. We need more readers. He thinks that since the cat is out of the bag, that there is no going back to a newspaper-newsprint hard copy time.

I disagree, and now is the time to teach young people how to resurrect mimeographs and typesetting, cold or hot. Time to have groups go after all levels of bad government and worse than bad business and those chamber of commerce felons.

Imagine, ten thousand or more people hitting the streets of a town like Spokane. Snap-snap-snap of maleficence, and more and more prying into the problems facing its citizens, with no salvation or solutions coming from the top, the ones who love those trendy Portlandesque bars and food emporiums and bad ass cafes.

There is no rabid, frothing, scabies-infested cat out of the bag we can’t stuff back in and gas back into euthanasia heaven.

We could say that, well, now that the cat is out of the bag in PK12 education — the common “killing” core/standardized testing brought to us by Gates-Pearson-Eli Brand — there’s no turning back. Or, now that we are completely surveilled and our lives dictated by a few chosen people vis-a-vis their schemes of anti-democratic info-biometric-history-DNA collecting, there’s no putting that black plague infected cat back in the bag. Same with all the toxins being foisted on us all, daily, and all the illegal wars not-in-our-name; all the illegal financial-real estate-insurance fraud, those distemper filled cats are out of the bag, so why attempt to change those systems of penury and structural violence? Universities that are colonized by the Koch Brothers and Fortune 1000 Companies of Fraud, well, those leukemia-finished cats are also out of the bag, so also give up?

Nope — Zapata: I would rather die on my feet than to live on my knees.

In fact, the foundation to any revolution and radical (root) change in this un-Democracy is more robust discourse, discussion, and coverage — by local entities, by local various forms of media!

This chipping away at America, or putting in better wires and cloud servers just to say new is new and better is in the mind’s eye, just allows the oppressors to do their dirty deeds quicker, more pervasively, and with a Nazi’s efficiency and Eichmann cold heart and Goebbels collective double- and triple-tap to the human brain and eco-landscape to completely confuse the population.

My thesis is to have these conversations many many more times, daily, and with more radically truthful concepts, with gusto, no holds barred, and to ram the facts down their throats — both sides of the manure pit called US Politics-Law Making-Legislative Governing.

Every single hour, now, I receive emails and texts from friends who are becoming more and more fatigued — as in Stockholm syndrome or abusive-battered spouse syndrome —  with not just the deplorable stories and vapidity of the press reporting (stenographing) on the people running the country, running the corporations, or those in the throw-a-trillion-dollars-at-their-talentless celebrity culture, or those rally goers with their chronic illnesses and vicious Christian ideology of hate thy neighbor, BUT absolutely drained with the entire project that they believe was a possibly decent American way of life in some mythical golden period of prosperity (for the rich, the white), as in post-WWII? That magical time when all things were in place —  all the bells and whistles, all the “Kum ba yah” (African spiritual song of slaves, meaning, come by here), and two cars in every driveway and smart, adorable, handsome/beautiful offspring with prominent college degrees and a trajectory that might be the envy of a Chelsea or Ivanka.

Truly, the amount of information that floods our corpuscles and demands dendrites and synapses to fire simultaneously while also filtering out the reality that this country has ALWAYS been warped and bad hombre-like puts most average people into a tailspin: spiritual, guilt-laden, fearful, hypocritical and circling the wagons kind of multivariate predicament.

Not acknowledging the U.S. as a white supremacist settler-state translates into a fundamental error.

I am sorry, but there are more white nationalists in the U.S. than folks want to admit. Not acknowledging the U.S. as a white supremacist settler-state translates into a fundamental error. AOC along with other liberals and most of the Eurocentric left are not calling for a break in the history of the U.S. state. They are not calling for authentic de-colonization. By not doing so, they are embracing the perspective of the invader.

Really, what is this “America” that the squad loves and claim to be a part of? AOC’s family is from the colony of Puerto Rico. Tlaib’s America is probably the most Islamophobic country on the planet. Omar’s native land of Somalia became one of the first of the so-called “failed states,” those states where U.S. and Western imperialism plunders and then pretends that the state failed as a result of its internal weaknesses. Pressley, as an African American, is part of a captive population subjected to 243 years of enslavement, 100 years of post-slavery apartheid, and 54 years of benign neglect.

These are the practices and policies of a state and society committed to upholding white colonial/capitalist power. The squad must understand that if one’s people are part of the working class and nationally oppressed, you don’t beg to become part of that de-humanizing and degrading machine. You don’t call for integration or for the recognition of your rights, which is not going to happen. No! You fight and struggle for your inherent dignity, understanding that human rights are not going to be granted by the oppressor.They have to be won through ferocious struggle.

Ajamu Baraka, national organizer of the Black Alliance for Peace

More people in the USA, according to the “pollsters” like Gallup, say they want to leave than even under Obama or Bush, and their number one choice? Again, so American of them, so elitist and exceptionally ignorant of them, but it makes sense these Yankee Doodle Dandy defectors hands down see the white land to the north, Canada, somehow is in their sights as the number one choice from where to skedaddle. As if Oh Canada is this gilded, vaunted place of harmony, endless socialized this and that, and non-bigoted, pro-woman, highly respectful people! Just read the pages of Dissident Voice by putting “Canada” into the search box and you will get a virtual house of horrors/whores list of the not-so-good, bad and ugly of that land of my mother’s birth!

But, truly, so many friends have known the CIA-WTO-Skulls&Bones-MilitaryIndustrialComplex-Fortune500 fix has been in for decades; some, however, go back to this “union’s” roots and realize that the foundation of this country (forget that there were hundreds of First Nations here) —  invaded by undocumented Puritans, illegal aliens the lot of them: thieves, slave- traders, rum-runners, suckah-born-every-minute — is/was/continues to be based on land theft, raping women, enslaving women, children, men, robbing granny blind, flimflamming, scamming and bilking, polluting, lying, marketing, stealing the public coffers.

Even with this knowledge — sort of like knowing a vote for the Democrats is the same as a vote for the Republicans — one is not so steeled from succumbing to a type of despair and fatigue and paralysis even if you knew the jig was up two centuries ago. The younger ones are skeptical and so jaded — cynical — they have little push toward any sort of reckoning for the kings of this rape-thy-neighbor culture. They put noses down and push through this rotting capitalist culture, hoping that something really bad happens collectively, regionally and nationally (heat waves, tornado’s, hurricanes, earthquakes, plagues, tsunamis, volcanic eruptions, viral outbreaks, war, invasions) to wipe the slate clean, so to speak. Cynics, man, cynics. Then, the older people are shaking fists at Trump, forgetting to mind their P’s and Q’s, forgetting recent and old history. Trump is Obama is Bush is Clinton is Reagan is Carter is Ford is Nixon is Kennedy . . . . and so on. Trump a racist? Open racist, for sure, in the same bad hombre company —  Jackson, Fillmore, Buchanan, A. Johnson, Wilson, Nixon. We have to really watch those politicians and presidents who are never openly racist or misogynistic — like Willy Clinton and Joey Biden!

Oh those good old days in the 20th Century:

Overthrowing other people’s governments: The Master List by William Blum

Instances of the United States overthrowing, or attempting to overthrow, a foreign government since the Second World War. (* indicates successful ouster of a government)

China 1949 to early 1960s
Albania 1949-53
East Germany 1950s
Iran 1953 *
Guatemala 1954 *
Costa Rica mid-1950s
Syria 1956-7
Egypt 1957
Indonesia 1957-8
British Guiana 1953-64 *
Iraq 1963 *
North Vietnam 1945-73
Cambodia 1955-70 *
Laos 1958 *, 1959 *, 1960 *
Ecuador 1960-63 *
Congo 1960 *
France 1965
Brazil 1962-64 *
Dominican Republic 1963 *
Cuba 1959 to present
Bolivia 1964 *
Indonesia 1965 *
Ghana 1966 *
Chile 1964-73 *
Greece 1967 *
Costa Rica 1970-71
Bolivia 1971 *
Australia 1973-75 *
Angola 1975, 1980s
Zaire 1975
Portugal 1974-76 *
Jamaica 1976-80 *
Seychelles 1979-81
Chad 1981-82 *
Grenada 1983 *
South Yemen 1982-84
Suriname 1982-84
Fiji 1987 *
Libya 1980s
Nicaragua 1981-90 *
Panama 1989 *
Bulgaria 1990 *
Albania 1991 *
Iraq 1991
Afghanistan 1980s *
Somalia 1993
Yugoslavia 1999-2000 *
Ecuador 2000 *
Afghanistan 2001 *
Venezuela 2002 *
Iraq 2003 *
Haiti 2004 *
Somalia 2007 to present
Honduras 2009 *
Libya 2011 *
Syria 2012
Ukraine 2014 *

Q: Why will there never be a coup d’état in Washington?

A: Because there’s no American embassy there.

So, yeah, these are rough times, but what point in history do we see the good times rolling for the majority of people on planet earth? How were those wars waged from time immemorial? All-volunteer and well-treated armies of the Roman Empire, Alexander’s? How were those cities and pyramids built? Union jobs? How were those lands acquired, plots laid out, cattle drives perpetrated? Who got to “have” Canada or “have” Australia? Whose Hawaii is it?

I know, I know, it’s tough actually living in and fighting within and struggling inside because of everything this society stands for when it comes to all those self-delusions. I know, one out of four Americans say they will never retire . . . just work themselves to the grave or hospital gurney or care facility (streets). I know, there are a million jobs — professions — that are not worthy of the print their descriptions are printed upon, yet we continue to let the chosen few determine the futures of young and old with their a suckah (mark, fool, patsy, money-train, fall-guy/gal) is born every nano-second schemes.

The world burns, the crops desiccate, the water dries up, the diseases are spreading, the neo-natal units are busting at the seams, infrastructure’s collapsing, minimum wage blocked ($7 and change man, in 2019 — yep, we are a failed and failing and falling down nation), housing and rentals costs sky-rocketing, debt increasing, mental duress and illness burgeoning, the few gaining more and more by stealing from the many, more toxins and nuclear particles streaming into our daily lives, and yet, we now no longer can have printed on sewer and stormwater plates — manhole. It’s a they-hole, or them-hole, maybe a shit-hole cover.

