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Austerity Revisited: How Global Financiers Rigged the Bank Bailouts of the 1980s

Austerity Revisited: How Global Financiers Rigged the Bank Bailouts of the 1980s

By: Andrew Gavin Marshall

Originally posted at Occupy.com

20 May 2014

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In the first part of this Global Power Project series, I examined the origins and early evolution of the International Monetary Conference, an annual meeting (to be held June 1-3 in Munich) of several hundred of the world’s most influential bankers who gather in secrecy with the finance ministers, regulators and central bankers of the world’s most powerful nations. The second part looked at the role of the IMC in the lead-up to the 1980s debt crisis. Now, in Part 3, we examine the role the IMC played throughout that debt crisis which began in August of 1982.

At the 1982 International Monetary Conference, bankers noted that they had been cutting back extensively on loans to developing countries, with some leading bankers warning that the lending cut-backs could result in “aggravating the problems of countries already in economic difficulties and threatening to throw them into default” – which is exactly what happened a couple of months after that’s year’s conference.

A. W. Clausen, former CEO of Bank of America, spoke at the IMC in 1982 as then-president of the World Bank, and told the assembled bankers it was “an honour to be the first President of the World Bank to address the International Monetary Conference,” noting that, “themes of partnership and interdependence have repeatedly been at the center of our IMC meetings.” It was the subject Clausen wanted to address, “the tightening interdependence between the developed and the developing nations,” announcing “a new era of partnership between the World Bank and international commercial banks for helping the economies of the developing countries.”

Clausen told the bankers that “in order to develop a closer partnership with you, we intend to expand the International Finance Corporation [the investment arm of the World Bank] to explore the possibility of a multilateral insurance scheme for private investment, and to develop new mechanisms for attracting commercial bank co-financing.”

He also noted that the “fundamental objective of the World Bank” was “to help raise the standard of living of people, especially poor people, in the developing countries,” and argued that “people in developing countries will benefit from a closer partnership between the World Bank and international commercial banks.” Clausen was speaking roughly three months before Mexico announced its debt repayment problems, sparking the debt crisis, though he acknowledged that the developing world was experiencing a “balance-of-payments disequilibrium and debt-servicing difficulties.”

In addition, Clausen noted that the affiliate organization of the World Bank, the International Finance Corporation, had a special purpose which was “to encourage productive private enterprises in developing nations” whose loans do not have to be guaranteed by governments, and which can take equity (or shareholdings) in corporations. Clausen noted that together with the IMF and the General Agreement of Tariffs and Trade (GATT), the World Bank “has helped to build an interdependent global economy,” adding: “International commercial banking depends on the relatively integrated, dynamic, and peaceful world economy that these official institutions have nurtured.”

Thus, he suggested, “we should now develop the complementarity between the World Bank and international commercial banks into a closer relationship of collaboration,” and recommended “greater collaboration between [the] IFC and commercial banks,” which “has great potential for stimulating commercial investment in the developing countries.” All of the initiatives Clausen proposed revolved around the basic objective of increasing “the collaboration of the international banking community” with the World Bank, in order “to assist poor nations to better manage their economies through the establishment of economic policies that are conducive to economic growth and development” and thus “bringing them fully into the global economy.”

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The Debt Crisis

In the first full year of the international debt crisis that tore Latin America and other developing countries into financial ruin – with entire populations pushed overnight into poverty through austerity measures that were demanded by the IMF and the global banks, in return for additional loans and debt rescheduling – the more than 200 global bankers at the International Monetary Conference met in Belgium where they were “treated like royalty,” met at the airport by “special hostesses” and were then chauffeured in Mercedes limousines to the Hyatt Regency Hotel.

The bankers attended a cocktail party at the Palais d’Egmont and hosted the King of Belgium for an afternoon lunch. It was in this “fairy-tale atmosphere,” as the New York Times described it, that the world’s top bankers met with government officials and central bankers and enjoyed “the luxury of thinking about the grand problems of world finance, unfettered by the real world’s concerns.”

The bankers at the 1983 conference agreed that the major debtor countries, in particular Brazil and Mexico, would need time to reshape their economies, with estimates ranging from three to seven or eight years of austerity, and various “structural reforms” designed to enforce neoliberal economic policies upon those entire populations. James Wolfensohn, a former partner at Salomon Brothers who started his own consultancy (and later went on to become President of the World Bank), delivered a popular speech at the IMC recommending that there could be no one solution to the debt crisis, but that each country would have to be handled on a case-by-case basis.

The banker William S. Ogden, a former vice chairman of Chase Manhattan, presented another popular speech at the IMC in which he explained that what was needed to resolve the debt crisis was “sustained world economic growth, avoidance of protectionism, increased government aid to the third world and more disciplined economic policies among the developing countries.” In other words, harsh austerity measures.

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That very same year, Ogden was in the midst of creating a unique organization of international banks and bankers to represent their collective interests as a global community in the face of the debt crisis. That organization came to be known as the Institute of International Finance, itself the subject of a previous set of exposés in the Global Power Project.

At the 1984 meeting of the International Monetary Conference (IMC), a special meeting occurred among some of the top banks that held a large percentage of Mexico’s debt. They participated in a “closed meeting” with major central bankers and finance officials, including representatives of the IMF, who recommended that the banks lower their interest rates on loans to Mexico in order to reduce pressure on the country. Walter B. Wriston, chairman of Citicorp, who had previously opposed any concessions to the impoverished nations in crisis, at this point appeared willing to adhere to some reductions in interest rates for Mexico.

The closed meeting was also attended by Willard C. Butcher, Jr., the chairman of Chase Manhattan; John F. McGillicuddy, chairman of Manufacturers Hanover Trust Company; Lewis T. Preston, chairman of J.P. Morgan & Company; Walter V. Shipley, chairman of Chemical Bank; Wilfried Guth, managing director of Deutsche Bank; Guido R. Hanselmann, executive board member of Union Bank of Switzerland (UBS), and Sir Jeremy Morse, chairman of Lloyds Bank of London.

The following day, the international banks announced that they would agree to negotiate a long-term debt solution for Mexico. Included in the decision as well was the IMF managing director, Jacques de Larosiere; the chairman of the Federal Reserve, Paul Volcker; and a special representative of the banks, Citibank Vice Chairman William R. Rhodes, who announced the decision to negotiate on behalf of the banks and who was personally responsible for chairing multiple “bank advisory committees” that negotiated debt rescheduling with various countries in Latin America.

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Three years later, in 1987, Mexico was still caught in a painful crisis and the world’s bankers were still meeting for the IMC in luxurious surroundings, partaking in opulent social events to discuss the issue of world debt problems. The more than 200 bankers at the meeting expressed their frustration with the problems of the global monetary system, the instability of the floating exchange rate system, and currency crises. William Butcher, that year’s chairman of the IMC, warned that the global monetary system would not “correct itself” and instead the search for a new and more stable system “must be intensified.”

The most popular speech at the IMC that year was delivered by Japan’s vice minister of finance for international affairs, Toyoo Gyohten, who proposed the establishment of “some international mechanism” which would be responsible for managing international monetary crises, and would be required “to have at least several hundred billion dollars in order to influence the financial markets.”

At the next year’s meeting of the IMC, then-Chairman of the Federal Reserve, Alan Greenspan, spoke to the assembled bankers, explaining that further declines in the U.S. Dollar would not help American exports. His comments led to a rise in the Dollar, “greeted positively in the financial markets,” and stock and bond prices rose on Wall Street. The heads of the central banks of other major industrial nations, such as West Germany and Britain, were also present at the conference where collectively the central bankers “reiterated the need to keep inflation down as a way to continue worldwide economic growth” – a position met with great approval by the bankers present at the meeting.

At the 1989 meeting of the IMC, many of Mexico’s largest international lenders attended a special meeting after which they announced a $5.5 billion “aid” package (aka bailout) for Mexico in cooperation between Japanese banks, the IMF and the World Bank. But the so-called “aid packages” handed out by Western banks and international organizations to the crisis-hit developing nations were, in fact, bailouts for the major banks: the funds were given to the countries explicitly to pay the interest that they owed to the banks, while at the same time forcing those governments to implement strict austerity measures and other economic reforms.

William R. Rhodes, Citibank’s main official responsible for debt rescheduling agreements, was present at the meeting, which was also attended by Angel Gurria, the chief debt negotiator for Mexico. Rhodes stated that the meeting at the IMC “set the stage for rapid progress.” In the final part of the Global Power Project series on the International Monetary Conference, I examine the continued relevance of the IMC from 1989 to the present – including the bankers who composed its leadership, as well as a review of leaked documents pertaining to the 2013 meeting of the IMC in Shanghai.

Andrew Gavin Marshall is a 27-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost.

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How the International Monetary Conference Helped Fuel the 1980s Debt Crisis

How the International Monetary Conference Helped Fuel the 1980s Debt Crisis

By: Andrew Gavin Marshall

Originally posted at Occupy.com

14 May 2014

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Last week, in Part 1 of the Global Power Project’s investigations into the machinery behind the International Monetary Conference, I examined the history and evolution of the IMC from its founding by the American Bankers Association in 1954 to the global financial and monetary disruptions of the late 1970s.

The IMC, happening June 1-3 in Munich, brings together hundreds of top bankers with leading finance officials and central bankers from the world’s industrial powers to discuss major economic, financial and monetary issues of the day – and to form a consensus on policies for managing the world economic order. In part 2 of the series, I look at the role of the IMC in the lead-up to the 1980s debt crisis.

What Fueled the Debt Crisis?

The 1980s debt crisis erupted when Mexico announced in 1982 that it could no longer service its debts to Western, and primarily American, banks. This resulted in a crisis that quickly spread across Latin America, Africa and parts of Asia. The oil price rises of the 1970s had led to a surge in revenues for oil-producing nations, which had invested their surplus oil wealth in Western banks that then lent the money to poor, developing nations requiring oil in order to finance their industrialization.

Then, following the 1979 oil shocks, the Federal Reserve in the United States decided to dramatically increase interest rates. The result: interest payments on “third world” debts skyrocketed, ultimately forcing Mexico and other nations to seek bailouts in order to pay their interest to the world’s major banks.

At the 1980 International Monetary Conference meeting, two years before the debt crisis erupted, some of the world’s top bankers – particularly Wilfried Guth, the managing director of Deutsche Bank – warned that a “safety net” may be needed to bail out the major banks that lent money to the developing world. Chase Manhattan Chairman David Rockefeller, who also attended the meeting, agreed that such a “safety net” for the banks was “well worth considering.”

Other leading bankers warned that since the world’s major banks were big lenders to each other, there was “a danger that if one large institution were to fail, a chain reaction could be started that would topple other banks around the world.” (“A ‘Safety Net’ for Banks is Proposed,” New York Times, June 3, 1980).

An Exclusive Event

The June 1980 meeting of the IMC took place in New Orleans, to which The New York Times reported that “only the most elite of the world’s financiers are invited.” American participants at that year’s meeting included Treasury Secretary G. William Miller and Federal Reserve Board Chairman Paul A. Volcker, as well as the chairmen of America’s three largest banks: David Rockefeller (Chase Manhattan), A.W. Clausen (Bank of America) and Walter Wriston (Citibank). The New York Times noted that the IMC “has been a forum where the heavyweights of world finance often take off their gloves.” (“Bankers Meet in Discord,” New York Times, 2 June 1980).

The bankers who attended the conference to discuss issues of debt and poverty were greeted at the New Orleans airport by police officers who provided them with security and doubled as “porters and chauffeurs,” driving the bankers in unmarked police cars to their hotels. The IMC, which is presided over by a 15-member board that decides who gets invited to the yearly meetings, admits banks based upon their size and the scope of their international operations.

At this gathering, eight of the 15 board members were Americans, including Walter B. Wriston, chairman of Citibank; Willis W. Alexander, executive vice president of the American Bankers Association, and leading figures representing First National Bank of Chicago, Wells Fargo, Mellon Bank and Chemical Bank, among others (“The Talk of New Orleans: Agonies of World Banking,” New York Times, 8 June 1980).

Though official sessions of the meeting were closed to the press, in briefings afterward the bankers warned that some developing nations were having increasing difficulty paying interest on their debts to the big banks – and that although the situation had not yet reached crisis proportions, they were wary of what was to come. David Rockefeller declared an urgency “for official organizations, such as the International Monetary Fund, to increase their lending to oil-consuming countries,” and suggested that “private banks and the international institutions should work more closely together.”

Likewise, Wilfried Guth of Deutsche Bank presented a 35-page paper in which he stated that the global financial system was “fairly under control for 1980,” but warned that “critical developments are feared for 1981 and later” when many developing nations “will find it extremely difficult to raise the money they need to pay for oil and other essential imports, including food.” Powerful bankers and monetary officials at the conference widely supported Guth’s paper and presentation, with David Rockefeller warning that international loans given by commercial banks had already surpassed $1 trillion.

The global bankers noted that the underlying issue was “the huge transfer of wealth from the oil-consuming nations to the oil-producing nations,” and warned that “economic stability can be achieved only if the oil-consuming countries accept declines in their living standards” and “an indefinite recession” (“Oil Payment Worries Grow,” New York Times, 7 June 1980).

Meanwhile, the most popular person at the conference that year was a specially-invited guest named Milton Friedman, the University of Chicago economist known for his promotion of neoliberal economic orthodoxy. As the New York Times noted, “It seemed that just about everyone wanted to sit at Mr. Friedman’s lunch and dinner tables.” Friedman had been invited to the IMC to preside over a debate on nothing less than “how monetary policy should be designed and implemented.”

The 1980 IMC meeting seemed to bear formal fruition when Ronald Reagan assumed the presidency in January of 1981, as his new economic policies won “praise from at least one important foreign group – bankers.” The New York Times noted that the several hundred of the world’s top financiers from the IMC meeting “expressed understanding and support of even the most controversial of American monetary policies – the record interest rates that have strengthened the dollar and battered most foreign currencies as a result.”

It was the very same interest rate hikes that led to highly-indebted poor countries finding themselves unable to pay the increased interest on their loans – which pushed them into bankruptcy and the need for bailouts. But for global bankers, there was nothing but praise. Sir Jeremy Morse, chairman of Lloyds Bank of London one of those in attendance at the IMC, stated that, “In general, most people feel that high interest rates are appropriate to the inflationary position of the Western world, and are appropriate to the United States position.”

The only issue of bankers’ “irritation” with the Reagan administration, it seemed, was the fact that incoming Treasury Secretary Donald T. Regan – the Chairman and CEO of Merrill Lynch from 1971 to 1980 – had cancelled his trip to the IMC at the last minute. As many at the conference noted, it was “tradition” to have “a formal address by a senior American economic official.” The President of Wachovia, John G. Medlin Jr., commented, “I think he should have come … I don’t think he understood the importance of this group.”

In the absence of Regan, the responsibility of explaining official American economic policies fell to Federal Reserve Chairman Paul Volcker, himself a former official at Chase Manhattan where he had worked for David Rockefeller. Volcker stood up to the challenge and “was a great success among the bankers [at the IMC], many of whom expressed support for him.”

In the next installment of this series investigating the International Monetary Conference, I examine the role of the IMC throughout the 1980s debt crisis and its position as an important, influential forum that helped to articulate and definitively shape consensus around neoliberal Western economic policy.

Andrew Gavin Marshall is a 26-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project, chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a

Global Power Project: The Group of Thirty, Financial Crisis Kingpins

Global Power Project: The Group of Thirty, Financial Crisis Kingpins

By: Andrew Gavin Marshall

25 February 2014

The following article was originally posted on 18 December 2013 at Occupy.com

Following parts onetwo and three of the Global Power Project’s Group of Thirty series, this fourth and final instalment focuses on a few of the G30 members who have played outsized roles both in creating and managing various financial crises, providing a window on to the ideas, institutions and individuals who help steer this powerful global group.

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The Assassin of Argentina

Prior to 2008, one of the most notable examples of a highly destructive financial crisis took place in Argentina which, heavily in debt, faced a large default and was brutally punished by financial markets and the speculative assault of global finance, otherwise known as “capital flight.” Less known in the story of Argentina’s 1998 to 2002 economic catastrophe was the significant role played by just one man: Domingo Cavallo.

A longtime member of the Group of Thirty, Cavallo formerly served both as Governor of the Central Bank and Minister of Economy in Argentina. He has been referred to  by Pulitzer Prize-winning economic researcher Daniel Yergin as “one of the most influential figures in recasting the relationship of state and marketplace in Latin America.”

Between 1976 and 1983, Argentina, ruled by a ruthless military dictatorship, was marred by excessive human rights abuses and persecution of intellectuals and dissidents during the so-called “Dirty War” in which as many as 30,000 people were killed or disappeared . The terror was reminiscent of nearby Chile, where a coup that brought dictator Augusto Pinochet to power in 1973, with the help of the CIA, provided a petri-dish experiment in the implementation of neoliberal “reforms.” It was Chile’s dictatorship that set the example, and Argentina’s soon followed.

In a 2002 interview, Domingo Cavallo noted that, “The experience of Chile during the ’80s was very instructive, I think, for most Latin American economies, and many politicians in Latin America, because Chile was successful by opening up and trying to expand their exports and in general their foreign trade and getting more integrated into the world economy… And of course we used, particularly here in Argentina, the experience of Chile to go ahead with our own reforms.”

Asked about the association between economic “reforms” in Chile and the ruthless dictatorship that implemented them, Cavallo explained, “There were discussions on the feasibility of implementing market reforms in a democracy. But in 1990… the first democratic president after Pinochet maintained the reforms and also tried to improve on them [and] it was demonstrated that itwould be possible  to implement similar reforms under a democratic regime.”

What specific reforms was Cavallo referring to? Under Argentina’s military dictatorship, Cavallo served for one year as Governor of the Central Bank in 1982, where he was responsible for implementing  a state bailout of corporations and banks. After, Cavallo returned to academic life. But all that changed with the election of Carlos Menem in 1989, who served as president until 1999. In 1991, Menem appointed Cavallo as Minister for Economy, a position he held until 1996.

Cavallo led the neoliberal restructuring of Argentina: pegging the Argentine peso to the U.S. dollar, trying to reduce inflation, undertaking massive privatizations while opening up the economy to “free trade,” and deregulating financial markets. The New York Times in 1996 heaped praise on Cavallo for his “constructive” role in leading the economy “back to vitality and international respectability,” despite the fact that his reforms “brought high unemployment  and painful reductions in social programs.”

Another NYT article credited Cavallo for the “stability” brought to Argentina through his “economic miracle,” while noting, without irony, that Cavallo’s miracle had “left million of Argentines… without a safety net” and with record-high unemployment, the emergence of urban slums, abandoned street children, over-crowded food banks, homeless shelters in churches, and even some people who were forced to eat cats in desperation. The “miracle” was so great, in fact, that despite all of the so-called stability it facilitated, President Menem ultimately dismissed Cavallo to the jubilation of tens of thousands of protesters in the streets. Though the people were pleased, financial markets expressed their disapproval .

With multiple economic and financial crises erupting around the world and in neighboring nations, Argentina, which pegged its currency to the U.S. dollar, found it could no longer compete. The touted neoliberal reforms were taking a toll as the country plunged into recession. Menem was replaced in 1999 by President Fernando De la Rua, who quickly sought support from the IMF to help repay the country’s debts owed to foreign – largely American  – banks.

But Cavallo wasn’t out. In 2001, he was re-appointed as the country’s Minister of Economy just in time to receive emergency powers enabling him handle the country’s ongoing financial crisis that he helped to create . At that point, financial markets felt Argentina could not be trusted to repay its debt and the IMF refused to provide further loans, on the basis that the country had not implemented enough neoliberal reforms to meet its demands. The economy crashed and the “much-hated” Cavallo had to resign, as did the President, who fled by helicopter from the Casa Rosada as Argentines protested en masse .

Even the Federal Reserve Bank of San Francisco noted in 2002 that there was “some truth” to the view that “Argentina’s debt position would have been sustainable if only market uncertainty had not triggered a crisis.” But, it added, had Argentina made the effort asked of it to reduce its debt, it could have avoided  “potentially destabilizing shifts in market sentiment.”

Domingo Cavallo

Domingo Cavallo

America’s Crisis-Causers

The role played by former Federal Reserve Chairman Alan Greenspan in creating the conditions that led to the 2008 global financial meltdown is known to many. What is less known is that Greenspan, too, is a former member of the Group of Thirty. Greenspan did not work alone, of course, in his efforts to deregulate the financial system and spur the growth of the derivatives markets, which laid the groundwork for the worst financial crisis in modern times. Larry Summers, who then served as deputy secretary and later Secretary of Treasury under Bill Clinton, was also very helpful in this regard. Summers, too, is a current member of the Group of Thirty.

Currently serving as President Emeritus and as a professor at Harvard University, Summers was the former director of President Obama’s National Economic Council from 2009 to 2011. Previously, he was President of Harvard (2001 to 2009) and, prior to his positions during the Clinton administration he was Chief Economist at the World Bank (1991 to 1993). Currently, Summers is a member not only of the G30 but of the Council on Foreign Relations, the Trilateral Commission, and he was also a member of the Steering Committee of the Bilderberg Group.

While Chief Economist at the World Bank, Summers signed an infamous 1991 memo in which it was suggested that rich countries should dump their toxic waste and pollutants in the poorest African nations — because by the time the toxins spurred the growth of cancer in the local population, they would already statistically be dead due to already high mortality rates. The memo noted : “I think the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that.”

When Summers later went to work for the Clinton administration under Treasury Secretary Robert Rubin, he along with Rubin and Fed Chairman Greenspan formed the “Three Marketeers,” as Time referred to them, dedicated to  “inventing a 21st century financial system” where they placed their “faith [in] financial markets.”

In the final two years of the Clinton presidency, Summers served as the Treasury Secretary alongside his deputy and protégé, Timothy Geithner, another member of the G30 who would go on to make a mark on the financial crisis — largely by convincing President Obama to bail out the Wall Street banks that crashed the economy, with zero penalty to them. Under the Obama administration, Summers served for nearly two years as Chair of the National Economic Council and was a highly influential policymaker . In 2009, he had spoken at the highly influential ultra-conservative think tank, the Peterson Institute for International Economics, where he explained the administration’s approach to the economic recovery, noting that , “Our approach sought to go as much as possible with the grain of the market” as opposed to regulating markets.

When Summers left the Obama administration in late 2010, he returned to Wall Street and made a fortune  working for the hedge fund D. E. Shaw & Co. and Citigroup. This past summer, he was considered Obama’s favorite pick  to replace Ben Bernanke as Fed Chairman, but faced such stiff opposition within the Democratic Party that he withdrew his name, leaving Janet Yellen – the Vice Chair of the Fed and herself a former member of the Group of Thirty – to step in .

