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Monday, May 28, 2007

Trashing Organic Standards


By Kirk James Murphy, M.D.


Part I

Organic food standards are the firewall protecting us from chemicals and mutant foods. Of course, the standards are under sustained attack, and this week was no exception.

Why bother with organic food? Even the Bushies can’t hide the answer.

In 2005, the National Academy of Sciences, EPA, USDA, and FDA together concluded:

- ….children receive 50% of their lifetime cancer risks in the first two years of life.
- According to [the] FDA, half of produce currently tested in grocery stores contains measurable residues of pesticides. Laboratory tests of eight industry-leader baby foods reveal the presence of 16 pesticides, including three carcinogens.
- In blood samples of children aged 2 to 4, concentrations of pesticide residues are six times higher in children eating conventionally farmed fruits and vegetables compared with those eating organic food.
- According to [the] Dept. of Health and Human Services, organophosphate pesticides (OP) are now found in the blood of 95% of Americans tested. OP levels are twice as high in blood samples taken from children than in adults. Exposure to OPs is linked to hyperactivity, behavior disorders, learning disabilities, developmental delays and motor dysfunction. OPs account for half of the insecticides used in the U.S.
- The CDC reports that one of the main sources of pesticide exposure for U.S. children comes from the food they eat.

So everyone wants healthy food free of pesticides and genetic experiments, right?

Everyone except Big Industrial Food, Big Ag, and Big AgChem (aka Big Bug Spray).

The USDA defines “organic” food in the US. The USDA organic standards specifically protect us against toxic substances (herbicides, pesticides, fungicides) spread over our foods as well as protecting against foods that are themselves toxic (genetically engineered/modified foods – aka GMOs).

Current US organic standards largely forbid pesticides and wholly forbid GMOs.

The megacorps that bring us toxic hog farms, toxic junk food, and deadly harvests want to "help" the USDA by defining down "organic" standards to include all manner of toxic crap.

This week’s example of the USDA trashing organic standards

When you buy organic foods, you expect organic ingredients, right?

Silly consumer.

Last week the USDA unveiled their new “standards” for 39 food materials. Amazingly enough, all 39 proposed “standards” simply declare chemicals or chemically grown foodsstuffs can now be hidden in foods labelled “organic”.

The comment period ended Tuesday, May 22.

Big Industrial Food (and their colleagues temporarily on detail as Bushie political appointees at USDA) have been chewing this over for years. The Bushies at USDA generously gave the public seven days of comment (instead of the usual 30 or 45) on the latest loopholes Big Ag and Big Bug Spray found for our tables.

Big Ag and Big Bug Spray have entered their “Harry Potter” phase. They want the USDA to magically declare:

Chemically grown rice magically produces organic rice starch
Chemically grown hops magically make organic beer.
Chemical cheese from chemically raised milk magically contains organic whey protein
Chemical fish raised in pens and fed nothing but artificial food pellets and antibiotics will – when passed through industrial grinders – magically produce organic fish oil.

Big Ag and Big Bug Spray believe in magic. Who knew?

