Category Archives: Japan

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.

From GM Potatoes to Glyphosate: Regulatory Delinquency and Toxic Agriculture

Food and environment campaigner Dr Rosemary Mason has just produced the report ‘Shockingly high levels of weedkiller found in popular breakfast cereals marketed for British children’. In this 68-page document, she draws from new research in the UK that mirrors findings from the US about the dangerous levels of glyphosate found in food, especially products aimed at children (glyphosate is the active ingredient in Monsanto’s weedicide Roundup). Readers can access this report here (which contains all relevant references).

Mason begins by reporting on research that significant levels of weedkiller were found in 43 out of 45 popular breakfast cereals marketed to US children. Glyphosate was detected in an array of popular breakfast cereals, oats and snack bars.

Tests revealed glyphosate was present in all but two of the 45 oat-derived products that were sampled by the Environmental Working Group, a public health organisation. Nearly three in four of the products exceeded what the EWG classes safe for children to consume. Products with some of the highest levels of glyphosate include granola, oats and snack bars made by leading industry names Quaker, Kellogg’s and General Mills, which makes Cheerios.

Back in April, internal emails obtained from the Food and Drug Administration (FDA) showed that scientists had found glyphosate on a wide range of commonly consumed food, to the point that they were finding it difficult to identify a food without the chemical on it. In response to these findings, however, The Guardian newspaper in the UK reported that there was no indication that the claims related to products sold outside the US.

In view of this statement by the Guardian, Mason was involved in sending samples of four oat-based breakfast cereals marketed for children in the UK to the Health Research Institute, Fairfield, Iowa, an accredited laboratory for glyphosate testing.

After testing the samples which were sent, Dr Fagan, the institute’s director, said:

The levels consumed in a single daily helping of any one of these cereals, even the one with the lowest level of contamination, is sufficient to put the person’s glyphosate levels above the levels that cause fatty liver disease in rats (and likely in people). (Access the Certificate of Analysis here.)

Just as concerning were results for two ‘organic’ products from the US that were also tested at the time: granola had some glyphosate in it and ‘organic’ rolled oats had even higher levels of the chemical.

Mason argues that the fact such high levels of glyphosate have been found in cereals in Britain should ring alarm bells across Europe, especially as the distribution of glyphosate and aminomethylphosphonic acid in agricultural top soils of the European Union is widespread.

A question of power

As in her previous documents, Mason describes how regulators in the EU and the UK relicensed Roundup for the benefit of the industry-backed Glyphosate Task Force. Even more alarming is that, on the back of Brexit, she notes that a US-UK trade deal could result in the introduction of Roundup ready GM crops in the UK. Indeed, high-level plans for cementing this deal are afoot.

Mason offers worrying data about the increasing use of biocides, especially glyphosate, as well as the subsequent destruction of the global environment due to their use. As usual, she produces a very data-rich report which draws on many sources, including official reports and peer-reviewed papers.

Of course, there is a strong focus on Monsanto. Aside from the use of glyphosate, she also documents the impact of the company’s presence in Wales, where she lives, with regard to the dumping of toxic chemicals (PCBs) from its manufacturing site there between 1949 and 1979, the effects of which persist and still plague the population and the environment.

Mason asks: “Monsanto has been bought up by Bayer, so the Monsanto name has disappeared but where are the Monsanto executives hiding?”

She is aware, of course, that such figures don’t have to hide anywhere. The company ‘got away with it’ in Wales. And its recent crop of executives received huge ‘golden handshakes’ after the Bayer deal despite them having perpetuated a degenerative model of industrial agriculture. A model that has only secured legitimacy by virtue of the power of the global agritech lobby to lock in a bogus narrative of success, as outlined in the report ‘From Uniformity to Diversity’ by The International Panel of Experts on Sustainable Food Systems.

As that report notes, locking farmers into corporate-dependent treadmills, state support of (export) commodity cropping via subsidies and the discounting of the massive health, environment and social costs of industrial agriculture ensures that model prevails and makes it appear successful. If you base your food regime on short-term thinking and a reductionist yield-output paradigm and define success within narrow confines, then the model is a sure-fire winner – for corporate growth (profit) if little else.

Without being able to externalise the health, social and environmental costs of its actions and products, this model would not be viable for the corporations involved. Widening the parameters to properly evaluate ‘success’ entails asking the industry questions that it finds very difficult to gloss over, not least what has been the cost of input-(biocide)dependent yields of commodities in terms of pollution, health, local food security and caloric production, nutrition per acre, water tables, soil quality and structure and new pests and disease pressures?

Why have African countries been turned from food exporters to food importers? Why is land in South America being used for Roundup Ready crops to feed the appetite for meat in rich countries, while peasant farmers who grew food for themselves and local communities have been displaced?

And what are the effects on once thriving rural communities; on birds, insects and biodiversity in general; on the climate as a result of chemical inputs and soil degradation; and what have been the effects of shifting towards globalised production chains, especially in terms of transportation and fossil fuel consumption?

The global food regime degrades public health and the environment, and it has narrowed the range of crops grown, resulting in increasingly monolithic, nutrient-deficient diets. Yet the powerful industry lobby calls for more deregulation and more techno-fixes like GMOs to ‘feed the world’. This is in spite of the fact that hunger and malnutrition are political: these phenomena are in large part the outcome of a global capitalist food regime that, with help from IMF/World Bank geopolitical lending strategies and WTO rules, has undermined food security for vast sections of the global population by creating a system that by its very nature drives inequality, injustice and creates food deficit areas.

Moving to a more sustainable model of agriculture based on localisation, food sovereignty and agroecology calls for a different world view. Proponents of industrial agriculture are resistant to this because it would harm what has become a highly profitable system based on the capture of political, research and media institutions.

And this is where we return to Rosemary Mason. If there is an overriding theme within her work over the years, it is corruption at high levels which facilitate much of the above. For instance, she notes the determination of the UK government, working hand in glove with global agribusiness, to ensure certain biocide products remain on the market and to help major corporations avoid any culpability for their health- and environment-damaging practices and chemicals.

