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Obama's True Foreign-Policy 'Weakness' Print
Tuesday, 24 June 2014 15:07

Parry writes: "A favorite neocon meme about President Barack Obama is that he is 'weak' - because he failed to bomb Syria, bomb Iran, sustain the U.S. occupation of Iraq and start a full-scale economic war with Russia over Ukraine. But an alternate way of looking at Obama is that he is weak because he has failed to face down the neocons."

Obama has failed to challenge neocons like Robert Kagen. (photo: Brookings Institute)
Obama has failed to challenge neocons like Robert Kagen. (photo: Brookings Institute)


Obama's True Foreign-Policy 'Weakness'

By Robert Parry, Consortium News

24 June 14

 

favorite neocon meme about President Barack Obama is that he is “weak” – because he failed to bomb Syria, bomb Iran, sustain the U.S. occupation of Iraq and start a full-scale economic war with Russia over Ukraine. But an alternate way of looking at Obama is that he is weak because he has failed to face down the neocons.

Since the start of his presidency, Obama has let the neocons and their “liberal interventionist” allies push him into militaristic and confrontational policies – even as he is criticized for not being militaristic and confrontational enough. There was the futile “surge” in Afghanistan, the chaotic “regime change” in Libya, excessive hostility toward Iran, intemperate demands for “regime change” in Syria, and hyperbolic denunciations of Russia for its reaction to U.S.-backed “regime change” in Ukraine.

The end result of all this U.S. “tough-guy/gal-ism” has been to get a lot of people killed without actually improving the lot of the people in the countries where the neocon-driven policies have been applied. In each of those cases, a more pragmatic approach to the political and strategic concerns represented by those crises could have saved lives and averted economic pain that only has fed more disorder.

Yet, Obama remains hypersensitive to criticism from well-placed and well-connected neocons. As the New York Times reported on June 16, Obama shaped his foreign policy speech at the West Point graduation in May to deflect criticism from a single neocon, Robert Kagan, who had penned a long and pedantic essay in The New Republic urging the projection of more U.S. power around the world.

In the essay, “Superpowers Don’t Get to Retire,” Kagan “depicted President Obama as presiding over an inward turn by the United States that threatened the global order and broke with more than 70 years of American presidents and precedence,” wrote the Times’ Jason Horowitz. “He called for Mr. Obama to resist a popular pull toward making the United States a nation without larger responsibilities, and to reassume the more muscular approach to the world out of vogue in Washington since the war in Iraq drained the country of its appetite for intervention.”

As part of Obama’s effort to deflect this neocon critique, “the president even invited Mr. Kagan to lunch to compare world views,” Horowitz reported.

Kagan apparently sees himself as a vanguard for a new wave of U.S. interventionism, teamed up with his brother Frederick who devised the two “surges” in Iraq in 2007 and Afghanistan in 2009. Robert Kagan is also married to Victoria Nuland, the assistant secretary of state for European affairs who helped promote the February “regime change” in Ukraine.

According to the Times article, the husband-and-wife team share both a common world view and professional ambitions, Nuland editing Kagan’s articles and Kagan “not permitted to use any official information he overhears or picks up around the house” – a suggestion that Kagan’s thinking at least may be informed by foreign policy secrets passed on by his wife.

Though Nuland wouldn’t comment specifically on Kagan’s attack on President Obama, she indicated that she holds similar views. “But suffice to say,” Nuland said, “that nothing goes out of the house that I don’t think is worthy of his talents. Let’s put it that way.”

Counting on Hillary Clinton

Kagan also has hopes that his neocon views – which he prefers to call “liberal interventionist” – will have an even stronger standing in a possible Hillary Clinton administration. After all, not only did Secretary of State Clinton promote his wife, Clinton also named Kagan to one of her State Department advisory boards.

According to the Times’ article, Clinton “remains the vessel into which many interventionists are pouring their hopes.” Kagan is quoted as saying: “I feel comfortable with her on foreign policy. … If she pursues a policy which we think she will pursue … it’s something that might have been called neocon, but clearly her supporters are not going to call it that; they are going to call it something else.”

Though Obama personally advocates a more multilateral approach to foreign policy – including ”leading from behind” as one aide famously explained – the President allowed the neocons to retain great influence inside his own administration.

After winning the election in 2008, he opted for a “team of rivals” approach that put the hawkish Hillary Clinton at State, retained Republican Defense Secretary Robert Gates and kept George W. Bush’s high command, including neocon-favorite Gen. David Petraeus.

That fateful decision meant Obama never asserted personal control over his foreign policy, in part, because Gates, Petraeus and Clinton formed a kind of iron triangle to promote neocon strategies. In his memoir Duty, Gates said he and Clinton agreed on most issues and could push them in the face of White House opposition because “we were both seen as ‘un-fireable.’”

For instance, they teamed up in support of the ill-conceived Afghan “surge” of 2009 – which was devised by neocon theorist Frederick Kagan who sold this “counterinsurgency” plan to Gates. The “surge” led to another 1,000 or so U.S. deaths and many more Afghans killed without changing the trajectory of that ill-fated war. [See Consortiumnews.com’s “Is Hillary Clinton a Neocon-Lite?”]

The neocons and “liberal interventionists” carried the day on other key policy decisions, such as the U.S.-supported bombing campaign over Libya in 2011. The aerial bombardments broke the back of Muammar Gaddafi’s security forces but also shattered the country’s political cohesion. After Gaddafi was ousted and murdered, radical jihadists seized control over much of the country (and killed four American diplomatic personnel in Benghazi).

