Italy’s Election: Lighting the Lamp

Italy’s Election: Lighting The Lamp

Dispatches From The Edge

Feb. 28, 2013

 

 

On the eve of the World War I the British diplomat Sir Edward Gray is purported to have said, “The lamps are going out all over Europe.” In the wake of the recent Italian election one might reverse that phrase: after years of brutal austerity, collapsing economies, widespread unemployment and shredding of the social welfare net, Italians said “basta!” “Enough!”

 

And lamps are going on all over Europe.

 

Slovenians just turned out their conservative government and handed the reins to Alenta Bratusek, who compared austerity to “medieval medicine.” Tens of thousands of Bulgarian demonstrators forced their austerity-addicted government to resign. Support for the ruling parties of Spain and Portugal, which have overseen higher taxes and massive cutbacks, has dropped precipitously.  German Chancellor Angela Merkel’s conservative Democratic Union took a beating in local elections. France’s Socialist Party rode an anti-austerity program to victory, and the leftist Syriza Party in Greece is now the most popular in that country.

 

Nowhere in Europe, however, has the austerity policies of the “troika”—the European Union (EU), the European Central Bank, and the International Monetary Fund (IMF)—taken such a thorough shellacking as in Italy. Prime Minister Mario Monte’s government of technocrats, who piled on regressive taxes, cut pensions, slashed jobs, and dismantled social programs, was crushed, while parties running on anti-austerity platforms swept the field.

 

It was an odd grouping that ran the table in Italy. The biggest vote getter was the center-left Democratic Party (29.5 %), followed by former Prime Minister’s Silvio Burlusconi’s right-wing People of Freedom Party (29.1%).  The quirky Five Star Movement, led by comedian Beppo Grillo, which ran on a five-point platform that included a jobs program and a halt to pension cuts, came in third (25.5 %). Fourth place went to the Monti’s Civic Choice (10.5%).

 

In spite of the political differences among the three top voter getters, all ran on anti-austerity programs of one variety or other. So while there is little common ground between Burlusconi, Democratic Party leader and former Communist Pier Luigi Bersani—most likely the next prime minister—and self-described “wildman” Grillo, all agreed that two years of austerity had done nothing but impoverish Italians and throttle whatever life remained in its fragile economy.

 

In Europe’s corridors of power, however, the judgment by the overwhelming majority of Italians that austerity had been tried and found wanting was greeted by an avalanche of outrage, ranging from characterizations of Italy—the third largest economy in the eurozone—as a country of “clowns” and “children” to a few outright threats should any other countries dare follow in their wake:

 

*“More than half of Italians voted for some form of populism,” complained the German newspaper Die Welt. “This amounts to an almost childlike refusal to acknowledge reality.”

 

• German Finance Minister Wolfgang Schauble warned “the onus is now on political leaders in Italy to…do what the country needs, namely form a stable government that continues on the successful path of reform.” Germany’s former finance minister, Peer Steinbruck, remarked that he was “horrified that two clowns won the election,” referring to Brillo and Berlusconi.
• “We should be serious when we discuss economic policy and not give in to immediate political or party considerations,” sniffed European Commission President Jose Manuel Barroso.
• Spanish Foreign Minister Jose Manuel Garcia-Margallo said the election was “a jump to nowhere with positive consequences for nobody.”
• Moody’s Investors, which rates countries’ credit status, released a statement that the election “raised the risk that the structural reform movement achieved under the government of Mario Monte will stall, if not come to a complete standstill.”

 

The “successful path” and “reform” that the Monti government put into place has increased Italy’s unemployment rate to 11 percent—50% for youth—shuttered 100,000 small firms, the heart of the Italian economy, and driven a million university graduates out of the country. Growth is a negative 0.9 percent, and the country is facing it second recession in four years.

 

It is not just EU officials and the continent’s mainstream media that have closed ranks to scold Italian voters for not doing what the troika wanted them to do. The U.S. media has taken much the same slant on the election’s outcome, led by the New York Times.

 

A Times piece headlined “Inconclusive vote in Italy invites new wave of financial instability” uses phrases rarely seen outside the editorial pages: “political dysfunction,” “dashed hopes,” failure to form “a credible government,” and characterizing the anti-austerity outpouring as a “protest vote.”  It scolded “mass movements” for having “no patience for missteps or difficult reforms,” and lauded Monti as someone who had “been praised across Europe, for his steady hand and willingness to try to reform the economy.” More ominously it warned that should the Greeks have the audacity to elect a government led by the anti-austerity, leftist Syriza Party, “European leaders” would kick Greece “out of the euro.”

 

The “reforms” the Times refers to—sometimes preceded by the adjectives “difficult” or “painful”—are austerity measures from which the IMF has begun to distance itself.  A report released by the organization this past summer found that the lending organization had profoundly underestimated the negative impact that austerity programs would have on economies, particularly those in Europe. Indeed, the IMF’s chair, Christine Lagarde recently tried unsuccessfully to get the EU to moderate its austerity demands on Greece, and asked Germany to reduce the interest rate it was charging. The effort failed.

 

In a letter to the Financial Times, Emiliano Brancaccio, a professor at the University of Sannio, Italy, and Professor Guiesppe Fontana of Leeds University (UK) argued that the Italian election was “a democratic way to tell policy makers to change course.”  They go on to point out the IMF study and the finding that “countries that have imposed harsh economic measures have suffered deep economic recessions: the harsher the measures, the deeper the downturn,” and that austerity has increased debt ratios, not diminished them.

 

Those massive debts were not the result of profligate public spending—Italy and Spain had budget surpluses—but the product of bank-driven speculation that led to huge housing bubbles. When those bubbles collapsed, economies all over the continent tanked, and taxpayers were asked to bail out the financial institutions that sparked the crisis in the first place. It was this formula of a free pass for speculators and austerity for the average citizen that fueled the anger behind the Italian elections.

 

How those elections shakedown in the short run is unclear. The Five Star Party seems unwilling to join a coalition with the Democratic Party, in part because while the latter is considered center-left, it supported many of Monti’s policies. Berlusconi—well, the moniker “clown” is not far off the mark for him if one adds the word “evil” in front of it—is hardly someone with whom one would want to enter into a coalition, especially because it would include the openly racist, pro-fascist Northern League. In the end, it is possible that Italy will go back to the polls sometime in the coming year.

 

But the anti-austerity lamp is lit and putting it out will not be easy, because Italy is hardly alone.

 

“Portugal has entered a recessionary cycle that has no end in sight,” editorialized Lisbon’s leading newspaper Publico. “Social conditions are worsening and democracy is suffering…the program has failed and it has to be changed. Portugal’s economy is projected to shrink 2%, and unemployment is at 17.5%.

 

The IMF predicts that economic growth in the eurozone as a whole will fall 0.2% in 2013.

 

Even countries considered “stable”—read quiescent in the face of high unemployment, frozen economies and widening economic disparity—like Germany, Britain and the Netherlands are not immune from the spreading anger at the EU’s prescription for economic crisis.

 

Probably the clearest voice of Europe’s anti-austerity movement is Alexis Tsipras, leader of Greece’s Syriza Part. “For our part” says Tsipras, “we are opposed to everlasting austerity as means for fiscal rebalancing on both pragmatic and ideological grounds. The subjugation of democratic process to the markets was the reason why we have the crisis today…we predicted from the onset, well before the IMF admitted to its predictive failures, that austerity-based policies would backfire.”

 

The Greek economy will contract 4.5% in 2013, and the jobless rate is 27 percent, a staggering 62% for young people.

 

Tsipras concludes, “For us, economic policy ought to be inextricably linked to social policy with a view to look after the social needs of the people, of social justice, of intergenerational solidarity and of environmental balance.”

 

Most of Italy, and a growing number of Europeans, would agree.

 

 

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Horses and Horsepucky

 

Dispatches From The Edge

Feb. 21, 2013

As the Great Horsemeat Crisis continues to spread—“gallops” is the verb favored by the European press—across the continent, and countries pile on to blame Romania (France, Holland, Cyprus, etc.), what is becoming increasingly clear is that old-fashioned corporate greed, aided and abetted by politicians eager to gut “costly” regulations and industrial inspection regimes is behind the scandal.

In a sense it is fitting that the whole imbroglio began in Ireland, where inspectors in Ulster first indentified that hamburgers should have more properly been labeled “horsewiches.” The Emerald Isle has more horses than any country in Europe, and, according to the Financial Times, in 2007 Ireland produced 12,633 thoroughbred foals and has some 110,000 “sport” horses.

The year 2007 was just before the Irish real estate bubble imploded, bankrupting the nation and impoverishing millions. And the year the “Celtic Tiger” died was very bad news for horses. Thousands of the creatures were simply turned loose by their financially strapped owners, and the number of horses sent to slaughterhouses jumped from 2,000 in 2008 to 25,000 in 2012.

The Irish-horse connection goes back to when Celtic speaking people first burst out of Central Europe during the second century B.C.  Celtic cavalry and chariots—the Celts introduced the latter to Europe—were pretty formidable, as the Romans discovered on a number of occasions.

Horses have always been a high status item in Ireland, and during the colonial period the English figured out a devilishly clever way to take advantage of that. According to the Irish Penal Laws of 1692, no Catholic—the vast majority of native Irish were Roman Catholics—could own a horse worth more than five pounds. So the English would go into the countryside, select a thoroughbred, and force the breeder to sell them his horse for a pittance. Sometimes the “buyers” would then turn right around and re-sell the animal to its former owner for hundreds of pounds.

When the Irish first discovered horsemeat in the food chain, they claimed innocence and blamed the Poles. It turns out, however, that a small slaughterhouse in Tipperary was shipping horsemeat labeled as beef to the Czech Republic. The British blamed the Romanians, and Rupert Murdoch’s newspaper, The Sun, took the opportunity to indulge in his favorite sport: ethnic bashing. A “grim Romanian slaughterhouse built with EU (European Union) cash” was the culprit, blared the largest (and sleaziest) tabloid in England.

