Inequalities are a result of low wages, based on big profits, financial swindles, multi-trillion dollar public handouts and multi-billion-dollar tax evasion

If you still have illusions about the American dream, thanks to sojourner for this:

Image: http://www.commondreams.org …Inequality is not a result of ‘technology’ and ‘education’- contemporary euphemisms for the ruling class cult of superiority – as liberals and conservative economists and journalists like to claim. Inequalities are a result of low wages, based on big profits, financial swindles, multi-trillion dollar public handouts and multi-billion-dollar tax evasion… …US corporations in […]

via How Billionaires Become Billionaires | Global Research – Centre for Research on Globalization — An Outsider’s Sojourn II (The Journey Continues)

Advertisements

What are we fighting for?

Country Joe And The Fish – Vietnam Song

Rock Cellar Magazine called it the greatest protest song of the Sixties, which may well make it the greatest protest song of all time.

Country Joe and the Fish performed it at the Woodstock Festival in 1969. Alter a word or two here and there (North Korea, Syria, Iraq for Vietnam, for example), and it’s as relevant today as it was nearly 50 years ago.

https://www.youtube.com/watch?v=-7Y0ekr-3So

Well, come on all of you, big strong men,

Uncle Sam needs your help again.

He’s got himself in a terrible jam

Way down yonder in Vietnam

So put down your books and pick up a gun,

We’re gonna have a whole lotta fun.

 

And it’s one, two, three,

What are we fighting for?

Don’t ask me, I don’t give a damn,

Next stop is Vietnam;

And it’s five, six, seven,

Open up the pearly gates,

Well there ain’t no time to wonder why,

Whoopee! we’re all gonna die.

 

Come on Wall Street, don’t be slow,

Why man, this is war au-go-go

There’s plenty good money to be made

By supplying the Army with the tools of its trade,

But just hope and pray that if they drop the bomb,

They drop it on the Viet Cong.

 

And it’s one, two, three,

What are we fighting for?

Don’t ask me, I don’t give a damn,

Next stop is Vietnam.

And it’s five, six, seven,

Open up the pearly gates,

Well there ain’t no time to wonder why

Whoopee! we’re all gonna die.

 

Well, come on generals, let’s move fast;

Your big chance has come at last.

Now you can go out and get those reds

‘Cause the only good commie is the one that’s dead

And you know that peace can only be won

When we’ve blown ’em all to kingdom come.

 

And it’s one, two, three,

What are we fighting for?

Don’t ask me, I don’t give a damn,

Next stop is Vietnam;

And it’s five, six, seven,

Open up the pearly gates,

Well there ain’t no time to wonder why

Whoopee! we’re all gonna die.

 

Come on mothers throughout the land,

Pack your boys off to Vietnam.

Come on fathers, and don’t hesitate

To send your sons off before it’s too late.

And you can be the first ones in your block

To have your boy come home in a box.

 

And it’s one, two, three

What are we fighting for?

Don’t ask me, I don’t give a damn,

Next stop is Vietnam.

And it’s five, six, seven,

Open up the pearly gates,

Well there ain’t no time to wonder why,

Whoopee! we’re all gonna die.

 

Thanks to Dr Stuart Jeanne Bramhall for bringing the song to mind. Visit her blog The Most Revolutionary Act . . .

And Thom Hickey. If you haven’t visited his Immortal Jukebox, you really should!

Who is that economist working for?

41wtMZTrtVL._SX327_BO1,204,203,200_

If you believe that . . .

Economics has been called the dismal science. Well, “dismal” it may be, certainly in the way it is used to justify the gross inequalities in the distribution of our planet’s wealth – but “science”? Possibly a “human” science, ranking with other notoriously imprecise fields of human knowledge such as psychology and sociology.

I have noted previously that Alfred Nobel did not include economics in his list of prizes. Not only did he think it unfit to sit alongside the true sciences (physics, chemistry, physiology, medicine), he didn’t even consider it as objectively assessable as Literature and Peace!

Bearing that in mind, then, it seems to me that I have as much right as anyone to have my ideas on the subject taken seriously. It could even be argued that the views of a high profile rugby player in New Zealand have greater validity than those of a former Governor of my country’s Reserve Bank.

