Dec 162015
 

By James Petras, 99GetSmart

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What Makes Recep Run? The Making of a Modern Pasha

Erdoğan began his ascent to power as a social reformer in opposition to the power elite; he was a rabble-rouser for popular Islam and social welfare. Once he takes political power he enriches his family and the business elite and purges adversaries and rivals.

With political power and economic connections, he amasses personal wealth through illicit business transactions.

With political power and personal wealth, he seeks prestige and status among the Western elites by serving imperial interests: He shoots down a Russian military jet over Syrian territory and thereby threatens hundreds of Turkish businesses and loses a major source of personal enrichment. When the Russians threaten to cut off energy exports to Turkey, Erdoğan’s opponents suggest he heat his own palace and villas with cow dung this winter.

The Two Faces of Erdoğan

Turkish President Recep Tayyip Erdoğan has a long and ignoble history of betraying political associates, trading partners and military allies; of pledging friendship and then bombing his ‘friends’ and murdering citizens; of negotiating ‘in good faith’ and then killing rivals; of playing democrat then behaving like an ordinary demagogic dictator.

Erdoğan appeals to the plebeian and austere values of the Anatolian provincial petty bourgeoisie, while building the largest luxurious presidential palace in the world – fit for a 21st century Pasha. He repeatedly pronounces his fealty to the ‘Turkish Nation’, while he robs the Turkish treasury by repeatedly accepting bribes and pay-offs from building contractors who then double charge for publicly-funded projects.

More recently, Erdoğan claims to oppose terrorism and fight ISIS, while the major Turkish and regional newspapers, journalists and most domestic observers document the massive flow of illegal arms across the Turkish-Syrian border to ISIS terrorists.

Erdoğan’s ‘Carnal Relation’ with ISIS

Erdoğan supports ISIS by bombing the Syrian Kurdish fighters who resist the jihadi mercenaries; by shooting down a Russian military jet defending the Damascus government against the terrorists; by smuggling and selling oil which ISIS had stolen from Iraq and Syria; by providing medical assistance to wounded ISIS fighters; and by training and arming ISIS terrorists in Turkish bases.

There is a reciprocal relationship: Erdoğan uses ISIS operatives to terrorize his own domestic opposition, including terror bombing a gathering of Kurdish ‘socialist youth’ in the town of Suruç on July 20, 2015, which killed 33 and the massive bombing in Ankara on October 10 of a ‘peace and justice’ march, which killed over 100, targeting trade unionists, leaders of professional associations, community activists and members of a democratic Kurdish electoral party and wounded many hundreds.

During the legislative election of 2015 ISIS terrorists and thugs from Erdoğan’s Justice and Development Party (AKP) attacked the offices, meetings and candidates of the opposition parties, especially of the Kurdish People’s Democratic Party (HDP), to ensure that Erdoğan secured a super-majority.

In other words, Erdoğan has three uses for ISIS serving his external and internal interests:

(1)  To attack and destroy secular Kurdish forces resisting ISIS in Syria and Iraq, thus preventing the formation of an independent Kurdish state on the Turkish border.

(2)  To attack and destroy Syria’s independent Baathist government under Bashar  Al-Assad, dismantle the multicultural secular state apparatus and install a Sunni Islamist client in Damascus subordinate to Erdoğan’s AKP.

(3)  To attack and terrorize the Turkish domestic opposition, including the broad-based Kurdish HDP, and the leftist trade union confederation (DISK).

Erdoğan has a decade-long strategic alliance with the militant Wahhabi terrorists who now make up ISIS. He intends to ‘remake’ the map of the Middle East to serve his own expansionist ambitions. In part this explains why Erdoğan has provided large-scale arms and material to the terrorists, trained thousands of mercenaries and provided medical aid to wounded ISIS fighters. It also explains why Erdoğan took the unprecedented and extremely provocative step of shooting down a Russian military jet over Syrian territory, which had been bombing Erdoğan’s ISIS allies. Russian and Syrian Army successes against ISIS have threatened his ambitions.

Erdoğan’s transformation from ‘Muslim democrat’ to bloody authoritarian Islamist ruler with pretensions of becoming the dominant Middle Eastern Pasha has to be seen in light of his rise to power over the past 40 years.

What Makes Recep Run?

