The 9/11 Bubble

Here is more fiscal bad news. Add this with the earlier post Contemporary Thoughts: Pass the Buck -- The approaching financial catastrophe This may be the main issue in the 2nd W Presidency.

The very reason Mr. Bush had the luxury of launching a war of necessity in Afghanistan and a war of choice in Iraq, without a second thought, was because of the surpluses built up by the previous administration and Congress. Since then, the Bush team has been slashing taxes in the middle of two wars, weakening the dollar and amassing a huge debt burden - on the implicit assumption that nothing will go wrong in the future.

But what if there is another 9/11 or war of necessity? We're cooked. The tax revenue won't be there, so the only option will be more borrowing and a weaker dollar. But what happens if the Chinese and other foreigners, who now hold over 40 percent of our Treasury securities, decide they don't want to hold these depreciating dollars anymore, let alone buy more?

The Case for Not Attacking Iran

Well, it seems that Iraq is not enough. We now need Iran too. This is getting ridiculous.

Do the last few days remind you of anything, by any chance? Presidential heavy breathing about a ‘rogue’ Middle Eastern state; a supporting chorus of exiles with dramatic new claims; and a senior member of the US government bearing intelligence which turns out to be more spin than spine-chilling. Less than a month after the presidential election, the Bush White House has begun its campaign against Iran. In the week that Americans break for Thanksgiving, it might seem that, for Washington, the festival of the moment should really be Groundhog Day.

And it seems that it all was serendipity

According to Ken Pollack, the highly respected Washington Middle East analyst, Iran’s current status as a fully-fledged US hate-object is partly the result of an accident. Since the embassy hostage-taking in 1979, relations have not been warm. But there have been several attempts at rapprochement since. And, by Pollack’s account, Iran only ended up in President Bush’s famous ‘Axis of Evil’ speech as little more than ‘padding’. Bush’s speechwriters ‘had come up with this great line, and they needed a third country to make up an Axis’, he quotes one administration official as telling him.

However, we hope that Iran is in a better position than what Iraq was in.

In discussions with journalists and British officials over the last six months, Iran has discreetly made it clear that if it should be attacked, it has the power to turn the current mess in Iraq into a Lebanon-in-the-1980s-style calamity, and send a lot more men of the British and American armies back home in boxes. That is the main reason why the current policy of negotiation, coupled with threats from each side to make life difficult for the other, will probably continue for some time, however tough the rhetoric from Washington.

Condaliza Rice takes over as Secratary of State

Don't forget to smile.

US Downplays Report on Guantanamo Prisoner Abuse

This is a must read about Guantanamo.

It cited one common practice at Camp Delta, the main prison facility, which was applied to uncooperative detainees. They were forced to strip to their underwear, sit in a chair while shackled hand and foot to the floor, and then subjected to strobe lights and loud rock and rap music while the air-conditioning was turned to maximum levels.

Pass the Buck -- The approaching financial catastrophe

This is a very important article from Ludwig Van Mises Institute (a Libertarian Think Tank) . The dollar is steadily weakening against all other main currencies of the world. What is worse is that the original problem occured because of the supremacy of the dollar in the sixties and the world pegging their currencies on the dollar. The dollar at that time was backed with gold. When Europe started collecting the gold in the 60's, Nixon bet that if he would remove the gold standard, the dollar would still be sought after and the interest game would bring money into the US, without losing the gold.

Well that worked for a while....but the game looks like it is beginning to implode. You know the fake pyramid schemes of making money from nothing....this is at a world level.

Here are some excerpts from the analysis.

The post Second World War monetary architecture crowned the dollar as the world's reserve currency, tying it to gold at a fixed sum and all other currencies fixed against each other. Under this pseudo gold standard, America's central bank would convert dollars to gold on demand for foreigners. However, U.S. policy-makers assumed that gold redemption would fail to materialize and the Fed could inflate without sanction because foreign central banks would retain the dollars as reserves on which to pyramid their own currencies.

The system worked fine, as far as America was concerned, until the 1960s when European countries replaced an inflationary bent with hard money policies. Assailed by rampant inflation, the Vietnam War, and staggering trade and budget deficits, the U.S. hemorrhaged gold at an accelerated pace, prompting President Nixon to close the gold window in 1971. The de facto declaration of national bankruptcy heralded the advent of free-floating currencies and the present stage of the dollar standard.

No longer constrained by even the nominal fetters of Bretton Wood's pseudo gold standard, America has been able to purchase imports with fiat money churned out by the Fed and uniquely finance its burgeoning indebtedness by issuing debt instruments in dollars. On the other hand, foreigners, stuck with unconvertible greenbacks since 1971, have had no choice but to adopt dollars, rather than gold, as the world's reserve asset.

Consequently, the dollar standard, in both the fixed and floating variants, has fostered an unhealthy economic relationship whereby most major economies excessively rely on exports to the U.S. and then funnel the greenback receipts back into America's credit-hungry public and private sectors. Repatriated dollars seep into America's financial system, furnishing banks a broader monetary base to pyramid credit upon, which can fund more U.S. imports, thus perpetuating the world's vicious economic cycle.[i]

The article is a bit long but very interesting to read. If you don't want to read it, it should suffice to read the last two paragraphs.

