‘How the West Eats Its Children’

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By Thierry Meyssan

For Thierry Meyssan, by taking to the streets, the French have become the first Western population to take personal risks to oppose financial globalisation. Although they do not realise it, and still imagine that their problems are exclusively national, their enemy is the same force that crushed the region of the African Great Lakes and a part of the Greater Middle East. In order to understand the project which inextricably unites these apparently disparate events, we have to take a step back.

The cause of Western recession

International relations experienced a profound change with the paralysis of the Soviet Union in 1986, when the State was unable to control the civilian nuclear incident in Tchernobyl [1], then with the revocation of the Warsaw Pact in 1989, when the East German Communist Party [2] destroyed the Berlin Wall, and finally, with the dissolution of the USSR in 1991.

At that time, the President of the United States, George Bush Sr., decided to demobilise one million soldiers and devote the efforts of his country to its own prosperity. He wanted to transform US hegemony within its zone of influence, and expand it into that of the leader of the world, the guarantor of world stability. With that, he laid the foundations for a « New World Order », first of all in the speech he gave side by side with British Prime Minister Margaret Thatcher, at the Aspen Institute (2 August 1990), then during his speech to Congress (11 September 1990), announcing operation « Desert Storm » [3].

The world of the après-Soviet Union is one of free circulation, not only of merchandise, but also world capital, under the unique control of the United States. In other words, the passage from capitalism to financialisation – not the triumphant culmination of free exchange, but an exacerbated form of colonial exploitation of the whole world, including the West. Within the space of a quarter of a century, the major US fortunes have multiplied many times, and the global wealth of the world has increased considerably.

By allowing capitalism to run wild, President Bush Sr. hoped to extend prosperity to the world. But capitalism is not a political project, it is simply a system of logic designed for creating profit. The logic of the US multinationals was to increase their profits by delocalising production to China, where it is now possible, and where workers are the lowest paid in the world.

Those who were prepared to measure the cost of this advance for the West were few and far between. New middle classes began to appear in the third world, and although they were, of course, far less wealthy than those in the West, they enabled new, mainly Asian states, to play a rôle on the world stage. But simultaneously, Western middle classes began to disappear [4], meaning that it became impossible for the democratic institutions they built to survive. Above all, the populations of entire regions were to be entirely crushed, starting with those of the African Great Lakes. This first regional war caused 6 million deaths, in Angola, Burundi, Namibia, Uganda, the Democratic Republic of Congo, Rwanda and Zimbabwe, and was met with general incomprehension and indifference. The aim was to continue to seize the natural resources of these countries, but to pay less and less for them, which meant dealing with gangs rather than with the States who had to feed their populations.

The sociological transformation of the world is happening very fast and is clearly without precedent, although we do not have the statistical tools available today to evaluate it with precision. However, everyone can witness the increase in power of Eurasia, (not in the Gaullist sense of « Brest to Vladivostok », but that of Russia and Asia without Western and Central Europe), which seeks liberty and prosperity, while the Western powers, including the United States, are slowly and progressively declining, limiting individual freedom and ejecting half of their population into zones of poverty.

Today, the percentage of imprisonment in China is four times inferior to that of the United States,while their purchasing power is slightly higher. Objectively therefore, with all its faults, Chine has become a freer and more prosperous country than the United States.

This process was predictable from the beginning. Its application was studied for a long time. So, on 1 September 1987, a US forty-year-old published a page of counter-current publicity in the New York Times, the Washington Post and the Boston Globe. He warned his compatriots about the rôle that President Bush Sr. was planning to allocate to the United States – to assume and finance out of their own pockets the responsibility for the developing « New World Order ». People read it and laughed. The author of these texts was real estate promoter, Donald Trump.

The application of the economic model to international relations

One month after the attacks of 11 September 2001, US Secretary of Defense Donald Rumsfeld nominated his friend Admiral Arthur Cebrowski as Director of the new Office of Force Transformation. He was tasked with changing the culture of the entire US military in order to enable it to respond to a complete change in its mission

There was no longer question of using US armies to defend principles or interests, but to use them for a reorganisation of the world by dividing it into two parts – one one side the states integrated into the globalised economy, and on the other, the others [5]. The Pentagon would no longer fight wars in order to steal natural resources, but to control access to those resources by the globalised nations. A division directly inspired by the process of globalisation which had already trashed half of the Western populations. This time, it was half of the world’s population which was to be excluded [6].

