Archive for the ‘Geo-politics’ Category

Iceland takes a more rational approach to the finacial crisis

April 5, 2012

A Bloomberg report of February 28, 2012 describes the steps that Iceland has been taking to deal with their banking crisis. A basic feature of their policy has been debt relief  for homeowners. Here’s are some excerpts:

“Once it became clear back in October 2008 that the island’s banks were beyond saving, the government stepped in, ring-fenced the domestic accounts, and left international creditors in the lurch. The central bank imposed capital controls to halt the ensuing sell-off of the krona and new state-controlled banks were created from the remnants of the lenders that failed.

Legal Aftermath

Iceland’s special prosecutor has said it may indict as many as 90 people, while more than 200, including the former chief executives at the three biggest banks, face criminal charges.

Larus Welding, the former CEO of Glitnir Bank hf, once Iceland’s second biggest, was indicted in December for granting illegal loans and is now waiting to stand trial. The former CEO of Landsbanki Islands hf, Sigurjon Arnason, has endured stints of solitary confinement as his criminal investigation continues.

That compares with the U.S., where no top bank executives have faced criminal prosecution for their roles in the subprime mortgage meltdown. The Securities and Exchange Commission said last year it had sanctioned 39 senior officers for conduct related to the housing market meltdown.”

You can read the entire report at Icelandic Anger Brings Debt Forgiveness in Best Recovery Story

One wonders, why the same approach was not taken in the U.S.? I would venture to say that it all boils down to political power–who controls the government? Iceland is a small country, which probably accounts for the ability of the people to influence the government to an extent that seems impossible in a country like the U.S., where, instead of relieving the people, the government chose to relieve (reward) the banks that created the problem in the first place. It did that by shifting the excessive and unserviceable debts from the banks’ balance sheets to that of the government.

That, in turn, required a huge expansion in the national debt, but that will not and cannot solve the problem. It will only make matters worse because the world is losing its appetite for U.S. government bonds. When the Federal Reserve steps in as “buyer of last resort” we get a further debasement of the dollar and ultimately price inflation, which causes the savings of the middle-class to be wiped out.

The debt-money system has inherent in it a growth imperative. Banks create money on the basis of interest-bearing loans. The interest burden requires the creation of additional debts so that the interest can be paid. That cannot continue forever; debts must ultimately be forgiven.

But even that, by itself, is not sufficient to prevent a recurrence of the bubble-and-bust cycle. Money must be created interest-free. The best way to achieve that is by creating competing means of exchange like mutual credit clearing and private cooperative currencies.–t.h.g.

The inexorable march toward tyranny and the end of the American Republic

March 28, 2012

It did not begin with Obama, and it will not end with him, it is a course that has been maintained by all administrations, Democrat and Republican, over many decades, but it is now approaching a climax. It’s all about control—centralized control, which leaves no room for popular participation or democratic government. The oligarchs who control the United States government (along with most of the global power structure) will do whatever it takes to assure “full-spectrum dominance” in their own hands.

Now, as they beat the drums for a war against Iran which they seem determined to have, a war which the majority of Americans are opposed to, they are putting us on notice that everything we think we own belongs to them and will be used to further their agenda. Through a series of legislative acts and executive orders, they have given themselves the “legal” cover for increasingly intrusive and heavy-handed actions to deal with public opposition. The article below from the Washington Times describes the latest of these. Although the author seems confused in his characterization of the kind of government we now have (National Socialism, ala Hitler’s Germany, seems to be most apt), his basic argument is compelling.

I also recommend that everyone read Naomi Klein’s book, The Shock Doctrine: The Rise of Disaster Capitalism.—t.h.g.

Obama’s power grab

Executive order expands presidential prerogative

By Jeffrey T. Kuhner  -  The Washington Times  Thursday, March 22, 2012

President Obama has given himself the powers to declare martial law – especially in the event of a war with Iran. It is a sweeping power grab that should worry every American.

On March 16, the White House released an executive order, “National Defense Resources Preparedness.” The document is stunning in its audacity and a flagrant violation of the Constitution. It states that, in case of a war or national emergency, the federal government has the authority to take over almost every aspect of American society. Food, livestock, farming equipment, manufacturing, industry, energy, transportation, hospitals, health care facilities, water resources, defense and construction – all of it could fall under the full control of Mr. Obama. The order empowers the president to dispense these vast resources as he sees fit during a national crisis.

“The United States must have an industrial and technological base capable of meeting national defense requirements and capable of contributing to the technological superiority of its national defense equipment in peacetime and in times of national emergency,” the order says. “The domestic industrial and technological base is the foundation for national defense preparedness. The authorities provided in the act shall be used to strengthen this base and to ensure it is capable of responding to the national defense needs of the United States.”

In short, the order gives Mr. Obama the ability to impose martial law. He now possesses the potential powers of a dictator. The order is a direct assault on individual liberties, private property rights and the rule of law. It is blatantly unconstitutional. The executive branch is arrogating responsibilities precluded by the Constitution without even asking the permission of Congress. The order gives Mr. Obama a blank check to erect a centralized authoritarian state. This is a law one would expect to find in Hugo Chavez’s Venezuela or Vladimir Putin’s Russia.

