Category Archives: Japan

Germany, Japan, Iran and Trump: Will Reason and Harmony Triumph in the World?

Japan used to be the number one foreign consumer of Iranian oil, slipping to number two as China increased its purchases. Now, obliged to defer to the U.S., Japan purchases none. Germany has been Iran’s largest European trade partner, and was hoping for major deals following the conclusion of the Iran Deal in 2015. These plans have been sabotaged by the U.S. using its control over the international banking system, one of its main weapons to use against free market principles and free trade, to inflict pain on people who do not submit, and to (try to) assert its global hegemony.

Both Japan and Germany (whom you recall were the U.S. two greatest adversaries in World War II and who emerged soon after the war as close U.S. allies, the third and fourth largest economies, after the U.S. and USSR.  Both not coincidentally were occupied by tens of thousands of U.S. troops from their defeat in 1945, politically controlled by the U.S. and incorporated into its military alliance network, as they remain 74 years later.

(Notice by the way how the Soviets, who defeated the Nazis on the all-important Eastern Front, losing as many as 30 million in that effort, and who occupied what had been Nazi-occupied parts of eastern Europe, withdrew from Finland and Austria while the U.S. consolidated its grip on postwar western Europe, while shaping the emergence of pro-Soviet client states in Poland, Czechoslovakia, Hungary, East Germany (after the U.S. unilaterally declared West Germany an independent state), and Bulgaria. Other ostensibly socialist states (Albania, Yugoslavia, Romania) always retained a high degree of independence vis-à-vis the Soviets. The U.S. meanwhile pronounced the Truman Doctrine (justifying any means necessary to defeat communism, from electoral interference to assassination to coups and wars) and in 1949 created NATO as a ferocious anti-Soviet military alliance. The Soviets responded seven years later with their own much smaller Warsaw Pact alliance that, of course, was dissolved in 1991, when NATO should have been. The U.S. remains tied by expensive military alliances with the now-reunited Germany and Japan, and continues to station more soldiers in those two countries than anywhere else. They are followed by South Korea (part of the Japanese Empire during the Second World War) and Italy, showing that the U.S. is still in a perverse deluded way fighting that war.

Both Japan and Germany—the third and fourth largest economies in the world, whose combined GDPs equal about half the U.S. figure—oppose the Trump administration’s decision to withdraw from, and seek to destroy, the Joint Comprehensive Plan of Action signed with Iran four years ago. They want normal ties with Iran. They fear the real prospect that crazies around the U.S. president—known, rapid war-mongering, fanatically Zionist, pathological liars, bible-toting nutcases, smug psychos and wild-eyed brutes like Jared Kushner, John Bolton and Mike Pompeo—will arrange a war to bring on the apocalypse they so crave.

They are surely indignant that a man as obviously as moronic as Tillerson intimated is ordering them, in their maturity, and their nations, in their dignity, to obey U.S. orders to isolate and provoke Iran. And worried about the possible consequences of Trump’s madness and vulnerability to the arguments of evil advisors. They will surely be trying through flattery and patient argument to promote talks with the Iranians.

Trump says he doesn’t want war. He says he wants to talk, but leaves it to the Iranians to call him, to show their respect. He says he doesn’t want regime change (although Bolton surely does and says so continuously). He says President Rouhani is probably a “lovely man.” He just doesn’t want Iran to have nuclear weapons.

The Germans and Japanese know Trump likes others to come to him. So they will get on the phone and urge Iranian Foreign Minister Zarif to stoke Trump’s ego and call him. And they will say, just repeat what you have many times, guarantee him that Iran does not want and will not build nuclear weapons. Give him a way to back down, like the Mexicans just did. Let him claim a better deal, if that allows trade to get going…

Trump is a profoundly ignorant if not stupid human. He genuinely might not know that U.S. intelligence services have been saying since 2003 that Iran does not have an active nuclear weapons program. The IAEA has ascertained this. The Iranian supreme leader has issued a fatwa banning the production or use of nuclear weapons. The leading western authority on Iran’s nuclear program, Gareth Porter, has exhaustively documented the fact that Iran has never had a serious program to produce nuclear weapons, at least not since the Islamic Revolution.

Anyway, by suggesting that his only demand is that Iran not acquire nukes, Trump allows the Iranians to say, “Fine. We agree. What more assurances do you want?” And then, if his advisors are in the room, Trump will say, actually, we want more than no nukes, we need to you to obey us in all these other areas Pompeo has announced. You have to stop missile tests, and end aid to Hizbollah, Hamas, Iraqi Shiite militias, Houthis and the Syrian government. Only then will we let Japan, Germany and all the countries we indirectly control trade with you.

The German foreign minister Heiko Maas has visited Tehran to meet with his dignified, level-headed counterpart. Japanese Prime Minister Abe Shinzo is heading to Iran Wednesday to attempt to mediate between his U.S. bosses and the Iranian leadership. He is perhaps in a good position to do so. Abe has been Japanese prime minister since 2012—a very long time for a Japanese leader. He is an extremely reactionary figure, proud grandson of an accused war criminal who also served as prime minister (1957-60), advocate of constitutional revision (to legalize the huge Japanese military), promoter of a view of history in which Japan once led Asia in sloughing off colonialism. He has deliberately provoked the Koreas and China by statements, actions and threats involving contested claims over islands. His tax hikes and austerity measures have produced much pain for the Japanese. I have no fondness for the man.

But I would like to suggest what he might, speaking from his own point of view perhaps, say to the Iranian president.

He could begin by pointing out that Japan, as a close U.S. ally due to its post-war fate, must follow its leadership on foreign policy. However, he might add that for years Japan was Iran’s number one oil purchaser nation, before it was overtaken by China. Now it buys no oil from Iran; it is not allowed to, due to U.S. secondary sanctions. But for a time Japan, which has towed the U.S. line on virtually all global matters from the time of the Occupation to the present, did have a strong trade relationship with Iran, receiving special permission from the boss-nation to do so due to its complete dependence on foreign oil. (South Korea received this too.) So there is precedent for Japan playing a slightly independent role.

Moreover, there are reports that in the current situation Abe wants to play less the role of messenger than mediator, which makes sense from the point of view of his nationalist agenda.

Abe could further note that Japan and Iran (Persia) have had a trading relationship (since at least the eighth century CE, actually); have until recently enjoyed scholarly exchanges (such as Japanese archeologists’ work with their Iranian counterparts in exploring likely ancient Buddhist sites); and share a history of avoiding western colonization. Both cultures value etiquette, patience, calm and reason.

Abe and Rouhani no doubt share a common contempt for Trump as an ignorant, rude, unpredictable, dangerous, posturing buffoon. This would be how most world leaders see him. But they also no doubt grasp that his vanity can be used to defuse him. So Abe will say, as friend to friend, why not call him? Say that you are contacting him in response to his public invitation and whatever private communications there have surely been, because you have made statements that suggest you want to ease the “tensions” the U.S. claims have gotten higher recently. These statements include a perhaps facetious statement that you, Rouhani, are a “lovely man;” that he is not calling for regime change in Iran; that he wants to make a deal with the present government; even that he wants Iran to thrive under the present regime. All he wants, he insists, is that Iran not get nuclear weapons.

Call him and call his bluff. Remind him that the Iran Deal virtually prevents Iran from getting nuclear weapons any time soon, and that the IAEA knows that, and the UN knows that, and the signatory nations except for Trump’s know that. Offer him even more iron clad assurances; he won’t know what you’re talking about. Dangle before him the prospect of the Nobel Peace Prize. Let him announce that trust has been achieved and the U.S. now looks forward to investing in Iran, which like North Korea, has awesome prospects.

The current head of the IAEA happens to be a Japanese flunky of the U.S.  (He was elected in July 2009 to succeed the Egyptian, Mohammad ElBaradei, a Nobel Peace Prize laureate in part due to his refusal to bow to U.S. disinformation about Iran’s nuclear program provided by the likes of Bolton. There were six rounds of voting, the U.S. each time opposing the favored South African candidate. Amano was more suitable because a diplomatic cable released by the invaluable Wikileaks indicated that Amano “was solidly in the U.S. court on every key strategic decision, from high-level personnel appointments to the handling of Iran’s alleged nuclear weapons program.”)

The other day as he opened a meeting of the IAEA’s board of governors, Amano stated blandly, “I… hope that ways can be found to reduce current tensions through dialogue.”  In other words, he faults both sides for such “tensions” and is probably saying: “Meet with Trump, President Rouhani, to reduce these tensions!” May the Iranians respond to Trump’s clueless provocations with a mix of calculated taqiyya and principled insistence on established international law, putting the bullying Wizard of Oz in his place, daring him to please Natanyahu, Jared and MbS by provoking war. And may Trump back down, agreeing on some formula allowing him to claim some victory that had eluded Obama.

When will Californians wake up to the Risk to Children from Nuclear Radiation?

On March 7, the Inter Press Service (IPS) published my article, “Eight Years on, Fukushima Still Poses Health Risks for Children,” and I am very gratified to learn that it was the second most popular article published in IPS News that week. It also appears that many readers were surprised to learn that removal of the irradiated cores from the three crippled nuclear reactors at Fukushima would take at least forty years.

This revelation reminds me of my conversation with the late Dr. Hans-Peter Durr, former Director of the Max Plunch Institute of Germany, when the Fukushima accident occurred in March 2011. Hans-Peter called me to say that the Fukushima accident was much worse than the government of Japan and TEPCO were disclosing to the public and suggested that I talk to the Prime Minister of Japan on this urgent matter. When I asked Hans-Peter how long it might take to solve the Fukushima accident, he replied that it will take at least forty years.

It shocked me to realize that the consequences of such a human accident would take so long to resolve. For example, twenty years after the complete destruction of Tokyo City during World War II, Tokyo City hosted the 1964 Olympic Games. In contrast, the huge area impacted from the Chernobyl nuclear accident of 1986 remains desolate 33 years later and will likely remain so for many more decades or even centuries.