We are all aware that high-level sport these days is mostly about money, and economics has inserted its dismal finger so that honesty, fair play, clean living and sportsmanship now rank well down the list of priorities. The home ground of Istanbul’s Beşiktaş football club, formerly commemorating the republic’s second president and close friend of Mustafa Kemal Atatürk, has recently been rebuilt and reopened as the Vodafone Arena, commemorating . . . the power of money.

banksters-300x199It’s a brave sportsman or woman these days who can cite moral principles to his or her paymasters as Sonny Bill Williams has done in New Zealand. Williams has the advantage of being an extremely valuable property, moving seamlessly between two rugby “codes” (league and union) in a way that would once have been frowned upon. So, when he announced that he would not wear a team strip emblazoned with the logo of the Bank of NZ, he opened a can of worms. Williams is, apparently, a Muslim, and follows that religion’s injunction against usury – the lending of money at interest.

A columnist for the NZ Herald, Brian Gould, picked up on Williams’s moral stand, writing an opinion piece entitled “Banking should be under closer Government control”. Supporting the Muslim rugby player’s position, Gould said, Most people believe, and it is a belief assiduously promoted by the banks themselves, that the banks act as intermediaries between those wishing to save and those wishing to borrow, usually on mortgage. . . But this benign view of their operations is inaccurate and misleading. The banks do not lend you on mortgage money deposited with them by someone else. They lend you money that they themselves create out of nothing, through the stroke of a pen or, today, a computer entry.”

The next day, the Herald published a reply from a gentleman by the name of Don Brash insisting that both Williams and Gould were wrong.

“Mr Gould is not alone in peddling this nonsense, but that certainly doesn’t make it correct.

How the Fed works

How the banking system creates MONEY. Money is not wealth, especially if you have to borrow it at commercial interest rates. (Source: Time Magazine)

“The banking system does create money. When Bank A lends money to one of its customers, the customer may use those funds to buy something from somebody who banks with Bank B. Bank B then finds itself with an additional deposit, a part of which it can lend out to its customers (keeping some of the additional deposit as a liquidity reserve). So an initial loan may end up considerably increasing the total lending by the banking system.

“If individual banks really could create money by “the stroke of a pen or a computer entry”, as Mr Gould contends, why do they bother paying interest on deposits, why do they borrow funds from parent banks overseas, why do they borrow funds in the international market, why do they need to hold some funds in government securities as a liquidity reserve, why do some banks occasionally run out of money when customers lose confidence in them?

As well as being a former Governor of the Reserve Bank, I now chair the small New Zealand subsidiary of the Industrial and Commercial Bank of China, the largest bank in the world. It would certainly make life very much easier if we could, “by the stroke of a pen or a computer entry”, simply create the money which we lend out to New Zealand borrowers. Unfortunately, we can’t.” (My highlighting)

Pinocchio

Would I lie to you?

So, according to Brash, Gould and Williams are wrong – but the banking system does create money. Huh? Look at the weasel words in the last sentence. OK, that’s not how they do it exactly, Don. And Bill Clinton did NOT have sex with that woman.

As I hinted above, Don Brash was Governor of New Zealand’s Reserve Bank from 1988 to 2002. He has held academic positions at several universities at home and abroad, sat in big chairs in large offices in several well-known banks, and even been involved in politics at the highest level. Clearly he, and the editor of the NZ Herald, and other naïve souls too for all I know, believe his words carry the power of gospel truth in matters of economics.

Look closer, though, and ask yourself if a guy who works at the upper levels of banking administration can possibly express publicly an unbiased view of the workings of the banking system.

Check the guy’s record, and you’ll see that he is a loser from way back. His first foray into politics was in 1980 as National Party candidate for the “safe” National seat of East Coast Bays. He lost, not to the main opposition Labour Party, but to an opponent representing Social Credit, a party whose main platform was exactly the view of banks expressed by Messrs Williams and Gould. That was a by-election. He failed to win the seat back in the General Election of 1981 and was dumped.

es514f00bfSomehow he managed to get himself elected as leader of the parliamentary National Party, despite his inability to actually win an electoral seat – holding the position from 2003 to 2006, then resigning from Parliament in 2007 to take up another academic post as economics guru.

He returned to politics in 2011 as leader of the right wing ACT Party, holding the post for seven months before resigning again after failing to make any impact in that year’s General Election. Clearly the average New Zealand voter is more perceptive than those who appoint general managers in banks or professors of economics at universities.