The backdrop to the executive order is the looming showdown with Iran. The administration says the “window for diplomacy is closing.” Defense Secretary Leon E. Panetta warned Tehran’s mullahs that “all options are on the table” – including military intervention. Mr. Obama stresses that his patience is running out. He vows that Iran will not acquire the bomb. Mr. Obama wants several more months for sanctions and international isolation to bring the ayatollahs to heel. Yet the signals are clear: Mr. Obama may be ready to launch devastating airstrikes on Iranian nuclear facilities.

If that should happen, Iranian President Mahmoud Ahmadinejad has promised massive retaliation. American troops will be targeted by Iranian proxies in Iraq and Afghanistan. American embassies will be struck across the Middle East and North Africa. Most ominously, Iranian-backed Hezbollah cells could launch devastating terrorist attacks in major U.S. cities, killing numerous citizens. The war may well come home, triggering domestic chaos. These are the very real risks of a major conflict with Iran.

Which begs the question: Would that tempt Mr. Obama to claim a state of emergency and thereby implement his executive order? No one knows the answer. And we shouldn’t have to find out. The president does not – and should not – have the authority to subordinate the entire private economy to the government, especially without the consent of Congress and the American people. It is national socialism masquerading as military security.

This is why conservatives – those who are serious about defending our constitutional republic – should demand that the executive order be repealed immediately. Liberals argue that President Clinton issued a nearly identical mandate. President Franklin D. Roosevelt signed the first national defense resources preparedness order, which has been amended by successive presidents, including George W. Bush. Hence, according to the progressive left, if it was good enough for FDR, Mr. Clinton and Mr. Bush, why not Mr. Obama?

The answer is simple: Because the Constitution matters – or at least it should. For more than 70 years, liberal Democrats and corporatist Republicans have been slowly dismantling the old republic, imposing a creeping social democracy. The Founding Fathers’ vision of limited government and federalism has been replaced by a new ruling class. FDR, Mr. Clinton, Mr. Bush – all of them were militarists expanding the size and scope of government. They were Wilsonian globalists, and they shamelessly violated civil liberties. FDR was the worst, by forcing Japanese-Americans into internment camps.

Mr. Obama’s executive order represents the culmination of the welfare-warfare state. He is walking in the footsteps of his predecessors, those who enabled the rise of the imperial presidency. And it leads to only one tragic end: the gradual deterioration of our democracy.

Jeffrey T. Kuhner is a columnist at The Washington Times and president of the Edmund Burke Institute.

An interesting take on the Russian election

March 11, 2012

There’s been little said about it in the American media, but here’s an interesting take on the Russian election by analyst Adrian Salbuchi, interviewed on RT:

Iran is next on the globalist “hit list”

March 6, 2012

Why do we accept this madness? Attacking one country after another to prop up a dying imperial system will only bring more misery and ultimate failure. It’s the same old pattern that the elite globalists have been using to force every country into line to accept the New World Order of neo-feudalism.

Under the political money system, governments can appropriate as much of their country’s economic product as they wish, without directly taxing the people. If the people were asked directly to pay for wars, we would have few or none of them.

Foster Gamble, the producer of THRIVE is trying to wake up the American people in the video below.

Rabbi Michael Lerner (Tikkun Magazine) and the Network of Spiritual Progressives are also trying to open people’s eyes and talk sense to those who would lead us once again into an unprovoked war. They are buying ad space in major American newspapers to make the case against the war. See the draft ad here.

Another (more honest) take on the economy

February 5, 2012

In his recent article that appeared in Counterpunch, Paul Craig Roberts, tells the story of the American economy as it really is.–t.h.g.

February 01, 2012

The Emperor Has No Clothes.  Economics 101

by PAUL CRAIG ROBERTS

Last Friday (January 27) the US Bureau of Economic Analysis announced its advance estimate that in the last quarter of 2011 the economy grew at an annual rate of 2.8% in real inflation-adjusted terms, an increase from the annual rate of growth in the third quarter.

Good news, right?

Wrong.  If you want to know what is really happening, you must turn to John Williams at shadowstats.com.

What the presstitute media did not tell us is that almost the entire gain In GDP growth was due to “involuntary inventory build-up,” that is, more goods were produced than were sold.

Net of the unsold goods, the annualized real growth rate was eight-tenths of one percent.

And even that tiny growth rate is an exaggeration, because it is deflated with a measure of inflation that understates inflation. The US government’s measure of inflation no longer measures a constant standard of living.  Instead, the government’s inflation measure relies on substitution of cheaper goods for those that rise in price. In other words, the government holds the measure of inflation down by measuring a declining standard of living. This permits our rulers to divert cost-of-living-adjustments that should be paid to Social Security recipients to wars of aggression, police state, and banker bailouts.

When the methodology that measures a constant standard of living is used to deflate nominal GDP, the result is a shrinking US economy. It becomes clear that the US economy has had no recovery and has now been in deep recession for four years despite the proclamation by the National Bureau of Economic Research of a recovery based on the rigged official numbers.

A government can always produce the illusion of economic growth by underestimating the rate of inflation. There is no question that a substitution-based measure of inflation understates the inflation that people experience. More proof that there has been no economic recovery is available from those data series that are unaffected by inflation. If the economy were in fact recovering, these date series would be picking up. Instead, they are flat or declining, as John Williams demonstrates.

For example, according to the government’s own data, payroll employment in December 2011 is less than in 2001. Meanwhile, there has been a decade of population growth. The presstitute media calls the alleged economic recovery a “jobless recovery,” which is a contradiction in terms. There can be no recovery without a growth in employment and consumer income.