What we see, in this analysis of the Group of Thirty, are the connections between those in positions of power to respond to and manage economic and financial crises, and those in positions of power who created such crises. Naturally, as well, the G30’s membership includes numerous bankers who, as fortune had it, shared handsomely in the profits of those crises. Put simply, the G30 can be thought above all as an exclusive club of financial crisis kingpins. And it is a club, no doubt, that will continue to play a significant and not altogether helpful role in global financial management for years to come — or until something is done to stop them.

Andrew Gavin Marshall is a 26-year-old researcher and writer based in Montreal, Canada. He is project manager of The People’s Book Project , chair of the geopolitics division of The Hampton Institute, research director for Occupy.com’s Global Power Project and the World of Resistance (WoR) Report, and hosts a weekly podcast show with BoilingFrogsPost .

Corporate Culture and Global Empire: Food Crisis, Land Grabs, Poverty, Slums, Environmental Devastation and Resistance

Corporate Culture and Global Empire: Food Crisis, Land Grabs, Poverty, Slums, Environmental Devastation and Resistance

By: Andrew Gavin Marshall

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Corporate power is immense. The world’s largest corporation is Royal Dutch Shell, surpassed in wealth only by the 24 largest countries on earth. Of the 150 largest economic entities in the world, 58% are corporations. Corporations are institutionally totalitarian, the result of power’s resistance to the democratic revolution, which was begrudgingly accepted in the political sphere, but denied the economic sphere, and thus was denied a truly democratic society. They are driven by a religion called “short-term profits.” Corporate society – a state-capitalist society – flourished in the United States, and managed the transition of American society in the early 20th century, just as Fascists and Communists were managing transitions across Europe. With each World War, American society – its political and economic power – grew in global influence, and with the end of World War II, that corporate society was exported globally.

This is empire. The American military, intelligence agencies, and national security apparatus operate with the intention of serving U.S. – and now increasingly global – state and corporate interests. Wars, coups, destabilization campaigns, support for dictators, tyrants, genocides and oppression are the products of Western interaction with the rest of the world.

In the same sense that “God made man in his own image,” corporations remade society in their own interest; and with equal arrogance. Corporations and banks created or took over think tanks, foundations, educational institutions, media, public relations, advertising, and other sectors of society. Through their control of other institutions, they extend their ideologies of power – and the variances between them – to the population, to other elites, the ‘educated’ class, middle class, the poor and working class. So long as the ideas expressed support power, it’s ‘acceptable.’ It can extend critiques, but institutional analysis is not permitted. Ideas which oppose institutional power are ‘ideological’, ‘idealist’, ‘utopian’, and ultimately, unacceptable.

Corporate culture dominates our society in the West. Being inherently totalitarian institutions, the culture – and its institutions – become increasingly totalitarian. This is the response by private economic power to undo the achievements in human history which came through increased democracy in the political sphere. Corporations and banks seek to control and consume all things, to dominate without end.

The only reason corporations were and are able to be the defining cultural institution of the 20th and now 21st century, is because of their economic power. This is derived from exploitation: of resources, the environment, labour, and consumers. It is enforced with repression: the job of the state in the state-capitalist society, along with massive subsidies and protectionist measures for corporate and financial interests. As corporate power extended around the world, the rapid destruction of the environment and resources accelerated, and Western powers ‘outsourced’ the environmental devastation our consumer societies ‘require’ to the so-called Third World. We consume, and they suffer; a marriage of inconvenience that we call “civilization.” Corporations and our state keep the rest of the world in a state of poverty and repression, eternally attempting to block the inevitable global revolution to create a human society that acts… humanely. We were busy buying things. Couldn’t be bothered.

Now what our societies have done to the people on whose land we now live, or everyone else in the world, is being done internally, to us. Everything is up for sale! Corporations make record profits, hoard billions and trillions in cash reserves, NOT being invested, but likely waiting until your standard of living is significantly reduced so that your labour and resources are cheaper, and thus, ultimately more profitable. This is called ‘austerity’ and ‘structural reform,’ political euphemisms for impoverishment and exploitation.

Corporations, banks and states have in recent years caused a massive global food crisis, driving food costs to record highs almost every subsequent year from 2007 onward. With billions of people in the world living on less than $2 per day, the majority of humanity spends most of their income on food. Price increases in food, caused primarily by financial speculation (big players include Goldman Sachs, Morgan Stanley, and Barclays), push tens of millions more people into poverty and hunger. Roughly one billion – 1/7th of the world’s population – live in slums. And they are growing rapidly. Massive urban slums were developed out of the imperialism Western states and corporations imposed upon the rest of the world, pushing people off the land and into the cities, whether induced by poverty or coerced by bombs and guns. All billed to the imperial Western state sponsors of terrorism. We supported (and support) ruthless and tiny elites in the countries we dominate[d] around the world, and now we are just beginning to realize the ruthless and tiny elite which rules over our own domestic lives. Their social function is that of a parasite: to suck the life blood out of all global society.

Food price increases have helped spur a massive global land grab, with Western (as well as Gulf and Asian powers) grabbing vast tracts of land – and water – around the world, for pennies on the dollar. This grab is most extensive in Africa, where in the past several years, mostly Western investors have grabbed land which amounts to an area roughly the size of Western Europe. The land not only contains extensive resource wealth, most importantly water (the Nile is up for sale!), but it is home to hundreds of millions of people, and globally, there are 2.5 billion poor people engaged in small-scale farming. This is primarily done through communal land ownership, something which Western society – with its ‘divine right’ of private property – does not understand. Thus, in international, state, and corporate law – which we designed – we deem communally owned and used land to be legally owned by the state. Our ‘investors’ – banks, hedge funds, pension funds, corporations and states – strike deals with corrupt states across the world to give us 40-100 year contracts for vast tracts of land, paying little or sometimes no rent. Then the “empty land” – as we call it – is cleared (of it’s “emptiness”, no doubt), evicting peoples who have been there for generations and beyond, who depend upon the land and the food it produces for their very lives. These people are being driven to cities, and ultimately, slums.

This is what we call “productive” use of land. So naturally, we then destroy it, eviscerate its environment, poison and pollute, extract, exploit, plunder and profit. Or we simply hold onto the land, not using it at all, just waiting until it goes up in profit. Even major American universities like Harvard are getting involved in the massive land grabs across Africa and elsewhere. This is the largest land grab in history since the late 19th century ‘Scramble for Africa’ where Europeans colonized almost the entire continent. When we do use the land for ‘productive use’, we say it will “help the climate” and “reduce hunger.” How? Because we will produce food and biofuels. And in doing so, we will use massive amounts of chemicals, pesticides, genetically modified organisms, deforestation, biodiversity destruction, highly mechanized and heavy fuel-use farming techniques. The food we produce – which is not much, we have more interest in things like biofuels, lumber, minerals, oil, cash-crops, etc. – is then exported to our countries, and away from the poor ones where hunger and poverty are so prevalent. They lose their land, gain more poverty, with the added bonus of extensive food insecurity, hunger, starvation, slum growth, increased mortality rates, disease, and violence. Poverty is violence.

This is how Western states, banks, corporations and international organizations address the issue of “hunger”: by creating more of it. And in a deeply disturbing irony, we call this moving towards “sustainability.” Little did we know that power interests have a different definition of “sustainability” than most people: they simply combined the words sustained and profitability, and called it “sustainability.” And coincidentally, that word already has a meaning to most people, so we simply misinterpreted the meaning. But there are people who take that concept seriously, those who experience the major costs of an unsustainable society.

We are witnessing a massive global resistance to these processes, largely driven by indigenous peoples – in Africa, Latin America, Asia, and now in North America. In Canada, the ‘Idle No More‘ movement began with four indigenous women in Saskatchewan deciding to meet up and discuss their concerns about Steven Harper’s “budget bill,” which, among other things, had reduced the amount of Canada’s protected rivers, lakes, and streams from roughly 2.5 million (as of Dec. 4, 2012) to somewhere around 62 (as of Dec. 5, 2012). Now a large, expanding, and increasingly international social movement led by indigenous peoples is taking place. Less than two months ago, it began with four women having a discussion.

Canada’s Indigenous peoples are showing Canadians – and others around the world – how to stand up against power. And they’ve had practice. For over 500 years, our societies have been oppressing and often eradicating indigenous populations at ‘home’ and abroad. Indigenous peoples, like other oppressed peoples, are at the front lines of the most oppressive nature of our society: they experience and have experienced exploitation, environmental devastation, domination and decimation. With the world’s Indigenous peoples speaking – not only in Canada, but across Latin America, Africa, and elsewhere – it is time that we in the West begin to listen. It is always important to listen to those who are most oppressed; the histories of our ‘victims’ are rarely written or known, at least not to us. Victims remember. And it matters that we begin to listen.

How can we expect to change – or know what and how to change – our societies if we do not listen and learn from those who have experienced the worst of our society? Indigenous people are now giving us a lesson in democratic struggle. If we continue on our current path, Indigenous communities will be completely wiped out; the powers that rule our society will have completed a 500-year genocide.

So we have to ask ourselves the question: should we now listen to, learn from, and join with these people in common struggle for justice and the idea of a humane society, or… are we still too busy buying things?

Perhaps it is time we all should be ‘Idle No More’.

The above was a short summary of roughly three separate chapters currently being researched and written as part of The People’s Book Project. To help the Project continue, please consider spreading the word, sharing articles, or donating.

The Great Corporate Colony: Welcome to Canada Inc., A Subsidiary of the American Empire & Co.

The Great Corporate Colony: Welcome to Canada Inc., A Subsidiary of the American Empire & Co.

By: Andrew Gavin Marshall

Canada's Foreign Minister John Baird (left), Prime Minister Stephen Harper (centre), and Chinese Premier Web Jiabo (right). Photo from the Globe and Mail.

Canada’s Foreign Minister John Baird (left), Prime Minister Stephen Harper (centre), and Chinese Premier Wen Jiabao (right). Photo from the Globe and Mail.

 

The following is a sample from the first volume of The People’s Book Project, a crowd-funded initiative to produce a series of books studying the ideas, institutions, and individuals of power and resistance. Please consider donating to help the Project come to fruition.

As one of the most resource-rich countries on earth, and the largest single trading partner with the United States, Canada is strategically positioned to influence the changing nature of global power structures. Do we support – and siphon our resources for the benefit of – the American Empire, co-operating in the wholesale plundering of the world, the oppression and impoverishment of peoples, destruction of global ecology, all for the benefit of an increasingly small class of global corporations and banks… Or, do we become independent and free? Canada’s Prime Minister Stephen Harper once said, “You won’t recognize Canada when I get through with it.” With multiple “free trade” agreements under way, expanded corporate rights, expropriation of vast amounts of natural resources, Canada is becoming one of the world’s foremost corporate colonies, unrecognizable from what Canadians once imagined our nation to be.

The Plundering Potential of Resource Wealth

Canada is the second largest country by landmass in the world, after Russia, and with roughly 10% of the population of the United States, it is also one of the most resource rich countries on the entire planet. Looking at a list of the ten most resource-rich nations on earth (determined not by the multitude, but rather the ‘market value’ of the resources they contain) is rather revealing. At number ten, and in descending order is: Venezuela, Iraq, Australia, Brazil, China, Iran, Canada, Saudi Arabia, the United States, and Russia. Canada has one of the largest oil reserves in the world after Saudi Arabia and Iran (though these are largely located in the difficult-to-extract Alberta tar sands), as well as having some of the largest mineral resource deposits in the world, with the second-largest proven reserves of uranium and the third largest amount of timber.[1] According to Statistics Canada, the nation’s natural wealth tripled in value between 1990 and 2009, then valued at $3 trillion, largely due to the increased price of oil.[2]

In June of 2012, the United Nations released a major report in which it established a new index to account for and define ‘wealth’ beyond mere reports of GDP. Termed the “Inclusive Wealth Index” (IWI), it determines national wealth based upon three types of assets: “manufactured” (machinery, buildings, infrastructure, etc.), “human capital” (the population’s education and skills), and “natural capital” (land, forests, fossil fuels, minerals, etc.). The study, Inclusive Wealth Report 2012, analyzed 20 different countries, and was intended to take into account depleting resources and sustainability for future generations when determining a nation’s real wealth. While GDP growth has taken place in China, the U.S., South Africa and Brazil, these nations have significantly reduced their natural capital. Between 1990 and 2008, the “natural capital” of the United States declined by 20%, 17% for China, 25% for Brazil, and 33% for South Africa. In fact, 19 out of the 20 countries studied showed a decline in natural capital, offset only by an increase in human capital (education and skills).[3]

Human capital is based upon the average years of schooling, wages that the country’s workers can demand, and how many years they are expected to work before they retire or die. With this measurement, human capital amounts to the largest percentage of a nation’s wealth (except for Nigeria, Russia, and Saudi Arabia), accounting for 88% of Britain’s wealth and 75% of America’s.[4] Canada is of course included among the 19 countries with rapidly declining natural capital.

Canada’s Minister of Natural Resources Joe Oliver spoke to a gathering of Canaccord Genuity Corporation (a financial services conglomerate) in Toronto in September of 2012, where he explained that Canada’s “tremendous natural wealth” included “huge capacities and reserves of energy, including the third-largest proven oil reserves in the world,” as well as “tremendous hydroelectric capacity, massive tracts of forests and an abundance of minerals and metals.” He added, however: “it’s not enough to have the resources… You have to do something with them.” Oliver listed some of the many resources which Canada has and produces in abundance: oil, natural gas, hydroelectricity, uranium (second largest producer in the world), more than 200 mines turning out more than 60 minerals, “including more potash than anyone else,” as well as aluminum, cobalt, diamonds, nickel, platinum group metals, titanium concentrate, tungsten, chromite, the second-largest exporter of primary forest products, and is the “biggest exporter of wood pulp, newsprint and softwood lumber.” The resource sector, explained Oliver, “is the cornerstone of our economy, our long-term prosperity and our quality of life.”[5]

Oliver explained that the energy, forestry, metals and minerals industries accounted for roughly 15% of Canada’s nominal GDP, the “direct contribution” to the Canadian economy, while the indirect GDP (taking into account “goods and services purchased from other sectors – construction, machinery and equipment, business and professional services”) takes the number up to roughly 20%. The key areas and industries are oil in Alberta, forestry in British Columbia, potash and uranium in Saskatchewan, mining in Ontario and hydro-power in Quebec. Oliver told the assembled crowd in the heart of Toronto’s finance industry that there was “about $650 billion invested in over 600 major resource projects currently underway in Canada or planned in the next 10 years.” He added: “Countries in the Asia-Pacific region are especially hungry for the energy and minerals and metals and forest products they need to fuel their growth and build a better quality of life for their citizens.” There were, he acknowledged, still inherent problems with the global economy which could effect this outlook, but suggested that what the Canadian government can – “and is doing – is establish a competitive business climate so the private sector can capitalize on our enormous potential.” In other words, the Canadian government will establish a highly protective and subsidized market for multinational corporations to more effectively plunder the natural resources.[6] All for altruistic intentions, of course!

Canada’s highly influential big business dominated think tanks have not been far behind in promoting resource plundering by multinational corporations. The Conference Board of Canada published a report in June of 2012 arguing that “Canada’s trade strengths are concentrated in industries that extract natural resources and process raw materials,” including agricultural and food products, minerals and metals, forest products, and electricity exports. In the report, Adding Value to Trade: Moving Beyond Being Hewers of Wood, Michael Burt wrote: “These industries rely heavily on natural resource wealth such as land, water, forests, and mineral products. The abundance of these resources gives Canada a robust comparative advantage in the industries that extract and process them.” Thus, it would be desirable to promote the “development and use of our natural resources, and industries that support the primary sector are competitive with world standards.”[7] The board of directors of the Conference Board of Canada includes executives and/or board members of the Business Development Bank of Canada, EPCOR Utilities, CGI Group, GE Canada, Canada Post Corporation, TransAlta Corporation, ICICI Bank Canada, Cisco Systems Canada, Desjardins Group, IBM Canada, Shell Canada, Xerox Canada, SaskTel, SaskPower, and John Manley, the President and CEO of the Canadian Council of Chief Executives (CCCE), the main business interest group in Canada, made up of the top 150 corporate CEOs in the country.

In October of 2012, the Canadian International Council (CIC) – the Canadian counterpart to the Council on Foreign Relations in the U.S. – published a report entitled, Becoming a Resource Superpower, in which the author, Madelaine Drohan (the Canada correspondent for The Economist) argued that, “without strong leadership and collaboration we risk losing an opportunity to become a real resource superpower.” A series of recommendations were laid out, including the possibility of establishing a sovereign wealth fund (SWF) to pool and invest money made from resources, encouraging the provincial and federal governments in Canada to “stop treating” revenue from resources “as income to be spent and start treating them as capital to be saved or invested.” In other words, the money made from resources should not go back to benefit Canadians, but rather be used to exclusively benefit the investor class.[8]

Other recommendations focused on expanding the relationship between government, business, and academia (as if we don’t have enough of this already): “To do this, federal and provincial governments must concentrate their funding for research and development on collaborative projects between groups of companies and academic institutions.” Another recommendation focused on expanding “trade” networks and energy customers, specifically in the Asia-Pacific, noting: “Canada should focus on negotiations involving the largest possible number of countries, such as the Trans-Pacific Partnership, and look beyond China so we do not repeat the error of putting all our eggs in one basket.” The report then recommended the government to establish highly protectionist trade agreements for corporations, writing: “Government can help companies plug into global value chains by removing impediments and securing the right trade and investment deals.” By definition, that is the opposite of “free trade,” which is why it is important that we call it “free trade,” when in actuality, it is highly protectionist, involving state intervention designed to undermine the ‘market’ and give corporations a subsidized advantage, thus, undermining competition. The last major recommendation was for federal, provincial, and territorial governments to “collaborate on a national blueprint for resource development that identifies the gaps to be filled – including in infrastructure, environmental protection, trade diversification, education, immigration, technology, and supporting sectors – and sets out how to address them, with achievable goals and deadlines.” In other words, massive state-capitalist planning and plundering is required.[9]

The board of directors of the Canadian International Council (CIC) includes the president and CEO of the Canadian Chamber of Commerce, Chair of the Atlantic Council of Canada, Raymond Chrétien (nephew of former Prime Minister Jean Chrétien), while the chief sponsors of the CIC include: Bennett Jones, Power Corporation of Canada (owned by the Desmarais family, Canada’s Rockefellers), the Royal Bank of Canada, AGF, Barrick Gold, BMO Financial Group, Sun Life Financial, Scotiabank, and TD Bank. So naturally, it has everyone’s interests at heart, and by ‘everyone’, I mean, everyone that matters to the investor class (i.e., the investor class).

So, as Canada increases production of oil from Alberta’s tar sands, the government is seeking to expand the major pipelines to the coast in the hopes of acquiring China as a major trading partner, instead of just the United States.[10] Canada sits atop “unknown quantities” of natural gas reserves, what The Economist calls an “unconventional bonanza,” adding: “Just as the 20th century was the age of oil, the 21st could prove to be the century of gas.”[11] However, in August of 2012, Canadian Prime Minister Stephen Harper declared that Canada’s future economic hopes depend upon the natural resources of the Arctic, which has been the focus of a new global grab for resources since the Arctic ice has begun to break up more rapidly. On a visit to the region, Harper stated, “Obviously, there is a tremendous economic opportunity here. The fact that we are attracting investment not just domestically, but from around the globe speaks very highly to the future.” As revealed by documents released to the press, in late 2011, the Mining Association of Canada was lobbying the Environment Minister Peter Kent “to change regulations and allow non-metal mines, such as diamonds, oilsands and coal, to discharge potentially polluted water under federal guidelines.”[12]

In other words, now that the ice is breaking and resources are being readied for plunder, the major mining conglomerates want the government’s permission to treat the Canadian environment the way they treat the environment in the rest of the world, notably, in poor, conflict-ridden countries like Colombia and the Democratic Republic of Congo. After all, what is plundering without the added bonus of environmental devastation? It’s not just a matter of extracting and exploiting all available resources, from which to gain massive profits, but it’s also important for corporations to destroy the surrounding environment so that little, if anything, can flourish and replenish. That is plundering at its most profitable. In October of 2012, it was reported that Canada was going to claim ownership of a massive size of undersea territory in the Arctic, larger than the size of the province of Québec, and roughly equal to 20% of the country’s surface area.[13]

In 2013, Canada will begin chairing a two-year term of the Arctic Council, a grouping of eight nations working together to manage the development of the Arctic as an economically and strategically important global region.[14] With the opening of new and large opportunities for economic exploitation and resource plundering, the states with territory in the Arctic have become increasingly aggressive in their military posturing in the region, “increasingly designed for combat rather than policing,” according to a study by the Centre for Climate and Energy Solutions. The report noted: “Although the pursuit of co-operation is the stated priority, most of the Arctic states have begun to rebuild and modernize their military capabilities in the region.”[15]

Canadian Prime Minister Stephen Harper had been publicly making aggressive statements about competition in the Arctic, particularly in relation to Russia. In private, however, Harper had been making different claims. As revealed by Wikileaks, Harper expressed the message to the Secretary-General of NATO that there was no real military threat in the Arctic, instead expressing the perspective that, “Canada has a good working relationship with Russia with respect to the Arctic, and a NATO presence could backfire by exacerbating tensions.” Harper added, according to the released cables, “that there is no likelihood of Arctic states going to war, but that some non-Arctic members favoured a NATO role in the Arctic because it would afford them influence in an area where ‘they don’t belong’.” All the public statements and aggressive military stances in the region have, however, helped to sway public opinion into believing that there is a “security or sovereignty threat to the northern border,” and thus justify increased expansion into the region for exploitation. The issue is not one of security, but of securing resources (for corporations, no doubt). One released cable from 2009 relayed this point accurately, noting that Canada’s defense plan to build six Arctic Patrol ships for the navy was “an example of a requirement driven by political rather than military imperatives, since the navy did not request these patrol ships. The Conservatives have nonetheless long found domestic political capital in asserting Canada’s ‘Arctic Sovereignty’.”[16] By the summer of 2012, the aggressive rhetoric had essentially vanished, and Harper’s missions to the Arctic were entirely diplomatic and aimed at exploiting the region’s vast natural resources.[17] The Obama administration has also identified the Arctic as “an area of key strategic interest.”[18]

Canada For Sale: “Free Trade” Fanaticism

Canada has been pursuing a vast array of so-called “free trade” agreements with specific countries around the world, as part of the overall program of plundering resources and giving multinational corporations unprecedented control over society. Since the 1988 Canada-U.S. Free Trade Agreement and the 1994 North American Free Trade Agreement (NAFTA), Canada has pursued agreements with several countries, including Israel, Jordan, Chile, Costa Rica, Colombia, Honduras, Panama, Peru and is in talks with the European Union and Japan, as well as China and India.[19]

On August 15, 2011, the Canada-Colombia Free Trade Agreement – a highly protectionist corporate-driven agreement (like all “free trade” agreements) – came into effect. The agreement was reached in 2008, receiving “royal assent” in 2010, and is sure to benefit major corporations and help finance a state which is responsible for the greatest human rights violations in the Western Hemisphere. Canada’s top five exports to Colombia include wheat, newsprint and paper, machinery and equipment, dump trucks as well as beans, peas, and lentils. Colombia’s top five exports to Canada include coal, coffee, bananas, fuel oil and cut flowers (note: this list excludes illicit trade products like cocaine, of which Colombia is a major global exporter).[20]

As critics of the deal pointed to Colombia’s record on human rights abuses, Stephen Harper commented, “No good purpose is served in this country or in the United States by anybody who is standing in the way of the development of the prosperity of Colombia,” by which he means to say that human rights are irrelevant so long as multinational corporations are making large profits. And indeed, policies fit that paradigm very well. Harper added: “Colombia is a wonderful country with great possibility and great ambition. And we need to be encouraging that every step of the way. That’s why we have made this a priority to get this deal done. We can’t block the progress of a country like this for protectionist reasons.”[21] In this sense, the word “protectionist” refers to any impediments, regulations, or barriers to the unhindered exploitation and plundering of a country by multinational corporations. When agreements are protectionist in favour of corporations, securing and enforcing their unhindered monopolization of markets and exploitation of resources, this is called “free trade.”

