Wednesday, August 17, 2016

IN WHAT GOD DOES AMERICA TRUST, EXACTLY? | NED, the Legal Window of the CIA

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In 2006, Kremlin denounced the proliferation of foreign associations in Russia, some of which would have participated in a secret plan, orchestrated by the National Endowment for Democracy (NED), to destabilise the country. To prevent a “colour revolution”, Vladislav Surkov drew up strict regulation over these non-governmental organizations (NGOs). In the West, this administrative framework was described as a “fresh assault on freedom of association by Putin the “Dictator” and his adviser”.

This policy has been followed by other States who in their turn, have been labelled by the international press as “dictators”.

The US government guarantees that it is working towards “promoting democracy all over the world”. It claims that the US Congress can subsidize NED and that NED can, in turn and wholly independently, help directly or indirectly, associations, political parties or trade unions, working in this sense anywhere in the world. The NGOs being, as their name suggests, “non-governmental” can take political initiatives that ambassadors could not assume without violating the sovereignty of the States that receive them. The crux of the matter lies here: NED and the network of NGOs that it finances: are they initiatives of civil society unjustly repressed by the Kremlin or covers of the US Secret Services caught red-handed in interference?

In order to respond to this question, we are going to return to the origins and function of NED. But our first step must be to analyze the meaning of this official US project: “exporting democracy”.
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The puritans that founded the United States wanted to create a “radiant city” whose light would illuminate the whole world. They considered themselves the missionaries of a political model.

What Democracy?

The US, as a people, subscribes to the ideology of their founding fathers. They think of themselves as a colony that has come from Europe to establish a city obeying God. They see their country as “a light on the mountain” in the words of Saint Mathew, adopted for two centuries by most of their presidents in their political speeches. The US would be a model nation, shining on top of a hill, illuminating the entire world. And all other people in the world would hope to emulate this model to reach their well-being.

For the people of United States, this very naïve belief implies without more that their country is an exemplary democracy and that they have a messianic duty to superimpose it on the rest of the world. While Saint Mathew envisaged propagating faith exclusively through the example of a righteous life, the founding fathers of the United States thought of illumination and propagating their faith in terms of regime change. The English puritans beheaded Charles I before fleeing to the Netherlands and the Americas, then the patriots of the New World rejected the authority of King George III of England, proclaiming the independence of the United States.

Impregnated by this national mythology, the people of the United States do not perceive their government’s foreign policy as a form of imperialism. In their eyes, it is all the more legitimate to topple a government that has the ambition to take the form of a model which is different from theirs and thus evil. In the same way, they are persuaded that due to the messianic mission that has been thrust upon them, they have arrived to impose democracy by force in the countries that they have occupied. For example, at school they learn that GIs brought democracy to Germany. They do not know that history indicates quite the opposite: their government helped Hitler to topple the Republic of Weimar and set up a military regime to fight the Soviets. This irrational ideology prevents them from challenging the nature of their institutions and the absurd concept of a “forced democracy”.
Now, according to President Abraham Lincoln’s formula, “democracy is the government of the people, by the people for the people”.

From this point of view, the United States is not a democracy but a hybrid system where executive power is returned to the oligarchy, while the people limit its arbitrary exercise through legislative and judicial powers that can check it. Indeed, while the people elect Congress and some judges, it is the states of the federation that elect executive power and the latter appoints the high judges. Although citizens have been called to determine their choice of president, their vote on this matter only operates as a ratification, as the Supreme Court pointed out in 2000, in Gore v. Bush. The US Constitution does not recognize that the people are sovereign, because power is divided between them and a federation of states, in other words, between the leaders of the community.

As an aside, we observe that in contrast, the Russian Federation’s Constitution is democratic – on paper at least. It declares: “the holder of sovereignty and the sole source of power in the Russian Federation is its multinational people.” (Title I, Ch. 1, art.3).

This intellectual context explains that the US supports its government when it announces that it wants “to export democracy”, even if, its own constitution signals that it is not one. But it is difficult to see how it could export something it does not possess and does not wish to have at home.

For the last thirty years, this contradiction has been supported by NED and given specific form through destabilizing a number of States. With a smile that a clean conscience blesses upon them, thousands of activists and gullible NGOs have violated the people’s sovereignty.
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A Pluralist and Independent Foundation

In his famous speech on 8 June 1982 before the British Parliament, President Reagan denounces the USSR as “the empire of evil” and proposes to come to the aid of dissidents over there and elsewhere. He declared: “We need to create the necessary infrastructure for democracy: freedom of the press, trade unions, political parties and universities. This will allow people the freedom to choose the best path for them to develop their culture and to resolve their disputes peacefully”.

On this consensual basis of the struggle against tyranny, a commission of bipartisan reflection sponsored the establishment of NED at Washington. This was established by Congress in November 1983 and immediately financed.

The Foundation subsidizes four independent structures that redistribute money abroad, making it available to associations, trade unions and members of the ruling class, and parties on the right and left. They are:

- Free Trade Union Institute (FTUI), today renamed American Centre for International Labour Solidarity (ACILS), managed by the trade union AFL-CIO;
- Centre for International Private Enterprise (CIPE), managed by the US Chamber of Commerce;
- International Republican Institute (IRI), run by the Republican Party;
- National Democratic Institute for International Affairs (NDI), run by the Democratic Party.

Presented in this manner, NED and its four tentacles appear to be anchored in civil society, reflecting social diversity and political pluralism. Funded by the US people, through Congress, they would have worked to a universal ideal. They would be completely independent of the Presidential Administration. And their transparent action could not be a mask for secret operations serving undeclared national interests.

The reality is completely different.
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In 1982, Ronald Reagan established NED in partnership with the United Kingdom and Australia to topple the “Empire of Evil”.

A Drama produced by the CIA, MI6 and ASIS

Ronald Reagan’s speech in London took place in the aftermath of scandals surrounding revelations by Congressional Committees enquiring into the CIA’s dirty-trick coups. Congress then forbids the Agency to organize further coups d’etat to win markets. Meanwhile, in the White House, the National Security Council (NSC) looks to put in place other tools to circumvent this prohibition.

The Commission of Bipartisan Reflection was established prior to Ronald Reagan’s speech, although it only officially received a mandate from the White House afterwards. This means it is not responding to grandiloquent presidential ambitions but precedes them. Therefore, Reagan’s speech is only rhetorical dressing of decisions already taken in principle, and meant to be implemented by the Bipartisan Commission.

The Chair of the Bipartisan Commission was the US Special Representative for Trade, who indicates that she did not envisage promoting democracy but, according to current terminology, “market democracy”. This strange concept is in keeping with the US model: an economic and financial oligarchy imposes its political choices through the markets and a federal state, while parliamentarians and judges elected by the people protect individuals from arbitrary government.

Three of NED’s four peripheral organizations were formed for the occasion. However, there was no need to establish the fourth, a trade union (ACILS). This was set up at the end of the Second World War even though it changed its name in 1978 when its subordination to the CIA was unmasked. From this we can extract the conclusion that the CIPE, IRI and NDI were not born spontaneously but were engineered into being by the CIA.

