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Report: Netanyahu May Have Leaked US Secrets to Hurt Iran Negotiations Print
Tuesday, 17 February 2015 09:20

Fisher writes: "US officials believe that Israeli Prime Minister Benjamin Netanyahu has authorized his government to release secret details of the US nuclear negotiations with Iran to the Israeli press."

Netanyahu and Obama meet in Washington in March, 2014. (photo: Andrew Harrer/Getty)
Netanyahu and Obama meet in Washington in March, 2014. (photo: Andrew Harrer/Getty)


Report: Netanyahu May Have Leaked US Secrets to Hurt Iran Negotiations

By Max Fisher, Vox

17 February 15

 

S officials believe that Israeli Prime Minister Benjamin Netanyahu has authorized his government to release secret details of the US nuclear negotiations with Iran to the Israeli press, according to Washington Post columnist David Ignatius.

The alleged leaks would appear designed to undermine the negotiations, which Israel opposes.

In response, according to Ignatius, the US has decided to "reduce the exchange of sensitive information about the Iran talks" with Israel.

This would be a major new low in the US-Israel breakdown

It is important to note that Ignatius does not detail his sources for the story, and has no official confirmation from either the Israeli or American governments. The columnist is known as a non-partisan reporter with a strong track record and close links in US intelligence agencies, so his report is so far being taken seriously.

The alleged leaks are, to be clear, not highly sensitive secrets. Rather, they are technical details of the US offers to Iran in the nuclear talks, such as the number of centrifuges that Iran would be allowed to maintain. (The details of negotiations are always kept secret while they're being hammered out, so that all parties can negotiate more freely, something Israeli negotiators have done themselves, for example in reaching the Oslo Accords.)

Ignatius' sources contend that the Israeli leaks were not only secret but misleading, releasing incomplete information in a way that would make the US position on Iran appear more generous than it actually was. Those sources also point out that Israeli media began publishing these secrets in late January, just days after Obama and Netanyahu had a contentious Jan. 12 phone call over the Iran talks. Also in that window, Netanyahu announced he would visit the US to speak to Congress on a Republican invitation, undermining the White House.

The US reaction has allegedly been to reduce intelligence sharing with Israel. "US officials believed that Netanyahu's office was the source of these reports and concluded that they couldn't be as transparent as before with the Israel leader about the secret talks," Ignatius reports.

This would be bad for everyone — including people who want a deal with Iran

It is worth reiterating that, even if Ignatius' sources are correct, both the Israeli leaks and the US withholding are limited to the American negotiating terms with Iran, an important but relatively narrow topic within the wide field of US-Israel intelligence cooperation.

Still, the US and Israel have a long and productive track record of intelligence sharing, particularly when it comes to Iran, and this would be a worrying indication of the US-Israel breakdown. That should worry everyone, and not just observers who are skeptical of an Iran deal or who believe that preserving the level of US-Israel cooperation is more important.

Some proponents of a nuclear deal with Iran may welcome this news as demonstrating that Netanyahu is a bad actor who should be sidelined from the negotiations process. But this would be misguided, and even proponents of a deal should worry about this development. One reason that Iran is willing to negotiate at all is that the US has succeeded in putting enormous pressure on the country and its nuclear program — often with crucial Israeli help. That has meant both gathering intelligence and, in cases such as the 2010 cyberattack on centrifuges via the Stuxnet virus, offensive operations.

If the US and Israel cooperate less on Iran, and the pressure on Iran drops (or Tehran believes that it is likely to drop), then Iran has less incentive to make the painful concessions necessary to strike a deal, and a final nuclear deal is thus less likely to be achieved.

We are not necessarily at that point yet. But the possibility that the US might be limiting intelligence cooperating with Israel even on the narrow topic of Iran negotiations — and that Israel could potentially take actions that would predictably force the US to do so — is a worrying sign.


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Jeb Bush in '95: We Need More For-Profit Prisons Print
Tuesday, 17 February 2015 09:18

O'Neill writes: "Jeb Bush began his political career as a firebrand soldier of the Republican Revolution."

Jeb Bush speaks at the ALEC's 40th annual meeting in Chicago, August, 2013. (photo: M. Spencer Green/AP)
Jeb Bush speaks at the ALEC's 40th annual meeting in Chicago, August, 2013. (photo: M. Spencer Green/AP)


Jeb Bush in '95: We Need More For-Profit Prisons

By Patrick Howell O'Neill, The Daily Dot

17 February 15

 

eb Bush began his political career as a firebrand soldier of the Republican Revolution.