World Wars I and II destroyed cities in huge urban areas, yet many of these cities were rebuilt within 20 years. The difference between these catastrophes is due to the fact that while the environmental landscape in cities destroyed by conventional warfare stayed relatively healthy, cities which were impacted by nuclear radiation will remain partly or completely uninhabitable for centuries. Within the “controlled” environment of a nuclear plant facility, spent fuel rods should be kept in a safe place for 100,000 years, and the 250,000 tons of radioactive waste produced worldwide will remain dangerous to all life for thousands of years. I have never thought of such a long time-span which could well extend beyond humanity’s existence on Earth.  This new discovery is what I and many of my readers share.

Based on the following facts related to the Fukushima nuclear accident, I have the following concerns regarding radioactive damage to ocean marine life and related health risks to both the children of Fukushima and/or the West Coast of North America:

  1. It would take at least 40 years (my nuclear scientist colleagues say between 60 to 80 years) to remove the irradiated cores, yet nobody knows the exact location of the irradiated cores, or how to remove them and how long it might take once they are located and a method for removal and containment is determined.
  2. The latest radiation readings by a remote-controlled robot to detect the radioactive level in Reactor 2 was 530 sieverts per hour, the highest since the March 2011 meltdown. Radioactive winds flow toward North America every day and will continue until all radioactivity at Fukushima is contained.
  3. There are approximately 1,000 storage tanks containing 1.1 million tons of high-level radioactive water.  These tanks were built on an emergency basis and are therefore not expected to last 40 years.
  4. There is no space to build additional tanks in the Fukushima area, and sooner or later there will be no choice but to release the contaminated water into the ocean.
  5. And independent assessments indicate that, despite the Japanese government’s best efforts, hundreds of thousands of gallons of irradiated water “leak” out to the Pacific Ocean every day due to the physical impossibility of capturing all the irradiated water in to the referenced storage tanks.
  6. A strong earthquake or the eruption of Mt Fuji are predicted in the near future, and there is considerable uncertainty as to whether the three crippled nuclear reactors would withstand the seismic impacts from such an event. If one or more of the three nuclear reactors collapses, or the respective reactor cores are further impacted by adverse earthquake pressures, an extreme worst-case scenario in addition to the current crisis would be created.

As no scientists would argue with the above facts, I come to my primary concerns:

  1. The cumulative risks from radioactive environmental contamination to young children and women of childbearing age living in the wider Fukushima prefecture and the West Coast of North America continues unabated.
  2. Ongoing radioactive contamination of the sea adjacent to the Fukushima plant results in increased uptake of radionuclides by fish and other sea animals, increasing the risk of long-term seafood contamination to all nations bordering the Pacific Ocean.

Dr. Hiroaki Koide, a well-regarded nuclear scientist and former Professor of Kyoto University, said that Japan originally established the legal limit of permissible radiation as 1 ml Sievert per year for the average person, and 20 ml Sievert per year for nuclear research professionals like him.

However, since the Fukushima nuclear accident, the government of Japan officially announced the Nuclear Emergency Countermeasure Declaration [RP1], which voided the prior law. A UN Special Rapporteur criticized Japan for sending evacuees home to radiation exposures 20 times higher than the original limit before the nuclear disaster of 1 ml Sievert per year.

According to a radiation simulation map by the Centre d’Enseignement et de Recherche en Environnement Atmosphérique (CEREA), along with research by Professor Hiroaki Koide, of Kyoto University, radiation levels in the state of California seem to be higher than those of the city of Hokkaido in Japan. As it is understandable that scientists have not yet calculated the cumulative impact of radiation on the West Coast 40 years from now, we therefore need the International Assessment Team to analyze the current situation and to dedicate the best expertise and resources to plan both short- and long-term strategies. It must also be noted that prevailing winds carrying airborne radiation from Fukushima do not stop at the western U.S. coastline. Indeed, this is both a national and global issue.

The confounding task of trying to address a life threatening situation for which there currently is no recognized solution presents obstacles with multiple levels of denial. The first level of denial is deliberate institutional silence.  However, it is specious to argue that because there is no solution, there is little value in talking about it and raising stress and anxiety levels.  When examining the eight years of unabated radioactive leakage from Fukushima, institutional silence from governments and academia concerning measured radiation levels and the foreseeable health impacts must be exposed and challenged.

California currently ranks as the world’s fifth largest economy, with agriculture, science and technology, media and tourism constituting the most dominant sectors. However, California’s continued economic performance can only continue when its land and citizens remain healthy.

It is past time for Californians to take a hard look at the reality of continued exposure from Fukushima and other radioactive sources, and not push the problem on to future generations. To borrow from an American Indian proverb:

We do not inherit our land from our ancestors, we borrow it from our children.

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

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

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

Africa – BRI: New China built highway

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

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

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

BRI Project:  China building high speed train

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

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

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

*****

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

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

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

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

In its Executive Summary, the report states:

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

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

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

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

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

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

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

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

Roland G. Simbulan continues:

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

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

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

*****

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

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

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

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

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

Kenya – BRI: New modern train terminal in Nairobi

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

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

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

*****

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

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

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

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

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

Little wonder why!

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

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

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

Kenya – BRI new government building in Nairobi

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

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

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

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

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

*****

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

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

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

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

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

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

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

*****

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

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

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

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

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

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

• All photos by Andre Vltchek

From Kabul to Okinawa, the Outrageous Abolition of War

Inaam (left), Habib (right) and I (photographer) sharing a good laugh at the Borderfree Nonviolence Community Centre in Kabul

I decided to write this ninth love letter specially to Inaam, the 21st century generations of the world and the people of Okinawa because of three personal reasons.

I miss having the wonderful energies of 15-year-old Inaam at the Borderfree Nonviolence Community Centre. Inaam has to polish boots in the streets of Kabul to supplement his family’s income and to survive today’s terrible economic system.

I also wish that the vision and work of abolishing war had been “attractive” enough to keep Inaam in the Abolish War Team beyond three weeks. Inaam, born at the turn of the 21st century, deserves to live in world without war.

I write to the courageous and kind Okinawans because though Japanese soldiers killed my grandfather in World War II, the people of Okinawa and Japan are healing my father through their nonviolent resistance.

*****

Dear Inaam, the 21st century generations of the world and the people of Okinawa,

You’re only fifteen, and I’m almost fifty.

I wish I didn’t hear you say to me, “Hakim, I think that war will never be abolished.” Have we greedy adults made it so very difficult for you to picture a humanity without war?

I know that deep down inside, you want war to disappear forever. I can see this wish on your face in the photo I took in 2015, for the Afghan Peace Volunteer’s #Enough! War campaign.

Inaam in 2015 (second from left) saying no to war

In 1945, the UN Charter had committed to save succeeding generations from the scourge of war, which twice in our lifetime has brought untold sorrow to mankind”.

I’m sorry that the UN and our human family have continued to inflict on you “untold sorrow”.

But I believe in you and your generation! 16-year-old Swedish student Greta Thurnberg is your peer, and she demonstrated the same wisdom you have when she said:

Today we use 100 million barrels of oil every day. There are no politics to change that. There are no rules to keep that oil in the ground, so we can’t save the world by playing by the rules because the rules have to change. Everything needs to change and it has to start today.

I wish Greta had said this about the obsolete and ineffective method of war too, but she didn’t.

There is no politician currently in office who has proposed laws to ban war. I had hoped that Bernie Sanders in the US and Jeremy Corbyn in the UK would, but they haven’t.

With your reason and compassion, you see through all the current peace negotiators of the Afghan conflict: beneath their emperor’s clothes, you see that they are naked war executioners.

When the world imagines that these peace negotiators/war executioners will negotiate for genuine peace, the world is fantasizing that the US military-christened Hellfire missiles, costing about US$58,000 each, or the extremists’ opposing suicide bombing vests, costing much less, can usher heaven into Afghanistan.

Even if you could cast an under-age vote in this July’s scheduled Afghan Presidential elections, none of the 18 candidates will abolish war. Yes, to gain votes, they will all parrot the rhetoric that they wish to end the Afghan war, but none of them will abolish the method of war.

It was only years after his political career, in 2017, that former President of USSR Mikhail Gorbachev wrote:

In modern world, wars must be outlawed, because none of the global problems we are facing can be resolved by war — not poverty, nor the environment, migration, population growth, or shortages of resources.

Gorbachev understands the real political risk of humankind annihilating herself through nuclear warfare.

Inaam, as a war child, you understand by experience that there are also no politics today to abolish war. Together with the Gretas and youth of the world, build the necessary new politics.

You’ve seen how the Afghan Peace Volunteers are organized without a Director, so if the new politics needs to be one without a President, a CEO or a Prime Minister, go for it! And, don’t worry about all the various mis-used and bombastic political terms. Go for nonviolent liberty, equality and fraternity. As the late French diplomat Stephane Hessel wrote about nonviolent resistance when he was 93:  “Indignez vous. Time for Outrage!

Also, to practice magnanimity through life, you and I must exercise timeless patience while working our butts off.

I mean, it was way back in the 1930s that British engineer Guy Stewart Callendar calculated that a doubling of CO2 in the Earth’s atmosphere could warm the Earth by 2 degrees Celsius. It has taken 90 years to reach today’s level of climate activism, and despite this, we still have people like Trump who denies climate change.

Or like with the abolition of slavery. The Qin Dynasty of China abolished slavery in 221 BC and Pope Paul III forbade slavery of the indigenous peoples of the Americas in 1537. Niger made slavery a crime only in 2003! So, the human family’s struggle against slavery took more than 2000 years, and even today, modern slavery still exists, like with the child brick-layers of Afghanistan.

History’s gradual but seismic changes happened when different individuals and societies took decisive actions at different times and ages. We can each be those channels of change: get the scientific results of war out there, use your shrill and growing voice, demand for laws to ban war, divest from the military industrial complex, don’t join the military corporations, persuade your soldier-brother to be a conscientious objector, prohibit all weapons, make military generals very unpopular just as the CUNY undergraduates did, refuse to cooperate for war like some Google and Microsoft staff did, replace every war method with a thousand nonviolent methods, turn soldiers into pacifist mediators…

All these are revolutionary acts of love; you’re already familiar with the Dari phrase, “ در کار خیر پیش دستی کردن- dar kaar khair pesh dasti kardan”, which means “For charitable work, set your hands to work quickly!”

Am I asking too much of the 15-year-old you?

You see, I want so much for you to have a meaningful and gorgeous life, and to have enough friends, friends even with those considered “enemies”.