The reorganisation of the world began in the political zone known as the « Greater Middle East », that is to say stretching from Afghanistan to Morocco, with the exception of Israël, Lebanon and Jordan. This brought about the alleged epidemic of civil wars in Afghanistan, Iraq, Sudan, Libya, Syria and Yemen, which has already caused several million deaths.

Like a monster eating its own children, the global financial system based in the United States faced its first crisis in 2008, when the subprime bubble burst. Contrary to a commonly-held belief, this was absolutely not a global crisis, but a Western problem. For the first time, the NATO states experienced the first consequences of the policy they were supporting. Yet the upper Western classes changed nothing in their behaviour, as they witnessed with compassion the wreck of the middle classes. The only notable modification was the adoption of the « Volcker rule » [7], which forbade banks from profiting from information obtained from their clients in order to speculate against their interests. But while conflicts of interest enabled a number of crooks to get rich fast, they are not the root of the problem, which is far more wide-reaching.

The revolt of the Western populations

The revolt of the Western middle and working classes against the globalised upper class began two years ago.

Aware of the Western recession as compared with Asia, the people of the United Kingdom were the first to attempt to save its life-style by leaving the European Union and turning to China and the Commonwealth (referendum of 23 June 2016) [8]. Unfortunately, the leaders of the United Kingdom were unable to conclude the agreement they hoped for with China and experienced great difficulty in reactivating their links with the Commonwealth.

Then, witnessing the collapse of their civil industries, a part of the United States voted, on 8 November 2016, for the only Presidential candidate who was opposed to the New World Order, Donald Trump. He spoke of a return to the « American dream ». Unfortunately for his voters, although Donald Trump began to question the rules of globalised commerce, he had no team with him apart from his family, and was only able to modify, but not change, the military strategy of his country. Almost all of the general officers had adopted the Rumsfeld-Cebrowski ideology, and could no longer imagine themselves in any other role than defenders of financial globalisation.

Aware of the collapse of their national industry, and certain that they would be betrayed by their upper class, the Italians voted, on 4 March 2018, for an anti-system party composed of the Ligue and the 5-star Movement. These parties built an alliance in order to implement social policies. Unfortunately, they were rejected by the European Union [9]. In France, tens of thousands of SME’s (small and medium-sized enterprises), subcontractors of industry, had gone bankrupt over the last ten years, but their compulsory tax deductions, already among the highest in the world, increased by 30 % over the same period.

Several hundreds of thousands of French people suddenly took to the streets to demonstrate against abusive financial measures. Unfortunately for them, the French upper classes have been contaminated by the very idea that was rejected by the United States, and therefore did their best to adapt their policies to the popular revolt, but not to change its basic causes.

If we look at each of these four countries separately, we will find four different explanations for what is happening there. But if we analyse the situation as a single phenomenon affecting different cultures, we will discover the same mechanisms across the board. In these four countries, consecutive with the end of capitalism, the middle classes disappeared more or less rapidly, and with them the political system that they incarnated – Democracy.

So either the Western leaders abandon the financial system they have developed and return to the productive capitalism of the Cold War, or they will have to invent a different organisation that no-one has so far been able imagine. Failing that, the West, which has directed the world for five centuries, will sink into a long period of internal chaos.

The Syrians were the first non-globalised People capable of surviving and resisting the destruction of Rumsfeld-Cebrowski’s infra-world. The French were the first globalised people to rise up against the destruction of the West, even if they are not aware that they are fighting the same unique enemy of all of humanity. President Emmanuel Macron is not the man for the situation, not because he has any responsibility for the system that preceded him, but because he is pure product of that system. In response to the riots in his country, he spoke from the G20 in Buenos-Aires, declaring that the meeting was a success in his eyes, (which it was not), and that he intended to advance more efficiently than his predecessors – in the wrong direction.