Erdoğan, early on, showed his affinity for extremist Islamist politics. In the 1970’s he was head of the youth branch of the Islamist Salvation Party (MSP), a virulent anti-communist, anti-secular party committed to converting Turkey, a huge multi-ethnic secular state, into a theocratic regime (along the lines of contemporary ISIS).

After the military coup of 1980 the MSP was dissolved and reappeared as the Welfare Party. Erdoğan became a leader of the new (re-named) Islamist party.

Erdoğan and the Welfare Party exploited Turkish mass discontent with the corrupt and authoritarian military. The Welfare Party embraced a populist social welfare program with Islamist religious undertones in order to build a formidable grassroots organization in the working class neighborhoods in Istanbul. Erdoğan was elected mayor of Turkey’s largest city in 1994.

As Mayor, Erdoğan over-reached his power by preaching militant Islamism and was convicted in 1998 of sedition against the secular state. He served 4 months of a 10-month sentence.

Henceforth he changed tactics: His Islamist fanaticism was disguised. He changed the party name from Welfare to the modern sounding Justice and Development Party (AKP). Erdoğan then launched a series of political maneuvers, in which he cleverly manipulated adversaries to gain power and then … stabbed each of them in the back.

Erdoğan: Embrace and Back-Stab 

Despite his earlier conviction for sedition against the secular state, the ‘reformed’ Erdoğan allied with the Kemalist, secular Republican Peoples Party (CHP) to overturn the military’s ban on his participation in politics in 2002. He was elected Prime Minister in 2003. After the AKP won the general election it cut its ties with the CHP. Erdoğan was re-elected Prime Minister in 2007 and 2011.

Erdoğan allied with the pro-US Islamist leader Fethullah Gülen’s Hizmetor Cemaat Movement, which was influential within the judicial system, police and army. Together they launched a purge against secular military and judicial officials, journalists and media critics.

The Erdoğan – Gülenist state apparatus arrested and jailed 300 secular military officers, judges and journalists and replaced them with Erdođan and Gülen loyalists – all Islamists.

Dubbed “Operation Sledgehammer” the entire purge was based on fabricated charges of treason and conspiracy. Yet it was described by the Western media in terms that flattered Erdoğan’s democratic credentials, calling it an ‘effort to consolidate democracy’ against the military.

It had nothing to do with democracy: The purge consolidated Erdoğan’s personal power and allowed him to pursue policies that were more overtly neoliberal and Islamist. The purge of the judiciary further allowed Erdoğan to enrich crony capitalists and family members.

Erdoğan: The Birth of a Neoliberal Pasha

Erdoğan then embraced an IMF-designed ‘stabilization and recovery’ program, which reduced wages, salaries and pensions while privatizing public sector enterprises and activities. This attracted a large inflow of capital as foreign investors and cronies snapped up the goodies at bargain prices. Most emblematic of this ‘free-for-all cronies’ approach to the economy was the Soma coal mine disaster in May 2014 when over 300 miners were killed in a previously state-owned mine, which had suffered a breakdown of worker safety conditions after it had been privatized to an Erdoğan-crony. Despite local and international outrage, Recep ignored the scandal and unleashed police on the demonstrating miners.

Erdoğan’s combination of Islam with brutal neoliberalism attracted support from Brussels, Wall Street and the City of London. Large inflows of speculative foreign capital temporarily inflated Turkey’s GNP and Erdoğan’s wealth and ego!

In the beginning of his rule Erdoğan’s concessions, tax incentives, government contracts to big capital were broadly distributed to most sectors, but especially to his crony capitalists within the construction and real estate sectors.

As the capitalist boom continued and his power increased, Erdoğan became more obsessed with his role as the savior of Turkey. By 2010, a serious difference developed between Erdoğan and his Gülenist partners over the division of power. Erdoğan moved rapidly and brutally. He launched another massive purge of suspected ‘Gülenist officials’. He arrested, fired, jailed and relocated Gülen sympathizers among judges, police and civil servants despite the fact that these were officials who had served him well during the earlier purge of the secular military.

Erdoğan is not willing to share power with any other party, movement or group. Pasha Recep wanted to monopolize power. He has attacked critical newspapers, businesses and conglomerates claiming these were ‘Gülen controlled’. Erdoğan ensured that only capitalists completely loyal to him would receive regime patronage. In other words, he strengthened the size, strength and importance of crony capitalists: especially in the real estate and construction sector.

