Category Archives: IMF

Agrarian Crisis: Father of Green Revolution in India Rejects GM Crops as Farmers Demand Justice in Delhi

Genetically modified (GM) cotton in India is a failure. India should reject GM mustard. And like the Green Revolution, GM agriculture poses risks and is unsustainable. Regulatory bodies are dogged by incompetency and conflicts of interest. GM crops should therefore be banned.

You may have heard much of this before. But what is different this time is that the claims come from distinguished scientist P.C. Kesaven and his colleague M.S. Swaminathan, renowned agricultural scientist and geneticist and widely regarded as the father of the Green Revolution in India.

Consider what campaigner and farmer Bhaskar Save wrote in his now famous open letter in 2006:

You, M.S. Swaminathan, are considered the ‘father’ of India’s so-called ‘Green Revolution’ that flung open the floodgates of toxic ‘agro’ chemicals, ravaging the lands and lives of many millions of Indian farmers over the past 50 years. More than any other individual in our long history, it is you I hold responsible for the tragic condition of our soils and our debt-burdened farmers, driven to suicide in increasing numbers every year.

Back in 2009, Swaminathan was saying that no scientific evidence had emerged to justify concerns about GM crops, often regarded as stage two of the Green Revolution. In light of mounting evidence, however, he now condemns GM crops as unsustainable and says they should be banned in India.

In a new peer-reviewed paper in the journal Current Science, Kesaven and Swaminathan state that Bt insecticidal cotton has been a failure in India and has not provided livelihood security for mainly resource-poor, small and marginal farmers. These findings agree with those of others, many of whom the authors cite, including Dr K.R. Kranthi, former Director of the Central Institute for Cotton Research in Nagpur and Professor Andrew Paul Gutierrez and his colleagues.

The two authors conclude that both Bt crops and herbicide-tolerant crops are unsustainable and have not decreased the need for toxic chemical pesticides, the reason for these GM crops in the first place. Attention is also drawn to evidence that indicates Bt toxins are toxic to all organisms.

Kesaven and Swaminathan note that glyphosate-based herbicides, used on most GM crops, and their active ingredient glyphosate are genotoxic, cause birth defects and are carcinogenic. They also note that GM crop yields are no better than that of non-GM crops and that India already has varieties of mustard that out-yield the GM version which is now being pushed for.

The authors criticise India’s GMO regulating bodies due to a lack of competency and endemic conflicts of interest and a lack of expertise in GMO risk assessment protocols, including food safety assessment and the assessment of environmental impacts. They also question regulators’ failure to carry out a socio-economic assessment of GMO impacts on resource-poor small and marginal farmers.

Indeed, they call for “able economists who are familiar with and will prioritize rural livelihoods, and the interests of resource-poor small and marginal farmers rather than serve corporate interests and their profits.”

In the paper, it is argued that genetic engineering technology is supplementary and must be need based. In more than 99% of cases, the authors argue that time-honoured conventional breeding is sufficient. In other words, GM is not needed.

Turning to the Green Revolution, the authors say it has not been sustainable largely because of adverse environmental and social impacts. Some have argued that a more ‘systems-based’ approach to agriculture would mark a move away from the simplistic output-yield paradigm that dominates much thinking and would properly address concerns about local food security and sovereignty as well as on-farm and off-farm social and ecological issues associated with the Green Revolution.

In fact, Kesaven and Swaminathan note that a sustainable ‘Evergreen Revolution’ based on a ‘systems approach’ and ‘ecoagriculture’ would guarantee equitable food security by ensuring access of rural communities to food.

There is a severe agrarian crisis in India and the publication of their paper (25 November) was very timely. It came just three days before tens of thousands of farmers from all over India gathered in Delhi to march to parliament to present their grievances and demands for justice to the Indian government.

According to the Charter of Indian Farmers, released to coincide with the farmers’ march in Delhi:

Farmers are not just a residue from our past; farmers, agriculture and village India are integral to the future of India and the world.

Successive administrations in India have, however, tended to view Indian farmers as a hindrance to the needs of foreign agricapital and have sought to run down smallholder-based agriculture – the backbone of Indian farming – to facilitate the interests of global agribusiness under the guise of ‘modernising’ the sector, thereby ridding it of its ‘residue’ farmers.

To push this along, we now have a combination of World Bank directives and policies; inappropriate commodity cropping; neoliberal trade and a subsequent influx of (subsidised) agricultural imports; and deregulation, privatisation and a withdrawal of government support within the farm sector, which are all making agriculture economically unviable for many farmers.

And that’s the point, to drive them out of agriculture towards the cities, to change the land laws, to usher in contract farming and to displace the existing system of smallholder cultivation and village-based food production with one suited to the needs of large-scale industrial agriculture and the interests of global seed, pesticide, food processing and retail corporations like Monsanto-Bayer, Cargill and Walmart. The aim is to lay the groundwork to fully incorporate India into a fundamentally flawed and wholly exploitative global capitalist food regime.

And integral to all of this is the ushering in of GM crops. But as Kesaven and Swaminathan imply, GM agriculture would only result in further hardship for farmers and more difficulties.

Of course, these two authors are not the first to have questioned the efficacy of GM crops or to have shown the science or underlying premises of GM technology to be flawed. Researchers whose views or findings have been unpalatable to the GMO industry in the past have been subjected to vicious smear campaigns.

Despite the distinguished nature of the two scientists (or more likely because they are so distinguished and influential) who have written this current paper, we may well witness similar attacks in the coming days and weeks by those who have a track record of cynically raising or lowering the bar of ‘credibility’ by employing ad hominem and misrepresentation to suit their pro-GMO agenda.

And that’s because so much is at stake. India presents a massive multi-billion-dollar market for the GMO industry which already has a range of GM crops from mustard and chickpea to wheat, maize and rice in the pipeline for Indian agriculture. The last thing the industry wants is eminent figures speaking out in this way.

And have no doubt, GM crops – and their associated chemical inputs – are huge money spinners. For example, in a 2017 article in the Journal of Peasant Studies, Glenn Stone and Andrew Flachs note that Indian farmers plant the world’s largest area to cotton and buy over USD 2.5 billion worth of insecticides yearly but spend only USD 350 million on herbicides. The potential for herbicide market growth is enormous and industry looks for sales to reach USD 800 million by 2019. Moreover, herbicide-tolerant GM traits are the biotechnology industry’s biggest money maker by far, with 86 percent of the world’s GM acres in 2015 containing plants resistant to glyphosate or glufosinate. However, the only GM crop now sold in India is Bt cotton.

If we move beyond the cotton sector, the value capture potential for the GMO biotech sector is enormous. Clearly, there is much at stake for the industry.

The negative impacts of the Green Revolution can be reversed. But if commercial interests succeed in changing the genetic core of the world’s food supply, regardless of warnings about current failures of this technology and its unintended consequences at scientific, social and ecological levels, there may be no going back. Arrogance and ignorance passed off as ‘scientific’ certainty is not the way forward. That was a salient point when Bhaskar Save outlined his concerns about the impacts of the Green Revolution to Swaminathan back in 2006.

Scientists can and do change their views when presented with sufficient evidence about the flaws and negative impacts of technologies. This is how science and debate move forward, something which seems lost on the industry-backed scientists and ideologues who tout for GM.

It also seems lost on politicians who seem more intent on doing the bidding of foreign agricapital rather than listening to Indian farmers and following a more appropriate agroecologically-based route for rural development.

Argentina and France: Opponents of IMF versus Yellow Vests

What do Argentinian protesters have in common with French protesters?  They both strongly dislike their governments, and their leaders (sic).

The protests in Argentina against the upcoming G20 meeting and around the IMF are just a pretext for an overall malaise – which is an understatement – vis-à-vis President Mauricio Macri and his debt-driven austerity program, that has left hundreds of thousands jobless. People who had decent jobs under the Kirchner governments have now joined the ranks of the unemployed and are begging for survival. Macri has driven the poverty rate from about 14%, where it was in November 2015, a months before the Presidential elections, to more than 35% in September 2018, and all the while increasing tariffs for transportation and basic services such as electricity, gas, water, health care, education; in fact, privatizing such vital public services to the point where only higher middle class and elite can afford them.

That, of course, will leave a vast majority of the people uneducated and without basic health care, precisely what neoliberalism wants. Decimating the number of poor people to a minimum needed for useful slavehood and leaving those who vegetate along, struggling for one meal at the time without education, without a job, so they don’t have the time, energy and political savvy to protest against the ruling class.

Greece is an outstanding example. Within less than ten years the once cheerful, happy and economically relatively well-off country was destroyed into misery by foreign imposed debt and austerity programs.  By now, almost all public assets were sold or privatized to pay for the horrendous debt service. Public health services are on a drip, there is a lack of special medication, like for cancer, schools are closed or privatized, pensions cut to unlivable levels, unemployment rampant – all leading to extreme poverty and skyrocketing suicide rates, about which nobody dares speaking.

That’s the making of the west. In the case of Greece even worse. Their European brother and sister countries went along with the loot. In fact, they pushed Greece into her demise, especially Germany, France, the European Central Bank (ECB), and, of course, the entire European Brussels apparatus, led by the unelected European Commission (EC) and, and eventually with the ‘official’ outside hammer, the IMF. Greece had to go.

Is Argentina going to become under Macri the Latin American Greece? Could well be. By now the country is encircled by neoliberal and fascist neighbors, Brazil, Chile, Paraguay, Uruguay. Bolivia is a laudable exception. All the others will do what Washington mandates; whatever it takes to support Macri and his IMF-imposed economic killer policies, that – in the end – will sell out the resource-rich country to foreign oligarchs and corporations, to the US and NATO. Yes, NATO, unbelievable, but true. NATO is officially in south America, as Colombia by her own choice has become a NATO country.

From Colombia to Argentina and actually to all of Latin America is like a walk in the park, with all the borders of the partly newly installed neoliberal / neofascist governments wide open – for NATO forces, that is. Macri has already invited the US to establish several US military bases. In July 2018 Sputnik reported that President Macri has given green light to establish at least three US bases in the provinces of Neuquén, Misiones and Tierra del Fuego. Their creation would be financed by the US Southern Command.”

And now, in the midst of this man-made – Macri-made – socioeconomic calamity, he invites the G20 (30 November to 1 December 2018) to feast on Argentina’s goodies, to see for themselves what can be made of an otherwise prosperous country so that prosperity is ‘shared’ and outsourced to foreign oligarchs, banks and corporations. Wonderful. For that G20 event, Macri mobilized some 22,000 military forces to guarantee the security of the chiefs of state.

Surely, after the G20 summit, new austerities will be imposed, because everybody sees there is more to be milked from Argentina. They see what they were able to do to Greece.  When common sense would dictate – stop, that’s it, that’s all we can take – there is an opening for even more to be squeezed out of the country. In Argentina there is still a lot of milking to be done. It has just started. If nothing else, the newly Washington shoed-in president of Brazil, Jair Bolsonaro, will teach Macri how to do even better for the western money sharks.

In France, the Yellow Vests protests against higher fuel prices and labor reform laws is just a pretext for something much bigger – a growing awakening of the French people, a steadily increasing recognition of how the slippery soft-speaker Emmanuel Macron is stripping France’s populace of most of their civil and social rights, of their labor rights, and ultimately, still to come, of their jobs.

A number of ‘false flags’ from Charlie Hebdo to Bataclan to the Nice’s 14th July terror attacks, have helped Macron to put a permanent State of Emergency – basically Martial Law – into the French Constitution. By doing so, he has created a kind of French “Patriot Act”, slice by slice reducing long acquired social rights, transforming them into increased profits for foreign and French corporations and banking giants. Big wonder, Macron is a Rothschild child. He has been put into his position to uphold and expand the Rothschild clan’s banking empire, expanding it way beyond the French borders.