The Romanians did indeed use EU cash to build a plant, but the slaughterhouse produced records showing that they had correctly identified the meat as horse. Romanian Prime Minister Victor Ponta complained that Romania was routinely made the EU’s scapegoat.

Then the Swedes got into the act and blamed France, and it does appear it was the French company Spanghero that slipped “old Dobbin” into the food chain. Spanghero denied the charge and, in its defense, trotted out yet another animal: a weeping crocodile. “My first thought is for the employees,” said a choked up Laurent Spanghero at a press conference. “My second thought goes to our kids and grandkids that carry our name. We have always taught them the values of courage and loyalty and today we have been plunged into dishonor.”

Except, according to French Consumer Affairs Minister Benoit Hamon, Spanghero could hardly have failed to notice that the meat it was importing from Romania was much cheaper than what the company normally paid for beef.  A kilo of horsemeat costs .66 cents, a kilo of beef, $3.95. According to Hamon, Spanghero made $733,800 substituting horsemeat for beef.

Then things got really murky.

The Netherlands said the Cyprus-based meat vendor Draap that sold the meat to Spanghold was responsible, and the company’s track record would suggest the Dutch had a point. In 2012 Draap was convicted of selling South American horsemeat labeled at German and Dutch beef.

But it turns out Draap—based in Cyprus but run by a trust in the British Virgin Islands—is owned by the company Guardstand, that in turn owns part of the arms dealing company, Ilex Ventures. According to prosecutors in New York, convicted international arms dealer Viktor Bout owns Ilex Ventures. Guardstand’s sole shareholder, reports Jamie Doward of The Observer, is Trident Trust, which sets up companies in tax-free nations. Guardstand helped set up Ilex.

Sorting this out will be nigh on impossible, because tax havens like Cyprus and the British Virgin Islands are not about to give up their secrets, and the powerful corporations that shelter their ill-gotten gains there know how to keep inspectors at bay.

Hypocrisy has been in abundance during the Great Horsemeat Crisis.

Owen Paterson, the British environmental secretary who oversees food safety and a member of the Conservative Party, thundered in Parliament about an “international conspiracy.” However, the current Conservative-Liberal government has instituted cutbacks on inspections by the Food Standards Agency (FSA), and turned enforcement over to some 330 local authorities.

“It is a shame that testing by the FSA has been reduced,” Dr. Chris Smart told the Guardian. “I am sure there will be other crises that come along in the next few years.” And given that UK food prices have risen nearly 26 percent that will surely be the case. Inspectors have already uncovered adulterated olive oil and paprika made from roof tiles.

At the heart of this are the continent-wide austerity programs that have driven up the ranks of the poor, requiring low-income families to rely on cheap meat or go without. “Why was horsemeat present in beef burgers?” asks Elizabeth Dowler, a professor of food and social policy at Warwick University,  “Because the price has to be kept as low as possible.” Horsemeat is one-fifth the price of beef, so the temptation is to either adulterate beef with horse, or sell it as cheap beef. “This has the most impact on those with low income and large numbers of children,” says Dowler. “People in this situation have no money to buy better quality burgers, or to go to a butcher and make their own mincemeat. Instead they depend on special 3-for-2 offers. The problem is linked to poverty.”

Horsemeat for some, beer and skittles for the likes of Spanghero.

But the real culprits in this crisis are the banks in Britain, Ireland, Germany, the Netherlands, and Spain that ignited the economic crisis by artificially pumping up real estate bubbles. Up there in the docket with the bankers should be the politicians who shoved through development schemes, waved environmental regulations, and turned a blind eye to speculation. And when everything crashed, the taxpayers—the vast majority of whom never got in on the boom years—got stuck with the bill.

Poor Ireland. The EU enforced austerity scheme has raised the unemployment level to above 15 percent—30 percent for young people—and saddled homeowners with onerous tax and fee hikes. Wages have been cut, health care fees raised more, and welfare butchered. In spite of these “reforms,” the economy grew an anemic 0.9 percent in 2012, and is scheduled to rise to 1.5 percent in 2013, down from the 2.2 the government originally predicted.

And the Irish economy is actually much worse than the figures indicate, because much of the wealth Ireland currently creates goes into the coffers of huge multinationals attracted to the island’s 12.5 percent corporate tax rate, the lowest in Europe. As the Economist points out, “The Irish people have fared much worse than the Irish economy.”

And the pain for the average Irish working person is due to get worse. The 2013 budget will cut spending $4.6 billion, increase taxes, and add yet more austerity in 2014 and 2015. All of this woe has drawn widespread praise from the EU and the International Monetary Fund, which suggests that if a bank praises you, it is time to reach for a barricade.

This is not just a European problem, because the trend toward cutting back on regulations and inspections is worldwide.  For instance, under pressure from the agricultural lobby, the U.S. Food and Drug Administration has backed off trying to reduce the amount of antibiotics used on livestock.  According to a recent report by the National Antimicrobial Resistance Monitoring System, 80 percent of all the antibiotics manufactured in the U.S. are used on animals. The result is that antibiotic-resistant salmonella is spreading rapidly in chicken and turkey populations, and turning up in hospitals, clinics and gymnasiums.

Horsemeat is going to be the least of our problems.

 

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Obama and Europe’s Meltdown

Four More Years: Europe’s Meltdown

Dispatches From The Edge

Conn Hallinan

Feb. 6, 2013

This is the last of five articles analyzing the key issues the Obama administration faces over the next four years.

Back in the 1960s, the U.S. peace movement came up with a catchy phrase: “What if the schools got all the money they needed and the Navy had to hold a bake sale to buy an aircraft carrier?”  Well, the Italian Navy has a line of clothing, and is taking a cut from a soft drink called “Forza Blu” in order to make up for budget cuts. It plans to market energy snacks and mineral water.

Things are a little rocky in Europe these days.

Unemployment is over 25 percent in Greece, Spain and Portugal—and far higher among young people in those countries—and most economies are dead in the water, if not shrinking. Relentless austerity policies have shredded Europe’s traditional social compact with its citizens, fueled a wave of debt-related suicides in the continent’s hard-hit south—Greek suicide rates jumped 37 percent from 2009 to 2011—and locked much of the continent into a seemingly endless spiral: austerity means layoffs, fewer jobs equal less revenue, lower revenues leads to more austerity=the classic debt trap.

“The economic situation in Europe is moving from bad to catastrophic,” says Douglas McWilliams, chief executive for the Centre for Economic and Business Research. “There is a danger that economic problems will spill over into social breakdown.”

So why hasn’t the U.S. Treasury pressured lending agencies, like the International Monetary Fund (IMF) and the World Bank to shift from austerity formulas to stimulation policies? Why is the Obama administration pressing Europeans to increase military spending? And what should it matter to Washington if Britain remains in the European Union (EU)?

It is not just that Europe is in crisis, it is that, as one Portuguese pensioner told Reuters, “We see no light at the end of the tunnel, just more pain and difficulties.” In November the European Commission reported that unemployment on the continent—now in excess of 25 million people—would continue to rise. “The economic outlook is bleak and has worsened in recent months and is not expected to improve in 2013,” the Commission found. “The EU is currently the only major region in the world where unemployment is still rising.”

A UN report predicts that Europe will not recover the jobs lost in the 2008 financial crisis until at least 2017. One EU study found that the crisis threatens to turn the 94 million Europeans between ages 15 and 29 into a “lost generation.”

All this translates into a level of economic misery that Europeans have not seen in more than 80 years. Indeed, Standard & Poor says Greece’s meltdown is worse in “duration and scale” than Germany’s was during the 1930s. The aid agency Oxfam reports that if the Madrid government’s current austerity policies continue, the percentage of people below the poverty line in Spain could rise from 27 percent to 40 percent. United Kingdom Chancellor George Osborne says he expects his country’s austerity program to continue until 2018.

The pain is so intense that it has helped fuel credible regional secession movements in Spain, Belgium, and Scotland.

But the push for yet greater austerity has less to do with a deep concern by Europe’s elites over debt—it is high but manageable—than as part of a stealth campaign aimed at dismantling rules and regulations that protect worker rights, unions, and the environment.

“We are seeing some worrying signs of anti-business rhetoric among some of Europe’s leaders and believe that this is not a productive and collaborate approach to take,” DuPont’s head man for Europe, the Middle East and Africa told the Financial Times. “Business and government need to collaborate to face the challenges of the future.”

The “anti-business rhetoric” comes mainly from workers—and increasingly members of the middle class—desperate to hold on to jobs and a living wage. Ford, General Motors, Hewlett Packard, Citibank and Japan’s Nomura Bank have cut jobs, increasingly moving their operations to “developing countries,” that is, those with weak unions and/or authoritarian governments. While U.S. executives increased their investments in Europe by only 3 percent, they have amped up those in the “developing world” by 25 percent.

In short, corporations are saying to Europeans, give up your working conditions, wages, and benefits, or we export your jobs.

Workers have not taken this employer offensive lying down. There have been strikes and walkouts from Spain to the Czech Republic, and austerity adherents have suffered ballot box reversals. Chancellor Angela Merkel—the queen of harsh economic policies—took a beating in the last round of German state elections.

The Obama administration could help halt Europe’s plunge from first world to second world status, but is has been largely silent on the austerity/debt formula. For instance, last summer an IMF study indicated that endless austerity would not only tank economies across the continent, but also increase the debt problem. However, that study has yet to be translated into policy, even though the fund’s current managing director, Christine Legarde, was the White House’s candidate for the post.

Much the same could be said for the World Bank. The U.S. nominated its current American president, Jim Yong Kim of Dartmouth College.  Rather than stepping back from austerity programs, however, he recently warned developing nations not to use economic stimulus to improve their economies, because it would raise “indebtedness and inflation.”

So, while the U.S. Treasury Department has issued a few mild dissents about the efficacy of austerity programs, the two major economic organizations that the U.S. dominates have held the course—straight for the iceberg.

One thing the White House could do is endorse the call by Alexis Tsipras, leader of the Greek Syriza Party, for a European summit on the debt. Tsipras proposes that such a gathering could do what the 1953 London Debt Agreement did to help post –war Germany recover: cut the debt by 50 percent and spread payments over 30 years.

