Friday, August 31, 2007

Labor Day Hypocrisy

Labor Day Hypocrisy - by Stephen Lendman

Labor Day is commemorated on the first Monday in September each year since the first one was celebrated in New York in 1882. Around the world outside the US, socialist and labor movements are observed on May 1 to recognize organized labor's social and economic achievements and the workers in them. This day gets scant attention in the US, but where it's prominent it's commonly to remember the Haymarket Riot of May 4, 1886 in Chicago. It followed the city's May 1 general strike for an eight hour day that led to violence breaking out on the 4th.

Labor Day became a national federal holiday when Congress passed legislation for it in June, 1894 at a time working people had few rights, management had the upper hand, only wanted to exploit them for profit, and got away with it. It took many painful years of organizing, taking to the streets, going on strike, holding boycotts, battling police and National Guard forces, and paying with their blood and lives before real gains were won. They got an eight hour day, a living wage, on-the-job benefits and the pinnacle of labor's triumph in the 1930s with the passage of the landmark Wagner Act establishing the National Labor Relations Board (NLRB). It guaranteed labor the right to bargain collectively on equal terms with management for the first time ever.

All of it was won from the grassroots. Management gave nothing until forced to and neither did government. It always sides with business never yields a thing unless threatened with disruptive work stoppages or possible insurrection. All this is in a democracy that claims to be a government of the people, by the people and for the people, most of whom are ordinary working class ones.

Since a worried Congress passed the 1935 Wagner Act during The Great Depression, the state of organized labor declined, especially post-WW II. It accelerated precipitously during the Reagan years under an administration openly hostile to worker rights in its one-side support for management. It continued unabated, under Republican and Democrat administrations, and today stands at a multi-generational low.

Under George Bush conditions got much worse. Since coming into office in 2001, he sided with management openly on policies to strip workers of their right to organize and be able to bargain for a living wage and essential benefits. He hired anti-union officials, denied millions overtime pay, cut pay raises for 1.8 million federal workers claiming a "national emergency," and schemed to end Social Security as we know it by plotting (unsuccessfully so far) to let Wall Street sharks take it over.

Since labor's ascendency decades earlier, corporate America, in league with government, shamelessly denigrated unions and the rights of working people in them. In 1958, 34.7% of the work force was unionized, but now the figure is around 12% overall, and only 7.4% in the private sector - the lowest it's been in seven decades.

Even worse, most jobs are low-pay service sector ones because the nation's manufacturing base and many higher-paying positions in finance and technology have been offshored to low-wage developing nations. Workers there can be hired for a fraction of the pay scales here or as virtual serfs at below poverty wages as low as $2 a day or less and no benefits. They fill legions of sweatshop factory jobs in countries prohibiting unions and fair worker practice standards for Wal-Mart's "Always low prices" on the backs of ruthlessly exploited working people.

Nonetheless, on the first Monday each September, this nation "remembers" working Americans with a federally-mandated holiday in their "honor." Who's celebrating when it's disingenuously commemorated at a time worker rights are threatened, ignored, forgotten, and uncared about by heartless governments beholden to capital. They scorn working people who are no longer as deceived with meaningless bread and circus droppings at the expense of what they need most: good jobs at good pay, essential benefits, job security, and a government on their side doing what counts most - supporting their rights with worker-friendly legislation.

Workers are reminded every day that backing like that is off the table by governments shamelessly mocking their day. It's commemorated in name only by a nation beholden to capital, the corporate giants controlling it, and the best democracy their money can buy for them alone.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time.

Wednesday, August 29, 2007

The War on Working Americans - Part II

The War on Working Americans - Part II - by Stephen Lendman

This article was written to assess the state of working America in the run-up to Labor Day, 2007. Organized labor today is severely weakened following decades of government and business duplicity to crush it. Part I reviewed the labor movement's rise in the 19th century and subsequent decline post-WW II and especially in the last three decades. Hope arose for some change in the Democrat-led 100th Congress. A weak effort emerged, but Senate Republicans killed it.

Organized labor is struggling to remain relevant and claw its way back. The enormous obstacles it faces are reviewed below as well as the condition of working Americans today in a globalized world affecting their lives and welfare heading "south" in the "land of opportunity" offering pathetically little.

The Loss of High-Paying Jobs from Outsourcing Under Globalized Market-Based Rules

World trade isn't new, and the General Agreement on Tariffs and Trade (GATT) was its mid-20th century version after 23 founding nations signed it on October 30, 1947 in Geneva. Earlier in 1946, they drafted the International Trade Organization (ILO) that followed the creation of the IMF and International Bank for Reconstruction (now the World Bank) at Bretton Woods in 1944. Fifty-three nations then signed the GATT in Havana in March, 1948 as the founding international instrument governing world trade.

Subsequent rounds of negotiations followed through number eight launched in Punta del Este, Uruguay (the Uruguay Round) in 1986. It was signed in Marrakesh, Morocco in April, 1994 by most of the 123 participating countries as the updated version of the original 1947 GATT. It was then succeeded by the WTO January 1, 1995, one year to the day after NAFTA took effect as another worker rights legislative weapon of mass job destruction. DR-CAFTA followed next for the Central American countries signing on to it after El Salvador did first in March, 2006.

The WTO is well-seasoned with a corporate-friendly alphabet soup of Uruguay-negotiated agreements like the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), General Agreement on Trade in Services (GATS), Agreement on Agriculture (AoA), Agreement on Technical Barriers to Trade (TBT), and others all designed for one purpose. It's to override member states' national sovereignty so they're now governed under a uniform set of global market trading rules favoring capital.

They're designed for the Global North, giant corporations and the rich at the expense of Global South developing nations, ordinary people everywhere, concern for environmental standards as well as sanity and public safety. Along with the IMF, World Bank, and other international lending agencies, this entire structure is big capital's neoliberal scheme to commoditize everything, including people and life itself in the human genome, to strip-mine the planet for profit.

Globalized trade has a long history, but the notion of a globalized marketplace came into its own in the 1980s. It was hailed as a western, mainly US, prescription for economic growth and prosperity lifting all boats. In fact, only yachts benefitted by design so the privileged could gain at the expense of all others preyed on.

The UN's International Labour Organization's (ILO) commission on the social dimensions of globalization is comprised of representatives from labor, government and business. In 2004, it issued a damning appraisal of world trade rules harm and the subsequent distress caused by unfair practices. It ranges from how TRIPS prevents affordable generic life-saving drugs being sold in developing countries to the shifting tax burden from business and the rich to workers, and much more.

In the US and West, the damage comes from exporting jobs and offshoring manufacturing and service operations to low-wage countries. It began in the late 1950s when modest numbers of them went to Canada to take advantage of the cost savings there. The pace then quickened in the 1960s and 1970s with the exodus of production jobs in autos, shoes, clothing, cheap electronics, and toys as well as routine service work like credit card receipt processing, airline reservations and basic software code writing.

What started as simple assembly and service work early on, then took off in the 1980s. It spread up and down the value chain and now embraces almost any type good or service not needing a home-based location such as retail clerks, plumbers, and carpenters; top-secret defense research, design and selected types of manufacturing; and certain types of specialized activities companies so far have kept at home. What's moving abroad, however, is big business getting bigger with Gartner Research estimating outsourcing generated $298.5 billion in 2003 global revenues.

The toll adds up to a global race to the bottom in a country where services now account for 84% of the economy. The once bedrock manufacturing portion is just 10% and falling as more good jobs in it are lost in an unending drain. Since the start of 2000 alone, about one in six factory jobs, over three million in total, have been affected. The sector is less than a third of its size 40 years ago and one-fourth the peak it hit during WW II.

It's been devastating for the nation's 130 million working people. No longer are unions strong and workers well-paid with assured good benefits like full health insurance coverage and pensions. Today, all types of financial services comprise the largest economic sector. Much of it is in trillions of dollars of high stakes speculation annually producing wads of cash for elite insiders (when things go as planned) and nothing for the welfare of most others and the good of the country.

Worst of all is the poor and declining quality of most service sector jobs measured by wages, benefits, job security and overall working conditions. It's because fewer good ones exist, unions are weak, and workers are at the mercy of employers indifferent to their plight. People are forced to work longer and harder for less just to stay even. Jobs in this sector are mostly concentrated in unskilled or low-skill areas of retail, health care and temporary services of all kinds. They pay lots less than full-time jobs, and have few or no benefits and little prospect for future improvement. This all happened by design to crush worker rights and commoditize them like all other production inputs.

The Department of Labor now projects job categories with the greatest future expected growth are cashiers; waiters and waitresses; other restaurant-related workers; janitors and cleaning personnel; retail clerks; and child care workers - all low-skill areas. Harvard degrees aren't required. Neither are high school ones.

Most in-demand higher-skilled jobs are projected to be for nurses, post-secondary teachers and sales representatives. There are still plenty of high-tech jobs in areas like network systems and data analysis and software engineering applications and systems. But watch out. They're being lost as well to low-wage countries in an unending domestic job drain affecting all types of work able to be done anywhere. It shows why domestic job growth is stagnant (despite the hype it isn't), eligible workers are dropping out of the work force, and the decline is sure to continue unless legislation stops it. None is in sight or imagined.

The loss of good well-paying jobs means fewer high-end and a range of low-skilled ones are all that remain for vast numbers of young people whose future looks bleak. Two research studies among others highlight the problem. One by University of California staffers in 2004 estimated up to 14 million American jobs are at risk to outsourcing, and another by Gartner Research predicts as many as 30% of high-tech jobs may be lost to low-wage countries by 2015. In addition, writing in the March/April, 2006 issue of Foreign Affairs on what he calls a "third Industrial Revolution," former Federal Reserve vice-chairman Alan Blinder estimated 28 - 42 million American service sector jobs are vulnerable and could be lost to foreign labor.

In low-wage countries, they're done at far less cost to US employers in their company-owned or subcontracted out operations. Blinder added starkly "We have so far barely seen the tip of the offshoring iceberg, the eventual dimensions of which may be staggering." Veteran financial analyst and writer Bob Chapman calls this the "rape of our economy" with enormous, wrenching and destructive consequences to the lives of millions of working people pursuing an illusory American dream.

It affects the skilled and unskilled alike for all types of jobs at risk. Chapman cites India as an example noting once only low-skill and routine programming jobs went there. Now, he says, it's "software aeronautical engineers, banking, insurance, investment banking and drug research" along with many other high-end jobs where companies can hire skilled professionals at a fifth the cost of US and European ones. So why wouldn't they, and more are in a growing trend.

All types of financial jobs at all levels are also being eliminated with financial institutions moving sizeable chunks of investment banking, research, trading operations, and other professional jobs abroad for big cost savings. Deloitte Touche estimates the industry will outsource 20% of its cost base by 2010 with more to come in a continuing job drain for big cost savings abroad. The ones lost will be in financial services and most other sectors in a trend looking like it won't end until the US is as low a wage nation as those now taking our jobs.

An Unprecedented Fall in Workers' Standard of Living

Over the past 30 years, most people have seen an unprecedented fall in their standard of living. Adjusted for inflation, the average American worker now earns less than in the mid-1970s with the minimum wage unchanged at $5.15 an hour since 1997 until the 110th Congress raised it in pathetically small steps to a wholly inadequate top level. Beginning July 24, it rose to $5.85, will go to $6.55 July 24, 2008 and to $7.25 July 24, 2009. Until the increase, minimum worker pay was at the lowest point relative to average wages since 1949. It got many states, comprising over half the population, to raise their own, but it's not enough.

A recent study released by the Center for Economic Policy Research (CEPR) shows the dire state of things. It reported about one in three jobs in the country, about 47 million of them, pay low wages (defined as two-thirds the median wage or $11.11 per hour or less) with few or no benefits like health insurance, pensions or retirement accounts. It's barely enough for a family of two adults and two children to exceed the official understated poverty level of $20,444 in 2006 (or $9.83 an hour), and by this definition one in four workers (35 million) only earned poverty-level wages. But millions of others fall below it because official statistics way understate the problem, and workers earning around $11.11 an hour in cities like New York, Chicago, Los Angeles and other large ones can't get by if they have to support a family on it.

These growing millions now comprise a permanent underclass in a nation unwilling to admit what census data and private research now show. America is a rigid class society by design with extreme wealth at the top, a declining (maybe dying) middle class, and a growing underclass of low-paid workers and poor, many desperately so.

Following the inequalities of the 1920s, the nation experienced what economic historians Claudia Goldin and Robert Margo called "the Great Compression." Income gaps narrowed from the positive effects of New Deal and Great Society programs, strong unions, and an equitable tax system for individuals and corporations. From then to now, call it "the Great Expansion" of inequality with the gap between rich and most others the greatest it's been since the Gilded Age of the "robber barons" and getting worse.

Business Week magazine highlighted the trend in December, 2003 and accompanying research. It showed a decline in social mobility over the past few decades. The article was called "Waking Up from the American Dream - Meritocracy and Equal Opportunity Are Fading Fast." It noted the "Wal-Martization" of the country corporate America embraces to control labor costs by outsourcing jobs, de-unionizing, hiring temps and part-timers, and dismantling internal career ladders to boost profits at the expense of people. What's left is a proliferation of dead-end, low-wage jobs with public policy skewed to keep it that way. It needs stressing again. This didn't happen by chance. It was by design to destroy organized labor, and so far it's working.

In its most recent State of Working America - 2006/2007, the Economic Policy Institute (EPI) reports the official poverty level in 2004 stood at 12.7% or 37 million people, including 13 million children. It also showed for the first time ever, poverty in the country grew in the first three years of an economic recovery. In its study, EPI cited factors today they call "historically unique:"

-- increased globalized trade;

-- low union membership;

-- more low-skilled and high-skilled immigration; and

-- fewer favorable social norms guiding employer behavior to provide "adequate safety nets, pensions, and health care arrangements."

EPI noted the biggest challenge in today's "new economy" isn't (macro) growth but how benefits get distributed with such a high proportion skewed upward.

Left out entirely are the 16 million 2005 census figures show are on the very bottom living in "extreme" poverty that's defined as a family of four with an annual income of $9903 or less. Even more disturbing is how fast the poverty rate is increasing. The numbers of those worst off grew by 26% from 2000 - 2005 or 56% faster than for the total poverty population. Further, it happened mostly in years of economic expansion after the 2001 recession ended late that year. Notable also is the disturbing decline in higher-paying jobs leaving what's left for unskilled or low-skill workers. They pay pitiful wages and few, if any, benefits with crumbling social safety net protection left to pick up the slack.

The Oakland Institute policy think tank promotes social and economic justice. It recently reported its disturbing assessment of things saying 10% of the US population (around 30 million) "experiences hunger or is at risk of going hungry." A December, 2006 Helsinki-based World Institute for Development Economics Research of the UN University study also reported disturbing findings. They showed the richest 1% of adults owned 40% of global assets in 2000, and the richest 10% held 85% of them.

EPI reported the top 1% controls more than one-third of America's wealth, the bottom 80% has 15.3%, and the top 20% holds 84.7% of it. In contrast, the poorest 20% are in debt and owe more than they own. Globalization, automation, outsourcing, the shift from manufacturing to services, weak unions, deregulation, and other harmful economic factors all add to the problem.

Other data show an astonishing generational shift of well over $1 trillion of national wealth annually from 90 million US working class households to for-profit corporations and the richest 1% of the population. It created what economist Paul Krugman calls an unprecedented wealth disparity getting worse that shames the nation and is destroying the bedrock middle class without which democracy can't survive.

A similar conclusion also came from an analysis of income tax data by Professor Emmanuel Saez of the University of California-Berkeley and Professor Thomas Piketty of the Paris School of Economics. Both men are noted for their work on income inequality. Their research found the top 1% of Americans in 2005 (about 3 million people) got their largest share of national income since 1928 - 21.8%, up from 19.8% a year ago or a 10% gain. Further, the top 10% received 48.5% of all reported income in 2005, also the highest level since 1928, up 2% from 2004, and one-third since the late 1970s.

The top one-tenth of 1% (about 300,000 people) did best of all, to no surprise. It got as much income in total as the bottom 150 million Americans combined. In addition, while total reported income rose almost 9% in 2005, average incomes for the bottom 90% of the population dropped .6% from the previous year.

Further, the Bush administration tax cuts for the wealthy greatly widened the income gap between rich and poor that was the whole idea behind them with a healthy piece of the benefits going to big corporations. In the 1950s, they contributed an average of 28% to federal revenues. That dropped to 21% in the 1960s and about 10% and falling since the 1980s. It's happening with the corporate tax rate at 35%, but few of the giants pay it. According to the Government Accountability Office (GAO), 94% of major corporations now pay less than 5% of their income in taxes, and corporate tax payments overall are at their lowest level in 60 years. In addition, many large companies pay no tax, and some end up with sizable rebates on top of huge corporate welfare subsidies under a system of socialism for big corporations and the rich and "free market" capitalism for the rest of us.

Saez and Piketty also reported their findings may be understated because the wealthy are more likely to file late tax returns so those who did weren't included in the study. Also, the IRS acknowledges it can account for only about 70% of business and investment income, most, of course, going to high-income earners. What's missing is $300 - $400 billion a year that adds up to trillions of untaxed dollars for the rich with the rest of us having to make up for it.

Recent US Commerce Department data is also disturbing. It shows the share of national income going to wages and salaries the lowest on record with their data going back to 1929. And the Center on Budget and Policy Priorities (CBPP) finds wage and salary growth in the current recovery growing at half the average rate for post-recessionary periods since the end of WW II while corporate profits in the current period grew over 50% more than the post-WW II average. It's the first time on record, corporate profits got a larger share of income growth in a recovery than wages and salaries - 46% to 34%.

The Growth and Shredding of Social Services in America

The golden age of social service benefits and worker protections emerged during The Great Depression, but they didn't begin then. An obligation was felt to help the needy as early as colonial times but without an organized effort to do it. Back then, local towns and villages did it through the poor relief system and almshouses. That began changing as the nation became less agrarian and more industrial when a number of states added services like cash allowances, mothers' pensions and by the mid-1920s old age assistance for the blind. Also, then and earlier, the Federal government and States began recognizing the need for public welfare social insurance financed through contributions guaranteeing protection for all rather than public assistance for the needy alone.

The first instance of it began in 1908 with a Federal workers' compensation law covering some government workers. States then added their own, and by 1929 all of them had it except four holdouts. Other efforts followed including State and local retirement plans and Federal benefits and services for veterans. Even the private sector added their own with token amounts of health care, pensions, life insurance and sick pay.

The Great Depression hard times of the 1930s changed everything creating a golden age for worker rights and benefits mentioned above. It followed the roaring 1920s era of anything goes corporate greed and loose regulation. It ushered in the Roosevelt administration's New Deal to aid the needy and reform the economy when 25% of the working public had no job in 1933. Those in power feared the worst knowing they had to act to save capitalism at a time of mass hostility to it they feared might erupt in a Russian-style 1917 revolution.

They did it then like never before or since starting by passing the National Industrial Recovery Act in 1933. It was based on a "bubble up" theory of recovery to raise wages and thereby stimulate consumer purchasing power hoping it would lead to increased production and new investment. Despite good intentions, things go as planned. The Depression dragged on until the 1939 early WW II build-up began ending it. It packed greater economic punch than in earlier public sector spending. Those efforts were less for reform and more for what John Maynard Keynes recommended - upgrading infrastructure to revive durable goods production that, in turn, would revive the economy.

Still New Deal policies were remarkable in how mirror opposite they were to what's been enacted since 1980 and especially in the gilded age of George Bush. There were stimulative loans and grants to the States and landmark measures like the FDIC insuring bank deposits, the SEC regulating financial markets, and the NLRB through the Wagner Act explained above. Most important was a broad array of social programs. They included Federal emergency relief, public works and others under an alphabet soup of initiatives. They were way inadequate, but, nonetheless, tried to jump-start a moribund economy by providing substantial work and relief for the unemployed and needy.

The high water mark came in 1935 with the passage of the landmark Social Security Act. To this day, it's still the single most important piece of social legislation in our history. More than any other government program, it's the one most responsible for keeping vast numbers of elderly people out of poverty as well as providing other essential services and benefits for the needy and disabled. Other important social legislation came out as well including Unemployment Insurance with the Federal government partnered with States; the Railroad Retirement System; Public Housing; and Social Security Old-Age and Survivors Insurance.

Post-WW II there was lots more:

-- the National School Lunch Program (established in 1946);

-- Aid to the Permanently and Totally Disabled (APTD - in 1950) that later became Supplemental Security Income (SSI) in 1972;

-- Social Security Disability Insurance (SSDI);

-- Medical Assistance for the Aged (preceding Medicare);

-- Aid to Families with Dependent Children (AFDC - 1960);

--the Food Stamp Program (1964);

-- the School Breakfast Program (1966);

-- the WIC food assistance program (1972);

-- Earned Income Tax Credit (EITC - 1975);

-- Low Income Home Energy Assistance; and

-- Temporary Assistance for Needy Families (TANF - 1997 successor to AFDC that was a huge step backwards explained below), among others.

Lyndon Johnson's Great Society earlier saw other landmark social legislation with the establishment of Medicare and Medicaid in 1965. It guaranteed the elderly and indigent health care coverage at affordable, minimal or no cost when they needed it most.

That was the good news, but it changed with the election of Ronald Reagan in 1980. Mark Weisbrot from the Center for Economic and Policy Research (CEPR) called his administration's rollback of social services his "project of building a bridge to the 19th century in areas of social policy." It was that and more, but despite it, the dominant media shamelessly exalted him in life (see Mark Hertsgaard 1989 book "On Bended Knee: The Press and the Reagan Presidency") and practically deified him following his death on June 4, 2004. Left out of the eulogies was the true scorched earth legacy he left behind. His "war on international terrorism" was a devastating precursor to its updated version under the current administration. This article, however, only addresses his domestic damage on people least able to handle it.

The Reagan administration instituted a generational decline of worker rights and vital social programs. It allowed them to erode through higher payroll taxes, raising the retirement age, increasing Medicare premiums, and cutting Medicaid benefits for the poor. His years were characterized by large increases in military spending, big tax cuts for the rich and big business while slashing social benefits, union worker rights and running up huge deficits.

Discretionary domestic spending for most social programs, other than Social Security, Medicare and Medicaid, was cut by one-third from 1981 - 1988. Programs for low income earners were hard hit with a 54% cut. Subsidized housing lost over 80%, housing assistance for the elderly 47%, and training and employment services over 68%. Reagan also reduced health and safety protections and weakened federal statutes guaranteeing workers the right to organize and bargain collectively.

Beneath his avuncular persona, Reagan was callous and indifferent to notions of equal justice, civil liberties and human need. He showed it in his support for the Christian Right's hate campaign against gays and lesbians in its early days of ascendency by refusing to address the AIDS problem he allowed to become a global epidemic.

HIV/AIDS first surfaced in the US among gay men in New York and California in 1981, Reagan's first year in office. It was called a "gay disease", and still is largely today by those who demean it. Most notably, extremist Christian Right leaders call it God's revenge against gay people they say are diseased sinners. When the Centers for Disease Control first reported the outbreak they, too, stigmatized the gay community as disease-carriers calling it GRID - gay-related immune deficiency.

Ronald Reagan went along with this notion refusing even to mention AIDS or do anything to address the problem in the first seven years in office. It caused enormous setbacks for HIV/AIDS research and appalling discrimination against the infected and gay community overall. In addition, there were no government-directed efforts at prevention or education. It thereby allowed a health problem that might have been contained to become an epidemic killing a half million people in the US alone and infecting an estimated one million others now living with the disease.

Worldwide the numbers are catastrophic with an estimated 25 million deaths and another 34 - 47 million people currently infected. In addition, millions more are added to the numbers each year who might have been helped if the Reagan administration had led a worldwide effort to contain what's now an out-of-control plague in parts of the world like sub-Saharan Africa. None of this was mentioned in Reagan's eulogy that should have been a denunciation for this and his other crimes against humanity George Bush is now doing his best to match or exceed.

The GHW Bush years followed the "Reagan Revolution." They were pathetically "kinder and gentler" domestically and made worse by a "new world order" imperial agenda harming working people everywhere that's standard practice now under all Presidents. It was the same under Bill Clinton who called himself a Democrat but never governed like one. His tenure included NAFTA and WTO responsible for mass and growing poverty, human misery and ecological destruction under one-way globalized trade rules providing cover for predatory capitalism.

So-called "welfare reform" in the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) also was passed. Before it did, the needy got welfare payments through Aid to Families with Dependent Children or AFDC help. That changed in 1996 with time limits set so no one would be helped for more than five years under the new program called Temporary Assistance for Needy Families or TANF. Under it, the Federal government allots fixed block grants to the States they then administer at their discretion meaning the needy now get cheated by an uncaring state.

TANF also requires most recipients to participate in some kind of work or training to qualify for help. It doesn't matter that much of it goes to single mothers with young children needing them at home to provide care unavailable if the law prevents it. There's also no relief during recessions when jobs are lost and unskilled workers are least able to find one.

Clinton's main social initiative was his ill-conceived health care "reform." It was a complex mess based on the notion of "managed competition" and marketplace medicine instead of what's really needed in the form of a "single-payer" national health insurance program modeled on the kind in Western Europe, Canada or that all members of Congress and the administration get. They cover everyone, irrespective of ability to pay, and for US legislators and the executive it's gold-plated for life.

The Clinton plan (dubbed "Hillarycare") offered the public less choice for more affordability but wanted big insurers and HMOs to run it guaranteeing an illusion of full coverage the way it is now. Profits always trump need with insurers targeting young and healthy prospects while avoiding those posing the greatest risks.

The pace of social spending cuts accelerated dramatically under George Bush who'd eliminate them all given the choice, and he's working on it. He's against all of them to fund more tax cuts for the rich and provide multi-billions for his permanent state of war plus every imaginable weapon system the Pentagon and defense contractors want to wage them.

Bush's assault on organized labor was covered above, but he has lots more targets as well. Education is one of them in his appalling No Child Left Behind Act. It focuses on testing, not children. It's a boon to corporations supplying the materials but not to teachers who hate them. It forces them to teach "to the test" instead of educating students in course material that's the only way to run a classroom. Otherwise, kids don't learn, but that's part of the scheme as what kind of future do all but the well-off have to look forward to.

The Bush education agenda also promotes school vouchers disguising a broader goal to privatize public education and aid the white supremacist parochial part of it. Christian Right zealots support these schools because of their brand of hard right extremism dangerous to everyone outside the faithful. In most areas where vouchers are used, 80% of them are for these type schools. They renounce proved science like evolution and teach creationism instead, repackaged as "intelligent design."

They also preach an extremist Christian doctrine waging war on truth and democratic principles of a free and open society. They replace it with faith-based pseudoscience on everything from creation to HIV/AIDS to pregnancy prevention to global warming to militarism, and all the while denounce non-believers as heretics. These schools also threaten the survival of public education. They divert funding from them and violate the constitutional separation of church and state which is why the Bush administration supports them.

His administration also opposes college aid at a time tuitions and fees are more unaffordable than ever and rising much faster than inflation. An undergraduate year at Harvard now costs over $50,000 with all expenses included, but even lower-tuition state schools aren't affordable for many with the University of Illinois typical of most others. It's much cheaper than Harvard but still costs about $26,000 a year "base rate" that's unaffordable for low-income families without considerable financial aid. George Bush's solution - cut or freeze maximum allowable Pell Grants so even holding them steady means amounts offered don't keep up with rising costs and needy students lose out.

Bush's prescription for health care is no better at a time 47 million have no coverage, millions more are underinsured, and 80 million in the country have no coverage at some time during the year meaning they need to be judicious about when they're sick. Administration solutions are pathetic at best showing no intent to tackle a problem this huge. Suggested tax breaks are so inadequate, families with annual incomes under $10,000 would only save $23 in 2007. Those with higher incomes fare little better with the Bush plan only covering 9 million uninsured leaving 38 million others (and rising) with no help.

Then there's Bush's 2003 Kafkaesque Medicare Prescription Drug, Improvement, and Modernization Act (MMA) scamming seniors. It took strong-arming threats and bribes in an all-night congressional session to get it passed. Its controversial Part D costs tens of billions annually, does little for most Medicare recipients, but provides huge benefits for "Big Pharma." It's able to charge top dollar because the administration won't negotiate lower prices the way the Veteran's Administration (VA) does getting big savings on all drugs it buys so veterans today only pay $8 a prescription. Two decades ago, they paid nothing.

More social wreckage gets into each new FY budget with billions of new cuts heaped on past ones. It's to free up more funds for the military, the rich, and corporate allies with the White House now audaciously proposing a further cut in corporate tax rates. It's part of a near-three decade agenda furthering the interests of the privileged at the expense of all others. In America today, social welfare and the greater good are nonstarters.

Earlier damage included -

-- killing OSHA workplace ergonomic rules more than 10 years in the making;

-- revoking grants to study workplace safety and health;

-- cutting funding for job training; and

-- more cuts for enforcement positions at OSHA and the Mine Safety and Health Administration that was a key reason for the early 2006 Sago and Alma mine deaths in West Virginia, the latest tragedy in Utah (not earthquake caused), and the death of 60 miners and counting since January, 2006.

-- Bush also proposed paying welfare recipients below-minimum wages;

-- denying Homeland Security employees protection for being a whisleblower;

-- blocking release of funds to monitor Ground Zero;

-- ignoring New York rescue workers' health;

-- cutting health care benefits for veterans and billions more cuts for Medicare and Medicaid;

-- raising interest rates on student college loans;

-- cutting the number of WIC-eligible participants;

-- reducing the number of adults eligible for food stamps and children qualifying for school meals;

-- cutting the Commodity Supplemental Food Program, child care, Head Start, affordable housing units for the elderly, home energy assistance (LIHEAP), Employment/Training Services, and education for the disadvantaged; and

-- stiffening work requirements for two million adults (mostly single mothers) on welfare.

His administration is also at fault for the Walter Reed Hospital scandal because medical facilities for military personnel and veterans across the country are understaffed, underfunded and allowed to deteriorate under federal or private contractor management. The result is inadequate or sub-standard care for the severest of problems, and the worst is yet to come with tens of billions of new planned cuts through FY 2011. Only Bush's plummeting approval rating may slow him down. But it doesn't stop his war machine from getting all the funds it wants and lots more for the asking in supplemental add-ons.

Looking Ahead - Tough Choices with No Easy Answers

The state of working America today is bleak with few signs of improving in a globalized world of corporate omnipotence and an indifferent to hostile government. It backs the rights of the privileged while scorning the social welfare needs of all others. Somehow, some way this must change, but wishing only works if backed by effective action. A look back suggests how.

Past labor successes were noted above. What worked before can again, and there's nothing complicated about it. Above all, new leaders are needed because too many today are uninspiring at best. They must be committed and dedicated to the rights and needs of ordinary working people and be willing to go to the wall for them. Effective mass organizing is needed to build unity and strength of numbers, educate workers on what they lost, and lead the fight to win them back. It means taking to the streets, storming the halls of Congress, going on strikes, holding boycotts, doing battle when necessary that in the past meant paying for it in blood and lives.

It worked when it won an eight hour day, a living wage keeping pace with inflation, essential benefits like health care coverage and pensions, and a more level playing field guaranteeing labor the right to bargain collectively on equal terms with management. Those gains weren't handed over because change never comes from the top down. They were fought for and won with lots of blood and sweat expended to get them. Why not again?

It's called democracy, equity and justice and one thing about them is clear. Achieving and keeping them requires a strong middle class of ordinary working people that, in turn, needs a vibrant labor movement as a foundation and springboard for progressive grassroots social change. Organized labor is in tatters today at barely over 7% of private sector workers (a 100 year low). It's on life support, needs a survival strategy, and is heading for the dustbin of history only major change can avoid. The way is through organized people out-muscling organized money. It happened before and can again.

This is the great class struggle of our time against long odds for success. The stakes though are huge, and our future as a democratic society depends on the outcome as former US Supreme Court Justice Louis Brandeis explained in 1941 when he said "We can (either) have a democratic society or we can have great concentrated wealth in the hands of the few. We cannot have both." The concentration is greater than ever at a time American workers are in their weakest position in decades.

Bowed but not broken, they're in a war for survival with the rest of us, and their sovereign worker rights and ours in a free society are at stake. It's no time for timidity. It's a time for unity and pressing ahead. It happened once. Why not again, and the time to go for it is now with the rest of us pitching in to help for our own preservation and survival.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on The MicroEffect.com Saturdays at noon US central time.

Monday, August 27, 2007

The War on Working Americans - Part I

The War On Working Americans - Part I - Stephen Lendman

As Labor Day approaches, what better time to assess the state of working America. It's under assault and weakened by decades of eroding rights in the richest country in the world once regarded as a model democratic state. It's pure nonsense in a nation always dedicated to wealth and power, but don't try finding that discussed in the mainstream. Today, it's truer than ever making the struggle for equity and justice all the harder. That's what ordinary working people now face making beating those odds formidable at the least.

In a globalized world, the law of supply and demand is in play with lots more workers around everywhere than enough jobs for them. It keeps corporate costs low and profits high and growing with Business Week (BW) magazine reporting in its April 9 issue "the share of (US) national income going to corporate profits (compared to labor) is hovering around a 50 year high." BW then quoted Harvard economist Richard Freeman's research paper saying only "a global pandemic that kills millions of people" could cause a labor shortage and elevate worker bargaining power.

There's little in sight, and the result is a huge reserve army of unemployed or underemployed working people creating an inevitable race to the bottom in a corporatized marketplace. It harms workers everywhere, including in developed nations. They're outsourcing good jobs abroad to lower wage countries and pressuring workers to do more for less because they've got little bargaining power to fight back. More on this below.

Organized Labor in the US - Its Rise and Decline

Organized labor's rise began modestly and was fragile in the earliest days of the republic. It gained strength in good economic times, then lost it in downturns like the depression in 1873. By the 1880s, things were better as the nation underwent rapid industrialization. With it came rising prosperity and workers wanting a share of the benefits. They turned to unions for help with skilled artisans leading the way helping the unskilled as well in their efforts to organize.

New labor organizations arose, older ones expanded, and as they did, they grew more active and militant. It led to the "great uprising of labor" in 1886, including the landmark Chicago May 4 Haymarket Riot protesting police violence against strikers the previous day. Its impact was hugely negative at first. It forced organized labor to regroup and settle in for a long period of recovery.

This was at a time the incipient labor movement was over two million and rising beginning with its organizing efforts launching it in the 1870s. By the 1880s, it had enough strength to stage huge strikes for better pay and working conditions like the struggle for an eight hour day that had 80,000 strikers parading peacefully down Chicago's main Michigan Avenue on May 1, 1886 in what's now regarded as the first ever May Day Parade.

Workers were helped from community-based emerging independent political parties sensitive to their rights. That's unheard of today in an age where no effective political party stands for working people despite Democrats and Republicans saying they do. Workers are now on their own. They're left to struggle in a global marketplace with pathetically little help weak unions can provide.

Earlier in the 19th century, the first national union arose as workers began asserting their rights. It was called the National Labor Union (NLU), emerged after the Civil War, but was short-lived. Next came the Knights of Labor in 1869 with a mandate to protect all workers including women and blacks after 1883. They were represented by industry groups rather than trade and skill level that was common until then. Its goals were high but achievements few at a time of widespread worker repression in the 1880s. It led to its decline as a more resilient union emerged the result of disaffection with the Knights.

It was called the American Federation of Labor (AFL) and was founded by Samuel Gompers in 1886 to replace its predecessor, the Federation of Organized Trades and Labor Unions. The ill-fated American Railway Union (ARU) followed in 1893, the largest industrial union of its day for a time, and the Industrial Workers of the World (IWW) that at its peak in the 1920s had 100,000 members.

The Wobblies are still around 102 years after Big Bill Haywood, Eugene Debs and others founded the union in 1905 as a commitment to working people in their struggle with corporate employers. It's motto was "an injury to one is an injury to all," its goal was revolutionary, and it's still true to its root ideology today as stated in the current IWW Constitution:

"The working class and the employing class have nothing in common. There can be no peace so long as hunger and want are found among millions of the working people.....Between (workers and employers) a struggle must go on until the workers of the world organize as a class, take possession of the means of production, abolish the (unfair) wage system, and live in harmony with the Earth....It is the historic mission of the working class to do away with capitalism....By organizing industrially we are forming the structure of the new society within the shell of the old."

That philosophy under dedicated men like Haywood, Debs and others set the Wobblies on a collision course with government and big business that tried to crush it. During WW I in 1917, it was vicious under Woodrow Wilson's Justice Department (DOJ). It used the repressive Espionage and Sedition Acts to raid and disrupt union meeting halls across the country. It's the same tactic used today against Latino immigrants and Muslims in the concocted "war on terrorism" and the one against undocumented workers.

In 1917 and later, Wilson's DOJ acted much the same way arresting 165 Wobbly leaders on the grounds they hindered the war effort by using their First Amendment right to speak out against it. They were tried near war's end in 1918, all convicted, and given long prison terms under a Democrat President thought of reverentially today. Bill Haywood was luckier. After conviction, he was released on bail and fled to the Soviet Union where he remained until his death, but the IWW was never again the same.