Who are the Yellow Vests or ‘gilets jaunes’ in French? The name refers to the yellow phosphorescent vests that each and every French driver needs to carry in his vehicle for visibility and protection in case of an incident on the highway. The movement started on 10 October, propagated through Facebook against the Macron imposed increase of fuel taxes. It then expanded rapidly into a movement of discontent with the continuous loss of purchasing power of the common people through budget cuts and soft but steadily increasing austerity imposed on the French citizenry. That, plus the decay of public services, especially in urban peripheries, has transformed the Yellow Vests movement into a vivid protest against Macron, an outright call for Macron’s resignation.

Hundreds of thousands – cumulatively several millions – of Yellow Vests have demonstrated and blocked at times most of Paris during the past two weeks, to reverse the fuel tax increase and to basically regain their social rights and financial purchasing power, increase salaries to at least keep pace with inflation. Diesel prices have already increased in 2018 alone by 23% and gasoline prices by 15%. These prices should increase further by 2019 according to a Macron imposed law.

Can protests in the street remove a President?  A President who came to power with less than 27% of the French eligible voters, a President who built his power on a movement, called “En Marche” (something like ‘moving on’) which hardly even existed a year before Macron’s ‘election’ in May 2017, an election based on false propaganda, selling heaven to desperate people, who after socialist President François Hollande deceived his country bitterly, leaving his presidency with a popularity rate of less than 10% – these people were ready to accept any ‘populist’ lie in the hope that life would become better.

Well, as usual, the ruling class – almost always the financial elite – took advantage of the desperate situation and bingo! Macron is legally in office for 5 years, until 2022. Removing him the ‘democratic way’, through a Parliamentary vote of confidence, is a slim chance, as he has an absolute majority in Parliament, also called the French National Assembly.

So far Macron has been able to impose his ‘austerity’ without the open help of the IMF. But, be sure, with Christine Lagarde at the helm of the IMF, a former French Finance Minister, with close ties to Macron, he’ll most certainly get IMF ‘advice’ on how to continue softly squeezing the juices out of the French people, of their, since the end of WWII, accumulated and hard fought-for social benefits. Maybe also Greek style?

Curiously, the European Commission and the ECB are much more generous with France than with Italy, when it comes to adhering to the arbitrary 3% deficit limit. Italy was scolded, called to order and to submit a revised budget, when deputy PM, Matteo Salvini, presented Italy’s 2019 budget with a 2.9% deficit. France, on the other hand, has been running a deficit above 3% for years, but is gently reminded to please look into their finances a bit more carefully. In other words, the EU is treating brothers and sisters with different yard sticks, thus, helping Macron to do whatever he sees fit to push austerity down the French citizens’ throats. And if they protest, well, we see what’s happening now. There is the State of Emergency that allows the most brutal police crack-down, if needed. And Macron may well need it, if he wants his presidency to survive.

The French people, are, however, special. They prompted the French Revolution in 1789, the legacy of which still reverberates in legal systems around the world. French students started 40 years ago, the 1968 student and workers revolt. It began on the premises of “equal rights and liberty” between men and women. It led to strengthening workers unions and eventually to many workers rights and benefits, precisely those that already former President Sarkozy attempted to dismantle and for which Macron was installed to finish the job.

There is a direct relation between what happened in 1968 and what is occurring now. Will the people prevail?  Will France set an example for the rest of Europe?  Mind you, Europe is in the plans to be derailed and robbed similarly and through different means, one of which is a massively increasing influx of so-called refugees or migrants from poor countries bordering Europe. Absorbing millions of homeless souls from western destroyed countries, is a challenge Europe may not survive. Macron may just be a convenient intermediary.

So, what do the people of Argentina and the people of France have in common? They both want to get rid of a despotic president, implanted by the western financial elite to steal the socioeconomic coffers of their heritage, and which, if not stopped, may continue a movement throughout the Americas and Europe.

Approaching Development: GMO Propaganda and Neoliberalism vs Localisation and Agroecology

What people communicate is a matter of choice. But what can be more revealing are the issues they choose to avoid. There are certain prominent pro-GMO activists who describe themselves as ‘science communicators’. They hit out at those who question their views or who have valid criticisms of GM technology and then play the role of persecuted victim, believing that, as the self-appointed arbiters of righteousness, they are beyond reproach, although given their duplicity nothing could be further from the truth.

Instead of being open to questioning, they attempt to close down debate to push a flawed technology they have a vested (financial-career) interest in, while all the time appealing to their self-perceived authority, usually based on holding a PhD in molecular biology or a related discipline.

They relentlessly promote GM and industrial agriculture and unjustifiably cast critics as zealots who are in cahoots with Greenpeace or some other group they have a built-in dislike of. And they cynically raise or lower the bar of ‘credibility’ by ad hominem and misrepresentation so that studies, writers and scientists who agree with them are commended while those who don’t become subjected to smear campaigns.

Often with ties to neoliberal think tanks, pro-GMO lobbyists call for more deregulation and criticise elected governments or regulatory bodies which try to protect the public interest, especially where genetic engineering and associated chemical inputs (for instance, glyphosate) are concerned. The same people push the bogus idea that only GM agriculture can feed the world, while seeking to discredit and marginalise alternative models like agroecology and ignoring the structural violence and injustices brought about by global agricapital interests (from whom they receive funding) which help determine Codex, World Bank, IMF and WTO policies. By remaining silent or demonstrating wilful ignorance about the dynamics and injustices of the political economy of food and agriculture, they tacitly approve of its consequences.

They also frame the GMO debate as pro-science/pro-GMO vs anti-science/anti-GMO: an industry-promoted false dichotomy that has sought to close down any wider discussion that may lead the focus to fall on transnational agribusiness interests and their role in determining an exploitative global food regime and how GM fits in with this.

This is how ideologues act; not how open discourse and science is carried out or ‘communicated’.

Broadening the debate

A participant in any meaningful discussion about GM would soon appreciate that ethical, political, environmental and sociological considerations should determine the efficacy and relevance of this technology in conjunction with scientific considerations. Unfortunately, pro-GMO advocates want to depoliticise food and agriculture and focus on the ‘science’ of GM, yield-output reductionist notions of ‘productivity’ and little else, defining the ‘problem’ of food and agriculture solely as a narrow technocratic issue.

But to understand the global food regime, we must move beyond technology. Food and agriculture have become wedded to structures of power that have created food surplus and food deficit areas and which have restructured indigenous agriculture across the world and tied it to an international system of trade based on export-oriented mono-cropping, commodity production for a manipulated and volatile international market and indebtedness to global financial institutions.

More specifically, there are the deleterious impacts of the nexus between sovereign debt repayment and the ‘structural adjustment’ of regional agriculture; spiralling input costs for farmers who become dependent on proprietary seeds and technologies; ecocide, genocide and the destruction of food self-sufficiency; the fuelling of barbaric, industrial-scale death via animal-based (meat) agriculture and the colonisation of land to facilitate it; US/EU subsidies which mean farmers in developing countries cannot achieve prices to cover their costs of production; and degraded soils, polluted oceans and rising rates of illness, etc.

If any one country epitomises much of what is wrong with the global food regime, it is Argentina, where in an October 26th 2018 article (‘Soy destruction in Argentina leads straight to our dinner plates’) The Guardian newspaper’s analysis of (GM) soy cultivation highlighted many of the issues set out above.

Whether the impacts of the global food regime result from World Bank/IMF directives and geopolitical lending strategies, neoliberal plunder ‘ease-of-doing-business’ ideology,  undemocratic corporate-written trade deals or WTO rules, we are seeing the negative impacts on indigenous systems of food and agriculture across the world, not least in India, where a million farmers intend to march to Delhi and the national parliament between 28 and 30 November.

India’s manufactured ongoing agrarian crisis is adversely affecting the bulk of the country’s 840 million rural dwellers. And all for what? To run down and displace the existing system of peasant-farmer-based production with a discredited, ecologically unsustainable (GMO) model run along neoliberal ‘free’ market lines by global agribusiness, a model which is only profitable because it passes on its massive health, environmental and social costs to the public.

Neoliberal dogma

Tim Worstall of the Adam Smith Institute in London says of India’s agrarian crisis that Indian farmers should be left to go bust because they are uncompetitive and relatively unproductive. But even where farmers in India produce world record yields, they are still heavily indebted. So why can’t they compete?

Putting the huge external costs of the model of industrial agriculture which Worstall compares Indian agriculture to aside (which he conveniently ignores), the issue is clear: a heavily subsidised US/EU agriculture depresses prices for Indian farmers both at home and on the international market.

Policy analyst Devinder Sharma says that subsidies provided to US wheat and rice farmers are more than the market worth of these two crops. He also notes that, per day, each cow in Europe receives a subsidy worth more than an Indian farmer’s daily income. He suggests: let the US and EU do away with subsidies, relieving taxpayers of such a costly burden and let Indian farmers compete properly; then see that it is the Indian farmer who produces the cheapest food; and then imagine US consumers benefitting from this cheap food.

That is the ‘free’ market which could exist. A fair one not distorted by subsidies. Not the type of market that currently exists and which is ‘free’ only within the ideological parameters set by Worstall and others who promote it.

Proponents of the ‘free’ market and GMOs are big on ‘choice’: letting ‘the market’, the consumer or the farmer decide, without anyone imposing their agenda. This is little more than rhetoric which fails to stand up to scrutiny, given the strategically embedded influence of agricapital over policy makers. If anything encapsulates the nonsense and hypocrisy surrounding this notion of choice are reports about Monsanto and its cynical manipulation of agriculture in Punjab.

According to an article in Delhi’s Sunday Guardian in late 2017 (‘Monsanto’s profits, not Diwali, creating smoke in Delhi’), India’s surplus food grain supply is an uncomfortable fact for the pro-GMO lobby. The piece notes that in 2012 the then Punjab Chief Minister asked Monsanto to set up a research centre for creating maize and, due to fears over water shortages, announced plans to reduce the area under rice cultivation to around 45% to grow maize. Fear-mongering about rice cultivation was reaching fever pitch, stoked by an advertisement campaign from a group of scientists who appealed ‘Reduce the area under rice, save water, save Punjab’.

Conveniently, Monsanto (now Bayer) offers its GM maize as a solution that will increase the level of subsoil water, although that corporation’s inputs and Green Revolution practices led to problems in Punjab and elsewhere in the first place. For instance, fertilisers and pesticides have accumulated in the ground water (causing massive health issues) and their use has also led to poor water retention in soil, leading farmers to pump excessive amounts of ground water.

Punjab’s plan to reduce the area under rice cultivation (a staple food for large sections of the Indian population) with what will most likely be GM animal feed is part of a cynical tactic. Of course, any resulting gap between supply of and demand for food in India will be conveniently filled via global agribusiness and an influx of GMO produce from abroad or by growing it in India (have no doubt, the push is on for that too).

It is reminiscent of unscrupulous attempts to undermine India’s edible oils sector in the late 1990s and current attempts to break traditional cotton cultivation pathways in India to help usher in herbicide-tolerant seeds (which have now ‘miraculously’ appeared on the market – illegally). The ability of hugely powerful corporations to flex their financial muscle and exert their considerable political clout to manufacture ‘choice’ and manipulate policies is the reality of neoliberal capitalism.

Those pro-GMO ‘science communicators’ are silent on such matters and, as with their fellow neoliberal ideologues, have nothing of any substance to say on these types of ‘market-distorting’ power relations, which make a mockery of their ‘free’ choice and ‘free’ market creed.

