Tunisia’s Unfinished Revolution: From Dictatorship to Democracy?

Tunisia’s Unfinished Revolution: From Dictatorship to Democracy?

By: Andrew Gavin Marshall

From the Guardian, 10 February 2013

From the Guardian, 10 February 2013

On January 14, 2011, Tunisia’s 23-year long dictator Ben Ali fled the country he ruled over in the face of a popular uprising which began the previous month. Tunisia represented the spark of what became known as the ‘Arab Spring.’ Over two years later, Tunisians are back in the streets protesting against the new government, elected in October of 2011, now on the verge of collapse as ministers resign, protests increase, clashes erupt, violence flares, and the future remains unknown.

So the question lingers: what went wrong? What happened? Why are Tunisians back in the streets? Is this Tunisia’s “unfinished revolution”?

The Spark

Tunisia had been ruled by President Zine El Abidine Ben Ali from 1987 until the revolution in 2011, a regime marred by corruption, despotism, and repression. While the revolution itself is generally traced to the self immolation of Mohamed Bouazizi, a 26-year old street vendor in the city of Sidi Bouzid, on December 17, 2010, leading to protests and clashes which spread across the country, there was a longer timeline – and other profound changes – which led to the actual revolutionary potential.

Tunisia’s revolution was largely driven by economic reasons, though political and social issues should not be underestimated. Tunisia has a recent history of labour unrest in the country, with the General Union of Tunisian Workers – UGTT – having led protests which were violently repressed in 1978, bread riots in 1984, and more labour unrest in the mining region of Gafsa in 2008. There were also a number of political clashes from the 1990s onward, between the state and the Islamic movement an-Nahda (Ennahda). After the UGTT was repressed in 1978, it was permitted to exist in co-operation with the state, following along the lines of labour and union history within the West itself. While the state felt it had a firm control of Tunisian society, there were growing divides with the youth, who for years would lead their own protests against the state through human rights organizations, the General Union of Tunisian Students (UGET), or other associations.[1]

Within Tunisia, a crisis had emerged among young graduates in higher education from the mid-1990s onward, with a serious lack of employment opportunities for an increasingly educated youth. From this period up until the revolution, most protests in Tunisia were organized by youth in university organizations and student unions, using tactics such as sit-ins, chaining themselves to buildings, or hunger strikes, which were often met with state violence. Suicide had become another tactic of protest, “a political manifesto to highlight a political demand and to underline the social fragility it implies,” in the words of Mehdi Mabrouk from the University of Tunis. This was understood as the “emergence of a culture of suicide,” identified in a study by the United Nations Development Programme (UNDP) as “a culture which disdained the value of life, finding death an easier alternative because of a lack of values and a sense of anomie,” which was “particularly true of unemployed and marginal youth, so that death was more attractive than life under such conditions.”[2] It was within this context that Mohamed Bouazizi’s suicide became the spark for the wider protests, first in Sidi Bouzid, and quickly spreading across the country, with youth leading the way.

With the help of social media, like Facebook and Twitter, the youth activists in Sidi Bouzid were able to share their revolt with the rest of the country and the world, encouraging the spread of the uprising across Tunisia and the Arab world at large. A relative of Bouazizi described the protesters as having “a rock in one hand, a cell phone in the other.” Thus, while Tunisian media ignored the protests in Sidi Bouzid, international media and social media became increasingly involved. Tunisia had 3.6 million internet users, roughly a third of the population, who had access to live news about what was taking place within their country, even though the official national news media did not mention the events until 29 December 2010, twelve days after the protests had begun. The government began to arrest bloggers and web activists in the hopes that the protests would fade or diminish in fear, yet it only motivated the protests further. From the first day, the Sidi Bouzid branch of the General Union of Tunisian Workers (UGTT) was engaged in the protests, while the national leadership of the UGTT was considered to be too close to the regime and national ruling class to act independently. However, the regional branches of the UGTT had “a reputation for gutsy engagement,” wrote Yasmine Ryan in Al-Jazeera. The Sidi Bouzid branch of UGTT was one of the main organizing forces behind the protests, and when protesters were killed in neighbouring regions, it erupted nation-wide. Thus, students, teachers, lawyers, and the unemployed joined together in protest first in Sidi Bouzid, and then across the country.[3]

Dictatorship or Democracy?

Tunisia happened to be a “model US client” in the words of Richard Falk: “a blend of neoliberalism that is open to foreign investment, cooperation with American anti-terrorism by way of extreme rendition of suspects, and strict secularism that translates into the repression of political expression.”[4]

Just in line with the closest of American and Western allies – and ‘clients’ – in the region, the strategy for the West is one of unyielding support for the dictatorship, so long as “stability” and “prosperity” and ensured. The term “security” is a euphemism for control of the population, while “prosperity” is a euphemism for economic exploitation and profit for the rich few, domestically and globally.

American attitudes toward Tunisia were often reflected in diplomatic cables released by Wikileaks, in which as early as 2006 the U.S. Embassy in Tunis reported that the issue of succession from Ben Ali was important, but concluded that, “none of the options suggest Tunisia will become more democratic,” however, despite US rhetoric for support of democracy, the cable noted, “the US-Tunisian bilateral relationship is likely to remain unaffected by the departure of Ben Ali,” that is, assuming the departure does not include a transition to democratic government. If problems arose for Ben Ali, and he became “temporarily incapacitated,” reported the U.S. Embassy, “he could turn over a measure of presidential authority to Prime Minister Mohammed Ghannouchi,” who had close ties to the West and Americans, in particular.[5] Ghannounchi, incidentally, was implanted as the interim president following Ben Ali’s escape to Saudi Arabia in January 2011, though shortly thereafter had to resign due to popular opposition, since he was a high official in Ben Ali’s government.

In July of 2009, a diplomatic cable from the American Embassy in Tunis noted that Tunisia is “troubled,” and that, “many Tunisians are frustrated by the lack of political freedom and angered by First Family corruption, high unemployment and regional inequities.” The Ambassador noted that while America seeks to enhance ties with Tunisia commercially and militarily, there are also major setbacks, as “we have been blocked, in part, by a Foreign Ministry that seeks to control all our contacts in the government and many other organizations.” America had successfully accomplished a number of goals, such as “increasing substantially US assistance to the military,” and “strengthening commercial ties,” yet, “we have also had too many failures.” The same cable noted: “Tunisia is a police state, with little freedom of expression or association, and serious human rights problems.” Ben Ali’s regime relies “on the police for control and focus[es] on preserving power,” while “corruption in the inner circle is growing.” The Embassy noted, however, that with “high unemployment and regional inequalities” in the country, “the risks to the regime’s long-term stability are increasing.”[6]

So how did the United States seek to preserve “stability”? Imperial powers do what they do best: provide the means to continue repression and control. Between 1987, when Ben Ali came to power and 2009, the United States provided the government of Tunisia with a total of $349 million in military aid.[7] In 2010, the United States provided Tunisia with $13.7 million in military aid alone.[8]

Tunisia, which was a former French colony, also had strong relations with France. During the outbreak of the crisis in December of 2010, the French suggested they would help Ben Ali by sending security forces to Tunisia to “resolve the situation” in a show of “friendship” to the regime.[9] The French foreign minister suggested that France could provide better training to Tunisian police to restore order since the French were adept in “security situations of this type.” Jacques Lanxade, a retired French admiral, former military chief of staff and former French ambassador to Tunis noted that the French had “continued public support of this regime because of economic interests,” and added: “We didn’t take account of Tunisian public opinion and thought Ben Ali would re-establish his position.”[10]

This imperial logic has been given terms and justifications from establishment intellectuals and academics in the United States and other Western powers. Academics with the Brookings Institution, an influential U.S. think tank, suggested in 2009 that this was the logic of “authoritarian bargains,” in which dictatorships in the region were able to maintain power through a type of “bargain,” where “citizens relinquish political influence in exchange for public spending,” suggesting that: “non-democratic rulers secure regime support through the allocation of two substitutable ‘goods’ to the public: economic transfers and the ability to influence policy making.”[11]

In 2011, those same academics wrote an article for the Brookings Institution in which they asked if the “Arab authoritarian bargain” was collapsing, noting that as economic conditions deteriorated and unemployment rose, with neoliberal reforms failing to provide economic opportunities for the majority of the populations, the bargain – or “contract” – between dictators and the populations was “now collapsing,” adding that, “the strategies used by Arab leaders to maintain power may have run their course,” noting: “Partial political liberalization may not be enough at this point to make up for the current inability to deliver economic security and prosperity, spelling the final demise of Arab authoritarian bargain.”[12]

F. Gregory Gause III, writing in Foreign Affairs, the establishment journal of the Council on Foreign Relations, the most prominent foreign policy think tank in the United States, referred to this as “authoritarian stability” theory. Following the initial Arab Spring uprisings, he wrote about the “myth” of authoritarian stability, noting that many academics had focused on trying to understand “the persistence of undemocratic rulers” in the region, though implicitly without questioning the imperial relations between the local governments and the dominant Western powers. Gause himself acknowledged that he had written an article for Foreign Affairs in 2005 in which he argued that, “the United States should not encourage democracy in the Arab world because Washington’s authoritarian Arab allies represented stable bets for the future,” and that, “democratic Arab governments would prove much less likely to cooperate with U.S. foreign policy goals in the region.” Gause then reflected in 2011 that, “I was spectacularly wrong.”[13]

Marwan Muasher is vice president for studies at the Carnegie Endowment, a prominent American think tank, and was previously foreign minister and deputy prime minister in the Jordanian dictatorship. Following events in Tunisia, Muasher wrote an article for the Carnegie Endowment in which he explained why the events were not foreseen, noting that: “The traditional argument put forward in and out of the Arab world is that there is nothing wrong, everything is under control.” Thus, wrote Muasher, “entrenched forces argue that opponents and outsiders calling for reform are exaggerating the conditions on the ground,” an argument which he noted, “has been fundamentally undermined by the unfolding events in Tunisia.” Because Tunisia had comparably low economic problems, a small opposition, and a “strong security establishment,” it was thought that “the risk of revolt was considered low.” Muasher wrote: “It wasn’t supposed to happen in Tunisia and the fact that it did proves that fundamental political reforms – widening the decision-making process and combating corruption – are needed around the entire Arab world.”[14]

This concept of “there is nothing wrong, everything is under control,” has been referred to by Noam Chomsky as the “Muasher doctrine,” noting that this has been consistent U.S. policy in the region since at least 1958, when Eisenhower’s National Security Council acknowledged that the US supported dictators and opposed democracy, and that this was a rational policy to serve American interests in the region.[15]

The National Security Council document stated that the Middle East was “of great strategic, political, and economic importance to the Free World,” meaning the West, and United States in particular, and this was largely due to the fact that the region “contains the greatest petroleum resources in the world.” Thus, the National Security Council stated, “it is in the security interest of the United States to make every effort to insure that these resources will be available and will be used for strengthening the Free World.” The document further wrote that: “In the eyes of the majority of Arabs the United States appears to be opposed to the realization of the goals of Arab nationalism,” and that the people in that part of the world “believe the United States is seeking to protect its interest in Near East oil by supporting the status quo and opposing political or economic progress,” which included US support for “reactionary” regimes and America’s “colonial” allies in Europe, notably France and Great Britain. These beliefs, the report noted, were indeed accurate, that “our economic and cultural interests in the area have led… to close U.S. relations with elements in the Arab world whose primary interest lies in the maintenance of relations with the West and the status quo in their countries.”[16]

Acknowledging this, the NSC document stated that instead of “attempting merely to preserve the status quo,” the United States should “seek to guide the revolutionary and nationalistic pressures throughout the area into orderly channels which will not be antagonistic to the West and which will contribute to solving the internal social, political and economic problems of the area.” Though this would of course include providing “military aid to friendly countries to enhance their internal security and governmental stability,” which essentially amounted to maintaining the status quo. The same document also added that, “we cannot exclude the possibility of having to use force in an attempt to maintain our position in the area.”[17]

And so then we come up to present day, where the United States maintains the same policy, as Chomsky suggested, “the Muasher doctrine” of “there is nothing wrong, everything is under control.” But everything is clearly no longer under control, and there are many things that clearly are wrong. Just as the 1958 National Security Council document suggested guiding “revolutionary and nationalistic pressures” into “orderly channels which will not be antagonistic to the West,” so too were US planners in recent years seeking to do the same.

Top US policy planners at the Council on Foreign Relations produced a report – and strategic blueprint – for the United States to follow in 2005, entitled, In Support of Arab Democracy: Why and How, co-chaired by former Clinton-era Secretary of State Madeleine Albright, who sits on the board of the Council on Foreign Relations, the Aspen Institute, and chair of the National Democratic Institute for International Affairs. The other co-chair of the Task Force report was Vin Weber, former Congressman and member of the board of the National Endowment for Democracy (NED), a US-government-supported organization promoting state-capitalist “liberal” democracy around the world, so long as it aligns with U.S. strategic interests. Other members of the Task Force which produced the report held previous or present affiliations with First National Bank of Chicago, Occidental Petroleum, the Carnegie Endowment, the World Bank, Brookings Institution, Hoover Institution, the U.S. State Department, National Security Council, National Intelligence Council, the American Enterprise Institute, the IMF, AOL-Time Warner, and Goldman Sachs.[18] In short, the report was produced by no less than a select group of America’s strategic and intellectual elite.

Published in 2005, the report suggested that “democracy and freedom have become a priority” for the United States in the Middle East, though there are conditions to Washington’s ability and interest in promoting these concepts: “First, does a policy of promoting democracy serve U.S. interests and foreign policy goals? Second, if so, how should the United States implement such a policy, taking into account the full range of its interests?” To the first question, the report suggested that it was in the U.S. interest to promote democracy in the Arab world, noting: “Although democracy entails certain inherent risks, the denial of freedom carries much more significant long-term dangers. If Arab citizens are able to express grievances freely and peacefully, they will be less likely to turn to more extreme measures.”[19] However, as the report noted: “the United States should promote the development of democratic institutions and practices over the long term, mindful that democracy cannot be imposed from the outside and that sudden, traumatic change is neither necessary nor desirable.” Most importantly, the report suggested: “America’s goal in the Middle East should be to encourage democratic evolution, not revolution.”[20]

The United States was not interested in rapid change, since, the report argued, “if Washington pushes Arab leaders too hard on reform, contributing to the collapse of friendly Arab governments, this would likely have a deleterious effect on regional stability, peace, and counterterrorism operations.” The report itself concluded: “While transitions to democracy can lead to instability in the short term, the Task Force finds that a policy geared toward maintaining the authoritarian status quo in the Middle East poses greater risks to U.S. interests and foreign policy goals.”[21]

Thus, when it comes to the issue of choosing between supporting a “dictatorship” or “democracy,” the issue is one of interest: which regime supports U.S. and Western interests better? In the short-term, dictatorships provide “authoritarian stability” and maintain control, however, in the long-term, a transition to a Western-style democratic system allows for less pressure built up against the system, and against the West itself. Dictatorships provide short-term “stability” (i.e., control), while top-down democracies provide long-term “stability.” The question, then, is merely of managing a transition from one to the other, no small task for an imperial power: how to maintain support for a dictator while encouraging the slow evolution of democratic governance.

The issue of “democracy” is further complicated by how it is defined or pursued. For the United States and its Western allies, “democracy” is not the goal, but rather a means to a goal. The goal is, always has been, and always will be, “stability and prosperity,” control and profit. When the dictatorships fail to bring about stability and prosperity, “democracy” – so long as it is constructed along Western liberal state-capitalist lines – will be the preferred option. The European Union, when reporting on its own efforts to promote democracy in the Mediterranean region, noted that, “we believe that democracy, good governance, rule of law, and gender equality are essential for stability and prosperity.”[22] In other words, democracy is not the goal: control and profit is the goal. The means are merely incidental, whether they be through dictatorships, or top-down democratic structures.

The problem in the Arab world is deepened for the United States when one looks at public opinion polls from the region. Just prior to the outbreak of protests in Tunisia, a major Western poll on Arab public opinion was conducted by the University of Maryland and Zogby International, published in the summer of 2010. The results were very interesting, noting that only 5% and 6% of respondents in 2010 believed that “promoting democracy” and “spreading human rights” were the two factors (respectively) which were most important in America’s foreign policy in the region. At the top of the list of priorities, with 49% and 45% respectively, were “protecting Israel” and “controlling oil,” followed by 33% each for “weakening the Muslim world” and “preserving regional and global dominance.” Further, 92% of respondents felt that Iran has a right to its nuclear program if it is peaceful, and 70% feel that right remains even if Iran is seeking nuclear weapons. Roughly 57% of respondents felt that if Iran acquired nuclear weapons, things would be “more positive” for the region, compared to 21% who thought it would be “more negative.” The poll asked which two countries posed the largest threat to the region, with Israel at 88% and the United States at 77%, while Iran was viewed as one of the two major threats to the region by only 10% of respondents, just above China and equal to Algeria.[23]

In other words, if truly representative – or genuine – democracies emerged in the region, they would be completely counter to U.S. strategic interests in the region, and thus, real democracy in the Arab world is not in the American interest. This makes the American strategic interests in the transitions of the ‘Arab Spring’ all the more important to attempt to manage and control. Genuine democracy would bring an end to American and Western hegemony, yet, the “Muasher doctrine” of “everything is under control” has failed in the case of both Tunisia and Egypt. What then, is left for Western interests?

Tunisia’s Transition to “Democracy”

Immediately following Ben Ali’s departure from Tunisia to Saudi Arabia, the land of exiled dictators, a “caretaker” government was quickly established in order to “lead the transition to democracy.” Mohamed Ghannouchi, Ben Ali’s prime minister (and the American favourite to replace him), helped to form a “unity” government, but after one day of existence, four opposition members quit the government, including three ministers from the UGTT trade union, saying they had “no confidence” in a government full of members from Ben Ali’s regime. Hundreds of people, led by trade unionists, took to the streets in protest against the transitional government.[24]

Six members from Ben Ali’s regime appeared in the “unity” government, presided over by the former Parliamentary Speaker Fouad Mebazaa. Ghannouchi stepped down in late February following popular opposition to his participation in the “unity” government, though he was replaced by Ben Ali’s former foreign minister.[25] In February of 2011, the United States offered “military training” to Tunisia in the follow-up to the planned elections for later in the year, to make Tunisia a “model” revolution for the Arab world.[26]

A public opinion poll conducted in Tunisia in May of 2011 revealed that there had been “a steep decline in confidence for the transition period,” noting that in March, a poll revealed that 79% of Tunisians believed the country was headed in the right direction, compared to only 46% who thought so in May. Roughly 73% of Tunisian’s felt that the economic situation was “somewhat bad or very bad,” and 93% of respondents said they were “very likely” to vote in coming elections.[27]

In October of 2011, Tunisians went to the polls for their first democratic election, “the first vote of the Arab spring.” The election was designed to elect an assembly which would be tasked with one mission: to draft a constitution before parliamentary elections. The An-Nadha (Ennahda) party, an Islamist party which was banned under Ben Ali, was expected to receive most of the votes, though most Tunisians felt guarded in terms of seeking to protect their “unfinished revolution.” Lawyers lodged complaints that in the nine months since Ben Ali fled Tunisia, torture and police brutality continued, while human rights activists noted that cronies from Ben Ali’s regime continued to dominate the corrupt judicial system. One human rights activist noted, “We are overwhelmed with cases of human rights abuses. You wouldn’t believe there had been a revolution… Torture is the way things are done, it’s systematic. They have not changed their practices at all,” referring to the police.[28]

On October 23, 2011, the Tunisian elections took place, with the Islamist party Ennahda winning 89 out of 217 seats, after which it joined with two secular parties to form a ruling coalition known as the ‘Troika.’ A year after the Troika had been in power, by October of 2012, Tunisians felt disheartened by the pace of the revolution. One young activist stated that, “They are failing on security, they are failing on the economy, and they are failing when it comes to liberties and rights… They have nothing to do with the revolution. They are completely disconnected.” Amnesty International even noted in October of 2012 that: “The authorities need to seize this historic opportunity and confront the painful legacy of abuse and violations of the pasty and enshrine in law and in practice universal human rights with the aim of making the rule of law a reality in the new Tunisia.”[29]

Rachid Ghannouchi, the party’s chairman (no relation to Mohammed Ghannouchi), said that Ennahda “pledges to continue working with our national partners towards building a national consensus that takes Tunisians forward towards the protection of their revolution and achievement of its aims.” Over the previous year, the opposition within Tunisia had time to develop better than it did prior to the October 2011 elections, with new parties and organizations emerging. One, a decidedly non-mainstream party, the Tunisian Pirate Party, advocates direct democracy and freedom of expression, with its leader stating, “The classic political parties are trying to buy and sell people. The youth of Tunisia, we refuse this masquerade, this system… All they want is power, they don’t listen to us. They have betrayed the people.” On the other hand, the government was facing increasing pressure not only from the left opposition, but from the more conservative Salafists, ultra-conservative Islamists, who reject democracy and want Ennahda to take a firm grip on power.[30]

At the time of Ben Ali’s overthrow, Tunisia had an unemployment rate of 13%, but by the end of 2011 it had risen to 18%, where it remains to this day, and was as high as 44% among young university graduates. Strikes, sit-ins, and protests had continued throughout 2012, and with 800,000 unemployed Tunisians, some were looking to new avenues for answers. The Salafists were providing poor young people with a different path. A former director at Tunisia’s UGTT trade union noted, “Salafism taps its social base into a pool of often deprived people inhabiting the so-called poverty belts surrounding inner cities… The rise of salafism is a socio-economic phenomenon before being a religious one.” Salafists call for a strict enforcement of religious law, and have taken part in protests which shout anti-Semitic and homophobic chants at times, leading many to fear the potential for women’s rights as well as those of various minority groups.[31]

Salafists have also been linked to attacks on individuals and groups, opposition meetings and organizations. When complaints are made to the Ennahda government’s police forces, little is done to address the issues to persecute crimes. Human Rights Watch noted: “There is an unwillingness or an inability to arrest individuals… People have been attacked by people they identify as Salafis; they file a complaint to the judicial police, and in many cases the guy is never arrested.”[32]

The Obama administration sought to contribute to the “stability” of the new regime in Tunisia by providing $32 million in military aid from January of 2011 to spring of 2012.[33] An American General and head of the U.S. Africom (Africa Command) noted that on top of the military aid, the United States was continuing to train Tunisian soldiers, having already trained 4,000 in the previous decade.[34] It would appear to be no less than the Muasher Doctrine with a difference face.

Clashes have increased between opposition parties and trade unionists with pro-government supporters as well as Salafists. In October of 2012, an opposition figure died after clashes between his supporters and pro-government forces calling themselves the League for the Protection of the Revolution.[35] On December 17, 2012, at an event commemorating the two-year anniversary of the protests that began the revolution, angry protesters hurled rocks at the Tunisian president Moncef Marzouki and the parliamentary speaker in Sidi Bouzid. As the president and speaker were hustled away by security forces, protesters chanted, “the people want the fall of the government.”[36]

By December of 2012, it was clear that the frustration of Tunisians unsatisfied with the failure of the subsequent governments to meet their demands was “starting to overflow again.” In late November, the government had even sent troops to Siliana following four days of protests spurred on by demands for jobs and government investment. President Moncef Marzouki stated that, “Tunisia today is at a crossroads,” though admitted that the government had not “met the expectations of the people.” With unemployment remaining at 18%, a third of the unemployed being college graduates, one publishing company owner noted that, “Ben Ali ignored the blinking red lights on the economy, and that is what got him thrown out… The unemployed are an army in a country the size of Tunisia.” Since the revolution, the United States had provided Tunisia with $300 million, with the European Union providing $400 million, and the World Bank approving a $500 million loan, all in an attempt to prop up the new government, though it remained incapable of meeting the demands of its population.[37]

A poll conducted by the International Republic Institute was published in October of 2012, revealing that for Tunisians, “employment, economic development, and living standards were chosen most often as top priorities for the current government,” though 67% of respondents felt the country was moving in the “wrong direction.”[38] In another survey from late 2012, nearly half of Tunisians reported that they were “worse off” since prior to the revolution, with only 14% who felt their personal situation had improved. For Tunisians, the success of the revolution was defined more in terms of economic issues, with 32% stating that democracy “means the distribution of basic necessities – food, clothing, and shelter – to all citizens,” while 27% define democracy as the right to criticize leaders, compared to only 25% who defined it “as alteration of leaders through elections.”[39]

The Second Spark?

On February 6, 2013, a secular party leader and opposition figure, Chokri Belaid, a major critic of the Ennahda government, was assassinated outside of his home, shot in the head and neck, marking the first political assassination in Tunisia since the colonial period. Belaid was a major critic of the government’s failure to prosecute the criminal activities of violent religious groups linked to Salafists and pro-government forces.[40] His death triggered widespread protests, many of which turned violent as government forces dispersed them using tear gas, while Tunisia’s biggest union, the UGTT, called for a general strike. Many felt that Ennahda was responsible for his murder, if not directly then by failing to reign in the radical Islamists.[41]

On February 8, a general strike brought tens of thousands of Tunisians into the streets in protest and in mourning of Chokri Belaid. Belaid was a respected opposition figure, but also a prominent trade unionist and lawyer, and was “one of the most outspoken critics of the post-revolution coalition government led by the moderate Islamist Ennahda party.” The day before his assassination he had appeared on television criticizing the increased political violence in the country. One barrister noted during the protest, “not since colonial times in the early 1950s has Tunisia seen a clear political assassination in the street.” Many spoke out against the shadowy Leagues of the Protection of the Revolution, made up of small groups of men “who are accused of using thugs to stir clashes at opposition rallies and trade union gatherings.” Belaid was a prominent critic of these groups, which he had publicly condemned as being linked to the ruling Ennahda party, a claim the party denies.[42] The president of a Tunisian NGO, Jalila Hedhli-Peugnet, stated that Belaid “was not assassinated under the dictatorship of Ben Ali, now he is assassinated under the democracy of Ennahda.”[43]

Coincidentally, on the day of Belaid’s assassination, Human Rights Watch released a report raising concerns about Tunisia for “the slow pace in reforming security operations and the judiciary, the failure to investigate and prosecute physical assaults by people apparently affiliated with violent groups, and the prosecution of nonviolent speech offenses.” The worry for the region over two years since the Arab Spring began, reported HRW, was whether the new governments would respect human rights, which “will determine whether the Arab uprisings give birth to genuine democracy or simply spawn authoritarianism in new clothes.” Throughout 2012, the courts in Tunisia applied already-existing repressive laws of the Ben Ali dictatorship to persecute nonviolent speech which the government considered harmful to “values, morality, or the public order, or to defame the army.” Artists have been charged for sculpting artwork deemed “harmful to public order and morals,” while two bloggers received prison terms of seven-and-a-half years for writing posts considered “offensive to Islam.” Over 2012, “assaults were carried out against intellectuals, artists, human rights activists, and journalists by individuals or groups who appear to be motivated by a religious agenda.” After reports had been filed on multiple occasions, “the police proved unwilling or unable to find or arrest the alleged attackers.”[44]

In January of 2013, Amnesty International noted that after two years since Ben Ali fled Tunisia, the abuses of the police forces and judicial system had yet to be addressed, specifically in relation to the period of the uprising between 17 December 2010 and just after Ben Ali fled, when roughly 338 people were killed and over 2,000 injured in protests. While Ben Ali was tried in absentia for the killings, only a few members of the security forces had been convicted for killing protesters.[45]

Following the assassination of Belaid, Amnesty International immediately called for an “independent and impartial investigation” into his murder, noting that attacks against political opposition groups had been increasing, and that a meeting which Chokri Belaid had attended the Saturday before his murder was violently attacked and that Belaid had been receiving death threats. The Middle East and North Africa Deputy Director at Amnesty International noted: “Two years after the ousting of former President Ben Ali, there is an increasing mistrust in the institutions that are supposed to protect human rights and Tunisians will not be satisfied with a sham investigation.”[46]

Following the assassination, Tunisian Prime Minister Hamadi Jebali suggested that the coalition government should dissolve and form a non-partisan, technocratic government, though this was immediately rejected by members of his Ennahda party itself. All across Tunisia, a general strike was observed while tens of thousands took to the streets in multiple cities to mark the funeral of Belaid and to protest the government, often clashing with security forces.[47]

The Congress for the Republic (CPR), a secular party which was a member of the coalition government and whose leader, Moncef Marzouki, is president of Tunisia, said on Sunday February 10 that its party members would quit the government in protest against the handling of the political crisis, as tensions between the parties continued to accelerate. Meanwhile, pro-Ennadha government supporters also took to the streets, though in significantly less numbers than the opposition, to voice their support for the government.[48]

Thus, with the Tunisian government on the verge of collapse, with the people seemingly on the verge of another uprising, and with increasing tensions between secular and Islamist groups, Tunisia continues its unfinished revolution. It is tempting to draw the comparison to Egypt, where the Islamist Muslim Brotherhood party holds power, and where the population is again rising up against the government and in support of the revolutionary ideals which led them into the streets two years prior. As thousands again took to the streets in Egypt on February 8, they were met with riot police and tear gas.[49] It would appear that the Western-sponsored attempts to prop up Islamist governments to establish control over their populations is backfiring. Where the revolution goes, only posterity can say, but one thing is clear: the unfinished revolution in Tunisia – as elsewhere – is only finished, and democracy is only achieved, when the people themselves have made it and declared it to be so.

For those of us in the West, we must acknowledge that there is a stark contrast between the rhetoric and reality of our nations, as in, the difference between what our governments say and do. For all the blather and trumpeting about democracy we hear, the actions of our nations go to arming, training, and supporting repressive regimes, whether they take the form of secular authoritarian dictatorships, or Islamist “democratic” coalitions.

As we continue our own struggle for democracy at home, whether it is students in the streets of Quebec, Indignados in Spain, anarchists in Greece, Occupy Wall Street activists in New York, or the indigenous movement of Idle No More, we must realize that the same tax dollars which are used to have the police assault and repress protesters at home, are also used to assault, repress, and kill our brothers and sisters abroad in Tunisia, Egypt, Bahrain, and beyond. Their revolution is our revolution. Their democracy is our democracy. Their freedom is our freedom. And their future… is our future.

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]       Mehdi Mabrouk, “A Revolution for Dignity and Freedom: Preliminary Observations on the Social and Cultural Background to the Tunisian Revolution,” The Journal of North African Studies (Vol. 16, No. 4, December 2011), pages 626-627.

[2]       Ibid, pages 629-629.

[3]       Yasmine Ryan, “How Tunisia’s revolution began,” Al-Jazeera, 26 January 2011:

http://www.aljazeera.com/indepth/features/2011/01/2011126121815985483.html

[4]       Richard Falk, “Ben Ali Tunisia was model US client,” Al-Jazeera, 25 January 2011:

http://www.aljazeera.com/indepth/opinion/2011/01/201112314530411972.html

[5]       US Embassy Cables, “US embassy cables: Finding a successor to Ben Ali in Tunisia,” The Guardian, 17 January 2011:

http://www.guardian.co.uk/world/us-embassy-cables-documents/49401

[6]       The US Embassy Cables, “US embassy cables: Tunisia – a US foreign policy conundrum,” The Guardian, 7 December 2010:

http://www.guardian.co.uk/world/us-embassy-cables-documents/217138

[7]       Daya Gamage, “Massive U.S. Military Aid to Tunisia despite human rights abuses,” Asian Tribune, 18 January 2011:

http://www.asiantribune.com/news/2011/01/18/massive-us-military-aid-tunisia-despite-human-rights-abuses

[8]       NYT, “Challenges Facing Countries Across North Africa and the Middle East,” The New York Times, 17 February 2011:

http://www.nytimes.com/interactive/2011/02/17/world/middleeast/0217-mideast-region-graphic.html

[9]       Samer al-Atrush, “Tunisia: Why the Jasmine Revolution won’t bloom,” The Telegraph, 16 January 2011:

http://www.telegraph.co.uk/news/worldnews/africaandindianocean/tunisia/8261961/Tunisia-Why-the-Jasmine-Revolution-wont-bloom.html

[10]     Steven Erlanger, “France Seen Wary of Interfering in Tunisia Crisis,” The New York Times, 16 January 2011:

http://www.nytimes.com/2011/01/17/world/africa/17france.html

[11]     Raj M. Desai, Anders Olofsgard, and Tarik M. Yousef, “The Logic of Authoritarian Bargains,” Economics & Politics (Vol. 21, No. 1, March 2009), pages 93-94.