Real average weekly earnings (deflated by the government’s CPI-W) have never recovered their 1973 peak. Real median household income (deflated by the government’s CPI-U) has not recovered its 2001 peak and is below the 1969 level. If earnings were deflated by the original methodology instead of by the new substitution-based methodology, the picture would be bleaker.

Consumer confidence shows no recovery and is far below the level of a decade ago.

How does an economy recover without a recovery in consumer confidence?

Housing starts have remained flat since 2009 and are  below their previous peak.

Retail sales are  below the index level of January 2000.

Industrial production remains  below the index level of January 2000.

To repeat, the only indicator of economic recovery is the GDP deflated with an understated measure of inflation.

The US economy cannot recover, because the US economy depends on consumer expenditures for more than 70% of its activity. The offshoring of middle class jobs has stopped the rise in middle class income and caused a drop in consumer spending power.

The Federal Reserve under Alan Greenspan compensated for the absence of US consumer income growth with a policy of easy credit and a policy of driving up home prices with low interest rates. This policy allowed people to refinance their homes and to spend the inflated equity in their homes that Greenspan’s policy created.

In other words, an increase in consumer indebtedness and dissavings drove the economy in the place of the missing growth in consumer incomes.

Today, consumers are too indebted to borrow, and banks are too insolvent to lend. Therefore, there is no possibility of further debt expansion as a substitute for real income growth. An offshored economy is a dead and exhausted economy.

The consequences of a dead economy when the government is wasting trillions of dollars in wars of naked aggression and in bailouts of fraudulent financial institutions is a government budget that can only be financed by printing money.

The consequence of printing money when jobs have been moved offshore is an inflationary depression. This catastrophe could begin to unfold this year or in 2013. If Europe’s problems worsen, flight into dollars could delay sharp rises in US inflation until 2014.

The emperor has no clothes, and sooner or later this will be recognized.

PAUL CRAIG ROBERTS was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury.  His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Press. He can be reached through his website

Did Libya’s Gadhafi Threaten the Global Power Structure?-Part 2

December 10, 2011

Here’s another report from RT television about the reasons for the NATO invasion of Libya and the overthrow of the Gadhafi government.

What’s the “Occupy” Movement all about?–Part 5

November 28, 2011

The following is a message sent by Guy “Josh” Josserand, one of my friends and associates, to the Occupiers in Tucson. It is an eloquent expression of hope and power that I think should be widely shared.–t.h.g.

Dear Occupiers and Occupationists,

Thank you so much from my heart for the power of your presence.

This is a rising tide of public awareness and personal participation for which I have had decades of anticipation.

A tsunami of love and respect for life is forming that can wash clean some centuries of fear-based domination of the many by the few.

Government of the People, for the People, and by the People now faces its last best chance to escape corporate feudalism.

Are we serfs or are we sovereigns?

Toward this end I wish to encourage the Occupation to speak, not about what it needs but WHAT IT GIVES.

As much as the Occupation needs the 99%, we all, the 100%, need what the Occupation offers even more.

It offers us all power and voice.

Let us INVITE each one to take control of the power they have.

Let us encourage them to accept the power they are.

Let us remind them of Marianne Williamson’s message which Nelson Mandela repeated in his Inaugural Address.

“Our deepest fear is not that we are inadequate. Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. We ask ourselves, Who am I to be brilliant, gorgeous, talented, fabulous? Actually, who are you not to be? You are a child of God. Your playing small does not serve the world. There is nothing enlightened about shrinking so that other people won’t feel insecure around you. We are all meant to shine, as children do. We were born to make manifest the glory of God that is within us. It’s not just in some of us; it’s in everyone. And as we let our own light shine, we unconsciously give other people permission to do the same. As we are liberated from our own fear, our presence automatically liberates others.”

Let us incorporate this perspective into every communication and act of Occupiers in every town and city of the world. Success of the Occupation will be measured by the degree to which we can eradicate fear from the hearts of both the 99% and the 1% as well, for the One Percent also suffers from bondage. Though they fortify themselves with wealth, it is only a wealth of power and dominance which is antithetical and incompatible with actual freedom, justice and happiness. Injustice for anyone breeds injustice for all, and as Rev. Martin Luther King, Jr. reminded us many years ago, “None of us is free until all of us are free.”

‘Josh’

Guy Josserand III

guyjosh3@gmail.co

Is Capitalism in crisis?

November 26, 2011

One of my correspondents recently alerted me to a review of David Harvey’s book, The Enigma of Capital, and the crises of capitalism. I’ve not seen the book, but if the review is a faithful description, the book seems to be well worth reading.

I’m not inclined to frame my analyses and prescriptions in terms of competing ideologies because that leads to immediate resistance by the true believers on one side or another. Rather, we need to encourage people to think outside of their comfortable boxes by pointing out implicit assumptions and evident dysfunctions, and suggesting structural as well as policy changes that show promise of providing better outcomes.

Of course, what constitutes a better outcome will always be a point of disagreement based on the fundamental values, attitudes, and beliefs that different segments of society hold dear (e.g., the 1% vs the 99% that the Occupy movement has been highlighting). Besides that, our desires and expectations must ultimately adjust to the reality of our planetary limits to physical growth.

Based on the review, the points that I may agree or disagree with Harvey about are inserted in red in the review below.

