Archive for the ‘International’ Category

A new look at the secret hoards of the ultra-rich

November 6, 2017

Remember the Panama Papers?  That was a massive leak of documents from a Panama-based law firm called Mossack Fonsecka, revealing how the world’s richest and most powerful people hid billions of collars in investments from tax collectors and the public.

Now there is another big leak—called the Paradise Papers—from century-old Bermuda-based law firm called Appleby and its Singapore affiliate.

Like the Panama Papers, the anonymous leaker sent documents to a German newspaper called Süeddeutsche Zeitung, which teamed up with the International Consortium of Investigative Journalists, the Organized Crime and Corruption Reporting Project and some of the world’s other top newspapers, and spent a year going through 13.4 million files.

Some of the highlights of what was found:

  • Queen Elizabeth II’s investment manager, the Duchy of Lancaster, invested millions of pounds in a Cayman Islands fund, whose investments included Bright House, a rent-to-own UK furniture company that charged interest rates of up to 99%
  • Secretary of Commerce Wilbur Ross, who divested himself of ownership in 80 companies to avoid conflicts of interest, kept interests in nine offshore companies.  Four of them invested in a shipping company called Navigator Holdings, which did business with a Russian energy and chemical company called Sibur, whose key owners include Vladimir Putin’s son-in-law and a Russian oligarch under U.S. sanctions.
  • Stephen Bronfman, a key fund-raiser for Canadian Prime Minister Justin Trudeau, teamed up with key Liberal Party figures to evade Canadian, U.S. and Isreali taxes.

Major companies shown to do business through tax havens are Apple, Nike, Uber Barclay’s Bank, Goldman Sachs, BNP Paribas and Glencore, the world’s largest commodity trader.

None of this is, in itself, illegal.  But hidden offshore investments provide a way for criminals to launder money and for individuals, companies and governments to evade economic sanctions by the U.S. and other governments.

As several people have remarked, the worst scandals are not how the law is broken, but what can be done that is perfectly legal.

For what it’s worth, I don’t think any of this is evidence that the Russian government or Russian interests manipulated the 2016 elections in favor of Donald Trump,

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The top 1 percent in Russia

October 6, 2017

I’ve posted many charts about the growing concentration of income and wealth in the United States in the hands of a tiny elite.   Here is a chart illustrating inequality in Russia.

You should take note about what this chart shows and doesn’t show.  The ruling elite in the old Soviet Union didn’t have large incomes, and they didn’t live like American millionaires and billionaires, but they did have special privileges, much like military officers compared to the rank and file or like American corporate executives with huge expense accounts.    They had special stories, special medical care, special schools for their children, etc.

Also, the chart indicates that relative equality isn’t everything.   I don’t think many Americans would have wanted to trade places with the average person in the old Soviet Union.

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Are we still getting smarter? Maybe not

October 3, 2017

Average I.Q. test scores rose decade by decade in most countries throughout the 20th century.   But now, in a few countries, the trend may be going into reverse.

By the standards of today, the average person in the late 19th century would be been on the verge of mental retardation.  By the standards of that era, the average person of today is on the verge of being highly gifted.

This is called the “Flynn effect,” for James R. Flynn, who discovered it.    He doesn’t believe that people today are biologically superior to people of an earlier era, even though they are better nourished and get better medical care.

He believes it is because people today are educated to reason abstractly and hypothetically, which is what I.Q. tests measure.   People in the earlier era weren’t stupid; they just focused on particular things and personal experience.

Higher I.Q., in other words, fits you to function in a civilization based on abstract reasoning.

Now there is some evidence of a “reverse Flynn effect”—I.Q. leveling off or declining in some countries.   This is based on tests of large numbers of British school children age 11-12 and 13-14 in selected years, of military conscripts in Denmark, Norway and Finland, of students in Estonia, of adults in France and the Netherlands.

It is hard for me to think of any reason why this would be so in those countries that would not apply in greater measure to the United States.

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Is Canada a nation?

August 3, 2017

In this post, I consider two authors who argue that Canada is not a nation.

Click to enlage. Source: Cyrus Dahmubed

Joel Garreau, a reporter for the Washington Post, wrote back in 1981 that the USA and Canada were not actually nations, only a collection of regional cultures.