At other points, Obama bought into the neocon narrative but dragged his heels about following their policy prescriptions. In Syria, Obama talked tough, saying President Bashar al-Assad “must go” and pushed the interventionist notion of helping “moderate” rebels, but Obama limited the U.S. role after recognizing that the Sunni-dominated insurgents had veered increasingly into radicalism.

Obama’s middling approach provoked heavy criticism from the neocons and the “liberal interventionists” who wanted him to intervene more aggressively in Syria by sending sophisticated weaponry to the “moderate rebels.” Obama also was excoriated for not launching a massive bombing campaign to destroy Assad’s military after a disputed chemical weapons incident outside Damascus last summer.

Turning to Putin

Instead, Obama accepted help from Russia’s President Vladimir Putin to defuse the Syrian crisis by getting Assad to surrender his chemical weapons. But Obama’s halfway approach wouldn’t let him challenge administration hawks who treated Geneva negotiations for a Syrian political settlement as just another excuse to demand Assad’s departure.

Yet, based on this month’s elections, which Assad won handily, the Syrian president appears to retain a substantial base of support among Alawites, Shiites, Christians and other minorities as well as some secular Sunnis. Many Syrians seem to view Assad as the bulwark against a victory by radical Sunni jihadists who have flocked to Syria from around the Middle East with funding from Saudi Arabia, Kuwait and other Persian Gulf states.

But Robert Kagan and the neocons see a new vulnerability for Obama now that the Sunni-jihadist war in Syria has spilled back into Iraq where an al-Qaeda spinoff, the Islamic State of Iraq and Syria, first emerged in reaction to President Bush’s neocon-inspired invasion in 2003. ISIS is spearheading an offensive that has routed the U.S.-supplied Iraqi army from key cities in the country’s north and west.

Referring to Obama’s completion of the U.S. military withdrawal in 2011 and his tepid response to the Syrian civil war, Kagan told the Times that “It’s striking how two policies driven by the same desire to avoid the use of a military power are now converging to create this burgeoning disaster.”

The neocons are also apoplectic about the prospect of the Obama administration cooperating with Shiite-ruled Iran to bolster the Shiite-led government of Iraq. The neocons, along with Israel and Saudi Arabia, consider Iran their top enemy in the Middle East.

For years, the neocons have been hyping the threat of Iran’s nuclear program as a rationalization to bomb Iran. They have been rooting for negotiations that would constrain Iran’s nuclear ambitions to fail so the route to war would be opened, much as Israel’s Prime Minister Benjamin Netanyahu wants.

Since Russian President Putin helped avert a U.S. war against Syria and cooperated on negotiations for limiting Iran’s nuclear program, he now has emerged as the neocons’ most dangerous adversary on the global stage. And last year, the neocons quickly identified a Putin vulnerability in Ukraine.

Prominent neocons – including National Endowment for Democracy President Carl Gershman, Assistant Secretary of State for European Affairs Victoria Nuland and Sen. John McCain – were at the forefront of agitation in Ukraine to overthrow the elected President Viktor Yanukovych and install a rightist regime hostile both to Russia and to Ukraine’s large ethnic Russian population.

The Feb. 22 coup in Kiev – and subsequent anti-Russian actions by the coup regime – prompted the regional authorities in Crimea to hold a referendum seceding from Ukraine and rejoining Russia, a move that Putin supported.

Crimea’s secession prompted hysteria across Official Washington, which billed the move as “Russian aggression.” As the rest of Ukraine descended into a nasty civil war, the neocons pushed for a new Cold War against Russia, including broad economic sanctions designed to undermine Putin by destabilizing nuclear-armed Russia. [See Consortiumnews.com’s “What Neocons Want from Ukraine Crisis.”]

‘Chaos Promotion’

The neocons and the “liberal interventionists,” of course, couch all this chaos promotion as “democracy promotion,” even when their efforts involve overthrowing democratically elected leaders, like Yanukovych, and ignoring the will of the people, such as denying the desire of the Crimean people to escape the failed state of Ukraine and rejoin Russia. It seems elections are only valid when they come out the way the U.S. government prefers; otherwise, the elections are deemed “rigged.”

These U.S. interventionists also talk about respect for international law except when the rules get in their way, such as when they launched the aggressive war against Iraq in 2003, a crime against peace that unleashed havoc and death across Iraq and now much of the Middle East.

This neocon mindset can best be understood as an intellectual outgrowth of the 1990s when the United States emerged as the sole superpower and U.S. military technology advanced to levels beyond the capabilities of any other nation.

Many neocons viewed this moment as a unique opportunity for Israel to move beyond frustrating negotiations with the Palestinians over peace and to dictate whatever terms it wished. The new watchword would be “regime change” against any country that presented a threat to Israel or that supported Israel’s near-in enemies, Palestine’s Hamas and Lebanon’s Hezbollah. Once the Mideast was remade to isolate Hamas and Hezbollah, Israel could do – or take – whatever it wanted.

This neocon strategy first surfaced in 1996 when leading American neocons, such as Richard Perle and Douglas Feith, went to work for Netanyahu’s campaign for prime minister. The U.S. neocons formalized their bold new plan in a strategy paper called “A Clean Break: A New Strategy for Securing the Realm.” The paper argued that only “regime change” in hostile Muslim countries could achieve the necessary “clean break” from the diplomatic standoffs that had followed inconclusive Israeli-Palestinian peace talks.