They were hammered again from 1918 - 21 during the infamous Palmer Raids under Wilson Attorney General Mitchell Palmer. He targeted radical left wing groups like the Wobblies at the time of the first "Red Scare" after the 1917 Russian Revolution. It launched J. Edgar Hoover's career in the DOJ Bureau of Investigation's new General Intelligence Division that later became the FBI in 1935. The IWW is still around, still dedicated to its founding principles, but it's worldwide membership is only around 2000, mostly in the US.

The AFL fared much better. It became the largest union in the first half of the 20th century even after the founding of the Congress of Industrial Organizations (CIO) in 1935 with which it merged in 1955. Today, it's still the country's largest federation of unions. Its web site claims a membership of around 10 million workers, even after the Service Employees International Union (SEIU), Teamsters, UNITE-HERE and United Food and Commercial Workers (UFCW) broke away from the federation in 2005. The United Brotherhood of Carpenters and Joiners of America (UBC) did as well in 2001, and the Laborers International Union of North America (LIUNA) left in 2006. They formed a new Change to Win federation in September, 2005 representing about 5.5 million workers. It likely left AFL-CIO with fewer members than it claims with its true size closer to 8 million or less.

AFL-CIO's state is a metaphor for the times. Organized labor today is weak in the face of declining membership and corporate dominance with workers losing out in a globalized world. It's fall has been long-term and painful with worker rights hammered since the 1980s. It's a long way today from when the landmark Wagner Act passed in 1935 under Franklin Roosevelt. It established the National Labor Relations Board (NLRB) guaranteeing labor the right to bargain collectively on equal terms with management for the first time ever, but it wasn't an act of kindness.

It came at the height of The Great Depression when those in power feared the worst. FDR and Congress acted to save capitalism at a time they feared mass worker hostility might boil over like it did in 1917 Soviet Russia. Like all other worker victories, this one came through struggle. It was from organizing, pressing their demands, taking to the streets, going on strike, holding boycotts, battling police and National Guard forces supporting management against working people, paying with their blood and lives and finally achieving results. They got an eight-hour day, a living wage, and on-the-job benefits because strong unions went head-to-head with management and won. It's worlds different now with corporate giants in bed with friendly governments, and Democrats and Republicans vying to see which party can be more accommodative.

From the 19th century forward, it was never easy for labor from the height of the movement's strength to the present. Unions were always disadvantaged even at a time of reasonable labor-management harmony. The passage of the harsh 1947 Taft-Hartley Labor-Management Relations Act showed how tenuous their position always was. Harry Truman vetoed the bill but was overridden. He called it a "slave labor bill" and then hypocritically used it 10 times, the most ever by any President to this day. The law throttles organized labor by giving the President power to stop strikes by court-ordered injunction for 80 days. He can claim the national interest, some other one, or none at all that's always the same one - to help corporate management deny workers their rights.

Taft-Hartley is still the law and was last invoked by GW Bush in the summer of 2002 against 10,500 west coast dock workers "locked out" (not striking) by the Pacific Maritime Association representing shipping companies and terminal operators.

Earlier in 2001 and new in office, Bush showed his anti-labor stripes straightaway. He invoked the Railway Labor Act blocking a threatened strike by 10,000 mechanics, cleaners and custodians at Northwest Airlines set for March 12. He acted again against United Airlines' 15,000 mechanics in December. He also took management's side in August, 2006 against Northwest's 8700 flight attendants' planned job action against the bankrupt airline's unfair demands for huge wage cuts and increases in hours worked. Bill Clinton was just as unfriendly invoking the Railway Labor Act against American Airline's pilots and to prevent railroad strikes 13 times.

Laws like these, and Presidents' willingness to use them, crushed the spirit and letter of the Wagner Act. They greatly weakened or revoked hard won provisions, and as a consequence, diminished union clout. Taft-Hartley allows stiff penalties for union violations but minimal ones for companies. It enacted a list of "unfair (union) labor practices" prohibiting jurisdictional strikes (relating to worker job assignments), secondary boycotts (against firms doing business with others being struck), wildcat strikes, sit-downs, slow-downs, mass-picketing against scabs brought it, closed shops (in which employees must join unions), union contributions to federal political campaigns, and more while legalizing employer interventions aimed at preventing unionizing drives.

It began a process of gradual erosion of union power to bargain collectively. That's their weapon now weakened because of devious employer tactics. They can illegally fire union sympathizers (thousands each year) and get away with only minor wrist slap fines after years of expensive litigation to prove wrongdoing. Further, employers can fire workers for any lawful reason like incompetence or no stated reason at all. Even the right to strike is neutralized with employers able to hire replacements or threaten to ship jobs offshore. With government on their side, they're empowered to fire union workers and legally replace them with lower-paid scabs or Latino immigrants.

The Reagan administration marked the beginning of the current trend in its first year. He was contemptuous of organized labor while hypocritically saying "I support unions and the rights of workers to organize and bargain collectively." He showed it in August, 1981 by firing 11,000 striking PATCO air traffic controllers, jailing its leaders, fining the union millions of dollars, and effectively busting it in service to the monied interests backing him. It was a shot across organized labor's bow and a clear message to business and industry of what to expect from a friendly Republican President. Nothing changed since under Democrat or Republican administrations with workers unable to match the power and influence of capital. The toll ever since has been devastating.

Union membership has been in steady decline from its post-war high of 34.7% in the 1950s. It held fairly constant through most of the 1970s at around 24% where it stood in 1979. At the end of the Reagan era, it was down to 16.8% and is currently around 12% overall with about 36% of government workers unionized but only 7.4% of them in the private sector. It's the lowest it's been since the beginning of the mass unionization struggles of the 1930s and in the private sector in over 100 years. It's because of Democrat and Republican antipathy to organized labor and corporate threats to close plants and outsource jobs. It's forced workers to take pay cuts and fewer benefits that are dropping to where they'll be none, and they'll be on their own to live or die by market-based rules rigged against them.

George Bush supports corporate interests aiming to crush unions so they have free reign to treat workers any way they wish or go find other work. In the wake of 9/11, he took on public sector unions straightaway. He denied 170,000 new Department of Homeland Security (DHS) employees their civil service protection and right to bargain collectively. Those affected included Transportation Security Administration (TSA) newly federalized airport screeners. They lost their right to unionize in the name of national security that could as easily been for any reason or none at all. But this was just for starters. Bush also wants federal positions contracted out to private companies. That jeopardizes 850,000 federal employees likely to get lower pay, fewer benefits, loss of other unionized rights, and many of them ending up out of work.

Overall, organized workers always get higher wages and greater benefits, which explains why strong unions are vital. The evidence comes from David Sirota in his his 2006 book, "Hostile Takeover." He showed:

-- 89% of union members have employer-paid health care coverage compared to 67% for nonunion members; as fewer companies now provide it, those numbers are lower; in addition, companies continue making employees pay a greater share of the cost of coverage;

-- employers pay a larger share of union member health care premiums than nonunion members get (but the percentage is falling);

-- over two-thirds of union members have short-term disability insurance compared to about one-third for nonunion workers;

-- union members get about 26% more vacation time and 14% more total paid leave than nonunion workers; and

-- Economic Policy Institute (EPI) data show union influence gets high school graduating members about 8.8% more pay than nonunion workers.

Greater worker clout under unions is why management wants to destroy them. It's to deny working people their right to organize, earn more and get greater benefits corporations don't want to provide. It's happening in the gilded age of George Bush, and a recent example came in a ruling late last year when his administration's NLRB ruled 3-2 against registered nurses' right to union membership if they perform certain minimal supervisory duties.

It was in a case where United Auto Workers (UAW) were trying to organize nurses at a Taylor, Michigan-based hospital. US labor law doesn't guarantee supervisors the right to organize making the NLRB ruling hugely important for up to eight million workers in other trades. It may potentially deny their right henceforth to qualify for union representation if employers want to use this ruling to add enough supervisory responsibilities to employees' job descriptions to throw them into a union-exempt category.

Bush further ended the Clinton administration's regulation requiring federal agencies vet companies' compliance with the law when awarding federal contracts. He also issued harsh anti-union, anti-worker executive orders (EOs) as well as a tsunami of other repressive ones. He barred automatic union-recognition agreements on federally funded construction projects, abolished labor-management cooperation partnerships aimed at improving productivity and working conditions, and mandated contractors henceforth must inform employees they no longer had to join a union without having to tell them it's their legal right.

Just the way Ronald Reagan busted PATCO, George Bush tipped his hand straightaway in office. He's a company man and union-hater, so henceforth it's been open season on workers and their rights under his administration. His policies range from:

-- a one-sided support for management;

-- stripping workers of their right to unionize;

-- cutting pay raises for 1.8 million federal workers on the pretext of a "national emergency;"

-- denying millions overtime pay;

-- appointing anti-union officials;

-- scheming to weaken (and then end) retirement security by replacing Social Security with risky private accounts managed by Wall Street sharks that so far has gotten nowhere because of public opposition to it;

-- weakening environmental regulations and protections; and more in an endless war on workers in service to corporate interests that elected and own him.

The failed "immigration reform" legislation was, in fact, a Trojan Horse. It's down but not dead and remains a thinly veiled scheme targeting all workers. It's a dagger aimed straight at organized labor in a plan to create a workplace of unempowered serfs, a "bracero America," including US citizens having few or no benefits and no security. If this legislation ever becomes law, workers will be at the mercy of business to hire and fire them at will.

Another anti-labor tool is the repressive Department of Homeland Security (DHS) and its Immigration and Customs Enforcement (ICE) arm. It conducts paramilitary border and workplace assaults on undocumented Latino workers as part of a larger agenda to disenfranchise all working Americans and deny them the right to bargain collectively with management through unions. By targeting undocumented workers first, the eventual aim is to create a large exploitable disposable reserve army worker pool; strip all workers of their rights; empower employers to offer low wage, low or no benefit jobs; and pretty much be able to operate as they please.

The Employee Free Choice Act (EFCA) - Some Hope for Worker Rights Now Denied

EFCA was introduced to "amend the (landmark pro-labor) National Labor Relations Act (passed in 1935)" that's been systematically dismembered piece by piece ever since. Its aim was to "establish an efficient system to enable employees to form, join, or assist labor organizations, to provide for mandatory injunctions for unfair labor practices during organizing efforts, and for other purposes." On June 26, Senate Republicans blocked labor's top legislative priority by preventing the bill's supporters from getting the 60 votes needed to end debate and bring it to a vote.

For now the bill is dead, but if it ever passes, it will change federal law on worker rights. They'll henceforth be able to organize by signing cards authorizing union representation, penalize employers violating worker rights to do it, and establish new mediation and arbitration processes for first-contract disputes. It might also end or slow down the firing, demoting, laying off, or suspending without pay of over 20,000 US workers annually because of their union activities.

The bill was introduced in the 108th and 109th Republican-controlled Congresses but failed to pass. It was introduced again in the 110th Congress on February 5, 2007, got 233 co-sponsors by month's end, and passed in the House March 1, 2007 for the first time. On March 2, it was placed on the Senate calendar where leading Democrats expected it to pass despite Republican opposition. They were wrong.

That's bad news for a bill that would have won back some worker rights after decades of losing them. It's backed by over five dozen organizations including the NAACP, United for a Fair Economy, Jobs with Justice and numerous other civil, human and labor rights groups. The US Chamber of Commerce and other organizations joined with big business against the bill. They oppose all worker rights, and their lobbying paid off. They claimed the bill allowed them the right to organize before employers can explain why doing it is not in their best interest. Ignored is that union workers always have more rights that include higher pay, greater benefits and added job security. That's bad for business and why corporate giants fought to kill the bill.

They have a powerful ally in the White House making their job a lot easier. In a mid-February speech before a business lobby group, Dick Cheney announced George Bush would veto EFCA legislation if it passed on his watch. He assured those attending this administration will keep its anti-labor record unblemished on something polls show 77% of working Americans want but won't get as long as George Bush is in office.

Global Unionization - Another Potential Ray of Hope

In April editions of The American Prospect, the Washington Post and ZNet, Harold Meyerson wrote about "a radical new direction for the globalized economy" in his article titled "Unions Gone Global." He noted the United Steel Workers (USW) here are negotiating a merger with two of Britain's largest unions to create "the first genuinely multinational trade union" that with about three million members will be the world's largest. Meyerson reported the goal, as USW's Gerald Fernandez put it, is "to fight financial globalization (by) fight(ing) it globally....by building a global union (in this case a) federation of metal, mining, and general workers."

The partners in this one stated a commitment to "fund human rights and union rights in parts of Africa and Colombia" where more unionists are killed annually than anywhere else, and the country gets billions in US aid each year to help out. They also plan a global effort "to protect employees' retirement benefits" from corporate predators wanting to end them. For now, there's no way to know if the idea behind the merger will spread, whether workers here and abroad will benefit from it, or even if the USW and their British partners will follow through effectively on their committed aims to help win back what unionized workers have been losing for years.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour Saturdays on TheMicroEffect.com at noon US central time.

Friday, August 24, 2007

Market Efficiency Hokum

Market Efficiency Hokum - by Stephen Lendman

You know the story triumphantly heard in the West. Markets work best when governments let them operate freely - unconstrained by rules, regulations and taxes about which noted economist Milton Friedman once said in an interview he was "in favor of cutting....under any circumstances and for any excuse, for any reason, whenever it's possible (because) the big problem is not taxes (but government) spending.

Friedman is no longer with us, but by his reasoning, the solution to curbing it is "to hold down the amount of income (government) has (and presto) the way to do it is to cut taxes." He seemed to forget about borrowing and the Federal Reserve's ability to print limitless amounts of ready cash the way it's been doing for years and during the current credit squeeze. Friedman further added in the same interchange "If the White House were under (GW) Bush, and House and Senate....under the Democrats, I do not believe there would be much spending."

Clearly, either the Nobel laureate wasn't paying attention or age was taking its toll late in his life. Since 2001, Democrats embraced tax cutting and overspending policies as enthusiastically as Republicans with both parties directing the benefits hugely to the right pockets. They're on Wall Street and in corporate boardrooms where recipients know "free markets" work great with a little creative resource directing from Washington.

Financial Market Efficiency

In investment finance, Eugene Fama is generally regarded as the father of efficient market theory, also known as the "efficient market hypothesis (EMH)." He wrote his 1964 doctoral dissertation on it titled "The Behavior of Stock Market Prices" in which he concluded stock (and by implication other financial market) price movements are unpredictable and follow a "random walk" reflecting all available information known at the time. Thus, no one, in theory, has an advantage over another as everyone has equal access to everything publicly known (aside from "insiders" with a huge advantage). That includes rumored and actual financial, economic, political, social and all other information, all of which is reflected in asset prices at any given time.

Those buying this theory believe Milton Friedman knew best. He became the modern-day godfather of "free market" capitalism and leading exponent that markets work efficiently and best when unfettered by government intervention that generally gets things wrong. In 1958, Friedman explained it in his famous "I, Pencil" essay. In it, he illustrated the notion of Adam Smith's invisible hand and conservative economist Friedrich Hayek's teachings on the importance of "dispersed knowledge" and how the price system communicates information to "make (people) do desirable things without anyone having to tell them what to do."

Friedman's "pencil" story explained "a complex combination of miracles: a tree, zinc, copper, graphite, and so on." Added to these ingredients from nature is "an even more extraordinary miracle: the configuration of creative human energies - millions of tiny know-hows configuring naturally and spontaneously (responding to) human necessity and desire and in the absence of any human master-minding." None of them working independently was trying to make a pencil. No one directed them from a central office. They didn't know each other, lived in many countries, spoke different languages, practiced different religions, and may have even hated each other. Yet, their unrelated contributions produced a pencil.

By Friedman's reasoning, this could never happen through central planning. It sounds good in theory, but how does it jibe with reality. The Soviets split the atom, were first in space ahead of the US with Sputnik 1, and developed many advanced technologies even though they were outclassed and outspent by the West overall with greater resources to do it.

In practical reality, governments, like individuals operating freely in the marketplace, can succeed or fail. It comes down to people skills and how well they do their jobs. Top down or bottom up has little final effect on the end result, but does direct what's undertaken and what isn't. Top down in Canada, Western Europe and Venezuela delivers excellent state-funded health care to everyone. Bottom up in America offers it to anyone who can pay, but if not, you're out of luck if your employer won't provide it. Forty-seven million and counting had their luck run out, and Friedman's pencil making miracle won't treat them when they'll ill.

Put another way, if "free market" capitalism works best and America is its lead exponent, why then:

-- is poverty high and rising in the world's richest country;

-- incomes stagnating;

-- higher education becoming unaffordable for the majority;

-- public education crumbling;

-- jobs at all levels disappearing to low-wage countries;

-- the nation's vital infrastructure in a deplorable state;

-- 3.5 million or more homeless and heading higher in the wake of subprime defaults;

-- the standard of living of most in the country declining; and,

-- the nation, in fact, bankrupt according to a 2006 study for the St. Louis Fed.

Clearly, something is wrong with the "pencil miracle" working for some but not for most. Friedman no longer can respond and his acolytes won't.

The Myth that Markets Get It Right and Operate Efficiently

Economist Hyman Minsky was mostly ignored while he lived, but his star may be rising 11 years after his death in 1996. Some described him as a radical Keynesian based on the theories of economist John Maynard Keynes who taught economies operate best when mixed. He believed state and private sectors both play important roles with government stepping in to stimulate or constrain economic activity whenever private sector forces aren't able to do it best alone.

It's the opposite of "supply-side" Reaganomics and its illusory "trickle down" notion that economic growth works best through stimulative tax cuts its proponents claim promote investment that benefits everyone. It was Reagan-baloney then and now, and so is the notion markets are efficient and work best when left alone.

Minsky explained it, and people are now taking note in the wake of current market turbulence. His work showed financial market exuberance often becomes excessive, especially if no regulatory constraints are in place to curb it. He developed his theories in two books - "John Maynard Keynes" and "Stabilizing an Unstable Economy" as well as in numerous articles and essays.

In them, he constructed a "financial instability hypothesis" building on the work of Keynes' "General Theory of Employment, Interest and Money." He provided a framework for distinguishing between stabilizing and destabilizing free market debt structures he summarized as follows:

"Three distinct income-debt relations for economic units....labeled as hedge, speculative and Ponzi finance, can be identified."

-- "Hedge financing units are those which can fulfill all of their contractual payment obligations by their cash flows: the greater the weight of equity financing in the liability structure, the greater the likelihood that the unit is a hedge financing unit."

-- "Speculative finance units are units that can meet their payment commitments on 'income account' on their liabilities, even as they cannot repay the principle out of income cash flows. Such units need to 'roll over' their liabilities - issue new debt to meet commitments on maturing debt."

-- "For Ponzi units, the cash flows from operations are (insufficient)....either (to repay)....principle or interest on outstanding debts by their cash flows from operations. Such units can sell assets or borrow. Borrowing to pay interest....lowers the equity of a unit, even as it increases liabilities and the prior commitment of future incomes."

"....if hedge financing dominates....the economy may....be (in) equilibrium. In contrast, the greater the weight of speculative (and/or) Ponzi finance, the greater the likelihood that the economy is a deviation-amplifying system....(based on) the financial instability hypothesis (and) over periods of prolonged prosperity, the economy transits from financial relations (creating stability) to financial relations (creating) an unstable system."

"....over a protracted period of good times, capitalist economies (trend toward) a large weight (of) units engaged in speculative and Ponzi finance. (If this happens when) an economy is (experiencing inflation and the Federal Reserve tries) to exorcise (it) by monetary constraint....speculative units will become Ponzi (ones) and the net worth of previous Ponzi units will quickly evaporate. Consequently, units with cash flow shortfalls will be forced to (sell out). This is likely to lead to a collapse of asset values."

Minsky developed a seven stage framework showing how this works:

Stage One - Displacement

Disturbances of various kinds change investor perceptions and disrupt markets. It may be a tightened economic policy from higher interest rates or investors and lenders retrenching in reaction to:

-- a housing bubble, credit squeeze, and growing subprime mortgage delinquencies and defaults with spreading contagion affecting:

-- other mortgages, and the toxic waste derivative alchemy of:

-- collateralized debt obligation (CDO) instruments (packages of mostly risky junk and other debt),

--commercial and residential mortgage-backed securities (CMBS and RBMS - asset backed by mortgage principle and interest payments), and even

-- commercial and AAA paper; plus

-- home equity loans harder to service after mortgage reset increases.

Stage Two - Prices start to rise

Following displacement, markets bottom and prices begin rising as fundamentals improve. Investors start noticing as it becomes evident and gains momentum.

Stage Three - Easy credit

Recovery needs help and plentiful easy credit provides it. As conditions improve, it fuels speculation enticing more investors to jump in for financial opportunities or to borrow for a new home or other consumer spending. The easier and more plentiful credit gets, the more willing lenders are to give it including to borrowers with questionable credit ratings. Yale Economist Robert Shiller shares the view that "booms....generate laxity in standards for loans because there a general sense of optimism (like) what we saw in the late 80s" preceding the 1987 crash that doesn't necessarily signal an imminent one now.

New type financial instruments and arrangements also arise as lenders find creative and risky ways to make more money. In recent years, sharply rising housing prices enticed more buyers, and lenders got sloppy and greedy by providing interest-only mortgages to marginal buyers unable to make a down payment.

Stage Four - Overtrading

The cheaper and easier credit is, the greater the incentive to overtrade to cash in. Trading volume rises and shortages emerge. Prices begin accelerating and easy profits are made creating more greed and foolish behavior.

Stage Five - Euphoria

This is the most dangerous phase. Cooler heads are worried but fraudsters prevail claiming this time is different, and markets have a long way to go before topping out. Greed trumps good sense and investors foolishly think they're safe and can get out in time. Stories of easy riches abound, so why miss out. Into the fire they go, often after the easy money was made, and the outcome is predictable. The fraudsters sell at the top to small investors mistakenly buying at the wrong time and getting burned.

Stage Six - Insider profit taking

The pros have seen it before, understand things have gone too far, and quietly sell to the greater fools buying all they can. It's the beginning of the end.

Stage Seven - Revulsion

When cheap credit ends, enough insiders sell, or an unexpected piece of bad news roils markets, it becomes infectious. It can happen quickly turning euphoria into revulsion panicking investors to sell. They begin outnumbering buyers and prices tumble. Downward momentum is far greater and faster than when heading up.

Sound familiar? It's a "Minsky Moment," and the irony is most investors know easy credit, overtrading and euphoria create bubbles that always burst. The internet and tech one did in March, 2000, and since mid-July, reality caught up with excess speculation in equity prices, the housing bubble, growing mortgage delinquencies and subprime defaults. Goldilocks awoke and sought shelter as lenders remembered how to say "no." This time, central banks rode to the rescue (they hope) with huge cash infusions, the Fed cut its discount rate a half point August 17, and it signaled lower "fed funds" rates ahead if markets remain tight.

Intervention may reignite "animal spirits" and work short-term but won't easily band-aid over what noted investor Jeremy Grantham calls "the broadest overpricing of financial assets - equities, real estate, and fixed income - ever recorded" with the financial system dangerously "overstretched (and) overleveraged." His view is that current conditions have "almost never been this dire," and we're "watching a (too late to stop) very slow motion train wreck." Minsky would have noticed, too.

Grantham's exhaustive research shows all markets revert to their mean values, and all bubbles burst as the greatest Fed-engineered equity one ever in US history did in 2000 but didn't complete its corrective work. In Grantham's view, lots more pain is coming and before it's over, it will be mean, nasty and long, affecting everyone. Minsky saw it earlier, studied it, and wrote about it exhaustively when no one noticed. If he were living today, he'd say "I told you so."

Federal Reserve Engineered Housing Bubble and Resultant Financial Market Turmoil

Astute observers continue to speculate and comment that the housing bubble and resultant current financial market turmoil came from deliberate widespread malfeasance aided by considerable cash infusion help from the Federal Reserve in the lead on the scheme.

Economist Paul Krugman is one of the latest with his views expressed in an August 16 New York Times op ed piece titled "Workouts, Not Bailouts." He began by debunking Wall Streeter Treasury Secretary Henry Paulson's ludicrous April claim that the housing market was "at or near the bottom" followed by his equally absurd August view that subprime mortgages were "largely contained." Krugman's response: "the time for denial is past....housing starts and applications for building permits have fallen to their lowest levels in a decade, showing that home construction is still in free fall....home prices are still way too high (at 70% above their long-term trend values according to the Center for Economic and Policy Research, and) the housing slump (will be around) for years, not months" with all those empty unbought homes needing hard to find buyers to fill them.

In addition, mortgage problems are "anything but contained" and aren't confined to the subprime category. Krugman believes current real estate troubles and mortgage fallout bear similarity to the late 1990s stock bubble. Like today, they were accompanied by market manipulation and scandalous fraud at companies like Enron and WorldCom. In his view, "it is becoming increasingly clear that the real-estate bubble of recent years (like the 1990s stock bubble)....caused and was fed by widespread malfeasance." He left out the Fed but named co-conspiratorial players like Moody's Investors Service and other rating agencies getting paid lots of money to claim "dubious mortgage-backed securities to be highest-quality, AAA assets." In this role, they're no different than were "complaisant accountants" like Arthur Andersen that lost its license to practice from its role in the Enron fallout.

In the end, this scandal may be more far-reaching than earlier ones because so many underwriters and other firms are part of the fraud or are seeking to profit from it. At this point, it's hard separating villains from victims as, in some cases, they may be one in the same. They're all involved in dispersing up to trillions of dollars of risks through the derivative alchemy of highly complex, hard to value, packages of mostly subprime CDO and various other type debt instruments that may even end up in so-called safe money market funds unbeknownst to their unsuspecting owners.

Before this scandal ends, they'll be plenty of pain to go around, but as always, small investors and low income subprime and other mortgage homeowners will be hurt most. Krugman says this is "a clear case for government intervention," but it won't be the kind he wants. He cites a "serious market failure (needing fixing to) help (as many as) hundreds of thousands" of Americans who otherwise may lose their homes and/or financial nest eggs. Faced with this problem, "The federal government shouldn't be providing bailouts, (it should) arrange workouts....we've done (it) before (and it worked) - for third-world countries, not for US citizens." It helped both debtors escape default and creditors get back most of their money.

By providing huge cash infusions to ease credit and reignite "animal spirits," the Fed and other central banks showed they aren't listening. It proves what Ralph Nader said in his August 19 Countercurrents article called "Corporate Capitalists: Government Comes To The Rescue" that's also on CounterPunch titled "Greed and Folly on Wall Street." With "corporate capitalists' knees" a bit shaky, Nader recalled what his father once explained years ago when he asked and then told his children: "Why will capitalism always survive? Because socialism will always be used to save it." Put another way, the American business ethic has always been socialism for the rich, and, sink or swim, free market capitalism for the rest of us.

As the housing slump deepens and many tens of thousands of subprime and other mortgage holders default, vulture investors will profit hugely buying troubled assets at a fraction of their value as they always do in troubled economic times. Writer Danny Schechter calls the current subprime credit squeeze debacle a "sub-crime ponzi scheme (in a) highly rigged casino-like market system" targeting unsuspecting victims. Schechter wants a "jailout" for "criminal....financial institutions (posing) as respectable players." Krugman, on the other hand, wants a "workout" for the victims. Neither will get what he wants. In the end, as ordinary people lose out, big government will again rescue "corporate capitalism" (at least in the short-term) the way it always does when it gets in trouble. It's the "American way." It'll be no different this time.

Stephen Lendman lives in Chicago and can be reached in Chicago at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time.

Wednesday, August 22, 2007

America and Venezuela - Constitutional Worlds Apart

America and Venezuela: Constitutional Worlds Apart - by Stephen Lendman

Although imperfect, no country anywhere is closer to a model democracy than Venezuela under President Hugo Rafael Chavez Frias. In contrast, none is a more shameless failure than America, but it was true long before the age of George W. Bush. The difference under his regime is that the mask is off revealing a repressive state masquerading as a democratic republic. This article compares the constitutional laws of each country and how they're implemented. The result shows world's apart differences between these two nominally democratic states - one that's real, impressive and improving and the other that's mostly pretense and under George Bush lawless, corrupted, in tatters, and morally depraved.

US Constitutional Law from the Beginning

Before they're old enough to understand its meaning, young US children are taught to "pledge allegiance to the flag of the United States of America and to the Republic for which it stands," and, by inference, its bedrock supreme constitutional law of the land. At that early age, they likely haven't yet heard of it, but soon will with plenty of misinformation about a document far less glorious than it's made out to be.

This article draws on Ferdinand Lundberg's powerfully important 1980 book, "Cracks in the Constitution," that's every bit as relevant today as then. In it, he deconstructs the nation's foundational legal document, separating myth from reality about what he called "the great totempole of American society." He analyzed it, piece by piece, revealing its intentionally crafted flaws. It's not at all the "Rock of Ages" it's cracked up to be, but students at all levels don't learn that in classrooms from teachers going along with the deception or who simply don't know the truth about their subject matter.

The Constitution falls far short of a "masterpiece of political architecture," but it's even worse than that. It was the product of very ordinary scheming politicians (not the Mt. Rushmore types they're portrayed as in history books) and their friends crafting the law of the land to serve themselves while leaving out the greater public that was nowhere in sight in 1787 Philadelphia. Unlike the Venezuelan Constitution, discussed below, "The People" were never consulted or even considered, and nothing in the end was put to a vote beyond the state legislative bodies that had to ratify it. In contrast to popular myth, the framers crafted a Constitution that didn't constrain or fetter the federal government nor did they create a government of limited powers.

They devised a government of men, not laws, that was composed of self-serving devious officials who lied, connived, used or abused the law at their whim, and pretty much operated ad libitum to discharge their duties as they wished. In that respect, things weren't much different then from now except the times were simpler, the nation smaller, and the ambitions of those in charge much less far-reaching than today.

The Constitution can easily be read in 30 minutes or less and just as easily be misunderstood. The opening Preamble contains its sole myth referring to "We the people of the United States of America." The only people who mattered were white male property owners. All others nowhere entered the picture, then or mostly since, proving democracy operatively is little more than a fantasy. But try explaining that to people today thinking otherwise because that's all they were taught from the beginning to believe.

They were never told the American revolution was nothing more than a minority of the colonists seceding from the British empire planning essentially the same type government repackaged under new management. Using high-minded language in Article I, Section 8 of the supreme law of the land, the founders and their successors ignored the minimum objective all governments are, or should be, entrusted to do - "provide for....(the) general welfare" of their people under a system of constitutional law serving everyone. But that's not its only flaw build in by design.

Our revered document is called "The Living Constitution," and Article VI, Section 2 defines it as the supreme law of the land. In fact, it's loosely structured for governments to do as they wish or not wish with the notion of a "government of the people, by the people, for the people" a nonstarter. "The People" don't govern either directly or through representatives, in spite of commonly held myths. "The People" are governed, like it or not, the way sitting governments choose to do it. As a consequence, "The Living Constitution" was a "huge flop" and still is.

Setting the Record Straight on the Framers

Popular myth aside, the 55 delegates who met in Philadelphia from May to September, 1787 were very ordinary self-serving, privileged, property-owning white men. They weren't extraordinarily learned, profound in their thinking or in any way special. Only 25 attended college (that was pretty rudimentary at the time), and Washington never got beyond the fifth grade.

Lundberg described them as a devious bunch of wheeler-dealers likely meeting in smoke-filled rooms (literally or figuratively) cutting deals the way things work today. He called them no "all-star political team" (except for George Washington) compared to more distinguished figures who weren't there like Jefferson, Adams (the most noted constitutional theorist of his day), John Jay (the first Supreme Court Chief Justice), Thomas Paine, Patrick Henry and others. Madison and Alexander Hamilton, who did attend, were virtual unknowns at the time, yet ever since Madison has been mischaracterized as the Constitution's father. In fact, he only played a modest role.

The delegates came to Philadelphia in May, 1787, assembled, did their work, sent it to the states, and left in a despondent mood. They disliked the final product, some could barely tolerate it, yet 39 of the 55 attendees knowingly signed a document they believed flawed while we today extoll it like it came down from Mt. Sinai. The whole process we call a first-class historical event was, in fact, an entirely routine uninspiring political caucus producing no "prodigies of statecraft, no wonders of political (judgment), no vaulting philosophies, no Promethean vistas." Contradicting everything we've been "indoctrinated from ears to toes" to believe, the notion that the Constitution is "a document of salvation....a magic talisman," or a gift to the common man is pure fantasy.

The central achievement of the convention, and a big one (until the Civil War changed things), was the cobbling together of disparate and squabbling states into a union. It held together, tenuously at best, for over seven decades but not actually until Appomattox "at bayonet point." The convention succeeded in gaining formal approval for what the leading power figures wanted and then got it rammed through the state ratification process to become the law of the land.

After much wheeling and dealing, they achieved mightily but not without considerable effort. Enough states balked to thwart the whole process and had to be won over with concessions like legitimizing slavery for southern interests and more. Then consider the Bill of Rights, why they were added, for whom, and why adopting them made the difference. It came down to no Bill of Rights, no Constitution, but they weren't for "The People" who were out of sight and mind.

These "glorified" first 10 Amendments were first rejected twice, then only added to assure enough state delegates voted to ratify the final document with them included. Many in smaller states were displeased enough to want a second convention that might have derailed the whole process had it happened. To prevent it, concessions were made including adding the Bill of Rights because they addressed key state delegate concerns like the following:

-- prohibitions against quartering troops in their property,

-- unreasonable searches and seizures there as well,

-- the right to have state militias,

-- the right of people to bear arms, but not as the 2nd Amendment today is interpreted,

-- the rights of free speech, the press, religion, assembly and petition, all to serve monied and propertied interests alone - not "The People,"

-- due process of law with speedy public trials for the privileged, and

-- various other provisions worked out through compromise to become our acclaimed Bill of Rights. Two additional amendments were proposed but rejected by the majority. They would have banned monopolies and standing armies, matters of great future import that might have made a huge difference thereafter. We'll never know for sure.

In the end and in spite of its defects, the framers felt it was the best they could do at the time and kept their fingers crossed it would work to their advantage. None of them suggested or wanted "a sheltered haven....for the innumerable heavily laden, bedraggled, scrofulous and oppressed of the earth." On the contrary, they intended to keep them that way meaning things weren't much different then than now, and the founders weren't the noble characters they're made out to be.

There were no populists or civil libertarians among them with men like Washington and Jefferson (who was abroad and didn't attend) being slave-owners. In fact, they were little more than crass opportunists who willfully acted against the will of "The People" they ignored and disdained. In spite of it, they're practically deified and ranked with the Apostles, and one of them (Washington) sits in the most prominent spot atop Mt. Rushmore.

The constitutional convention ended September 17, 1787 "in an atmosphere verging on glumness." Of the 55 attending delegates, 39 signed as a pro forma exercise before sending it to the states with power to accept or reject it. Again, "The People" were nowhere in sight in Philadelphia or at the state level where the real tussle began before the founders could declare victory.

What Was Achieved and What Wasn't

Contrary to popular myth, the new government wasn't constrained by constitutional checks and balances of the three branches created within it. In fact, then and since, sitting governments have acted expediently, with or without popular approval, and within or outside the law. In this respect, our system functions no differently than most others operating as we do. It's accomplished through "the narrowest possible interpretations of the Constitution," but it's free to go "further afield under broader or fanciful official interpretations." History records many examples under noted Presidents like Lincoln, T. and F. Roosevelt and Wilson along with less distinguished ones like Reagan, Clinton, Nixon, GHW Bush and his bad seed son, the worst ever of a bad lot.

Key to understanding the American system is that "government is completely autonomous, detached, (and) in a realm of its own" with its "main interest (being) economic (for the privileged) at all times." Constitutional shackles and constraining barriers are pure fantasy. Regardless of law, custom or anything else, sitting US governments have always been freelancing and able to operate as they please. They've also consistently been unresponsive to the public interest, uncaring and disinterested in the will and needs of the majority, and generally able to get around or remake the law to suit their purpose. George W. Bush is only the latest and most extreme example of a tradition begun under Washington, who when elected unanimously (by virtual coronation) was one of the two richest men in the country.

The Legislative Branch

The Constitution then and since confers unlimited powers on the government constituted under its three branches of the Congress, Executive and Judiciary. Article I (with seven in all plus 27 Amendments) deals with the legislative branch. Section 8, Sub-section 18 states Congress has power "to make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution....or in any department or officer thereof." It's for government then to decide what's "necessary" and "proper" meaning the sky's the limit under the concept of sovereignty.