Pasha Recep’s Assault on Civil Society

Turkey, under Erdoğan’s absolute power, has seen a geometric increase in corruption and mindless ‘development projects’, leading to the degradation and usurpation of public spaces. His arbitrary and destructive policies have provoked sustained civil society protests, especially in the center of Istanbul – during the Gezi Park demonstrations, which began in May 2013.

In response to civil society demonstrations, Erdoğan shed all pretensions, ripping off his ‘modern democratic’ mask and brutally repressing the peaceful protestors in the heart of Istanbul– resulting in 22 deaths, hundreds wounded and more arrested and sentenced to long jail term. Erdoğan subsequently targeted liberal critics and business leaders, who had criticized his brutal use of force.

2013, the year of the Gezi Park Movement, was a turning point – Erdoğan and family members were implicated in a $100 million-dollar corruption scandal while liberal critics of the regime were purged.

Facing opposition from sectors of the elite as well as popular classes, Erdoğan became more rabidly ‘Islamist’, chauvinistic and megalomaniacal – ‘Neo-Ottoman’.

In short order, he re-launched his attack on the Turkish Kurds and increased his support to the Islamist terrorists in Syria, including what would become ISIS. These policies were designed to complement his ongoing war against the secular Kurds in Iraq and Syria.

Erdoğan: Backstabbing Secular Syria and “Best Friend” Russia

From the beginning of his rule, Erdoğan cultivated the ‘best of relations’ with Syria’s Bashar Al-Assad and Russian President Vladimir Putin. He signed dozens of trade agreements with Damascus and Moscow. Putin was welcomed to Ankara and Erdoğan to Moscow where they signed billion-dollar energy deals and mutual co-operative agreements.

Up to 3 million Russian tourists visited Turkish resorts each year, a bonanza for one of Turkey’s major industries.

Erdoğan’s regime was ebullient, effusive, embracing Moscow and Damascus while systematically preparing the ground for more backstabbing!

By 2011, Erdoğan had been deeply involved in preparing the ground for what would become the bloody Islamist uprising in Syria. Early on, hundreds of armed foreign Islamist terrorists crossed the Turkish border into Syria. Their presence overwhelmed local Syrian dissidents. Armed Islamists seized villages and towns brutally purging them of Christians, Kurds, Alewives and secular Syrians. They took over the oil fields. From one day to the next, Erdoğan was transformed from loving friend to deadly foe of neighboring Syria demanding ‘regime change’ through terrorist sectarian violence.

Erdoğan embraced the most extreme, sectarian Wahhabi Islamist groups because they were committed to undermining the nationalist aspirations of the Syrian Kurds as well as overthrowing the secular Al-Assad government. Erdoğan’s covert alliance with ISIS and other Islamist terrorist groups was motivated by several strategic considerations, which are outlined below:

1)      The alliance serves to prevent the establishment of an autonomous Kurdish enclave on the Syrian-Turkish border in the event of a Damascus defeat, which Erdoğan fears would then link armed Syrian Kurds with the huge disaffected Kurdish population in southeastern Turkey and lead to the formation of an autonomous secular Kurdish state.

2)     Erdoğan’s alliance with jihadis in Syria has served Ankara’s ambition to impose a puppet Sunni-Islamist regime in Damascus.

3)     The ISIS regime controlling the Syrian and Iraqi oil fields provides Turkey with a source of cheap fuel and lucrative profits for the regime. Recep’s son, Necmettin Bilal Erdoğan owns and operates the BMZ Group which buys the contraband Syrian and Iraqi oil in Turkey and sells it overseas (especially to Israel) earning nearly a billion dollars a year for ‘the family’.

It is not surprise that the Erdoğan family directly financed ISIS, which uses the cash from contraband oil, pillaged antiquities and ‘tribute’ taxes, to purchase heavy and light arms, military and transport vehicles and communications equipment in Turkey and elsewhere to support its terror campaign in Syria and Iraq. Well-informed Turkish observers believe that Erdoğan’s intelligence officials are directly involved in recruiting ISIS terrorists to operate within Turkey and attack Erdoğan’s internal opposition, especially the Kurdish electoral party HDP and the broad-based Turkish left and trade union movements. Observers claim Turkish intelligence operations had a direct role in the ‘ISIS’ bomb attacks in Suruç and Ankara this year, which killed and maimed hundreds of Erdoğan opponents and civil society activists.