The Enigma of Capital, and the crises of capitalism, By David Harvey

Review by Andrew Gamble

Friday, 30 April 2010

Andrew Mellon, the US Treasury Secretary during the Great Crash of 1929 and one of America’s richest men, observed that in a crisis assets return to their rightful owners. Nothing much has changed. As the present crisis has mutated from a banking crisis to a fiscal crisis and a sovereign debt crisis, bonuses continue to be paid, while the people of Greece and Iceland suffer huge cuts in jobs and services.

As the head of Citibank helpfully pointed out, “Countries cannot disappear. You always know where to find them.” Once the bubbles are burst, expectations about asset values are dashed, optimism gives way to despair, and wealth is ruthlessly redistributed. Capitalism survives by purging itself of debt and loading the costs of adjustment on the weak and the poor.

[I agree, but something needs to be said about HOW it purges itself of debt. We’ve seen very clearly in this latest cycle how the capitalists have come away whole by pushing the debt off onto the public sector by means of government bailouts. That has cause severe fiscal (budgetary) problems for governments, which now are pressured to cut spending. That is where the weak and the poor (including the “middle class”) get fleeced and sacrificed because the cuts are typically made in social spending and programs that promote the common good.]

For David Harvey, this is the latest of the great structural crises which have punctuated the development of capitalism and which signify that major limits have been reached to further growth. Crises on this view are inherent in capitalism itself, and the means by which it renews itself. Only a periodic clear-out of debt and unproductive activities creates the basis for a further leap forward.

Harvey is less interested in the detail of how the 2007-8 crisis unfolded than in understanding it as a manifestation of how capitalism works. Over the last two decades, he has become a leading exponent of classical Marxist political economy, his work known for its exceptional clarity and for integrating spatial categories into the theory of capital accumulation.

Capitalism in the last 200 years has proved itself by far the most dynamic and productive economic system known to history, but the wealth comes at a price, both for human beings and increasingly for the natural environment.

Periodically, capitalism over-expands and overshoots, encountering limits it cannot immediately transcend. This is a system which must keep expanding by at least 3 per cent a year. What drives it is the hope of profit, and this impulse comes to shape all social relations as well as nature. During booms, capital accumulates very fast, but the amount of surplus generated becomes harder and harder to absorb. The investments that have been made in the boom fix capital in all sorts of ways, in buildings, cities, regions and countries, as well as in labour forces and ways of organising production.

After a time many of these past investments no longer yield a high return and sometimes no return at all. This is what precipitates the crisis. It may take the form of a profits squeeze, caused by militant labour wresting gains from capital, or by factors depressing the rate of profit, or by too little demand. Harvey argues that the present crisis is particularly hard to resolve because it comes after a long period in which real incomes in the US have stagnated, while the wealth of the property-owning elite has soared.

The gap between what labour was earning and what it would spend was covered by credit. The average debt of per household, including mortgage repayments, was $40,000 in 1980. By 2007 it was $130,000. Getting this debt down and restarting the economy is a huge task.

[I too have been preaching that the limits to growth have been reached, and yes, however one might choose to characterize an economic system (capitalist, socialist, or otherwise), there must be a periodic “clear[ing]-out of debt and unproductive activities,” for the system to maintain its vitality, but not necessarily to make way for further growth.

I’m wondering if Harvey’s book adequately explains the phenomenon of “expansion and overshoot,” and whether or not that would also occur under his conception of a alternative non-Capitalist system. I’m also wondering about the basis for his statement that, “This is a system which must keep expanding by at least 3 per cent a year.” I’ve seen estimates that run closer to 6%. My own belief is that the proximate driver of continual economic growth is the compounding of interest that is a fundamental feature of our global monetary system, and that the surplus that is created by the economy goes largely into capital concentration and profit-seeking reinvestment, rather than to increased and more equitable consumption. Thus, we see starvation and want amidst plenty.]

Harvey is pessimistic that growth can be restarted without the infliction of quite unimaginable hardships on the many of the world’s poorest people. Capitalism survives by socialising losses and distributing gains to private hands. Harvey devotes a large part of his argument to show how this is done through the close ties of the state and finance. He calls it the state-finance nexus.

[Yes, this is an increasingly obvious point. I’m glad to see that Harvey is highlighting the “state-finance nexus.” I trace that back to the founding of the Bank of England in 1694, which established the pattern of central banking and government-banking collusion that has since spread around the world and culminated in a rather monolithic regime. But there are cracks beginning to form.]

This is not a conspiracy: both sides of the relationship need one another and support one another. There are frictions and conflicts, but in the end they work together because this is the only system anyone knows or thinks can be made to work. Michael Bloomberg, as Mayor of New York, commissioned a report which declared that excessive regulation in the US was threatening the future of the financial sector in New York.

The financial crash of 2008 destroyed the credibility of the financial growth model put in place after the last great capitalist crisis in the 1970s. It has also, as Harvey notes, put a question-mark over the continuance of US hegemony, because of the shift in the balance of the global economy towards the rising powers of India and China.

He thinks that the accumulated rigidities over the last cycle have become so great that only a very fundamental restructuring can restore the basis for renewed economic growth. But the pressure for an early return to business as usual are very great, threatening an early return of credit and debt as the only way to fuel the economy, and the eruption of another crisis in a few years.

Harvey argues that each major capitalist crisis has been worse than the last one, and more difficult to surmount. He accepts that capitalism, with all its resilience and inventiveness, is quite capable of overcoming this crisis too; but he is sceptical, and believes that this is the moment that a revived anti-capitalist movement can seize the opportunity to put forward a realistic alternative to capitalism as a way of organising the economy.