Mason and various whistleblowers and writers have over the years described how these corporations have become institutionally embedded within high-profile public bodies and scientific research policy initiatives. Regulatory delinquency, institutionalised corruption and complete disregard for the health and well-being of the public is the order of the day.

GMOs and a post-Brexit deal with the US

If the UK is about to introduce GM crops into its fields on the back of a post-Brexit deal with the Trump administration, then it should take heed of what the ex-director of J.R. Simplot and team leader at Monsanto Dr Caius Rommens says in his new book:

The main problem about the current process for deregulation of GMO crops is that it is based on an evaluation of data provided by the developers of GMO crops. There is a conflict of interest. I propose that the safety of GMO crops is assessed by an independent group of scientists trained at identifying unintended effects.

This former high-level Monsanto researcher of potatoes now acknowledges that genetic engineers had limited insight into the effects of their experiments. Genetic engineering passes off the inherent uncertainty, unintended consequences and imprecision of its endeavours as unquestionable certainty. And the USDA accepts industry information and reassurances.

After finding that most GMO varieties of potatoes that he was involved in developing were stunted, chlorotic, mutated or sterile, and many of them died quickly, Rommens renounced his genetic engineering career and wrote a book about his experiences, ‘Pandora’s Potatoes: The Worst GMOs’.

In an interview with GMWatch, Rommens is asked why regulators in the US, Canada and Japan, which have approved these potatoes, are ignoring these aspects.

Rommens responds:

The standard tests needed to ensure regulatory approval are not set up to identify unintended effects. They are meant to confirm the safety of a GM crop, not to question their safety. None of the issues I address in my book were considered by the regulatory agencies.

A damning indictment of regulatory delinquency based on ‘don’t look, don’t find’. GMOs have nonetheless become the mainstay of US agriculture. Now the industry is rubbing its hands in anticipation of Brexit, which would pry the UK from the EU and its precautionary principle-based regulation of GMOs.

The push to open up Britain to globalisation in the 1980s ushered in a free-for-all for global capital to determine the future direction of a deregulated UK. Three decades down the line, the consequences are clear for food, agriculture, democracy and public health. The worrying thing is that thanks to Brexit, it could be the case that even worse is yet to come!

Remarks by Shinzo Abe to the 73rd Session of the United Nations General Assembly, by Shinzō Abe

Mr. Chairman, ladies and gentlemen, I have been accorded the privilege of continuing to serve as Japan's helmsman for the next three years. As I address the General Assembly today for the sixth consecutive year, I do so with a feeling of renewed resolve. In the three years to come, I will do my very best to strengthen the free trade system. I will likewise do everything in my power to clear the postwar structure from Northeast Asia. Serving as a flag bearer for free trade In my view, the (...)

Central Banks Have Gone Rogue, Putting Us All at Risk

Central bankers are now aggressively playing the stock market. To say they are buying up the planet may be an exaggeration, but they could. They can create money at will, and they have declared their “independence” from government. They have become rogue players in a game of their own.

Excluding institutions such as Blackrock and Vanguard, which are composed of multiple investors, the largest single players in global equity markets are now thought to be central banks themselves. An estimated 30 to 40 central banks are invested in the stock market, either directly or through their investment vehicles (sovereign wealth funds). According to David Haggith on Zero Hedge:

Central banks buying stocks are effectively nationalizing US corporations just to maintain the illusion that their “recovery” plan is working . . . . At first, their novel entry into the stock market was only intended to rescue imperiled corporations, such as General Motors during the first plunge into the Great Recession, but recently their efforts have shifted to propping up the entire stock market via major purchases of the most healthy companies on the market.

The US Federal Reserve, which bailed out General Motors in a rescue operation in 2009, was prohibited from lending to individual companies under the Dodd-Frank Act of 2010; and it is legally barred from owning equities. It parks its reserves instead in bonds and other government-backed securities. But other countries have different rules, and today central banks are buying individual stocks as investments, with a preference for big tech stocks like Amazon, Apple, Facebook and Microsoft. Those are the stocks that dominate the market, and central banks are bidding them up aggressively. Markets, including the US stock market, are thus literally being rigged by foreign central banks.

The result, as noted in a January 2017 article on Zero Hedge, is that central bankers, “who create fiat money out of thin air and for whom ‘acquisition cost’ is a meaningless term, are increasingly nationalizing the equity capital markets.” At least they would be nationalizing equities, if they were actually “national” central banks. But the Swiss National Bank, the biggest single player in this game, is 48% privately owned; and most central banks have declared their independence from their governments. They march to the drums not of government but of big international banks.

Marking the 10th anniversary of the 2008 collapse, former Fed chairman Ben Bernanke and former Treasury secretaries Timothy Geithner and Henry Paulson wrote in a September 7 New York Times op-ed that the Fed’s tools needed to be broadened to allow it to fight the next anticipated economic crisis, including allowing it to prop up the stock market by buying individual stocks. To investors, propping up the stock market may seem like a good thing; but what happens when the central banks decide to sell?  The Fed’s massive $4 trillion economic support is now being taken away, and other central banks are expected to follow. Their US and global holdings are so large that their withdrawal from the market could trigger another global recession. That means when and how the economy will collapse is now in the hands of central bankers.

Moving Goal Posts

The two most aggressive central bank players in the equity markets are the Swiss National Bank and the Bank of Japan.  The goal of the Bank of Japan, which now owns 75% of Japanese exchange-traded funds, is evidently to stimulate growth and defy longstanding expectations of deflation. But the Swiss National Bank is acting more like a hedge fund, snatching up individual stocks because “that is where the money is.” About 20% of the SNB’s reserves are in equities, and more than half of that is in US equities. The SNB’s goal is said to be to counteract the global demand for Swiss francs, which has been driving up the value of the national currency, making it hard for Swiss companies to compete in international trade. The SNB does this by buying up other currencies, and it needs to put them somewhere, so it is putting the money in stocks.