With more than 70 Canadian corporations in Colombia, from oil and mining to finance, the agreement will open up more access for major companies. For those who mention human rights abuses, Harper had this to say: “I think there are protectionist forces in our country and in the United States that don’t care about development and prosperity in this part of the world. And that’s unfortunate.” Chris Spaulding of Talisman Energy, a Canadian corporation doing business in Colombia, commented that, “It’s very business friendly. They want foreign investment. The labor force is very good. The resources are there.”[22]

According to the Globe and Mail, Colombia has “near bullet-proof potential for rapid growth,” due to low wages, abundant resources, and with the return of “order” (a euphemism for state oppression and control), though the country still has a high murder rate, five times the rate of the United States. Colombia not only signed a free trade agreement with Canada, but also with the U.S., and has received top rates from the World Bank for fostering a good “business climate.”[23] Scotiabank, one of Canada’s big five banks, made a $1 billion purchase of a 51% stake in Colombia’s fifth largest bank, Banco Colpatria.[24] Rick Waugh, the CEO of Scotiabank, declared that, “Colombia is very important to us.”[25]

Toronto-based mining company Gran Colombia Gold Corp has been seeking to remove an entire town, a 500-year old community, to make way for an open-pit mine. When the Colombian government was preparing to displace the town, villagers in the community formed a committee to defend themselves. One of the organizers, a local priest, Father José Reinel Restrepo, publicly denounced the plan to move the town for the benefit of a foreign corporation, even giving television interviews in which he denounced “Canadian imperialism.” He explained: “If they are going to drive me out of here, I would tell them they would have to expel me by way of bullets or machetes – but they can’t oblige me to leave.” Four days later, Father Restrepo was shot dead while traveling to visit his family.[26]

Colombia has a long history with powerful business interests allying themselves with paramilitary outfits to “silence opponents and displace rural populations living atop natural resources.” Under the guise of the “war on drugs,” Colombia’s military, with billions in “aid” from the United States, has co-operated with big business interests and criminal paramilitary groups, purportedly to fight rebel groups (notably FARC), but mostly to clear rural communities to allow for corporate plundering of the resources upon which they sit. In recent decades, some four million people have been displaced by such actions, leaving the country with Latin America’s “most inequitable distribution of wealth.” On top of that, Colombia is a major narco-state, with state, paramilitary and rebel groups all participating in the massive cocaine trade. Many historians have described Colombia as “the world’s most enduringly violent country,” with over five decades of constant internal warfare. With over 20 major Canadian companies holding major investments in Colombia, it’s no wonder that the World Bank rated the country as the best investment climate in Latin America.[27]

The brand of “order” that the government of Colombia has enforced in recent years represents a continuation of the policies of several administrations before it. The human rights and humanitarian crisis in Colombia is “staggering in scale,” with millions displaced, killed, tortured, raped, kidnapped or “disappeared,” more than 280,000 people had to flee their homes in 2010 alone. State, paramilitary and rebel groups have all routinely been accused of vast human rights abuses and war crimes. While the new government of President Santos promised to prioritize human rights when he came to power in 2010, the reality, according to Amnesty International, was that “threats against and killings of leaders of displaced communities and of those seeking the return of lands misappropriated during the conflict, mainly by paramilitary groups, have increased during the Santos government.” In criminal investigations of human rights abuses, witnesses, victims, lawyers, and judges have continuously been threatened or even killed. Threats and murders have also increased for human rights activists, trade unionists, and community leaders.[28]

Canadian law demands that the government table a human rights report for Parliament on the impact of the Canada-Colombia Free Trade Agreement. Instead of submitting the report, the Canadian government decided, in May of 2012, that it would not even adhere to Canadian law, and refused to submit any such report, instead stating that it would produce a report for May of 2013. With more than 259,000 people displaced from their homes in Colombia in 2011 (on top of the 280,000 displaced in 2010), human rights abuses and war crimes will continue, with the tacit (and perhaps active) cooperation of Canadian corporations, notably mining companies. The Canadian government has effectively given the green light for such abuses to continue. While Colombia’s Constitutional Court identified 34 Indigenous nations in the country that were in “grave danger of extinction,” Canadian indifference continued. Alex Neve, the Secretary General of Amnesty International Canada declared that, “Canada must not turn its back on the human rights crisis in Colombia for yet another year… The crucial question that should not be postponed is what role is Canadian investment playing with regard to this emergency?” Neve added: “Failure to carry out a full impact assessment violates Canada’s responsibility of due diligence under international law and denies Canadian corporations working in Colombia the information they need to avoid implicating themselves in grave human rights violations.”[29]

The website for the Canadian ministry for Foreign Affairs and International Trade declared that the Canada-Colombia FTA provided “a key boost for Canadian companies in five important sectors: agriculture, information and communication technologies, mining, oil and gas, and services.” Noting that Canada’s interest in the narco-state was “growing strongly,” the ministry website added that Colombia had “undergone important economic and legal reforms, spurring democracy and global direct investment.” The business climate, it declared, was “now stable and predictable, making Colombia a secure business partner and a solid investment destination.”[30] With that in mind, Canada’s Defence Minister Peter MacKay signed an agreement with the Colombian military in November of 2012 to strengthen its “military relationship with Colombia,” which MacKay stated, “represents a natural evolution in our relationship… And we look forward to continuing to build our ties with the Colombian Armed Forces.” No doubt, as they continue to displace hundreds of thousands of innocent people in order to clear the land for foreign corporations, and of course, to help advance the profits of the international illicit drug trade.[31]

Scotiabank decided to expand its operations further in Colombia, with the purchase of a majority stake in one of Colombia’s largest pension fund companies. Scotiabank has taken on a major role in “financing Colombia’s energy and mining sectors,” with the bank’s head of global wealth management stating, “We look to continue the growth and expansion of this business.” Another executive at Scotiabank stated, “We continue to invest in Colombia because we see this as a market with great potential for growth.”[32] Interestingly, the Canadian Embassy in Colombia is located in the new Scotiabank Tower in Bogota.[33]

Canada continues to pursue further “free trade agreements” with other countries as well, notably, Japan and China. In March of 2012, Canada and Japan agreed to begin free trade talks, already steadfast trading partners. On top of “free trade,” the Japanese Prime Minister Yoshihiko Noda announced that Canada and Japan would also be advancing defence and security “co-operation.”[34] At the announcement, Harper declared that, “This is a truly historic step that will help create jobs and growth for both countries.” Jayson Myers, the president of the Canadian Manufacturers & Exporters association stated, “Japan is a strategic commercial partner… However, it is also a country with whom we’ve had a persistent trade deficit when it comes to manufacturing. These negotiations provide the appropriate forum to resolve ongoing concerns.”[35]

As revealed by secret documents obtained by the media, the Canadian government had been lobbying the United States to join the Trans-Pacific Partnership agreement for the main reason of gaining more access to Japan, with one document noting that the TPP without Japan “does not excite us.”[36] In November of 2012, it was reported that Japan was likely to follow Canada’s entrance into the TPP, the largest and most secretive trade agreement in history, involving 11 Pacific rim countries, and negotiated in cooperation with over 600 corporations. The TPP is highly controversial within Japan, since it could potentially – and likely would – lead to reduced protections and subsidies for the Japanese agriculture sector, an area long considered untouchable. A spokesperson for the Canadian department of Foreign Affairs and International Trade stated, “We welcome Japan’s interest in joining the TPP. Japan’s participation in the TPP would further strengthen Canada and Japan’s strong trade and investment relationship. We are already working closely with Japan towards a bilateral free trade agreement that will bring new jobs and increased prosperity to Canadians and we would welcome the opportunity to also work together in the TPP.”[37]

(For more information on the TPP, please see my three-part series here: The Trans-Pacific Partnership)

Canada has also begun talks with India and hoped to sign a free trade deal with the country by the end of 2013, with Stephen Harper stating, upon a visit to India, “I think I am very clear that we need to go farther and faster.” Stephen Harper lamented against the fact that India has democratic institutions, and thus, undemocratic policies are harder to implement. He stated: “What we do have to realize when we deal with India, as opposed to some other countries that we’re dealing with in the developing world – this country is a democracy… And that means that governments cannot simply dictate a whole set of policy changes to happen the next day. That means governments must develop consensus behind policy changes. And that, in this country is not easy. We understand that.”[38] Luckily for Harper, he doesn’t have to face any such problems at home, with a majority government, tearing the country to pieces day-by-day. Stephen Harper once boasted many years ago, that if he was given the chance to become Prime Minister, “You won’t recognize Canada when I get through with it.”[39] Indeed, that turns out to be quite true. Indeed, back in 1997, Harper wrote an article in which he referred to Canada as “a benign dictatorship,” though there seems to be little ‘benign’ about his majority-government rule.[40]

In September of 2012, Stephen Harper signed an investment treaty with China (as a precursor to a potential free trade agreement), called the Foreign Investment Promotion and Protection Agreement (FIPA). The details of the agreement were kept secret until the deal was tabled in the Canadian Parliament in late September, but the agreement is not to be debated in Parliament because treaty making “is a royal prerogative,” and can thus become law through the initiative of the Prime Minister’s cabinet alone, so long as the treaty is ‘tabled’ in Parliament. Canada already had roughly 24 FIPAs in operation, with roughly a dozen more in the works. FIPAs are not “free trade agreements,” but are designed to simply “protect and promote” foreign investment in legally-binding agreements.[41] In essence, they are quicker and smaller versions of “free trade” agreements, and designed with a similar purpose: to advance corporate rights and the expense of democratic rights.

China’s ambassador to Canada stated that the two countries should move quickly toward a free-trade agreement within a decade, adding, “It’s time to open each other’s markets.” The comments came as a major Chinese state-owned corporation was seeking to take over a Canadian energy company, which would be the first direct foreign takeover of a major actor in Canada’s energy sector, a major concern for Canadians who fear Canada’s resource wealth will not benefit Canadians. On this issue, the Chinese ambassador noted, “Business is business. It should not be politicized… If we politicize all this, then we can’t do business.” The ambassador told a Canadian journalist, “We are not coming to control your resources.”[42] No, of course not, they’re just coming to take the resources. Within a couple months, Prime Minister Harper approved of the Chinese takeover of the Canadian energy company Nexen, as well as another takeover by a Malaysian company in the Canadian energy sector. However, Harper then stated that there would be restrictions on foreign governments buying some of Canada’s largest energy conglomerates (just not these ones in particular). At a press conference, Harper stated, “When we say that Canada is open for business, we do not mean that Canada is for sale to foreign governments.” Except, of course, for all the exceptions to that rule.[43]

Critics of the Canada-China FIPA warned that it would reduce Canada to little more than a “resource colony,” which would bind Canada to new investment rights with China for 30 years.[44] Not only does it allow China to gain an increased foothold in Canada’s economy, and specifically, in purchasing Canadian resources, but it also acts “to protect Canadian capitalists when they go into China.”[45] What more could someone ask for? The Council of Canadians, a public interest organization, referred to the Canada-China FIPA as a “corporate rights pact” that would have serious repercussions on Canadian environmental, energy, and financial policies. This is because the deal would allow for lawsuits against the Canadian federal and provincial governments for having “barriers” to investments, which could then be overturned.[46]

Canada is also in the final stages of negotiating a trade agreement with the European Union, called the Comprehensive Economic Trade Agreement (CETA), designed to reduce tariffs and open up “new markets,” having major impacts upon agriculture, intellectual property rights (copyright and patent laws), with drug prices likely to increase “significantly,” as well as allowing for more “labour mobility,” a euphemism for increased labour exploitation.[47] The agreement, which has been in negotiations for years, would “deal another blow to Canada’s already battered manufacturing sector,” with roughly 28,000 jobs under threat, deemed to be the “best-case scenario” by the Canadian Centre for Policy Alternatives. The “worst-case” scenario could see up to 152,000 jobs being “vaporized.”[48]

As is typical, the negotiations are “behind closed doors” and barely deal with actual “trade.” CETA is, much like the TPP, termed a “next generation” free trade agreement, negotiated since May of 2009, and would further deregulate and privatize the Canadian economy, and of course, therefore, increase corporate power, and thus at the expense of democratic accountability. The agreement could restrict how local and provincial governments could spend money, even banning “buy local” policies, increase the cost of drugs by $3 billion, increase Canada’s trade deficit with the EU, allow for European corporations to attack environmental and health protections within Canada as “barriers to investment,” potentially even apply pressure to privatize water, transit, and energy, and even prevent farmers from saving their seeds, as a major gift to GMO manufacturers.[49] Where corporate rights are advanced, democratic rights are dismantled.

A leaked document from the European Commission dated November 6, 2012, revealed that the practice of Canadian municipalities “buying locally” would disappear with the Canada-EU CETA, and that “provincial development programs could go with them.” Canadian municipalities were offering better terms for European access to municipal contracts that those which Canadian provinces give each other. The document, prepared for the European Commission’s Trade Policy Committee noted that the agreement is “the most ambitious and comprehensive offer Canada and its provinces have made to any partner, including the U.S.” EU negotiations will, however, continue to press for more access to energy sectors. Maude Barlow of the Council of Canadians noted: “The amount of room our provinces, municipalities and local communities have to support local farmers and otherwise create the jobs of tomorrow is threatened again by a Canada-European Union free trade deal that will forever prohibit these kinds of economic strategies.” The province of Ontario could alone lose between 13,000 and 70,000 jobs as a result of the agreement, according to the Canadian Centre for Policy Alternatives.[50]

Openly acknowledged by European politicians was that Canada would be getting the short end of the stick in the CETA deal, as a Danish member of the European Parliament stated, “At the moment Europe will be able to export more than what Canada will be exporting.” Another European official closely linked to the negotiations stated, “We will gain a bit more.” Canadian Trade Minister Ed Fast said, “[t]he potential benefits to Canadians under a free trade agreement with the European Union are immense,” though he forgot to acknowledge that the ‘Canadians’ he was referring to are largely corporations, and the elite class that owns them. Michael Hart, a trade expert at Carleton University noted, “[t]rade agreements do not create jobs. Never have. Never will. But ministers have never accepted that economic insight.”[51] And understandably so, after all, it’s rather challenging to sell a trade deal to the public if one openly declares it is for the singular purpose of advancing corporate rights, domination, and plundering. So instead, politicians must always mutter the magical word of “jobs,” which in political language, translates accurately into “profits,” as Noam Chomsky has suggested in the past. Thus, when politicians say that trade agreements will “create jobs,” which they never do, what they are actually saying is that such agreements will “create profits,” and exclusively for major multinational corporations, which they always do.

Canada’s trade agenda is of course driven by big business, whose interests will be served by such “free trade” agreements. In regards to CETA, the Canada Europe Roundtable for Business (CERT) was established in 1999 to contribute “recommendations on trade and investment to government officials and hosting thematic, high-level meeting focused on developing strategic relationships between company executives and with government officials,” according to the website for CERT. A declaration of support in 2008 for a Canada-EU trade agreement was signed by over 100 executives in Europe and Canada, urging Canadian and EU leaders to “design a new type of forward-looking, wide-ranging and binding bilateral trade and investment agreement.” Such an agreement, the document stated, “will provide European companies with a gateway into the vast North American free trade area, while increasing Canadian opportunities in the European Common Market,” serving as “a strategic and important step towards the eventual creation of a comprehensive transatlantic trade and investment area.” Among the signatories to the statement were top executives at the following companies: Anglo American plc, AstraZeneca, Barrick Gold Corporation, BASF, Bayer, Bertelsmann, BNP-Paribas, Bombardier, British Airways, Canadian Chamber of Commerce, Canadian Manufacturers & Exporters, CN, Commerzbank, Deutsche Bank, E.ON AG, Gaz de France, GlaxoSmithKline, Lafarge, Manulife Financial, Merck, Monsanto Canada, Munich Re, Pfizer Canada, Power Financial Corporation, Rio Tinto plc, Royal Dutch Shell, Siemens, SNC-Lavalin, Société Générale, SUEZ, Suncor, ThyssenKrupp, TOTAL SA., TSX Group, Ubisoft Entertainment, and Volkswagen, among many others.[52]

In late October 2012, a number of European and Canadian big business lobbying groups, including BusinessEurope, the Canadian Chamber of Commerce, and the Canada Europe Roundtable for Business (CERT), sent a letter to the Canadian and European trade negotiators, Ed Fast and Karel de Gucht, respectively, urging them to push through on the CETA. The signatories called for Canada and the EU to reach “an ambitious and successful conclusion to the Comprehensive Economic and Trade Agreement (CETA) negotiations by the end of 2012.” The letter said it was “imperative” to “maintain a high level of ambition” in key areas which would benefit Canadian and European corporate interests. Among the many areas for which the letter suggested “a high level of ambition” were in recommending the “full and rapid dismantling of tariffs for all industrial goods,” and “[a]ccess to raw materials and energy products,” the removal of barriers and “discriminations” in service sectors, “full access” to the agricultural sector, including “a satisfactory path forward on the bio-tech issues that have caused trade impediments,” by which is meant to advance the interests of GMO manufacturers. Further recommendations included “access to government procurement” which removes all barriers and allows for increased privatization, and of course, “[r]obust protection and enforcement of intellectual property (IP) rights in both markets,” which would include “the targeting, seizing and destroying of counterfeit imports and exports,” so as to undermine competition and protect monopoly and oligopoly corporations. Finally, the letter stated that the Canada-EU agreement “must also ensure improved labour mobility,” which would allow for increased labour exploitation, enhancing competition between the labour forces of Europe and Canada, which always results in lost jobs, lower wages, and reduced protections and benefits.[53] These are, of course, all very good things for multinational corporations. Since they are terrible things for the populations, they have to be coded in political and economic language, so instead of saying, “we want easily exploitable and cheap labour,” they suggest, “improved labour mobility,” which is also at times referred to as “labour flexibility” (i.e., making labour “flexible” to the interests of multinational corporations).

The Great Canadian Corporate Colony

Such letters from corporate leaders are necessary in order to remind political leaders whose interests they are in office to serve. The Canadian government ensured that it would serve big business interests through trade policy by appointing, in May of 2012, a new ‘advisory panel’ which would “help guide Canada’s ambitious, pro-trade plan in large, dynamic and fast-growing priority markets.” Speaking at the Canadian Chamber of Commerce, International Trade Minister Ed Fast stated: “Our government’s top priority is the economy – creating jobs, growth and long-term prosperity for Canadian workers, businesses and families… We understand the importance of trade to our economy… That is why we are deepening Canada’s trading relationships in priority markets around the world.”[54]

Ed Fast announced the formation of the new advisory panel at the Canadian Chamber of Commerce. The members of the panel include: Murad Al-Katib, president and CEO of Alliance Grain Traders Inc.; Paul Reynolds, president and CEO of Canaccord Financial; Kathleen Sullivan, executive director of the Canadian Agri-Food Trade Alliance (CAFTA), representing 80% of Canada’s agri-food sector; Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, former president and CEO of the Canadian Manufacturers & Exporters, former president and CEO of the Canadian Broadcasting Corporations (CBC), and former government minister; John Manley, former Deputy Prime Minister of Canada, former Foreign Affairs and Finance Minister, and currently president and CEO of the Canadian Council of Chief Executives (CCCE), a corporate interest group made up of Canada’s top 150 CEOs; Catherine Swift, president and CEO of the Canadian Federation of Independent Businesses; Jayson Myers, president and CEO of Canadian Manufacturers & Exporters; Brian Ferguson, president and CEO of Cenovus Energy Inc, a major Canadian oil company; Serge Godin, founder and executive chairman of the board of CGI Group Inc, one of the largest information technology businesses in the world; and Indira Samarasekera, president of the University of Alberta. Upon the announcement of this panel, Ed Fast stated: “I look forward to receiving advice from these knowledgeable Canadian leaders.”[55]

So we return to the statement once made by Prime Minister Stephen Harper: “You won’t recognize Canada when I get through with it.” Sadly, this is quite true as Harper Inc. advance Canada to the status of one of the world’s premier corporate colonies, where plundering for profits, environmental degradation, mass privatization, deregulation, and democratic devastation are the rules of the day. A Canada once thought of as democratic, free, and peaceful, is ever-advancing toward a fully privatized outpost of global corporate tyranny: Canada Inc., a subsidiary of the American Empire & Co.

 

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, with a focus on studying the ideas, institutions, and individuals of power and resistance across a wide spectrum of social, political, economic, and historical spheres. He has been published in AlterNet, CounterPunch, Occupy.com, Truth-Out, RoarMag, and a number of other alternative media groups, and regularly does radio, Internet, and television interviews with both alternative and mainstream news outlets. He is Project Manager of The People’s Book Project and has a weekly podcast show with BoilingFrogsPost.

Notes

[1]       “The World’s Most Resource-Rich Countries,” 24/7 Wall St., 18 April 2012:

http://247wallst.com/2012/04/18/the-worlds-most-resource-rich-countries/

[2]       Kim Covert, “Canada’s natural wealth tripled between 1990 and 2009,” Financial Post, 28 June 2011:

http://business.financialpost.com/2011/06/28/canada%E2%80%99s-natural-wealth-tripled-between-1990-and-2009/

[3]       UNEP, “A New Balance Sheet for Nations: Launch of Sustainability Index that Looks Beyond GDP,” UNEP News Centre, 17 June 2012:

http://www.unep.org/newscentre/default.aspx?ArticleID=9174&DocumentID=2688

[4]       Free Exchange, “The real wealth of nations,” The Economist, 30 June 2012:

http://www.economist.com/node/21557732

[5]       Joe Oliver, “Natural Resources: Canada’s Advantage, Canada’s Opportunity,” Natural Resources Canada, 4 September 2012:

http://www.nrcan.gc.ca/media-room/speeches/2012/6475

[6]       Ibid.