See the source image

BERKELEY, Calif. (AP) — Berkeley, California, has adopted an ordinance to replace some terms with gender-neutral words in the city code.

The San Francisco Chronicle reports Wednesday that “she” and “he” will be replaced by “they.” The words “manpower” and “manhole” will become “workforce” and “maintenance hole.”

The City Council on Tuesday unanimously passed the measure to replace more than two dozen commonly used terms. There will be no more “craftsmen” in city code, only “craftspeople” or “artisans.”

Berkeley has a long history of leading on politically and socially liberal issues.

The sponsor of the ordinance is councilman Rigel Robinson, a 23-year-old recent graduate of the University of California, Berkeley. He says his time in college expanded his awareness of gender issues.

Robinson says critics suggested the council spend time on more important matters.

We talk about these prescient and emblematic moments in this essay forum I deploy to stave off my own insanity and the likelihood of going postal. You know, one vote here by the prostitutes of politics, or one headline or story there crafted by the presstitutes, or this or that “scientific” claim/report promulgated by this or that biostute (biologist bought, paid for and wrapped up by The Industry). It is more than just a Mad Mad Mad World, where I’m Not Going to Take It Anymore people running around.

I don’t have to tell you things are bad. Everybody knows things are bad. It’s a depression. Everybody’s out of work or scared of losing their job. The dollar buys a nickel’s worth. Banks are going bust. Shopkeepers keep a gun under the counter. Punks are running wild in the street and there’s nobody anywhere who seems to know what to do, and there’s no end to it. We know the air is unfit to breathe and our food is unfit to eat, and we sit watching our TVs while some local newscaster tells us that today we had fifteen homicides and sixty-three violent crimes, as if that’s the way it’s supposed to be.

We know things are bad – worse than bad. They’re crazy. It’s like everything everywhere is going crazy, so we don’t go out anymore. We sit in the house, and slowly the world we are living in is getting smaller, and all we say is: ‘Please, at least leave us alone in our living rooms. Let me have my toaster and my TV and my steel-belted radials and I won’t say anything. Just leave us alone.’

Well, I’m not gonna leave you alone. I want you to get MAD! I don’t want you to protest. I don’t want you to riot – I don’t want you to write to your congressman, because I wouldn’t know what to tell you to write. I don’t know what to do about the depression and the inflation and the Russians and the crime in the street. All I know is that first you’ve got to get mad. (shouting) You’ve got to say: ‘I’m a human being, god-dammit! My life has value!’

So, I want you to get up now. I want all of you to get up out of your chairs. I want you to get up right now and go to the window. Open it, and stick your head out, and yell: ‘I’m as mad as hell, and I’m not gonna take this anymore!’

I want you to get up right now. Sit up. Go to your windows. Open them and stick your head out and yell – ‘I’m as mad as hell and I’m not gonna take this anymore!’ Things have got to change. But first, you’ve gotta get mad!…You’ve got to say, ‘I’m as mad as hell, and I’m not gonna take this anymore!’ Then we’ll figure out what to do about the depression and the inflation and the oil crisis. But first, get up out of your chairs, open the window, stick your head out, and yell, and say it: ‘I’m as mad as hell, and I’m not gonna take this anymore!’

— Peter Finch in the 1976 movie, Network, playing newscaster, Howard Beale!

I am staving off that Howard Beale moment by putting into perspective everyone’s insanity and my own slippage here. That spillage is my own frustration trying to help guide others who are seeking justice, balance, perspective and answers to “how the hell did we get to this place” and “why have I failed my children and my children’s children’s children’s futures. Indeed, even making a few shekels out here on the coast for a column I pitched (and I got) Deep Dive with Paul Haeder, I get to interview people I want to get to know and learn about; some of them are powerhouses, these individuals who in a lifetime make people who have become so cynical and rotten in their lack of push forward and against the powers that be really pause.

Carol Van Strum, captured here — A real-life Toxic Avenger

Carol Van Strum

Early in her book, A Bitter Fog:

A Bitter Fog

“Where the road skirted the riverbank, overhanging shore and water, they directed their hoses into the water, inadvertently spraying the four children fishing down below. The truck moved on, leaving the children gasping in a wet mist that clung to their skin and clothing. With smarting skin, tearing eyes, burning mouths, throats and noses, they stumbled home. By nightfall, all four were sick.”

Fighting against Dow, against the Forest Service, against the Timber Companies, against the OSU biologists, against the media/Press, against the powers that be, and against ignorance. Monsanto and 2,4,5-D, that fine ingredient as one baseline poison that made  Agent Orange another gift that keeps on giving. She lost four children in a fire in their cabin, and Carol was not afraid to point to the FBI, the thugs of the herbicide companies, or the timber companies. And she keeps going, man.

Vietnamese Girl Writes With Foot

Project 1 C

Spraying Agent Orange Ranch Hand

Vietnamese Before Billboard

Carol Van Strum in my interview: All the legal wranglings have reinforced my chronic intolerance of lies. Ditto the never-ending battle against poisons — that is an industry that could not exist without lying about its products; therefore, it should not exist.

One person can’t save the world, or even see the other side of it. When I was four years old, I set out to see the world — thinking it was a special place like the World’s Fair with carousels and Ferris wheels. After the cops found me asleep in a pile of leaves by the street, my mom asked why I had run away. I told her I didn’t run, I walked, because I wanted to see the world, and she laughed and said, ‘It’s been right here all the time — the world begins at home.’ Lessons you never forget. I can’t save the world but I’ll fight tooth and nail to save this little corner of it.

So, my fine people, friends, aging folk who are going to more and more memorials, or visiting the cancer wards and Alzheimer’s facilities; those people who can’t understand this America, the one We Have Always Had America, I love you for the work you attempt.

I know people like me stir the pot and wack the hornets’ nest. I understand that in a world of spitting, cursing, lying, shooting, imprisoning, raping, stealing, a guy like me opening yet more floodgates on how much we are cooked climate-wise, civil liberties-wise, sanity-wise might be too too much. For that, I hope I do not push anyone over anyone’s edge point. You can do that all on your own, or not!

We can’t go back to some mythical time, but we can put all those polluting, infecting, scratching and biting cats back in the bag, man.  The market knows best, and below, Chomsky’s quote,  just replace “fossil fuel extraction” with any of the following — coal, mining, medical malpractice, banking, computer engineering, chemical making, big pharma, real estate, stock market, artificial intelligence, big ag, big anything, big retail, big guns, big nukes, big energy, big marketing, big ed, big prisons, big fat planned and perceived obsolescence manufacturing-marketing-retailing-delivering (think Amazon).

The logic of the capitalist market rules — what Joseph Stiglitz 25 years ago called the “religion” that markets know best. The same reasoning extends beyond, for example to the major banks that are pouring funds into fossil fuel extraction, including the most dangerous, like Canadian tar sands, surely in full awareness of the consequences.

CEOs face a choice: They can seek to maximize profit and market share, and (consciously) labor to undermine the prospects for life on earth; or they can refuse to do so, and be removed and replaced by someone who will. The problems are not just individual; they are institutional, hence much deeper and harder to overcome.

There is no need to review record of interventions, subversion and violence, particularly since World War II, which established the U.S. in a position of global dominance with no historical precedent. The record includes the worst crime of the postwar period, the assault on Indochina, and the worst crime of this millennium, the invasion of Iraq.

Like most terms of political discourse, “imperialism” is a contested notion. Whatever term we want to use, the U.S. is alone in having hundreds of military bases and troops operating over much of the world. It is also unique in its willingness and ability to impose brutal sanctions designed to punish the people of states designated as enemies. And its market power and dominance of the international financial system provide these sanctions with extraterritorial reach, compelling even powerful states to join in, however unwillingly.

Noam Chomsky: “Worship of Markets” Is Threatening Human Civilization

U.S. 2020 Presidential Election: A Watershed Moment for Humankind and the Planet

The 2020 presidential election in the United States may be the most critical political event in human history. At no time in the history of global civilization have human beings faced existential crises on a global scale. Regional crises of the past 10,000 years reveal that economic regimes have often outstripped local and regional resources, but these crises remained regional in scope. Today, however, the excesses of global capitalism have driven all of humanity to the brink of ecological and civilizational collapse.

Our addiction to fossil fuels has significantly warmed the global atmosphere and accelerated the loss of polar ice caps faster than predicted. Capitalism has fueled industrial activities that have ravaged large portions of the planet, destroying habitats and endangering innumerable animal, plant and insect species worldwide, according to a recent UN report on global biodiversity. Our oceans are contaminated with heavy metals and plastics. Global population pressure, inefficient and wasteful industrial practices combined with climate change have placed enormous pressure on fresh water sources.  Destructive superstorms, wildfires and persistent drought will likely bring profound economic instability and declining food production in coming decades.

Global capitalism has also generated vast disparities in wealth distribution, destabilizing social systems as well as ecosystems. As global and national wealth concentration grows rapidly, the poverty of billions and declining living standards for millions more strain social relations throughout the world. These injustices give rise to disillusionment, desperation, terrorism and mass migration, to epidemics and resistant bacteria and fungi. Armed conflict is endemic in many of the world’s poor regions and wars have brought invasions of poor countries by wealthy countries to stem perceived terrorists’ threats and protect geopolitical interests.

In less than a year and one-half the 2020 U.S. presidential election will occur and the candidate and policies the majority of Americans embrace will help lead the world in one direction or another.  American voters will decide whether the most powerful leader in the world will aggressively tackle the world’s unprecedented and unfolding environmental and social crises or will exacerbate these crises by facilitating unrestrained capitalist exploitation and accumulation. Working Americans are primed for an alternative to global economic system, having recently lost millions of jobs and much of their modest wealth during the Great Recession. Universal healthcare and child care, a higher minimum wage and equal pay, student debt relief, tuition-free higher education, climate change and a green economy as well as a truly progressive tax policy to fund social and environmental initiatives are on the minds of ordinary Americans, if not the majority of them. This is an opportunity for progressive voices across the nation to demonstrate that unregulated capitalism threatens American families and the lives of their children and grandchildren.