Although he’s now widely known as the moderate Republican choice for 2016, Bush ran multiple campaigns for Florida governor while promoting the “deinvention of government” through broad privatization and the rapid shrinking of the public sector—including the transformation of the state's prison system into a for-profit industry.

Now a national candidate facing a public much more skeptical of private prisons and harsh sentencing, Bush currently supports relatively liberal criminal justice reforms and lighter sentencing laws. In the 1990s, however, he played the conservative tough-on-crime issue at top volume.

“People now cannot walk on their streets without fear of crime!" Bush said during his 1993 gubernatorial campaign. "The simple fact is we are not safe. Not in our homes, not anywhere.”

While Florida crime had just begun a 20-year decline that continues to this day, Bush spent much of the 1990s pushing to build more for-profit prisons in the Sunshine State and around the country, with the stated dual-goals of putting as many criminals in jail as possible and saving taxpayer money at the same time.

“Our criminal justice system is also an obvious target for privatization,” Bush wrote in a 1995 essay in Imprimis, an influential conservative publication. “Our prison population has doubled in recent years, and we are spending billions of dollars on prison construction and operation each year. But, according to a number of independent estimates, partial privatization could save an incredible sum—as much as 10-20 percent.”

In fact, Florida's private prisons have notoriously had trouble reaching even the state-mandated 7 percent savings at several institutions.

Across the country, evidence that private prisons deliver any savings to tax payers at all is mixed at best, according to studies by the Government Accountability Office, the National Institute of Justice, and the University of Utah—even as the industry grew rapidly in size and wealth in the 1990s and 2000s. 

They make their money in a variety of ways including running an "offender-funded" system charging mostly poor prisoners and probationers increasing fees (a "surveillance fee" for electronic bracelets sometimes put on for petty offences, for instance) that either don't exist under a public system, are paid for by the public, or are just significantly higher under a for-profit firm. 

When fees can't be paid, there's a privatized jail cell waiting even for petty offenders. That looming cell drives many offenders to commit illegal acts in order to pay fees to the companies and court, fueling a bizarre circle that in the end profits private prison firms, as a recent New Yorker article chronicled. This cycle severely undercuts the industry's public claims that the companies focus on rehabilitation of offenders.

Prison riots across the country, including in Florida, have led private prisons to be dubbed "Gladiator Schools" because the violence taking place inside them can so vastly outweigh their public counterparts. The riots have had various catalysts, including prisoner protests for better “medical [care], programs, clothes” and respect from prison officials, complaints backed up by an FBI agent.

By 2010, the Corrections Corporation of America (CCA) and the GEO Group—the country’s two largest prison companies—reported $2.9 billion in combined revenue.

Bush was hardly alone in aggressively pushing private prisons, especially as a nascent conservative during the culture wars of the '90s.

The private-prison boom came quickly in the wake of president Richard Nixon’s war on drugs. Harsher sentencing laws led to an explosion in incarceration rates and rising costs almost immediately thereafter. The U.S. now has the highest prison population on earth.

Between 1990 and 2009, private prisons took on 1,600 percent growth in prisoners, according to the federal government, due in large part to the industry spending millions of dollars on lobbying and employing hundreds of lobbyists throughout the country—including dozens in Florida alone.

On top of building for-profit prisons, Bush championed legislation that made sure the institutions were filled to capacity.

Bush boasted about his “get tough on crime” attitude on the campaign trail. When he came to office, he championed numerous landmark mandatory sentencing laws that passed early on during his first term.

In this effort, Bush was closely aligned with the goals of the private-prison lobby during his time as governor.

A little-known but widely influential organization called the American Legislative Exchange Council (ALEC) is among the country’s most ardent supporter of mandatory sentencing laws. It’s also been financially and politically supported by the prison industry’s biggest companies, some of which have been official members of the council.

ALEC writes “model legislation” advocating harsh sentencing and detention laws that its members—thousands of whom are elected officials—then introduce and pass into law around the country.

Bush pushed for and passed harsher laws, like three strikes legislation and “truth in sentencing,” that an ALEC Task Force Director bragged was “based on an ALEC model bill.”

All of these laws increase the number of prisoners, increase sentences, and increase the amount of money private prisons earn in the process.