That is a reasonable explanation for the SNB’s actions, but some critics suspect other motives. Switzerland is home to the Bank for International Settlements, the “central bankers’ bank” in Basel, where central bankers meet regularly behind closed doors. Dr. Carroll Quigley, a Georgetown history professor who claimed to be the historian of the international bankers, wrote of this institution in Tragedy and Hope in 1966:

[T]he powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole.  This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences.  The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.

The key to their success, said Quigley, was that they would control and manipulate the money system of a nation while letting it appear to be controlled by the government. The economic and political systems of nations would be controlled not by citizens but by bankers, for the benefit of bankers. The goal was to establish an independent (privately owned or controlled) central bank in every country. Today, that goal has largely been achieved.

In a paper presented at the 14th Rhodes Forum in Greece in October 2016, Dr. Richard Werner, Director of International Development at the University of Southampton in the UK, argued that central banks have managed to achieve total independence from government and total lack of accountability to the people, and that they are now in the process of consolidating their powers. They control markets by creating bubbles, busts, and economic chaos. He pointed to the European Central Bank, which was modeled on the disastrous earlier German central bank, the Reichsbank. The Reichsbank created deflation, hyperinflation, and the chaos that helped bring Adolf Hitler to power. The problem with the Reichsbank, says Werner, was its excessive independence and its lack of accountability to German institutions and Parliament. The founders of post-war Germany changed the new central bank’s status by significantly curtailing its independence. Werner writes, “The Bundesbank was made accountable and subordinated to Parliament, as one would expect in a democracy. It became probably the world’s most successful central bank.”

But today’s central banks, he says, are following the disastrous Reichsbank model, involving an unprecedented concentration of power without accountability. Central banks are not held responsible for their massive policy mistakes and reckless creation of boom-bust cycles, banking crises and large-scale unemployment. Youth unemployment now exceeds 50 percent in Spain and Greece. Many central banks remain in private hands, including not only the Swiss National Bank but the Federal Reserve Bank of New York and the Italian, Greek and South African central banks.

Banks and Central Banks Should Be Made Public Utilities

Werner’s proposed solution to this dangerous situation is to bypass both the central banks and the big international banks and decentralize power by creating and supporting local not-for-profit public banks. Ultimately, he envisions a system of local public money issued by local authorities as receipts for services rendered to the local community. Legally, he notes, 97 percent of the money supply is already just private company credit, which can be created by any company, with or without a banking license. Governments should stop issuing government bonds, he says, and instead fund their public sector credit needs through domestic banks that create money on their books (as all banks have the power to do). These banks could offer more competitive rates than the bond markets and could stimulate the local economy with injections of new money. They could also put the big bond underwriting firms that feed on the national debt out of business.

Abolishing the central banks is one possibility, but if they were recaptured as public utilities, they could serve some useful purposes. A central bank dedicated to the service of the public could act as an unlimited source of liquidity for a system of public banks, eliminating bank runs since the central bank cannot go bankrupt. It could also fix the looming problem of an    unrepayable federal debt, and it could generate “quantitative easing for the people,” which could be used to fund infrastructure, low-interest loans to cities and states, and other public services.

The ability to nationalize companies by buying them with money created on the central bank’s books could also be a useful public tool. The next time the megabanks collapse, rather than bailing them out they could be nationalized and their debts paid off with central bank-generated money. There are other possibilities. Former Assistant Treasury Secretary Paul Craig Roberts argues that we should also nationalize the media and the armaments industry. Researchers at the Democracy Collaborative have suggested nationalizing the large fossil fuel companies by simply purchasing them with Fed-generated funds. In a September 2018 policy paper titled “Taking Climate Action to the Next Level,” the researchers wrote, “This action might represent our best chance to gain time and unlock a rapid but orderly energy transition, where wealth and benefits are no longer centralized in growth-oriented, undemocratic, and ethically dubious corporations, such as ExxonMobil and Chevron.”

Critics will say this would result in hyperinflation, but an argument can be made that it wouldn’t. That argument will have to wait for another article, but the point here is that massive central bank interventions that were thought to be impossible in the 20th century are now being implemented in the 21st, and they are being done by independent central banks controlled by an international banking cartel. It is time to curb central bank independence. If their powerful tools are going to be put to work, it should be in the service of the public and the economy.

• First published on Truthdig.com.

The Long March to Post-Capitalist Transition: Pan-Africanist Perspectives

The following talk was given by Ameth Lô in a French-language panel, “L’aurore de notre libération,” in Montreal on May 20, 2018, at “The Great Transition: Preparing a World Beyond Capitalism.”

*****

The centenary of the October 1917 Russian revolution, a world-shaking historic event, was an occasion for celebration throughout the world.

Many diverse interpretations are advanced as to its success in achieving a radical transformation of society, both in terms of its history and its overall impact. Nonetheless, there is no denying that this event altered forever the course of history.

For Black peoples, this revolution arrived just over a century after the victory in Haiti in 1804. That event was the first massive and successful revolt of Black slaves, and an important step toward the long-overdue abolition of slavery worldwide.

The establishment of the first Black republic in the Northern Hemisphere emerged from an extended process of resistance to oppression, marked by massive slave revolts on the plantations of Jamaica, Brazil, and elsewhere. Even today, Haiti continues to pay the price for its audacity and steadfastness, for which it has never been forgiven by proponents of the slave system. This dramatic breakthrough later contributed to achievement of a collective consciousness among Blacks.

Indeed, these events demonstrated that freedom comes only through struggle. That is how Blacks laid the foundations for pan-Africanism throughout the African diaspora. Brought to the fore by figures such as the great Marcus Mosiah Garvey, W.E.B. Dubois, Edward Blyden, and many others, this movement was linked to the struggles of workers and oppressed peoples across Europe and beyond, which culminated in two historic revolutions:

  • The French Revolution of 1789.
  • The Bolshevik Revolution of October 1917.