Indeed, a recent report in The Guardian indicates that neoliberal ‘austerity’ in the UK has had little to do with economics, having failed in its objective of reducing the national debt, and much to do with social engineering. But this is the ideological basis of modern neoliberal capitalism: dogma masquerading as economics to help justify the engineering of the world in the image of undemocratic, unaccountable corporations.

Agroecology and food sovereignty

The industrial agriculture that Worstall compares Indian farmers’ productivity with is outperformed by smallholder-based agriculture in terms of, for example, diversity of food output, nutrition per acre and efficient water use. Imagine what could be achieved on a level playing field whereby smallholder farming receives the type of funding and political commitment currently given to industrial agriculture.

In fact, we do not have to imagine; in places where agroecology has been scaled up, we are beginning to see the benefits. The principles of agroecology include self-reliance, localisation and food sovereignty. This type of agriculture does not rely on top-down corporate ‘science’, corporate owned or controlled seeds or proprietary inputs. It is potentially more climate resilient, labour intensive (job creating), more profitable for farmers and can contribute to soil quality and nutrient-enhanced/diverse diets. Moreover, it could help reinvigorate rural India and its villages.

When the British controlled India, they set about breaking the self-reliance of the Indian village. In a 2009 article by Bhavdeep Kang (‘Can the Indian farmer withstand predatory international giants?’), it is stated:

The British Raj initiated the destruction of the village communities, famously described by Lord Metcalfe as ‘little republics, having nearly everything they can want within themselves.’ India’s ability to endure, he wrote, derived from these village communities: ‘They seem to last where nothing else lasts. Dynasty after dynasty tumbles down but the village community remains the same. It is in a high degree conducive to their happiness, and to the enjoyment of a great portion of freedom and independence.

Metcalfe said this in 1830. However, since independence from the British, India’s rulers have further established ‘village India’s’ dependency on central government. And now a potential death knell for rural India is underway as India’s ruling elite, exhibiting a severe bout of ‘Stockholm syndrome’, sells out the nation to not only Western agribusiness but also to US finance and intelligence interests.

Whether it concerns India or elsewhere, to see the advantages of agroecology, there are those economists, political leaders and ‘science communicators’ who must remove the self-imposed blinkers. This would involve shifting their priorities away from promoting career-building technologies and facilitating neoliberal capitalism towards working for justice, equality, peace and genuine grass-root food sovereignty.

To do that, though, such figures would first have to begin to bite the hand that feeds them.

China: A New Philosophy of Economics

China’s economic philosophy is a far cry from that of the west.

The west consistently seeks to undermine the interests of their partners, be it for trade or political agreements; be it partners from the west, their smaller and weaker brothers; or from the east; or from the south, there is always an element of exploitation, of “one-upmanship”, of outdoing a partner, of domination. Equality and fairness are unknown by the west. Or, when the concept was once known, at least by some countries and some people, it has been erased by indoctrinated neoliberal thinking – egocentricity, “me first”, and the sheer, all-permeating doctrine of “maximizing profits”; short-term thinking, instant gratification or more extreme, making a killing today for a gamble or deal that takes place tomorrow. Futures trading – the epitome of manipulating economic values. Only in the capitalist world.

This has become a key feature of western commerce and trading. It’s manipulation and exploitation over ethics; it’s Profits Über Alles! Doesn’t it sound like fascism? Well it is. And if the partner doesn’t fall for the ruse, coercion becomes the name of the game, and if that doesn’t work the western military move in with bombs and tanks, seeking regime change, destroying the very country the west wants to dominate. That’s western brutal economics – full hegemony. No sharing.

China’s approach is quite different. It’s one of sharing, of participating, of mutual benefits. China invests trillions of dollars equivalent in developing countries – Asia, especially India and now also Pakistan, Africa, South America, largely for infrastructure projects, as well as mining of natural resources. Unlike the gains from western investments, the benefits of China’s investments are shared. China’s investment and mining concessions are not coerced, but fairly negotiated. China’s investment relationship with a partner country remains peaceful and is not ‘invasive’ and abusive, as are most of those of the west which uses threats and guns to get what they want.

Of course, the west complains about Chinese investments, lying how abusive they are, when in reality the west is upset about Chinese competition in Africa and South America, continents that are still considered part of the western domain, as they were colonized for about thousand years by western powers and empires, and as of today, African and Latin-American countries are neo-colonized, no longer (for now) with brute military force, but with even more ferocious financial strangulation, through sanctions, boycotts and embargos; all highly illegal by any international standards. But there aren’t any international laws that are upheld. International courts and judges are coerced to obey Washington’s dictates, or else… literally “or else”; and these are serious threats.

Take the case of West and Central Africa, former French colonies. The French West African zone includes eight countries: Benin, Burkina Faso, Guinea Bissau, Ivory Coast, Mali, Niger, Senegal, Togo; and the French Central African area comprises six countries – Cameroon, the Central African Republic, Chad, Republic of the Congo, Equatorial Guinea and Gabon. All 14 countries have a common currency, the CFA franc (CFA = Communauté financière africaine – African Financial Community).

They are two separate currencies, though always at parity and therefore interchangeable. The Western and Central African monetary union have separate central banks, the Banque Centrale des États de l’Afrique de l’Ouest, BCEAO, headquartered in Dakar, Senegal; and the Banque des États de l’Afrique Centrale, BEAC, in Yaoundé, Cameroun. Both currencies are guaranteed by the French treasury. This means, in fact, that the economy of these 14 countries not only depends on France, but setting the value of the currency (at present one € = 655 CFA francs) is entirely the prerogative of the Banque de France (French Central Bank). This ultra-complicated setup between the two groups of former and new French colonies is not only a matter of French accounting, but foremost a means to confuse and distract the mostly innocent observer from a flagrant abusive reality.

With the French control over the West and Central African currencies, the foreign trading capacity of these countries is reduced to what France will allow. France has a de facto monopoly on these countries’ production. Should France stop buying their “former-new” colonies’ goods, the countries go broke, as they have been unable to develop alternative markets under the French yoke. Thus, they are always at the mercy of France, the IMF, World Bank and the African Development Bank. From labor slaves up to the early 1960s, they have become debt slaves of the neoliberal age.

In addition, to back this French Treasury guarantee, 85% of the countries’ foreign exchange reserves are blocked by the French Central Bank and may only be used by the respective counties against specific permission and as a loan. Imagine! The “former” French colonies have to borrow their own money from the French Central Bank. Similar debt enslaving is going on in former British and Portuguese colonies, though, none of them is as abjectly abusive as are the French.

Big wonder that Chinese investors are highly welcome in Africa. And knowing western manipulating and deranged mindsets, no wonder that China is demonized by the west as exploiting Africa to the bones, when exactly the contrary is the case. But almighty western lie-propaganda media has the brainwashed western populace believe China is stealing African natural resources. Chinese fairness is indeed tough competition against the usual western trickery and deceit.

In Africa, China is not only focusing on buying and trading natural resources, but on training and using local African brainpower to convert Africa from a western slave into an equal partner. For example, to boost African autonomy, China is using an approach, Gaddafi intended to apply – entering the wireless phone system, conquering some of the market with efficient batteries, and providing cheaper and more efficient services than the west, hence directly competing with the western exploited African telephone market. Chinese phones also come with their own browsers, so that internet may eventually be accessed in the remotest places of Africa, providing a top tool for education. Challenging the EU and US dominated multi-billion-dollar market, is just one of the reasons Gaddafi was miserably murdered by French-led NATO forces. Of course, China’s presence is a bit more difficult to kick than was Gaddafi’s.

This is just one more signal that China is in Africa – and Asia and Latin America – not just for the legendary American Quick Buck, but for genuine investments in long-term economic development which involves developing transportation networks, efficient and independent financial systems which may escape the western SWIFT and FED / Wall Street banking system through which US sanctions are imposed. This may involve the creation of government controlled blockchain currencies – see also Venezuela’s hydrocarbon-backed Petro – and linking African currencies to the Yuan and the eastern SCO (Shanghai Cooperation Organization) monetary system, freeing Africa from the dollar hegemony. With the help of China and Russia, Africa may, in fact, become the forerunner of crypto-currencies and, in the case of west-and central Africa, the 14 countries would be able to gain financial autonomy, and to the chagrin of the French Central Bank, manage their own financial resources, breaking loose from under the little-talked about French yoke. It is quite conceivable that with Chinese development assistance Africa will become an important trading partner for the east, leaving western exploiting and abusing business and banking magnates behind in the dust.

The Overseas Private Investment Cooperation (OPIC), a US private lending as well as investment guarantee agency, is upset about US investors losing out to Chinese and wants US corporations to compete more aggressively which is precisely what Africa rejects, America’s violent bombing approach to impose her trade and concession rules with the coercing help of the IMF and the World Bank. Africa is seeking – finally – sovereignty, deciding over her own financial and political destiny. This includes choosing investors and trading partners of their liking.

Many African and South American countries prefer China’s yuan-investments, rather than Washington’s US-dollar investments. It’s ‘softer’ money coming from the Chinese. For China it’s also a way of diverting the world from the US-dollar, providing incentives for countries to divest their dollar reserves into yuan reserves. That is already happening at accelerating speed.

China’s outlook at home and abroad is nothing less than spectacular. On the home front, they are building cutting-edge technology transport infrastructure, such as high-speed railways, for example, connecting Shanghai and Hangzhou, cutting travel time from one and a half hour in half. China’s high-speed bullet train connects for the first time Hong Kong with the mainland, cutting travel time Hong Kong to Beijing from 24 hours to 9 hours.

In October 2018, after nine years construction, President Xi Jinping opened the world’s longest sea crossing bridge, linking Hong Kong to Macau and the mainland Chinese city of Zhuhai. The bridge is 55 km long, about 20 times the length of San Francisco’s Golden Gate bridge. In urban development, existing and new multi-million people cities are planned, expanded and stamped out of the ground in less than a generation.

China has just built a US$ 2.1 billion AI (Artificial Intelligence) industrial park, and is not sleeping either on the environmental protection and development front, investing billions in research and development of alternative clean energies, especially solar power and its storage potential, next generation beyond lithium batteries, ranging from lithium solid state to electrolyte materials to graphene batteries and eventually to copper foam substrate. And that’s not the end of the line. Each battery technology offers increased capacity, safety and charging and discharging speed.

On the domestic and international front, the Belt and Road (B and R) Initiative – the New Silk Road – is China’s President Xi’s phenomenal geo-economic initiative to connect the world from China with several transport routes and develop in a first step Western China, Eastern Russia, Central Asia and Eastern Europe – all the way to the frontiers of western Europe. This massive economic development program includes industrial parks, trade and cultural interchanges, research and development through existing universities and new science and learning centers. Maritime routes are also foreseen entering Africa through Kenya and Southern Europe and the Middle East via the Greek port of Piraeus and Iran. A southern route is also planned to enter the southern cone of Latin America.

The endeavor is so huge, it has recently been inscribed into the Chinese Constitution. It will mobilize in the coming decades and possibly century trillions of yuan and dollar-equivalent of investments, mostly from China, Russia, the other SCO countries, as well as European partners, and foremost the Beijing-based AIIB (Asian Infrastructure and Investment Bank) which has already 70 member countries, among them Australia, Canada, Western European nations and close to 20 prospective new countries; but not the United States of America.

This giant project, is, of course, not without challenges. While the need for proof of “credit worthiness” by being tied to the IMF and World Bank of the eighties and nineties had since long faded into oblivion, China is still bound to the IMF and WB. Why?  In my opinion it proves two things, The People’s Bank of China – the Chinese Central Bank – is still controlled by the FED and BIS (Bank for International Settlement, alias, central bank of all central banks), and a strong Fifth Column that doesn’t yield an inch of their power. The Chinese leadership could implement the necessary changes towards full financial sovereignty but, why is that not happening? Western threats and their secret services have become ever more sophisticated abduction and “neutralizing” machines over the past 70 years.