The Executive and Judiciary branches are dealt with below with the three branches comprising a labyrinthine system the framers devised under the Roman notion of "divide and rule" as follows:

-- a powerful (and at times omnipotent) chief executive at the top,

-- a bicameral legislature with a single member in the upper chamber able to subvert all others in it through the power of the filibuster (meaning pirate in Spanish),

-- a committee system controlled mostly by seniority or a political powerbroker,

-- delay and circumlocution deliberately built into the system,

-- a separate judiciary able to overrule the Congress and Executive, but too often is a partner, not an adversary,

-- staggered elections to assure continuity by preventing too many officials being voted out together,

-- a two-party system with multiple constituencies, especially vulnerable to corruption and the influence of big (corporate) money that runs everything today making the whole system farcical, dishonest and a democracy only in the minds of the deceived and delusional.

The Judiciary

Article III of the Constitution establishes the Supreme Court saying only: "The judicial power shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish." Congress is explicitly empowered to regulate the Court, but, in fact, the opposite often happens or, at times, it cuts both ways. The function of Congress is to make laws with the Court in place to interpret them and decide their constitutionality if challenged and it decides to adjudicate.

As for the common notion of "judicial review," it's nowhere mentioned in the Constitution nor did the framers authorize it. Nonetheless, courts use it to judge the constitutionality of laws in place and public sector body actions. They derive their power to do it by deduction from two separate parts of the Constitution: Article VI, Section 2 saying the Constitution, laws and treaties are the supreme law of the land and judges are bound by them; then in Article III, Section 1 saying judicial power applies to all cases, implying judicial review is allowed. Under this interpretation of the law, appointed judges, in theory, "have a power unprecedented in history - to annul acts of the Congress and President."

With or without this power, Lundberg makes a powerful case overall that the constitutional story comes down to a question of money and money arrangement - who gets it, how, why, when, where, what for, and under what conditions. Also addressed is who the law leaves out. The story has nothing whatever to do with guaranteeing life, liberty, and the pursuit of happiness (Jefferson's Orwellian language meaning property); establishing justice; upholding the rule of law equitably for everyone; promoting the general welfare; or securing the blessings of freedom for "The People" unconsidered, unimportant and ignored by the three branches of government serving monied and property interests only, of which they are a part.

The Executive Branch

Lundberg's theme is clear and unequivocal. Under US constitutional law, the President is the most powerful political official on earth, bar none under any other system of government. "The office he holds is inherently imperial," regardless of the occupant or how he governs, and the Constitution confers this on him. Unlike the British model, with the executive as a collectivity, the US system "is absolutely unique, and dangerously vulnerable" with one man in charge fully able to exploit his position. "The American President (stands) midway between a collective executive and an absolute dictator (and in times of war like now) becomes, in fact, quite constitutionally, a full-fledged dictator." Disturbingly, the public hasn't a clue about what's going on.

A single sentence, easily passed over or misunderstood, constitutes the essence of presidential power. It effectively grants the Executive a near-limitless source, only constrained to the degree he chooses. It's from Article II, Section 1 reading: "The executive power shall be vested in a President of the United States of America. Article II, Section 3 then almost nonchalantly adds: "The President shall take care that the laws be faithfully executed" without saying Presidents are virtually empowered to make laws as well as execute them even though nothing in the Constitution specifically permits this practice. More on that below.

To understand how the US government works, it's essential to know what executive power is, in fact, knowing it's concentrated in the hands of one man for good or ill. Also crucial is how Presidents are elected - "literally (by) electoral (unelected by the public) dummies" in an Electoral College. The scheme is a long-acknowledged constitutional anomaly as these state bodies are able to subvert the popular vote, never meet or consult like the College of Cardinals electing a Pope, and, in effect, reduce and corrupt the process into a shameless farce.

Once elected, it only gets worse because the power of the presidency is awesome and frightening. The nation's chief executive:

-- is commander-in-chief of the military functioning as a virtual dictator in times of war; although Article I, Section 8 grants only Congress that right, the President, in fact, can do it any time he wishes "without consulting anyone" and, of course, has done it many times;

-- can grant commutations or pardons except in cases of impeachment;

-- can make treaties that become the law of the land, with the advice and consent of two-thirds of the Senate (not ratification as commonly believed); can also terminate treaties with a mere announcement as George Bush did renouncing the important ABM Treaty with the former Soviet Union; in addition, and with no constitutional sanction, he can rule by decree through executive agreements with foreign governments that in some cases are momentous ones like those made at Yalta and Potsdam near the end of WW II. While short of treaties, they then become the law of the land.

-- can appoint administration officials, diplomats, federal judges with Senate approval, that's usually routine, or can fill any vacancy through (Senate) recess appointments; can also discharge any appointed executive official other than judges and statutory administrative officials;

-- can veto congressional legislation, and history shows through the book's publication they're sustained 96% of the time;

-- while Congress alone has appropriating authority, only the President has the power to release funds for spending by the executive branch or not release them;

-- Presidents also have a huge bureaucracy at their disposal, including powerful officials like the Secretaries of Defense, State, Treasury, and Homeland Security and the Attorney General in charge of the Justice Department;

-- Presidents also command center stage any time they wish. They can request and get national prime time television for any purpose with guaranteed extensive post-appearance coverage promoting his message with nary a disagreement with it on any issue;

-- throughout history, going back to George Washington, Presidents have issued Executive Orders (EOs) although the Constitution "nowhere implicitly or explicitly gives a President (the) power (to make) new law" by issuing "one-man, often far-reaching" EOs. However, Presidents have so much power they can do as they wish, only constrained by their own discretion.

-- George Bush also usurped "Unitary Executive" power to brazenly and openly declare what this section highlights - that the law is what he says it is. He proved it in six and a half years of subverting congressional legislation through a record-breaking number of unconstitutional "signing statements." - They rewrote over 1132 law provisions through 147 separate "statements," more than all previous Presidents combined. Through this practice, George Bush expanded presidential power well beyond the usual practices recounted above.

-- Presidents are, in fact, empowered to do almost anything not expressively forbidden in the Constitution, and very little is; more importantly, with a little ingenuity and lots of creative chutzpah, the President "can make almost any (constitutional) text mean whatever (he) wants it to mean" so, in fact, his authority is practically absolute or plenary. And the Supreme Court supports this notion as an "inherent power of sovereignty." If the US has sovereignty, it has all powers therein, and the President, as the sole executive, can exercise them freely without constitutional authorization or restraint.

In effect, "the President....is virtually a sovereign in his own person." Compared to the power of the President, Congress is mostly "a paper tiger, easily soothed or repulsed." The courts, as well, can be gotten around with a little creative exercise of presidential power, and in the case of George Bush, at times just ignoring their decisions when they disagree with his. As Lundberg put it: "One should never under-estimate the power of the President....nor over-estimate that of the Supreme Court. The supposed system of equitable checks and balances does not exist, in fact, (because Congress and the courts don't effectively use their constitutional authority)....the separation in the Constitution between legislative and the executive is wholly artificial."

Further, it's pure myth that the government is constrained by limited powers. Quite the opposite is true "which at the point of execution (resides in) one man," the President. In addition, "Until the American electorate creates effective political parties (which it never has done), Congress....will always be pretty much under (Presidents') thumb(s)." Under the "American constitutional system (the President) is very much a de facto king," and under George Bush a corrupted, devious, criminal and dangerous one.

As for impeaching and convicting a President for malfeasance, Article II, Section 4 states it can only be for "treason, bribery, or other high crimes and misdemeanors." Based on the historical record, it's near-impossible to do with no President ever having been removed from office this way, and only two were impeached, both unjustly. John Adams, the most distinguished constitutional theorist of his day, said it would take a national convulsion to remove a President by impeachment, which is not to say it won't ever happen and very likely one day will with no time better than the present to prove it.

In sum from the above, the US system of constitutional law is full of flaws and faults. "The People" were deliberately and willfully left out of the process proving the Constitution doesn't recognize democracy in America in spite of the commonly held view it does. In addition, the President, at his own discretion, can usurp dictatorial powers and end republican government by a stroke of his pen. That should awaken everyone to the clear and present danger that any time, for any reason, the President of the United States can declare a state of emergency, suspend the law of the land and rule by decree.

Constitutional Government in Venezuela

How does America's system of government contrast with rule under the 1999 Constitution of the Bolivarian Republic of Venezuela? Hugo Chavez was first elected president in December, 1998 and took office in February, 1999. He then held a national referendum so his people could decide whether to convene a National Constituent Assembly to draft a new constitution to embody his visionary agenda. It passed overwhelmingly followed three months later by elections to the National Assembly to which members of Chavez's MVR party and those allied with it won 95% of the seats. They then drafted the revolutionary Constitucion de la Republica Bolivariana de Venezuela. It was put to a nationwide vote in December, 1999 and overwhelmingly approved changing everything for the Venezuelan people.

It established a model humanistic participatory social democracy, unimaginable in the US, providing real (not imagined) checks and balances in the nation's five branches of government. They comprise the executive, legislative and judicial ones plus two others. One is the independent national electoral council that regulates and handles state and civil society organization electoral procedures to assure they conform to the law requiring free, fair and open elections. The other is a citizen or public power branch functioning as a unique institution. It lets ordinary people serve as ombudsmen to assure the other government branches comply with constitutionally-mandated requirements. This branch includes the attorney general, the defender of the people, and the comptroller general.

The Legislative Branch

Venezuela is governed under a unicameral legislative system called the National Assembly. It's composed of 167 members (compared to 535 in the two US Houses) elected to serve for five years and allowed to run two more times. It differs from the bicameral system in the US but is broadly similar to governments like in the UK. Although it's bicameral, it's governed solely by publicly elected members of the House of Commons that includes the Prime Minister and his cabinet as members of Parliament. The upper House of Lords is merely token and advisory, there by tradition like the Queen, with no power to overrule the lower House that runs everything.

The Office of the President

The President is elected with a plurality of universally guaranteed suffrage. Article 56 of the Bolivarian Constitution states: "All persons have the right to be registered free of charge with the Civil Registry Office after birth, and to obtain public documents constituting evidence of the biological identity, in accordance with law." In addition, all Venezuelans are enfranchised to vote under one national standard and are encouraged to do it under a model democratic system with the vast majority in it actively participating.

In contrast, the US system is quite different. Precise voting rights qualifications are for the states to decide with no constitutionally mandated suffrage standard applying across the board for everyone. The result is many US citizens are denied their franchise right. They're unable to participate in the electoral process for a variety of reasons no democratic state should tolerate, but America built it into the system by design.

The Judicial System

Under Article 2 in The Bolivarian Constitution, the judicial system shares equal importance to the law of the land. But it wasn't always that way earlier when the Venezuelan judiciary had an odious reputation before Chavez was elected. It had a long history of corruption, a disturbing record of being beholden to political benefactors, and a tradition of failing to provide an adequate system of justice for most Venezuelans. Chavez vowed to change things and undertook a major restructuring effort after taking office. He put this government branch under the Supreme Tribunal of Justice and made it independent of the others. The law now requires those serving be elected by a two-thirds legislative majority (not the previous simple one), and tighter requirements are in place regarding eligible candidates along with public hearings to vet them.

In addition, to root out long-standing corrupt practices, Chavez created a Judicial Restructuring Commission to review existing judgeships and replace those not fit to serve. Henceforth, all sitting judges with eight or more corruption charges pending are disqualified. It effectively eliminated 80% of those on the bench in short order and showed the extent of malfeasance in the national judicial culture. It also suggested the huge amount throughout the government from generations of institutionalized privilege. Those in power were licensed to steal the country blind and enrich themselves and foreign investors at the expense of the vast majority.

Reform in all areas of government is still a work in progress, including in the judiciary needing much of it. The process hasn't been perfect because of the enormity of the task. By the end of 2000, about 70% of sitting judges in the so-called capital region of Caracas, Miranda and Vargas states were replaced by provisional ones with charges of old judges removed for equally beholden new ones. It may be true and points to how hard the going is to change the long-standing culture of privilege and institute real democratic reforms throughout the government.

Nonetheless, the Constitution established Chavez's vision for a foundation and legal framework for revolutionary structural change. He's been working since to transform the nation incrementally into a model participatory social democracy serving all Venezuelans instead of for the privileged few alone the way it traditionally was in the past and how US framers designed American constitutional law. The differences between the two nations couldn't be more stark.

The spirit of the Venezuelan Bolivarian Constitution is stated straightaway in its Preamble:...."to establish a democratic, participatory and self-reliant, multiethnic and multicultural society in a just, federal and decentralized State that embodies the values of freedom, independence, peace, solidarity, the common good, the nation's territorial integrity, comity and the rule of law for this and future generations;"

It further "guarantees the right to life, work, learning, education, social justice and equality, without discrimination or subordination of any kind; promotes peaceful cooperation among nations and further strengthens Latin American integration in accordance with the principle of nonintervention and national self-determination of the people, the universal and indivisible guarantee of human rights, the democratization of imitational society, nuclear disarmament, ecological balance and environmental resources as the common and inalienable heritage of humanity;......"

This language would be unimaginable in the US Constitution, and, unlike our federal law, they're more than words. This is Hugo Chavez's commitment to all Venezuelans ordained under nine Title headings, 350 Articles, and 18 Temporary Provisions. It's a first class democratic document, little known in the West, that greatly outclasses and shames what US framers' enacted for themselves and privileged friends alone. Democracy was nowhere in sight then nor has it shown up since. In Venezuela under Hugo Chavez, it's resplendent, glorious, still imperfect and a work in progress, but heading in the right direction with newly proposed changes discussed below.

The contrast with America today couldn't be greater. The nation under George Bush is ruled by Patriot and Military Commissions Act justice under an institutionalized imperial system of militarized savage capitalism empowering the rich to exploit all others. A state of permanent war exists; civil liberties are disappearing and human rights are a nonstarter; dissent is a crime; social decay is growing; a culture of secrecy and growing fear prevail; torture is practically sanctified; injustice is tolerated; the dominant media function as virtual national thought-control police gatekeepers; and the law is what a boy-emperor president says it is. Aside from the privileged it serves, democracy in America is only in the minds of the bewildered and last of the true-believers who sooner or later will discover the truth.

Consider Venezuela's Bolivarian spirit in contrast. The people freely and openly choose their leaders in honest, independently monitored elections. They're unemcumbered by a farcical electoral college voting scheme (for Presidents) and a system of rigged electronic voting machine and other electoral engineered fraud corrupting the entire process sub rosa. They also have unimaginable benefits like free quality health and dental care (mandated in Articles 83 - 85) as a "fundamental social right and....responsibility of the state....to guarantee....to improve the quality of life and common welfare." It's administered through a national public health system proscribed from being privatized. That's how health delivery in America gets corrupted for profit. The result is 47 million and counting are uninsured, many millions more have too little coverage, and the cost of care is unaffordable for all but the well-off or those on Medicare, Medicaid (if qualify) or under disappearing company-paid plans.

The Constitution also enacted the principle of participatory democracy from the grassroots for everyone. It's mandated in Articles 166 and 192 establishing citizen assemblies as a constitutional right for ordinary people to be empowered to participate in governing along with their elected officials. Constitutionally guaranteed rights also ban discrimination; promote gender equity; and insure free speech; a free press; free, fair, and open elections; equal rights for indigenous people (assured a minimum three National Assembly legislative seats); and mandates government make quality free education available for all to the highest levels, as well as housing and an improved social security pension system for seniors, and much more.

Hugo Chavez brought permanent change, and most Venezuelans won't tolerate returning to the ugly past. Why should they? They never got these essential social services before. Under a leader who cares, they do now, and their lives improved enormously.

Other Venezuelan Constitutionally Guaranteed Rights

The Bolivarian Constitution is a glorious document, fundamentally different in spirit and letter from its US counterpart it shames by comparison. Before Chavez took office in February, 1999, Venezuela only paid lip service to civil liberties, human rights and needs. They're now mandated by law. It encompasses an impressive array of basic rights and essential services like government-paid health care, education, housing, employment and human dignity enforced and funded by a caring government as the law requires.

Article 58 in the Constitution also guarantees the right to "timely, true, and impartial" information "without censorship, in accordance with the principles of this constitution." The opposite is true in America where major media are state propaganda instruments for the privileged.

Articles 71 - 74 establish four types of popular national referenda never imagined or held in America outside the local or state level where they're often non-binding. The US is one of only five major democracies never to have permitted this type citizen participation. In Venezuela under Hugo Chavez, the practice is mandated by law and institutionalized to give people at the grass roots a say in running their government. Four types of referenda are allowed:

--consultative - for a popular, non-binding vote on "national transcendent" issues like trade agreements;

-- recall - applied to all elected officials up to the President;

-- approving - a binding vote to approve laws, constitutional amendments, and treaties relating to national sovereignty; and

-- rescinding - to rescind or change existing laws.

Referenda can be initiated by the National Assembly, the President, or by petition from 10 - 20% of registered voters, with different procedural requirements applying for each.

Social, family, cultural, educational and economic rights are guaranteed under Chapters V - VII with the government backing them financially.

Indigenous Native Peoples' rights are covered in Chapter VIII. Even environmental rights are addressed with Article 127 stating "It is the right and duty of each generation to protect and maintain the environment for its own benefit and that of the world of the future....The State shall protect the environment, biological and genetic diversity, ecological processes....and other areas of ecological importance." Try imagining any US federal law with teeth containing this type language let alone the Constitution that includes nothing in its Articles or Amendments.

Citizen Power gets considerable attention under Articles 273 - 291. It's exercised by "the Republican Ethics Council, consisting of the People Defender, the General Prosecutor and the General Comptroller of the Republic....Citizen Power is independent and its organs enjoy operating, financial and administrative autonomy." Citizen Power organs are legally charged with "preventing, investigating and punishing actions that undermine public ethics and administrative morals, to assure lawful sound management of public property....(to help) create citizenship, together with solidarity, freedom, democracy, social responsibility, work" and more.

Venezuela's Constitution covers much more as well under each of its nine Titles from:

-- stating its fundamental Bolivarian principles in Title I, to

-- National Security in Title VII,

-- Protection of the Constitution in Title VIII to assure its continuity in the event of "acts of force" or unlawful repeal with each citizen having a duty to reinstate it if that need arises; and finally

-- Constitutional Reforms in Title IX in the form of amendments, other reforms to revise or replace any of its provisions, and the National Constituent Assembly with power "resting with the people of Venezuela." They're empowered to call an Assembly to transform the State, create a new "juridical order" and draft a new Constitution to be submitted to a national referendum for the people to accept or reject. That's how democracy is supposed to work. In Venezuela it does. In the US, it doesn't, never did, and was never conceived or intended to from the nation's founding to the present.

This happens because Americans know painfully little about their law of the land hidden from them in plain view. They're taught misinformation about it and the framers who drafted it. Few ever read it beyond a quoted line or two and even fewer ever think about it. In contrast, in Venezuela, the Bolivarian Constitution is sold in pocket-sized form almost everywhere. People buy, read and study it. Why? Because it's a vital unifying part of their lives codifying core democratic values and principles Venezuelan people cherish and wish to keep.

Prospective Venezuelan Constitutional Reforms

In July, President Chavez announced he'd be sending the National Assembly a proposal of suggested constitutional reforms to debate and consider. He stressed Venezuelans would then get to vote on them in a national referendum so that "the majority will decide if they approve....constitutional reform."

Chavez submitted his proposal in an August 15 address to the National Assembly that will debate and rule on them in three extraordinary sessions over the next 60 to 90 days. Included are amendments to 33 of the Constitution's 350 articles to "complete the death of the old, hegemonic oligarchy and the old, exploitative capitalist system, and complete the birth of the new state." Chavez stressed the need to update the 1999 Constitution because it's "ambiguous (and) a product of that moment. The world (today) is very different from (then). (Reforms now are) essential for continuing the process of revolutionary transition." They include:

-- extending presidential terms from six to seven years;

-- unlimited reelections (that countries like England, France, Germany and others now allow); Chavez wants the reelection option to be "the sovereign decision of the constituent people of Venezuela;"

-- guaranteeing the right to work and establishing policies to develop and generate productive employment;

-- creation of a Social Stability Fund for "non-dependent" or self-employed workers so they have the same rights as other workers including pensions, paid vacations and prenatal and postnatal leave entitlements;

-- reducing the workday to six hours so businesses would have to employ more workers and hold unemployment down;

-- ending the autonomy of Venezuela's Central Bank;

-- recognition of different kinds of property defined as social, collective, mixed and private;

-- redefining the role of the military so henceforth "The Bolivarian Armed Forces (will) constitute an essential patriotic, popular and anti-imperialist body organized by the state to guarantee the independence and sovereignty of the nation...;" and

-- guaranteeing state control over the nation's oil industry to prevent any future privatization of this vital resource;

Chavez also wants other changes to strengthen the nation's participatory democracy at the grassroots. He stresses "one of the central ideas is my proposal to open, at the constitutional level, the roads to accelerate the transfer of power to the people" in an "Explosion of Communal (or popular) Power." It's already there in more than 26,000 democratically functioning grassroots communal councils. They're government-sanctioned, funded, operating throughout the country, and may double in number and be strengthened further under proposed constitutional changes.

Chavez wants "Popular (people) Power" to be a "State Power" along with the Legislature, Executive, Judicial, Citizen and Electoral ones and considers this constitutional change the most important one of all. If it happens, various sovereign powers and duties now handled at the federal, state and municipal levels will be transfered to local communal, worker, campesino, student and other councils. This will strengthen Venezuela's bedrock participatory democracy making it even more unique and impressive than it already is.

In America, it's unimaginable a President or other government officials would recommend "People Power" become our fourth government branch, co-equal with the others, with citizens empowered to vote in national referenda on crucial proposed changes in law.

Chavez also proposed a "new geometry of power" by amending article 16 that now states "the territory of the nation is divided into those of the States, the Capital District, federal dependencies and federal territories. The territory is organized into Municipalities." Chavez wants this amended so popular referenda can create "federal districts" in specific areas to serve as states. He called this idea "profoundly revolutionary (and needed) to remove the old oligarchic, exploiter hegemony, the old society, and (quoting Gramsci weaken the former) historic block. If we don't change the (old) superstructure (it) will defeat us."

Chavez also stressed this new structure is needed to be in place when "Venezuela (grows to) 40 - 50 million people." His plan includes "restructur(ing) Caracas" into a Federal District with more local autonomy, as it was at an earlier time.

These proposals and other initiatives are part of his overall socialism for the 21st century plan that's also very business-friendly. Chavez opposes savage capitalism, not private enterprise, and under his stewardship domestic and foreign businesses have thrived. They're a dominant force powering the economy to accelerated growth since 2003 with latest Central Bank 2nd quarter, 2007 figures coming in at 8.9%. With oil prices high and world economies prospering, this trend is likely to continue. That's good news for business and households sharing in the benefits through greater purchasing power.

Chavez wants his new United Socialist Party (PSUV) to drive the revolutionary process and continue his agenda of reform for all Venezuelans. He wants everyone to enjoy the benefits, not just a privileged few like in the past and in the US today. Under his leadership, their future is bright while in America poverty is growing, the middle class is dying, and the darkness of tyranny threatens everyone under George Bush with his agenda likely continuing under a new president in 2009.

Governance differences exist between these two nations because their constitutional laws are mirror opposite, and America has no one like Hugo Chavez. He's a rare leader who cares and backs his rhetoric with progressive people-friendly policies. In the US, there's George Bush, and that pretty much explains the problem. Knowing that, which leader would you choose and under which system of government would you prefer to live?

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time.

Monday, August 20, 2007

Iraq Progress Report: A Time to Assess and Reflect

Iraq Progress Report: A Time to Assess and Reflect - by Stephen Lendman

The Bush administration is required to submit three progress reports on Iraq to Congress in September after it returns from its August recess. The US Comptroller General will issue one around September 1 on how well so-called congressional benchmarks have been met. Near the end of the month, the Center for Strategic and International Studies (CSIS) conservative think tank will report on "The readiness of the Iraqi Security Forces (ISF) to assume responsibility for maintaining the territorial integrity of Iraq, denying international terrorists a safe haven, bringing greater security to Iraq's 18 provinces in the next 12 to 18 months, and bringing an end to sectarian violence to achieve national reconciliation."

Then, on or about September 15, General David Petraeus, US "Multi-National Force" - Iraq (MNF-I) commander will submit his assessment of progress before multi-billions more funding are released for a war the Pentagon and most others in Washington know is unwinnable and lost. No matter, his report (and the others) will state progress has been made and the "surge" is working even though details will be sketchy in what's expected to be a vaguely worded deceptive snapshot of contrived positive trends. It'll fool no one, but Congress will be asked to accept it (and the others) on faith that more time, money, sustained troop levels and patience are needed.

That's assured from friendly Democrats and Republicans alike. They continue turning a blind eye to the daily nationwide out-of-control carnage like the August 14 Kurdish area truck bombings local Nineveh province officials report killed at least 500 (far above initial reports), seriously wounded hundreds more, and destroyed over 30 homes in the northwest Yazidi communities.

No matter, and who in Washington is watching and counting. The generalissimo's wishes are all that matter, and he'll have a list of them prepared for him by his bosses and handlers in "the White House, with inputs from officials throughout the government,"according to an August 15 report in the Los Angeles Times. All Petraeus has to do is transcribe them to his letterhead, sign them, and return them to Washington in the enclosed stamp-addressed envelope.

The generalissimo knows what's expected of him which is why he was picked for the top Iraq job. He's also an image-maker's creation portrayed by the White House and dominant media as aggressive in nature, an innovative thinker on counterinsurgency warfare, a talisman, a white knight, a do-or-die competitive legend, and a man able to turn defeat into victory. Those of us old enough don't remember adulation that strong for Eisenhower or MacArthur. Nor did we read about it for John Pershing in the earlier war or for George Washington either, for that matter. As for heaping it on Petraeus, borrowing a quote from a past article - "Phew."

The generalissimo has now been in Iraq six months, and despite claims of progress, conditions are worse than ever and heading south under his stewardship. Still, the commander's hope springs eternal and won't likely wane (at least publicly) lest he risk another 4-star aspirant stepping in to replace him. With upper lip stiffened and reciting his prepared lines, he tells a New York Times reporter "we're going to try (to) win (this war, but)....it's likely to muddle along for quite a long time."

The boy emperor "commander-in-chief" back home has his ideas, too. He plans to continue the "surge" well into next year, all the while claiming "our new strategy is delivering good results, and our commanders recently reported more good news." Army Chief of Staff George Casey (who got bumped in February for Petraeus) was part of the amen chorus August 14 after a weekend visit to Iraq. "Our guys are seeing progress on the security front," he claimed. "From the time I was there, there was progress....every day....and there continues to be progress....We will succeed....if we demonstrate patience and will." More hype still came from an August 10 White House document citing positive reports from "several unexpected (unidentified) sources" and a recent uptick in polling numbers any able pollster can produce.

It's all part of a careful Washington-scripted scheme to band-aid-over an unfixable gaping wound. It includes dispatching hordes of congressmen, senators, friendly journalists and assorted think tank types to a series of staged events and meetings in Iraq, far removed from what's, in fact, happening on the ground. Their mission is to get it all down and tell it to the home folks on return, and that's what's happening.

Some of it comes from two on-off-and on again war-supporting flacks, Michael O'Hanlon and Kenneth Pollack. It was in their New York Times July 30 op ed piece titled "A War We Just Might Win." Neither one is credible, and that status earned them prominent space in "the newspaper of record" to pile on more hype for a failed and illegal enterprise.

Both men supported (illegally) attacking Iraq in the run-up to war when a quick victory looked easy. When it failed, they became harsh critics of administration bumbling until now. After being whisked to Iraq as part of the thinly veiled PR scheme, they returned after eight days of dog and pony show theater claiming the following: "the political debate in Washington is surreal (with its) critics unaware of....significant changes taking place (in Iraq.) We are finally (making progress), at least in military terms....In previous trips....American troops were angry and frustrated....Today, morale is high....they see real results." This over-the-top assessment stopped just short of claiming the troops are so elated they can't wait to come back for another tour when their current one ends.

After four and a half years of failure in a war longer in duration than WW I or II, and likely to exceed the latter one in inflation-adjusted cost before it ends, it's hard believing Congress would swallow any assessment ignoring reality. But you can bet it will on both sides of the aisle even though the generalissimo says success depends on a long-term US presence likely to be at least "9 or 10 years." In plain English, that means permanent occupation and turning a blind eye to defeat until the pain gets so great we give it up and leave.

That's not imminent as the administration-friendly horde descended on Iraq for an advance taste of what's coming next month straight from the generalissimo's mouth. They heard progress is slow but being made in places like Al Anbar province where Sunni tribal leaders have been armed and enlisted to help in an act of desperation likely to backfire. These same men are former and almost certain future resistance fighters. They turned against fellow Iraqis (called Al Queda as standard hot button Pavlovian scare talk) because their views and actions got too extreme. That will change when American duplicity again is seen as the main threat. At that point, these same tribal leaders will rejoin the fight to liberate their country from a hostile occupier they and other Iraqi fighters won't tolerate.

The present detente will prove short-lived when they become as disillusioned as the main Sunni Accordance Front 44 seat bloc that left the Shia-dominated power-sharing government August 1 because their demands were ignored. A week later, five more ministers joined them by announcing a boycott of cabinet meetings. There's now no Sunni representation in the al-Makiki government causing fissures in it big enough to drive an M1A1 tank through, and all the Pentagon and Bush administration can do is blame it on Iranian meddling and al-Maliki's inability to contain it. It makes as much sense as a 1960s pop song blaming a magic spell of love on the bossa nova, but that Latin beat hasn't been cited yet for any of Iraq's problems.

In a sign of desperation, al-Maliki assembled top Iraqi political leaders August 13 to prepare for an August 14 summit of sorts to end the current crisis and restore unity. "Everything (he said would) be on the table," to resolve the impasse that may be unresolvable. Major contentious issues remain, and one of the biggest is Big Oil's drafted grand theft oil law unacceptable to most Iraqis and still to be legislatively settled one way or another. Nothing permanent will be settled, however, until a real Iraqi government is in place after the occupation ends, and the puppet one is gone. How pathetic it is showed when the "crisis summit" met. Like previous efforts, it produced nothing, and the largest Sunni bloc leader, Adnan Dulaimi, said there were no negotiations, nothing political was discussed, but it was a nice lunch.

It's more evidence claims of progress are pure fantasy, and despite the hype, the so-called "surge" is a bust. All that's "surging" is the number of:

-- daily attacks played down in the major media;

-- deaths that a Just Foreign Policy report calculates at over 1 million since March, 2003 based on updating an earlier Lancet study estimating 655,000 or more deaths through July, 2006;

-- uncontrollable violence throughout the country;

-- refugees fleeing for safety; the International Rescue Committee and UNHCR estimate the number at around four million including the internally displaced with a further 40,000 Iraqis fleeing their homes each month; and

-- a near-total breakdown of essential services like electricity, drinking water, sanitation, medical care, education, security and even food compounded by mass unemployment and extreme poverty; the result is a crisis level humanitarian disaster of epic proportions that continues to worsen.

A July 30, 2007 Oxfam International and NCCI network of aid organizations report had grim findings. It estimates:

-- eight million Iraqis need emergency aid - one-third of the population;

-- four million can't buy enough to eat;

-- 70% of Iraqis have no adequate water supply;

-- 80% lack adequate sanitation;

-- 28% of children are malnourished;

-- the rate of underweight baby births has tripled;

-- 92% of Iraqi children suffer learning problems due to fear; and

-- there's been a mass exodus of around 80% of doctors, nurses, teaching staff at schools and hospitals and other vitally needed professionals.

This writer observed back in February and earlier that conditions would continue to deteriorate, and the greater number of US forces there are on the ground, the worse things will get. That's the current situation, but it's not being reported. Nor do we hear about Joint Chiefs of Staff Admiral Michael G. Mullen's end of July assessment that "no amount of troops in no amount of time will make much of a difference," agreeing with other military analysts with similar views going back decades.

Instead, spin begets super-spin in an effort to keep defeat from becoming Armageddon or at least dampen or conceal it until a new President takes office and then it's his or her problem to sort out and explain. So far, it doesn't look promising according to accurate reports, some of which are Department of Defense (DOD) ones hushed up.

DOD notes the average number of daily attacks peaked in June at a level higher than any month since May, 2003, right after the invasion. Other independent reports note Baghdad is an out-of-control battle zone looking hopeless, conditions are nearly as bad in other parts of the country, and dead bodies are everywhere in numbers too great to keep accurate count. Morgues can't handle the volume and don't even try. To conceal the true toll, journalists aren't allowed at bombing site scenes and are kept out of hospitals and wherever else they can document carnage. The Bush administration calls it progress, and the hyperventilating media play along with people denied the truth unless they rely on unembedded independent journalists as growing numbers are doing.

Few parts of the country have escaped turmoil that's even in the Kurdish North as the August 14 bombings there proved. It's also hitting the British-occupied South around Basra that was never spared violence but once got much less than in American-controlled areas. Now it's pretty intense forcing the Brown government to consider heeding the recommendation of its senior military commanders that "nothing more can be accomplished" in Iraq and the remaining 5500 British troops should be withdrawn "without further delay," according to an August 19 report in the London Independent.

An earlier August 7 Washington Post report said "Shiite militias there have escalated a violent battle against each other for political supremacy and control over oil revenues" or maybe for other reasons the Post ignored. The report continued stating "Three major Shiite political groups are locked in a bloody conflict that has left (Basra) in the hands of militias and criminal gangs, whose control extends to municipal offices and neighborhood streets." Their main goal, in fact, may be no different than other resistance groups - to drive out a repressive occupier (the British in the South in their case) and reclaim their sovereignty. Afterwards they can sort out how to run their country.

Things are little different in Afghanistan according to an August 19 London Guardian report revealing a shocking human toll on British forces (likely affecting Americans, too) that may signal a future withdrawal there as well as from Iraq. It cites military figures showing nearly "half of frontline troops have required significant medical treatment during this summer's fighting....in southern Helmand province (that) offered some of the most intense fighting (British troops had been engaged in) for 50 years." One soldier on the ground said "You could be in the army for decades and you will never get anything like that again." It's so intense, many British soldiers intend to leave the military when their duty tours end - if they survive them.

Back Home It's Politics As Usual

Bush-supportive Republican and Democrat hopefuls have their own issues to deal with and getting reelected (or elected President) tops them. They're stuck with the Iraq quagmire they backed from the start, know America is in Iraq to stay, but have to appeal to their base with soothing rhetoric even knowing expecting victory is pure fantasy. Billions spent on huge super-bases, an extensive base infrastructure and the largest US embassy in the world dispel talk of withdrawal with proof on the ground. So while pledging to end the war and bring home the troops, all major Democrat and Republican candidates say it will take years to accomplish and America must stay engaged for the duration. They mean forever.

The reasons given are pathetic and the usual kind of campaigning blather by aspirants trying to have it both ways - withdraw, but leave enough there to prevent:

-- Iraqi genocide,

-- civil war,

-- violence from spilling into other countries,

-- out-of-control lawlessness and the country becoming a breeding ground and staging area for broad-based "terrorist" attacks anywhere - that, in fact, the occupation incites,

-- instability only our presence can contain (that, in fact, causes). We also must:

-- protect American personnel (who shouldn't be there) and Iraqis (we're "killing" with our "kindness"),

-- train Iraqis (who can run their own country quite nicely without us),

-- contend with all other possibilities, and more.

Rhetoric goes even further with Hillary Clinton citing the need to fight "terrorism" and stabilize the Kurdish North, never mentioning the serious threat Turkey may invade in force and ignite a whole new war with untold consequences if it happens.

The logistical problem of troop withdrawal then comes up. Candidates claim it'll take a year or more to accomplish when, if fact, the only issue is the will to do it. Iraqis will be delighted to help. Candidates like flexible options, however, so it's easy saying future policy depends on conditions at the time that now look "uncertain" at best.

Hillary Clinton is a metaphor for the times by her pious comment that if George Bush doesn't end this war, she will if elected. She won't say when, and in a turnaround states her real view that America has "remaining vital national security issues in Iraq" (spelled O-I-L) requiring our permanent presence in the country. So for her and other hopefuls, withdrawal is nice-sounding rhetoric, but when it gets down to policy, America is in Iraq to stay, so get over it.

Her leading opponent, Barak Obama feels no different with high-minded speechifying that "It is time to bring our troops home because it has made us less safe" (never mentioning the toll on Iraqis). He then admits away from supportive crowds he supports a permanent military presence in the country for the usual phony reasons hiding the real ones.

Dick Cheney's hidden ones just surfaced in a 1994 video explaining why he advocated leaving Iraq after the Gulf war. When asked then if US or UN forces should have occupied Baghdad, he answered "no" because it would become "a quagmire if you go that far and try to take over (the country)." He then highlighted the issue of casualties stating "how many additional dead Americans is Saddam worth? Our judgment was, not very many, and I think we got it right." Indeed he did, yet he ended up doing in 2003 what he thought foolhardy nine years earlier. So much for leadership, let alone honor and respect for the rule of law and rights of people everywhere to be sovereign and free.