Furthermore, although NED is an association under US law, it is not a tool of the CIA alone, but an instrument shared with British services (which is why Reagan announced its creation in London) and the Australian services. This key point is often glossed over without comment. However, it is validated by messages of congratulations by Prime Ministers Tony Blair and John Howard during the 20th anniversary of the so-called “NGO”. NED and its tentacles are organs of an Anglo-Saxon military pact linking London, Washington and Canberra; the same goes for Echelon, the electronic interception network. This provision can be required not only by the CIA but also by the British MI6 and the Australian ASIS.

To conceal this reality, NED has stimulated among its allies the creation of similar organizations that work with it. In 1988, Canada is fitted out with a centre Droits & Démocratie, which has a special focus first on Haiti, then Afghanistan. In 1991, the United Kingdom established the Westminster Foundation for Democracy (WFD). The functioning of this public body is modelled on NED: its administration is entrusted to political parties (eight delegates: three for the Conservative Party; three for the Labour Party; and one for the Liberal Party and one for the other parties represented in Parliament). WFD has done a lot of work in Eastern Europe. Indeed in 2001, the European Union is equipped with a European Instrument for Democracy and Human Rights (EIDHR), which arouses less suspicion than its counterparts. This office is EuropAid, led by a high official as powerful as he is unknown: the Dutchman, Jacobus Richelle.

Presidential Directive 77

When US parliamentarians voted for the establishment of NED on 22 November 1983, they did not know that it already existed in secret pursuant to a Presidential Directive dated 14 January.
This document, only declassified two decades later, organizes “public diplomacy” a politically correct expression to designate propaganda. It establishes at the White House working groups within the National Security Council. One of these is tasked with leading NED.

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Henry Kissinger, administrator of the NED. A “representative of civil society”?
Consequently, the Board of Directors of the Foundation is only a transmission belt of the NSC. To maintain appearances, it has been agreed that, as a general rule, CIA agents and former agents could not be appointed to the board of directors.

Things are nonetheless no more transparent. Most high officials that have played a central role in the National Security Council have been NED directors. Such are the examples of Henry Kissinger, Franck Carlucci, Zbigniew Brzezinski, or even Paul Wolfowitz; personalities that will not remain in history as idealists of democracy, but as cynical strategists of violence.

The Foundation’s budget cannot be interpreted in isolation because it receives instructions from the NSC to lead action as part of vast inter-agency operations. It merits mention that funds are released from the International Aid Agency (USAID), without being recorded in NED’s balance sheet, simply for “non-governmentalizing”. Furthermore, the Foundation receives money indirectly money the CIA, after it has been laundered by private intermediaries such as the Smith Richardson Foundation, the John M. Olin Foundation or even the Lynde and Harry Bradley Foundation.

To evaluate the extent of this programme, we would need to combine the NED’s budget with the corresponding sub-budgets of the Department of State, USAID, the CIA and the Department of Defense. Today, such an estimation is impossible.

Nonetheless, certain elements we know give us an idea of its importance. During the last five years, the United States has spent more than one billion dollars on associations and parties in Libya, a small state of 4 million inhabitants. Overall, half of this manna was released publicly by the State Department, USAID and NED; the other half had been secretly paid by the CIA and the Department of Defence. This example allows us to extrapolate the US’s general budget for institutional corruption that amounts to tens of billions of dollars annually. Furthermore, the equivalent programme of the European Union that is entirely public and provides for the integration of US actions, is 7 billion euro per year.

Ultimately, NED’s legal structure and volume of its official budget are only baits. In essence, it is not an independent organization for legal actions previously entrusted to the CIA, but it is a window through which the NSC gives the orders to carry out legal elements of illegal operations.

The Trotskyite Strategy

When it was being set up (1984), NED was chaired by Allen Weinstein, then by John Richardson for four years (1984-88), finally by Carl Gershman (from 1998).

These three men have three things in common:

- They are Jewish;
- They were active in the Trotsky party, Social Democrats USA; and
- They have worked at Freedom House.

There is a logic in this: hatred of Stalinism led some Trotskyites to join the CIA to fight the Soviets. They brought with them the theory of global power, by transposing it to the “colour revolutions” and to “democratisation”. They have simply displaced the Trotsky vulgate by applying it to the cultural battle analysed by Antonio Gramsci: power is exercised psychologically rather than by force. To govern the masses, the elite has to first inculcate an ideology that programmes their acceptance of the power that dominates it.

The American Centre for the Solidarity of Workers (ACILS)

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Known also as Solidarity Centre, ACILS, a trade union branch of NED, is easily its principal channel. It distributes more than half the Foundation’s donations. It has replaced the previous organizations that served during the Cold War to organize non-communist trade unions in the world, from Vietnam to Angola, by-passing France and Chile.

The fact trade unions were chosen to cover this CIA programme is a rare perversity. Far from the Marxist slogan, “Proletariats from all countries – unite”, ACILS brings together US working class trade unions in an imperialism that crushes workers in other countries.

This subsidiary was led by Irving Brown, a flamboyant personality, from 1948 until his death in 1989.

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In 1981, Irving Brown places Jean-Claude Mailly as an assistant to André Bergeron, the Secretary General of the Force Ouvrière (FO). The latter will acknowledge financing its activities thanks to the CIA. In 2004, Mailly becomes the Secretary General of the FO.
Some authors swear that Brown was the son of a white Russian, a companion of Alexander Kerensky. What we know for sure, is that he was an OSS agent, (i.e. an agent of the US intelligence service during the Second World War); and he participated in establishing the CIA and NATO’s Gladio network. However, he refused to lead it, preferring to focus on his area of expertise, trade unions. He was based at Rome, then Paris and never at Washington. So he had a significant impact on Italian and French public life. At the end of his life, he also boasts that he did not stop directing the French trade union, Force Ouvrière behind the scenes, and that he pulled the strings of the Student trade union UNI (where the following are active: Nicolas Sarkozy and his ministers François Fillon, Xavier Darcos, Hervé Morin and Michèle Alliot-Marie, as well as the President of the National Assembly, Bernard Accoyer and the President of the majoritarian parliamentary group, Jean-François Copé), and to have personally formed on the left, members of a Trotsky-ite break away group which included Jean-Christophe Cambadelis and the future Prime Minister Lionel Jospin.

At the end of the nineties, members of the confederation AFL-CIO requested accounts of ACILS’s actual activity, while its criminal character had been fully documented in a number of countries. One could have thought that things would have changed after this great outpouring. Nothing of the sort occurs. In 2002 and 2004, ACILS has participated actively in a failed coup d’Etat in Venezuela to oust President Hugo Chavez and in a successful one in Haiti in toppling Jean-Bertrand Aristide.

Today, ACILS is directed by John Sweeney, the former president of the confederation AFL-CIO, which itself also originates from the Trotskyite Party - Social Democrats USA.

The Centre for International Private Enterprise (CIPE)

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CIPE focuses on the dissemination of liberal capitalist ideology and the struggle against corruption.

The first success of CIPE: transforming in 1987 the European Management Forum (a club of CEOs of big European companies) into the World Economic Forum (the club of transnational ruling class). The big annual meeting of the world’s economic and political who’s who in the Davos Swiss ski resort contributed to creating a class membership that transcended national identity. CIPE makes sure that it does not have any structural ties with the Davos Forum, and it is not possible – for the moment - to prove that the World Economic Forum is an instrument of the CIA. On the contrary, the heads of Davos would have much difficulty explaining why certain political leaders have chosen their Economic Forum as the locus for acts of the highest importance if there were not operations planned by the US NSC. For example:

- 1988: it is at Davos – not the UN - that Greece and Turkey made peace.
- 1989: it is at Davos that the two Koreas on the one hand held their first summit at the ministerial level and the two Germany’s on the other hand held their first summit on the reunification.
- 1992: it is again at Davos that Frederik de Klerk and the freed Nelson Mandela come together to present their common project for South Africa for the first time abroad.
- 1994: still more improbable, it is at Davos, after the Oslo Accord, that Shimon Peres and Yasser Arafat come to negotiate and sign its application to Gaza and Jericho.