A major concern for Washington is the North Atlantic Treaty Organization (NATO), originally created in 1949 to deal with a supposed threat of a Soviet invasion of Europe. Recent archive research demonstrates that the Soviets never even had such a plan on paper. The hordes of Red armor pouring through the Fulda Gap was a construct of the Cold War, little more than a rationale for maintaining significant U.S. military forces on the continent.

But NATO’s role shifted after the collapse of the Soviet Union in 1989. Violating a pledge not to push NATO eastwards, the alliance vacuumed up former Warsaw Pact members, Poland, Bulgaria, Romania, Hungary, Czechoslovakia (now two countries), and Albania, and added Latvia, Lithuania, and Estonia. There are currently 28 members of NATO, including the U.S, and Canada.

While NATO intervened in the 1995 Bosnia-Herzegovina war, it was not until the 1999 war with Yugoslavia that the alliance shifted from defense to offense. But the war against Serbia was still “in country,” so to speak, because Yugoslavia is part of Europe. The Sept. 11, 2001 attacks on the World Trade Center and the Pentagon changed all that. While it was the U.S. and Britain that initially invaded Afghanistan, within two years some 50,000 NATO troops were serving in the war, and NATO graduated from a regional formation to an international military alliance.

Its most recent “out of area” operation was Libya, where NATO’s airpower, weapons, and Special Forces overthrew the regime of Muammar Gaddafi. NATO is currently involved in the Syrian war, but so far only to deploy missiles in Turkey and support the insurgents with money, supplies and intelligence. Direct intervention is a possibility, but the muddled nature of the opposition to the Assad regime apparently gives some in the alliance pause. Libya’s current status as a failed state, and the wash-over of that war into the current crisis in Mali, is on everyone’s mind.

The U.S. has long pushed for NATO to become a global alliance that could deal with unrest in Africa, instability in the Middle East and tensions in South Asia and the Pacific. But the Afghanistan experience was a wrenching one for NATO. Rather than a quick war and some feel-good nation building, the war has turned into a quagmire. Member by member, NATO has bailed out in the last three years, and the war is extremely unpopular on the European home front.

But Europeans are not the only people turning away from foreign engagements. The Afghan War is also deeply unpopular in the U.S., which creates a problem, because military power—its actual use or threat of it—has been central to American foreign policy since the 1846 Mexican War. Besides Afghanistan, the U.S. is currently fighting wars in Yemen and Somalia, aiding the French in Mali, chasing after the Lord’s Resistance Army in Uganda, setting up drone bases in North Africa, and increasing its military footprint in Asia and Latin America. The U.S. is also contemplating attacking Iran over its nuclear program.

But while the U.S. economy is currently stronger than Europe’s, spending vast amounts of money on foreign wars is not popular. Having someone to share the bills with—financial and political—is central to strategy. That, in part, explains why the Obama administration has come down so hard on Britain’s Conservative-Liberal government’s plan for a referendum that could see London exit the EU. Britain is one of NATO’s heavy hitters and anything that might weaken that alliance is frowned upon in Washington.

The fact is that the U.S. needs NATO, because it no longer has the resources to go it alone.  That is why the Obama administration is leaning hard on NATO members to step up their military spending, hardly a popular request when the continent is on the ropes financially. The U.S. currently pays about 75 percent of NATO’s bills and would like to see other countries take on more of that burden. It will be a hard sell. Italy, for instance, is cutting 33,000 troops and 30 percent of its senior staff over the next decade. Britain’s Conservatives are finding their plan to spend $36.3 billion on a new generation of nuclear-armed submarines an uphill battle.

The current NATO plan to install anti-missile systems in Romania, Poland, and Turkey is ill-considered and unnecessarily annoys Russia. While the Obama administration was initially skeptical of anti-missile systems—they are expensive, don’t work, and accelerate the arms race—the White House now endorses the deployment. As a result, the Russians are modernizing their missile forces and have halted talks over arms control on the continent. Since Iran has neither the warheads nor the missiles to threaten Europe, one can hardly blame the Russians for assuming the NATO ABM system is aimed at them.

The Obama administration should revitalize the Anti-Ballistic Missile Treaty that the Bush Administration dumped and stop the deployment of destabilizing and provocative ABM systems in Europe (and Asia as well).

NATO is an artifact of the Cold War and long since past retirement. It is also dangerous: if you build an alliance you will eventually use it. The debacle of the Afghan War and the chaos that the Libyan war has unleashed on Africa is a warning that the use of military power is increasingly outdated. It also drains valuable resources better used to confront the economic and environmental challenges the world faces.

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2012 “Are You Serious?” Awards

2012: “Are You Serious?” Awards

Dispatches From the Edge

Dec. 30, 2012

 

Every year Dispatches From The edge gives awards to news stories and newsmakers that fall under the category of “Are you serious?” Here are the awards for 2012.

Dr. Strangelove Award to Lord John Gilbert, former UK defense minister in Tony Blair’s government, for a “solution” to stopping terrorist infiltration from Pakistan to Afghanistan: Nuke ‘em.   Baron Gilbert proposes using Enhanced Radiation Reduced Blasts—informally known as “neutron bombs”—to seal off the border. According to Gilbert, “If we told them [terrorists] that some ERRB warheads were going to be dropped there and that it would be a very unpleasant place to go, they would not go there.”

The border between the two countries is a little over 1,600 miles of some of the most daunting terrain on the planet. And since the British arbitrarily imposed it on Afghanistan in 1896, most the people who live adjacent to it, including the Kabul government, don’t recognize it.

Baron Gilbert went on to gild the lily: “I am absolutely delighted that nuclear weapons were invented when they were and I am delighted that, with our help, it was the Americans who invented them.” The residents of Nagasaki and Hiroshima were decidedly less enthusiastic.

Runner up in this category is the Sandia National Laboratories and Northrop Grumman for researching the use of nuclear powered drones that would allow un-piloted aircraft to stay aloft for months at a time.  Nuclear-powered drones, like the Reaper and the Predator, would not only be able to fly longer and further, the aircrafts could carry a greater number of weapons.

This comes at a time when the Obama administration has approved the use of drones in the U.S. by states and private companies. “It’s a pretty terrifying prospect,” Chris Coles of Drone Wars UK told The Guardian. “Drones are much less safe than other aircraft and tend to crash a lot.” Iran recently claimed to have brought down a U.S.  Scan Eagle drone and to have fired on a Predator. Last year Iran successfully captured a CIA-operated Sentinel drone.

Pandora’s Box Award goes to the U.S. and Israel for unleashing cyber war on the world by attacking Iran’s nuclear industry. The Stuxnet virus—designed by both countries—successfully damaged Iran’s uranium enrichment facility at Natanz, and the newly discovered Flame virus has apparently been siphoning data from Iranian computers for years.

But the “malware” got out of Iran—what do these people not understand about the word “virus”? —and, in the case of Stuxnet, infected 50,000 computers around the world. Two other related malware are called Mini-Flame and Gauss.

Iran retaliated this past summer, unleashing a virus called “Shamoon” to crash 30,000 computers in Saudi Arabia’s oil industry. Saudi Arabia provides 10 percent of the world’s oil needs.

A Russian anti-virus specialist recently told computer expert Misha Glenny that cyber weapons “are a very bad idea,” and his message was: “Stop doing this before it is too late.”

The Golden Lemon Award has three winners this year, the F-35 “Lightning” fighter, the F-22 “Raptor” fighter, and the Littoral Combat Ship (LCS). The F-35 and F-22 are repeat winners from last year’s awards (it is not easy to cost a lot of money and not work, year after year, so special kudos to the aircraft’s manufacturers Lockheed Martin, Boeing, and Northrop Grumman).

At $395.7 billion, the F-35 is now the most expensive weapons system in U.S. history, and the costs are still rising. It has constant problems with its engine,  “unexplained” hot spots on the fuselage, and software that doesn’t function properly. Because the cost of the plane has risen 70 percent since 2001, some of our allies are beginning to back away from previous commitments to purchase the aircraft. Canadians had some sticker shock when it turned out that the price tag for buying and operating the F-35 would be $45.8 billion. Steep price rises (and mechanical problems) have forced Britain, Italy, the Netherlands and Australia to re-think buying the plane as well. If that happens, the price of the F-35 will rise even higher, since Lockheed Martin was counting on U.S. allies to buy at least 700 F-35s as a way to lower per-unit costs. The U.S. is scheduled to purchase 2,457 F-35s at $107 million apiece (not counting weapons). The plane coast $35,200 per hour to fly.

The F-22—at $143 million a pop—has a major problem: the pilots can’t breathe. When your traveling 1500 MPH at 50,000 plus feet, that’s a problem, as Capt. Jeff Haney found out in November 2010 over the Alaskan tundra. The Air Force had to wait until the spring thaw to recover his body. Since then scores of pilots have reported suffering from hypoxia and two of them recently refused to fly the aircraft. The breathing problems did not stop U.S. Defense Secretary Leon Panetta from deploying two-dozen F-22s to Japan, although the planes are restricted to lower altitudes and have to stay no more than an hour and a half from land. That will require the pilots to fly to Alaska, and then hop across the Pacific via the Aleutian Islands to get to Kadena Air Base on Okinawa.

The cost of operating an F-22 is $128,389 a flying hour. In comparison, the average income for a minimum wage worker in the U.S. is $15,080 a year, the medium yearly wage is $26,364, and average yearly household income is $46,326. Dispatches suggests paddling the planes to Japan and raising the minimum wage.

The LCS is a very fancy, shallow water warship with lots of bells and whistles (at $700 million apiece it ought to have a few of those) with one little problem: “It is not expected to be survivable in a hostile combat environment,” according to one Pentagon weapon’s tester. Since combat is generally “hostile” that does restrict what the ship can do. And given that cracks and leaks in the hulls are showing up, it might not be prudent to put them in the water. So while it may not work as a traditional ship—floating, that is—according to the LCS’s major booster in the Congress, U.S. Rep. Jo Bonner (R-Ala) “It’s going to scare hell out of folks.”