He claimed that their territories were actually divided among The Nine Nations of North America (shown in the left map above), of which only Quebec was wholly contained within the jurisdiction of Canada and Dixie within the United States.

His conclusions were based on travels and interviews in the late 1970s, and he concluded that there really were six Canadian nations, all but one of which had a metropolis in the United States.  They were:

  • New England (Boston), the U.S. New England states and the Canadian maritime provinces.
  • Quebec (Montreal), the actual province of Quebec.
  • The Foundry (Detroit), the industrial region north and south of the Great Lakes and including the U.S. Middle Atlantic States.
  • The Breadbasket (Kansas City), the agricultural U.S. Great Plains and the Canadian prairie provinces.
  • The Empty Quarter (Denver), the thinly populated, mineral-rich Rocky Mountain states and provinces and the Canadian north.
  • Ecotopia (San Francisco), the Pacific-facing region from San Francisco to Juneau, Alaska.

Americans and Canadians within these areas, Garreau argued, had more in common with each other, economically and culturally, than they did with U.S. and Canadian citizens in other regions.

Colin Woodard made the same argument 30 years later in American Nations: a History of the Eleven Regional Cultures of North America, except that, unlike Garreau, he defined all of his “nations” except the Far West based on their cultural inheritance rather than economics and geography.

He divided Canada into six “nations”, at least four of which overlap with the United States.   They are:

  • First Nation, the newly autonomous American Indian nations in the Canadian North.
  • New France, the heirs of the original French settlers.
  • Yankeedom, roughly corresponding on the Canadian side to Garreau’s New England.
  • Midlands, which I will discuss below.
  • The Far West, roughly corresponding to Garreau’s Empty Quarter
  • The Left Coast, roughly corresponding to Garreau’s Ecotopia.

Woodard, who lives in Maine, described the sense of unity between New England and the Canadian Maritime provinces.  The Canadian Maritimes were settled from New England, he wrote, and Yankees and Maritimers were reluctant to fight each other during the Revolutionary War and the War of 1812.

The provinces of Upper Canada (now Ontario) and New Brunswick were created after the Revolutionary War to provide a refuge for defeated Loyalists after the American Revolution.   Most of those Loyalists, according to Woodard, were pro-British fighters, neutral merchants and farmers and Quaker pacifists from the New York City and Philadelphia regions.

Some of them were loyal to the British crown.   Others were attracted by the offer of free land in Ontario—a forerunner of the U.S. Homestead Act.

British, Scots and Irish settlers came in larger numbers to the Maritimes and Ontario, but, according to Woodard, the settlers from the U.S. Midlands came first and it was they who set the tone for the culture.   That is why his hypothetical Midlands region has such a strange, looping shape.

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How the U.S. lags peer nations in health care 2

June 11, 2017

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I came across a 2015 study by The Commonwealth Fund that shows the Americans spend more on health care, use more medical technology and take more prescription drugs than citizens of most peer nations, but aren’t necessarily more healthy.

We’re not the worst in this respect, but we’re far from the best.

The charts above and below tell the story.   I doubt things have changed much since 2013.

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How the US lags peer nations in health care

June 10, 2017

Click to enlarge

Americans pay more for medical care than citizens of other advanced nations, and get less in return.  Our health outcomes are worse.   So far as I can tell, enactment of the Affordable Care Act in 2010 hasn’t changed this.

Health care spending per person

United Kingdom, $4,003

France, $4,407

Canada, $4,607

Germany, $5,267

United States, $9,451

Percentage of population without medical insurance

United Kingdom, 0.0%

Canada, 0.0%

France, 0.1%

Germany, 0.2%

United States, 9.1%

What patients pay to see a doctor

United Kingdom, free

Canada, free

Germany, $5 – $11

France, $25, most of which is reimbursed later

United States, $30 to $200, depending on insurance

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Book note: The Making of Global Capitalism

May 30, 2017

International financial organizations such as the International Monetary Fund and the World Trade Organization have come to be a kind of world government, dictating policy to supposedly sovereign governments.

I recently read a book, The Making of Global Capitalism (2012) by two Canadian leftists named Leo Panitch and Sam Gindin, on how this came about.   I thank my friend Tim Mullins for recommending it.

It’s quite a story.  It is not well understood.

The first part of the story is the U.S. New Deal.   President Franklin Roosevelt and the Democratic Congress gave the U.S. Treasury Department and the Federal Reserve System the authority they needed to stabilize the crumbling U.S. financial and banking system.