During this process two historic currents, the international Communist movement and pan-Africanism, established strong ties, forged through suffering and resistance. This is not to deny that there were occasional conflicts, resulting from the exigencies of episodic struggles and underlying strategy.

In what follows, we will attempt to illustrate how these two currents, which evolved almost simultaneously over the course of almost a century, became interrelated. This inquiry will reveal a perspective for a transition toward a world with increased justice and greater capacity to assure the survival of the human species and of our planet – in a word, a better world, free from the system of domination that victimizes Black peoples around the world. Most of oppressed peoples live in countries at the periphery of the world capitalist system, but they also are present as layers of common people in the metropolitan countries.

Communism and Pan-Africanism: A Zigzag Relationship

Let us note first of all that Pan-Africanism emerged within the African diaspora, that is, outside the continent. The dire conditions faced by Black peoples during several centuries of slavery provided a fertile ground for emergent revolts. These uprisings in turn gave rise to Pan-Africanism as an ideological tool for the liberation of oppressed Black peoples. It should be noted that millions of Blacks worked for hundreds of years without any form of payment – that is, for nothing. This servitude made possible the industrial revolution and the acceleration of capitalism’s development as a global system, spreading out from its initial strongholds in Europe and North America.

The international Communist movement, from its foundation in 1919, was committed to struggle on behalf of the oppressed and exploited worldwide. It thus took note of the conditions of Black peoples and solidarized with their struggles, not only in the African continent but also in countries like the United States where racial segregation was at its peak from 1920 to 1924. Brief passages in the Communist International archives take note of the struggles carried out by Blacks not only in the diaspora but in countries subjected to colonial domination in Africa. The Communist movement’s statement on African liberation, adopted in 1922, was markedly pan-Africanist in inspiration. Indeed it was written by Black delegates who were strongly influenced by the movement led by Marcus Garvey.

In the years that followed, however, this principled position was subject to several mutations, caused by contradictions internal to the socialist movement. In addition, the difficulties were aggravated by complications imposed on national liberation movements in the Cold War context, where conflicts both between and within alliances often took priority over ideologically principled positions with respect to unconditional support for the struggles of colonial peoples for self-determination. These struggles continued throughout the rise of fascism in Europe, grew more intense in the 1930s, and found expression in the anti-colonial wars and the defeat of Apartheid in Africa. The outcome of these wars played a central role in dismantling colonial structures and heralding a period of decolonisation.

During this development, a crucial role was played by the large number of Africans that took part in freeing Europe from Hitler’s claws. Conscript soldiers from across all of West Africa were organized in the Tirailleurs sénégalais (Senegalese Sharpshooters). Their courage and their decisive contribution has never received its proper reward. Quite to the contrary, and upon their discharge form service, when these soldiers at the end of 1944, asked to receive their demobilization payment, the French colonial authorities on December 1, massacred dozens –  hundreds  of these protesters. This crime took place at the Thiaroye camp a few miles from Dakar, capital of Senegal, and is known today as “the massacre of Thiaroye.”

Cold War, National Liberation Movements, and Internationalist Solidarity

Among the precursors of the pan-Africanist movement was George Padmore, a native of Trinidad and Tobago who came to the United States as a young student. He quickly joined the U.S. Communist Party and played a significant role in the international Communist Movement, where he worked for the goals of pan-Africanism. Assigned as a revolutionary cadre to work in the Soviet Union and Germany, he nonetheless cut his ties with this movement in 1934. Profound disagreements had arisen with regard to the decolonization of Africa, still under the yoke of the old colonial empires, above all those of Britain, France, and Portugal.

During the 1930s and after, the Communist movement sought to align its course regarding decolonization with its own interests in terms of positioning itself in the contest under way among the Western powers. This process convinced progressive pan-Africanists of the need to take their distance from the Communist movement, achieve autonomy of thought and action, and steer their course in conformity with the interests of oppressed Black peoples. In a word, they had to rely above all, on their own strength.

This is the context that led Padmore, who had enjoyed a measure of success in keeping the colonial question on the agenda of the Communist movement, to leave it in 1934 and return to Britain. There he met C.L.R. James, his childhood friend, who was quite active both in Trotskyist circles and in the Black community in London.

In 1936, Italy invaded Ethiopia, which along with Liberia was the only African country that had succeeded until that point at avoiding colonization. The Italian attack had great symbolic significance. It alerted the African diaspora within Europe to the need not only to mobilize against this invasion but also to hasten the organization of nationalist movements with a pan-Africanist outlook in order to speed the end of colonialization.

The Black students in Europe were already active during this period and were laying the foundations for “returning to their roots” – that is, of going back to Africa in both the cultural and political sense for the liberation of their peoples. Among the more prominent currents was the FEANF (Federation of Students from French-Speaking Black Africa). In Portugal, there were students that united around the “Case Africa,” among whom were the majority of leaders who organized and directed national liberation struggles in the then-Portuguese colonies of Angola, Mozambique, Guinea-Bissau, and Cape Verde (Eduardo Mondlane, Agostinho Neto, Amilcar Cabral).

In Britain, this current was based on figures linked to a structure called IASB (International African Service Bureau), among whom were C.L.R. James; Ras Makonen of British Guyana; Jomo Kenyatta, the first president of Kenya; Kwame Nkrumah, father of Ghana’s independence, whom James had introduced to Padmore; and others.

The outbreak of World War 2 led to a breach between the pan-Africanists and the Communist movement. The official line advanced by Moscow from 1941 was to support the war against the Nazi forces and to postpone anticolonial struggles until a later date. Ironically, the Soviet Union had been diplomatically aligned with Germany from 1939 until 1941. Obviously, this approach could not win favour among the pan-Africanists, given that almost all the African colonies were under the yoke not of Germany but of the countries that Moscow now viewed as its allies against Hitler.