Over the course of the last two decades, the private-prison industry has spent millions on contributions to Floridian politicians, including hundreds of thousands of dollars to the Republican party during Bush’s tenure.

While crime in Florida declined in the 1990s, Florida’s prison population doubled yet again, to nearly 80,000 prisoners as sentencing rules became harsher.

Bush’s second campaign for governor was successful and he served the office from 1999 to 2007. During that time, the same trend continued: Crime fell and Florida’s prison population rose to over 100,000 for the first time in history, half of whom were black. African Americans make up about 15 percent of the Florida population. Similar sized states like New York had reduced their prison sizes during the same period.

At the end of Bush’s tenure as governor, half of Florida’s prisoners were nonviolent drug and property offenders, according to the Sentencing Project.

While in office, Bush did soften his stance somewhat on the wholesale privatization of Florida prisons. As a political and financial battle raged between the public and private prison sectors in the state, Bush backed off privatization in some cases if it led to the loss of union jobs, a position that won him the support of the state's Police Benevolent Association.

As for shrinking government and saving money, Bush repeatedly raised spending on Florida’s corrections budget during his two terms as governor. In 2007, when Bush left office, it cost Florida over $979 million to imprison the nonviolent drug and property criminals of the state.

Florida overpaid CCA and GEO by $13 million, a 2005 audit showed, including for jobs that were never filled and maintenance that was never performed.

Both companies were paid $90 million annually despite audits showing the prisons weren't being run as efficiently as state law required, the St. Petersburg Times reported.

Nationwide, the industry's profits have gone up close to 500 percent since Bush first wrote about "deinventing government." 

Neither Bush nor Bush's spokesperson responded to our requests for comment.

The profits of private prison companies, by their own admission, rely on high incarceration rates: “The demand for our facilities and services could be adversely affected by leniency in conviction or parole standards and sentencing practices,” according to a 2010 annual report by the largest private prison company in America, the CCA.

Private prisons, which are viewed unfavorably by the American public, have been subject to especially pointed criticism in recent years.

“The evidence that private prisons provide savings compared to publicly operated facilities is highly questionable, and certain studies point to worse conditions in for-profit facilities,” according to a 2011 research paper by the American Civil Liberties Union (ACLU). “The private-prison industry helped to create the mass incarceration crisis and feeds off of this social ill. Private prisons cannot be part of the solution—economic or ethical—to the problem of mass incarceration”

As the last two decades have seen the rise of online political activism, opponents of private prisons, like the ACLU, have aggressively leveraged the Internet to spread their message.

While Bush may have made his case for private prisons in the pages of Imprimis back in 1995, the conversation has since moved online, where, videos and research on the industry have found a wide audience—a factor every 2016 hopeful must now take into consideration when exploring the things they said, and how they acted on those promises, long ago.

Although Bush is now fighting to center his image and appeal across the political aisle, his early political career gives valuable insight into the foundations of the man now campaigning for president.

“I'm a hang-'em-by-the-neck conservative," Bush said in 1984, shortly after taking his first political job campaigning for his father. Would he stand by such a line today?


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Hailed as a Model for Successful Intervention, Libya Proves to Be the Exact Opposite Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=29455"><span class="small">Glenn Greenwald, The Intercept</span></a>   
Monday, 16 February 2015 13:41

Greenwald writes: "What we see here is what we've seen over and over: the west's wars creating and empowering an endless supply of enemies, which in turn justify endless war by the west. It was the invasion of Iraq that ushered in 'Al Qaeda in Iraq' and ultimately ISIS."

Pulitzer Prize winner Glenn Greenwald. (photo: AP)
Pulitzer Prize winner Glenn Greenwald. (photo: AP)


Hailed as a Model for Successful Intervention, Libya Proves to Be the Exact Opposite

By Glenn Greenwald, The Intercept

16 February 15

 

hen Saddam Hussein was captured in 2003 by U.S. forces, Iraq War advocates boastfully celebrated the event as proof that they were right and used it to mock war opponents (Joe Lieberman and John Kerry, for instance, gleefully exploited the event to demand that Howard Dean admit his war opposition was wrong). When Muammar Gaddafi was forced by NATO bombing in August, 2011 to flee Tripoli, advocates of U.S. intervention played the same game (ThinkProgress gleefully exploited the occasion to try to shame those who objected to the illegality of Obama’s waging the war even after Congress voted against its authorization: as though Gadaffi’s fleeing could render legal Obama’s plainly illegal intervention).