[12]     Raj M. Desai, Anders Olofsgard and Tarik Yousef, “Is the Arab Authoritarian Bargain Collapsing?,” The Brookings Institution, 9 February 2011:

http://www.brookings.edu/research/opinions/2011/02/09-arab-economies-desai-yousef

[13]     F. Gregory Gause III, “Why Middle East Studies Missed the Arab Spring: The Myth of Authoritarian Stability,” Foreign Affairs (Vol. 90, No. 4, July/August 2011), pages 81-82.

[14]     Marwan Muasher, “Tunisia’s Crisis and the Arab World,” the Carnegie Endowment for International Peace, 24 January 2011:

http://carnegieendowment.org/2011/01/24/tunisia-s-crisis-and-arab-world/1n0e

[15]     Noam Chomsky, “Is the world too big to fail?,” Al-Jazeera, 29 September 2011:

http://www.aljazeera.com/indepth/opinion/2011/09/201192514364490977.html

[16]     Document 5, “National Security Council Report,” Foreign Relations of the United States, 1958-1960, Vol. 12, Near East Region; Iraq; Iran; Arabian Peninsula, 24 January 1958.

[17]     Ibid.

[18]     Madeleine Albright and Vin Weber, In Support of Arab Democracy: Why and How (Council on Foreign Relations Task Force Report, 2005), pages 49-54.

[19]     Ibid, pages 3-4.

[20]     Ibid, page 4.

[21]     Ibid, pages 12-13.

[22]     Michelle Pace, “Paradoxes and contradictions in EU democracy promotion in the Mediterranean: the limits of EU normative power,” Democratization (Vol. 16, No. 1, February 2009), page 42.

[23]     Report, “2010 Arab Public Opinion Poll: Results of Arab Opinion Survey Conducted June 29-July 20, 2010,” The Brookings Institution, 5 August 2010:

http://www.brookings.edu/research/reports/2010/08/05-arab-opinion-poll-telhami

[24]     Angelique Chrisafis, “Tunisia’s caretaker government in peril as four ministers quit,” The Guardian, 18 January 2011:

http://www.guardian.co.uk/world/2011/jan/18/tunisia-caretaker-government-ministers-quit

[25]     “Tunisia: Key players,” BBC, 27 February 2011:

http://www.bbc.co.uk/news/world-africa-12214649

[26]     Tarek Amara, “US offers Tunisia security aid for ‘model’ revolution,” Reuters, 21 February 2011:

http://www.reuters.com/article/2011/02/21/tunisia-turkey-idAFLDE71K1P020110221

[27]     “IRI Releases Tunisia Poll,” International Republican Institute, 12 July 2011:

http://www.iri.org/news-events-press-center/news/iri-releases-tunisia-poll-0

[28]     Angelique Chrisafis, Katharine Viner, and Becky Gardiner, “Tunisians go to the polls still in the shadow of the old regime,” The Guardian, 22 October 2011:

http://www.guardian.co.uk/world/2011/oct/22/tunisian-elections-ben-ali

[29]     Yasmine Ryan, “Tunisian politicians struggle to deliver,” Al-Jazeera, 23 October 2012:

http://www.aljazeera.com/indepth/features/2012/10/20121023195656868113.html

[30]     Ibid.

[31]     Anne Wolf and Raphael Lefevre, “Tunisia: a revolution at risk,” The Guardian, 18 April 2012:

http://www.guardian.co.uk/commentisfree/2012/apr/18/tunisia-revolution-at-risk

[32]     Alice Fordham, “Tunisia’s revolution and the Salafi effect,” The National, 11 September 2012:

http://www.thenational.ae/news/world/africa/tunisias-revolution-and-the-salafi-effect#full

[33]     “Obama administration doubles military aid to Islamist-led Tunisia,” World Tribune, 27 April 2012:

http://www.worldtribune.com/2012/04/27/obama-administration-doubles-military-aid-to-islamist-led-tunisia/

[34]     AFP, “U.S. Gave Tunisia $32 million in Military Aid: General,” Defense News, 24 April 2012:

http://www.defensenews.com/article/20120424/DEFREG04/304240005/U-S-Gave-Tunisia-32-million-Military-Aid-General

[35]     “Tunisia clash leaves opposition official dead,” Al-Jazeera, 19 October 2012:

http://www.aljazeera.com/news/africa/2012/10/201210196219774432.html

[36]     Agencies, “Angry crowd hurls stones at Tunisian leaders,” Al-Jazeera, 17 December 2012:

http://www.aljazeera.com/news/africa/2012/12/20121217113425585914.html

[37]     Neil MacFarquhar, “Economic Frustration Simmers Again in Tunisia,” The New York Times, 1 December 2012:

http://www.nytimes.com/2012/12/02/world/africa/economic-frustration-simmers-again-in-tunisia.html?pagewanted=all&_r=0

[38]     “IRI Poll: Employment, Economy Most Important Priorities for Tunisians,” International Republican Institute, 3 October 2012:

http://www.iri.org/news-events-press-center/news/iri-poll-employment-economy-most-important-priorities-tunisians

[39]     Lindsay J. Benstead, Ellen Lust, and Dhafer Malouche, “Tunisian Revolution Is Work in Progress,” The Epoch Times, 27 December 2012:

http://www.theepochtimes.com/n2/opinion/tunisian-revolution-is-work-in-progress-328934.html

[40]     Editorial, “An Assassination in Tunisia,” The New York Times, 8 February 2013:

http://www.nytimes.com/2013/02/09/opinion/the-assassination-of-chokri-belaid-in-tunisia.html?_r=0

[41]     Eric Reguly, “Chaos in Tunisia tarnishes a revolution’s success story,” The Globe and Mail, 7 February 2013:

http://www.theglobeandmail.com/news/world/chaos-in-tunisia-tarnishes-a-revolutions-success-story/article8329058/

[42]     Angelique Chrisafis, “Tunisia gripped by general strike as assassinated Chokri Belaïd is buried,” The Guardian, 8 February 2013:

http://www.guardian.co.uk/world/2013/feb/08/tunisia-general-strike-belaid-buried

[43]     Rachel Shabi, “Tunisia is no longer a revolutionary poster-child,” The Guardian, 7 February 2013:

http://www.guardian.co.uk/commentisfree/2013/feb/07/tunisia-no-longer-revolutionary-poster-child

[44]     HRW, “Tunisia: Slow Reform Pace Undermines Rights,” Human Rights Watch, 6 February 2013:

http://www.hrw.org/news/2013/02/06/tunisia-slow-reform-pace-undermines-rights

[45]     “Document – Tunisia: Two years since the uprising, justice must be done and be seen to be done,” Amnesty International, 14 January 2013:

http://www.amnesty.org/en/library/asset/MDE30/002/2013/en/2788b8d3-9ef1-4f35-91ce-b07db7ac093c/mde300022013en.html

[46]     Press Releases, “Tunisia: Urgent need for investigation into Chokri Belaid’s killing,” Amnesty International, 6 February 2013:

http://www.amnesty.org/en/for-media/press-releases/tunisia-urgent-need-investigation-chokri-belaid-s-killing-2013-02-06

[47]     “Tunisia mourns murdered politician Chokri Belaid,” BBC, 8 February 2013:

http://www.bbc.co.uk/news/world-africa-21381617

[48]     Angelique Chrisafis, “Tunisian president’s party ‘to withdraw from coalition’,” The Guardian, 10 February 2013:

http://www.guardian.co.uk/world/2013/feb/10/tunisia-government-crisis

[49]     “Egypt protests turn violent,” Al-Jazeera, 8 February 2013:

http://www.aljazeera.com/news/middleeast/2013/02/201328173524471174.html

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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

2013_01_02_idlenomorehuffpo

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.

Why So Secretive? The Trans-Pacific Partnership as Global Corporate Coup

Why So Secretive? The Trans-Pacific Partnership as Global Corporate Coup

By: Andrew Gavin Marshall

The following is the second installment of a three-part exclusive on the TPP for Occupy.com.

Part 1: The Trans-Pacific Partnership: This is What Corporate Governance Looks Like

Part 3: The Trans-Pacific Partnership: What “Free Trade” Actually Means

The Trans-Pacific Partnership is the most secretive and “least transparent” trade negotiations in history.

Luckily for the populations and societies that will be affected by the agreement, there are public research organizations and alternative media outlets campaigning against it – and they’ve even released several leaks of draft agreement chapters. From these leaks, which are not covered by mainstream corporate-controlled news outlets, we are able to get a better understanding of what the Trans-Pacific Partnership actually encompasses.

For example, public interest groups have been warning that the TPP could result in millions of lost jobs. As a letter from Congress to United States Trade Representative Ron Kirk stated, the TPP “will create binding policies on future Congresses in numerous areas,” including “those related to labor, patent and copyright, land use, food, agriculture and product standards, natural resources, the environment, professional licensing, state-owned enterprises and government procurement policies, as well as financial, healthcare, energy, telecommunications and other service sector regulations.”

In other words, as promised, the TPP goes far beyond “trade.”

Dubbed by many as “NAFTA on steroids” and a “corporate coup,” only two of the TPP’s 26 chapters actually have anything to do with trade. Most of it grants far-reaching new rights and privileges to corporations, specifically related to intellectual property rights (copyright and patent laws), as well as constraints on government regulations.

The leaked documents revealed that the Obama administration “intends to bestow radical new political powers upon multinational corporations,” as Obama and Kirk have emerged as strong advocates “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 mostly toothless environmental, financial, and labor regulations that exist are unacceptable to the Obama administration and the 600 corporations aligned with the TPP who are giving him his orders.

The agreement stipulates that foreign corporations operating in the United States would no longer be subject to domestic U.S. laws regarding protections for the environment, finance or labor 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.

The “international tribunal” that 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 – fairly balanced in favor of corporate rights above anything else.

A public interest coalition known as Citizens Trade Campaign published a draft of the TPP chapter on “investment” revealing information about the “international tribunal” which would allow corporations to directly sue governments that have barriers to “potential profits.”

Arthur Stamoulis, the executive director of Citizens Trade Campaign, explained that the draft texts “clearly contain proposals designed to give transnational corporations special rights that go far beyond those possessed by domestic businesses and American citizens… A proposal that could have such broad effects on environmental, consumer safety and other public interest regulations deserves public scrutiny and debate. It shouldn’t be crafted behind closed doors.”

Public Citizen’s Global Trade Watch, a public interest organization, undertook an analysis of the leaked document on investment and explained that the international corporate tribunal would allow corporations to overturn national laws and regulations or demand enormous sums in compensation, with the tribunal “empowered to order payment of unlimited government Treasury funds to foreign investors over TPP claims.”

Even under NAFTA, over $350 million has been paid by NAFTA-aligned governments to corporations for “barriers” to investment “rights,” including toxic waste dumps, logging rules, as well as bans on various toxic chemicals.

Because let’s be clear: for corporations, such regulations and concerns over health, safety and environmental issues are perceived solely as “barriers” to investment and profit. Thus their “government” would sue the foreign government on behalf of the corporation, on the premise that such regulations led to potential lost profits, for which the corporation should be compensated.

The TPP allows the corporations to directly sue the government in question. All of the TPP member countries, except for Australia, have agreed to adhere to the jurisdiction of this international tribunal, an unelected, anti-democratic and corporate-staffed kangaroo-court with legal authority over at least ten nations and their populations.

Further, TPP countries have not agreed on a set of obligations for corporations to meet in relation to health, labor or environmental standards, and thus a door is opened for corporations to obtain even more rights and privileges to plunder and exploit. Where corporate rights are extended, human and democratic rights are dismantled.

One of the most important areas in which the TPP has a profound effect is in relation to intellectual property rights, or copyright and patent laws. Corporations have been strong advocates of expanding intellectual property rights, namely, their intellectual property rights.

Pharmaceutical corporations are major proponents of these rights and are likely to be among the major beneficiaries of the intellectual property chapter of the TPP. The pharmaceutical industry ensured that strong patent rules were included in the 1995 World Trade Organization agreement, but ultimately felt that those rules did not go far enough.

Dean Baker, writing in the Guardian, explained that stronger patent rules establish “a government-granted monopoly, often as long as 14 years, that prohibits generic competitors from entering a market based on another company’s test results that show a drug to be safe and effective.” Baker noted that such laws are actually “the opposite of free trade” since they “involve increased government intervention in the market” and “restrict competition and lead to higher prices for consumers.”

Essentially, what this means is that in poor countries where more people need access to life-saving drugs, and at cheaper cost, it would be impossible for companies or governments to manufacture and sell cheaper generic brands of successful drugs held by multinational corporate patents. Such an agreement would hand over a monopoly of price-controls to these corporations, allowing them to set the prices as they deem fit, thus making the drugs incredibly expensive and often inaccessible to the people who need them most.

As U.S. Congressman Henry Waxman correctly noted, “In many parts of the world, access to generic drugs means the difference between life and death.”

The TPP is expected to increase such corporate patent rights more than any other agreement in history. Generic drug manufacturers in countries like Vietnam and Malaysia would suffer. So would sales of larger generics manufacturers in the U.S., Canada, and Australia, which supply low-cost drugs to much of the world.

While the United States has given up the right to negotiate drug prices with pharmaceutical corporations (hence the exorbitant price for drugs purchased in the U.S.), countries like New Zealand and even Canada to a lesser extent negotiate drug prices in order to keep the costs down for consumers. The TPP will grant new negotiating privileges to corporations, allowing them to appeal decisions by governments to challenge the high cost of drugs or to go with cheap alternatives. Referring to these changes, the U.S. manager of Doctors Without Borders’ Access to Medicines Campaign stated, “Bush was better than Obama on this.”

But that’s not all the TPP threatens: Internet freedom is also a major target.

The Council of Canadians and OpenMedia, major campaigners for Internet freedom, have warned that the TPP would “criminalize some everyday uses of the Internet,” including music downloads as well as the combining of different media works. OpenMedia warned that the TPP would “force service providers to collect and hand over your private data without privacy safeguards, and give media conglomerates more power to send you fines in the mail, remove online content – including entire websites – and even terminate your access to the Internet.”

Also advanced under the TPP chapter on intellectual property rights, new laws would have to be put in place by governments to regulate Internet usage. OpenMedia further warned that, from the leaked documents on intellectual property rights, “there can be heavy fines for average citizens online,” adding: “you could be fined for clicking on a link, people could be knocked off the Internet and web sites could be locked off.”

The TPP, warned OpenMedia founder Steve Anderson, “will limit innovation and free expression.” Under the TPP, there is no distinction between commercial and non-commercial copyright infringement. Thus, users who download music for personal use would face the same penalties as those who sell pirated music for profit.

Information that is created or shared on social networking sites could have Internet users fined, have their computers seized, their Internet usage terminated, or even get them a jail sentence. The TPP imposes a “three strikes” system for copyright infringement, where three violations would result in the termination of a household’s Internet access.

So, why all the secrecy? Corporate and political decision-makers study public opinion very closely; they know how to manipulate the public based upon what the majority think and believe. When it comes to “free trade” agreements, public opinion has forced negotiators into the darkness of back-room deals and unaccountable secrecy precisely because populations are so overwhelmingly against such agreements.

An opinion poll from 2011 revealed that the American public has – just over the previous few years – moved from “broad opposition” to “overwhelming opposition” toward 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.” Only 17% of Americans in 2010 felt that “free trade agreements” benefit the U.S., compared to 28% in 2007.

Because public opinion is strongly – and increasingly – against “free trade agreements,” secrecy is required in order to prevent the public from even knowing about, let alone actively opposing, agreements like the Trans-Pacific Partnership. And this, as U.S. Trade Representative Kirk explained, is a very “practical” reason for all the secrecy.

Part III of Marshall’s investigative series on the Trans-Pacific Partnership will appear Monday.

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.

The Trans-Pacific Partnership: This is What Corporate Governance Looks Like

The Trans-Pacific Partnership: This is What Corporate Governance Looks Like

By: Andrew Gavin Marshall

The following is the first installment of a three-part exclusive for Occupy.com on the Trans-Pacific Partnership.

Originally published at Occupy.com

Part 2: The Trans-Pacific Partnership: This is What Corporate Governance Looks Like

Part 3: The Trans-Pacific Partnership: What “Free Trade” Actually Means

In 2008, the United States Trade Representative Susan Schwab announced the U.S. entry into the Trans-Pacific Partnership talks as “a pathway to broader Asia-Pacific regional economic integration.” Originating in 2005 as a “Strategic Economic Partnership” between a few select Pacific countries, the TPP has, as of October 2012, expanded to include 11 nations in total: the United States, Canada, Mexico, Peru, Chile, New Zealand, Australia, Brunei, Singapore, Vietnam and Malaysia, with the possibility of several more joining in the future.

What makes the TPP unique is not simply the fact that it may be the largest “free trade agreement” ever negotiated, nor even the fact that only two of its roughly 26 articles actually deal with “trade,” but that it is also the most secretive trade negotiations in history, with no public oversight, input, or consultations.

Since the Obama administration came to power in January of 2009, the Trans-Pacific Partnership has become a quiet priority for the U.S., which overtook the leadership role in the “trade agreement” talks. In 2010, when Malaysia joined the TPP, the Wall Street Journal suggested that the “free-trade pact” could “serve as a counterweight to China’s economic influence,” with Japan and the Philippines both expressing interest in joining the talks.

In the meantime, the Obama administration and other participating nations have been consulting and negotiating not only with each other, but with roughly 600 corporations involved. The TPP is accelerating the most dangerous free market policies of previous U.S. administrations, bestowing unprecedented powers and privileges upon Trans-National Corporations (TNCs) while dismantling regulations and laws without any democratic oversight or input.

This three-part investigative series examines the Trans-Pacific Partnership, a legally binding trade agreement for advancing transnational corporate tyranny and dismantling domestic democratic accountability.

I. Trade Representatives: The Global Corporate Lobby

Who negotiates trade agreements? The answer is simple: trade representatives. The term “trade representative” is essentially another way of saying “corporate lobbyist.”

To prove this point, it would be useful to quickly glance over the biographies of the important U.S. Trade Representatives (USTR) since the George H.W. Bush administration, when USTR Carla A. Hills was lead negotiator for NAFTA and the WTO.

Embedded within the U.S. foreign policy establishment, Hills had a long career in government and was the USTR from 1989 to 1993, after which she established and became CEO of Hills & Company, an international consulting firm with a focus on global trade and investment for clients such as the Coca-Cola Company, Procter & Gamble, American International Group (AIG), Novartis, Bechtel, Boeing, Rolls-Royce, Inter-American Development Bank, Pfizer and Chevron.

A few accolades: Hills is a member of the board of the Council on Foreign Relations, Gilead Sciences, and is on international advisory boards for Rolls Royce, the Coca-Cola Company and JPMorgan Chase. She is also a member of the Trilateral Commission, the Peterson Institute for International Economics and the Center for Strategic and International Studies (CSIS).

Following Hill, from 1993 to 1997, the U.S. Trade Representative was Michael Kantor, who now advises corporate clients as a partner in the law firm Mayer-Brown. A member of the board of CBRE (a real estate services company), Kantor also serves on the advisory boards of ING USA and Fleishman-Hillard, a public relations firm.

Next in line, from 1997 to 2001 the USTR was Charlene Barshefsky, who is now on the boards of American Express, the Estée Lauder Company and Intel; like Hill, she is a member of both the Trilateral Commission and the Council on Foreign Relations.

The USTR from 2001 to 2005 was Robert Zoellick, who afterwards served as Deputy Secretary of State, Vice Chairman of Goldman Sachs from 2006 to 2007, and President of the World Bank from 2007 to 2012. Following Zoellick, from 2005 to 2006, the USTR was Rob Portman, a U.S. Senator who was a possible running mate for Mitt Romney’s presidential campaign.

And only after him did Susan Schwab, the USTR from 2006 to 2009, commit the U.S. to joining the Trans-Pacific Partnership. Schwab has since joined the boards of FedEx, Caterpillar and Boeing. Based on the evidence of her and her predecessors’ tenures, it is safe to say there has been a significant interchange between “trade representatives” and “corporate representatives” — to the point where it is almost impossible to distinguish them apart.

Now let’s get even more caught up to speed on appointed “government officials” so we can know exactly what we’re talking about.

In 2008, as Obama was campaigning for president, he stated, “I have done more to take on lobbyists than any other candidate in this race. I don’t take a dime of their money, and when I am president, they won’t find a job in my White House.”

Within a week of becoming president, Obama changed his mind and his “transition team” (responsible for selecting the Obama cabinet) became co-chaired by John Podesta, co-founder with his brother Tony Podesta of the Podesta Group, a major Washington lobbying firm.

Podesta was Bill Clinton’s former chief of staff and, as co-chair of Obama’s transition team, he declared his team was implementing “rules that are the strictest, the most far-reaching ethics rules of any transition team in history.” A top lobbyist whose firm has represented clients ranging from Wal-Mart, BP and Lockheed Martin to the Egyptian military dictatorship, Podesta appeared the ideal figure to implement Obama’s “strict” rules against hiring corporate lobbyists, right?

A little further background: the Podesta Group counts among its recent lobbying successes the stalling of a Senate bill which was calling on Egypt “to curtail human rights abuses.” The Group’s website also boasts that it “challenged” Wall Street reform after “one of the world’s largest banking firms came to the Podesta Group seeking help with their opposition” to proposed regulations for banks.

Thus, it should come as little surprise that part of the “strictest” and most “far-reaching ethics rules” announced by John Podesta in relation to lobbying was that no official could be appointed to the Obama administration if s/he had been an active lobbyist within the previous two years. Luckily for Ron Kirk, Obama’s U.S. Trade Representative, these “strict” rules only applied to the Washington D.C. area; and since Kirk was a corporate lobbyist in Austin, Texas, for the investment bank Merrill Lynch (before it was taken over by Bank of America in 2008), the “far-reaching ethics” promised by Podesta didn’t reach Kirk.

Kirk’s main priority since becoming USTR has been the Trans-Pacific Partnership, worked on in secret for nearly four years with several other countries and 600 corporations. President Obama has called it “a next-generation trade agreement” and a “model” for future agreements.

But not everyone agrees.

In May of 2012, more than 30 legal scholars from nations that will be affected by the TPP signed a letter addressed to USTR Kirk expressing their “profound concern and disappointment at the lack of public participation, transparency and open government processes in the negotiation” of the TPP.

In late June of 2012, more than 130 members of Congress followed this up with a letter that they signed and sent to Kirk urging transparency in TPP negotiations, and an inclusion of Congressional consultations, stating: “We are troubled that important policy decisions are being made without full input from Congress.”

In his not-to-worry response, Kirk reassured the public: “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.”

Meanwhile, the TPP has received strong endorsements from large transnational corporations and their official lobbies, such as Thomas Donohue, the CEO of the U.S. Chamber of Commerce, who told the Financial Times that, “[t]his must be an agreement with high standards. These standards will set the bar on regulatory coherence, investment and intellectual property.”

Part of these “high standards,” according to a meeting of the Asia-Pacific Economic Co-operation group (APEC), are “deep commitments that go beyond tariff reduction and pass existing World Trade Organization standards.” In other words, it goes far beyond “trade.” This was confirmed by Iwan Azis, the head of the Asian Development Bank’s regional integration office, who stated that the TPP was intended to deal with “behind the border” issues, typically decided by domestic policy, and “which go beyond the normal scope of trade agreements” including issues of labor, environmental and intellectual property standards.

Azis commented: “As a concept, this is definitely something big… This is so comprehensive, it is like a Grade A agreement.” The TPP is designed “to be a structure on to which other nations, including possibly South Korea, and eventually even China, could be bolted.”

At the 2011 APEC summit, Chinese president Hu Jintao stated: “China supports the goal of the regional integration of the Asia-Pacific economy, using the East Asian free trade zone, full economic partnerships in Asia and the Trans-Pacific Partnership as foundations.”

The aim of the TPP appears to be in establishing a core “trade bloc” in order “to create a gravitational force that would bring others in,” according to Karan Bhatia, the Vice-President for international law at General Electric and a former deputy U.S. trade representative. Ultimately, this objective includes bringing both Japan and China into the fold.

In May of 2012, Kirk stated that he “would love nothing more” than to have China join the TPP, following the more immediate additions of Mexico, Canada, and Japan. And in November of 2011, President Obama spoke to the Australian parliament, explaining: “I have directed my national security team to make our presence and missions in the Asia Pacific a top priority… The United States is a Pacific power and we are here to stay.”

One observer and critic has noted that the TPP has the potential to become a new “global trade agreement.” Charlene Barshefsky, the USTR from 1997 to 2001, wrote an article for the Wall Street Journal in October of 2012 in which she strongly endorsed the TPP as a “crucial opportunity” to overcome “barriers to innovation.” Referring to the TPP as the “most important trade negotiation of the past decade,” Barshefsky wrote that it “will set the terms of trade for many years in the world’s most economically dynamic region.”

Gary Horlick, who is rated one of the world’s top international trade lawyers with a long career representing major U.S. and global multinational corporations, and more than 20 countries in international trade negotiations and disputes – and who was the first Chairman of the World Trade Organization’s Permanent Group of Experts on subsidies – commented on the TPP: “This is the least transparent trade negotiation I have ever seen.” As part of this “transparency,” participants in the negotiations had to sign a memorandum of understanding which forbids them from releasing any “negotiating documents until four years after a deal is done or abandoned.”

What Horlick referred to as the “least transparent trade negotiations” he had ever seen, Kirk referred to as “the most engaged and transparent process” possible. Perhaps this can be explained by the fact that Kirk has access to the draft document and observes and participates in the negotiations, unlike the representative bodies of governments or their populations.

So let’s call this what it is: a transnational corporate coup over the democratic process and public accountability.

Kirk explained that “there’s a practical reason” for all the secrecy in the negotiations over the TPP: “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.”

Indeed, this is “practical.” After all, as he explained, if the talks were not done in secret, the public would be aware of what was being discussed, and if the public knew what was being planned, they would oppose it.

So secrecy is necessary in order to make the agreement as undemocratic and unaccountable as possible, to ensure that corporations get what they want while the public remains in the dark. Deceptive and saturated with disdain for democracy, certainly, but “practical” nevertheless.

Part II of Marshall’s investigative series on the Trans-Pacific Partnership will appear Wednesday.

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.

The Global Banking ‘Super-Entity’ Drug Cartel: The “Free Market” of Finance Capital

The Global Banking ‘Super-Entity’ Drug Cartel: The “Free Market” of Finance Capital

By: Andrew Gavin Marshall

HSBC bankers testifying before U.S. Senate on laundering billions in drug money (photo courtesy of The Economist, 21 July 2012)

 

This essay is the product of research undertaken for the first volume of The People’s Book Project. Please donate to help the first volume come to completion: a study of the institutions, ideas, and individuals of power and resistance in a snap-shot of the world today, looking at the global economic crisis, war and empire, repression and the global spread of anti-austerity and resistance movements.

I would like to introduce you, the reader, to some realities of our global banking system, resting on the rhetoric of free markets, but functioning, in actuality, as a global cartel, a “super-entity” in which the world’s major banks all own each other and own the controlling shares in the world’s largest multinational corporations, influence governments and policy with politicians in their back pockets, routinely engaging in fraud and bribery, and launder hundreds of billions of dollars in drug money, not to mention arms dealing and terrorist financing. These are the “too big to fail” and “too big to jail” banks, the centre of our global economy, what we call a “free market,” implying that the global banks – and corporations – have “free reign” to do anything they please, engage in blatantly criminal activities, steal trillions in wealth which is hidden offshore, and never get more than a slap on the wrist. This is the real “free market,” a highly profitable global banking cartel, functioning as a worldwide financial Mafia.

Scientific Research Proves the Existence of a Global Financial “Super-Entity”

In October of 2011, New Scientist reported that a scientific study on the global financial system was undertaken by three complex systems theorists at the Swiss Federal Institute of Technology in Zurich, Switzerland. The conclusion of the study revealed what many theorists and observers have noted for years, decades, and indeed, even centuries: “An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.” As one of the researchers stated, “Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market… Our analysis is reality-based.” Using a database which listed 37 million companies and investors worldwide, the researchers studied all 43,060 trans-national corporations (TNCs), including the share ownerships linking them.[1]

The mapping of ‘power’ was through the construction of a model showing which companies controlled which other companies through shareholdings. The web of ownership revealed a core of 1,318 companies with ties to two or more other companies. This ‘core’ was found to own roughly 80% of global revenues for the entire set of 43,000 TNCs. And then came what the researchers referred to as the “super-entity” of 147 tightly-knit companies, which all own each other, and collectively own 40% of the total wealth in the entire network. One of the researchers noted, “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network.” This network poses a huge risk to the global economy, as, “If one [company] suffers distress… this propagates.” The study was undertaken with a data set established prior to the economic crisis, thus, as the financial crisis forced some banks to die (Lehman Bros.) and others to merge, the “super-entity” would now be even more connected, concentrated, and problematic for the economy.[2]

The top 50 companies on the list of the “super-entity” included (as of 2007): Barclays Plc (1), Capital Group Companies Inc (2), FMR Corporation (3), AXA (4), State Street Corporation (5), JP Morgan Chase & Co. (6), UBS AG (9), Merrill Lynch & Co Inc (10), Deutsche Bank (12), Credit Suisse Group (14), Bank of New York Mellon Corp (16), Goldman Sachs Group (18), Morgan Stanley (21), Société Générale (24), Bank of America Corporation (25), Lloyds TSB Group (26), Lehman Brothers Holdings (34), Sun Life Financial (35), ING Groep (41), BNP Paribas (46), and several others.[3]

In the United States, five banks control half the economy: JP Morgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs Group collectively held $8.5 trillion in assets at the end of 2011, which equals roughly 56% of the U.S. economy. This data was according to central bankers at the Federal Reserve. In 2007, the assets of the largest banks amounted to 43% of the U.S. economy. Thus, the crisis has made the banks bigger and more powerful than ever. Because the government invoked “too big to fail,” meaning that the big banks will be saved because they are very important, the big banks have incentive to make continued and bigger risks, because they will be bailed out in the end. Essentially, it’s an insurance policy for criminal risk-taking behaviour. The former president of the Federal Reserve Bank of Minneapolis stated, “Market participants believe that nothing has changed, that too-big-to-fail is fully intact.” Remember, “market” means the banking cartel (or “super-entity” if you prefer). Thus, they build new bubbles and buy government bonds (sovereign debt), making the global financial system increasingly insecure and at risk of a larger collapse than took place in 2008.[4]

When politicians, economists, and other refer to “financial markets,” they are in actuality referring to the “super-entity” of corporate-financial institutions which dominate, collectively, the global economy. For example, the role of financial markets in the debt crisis ravaging Europe over the past two years is often referred to as “market discipline,” with financial markets speculating against the ability of nations to repay their debt or interest, of credit ratings agencies downgrading the credit-worthiness of nations, of higher yields on sovereign bonds (higher interest on government debt), and plunging the country deeper into crisis, thus forcing its political class to impose austerity and structural adjustment measures in order to restore “market confidence.” This process is called “market discipline,” but is more accurately, “financial terrorism” or “market warfare,” with the term “market” referring specifically to the “super-entity.” Whatever you call it, market discipline is ultimately a euphemism for class war.[5]

The Global Supra-Government and the “Free Market”

In December of 2011, Roger Altman, the former Deputy Secretary of the Treasury under the Clinton administration wrote an article for the Financial Times in which he explained that financial markets were “acting like a global supra-government,” noting:

They oust entrenched regimes where normal political processes could not do so. They force austerity, banking bail-outs and other major policy changes. Their influence dwarfs multilateral institutions such as the International Monetary Fund. Indeed, leaving aside unusable nuclear weapons, they have become the most powerful force on earth.[6]

Altman continued, explaining that when the power of this “global supra-government” is flexed, “the immediate impact on society can be painful – wider unemployment, for example, frequently results and governments fail.” But of course, being a former top Treasury Department official, he went on to endorse the global supra-government, writing, “the longer-term effects can be often transformative and positive.” Ominously, Altman concluded: “Whether this power is healthy or not is beside the point. It is permanent,” and “there is no stopping the new policing role of the financial markets.”[7] In other words, the ‘super-entity’ global ‘supra-government’ of financial markets carries out financial extortion, overthrows governments and impoverishes populations, but this is ultimately “positive” and “permanent,” at least from the view of a former Treasury Department official. From the point of view of those who are being impoverished, the actual populations, “positive” is not necessarily the word that comes to mind.