Once again, the specific conditions in which the struggle developed globally made clear to the pan-Africanists the path to follow and the need to retain a degree of autonomy, seeking to base the liberation struggle on their own forces, without closing the door to forms of internationalist solidarity that were truly disinterested.

Somewhat later, after the end of World War 2, close and deep ties with internationalist solidarity movement were re-established to support the African peoples in the struggle against colonialism’s last bastions in Africa. Che Guevara’s revolutionary mission in the Congo (1965) fell short of success, as did his expedition to Bolivia (1966-67). Yet these setbacks did not dissuade Cuba from remaining true to its ardent desire to support Africa in its moments of peril.

This tradition also found expression some years later in Cuba’s close collaboration with Burkina Faso during the short revolutionary experience led by Thomas Sankara and his comrades between 1984 and 1987.

The historic battle of Cuito Cuanavale (1987-88), in which Cuban soldiers fought side by side with guerrillas of liberation movements in Southern Africa, succeeded in routing the army of the racist apartheid system in South Africa. This victory opened the road to Namibian independence, freedom for Nelson Mandela, and South Africa’s first multiracial elections in 1994.

South Africa’s racist regime, backed by consistent support from the Western imperialist powers of Europe and by the USA, then posed a mortal danger to the African peoples. The victory in Angola constituted an initial decisive step toward removing this danger. Yet despite this victory’s importance, it did not end the struggle, given that the power of large-scale capital in South Africa has not been ended and still controls the decisive sectors of its economy.

Cuba demonstrated to the world its celebrated generosity, despite its limited resources and vulnerability as a state under siege by imperialism. Cuba thus brought back to life, a half-century after the fact, the initial vision of internationalist solidarity that prevailed in the first years of the international Communist movement after the triumph of the Bolshevik revolution.

During those years, prominent progressive activists and pan-Africanists such as Lamine Senghor (Senegal), Guarang Kouyaté (Mali), and Messali Hadj (Algeria) took part in the Brussels congress of the Anti-Imperialist League (1927), whose honorary president was the celebrated scientist Albert Einstein and which spoke in the name of all the colonial peoples oppressed by imperialism. The congress already prefigured, in embryonic form, the movement of non-aligned countries that was launched by the Bandung conference in 1955. The Non-Aligned Movement brought together the most prominent leaders of dozens of African and Asian countries, including Gamal Abdel Nasser (Egypt), Jawaharlal Nehru (India), Soekarno (Indonesia) and Zhou Enlai (China). The gathering marked a decisive step in the decolonization of the Global South.

It must be noted, however, that during this entire period of anticolonial struggle by national liberation movements in Africa, they suffered from the impact of ideological rivalries within the Communist movement. Sometimes liberation movements acted as mouthpieces for this or that Communist current. Nationalist, pan-Africanist, and progressive movements in Africa became fragmented along the lines of cleavage that then prevailed in the so-called socialist camp. These currents failed to overcome their differences and to unite their scattered forces in a massive movement capable of undertaking the sweeping decolonization needed to make possible the transition from a colonial state to an independent state. Even today, the aftermath of these divisions represents a continuing barrier to the urgent unification of forces in a united front capable of countering imperialism’s aggressive restructuring and responding to present-day challenges.

Left-wing forces in Latin America have succeeded in creating such united fronts. This surely should convince pan-Africanists and progressives of the need to overcome the wounds inflicted by past divisions. A new era in the struggles of our peoples must be opened up by forces that transcend the limits of the neo-colonial states. The fact that many activists span both these two historic movements can be an asset in unifying the existing pan-Africanist and socialist nuclei. Such a reorganization is a basic precondition in advancing toward new horizons of progress and – why not? – a post-capitalist transition.

But what is the present state of the pan-Africanist movement and of the socialist and communist forces in Africa and in the diaspora?

The Left and the Pan-Africanist Movement: Their Present Reality

Before addressing the prospects for such a transition, we must first carefully assess the present state of pan-Africanist and socialist forces. The torch of resistance in Africa to the capitalist system and its expansion was carried for a time by the national liberation movements in southern Africa and the former Portuguese colonies. Here we saw promising attempts at a radical transformation beyond the limits of the neo-colonial state. They were disrupted, however, by murderous destabilization organized by imperialism acting through local agents. Samora Machel in Mozambique, Amilcar Cabral in Guinea-Bissau, Steven Bantu Biko and Chris Hani in South Africa, Patrice Lumumba in the Congo – all were cut down by imperialism. This halted temporarily every effort at radical transformation. The systematic assassination of every anti-imperialist leader created a vacuum, a lull that has lasted several decades.

During this period capitalism’s great financial institutions recovered their vigor and, little by little, dismantled all the gains that had been achieved through the sacrifices of courageous patriots loyal to the ideals of pan-Africanism and socialism. The only exception to this extended lull was the leap forward registered by progressive forces led by Maurice Bishop and the New Jewel Movement in Grenada (1979) and Thomas Sankara in Burkina Faso (1984). Ultimately, the fall of the Berlin Wall (1989) further disoriented and finished off forces already weakened by internal disputes regarding ideological positioning and by the inadequacy of their roots among the popular masses of Africa.

Nonetheless, the South African Communist Party, one of the oldest on the continent, succeeded in playing an important role in destroying the Apartheid system (1994) and in forging a fruitful partnership with nationalist forces (the ANC) and the workers’ movement organized in strong unions such as COSATU (Congress of South-African Trade Unions).

The present state of the pan-Africanist and socialist forces – enormously fragmented into still embryonic nuclei – is not favourable for the emergence of a movement capable of mounting a serious challenge to present-day imperialism. New struggles have arisen; popular revolts have broken out that overturned the regimes of Ben Ali in Tunisia and Mubarak in Tunisia and of Blaise Compaore in Burkina Faso.