The connection between Washington and the Forum is notoriously through Susan K. Reardon, former director of the Association of Professional Employees of the Department of State, having become director of the Foundation of the US Chamber of Commerce which manages CIPE.

The other success of the Centre for International Private Business is Transparency International. This “NGO” was officially established by Michael J. Hershman, an officer of US military intelligence. He is furthermore, a CIPE director and today Head of Recruitment of FBI informants as well as Managing Director of the private intelligence service Fairfax Group.

Transparency International is first and foremost a cover for economic intelligence activities by the CIA. It is also a media tool to compel states to change their legislation to guarantee open markets.

To mask the origin of Transparency International, the CIPE makes and appeal to the savoir-faire of the former press officer of the World Bank, the neo-conservative Frank Vogl. The latter had put in place a Committee of individuals that have contributed to creating the impression that it is an association born of civil society. This window-dressing committee is led by Peter Eigen, former World Bank Director in East Africa. In 2004 and 2009, his wife was the SPD candidate for the Presidency of the German Federal Republic.

Transparency International’s work serves US interests and cannot be relied upon. Thus in 2008, this pseudo NGO denounced that PDVSA, Venezuela’s public oil company, was corrupt; and on the basis of false information, placed it last in its global rankings of public companies. The goal was evidently to sabotage the reputation of a company that constitutes the economic foundation of the anti – imperialist policy of President Hugo Chavez. Caught in the act of poisoning, Transparency International refused to respond to questions from the Latin American press and to correct its report. Furthermore, it is astonishing when we recall that Pedro Carmona, the CIPE correspondent at Venezuela, had been briefly put in power by the USA, during a failed coup d’Etat in 2002 to oust Hugo Chavez.

To some extent, focussing attention on economic corruption enables Transparency International to mask NED’s activities: corrupting the ruling elite for Anglo-Saxon advantage.

The International Republican Institute (IRI) and the National Democratic Institute for International Affairs (NDI)

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The goal of IRI is to corrupt the parties of the Right, while the NDI deals with left wing parties. The first is chaired by John McCain, the second by Madeleine Albright. So these two personalities should not be considered ordinary politicians, a leader of the opposition and a retired dean. Rather, as active leaders of the NSC programmes.

To contextualize the principal political parties in the world, IRI and NDI have renounced their control over l’Internationale libérale and l’Internationale socialiste. They have thus created rival organizations: the International Democratic Union (IDU) and the Alliance for Democrats (AD). The first is chaired by the Australian, John Howard. The Russian, Leonid Gozman of Just cause (Правое дело) is its vice-president. The second is led by the Italian Gianni Vernetti and co-chaired by the Frenchman, François Bayrou.
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IRI and NDI are also supported also by political foundations linking them to big political parties in Europe (six in Germany, two in France, one in the Netherlands and another one in Sweden).
Furthermore, some operations have been sub-contracted to mysterious private companies such as Democracy International Inc which has organized the recent rigged elections in Afghanistan.
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Tom McMahon: former vice head of Rahm Emanuel and currently head of NDI. He came to France to organise the primaries of the Socialist Party.
All this leaves a bitter taste. The US has corrupted most of the big political parties and trade unions all over the world. For sure, the “democracy” that they promote consists in discussing local questions in each country – hardly ever societal questions such as women’s rights or gay rights – and it is aligned with Washington on all international issues. The electoral campaigns have become shows where NED picks the cast by providing the necessary financial means to some and not to others. Even the notion of variation has lost meaning since NED promotes alternatively one camp or another provided it follows the same foreign and defense policy.

Today, in the European Union and elsewhere, one laments the crisis of democracy. Those responsible for this are clearly NED and the US. And how do we classify a regime such as the US regime where the Leader of the Opposition, John McCain, is in fact a leader of the National Security Council? Surely not as a democracy.

The Balance of the System

Over time, USAID, NED, their satellite institutions and their intermediary foundations have produced an unwieldy and greedy bureaucracy. Each year, when Congress votes on the NED’s budget, animated debates arise on the inefficiency of this tentacular system and rumours that funds have been appropriated to benefit US politicians in charge of administering them.

To achieve sound management, a number of studies have been commissioned to quantify the impact of these financial flows. Experts have compared the sums allocated in each state and the democratic ranking of these states by Freedom House. Then they calculated how much they needed to spend (in dollars) per inhabitant to improve the democratic ranking of a State by a point.

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Tomicah Tillemann, adviser to Hillary Clinton for civil society and emerging democracies, supervises NED’s apparatus in the State Department.
Of course, all this is only an attempt at self-justification. The idea of establishing a democratic mark is not scientific. In some ways, it is totalitarian, for it assumes that there is only one form of democratic institutions. In other ways, it is infantile for it established a list of disparate criteria which it will measure with fictional coefficients to transform a social complexity into a single figure.

Furthermore, the vast majority of these studies conclude that it is a failure: although the number of democracies in the world has increased, there would be no link between democratic progress and regression on the one hand and the sums spent by the NSC on the other. On the contrary, it confirms that the real objectives have nothing to do with those indicated. However, those running USAID cite a study by Vanderbilt University, according to which only the NED operations co-financed by USAID have been effective because USAID manages its budget rigorously. Thus it is not surprising that this individual study has been financed by …. USAID.

Be that as it may, in 2003, on its twentieth anniversary, NED drew up a political account of its action, evidencing that it has financed more than 6,000 political and social organizations in the world, a figure that has not stopped increasing from that time. NED claims to have single-handedly set up the trade union Solidarnoc in Poland, Charter 77 in Czechoslovakia and Otpor in Serbia. It was pleased that it had created from scratch Radio B92 or the daily Oslobodjenje in the former Yugoslavia and a series of new independent media in the “liberated” Iraq.
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In December 2011, Egyptian authorities search the offices of the NDI and IRI in Cairo. The documents that were seized are most important to understand US interference since the "nest of spies" was removed from Teheran in 1979. Charged with spying, the NED leaders are tried. Here: Robert Becker (Director of NDI, Cairo) at the opening of the trial. The documents prove that NED is wholly responsible for and manipulated the pseudo revolution that took place in Tahrir Square. This resulted in more than 4,000 deaths to hoist the Muslim Brotherhood to power.

Changing Cover

After experiencing global success, the rhetoric of democratization no longer convinces. By using it in all circumstances, President George W. Bush has depleted it of meaning. Noone can seriously claim that the subsidies paid by NED will make international terrorism go away. The claim that the US troops have toppled Saddam Hussein to offer democracy to Iraqis, cannot be asserted more persuasively.

Furthermore, citizens all over the world that fight for democracy have become distrustful. They now understand that the aid offered by NED and its tentacles is in fact aimed at manipulating and snaring their country. This is why they are increasingly refusing the contributions “with no strings or sticks attached” offered to them.