Brash is a hired lackey of the capitalist establishment, and a loser whenever he has offered his services to the New Zealand public. I’m not going to stoop to discussing his private life. If you’re interested you can get an overview on his Wikipedia page.

How the US Uses War to Protect the Dollar

I’m reblogging this because it’s crucial that we all know how US Money Power is manipulating the entire world:

The Gods of Money William Engdahl (2015) The first video is a 2015 presentation by William Engdahl about his 2010 book The Gods of Money. It focuses on the use of US economic and military warfare to maintain the supremacy of the US dollar as the global reserve currency. As his point of departure, he […]

512-I1WyqFL._SX331_BO1,204,203,200_In 1971 when Nixon was forced to end the gold standard,* the gold-backed US dollar was replaced by the “petrodollar.” According to Engdahl, it was so named because of a secret agreement the US made with Saudi Arabia – in return for a guarantee that OPEC would only trade oil in US dollars, the US guaranteed the Saudis unlimited military hardware.

In this way, oil importing nations (most of the world) were forced to retain substantial US dollar reserves. This was the only way they could provide their economies with a continuous supply of oil.

In 1997 the US Treasury and Soros made a a similar attack on economies of Southeast Asia (Thailand, South Korea, Indonesia, Hong Kong, Laos, Malaysia, Philippines) that attempted to use currencies other than the dollar as their reserve currencies.

The second clip is a Guns and Butter radio interview with Engdahl. It focuses on a second area the Gods of Money covers, namely the long US battle to abolish their private central bank (aka the Federal Reserve) and end the ability of private banks to create money out of thin air (see How Banks Create Money Out of Thin Air).

via How the US Uses War to Protect the Dollar — The Most Revolutionary Act

How banks create money out of thin air

8e74d904f189e407614b2a0cd6393339

AND loaned out at interest! AND the depositor can still ask for his/her money back!

Let’s not get sidetracked. There’s actually more to the world’s problems than just Donald Trump and Turkey’s RT Erdoğan.

This is clip is from a NZ source – but the same situation exists the world over:

http://tvnz.co.nz/seven-sharp/paying-interest-loan-never-existed-video-5336329

The ending is a bit weak – so you only need to watch the first few minutes.

WTF? – Some thoughts on money, banking and global slavery

swiss-bankingHats off to the Swiss! I never thought I’d see the day when an initiative to reform money and banking originated in in that little haven for the world’s mega-rich to stash their ill-gotten gains! Just goes to show how much things have changed/are changing!

I hope and pray promoters of the move can get the message across to enough of their fellow citizens before the referendum is held – and I imagine they will have plenty of opposition. The Swiss have this nifty system whereby, if a petition carrying enough signatures is presented to their parliament on any issue, it automatically triggers a national referendum.

vollgeld-banner-de

Working for sovereign money

The Vollgeld Initiative did just that – and the government is now committed to asking their people whether they want to remove from private bankers the right to create money. Well, you can bet those bankers won’t let that happen without a hell of a fight! If our experience in New Zealand with the referendum on electoral reform is any indicator (and I’m sure it is), the forces of established finance and capitalism will focus all their considerable might on retaining their inalienable right to rip off their fellow earthlings to feed their own greed.

No date has as yet been set for the referendum – and no doubt large sacks of Swiss francs will be expended by interested parties on mounting a huge propaganda campaign to persuade Swiss voters that supporting the Vollgeld Initiative will herald in the end of the world as we know it. Others might argue that would not be altogether a bad thing!

Up until the 1980s we had a political party in New Zealand committed to doing exactly what those Vollgeld people want to do. The Social Credit movement won twenty-one per cent of votes cast in our 1981 General Election, but was denied fair representation in parliament by the ludicrously undemocratic electoral system operating in those days. Nevertheless, shocked out of their complacency by the strength of public support, the forces of reaction combined to deprive Social Crediters of even their minimal parliamentary representation and effectively wiped out the party as a voice for change.

homeless

NZ today – Paradise lost

According to Knight Frank Research, New Zealand now has “the world’s most frenetic property market”, with houses in Auckland selling for an average of $NZ 1 million. Young New Zealanders starting out in life are naturally unhappy they can’t afford to buy a house – something that previous generations took for granted. They are blaming, with some justification, foreign (and local) “investors” for driving up prices. But check this out: an article in the NZ Herald finance section noted, more or less as an aside, that “banks are having to borrow more money on the international market to fund their lending because of a slow-down in retail deposit growth.” So, can someone please explain why banks in New Zealand have to borrow US dollars (I suppose) from abroad and convert them into NZ dollars to lend to people in their own country?