My father had considered my Japanese friend Eitaro Oka an “enemy”, because Japanese soldiers who had occupied Singapore in 1942 killed his father. It was World War II.

But, when Eitaro visited me in Singapore years ago, my father and mother hosted him. The first thing Eitaro said to my father was, “I want to ask you for forgiveness, for the killing of your father.” My father inspired me with his reply, “You were not the one who killed my father. Please enjoy the meal, a special Singaporean dish called Hainanese Chicken Rice prepared by my wife.”

Eitaro (centre) with my parents in Singapore

When I joined a group of Japanese peace activists in Okinawa three years ago, an elderly Japanese monk stood before officials in the local office of Japan’s Ministry of Defense, and asked me for forgiveness! He pleaded against the presence of US military bases in Okinawa. This kind monk had covered his bald head with the Borderfree Blue Scarf of the Afghan Peace Volunteers!

The kind monk (left, standing) and Yuichi (centre, standing) with other Japanese activists in an office of Okinawa’s Ministry of Defense.

Many young Japanese like Yuchi, Sara and Kamoshita are resisting the re-militarization of Japan. Their current Prime Minister, Shinzo Abe, is regrettably addicted to military prowess, and wants to amend the Japanese constitution to enable the re-establishment of a Japanese army. Shinzo is a human being who is sold-out to money and power, and not very sound, as he has even nominated US President Trump for the Nobel Peace Prize!

Sara, Yuichi and Kamoshita ( first, second and third from right) with other activists

Kamoshita and Sara had wanted to visit us in Kabul this winter, but Kamoshita emailed me, I am sorry to late reply. I can’t travel to Afghanistan this time. I couldn’t persuade my family…They worry me to go.”

Not only are Japanese activists working to abolish war. Many ordinary Japanese are resisting the heavy killer machinery too.

In fact, in a February 2019 referendum, 72% of Okinawan voters opposed the construction of a new US military base to replace an existing one.  Most Okinawans don’t want US military bases on their peaceful and beautiful island.

You’ll also be encouraged to know that Masoma, Habib and new members of the Afghan Peace Volunteers had sent Msent Kamoshita, Sara and Okinawans a video message of solidarity.

Ordinary Japanese link hands in protest, at the gate of a US military base in Okinawa (insert) New Afghan Peace Volunteers link hands in solidarity with Okinawans, saying, “No to US military bases in Okinawa and Afghanistan!”

So, dear Inaam, remember how you told me that the current education system is not teaching you anything useful? You’re right. I’m sure that you can educate yourself better than the schools, especially in the knowledge, values and skills needed to build a better world.

We have on many occasions talked about true education: thinking and feeling deeply, freeing ourselves from the control of money, questioning all power, changing the culture of war within us. In relational learning, we connect all the dots and love like everyone and everything in the world is related.

Our lives are brief, but as long as I have opportunity, I’ll walk with you.

Baa mihr  با مهر( With love ) !

Hakim

The Orientalism of Western Russophobia

Last year marked the 40th anniversary of the publication of Edward W. Said’s pioneering book, Orientalism, as well as fifteen years since the Palestinian-American intellectual’s passing. To bid farewell to such an important scholar shortly after the 2003 U.S. invasion of Iraq, which Said fiercely criticized until his dying breath before succumbing to leukemia, made an already tremendous loss that much more impactful. His seminal text forever reoriented political discourse by painstakingly examining the overlooked cultural imperialism of colonial history in the West’s construction of the so-called Orient. Said meticulously interrogated the Other-ing of the non-Western world in the humanities, arts, and anthropology down to its minutiae. As a result, the West was forced to confront not just its economic and political plunder but the long-established cultural biases filtering the lens through which it viewed the East which shaped its dominion over it.

His writings proved to be so influential that they laid the foundations for what is now known as post-colonial theory. This became an ironic category as the author himself would strongly reject any implication that the subjugation of developing countries is a thing of the past. How apropos that the Mandatory Palestine-born writer’s death came in the midst of the early stages of the ‘War on Terror’ that made clear Western imperialism is very much alive. Despite its history of ethnic cleansing, slavery, and war, the United States had distinguished itself from Britain and France in that it had never established its own major colonies within the Middle East, Asia or North Africa in the heart of the Orient. According to Said, it was now undergoing this venture as the world’s sole remaining superpower following the end of the Cold War with the invasions of Afghanistan and Iraq.

Today’s political atmosphere makes the Bush era seem like eons ago. Thanks to the shameful rehabilitation of neoconservatism by centrist extremists, Americans fail to understand how Trumpism emerged from the pandora’s box of destructiveness of Bush policies that destabilized the Middle East and only increased international terrorism. Since then, another American enemy has been manufactured in the form of the Russian Federation and its President, Vladimir Putin, who drew the ire of the West after a resurgent Moscow under his leadership began to contain U.S. hegemony. This reached a crescendo during the 2016 U.S. Presidential election with the dubious accusations of election interference made by the same intelligence agencies that sold the pack of lies that Iraq possessed Weapons of Mass Destruction. The establishment has even likened the alleged intrusion by Moscow to 9/11.

If a comparison between the 2001 attacks that killed nearly 3,000 Americans and the still unproven allegations of Russian meddling seems outrageous, it is precisely such an analogy that has been made by Russiagate’s own biggest proponents, from neoconservative columnist Max Boot to Hillary Clinton herself. Truthfully, it is the climate of hysteria and dumbing down of discourse to such rigid dichotomies following both events where a real similarity can be drawn. The ‘with us or against us’ chasm that followed 9/11 has reemerged in the ‘either/or’ post-election polarity of the Trump era whereby all debate within the Overton window is pigeonholed into a ‘pro vs. anti-Trump’ or ‘pro vs. anti-Russia’ false dilemma. It is even perpetrated by some on the far left; e.g., if one critiques corporate media or Russiagate, they are grouped as ‘pro-Trump’ or ‘pro-Putin’ no matter their political orientation. This dangerous atmosphere is feeding an unprecedented wave of censorship of dissenting voices across the spectrum.

In his final years, not only did Edward Said condemn the Bush administration but highlighted how corporate media was using bigoted tropes in its representations of Arabs and Muslims to justify U.S. foreign policy. Even though it has gone mostly undetected, the neo-McCarthyist frenzy following the election has produced a similar travesty of caricatures depicting Russia and Vladimir Putin. One such egregious example was a July 2018 article in the Wall Street Journal entitled “Russia’s Turn to Its Asian Past” featuring an illustration portraying Vladimir Putin as Genghis Khan. The racist image and headline suggested that Russia is somehow inherently autocratic because of its past occupation under the Mongol Empire during its conquest of Eastern Europe and the Kievan Rus state in the 13th century. In a conceptual revival of the Eurocentric trope of Asiatic or Oriental despotism, the hint is that past race-mixing is where Russia inherited this tyrannical trait. When the cover story appeared, there was virtually no outcry due to the post-election delirium and everyday fear-mongering about Russia that is now commonplace in the media.

The overlooked casual racism used to demonize Russia in the new Cold War’s propaganda doesn’t stop there. One of the main architects of Russiagate, former Director of National Intelligence James R. Clapper, in an interview with NBC‘s Meet the Press on the reported meddling stated:

And just the historical practices of the Russians, who typically, almost genetically driven to co-opt, penetrate, gain favor, which is a typical Russian technique. So we were concerned.

Clapper, whose Office of the DNI published the Intelligence Community Assessment (ICA) “Assessing Russian Activities and Intentions in Recent US Elections”, has been widely praised and cited by corporate media as a trustworthy source despite his previous history of making intentionally false statements at a public hearing of the Senate Intelligence Committee denying that the National Security Agency (NSA) was unconstitutionally spying on U.S. citizens.

The disclosures of NSA activities by whistleblower Edward Snowden that shocked the world should have discredited Clapper’s status as a reliable figure, but not for mainstream media which has continuously colluded with the deep state during the entire Russia investigation. In fact, the scandal has been an opportunity to rehabilitate figures like the ex-spymaster complicit in past U.S. crimes from surveillance to torture. Shortly after the interview with NBC, Clapper repeated his prejudiced sentiments against Russians in a speech at the National Press Club in Australia:

But as far as our being intimate allies, trusting buds with the Russians that is just not going to happen. It is in their genes to be opposed, diametrically opposed, to the United States and to Western democracies.

The post-election mass Trump derangement has not only enabled wild accusations of treason to be made without sufficient evidence to support them, but such uninhibited xenophobic remarks to go without notice or disapproval.

In fact, liberals have seemingly abandoned their supposed progressive credence across the board while suffering from their anti-Russia neurological disorder. In an exemplar of yellow journalism, outlets like NBC News published sensational articles alleging that because of the perceived ingratiation between Trump and Putin, there was an increase in Russian ‘birth tourism’ in the United States. More commonly known by the pejorative ‘anchor babies’, birth tourism is the false claim that many immigrants travel to countries for the purpose of having children in order to obtain citizenship. While there may be individual cases, the idea that it is an epidemic is a complete myth — the vast majority of immigration is motivated by labor demands and changes in political or socio-economic factors in their native countries, whether it is from the global south or Eastern Europe. Trump has been rightfully criticized for promoting this falsehood regarding undocumented immigrants and his executive orders targeting birthright citizenship, but it appears liberals are willing to unfairly apply this same fallacy toward Russians for political reasons.

In order to make sense of the current groupthink hysteria towards Moscow, it must be understood in its context as an extension of the ongoing doctoring of history regarding U.S.-Russia relations since the Cold War. Americans living within the empire are proselytized into a glorified and nationalist version of their entire background, beginning with merchants and explorers ‘discovering’ the continent and the whitewashing of indigenous genocide. This imaginary narrative includes the version of WWII taught in U.S. schools and the arms race with the Soviet Union that followed. The West presents an entirely Anglospheric perspective of the war starting with its very chronology. For example, it is said that the conflict ‘officially’ began with the September 1st, 1939 invasion of Poland by Nazi Germany. This mythology immediately frames the war from an Eurocentric viewpoint by separating the Sino-Japanese war that was already underway as the Pacific Ocean theater began long before the ‘surprise’ Japanese attack on Pearl Harbor in 1941 and U.S. entry into the conflict.