Also, US heads from different channels of corruption have tried to silence the system once again. After the CIA dirty tricks and the transparency of NED, they envisage creating a new structure that would replace a discredited package. It would not be managed by trade unions, management and the two big parties, but by multinationals on the model of the Asia Foundation.

In the eighties, the press revealed that this organization was a CIA cover to fight communism in Asia. It was then reformed and its management was entrusted to multinationals. (Boeing, Chevron, Coca-Cola, Levis Strauss etc…). This re-styling was enough to give the impression that it was non- governmental and respectable – a structure that never stopped serving the CIA. After the dissolution of Russia, it was replicated: the Eurasia Foundation, whose mandate extends covert action to the New Asian states.

Another issue that sparks debate is if the contributions for “promoting democracy” would have to take the exclusive form of contracts to carry out specific projects or subsidies with no duty to reach targets. The first option offers better legal cover but the second is a much more efficient tool of corruption.

Given this panorama, the requirement laid down by Vladimir Putin and Vladisl Surkov to regulate the funding of NGOs in Russia is legitimate even if the bureaucracy they have set up for doing so is outrageous and difficult to satisfy. The instrument of NED, put in place under the authority of the US NSC not only fails to support attempts at democracy all over the world but poisons them.
Translation Anoosha Boralessa | Source Оdnako (Russia)

Sunday, August 14, 2016

The Catastrophe Al Nakba How Palestine Became Israel



Cover of trifold brochure: How Palestine Became Israel


If Americans Knew
 
Last Updated April 2013
In the late 1800s a small, fanatic movement called “political Zionism” began in Europe. Its goal was to create a Jewish state somewhere in the world. Its leaders settled on the ancient and long-inhabited land of Palestine for the location of this state.1
Palestine's population at this time was approximately ninety-six percent non-Jewish (primarily Muslim and Christian).2
Over the coming decades Zionist leaders used various strategies to accomplish their goal of taking over Palestine:
  1. Encouraging Jewish immigration to Palestine, partly through the invention of such deceptive slogans as "a land without a people for a people without a land," when, in fact, the land was already inhabited. Since the majority of Jews were not Zionists until after WWII, Zionists used an array of misleading strategies, including secret collaboration with the Nazis, to push immigration.3
  2. Convincing a “Great Power” to back this process. By turn, Zionists approached the Ottomans, the British, and the U.S. to further their cause. While the Ottomans turned them down, the British (being promised that American Zionists would push the U.S. to enter World War I on the side of England) eventually acceded, as did the U.S. (due to concerns of politicians like Harry Truman that they would lose elections otherwise).4
  3. Buying up the land (sometimes through subterfuges), proclaiming it Jewish for all eternity, and refusing to allow non-Jews to live or work on the purchased land. This was called "redeeming" the land and was financed by a variety of means, including by such wealthy banking families as the Rothschilds.5
  4. Historic Palestine, the land now occupied by the state of Israel, was a multicultural society. During the 1947-49 War, Israel committed at least 33 massacres and expelled over 750,000 Palestinians.
    Historic Palestine, the land now occupied by the state of Israel, was a multicultural society. During the 1947-49 War, Israel committed at least 33 massacres and expelled over 750,000 Palestinians. (Click graph for large version.)
  5. Violence, if such financial dispossession should fail or prove too slow – as it did.6
In the 1930s, Jewish land ownership had increased from approximately 1% to just over 6% of the land, and violence had increased as well. With the emergence of several Zionist terrorist gangs (whose ranks included a number of future Prime Ministers of Israel), there was violent conflict. Numerous people of all ethnicities were killed – then, as now, the large majority of them Christian and Muslim Palestinians.7

The Catastrophe

This growing violence culminated in Israel's ruthless 1947-49 "War of Independence,"in which at least 750,000 Palestinian men, women, and children were expelled from their homes by numerically superior Israeli forces – half before any Arab armies joined the war. This massive humanitarian disaster is known as ‘The Catastrophe,’ al Nakba in Arabic.8
Palestinian refugees
Zionist forces committed 33 massacres and destroyed 531 Palestinian towns. Author Norman Finkelstein states: “According to the former director of the Israeli army archives, ‘in almost every village occupied by us during the War... acts were committed which are defined as war crimes, such as murders, massacres, and rapes’...Uri Milstein, the authoritative Israeli military historian of the 1948 war, goes one step further, maintaining that ‘every skirmish ended in a massacre of Arabs.’”9
Count Folke Bernadotte, a former official of the Swedish Red Cross who saved thousands of Jews during World War II and was appointed U.N. mediator in Palestine, said of the refugees: "It would be an offence against the principles of elemental justice if these innocent victims of the conflict were denied the right to return to their homes.”10 Bernadotte was assassinated by a Zionist organization led by future Israeli Prime Minister Yitzhak Shamir.11

Injustice Continues

Over the 60 years since Israel’s founding on May 14, 1948, this profound injustice has continued. Palestinian refugees are the largest remaining refugee population in the world.
Palestinian child refugees.
1.3 million Palestinians live in Israel as “Israeli citizens,” but despite their status as citizens, they are subject to systematic discrimination. Many are prohibited from living in the villages and homes from which they were violently expelled, and their property has been confiscated for Jewish-only uses. In Orwellian terminology, Israeli law designates these internal refugees as “present absentees.”12
In 1967 Israel launched its third war and seized still more Palestinian (and other Arab) land. Israel also attacked a U.S. Navy ship, the USS Liberty, killing and injuring over 200 Americans, an event that remains largely covered-up today, despite efforts by an extraordinary array of high-level military officers and civilian officials to expose it.13
Israel occupied the West Bank and Gaza Strip – the final 22% of mandatory Palestine – and began building settlements for Jewish Israelis on land confiscated from Palestinian Muslims and Christians. It has demolished more than 24,145 Palestinian homes since 1967. In 2005 Israel returned Gazan land to its owners, but continues to control its borders, ports, and air space, turning Gaza into a large prison, where 1.5 million people are held under what a UN Human Rights Commissioner described as “catastrophic” conditions.
Over 7,000 Palestinian men, women, and children are imprisoned in Israeli jails under physically abusive conditions (many have not even been charged with a crime) and the basic human rights of all Palestinians under Israeli rule are routinely violated. Some prisoners tortured by Israel have been American citizens. In the violence that began in fall, 2000 through Feb. 5, 2009, Israeli forces killed 6,348 Palestinians; Palestinian resistance groups killed 1,072 Israelis. Israel’s military, the fourth most powerful on earth possesses hundreds of nuclear weapons.14

American Involvement

American taxpayers give Israel more than $8 million per day, even though surveys reveal that 73% of Americans oppose taking sides on Israel-Palestine. Because of Israel’s powerful US lobby, Congress gives far more money to Israel than to all of sub-Saharan Africa put together.15 In its 60 years of existence, Israel, the size of New Jersey, has received more U.S. tax money than any other nation. While most Americans are unaware of these facts (studies have shown that media report on Israeli deaths at rates up to 13 times greater than they report on Palestinian deaths) governmental actions are making Americans responsible for a continuing catastrophe of historic proportions – and which is, in addition, creating extremely damaging enmity to the US itself. Israel partisans have played a significant role in promoting U.S. attacks on Iraq and Iran.16
As more Americans learn the facts, there is a growing bipartisan, multi-ethnic movement to counter Israel’s US lobby, which has long held a vicegrip on American Mideast policies.