In the age of globalization, money – or capital – flows easily across borders, with banks, hedge funds and other financial institutions acting as the vanguards of a new international order of global governance. Where finance goes, corporations follow; where corporations venture, powerful states stand guard of their interests. Our global system is one of state-capitalism, where the state and corporate interests are interdependent and mutually beneficial, at least for those in power. Today, financial institutions – with banks at the helm – have reached unprecedented power and influence in state capitalist societies. The banks are bigger than ever before in history, guarded by an insurance policy that we call “too big to fail,” which means that despite their criminal and reckless behaviour, the government will step in to bail them out, as it always has. Financial markets also include credit ratings agencies, which determine the supposed “credit-worthiness” of other banks, corporations, and entire nations. The lower the credit rating, the riskier the investment, and thus, the higher the interest is for that entity to borrow money. Countries that do not follow the dictates of the “financial market” are punished with lower credit ratings, higher interest, speculative attacks, and in the cases of Greece and Italy in November of 2011, their democratically-elected governments are simply removed and replaced with technocratic administrations made up of bankers and economists who then push through austerity and adjustment policies that impoverish and exploit their populations. In the age of the “super-entity” global “supra-government,” there is no time to rattle around with the pesky process of formal liberal democracy; they mean business, and if your elected governments do not succumb to “market discipline,” they will be removed and replaced in what – under any other circumstances – is referred to as a ‘coup.’

Banks and financial institutions provide the liquidity – or funds – for what we call “free markets.” Free markets in principle would allow for free competition between companies and countries, each producing their own comparative advantage – producing what they are best at – and trading with others in the international market, so that all parties rise in living standards and wealth together. The “free market” is, of course, pure mythology. In practice, what we call “free markets” are actually highly protectionist, regimented, regulated, and designed to undermine competition and enforce monopolization. The “free markets” serve this purpose for the benefit of large multinational corporations and banks.

When we use the term “free markets” we are generally referring to the “real” economy, legitimate and legal. When it comes to illegitimate markets, for example, the global drug trade, we do not tend to refer to them as “free markets” but rather, “illegal” and run by “cartels.” Cartels, like corporations, are hierarchically organized totalitarian institutions, where decisions and power and exercised from the top-down, with essentially no input going from the bottom-up. Large multinational corporations, like large international cartels, seek to control their particular market throughout entire nations, regions, and beyond. Often, co-operation between corporations allow them to function in an oligopolistic manner, where the collectively dominate the entire market, carving it up between them. Major oil companies, agro-industrial firms, telecommunications, pharmaceutical, military contractors and water management corporations are well-known for these types of activities.

Cartels have often been known to engage in a similar practice, though typically they are more competitive with each other. When interests are threatened – which is defined as when a corporation or cartel is at risk of losing its total dominance of its market in a particular region – conflict arises, and often violently so, with the potential for coups, assassinations, terror campaigns, and war. This is when the state intervenes to protect the market for the cartel or corporate interests. Thus, a market like the global drug trade functions relatively similar to those of the “legitimate” economy, pharmaceuticals, energy, technology, etc. The illicit trade in drugs is as much a “free market” as is the trade in automobiles or oil. And of course, the money ends up in the same place: the global supra-government of “financial markets.”

Banking Cartel or Drug Cartel… or What’s the Difference?

In 2009, the United Nations Office on Drugs and Crime reported that billions of dollars in drug money saved the major banks during the financial crisis, providing much-needed liquidity. Antonio Maria Costa, the head of the UN Office on Drugs and Crime stated that drug money was “the only liquid investment capital” available to banks on the brink of collapse, with roughly $325 billion in drug money absorbed by the financial system. Without identifying specific countries or banks, Costa stated that, “Inter-bank loans were funded by money that originated from the drugs trade and other illegal activities… There were signs that some banks were rescued that way.”[8]

In 2010, Wachovia Bank (now owned by Wells Fargo) settled the largest action ever under the U.S. bank secrecy act, paying a fine of $50 million plus forfeiting $110 million of drug money, of which the bank laundered roughly $378.4 billion out of Mexico. The federal prosecutor in the case stated, “Wachovia’s blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations.” The fine that the bank paid for laundering hundreds of billions of dollars in drug money was less than 2% of the bank’s 2009 profit, and on the same week of the settlement, Wells Fargo’s stock actually went up. The bank admitted in a statement of settlement that, “As early as 2004, Wachovia understood the risk” of holding such an account, but “despite these warnings, Wachovia remained in the business.” The leading investigator into the money laundering operations, Martin Woods, based out of London, had discovered that Wachovia had received roughly six or seven thousand subpoenas for information about its Mexican operation from the federal government, of which Woods commented: “An absurd number. So at what point does someone at the highest level not get the feeling that something is very, very wrong?” Woods had been hired by Wachovia’s London branch as a senior anti-money laundering officer in 2005, and when in 2007 an official investigation was opened into Wachovia’s Mexican operations, Woods was informed by the bank that he failed “to perform at an acceptable standard.” In other words, he was actually doing his job. In regards to the settlement, Woods stated:

The regulatory authorities do not have to spend any more time on it, and they don’t have to push it as far as a criminal trial. They just issue criminal proceedings, and settle. The law enforcement people do what they are supposed to do, but what’s the point? All those people dealing with all that money from drug-trafficking and murder, and no one goes to jail?[9]

As the former UN Office of Drugs and Crime czar Antonio Maria Costa said, “The connection between organized crime and financial institutions started in the late 1970s, early 1980s… when the mafia became globalized,” just like other major markets. Martin Woods added that, “These are the proceeds of murder and misery in Mexico, and of drugs sold around the world,” yet no one went to jail, asking, “What does the settlement do to fight the cartels? Nothing – it doesn’t make the job of law enforcement easier and it encourages the cartels and anyone who wants to make money by laundering their blood dollars. Where’s the risk? There is none.” He added: “Is it in the interest of the American people to encourage both the drug cartels and the banks in this way? Is it in the interest of the Mexican people? It’s simple: if you don’t see the correlation between the money laundering by banks and the 30,000 people killed in Mexico, you’re missing the point.” Woods, who now runs his own consultancy, told the Observer in 2011 that, “New York and London… have become the world’s two biggest laundries of criminal and drug money, and offshore tax havens. Not the Cayman Islands, not the Isle of Man or Jersey. The big laundering is right through the City of London and Wall Street.”[10]

Just as the “too big to fail” program acts as an insurance policy for the big banks to engage in constant criminal activity, taking ever-larger financial risks with the guarantee that they will be bailed out, the settlements and lack of criminal prosecutions for banks laundering drug money provides the incentive to continue laundering hundreds of billions in drug money, because so long as the fine is smaller than the profit accrued from such a practice, it comes down to a simple cost-benefit analysis: if the cost of laundering drug money is less than the benefit, continue with the policy. The same cost-benefit analysis goes for all forms of criminal activity by banks and corporations, whether bribery, fraud, or violating environmental, labour and other regulations. So long as the penalty is less than the profit, the problem continues.

An article in the Observer from July of 2012 referred to global banks as “the financial services wing of the drug cartels,” noting that HSBC, Britain’s biggest bank, had been called before the U.S. Senate to testify about laundering drug money from Mexican cartels, holding one “suspicious account” for four years on behalf of the largest drug cartel in the world, the Sinaloa cartel in Mexico.[11] In fact, a multi-year investigation into HSBC revealed that the bank was not only a major international drug money-laundering conduit, but also laundered money for clients with ties to terrorism. In July of 2012, as the Senate was publicly investigating HSBC, Antonio Maria Costa stated, “Today I cannot think of one bank in the world that has not been penetrated by mafia money.” The global drug trade is estimated to be worth roughly $380 billion annually, with most of the money made in the consumer markets of North America and Europe. Using the example of the $35 billion per year cocaine market in the United States, only about 1.5% of these profits make their way to the coca-leaf producers (mostly poor peasants) in South America (who became the target of our bombing and chemical warfare campaigns in the “war on drugs”), while the international traffickers get roughly 13% of the profits, with the remaining 85% earned by the distributors in the U.S. HSBC was accused of laundering the profits of the distributors.[12]

The U.S. Senate report concluded that HSBC had exposed the U.S. financial system to “a wide array of money laundering, drug trafficking, and terrorist financing,” including billions in “proceeds from illegal drug sales in the United States.” HSBC acknowledged, in an official statement, that, “in the past, we have sometimes failed to meet the standards that regulators and customers expect.” Among those “standards” that HSBC “sometimes failed to meet,” according to the Senate investigation, were financing provided to banks in Saudi Arabia and Bangladesh which were tied to terrorist organizations, while the bank’s regulator failed to take a single enforcement action against HSBC.[13] Among the terrorist organizations which potentially received financial assistance from HSBC through Saudi banks was al-Qaeda. HSBC put aside $700 million to cover any potential fines for such activities, which is not uncommon for banks to do. Banks like ABN Amro, Barclays, Credit Suisse, Lloyds and ING had all reached major settlements for admitting to facilitating transactions and engaging in money laundering for clients in Cuba, Iran, Libya, Myanmar and Sudan.[14]

As executives from HSBC appeared in the U.S. Senate, the bank’s head of compliance since 2002, David Bagley, resigned as he testified before the committee, commenting, “Despite the best efforts and intentions of many dedicated professionals, HSBC has fallen short of our own expectations and the expectations of our regulators.”[15] As Ed Vulliamy reported in the Observer, in May of 2012, a poor black man named Edward Dorsey Sr. was convicted of peddling 5.5 grams of crack cocaine in Washington D.C. and was given 10 years in jail. Meanwhile, just across the river from where Dorsey had committed his crime, executives from HSBC admitted before the U.S. Senate that they laundered billions in drug money, just as Wachovia had admitted to the previous year, with no one going to prison.[16] The lesson from this is clear: if you are poor, black, and are caught with a couple grams of crack-cocaine, you can expect to go to prison for several years (or in this case, a decade); but if you are rich, white, own a bank, and are caught laundering billions of dollars (or hundreds of billions of dollars) in drug money, you will be fined (but not enough to make such practices unprofitable), and may have to resign. Too big to fail is simply another way of saying “too big to jail.”

Of course, it’s not fair to put all the blame for international drug money-laundering on the shoulders of HSBC and Wachovia, as Bloomberg reported, Mexican drug cartels also funneled money through the Bank of America and even the banking branch of American Express, Banco Santander, and Citigroup.[17] Even the FBI has accused Bank of America of laundering Mexican drug cartel funds.[18] But it’s not just drug money that banks launder; all sorts of illicit funds are laundered through major banks, many of which have been fined or are now being investigated for their criminal activities, including JPMorgan, Standard Chartered, Credit Suisse, Lloyds, Barclays, ING, and the Royal Bank of Scotland, among others.[19] Another major Swiss bank, UBS, has been very consistent in committing fraud and engaging in various conspiracies, a great deal of which was committed against Americans, though the bank was given “conditional immunity” from the U.S. Department of Justice.[20]

Financial Fraud and the ‘Get Out of Jail Free Card’

The major banks of the world have been caught in conspiracies of ripping off small towns and cities across the United States, which allowed banks like JPMorgan Chase, GE Capital, UBS, Bank of America, Lehman Brothers, Wachovia, Bear Stearns, and others, to steal billions of dollars from schools, hospitals, libraries, and nursing homes from “virtually every state, district and territory in the United States,” according to a court settlement on the issue. The theft was done through the manipulation of the public bidding process, something that the Mafia has become experts in with regards to garbage and construction industry contracts. In short, the banking system actually functions like a Mafia cartel system, not to mention, taking money from the Mafia and cartels themselves.[21] Banks like JP Morgan Chase and Goldman Sachs engaged in bribery, fraud, and conspiracies which resulted in the bankruptcy of counties all across the United States.[22] Still, they continue to be ‘respected’ by the political class which refuses to punish them for their criminal activity, and instead, rewards them with bailouts and follows their instructions for policy.

Over the summer of 2012, another major banking scandal hit the headlines, regarding the manipulation of the London inter-bank lending rate known as the Libor. The Libor rate, explained the Economist, “determines the prices that people and corporations around the world pay for loans or receive for their savings,” as it is used as a benchmark for establishing payments on an $800 trillion derivatives market, covering everything from interest rate derivatives to mortgages. Essentially, the Libor is the interest rate at which banks lend to each other on the short term, and is established through an “honour system” of where 18 major banks report their daily rates, from which an average is calculated. That average becomes the Libor rate, and reverberates throughout the entire global economy, setting a benchmark for a massive amount of transactions in the global derivatives market. Whereas the derivatives market is a massive casino of unregulated speculation, the Libor scandal revealed the cartel that owns the casino.

The scandal began with Barclays, a 300-year old bank in Britain, revealing that several employees had been involved in rigging the Libor to suit their own needs. More banks quickly became implemented, and countries all over the world began opening investigations into this scandal and the role their own banks may have played in it. By early July, as many as 20 major banks were named in various investigations or lawsuits related to the rigging of the Libor.[23]

Among the major global banks which are being investigated by U.S. prosecutors are Barclays, Deutsche Bank, Citigroup, JPMorgan Chase, Royal Bank of Scotland, HSBC, UBS, Bank of America, Bank of Tokyo Mitsubishi, Credit Suisse, Lloyds Banking Group, Rabobank, Royal Bank of Canada, Société Générale, and others. Prosecutors in the U.S., U.K., Canada and Japan were investigating collusion between the major banks on the manipulation of the Libor. In June of 2012, Barclays paid a fine to US and UK authorities, admitting its culpability in the rigging with a $450 million settlement.[24] With information and documents pouring out, implicating further banks and institutions in the scandal, a general consensus was emerging that the Libor had been manipulated since at least 2005, though, as one former Morgan Stanley trader wrote in the Financial Times, the rigging had began as early as 1991, if not before. The British Banker’s Association was responsible for setting the Libor rate by polling roughly 18 major banks on their highest and lowest rates daily. Thus, rigging by one bank would require the co-operating of at least nine other banks in purposely manipulating their rates in order to have any effect upon the Libor. Douglas Keenan, the former Morgan Stanley trader, wrote that, “it seems the misreporting of Libor rates may have been common practice since at least 1991.”[25]

Rolf Majcen, the head of a hedge fund called FTC Capital told Der Spiegel that, “the Libor manipulation is presumably the biggest financial scandal ever.” As regulators were using words like “organized fraud” and “banksters” to describe the growing scandal, it was becoming common to refer to the major banks as functioning like a “cartel” or “mafia.”[26] The CEO of Barclays, Bob Diamond, resigned in disgrace, as did Marcus Agius, the Chairman of Barclays (who also serves as a director on the board of BBC, and is married into the Rothschild banking dynasty). The “cartel” manipulated the Libor for a great number of reasons, among them, to appear to be in better health by rigging their credit ratings upwards.[27] The Business Insider referred to the Libor rigging as a “criminal conspiracy” from the start, essentially designed to promote manipulation as the Libor was determined by an “honor system” for banks to properly report their rates.[28] Imagine giving a pile of credit cards to a group of credit card fraud convicts and establishing an “honour system.” Could one truly be surprised if it didn’t work out? Well, the Libor scandal is effectively based upon the same logic, except that the repercussions are global in scope.

Traders at the Royal Bank of Scotland referenced, in internal emails, to their participation in operating a “cartel” that made “amazing” amounts of money through the manipulation of interest rates, with a former senior trader at RBS writing that managers at the bank had “condoned collusion.” The same trader, who was later hung out to dry by RBS as a scapegoat, wrote in an email to a trader at Deutsche Bank that, “It is a cartel now in London,” where the Libor is established.[29]

The cartel, however, did not simply include the major banks, but also required the cooperation or at least negligence of regulators and central banks. Documents released by the Federal Reserve Bank of New York and the Bank of England show correspondence between then-President of the NY Fed Timothy Geithner (who is now Obama’s Treasury Secretary) and Bank of England Governor Mervyn King discussing how Barclays was manipulating the Libor rates during the 2008 financial crisis. While the NY Fed corresponded with both the Bank of England and Barclays itself on the acknowledgment of interest rate manipulation, it never told the bank to stop the rigging practice. An official at Barclays even informed the NYFed in 2008 that the bank was under-reporting the rate at which it could borrow from other banks so that Barclays could “avoid the stigma” of appearing to be weaker than its peers, adding that “other participating banks were also under-reporting their Libor submissions.”[30]

A Barclays employee told the New York Fed in an April 2008 phone call that, “We know that we’re not posting um, an honest Libor… and yet we are doing it, because, um, if we didn’t do it, it draws, um, unwanted attention on ourselves.” The New York Fed official replied: “You have to accept it… I understand. Despite it’s against what you would like to do. I understand completely.” Several months later, a Barclays employee told a New York Fed official that the Libor rates were still “absolute rubbish.”[31]

While the New York Fed expressed sympathy for the poor and helpless global banks need to engage in fraud and interest rate manipulation in order to lie and appear to be healthier than it was, the Bank of England went a step further, when Paul Tucker, the head of markets at the BoE wrote a note to Barclays CEO Bob Diamond in 2008 suggesting that Barclays lower its Libor rate, thus encouraging the rigging itself, instead of just expressing sympathy for the “need” to commit fraud.[32]

The main British banking lobby group, the British Banker’s Association (BBA), which was responsible for overseeing the Libor rate process (no conflict of interest there, right?), was, in late September of 2012, stripped of its right to oversee the Libor, to be replaced with a formal regulator. The BBA’s “oversight” of Libor dates back to 1984, when the City of London (Britain’s Wall Street) had begun an experiment to establish a new way of setting interest rates, asking the banking lobby group to set the rate in 1986 when the Libor began.[33] The BBA’s Foreign Exchange and Money Markets Committee is responsible for setting the Libor, and they meet every two months to review the process in secret without any minutes being published, and even the membership of the Committee is kept a secret. Spokespersons at Credit Suisse, Royal Bank of Scotland, and UBS refused to comment on whether they had any representatives on the committee, while Barclays, Deutsche Bank, HSBC, Bank of America and Citigroup didn’t even respond to emailed inquiries about their involvement with the committee, as Bloomberg reported. A British regulator, in the understatement of the century, stated, “There is an apparent lack of transparency,” adding that the BBA’s committee “doesn’t appear to be sufficiently open and transparent to provide the necessary degree of accountability to firms and markets with a direct interest in being assured of the integrity of Libor.”[34] When the fox guards the henhouse, it takes a great deal of stupidity to be “surprised” when some hens go missing.

In an April 2008 meeting with officials at the Bank of England, Angela Knight, the head of the British Banker’s Association, suggested that the BBA perhaps should no longer be responsible for oversight of “the world’s most important number,” which had become too big for the BBA to manage. No one at the meeting cared enough to do anything about it, however, and so nothing changed.[35] Where was the incentive to change the system, after all? Yes, massive fraud was taking place, and this was well understood by the banks committing it, as well as the regulators and central banks overseeing it. But on the plus side, everyone was getting away with it. So indeed, there was no incentive to change the system. From the point of view of those managing it, the Libor was functioning as it should. A cartel was established because a cartel was desired. The fact that it was all highly illegal, fraudulent, and immoral was – and is – beside the point. Mexican drug cartels do not worry about the legality of their operations because they are, by definition, illegal. They worry simply about getting away with their illegal operations. The same can be said for the global banking cartel. So long as they get away with criminal cartel operations, there is no incentive to change the system, and instead, there is only an incentive to expand and further entrench the cartel’s operations.

Canada’s antitrust regulator began an investigation into the “international cartel” of banks rigging the Libor, focusing on the role played by banks such as JP Morgan Chase, Royal bank of Scotland, Deutsche Bank, HSBC, and Citigroup, among others. A law professor at the University of Toronto who was hired by the regulator to study the case commented that, “international cartels are of a significant concern for the Canadian economy.”[36] We have truly reached an impressive circumstance when the actual regulators of the banks refer to the banking system as an “international cartel.”

A lawsuit was being filed by several homeowners in the U.S. who were attempting to sue some of the world’s largest banks for fraud, as the Libor manipulation sparked increases on their mortgages, resulting in illegal profits for banks. The class action lawsuit filed in New York in October of 2012 accused banks such as Bank of America, Citigroup, Barclays, UBS, JPMorgan Chase, Deutsche Bank and others of fraud over a period of ten years.[37] For U.S. states and municipalities that bought interest-rate swaps before the financial crisis, the Libor rigging was poised to more than double their losses. Banks had sold roughly $500 billion of interest-rate swaps (in the derivatives market) to municipalities before the financial crisis, with roughly $200 billion of those swaps tied to the Libor. As one legal expert who studies derivatives told Bloomberg, “Almost all interest-rate swaps begin with Libor.” This prompted several states in the U.S. to begin their own investigations into how the Libor-rigging may have negatively affected them.[38]

Punishing the World’s Population into Poverty: Life Under the Global Cartel

While the global cartel of criminal banks rig rates, launder drug money, fund terrorists, engage in bribery, fraud and demand multi-trillion dollar bailouts from our governments (effectively selling their bad debts to the public), and then give themselves massive bonuses, they are also demanding – through what is called “market discipline” – that our governments deal with our debts by undertaking policies of “austerity” and “structural reform,” which are euphemisms for impoverishment and exploitation. Thus, after the cartel helped create a massive financial crisis, and after our governments rewarded them for their criminal activity, the cartel now demands that our governments punish their populations into poverty and open their economies, resources and labour up for cheap and easy exploitation by banks and multinational corporations. This is referred to as the “solution” for getting out of the ‘Great Recession,’ and which is sure to great a Great Depression. Greece is now two and a half years into its “austerity” and “adjustment” reforms, with its debt growing as a result, poverty exploding, misery spreading, health, education, welfare rapidly declining, suicide rates and hunger increasing, as the Greek people are subjected to a program of “social genocide.” Market discipline demands austerity and adjustment, or in other words, class warfare creates poverty and exploitation.[39]

Countries that refuse to implement programs of austerity and adjustment are subjected to financial terrorism by the “international cartel,” as financial markets engage in “market discipline” by using the derivatives market to speculate against that particular country’s ability to pay its interest or debt, thus making its credit ratings decrease and borrowing rates increase, plunging the country into a deeper crisis. In any other scenario, this is called terrorism or in the very least, extortion: do what I say or I will punish you and destroy you. This is what former U.S. Treasury official Roger Altman referred to in the Financial Times as the new “global supra-government” who can “force austerity, banking bail-outs and other major policy changes,” and thus, “have become the most powerful force on earth.”[40] Countries, regional, and international organizations all bow down to the dictates of the “international cartel” of the “global supra-government,” and so countries like Greece, Spain, Ireland, Italy, and Portugal, organizations like the European Union, European Central Bank, powerful states like Germany, France, Britain, and the U.S., and other international organizations like the IMF, Bank for International Settlements, and the OECD all demand and implement austerity measures and structural “reforms.” Either they follow the orders of the “cartel” – which we commonly refer to as the “invisible hand” of the “free market – or they directly challenge “the most powerful force on earth.” In the global economy, a small country like Greece standing up to the “global supra-government” is much like a small Greek restaurant trying to stand up to the city Mafia.

In the U.S., states that were defrauded in the billions of dollars by the cartel, and took on major debts as a result, are now the harbingers of austerity in America. Beginning in 2010, roughly 20 states across the U.S. began implementing austerity measures, and have been doing much worse economically as a result (the predicted effect of austerity). Even the institutions which are the most militant in demanding austerity measures, such as the European Union and the IMF, have acknowledged in recent reports that countries which pursue austerity to supposedly reduce their debts end up getting much larger debts as a result, and that such measures are actually extremely damaging to economies. This is not news, of course, since there is a rather large sample of data from the past 30 years of forced austerity and adjustment measures across Africa, Asia, and Latin America (at the behest of the IMF, World Bank, western governments, and of course, the “cartel”), which show quite clearly the effect that austerity and adjustment have in rapidly expanding poverty and facilitating exploitation. As austerity is hitting several U.S. states, jobs are lost and poverty increases with debt, standards of living decline and the recession deepens into a depression. The population is essentially punished for the crimes of the global cartel, while public employees, pensioners, welfare recipients, teachers and workers get the blame.[41]

In late October of 2012, the CEOs of 80 major corporations and banks in the United States banded together (as any well functioning cartel does) in order to pressure Congress, regardless of who the next President is, to pursue an agenda of harsh austerity measures and structural reforms. In a statement to Congress signed by the 80 CEOs, the American branch of the global cartel (its most significant branch), demanded that policies be enacted immediately, though implemented gradually, “to give Americans time to prepare for the changes in the federal budget.” Among the demands are to reform Medicare and Medicaid, healthcare, Social Security, increase taxes, and generally reduce spending. All of this amounts to a large federal program of austerity, to cut social spending and increase taxes on the population, thus impoverishing the population. This, in the words of the letter to Congress, “must be bipartisan and reforms to all areas of the budget should be included.”[42] Among the signatories to the letter were the CEOs of AT&T, Bank of America, BlackRock, Boeing, Caterpillar, Dow Chemical Company, General Electric, Goldman Sachs, JPMorgan Chase, Merck, Microsoft, Motorola, Time Warner, and Verizon, among many others.[43]

This followed roughly one week after a group of 15 major global bank CEOs sent a letter to President Obama and the U.S. Congress lecturing the U.S. political class on “moral authority,” giving their formal orders to the U.S. political establishment, that regardless of Democratic or Republican administrations, they are losing patience with the democratic apparatus of the state, and warned: “The solvency, productive capacity, and stability of the United States, as well as its moral authority as a global leader, require that its fiscal challenges be credibly met.” Among the signatories to the letter were the CEOs of Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo. The Wall Street Journal, reporting on this letter, commented that even for “a dying democracy, it’s embarrassing enough to see bankers telling our government what to do,” but in this letter, “we even see foreign bankers telling our government what to do,” as other CEOs of the global cartel signed the letter, from banks such as UBS, Credit Suisse, and Deutsche Bank. The “consequences of inaction” on the U.S. debt, read the letter, “would be very grave.” In other words, the U.S. political class has received a threat from the global cartel that it is now time to implement austerity and adjustment measures, or to face the consequences of financial terrorism.[44]

Hiding the Loot: The Offshore Economy in the Age of the Global Plutonomy

While people are being forced into poverty to pay off the bad debts of the “super-entity” global banking cartel of drug-money laundering banks which make up the “global supra-government,” the richest people in the world have been hiding their wealth in offshore tax havens, and of course, with the help of those same banks. James Henry, a former chief economist at McKinsey, a major global consultancy, published a major report on tax havens in July of 2012 for the Tax Justice Network, compiling data from the Bank for International Settlements (BIS), the IMF and other private sector entities which revealed that the world’s superrich have hidden between $21 and $32 trillion offshore to avoid taxation. Henry stated: “This offshore economy is large enough to have a major impact on estimates of inequality of wealth and income; on estimates of national income and debt ratios; and – most importantly – to have very significant negative impacts on the domestic tax bases of ‘source’ countries.” John Christensen of the Tax Justice Network commented that, “Inequality is much, much worse than official statistics show, but politicians are still relying on trickle-down to transfer wealth to poorer people… This new data shows the exact opposite has happened: for three decades extraordinary wealth has been cascading into the offshore accounts of a tiny number of super-rich.” Roughly 92,000 of the super-rich, globally, hold at least $10 trillion in offshore wealth. In many cases, the worth of these offshore assets far exceeds the debts of the countries that they flow from, the same debts that are used to keep these countries and their populations in poverty and a constant state of exploitation.[45]

The estimated total of hidden offshore wealth amounts to more than the combined GDP of the United States and Japan, hidden in secretive financial jurisdictions like Switzerland and the Cayman Islands. The process of hiding this wealth is largely facilitated by the major global banks, which compete with one another to attract the assets of the world’s super-rich. James Henry explained that the wealth of the world’s super-rich is “protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy;” more of that “free market” magic. The top ten banks in the world, which include UBS and Credit Suisse (based in Switzerland) as well as Goldman Sachs in the United States, collectively managed roughly $6.4 trillion in offshore accounts for 2010 alone. As the report revealed, “for many developing countries the cumulative value of the capital that has flowed out of their economies since the 1970s would be more than enough to pay off their debts to the rest of the world,” debts which are largely illegitimate as it stands. This trend is exacerbated in the oil-rich states of the world such as Nigeria, Russia, and Saudi Arabia. The report stated: “The problem here is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments.” With roughly half of the world’s offshore wealth belonging to the top 92,000 richest individuals, they represent the top 0.001%, a far more extreme global disparity than that which is invoked by the Occupy movement’s 1% paradigm. Henry commented: “The very existence of the global offshore industry, and the tax-free status of the enormous sums invested by their wealthy clients, is predicated on secrecy.”[46] Remember, “free market” means that those who own the market (the global cartel), and free to do anything they please.

A 2005 report from Citigroup coined the term “plutonomy,” to describe countries “where economic growth is powered by and largely consumed by the wealthy few,” and specifically identified the U.K., Canada, Australia, and the United States as four plutonomies. Keeping in mind that the report was published three years before the onset of the financial crisis in 2008, the Citigroup report stated: “Asset booms, a rising profit share and favourable treatment by market-friendly governments have allowed the rich to prosper and become a greater share of the economy in the plutonomy countries,” and that, “the rich are in great shape, financially.”[47] It’s only everyone else that is suffering, which by definition, is a “well functioning” economy. As the Federal Reserve reported, “the nation’s top 1% of households own more than half the nation’s stocks,” and “they also control more than $16 trillion in wealth — more than the bottom 90%.” The term ‘Plutonomy’ is specifically used to “describe a country that is defined by massive income and wealth inequality,” and that they have three basic characteristics, according to the Citigroup report:

1. They are all created by “disruptive technology-driven productivity gains, creative financial innovation, capitalist friendly cooperative governments, immigrants…the rule of law and patenting inventions. Often these wealth waves involve great complexity exploited best by the rich and educated of the time.”

2. There is no “average” consumer in Plutonomies. There is only the rich “and everyone else.” The rich account for a disproportionate chunk of the economy, while the non-rich account for “surprisingly small bites of the national pie.” [Citigroup strategist Ajay] Kapur estimates that in 2005, the richest 20% may have been responsible for 60% of total spending.

3. Plutonomies are likely to grow in the future, fed by capitalist-friendly governments, more technology-driven productivity and globalization.[48]

Kapur, who authored the Citigroup report, stated that there were also risks to the Plutonomy, “including war, inflation, financial crises, the end of the technological revolution and populist political pressure,” yet, “the rich are likely to keep getting even richer, and enjoy an even greater share of the wealth pie over the coming years.”[49]

In February of 2011, Ajay Kapur, the author of the Citigroup report who is now with Deutsche Bank, gave an interview in which he explained that, “the world economy is even more dependent on the spending and consumption of the rich,” and that, “Plutonomist consumption is almost 10 times as volatile that of the average consumer.” He further explained that increased debt levels are a sign of plutonomies:

We have an economy today where a large fraction of the population doesn’t pay federal income taxes and, because of demand for entitlements, we have a system of massive representation without taxation. On the other hand, you have plutonomists who protect their turf and the taxation amounts are not enough to pay for everyone’s demand. So I’ve come to the conclusion that budget deficits are biased toward getting bigger and bigger. Budget deficits are going to become a manifestation of a plutonomy.[50]

The plutonomy is largely characterized by a lack of a consuming and vibrant middle class. This is a trend that has been accelerating for several decades, particularly in North America and Britain, where the middle class population is heavily indebted. The middle class has existed as a consumer class, keeping the lower class submissive, and keeping the upper class secure and wealthy by consuming their products, produced with the labour of the lower class.

The most advanced plutonomies in the world are the most advanced industrial and technological nations, where the major corporations and banks are highly subsidized and protected by the state, as is typical for a state-capitalist society. While the industrial and rich northern state-capitalist societies were able to industrialize and grow rich through highly protectionist measures, the poor south of the world (Africa, Asia, Latin America) were subjected to “free market” policies which opened up their economies to be exploited and plundered by the rich northern nations. No country has ever become an industrial power by implementing free market policies, but rather, by doing the exact opposite: heavy subsidies and state protection for key industries, technologies, and corporate entities.