The second part is the 30 years following World War Two.   Under the leadership of the U.S. Treasury and Federal Reserve, international financial institutions were created that duplicated the U.S. system.  They presided over the era of greatest peace and prosperity that North Americans and Europeans had ever since.

The third part is what happened after that.  The world’s financial system endures a series of ever-greater financial crises.   To deal with them, international financial  institutions demand the surrender of gains made by American and European workers and the middle class in the earlier era.

The irony is that a financial governing structure created by American power is now stronger than ever, while the actual American economy is rotting away beneath it.

Panitch and Gindin described in great detail how this happened, step-by-step,.

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Establishment’s Macron wins the French election

May 8, 2017

Emmanuel Macron, elected President of France yesterday with two-thirds of the vote, is a product of that country’s educational and financial establishment.

He will have an opportunity in the next five years to vindicate the establishment, by showing that it is possible to turn around the economy without changing France’s political or economic structure or withdrawing from the European Union.

Emmanuel Macron

I don’t expect that to happen.   First, he has not yet consolidated his power.  As President, he will be in charge of French foreign and military policy.    Domestic policy will be the responsibility of the Prime Minister, who is appointed by the President with the consent of the National Assembly.

The National Assembly will be elected June 11 and 18.   If Macron’s newly formed En Marche (On the Move) movement wins a majority, his power will be complete.   If not, the National Assembly may force him to accept a Prime Minister of a different party.

The President is something like a corporation’s chief executive officer and the Prime Minister is something like its chief operating officer.   If the CEO and COO were not in agreement and the CEO couldn’t remove him, then the CEO does not have the full powers of a CEO

Second, even if Macron’s power is complete, what solutions does he have to offer?   He campaigned on the basis of generalities and a winning personality, much like Barack Obama in the USA in 2008 and Justin Trudeau in Canada in 2015.

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Neoliberalism vs. nationalism in France

April 24, 2017

The French election on Sunday narrowed the field to two candidates—Emmanuel Macron, a neoliberal defender of globalization, and Marine Le Pen, a blood-and-soil nationalist, in the run-off election May 7.

Macron is an Obama-like outsider, who offers a vaguely-defined hope and change and, in fact, was endorsed by Barack Obama, but who actually represents France’s financial establishment.

Le Pen is usually described as the “far right” candidate.  She promises to protect France from what she calls the twin threats of globalization and Islam.

But she also is in favor of locking in France’s 35-hour work week, lowering the retirement age to 60, bolstering public services and reducing income taxes on low-income workers

Macron is in favor of flexibility on the 35-hour work week, industry deregulation, reduction of government spending and cutting corporate taxes.  So which is the right-winger?

He favors CETA—the Canadian-European Free Trade Agreement—which, like NAFTA and the defunct proposed Trans-Pacific Partnership Agreement, would restrict business regulation in the name of protecting free trade.  So who is the left-winger here?

Le Pen would replace the Euro with a “nouveau franc,” reestablish border controls and repeal certain European Union laws.  If the EU refused to cooperate, she would call for a referendum on whether France should secede.  If the French voted to stay in the EU, she would resign.

Macron wants to strengthen the Euro and France’s ties with the EU.   He generally favors current French policy on immigration.  Le Pen would restrict immigration to 10,000 persons a year and kick out all unauthorized immigrants, as well as all Muslims on terrorist watch lists.

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Neoliberalism and its discontents (2)

April 13, 2017

What follows is notes for the second part of a talk for the Rochester Russell Forum scheduled at Writers & Books Literary Center, 740 University Ave., Rochester, NY, at 7 p.m. Thursday, April 13.

Neoliberalism has generated an antithesis—blood and soil nationalism, which holds that the supreme human value consists of the ties of loyalty and customs among people of common ancestry who live in the same place.

Blood and soil nationalism is not fascism, although it can fit very well with fascism.  It is not racism, although it can fit very well with racism.

The difference is that fascism and racism are international movements.  They are disconnected from the culture and heritage of any particular place.

Loyalty to a heritage and a way of life, to kindred who live in a particular place, is the most natural feeling in the world.   It is wrong to devalue this feeling.