The truth is that nearly everything Americans are taught about U.S. participation in the war is either a mischaracterization or a lie, with its role in the Allied victory inflated exponentially. The widely held misconception that the 1944 Normandy landings in the Allied invasion of France was the decisive turning point in Europe is a fairy tale. The ‘D’ in D-Day does not stand for ‘decision’ as many Westerners assume, and when the Allied forces converged on Germany from East and West it was the Soviets who captured Berlin. Although Operation Overlord may have been the largest invasion transported by sea in history, the real watershed in the Great Patriotic War was the Soviet victory in the Battle of Stalingrad the previous year, the biggest defeat ever suffered by the German army. The U.S. only took on the Wehrmacht once it was exhausted by the Red Army which bore the real burden of overcoming Germany.

Just three years earlier, the British army had been completely vanquished by the Nazi armed forces. Omitted from Hollywood folklore like Christopher Nolan’s film Dunkirk is that the Germans were entirely capable of pressing on with an invasion of the British isles but abruptly halted their advance — what stopped them? Quite simply, Hitler’s fanatical desire to conquer the Soviet Union and eradicate communism which he regarded as a greater threat to the Third Reich than Western capitalism. It is not surprising that the Eastern Front became a higher priority considering that the ruling classes in Britain, France and the U.S. had previously financed the German rearmament in violation of the Treaty of Versailles.

The Germans did not hold the same hatred for the West that it reserved for the Russians. In fact, the Führer personally admired the U.S. so much for the extermination of its natives that he named his armored private train ‘Amerika’, a mobile version of the Wolf’s Lair. The Nuremberg race statutes were partly inspired by Jim Crow segregation laws in the U.S. and many of the defendants at the Nuremberg trials tried to excuse their atrocities by arguing the similarity between Nazi race theories and the eugenicist movement which actually originated in the United States. Auschwitz physician Josef Mengele was even previously employed as an assistant to the head of the Kaiser Wilhelm Institute of Anthropology, Human Heredity, and Eugenics Institute that was funded by the Rockefeller Foundation.

Hitler also preferred an attack on the Soviets over an invasion of Britain because of the eugenics of Lebensraum. Nazi Germany, like Britain and France, was really an imperial settler colonialist state and Hitler viewed the Slav inhabitants of the USSR as ethnically inferior to the ‘master race.’ The Molotov-Ribbentrop pact had been a strategic move to buy time for the Soviets in preparation for a German onslaught, at the time the most powerful military power in the world. Britain and France had rebuffed Stalin’s efforts to form an alliance in 1938, leaving the USSR no choice but to sign a non-aggression pact with Germany, knowing full well it was only a matter of time until Hitler would eventually embark on his Masterplan for the East. Operation Barbarossa in June 1941 broke the agreement and the German dictator ultimately sealed his own fate. Although the Soviets were victorious, the slaughter that proceeded it had no parallel in human history as 27 million citizens would lose their lives in the fight compared to less than half a million Americans. Even worse, the West has made a mockery of this sacrifice with their refusal to fully acknowledge the USSR’s contribution despite the fact that they did the vast majority of the fighting and dying while 80% of all German casualties were on the Eastern Front.

Meanwhile, the Cold War had already begun before the Second World War even ended. Whether or not Stalin was fully aware of either the U.S. capability or plans to use the atomic bomb against Japan is still a matter of debate, as U.S. President Harry S. Truman changed his story numerous times over the years. Nevertheless, their use is incorrectly attributed by the West to have brought the war’s end and very few Americans realize this tale was told entirely for political reasons. The purported rationale was to allegedly save the lives of American soldiers that would be lost in a future Allied invasion of Japan planned for the Autumn of 1945. Controlling the narrative became crucial in ‘justifying’ the use of such deadly weapons which held the secret motivation to begin an arms race with the Soviets.

Stalin and U.S. President Franklin D. Roosevelt had agreed at the Yalta Conference in February 1945 that the USSR would eventually break its neutrality treaty with Japan and enter the Pacific theater later in the year. That was until Roosevelt died of a massive cerebral hemorrhage just a few months later while American nuclear physicists were busy at work enriching uranium in Los Alamos, New Mexico. Then, just a day prior to newly inaugurated President Truman’s meeting with Stalin at the Potsdam Conference in July, the U.S. army and Project Y successfully detonated a nuclear weapon for the first time with the Trinity test as part of the expensive Manhattan Project. After his face-to-face with Truman at Potsdam, whom everyone agrees at least hinted to Stalin of the new U.S. weaponry, the Soviet premier suspected the new U.S. leader would go back on the previous agreement at Yalta with Roosevelt that included compromises with the USSR in the Pacific.

The ugly truth is that the U.S. was well aware that the Japanese were willing to conditionally surrender on the basis of immunity for Emperor Hirohito. However, the U.S. secretly wanted to achieve an Allied victory ideally without Soviet participation so it could demonstrate its exclusive nuclear capability in order to dominate the post-war order. Japan didn’t relinquish following the first bombing of Hiroshima but the second, Nagasaki, three days later — both of which mostly impacted civilians, not its military. What else happened on August 9th, 1945? The Soviet Union declared war on Japan upon realizing that the U.S. was backtracking on its pledge with the underhanded use of ‘Fat Man and Little Boy’ that instantly killed more than 200,000 civilians. The timing gave the appearance that the bomb resulted in the surrender when it was the Soviet invasion of occupied Manchuria in the north against Japan’s military stronghold that was the real tipping point which led to an unconditional acceptance of defeat.

According to the Western narrative, the Cold War only began following Winston Churchill’s invitation to the U.S. by Truman after being surprisingly voted out of office in 1946. At Westminster College in Fulton, Missouri, hegave a speech entitled “Sinews of Peace”, widely known as the Iron Curtain speech, where he condemned Soviet policies in Europe and popularized the moniker for the boundary dividing the continent after the war:

From Stettin in the Baltic to Trieste in the Adriatic an “iron curtain” has descended across the continent. Behind that line lie all the capitals of the ancient states of Central and Eastern Europe. Warsaw, Berlin, Prague, Vienna, Budapest, Belgrade, Bucharest and Sofia; all these famous cities and the populations around them lie in what I must call the Soviet sphere, and all are subject, in one form or another, not only to Soviet influence but to a very high and in some cases increasing measure of control from Moscow.

Although the term ‘iron curtain’ predates Cold War usage to describe various barriers political or otherwise, what is not commonly known is that Churchill likely appropriated the term from its originator, none other than the German Minister of Propaganda Joseph Goebbels himself, who used it in reference to the Soviet Union. In February 1945, he wrote in Das Reich newspaper:

If the German people lay down their weapons, the Soviets, according to the agreement between Roosevelt, Churchill, and Stalin, would occupy all of East and Southeast Europe along with the greater part of the Reich. An iron curtain would fall over this enormous territory controlled by the Soviet Union, behind which nations would be slaughtered.

The ‘Nazi megaphone’ himself may have gotten the term from the Wehrmacht propaganda publication Signal which in 1943 published an article entitled “Behind the Iron Curtain” that described:

He who has listened in on the interrogation of a Soviet prisoner of war knows that once the dam is broken, a flood of words begins as he tries to make clear what he experienced behind the mysterious iron curtain, which more than ever separates the world from the Soviet Union.

Is it any wonder that British newspaper The Guardian is now illustrating cartoons in its anti-Russia propaganda today that imitate Goebbels’ anti-Soviet posters during WWII?  Although Stalin was unaware of Churchill’s lifting of Nazi phraseology, he still detected the resemblance between Western and Third Reich policies toward the Soviet Union in the Fulton speech during an interview with Pravda:

A point to be noted is that in this respect Mr. Churchill and his friends bear a striking resemblance to Hitler and his friends. Hitler began his work of unleashing war by proclaiming a race theory, declaring that only German-speaking people constituted a superior nation. Mr. Churchill sets out to unleash war with a race theory, asserting that only English-speaking nations are superior nations, who are called upon to decide the destinies of the entire world. The German race theory led Hitler and his friends to the conclusion that the Germans, as the only superior nation, should rule over other nations. The English race theory leads Mr. Churchill and his friends to the conclusion that the English-speaking nations, as the only superior nations, should rule over the rest of the nations of the world. Actually, Mr. Churchill, and his friends in Britain and the United States, present to the non-English speaking nations something in the nature of an ultimatum: “Accept our rule voluntarily, and then all will be well; otherwise war is inevitable.” But the nations shed their blood in the course of five years’ fierce war for the sake of the liberty and independence of their countries, and not in order to exchange the domination of the Hitlers for the domination of the Churchills. It is quite probable, accordingly, that the non-English-speaking nations, which constitute the vast majority of the population of the world, will not agree to submit to a new slavery.

It is easy to see the parallels between Stalin’s explanation for the geopolitical tensions underlying the Cold War and Edward Said’s postcolonial theory. From a Marxist perspective, one of Said’s shortcomings was a reductionism in understanding empire to cultural supremacy, one of the reasons he unfortunately conflated Marxism with Orientalism as well. When it came to the Cold War, Said also demonstrated a lack of understanding of internationalism. He wrote:

By the time of the Bandung Conference in 1955, the entire Orient had gained its independence from the Western empires and gained a new configuration of imperial powers, the United States and the Soviet Union. Unable to recognize “its” Orient in the new Third World, Orientalism now faced a challenging and politically armed Orient.

Yet who foremost ‘armed’ the movements of national liberation? The USSR, including support for the Palestinians during most of its history. Nevertheless, Stalin’s description of the West’s prerogative for post-war hegemony based on the belief in its primacy has many overlaps with the idea that the Occident exercised patronizing dominance over the East. Today, even though the Berlin Wall has long since fallen and Eastern Europe is under free enterprise, the political establishment in the West is still clinging to this attitude and misunderstanding of Moscow to fulfill its need for an permanent global nemesis with a desire to eventually colonize Russia with foreign capital as it did under Boris Yeltsin.