The next question is what’s the Chinese lending limit to countries who have already or will subscribe to the Belt and Road Initiative to help them repay western debt and integrate into the new eastern economic model and monetary system? The question is relevant, because China’s money supply is based on China’s economic output; unlike western currencies which are purely fiat money (hot air).

Also, how will ownership of foreign assets; i.e., infrastructure funded and perhaps built, be dealt with? Will they become Chinese property, increasing China’s capital base and flow of money? Or would they be negotiated as long-term concessions, after which a country may repay to acquire sovereign ownership, or transfer part or all of the assets to China as a shareholder. These are relevant considerations, especially with regard to the huge B&R investments foreseen in the coming years. These decisions should be made autonomously by Chinese leadership, totally outside the influence of western monetary czars, like IMF and WB.

Another issue which is steadily and increasingly cropping up in the west, of course, to demonize China and discourage “western civilized” (sic) countries to associate themselves with socialist China is China’s concept of “Social Credits”. It is largely based on what the west calls a dictatorial, freedom-robbing surveillance state with cameras and face-recognition everywhere. Of course, totally ignoring the western own Orwellian Big Brother Surveillance and lie apparatus which calls itself democracy, and, in fact, is a democracy for then the elite of the plutocrats, gradually and by heavy propaganda brainwashing converting what’s left of ‘democracy’ into outright fascism, we, in the west, are almost there. And this, to the detriment of the “Silent Lambs” as per Rainer Mausfeld’s latest book, in German, “Why are Lambs Silent” (German Westend-Verlag). Yes, that’s what we have become: “Silent Lambs”.

It is too easy to demonize China for attempting to create a more harmonious, cohesive and peaceful society. Granted, this surveillance in China as in the west, demolishes to a large extent individualism, individual thinking, thereby limiting human creativeness and freedom. This is a topic which the Chinese socialist government, independent of western critique, may have to address soon to keep precisely one of the key principles of Chinese society alive – ‘social cohesiveness’ and a sense of equality and freedom.

What is the “Social Credit” system? It is a digital footprint of everything the Chinese do, as private citizens, as corporate managers in production as well as banking, workers, food sellers, in order to basically create an ambiance of full transparency (that’s the goal – far from having been reached), so as to establish citizens’ and corporations’ “creditworthiness”, in financial terms, but also assessing crime elements, political inclinations, radicalism, to prevent potential terror acts (interestingly, in the case of most western terror acts, officials say the ‘terrorists’ were known to the police which simply leaves you to conclude that they acted in connivance with the forces of order); and to enhance food safety in restaurants and by other food sellers.

In other words, the aim is to establish corporate and individual “score cards” which will work as a rewards and punishment system, a “carrot and stick” approach. Depending on the crime or deviation from the rule, you may be reprimanded and get ‘debits’ which you may wipe out by changing your behavior. Living under the spell of debits may limit, for example, your access to comfortable or speedy travel, better and speedier trains, air tickets, certain cultural events and more.

Yes, the idea of creating a stable domestic society has its drawbacks – surveillance – demolition of much of individualism, creativity, by implanting conformity. The government’s axiom is “we want a society where people don’t desire to break the rules, but the earliest stage is that they are afraid to break the rules.”

In the end, the question is, will the “Social Credits” approach to societal living, meaning a total surveillance state with every data recorded into a network of total control, be beneficial or detrimental for the Chinese goal to push ahead with her extraordinary and mostly egalitarian economic development approach, transport and industrial infrastructure, scientific research and cultural exchange – called Belt and Road, alias the New Silk Road? Only the future will tell; but the Chinese are not alone. They have solid partners in the SCO and long-term economic development endeavors never work in linear values, but with the unknown of dynamics to which humans are uniquely adapted to adjust.

• First published in New Eastern Outlook (NEO)

Khashoggi versus 50,000 Slaughtered Yemeni Children

The European Parliament has asked on 25 October 2018 for an immediate embargo on the sale of weapons to Saudi Arabia, hence sanctioning the Kingdom of rogue Saudi Arabia which is joining the United States and Israel as the main purveyor of crime throughout the Middle East and the world. France still said they will apply sanctions only if it is proven that Riyadh was indeed involved in the killing of the controversial Saudi journalist. Madame Merkel at least days ago said that Germany would no longer supply the Saudis with arms as a result of the heinous crime committed on Jamal Khashoggi.

No doubt, it was a horrible murder that took place in the Saudi Consulate in Istanbul, with Jamal Khashoggi’s body possibly sawed to pieces, and according to latest accounts, buried in the Consulate’s backyard. And all that now admitted, executed by order of Riyadh. To soften the blow, for business purposes, some European countries would like to argue that it may not have been a premeditated assassination, but possibly a mortal “accident”, which would, of course, change the premises and lessen the punishment – and weapon sales could continue. It’s all business anyway.

Europe has no morals, no ethics, no nothing. Europe, represented by Brussels, and in Brussels by the non-elected European Commission (EC), for all practical purposes is a mere nest of worms, or translated into humans, a nest of white-collar criminals, politicians, business people and largely a brainwashed populace of nearly 500 million. There are some exceptions within the population and fortunately their pool of ‘awakened’ is gently growing.

Even Switzerland, a neutral country according to her Constitution, not a member of the EU, but a staunch adherent to the (non-) European Union through more than 110 bi-and multilateral contracts, it was revealed yesterday, is assisting in Saudi Arabia converting the Swiss built (civilian) Pilatus helicopter into a ferocious war machine. Pilatus has always had that reputation of its controversial convertibility and was particularly known within Switzerland for that reason – but now, they surpass the limit of the tolerable, by helping the criminal and warmonger Saudis to mount a flying war machine in their, the Saudi’s, country – totally against Swiss law and against the Swiss Constitution, but fully tolerated by the Swiss Government.

Back to the real issue: It took the horrendous murder of a famous Saudi-critical and Saudi-national journalist, for the Europeans to react – and that, mind you, grudgingly. They’d rather follow Donald Trump’s line, why lose 110 billion dollars-worth of arms sales to the Saudis, for the murder of a journalist. After all, business is business. Everything else is a farce.

For three and half years, the Saudi’s have waged a horrendous war on Yemen. They have slaughtered tens of thousands of Yemenis – according to the UN Human Rights Commission more than 50,000 children died by Saudi air raids with UK supplied bombs, and US supplied war planes – through lack of sanitation and drinking water induced diseases, like cholera – and an even worse crime, through extreme famine, the worst famine in recent history – as per UNICEF/WHO – imposed by force, as the Saudi’s with the consent of the European allies closed down all ports of entry, including the most important Red Sea Port of Hodeidah.

The European Union, along with the US, have been more than complicit in this crime against humanity – in these horrendous war crimes. Imagine one day a Nuremberg-type Court against war crimes committed in the last 70 years, not one of the western leaders, still alive, would be spared. That’s what we in the west have become. A nest of war criminals, war criminals for sheer greed. They invented a neoliberal, everything goes market doctrine system, where no rules, no ethics, no morals count – just money, profit and more profit. Any method of maximizing profit – war and war industry – is good and accepted. And the  west with its fiat money made of hot air, is imposing this nefarious, destructive system everywhere, by force and regime change if voluntary acceptance is not in the cards.

And we, the people, have become complicit in it, as we are living in luxury and comfort, and couldn’t care less what our leaders (sic-sic) are doing to the rest of the world, to the so-called lesser humans, who live in squalor as refugees, their homes and towns destroyed, bombed to ashes, no schools, no hospitals, and to a large extent no food – yes about 70 million-plus refugees are every day on the move, most of them from the west-destroyed Middle-East. Why should we worry? We live well. To the contrary, these refugees they could steal our jobs. Let them not invade our luxury havens. Rather keep bombing their countries into rubble.

Yemen, strategically highly sought-for, should, of course, not be governed by the Houthis, a socialist-leaning group of revolutionary Muslims which is part of the Shia Zaidi, a branch of the Shia Imamiya of Iran. They finally became sick and tired of the decades-long Washington manipulation of their government. And who better than the stooges of Saudi Arabia to do the dirty job for Washington? And, yes, they don’t have to do it alone. Weapon supplies come from all over Europe, mainly the UK, and France, also Spain, and for a while also from Germany – and well, neutral Switzerland.

No matter that tens of thousands of children are killed, that according to the Human Rights Commission, up to 22 million Yemenis (out of about 30 million population), are in danger of severe famine, and that includes at least 8 million children – children who have for the most part no more access to schools, health services and food – an entire generation or more without education, a well-planned and premeditated gap in society, as is the case in Syria, Iraq and Afghanistan. By killing and depriving children of basic needs, the west is creating a widening gap of educated people, of people that can and would otherwise fight for their countries, for their societies. But – they are gone. That makes it so much easier for the west just to take over – their strategic position, their natural resources and suck empty the social safety funds accumulated by their labor force.

Isn’t that a thought for the illustrious populace who live in western luxury, to lean back in their fauteuils and think about? What if, one day the tables are reversed and we, the west would face justice? Is anybody in the west bold and realistic enough to see such a picture? And as we see these days, history is advancing in giant steps. It’s the 21st Century.  Artificial Intelligence (AI) has more than made inroads in our society. And what if – if those that we consider inferior and our enemies, are, in fact, a few steps ahead of us in AI science and could reverse the picture rather rapidly?

And while we wonder why Saudi-slaughtered Yemenis does not raise a fuss in the western media, but the Saudi killing of a journalist does, all-the-while our linear IMF provided projections increase western GDP by fantastic numbers by 2030, irrespective of the 20% unemployment thanks to AI, that some predict, all these contradictory figures are unimportant, while we can make a killing from killing Yemeni children. But it takes the Khashoggi killing that might stop – if only temporarily, and if only we are lucky – the Saudi war machine. The population of Yemen is unimportant. Why?

Why does it take the assassination of a journalist – granted, a horrendous and grisly murder by his own country’s government – no matter how controversial Jamal Khashoggi was, he has been writing for our western MSM, for the truth tellers, such as the Washington Post and the New York Times. That may have helped making him more important than 50,000 slaughtered and maimed Yemeni children – more important in the sense that only through his abject murder, the Europeans – maybe – will react and ‘sanction’ the Saudis.

But even that is not sure – as the Transatlantic Master Trump, has many trumps up his sleeve, that he may offer or coerce the EU puppets into following his heinous example and spare Riyadh from any punishment, especially as far as weapons are concerned. After all it’s business. Dead children are just that, dead Yemenis, a generation less to worry about.

Brazil: Bolsonaro Towards a Military Dictatorship

   Jair Bolsonaro                   Fernando Haddad

One week before the second round of voting in Brazil, Jair Bolsonaro, the extreme right-wing candidate from the Social Liberal Party (PSL), against Fernando Haddad from the Worker’s Party (PT), Lula’s Party, for Brazil’s Presidential run-off elections, Bolsonaro leads to polls by double digits, about 58 against 42. And the gap is growing, despite the fact that as recent as end of September 2018, Brazilian women campaigned massively against Bolsonaro with the hashtag #EleNao (Not Him). His misogynist record left him with only 27% of women supporters only a couple of weeks ago. Massive cheat-and lie-propaganda increased that ratio by now to 42%. Does anybody seriously believe that Bolsonaro has changed his racist character and his women-degrading attitude?  It is mind-boggling how people fall for propaganda lies and manipulations.

