Showing posts with label bush failure. Show all posts
Showing posts with label bush failure. Show all posts

Saturday, September 12, 2009

The Impotent Empire

by Len Hart, The Existentialist Cowboy

Two wars against Iraq have not brought democracy, freedom or security to the people. Yet --both wars may have accomplished what their most vociferous advocates had hoped, that is, the enrichment of the US 'ruling elite' of just one percent of the total population, the US oligarchy. The peoples of Iraq and Afghanistan suffer still under an imperial yoke! Terrorism --a transparent 'cover' --was not unaffected! In fact, terrorism is always worse under GOP regimes, as if by design. [See also: Why the CIA is the World's Number One Terrorist Organization]
It was part of a historic pattern in US foreign policy to tell the American people that war was necessary to defend the United States against a threat, or to bring liberty and democracy to other countries, while the real motives for war - the profits of corporations, the control of vital raw materials, the expansion of the US empire - were concealed.

--Howard Zinn, The Unraveling of the Bush Presidency
According to Zinn, The fall of the American empire may be more precipitous than that of Rome which, in retrospect seems to have taken place in slow motion. A date of 478, the date the last 'emperor' was driven from the throne, is often said to have been the official fall. But it was a long process and it is conceivable that it was little noticed at the time. It was not an electronic age.

At home, the US PATRIOT Act granted sweeping state powers to intercept communications and conduct searches without warrants! The right wing monopoly media never bothers to ask: how does one wage war for freedom abroad while subverting it at home? How does a dictatorship bring 'freedom' to conquered peoples?

During the Bush regime, Dick Cheney lobbied the Senate to defeat a bill that would have banned torture. He succeeded! In 2006, Congress passed and sent to Bush a bill that allows the CIA to continue torturing people 'suspected' of being terrorist. The practice is conducted in an American gulag of secret CIA prisons abroad.

Citizens living within the US were no better off. The bill --unconstitutionally --ended the right of habeas corpus for anyone, including US citizens, whom the President or the secretary of defense may deem to be `unlawful enemy combatants'.

In 2006 Congress passed a military budget of $500 billion and arms and oil firms got huge profits, while education and medical care were cut. Chief Executive Officers got 400 times the wage of the average worker, while the minimum wage stayed where it was ten years ago, at $5.15 an hour.

As this blog has pointed out: terrorism is always worse Under GOP regimes. Zinn characterizes American foreign policy in a phrase: "an old way of thinking!". Zinn is right to term it a 'destructive script' repeated at Wounded Knee, the invasion of Cuba, Hawaii, the Philippines, and Central American nations such as El Salvador and Nicaragua. According to the US State Department, the US intervened militarily 103 times in foreign countries between 1798 and 1895. Zinn also connects "internal" imperialism with the "external" variety in Iraq and Afghanistan.
In Iraq, in Afghanistan, and at home, the position of the globe's "sole superpower" is visibly fraying. The country that was once proclaimed an "empire lite" has proven increasingly light-headed. The country once hailed as a power greater than that of imperial Rome or imperial Britain, a dominating force beyond anything ever seen on the planet, now can't seem to make a move in its own interest that isn't a disaster. The Iraq government's recent offensive in Basra is but the latest example with -- we can be sure -- more to come. ... It's called A People's History of American Empire. It's a gem and it's being published today.

--Tomgram: Howard Zinn, The End of Empire?
In the twilight of the Roman Empire, the Emperor Valens could not raise an army. The battle of Adrianople was fought between barbarians for and against Rome! The US, most noticeably under Bush Jr, recruited among those who are consistently 'left behind' by GOP regimes. These people are found throughout a GOP waste-land economy.

The real 'dirty work' is outsourced to mercenaries --just like Rome! There is a 'living' in 'killing' as Blackwater will testify, hopefully, at the war crimes trial of US war criminals.

Many writers blame the rise of Christianity for the fall of Rome. Many found it impossible to render unto both Caesar and God. Cultism was as rampant throughout the latter empire as wingnuts in America. 'Christians' were one of many strange cults and still are, stranger still in the US specifically. All are symptomatic of needs not met by empire.

Nothing has changed. It is a subtle argument that Rome did not fall but was supplanted from within and yet survives in the form of the Roman Catholic Church.

The many who saw in Bush the new Richard Coeur de Lion may still be suffering from the shock as well as the humiliation this would-be 'Richard' has brought upon America. So humiliating his downfall, the GOP did not even bother to steal the election for McCain. Better to let Obama preside over what may be this 'empire's' inevitable fall!