The problem is that, for many people, local cultures and heritages have already been hollowed out by the consumer culture promoted by the mass media of entertainment and advertising.  What is left is a hollowed-out version of patriotism consisting of loyalty to your own group and hatred of some other group you see as a threat.

People embrace this hollow nationalism as a way of giving a meaning to their lives that the neoliberal consumer and advertising culture does not provide.

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Mike Whitney on U.S. anti-Russian policy

March 24, 2017

Will Washington Risk WW3 to Block an Emerging Russia-EU Superstate? by Mike Whitney for Counterpunch.

Map via Wikimedia

Who are willing to fight for their countries?

February 24, 2017
The darker the red, the greater the willingness to die for one's country

The darker the red, the greater the willingness to fight.

Only 44 percent of adult Americans are willing to tell pollsters they’d fight for their country.

The percentage is even less for some U.S. allies, such as Canada (30%), France (29%), the United Kingdom (27%), Italy (30%), Germany (18%) and Japan (11%).

In contrast, 71 percent of Chinese and 59 percent of Russians say they’d fight for their countries.

This is the result of a public opinion poll of more than 1,000 people in each of 64 countries in late 2014 by WIN / Gallup International.   The complete results are below.

I’m not sure what to make of this.  I think it partly depends on people mean by “fight for country”.

I think almost all Americans would be willing to fight to defend our nation from an invader.  I think only a minority are willing to go to some foreign country to fight to increase U.S. geopolitical power.

The problem for us Americans is that someday U.S. power will begin to slip, and countries that now fear to go against the United States will become our enemies.

When that backlash comes, our nation will need the patriotism that our leaders now exploit and abuse.

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A joking Dutch message to Donald Trump

January 27, 2017

Update 2/14/2017.  You also can click on this to view the video.

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A tyrant is dead, a tyranny continues

December 4, 2016

Hat tip to O.

Can Trump make U.S. industry great again?

December 1, 2016

Donald Trump in his campaign promised to reverse the decline of American manufacturing.

Can he do it?  I’m willing to be pleasantly surprised, but I don’t think so.

President-elect Trump’s proposed economic policies are the same as what most Republicans and many Democrats have been advocating for 30 years or more—lower taxes, less regulation, fewer public services.

None of these things has stopped the increase in U.S. trade deficits or the increase in economic insecurity of American workers.

Trump did speak against the Trans-Pacific Partnership agreement, promised to renegotiate other trade agreements and threatened to impose punishing tariffs on China and Mexico in retaliation for their unfair trade policies.

I myself am in favor of rejecting the TPP and renegotiating trade treaties.  This would be a step forward.  But it would take more than this to rebuild the hollowed-out U.S. manufacturing economy.

China, Japan, South Korea and most nations with flourishing industrial economies use trade policy as a means of strengthening their economies.

Their leaders, like Alexander Hamilton in the early days of the United States, seek to build up their nations’ “infant industries” under those industries are strong enough to stand on their own feet.

When foreign companies seek to sell these nations their products, their governments demand that the foreign companies not only set up factories in their countries, but that they employ native workers and transfer their industrial know-how to the host countries.  The USA does nothing like this.

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If the USA and Russia could change places

September 26, 2016

2000px-russia_usa_locator-svg

My experience and knowledge of foreign countries is limited, but I try to understand foreign leaders by putting myself in their place, and imagining what I would do if I were them.

Peter Hitchens, a Briton who was a foreign correspondent in Moscow for many years, invites us to imagine how we would feel if we were Russians, a nation that, unlike the USA, has been invaded not once, but many times, and lost millions, not thousands, of lives to invaders within living memory.

Safety, for Russians, is something to be achieved by neutralizing a danger that is presumed to exist at all times.  From this follows a particular attitude to life and government.

If the U.S. had China on the 49th Parallel and Germany on the Rio Grande, and a long land border with the Islamic world where the Pacific Ocean now is, it might be a very different place.  There might even be a good excuse for the Patriot Act and the Department of Homeland Security and the FBI.

If Russia’s neighbors were Canada and Mexico, rather than Germany, China, Turkey, and Poland, and if its other flanks were guarded by thousands of miles of open ocean, it might have free institutions and long traditions of free speech and the rule of law. It might also be a lot richer.

As it is, Russia is a strong state with a country, rather than a country with a strong state.  If it were otherwise, it would have gone the way of the Lithuanian Empire or, come to that, the Golden Horde.