Erdoğan and ISIS developed a co-dependent relation, one of mutual manipulation. Each has publicly declared their tactical enmity to the other, while busily pursuing joint strategic aims.

Ankara uses the pretext of fighting ISIS in order to bomb the Kurds in Syria who are resisting the jihadis. ISIS uses the pretext of opposing the NATO member Turkey in order to cover its massive oil and weapons trade deals with Erdoğan’s family and crony business enterprises.

The Pasha Stabs the Bear and the Bear Bites Back – One Stab Too Many 

Russia’s highly effective aerial bombing campaign against the jihadi and ISIS terrorist networks in Syria was in response to a formal request for military intervention by the legitimate government of President Bashar Al-Assad. Russia has long-standing ties to the Baathist regime in Damascus. The intervention has threatened to undermine Erdoğan’s regional power ambitions and illicit business operations in Syria. First and foremost, it ended Erdoğan’s plan to annex a large swathe of Northern Syria and call it a ‘no fly zone’. The Turkish-controlled ‘no fly zone’ in Syria would  expand Turkish military training bases for ISIS and other jihadi terrorists and secure the transport routes for ISIS oil shipments smuggled out of Iraq and Syria.

Unlike the US, which had rarely bombed the strategic Erdoğan-ISIS oil smuggling operations, the Russians destroyed over a thousand oil trucks and numerous ISIS oil depots and logistical centers in the first month of its air campaign. By reducing the flow of smuggled oil, Russia cut off the main source of massive profit for Bilal Erdoğan’s BMZ Company as well as for Turkish arms dealers.

Like gangsters, Erdoğan, his family and cronies have been immersed in massive corrupt business activities at home and abroad; he can no longer operate within the context of the larger interests of the Turkish capitalist class with its $40 billion dollar annual trade and investment relations with Russia. Erdoğan’s decision to shoot down a Russian jet in Syrian territory, on November 24, 2015, was largely motivated by his fury at Russia’s successful interruption of the ISIS  oil convoys. By protecting his own family interests, Erdoğan stabbed more allies in the back: The Russians, as well as large sections of the Turkish capitalist class!

Up until Erdoğan’s act of war against Russia, he had publicly embraced Putin as an ally, friend and partner. The two leaders had cordial relations for over a decade. The Turkish military was fully informed about Russian military operations in Syria, including its flight paths. Then suddenly in November 2015 he risked a total rupture in relations and invited retaliation against Turkey from Russia by shooting down a Russian jet.

Russia immediately responded by upgrading its most advanced weapons systems to defend its operations and bases in Northern Syria and intensified its bombing of the ISIS – Turkish oil operations.

Russia retaliated by imposing visa restrictions and economic sanctions on Turkey, adversely affecting the multi-billion dollar tourist business. Strategic energy deals were terminated. Large-scale Turkish construction contracts were ended. Turkish agricultural exports to Russian markets virtually stopped.

The Pasha Bites His own Tail

Erdoğan’s unilateral actions were clearly against the broad interests of Turkey’s large export sector. From Gezi to Gülen, from one purge to another, Erdoğan, the former ‘poster boy’ of neoliberal Turkish capital, has become a self-centered despot, acting on behalf of a narrowing circle of corrupt family and crony capitalists. Erdoğan set himself up as a modern day pasha more in the image of the self-indulgent Ibrahim I (the Madman) than the far-seeing Suleyman I (the Wise).

Once Erdoğan realized the damage that his fit of egomaniac fury against the Russians had provoked abroad and his growing isolation within Turkey, he rushed to NATO on bended knee to beg for support. True to his authoritarian personality, Recep Erdoğan crawls on his knees before his ‘superiors’ (NATO-US) while grabbing the throats of his ‘inferiors’ (the Turkish people)!

Conclusion

Erdoğan’s road to absolutist power is strewn with indiscriminate purges, terror and deceit; violence against environmental and liberal protestors in Gezi Park and moderate Gülen Islamists; jail sentences and firing of journalists and publishers, military officials and judges; repression of workers and capitalists; terror bombing against activists and democrats; and war against Kurds and Syrians.