While the ‘Third World’ was forced to implement “free market” policies in order to get loans, the predictable result took place: mass impoverishment and exploitation. The ‘Third World’ states were run by tiny elites who dominated the countries politically and economically, and who hid their stolen wealth in foreign banks and offshore tax havens. Now, in the midst of the global economic crisis which has been ravaging the world for the past four years, the rich northern countries are themselves implementing the same “free market” policies, though designed to subject their populations to “market discipline” while maintaining – and in fact increasing – the protectionist and subsidized policies for the multinational corporations and banks. It is important to note that “market discipline” and actual “free market” policies are exclusively designed for the general population, not the elite. Workers, students, the elderly, the poor and the many are to be subjected to “market discipline” while the banks and multinational corporations continue to be heavily subsidized (as the largest national welfare recipients) and protected by the state. Thus, just as our banks and corporations have plundered the Third World with rapacious delight over the past three decades, now they will be able to do the same to the populations of the rich nations themselves. The state will transform, as it did in the ‘Third World’, into a typically totalitarian institution which is responsible for protecting the super-rich and controlling, oppressing, or, in extreme cases of resistance, eliminating the ‘problem populations’ (i.e., the people).

Welcome to the global plutonomy in the age of austerity, the result of living under – and tolerating – a global “super-entity” corporate-financial cartel. Truly, one must pause and, if only for a moment, appreciate the ability of this global cartel to function so effectively in spite of its blatant criminal activities, and face almost absolutely no repercussions. Something truly is wrong with a society when a poor black man caught with 5 grams of crack-cocaine goes to prison for ten years, while rich white bank executives admit to laundering billions of dollars in drug money and receive only a fine and a slap on the wrist (maybe).

The lesson is clear: if you are a thief, steal by the billions or trillions, and then no one can do anything about it. If you are in the drug trade: handle only billions (or hundreds of billions) in drug money, and then you will get away with it. If you don’t want to pay taxes, be a member of the top o.oo1% of the world’s super-rich and hide your billions in offshore tax-free accounts. If you want more, create a global economic crisis, demand to be saved by the state to the tune of tens of trillions of dollars, and then, tell the state to punish their populations into poverty in order to pay for your mistakes.

In other words, if you want to indulge your criminal fantasies, lie and steal, profit from death and drugs, dominate and demand, be king and command, become the highly-functioning socially-acceptable sociopath you always knew you could be… think big. Think BANK. Serial killers, bank robbers and drug dealers go to jail; bankers get bailouts and get an unlimited insurance policy called “too big to fail.”

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]       Andy Coghlan and Debora MacKenzie, “Revealed – the capitalist network that runs the world,” New Scientist, 24 October 2011:

http://www.newscientist.com/article/mg21228354.500-revealed–the-capitalist-network-that-runs-the-world.html

[2]       Ibid.

[3]       Ibid.

[4]       David J. Lynch, “Banks Seen Dangerous Defying Obama’s Too-Big-to-Fail Move,” Bloomberg, 16 April 2012:

http://www.bloomberg.com/news/2012-04-16/obama-bid-to-end-too-big-to-fail-undercut-as-banks-grow.html

[5]       Dean Baker, “The eurozone crisis is not about market discipline,” Al-Jazeera, 18 December 2011:

http://www.aljazeera.com/indepth/opinion/2011/12/2011121874651469307.html

[6]       Roger Altman, “We need not fret over omnipotent markets,” The Financial Times, 1 December 2011:

http://www.ft.com/intl/cms/s/0/890161ac-1b69-11e1-85f8-00144feabdc0.html#axzz1fnNHC8YP

[7]       Roger Altman, “We need not fret over omnipotent markets,” The Financial Times, 1 December 2011:

http://www.ft.com/intl/cms/s/0/890161ac-1b69-11e1-85f8-00144feabdc0.html#axzz1fnNHC8YP

[8]       Rajeev Syal, “Drug money saved banks in global crisis, claims UN advisor,” The Observer, 13 December 2009:

http://www.guardian.co.uk/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims

[9]       Ed Vulliamy, “How a big US bank laundered billions from Mexico’s murderous drug gangs,” The Observer, 3 April 2011:

http://www.guardian.co.uk/world/2011/apr/03/us-bank-mexico-drug-gangs

[10]     Ibid.

[11]     Ed Vulliamy, “Global banks are the financial services wing of the drug cartels,” The Observer, 21 July 2012:

http://www.guardian.co.uk/world/2012/jul/21/drug-cartels-banks-hsbc-money-laundering

[12]     John Paul Rathbone, “Money laundering: Taken to the cleaners,” 20 July 2012:

http://www.ft.com/intl/cms/s/0/702a64a6-d25e-11e1-ac21-00144feabdc0.html#axzz2ALt54B7K

[13]     Agustino Fontevecchia, “HSBC Helped Terrorists, Iran, Mexican Drug Cartels Launder Money, Senate Report Says,” Forbes, 16 July 2012:

http://www.forbes.com/sites/afontevecchia/2012/07/16/hsbc-helped-terrorists-iran-mexican-drug-cartels-launder-money-senate-report-says/

[14]     Roberto Saviano, “Where the Mob Keeps its Money,” The New York Times, 25 August 2012:

http://www.nytimes.com/2012/08/26/opinion/sunday/where-the-mob-keeps-its-money.html?pagewanted=all&_r=0

[15]     Dominic Rushe, “HSBC ‘sorry’ for aiding Mexican drugs lords, rogue states and terrorists,” The Guardian, 17 July 2012:

http://www.guardian.co.uk/business/2012/jul/17/hsbc-executive-resigns-senate

[16]     Ed Vulliamy, “Global banks are the financial services wing of the drug cartels,” The Observer, 21 July 2012:

http://www.guardian.co.uk/world/2012/jul/21/drug-cartels-banks-hsbc-money-laundering

[17]     Michael Smith, “Banks Financing Mexico Gangs Admitted in Wells Fargo Deal,” Bloomberg, 29 June 2010:

http://www.bloomberg.com/news/2010-06-29/banks-financing-mexico-s-drug-cartels-admitted-in-wells-fargo-s-u-s-deal.html

[18]     Alexander Eichler, “Mexican Drug Cartel Laundered Money Through BofA, FBI Alleges,” The Huffington Post, 9 June 2012:

http://www.huffingtonpost.com/2012/07/09/los-zetas-laundered-money-bank-america_n_1658943.html

[19]     Jessica Silver-Greenberg and Edward Wyatt, “In Laundering Case, a Lax Banking Law Obscured Money Flow,” The New York Times, 8 August 2012:

http://www.nytimes.com/2012/08/09/business/how-a-lax-banking-law-obscured-money-flow.html?pagewanted=all;

Jessica Silver-Greenberg and Ben Protess, “

Money-Laundering Inquiry Is Said to Aim at U.S. Banks,” The New York Times, 14 September 2012:

http://www.nytimes.com/2012/09/15/business/money-laundering-inquiry-said-to-target-us-banks.html?pagewanted=all&_r=0

[20]     James B. Stewart, “For UBS, a Record of Averting Prosecution,” The New York Times, 20 July 2012:

http://www.nytimes.com/2012/07/21/business/ubss-track-record-of-averting-prosecution-common-sense.html?pagewanted=all

[21]     Matt Taibbi, “The Scam Wall Street Learned From the Mafia,” Rolling Stone, 21 June 2012:

http://www.rollingstone.com/politics/news/the-scam-wall-street-learned-from-the-mafia-20120620

[22]     William D. Cohan, “How Wall Street Scams Counties Into Bankruptcy,” Bloomberg, 1 July 2012:

http://www.bloomberg.com/news/2012-07-01/how-wall-street-scams-counties-into-bankruptcy.html

[23]     “The Libor Scandal: The Rotten Heart of Finance,” The Economist, 7 July 2012:

http://www.economist.com/node/21558281

[24]     Shahien Nasiripour, “Nine more banks added to Libor probe,” The Financial Times, 26 October 2012:

http://www.ft.com/intl/cms/s/0/6f4e7960-1f1a-11e2-be82-00144feabdc0.html#axzz2ARAog5NE

[25]     Douglas Keenan, “My thwarted attempt to tell of Libor shenanigans,” The Financial Times, 26 July 2012:

http://www.ft.com/intl/cms/s/0/dc5f49c2-d67b-11e1-ba60-00144feabdc0.html#axzz2ARAog5NE

[26]     “The Cartel: Behind the Scenes in the Libor Interest Rate Scandal,” Der Spiegel, 1 August 2012:

http://www.spiegel.de/international/business/the-libor-scandal-could-cost-leading-global-banks-billions-a-847453.html

[27]     Matt Taibbi, “Why is Nobody Freaking Out About the LIBOR Banking Scandal?” Rolling Stone, 3 July 2012:

http://www.rollingstone.com/politics/blogs/taibblog/why-is-nobody-freaking-out-about-the-libor-banking-scandal-20120703

[28]     Raúl Ilargi Meijer, “LIBOR Was A Criminal Conspiracy From The Start,” The Business Insider, 11 July 2012:

http://www.businessinsider.com/libor-was-a-criminal-conspiracy-from-the-start-2012-7

[29]     Steven Swinford and Harry Wilson, “RBS traders boasted of Libor ‘cartel’,” The Telegraph, 26 September 2012:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9568087/RBS-traders-boasted-of-Libor-cartel.html

[30]     Jill Treanor and Dominic Rushe, “Timothy Geithner and Mervyn King discussed Libor worries in 2008,” The Guardian, 13 July 2012:

http://www.guardian.co.uk/business/2012/jul/13/tim-geithner-mervyn-king-libor

[31]     Mark Gongloff, “New York Fed’s Libor Documents Reveal Cozy Relationship Between Regulators, Banks,” The Huffington Post, 13 July 2012:

http://www.huffingtonpost.com/2012/07/13/new-york-fed-libor-documents_n_1671524.html

[32]     Chris Giles, “Libor scandal puts BoE in line of fire,” The Financial Times, 17 July 2012:

http://www.ft.com/intl/cms/s/0/68605a86-d02a-11e1-bcaa-00144feabdc0.html#axzz2ARAog5NE

[33]     Jill Treanor, “British Bankers’ Association to be stripped of Libor rate-setting role,” The Guardian, 25 September 2012:

http://www.guardian.co.uk/business/2012/sep/25/bba-libor-setting-role-stripped-banks

[34]     Liam Vaughan, “Secret Libor Committee Clings to Anonymity Following Scandal,” Bloomberg, 21 August 2012:

http://www.bloomberg.com/news/2012-08-20/secret-libor-committee-clings-to-anonymity-after-rigging-scandal.html

[35]     David Enrich and Max Colchester, “Before Scandal, Clash Over Control of Libor,” The Wall Street Journal, 11 September 2012:

http://online.wsj.com/article/SB10000872396390443847404577631404235329424.html

[36]     Andrew Mayeda, “Canada Regulator Says Has Power to Probe Libor ‘Cartel’,” Bloomberg, 22 June 2012:

http://www.bloomberg.com/news/2012-06-22/canada-regulator-says-has-power-to-probe-libor-cartel-.html

[37]     Halah Touryalai, “Banks Rigged Libor To Inflate Adjustable-Rate Mortgages: Lawsuit,” Forbes, 15 October 2012:

http://www.forbes.com/sites/halahtouryalai/2012/10/15/banks-rigged-libor-to-inflate-adjustable-rate-mortgages-lawsuit/

[38]     Darrell Preston, “Rigged Libor Hits States-Localities With $6 Billion: Muni Credit,” Bloomberg, 9 October 2012:

http://www.bloomberg.com/news/2012-10-09/rigged-libor-hits-states-localities-with-6-billion-muni-credit.html

[39]     Andrew Gavin Marshall, “Austerity, Adjustment, and Social Genocide: Political Language and the European Debt Crisis,” Andrewgavinmarshall.com, 24 July 2012:

http://andrewgavinmarshall.com/2012/07/24/austerity-adjustment-and-social-genocide-political-language-and-the-european-debt-crisis/

[40]     Roger Altman, “We need not fret over omnipotent markets,” The Financial Times, 1 December 2011:

http://www.ft.com/intl/cms/s/0/890161ac-1b69-11e1-85f8-00144feabdc0.html#axzz1fnNHC8YP

[41]     Ben Polak and Peter K. Schott, America’s Hidden Austerity Program,” The New York Times, 11 June 2012:

http://economix.blogs.nytimes.com/2012/06/11/americas-hidden-austerity-program/;

Jason Cherkis, “A Thousand Cuts: Austerity Measures Devastate Communities Around The World,” The Huffington Post, 17 July 2012:

http://www.huffingtonpost.com/2012/07/12/austerity-measures-a-thousand-cuts_n_1666309.html;

Editorial, “The Austerity Trap,” The New York Times, 23 October 2012:

http://www.nytimes.com/2012/10/24/opinion/the-austerity-trap.html?_r=0;

Derek Thompson, “American Austerity: Why the States Cutting Spending Are Doing Worse,” The Atlantic, 21 June 2012:

http://www.theatlantic.com/business/archive/2012/06/american-austerity-why-the-states-cutting-spending-are-doing-worse/258825/

[42]     “CEOs Deficit Manifesto,” The Wall Street Journal, 25 October 2012:

http://online.wsj.com/article/SB10001424052970203937004578076254182569318.html?mod=googlenews_wsj

[43]     “Executives Who Signed the Fix the Debt Declaration,” The Wall Street Journal, 25 October 2012:

http://online.wsj.com/article/SB10001424052970203897404578077251928040508.html

[44]     Al Lewis, “Bankers Face the Abyss,” The Wall Street Journal, 21 October 2012:

http://online.wsj.com/article/SB10000872396390444734804578064840879262594.html?mod=googlenews_wsj

[45]     Heather Stewart, “Wealth doesn’t trickle down – it just floods offshore, research reveals,” The Observer, 21 July 2012:

http://www.guardian.co.uk/business/2012/jul/21/offshore-wealth-global-economy-tax-havens

[46]     Heather Stewart, “£13tn hoard hidden from taxman by global elite,” The Observer, 21 July 2012:

http://www.guardian.co.uk/business/2012/jul/21/global-elite-tax-offshore-economy

[47]     We’re living in a plutonomy, The Telegraph, 2 April 2006:

http://www.telegraph.co.uk/finance/2935809/Were-living-in-a-plutonomy.html

[48]     Robert Frank, Plutonomics, The Wall Street Journal, 8 January 2007:

http://blogs.wsj.com/wealth/2007/01/08/plutonomics/

[49]     Ibid.

[50]     Gus Lubin, Deutsche Bank Says The ‘Global Plutonomy’ Is Stronger Than Ever, And That Means 10X More Volatility, Business Insider, 17 February 2011:

http://www.businessinsider.com/ajay-kapur-plutonomy-2011-2

 

“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

Austerity, Adjustment, and Social Genocide: Political Language and the European Debt Crisis

Austerity, Adjustment, and Social Genocide: Political Language and the European Debt Crisis

By: Andrew Gavin Marshall

Angela Merkel, Jose Manuel Barroso, and Mario Monti: Europe’s champions of austerity and adjustment

 

The following is a sample analysis from my upcoming book on the global economic crisis and global resistance movements. Please consider donating to The People’s Book Project to help support the effort to finish this book.

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

Political language functions through euphemism, by employing soft-sounding or simply meaningless words to describe otherwise monstrous and vicious policies and objectives. In the European debt crisis, political language employed by politicians, economists, technocrats and bankers is designed to make policies which create poverty and exploitation appear to be logical and reasonable. The language employed includes the words and phrases: fiscal austerity/consolidation, structural adjustment/reform, labour flexibility, competitiveness, and growth. To understand political language, one must translate it. This requires four steps: first, you look at the rhetoric itself as inherently meaningless; second, you examine the policies that are taken; third, you look at the effects of the policies. Finally, if the effects do not match the rhetoric, yet the same policies are pursued time and time again, one must translate the effects as the true meaning of the rhetoric. Thus, the rhetoric has meaning, but not at face value.

The debt crisis followed the 2007-2009 financial crisis, erupting first with Greece, then Ireland, Portugal, Italy and Spain, and threatens even to spread elsewhere. Of those mentioned, only Italy has not received a bailout. Though whether “bailed out” or not, Europe’s people are being forced to undergo “austerity measures,” a political-economic euphemism for cutting social spending, welfare, social services, public sector jobs, and increased taxes. The aim, they are told, is to get their “fiscal house in order.” The people protest, and go out into the streets. The state responds by meeting the people with riot police, batons, tear gas, pepper spray, and rubber bullets. This is called “restoring order.”

The effects of austerity are to increase poverty, unemployment, and misery. People are fired from the public sector, welfare and social benefits are reduced or lost, retirement ages are increased to keep people in the work force and off the pension system, which is also cut. Cuts to health care and education take a social and physical toll; as poverty increases the need for better health care, that very system is dismantled when it is needed most. Taxes are increased, and wages are decreased. People are deeper in debt, and destined for destitution. The objective, we are told, is to reduce public spending so that the government can reduce its deficit (the yearly debt).

In Europe, austerity has been the siren call of all the agencies, organizations, and individuals who represent the interests of elite financial control. In March 2010, the OECD (Organisation for Economic Co-operation and Development) suggested Europe undertake a program of austerity lasting for no less than six years from 2011 to 2017, which the Financial Times referred to as “highly sensible.” In April of 2010, the Bank for International Settlements (BIS) – the central bank to the world’s central banks – called for European nations to begin implementing austerity measures. In June of 2010, the G20 finance ministers agreed: it was time to enter the age of austerity! German Chancellor Angela Merkel, the European midwife of austerity, set an example for the EU by imposing austerity measures at home in Germany. The G20 leaders met and agreed that the time for stimulus had come to an end, and the time for austerity poverty was at hand. This was of course endorsed by the unelected technocratic president of the European Commission, José Manuel Barroso. The unelected president of the European Council, Herman Van Rompuy, also agreed, explaining in his unrelenting economic wisdom that austerity “has no real effect on economic growth.” Jean-Claude Trichet, president of the European Central Bank (ECB), also hopped on the austerity train, writing in the Financial Times that, “now is the time to restore fiscal sustainability.” Jaime Caruana, General Manager of the Bank for International Settlements (BIS) stated in June of 2011 that the need for austerity was “more urgent” than ever, while BIS chairman, Christian Noyer, also the governor of the Bank of France (and board member of the ECB), stated that apart from austerity, “there’s no solution possible” for Greece.

In April of 2011, the two president of the EU – Barroso and Van Rompuy – felt it was necessary to clarify (just in case people were getting the wrong idea), that: “Some people fear this work is about dismantling the welfare states and social protection… Not at all … It is to save these fundamental aspects of the European model… We want to make sure that our economies are competitive enough to create jobs and to sustain the welfare of all our citizens and that’s what our work is about.” However, the following year, the new European Central Bank president, Mario Draghi (former governor of the Bank of Italy), stated in an interview with the Wall Street Journal that, “there was no alternative to fiscal consolidation,” meaning austerity, and that Europe’s social contract was “obsolete” and the social model was “already gone.” However, Draghi explained, it was now necessary to promote “growth,” adding, “and that’s why structural reforms are so important.”

Thus, “austerity packages” will then prepare the state and economy for the next phase, which, we are told, would make the country “competitive” and create “growth.” This is how the country would pay off its total debt, which deficits merely add to. This process is called “structural adjustment” (or “structural reform”) and it requires “competitiveness” to facilitate “growth.”

As we can loosely translate “austerity” into poverty, we may translate “structural adjustment” into exploitation. After all, nothing goes better with poverty than exploitation! How does “structural adjustment” become exploitation? Well through competitiveness and growth, of course! Structural adjustment means that the state liberalizes the economy, so everything is deregulated, all state-owned assets are privatized, like roads, hospitals, airports, rivers, water systems, minerals, resources, state-owned companies, services, etc. This, as the story goes, will encourage “investment” in the country when it “needs it most.” This idea suggests that foreign banks and corporations will enter the “market” and purchase all these wonderful things, explaining that they work better when they are “competitive” in the “free market,” and then with their new investments, they will create new industries, employ local people, revive the economy, and with the “trickle down” from the most productive and profitable, all of society will rise in living standards and opportunity.

But first, other “structural adjustment” measures must be simultaneously employed. One of the most important ones is called “labour flexibility.” This means that if you have protected wages, hours, benefits, pensions… well, now you don’t! If you are a member of a union, or engage in collective bargaining (which has at its disposal the threat of a strike), soon you won’t. This is done because, as the story goes, wages must be decreased to increase the competitiveness of the labour force. Simply put, if less money goes into labour during the process of production, what is ultimately being produced will be cheaper on “the market,” and thus, will become more attractive to potential buyers. Thus, with lower wages comes greater profits. ECB president Mario Draghi himself emphasized that the “structural reforms” which Europe needs are, “the product and services market reform,” and then “the labour market reform which takes different shapes in different countries.” He added that the point was “to make labour markets more flexible and also fairer than they are today.” Isn’t that nice? He wants to make labour markets “fairer.” What this means is that, since some countries have protections for various workers, this is unfair to the workers who have no protections, because, as Draghi explained, “in these countries there is a dual labour market: highly flexible for the young part of the population… [and] highly inflexible for the protected part of the population.” Thus, “labour markets at the present time are unfair in such a setting because they put all the weight of flexibility on the young part of the population.” So to make the labour markets “fair,” everyone should be equally exploitable, and thus, equally flexible.

Labour flexibility will then help “specialize” your country in producing one or a few select goods, which you can produce better, cheaper, and more of than anywhere else. Then your economy will have success and the lives of all will prosper and grow… just not their wages. That is left to the “trickle down” from those whose wages are increased, the corporate, banking, and government executives and managers. That is because they take all the risk (remember, you are not risking anything when you passively accept your wages and standards of living to be rapidly decreased), and thus, they should get all of the reward. And because their rewards are so huge, large scraps will fall off of their table and onto the floor, which the wage-slaves below can fight over. By the laws of what I can only assume is “magic,” this will eventually lift the downtrodden from a life of poverty and labour and all will enjoy the fruits of being in a modern, technological, democratic-Capitalist paradise! Or so the fable goes.

The actual, predictable, and proven results of “structural adjustment” aimed at achieving “growth” through “competitiveness” is exploitation. The privatization of the economy allows foreign banks and corporations to come in and buy the entire economy, resources, commodities, infrastructure and wealth. Because the country is always in crisis when it does this, everything is sold very cheaply, pennies on the dollar kind of cheap. That is because the corporations and banks are doing the government and people a favour by investing in a country which is a large risk. The money the state gets from these sales is recorded as “revenue,” and helps reduce the yearly debt (deficit). The result for the people, however, is that mass layoffs take place, commodity prices increase, service costs increase, and thus, poverty increases. But privatization has benefits, remember; it encourages “competitiveness.” If everything was privatized, everyone would compete with each other to produce the best goods for the lowest costs, and everyone can subsequently prosper together in a society of abundance.

What actually takes place is that multinational corporations and banks, which already own most of the world’s resources, now own yours, too. This is not competitive, because they are ultimately all cartels, and collude together in exploiting vast resources and goods from around the world. They do compete in the sense of seeing which one can exploit, produce, and control more than the other. But at the bottom of this system, everyone else gets poorer. This is called “competitiveness,” but what it actually means is control. So if the economy needs to become more competitive, what is really being said is that it needs to come under more control, and of course, in private corporate and financial hands.

State owned industries are simply closed down, employees fired, and the product or resource which that industry was responsible for producing is then imported from another country/corporation. A corporation takes over that domestic good/resource and then extracts/produces it for itself. But this requires labour. It’s a good thing that the labour force has had its back broken through austerity and adjustment, because now there are no protected jobs, wages, hours, unions, or workers’ rights in general. Thus, the population is free to be exploited for long hours and minimal wages. This makes what they are producing to be cheaper, and thus, more “competitive.” This can become extremely profitable for corporations and banks which took all the risk in this entire process (remember: you don’t count; you had very little to begin with, so you lost very little. They have a lot, and thus, a lot more to lose. That’s what risk means). If workers attempt to form unions or organize and demand higher wages, the corporation can simply threaten to close down the plant, and move the jobs to somewhere else with a more “flexible” labour force. Or, the corporation could simply hire local immigrant populations (or ship in others) and pay them less for more hours, and leave you without any jobs. This is called “labour flexibility.” Labour flexibility translates as cheap labour: to bring everyone down to an equally low level of worker standards, and thus, to encourage “utilization,” which means exploitation.

In the ‘Third World,’ this has been best achieved through what are called “Export Processing Zones (EPZs),” a term used to describe a designated area outside of state control in which corporations may establish factories to freely exploit labour as they choose. Commodities are shipped in, goods are produced in the EPZs, from where they are then exported abroad, free of pesky national taxation and regulation. Ultimately, EPZs are mini corporate colonies. In late May of 2012, it was reported that Germany was looking for “alternatives” to its exclusive focus on austerity, and subsequently came up with a six-point plan for “growth.” One of the most notable points from Berlin was to establish “special economic zones to be created in crisis-plagued countries at the periphery of the euro zone,” as “foreign investors could be attracted to those zones through tax incentives and looser regulations.” Essentially, they are EPZs for the eurozone. The plan also calls for establishing trusts which would organize the sell-off of state assets in massive privatization schemes. Further, what is needed, according to Berlin, was to establish a “dual education system, which combines a standardized practical education at a vocational school with an apprenticeship in the same field at a company in order to combat high youth unemployment.” In other words, no more academic or intellectual education for youth, but rather “vocational” or labour-oriented education, to not allow the expectations of the youth to rise too far, and to simply prepare them for a life of ‘work’ by attaining the necessary vocational skills. And of course, the plan for “growth” from Germany also includes more efforts at establishing “labour flexibility,” which would include “a loosening of provisions that make it difficult to fire permanent employees and to create employment relationships with lower tax burdens and social security contributions.” In other words: make it easy to fire workers, have lower wages, and eliminate benefits.

Economists and politicians often talk about the need to “utilize labour flexibility to increase competitiveness and achieve growth.” What they are really saying is that they need to exploit cheap labour to increase control and achieve profits and power. Lucas Papademos was installed (unelected) as the “Technocratic” prime minister of Greece in November of 2011, in order to “help” Greece undertake the mandatory “reforms.” Papademos was the perfect candidate for the job: he was an economist educated in the U.S., served on the board of the Federal Reserve Bank of Boston, was chief economist at the Bank of Greece, he became Governor of the bank in 1994, where he oversaw the conversion of Greece into the euro, and in 2002, he joined the European Central Bank board, where he became a Vice President under Jean-Claude Trichet.

In a 2005 interview with the Financial Times while he was Vice President at the European Central Bank (ECB), Lucas Papademos said that European “growth” potential was looking good, but added: “There is a risk that, unless there are changes in policies – more reforms in labour and product markets – as well as in the behaviour of private economic agents, this [growth] range may have to be revised downwards.” He explained: “the main way that potential growth could increase is through policies that boost productivity growth and raise labour utilization by increasing the average hours worked and the participation rate in the labour market and by making this market more flexible and adaptable.” In May of 2010, Bank of England governor Mervyn King stated that the eurozone needed “structural reforms, changes in wages and prices in the countries that need to regain competitiveness.” Former ECB president Jean-Claude Trichet had also emphasized that what was needed was a program of fiscal austerity, “accompanied by structural reforms to promote long-term growth.” In other words, what was needed was impoverishment, accompanied by exploitation to promote long-term profits.

The European Financial Stability Facility (EFSF), the Euro-area bailout fund, was headed by a man named Klaus Regling. In an article he wrote for The Banker, Regling emphasized that funds from the EFSF would come with conditions, including of course, austerity measures, but also, “structural reforms, such as modernizing public administrations, improving labour market performance and enhancing the tax systems, with the aim of increasing a country’s competitiveness and growth potential.” In other words, the conditions imposed on countries receiving a bailout would amount to an impoverishment program (“austerity”), combined with increased exploitation (“structural reforms”), through privatization of state industries and assets (“modernizing public administration”), creating a cheap labour force (“improving labour market performance”), extracting all remaining domestic wealth (“enhancing the tax systems”), designed to increase control (“competitiveness”) and profits (“growth”).

Mario Draghi, as president of the ECB, called for a “growth pact” (or a “profit pact”) for Europe, to go alongside the “fiscal pact” (or “poverty pact”). This received quick endorsements from France’s new president Francois Hollande, Angela Merkel, and José Manuel Barroso. Merkel was sure to emphasize, however, that growth would be “in the form of structural reforms.

The combination of “fiscal austerity” and “structural adjustment” are generally referred to as a “comprehensive structural adjustment program” or a “restructuring of the economy.” This language is important to understand because “restructuring” as a word is used to describe two processes: one, is that it is what is needed to prevent a country from defaulting on its debt and to return the country to a period of growth; and, on the other hand, “restructuring” is used to describe what takes place after a country defaults. The words in both situations are the same, and so are the policies, though in a default they are inflicted more severely. The very process we are told we must undergo to prevent a default, is the very same process that we undergo after a default. Thus, the combination of fiscal austerity and structural adjustment is, in actuality, a slow and painful default.

This combination of austerity and adjustment amounts to a program and effect of social devastation. Thus, the words “structural adjustment program,” “restructuring,” and “default” in actuality translate into social genocide. These three terms provide further insight into their use: the class system is what is being restructured, as middle classes are wiped out and pushed into poverty, the poor are made destitute, and the elite become concentrated and in total control; the political and economic system is being adjusted to fit this restructuring; and the promise that people everywhere were told, that their leaders and society exists to serve their interests, is what is being defaulted on. The state does not default; it is the ‘social contract’ that is defaulted. Just as Mario Draghi told the Wall Street Journal, “the European social model has already gone… Fiscal consolidation is unavoidable in the present set up, and it buys time needed for the structural reforms.” Thus, social genocide.

As George Orwell wrote in his 1946 essay, “political language has to consist largely of euphemism,
question-begging and sheer cloudy vagueness.” But there remains intent and meaning behind the words that are used. When we translate the political language of the European debt crisis, it reveals a monstrous agenda of impoverishment and exploitation. Thus, we also see the necessity of political language for those who use it: one cannot argue openly for programs of impoverishment and exploitation for obvious reasons, so words like “fiscal consolidation” and “structural reform” are used, because they are vague and obscure.

Ultimately, one can get away with saying, “we need a comprehensive austerity package augmented by structural reforms, such as labour flexibility, designed to increase competitiveness and facilitate growth,” as opposed to: “We need to rapidly impoverish our populations, whom we will then exploit to the fullest, such as by creating a cheap labour force, which would increase elite control and generate private profits.” Such honesty and bluntness would lead to revolt, so, political language is used instead. In Europe, political language is part of a ‘power dialectic’ which supports policies and agendas that aim to take more for those who already have the most, and to take from all the rest; to impoverish, exploit and oppress; to plunder, profit and punish.

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 be finished by the end of summer:

Super Mario Monti and the Dictatorship of Austerity in Italy

Super Mario Monti and the Dictatorship of Austerity in Italy

By: Andrew Gavin Marshall

The following is Part 2 of a two-part excerpt on ‘Italy in Crisis.’ These excerpts are rough-draft, unedited samples of a chapter on the European debt crisis to be featured in my upcoming book (as yet ‘Untitled’), to be done by the end of the summer. The book covers the following: the origins, evolution, and effects of the global economic crisis; the acceleration of international imperialism; the elite global social engineering project of constructing a system of ‘global governance’; emerging resistance and revolutionary movements (and elite attempts to co-opt, control, or crush them), including the Arab Spring, European anti-austerity protests, the Spanish Indignados, the Chilean student movement, the Occupy movement, the Quebec ‘Maple Spring’, and the Mexican student movement, among others. This sample allows you to see the research that is going into this book, and if you would like to see the book come to completion, please consider making a generous donation to The People’s Book Project. With a fundraising goal of $2,500 the Project has raised $810, and just $1,690 to go!

In Part 1 of this series (The Decline of the Roman Democracy and Rise of the ‘Super Mario’ Technocracy), I examined the Technocratic coup in Italy, which removed the democratically-elected Berlusconi and replaced him with an unelected technocrat, Mario Monti, an economist, Bilderberg member, former European Chairman of the Trilateral Commission, former European Commissioner for Competition, and a former adviser to Goldman Sachs International, was also on the board of the Coca-Cola Company, and founded the European think tank, Bruegel. Mario Monti was installed by the European elites with one purpose: punish the population of Italy through ‘fiscal austerity’ and ‘structural adjustment.’

