Category Archives: Economy/Economics

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.

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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.

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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

NATO: No Need, NEXIT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rising Politics of Intolerance and the Need for Unity

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

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

Rising far-right terror

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

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

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

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

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

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

Cries of hate; modes of tolerance

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

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

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

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

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

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

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

Unity not division

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

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

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

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

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