How to save privilege

It appears that the British ruling class has its solution – if London in particular and the Western nations in general are no longer capable of ruling the world, it will be necessary to cut one’s losses and divide the world into two distinct zones. This is the policy implemented by Obama in the final months of his presidency [10], then by Theresa May, and now by Donald Trump, with their refusal to cooperate and their ready-made accusations, first of all against Russia and now against China.

It also seems that Russia and China, despite their historical rivalry, are aware that they will never be able to ally themselves with these Westerners who have never ceased trying to carve them up. This is the source of their project, the « Eurasian Economic Union » – if the world must be split in two, each participant will have to organise its own. In concrete terms, for Beijing, this means abandoning half of its « Silk Road » project and its redeployment with Moscow only in Greater Eurasia.

How to determine the line of demarcation

For the West and Greater Eurasia, it will be necessary to determine the split line as fast as possible. For example, what side will Ukraine choose? The construction by Russia of the Kertch bridge was aimed at separating the country, absorbing the Donbass and the Azov Sea basin, then Odessa and Transnistria. On the contrary, the incident at Kertch, organised by the Western powers, is aimed at enrolling all of Ukraine into NATO before the country fractures.

Since the ship of financial globalisation is sinking, many people are beginning to save their personal interests without any care for others. For example this is the source of the tension between the European Union and the United States. As far as this game is concerned, the Zionist movement has always had a length’s lead, which explains the mutation of Israëli strategy, which has abandoned Syria to Russia, and turned to both the Gulf States and East Africa.

Perspectives

Taking into account what is at play here, it is obvious that the insurrection in France is only the beginning of a much wider process which is going to spread to other Western countries.

It would be absurd to believe that at a time of financial globalisation, a government, whatever it might be, could resolve the problems of its country without first of all questioning international relations and at the same time regaining its capacity for action. But precisely, foreign policy has been kept on the sidelines of the democratic field since the dissolution of the Soviet Union. It is both necessary and urgent to resign from almost all of the treaties and engagements of the last thirty years. Only the states which are able to re-affirm their sovereignty can hope to recover.

Translation
Pete Kimberley

[1] According to Michaïl Gorbatchev, this was the event that made possible the dissolution of the Warsaw Pact and the Soviet Union in so far as it delegitimised the State.

[2] Contrary to a commonly-held belief in the West, it was the nationalists from the East-German Communist Party (and the Lutheran churches), and not the anti-Communists (and pro-US movements), who broke down the symbol of Soviet domination, the Wall.

[3] The main purpose of the invasion of Iraq was not to liberate Kuwaït, but to use this affair to build the strongest coalition possible under US command, including the USSR.

[4Global Inequality. A New Approach for the Age of Globalization, Branko Milanovic, Harvard University Press, 2016.

[5] “The US military project for the world”, by Thierry Meyssan, Translation Pete Kimberley, Voltaire Network, 22 August 2017.

[6] It is obvious that the wars of Bush Jr. and Obama were never intended to expand the Empire. First of all because by definition, democracy can only come from the People, not imposed by bombs. And then because the United States was already a plutocracy.

[7] The ex-president of the US Federal Reserve, Paul Volcker, is on the other hand, one of the architects of global financialisation. It is Volcker who took legal action on behalf of the UNO against the people and entities who had helped Iraq to bypass the UN embargo (the « oil for food » affair). Volcker is one of the principal personalities of the Pilgrim’s Society, the trans-Atlantic club presided by Queen Elizabeth II. As such, he became the main economic advisor to President Barack Obama, and organised part of his cabinet.

[8] “The new British Foreign Policy”, by Thierry Meyssan, Translation Pete Kimberley, Voltaire Network, 4 July 2016.

[9] Replacing the European Common Market, which was originally a system for cooperation between states, the European Union, as defined by the Treaty of Maastricht, is a supranational

[10] “Two separate worlds”, by Thierry Meyssan, Translation Pete Kimberley, Al-Watan (Syria) , Voltaire Network, 8 November 2016.