Certainly, ingrained capitalist ideology and vested institutions present formidable political obstacles leading to the 2020 presidential elections. Donald Trump and the Republican Party actively resist reform of capitalism, rejecting the Paris Accords and enacting severe cuts in domestic regulations restricting corporate activity and protecting the environment. Conservative strategists are clearly framing the 2020 election to protect the advantages in wealth and political power conservatives have gained in the global economy. Trump’s abject disregard for global warming and the failure of Republicans to address it is a clear threat to the future of the planet. His nuclear war-mongering, with the tacit endorsement of the Republican Party, has flirted with planetary annihilation. For these reasons renowned linguist and ferocious political critic Noam Chomsky has stunningly and aptly dubbed the Republican Party “the most dangerous organization in human history”.

While it will likely take decades and even generations to rein in and reform our global economy enough to achieve some practical level of global sustainability, the magnitude and urgency of the challenges we and the world face make the 2020 U.S. presidential elections an extraordinary watershed moment. This is no time for a program of tepid, incrementalist reforms.  If the Democratic Party fails to embrace an agenda of far-reaching regulation of global capitalism that focuses on climate change and wealth disparity, it risks losing the presidency. Should a moderate Democratic candidate lacking the necessary vision and resolve be elected president in 2020, it may prove to be a kind of hollow victory.

The fundamental questions before American citizens could not be more crucial to the future of our nation and the world: Can we afford to ignore the ravages of climate change and the deleterious impact of our unsustainable production and consumption on the planet’s health? Can we fail to confront the concentration of wealth in fewer hands while poverty, lack of opportunity, ill health and violence driven by these realities rob generations of their potential as human beings? Should we discount, or even underplay, the fact that environmental degradation and wealth disparities on a global scale are exacerbated by inadequately regulated global economic regime?

Why Would China and Huawei Commit Economic Self-Ruin?

Rune Fisker for the Washington Post

It could be construed as a badge of professional honor that a news broadcaster is open to presenting a wide range of views. This might especially be considered so when the corporate-state media is parochially aligned to portraying an unskeptical right-wing, warmongering bizzaro worldview where left-wing (defined as socialist, communist, anarchist… not Democrats or Liberals who frequently bang the drums of war and toe the neoliberal line), pro-peace types are absent or marginalized to the fringes.

A recent segment with RT America anchor Rick Sanchez led me to question again whether Sanchez is doing the news again or opining again? He opens by discussing the friendly, deepening relations between president Vladimir Putin’s Russia and chairman Xi Jinping’s China. He asks:

Here’s the question really, right? Is this a union of strength, convenience, of necessity, of revenge, or somehow all of the above?

Of convenience, of necessity, of revenge? Are these among the best speculations of Sanchez?

Rick Sanchez interviewed John Jordan, a frequent guest on RT America. Sanchez asked Jordan: “Can you, can you, can we, can anybody blame Russia for jumping into China’s … loving arms?” Really, where does a news anchor come up with such questions?

Jordan presented his bona fides. He stated he was an American patriot on air to present the American viewpoint. He said he has “studied Russian history and culture in excruciating detail” and that he speaks Russian. Such a background does, indeed, confer gravitas. But gravitas can be nullified by the bias of patriotism.

Jordan stated “that as a friend of Russia that Russia will rue the day it did this [more closely ally with China through accepting Huawei’s 5G].” Jordan provides as a rationale that the Chinese government, legally, has a right to access all made in China technology. Thus he fears that this will be “an enormous intelligence gathering tool for China.” He adds that this could have “a chilling effect of investment into Russia.”

Jordan points out that other countries need not be dependent on Huawei for 5G and neither on American 5G; there are companies in other countries besides the United States that sell 5G. This is a crucial point since, as revealed by ex-NSA official William Binney, ex-CIA employee Edward Snowden, and by WikiLeaks, the US is deeply involved in intelligence gathering, as are American companies like Google, Microsoft, Apple, and social media such as Facebook.

Time to do news? What is the evidence — beyond mere conjecture — that Huawei would be an intelligence gathering instrument? Have US corporations ever offered a no-spying pact with foreign governments as Huawei has done?

It is too easy to tear apart any thread of rationality to what Jordan says. Jordan professes to be an American patriot. First, it reeks of a double standard to demonize China for what the US, as is well-known by Jordan, also does. Second, why is it even necessary to wave a flag of patriotism? My country right or wrong? Does love of a geo-political entity triumph love of humanity? Love of morality? Love of truth?

And why shouldn’t Russia and China be close partners? That often happens when countries, like Russia and China, are neighbors that share a long border where transportation and communication are easier. First, it makes good economic sense to trade with a neighbor who has goods you want and who also wants your goods. Second, being populous countries, economies of scale also come into advantageous play. Third, the China-Russia union connects both to Europe and Asia. Fourth, both these countries find themselves surrounded by American military bases, navy ships, and weaponry. As such, it also makes clear military sense to create strength through a union.

The overarching question that Sanchez and Jordan do not deal with is why Huawei would shoot itself in its economic foot? 5G technology is poised to be a financial windmill in the near future for Huawei and China, and it seems the US is far behind in this technology. As far as speculation goes, this would be a strong motive for a hyper-American patriot to jump to the defense of US interests by demonizing an economic competitor that is outpacing US economic growth.

The Bankers’ “Power Revolution”: How the Government Got Shackled by Debt

This article is excerpted from my new book Banking on the People: Democratizing Money in the Digital Age, available in paperback June 1.

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The U.S. federal debt has more than doubled since the 2008 financial crisis, shooting up from $9.4 trillion in mid-2008 to over $22 trillion in April 2019. The debt is never paid off. The government just keeps paying the interest on it, and interest rates are rising.

In 2018, the Fed announced plans to raise rates by 2020 to “normal” levels — a fed funds target of 3.375 percent — and to sell about $1.5 trillion in federal securities at the rate of $50 billion monthly, further growing the mountain of federal debt on the market. When the Fed holds government securities, it returns the interest to the government after deducting its costs; but the private buyers of these securities will be pocketing the interest, adding to the taxpayers’ bill.

In fact, it is the interest, not the debt itself, that is the problem with a burgeoning federal debt. The principal just gets rolled over from year to year. But the interest must be paid to private bondholders annually by the taxpayers and constitutes one of the biggest items in the federal budget. Currently the Fed’s plans for “quantitative tightening” are on hold; but assuming it follows through with them, projections are that by 2027 U.S. taxpayers will owe $1 trillion annually just in interest on the federal debt. That is enough to fund President Donald Trump’s trillion-dollar infrastructure plan every year, and it is a direct transfer of wealth from the middle class to the wealthy investors holding most of the bonds.

Where will this money come from? Crippling taxes, wholesale privatization of public assets, and elimination of social services will not be sufficient to cover the bill.

Bondholder Debt Is Unnecessary

The irony is that the United States does not need to carry a debt to bondholders at all. It has been financially sovereign ever since President Franklin D. Roosevelt took the dollar off the gold standard domestically in 1933. This was recognized by Beardsley Ruml, Chairman of the Federal Reserve Bank of New York, in a 1945 presentation before the American Bar Association titled “Taxes for Revenue Are Obsolete.”

“The necessity for government to tax in order to maintain both its independence and its solvency is true for state and local governments,” he said, “but it is not true for a national government.” The government was now at liberty to spend as needed to meet its budget, drawing on credit issued by its own central bank. It could do this until price inflation indicated a weakened purchasing power of the currency.

Then, and only then, would the government need to levy taxes — not to fund the budget but to counteract inflation by contracting the money supply. The principal purpose of taxes, said Ruml, was “the maintenance of a dollar which has stable purchasing power over the years. Sometimes this purpose is stated as ‘the avoidance of inflation.’

The government could be funded without taxes by drawing on credit from its own central bank; and since there was no longer a need for gold to cover the loan, the central bank would not have to borrow. It could just create the money on its books. This insight is a basic tenet of Modern Monetary Theory: the government does not need to borrow or tax, at least until prices are driven up. It can just create the money it needs. The government could create money by issuing it directly; or by borrowing it directly from the central bank, which would create the money on its books; or by taking a perpetual overdraft on the Treasury’s account at the central bank, which would have the same effect.

The “Power Revolution” — Transferring the “Money Power” to the Banks

The Treasury could do that in theory, but some laws would need to be changed. Currently the federal government is not allowed to borrow directly from the Fed and is required to have the money in its account before spending it. After the dollar went off the gold standard in 1933, Congress could have had the Fed just print money and lend it to the government, cutting the banks out. But Wall Street lobbied for an amendment to the Federal Reserve Act, forbidding the Fed to buy bonds directly from the Treasury as it had done in the past.

The Treasury can borrow from itself by transferring money from “intragovernmental accounts” — Social Security and other trust funds that are under the auspices of the Treasury and have a surplus – but these funds do not include the Federal Reserve, which can lend to the government only by buying federal securities from bond dealers. The Fed is considered independent of the government. Its website states, “The Federal Reserve’s holdings of Treasury securities are categorized as ‘held by the public,’ because they are not in government accounts.”

According to Marriner Eccles, chairman of the Federal Reserve from 1934 to 1948, the prohibition against allowing the government to borrow directly from its own central bank was written into the Banking Act of 1935 at the behest of those bond dealers that have an exclusive right to purchase directly from the Fed. A historical review on the website of the New York Federal Reserve quotes Eccles as stating, “I think the real reasons for writing the prohibition into the [Banking Act] … can be traced to certain Government bond dealers who quite naturally had their eyes on business that might be lost to them if direct purchasing were permitted.”