The usual propaganda of deceit from the right has infiltrated every election in the last 5-10 years, starting with the sophisticated internet and propaganda fraud invented by Oxford Analytica (OA), which is largely believed having brought Trump to the White House, Macri to the Casa Rosada in Buenos Aires, Macron to the Elysée in Paris and Mme. Merkel for the fourth time to the German Federal Chanceller’s office in Berlin – among others. OA is also said having helped the BREXIT supporters. In the meantime, OA’s dirty election manipulation methods have been mainstreamed to the mainstream media – with lots and lots of corporate and banking money.

In fact, the frontrunner Bolsonaro is currently being accused by his opponent Fernando Haddad, of a ‘fraud and fake news’ campaign, and that just a few days before the run-off. The charge is that Bolsonaro is running a multi-million-dollar defamation campaign against Haddad, via Whatsapp and other social media. This means sending out literally millions of tailor-made messages to potential groups of voters. That’s the way of the of OA’s algorithms.

According to RT, Haddad told a media conference in Rio:

We have identified a campaign of slander and defamation via WhatsApp and, given the mass of messages, we know that there was dirty money behind it, because it wasn’t registered with the Supreme Electoral Tribunal.

This, after the Folha de S.Paulo newspaper uncovered a suspected election fraud. The publication alleges that a group of entrepreneurs are backing a multi-million-dollar slander campaign that would use several popular social media apps to reach out to Haddad supporters and smear his name with ‘fake news’.

We can only hope that the discovery of this slander and fraud may not be too late to stop Bolsonaro’s end run and to inform voters. Leading to an indictment of Bolsonaro is hardly a realistic chance, as he is supported by the current corrupt and fascist-type Temer Government and all the high judges who have impeded Lula’s legitimate request for running for Presidency. Only voters’ consciousness may make a difference.

Imagine what happens if Bolsonaro is elected? It is hardly fathomable. Bolsonaro has already declared that if elected he will render full power to the military. “When I’m elected, those who will command are the (military) captains”. His word  in Portuguese.

He is a fascist no doubt. There were other fascist military governments in Brazil, like Getúlio Vargas, who reigned from 1930-1945 as a military dictator mostly by decree. He abrogated the 1891 Constitution and introduced a new one in 1934 which was overturned, when finally, in 1945 Vargas was deposed and a new democratization process began with a new Constitution being introduced in 1946. But that was not all for fascism and military dictatorship in Brazil. There was more to come in the decades preceding Lula.

Another brutal military government came to power in 1964 by a coup d’état by the Armed Forces. It ruled Brazil from 1 April 1964 to 15 March 1985 by President Joao Goulart. It came to an end when José Sarney took office on 15 March 1985. What’s important to know is that both the Vargas coup of 1930, as well as the 1964 military coup were supported by the US Embassy in Brazil and the State Department in Washington. Mr. Bolsonaro has already today – after the first election round – the full support of Washington. He was immediately congratulated by the Trump government after the October 7 election results were known.

If no miracle happens within the coming week, Brazil may be slanted to go back some 90 years, into a fierce military dictatorship. Worse, today with the neoliberal doctrine being the overarching last word on economic policies, also for the military. We are looking at full privatization of everything, of social services, water and health privatization has already begun; basic and profitable infrastructure, natural resources, and the IMF, World Bank, FED-Wall Street indebtment is already well under way and its future programmed, including a devastating austerity program which under unelected Mr. Corrupt Temer has already started.

In fact, economic disaster in terms of dependence on IMF, WB and the FED, may also loom under Haddad, who has already said he would work with the financial fiefdom of Washington. As Luiz Inacio Lula did, when he was elected in 2002. He was the “golden example boy” for the IMF, following strictly the rules he was taught would bring progress to his country.  Later he realized what was actually going on within the financial sector of Brazil. He corrected some of the aberrations, but many stayed in place throughout Dilma Rousseff’s Presidency.

Brazil could become South America’s Greece – just multiplied by a factor of 100.

Just imagine the political and economic impact this would have on the Latin American region. Brazil is by far the largest economy of Latin America with a GDP of about 2.1 trillion US-dollars in 2017, a population of 210 million and a landmass 8.516 million km2 – and with the world’s largest known fresh water reserves. Trade without Brazil is unthinkable for Latin America and the world. Plus, a Bolsonaro regime would have full ideological and military support from Washington. In fact, Brazil may soon become the second South American NATO country after Colombia.

How would Venezuela feel, surrounded by two fierce militarized NATO countries? Washington could just smile and watch, while Colombia and Brazil – and their NATO command – would do the rest. Or would they?  Venezuela is on the best way to detach herself from the dollar hegemony and ally with the East. And that is not only in trade, but also in huge investments from China and Russia. Invading Venezuela would not be easy, despite NATO from the east and from the west and with the empire just across the Caribbean.

Back to Bolsonaro. It will not be as easy to thrash this fascist military doctrine, of a President, hitherto hardly known to the outside world, down the average Brazilians’ throats. Their vote and mind may be manipulated, but once they wake up – the election may be past, and the Temer policies implemented by factors of ten – social suffering will increase, à la Greece – people may simply not take it.

They will realize that this entire propaganda farce serves only a few Brazilian oligarchs, but mostly the transnational corporations and banks. Will they take to the streets? Demand another government, fight for their rights? Brazilians are not (yet) the kind to double up and shut up, as the Greeks had to do, weakened by a Government of treason, by an absence of medical and other social services and by a low-low morale that is reflected in an exponentially rising suicide rate, according to the British Lancet. Brazilians may have learned a lesson.

Brazil and the BRICS. Already under Temer, Brazil’s role in the BRICS was merely anecdotal. It was clear that politically Brazil would and could no longer adhere to the principles that was behind the BRICS association, namely, economic independence from the debt masters IMF, World Bank and FED. What with Bolsonaro? It would behoove the BRICS expulsing Brazil; sending Brazilians a warning now, before the run-off elections, that no fascist government could be admitted within the ranks of the BRICS. Fascism is the absolute antidote to the new alliances of SCO, BRICS, EEU, and newly the Caspian Sea Alliance (Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan).

But – and this is highly important – let’s not let it get out of hand. Let not Bolsonaro be elected this coming Sunday. Make the right choice now. Regardless what you are being manipulated to believe. Stand up Brazilians, Women and men – say #NAO Bolsonaro!

IMF, WB, and WTO: Scaremongering Threats on De-Globalization and Tariffs

As key representatives of the three chief villains of international finance and trade, the IMF, World Bank (WB) and the World Trade Organization (WTO) met on the lush resort island of Bali, Indonesia, they warned the world of dire consequences in terms of reduced international investments and decline of economic growth as a result of the ever-widening trade wars initiated and instigated by the Trump Administration. They criticized protectionism that might draw countries into decline of prosperity. The IMF cuts its global economic growth forecast for the current year and for 2019.

This is pure scaremongering based on nothing. In fact, economic growth of the past that claimed of having emanated from increased trade and investments has served a small minority and driven a widening wedge between rich and poor of both developing and industrialized countries. It’s interesting how nobody ever talks about the internal distribution of GDP growth that these handlers and instruments of empire and liars for the elite are boasting about; nobody ever seems to question the way these growth rates are calculated or perhaps just drawn out of hot air? Take the case of Peru, a resource-rich country that boasted in the past often an economic growth of 5% to 7%. On average, the distribution of this growth was such that 80% went to 5% of the population and 20% was to be distributed among 95% of the people. This doesn’t even address the fragmentation of the lower and higher tiers of the percentage breakdowns, but it surely creates more poverty, more inequality, more unemployment and more delinquency.

Or just look at the insane and totally unfounded IMF prediction of 1 million percent inflation of the Venezuelan new currency in 2018 and 2019?  What are they talking about? No substantiation whatsoever. The same with the prediction of dire consequences from reduced trade, when trade as we know it, has and is serving almost exclusively the corporate world of rich industrialized countries, leaving poorer developing countries behind with a burden of unfair deals and often a resulting debt trap.

Such manipulations of truth coming out of international financial and trade organizations, especially the IMF and the WB, are so flagrantly and scrupulously wrong that they cannot be backed with a shred of professionalism, yet they get away with it because of their apparent unfailable reputation, scaremongering government into doing what is against their and their peoples’ best interest, namely, caring for their own local, sovereign economy, without any foreign interference.

Time and again it has been proven that countries that need and want to recover from economic fallouts do best by concentrating on and promoting their own internal socioeconomic capacities, with as little as possible outside interference. One of the most prominent cases in point is China. After China emerged on 1 October 1949 from centuries of western colonization and oppression by Chairman Mao’s creation of the People’s Republic of China (PRC), Mao and the Chinese Communist party first had to put a devastated ‘house in order’, a country ruined by disease, lack of education, suffering from hopeless famine as a result of shameless exploitation by western colons. In order to do that China remained practically closed to the outside world until about the mid- 1980’s. Only then, when China had overcome the rampant diseases and famine, built a countrywide education system and became a net exporter of grains and other agricultural products, China, by now totally self-sufficient, gradually opened its borders for international investments and trade.  And look where China is today. Only 30 years later, China has not only become the world’s number one economy, but also a world super power that can no longer be overrun by western imperialism.

But you don’t need to look that far. North Dakota saved herself from the 2008 “crisis”, by using public banking addressing the ND State’s economic needs – not the shareholder’s greed – and planning production and service activities that guaranteed basically full employment, while the rest of the country’s unemployment skyrocketed. The State’s economy grew by close to 3% in 2008 and 2009, and is still today the State with the fastest growth rate in the country and with the lowest unemployment rate. This is mostly due to a state economic development policy that concentrates on local capacities and that banks on public banking. Today, North Dakota has still the only public bank in the country; but other States, like New Jersey, New Mexico, Arizona and others, as well as the city of Los Angeles are at the brink of creating pubic banking. The mainstream media, however, doesn’t propagate such examples, as they are not in the interest of the banking and corporate oligarchs.

Local economy with local investments for the benefit of the local population, is, of course, not what the ultra-capitalist system wants. It doesn’t fit the neoliberal economic doctrine – driving globalization forward, pushing its bitter medicine of austerity down poor governments throats, so to further exploit their people, creating more poverty, milking their social systems and steeling their natural resources.

Enough! Wake up! Whatever you may think of President Trump – and he is certainly no panacea for world peace and his abject policy of interference in foreign lands and fueling conflicts and wars in the Middle East and around the globe must be condemned – but his protectionist policies, the “tariff wars” are a welcome sword into the belly of globalization, of the very neoliberal doctrine that has for the last thirty years brought more misery to 99.99% of the planet’s population than any other economic doctrine since Adam Smith. Trump may or may not know what he is doing, but certainly his handlers and advisers, hidden or overt, know the purpose of their newly professed turn of international policy.

Its intention is to cut the political cohesion created by globalization, to divide again for the empire to conquer. Yes. The intention is not to promote local economies, per se, but rather to get countries ready for unguarded bilateral negotiations and agreements between Washington and the developing world, under which the latter have no protection, and with their mostly corrupt leaders, they buckle under facing the harsh conditions of the empire. So, the purpose is not to help, say, the Latin American US backyard to become sovereign again, to the contrary, with imposed bilateral deals – see Brazil, Argentina, Chile, Ecuador, Peru, Colombia – they are slated to become increasingly vulnerable to and dependent on the US and US-dollar hegemony.

The point is for self-conscious and alert governments with the desire to return to their sovereign national politics, this is a crucial moment of truth to take advantage of. The ship is turning. It is the moment to jump off the globalized bandwagon, the globalized trade, the open borders for indiscriminate foreign investments; it is time to sit down and reflect and return to autonomous local policies: local economies, for local markets, with local money and local public banking for the benefit of the local economy. Trade, of course, is part of a local economy; but trade should best be kept within the realm of friendly neighbors and nations that have similar interests and similar political convictions. Trade under de-globalized circumstances should and will return equal benefits for partners, a win-win situation for all trading partners – as it should be according to the original interpretation of trade. By contrast, modern trade as we know it has almost consistently benefited the rich countries to the detriment of the poorer ones.