Palestinian Loss of Land 1946-2005

four maps of shrinking Palestine
“Confusion about the origins of the conflict all too often has obscured Americans’ understanding of its true dimension. It began as a conflict resulting from immigrants struggling to displace the local majority population. All else is derivative from this basic reality.”
– Donald Neff, former Senior Editor, Time Magazine, Fallen Pillars: U.S. Policy towards Palestine and Israel since 1945
“[T]he story of 1948... is the simple but horrific story of the ethnic cleansing of Palestine... Retrieving it from oblivion is incumbent upon us, not just as a greatly overdue act of historiographical reconstruction or professional duty; it is... the very first step we must take if we ever want reconciliation to have a chance, and peace to take root, in the torn lands of Palestine and Israel.”
– Ilan Pappe, Israeli Historian, The Ethnic Cleansing of Palestine
“The Palestinian Holocaust is unsurpassed in history. For a country to be occupied, emptied of its people, its physical and cultural landmarks obliterated, its destruction hailed as a miraculous act of God, all done according to a premeditated plan, meticulously executed, internationally supported, and still maintained today...”
– Dr. Salman Abu-Sitta, Palestine Right Of Return, Sacred, Legal, and Possible

Recommended Books:

  • George W, Ball & Douglas B. Ball, The Passionate Attachment
  • Mazin Qumsiyeh, Sharing the Land of Canaan
  • Greg Philo and Mike Berry, Israel and Palestine: Competing Histories
  • Paul Findley, They Dare to Speak Out
  • Ali Abunimah, One Country
  • Jonathon Cook, Blood and Religion
  • Ilan Pappe, The Ethnic Cleansing of Palestine
  • Israel Shahak, Jewish Fundamentalism in Israel
  • Donald Neff, Fallen Pillars
  • Salman Abu-Sitta, Palestine Right of Return, Sacred, Legal, and Possible
  • Robert John & Sami Hadawi, Palestine Diary 1914-1945
  • Kathleen Christison, Perceptions of Palestine
  • John W. Mulhall, CSP, America and the founding of Israel
  • Charles D. Smith, Palestine and the Arab-Israeli Conflict
  • Nur Masalha, Expulsion of the Palestinians
  • Stephen Green, Taking Sides
  • Noam Chomsky, Fateful Triangle
  • Sami Hadawi, Bitter Harvest
  • Virginia Tilley, The One State Solution
  • Norman Finkelstein, Beyond Chutzpah
  • John Mearsheimer & Stephen Walt, The Israel Lobby

Selected Websites

IfAmericansKnew.org
PalestineRemembered.com

http://www.ifamericansknew.org/history/ref-nakba.html

Monday, August 8, 2016

AMERICA AND WORLD ENLIGHTENMENT CAN HAPPEN


The Greening of America is a 1970 book by Charles A. Reich. It is a paean to the counterculture of the 1960s and its values. Excerpts first appeared as an essay in the September 26, 1970 issue of The New Yorker. The book was originally published by Random House.
The Greening of America is a 1970 book by Charles A. Reich. It is a paean to the counterculture of the 1960s and its values. Excerpts first appeared as an essay in the September 26, 1970 issue of The New Yorker. The book was originally published by Random House.

The Greening of America – It’s Final Act is Approaching


In 1970, Charles Reich wrote The Greening Of America, a book that profoundly influenced and inspired me at 36 year’s old, for Reich predicted a revolution of the individual and culture that would be a revolution of the new generation against the corporate state ~ and it would change the political structure as its final act. I believe it’s final act is fast approaching and this revolution will not require violence to succeed ~ it will only require great courage and a legitimate anti-war movement which will fully expose the folly of our present fear based and militarized world economy: Allen L Roland, PhD

Of all the qualities of human beings that are injured, narrowed, or repressed in the Corporate State, it is consciousness, the most precious and the most fragile, that suffers the most. – Charles A. Reich
It was 1970 and the country had seemingly lost hope with the loss of its political and spiritual leaders ~
  •  JFK assassinated in 1963
  • RFK assassinated in June, 1968
  • MLK assassinated in August, 1968
Richard Nixon was sworn in as president in January 1970 but the country had never fully recovered from the loss of JFK, RFK and Martin Luther King, Jr ~ we were in a state of moral apathy and perfect fodder for Nixon and Kissinger to manipulate our collective fears by bombing Cambodia and then Nixon increased domestic spying.

 I, like many Americans sensed the country’s moral vacuum, and personally was more than ready for another choice versus buying and selling stocks as an Investment Banker. Our country had surrendered to the dark side, the military-Industrial complex was in full control and Nixon’s paranoia was already becoming evident. We had lost our soul bearings and a collective alarm for light workers was sounded ~ Charles Reich’s The Greening of America was part of that call.
The corporate state is an immensely powerful machine, ordered, legalistic, rational, yet utterly out of human control, wholly and perfectly indifferent to any human values.   Charles A. Reich
I heard the inner call in 1971, read Reich’s book, opened my heart in relationship and fell into a rabbit hole of soul consciousness beneath my deepest fears and unworthiness and also realized that I had a part to play in this Revolution of both the individual and culture. My task was to completely surrender to love, begin to see through different eyes and share what I saw through both my writings and transformative work with individuals as a heart centered therapist.

 My PhD dissertation in 1998 was the Unified Field where I demonstrated that the basic underlying and uniting force of the universe is a psychic energy field of love and soul consciousness (The Unified Field) which lies not only beyond time and space but also beneath our deepest fears and whose principle property is the universal urge to unite.

I have had many personal experiences of the sensory sensation of being in the Unified Field of love and soul consciousness that exists not only beyond time and space but also beneath our deepest fears but this one clearly stands out ~ for it was a matter of life and death and it became the foundation of my belief in this state of consciousness that lies beneath our deepest fears. 

 I call it the Final Option which I experienced as a Navy carrier pilot in 1961, on the South China Sea, and where I faced, totally surrendered to and went through my deepest crushing fear of the unknown ~ and broke through to an all knowing and fearless state of soul consciousness that existed not only beyond time and space but obviously deepest within myself.  
 F3H DEMON BEING LAUNCHED OFF CARRIER
F3H DEMON BEING LAUNCHED OFF CARRIER

See VT article ~ 

My whole life has been a journey, a quest, to find a lost little boy within myself who once knew, and longed to share the truths that I am now sharing with you; a 4 year old boy who profoundly experienced at the deepest level within himself, a love and joy that indelibly connected him to everything around him. That experience was my first awareness of a Unified Field of love and soul consciousness which I was an integral part of ~ and I fully surrendered to the bliss of being in that Field of love and soul consciousness and never forgot it.  See VT Article

 Just as becoming a Navy Fighter pilot was an important part of my destiny and brought me to the San Francisco Bay area ~ my precognitive vision of the Golden Gate Bridge was a door that was opened to me as a young child and not only let the future in but proved to me that this state of love and soul consciousness not only existed beyond time and space but was also the sole constant of the universe. See VT article 
 

Which brings me to our current social revolution in 2016 which has revealed  an anti-war movement against the corporate state, initiated by Bernie Sanders and carried on by Jill Stein and the Green Party which will hopefully eventually grind to a halt the gears of war and enlist millions of our youth in its implementation.