[Yes, it is evident that each successive cycle is more extreme than the last. The financial system based on interest-bearing debt is shaking itself apart.

It seems odd that he attributes “resilience and inventiveness” to capitalism. These are human qualities that might thrive in a variety of circumstances. The question is how, specifically, to support them. ]

This is perhaps where the argument is least convincing. The anti-capitalist left is fragmented and not particularly numerous. Radical political responses during previous capitalist crises have often favoured the right. The rise of China and India, both of which have continued to grow through the recession, suggests that the fundamental shift in the balance of the global economy is only just beginning, and if it continues is likely to provide huge potential for growth and absorption of surplus, provided certain political conditions are met.

This will not be easy but is certainly possible. Marx thought that no social order ever perishes before all the productive forces for which there is room in it have developed. On the evidence Harvey himself provides, capitalism still has a long way to go before that is the case, and no gravediggers are in sight.

[What are the physical limits to the application of those “productive forces?” It is evident that the masses of India and China cannot possibly achieve the levels of consumption and way of living that have prevailed in the West. The emphasis must shift from capital accumulation and increasing consumption to more equitable distribution and better quality of life for all.]

But this book is a welcome addition to the literature on the crisis. It provides a lucid and penetrating account of how the power of capital shapes our world, and sets out the case for a new radicalism and a vision of alternatives. What we need, he argues, is not just a new world but a new communism, following the failure of the old – although he does accept ruefully that using “communist” as a political label may not bring instant success in the United States.

[I guess we will need to read the book to see what Harvey has to propose in making the “case for a new radicalism and a vision of alternatives.”]

Andrew Gamble is Professor of Politics at the University of Cambridge and author of ‘The Spectre at the Feast’ (Palgrave Macmillan)

[Annotated comments by Thomas H. Greco, Jr.]

Did Libya’s Gadhafi Threaten the Global Power Structure?

November 16, 2011

From the beginning of the NATO offensive against the Gadhafi regime in Libya, there has been a lot of buzz about the real reasons behind the Western powers’ agenda for regime change. This article from the New American sketches a plausible explanation. It may have had more to do with Gadhafi’s new money plan than it did about Libya’s oil riches.—t.h.g.

Gadhafi’s Gold-money Plan Would Have Devastated Dollar

Written by Alex Newman

Friday, 11 November 2011 10:15

It remains unclear exactly why or how the Gadhafi regime went from “a model” and an “important ally” to the next target for regime change in a period of just a few years. But after claims of “genocide” as the justification for NATO intervention were disputed by experts, several other theories have been floated.

Oil, of course, has been mentioned frequently — Libya is Africa‘s largest oil producer. But one possible reason in particular for Gadhafi’s fall from grace has gained significant traction among analysts and segments of the non-Western media: central banking and the global monetary system.

According to more than a few observers, Gadhafi’s plan to quit selling Libyan oil in U.S. dollars — demanding payment instead in gold-backed “dinars” (a single African currency made from gold) — was the real cause. The regime, sitting on massive amounts of gold, estimated at close to 150 tons, was also pushing other African and Middle Eastern governments to follow suit.

And it literally had the potential to bring down the dollar and the world monetary system by extension, according to analysts. French President Nicolas Sarkozy reportedly went so far as to call Libya a “threat” to the financial security of the world. The “Insiders” were apparently panicking over Gadhafi’s plan.

“Any move such as that would certainly not be welcomed by the power elite today, who are responsible for controlling the world’s central banks,” noted financial analyst Anthony Wile, editor of the free market-oriented Daily Bell, in an interview with RT. “So yes, that would certainly be something that would cause his immediate dismissal and the need for other reasons to be brought forward [for] removing him from power.”

According to Wile, Gadhafi’s plan would have strengthened the whole continent of Africa in the eyes of economists backing sound money — not to mention investors. But it would have been especially devastating for the U.S. economy, the American dollar, and particularly the elite in charge of the system.

“The central banking Ponzi scheme requires an ever-increasing base of demand and the immediate silencing of those who would threaten its existence,” Wile noted in a piece entitled “Gaddafi Planned Gold Dinar, Now Under Attack” earlier this year. “Perhaps that is what the hurry [was] in removing Gaddafi in particular and those who might have been sympathetic to his monetary idea.”

Investor newsletters and commentaries have been buzzing for months with speculation about the link between Gadhafi’s gold dinar and the NATO-backed overthrow of the Libyan regime. Conservative analysts pounced on the potential relationship, too.

“In 2009 — in his capacity as head of the African Union — Libya’s Moammar Gadhafi had proposed that the economically crippled continent adopt the ‘Gold Dinar,’” noted Ilana Mercer in an August opinion piece for WorldNetDaily. “I do not know if Col. Gadhafi continued to agitate for ditching the dollar and adopting the Gold Dinar — or if the Agitator from Chicago got wind of Gadhafi’s (uncharacteristic) sanity about things monetary.”

But if Arab and African nations had begun adopting a gold-backed currency, it would have had major repercussions for debt-laden Western governments that would be far more significant than the purported “democratic” uprisings sweeping the region this year. And it would have spelled big trouble for the elite who benefit from “freshly counterfeited funny-money,” Mercer pointed out.