By 1998, the neocon-organized Project for the New American Century – with Robert Kagan as one of the co-founders – had targeted Iraq as the first Israeli enemy that would face “regime change,” a strategy that became feasible once neocon-backed President George W. Bush took office in 2001 and after the 9/11 attacks generated a U.S. hunger for revenge against Arabs, even if against the wrong Arabs.

There was, of course, the need for a misleading sales job to snooker the American people. So, we were given the fiction of Iraq’s weapons of mass destruction and the lie about Iraq’s Saddam Hussein teaming up with al-Qaeda’s Osama bin Laden, when the two were the bitterest of enemies, Hussein leading a secular Arab government and bin Laden representing a fundamentalist Islamic movement.

The neocon thinking apparently was that once the U.S. military won a smashing victory, the American people wouldn’t really care about the excuses used to justify the war; they’d just be swept up in the excitement. But the bloody low-tech war that Iraqis fought against their foreign occupiers soured the American mood — and the absence of any WMD stockpiles angered much of the public.

Over the ensuing decade, the neocons have fought what amounts to a rear-guard action against their critics, a kind of strategic retreat with many key neocon operatives withdrawing to prominent think tanks (Kagan is at the Brookings Institution) and to important op-ed pages (Kagan has been a columnist at the Washington Post) while others (like Victoria Nuland) have behaved as a stay-behind force inside the government bureaucracy.

A Neocon Revival

Now, counting on the notoriously short memories of Americans and on the sympathy of the mainstream U.S. media (which also was complicit in Bush’s Iraq invasion), the neocons are reemerging from their secure positions and mounting a counterattack against Obama, whom they identify as not being one of them, but rather a “realist” who is not averse to collaborating with Russia or Iran in the cause of achieving peace or reducing tensions.

The neocons appear to have Obama on the run, having strategically cut him off from his erstwhile ally Putin because of the Ukraine crisis and having tactically seized the high ground of the mainstream media to blast away at Obama over the Iraq crisis.

The neocons, after all, are skilled at the art of propaganda and “information warfare.” Indeed, I first met Robert Kagan when he was working as a propagandist in President Ronald Reagan’s Office of Public Diplomacy for Latin America. Kagan was in charge of palming off propaganda “themes” about Central America on a gullible Washington press corps.

As a correspondent for the Associated Press and Newsweek, I dealt frequently with Kagan’s office and annoyed him and his team by subjecting their “themes” to scrutiny and often revealing them to be either disinformation or hyperbole.

For instance, one of the “themes” in late 1987 was to promote the claims of a Nicaraguan defector that the Sandinista government was building up an army for offensive purposes when the effort was clearly defensive, i.e., to resist U.S. aggression. At a Pentagon briefing, a senior Defense Department official elaborated on the supposed Sandinista threat by warning that there was nothing to stop the Sandinista army from marching through Costa Rica and capturing the Panama Canal.

While my journalistic colleagues dutifully took notes, I raised my hand and impertinently asked whether “the 82nd Airborne might not show up?”

It was in response to my lack of “team play” that Kagan took me aside one day with a warning that if I continued with such behavior, I would have to be “controversialized,” a process that involved having administration officials and pro-Reagan activists make me a special target for criticism and attack, which subsequently did happen.

A Skilled Propagandist

To this day, Kagan remains a skilled propagandist, casting current events in ways most favorable to the neocon cause. For instance, in his New Republic essay, he portrays the complex case of Ukraine, where his wife played a central role, in the most simplistic terms, ignoring the right-wing coup in Kiev that overthrew an elected president and the overwhelming vote for secession in Crimea where thousands of Russian troops were already stationed under an agreement with Ukraine.

Stripping away all the nuance, Kagan simply wrote: “the signs of the global order breaking down are all around us. Russia’s invasion of Ukraine and seizure of Crimea was the first time since World War II that a nation in Europe had engaged in territorial conquest.”

Next, ignoring the fact that the U.S. intelligence community has concluded that Iran is not working on a nuclear bomb and leaving out that Israel is the one nation in the Middle East that has covertly amassed a nuclear arsenal, Kagan added: “If Iran manages to acquire a nuclear weapon, it will likely lead other powers in the region to do the same, effectively undoing the nonproliferation regime, which, along with American power, has managed to keep the number of nuclear-armed powers limited over the past half century.”

Apparently forgetting his own role and that of the neocons in launching an aggressive war against Iraq and provoking the Shiite-Sunni sectarian conflict that is ripping apart the Muslim world, Kagan added: “If these trends continue, in the near future we are likely to see increasing conflict [and] greater ethnic and sectarian violence.”

Kagan follows with a litany of alarmist warnings on par with the notion that the Sandinistas were about to march south and capture the Panama Canal in 1987 — and reminiscent of the neocon claims that Saddam Hussein was about to launch remote-controlled planes to spray the U.S. mainland with chemical weapons in 2003.

Here is how Robert Kagan, Hillary Clinton’s adviser and Barack Obama’s lunch partner, portrayed the emerging apocalypse: “Could the United States survive if Syria remains under the control of Assad or, more likely, disintegrates into a chaos of territories, some of which will be controlled by jihadi terrorists? Could it survive if Iran acquires a nuclear weapon, and if in turn Saudi Arabia, Turkey, and Egypt acquire nuclear weapons? Or if North Korea launches a war on the South?

“Could it survive in a world where China dominates much of East Asia, or where China and Japan resume their old conflict? Could it survive in a world where Russia dominates Eastern Europe, including not only Ukraine but the Baltic states and perhaps even Poland? Of course it could. From the point of view of strict ‘necessity’ and narrow national interest, the United States could survive all of this. It could trade with a dominant China and work out a modus vivendi with a restored Russian empire.