Honor, public service and respect for sovereign freedom aren't parts of the New York Times agenda either, nor was it ever going back decades. A recent example was its August 13 editorial titled "Wrong Way Out of Iraq" in which it argues for a permanent US military presence in the country and against a significant troop drawdown. The Times position is pathetic but typical of its kind of reporting and editorial positions. It pledges allegiance to the US empire and the corporate giants for which it stands....with liberty and justice for them alone. Wars of aggression, scorn for the law, massive human suffering and deprivation are just business as usual for "the newspaper of record," indifferent to it all.

The editorial bluntly stated "The United States cannot walk away from the new international terrorist front it created in Iraq" while never admitting our presence causes violence that won't end while the occupation continues. It then added "there should be no illusions about trying to continue the war on a reduced scale. It is folly to expect a smaller American force to do in a short time what a much larger" one couldn't do over a longer period.

From the start, the Times was in the lead (with Judith Miller its chief front page voice) supporting the Bush war agenda to establish imperial control over the part of the world with two-thirds of all proved oil reserves. Look for more "stay the course" editorials and front page features in the run-up to Petraeus' mid-September "progress" report calling for continued patience, no troop drawdown, and lots more funding indefinitely. Democrats and Republicans alike are supportive with the Times out in front as lead cheerleader.

Unmentioned is that the war is unwinnable and Dick Cheney's 1994 prediction proved accurate. Those factors likely played into Karl Rove's August 13 resignation, but he didn't let on why beyond the usual stuff they all say about wanting more time with his family. Nonsense, but shed no tears for a man who may have outsmarted himself, yet isn't going away. Rove may move out of the spotlight, but he's not out of the game. He's sure to continue as a master-manipulator elsewhere, for another right wing scheme, or perhaps for the entire Republican party behind the scenes in some reengineering or new strategizing capacity if anyone wants him. Later on they'll be lucrative book deal and lecture circuit fees sweet enough to keep any fallen politico living happily ever after.

In the end, however, the record will show Bush's Svengali failed to pull off his greatest scheme - solidifying the Republican base, building a generation-long super-party majority in Congress, and assuring a Republican gets elected President in 2008. His bungled post-9/11 strategy also resulted in the 2006 mid-term election defeat with things looking even bleaker as 2008 approaches.

Rove may also be leaving for another reason that at this point is pure conjecture. It may involve avoiding further congressional scrutiny. It's not off the table, but soon may be as part of a White House deal with Democrats softening in return for something its leaders want. That's how business is done in Washington where the criminal class is bipartisan and one favor begets another. Expect anything ahead in the dirtiest game around for the highest stakes with the public left out, in the dark, and nowhere in sight.

Looking Ahead in Iraq

In his August 10 AntiWar.com article titled "Mechanistic Destruction: American Foreign Policy at Point Zero," distinguished historian Gabriel Kolko notes the US rarely ever "lost any conventional military battle since at least 1950. Nor has it....ever won a war." In all its wars since Korea, it failed to win a single victory. It's good at overthrowing governments, but the political fallout often ends up "far, far more tenuous. In a word, in international affairs it bumbles very badly" making an "unstable world far more precarious" than if it left well enough alone. "All this is very well known," Kolko states. "The real issue is why the US makes the identical mistakes over and over again and never learns from its errors."

We're now "losing two wars and creating a vast arc of profound strategic and political instability from the Mediterranean Sea to South Asia." In addition, we reignited the arms race in Europe, turned a friendly Russia into a foe, and are heading the country toward possible bankruptcy through reckless fiscal policy. In sum, "this administration has been at least as bad as any (in the nation's history and perhaps it's) "the worst" ever.

By its record (with plenty of Capitol Hill help), it's fair to compare Washington to an asylum with members of both parties the inmates. An outside observer would have to conclude the inmates were in charge, and it shows by what's happening. It also brings to mind the Wile E. Coyote cartoon character as a way to explain it. Bush's political agenda has been disastrous, yet both parties continue supporting the same mistakes expecting a different outcome.

Impossible, according to Kolko, saying the nation is "at point zero in the application of American power in the world." We can't win two "extremely expensive adventures nor will (we) abstain from policies" hurting other nations and our own. Myopia, self-interest and a lot of arrogance have led us to this "impasse," and Kolko isn't optimistic. He's also a noted expert on the Vietnam war having written the seminal work on its history he says was "purchased by many base libraries, (and) military journals (treat) it in detail and very respectfully."

With that in mind, it's fitting to draw parallels to that earlier time. They're striking even though marked differences exist as well. By the late 1960s, victory in Southeast Asia was considered unattainable and a new strategy was needed, even though it developed slowly. It was called Vietnamization combined with duplicitous and delaying diplomacy orchestrated by Nixon's Svengali, Henry Kissinger. He also ended discredited with Karl Rove his Bush administration equivalent for domestic policy in the role of former Deputy Chief of Staff to the President as of August 31.

The Pentagon has a current version of the Vietnam era plan. It's been arming and training Iraqi Security Forces (ISF) as our enforcer hoping US troops eventually can stay hunkered down in super-bases as backup. In the early to mid-1970s, Vietnamization failed because, as Kolko explained, victory isn't just about tactics, weapons and winning battles. Economic, social, political and morale factors come into play. The same holds true today in Iraq.

In Vietnam, the revolution was a powerful defense against a foreign invader. An emboldened North used it, was more committed, and had majority popular support on its side. They had enough of the Japanese earlier followed by the French and Americans making any alternative an improvement as long as it meant peace with their own leaders in charge.

Those leaders didn't resist the Japanese and then fight a 30 year war to give it up in the end a foreign occupier and its imperial ambitions. At least that's how it was then. Vietnam kept its territory but, in the end, surrendered its economic sovereignty to the lord and master of the universe it could outlast on the battlefield but not in the marketplace.

Iraq one day may be no different turning a future resistance victory into eventual economic defeat somewhere down the road. The country has enormous untapped oil reserves thought by some analysts to be potentially greater than Saudi Arabia's they believe are overstated. Iraq's remained undeveloped because of almost continuous war preventing any since September, 1980, or for nearly 27 years.

Even so, it has around 10% of proved world reserves that will be far greater when all potential deposits come online. Whoever controls them will have an economic bonanza worth many trillions of dollars. It may entice a future Iraqi government to partner with the US-led West, and by so doing let America win in the marketplace what it can't achieve in battle. In the end, Iraq may surrender as Vietnam did and lose everything now being fought for. How this plays out will only be known in the fullness of time. Millions of Iraqis hope equity and justice will triumph over greed and are betting their lives on it. May their struggle not be in vain.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time and now archived for easy listening.

Wednesday, August 15, 2007

A "Slow Motion Train Wreck"

A "Slow Motion Train Wreck" - by Stephen Lendman

These days, financial/market punditry seems to follow two opposite lines of thinking. It ranges from the predominant view that world economies are growing and sound, problems in them minor and fixable, and current volatility (aka turmoil) is corrective, normal and a healthy reassessing and repricing of risk. Contrarians, on the other hand, believe the sky is falling. Most often, extreme views like these turn out wrong and are best avoided. Things are never that simple and hindsight usually proves only Cassandra was good at forecasting although calling market tops and bottoms wasn't her specialty.

Amidst all the commentary and sorting out of market Strang und Durm these days, some financial world figures stand head and shoulders above the rest for their wisdom, level-headednessness and believability. One in particular is Jeremy Grantham, called by some the philosopher king of Wall Street even though he's based to the northeast in Boston. In 1977, he co-founded Grantham, Mayo and Van Otterloo, now known as GMO. In his Quarterly Letters to clients, he assesses current market conditions and usually takes a longer view as well. His commentaries are detailed, scholarly, sober and clear.

The Vanguard Group of mutual funds founder John Bogle calls Grantham "one of the top two or three individuals in this business (and) If there's anybody in this whole business who calls a spade a spade (that person is) Jeremy Grantham." A metaphor for his wisdom, attitude and investing style sits aside his office desk. It's a huge 9th century stone Buddha signifying "everything in moderation" and one of Grantham's core beliefs that all markets eventually revert to their mean values from their highs and lows.

Based on his company's exhaustive research, there are "no exceptions ever." Bubbles come and go, but, in time, they all settle back in same place. As Grantham puts it: "We know one principal truth at GMO and that is that we live in a mean-reverting world in investing. (Our research) has shown....that all bubbles....eventually break (and our definition of a bubble is a) 2 standard deviation event - the kind of moves that occur about every 40 years." Grantham mentions four stock market ones in particular that stand out - the US in 1929, US again in 1965 - 72, 1989 in Japan (in land and stocks) and the still ongoing greatest ever US 2000 bubble yet to come back to its mean.

Grantham is known in the trade as a value investor. That means buying financial assets at less than their intrinsic value or what famed investor/Columbia University professor Benjamin Graham (1894 - 1976) called a "margin of safety." Warren Buffett today calls it "finding an outstanding company (or any financial asset) at a sensible price" as opposed to a bargain that may turn out bogus or a booby trap. Grantham correctly called the equity bubble in the late 1990s and believes the 2000 - 2003 bear market is secular, long-term, and unlikely to end before 2010 despite a continuing four year cyclical bull run reprieve from 2003 to the present. Only in the fullness of time will he, and the rest of us, know if he's right.

Earlier in the year, Grantham toured the world for six weeks, returned worried, and wrote about it in his April Quarterly Letter titled "It's Everywhere, In Everything: The First Truly Global Bubble." It's "bubble time," he observed "from Indian antiquities to modern Chinese art; from land in Panama to Mayfair; from forestry, infrastructure, and the junkiest bonds to mundane blue chips." All the necessary conditions are in place - "fundamental economic conditions" look excellent; central bank supplied liquidity is plentiful and cheap; and there's so much around, it's easy to leverage. Since around mid-July or so, the latter condition no longer is true or perceived to be by investors turned cautious and in some cases even panicky.

Grantham explains human behavior causes bubbles when positive market conditions unleash "animal spirits" to capitalize on opportunities that get carried to extremes when there's enough cheap credit around as fuel. Even in the best of times, that's a recipe for trouble with success feeding on itself. It signals by leveraging up, the better investors can do until the music stops as it always does, and the longer and louder it's been playing, the severer the subsequent headache.

No one knows for sure when big trouble's coming next or how bad it'll be when it arrives. Up to early summer, it was smooth sailing and easy profits, but Grantham says what he sees today is unprecedented: "everyone, everywhere (in all asset classes) is reinforcing one another." Across the world you hear it confirmed that "they don't make any more land (and) with these growth rates and low interest rates, equity markets must keep rising (and) private equity (plus merger mania, huge stock buy-backs and plenty of central bank supplied fuel) will continue to drive the markets."

It's become self-reinforcing and the results are "predictable and consistent." The three major asset classes - real estate, stocks and bonds - are "expensive compared with (their) replacement cost where it can be calculated." Equally worrisome, risk premiums "reached a historic low everywhere" until just weeks ago.

Grantham's conclusion is these are all warning signs spelling eventual trouble because as noted above "Every bubble has always burst (with no exceptions, ever)." When the 2000 bubble deflation resumes, "it will be across all countries and all assets, with the probable exception of high grade bonds." In addition, risk premiums will widen (and now are) forcing companies to pay higher financing costs for borrowed funds that will depress investor confidence and reduce economic activity.

No one knows how deep or protracted a decline will be, but Grantham stresses it's coming because the current global bubble is unprecedented. "No similar global event (of this magnitude ever) occurred before." Now that's pretty scary stuff to chew on because economic troubles bite everyone and most of all those most vulnerable and least able to weather the storm. That includes ordinary working people with little or nothing invested.

During the current bull run, Grantham was troubled as early as January, 2004 when he advised clients that "The outlook for 2004 is not bad, but the (stock) market is very overpriced and all predictors look bad for the next year and the year after." As things turned out, he was wrong, or perhaps with future hindsight just way early in his judgment. He was troubled again at year end 2005 when he told investors to "prepare for a decline in the performance of equities and other risk assets in 2006." Once more, his call was either early or wrong as the past 18 months saw considerable strength until just recently.

His January, 2007 Quarterly Letter assessed what happened saying "Against all odds, Goldilocks tiptoed through the perils of the first (2005) and second (2006) year of the Presidential Cycle....it (2006) was the rarest of rare birds - a perfect year." As a result, "risk taking also prospered" because of low global inflation, no financial crises anywhere, low interest rates, and "very very" available credit. As things turned out, "this was almost certainly the best year in the entire history of finance for the selling of high credit risks at low premiums."

One extreme measure of it was the quadrupling of so-called securitized Collateralized Debt Obligation (CDO) instruments (packages of risky and other debt) to around $2.5 trillion facilitated by the so-called "expanded 'carry trade' of borrowing in cheap (low interest) Japanese and Swiss currencies."

Downsides often accompany opportunities, and Grantham explained conditions going into 2007 in breathtaking terms. "Goldilocks global conditions, especially cheap and easy credit, have caused the broadest overpricing of financial assets - equities, real estate, and fixed income - ever recorded." However, he stressed, "Just because risk taking is off the charts does not mean it can't keep going for another year" or longer.

The end of a Goldilocks economy was clearly on the minds of people Grantham met on his world tour. Everywhere he travelled he was asked "What is the catalyst for a (market) break" when none was then visible or imminent? He answered citing these vulnerabilities: rising inflation (that's greater than reported) constraining central bank support for a weakening economy, pointing to the US as an example. This, in turn, will slow economic activity and reduce profit margins that are still way above global norms but will come down.

Then there's the housing decline a Center for Economic Policy Research (CEPR) report shows is the result of overbuilding and home prices rocketing 70% in value since 1995 adjusted for inflation. It "created $8 trillion in housing bubble wealth" and an unprecedented oversupply of unsold homes and "vacant ownership units." CEPR believes the coming housing bubble correction "is likely to throw the economy into a recession and quite possibly a very severe (one)."

It notes housing construction has to decline, and revaluing $8 trillion in housing wealth excess will reduce consumption and bring saving rates "back to more normal levels." Consumers need all they can get because, at today's elevated prices, the average potential home buyer can't afford one, and, as one analyst observed, lenders are relearning how to say "no."

Current economic conditions worry PIMCO's Bill Gross as well. PIMCO is a 36 year old firm and "one of the largest specialty fixed income managers in the world." Gross is one its founders and serves as managing director and chief investment officer. In his July Investment Outlook, he said people are "looking for contagion in all the wrong places." The Bear Stearns and other hedge fund losses are "now primarily history (and) can be papered over with 100 cents on the dollar marks." The real problem lies in "those millions and millions of homes....not going anywhere....except for their mortgages....going up, up, and up....and so are delinquencies and defaults."

He cites a recent Bank of America estimate that about $500 billion of adjustable rate mortgages (ARMs) will be reset in 2007, another $700 billion in 2008, and a large proportion of them are subprimes. He noted 7% of these loans are now in default, and the "percentage will grow and grow like a weed in your backyard tomato patch." This will affect real money in the hundreds of billions of dollars of "toxic waste" that will spill over into reduced consumption, less new home construction, and even AAA-asset backed commercial paper "feel(ing) the cooling Arctic winds of a liquidity constriction."

In Gross' view, the sky isn't falling, and "there is no hint yet of a true 'crisis' - these developments" may, in fact, have a salutary effect with "easy credit becoming less easy (and) excessive liquidity returning to more rational levels." Gross still sees strong global growth ahead, but as a bond fund manager, he's paid to worry.

In his report, Grantham is worried, too, and notes the housing decline affects prices, credit growth and consumption when subprime and other loan rates are reset higher with a considerable amount coming this year and even more ahead as just noted. In addition, and most significantly, he says rising inflation and widening risk premiums lower "the feasible leverage in private equity deals and place many deals that can be done today (meaning last spring) out of reach, which, in turn, has dire effects on the current stock market (and economy)."

In his current July client Letter, Grantham conceded "no areas of this unprecedented global bubble had yet gone hyperbolic like the internet and tech stocks did in 1999 (until now):" The "candidate" is "the growth rate of leveraged loans. At (a hugely speculative) $545 billion for the first half of this year, it is running 60% up on last year" that's about the same size gain dot.com and tech stocks made year over year in 1999 with painful consequences not far behind for investors owning them.

Grantham's July commentary mentioned one other likely market headwind after the 2008 election. It's the expected fallout from "piling on" moves of "more wealth to the wealthy by shifting more of the tax load to sales and income taxes of average taxpayers and away from the capital gains and dividend taxes of the wealthy." It means "ordinary working stiffs are not doing particularly well....and are getting antsy" enough to worry politicians to raise taxes on the most well-off.

Grantham expects them to come in higher taxes on capital gains, dividends and top-end ordinary income rates as well as redefining what income is. That will mean more of it will be taxed to reduce the gross disparity between what rich and ordinary folks now pay, and not a moment too soon for those championing fairness, not special privilege. If this happens, however, it "will not be good for the animal spirits of investors" who represent the most important bubble-sustaining input.

Grantham sums up his current thinking with what he calls a "torture(d) analogy." He compares the global financial system to a giant suspension bridge. "Thousands of bolts hold it together. Today a few of them have fractures and one or two seem to have failed completely. The bridge, however, with typical redundancy built in (unlike the Minnesota one that collapsed), can (easily) take a few failed bolts, perhaps quite a few....This global financial structure is far too large and has far too many interlocking pieces for weakening US house prices and a few subprime issues to bring it down."

What is worrisome is whether or when we reach a "broad-based level of financial metal fatigue" causing simultaneous multiple bolt failures "with ultimately disastrous consequences." What's also scary is the global financial structure is heavily "faith based, held together by unprecedented amounts of animal spirits" moving in the same positive direction. If the faith wanes, it's then "every man for himself" and look out below.

Also worrisome, but so far contained, is growing subprime mortgage trouble. Until a month ago, equity markets were totally unaffected and may bounce back from their current sell-off. Grantham isn't panicking but shows concern about flat to declining home prices, a high inventory of unsold homes likely moving higher, and mortgage "honeymoon rate" reset increases up to 2.5 points coming soon for holders "already stretched." We're told, he says, that even the subprime market is "contained," but we have to wonder if "the container, in this case, will turn out to be Pandora's."

Then there's a slowing economy, inflation concerns, high oil and other industrial commodity prices and now agricultural ones as well "boosted by ethanol production" pressuring consumers. "So two of the three great asset classes (now all three) are having the wobblies in some of their components" - real estate and low grade debt (and since mid-July equities and other type debt instruments as well), "especially real-estate related but increasingly including corporate loans and private equity funding...."

Grantham may have written this commentary before the the July-mid-August equity market sell-off. However, based on his prior (and long-standing) comments, his current analysis probably still holds true: "stocks (will likely) make it through this third (and traditionally strongest) year of the Presidential (four year market) Cycle." The third year in the Cycle "has never declined materially and should be considered the bane of short sellers (and equity market naysayers) everywhere."

In sum, Grantham says, "a few more bolts in the bridge may fail, but in the end you have to bet the bridge will hold, supported by amazing animal spirits." At least that's true up to October when the fourth year of the Cycle begins. Then, the "odds of failure rise" but won't likely become high until October, 2008 with a new administration and Congress soon to take power. Grantham then gets blunt stating "based on history" (and tax increases he expects), that's the most likely time for a bear market, and he's betting on one that could be nasty.

He concludes saying he's been trying to come up with a simple way to explain "how serious the situation is for the overstretched, overleveraged financial system." He does it this way: "In 5 years I expect....at least one major bank (broadly defined) to have failed and up to half the hedge funds and a substantial percentage of the private equity firms in existence today (to have) simply ceased to exist."

He continues saying he's been too bearish at times in the past 12 years but his language "has almost never been this dire." His feeling is that today we're "watching a very slow motion train wreck" beyond the point of stopping so watch out ahead. It's a good idea to be cautious and prepare. If he's right and economic conditions deteriorate enough, everyone will be affected through job and income losses along with investors losing big from speculative and other investments. All financial bubbles end. Sadly, even those not participating in them get burned, especially those most vulnerable and least able to ride out the storm that could be mean, nasty and long.

Engineering the Coming Wreck

Back in October, 2002, Grantham took aim at a financial icon Wall Street and the financial press practically defied when he chaired the Federal Reserve from August, 1987 to end of January, 2006. It didn't matter to them (and still doesn't) that he engineered the largest ever stock market bubble and bust in history through incompetence, timidity, dereliction of duty or a combination of all three. In their eyes, Alan Greenspan was above reproach. He could do no wrong, and here's why. His policies made it possible for wealthy and powerful investors to cash in big as long as the party lasted, and then get plenty of advance warning when to exit.

Most ordinary investors, on the other hand, were caught flat-footed based on advice from market pundit fraudsters with Mr. Greenspan most deceptive and influential of all. In January, 2000, just weeks short of the market peak, he claimed "the American economy was experiencing a once-in-a-century acceleration of innovation, which propelled forward productivity, output, corporate profits and stock prices at a pace not seen in generations, if ever."

Grantham's reply to this outburst: "Phew!" He might have also drawn an analogy to famed Yale University economics professor Irving Fisher's comments just before the 1929 stock market crash. He claimed economic fundamentals in the country were strong, the stock market was undervalued, and an unending period of prosperity lay ahead. It just took over a decade to arrive and plenty of pain to go around before it did.

Grantham spared Fisher, but bashed Greenspan saying: "The internet (highlighted by the dot.com bubble), which had 'pushed back the fog of uncertainty' for corporations, was his particular pet." It's hard to believe now Greenspan actually said: "Lofty equity prices have reduced the cost of capital. The result has been a veritable explosion of spending on high-tech equipment....And I see nothing to suggest that these opportunities will peter out anytime soon....Indeed many argue that the pace of innovation will continue to quicken....to exploit the still largely untapped potential for e-commerce, especially the business-to-business arena."

One week later, the Nasdaq peaked at 5048 and fell to a low of 1114 on October 9, 2002 losing 78% of its value. The broadly based S&P 500 stock index merely dropped from its March 24, 2000 high of 1527 to an October 9, 2002 bottom at 777 for a loss of 49%. Mr. Greenspan was nowhere in sight but was busy reengineering phase two of the bubble with a tsunami of easy money. His successor now continues the same policy despite his high-sounding Fedspeak concerns for inflation and a stable economy. Call it more Fedbaloney pointing to the obvious eventual consequences ahead. The Fed-built credit bubble and other excesses are unwinding. Before it's over, they'll be plenty of pain to go around and another culpable Fed Chairman claiming no responsibility and being able to get away with it.

Grantham was clearly upset in October, 2002 and made his views known to investors. His commentary was titled "Feet of Clay - Alan Greenspan's Contribution to the Great American Equity Bubble." He started out with a Fed Chairman's job description saying "In its earlier years, the Fed's emphasis seems to have been on economic activity....By the nineties, the heavy emphasis (shifted) to inflation control." Both objectives are "critical to stability," because the Fed's "underlying job" is to maintain "general economic stability," not fuel bubbles. "Nothing threatens (that stability) more than the deflating of a major stock market bubble." It's the Fed's job to spot and moderate them in time and be willing "to bear the (political) consequences" for its actions. Alan Greenspan failed on all counts.

"Did he see the (largest in US history) bubble coming," Grantham asked? He provided generous amounts of liquidity fueling it, and when things began getting out of hand, all he did was suggest "irrational exuberance" might have "unduly escalated asset values" in a December, 1996 speech. He did nothing to curb it then or thereafter whereas he could have raised interest rates, margin requirements and added a lot more jawboning persuasion to cool an overheated market and restore stability.

Grantham was clear and emphatic: "Had Greenspan been prepared to use all the tools available and shown his determination, it almost certainly would have worked" enough to prevent the market plunge after March, 2000. Not only did he fail to act, but he then denied all responsibility for what Grantham called "the Greenspan fiasco....he has overtaken my efforts with his breathtakingly shameless and complete denial of responsibility....he seems to have believed....this new era nonsense (at its) March 2000 (peak more completely) than anyone else....the title of 'most credulous' (and Fed Chairman) belong to the same man." By his concocted "logic," he'd have "fail(ed) a Finance 101 final."

Even worse, Greenspan "had the knowledge, experience, and belief and failed to act." Yet, to this day he's gotten away with it. He's still extolled in lofty terms, practically elevated to the ranks of sainthood, and is now retired to new "green" pastures of lucrative book deals and speaking engagements (at $100,000 fees) where his every word is still taken as market gospel. In addition, Greenspan Associates began operating in May with his lawyer, Robert Barnett, saying "virtually every major investment-banking firm" in the world is eager to hire him for his rainmaking connections. Better those than his advice best avoided.

The Greenspan legacy got Grantham to conclude: "You can indeed 'fool most of the people all of the time.' 'Most of the people' this time probably included Her Majesty who (days earlier on September 26) knighted (Sir Alan) for his global services. My secret hope though is that she justified it by having had a good short position for the last 3 years." Or "short" of that, been tipped off in time to bail out at the top and let her subjects take the pain.

Engineering the Coming Wreck - Part II

Other than rampaging armies on the move, no institution anywhere has more power than central banks. And no central bank has more of it than the US Federal Reserve unless it's the secretive, unaccountable Bank of International Settlements (BIS) founded in 1930 and based in Basle, Switzerland. The BIS is central banker to its member banks (a sort of financial boss of bosses) that includes the Federal Reserve.

Some savvy financial experts believe the world's ruling elites control this bank of banks and intend using it to establish a global borderless financial world controlled by them. It's no hairbrained conclusion with the European Union in place, talk of a similar one in Africa, and a North American Security and Prosperity Partnership arrangement coming to a head that will create a borderless continent headquartered in Washington and likely will aim next to link with the EU for greater global control.

So what's important about the Fed, and why should we care? Despite common belief, the Federal Reserve is not a government agency. It's a privately owned for profit cartel of powerful banks (including Wall Street ones) protected by law, even though the Federal Reserve Act of 1913 violates the US Constitution. It's Article I, Section 8 states "The Congress shall have Power To coin Money (and) regulate the Value thereof..." In 1935, the Supreme Court ruled only Congress has this power and cannot constitutionally delegate it to another group or body, and that includes private for profit bankers running the Fed.

Simply put, commercial banks in charge of printing and controlling the nation's money supply constitutes criminal fraud. It's the reason the Federal Reserve was designed to look like a government agency when, in fact, it isn't. Being headquartered in Washington in the stately mausoleum-looking Eccles building is just part of the clever subterfuge.

But it's even worse than that. By establishing the Federal Reserve, Congress and President Woodrow Wilson privatized the nation's money creation system relinquishing the most important power governments have that got famed banker Baron MA Rothschild once to say: "Give me control over a nation's currency and I care not who makes its laws."

Ever since US private bankers got it, they've been empowered to print money in any amount, control its supply and price, and benefit hugely by loaning it out for profit. That includes making government pay interest on its own money it wouldn't have to do by printing its own. This amounts to no less that government sanctioning the right to counterfeit the national currency for private gain with the Fed and private bankers being world class pirates masquerading as guardians of the public interest.

It's no exaggeration to call this the all-time, greatest ever financial scam, still ongoing, and totally beyond the reach of public or any other type scrutiny. If there were any, it would be learned this institution was created as a scheme to transfer wealth from ordinary people to giant banks and Wall Street. It's worked like a charm, and few people are the wiser.

But there's more still to the story, and it keeps getting uglier. Supposedly, the Federal Reserve was established to stabilize the economy; smooth out the business cycle; maintain a steady, healthy rate of sustainable growth; create price stability and control inflation; and work for the betterment of everyone. So let's grade it on its performance.

Since 1913, we had economic crashes in 1921, and the major one in 1929 followed by The Great Depression lasting until the outbreak of WW II. Post-war, we then had recessions in 1953, 1957, 1969, 1975, 1981, 1990, 2001, and we're likely heading for future major trouble resulting from past Fed policy abuses under Alan Greenspan and his successor, Ben Bernanke, carrying on in the same fashion. We also had a serious inflation problem beginning in the 1960s that became crisis-level severe in the 1970s and early 80s. In addition, in the wake of reckless financial market deregulation in the 1980s and lack of government oversight (with the Fed's blessing), we had a major financial crisis causing more bank failures than ever before or since in our history.

Further still, under the Fed, we've had -

-- soaring consumer debt;

-- record high federal budget and current account deficits;

-- an off-the-charts national debt, far higher than the fictitious reported number;

-- a high and rising level of personal bankruptcies and mortgage loan delinquencies and defaults;

-- an enormous government debt service obligation we're taxed to pay for;

-- the systematic loss of manufacturing and other high-paying jobs to low-wage countries;

-- a secular declining economy, 84% service-based, and mostly comprised of low-wage, low or no-benefit, non-unionized jobs;

-- an unprecedented wealth gap disparity;

-- growing rates of poverty in the richest country in the world;

-- a decline of essential social services; and

-- a lawless nation devoted to militarism and imperial conquest with the Federal Reserve complicit in supplying all the funds needed to fuel it, and all the while caring not for the public interest it's supposed to serve.

This type record adds up to a clear conclusion. Above all else, the Federal Reserve failed to accomplish what it's supposed to do revealing instead what's really going on. The Fed doesn't serve the public interest. It abuses it because that's how bankers and all corporate predators make money. In the world of finance, ordinary people lose out because giant banks and Wall Street are allowed to pull off the grandest of grand thefts, their thievery continues unabated, and the stakes keep rising.

Some astute financial observers now believe current excesses and resulting turmoil were caused by the intentional engineering of the US housing bubble with the Fed in on the scheme. Insiders made loads of easy money in the process and now stand to cash in big buying troubled assets for a fraction of their value the way they always do in the wake of market meltdowns. It's called "vulture" investing with shrewd buyers profiting hugely in good and bad times that are all good for them.

One analyst calls the subprime mortgage turbulence a global bank run with potential huge yet to emerge consequences. Writer Danny Schechter has another view in his article titled: "Subprime Or Subcrime? Time to Investigate and Prosecute," and he makes a strong case. He calls the subprime credit squeeze a "sub-crime ponzi scheme (causing) millions of people (to lose) their homes because of criminal and fraudulent tactics used by financial institutions (posing) as respectable players in a highly rigged casino-like market system." There's nothing free and open about it.

The problem is deep, structural and aided by stripped away regulatory protections giving predatory lenders and Wall Street schemers free reign to target unsuspecting victims. Part of Schechter's fix is calling for a "jailout," not a "bailout," but with friends in high places, don't bet on it beyond a small fry or two. It's sad and disturbing because this type behavior is part of the American "ethic" to scheme, defraud and prey on the innocent knowing big players nearly always get away with it, and under George Bush, it's practically guaranteed.

With a clear field ahead and friends in high places, the "Masters of the Universe" are now heading for their perfect kind of buying opportunity if Jeremy Grantham and other worriers are right. Manipulation aside, Grantham's persuasive evidence suggests we're watching an unstoppable "very slow motion train wreck" likely to be pretty ugly on "impact." By his reckoning, it's probably too late to undue the enormous damage done no one will escape from. His advice is that to be forewarned is forearmed to prepare as best as possible although for most people it's practically impossible.

It's a good time to think of the ancient Chinese proverb, that's, in fact, a curse and not of Chinese origin, but it sounds good saying it is: "May you live in interesting times." Whoever coined the phrase intended it to be ironic and "interesting" meant dangerous, turbulent or uncertain. That, indeed, is true now but to what degree we'll only know in the fullness of time.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time and now archived for easy listening.

Thursday, August 09, 2007

Reviewing Marjorie Cohn's "Cowboy Republic"

Reviewing Marjorie Cohn's "Cowboy Republic" - by Stephen Lendman

Marjorie Cohn is a distinguished law professor at Thomas Jefferson School of Law in San Diego where she's taught since 1991 and is the current president of the National Lawyers Guild. She's also been a criminal defense attorney at the trial and appellate levels, is an author, and has written many articles for professional journals, other publications, and for noted web sites such as Global Research, ZNet, CounterPunch, AfterDowning Street, Common Dreams, AlterNet and others. Her long record of achievements, distinctions and awards is broad and varied for her teaching, writing and her work as a lawyer and activist for peace, social and economic justice.

Cohn's latest book just published, and subject of this review, is titled "Cowboy Republic: Six Ways the Bush Gang Has Defied the Law." It provides a thorough, impressive and incisive account of the most important ways the Bush administration defied, defiled and weakened the rule of law and by so doing hurtled the nation toward tyranny. This book is an essential guide to their lawless record, its threat to the nation and world, and the desperate need to confront it, challenge it and remove it from office before it's too late. The stakes couldn't be greater - the fate of the republic hangs by a thread as well as all humanity if people of conscience fail to act and swiftly. Cohn's book lays out the problem clearly. The rest is up to us.

Richard Falk, Professor Emeritus of International Law at Princeton University, introduces what's to follow in his brief introduction to Cohn's book. In it, he states the most important lesson of the disastrous Iraq war is that "adherence to international law serves the national (as well as) human interest in time of war." More than at any other time, with the nation at war, US presidents can practically operate as dictators outside the normally constraining check and balancing influences of the other two branches of government, when they choose to use them.

For the past six and a half years, they've been nowhere in sight, and George Bush took full advantage. He's defied constitutional and international law with arrogance and impunity including the Nuremberg Principles defining what constitutes a war crime. Falk quotes its chief prosecutor, Justice Robert Jackson, saying ...."the record on which we judge these (Nazi) defendants today is the record on which history will judge us tomorrow." Throughout our history, pre and post-Nuremberg, this nation broke the "Nuremberg promise....repeatedly" but never to the degree as under George Bush. That's the legacy he'll pass to future administrations they'll have to live with and confront as an obstacle in an attempt to move ahead. Their job won't be easy.

Introduction

Cohn begins her book with a definition of "cowboy" applicable to George Bush - one "who undertakes a dangerous or sensitive task needlessly." Other definitions refer to someone who's "reckless, aggressive or irresponsible." Those characterizations pretty much sum up the record of the current President who won't go down in history like the legendary heros who won the West and most dictionaries say are "hired hands who tend cattle and perform other duties on horseback" on the range "where the deer and antelope play."

Despite our nominal constitutional protections, Cohn recounts how the history of the country was marked by abuses of power going back to the Alien and Sedition Acts under John Adams. They were enacted to stifle dissent in time of possible war, but, in fact, were used against Republican opponents to deny them what Jefferson called "the highest form of patriotism" - the right to dissent.

Our reputed greatest President, Abraham Lincoln, followed in Adams' tradition during the Civil War. He suspended habeas and other civil liberties, instituted an unfair draft, blatantly abused his power overall and functioned ad libitum as a virtual dictator. Woodrow Wilson was no different, and so was Franklin Roosevelt, both of whom justified their right to set aside constitutional protections in time of war. No evidence suggests doing it helped. There's plenty, however, to prove they weakened the republic making it easier for future Presidents to take even greater liberties interpreting the law as they wished. Enter George Bush. Case closed.

Cohn notes that few Americans understand international law, or the Constitution either, for that matter, aside from some pro forma words they can recite perfunctorily but not explain. They also don't know international law is US law as well under the Supremacy Clause of the Constitution. It states all treaties "shall be the supreme Law of the Land." They include the UN Charter, four Geneva Conventions, the UN Convention Against Torture banning any form of the practice at all times for any reason, and all other treaties the nation signs. Sadly, Cohn observes, constitutional and international law "didn't prevent a series of executive branch violations in the 1960s (under Lyndon Johnson mostly) and 1970s (egregiously under Richard Nixon) when the executive branch" operated outside the limits of the law they were sworn to uphold but didn't.

Cohn then gets into the meat of her important book recounting George Bush's six specific appalling abuses of power still raging unrestrained out of control and in recent days got even worse as explained below.

A War of Aggression

International law bans premeditated aggressive war under any conditions. The UN Charter clearly states a nation may only use force under two conditions: when authorized to do it by the Security Council or under Article 51 that allows the "right of individual or collective self-defense if an armed attack occurs against a Member....until the Security Council has taken measures to maintain international peace and security." In other words, self-defense is permissible but an unprovoked attack on another nation violates sacred international law and constitutes what the Nuremberg Charter called "the supreme international crime against peace."

Clear evidence exists that the Bush administration intended to attack Afghanistan and Iraq prior to 9/11. All that was needed (as laid out in 2000 by the neoconservative Project for a New American Century - PNAC) was "some catastrophic and catalyzing event - like a New Pearl Harbor" to militarize the nation and wage aggressive war. On 9/11, the Bush administration got its wish and "swung into action" by going to war based on deceit and lies about invalid threats and for reasons other than stated.

Former CIA head of counterintelligence, Vincent Cannistraro, later acknowledged it was based on "cooked intelligence." And CIA analyst Michael Scheuer said the agency was resigned "that we were going to war" and no facts or analysis would stop it. In addition, an August 6 John Conyers-ordered report found that "members of the Bush administration misstated, overstated, and manipulated intelligence with regards to linkages between Iraq and Al Queda; the acquisition of nuclear weapons" along with other lies to justify war including so-called WMDs known not to exist years earlier.

In July, 2002, the New York Times got access to a highly classified document titled "CentCom Courses of Action" containing what the Pentagon called a "war plan" to invade Iraq. It began in earnest as a secret air war in May, 2002 that by end of August "had become a full air offensive," according to the London Sunday Times. British MI 6 chief Richard Dearlove then revealed the secret contents of the so-called Downing Street memo based on a July, 2002 Washington meeting where "the facts (to justify war with Iraq) were being fixed around the policy."