We have once again reached a state of choice less Apathy, similar to what we felt in 1970, but now it’s time to implement the final act of this revolution particularly with two such unpopular candidates running for President in 2016 ~ the time for true change is in the air.

Let’s summarize the The Danger of a Clinton or Trump Presidency in a recent Real News interview of Col. Lawrence Wilkerson with Paul Jay as they discuss Hillary Clinton’s militarist track record and Donald Trump’s bellicose political theatre rhetoric. 25 Minute video

 Excerpts from this must see interview;

 Trumps principle purpose is to destroy the Republican Party and he is succeeding ” ~ Wilkerson on Trump

 “I don’t think Trump really wants the job and his agenda is Israel first and America second ” ~ Wilkerson on Trump

 “The war instrument is the first instrument of choice with Hillary versus Diplomacy and that bothers me”  ~ Wilkerson on Clinton

 Her foreign policy is straight out of the neocon playbook where the war option is foremost ~ she’s a war president ” ~ Wilkerson on Clinton

 “Mike Pense is a scary proposition and many of his positions scare  the bejesus out of me ” ~ Wilkerson on Mike Pense


Paul Fay’s last comment of interview ~ ” Whoever wins the election, there better be a massive anti-war movement already in place ” ~ to which I add we are already in the process of accomplishing this with Jill Stein and the Green Party but we desperately need her progressive voice in the upcoming Presidential debates.
There is a revolution coming. It will not be like revolutions of the past. It will originate with the individual and with culture . . Charles A. Reich
My good friend and fellow columnist Doug Childers perhaps offers the most insightful comment regarding our current presidential  election ~ which I am reprinting in full;
“Right on Allen!  I don’t grudge Bernie for stepping out. I don’t know what happened behind the scenes, but he raised political consciousness in this country to an unprecedented level and started a political revolution I never thought I’d see here

Those who paid attention just witnessed a corporate coup in the democratic primary. The oligarchy, operating through the DNC and corporate media, and colluding with the Clinton campaign, stole an election, defrauded the American people of their rightful democratic process, and is intent on installing Hillary, their corrupt hopeful successor to their current servant Barak Obama.(I voted for him the first time and learned a new level of discernment.) 

Now this united corporate system is using Donald Trump as a bogeyman scare-card to frighten people into going along with the program, and millions are becoming unwitting accomplices to the theft of their own democracy, imagining they are preventing the rise of a new fascist state.
 They don’t realize that what we now have, hidden behind the facade of democracy, and what Hillary will further empower, just as Obama has, is worse than anything Trump could accomplish.
 The media, and now their frightened citizen cheerleaders and apologists for Hillary, wants to convince us that our only choice is between an inflated narcissist desperate for attention, and a calculating sociopath committed to handing more control over the world to the corporate military state. 

 If people were willing to face this ugly reality and realize the real choice we face is to either vote our conscience or betray it we would begin to actually become a real democracy and a people worthy of it. 

 I’ve been posting a quote from time to time that you’ve probably once heard,  from Edward R. Murrow: “A nation of sheep will in time breeda government of wolves.”
 And that’s how we got where we are ~  Keep up the good work!”

Doug

In short, Charles Reich’s The Greening of America in 1970 predicted a social revolution unlike any others in our past, originating from individuals, such as myself and others, as well as all classes and cultures. 

This revolution will indeed begin to change the political structure in 2016 by challenging the corporate state ~ and the new generation propelling this change, as dramatically demonstrated by the Sanders campaign, are the Millennials who are now carrying the glowing Olympic torch of true political change as represented by Black Lives Matter and the populist, anti-war theme of the Green Party’s Jill Stein.

And ironically in 2016, the rich and poor classes and corporate states have gathered, as we are now currently witnessing at the Olympic Games in Rio de Janeiro ~ while looming high above is the ultimate social revolutionist Christ the Redeemer, created by Polish-French sculptor Paul Landowski  in 1931.

98 Feet tall and standing 2300 feet above the city and the Olympic stadium, its sandstone hands outstretched and seemingly imploring us to Love one another but in a far different tone ~ for now it adds, with the advent of the nuclear age as well as the atomic bombings of Hiroshima and Nagasaki in 1945, Love one another or you perish.
rio
 And it is Teilhard de Chardin, the Jesuit priest, paleontologist and explorer of the soul, whose life’s work was the reinterpretation of Christianity in the light of evolution, as well as my mentor from beyond time and space ~ who also stands impatiently at the summit of man’s quest for the ultimate truth proclaiming to all that god is love.

 As a fellow social revolutionist and explorer of the soul my evolutionary task has been to demonstrate through my work and writing that this love is indeed the long sought for Unified Field ~ a state of love and soul consciousness that lies not only beyond time and space but also beneath our deepest fears and whose principle property is the universal urge to unite.

 This is the ultimate inner revolution and spiritual greening of America and it is already underway.
“Therefore, despite all checks and improbabilities, we are inevitably approaching a new age, in which the world will throw off its chains and at last give itself up to the power of its inner affinities. Either we must doubt the value of everything around us, or we must utterly believe in the possibility, and I should add, in the inevitable consequences of universal love.”  Teilhard de Chardin

We are all in a sense Hibakushas (Moral survivors of the August,1945  Atomic bombings of Hiroshima and Nagasaki>>http://www.veteranstoday.com/2016/08/07/the-greening-of-america-its-final-act-is-approaching/<<

Allen L Roland, PhD  Heart centered spiritual consultant and advisor Allen L Roland can be contacted at allen@allenroland.com Allen is also a lecturer and writer who shares a weekly political and social commentary on his web log and website allenroland.com. He is also featured columnist on Veterans Today and is a featured guest on many radio and Television programs

Tuesday, August 2, 2016

RYAN ALAN WILSON & THE HEINZ ENDOWMENT TOO | WHEN THE MAN COMES TO COLLECT THE RENT

WHEN THE MAN COMES TO COLLECT THE RENT

They told me that life
wouldn't be easy
Yet no one told me it would
be this hard
Growing up in between
A rock
And the tail end of a broken
boulevard

A sandwich of emotions
Open
Drooling on the cutting room
floor
Sutured and silent from
bleeding
There was only one
But, I could still see two
doors

Held aloft the rising
Foam of a coffee spent
Like, who's gonna care
about me

When the man comes to
collect the rent

Ryan Alan Wilson, 24 Jul 2016 copyright RAW

HEINZ ENDOWMENT TIME TO SUPPORT THE ARTISTS AND ARTS IN THE USA,
THANK YOU TERESA HEINZ ET AL

COLLAPSING FRAUDULENT MONEY SYSTEM MEANS FREEDOM TO CREATE?!! RYAN ALAN WILSON POET COPYRIGHT

 IN JUSTICE WE SEEK

Stolen afar
 
From a copycat color
 
 In justice we seek, sleep
 
Falling in Tossed around
 
Stalling
 
On weak coffee, so thin
 
See through
 
Where have you been?
 
Teaching
 
The solace seekers
 
Peeking 

Around corners
 
Dealing with sheep

DE-DOLLARIZATION CONTINUES PAST THE HICCUP ECONOMIC COLLAPSE IN THE AUGHTS

The Global De-dollarization and the US Policies

34234234In its quest for world domination, which the White House has been pursuing for more than a century, it relied on two primary tools: the US dollar and military might. In order to prevent Washington from establishing complete global hegemony, certain countries have recently been revising their positions towards these two elements by developing alternative military alliances and by breaking with their dependence on the US dollar.