Point One: Banks do not lend the money deposited in accounts to other borrowers. They actually create new money for lending by means of the fractional reserve system (see below).

Point Two: I understand that, if I want to import goods from abroad into New Zealand, I will probably have to use some internationally accepted currency – or work out some kind of bilateral agreement (see below). I totally fail to see, however, why I should have to borrow foreign currency from an offshore bank, and convert it into NZ dollars for spending on something, such as a house, that already exists in my country.

dollars_ap

Good as gold?

The United States government is currently holding in custody an Iranian gentleman with Turkish citizenship, Reza Zarrab, on charges of money laundering. The charges relate to transactions that came to light in December 2013. It seems that Zarrab was facilitating a deal involving the Iranian and Turkish governments, a major Turkish bank, and a large amount of gold, with the aim of circumventing a United States trade embargo on Iran.

Well, certainly it’s not a nice thing to go behind your friend’s back and make deals to his detriment – but let’s look at the background. The United States slapped trade sanctions on Iran in 1979 after an Islamic revolution ousted the Shah, a US puppet who had ruled the country since a CIA-sponsored coup overthrew the democratically elected government of Mohammed Mossadegh in 1953. The revolution came after 26 years of misrule during which the rights of most Iranians were subordinated to the interests of the United States oil lobby and a local elite. The Ayatollah Khomeini came to power, 52 American diplomats were taken hostage and held for 444 days, President Jimmy Carter’s reputation was irreparably tarnished, and anyone who wanted to remain friends with America was obliged to cut ties with Iran.

Turkey and Iran are next-door neighbours. They are Muslim countries and their people have a history of close ties going back millennia. They are natural trading partners, and both have goods and services the other needs and wants. Turkey complied with the US’s trade embargo for decades, at considerable cost to its own economic well-being. It’s not always easy, however, for America’s allies to know what they have to do to keep Uncle Sam happy, since his government has a record of switching allegiances and stabbing former allies in the back to suit the short-term interests of its financial backers.

Increasingly, sovereign governments are looking at ways of implementing bilateral deals with trading partners to avoid having to use American dollars and comply with self-seeking American restrictions. Russia, China, and now Turkey all seem to be looking into this very sensible strategy.

Nevertheless, they have to be careful. It may look like common sense, but the present world financial order was set up for a reason – and it wasn’t just to facilitate international trade, and certainly not to improve the lot of the common man and woman in every corner of the globe. The international financiers who control most of what goes on in the world have ways of enforcing compliance with their will, or at least of punishing governments that fail to comply.

57427fd544f64

Migrant workers in Saudi Arabia. Spot the Arab

The United States government propped up financially and militarily the despotic 29-year regime of Hosni Mubarak in Egypt. When an Arab Spring uprising forced Mubarak’s removal, and Egypt’s first democratic election chose a Muslim to replace him (as you might expect an overwhelmingly Islamic country to do), the mavens of global finance withdrew their support, precipitating an economic crash that led to Mohammed Morsi’s ousting and the reinstatement of a military junta.

Venezuela, possessor of the world’s second-largest oil reserves, is currently experiencing a disastrous economic crisis largely as a result of plunging oil prices. Global oil prices are at their lowest levels for fifteen years, primarily because of the US transforming itself from an importer to an exporter of crude oil. Why would they risk the enormous long-term environmental damage of the oil fracking process? The US has a long history of interfering to ensure the failure and collapse of socialist governments in Central and South America. US-friendly Saudi Arabia can see out a period of low oil prices. Most of their labour force are indentured workers from impoverished Asian nations – unlike Venezuela, whose government has been trying for years to improve the lot of its own poorest citizens.