To underscore the voracity of the dollar's impending demise, the 27 November Edition of the Financial Times furnishes a telling account published in its letter-to-the-editor section. The writer, who just returned from a business trip to Vietnam, recalls how when a 7-year-old street urchin asked him for money, the child refused his offer of a dollar, instead specifying euros.[vi]

A 100% gold standard, with its inherent price-specie-flow mechanism, would have precluded the tremendous accumulation of debt and annual trade deficits by America as well as the gross distortion of the international economy, whereby most major countries orient production toward exporting goods to America. As 50 years of the fiat dollar standard "boom" ends, the U.S. and the world will reap what they have sown.

The Victims of "Victimhood"

This is an article about honor killing in Jordan. However, it actually exposes made up stories and nonsensical issues with a recent book called "Honor Lost: Love and Death in Modern Day Jordan".

An excerpt

Khouri's hoax is a dramatic illustration of how harmful such gaping incredulity can be to real victims and honest dialogue. Malcolm Knox, Literary Editor of SMH, commented that Khouri "spent much of 2003 retelling this story, reducing listeners to tears and anger, in interviews, book festivals, bookshops and other events ... Khouri became a standard-bearer for oppressed Arab women and triggered a publishing trend of similar books."

Meanwhile, Sabbagh – a woman who has fought on the front lines for the real victims of honor killings – stated: "We feel defamed by this book." She feels defamed because Jordan has courageously opened up the topic of honor killings for global examination. Now the issue is being defined by sensationalized fiction, not reality.

Wendy McElroy concludes with

The sad Khouri saga is not an indictment of honor killings. It is an indictment of how society has so fallen in love with victimhood that it took 18 months and an international effort to debunk a claim that should have immediately collapsed of its own weight. But, then, that would have required asking a question.

US Foreign Policy Exposed

Here is an excerpt

In the past 100 years American foreign policy has become progressively more offensive, more militaristic, more expensive, and in every way, less republican, less constitutionally constrained, and with all that, imperial. The facts on the ground in terms of military spending (seven times the next closest spenders, China and Russia, and thirty times that of Iran, North Korea, and Syria combined), military reach (global), and general policies of interference (the U.S. "is the foremost user of economic coercion as a foreign policy tool") support Eland’s assessment that indeed, our foreign policy is beyond the pale and unsustainable. Several closet imperialistas in the neoconservative camp of both major parties, such as Max Boot of the Council on Foreign Relations and Victor D. Hanson of the Weekly Standard are frequently referenced. Even they seem to agree, ruefully at times, with the basics put forth in the book.

Thus, we have an empire, of sorts, impossible to pay for or to secure, and remarkably unguided by the kind of great ideas, kings and emperors we might read about or watch on the big screen. America has not been led to empire by some great shared vision or the ego of a larger than life leader. She has been cajoled, sweet-talked, lied to and made afraid whenever it was politically expedient, by bureaucrats and academics and ideologues who never knew war or else relished the fantasy of it.

And another one

In this important book, Eland has stripped the American empire for all to see. While it is admittedly painful, we must boldly direct our gaze at this undressed spectacle. The average American, like the clear-eyed innocent little boy in the Hans Christian Andersen story "The Emperor’s New Clothes," is completely capable of observing that in spite of what we are told by the echo chambers of administrations from Wilson to Roosevelt to Truman to Nixon to Bush 41, Clinton and Bush 43, in fact the American empire has no clothes. No profit, no richness, no honor, no loveliness, no good works or humanity. In pursuing empire for beautiful and glorious sounding reasons, in fact we have made America a laughingstock, and as a republic, she has grown scrawny and weak.

That Pre-9/11 Mindset

Sometimes the more things change, the more they stay the same.

Some quotes:

In 2000, for example – a year before 9/11 – the Mises Institute's Jon Basil Utley was predicting that the United States' disregard of international law was fueling a potential terrorist backlash. And the year before that, our own Lew Rockwell observed that thanks to its "foreign policy, imperial military reach, and global arrogance, the U.S. government is the most hated in the world," so it's "not surprising" that terrorists might "blame us for the actions of the government."

And even from Pat Buchanan

On the right, Pat Buchanan was asking in 1999:

With the Cold War over, why invite terrorist attacks on our citizens and country, ultimately with biological, chemical or nuclear weapons? … [B]attling terrorism must go beyond discovering and disrupting it before it happens and deterring it with retaliation. We need to remove the motivation for it by extricating the United States from ethnic, religious and historical quarrels that are not ours and which we cannot resolve with any finality.

The Failure of Media and Journalism by Robert Jensen

Professor Robert Jensen from the University of Texas in Austin was in the San Francisco Bay Area recently. His web page is linked to the title of this blog. He gave an interesting talk about the failure of media and journalism in the past few years and notably during the war in Iraq and the elections. Here is a summary of his talk. Also here is an article entitled The Failure of US Journalism from his website.