Particularly the ones who serve on it.

The LCS was originally designed to fight Iranian attack boats, but the feeling now is that it would lose in such encounters. But all is not lost. According to Joseph Rella, president of Austal USA, the company in Alabama that builds the LCS, “If I was a pirate in a little boat, I’d be scared to death.” Dispatches suggests that rubber “wolf man” masks would accomplish the same thing for considerably less money.

The Golden Sow’s Ear Award to U.S. Rep. Harold Rogers (R-Ky) for successfully lobbying the Pentagon to buy an oil drip pan for the Army’s Black Hawk helicopter for $17,000 a throw. The manufacturer, Phoenix Products, is a major contributor to Rogers’ campaigns. A similar product made by VX Aerospace costs $2,500 apiece. But Phoenix does have a strong streak of patriotism: The oil drip pans are discounted from the $19,000 retail price.

The Misplaced Priorities Award to Canadian Prime Minister Stephen Harper and his Conservative Party for shelling out $28 million to celebrate the bicentennial of the War of 1812—including $6.3 million in television ads—while cutting $5.2 billion from the national budget and eliminating 19,200 federal jobs. The cuts have fallen particularly hard on national parks and historic sites.

Canada was not Canada in 1812, and the war was between the U.S. and the British Empire. Canada did not become a country until 1867.

The Queen of Hearts Award also goes to Harper and his Conservatives for “streamlining” the process of approving new oil and gas pipelines and limiting public comment. “Limiting” includes threats to revoke the charitable status of environmental groups that protest the pipelines and unleashing Canada’s homeland security department, Public Safety Canada (PSC), on opponents. The PSC considers environmentalists potential terrorists and lumps them in the same category as racist organizations. Dispatches suggests that Harper and Co. study the works of Lewis Carroll on how to sentence first, try later. Saves time and money.

The Chernobyl Award to the Japanese construction company BuildUp, hired by the Tokyo Electric Power Company (TEPCO) to clean up the Fukushima nuclear plant that melted down in the aftermath of last year’s tsunami. A government report found that TEPCO did not issue radiation detectors to most of its workers even though it had hundreds of dosimeters on hand. BuildUp admitted that it had workers put lead plates over the detectors to avoid violating safety thresh holds.

Teruso Sagara of BuildUp said the company only had their employees’ best interests in mind and thought that “we could bring peace of mind to the workers if we could somehow delay their dosimeters’ alarms going off.”

The report also cited the government for refusing to use computer projections on fallout from the crippled plant. In one case, two communities were directed into the middle of the radioactive plume.

The Chicken Little Award to the British government and the International Olympic Committee for approaching the 2012 London Olympics in much the same way the allies did the beaches at Normandy in 1944.  The government deployed 13,500 ground troops, 20,000 private guards, plus the Royal Navy’s largest warship, along with armed helicopters, armored personnel carriers and Starstreak and Rapier anti-aircraft missiles.

According to Linden Empson, Dispatches intrepid reporter on the scene, the announcement that surface-to-air missiles were going to installed on six housing projects in the city were “delivered via a pizza company.” She suggested that was both “terrifying and hysterically funny.” One resident of Fred Wigg Tower told the New York Times that the leaflets “looked like one of those things where you get free pizza though the post, but this was like free missiles.”

The local residents were not amused and sued to stop the deployment. “Is the government seriously suggesting the answer to potential airborne threat is to detonate it over the city?” a former Royal Artillery officer wrote in a letter to The Guardian. The court eventually ruled against the residents.

The cost of all this security is close to $900 million at a time when the Conservative-Liberal government is slashing social welfare programs, education, and health care.

The Selective Reporting Award to the Los Angeles Times for reporting that the Assad regime was using cluster bombs, which “have been banned by most nations.” The newspaper pointed out that more than 100 countries had signed the Convention on Cluster Munitions, but that Syria did not.

Quite true. What went unmentioned was that neither did the U.S., Russia, China, Pakistan, India, and Israel. According to the Cluster Munitions Coalition, the weapons “caused more civilian casualties in Iraq in 2003 and Kosovo in 1999 than any other weapon system.” The U.S. also used clusters in Afghanistan. American cluster weapons still take a steady toll of people in Laos, Cambodia and Vietnam. All of those cluster weapons were made in the USA.

The most egregious use of clusters in the last decade was by Israel, which spread four million submunitions in Lebanon during its 2006 invasion of that country. According to the UN, one million of those “duds” remain unexploded.

But the U.S. also uses the weapon on many occasions. In 2009, President Obama ordered a cluster strike in Yemen that ended up killing 44 people, including 14 women and 21 children. And the White House, according to The Independent, “is taking the leading role “to torpedo the global ban on clusters.” The administration argues that clusters manufactured after 1980 have less than a 1 percent failure rate, but anti-cluster activists say that is not the case. The widely used BLU-97, for instance, has a failure rate of 30 percent.

According to Handicap International, 98 percent of the casualties inflicted by clusters are civilians, 27 percent of those children.

 

 

—30—

Turkey Haunted by Hubris

Turkey Haunted by Hubris

Dispatches From The Edge

Conn Hallinan

Nov. 1, 2012

Two years ago Turkey was on its way to being a player in Central Asia, a major power broker in the Middle East, and a force in international politics. It had stepped in to avoid a major escalation of the 2008 war between Georgia and Russia by blocking U.S. ships from entering the Black Sea, made peace with its regional rivals, and, along with Brazil, made a serious stab at a peaceful resolution of the Iran nuclear crisis.

Today it is exchanging artillery rounds with Syria. Its relations with Iraq have deteriorated to the point that Baghdad has declared Ankara a “hostile state.” It picked a fight with Russia by forcing down a Syrian passenger plane and accusing Moscow of sending arms to the regime of Bashar al-Assad. It angered Iran by agreeing to host a U.S. anti-missile system (a step which won Turkey no friends in Moscow either). Its war with its Kurdish minority has escalated sharply.

What happened? The wages of religious solidarity? Ottoman de’je vu?

There is some truth in each of those suggestions, but Turkey’s diplomatic sea change has less to do with the Koran and memories of empire than with Illusions and hubris. It is a combination that is hardly rare in the Middle East, and one that now promises to upend years of careful diplomacy, accelerate unrest in the region, and drive Turkey into an alliance with countries whose internal fragility should give the Turks pause.

If there is a ghost from the past in all this, it is a growing alliance between Turkey and Egypt.

Population-wise, the two countries are among the largest in the region, and both have industrial bases in an area of the world where industry was actively discouraged by a century of colonial overlords (the Turks among them). Ankara recently offered $2 billion in aid to cash-strapped Egypt, and both countries have moderate Islamic governments. Cairo and Ankara have also supported the overthrow of the Assad regime.

“Apparently now Egypt is Turkey’s closest partner in the Middle East,” Gamel Soltan of American University in Cairo told the New York Times. But while Egypt was once the Ottoman’s wealthiest provinces, 2012 is not the world of sultans and pashas, and, in this case, old memories may well be a trap.

Egypt is deeply mired in poverty and inequality. Indeed, it was as much the economic crisis gripping the region as issues of democracy and freedom that filled Tahrir Square. Cairo is in serious debt and preparing a round of austerity measures that will sharpen that inequality. The government of President Mohamed Morsi announced it will slice gas subsidies, which will fall particularly hard on the poor, especially given a jobless rate of over 12 percent and youth unemployment running at more than double that.

At first glance, both governments have a lot in common, particularly because Turkey’s Justice and Development Party (AKP) and Egypt’s Muslim Brotherhood are considered “moderately” Islamic. But many in the Brotherhood consider the AKP and Turkish Prime Minister Recep Tayyip Erdogan far too “moderate”—in Turkey it is still illegal to wear a head scarf if you run for public office or work in a government office.   While the West considers Morsi’s and Erdogan’s government “Islamic,” some of the jihadists groups Cairo and Ankara are aiding in their efforts to overthrow the Assad regime in Syria consider the Egyptian and Turkish government little more than non-believers or apostates.  As Middle East expert Robert Fisk puts it, the jihadists are a scorpion that might, in the end, sting them both, much as the Taliban has done to its Pakistani sponsors.

Turkey apparently hopes to construct a triangle among Ankara, Cairo, and the wealthy oil monarchies of the Gulf Cooperation Council—Saudi Arabia, Qatar, Kuwait, Bahrain, Oman, and the United Arab Emirates (Jordan and Morocco, two other monarchies, have been asked to join). The combination of population, industry, and wealth, goes the thinking, would allow that alliance to dominate the region.

The Council does have enormous wealth at its disposal, but how stable are autocratic monarchies in the wave of the democratic aspirations raised by the Arab Spring? Bahrain’s king rules through the force of the Saudi Army. Saudi Arabia itself is struggling to provide jobs and housing for its growing population, while weighed down by inequality, high unemployment, rampant corruption, and a restive Shia minority in its eastern provinces. Jordan’s monarch is wrestling with an economic crisis and a political opposition that is pressuring king Abdullah II for a constitutional monarchy.

How this new alliance will affect the Palestinians is not clear. Turkey had a falling out with Israel in 2009, and Egypt and Qatar have been sharply critical of Tel Aviv’s treatment of the Palestinians. So far, however, it appears the Islamic group Hamas in Gaza will benefit more than the secular Palestinian National Authority in the West Bank.

With the exception of Bahrain, all the countries involved have large Sunni majorities that, at first glance, would put them on the same page religiously. But most the Gulf monarchs are aligned with radical Islamic groups, some of which have morphed into al-Qaeda-like organizations that have destabilized countries from Pakistan to Iraq. On occasion, these groups have turned on their benefactors, as Osama bin Laden did on Saudi Arabia.

Such Islamic groups are increasingly active in the Syrian civil war, where Turkey finds itself in a very similar role to the one played by Pakistan during the 1979-89 Soviet-Afghan war. Some of the groups Pakistan nurtured during those years have now turned on their patrons. Will Turkey become the next Pakistan? In an interview with the Financial Times, one Syrian insurgent said that many of the rebels were stockpiling ammunition for “after the revolution.”