Will we see the emergence of new leaderships capable of doing the necessary to build political movements sufficiently prepared, organizationally and ideologically, to face the dangers posed today? That task remains to be accomplished. In the meantime, the absence of vanguard movements sufficiently rooted in the masses could well explain in part the inability of the various popular revolts mentioned above to grow over into full-fledged revolutions.

The Sankara experience: A model for our future.

During the period following the national liberation movements, the revolution in Burkina Faso stands out as the most relevant case of an attempt to break away from the colonial/capitalist system. This revolution drew its strength from both its anti-imperialist orientation and its deeply pan-Africanist inspiration.

Burkina Faso is a small country of the West-African Sahel, characterized by extreme poverty. It is wedged into a region often afflicted by periods of drought that drive its population to emigrate into Ivory Coast and other countries. For many years, Burkina Faso was mired in political upheavals stemming from the fierce struggles among elites for control over the state apparatus and the personal enrichment that it brings.

From the moment of revolution on August 4th 1983, when Thomas Sankara became president, the revolutionary leader and his comrades showed their colours through their solidarity with all struggles of oppressed masses around the world (Palestine, Western Sahara, etc.). They invited the people of Burkina Faso (the Burkinabé) to roll up their sleeves in building a foundation for endogenous and autonomous development, relying on their own efforts.

Although the revolution lasted only four years, it continues to provide a model to all youth in Africa and the world over who seek a better world, one based on humanism and solidarity, in a contest against imperialist dominance sustained by military or economic coercion and by devastating neoliberal policies that enable the masters of global financial capital to control the world.

The central goal of the Burkinabé alternative lies in meeting the needs of the African masses impoverished by decades of the punitive IMF’s “structural adjustment programs,” which imposes continual payments of so-called debt to sinister “funding agencies.”

Oftentimes, any project of revolutionary transformation encounters major obstacles. Nonetheless, many projects spearheaded by Sankara were not only accomplished, but qualitatively changed the Burkinabé population’s conditions of existence. With the help of Cuban volunteers and within the space of a few months, more than 2.5 million children were inoculated against the infectious diseases that plague the very young. Access to education more than doubled and increased to 22% from 10% in three years. During the same period, intensive efforts were made to counter desertification by planting ten million trees.

The event that had the greatest impact on consciousness was the institution of “Women’s Wednesdays,” in which men carried out women’s traditional household tasks. This initiative helped modify popular modes of thought previously shaped by traditional beliefs. It sought to make men more aware of the difficult conditions that women had to contend with every day in order to enable the family to live in decent conditions. Without such a change in thinking, the revolution cannot possibly embrace the population, since almost half of it now lives in conditions of servitude.

Many dikes were constructed to retain water, enabling the rural population to cultivate their land throughout the year and thereby increase their income. Ouagadougou, the capital, was transformed through the construction of new revolutionary housing developments and by an ambitious program to upgrade slum areas that had formerly been virtual ghettos. As regards culture, the emergence of people’s theatre and cinema made it possible to rally the population for the tasks of national reconstruction.

This promising experience had a tragic conclusion: the assassination of Sankara and the end of the revolution in October, 1987. This outcome should lead us to reflect more deeply on the type of organizational framework needed to carry such a radical project for the transformation of African societies to a successful conclusion.

In our view, there is no way around the necessity of building a broad progressive alliance, based on the project of an alternative society carrying out a radical transformation of a capitalist and/or neo-colonial society. To achieve this goal, we must break with the dogmatic positions that often obstruct efforts for consensus around what is essential. By unduly exaggerating such minor and/or secondary contradictions, such dogmatism contributes to undermining worthy initiatives, as in Burkina Faso and Grenada.

In addition, a systematic struggle is required against the elitism of petty bourgeois groupings made up of an intelligentsia cut off from the masses and popular culture, groupings that wallow in theoretical battles disconnected from concerns of the population. Finally, although every social experience has aspects that are universal, we must break with mimicry – the desire to impose such specific experiences on a social environment with its own historical reality.

For this reason, the present renewal of the pan-Africanist movement both within the continent and in the African diasporas can fulfill its great potential only if it unifies the task of rallying pan-African forces once more through popular struggles around the challenges faced by the popular masses, such as ongoing land seizures, economic partnership agreements, sovereign control of the currency, and resistance to heightened militarism and economic degradation driven by climate change.

Toward a Post-Capitalist Transition? Tasks and Perspectives

One hundred years after the Bolshevik revolution and fifty years after the end of colonialism in the formal sense, we still face the challenges of bringing a new world into being and making the transition to a post-capitalist society.

With the stagnation of the anti-imperialist movement in the south, free-market ideologists seized on the brief lull in radical struggles to declare and present neo-liberalism as the final victory of capitalism. Yet the inherent contradictions of the capitalist mode of production are still intact and continue to pose the same fundamental questions that will determine whether or not humanity survives. This period is characterized by a rapid deterioration of our ecological system and a deepening of disparities among different social layers – both within countries and at a global level; both within the countries of the South and in the advanced centres of the capitalist system.

Just as Karl Marx predicted, the capitalist mode of production has reached its limits and has today become a barrier to human development. Far from liberating working people by qualitatively reducing their hours of work, advanced robotization is pushing millions of proletarians into the army of the unemployed and the ranks of the lumpen proletariat.

Africa, whose fate is so central for pan-Africanism and for the world, is currently witnessing the massive seizure of the continent’s natural resources. This pillage is sustained by increased militarization, including through the presence of dozens of foreign military bases, which serve to protect the geostrategic interests of the imperialist powers. The post-colonial state’s very nature testifies to the fact that the process of independence remains incomplete. Added to this are questions of collective survival posed by so-called jihadist movements that, in fact, are all too often a creation by the very forces that claim to be combating them.