Russia has historically possessed a unique and ambivalent identity located between the East and West, having been invaded by both European and Asian empires in previous centuries. Said included Russia in Orientalism in his analysis of European countries and their attitude toward the East, but did not note that Russia is in many respects the Orient within the Occident, as more than 75% of its territory as the largest nation in the world is actually located in Asia while three quarters of its population live on the European side. Russia may be partly European, but it is certainly not Western. Then again, Europe is not a continent unto itself but geographically connected to Asia with the arbitrary division between them based on cultural differences, not landmass, where Russia is an intermediate. Expansionism under Peter the Great may have brought Western European ‘cultural values’ and modernization to Russia, but the majority of its territory itself remains in Asia.

Even after the presumed end of the Cold War, Russia has been excluded from the European Union and instead joined the Shanghai Cooperation Organization (SCO), while developing strong ties with China. As recently disclosed documents from the National Security Archive prove, NATO has broken its promise to Mikhail Gorbachev during the George H.W. Bush administration that it not expand eastward following Germany’s enrollment. It has since added 13 countries since 1999, 10 of which were former Warsaw Pact states. Russia’s alliance with China has been solidified precisely because it is still not treated in the same regard as other European nations even after the adoption of a private sector economy. In order to justify its continued armament and avoid obsolescence, NATO has manufactured an adversarial relationship with Moscow.

Contrary to the widespread perception of his rhetoric, in terms of policy-making President Trump has been equally as hostile to Moscow as his predecessors, if not more so in light of the U.S. withdrawal from the Intermediate-Range Nuclear Forces Treaty (INF). What the usual suspects behind the attempted soft-coup against him fail to understand is that Trump’s tact toward Putin is more likely an inverted version of the ‘only Nixon could go to China’ strategy, an unexpected style of diplomacy based on the pragmatic objective of containing Beijing by dividing America’s two primary foes. The liberals still in denial about their election defeat continue to underestimate Trump, but the Chinese are not fooled. The architect behind Nixon’s détente with Mao, Henry Kissinger, is even believed to have encouraged Trump to ease tensions with Moscow in order to quarantine China and don’t think they haven’t noticed. Ultimately, the divide between Trump and his enemies in the establishment is really a disagreement over strategy in how to surround China and prevent the inevitable downfall of the U.S. empire.

The ongoing demonization of Moscow is ultimately about China as well. It was only a matter of time until the uncertain allegations of election interference were also leveled against Beijing without proof as a Joint Statement from the U.S. intelligence agencies recently showed. Make no mistake — underneath the West’s Russophobia lies Sinophobia and as Washington’s real geopolitical challenger, China will in due course emerge as the preferred bogeyman. The bipartisan hawkishness has created an environment where rapprochement and diplomacy of any kind is seen as weakness and even a sign of treason, making the prospect of peace seemingly impossible. As China continues to grow, it will find itself more squarely in the cross-hairs of imperialism, regardless of whether Trump’s strategy to renew relations with Moscow against Beijing is successful. Until then cooler heads at the highest levels of government must prevail as they thankfully did at the height of the first Cold War for the sake of peace between Russia, the U.S. and the entire world.

Why is Japan So Bitter About Unstoppable Rise of China

There used to be a pair of beautiful swings for children, not far from an old rural temple in Mie Prefecture, where I used to frequently power walk, when searching for inspiration for my novels. Two years ago, I noticed that the swings had gotten rusty, abandoned, and unkempt. Yesterday, I spotted a yellow ribbon, encircling and therefore closing the structure down. It appears that the decision had already been made to get rid of the playground, irreversibly.

Abandoned swings Mie Perfecture

One day earlier, I observed an old homeless man sleeping right under a big sign which was advertising a cluster of luxury eateries at the lavish Nagoya train station.

Homeless man at Nagoya Station

And in the city of Yokkaichi, which counts some 350,000 inhabitants, almost all but very few bus lines had disappeared. What had also disappeared was an elegant and unique, shining zodiac, which used to be engraved into the marble promenade right in front of the Kintetsu Line train station, the very center of the city. The fast ferry across the bay, connecting Yokkaichi with Centrair International Airport that serves Nagoya and in fact almost the entire area of Central Japan, stopped operating, as the municipal subsidies dried up. Now people have to drive some seventy kilometers, all around the bay, burning fuel and paying exuberant highway tolls and airport parking fees, to make it to their flight. What used to constitute public spaces, or even just rice fields, is rapidly being converted into depressing parking lots. It is happening in Central Japan, but also as far southwest as the city of Nagasaki, and as north as Nemuro.

No more public spaces just parking lots

Homeless people are everywhere. Cars (Japan now has more cars per capita than the United States) are rotting in the middle of rice fields and at the edges of once pristine forests, as they lose value rapidly, and it costs a lot of money to get rid of them properly. Entire rural villages are being depopulated, in fact turning into ghost towns. There is rust, bad planning and an acute lack of anything public, all over the country.

Abandoned houses South Mie

Japan is in decay. For many years, it was possible, with half-closed eyes, to ignore it, as the country was due to inertia hanging on to the top spot of the richest nations on Earth. But not anymore: the deterioration is now just too visible.

Oma , Aomori Prefecture

The decay is not as drastic as one can observe in some parts of France, the United States, or the UK. But decay it is. The optimistic, heady days of nation-building are over. The Automobile industry and other corporations are literally cannibalizing the country, dictating its lifestyle. In smaller cities, motorists do not yield on pedestrian crossings anymore. Cars are prioritized by urban planners, and some urban planners are paid, bribery by the car industry. Many areas can now only be reached by cars. There are hardly any public exercise machines, and almost no new parks. Japan, which prides itself on producing some of the most refined food, is now fully overwhelmed by several chains of convenience stores, which are full of unhealthy foodstuff.

Suburban decay all over Japan

For generations, people were sacrificing their lives in order to build a prosperous, powerful and socially balanced Japan. Now, there is no doubt that the citizens are there mainly to support powerful corporations or in short: big business. Japanese used to have its own and distinct model, but now the lifestyle is not too different from one that could be observed in North America or Europe. For the second time in its history, Japan has been forced to ‘open to the world’ (read: to Western interests and to the global capitalist economy), and to accept the concepts that used to be thoroughly alien to the Asian culture. The consequences were quick to arrive, and in summary, they have been thoroughly disastrous.

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After WWII, Japan had to accept occupation. The Constitution was written by the US. Defeated but determined to rebuild and join the ranks of the richest countries on earth, Japan began collaborating with the West, first supporting the brutal invasion to Korea (the so-called “Korean War”). It totally gave up on its independence, fully surrendering its foreign policy, which gradually became indistinct from that of the United States in particular, and the West in general. The mass media has been, since the end of the war to now, controlled and censored by the regime in Tokyo. Major Japanese newspapers, as well as the Japanese national broadcaster NHK, would never dare to broadcast or publish any important international news, unless at least one major US or British mainstream media outlet had set the tone and example of how the story should be covered by the mass media in the ‘client’ states. In this respect, the Japanese media is not different from its counterparts in countries such as Indonesia or Kenya. Japan is also definitely not a ‘democracy’, if ‘democracy’ simply means the rule of the people. Traditionally, Japanese people used to live mainly in order to serve the nation, which was perhaps not such a bad concept. It used to work, at least for the majority. However, now, they are expected to sacrifice their lives solely for the profits of corporations.

People in Japan do not rebel, even when they are robbed by their rulers. They are shockingly submissive.

Japan is not only in decay. It tries to spread its failure like an epidemic. It is actually spreading, and glorifying its submissive, subservient foreign and domestic policies. Through scholarships, it is continuously indoctrinating, and effectively intellectually castrating tens of thousands of willing students from the poor Southeast Asian nations, and other parts of the world.

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In the meantime, China, which is literally ‘next door’, is leading in scientific research, in urban planning, and in social policies. With ‘Ecological Civilization’ now part of its Constitution, it is way ahead of Japan in developing alternative sources of energy, public transportation, as well as organic food production. By 2020, there will be no more pockets of extreme poverty on the entire huge territory of China.

And in China, it is all done under the red Communist banners, which the Japanese public has been taught to despise and reject.

Tremendous Chinese determination, zeal, genius and socialist spirit are evidently superior, compared to the sclerotic, conservative and revanchist spirit of modern Japan and of its handlers in the West.The contrast is truly shocking and very clearly detectable even with unarmed eyes.

And on the international stage: while Japanese corporations are plundering countries, and corrupting governments1, China is helping to put entire continents back on their feet, using good old Communist internationalist ideals. The West does its best to smear China and its great efforts, and Japan is doing the same, even inventing new insults, but the truth is more and more difficult to hide. One speaks to Africans, and he or she finds out quickly what goes on. One travels to China, and everything becomes even clearer. Unless one is paid very well not to see.

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Instead of learning and deciding to totally change its economic and social system, Japan is turning into a sore loser. It hates China for succeeding under its independent policies, and under its Communist placards. It hates China for building new and beautiful cities designed for the people. It hates China even for doing its best to save the environment, as well as the countryside. And it hates China for being fully independent, politically and socially, even academically.

China tried ‘playing’ footsies with the Western academia, but the game almost turned deadly, leading to ideological infiltration and the near collapse of China’s intellectual independence. But at least the danger was identified, and the Western subversion was quickly stopped, just 5 minutes to midnight so to speak — before it was too late.

In Japan, submission and collaboration with the Western global imperialist regime is worn as some code of honor. Japanese graduates of various US and UK universities frame their university diplomas and hang them on the wall, as if they’d symbolize great proof of their success, instead of collaboration with the system which is ruining almost entire planet.

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I remember, some fifteen years ago, Chinese tourists would stand on the bullet train platforms all over Japan, with their cameras ready, dreaming. When train would pass, they’d sigh.

Now, China has the most extensive and the fastest bullet train network in the world. Their trains are also more comfortable and incomparably cheaper than the Japanese or French ones; priced so everyone can afford to travel.

Chinese women used to eye, sadly, the offerings of Japanese department stores. iPhones were what the middle class was dreaming of possessing. Now Chinese visitors to Japan are dressed as elegantly as the locals, iPhones are not considered a luxury, and actually, Huawei and other Chinese manufacturers are now producing better phones than Apple.

I also remember how impressed Chinese tourists to Japan were with the modern architecture, international concert halls, and elegant cafes and boutiques.

Now, the cultural life of Beijing and Shanghai is incomparably richer than that of Tokyo or Osaka. Modern architecture in China is much more impressive, and there are innovations in both the urban and rural life of China, that are still far from being implemented in Japan.