Earlier on September 18, 2001, the administration set off on the road to war with the joint House-Senate resolution passage of the Authorization for Use of Military Force (AUMF). It authorized "the use of United States Armed Forces against those responsible for the recent attacks launched against the United States." Then in October, 2002, Congress surrendered its authority to George Bush by passing the Joint Resolution to Authorize the Use of United States Armed Forces Against Iraq to "defend the national security of the United States against the continuing threat of Iraq." Republicans and Democrats acted together knowing Iraq posed no threat and that its action violated the UN Charter.

Cohn explains the real motive behind attacking, invading and occupying Iraq that by now a bright ten year old understands. Paul Wolfowitz finally admitted using WMDs as an excuse was "for bureaucratic reasons" and the one pretext everyone could agree on. He later had to admit what everyone already knew. The real issue is oil and the fact that Iraq potentially has more of the cheap light sweet easily accessible kind than any other country on earth, including Saudi Arabia. One Wall Street oil analyst calls the country "the most valuable real estate on the planet" and the last of the "low-hanging fruit."

Solidifying a huge military presence in the region is also key with the US well-entrenched now on 106 known sites, including four super bases (with more planned) as large as small towns and with all their amenities, and a Vatican-sized largest embassy in the world. The Middle East is where two-thirds of proved oil reserves are located, and that fact was never lost on present and prior US planners. Notions of WMDs, removing a dictator, protecting national security, preventive self-defense, establishing democracy and conducting a humanitarian mission were all concocted rubbish. Sadly, it was believed by most people and too many still do, the result of lots of forced-fed dominant media hyperventilating help round the clock and on board with the administration to the bitter end for an illegal venture gone sour.

Along with so many other violations of international law, Cohn noted the Bush administration ignored the International Covenant on Civil and Political Rights (ICCPR) that's part of US law "under the Supremacy Clause of the Constitution." Article I (1) says: "All people have the right of self-determination. By virtue of that right they (can) freely determine their political status and (can) freely pursue their economic, social and cultural development." Cohn stated the US had no "legal authority to intervene in the affairs of the Iraqi people and choose their leadership for them."

The Bush administration set about doing it in March, 2003. It followed the secret air war it waged months earlier as a softening up action for the "shock and awe" to come that the New York Times praised as "almost (having) biblical power." The entire corporate media also ignored the use of illegal weapons like depleted uranium, white phosphorous, and cluster bombs that keep killing and maiming long after the end of battle. In addition, experimental weapons are freely used, some targeting innocent civilians to inflict terror, and all intended to subdue a population hostile to a foreign occupier.

These are "weapons of mass destruction," stated Cohn. She also cited the Geneva Convention Relative to the Protection of Civilian Persons in time of War (Geneva IV). It calls "willfully causing great suffering or serious injury to body and health" a grave breach of law. The Bush administration deliberately flouts the law and "is committing war crimes with its use of these weapons." The result since March, 2003 alone has been mass deaths in appallingly high numbers, immeasurable human misery and suffering, and destruction on an enormous scale - all of which is still ongoing daily with innocent civilians afflicted most.

Has it made the US and world safer? Hardly, by any measure and quite the opposite, in fact, according to an April, 2006 National Intelligence Estimate Cohn quoted. It stated the Iraq conflict became "a 'cause celebre' for jihadists, breeding deep resentment (against the US) in the Muslim world (and) shaping a new generation of terrorist leaders and operatives." In committing "the supreme international crime against peace" against two nations, the US has become "the greatest menace of our times," quoting Nuremberg chief Justice Robert Jackson's reference to the crime of aggression and by implication any nation committing it.

The Torture of Prisoners

Post-9/11, "the gloves came off" said former CIA Counterterrorism Center chief, Cofer Black, now part of the paramilitary mercenary operation at Blackwater, USA operating freely outside the law as thuggish hired guns in Iraq, New Orleans and coming soon to a neighborhood near you. Cohn noted "Soon after 9/11, senior administration lawyers wrote memoranda to redefine and justify torture" along with most everything else they planned outside domestic and international law. George Bush announced Geneva Conventions didn't apply to Guantanamo prisoners, and Alberto Gonzales (as White House legal council) sweepingly called them "quaint" and "obsolete" in 2002. What they had in mind is anything goes and that includes torture even though it's widely known not to elicit useful information. It's also known as an effective terror weapon and a useful means of social control.

The practice is also abhorrent and violates at least two US laws - the 1996 War Crimes Act and 1994 Torture Statute. That's along with numerous widely accepted international ones, even though all too frequently many countries, including so-called "civilized" ones, don't observe them. We all know what happened since from the appalling abuses at Guantanamo, Abu Ghraib and at secret CIA and Pentagon 'black sites" around the world. They're in countries known to use torture and are now in league with US agencies doing it for whatever favors they're getting in return.

Cohn reviewed some of the laws banning torture including the 1994 Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment than bans mistreatment as well as torture. The US is also "party to the International Covenant on Civil and Political Rights (ICCPR)" that guarantees the right to life and prohibits cruel, inhuman and degrading treatment. She then notes "the most famous anti-torture treaties are the four Geneva Conventions (of 1949). The first two provide for the protection of sick and wounded (forces in battle)." The third one defines who is a prisoner of war "and establishes minimum standards" for POW treatment. The fourth convention applies to civilians and affords them protections during war that require they be treated humanely.

All four conventions have a common thread called Common Article Three. "It requires that persons taking no active part in hostilities (including the detained) be treated humanely at all times." War crimes are grave breaches under Geneva, and the 1996 War Crimes Act provides up to life imprisonment or the death penalty for persons convicted of committing war crimes within or outside the US. Administration memos from officials like Gonzales as well as John Yoo and Jay Bybee (writing for the DOJ Office of Legal Council) advised Al-Queda and Taliban interrogators were exempt from these laws "under the President's commander-in-chief powers." Cohn explained "the Torture Convention permits no such exemption, even during wartime."

As bad or worse was narrowing and distorting definitions with Yoo and Bybee writing psychological harm must last "months or even years" to be torture. Cohn noted Yoo was the architect of the repressive Patriot Act and domestic surveillance program. Bybee was later appointed to the US Court of Appeals for the Ninth Circuit proving lawlessness is rewarded as long as lawbreakers have friends in high places.

Cohn reviewed how torture was authorized at the highest level with damning evidence from human rights organizations like Human Rights Watch, Amnesty International and the International Committee of the Red Cross (ICRC). They've shown how widespread it's been in Iraq, Guantanamo and at all secret "black sites." Human Rights Watch also documented that its use is "systematic" and known "at varying levels of command" with explicit testimony proving it.

The human consequences are devastating and widespread with the ICRC saying as many as 90% of persons detained were arrested by mistake. Seton Hall University Law School professor Mark Denebeaux and others analyzed unclassified government data gotten through FOIA requests, basing their report on evidentiary summaries from 2004 military hearings. They learned the majority of Afghan prisoners at Guantanamo weren't accused of hostile acts and 95% of them were seized by Afghan bounty hunters who "sold" them to US forces for $5000 per claimed Taliban and $25,000 for supposed Al-Queda members.

What they endure as a result is horrific with Cohn detailing how they're treated that's reminiscent of the Spanish Inquisition or the worst abuses under the Nazis. They amount to a menu of "sadistic, blatant, and wanton criminal" acts against innocent people, including women and children.

One particularly appalling procedure is force-feeding applied to as many as one-third of Guantanamo detainees and an unknown number of prisoners elsewhere. The practice is so violent, it amounts to torture. Tubes, at times the thickness of fingers, are inserted in the nose and thrust all the way down throats and into stomachs causing extreme pain, vomiting up blood, and even greater pain when tubes are removed with blood gushing out in the process.

One victim of this practice described the pain as "unbearable," and attorney Julia Tarver (representating Guantanamo clients) explained physicians violated their Hippocratic Oath to do no harm by being a part of it. The 53-nation UN Human Rights Commission also confirmed in 2006 that "doctors and other health professionals are participating in force-feeing detainees" by this method that amounts to horrific torture.

Cohn noted an August, 2004 Independent Panel to Review Department of the Defense Detention Operations report called the Schlesinger Report. It concluded "Policies approved for use on al Queda and Taliban detainees (who never got Geneva protection but should have)....(are also) applied to detainees who did fall under" Geneva. Another August, 2004 Army report indicated the most extreme abuses "are, without question criminal."

They're also done "by proxy" at "black sites" and through the illegal practice of "extraordinary rendition" with victims secretly sent to other countries where they disappear into torture-prison hellholes, out of sight and mind. The Convention against Torture prohibits what's called "refoulement - expelling, returning, or extraditing a person to another country where there are substantial grounds to believe he would be in danger of being tortured." Popular sites include Egypt, Syria, Saudi Arabia, Jordan, Pakistan, Uzbekistan, Morocco, Ethiopia and other repressive countries. Cohn quoted a former CIA agent saying: "If you want a serious interrogation, you send a prisoner to Jordan. If you want them to be tortured, you send them to Syria. If you want someone to disappear....you send them to Egypt."

With the Bush administration earmarking $63 billion in arms sales or giveaways to client Middle East countries like Israel, Saudi Arabia, Egypt and others, things are guaranteed to get worse and may become explosive and out of control. Increased violence will follow deliveries and with it abusive torture and much more.

On July 19, 2007, after the publication of Cohn's book, George Bush's arrogance, contempt for the law and hypocrisy were on display again in one package contained in another sweeping executive order (EO). According to AP, he "breathed new life into the CIA's terror interrogation program (aka no holds barred torture) that would allow harsh questioning of suspects limited in public only by a vaguely worded ban (signifying none whatever) on cruel and inhuman treatment."

The order pretends to prohibit some practices, "to quell international criticism," describes them only vaguely, and doesn't say what practices are still allowed. The Bush administration insists its interrogation operation is one of its most important tools in the "war on terrorism." Bottom line - ugly business as usual will continue unchanged and unchecked, except for the doublespeak language signifying only deception from a President exposed as a serial liar.

Summary Execution and Willful Killing

Summary executions, or extra-judicial murders, have long been practiced by past US governments with rogue agencies like CIA masters of the black art and skilled at covering its tracks. The Bush regime cares little about subtleties, so its operatives wantonly and openly engage in this simple way of removing adversaries even though Cohn stated: "Willful killing is a grave breach of the Geneva Conventions (and) punishable as a war crime under the US War Crimes Act."

In the wake of the Vietnam war and Watergate, Gerald Ford (because of necessity, not conviction) issued an executive order banning assassinations, but George Bush revoked it secretly in December, 2001. He established a "special-access program" authorizing "clandestine Special Forces to snatch or assassinate anyone considered a 'high value' al-Queda operative, anywhere in the world."

George Bush, with roguish intent, turned a blind eye to willful murder, opening the door to mass, indiscriminate slaughter in Iraq, Afghanistan or anywhere in the world he chooses, including targets at home. In occupied countries, it's allowed the military to operate in so-called "free-fire zones" with orders to shoot anything that moves. It sanctioned the use of terror weapons against resistance and civilian targets with casualties in the latter instance brushed off as "collateral damage."

All Iraq is a "free-fire zone" even though the Fourth Geneva Convention bans collective punishment against an occupied people. The results have been horrific with cities like Fallujah suffering most. The US November, 2004 attack there killed as many as 6000 civilians, the result of vengeful indiscriminate assaults against defenseless people who just happened to live there. In November, 2005 a smaller massacre took place in Haditha where US Marines slaughtered 24 unarmed civilians "execution-style."

Authorizations for these and other banned practices come right from the top with troops in the field likely believing they're licensed to kill by their commander-in-chief, DOD boss and top Pentagon brass. They're right.

Cohn noted allegations are that "US troops have engaged in (routine) summary executions and willful killing (across the country in cities like) Qaim, Abu Ghraib, Taal Al Jal, Mukaradeeb, Mahmudiya, Hamdaniyah, Samarra, Salahuddin and Ishaqi" along with British forces doing the same thing in Basra and southern Iraq where they're based. It's so simple and common a practice that one US soldier described it as easy as "squashing an ant" with no greater price to pay for it. The Bush administration and military command are contemptuous of Iraqis and show it by the huge numbers of innocent people they slaughter daily. In so doing, they commit the worst kinds of war crimes along with torture, abuse and neglect discussed above.

The Guantanamo Gulag

Cohn noted that Amnesty International described this hellhole as "the gulag of our times." Already discussed is the fact that most people sent there, and still held, were innocent bystanders snatched in Afghanistan by bounty hunters able to cash in on a huge payday at the cost of an innocent human being's freedom.

Cohn explained that holding detainees at Guantanamo violates US and international law, and the prison camp itself is illegal. She recounted how "the Gitmo story start(ed) in 1903, when the US Army occupied Cuba after its war of independence against Spain." The Platt Amendment, authorizing US intervention, "was included in the Cuban Constitution as a prerequisite for the withdrawal of US troops from the rest of Cuba." However, it only allowed for the right to use Guantanamo Bay "as coaling or naval stations, and for no other purpose." Franklin Roosevelt then signed a new treaty with the island state in 1934 for the same purpose with no provision to use the territory as an offshore prison camp or military base. Franklin Roosevelt never met George Bush.

Cohn explained it's "no accident that the Bush gang" chose this spot for its gulag, one of many offshore. All along, the administration "maintained that Guantanamo Bay is not a US territory" so US courts and US law have no jurisdiction there. The result is what Cohn called "indescribable torture," and she listed some of the barbaric methods used.

She also discussed "due process" the Bush administration denied all Guantanamo detainees with the Supreme Court disageeing in Rasul v. Bush. In the decision, the Court "settled the jurisdictional question" saying the US exercises "complete jurisdiction and control" at the base with all aliens held there "entitled to invoke the federal courts' authority" under their habeas rights. The Court also rebuked the Bush administration in Hamdi (a US citizen) v. Rumsfeld with Justice O'Conner saying "a state of war is not a blank check for the President when it comes to rights of the Nation's citizens."

In response, the administration established Combatant Status Review Tribunals (CSRT) "ostensibly to comply" with Rasul. They do not as prisoners under them were only entitled to a "personal representative," not a trained attorney able to defend their due process rights. Detainees were also only allowed to see summaries of unsubstantiated classified evidence against them, requests for witnesses were rarely granted, and their "representatives" ill-served them in tribunal hearings. As a result, they got no justice.

Cohn quoted attorney Joseph Margulies saying: "The CSRT is the first time in US history in which the lawfulness of a person's detention is based on evidence secured by torture that's not shared with the prisoner, that he has the burden to rebut and without the assistance of council." Cohn then added: "CSRT violates the International Covenant on Civil and Political Rights which prohibits arbitrary detention and guarantees a detainee the right to be informed of the reason for his detention," the right to council, to examine witnesses, to call witnesses, and "the right to the presumption of innocence."

Shamefully, the Republican-led Congress backed the administration by passing the Detainee Treatment Act (DTA) in December, 2005. It prevents US courts from hearing habeas petitions filed after the date of DTA. Cohn explained "the Supreme Court (then) stepped in again in Hamdan v. Rumsfeld after the Bush administration charged this man (supposedly bin Laden's driver) with one count of conspiracy "to commit....offenses triable by military commission." It held that Congress didn't intend to deny detainees like Hamdan their right to federal court jurisdiction, and that Geneva Conventions do apply.

Cohn then reviewed the outrageous Military Commissions Act (MCA) of 2006, aka "the torture authorization act." It grants the administration extraordinary unconstitutional powers to detain, interrogate and prosecute alleged terror suspects and anyone claimed to be their supporters. In addition, it allows the President the right to call anyone anywhere in the world an "unlawful enemy combatant" and empowers him to arrest and incarcerate those accused indefinitely in military prisons without corroborating evidence proving guilt.

It also annuls habeas for all non-US citizens charged, lets the President decide what constitutes torture, grants US officials retroactive immunity from past crimes, prohibits detainees from invoking Geneva rights, allows "unlawful enemy combatants" and civilians to be tried by military commissions that can impose death sentences with no right of appeal, makes torture-extracted and hearsay evidence permissible, sanctions indefinite and secret detentions and more.

Cohn asked: "So how unconstitutional is the Military Commissions Act? Let us count the ways. MCA violates the Suspensions Clause of the Constitution by denying non-US citizens (and citizens, too) any meaningful opportunity to challenge the legality of their detention." It also violates Geneva plus the Fifth and Sixth Amendments. Above all, it violates the spirit and letter of the law and a nation claiming a tradition of respecting it. No longer under George Bush, who flouts the law openly, but it happened often earlier as well whenever past Presidents like Adams, Lincoln, Wilson, Franklin Roosevelt, Nixon, Johnson, Reagan and others ignored or twisted the law for political purposes. None, however, did it as brazenly, openly and systematically as George Bush who as chief executive believes the law is what he says it is. And never before was Congress and the courts as willing to go along with him as now.

Cohn quoted a former military linguist saying "A stench of despair hangs over Guantanamo," and one detainee told his lawyer he'd rather die than stay there. Many have tried taking their lives and a few succeeded. The National Lawyers Guild, Association of American Jurists, Amnesty International and other human rights organizations all agree that Guantanamo (and all "black site" and other torture-prison hellholes) are a blight on the soul of America, they should be closed, and all detainees held at them released or charged with criminal offenses "in accordance with international legal norms."

Spying on Americans

Cohn recounted how on December 16, 2005, the New York Times "unleashed a bombshell" its editors knew about a year earlier but suppressed at the request of the administration. It reported "George W. Bush had been secretly spying on Americans without warrants since late 2001. The next day, Bush confirmed that he had authorized the National Security Agency (NSA) 'to intercept the international communications of people with known links to al Queda' and related terrorist organizations." The operation was called the "Terrorist Surveillance Program."

Cohn noted "wiretapping without probable cause or judicial oversight violates both the Foreign Intelligence Surveillance Act (FISA) and the Fourth Amendment." Thousands have been affected by it, and Cohn believes the administration used the program to target its critics. It's a throwback to "the bad old days of FBI Director J. Edgar Hoover" and his domestic spying programs begun in the 1940s or earlier. It was used then, later and now to monitor, threaten and silence Americans (or anyone else) with "unorthodox political views" meaning they disagreed with government policies like McCarthy witch-hunts, racial abuse, the Vietnam war and most everything George Bush does.

The FBI began its COINTELPRO (counterintelligence program) in 1956 to "expose, disrupt, misdirect, discredit and otherwise neutralize" political and activist groups like the American Indian Movement, Black Panthers, Martin Luther King, and Vietnam war protesters. Richard Nixon later used national security wiretaps and illegal break-ins to target his political enemies. He had a long list of them.

Congress responded in 1978 to stop these practices with the Foreign Intelligence Surveillance Act (FISA) "to regulate electronic surveillance (while also) protecting national security." The law established the Foreign Intelligence Surveillance Court (FISC). Its judges are appointed by the Chief Justice of the Supreme Court. They meet in secret "to consider applications for wiretap orders" when government must convince a judge probable cause exists to believe the target in question is a foreign power or its agent. FISA wiretap limitations don't apply for foreign nationals abroad. "Its restrictions are triggered only when the surveillance targets a US citizen or permanent resident or when the surveillance is obtained from a wiretap physically located within the United States. Also, FISA specifically covers warrantless wiretaps during wartime," only for the first 15 days after war is declared, and can't be used against US citizens.

Nothing deters George Bush, his Justice Department and compliant spy agencies. As Cohn put it, he made "and end run around FISA" and now can do it "legally" as of August 5 with more on that below. Earlier in late 2001, he sidelined FISC with a secret executive order establishing his Terrorist Surveillance Program. It authorized NSA to monitor phone and computer communications of Americans in the US at NSA's discretion - in other words, illegal warrantless spying on domestic communications of anyone for any reason, law or no law. Cohn noted Bush (as far as we know) is the first President to defy FISA since its 1978 enactment. He's now set a shameless precedent for others later on.

He also ignores the Fourth Amendment's protection against unreasonable searches and seizure to protect against police state practices. Cohn explained the Supreme Court "consistently declared that a judge must determine whether probable cause exists." George Bush flouts this ruling with impudence and arrogance. It's of no concern to him that the American Bar Association and the National Lawyers Guild declared his warrantless surveillance program violates the law of the land. He believes he's the law and can do what he pleases.

Alberto Gonzales is a war criminal marching in lockstep with his boss and continues to shame the Justice Department he heads. He falsely and criminally maintains Congress' Authorization for the Use of Military Force (AUMF) in September, 2001 provided legal justification for warrentless surveillance outside of FISA. Former Senator Gary Hart called such actions "a repeat of the Nixon years." Back then, he justified it because of civil unrest in protest against the Vietnam war. Today, it's the phony "war on terrorism" and raging ones in Iraq and Afghanistan. Cohn emphasized "Bush has already gone far beyond what the Constitution authorizes, and FISA makes it a crime." At least that was so until August 5.

The Terrorist Surveillance Program isn't the only secret spying the Bush administration authorized, but now it's got a Congress-sanctioned warrantless open field to do it without court oversight at the discretion of the Attorney General (AG) and/or Director of National Intelligence (DNI). Prior to its August recess, Democrats and Republicans cravenly caved to the politics of fear and hastily passed the White House crafted Protect America Act 2007 amending FISA in doublespeak language Orwell would love.

It will supposedly close so-called "communication gaps" but will allow virtual unrestricted mass data-mining monitoring and intercept of domestic and foreign internet, cell phones and other new technology as well as transit international phone call traffic and emails. The Act claims to restrict surveillance to foreign nationals "reasonably believed to be outside the United States" and will sunset in six months unless renewed. In fact, the new law targets everyone including US citizens inside the country if the AG or DNI claim they pose a potential terrorist or national security threat, and no evidence is needed to prove it. Further, in an election year, renewal is absolutely guaranteed, possibly with even harsher provisions added.

In point of fact, this law allows virtual unrestricted warrantless spying targeting anyone for any claimed national security reason. It thus renders any notion of illegal searches and privacy rights null and void. This hellish Act effectively legalizes illegality by Fourth Amendment standards that Patriot Act provisions pretty much swept away earlier. This is how things work in a police state where laws render privacy issues (and all other freedoms) null and void and everyone is under constant surveillance and stripped of their rights.

Even without the new law, however, the administration had in place a menu of past and current programs that combined amount to "big brother" writ large and now is getting larger. In May, 2006, it was learned Verizon Communications, AT & T, and BellSouth provided NSA with telephone and internet communications flowing into and out of the country having nothing to do with national security. Cohn quoted the New York Times reporting a senior government official saying the program confirmed NSA was able to access most all phone calls in the country. It means everyone is being listened to illegally so the spy agency knows everything about us from the health of our family to what toppings we like on our takeout pizza.

Data mining violates the 1986 Stored Communications Act, but there's lots more. The "Bush gang" secretly collects our most personal information from an operation called the Terrorist Finance Tracking System. With no court-approved authorization, they've been accessing records from a huge international database to examine the banking, credit card and other financial transactions of many thousands of Americans in the country. It amounts to a secret end run around bank privacy laws requiring the government to show cause for why these records are relevant to an investigation.

Still more civil liberties have been lost the result of Patriot act justice. It targets anti-war protesters and political activists hostile to Bush administration policies. The new law makes their actions crimes of domestic terrorism when they're only, in fact, expressions of constitutionally guaranteed freedoms, including our most sacred First amendment ones.

Post-9/11, other unconstitutional speech-related monitoring began as well, including the short-lived Terrorism Information and Prevention System (Operation TIPS). The idea was to use civilian informers like postal employees to report "unusual" neighborhood activities, police-state style. The scheme flopped when the postal service refused to be spies.

Then, there was the Pentagon's Total Information Awareness (TIA) renamed Terrorism Information Awareness to monitor anything about anyone under the spurious cover of it relating to "terrorism." TIA came under considerable congressional flack but some or all of its activities continue under new names relating to other Pentagon projects and initiatives so illegal military spying continues unabated.

One such program is called the Threat and Local Observation Notice (TALON) to collect domestic intelligence by amassing a huge database, again spuriously related to "terrorism." It focuses on war protesters targeted by police state monitoring of their constitutional right to freely oppose the nation's illegal wars of aggression the Bush administration says are justified to protect against threats to national security. The Pentagon had second thoughts about it after drawing flack for illegally targeting peace activists. Its spokesperson called the program's results disappointing and doesn't warrant being continued as currently constituted in light of its image in Congress and the media as of last spring.

What's likely is that TALON's activities are now rebranded and continuing like all the other illegal intrusive spying known about or still secret. They include those run by the Pentagon now authorized to operate freely on US soil in the aftermath of last year's Defense Authorization Act revising the 1807 Insurrection Act and 1887 Posse Comitas. The change gives the President the right to deploy the military on US soil in the name of national security or "war on terrorism." It means, for the first time ever, federal troops can legally operate inside the country any time George Bush gives the order.

It gets even worse. On May 30, 2002, John Ashcroft and FBI Director Robert Mueller revealed sweeping new surveillance powers for this agency with a wide latitude to spy more effectively on law-abiding US citizens. The new "diktat" lets the FBI conduct investigations up to a year without having to show suspicion of criminal activity. They can target anyone they choose, peering anywhere they wish into our personal lives, that's none of their business, to document trips we take, books and publications we read, internet sites visited, political and charitable contributions made, meetings attended and more. Anyone seen criticizing the government is fair game, especially if it relates to the Iraq and Afghan wars.

Another new data mining program is being used by police and federal authorities in some states. It's called MATRIX standing for the Multistate Anti-Terrorism Exchange Program. An ACLU 2004 White Paper explained "it involves not the attempt to learn more facts about known suspects, but (is a form of) mass scrutiny of the lives and activities of innocent people.... to see whether each of them shows any signs of being a terrorist or other (type) criminal."

MATRIX creates a "terrorism quotient" or High Terrorist Factor (HTF) measuring the likelihood individuals in the database are terrorists. The ACLU believes the program is "an effort to recreate the discredited Total Information Awareness (TIA) data mining program at the state level." It shows the federal authorities are deep into efforts at all levels to spy on US citizens. MATRIX is another unprecedented effort to do it within or outside the law and constitutes a massive invasion of privacy and violation of our rights in a free society, along with all other post-9/11 unconstitutional spying invasions by any of the nation's 16 spy agencies.

The Constitution doesn't specifically mention a right to privacy, but Supreme Court decisions affirmed it over the years as a fundamental human right. As such, it's protected under the Ninth Amendment as well as the Third prohibiting the quartering of troops in homes, the Fourth affording protection from unreasonable searches and seizures, and the Fifth protecting against self-incrimination. MATRIX and other intrusions enhance Patriot Act powers allowing them to persist outside of congressional oversight and judicial review. It's another part of the overall scheme to subvert the rule of law under George Bush police state justice.

It advanced another step on July 17, after "Cowboy Republic" was published, when George Bush issued another of his many presidential "one-man" decrees. It was titled "Executive Order: Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq." This unconstitutional action effectively criminalizes dissent and shifts the nation another perilous step closer to tyranny. It targets the anti-war movement in an effort to further weaken and defuse it. It also adds another unconstitutional layer onto the repressive Patriot Act author, analyst and activist Jennifer Van Bergen says has been built on to "establish a permanent framework for repression of free speech and dissent." All "activists (now) = terrorists" as the administration cracks down hard to control, suppress and remove all opposition.

In his important and revealing 1980 book "Cracks in the Constitution," Ferdinand Lundberg stated the US Constitution "nowhere implicitly or explicitly gives the President (the) power (to make) new law" by issuing "one-man", often far-reaching" executive order decrees. But, Lundberg explained "the President in the American constitutional system is very much a de facto king....(he is) by far the most powerful formally constituted political officer on earth." He has "vast power (and) stands in a position midway between a collective executive (like in the UK) and an absolute dictator."

George Bush proves Lundberg was right and then some. He's taken full advantage, within and outside the law, of what Lundberg called the "essence of presidential power....in a single (vaguely worded) sentence." Specifically, Article II, Section 1 reads: "The executive power shall be vested in a President of the United States of America." That simple statement, easily passed over and misunderstood, means the near-limitless power of this office is "concentrated in the hands of one man" free to abuse it if he chooses. Article II, Section 3 then almost nonchalantly adds: "The President shall take care that the laws be faithfully executed" while not saying Presidents are virtually empowered to make laws as well as execute them although nothing in the Constitution permits this practice.

Presidents also have no authority to stifle dissent, but that hasn't deterred George Bush. Post-9/11, former press secretary Ari Fleischer laid out the new "war on terrorism" rules of engagement saying Americans "need to watch what they say, watch what they do." It includes showing up for anti-war rallies and protesting military recruitment. They're now considered "political terrorist activit(ies)." We're being watched if we go and subject to future recrimination at the whim of a rogue President and criminal administration meting out police state justice.

Refusing to Execute the Law

Cohn quoted James Madison from the Federalist Papers writing: "The preservation of liberty requires that the three great departments of power should be separate and distinct. The accumulation of all powers, legislative, executive and judiciary, in the same hands... may justly be pronounced the very definition of tyranny." George Bush proves the truth of Madison's words. Since taking office, he systematically sought to usurp all governing powers in his hands under his unconstitutional notion of a "unitary executive" with the right to claim the law is what he says it is. It isn't, never was, and never will be under a system of constitutional law George Bush doesn't recognize in his continued efforts to flout it recklessly.

Cohn stated: George Bush "has....asserted unparalleled executive power by putting his stamp of supremacy on more than one thousand provisions of law (more than all past Presidents combined) enacted by Congress." He "quietly attached 147 'signing statements' to 1132 (law provisions) passed by Congress" even though nothing in the Constitution permits this practice, and the Supreme Court banned line-item vetoes. He abused his power to rewrite laws to conform to administration policies and wishes, and Congress and the courts have done nothing to stop him.

Cohn gave some examples of this practice. "He issued his most notorious one" in December, 2005 after signing the Detainee Treatment Act that prohibits subjecting prisoners to cruel, inhuman and degrading treatment and punishment. The statement attached declared the administration would interpret the law "in a manner consistent with the constitutional authority of the President (as a "unitary executive") and as Commander in Chief and consistent with the constitutional limitations on the judicial power." Cohn's translation: George Bush will do as he pleases, law or no law. He kept his word in spite of the Supreme Court's ruling in Hamdan v. Rumsfeld affirming habeas petitions of Guantanamo detainees. "His gang continues" torturing prisoners in violation of the Detainee Treatment Act and High Court ruling.

Another egregious example followed Patriot Act II (the renewal of the Patriot Act in even harsher form in spite of several new provisions regarding congressional oversight). George Bush's signing statement reserved for him the right to refuse to give Congress reports it mandated just as he did regarding previous laws. Contempt for the law, arrogance and extreme secrecy have been hallmarks of his administration. This is one of the many ways he shows it.

Another one came after Congress enacted a 2003 law requiring the Inspector General in Iraq inform Congress whenever officials won't cooperate with its investigations. Bush's signing statement said the IG had no obligation to keep Congress informed. Other signing statements flouted laws that:

-- Ban US combat troops being used against Colombian rebels,

-- Forbid uses of military intelligence that violate the Fourth Amendment,

-- Require retraining prison guards under Geneva Convention standards of humane treatment,

-- Mandate Iraq civil contractors undergo background checks,

-- Prohibit firing or punishing DOE and NRC whistle-blowers,

-- Require more minorities be recruited for Foreign Service and Civil Service jobs, and much more.

Cohn noted that the Task Force on Presidential Signing Statements and the Separation of Powers Doctrine of the American Bar Association (ABA) condemned the administration's use of signing statements as "contrary to the rule of law and our constitutional system of separation of powers." ABA president Michael Greco added: "We will be close to a constitutional crisis if this issue....is left unchecked." Wharton School of the University of Pennsylvania professor emeritus Edward Herman warned about the same thing saying: "The brazeness of Bush's use of (this practice) is remarkable. But even more remarkable (is that) it fails to elicit sustained criticism and outrage (anywhere, and as a result) We are in deep trouble (and getting increasingly deeper)."

The law of the land means nothing to George Bush and his band of rogues. He keeps finding new ways to subvert it such as unilaterally abrogating treaties and "courting nuclear disaster." Cohn noted he "thumbed his nose at our obligations under the 1970 Nuclear Non-Proliferation Treaty (NPT)" that's the "supreme law of the land under the Supremacy Clause of the Constitution." His abuses of power also include:

-- claiming the right to develop new type nuclear weapons,

-- refusing to eliminate present ones,

-- reserving the right to test new nuclear weapons that will release radiation into the atmosphere,

-- abrogating the Anti-Ballistic Missile Treaty,

-- rescinding the subverting the Biological and Toxic Weapons Convention,

-- refusing to consider a Fissile Material Cutoff Treaty that would prevent more nuclear bombs being added to present stockpiles,

-- provokingly challenging Russia and China by planning to situate misnamed missile defense systems (intended for offense, not defense) near their borders to give the US a nuclear first-strike advantage,

-- spending more on the military than all other nations combined with more large increases planned,

-- being the only nation opposed to the 2001 UN Agreement to Curb the International Flow of Small Arms,

-- Refusing to join 155 other countries as of February, 2007 in signing the 1997 Land Mine Treaty,

-- supplying rogue states with sophisticated weapons likely to be used aggressively (and $63 billion more of them earmarked for selected Middle East ones), and

-- claiming the unilateral right to wage preventive wars of aggression under the Orwellian doctrine of "anticipatory self-defense" using first-strike nuclear weapons.

These are the reckless acts of a rogue President claiming to be above the law. Cohn has other ideas stating "The Constitution is unequivocal. It is George W. Bush's job to enforce, not to rewrite, the laws Congress has passed." Thomas Jefferson was also unequivocal in what he wrote in the Declaration of Independence:
"That to secure these (unalienable) rights (of Life, Liberty and the Pursuit of Happiness) Governments are instituted among Men, deriving their powers from the consent of the governed, - That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government (for) their Safety and Happiness."

Conclusion

In response to growing public opposition to the Iraq war, George Bush committed 50,000 more troops with no set timetable for their drawdown or withdrawal. Even worse, he stepped up rhetoric against Iran, pointing to a possible enlargement of the Middle East conflict that will be catastrophic for the region and US if it happens.

The Iraq war alone is an illegal act of aggression and supreme international crime against peace. Along with growing numbers in the public, those serving in the military have a duty to disobey orders that violate international and constitutional law. In addition, the Democrat-led Congress is obligated to "convene a nonpartisan independent inquiry" to investigate prewar manipulated and distorted intelligence. Cohn believes high government officials should be held to account up to and especially George Bush and Dick Cheney.

She noted that DOJ regulations "call for the appointment of an outside special counsel when (1) a criminal investigation of a person or matter is warranted, (2) the investigation or prosecution of that person or matter (within DOJ) would present a conflict of interest for the Department," and (3) it's in the public interest to appoint an outside Special Counsel because a criminal investigation of the administration is essential.

From what's already known, the evidence pointing to criminal wrongdoing (recounted above) is overwhelming and demands action even though leading Democrats are conspiratorially involved and should be held to account as well. Those found guilty (in both parties)should be prosecuted. If US courts opt out, the International Criminal Court (ICC) in the Hague should step in and act as it's mandated to do. Although the US is not a signatory, it should move ahead anyway in the name of humanity and grave threat it faces if it won't. That's the current condition and danger. The world can't wait for niceties or hoped for change that won't happen unless forced.

The ICC was established in 2002 (by the 1998 Rome Statute) as a permanent world tribunal to prosecute individuals for genocide, war crimes and crimes against humanity. They were defined by the 1945 Nuremberg Charter drafted by the US and its main WW II victorious allies to try Nazi war criminals. The court was mandated to step in and adjudicate in the kinds of high US officials' law violations now in question, demanding redress. With world approval, it should act in defiance of the American Servicemembers Protection Act of 2002 - aka the Hague Invasion Act authorizing the President to send in the Marines to rescue any American the ICC detains. He'll be hard-pressed to do it if he and Dick Cheney are shackled inside ICC cells where they belong, and not a moment too soon.

Cohn mentioned other prosecutorial options as well. Under the principle of "universal jurisdiction," every country has the authority to charge and prosecute anyone committing grievous crimes of war or against humanity. None so far have acted, it's unlikely a single one will be so bold, and that's why the ICC was established to act for them.

The shameless Democrat-led 110th Congress has defied the electorate and ignored its call for action as well. The public demands what it has constitutional authority to do - cut off all funding for two illegal wars of aggression and end them. In defiance, Congress continues funding open-ended wars with only disingenuous lip service paid to troop drawdowns and withdrawals. Further, the Bush administration continues building a case for war against Iran, with no just cause or legal standing for it, and Democrats are rolling over in support shamelessly and dangerously.

Cohn ends her important book with an impassioned plea to "stop the Cowboy Republicans" while there's still time. She points out what's needed and clear. In the 1970s, Congress only ended the Vietnam war after "tens of thousands of people marched in the streets" against it, and a near-insurrection was seen possible inside the conscript military. The anti-war movement today is large but tepid by comparison, and the military is all-volunteer making the job harder.