“Those alarmed by such developments will be hard-pressed … to explain how each marginal setback would affect the parochial interests of the average American. As in the past, Americans will be among the last to suffer grievously from a breakdown of world order. And by the time they do feel the effects, it may be very late in the day.”

A Path Toward Peace

There is, of course, a more realistic and less hysterical way of viewing these global situations.

If Obama could work with world leaders to stop Saudi Arabia and other Sunni oil sheikdoms from funding Sunni extremists in Syria, a peace settlement could be worked out that might have Assad remaining in power for some transitional period. The neocon preference — to expand the Syrian civil war by having the U.S. intervene on the side of the mythical Syrian “moderates” – is much more likely to lead precisely to what Kagan fears, an expansion of jihadist terror.

If Obama would jettison the neocon narrative about “Russian aggression” in Ukraine – when it’s clear that Putin was reacting defensively to Western intervention, not plotting to reassert the Russian empire – a peaceful resolution of that crisis would be fairly easy to achieve along the lines of a cease-fire plan unveiled by Ukraine’s new President Petro Poroshenko and endorsed by Putin.

The neocon notion that Russia is on the march to conquer the Baltic states is unsupported by any intelligence or other evidence. Russia’s annexation of Crimea resulted from a unique set of circumstances, including the U.S.-backed overthrow of the elected Ukrainian president and a popular referendum in Crimea seeking membership in the Russian Federation. It is nutty to suggest that it was some template for a grander “Russian imperialism.”

Indeed, Kagan is not only spinning conspiracy fantasies but – as often is the case with neocons – he is promoting schemes that could facilitate the outcome that he professes to abhor. Possibly the fastest way for the United States to lose its leadership role in the world is through overextension of its global power and overspending on its military might.

The more that Kagan and other neocons push for U.S. suppression of any imaginable threat to U.S. supremacy the more certain it is that America will slide into a precipitous decline – and the more dangerous that collapse may be both for Americans and the rest of the world.

President Obama seems to recognize this reality in his inclination to cooperate with Putin and other leaders to resolve crises, but Obama lacks the nerve to finally stand up to the neocons. That is his true “weakness.”

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Family-Friendly Workplace Policies Are Not Frills - They're Basic Needs Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=28172"><span class="small">Barack Obama, Reader Supported News</span></a>   
Tuesday, 24 June 2014 15:03

Obama writes: "Family leave, childcare, flexibility and a decent wage aren't frills. They're basic needs. They shouldn't be bonuses - they should be the bottom line."

President Barack Obama mimics someone handing him a baby as he speaks Monday at The White House Summit on Working Families in Washington. (photo: Charles Dharapak/AP)
President Barack Obama mimics someone handing him a baby as he speaks Monday at The White House Summit on Working Families in Washington. (photo: Charles Dharapak/AP)


Family-Friendly Workplace Policies Are Not Frills - They're Basic Needs

By Barack Obama, Reader Supported News

24 June 14

 

s President, my top priority is rebuilding an economy where everybody who works hard has the chance to get ahead.

That's the subject of the first White House Summit on Working Families, which is taking place today. We're bringing together business leaders and workers to talk about the challenges that working parents face every day and how we can address them.

Take flexibility -- the ability to take a few hours off for a school play or to work from home when your kid is sick. Most workers want it, but not enough of them have it -- even though studies show that flexibility makes workers happier and helps companies lower turnover and raise productivity.

Take paid family leave. Many jobs don't offer adequate leave to care for a new baby or an ailing parent, so workers can't afford to be there when their families need them the most. And the United States is the only developed country in the world without paid maternity leave.

Take childcare. Most working families I know can't afford thousands a year for childcare, but often, that's what it costs. I recently got a letter from a woman in Minnesota whose kids' preschool is so expensive it costs more every month than her mortgage.

And take the minimum wage. Nearly 28 million Americans would benefit if we raised the minimum wage to $10.10. And we're not just talking about young people on their first job -- the average worker who would benefit from an increase is 35 years old. Many have kids. And a majority are women. Right now, many full-time minimum-wage workers aren't even making enough to keep their kids out of poverty.

Family leave, childcare, flexibility and a decent wage aren't frills. They're basic needs. They shouldn't be bonuses -- they should be the bottom line.

Parents who work full-time should earn enough to pay the bills and go to work every day knowing that their kids are in good hands. Workers who give their all should know that if they need some flexibility, they can have it -- because their employers understand that it's hard to be productive when you've got a sick kid at home or a childcare crisis. And talented, hard-working people should be able to say yes to a great new opportunity without worrying that their families will pay the price. Nearly half of all working parents surveyed say they've chosen to turn down a job not because they didn't want it, but because it would be too hard on their families. When that many members of our workforce are forced to choose between a job and their family, something's wrong.

Some businesses are realizing that family-friendly policies are a good business practice, because they help build loyalty and inspire workers to go the extra mile. JetBlue offers a flexible work-from-home plan for its customer-service representatives. Google increased its paid parental leave to five months -- and the rate of women leaving the company decreased by half. Cisco lets their employees telecommute as needed, which they estimate saves them over $275 million every year.

And there's a bigger economic case here, too. The strength of our economy rests on whether we're getting the most out of all of our nation's talent -- whether we're making it possible for all our citizens to contribute to our growth and prosperity. That's the key to staying competitive in the global economy. Right now, we're leaving too many people on the sidelines who have the desire and the capacity to work, but are held back by one obstacle or another. It's our job to remove those obstacles. That's what supporting working families is all about.