While public playgrounds in Japan are being abandoned or converted into parking lots, China is building new parks, huge and small, recovering river and lake areas, turning them into public spaces.

Instead of omnipresent Japanese advertisements, China is placing witty and educative cartoons speaking about socialist virtues, solidarity, compassion and equality, at many arteries, even at the metro trains. Ecological civilization is ‘advertised’ basically everywhere.

Japanese people are increasingly gloomy, but in China, confident smiles are seen at each and every step.

China is rising. It is unstoppable. Not because its economic growth (government is actually not interested in it, too much, anymore), but because the quality of life of the Chinese citizens is going steadily up.

And that is all that really matters, isn’t it? We can clearly improve the life of people under a tolerant, modern Communist system. As long as people smile, as long they are educated, healthy and happy, we are clearly winning!

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Some individuals are still chasing those magic images of pristine Japanese forests and lakes. Yes, they are still there, if you search very hard. Tea rooms and trees, lovely creeks. But you have to work very hard, you have to edit and search for the perfect shots, as Japanese cities and countryside are dotted with rotten cars and weird metal beams, with unkempt public spaces, with ugly electric wires hanging everywhere. As long as money can be saved, as long as there is profit, anything goes.

Japanese people find it hard to formulate their feelings on the subject. But in summary: they feel frustrated that the country they used to occupy and torture, is doing much better than their own. To Japanese imperialists, the Chinese were simply ‘sub-humans’. It is never pronounced, but Japan has only been respecting Western culture and Western power. And now, the Chinese ‘sub-humans’ are exploring the bottoms of the oceans, building airplanes, running the fastest trains on earth, and making wonderful art films. And they are set on liberating the oppressed world, through its ‘Belt and Road Initiative’, and through other incredible ideas.

And what is Japan doing? Selfies and video games, idiotic meaningless nihilist cartoons, brainless social media, an enormous avalanche of uninventive pornography, of decorative ‘arts’, pop music and mass-produced cars. Its people are depressed. I have three decades of history with Japan, I know it intimately, still love it; love many things about it, but I also clearly see that it is changing, in fact collapsing. And it is refusing to admit it, and to change.

I work with China, because I love where it is going. I like its modern Communist model (I was never a great supporter of the “Gang of Four”and their cult and glorification of poverty) – let all Chinese people be rich soon, and let the entire oppressed world be wealthy as well!

But that is not what Japan wants. For some time, it felt ‘unique’. It was the only rich Asian country. The only Asian country allowed to be rich, by the West. During apartheid, in South Africa, the Japanese people were defined as “honorary whites”. It is because they had embraced Western culture. Because they opted to plunder the world, together with the Europeans and North Americans, instead of helping the subjugated nations. In many ways, it was a form of political and moral prostitution, but it paid well — extremely well, so its morality was simply not discussed.

Now China is getting ahead simply because of its courage, hard work, the genius of its people, and all this, under the wise leadership of the Communist Party and its central planning. Precisely under things that the Japanese people were brainwashed into hating.

This is frustrating. It is scary. So, all that submission, humiliation and bowing to the empire was for nothing? In the end, it is China, it is Communism which will win, and which will be doing the greatest service to humanity.

Yes, Japan is frustrated. These days, polls speak of some 80% of the Japanese disliking the Chinese.

As I interact with people from all corners of Japan, I am getting convinced that the Japanese public subconsciously feels that, for decades, it has been betting on the ‘wrong horse’. It is too proud to verbalize it. It is too scared to fully reflect on it. But life in Japan, at least for many, is clearly becoming meaningless, gloomy and depressing. And there is no revolution on the horizon, as the country was successfully de-politicized.

China is building, inventing, struggling and marching forward, confidently, surrounded by friends, but independently.

Japan is tied up and restrained. It cannot move. It doesn’t even know how to move, how to resist, anymore.

And that is why Japan hates China!

  1. For instance, the big car industry of Japan (Honda, Toyota, mainly), that managed to corrupt governments of Southeast Asian countries (like Indonesia, Thailand), ‘convincing them’ not to build any sound public transportation systems in their cities, consequently reducing Jakarta, Bandung, Surabaya, Chiang Mai, Hat Yai etc to urban hell.

Universal Basic Income Is Easier Than It Looks

Calls for a Universal Basic Income have been increasing, most recently as part of the Green New Deal introduced by Rep. Alexandria Ocasio-Cortez (D-NY) and supported in the last month by at least 40 members of Congress. A Universal Basic Income (UBI) is a monthly payment to all adults with no strings attached, similar to Social Security. Critics say the Green New Deal asks too much of the rich and upper-middle-class taxpayers who will have to pay for it, but taxing the rich is not what the resolution proposes. It says funding would primarily come from the federal government, “using a combination of the Federal Reserve, a new public bank or system of regional and specialized public banks,” and other vehicles.

The Federal Reserve alone could do the job. It could buy “Green” federal bonds with money created on its balance sheet, just as the Fed funded the purchase of $3.7 trillion in bonds in its “quantitative easing” program to save the banks. The Treasury could also do it. The Treasury has the constitutional power to issue coins in any denomination, even trillion dollar coins. What prevents legislators from pursuing those options is the fear of hyperinflation from excess “demand” (spendable income) driving prices up. But, in fact, the consumer economy is chronically short of spendable income, due to the way money enters the consumer economy. We actually need regular injections of money to avoid a “balance sheet recession” and allow for growth, and a UBI is one way to do it.

The pros and cons of a UBI are hotly debated and have been discussed elsewhere. The point here is to show that it could actually be funded year after year without driving up taxes or prices. New money is continually being added to the money supply, but it is added as debt created privately by banks. (How banks rather than the government create most of the money supply today is explained on the Bank of England website here.) A UBI would replace money-created-as-debt with debt-free money – a “debt jubilee” for consumers – while leaving the money supply for the most part unchanged; and to the extent that new money was added, it could help create the demand needed to fill the gap between actual and potential productivity.

The Debt Overhang Crippling Economies

The “bank money” composing most of the money in circulation is created only when someone borrows, and today businesses and consumers are burdened with debts that are higher than ever before. In 2018, credit card debt alone exceeded $1 trillion, student debt exceeded $1.5 trillion, auto loan debt exceeded $1.1 trillion, and non-financial corporate debt hit $5.7 trillion. When businesses and individuals pay down old loans rather than taking out new loans, the money supply shrinks, causing a “balance sheet recession.” In that situation, the central bank, rather than removing money from the economy (as the Fed is doing now), needs to add money to fill the gap between debt and the spendable income available to repay it.

Debt always grows faster than the money available to repay it. One problem is the interest, which is not created along with the principal, so more money is always owed back than was created in the original loan. Beyond that, some of the money created as debt is held off the consumer market by “savers” and investors who place it elsewhere, making it unavailable to companies selling their wares and the wage-earners they employ. The result is a debt bubble that continues to grow until it is not sustainable and the system collapses, in the familiar death spiral euphemistically called the “business cycle.” As economist Michael Hudson shows in his 2018 book And Forgive Them Their Debts, this inevitable debt overhang was corrected historically with periodic “debt jubilees” – debt forgiveness – something he argues we need to do again today.

For governments, a debt jubilee could be effected by allowing the central bank to buy government securities and hold them on its books. For individuals, one way to do it fairly across the board would be with a UBI.

Why a UBI Need Not Be Inflationary

In a 2018 book called The Road to Debt Bondage: How Banks Create Unpayable Debt, political economist Derryl Hermanutz proposes a central-bank-issued UBI of one thousand dollars per month, credited directly to people’s bank accounts. Assuming this payment went to all US residents over 18, or about 241 million people, the outlay would be close to $3 trillion annually. For people with overdue debt, Hermanutz proposes that it automatically go to pay down those debts. Since money is created as loans and extinguished when they are repaid, that portion of a UBI disbursement would be extinguished along with the debt.

People who were current on their debts could choose whether or not to pay them down, but many would also no doubt go for that option. Hermanutz estimates that roughly half of a UBI payout could be extinguished in this way through mandatory and voluntary loan repayments. That money would not increase the money supply or demand. It would just allow debtors to spend on necessities with debt-free money rather than hocking their futures with unrepayable debt.

He estimates that another third of a UBI disbursement would go to “savers” who did not need the money for expenditures. This money, too, would not be likely to drive up consumer prices, since it would go into investment and savings vehicles rather than circulating in the consumer economy. That leaves only about one-sixth of payouts, or $500 billion, that would actually be competing for goods and services; and that sum could easily be absorbed by the “output gap” between actual and forecasted productivity.

According to a July 2017 paper from the Roosevelt Institute called “What Recovery? The Case for Continued Expansionary Policy at the Fed”:

GDP remains well below both the long-run trend and the level predicted by forecasters a decade ago. In 2016, real per capita GDP was 10% below the Congressional Budget Office’s (CBO) 2006 forecast, and shows no signs of returning to the predicted level.

The report showed that the most likely explanation for this lackluster growth was inadequate demand. Wages have remained stagnant; and before producers will produce, they need customers knocking on their doors.

In 2017, the US Gross Domestic Product was $19.4 trillion. If the economy is running at 10% below full capacity, $2 trillion could be injected into the economy every year without creating price inflation. It would just generate the demand needed to stimulate an additional $2 trillion in GDP. In fact, a UBI might pay for itself, just as the G.I. Bill produced a sevenfold return from increased productivity after World War II.

The Evidence of China

That new money can be injected year after year without triggering price inflation is evident from a look at China. In the last 20 years, its M2 money supply has grown from just over 10 trillion yuan to 80 trillion yuan ($11.6T), a nearly 800% increase. Yet the inflation rate of its Consumer Price Index (CPI) remains a modest 2.2%.

Why has all that excess money not driven prices up? The answer is that China’s Gross Domestic Product has grown at the same fast clip as its money supply. When supply (GDP) and demand (money) increase together, prices remain stable.

Whether or not the Chinese government would approve of a UBI, it does recognize that to stimulate productivity, the money must get out there first; and since the government owns 80% of China’s banks, it is in a position to borrow money into existence as needed. For “self-funding” loans – those that generate income (fees for rail travel and electricity, rents for real estate) – repayment extinguishes the debt along with the money it created, leaving the net money supply unchanged. When loans are not repaid, the money they created is not extinguished; but if it goes to consumers and businesses that then buy goods and services with it, demand will still stimulate the production of supply, so that supply and demand rise together and prices remain stable.