A good example for fair and equal trade may be ALBA (Alianza Bolivariana para los Pueblos de Nuestra América) – an association of 11 Latin American and Caribbean countries (Antigua and Barbuda Bolivia, Cuba, Dominica, Grenada, Nicaragua, Saint Kitts and Nevis, Saint Lucia, Saint Vincent, Surinam, the Grenadines and Venezuela), initiated and created by Venezuela and Cuba. ALBA may be an excellent illustration on how trade should work between countries or groups of countries. Most people have never heard of ALBA, for the simple reason the international media are typically silent about it, because the neoliberal elite doesn’t want a case of equality to become an example for others to follow. There exist currently other similar, even lesser known cases of fair and equal trade throughout the world, that are equally silenced by the media.

Promoting fair and equal trade is not an agenda item of WTO, nor of the IMF or the World Bank. Their role is just the contrary, being facilitators for the west to further exploit the people of the South and to further deplete the workers’ accumulated funds of their social safety-net that are still available in many western industrialized countries, especially in the western EU. It’s the bedrock of social safety that can be privatized and sucked empty by the international corporate banking system, along with privatization of social infrastructure, such as water supply and sanitation, electricity, hospitals, airports, railways – and much more. All what has the air of profitability can and must be privatized under neoliberal economic doctrines.

Countries, nations and societies, beware from listening and adhering to and working with these nefarious globalizing organizations – IMF, WTO and WB. They are mere servants of western corporatism and debt enslaving financial systems driven by the US Federal Reserves (FED), as well as Wall Street and their European banking partners.

This is an appeal to all countries that are proud of regaining their political sovereignty and economic autonomy, to ignore scaremongering and fear imposing threats by the IMF, the World Bank and WTO. They are not representing the truth, but their nasty role is to belie reality in favor of manipulative invented statistics that are expected to being believed because they stem from these so-called well-reputed institutions. Again, the best example of the IMF’s nonsensical statements is their repeated denigration of Venezuela, accusing the country of fostering an economy that creates a one million percent inflation in 2018 and even higher, they say, in 2019. Can you imagine? That says it all. Be aware – their words, whether spoken in Bali, Washington or Geneva, are nothing more than fear- and threat mongering hot air.

A Global People’s Bailout for the Coming Crash

When the global financial crisis resurfaces, we the people will have to fill the vacuum in political leadership. It will call for a monumental mobilisation of citizens from below, focused on a single and unifying demand for a people’s bailout across the world.

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A full decade since the great crash of 2008, many progressive thinkers have recently reflected on the consequences of that fateful day when the investment bank Lehman Brothers collapsed, foreshadowing the worst international financial crisis of the post-war period. What seems obvious to everyone is that lessons have not been learnt, the financial sector is now larger and more dominant than ever, and an even greater crisis is set to happen anytime soon. But the real question is when it strikes, what are the chances of achieving a bailout for ordinary people and the planet this time?

In the aftermath of the last global financial meltdown, there was a constant stream of analysis about its proximate causes. This centred on the bursting of the US housing bubble, fuelled in large part by reckless sub-prime lending and an under-regulated shadow banking system. Media commentaries fixated on the implosion of collateralised debt obligations, credit default swaps and other financial innovations—all evidence of the speculative greed and lax government oversight which led to the housing and credit booms.

The term ‘financialisation’ has become a buzzword to explain the factors which precipitated these events, referring to the vastly expanded role of financial markets in the operation of domestic and global economies. It is not only about the growth of big banks and hedge funds, but the radical transformation of our entire society that has taken place as a result of the increasing dominance of the financial sector with its short-termist, profitmaking logic.

The origins of the problem are rooted in the early 1970s, when the US government decided to end the fixed convertibility of dollars into gold, formally ending the Bretton Woods monetary system. It marked the beginning of a new regime of floating exchange rates, free trade in goods and the free movement of capital across borders. The sweeping reforms brought in under the Thatcher and Reagan governments accelerated a wave of deregulation and privatisation, with minimum protective barriers against the ‘self-regulating market’.

The agenda was pushed aggressively by most national governments in the Global North, while being imposed on many Southern countries through the International Monetary Fund and World Bank’s infamous ‘structural adjustment programmes’. A legion of books have examined the disastrous consequences of this market-led approach to monetary and fiscal policy, derisorily labelled the neoliberal Washington Consensus. As governments increasingly focused on maintaining low inflation and removing regulations on capital and corporations, the world of finance boomed—and the foundations were laid for a dramatic dénouement in 2008.

Missed opportunities

What’s extraordinary to recall about the immediate aftermath of the great crash is the temporary reversal of those policies that had dominated the previous two decades. At the G20 summit in April 2009 hosted by British Prime Minister Gordon Brown, heads of state envisaged a return to Keynesian macroeconomic prescriptions, including a large-scale fiscal stimulus in both developed and developing countries. It appeared that the Washington Consensus had suddenly lost all legitimacy. The liberalised global financial system had clearly failed to provide for a net transfer of resources to the developing world, or prevent instability and recurrent crisis without effective state regulation and democratic public oversight.

Many civil society organisations saw the moment to call for fundamental reform of the Bretton Woods institutions, as well as a complete rethink of the role of the state in the economy. There was even talk of negotiating a new Bretton Woods agreement that re-regulates international capital flows, and supports policy diversity and multilateralism as a core principle (in direct contrast to the IMF’s discredited approach).

The United Nations played a staunch role in upholding such demands, particularly through a commission set up by the then-President of the UN General Assembly, Miguel d’Escoto Brockmann. Led by Nobel laureate Joseph Stiglitz, the ‘UN Conference on the World Financial and Economic Crisis and its Impact on Development’ proposed a number of sensible measures to protect the least privileged citizens from the effects of the crisis, while giving developing countries greater influence in reforming the global economy.

Around the same time, the UN Secretary-General endorsed a Global Green New Deal that could stimulate an economic recovery, combat poverty and avert dangerous climate change simultaneously. It envisioned a massive programme of direct public investments and other internationally-coordinated interventions, arguing that the time had come to transform the global economy for the greater benefit of people everywhere, including the millions living in poverty in developing and emerging industrial economies.

This wasn’t the first time that nations were called upon to enact a full-scale reordering of global priorities in response to financial turmoil. At the onset of the ‘third world’ debt crisis in 1980, an Independent Commission on International Development Issues convened by the former West German Chancellor, Willy Brandt, also proposed far-reaching emergency measures to reform the global economic system and effectively bail out the world’s poor.

Yet the Brandt Commission proposals were widely ignored by Western governments at the time, which marked the rise of the neoliberal counterrevolution in macroeconomic policy—and all the conditions that led to financial breakdown three decades later. Then once again, governments responded in precisely the opposite direction for bringing about a sustainable economic recovery based on principles of equity, justice, sharing and human rights.

A world falling apart

We are all familiar with the course of action taken from 2008-9: colossal bank bailouts enacted (without public consultation) that favoured creditors, not debtors, despite using taxpayer money. Quantitative easing (QE) programmes that have pumped trillions of dollars into the global financial system, unleashing a fresh wave of speculative investment and further widening income and wealth gaps. And the perceived blame for the crisis deflected towards excessive public spending, leading to fiscal austerity measures being rolled out across most countries—a ‘decade of adjustment’ that is projected to affect nearly 80 percent of the global population by 2020.

To be sure, the ensuing policy responses across Europe were often compared to structural adjustment programmes imposed on developing countries in the 1980s and 1990s, when repayments to creditors of commercial banks similarly took precedence over measures to ensure social and economic recovery. The same pattern has repeated in every crisis-hit region, where the poorest in society pay the price through extreme austerity and the privatisation of public assets and services, despite being the least to blame for causing the crisis in the first place.

After ten years of these policies a new billionaire is created every second day, banks are still paying out billions of dollars in bonuses each year, and the top 1% of the world population are far wealthier than before the crisis happened. At the same time, global income inequality has returned to 1820 levels, and indicators suggest progress is now reversing on the prevention of extreme poverty and multiple forms of malnutrition.

Indeed the United Nations continues to face the worst humanitarian situation since the second world war, in large part due to conflict-driven crises that are rooted in the economic fallout of the 2008 crash—most dramatically in Syria, Libya, and Yemen. Countries of both the Global North and South remain in the grip of a record upsurge of forced human displacement, to which governments are predictably failing to respond to in the direction of cooperative burden sharing through agreements and institutions at the international level.

Not to mention the rise of fascism and divisive populism that is escalating in almost every society, often as a misguided response to pervasive inequality and a widespread sense of unfairness among ordinary workers. It is surely reasonable to suggest that all these trends would not be deteriorating if the community of nations had seized the opportunity a decade ago, and acted in accordance with calls for a just transition to a more equitable world order.

The worst is yet to come

We now live in a strange era of political limbo. Neoclassical economics may have failed to predict the great crash or provide answers for a sustained recovery, yet it still retains its hold on conventional academic thought. Neoliberalism may also be discredited as the dominant political and economic paradigm, yet mainstream institutions like the IMF and OECD still embrace the fundamentals of free market orthodoxy and countenance no meaningful alternative. Consequently, the new regulatory initiatives agreed at the global level are largely voluntary and inadequate, and governments have done little to counter the power of oligopolistic banks or prevent reckless speculative behaviour.

Banks may be relatively safer and possess a bigger crisis toolkit, but the risk has moved to the largely unregulated shadow banking system which has massively increased in size, growing from $28 trillion in 2010 to $45 trillion in 2018. Even major banks like JP Morgan are forewarning an imminent crisis, which may be caused by a digital ‘flash crash’ in which high frequency investments (measuring trades in millionths of a second) lead to a sudden downfall of global stock markets.

Another probable cause is the precipitous rise in global debt, which has soared from $142 to $250 trillion since 2008, three times the combined income of every nation. Global markets are running on easy money and credit, leading to a debt build-up which economists from across the political spectrum agree cannot last indefinitely without catastrophic results. The problem is most acute in emerging and developing economies, where short-term capital flowed in response to low interest rates and QE policies in the West. As the US and other rich countries begin to steadily raise interest rates again, there is a risk of a mass exodus of capital from emerging markets that could trigger a renewed debt crisis in the world’s poorest countries.

Of most concern is China, however, whose credit-fuelled expansion in the post-crash years has led to massive over-investment and national debt. With an overheating real-estate sector, volatile stock market and uncontrolled shadow banking system, it is a prime candidate to be the site for the next financial implosion.

However it originates, all the evidence suggests that an economic collapse could be far worse this time around. The ‘too-big-to-fail’ problem remains critical, with the biggest US banks owning more deposits, assets and cash than ever before. And with interest rates at historic lows for many G-10 central banks while the QE taps are still turned on, both developed and developing countries have less policy and fiscal space to respond to another shock.

Above all, China and the US are not in a position to take the same decisive central bank action that helped avert a world depression in 2008. And then there are all the contemporary political factors that mitigate against a coordinated international response—the retreat from multilateralism, the disintegration of established geopolitical structures and relationships, the fragmentation and polarisation of political systems throughout the world.

After two years of a US presidency that recklessly scraps global agreements and instigates trade wars, it is hard to imagine a repeat of the G20 gathering in 2009 when assembled leaders pledged never to go down the road of protectionist tariff policies again, fearing a return to the dire economic conditions that led to a world war in the 1930s. The domestic policies of the Trump administration are also especially perturbing, considering its current push for greater deregulation of the financial sector—rolling back the Dodd-Frank and consumer protection acts, increasing the speed of the revolving door between Wall Street and Washington, D.C., and more.