Erdoğan’s paranoid and greed-driven vision of politics precludes any trust and stable relations. He thinks he is very clever with his combination of charm and broken promises, but he fools nobody. He reignites the war against the Kurds in Turkey and Syria but they retaliate!

He attacks Russia and provokes a very costly retaliation so far limited to the Turkish economy.

He increases his personal power, but undermines the interests of the Turkish nation and its people. Erdoğan believes he is the rising regional hegemony, indispensable to the West. He blackmails the EU for billions of Euros to control the flood of refugees fleeing violence in Syria and Iraq with his promises to warehouse desperate refugees in Turkish concentration camps. But Europeans must know that their money can never buy trust and loyalty from the Pasha.

His oil deals with ISIS are in tatters. Russian bombs ensure that Erdoğan will have to find other sources of illicit profit. Worst of all, Erdoğan’s furious actions have lost markets, allies and domestic support. He faces enemies from all sides – liberal professors, students, big business owners and organized workers in Istanbul; small business people in the tourist trade; construction and oil companies in Ankara; farmers in Anatolia, and, above all, the coal miners in Soma Manis.

Who knows under what circumstances Pasha Recep (the ‘Megalomaniac’) will be replaced?

Feb 262014
 

Posted by SnakeArbusto and greydogg, 99GetSmart

Written by Turkish political analyst / blogger, Gürkan Özturan:

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Prime Minister Erdoğan, in his weekly address to his group in Parliament, defended the bills expanding censorship and surveillance by referring to the recently released tapes of phone conversations that revealed corruption at extreme levels. The scandalous phone conversation between the Prime Minister and his son can be accessed here (http://erdogansdollars.blogspot.com.tr/).

Minutes after the phone conversation was uploaded on YouTube, people started downloading the video, and if they were unable to do that they started recording the voice on their phones. Only a few hours later, the original video was censored and in the morning it was not possible to browse to the exact URL of the tape.

The people who downloaded the video from YouTube, started uploading from different usernames and to other platforms as well. While the government was busy trying to accomplish Mission Impossible and censor the leaked phone conversation, people have found a new way of getting around censorship. Throughout the day, people have reported from all over the city that their cab driver put on an audio CD of the phone conversation when they took a cab, that some old gentleman on the bus shouted out “this is my debt to fellow citizens!” and turned on loudspeakers to broadcast the downloaded video, or that a lady on the ferry asked for the attention of all citizens who cared about the taxes they pay for the state’s services and used her phone’s loudspeakers to let everyone listen.

Before 24 hours had passed after the video was uploaded, 2.5 million people had viewed the original video and millions of others saw duplicates. And after work shifts at 7 p.m., at least 10 cities had mass protests calling for Erdoğan to resign. Police attacked with all the hatred they had towards peaceful protests, yet more and more people joined in. The Police may be the protector of the government, yet the people are furious to see one man calling his son to “melt the wealth” to avoid arrest, while citizens at home turn heaters down a bit more so they don’t spend everything they earn to pay the gas bill. Once this information is out there, there is absolutely no way of going back, as the people will find a way to spread this information.

When censorship aims for blanket coverage of information, other ways of spreading it emerge. People have reverted to Samizdat-style information sharing via Bluetooth on public transport, e-mail attachments, cassettes, and CDs. Censorship is a lost cause to begin with and in the end only helps the content reach more people.

More stories by Gürkan Özturan @ http://theradicaldemocrat.wordpress.com

More stories about Turkey @ http://99getsmart.com/category/turkey/

Jan 072013
 

Posted by greydogg, 99GetSmart

The Greek Crisis : The Real Causes and possible solutions which are hidden from the public is a documentary that was produced in Greece at the end of 2011 and the subsequent resignation of Prime Minister George Papandreou.