The government was required to sell bonds through Wall Street middlemen, which the Fed could buy only through “open market operations” – purchases on the private bond market. Open market operations are conducted by the Federal Open Market Committee (FOMC), which meets behind closed doors and is dominated by private banker interests. The FOMC has no obligation to buy the government’s debt and generally does so only when it serves the purposes of the Fed and the banks.

Rep. Wright Patman, Chairman of the House Committee on Banking and Currency from 1963 to 1975, called the official sanctioning of the Federal Open Market Committee in the banking laws of 1933 and 1935 “the power revolution” — the transfer of the “money power” to the banks. Patman said, “The ‘open market’ is in reality a tightly closed market.” Only a selected few bond dealers were entitled to bid on the bonds the Treasury made available for auction each week. The practical effect, he said, was to take money from the taxpayer and give it to these dealers.

Feeding Off the Real Economy

That massive Wall Street subsidy was the subject of testimony by Eccles to the House Committee on Banking and Currency on March 3-5, 1947. Patman asked Eccles, “Now, since 1935, in order for the Federal Reserve banks to buy Government bonds, they had to go through a middleman, is that correct?” Eccles replied in the affirmative. Patman then launched into a prophetic warning, stating, “I am opposed to the United States Government, which possesses the sovereign and exclusive privilege of creating money, paying private bankers for the use of its own money. … I insist it is absolutely wrong for this committee to permit this condition to continue and saddle the taxpayers of this Nation with a burden of debt that they will not be able to liquidate in a hundred years or two hundred years.”

The truth of that statement is painfully evident today, when we have a $22 trillion debt that cannot possibly be repaid. The government just keeps rolling it over and paying the interest to banks and bondholders, feeding the “financialized” economy in which money makes money without producing new goods and services. The financialized economy has become a parasite feeding off the real economy, driving producers and workers further and further into debt.

In the 1960s, Patman attempted to have the Fed nationalized. The effort failed, but his committee did succeed in forcing the central bank to return its profits to the Treasury after deducting its costs. The prohibition against direct lending by the central bank to the government, however, remains in force. The money power is still with the FOMC and the banks.

A Model We Can No Longer Afford

Today, the debt-growth model has reached its limits, as even the Bank for International Settlements, the “central bankers’ bank” in Switzerland, acknowledges. In its June 2016 annual report, the BIS said that debt levels were too high, productivity growth was too low, and the room for policy maneuver was too narrow. “The global economy cannot afford to rely any longer on the debt-fueled growth model that has brought it to the current juncture,” the BIS warned.

But the solutions it proposed would continue the austerity policies long imposed on countries that cannot pay their debts. It prescribed “prudential, fiscal and, above all, structural policies” — “structural readjustment.” That means privatizing public assets, slashing services, and raising taxes, choking off the very productivity needed to pay the nations’ debts. That approach has repeatedly been tried and has failed, as witnessed, for example, in the devastated economy of Greece.

Meanwhile, according to Minneapolis Fed president Neel Kashkari, financial regulation since 2008 has reduced the chances of another government bailout only modestly, from 84 percent to 67 percent. That means there is still a 67 percent chance of another major systemwide crisis, and this one could be worse than the last. The biggest banks are bigger, local banks are fewer, and global debt levels are higher. The economy has farther to fall. The regulators’ models are obsolete, aimed at a form of “old-fashioned banking” that has long since been abandoned.

We need a new model, one designed to serve the needs of the public and the economy rather than to maximize shareholder profits at public expense.

An earlier version of this article was published in Truthout.org.

Science Won’t Save the Planet, New Values Will

I don’t write much directly about climate collapse, even though by any measure it is by far the most important issue any of us will face in our lifetimes. And I can gauge from my social media accounts that, when I do write about environmental issues, my followers – most of whom I assume share my progressive positions – are least likely to read those blog posts or promote them.

I have to consider why that is.

As I explained in my last piece, the environment has been a concern to me since my teenage years, back in the early 1980s. It should now be a concern to everyone. And while polls in the UK show that most people are worried to some degree about climate change and the state of the planet, the majority are either still not concerned at all or concerned only a little.

Part of the problem, I start to think, is that we are approaching climate change all wrong. And that addressing it correctly is just too difficult for most of us to contemplate because it demands something profound from us, something we fear we are incapable of giving.

When I share climate change material on social media, it is invariably graphs produced by climate scientists showing the alarming trends of a warming planet. Others, I see, do the same.

But really is that what all this is about? Most of us – at least the ones sharing this stuff – understand that the science is now conclusive. Even, I suspect, those who deny climate change do so not because they believe the data are wrong but because accepting the reality is too overwhelming, too terrifying.

And this gets to the heart of what we need to talk about. Those persuaded by the graphs and the data no longer need those materials, and those unpersuaded aren’t going to heed the science anyway.

So maybe we need to talk less about the science, the graphs and climate change, and much more about ideology, about the inconvertible fact that the planet is dying before our very eyes and about how we have conspired in that act of ecocide. What got us into this mess wasn’t science, what got us here was ideology.

Consumerism our god

In my last blog I noted that scientists kept a low profile when they most needed to speak out, back in the 1990s and 2000s – in part because they were denied a platform, but chiefly because they failed to push themselves forward. That was when the evidence of climate collapse was irrefutable and there was time to start changing our societies to avoid it.

The reason the scientists held back is significant, I think. It wasn’t because they had doubts, it was because the dominant paradigm of our societies – the paradigm shared by almost all of us, the scientists included – was so deeply in conflict with what was needed to bring about change.

For decades – until the financial collapse of 2008 raised the first doubts – we were driven exclusively by a paradigm of endless economic growth, of ever-increasing resource exploitation, of a spiralling personal accumulation of goods. Consumerism was our individual god, and the Stock Market our collective one.

They still are. It’s just that the real, physical world – not the one we constructed out of narrative and ideology – keeps slapping us in the face to try to wake us up from our slumber.

The oceans didn’t fill with plastics last year. Some 1 million species didn’t start facing extinction this month. And the atmosphere wasn’t suddenly polluted with the greenhouse gas CO2 this week. These are trends that have been observable for decades.

The question we have to ask is why did David Attenborough and the BBC suddenly start noticing that everywhere they filmed – from the high seas to the deepest ocean beds – was polluted with plastic? This wasn’t new. It’s that they only recently decided to start telling us about it, that it was important.

Again, scientists haven’t just worked out that there has been a massive loss of biodiversity even in the remotest jungles, that insect populations needed to maintain the health of our planet have been disappearing. The mass die-off of species has been going for decades, even before temperatures started rising significantly. So why have we only just started seeing articles about it in liberal media like the Guardian?

And, fuelled by greenhouse gases, temperatures have been steadily increasing for decades too. But only over the past year have all the record highs, the wildfires and anomalous weather conditions been reported – sometimes – in the context of climate breakdown.

Identifying with the enemy

The cause of these failures is ideology. The reality, the facts simply didn’t stack up with the way we had organised our societies, the way we had come to believe the world, our world, operated. We didn’t see ourselves – still don’t see ourselves – as in nature.

Rather, we have viewed ourselves as outside it, we have seen nature as something to entertain us, as parkland in which we can play or as an exotic place to observe through a screen as a reassuring David Attenborough narrates. Instead of considering ourselves part of nature, we have seen ourselves variously conquering, taming, exploiting, eradicating it.

Derrick Jensen, sometimes described as an eco-philosopher, offers a simple, but telling life lesson. He observes that when you get your food from a convenience store and your water from a tap, your very survival comes to depend on the system that provides you with these essentials of life. You inevitably identify completely with the system that feeds and shelters you, however corrupt, however corrupting that system is. Even if it is destroying the planet.

If you hunt and forage for food, if you collect water from streams, then you identify with the land and its water sources. Their health means everything to you.

We saw those two identification systems playing out as a terrible, tragic theatre of confrontation at the Standing Rock protests through 2016-17, between those trying to stop an oil pipeline that would destroy vital natural resources, risking the pollution of major rivers, and heavily armed police enforcing the system – our system – that puts corporate oil profits above the planet and our survival.

Anyone watching footage of those protests should have understood that the police were not just there to carry out law enforcement. They were not just there on behalf of the state and federal authorities and the corporations. They were there for us. They were there to keep our way of life, our suicidal pattern of living, going to the bitter end. To the point of our extinction.

Like them, we are battle-ready, heavily armed enforcers of an ideology, an insane ideology needed to protect a self-harming, nihilistic system.

A virus killing its host

This is not a question of science. None of those charts and graphs and data are actually necessary to understand that the planet is dying, that we have become a virus gradually killing its host. That is obvious if we look inside ourselves, if we remember that we are not police officers, or civil servants, or arms makers, or oil executives, or tax collectors, or scientists. That the system is not us. That we do not have to identify with it. That we can cure ourselves by learning humility, by rediscovering our inner life, by being in nature, by reconnecting with others, with strangers, by protesting against the system and its values, by listening to those the system wants to denigrate and exclude.

In fact, most of the scientists are very much part of the problem. They, like the media, now tell us how bad things are only because the patient is on life support, because her condition is critical. But those scientists are not ecological doctors. They are not qualified to offer solutions for how to revive the patient, for how to get her back to health. Those scientists who worked their way up through the institutions that awarded their qualifications of expertise are as identified with this suicidal ideological system as the rest of us.

We need more ancient wisdoms, dying wisdoms, of the indigenous peoples who still try to live in nature, to live off the land and in harmony with it, even as we make the conditions to do so impossible for them. We urgently need to find ways to simplify our lives, to ween ourselves off our addictive consumption, to stop identifying with the system that is killing us, and to seek leaders who are ahead of us in that struggle for wisdom.

First buds of resistance

In my last blog post, I called for more populism – not the reactionary kind created by our current leaders to confuse us, to justify more repression, to strengthen their own hand – but a populism that seeks to take power away from those who rule over us in their own, narrow self-interest, to re-educate ourselves that the system is a menace, that we need new social, political and economic structures.

Some readers objected to my call for more Extinction Rebellions, more Greta Thunbergs, more school strikes, more Green New Deals, more climate emergencies. They believe these groups, these strategies are flawed, or even that they are colluding with our corporate rulers, coopted by the system itself.