Hey, maybe they just couldn’t admit it while Falwell was around.

~~~~~~~~~~

More Trashing Organic Standards


PART II

Want to know about Congress’ most recent effort to trash organic foods?

Genetically engineered (genetically modified) foods - coming to poison meals and fields near you.
If they haven't already.

Market surveys around the planet show nobody wants to eat mutant meals. In the US, GMO labs made certain the USDA and FDA would not tell us this crap is in our food. That's why most Americans have no clue that:

“Currently, up to 45 percent of U.S. corn is genetically engineered as is 85 percent of soybeans. It has been estimated that 70-75 percent of processed foods on supermarket shelves–from soda to soup, crackers to condiments–contain genetically engineered ingredients

GMO’s – commonly known as Frankenfoods or Frankenseeds - are the ultimate pollutants.

They copy themselves with each harvest season, contaminating the normal plants around them with genetically modified pollen.

All non-GM farmers in North America are finding it very hard or impossible to grow GM-free crops. Seeds have become almost completely contaminated with GM organisms (GMOs), good non-GM varieties have become hard to buy, and there is a high risk of crop contamination.'

So a bunch of farmers plant different seed. Who cares? What does that mean to us city folk?

Genetically modified organisms are plant (or animal) mutants with alien species’ DNA forced into their genetic material. Unlike conventional plant or animal breeding, many Frankenseeds are not genetically stable. Their genetic instability means that each successive generation can express new genes, and so each generation has unpredictable new proteins.

But protein is good, right? That’s what we eat. Proteins are like people. Some proteins help us – some kill us. Egg protein nourishes us; castor bean protein (ricin) is a deadly poison. Edible mushrooms taste good because of proteins that affect our taste buds. Poison mushrooms kill because of proteins that affect our livers.

Over the past several thousand years, what we know as agriculture was the slow process of finding which plants killed us and which plants fed us, and then getting good at growing the ones that fed us.

Thousands of years of trial and error figuring out which plants had toxic proteins. Less than two decades of Frankenseeds later, GMO potatoes, soy, and corn have turned back the clock to 10,000 BC.

What proteins do these GMO mutants actually make? What happens when we eat this stuff?

Nothing good.


GMO corn, soy, and potatoes show toxic effects on living animals.

The GMO soy (Monsanto’s Roundup-Ready soy) we grow and eat in the US is so toxic that more than half of baby rats fed with the stuff die in just three weeks.

Hey - it's only 85% of the US soy crop, right?


The rest of the planet doesn’t want to eat this crap any more than we do. In the EU and other nations where GM foods are labelled as such, demand is zero. US export markets for rice and corn (maize) have been severely damaged by GM contamination.

To protect the public and organic farmers, four California counties banned GMO crops. Rice farmers in Arkansas and California protected their crops with laws preventing contamination by GMO crops. In fourteen other states, local and or state laws ban GMO’s.

GMO’s banned in part or all of sixteen states - almost a third of the US is protected from mutant food, right?

Not any more – the GMO labs did an end run yesterday in the House Subcommittee on Livestock, Dairy and Poultry, and the GMO labs won. Sec 123 of the new Farm Bill effectively precludes local control over GMO contamination.


If the Farm Bill passes with Sec 123, our sole protection against toxic GMO foods will be the USDA organic standards.

Until the GMO labs and their servants at USDA get rid of them.

But don’t worry – we’ll have seven days to comment.

Bon appetit.

Source:
http://www.firedoglake.com/2007/05/26/trashing-organic-standards/
http://www.firedoglake.com/2007/05/28/more-trashing-organic-standards/_________________

Saturday, May 26, 2007

Moscow, Idaho Shooter: US Government Agent?


Revisonist History
May 23, 2007


According to an article in the Spokane, Washington "Spokesman-Review" newspaper, Jason Hamilton, the shooter who killed three people and himself in Moscow, Idaho last weekend was a card-carrying member of the heavily government-infiltrated Aryan Nations group, as well as a criminal with a long arrest record and someone who was "licensed by the federal government to possess fully automatic weapons, including a military-style machine gun..."

While automatic weapons were not used by Hamilton during his killing spree, it is nevertheless true that an automatic weapons license issued by the Bureau of Alcohol, Tobacco and Firearms is very difficult to obtain and persons who apply for the license are closely scrutinized by government agents.

Hamilton had been affiliated with the Aryan Nations group for the past seven years. He "had an extensive criminal record in Idaho, Arizona, California and Oklahoma." He was convicted of domestic battery in 2006, aggravated assault in 1992 and marijuana possession in 1996.

It seems possible that Hamilton was a government agent or informant who had infiltrated Aryan Nations, otherwise how would he ever have been granted the coveted fully automatic weapons license?

Note well this quote from the Spokesman-Review:

"...shortly ...after (he) became a member of the Aryan Nations...Hamilton was arrested in Latah County for shooting at a building or a car, but the charge was reduced through a plea bargain, incomplete court records show."

So what was the plea bargain? Having him turn government informant on Aryan Nations and then eventually moving him higher up the shadow government's ladder, to the point of privileged possession of automatic weapons?

The question investigators need to ask is: what role did the US government play in their (probable) agent's terror spree last weekend in Moscow, near the campus of the University of Idaho and on the grounds of the Latah County Courthouse?

Is this terror for terror's sake? "Getting the fear"? Man's government needs to sow fear and terror if they wish to retain their power over us. Jason Kenneth Hamilton may have been an instrument toward that end.

How else would a clearly unstable "extremist" with a criminal record, legally obtain automatic weapons, and plea bargain a circa 1999 or 2000 shooting, into an inconsequential (and unspecified) sentence, about which conveniently "incomplete records" are silent?

Sources:
http://revisionistreview.blogspot.com/2007/05/moscow-idaho-shooter-us-government.html
http://www.spokesmanreview.com/breaking/story.asp?ID=9959
http://tinyurl.com/2blkby
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Monday, May 21, 2007

Who's Afraid of Jimmy Carter?
George Bush


By John Nichols
The Nation
May 20, 2007


How touchy is the Bush administration about criticism?

Very touchy, indeed, especially if the source of that criticism is a certain former president.

When Jimmy Carter, whose approval ratings dwarf those of George Bush these days, gets to talking about what's wrong with the current president the White House spin machine goes into overdrive.

And Carter has been talking.

He told the conservative Arkansas Democrat-Gazette newspaper Saturday that, "I think as far as the adverse impact on the nation around the world, this administration has been the worst in history."

Suggesting that the president has presided over an "overt reversal of America's basic values," Carter drew a clear line of distinction between the current Bush policies and those of another Bush who has occupied the Oval Office, former President George Herbert Walker Bush.

With his misguided approach to the war in Iraq, Carter said, Bush made a "radical departure from all previous administration policies," including those of the president's father.

"We now have endorsed the concept of pre-emptive war where we go to war with another nation militarily, even though our own security is not directly threatened, if we want to change the regime there or if we fear that some time in the future our security might be endangered," explained Carter, who has long been a critic of the Bush administration but whose comments in recent days have been particularly pointed.

In another interview late last week, with the BBC, Carter effectively referred to outgoing British Prime Minister Tony Blair as Bush's poodle.

Carter criticized Blair's "blind" support of Bush's war in Iraq, suggesting that the British prime minister had been "subservient" to the American president. Noting that Blair's "almost undeviating" allegiance to Bush's Middle East dogmas had done much to legitimize them at precisely the time when they should have been challenged, Carter argued that the prime minister's promotion of "the ill-advised policies of President Bush in Iraq had been a major tragedy for the world."

Lest there be any doubt about his assessment of Blair's contribution to global stability, the Nobel Peace Prize winner termed the prime minister's failure to counter Bush's messianic march to war "abominable."

It is difficult to argue with Carter, not just on the basis of his stature but on the basis of his astute read of the current circumstance. And that's what scares the Bush White House. When a well regarded former president gets specific about the current president's dramatic failures -- and about the damage that is done when foreign leaders align with Bush -- this embattled White House gets tense.

So the president's aides are hitting back, with all the muscle they can muster, at Carter.

"I think it's sad that President Carter's reckless personal criticism is out there," griped White House spokesman Tony Fratto, as part of an unusually bitter and specific response issued Sunday from Bush's compound in Crawford, Texas.

In what the Associated Press correctly referred to as "a biting rebuke," Fratto said of Carter's observations: "I think it's unfortunate. And I think he is proving to be increasingly irrelevant with these kinds of comments."

The irony is that there is nothing unfortunate about Carter's remarks for the United States. By making it perfectly clear that Americans are unsettled by their president's reckless disregard for the rule of law and common sense at home and abroad, Carter helps to separate Bush from America in the eyes of the world, which is a very, very good thing for the American people.

Of course, then, the Bush White House is not attacking Carter's comments on their merit.

Rather, the attack boils down to a suggestion that, even though they represent a rare example of a former president bluntly criticizing a sitting president, Carter's remarks of a little or no consequence.

What is fascinating is that the White House is claiming that Carter is "increasingly irrelevant" by going out of its way to attack him on one of the current president's many days of rest.

It seems that, if Carter really was as "irrelevant" as the Bush White House would have us believe, the president's aides would not be attacking the former president in such immediate and aggressive terms.

The truth is that Carter is relevant, perhaps more so now than ever.

Even as Bush's fortunes decline, the need of dissenting voices is great. And Carter's dissents go to the very heart of the darkness that this administration has brought down upon the United States. For a body politic sorely in need of the tonic of truth, Jimmy Carter's comments are not just relevant, they are an essential to the renewal of a country and a planet badly battered by the madness of a 21st-century King George.

John Nichols' new book, THE GENIUS OF IMPEACHMENT: The Founders' Cure for Royalism has been hailed by authors and historians Gore Vidal, Studs Terkel and Howard Zinn for its meticulous research into the intentions of the founders and embraced by activists for its groundbreaking arguments on behalf of presidential accountability. After reviewing recent books on impeachment, Rolling Stone political writer Tim Dickinson, writes in the latest issue of Mother Jones, "John Nichols' nervy, acerbic, passionately argued history-cum-polemic, The Genius of Impeachment, stands apart. It concerns itself far less with the particulars of the legal case against Bush and Cheney, and instead combines a rich examination of the parliamentary roots and past use of the "heroic medicine" that is impeachment with a call for Democratic leaders to 'reclaim and reuse the most vital tool handed to us by the founders for the defense of our most basic liberties.'"

Source:
http://news.yahoo.com/s/thenation/20070520/cm_thenation/1197253
_____________________

Sunday, May 20, 2007

Ending the Empire


By Chalmers Johnson
TomDispatch.com
May 15, 2007


Way back in 1999, when I was still a Tomdispatch-less book editor, I read a proposal from Chalmers Johnson. He was, then, known mainly as a scholar of modern Japan, though years earlier I had read his brilliant book on Chinese peasant nationalism -- about a period in the 1940s when imperial Japan was carrying out its "3-all" campaigns (kill-all, burn-all, loot-all) in the northern Chinese countryside. The proposal, for a book to be called "Blowback" -- a CIA term of tradecraft that, like most Americans, I had never heard before -- focused on the "unintended consequences" of the Agency's covert activities abroad and the disasters they might someday bring down upon us. Johnson began with an introduction in which he reviewed, among other things, his experiences in the Vietnam War era when, as a professed Cold Warrior, a former CIA consultant, and a professor of Asian studies at Berkeley, he would have been on the other side of the political fence from me.