Nonetheless, the need is urgent as the fate of a shaky republic and all humanity hang in the balance. "Bush's hubris affects us all," Cohn noted ominously. A way must be found "to demand truth, justice, and accountability from the Cowboy Republicans....insisting the Bush gang be held to account for its high crimes and misdemeanors." People must demand an end to war and occupation and act to prevent another one. What better reason is there than "Our lives....those of our children (and all humanity) depend on it."

Stephen Lendman lives in Chicago lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also, visit his blog site at sjlendman.blogspot.com and listen to the Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time.

Monday, August 06, 2007

Reviewing Ferdinand Lundberg's "Cracks in the Constitution"

Reviewing Ferdinand Lundberg's "Cracks in the Constitution" - by Stephen Lendman

Ferdinand Lundberg (1905 - 1995) was a 20th century economist, journalist, historian and author of such books as The Rich and the Super-Rich: A Study in the Power of Money Today; The Myth of Democracy; Politicians and Other Scoundrels; and the subject of this review - Cracks in the Constitution.

Lundberg's book was published twenty-seven years ago, yet remains as powerfully important and relevant today as then. Simply put, the book is a blockbuster. It's must reading to learn what schools to the highest levels never teach about the nation's most important document that lays out the fundamental law of the land in its Preamble, Seven Articles, Bill of Rights, and 17 other Amendments. Lundberg deconstructs it in depth, separating myth from reality about what he called "the great totempole of American society."

He does it in 10 exquisitely written chapters with examples and detail galore to drive home his key message that our most sacred of all documents is flawed. It was crafted by 55 mostly ordinary but wealthy self-serving "wheeler dealers" (among whom only 39 signed), and the result we got and now live with falls far short of the "Rock of Ages" it's cracked up to be. That notion is pure myth. This review covers in detail how Lundberg smashed it in each chapter.

The Sacred Constitution

Lundberg quickly transfixes his readers by disabusing them of notions commonly held. Despite long-held beliefs, the Constitution is no "masterpiece of political architecture." It falls far short of "one great apotheosis (bathed) in quasi-religious light." The finished product was a "closed labyrinthine affair," not an "open" constitution like the British model. It was the product of duplicitous politicians and their close friends scheming to cut the best deals for themselves by leaving out the great majority of others who didn't matter.

The myths we learned in school and through the dominant media are legion, long-standing and widely held among the educated classes. They and most others believe the framers crafted a Constitution that "powerfully restrained and fettered" the federal government and created "a limited government (or a) government of limited powers." It's simply not so because through the power of the chief executive it can do "whatever it is from time to time" it wishes. In that respect, it's no more precise and binding than The Ten Commandments the Judaic and Christian worlds violate freely and willfully all the time. Even so-called "born-again" types, like the current President, do it, along with Popes, past and present, and the former Israeli Sephardi chief rabbi, Mordechai Eliyahu, who advocates mass killing by carpet bombing Gaza to save Jewish lives.

The "supreme Law of the Land" here deters no President or sitting government from doing as they wish, law or no law. The Constitution is easily ignored with impunity by popular or unpopular governments doing as they please and inventing reasons as justification. Lundberg is firm in debunking the notion that America is a government of laws, not men. It's "palpable nonsense of the highest order," he said. Governments enacting laws are composed of men who lie, connive, misinterpret and pretty much operate ad libitum discharging their duties as they see fit for their own self-interest.

It was no different in 1787 when 55 delegates (privileged all) assembled for four months in the same Philadelphia State House, where the Declaration of Independence was signed 11 years earlier, to rework the Articles of Confederation into a Constitution that would last into "remote futurity," as long as possible, or until others later changed it. None of them were happy with the finished product but felt it was the best one possible under the circumstances and better than nothing at all.

The document is "crisply worded" and can easily be read in 20 to 30 minutes and just as easily be totally misunderstood. The sole myth in it is stated in its opening Preamble words: "We the people of the United States....do ordain and establish this Constitution for the United States of America." In fact, "the people" nowhere entered the process, then or since.

At its beginning, "the people" who mattered were established white male property owning delegates and members of state ratifying conventions who rammed the ratification process through, by fair or foul means, in the face of a "largely indifferent and uncomprehending populace" left out entirely. They were elected to do it by eligible and interested while males comprising only from 12.5 - 15.5% of the electorate at the time. Women, blacks, Indians and children couldn't vote and many or most qualified voters didn't bother to and still don't. The process, and what it produced, showed "Democracy operatively is little more than a fantasy."

The American revolution was nothing more than secession from the British empire changing very little with one-third of the colonists favoring it (not upper classes), one-third opposed (mainly upper classes) and another third indifferent to the whole business. From then to now, the country is no nearer "government by the people" than under monarchal or autocratic rule. The latter types rule by application or threat of force whereas sovereign people are manipulated by other means with naked force held in reserve if needed.

Lundberg explained the minimum function of government, ours or others, should be to insure the public welfare is being broadly served. It's stated in the Preamble and Article I, Section 8 that "The Congress shall have power to....provide for....(the) general welfare of the United States" - the so-called welfare clause. Lundberg let scholar Herman Finer (with more detail on his ideas below) dispel the notion from the constitutional flaws he found and some of the many "social and political evils" he recounted as a result through the middle 20th century decades - rampant crime, unsafe streets, lack of justice, political corruption, dishonest police, racketeering labor officials, corporate fraud in pursuit of profits, raging unresolved social problems and lots more. Only government can address these issues and unless it does successfully it fails. Our is a long history of failure overall with only feeble attempts to fix things.

Lundberg reviewed popular misconceptions about the Constitution saying so many are embedded in the American psyche it's hard knowing where to begin. He noted the document is called "The Living Constitution" saying, in fact, it's "whatever government does or does not do" or uses in whatever way it wishes. The Constitution defines itself as the "supreme Law of the Land" in Article VI, Section 2 which it is and includes all amendments, enacted statutes and treaties made with the concurrence (not ratification) of the Senate. The people are left out of the process entirely with Lundberg saying "government of the people, by the people and for the people" is a "nonexistent entity. The people don't govern either directly or through 'representatives.' The people are governed."

In sum, although the Constitution served many of the purposes its designers and supporters envisioned, in light of the majority populace's great expectations of it, "it has been, quite plainly, a huge flop." That's made clear below.

"We the People"

Lundberg destroys the romanticism and enthusiasm felt today about the Constitution and the revolt against Great Britain preceding it. He began by reviewing the establishment of state constitutions at the time and the enactment of the Articles of Confederation adopted by the Second Continental Congress November 15, 1777 with final ratification March 1, 1781. None of these events had electoral sanction. "They were strictly coup d'etat affairs, run by small groups of self-styled patriots many of whom bettered their personal economic positions significantly" from the revolution and events before and after it took place. Despite what's commonly taught in schools, most people opposed the Constitution when it was ratified. So by getting it done anyway, the framers (with the conservative Federalists spearheading the effort) went against the will of the people they ignored and disdained.

It wasn't easy, though, as only by promising amendments did it happen. The anti-Federalist opposition demanded and got the "oft-hymned" first ten amendments, commonly known as the Bill of Rights. In fact, they "made no great difference," and did little to dilute the 1787 document. More on that below.

Lundberg explained that most anti-Federalists weren't particularly happy either with the Articles of Confederation or the Constitution. These men were mostly privileged property owners (all white, of course) squabbling over the means to get pretty similar ends and having a generally hostile attitude about the majority population overall. In other words, everyone was not considered "We the people," which is how radical English Whigs felt and whose traditions colonists adopted. "The illiterate and underprivileged (elements) were not much considered" with the "people" again being the privileged male property owners in charge of everything and out only for their own self-interest.

Lundberg cited voting patterns earlier, up to his time, and clearly now as well, to explain how people are left out of the political process. Whether franchised or not, most don't vote in presidential elections and even fewer show up for congressional, state and local ones. It indicates the will of the people needs considerable qualifying because most of them aren't interested, don't want to bother, don't think it matters, don't understand the whole process, and decide to opt out and act like nothing's going on. "Although repugnant to ideologists of democracy," Lundberg stated, "this conclusion is quite true."

In sum, the relevance of this to the Constitution is that its opening words are meaningless window dressing. They neither add nor detract from the document which served as a "screen and launching pad for practically autonomous, freely improvising politicians (like any others in the world)....the gentry....sustained (in whatever their endeavors were) by the constitutional structure" they created for their own self-serving purposes.

What the Framers Thought

This section covers who these men were below as well as more about them in the section to follow. Here, first off, the record needs to be set straight about what these very ordinary men (contrary to popularized myth about them) thought about their creation we extoll today like it came down from Mt. Sinai. In fact, it was the result of wheeling and dealing in likely smoke-filled rooms the way deals are cut today with lots of real and figurative smoke to go along with the usual mirrors. When they finished in September, 1787, there was no joy in Philadelphia. The framers disliked their creation, some could barely tolerate it, yet most signed it.

They understood its defects, that it was full of holes, thought it was the best they could do under the circumstances, felt it was a mess, but, nonetheless, believed they could live with it for the time being, hoping it wouldn't come back to bite them. Lundberg said they likely "kept their fingers crossed." One other thing was clear, though, despite "crowd-titillating campaign oratory" about their creation ever since. Not a single framer suggested "a sheltered haven was being prepared for the innumerable heavily laden, bedraggled, scrofulous and oppressed of the earth." On the contrary, they intended to keep them that way showing not a lot is fundamentally different then than now, and the so-called founders were a pretty devious bunch, not the noble characters we've been taught to believe.

As already explained, the deal got done with the usual kinds of wheeling and dealing, and, in the end, a lot of opponents being won over by agreeing to tack on the so-called Bill of Rights that was deliberately left out at first. The dominant elements behind the convention were what today are called nationalists. More precisely, they were "centralizers who were continental and global in their thinking." The opposition consisted of "localists," later called "states-righters," who preferred a decentralized government. The "centralizers" wanted a single or central national capital run by superior people by their definition - the rich and better-connected regardless of ability. Men like John Adams and John Jay (the first High Court chief justice) felt government should be run, in Adams' words, by "the rich, the well born, and the able." There was no disagreement on that notion.

There were no populists in the bunch, no anti-property party, and even the most vocal civil libertarians, like Jefferson and George Mason, were slave-owners. Washington, for his part, contributed no pet constitutional ideas other than wanting to protect the new nation from drifting toward disunion which, in fact, happened with the outbreak of the Civil War in 1861. Lundberg described him as "the very top dog of the Philadelphia accouchement (the constitutional birthing process)." He understood the key reason for adopting a flawed document, no matter how bad it was or how the framers felt about it. Accepting it was the way to prevent disunion and resulting confusion that might have prevailed if public consideration entered the equation to become accepted policy and law.

Conflicting ideas of concern at the time visualized three central governments consisting of the New England states, middle Atlantic ones, and those in the South with likely new entries to follow in the West. The framers worried this arrangement might cause endless bickering and wars as well as rivalrous agreements and arrangements with other countries. In one stroke, the Constitution produced a united front against an ever-encroaching Europe and internal struggles.

Lundberg spent much time on who the founders were this review can only touch on. It's enough just to put a few faces on a group of crass opportunists who today are practically ranked along side the Apostles. But who's to say those few were any better than others of their day the way myths are constructed and passed on through the ages unchallenged in mainstream thinking. And don't forget that, in his first term, George Bush might have been aiming for sainthood by claiming he got his orders directly from God who told him to "strike at Al-Queda....and then.... to strike at Saddam." Even the framers didn't claim that type heavenly connection.

They did have Lundberg's focus beginning with Alexander Hamilton, Washington's wartime aide-de-camp, first Secretary of the Treasury and acknowledged leader of the Federalists. Here's what this noted man thought of the Constitution in 1802. In a letter, he called it "a shilly shally thing of mere milk and water (and) a frail and worthless document." This is from the man, more than any other in Philadelphia, who was its most articulate and passionate champion. Franklin, too, had doubts as the grand old man, but mere enfeebled figurehead at the convention, who also signed the final document. He was against two separate chambers, disapproved of some of the articles and wanted others that weren't included.

Then there's James Madison miscalled "The Father of the Constitution," which he expressly repudiated and a year later wrote "I am not of the number if there be any such, who think the Constitution lately adopted a faultless work.....(It's) the best that could be obtained from the jarring interests of the states....Something, anything, was better than nothing." Madison's disaffection went even further, in fact. At the convention, he was an ardent "centralizer," but 10 years later he reversed himself by aligning with those wanting to recapture more state power. He also spent most of his life disagreeing with the way the document he helped write was used.

Lundberg covered a few other framers most people know little or nothing about but played their part along with the better known ones. They included men like Nicholas Gilman from New Hampshire, William Pierce and William Few from Georgia, Pierce Butler and Charles Pinckney from South Carolina, Robert Morris, Gouverneur Morris (no relation) and James Wilson from Pennsylvania, Jonathan Dayton from New Jersey, and James McHenry from Maryland.

Of the total 55 delegates attending, 39 signed and 16 didn't, but doing it or not was just a pro forma exercise as only the states had power to accept or reject it. None of the framers believed the Constitution was the glorious achievement people ever since were led to believe - quite the opposite, in fact, but most still went along with it as better than nothing. The nation's second and third Presidents, Adams and Jefferson, were abroad and didn't attend the convention although Adams was considered the leading constitutional theorist at the time. His views had weight and were strong ones. Lundberg noted for the rest of his life until 1826 he consistently criticized the document in private correspondence.

Jefferson overall was just as unhappy. Until it was added, he objected to the omission of a Bill of Rights. He also disliked the lack of any requirements for rotation in office, especially the office of the presidency he wished to be ineligible for a succeeding term. In 1801, he was involved with others proposing a menu of changes to strengthen a document he believed was flawed. He also didn't think any constitution could survive the test of time, unchanged forever, able to meet all legitimate needs, and as a consequence wanted a new convention every 20 years to update things and fix obvious problems.

Lundberg felt Jefferson and Adams' main objection was they had no part in writing it or were even consulted on what should go in it. They had a point. Adams, as noted, was the leading constitutional theorist of the time and Jefferson (in Lundberg's view) was the most consummate politician in the nation's history, but by no means its best President.

The convention ended September 17, 1787 "in an atmosphere verging on glumness." Delegates signing it were just witnesses to the actions of state delegations, not as individual endorsers, and despite their public approval, nearly all had "inner qualms." James Monroe from Virginia, a future President, was one of them. He voted nay with 15 others that included important figures like George Mason, Elbridge Gerry and Edmund Randolph.

Southern delegates were won over for ratification by strengthening chattel slavery. The Constitution forbade the federal government from emancipating slaves until Lincoln acted in a meaningless 1862 politically motivated Executive Order. It wasn't until Congress passed the 13th, 14th and 15th amendments, and enough states ratified them, that the law changed freeing the slaves and giving them nominal rights they never, in fact, had in the South at least for another 100 years. Lundberg noted the "slavocracy was not terminated....for moral reasons; it committed suicide for political and economic reasons, blinded by simple greed and vaingloriousness, and long after slavery was abolished in most places elsewhere."

Who the Framers Were

Lundberg asked: "Who were these men about whom so many (unjustifiably) have rhapsodized? Fifty-five in total showed up in Philadelphia in 1787 out of 74 authorized by state legislatures. A fourth of them stayed only briefly, another quarter checked in and out like tourists, and no more than five men carried most of the discussion with seven others playing "fitful" supporting roles.

Further, they didn't, in fact, come to write a new constitution. They were congressionally authorized only to propose amendments to the prevailing Articles of Confederation. Little did they all know in May what would emerge in September, or maybe the ones who counted most did.

Of the 19 non-attending delegates, 11 wanted nothing to do with the affair, were opposed to it, distrusted it, and thought it rigged from the start. The other eight had various excuses - illness (political or real), focused at home with other business, not having their travel expenses covered, and reluctant to make such a long trip to be away from home and hearth for months.

Of those showing up, 33 were lawyers, 44 present or past members of Congress, 46 had political positions at home, including seven as former governors and five high state judges. These were men of note and economic means who promoted their own financial interests and parallel activity in government. In a word, they were movers and shakers or as Lundberg called them - "wheeler dealers."

He described the group as a "gathering of the rich, the well-born and, here and there, the able (with that quality being the exception)." Washington and Robert Morris were reputed to be the richest men in the country with property holdings in most cases being their main component of wealth at the time along with slaveholdings on it. Directly or indirectly as lawyers or principals, these men were an assemblage of "planters, bankers, merchants, ship-owners, slave-traders, smugglers, privateers, money-lenders, investors, and speculators in land and securities" - essentially a group of powerful figures not much different from their counterparts today. With a few exceptions, Lundberg said they'd now be called a "Wall Street crowd."

In their mind, "The clear aim of the Constitution was to launch a system that would protect, and enable to flourish, the general interests there represented." With Great Britain removed, a vacuum was created. The Constitution, with a new government, was created to fill it restoring the same essential British commercial and financial system under new management, or as the French would say, everything changed yet everything stayed the same. Republican government simply removed British monarchal wrappings to operate pretty much the same way. Lundberg quoted Daniel Leonard saying "Never in history had there been so much rebellion with so little real cause" and so little change following it. As for the ingredients of the Constitution, Lundberg explained nearly all of them could have been "stamped with the benchmark 'Originated in England.' Only the mixture was different."

Further, 27 delegates were future members of Congress, two were future Presidents, one a future Vice-President, one a Speaker of the House, and five future High Court justices. They produced a Constitution generated along predetermined lines by the government itself by "a small self-selected elite at the center of government affairs." They did it in deliberately general, vague, ambiguous language, the product of consummate self-serving insiders. The "people" were nowhere in sight then or for the later future amendment ratifications, all of which were done solely by similar-minded self-serving later officials for their own political purposes. It's always been that way from the beginning, of course, and is strikingly so today.

Lundberg then reviewed the political background and record of the delegates starting off with the elder statesman in Philadelphia, Benjamin Franklin, the wisest of the bunch. In 1787, he was an octogenarian, attended as a mere figurehead, signed the final document, but was too enfeebled to address the convention at its end, so he enlisted a friend to read his rather notable and prescient remarks to the others saying:

"I agree to this Constitution with all its faults....I think a General Government (is) necessary for us (and) may be a blessing....if well-administered; (I "farther" believe that's likely) for a Course of Years (but) can only end in Despotism as other Forms have done before it, when the People shall have become so corrupted as to need Despotic Government, being incapable of any other." Imagine such a dark prophecy at the nation's birth by a man who never met George Bush but was wise enough to know he'd arrive sooner or later. Franklin today would surely say "I warned you, didn't I."

Other notable signers were less insightful, or if they were, didn't let on. Two of them, John Dickinson and William Johnson were members of the 1765 Stamp Act Congress. Six others were members of the mainly conservative First Continental Congress of 1774 - Thomas Mifflin, Edmund Randolph, George Read, John Rutledge, Roger Sherman, and George Washington.

Other important attendees were Elbridge Gerry, Roger Sherman, George Mason, John Langdon, Robert Morris, Gouverneur Morris (no relation) and William Livingston. Lundberg called Langdon, Livingston, Randolph, Rutledge and R. Morris political power bosses or power-brokers of their day, and Robert Morris was known to his friends and enemies as the "Great Man." He was the unmatched financial giant of the era with Lundberg saying "his brain would have made two of Hamilton" and that his economic and political power at the time were unrivaled matching that of the House of Morgan in the early 20th century combined with New York's Tammany Hall.

According to Lundberg, however, this was no "all-star political team" compared to other more distinguished figures not there - Jefferson, John and Sam Adams, John Jay, John Hancock, Thomas Paine, Benjamin Rush, Paul Revere, John Paul Jones, Patrick Henry and many others. Apart from two notables, Washington and Franklin, as well as Robert Morris, few later became prominent nationally. In 1787, Madison and Hamilton (Washington proteges) were virtual unknowns.

Lundberg noted nothing on record shows this assemblage to have been extraordinarily learned, profound in their thinking or even unusually capable. Only 25 attended college, and "the one man who held the convention together by the mere force of his presence"....Washington, never got beyond the fifth grade. Franklin was mostly self-taught and Hamilton was a college dropout his first year. Robert Morris, the JP Morgan of his day, and George Mason also never attended college. Of the 25 college attendees, only Madison, Wilson and G. Morris were contributors of note.

In point of fact, colleges in those days were quite rudimentary and graduated students at a much earlier age, often as young as 16, and a bright student could master the law for a degree in a matter of weeks the way Hamilton did. The same was true in England at the time with Oxford and Cambridge not then considered distinguished educational centers as they are now.

Most of the attending delegates also had military backgrounds, but writing about them kept that information secret. Lundberg stressed it saying "the gathering took on the complexion of the general staff of the war of the revolution." Why not, the boss himself was there, Washington, along with his leading officers. In all, 27 delegates served under him in the war. He knew them, most of the others, and all of them stood in awe of him as a larger than life figure. He was "always the nonpareil," assured he'd be the new nation's uncontested first president. He had no party affiliation, ran unopposed twice and got all the votes for two terms in a process more like coronations than elections.

He and the other delegates came to Philadelphia, assembled, did their work and went home in many cases to pursue "their eclipse." Lundberg explained "As a collection of supposedly highly sagacious men, the post-convention careers of the framers raise a big question mark." Ten went bankrupt or became broke, several were involved in financial scandals, two died in duels, one became a shattered drunkard, two "flittered" with treason, one was expelled from the Senate, one went mad, others quarreled bitterly among themselves about politics and interpreting the document they created, and most switched political sides for convenience in their subsequent quests for office. Washington himself, likely died from medical malpractice, the victim of a bloodletting procedure, after he took ill, when he needed all he had.

Other framers began dying off as well, a number of them right after the convention and at ages considered very young today for some. Robert (JP Morgan) Morris went bankrupt speculating in public lands and securities, owed millions as a result, served three and a half ignominious years in debtors' prison, and died broke in 1806. Other framers also speculated and lost heavily in their financial dealings.

Hamilton was one of the few Philadelphia delegates to achieve a notable post-convention record as Washington's Secretary of the Treasury and Federalist Party leader. Noteworthy as well was Gouverneur Morris, no relation to Robert. Finally, there was James Madison who was neither the Constitution's father or its indispensable or principle source. He, in fact, had no original or unique ideas to bring to the convention. In this respect, he was like all the others.

Madison did perform a hugely important function as an "amanuensis," dutifully and painstakingly recording the convention proceedings in what historians today call an accurate and complete stenographic record, the best available. It was not until 1840 that it became public after Congress bought it from his estate. He documented what Lundberg called "startling" - that the convention delegates were "a group of men intent upon securing various special economic interests" and weren't the "philosophically detached cogitators they had been held up in propaganda to be."

Madison's report shattered the view that these men came together to devise the best possible government. From the start, they knew what they wanted (at least the key ones there) and set about getting it. Madison was also a powerful advocate on the convention floor of widely discussed views. Unlike the others, he had no considerable property or means, but he lived to age 85, outlasted all the other framers, and served as the nation's fourth President. In total, eight delegates at most can be considered weighty. The rest were "routine or parochial or both," and that conclusion is astounding for a group of 55 leading men of the day who "participated in the formulation of a reputed deathless document" and are revered in classrooms and society as larger-than-life icons.

The Gorgeous Convention

Lundberg stared off saying "The constitutional convention of 1787, an historical event of first-class importance, was itself an entirely routine, utterly uninspiring political caucus....it produced absolutely no prodigies of statecraft, no wonders of political (judgment), no vaulting philosophies, no Promethean vistas." In point of fact, as already stressed and repeated, what happened contradicts all we've been "indoctrinated from ears to toes" to believe that's pure nonsense. Lundberg called the main fantasy the popular conception that the Constitution is "a document of salvation....a magic talisman." The central achievement of the convention, and a big one, (at least until 1861) was the cobbling together of disparate and squabbling states into a union that held together tenuously for over seven decades but not actually until Appomattox "at bayonet point."

As mentioned above, the delegates came to Philadelphia merely to amend the unwieldy Articles of Confederation so what it did was, "strictly viewed, illegal." The finished product emerged as an amalgam of the existing Maryland, New York and Massachusetts constitutions dating respectively from 1776, 1777 and 1790, the latter one written almost entirely by John Adams in a few days. Even though he was abroad in London at the time, the finished Constitution was largely the product of his earlier work. Of those attending, no individual theorist dominated proceedings, but two dominant personalities held things together as its "living core." Without the force of their presence, Lundberg explained, the whole process "would almost surely have foundered."

Those men were George Washington, the larger-than- life victorious general of the revolution, and "Great Man" Robert Morris, the JP Morgan-type figure who later went bust because even financial whizards can succumb to excess greed. Gouverneur Morris also was prominent in the proceedings while Madison and Hamilton, as already explained, were virtual unknowns.

Lundberg called the convention "very much a prefabricated group affair" with internal differences over concentrating power in the President or Congress. Then, there were the "tight nationalizers, those generally wanting a national government, and lastly in the minority "states-righters" believing no state power should be surrendered to a federal authority. "As for flat-out democrats," said Lundberg, "there were none in sight." In terms of what they achieved, he called it "Old Wine in a Fancy New Bottle" with a new name under new management. The purpose of the convention was to gain formal approval for what the leading power figures wanted and then get their creation rammed through the state ratification process to make it the law of the land. On that score, and after much wheeling and dealing, they achieved mightily.

The convention began in May, went on through three phases for 120 days, and concluded in September after dozens of parliamentary-type votes to postpone, reconsider, amend, etc. with a document produced and turned over to a committee of detail in late July. The final phase ran from August 6 to September 17, nine states were needed for ratification with the larger, more populous ones, granting concessions to the small ones to win the day.

Several scenarios or plans were proposed, one of which was the Virginia Plan envisioning a central national government with a bicameral legislature that, of course, was adopted. All the plans were "strongly rightist" or conservative. Members of the lower house were to be elected by the people and those in the upper body by members of the lower one. That became the law and stayed that way until the 17th Amendment, ratified in 1913, allowed the people of each state to elect their own senators.

Also proposed was a chief executive, a national judiciary with a Supreme Court at the top, and provisions for admitting new states with republican governments in them all. In addition, the finished Constitution included proposals for amendments and much else including terms of office and staggered elections to prevent too many officials being unseated at the same time. The final product was what one academic observer called a "bundle of compromises" from beginning to end.

Lundberg described the delegates as "flinty hard-liners, determined to have their way, never to yield on anything substantial....willing to make purely political compromises (over) the means of carrying on government (but) adamantly resistant....when it came to (its) ends." Those were primarily economic and social, and those were left as they were when ties with Great Britain were cut.

Thinking then was much like today with provisions in the Constitution targeting the discontented. Congress was empowered to raise revenue through taxation, always hitting the less advantaged hardest. It was authorized to borrow money without limit meaning the people would have to service the debt. It was given power to regulate foreign and interstate commerce assuring the rich their interests would be served, and much more. In sum, the document created "was the means by which the traditional establishment....was re-establishing itself" leaving out of the mix the interests of the "common man (who) in point of fact was going to be allowed to remain....common (with) the Constitution, contrary to political blarney (offering) him no bonuses for it."

Lundberg titled one sub-section: "Down with the People." In it, he caught the mood of the delegates as expressed by Roger Sherman of Connecticut who said "The people should have as little to do as may be about the government." Elbridge Gerry then denounced the evils stemming from "the excess of democracy," and debating delegates drubbed democracy and "the people" repeatedly. That's how Alexander Hamilton saw things in his view of "mankind in toto (being) wholly depraved" disagreeing with Thomas Paine's notion of government being depraved and people being inherently good. Paine wasn't a delegate so he had no input into the proceedings and couldn't argue against the central interest of property as a requirement for voting and holding office.

Even Jefferson accepted this idea but hated the word enough to use another expression for it in the Declaration of Independence he authored. His substitute language for "property" was "the pursuit of happiness," meaning the same thing. While Jefferson abhorred that "word," the attending delegates (Madison and Hamilton among them) found it their "favorite (one), often brought to the fore as a matter of deepest concern." Also brought up was the "minority," but not "any minority or all minorities. It was the minority of the opulent."

The far-sighted among them foresaw a bonanza coming from the revolution that came about when the states passed confiscation acts, putting properties up for sale at bargain prices, still only affordable to the affluent. It sounds very much like the way corporate predators planned to pillage and plunder Iraq and have done a pretty good job of it.

There was also plenty of graft to go around, again just like in Iraq and at home as well. Lundberg noted "the other big bonanza of the revolution was the trans-Allegheny domains in which patriot speculators made and lost fortunes." The well-off had their eyes on thousands of parcels of land and buildings wrested from their lawful owners. They also wanted to assure that never happened to them.

Then there was the ratification process itself that turned out to be a tussle as soon as the Constitution was sent to Congress. Lundberg reviewed the arduous give and take process of compromise that finally got the document passed by 13 states with three others rejecting it.

This was when adopting the Bill of Rights made the difference. The ones adopted in the first 10 amendments weren't for "the people," nowhere in sight, but to provide them to property owners who wanted:

-- prohibitions against quartering troops in their property,

-- unreasonable searches and seizures there as well,

-- the right to have state militias protect them,

-- the right of people to bear arms, but not the way the 2nd Amendment is today interpreted,

-- the rights of free speech, the press, religion, assembly and petition, all to serve monied and propertied interests alone - not "The People,"

-- due process of law with speedy public trials, and

-- various other provisions worked out through compromise to become our acclaimed Bill of Rights. Two additional amendments were proposed but rejected by the majority. They would have banned monopolies and standing armies, matters of great enormity that might have made a huge difference thereafter. We'll never know for sure.

Lundberg stressed the importance of the amendments adopted. Without them, the movement for a second convention likely would have prevailed that might have derailed the whole process or greatly changed the Constitution's structure. That possibility had to be avoided at all costs and was by this compromise that had nothing to do with granting rights to "The People."

Government Free Style

Lundberg destroyed the popular myth of a government constrained by constitutional checks and balances. In fact, it can and repeatedly has done anything judged expedient, with or without popular approval, and within or outside the law of the land. In this respect, it's no different than most others able to operate the same way and often do. It's done through "the narrowest possible interpretations of the Constitution," but it's free to "operate further afield under broader or fanciful official interpretations" with history recording numerous examples.

Many presidents operated this way. Lundberg noted Kennedy, Johnson, Nixon, Wilson, T. and F. Roosevelt, Jackson, could have named Lincoln, and didn't know about Reagan, GHW Bush, Clinton and, most of all, GW Bush when his book was written.

A key point made is that "government is completely autonomous, detached, in a realm of its own" with its "main interest (being) economic (for the privileged) at all times." In pursuing this aim, "constitutional shackles and barriers (exist only) in the imaginations of many people" believing in them. Regardless of law, custom or anything else, sitting US governments have always been freelancing. They've been unresponsive to the public interest, uncaring about the will and needs of the majority, and generally able to finesse or ignore the law with ease as suits their purpose. As Lundberg put it: "forget the mirage of government by the people," or the rule of law for that matter, with George Bush only being the most extreme example of how things work in Washington all the time under all Presidents.

Lundberg went on to explain the Constitution effectively confers unlimited powers on the government. He cited Article I, Section 8, Sub-section 18 allotting to Congress power "to make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution....or any department or officer thereof." It's up to government, of course, to decide what's "necessary" and "proper" meaning the sky's the limit under the concept of sovereignty. The power of government is effectively limited only "by the boundaries of possibility." Special considerable powers are then afforded the President, dealt with in a separate section below, and another on the Supreme Court.

Lundberg explained how the "three divisions of the American government operate under the immoderately celebrated system of checks and balances" with the framers believing too much power in the hands of one person or group of persons was a potential setup for tyranny. Lundberg believed the theory was false, used the British model to make his case, but he never met George Bush who might have given him pause.

In Britain, the legislature and executive are inextricably linked, a single House of Commons runs the government, the upper House of Lords is only advisory, the courts can only apply the law the legislature hands them, all laws passed become part of the constitution, and new elections are generally called if a sitting government loses a vote of confidence.

In the British parliamentary system, the government consists of a committee of the House of Commons called the Cabinet presided over by a prime minister elected by his party members. He and all cabinet members are elected members of parliament (MPs) and can be voted in or out in any general election with all members standing at the same time. It's a vastly different and much fairer system overall than the convoluted American model even though, in theory, a British prime minister has much more control of the parliament than a US president has over the Congress with two parties and numerous disparate interests.

In practice, many US presidents get their way, despite the obstacles, and George Bush gets nearly everything he wants, takes it when it's not offered, and hardly ever faces congressional objection. The section below on the power of the presidency shows how the Constitution makes it so easy to do with Presidents, like Bush, taking full advantage on top of all the enormous powers he has under the law.

Britain has another interesting feature unheard of in Washington that would be refreshing to have. Once a week, there's a question period when the prime minister and his cabinet are held to account by the opposition and must answer truthfully or pretty close to it, at least in theory. Also, theoretically, a minister is supposed to face certain expulsion if an untruth stated is learned. In the US, in contrast, Presidents routinely lie to Congress, the public and maybe themselves to get away with anything they wish. They face no penalty doing it, under normal circumstances, with exceptions popping up occasionally like for Richard Nixon's serious lying and smoking gun evidence to prove it and Bill Clinton's inconsequential kind that was no one else's business but his own.

Lundberg then reviewed the labyrinthine US system the framers devised under the Roman maxim of "divide and rule" as follows:

-- a powerful (and at times omnipotent) chief executive at the top;

-- a bicameral Congress with a single member in the upper chamber able to subvert all others in it through the power of the filibuster (meaning pirate in Spanish);

-- a committee system ruled mostly by seniority or a by political powerbroker;

-- delay and circumlocution deliberately built into the system;

-- a separate judiciary with power to overrule the Congress and Executive;

-- staggered elections to assure continuity by preventing too many of the bums being thrown out together;

-- a two-party system with multiple constituencies, especially vulnerable to corruption and the power of big money that runs everything today making the whole system farcical, dishonest and a democracy only in the minds of the deceived and delusional.

This is a system under which Lundberg characterized the US electorate - left, right and center - as "the most bamboozled and surprised in the world" and leaves voters "reduced to the condition of one of Pavlov's experimental dogs - apathetic, inert, disinterested." It got Professor J. Allen to say "A system better adapted to the purpose of the lobbyist could not be devised," and that remark came long before the current era with things in government totally out of control leading one to wonder what Lundberg would say today if he were still living and commenting.

Court Over Constitution

Article III of the Constitution establishes the Supreme Court saying only: "The judicial power shall be vested in one Supreme Court, and in such inferior courts as the Congress may from time to time ordain and establish." Congress is explicitly empowered to regulate the Court, but, in fact, the Court "seems to regulate Congress." Lundberg believed it was to allow those unelected on it to be blamed for unpopular decisions getting them off the hook. Congress, if it choose to, has the upper hand, and even Court decisions on various issues only apply to a specific case leaving broader interpretations to other rulings if they come.

As for the common notion of "judicial review," it's unmentioned in the Constitution nor did the convention authorize it. This concept is derived by deduction from two separate parts of the Constitution: In Article VI, Section 2 saying the Constitution, laws, and treaties are the "supreme Law of the Land" and judges are bound by them; then in Article III, Section 1 saying judicial power applies to all cases implying judicial review is allowed. Under this interpretation of the law, appointed judges theoretically "have a power unprecedented in history - to annul acts of the Congress and President."

Lundberg then reviewed some notable examples of judicial power, first asserted in the famous Marbury v. Madison case in 1803. It established the principle of "judicial supremacy" articulated by Chief Justice John Marshall meaning the Court is the final arbiter of what is or is not the law. He set a precedent by voiding an act of Congress and the President. It put a brake on congressional and presidential powers, theoretically, but Presidents like George Bush act above the law by ignoring Congress and the Courts and usurping "unitary executive" powers claiming the law is what he says it is. He gets away with it because the other two branches do nothing to stop him.

In 1776 and at the time of the convention, few in the country believed in judicial review with theoreticians like Madison and James Wilson zealously opposed to it. They wanted legislatures and the executive to be the sole judges of their own constitutional powers. Lundberg then said "Judicial review....is just one of the usages of the Constitution that sprung up in the course of jockeying among the divisions, personalities and factions of government."

Lundberg then reviewed numerous other notable Court cases, including the shameful Dred Scott decision when claimant Scott, a slave, sued for his freedom on justifiable grounds and lost due to the tenor of the times.