States are getting on board, too. California, Rhode Island and New Jersey give workers paid family leave. Connecticut offers paid sick days. So does New York City. Since I asked Congress to raise the minimum wage last year, 13 states have taken steps to raise it on their own.

But all Americans should get to benefit from these policies. That's why we need to see some action here in Washington.

I'll work with anyone -- Democrats or Republicans -- to increase opportunity for American workers. But in this year of action, whenever I can act on my own, I will.

Today, I'll sign a Presidential Memorandum directing every agency in the federal government to expand access to flexible work schedules, and giving employees the right to request them.

I'm calling on Congress to pass the Pregnant Workers Fairness Act, because too many pregnant workers are forced to choose between their health and their job. They can get fired for taking too many bathroom breaks, or forced on unpaid leave just for being pregnant. It's inhumane, and it needs to stop.

And to help parents trying to get ahead, I'm directing my Secretary of Labor to invest $25 million in helping people who want to enroll in job-training programs, but don't currently have access to the childcare they need to do it.

I take this personally -- as the son and grandson of some strong women who worked hard to support my sister and me; as the husband of a brilliant woman who struggled to balance work and raising our young ladies when my job often kept me away; and as the father of two beautiful girls, whom I want to be there for as much as I possibly can -- and whom I hope will be able to have families and careers of their own one day.

We know from our history that our country does better when everybody participates; when everyone's talents are put to use; when we all have a fair shot. That's the America I believe in. That's the America I'll keep fighting for every day.

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Thanks to WikiLeaks, Public Can Debate Alarming New Trade Deal Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=31206"><span class="small">David Cay Johnston, Al Jazeera America</span></a>   
Tuesday, 24 June 2014 15:01

Johnston writes: "WikiLeaks last week again pierced the veil of official secrecy that surrounds global trade negotiations. The peek it gave us should alarm everyone."

WikiLeaks has cast light on secret trade talks. (image: Guardian UK)
WikiLeaks has cast light on secret trade talks. (image: Guardian UK)


Thanks to WikiLeaks, Public Can Debate Alarming New Trade Deal

By David Cay Johnston, Al Jazeera America

24 June 14

 

ikiLeaks last week again pierced the veil of official secrecy that surrounds global trade negotiations. The peek it gave us should alarm everyone.

Big Business and national governments wanted to conceal the terms of the proposed Trade in Services Agreement (TISA) while keeping consumers, unions, environmentalists and the vast majority of businesses in the dark. Thanks to WikiLeaks, they failed.

The draft agreement WikiLeaks released on June 19 is fresh, written in May. It is a model of secret law, blatant in its disregard for transparency, democratic process and history. Its opening page says the terms are to remain secret for five years after negotiations formally end or the proposed new rules take effect. Talks to refine that agreement were to resume Monday in Geneva.

Even the secrecy-shrouded Trans Pacific Partnership that President Barack Obama and his Big Business allies want to ram through Congress without changes and only perfunctory debate does not include a five-year veil of secrecy after adoption. WikiLeaks has released a portion of TPP draft documents to the public.

It is impossible to obey a law or know how it affects you when the law is secret. And that is what this agreement would be, a new rulebook for trade in services — principally banking, insurance and trusts.

The 18-page draft agreement involves 50 nations, which produce more than two-thirds of officially measured global economic activity. That means the consequences of the new rules would be enormous, especially for those living in the more than 140 countries not taking part in the talks. Whether people can get loans or buy insurance and at what prices as well as what jobs may be available will be affected by any new trade rules.

Keeping us in the dark

The TISA leak marked the second anniversary of WikiLeaks founder Julian Assange’s taking refuge in Ecuador’s London Embassy, demonstrating that he may be cornered but he has not given up the fight for open government.

If this is the first you have heard of this agreement, it is not surprising. Not one of the five big American newspapers — The New York Times, The Los Angeles Times, The Wall Street Journal, The Washington Post and USA Today — wrote a word about the document. Ditto the major TV networks.

Why the secrecy? Why shut down the marketplace of ideas?

The answer becomes obvious upon reading the draft: It is intended to subvert the creation, by governments, of rules that benefit all of society and instead make sure the rules enhance the power of the financial services industry and reduce its accountability.

The idea of a global agreement on trade in services has plenty of merit. In the long run, we will all be better off with a free flow of capital — and labor — and with rules that make business operate efficiently across borders. But as Adam Smith taught, the invisible hand of the market’s broad benefits are destroyed when competition is thwarted and the producers conspire to set prices (and rules that affect prices) rather than letting the market work its magic.

We should not be surprised that multinational companies and national governments prefer to keep us in the dark. If you had the power to avoid all that messy democratic process, with debate about the merits of policies, demands that you justify your proposals and results that might not be to your liking, wouldn’t you try to make secret deals that impose your will on everyone else?

In February the U.S. Chamber of Commerce, which primarily represents the interests of the biggest American companies, urged adoption of a new trade in services agreement, noting the huge potential gains for Americans because the U.S. is a leader in finance and the technology that enables complex financial products. The tone of the announcement made it clear that the Chamber was thoroughly briefed on the terms — terms that ordinary citizens were not supposed to know for years to come.

The Chamber’s statement read, “The TISA should prohibit restrictions on legitimate cross?border information flows and bar local infrastructure mandates relating to data storage.”

The first part makes sense. The second, about not having to keep records locally, is a red flag.