Let us set aside for a moment the cynicism that assumes all protests to stop us killing the planet are pointless, not what they seem, or intended to derail real change.

Yes, of course, the corporations will seek to disrupt efforts to change the system they created. They will defend it – and their profits – with all their might and to the death. Yes, of course, they will seek to subvert, including from within, all protests of all kinds against that system. We cannot reach an accommodation with these structures of power. We must overthrow them. That is a given. There are no accolades for pointing out these obvious truths.

But protests are all we have. We learn from protest. From their response, their efforts to subvert, we identify more clearly who the real enemies of change are. We grow in wisdom. We find new allies. When we discover that the institutional and structural obstacles are even greater than we imagined, we learn to struggle harder, more wisely, both to change the reality outside ourselves and the reality inside. We find new values, new models, new paradigms through the struggle itself.

Extinction Rebellion and the school strikes aren’t the end of the process, our last shout. They are the very first buds of a rapid evolution in our thinking, in our understanding of where we stand in relation to the planet and the cosmos. These buds may be clipped off. But stronger, more vigorous shoots will surely replace them.

Marx Still Prevents the Progress of Society

If one searches “theory of alienation” in Google, predominately Marx’s theory comes out because other theories of alienation in a political and economic level do not exist. The question is why? What is so incredible in Marx’s statement that workers get alienated from the products of their labour, which alienates them from themselves? It just does not hold much water because everyone who produces for the market gets alienated from the product at the moment of purchase.

Marx strongly contributed to the scientific understanding of capitalism. He stated that capitalists profit from the production, while their workers only receive a fraction of the capitalist’s profit as wages. Capitalists exploit workers by paying them low earnings. Marx was right about this. He believed that exploitation of workers might be eliminated through socialist revolution only. Marx was wrong here because a violent revolution cannot better society. Although a revolution may replace a certain social injustice, it has always been replaced with a new kind. To ensure the lasting effect of revolutions, new leadership are generally autocratic, and therefore spread alienation throughout society with all the unfavourable dictatorial phenomena that are well-known throughout history. Revolutions have never contributed to the improvement of society as it was desired by people. Marx did not have enough data to be able to build his vision of socialism scientifically. As a result, his vision of socialism failed.

Thanks to social scientists, it is still not known what exactly creates exploitation of workers even though the answer is straightforward – unemployment creates exploitation. Unemployed workers are pressured to accept poorly paid jobs to feed their families. When we eliminate unemployment, we will create a fair market for work. The lack of workers will increase their demand on the market so that employers will have to pay them more. This will create a chain reaction in which workers’ salaries will grow, while employers would still make profits. We may say this would eliminate exploitation. There is no formula which would determine what exploitation is, only workers dissatisfied with their earnings may present it. A fair market of work will remove this dissatisfaction.

The rise in workers’ salaries in the fair market can be proved. In the 14th Century, the Black Death killed one-third of the European population which suddenly increased demand for workers. The shortage of workers increased the workers’ wages. At Cuxham (Oxfordshire, England), a plowman demanded from his Lord a payment 3.3 times greater in 1350 than in the previous year (The Economic Impact of the Black Death, Economic History Association). “In Parliament, in 1351 the Commons petitioned Edward III for a more resolute and effective response. They complained that “servants completely disregard the said ordinance in the interests of their ease and greed and that they withhold their services to great men and others unless they have liveries and wages twice or three times as great as [prior to the plague] to the serious damage of the great men and impoverishment of all members of the said commons.””1

According to this, if a political party wins an election offering a reduction of work to 5 hours per day; the lack of workers would increase workers’ salaries 2-3 times per hour in one year. The daily wages would rise 30-90% for just a 5-hour shift. Workers would work shorter hours and earn more. It has already happened, and it is much easier to accomplish than raising a revolution.

So who is going to pay for such an increase in salary? The wealthy employers, of course! Right now they collect this money as profit for themselves. Can employers refuse to increase worker salaries? They can, but then their workers would find a new employer who would pay more, and that means they will lose the possibility to maintain their businesses. When workers earn more they will purchase more which will, in turn, increase the employers’ profits. So, why have we not created a good economy so far? Because the more workers earn, the less they depend on the rich. The rich keep their power in society by maintaining the fear of unemployment. More about it is presented in my article: Let’s remove unemployment.

*****

Marx thought that the market economy caused the exploitation of workers, so he proposed the elimination of the market economy by a centrally planned economy. Marx knew that the elimination of market economy removes the indicators of economic efficiency so he called upon for worker conscience to replace it. It revealed a consistency problem of Marx’s philosophy. Human conscience belongs to idealism and it was never able to improve society because it was never accepted on the social level. The planned economy was supposed to produce goods and services in quality and quantity to satisfy people’s needs. But the leaders have never learned how to gather people’s needs, so they decided it for them. Such economy alienates itself from the people. The socialist economy also deteriorates because revolutions replace experienced entrepreneurs with inexperienced theorists. The socialist ideology overprotects workers while also taking their freedom which does not stimulate them to work enough. The planned economy is not able to make the balance between production and consumption leaving people unsatisfied. As a result, the Marxist’s economy failed to satisfy people’s needs sufficiently.

The planned economy was tried in the USSR and China. It has significantly reduced material exploitation of workers which exists in capitalist countries but also, it decreased the efficiency of the economy. The economy in the USSR and China had much lower productivity than capitalist economies. The USSR collapsed due to the inefficiency of the planned economy. Thus, Marxism failed. China has learned on their own mistakes, abandoned the planned economy in 1980, and accepted the regulated market economy. From that moment it has become the fastest growing economy in the world, threatening to take the number one place soon. This explains everything about the Marxist economy.

Taking into account the failures of Marxism, why does it deserve such a significant presence in science, media, and in hearts of Marxists? It would not be possible without the approval of the owners of corporations. Without it, Marxists would not be able to participate in political elections. Neither would they be able to teach Marxism at universities and get media support. Why do the rich help the Marxist ideology which promotes violent confiscation of their property? The rich simply knew Marxism could not be a threat to capitalism. Otherwise, it would be banned. They knew that Marxism is on the wrong track and support it because Marxism prevents the progress of society. If Marx proposed reducing work hours instead of revolution, his philosophy would not be supported, and hardly anybody would know he has ever existed.

This is how the conspiracy of the rich works. By supporting Marx, the rich have successfully prevented a better society for 100 years. Now capitalists know they cannot cheat people by supporting revolutions and planned economy anymore, but they do not abandon Marxism because a large number of people are romantically and emotionally still connected to Marx. Most Marxists accepted Marx’s ideology when they were young. Youthful rebellion based on dissatisfaction and injustice in society made them easy prey for the manipulation of the rich. The rich hid the cause of the exploitation and promoted Marx’s philosophy as the escape from the problem. Marx made revolution scientifically acceptable, and people acknowledged it through the study of his excessive work.

Marxists recognize the failures of Marxism, but they still believe they need to find the right method to implement Marx’s philosophy correctly. By accepting Marxism they cannot change their opinion significantly anymore, especially not if a simple idea like shorter work hours tries to break it. The rich are masters of deception and Marxists cannot admit they have been deceived. Helped by the rich, Marxists got a strong influence in the political Left and by promoting the ideology which does not work, they help the rich. They are also helping the rich by preventing new left ideas from coming.

*****

This is precisely what has happened to me. I have presented how to create a good society in the book Humanism – A Philosophic-Ethical-Political-Economic Study of the Development of the Society. It is available free of charge online. The book is based on an original theory of alienation. It states that subjectivity alienates us from objective reality. Subjectivity puts us on the wrong path so that we cannot satisfy our needs. The escape from all problems of humankind lies in the building of objective vision of reality. Democratic acceptance of equal human rights will do it. The implementation of equal human rights will solve all social problems. Nothing else we need for building a good social life and nothing else can make it.

Marx was right when he called upon for equal human rights among people, but he did not see the scope of its development. The ultimate stage of equal human rights will create an equal possibility for the employment of every worker at every public work post at any time. It will be necessary to open a permanent competition of workers for every public work post. The best worker would get the right to work at any time. I know it sounds impossible because such a division of labour never existed. But the realization of it is just a technical problem. The system I have developed will effectively evaluate the productivity of work offers, define the job responsibilities of workers, and harmonize rewards for work. In short, the workers who offer the highest productivity and responsibility, and demand the lowest salary will get the job. No economy can be more productive than the one where each job gets the best available worker. Public companies will become more productive than private ones so that the latter will go down in history. Only this should be called socialism. I wrote more about it in the article: The Failures of Marxism and the Right Path to Socialism and Communism.

The market is the best choice for the economy. The market of goods allocates every good to the most capable purchaser who needs and loves it the most. The producers profit from it the most as well. The further development of the market will improve the economy much more. The market of work will eliminate work privileges which will make each job equally demanded. Such a market will allocate every job to the most productive worker who needs and loves it the most. Shorter work hours will eliminate unemployment while less desirable jobs will be compensated with higher incomes. The market will help society to reach the best life possible. I have presented the bright future of humankind also through stories in three screenplays: Good Capitalism, Good Socialism, and Good Communism.

Even if my ideas are wrong, which they are not, my effort deserves to be noticed, but I have experienced a total refusal by media, science, politics, and film industry. The people who hear me offering increasing salaries for shorter work time, which is the first step in developing the economy and society, think it is too good to be true no matter what arguments I give. Public discussion may help, but it is prevented. One of the reasons for that is Marxists do not like my work.

However, the rich cannot hide the truth forever. It will break through one day. Then people will accept the benefits of full employment and request shorter work hours. The rich will resist it, of course, but they cannot win against united people. This will be the hardest part of creating a perfect society.

  1. Michael Bennett, The Impact of the Black Death on English Legal History, Australian Journal of Law and Society, 1995, Page 197.