The Technocracy of Austerity

Monti wasted no time in punishing the people of Italy for the crimes and excesses of Europe and the world’s elite. On December 2, 2011, Monti announced a 30 billion euro ($40.3 billion) package of austerity measures, which included “raising taxes and increasing the pension age.” Monti described the measures as “painful, but necessary.” He told a press conference that, “We have had to share the sacrifices, but we have made great efforts to share them fairly.” Monti, who is both Prime Minister and Economy Minister, said he had renounced his own salaries from those positions. Considering that he was – until taking those positions – an adviser to Coca-Cola and Goldman Sachs, among other prominent jobs, those salaries likely would not make much of a difference to Monti’s bank account, anyway. The Deputy Economy Minister Vittorio Grilli (who is still on the board of the Monti-founded think tank Bruegel), said that, “the package should ensure that Italy meet its target of a balanced budget by 2013.” The Welfare Minister Elsa Fornero broke down into tears as she announced an end to inflation indexing on many pension bands, which would essentially amount to “an effective income cut for many retired people.” Unions spoke out against the cuts, stating that they would “hit poorer workers and pensioners disproportionately hard.” Deputy Economy Minister Grilli said that 12-13 billion euros of the package would come from spending cuts, and the rest of the 30 billion euro package would come from tax increases. The minimum age for pensioners (that is, the retirement age) was set to be raised for both men and women to 66 by 2018, as well as providing “incentives” to keep people in the workforce until the age of 70.[1]

The austerity package was passed by an undemocratic decree which Monti named the “Save Italy” decree, and while the union leaders denounced the package, the main business lobby in Italy, Confindustria, praised the package as vital “for the salvation of Italy and the euro.” As Elsa Fornero, the Minister for Welfare, began crying as she announced the austerity measures, she explained, “We know we are asking for sacrifices, but we hope they will be understood in the name of growth and to avoid collective impoverishment.”[2] Of course, austerity is just that: “collective impoverishment.”

In response to the austerity package, Italy’s three largest labour unions began a week of strikes on December 12, with port, highway, and haulage workers stopping work for three hours on the 12th, while metalworkers, including employees of Fiat, put down their tools for eight hours. Printing press operators stopped working for a full shift, and most newspapers were expected to not publish the following day. Public transport strikes took place on December 15-16, and bank employees were set to stop work in the afternoon of December 16, while the public administration closed down for the entire day of December 19. Susanna Camusso, the head of the largest and most militant labour federation, CGIL, said, “We’re not giving up on the idea that the austerity package must be changed… It hurts workers, pensions and the country as a whole.” Mario Monti held a last-minute meeting with the union leaders to unsuccessfully attempt to stop the strikes that were set to begin the following day.[3]

CGIL leader Camusso said that as a result of the austerity measures, “We see every risk of a social explosion.” CGIL, which represents six million members, half of whom are pensioners, stated that, “We are flexible in the face of the emergency but we are not willing to accept everything… You can’t ride roughshod over people.” With only 57% of Italians working, raising the retirement age, as dictated by the austerity package, would amount to “closing the door on the young unemployed,” warned Camusso, adding that Monti had done nothing for “young people and women who can’t find work, and when they do it is badly paid.”[4]

In late December, the Italian Senate passed a vote of confidence on Mario Monti’s government when they approved the new austerity package. Monti commented: “Today this chamber concludes a rapid, responsible, complex job… on a decree that was passed in extreme emergency and that enables Italy to hold its head high as it faces the very serious European crisis.”[5]

Prior to the European Summit held at the end of January 2012, Mario Monti was holding meetings with Angela Merkel, Nicolas Sarkozy, British Prime Minister David Cameron, and European Council President Herman Van Rompuy. Italy, wrote the Economist, “it seems fair to say, is back at the top table after being quietly shoved off under the leadership of Silvio Berlusconi.” Monti emphasized to Merkel, Sarkozy, and other leaders that the EU needs to not simply “enforce fiscal discipline,” but to stimulate growth. This would mean, according to Monti, “not only finding ways to lower interest rates, but encouraging liberalisation wherever possible.” Monti even suggested that Germany should “liberalize” (meaning: privatize) some of its services. Monti, in an interview with the Economist, stated that, “It is rather unusual for Italy to be at the forefront of pro-market initiatives,” but that he planned to undertake a major liberalization of Italy, saying: “I am convinced that it is also in Italy’s national interest.” Acknowledging that his government is “unelected,” Monti told the Economist that, “there was in Italy a hidden demand for a boring government which would try to tell the truth in non-political jargon.” Monti warned, however, that, “Austerity is not enough, even for budgetary discipline, if economic activity does not pick up a decent rate of growth… A lowering in interest rates does not depend only on Italy’s efforts but also, and essentially, on Europe’s ability to confront the crisis in a more decisive way.” Monti stated that Italy’s domestic political situation is getting problematic for the EU, with a growing appeal to ‘Euroscepticism,’ warning: “What I see now, week after week, in parliament is a widening of the spread of this attitude… The degree of impatience-cum-hostility to the EU, to Germany and to the ECB is mounting.”[6]

Monti warned Merkel and other EU leaders that Italian sacrifices alone would not get Italy out of crisis, that Italy needed some form of outside support, without which, he warned: “a protest against Europe will develop in Italy, also against Germany, which is viewed as the ringleader of E.U. intolerance, and against the European Central Bank… I cannot have success with my policies if the E.U.’s policies don’t change.” In particular, he was referring to the need to bring down Italy’s interest rates, something that could likely only be achieved through the ECB purchasing large amounts of Italian bonds, which would increase “market confidence” in Italy and bring down interest rates. Otherwise, Monti lamented, the popular discontent of the people with the economic situation could push Italy to “flee into the arms of populists.”[7] Spoken like a true unelected technocrat. Imagine that, a government which dares to serve the interests of the people over whom it rules! Not in the ‘New Europe.’

In late January, Philip Stephens, writing for the Financial Times, stated that, “Italy is back,” and that while Merkel “sits at the top of Europe’s power list,” and Sarkozy “can lay claim to be the continent’s most energetic leader,” it is Mario Monti who “is its most interesting.” Stephens declared that, “Mr. Monti’s fate may turn out to be Europe’s.” Barack Obama’s White House announced that in a future meeting between Obama and Monti, the two leaders would discuss “the comprehensive steps the Italian government is taking to restore market confidence and reinvigorate growth through structural reform, as well as the prospect of an expansion of Europe’s financial firewall.” Stephens translated this as: “Mr. Obama is behind Mr. Monti all the way – including when he puts pressure on Ms. Merkel.” Lamenting the Italy of Berlusconi, who was “shunned by his European Union peers,” though always embraced as a friend by Russia’s Putin, Stephens wrote that Monti, “a serious-minded academic with a serious plan, is different in every dimension.” He also noted that there was “a second Italian at the top table,” meaning Mario Draghi, the new President of the European Central Bank, “the other Mario,” who in terms of economic orthodoxy, “styles himself an honorary German.” Stephens wrote that Monti is so important because “it is in Italy that the euro’s long-term prospects will be decided,” as Italy is the euro-area’s third largest economy (after Germany and France), and if Italy “cannot chart a credible economic course, the euro does not have a future as a pan-European project.” While praising Monti’s austerity package, Stephens said that, “the real test will come in liberalizing the economy,” which “will not be easy,” but “the choices are unavoidable.”[8]

Mario Monti, upon unveiling his “liberalization” plans in late January, stated: “Italy’s economy has been slowed down for decades by three constraints: insufficient competition; an inadequate infrastructure; and complicated administrative procedures.” Thus, Monti passed a decree opening the occupation of taxi drivers up to “competition,” prompting taxi drivers to block central streets in Rome. As liberalization brings in higher petrol prices (which were previously under more control), truck drivers and agricultural workers set up barricades in Sicily. One Italian paper (owned by the Berlusconi family) headlined: “Half of Italy is ready to wage war on the government.” Once decrees are issued, they go into effect immediately, but require parliamentary approval within two months. Monti’s liberalization decrees of January (following the austerity decrees of December) also targeted the gas and electricity markets, as well as the insurance sector and public services. Next in Monti’s target: the labour market. One analyst at Roubini Global Economics told the Financial Times: “Although structural reforms are necessary to boost long-term growth, they will take several years to bear fruit and, in a period of economic contraction and government retrenchment, will have an adverse effect on short-term output, deepening the recession which will last through 2013.”[9]

In his first interview since resigning as Prime Minister, Berlusconi told the Financial Times in early February that he was “stepping aside” from frontline Italian politics and had no intention of running for prime minister again. Berlusconi gave his “strongest endorsement to date of the technocratic government led by Mario Monto,” specifically in “its intention to implement labour market reforms opposed by trade unions.” Berlusconi declared: “I have now stepped aside, even in my party.” He explained that he resigned the previous November because he had been attacked “by an obsessive campaign by the national and foreign media that blamed me personally and the government for the high spread of Italian state bonds and the crisis on the stock market.” Thus, he contended: “After having evaluated the causes of the crisis, which did not rest in Italy but in Europe and the euro, I believed that if I had stayed in government I would have damaged Italy as we would have had more terrible media campaigns… With a sense of responsibility, though having a majority in both houses of parliament… I stepped aside and with elegance.” One can always rely upon a politician to sing their own praises, especially if they are undeserving. He did suggest, however, that he would consider running for parliament, quipping: “I still have strong popular backing, almost twice as much as my colleagues Merkel and Sarkozy… In opinion polls, I personally have 36 per cent support. If I walk out in the street I stop the traffic. I am a public danger and I cannot go out to do the shopping.” Berlusconi concluded:

The hope is that this government, which is supported for the first time by the whole of parliament, will have the chance to propose great structural reforms, starting from the state’s institutional architecture, without which we cannot think of having a modern and truly free and democratic country.[10]

Martin Wolf, perhaps the most influential financial columnist in the world, writing for the Financial Times in January of 2012, asked if the two Marios – nicknamed by the media as the “Super-Marios” – will be able to “save the eurozone?” Wolf wrote that they “bring sophisticated pragmatism to the table,” and hoped that they would “shift policy in a more productive direction.” Wolf referred to the ECB’s new long-term refinancing operation announced in December of 2011, which is essentially a bank bailout with a three-year yield at the ECB’s average interest rate (which stands at 1% currently). When the ECB began this new program, roughly 523 banks took 489 billion euros, described by Wolf as “a bold and cunning move by Mr. Draghi and probably the most he could get away with right now.” Wolf also referred to Monti’s willingness to argue that the creditor countries “do more to lower his country’s borrowing costs,” or interest rates, warning in the Financial Times against a “powerful backlash” among voters in the EU periphery states. Wolf wrote that, “Mr. Monti is in a strong position to make this argument,” as Monti “is a well-respected official with staunchly pro-European views and a strong sympathy for German attitudes to competition and fiscal and monetary stability.” Wolf explained that, “Draghi and Monti are addressing two interlinked fragilities: the vulnerability of the banking system and the unsustainable terms on which weaker countries can now borrow.” While praising the “Super-Marios,” Martin Wolf said that they alone could not save the eurozone, whose problems run very deep, and where even the ‘solutions’ to the crises felt by various EU states can make larger, structural reforms even more challenging. As Wolf correctly noted: “In Italy’s case, for example, the combination of high interest rates and vulnerable banks with fiscal austerity is likely to lead to a lengthy and deep recession and so to a rise in cyclical fiscal deficits [debt incurred during and because of the economic crisis at the time] as the structural deficit falls [the debt acquired by spending more than what is brought in through revenue].” Naturally, though, this simply means that the overall debt will increase. Wolf wrote, ultimately, that if “break-up [of the euro] is ruled out, one must choose reforms, however painful.” This is because, according to Wolf, “the costs of failure are so large that the possibility of domestic and eurozone reform must be kept alive.” On this, the “Super-Marios” can be leaders.[11]

When the credit ratings agency Standard & Poor’s downgraded Italy’s debt in January by two notches to BBB, “with a warning of more to come,” Mario Monti stated that he “agrees with almost everything in S&P’s analysis,” and “jokes that he could almost have written it himself.” He told the Financial Times that, “If I ever dictated anything, it must have been what S&P had to say about domestic Italian economic policy,” and then laughed. As a result of the downgrade, Italy had the lowest credit rating of any eurozone country which did not receive a bailout, apart from Cyprus. Why was Monti so pleased with the downgrade? He quoted the report to the interviewer from the Financial Times, going through the risk factors associated with Italy, but adding: “Nevertheless, we have not changed our political risk score for Italy. We believe that the weakening policy environment at European level is to a certain degree offset by a strong domestic Italian capacity.” In other words: “Mr. Monti’s 60 days in office have been enough to convince the agency that his government is on a path of reform that could return the country to growth and shrink its debt levels, but that European Union mismanagement of the eurozone debt crisis is dragging down struggling countries, including Italy.” Mr. Monti stated, “I think I’m the only one in Europe not to have criticized the rating agencies.”[12]

In discussing how his government came into existence, as in, not through democratic means, Monti told the Financial Times that he agreed that he could be helping to bring a “revolution,” referring to the number and extent of measures he intended to pass before democratic elections take place. He explained that if Italy’s borrowing costs (interest rates) fall, “the political parties will not dare stop the experiment [in technocracy] before it has to stop… And in my view the political parties will not dare go back to the acrimonious, superficial and tough confrontation that animated parliament. The image and style of public debate has changed.” He added: “If and when success comes, you will find us not really taking credit… My ambition is that Italy becomes a boring country, in relative terms. It is really in the hands of Europe.”[13]

In February of 2012, Mario Monti gave an interview with PBS Newshour in which he continued to heap praise upon austerity measures, saying that because Greece’s debt had been so high, “it would have been hard – let’s face realities – to have a soft landing from those excesses of deficit without a recession.” He added, “I think there is a valid point if we say that Europe needed to be put under a safe place as regards the public finances of each member state.” Monti thanked “German and other pressures” for pushing countries in that direction of austerity. And now, he claimed, “the time has come to focus more energies on how collectively we can achieve more growth in Europe.”[14] Growth, of course, simply means growth of profits for big banks and multinational corporations.

Super Mario’s ‘Structural Adjustment’: The Meaning of “Growth”

When Europe’s political and financial elite discuss “growth” in the current context as an added “solution” on top of austerity, what they really mean is to implement major structural changes: to liberalize the economy, privatize all assets, state subsidies, services, industries, and resources. This will allow corporations and banks to come in and purchase all of these assets and industries, and since this process takes place in the midst of a deep crisis, they are able to take control of all the assets for very cheap prices. This is called “foreign direct investment.”

The major corporations of Europe, of North America, and elsewhere, will be able to control directly a much larger share of the economy. Their purchases provide short-term funds for the state, thus increasing short-term revenue. However, since state industries are privatized and sold for pennies on the dollar, they are actually losing long-term revenue, but that isn’t mentioned. Markets respond to the short-term, not the long-term, and of course, we want to have our world and its social, political, and economic stability determined by forces that theoretically do not look more than a couple months ahead. The process of liberalization and privatization is also sold on the prospect of “creating jobs,” because the theory goes that corporations will enter the market with the ability to invest and thus, create jobs for workers. The reality is that the corporations buy up the industries, and generally shut them down to relocate elsewhere for cheaper labour. This means mass firings. This also means that unions and labour rights in general have to be dismantled and people have to be kept in line, under control.

Austerity measures are aimed at redistributing wealth from the mass of society to the very top percentiles, which is achieved through increased taxation, mass firing of public sector workers, cuts to social spending, health care, welfare, education and other areas. This, quite predictably, creates a massive social crisis. Many austerity packages – such as Monti’s in Italy – also include efforts to undermine labour and unions. This prepares the work force for the period and programs of “growth,” in which workers will be forced to submit to exploitative working conditions with no collective bargaining rights, or else the industries will simply fire them all, close up shop, and go elsewhere. This is why we hear all the Eurocrats and politicians in Europe and elsewhere explain that austerity and growth are not mutually exclusive, that they can and should co-exist together. Indeed, from the view of the ‘effects’ of these policies, a joint program of “austerity” and “growth” makes perfect sense: commit social genocide (through fiscal austerity), and exploit, plunder, and profit from the spoils of economic war (growth through structural adjustments).

In the ‘Third World’ over the past three decades, these policies were imposed by the IMF, World Bank, Western imperial powers, and Western banks and corporations. With the primary engine being the International Monetary Fund (IMF), countries in Latin America, Africa, and Asia, which were in the midst of a major debt crisis in the 1980s, were forced to sign what were called ‘Structural Adjustment Programs’ (SAPs) with the IMF and World Bank if they wanted to get any loans or aid from Western banks or institutions. The SAPs would be a set of conditions that the countries would have to adhere to if they were to get a loan, and the conditions included a mix of ‘fiscal austerity’ and ‘structural adjustment’: devalue the currency to make it cheaper to invest in the country (but which creates inflation and increases the costs of food, fuel, and other commodities, hurting the poor and middle classes); cut social spending to reduce the deficit (but which saw the destruction of education, health care, welfare and social programs, as well as mass firings from the public sector); trade liberalization, to allow for foreign countries and corporations to more easily invest in the country, and thus, bring in revenue (which meant dismantling all tariffs, trade barriers, price controls, state subsidies, and resulted in the easy exploitation and cheap purchase of the country’s wealth by foreign corporations and banks); and privatization, meant to encourage investment and allow for the market to make state-owned industries and asset more “efficient” (but which resulted in mass firings, closing of entire industries, mass corruption, and total control of the economy being handed to foreign banks and corporations).

The result of SAPs – the combination of “austerity” and “growth” – over three decades has been devastating: poverty has rapidly accelerated and expanded; wealth becomes heavily polarized, with a tiny minority owning the economy, and everyone else with next to nothing; the small elite become increasingly dependent upon and integrated with a global elite (based primarily in the West), and disassociated from their fellow citizens; mortality rates go up as health care and social services are dismantled or made incredibly expensive at a time of deepening poverty in which more people need the services more than ever before; social unrest and repression become rampant, as the people rise up against ‘Structural Adjustment,’ the state resorts to increasingly authoritarian and brutal measures to control or crush resistance to the programs and to protect the dominance of the tiny minority, locally and internationally.

This, essentially, is the fate of Europe and the rest of the industrialized world. Europe, simply being the most integrated region of the world (a trend which is accelerating everywhere in the world), is experiencing the brunt of this crisis before the rest of the industrialized nations of the world. So when politicians and financial elites say that Europe needs “growth” in conjunction with austerity, and this will lead to “recovery”, remember what “growth” means: exploitation, plundering, and profits. When you remember this, suddenly everything the politicians and pundits have been saying for years, suddenly makes sense.

When asked if he felt that there was a danger of “a backlash” in Italy against what people “may see as E.U. imposed changes to their way of life that are very, very painful,” Monti replied that, “there was such a risk of backlash,” but he explained: “I try to avoid that backlash by always presenting the necessary sacrifices that Italians have to go through not as an imposition from Brussels or Germany or the European Central Bank, but rather as a necessary step that Italians have to undertaking — to undertake also at the suggestion of Europe, but basically for their own interests, for the interests of ourselves and of future generations of Italians. This is precisely meant to avoid backlashes.” Interesting statement: saying that austerity is for the interests of Italians and “future generations” is done not to speak truth, but “to avoid backlashes” against the E.U. Monti emphasized that, “it is very, very important” to ensure that the single currency, “which was meant to be the culminating point of the European construction,” does not become, “through psychological negative effects, a factor of disintegration of Europe.”[15]

In an interview with the Wall Street Journal in early February, Mario Monti publicly outlined his strategy for “growth” in Europe, which he proposed privately to other European governments the previous month, pushing Europe beyond austerity and suggesting “tougher European rules aimed at prying open member states’ national industries,” of course to “encourage economic growth and competition in the euro zone.” Monti explained that if this is not done, “Europe will not be a nice place to live in five years from now if we haven’t solved the problem of how to grow… We have to say what growth will look like in a fiscally compacted union.” His proposal “would speed up the process by which European authorities sanction nations that violate the tenets of the EU’s single market.” For Monti and other technocrats like himself, this “growth” does not include government spending. Since Italy is supposed to knock off 30 billion euros ($39.8 billion) – 2% of its GDP – from its public debt “every year for decades,” this means, explained Monti, that “any thought of budget-stimulated growth ideas will have to go away.” Instead, Monti suggested that the European Union “should back single markets more forcefully to support economic growth,” which instead of having Berlin sign off on the EU spending its way to prosperity, would mean “to push Germany to liberalize its own economy,” which, claimed Monti, “would have a trickle-down effect.”[16]

Monti was undertaking various programs of “liberalization” in Italy, such as liberalizing major professions and sectors, such as pharmacies, taxis, and notaries. To handle Italy’s “unemployment” issue, which is significant to say the least, Monti was seeking to “introduce new measures aimed at making it easier for companies to hire and fire workers,” which, he said, “will increase the overall flexibility of the labor market,”[17] meaning that it will allow for cheaper and more easily-exploited labour by corporations. Monti even stated that the changes he was making in the labour market were aimed at “reducing the segmentation of Italy’s labor market between those who are protected, sometimes hyper-protected, and those, particularly the young, who can’t really get into the labor market.”[18] So, instead of having various work forces that are “protected” (or “hyper-protected” in Monti’s words), it would be better to simply bring everyone down to the same level to allow for “flexibility,” or in other words, easy exploitative capacity. For “Super Mario,” no protection is better than any protection when it comes to workers. Imagine if there were politicians who thought the same thing about bankers.

While Europe agreed to a ‘Fiscal Compact’ to ensure austerity, Monti felt that the EU should add to this a growth pact, and felt that the supranational and undemocratic European Union should have “an efficient mechanism to swiftly sanction countries that don’t open up their economies to competition,” meaning exploitation and plundering. Thus, the previous month, Monti submitted a proposal “aimed at giving the European Commission – the EU’s governing body – greater power over sanctioning member states.” This proposal, which had not been reported prior to this interview, “could speed up the process by years, by making it easier for the commission to impose rulings rather than having to take member states to court, as it often does now.” When asked what this has to do with growth, Monti replied: “A lot, because if you give more teeth to the commission to remove national obstacles to the functioning of the single market, we’ll create a large level playing field, which the business community always insists is a key component of growth.”[19] Well that answers that: it will lead to “growth” because the business community says so. Thank you, Prime Minister.

Monti acknowledged that this creates obvious concerns, especially with countries like the U.K. and France which would likely oppose the proposal for fear of its encroachment on their sovereignty, and the existence of a “democratic deficit” which will continue “as member states gradually hand over more of their fiscal and economic policies to the central oversight of European institutions.” But for this, Monti has a solution: “Much of the reconciliation between more centralized governance and the scope for democracy will be resolved through an even stronger role of the European Parliament,”[20] which is, in effect, utterly useless.

The Most Important Man in Europe?

In late February, Time Magazine published an article reporting on an interview they conducted with Monti in which they referred to him as “the most important man in Europe.” The article described Monti as “the tough taskmaster Italy so desperately needs,” though he “has the aura of a gentlemanly grandfather.” Time reported that Monti was “fixing a deadlocked democracy,” no doubt by ruling as an unelected technocrat, “and charging forward with greater European integration,” in a “wholesale overhaul of Italian society.” Monti told Time, “I believe that reforms will not really take hold if they do not gradually come into the culture of the people.” Time declared that for the problem of Italy’s partisan politics, “the solution was Monti.” Monti said that the request to rule came “at such a severe time of crisis for Italy that I could not refuse.” Thus, declared Time Magazine: “Today he reigns over Rome like a new Caesar.” In effect, “the democratic process has been suspended to allow an unelected technocrat to implement policies that elected politicians could not.” Monti himself refers to this as a “temporary mutual disarmament” of the left and right,[21] a technocratic euphemism for “dictatorship of austerity.”

The publication praised Monti’s austerity package in December, his liberalization program in January, and his new plan to overhaul the labour market; then lamented that Monti is taking on “entrenched interest groups,” such as taxi drivers (no joke, the article referred to taxi drivers as “entrenched interest groups”), who staged strikes in Rome and other Italian cities, and pharmacists who were threatening to do the same thing, or truckers that blocked roadways in protest of a fuel-tax hike. The president of a national taxi union stated, “In Italy, the economy was more based on rules that used to be applied to create wealth for the general public… I don’t understand why suddenly the only solution is to get rid of the rules.” He added: “Monti has always lived in the salons… He really doesn’t know the problems of ordinary people.” To this, Monti replied, “Maybe they’re right,” but he felt this was an advantage: “Italy has piled up huge public debt because the successive governments were too close to the life of ordinary citizens, too willing to please the requests of everybody, thereby acting against the interests of future generations.” Monti earned a reputation – and the nickname “Super Mario” – back when he was an EU Commissioner, where he came into conflict with some major global corporations, such as blocking a merger between GE and Honeywell, which prompted the then-CEO of GE, Jack Welch, to refer to Monti as “cold-blooded.” Monti acknowledged that as he is more successful in pushing “reforms,” the effects of those reforms would put pressure on the political parties to abandon him, and make it more difficult for him to continue his programs before he leaves office in 2013. “The point,” explained Monti, “is how to keep this pressure even once the most visible elements of emergency hopefully are over.” This would largely be left to accelerating the process of European integration: “I think there is a genuine wish on the part of the E.U. and Germany and France to again play an active game with Italy for a relaunch of European integration… I think we will be seeing an acceleration of the good news.”[22] Apparently, accelerating the integration and institutionalization of an undemocratic, technocratic, supranational structure is “good news.”

When Mario Monti went to visit Wall Street on the seventh floor of the New York Stock Exchange (to visit his actual ‘constituents’), he received a long, standing ovation when he entered the room with an audience of 200 people. Charlie Himmelberg, a managing director at Goldman Sachs, commented that, “It’s been impressive how quickly the sentiment has changed on Italy.” Blaise Antin, the head of sovereign research at TCW said, “It is a good thing Monti visits investors… But plenty will ultimately depend on the Italian parliament” in the tough choices ahead.[23] Monti told the crowd of Wall Street financiers that, “What’s important is that this improved governance of the euro zone is almost there and the euro zone crisis is almost overcome, I believe.” Monti later reflected at a new conference in New York that he was “warmly greeted by the financial community” on Wall Street.[24] No doubt.

Super Mario Wages War on Workers

After making the rounds in interviews, state visits, meeting Obama, and visiting his constituents at Wall Street, Mario Monti went back to Italy in late February to push forward on his “labour reforms” to undermine and destroy unions and workers’ rights. By March, the effects were being felt among Italians. Monti went to great pains to denounce what he described as Italy’s “two-tier labour market,” dividing generations and leaving the young out to dry. The New York Times wasted no time in supporting Monti’s calls to dismantle this system. Framing the discourse around the generational divide, in which “older workers came of age with guaranteed jobs and ironclad contracts granting generous pensions and full benefits,” the younger Italians, “the best-educated in the country’s history… are lucky to find temporary work, which offers few benefits or stability.” Thus, one of Monti’s “solutions” was to “make it easier for companies to hire and fire.”[25]

Very typical of the neoliberal economic discourse, is to draw conclusions based upon these facts alone: older workers have benefits, younger workers have few opportunities; thus, older workers are destroying future generations with their “entitlements.” Solution: dismantle entitlements and benefits so all can work on an “equal playing field.” The discourse divides workers and people against each other, meanwhile, there is no mention of the fact that the reason why the youth have so few job opportunities has more to do with the lack of state and business investment, the deregulation and privatization of industries over the 1990s (while Mario Draghi was head of the Treasury), the effects of the euro (creating an economic hierarchy between the Northern nations of the EU and the Southern states), or the very obvious fact that Italy is in a severe crisis because its corrupt government colluded with global banks and suffered under the institutions and rules of the E.U., which promote elite interests and undermine democracy and self-determination. No, mentioning the massive – and elite-driven – causes for the crisis Italy faces, and the unemployment issues which are symptomatic of that crisis, is too inconvenient for the New York Times. Instead, it is simply easier and more acceptable in the popular discourse to pit workers against each other, in an effort to undermine them all, collectively.

An economist at Bocconi University, of which Mario Monti was president until he became Prime Minister of Italy, supported this discourse for Italy, arguing: “Reforming contracts, unemployment benefits and salary levels would permit labor productivity to rise, which would in turn permit the country to grow… It’s a central theme for improving a country like Italy.”[26] Undertaking all of these labour “reforms,” in actuality, would allow for youth to enter the job market to a certain degree, as it would mean that other “hyper-protected” workers no longer have protection, and all of Italy’s workforce is left vulnerable to exploitation. Thus, youth could be hired as extremely cheap labour, since for them, some work – even horrible work with little pay – is better than nothing at all. If workers who had protections attempt to organize and salvage various labour rights, companies can simply fire them and hire cheap, young workers with no benefits as replacements. This is called “youth opportunity.” This is how sweatshops became so popular in the ‘developing’ world over the past several decades, which were also brought about through fiscal austerity and structural adjustment: undermine labour/worker rights for easy exploitation, and if they attempt to organize, strike, or obtain rights, foreign corporations can fire them all and hire cheaper labour, close their factories and outsource elsewhere, or ship in cheaper immigrant labour forces. This has the effect of bringing the standards and conditions of the entire work force, and indeed, the global labour market, down to a more easily exploitative position: equality of exploitation (what economists and bankers call “labour flexibility”).

Monti declared: “We have to get away from a dual labor market where some are overly protected, while others totally lack protection and benefits when unemployed.” Thus, he said, “equity and growth” would be the “watchwords” of his government. Since “growth” means profits, plunder, and exploitation, “equity” is a logical addition to this: equity in exploitation. The New York Times, reporting on a 33-year old graduate without job opportunities, said she would “welcome” such changes, as she, “like so many in her generation, feels thwarted, overly reliant on her parents and uncertain of her future.” Amazingly, in the same article, it was acknowledged that the two-tier labour system was not created by “entitlements,” but rather as a result of policies the government undertook nearly a decade previous (in facilitating Italy’s entry into the euro-zone), in which the state made it easier for Italian corporations “to hire younger workers on a range of temporary contracts and internships,” while many of the early-retirement benefits for older workers were put in place during the mass privatizations (undertaken by Mario Draghi), in order to facilitate the reduction of staff “and cutting costs in the period before Italy joined the euro zone.” The article then went on to blame the unions, claiming that “younger Italians have come to see them as part of the problem.”[27]

One must actually pause in appreciation of the intellectual gymnastics displayed by the New York Times in publishing an article which quietly acknowledges that the causes of Italy’s two-tiered labour and employment issues were the result of demands and policies put in place in order to join the single-currency, yet still concluded that the main problem was “overly-protected workers,” and thus, that the solutions lie in undermining labour and workers’ rights. The article even acknowledged that the government’s policies of making it easy for Italian corporations to exploit youth labour were designed “to make the market more flexible,” yet does not question the logic in Monti’s program of solving the crisis brought on by this “flexibility” by implementing measures to make it “more flexible.” The Monti-logic, which the New York Times readily endorses, is to look at policies that didn’t work (in terms of what people were ‘told’ they were meant to achieve), and then to advance and accelerate those same policies in the hopes that it will have the opposite effect as to that which it has always had before. Einstein once said that the definition of insanity is doing the same thing over again, expecting different results. If we actually apply that definition, almost the entire discipline of economics – and most especially neoliberal economics – is absolutely insane. Either that, or they simply use coded rhetoric which sounds like one thing, means another, and is done so to promote a global social, political, and economic agenda which would otherwise be impossible to publicly justify: preserving and accumulating for a tiny minority, and exploiting and punishing the vast majority.

Right on cue, the effects of the economic crisis over the previous year, exacerbated by Monti’s labour reforms and austerity package, was being felt across Italy. In Naples, one of Europe’s poorest cities, by late March it was reported that child labour has returned, as “thousands of children are leaving school to help their families make ends meet,” an increasing trend in the country, in which children work in the black market or “are recruited for sinister purposes by the mafia.” The most common job for child workers is as a “shop assistant,” earning less than a euro an hour. This trend had been developing in Italy over a number of years, as one local government report in the Campania region revealed that between 2005 and 2009, more than 54,000 children left school to join the work force, with 38% of them under the age of 13. The deputy mayor of Naples, located in the Campania region, commented: “Of course, we were the poorest region in Italy. But we haven’t seen a situation like this since the end of the Second World War… At age 10, these kids are already working 12 hours a day, which is a clear breach of their right to development.” The succession of financial reforms put in place by the Italian government since 2008 introduced drastic cuts, and in June of 2010, the Campania region had to end its minimum welfare program, “plunging more than 130,000 families into poverty.” Children from poor families face three options: struggle to stay in school, drop out to work in the black economy, or “join the ranks of the Camorra, the Neopolitan mafia.” Since the beginning of the crisis, support for youth and their families has been cut by 87%, and roughly 20,000 educators in the Campania region had not been paid for two years.[28] Perhaps this is what Mario Monti means by “labour flexibility.”