[7]       CNW, “Canada’s trade strengths come from natural resources and related industries,” Canada Newswire, 19 June 2012:

http://www.newswire.ca/en/story/995619/canada-s-trade-strengths-come-from-natural-resources-and-related-industries

[8]       Jameson Berkow, “Canada could become a global resource superpower in just nine easy steps,” The Financial Post, 9 October 2012:

http://business.financialpost.com/2012/10/09/canada-could-become-a-global-resource-superpower-in-just-nine-easy-steps/

[9]       Jameson Berkow, “Canada could become a global resource superpower in just nine easy steps,” The Financial Post, 9 October 2012:

http://business.financialpost.com/2012/10/09/canada-could-become-a-global-resource-superpower-in-just-nine-easy-steps/

[10]     Energy in Canada, “The great pipeline battle,” The Economist, 26 May 2012:

http://www.economist.com/node/21555928

[11]     “An unconventional bonanza,” The Economist, 14 July 2012:

http://www.economist.com/node/21558432

[12]     Jordan Press, “Future lies in Arctic resource development, Harper says,” Postmedia News, 21 August 2012:

http://www.canada.com/business/Future+lies+Arctic+resource+development+Harper+says/7122937/story.html

[13]     Randy Boswell, “Canada poised for massive undersea land grab off Arctic, Atlantic coasts,” The Ottawa Citizen, 4 October 2012:

http://www.canada.com/Canada+poised+massive+undersea+land+grab+Arctic+Atlantic+coasts/7345687/story.html#ixzz2BZr0yMiK

[14]     Randy Boswell, “Canada to take helm of Arctic Council as region heats up,” Postmedia News, 25 September 2012:

http://www.canada.com/Canada+take+helm+Arctic+Council+region+heats/7298225/story.html

[15]     Terry Macalister, “Arctic military rivalry could herald a 21st-century cold war,” The Guardian, 5 June 2012:

http://www.guardian.co.uk/world/2012/jun/05/arctic-military-rivalry-cold-war

[16]     Campbell Clark, “Harper’s tough talk on the Arctic less stern in private,” The Globe and Mail, 12 May 2011:

http://www.theglobeandmail.com/news/politics/harpers-tough-talk-on-the-arctic-less-stern-in-private/article579749/

[17]     Campbell Clark, “Harper’s Arctic trips are now diplomatic ventures,” The Globe and Mail, 22 August 2012:

http://www.theglobeandmail.com/news/world/harpers-arctic-trips-are-now-diplomatic-ventures/article4494231/

[18]     Jacquelyn Ryan, “As Arctic melts, U.S. ill-positioned to tap resources,” The Washington Post, 9 January 2011:

http://www.washingtonpost.com/wp-dyn/content/article/2011/01/09/AR2011010903400.html

[19]     “Free trade with Canada has become a global aspiration,” The Vancouver Sun, 2 November 2012: http://www.vancouversun.com/business/Free+trade+with+Canada+become+global+aspiration/7488138/story.html#ixzz2BfUjOQxc

[20]     “Canada-Colombia trade deal takes effect,” CBC, 15 August 2011:

http://www.cbc.ca/news/business/story/2011/08/15/f-colombia-canada-trade.html

[21]     Mark Kennedy, “Harper defends trade agreement with Colombia,” 10 August 2011:

http://news.nationalpost.com/2011/08/10/harper-in-colombia-to-mark-launch-of-free-trade-agreement/

[22]     Ibid.

[23]     Martin Hutchinson, “Colombia’s turnaround: from bullets into drill bits,” The Globe and Mail, 19 January 2012:

http://www.theglobeandmail.com/report-on-business/rob-commentary/rob-insight/colombias-turnaround-from-bullets-into-drill-bits/article1359576/

[24]     Caroline Van Hasselt and Dan Molinski, “Scotiabank Buys Stake in Colombian Bank,” The Wall Street Journal, 21 October 2011:

http://online.wsj.com/article/SB10001424052970204485304576643353880991840.html

[25]     Paul Christopher Webster, “Colombia is Canada’s new best friend,” The Globe and Mail, 26 April 2012:

http://www.theglobeandmail.com/report-on-business/rob-magazine/colombia-is-canadas-new-best-friend/article4102946/?page=all

[26]     Ibid.

[27]     Ibid.

[28]     Alex Neve, “Canada’s tainted trade partner,” The Toronto Star, 21 September 2011:

http://www.thestar.com/opinion/editorialopinion/article/1057525–canada-s-tainted-trade-partner

[29]     News Release, “Canada-Colombia trade deal: Empty human rights impact report yet another failure by government,” Amnesty International, 16 May 2012:

http://www.amnesty.ca/news/news-item/canada-colombia-trade-deal-empty-human-rights-impact-report-yet-another-failure-by-go

[30]     FAITC, “Colombia FTA gives Canadian firms a big boost,” Foreign Affairs and International Trade Canada, 7 December 2012:

http://www.international.gc.ca/canadexport/articles/111012b.aspx?view=d

[31]     Jessica Hume, “Canada, Colombia strengthen defence relationship,” The Toronto Sun, 17 November 2012:

http://www.torontosun.com/2012/11/17/canada-colombia-strengthen-defence-relationship

[32]     Grant Robertson, “Scotiabank bulks up in Colombia,” The Globe and Mail, 14 August 2012:

http://www.theglobeandmail.com/report-on-business/international-business/latin-american-business/scotiabank-bulks-up-in-colombia/article4479935/

[33]     Paul Christopher Webster, “Colombia is Canada’s new best friend,” The Globe and Mail, 26 April 2012:

http://www.theglobeandmail.com/report-on-business/rob-magazine/colombia-is-canadas-new-best-friend/article4102946/?page=all

[34]     “Canada, Japan agree to free-trade talks,” CBC, 25 March 2012:

http://www.cbc.ca/news/world/story/2012/03/25/harper-japan-trade.html

[35]     Shawn McCarthy, “Canada, Japan launch free-trade talks,” The Globe and Mail, 25 March 2012:

http://www.theglobeandmail.com/news/politics/canada-japan-launch-free-trade-talks/article534401/

[36]     Jason Fekete, “Secret documents show how hard Conservative government lobbied to get into TPP talks,” Reuters, 12 June 2012:

http://o.canada.com/2012/06/19/secret-documents-show-how-hard-conservative-government-lobbied-to-get-into-tpp-talks/

[37]     Andy Hoffman, “Japanese PM looks to join Trans-Pacific Partnership trade deal,” The Globe and Mail, 11 November 2012:

http://www.theglobeandmail.com/report-on-business/international-business/japanese-pm-looks-to-join-trans-pacific-partnership-trade-deal/article5186241/

[38]     Mark Kennedy, “Stephen Harper says Canada-India trade links must come faster,” The Montreal Gazette, 8 November 2012:

http://www.montrealgazette.com/business/Stephen+Harper+says+Canada+India+trade+links+must+come+faster/7518117/story.html

[39]     Frances Russell, “True colours of Mulroney, Harper revealed,” Winnipeg Free Press, 20 May 2009:

http://www.winnipegfreepress.com/opinion/westview/true-colours-of-mulroney-harper-revealed-45462077.html

[40]     Terry Milewski, “Ending Canada’s ‘benign dictatorship’,” CBC, 30 March 2011:

http://www.cbc.ca/news/politics/canadavotes2011/story/2011/03/30/cv-milewski-harper-coalition.html

[41]     “5 things to know about the Canada-China investment treaty,” CBC, 27 October 2012:

http://www.cbc.ca/news/politics/story/2012/10/27/pol-the-house-fippa-with-china.html

[42]     Campbell Clark, “China calls for free-trade deal with Canada within a decade,” The Globe and Mail, 22 September 2012:

http://www.theglobeandmail.com/news/politics/china-calls-for-free-trade-deal-with-canada-within-a-decade/article4561149/

[43]     Shawn McCarthy and Steven Chase, “Ottawa approves Nexen, Progress foreign takeovers,” The Globe and Mail, 7 December 2012:

http://www.theglobeandmail.com/globe-investor/ottawa-approves-nexen-progress-foreign-takeovers/article6107548/

[44]     Heather Scoffield, “China deals would leave Canada a resource colony: opponents,” The Financial Post, 31 October 2012:

http://business.financialpost.com/2012/10/31/china-deals-would-leave-canada-a-resource-colony-opponents/

[45]     Don Butler, “Understanding FIPA in under 1,000 words,” Ottawa Citizen, 31 October 2012:

http://www.ottawacitizen.com/business/Understanding+FIPA+under+words/7472421/story.html

[46]     Daniel Tencer, “Canada-China Foreign Investment Promotion And Protection Agreement ‘A Corporate Rights Pact,’ Council Of Canadians Says,” The Huffington Post, 1 October 2012:

http://www.huffingtonpost.ca/2012/10/01/canada-china-investment-fipa_n_1929663.html

[47]     Janyce McGregor, “5 key issues in the Canada-EU trade deal,” CBC, 22 November 2012:

http://www.cbc.ca/news/politics/story/2012/11/21/pol-ceta-canada-europe-trade-list.html

[48]     Greg Keenan, “Free-trade deal with EU could cost thousands of Canadian factory jobs,” The Globe and Mail, 27 October 2010:

http://www.theglobeandmail.com/report-on-business/economy/free-trade-deal-with-eu-could-cost-thousands-of-canadian-factory-jobs/article1215960/

[49]     Campaigns, “Canada-European Comprehensive Economic and Trade Agreement (CETA),” The Council of Canadians:

http://canadians.org/trade/issues/EU/index.html

[50]     Daniel Tencer, “Canada-EU Free Trade: Leaked EU Document Sheds Light On Negotiations,” The Huffington Post, 26 November 2012:

http://www.huffingtonpost.ca/2012/11/26/canada-eu-free-trade-leaked-document_n_2192949.html

[51]     Althia Raj, “Canada Trade Deal With European Union: CETA May Benefit EU Over Canada, Officials Say,” The Huffington Post, 17 October 2012:

http://www.huffingtonpost.ca/2011/10/17/canada-may-get-short-end-of-stick-in-economic-and-trade-agreement-with-eu_n_1014707.html

[52]     CERT, “Declaration in support of a Canada-EU trade and investment agreement,” The Canada Europe Roundtable for Business.

[53]     “The Canadian and EU business communities’ call for a successful conclusion to the Comprehensive Economic and Trade Agreement (CETA),” BUSINESSEUROPE, 29 October 2012.

[54]     Press Release, “Harper Government Launches Next Phase of Canada’s Pro-Trade Plan for Jobs, Growth and Long-Term Prosperity,” Foreign Affairs and International Trade Canada, 29 May 2012:

http://www.international.gc.ca/media_commerce/comm/news-communiques/2012/05/26a.aspx?lang=eng&view=d

[55]     Ibid.

“A Lot of People Believe This Stuff”: Bill Clinton, Barack Obama, and the Politics of Public Relations

“A Lot of People Believe This Stuff”: Bill Clinton, Barack Obama, and the Politics of Public Relations

By: Andrew Gavin Marshall

“Political language… is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.” - George Orwell, “Politics and the English Language,” 1946

“It’s important, because a lot of people believe this stuff.”  – Bill Clinton, speaking at the Democratic National Convention, 5 September 2012

In case you were unaware, Bill Clinton gave a speech at the Democratic National Convention on the evening of September 5, which, the media tells us, revealed Clinton’s “special gift”[1] to “give a boost to Obama’s middle-class hero image.”[2] The speech has been hailed as Clinton’s “come back,”[3] and a “spirited defense” of Obama..[4] The “rock star,”[5] Bill Clinton, received heaps of praise from celebrities who endorsed his speech, and it’s obviously very important that the public know what Whoopi Goldberg, Chris Rock, and Alicia Silverstone think of the speech, so lucky for us, the media tells us. It was, “fantastic… common sense,” that Clinton was “up there teaching,” and “breaking it down.”[6]

But it’s also important that the public receive more ‘expert’ analysis from political commentators and reporters, so CNN reporter Wolf Blitzer explained that he had been watching Clinton since 1992 when he was CNN’s White House correspondent, and that, “[t]his may have been the best speech I have ever heard Bill Clinton deliver,” while GOP strategist Alex Castellanos proclaimed, “This will be the moment that probably re-elected Barack Obama.” Brit Hume on Fox News (“fair and balanced”) said that Clinton, “is the most talented politician I’ve ever covered and the most charming man I’ve ever met… No one in my view can frame an argument more effectively than he can.” Anderson Cooper shared his wisdom and analysis, explaining that, “[t]he level of detail in the speech was quite surprising… and yet there was a personality.” Chris Matthews on MSNBC chimed in, “I wouldn’t want to be the guy fighting Bill Clinton if the issue is Barack Obama.” But of course, there was some “intelligent criticism” of the speech within the media, so it wasn’t all praise. For example, John King of CNN noted that the speech could “use an editor,” because as various other critics noted, it was “too long.”[7]

So what exactly did Bill Clinton say that was so inspiring and praiseworthy? Well, he went up on stage, and for fifty minutes, successfully achieved the highest degree of hypocrisy possible. His speech could not have been better constructed if it had been written by a public relations firm, itself. And perhaps it was. After all, it’s not that the Clinton’s don’t have a cozy relationship with public relations firms, as Burson-Marsteller, the most prominent PR firm in the United States, ran Hillary Clinton’s failed presidential campaign in 2008.[8] The firm is venerable and highly respected, and has built a very prominent resume of individuals and institutions it has represented, such as Ceausescu in Romania, the Saudi royal family, the Nigerian government when it wanted to discredit claims of genocide during the Biafran war, the Argentine dictatorship which killed roughly 35,000 of its own people, the Indonesian government as it committed genocide in East Timor (ultimately eliminating a third of the entire population while Bill Clinton armed it to do so). Burson-Marsteller also represented Union Carbide following the Bhopal gas leak that killed 15,000 people in India, among other reputable clients.[9]

Controlling the “Bewildered Herd” of “Ignorant and Meddlesome Outsiders”

I mention the public relations industry, because elections are essentially run by the PR industry, and public relations is the officially-sanctioned term for “propaganda.” It is no small coincidence that the founder of the public relations industry, a man named Edward Bernays, also happened to have literally written the book on Propaganda (1928), in which he wrote, “The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country.” He added: “it remains a fact that in almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons… who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind, who harness old social forces and contrive new ways to bind and guide the world.” Naturally, explained Bernays, this is merely “a logical result of the way in which our democratic society is organized.”[10]

Bernays of course had experience. In 1917, he was asked by President Woodrow Wilson to join the Committee on Public Information (CPI), a propaganda agency created by the government to rally the American population to support entering World War I, which was popularly perceived at the time as “a rich man’s war.” The CPI was highly successful, and the American people went to war. Bernays and the other propagandists who were involved were so impressed with their manipulation of the public during war-time, that they felt they could do it during peace time as well. Thus, after the war, Bernays soon founded one of the first PR firms in the United States. Walter Lippmann, the most influential intellectual in the United States at that time, encouraged President Wilson to create the CPI, and even suggested the concept of “making the world safe for democracy,” which became Wilson’s “idealistic” democratic vision for the world, still discussed in political science today. Lippmann and other intellectuals of the era recommended using social scientists and other intellectual elites to undertake “systematic intelligence and information control” as a “regular organ of popular government.” This was what Lippmann called the “manufacture of consent.”[11]

Lippmann wrote that, “propaganda, as the advocacy of ideas and doctrines, has a legitimate and desirable part to play in our democratic system.” Harold Lasswell, another leading political scientist of the era, wrote that, “[p]ropaganda is surely here to stay.” In his 1922 book, Public Opinion, Lippmann wrote that for the “manufacture of consent,” society needed “intelligence bureaus” or “observatories” which would distribute “disinterested” information to journalists, governments, businesses, and the society at large. This essentially is the function of think tanks and PR firms. The term “disinterested” is used to refer to the concept that the information and ideas are not shaped by emotional, irrational, or utopian concepts like “morality” or “ethics,” they are simply facts without a perceived ideology.[12]

In his 1925 book, The Phantom Public, Lippmann defined democracy for the modern state-capitalist system, which would not only be firmly entrenched within the United States, but exported around the world. Lippmann was quite emphatic: “A false ideal of democracy can lead only to disillusionment and to meddlesome tyranny.” That “tyranny,” of course, was the public interfering in the affairs of the state. Lippmann wrote that, “the public must be put in its place… so that each of us may live free of the trampling of a bewildered herd.” Referring to the public as “interested spectators of action,” Lippmann explained that, “the opinions of the spectators must be essentially different from those of the actors,” designed in such a way that the rulers of society – the corporate-financial elite and the intellectuals that serve them – would be able to continue controlling society with “the least possible interference from ignorant and meddlesome outsiders.” What Lippmann recommended in 1922 as the “manufacture of consent,” Bernays recommended in 1923 as “the engineering of consent.” Engineering consent, Bernays later wrote in 1947, “affects almost every aspect of our daily lives.” He explained: “When used for social purposes, it is among our most valuable contributions to the efficient functioning of modern society.”[13]

Presidents and politicians are products of public relations. We are presented with officially sanctioned concepts of democracy, politics, and ideology. We are subsequently given a ‘choice’ between – usually two – different accepted views. This is called “balance.” The difference between the views are primarily tactical, but the fundamentals remain the same. Thus, no matter the political party in power, war and empire are on the agenda, but different views can proliferate on the tactics and assessment of the results of imperial policies. Imperialism itself cannot be questioned, or even acknowledged; it’s simply accepted. The same goes for serving the interests of the corporate and financial elite, which of course are the main actors in determining foreign imperial policy itself. Imperialism and war for the benefit of a parasitic economic and financial elite, however, is not something which the public could openly accept, so we are given different words, definitions, and mythologies of our society and its policies, so that the “invisible governors” – as Bernays referred to them – may continue to “manufacture consent” to the system; thus maintaining ‘social order’, which means to maintain the social hierarchy of power.

Idealistic Democracy in the Land of Simplistic Hypocrisy

When we discuss Woodrow Wilson as president, we give warm and boisterous praise to his “enlightened” vision of “democratic idealism.” In fact, so consistent and engrained is our officially sanctioned respect for Woodrow Wilson’s profound vision, that it was given a special name: “Wilsonian idealism” or “Wilsonian liberalism,” to “make the world safe for democracy.” It was conceived of as a kind of “internationalist” vision for world order predicated on “international cooperation and integration,” countering political realism which viewed the international arena as one of anarchy where states act in their own self-interest.[14]

Wilson of course, was not concerned with acting in “self-interest,” because he had an enlightened vision of “liberal idealism.” No doubt it was this “idealism” upon which Wilson based his invasions and occupations of Haiti and the Dominican Republic, literally sending the Marines into the Parliament to disband it at gunpoint, killing tens of thousands of Haitians and crushing a liberation struggle in the country-side, and re-writing the constitution to allow American corporations to control the resources and buy land. In fact, Franklin D. Roosevelt, another democratic “idealist” president, was the Assistant Secretary of the Navy during the Haitian occupation (which began in 1915 and lasted until the Roosevelt administration in 1934). FDR took credit for writing the Haitian constitution, and claimed that he was responsible for “running several Caribbean republics.” Roosevelt referred to the Haitian occupation and his work on the new constitution as “an excellent piece of constructive work,” for which “the world ought to thank us.” He explained the common view of elites toward the general population – foreign and domestic – when he explained that in relation to Latin Americans, “You have to treat them like children.” The American media, with the New York Times at the helm, praised the ruthless occupation as a way for America to “advance” the Haitians, who were “a horde of naked niggers.” Wilson’s Secretary of State William Jennings Bryan reflected on his profound knowledge of Haitians when he stated, “Dear me, think of it! Niggers speaking French.”[15]

Wilson occupied the Dominican Republic in 1916, the neighbouring country to Haiti on the island once called Hispaniola when Columbus landed there and eradicated the indigenous population. When the U.S. ended the occupation of the Dominican Republic in 1924, a US-army trained commander, Rafael Trujillo, rigged the elections and became the country’s new dictator. President Hoover congratulated Trujillo on his “auspicious” victory. When FDR became president in 1933, he implemented his “Good Neighbor” policy for Latin America, meaning that America would be a “good neighbour” to ruthless tyrants like Trujillo so long as they served American interests. During this time, Trujillo, America’s “staunch friend” – as one American businessman referred to him – murdered roughly 25,000 Haitians in Dominican territory in an effort to “purify” and protect the ethnic superiority of the Dominican race. The genocide, however, created bad publicity for America’s support of Trujillo, since it drew obvious comparisons to similar dictators of the same era in Italy and Germany. So FDR’s administration undertook a “massive public relations effort” for the Trujillo regime, which included having biographies written about Trujillo in which he was described as emblematic of “democratic” and “humanitarian” virtues.[16]

In his speech at the Democratic National Convention, Bill Clinton referenced all the good work he has done for Haiti, explaining that he was “honored” to have worked with both president’s Bush and Obama in Haiti through various crises in the impoverished country. He presented this as evidence of how he is not a divisive politician, but seeks to work “with Democrats, Republicans and independents,” and that they “focus on solving problems and seizing opportunities.”[17] Well, how is Clinton’s record in Haiti? Should this question not be asked?