Water, Water, Water: War Against Humanity

Capitalism is broken. It is like a gun pointed at the heart of the planet. And it’s got these characteristics which mean that it will essentially, necessarily destroy our life support systems. Among those characteristics are the drive for perpetual economic growth on a finite planet. You just can’t support that ecologically. Things fall apart. It also says, well, anyone has got a right to buy as much natural wealth as their money allows, which means that people are just grabbing far more natural wealth than either the population as a whole or the planet itself can support.

— George Monbiot

Below a short piece I wrote for the Newport (OR) News Times. Sort of like shadow boxing, writing traditional news pieces to at least prop up some of the deep deep issues tied to broken Capitalism.

Note that capitalism would never be allowed in the article, let alone the reality of how broken capitalism is. Imagine, the pigs in politics, the war mongers, the Venezuela wannabe killers, all those elites running their mouths and groins in their spasms of narcissism.

Imagine how many communities in the USA are failing, near failing, about to fail, because the billionaires and the war mongers and the Industrial Complex of felons — pharma, ed, legal, finance, IT, AI, insurance, banking, energy, chemicals, prisons, ag — are hell bent on abandoning any humanity in their insanity and their sick elitism and their bizarre anti-people and community logic.

Thousands of dams about to fail in the USA. Water systems that shoot out lead and a thousand other chemicals that kill brains and DNA. Imagine the conservative society of civil engineers giving the USA a D- for infrastructure. Imagine the failing education system. Imagine the mass murdering media following all the dog nose in rear end stories.

This story, of course, is about $70 million a city is supposed to get for a failing duo of earthen dams. Newport on the Cascadia Subduction Zone, where an earthquake will set off many other earthquakes and tsunamis.

The whole lovely Oregon Coastline will turn into a McCormac “The Road” dystopia.

The UN recently sounded the alarm that urgent action is needed if Arab states are to avoid a water emergency. Water scarcity and desertification are afflicting the Middle East and North Africa more than any other region on Earth, hence the need for countries there to improve water management. However, the per capita share of fresh water availability there is already just 10 percent of the global average, with agriculture consuming 85 percent of it.

Another recent study has linked shrinking Arctic sea ice to less rain in Central America, adding to the water woes in that region as well.

There you have it — the stupidity of this country flailing about the world with empire on steroid and smart phones, and every community in the USA is facing sea ice inundation problems because those communities near the oceans have a heck of a lot of influence on the rest of the middle of America. Money money money — and the spigots go right to the pockets of the Fortune 1000 and the Aspen Institute fellows and the Davos crowd.

So, on a community level, Newport faces big issues because the dams will fail and the cascading disasters of no water for months will cause disease and depopulation.

Ironies beyond ironies. We will NOT stop pumping emissions into the air. Read Jamail’s piece above, “The Last Time There Was This Much CO2, Trees Grew at the South Pole.”  Science. Reality.

The schizophrenia of the rich and deplorables backing trump or pelosi or biden or any of the two manure pile candidates yet every community faces kissing bugs invading, housing crisis after rental crisis, wage theft, huge thefts of human futures. Billions of people on earth stolen. So the rich and the sick people on FOX and CNN get off on the chaos they set forth.

From River to TapNewport’s Water System is an Engineering Miracle Delivering a Fragile, Vulnerable Resource to us All

Newport’s state of the art water treatment plant along Big Creek impressed the mayor and some of the council-members as we toured the facility after a presentation on the very real future water crisis that could befall not just Newport, but all the towns serviced by the water facility.

The message was clear from Newport’s Public Works Director: a new dam has to be built for the public’s health, safety and economic welfare. The public works director emphasized that 10,000 residents of Newport use water, but also another 40,000 additional temporary residents also suck up the water during tourist season. Add to that 50,000 number the huge seasonal water demands of the fishing industry and year-round clean water needs of the Rogue Nation brewery.

“In the event of an earthquake, the dams most likely could fail,” Tim Gross said. “We are looking at two to six months after a major Cascadia event (fault line earthquake) to rebuild a dam and replace the infrastructure that supplies water.”

He likened a dam failure here to what happened after Hurricane Katrina – people left the city, and millions upon millions of dollars in GDP were lost. “If the dams fail, it would be hard for this community to recover.”

There are projected population growths of 30 percent or more for Newport by 2030, and a new brewery in the works, so in reality, water demand will possibly double. Much of what Gross presented to the 20 or so people attending April 29th’s Town Hall at the Water Plant was pretty “technical” in a geo-engineering way, but the overarching message was clear.

Each year delayed on construction adds a few million dollars more added in inflationary costs. “I’ve been working on this for eight years,” he said. “This is not a sprint, it’s a marathon.”

Council-member David Allen emphasized that Senate Bill 894, sponsored by Sen. Roblan and Rep. Gomberg, was just referred to the Ways and Means Committee. It’s a $44 million general fund grant to be put forward for this project.

The reality is four years of geotechnical work already invested to study the two dams’ subsurface conditions point to the same thing – “the soils under both dams fail in a 3.5 earthquake.” This is spongy soil holding back millions of gallons of water;  that is, it’s “silty sand, clayey silt, and silty clay alluvium overlying Nye Mudstone.”

The failure probability for these two dams giving out 60-feet down and then causing overspills is high in a rather low intensity 3.5 (on the Richter scale) quake.

We all know about the Cascadia Subduction Zone, and the hundreds of faults that spiderweb throughout the coast, from sub-sea land masses to the coastal and beyond terrestrial areas. Our communities have various disaster preparedness plans tied to earthquakes and resulting tsunamis.

No amount of food and water will suffice, however, if the toilets can’t be flushed and water won’t be piped into sinks for months on end. It’s the resulting disasters that truly affect a community after the initial impact of a natural calamity such as a quake and tsunami.

Ironically, Gross stated that a three-day study workshop in October 2018 “was a career highlight for me . . . working with these people . . . the smartest people I have ever met.”  The experts looked at studies, projections and cost estimates for a new dam coming in at $70 million. For Gross (and others), there are basic questions surrounding a $70 million project to build an RCC (roller compacted concrete) dam between both the existing earth dams on Big Creek:

  1. What will work?
  2. How much will it cost to maintain?
  3. Will it be resilient?

We’re talking about two earthen dams built in 1951 and 1955 and dozens of geophysical tests on site and in the laboratory, with some pretty high-power members of the international community who study dams, seismic events on infrastructure, and others who have dam remediation and building in their portfolios.

Other options like rebuilding or rehabilitating the two dams or constructing a desalinization plant or even building a new dam miles away at Rocky Creek are off the table. The only thing really in play is Alternative Six: No Action, which is still an option the City has to weigh against the possible risk of losing the only drinking water source for Newport in case of a seismic event.

Ironically, a new embankment dam (not a great choice) would require 10,000 truck trips to bring in materials; 30,000 truck trips for a new earthen dam, all of which would ruin a community the size of Newport. This RCC dam proposal, however, requires less construction materials and would be utilizing some old logging roads. The project is outlined in many phases, including building a road around Big Creek, building a water pipeline to allow for water to be continuously supplied to users during construction, then building the dam, and doing stream restoration.

In the end, the plant manager, Steve Stewart, who has worked for the Public Works Department 30 years, makes a plain selling point – “I love my job because I like providing a clean product to the community. I drink it out of the tap every day and am proud of what we do here.”

Gross emphasized that many Oregon communities are facing similar challenges with aging dams needing replacing. The biggest and least expensive push for Gross is getting the community behind conservation, and, more importantly, gaining an appreciation that water is always available and can’t be taken for granted.  Newport is part of the Mid-Coast Water Planning Partnership which is a group of 70 entities and stakeholders representing diverse water interests in the region from Cascade Head to Cape Perpetua. The group’s goal is to not only understand water resources and create an integrated plan, but to carry forth on better water management in the region over the next 50 years.

So, yes, milquetoast in some ways, the piece above, but how else can this stuff get through . . . and this is the reality of mainstream America and even small town news — never ever question the business community, the timber industry, the fish industry, even the oh-so hip beer and ale community. You see, we have to work on bio-regionalism and stopping the unchecked growth in communities that can’t weather the current storm of neoliberalism and assault capitalism, let alone the future implosions of climate change and in our case, earthquakes!

Worse yet, though, and no matter how much George Monbiot or Dahr Jamail or Bill McKibbeon or any one that is part of the Extinction Rebellion or even ecosocialists like myself to realize it’s game over. Simple stuff, stopping more liquefied natural gas trains, pipelines, ports and ships crossing the seas to move that fossil fuel to the engines of consumption.

Coos Bay, Oregon, and this project, Jordan Cove LNG, is emblematic of the broken systems of capitalism and the broke pipes of compliant democracy. Here:

Headline — “Coos Bay Braces for Jordan Cove Impacts.” Imagine that, we are still attempting to stop those mafia style energy companies, trying to get our own state to stop this project, but it’s all theater, and the provokers purveyors of this sickness — multiple corporations, transnational banking, etc. — don’t give a shit about the environmental and economic breakdown of all these ships criss-crossing. We are addicted to fossil fuel and oil, to the point as a species we will give up water and food — pink shrimp, Dungeness crab, halibut and salmon, for the turn of a shekel:

The Federal Energy Regulatory Commission is expected to issue a final decision on the Jordan Cove LNG terminal and pipeline project early next year.

The Coos Bay Channel widening project is not as far along in the regulatory process. Earlier this month, the port hit the “90% design” milestone in completing their permit application. An Army Corps of Engineers spokesman said they don’t expect to have the Draft Environmental Impact Statement completed until March 2020.

Port CEO John Burns says the channel-widening project is the next big step for the port, which hopes to attract larger vessels and more shipping traffic overall.

“We look at the global Maritime Fleet, the size of ships. If we were going to be an international player we’ve got to be able to at least bring in ships of that size,” Burns said. “Otherwise, we will not be competitive with other ports on the West Coast.”

The project would significantly widen and deepen a little more than 8 miles of the Coos Bay shipping channel. Currently the channel is 350 feet wide and 37 feet deep. The new plan would widen the channel to 450 feet and 45 feet deep. The spoils would be dumped at a site offshore.