A few others were:

-- Fletcher v. Peck in 1810 that stabilized the law of property rights, especially regarding contracts for the purchase of land;

-- Dartmouth College v Woodward in 1819 with the Court holding charters of private corporations were contracts and as such were protected by the contact clause;

-- McCulloch V Maryland also in 1819 with the Court ruling a state couldn't tax the branch of a bank established by an act of Congress;

-- Gibbons v. Ogden in 1824 when the Court upheld the supremacy of the United States over the states in the regulation of interstate commerce;

-- Plessy v. Ferguson in 1896 with the Court affirming discrimination in public places;

-- a number of cases, including US v. EC Knight Company in 1895, in which the Court vitiated the Sherman Anti-Trust Act of 1890 while at the same time keeping "hot on the trail of labor unions" as conspiracies in restraint of trade in violation of Sherman in Loewe v. Lawler in 1908;

-- Santa Clara County v. Southern Pacific Railroad in 1886 when Court reporter JC Bancroft Davis wrote what the Court refused to refute, thereby granting corporations the legal status of personhood under the 14th Amendment with all rights and benefits accruing from it but none of the obligations. In this writer's non-legal judgment, this decision above all others, adversely changed the course of history most by opening the door to the kinds of unchecked corporate power and abuses seen today. It stands as the most far-reaching, abusive and long-standing of all harmful Court decisions now haunting us.

Lundberg ended this chapter with a section titled "The Corporate State" citing what's pretty common knowledge today in the age of George Bush. The US is a corporate-dominated society run by near-omnipotent figures within and outside government. They believe in an "individualistic economy," with the law backing it, based on the inviolate principles of free private enterprise, with them in charge of everything for their self-interested gain. In a zero-sum society, it means their benefits harm the rest of us, and that's pretty much the way things are today with things far more out of control than when Lundberg wrote his book.

Even so, his comments pre-1980 observed how giant corporations arose "under the ministering hand of government officials, especially in the courts (and there emerged) wealthy dynasties of successful corporate intrepreneurs, insuring a line of (future) Robber Barons." With the Constitution forbidding "the granting of titles of nobility," corporate titans, in fact, had all the "material substance pertaining to European nobility (making) Money per se....ennobling in the American scheme."

Gross disparities in income and personal wealth, far more out of proportion now than three decades ago, are largely the result of these earlier events with government and business conspiring to make them possible. Earlier, and especially now, "successful wealthholders in almost every case had an omnipotent lever at their service: the government, including Congress, the courts and the chief executive." The constitutional story comes down to a question of money and money arrangements - who gets it, how, why, when, where, what for, and under what conditions. Also, who the law leaves out.

This story has nothing whatever to do with guaranteeing, as they say, life, liberty and the pursuit of happiness; establishing justice; upholding the rule of law equitably for everyone; promoting the general welfare; or securing the blessings of freedom for the general public unconsidered, unimportant and ignored by the three branches of government serving monied and property interests only, of which they are part.

This was how it was when the Constitution was drafted, it stayed that way through the years, and is written in stone today with Lundberg concluding "It seems safe to say (this way of things) will never be rectified." Never is a long time, hopefully on that count he's wrong, but how insightful and penetrating he was on the constitutional story he revealed equisitely so far with more below, beginning with the crucially important next section. George Bush will love it if someone reads it to him or this review.

The Veiled Autocrat

Lundberg's dominant theme here is that the US President is the most powerful political official on earth, bar none under any other system of government. "The office he holds is inherently imperial," regardless of the occupant or how he governs, and the Constitution confers this on him. Whereas under the British model with the executive as a collectivity, the US system "is absolutely unique, and dangerously vulnerable in many ways" with one man in charge fully able to exploit his position. "The American President," said Lundberg, stands "midway between a collective executive and an absolute dictator (and in times of war like now) becomes in fact quite constitutionally, a full-fledged dictator."

A single sentence, easily passed over or misunderstood, constitutes the essence of presidential power. It effectively grants the Executive near-limitless power, only constrained to the degree he so chooses. It's from Article II, Section 1 reading: "The executive power shall be vested in a President of the United States of America. Article II, Section 3 then almost nonchalantly adds: "The President shall take care that the laws be faithfully executed" without saying Presidents are virtually empowered to make laws as well as execute them even though nothing in the Constitution specifically permits this practice. More on that below.

Lundberg said the proper way to understand the Constitution is to view it as a "symphony" with big themes being like separate movements. Theme one in Article I, Section 1 says "All legislative powers herein granted shall be vested in a Congress of the United States." Theme two is the dominant one on the Executive in Article II, Section 1 cited above. The final movement or theme three deals with "The judicial power."

Lundberg then continued saying "to understand the inner nature of the United States government (the key question is) What is executive power? - aware all the time that it is concentrated in the hands of one man." He also reviewed how Presidents are elected "literally (by) electoral (unelected by the public) dummies" in an Electoral College. The process or scheme is a "long-acknowledged constitutional anomaly." They can subvert the popular vote, never meet or consult like the College of Cardinals does in Rome to elect a Pope, so, in fact, its use is "a farce all the way."

Now to the issue of executive power covered in Section 2. It's vast and frightening. The President:

-- is commander-in-chief of the military and in this capacity is completely autonomous in peace and a de facto dictator in war; although Article I, Section 8 grants only Congress the right to declare war, the President, in fact, can do it any time he wishes "without consulting anyone" and, of course, has done it many times;

-- can grant commutations or pardons except in cases of impeachment. Nixon resigned remember before near-certain impeachment;

-- can make treaties that become the law of the land, with the advice and consent of two-thirds of the Senate (not ratification as commonly believed); can also terminate treaties with a mere announcement as George Bush did renouncing the important ABM Treaty with the former Soviet Union; in addition, and with no constitutional sanction, he can rule by decree through executive agreements with foreign governments that in some cases are momentous ones like those made at Yalta and Potsdam near the end of WW II. While short of treaties, they then become the law of the land.

-- can appoint administration officials, diplomats, federal judges with Senate approval, that's usually routine, or can fill any vacancy through (Senate) recess appointments; can also discharge any appointed executive official other than judges and statutory administrative officials;

-- can veto congressional legislation, with history showing through the book's publication, they're sustained 96% of the time;

-- while Congress alone has appropriating authority, only the President has the power to release funds for spending by the executive branch or not release them;

-- Presidents also have a huge bureaucracy at their disposal including powerful officials like the Secretaries of Defense, State, Treasury and Homeland Security and the Attorney General in charge of the Justice Department;

-- Presidents also command center stage any time they wish. They can request and get national prime time television for any purpose with guaranteed extensive post-appearance coverage promoting his message with nary a disagreement with it on any issue;

-- throughout history, going back to George Washington, Presidents have issued Executive Orders (EOs) although the Constitution "nowhere implicitly or explicitly gives a President (the) power (to make) new law" by issuing "one-man, often far-reaching" EOs. However, as Lundberg explained above, the President has so much power he's virtually able to do whatever he wishes, the only constraint on him being himself and how he chooses to govern.

-- George Bush also usurped "Unitary Executive" power to brazenly and openly declare what this section makes clear - that the law is what he says it is. He proved his intent in six and a half years in office by subverting congressional legislation through his record-breaking number of unconstitutional "signing statements" - affecting over 1132 law provisions through 147 separate "statements," more than all previous Presidents combined. In so doing, he expanded presidential power even beyond the usual practices recounted above.

-- Presidents are, in fact, empowered to do almost anything not expressively forbidden in the Constitution, and very little there is; more importantly, with a little ingenuity and a lot of license and chutzpah, the President "can make almost any (constitutional) text mean whatever (he) wants it to mean" so, in fact, his authority is practically absolute or plenary. And the Supreme Court supports this notion as an "inherent power of sovereignty," according to Lundberg. He explained, if the US has sovereignty, it has all powers therein, and the President, as the sole executive, can exercise them freely without constitutional authorization or restraint.

In effect, "the President....is virtually a sovereign in his own person." Compared to the power of the President, Congress is mostly "a paper tiger, easily soothed or repulsed." The courts, as well, can be gotten around with a little creative exercise of presidential power, and in the case of George Bush, at times just ignoring their decisions when they disagree with his. As Lundberg put it: "One should never under-estimate the power of the President....nor over-estimate that of the Supreme Court. The supposed system of equitable checks and balances does not exist in fact (because Congress and the courts don't effectively use their constitutional authority)....the separation in the Constitution between legislative and the executive is wholly artificial."

Further, it's pure myth that the government is constrained by limited powers. Quite the opposite is true "which at the point of execution (reside in) one man," the President. In addition, "Until the American electorate creates effective political parties (which it never has done), Congress....will always be pretty much under (Presidents') thumb(s)." Under the "American constitutional system (the President) is very much a de facto king."

Lundberg cited examples such as Franklin Roosevelt, considered one of the nation's three greatest Presidents along with Lincoln and Washington. He "waged (illegal) naval warfare against Germany before Pearl Harbor." During the war, he stretched his powers to the limit and functioned as a dictator. Truman atom-bombed Japan twice gratuitously and criminally with the war over and the Japanese negotiating surrender. He also went around Congress to wage a war of aggression on North Korea when its forces attacked the South after repeated US-directed southern incursions against the North. Lyndon Johnson attacked North Vietnam February 7, 1965 using the contrived August, 1964 Gulf of Tonkin Resolution as justification even though there was none. The examples are endless, Presidents take full advantage, and nearly always get away with it.

The only thing Presidents can't do, in theory, is openly violate the law. But since he can interpret it creatively, it's up to Congress and the High Court to hold him to account, and that rarely happens. Nixon was forced to resign to avoid impeachment because there was smoking gun evidence on tape to convict him on top of his being roundly disliked making it easier to act. But what he did overall wasn't unusual except that he paid the price for it.

As Lundberg put it, "highhandedness, unpalatable doings (and) scandals" are part and parcel of politics from top to bottom in the system at all levels of government. Jethro Lieberman showed this type behavior "is a steady occupation at every level of government" in his pre-Watergate book - "How the Government Breaks the Law." At the executive level, he showed government proceeds "pretty much ad libitum outside the stipulated rules at all levels." In other words, the nation was always infested with Nixons at all levels, but most got away with their offenses and today that's truer than ever.

As for impeaching and convicting a President for malfeasance, Article II, Section 4 states it can only be for "treason, bribery, or other high crimes and misdemeanors." Based on the historical record, it's near-impossible to do with no President ever having been removed from office this way, and only two were impeached, both unjustly.

Lundberg quoted John Adams on this issue saying he was right believing it would take a national convulsion to remove a President by impeachment, it hasn't happened up to now, which is not to say it never will with no President more deserving of the "distinction" than the current sitting one who almost makes Richard Nixon look saintly by comparison. It's long past the time to smash the inviolate notion of presidential invincibility, and given the growing groundswell, it could happen against all odds. If it does, it will be a first, and if he were still living, it would also make Lundberg rethink his final comment on the subject that it's "virtually impossible to remove a President (and) His security in office....is but one facet of his power." Still remember, an exception, when it happens, only proves the rule, so Lundberg's assessment is still valid.

Presidential power since WW II is also reinforced by their own private army through the vast US intelligence apparatus and much more. The CIA is part of it and today functions mainly as a presidential praetorian guard and global mafia-style hit squad operating freely outside the law as a powerful rogue agency backed by an undisclosed budget likely topping $50 billion annually. And since January, 2003, the Department of Homeland Security functions as a national Gestapo about as free to do as it pleases as CIA that also operates outside its mandate on US soil along with the equally repressive FBI. They mainly target disaffected political groups and individuals publicly standing against government policies with enough influence to make a difference.

The Risks in One-Man Rule

Lundberg quoted noted political scientist Herman Finer (1898 - 1969) again reinforcing what's covered above that "there is (virtually) no limit to the Chief Executive's power." In six and a half years in office, George Bush proved he was right and then some. Finer, even in an earlier less complex era, portrayed the President as overweighted with responsibilities while having enough concentrated power in his hands to make irresponsible, rash or dangerous decisions with potentially immense repercussions.

Finer proposed a way to improve the presidency by relieving one man of more responsibility than anyone can handle alone and minimize incompetency or villainy at the same time. His idea was for a collective and supportive leadership formed around the President, including a cabinet of 11 Vice-Presidents elected in combination with the chief executive every four years.

The framers structured the government to frustrate and confuse the electorate. They did it through staggered elections to avoid a clearly visible line of authority as well as maintain a continuity of governance whatever else the public might prefer. Finer wanted to correct these kinds of faults in the current system. He also understood that Presidents are plucked out of almost anywhere because of their perceived electability, not from their ability to govern effectively in an office enough to overwhelm anyone no matter how able and dedicated.

His idea was for Presidents and Vice-Presidents to be required to have served in either house of Congress a minimum four years to learn how Washington operates that can be quite different from a state or the military where former generals of note, like Dwight Eisenhower and others, went on to become very ordinary or failed Presidents. Only George Washington was the exception proving the rule, and being a new nation's first President (governing a population smaller than Chicago today) was quite different from how things are now.

Finer also wanted the President and his cabinet to sit in the House of Representatives to make them more visible and responsible like the British model. His main concern was that too much responsibility lay with one man, with too much power to discharge it, and far too often that man turns out to be incompetent, venal or both. Under the present system, the President is near-omnipotent, operates in secrecy, is most often the wrong one chosen, and is able to spring surprises at will, often with potentially disastrous implications like today under George Bush.

He was also concerned about Presidents having secret ailments, impediments or becoming seriously ill enough to be unable to govern yet still be able to retain the power of the office. Woodrow Wilson was a case in point as he suffered a severe stroke and paralysis on his left side 17 months before his second term of office expired. His principle biographer said he was "either gravely ill (his last year in office) or severely incapacitated at the time the country needed his leadership most."

Wilson never should have been allowed to run at all as it was known seven years earlier he was a bad health risk. He did it because the information was concealed from the public even though Wilson himself thought he might die at any moment, was blind in one eye, suffered episodes of depression, dyspepsia, colds, headaches, dizziness and feelings of dullness and numbness in one hand the result of diseased nerves. In short, he was a physical and emotional basket case running the country and unable to do it much of the time and not all late in his second term.

Franklin Roosevelt is another prime example. At age 39, eleven years before being elected President, he was stricken with what was thought to be polio and was permanently paralyzed from the waist down. Yet, he kept his condition secret and (before the age of television) was never photographed in a wheelchair in public. In his third term, he was advised not to run for a fourth time because of his health. He did, of course, and won, but in 1941 his blood pressure was high and rising, his heart was enlarged, and he suffered from congestive heart failure from which he finally expired in April, 1945. By early 1944, he was in marked decline and a dying man.

With the most calamitous war in history in its late stages and the power of the chief executive most needed, Lundberg described FDR as "a burned-out matchstick" barely able to function. It showed in some of his irrational decisions at the end. Yet, he was still in charge as commander-in-chief and the most powerful leader on earth as the war in Europe and Asia still raged, and he alone was calling the shots.

With future Presidents just as vulnerable to serious health problems, Lundberg's view was as the presidency is now structured, "the American people are sitting on a bomb....likely to explode (unexpectedly) at any moment." The problem, he said, isn't just about an imperial presidency, but an "anarchic," "wild-cat" or "Protean" one under which "anything can happen." Drawing an analogy to a modern-day corporation, he explained the obvious. No large publicly-owned corporation would ever operate this way. It would never put its chips on a single person or "choose its chief executive (as) nonchalantly as does the United States."

Wilson and Roosevelt weren't the only Presidents who served in office while experiencing serious illness. Eisenhower suffered two heart attacks along with other health problems, and Kennedy "was a walking bundle of ailments" with much of it concealed. Lyndon Johnson, as well, was in trouble from the start, suffered a massive heart attack before winning national office, and (unknown to the public) was never judged physically or mentally sound while President.

His actions proved it and give pause to what may be afflicting George Bush, kept secret from the public. A disastrous six and a half year record conclusively shows this man is unfit to serve in the nation's highest office or in any responsible capacity. Because he's there taking full advantage, all humanity is held hostage to what's coming next at the hands of a venal, incompetent and possibly mentally unbalanced or deranged US chief executive.

For all the above-stated reasons along with the examples just cited, Finer believed the office of the President was ill-structured and should be drastically changed for the betterment of the country (and all humanity). As far as achieving any of what he proposed or any other type broad brush makeover of the system, Lundberg believed it's near-impossible. Doing it would involve amending the Constitution and in a wholesale way. With certain opposition in enough states, there's almost no chance these type changes can happen.

How did this happen, and were the framers at fault, Lundberg asks? To some degree, but not entirely. It's pure fantasy to imagine any group of men, even if they'd been the most talented and far-sighted, could have met in 1787 to produce a Constitution, elaborate, detailed and ingenious enough to "anticipate and provide for every facet and contingency of the nation" that would eventually encompass 50 states and grow to a diverse population exceeding 300 million. It was impossible then and now everywhere. Furthermore, they made the amending process extremely hard to do even though it was subsequently accomplished 17 times after the Bill of Rights was added to get the Constitution ratified in the first place.

At a much simpler time, the framers didn't understand that governments fundamentally act in their own self-interest whatever the law says. The Constitution complicates it for them by consisting of a "set of incomplete prescriptions, ostensibly frozen in time except as subject to an almost impossible amending process." So to get around the problem or ignore it, governments function ad libitum with one man at the top calling the shots even though this isn't what the framers had in mind.

So all the "patriotic praise....heaped upon the Constitution in schoolbooks....is simple nonsense, pap." How well the country is served at any time depends on the pure luck of the draw to get a really first-rate capable leader as President. It rarely happens, and Lundberg cites only the three example of Washington, Lincoln and Roosevelt. None of the others matched them, and far too many were abysmal failures or worse with one candidate just cited standing out prominently as the overwhelming choice for the worst and most dangerous ever.

On top of all the other flaws and faults, "the people" were deliberately and willfully left out of the process proving "democracy is not recognized in the Constitution," shocking as that notion is to most people reading these words. Lundberg had hopes, however, that a future time would come that would embrace constitutional improvement on a significant scale. As he put it, this document, "as it stands, is by no means the system the United States is ultimately fated to embrace (forever). For there is a great deal of room for improvement - a great deal" (indeed, and then some).

A Renewed Call for a Second Convention

With the need so much greater now than 30 years ago, in the age of George Bush, it's time we went about the process Lundberg advocated in the title of this section. Doing it, however, is infinitely harder than achieving relatively simpler amendment tinkering here and there, even though Article V allows for such a procedure. With everything in mind from what's covered above, it's easy to believe, whatever the Constitution allows, convening a convention for constitutional change is near-impossible given the way the country is now run, by whom and most importantly for whom - the immensely powerful monied interests sitting in corporate boardrooms running the country, the world and our lives.

They've got everything arranged their way, it's taken decades to get it, they engineer elections to get the best "democracy" they can buy, and it always turns out that way, more or less. The bankers and Wall Street even own the Federal Reserve giving them the most powerful instrument of government - the right to print and control the nation's money supply and charge interest on it. By so doing, the government (and the public) must pay interest on its own money that wouldn't happen if it printed its own as Article I, Section 8 of the Constitution says only the government can do.

It relinquished that power when Woodrow Wilson betrayed the public by signing the most disastrous piece of legislation in the nation's history willfully after Congress passed the Federal Reserve Act in the dead of night December 23, 1913 with many of its members away for the holiday and most others unaware of what, in fact, they were signing.

Today, with a virtual stranglehold on state power, in league with Democrat and Republican governments in their pockets, why would corporate giants ever give up what took so long for them to get. They never will, Lundberg knew it, too, and said the chance for real change from a second convention "is almost nil....if (these pages) have shown anything, (it's clear as day) the government (backed by the power of money) controls the Constitution," not the other way around or "the people" either, left out completely from the start.

Lundberg didn't say it but surely believed achieving the kinds of democratic changes he wanted would have to come from the bottom up. Only an aroused public, en masse and undeterred, fed up with the state of things and committed can make it happen. Impossible as it seems, history at times surprises, and if it does this time, it will be the greatest one ever....and not a moment too soon.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen Saturdays to the Steve Lendman News and Information Hour on TheMicroEffect.com at noon US central time.

Wednesday, August 01, 2007

Reviewing Linda McQuaig's "It's the Crude, Dude"

Reviewing Linda McQuaig's "It's the Crude, Dude" - by Stephen Lendman

Linda McQuaig is a prominent, admired, and award-winning Canadian journalist writing about vital issues of concern to everyone. She was a national reporter for the Toronto Globe and Mail before joining the Toronto Star where she now covers Canadian politics with her trademark combination of solid research, keen analysis, irreverence, passion and wit. She's easy to read, never boring, and fearless. The National Post called her "Canada's Michael Moore."

McQuaig is also a prolific author with a well-deserved reputation for taking on the establishment. In her previous seven books, she challenged Canada's deficit reduction scheme to gut essential social services. She explained how the rich used the country's tax system to get richer the way it's worked in the US since Ronald Reagan and then exploded under George Bush. She exposed the fraud of "free trade" (never called fair because it isn't) empowering giant corporations over sovereign states while exploiting working people everywhere.

She also showed how successive Canadian governments waged war on equality since the 1980s, and in her latest book, "Holding the Bully's Coat - Canada and the US Empire," she takes aim at the conservative Stephen Harper administration's allying with George Bush's belligerent lawlessness and phony "war on terrorism." Canada chose not to be part of Washington's concocted "coalition of the willing" in Iraq but partnered in its war of aggression and illegal occupation of Afghanistan.

Her last book before her latest one is another important tour de force and subject of this review. It's titled "It's the Crude, Dude: war, big oil, and the fight for the planet." It's no secret America's wars in the Middle East and Central Asia are to control what a Franklin Roosevelt State Department spokesman in 1945 called a "stupendous source of strategic power, and one of the greatest material prizes in world history" - the huge amount of Middle East oil with most of it believed to be in Saudi Arabia then. With it goes veto power over how it's distributed, to whom, at what price, for whose benefit and at whose expense. Today, one country above all others may be that "greatest material prize" making it target number one America intends to control for the strategic power and riches it represents.

The country is Iraq, and it's the reason US forces invaded and occupy it. McQuaig's book explained it stunningly, beginning on her opening page: The "oil motive" drives America's wars "given oil's obvious geopolitical significance, and the fact that Iraq is the last easily harvested oil bonanza left on earth." More on that below and also on the fact that with less than 5% of the world's population and 3% of its oil reserves, the US wastefully consumes one-fourth of all oil production with no plan to cut back. It means a reliable outside source is essential pointing directly at the Middle East where two-thirds of all proved reserves are located. They're not inexhaustible, however, as oil is a finite resource. It means a crunch ahead is inevitable.

McQuaig cited a US Department of Energy National Energy Laboratory report saying: "The world has never faced a problem like this....Previous transitions (like 'wood to coal and coal to oil') were gradual and evolutionary; oil peaking will be abrupt and revolutionary," and may already have occurred. Further, with America waging two costly oil-related wars for much of what's left, gaining control has become violent with no letup in sight and more oil-rich nations in Washington's target queue. More on that below as well and the fact that oil consumption keeps increasing, two huge emerging nations (China and India) need growing amounts of it, just at a time production peaked and is declining. That's a combustible mixture now playing out in Iraq, Afghanistan, and Somalia. It also affects Iran, Venezuela, Sudan (for its Darfur oil riches) and other strategically important oil-rich nations that dare defy America by wanting control of their own resources along with the major share of revenue from them.

McQuaig deals with this timely and important subject in the part of the world where it matters most - the Middle East and especially Iraq where America came to stay. Her book is divided into 10 tantalizingly titled chapters. It was written in 2004, updated in 2006, and is just as relevant now as when first published. Some of the story is known, but much information covered isn't common knowledge and key parts aren't discussed at all in the mainstream. They include the rise of Big Oil and OPEC, Iraq's strategic importance, its potentially immense and easily accessible untapped oil riches, and America's intention to turn the nation into a centrally located Middle East military base with plans to stay as long as there's enough oil in the country and region to make it worthwhile. Current talk of future force drawdowns and withdrawal is baloney. That will be discussed further below as well.

McQuaig provides lots of relevant context for a full understanding of why oil centrally dominates geopolitics today:

-- wars and the reason America fights so many of them - for the essential resources, mainly oil, to keep the heart of capitalism beating, without which it can't;

-- the dominant media's vital hyperventilating lead cheerleader role selling them;

-- the power of the oil cartel and how it developed and grew after Edwin Drake drilled the first commercially successful well in Titusville, PA in 1859.

-- how John D. Rockefeller ruthlessly built a powerful Oil Trust he controlled; how it was nominally dismembered by Theodore Roosevelt's trust-busting efforts early in the last century; yet how it endured through joint ventures, interlocking directorates, mergers and "working (partial ownership) control" of its separate pieces, the largest of which was Rockefeller's Standard Oil of New Jersey, now called ExxonMobil. The old Oil Trust would fit in its back pocket.

-- the role of the US auto industry and its addiction to gas-guzzling, hugely greenhouse gas emitting, high-profit SUVs accounting for one-fourth of all US auto sales;

-- the rise, fall and reemergence of OPEC;

-- the historical roles of Saudi Arabia and Venezuela as dominant oil producing nations and the central role Iraq plays today as the grandest of grand oil prizes;

-- the hugely important issue of global warming fossil fuel burning causes; how transportation is over one-fourth of the problem with passenger vehicles the main culprit, and this industry's accounting for half of total oil consumption;

-- and still more in McQuaig's powerful, riveting, and relevant account of oil's central importance in our lives. Her book reads like a thriller. But the story is real, and it's vital to know its contents. Read on for a detailed sampling. Then buy and read the book for the full account.

Fort Knox Guarded by a Chihuahua

The title refers to language about oil-rich Canada that a US investment service, called Daily Reckoning, used in a provocative newsletter article. It said Canada owes us (their) oil. "Without our protection, (the country) is the natural resources equivalent of Fort Knox guarded by a 'No Trespassing' sign and a Chihuahua" because our military protects our northern neighbor. That's likely news to most Canadians for a country with no enemies. Canada, however, is extremely oil-rich, and counting its huge amount of hard to refine tar sands oil ranks second in the world in total reserves.

In her newest book, "Holding the Bully's Coat," McQuaig explains her nation is currently the US's leading energy supplier. Canada's importance will grow ahead as it plans to triple its oil sands production by 2015 to three million barrels daily, earmarking most of it for US markets. It's part of a secretly launched 2005 scheme called the Security and Prosperity Partnership of North America (SPP) or North American Union.

It's a tri-national agreement hatched below the radar, controlled by Washington, and advocates greater economic, political, social, and security integration between the US (as boss), Canada and Mexico. In fact, it's an ugly corporate-led plot against the sovereignty of three nations for greater profits, enforced by a common hard line security strategy already in play in each country. It's goal is a borderless North America under US control without barriers to trade and capital flows for corporate giants, mainly US ones.

It's also to insure America gets free and unlimited access to Canadian and Mexican resources, mainly oil, but Canadian water, too. That will assure US energy security while denying Canada and Mexico preferential access to their own resources henceforth earmarked for US markets. The scheme amounts to NAFTA on steroids combined with Pox Americana homeland security enforcement partnered with Canadian and Mexican contingents. It adds up to the worst of all possible worlds headed for an unmasked "deeply integrated" police state.

Canada is also currently hamstrung by a provision it agreed to in ratifying NAFTA in 1993. It gave up the right to reduce its US energy exports (should it need more of them) unless it cuts its own consumption by a comparable amount. Oil-rich Mexico, in contrast, agreed to no such provision and got an exemption Canada lacks. Canada has a loophole, though, SPP provisions will close if enacted. NAFTA can't prevent the country's use of its newly developed tar sands oil or the right to export them to other nations, as of now. With that in mind, Canada is building a 720 mile oil pipeline from northern (oil-rich) Alberta to British Columbia in the far west. When completed, it will enable resources to be exported to China or any other oil-consuming nation Canada chooses to trade with.

Meanwhile, back in the US, the Iraq war was launched in March, 2003. Dominant media fear mongering helped sell it, giddy cheerleadering accompanied its start, the reasons for going were reinvented when ones first given were exposed as lies, excuse-making now explains why things haven't gone as planned, and all the while we're told it had nothing to do with oil. And fish don't swim, and birds don't fly. Instead, as McQuaig explained "....the Iraq saga (was to disarm) a dangerous dictator (morphed into) a battle to bring democracy to the Middle East (with) oil remain(ing) strangely offstage, hidden in plain sight."

Clearly, oil drives US policy because of this nation's insatiable appetite for 25% of world production Washington feels it has a birthright to use excessively. We now compete with other growing economies for a dwindling supply of an irreplaceable resource we can't do without. McQuaig noted that prospect looms as "the world is much closer to running out of oil than most government or industry officials are willing to admit." We now compete with China and India along with developed nations, with China's prodigious growth alone devouring huge amounts of a fast-depleting resource at current rates of consumption.

McQuaig quoted Edmonton-based energy economist Mark Anielski saying: "There's not enough oil to feed two (voracious) superpowers." Enter Canada as already explained above and Venezuela to be addressed later in a separate chapter on that oil-rich nation under Hugo Chavez. For now, it deserves mentioning McQuaig brings him up because he made some "far-reaching deals with China to develop Venezuela's considerable oil reserves" and build a relationship with the Asian giant to supply it with increasing amounts of future output.

The problem is no matter how much more oil is left in the ground, we're now consuming more than we're producing. "Oil is finite and not recyclable," noted McQuaig, and past experience shows humans aren't smart or caring enough to figure a way out of this dilemma without making painful changes they haven't been inclined to do so far. Today, the world runs on oil. It touches nearly all parts of our lives from running our factories to powering cars and other means of transportation to growing the food we eat and much more. McQuaig explained "no energy source in view....is as effective, versatile, and potent as oil." Yet, the solution to our dilemma is to rely on lots less of it, substituting less ecologically damaging sources like wind, sun and waves.

We've already consumed around half the world's supply, according to many reliable estimates, and have done it mostly over the last 100 years. There may be about one trillion barrels left in the ground, but at current consumption rates it'll be gone in forty years or less. Also, the easy to find and produce oil is running out. It's nearly all been found except in Iraq, making that country so attractive. The vast remaining reserves elsewhere are hard to find, expensive to produce and more costly overall to bring to market, like Canada's tar sands and Venezuela's heavy oil.

McQuaig noted an oil industry rule of thumb is companies should bring on at least as much new oil as they produce. The industry, however, falls far short of that, and some analysts, like Matthew Simmons, believe the world's largest oil-rich nation, Saudi Arabia, has considerably less oil left than it claims because it used up so much supplying the West as its swing producer. As supplies get lower and scarcity grows in the face of rising demand, oil prices will also rise, and one Wall Street firm, Goldman Sachs, thinks they're not far from topping $100 a barrel.

McQuaig also raised a central issue she devotes an entire later chapter to - a looming global warming crisis barely getting the attention it deserves although credible climate scientists no longer debate what they know is a major problem demanding attention now. Here she cited a Pentagon-commissioned report describing global warming as a phenomenon "that could transform the world dramatically in the next twenty years....with major European cities (submerged) and Britain plunged into a Siberian climate." The report also sees a coming plague of "typhoons, mega-droughts and famine" ahead that will bring "catastrophic changes" causing "widespread human strife and even nuclear conflict."

The Pentagon's concern is national security, so its top brass are planning ahead for what McQuaig called "the prospect of life on earth reverting to a primitive, desperate, brutal quest for survival" needing lots more Marines available to subdue. That's no concern at the headquarters of the largest, most profitable company on earth - oil giant ExxonMobil. It earned a record $39.5 billion in 2006 on sales of $377.6 billion, more than double oil-rich Venezuela's GDP the same year according to IMF data.

If ExxonMobil were a nation, it would rank number 20 in the world (based on GDP) for 2006 ahead of Switzerland and Indonesia and slightly behind Sweden and Turkey. It means this company has immense power and uses it to keep the world consuming increasing amounts of what grows its sales and profits and keeps elevating it higher in the world rankings of countries by size. Notions like global warming, climate control measures, and Kyoto agreements send chills through its boardroom. The company acts aggressively to deny a problem exists or that oil and other fossil fuels are a cause for concern.

Conservative think tanks like the Competitive Enterprise Institute echo the same claim with its director, Myron Ebell, calling Kyoto defenders "an animus against humanity." Because it gets generous funding from ExxonMobil and other corporate interests, it has every incentive to be dismissive about what there's virtual scientific consensus on.

Problem or not, the US intends to lock up control of as much of this resource as possible by any means and whatever the consequences. The need for it goes back decades as a "vital American policy objective." Referring to Saudi oil, the FDR state department quoted above said their resources "must remain under American control (to supplement and replace) our dwindling reserves (when we had plenty of them), and of preventing this power potential from falling into unfriendly hands."

All American presidents accept this notion, even Jimmy Carter in his January, 1980 State of the Union address as he was about to leave office. He laid out his Carter Doctrine (written by Zbigniew Brzezinski) stating: "An attempt by any outside force to gain control of the Persian Gulf region will be regarded as an assault on the vital interests of the United States of America, and such an assault will be repelled by any means necessary, including military force."

The same theme with a different emphasis came out of Dick Cheney's 2001 energy task force. It acknowledged a dwindling supply of world oil reserves focusing on the Middle East as a stopgap solution "where the prize ultimately lies." He had a plan to get it that's discussed below.

Along Comes Iraq

From inception, the US was always an imperial nation. It was in our DNA from the beginning when our earliest settlers slaughtered millions of Native Indians for their land and resources in our great push West and South "from sea to shining sea." Jefferson even sanctified it in our Declaration of Independence calling Native peoples "merciless indian savages," and our Constitution dismissed them as non-persons.

WW II changed everything, however, when America emerged as the only dominant nation left standing. We became the world's unchallengeable economic, political and military superpower with designs for world hegemony. It emerged full-blown under George Bush post-9/11 whose administration-picked officials designed an imperial grand strategy in 1998 as members of the Project for a New American Century (PNAC). It revived Paul Wolfowitz and Dick Cheney aide Lewis Libby's 1992 hawkish Defense Planning Guidance putting in new form a plan for "Rebuilding America's Defenses: Strategies, Forces and Resources for a New Century. It also updated the Truman Doctrine (state department advisor George Kennan devised) for "Cold War containment" and an earlier strategy for US global military and economic dominance.

Today, the Middle East, Central Asia and all independent-minded oil rich and other states have replaced the Soviet bloc, and the new evil empire is "international terrorism" and "Islamofascist" threats to our national security. It's the same old scheme for world dominance repackaged with new names and faces replacing old ones.

Enter Iraq, the Bush administration had designs on before settling into office. Treasury Secretary Paul O'Neill revealed it was topic one in the early weeks of 2001, months before 9/11 made attacking and occupying it possible. He was shocked to discover the scheme was being hatched secretly by Dick Cheney in the first meeting of the National Security Council held 10 days after the President's inauguration. The decision was taken with talk moving on to logistics of "how" and "how quickly," and whether Iraq or Afghanistan was number one or two in our target queue. The latter, of course, came first with Central Asia's immense resources in mind, but it was just prologue for the "shock and awe" that began in March, 2003 in the land between two rivers in the cradle of civilization, now smashed by intent to free up its oil bonanza for Big Oil to exploit.

Pulling off this scheme meant getting the public on board that works best by scaring it to death with lots of help from round-the-clock dominant media hyperventilating. It made it easy selling the concocted notion of "Enemy Number One" Osama bin Ladin (a former CIA asset), Al-Queda terrorists and the "smoking gun threat" of WMDs showing up in the shape of a "mushroom-shaped cloud." Former Dean of the University of Pennsylvania's Annenberg School of Communications, George Gerbner, explained how it works: "Fearful people are more dependent, more easily manipulated and controlled, more susceptible to deceptively simple, strong, tough measures and hard-line postures....they may accept and even welcome repression if it promises to relieve their insecurities" and anxieties.

Paul Wolfowitz may have inadvertently revealed the Bush administration's scheme to do it. He first said the WMD threat was chosen for "bureaucratic reasons." Then he told Singapore journalists on an Asian visit it was the only reason everyone could agree on, and finally he admitted Iraq was chosen over North Korea because it's swimming on a "sea of oil." That went unreported in the mainstream where "the word 'oil' remained unmentioned and unmentionable."

When no WMDs were found, the reasons for war were reinvented. Now the emphasis was to bring democracy to the country as a humanitarian intervention, and being wrong about WMDs was chalked up as faulty pre-war intelligence. Again, the real oil motive was kept off the table "in plain sight" as McQuaig observed. It was also to remove a leader unwilling to let his nation become a US pawn, an unforgivable sin in Washington's eyes, especially if the state swims on a "sea of (mostly undeveloped easily accessed) oil." Iraq's oil treasure is the last bonanza of "low-hanging fruit" on the planet making it too rich a prize to pass up regardless of cost or degree of difficulty getting control of it.

McQuaig explained exploration of Iraq's oil potential remained "frozen in time" with almost no new development in over two decades because of intervening wars going back to the 1980s and economic sanctions in place following the Gulf war in 1991. Yet, even with dated information, it's known Iraq has at least 10% of world oil reserves. If its potential ends up doubling or tripling, as happened in Saudi Arabia in the last 20 years, it could, in fact, have the world's largest proved reserves. McQuaig noted that possibility is "staggering" in importance making the country "the most sought after real estate on the face of the earth" according to an oil analyst she interviewed.