After the American occupation of Haiti ended, a dynastic dictatorship emerged as father and son Duvaliers ruled Haiti with an iron fist, and US support. When the dictatorship could no longer be sustained, it collapsed in the mid-80s, and following a series of military governments, Haiti undertook mass democratic elections in 1990, through which a populist priest and practitioner of Liberation Theology (the view that the purpose of Christianity was to fight for and liberate the poor from their poverty and oppression), Jean Bertrand Aristide, became victorious in securing the presidency. Aristide campaigned on empowering the extremely poor peasant population, which infuriated the local economic elite, who called him “the devil,” as well as U.S. corporate investors, since he attempted to implement the rather radical policy of doubling the minimum wage in the poorest country in the Western Hemisphere. This was obviously unacceptable and “irresponsible,” so in September of 1991, less than a year after being elected President, Aristide was deposed in a military coup. The CIA had formed close links with Aristide’s political opponents, and undertook a campaign to discredit him. Officially, the American government denounced the coup, though within days urged the military dictatorship “toward sharing power with the Parliament.” Economic sanctions were imposed, but quickly lifted in 1992 for the benefit of American corporations in Haiti as the State Department sought an “acceptable” political compromise. Aristide was pressured to sign an agreement that would allow him to “share” power and return to Haiti to continue the rest of his term as little more tan a figurehead.[18]

When Clinton came to power in 1993, his administration continued the process of negotiations aiming to bring Aristide into the “solution,” but only “when conditions permit,” and he agreed to share power with the US-favored candidate in the 1990 elections, a former World Bank official who was installed by the military coup. Meanwhile, the military government had killed thousands of Haitian civilians who were Aristide supporters. When an agreement was announced with Aristide, the military government in Haiti – armed by the US – quickly accelerated its murderous campaign. The US negotiations with Aristide focused on the perceived “need” for Aristide to “share” power with the military, because the Americans – who created the Haitian military force during the first US occupation of the country – viewed it as a source of “stability.” However, the military government refused to have Aristide return and share power with him in any capacity. Thus, Clinton’s National Security Advisor Anthony Lake instructed his staff at the National Security Council (NSC) to construct “Haitian invasion scenarios.”  The United States, however, was a promoter of “democracy,” so it needed to install a “civilian” government, and not be seen supporting a ruthless military dictatorship so openly. Aristide was given advice by the United States Agency for International Development (USAID), run by the U.S. State Department, as well as the World Bank and IMF, who “educated” Aristide on “suitable” economic plans for Haiti once he returned to power. It should be noted, however, that the CIA, several State Department officials, as well as several Democratic and Republican politicians felt it was a bad idea to return Aristide to power, and commonly referred to him as a “psychopath.” Obviously, someone would have to be a “psychopath” to attempt to raise the minimum wage in the poorest country in the Western Hemisphere.[19]

In 1994, Clinton invaded Haiti with 20,000 troops in what was called “Operation Uphold Democracy,” which not only re-installed Aristide to finish his term, but ensured that the coup leaders and perpetrators of atrocities were not held to account for their crimes, the result of a deal brokered by the “human rights” president Jimmy Carter, whom Clinton dispatched to Haiti in order to negotiate a deal with the military. The United States occupation forces handed over “control” of Haiti to a United Nations ‘mission’ of 6,000 soldiers in 1995, with US forces expected to leave in 1996, when Aristide’s term finished and he was replaced with a business-friendly leader. Though in 1995, Clinton’s Deputy Secretary of State Strobe Talbott, reassured the U.S. Senate that, “even after our exit in February 1996, we will remain in charge by means of USAID and the private sector.”[20]

This is called the “restoration of democracy.” While Clinton sent 20,000 troops to Haiti to “restore democracy,” Obama sent 10,000 troops to Haiti to “restore order” following the devastating earthquake which killed several hundred thousand people who were living in the slums that were created through World Bank and IMF policies of austerity and structural adjustment, many of which were imposed during the Clinton administration. When Obama sent his troops to Haiti, he pledged that the “United States is in Haiti for the long haul.”[21] Indeed the U.S. has been invading and exploiting Haiti and punishing its population for over 200 years, so why stop now?

“The Price is Worth It”: How To Get Away With Murdering Half a Million Children

In his speech at the DNC, Clinton also praised Obama’s “successful end of the war in Iraq.” Clinton, of course, has had a great deal of experience when it comes to Iraq. After Iraq had stopped being a pliant U.S. puppet, George Bush Sr. waged a brutal war against the country, after which economic sanctions were imposed, lasting through the duration of the Clinton administration. The sanctions, in fact, began in 1990 before the first Gulf War, which destroyed the entire infrastructure of the country. Margaret Thatcher explained that the purpose of the Iraq war was to “destroy the entire military, and perhaps industrial, potential of that country.” The sanctions from 1990 to 2000 resulted in the deaths of roughly 1.5 million Iraqis, over 500,000 of which were children under the age of 12. The New York Times praised the sanctions as one of the “greatest successes” for the UN in Iraq. Three top UN officials who were sent to Iraq to monitor the sanctions and provide humanitarian assistance resigned in protest against the sanctions, explaining that they were causing immense harm to the civilian population. When Clinton’s Secretary of State Madeleine Albright was asked in 1996 about the 500,000 children killed by the sanctions, Albright stated, “we think the price is worth it.”[22]

Obama of course, has learned a valuable lesson from Clinton, and imposed sanctions on Iran in order to punish the Iranian population. The day before Clinton spoke at the DNC endorsing Obama, the Financial Times reported that the US-imposed sanctions on Iran were having the predictable effect as they were hitting medical patients especially hard, as deliveries of medicine and raw material for Iranian pharmaceutical companies was either stopped or delayed, as “access to medicine has become increasingly limited.” One Iranian medical NGO official commented, “This is a blatant hostage-taking of the most vulnerable people by countries which claim they care about human rights.”[23]

However, these are exactly the intentions of sanctions. When Castro overthrew the U.S.-supported dictatorship in Cuba in 1959, Cuba became the primary enemy of the United States because, in the words of a 1960 National Intelligence Estimate, of Cuba’s “successful defiance of the U.S.” As the Eisenhower administration – and the Kennedy administration following him – designed and implemented harsh economic sanctions, top officials were quite blunt in their internal discussions about the effects and intent of the policies. Eisenhower noted that if the Cuban people “are hungry, they will throw Castro out,” since the “primary objective” of the sanctions, the president noted, was “to establish conditions which will bring home to the Cuban people the cost of Castro’s policies.” Kennedy administration officials explained that the sanctions – and the accompanying covert warfare – were designed to alienate “internal support” in Cuba to Castro’s government, “based on economic dissatisfaction and hardship,” which meant that US policy had to aim “to bring about hunger, desperation and [the] overthrow of the government,” explained one State Department official.[24]

“It Takes Some Brass”: Serving the Corporate Consensus with the Politics of Poverty

The media outlet, PolitiFact, reported on Bill Clinton’s DNC speech, writing that the former president “received a hero’s welcome,” and then confirmed Clinton’s statements on the economy as “true.”[25] Well, what are some things that Clinton said about the economy? One thing Clinton stated was that, “It turns out that advancing equal opportunity and economic empowerment is both morally right and good economics,” adding that, “poverty, discrimination and ignorance restrict growth.” He proclaimed that the Democrats “think the country works better with a strong middle class, with real opportunities for poor folks to work their way into it.” Clinton noted that the Republicans “want to get rid of those pesky financial regulations designed to prevent another crash and prohibit future bailouts.” Clinton, while referring to a Republican politician, noted, “it takes some brass to attack a guy for doing what you did.”[26] While the audience laughed, applauded, and cheered at that statement, the irony was lost on the fact that Clinton was doing just that: “attacking a guy for doing what [he] did.” Clearly, Clinton has “some brass” to not only do that, but to actually comment on that technique.

It’s truly an amazing exercise in absolute hypocrisy to see a man stand up in front of millions of people and blame Republicans for wanting to get rid of “pesky financial regulations” when his administration was largely responsible for getting rid of the most important “pesky financial regulations” – such as the repeal of the Glass-Steagall Act – which Obama has obviously not even considered re-instating. The economic crisis – which is only going to get worse, since Obama has ensured that the next financial crisis will be much more severe than the last one – was not caused by a political party, it was caused by a socio-political and economic ideology that we call ‘neoliberalism.’ This ideology was and still is endorsed and promoted by Republicans and Democrats alike. So from Reagan onwards, every single U.S. president is responsible for creating and making the economic crisis worse, because they implemented policies which were designed to benefit the few at the expense of the many. And when the system crashes, as it inevitably does, the government moves in to save the banks and financial institutions from their crimes, and hand the people the bill.[27]

Under Bill Clinton, the derivatives market exploded as financial institutions were deregulated, major mergers approved – creating what we now call “too big to fail” banks – which since Obama’s “economic recovery” are bigger and more dangerous than ever. Under Clinton, the Federal Reserve kept interest rates at historic lows and provided liquidity (money) to help build the housing bubble, with which Clinton’s unregulated derivatives market saw an explosion in speculation, not only allowing banks and hedge funds to help create the financial crisis, but also to profit from it, as Goldman Sachs did (which was Obama’s main campaign contributor in his 2008 election). Clinton’s administration had the Department of Housing and Urban Development pressure the mortgage giants – Fannie Mae and Freddie Mac – to provide mortgages to low-income borrowers, which helped build the housing bubble under an illusion of prosperity. The Glass-Steagall Act, which was put in place in 1933 in response to the Great Depression, was designed to prevent another Great Depression. So of course, banks like JP Morgan, Citicorp and others lobbied heavily to have it repealed (as a barrier to “growth”), and the Federal Reserve and Clinton’s Treasury Department responded to the demands of their constituents – the banks and corporations that they represent in government – by dismantling these “pesky financial regulations.” Thus, Alan Greenspan at the Fed, Robert Rubin and Larry Summers at the Treasury were among the key architects of the economic collapse, along with their constituents at JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs.[28]

So naturally, when Obama became president, it was important to appoint all the people who caused the crisis to positions in which they are responsible for solving the crisis they helped create. So Obama appointed Larry Summers to be his chief economic adviser, and of course, Timothy Geithner who previously served as President of the New York Federal Reserve, where he was appointed to that position by the major Wall Street banks he was to represent. Geithner was also a protégé of Clinton’s Treasury Secretary Robert Rubin. Rubin had since become an executive at Citigroup, rewarded for his work in dismantling “pesky financial regulations” and thus able to profit from the crisis he helped create. Summers had previously shown his propensity for “morally right and good economics” – as Clinton described it – when he was Chief Economist at the World Bank in 1991, where he wrote a secret memo advocating Western nations and corporations to dump toxic waste in poor African countries because by the time the effects of cancer emerge, statistically speaking, the population would already be dead because their life expectancy was so low. Thus, wrote Summers, “I think the economic logic behind dumping a load of toxic waste in the lowest-wage country is impeccable and we should face up to that.”[29]

Clearly, Clinton’s economic policies as president – and those of which he has endorsed in Obama’s administration – were a triumphant success for the dominant banks, financial institutions and corporations that own the government. Despite all the evidence of Goldman Sachs having engaged in repeated criminal activity in causing the financial crisis and profiting off of it (not to mention getting massive bailout funds from Obama), Obama’s [In]Justice Department recently announced that the U.S. government “will not prosecute Goldman Sachs.”[30] And of course not, why would Obama prosecute the bank that was his number one financial contributor in his 2008 election campaign. Though of course, it should be noted, that Obama’s 2008 campaign had some diversity among its top donors: JPMorgan Chase, Citigroup, and UBS, among others. The financial institutions preferred Obama over John McCain in 2008, and it was a smart investment for them.[31] After all, Obama’s bailouts gave the banks $16 trillion.[32]

No surprise then, to see that Obama’s top campaign donors in 2012 include Wells Fargo, JPMorgan Chase and Goldman Sachs. And since the U.S. Supreme Court voted in January of 2010 to allow corporations to contribute as much money as they want to election campaigns – under “constitutional free-speech rights” – campaign spending has increased dramatically.[33] Thus, while Wall Street gave the Obama campaign $16 million in 2008, that number has soared during the current election, with the same contributors donating to Romney.[34] Among Romney’s current top supporters are Morgan Stanley, Bank of American, JPMorgan Chase, and Goldman Sachs, with Obama getting more support from Microsoft, Google, IBM, and others.[35] While Obama parades around calling Wall Street executives “fat cats,” Obama and the Democratic National Committee raised more than $14 million from the “fat cats” through the end of April 2012.[36]

Clinton stated at the Democratic Convention, reflecting upon his economic policies of the 1990s, “We could see that the policies were working, that the economy was growing… [and] by 1996 the economy was roaring,” neglecting to mention it was a roaring bubble built upon speculation and debt. This, of course, received a thunderous applause for Clinton as he spoke, adding that President Obama “has laid the foundation for a new, modern successful economy of shared prosperity. And if you renew the president’s contract, you will feel it. You will feel it.”[37] He had to repeat that part because people haven’t been “feeling it,” so it was important to remind them that current conditions are no basis for assessing the future. One must assess the future based upon pure “faith.” Hence, “you will feel it” is repeated despite all the policies that indicate otherwise.

Neil Barofsky, the special inspector general responsible for oversight of Obama’s bailout program, recently published a book entitled, “Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street,” in which he wrote, “I had no idea that the U.S. government had been captured by the banks,” but this became clear as the bailouts were “setting the country up for potentially catastrophic losses.”[38] In his final report as inspector of the bailouts, Barofsky wrote: “The prospect of more bailouts will continue to fuel more bad behavior with potentially disastrous results.” In other words, the concept of “too big to fail” is an insurance policy for banks, telling them that the government will always be there to save them, and thus, they have no incentive to engage in safe financial practices, and are actually encouraged to continue making highly risky and speculative investments, paving the way for the next financial crisis at which time they will be bailed out again. Barofsky called the bailouts a “colossal failure,” under which the Treasury Department “made almost no effort to hold [the banks] accountable, and the bounteous terms delivered by the government seemed to border on being corrupt.”[39] Just more of Clinton’s “morally right and good economics,” no doubt.

“Free Trade” and Costly Poverty: A Bi-Partisan Consensus

Clinton of course, also implemented the NAFTA agreement, which is a protectionist corporate-dominated system of economic integration and exploitation between Mexico, Canada, and the US, undermining labour, de-industrializing the northern countries, exploiting the labour of poor Mexicans, and undertaking a concerted assault against the middle class. Thus, it is called a “free trade agreement,” though it consists of thousands of pages of rules and regulations expanding corporate rights and domination of the economy. This is perhaps what Clinton was referring to when he said that Democrats work towards “advancing equal opportunity and economic empowerment” in order to provide “real opportunities” for “a strong middle class.” Those statements were of course met with thunderous applause and cheers.

Back during the 2008 campaign, both Barack Obama and Hillary Clinton said that they would renegotiate NAFTA, and even suggested that the United States would pull out of the agreement. While campaigning, they made these statements at a debate in Cleveland, Ohio, where NAFTA is “wildly unpopular with blue-collar workers,” due to all the manufacturing jobs that were lost as a result of the trade agreement. Hillary Clinton stated that she would “renegotiate it on terms that are favourable to all of America.” Obama agreed with Hillary at the debate, stating, “I will make sure that we renegotiate in the same way that Senator Clinton talked about, and I think actually Senator Clinton’s answer on this one is right.” Obama said that he would “ensure that we actually get labour and environmental standards that are enforced… That is something that I have been consistent about.”[40]

The Canadian business and financial elite – and their mouthpieces in the media – immediately declared the sky to be falling as a result of presidential hopefuls suggesting to renegotiate NAFTA. It was leaked to the Canadian media that a senior member of Obama’s campaign team contacted the Canadian Consulate in Chicago to inform them that when Obama talks about renegotiating or “opting out” of NAFTA, “it was just campaign rhetoric not to be taken seriously.” In other words, he was just lying to get into power. The statements were made by Austan Goolsbee, Obama’s senior economic adviser during his campaign.[41] Goolsbee further informed Canadian officials that Obama’s stand on free trade during the campaign trail was “more reflective of political maneuvering than policy,” and that Obama’s language “should be viewed as more about political positioning than a clear articulation of policy plans.”[42] In other words, it is important to completely ignore everything Obama says while he is campaigning for president, because it is all lies meant to be consumed by the “ignorant and meddlesome outsiders,” the voting public. It does not reflect the actual policies and plans of Obama, which the public is not to be informed of.

So why lie about NAFTA? In Ohio, where the pledges to renegotiate NAFTA were made, the trade agreement led to the loss of roughly 200,000 manufacturing jobs, while the U.S. as a whole lost some 3.1 million jobs between 1994 and 2009 due to NAFTA, which also led to a trade deficit with Mexico and Canada that was $9.1 billion in 1993, and has since risen to $138.5 billion in 2007. During the presidential campaign, national polls revealed that 56% of the American population was in favour of renegotiating NAFTA. In Mexico, hundreds of thousands of people had marched in opposition to NAFTA, demanding renegotiations, and in Canada, 61% of the population favour renegotiation.[43]

Public opinion polls are extensively studied by the public relations industry and political strategists, who advise politicians during their campaigns (and once they take power). Because public opinion is in favour of renegotiating NAFTA, the rhetoric of politicians must reflect public opinion, so that the politicians are viewed in a good light and get the votes they need to get into power. However, because politicians are put in power to serve the interests of corporate and financial institutions, it can only remain as rhetoric, because renegotiating is against the interests and desires of the economic and financial elite, who are, after all, the major financial contributors to electoral advertising campaigns. So public opinion must be studied so that it can be used to manipulate the public – “the engineering of consent” – but then it must also be immediately undermined and dismissed, so that policy does not actually follow public opinion. Rather, public opinion – to the best degree possible – must be influenced to follow policy.

Raymond Chretien, former Canadian Ambassador to the U.S. and nephew of former Canadian Prime Minister Jean Chretien (who implemented NAFTA in cooperation with Bill Clinton), said in November of 2008, just following Obama’s successful election, that Obama “will likely find a way to back off his election campaign promise to renegotiate” the agreement, adding, “once in power in January, once apprised of what is at stake here,” meaning, massive corporate profits, “I doubt very much that he will want to reopen that.”[44] Within less than a month of becoming president, Obama stated that his promise to renegotiate NAFTA “will have to wait”; forever, no doubt.[45] Kind of like closing the torture camp at Guantanamo.

So apart from just lying about trade agreements to get into power, what is Obama’s actual record as president on trade agreements? Negotiations were begun under the Bush administration in 2008 for the Trans-Pacific Partnership (TPP), and of course, since the difference between Obama and Bush was one of rhetoric, the negotiations continued in the same manner: secretly.

The Office of the U.S. Trade Representative (USTR) has been working for over three years on a massive so-called “trade agreement” behind closed doors, with input given only to 600 corporate lobbyists who have had access to the draft deal and negotiations, which have otherwise been kept secret from the public. Just part of Obama’s promised “transparency,” no doubt. The agreement includes the U.S., Australia, Brunei, Chile, New Zealand, Peru, Singapore, Malaysia, and Vietnam, among others. Roughly 133 Democratic representatives wrote a letter to Obama demanding access to the “secret texts” of the trade deal, with public interest groups warning that millions of jobs could be lost as a result of the agreement.[46]

While it is called a “trade agreement,” only 2 of the 26 chapters in the TPP have to do with trade, with the majority of the rest dealing with establishing corporate rights, protections, privileges, as well as constraints on “pesky” government regulations. Among these new “rights” and “privileges” for corporations (who obviously do not have enough rights and privileges as it is) include more job offshoring, protections to allow monopolies to raise prices, as well as new corporate controls established over natural resources. The deal also includes threats to food safety, land use, environmental protection, energy use and control, as well as a special chapter on “copyrights” which includes a massive threat to Internet freedom, which was previously stalled in Congress with the attempted Stop Online Piracy Act (SOPA). Obviously, dismantling Internet freedom through a corrupt institution like Congress failed due to public pressure, and thus, Congress is still too influenced by the “meddlesome and ignorant outsiders,” so it’s better that such an agreement be negotiated in secret with 600 corporations.[47]

Documents from the deal have been leaked, which is the only way that any of this information has become public. When the documents were leaked, it was reported that the Obama administration “intends to bestow radical new political powers upon multinational corporations.” In the documents, it was revealed that Obama’s administration has emerged as a very strong advocate “for policies that environmental activists, financial reform advocates and labor unions have long rejected for eroding key protections currently in domestic laws.” In other words, the already ineffective and almost-useless and toothless environmental, financial, and labour protections that exist are simply unacceptable to the Obama administration and the 600 corporations Obama is taking his orders from. The agreement stipulates that foreign corporations operating in the United States would no longer be subject to domestic US laws regarding protections for the environment, finance, or labour rights, and could appeal to an “international tribunal” which would be given the power to overrule American law and impose sanctions on the U.S. for violating the new “rights” of corporations.[48]

During his 2008 presidential campaign, Obama stated, “We will not negotiate bilateral trade agreements that stop the government from protecting the environment, food safety, or the health of its citizens; give greater rights to foreign investors than to U.S. investors; [or] require the privatization of our vital public services.” I suppose that was somewhat true, since technically it isn’t a “bilateral” agreement, but rather a “multi-lateral” agreement. Referring to the changed rules for medication – which would allow companies to increase prices and control monopolies over life-saving medications, as well as prevent poor countries from developing cheap alternatives – the U.S. manger of Doctors Without Borders Access to Medicines Campaign, stated, “Bush was better than Obama on this.” The agreement would of course grant similar rights to American corporations in the other countries of the TPP agreement, thus, it serves as a profitable and exploitative bonanza for all multinational corporations involved, and of course, all the populations from the countries involved will suffer as a result. The “international tribunal” which would dictate the laws of the countries would be staffed by corporate lawyers acting as “judges,” thus ensuring that cases taken before them have a “fair and balanced” hearing, as in, fairly balanced in favour of corporate rights over… everything else. The TPP deal is strongly supported by the U.S. Chamber of Commerce, the largest business lobby in the United States, as well as by presidential hopeful Mitt Romney, who has urged the U.S. to finalize the deal as fast as possible.[49]

Public Citizen is the organization that published the leaked document, a public research institution whose director, Todd Tucker, stated, “The leaked document… shows that in all of the major respects, this is exactly the same template that was used in NAFTA and other agreements that President Obama campaigned against,” and noted that the TPP has provisions that allow other countries to join in the future, potentially becoming a new “global trade agreement, larger than NAFTA.”[50] The American Prospect reported on the TPP leaks, writing that, “the TPP now threatens a slow-motion stealth attack against a century of progressive domestic policy,” though it’s hardly slow-motion, and the policies that exist can hardly be said to be “progressive,” but nonetheless, all the little concessions granted to the demands of the “bewildered herd” of “interested spectators” were simply too much to bear for corporate dominance. Gary Horlick, a former U.S. trade official who had spent four decades involved in trade deals, stated, “This is the least transparent trade negotiation I have ever seen.” In fact, participants in the negotiations and discussions have to sign a memorandum of understanding which forbids them from releasing any “negotiating documents until four years after a deal is done or abandoned.” In short, Obama’s TPP is a “corporate coup.”[51]

The objective with the “unprecedented secrecy” in the negotiations is to have the deal signed before the elections. As the U.S. Trade Representative Ron Kirk noted, “I believe … that we have very faithfully operated within the spirit of the Obama administration to have the most engaged and transparent process as we possibly could.” Though he explained what he meant by “as we possibly could,” when he added that, “there’s a practical reason” for all the secrecy: “for our ability both to preserve negotiating strength and to encourage our partners to be willing to put issues on the table they may not otherwise, that we have to preserve some measure of discretion and confidentiality.” In other words, the secrecy is necessary because if people knew what we were doing behind closed doors, they would oppose it, and the deal would be stopped. Yes, that is very “practical.” When asked if he would release a draft text of the agreement, Kirk replied that it was too early to do that, “there will be a time, once we have agreed on text, that we may – as we have with other agreements – be able to release that.” In other words: “maybe, and by maybe, I mean… nope!” Meanwhile, other nations don’t want to be left out of such an ambitious and “prosperous” trade agreement, as Japan, Canada, and Mexico have been lobbying to be included. But this would require the three countries to implement changes to their already-existing policies which would allow them to even be considered to enter the TPP. In other words, even Mexico doesn’t meet the required standards of desirable corporate exploitation and domination to be considered.[52]

All the secrecy is very important, because as public opinion polls show, the entire population is adamantly opposed to these types of negotiations. An opinion poll from 2011 revealed that the American population has – just over the previous few years – moved from “broad opposition” to “overwhelming opposition” to NAFTA-style trade deals. A major NBC News-Wall Street Journal poll from September of 2010 revealed that “the impact of trade and outsourcing is one of the only issues on which Americans of different classes, occupations and political persuasions agree,” with 86% saying that outsourcing jobs by U.S. companies to poor countries was “a top cause of our economic woes,” with 69% thinking that “free trade agreements between the United States and other countries cost the U.S. jobs,” and only 17% of Americans in 2010 feel that “free trade agreements” benefit the U.S., compared to 28% in 2007. A Democratic Party polling firm revealed that 45% of voters were much more likely to support a Democratic candidate if the candidate pointed out how their opponent supported various “free trade agreements” negotiated by George Bush. The same polling agency revealed in 2010 that Americans do not feel “warmly” towards corporations and banks, with only 29% of voters feeling “warm” toward corporations (compared to 13% among non-voters), and 12% of voters felt “warm” toward banks (compared to 16% among non-voters). These are lower ratings than those for Obama, Sarah Palin, the GOP, Democrats, Newt Gingrich, the NRA, labor unions, and much more. Polling showed that voters who vote for Democrats cited “job offshoring” as “the most important issue facing the country,” and felt that Republican support for offshoring was the “most important reason to not vote Republican.”[53]

The extensive polling, which politicians are well aware of, reflects a view that citizens look at corporations and banks unfavorably, and that issues of “free trade” and “job offshoring” feature extremely high in their concerns, and whether Democrat, Republican, or Independent, the population is overwhelming in opposition to “free trade” agreements. So, the lesson from all this research on public opinion is not to change the policy to meet the demands of the public, but rather to change the discussion. So “free trade” agreements are simply not discussed, hence the enormous secrecy behind the TPP. Since corporations and banks are viewed so unfavorably, you simply remove them from the discussion. After all, it is the corporations and banks that the politicians are there to serve, and you don’t want to bad mouth your bosses in public too much or too loud (unless it’s “just campaign rhetoric”). Thus, when it comes to blaming the economic crisis on someone, the discussion must be simplified to an absurd little fairy tale in which you remove facts from reality, and create an image and establish a political discourse in which it was either: a) the Republicans did it, or b) the Democrats did it. By framing the discourse at this very basic, black and white manner, you immediately divide people against each other, instead of uniting them in opposition to the banks and corporations which control the politicians and the government. This is done for obvious reasons. You can’t expect a parasite to help you find a way to get rid of parasites. That’s why public relations was invented.