Regardless, the physical characteristics of Coos Bay would change significantly if the projects go through. The port’s proposed channel widening project would remove enough earth to fill a football field-sized skyscraper the height of Mount Bachelor. Add the fill Jordan Cove needs to remove for its project, and that shaft of earth rises higher than Mount Hood.

Federal environmental reports for Jordan Cove and a previous Coos Bay dredging project characterize the ecological, water quality and hydrologic impacts as temporary and within reasonable limits.

Thus, we are cooked, because we have trained PR spinners and bloodless engineers and financial creeps and legal felons in our elite schools and other schools to live in a world with no ethics other than getting the most our of earth as quickly as possible. They end up as government shills and they end up as these pigs running Jordan Cove.

Project after project like this is unfolding now and for the future. Not just the USA, but Russia and China and Europe and Canada and Australia and Japan. It’s not about retrenchment, but energy for more fabrication of a false humanity, for more pies in the sky — hell ships to Mars, the Moon, to asteroids, while a majority on earth can’t even collect clean water daily. Imagine that, we have allowed the schools, colleges, media, military, government, punishment sectors of our so-called advanced Western world, and those in the Far East, to sink ecosystems, which in turn, sinks communities Big Time.

Polluted minds with hubris dripping out of their veins and orifices is what the new normal is for so-called CEOs, public servants (disservants) and public “intellectuals” like Gates (sic).

Citizens against LNG or Jordan Cove are small in numbers because of the deplorable thinking processes people have garnered from deplorable media and deplorable parenting and deplorable jobs and deplorable politicians and deplorable Americanism — hence, there are a shit-load of deplorables out there ready to sacrifice food and water for a job!

Hundreds protest Veresens Jordan Cove LNG Open House Events

You won’t see Naomi Klein or the stars of the New Green Deal tackle the very real battles going on now in community after community, which is how capitalism has always worked — divide and conquer, propaganda on steroids, military and police strong arming, legal entrenchment, political pimping and prostituting: by the corporations the polluters, the murderers.

Schizophrenia — Democracy Now

On Wednesday, the House of Commons became the first parliament in the world to declare a climate emergency. This is Labour Party Leader Jeremy Corbyn.

“We have no time to waste. We are living in a climate crisis that will spiral dangerously out of control unless we take rapid and dramatic action now. This is no longer about a distant future. We’re talking about nothing less than the irreversible destruction of the environment within our lifetimes of members of this house.”

It is highly significant, because it provides leverage for people like myself, for people like Extinction Rebellion, the youth climate strikers, to actually say, “Well, now you MPs, you members of Parliament, have declared a climate emergency; you have to act on it.” And, of course, it’s not clear that they’ve completely thought through the implications of this. I mean, on the same day, yesterday, that this climate emergency was declared, there was a legal ruling saying a third runway at Heathrow Airport can go ahead. Well, look, this is an emergency. And that means we need to start retiring fossil fuel-based infrastructure rather than building more of it.

The major banks, the oil companies, the politicians in the pockets of banks and oil companies, the military industrial-services-delivery-marketing complex, the Trumps and the Bidens, the entire mess that is American bullshit bifurcation of brain cells —  I will fight for the good of my rich kids and family to be free of pollution, to be well cared for, well educated (sic), blessed (sic) with opportunities to make money and live in safe neighborhoods and see the world and dodge taxes . . .  but the pain, suffering, slavery, pollution, despair, displacement, well, that’s all good for my corporation’s marks:  those  tired, your poor,  huddled masses yearning to breathe free, the wretched refuse of your teeming shore, the homeless, tempest-tost.

The New Colossus by Emma Lazarus

Not like the brazen giant of Greek fame,
With conquering limbs astride from land to land;
Here at our sea-washed, sunset gates shall stand
A mighty woman with a torch, whose flame
Is the imprisoned lightning, and her name
Mother of Exiles. From her beacon-hand
Glows world-wide welcome; her mild eyes command
The air-bridged harbor that twin cities frame.
“Keep, ancient lands, your storied pomp!” cries she
With silent lips. “Give me your tired, your poor,
Your huddled masses yearning to breathe free,
The wretched refuse of your teeming shore.
Send these, the homeless, tempest-tost to me,
I lift my lamp beside the golden door!”

immigrants seeing the Statue of Liberty in New York Harbor from Frank Leslie's Illustrated Newspaper

BRI Forum in Shanghai and how Western “Reports” are Smearing China

The second Belt and Road Forum for International Cooperation is about to open in Beijing. It will take place from 25th to 27th April, 2019. The Chinese President Xi Jinping is expected to deliver the keynote address.

It is expected to be an event of tremendous proportions and importance: leaders from 37 countries will participate, including Russia’s President Vladimir Putin and President Duterte of the Philippines. Beijing will host 5,000 guests from 150 countries, as well as 90 international organizations.

Africa – BRI: New China built highway

The Belt and Road Initiative (BRI) has already been reshaping the world, fundamentally. Previously at the mercy of the Western imperialist powers, their armies, propaganda apparatuses and brutal financial institutions; Africa, the Middle East, Central and Southeast Asia have suddenly discovered that they have alternatives and choices. For various parts of the world, decades and centuries of stagnation and humiliation under colonialist and post-colonialist regimes have begun to come to an end. Entire nations have been freeing themselves, realizing their great hidden potential.

All this because of BRI; because of China as well as its close ally, Russia.

Entire huge railroad projects in East Africa as well as in the once devastated Laos (devastated by the insanely brutal Western carpet-bombing campaigns, which are still called a “Secret War”) are now connecting continents. Along the railway lines, schools are growing, and so are medical facilities, community learning centers and cultural institutions.

BRI Project:  China building high speed train

The BRI is not only about the economy, not only about infrastructure and development, it is also about the well-being of the people, about the culture, health and knowledge. It is aiming at connecting people of different races, life philosophies, and beliefs.

And the rulers in the West are horrified. Nothing outrages them more than the prospect of losing absolute control over the world. For them, it is not (and never was) about improving the lives of hundreds of millions of impoverished people. They had centuries of absolute power over the planet, and all they did was to enrich themselves, murdering and robbing in all corners of the globe. For them, it is about ‘winning or losing’, about maintaining its colonies and ‘client’ states; by all means, even by the most brutal ones.

For China, (through BRI), it is all about spreading wealth everywhere. The firm belief in Beijing was and is: If the world is doing well, China will prosper, too.

*****

And so, in Washington and London, and in so many other centers of Western might, thousands of ‘professionals’ are now employed and busy smearing China and its most ambitious international (and internationalist) projects. Smearing and spreading nihilism is an extremely well-paid job, and for as long as China is rising and the West declining, it appears to be a permanent one. There will be no deficit when it comes to funding all those anti-Chinese ‘academic reports’, fake analyses and articles. The more of them, the better; the more ridiculous they get, the better remunerated they are.

Take this one, for instance: “Grading China’s Belt and Road”.

With all those footnotes and ‘references’, it looks professional and academic. It can impress millions of China-phobes and China-bashers in Europe and North America. Suffering from complexes of superiority and “Yellow-Peril mentality”, they are searching for, and then welcoming all vicious attacks against Beijing and its initiatives.

Look closer, and it is ‘reports’ like this that are clearly nothing more than thinly disguised propaganda work ordered by those who are aiming at discrediting China and its internationalist efforts.

In its Executive Summary, the report states:

Since its launch in 2013, what China calls “One Belt, One Road” has emerged as the corner- stone of Beijing’s economic statecraft. Under the umbrella of the Belt and Road, Beijing seeks to promote a more connected world brought together by a web of Chinese-funded physical and digital infrastructure. The infrastructure needs in Asia and beyond are significant, but the Belt and Road is more than just an economic initiative; it is a central tool for advancing China’s geo-political ambitions. Through the economic activities bundled under the Belt and Road, Beijing is pursuing a vision of the 21st century defined by great power spheres of influence, state-directed economic interactions, and creeping authoritarianism.1

As Beijing prepares to host the second Belt and Road Forum in late April 2019, countries that once welcomed Chinese investment have become increasingly vocal about the downsides. This report is intended to serve as a resource for governments, corporations, journalists, and civil society groups now re-evaluating the costs and benefits of Belt and Road projects…

In brief, it is propaganda; anti-Chinese propaganda, anti-Communist (or call it ‘anti-central-planning- propaganda).

It is also a tool for all those who are ready to criticize China, defining its marvelous efforts as a ‘debt trap’, among various other derogatory terms.

A leading academic at the University of the Philippines (U.P.), Roland G. Simbulan, agreed to analyze the origin of the CNAS report for this essay:

The April 2019 Report “Grading China’s Belt and Road” by the Center for a New American Security (CNAS) seems to be one of the latest findings and studies of American conservative think tanks which are in fact aimed at discrediting China’s economic thrusts through China-financed infrastructure, land and sea transport, investments, etc. These are China’s answer to the U.S.’ global military build-up and encirclement of its fast rising rival superpower. China is trying to avoid the mistakes of the Western powers including the U.S. and the former USSR by not engaging in a tit for tat arms race. Instead, it is answering back with its Belt Road Initiative as well as other economic and market initiatives aimed at reinforcing China’s strengths while avoiding a direct attack on where the U.S. is strongest and has more advantage: the U.S. global military forces.

It is obvious from the backgrounds of the CNAS fellows who are authors of the report that they are all connected with the U.S. Department of Defense, the U.S. Department of State and the U.S. National Security Council. The American Enterprise Institute is a quasi-U.S. federal government think tank composed of recycled officials of the U.S. Department of Defense and U.S. Department of State. It is also obvious that they have consolidated the economic and political reports of all the U.S. intelligence community which are coordinated by the U.S. National Security Adviser.

And obviously, CNAS is not hiding where it stands, ideologically. It quotes such right-wing warriors as the French President, Emmanuel Macron, the International Monetary Fund Managing Director Christine Lagarde, the Minister of Energy in the defunct and discredited Ecuadorian government, Carlos Perez, and other unsavory figures.