In reality, the instigators of the present organized pseudo-chaos act as “pyromaniac firemen” – ready to seize on sinister forces crouching in the shadows and press them into action. In this way, the imperialist forces seeking a new mode of domination, strive to make themselves indispensable on the continent in order to attain unfettered control of the continent’s immense energy resources. Countries of the “triad” – Western Europe, North America, and Japan – are dependent on their ongoing ability to draw on these resources almost without payment in order to maintain their countries’ standard of living.

In the Caribbean, the diasporic African population experiences a dependence on foreign food that grows day by day as a result of climate change, rising sea levels, and salination of their soils. Meanwhile, their economy is controlled by an outward-oriented tourist industry, foreign banks, and cruise ship companies. Added to that, agreements for unequal partnership with the European Union still prevent the emergence of local industry capable of competing with foreign multinationals.

U.S. imperialism has renewed its aggressive expansion with the goal of increasing the isolation of the so-called BRICS countries (Brazil, Russia, India, China, South Africa) through a well-orchestrated strategy of encirclement. Meanwhile, imperialism extends its tentacles in Africa by installing a host of military bases (AFRICOM plus French, German, Turkish, and Chinese bases). All this underlines the urgency of mounting a credible alternative that can lead the world to think in terms of going beyond present-day capitalist society. Even though weakened by the emergence of new blocs, the monopoly enjoyed by the Triad is not going to collapse in its own right.

On the other hand, during the past century, the world has achieved significant advances in scientific knowledge that, if oriented to the urgent needs of humanity’s majority, will enable us to realize the advent of a new society, capable of transforming the world of work and, consequently, of the social relations that arise from the division of labour. However, despite the potential for a qualitative transformation, present technological progress – and above all the present revolution regarding tools such as artificial intelligence – bears within it seeds that could produce quite the opposite effect. These tools could be focused above all on achieving increased and permanent control of citizens through cyber-surveillance and manipulation, minimization of productive labour, concentration on financial speculation, and the like. This control is exerted not only in the physical but also in the mental domain in order to stifle any thought of questioning the established order.

In sum, the nature of social life in the post-capitalist era will be determined in large measure by the way in which these recent technological advances are utilized.

It is thus imperative for both socialists and pan-Africanists to reconnect with the traditions of radical struggle on a transnational level for the emergence of a new society. We need to reconnect with viable forms of transnational solidarity in order to promote the class struggle of oppressed layers of the population. This course requires that the Eurocentric Left recognize that such deep-going shifts in the international relationship of forces will involve a lowering of the standard of living in the richest countries. These living conditions have been made possible only through the systematic pillage of resources from the countries of the South and from Africa in particular. Is the new Left prepared for such an eventuality? The future will tell.

On the other hand, these struggles will necessarily take new forms, given the capacity of the capitalist system to assure its survival through continual adjustment. Sources seeking an alternative must therefore also display the same capacity for adaptation in developing the tactics and strategies needed to attain their goals.

For Africa and the Caribbean, such a transition should involve a deepening of pan-Africanism, which must pose again the urgency of decisive steps toward creation of a federal state – a federation of Africa and its diaspora – which alone can counter the dynamic of domination that draws strength from the fragmentation of our peoples. The weak neo-colonial states into which they are now divided are equally incapable, individually, of assuring their own survival or of exercising the flexibility needed to negotiate in sovereign fashion how their country is inserted into the world system. Such a federation will also offer the sisters and brothers of the African diaspora in the Northern countries a chance to go back to their roots in Africa, if they so desire. Their contribution will be decisive in terms of their daily experience as an oppressed Black minority in the countries of Europe and North America.

All other approaches are illusory and incapable of seriously challenging the alliance of the bourgeoisie in imperialist countries, sustained by their multinationals, with the African elites charged with managing these pseudo-states. The masses are held hostage by the comprador elites, acting as a supplementary force and a buffer between the dominant forces of world capitalism and the popular classes engaged in struggle.

The outcome of these struggles is far from settled. We face a transition in which advances will be made at a varying tempo, sometimes slow, sometimes fast. But this tempo can only arise from the capacity of peoples in struggle to manage their development. If one thing is certain, it is what was said a few decades ago by the former president of Burkina Faso, Thomas Sankara: “Freedom comes only through struggle.” So Aluta Continua! The Struggle Continues.

Climate Change, Extreme Weather, Destructive Lifestyles

Throughout the world heat waves, flooding and uncontrollable wildfires have caused widespread havoc, lives have been lost, homes destroyed, livelihoods ruined.

Unprecedented levels of heat have been recorded in North America, Europe and Asia, as well as the Atlantic, Pacific and Indian Oceans. According to The UN Framework Convention on Climate Change (UNFCC) record cold May temperatures were registered in “northeastern Canada and the northern Atlantic Ocean, off the southern coast of Greenland.” Global temperatures for the first five months of the year were the highest on record for a La Niña year; higher temperatures, “lead to more frequent and long-lasting heat waves causing adverse environmental impacts.”

These extreme weather patterns are the ferocious signs and sights of climate change in 2018, and, because so little is being done to tackle the causes, year on year they become more and more intense. Planet Earth is becoming a world in which the extreme becomes the expected, the disastrous the everyday.

How bad must it get?

The year began with the coldest first week of January on record for numerous cities in eastern America; freezing temperatures and heavy snowfall swept across Europe in March as the “Beast From the East” hit. Britain was severely affected, with up to three feet of snow in some areas and temperatures down to minus 10ºC.

Floods have affected East Africa killing dozens of people, tropical cyclones hit Somalia, Djibouti, Yemen and Oman, dust storms killed hundreds in India, and Pakistan had an intense heat wave with temperatures exceeding 40ºC. Heavy rains and 70 mph winds in Bangladesh caused landslides, deaths and injuries. California had the largest wild fires ever recorded, and down under, Australia is becoming the ‘Land of Drought’ according to the Prime Minister, Malcolm Turnbull.