“Jobs, jobs, jobs. Jobs jobby-jobs, jobby job-jobbin… Jobs.” – Every Politician Ever

When politicians blather about, they almost always mention this magical word called “jobs.” They usually state that their intention is to “create jobs” or that they have already “created jobs.” This is taken as a testament to their tireless work on behalf of the population that elected them. Jobs are good. So if politicians create jobs, they are doing good… right? Well, what if the word “jobs” meant something different when politicians say it? Perhaps, it would be helpful to seek a definition, so that we can translate political language and understand what is really being said. After all, if you only speak English, and you’re listening to someone who only speaks Spanish, you might recognize a couple of words now and again, but ultimately, you need a translation in order to understand what is being said. As Noam Chomsky has pointed out in countless public speaking events, when politicians say “jobs,” what they mean to say is, “profits.” Perhaps this is worth investigating, no?

First, we must ask some basic questions. Why are jobs important? Because they provide a means of living, of earning income, and thus, generating wealth and prosperity for all. That’s the story, anyway. But essentially we can deduce that jobs are important because they provide income, which we depend on to live. So, if we are to talk about jobs, we have to talk about income.

In June of 2012, the OECD – an international organization of economists representing 34 of the wealthiest countries on earth – released a report noting that the United States is facing “record long-term unemployment, income inequality and lack of investment in education and innovation.” The report noted that for the U.S., “income inequality and relative poverty are among the highest in the OECD.” Only Chile, Mexico, and Turkey rank higher among OECD nations in terms of income inequality. The chances of staying poor are higher in the U.S. than in Europe. As Deputy Secretary-General of the OECD and former State Department official Richard Boucher explained, “If your parents are poor, the chances are you are going to stay poor.” As the comedian George Carlin once said, “It’s called the American Dream, because you have to be asleep to believe in it.” The OECD report also noted, “the ongoing tide of foreclosures will continue to put downward pressure on house prices.” Just more of that “economic recovery” that we are told we are experiencing. Long-term unemployment in the U.S. is especially bad, with 40% of the unemployed – that’s officially 5.3 million Americans – have been out of work for 27 weeks or more. As the report also noted: “Although the middle class have seen their taxes remain roughly constant, or slightly increase, average income taxes have significantly declined for the most wealthy, especially the 1% top earners.”[54]

In 2008, the average household income for the top 1% was $1.2 million, though the percentage is highly skewed, as entry to the top 1% starts at $380,000. The share of total national income going to the top 1% reached an 80-year high in 2007, of 23.5% (and 17.6% in 2009 as the financial market deflated). For the top 0.1%, the inequality is even more pronounced. Their share of total income for the United States was 12.3% in 2007, sinking to a “still disproportionate” level of 8.1% in 2009 with the financial crash. Though this is a general trend in most countries of the OECD nations, it “began sooner, and has gone further, in America.” Increasingly, those who are within the top 1% work in finance, a trend which has increased faster than any comparable business between 1979 and 2005. In 1979, 8% of those within the top 1% worked in finance; in 2005, 13.9% of those in the top percentile worked in finance. For the top 0.1%, in 1979 roughly 11% were in finance, and in 2005 roughly 18% were in finance. The last time that income inequality was even comparable to the present day situation was during the Great Depression.[55]

Nobel Prize winning economist Joseph Stiglitz said in June of 2012 that the United Sates is “no longer the land of opportunity” and “the ‘American dream’ is a myth.” As he detailed in his newest book, The Price of Inequality, “America has the least equality of opportunity of any of the advanced industrial economies.” This inequality will only widen in the coming decades, he warned, because the lack of mobility makes it a reinforcing system, and America will become a two-class society: “People will live in gated communities with armed guards. It’s an ugly picture. There will be political, social and economic turmoil.” Stiglitz, however, said there was a solution: eliminating “corporate welfare” and policies that “create wealth but not economic growth.”[56] In other words, instead of just creating profits for the few, focus on prosperity for the many. However, all U.S. administrations – whether Democrat or Republican – have done the exact opposite.

Between 1979 and 2006, the share of national income that went to the top 1% doubled, while the top 0.1% have amassed a larger share of the national income than at any other point on record. Between 2009 and 2011, the S&P500 (the stock prices of the top 500 companies) went up by over 80%, while median household income declined by more than 10%. While the bottom 50% of Americans own 2.5% of the national wealth, the top 1% own 33.8%. The bottom half of Americans own 0.5% of stocks, bonds, and other investment assets, while the top 1% own 50.9%. As of 2007, the top 1% had 5% of the debt, while the bottom 90% had 73% of the debt. Tax rates for the richest Americans are almost the lowest they have ever been. Productivity of workers has increased exponentially since 1947, but inflation-adjusted wages have remained flat for the same period of time. Between 1990 and 2005, the average pay for a CEO increased by 300%, and corporate profits have doubled, while pay for “production workers” (labour) has increased by 4% and the minimum wage has dropped. In 1970, the top CEOs earned 45 times as much as the average worker; in 2006, the top CEOs earned 1,723 times as much as the average worker. America has more income inequality than Egypt, India, China, Russia, and Iran. This inequality is further strengthened when you examine the generational divide. Between 1984 and 2009, the median net worth of people under the age of 35 has dropped by 68%, while seniors have gotten 42% richer. Adjusted for inflation, in 1984, the median wealth of someone under 35 was $11,521; in 2009, it was $3,662.[57]

Now we get to the actual subject of “jobs,” of which Clinton spent so much time discussing in his speech at the DNC, that Democrats are better at creating “private-sector jobs” than Republicans, which was met with thunderous applause, and endless articles in the media explaining how “right” he was. Well yes, the “private sector” has added some jobs. This led Obama to say in June that the private sector was “doing fine.” When this created a public relations problem for Obama, he later clarified that it is “absolutely clear that the economy is not doing fine.” He added: “If you look at what I said… we’ve actually seen some good momentum in the private sector… record corporate profits… so that has not been the greatest drag on the economy.”[58] Indeed, this is partly true. In May of 2012, the largest 500 corporations (the Fortune 500, as they are called) reported record-breaking profits, with ExxonMobil and Wal-Mart in the top spots. Further, “the combined earnings for the Fortune 500 corporations rose 16% from 2010 to a record high of $825 billion in 2011.”[59] As profits increase, the pay for CEOs increases too, jumping just 6% in one year.[60] In June of 2012, the Federal Reserve revealed that between 2007 and 2010, Americans saw their wealth plummet by 40%.[61] So, Obama was correct in saying that we have seen “record corporate profits,” but incorrect in saying that this was not a “drag on the economy,” as it rapidly accelerates income inequality, which, quite directly, creates a drag on the economy, to say the least.

While the private sector has been adding jobs, the public sector has been cutting them, at both the state and federal level, which has been hitting black Americans the hardest.[62] This has been a significant “drag” on economic growth (it’s called “austerity”), and it is a growing trend, and will continue regardless of whether a Democratic or Republican politician is in office, because it is what is demanded by the economic and financial elite and neoliberal ideology: which dictates “austerity” and “structural reform” as a response to a crisis. When you translate those words, you get “impoverishment” and “exploitation.” This leads to “growth,” which means “profits.” Just like the word “jobs” also often means profits.

When Obama created his “Jobs and Competitiveness Council,” he asked 26 CEOs to form a group to advise the president on how to “create jobs.” The council was headed by Jeffrey Immelt, the CEO of General Electric, but also included other “job creators” like the CEO of American Express.[63] And who better than the CEO of General Electric to lead the charge on “job creation”? After all, General Electric has cut significant amounts of American jobs, so naturally, it’s a logical choice from which to appoint a “jobs czar.” Between 2000 and 2009, the number of Americans employed by GE declined from 162,000 to 134,000, a general trend which saw U.S. multinational corporations reduce their domestic American workforce by 2.9 million people in the past decade, while increasing their overseas workforce by 2.4 million. When Obama appointed GE’s CEO, Jeff Immelt as “jobs czar,” President Obama stated that Mr. Immelt “understands what it takes for America to compete in the global economy.”[64] Indeed, it “takes” undermining labour, worker exploitation, deregulation, offshoring, job insecurity, and government subsidy for corporations. In fact, the ten largest companies on Obama’s “jobs council” have shed over 91,000 jobs since 2009, with General Electric contributing 19,000 job losses to that number.[65]

So, if we do translate the word “jobs” into the word profits, then things tend to make more sense. After all, Obama appointed Immelt as his “jobs czar,” after Immelt cut 19,000 U.S. jobs but helped GE make record profits, and not only that, but GE does not pay any taxes, and instead, claims billions of dollars in tax benefits.[66] Thus, it makes more sense to think of Immelt as the “profits czar” who was put on Obama’s “profits council” to “create profits.” When you translate political language, everything suddenly makes much more sense, because it becomes comprehensible and logical. It just also happens to be rather monstrous and corrupt and infuriating, but that’s why political language is constructed: to not be properly understood. Thus, it was perfectly understandable for Bill Clinton, who implemented NAFTA which led to massive job losses, declining wages and standards of living, increased debt, offshoring, but also immense corporate profits, to explain in his speech that, “we need a lot more new jobs,” but pointed out what a good record Democrats have for “creating jobs.” Indeed, General Electric and Goldman Sachs would agree.

Public Relations Shapes the Debate

Since the economy is a disaster, it is very important to properly shape the discourse on economic issues, most especially during a political advertising campaign, otherwise it would be difficult to maintain any legitimacy. Greenberg Quinlan Rosner is a public opinion research and strategic consulting firm that often works with the Democratic Party. Essentially, it is the Democratic Party’s public relations organization. In June of 2012, James Carville, a long-time Democratic Party political strategist who was the lead strategist for Bill Clinton’s successful presidential campaign, produced a research report along with other top political strategists for Greenberg Quinlan Rosner. The report was entitled, Shifting the Economic Narrative, which suggested that the “prevailing narratives articulated by national Democratic leaders” are “vulnerable” in regards to the economic situation. In other words, the Democratic rhetoric and talking points on the economy don’t have much legitimacy. The report wrote that Democrats face an impossible situation in the elections “if we do not move to a new narrative,” or, to construct a new story. This would mean to change the story to “one that contextualizes the recovery but, more importantly, focuses on what we will do to make a better future for the middle class.” The report stated that voters “know we are in a new normal where life is a struggle – and convincing them that things are good enough for those who have found jobs is a fool’s errand,” thus, the narrative must shift to discussing “the plans for making things better.” While noting that the Democrats were losing voters on the economy, the report added that the same voters were still leaning toward the Democrats “because Romney is very vulnerable,” since “[t]hey do not trust him because of who he is for and because he is out of touch with ordinary people.” The report noted that the result was that, “it produces a fairly diminished embrace of Obama and the Democrats, the lesser of two evils, without much feeling of hope.”[67]

What voters “want to know,” wrote the report, was that Obama “understands the struggle of working families and has plans to make things better.” It doesn’t matter whether or not this is true, of course, but just that people believe it, and that they “want to know” it. The report noted that it had conducted several focus group research studies on college-educated voters who are ‘independents’ or ‘weak partisans,’ meaning that they only somewhat align with a particular political party. The research was revealing: while most had jobs, they had lower wages and fewer benefits which has left them struggling to pay for groceries. For non-college graduates, the situation is even worse, largely dependent upon food stamps and with many expressing that they feel as if they live in the 1900s where “you’re just slave labour.” Young people also have a disproportionate struggle, and are increasingly moving back home with their parents. Even in affluent suburbs people are “struggling with new realities,” such as “stagnant incomes, pay cuts, and layoffs.” Wile bills go up, paychecks either remain stagnant or go down, and this is most keenly felt in the cost of groceries, gas, cable bills, and medical insurance. These voters, the report suggested, “are not convinced that we are headed in the right direction,” with “no conceivable recovery in the year ahead that will change the view of the new state of the country.” These people, stated the report, “actually have a very realistic view,” and thus, “the current narrative about progress just misses the opportunity to connect and point forward.”[68]

While most of these voters support Obama, “they say it cannot get worse and you have to believe it will get better.” The “optimism” is predicated on the basis that “this has to be rock bottom,” which the report defined as “pessimistic optimism.” The type of “leaders” they are looking for are those “who understand the uncertainty and can lead a way forward.” While the Obama campaign talks about “jobs gained,” wrote the report, “it gains no support beyond 2008 Obama supporters.” On the economy, Romney supporters typically cannot say anything positive except that he is “not Obama.” However, many voters would still choose Romney over Obama when it comes to the economy, but when forced to choose between the two on the whole, “many of the Obama voters work to figure out a way to support him, though it lacks the kind of emotion and rationale that would drive engagement.” In other words, support for Obama tends to be driven more by the fact that he is “not Romney.” In the words of the report, it was that Obama was “the evil you know” and the “lesser of two evils.” While the patience of voters on Obama was “wearing very thin, they still want to believe in him.” All the ideas of voters that support Obama “center on what he should do – not what he has done.”[69] In other words, support is maintained in false hope.

In terms of “shifting the economic narrative,” the research report suggested that, “the strongest message was one focused on the future of the middle class – with minimal discussion of the recovery and jobs created and maximal empathy for the challenges people face.” Thus, the election needs to be about the “future of the middle class.” Two-thirds of those who partook in the focus groups responded positively to this message of helping the middle class, and they reacted well to references of the Clinton era economy (when their wealth was constructed on an illusion of debt and consumption). Ultimately, the report suggested that the best advertising campaign for the Democratic Party and Obama in particular was to “connect on a pocketbook level” and “commit to the programs voters rely on most,” such as Medicaid, Social Security and foodstamps. This rhetoric has “the capacity to be very powerful, particularly when the offer on the other side is suspicious and weak.”[70]

This “shifting message” was well received in Bill Clinton’s speech, where he talked about moving people “out of poverty [and] into the middle class,” and warning people that the Republicans will “hurt the middle class and the poor and put the future on hold.” That phrase, in particular, hit all the right points of discussion as suggested by the Democratic Party’s polling agency: to talk about the middle class, to protect the poor, and to focus on “the future.” That is why, as Clinton was finishing his speech, he said that, “If you want a future of shared prosperity, where the middle class is growing and poverty is declining… you have to vote for Obama.”[71] Or that Democrats “think the country works better with a strong middle class.” Or that Republicans want to cut programs “that help the middle class and poor children,” which, of course, is true. But the statement neglects the problematic context that while Democrats may not necessarily “cut” these programs (though again, the evidence of this is scant, but let’s imagine as a hypothetical), the Democrats do continue to create the social conditions in which the middle class and poor struggle more, and thus, become more dependent upon various programs of support. It’s sort of like saying that, “After my opponent beats you with a stick, he won’t let you have a bandaid… But after I beat you with a stick, I at least give you a bandaid.”

Brand Obama: No ‘Hope’ in Hell for ‘Change’

Since the public relations industry runs election campaigns and a good deal of public politics, it only makes sense that the industry itself acknowledges this fact. When it came to Obama’s 2008 election campaign, the public relations and advertising industry were completely ecstatic. Before even being elected president, Obama won the Advertising Age’s “marketer of the year” award for 2008, winning the vote of hundreds of marketers, agency heads and other industry representatives at the annual conference of the Association of National Advertisers. Obama’s campaign of “hope” and “change” beat Apple for the coveted prize that year. The Vice President of Rodale marketing solutions stated, “I honestly look at [Obama’s] campaign and I look at it as something that we can all learn from as marketers.”[72]

At the Cannes Lion International Advertising Awards in June of 2009, the Obama campaign claimed two of the top awards at the prestigious international advertising and public relations industry awards. His campaign won the Titanium grand prix award, for which the criteria is an advertising campaign that is “provocative, challenges assumptions and points to a new direction.” For example, “hope” and “change.” The Titanium award, according to the organizers at the Cannes ceremony, “celebrates work that causes the industry to stop in its tracks and reconsider the way forward.” The other coveted prize that the Obama advertising campaign received was the Integrated Lions award, referring to a campaign that uses three or more media, such as the press, Internet and television, which is “high standard and state-of-the-art.”[73] One advertising executive commented, “They turned (political advertising) from being one dimensional to something the whole country could contribute to. It was a fantastic idea.” Another advertising executive stated, “it was effective. You couldn’t ignore it. There will never be a political campaign that doesn’t use these tools.”[74]

That same month, Obama’s White House Press Secretary Robert Gibbs received the Public Relations Professional of the Year award from the Public Relations Society of America (PRSA), “for his groundbreaking use of new communications techniques and technologies, as well as successful delivery of campaign messages to a broad electorate.” The chairman and CEO of the PRSA, delivered the award to Gibbs, stating, “Robert Gibbs and his team revolutionized the way presidential candidates speak to voters by engaging best practices in current communications techniques and technologies,” adding: “He transformed static, one-way messaging into a dynamic dialogue to engage an expansive electorate like never before.” Upon accepting the award, Gibbs explained that his campaign had to “focus on the message of change being communicated by our candidate… we knew our success depended on our ability to stay focused on that message and relay it honestly and consistently to people across the country.”[75]

“You Have to Treat Them Like Children” – Franklin D. Roosevelt

Whether Bill Clinton, George Bush, Barack Obama or Mitt Romney, they are all parasites, whose purpose is to manipulate the public into granting them the “consent” to govern, while they govern for the benefit of corporations and banks to plunder, exploit, and profit at the expense of the population, both at home and around the world, which is often facilitated through war, coups, repression of liberation movements, genocide, and impoverishment. To these people, the public – you and I – are nothing but a “bewildered herd” of “ignorant and meddlesome outsiders” who must be kept as the “interested spectators of action.” The more talented a politician is at “manufacturing consent,” the more praise he or she gets from the media, and thus, from the public, itself. It is important to expose the spectacle of “public relations politics” so that we can look underneath the surface of power, and understand the real functions and structure of our society, and thus, we can be more capable of changing it. To take a quote from Bill Clinton out of context when he spoke at the Democratic National Convention, “It’s important, because a lot of people believe this stuff.” When he said this, he was referring to the views of Republicans, but the quote is revealing of Clinton’s arrogance and indeed, his talent as a manipulator of the public mind, because it applies precisely to a public relations event like the Democratic National Convention itself: “a lot of people believe this stuff.”

It seems that it is time that people now place their beliefs in more tangible, factual, and logical realities. As children, we were told fairy tales; as adults, we believe fairy tales. Just as Franklin D. Roosevelt said of Latin Americans back in the early 20th century, “You have to treat them like children.” Well that applies to their view of the domestic population as well. Even though our political parasites continue to treat us like children, we have the choice – and the capacity – to act like adults. That means that we have to begin by dismantling the fairy tales that we believe in. Parents know that there comes a time when they must tell their children that there is no Santa Claus, and while this reality may be difficult for the children at first to accept, they are able to deal with that reality, and intellectually evolve and mature beyond it. People as a whole have the same capacity. Whether or not we utilize that capacity is entirely up to us, because our politicians have no interest in doing so, nor will they. It is up to us to dismantle the mythology ourselves.

The most effective way to do this is to take a very practical and logical first step of applying the same standards to our own society that we apply to others. In other words, instead of pointing to the crimes of state-sanctioned “enemies,” instead of blaming either Republicans or Democrats for all the woes of society, one must engage in social self-reflectionand apply the exact same method of inquiry into the ideas, individuals and institutions of our “enemies” as we do to our own ideas, individuals, and institutions.