In late March, reported the Economist, as Mario Monti was engaged in talks with employers and unions, trying to get them to accept labour-market reforms, “when it became clear that unanimity was impossible, Mr. Monti declared the talks over and said his government would press ahead regardless.” It is quite appropriate, one must acknowledge, that for a government which was created through undemocratic means, it should only continue to act and rule undemocratically as well. Such is the path Mario Monti has taken with Italy. On March 16, the Italian parliament’s three largest parties endorsed Monti’s reforms, on the warning from President Napolitano that, “failure to agree would have serious consequences.” The main problem for Monti came from the largest union federation, the CGIL, an historic ally of the Democratic Party (PD), which had endorsed Monti and his austerity packages, leading one senior leader in the PD to suggest that the party leader, Pier Luigi Bersani, “could face a backbench revolt or a party split.”[29]

The Wall Street Journal naturally congratulated Monti, in an article entitled, “Monti pulls a Thatcher,” for showing “political courage” in walking away from negotiations with Italy’s labour unions, announcing that he was “going to move ahead with reforming the country’s notorious employment laws – with or without union consent.” Italy had stringent rules regarding the ability of employers to fire workers, what the Wall Street Journal referred to as a “job-for-life scheme,” which Monti’s reforms will replace with a “generous system of guaranteed severance when employees are dismissed” for what are called, “economic reasons.” The Journal heaped praise upon Monti, as “standing up to Italy’s labor unions takes courage, and not only of the political sort,” noting how there was an economist ten years prior who was shot and killed “for his role in designing a previous attempt at labor reform.” Monti had been ruling by decree since December, but announced in late March that the labour reform proposals would be voted through the National Assembly. The WSJ wrote that as a former economics professor, Mario Monti “has a rare opportunity to educate Italians on the consequences of opposing reform,” to which the Journal suggested, they need only to look at Greece: “If that doesn’t scare them sober, then nothing will help.”[30]

Within a week, Monti allowed for a very slight change to his labour reform bill, which would give judges “greater leeway in determining whether companies were justified in laying off a worker.” The Wall Street Journal then referred to this, in an article entitled, “Surrender, Italian Style,” as a “cave-in to the left side of his political coalition,” and noted that, “Monti was brought in as Prime Minister to retrieve his country from the edge of a Greek abyss,” and that this “labor bill is a surrender to those who are bringing” that abyss to Italy.[31] For the WSJ, any capitulation – no matter how minor (and this particular one was very minor) – to unions and labour, is deemed an absolute “surrender” or “cave-in.” Monti defended himself in a letter to the Wall Street Journal in which he explained that this “surrender” was still a move in the right direction of reform, as it “introduces a more predictable [i.e., controllable] and speedier [i.e., systematic] procedure to handle dismissals for economic or other objective reasons.” He elaborated: “First, a fast, compulsory, out-of-court settlement procedure at local level; then, if conciliation fails, the worker can take the case to a judge as happens in other countries.” In “extreme cases” where the “economic or other reason” for firing the worker is deemed “manifestly inexistent,” the judge then has the ability to decide “for reinstatement instead of compensation.” When the “economic dismissal” is “not justified” in other cases (i.e., not an “extreme case”), compensation will be given with a cap at 24 months of wages. Monti said that it was a “complex reform” and deserves “serious analysis rather than snap judgments.” He then wrote: “I would suggest that perhaps the fact that it has been attacked by both the main employers association and the metalworkers union, part of the leading trade union confederation [CGIL], indicates that we have got the balance right.” This reform, claimed Monti, “will make the Italian labor market more flexible” which “lays the foundation for increase productivity, economic growth and employment.”[32]

In mid-April, Italy’s major unions took to the streets of Rome in protest against Mario Monti’s pension-system reforms put in place in January, “saying it traps hundreds of thousands of workers in a legal limbo without retirement pay.” The reform that raised the retirement age affects those who are already retired. Bloomberg gave the example of Maria Dinelli, who had an early-retirement deal in 2008, in which her former employer provided benefits until her pension was to begin in 2015. Under Monti’s reforms, her pension won’t begin until 2017, upon which she commented, “I’ll be without a salary or pension for two full years before the retirement age, and will have to put money aside… You were told you had guarantees, then you lose it all because a new government takes power and changes the rules.” Tens of thousands of Italians took to the streets of Rome on April 13 as the Italian Labor Ministry said the night before that, “there are 65,000 Italians who may be left without support between when they leave work and when their pension kick in as the higher retirement age delays their payout,” while unions say the amount of people affected is five times that size, at roughly 300,000, prompting one union leader to state, “If these figures were correct,” referring to the Labor Ministry numbers, “then we’d have to say that the thousands of workers who’ve turned to the union for help are not real and just ghosts.” A labor law professor in Rome estimated the number may actually be as high as 450,000.[33]

Monti referred to this plan as “cutting edge.” Well, it certainly ‘cuts.’ Meanwhile, Italians are facing increased taxes and record-high gasoline prices, thus producing a “slump in consumer demand” which pushed Italy into a deeper recession. Nicola Marinelli of Glendevon King Asset Management in London stated: “An overhaul of the pension system was unavoidable because the old scheme was too generous compared to the country’s possibilities and the European standards… That said, the protest of these workers may be a harbinger of future social tensions. I don’t think the younger workers have really realized they will have starvation-level pensions.” Just another “cutting edge” facet of Monti’s reforms. Interestingly, though perhaps not surprisingly, Monti’s reforms had not yet included “a heavy hand with the richest taxpayers,” prompting a labor law professor to opine, “I think it’s about time for those who have more to contribute to the needs of the country.”[34] But such is not the nature of austerity.

In fact, in April it was reported that the political class in Italy, the “army of politicians and senior officials” who support Monti and his reforms in Parliament, “are clinging to fat salaries that far outstrip those of their peers abroad.” Monti had issued a decree which aimed to “prevent public servants earning more than U.S. President Barack Obama,” many of whom “earn considerably more.” Italy’s wealthy, however, not simply the top politicians and bureaucrats alone, “are hardly carrying their share of the burden.” One economist noted: “There has not been an equal distribution of sacrifices… In proportion to their salaries, higher incomes are paying less.” Italy has roughly 1,000 lawmakers across the nation, who earn more than their counterparts in the United States, with a base salary of 11,283 euros per month, while the lowest-earning households in Italy, “hurt most by rising fuel, property and sales taxes,” live “on less than 8,000 euros per year, or 667 euros per month, after taxes.” Between 2006 and 2010, Italy’s poorest families already lost almost 12 percent of their real income, according to data from the Bank of Italy. Unlike the political class, most Italian families are “traditionally thrifty,” however, under austerity in 2011, “households saved only 12 percent of their gross income, the lowest level since 1995.” That is the nature of austerity: when you need to save more than ever before, the ability to do so becomes harder than ever before. In March, a Moroccan worker in Italy set himself on fire in protest, and an Italian businessman did the same. Polls in Italy have shown that the people are “increasingly dissatisfied with the parties and politicians that led the country for the past two decades,” as more than 40% of respondents said that they wouldn’t vote for any of them if there were an election today.[35]

Italy Under Austerity

The Wall Street Journal reported in early April that figures from the Italian Treasury revealed that Monti’s austerity measures were “stunting activity in the euro-zone’s third-largest economy,” and while “recent tax increases are helping Italy cut its fiscal shortfall,” they are also “pushing economic activity to contract even faster.” Industry Minister Corrado Passera stated: “With austerity one doesn’t grow.” The majority of tax increases are on the income of workers, though they also include taxes on consumption (such as Value Added Taxes – VAT) and on property assets. As Italy’s GDP contracted by 1% in the first quarter of 2012, yields on Italian government bonds rose, making it more expensive for Italy to borrow. Former prime minister Berlusconi commented: “The cure that the European Union has prescribed for our country is the one that has already caused a disaster in Greece and is beginning to do so again in Spain,” though he continued to throw his support behind the technocratic government. One businessman in Italy warned that, “Consumers have insurmountable obstacles ahead of them, with higher income-tax rates from March, higher property taxes as of June and a value-added tax increase in September.”[36]

By late April, unemployment in Italy had reached nearly 10%, according to “official” statistics (meaning, it’s actually much higher), and in Sardinia, one in two young people were out of work. The construction industry in Italy has been hard hit, leading to one industry businessman killing himself, adding to a wave of “austerity suicides” across Italy, reaching 25 by April for the year of 2012.[37]

In May of 2012, the Italian anarchist group which had claimed responsibility for shooting a nuclear engineering firm chief threatened to target Mario Monti. The group, referring to itself as the Olga Nucleus of the Informal Anarchist Federation – International Revolutionary Front, sent a statement to a newspaper in southern Italy, warning that “Monti was among seven remaining targets after Roberto Adinolfi, chief executive of Ansaldo Nucleare, was shot in the leg last week.” The statement read: “We say to Monti that he is one of the seven remaining and that the people have no interest in staying in Europe, saving the banks and helping to balance the accounts of a state that squandered money for its own interests.” The statement explained that any suicide connected to tax difficulties brought about by the austerity measures would be punished as a “state murder.” This referred to a series of suicides in Italy by businessmen and others, “despairing at the collapse of their livelihoods because of the crisis.” It was the same anarchist group that in the previous year, claimed responsibility for sending letter bombs to several banks, including to Josef Ackermann, the CEO of Deutsche Bank, while the director-general of Equitalia in Italy lost a finger opening one of the letter bombs in December. One of the members of the group, facing prosecution in court, “called for armed revolution… when asked about the Adinolfi shooting.”[38]

Mario Monti had been pushing himself into European politics as a “mediator” between Germany and the weaker euro-zone economies, to seemingly “broaden” decision-making in Europe beyond the Franco-German axis. In the first few weeks of May, Monti’s technocratic administration had been “courting Berlin on two fronts,” trying to draw the parliaments of both countries closer together, and in term of ideology, they had been “trying to convince German officials – in both private meetings and public speeches – that the compromise solution to stoking growth in Europe’s weaker economies is investment in big public projects, such as transportation, Internet networks or electricity grids, while maintaining fiscal discipline.” Some spending, claimed Monti, should be “exempted” from fiscal austerity, something which Germany had long opposed. But with the French elections in early May getting rid of Nicolas Sarkozy and bringing in the Socialist President Francois Hollande, who favoured a strategy of spending on growth, Monti was seeking to find a common ground between Germany and France, but in a way that ultimately was supportive of the European Union, specifically. Nicholas Spiro, who heads a London-based sovereign debt consultancy, stated, “If there’s one European leader whose policies can appeal to both Chancellor Merkel and President-elect Hollande, it’s Monti.” The refined “growth” program promoted by Monti would be based on “creating bonds to fund European Union infrastructure projects and boosting the firepower of the European Investment Bank to fund public investments.” Thus, it would be based upon European spending, not individual nations spending, and so the debt would be pan-European, and controlled by the EU.[39]

In late April, Mario Monti announced that he would be making more cuts to spending by the end of the year, “and appointed an expert from the private sector as a special commissioner to oversee the spending review.” The cuts, amounting to some 4.2 billion euros (or $5.6 billion), “would allow him to avoid proceeding with a plan to raise the national sales tax to 23 percent in October from 21 percent, a move that could hurt consumer spending and slow a return to growth,” reported the New York Times. Monti stated, “Today we are faced with the necessity of making up for the time lost… And not in years, but in months.”[40] The new special commissioner from the private sector to review the process was Enrico Bondi, known as “Mr. Fix-it” for having successfully restructured the bankrupt Parmalat group. The change in austerity measures followed intense pressure from the business community in Italy to push the burden from increased taxation to more government spending cuts.[41]

In mid-May, yields on Italian debt jumped up to nearly 6%, as evidence emerged that Italy was sliding into an even deeper recession, brought on by Monti’s austerity measures and ‘structural adjustments.’ The government in Italy was openly discussing using troops to protect various targets after a wave of violent actions, claimed by various anarchist groups, such as the shooting of the nuclear industry executive, as well as petrol bombs being thrown at tax offices in early May. An Italian banker warned that unless the European Central Bank was converted into a lender of last resort, Italy faces “massive devaluation, three to five years of hyperinflation, and unbearable unemployment.” Moody’s ratings agency downgraded 26 Italian banks in May, evoking the anger of the Italian Banking Association, which called the downgrade, “irresponsible, incomprehensible, and unjustifiable,” and said it was “an attack on Italy, its companies, its families and its citizens.”[42]

Italy held a series of local elections in early May, in which the Italian comedian, Beppe Grillo, who is also leading a political party, the Five Star Movement, which “rode a wave of protest against austerity politics” and suggested, “We will see you in parliament.” Grillo had been increasingly critical of Monti’s tax hikes, and in one local election forced a run-off with the Democratic Party (PD), and managed to “trounce” Silvio Berlusconi’s Freedom People party in all the local elections, while the right-wing Northern League party, which has also criticized Monti’s reforms, “was humiliated at the polls.” The major Italian newspaper, Corriere della Sera, said, following the elections, “As of yesterday, it seems Monti is now more alone.”[43]

In mid-June, police in Italy, Switzerland and Germany arrested 10 people suspected of involvement in “leftwing terrorist activity” in Italy and elsewhere over the previous three years, connected to one of two organizations, the Informal Anarchist Federation (FAI) and the International Revolutionary Front (FRI). A general in Italy’s semi-militarized Carabinieri police force said that, “the two groups were in contact with the Greek anarchist movement.” The individuals who were arrested, however, were not suspected of being involved in the major act associated with the groups, the shooting of Roberto Adinolfi in Italy, though the General claimed, “The origin is the same.” The arrests did, however, include suspected involvement in the failed letter bomb sent to former Deutsche Bank CEO Josef Ackermann.[44]

In mid-June, as the G20 meeting unfolded in Mexico, Italian Prime Minister Mario Monti said that the euro area needs a “road map with concrete interventions to make the euro more stably credible,” as well as a “pro-growth plan,” stating, “the two things are strictly complementary.”[45] Even though Monti had imposed his brutal austerity measures upon the people of Italy, the bond rates for the country remained high, prompting Monti to comment, “There must be something wrong if a country that complies still has such high interest rates.” Monti noted that through the European Financial Stability Facility (EFSF), the European bail out fund, Italy had supplied loans to Greece, Ireland and Portugal amounting to 31.5 billion euros, commenting, “Italy has not until now asked for loans… She has made a lot of them and every day that passes, is in fact subsidizing others with the high interest rates she pays in the market.”[46]

In late June, following the G20 summit, Mario Monti announced a “growth decree” for Italy, which included “discount loans for corporate R&D [Research & Development], tax credits for businesses that hire employees with advanced degrees, and reduced headcount at select government ministries.”[47] Also in late June, Italy, Germany, France and Spain agreed to a “growth pact” for Europe with the total value of 130 billion euros ($163 billion), noting that, “austerity alone will not be enough to pull the euro zone out of its deep crisis.” The total sum represents 1% of the European Union’s GDP. Also envisioned are “project bonds” which would be financed through the EU’s budget, and issued “for private-sector infrastructure projects,” or in other words, corporate subsidies.[48]

At the end of June, it was reported that Italy’s economic crisis was deepening, due in large part to the austerity measures, but also as a result of the increasingly high yields (interest rates) on Italian bonds, as Italy had to pay the highest interest rates since December in a 5.24 billion euro auction of 5 and 10 year government bonds (meaning that the country pays high interest rates to the financial institutions which purchased these bonds until they expire in a 5-or-10 year term). The ten-year bonds sold at an average rate of 6.19 percent, while the five-year bonds were at an average rate of 5.84 percent. This, the Financial Times warned, “is the latest sign of a deepening double-dip recession in Italy and will add urgency to prime minister Mario Monti’s demands for short-term measures” to reduce interest rates (such as the ECB purchasing bonds on the market). An Italian business lobby, however, went on to praise the “huge steps, unthinkable only a year ago,” which were implemented by Monti’s technocratic government, though adding, “the process is far from being completed.”[49]

In late June, a bickering Italian parliament passed Monti’s labour reform package, just ahead of the EU summit. Angela Merkel said that Italy had “taken the road towards solid public finances, growth, jobs and competitiveness.” The reform of the labour market has been a major demand of the European Commission and the European Central Bank, and thus, Brussels praised the passing of the reforms, and even the IMF chimed in to cheer on Monti. The reform package was passed in parliament as protests led by the labour unions, took place outside, with police helicopters overhead and demonstrators clashing with security forces blocking the way to the parliament building.[50]

At the EU summit at the end of June, Italy and Spain forced leaders to remain at the summit overnight, forcing an agreement to restructure Spain’s 100 billion euro bank recapitalization plan (the Spanish bailout), allowing funds to be injected directly into banks in Spain, “meaning Madrid can sweep the burden of the bailouts off its sovereign books.” Though this, in turn, requires the “creation of a single banking supervisor to be run by the European Central Bank,” likely as a precursor to a European banking union. Italy also received concessions, though less than Spain received, yet was the main driving force behind the revised rules for the eurozone bailout fund – the EFSF (and later the ESM) – which would have it purchasing sovereign bonds in order to lower the borrowing costs, as it would increase confidence in Italian bonds and thus, lower the interest rates, Monti’s key demand in the previous months. The countries that have their bonds purchased by the bailout fund “will no longer be subject to Greek-style monitoring programmes,” but instead, “they would simply have to maintain their EU debt and deficit commitments.” Monti declared, “It is a double satisfaction for Italy.” For Angela Merkel, who had for months refused to support any short-term rescue measures, “the deal was a significant concession.” Though, of course, every concession comes with a condition: “a German-led group of northern creditor countries will gain more control over all of the eurozone banks through the new single supervisor,” the mechanism through which to establish the banking union.[51]

Upon this news, Spanish and Italian government bond yields fell sharply, with a Deutsche Bank economist commenting, “There was so little expectation and since there was a breakthrough at least on bank recapitalizations, the markets salute that.”[52] The German media reported that, “Italy and Spain broke the will of the iron chancellor by out-negotiating her in the early hours of Friday morning,” on June 29. Der Spiegel reported that, “Monti emerged from the late-night negotiations as a clear victor.” Merkel had to concede to Monti, and Spanish Prime Minister Mariano Rajoy, specifically on the issue of “demands” for the bailouts, as Merkel has been the reigning Queen of austerity. Faced up to Monti, however, the permanent European bailout fund – the European Stability Mechanism (ESM) – can loan to countries “which fulfill the budgetary rules laid down by the European Commission… without agreeing to tough additional austerity measures.” Thus, strict oversight by the troika – the European Commission, the European Central Bank, and the IMF – would no longer apply.[53]

Monti’s uprising at the summit began at 7:00 p.m. on Thursday evening, when European Council President Herman Van Rompuy wanted to conclude the first working session and announce the growth pact to the press. Monti, furious, asked Van Rompuy where he was going, and then refused to agree to the growth pact until resolving the issue of establishing “concrete measures to fight the high interest rates on Italian government bonds.” Spanish Prime Minister Rajoy supported Monti, adding that he could not support the growth pact either until such an issue had been resolved. Danish Prime Minister Helle Thorning-Schmidt asked if the attendees “were now all hostages,” and Van Rompuy remained seated. After midnight, representatives from the ten non-euro EU countries left for their hotel rooms, while the 17 eurozone countries “remained in their seats and began a decisive round of negotiations.” After a few hours, Monti and Rajoy convinced Merkel “that countries would in the future be able to receive funds from the ESM without having to submit to troika oversight.” Thus, “only the European Commission’s annual targets will have to be met.” The session ended at 4:20 a.m. on Friday morning, with European Commission President Barroso and Council President Van Rompuy announcing it at a press conference.[54]

This is not to say that austerity and structural adjustment would not be pursued, but simply that the ‘Troika’ (the EC, ECB, and IMF) monitoring and imposition of austerity would cede in favour of general targets set by the European Commission. Those targets, however, would still demand fiscal austerity and structural adjustment, but would not be subject to the same oversight or schedule with which the demands must be met. Ultimately, it was a deal that was not aimed at reducing the imposition and effects of austerity, but rather, was designed to institutionalize more effectively the domination of the European Commission itself (an unelected technocratic institution), as opposed to a more ad-hoc Troika system of oversight.

In the Italy of Mario Monti – and in the European Union at large – austerity is poverty, growth is plundering, labour reform is exploitation, and democracy… is Technocracy. Welcome to Italy, welcome to the new Europe in the age of austerity.

 

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 be finished by the end of summer:

 

Notes

[1]            Giuseppe Fonte, “Italy PM unveils sweeping austerity package,” Reuters, 4 December 2011:

http://www.reuters.com/article/2011/12/04/us-italy-idUSTRE7B20I220111204

[2]            Guy Dinmore and Giulia Segreti and Joshua Chaffin, “Monti cabinet agrees Italy austerity plans,” The Financial Times, 5 December 2011:

http://www.ft.com/intl/cms/s/0/ef821ec4-1dc8-11e1-9fd4-00144feabdc0.html#axzz1yY37v49b

[3]            Steve Scherer, “Italy starts strikes against Monti’s austerity,” Reuters, 12 December 2011:

http://www.reuters.com/article/2011/12/12/us-italy-austerity-strikes-idUSTRE7BB0O120111212

[4]            Gavin Jones, “Italy risks “social explosion” over austerity: union chief,” Reuters, 14 December 2011:

http://www.reuters.com/article/2011/12/14/us-italy-camusso-interview-idUSTRE7BD1EC20111214

[5]            Reuters, “Italian Senate backs Monti austerity package,” The Telegraph, 22 December 2011:

http://www.telegraph.co.uk/finance/financialcrisis/8973397/Italian-Senate-backs-Monti-austerity-package.html

[6]            “An interview with Mario Monti: Italy’s great liberaliser?” The Economist, 17 January 2012:

http://www.economist.com/blogs/newsbook/2012/01/interview-mario-monti

[7]            Nicholas Kulish, “Monti, in Berlin, Calls for Growth Policies in Europe,” The New York Times, 11 January 2012:

http://www.nytimes.com/2012/01/12/world/europe/italys-mario-monti-in-germany-calls-for-growth-policies-in-europe.html?pagewanted=all

[8]            Philip Stephens, “Europe rests on Monti’s shoulders,” The Financial Times, 26 January 2012:

http://www.ft.com/intl/cms/s/0/a209e0b2-4769-11e1-b847-00144feabdc0.html#axzz1yY37v49b

[9]            Guy Dinmore and Giulia Segreti, “Monti unveils liberalisation plans,” The Financial Times, 20 January 2012:

http://www.ft.com/intl/cms/s/0/b13df170-4392-11e1-adda-00144feab49a.html#axzz1z1dPgKJf

[10]            Guy Dinmore and Giulia Segreti, “Berlusconi to abandon frontline politics,” The Financial Times, 3 February 2012:

http://www.ft.com/intl/cms/s/0/65784254-4e6e-11e1-8670-00144feabdc0.html#axzz1yY37v49b

[11]            Martin Wolf, “Why the super-Marios need help,” The Financial Times, 19 January 2012:

http://www.ft.com/intl/cms/s/0/c608d3fa-4035-11e1-82f6-00144feab49a.html#axzz1yY37v49b

[12]            Peter Spiegel and Guy Dinmore, “The wishes and worries of a parenthetic revolutionary,” The Financial Times, 18 January 2012:

http://www.ft.com/intl/cms/s/0/faaef4aa-4101-11e1-b521-00144feab49a.html#axzz1z1dPgKJf

[13]            Ibid.

[14]            PBS, “Italy’s Premier Mario Monti: Time to Focus on Growth in Europe,” PBS Newshour, 7 February 2012:

http://www.pbs.org/newshour/bb/business/jan-june12/monti2intervie_02-07.html

[15]            Ibid.

[16]            Alessandra Gallioni, Christopher Emsden and Stacy Meichtry, “Italy Pushes for Europe Growth Policy,” The Wall Street Journal, 8 February 2012:

http://online.wsj.com/article/SB10001424052970204136404577209243247008110.html

[17]            Ibid.

[18]            Alessandra Galloni, Christopher Emsden and Stacy Meichtry, “Q&A With Mario Monti,” The Wall Street Journal, 7 February 2012:

http://online.wsj.com/article/SB10001424052970203315804577209341047730830.html

[19]            Alessandra Gallioni, Christopher Emsden and Stacy Meichtry, “Italy Pushes for Europe Growth Policy,” The Wall Street Journal, 8 February 2012:

http://online.wsj.com/article/SB10001424052970204136404577209243247008110.html

[20]            Ibid.

[21]            Michael Schuman, “The Most Important Man in Europe,” Time Magazine, 20 February 2012:

http://www.time.com/time/magazine/article/0,9171,2106489-1,00.html

[22]            Ibid.

[23]            Tiziana Barghini, “Wall Street likes Monti, but still wary of Italy,” Reuters, 13 February 2012:

http://www.reuters.com/article/2012/02/13/us-italy-economy-investment-idUSTRE81C1OP20120213

[24]            Tiziana Barghini and Walter Brandimarte, “Italy doesn’t need firewalls, Europe does: Monti,” Reuters, 10 February 2012:

http://www.reuters.com/article/2012/02/11/us-eurozone-monti-firewall-idUSTRE81A01820120211

[25]            Rachel Donaldio, “Stuck in Recession, Italy Takes on Labor Laws That Divide the Generations,” The New York Times, 19 March 2012:

http://www.nytimes.com/2012/03/19/world/europe/italy-tackles-labor-laws-that-divide-young-and-old.html?pagewanted=all

[26]            Ibid.

[27]            Ibid.

[28]            Cécile Allegra, “Child labour re-emerges in Naples,” Le Monde, 30 March 2012:

http://www.presseurop.eu/en/content/article/1722081-child-labour-re-emerges-naples

[29]            “Italy’s reforms: Monti’s labour-law tangle,” The Economist, 24 March 2012:

http://www.economist.com/node/21551046

[30]            WSJ, “Monti Pulls a Thatcher,” The Wall Street Journal, 26 March 2012:

http://online.wsj.com/article/SB10001424052702303816504577305240774653740.html

[31]            WSJ, “Surrender, Italian Style,” The Wall Street Journal, 5 April 2012:

http://online.wsj.com/article/SB10001424052702303299604577325902816241654.html

[32]            Mario Monti, “Italy’s Labor Reforms Are Serious and Will Be Effective,” The Wall Street Journal, 6 April 2012:

http://online.wsj.com/article/SB10001424052702303299604577327822449450802.html

[33]            Flavia Rotondi and Lorenzo Totaro, “Italians Rally in Rome Against Monti’s Pension-Revamp Gap,” Bloomberg, 13 April 2012:

http://www.bloomberg.com/news/2012-04-12/italians-rally-against-monti-s-pension-overhaul-limbo.html

[34]            Ibid.

[35]            Steve Scherer, “Analysis: Fat cat Italian politicians dodge Monti’s austerity,” Reuters, 11 April 2012:

http://www.reuters.com/article/2012/04/11/us-italy-politicians-idUSBRE83A0TD20120411

[36]            Christopher Emsden, “Italy Austerity Poses Threat to Economy,” The Wall Street Journal, 3 April 2012:

http://online.wsj.com/article/SB10001424052702304023504577321200213474194.html

[37]            Nick Squires, Italian businessman becomes country’s 25th ‘austerity suicide’ of the year,” The Telegraph, 30 April 2012:

http://www.telegraph.co.uk/news/worldnews/europe/italy/9236231/Italian-businessman-becomes-countrys-25th-austerity-suicide-of-the-year.html

[38]            Reuters, “Anarchists threaten Mario Monti,” The Financial Times, 16 May 2012:

http://www.ft.com/intl/cms/s/0/ffa158f4-9f7f-11e1-a255-00144feabdc0.html#axzz1yY37v49b

[39]            Stacy Meichtry and Marcus Walker, “Monti Seeks Mediator Role in Europe,” The Wall Street Journal, 10 May 2012:

http://online.wsj.com/article/SB10001424052702304543904577396363981261898.html

[40]            Gaia Pianigiani, “Monti Selects Areas to Cut to Reduce Italy’s Budget,” The New York Times, 1 May 2012:

http://www.nytimes.com/2012/05/02/business/global/monti-selects-areas-to-cut-to-reduce-italys-budget.html

[41]            Guy Dinmore and Giulia Segreti, “Italy to cut spending and avoid VAT rise,” Financial Times, 30 April 2012:

http://www.ft.com/intl/cms/s/0/3d85faf4-92eb-11e1-aa60-00144feab49a.html#axzz1z1dPgKJf

[42]            Ambrose Evans-Pritchard, “Italy’s banks shaken as economic slump deepens,” The Telegraph, 15 May 2012:

http://www.telegraph.co.uk/finance/financialcrisis/9268330/Italys-banks-shaken-as-economic-slump-deepens.html

[43]            Tom Klington, “Anti-austerity parties ride protest vote in Italian local elections,” The Guardian, 8 May 2012:

http://www.guardian.co.uk/world/2012/may/08/anti-austerity-italian-local-elections

[44]            John Hooper, “Italian police arrest leftwing terror suspects,” The Guardian, 13 June 2012:

http://www.guardian.co.uk/world/2012/jun/13/italian-police-arrest-terror-suspects

[45]            Christopher Emsden, “Monti Wants EU to Solve Own Problems,” The Wall Street Journal, 18 June 2012:

http://blogs.wsj.com/eurocrisis/2012/06/18/monti-wants-eu-to-solve-own-problems/

[46]            John Hooper, “Eurozone crisis: Mario Monti defends Italy’s record,” The Guardian, 22 June 2012:

http://www.guardian.co.uk/business/2012/jun/22/eurozone-crisis-mario-monti-italy?newsfeed=true

[47]            WSJ, “Employment, Italian Style,” The Wall Street Journal, 25 June 2012:

http://online.wsj.com/article/SB10001424052702304898704577478111174204768.html

[48]            Spiegel Online, “Merkel, Monti and Co. Agree to European Growth Pact,” Der Spiegel, 22 June 2012:

http://www.spiegel.de/international/europe/germany-france-italy-and-spain-agree-to-growth-pact-a-840495.html

[49]            Giulia Segreti, “Italy’s economic crisis deepens,” The Financial Times, 28 June 2012:

http://www.ft.com/intl/cms/s/0/668f816a-c106-11e1-8179-00144feabdc0.html#axzz1z1dPgKJf

[50]            Guy Dinmore, “Monti gets approval for labour reforms,” The Financial Times, 27 June 2012:

http://www.ft.com/intl/cms/s/0/8d2cf956-c070-11e1-9372-00144feabdc0.html#axzz1z1dPgKJf

[51]            Peter Spiegel and Joshua Chaffin, “Europe agrees crisis-fighting measures,” The Financial Times, 29 June 2012:

http://www.ft.com/intl/cms/s/0/5513d3d4-c19f-11e1-8eca-00144feabdc0.html#axzz1z1dPgKJf

[52]            Ana Nicolaci da Costa and Marius Zaharia, “EU summit moves push Italian, Spanish yields lower,” Reuters, 29 June 2012:

http://news.yahoo.com/eu-summit-moves-push-italian-spanish-yields-lower-164226104–finance.html

[53]            Carsten Volkery, “Monti’s Uprising: How Italy and Spain Defeated Merkel at EU Summit,” Der Spiegel, 29 June 2012:

http://www.spiegel.de/international/europe/merkel-makes-concessions-at-eu-summit-a-841663.html

[54]            Ibid.

 

The Maple Spring and the Mafiocracy: Struggling Students versus “Entitled Elites”

The Maple Spring and the Mafiocracy: Struggling Students versus “Entitled Elites”

By: Andrew Gavin Marshall

It says a great deal about our society when hundreds of thousands of students – already largely indebted, a significant portion of whom live well below the poverty line, who already work what few jobs exist for a generation forgotten before we leave home – take to the streets in protest and are portrayed as “entitled”, “spoiled brats” as they attempt to “negotiate” their very chance of having a future in this society… with a government that supports and works with organized crime, which is beholden to an economic elite, and which supports only those who can already support themselves.

There is something deeply wrong with a society in which students who struggle for a very chance in life are insulted, degraded, beaten, arrested, humiliated and denigrated. First, we were told for years that we were “lazy” and “apathetic”: Generation MTV, Generation iPod, a techno-savvy but reality-detached deluge of pseudo-humanoids. We were seen as concerned only with ‘self’, worshipping of wealth, and with celebrities like Paris Hilton and whatever Car-crashian disaster is on reality TV this week, who could blame people for thinking this? Our media raised us. Television raised us. Advertising raised us. Public relations agencies raised us. They have told us what to wear, how to behave, what to drink, what to eat, what to listen to, dance to, sing to, who to speak to, who to admire, who to hate, what to spend time thinking about, what to be concerned about, what and how to think and be. We were set up to be Generation Obscurity.