VIDEO @ http://www.youtube.com/watch?v=HZc6oD0WfW8&feature=share

Sep 192012
 

Posted by greydogg, 99GetSmart

* US TOTALITARIAN STATE WINS AFTER ALL: OBAMA REINSTATES NDAA MILITARY DETENTION PROVISION

By Tyler Durden, zerohedge

Just over a week ago, we wrote of the challenge to Obama’s NDAA totalitarian bill. Hope remained that Chris Hedges’ view of the indefinite detention as “unforgivable, unconstitutional, and exceedingly dangerous” would bolster judgment. However, as Russia Today reports, a lone appeals judge bowed down to the Obama administration late Monday and reauthorized the White House’s ability to indefinitely detain American citizens without charge or due process. On Monday, the US Justice Department asked for an emergency stay on the previous Chris Hedges’-driven order, and hours later US Court of Appeals for the Second Circuit Judge Raymond Lohier agreed to intervene and place a hold on the injunction. The stay will remain in effect until at least September 28, when a three-judge appeals court panel is expected to begin addressing the issue. It would appear the total fascist takeover of Amerika is drawing nearer by the day.

Some background:

What is ironic, is that in the ongoing absolute farce that is the theatrical presidential debate, there hasn’t been one word uttered discussing precisely the kind of creeping totalitarian control, and Orwellian loss of constitutional rights, that the biparty-supported NDAA would have demanded out of the US republic. Why? Chris Hedges said it best:

The oddest part of this legislation is that the FBI, the CIA, the director of national intelligence, the Pentagon and the attorney general didn’t support it. FBI Director Robert Mueller said he feared the bill would actually impede the bureau’s ability to investigate terrorism because it would be harder to win cooperation from suspects held by the military. “The possibility looms that we will lose opportunities to obtain cooperation from the persons in the past that we’ve been fairly successful in gaining,” he told Congress.

But it passed anyway. And I suspect it passed because the corporations, seeing the unrest in the streets, knowing that things are about to get much worse, worrying that the Occupy movement will expand, do not trust the police to protect them. They want to be able to call in the Army. And now they can.

[…]

Fear is the psychological weapon of choice for totalitarian systems of power. Make the people afraid. Get them to surrender their rights in the name of national security. And then finish off the few who aren’t afraid enough. If this law is not revoked we will be no different from any sordid military dictatorship. Its implementation will be a huge leap forward for the corporate oligarchs who plan to continue to plunder the nation and use state and military security to cow the population into submission.

READ @ http://www.zerohedge.com/news/us-totalitarian-state-wins-after-all-obama-reinstates-ndaa-military-detention-provision

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* MICHAEL HUDSON ON HOW FINANCE CAPITAL LEADS TO DEBT SERVITUDE

By Yves Smith, NakedCaptialism

This edited transcript is expanded from a live phone interview with Michael Hudson by Dimitris Yannopoulos for Athens News. It summarizes some of the major themes from Hudson’s new book, The Bubble and Beyond: Fictitious Capital, Debt Deflation and Global Crisis, which is available on Amazon.

[…] Q: Hasn’t this system collapsed since 2008?

A: Just the opposite. The 2008 aftermath was used by Wall Street as an opportunity to panic Congress into taking the losses of big banks onto the public balance sheet, incurring $13 trillion of added debt. In effect the Obama administration told the real economy to drop dead. The crisis became an opportunity to turn democracy into an oligarchy. The same thing happened in Ireland. After its banks made enormous insider loans, reckless loans and fraudulent loans, the government pledged to make the gamblers whole. The non-financial economy must now pay the bad bank debts, because the European Central Bank (ECB) now rules the eurozone economies.

Q: Isn’t the ECB taking over the function of bailing out EU governments, having done so with eurozone banks?

A: The ECB is not bailing out the existing status quo as much as acting to change it. The aim is aggressive, not passive. It is to replace democratically elected governments in Greece and Italy (and ultimately, everywhere) with oligarchy. German Chancellor Merkel and other neoliberals claim that democracy would put the interest of people first. And there’s not enough to maintain their living standards and sustain a growth in wealth at the top at existing rates. So something has to give – and it is living standards, not the debt overhead. This is the social revolution in which Europe and the entire Western world is in today.

The ECB puts commercial banks first. That’s what central banks do. That’s why the Federal Reserve Bank was made independent from the U.S. Treasury in 1913. They are there to promote bank interests, increasingly at odds with the rest of the economy. The first ploy is to place technocrats (a scientific sounding euphemism for bank lobbyists) in place of elected governments in Greece and Italy.