Once Gadaffi was brutally killed by a mob, advocates of intervention threw a giddy party for themselves, celebrating their own rightness and righteousness and declaring Libya a model for future western interventions. Upon Gadaffi’s fleeing, The New York Times, which editorially supported the war, published a front-page article declaring: “U.S. Tactics in Libya May be a Model for Other Efforts.” While acknowledging that “it would be premature to call the war in Libya a complete success for United States interests,” the paper noted that events had given “Obama’s senior advisers a chance to claim a key victory for an Obama doctrine for the Middle East that had been roundly criticized in recent months as leading from behind.”

Leading war advocates such as Anne-Marie Slaughter and Nick Kristof celebrated themselves as humanitarian visionaries and chided war opponents for being blinkered and overly cynical about the virtues of American force. British and French leaders descended upon Libya to strut around like some sort of conquering heroes, while American and Canadian officials held pompous war victory ceremonies. Hillary Clinton was downright sociopathic, gloating and cackling in an interview when told about Gadaffi’s death by mob: “We came, we saw, he died.” Democratic partisans were drowning in similar bravado (“Unlike the all-hat-no-cattle types we are increasingly seeing over there, [Obama] may take his time, but he does seem to get his man”).

From the start, it was glaringly obvious that all of this was, at best, wildly premature. As I wrote the day after Gadaffi fled, the Democratic claims of vindication were redolent in all sorts of ways of war hawk boasting after Saddam was captured, and was just as irrational: “the real toll of this war (including the number of civilian deaths that have occurred and will occur) is still almost entirely unknown, and none of the arguments against the war (least of all the legal ones) are remotely resolved by yesterday’s events.”

Since 2011, Libya has rapidly unraveled in much the way Iraq did following that invasion: swamped by militia rule, factional warfare, economic devastation, and complete lawlessness. And to their eternal shame, most self-proclaimed “humanitarians” who advocated the Libya intervention completely ignored the country once the fun parts – the war victory dances and mocking of war opponents – were over. The feel-good “humanitarianism” of war advocates, as usual, extended only to the cheering from a safe distance as bombs dropped.

The unraveling of Libya is now close to absolute. Yesterday, the same New York Times editorial page that supported the intervention quoted the U.N.’s Libya envoy Bernardino León as observing: “Libya is falling apart. Politically, financially, the economic situation is disastrous.” The NYT editors forgot to mention that they supported the intervention, but did note that “Libya’s unraveling has received comparatively little attention over the past few months.” In other words, the very same NATO countries that dropped bombs on Libya in order to remove its government collectively ignored the aftermath once their self-celebrations were over.

Into the void of Libya’s predictable disintegration has stepped ISIS, among other groups. ISIS yesterday released a new video showing the beheading of 21 Egyptian Coptic Christians, which they carried out in Libya. This, in turn, led to all sorts of dire warnings about how close ISIS now is to Europe – it “established a direct affiliate less than 500 miles (800 kilometers) from the southern tip of Italy,” warned AP – which in turn has produced calls for re-intervention in Libya.

Yesterday, the U.S.-supported Egyptian regime bombed targets in Libya. Meanwhile, “Italy warned that ISIS is at Europe’s doorstep as France and Egypt called for the United Nations Security Council to meet over the spiraling crisis in Libya.” It’s only a matter of time before another western “intervention” in Libya becomes conventional wisdom, with those opposed being accused of harboring sympathy for ISIS (just as opponents of Libya intervention the first time around were accused of being indifferent to Gadaffi’s repression).

What we see here is what we’ve seen over and over: the west’s wars creating and empowering an endless supply of enemies, which in turn justify endless war by the west. It was the invasion of Iraq that ushered in “Al Qaeda in Iraq” and ultimately ISIS. It has been the brutal, civilian-slaughtering drone bombing of Yemen which spawned Al Qaeda in the Arabian Peninsula in that country. As Hillary Clinton herself acknowledged, the U.S. helped create Al Qaeda itself by arming, recruiting and funding foreign “Mujahideen” to fight the Soviet invasion of Afghanistan (“the people we are fighting today, we funded 20 years ago”). And now it is the NATO intervention in Libya which has laid the groundwork for further intervention.