A heat wave of unprecedented temperatures scorched Europe and Japan, where 40ºC (104ºF) temperatures were recorded, 30 people died and thousands needed medical treatment for heat related conditions. A month earlier Japan had some of the worst floods in its history, more than 200 people lost their lives and almost 2 million people were evacuated; the Caribbean is bracing itself for this year’s hurricane season, while “still recovering from last year’s devastation,” which, the UNFCC say, was “the costliest on record”.

The list of extreme weather events across the word is endless; extremes that are increasingly normal as the impact of man-made climate change become more and more apparent, and yet little is being done to address the primary causes. How bad does it have to become before substantive action is taken to reverse the terrible damage we are doing to the natural world?

The mechanics of climate change

Climate change is being triggered by global warming; Global warming, described by NASA as “the unusually rapid increase in Earth’s average surface temperature…primarily due to the greenhouse gases released as people burn fossil fuels” occurs, “when the atmosphere traps heat radiating from Earth toward space.” This happens when so-called greenhouse gases (Carbon Dioxide (CO2), Methane (CH4) and Nitrous Oxide (N2O), being the three main culprits) clog the lower levels of Earth’s atmosphere. This leads to a range of effects: The planet overall becomes warmer (average ground temperature rises), causing “extreme weather events and other severe natural and societal impacts” to become more frequent; glaciers in the Arctic region melt sending huge quantities of water into the ocean, which raises the sea level, oceans are made warmer and expand, further contributing to rising levels. As the sea level rises land is flooded, cities, towns and villages are threatened, lives lost, homes destroyed, communities ripped apart, people displaced.

Man-made greenhouse gases (GGE) are produced by a range of sectors and activities: Animal agriculture produces the largest amount (18% of the total according to the UN, other sources put the figure much higher), followed by electricity and heat production, transportation and industry – all through burning fossil fuels – oil, coal and gas. GGEs have been increasing since the industrial revolution, leading to a rise in global ground temperatures, which to date has reached about 1ºC above pre-industrial levels. Temperatures continue to increase at around 0.17ºC per decade.

One degree doesn’t sound like much but, as the extreme weather events show, the effect of this modest rise on the climate is huge, the consequences far reaching, potentially catastrophic.

In 2015 the Paris Agreement on Climate Change was reached and signed by every country in the world; under President Trump America has since pulled out. Hailed as historic, its central aim is to keep global rises in temperature “well below 2 degrees Celsius above pre-industrial levels and to pursue efforts to limit the temperature increase even further to 1.5 degrees Celsius.” Even if these rather optimistic targets are met, a recent study by an international team of scientists writing in the journal, Proceedings of the National Academy of Sciences suggests, “there is a risk of Earth entering what the scientists call “Hothouse Earth” conditions.” The BBC report that the group believe 2ºC of warming “could turn some of the Earth’s natural forces [forests, oceans and land] – that currently protect us – into our enemies…As the world experiences warming, these carbon sinks could become sources of carbon and make the problems of climate change significantly worse.”

If this occurs they forecast the climate stabilizing at “a global average of 4-5°C higher than pre-industrial temperatures with sea level 10-60 m higher than today.” This would mean that some parts of the Earth would become uninhabitable. In order to avoid this nightmare scenario the authors make clear that “a total re-orientation of human values, equity, behavior and technologies is required. We must all become stewards of the Earth.” This requires a major shift in human attitudes.

Unhealthy destructive lifestyle

Climate Change and the environmental disaster in its various colors is the result of human activity and complacency; we have poisoned the oceans, rivers and streams, cleared 85% of the world’s tropical rainforests, mainly for livestock, and are turning healthy land into desert; we are filling the air we breathe with toxins, creating dead zones in the oceans and causing the eradication of species at an unprecedented rate. Collectively we seem to have no respect or love for the natural environment and whilst some people are acting responsibly, the majority fails to see the connection between lifestyle and disaster and appear content to treat the planet like a giant rubbish tip.

The natural order has been thrown into disarray by the widespread adoption of a selfish, destructive way of life: A particular lifestyle, or collection of related ‘lifestyle choices’, are responsible for the production of man-made greenhouse gases that are triggering the extreme weather patterns we are seeing all around the world.

Hedonism and consumerism sit at the heart of the unhealthy mode of living that is driving the catastrophe and making us ill; mankind’s relentless consumption of stuff, the vast majority of which is not needed, combined with an animal-based diet (common to 97% of the global population), has created a cocktail of chaos within the natural world, bringing about the greatest crisis in the history of mankind. It is a materialistic lifestyle that the global economy, and by extension the corporate state depends on and ceaselessly promotes. This is why, despite the intense urgency of the environmental issue, we hear little on mainstream media and virtually nothing from governments, who are more concerned with economic growth and petty domestic politics than the stability and health of the planet.

The harmony of the natural world has been thrown into chaos by the same approach to life that has separated us one from another, and fuelled internal conflict resulting in a global mental health epidemic. In all areas, where there should be unity and right relationship we see enmity, discord and disease. Restoring the planet to health and creating a world in which human beings can live healthy peaceful lives are inextricably linked. Both require a fundamental change in values, a shift away from divisive modes of living built on competition and greed to inclusive ways in which social/environmental responsibility is cultivated and embraced.

Such ideas are not new and are frequently championed, but the prevailing socio-economic ideology actively works to suppress such principles, and powerfully promotes values of division and selfishness. Despite this widespread conditioning, an unstoppable current of change can be seen sweeping the world; social responsibility is growing apace, and perennial values of goodness – cooperation, tolerance and sharing – are increasingly influencing the minds of men and women everywhere.

To galvanize this global movement a major public education program should be undertaken by governments and schools to increase awareness of climate change and lifestyle and create a sense of urgency and engagement. Change can be slow, but these are extraordinary times, and there is a growing recognition that if we unite all things are possible. If not, if we continue in the selfish, greedy, divisive ways of the past, the weather patterns will become more extreme and unpredictable, the air and waterways will become more toxic, loss of life will increase and the associated environmental ills will deepen. The choice is ours.