Turkey’s currency has taken a hammering in recent months on international “money markets”, losing more than 25% of its value since September. My theory is foreign interests opposed to Turkey’s President Tayyip Erdoğan supported local factions in their coup attempt on 15 July. Frustrated by its failure, the attack has turned to a slower but possibly surer method – attacking the nation’s currency to create economic hardship and strengthen local opposition to the AK Party government. For his part, Mr Erdoğan has encouraged citizens to show faith the Turkish Lira and sell off any stockpiles they may have of Yankee dollars.

forex

F*** the government and the country – buy dollars!

Interestingly, soon after the presidential appeal, a large advertising hoarding appeared in a major thoroughfare near us, urging people to do the opposite, to buy foreign currency! I did my civic duty and complained to the metropolitan council – and the ten-metre billboard has now been removed.

But to return to the Swiss banking reform movement. The people behind the Vollgeld Initiative have set up a website providing answers to crucial questions. Here’s a brief summary:

What is sovereign money?

Most people believe that the money they have in their bank accounts is real money i.e. real Swiss Francs (or pounds Sterling etc). This is wrong! Money in a bank account is only a liability of the bank to the account holder, i.e. a promise the bank makes to provide money, but it is not itself legal tender. 

What would change with the Swiss Sovereign Money Initiative?

The way the money system works today doesn’t comply with the intention of the Swiss Constitution (Article 99: “The Money and Currency System is a matter of the State”). 

What are the fundamental advantages of sovereign money?

Sovereign money in a bank account is completely safe because it is central bank money. It does not disappear when a bank goes bankrupt. Finance bubbles will be avoided because the banks won’t be able to create money any more. The state will be freed from being a hostage, because the banks won’t need to be rescued with taxpayers’ money to keep the whole money-transaction system afloat i.e. the “too big to fail” problem disappears. The financial industry will go back to serving the real economy and society. The money and banking systems will no longer be shrouded in complexity, but will be transparent and understandable.”

housing-crises

I admit it – It was me!

A recent article in The Economist, while predictably coming out against the proposed monetary reform, nevertheless does provide a delightfully simple analogy to illustrate how the present system works:

“Children are sometimes reassured that new siblings arrive via friendly storks. The reality is messier. Money creation is much the same. The ‘stork’ in this case is the central bank; many think it transfers money to private banks, which act as intermediaries, pushing the money around the economy. In reality, most money is created by private banks. They generate deposits every time they make a loan, a process central banks can influence but not control. That alarms some, who worry that banks use this power heedlessly, thereby stoking disruptive booms and busts.

Campaigners in many rich countries want to strip private banks of the power to create money. In Switzerland members of the “Vollgeld Initiative” presented the government with enough signatures in December to trigger a national referendum on the subject. Bank deposits, they point out, make up some 87% of the readily available money in Switzerland, vastly exceeding notes and coins. Since money creation is the main fuel of both inflation and growth, they argue, it should not be in private hands, let alone entrusted to institutions that are prone to binge and purge.”

Simple enough, huh? If I were you, I’d cut and paste those two paragraphs into my next blog post so that all my readers could learn the truth.

Who’s Behind the Attempted Coup in Turkey?

“I am deeply hurt!”

Blond John Bass

More than just another bimbo

It was John Bass, United States’ Ambassador to Turkey speaking in an interview with several Turkish journalists reported in our local daily on Sunday. He had been asked for his evaluation of the failed coup attempt on 15 July, and said he was deeply hurt that some commentators were suggesting, without a scrap of proof, that the United States had had prior knowledge of, and may even have had a finger in it. In fact, there was nothing in the report to say that any of the journalists present had even implied such a thing, so it may be that the ambassador “doth protest too much.”

As usual with diplomats, lawyers and politicians, however, the wording of the denial is very important. The honourable ambassador, you will note, is not hurt that his government is being accused, but that they are being accused without a scrap of proof. Well, of course, it’s not easy to prove these things at the time – the evidence tends to come out much later. Spooks are notoriously good at covering their tracks. It’s their job. Turkey’s political leaders also have to be particularly careful with the wording of their statements, whatever their suspicions, or even evidence, may be. President Erdoğan has been quoted as saying, “Gulen’s followers “are simply the visible tools of the threat against our country. We know that this game, this scenario is far beyond their league.”