In that introduction, he recalled his dismay with antiwar activists who were, he felt (not incorrectly), often blindly romantic about Asian communism and hadn't bothered to do their homework on the subject. "They were," he wrote, "defining the Vietnamese Communists largely out of their own romantic desires to oppose Washington's policies." He added:

"As it turned out, however, they understood far better than I did the impulse of a Robert McNamara, a McGeorge Bundy, or a Walt Rostow. They grasped something essential about the nature of America's imperial role in the world that I had failed to perceive. In retrospect, I wish I had stood with the antiwar protest movement. For all its naïveté and unruliness, it was right and American policy wrong."

It was a reversal of sentiment to which no other American of his age and background, to the best of my knowledge, had admitted. It reflected a mind impressively willing to reconsider and change -- and, as it happened, it also reflected a man on a journey out of the world of Cold War anti-communism and into the heart of the American empire. When Blowback: The Costs and Consequences of American Empire finally came out in 2000, it was largely ignored (or derided) in the mainstream -- until, that is, September 11th, 2001. Then, "blowback," and the phrase that went with it, "unintended consequences," entered our language, thanks to Johnson, and the paperback of the book, now seen as prophetic, hit the 9/11 tables in bookstores across the United States, becoming a bestseller.

Johnson's intellectual odyssey had begun when the Cold War ended, when the Soviet Union disappeared and the American imperial structure of bases (and policy) in Asia remained standing, remarkably unchanged and unaffected by that seemingly world-shaking event. An invitation, five years later, to visit the heavily American-garrisoned Japanese island of Okinawa, in turmoil over a case in which two U.S. Marines and a sailor had raped a 12 year-old Okinawan girl, also strongly affected his thinking. There, Johnson saw firsthand what our global baseworld looked like and what it did to others on this planet. ("I was flabbergasted by the 37 American military bases I found on an island smaller than Kauai in the Hawaiian Islands and the enormous pressures it put on the population there… As I began to study it, though, I discovered that Okinawa was not exceptional. It was the norm. It was what you find in all of the American military enclaves around the world.")

Now, five and a half years after the 9/11 attacks, Johnson has reached the provisional end of his quest and the single prophetic volume, Blowback, has become "The Blowback Trilogy." In 2004, a second volume, The Sorrows of Empire, arrived, focused on how the American military had garrisoned the globe and how militarism had us in its grip; and finally, this year, a magisterial third and final volume, Nemesis: The Last Days of the American Republic, appeared. No one should miss it. It lays out in chilling detail the ways in which imperial overstretch imperils the American republic and what's left of our democratic system as well as the American economy.

Now, in a step beyond even his latest book, Johnson considers whether we can end our empire before it ends us. Tom


Evil Empire
Is Imperial Liquidation Possible for America?


By Chalmers Johnson

In politics, as in medicine, a cure based on a false diagnosis is almost always worthless, often worsening the condition that is supposed to be healed. The United States, today, suffers from a plethora of public ills. Most of them can be traced to the militarism and imperialism that have led to the near-collapse of our Constitutional system of checks and balances. Unfortunately, none of the remedies proposed so far by American politicians or analysts addresses the root causes of the problem.

According to an NBC News/Wall Street Journal poll, released on April 26, 2007, some 78% of Americans believe their country to be headed in the wrong direction. Only 22% think the Bush administration's policies make sense, the lowest number on this question since October 1992, when George H. W. Bush was running for a second term -- and lost. What people don't agree on are the reasons for their doubts and, above all, what the remedy -- or remedies -- ought to be.

The range of opinions on this is immense. Even though large numbers of voters vaguely suspect that the failings of the political system itself led the country into its current crisis, most evidently expect the system to perform a course correction more or less automatically. As Adam Nagourney of the New York Times reported, by the end of March 2007, at least 280,000 American citizens had already contributed some $113.6 million to the presidential campaigns of Hillary Rodham Clinton, Barack Obama, John Edwards, Mitt Romney, Rudolph Giuliani, or John McCain.

If these people actually believe a presidential election a year-and-a-half from now will significantly alter how the country is run, they have almost surely wasted their money. As Andrew Bacevich, author of The New American Militarism, puts it: "None of the Democrats vying to replace President Bush is doing so with the promise of reviving the system of check and balances.... The aim of the party out of power is not to cut the presidency down to size but to seize it, not to reduce the prerogatives of the executive branch but to regain them."

George W. Bush has, of course, flagrantly violated his oath of office, which requires him "to protect and defend the constitution," and the opposition party has been remarkably reluctant to hold him to account. Among the "high crimes and misdemeanors" that, under other political circumstances, would surely constitute the Constitutional grounds for impeachment are these: the President and his top officials pressured the Central Intelligence Agency to put together a National Intelligence Estimate (NIE) on Iraq's nuclear weapons that both the administration and the Agency knew to be patently dishonest. They then used this false NIE to justify an American war of aggression. After launching an invasion of Iraq, the administration unilaterally reinterpreted international and domestic law to permit the torture of prisoners held at Abu Ghraib prison in Baghdad, at Guantánamo Bay, Cuba, and at other secret locations around the world.

Nothing in the Constitution, least of all the commander-in-chief clause, allows the president to commit felonies. Nonetheless, within days after the 9/11 attacks, President Bush had signed a secret executive order authorizing a new policy of "extraordinary rendition," in which the CIA is allowed to kidnap terrorist suspects anywhere on Earth and transfer them to prisons in countries like Egypt, Syria, or Uzbekistan, where torture is a normal practice, or to secret CIA prisons outside the United States where Agency operatives themselves do the torturing.

On the home front, despite the post-9/11 congressional authorization of new surveillance powers to the administration, its officials chose to ignore these and, on its own initiative, undertook extensive spying on American citizens without obtaining the necessary judicial warrants and without reporting to Congress on this program. These actions are prima-facie violations of the Foreign Intelligence Surveillance Act of 1978 (and subsequent revisions) and of Amendment IV of the Constitution.

These alone constitute more than adequate grounds for impeachment, while hardly scratching the surface. And yet, on the eve of the national elections of November 2006, then House Minority Leader, now Speaker, Nancy Pelosi (D-Calif.), pledged on the CBS News program "60 Minutes" that "impeachment is off the table." She called it "a waste of time." And six months after the Democratic Party took control of both houses of Congress, the prison at Guantánamo Bay was still open and conducting drumhead courts martial of the prisoners held there; the CIA was still using "enhanced interrogation techniques" on prisoners in foreign jails; illegal intrusions into the privacy of American citizens continued unabated; and, more than fifty years after the CIA was founded, it continues to operate under, at best, the most perfunctory congressional oversight.

Promoting Lies, Demoting Democracy

Without question, the administration's catastrophic war in Iraq is the single overarching issue that has convinced a large majority of Americans that the country is "heading in the wrong direction." But the war itself is the outcome of an imperial presidency and the abject failure of Congress to perform its Constitutional duty of oversight. Had the government been working as the authors of the Constitution intended, the war could not have occurred. Even now, the Democratic majority remains reluctant to use its power of the purse to cut off funding for the war, thereby ending the American occupation of Iraq and starting to curtail the ever-growing power of the military-industrial complex.

One major problem of the American social and political system is the failure of the press, especially television news, to inform the public about the true breadth of the unconstitutional activities of the executive branch. As Frederick A. O. Schwarz and Aziz Z. Huq, the authors of Unchecked and Unbalanced: Presidential Power in a Time of Terror, observe, "For the public to play its proper checking role at the ballot box, citizens must know what is done by the government in their names."

Instead of uncovering administration lies and manipulations, the media actively promoted them. Yet the first amendment to the Constitution protects the press precisely so it can penetrate the secrecy that is the bureaucrat's most powerful, self-protective weapon. As a result of this failure, democratic oversight of the government by an actively engaged citizenry did not -- and could not -- occur. The people of the United States became mere spectators as an array of ideological extremists, vested interests, and foreign operatives -- including domestic neoconservatives, Ahmed Chalabi and his Iraqi exiles, the Israeli Lobby, the petroleum and automobile industries, warmongers and profiteers allied with the military-industrial complex, and the entrenched interests of the professional military establishment -- essentially hijacked the government.

Some respected professional journalists do not see these failings as the mere result of personal turpitude but rather as deep structural and cultural problems within the American system as it exists today. In an interview with Matt Taibbi, Seymour Hersh, for forty years one of America's leading investigative reporters, put the matter this way:

"All of the institutions we thought would protect us -- particularly the press, but also the military, the bureaucracy, the Congress -- they have failed… So all the things that we expect would normally carry us through didn't. The biggest failure, I would argue, is the press, because that's the most glaring…. What can be done to fix the situation? [long pause] You'd have to fire or execute ninety percent of the editors and executives."

Veteran analyst of the press (and former presidential press secretary), Bill Moyers, considering a classic moment of media failure, concluded: "The disgraceful press reaction to Colin Powell's presentation at the United Nations [on February 5, 2003] seems like something out of Monty Python, with one key British report cited by Powell being nothing more than a student's thesis, downloaded from the Web -- with the student later threatening to charge U.S. officials with 'plagiarism.'"

As a result of such multiple failures (still ongoing), the executive branch easily misled the American public.

A Made-in-America Human Catastrophe

Of the failings mentioned by Hersh, that of the military is particularly striking, resembling as it does the failures of the Vietnam era, thirty-plus years earlier. One would have thought the high command had learned some lessons from the defeat of 1975. Instead, it once again went to war pumped up on our own propaganda -- especially the conjoined beliefs that the United States was the "indispensable nation," the "lone superpower," and the "victor" in the Cold War; and that it was a new Rome the likes of which the world had never seen, possessing as it did -- from the heavens to the remotest spot on the planet -- "full spectrum dominance." The idea that the U.S. was an unquestioned military colossus athwart the world, which no power or people could effectively oppose, was hubristic nonsense certain to get the country into deep trouble -- as it did -- and bring the U.S. Army to the point of collapse, as happened in Vietnam and may well happen again in Iraq (and Afghanistan).

Instead of behaving in a professional manner, our military invaded Iraq with far too small a force; failed to respond adequately when parts of the Iraqi Army (and Baathist Party) went underground; tolerated an orgy of looting and lawlessness throughout the country; disobeyed orders and ignored international obligations (including the obligation of an occupying power to protect the facilities and treasures of the occupied country -- especially, in this case, Baghdad's National Museum and other archaeological sites of untold historic value); and incompetently fanned the flames of an insurgency against our occupation, committing numerous atrocities against unarmed Iraqi civilians.

According to Andrew Bacevich, "Next to nothing can be done to salvage Iraq. It no longer lies within the capacity of the United States to determine the outcome of events there." Our former ambassador to Saudi Arabia, Chas W. Freeman, says of President Bush's recent "surge" strategy in Baghdad and al-Anbar Province: "The reinforcement of failure is a poor substitute for its correction."