Bulent Alizira of the Center for Strategic and International Studies told the Financial Times that Turkey is in danger of becoming “like Pakistan, which became the forward base for the Afghan rebels. If that were to happen, it could confront all the pressures that Pakistan faced and from which it has never recovered.”

And why would the Erdogan government pick a fight with Russia? Russia is a major trading partner, and Turkey is keen on establishing good relations with the Shanghai Cooperation Organization (SCO) founded by Russia and China in 2001. The organization includes most of the countries in Central Asia, plus observers from India, Pakistan, Iran, and Afghanistan. The SCO accounts for 75 percent of the world’s energy resources and population, and coordinates everything from trade to oil and gas pipelines. Why would Ankara irritate one of the major players in the SCO?

Might it be pique at Moscow for blocking more aggressive measures by the UN Security Council to intervene in the Syrian civil war?  Russia, along with China, has consistently called for a political resolution to the Syria crisis, while Turkey has pursued a strategy of forcible regime change.  Erdogan has a reputation for arrogance and letting his temper get the best of him.

“His personal ambitions and overweening certainties may be eclipsing his judgment,” Morton Abramowitz of the Century Foundation told UPI, “and affecting Turkish interests.” Abramowitz served in the Carter and Reagan administrations and was appointed ambassador to Turkey from 1989 to 1991. He is also a director at the National Endowment for Democracy.

Relations between Turkey and Iran have also cooled, in part because of the U.S. anti-missile system, but also because Ankara is trying to overthrow one of Iran’s few allies in the region. In any case, backing Sunni jihadists against the Alawite Assad regime is hardly going to go down well in Shia Iran, or for that matter, in Shia Iraq. The Alawites are a branch of Shism.

Why, too would Turkey alienate major trading partners like Iran and Iraq? It is possible that the wealthy monarchies of the Gulf—who are anti-Shia and view Iran as their greatest threat— made Ankara an offer it can’t refuse. Whether the monarchies can deliver in the long run is another matter.

In the meantime, the Syrian war has unleashed the furies.

*Car bombs have made their appearance one again in Lebanon.

*The Kurds have bloodied the Turkish Army.

*Hundreds of thousands of refugees have poured out of Syria, and the fighting inside the country is escalating.

*Anti-aircraft missiles—the Russian SAM-7, or Strela, most likely “liberated” during the Libya war—have made an appearance. The hand-fired missiles may indeed discomfort Syrian aircraft, but if they get into the hands of the Kurds, Turkish helicopters will be in trouble as well, as will any number of other air forces, from Lebanon to Jordan. A Strela was fired at an Israeli aircraft in the Gaza Strip Oct. 16.

Turkey’s role in the Syrian civil war finds little resonance among average Turks. Some 56 percent disagree with the policy, and 66 percent oppose allowing Syrian refugees into the country.

“We are at a very critical juncture,” journalist Melih Asik told the New York Times. “We are not only facing Syria, but Iran, Iraq, Russia and China. Behind us we have nothing but the provocative stance and empty promises of the US.”

Four years ago Turkey set out to build strong ties with other countries in the region—“zero problems with the neighbors”—and decrease its dependence on the US. Today those policy goals are in shambles. But that is where illusion and hubris lead.

—30—

Syria & The Phantom

Syria & The Phantom

Dispatches From The Edge

Conn Hallinan

June 26, 2012

What was that Turkish F-4 Phantom II up to when the Syrians shot it down?

Ankara said the plane strayed into Syrian airspace, but quickly left and was over international waters when it was attacked, a simple case of carelessness on the part of the Turkish pilot that Syrian paranoia turned deadly.

But the Phantom—eyewitnesses told Turkish television that there were two aircraft, but there is no official confirmation of that observation—was hardly on a Sunday outing. According to the Financial Times, Turkey’s Foreign Minister, Ahmet Davutoglu, told the newspaper “the jet was on a test and training mission focused on Turkey’s radar defense, rather than Syria.”

Translation: the F-4 was “lighting up” a radar net. It is a common—if dangerous and illegal—tactic that allows one to probe an opponent’s radar system. Most combat radar is kept in a passive mode to prevent a potential enemy from mapping out weaknesses or blind spots that can be useful in the advent of an attack. The probes also give you valuable information on how to neutralize anti-aircraft guns and ground to air missiles.

“Lighting up” radar was what the US Navy EP-3E Aries II was doing near China’s Hainan Island when it collided with a Chinese interceptor in 2001. Nations normally take a very dim view of warplanes entering their air space, particularly if there is tension between the countries involved.

As a warplane, the F-4 is a pretty ancient. It was introduced back in 1960, and became the mainstay of the U.S. air war in Southeast Asia. In its day it was a highly capable aircraft, able to hold its own against interceptors like the MIG-21 in a dogfight, and could also carry heavy bomb payloads. It was also cheap and relatively trouble free, unlike the current crop of US high performance aircraft.

It is doubtful that Syria indentified exactly what the Turkish plane was, just that an unidentified warplane, flying low—generally the altitude one takes when trying to avoid radar—was in Syrian airspace. Paranoia? In 2007 Israeli warplanes—US-made F-16s, not Phantoms—slipped through Syria’s radar net and bombed a suspected nuclear reactor.

Even if Syria identified the plane as a Phantom, they could have taken it for an Israeli craft. Israel was the number one foreign user of F-4s, although they retired them in 2004. Indeed, the Turkish Phantom might even have begun life as an Israeli warplane.

If the Syrians are on hair-trigger alert, one can hardly blame them. The US, the European Union (EU), and NATO openly admit they are gunning to bring down the Assad regime.  Turkey is actively aiding the Free Syrian Army organize cross-border raids into Syria, and it is helping Saudi Arabia and Qatar supply arms and ammunition to the rebels.

For Turkey to send a warplane into Syrian airspace—or even near the Syrian border—on a radar mapping expedition at this moment was either remarkably provocative or stone stupid. The explanation could be more sinister, however.

NATO has established a command and control center in Iskenderun, Turkey, near the Syrian border, that is training and organizing the Free Syrian Army. It surely has a sophisticated setup for tapping into Syrian electronic transmissions and, of course, radar networks. If NATO eventually decides to directly intervene in Syria, the alliance will need those electronic maps. NATO aircraft easily overwhelmed Libya’s anti-aircraft systems, but Syria’s are considerably more sophisticated and dangerous.

There are a number of things about the incident that have yet to be explained. Turkey says the F-4 was 13 nautical miles from Syria when it was attacked—which would put it in international waters—but it crashed in Syrian waters. Damascus claims the plane came down less than a mile from the Syrian coast.

Turkey says one of its search planes was shot at as well—the Syrians deny this—and has called for a meeting of its NATO allies. So far, Ankara is only talking about invoking Article Four of the NATO treaty, not Article Five. Four allows for “consultations”; Five would open up the possibility of an armed response.

A thorough investigation of the incident seems in order, although Turkey’s Davutoglu says, “No matter how the downed Turkish jet saga unfolds…we will always stand by the Syrian people until the advent of a democratic regime there.” In short, regardless of what happened, Turkey will continue to pursue regime change in Damascus.

The Assad regime’s heavy-handed approach to its opponents played a major role in sparking the current uprising, but the default position of regime change by the EU and NATO has turned this into a fight to the death. Assad is broadly unpopular, but not universally so, and the support of the regime is not limited to his own Islamic sect, the Alawites, or other minorities, like the Christians.

Nor is all of the opposition a paragon of democratic freethinking. The heavy role played by Saudi Arabia and Qatar in supplying arms and money to the rebels, means the deeply conservative Salafist sect of Islam has a major presence in the resistance. This is exactly how the Afghan mujahedeen mutated into the Taliban and al-Qaeda.

The demand for regime change by the US, the EU, and NATO torpedoed the United Nations effort for a diplomatic solution. The Assad regime had no stake in a peaceful resolution, since it would mean its ouster in any case. And the opposition knew it need not respect a ceasefire, since everyone who supports them supports regime change.

It was into this situation that Turkey flew an F-4 Phantom through Syrian airspace. Exactly what did Ankara think Syria would do? On the other hand, maybe it knew exactly what Syria would do.

Conn Hallinan can be read at dispatchesfromtheedgeblog.wordpress.com and middleempierseries.wordpress.com

—30—

Greed & the Pain in Spain

Greed & the Pain in Spain

Dispatches From the Edge

June 14, 2012

Nobel Laureate economist Joseph Stiglitz characterizes the Spanish bank bailout as “voodoo economics” that is certain “to “fail.” New York Times economic analyst Andrew Ross Sorkin agrees: “By now it should be apparent that the bailout has failed—or at least on its way to failing.” And columnist and Nobel Prize-winning economist Paul Krugman bemoans that Europe (and the U.S.) “are repeating ancient mistakes” and asks, “why does no one learn from them?”

Indeed, at first glance, the European Union’s response to the economic chaos gripping the continent does seem a combination of profound delusion, and what British a reporter called “sado-monetarism”—endless cutbacks, savage austerity, and widespread layoffs.

But whether something “works” or not depends on what you do for a living.

If you work at a regular job, you are in deep trouble. Spanish unemployment is at 25 percent—much higher in the country’s southern regions—and 50 percent among young people. In one way or other, those figures—albeit not quite as high—are replicated across the Euro Zone, particularly in those countries that have sipped from Circe’s bailout cup: Ireland, Portugal, and Greece.

But if you are Josef Ackermann heading up the Deutsche Bank, you earned an 8 million Euro bonus in 2012, because you successfully manipulated the past four years of economic meltdown to make the bank bigger and more powerful than it was before the 2008 crash. In 2009, when people were losing their jobs, their homes, and their pensions, Deutsche Bank’s profits soared 67 percent, eventually raking in almost 8  billion Euros for 2011. The bank took a hit in 2012, but the Spanish bailout will help recoup Deutsche Bank’s losses from its gambling spree in Spanish real estate.