“Had Gadhafi sparked a gold-driven monetary revolution, he would have done well for his own people, and for the world at large,” she concluded. “A Gadhafi-driven gold revolution would have, however, imperiled the positions of central bankers and their political and media power-brokers.”

Adding credence to the theory about why Gadhafi had to be overthrown, as The New American reported in March, was the rebels’ odd decision to create a central bank to replace Gadhafi’s state-owned monetary authority. The decision was broadcast to the world in the early weeks of the conflict.

In a statement describing a March 19 meeting, the rebel council announced, among other things, the creation of a new oil company. And more importantly: “Designation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.”

The creation of a new central bank, even more so than the new national oil regime, left analysts scratching their heads. “I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising,” noted Robert Wenzel in an analysis for the Economic Policy Journal. “This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences,” he added. Wenzel also noted that the uprising looked like a “major oil and money play, with the true disaffected rebels being used as puppets and cover” while the transfer of control over money and oil supplies takes place.

Other analysts, even in the mainstream press, were equally shocked. “Is this the first time a revolutionary group has created a central bank while it is still in the midst of fighting the entrenched political power?” wondered CNBC senior editor John Carney. “It certainly seems to indicate how extraordinarily powerful central bankers have become in our era.”

Similar scenarios involving the global monetary system — based on the U.S. dollar as a global reserve currency, backed by the fact that oil is traded in American money — have also been associated with other targets of the U.S. government. Some analysts even say a pattern is developing.

Iran, for example, is one of the few nations left in the world with a state-owned central bank. And Iraqi despot Saddam Hussein, once armed by the U.S. government to make war on Iran, was threatening to start selling oil in currencies other than the dollar just prior to the Bush administration’s “regime change” mission.

While most of the establishment press in America has been silent on the issue of Gadhafi’s gold dinar scheme, in Russia, China, and the global alternative media, the theory has exploded in popularity. Whether salvaging central banking and the corrupt global monetary system were truly among the reasons for Gadhafi’s overthrow, however, may never be known for certain — at least not publicly.

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A Report on Popular Assemblies: Insights for the Occupy Movement

November 1, 2011

Tom Atlee alerted me to this report which I think provides some good insight into the popular movements that have been ongoing in Europe over the past few months. It may be helpful in determining how the Occupy movement might avoid losing momentum and move on with strength to the next level of planning and organizing. What comes after the protests and expressions of dissatisfaction? Is it really necessary to reach consensus in presenting demands and moving toward positive action? –t.h.g.

Occupy to Self Manage
By Michael Albert

http://interactivist.autonomedia.org/node/33609

I have yet to see my nearest large occupation, Boston, or the precursor of all U.S. occupations, Wall Street. Instead, I have been on the road for the past six weeks in Thesselonika and Athens Greece; Istanbul and Diyarbikar Turkey; Lexington, Kentucky; London, England; Dublin, Ireland; and in Barcelona, Madrid, and Valencia Spain.

In all these places, I talked with diverse individuals at many meetings and popular assemblies. I met people involved in occupations, as well as audiences assembled by my hosts to hear about participatory economics. Beyond addressing assigned topics, my own priority was to learn about local movements. I repeatedly asked what folks struggling for many months wished to say to other folks first embarking on similar paths.

Boredom, Disempowerment, and Consensus Obstruct Growth
In Greece and Spain, a single message predominated. It had nothing to do with analyses of capitalism or other analytic focuses. Instead, Greek and Spanish activists reported that they had massive assemblies in widespread cities and their occupations grew, grew, grew, so that assemblies were up to 12,000, 15,000 – and then they shrunk, shrunk, shrunk, so that assemblies are now not meeting, or are meeting in the hundreds, or less.

Yet I heard, time after time, that nothing had diminished regarding the population’s rejection of unfolding injustices. The people remain fed up in huge numbers and still turn out massively for demonstrations, marches, and strikes. So why were most people who were rallying and marching no longer assembling? The reply I heard at every stop was that the decline of the assemblies wasn’t due to repression, or to people being co-opted, or to people being tricked or saddened by media distortion or dismissal. In fact, the assemblies shrinking wasn’t due to anything anyone else did to the assemblies, or said about them, or didn’t do to them, or didn’t say about them, activists repeatedly reported. Instead, they told me, the problem emanated from within.

For example, Greek and Spanish activists said that at assemblies initially people spoke with incredible passion of their plights and desires. Their voices often broke. Their hands shook. Each time someone rose to speak, something real, passionate, and persistent happened. It was enchanting and exciting. People were learning not only new facts and interpretations – and, indeed, that kind of learning was relatively modest – they were also learning new confidence and new modes of engaging with others. But after days and then weeks, the flavor of the talks shifted. From being new folks speaking passionately and recounting their reasons for being present and their hopes for their future by delivering deeply felt and quite unique stories, the speakers shifted toward being more seasoned or habituated folks, who lectured attendees with prepackaged views. The lines of speakers became overwhelmingly male. Their deliveries became overwhelmingly rehearsed. Listening to robotic repetition and frequent predictable and almost text-like ranting got boring and alienating. Sometimes it was even demeaning.

At the same time, new people, who were still far more prevalent, didn’t know what to do while they were occupying. We could assemble, they reported. We could talk and engage with each other. We could listen to others and sometimes debate a bit – the Greek and Spanish Assemblers reported – but, how long could we do that and feel it was worth the time we had to spend away from our families, friends, and jobs, not to mention from rooms with a roof?