Symbolically, a certain sign of the disaster to come in Iraq arrived via an April 26th posting from the courageous but anonymous Sunni woman who has, since August 2003, published the indispensable blog Baghdad Burning. Her family, she reported, was finally giving up and going into exile -- joining up to two million of her compatriots who have left the country. In her final dispatch, she wrote:

"There are moments when the injustice of having to leave your country simply because an imbecile got it into his head to invade it, is overwhelming. It is unfair that in order to survive and live normally, we have to leave our home and what remains of family and friends.... And to what?"

Retired General Barry McCaffrey, commander of the 24th Infantry Division in the first Iraq war and a consistent cheerleader for Bush strategies in the second, recently radically changed his tune. He now says, "No Iraqi government official, coalition soldier, diplomat, reporter, foreign NGO, nor contractor can walk the streets of Baghdad, nor Mosul, nor Kirkuk, nor Basra, nor Tikrit, nor Najaf, nor Ramadi, without heavily armed protection." In a different context, Gen. McCaffrey has concluded: "The U.S. Army is rapidly unraveling."

Even military failure in Iraq is still being spun into an endless web of lies and distortions by the White House, the Pentagon, military pundits, and the now-routine reporting of propagandists disguised as journalists. For example, in the first months of 2007, rising car-bomb attacks in Baghdad were making a mockery of Bush administration and Pentagon claims that the U.S. troop escalation in the capital had brought about "a dramatic drop in sectarian violence." The official response to this problem: the Pentagon simply quit including deaths from car bombings in its count of sectarian casualties. (It has never attempted to report civilian casualties publicly or accurately.) Since August 2003, there have been over 1,050 car bombings in Iraq. One study estimates that through June 2006 the death toll from these alone has been a staggering 78,000 Iraqis.

The war and occupation George W. Bush unleashed in Iraq has proved unimaginably lethal for unarmed civilians, but reporting the true levels of lethality in Iraq, or the nature of the direct American role in it was, for a long time, virtually taboo in the U.S. media. As late as October 2006, the journal of the British Medical Association, The Lancet, published a study conducted by researchers from Johns Hopkins University in Baltimore and al-Mustansiriya University in Baghdad estimating that, since March 2003, there were some 601,027 more Iraqi deaths from violence than would have been expected without a war. The British and American governments at first dismissed the findings, claiming the research was based on faulty statistical methods -- and the American media ignored the study, played down its importance, or dismissed its figures.
On March 27, 2007, however, it was revealed that the chief scientific adviser to the British Ministry of Defense, Roy Anderson, had offered a more honest response. The methods used in the study were, he wrote, "close to best practice." Another British official described them as "a tried and tested way of measuring mortality in conflict zones." Over 600,000 violent deaths in a population estimated in 2006 at 26.8 million -- that is, one in every 45 individuals -- amounts to a made-in-America human catastrophe.

One subject that the government, the military, and the news media try to avoid like the plague is the racist and murderous culture of rank-and-file American troops when operating abroad. Partly as a result of the background racism that is embedded in many Americans' mental make-up and the propaganda of American imperialism that is drummed into recruits during military training, they do not see assaults on unarmed "rag heads" or "hajis" as murder.

The cult of silence on this subject began to slip only slightly in May 2007 when a report prepared by the Army's Mental Health Advisory Team was leaked to the San Diego Union-Tribune. Based on anonymous surveys and focus groups involving 1,320 soldiers and 447 Marines, the study revealed that only 56% of soldiers would report a unit member for injuring or killing an innocent noncombatant, while a mere 40% of Marines would do so. Some militarists will reply that such inhumanity to the defenseless is always inculcated into the properly trained soldier. If so, then the answer to this problem is to ensure that, in the future, there are many fewer imperialist wars of choice sponsored by the United States.

The Military-Industrial-Congressional Complex

Many other aspects of imperialism and militarism are undermining America's Constitutional system. By now, for example, the privatization of military and intelligence functions is totally out of control, beyond the law, and beyond any form of Congressional oversight. It is also incredibly lucrative for the owners and operators of so-called private military companies -- and the money to pay for their activities ultimately comes from taxpayers through government contracts. Any accounting of these funds, largely distributed to crony companies with insider connections, is chaotic at best. Jeremy Scahill, author of Blackwater: The Rise of the World's Most Powerful Mercenary Army, estimates that there are 126,000 private military contractors in Iraq, more than enough to keep the war going, even if most official U.S. troops were withdrawn. "From the beginning," Scahill writes, "these contractors have been a major hidden story of the war, almost uncovered in the mainstream media and absolutely central to maintaining the U.S. occupation of Iraq."

America's massive "military" budgets, still on the rise, are beginning to threaten the U.S. with bankruptcy, given that its trade and fiscal deficits already easily make it the world's largest net debtor nation. Spending on the military establishment -- sometimes mislabeled "defense spending" -- has soared to the highest levels since World War II, exceeding the budgets of the Korean and Vietnam War eras as well as President Ronald Reagan's weapons-buying binge in the 1980s. According to calculations by the National Priorities Project, a non-profit research organization that examines the local impact of federal spending policies, military spending today consumes 40% of every tax dollar.

Equally alarming, it is virtually impossible for a member of Congress or an ordinary citizen to obtain even a modest handle on the actual size of military spending or its impact on the structure and functioning of our economic system. Some $30 billion of the official Defense Department (DoD) appropriation in the current fiscal year is "black," meaning that it is allegedly going for highly classified projects. Even the open DoD budget receives only perfunctory scrutiny because members of Congress, seeking lucrative defense contracts for their districts, have mutually beneficial relationships with defense contractors and the Pentagon. President Dwight D. Eisenhower identified this phenomenon, in the draft version of his 1961 farewell address, as the "military-industrial-congressional complex." Forty-six years later, in a way even Eisenhower probably couldn't have imagined, the defense budget is beyond serious congressional oversight or control.

The DoD always tries to minimize the size of its budget by representing it as a declining percentage of the gross national product. What it never reveals is that total military spending is actually many times larger than the official appropriation for the Defense Department. For fiscal year 2006, Robert Higgs of the Independent Institute calculated national security outlays at almost a trillion dollars -- $934.9 billion to be exact -- broken down as follows (in billions of dollars):

Department of Defense: $499.4
Department of Energy (atomic weapons): $16.6
Department of State (foreign military aid): $25.3
Department of Veterans Affairs (treatment of wounded soldiers): $69.8
Department of Homeland Security (actual defense): $69.1
Department of Justice (1/3rd for the FBI): $1.9
Department of the Treasury (military retirements): $38.5
NASA (satellite launches): $7.6
Interest on war debts, 1916-present: $206.7


Totaled, the sum is larger than the combined sum spent by all other nations on military security.

This spending helps sustain the national economy and represents, essentially, a major jobs program. However, it is beginning to crowd out the civilian economy, causing stagnation in income levels. It also contributes to the hemorrhaging of manufacturing jobs to other countries. On May 1, 2007, the Center for Economic and Policy Research released a series of estimates on "the economic impact of the Iraq war and higher military spending." Its figures show, among other things, that, after an initial demand stimulus, the effect of a significant rise in military spending (as we've experienced in recent years) turns negative around the sixth year.

Sooner or later, higher military spending forces inflation and interest rates up, reducing demand in interest-sensitive sectors of the economy, notably in annual car and truck sales. Job losses follow. The non-military construction and manufacturing sectors experience the largest share of these losses. The report concludes, "Most economic models show that military spending diverts resources from productive uses, such as consumption and investment, and ultimately slows economic growth and reduces employment."

Imperial Liquidation?

Imperialism and militarism have thus begun to imperil both the financial and social well-being of our republic. What the country desperately needs is a popular movement to rebuild the Constitutional system and subject the government once again to the discipline of checks and balances. Neither the replacement of one political party by the other, nor protectionist economic policies aimed at rescuing what's left of our manufacturing economy will correct what has gone wrong. Both of these solutions fail to address the root cause of our national decline.

I believe that there is only one solution to the crisis we face. The American people must make the decision to dismantle both the empire that has been created in their name and the huge (still growing) military establishment that undergirds it. It is a task at least comparable to that undertaken by the British government when, after World War II, it liquidated the British Empire. By doing so, Britain avoided the fate of the Roman Republic -- becoming a domestic tyranny and losing its democracy, as would have been required if it had continued to try to dominate much of the world by force.

For the U.S., the decision to mount such a campaign of imperial liquidation may already come too late, given the vast and deeply entrenched interests of the military-industrial complex. To succeed, such an endeavor might virtually require a revolutionary mobilization of the American citizenry, one at least comparable to the civil rights movement of the 1960s.

Even to contemplate a drawing back from empire -- something so inconceivable to our pundits and newspaper editorial writers that it is simply never considered -- we must specify as clearly as possible precisely what the elected leaders and citizens of the United States would have to do. Two cardinal decisions would have to be made. First, in Iraq, we would have to initiate a firm timetable for withdrawing all our military forces and turning over the permanent military bases we have built to the Iraqis. Second, domestically, we would have to reverse federal budget priorities.

In the words of Noam Chomsky, a venerable critic of American imperialism: "Where spending is rising, as in military supplemental bills to conduct the wars in Iraq and Afghanistan, it would sharply decline. Where spending is steady or declining (health, education, job training, the promotion of energy conservation and renewable energy sources, veterans benefits, funding for the UN and UN peacekeeping operations, and so on), it would sharply increase. Bush's tax cuts for people with incomes over $200,000 a year would be immediately rescinded."

Such reforms would begin at once to reduce the malevolent influence of the military-industrial complex, but many other areas would require attention as well. As part of the process of de-garrisoning the planet and liquidating our empire, we would have to launch an orderly closing-up process for at least 700 of the 737 military bases we maintain (by official Pentagon count) in over 130 foreign countries on every continent except Antarctica. We should ultimately aim at closing all our imperialist enclaves, but in order to avoid isolationism and maintain a capacity to assist the United Nations in global peacekeeping operations, we should, for the time being, probably retain some 37 of them, mostly naval and air bases.

Equally important, we should rewrite all our Status of Forces Agreements -- those American-dictated "agreements" that exempt our troops based in foreign countries from local criminal laws, taxes, immigration controls, anti-pollution legislation, and anything else the American military can think of. It must be established as a matter of principle and law that American forces stationed outside the U.S. will deal with their host nations on a basis of equality, not of extraterritorial privilege.

The American approach to diplomatic relations with the rest of the world would also require a major overhaul. We would have to end our belligerent unilateralism toward other countries as well as our scofflaw behavior regarding international law. Our objective should be to strengthen the United Nations, including our respect for its majority, by working to end the Security Council veto system (and by stopping using our present right to veto).