Gore Vidal dates the end of the American empire to a time during the Reagan administration when the US became a net debtor nation. But for a brief turnaround under Clinton, the tend lines begun with Reagan resumed and, as a result, we have become a vassal state of China which boasts the world's largest positive current account balance; the US is on bottom with the world's largest negative current account balance. [Source: the CIA's 'World Fact Book'] Even so, America is a different case. Unlike Rome, the US rise to empire was rapid, the result of allied victory in WWII. Unlike the slow fall of Rome, our fall will be as rapid as was our rise to power and global prominance. Gore Vidal believes our fall was begun the day the US became a net debtor nation and that, I believe, occurred in the RR administration. By that criterion, we are like hold-outs in Rome, living among the shadows of ruins.

The American empire began with two acts of needless savagery which equal or surpass even the genocide of the Native American, and that is, the dropping of nuclear weapons on Hiroshima and Nagasaki. The lives of some 200,000 civilians were taken in a flash because imperial Washington wanted to make a point!

But what point? The surrender terms offered before the nukes were dropped are verbatim those signed later on the Battleship Missouri. For what noble principle were the lives of some 200,000 civilians sacrificed?
Leo Szilard, a Hungarian-born scientist who played a major role in the development of the atomic bomb, argued against its use. "Japan was essentially defeated," he said, and "it would be wrong to attack its cities with atomic bombs as if atomic bombs were simply another military weapon." In a 1960 magazine article, Szilard wrote: "If the Germans had dropped atomic bombs on cities instead of us, we would have defined the dropping of atomic bombs on cities as a war crime, and we would have sentenced the Germans who were guilty of this crime to death at Nuremberg and hanged them."

--Mark Weber, Was Hiroshima Necessary?
It's never too late to do the right thing!

Gibbon, in his monumental 'The Decline and Fall of the Roman Empire' identified major developments leading to the fall of empire, most prominently a 'loss of civic virtue' and a series of disastrous barbarian incursions.

The 'Praetorian Guard' assumed power. And, if history is any guide, we should not be surprised if our own Military/Industrial complex, already the 'enforcement arm' of the nation's ruling elite of just one percent of the total population, should decide to cut out the middle man. Should this happen, the office of 'President' may remain but 'appointed' by the Pentagon as Roman Emperors were 'selected' by the Praetorian Guard.

Thursday, February 19, 2009

Screw the Big Banks! Bailout the Small Depositors!

by Len Hart, The Existentialist Cowboy

It was last fall, as Americans dared hope that a new administration would take office just in time to save America, Bush announced a first big 'bailout' which would, we were told, prevent a financial collapse, a great depression, a panic! Not least among many reasons the bailout failed is the fact that the wrong people got the money. 

Although Richard Nixon had famously claimed "We are all Keynesians now", nothing could be further from the truth now.Thanks to the misplaced reverence for Augustus Reagan, we are all still Friedman monetarists --not Keynesians. That is why the bailout failed and it is the reason future bailouts will fail unless something is done to address the root cause of collapse: the wrong people got the money! 

It was only last fall that the FED and officials of the Treasury Department 'rode to the rescue' of all the wrong people, specifically, the very financial institutions that created this mess to begin with. In the wake of all this failure, incompetence and criminality, there was great hand wringing, wailing, gnashing of teeth because the 'n' word had been uttered. Nationalize the banks! At this point, it won't make any difference.As 'the Who' famously said, 'the new boss, same as the old boss'. What is needed is not a new boss following the same, tired, failed policies. What is needed is some intelligent thinking about what drives economies! Here are some clues: banks do not drive economies. Rich elites do not drive economies. Governments do not drive economies. Big corporations do not drive economies though many board chairs are deluded and believe themselves to be 'captains of industry'. Bullshit!
More than 83 corporations have offshore subsidiaries where their funds are protected in tax havens in the Caymen islands such as: The Bank of America, Citigroup, Morgan Stanley, AIG, JP Morgan Chase, Wells Fargo, and even Pepsi and General Motors who received 13.4 billion have hundreds of millions of dollars in tax havens offshore. All these corporations receive protection from paying the US government their taxes and the loss to the US is into the 100 billion dollars of lost tax revenue.< Senator Carl Levin a democrat from Michigan and Byron Dorgan, Democrat of North Dakota requested the report to be released and are pushing for new laws prohibiting these bailout scam corporations from being tax dodgers while asking for bailouts from the taxpayer
The Government Accounting Office includes 63 of the 100 largest contractors who receive government contracts also have accounts in tax haven countries.
--Bailout Corporation Tax Havens in Caymen Islands
The bailouts failed because the wrong people got the money. The government would have done better had it just put billions of dollars in mason jars, buried them in a land fill and let the unemployed dig them up! That is as true now as when Keynes first proposed it back in the thirties. You can bet those folks would have spent the money and, by doing so, revived the collapsing, moribund GOP economy that Bush left us.  