As they first formed, the assemblies were invigorating and uplifting. We were creating a new community, I was told. We were making new friends. We were hearing from new people. We were enjoying an environment where dissent was the norm. But as days passed, and then weeks, it got too familiar. And it wasn’t obvious to folks what more they could do. There weren’t tasks to undertake. We weren’t being born anymore, we were dying. It was hard. For many it was impossible to keep learning and keep contributing. There was a will, but there was not a way. Folks didn’t have meaningful things to do that made them feel part of a worthy project. We felt, in time, only part of a mass of people.

After a time, many asked, why should I stay and listen to boring talks? Why should I be hugely uncomfortable and cut off from family and work, if I have nothing to do that is constructive, nothing that is empowering, nothing that furthers worthy aims? And so people started to attend less, and then to leave.

Another factor that was initially exciting but later became tedious, was seeking consensus. At first it was novel. It implied trust, which felt good. It implied shared intentions, which felt inspiring. But after awhile, seeking consensus became tortured, a time waster, and its reason for being the only decision making approach became steadily less compelling.

Why can’t we arrive at decisions which some people do not like and don’t even want to participate in? Why can’t we arrive at decisions, and have a strong minority that dissents, and then respect that minority, and even have it pursue other possibilities to see their worth? Why do we allow some small group to cause discussions to continue without end, turning off many from relating when the small group has no legitimate claim to greater influence than anyone else – save that our mode of decision making gives them a veto?

Folks recounted all these dynamics very graphically and movingly. No one said that people stopped participating in assemblies because of fear or the cops or depression over the newspapers. No one said people left because they had developed doubts about protest or resistance, much less about the condition of society. Instead, everyone I spoke with, and it was a lot of very committed people, told me participants left due to lacking good reasons to stay. The bottom line was that the assemblies got tedious and, ironically, even disempowering. Folks wondered, why must I be here every day and every night? The thought nagged. It led to legions moving on.

Making the Very Good Even Better
What is the solution, I asked, in each new city, and we discussed possible answers. Occupy but better yet, self manage, I was told. The former option is basically passive – the latter is active and yields tasks and opportunities to contribute.

Grow in numbers and awareness, but those who become well learned must stay in touch with new people, and always remember that new people’s involvement matters most. Otherwise old timers are getting more knowledgeable but also more aloof, and new people will not stay.
Why not have classes for learning? Why not have activities for creating? Why not have actions for winning changes? Always speak to the new people. Always speak from experience, from events, not from preconceived lines. Always involve yourself and new people in tangible and worthy activity. Make the options evident and easy to become involved with.

Of course some things can’t be solved at occupations themselves. Sleeping out is a young person’s passion – but not an option for everyone. In Dublin, this was particularly evident. So, while sleeping in an occupied space makes sense for some young or homeless folks, why not proactively take for granted that many other folks, particularly with families, will not and cannot sleep under the stars? Why not have a program of activities that returns people to their home locales for organizing purposes each night, or even for all but the explicit time of assembly meetings, perhaps?

Ideas that resonated in the many discussions, and that activists involved felt needed preponderant support, included: once an occupation has a lot of people, have subgroups initiate other occupations in more places, all federated together and providing one another mutual aid. In the most local, neighborhood occupations, visit every home. Talk with every resident. Involve as many neighbors as possible. Determine real felt needs. If what is most upsetting neighbors is housing concerns, daycare issues, traffic patterns, mutual aid, loneliness, whatever, try to act to address the problems.

Have occupations self manage and create innovations artistically, socially, and politically. Have occupations occupy indoors, not just outside. It is a leap, perhaps, but not much of one. In Barcelona and Madrid – some have tentatively begun occupying abandoned apartments and other buildings, preparatory, I believe, to inviting the homeless to dwell in them, as well as to using them for meetings and the like. In Valencia I was at a very fledgling university occupation, begun, indeed, after a talk. But to occupy buildings, especially institutions like universities or media, isn’t just a matter of call it, or tweet it, and they will come. It is a matter of go get them, inform them, inspire them, enlist them, empower them, and they will come.

In Greece and Spain, and to an extent the other venues I visited too, violence was another focus. All who I talked with agreed it was a suicidal approach on two counts. First, violence is the state’s main strength. Shifting the terms of conflict toward violence shifts it precisely where the state and elites want it – toward their strength. Second, violence distorts the project. It makes it inaccessible for many. It makes bystanders critical. It diminishes outreach, and outreach is the basis of all gains.

I have been to Greece a number of times, and in earlier trips this view was quite weak among young Greeks, who were more typically ready and eager to rumble. But now the non violence stance has growing traction in Greece. In Spain, from the start, it was predominant and Spanish activists have successfully avoided giving the state an excuse for violence, thus causing every act of violence by the state to reverberate to its disadvantage.

Forget about violence and rioting, develop campaigns emanating from occupations, which means, said activists in Spain, developing demands to fight for. Indeed, over and over activists involved asked about demands that could unite constituencies and which could be fought for in creative and participatory ways so that victories were possible which would really matter to people’s lives and enthusiasm and spur further struggle. They felt that while the open ended character of dissent worked fantastically initially, and was warranted while waiting for enough outreach so demands would represent a real constituency’s views, not just those of a few leaders, over time, one needs focus.