In future years, with its production potential fully developed and oil at $50 a barrel (it could be double that or more), it translates to revenue of $70 billion a year pumping 5 million barrels daily and $100 billion at 7 million barrels. Today, Saudi Arabia produces 8 million daily barrels or more if called on. Iraq is also strategically located between Saudi Arabia and Iran at the top end of the Persian Gulf. It's thus ideally positioned for a military base as McQuaig's quoted oil analyst observed saying: "Think of Iraq as a military base with a very large oil reserve underneath....You can't ask for better than that."

It makes the country so strategically important, Global Policy Forum's James Paul argued losing Iraq would have been devastating for Big (US) Oil. It represents "the whole future of the oil industry," frozen in time, hugely endowed, and easy pickings for the lucky companies able to harvest it and reap immense profits doing it. Because of its importance, the Cheney energy task force included Big Oil giants in its secret discussions making plans for war with Iraq and needing its input for parcelling out its resources afterward. The Wall Street Journal reported in October, 2002 Cheney's staff secretly met with ExxonMobil, ChevronTexaco, ConocoPhillips and Halliburton executives on plans to secure and rehabilitate Iraq's oil fields. Thereafter, they'd take them over and run them.

From the early 1970s, most Middle East countries and Venezuela's oil industries were nationalized, and state-owned oil companies still control most of the world's oil. McQuaig noted "major international oil companies control a mere 4 per cent" but adjusted and prospered under that arrangement nonetheless. In the Middle East, and most everywhere else, they do the drilling and pumping under revenue sharing contracts with host governments.

We now know what McQuaig may have been the first to report in her book - that Washington's plan for Iraq involved privatizing its oil industry along with everything else in the country already sold off to foreign investors by 2007 or will be. She noted a secret 100 page contracting document drafted by the US Agency for International Development (USAID), with Treasury Department help. It detailed a plan to replace Iraq's state-run economy with a privately owned one. It was a "Mass Privatization Program" calling for "private sector involvement in strategic sectors, including privatization, asset sales, concessions, leases and management contracts, especially in the oil and supporting industries." McQuaig said it was to "make the country a safe place for foreign investment," or put another way, a free-market paradise for corporate America.

A state department subtler form of oil privatization was drafted as well with heavy oil industry input. It laid out seven possible production models all involving Iraq's oil nominally remaining under state control with "operation and control of the oil fields....handed over to foreign oil companies."

Subtleties apparently were abandoned in the final US-Big Oil drafted "Hydrocarbon Law" scheme filled with secret provisions now before the Iraqi Parliament. It's hugely contentious as it grants Iraq's National Oil Company exclusive control of only 17 of the nation's 80 known oil fields. The others are set aside for Big US and UK Oil investors mainly in a shameless act of plunder. In addition, all new deposits found (the bulk of the country's oil) are to be set aside for foreign investor development with provisions allowing them to expropriate all earnings and invest nothing in Iraq's economy. They also have no obligation to hire local workers, respect union rights, or share new technologies. In addition, they'll be granted long-term contracts up to 30 or more years, dispossessing Iraq and its people of their own resources in a naked scheme to steal them.

Because Iraqi resistance to US occupation is so unrelenting, intense and violent, there's no way for sure to know how future events will play out. One thing is sure, however. Iraq's oil bonanza won't be as easy for foreign investors to exploit as once thought possible and may never be.

The Man to See

In this section, McQuaig details the lucrative business of war-profiteering showing why conflicts are great for business. For companies close to the Bush administration, it was a bonanza waiting to be reaped from huge no-bid contracts. First in line was Dick Cheney's former employer, Halliburton and its subsidiary Kellogg, Brown and Root. Since 2001 in Afghanistan and Iraq, it was awarded upwards of $20 billion in war-related contracts the company then exploited to the fullest with shoddy work, massive cost-overruns and fraudulent billings, most barely drawing attention. Early on, Halliburton's Iraq oil field repairs were so poor the US Army estimated it cost the country $8 billion in lost production. It also botched a simple job installing metering systems at ports in southern Iraq to protect against oil being smuggled from the country.

In all, well over 70 US firms, most well-connected and many with familiar names, shared in the contracting bonanza - companies like Bechtel, Fluor, Parsons, Shaw Group, SAIC, CH2M Hill, the Louis Berger Group, the Rendon Group, and at least 21 private security companies like DynCorp, Triple Canopy, Erinys and Blackwater USA supplying around 100,000 hugely overpaid paramilitary mercenaries (not the official phony 30,000 industry number). They supplement 170,000 US occupying forces providing protection for other war-profiteering companies and Iraqi officials.

Last year, Nobel laureate economist Joseph Stiglitz estimated the war's cost would ultimately exceed $2 trillion when all factors related to it are included making it the most expensive war ever adjusted for inflation. Omitting parts of what Stiglitz included, the conservative Congressional Research Service (CRS) June 28, 2007 Report for Congress showed $610 billion already approved through FY 2007 and May 25, 2007 supplemental funding covering Iraq and Afghanistan war related costs and other Global War on Terror operations since 9/11. At that level, it's approaching the inflation-adjusted $650 billion Vietnam war cost it may, in fact, have already exceeded.

Add an administration requested $148 billion more for FY 2008 and the cost jumps to $758 billion. Projections will likely go higher still with monthly "burn rates" spiraling from about $8 billion in 2005 to a Senate-estimated $12 billion now. Add in an administration requested DOD FY 2008 budget of $648.8 billion plus another $148 billion war-related supplemental for a grand total $796.8 billion - and rising for a bonanza of war-profiteering, waste, fraud and abuse. CRS conservatively under-projects a total cost up to $1.4 trillion for the next 10 years at reduced troop levels ranging from 30 - 70,000 on the assumption America is in Iraq and Afghanistan to stay with major permanent base installations in place and being built to assure it.

Capable Iraqi professionals and workers haven't shared in the spoils of war and were never part of Washington's occupation plans. They've been denied an operational role rebuilding and running the country's essential services they can do as well as foreign investors and for much less cost. McQuaig quoted former Iraqi oil minister under Saddam in the 1980s, Issam Al-Chalabi. He's not Iraqi exile Ahmed Chalabi who conspired with the Bush administration to plunder his own country, wanted to run it, and is the current oil minister. Issam Al-Chalabi was incensed that companies like Halliburton got contracts to put out Iraqi oil fires and rebuild the country's oil wells and production capacity. "Iraqi professionals have been doing this for decades," he said. "They are among the best in the world."

Iraq's National Oil Company is also capable of running the nation's oil industry but will only get a sliver of it if the new "Hydrocarbon Law" passes and becomes law. This was the key part of Washington's plan for ownership and management that includes all of Iraq's economy to pass largely into American business hands. McQuaig quoted a Jane Meyer New Yorker article explaining winning contracts in Iraq is the realm of Dick Cheney, and "Anything that has to do with Iraq policy, Cheney is the man to see." She should have added anything to do with running America, Cheney's also the man to see."

Washington always acts in Big Oil's interest, but the current administration is closer to the industry than any previous one. It's staffed and run by former oil and other energy industry executives, including the President and Vice-President. Oil is central to US plans for world dominance, but Iraq is only one part of the overall international oil picture, though the most important one of all. Vitally important as well is OPEC, run by its member nations and seen as a threat to Big Oil interests unless co-opted.

McQuaig explained ever since it became an important player in the mid-1970s, Washington tried to "undermine its effectiveness and weaken its unity." It succeeded because OPEC hurt itself and became less of a market influence after the early 1980s. One Wall Street analyst said "it was on its deathbed" by the late 1990s, until it suddenly began to revive. One man made it possible by 2000, "sav(ing) OPEC" - Venezuela's Hugo Chavez. How it happened is covered below.

Revolution and Ice Cream in Caracas

McQuaig reviewed Hugo Chavez's dramatic rise to become Venezuela's president, his Bolivarian Revolution, the transformation of his nation's oil policies, and his key role in the resurgence of OPEC. Chavez was first elected president in December, 1998 and assumed office in February, 1999. He proceeded to hold a national referendum so his people could decide whether to convene a National Constituent Assembly to draft a new constitution to embody his visionary agenda. It passed overwhelmingly followed three months later by elections to the Assembly to which members of Chavez's MVR party and parties allied to it won 95% of the seats. They then drafted the revolutionary Constitucion de la Republica Bolivariana de Venezuela. It was put to a nationwide vote in December, 1999 and overwhelmingly approved changing everything for the Venezuelan people.

The Constitution established the foundation and legal framework for President Chavez's revolutionary vision for structural change. He's since transformed his nation into a model participatory social democracy serving the needs of all Venezuelans instead of the privileged few alone the way it nearly always had been in the past. It allowed the people to choose their leaders and gave them unimaginable benefits like free quality health care as a "fundamental social right and....responsibility of the state....to guarantee it." It banned discrimination, established the principle of participatory democracy from the grassroots for everyone, guaranteed free speech, a free press, free elections, equal rights for indigenous people, and mandated government make quality free education available for all to the highest levels, and much more. Venezuela under Hugo Chavez would never be the same again, and the great majority of Venezuelans won't accept it any other way.

Chavez had another goal as well - to resuscitate OPEC, give oil producing states more power over their own resources and be fairly compensated for them through prices they controlled, not Big Oil. It would thus allow him to implement his Bolivarian Revolution from the greater revenues he'd get from a stronger, more unified organization of 11 significant oil producing nations. Chavez became a mediator to do it and undertook a whirlwind tour of member states to sell his plan to their leaders.

McQuaig explained his idea was based on the simple notion that OPEC needed stable prices kept within a "price band" Chavez proposed to be between $22 - $28 a barrel that today seems low. It wasn't then with oil prices down around $10 a barrel and less. Making the plan work was doable providing all OPEC nations agreed to abide by it and not cheat as was common for added revenue. The idea was for a united OPEC to cut production whenever prices dropped below its lower band and increase it above the upper one, thus letting basic supply and demand forces do their work. Chavez proposed an OPEC summit in Caracas in September, 2000, all its nations agreed to come, and after discussion signed on to implement the plan.

McQuaig summed up Chavez's achievement saying: "After being on the verge of extinction only a year earlier, OPEC was very much alive" and still is. Chavez's vision was "shaking up the international oil scene (but by doing it made) himself persona non grata in Washington." He's been at it ever since with his revolutionary social programs endearing himself to Venezuela's majority poor and working population who now receive essential services unheard of before and unimaginable in America now. He also promotes a bold new trade initiative called ALBA - the Bolivarian Alternative for the Americas. Unlike Global North one-way neoliberal schemes, it's an innovative "fair trade" alternative based on complementarity, solidarity and cooperation among participating Latin American states.

Chavez's policies are working. He built alliances with regional states and is using his nation's oil revenues responsibly with impressive results. He cut poverty in the country to around 25% of the population (when benefits from state-funded social programs are factored in) compared to its 1998 and 2003 post-management-led oil lockout high of 62%. Unemployment also fell from 20% in early 2003 to 8% in May, 2007, and inflation at, current high levels, is dropping as well with government measures being taken to combat it. All the while, business is booming with economic growth the highest in Latin America. It averaged around 10% or more per quarter for over the past three years, and finance minister Rodrigo Cabezas told Venezuela's state-run ABN news agency the country will exceed 8% growth this year. It's coming mainly from the private sector that added over 1100 new businesses and industries in 2005 and 2006.

Nonetheless, Chavez is Washington's Latin American "enemy number one" having tried four times to remove him and failed. McQuaig covered the dramatic two day CIA-orchestrated April, 2002 aborted coup. It caused mass street outrage and unwillingness of the country's military to go along. Chavez returned to office, survived an economically devastating oil management-led industry lockout, and resuscitated his nation and people impressively enough to win reelection as president last December by a nearly 2 - 1 margin.

McQuaig sat down with him for an extended two and a half interview at the Palacio de Miraflores (presidential palace) in Caracas in March, 2004. Chavez eschews pomp and remains true to his part black, part Indian roots. On December 3, 2006 election day, he drove himself to his polling station in his signature red Volkswagen, accompanied by his grandson. For his interview with McQuaig, he showed up casually dressed, and near the end of the session ordered ice cream for his guest that came in the form of chocolate sundaes topped with cherries.

Addressing questions posed, Chavez stressed the Bush administration was "invaded by madness." He's also certain it tried ousting him in 2002, was behind the oil management lockout, the August, 2004 staged recall referendum to remove him that flopped badly, and several attempts to kill him with more planned. He covered much more as well, including his desire for closer cooperation among Global South nations in their common interest to shake off the yoke of longstanding Global North neocolonial domination.

McQuaig also briefly covered America's involvement with Venezuela after oil was discovered there early last century. Ever since, Venezuela's oligarch elites and foreign oil interests collaborated to see "the country's immense oil wealth largely disappeared into private hands, both at home and abroad." There were occasional flirtations with change with leaders like Juan Pablo Perez Alfonzo (a founding member of OPEC) asserting more control over his nation's resources. Aligned against him, however, were powerful business interests, and little success was achieved. Although the nation nationalized its oil industry in the mid-1970s (along with most other oil producing countries), its state oil company PDVSA was run by Venezuelan managers deferential to foreign oil interests, mainly US ones.

Chavez is changing that and making impressive progress doing it, but still has miles to go toward establishing his social democracy (or socialism) for the 21st century. His task is enormous and involves no less than reversing generations of entrenched privilege and institutionalized corruption in a nation beholden to capital interests closely tied to Washington. He has two vital things going for him though - mass people-power support determined to keep him as President as long as he wants the job and the country's military on board as well. If Chavez can survive Washington's aim to remove him, he may remain Venezuela's leader for many years to come.

From Coffins to World Destruction

Here McQuaig dealt with one of the most vital issues of our time getting increasing attention but few efforts to address meaningfully. Today, global warming looms large as an urgent, pressing challenge demanding action now. It emerged on the political radar in the mid-1980s and got world attention at an international scientific conference in Toronto in June, 1988. Conservative Canadian Prime Minister Brian Mulroney, an unabashed corporatist, was its opening speaker. Astonishingly, he sounded an alarm saying "humanity is conducting an unintended, uncontrolled, globally pervasive experiment whose ultimate consequences are second only to nuclear war."

Early persuasive evidence of trouble ahead began surfacing back then. Today, it shows conclusively that human activity in modern industrial states is warming the earth's air and surface from fossil fuel burning greenhouse gas emissions causing:

-- arctic ice cap melting;

-- rising sea levels;

-- changed rainfall patterns;

-- increased frequency and intensity of weather extremes like floods, droughts, killer heat waves, wildfires, and hurricanes and cyclones;

-- water scarcity;

-- agricultural disruption and loss of arable land;

-- as many as one-third of plant and animal species extinct by 2050 by some credible estimates; and

-- increasing disease, displacement and economic losses from extreme weather-related events, lowering of ocean pH, reductions in the ozone layer, and the possible introduction of new phenomena unseen before or never extreme enough to threaten human life or ecological sustainability that will when we experience them.

There's no longer a debate in the scientific community on global warming. The near-majority consensus is the urgency to address it. It was almost as true in 1990 when McQuaig noted the independent Intergovernmental Panel on Climate Change (IPCC) met. It was headed by Robert Watson whose credentials included having been a senior NASA scientist. IPCC's first assessment report powerfully stated the problem. It said the "greenhouse effect" is real and the earth's surface has become noticeably warmer since the inception of the Industrial Revolution in the 19th century.

IPCC was even grimmer in a 2007 report suggesting a worst case scenario of "devastating harvests, dwindling water supplies, melting ice and loss of species (that likely understate) the threat facing the world." The London Independent's Information Environment Editor, Geoffrey Lean, made things sound even worse in his article titled "Global Warming Is (accelerating) Three Times Faster Than Worst Predictions" based on new authoritative studies. One is by the US National Academy of Sciences (NAS) showing CO2 emissions increasing 3% a year now compared to 1.1% in the 1990s. It's causing seas to rise twice as fast and Arctic ice caps to melt three times faster than previously thought. Another grim study was by the University of California's National Snow and Ice Data Center. It showed "Arctic ice has declined by 7.8 percent over the past 50 years, compared with an average by IPCC computer models of 2.5 per cent."

Global warming scoffers abound in a state of denial. They're in corporate boardrooms, halls of government and a few co-opted climate scientists and some in academia willing to sacrifice their integrity for whatever benefits they get in return. They say the evidence is inconclusive, more study is needed, and the financial costs of action will be prohibitive and hugely damaging to the economy. Watson's response is "The economic costs of inaction may be (far more) prohibitive," and many economists doubt addressing the problem will be harmful at all. McQuaig noted 2500 in the profession believe "(S)ound economic analysis shows that there are policy options that would slow climate change without harming American living standards, and these measures may, in fact, improve US productivity (more than making up the difference)."

McQuaig then mentioned a second 1995 IPCC report making their case even stronger, but not as strong as their latest one. Twelve years ago it said increasing atmospheric carbon dioxide buildup is seriously altering the world's delicate ecosystem. Since then, we got an important, if greatly inadequate first step, with the enactment of the Kyoto treaty. It went into effect in February, 2005 after 141 nations signed it, absent one vitally needed one to make it work - the US when the Bush administration brazenly withdrew from the process in March, 2001, barely after assuming office.

No other administration in US history is more closely aligned with dominant corporate energy interests showing they call many of the shots in Washington. One energy giant especially stood out in the rejection, and McQuaig put it this way: Giant "Exxon....found a friend. The most powerful government on earth had linked up with the richest (and likely most influential) company on earth - and the world no longer seemed invincible."

One of the leading causes of global warming is a popular product first introduced in the early 1980s, gained popularity in the 1990s, and now dominates the passenger car business. It's the so-called sport utility vehicle, or SUV, that McQuaig said has "less to do with sportiness and glamour, and more to do with security in an age of fear." She refered to them as a "mobile version of a gated community (with a) kind of me-first aggressiveness" pushing everything out of its way. Thanks to the power of advertising, their sales soared from a humble start. They now account for one-fourth of new car sales despite their cost, poor fuel efficiency, and the fact that families got along fine without them until Madison Avenue creative geniuses convinced millions they couldn't live without them.

Here's the problem. SUVs are huge gas guzzlers, and the transportation sector accounts for over one-fourth of US greenhouse gas emissions. SUVs are exempt from so-called CAFE standards referring to "corporate average fuel economy." The result is they emit around 40% more greenhouse gases per vehicle into the atmosphere causing enormous damage. And no one needs these vehicles in the first place except the auto industry earning huge profits selling them and not about stop voluntarily. Like the energy industry, the auto sector has powerful friends in Washington as well seeing nothing changes that hurts them.

The global warming issue is so serious it must be addressed and can be if Congress gets around to mandating it with a friendly administration willing to go along. One answer is greater efficiency to achieve what automakers won't address - making vehicles burn less gas using technology now known to exist. McQuaig noted the Union of Concerned Scientists (USC) said it can be done with current technology, and its engineers did it with their own SUV design that's 30% more fuel efficient than production models. Auto makers continue increasing vehicle efficiency but use it for more powerful engines and other new design features increasing profits. They reject fuel efficiency citing the cost, but it really comes down to applying their technological expertise where it produces the greatest return.

McQuaig summed up the situation saying it's clear "the voluntary approach won't work with fuel efficiency." With stronger mandated CAFE standards for cars and light trucks, including SUVs, oil consumption will drop dramatically. US autos of all types are now projected to consume 12 million barrels of oil a day by 2020. With easily attainable CAFE standards, consumption could be cut to 7.5 million barrels or a 40% savings. The Bush administration made things worse, not better, by adding a generous new tax measure favoring SUVs in its 2003 $350 billion tax cut. It allowed the self-employed to deduct the cost of a SUV purchase, thereby making them more attractive to all kinds of new customers like doctors, lawyers, accountants, the corner druggist, or anyone able to claim self-employment.

There's hope for change, however, based on recent Senate action. On June 21, that body passed the first comprehensive bill on new CAFE standards in over 20 years, and it was a bipartisan effort. It wasn't a perfect one but did raise the fleetwide average fuel efficiency standards for all cars, trucks and SUVs by 10 miles per gallon over 10 years or from 25 to 35 miles per gallon by model year 2020. So far, no action is scheduled in the House so it remains an open question what's ahead along with what can be expected if final legislation reaches an obstructionist President.

The Great Anaconda

Enter the Oil Trust and man who built it and himself into a hugely rich and powerful business titan and king of the original "robber barons" - John D. Rockefeller. None had more power and wealth or used it more ruthlessly than this corporate predator whose central aim was crushing all competition and making himself omnipotent in the growing oil industry. He did it by "employing a mix of enticement, threats, coercion, double-dealing, lying, cheating, bullying and ultimately using (his Oil Trust's) massive financial resources to crush opponents" as McQuaig explained it. Sounds about the way corporate giants operate today, except they now have friendly governments and courts making it easy for them. John D. had to work for his power and wealth starting from the bottom and building his oil empire from the ground up.

Early on, he spotted an opportunity to do it shortly after oil was first discovered in Titusville. He and a partner first invested in an oil refinery in Cleveland that became one of the city's largest. He then bought out his partner and started a second operation, opened an oil-selling company in New York, and consolidated everything into what he called Standard Oil Company. From there, McQuaig traces his rise to the business heights he achieved that included entering into a phony, far-reaching "combination" with major railways called the Southern Improvement Company. It was a scheme for preferential rebates and eliminating competition.

The story goes on to cover a four decade-long account of how Rockefeller built and consolidated his empire, crushing competition along the way ruthlessly but effectively. It came to a head in a New York City courtroom in 1907 when Theodore Roosevelt-picked lawyers went head-to-head in what McQuaig called "a titanic legal battle." In the end, the government won when the Supreme Court agreed with an earlier guilty verdict. It gave Standard Oil six months to divest all subsidiaries that quickly dismembered the giant company into a number of smaller but still large entities. The largest retained half the value of the original conglomerate. It was Standard Oil of New Jersey, now giant ExxonMobil, the largest, richest, most powerful company on earth and still one of the most predatory and ruthless in the spirit of its founder.

Today, the oil industry is more powerful than ever. It remains "a tightly knit club" through its extensive interlocking corporate ties and a cozy relationship with all administrations. None, however, are more accommodating than the current one run by former oil men and staffed by many energy industry officials making policies favoring them.

How Did Our Oil Get Under Their Sand

McQuaig continued the story as Rockefeller's spawned corporate empire began eyeing opportunities abroad. There were plenty around with the Middle East as ground zero holding two-thirds of today's proved reserves with most of Iraq's still uptapped and uncounted. She explained by the early 1950s international oil companies gained effective control of the region's oil and sought to get back what they lost when countries like Iran nationalized their industries to get a larger share of their own revenues.

Mohammed Mossadegh was its force as the nation's democratic leader. He no longer would tolerate the special concessions British-owned Anglo-Iranian Oil got in 1901 and had up to his tenure. It greatly advantaged Britain leaving Iran only a sliver of its own oil wealth. His government changed things by nationalizing the company, causing the British to feel he stole their property, that, in fact, belonged to Iran. In response, the international oil companies reacted together and imposed a worldwide boycott on the country's oil. It succeeded by devasting Iran's economy, cutting its oil revenue from $400 million in 1950 to less than $2 million in 1952. A Dwight Eisenhower-approved first ever CIA coup followed in 1953. It toppled the Mossadegh government, returned Shah Reza Pahlavi to power, and began his 26 year tyrannical rule that, by all accounts, was as repressive as Saddam's and far less socially accommodative.

McQuaig called the coup "a defining moment in the Middle East." It "became a powerful rallying point for anti-Western nationalism. It was embodied in Gamal Abdel Nasser in Egypt whose advocacy of Arab sovereignty and willingness to defy the West made him a hero throughout the region. It also arose in Iran in the 1970s that resulted in the 1979 revolution. It deposed the Shah, installed fundamentalist Islamic rule in his place, and sparked an anti-Western fundamentalist movement across the region.

McQuaig also traced how oil was discovered early in the last century in the Middle East with the international oil cartel moving in to capitalize on it. She detailed the wheeling and dealing that went on with oil giants jousting among themselves and with rulers of the countries whose oil they wanted favorable terms on to exploit. These powerful companies mostly worked in collusion carving up world oil markets and fixing prices among themselves to their advantage.

McQuaig described how three of the giants, Shell, BP and Exxon, met at Achnacarry Castle, Scotland in late summer, 1928 to end price competition and stabilize world markets. Their leaders "hammer(ed) out an agreement in writing that set the course for the international oil order for decades to come," lasting through the early 1970s. It was not to compete, but rather to set quotas, maintain existing market shares, cooperate in sharing facilities, and avoid surplus production to keep prices stable.

They brought in Texaco, Gulf, Mobil and Atlantic to tighten their grip on world markets and eliminate competitors by acquiring them. The idea was to assure world production grew at a steady pace, and oil shortages and gluts were avoided. The cartel was in charge reaping enormous profits from their cozy arrangement. It was especially lucrative in the Middle East where oil is easily accessible and production costs very low. It's hard believe looking back to when Saudi oil sold for $1.80 a barrel, but easy to understand with production costs in the Kingdom at just 8 or 9 cents leaving over $1.70 profit with most of it going to the giants.

Things began changing when Libya's King Idris "was the first to figure out how to avoid becoming yet another powerless country in the oil companies' harem." He began using independents outside the cartel. Current Libyan leader Mu'ammer al Qaddafi took power in 1969 and upped the anti further demanding a 40 cent increase in the country's share of the revenue. He got it and broke the cartel's power to control the oil game. At the same time, he rewrote the rules in place to that time. As McQuaig put it: the "aura of (cartel) invincibility was shattered. Inside the harem, things would never be the same again."

The Harem Takes On the Sisters - The Rise of OPEC

The "Libyan breakthrough" turned out to be prologue for 5 original oil producing member nations (that became 11) to assert control of their own resources through OPEC that was founded in 1960 but had no effective power until the 1970s. McQuaig reviewed its history explaining it "was the brainchild of two men - Juan Pablo Perez Alfonzo in Venezuela and Abdullah Tariki in Saudi Arabia. Alfonzo was given responsibility for his country's oil affairs after 1945 and set "guidlines (to redefine) the traditional (one-way) colonial relationship" the oil cartel had with his country. A 1948 military coup disrupted his plans until he reemerged as oil minister under a newly elected government with much more ambitious plans in mind. His idea was for oil producing states to control the international market for their essential product, and why not. It's their oil. The idea was simple. Individually, the countries were weak, but together they had collective strength.

Abdullah Tariki had similar ideas in Saudi Arabia. He opposed the oil cartel believing oil producing nations should control their own destiny and assert their sovereign rights. Tariki was highly educated and his country's only university trained oil geologist. He became minister of oil affairs for the country's eastern province that was the location of the cartel's Aramco important Ghawar oil field operations. In that capacity, he saw how little revenue Saudis retained, compared to the oil giants, and, as a result, wanted to change the rules. How? By having Arab oil states unite to assert their collective strength.

McQuaig noted, Tariki understood the advantage of making "common cause with Venezuela." He wanted and got a secret gentlemen's agreement between the two countries in 1958 that "constituted the first seed of the creation of OPEC" that was later born in Baghdad in September, 1960 with five original members having 80% of oil exports among them - Saudi Arabia, Venezuela, Iran, Iraq and Kuwait.

It was a beginning but not as auspicious as conceived as in March, 1962 Tariki lost his job as Saudi oil minister. It was after King Faisal decided to tilt more toward Washington and adopt more Aramco favorable oil policies as the way to do it. Tariki was out, and the more accommodating Sheikh Zahi Yamani was in. McQuaig described him as a "charming, urbane, thirty-two year old lawyer....who loved New York and Western culture," and enjoyed lots of it in his new job. Alfonzo in Venezuela lost his job as well, and OPEC would never live up to his vision for it. However, McQuaig explained "it would soon at least ensure that its members were admitted to the feast."

Things then changed dramatically in 1973. Supplies were tight, and the notion that oil producing nations should control their own resources gained prominence in the Middle East. Industry nationalizations began occurring, and in October, 1973 OPEC nations demanded much higher prices. They got them at a time of anger over the West's support for what became known as the "Yom Kippur War." Egypt and Syria fought it against Israel between October 6 - 26 and almost won, save for the help from America that turned Israeli defeat into victory. People old enough to remember recall the energy crunch and long gas lines when prices rose from $3 dollars a barrel in steps to $11.65 and Saudi Arabia cut off shipments to the US until March, 1974.

Angst and rising prices in America affected politics in Washington, but the oil companies loved it. Industry profits rose "beyond anything they'd seen in the previous thirty years (raising the speculation) what role the companies" may have had orchestrating the whole scheme that benefitted them and oil producing states hugely at the expense of oil consuming nations. As borne out later, they played an important role. In the face of recession, demand fell and production was adjusted down to meet it while keeping prices high. They're now around $70 a barrel that in 1973 dollars would only be in the mid-teens and would have to hit $100 a barrel to match the $38 dollar price in 1980.

McQuaig noted, all in all, "as pressure tactics go, the (1973 - 74) oil embargo was pretty mild (and long) gas lines may have been annoying, but nobody died in them." Of greater significance was where the extra revenue ended up. It was in "the wrong part of the world" with it rising from $22 billion in 1973 over fourfold to $90 billion the following year and far higher after the huge additional price hikes following the 1979 Iranian Revolution. It made oil producing states rich but got them to recycle much of their surplus back into Western investments, and in the case of Saudi Arabia, in particular, into huge dollar purchases of US weapons as well.

McQuaig then explained OPEC's reformist zeal waned after Saudi King Faisal's 1975 death that had "far-reaching consequences for both OPEC and the world." New Saudi King Fahd tilted toward a "special relationship" with Washington and became accommodating on the amount of oil it would produce to please his powerful ally responsible for his security. It meant OPEC's power as a unified force was gone.

King of the Vandals

In 428 AD, the title belonged to Geiseric the Lame (or Genseric) who ruled for 50 years and transformed his Germanic tribe into a major Mediterranean power after he invaded North Africa to pillage and plunder. A more notable predator, Alexander the Great, did it a century earlier and others like the Ottomans, Mussolini and Hitler took their turns later on. Fast forward to today and you get the picture about a modern-day plunderer doing the same thing for much greater stakes than Genseric or Alexander could have imagined.

For the past three decades, Washington's attitude toward the Middle East hardened with some in the capitol believing America has a birthright to the region's oil, and we'll send in the Marines any time we choose to claim it. So we have, but with consequences partly anticipated in a 1975 US Congressional Research Service study assessing the difficulties of occupying the region for its resources. McQuaig explained it concluded "seizing oil installations intact, securing them (possibly for years), operating them without the owners' assistance, and guaranteeing safe passage overseas of supplies and petroleum products....would be possible only if there were minimal damage to oil installations and no Soviet armed intervention" intervened, and no armed resistance now.

At first, the strategy was to arm and rely on local powers, like Iran under the Shah and Saudi Arabia, to serve as proxy forces along with neighboring Turkey and Israel. Chomsky notes these nations were to be what Nixon called our "cops on the beat - the local gendarmes" to keep order in the neighborhood. We still have them mainly in Israel and Turkey, but after the 1979 Iranian Revolution the decision was taken to assume a more direct role in managing our regional interests that moved us "a step closer to establishing...military control over the area."

The Carter Doctrine, noted above, threw down the gauntlet in 1980. It led to the establishment of the Rapid Deployment (flexible, quick response) Force (RFD) that became the US Central Command (CENTCOM) in 1983, focused mainly on the oil rich Middle East.

McQuaig also reviewed the rise of Saddam Hussein in Iraq. It began with a violent Baathist party coup in 1963. Saddam took part in it that led to his assuming power in 1968. He was a nationalist unwilling to sell out Iraqi sovereignty to Western interests making him a target from the start. The lord and master of the universe tolerates no outliers, and Saddam was a considerable one. He began nationalizing Iraq's oil fields in 1972 and finished doing it in 1975. The oil cartel saw this as "an unpardonable crime" requiring action that was delayed by the Iran - Iraq war of the 1980s. The Reagan administration saw an opportunity and used Saddam against its greater Iranian enemy hoping they'd both destroy each other, and we'd step in and pick up the pieces.

Once the war ended in 1988, things changed and plans were drawn for Saddam's removal that resulted in the 1991 Gulf war, 12 years of hugely destructive economic sanctions, and the March, 2003 invasion and occupation. US control of the region's oil as the goal was already explained above because it has the mother lode amount of world supply, and by 2010 Muslim states will have about 95% of remaining light oil. Bush administration belligerency has now raised the stakes. It increased Muslim anger against the West, Washington in particular. If it continues growing, the longer term odds are that America's grip on the region will slip and could end up lost.

It's hurtling that way today as the prospect of war with Iran looms that may be a nuclear one. If it happens, it may engulf the whole region and entire Muslim world. CIA's assessment of the prospect is blunt. If the US attacks Iran, Southern Shia Iraq will light up like a candle and explode uncontrollably throughout the country. It will also affect the Shia oil rich part of Saudi Arabia producing a tsunami of Shia rage everywhere that may unite the entire Muslim world in fierce resistance to America that would have very dire consequences when it comes to oil and the interests of Big Oil giants that prefer peaceful negotiations to open confrontation they fear will make them big losers in the end. That's the state of things today thanks to a modern day Genseric. He lasted 50 years. Mr. Bush may not finish out his term in office with growing cries for his head.

Vroooooom

It's McQuaig's last word on the subject referring to Americans insane belief we have a birthright to drive hugely gas-guzzling "18-wheelers that accelerate like racing cars" and shove the world out of our way doing it. She focuses on Bush administration policies in the wake of the 9/11 attack. It changed everything but left the most important issues unaddressed. There's little debate over how centrally important oil is that government and industry focus on but the major media ignore. Controlling world supplies tops the list of strategic aims starting in the Middle East and headquartered in the richest of prizes in Iraq. There's no chance whatever we'd be there if the country's main export was olives instead of oil. Then there are nonsensical issues of removing a dangerous dictator and bringing democracy to the region in the form of a humanitarian intervention. Unmentioned is America does no such interventions, and our aim is to subvert democracy, not bring or support it. That's how the rules of imperial management work.

There are further vital issues unaddressed and unmentionable in public as well. What's the real motive behind America's "war on terrorism" that's quite different from the fictional media account we've gotten since it was launched right after the 9/11 attack. Few in the West know "Enemy Number One" bin Ladin was a CIA asset (not an agent) recruited through Pakistan's ISI to fight the Soviets in Afghanistan in the 1980s, and the idea one sickly man in a cave outwitted the entire $40 - $50 billion-a-year American intelligence establishment is preposterous.

He and Al-Queda have been assets ever since. They're used to scare the public to death and provide a pretext for the Bush administration's permanent war on the world and against the homeland. It's in the form of hugely bloated military budgets and adventurism, oppressive police state laws and loss of civil liberties, the greatest ever wealth transfer in history from the public to the rich, and the systematic dismantling of what remains of an imperfect social state Americans were once proud of nonetheless. That's all sacrificed for the greater aim of unchallengeable world dominance and an unrestrained use of military power maintaining it. It's all for the sake of making the world safe for capital and limitless amounts of energy resources needed to make it hum and grow.

We know incontrovertibly the Afghan and Iraq wars were planned well in advance of September 11, 2001 to kick things off. We were practically signaled they were coming in 1998 by the Project for a New American Century schemers. They stated their wishes for a revolutionary hard line transformation of the nation that would be long in coming "absent some catastrophic and catalyzing event - like a new Pearl Harbor" that, low and behold, happened that fateful day. The "shock and awe" on Afghanistan began four weeks later, moved to Iraq in March, 2003, never stopped, and now everyone's paying for it and targeted if we get in the way.

The danger today is greater than ever as the Bush regime may have more ominous schemes in mind to bail itself out of its disastrous Middle East adventure. It may even be extreme enough to be unthinkable - using another major terror attack some analysts and DHS Secretary Chertoff think is inevitable as a pretext to declare martial law in the name of national security and end a functioning democracy as we know it.

Consider that compared to our claimed birthright to control and consume limitless amounts of the world's dwindling resources and emit enough greenhouse gases to destroy it way in the future that's someone else's problem. McQuaig concluded her important book explaining that "efficiency is our god (but) when it comes to the engine of the modern economy - energy" - efficiency is discarded. Workable solutions abound at least effective enough to mitigate our wasteful consumption habits, but volunteer methods to achieve them won't work. Mandating them along with convincing the public they're important is the only approach that can succeed and will if implemented. If they are, the savings will be dramatic and enormous.

If not, we face an eventual ecological calamity too dire to imagine. In addition, they'll be huge economic costs according to one analyst McQuaig cited. He believed it could cost America 1 - 2% of GDP annually and the world $1 trillion a year at least and likely much more. And it will only get worse in the out years. Global warming is far and away the single greatest environmental threat to the planet, second only to a nuclear winter. Rich and poor alike will be victims because "We're all in the big greenhouse together." It's the moral and survival challenge of our age with no time to waste implementing a solution. Everyone's future depends on it as does ending our resource wars that will destroy us if we don't. "It's (all about) the Crude, Dude," and we better not forget it.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

Also visit his web site at sjlendman.blogspot.com and listen to the Steve Lendman News and Information Hour on The MicroEffect.com Saturdays at noon US central time.