The Brothers

Probably they would have been deeply hurt too

Turkey experienced three full-on military coups between 1960 and 1980, and there is ample evidence for CIA involvement. In recent years there has been much written on the subject of Gladio, an Italian word referring to CIA and NATO-sponsored secret armies that “colluded with, funded and often even directed terrorist organizations throughout Europe in what was termed a ‘strategy of tension’ with the aim of preventing a rise of the left in Western European politics.” American writer and journalist Stephen Kinzer published a book “The Brothers” in 2013 in which he details the activities of John Foster and Allen Dulles who, as head of the CIA and Secretary of State in the 50s and early 60s instigated “six regime-change operations . . . Iran, Guatemala, Indonesia, Vietnam, Cuba, and the Congo, including the first presidentially authorized assassinations of foreign leaders in American history.”

Mr Bass, you guys have a long history of removing, or attempting to remove, leaders of sovereign nations whose policies and activities don’t meet with your approval. So don’t come the raw prawn with us!

Dear readers, you may think the following notes on falling oil prices have nothing to do with a failed military coup in Turkey, but don’t be too hasty.

I read an interesting article in the Daily Telegraph a week or so ago entitled Texas shale oil has fought Saudi Arabia to a standstill. Quoting a number of sources, the article was lauding the success of the shale oil industry in reducing the costs of the fracking process, enabling the United States to meet its own needs and drive down the global price of oil, thereby dealing a severe blow to the OPEC countries who, as we all know, are Muslim Arabs. The headline and much of the text focuses on Saudi Arabia and the damage the US is inflicting on the Saudi economy with its industrial might.

A recent article in The Economist purported to explain, in a similar vein, why oil prices are falling so low on the world market. The two main factors put forward were:

  • America has become the world’s largest oil producer, and
  • The Saudis and their Gulf allies have decided not to sacrifice their own market share to restore the price.

fracking dangersWell and good, but let’s take a closer look. First of all, how has the US suddenly gone from being a major importer of oil, to the world’s largest producer? By fracking shale oil is the answer. What’s that all about, you may ask. Like any other natural resource, supplies of oil run out as you consume the stuff. The United States has long since used up all its easily accessible supplies of oil, and found it cheaper to buy elsewhere. They still have oil, of course – that Telegraph article claims the Permian Basin in Texas has as much as Saudi Arabia’s largest oil field – but it’s not easy to get at. Enter the fracking process. Wikipedia explains: “The process involves the high-pressure injection of ‘fracking fluid’ (primarily water, containing sand or other proppants suspended with the aid of thickening agents) into a wellbore to create cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely.” There are serious environmental concerns with this:

  • The process requires huge amounts of water, which inevitably becomes contaminated, even if it does return to the surface, and a lot of it doesn’t.
  • There seems to be some secrecy in the industry about chemicals used in the process.
  • Large areas of land are rendered unsuitable for other uses, including wildlife.
  • There is enormous noise pollution, both from the process itself and from convoys of trucks bringing sand and other necessary materials to the site.
  • There is also a danger of increased seismic activity resulting in earthquakes.

For these reasons, the extraction of oil by hydraulic fracturing (fracking) is under international scrutiny, and has been banned outright in some countries.

Wall St crooks

Where do you slot in?

According to a source quoted in that Telegraph article, much of the finance for the fracking industry is being supplied by Wall Street private equity groups such as the Blackstone and Carlyle Groups. Of course wise investment is an important motive for those businesses, but some might argue that equally important is the need to keep the world safe for capitalism. Daniel Rubenstein, one of Carlyle’s founders is identified in his Wikipedia biography as “financier and philanthropist”. He is also credited with having foreseen, in 2006, that private equity “activity” was about to crash – which it did indeed – but predicted in 2008 that the lean period would soon be over and he and his cronies would be back sucking the world dry more profitably than before. Three big cheers for philanthropy, people!

Do I sound sceptical? Apart from the involvement of Mr Rubenstein and his “philanthropic” ilk, I have other reasons. My primary concern is I do not believe Saudi Arabia is the main target of US strategy here, nor is a desire to be self-sufficient in oil production for its own sake, and I’ll tell you why.