I think it’s relatively safe to assume that most people would not want a mass murderer as a close friend, but for some reason, millions of people cheer and applaud mass murderers as their leaders. This obviously has no basis in logic. If mass murder is wrong and immoral, those who commit it or participate in it are also immoral. When someone has clearly demonstrated their capacity for immorality – and their willingness to commit mass atrocities – as Clinton, Bush, and Obama all have, it does not make any logical sense to support these people on other claims of “morality” such as: gay rights, family values, abortion, etc. These are designed specifically as issues which limit the political discourse, which remove any discussion of empire, war, mass murder, genocide, corruption, impoverishment, the dismantling of rights and freedoms, torture, assassinations, coups, exploitation, environmental devastation, surveillance and the construction of a police state apparatus. These divisive issues, which in a functioning democracy would have been solved almost immediately, are designed to facilitate a back-and-forth between Republicans and Democrats, to distract the “bewildered herd” with only a few acceptable issues of discussion. Thus, anyone who raises other issues, of much greater relevance, ends up sounding like a Martian; they are perceived as suffering from some sort of “fringe” insanity. But insanity is not “fringe,” insanity is very much mainstream.

If, by chance, issues like war are raised in the political discourse – and most especially during advertising campaigns (which we commonly refer to as “election campaigns”) – then the critique of war policies are themselves confined to an “acceptable” discourse: either the war was a “success”, or it was a “tactical failure.” This implies, immediately, that the objectives of war are always inherently good, because if we wage war, it must be with good intentions. The morality of war – and the reality of empire – are not to be questioned.

When Obama was campaigning for president in 2008, he wrote an op-ed for the New York Times in which he referred to the Iraq war as a “distraction” for which he would make “tactical adjustments.” He wrote that the Iraq war was a “strategic blunder.”[76] That “strategic blunder” led to the deaths of over one million Iraqis between 2003 and 2008.[77] Yet, Obama was given praise for his “enlightened” critique of the Iraq war.

We must apply very basic standards of human decency to those who parade about as our leaders and saviors. An enormous amount of effort is put into preventing people from assessing political leadership in a logical, coherent, and rational manner. That is what the public relations industry does. Politicians are products to be marketed, bought and sold, and like most modern products, they fall apart quickly and have to be replaced. We have to begin questioning our political consumption patterns, otherwise we won’t change them, and it is glaringly obvious that what we have, simply isn’t working.

Watching Bill Clinton speak at the Democratic National Convention reminded me of why I don’t watch political speeches. The man stood up on stage for nearly an hour, and talked about how he cared about what poor families will do if the Republicans come to power, that Obama has fixed the economy, and he even felt it necessary to literally state, “Look, I love our country so much,” just in case you had any doubts. Clinton reached divine levels of absurdity and double-think when he stated:

If you want a future of shared prosperity, where the middle class is growing and poverty is declining, where the American dream is really alive and well again and where the United States maintains its leadership as a force for peace and justice and prosperity in this highly competitive world, you have to vote for Barack Obama.[78]

Considering that none of those fantasies exist under Republicans or Democrats, let alone Clinton or Obama, I will simply end with my favourite quote from Clinton during his speech: “a lot of people believe this stuff.” Let’s hope not for long.

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Notes

[1]            Ryan Lizza, “Clinton’s Speech: The Power of a Hug,” The New Yorker – News Desk, 6 September 2012:

http://www.newyorker.com/online/blogs/newsdesk/2012/09/bill-clinton-convention-speech-the-power-of-a-hug.html

[2]            Konrad Yakabuski, “Clinton gives a boost to Obama’s middle-class-hero image,” The Globe and Mail, 5 September, 2012:

http://www.theglobeandmail.com/news/world/us-election/clinton-gives-a-boost-to-obamas-middle-class-hero-image/article4522804/

[3]            David Giambusso, “Congressman Pascrell: Bill Clinton’s speech tonight is ‘his comeback’,” The Star-Ledger, 5 September 2012:

http://www.nj.com/news/index.ssf/2012/09/bill_clinton_hits_the_stump_fo.html

[4]            Dan Balz and Philip Rucker, “Bill Clinton offers forceful defense of Obama’s record,” The Washington Post, 5 September 2012:

http://www.washingtonpost.com/politics/bill-clinton-will-highlight-convention-tonight/2012/09/05/f6d5dcf2-f797-11e1-8398-0327ab83ab91_story.html

[5]            Mark Gollom, “Obama turns to ‘rock star’ Bill Clinton to boost support,” CBC News, 5 September 2012:

http://www.cbc.ca/news/politics/story/2012/09/05/democratic-convention-clinton-obama.html

[6]            Natalie Finn, “Bill Clinton at the Democratic National Convention: Celebs React to Teleprompter-Busting Speech,” E! News, 6 September 2012:

http://ca.eonline.com/news/343617/bill-clinton-at-the-democratic-national-convention-celebs-react-to-teleprompter-busting-speech

[7]            Rebecca Shapiro, “Bill Clinton Media Reactions: Pundits Praise Former President’s DNC Speech, Some Criticize Length,” Huffington Post, 6 September 2012:

http://www.huffingtonpost.com/2012/09/05/bill-clinton-media-reactions-dnc-speech_n_1859892.html

[8]            Rachel Maddow, “’The Rachel Maddow Show’ for Thursday, August 2nd, 2012,” NBC News, 2 August 2012:

http://www.msnbc.msn.com/id/48492324/ns/msnbc-rachel_maddow_show/t/rachel-maddow-show-thursday-august-nd/#.UDXF-ERQhgA

[9]            Josh Halliday, “Burson-Marsteller: PR firm at centre of Facebook row,” The Guardian, 12 May 2011:

http://www.guardian.co.uk/media/2011/may/12/burson-masteller-pr-firm-facebook-row

[10]            Edward Bernays, Propaganda (New York: Ig Publishing, 1928), page 37.

[11]            Andrew Gavin Marshall, “Power, Propaganda, and Purpose in American Democracy,” AndrewGavinMarshall.com, 18 January 2012:

http://andrewgavinmarshall.com/2012/01/18/power-propaganda-and-purpose-in-american-democracy/

[12]            Ibid.

[13]            Ibid.

[14]            Bruce Cummings, “Trilateralism and the New World Order,” World Policy Journal, Vol. 8, No. 2, Spring 1991, page 206.

[15]            Andrew Gavin Marshall, “Punishing the Population: The American Occupations of Haiti and the Dominican Republic,” AndrewGavinMarshall.com, 21 February 2012:

http://andrewgavinmarshall.com/2012/02/21/punishing-the-population-the-american-occupations-of-haiti-and-the-dominican-republic/

[16]            Ibid.

[17]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[18]            Morris Morley and Chris McGillion, “”Disobedient” Generals and the Politics of Redemocratization: The Clinton Administration and Haiti,” Political Science Quarterly, Vol. 112, No. 3, Autumn 1997; David Malone, “Haiti and the international community: A case study,” Survival, Vol. 39, Issue 2, 1997; Scott Turner, “The Dilemma of Double Standards in U.S. Human Rights Policy,” Peace & Change, Vol. 28, No. 4, October 2003.

[19]            Ibid.

[20]            Ibid.

[21]            Helene Cooper and Mark Landler, “U.S. Mulls Role in Haiti After the Crisis,” The New York Times, 17 January 2010:

http://www.nytimes.com/2010/01/18/world/americas/18policy.html

[22]            Andrew Gavin Marshall, “Economic Warfare and Strangling Sanctions: Punishing Iran for its “Defiance” of the United States,” AndrewGavinMarshall.com, 6 March 2012:

http://andrewgavinmarshall.com/2012/03/06/economic-warfare-and-strangling-sanctions-punishing-iran-for-its-defiance-of-the-united-states/

[23]            Najmeh Bozorgmehr, “Sanctions take toll on Iran’s sick,” The Financial Times, 4 September 2012:

http://www.ft.com/intl/cms/s/0/43abcb36-f5cc-11e1-a6bb-00144feabdc0.html#axzz25dqZrNTh

[24]            Andrew Gavin Marshall, “Economic Warfare and Strangling Sanctions: Punishing Iran for its “Defiance” of the United States,” AndrewGavinMarshall.com, 6 March 2012:

http://andrewgavinmarshall.com/2012/03/06/economic-warfare-and-strangling-sanctions-punishing-iran-for-its-defiance-of-the-united-states/

[25]            Molly Moorhead, “Bill Clinton’s night at the Democratic convention,” PolitiFact, 5 September 2012:

http://www.politifact.com/truth-o-meter/article/2012/sep/05/Bill-Clinton-Democratic-convention/

[26]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[27]            Andrew Gavin Marshall, “The Great Global Debt Depression: It’s All Greek To Me,” AndrewGavinMarshall.com, 15 July 2012:

http://andrewgavinmarshall.com/2011/07/15/167/

[28]            Ibid.

[29]            Ibid.

[30]            Reuters, “Justice Department will not prosecute Goldman Sachs, employees for Abacus deal,” Reuters, 9 August 2012:

http://www.reuters.com/article/2012/08/09/us-usa-goldman-no-charges-idUSBRE8781LA20120809

[31]            Andrew Clark, “Bankers and academics at top of donor list,” The Guardian, 8 November 2008:

http://www.guardian.co.uk/world/2008/nov/08/barackobama-wallstreet-bankers-campaign-donations-goldmansachs

[32]            Tracy Greenstein, “The Fed’s $16 Trillion Bailouts Under-reported,” Forbes, 20 September 2011:

http://www.forbes.com/sites/traceygreenstein/2011/09/20/the-feds-16-trillion-bailouts-under-reported/

[33]            James Vicini, “Supreme Court permits no limits on state campaign funds,” Reuters, 25 June 2012:

http://www.reuters.com/article/2012/06/25/us-usa-campaign-court-idUSBRE85O0P520120625

[34]            Jonathan D. Salant, “JPMorgan Employees Join Goldman Sachs Among Top Obama Donors,” Bloomberg, 21 March 2012:

http://www.bloomberg.com/news/2012-03-20/jpmorgan-employees-join-goldman-sachs-among-top-obama-donors.html

[35]            Greg Giroux and Jonathan D. Salant, “Obama Outspends Romney 2-1 With $43 Million in Funds for Ads,” Bloomberg, 21 July 2012:

http://www.bloomberg.com/news/2012-07-20/obama-raises-45-9-million-in-june-to-33-million-for-romney-1-.html

[36]            Peter Nicholas and Daniel Lippman, “Wall Street Is Still Giving to President,” The Wall Street Journal, 3 July 2012:

http://online.wsj.com/article/SB10001424052702303933404577500810740985338.html

[37]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[38]            Jackie Calmes, “Bad Banks, Big Bailouts and Bruises,” The New York Times, 24 July 2012:

http://www.nytimes.com/2012/07/25/books/bailout-by-neil-barofsky.html?pagewanted=all

[39]            Deborah Solomon, “Neil Barofsky, the Democrat Taking Digs at Obama,” Bloomberg, 12 July 2012:

http://www.businessweek.com/articles/2012-07-12/neil-barofsky-the-democrat-taking-digs-at-obama

[40]            AP, “Clinton, Obama threaten to withdraw from NAFTA,” CBC News, 27 February 2008: http://www.cbc.ca/world/usvotes/story/2008/02/27/debate-nafta.html

[41]            CTV, “Obama campaign mum on NAFTA contact with Canada,” CTV News, 29 February 2008:

http://www.ctvnews.ca/obama-campaign-mum-on-nafta-contact-with-canada-1.279448

[42]            Michael Luo, “Memo Gives Canada’s Account of Obama Campaign’s Meeting on Nafta,” The New York Times, 4 March 2008:

http://www.nytimes.com/2008/03/04/us/politics/04nafta.html

[43]            Laura Carlsen, “Obama Reaffirms Promise to Renegotiate NAFTA,” Huffington Post, 12 January 2012:

http://www.huffingtonpost.com/laura-carlsen/obama-reaffirms-promise-t_b_157316.html

[44]            Canwest News Service, “Obama not likely to renegotiate NAFTA, ex-diplomat says,” Canada.com, 13 November 2008:

http://www.canada.com/vancouversun/news/story.html?id=ae15ed12-326f-4187-8cd1-85ceef892b9a

[45]            Michael D. Shear, “NAFTA Renegotiation Must Wait, Obama Says,” The Washington Post, 20 February 2009:

http://www.washingtonpost.com/wp-dyn/content/story/2009/02/19/ST2009021903268.html

[46]            Donna Marykwas, “Secret Trans-Pacific Partnership trade negotiations creating ‘NAFTA on steroids’,” The Examiner, 24 August 2012:

http://www.examiner.com/article/secret-trans-pacific-partnership-trade-negotiations-creating-nafta-on-steroids

[47]            Lori Wallach, “Trans-Pacific Partnership: Under Cover of Darkness, a Corporate Coup Is Underway,” AlterNet, 29 June 2012:

http://www.alternet.org/story/156059/trans-pacific_partnership%3A_under_cover_of_darkness%2C_a_corporate_coup_is_underway?page=0%2C0

[48]            Zach Carter, “Obama Trade Document Leaked, Revealing New Corporate Powers And Broken Campaign Promises,” The Huffington Post, 13 June 2012:

http://www.huffingtonpost.com/2012/06/13/obama-trade-document-leak_n_1592593.html

[49]            Zach Carter, “Obama Trade Document Leaked, Revealing New Corporate Powers And Broken Campaign Promises,” The Huffington Post, 13 June 2012:

http://www.huffingtonpost.com/2012/06/13/obama-trade-document-leak_n_1592593.html

[50]            Josh Eidelson, “Trans-Pacific Partnership: Larger than NAFTA?,” Salon, 14 June 2012:

http://www.salon.com/2012/06/14/trans_pacific_partnership_larger_than_nafta/

[51]            Lori Wallach, “A Stealth Attack on Democratic Governance,” The American Prospect, 13 March 2012:

http://prospect.org/article/stealth-attack-democratic-governance

[52]            Doug Palmer, “Secrecy needed in trade talks: USTR Kirk,” NBC News, 13 May 2012:

http://www.msnbc.msn.com/id/47405479/ns/world_news-americas/t/secrecy-needed-trade-talks-ustr-kirk/#.UEldH0RQhgA

[53]            PC, “Unfair Trade Deals Becoming Even More Unpopular, U.S. Polling Shows,” Public Citizen: www.citizen.org/documents/polling-memo-july-2011.pdf

[54]            Ewen MacAskill and Dominic Rushe, “OECD says US economy is recovering but income inequality problematic,” The Guardian, 26 June 2012:

http://www.guardian.co.uk/business/2012/jun/26/oecd-us-economy-income-inequality

[55]            “Income inequality: Who exactly are the 1%?” The Economist, 21 January 2012:

http://www.economist.com/node/21543178

[56]            Aaron Task, “The ‘American Dream’ Is a Myth: Joseph Stiglitz on ‘The Price of Inequality’,” Yahoo! Finance, 8 June 2012:

http://finance.yahoo.com/blogs/daily-ticker/american-dream-myth-joseph-stiglitz-price-inequality-124338674.html

[57]            Gus Lubin, “23 Mind-Blowing Facts About Income Inequality In America,” Business Insider, 7 November 2011:

http://www.businessinsider.com/new-charts-about-inequality-2011-11#

[58]            Leigh Ann Caldwell, “Obama backtracks on comments that private sector is doing “fine”,” CBS News, 8 June 2012:

http://www.cbsnews.com/8301-503544_162-57449822-503544/obama-backtracks-on-comments-that-private-sector-is-doing-fine/?tag=contentMain;contentBody

[59]            AFP, “Fortune 500 smash profit record; Exxon back on top,” AFP, 7 May 2012:

http://www.google.com/hostednews/afp/article/ALeqM5gbj6XIng0Cu2YL2nn9uBvWN74EgA?docId=CNG.3b6426af1a176d2c5108891890072a79.101

[60]            Christina Rexrode and Bernard Condon, “Record profits for big companies spur 6% rise in CEO pay,” Seattle Times, 25 May 2012:

http://seattletimes.com/html/businesstechnology/2018290135_usceopay26.html

[61]            Ylan Q. Mui, “Americans saw wealth plummet 40 percent from 2007 to 2010, Federal Reserve says,” The Washington Post, 11 June 2012:

http://www.washingtonpost.com/business/economy/fed-americans-wealth-dropped-40-percent/2012/06/11/gJQAlIsCVV_story.html

[62]            Timothy Williams, “As Public Sector Sheds Jobs, Blacks Are Hit Hardest,” The New York Times, 28 November 2011:

http://www.nytimes.com/2011/11/29/us/as-public-sector-sheds-jobs-black-americans-are-hit-hard.html

[63]            Zachary Karabell, “The White House and Jeff Immelt on Jobs: Compelling, Infuriating or Simply Irrelevant?” Time Magazine, 15 June 2012:

http://moneyland.time.com/2011/06/15/the-white-house-jeff-immelt-and-jobs-compelling-infuriating-or-simply-irrelevant/

[64]            Zachary Roth, “With jobs czar under fire, new data confirm offshoring trend,” Yahoo! News, 19 April 2011:

http://news.yahoo.com/blogs/lookout/jobs-czar-under-fire-data-confirm-offshoring-trend-155235152.html

[65]            Susanna Kim, “10 Largest Companies on Obama’s Jobs Council Lost 91K Jobs,” ABC News, 12 October 2011:

http://abcnews.go.com/Business/10-largest-companies-obamas-jobs-council-lost-91000/story?id=14714319#.UEmh3kRQhgA

[66]            David Kocieniewski, “G.E.’s Strategies Let It Avoid Taxes Altogether,” The New York Times, 24 March 2011:

http://www.nytimes.com/2011/03/25/business/economy/25tax.html?pagewanted=all

[67]            Stan Greenberg, James Carville, and Erica Seifert, “Shifting the Economic Narrative,” Democracy Corps/Greenberg Quinlan Rosner Research, 11 June 2012:

www.democracycorps.com

[68]            Ibid.

[69]            Ibid.

[69]            Ibid.

[70]            Ibid.

[71]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

[72]            Matthew Creamer, “Obama Wins! … Ad Age’s Marketer of the Year,” AdAge, 17 October 2008:

http://adage.com/article/moy-2008/obama-wins-ad-age-s-marketer-year/131810/

[73]            Mark Sweney, “Barack Obama campaign claims two top prizes at Cannes Lion ad awards,” The Guardian, 29 June 2009:

http://www.guardian.co.uk/media/2009/jun/29/barack-obama-cannes-lions

[74]            Theresa Howard, “Obama Campaign Takes Top Ad Prizes,” ABC News, June 2009:

http://abcnews.go.com/Business/Politics/story?id=7947528&page=1#.UEk6zURQhgA

[75]            PRSA, “White House Press Secretary Robert Gibbs Receives Public Relations Professional of the Year Honors From PRSA,” Reuters Press Release, 5 June 2009:

http://pilot.us.reuters.com/article/2009/06/05/idUS121576+05-Jun-2009+BW20090605

[76]            Barack Obama, “My Plan for Iraq,” The New York Times, 14 July 2008:

http://www.nytimes.com/2008/07/14/opinion/14obama.html

[77]            “Iraq conflict has killed a million Iraqis: survey,” Reuters, 30 January 2008:

http://www.reuters.com/article/2008/01/30/us-iraq-deaths-survey-idUSL3048857920080130

[78]            NYT, “Transcript of Bill Clinton’s Speech to the Democratic National Convention,” The New York Times, 5 September 2012:

http://www.nytimes.com/2012/09/05/us/politics/transcript-of-bill-clintons-speech-to-the-democratic-national-convention.html?pagewanted=all

Welcome to the World Revolution in the Global Age of Rage

Welcome to the World Revolution in the Global Age of Rage

By: Andrew Gavin Marshall

Mass protest in Spain

 

I am currently writing a book on the global economic crisis and the global resistance, rebellious and revolutionary movements that have emerged in reaction to this crisis. Our world is in the midst of the greatest economic, social, and political crisis that humanity has ever collectively entered into. The scope is truly global in its context, and the effects are felt in every locality. The course of the global economic crisis is the direct and deliberate result of class warfare, waged by the political and economic elites against the people of the world. The objective is simple: all for them and none for you. At the moment, the crisis is particularly acute in Europe, as the European elites impose a coordinated strategy of class warfare against the people through “austerity” and “structural adjustment,” political euphemisms used to hide their true intention: poverty and exploitation.

The people of the world, however, are beginning to rise up, riot, resist, rebel and revolt. This brief article is an introduction to the protest movements and rebellions which have taken place around the world in the past few years against the entrenched systems and structures of power. This is but a small preview of the story that will be examined in my upcoming book. Please consider donating to The People’s Book Project in order to finance the completion of this volume.

Those who govern and rule over our world and its people have been aware of the structural and social changes which would result in bringing about social unrest and rebellion. In fact, they have been warning about the potential for such a circumstance of global revolutionary movements for a number of years. The elite are very worried, most especially at the prospect of revolutionary movements spreading beyond borders and the traditional confines of state structures. Zbigniew Brzezinski, Jimmy Carter’s former National Security Adviser, co-founder with banker David Rockefeller of the Trilateral Commission, and an arch-elitist strategic thinker for the American empire, has been warning of what he terms the ‘Global Political Awakening’ as the central challenge for elites in a changing world.

In June of 2010, I published an article entitled, “The Global Political Awakening and the New World Order,” in which I examined this changing reality and in particular, the words of Zbigniew Brzezinski in identifying it. In December of 2008, Brzezinski published an article for the New York Times in which he wrote: “For the first time in history almost all of humanity is politically activated, politically conscious and politically interactive. Global activism is generating a surge in the quest for cultural respect and economic opportunity in a world scarred by memories of colonial or imperial domination.” This situation is made more precarious for elites as it takes place in a global transition in which the Atlantic powers – Western Europe and the United States – are experiencing a decline in their 500-year domination of the world. Brzezinski wrote that what is necessary to maintain control in this changing world is for the United States to spearhead “a collective effort for a more inclusive system of global management,” or in other words, more power for them. Brzezinski has suggested that, “the worldwide yearning for human dignity is the central challenge inherent in the phenomenon of global political awakening.” In 2005, Brzezinski wrote:

It is no overstatement to assert that now in the 21st century the population of much of the developing world is politically stirring and in many places seething with unrest. It is a population acutely conscious of social injustice to an unprecedented degree, and often resentful of its perceived lack of political dignity. The nearly universal access to radio, television and increasingly the Internet is creating a community of shared perceptions and envy that can be galvanized and channeled by demagogic political or religious passions. These energies transcend sovereign borders and pose a challenge both to existing states as well as to the existing global hierarchy, on top of which America still perches…

The youth of the Third World are particularly restless and resentful. The demographic revolution they embody is thus a political time-bomb, as well. With the exception of Europe, Japan and America, the rapidly expanding demographic bulge in the 25-year-old-and-under age bracket is creating a huge mass of impatient young people. Their minds have been stirred by sounds and images that emanate from afar and which intensify their disaffection with what is at hand. Their potential revolutionary spearhead is likely to emerge from among the scores of millions of students concentrated in the often intellectually dubious “tertiary level” educational institutions of developing countries… Typically originating from the socially insecure lower middle class and inflamed by a sense of social outrage, these millions of students are revolutionaries-in-waiting, already semi-mobilized in large congregations, connected by the Internet and pre-positioned for a replay on a larger scale of what transpired years earlier in Mexico City or in Tiananmen Square. Their physical energy and emotional frustration is just waiting to be triggered by a cause, or a faith, or a hatred.