Until the mid-twentieth century, the gold standard was the dominant monetary system, based on a fixed quantity of gold reserves stocked in national banks, which limited lending. At that time, the United States managed to become the owner of 70% of world’s gold reserves (excluding the USSR), therefore it pushed its weakened competitor, the UK, aside resulting to the creation of the Bretton Woods financial system in 1944. That’s how the US dollar became the predominant currency for international payments.

But a quarter century later this system had proven ineffective due to its inability to contain the economic growth of Germany and Japan, along with the reluctance of the US to adjust its economic policies to maintain the dollar-gold balance. At that time, the dollar experienced a dramatic decline but it was saved by the support of rich oil exporters, especially once Saudi Arabia began to exchange its black gold for US weapons and support in talks with Richard Nixon. As a result, President Richard Nixon in 1971 unilaterally ordered the cancellation of the direct convertibility of the United States dollar to gold, and instead he established the Jamaican currency system in which oil has become the foundation of the US dollar system. Therefore, it’s no coincidence that from that moment on the control over oil trade has become the number one priority of Washington’s foreign policy. In the aftermath of the so-called Nixon Shock the number of US military engagements in the Middle East and other oil producing regions saw a sharp increase. Once this system was supported by OPEC members, the global demand for US petrodollars hit an all time high. Petrodollars became the basis for America domination over the global financial system which resulted in countries being forced to buy dollars in order to get oil on the international market.

Analysts believe that the share of the United States in today’s world gross domestic product shouldn’t exceed 22%. However, 80% of international payments are made with US dollars. As a result, the value of the US dollar is exceedingly high in comparison with other currencies, that’s why consumers in the United States receive imported goods at extremely low prices. It provides the United States with significant financial profit, while high demand for dollars in the world allows the US government to refinance its debt at very low interest rates.

Under these circumstances, those heding against the dollar are considered a direct threat to US economic hegemony and the high living standards of its citizens, and therefore political and business circles in Washington attempt by all means to resist this process.This resistance manifested itself in the overthrow and the brutal murder of Libyan leader Muammar Gaddafi, who decided to switch to Euros for oil payments, before introducing a gold dinar to replace the European currency.

However, in recent years, despite Washington’s desire to use whatever means to sustain its position within the international arena, US policies are increasingly faced with opposition. As a result, a growing number of countries are trying to move from the US dollar along with its dependence on the United States, by pursuing a policy of de-dollarization. Three states that are particularly active in this domain are China, Russia and Iran. These countries are trying to achieve de-dollarization at a record pace, along with some European banks and energy companies that are operating within their borders.
The Russian government held a meeting on de-dollarization in spring of 2014, where the Ministry of Finance announced the plan to increase the share of ruble-denominated contracts and the consequent abandonment of dollar exchange. Last May at the Shanghai summit, the Russian delegation manged to sign the so-called “deal of the century” which implies that over the next 30 years China will buy $ 400 billion worth of Russia’s natural gas, while paying in rubles and yuans. In addition, in August 2014 a subsidiary company of Gazprom announced its readiness to accept payment for 80,000 tons of oil from Arctic deposits in rubles that were to be shipped to Europe, while the payment for the supply of oil through the “Eastern Siberia – Pacific Ocean” pipeline can be transferred in yuans. Last August while visiting the Crimea, Russia’s President Vladimir Putin announced that “the petrodollar system should become history” while “Russia is discussing the use of national currencies in mutual settlements with a number of countries.” These steps recently taken by Russia are the real reasons behind the West’s sanction policy.

In recent months, China has also become an active member of this “anti-dollar” campaign, since it has signed agreements with Canada and Qatar on national currencies exchange, which resulted in Canada becoming the first offshore hub for the yuan in North America. This fact alone can potentially double or even triple the volume of trade between the two countries since the volume of the swap agreement signed between China and Canada is estimated to be a total of 200 billion yuans.
China’s agreement with Qatar on direct currency swaps between the two countries are the equivalent of $ 5.7 billion and has cast a heavy blow to the petrodollar becoming the basis for the usage of the yuan in Middle East markets. It is no secret that the oil-producing countries of the Middle Eastern region have little trust in the US dollar due to the export of inflation, so one should expect other OPEC countries to sign agreements with China.

As for the Southeast Asia region, the establishment of a clearing center in Kuala Lumpur, which will promote greater use of the yuan locally, has become yet another major step that was made by China in the region. This event occurred in less than a month after the leading financial center of Asia – Singapore – became a center of the yuan exchange in Southeast Asia after establishing direct dialogue regarding the Singapore dollar and the yuan.

The Islamic Republic of Iran has recently announced its reluctance to use US dollars in its foreign trade. Additionally, the President of Kazakhstan Nursultan Nazarbayev has recently tasked the National Bank with the de-dollarization of the national economy.

All across the world, the calls for the creation of a new international monetary system are getting louder with each passing day. In this context it should be noted that the UK government plans to release debts denominated in yuans while the European Central Bank is discussing the possibility of including the yuan in its official reserves.

Those trends are to be seen everywhere, but in the midst of anti-Russian propaganda, Western newsmakers prefer to keep quiet about these facts, in particular, when inflation is skyrocketing in the United States. In recent months, the proportion of US Treasury bonds in the Russian foreign exchange reserves has been shrinking rapidly, being sold at a record pace, while this same tactic has been used by a number of different states.
To make matters worse for the US, many countries seek to export their gold reserves from the United States, which are deposited in vaults at the Federal Reserve Bank. After a scandal of 2013, when the US Federal Reserve refused to return German gold reserves to its respective owner, the Netherlands have joined the list of countries that are trying to retrieve their gold from the US. Should it be successful the list of countries seeking the return of gold reserves will double which may result in a major crisis for Washington.

The above stated facts indicate that the world does not want to rely on US dollars anymore. In these circumstances, Washington relies on the policy of deepening regional destabilization, which, according to the White House strategy, must lead to a considerable weakening of any potential US rivals. But there’s little to no hope for the United States to survive its own wave of chaos it has unleashed across the world.

Vladimir Odintsov, political commentator, exclusively for the online magazine “New Eastern Outlook”  http://journal-neo.org/2015/02/02/rus-dedollarizatsiya-i-ssha/

The USA Debt Time-bomb Tocking, Ticking, Tock, Tick…

6456456456456Most of the world has an image of the United States as the one country of the advanced industrial world that took consequent action in the wake of the March 2007-September 2008 financial crisis. The result, we are carefully led to believe—via the politically ever-correct mainstream media like The New York Times or the CNBC financial network or Bloomberg—is that American banks and corporations today are back on their feet, healthy, robust. We are led to believe that eight years of Obama Administration economic genius have produced near-all-time low unemployment as the US leads the way among the G-7 to healthy growth. Only one thing wrong with this picture—it’s a complete, fabricated lie, fabricated by Washington with the collusion of the Wall Street banks and the Federal Reserve. The reality is pretty scary for those living in ignorance. The cracks now emerging in an unprecedented level of US corporate debt are flashing red alert on a new economic crisis, a very, very ugly one. 