Roland G. Simbulan continues:

While the CNAS Report may indeed have identified some of China’s vulnerabilities in the management of its China-funded projects which can easily merit criticism, i.e., sovereignty eroding, non-transparent, unsustainable financial burdens, locally disengaged, geopolitically risky, environmentally unsustainable, and corruption-prone), let us remember that China’s BRI was only launched in 2013. The U.S. and its Western Allies, including the multilateral institutions that they have created to assure U.S. neoliberal control of national economies since 1945 have engaged in practicing these “challenges” and dangers that it accuses China of initiating through BRI projects “for China’s geopolitical ambitions.

These may be valid as in the case of the 10 case studies identified by the CNAS Report. But it is too soon to make conclusions in such a short time from 2013-2018. For these are also practices that have long been inflicted by the U.S. Empire and its allies since the end of World War 2 to assure economic, political and military hegemony. Unintentionally, the seven (7) challenges or dangers of China’s BRI identified by the CNAS are really challenges that are continually being inflicted by the U.S. Empire and its Western allies on weaker and smaller countries. Precisely, many countries in Asia, Africa and Latin America are turning towards alternative international institutions such as ALBA in Latin America and BRI BECAUSE of the onslaught that they have long experienced with the PAX AMERICANA i.e. the U.S. and its allies.

Can the CNAS show that their sponsors and patrons are doing better, or can do better? The best way for the U.S. to counter the Belt Road Initiative (BRI) is to show AND prove that they can offer a better deal with developing countries in need of assistance for their infrastructure and development projects.”

*****

Mr. Sidqy LP Suyitno, an Indonesian high government official and former State Finance and Monetary Analysis Director of the Ministry of National Development Planning, is also puzzled by some of the wording in the report. When asked about the BRI project to build the bullet train from the Indonesian capital Jakarta to its city of Bandung, he contradicted the report:

Geopolitically Risky? It seems NOT to be. It seems more like making bilateral relations with Japan uncomfortable. The Japanese have been enjoying the benefits when it comes to relations with Indonesia, ever since Suharto’s dictatorship: the automotive industry is more like an oligopoly for Japanese cars in Indonesia. And what do we get back? We still don’t have our own car industry, our national car or our own national motorcycles production. Even though we have a very large “captive market”; in 2018, 1.1 million cars & 6.5 million motorcycles were sold in Indonesia.

Apparently, what he is referring to, is that while the Japanese car industry flooded Indonesia with its cars and badly polluting scooters, there were no benefits to the state or to the people of Indonesia. I can go much further and point out that according to my investigation, the Japanese car industry corrupted the government officials in most of the Southeast Asian countries, “convincing them” not to build public transportation, instead choking both cities and the countryside with outdated models of private motor vehicles, consequently bankrupting citizens in the process.

In brief: Japan has managed to ruin Southeast Asian cities, preventing them from developing public transportation. And now should it be trusted in such places like Indonesia to develop a high-speed rail system? Indonesia, Laos and Thailand do not think they should trust Japan too much. They trust China much more. And the same goes for the Philippines. Malaysian Prime Minister, Mahathir Mohamad, when re-elected last year, stopped several high-profile projects with China, but now, it seems, has been discovering an appetite for cooperation with Beijing.

But the report speaks (using unacademic language, suddenly) about how China poached the high speed train project from the Japanese.

Kenya – BRI: New modern train terminal in Nairobi

Professor Mira Lubis, from Tanjungpura University in Pontianak, West Kalimantan, Indonesia, stated for this essay, her hope that BRI could improve life and environment on her devastated island:

From what I know about BRI, I believe that its efforts would be mutually beneficial for both Indonesia and PRC. In Southeast Asia, the focus of BRI will be what could be described as the Maritime Silk Road. Indonesia is an archipelago with over 17,000 islands. Since 2014, our government is aiming at transforming Indonesia into what it calls the ‘Global Maritime Axis’. It means, developing ports and shipping lanes among other vital projects. This would be in synergy with BRI; BRI could strengthen Indonesia as a maritime power.

My island, Borneo, is ecologically damaged. I hope that it could directly benefit from the cooperation with China and its BRI. China is at the forefront of the struggle for ecological civilization, and I believe in its wisdom. I’m optimistic that BRI might help to bring sustainable development to Borneo.

*****

The CNAS report is ‘all over the place’, selectively attacking BRI and China for its involvement in Africa, South and Southeast Asia, the Middle East and South Pacific (Oceania).

In his essay “China’s road to a win-win ahead of BRI forum” published by the Asia Times, renowned Brazilian analyst Pepe Escobar wrote:

Relentless reports that the New Silk Roads, or the Belt and Road Initiative (BRI), are a perfidious neo-imperial debt trap set up by Yellow Peril 2.0 are vastly exaggerated.

Beijing clinched a proverbial showering of BRI deals with 17 Arab nations, including Egypt, Lebanon and Oman. Not by accident, the forum this year was called Build the Belt and Road, Share Development and Prosperity. Up to 2018, 21 Arab nations had signed BRI memoranda of understanding

These nations are not only BRI partners, but 12 of them also went for strategic partnerships with China…

Little wonder why!

Say China or BRI in Africa, just pronounce those names, and most of the people will show great enthusiasm. Every — even the Western surveys — clearly indicate that all over the continent, people harbor extremely positive feelings forwards China.

In Kenya (where I used to live), I repeatedly heard those who were working on countless Chinese projects, repeat:

This is the first time we are treated by the foreigners like human beings.

Kenya – BRI new government building in Nairobi

People in Europe and North America love to adopt ‘politically correct speech’, but words somehow do not translate into deeds. Chinese workers may sometimes be rough, but they treat Africans like brothers and sisters. They also try to compensate them as if they would be their own.

But the CNAS report only criticizes China’s involvement in Africa, while African voices are rarely allowed to penetrate the uniform and dogmatic Western mainstream media.

An influential Ugandan analyst and opposition figure, Arthur Tewungwa, wrote for this essay:

The basic assumption of Africans is that they are stupid and ignorant of history, politics, and the global financial arrangement of the world. The scaremongering of Chinese global domination does not really wash on a continent that is still under a sustained attack from the very forces that led us into slavery, colonialism and its manifestation, neo-colonialism. Using the Ugandan opposition’s criticisms of the government’s (a staunch ally of the US and its regional sheriff) misuse and theft of Chinese aid while ignoring the fact that the same has been going on for the last 30 years with IMF and World Bank funds which the opposition has been criticizing, confirms that assumption.

Ugandans don’t view China as a dangerous hegemon; they are still too busy trying to extract themselves from the current relationship with hegemon that has had its boot on the country’s neck for the last 300 years. The opposition criticism was aimed at the conduct of America’s principal, not the misrepresented intentions of China. The IMF and World Bank have not covered themselves in glory in Africa and ignoring that fact just plays more into China’s hands.

*****

In the South Pacific (Oceania) where I also spent several years of my life (writing a book about the plight of Melanesia, Polynesia and Micronesia), CNAS dishonestly criticizes the BRI project in Vanuatu.

Let me be brutally frank here: The West has almost ruined the entire Oceania by its unbridled consumption, by neo-colonialist policies; from the Solomon Islands to the Marshall Islands. Global warming has caused the near disappearance of such wonderful countries like Kiribati, Marshall Island and Tuvalu.

What has the West done to save them? Nothing! Just dumping junk food on Samoa and Tonga, on the Federated States of Micronesia, or on the Marshall Islands (RMI).

China has patiently and full-heartedly been trying to help: by planting mangroves, building anti-tsunami walls, elevating government offices, schools and medical posts up on stilts. It has built stadiums in order to improve the health of the desperately obese local population (on some islands, around 90% of the population are suffering from diabetes).

And what has the West done, after observing the great success of China? It went to Taiwan, and as the former Minister of Foreign Affairs of the RMI, Tony de Brum explained to me, began ‘encouraging Taipei’ to bribe local governments, so they would recognize Taiwan as an independent country; something that even the West has not done. As a result, predictably, Beijing was forced to break diplomatic relations and to withdrow its help. The result: Taiwan has done nothing for Oceania. Only the ordinary people in South Pacific have become the victims.

Laos – BRI. Bridge over Mekong River for high-speed train

Those South Pacific countries that ‘stayed with China’ are doing incomparably better. Why don’t we hear about all this from the West-sponsored reports? Why do we only read dirt, as well as nihilist speculation? Why not facts? Why not the truth, that it is the West that is destroying the world, and has been for decades and centuries?

*****

BRI is not perfect, yet, but on the global scale, it is the best that humanity has right now. And it has been improving, month after month.

Ugandans had 300 years of horrors of ‘Western democracy’ and ‘freedom’. Latin Americans have been beaten into submission for over 500 years.

In Washington, London and Paris, they love to say: “we are all the same”. Such ‘logic’ washes out their crimes. It means: “everyone is as greedy and brutal as we are”. But, no, we are not the same! Cultures are different, on all corners of the globe. Some countries are expansionist, aggressive and obsessed with self-righteousness as well as complexes of superiority. Some are not. China is not. It never was. It never will be. If attacked or antagonized, it defends itself; and if threatened in the future, it will defend itself again. But it does not build its wealth on plunder, and on the corpses of the others, as the West has been doing for long centuries.

BRI is the exact contrast to the Western colonialism and imperialism. I say it not because I am defending some theory on these pages, but because I have seen the Chinese ‘New Silk Road’ in action, in places where I have lived and worked: Asia, the Middle East, Oceania, Latin America and Africa. In places where almost no one dares or cares to go: except for those few tough and ‘insane’ individuals like myself, and for the Chinese internationalists! I know such places intimately. Places where local people are almost never given an opportunity to speak; they never appear on the pages of the Western mass media, or on television screens, or in reports such as the one published by CNAS.

Until recently, their voices and lives mattered nothing. Now they do. They matter a lot.

These people exist; these people are alive; they want to breath, to live and to dream. I swear they do. And for them, especially for them, now exists the BRI!

• All photos by Andre Vltchek

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