Without demand, producers will not produce and workers will not get hired, leaving them without the funds to generate supply, in a vicious cycle that leads to recession and depression. And that cycle is what our own central bank is triggering now.

The Fed Tightens the Screws

Rather than stimulating the economy with new demand, the Fed has been engaging in “quantitative tightening.” On December 19, 2018, it raised the fed funds rate for the ninth time in 3 years, despite a “brutal” stock market in which the Dow Jones Industrial Average had already lost 3,000 points in 2-½ months. The Fed is still struggling to reach even its modest 2% inflation target, and GDP growth is trending down, with estimates at only 2-2.7% for 2019. So why did it again raise rates, over the protests of commentators including the president himself?

For its barometer, the Fed looks at whether the economy has hit “full employment,” which it considers to be 4.7% unemployment, taking into account the “natural rate of unemployment” of people between jobs or voluntarily out of work. At full employment, workers are expected to demand more wages, causing prices to rise. But unemployment is now officially at 3.7% – beyond technical full employment – and neither wages nor consumer prices have shot up. There is obviously something wrong with the theory, as is evident from a look at Japan, where prices have long refused to rise despite a serious lack of workers.

The official unemployment figures are actually misleading. Including short-term discouraged workers, the rate of US unemployed or underemployed workers as of May 2018 was 7.6%, double the widely reported rate. When long-term discouraged workers are included, the real unemployment figure was 21.5%. Beyond that large untapped pool of workers, there is the seemingly endless supply of cheap labor from abroad and the expanding labor potential of robots, computers and machines. In fact, the economy’s ability to generate supply in response to demand is far from reaching full capacity today.

Our central bank is driving us into another recession based on bad economic theory. Adding money to the economy for productive, non-speculative purposes will not drive up prices so long as materials and workers (human or mechanical) are available to create the supply necessary to meet demand; and they are available now. There will always be price increases in particular markets when there are shortages, bottlenecks, monopolies or patents limiting competition, but these increases are not due to an economy awash with money. Housing, healthcare, education and gas have all gone up, but it is not because people have too much money to spend. In fact, it is those necessary expenses that are driving people into unrepayable debt, and it is this massive debt overhang that is preventing economic growth.

Without some form of debt jubilee, the debt bubble will continue to grow until it can again no longer be sustained. A UBI can help correct that problem without fear of “overheating” the economy, so long as the new money is limited to filling the gap between real and potential productivity and goes into generating jobs, building infrastructure and providing for the needs of the people, rather than being diverted into the speculative, parasitic economy that feeds off them.

This article was first published on Truthdig.com

This Radical Plan to Fund the “Green New Deal” Just Might Work

With what Naomi Klein calls “galloping momentum,” the “Green New Deal” promoted by newly-elected Rep. Alexandria Ocasio-Cortez (D-NY) appears to be forging a political pathway for solving all of the ills of society and the planet in one fell swoop. It would give a House Select Committee “a mandate that connects the dots between energy, transportation, housing, as well as healthcare, living wages, a jobs guarantee” and more. But to critics even on the left it is just political theater, since “everyone knows” a program of that scope cannot be funded without a massive redistribution of wealth and slashing of other programs (notably the military), which is not politically feasible.

Perhaps, but Ocasio-Cortez and the 22 representatives joining her in calling for a Select Committee are also proposing a novel way to fund the program, one which could actually work. The resolution says funding will primarily come from the federal government, “using a combination of the Federal Reserve, a new public bank or system of regional and specialized public banks, public venture funds and such other vehicles or structures that the select committee deems appropriate, in order to ensure that interest and other investment returns generated from public investments made in connection with the Plan will be returned to the treasury, reduce taxpayer burden and allow for more investment.”  

A network of public banks could fund the Green New Deal in the same way President Franklin Roosevelt funded the original New Deal. At a time when the banks were bankrupt, he used the publicly-owned Reconstruction Finance Corporation as a public infrastructure bank. The Federal Reserve could also fund any program Congress wanted, if mandated to do it. Congress wrote the Federal Reserve Act and can amend it. Or the Treasury itself could do it, without the need even to change any laws. The Constitution authorizes Congress to “coin money” and “regulate the value thereof,” and that power has been delegated to the Treasury. It could mint a few trillion dollar platinum coins, put them in its bank account, and start writing checks against them. What stops legislators from exercising those constitutional powers is simply that “everyone knows” Zimbabwe-style hyperinflation will result. But will it? Compelling historical precedent shows that this need not be the case.

Michael Hudson, professor of economics at the University of Missouri, Kansas City, has studied the hyperinflation question extensively. He writes that those disasters were not due to government money-printing to stimulate the economy. Rather, “Every hyperinflation in history has been caused by foreign debt service collapsing the exchange rate. The problem almost always has resulted from wartime foreign currency strains, not domestic spending.”

As long as workers and materials are available and the money is added in a way that reaches consumers, adding money will create the demand necessary to prompt producers to create more supply. Supply and demand will rise together and prices will remain stable. The reverse is also true. If demand (money) is not increased, supply and GDP will not go up. New demand needs to precede new supply.

The Public Bank Option: The Precedent of Roosevelt’s New Deal

Infrastructure projects of the sort proposed in the Green New Deal are “self-funding,” generating resources and fees that can repay the loans. For these loans, advancing funds through a network of publicly-owned banks will not require taxpayer money and can actually generate a profit for the government. That was how the original New Deal rebuilt the country in the 1930s at a time when the economy was desperately short of money.

The publicly-owned Reconstruction Finance Corporation (RFC) was a remarkable publicly-owned credit machine that allowed the government to finance the New Deal and World War II without turning to Congress or the taxpayers for appropriations. First instituted in 1932 by President Herbert Hoover, the RFC was not called an infrastructure bank and was not even a bank, but it served the same basic functions. It was continually enlarged and modified by President Roosevelt to meet the crisis of the times, until it became America’s largest corporation and the world’s largest financial organization. Its semi-independent status let it work quickly, allowing New Deal agencies to be financed as the need arose.

The RFC Act of 1932 provided the RFC with capital stock of $500 million and the authority to extend credit up to $1.5 billion (subsequently increased several times). The initial capital came from a stock sale to the US Treasury. With those resources, from 1932 to 1957 the RFC loaned or invested more than $40 billion. A small part of this came from its initial capitalization. The rest was borrowed, chiefly from the government itself. Bonds were sold to the Treasury, some of which were then sold to the public; but most were held by the Treasury. The RFC ended up borrowing a total of $51.3 billion from the Treasury and $3.1 billion from the public.

Thus the Treasury was the lender, not the borrower, in this arrangement. As the self-funding loans were repaid, so were the bonds that were sold to the Treasury, leaving the RFC with a net profit. The RFC was the lender for thousands of infrastructure and small business projects that revitalized the economy, and these loans produced a total net income of $690,017,232 on the RFC’s “normal” lending functions (omitting such things as extraordinary grants for wartime). The RFC financed roads, bridges, dams, post offices, universities, electrical power, mortgages, farms, and much more; and it funded all this while generating income for the government.

The Central Bank Option: How Japan Is Funding Abenomics with Quantitative Easing 

The Federal Reserve is another funding option before the Green New Deal. The Fed showed what it can do with “quantitative easing” when it created the funds to buy $2.46 trillion in federal debt and $1.77 trillion in mortgage-backed securities, all without inflating consumer prices. The Fed could use the same tool to buy bonds ear-marked for a Green New Deal; and since it returns its profits to the Treasury after deducting its costs, the bonds would be nearly interest-free. If they were rolled over from year to year, the government would in effect be issuing new money.

This is not just theory. Japan is actually doing it, without creating even the modest 2 percent inflation the government is aiming for. “Abenomics,” the economic agenda of Japan’s Prime Minister Shinzo Abe, combines central bank quantitative easing with fiscal stimulus (large-scale increases in government spending). Since Abe came into power in 2012, Japan has seen steady economic growth, and its unemployment rate has fallen by nearly half; yet inflation remains very low, at 0.7 percent. Social Security-related expenses accounted for 55 percent of general expenditure in the 2018 federal budget, and a universal healthcare insurance system is maintained for all citizens. Nominal GDP is up 11 percent since the end of the first quarter of 2013, a much better record than during the prior two decades of Japanese stagnation; and the Nikkei stock market is at levels not seen since the early 1990s, driven by improved company earnings. Growth remains below targeted levels, but according to the Financial Times in May 2018, this is because fiscal stimulus has actually been too small. While spending with the left hand, the government has been taking the money back with the right, increasing the sales tax from 5 percent to 8 percent.

Abenomics has been declared a success even by the once-critical International Monetary Fund. After Prime Minister Shinzo Abe crushed his opponents in October 2017, Noah Smith wrote in Bloomberg, “Japan’s long-ruling Liberal Democratic Party has figured out a novel and interesting way to stay in power – govern pragmatically, focus on the economy and give people what they want.” He said everyone who wanted a job had one; small and midsized businesses were doing well; and the BOJ’s unprecedented program of monetary easing had provided easy credit for corporate restructuring without generating inflation. Abe had also vowed to make both preschool and college free.

Not that all is idyllic in Japan. Forty percent of Japanese workers lack secure full-time employment and adequate pensions. But the point underscored here is that large-scale digital money-printing by the central bank to buy back the government’s debt combined with fiscal stimulus by the government (spending on “what the people want”) has not inflated Japanese prices, the alleged concern preventing other countries from doing it.

Abe’s novel economic program has achieved more than just stimulating growth. By selling its debt to its own central bank, which returns the interest to the government, the Japanese government has in effect been canceling its debt; and until recently, it was doing this at the rate of a whopping $720 billion (¥80tn) per year. According to fund manager Eric Lonergan in a February 2017 article:

The Bank of Japan is in the process of owning most of the outstanding government debt of Japan (it currently owns around 40%). BOJ holdings are part of the consolidated government balance sheet. So its holdings are in fact the accounting equivalent of a debt cancellation. If I buy back my own mortgage, I don’t have a mortgage.