And, just in case you thought irony was dead, it was the Spanish housing bubble that tanked that country’s economy—at the time Madrid’s debt was among the lowest in the Euro Zone—and German banks (as well as Dutch, French, British and Austrian) financed that bubble. German Banks also financed the real estate bubble that crashed Ireland’s economy. Some 60 percent of Deutsche Bank’s income is foreign based.

Consider this figure: in 1997 real estate loans in Ireland were 5 billion Euros. By 2007 they were 96.2 billion Euros, a jump of 1730 percent. Real estate prices rose 500 percent, the same amount that Spanish housing prices increased. The banks didn’t know they were pumping up a bubble?  Of course they knew, but they were making money hand over fist.

When the American financial industry self-destructed in 2008, the Irish and Spanish bubbles popped, and who got the bill? Irish taxpayers shelled out $30 billion to bail out the Anglo-Irish Bank—essentially the country’s total tax revenues for 2009—and in return got a 15 percent unemployment rate, huge cuts in the minimum wage, pension reductions, and social service cutbacks.  Spain is headed in the same direction.

As Spanish economist and London School of Economics professor Luis Garicano told the New York Times, “Unfortunately, Spain did not manage to reach one of its main goals in the negotiations [over the bailout], which was to have Europe bear part of the risk of rescuing the financial sector, without letting it fall instead directly onto the shoulders of the Spanish taxpayers.”

Garicano went on to complain, “Those who lent to our financial system were the banks and the insurance companies of Northern Europe, which should bear the consequences of these decisions.”

But of course they will not. Instead, the banks got to go to the casino, gamble other people’s money, and get repaid for their losses. That’s sweet work if you can get it.

However, the “sado-monetarism” strategy is about more than just bailing out the banks at the expense of the vast majority of European taxpayers. It cloaks its long-term designs in coded language: “rigid labor market,” “internal devaluation,” “pension reform,” “common budgetary process,” “political union.”

A quick translation.

“Rigid labor market” means getting rid of contracts that guarantee decent wages, working conditions and benefits, all won through a long process of negotiations and industrial action. As the New York Times put it, the current rightwing Spanish government is attempting to “loosen collective bargaining agreements.”

The drive to scrap union contracts is coupled with “internal devaluation,” which, as Krugman points out, “basically means cutting wages.” If the working class can be forced to accept lower wages and slimmer benefits—and there is no better disciplinarian in these regards than a high unemployment rate—profits will go up. Sure, the vast majority will be poorer, but not the people who run Deutsche Bank.

“Pension reform” simply means impoverishing old people, who had nothing to do with the real estate bubbles that brought down Ireland and Spain. But again, someone has to sacrifice, and old people don’t have all that much time left anyhow.

Oh, for ice floes to put them on.

“Common budgetary process” and “political union” means giving up national sovereignty in the service of keeping the banks solvent—in essence, the end of democracy on the continent. People could then elect any one they pleased, but no national government would have any say over economic policy. Want to do a bit of pump priming to get the jobless rate down and tax revenues up? Nope. But feel free to paint park benches any color you like.

The 100 billion Euro ($125 billion) Spanish bailout will fail for the average Spaniard, as bailouts have already failed the Irish, Portuguese and Greeks, and it will lock Spain into generations of debt. Italy is next (not counting the small fry like Cyprus and several Eastern European countries that may fall before Rome is finally sacked). The Euro Zone’s economies are predicted to contract 0.1 percent for all of 2012, and the jobless rate for the 17-country bloc is 11 percent, higher than at anytime since the Euro was established in 1999.

Spain’s right-wing prime minister, Mariana Rajoy, has tried to argue that the bailout was not as onerous as those imposed on Ireland, Portugal and Greece, but the Germans soon set him straight: “There will be a troika [the European Union, European Central Bank, and International Monetary Fund] and it will make sure the program is being implemented,” German Finance Minister Wolfgang Schaube told the Financial Times.

It is not unlikely that the Euro will fall sometime in the next year, but of course the debts will remain. The dead hand of the past will lie on the brow of the living for a long, long time to come.

Financier George Soros puts much of the blame for the current crisis on Germany—indeed, he accuses Chancellor Angela Merkel of trying to establish a “German Empire”—but that is simplistic. Germany has certainly led the “sado-monetarian” charge, but this strategy is not just about unleashing the austerity Panzers to establish a Fourth Reich. All over the world, capital is on the march, with the goal of rolling back the social programs of the post-World War II period and returning to the Gilded Age when the rich did pretty much as they pleased.

Weakening unions is central to this, as is privatizing everything capital can get its hands on, and the economic crisis is the perfect cover to try an accomplish this. For a fascinating analogy, pick up Indian journalist P. Sainath’s brilliant “Everyone Loves A Good Drought” that exposed how wealthy landlords in India manipulated a natural crisis to increase their grip over agriculture.

Former Deutsche Bank head Ackermann recently prattled on about the “social time bomb” of economic inequality, but so far he has not offered to share his 8.8 million Euro bonus. In the meantime, according to the International Labor Organization, youth global unemployment will reach 12.7 percent this year and stay there for at least four years, creating a “lost generation” of workers.

So, the answer to Krugman’s question, “why are they repeating ancient mistakes?”

Because they are making out like bandits.

–30–

Latin America Delivers A Swift Kick

Latin America Delivers A Swift Kick

Dispatches From The Edge

March 30, 2012

On one level, April’s hemispheric summit meeting was an old fashioned butt kicking for Washington’s policies in the region. The White House found itself virtually alone—Dudley Do Right Canada its sole ally—on everything from Cuba to the war on drugs. But the differences go deeper than the exclusion of Havana and the growing body count in Washington’s failed anti-narcotics strategy. They reflect profound disagreements on how to build economies, confront inequity, and reflect a new balance of power in world affairs.

The backdrop for the summit is anger in Latin America over the failure of the U.S. and Europe to stimulate their economies, all the while pursuing policies that have flooded the region with money—a “ monetary tsunami” in the words of Brazilian President Dilma Rousseff—driving up the value of southern hemisphere currencies and strangling local industries.

After meeting last month with President Obama, Rousseff said she told him of Brazil’s “concern with the expansionary monetary policies of the rich countries…leading to the depreciation of developed countries currencies and compromising growth among emerging economies.”

While Latin American economies are in better shape than those in Europe and the U.S., the recession dogging the latter areas—plus the cooling of the Chinese economy—has slowed growth throughout much of Latin America. Brazil’s most recent figures indicate a stalled economy, which could have an impact on efforts by the Rousseff government to raise living standards and narrow what was once the world’s biggest gap between rich and poor.

According to the Getulio Vargas Foundation Brazil has lifted 33 million out of extreme poverty since 2003 and, out of a population of 190 million, has created a relatively well-paid workforce of some 105.5 million. In contrast to the U.S. and Europe, where the wealth gap is accelerating, income for the poorest 50 percent of Brazilians has risen 68 percent, while for the top 10 percent, it has grown only 10 percent.

This growth has come about because most countries in Latin America reject the economic model pushed by Washington and the European Union: free trade, financial deregulation, and deep austerity.

Argentina is the poster child for the region’s rejection of the so-called “Washington consensus.” Throughout much of the ‘90s, a deeply indebted Argentina followed the strictures of the International Monetary Fund (IMF), slashing government spending and instituting a suffocating austerity. The result was a “debt trap”: cutbacks increased unemployment, which dampened tax revenues, which required yet more cutbacks, and more unemployment. In the end, debts went up. From 1998 to 2002, Argentina’s economy shrank 20 percent. By the time Buenos Aires finally said “enough” and defaulted on its $100 billion sovereign debt, half of its 35 million people were below the poverty line.

Argentina reversed course and primed the economy with government spending on housing, highways and education. It also subsidized 1.9 million low-income families, which cut poverty in half. Since 2002, the economy has grown at an average rate of 6 percent a year, and joblessness has fallen from 20 percent to 8 percent.

Brazil has followed a similar strategy that is now threatened by the fiscal and monetary policies of the U.S. and Europe. Those policies have caused the value of Brazil’s currency, the real, to grow, which prices Brazilian manufactured goods out of the international market.

“There is concern in South America about deindustrialization,” says Alicia Barcena of the UN Economic Commission for Latin America. “Therefore some countries are taking measures to support their productive sectors.” While the Obama Administration calls this support “protectionism,” Brazilian Finance Minister Guido Mantega says, “The measures we are using are to defend ourselves.”

There are other issues Latin Americans are unhappy about that never made it into U.S. media accounts on the summit, in particular the make-up of the permanent members of the United Nations Security Council that Brazil—along with India and South Africa—would like to join.

As former Brazilian President Luiz Lula da Silva told the African Union summit last July, “It isn’t possible that the African continent, with 53 countries, has no permanent representation in the Security Council. It isn’t possible that Latin America with its 400 million inhabitants does not have permanent representation. Five countries decide what to do, and how to do it.”

The five permanent members of the Security Council are the U.S., Britain, France, Russia, and China.

While the U.S. has endorsed India’s bid—in large part because it is wooing New Delhi to join its anti-China coalition—Washington has been consciously silent on Brazil’s bid.  Indeed,  United Nations U.S. representative Susan Rice has been sharply critical of Brazil, India and South Africa for not supporting intervention in Syria. “We have learned a lot [about these three countries] and frankly, not all of it encouraging.” The message is clear: back us and we will think about it.

The summit was particularly critical of the Obama administration around the exclusion of Cuba, causing the President to turn positively peevish. “Sometimes I feel…we’re caught in a time warp, going back to the 1950s and gunboat diplomacy and Yankees and the Cold War.”

But from Latin America’s point of view, by maintaining a half-century-old blockade, it is the U.S. who seems locked into the world of the Cold War. And there are, indeed, some worries about “gun boats,” specifically those that make up the newly re-constituted U.S. Fourth Fleet, mothballed in 1950 and revived by the Bush Administration. The U.S. has also recently established military bases in Colombia and Central America.

The Brazilians are particularly nervous about the security of their newly found offshore oil deposits, and the head of the Brazilian Navy, Admiral Luiz Umberto de Mendonca, is pressing Brasilia for surface ships and submarines.