Saudi Arabia is a firm ally of the United States, and the single biggest customer of the US arms industry. What do they do with all that military hardware, given that they don’t seem to be directly involved in any actual wars, to the best of my knowledge. Another source in that Telegraph article asserts that the Saudis are proxy suppliers of military hardware to Egypt and “an opaque nexus of clients in the Saudi sphere.” Whose proxy? No prizes for guessing that one! Furthermore Saudi Arabia has ample foreign reserves and its oil is very cheap to extract. It is well placed to withstand a long siege of low oil prices without seriously affecting the bloated lifestyle of its citizens.

OPEC, however, is not just composed of Middle Eastern Arabs and Muslims. Venezuela, with the world’s second largest oil reserves, was one of the five founding members of OPEC in 1960. Also in the group are Ecuador, Indonesia and several African countries with low per capita incomes: Libya, Algeria, Nigeria, Gabon and Angola. Do you see any countries in that list that Wall Street financiers might not love? Ecuador and Venezuela have been at the forefront of South American Bolivarian socialist progress for two decades. Rafael Correa and his neighbour Hugo Chavez began the process of nationalising their countries’ resources and using them to raise living standards for all their people, and Chavez’s successor Nicolas Maduro has continued on the same track.

USA wants Venezuela

When the fracking’s over . . .

In 2002 a military coup in Venezuela succeeded in overthrowing President Chavez, but after huge demonstrations of public support, the generals handed the reins of government back 47 hours later. According to Wikipedia, In December 2004, The New York Times reported on the release of newly declassified intelligence documents that showed that the CIA and Bush administration officials had advance knowledge of an imminent plot to oust President Chavez, although the same documents do not indicate the United States supported the plot.” Well, they wouldn’t, would they? Not a scrap of evidence, as the US Ambassador to Turkey would say. However, those Wall St financiers don’t give up easily, and they don’t have to win elections to stay in power. There is more than one way to bring down a government you don’t like. Ask Egypt’s Mohammed Morsi.

I came across an article in Global Research last month entitled US-Led Economic War, Not Socialism, is Tearing Venezuela Apart. The writer, Caleb T Maupin, argues, The political and economic crisis facing Venezuela is being endlessly pointed to as proof of the superiority of the free market . . . In reality, millions of Venezuelans have seen their living conditions vastly improved through the Bolivarian process. The problems plaguing the Venezuelan economy are not due to some inherent fault in socialism, but to artificially low oil prices and sabotage by forces hostile to the revolution . . . The goal is to weaken these opponents of Wall Street, London, and Tel Aviv, whose economies are centered around oil and natural gas exports”.

NIGERIA POVERTY

A Nigerian child’s share of his nation’s oil wealth

Who benefits from this economic war? No prizes for guessing that one either. Who suffers? Well, that’s pretty obvious too. The people of Venezuela and Ecuador in the short term, of course – but more so in the long term if the populist economic reform process can be derailed. The people of those African oil-rich countries, Libya, Algeria, Nigeria, Gabon and Angola, certainly, if the multi-national oil companies can retain their control of production. But there are others too, who receive even less publicity: the millions of migrant labourers from India and other poor countries who have been working in Saudi Arabia and other wealthy states in the region. A news report ten days ago revealed  that the Indian government had come to the rescue of more than ten thousand of their citizens starving in Saudi Arabia. 16,000 kg of food was distributed by the consulate in Jeddah to penniless workers who had lost their jobs and not been paid. The report claimed that there are more than three million Indians living and working in Saudi Arabia, and more than 800,000 in Kuwait, many of whom have not been paid for months after factories closed down, and employers are refusing to feed them. The Indian government is taking steps to evacuate as many as possible.

Supporting Turkey

Wink, wink, nudge, nudge . . .

It seems there are many ways the world’s sole remaining super power and its financial backers can get rid of “unfriendly” foreign governments and individuals:

  • Invasion and total destruction is one;
  • Drone strikes are more incisive and undoubtedly cheaper;
  • CIA-sponsored military coups have had some success;
  • Destroying a country’s economy is slower, but leaves less obvious dirt on the hands of the perpetrators, and has the additional advantage of inciting the people of the targeted country to oust the government themselves.

It is clear that the United States, or at least the small amoral power group who control it, do not care if they irreparably destroy their country’s natural environment, nor how many helpless, innocent people at home and abroad suffer for their greed. The US Ambassador to Turkey may be deeply hurt – but I doubt it. Any moisture you see in his eyes will surely be crocodile tears.