But then, something changed: our circumstances.

For those of us who grew up middle class, we started to have a harder time getting by. We worked while we were in high school, but that was okay, the extra money was nice. But then we graduated and it was time to begin our lives. So we either worked full time, or went to school, and probably work part-time. School is expensive, and whether you live in Quebec, the rest of Canada, the United States, or a great host of many other places, school is more expensive for us than it was for our parents. Our minimum wage might seem higher, but the cost of living has soared since our parents were getting their first few jobs, so in real terms, we earn much less. So we lived and often continue to live at home while we go to school or even while we work. With rent so high, and cities so expensive, who can afford their own space in this crazy kind of place? School was still too expensive, even as we worked and as our parents helped however they could. After all, they were and are struggling too. So we got student loans. And now we’re deep in debt.

Suddenly, our world was thrown into a deep economic crisis. Most of us don’t know how this came to be, or who is responsible, all we know is that we only did what we were told to do: consume. And what did that do for us? We’re in debt. All we know is that even though we didn’t cause this global crisis, we are being held responsible for it. All we know is that we are told we are in a “recovery,” but we don’t feel like it. How many people truly feel more financially secure now than they did in 2007? Do you? I don’t!

But now we are told that we are in a “recovery” because those who caused the economic crisis are doing much better. In fact, many of them are doing better than ever! During the crisis, our government’s said we had to “bail out” the banks that had colluded with the governments to create the crisis in the first place. We were scared, so we sat back and watched as our governments gave banks blank checks. First, I should add, our governments worked with the banks in passing (or dismantling) laws and regulations, implemented policies, undertook joint programs, spent enormous sums of money between them, as our political leaders left office to sit in bank boardrooms, and as bankers left the private vaults to the public treasury. This relationship between big business, big banks, and big government (most emblematic in the central banking system, in which private banks with public powers control the very value of our currencies), is what created the economic crisis. And when that crisis erupted, those same governments gave those same banks more money than ever before, to ensure that they were rewarded for creating such a massive global crisis. At the same time, the governments then gave themselves even more power over the economy and their own social and political environments, all the while ensuring that the banks and corporations were involved in every decision, and would benefit from every outcome. So those who caused the crisis rewarded themselves with more money and more power than they had when they created the crisis in the first place.

At the same time, we, the people, have to pay for everything. We have to pay with increased taxes (remember, that bailout money has to come out of YOUR pockets), with rising prices for food and fuel, with inflated property prices (if they weren’t already collapsing, in which case, we face potential foreclosure), with increased debt – not even to consume, but simply to subsist – with decreased jobs, with unemployment, with increased homelessness, increased reliance upon food stamps, increased welfare and state assistance (which comes with intense scrutiny of your personal finances and life), and now, with austerity: further tax increases, less social services and support, mass layoffs and pay-cuts, decreased support for health care and education, increased tuition, and increased struggles. But remember, we have to suffer under austerity so that our governments can pay for all the rewards they gave to the banks for… making us suffer.

This is called “Capitalism.”

Now, take Canada as an example. Canada is perhaps the best example to use in this situation because, let’s face it: we have one of the better “reputations” among Western nations of the world (though largely undeserving), we are seen as peaceful (though we are now always at war), and compared to the rest of the industrialized West, we fared through the economic crisis much better than most. Our banks, in fact – with five Big Banks that dominate the economy – are consistently rated as among the world’s “strongest banks.” In April of 2012, Moody’s Investors Service rated Canada’s banks as the “safest in the world.” And we better believe Moody’s, because they failed to predict the economic crisis itself, and as their CEO even admitted when questioned about the agency being funded by Wall Street firms, “potential conflicts exist regardless of who pays.” For four years in a row, the World Economic Forum has rated Canada’s banking system as the most sound in the world. Even the Canadian Bankers Association praises Canada’s banks. Imagine that!

Unfortunately for their self-congratulations, it was recently revealed that Canada’s banks actually received a “secret bailout” in 2008, for a total of $114 billion, or $3,400 for every Canadian man, woman, and child. The bailouts took place between 2008 and 2010, funded by the Bank of Canada, the United States Federal Reserve, and the Canada Mortgage and Housing Corp. The government continues to deny it gave the banks a bailout, instead, our Finance Minister insists, it was just “liquidity support,” which means… the government did not “bail out” the banks with public money, it just gave the banks public money… in “support.” Call it what you will, they gave them $114 billion. Mark Carney, the Governor of the Bank of Canada (our central bank), and a former executive with Goldman Sachs (what’s not to love?), even admitted that the Bank of Canada gave tens of billions of dollars to our private banks. The U.S. Federal Reserve provided $33 billion to Canada’s big banks, while the official numbers of what the Bank of Canada provided remain a “secret,” as the government has refused to respond to Access to Information requests on the subject. Available information, however, points to $41 billion given to our banks by the Bank of Canada by December of 2008. Even some foreign banks had access to money from the Bank of Canada. Thus, Canada’s big five banks – Royal Bank of Canada, T.D. Bank, Scotiabank, the Bank of Montreal and CIBC – received collectively over $114 billion in “bailouts.” Oh, excuse me, I mean, “liquidity support.” And now, these same banks have inflated a major housing bubble in Canada which is eerily similar to that which existed in the United States in 2007, with housing prices dangerously high, and the average household debt at $103,000. But don’t worry, these big five banks made “record profits” in 2011. So naturally, with record profits for banks, and record debt for Canadians, the banks have decided to increase their fees on you! And then their profits continued to increase! Naturally, the executives have been giving themselves bigger bonuses than ever.

This is called an “economic recovery.”

And remember, it’s the students in Québec who are “entitled.” People call the students “spoiled” and “entitled” because they pay less than $2,500 for tuition every year, and are trying to prevent a situation in which they will be paying roughly $4,000 per year. But the big banks, making record profits, got the equivalent of $3,400 from every single man, woman, and child in Canada. But that’s not called “entitlement,” that’s called Capitalism.

So, the banks are doing better than ever, and this means we are in a “recovery.” According to our governments and media, it doesn’t matter what situation you are in, only what situation RBC, CIBC, BMO, Scotiabank and TD are in. Starting in the year 2000, Canada’s corporations and banks started having their taxes cut significantly by the government, whether Liberal or Conservative. In 2000, corporate taxes were at 28%, and by 2006 it was at 21%. In the beginning of 2012, corporate taxes in Canada were at 15%. This was all, of course, done to create “jobs.” That is, after all, what we were told by our politicians who insisted it was the right thing to do. At the moment, Canada has a rather significant unemployment rate, and a much higher youth unemployment rate. In 2006, the unemployment rate for Canadians was 4.6%, and today it is at 7.3%. In 2006, the unemployment rate for Canadian youth between the ages of 15 and 24 was at 8.4%, but by 2012, that has increased to 13.8%. In the same period of time, corporate taxes were cut from 22% to 15%, with the stated purpose of creating “jobs.” Now, the unemployment numbers are themselves misleading, because they only actually refer to those who are on some form of government assistance, such as welfare or employment insurance. The rest of the unemployed are not counted. While the corporate tax cuts did not lead to more jobs, but rather, less… they did lead to more money for the corporations and banks. By 2011, Canadian corporations and banks had hoarded $477 billion in cash reserves as money that was saved from taxation. For every percentage decrease in corporate taxes, the government loses $2 billion in potential revenue. In response, the government turns to austerity measures, which means that you have to suffer and pay for everything, especially your own poverty. Poverty is, after all, very expensive.

In 2012, these record profit-making corporations are getting an extra $2.85 billion in additional income tax savings. Even as Stephen Harper cut the taxes further, he acknowledged that the corporations weren’t actually investing their saved money in “jobs” but that it was just “money sitting on the sidelines.” Since 2007, the cash reserves of Canada’s corporations have grown by 27.3%, reaching $583 billion in Canadian currency, and $276 billion in foreign currencies. So what can we conclude from this? Well, when politicians and corporations and banks say that they are pursuing a particular policy to create “jobs,” what they really mean is to create “profits.” So when a politician says, “We need to cut corporate taxes so that they can invest in jobs,” what is really being said is that, “We need to cut corporate taxes so that they can make profits.” This makes more sense, because this is what actually happens. So it’s not so much that politicians lie, but rather that they just speak a different language. So take note, and I guarantee this is a very accurate method, in political-speak: “jobs” = “profits.” So now when you listen to your [s]elected officials blather on, you’ll actually be able to understand what they are saying.

Oh, and in case you forgot, remember: it’s Québec students who are “entitled” and “spoiled brats.” Just making sure you remember that.

In Canada, we have a situation in which total national student debt is at $20 billion, and with tuition increases, this too will increase dramatically. But don’t worry, increased tuition costs and increased student debt is good for the banks, because they provide a lot of the loans and own the debt, and collect the interest and keep you in their pockets for the rest of your life. And remember, if the banks are doing well, the economy is doing well. You don’t matter… at all. Okay, so total student debt in Canada is at $20 billion, with the average student graduating with $27,000 in debt, few job prospects, high unemployment rates, and in a major social and economic crisis, but the Canadian government is buying 65 F-35 fighter jets from the U.S. military contractor, Lockheed Martin, worth a total of $25 billion. So, we can bail out our banks to the tune of $114 billion, and we can spend $25 billion buying military machines to go bomb and kill poor people around the world, but students shackled with $20 billion in debt must be shackled with more. And if they try to do anything about the increases in tuition, and thus, the increases in their debt, Canadian politicians and the media refer to them as “entitled,” “spoiled brats.”

Here are a few numbers to show the current divide between the rich and everyone else in Canada, what we are told is a hallmark of a flourishing democracy and recovering economy:

- the 100 best paid CEOs made an average of $6.6 million, which is 155 times the average wage for Canadians at $42,988

- the tax rate for the richest Canadians dropped from 43% in 1981 to 29% in 2010

- in Quebec, the richest 10% made 24% more in 2006 than in 1976, while the poorest made 10% less

- with average student debt in Québec at $13,000 and $27,000 in the rest of Canada, the cost of “free education” in Québec would be less than 1% of the government’s budget

- for every $1,000 fee hike in tuition, the proportion of poor students drops by 19%, thus making education inaccessible for poor people

- with youth unemployment in Canada between 14-20%, and total student debt amounting to $20 billion, the percentage of students defaulting on government loans is at 14%

- the percentage of Canadians between 20 and 24 living with their parents is 73%

- the percentage of Canadians 25 to 29 living with their parents is 33%

This is called “democracy.”

With Jean Charest as Québec’s premier, attempting to nearly double student tuition from an average of over $2,000 to nearly $4,000, it might be interesting to look at what Charest paid for his education. Charest studied in Sherbrooke in the late 1970s, where he would have paid $500 for tuition, less than $2,000 in today’s dollars. In 1978, the minimum wage (for those students who needed to work to pay their tuition) in Québec was $3.50/hour. In today’s dollars, that would equal $12/hour, while the actual minimum wage in Québec today is $10/hour. Therefore, wrote McGill University professor Michael Hilke, “it was easier for students to pay for college back then.” But Charest calls us “entitled.”

In point 7 of my article, “Ten Points Everyone Should Know About the Quebec Student Movement,” I provided sources and information regarding the deeply interconnected relationship between the government of Québec, especially with Charest’s Liberal Party in power, the corrupt construction industry, and the Mafia. Politicians, especially the Liberal Charest government currently in power, provide over-estimated public funds to the construction industry to do what costs significantly less in other provinces, and to build bridges and roads that fall apart, and it just so happens that the construction industry is owned by the Mafia. While public contracts are not the main source of revenue for the Mafia (who can compete with illicit drugs? … well, except for the oil and arms industries), getting massively over-estimated public funds allows the Mafia-connected construction businesses to throw fundraisers for the politicians and keep them in power. Thus, the interaction between the Mafia and the government is a mutually beneficial relationship, where money flows back and forth, designed to keep each party in power. But it’s unfair to blame Charest and the Liberal Party for collusion with the Mafia; they are simply carrying on a long political tradition of governments working with organized crime. So, the government supports organized crime and opposes organized students. Ultimately, both organized crime and organized polities serve the same interests. Can you guess whose? I’ll save you the effort, it’s really quite simple, and it’s not exclusive to Canada, this is a global phenomenon: follow the money.

Canada is a market leader in many aspects of the global trade in illegal drugs. In a 2009 report form the UN Office on Drugs and Crime, Canada was revealed to be the leading supplier of ecstasy to North America, and one of the world’s major producers and shippers of methamphetamine for various markets around the world, which is so significant that it was revealed that 83% of all the meth seized in Australia came from Canada, whereas in Japan it was 62%. In 2006, only 5% of the meth produced in Canada was exported. In 2007, it was at 20%. That’s pretty impressive! In 2007, 50% of the ecstasy produced in Canada was exported, primarily to the United States, Australia, and Japan. In 2007, Canada was identified by Japan as the largest single source for seized ecstasy tablets, followed by the Netherlands, Germany, and Belgium. But it’s not Canada’s fault, we are simply partaking in an already well-established global drug trade, the most profitable trade in the world following oil and arms.

This of course is a result of our governments having undertaken prohibition against illicit drugs, just as the United States had done with alcohol, which history shows, didn’t work very well. Alcohol prohibition gave an incredible boost to the Mafia and organized crime in the United States and elsewhere, and of course, included in its silky spider web were corrupt cops, politicians, and financiers. When something is “illegal” it becomes far more expensive, and thus, far more profitable. So our governments have decided to continue their policies of prohibition for illicit drugs: to keep profits up, to support organized crime, to participate in organized crime, to keep the money flowing, keep the prisons full, and to declare a mythical “war on drugs” which accomplishes nothing but further militarization designed to wipe out the competition. So Latin American countries must suffer under our increased military and repressive presence. A few months prior to the NATO invasion and occupation of Afghanistan in 2001, the Taliban had eradicated the opium trade in one year, wiping out the world’s largest opium crop. Following the invasion in October of 2001, and the installation of a puppet president Hamid Karzai in December of 2001, the new Afghan government began colluding with drug lords and opium production began to accelerate. In fact, the drug trade in Afghanistan reaches record highs nearly every year since the invasion. Between 2011 and 2012, opium production in Afghanistan increased by another 61%. In 2009, the New York Times reported that one of Afghanistan’s most powerful drug lords was the brother of Afghan President Hamid Karzai, and that he also happened to be working for the CIA at the same time. The CIA has a sordid history with the drug trade, from Indochina in the 1960s, to Afghanistan and the Iran-Contra affair in the 1980s. More recently, in 2007 there was an under-reported incident in which a CIA plane which had been used for rendition flights (i.e., kidnapping and torture) had crashed in Mexico with 3.3. tones of cocaine on board, carrying Colombian cocaine for the major Mexican drug cartel, the Sinaloa cartel.

Since 2006, the government of Mexico has been waging a massive “drug war” against several of the large drug cartels in the country. This war has been financially and materially supported by the U.S., which has been providing arms, equipment, and intelligence assistance to the Mexican army. The war has been incredibly violent, and widely under-reported in our media north of Mexico. From 2006 to 2011, there were between 45-60,000 deaths related to the drug war. In 2009, the Mexican drug lord – Joaquin “El Chapo” Guzman Loera – who heads the largest drug cartel, the Sinaloa cartel, made Forbes’ billionaires list. Journalists in Mexico who cover the war repeatedly get tortured and murdered. Within a six-month period in 2010, more than 11,000 migrants were abducted by drug cartels, either to extort money or to be used as forced labour. An investigative report by NPR in 2010 revealed a deeper and darker side of the story: the war is “rigged.” As the United States gives billions of dollars to Mexico in military and judicial aid, the Mexican government works to support the Sinaloa cartel by destroying the competition. Testimony of top Sinaloa cartel traffickers in court revealed further links between the cartel and the Mexican army. Whether through bribes or other means, including the major participants themselves passing from high-ranking police and military positions directly into the cartels, the relationship between the Mexican government and the cartels, especially the Sinaloa cartel, runs deep. The drug trade through Mexico, which is heavily implicated in bringing cocaine from Colombia to the United States, produces profits of tens of billions every year. Even a top Mexican army general and a former deputy minister of defense have now been implicated in ties to drug cartels, something which is not new in Mexico.

A small scandal emerged for the United States government in 2011 when it was revealed that a U.S. operation “allowed weapons from the U.S. to pass into the hands of suspected gun smugglers.” Codenamed Operation Fast and Furious, it was run by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which admitted “that 1,765 guns were sold to suspected smugglers during a 15-month period of the investigation.” A gun dealer in Arizona reported that he was concerned that his guns were being sold to drug cartels, fuelling the violence that has now killed over 55,000 people, and when he expressed these fears, he “was encouraged by federal agents to continue the sales.” Internal emails released from the ATF revealed that the bureau’s top officials were regularly briefed on the gun-running operation. It was later revealed that many Mexican drug cartel figures who were being targeted by the ATF also happened to be “informants” for the FBI and the Drug Enforcement Agency (DEA), who kept the ATF “in the dark” about their relationship with the cartels. At least six Mexican drug cartel figures were also on the payroll of the FBI. Some ATF agents have blown the whistle on the operation, stating that it went back as far as 2008, and that they were “ordered to let U.S. guns go to Mexico.” Memos from 2010 revealed that several top U.S. officials in the Department of Justice, including Attorney General Eric H. Holder Jr, regularly received updates about the operation. Three National Security officials in the White House also received updates. One of Mexico’s top drug traffickers, the right-hand man of the leader of the Sinaloa cartel, claimed in court testimony that he “was working all along as a confidential informant for U.S. agents,” specifically for the U.S. Drug Enforcement Agency (DEA). U.S. weapons smuggling to Mexico is no small operation, as roughly 70% of the weapons seized in Mexico came from the United States.

In Congressional testimony, an ATF agent reported that the ATF was working on Operation Fast and Furious in cooperation with the DEA and the Internal Revenue Service (IRS). To add to that, an insider at the CIA revealed that the Central Intelligence Agency (aka: the Cocaine Import Agency), “had a strong hand in creating, orchestrating and exploiting Operation Fast and Furious.” Over fears that the Zetas cartel could totally usurp control of the Mexican government, the CIA reportedly intervened in support of the Sinaloa cartel, with its close ties to the Mexican military. In a report with the Washington Times, it was revealed that the CIA would allow the Sinaloa cartel to smuggle cocaine into the United States on a 747 cargo plane, and in turn, the CIA approached the ATF to create Operation Fast and Furious, ensuring that the trade “wasn’t one-way,” so that arms were funneled into Mexico from the U.S. as drugs were funneled into the U.S. from Mexico, all with CIA support. Meanwhile, according to the New York Times, undercover DEA agents were laundering millions of dollars in drug money for the Mexican cartels in the United States.

Within Mexico, the drug money spreads all across the economy, into skyscrapers, casinos, beach resorts, restaurants, the construction industry, and of course, political campaigns. But the 55,000 deaths in Mexico in the past six years have been good for the United States, particularly for gun sales and big banks. In fact, internal investigations revealed that Wachovia Bank, now a part of Wells Fargo, one of the largest banks in the United States, laundered billions of dollars in drug money for Mexican cartels, even as they were receiving bailout money from the United States government. It was not only Wachovia, but also Bank of America that has been implicated in laundering Mexican drug money, worth up to $378.4 billion. Other banks have been implicated as well, in both the United States and Europe. The UN revealed in 2009 that drug money actually saved the major banks, as roughly $352 billion in drug money was absorbed into the financial system during the worst of the economic crisis in 2008.

So what do we make of all this?

We are told that this is called “democracy” and a “strong economy.” We are told that this is the “best system in the world,” which benefits everyone… just not you.

I prefer to use another word to describe it: Mafiocracy.

Now, I did not come up with this word, but it applies, and I can think of no better word to describe the relationship between big business, big banks, government and organized crime. So we are faced with a Mafiocracy, whether in Afghanistan, Colombia, Mexico, the United States, or even in Québec. With collusion so deep and embedded between organized crime, state agencies, politicians, and financiers, it’s almost problematic to refer to organized crime as somehow separate, since it isn’t. So let’s call it what it is: a Mafiocracy. A local Mafiocracy, such as the one which exists in Québec between the local Mafia, the local government, and the local economic elite, is inter-related with the global Mafiocracy, atop of which sit the Kings of Capital and the High Priests of Globalization. We are in the age of Globalization, and the Mafiocracy has been significantly globalized and energized. As the Mafiocracy gets stronger, democracy gets weaker, until it is altogether gone and dead, without even a memory remaining.

The first time I heard the term “Mafiocracy” was in an incredible documentary about Argentina, entitled, “Social Genocide,” covering the country’s recent history of military dictatorships supported by the U.S., followed by the age of neoliberalism with liberal democratic governments more corrupt than the dictatorships that preceded them, with an elite so extravagant it would be almost comically-absurd if it wasn’t so disturbing. The film documents the relationship between democratically-elected leaders, narco-trafficking, organized crime, international terrorism, Western banking institutions, the IMF and World Bank, corruption feeding off of the national debt, the privatization of public wealth, and all the while demanding the population pay for the Mafiocracy through austerity and “structural adjustment,” what is translated in real terms into “Social Genocide.” When the people stood up in December of 2001, Argentina’s president declared a state of siege, which was responded to by the population who took their pots and pans out into the streets across the country and to the Plaza de Mayo in Buenos Aires, and they banged their pots and pans in the midst of police confrontations that killed 26 people, eventually forcing the president to flee from the city by helicopter. The Mafiocracy demanded the people suffer for its own excesses, for its wealth and power, and imposed a rigid, organized, structured and systematic program of “Social Genocide”: what economists, politicians and pundits refer to as “fiscal austerity” and “structural adjustment.” The people took their pots and pans into the streets and said ‘No More!”

Sound familiar?

For more than 100 days, hundreds and thousands of students in Québec have been on strike against a plan to increase tuition by roughly 75%. The Mafiocracy government, after two months of refusing to speak to the students and instead used state violence and repression against them, finally agreed to sit down and talk in April. They then cancelled the negotiations and threw out a new “proposal” which would actually increase the tuition hike. Obviously, this insulting gesture was rejected. Then there were other negotiations in early May, while the riot police were outside nearly killing a few students by shooting them in the face and head with rubber bullets, the government pressured the student leaders to sign a sham of an agreement, with extra pressure coming from the major union leaders, who only exist today because of their willingness to engage and collude with the Mafiocracy – particularly the government and big business – and so they told the students it was the best deal they would get. The deal did not include a decrease in the tuition increases. This entire process has taken place in the midst of a national media campaign against the student movement, which increased and evolved into a social movement, an anti-austerity movement, and at times, even a small rebellion against the Mafiocracy. The media framed the striking students as “spoiled brats” who were “whining and crying” about a loss of “entitlements.” The latest negotiations broke down last week. Why? Because after four days of negotiations, the only “compromise” the government engaged in, was to agree to reduce the overall tuition increases by $1. Yes, you read correctly: ONE DOLLAR.

This is what it means to negotiate with a Mafiocracy.

But the students continue to march, continue to inspire, and the movement – the Maple Spring – continues to expand beyond the students, far beyond the issue of tuition, and far beyond Québec. People walk through the streets, every day and every night, in defiance of a law passed by the Mafiocracy government which criminalized spontaneous protests. People step outside and bang their pots and pans, walk through the streets, through rain storms and sun shine, hot or cold. People are aware that they could again be pepper sprayed, tear gassed, smoke bombed, beaten with batons, trampled with horses, driven into with cars, shot with rubber bullets, or arrested en masse. But still, they go. And across Canada, and in fact, far beyond, people are taking their pots and pans and stepping out into their streets in solidarity.

Remember that description we once heard for the system of government we were supposed to be living under: “of, by, and for the people”? Is that the Mafiocracy? We were a generation reviled for our trivial technological obsessions, entertainment enslavement, and absolute apathy. So we defy those stereotypes and step out into the streets, day after day. We are no longer apathetic, and now we are called “spoiled” and “entitled.” But that’s okay; people – especially those in power, who speak through the media – always fear what they do not understand. Now the social gatherings of youth are not necessarily at bars and clubs, but in protests and casseroles (marching with pots and pans). Regardless of the outcome, we have come to realize that we are a powerful force when united, that we have to physically, intellectually, and emotionally put ourselves on the line to struggle for what is right. We realized that when our options are to either suffer or struggle, the choice is easy. We have a long way ahead of us, we struggle, we persevere, we protest, we push, we persist, we have not yet prevailed, but we are linking up with people – especially youth – across Canada and around the world. We are using the technology which in one sense had enslaved us to obscurity and apathy, and are now using it to mobilize and organize more than ever before.

We have taken the first steps which are required in a global struggle of people against a global Mafiocracy. We follow in the footsteps of those who have walked before us, whether they are in Egypt, Tunisia, Greece, Spain, Iceland, or Chile. They cannot fight our fight for us, but we can all fight together. Our struggle is global, though we may experience it in the local. With every step forward, we realize the global implications of what we are starting to do, and the world is starting to watch. The people are waking up, walking out, and trying to reshape society so that it does not simply benefit the few at the expense of the many.

This is called Democracy.

 

For more information on the ‘Maple Spring’, see:

The Québec Student Strike: From ‘Maple Spring’ to Summer Rebellion?

What Really Happened at the Montréal May Day Protest? From Peaceful Protest to Police Brutality

Ten Points Everyone Should Know About the Quebec Student Movement

From the Chilean Winter to the Maple Spring: Solidarity and the Student Movements in Chile and Quebec

Quebec Steps Closer to Martial Law to Repress Students: Bill 78 is a “Declaration of War on the Student Movement”

Writing About the Student Movement in Québec: You’re Damn Right I’m “Biased”! … Confessions of a Non-Neutral Observer

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.

Ten Points Everyone Should Know About the Quebec Student Movement

Ten Points Everyone Should Know About the Quebec Student Movement

By: Andrew Gavin Marshall

The student strikes in Quebec, which began in February and have lasted for three months, involving roughly 175,000 students in the mostly French-speaking Canadian province, have been subjected to a massive provincial and national media propaganda campaign to demonize and dismiss the students and their struggle. The following is a list of ten points that everyone should know about the student movement in Quebec to help place their struggle in its proper global context.

1)            The issue is debt, not tuition

2)            Striking students in Quebec are setting an example for youth across the continent

3)            The student strike was organized through democratic means and with democratic aims

4)            This is not an exclusively Quebecois phenomenon

5)            Government officials and the media have been openly calling for violence and “fascist” tactics to be used against the students

6)            Excessive state violence has been used against the students

7)            The government supports organized crime and opposes organized students

8)            Canada’s elites punish the people and oppose the students

9)            The student strike is being subjected to a massive and highly successful propaganda campaign to discredit, dismiss, and demonize the students

10)            The student movement is part of a much larger emerging global movement of resistance against austerity, neoliberalism, and corrupt power

1)            The issue is debt, not tuition: In dismissing the students, who are striking against a 75% increase in the cost of tuition over the next five years, the most common argument used is in pointing out that Quebec students pay the lowest tuition in North America, and therefore, they should not be complaining. Even with the 75% increase, they will still be paying substantially lower than most other provinces. Quebec students pay on average $2,500 per year in tuition, while the rest of Canada’s students pay on average $5,000 per year. With the tuition increase of $1,625 spread out over five years, the total tuition cost for Quebec students would be roughly $4,000. The premise here is that since the rest of Canada has it worse, Quebec students should shut up, sit down, and accept “reality.” THIS IS FALSE. In playing the “numbers game,” commentators and their parroting public repeat the tuition costs but fail to add in the numbers which represent the core issue: DEBT. So, Quebec students pay half the average national tuition. True. But they also graduate with half the average national student debt. With the average tuition at $5,000/year, the average student debt for an undergraduate in Canada is $27,000, while the average debt for an undergraduate in Quebec is $13,000. With interest rates expected to increase, in the midst of a hopeless job situation for Canadian youth, Canada’s youth face a future of debt that “is bankrupting a generation of students.” The notion, therefore, that Quebec students should not struggle against a bankrupt future is a bankrupted argument.

2)            Striking students in Quebec are setting an example for youth across the continent: Nearly 60% of Canadian students graduate with debt, on average at $27,000 for an undergraduate degree. Total student debt now stands at about $20 billion in Canada ($15 billion from Federal Government loans programs, and the rest from provincial and commercial bank loans). In Quebec, the average student debt is $15,000, whereas Nova Scotia and Newfoundland have an average student debt of $35,000, British Columbia at nearly $30,000 and Ontario at nearly $27,000. Roughly 70% of new jobs in Canada require a post-secondary education. Half of students in their 20s live at home with their parents, including 73 per cent of those aged 20 to 24 and nearly a third of 25- to 29-year-olds. On average, a four-year degree for a student living at home in Canada costs $55,000, and those costs are expected to increase in coming years at a rate faster than inflation. It has been estimated that in 18 years, a four-year degree for Canadian students will cost $102,000. Defaults on government student loans are at roughly 14%. The Chairman of the Canadian Federation of Students warned in June of 2011 that, “We are on the verge of bankrupting a generation before they even enter the workplace.” This immense student debt affects every decision made in the lives of young graduates. With few jobs, enormous housing costs, the cutting of future benefits and social security, students are entering an economy which holds very little for them in opportunities. Women, minorities, and other marginalized groups are in an even more disadvantaged position. Canadian students are increasingly moving back home and relying more and more upon their parents for support. An informal Globe and Mail poll in early May of 2012 (surveying 2,200 students), “shows that students across Canada share a similar anxiety over rising tuition fees” as that felt in Quebec. Roughly 62% of post-secondary students said they would join a similar strike in their own province, while 32% said they would not, and 5.9% were undecided. In Ontario, where tuition is the highest in Canada, 69% said they would support a strike against increasing tuition. A Quebec research institution released a report in late March of 2012 indicating that increasing the cost of tuition for students is creating a “student debt bubble” akin to the housing bubble in the United States, and with interest rates set to increase, “today’s students may well find themselves in the same situation of not being able to pay off their student loans.” The authors of the report from the Institut de recherche et d’informations socio-economique explained that, “Since governments underwrite those loans, if students default it could be catastrophic for public finances,” and that, “If the bubble explodes, it could be just like the mortgage crisis.” In the United States, the situation is even worse. In March of 2012, the Federal Reserve reported that 27 percent of student borrowers whose loans have gone into repayment are now delinquent on their debt.” Student debt in the United States has reached $1 trillion, “passing total credit card debt along the way.” It has become a threat to the entire existence of the middle class in America. Bankruptcy lawyers in the US are “seeing the telltale signs of a student loan debt bubble.” A recent survey from the National Association of Consumer Bankruptcy Attorneys (NACBA) indicated, “more than 80 percent of bankruptcy lawyers have seen a substantial increase in the number of clients seeking relief from student loans in recent years.” The head of the NACBA stated, “This could very well be the next debt bomb for the U.S. economy.” In 1993, 45% of students who earn a bachelor’s degree had to go into debt; today, it is 94%. The average student debt in the United States in 2011 was $23,300, with 10% owning more than $54,000 and 3% owing more than $100,000. President Obama has addressed the situation by simply providing more loans to students. A recent survey of graduates revealed that 40% of them “had delayed making a major purchase, like a home or car, because of college debt, while slightly more than a quarter had put off continuing their education or had moved in with relatives to save money,” and 50% of those surveyed had full-time jobs. Between 2001 and 2011, “state and local financing per student declined by 24 percent nationally.” In the same period of time, “tuition and fees at state schools increased 72 percent.” It would appear that whether in the United States, Canada, or even beyond, the decisions made by schools, banks, and the government, are geared toward increasing the financial burden on students and families, and increasing profits for themselves. The effect will be to plunge the student and youth population into poverty over the coming years. Thus, the student movement in Quebec, instead of being portrayed as “entitled brats” elsewhere, are actually setting an example for students and youth across the continent and beyond. Since Quebec tuition is the lowest on the continent, it gives all the more reason that other students should follow Quebec’s example, instead of Quebec students being told to follow the rest of the country (and continent) into debt bondage.