Instead, Bush gave the money to fat cats who parked it in offshore tax havens --a fact that may be solely responsible for the worst contraction of the US economy in a quarter century, an annualised 3.8 percent in the fourth quarter of 2008! That's the worst result since 1982, the year of Ronald Reagan's big tax cut. It was also the year of the 'Reagan Recession', the worst since Herbert Hoover's GOP 'Great Depression'!
Of the 100 largest public companies, 83 do business in tax-haven hotspots like the Cayman Islands, Bermuda and the British Virgin Islands, where they can move their income into tax-free accounts. .In the list of 100 companies that GAO studied were 63 with major federal contracts, including Caterpillar, BearingPoint, Boeing, Merck & Co. and Kraft Foods. ...Legislators gave particular attention to the 14 companies on the list that received bailout money from the Treasury in the recent financial meltdown. 
--GAO Report: Off-Shore Tax Havens for Bailed-Out Companies and Government Contractors?
In the meantime, more banks are going bust. Let them fail! Fuck the banks.
With two of the nation’s largest banks buckling under yet another round of huge losses, the incoming administration of Barack Obama and the Federal Reserve are suddenly dealing with banks that are “too big to fail” and yet unable to function as the sinking economy erodes their capital.

Particularly in the case of Citigroup, the losses have become so large that they make it almost mathematically impossible for the government to inject enough capital without taking a majority stake or at least squeezing out existing shareholders.
And the new ground rules laid down by Mr. Obama’s top economic advisers for the second half of the $700 billion bailout fund, as explained in a letter submitted to
  • Congress on Thursday, call for the government to play an increasing role in the major activities of the banks, from the dividends they pay to shareholders to the amount they can pay executives.

--New York Times, Rescue of Banks Hints at Nationalization
We should have been bailing out the depositors. By 'depositors', I am not talking about big corporations, who, like the banks, have taken monies out of the US economy. For example --General Motors which pocketed $13.4 billion and then promptly squirreled it away in 11 offshore subsidiaries. GM's 'financing arm, GMAC received $5 billion in bailout and quickly exported to two offshore units. 

GMACs majority owner is the private equity firm Cerberus Capital Management LP. Boycott them!If Obama were a part of the 'revolution', he would have already nationalized the crooks, seized their assets and put the monies back into the hands of original depositors whose expenditures would most certainly revive the ruined economy that the GOP thinks it has washed its guilty hands of. The trend in which an increasing tiny elite of about one percent of the total population would end up owning more than the rest of us combined is, at last, having the effect I warned about.

The Reagan years can be summed up briefly. He doubled the size of the Federal Bureaucracy and tripled the national deficit. The most pernicious effect of GOP economic policy is the effect of declining opportunity, a corollary of decline in wealth among all but the very rich.It is merely rhetorical to ask: why does the GOP seem to repeat ad nauseam utterly failed strategies that have never been shown to work? Reagan's Budget Director, David Stockman called Reaganomics a 'Trojan Horse'. He understood that tax cuts were not intended to trickle down. 

That's just how they are sold. Rather --the tax cuts always do precisely what the GOP insiders know they will do: they enrich the GOP base! They are 'laundered' pay offs. Thanks to enlightened tax policies during the administration of FDR, the US was at its most egalitarian throughout WWII and the post war era. Things did not change dramatically until the rise of 'Reagonomics', a polite word given the transfer of wealth upward to those already rich and will only invest it offshore where it cannot possibly help provide jobs at the local level. This is truly 'mainstreet' vs 'Wall Street'.

The rise of Ronald Reagan brought with it a spreading of wealth upward to the upper classes and Wall Street insiders, in fact, an increasingly tiny elite of just one percent of the nation which owns more than 90 percent of the nation's total wealth. That fact is graphically illustrated above. The result is factually documented by the government's own agencies --Census Bureau, Bureau of Labor Statistics, Department of Commerce-BEA, et al. Income inequality is measured by what economists call the GINI index. The higher the GINI, the greater the inequality. These numbers, recognized and cited by economists from Friedman to Krugman, from Keynes to Galbraith, invariably increase during GOP regimes.Now --as the late Steve Kangas pointed out, 'conservatives' will claim that correlation is not 'causation'. I think conservatives are wrong on that point, but if, in fact, GINIS always go up under GOP regimes, what difference does it make?The pragmatic solution is simply this: fire the GOP! Permanently! 

We cannot afford to continue to support both the GOP and its elite, pampered, privileged sponsors in business, industry and government. See more about 'income inequalities' at: What do liberals believe about income inequality? Also: Myth: The rich get rich because of merit.

The 'contraction' of an economy is typically called a 'depression'. The US economy is contracting due to 1) the transfer of wealth to but about one percent of the population; 2) this 'elite' has transferred most of its wealth offshore where it has absolutely no good effect on the domestic US economy. The current collapse of the US is the end result of a trend that was begun with the passage of Ronald Reagan's infamous tax cut for his rich, elite base. The year was 1982. Historians willl write of that date that it was the beginning of the end of the American empire.
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