Source: Peter Hitchens | First Things

That is not to say that life in Vladimir Putin’s Russia is good, or that Putin is a benign ruler.  But he is no worse than many of the despots with whom the United States is allied, and life in the Russian Federation is infinitely preferable to live in the Union of Soviet Socialist Republicans.

Far from being a new Hitler, Hitchens wrote, his goal is to keep territories formerly controlled by the USSR from joining anti-Russian alliances.  Whatever you think of this, it is not a threat to the United States or any other Western nation.

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Ted Rall on the death of Uzbekistan’s tyrant

September 7, 2016

Ted Rall, who has traveled in Central Asia, had this to say about the death of Uzbekistan’s ruler Islam Karimov.

uzbekistan-C-Asia-MAPGiven Uzbekistan’s tremendous oil, gas and mineral wealth and its geographically and geopolitically strategic importance, its citizens ought to enjoy a high standard of living.  Instead, the average Uzbek subsists on $3 to $8 per day.

Where does all that energy wealth go? Karimov, his family and cronies steal it.  Gulnara Karimova, the deceased despot’s flamboyant chanteuse daughter, is accused of breaking in over $1 billion in bribes from telecommunications companies seeking permits to do business.  Another daughter, Lola Karimova-Tillyaeva, is linked to shell companies that own gaudy multimillion estates in the U.S.  [snip]

Uzbekistan is routinely awarded the world’s “Worst of the Worst” status for its extreme corruption and violations of fundamental human rights.  Phones are tapped and militsia goons shake down motorists at innumerable checkpoints.  Print and broadcast media are completely state-controlled. There’s a zero tolerance policy toward political opposition.  [snip]

At least 10,000 political prisoners are rotting in the nation’s prisons. Torture is standard and endemic; Team Karimov landed a rare spot in the news for boiling dissidents to death.  In 2005, President Karimov asked security forces confronting protesters in the southern city of Andijon to wait for his arrival from the capital of Tashkent so he could personally witness and coordinate their massacre.  An estimated 700 to 1200 Uzbeks were slaughtered.  “People have less freedom here than under Brezhnev,” a U.S. official admitted.  [snip]

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Islam Karimov: death of a dictator

September 3, 2016

Islam Karimov of Uzbekistan, who died a few days ago, was a ruthless dictator comparable to the Saddam Hussein of Iraq.

uzbekistan-C-Asia-MAPA holdover from the Soviet era (appointed by Mikhail Gorbachev, no less), Karimov was known for his repression of the Muslim religion and of dissent of all kinds, and for forced child labor in cotton fields, his country’s chief export industry.

Craig Murray, the former UK ambassador to Uzbekistan, said growing a beard or being seen praying five times a day could be enough to get you thrown in jail or to “disappear” mysteriously.

Yet Karimov was courted by Russia, China and the USA as an ally against radical Islamic terrorism.   Uzbekistan was an important transit point for supplies going to U.S. forces in Afghanistan.

What should US policy have been?  Should our government be like China’s, which scrupulously refrains from interfering in the internal affairs of other countries, no matter how odious their governments?

Or should the US have armed Karimov’s opponents, as was done in Libya and Syria, to being about a change in the regime?

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Health care costs and the U.S. middle class

September 2, 2016

Economics professor David Ruccio points out that, since the previous recession, the American middle class has been cutting back on spending—on everything except medical care.

healthcare.na-cl366_medspe_16u_20160825163913

The Affordable Care Act was supposed to not only make medical care more widely available, but to make it affordable.   This hasn’t happened.  I think this is partly due to opposition by Republican governors and congressional representatives, but largely due to flaws in the law itself.

It’s a well-known fact that we Americans pay more for medical care and get less benefit than citizens of any other industrial nation.

ftothealthexp_pc_usd_long-1

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Nothing new about a woman leading a nation

July 23, 2016
Angela Merkel

Angela Merkel

The possibility of electing the first woman President of the United States is a big deal for many of us Americans.  But the rest of the world may well ask: What took you so long?

Even in the days when women were not eligible to enter the professions or earn university degrees, they still could be queens and empresses.

Rulers such as Queen Elizabeth I of England and Catherine the Great of Russia showed that women could play power politics with the best of them.