That the U.S. would end up intervening in Libya again as a result of the first intervention was painfully obvious. A primary argument of intervention opponents was that the same destruction sown in Iraq from “regime change” would be sown in Libya, and that the U.S. would end up empowering factions that it would later claim it was “obligated” to fight. In October, 2012, as Libya was disintegrating, I wrote:

Rather obviously, this was yet another example of the “Mission Accomplished” banner being waved quite prematurely. How many times does it need be proven that merely killing a dictator does not remotely guarantee an improvement from either the perspective of US interests or the people in the country being invaded? And how many more examples do we need where the US funds and arms a fighting force to do its bidding, only to turn around and find that it now must fight that same force?

One can debate whether all of this is done by design or by “accident”: if you realize that U.S. actions create further pretexts for war, then those who do this for a living must realize it, too (their own studies say this); and how many times does something have to happen before “accident” is no longer a viable explanation (as in: oops, our bombing policies keep killing large numbers of civilians, but we keep doing it anyway, and keep claiming it’s all just a terrible “accident”)? But whatever else is true about motive, there is no question that U.S. militarism constantly strengthens exactly that which it is pitched as trying to prevent, and ensures that the U.S. government never loses its supply of reasons to continue its endless war.

Far from serving as a model, this Libya intervention should severely discredit the core selling point of so-called “humanitarian wars.” Some non-governmental advocates of “humanitarian war” may be motivated by the noble aims they invoke, but humanitarianism is simply not why governments fight wars; that is just the pretty wrapping used to sell them.

Finally, Democrats (with validity) love to demand that Iraq War advocates acknowledge their errors and be discredited for their position (unless those advocates happen to be Obama’s Vice President, his two Secretaries of State, his Pentagon chiefs, etc.). We are rapidly approaching the point, if we are not there already, where advocates of “intervention” in Libya should do the same.


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Brian Williams and the Little Lies That Sink News Stars Print
Monday, 16 February 2015 13:35

Cockburn writes: "The arrival of anchors, editors or 'celebrity' correspondents in the middle of a crisis, war, or at any other time, has always been the bane of reporters on the ground."

NBC Nightly News anchor Brian Williams visits with US Special Forces in Afghanistan (photo: Subrata De/NBC)
NBC Nightly News anchor Brian Williams visits with US Special Forces in Afghanistan (photo: Subrata De/NBC)


Brian Williams and the Little Lies That Sink News Stars

By Patrick Cockburn, CounterPunch

16 February 15

 

he exposure of fake or exaggerated tales of journalistic derring-do by Brian Williams, the anchor of NBC Nightly News now suspended without pay, will ignite a small glow of satisfaction in the breasts of many foreign correspondents. The arrival of anchors, editors or “celebrity” correspondents in the middle of a crisis, war, or at any other time, has always been the bane of reporters on the ground. I remember a friend on Time magazine, in the days when it was a power in the land 40 years ago, vainly trying to explain to his bosses why he was having difficulty arranging their fact-finding tour of Kuwait in the middle of Ramadan.

Williams’s credibility first began to disintegrate when he was challenged on his claim that he had been in a Chinook helicopter that was hit by a rocket-propelled grenade in the Iraq War of 2003. In fact, the missile hit a Chinook flying half an hour ahead of his own. But he wasn’t the only journalist to be carried away by the idea that his life was in imminent danger at that time. I was then in Irbil, the Kurdish capital, and used to enjoy visiting a hotel called, so far as I recall, the Irbil Tower. Fox News was based on an upper floor of the hotel, the entrance to which, opposite the lift, was protected by a sandbag emplacement though not a shot was fired in Irbil during the conflict. In fact, the Fox team really was in some danger – a nervous receptionist at the front desk told me – because the weight of the sandbags was such that it might lead to the collapse of the shoddily built hotel.

Journalists very seldom lie about their war exploits, because, among other reasons, they are likely to be exposed by their colleagues. Usually, there is no reason to lie because almost any story can be given an appearance of truthfulness by judicious selection of the facts. My father, Claud Cockburn, an author and journalist, got into trouble for attacking what he called “the heresy of the facts”, making the point that there are not a finite number of facts lying around like nuggets of gold ore in the Yukon until they are picked up by some journalistic prospector. He argued that, on the contrary, there are an infinite number of facts and it is the judgement of the journalist that decides which are significant or insignificant. He explained that, in a sense, all stories are written backwards, beginning with the writer’s “take” on what matters and only then proceeding to a search for facts that he or she judges to be important. All this seemed to my father to be a matter of common sense, and he was taken aback to be criticised for confusing decent truth-loving reporters with black-hearted propagandists who make up stories.