The importance of records

A key issue in the trade talks concerns the seemingly mundane issue of business records. Most of us give no thought to recordkeeping. But having locally available, verifiable and reliable records has played a major and underappreciated role in the creation of wealth, the reduction of violence and making sure the guilty are convicted while the innocent go free.

Requiring business records and setting rules for what they must contain date to before the Code of Hammurabi nearly four millennia ago, as I teach my Syracuse University College of Law students. Standards pertaining to business records were so important that they are found in seven of Hammurabi’s first 12 codes. More appear later among the 282 rules, some of which have been lost to time.

Hammurabi’s Code drew on several thousand years of experience, but the issues remain relevant to banks, insurers, trust companies and warehousing. Sections 122 and 123 required that when anything is entrusted to another, the owner “shall show everything to some witness, draw up a contract and then hand it over for safe keeping. If he turn it over for safe keeping without witness or contract and if he to whom it was given deny it, then he has no legitimate claim.”

The ancient code allowed six months to locate witnesses. Under modern law a company eager to hide an employee or agent whose testimony would be inconvenient can send that person off to a jurisdiction where no treaty or local law can compel them to return or even to testify under oath. (The various “Law & Order” television series did several episodes making this point.)

History teaches that requiring verifiable and original business records that are kept on site and that must be generally available for inspection by government, litigating parties and others encourages trust and reduces violence. We should pay deference to thousands of years of human experience. The TISA does not.

By statute and regulation, the federal and state governments require a host of businesses to not only maintain records but also to do so in their original form and to make them readily available for inspection.

Such laws come with limitations. For example, the comptroller of the currency has a right to inspect the books and records of national banks, but state banking authorities may do so only under limited circumstances, usually requiring a court order.

Time for debate

It is hard to imagine any benefit from letting companies doing business in one nation keep their original records in another country.

It is also hard to make the case that the cost of keeping a duplicate record at the home office in a different country is a burden. Redundant record-keeping is the norm today, thanks to the creation of photo-duplication services more than a century ago for paper documents. Today no prudent company would keep a single set of digital records in a single location and instead has servers in, say, Manhattan, Mumbai and Montreal so that meltdown, fire, flood or worse in one place does not wipe out the records needed to conduct business.

Be that as it may, any trade in services deal should come after robust public debate about how much freedom each sovereign country should relinquish when it comes to changing its banking, insurance and other regulations. Rules must change with conditions. A trade in services agreement should neither lock existing rules in place nor impose onerous burdens on change.

Now that WikiLeaks has given us a peak at the terms of the deal, we should all call our legislators and demand talks be held in the open, not behind closed doors where only governments and the biggest companies affected by the rules know what is really going on.

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FOCUS | Will ISIS Control Iraq's Oil? Print
Tuesday, 24 June 2014 13:06

Cole writes: "Seven years ago, it was common for militias to smuggle as much as $5 billion a year of Basra refined petroleum products. ISIS may want in on that bonanza, and it has the bomb-making expertise to blackmail the industry into giving him a share that is better than her present one."

An image made available by the Jihadist Twitter account al-Baraka news on June 16, 2014, allegedly shows ISIS militants executing members of the Iraqi forces on the Iraqi-Syrian border. (photo: AFP)
An image made available by the Jihadist Twitter account al-Baraka news on June 16, 2014, allegedly shows ISIS militants executing members of the Iraqi forces on the Iraqi-Syrian border. (photo: AFP)


Will ISIS Control Iraq's Oil?

By Juan Cole, Informed Comment

24 June 14

 

he virtual collapse of the Iraqi army and its inability to take back any territory from Sunni forces coordinated by the Islamic State of Iraq and Syria brings into question our earlier insouciance about the oil impact of ISIS advances. The Kirkuk fields in the north produce only about 670,000 barrels a day. Up to 300,000 of that production can be exported through the pipeline to Ceyhan in Turkey. These days, the pipeline is only handling about 120,000 barrels a day from Iraqi Kurdistan.

The Kirkuk fields contribute only a fraction of Iraq’s 3.3 million barrel a day production. Most of it is in the south around Basra.

Until the Ceyhan pipeline was reopened in May after sabotage closed it, all Iraq’s oil exports of 2.5 million barrels a day were going out through Basra in the south.

But if city after city is falling to ISIS, and they have even captured the Jordanian border towns, you have to ask yourself if they can really be kept out of Basra in the south. Seven years ago, it was common for militias to smuggle as much as $5 billion a year of Basra refined petroleum products. ISIS may want in on that bonanza, and it has the bomb-making expertise to blackmail the industry into giving him a share that is better than her present one.

An even more frightening possibility. What if ISIS becomes popular in Saudi Arabia itself? If Saudi production were disrupted, gasoline prices would head toward the moon.

As it is, Brent Crude on the London exchange reached over $115 a barrel last week, and had fallen to $114 or yesterday. A decade ago it wasn’t unheard of for a barrel to be sold at $15 a barrel, about a tenth of what it is now, though the price was more usually around $30.

During the past ten years, American drivers have seen their gasoline bill go up tremendously– though not as much as it by all rights should have– and stay there. Because of Iraq unrest, it will likely average as much as $3.70 later this summer nationwide (because of state taxes and varying profit taking by stations, the price is different from state to state).

The hype around hydraulic fracturing of petroleum in North Dakota cannot obscure that newly found US fields are small by world standards, and are shallow and doomed to run dry by the early 2020s. US fracked oil is almost irrelevant when the world is producing 91 million barrels a day and appears to want 100 barrels a day.

The US is not energy independent and is unlikely to become so. It uses 18.7 million barrels a day of petroleum, with a shortfall of around 5.7 mn b/d. That shortfall will shrink slightly through 2022 when it will likely start growing again because the fracked oil fields are shallow and will quickly get used up.