Mobilising from below

None of this is a reason to despair or lose hope. The great crash has opened up a new awareness and energy for a better society that brings finance under popular control, as a servant to the public and no longer its master. Many different movements and campaigns have sprung up in the post-crash years that focus on addressing the problems wrought by financialisation, which more and more people realise is the underlying source of most of the world’s interlinking crises. All of these developments are hugely important, although the true test of this rising political consciousness will come when the next crash happens.

After the worldwide bank bailouts of 2008-9—estimated in excess of $29 trillion by the US Federal Reserve alone—it is no longer possible to argue that governments cannot afford to provide for the basic necessities of everyone. Just a fraction of that sum would be enough to end income poverty for the 10% of the global population who live on less than $1.90 a day. Not to mention the trillions of dollars, euros, pounds and yen that have been directly pumped into financial markets by central banks of the major developed economies, constituting a regressive form of distribution in favour of the already wealthy that could have been converted into some form of ‘quantitative easing for the people’.

A reversal of government priorities on this scale is clearly not going to be led by the political class. They have already missed the opportunity, and are largely beholden to vested interests that are unduly concerned with short-term profit maximisation, not the rebuilding of the public realm or the universal provision of essential goods and services. The great crash and its aftermath was a global phenomenon that called for a cooperative global response, yet the necessary vision from within the ranks of our governments was woefully lacking. If the financial crisis resurfaces in a different and severer manifestation, we the people will have to fill the vacuum in political leadership. It will call for a monumental mobilisation of citizens from below, focused on a single and unifying demand for a people’s bailout across the world.

Much inspiration can be drawn from the popular uprisings throughout 2011 and 2012, although the Arab Spring and Occupy movements were unable to sustain the momentum for change without a clear agenda that is truly international in scope, and attentive to the needs of the world’s majority poor. That is why we should coalesce our voices around Article 25 of the Universal Declaration of Human Rights, which proclaims the right of everyone to the minimal requirements for a dignified life—adequate food, housing, medical care, access to social services and financial security.

Through ceaseless demonstrations in all countries that continue day and night, a united call for implementing Article 25 worldwide may finally impel governments to cooperate at the highest level, and rewrite the rules of the international economic system on the basis of shared mutual interests. In the wake of a breakdown of the entire international financial and economic order, such a grassroots mobilisation of numberless people may be the last chance we have of resurrecting long-forgotten proposals in the UN archives, as notably embodied in the aforementioned Brandt Report or Stiglitz Commission.

The case of Iceland is widely remembered as an example of how a people’s bailout can be achieved, following the ‘Pots and Pans Revolution’ that swept the country in 2009—the largest protests in the country’s history to date. As a result of the public’s demands, a new coalition government was able to buck all trends by avoiding austerity measures, actively intervening in capital markets and strengthening social programs for the less privileged. The results were remarkable for Iceland’s economic recovery, which was achieved without forcing society as a whole to pay for the blunders of corrupt banks. But it still wasn’t enough to prevent the old establishment political parties from eventually returning to power, and resuming their support for the same neoliberal policies that generated the crisis.

So what must happen if another systemic banking collapse occurs of even greater magnitude, not only in Iceland but in every country of the world? That is the moment when we’ll need a global Pots and Pans Revolution that is replicated by citizens of all nationalities and political persuasions, on and on until the entire planet is engulfed in a wave of peaceful demonstrations with a common cause. It will require a huge resurgence of the goodwill and staying power that once animated Occupy encampments, although this time focused on a more inclusive and universal demand for implementing Article 25 and sharing the world’s resources.

It may seem far-fetched to presume such an unprecedented awakening of a disillusioned populace, as if we can expect a visionary leader of Christ-like stature to point out the path towards resurrecting the UN’s founding ideals of “better standards of life for everyone in the world”. Unfortunately, nothing less may suffice in this age of economic chaos and confusion, so let us all be prepared for the climactic events about to take place.

“Living above our means”: Macri, the IMF, and Other Victims of Austerity

Argentinian president Mauricio Macri speaking on September 3rd, 2018 (Youtube screenshot).

After a hectic weekend with speculation aplenty, Argentina woke up on September 3rd waiting for the announcements of president Mauricio Macri. After accomplishing the feat of being late in delivering a recorded video, the message of more than 20 minutes was finally broadcast, with Macri announcing new austerity measures to try and get an earlier disbursement of the funds contemplated in the agreement with the IMF that was signed in May.

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Argentina’s current context is one of economic contraction, inflation, an increase in interest rates and a strong devaluation of the currency, which has lost 50% of its value with respect to the US dollar so far in 2018. For all these woes the Argentinian president found the solution in resorting to the IMF. But he did manage to find a multitude of parties responsible for the current situation: the rise of oil prices, drought, the commercial “war” between the United States and China, troubles in Turkey and Brazil, and above all the corruption and bad policies of previous governments.

But while the Argentinian president did his best to assign blame to his enemies, near and far, the explanation for the crisis – the failure of neoliberalism – was right in the middle of the screen, since nobody embodies noeliberalism better than Mauricio Macri himself.

Finance minister Nicolás Dujovne later presented more details of the measures that the government wishes to implement, before departing to meet the IMF in order to secure an early release of funds. These measures include a tax on exports and a promise to reduce the 2019 deficit to 0. In the agreement with the IMF the goal was 1.3%, so this reduction will hinge on bigger cuts to public spending and hikes in energy and transportation prices.

It should be stressed that these measures do not represent a shift, but rather a doubling-down on the policies that have been implemented since the Cambiemos coalition took power. The past two years have seen brutal increases in electricity and gas prices, a pension reform, massive layoffs in the public sector, major cuts in areas such as science, education or healthcare, attacks against labour rights, etc., with disastrous consequences for the population.

The Argentinian government, who was represented by Dujovne in the US, hopes that this latest round of sacrifices to the almighty markets will slow down the currency devaluation and secure the blessing of the high priests of the IMF and Wall Street. Nevertheless, prophecies about market uncertainties do have a tendency to self-fulfil. Not only that, the Argentinian executive, now slashed in less than half, is a team of businessmen that will know which interests to protect when push comes to shove.1

Macri and Dujovne meeting with IMF Managing Director Christine Lagarde on March 16, 2018 (Photo: Casa Rosada)

Discursive platitudes

Macri’s speech was littered with elements that would have sounded extremely familiar to anyone who followed the austerity programmes that were implemented since 2010 in countries like Portugal or Greece. When the Argentinian president said that “we have been living above our means”, any Portuguese person could have recalled listening to their own president in 2011 – Cavaco Silva – say exactly the same thing.

Along the same lines, this was also the verdict reached by the Greek prime minister – Georgios Papandreou – who signed the first bailout agreement, and the all-powerful German finance minister – Wolfgang Schäuble – has always harped on this string to justify the austerity imposed on Greece. In truth the sanctimonious discourse of “living within our means” is no modern invention, but rather something that has always closely followed the neoliberal doctrine, even going back to Thatcher.

Another common element was the admission, with dishonest concern, that these measures will result in increased poverty. In 2011, the Portuguese prime minister went even further, saying that only by getting poorer would the crisis be overcome. In exchange, there is always a pledge that “the most vulnerable will be looked after”, and that those with more resources will be called upon to make bigger sacrifices, when it is well known that, almost by definition, the purpose is quite the opposite.

The cases of Greece and Portugal

Keeping in mind the distances between the examples we discuss, the similarities in the official discourse demand that we at least examine what took place in Greece and Portugal. In these cases the IMF was not the only creditor institution: it was joined by the European Central Bank and the European Union to form the fearsome “troika”. These were perhaps the most extreme cases of the austerity that was imposed throughout the continent in response to the crisis that broke out in 2008.

Greek GDP contracted by more than 40% since 2008. After the implementation of the memoranda of agreement with the troika, unemployment has consistently topped 20%, and youth unemployment has been around 40%. More than that, 4 out of 10 children are at risk of poverty. These are but a few indicators, among many others, that showcase the devastation that was unleashed upon the Greek people, while billions of euros of bailout money ended up directly in the hands of foreign banks.

As for the stated goal of the austerity packages, Greek public debt grew from 146% of GDP at the time of the first “structural reform” programme (2010) to 180% of GDP in 2018. Although officially Greece has exited the bailout programmes, the debt remains absolutely unpayable, and the idea that Greece can go on for decades balancing budgets under this weight is an illusion.

The Portuguese case is slightly less tragic. The 2015 elections resulted in a defeat for the right-wing coalition – which had implemented the deal signed with the troika in 2011 – and the emergence of a new government solution, which from afar might seem like it is on the left. The new government put an end to austerity and managed to revert the economic tendency and register economic growth once more.

The mere action of putting an end to austerity, while slowly reverting salaries and pensions to their 2011 levels, was a demonstration that the path of harsh budget cuts and tax increases was not the only choice. However, Portuguese public debt remains unpayable and an obstacle, among others, which will have to be confronted sooner or later.

Carlos Latuff depicts austerity in Greece

Where austerity leads to

This small transatlantic detour is useful to illustrate that, despite some declaring them as successful, the bailout plans did not manage to bring debt under control in Europe’s peripheral countries. But that goal, as well as the sacred budgetary targets, are simply argumentative artefacts.

Austerity packages, which are often more eloquently branded as “structural reforms”, are nothing but mechanisms to transfer wealth from labour to capital, with an underlying logic that profits are private and losses are socialised. When salaries and pensions are cut, when healthcare and education budgets are shrunk, when public services are dismantled, when thousands of workers are laid off, in order to pay back creditors, the people are being sacrificed to safeguard the interests of a handful of shareholders, be they national or foreign.

This transfer of wealth also occurs under the form of privatisations. These can be blatant or hidden under the pretext of the inefficiency of public management, but bailouts and structural adjustment plans have always been tremendous opportunities for capitalists. In the Greek case, important state assets, such as airports or the port of Piraeus, one of the biggest in the Mediterranean, ended up in private hands.

In truth, the Macri government has already made its position quite clear on the issue of privatizations; for example, in the energy sector, where the state is looking to sell its stake in several projects. In addition, the Argentinian company that produced satellites, ARSAT, was sold to an American company. The agreement with the IMF, and especially the version on steroids that will allow for an early release of funds, is sure to bring a new wave of privatisations, much to the delight of investors, and reviving ghosts of a not-so-distant past in Argentina.2

But it is not just through privatisation that room is opened up for private companies, especially multinational corporations, to flourish. The mere reduction of the reach of the state and public services leaves an open space to be filled by the whims of the market. In this context, the suppression of the health ministry, now reduced to a secretariat in the new ministry for health and social development, is quite symbolic. That this happened at a time when the implementation of the Universal Healthcare Coverage (CUS), a programme with a mercantile view of healthcare, is being discussed, is not a good omen for public healthcare in Argentina.

At this point we should go back to the issue of “living within our means”. The evolution of capitalism, even in times of crisis, has seen an ever growing concentration of wealth. It is estimated that 8 men own about as much wealth as the poorest half of the planet’s population. Therefore there are people living above what should be their means. But these are not pensioners, or public workers, or trade unionists, etc., as some would have us believe.

Resistance and repression

The Cambiemos government offensive, which will be intensified in the coming months, has been met with resistance from the Argentinian people in the streets. For example, a faculty strike in the university system, in protest against cutbacks in higher education and reforms in the pension system, was joined in August by a strong student mobilization in support, with several universities throughout the country temporarily occupied.