Some suggestions for demands that arose were welcome. Others less so. For example, everyone liked demanding big cuts in military spending and reinstatement and enlargement of funds for social programs. But what folks really liked was when that demand was explored and enlarged to include transforming the purposes of military bases that would otherwise be shrunk or closed due to budget cutting to instead stay open and do worthy public works such as building low income housing, first for base residents who would need and appreciate it, and then for the homeless.

And regarding the homeless, a demand that hit home was freezing foreclosures, returning homes, distributing vacant homes, housing the homeless – including the idea of enacting occupations to undertake these results directly, a process that has begun in Barcelona and Madrid which also have robust movements to block foreclosures.

Another approach that seemed to gather considerable support was to demand full employment. But that wasn’t all. Recognizing the lack of current demand for produced goods people realized a sensible full employment demand would require also reducing the work week by 10 – 25 percent, depending on the country’s unemployment rate. Of course if most people saw their incomes decline by a corresponding amount, they would face catastrophe, and thus the reduced hours demand has to be combined with a demand that most people would incur no loss of income. (Living wage policies and redistributionist progressive taxation would also be part of the mix.) Full employment additionally strengthens working people because when they all have jobs, the threat of being fired declines to near irrelevance. Winning this demand also means workers enjoy more leisure and higher hourly wages for those in need. Additional costs would have to be born by owners, and if they don’t agree, that’s fine – workers might want to occupy those factories, and then move to self manage them.

Another popular notion was going after media. One option that resonated as a possible campaign goal, even while obviously falling short of total transformation (though certainly on the way toward it), was demanding one or more new sections of mainstream newspapers, or shows, or whatever which would be devoted to, for example, labor dissent, or feminism, or peace, or ecology, and so on. Crucially, these would not be managed in the usual corporate fashion, but, instead, via self management of their participants under the umbrella of major labor, women’s, peace, or ecology organizations, for example.

In these exchanges, activists were imagining a worldwide campaign against mainstream media, against military spending, for low income quality housing, and for full employment including accompanying income redistribution and increased leisure. They envisioned these campaigns unifying protest into resistance and then unifying resistance into creative self management, even as each occupation also related to its own local concerns.

Self Managements!
Occupations – or what might come to be known, in time, as self managements – would occur in local neighborhoods and federate up to cities and beyond, but also at the entrances to, and perhaps even inside, mainstream media, and at military recruiting stations and bases, at government ministries and branches, and finally, one can envision, even at factories and other workplaces. And in such endeavors not everyone would have to sleep outdoors but everyone would have to give some of their time, resources, insight, and energy to aid one or another campaign of the overall project.

The revolution, so to speak, is not immediately at hand. In my youth we bellowed – “We want the world and we want it now!” It was fine as a rousing chant. But we need to also understand that it takes time, it takes sustained effort, traversing not weeks or months, but years.
Indeed, even with the incredible speed and ingenuity of current outbreaks of activism, there are undeniably pessimistic scenarios in which occupations wind down and then demos happen for a time but manage to win only minor if any gains until movement morbidity sets in. This is what the Greeks and Spaniards are trying to avoid. It is why they are beginning new kinds of occupations aimed at media, housing, universities, and at the transformation of budgets, and soon, perhaps at hiring and firing. Projects that are designed to enhance and widen participation in ways leading to massive involvement of masses of people – all knowing what they want and how they can contribute to attaining it.

There are, however, also optimistic scenarios in which occupations diversify and morph into self managing projects radiating out campaigns for change while also welcoming into sustained participation countless actors of all ages and orientations. In this picture, daily marches to support other campaigns in a city – like in New York currently – with growth in numbers and confidence, leads to empty buildings becoming residences and meeting places, to mainstream media businesses becoming targets for occupation, and likewise for universities, and other workplaces of all kinds. Simultaneously, local neighborhoods generate their own assemblies, again, like in New York, initiated by the residents who had been schooled in the earlier, larger, city-wide endeavors, and then local participants patiently and empathetically enter every house, every kitchen and living room, and elicit desires, and, in time, participation.

Paths Forward
Envisioning all this and much more, once people’s ambition is unleashed from the shackles of daily pessimism, was not hard for folks I talked with. The optimistic path is a scenario involving planting the seeds of the future in the present. It is a scenario that marshals energy and insights to building alternatives, but also winning gains now all fought for and implemented in ways that build desires and organization aimed at winning still more gains in the future.

We need a sense of proportion and pacing. The occupations now underway still involve only a small fraction, indeed a tiny fraction, of the people in pain and angry about it. To grow, the occupations need to very explicitly conceive themselves in ways that address immediate needs, are aimed at viable and worthy long term goals, and develop modes of participation that cause normal folks, enduring normal harsh conditions, to feel that giving their time makes good sense because it can eventually lead to a new social system with vastly better outcomes than those presently endured. Occupations that began in response to economic insanity need, as well, to broaden and adopt a more encompassing focus taking into account not only the economy, but also, and equally, matters of race, gender, age, ability, ecology, and war and peace. This is what makes a movement a threatening project able to induce capitulation from authorities afraid to make it grow even larger. It is what makes a movement worthy of winning, as well.

We need not only patience in the face of a long struggle, but also a sense of optimism and desire. The occupations are a start, a veritable firestorm of initiation, and they already have vastly wider support than their direct participation evidences. There is a possibility lurking in these events that is awesome in its potential implications. We should all be patient and keep our heads, yet we should all also realize that this may be a very special time, especially for young people, during which it is possible to make an indelible, enduring, and incredibly desirable mark on history.

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