Moreover, the new US production is small enough in world terms that it doesn’t bring the prices down, given growing Asian demand. Despite small differences between the West Texas Crude and Brent exchanges (with a typical spread of $10 or 10% of the price), the petroleum market is pretty much a single market worldwide. Thus, US prices move up when there are shortages in countries from which it does not import. It is like everyone sitting in a backyard pool full of oil. If the level of liquid falls, it falls for everyone, and supply and demand determine the price.

People with long commutes are going to feel the extra cost this summer.

Americans need, where they can, to move closer to their work. A lot of young people have moved downtown and use public transport because of the high gasoline prices. That is why we didn’t go back up to using 21 mn barrels a day of petroleum when the economy began recovering. All cities need to look at Portland’s transportation program.

For those who drive, Americans who own their own home are crazy not to buy an electric vehicle or a plug-in hybrid.

I put solar panels on my house last December. In May they provided virtually all of the 600 kilowatt hours of electricity my home uses every month. I had no electricity bill. This month my utility is sending me $26 because I generated more than I used. Given the $7500 Federal tax break and the bonus I got from my utility, probably 40% of the cost of the panels was defrayed.

And a got a Chevy Volt, which is a plug-in hybrid (it goes to gasoline when the battery runs dry). Here’s what that looks like:

Juan’s Chevy Volt statistics in May:

  • Fuel Economy: 170 mpg
  • Electric Consumption: 30 kW-hr/100 miles
  • Electric Miles: 273
  • Gas Miles: 80
  • Total Miles: 354
  • Percentage on Electric: 77 %

My car used about 82.5 kilowatt hours of electricity in May, accounting for 13% of my house’s consumption. (Actually Ann Arbor lets you charge for free in city parking lots, so probably 30 or so KwH was just given to me by the city).

Since sunshine is free, I drove 273 miles for nothing, which would have cost me, at $3.70 a gallon and an ordinary gas mileage of say 30 miles per gallon, about $40. (I don’t work 9-5, so most often I charge the car in the daytime from sunlight, avoiding Michigan’s dirty coal dependence).

Between having little or no electric bill and a very small gasoline bill, I’ll pay off the panels in 6 years or so. Assuming that I would have bought a car like a Volt (it is a *nice* car and they’ve dropped it to $32,000) anyway, I’m way ahead economically and not dependent on foreign oil or its instabilities at all.

A bonus, which is the really important thing. Between the car and the panels I have avoided about 2 tons of carbon dioxide pollution so far this year. Each American on average produces 16 tons of CO2 each year, though just driving and powering one’s home is much less than that (the extra comes from the factories that make the things we buy). I have taken a big step toward a net zero carbon style of life. (It does of course cost carbon to produce the panels and the car, but that will be paid off fairly quickly). The US produces 5 bn metric tons of CO2 every year. We need that to be zero ASAP.

I know not everyone can afford the panels or the car. But actually if those who can afford them buy them, it reduces the cost for everyone else down the road. By Swanson’s law, “the price of solar photovoltaic modules tends to drop 20% for every doubling of cumulative shipped volume”. Also, in states like California or Colorado, companies will rent you the panels for an up front cost of only $1000.

After 6 years or so, the savings will be cream. So even if you didn’t believe in global warming, if you plan to be in your house for a decade or more you’re crazy not to do what I did. The cost of solar panels has come way down quickly. Plus, it saves you having to worry about the Middle East oil fields.

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FOCUS | It's the Oil, Stupid! Print
Tuesday, 24 June 2014 11:41

Schwartz writes: "Events in Iraq are headline news everywhere, and once again, there is no mention of the issue that underlies much of the violence: control of Iraqi oil. Instead, the media is flooded with debate about, horror over, and extensive analysis of a not-exactly-brand-new terrorist threat, the Islamic State of Iraq and Syria (ISIS)."

If Iraq didn't have oil would we care who was in charge? (photo: Reuters)
If Iraq didn't have oil would we care who was in charge? (photo: Reuters)


It's the Oil, Stupid!

By Michael Schwartz, TomDispatch

24 June 14

 

vents in Iraq are headline news everywhere, and once again, there is no mention of the issue that underlies much of the violence: control of Iraqi oil. Instead, the media is flooded with debate about, horror over, and extensive analysis of a not-exactly-brand-new terrorist threat, the Islamic State of Iraq and Syria (ISIS). There are, in addition, elaborate discussions about the possibility of a civil war that threatens both a new round of ethnic cleansing and the collapse of the embattled government of Prime Minister Nouri al-Maliki.

Underway are, in fact, “a series of urban revolts against the government,” as Middle Eastern expert Juan Cole has called them. They are currently restricted to Sunni areas of the country and have a distinctly sectarian character, which is why groups like ISIS can thrive and even take a leadership role in various locales. These revolts have, however, neither been created nor are they controlled by ISIS and its several thousand fighters. They also involve former Baathists and Saddam Hussein loyalists, tribal militias, and many others. And at least in incipient form they may not, in the end, be restricted to Sunni areas. As the New York Times reported last week, the oil industry is “worried that the unrest could spread” to the southern Shia-dominated city of Basra, where “Iraq’s main oil fields and export facilities are clustered.”

Under the seething ocean of Sunni discontent lies a factor that is being ignored. The insurgents are not only in a struggle against what they see as oppression by a largely Shiite government in Baghdad and its security forces, but also over who will control and benefit from what Maliki -- speaking for most of his constituents -- told the Wall Street Journal is Iraq’s “national patrimony.”