Trade unions, contradictions notwithstanding, also look to resist, and have called a general strike which is taking place on September 24-25. And perhaps there has been nothing more surprising and inspiring than the mobilisation of several hundred thousand people to defend the legalisation of abortion. Despite the goal not having been achieved for now, the awakening of consciences and the scale of the street mobilisations are building blocks for the upcoming struggles. The challenge is to turn all these struggles into attractor poles of a single, unified battle front.

Demonstration in Buenos Aires during a National Day of Protest, September 12 (Photo: Resumen Latinoamericano)

While it is fair to say that the rapid development of the crisis has caught the Argentinian government by surprise, the fact is that preparations to contain and repress any resistance to austerity had long been on the march. The decree which allows the armed forces to intervene in internal security matters, something which had not happened since end of the dictatorship, is particularly significant, not to mention the installation of US military bases in Argentinian territory.

The government and its talking heads have put forward a fallacious argument; namely, that with a tremendous sense of duty, those in charge are doing what needs to be done with no concern for upcoming elections. In reality what they are doing is ensuring that the interests of capitalists are shielded for decades, way beyond next year’s elections. It is the purest defence of class interests. Because at the end of the day power is not confined to the presidential palace or to legislative chambers.

An important difference with respect to cases such as Portugal or Greece is that in Argentina, thanks to the hegemony of media conglomerates such as the Clarín group, a scapegoat to which attention can be diverted has been put in place. This is the (alleged) corruption of Cristina Fernández de Kirchner and members of her government, which is presented as the root of all evils that befall Argentina. Similarly to what has happened in cases such as Lula’s in Brazil, the goal is to have the trial in the media for short-term political gain.3

The cases of Portugal and Greece, alongside many other recent examples of “rescue plans”, give an idea of what is to come. Under the excuse of “having lived above our means”, different mechanisms to transfer wealth to capital, brazen or hidden, will be implemented. And faced with the difficulty of meeting unrealistic budgetary targets that are imposed from the outside there will be no solution other than imposing more and more sacrifices on the majority of the people.

After its failure and exhaustion as a political project, neoliberalism resurfaced in Latin America essentially leaning on the media and on the (politicisation of the) judicial system. It now looks to contain any alternative, in the case of Argentina, by mortgaging the country’s future and reactivating repression mechanisms. All of this places Argentina in the front line of a battle that is not just about next year’s presidential elections. The task ahead is to resist, every day and in every way, against this renewed offensive, and at the same time to construct a true, and radical, alternative.

• Thanks to Luciana Daffra for her comments and corrections.

• First published in Investig’Action

  1. On September 17 Dujovne presented the 2019 budget before the Argentinian Congress. It is, in his words, an “austere budget”, with a 7% cut on public spending, a prediction of economic contraction of 2.4%, and a zero deficit goal.
  2. It is worth recalling that this is no pure ideological matter for Macri, since the Macri Group is one of the largest business conglomerates in Argentina, with activities over a range of sectors, and having directly benefited from privatisation of state assets in the past.
  3. Our goal is not to vouch for anyone’s innocence, rather to point out the clear manipulation of justice for political ends and the double standards (or lack of standards) of the media. In Argentina, for example, a large circus has been set up surrounding the famous “notebooks” which detail the corruption of a former official during the Kirchner governments. The notebooks came from a remorseful driver, but up until now only photocopies of the smoking gun have been presented. In exchange, Macri featuring in the Panama Papers did not seem to merit the same level of scrutiny from the media, and the same can be said about the “fake contributions” and money laundering in the campaign of Maria Eugenia Vidal, governor of the province of Buenos Aires and one of the main figures of Cambiemos.

Our Broken System has no “Moderate” Devotees

Western politics is tearing itself apart, polarising into two camps – or at least, it is in the official narrative we are being fed by our corporate media. The warring camps are presented as “moderate centrists”, on one side, and the “extreme right”, on the other. The question is framed as a choice about where one stands in relation to this fundamental political divide. But what if none of this is true? What if this isn’t a feud between two opposed ideological camps but rather two differing – and irrational – reactions to the breakdown of late-stage capitalism as an economic model, a system that can no longer offer plausible solutions to the problems of our age?

Neighbouring news headlines this week offered a neat illustration of the media’s framing of the current situation. Representing the “moderates”, German chancellor Angela Merkel made a “passionate address” in which she denounced the outbreak of far-right protests in east Germany and reports of the “hunting down” of “foreigners” – asylum seekers and immigrants.

She observed:

There is no excuse or explanation for rabble-rousing, in some cases the use of violence, Nazi slogans, hostility towards people who look different, to the owner of a Jewish restaurant, attacking police.

Ostensibly pitted against Merkel is Viktor Orban, Hungary’s “extreme right” prime minister. Hungary risks being stripped of its voting rights in the European Union because of Orban’s “rabble-rousing” policies and his anti-migrant agenda.

Shortly before the European parliament voted against Hungary, accusing its government of posing a “systematic threat” to democracy and the rule of law, Orban argued that his country was being targeted for preferring not to be “a country of migrants”.

He is far from an outlier. Several other EU states, from Italy to Poland, are close behind Orban in pursuing populist, anti-immigrant agendas.

Family feud

But does this civil war in Europe really reflect a divide between good and bad politics, between moderates and extremists? Are we not witnessing something else: the internal contradictions brought to the fore by a turbo-charged neoliberalism that is now so ideologically entrenched that no one dares question its suitability, let alone its morality?

In truth, the row between Merkel and Orban is a family feud, between sister and brother wedded to the same self-destructive ideology but in profound disagreement about which placebo should be administered to make them feel better.

What do I mean?

Merkel and the mainstream neoliberal elite are committed to an ever-more deregulated world because that is imperative for a globalised economic elite searching to accrue ever more wealth and power. That elite needs open borders and a lack of significant regulation so that it can plunder unrestricted the Earth’s resources – human and material – while dumping the toxic waste byproducts wherever is most profitable and convenient.

In practice, that means creating maximum damage in places and against life-forms that have the least capacity to defend themselves: the poorest countries, the animal kingdom, the forests and oceans, the weather system – and, of course, against future generations that have no voice. There is a reason why the deepest seabeds are now awash with our plastic debris, poisoning and killing marine life for decades, maybe centuries, to come.

Interestingly, this global elite makes a few exceptions to its policy of entirely open borders and sweeping deregulation. Through its pawns in the world’s leading capitals – the people we mistakenly think of as our political representatives – it has created small islands of opacity in which it can stash away its wealth. These “offshore tax havens” are highly regulated so we cannot see what goes on inside them. While the elite wants borders erased and the free movement of workers to set one against the other, the borders of these offshore “safe deposit boxes” are stringently preserved to protect the elite’s wealth.

International order

Meanwhile, the global elite has created international or trans-national structures and institutions precisely to remove the power of nation-states to regulate and dominate the business environment. The political class in the United States, France, Britain, Germany, Mexico or Brazil do not control the corporations. These corporations control even the biggest states. The banks are too big to fail, the arms manufacturers too committed to permanent war to rein in, the largely uniform narratives of the corporate media too powerful to dissent from.

Instead, global or trans-national institutions, such as the World Bank, the International Monetary, the European Union, NATO, BRICS and many others, remake our world to promote the globalised profits of the corporations.

The United Nations – a rival international project – is more problematic. It was created immediately after the Second World War with the aim of imposing a law-based international order, premised on respect for human rights, to prevent future large-scale wars and genocide. In practice, however, it chiefly serves the interests of the dominant western states through their capture of the Security Council, effectively the UN’s executive.

A few UN institutions – those in charge of human rights and prosecuting war crimes – that have the potential to restrain the power of the global elite find themselves ever more marginalised and undermined. Both the UN Human Rights Council and the International Criminal Court have been under sustained assault from US officials, both before and after Donald Trump became president.

Towards the abyss

The internal contradictions of this globalised system – between the unfettered enrichment of the elite and the endless resource depletion of the Earth and its weakest inhabitants – are becoming ever more apparent. Historically, the toxic waste from this system was inflicted on the poorest regions first, like puddles forming in depressions in the ground during a rainstorm.

As the planet has warmed, crops have failed, the poor have gone hungry, wars have broken out. All of this has been an entirely predictable outcome of the current economics of endless, carbon-based growth, coupled with resource theft. But unlike puddles, the human collateral damage of this economic system can get up and move elsewhere. We have seen massive population displacements caused by famines and wars, especially in the Middle East and North Africa. These migrations are not about to stop. They are going to intensify as neoliberalism hurtles us towards the economic and climate abyss.

The political class in the west are now experiencing profound cognitive dissonance. Merkel and the “moderates” want endless growth and a world without borders that is bringing gradual ruination on their economies and their privileges. They have no answers for the “extremists” on the right, who acknowledge this ruination and say something needs to be done urgently about it.

Orban and the far-right want to fiercely resurrect the borders that globalisation erased, to build barriers that will stop the puddles merging and inundating their higher ground. This is why the right is resurgent. They, far more than the moderates, can describe our current predicament – even if they offer solutions that are positively harmful. They want solid walls, national sovereignty, blocks on immigrants, as well as racism and violence against the “foreigners” already inside their borders.

The system is broken

We have to stop thinking of these political debates as between the good “moderates” and the nasty “extreme right”. This is a fundamental misconception.

The deluded “moderates” want to continue with a highly unsustainable form of capitalism premised on an impossible endless growth. It should be obvious that a planet with finite resources cannot sustain infinite growth, and that the toxic waste of our ever-greater consumption will poison the well we all depend on.

The west’s deluded far-right, on the other hand, believe that they can stand guard and protect their small pile of privilege against the rising tide of migrants and warming oceans caused by western policies of resource theft, labour exploitation and climate destruction. The far-right’s views are no more grounded in reality than King Canute’s.

Both sides are failing to grasp the central problem: that the western-imposed global economic system is broken. It is gradually being destroyed from within by its own contradictions. The “moderates” are doubly blind: they refuse to acknowledge either the symptoms or the cause of the disease. The “extremists” are as oblivious to the causes of the illness besetting their societies as the “moderates”, but they do at least recognise the symptoms as a sign of malaise, even if their solutions are entirely self-serving.

Squaring the circle

This can be seen in stark fashion in the deep divide over Britain’s decision to leave the European Union, so-called Brexit, which has cut across the usual left-right agendas.

The Remain crowd, who want to stay in Europe, believe Britain’s future lies in upholding the failed status quo: of a turbo-charged neoliberalism, of diminishing borders and the free movement of labour, of distant, faceless technocrats making decisions in their name.

Like a child pulling up the blanket to her chin in the hope it will protect her from the monsters lurking in the darkness of the bedroom, the “moderates” assume European bureaucrats will protect them from economic collapse and climate breakdown. The reality, however, is that the EU is one of the trans-national institutions whose chief rationale is accelerating our rush to the abyss.

Meanwhile, the Brexit crowd think that, once out of the EU, a small island adrift in a globalised world will be able to reclaim its sovereignty and greatness. They too are going to find reality a terrifying disappointment. Alone, Britain will not be stronger. It will simply be easier prey for the US-headquartered global elite. Britain will be jumping out of the EU frying pan into the flames of the Atlanticists’ stove.

What is needed is not the “moderates” or the “extreme right”, not Brexit or Remain, but an entirely new kind of politics, which is prepared to shift the paradigm.

The new paradigm must accept that we live in a world that requires global solutions and regulations to prevent climate breakdown. But it must also understand that people are rightly distrustful of distant, unaccountable institutions that are easily captured by the most powerful and the most pitiless. People want to feel part of communities they know, to have a degree of control over their lives and decisions, to find common bonds and to work collaboratively from the bottom-up.

The challenge ahead is to discard our current self-destructive illusions and urgently find a way to solve this conundrum – to square the circle.