Nobel economics laureate Paul Krugman once made the stupid argument that “debt doesn’t matter.” Dick Cheney back during the 2002 Washington budget debates over the wisdom of making new tax cuts amid huge costs to finance the new Washington War on Terror, made the equally stupid comment, “Reagan proved that deficits don’t matter.” In the real world, where debts of private households, of governments like Greece or Portugal or Detroit City, or private corporations like Chesapeake Energy or General Motors, effect jobs, technology, entire communities or nations, debt certainly does matter.
Corporate Debt Time Bomb 

Even more dangerous than the enormous rise in US National Debt since 2000, to levels today of over $19 trillion or 108% of GDP, is the alarming rise since 2007 in US debt of corporations, excluding banks. As of the second quarter of 2015 high-grade companies tracked by JPMorgan Chase paid $119 billion in interest expenses over the year, the most in debt service costs since 2000. Disturbing is that that was despite record low debt borrowing costs of 3%. US corporations took advantage of the Fed’s unprecedented near-zero interest rates to borrow up to the hilt. It made sense were the economy really improving. Now with a significant recession looming in the USA, the debt is suddenly a problem. i This is the true reason the Fed is unable to raise interest rates beyond the purely symbolic 0.25% last December. The US corporate debt pyramid would topple. Yet the zero interest rates are wreaking havoc for those investors or insurance companies invested in bonds for “security.”

Now signs are appearing that point to very serious developing corporate debt problems. Delinquencies–late debt repayments of 30 days or more–in the US corporate sector are rising significantly in recent months. In a genuine economic recovery, business debt delinquencies fall, as all ships are floated by a rising tide of recovery. Delinquencies are costly and avoided whenever possible. An early sign of a weakening economy on the other hand, is a rise in corporate debt delinquencies. Delinquencies lead to defaults lead to corporate bankruptcy of not reversed by an improving economic environment. And the real US economic environment is anything but improving.

A recent analysis by US economist Michael Synder compared business debt delinquencies in 2008 just before the Lehman Brothers collapse. Then, delinquencies were rising at a very frightening pace he notes, “and this was a very clear sign that big trouble was ahead. Unfortunately for us, in 2016 business debt delinquencies have already shot up above the level they were sitting at just before the collapse of Lehman Brothers, and every time debt delinquencies have ever gotten this high the US economy has always fallen into recession.”

According to another analysis by Wolf Richter, delinquencies of commercial and industrial loans at all US banks, after hitting a low point in end of 2014 of $11.7 billion, have begun to balloon. “Initially, this was due to the oil & gas fiasco, but increasingly it’s due to trouble in many other sectors, including retail. Between Q4 2014 and Q1 2016, delinquencies spiked 137% to $27.8 billion. They’re halfway toward to the all-time peak during the Financial Crisis in Q3 2009 of $53.7 billion. And they’re higher than they’d been in Q3 2008, just as Lehman Brothers had its moment.”

Richter also notes that the debt problems are spreading to US farms which today are very much a corporate business: “Slumping prices of agricultural commodities have done a job on farmers, many of whom are good-sized enterprises. Farmland is also owned by investors, including hedge funds, who’ve piled into it during the boom, powered by the meme that land prices would soar for all times because humans will always need food. Then they leased the land to growers.” But as Richter relates, “Now there are reports that farmland, in Illinois for example, goes through auctions at prices that are 20% or even 30% below where they’d been a year ago. Land prices are adjusting to lower farm incomes, which are lower because commodity prices have plunged.

Now delinquencies of farmland loans and agricultural loans are sending serious warning signals. These delinquencies don’t hit the megabanks. They hit smaller specialized farm lenders.” He notes that delinquencies of farmland loans jumped 37% from $1.19 billion in Q3 2015 to $1.64 billion in Q1 this year.

Zero rate bubble danger

Many think that the aim of the post-2008 Fed Zero Interest Rate Policy was to stimulate investment into the economy to avert a new economic depression. Far from it. Since the first onset of the US sub-prime real estate crisis in March 2007, total US corporate debt levels, according to Standard & Poor’s, has ballooned to an all-time high level of $6.6 trillion as of the beginning of this year. In the past five years since 2011 alone corporate debt, amid virtually free Fed-inspired interest rates after tax adjustments, has increased by an eye-popping $2.8 trillion, at least 40% more net and total debt than in 2007. In 2016 the rise in corporate debt, annualized, is running at an alarming $1.4 trillion annualized rate, nearly double the rate prior to the financial collapse of September 2008.

Had that rise in corporate debt been used, as was the prudent corporate norm until recently, to finance plant, new more modern equipment and other long-term productive assets, such debt would have generated an income flow that would suffice to repay the debt, usually with a nice surplus profit to boot. It would also have boosted job creation and real economic growth, not the faked US Government virtual GDP growth.

This corporate debt binge has gone to nothing so productive. Instead it’s fueling an out-of-control stock market bubble, as seen in the all-time highs on the S&P 500 stock index. Corporations are using their near-free debt to buy back their own stock shares, a dubious practice which benefits only the stock price of shareholders but adds not an ounce of net productive gain to the real economy. Or it has gone to finance corporate mergers and takeovers, which again do not add net gain to the real economy but rather the opposite—job cuts, plant closings and asset strips. Highly profitable for Wall Street and for financial operators, not for the real economy.

As a totality US corporations today have a far greater vulnerability in terms of levels of debt in relation to revenues or income than at the onset of the 2007-2008 financial tsunami.

The Federal Reserve, along with the European Central Bank and the Bank of Japan have reverted over the past two years to the unprecedented and ludicrous policy of zero interest rates to keep their financial Ponzi bubble inflating, not bursting. The ECB and Bank of Japan recently have actually gone to negative interest rates meaning banks pay the ECB or BOJ to place reserves in the central bank. The Fed is considering such a negative rate policy shift. Today it has been calculated that more than $13 trillion worth of government bonds globally now have negative rates. That’s more than one-third of all government bonds. That means someone buying those bonds and holding until it matures, will actually lose money. Only because major pension funds and insurance companies are required by law, originally for reasons of safe and prudent long-term investment, to buy only high-rated government bonds can the negative rate bonds find buyers.

Now, for the same reason, high-rated corporate bonds are being offered paying negative interest rates. Bloomberg Business reports that $512 billion worth of corporate bonds now have negative rates, 11 times more corporate bonds with negative yields than there were six months ago. With so much of government bonds paying negative interest, and now an exploding share of the US corporate bonds, the solvency risks of US pension funds and insurance companies is growing alarmingly in a chain-reaction follow-on effect.

The alarming warning signal of trouble in the US corporate bond market with soaring rates of debt delinquencies, and the fact that since the collapse of the US shale oil industry Wall Street and other major bank creditors have been tightening criteria for extending more debt, say to me that the US economy is on the precipice of a new debt default implosion that will make 2008 appear a financial market hiccup by comparison. Maybe this reality is behind the utterly irrational Washington hysteria against Russia and now against China. If you run out of targets from whom to rob assets peacefully through stock market and bond manipulations, try the old method of gunpoint. Only this time the intended victims are not reacting at all as victims, but as defenders of their sovereignty. Something new and unexpected by Washington and their Wall Street patrons.

F. William Engdahl is strategic risk consultant and lecturer, he holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics, exclusively for the online magazine “New Eastern Outlook”  http://journal-neo.org/2016/07/28/the-usa-debt-time-bomb-tocking-ticking-tock-tick/