The anti-democratic transformation occurring in Europe today resembles what occurred in Rome in 133 BC to inaugurate a century of financial war, which historians called a Social War. It was waged by the creditor oligarchy (which had enriched itself largely by privatizing public land after the Punic Wars with Carthage, much as today’s financial oligarchy has grown rich by privatization and corrupt public-private financial “cooperation”). At issue was whether the economy should be run to enforce creditor “rights” by depriving the population of its liberty from debt servitude, or should help the citizenry prosper. […]

READ @ http://www.nakedcapitalism.com/2012/09/michael-hudson-on-how-finance-capital-leads-to-debt-servitude.html

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* A RARE LOOK AT WHY THE GOVERNMENT WON’T FIGHT WALL STREET

By Matt Taibbi, Rolling Stone

[…] What’s fascinating about Connaughton’s book is that we now get to hear a behind-the-scenes account of who exactly was knocking down simple reform ideas, how they were knocked down, and in some cases we even find out why good ideas were rejected, although some element of mystery certainly remains here.

There are some damning revelations in this book, and overall it’s not a flattering portrait of key Obama administration officials like SEC enforcement chief Robert Khuzami, Department of Justice honchos Eric Holder (who once worked at the same law firm, Covington and Burling, as Connaughton) and Lanny Breuer, and Treasury Secretary Tim Geithner.

Most damningly, Connaughton writes about something he calls “The Blob,” a kind of catchall term describing an oozy pile of Hill insiders who are all incestuously interconnected, sometimes by financial or political ties, sometimes by marriage, sometimes by all three. And what Connaughton and Kaufman found is that taking on Wall Street even with the aim of imposing simple, logical fixes often inspired immediate hostile responses from The Blob; you’d never know where it was coming from.

In one amazing example described in the book, Kaufman decided he wanted to try to re-instate the so-called “uptick rule,” which had existed for seventy years before being rescinded by the SEC in 2007. The rule prevents investors from shorting a stock until the stock had ticked up in price. “Forcing short sellers to wait for the price to tick up before they sell more shares gives a breather to a stock in decline and helps prevent bear raids,” Connaughton writes. […]

READ @ http://www.rollingstone.com/politics/blogs/taibblog/a-rare-look-at-why-the-government-wont-fight-wall-street-20120918#ixzz26q2neYU7

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* FASCISTS ARE THE TOOLS OF THE STATE

By Peter Gelderloos, eagainst

1. Fascism is widespread in many industrial and postcolonial countries, existing as extreme nationalism, neo-Nazism, or some other extreme authoritarianism. In nearly all cases, the rank-and-file of the fascist movements tend to be dispossessed members of a privileged group in society (e.g. poor whites). In pre-WWII Germany, most working-class Germans were impoverished by the Depression, in contrast to their self-image as a wealthy, powerful nation. In modern Germany, neo-Nazi political parties win the most votes, often more than 10% of the total, in states where unemployment is highest. In the US, poor southern whites who do not enjoy the wealth promised to white people of the richest nation on earth often join the Ku Klux Klan. In Rwanda the Hutus, impoverished and in great need of land, expressed their desire for more wealth and power by identifying with the majority ethnicity, joining the fascist Hutu parties responsible for the genocide. There has been a similar fascist movement among Hindus in India, asserting their power as the majority ethnicity. Thus, fascism can be seen as a response to disempowerment and broken promises of privilege.

Fascism can also be seen as an elite phenomenon, a gentleman’s movement. The German Nazi party included many of the richest industrialists, the Spanish fascists behind Franco were an alliance of generals, landowning aristocracy, and church leaders, while Mussolini said fascism should better be called “corporatism” because it is the blending of state and corporate power. In the US, the KKK was originally a gentleman’s club, and before WWII, the richest industrialists (Hearst, Rockefeller, Ford, DuPont, Morgan) supported the fascists in Europe. Currently in the US, many elite conservatives support the anti-immigrant group Minutemen and other crypto-fascist groups. Fascism is especially connected to conservative segments of the elite who are afraid the expansive strategies of the progressive elite will backfire and destabilize the whole system. In these manifestations, fascism is a way the elite preserve traditional morality, strengthen social hierarchy, and defend against revolutionary activity among the lower classes.

The basic ideas common to fascism (a: anti-immigration, b: racial purity, c: white supremacy, d: political empowerment through nationalism, e: the social Darwinist ideas of “survival of the fittest,” f: anti-Semitism) are all empty and incorrect. […]

READ @ http://eagainst.com/articles/peter-gelderloos-fascists-are-the-tools-of-the-state/