Since women in the 20th century received the right to vote and run for office, they’ve had the opportunity to become heads of government on their own merits and not as family dynasties.  Here are some examples.

1969 – Golda Meir (Israeli Labor Party) became Prime Minister of Israel.

1979 – Margaret Thatcher (Conservative) became Prime Minister of the United Kingdom.

1990 – Jenny Shipley (National Party) became Prime Minister of New Zealand.

1991 – Edith Cresson (Socialist) became Prime Minister of France.

1993 – Kim Campbell (Progressive Conservative) became Prime Minister of Canada.

1993 – Tansu Çiller (True Path Party) became Prime Minister of Turkey. [added later]  (Hat tip to S. Glover)

2005 – Angela Merkel (Christian Democratic Union) became Chancellor of Germany.

2010 – Julia Gillard (Australian Labor Party) became Prime Minister of Australia.

2011 – Dilma Rousseff (Brazilian Labor Party) became President of Brazil

Here are some examples of women who achieved power as members of family dynasties.

1966 – Indira Gandhi, daughter of Jawaharlal Nehru, became Prime Minister of India.

1974 – Isabel Peron, widow of Juan Peron, became President of Argentina.

1986 – Corazon Aquino, widow of Benigno Aquino Jr., became President of the Philippines.

1988 – Benazir Bhutto, daughter of Zulifikar Ali Bhutto, became Prime Minister of Pakistan.

2001 – Magawati Sukarnoputri, daughter of Sukarno, became President of Indonesia.  [added later]

It is an interesting question as to whether Hillary Clinton, if elected, belongs on the first list or the second.  She is a successful and effective politician, but would she have been elected Senator from New York or been appointed Secretary of State if she had been Hillary Rodham rather than Hillary Rodham Clinton?

Currently Bangladesh, Brazil, Chile, Croatia, Germany, Liberia, Lithuania, Malta, the Marshall Islands, Mauritius, Namibia, Nepal, Norway, Poland, South Korea, Switzerland, and the United Kingdom all have women as heads of state, heads of government or both.  Also Burma (sort of).

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Obama, lame-duck GOP Congress may enact TPP

July 20, 2016

Republicans in Congress refused to vote President Obama’s Supreme Court nominations on the grounds that he is a lame duck.  But it’s highly likely they’ll join with him to enact the odious Trans Pacific Partnership agreement right after the November elections, when he and they really will be lame ducks.

Pac-Money-400x266When Congress voted to allow a “fast track” decision—an up or down vote with little time to discuss the agreement—it was Republican votes that provided the margin of victory.

“Fast track” means there’s no way to stop a lame-duck vote on TPP, even if anti-TPP candidates sweep Congress in the November elections.

All it would take is that President Obama, House Speaker Mitch McConnell and other TPP supporters are brazen enough.

Bernie Sanders opposed the TPP.  Donald Trump opposes it.  Hillary Clinton promoted it when she was Secretary of State, but she says she now has reservations about it.  Her supporters on the Democratic platform committee voted down a plank that would criticize the TPP so as not to embarrass President Obama.

The TPP—and the related Transatlantic Trade and Investment Partnership agreement and Trade in Services Agreement—are corporate wish lists written into international law.

These limit the power of governments to legislate and regulate to protect workers, consumers and the environment, grant drug and media companies new intellectual property rights, and create panels of arbitrators that can impose penalties on governments for depriving international corporations of “expected profits.”

So it’s fitting, in a way, that these anti-democratic trade agreements are likely to be enacted into law by a President and members of Congress who may not have run for re-election or been voted out of office.

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Lessons from northern Italy

July 11, 2016

My e-mail pen pal Bill Harvey sent me a link to an article in YES! magazine about the Emilia Romagna region in northern Italy, where two-thirds of its 4.5 million people participate in co-operative businesses.

emilia_romagnaThere are worker-owned cooperatives, consumer-owned co-operatives, and social service co-operatives, in which people band together to provide day care, care for senior citizens and other services that the Italian government can’t do satisfactorily.

Vera Zarnagni, professor of economic history at the University of Bologna, said co-operative enterprise is part of an economic tradition going back to the 1850s.  It’s an illustration of a contention by the American thinker Murray Bookchin, that there are other ways the world’s economy could have developed besides the way it did.

Even though a majority of the region’s people are co-op members, many of them also work for profit-seeking corporations.  Co-operative business activity accounts for about 30 percent of the economic output of the region.