Testifying before the Brazilian House of Representatives,  Simon Rosental of the prestigious Escuela Superior de Guerra (ESG) institute warned that “The world has known oil reserves that will only last 25 years and in the United States, only for the next ten years.”

It may be a bit of a stretch to imagine the U.S. actually threatening Brazil’s offshore oil deposits, but Latin Americans can hardly be blamed if they are a tad paranoid about the Colossus of the North. For the past 100 years the U.S. has overthrown governments from Guatemala to Chile, and supported military juntas throughout the region. Brazil only recently emerged from its own U.S.-backed dictatorship.

“South America,” says Moniz Banderia of the ESG, “is really trying to define its own identity, to differentiate itself from the United States, in opposition to its domination, which is evident in the creation of UANSUR [Union of South American Nations] and the South American Defense Council.”

UNASUR was established in 2008 and includes all 12 South American nations, plus observers from Panama and Mexico.

The Defense Council’s Action Plan 2012 aims to integrate the militaries of the region, establish a “peace zone” on the continent, and create a space agency, an essential step for launching satellites.

Certainly issues like Cuba, the war on drugs, and the tensions over Britain’s claim on the Malvinas/Falkland Islands are areas of friction between the U.S., Europe and South America. But it is in the realm of economics, poverty alleviation, and independent foreign policy that the differences are sharp.

South Americans tried the austerity model and found it wanting. They have also seen the U.S. and NATO spark wars in Afghanistan, Iraq, and Libya, and they are deeply suspicious of policy of “humanitarian intervention” in places like Syria because they don’t trust the motives behind it. Members of the BRIC countries, made up of Brazil, South Africa, India, Russia, and China, share those suspicions.

“There’s almost a third-world sense, a post-colonial sense,” says Mark Quarterman of the Center for Strategic and International Studies, “that they were meddled in, in ways that didn’t rebound to their benefit, and now the same countries are claiming humanitarian reasons for meddling.”

Thus in Libya, the UN enforced an arms boycott and an oil embargo on the Qaddafi regime, while the French supplied arms to the rebels and Qatar handled rebel oil sales. Brazil and other BRIC nations see a similar pattern in Syria. In the meantime, the U.S. and Europe are conspicuously silent on oil-rich Bahrain’s suppression of its Shiite majority and the lack of democracy in the monarchy-dominated Persian Gulf states.

So far the Obama Administration has responded to South America’s growing independence by increasing the U.S. military footprint in the region and acting churlish. While the leaders of India and South Korea got formal state affairs, the U.S. President gave Rousseff a two-hour meeting. “Obama could have taken her to dinner,” one Brazilian official complained to The Guardian (UK) “or to the Kennedy Center.”

But Latin Americans no longer pay as much mind to the atmosphere in Washington as they used to. They are too busy confronting poverty and underdevelopment, forging a multi-polar world in which the U.S. is looking increasingly out of touch.

—30—

Ireland’s Debt and the Heart of St. O’Toole

Ireland’s Debt & the Heart of St. O’Toole

Dispatches From The Edge

Conn Hallinan

March 17, 2012

Someone has pinched the heart of St. Lawrence O’Toole, and thereby hangs a typical Irish tale filled with metaphors, parallels, and some pretty serious weirdness.

Who done it? The suspects are many and varied.

Could the heist from Dublin’s Christ Church Cathedral have been engineered by the infamous “troika” of the European Commission, the European Bank, and the International Monetary Fund?  Seems like a stretch, but consider the following: O’Toole—patron saint of Dublin—was, according to the Catholic Church, famous for practicing “the greatest austerity.” Lawrence liked to wear a hair shirt underneath his Episcopal gowns and spent 40 days in a cave each year.

That is a point of view the troika can respect. They have overseen a massive austerity program in Ireland that has strangled the economy, cut wages 22 percent, slashed education, health care, and public transport, raised taxes and fees, and driven the jobless rate up to 15percent—30% if you are young. At this rate many Irish will soon be living in caves, and while hair shirts may be uncomfortable, they are warm.

There are other suspects as well. For instance, St. O’Toole was friendly with the Norman/English King Henry II, who conquered the island in 1171. The Irish are not enamored of Henry II, indeed most of them did their level best to drive the bastard into the sea. Not Lawrence. He welcomed Henry to Dublin and, according to the Church, “Paid him due deference.”

So “deference” establishes yet another suspect: the current Fine Gael/Labor ruling coalition. Fine Gael leader and Irish Taoiseach (Prime Minister) Enda Kenny has already signed the new European Treaty, but was forced to put it up for a public referendum at home (no other EU county is being allowed to vote “yea” or “nay”). Kenny is pressing for a “yes” vote, and Labor’s Tánaiste Eamon Gilmore argues that a “yes” vote would be a “vote for economic stability and a vote for economic recovery.”

The Treaty will not only continue the austerity program, it will move decision-making to EU headquarters in Brussels. This means that governments will be powerless when it comes to the economy. Think “Model United Nations” and lots of earnest high school students.

Who will make these decisions? Good question. Well, it turns out that a committee of the German Bundestag debated the Irish austerity proposals before the Dublin government even got a chance to look at them. How did that happen? Again, good question, but no answer yet.

Maybe German Chancellor Andrea Merkel lifted O’Toole’s heart. She certainly has a motive: Merkel is leading the “austerity is good for you” charge, a stance that has battered economies from Spain to Greece. In any case, the Irish are already suspicious of the German chancellor. An anti-austerity demonstration outside the Dail, Ireland’s parliament, featured a poster calling government ministers “Angela’s Asses.”

Much of the economic crisis in Europe—and virtually all of it in Ireland— is due to the out-of-control speculation by German banks, along with the Dutch, Austrian, and French financial institutions.  “Yet it is the working people of Ireland and Europe who are being asked to pay the price,” argues Des Dalton of Sinn Fein. It appears that the Germans have discovered that one does not need Panzer divisions to conquer Europe, just bankers and compliant governments.

“Compliant,” however, has run into some difficulties in Ireland, a place where “difficulty” is a very common noun. On Mar. 2, Sinn Fein President Jerry Adams trekked out to Castlebar in the west of Ireland to resurrect the ghost of Michael Davitt, founder of the Land League and leader of the 1878 Land War (there was an earlier one from 1761 to 1784, but more on that later). Adams told the Mayo County crowd “The Irish people cannot afford this treaty.”

The Castlebar symbolism was about as heavy as you can get. Davitt, along with the great Irish Parliamentarian Charles Stewart Parnell, launched the land war from that city, calling up the words of the great revolutionary, James Fintan Lalor: “I hold and maintain that the entire soil of a country belongs by right to the entire people of that country.”

These days that is not a popular sentiment in most European capitals, where governments are shedding public ownership in everything from airlines to energy production. The Irish government is trying to sell off several lucrative holdings, including Aer Lingus, Ireland’s natural gas company, and parts of its Electricity Supply Board. The state’s forestry will be sold as well. “It is the depth of treachery to sell billions of Euros worth of State assets to pay bad gambling debts,” Socialist Party member Joe Higgins said in the Dail.

The land wars were a reaction to efforts by the English to apply to Ireland the Enclosure Acts, a policy that sold “common land” to private landowners and forced the rural population of England, Scotland and Wales into the hellishness of industrial Manchester, Birmingham, Glasgow and Liverpool.

As Laura Nader and Ugo Mattei maintain in their book “Plunder: When the rule of law is illegal,” what is currently happening in Ireland (and all over Europe) is a 21^st century version of the Enclosure Acts. The last vestiges of public ownership are being systematically auctioned to the highest bidder, and the concept of “the common good” is fading like the ghost of providence.

But not without a fight.

While Adams was resurrecting the spirit of Michael Davitt, demonstrators were besieging Parliaments in Greece, Spain and Romania.

Ireland rejected two previous European treaties, only to pass them in a second round of voting. However, under the new rules, it no longer has veto power. If 12 out of the 17 Euro Zone countries endorse—pretty much considered a slam-dunk—then the new treaty goes into effect.

A number of commentators are saying that the 12 country threshold makes the Irish referendum irrelevant, but a “no” vote will be a blow to the Euro currency, and it might eventually encourage similar “no” votes in other countries.  In that sense, the Irish tail could end up wagging the European dog.

Since Irish stories always include parallels, there is certainly one to be made between the first land war and the current debt crisis. The 1761 effort by English landlords to apply the Enclosure Acts to Ireland ignited resistance, first in Limerick, then spreading to Munster, Connacht and Leinster. Crowds of Irish tenants dressed in linen masks and coats—hence their generic name, the” Whiteboys”— burned hayricks, knocked down enclosure walls, and hamstrung cattle. On occasion they pitched land agents into the local bog.

The Irish resistance to the Enclosure Acts was not unique, but a very odd thing happened in Ireland: they won. A combination of population growth and war had driven up the price of food, so even the small-scale agriculture practiced by the Irish was profitable. Plus the rent capital skimmed off the Irish peasantry was playing an important role in helping to capitalize the English industrial revolution. Add to this the resistance, and the English decided that it was in their best interests to back off.

The average Irish tenant knew nothing about international finance or capital accumulation, but they got the idea that if you dug in your heels and went toe-to-toe with the buggers, you could beat them. It was a momentous experience, and a collective memory that would help fuel more than 150 years of rebellion.

Can the current Irish resistance movement turn the tide against the austerity madness that has gripped the European continent? Well, the Left is on the rise (in some places, so is the Right). Sinn Fein’s support in the most recent opinion polls shows a 25 percent approval ratting, up 4 percent. In comparison, Fianna Fail—the party that ushered in the current crisis—has dropped from 20 percent to 16 percent. Labor has fallen to 10 percent, and Fine Gael is at 32 percent. Other Left parties are also doing well.

Indeed, the Left seems to be resurging in other countries as well. A center-left party in Slovakia ousted a right-wing government, and France seems posted to vote socialist. The Greek Left is fractious, but its various stripes now make up a majority.

Weirdness. Remember weirdness? For starters, an 832-year-old heart is pretty strange. And it wasn’t just the heart that was snatched. Someone also stole a splinter of the “true cross” (if one added up all the splinters in all the Cathedrals of Europe you end up with a fair size forest). And then there is the matter of the cheekbone of St. Brigid that just missed getting lifted from a church in North Dublin.