Professor Jensen has put together a Citizen's Oath of Office.

I do solemnly pledge that I will faithfully execute the office of citizen of the United States, and that I will, to the best of my ability, resist corporate control of the world, resist militarism, resist the roll-back of civil rights, and resist illegitimate authority in all its forms.

Citizenship in the United States involves more than "just voting". Part of making good on citizenship is being informed and among the ways to get informed is through the media. The role of media in the US can be enumerated as follows:

1. Provide an independent source of factual information. The two other main sources of information in the US are the government and the corporate world. Media plays a very important role in corroborating the information produced by the other two sources.
2. Provide a framework or a context for the information, whether historical, social, political, or economic relevance.
3. Provide as wide a range of opinion as possible, both from official sources (government and corporate) and unofficial (the public).
   

Especially during crises, the role of media becomes heightened and critical. A country that prides itself on adherence to a constitution and institutions of process to decide its actions should value the truth at all times and search for it fervently during times of crises. We see some samples of the failure of media recently.

1. In terms of providing factual information, the failure that we observed in the run-up to the Iraq war was evident and seen by many in the world and proven more recently.
2. In terms of providing a context for the information and facts, we see a blatant failure in the Middle East and the situation between Israel and the Arabs.
3. The range of opinion we get from the current media runs the gamut from A to .... B. Most of the information available from the media regarding Iraq has been from the military establishment and the retired military establishment. Other sources and points of view were marginalized and discounted without bringing out the information to the public.
   

Failure of the media to fulfill its role stems mostly from systemic problems (and therefore cannot be termed failure in reality).

1. The structure of mainstream media in the US is corporate, for profit entities. Therefore it is difficult to isolate from the corporate information centers and not able to challenge them.
2. The set of professional practices that the media follow are not objective enough. They deal in objectivity, yet they favor officials that frame the news, does not allow oneself to ignore personal prejudices and truly feret out made up data
3. The whole media sector is necessarily beholden to the idealogy of the Benevolent Empire when it comes to international news and to the understanding of capitalism as a system (not as a theory among theories as in Europe) [More on this at the end of this post]
   

How is it possible to solve or resolve this? It is actually a failure of democray not the failure of journalism. Whatever the first issue is, media is the second. This is what is needed:

1. A healthy media system is diversified and not overwhelmingly corporate. Public and alternative media exist.
   
2. The public broadcast has to be greatly expanded (professional journalism)
   
3. Grassroots media operations (non-professional and citizen media)
   

These items can be accomplished as follows:

1. Working journalist need to be empowered to have control over their work. This may be done through the unionizing of journalists to a certain extent.
   
2. Citizens need to demand accountability for the right of use of the airwave. The broadcasting companies purchase the license from the public trust and make a lot of money from it. They have to be accountable to the public.
3. The public and citizens have to continue and expand support for alternative media.

The Naturalizing of Capitalism

Professor Robert Jensen discussed the view of capitalism from within the US. While he did not condemn captialism, per se, he was critical of how it is viewed as a fait accompli in the US, just the way it is practised, with no room for modifications. Capitalism is modified in Europe to a certain extent and it vies for a segment of the mind in addition to other forms of financial compensation or as the key driver of societies.

The Benevolent Empire

Professor Robert Jensen argues that the US has always been an empire and more so after World War II. And it is only recently that this is being admitted in the media. The US empire controls in a different way than the colonizing empires of old, usurping culture and supporting dictators. Nevertheless, it still is an empire.

One difference is that the public believes, or evidence is presented for the public to believe, that even if the US is an empire, it is benevolant. That we only want what is best for the other nations and not take from them for our benefit. Of course, the public may have this feeling, but the reality on the ground for the nations of the world is different. The US has a strong history of supporting dictators that are against their own people and that, somehow, benefit the US, only to be toppled when they change their tune. Saddam Hussein is the most recent example of this. But there were many before him.

Conclusion

Very simply, the conclusion is that concentrations of power are dangerous wherever they occur. In today's climate we need to react to how far to the right US politics are and encourage use of our freedoms. In a depoliticized country freedoms are not used.

Some more articles by Professor Robert Jensen

• It's not just the emperor who is naked, it's the whole empire
• The US has lost the Iraq war, and that is a good thing
• US still adrift in the Middle East
• Your Rich Men are Full of Violence
  

Back to posting again

Somewhere and sometime in the frenzy of the campaign and the inundation of information, messages and confused not-entirely-true statements of both sides, it quickly became impractical for me to comment on all that I wanted to comment about.

Anyway, now that the election is over and things are settled down, it is really time to evaluate the political situation that we Americans find ourselves in viz-a-viz:

• Our internal bi-coastal/heartland division
• Our relationship with the rest of the world
• Definition of values (seems that is what everyone is looking for, but what values?)

I will try to keep my thoughts short (so I can blog them) and I invite your comments to any of my blogs. For those very interesting comments, I will edit my blog and include them to make the reading more interesting.

Also I will be adding the RSS feed to the blog today. Use it if you find this blog interesting.