The United States needs to cease being the world's largest supplier of arms and munitions -- a lethal trade whose management should be placed under UN supervision. We should encourage the UN to begin outlawing weapons like land mines, cluster bombs, and depleted-uranium ammunition that play particularly long-term havoc with civilian populations. As part of an attempt to right the diplomatic balance, we should take some obvious steps like recognizing Cuba and ending our blockade of that island and, in the Middle East, working to equalize aid to Israel and Palestine, while attempting to broker a real solution to that disastrous situation. Our goal should be a return to leading by example -- and by sound arguments -- rather than by continual resort to unilateral armed force and repeated foreign military interventions.

In terms of the organization of the executive branch, we need to rewrite the National Security Act of 1947, taking away from the CIA all functions that involve sabotage, torture, subversion, overseas election rigging, rendition, and other forms of clandestine activity. The president should be deprived of his power to order these types of operations except with the explicit advice and consent of the Senate. The CIA should basically devote itself to the collection and analysis of foreign intelligence. We should eliminate as much secrecy as possible so that neither the CIA, nor any other comparable organization ever again becomes the president's private army.

In order to halt our economic decline and lessen our dependence on our trading partners, the U.S. must cap its trade deficits through the perfectly legal use of tariffs in accordance with World Trade Organization rules, and it must begin to guide its domestic market in accordance with a national industrial policy, just as the leading economies of the world (particularly the Japanese and Chinese ones) do as a matter of routine. Even though it may involve trampling on the vested interests of American university economics departments, there is simply no excuse for a continued reliance on an outdated doctrine of "free trade."

Normally, a proposed list of reforms like this would simply be rejected as utopian. I understand this reaction. I do want to stress, however, that failure to undertake such reforms would mean condemning the United States to the fate that befell the Roman Republic and all other empires since then. That is why I gave my book Nemesis the subtitle "The Last Days of the American Republic."

When Ronald Reagan coined the phrase "evil empire," he was referring to the Soviet Union, and I basically agreed with him that the USSR needed to be contained and checkmated. But today it is the U.S. that is widely perceived as an evil empire and world forces are gathering to stop us.

The Bush administration insists that if we leave Iraq our enemies will "win" or -- even more improbably -- "follow us home." I believe that, if we leave Iraq and our other imperial enclaves, we can regain the moral high ground and disavow the need for a foreign policy based on preventive war. I also believe that unless we follow this path, we will lose our democracy and then it will not matter much what else we lose. In the immortal words of Pogo, "We have met the enemy and he is us."

Chalmers Johnson is the author of Nemesis: The Last Days of the American Republic (New York: Metropolitan Books, 2007). It is the final volume of his Blowback Trilogy.

Source:
http://www.tomdispatch.com/index.mhtml?pid=194902
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Tuesday, May 15, 2007

The End of National Currency


By Benn Steil
From Foreign Affairs
May/June 2007


Summary:

Global financial instability has sparked a surge in "monetary nationalism" -- the idea that countries must make and control their own currencies. But globalization and monetary nationalism are a dangerous combination, a cause of financial crises and geopolitical tension. The world needs to abandon unwanted currencies, replacing them with dollars, euros, and multinational currencies as yet unborn.

Benn Steil is Director of International Economics at the Council on Foreign Relations and a co-author of Financial Statecraft.

THE RISE OF MONETARY NATIONALISM

Capital flows have become globalization's Achilles' heel. Over the past 25 years, devastating currency crises have hit countries across Latin America and Asia, as well as countries just beyond the borders of western Europe -- most notably Russia and Turkey. Even such an impeccably credentialed pro-globalization economist as U.S. Federal Reserve Governor Frederic Mishkin has acknowledged that "opening up the financial system to foreign capital flows has led to some disastrous financial crises causing great pain, suffering, and even violence."

The economics profession has failed to offer anything resembling a coherent and compelling response to currency crises. International Monetary Fund (IMF) analysts have, over the past two decades, endorsed a wide variety of national exchange-rate and monetary policy regimes that have subsequently collapsed in failure. They have fingered numerous culprits, from loose fiscal policy and poor bank regulation to bad industrial policy and official corruption. The financial-crisis literature has yielded policy recommendations so exquisitely hedged and widely contradicted as to be practically useless.

Antiglobalization economists have turned the problem on its head by absolving governments (except the one in Washington) and instead blaming crises on markets and their institutional supporters, such as the IMF -- "dictatorships of international finance," in the words of the Nobel laureate Joseph Stiglitz. "Countries are effectively told that if they don't follow certain conditions, the capital markets or the IMF will refuse to lend them money," writes Stiglitz.

"They are basically forced to give up part of their sovereignty."

Is this right? Are markets failing, and will restoring lost sovereignty to governments put an end to financial instability? This is a dangerous misdiagnosis. In fact, capital flows became destabilizing only after countries began asserting "sovereignty" over money -- detaching it from gold or anything else considered real wealth. Moreover, even if the march of globalization is not inevitable, the world economy and the international financial system have evolved in such a way that there is no longer a viable model for economic development outside of them.

The right course is not to return to a mythical past of monetary sovereignty, with governments controlling local interest and exchange rates in blissful ignorance of the rest of the world. Governments must let go of the fatal notion that nationhood requires them to make and control the money used in their territory. National currencies and global markets simply do not mix; together they make a deadly brew of currency crises and geopolitical tension and create ready pretexts for damaging protectionism. In order to globalize safely, countries should abandon monetary nationalism and abolish unwanted currencies, the source of much of today's instability.

THE GOLDEN AGE

Capital flows were enormous, even by contemporary standards, during the last great period of "globalization," from the late nineteenth century to the outbreak of World War I.

Currency crises occurred during this period, but they were generally shallow and short-lived. That is because money was then -- as it has been throughout most of the world and most of human history -- gold, or at least a credible claim on gold. Funds flowed quickly back to crisis countries because of confidence that the gold link would be restored. At the time, monetary nationalism was considered a sign of backwardness, adherence to a universally acknowledged standard of value a mark of civilization. Those nations that adhered most reliably (such as Australia, Canada, and the United States) were rewarded with the lowest international borrowing rates. Those that adhered the least (such as Argentina, Brazil, and Chile) were punished with the highest.

This bond was fatally severed during the period between World War I and World War II.

Most economists in the 1930s and 1940s considered it obvious that capital flows would become destabilizing with the end of reliably fixed exchange rates. Friedrich Hayek noted in a 1937 lecture that under a credible gold-standard regime, "short-term capital movements will on the whole tend to relieve the strain set up by the original cause of a temporarily adverse balance of payments. If exchanges, however, are variable, the capital movements will tend to work in the same direction as the original cause and thereby to intensify it" -- as they do today.

The belief that globalization required hard money, something foreigners would willingly hold, was widespread. The French economist Charles Rist observed that "while the theorizers are trying to persuade the public and the various governments that a minimum quantity of gold ... would suffice to maintain monetary confidence, and that anyhow paper currency, even fiat currency, would amply meet all needs, the public in all countries is busily hoarding all the national currencies which are supposed to be convertible into gold." This view was hardly limited to free marketeers. As notable a critic of the gold standard and global capitalism as Karl Polanyi took it as obvious that monetary nationalism was incompatible with globalization. Focusing on the United Kingdom's interest in growing world trade in the nineteenth century, he argued that "nothing else but commodity money could serve this end for the obvious reason that token money, whether bank or fiat, cannot circulate on foreign soil." Yet what Polanyi considered nonsensical -- global trade in goods, services, and capital intermediated by intrinsically worthless national paper (or "fiat") monies -- is exactly how globalization is advancing, ever so fitfully, today.

The political mythology associating the creation and control of money with national sovereignty finds its economic counterpart in the metamorphosis of the famous theory of "optimum currency areas" (OCA). Fathered in 1961 by Robert Mundell, a Nobel Prize-winning economist who has long been a prolific advocate of shrinking the number of national currencies, it became over the subsequent decades a quasi-scientific foundation for monetary nationalism.

Mundell, like most macroeconomists of the early 1960s, had a now largely discredited postwar Keynesian mindset that put great faith in the ability of policymakers to fine-tune national demand in the face of what economists call "shocks" to supply and demand. His seminal article, "A Theory of Optimum Currency Areas," asks the question, "What is the appropriate domain of the currency area?" "It might seem at first that the question is purely academic," he observes, "since it hardly appears within the realm of political feasibility that national currencies would ever be abandoned in favor of any other arrangement."

Mundell goes on to argue for flexible exchange rates between regions of the world, each with its own multinational currency, rather than between nations. The economics profession, however, latched on to Mundell's analysis of the merits of flexible exchange rates in dealing with economic shocks affecting different "regions or countries" differently; they saw it as a rationale for treating existing nations as natural currency areas. Monetary nationalism thereby acquired a rational scientific mooring. And from then on, much of the mainstream economics profession came to see deviations from "one nation, one currency" as misguided, at least in the absence of prior political integration.

The link between money and nationhood having been established by economists (much in the way that Aristotle and Jesus were reconciled by medieval scholastics), governments adopted OCA theory as the primary intellectual defense of monetary nationalism. Brazilian central bankers have even defended the country's monetary independence by publicly appealing to OCA theory -- against Mundell himself, who spoke out on the economic damage that sky-high interest rates (the result of maintaining unstable national monies that no one wants to hold) impose on Latin American countries. Indeed, much of Latin America has already experienced "spontaneous dollarization": despite restrictions in many countries, U.S. dollars represent over 50 percent of bank deposits. (In Uruguay, the figure is 90 percent, reflecting the appeal of Uruguay's lack of currency restrictions and its famed bank secrecy.) This increasingly global phenomenon of people rejecting national monies as a store of wealth has no place in OCA theory.
NO TURNING BACK

Just a few decades ago, vital foreign investment in developing countries was driven by two main motivations: to extract raw materials for export and to gain access to local markets heavily protected against competition from imports. Attracting the first kind of investment was simple for countries endowed with the right natural resources. (Companies readily went into war zones to extract oil, for example.) Governments pulled in the second kind of investment by erecting tariff and other barriers to competition so as to compensate foreigners for an otherwise unappealing business climate. Foreign investors brought money and know-how in return for monopolies in the domestic market.

This cozy scenario was undermined by the advent of globalization. Trade liberalization has opened up most developing countries to imports (in return for export access to developed countries), and huge declines in the costs of communication and transport have revolutionized the economics of global production and distribution. Accordingly, the reasons for foreign companies to invest in developing countries have changed. The desire to extract commodities remains, but companies generally no longer need to invest for the sake of gaining access to domestic markets. It is generally not necessary today to produce in a country in order to sell in it (except in large economies such as Brazil and China).