3)            The student strike was organized through democratic means and with democratic aims: The decision to strike was made through student associations and organizations that uniquely operate through direct-democracy. While most student associations at schools across Canada hold elections where students choose the members of the associations, the democratic accountability ends there (just like with government). Among the Francophone schools in Quebec, the leaders are not only elected by the students, but decisions are made through general assemblies, debate and discussion, and through the votes of the actual constituents, the members of the student associations, not just the leaders. This means that the student associations that voted to strike are more democratically accountable and participatory than most other student associations, and certainly the government. It represents a more profound and meaningful working definition of democracy that is lacking across the rest of the country. The Anglophone student associations that went on strike – from Concordia and McGill – did so because, for the first time ever, they began to operate through direct-democracy. This of course, has resulted in insults and derision from the media. The national media in Canada – most especially the National Post – complain that the student “tactics are anything but democratic,” and that the students aren’t acting in a democratic way, but that “it’s really mob rule.” Obviously, it is naïve to assume that the National Post has any sort of understanding of democracy.

4)            This is not an exclusively Quebecois phenomenon: I am an Anglophone, I don’t even speak French, I have only lived in Montreal for under two years, but the strikers are struggling as much for me as for any other student, Francophone or Anglophone. Typically, when others across Canada see what is taking place here, they frame it along the lines of, “Oh those Quebecois, always yelling about something.” But I’m yelling too… in English. Many people here are yelling… in English. It is true that the majority of the students protesting are Francophone, and the majority of the schools on strike are Francophone, but it is not exclusionary. In fact, the participation in the strike from the Anglophone schools (while a minority within the schools) is unprecedented in Quebec history. This was undertaken because students began mobilizing at the grassroots and emulating the French student groups in how they make decisions (i.e., through direct-democracy). The participation of Anglophone students in the open-ended strike is unprecedented in Quebec history.

5)            Government officials and the media have been openly calling for violence and “fascist” tactics to be used against the students: With all the focus on student violence at protests, breaking bank windows, throwing rocks at riot police, and other acts of vandalism, student leaders have never called for violence against the government or vandalism against property, and have, in fact, denounced it and spoken out for calm, stating: “The student movement wants to fight alongside the populace and not against it.” On the other hand, it has been government officials and the national media which have been openly calling for violence to be used against students. On May 11, Michael Den Tandt, writing for the National Post, stated that, “It’s time for tough treatment of Quebec student strikers,” and recommended to Quebec Premier Jean Charest that, “He must bring down the hammer.” Tandt claimed that there was “a better way” to deal with student protesters: “Dispersal with massive use of tear gas; then arrest, public humiliation, and some pain.” He even went on to suggest that, “caning is more merciful than incarceration,” or perhaps even re-imagining the medieval punishment in which “miscreants and ne’er-do-wells were placed in the stockade, in the public square, and pelted with rotten cabbages. That might not be a bad idea, either.” This, Tandt claimed, would be the only way to preserve “peace, order, and good government.” Kelly McParland, writing the for National Post on May 11, suggested that it was now time for Charest to “empower the police to use the full extent of the law against those who condone or pursue further disruption,” and that the government must make a “show of strength” against the students. If this was not bad enough, get ready for this: A member of the Quebec Liberal Party, head of the tax office in the Municipal Affairs Department, Bernard Guay, wrote an article for a French-language newspaper in Quebec in mid-April advocating a strategy to “end the student strikes.” In the article, the government official recommended using the fascist movements of the 1920s and 1930s as an example in how to deal with “leftists” in giving them “their own medicine.” He suggested organizing a political “cabal” to handle the “wasteful and anti-social” situation, which would mobilize students to not only cross picket lines, but to confront and assault students who wear the little red square (the symbol of the student strike). This, Guay suggested, would help society “overcome the tyranny of Leftist agitators,” no doubt by emulating fascist tyranny. The article was eventually pulled and an apology was issued, while a government superior supposedly reprimanded Guay, though the government refused to elaborate on what that consisted of. Just contemplate this for a moment: A Quebec Liberal government official recommended using “inspiration” from fascist movements to attack the striking students. Imagine if one of the student associations had openly called for violence, let alone for the emulation of fascism. It would be national news, and likely lead to arrests and charges. But since it was a government official, barely a peep was heard.

6)            Excessive state violence has been used against the students: Throughout the three months of protests from students in Quebec, the violence has almost exclusively been blamed on the students. Images of protesters throwing rocks and breaking bank windows inundate the media and ‘inform’ the discourse, demonizing the students as violent, vandals, and destructive. Meanwhile, the reality of state violence being used against the students far exceeds any of the violent reactions from protesters, but receives far less coverage. Riot police meet students with pepper spray, tear gas, concussion grenades, smoke bombs, beating them with batons, shoot them with rubber bullets, and have even been driving police cars and trucks into groups of students. On May 4, on the 42nd anniversary of the Kent State massacre in which the U.S. National Guard murdered four protesting students, Quebec almost experienced its own Kent State, when several students were critically injured by police, shot with rubber bullets in the face. One student lost an eye, and another remains in the hospital with serious head injuries, including a skull fracture and brain contusion. The Quebec provincial police – the SQ – have not only been involved in violent repression of student protests in Quebec, but have also (along with the RCMP) been involved in training foreign police forces how to violently repress their own populations, such as in Haiti. Roughly 12,000 people in Quebec have signed a petition against the police reaction to student protests, stipulating that the police actions have been far too violent.  In late April, even before the Quebec police almost killed a couple students, Amnesty International “asked the government to call for a toning down of police measures that… are unduly aggressive and might potentially smother students’ right to free expression.” The Quebec government, of course, defends police violence against students and youths. The Canadian Security Intelligence Service (CSIS) – Canada’s spy agency – has recently announced its interest in “gathering intelligence” on Quebec student protesters and related groups as “possible threats to national security.” Coincidentally, Prime Minister Stephen Harper dismantled the government agency responsible for oversight of CSIS, making the agency essentially unaccountable. In reaction to student protests, the City of Montreal is considering banning masks being worn at protests in a new bylaw which is being voted on without public consultation. Thus, apparently it is fine for police to wear gas masks as they shoot chemical agents at Quebec’s youth, but students cannot attempt to even meagerly protect themselves by covering their faces. The federal Conservative government of Stephen Harper is attempting to pass a law that bans masks at protests, which includes a ten-year sentence for “rioters who wear masks.” Quebec has even established a secretive police unit called the GAMMA squad to monitor political groups in the province, which has already targeted and arrested members of the leading student organization behind the strike. The police unit is designed to monitor “anarchists” and “marginal political groups.” Some political groups have acknowledged this as “a declaration of war” by the government against such groups. Spokesperson for the largest student group, Gabriel Nadeau-Dubois, stated that, “This squad is really a new kind of political police to fight against social movements.” The situation of police repression has become so prevalent that even the U.S. State Department has warned Americans to stay away from student protests in the city, “as bystanders can quickly be caught up in unforeseen violence and in some cases, detained by the local police.”

7)            The government supports organized crime and opposes organized students: The government claims that it must increase the cost of tuition in order to balance the budget and to increase the “competitiveness” of schools. The government has ignored, belittled, undermined, attempted to divide, and outright oppress the student movement. The Liberal Government of Quebec, in short, has declared organized students to be enemies of the state. Meanwhile, that same government has no problem of working with and supporting organized crime, namely, the Montreal Mafia. In 2010, Quebec, under Premier Jean Charest, was declared to be “the most corrupt province” in Canada. A former opposition leader in the Montreal city hall reported that, “the Italian mafia controls about 80 per cent of city hall.” The mafia is a “big player” in the Quebec economy, and “is deeply entrenched in city affairs” of Montreal, as “more than 600 businesses pay Mafia protection money in Montreal alone, handing organized crime leaders an unprecedented degree of control of Quebec’s economy.” The construction industry, especially, is heavily linked to the mafia. The Montreal Mafia is as influential as their Sicilian counterparts, where “all of the major infrastructure work in Sicily is under Mafia control.” In 2009, a government official stated that, “It’s Montreal’s Italian Mafia that controls what is going on in road construction. They control, from what we can tell, 80 per cent of the contracts.” In the fall of 2011, an internal report written by the former Montreal police chief for the government was leaked, stating, “We have discovered a firmly rooted, clandestine universe on an unexpected scale, harmful to our society on the level of safety and economics and of justice and democracy.” The report added, “Suspicions are persistent that an evil empire is taking form in the highway construction domain,” and that, “If there were to be an intensification of influence-peddling in the political sphere, we would no longer simply be talking about marginal, or even parallel criminal activities: we could suspect an infiltration or even a takeover of certain functions of the state.” Quebec Premier Jean Charest, for several years, rejected calls for a public inquiry into corruption in the construction industry, even as the head of Quebec’s anti-collusion squad called for such an inquiry. An opposition party in Quebec stated that Jean Charest “is protecting the (Quebec) Liberal party – and in protecting the Liberal party, Mr. Charest is protecting the Mafia, organized crime.” After the leaked report revealed “cost overruns totaling hundreds of millions of dollars, kickbacks and illegal donations to political parties,” Charest had to – after two years of refusing – open a public inquiry into corruption. The Quebec mafia have not only “run gambling and prostitution and imported stupefying amounts of illegal drugs into Canada, but they have extended their influence to elected civic and provincial governments, and to Liberal and Conservative federal governments through bribery and other ‘illustrious relations’.” The Federal Conservative Party of Canada, with Prime Minister Stephen Harper as its leader, received dozens of donations from Mafia-connected construction and engineering firm employees. The Mafia-industry has also donated to the Federal Liberal Party, but less so than the Conservatives, who hold power. In Quebec, government officials have helped the Mafia charge far more for public-works contracts than they were worth. These Mafia companies would then use a lot of that extra money to fund political parties, most notably, the Liberals, who have been in power for nine years. A former Montreal police officer who worked in the intelligence unit with access to the police’s confidential list of informants was suspected of selling information to the mafia. In January of 2012, he was found dead, reportedly of a suicide. In April of 2012, fifteen arrests were made in Montreal by the police in relation to corruption charges linked to the Mafia. Among them were one of the biggest names in the construction industry, with 14 individual facing conspiracy charges “involving municipal contracts associated with the Mascouche water-treatment plants [that] are connected to big construction, engineering and law firms that have been involved in municipal contracts and politics across the Montreal region for decades. And the individuals have been around the municipal world for years.” One Quebec mayor has even been charged. The Montreal police force has “not been very interested, and it should be,” in helping the anti-corruption investigation. Two of those who were arrested included Quebec Liberal Party fundraisers, one of whom Charest personally delivered an award to in 2010 for his “years of service as an organizer.” All three of Quebec’s main political parties were connected to individuals arrested in the raids. Canada’s federal police force, the RCMP, have refused to cooperate with the Mafia-corruption inquiry in handing over their massive amounts of information to the judge leading the inquiry. Quebec Education Minister Line Beauchamp, who has been leading the government assault against the students, attended a political fundraiser for herself which was attended by a notorious Mafia figure who personally “donated generously to the minister’s Liberal riding association.” As these revelations emerged, Beauchamp stated, “I don’t know the individual in question and even today I wouldn’t be able to recognize him.” At the time, Beauchamp was the Environment Minister, and was responsible for granting the Mafia figure’s company a favourable certificate to expand its business. Beauchamp claimed she did not know about the deal, but as head of the Ministry which handled it, either she is utterly incompetent or a liar. Either way, she is clearly not fit for “public service” if it amounts to nothing more than “service to the Mafia.” The fact that she is now responsible for increasing tuition and leading the attack on students speaks volumes.  Line Beauchamp, when questioned about taking political contributions from the Mafia, stated, “Now that the information is public and the links well established, I would not put myself in that position again.” Well isn’t that reassuring? Now that it’s public, she wouldn’t do it again. That’s sort of like saying, “I wouldn’t have committed the crime if I knew I was going to be caught.” The notion that Beauchamp didn’t know whom this Mafia figure was who was giving her money is absurd. It’s even more absurd when you note that one of Beauchamp’s political attaches was a 30-year veteran of the Montreal police force. As one Quebec political figure commented about the Liberal Government’s Mafia links: “They refuse to sit down with a student leader but they have breakfast with a mafioso … where is the logic in that?” Indeed. It’s clear that the Quebec government has no problem working with, handing out contracts to, and taking money from the Mafia and organized crime. In fact, they are so integrated that the government itself is a form of organized crime. But for that government, and for the media boot-lickers who follow the government line, organized students are the true threat to Quebec. National newspapers declare Quebec students following “mob rule” when it’s actually the government that is closely connected to “mob rule.” The students are challenging and being repressed by a Mafioso-government alliance of industrialists, politicians, financiers and police… yet it is the students who are blamed for everything. The government gives the Mafia public contracts double or triple their actual value, wasting hundreds of millions of dollars (if not more), while students are being asked to pay nearly double their current tuition. There’s money for the mob, but scraps for the students.

8)            Canada’s elites punish the people and oppose the students: It’s not simply the government of Quebec which has set itself against the students, sought to increase their tuition and repress their resistance, often with violent means, but a wide sector of elite society in Quebec and Canada propose tuition increases and blind faith to the state in managing its repression of a growing social movement. As such, the student movement should recognize that not simply are Jean Charest and his Liberal-Mafia government the antagonists of social justice, but the whole elite society itself. As early as 2007, TD Bank, one of Canada’s big five banks, outlined a “plan for prosperity” for the province of Quebec, and directly recommended Quebec to raise tuition costs for students. Naturally, the Quebec government is more likely to listen to a bank than the youth of the province. Banks of course, have an interest in increasing tuition costs for students, as they provide student loans and lines of credit which they charge interest on and make profits. The Royal Bank of Canada acknowledged that student lines of credit are “very popular products.” Elites of all sorts support the tuition increases. In February of 2010, a group of “prominent” (i.e., elitist) Quebecers signed a letter proposing to increase Quebec’s tuition costs. Among the signatories were the former Premier of Quebec for the Parti Quebecois, Lucien Bouchard.  In early May, a letter was published in the Montreal Gazette which stated that students need to pay more for their education in Quebec, signed by the same elitists who proposed the tuition increase back in February of 2010. Initially, this group of elitists had proposed an increase of $1,000 every year for three years. The letter then calls for the application of state power to be employed against the student movement: “It is time that we react. We must reinstate order; the students have to return to class… This is a situation when, regardless of political allegiances, the population must support the state, which is ultimately responsible for public order, the safety of individuals and the integrity of our institutions.” The “integrity” of institutions which cooperate with the Mafia, I might add. What incredible integrity! The letter was signed by Lucien Bouchard, former Premier of Quebec; Michel Audet, an economist and former Finance Minister in the first Charest government in Quebec; Françoise Bertrand, the President and chief executive officer of the Fédération des chambres de commerce du Québec (The Quebec Federation of Chambers of Commerce), where she sits alongside the presidents and executives of major Canadian corporations, banks, and business interests. She also sits on the board of directors of Quebecor Inc., a major media conglomerate, with former Prime Minister Brian Mulroney on its board. Another signatory was Yves-Thomas Dorval, President of the Quebec Employers’ Council, who formerly worked for British American Tobacco Group, former Vice President at Edelman Canada, an international public relations firm, was a director at a pharmaceutical corporation, head of strategic planning at an insurance company, and previously worked for the Government of Quebec and Hydro-Quebec. Joseph Facal, another signatory to the letter demanding higher tuition and state repression of students, is former president of the Quebec Treasury Board, and was a cabinet minister in the Quebec government of Lucien Bouchard. Other signatories include Pierre Fortin, a professor emeritus at the Université du Québec à Montréal; Michel Gervais, the former rector of Université Laval; Monique Jérôme-Forget, former finance minister of Quebec and former president of the Quebec Treasury Board, member of the Quebec Liberal Party between 1998 and 2009, was responsible for introducing public-private partnerships in Quebec’s infrastructure development (which saw enormous cooperation with the Mafia), and is on the board of directors of Astral Media. Robert Lacroix, another co-signer, was former rector of the Université de Montréal is also a fellow at CIRANO, a Montreal-based think tank which is governed by a collection of university heads, business executives, and bankers, including representatives from Power Corporation (owned by the Desmarais family). Another signatory is Michel Leblanc, president and CEO of the Board of Trade of Metropolitan Montreal, a prominent business organization in Montreal, of which the board of directors includes a number of corporate executives, mining company representatives, university board members, bankers and Hélène Desmarais, who married into the Desmarais family. Another signatory is Claude Montmarquette, professor emeritus at the Université de Montréal, who is also a member of the elitist CIRANO think tank, which as a “research institution” (for elites) has recommended increasing Quebec’s tuition costs for several years. Another signatory was Marcel Boyer, a Bell Canada Professor of industrial economics at the Université de Montréal, Vice-president and chief economist at the Montreal Economic Institute, is the C.D. Howe Scholar in Economic Policy at the C.D. Howe Institute, Member of the Board of the Agency for Public-Private Partnerships of Québec, and Visiting Senior Research Advisor for industrial economics at Industry Canada. At the Montreal Economic Institute, Boyer sits alongside notable elitists, bankers, and corporate executives, including Hélène Desmarais, who married into the Desmarais family (the most powerful family in Canada). At the C.D. Howe Institute, Boyer works for even more elitists, as the board of directors is made up of some of Canada’s top bankers, corporate executives, and again includes Hélène Desmarais. The Desmarais family, who own Power Corporation and its many subsidiaries, as well as a number of foreign corporations in Europe and China, are Canada’s most powerful family. The patriarch, Paul Desmarais Sr., has had extremely close business and even family ties to every Canadian Prime Minister since Pierre Trudeau, and all Quebec premiers (save two) in the past several decades. The Desmarais’ have strong links to the Parti Quebecois, the Liberals, Conservatives, and even the NDP, and socialize with presidents and prime ministers around the world, as well as the Rothschilds, Rockefellers, and even Spanish royalty. Paul Desmarais Sr. has “a disproportionate influence on politics and the economy in Quebec and Canada,” and he especially “has a lot of influence on Premier Jean Charest.” When former French President Nicolas Sarkozy gave Desmarais the French Legion of Honour, Desmarais brought Jean Charest with him. Quebec author Robin Philpot commented that Desmarais “took him along like a poodle,” referring to Charest. The Desmarais family has extensive ties to Canadian and especially Quebec politicians, have extensive interests in Canadian and international corporations and banks, are closely tied to major national and international think tanks (including the Council on Foreign Relations, the Trilateral Commission, and the Bilderberg Group), and even host an annual international think tank conference in Montreal, the Conference of Montreal. The Desmarais family have had very close ties to Prime Ministers Pierre Trudeau, Brian Mulroney, Jean Chretien, Paul Martin, and even Stephen Harper, and to Quebec premiers, including Lucien Bouchard, who co-authored the article in the Gazette advocating increased tuition. The Desmarais empire also includes ownership of seven of the ten French newspapers in Quebec, including La Presse. The Desmarais family stand atop a parasitic Canadian oligarchy, which has bankers and corporate executives controlling the entire economy, political parties, the media, think tanks which set policy, and even our educational institutions, with the chancellors of both Concordia and McGill universities serving on the boards of the Bank of Montreal and the Royal Bank of Canada, respectively, as well as both schools having extensive leadership ties to Power Corporation and the Desmarais family. It is this very oligarchy which demands the people pay more, go further into debt, suffer and descend into poverty, while they make record profits. In March of 2012, Power Corporation reported fourth quarter profits of $314 million, with yearly earnings at over $1.1 billion. Canada’s banks last year made record profits, and then decided to increase bank fees. At the end of April, it was reported that Canada’s banks had received a “secret bailout” back in 2008/09, from both the Bank of Canada and the U.S. Federal Reserve, amounting to roughly $114 billion, or $3,400 for every Canadian man, woman, and child (more than the cost of yearly tuition in Quebec). And yet Quebec youth are told we suffer from “entitlement.” And now banks are expected to be making even more profits, as reported in early May. As banks make more record profits, Canadians are going deeper into debt. The big Canadian banks, along with the federal government, have colluded to create a massive housing bubble in Canada, most especially in Toronto and Vancouver, and with average Canadian household debt at $103,000, most of which is held in mortgages, and with the Bank of Canada announcing its intent to raise interest rates, Canada is set for a housing crisis like that seen in the United States in 2008, forcing the people to suffer while the banks make a profit. The head of the Bank of Canada (a former Goldman Sachs executive) said that Canadian household debt is the biggest threat to the Canadian economy, but don’t worry, Canada’s Finance Minister said he is working in close cooperation with the big banks to intervene in the housing market if necessary, which would likely mean another bailout for the big banks, and of course, hand the check to you! So, Canada has its priorities: every single Canadian man, woman, and child owes $3,400 for a secret bank bailout to banks that are now making record profits and increasing their fees, while simultaneously explaining that there is no money for education, so we will have to pay more for that, too, which is something those same banks demand our governments do to us. When the students stand up, they are said to be “brats” and whining about “entitlements.” But then, what does that make the banks? This is why I argue that Canada’s elites are parasitic in their very nature, slowly draining the host (that’s us!) of its life until there is nothing left the extract.

9)            The student strike is being subjected to a massive and highly successful propaganda campaign to discredit, dismiss, and demonize the students: In the vast majority of coverage on the student strike and protests in Quebec, the media and its many talking heads have undertaken a major propaganda campaign against the students. The students have been consistently ignored, dismissed, derided, insulted and attacked. One Canadian newspaper said it was “hard to feel sorry” for Quebec students, who were “whining and crying” and “kicking up a fuss,” treating Canada’s young generation like ungrateful children throwing a collective tantrum. In almost every article about the student strike, the main point brought up to dismiss the students is that Quebec has the lowest tuition costs in North America. The National Post published a column written by a third-year political science student at McGill University in Montreal stating that, “Quebec students must pay their share,” and advised people to “ignore the overheated rhetoric from student strikers,” and that, “Jean Charest must go full steam ahead.” The student author, Brendan Steven, is co-founder of McGill’s Moderate Political Action Committee (ModPAC), which is an organizing mobilizing McGill students in opposition to the strike. Steven’s organization attacked striking student associations as “illegitimate, unconstitutional shams” and attacked the democratic functioning of other student associations holding general assemblies. Steven complained that the democratic general assemblies “are being invented on a whim.” Brendan Steven not only gets to write columns for the National Post, but gets interviewed on CBC. Steven’s anti-strike group sent a letter to the McGill administration complaining about pro-strike students on the campus, writing, “This group violates our democratic right to access an education without fear of harm,” and added: “We are demanding the McGill administration take action against this minority group before the current conflicts escalate into disasters. They have proven they will not remain peaceful.” As a lap-dog boot-licking power worshipper, Brendan Steven has a future for himself in politics, that’s for sure! Back in January, Steven wrote an article for the Huffington Post in which he explained that the reason why CEOs get paid so much is because “they’re worth it.” He referred to Milton Friedman – the father of neoliberalism – as a “great economic thinker.” Back in November of 2011, Steven wrote an article for the McGill Daily entitled, “Do not demonize authorities,” and then went on to justify police violence against protesting students engaged in an occupation of a school building, which he characterized as “an inherently hostile act.” Steven later got an opportunity to appear on CBC’s The Current. Margaret Wente, writing for the Globe and Mail, wrote that, “It’s a little hard for the rest of us to muster sympathy for Quebec’s downtrodden students, who pay the lowest tuition fees in all of North America.” She then referred to the striking students as “the baristas of tomorrow and they don’t even know it.” Wente then attempted to explain the Quebec students by writing: “Now I get it: The kids are on another planet.” Interesting how she used the word “kids” to just add a little extra condescension. But it seems clear that Wente “gets” very little. In an August 2011 column, Wente tried to explain why poor black communities in Britain and America were experiencing riots and gang activity, placing blame on “single-mothers” and “family breakdown,” and explained that, “Rootless, unmoored young men with no stake in society are a major threat to social order.” Explaining this demographic in economic terms, Wente wrote: “They are, quite simply, surplus to requirements.” In another column, Wente argued that helping deliver much-needed humanitarian supplies to Gaza would “enable terrorists.” Wente also wrote an article entitled, “The poor are doing better than you think,” suggesting that it’s not so bad for poor people because they have air conditioning, DVD players, and cable TV. Wente has been consistently critical of the Occupy movement, and suggested in another article that, “the biggest economic challenge we face today is not income inequality, greedy corporations, Wall Street corruption or the concentration of wealth among the top 1 per cent. It’s the increasing failure of young men with high-school degrees or less to latch on to the world of work.” Of course, in Wente’s world, the inability of young men to get a job has nothing to do with income inequality, greedy corporations, Wall Street corruption or the concentration of wealth. In another article criticizing the Occupy movement, Wente managed to argue that it was not Wall Street and bankers that have destroyed the economy and left people without jobs, but rather what she refers to as the “virtueocracy,” blaming unions, single mothers who gets masters degrees in social sciences, and people who want to work at NGOs and non-profits, doing “transformational, world-saving work.” So it’s Wente’s “insightful” voice which is “informing” Canadians about the student movement in Quebec. Other Canadian publications writing about the Quebec student strike have headlines like, “Reality check for the entitled,” repeating the idiotic argument that because Quebec students pay less than the rest of Canada, they shouldn’t be “complaining” about the hikes. Andrew Coyne wrote a syndicated column in which he claimed that, “Quebec students know violence works,” framing the protest at which police almost killed two students as an action “of general rage the students had promised.” With no mention of the student who lost an eye, or the other student who ended up in the hospital with critical head injuries, Coyne talked about a cop who “was beaten savagely” and “lay helpless on the ground.” No mention, of course, of the police truck that drove into a group of students moments later, or the fact that the cop who was “beaten savagely” got away with minor injuries, unlike the students who were shot in the face with rubber bullets. By simply omitting police brutality and violence, Coyne presented the student movement as itself inherently violent, instead of at times erupting in violent reactions to state violence, which is far more extreme in every case. The Toronto Sun even had an article which claimed that the students have employed tactics of “thuggery” and “violent criminal behaviour.” Publications regularly ask their readers if Quebec students have “legitimate” grievances, if they are fighting for “social justice,” or if they are just “spoiled brats.” A syndicated column from the Vancouver Sun by Licia Corbella was titled, “How rioting students help make me grateful.” She discussed her latest visit to church where the pastor advised: “Parents, do not provoke your children to anger by the way you treat them,” and mentioned how parents anger their children by “belittling them, underestimating them and not treating them as individuals.” Corbella then took particular note of how parents provoke and enrage children “when we give them a sense of entitlement.” With the word “entitlement,” Corbella naturally then began thinking about Quebec students, as according to Corbella’s pastor, “entitlement leads to rage.” Corbella wrote that rioting “is, in essence, what a spoiled two-year-old would do if they had the ability.” She further wrote: “In Quebec, these entitled youth, who believe the rest of society MUST provide them with an almost free education or else, have blocked other students from accessing the educations they paid for, burned vehicles, smashed shop windows, looted property and severely beaten up a police officer who got separated from the rest of his colleagues.” Again, no mention of the two students who were almost killed by police at the same event. Corbella quoted someone interviewed on TV, endorsing the claim that the student protests are “starting to resemble terrorism,” though she took issue with the word “starting.” This is the result of creating, according to Corbell, “an entitlement society.” Apparently, the pastor’s lesson about not “belittling” the young did not sink in with Corbella. An article in the Chronicle Herald asked, “What planet are these kids on?” The author then wrote that, “the irony is that these students now want the system to accommodate their desires and for someone else to pay the bill,” and that, “students should stop making foolish demands.” Other articles claim that students “need a lesson in economics.” After all, the fact that the majority of economists, fully armed with “lessons in economics,” were unable to predict the massive global economic crisis in 2008, should obviously not lead to any questioning of the ideology of modern economic theory. No, it would be better for students to learn about the ocean from those who couldn’t see a tsunami as it approached the beach. Another article, written by a former speechwriter to the Prime Minister of Canada, wrote that the student arguments were vacuous and that the youth were in a “state of complete denial.” Rex Murphy, a commentator with the National Post and CBC, referred to the student strike as “short-sighted” and that student actions were “crude attempts at precipitating a crisis.” Student actions, he claimed, were the “actions of a mob” and were “simply wrong,” and thus, should be “condemned.” The CBC has been particularly terrible in their coverage of the student movement. With few exceptions, the Canadian media have established a consensus in opposition to the student protests, and use techniques of omission, distortion, or outright condemnation in order to promote a distinctly anti-student stance.

10)            The student movement is part of a much larger emerging global movement of resistance against austerity, neoliberalism, and corrupt power: In the coverage and discourse about the student movement, very little context is given in placing this student movement in a wider global context. The British newspaper, The Guardian, acknowledged this context, commenting on the red squares worn by striking students (a symbol of going squarely into the red, into debt), explaining that they have “become a symbol of the most powerful challenge to neoliberalism on the continent.” The article also adopted the term promoted by the student movement itself to describe the wider social context of the protests, calling it the “Maple Spring.” The author placed the fight against tuition increases in the context of a struggle against austerity measures worldwide, writing: “Forcing students to pay more for education is part of a transfer of wealth from the poor and middle-class to the rich – as with privatization and the state’s withdrawal from service-provision, tax breaks for corporations and deep cuts to social programs.” The article noted how the student movement has linked up with civic groups against a Quebec government plan to subsidize mining companies in exploiting the natural resources of Northern Quebec (Plan Nord), taking land from indigenous peoples to give to multibillion dollar corporations. As one of the student leaders stated, the protest was about more than tuition and was aimed at the elite class itself, “Those people are a single elite, a greedy elite, a corrupt elite, a vulgar elite, an elite that only sees education as an investment in human capital, that only sees a tree as a piece of paper and only sees a child as a future employee.” The student strike has thus become a social movement. The protests aim at economic disruption through civil disobedience, and have garnered the support of thousands of protesters, and 200,000 protesters on March 22, and close to 300,000 on April 22. Protests have blocked entrances to banks, disrupted a conference for the Plan Nord exploitation, linking the movement with indigenous and environmental groups. It was only when the movement began to align with other social movements and issues that the government even accepted the possibility of speaking to students. Unions have also increasingly been supporting the student strike, including with large financial contributions. Though, the large union support for the student movement was also involved in attempted co-optation and undermining of the students. At the negotiations between the government and the students, the union leaders convinced the student leaders to accept the deal, which met none of the student demands and kept the tuition increases intact. There was a risk that the major unions were essentially aiming to undermine the student movement. But the student groups, which had to submit the agreement to democratic votes, rejected the horrible government offer. Thus the Maple Spring continues. Quebec is not the only location with student protests taking place. In Chile, a massive student movement has emerged and developed over the past year, changing the politics of the country and challenging the elites and the society they have built for their own benefit. One of the leaders of the Chilean student movement is a 23-year old young woman, Camila Vallejo, who has attained celebrity status. In Quebec’s student movement, the most visible and vocal leader is 21-year old Gabriel Nadeau-Dubois, who has also achieved something of celebrity status within the province. Just as in Quebec, student protests in Chile are met with state violence, though in the Latin American country, the apparatus of state violence is the remnants of a U.S.-supported military dictatorship. Still, this does not stop tens of thousands of students going out into the streets in Santiago, as recently as late April. Protests by students have also been emerging elsewhere, often in cooperation and solidarity with the Occupy movement and other anti-austerity protests. Silent protests are emerging at American universities where students are protesting their massive debts. California students have been increasingly protesting increased tuition costs. Student protests at UC Berkeley ended with 12 citations for trespassing. Some students in California have even begun a hunger strike against tuition increases. In Brooklyn, New York, students protesting against tuition increases, many of them wearing the Quebec “red square” symbol, were assaulted by police officers. Even high school students in New York have been protesting. Israeli social activists are back on the streets protesting against austerity measures. An Occupy group has resumed protests in London. The Spanish indignado movement, which began in May of 2011, saw a resurgence on the one year anniversary, with another round of anti-austerity protests in Spain, bringing tens of thousands of protesters, mostly youths, out into the streets of Madrid, and more than 100,000 across the country. Their protest was met with police repression. Increasingly, students, the Occupy movement, and other social groups are uniting in protests against the costs of higher education and the debts of students. This is indeed the context in which the ‘Maple Spring’ – the Quebec student movement – should be placed, as part of a much broader global anti-austerity movement.

So march on, students. Show Quebec, Canada, and the world what it takes to oppose parasitic elites, mafia-connected politicians, billionaire bankers, and seek to change a social, political, and economic system that benefits the few at the expense of the many.

Solidarity, brothers and sisters!

For a comprehensive analysis of the Quebec student strike, see: “The Québec Student Strike: From ‘Maple Spring’ to Summer Rebellion?”

For up to date news and information of student movements around the world, join this Facebook page: We Are the Youth 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.