If the Federal Reserve followed suit and bought 40 percent of the US national debt, it would be holding $8 trillion in federal securities, three times its current holdings from its quantitative easing programs. Yet liquidating a full 40 percent of Japan’s government debt has not triggered price inflation.

Filling the Gap Between Wages, Debt and GDP

Rather than stepping up its bond-buying, the Federal Reserve is now bent on “quantitative tightening,” raising interest rates and reducing the money supply by selling its bonds into the market in anticipation of “full employment” driving up prices. “Full employment” is considered to be 4.7 percent unemployment, taking into account the “natural rate of unemployment” of people between jobs or voluntarily out of work. But the economy has now hit that level and prices are not in the danger zone, despite nearly 10 years of “accommodative” monetary policy. In fact, the economy is not near either true full employment or full productive capacity, with Gross Domestic Product remaining well below both the long-run trend and the level predicted by forecasters a decade ago. In 2016, real per capita GDP was 10 percent below the 2006 forecast of the Congressional Budget Office, and it shows no signs of returning to the predicted level.

In 2017, US gross domestic product was $19.4 trillion. Assuming that sum is 10 percent below full productive capacity, the money circulating in the economy needs to be increased by another $2 trillion to create the demand to bring it up to full capacity. That means $2 trillion could be injected into the economy every year without creating price inflation. New supply would just be generated to meet the new demand, bringing GDP to full capacity while keeping prices stable.

This annual injection of new money not only can be done without creating price inflation; it actually needs to be done to reverse the massive debt bubble now threatening to propel the economy into another Great Recession. Moreover, the money can be added in such a way that the net effect will not be to increase the money supply. Virtually our entire money supply is created by banks as loans, and any money used to pay down those loans will be extinguished along with the debt. Other money will be extinguished when it returns to the government in the form of taxes. The mechanics of that process, and what could be done with another $2 trillion injected directly into the economy yearly, will be explored in Part 2 of this article.

This article was first posted on Truthdig.com

Canada: Preferring Military Might over Peaceful Discussion in Korea

Who prefers military might over peaceful discussion to settle a long festering international dispute? Canada, it seems.

It may surprise some that a Canadian general is undercutting inter-Korean rapprochement while Global Affairs Canada seeks to maintain its 70-year old war footing, but that is what the Liberal government is doing.

At the start of the month Canadian Lieutenant General Wayne Eyre told a Washington audience that the North Koreans were “experts at separating allies” and that a bid for a formal end to the Korean war represented a “slippery slope” for the 28,500 US troops there. “So what could an end-of-war declaration mean? Even if there is no legal basis for it, emotionally people would start to question the presence and the continued existence of the United Nations Command,” said Eyre at the Carnegie Institute for International Peace. “And it’s a slippery slope then to question the presence of U.S. forces on the peninsula.”

The first non-US general to hold the post since the command was created to fight the Korean War in 1950, Eyre became deputy commander of the UNC at the end of July. He joined 14 other Canadian officers with UNC.

Responsible for overseeing the 1953 armistice agreement, UNC has undercut Korean rapprochement. At the start of the month the Financial Times reported, “the US-spearheaded United Nations Command has in recent weeks sparked controversy in host nation South Korea with a series of moves that have highlighted the chasm between Seoul’s pro-engagement attitude to Pyongyang and Washington’s hard line.”  In August, for instance, the UN force blocked a train carrying South Korean officials from crossing the Demilitarized Zone as part of an initiative to improve relations by modernizing cross-border railways.

As it prepares to concede operational control over its forces to Seoul in coming years, Washington is pushing to “revitalize” UNC, which is led by a US General who simultaneously commands US troops in Korea. According to the Financial Times, the UN force “serves to bolster and enhance the US’s position in north-east Asia at a time when China is rising.” To “revitalize” UNC the US is pressing the 16 countries that deployed soldiers during the Korean War to increase their military contribution going forward, a position argued at a Vancouver gathering in January on promoting sanctions against the North.

In other words, Ottawa and Washington would prefer the existing state of affairs in Korea because it offers an excuse for keeping tens of thousands of troops near China.

As part of reducing tensions, ridding the peninsula of nuclear weapons and possibly reunifying their country, the two Korean governments have sought a formal end to the Korean War. It’s an initial step in an agreement the Korean leaders signed in April and last month they asked the UN to circulate a peace declaration calling for an official end to hostilities. But, Canadian foreign minister Chrystia Freeland has responded gingerly to these efforts. In response to Seoul and Pyongyang’s joint announcement to seek a formal end to the Korean War in April Freeland said, “we all need to be careful and not assume anything.”

Two Global Affairs Canada statements released last month on the “North Korea nuclear crisis” studiously ignored the Koreas’ push for an official end to hostilities. Instead they called for “sanctions that exert pressure on North Korea to abandon its weapons of mass destruction and ballistic missile programs completely, verifiably and irreversibly.” The second statement said UN Security Council sanctions “must … remain in place until Pyongyang takes concrete actions in respect of its international obligations.”

Global Affairs’ position flies in the face of South Korea, Russia, China and other nations that have brought up easing UN sanctions on North Korea. Washington, on the other hand, is seeking to tighten sanctions.

Partly to bolster the campaign to isolate North Korea a Vancouver Island based submarine was sent across the big pond at the start of the year. In April Ottawa also sent a CP-140 Aurora surveillance aircraft and 40 military personnel to a US base in Japan from which British, Australian and US forces monitor the North’s efforts to evade UN sanctions. A September Global Affairs Canada statement titled “Canada renews deployment in support of multinational initiative to enforce UN Security Council sanctions on North Korea” noted: “A Canadian Armed Forces maritime patrol aircraft will return to the region to help counter North Korea’s maritime smuggling, in particular its use of ship-to-ship transfers of refined petroleum products. In addition, Her Majesty’s Canadian Ship (HMCS) Calgary, on operations in the area as part of Canada’s continued presence in the region, was named to contribute to this effort.”

Rather than undermine Korean rapprochement, Ottawa should call for an official end to the 70-year old war and direct the Canadians in UNC to support said position. Canada should welcome peace in Korea even if it may trouble those seeking to maintain 30,000 US troops to “contain” China.

Canada: Preferring Military Might over Peaceful Discussion in Korea

Who prefers military might over peaceful discussion to settle a long festering international dispute? Canada, it seems.

It may surprise some that a Canadian general is undercutting inter-Korean rapprochement while Global Affairs Canada seeks to maintain its 70-year old war footing, but that is what the Liberal government is doing.

At the start of the month Canadian Lieutenant General Wayne Eyre told a Washington audience that the North Koreans were “experts at separating allies” and that a bid for a formal end to the Korean war represented a “slippery slope” for the 28,500 US troops there. “So what could an end-of-war declaration mean? Even if there is no legal basis for it, emotionally people would start to question the presence and the continued existence of the United Nations Command,” said Eyre at the Carnegie Institute for International Peace. “And it’s a slippery slope then to question the presence of U.S. forces on the peninsula.”

The first non-US general to hold the post since the command was created to fight the Korean War in 1950, Eyre became deputy commander of the UNC at the end of July. He joined 14 other Canadian officers with UNC.

Responsible for overseeing the 1953 armistice agreement, UNC has undercut Korean rapprochement. At the start of the month the Financial Times reported, “the US-spearheaded United Nations Command has in recent weeks sparked controversy in host nation South Korea with a series of moves that have highlighted the chasm between Seoul’s pro-engagement attitude to Pyongyang and Washington’s hard line.”  In August, for instance, the UN force blocked a train carrying South Korean officials from crossing the Demilitarized Zone as part of an initiative to improve relations by modernizing cross-border railways.

As it prepares to concede operational control over its forces to Seoul in coming years, Washington is pushing to “revitalize” UNC, which is led by a US General who simultaneously commands US troops in Korea. According to the Financial Times, the UN force “serves to bolster and enhance the US’s position in north-east Asia at a time when China is rising.” To “revitalize” UNC the US is pressing the 16 countries that deployed soldiers during the Korean War to increase their military contribution going forward, a position argued at a Vancouver gathering in January on promoting sanctions against the North.

In other words, Ottawa and Washington would prefer the existing state of affairs in Korea because it offers an excuse for keeping tens of thousands of troops near China.

As part of reducing tensions, ridding the peninsula of nuclear weapons and possibly reunifying their country, the two Korean governments have sought a formal end to the Korean War. It’s an initial step in an agreement the Korean leaders signed in April and last month they asked the UN to circulate a peace declaration calling for an official end to hostilities. But, Canadian foreign minister Chrystia Freeland has responded gingerly to these efforts. In response to Seoul and Pyongyang’s joint announcement to seek a formal end to the Korean War in April Freeland said, “we all need to be careful and not assume anything.”

Two Global Affairs Canada statements released last month on the “North Korea nuclear crisis” studiously ignored the Koreas’ push for an official end to hostilities. Instead they called for “sanctions that exert pressure on North Korea to abandon its weapons of mass destruction and ballistic missile programs completely, verifiably and irreversibly.” The second statement said UN Security Council sanctions “must … remain in place until Pyongyang takes concrete actions in respect of its international obligations.”

Global Affairs’ position flies in the face of South Korea, Russia, China and other nations that have brought up easing UN sanctions on North Korea. Washington, on the other hand, is seeking to tighten sanctions.

Partly to bolster the campaign to isolate North Korea a Vancouver Island based submarine was sent across the big pond at the start of the year. In April Ottawa also sent a CP-140 Aurora surveillance aircraft and 40 military personnel to a US base in Japan from which British, Australian and US forces monitor the North’s efforts to evade UN sanctions. A September Global Affairs Canada statement titled “Canada renews deployment in support of multinational initiative to enforce UN Security Council sanctions on North Korea” noted: “A Canadian Armed Forces maritime patrol aircraft will return to the region to help counter North Korea’s maritime smuggling, in particular its use of ship-to-ship transfers of refined petroleum products. In addition, Her Majesty’s Canadian Ship (HMCS) Calgary, on operations in the area as part of Canada’s continued presence in the region, was named to contribute to this effort.”

Rather than undermine Korean rapprochement, Ottawa should call for an official end to the 70-year old war and direct the Canadians in UNC to support said position. Canada should welcome peace in Korea even if it may trouble those seeking to maintain 30,000 US troops to “contain” China.