Of course, some stories are faked, such as the one in 1990 about babies in a Kuwait hospital being tipped out of incubators by invading Iraqi soldiers and left to die on the floor. But a good propagandist or even a journalist looking for a good story does not have to fabricate; a selective approach to the facts is all that is needed. I remember going to Libya in the early 1990s when there was some prospect of a US invasion. Absolutely nothing was happening and the scores of journalists who had arrived on the same mission as myself waited impatiently until they could go home.

Instead, we all got irritated calls from our offices one morning saying that a well-known paper had an article reporting, to the effect that, “Libya girds itself for war”. The author cited sandbags outside government ministries and diplomats reporting tank traps being dug at the top of beaches. Editors asked why we had missed the story reported by our intrepid colleague. True enough, there were sandbags but they had been there for months. I went with a friend from the LA Times to the Justice Ministry and a couple of dozy guards waved us through. Inside, we found nobody apart from a gardener who said the minister was asleep at home and offered us his address.

The “tank trap” element of the story was more difficult to deflate. The Libyan coast is 1,100 miles long. We went to see a senior Italian diplomat with a reputation for being highly informed who poured scorn on the idea of Libya preparing for war. But he then admitted, with some embarrassment, that he himself might have been the source of the tale about beach-top fortifications being under construction. He explained that the journalist, whose article had caused the fuss, had come to see him and asked about Libyan fortifications. The diplomat had responded that he had just been to the beach with his children and they had seen some bulldozers working there. “Perhaps they were digging tank traps,” he had joked.

What is striking about the Brian Williams debacle, and the exposure of other self-regarding tales for which the media occasionally berate themselves, is their triviality. Television, newspapers and radio seldom indulge in truly damaging self-criticism over false stories that precipitated unjust wars or get a lot of people killed. The New York Times published numerous pieces before and after the US invasion of Iraq in 2003 falsely claiming proof that Saddam Hussein possessed or was building weapons of mass destruction. The New Yorker ran a false but highly influential story based on the evidence of a gunman who was prisoner of the Kurds claiming that Iraqi officials were working with al-Qaeda militants.

The reasons why media confessions of culpability tend to focus on minor sins is obvious. Persistent self-laceration over serious crimes of misreporting would cause real damage to a publication’s or television channel’s credibility while a deftly handled apology may enhance it. Thus The New York Times devoted two pages to a blow by blow account of plagiarism and misreporting by Jayson Blair in 2003 that damaged nobody, but it was May 2004 before The New York Times’ editors’ critique of their paper’s WMD coverage appeared – and was buried on page 10. It is worth re-reading The New York Times’s public editor’s acerbic comment on the affair saying that some “stories pushed Pentagon assertions so aggressively you could almost sense epaulets sprouting on the shoulders of the editors”. Glad that doesn’t happen any more.

The same public editor rightly typifies anonymous sources as “a licence granted to liars” but does not explain why there is such uncritical reliance on such sources: it is simply that journalists are not very well equipped to find out the truth. In movies bad people blub and confess their sins or admit to crimes that might land them in jail. In reality, wrongdoers have too much sense to do anything of the sort. Successful investigation without legal powers is extraordinarily difficult. Hence the reliance on officially inspired “leaks”. Brian Williams’s vainglorious boasting looks likes destroying his career, but those who purvey the most destructive lies in the media will seldom be identified or punished.


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FOCUS | Greece Leads with Keynes, not Marx Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=5494"><span class="small">Steve Weissman, Reader Supported News</span></a>   
Monday, 16 February 2015 12:12

Weissman writes: "Re-negotiating the Greek debt and bailout often seems surreal, especially when the country's new finance minister Yanis Varoufakis plays the wild man."

Yanis Varoufakis. (photo: IBTimes)
Yanis Varoufakis. (photo: IBTimes)


Greece Leads with Keynes, not Marx

By Steve Weissman, Reader Supported News

16 February 15

 

e-negotiating the Greek debt and bailout often seems surreal, especially when the country’s new finance minister Yanis Varoufakis plays the wild man. An internationally recognized expert in game theory and self-described “libertarian Marxist,” the purposely provocative Varoufakis gets right in the face of the European mandarins. They are, he says, little different from old-fashioned Soviet apparatchiks, refusing to acknowledge facts that do not fit with their received orthodoxy, which – in response to the global economic meltdown that began in 2008 – has become austerity über alles.