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Iran Hawks in Washington

September 18, 2018

by Peter Koenig for The Saker Blog

Iran Hawks in Washington

No doubt, anti-Iran propaganda out of Washington abounds. There are numerous Zionist-run think-tanks (sic) that make US Foreign Policy – and are ratcheting up anti-Iran anger in the US, but targeting especially the Iranian population at home, in Iran. The notorious chief-villain of these agencies, by the way, highly subsidized by the US State Department, and perhaps even more important, by the powerful US military-security complex, is the Foundation for the Defense of Democracy (FDD). More than fifty years ago, then President Dwight Eisenhower already warned the world about the invasive, abusive and greed-driven powers of this ever-growing war industry.

Nobody really heeded his advice, least the United States with her world hegemonic aspirations. Today we have to live with it – and recognize the dangers emanating from this war complex, that controls more than 50% of the US GDP – all associated industries and services included. If peace was to break out tomorrow – the US economy would collapse. It is, therefore, the new normal that aggressions are flying out from Washington to all those proud countries that refuse to submit themselves to the dictate of the hegemon – like Iran, Venezuela, North Korea, Syria, Russia, China, Pakistan, Cuba —- and many more. The assaults on free and independent thinking nations come in the form of verbal insults, economic sanctions, tariffs, broken international and bilateral agreements – and foremost war threats and provocations. Beware from falling into the trap.

Iran is not alone. It means – moving on and living with this western imposed system – or else…

And else, means getting out of it. Unfortunately, it does little good accusing the devil overseas, like the FDD, NED (National Endowment for Democracy) and whatever else they are called. They will not go away; they just enjoy the anger they generate. And yes, there is a clear and present danger that through Netanyahu and Trump war provocations on Iran are being launched. And yes, as long as Iran is still linked to the western monetary system, and tries hard to stay linked to it, more sanctions will follow, disastrous sanctions – but disastrous only as long as Iran is tied to the western dollar-based economy. If you, Iran, move away from this massive western monetary fraud – and this will not happen over-night – you, Iran, will gradually regain your economic autonomy and political sovereignty. This is crucial.

Fighting and arguing against senseless and totally illegal sanctions and aggressions – or even begging the west to stick to the Nuclear Deal, against Washington’s reneging on the Nuclear Deal, is a waste of time. It will achieve nothing. They, the US of A, will not give in. The Israel and war industrial complex lobbies are too strong. Counting on Europe to stick to the “Deal” is not a good strategy. Even if – for their own selfish interests – the Europeans would want to maintain the 5+1 Joint Comprehensive Plan of Action (JCPOA), first, you never know whether and when they may cave in to Washington and Israel’s pressure, and second, even if they don’t, you are still linked to the western ponzy-economy through the euro and, thus vulnerable for sanctions.

Most important, however, rather than looking outside for a culprit – i.e. in Washington or Brussels, find the solution from within. There are two major obstacles to keep in mind. The first one Iran is in the process of overcoming, it’s called embarking on an “Economy of Resistance”; the second one is more complicated but not impossible – neutralizing the Fifth Column in Iran.

Economy of Resistance – is a path to self-sufficiency, economic autonomy and political sovereignty. Iran, under the guidance of the Ayatollah, has already embarked on this de-globalizing route. President Putin said already several years ago, the sanctions were the best thing that happened to Russia after the collapse of the Soviet Union. It forced Russia to rehabilitate an rebuild her agricultural sector and modernize her industrial park. Today Russia is by far the largest wheat exporter in the world and has a cutting-edge industrial arsenal. This message, Mr. Putin, transmitted during his visit to Tehran last November face-to-face to the Ayatollah.

Following the principles of a Resistance Economy implies a gradual, but eventually radical separation from the western monetary system – and adherence to the eastern alliances, like the SCO – Shanghai Cooperation Organization, the BRICS and the Eurasia Economic Union (EEU). Iran is poised to become a member of the SCO within short. These alliances are no longer trading in UDS dollars, have their own international transfer systems – separated from the western, privately run SWIFT which is totally controlled by the US banking moguls – and therefore, SWIFT is a prime instrument to impose financial and economic sanctions, by withholding or blocking international payment transfers and blocking or confiscating assets abroad.