At the same time, globalization has produced a compelling new reason to invest in developing countries: to take advantage of lower production costs by integrating local facilities into global chains of production and distribution. Now that markets are global rather than local, countries compete with others for investment, and the factors defining an attractive investment climate have changed dramatically. Countries can no longer attract investors by protecting them against competition; now, since protection increases the prices of goods that foreign investors need as production inputs, it actually reduces global competitiveness.

In a globalizing economy, monetary stability and access to sophisticated financial services are essential components of an attractive local investment climate. And in this regard, developing countries are especially poorly positioned.

Traditionally, governments in the developing world exercised strict control over interest rates, loan maturities, and even the beneficiaries of credit -- all of which required severing financial and monetary links with the rest of the world and tightly controlling international capital flows. As a result, such flows occurred mainly to settle trade imbalances or fund direct investments, and local financial systems remained weak and underdeveloped. But growth today depends more and more on investment decisions funded and funneled through the global financial system. (Borrowing in low-cost yen to finance investments in Europe while hedging against the yen's rise on a U.S. futures exchange is no longer exotic.) Thus, unrestricted and efficient access to this global system -- rather than the ability of governments to manipulate parochial monetary policies -- has become essential for future economic development.

But because foreigners are often unwilling to hold the currencies of developing countries, those countries' local financial systems end up being largely isolated from the global system. Their interest rates tend to be much higher than those in the international markets and their lending operations extremely short -- not longer than a few months in most cases. As a result, many developing countries are dependent on U.S. dollars for long-term credit. This is what makes capital flows, however necessary, dangerous: in a developing country, both locals and foreigners will sell off the local currency en masse at the earliest whiff of devaluation, since devaluation makes it more difficult for the country to pay its foreign debts -- hence the dangerous instability of today's international financial system.

Although OCA theory accounts for none of these problems, they are grave obstacles to development in the context of advancing globalization. Monetary nationalism in developing countries operates against the grain of the process -- and thus makes future financial problems even more likely.

MONEY IN CRISIS


Why has the problem of serial currency crises become so severe in recent decades? It is only since 1971, when President Richard Nixon formally untethered the dollar from gold, that monies flowing around the globe have ceased to be claims on anything real. All the world's currencies are now pure manifestations of sovereignty conjured by governments.

And the vast majority of such monies are unwanted: people are unwilling to hold them as wealth, something that will buy in the future at least what it did in the past.

Governments can force their citizens to hold national money by requiring its use in transactions with the state, but foreigners, who are not thus compelled, will choose not to do so. And in a world in which people will only willingly hold dollars (and a handful of other currencies) in lieu of gold money, the mythology tying money to sovereignty is a costly and sometimes dangerous one. Monetary nationalism is simply incompatible with globalization. It has always been, even if this has only become apparent since the 1970s, when all the world's governments rendered their currencies intrinsically worthless.

Yet, perversely as a matter of both monetary logic and history, the most notable economist critical of globalization, Stiglitz, has argued passionately for monetary nationalism as the remedy for the economic chaos caused by currency crises. When millions of people, locals and foreigners, are selling a national currency for fear of an impending default, the Stiglitz solution is for the issuing government to simply decouple from the world: drop interest rates, devalue, close off financial flows, and stiff the lenders. It is precisely this thinking, a throwback to the isolationism of the 1930s, that is at the root of the cycle of crisis that has infected modern globalization.

Argentina has become the poster child for monetary nationalists -- those who believe that every country should have its own paper currency and not waste resources hoarding gold or hard-currency reserves. Monetary nationalists advocate capital controls to avoid entanglement with foreign creditors. But they cannot stop there. As Hayek emphasized in his 1937 lecture, "exchange control designed to prevent effectively the outflow of capital would really have to involve a complete control of foreign trade," since capital movements are triggered by changes in the terms of credit on exports and imports.

Indeed, this is precisely the path that Argentina has followed since 2002, when the government abandoned its currency board, which tried to fix the peso to the dollar without the dollars necessary to do so. Since writing off $80 billion worth of its debts (75 percent in nominal terms), the Argentine government has been resorting to ever more intrusive means in order to prevent its citizens from protecting what remains of their savings and buying from or selling to foreigners. The country has gone straight back to the statist model of economic control that has failed Latin America repeatedly over generations. The government has steadily piled on more and more onerous capital and domestic price controls, export taxes, export bans, and limits on citizens' access to foreign currency. Annual inflation has nevertheless risen to about 20 percent, prompting the government to make ham-fisted efforts to manipulate the official price data. The economy has become ominously dependent on soybean production, which surged in the wake of price controls and export bans on cattle, taking the country back to the pre-globalization model of reliance on a single commodity export for hard-currency earnings.

Despite many years of robust postcrisis economic recovery, GDP is still, in constant U.S. dollars, 26 percent below its peak in 1998, and the country's long-term economic future looks as fragile as ever.

When currency crises hit, countries need dollars to pay off creditors. That is when their governments turn to the IMF, the most demonized institutional face of globalization. The IMF has been attacked by Stiglitz and others for violating "sovereign rights" in imposing conditions in return for loans. Yet the sort of compromises on policy autonomy that sovereign borrowers strike today with the IMF were in the past struck directly with foreign governments. And in the nineteenth century, these compromises cut far more deeply into national autonomy.

Historically, throughout the Balkans and Latin America, sovereign borrowers subjected themselves to considerable foreign control, at times enduring what were considered to be egregious blows to independence. Following its recognition as a state in 1832, Greece spent the rest of the century under varying degrees of foreign creditor control; on the heels of a default on its 1832 obligations, the country had its entire finances placed under French administration. In order to return to the international markets after 1878, the country had to precommit specific revenues from customs and state monopolies to debt repayment. An 1887 loan gave its creditors the power to create a company that would supervise the revenues committed to repayment. After a disastrous war with Turkey over Crete in 1897, Greece was obliged to accept a control commission, comprised entirely of representatives of the major powers, that had absolute power over the sources of revenue necessary to fund its war debt. Greece's experience was mirrored in Bulgaria, Serbia, the Ottoman Empire, Egypt, and, of course, Argentina.

There is, in short, no age of monetary sovereignty to return to. Countries have always borrowed, and when offered the choice between paying high interest rates to compensate for default risk (which was typical during the Renaissance) and paying lower interest rates in return for sacrificing some autonomy over their ability to default (which was typical in the nineteenth century), they have commonly chosen the latter. As for the notion that the IMF today possesses some extraordinary power over the exchange-rate policies of borrowing countries, this, too, is historically inaccurate. Adherence to the nineteenth-century gold standard, with the Bank of England at the helm of the system, severely restricted national monetary autonomy, yet governments voluntarily subjected themselves to it precisely because it meant cheaper capital and greater trade opportunities.

THE MIGHTY DOLLAR?


For a large, diversified economy like that of the United States, fluctuating exchange rates are the economic equivalent of a minor toothache. They require fillings from time to time -- in the form of corporate financial hedging and active global supply management -- but never any major surgery. There are two reasons for this. First, much of what Americans buy from abroad can, when import prices rise, quickly and cheaply be replaced by domestic production, and much of what they sell abroad can, when export prices fall, be diverted to the domestic market. Second, foreigners are happy to hold U.S. dollars as wealth.

This is not so for smaller and less advanced economies. They depend on imports for growth, and often for sheer survival, yet cannot pay for them without dollars. What can they do? Reclaim the sovereignty they have allegedly lost to the IMF and international markets by replacing the unwanted national currency with dollars (as Ecuador and El Salvador did half a decade ago) or euros (as Bosnia, Kosovo, and Montenegro did) and thereby end currency crises for good. Ecuador is the shining example of the benefits of dollarization: a country in constant political turmoil has been a bastion of economic stability, with steady, robust economic growth and the lowest inflation rate in Latin America. No wonder its new leftist president, Rafael Correa, was obliged to ditch his de-dollarization campaign in order to win over the electorate. Contrast Ecuador with the Dominican Republic, which suffered a devastating currency crisis in 2004 -- a needless crisis, as 85 percent of its trade is conducted with the United States (a figure comparable to the percentage of a typical U.S. state's trade with other U.S. states).

It is often argued that dollarization is only feasible for small countries. No doubt, smallness makes for a simpler transition. But even Brazil's economy is less than half the size of California's, and the U.S. Federal Reserve could accommodate the increased demand for dollars painlessly (and profitably) without in any way sacrificing its commitment to U.S. domestic price stability. An enlightened U.S. government would actually make it politically easier and less costly for more countries to adopt the dollar by rebating the seigniorage profits it earns when people hold more dollars. (To get dollars, dollarizing countries give the Federal Reserve interest-bearing assets, such as Treasury bonds, which the United States would otherwise have to pay interest on.) The International Monetary Stability Act of 2000 would have made such rebates official U.S. policy, but the legislation died in Congress, unsupported by a Clinton administration that feared it would look like a new foreign-aid program.

Polanyi was wrong when he claimed that because people would never accept foreign fiat money, fiat money could never support foreign trade. The dollar has emerged as just such a global money. This phenomenon was actually foreseen by the brilliant German philosopher and sociologist Georg Simmel in 1900.

He surmised:

"Expanding economic relations eventually produce in the enlarged, and finally international, circle the same features that originally characterized only closed groups; economic and legal conditions overcome the spatial separation more and more, and they come to operate just as reliably, precisely and predictably over a great distance as they did previously in local communities. To the extent that this happens, the pledge, that is the intrinsic value of the money, can be reduced. ... Even though we are still far from having a close and reliable relationship within or between nations, the trend is undoubtedly in that direction."

But the dollar's privileged status as today's global money is not heaven-bestowed. The dollar is ultimately just another money supported only by faith that others will willingly accept it in the future in return for the same sort of valuable things it bought in the past. This puts a great burden on the institutions of the U.S. government to validate that faith. And those institutions, unfortunately, are failing to shoulder that burden. Reckless U.S. fiscal policy is undermining the dollar's position even as the currency's role as a global money is expanding.