Most of the co-ops in the region are small enterprises, linked together in a ecological network of relationships.  What I’ve read about Italy indicates that this is true of Italian business as well.  Italy has an unusually high proportion of small family-owned businesses, linked by personal relationships, and engaged in high-value work involving high standards of craftsmanship.

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Will Brexit be the scapegoat for UK’s problems?

July 11, 2016

I can’t judge all the consequences to Britain of the vote to exit the European Union, but there are a few things I am sure of.

  • The United Kingdom had many serious economic problems before Brexit—financialization, the hollowing out of manufacturing, the decline of the British pound, unnecessary government austerity.
  • Politicians and journalists will use Brexit as the scapegoat and explanation of these problems, and an excuse for not doing anything about them.
  • If the UK joins the Transatlantic Trade and Investment Partnership, the Trade In Services Agreement or other corporate-sponsored trade agreements, it will lose whatever national sovereignty it gained by exiting the European Union.

LINKS

Why They Left by Costos Lapavitsas for Jacobin magazine.

‘I want to stop something exploitative, divisive and dishonest’—conversation with a Leaver by Oliver Humpage for Medium.

Britain is not a rainy, fascist island — here’s my plan for ProgExit by Paul Mason for The Guardian.

The global elite strikes back

July 7, 2016

The common people in Europe, the USA and other countries are starting to revolt against international institutions—the European Union, the World Trade Organization, the International Monetary Fund—that represent the interests of an international financial elite.

free-tradeThe financial elite is striking back by promoting international trade agreements—the Trans-Pacific Partnership (TPP) agreement, the Transatlantic Trade and Investment Partnership (TTIP) agreement, the Trade in Services Agreement (TISA) and the lesser-known Comprehensive Economic and Trade Agreement (CETA) involving Canada and the European Union.

All these agreements would enact pro-business policies into international law, and would create tribunals with the power to fine governments for unjustly depriving businesses of expected profits.

Nationalists oppose these agreements because they undermine national sovereignty.   Progressives and liberals oppose these agreements because they are un-democratic.  On this issue, progressives and nationalists are on the same side because, at these moment in history, national governments are the highest level in which democracy exists.

President Obama hopes to get the Republican majority in the lame duck Congress following the November election to enact the TTP Agreement.   The Conservative Party in Britain favors the TTIP, which would subject the UK to a new pr0-business international authority.   CETA would accomplish the same goal for the remaining EU members.

If any of these agreements passes, they can be used to block legislation to protect workers, consumers or public health, or to bring banks and financial institutions under control.

Followers of Bernie Sanders in the USA and Jeremy Corbyn in the UK, and progressives in other subject countries, would be stymied until they could figure out a way to roll back the agreements.

None of these agreements is needed in order to have international trade.   Rather their goal is to remove controls on the operations of international corporations.

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Brexit: the revolt of the losers

June 28, 2016

The dominant neoliberal economy sorts people into winners and losers.  Brexit is a revolt of the losers.

The winners are the credentialed professionals, the cosmopolitan, the affluent.  The losers are the uncredentialed, the provincial, the working class.

Losers are revolting across the Western world, from the USA to Poland, and their revolt mostly takes the form of nationalism.

The reason the revolt takes the form of nationalism is that the world’s most important international institutions—the World Bank, the International Monetary Fund, and the European Central Bank—are under the control of a global financial elite that does not represent their interests.

17149339-Abstract-word-cloud-for-Neoliberalism-with-related-tags-and-terms-Stock-PhotoI don’t fully understand the decision-making process in the European Union, but looking at its web site, my impression is that public debate is not a part of it.

The only vehicles for exercising democratic control, at the present moment in history, is through democratic national governments.  I am in favor of international cooperation, and I don’t know how I would have voted on Brexit if I had been British, but I certainly can understand Britons who don’t want to be at the mercy of foreign bureaucrats and the London governmental, banking and intellectual elite.

Democratic nationalism is the only form that democracy can take until there is a radical restructuring of international institutions.  Without a strong progressive democratic movement, the only alternative to neo-liberal globalization is right-wing anti-democratic populism as represented by Donald Trump, the United Kingdom Independence Party, Marine le Pen’s National Front in France, Greece’s Golden Dawn and others.

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