These eastern alliances are trading in their local currencies and in the case of China and hydrocarbons, even in gold-convertible yuans. One or several new eastern monetary systems are under consideration, including by the BRICS. An important part of the eastern alliances is President Xi’s Belt and Road Initiative (BRI) – or the new Silk Road, a massive multi-trillion yuan infrastructure and transport investments plan – spanning the world from east to west with several connecting “roads”, including maritime routes. This BRI plan, recently incorporated in China’s constitution – is the vanguard for a new economic system, based on equality and benefitting all partners – a clear departure from the western “carrot and stick” approach, i.e. ‘do as I say – or else’ – sanctions will follow.

Second, and this is the real challenge – countries like Iran, Venezuela, Russia, China – and all those nations that resist the west’s attempts to conquer, command and subdue them – have a strong so-called “Fifth Column”, open and covert infiltrated western or local and western-trained and funded ‘assets’. These people are usually embedded in the financial sector, especially the central banks and in trade related activities. They are the ‘recipients’ of the messages from the Hawks from Washington – they propagate them in Iran, bring people to the streets often by paying them – to make believe that there is a strong opposition to the government.

They control the local media, publish false economic information – unemployment, inflation – and seek tightening investment links with the west. The Fifth Columnists, or Atlantists, are helping manipulating currency exchange rates, devaluations of their country’s – Iran’s – money; they are exaggerating the impact of sanctions at home to create fear and hostility against the government – in brief, they are weaponizing public opinion against their own government. They are collaborators with Iran’s enemies.

The Fifth Columnists are a dangerous, criminal and non-transparent alliance of opponents working for foreign interests, in Iran, as well as in Russia, Venezuela, China – and where ever the Washington hegemon and its dark deep masters want to bring about regime change. Neutralizing them is a huge challenge, as their activities are deeply rooted in their countries financial system, private banking and international trade.

The best way of annihilating their nefarious impact is by applying the rules of Resistance Economy – breaking loose from the western dollar system, de-globalizing the economy, finding back to political and economic sovereignty – local production for local markets with local money and local public banking for the development of the local economy; and by trading with friendly, culturally and ideologically aligned countries. If the link to the globalized west is broken, their power is gone. Iran is on the right path – the future is in the East. The greed-driven aggressive west is committing economic and moral suicide – the west has become a sinking ship.

Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for Global Research; ICH; RT; Sputnik; PressTV; The 21st Century; TeleSUR; The Vineyard of The Saker Blog, the New Eastern Outlook (NEO); and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe. He is also a co-author of The World Order and Revolution! – Essays from the Resistance.

Globalization is Over, Brexit is the Biggest Sign: The Guardian

Local Editor

De-globalizationIn an article written by Ruchir Sharma and posted by the British newspaper, The Guardian, Brexit is expected to be contagious to the extent of introducing the era of de-globalization.

What follows is the complete article:

In among the shock from the EU referendum result, the risk of contagion was raised. Analysts asked which EU country might leave next and whether this unraveling could shatter the postwar European order. A month later, it’s clear that Brexit was less a cataclysmic cause than a symptom; a manifestation of global forces unleashed by the 2008 global financial crisis, including slower growth, rising inequality, and a widening backlash against open borders and incumbent leaders.

Inside Europe the political earthquake is receding, with the installation of a new UK prime minister who, ostensibly, did not want to leave the EU. Yet even if Brexit does not herald the unraveling of Europe or of the global economy, it is the most important sign yet that the era of globalization as we have known it is over. De-globalization will be the new buzzword.

The world has entered what I call the AC era – after the crisis of 2008. It is already marked by much more upheaval than prevailed in the era before the crisis, and many of the policies and leaders that nations have embraced, hoping to ease the pain, have only made matters worse.

Worldwide, an anti-establishment revolt has been raging since the crisis. In 30 of the major democracies, the incumbent has been winning in as few as a third of national elections each year since 2008, down from two-thirds before that year. In the 20 top emerging and developed nations, the median approval rating of the incumbent leader has fallen from a high of 54% in the years before 2008, to just 37%.

Anger at incumbent governments is now widely seen as a boon to rightwing populists such as Donald Trump, Marine Le Pen, and some of the leaders of the Brexit campaign. This, however, is a revolt against the establishment, not an ideology, left or right.