Important to note is that Brzezinski has not simply been writing abstractly about this concept, but has been for years traveling to and speaking at various conferences and think tanks of national and international elites, who together form policy for the powerful nations of the world. Speaking to the elite American think tank, the Carnegie Council, Brzezinski warned of “the unprecedented global challenge arising out of the unique phenomenon of a truly massive global political awakening of mankind,” as we now live “in an age in which mankind writ large is becoming politically conscious and politically activated to an unprecedented degree, and it is this condition which is producing a great deal of international turmoil.” Brzezinski noted that much of the ‘awakening’ was being spurred on by America’s role in the world, and the reality of globalization (which America projects across the globe as the single global hegemon), and that this awakening “is beginning to create something altogether new: namely, some new ideological or doctrinal challenge which might fill the void created by the disappearance of communism.” He wrote that he sees “the beginnings, in writings and stirrings, of the making of a doctrine which combines anti-Americanism with anti-globalization, and the two could become a powerful force in a world that is very unequal and turbulent.

 

 

In 2007, the British Ministry of Defence issued a report looking at global trends over the following three decades to better plan for the “future strategic context” of the British military. The report noted that: “The middle classes could become a revolutionary class, taking the role envisaged for the proletariat by Marx… The world’s middle classes might unite, using access to knowledge, resources and skills to shape transnational processes in their own class interest.” In my April 2010 article, “The Global Economic Crisis: Riots, Rebellion, and Revolution,” I quoted the official British Defence Ministry report, which read:

Absolute poverty and comparative disadvantage will fuel perceptions of injustice among those whose expectations are not met, increasing tension and instability, both within and between societies and resulting in expressions of violence such as disorder, criminality, terrorism and insurgency. They may also lead to the resurgence of not only anti-capitalist ideologies, possibly linked to religious, anarchist or nihilist movements, but also to populism and the revival of Marxism.

In December of 2008, the managing director of the IMF, Dominique Strauss-Kahn warned that the economic crisis could lead to “violent unrest on the streets.” He stated that if the elite were not able to instill an economic recovery by 2010, “then social unrest may happen in many countries – including advanced economies,” meaning the Western and industrialized world. In February of 2009, the head of the World Trade Organization (WTO), Pascal Lamy, warned that the economic crisis “could trigger political unrest equal to that seen during the 1930s.” In May of 2009, the president of the World Bank, Robert Zoellick, stated that if the economic crisis did not come to an end, “there is a risk of a serious human and social crisis with very serious political implications.”

In early 2009, the top intelligence official in the United States, Dennis Blair, the Director of National Intelligence (who oversees all 16 U.S. intelligence agencies), stated that the global economic crisis had become the primary threat to America’s “security” (meaning domination). He told the Senate Intelligence Committee: “I’d like to begin with the global economic crisis, because it already looms as the most serious one in decades, if not centuries… Economic crises increase the risk of regime-threatening instability if they are prolonged for a one-or-two-year period… And instability can loosen the fragile hold that many developing countries have on law and order, which can spill out in dangerous ways into the international community.” He also noted that, “there could be a backlash against U.S. efforts to promote free markets because the crisis was triggered by the United States… We are generally held responsible for it.”

In December of 2008, police in Greece shot and killed a 15-year old student in Exarchia, a libertarian and anarchist stronghold in Athens. The murder resulted in thousands of protesters and riots erupting in the streets, in what the New York Times declared to be “the worst unrest in decades.” Triggered by the death of the young Greek student, the protests were the result of deeper, social and systemic issues, increasing poverty, economic stagnation and political corruption. Solidarity protests took place all over Europe, including Germany, France, and the U.K. But this was only a sample of what was to come over the following years.

In the early months of 2009, as the economic crisis was particularly blunt in the countries of Eastern Europe, with increased unemployment and inflation, the region was headed for a “spring of discontent,” as protests and riots took place in Lithuania, Bulgaria, and Latvia. In January of 2009, more than 10,000 people took to the streets in Latvia in one of the largest demonstrations since the end of Soviet rule. A demonstration of roughly 7,000 Lithuanians turned into a riot, and smaller clashes between police and protesters took place in Bulgaria, the Czech Republic and Hungary, while police in Iceland tear gassed a demonstration of roughly 2,000 people outside the parliament, leading to the resignation of the prime minister. The head of the IMF said that the economic crisis could cause more turmoil “almost everywhere,” adding: “The situation is really, really serious.” A mass strike took place in France, bringing hundreds of thousands of workers into the streets and pushing anti-capitalist activists and leaders to the front of a growing social movement.

May 1, 2009 – the labour activist day known as ‘May Day’ – saw protests and riots erupting across Europe, including Germany, Greece, Austria, Turkey and France. In Germany, banks were attacked by protesters, leading to many arrests; there were over 150,000 demonstrators in Ankara, Turkey; more than 10,000 people took to the streets in Madrid, Spain; thousands took to the streets in Italy and Russia and social unrest continued to spread through Eastern Europe. Results from a poll were released on early May 2009 reporting that in the United States, Italy, France, Spain, Britain and Germany, a majority of the populations felt that the economic crisis would lead to a rise in “political extremism.”

In April of 2009, the G20 met in London, and was met there with large protests, drawing tens of thousands of people into the streets. In London’s financial district, protesters smashed the windows of the Royal Bank of Scotland, which was the recipient of a massive government bailout during the early phases of the financial crisis. One man, Ian Tomlinson, dropped dead on the streets of London following an assault by a British police officer, who was later questioned under suspicion of manslaughter.

In November of 2011, a month of student protests and sit-ins erupted in Germany, Austria, and Switzerland, triggered by budget cuts and tuition fees. The protests began in Austria, where students occupied the University of Vienna for over a month, quickly spreading to other cities and schools in Germany, where roughly 80,000 students took part in nationwide protests, with sit-ins taking place in 20 universities across the country, and the University of Basel in Switzerland was also occupied by students.

The small little island-country of Iceland has undergone what has been referred to as the “Kitchenware Revolution,” where the country had once been rated by the UN as the best country to live in as recently as 2007, and in late 2008, its banks collapsed and the government resigned amid the mass protests that took place. The banks were nationalized, Iceland got a new prime minister, a gay woman who brought into her cabinet a majority of women, fired bank CEOs; the constitution was re-written with significant citizen participation and the government took steps to write off debts and refused to bailout foreign investors. Now, the economy is doing much better, hence why no one is talking about Iceland in the media (woeful is power to the ‘tyranny’ of a good example). Iceland has even hired an ex-cop bounty hunter to track down and arrest the bankers that destroyed the country’s economy. As the debt burdens of a significant portion of the population of Iceland were eased, Iceland was projected in 2012 to have a faster growing economy than those in the euro area and the developed world. As reported by Bloomberg, the main difference between how Iceland has dealt with its massive economic crisis and how the rest of the ‘developed’ world has been dealing with it, is that Iceland “has put the needs of its population ahead of the markets at every turn.” Instead of rewarding bankers for causing the crisis, as we have done in Europe and North America, Icelanders have arrested them, and protected homeowners instead of evicting them.

As Greece came to dominate the news in early 2010, with talk of a bailout, protests began to erupt with more frequency in the small euro-zone country. In early May, a general strike was called in Greece against the austerity measures the government was imposing in order to get a bailout. Banks were set on fire, petrol bombs were thrown at riot police, who were pepper spraying, tear gassing, and beating protesters with batons, and three people died of suffocation in one of the bombed banks.

In May of 2010, British historian Simon Schama wrote an article for the Financial Times entitled, “The world teeters on the brink of a new age of rage,” in which he explained that historians “will tell you that there is often a time-lag between the onset of economic disaster and the accumulation of social fury.” In act one, he wrote, “the shock of a crisis initially triggers fearful disorientation” and a “rush for political saviours.” Act two witnesses “a dangerously alienated public” who “take stock of the brutal interruption of their rising expectations,” which leads to the grievance that someone “must have engineered the common misfortune,” which, I might add, is true (though Schama does not say so). To manage this situation, elites must engage in “damage-control” whereby perpetrators are brought to justice. Schama noted that, “the psychological impact of financial regulation is almost as critical as its institutional prophylactics,” or, in other words: the propaganda effect of so-called “financial regulation” on calming the angry plebs is as important (if not more so) as the financial regulations themselves. Thus, those who lobby against financial regulation, warned Scharma, “risk jeopardizing their own long-term interests.” If governments fail to “reassert the integrity of public stewardship,” then the public will come to perceive that “the perps and the new regime are cut from common cloth.” In the very least, wrote Scharma, elites attempting to implement austerity measures and other unpopular budget programs will need to “deliver a convincing story about the sharing of burdens,” for if they do not, it would “guarantee that a bad situation gets very ugly, very fast.”

As French President Nicolas Sarkozy began implementing austerity measures in France, particularly what is called “pension reform,” unions and supporters staged massive strikes in September of 2010, drawing up to three million people into the streets in over 230 demonstrations across the country. Soldiers armed with machine guns went on patrol at certain metro stations as government officials used the puffed up and conveniently-timed threat of a “terrorist attack” as being “high risk.” More strikes took place in October, with French students joining in the demonstrations, as students at roughly 400 high schools across the country built barricades of wheelie bins to prevent other students from attending classes, with reports of nearly 70% of French people supporting the strike. The reports of participants varied from the government figures of over 800,000 people to the union figures of 2-3 million people going out into the streets. The Wall Street Journal referred to the strikes as “an irrational answer” to Sarkozy’s “perfectly rational initiative” of reforms.

In November of 2010, Irish students in Dublin began protesting against university tuition increases, when peaceful sit-ins were met with violent riot police, and roughly 25,000 students took to the streets. This was the largest student protest in Ireland in a generation.

In Britain, where a new coalition government came to power – uniting the Conservatives (led by David Cameron, the Prime Minister) and the Liberal Democrats (led by Nick Clegg, Deputy PM) – tuition increases were announced, tripling the cost from 3 to 9,000 pounds. On November 10, as roughly 50,000 students took to the streets in London, the Conservative Party headquarters in central London had its windows smashed by students, who then entered the building and occupied it, even congregating up on the rooftop of the building. The police continued to ‘kettle’ protesters in the area, not allowing them to enter or leave a confined space, which of course results in violent reactions. Prime Minister David Cameron called the protest “unacceptable.” The Christian Science Monitor asked if British students were the “harbinger of future violence over austerity measures,” There were subsequent warnings that Britain was headed for a winter of unrest.

Tens of thousands again took to the streets in London in late November, including teenage students walking with university students, again erupting in riots, with the media putting in a great deal of focus on the role of young girls taking part in the protests and riots. The protests had taken place in several cities across the United Kingdom, largely peaceful save the ‘riot’ in London, and with students even occupying various schools, including Oxford. The student protests brought ‘class’ back into the political discourse. In November, several universities were occupied by students, including the School of Oriental and African Studies, UWE Bristol and Manchester Metropolitan. Several of the school occupations went for days or even weeks. Universities were then threatening to evict the students. The school occupations were the representation of a new potential grass-roots social movement building in the UK. Some commentators portrayed it as a “defining political moment for a generation.”

 

 

In early December of 2010, as the British Parliament voted in favour of the tripling of tuition, thousands of students protested outside, leading to violent confrontations with police, who stormed into crowds of students on horseback, firing tear gas, beating the youth with batons, as per usual. While the overtly aggressive tactics of police to ‘kettle’ protesters always creates violent reactions, David Cameron was able to thereafter portray the student reactions to police tactics as a “feral mob.” One student was twice pulled out from his wheelchair by police, and another student who was struck on the head with a baton was left with a brain injury. As the protests erupted into riots against the police into the night, one infamous incident included a moment where Prince Charles and his wife Camilla were attacked by rioters as their car drove through the crowd in what was called the “worst royal security breach in a generation,” as the royal couple were confronted directly by the angry plebs who attacked the Rolls-Royce and Camilla was even ‘prodded’ by a stick, as some protesters yelled, “off with their heads!” while others chanted, “Whose streets? Our streets!” As more student protests were set to take place in January of 2011, Scotland Yard’s counter-terrorism command contacted university officials requesting “intelligence” as students increased their protest activities, as more occupations were expected to take place.

In December of 2010, a Spanish air traffic controller strike took place, grounding flights for 330,000 people and resulting in the government declaring a state of emergency, threatening the strikers with imprisonment if they did not return to work.

Part way through December, an uprising began in the North African country of Tunisia, and by January of 2011, the 23-year long dictatorship of a French and American-supported puppet, Ben Ali, had come to an end. This marked the first major spark of what has come to be known as the Arab Spring. Protests were simultaneously erupting in Algeria, Jordan, Egypt, Yemen, and elsewhere. In late January of 2011, I wrote an article entitled, “Are we witnessing the start of a global revolution?,” noting that the protests in North Africa were beginning to boil up in Egypt most especially. Egypt entered its modern revolutionary period, resulting in ending the rule of the long-time dictator, Hosni Mubarak, and though the military has been attempting to stem the struggle of the people, the revolutionary struggle continues to this day, and yet the Obama administration continues to give $1.3 billion in military aid to support the violent repression of the democratic uprising. The small Arab Gulf island of Bahrain (which is home to the U.S. Fifth Fleet) also experienced a large democratic uprising, which has been consistently and brutally crushed by the local monarchy and Saudi Arabia, with U.S. support, including the selling of arms to the dictatorship.

 

 

In early 2011, the British student protests joined forces with a wider anti-austerity social protest against the government. As protests continued over the following months all across the country, banks became a common target, noting the government’s efforts to spend taxpayer money to bailout corrupt banks and cut health, social services, welfare, pensions, and increase tuition. Several bank branches were occupied and others had protests – often very creatively imagined – organized outside closed bank branches. On March 26, roughly 500,000 protesters took to the streets of London against austerity measures. As late as July 2011, a student occupation of a school continued at Leeds.

Throughout 2011, protests in Greece picked up in size and rage. In February, roughly 100,000 people took to the streets in Athens against the government’s austerity measures, leading to clashes with riot police that lasted for three hours, with police using tear gas and flash bombs and some protesters reacting with rocks and petrol bombs. In June of 2011, Greece experienced major clashes between protesters and police, or what are often called “riots.” During a general strike in late June, police went to war against protesters assembled in central Athens. Protests continued throughout the summer and into the fall, and in November, roughly 50,000 Greeks took to the streets in Athens.

 

 

In March of 2011, as Portugal plunged forward into its own major crisis and closer to a European Union bailout, roughly 300,000 Portuguese took to the streets of Lisbon and other cities protesting against the government’s austerity measures. Driven by the youth, calling themselves Portugal’s “desperate generation,” in part inspired by the youth uprisings in North Africa, the Financial Times referred to it as “an unexpected protest movement that has tapped into some of Portugal’s deepest social grievances.”

The Portuguese protests in turn inspired the Spanish “Indignados” or 15-M movement (named after the 15th of May, when the protests began), as youth – the indignant ones – or the “lost generation,” occupied Madrid’s famous Puerta del Sol on May 15, 2011, protesting against high unemployment, the political establishment, and the government’s handling of the economic crisis. The authorities responded in the usual way: they attempted to ban the protests and then sent in riot police. Thousands of Spaniards – primarily youth – occupied the central square, setting up tents and building a small community engaging in debate, discussion and activism. In a massive protest in June of 2011, over 250,000 Spaniards took the streets in one of the largest protests in recent Spanish history. Over the summer, as the encampment was torn down, the Indignados refined their tactics, and began to engage in direct action by assembling outside homes and preventing evictions from taking place, having stopped over 200 evictions since May of 2011, creating organic vegetable gardens in empty spaces, supporting immigrant workers in poor communities, and creating “a new social climate.”

The Indignados spurred solidarity and similar protests across Europe, including Greece, Belgium, France, Germany, the U.K., and beyond. In fact, the protests even spread to Israel, where in July of 2011, thousands of young Israelis established tent cities in protest against the rising cost of living and decreasing social spending, establishing itself on Rothschild Boulevard, a wealthy avenue in Tel Aviv named after the exceedingly wealthy banking dynasty. The protest, organized through social media, quickly spread through other cities across Israel. In late July, over 150,000 Israelis took to the streets in 12 cities across the country in the largest demonstration the country had seen in decades, demonstrating against the “rising house prices and rents, low salaries, [and] the high cost of raising children and other social issues.” In early August, another protest drew 320,000 people into the streets, leading some commentators to state that the movement marked “a revolution from a generation we thought was unable to make a revolution.” In early September, roughly 430,000 Israelis took to the streets in the largest demonstration in Israeli history.

In May and June of 2011, a student movement began to erupt in Chile, fighting against the increased privatization of their school system and the debt-load that comes with it. The state – the remnants of the Pinochet dictatorship – responded in the usual fashion: state violence, mass arrests, attempting to make protesting illegal. In clashes between students and riot police that took place in August, students managed to occupy a television station demanding a live broadcast to express their demands, with the city of Santiago being converted into “a state of siege” against the students. The “Chilean Winter” – as it came to be known – expanded into a wider social movement, including labour and environmental and indigenous groups, and continues to this very day.

 

 

The Indignados further inspired the emergence of the Occupy Movement, which began with occupy Wall Street in New York City on 17 September of 2011, bringing the dialectic of the “99% versus the 1%” into the popular and political culture. The Occupy movement, which reflected the initial tactics of the Indignados in setting up tents to occupy public spaces, quickly spread across the United States, Canada, Europe, and far beyond. There were Occupy protests that took place as far away as South Africa, in dozens of cities across Canada, in countries and cities all across Latin America, in Israel, South Korea, Japan, Australia, New Zealand, and in hundreds of cities across the United States.

On October 15, 2011, a day of global protests took place, inspired by the Arab Spring, the Indignados, and the Occupy movement, when over 950 cities in 82 countries around the world experienced a global day of action originally planned for by the Spanish Indignados as a European-wide day of protest. In Italy, over 400,000 took to the streets; in Spain there were over 350,000, roughly 50,000 in New York City, with over 100,000 in both Portugal and Chile.

 

 

The Occupy movement was subsequently met with violent police repression and evictions from the encampments. The U.S. Department of Homeland Security (DHS) was busy spying on various Occupy groups around the country, and reportedly was involved in coordinating the crack-downs and evictions against dozens of Occupy encampments, as was later confirmed by declassified documents showing White House involvement in the repression. The FBI has also undertaken a “war of entrapment” against Occupy groups, attempting to discredit the movement and frame its participants as potential terrorists. Following the example of tactical change in the Indignados, the Occupy groups began refurbishing foreclosed homes for the homeless, helping families reclaim their homes, disrupting home foreclosure auctions, and even take on local community issues, such as issues of racism through the group, Occupy the Hood.

In late November of 2011, a public sector workers’ strike took place in the U.K., with tens of thousands of people marching in the streets across the country, as roughly two-thirds of schools shut and thousands of hospital operations postponed, while unions estimated that up to two million people went on strike. The host of a popular British television show, Jeremy Clarkson, said in a live interview that the striking workers should be taken out and shot in front of their families.

In January of 2012, protests erupted in Romania against the government’s austerity measures, leading to violent clashes with police, exchanging tear gas and firebombs. As the month continued, the protests grew larger, demanding the ouster of the government. The Economist referred to it as Romania’s “Winter of Discontent.” In early February, the Romanian Prime Minister resigned in the face of the protests.

In February of 2012, a student strike began in the French-speaking Canadian province of Quebec against the provincial government’s plan to nearly double the cost of tuition, bringing hundreds of thousands of students into the streets, who were in turn met with consistent state repression and violence, in what became known as the ‘Maple Spring.’ Dealing with issues of debt, repression, and media propaganda, the Maple Spring presented an example for student organizing elsewhere in Canada and North America. The government of Quebec opposes organized students but works with organized crime – representing what can be called a ‘Mafiocracy’ – and even passed a law attempting to criminalize student demonstrations. The student movement received support and solidarity from around the world, including the Chilean student movement and even a group of nearly 150 Greek academics who proclaimed their support in the struggle against austerity for the “largest student strike in the history of North America.”

 

 

In the spring of 2012, Mexican students mobilized behind the Yo Soy 132 movement – or the “Mexican Spring” – struggling against media propaganda and the political establishment in the lead-up to national elections, and tens of thousands continued to march through the streets decrying the presidential elections as rigged and fraudulent. The Economist noted that Mexican students were beginning to “revolt.”

In May of 2012, both the Indignados and the Occupy Movement undertook a resurgence of their street activism, while the occupy protests in Seattle and Oakland resulting in violent clashes and police repression. The protests drew Occupy and labour groups closer together, and police also repressed a resurgent Occupy protest in London.

In one of the most interesting developments in recent months, we have witnessed the Spanish miners strike in the province of Asturias, having roughly 8,000 miners strike against planned austerity measures, resorting to constructing barricades and directly fighting riot police who arrived in their towns to crush the resistance of the workers. The miners have even been employing unique tactics, such as constructing make-shift missiles which they fire at the advancing forces of police repression. For all the tear gas, rubber bullets and batons being used by police to crush the strike, the miners remain resolved to continue their struggle against the state. Interestingly, it was in the very region of Asturias where miners rebelled against the right-wing Spanish government in 1934 in one of the major sparks of the Spanish Civil War which pitted socialists and anarchists against Franco and the fascists. After weeks of clashes with police in mining towns, the striking workers planned a march to Madrid to raise attention to the growing struggle. The miners arrived in Madrid in early July to cheering crowds, but were soon met with repressive police, resulting in clashes between the people and the servants of the state. As the Spanish government continued with deeper austerity measures, over one million people marched in the streets of over 80 cities across Spain, with violent clashes resulting between protesters and police in Madrid.

 

 

This brief look at the resistance, rebellious and revolutionary movements emerging and erupting around the world is by no means an exhaustive list, nor is it meant to be. It is merely a brief glimpse at the movements with which I intend to delve into detail in researching and writing about in my upcoming book, and to raise the question once again: Are we witnessing the start of a global revolution?

I would argue that, yes, indeed, we are. How long it takes, how it manifests and evolves, its failures and successes, the setbacks and leaps forward, and all the other details will be for posterity to acknowledge and examine. What is clear at present, however, is that no matter how much the media, governments and other institutions of power attempt to ignore, repress, divide and even destroy revolutionary social movements, they are increasingly evolving and emerging, in often surprising ways and with different triggering events and issues. There is, however, a commonality: where there is austerity in the world, where there is repression, where there is state, financial and corporate power taking all for themselves and leaving nothing for the rest, the rest are now rising up.

Welcome to the World Revolution.

 

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.

Please donate to The People’s Book Project to help this book come to completion.

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