Four decades ago, the renowned French economist Jacques Rueff, writing just a few years before the collapse of the Bretton Woods dollar-based gold-exchange standard, argued that the system "attains such a degree of absurdity that no human brain having the power to reason can defend it." The precariousness of the dollar's position today is similar. The United States can run a chronic balance-of-payments deficit and never feel the effects.

Dollars sent abroad immediately come home in the form of loans, as dollars are of no use abroad. "If I had an agreement with my tailor that whatever money I pay him he returns to me the very same day as a loan," Rueff explained by way of analogy, "I would have no objection at all to ordering more suits from him."

With the U.S. current account deficit running at an enormous 6.6 percent of GDP (about $2 billion a day must be imported to sustain it), the United States is in the fortunate position of the suit buyer with a Chinese tailor who instantaneously returns his payments in the form of loans -- generally, in the U.S. case, as purchases of U.S. Treasury bonds. The current account deficit is partially fueled by the budget deficit (a dollar more of the latter yields about 20-50 cents more of the former), which will soar in the next decade in the absence of reforms to curtail federal "entitlement" spending on medical care and retirement benefits for a longer-living population. The United States -- and, indeed, its Chinese tailor -- must therefore be concerned with the sustainability of what Rueff called an "absurdity." In the absence of long-term fiscal prudence, the United States risks undermining the faith foreigners have placed in its management of the dollar -- that is, their belief that the U.S. government can continue to sustain low inflation without having to resort to growth-crushing interest-rate hikes as a means of ensuring continued high capital inflows.

PRIVATIZING MONEY

It is widely assumed that the natural alternative to the dollar as a global currency is the euro. Faith in the euro's endurance, however, is still fragile -- undermined by the same fiscal concerns that afflict the dollar but with the added angst stemming from concerns about the temptations faced by Italy and others to return to monetary nationalism. But there is another alternative, the world's most enduring form of money: gold.

It must be stressed that a well-managed fiat money system has considerable advantages over a commodity-based one, not least of which that it does not waste valuable resources. There is little to commend in digging up gold in South Africa just to bury it again in Fort Knox. The question is how long such a well-managed fiat system can endure in the United States. The historical record of national monies, going back over 2,500 years, is by and large awful.

At the turn of the twentieth century -- the height of the gold standard -- Simmel commented, "Although money with no intrinsic value would be the best means of exchange in an ideal social order, until that point is reached the most satisfactory form of money may be that which is bound to a material substance." Today, with money no longer bound to any material substance, it is worth asking whether the world even approximates the "ideal social order" that could sustain a fiat dollar as the foundation of the global financial system. There is no way effectively to insure against the unwinding of global imbalances should China, with over a trillion dollars of reserves, and other countries with dollar-rich central banks come to fear the unbearable lightness of their holdings.

So what about gold? A revived gold standard is out of the question. In the nineteenth century, governments spent less than ten percent of national income in a given year. Today, they routinely spend half or more, and so they would never subordinate spending to the stringent requirements of sustaining a commodity-based monetary system. But private gold banks already exist, allowing account holders to make international payments in the form of shares in actual gold bars. Although clearly a niche business at present, gold banking has grown dramatically in recent years, in tandem with the dollar's decline. A new gold-based international monetary system surely sounds far-fetched. But so, in 1900, did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support.

COMMON CURRENCIES

Virtually every major argument recently leveled against globalization has been leveled against markets generally (and, in turn, debunked) for hundreds of years. But the argument against capital flows in a world with 150 fluctuating national fiat monies is fundamentally different. It is highly compelling -- so much so that even globalization's staunchest supporters treat capital flows as an exception, a matter to be intellectually quarantined until effective crisis inoculations can be developed. But the notion that capital flows are inherently destabilizing is logically and historically false. The lessons of gold-based globalization in the nineteenth century simply must be relearned.

Just as the prodigious daily capital flows between New York and California, two of the world's 12 largest economies, are so uneventful that no one even notices them, capital flows between countries sharing a single currency, such as the dollar or the euro, attract not the slightest attention from even the most passionate antiglobalization activists.

Countries whose currencies remain unwanted by foreigners will continue to experiment with crisis-prevention policies, imposing capital controls and building up war chests of dollar reserves. Few will repeat Argentina's misguided efforts to fix a dollar exchange rate without the dollars to do so. If these policies keep the IMF bored for a few more years, they will be for the good.

But the world can do better. Since economic development outside the process of globalization is no longer possible, countries should abandon monetary nationalism. Governments should replace national currencies with the dollar or the euro or, in the case of Asia, collaborate to produce a new multinational currency over a comparably large and economically diversified area.

Europeans used to say that being a country required having a national airline, a stock exchange, and a currency. Today, no European country is any worse off without them. Even grumpy Italy has benefited enormously from the lower interest rates and permanent end to lira speculation that accompanied its adoption of the euro. A future pan-Asian currency, managed according to the same principle of targeting low and stable inflation, would represent the most promising way for China to fully liberalize its financial and capital markets without fear of damaging renminbi speculation (the Chinese economy is only the size of California's and Florida's combined). Most of the world's smaller and poorer countries would clearly be best off unilaterally adopting the dollar or the euro, which would enable their safe and rapid integration into global financial markets. Latin American countries should dollarize; eastern European countries and Turkey, euroize.

Broadly speaking, this prescription follows from relative trade flows, but there are exceptions; Argentina, for example, does more eurozone than U.S. trade, but Argentines think and save in dollars.

Of course, dollarizing countries must give up independent monetary policy as a tool of government macroeconomic management. But since the Holy Grail of monetary policy is to get interest rates down to the lowest level consistent with low and stable inflation, an argument against dollarization on this ground is, for most of the world, frivolous. How many Latin American countries can cut interest rates below those in the United States?

The average inflation-adjusted lending rate in Latin America is about 20 percent. One must therefore ask what possible boon to the national economy developing-country central banks can hope to achieve from the ability to guide nominal local rates up and down on a discretionary basis. It is like choosing a Hyundai with manual transmission over a Lexus with automatic: the former gives the driver more control but at the cost of inferior performance under any condition.

As for the United States, it needs to perpetuate the sound money policies of former Federal Reserve Chairs Paul Volcker and Alan Greenspan and return to long-term fiscal discipline. This is the only sure way to keep the United States' foreign tailors, with their massive and growing holdings of dollar debt, feeling wealthy and secure. It is the market that made the dollar into global money -- and what the market giveth, the market can taketh away. If the tailors balk and the dollar fails, the market may privatize money on its own.

Source:
http://www.foreignaffairs.org/20070501faessay86308-p0/benn-steil/the-end-of-national-currency.html
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Commentary:

Council on Foreign Relations on U.S. Dollar:
“An Absurdity… Supported Only by Faith”


The End of National Currency is the most astonishing thing that I have read since Zbigniew Brzezinski's appearance before the Senate Foreign Relations Committee earlier this year.

Foreign Affairs is the most important and influential journal of International Relations in the world. It is the mechanism by which the Council on Foreign Relations disseminates the game plan to people in polite circles. CFR's positions on core issues represent the raw building blocks for most of the gibberish spewed by the corporate media and the maniac fascist policies of the "developed world." Publications like the New York Times and the Wall Street Journal are dumbed down versions of Foreign Affairs that are published daily.

Television news is the same thing, but dumbed down again. Foreign Affairs is also where politicians from several countries look to determine what's safe to say, which policies are doable and what needs to be done. A degree in International Relations is largely a
certification of a student's ability to internalize CFR jargon and concepts.

Got the picture?

Now, what did the most important and influential journal of International Relations in the world just say about the U.S. Dollar and the global economy?

In summary:

The U.S. dollar is an "absurdity" and the only way to stave off a global disaster is for most countries to join one of three global currencies, based loosely on: the dollar, the euro and a pan Asian currency.

I encourage everyone to read The End of National Currency in its entirety, but I'll quote some of the more remarkable parts below:

The dollar's privileged status as today's global money is not heaven-bestowed. The dollar is ultimately just another money supported only by faith that others will willingly accept it in the future in return for the same sort of valuable things it bought in the past. This puts a great burden on the institutions of the U.S. government to validate that faith. And those institutions, unfortunately, are failing to shoulder that burden.

Reckless U.S. fiscal policy is undermining the dollar's position even as the currency's role as a global money is expanding.

Four decades ago, the renowned French economist Jacques Rueff, writing just a few years before the collapse of the Bretton Woods dollar-based gold-exchange standard, argued that the system "attains such a degree of absurdity that no human brain having the power to reason can defend it." The precariousness of the dollar's position today is similar. The United States can run a chronic balance-of-payments deficit and never feel the effects.

Dollars sent abroad immediately come home in the form of loans, as dollars are of no use abroad. "If I had an agreement with my tailor that whatever money I pay him he returns to me the very same day as a loan," Rueff explained by way of analogy, "I would have no objection at all to ordering more suits from him."

With the U.S. current account deficit running at an enormous 6.6 percent of GDP (about $2 billion a day must be imported to sustain it), the United States is in the fortunate position of the suit buyer with a Chinese tailor who instantaneously returns his payments in the form of loans — generally, in the U.S. case, as purchases of U.S. Treasury bonds.

The current account deficit is partially fueled by the budget deficit (a dollar more of the latter yields about 20-50 cents more of the former), which will soar in the next decade in the absence of reforms to curtail federal "entitlement" spending on medical care and retirement benefits for a longer-living population. The United States — and, indeed, its Chinese tailor — must therefore be concerned with the sustainability of what Rueff called an "absurdity." In the absence of long-term fiscal prudence, the United States risks undermining the faith foreigners have placed in its management of the dollar — that is, their belief that the U.S. government can continue to sustain low inflation without having to resort to growth-crushing interest-rate hikes as a means of ensuring continued high capital inflows.

At the turn of the twentieth century — the height of the gold standard — Simmel commented, "Although money with no intrinsic value would be the best means of exchange in an ideal social order, until that point is reached the most satisfactory form of money may be that which is bound to a material substance." Today, with money no longer bound to any material substance, it is worth asking whether the world even approximates the "ideal social order" that could sustain a fiat dollar as the foundation of the global financial system. There is no way effectively to insure against the unwinding of global imbalances should China, with over a trillion dollars of reserves, and other countries with dollar-rich central banks come to fear the unbearable lightness of their holdings.

Ordo ab chao (ORDER OUT OF CHAOS)