In Europe and the US rightwing upstarts are exploiting the frustrations of the working class by blaming their woes on immigrants stealing jobs. But there is no such widespread rise of the populist right in Asia or Latin America, where voters have been toppling leftwing governments in favour of mainstream reformers like Mauricio Macri of Argentina, and Pedro Pablo Kuczynski of Peru. A former World Bank economist ,whose first promise to Peruvians was to rebuild “consensus”, Kuczynski is about as far from angry populism as a president can get.

The ballot-box revolts are not isolated, local events. They have sprung from slow growth in the global economy, which has fallen since 2008 from its postwar average of 3.5% to just above 2%, the level that feels like a global recession. This is the weakest recovery of the postwar era, and until recently Europe was the hardest-hit region, having suffered not one but two recessions since 2008. It has thus been fertile ground for popular anger.

The popular frustration is amplified by rising inequality. To fight the global slowdown, central banks have been pumping out easy money. Instead of fuelling wage and job growth in the real economy, as intended, much of that money has found its way into financial assets, including stocks, bonds and housing – pushing prices to record highs. Because the rich own most of these assets, inequality is widening and spreading, and wealth is massing in financial capitals like New York and London. The period since 2008 has seen weak wage growth but spectacular returns for the wealthy: in Britain, wages are up 13%, but the stock market is up 115%.

This story repeats itself in country after country. In a recent study of 46 major economies, Credit Suisse found that prior to 2007, wealth inequality was on the rise in 12 of them; but after 2007, that number more than doubled to 35,.

In that brief span, the world population of billionaires nearly doubled to more than 1,800. More than 70 of them live in London – one of the highest concentrations in the world – making the British capital a ripe target for class resentments. In England proper the Brexit vote was, in large part, a vote against London, its globalised elite, and all they stand for, including free trade and open borders.

Here too, the British revolt is less a turning point than the latest flashpoint for the negative passions of the AC era. In late 2008 the G20 gathered at a summit and vowed not to engage in the kind of trade wars that extended the Great Depression. Then they went back home and have since imposed hundreds of new barriers to trade. This bout of protectionism has helped to slow growth in global trade from better than 8% before the crisis to near zero. Britain has turned inward too, imposing more than 200 new trade barriers after the global financial crisis – third most in the developed world after the US and Germany, according to the Centre for Economic Policy Research.

The hype for globalization that excited the era before the crash has given way now to fears of de-globalization, and the measures governments have taken to buffer economies against another crisis have only deepened this self-destructive trend. Driven in part by new limits on their overseas activities, global banks have pulled back to within their home borders. Global capital flows fell from a peak of 16% of global GDP in 2007 to just 1.6% – a level last seen in the 1980s. This retreat will act as a drag on economic growth, suggesting that every country needs to downsize its ambitions, or face new outbreaks of frustration.

The anti-immigrant movements that have gathered pace are the latest proof, and they come at an inopportune time. In countries rich and poor, women are having fewer and fewer children, a trend that predates the crisis of 2008. Since 1980 the number of countries with a shrinking population of working age people has risen from 2 to 38. And one of the only ways for any country to counter the economic shock of depopulation is by attracting immigrants.

In fact, Britain’s workforce would already be in decline too, were it not for relatively strong net migration, which brought in 900,000 people over the last five years. Though the challenges of assimilating foreign workers are real, so are the economic consequences of barring them: fewer workers will mean less growth.

But perhaps this outcome is unavoidable now. In the decades before 2008, the world economy expanded at it fastest pace in recorded history, thanks in part to greater freedom of movement for goods, capital and people. Unfettered globalization lifted millions of people out of poverty in the emerging world, but it also frayed the social fabric of many western nations. Brexit is just one manifestation of the anti-globalization backlash in the post-2008 era. The champions of that backlash are pushing policies that are likely only to exacerbate the global economic slowdown.

But the message from Brexit and similar movements is clear: economic growth may have to take a back seat while political leaders work to address the anger of those who believe that globalization has left them behind.

Source: Newspapers

29-07-2016 – 14:48 Last updated 29-07-2016 – 15:27

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