In the end, saints will not preserve Ireland from an invasion of the austerity snakes. The Irish people will have to do that. But they sport an impressive track record of overturning imperial designs, and they have long memories: put enough people into the streets of Castlebar (Dublin, Cork, Waterford, Galway, Limerick, etc) and the bastards will back off.

As Adams said in Castlebar, “Stand together, stand united, and there is nothing we cannot achieve.”

—-30—

2011 Dispatches News Awards

2011 Dispatches News Awards

Dispatches From The Edge

Conn Hallinan

Jan 1 2012

Every year Dispatches From The Edge gives awards to news stories and newsmakers that fall under the category of “Are you serious?” Here are the awards for the year 2011.

The Golden Lemon Award to Lockheed Martin, the world’s biggest arms company, whose F-22 Raptor fighter has some “performance” problems: the pilots can’t breathe.

The U.S. Air Force was forced to “stand down” its fleet of 160+ F-22s—at $150 million apiece, the single most expensive fighter in the world—when pilots began experiencing “hypoxia-like symptoms” from a lack of oxygen.  But the company got right on it, according to Lockheed Martin vice president Jeff Babione, who said he was “proud to be a part” of the team that got the radar-evading aircraft back into the air—for five weeks. When pilots continued to have problems, the F-22 fleet was grounded again.

According to the Air Force, no one can figure out why oxygen is not getting to the pilots, but that pilots “would undergo physiological tests.” To see if the pilots can go without air?

Runner-up in this category is Lockheed Martins’ F-35, at $385 billion the most expensive weapon system in U.S. history. The cost of an individual F-35 has jumped from $69 million to $113 million a plane, and while this is cheaper than the F-22, the U.S. plans to eventually purchase more than 16 times the number of F-35s than F-22s. It seems the F-35 fighter has “cracks” and “hot spots” that, according to the director of the program, Vice Adm. David Venlet, are “hard to get at.”

Dispatches suggests that the Air Force issue ice packs and super glue to pilots.

 

The P.T. Barnum Award to Dennis Montgomery, a computer programmer who scammed the U.S. government for more than $20 million. Montgomery claimed he had software that could spot terrorist conspiracies hidden in broadcasts by the Qatar-based Arabic news network, Al-Jazeera. He said his program could also detect hostile submarines and identify terrorists in Predator drone videos.

The Bush administration took his claims so seriously that in December 2003 it turned back flights from Britain, France and Mexico because the software had “discovered” the planes flight information embedded in an Al Jazeera’s crawl bar. The White House, fearing the planes would be used to attack targets in the U.S., actually talked about shooting the planes down.

The CIA eventually concluded the software was a fabrication, but rather than rebuking those in charge during the hoax—Donald Kerr and George Tenet—both men got promotions. The spy agency also didn’t bother to tell anyone in the military, so in 2009 the U.S. Air Force bought the bogus software for $3 million.

 

C. Northcote Parkinson Award to the U.S. Defense Department for upholding the British sociologist’s dictum that “work expands so as to fill the time available for its completion.” Parkinson—a social scientist with a wicked sense of humor—was hired after World War II to examine the future of the Royal Navy. He concluded that, given the military’s deep love of fancy gold lace, as well as its addiction to bureaucracy, eventually there would be more admirals than ships. Needless to say, that is exactly what happened.

But it is not just the Brits who yearn for the golden epaulets. According to the Project On Government Oversight (POGO), the U.S. military is adding brass to its ranks at a record pace. While the enlisted ranks have grown by 2 percent from 2001 to 2011, three and four star generals and flag rank admirals have increased 24 percent, one and two star generals and admirals by 12 percent, and lower ranking officers by 9.5 percent.

Former Secretary of Defense Robert Gates made an attempt to cut the ranks of the top brass, but as soon as Leon Panetta took over the post, he reversed the cuts and added six more generals. In fact, at the same time as the Pentagon was cutting the enlisted ranks by 10,000 in anticipation of an end to the Iraq War, it added 2,500 officers.

According to POGO, “Today’s military is the most top-heavy force in U.S. history.” Between 2012 and 2021, POGO estimates that the six new generals Panetta appointed will cost taxpayers $14 million.

However, there may be a silver lining here. Generals and admirals don’t fight, that’s the job of enlisted men. At this rate the U.S. will run out of privates and the business of war will be left to generals and admirals. If that comes to pass, Dispatches predicts an outbreak of pacifism.

 

The Confused Priorities Award is a three-way tie between British Prime Minister David Cameron, Canadian Prime Minister Stephen Harper, and former Irish Taoiseach (prime minister) Bertie Ahern.

In the midst of a savage austerity program, with massive cutbacks in social spending, Cameron’s Conservative-Liberal government will spend up to $40 billion on a new generation of missile-firing submarines. While British Defense Secretary Liam Fox said the submarine was necessary to maintain the country’s nuclear deterrence, critics say the program is really a boondoggle for BAE Systems, the United Kingdom-based arms company that will make the new weapon system.

Canada’s Harper got into the winner’s circle by spending over $100 million on summit meetings and pork barrel projects for Conservative cabinet member Tony Clement. The summit expenditures included $13,711 for “glow sticks,” $62 million for accommodations, and $4.3 million for a temporary fence to keep Canadians away from the lake where the Group of 8 meeting took place. Half of the summit money was used to build an office building in Fraser’s district, as well as develop airports and communities that the cabinet member could take credit for. In the meantime, Harper slashed spending for health care and education, and cut $200 million from environmental protection and monitoring.

Ahern, Taoiseach of the Irish Dail from 1997 to 2008, oversaw the bank speculation and real estate bubble that destroyed Ireland’s economy in 2008. Ahern claimed that no one told him that the financial situation was so dire, although an investigation by independent analyst Rob Wright found that the Fianna Fail government had repeatedly been warned that a crash was coming. Asked what his greatest regret was, Ahern replied that it was his failure to build a stadium to match those in Arab states. “I think unfortunately when I see little countries like Qatar and Kuwait…talking about their 10 stadiums and we never succeeded in getting one national stadium. That’s an achievement I tried hard to do but I didn’t get.”

 

The White Elephant Award to the Greek Army for considering taking 400 free M1A1 Abrams tanks from the U.S. “This is a free offer,” said Greek army spokesman Yiannis Sifakis.

Well, sort of free.

The Abrams, the U.S.’s main battle tank, is a 67.6-ton behemoth that burns 10 gallons of gas just to start, and gets 1.6 gallons to the mile. The tanks will also cost $11 million to transport to Greece.

In the meantime, the Greek Socialist government has laid off tens of thousands of workers, cut wages, slashed health care, increased sales taxes, and advanced the retirement age. Massive demonstration and general strikes have convulsed major cities, and the country is on the verge of bankruptcy.

Maybe the army is thinking that if German banks try to repossess the country, those 400 Abrams tanks might come in handy (if Greece can afford to gas to run them)?

 

The Dr. Frankenstein Award to former U.S. Secretary of State Madeline Albright for her sponsorship of Kosovo Prime Minister Hashim Thaci, a man accused of murdering Serb prisoners during the 1999 Yugoslav War and selling their body parts.

Reporting on the scandal in CounterPunch, reporter Diana Johnstone, author of “Fools Crusade: Yugoslavia, NATO and Western Delusions,” cites a report by Swiss Senator Dick Marty implicating former Kosovo Liberation Army commander Thaci of running “safe houses” during the war where Serb prisoners were tortured and killed.

The Parliamentary Assembly of the Council of Europe, a human rights organization with 47 member states, sponsored the Marty investigation.

“An undetermined but apparently small number of prisoners were transferred in vans and trucks to an operating site near Tirana international airport [Albania], from which fresh organs could be flown rapidly to recipients” the Marty Report says. “Captives were killed, usually by a gunshot to the head, before being operated on to remove one of more of their organs.” Kidneys seem to have been the major harvest.

Thaci has also been linked to the heroin trade and prostitution.

Albert and her aide, the late Richard Holbrooke, pushed Thaci into the leadership of Kosovo during the Rambouillet negotiations leading up to the war. According to Johnson, far more prominent leaders of the Kosovo delegation to those talks were pushed aside, and Thaci—known in law enforcement circles as “The Snake—became the face of Albanians secession movement.

Asked about the Marty Report, U.S. State Department spokesman Phillip Crowley said the Americans would continue to work with Thaci because “any individual anywhere on the earth is innocent until proven otherwise.” Of course, it also helps that Thaci approved the construction of a massive U.S. base in Kosovo, Camp Bondsteel, giving the U.S. its first military foothold in the Balkans.

 

The Surreal Award to the U.S. Justice Department for finally agreeing that lawyers defending prisoners at Guantanamo can view classified files that were prominently displayed on the WikiLeaks website. The Department ruled that lawyers may access the documents, but cannot “download, save, print, or disseminate” the material, a ruling that attorney David Remes said was “still surreal.”

 

The Grinch Award to the International Monetary Fund (IMF) for complaining that Colombia’s minimum wage was too high, and driving up the cost of labor. The minimum wage is $1.80 an hour and, for full time workers, brings in around $300 a month.

 

The Historical Re-write Award to Jean-Francois Cope, general secretary of French President Nicolas Sarkozy’s conservative Union for Popular Movement and the man behind the “Burka Ban.”  Cope organized a recent conference on secularization that, according to French Prime Minister Francois Fillon, led to “a stigmatization of Muslims.”

Cope defended the conference as “controversial but necessary,” adding that “the values of France are like the Three Musketeers: liberty, equality, fraternity.”  Except that the Alexander Dumas novel was set in 1625, and the Musketeers were fighting for Louis XIII and the Catholic Church. “Liberty, equality, fraternity” was the slogan of the 1789 French Revolution, and was not highly thought of in the Feudal court of Bourbons.

The creative Language Award to the Obama administration for its denial that the American bombing of Libya constituted a war. It was, according to the White House, a “time-limited, scope-limited military action.”