“A clueless political personnel, in denial of the systemic nature of the crisis,” he says, “is pursuing policies akin to carpet-bombing the economy of proud European nations in order to save them.”

Imposed by Germany’s Angela Merkel and the troika – the European Union (EU), European Central Bank (ECB), and International Monetary Fund (IMF) – the earlier bailout agreement that the previous Greek government accepted and that Varoufakis and the Syriza-led government of Alexis Tsipras now want to renegotiate provided money primarily to pay back French, German, and other European banks that had lent to the Greeks. But the bailout brought with it austerity measures that devastated the Greek economy, stifled growth, cut the social safety net, forced the sell-off and privatization of valuable assets, and put more than a quarter of the workforce out of work. This is “the carpet-bombing” Syriza now rejects – not just for Greece, but for all of Europe.

To be clear, let me highlight the obvious. In their rejection of austerity, Varoufakis and Tsipras are in no way calling for a Marxist revolution. They are not even trying to seriously restrain the capitalists who created the global crisis and continue to profit from it. Instead, they are following in the decidedly reformist footsteps of the British economist Lord John Maynard Keynes, “an enemy of the Left” who “worked hard and cleverly in order to come up with ideas that would allow capitalism to survive against its own propensity for, potentially, deadly spasms.”

That is how Varoufakis described Lord Keynes back in May 2013, when the Greek economist keynoted the 6th “Subversive Festival” in Zagreb. In his speech, Varoufakis offered a very personal insight into his thinking, including his attraction to Keynesian economics and its use of deficit financing to promote growth and create jobs. He called his exegesis “Confessions of an Erratic Marxist,” which he later expanded and continues to feature on his blog.

The economic crisis “puts radicals in a terrible dilemma,” he sums up his argument. “Should we use this once-in-a-century capitalist crisis as an opportunity for the dismantling of the European Union, given the latter’s enthusiastic acquiescence to the neoliberal policies and creed? Or should we accept that the Left is not ready for radical change and campaign instead for stabilizing European capitalism?”

For better or worse, Varoufakis has chosen the second alternative, as has his prime minister Alexis Tsipras, a former Marxist youth leader. “It is the Left’s historical duty, at this particular juncture, to stabilize capitalism,” says Varoufakis, “to save European capitalism from itself and from the inane handlers of the Eurozone’s inevitable crisis.”

Varoufakis fears that continuing austerity will unleash “radically repressive forces” like Greece’s neo-Nazi Golden Dawn that would “cause a humanitarian bloodbath while extinguishing the hope for any progressive moves for generations to come.”

But what if the troika and other guardians of European capitalism choose not to be saved? What if austerity remains the rule? Will there be a humanitarian bloodbath? Domino theories rarely play out as predicted, but what happens in Brussels in the next few weeks will surely affect how much support Spanish voters give to the anti-austerity Podemos party, which has openly allied itself with Tsipras and Syriza. The negotiations will similarly influence the prospects for anti-austerity protestors in Portugal and Italy, the prospects of Euro-Skeptics on the left and right throughout Europe, and the future of the Euro and European Union.

Much of the world’s smart money is betting that the negotiations will fail. It’s “just a matter of time” before Greece drops out of the Euro, former Federal Reserve chairman Alan Greenspan told the BBC. “All the cards are being held by members of the Eurozone.”

A longtime critic of the single currency, Greenspan also sees the real risk of a “much bigger break-up” with other southern European countries forced out, triggering the eventual collapse of the single currency and severe shock to the European Union.

One other threat needs to be considered. If Europe fails to help Greece and sticks with austerity, even with the too-little, too-late loosening that the European Commission’s Jean-Claude Juncker now seems to favor, Tsipras has indicated that he may seek financial aid from Vladimir Putin’s Russia. If the troika’s refusal to face facts and Greece’s need for economic survival push the left-wing Greeks to align themselves with a right-wing, Christian nationalist Russia, the stakes could be higher than any of the current players expect. At a minimum, the alignment would radically alter the fight against austerity, the future of sanctions, and the new Cold War that supporters of Hillary Clinton and their neocon fellow travelers are now pushing.



A veteran of the Berkeley Free Speech Movement and the New Left monthly Ramparts, Steve Weissman lived for many years in London, working as a magazine writer and television producer. He now lives and works in France, where he is researching a new book, "Big Money and the Corporate State: How Global Banks, Corporations, and Speculators Rule and How to Nonviolently Break Their Hold."

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.

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