The CFR created this mess to begin with. Its fingerprints are on every policy, politician and corporation involved with the funneling of wealth up to the top of the pyramid.

Now what?

What do we do now, as we find ourselves gazing into oblivion, into the chaos that They created?

Seek order with fewer national currencies, my son. Trust us. We've gotten you this far.

We have almost reached the promised land of a global federal government, with a single currency, with no dissent, no war, no crime, no hunger and no disease and…

But before we can move to the single currency, we need to move to three:

A future pan-Asian currency, managed according to the same principle of targeting low and stable inflation, would represent the most promising way for China to fully liberalize its financial and capital markets without fear of damaging renminbi speculation (the Chinese economy is only the size of California's and Florida's combined). Most of the world's smaller and poorer countries would clearly be best off unilaterally adopting the dollar or the euro, which would enable their safe and rapid integration into global financial markets. Latin American countries should dollarize; eastern European countries and Turkey, euroize. Broadly speaking, this prescription follows from relative trade flows, but there are exceptions; Argentina, for example, does more eurozone than U.S. trade, but Argentines think and save in dollars.

But wait, there's one more thing:

Gold

This following paragraph is so weird, I had to read it several times. I still don't know what to make of it:

So what about gold?

A revived gold standard is out of the question. In the nineteenth century, governments spent less than ten percent of national income in a given year. Today, they routinely spend half or more, and so they would never subordinate spending to the stringent requirements of sustaining a commodity-based monetary system. But private gold banks already exist, allowing account holders to make international payments in the form of shares in actual gold bars. Although clearly a niche business at present, gold banking has grown dramatically in recent years, in tandem with the dollar's decline. A new gold-based international monetary system surely sounds far-fetched. But so, in 1900, did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support.

Woh. Hold on a second.

On the one hand, "A revived gold standard is out of the question," but on the other hand, "private gold banks already exist, allowing account holders to make international payments in the form of shares in actual gold bars. Although clearly a niche business at present, gold banking has grown dramatically in recent years, in tandem with the dollar's decline. A new gold-based international monetary system surely sounds far-fetched. But so, in 1900, did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support."

So, we're going to have a few "absurd" fiat currencies and private gold banks that will be used to make international payments in the form of shares of actual gold bars? Did the CFR just transmit a veiled and obscure tipoff to the wealthy people who read their rag?

Or is it something else…

I don't know what to make of it. That paragraph is such a non sequitur in the article that it practically slaps you right out of your chair as you read the thing. Steil points out that rape and plunder (Globalization) can't happen with currencies that are tied to things. So… Why mention private gold banks that can facilitate international payments?

It gets weirder. This article was published within days of the U.S. Government's shut down of eGold, the oldest private electronic gold bank. On the same day that the indictments came out against eGold, Brinks, a U.S. firm that provides bullion vaulting services, dropped BullionVault as a client. BullionVault allows individuals to easily and efficiently move their fiat currencies into physical gold, but it does not allow payments to other parties. [I am a satisfied client of BullionVault, by the way.]

Are factions of the Elite in open conflict? Do some of them want access to these gold services, while others, mainly U.S. dollar interested parties inside the U.S., view those same services as a threat? Is Steil warning governments to shut down these services, lest
individuals abandon their "absurd" fiat currencies?

I don't know what's going on here, but I'd really like to find out.

Source:
http://cryptogon.com/?p=706
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Thursday, May 10, 2007

Is Condi Hiding the Smoking Gun?


By FRANK RICH
May 6th, 2007


IF, as J.F.K. had it, victory has a hundred fathers and defeat is an orphan, the defeat in Iraq is the most pitiful orphan imaginable. Its parents have not only tossed it to the wolves but are also trying to pin its mutant DNA on any patsy they can find.

George Tenet is just the latest to join this blame game, which began more than three years ago when his fellow Presidential Medal of Freedom recipient Tommy Franks told Bob Woodward that Douglas Feith, the Pentagon’s intelligence bozo, was the “stupidest guy on the face of the earth” (that’s the expurgated version).

Last fall, Kenneth Adelman, the neocon cheerleader who foresaw a “cakewalk” in Iraq, told Vanity Fair that Mr. Tenet, General Franks and Paul Bremer were “three of the most incompetent people who’ve ever served in such key spots.” Richard Perle chimed in that the “huge mistakes” were “not made by neoconservatives” and instead took a shot at President Bush. Ahmad Chalabi, the neocons’ former darling, told Dexter Filkins of The Times “the real culprit in all this is Wolfowitz.”

And of course nearly everyone blames Rumsfeld.

This would be a Three Stooges routine were there only three stooges. The good news is that Mr. Tenet’s book rollout may be the last gasp of this farcical round robin of recrimination. Republicans and Democrats have at last found some common ground by condemning his effort to position himself as the war’s innocent scapegoat.

Some former C.I.A. colleagues are rougher still. Michael Scheuer, who ran the agency’s bin Laden unit, has accused Mr. Tenet of lacking “the moral courage to resign and speak out publicly to try to stop our country from striding into what he knew would be an abyss.” Even after Mr. Tenet did leave office, he maintained a Robert McNamara silence until he cashed in.

Satisfying though it is to watch a circular firing squad of the war’s enablers, unfinished business awaits. Unlike Vietnam, Iraq is not in the past: the war escalates even as all this finger-pointing continues. Very little has changed between the fourth anniversary of “Mission Accomplished” this year and the last. Back then, President Bush cheered an Iraqi “turning point” precipitated by “the emergence of a unity government.” Since then, what’s emerged is more Iraqi disunity and a major leap in the death toll. That’s why Americans voted in November to get out.

The only White House figure to take any responsibility for the fiasco is the former Bush-Cheney pollster Matthew Dowd, who in March expressed remorse for furthering a war he now deems a mistake. For his belated act of conscience, he was promptly patronized as an incipient basket case by an administration flack, who attributed Mr. Dowd’s defection to “personal turmoil.”

If that is what this vicious gang would do to a pollster, imagine what would befall Colin Powell if he spoke out. Nonetheless, Mr. Powell should summon the guts to do so. Until there is accountability for the major architects and perpetrators of the Iraq war, the quagmire will deepen. A tragedy of this scale demands a full accounting, not to mention a catharsis.

That accounting might well begin with Mr. Powell’s successor, Condoleezza Rice. Of all the top-tier policy players who were beside the president and vice president at the war’s creation, she is the highest still in power and still on the taxpayers’ payroll. She is also the only one who can still get a free pass from the press. The current groupthink Beltway narrative has it that the secretary of state’s recidivist foreign-policy realism and latent shuttle diplomacy have happily banished the Cheney-Rumsfeld cowboy arrogance that rode America into a ditch.

Thus Ms. Rice was dispatched to three Sunday shows last weekend to bat away Mr. Tenet’s book before “60 Minutes” broadcast its interview with him that night. But in each appearance her statements raised more questions than they answered. She was persistently at odds with the record, not just the record as spun by Mr. Tenet but also the public record. She must be held to a higher standard — a k a the truth — before she too jumps ship.

It’s now been nearly five years since Ms. Rice did her part to sell the Iraq war on a Sept. 8, 2002, Sunday show with her rendition of “we don’t want the smoking gun to be a mushroom cloud.” Yet there she was last Sunday on ABC, claiming that she never meant to imply then that Saddam was an imminent threat. “The question of imminence isn’t whether or not somebody is going to strike tomorrow” is how she put it.

In other words, she is still covering up the war’s origins. On CBS’s “Face the Nation,” she claimed that intelligence errors before the war were “worldwide” even though the International Atomic Energy Agency’s Mohamed ElBaradei publicly stated there was “no evidence” of an Iraqi nuclear program and even though Germany’s intelligence service sent strenuous prewar warnings that the C.I.A.’s principal informant on Saddam’s supposed biological weapons was a fraud.

Of the Sunday interviewers, it was George Stephanopoulos who went for the jugular by returning to that nonexistent uranium from Africa. He forced Ms. Rice to watch a clip of her appearance on his show in June 2003, when she claimed she did not know of any serious questions about the uranium evidence before the war.

Then he came as close as any Sunday host ever has to calling a guest a liar. “But that statement wasn’t true,” Mr. Stephanopoulos said. Ms. Rice pleaded memory loss, but the facts remain. She received a memo raising serious questions about the uranium in October 2002, three months before the president included the infamous 16 words on the subject in his State of the Union address. Her deputy, Stephen Hadley, received two memos as well as a phone call of warning from Mr. Tenet.

Apologists for Ms. Rice, particularly those in the press who are embarrassed by their own early cheerleading for the war, like to say that this is ancient history, just as they said of the C.I.A. leak case. We’re all supposed to move on and just worry about what happens next. Try telling that to families whose children went to Iraq to stop Saddam’s nukes. Besides, there’s a continuum between past deceptions and present ones, as the secretary of state seamlessly demonstrated last Sunday.

On ABC, she pushed the administration’s line portraying Iraq’s current violence as a Qaeda plot hatched by the Samarra bombing of February 2006. But that Qaeda isn’t the Qaeda of 9/11; it’s a largely Iraqi group fighting on one side of a civil war. And by February 2006, sectarian violence had already been gathering steam for 15 months — in part because Ms. Rice and company ignored the genuine imminence of that civil war just as they had ignored the alarms about bin Laden’s Qaeda in August 2001.

Ms. Rice’s latest canard wasn’t an improvisation; it was a scripted set-up for the president’s outrageous statement three days later. “The decision we face in Iraq,” Mr. Bush said Wednesday, “is not whether we ought to take sides in a civil war, it’s whether we stay in the fight against the same international terrorist network that attacked us on 9/11.”

Such statements about the present in Iraq are no less deceptive — and no less damaging to our national interest — than the lies about uranium and Qaeda- 9/11 connections told in 2002-3. This country needs facts, not fiction, to make its decisions about the endgame of the war, just as it needed (but didn’t get) facts when we went to war in the first place. To settle for less is to make the same tragic error twice.

That Ms. Rice feels scant responsibility for any of this was evident in her repeated assertions on Sunday that all the questions about prewar intelligence had been answered by the Robb-Silberman and Senate committee inquiries, neither of which even addressed how the administration used the intelligence it received. Now she risks being held in contempt of Congress by ducking a subpoena authorized by the House’s Oversight Committee, whose chairman, Henry Waxman, has been trying to get direct answers from her about the uranium hoax since 2003.

Ms. Rice is stonewalling his investigation by rambling on about separation of powers and claiming she answered all relevant questions in writing, to Senator Carl Levin, during her confirmation to the cabinet in January 2005. If former or incumbent national security advisers like Henry Kissinger, Brent Scowcroft and Zbigniew Brzezinski could testify before Congress without defiling the Constitution, so can she. As for her answers to Senator Levin’s questions, five of eight were pure Alberto Gonzales: she either didn’t recall or didn’t know.

No wonder the most galling part of Ms. Rice’s Sunday spin was her aside to Wolf Blitzer that she would get around to reflecting on these issues “when I have a chance to write my book.”

Another book! As long as American troops are dying in Iraq, the secretary of state has an obligation to answer questions about how they got there and why they stay. If accountability is ever to begin, it would be best if those questions are answered not on “60 Minutes” but under oath.

Originating Article NY Times

Source:
http://www.progressnowaction.org/page/community/post/michaelcollins/CqSx
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