The Deconstruction of Saddam Hussein’s Iraq

Does anyone remember what Iraq looked like a dozen years ago, when Saddam Hussein still ruled the country and the United States was about to invade? On the one hand, Iraqis, especially Shiites and Kurds, suffered under the iron heel of an oppressive dictator -- who may have killed 250,000 or more of his own people during his 25-year reign. They also struggled against the privation caused by U.S.-led sanctions -- some estimates at the time placed the number of sanction-caused infant deaths alone at 500,000.

On the other hand, the country had a number of successful export-oriented industries like leather goods and agricultural products like dates that offered employment to hundreds of thousands of relatively well paid workers and entrepreneurs. It also had a resilient electrical, water, and highway infrastructure (though increasingly decrepit thanks to those sanctions). In addition, it had a best-in-the-region primary and higher educational system, and the finest (free) health care in the Middle East. In a nation of 27 million people, it also had -- in comparison to other countries in the area -- a large, mainly government-employed middle class of three million.

These pluses all flowed from a single source: the 2.5 million barrels of oil that Iraq produced each day. The daily income from the sale of the “national patrimony” undergirded the country’s economic superstructure. In fact, the oil-based government budget was so ample that it supported Hussein with multiple palaces, enriched all his relatives and allies, and financed his various wars, both on other countries and on Iraq’s Kurds and Shiites.

This mixture of oppression and prosperity ended with the U.S. invasion. Despite denials that it would ever touch the Iraqi “patrimony,” the Bush administration went straight for those oil revenues, diverting them away from the economy and into “debt payment” and soon enough, a pacification campaign. Despite promises from Washington that, under an American occupation, production would soon rise to six million barrels per day, the struggle to take control of energy production out of Iraqi hands ended up crippling the industry and reducing production by 40%.

In fact, the occupation government was a whirlwind of economic destruction. It quickly began dismantling all government-run (and oil-subsidized) industrial plants, bankrupting the private industries that depended on them. It disrupted or destroyed commercial agriculture, again by discontinuing Saddam-era oil-financed subsidies and by air attacks on insurgents in rural areas. It imposed both austerity measures and a “de-Baathification” program on the country’s educational and medical systems.

Since most Iraqis holding any position of significance had no choice but to belong to Saddam’s Baath Party, this proved a disaster for middle class professionals, a majority of whom found themselves jobless or in exile in neighboring countries. Since they had managed such systems, often under increasingly terrible conditions, the effect on the management of the electrical, water, and highway infrastructure was devastating. Add in the effects of bombing campaigns and the privatization of maintenance and you had a lasting disaster.

When, in 2009, the Obama administration first began withdrawing U.S. combat troops, Iraqis everywhere -- but especially in Sunni areas -- faced up to 60% unemployment, sporadic electrical service, poisoned water systems, episodic education, a dysfunctional medical system, and a lack of viable public or private transportation. Few Westerners remember that, in 2010, Maliki based his election campaign on a promise to remedy these problems by -- that figure again -- increasing oil production to six million barrels per day. Since the existing production was more than sufficient to operate the government, virtually all of the increased revenues could be used to reconstruct the country’s infrastructure, revive the government sector, and rehabilitate all the devastated public services, industries, and agricultural sectors.

The Corrupt Legacy of the U.S. Occupation

Despite his obvious Shia sectarianism, Sunnis gave Maliki time to fulfill his campaign promises. For some, hopes were increased when service contracts were auctioned off to international oil firms with the aim of hiking energy production to that six million barrel mark by 2020. (Some, however, just saw this as the selling off of that national patrimony.) Many Iraqis were initially reassured when oil production began to rise: in 2011, the Hussein-era mark of 2.5 million barrels per day was finally reached, and in 2013 production finally exceeded 3.0 million barrels per day.

These increases raised hopes that reconstruction from the invasion and occupation era would finally begin. With oil prices holding steady at just under $100 per barrel, government oil revenues more than doubled, from about $50 billion in 2010 to more than $100 billion in 2013. This increase alone, if distributed to the population, would have constituted a windfall $10,000 subsidy for each of the five million Iraqi families. It also would have constituted a very promising down payment on restoring the Iraqi economy and its social services. (The electrical system in itself required tens of billions of dollars in new investment simply to restore it to inadequate pre-war levels.)

But none of this oil wealth trickled down to the grassroots, especially in Sunni areas of the country where signs of reconstruction, economic development, restored services, or jobs were hard to discern. Instead, the vast new revenues disappeared into the recesses of a government ranked by Transparency International as the seventh most corrupt on the planet.

Demanding a Share of the National Patrimony

So here’s where Iraqi oil, or the lack of its revenues at least, comes into play. Communities across Iraq, especially in embittered Sunni areas, began demanding funding for reconstruction, often backed by local and provincial governments. In response, the Maliki government relentlessly refused to allocate any oil revenues for such projects, choosing instead to denounce such demands as efforts to divert funds from more urgent budgetary imperatives. That included tens of billions of dollars needed to purchase military supplies including, in 2011, 18 F-16 jets from the United States for $4 billion. In a rare moment of ironic insight, Time magazine concluded its coverage of the F-16 purchase with this comment: “The good news is the deal will likely keep Lockheed’s F-16 plant in Fort Worth running perhaps a year longer. The bad news is that only 70% of Iraqis have access to clean water, and only 25% have clean sanitation.”

In all fairness to Maliki, his government did use some of the new oil revenues to begin restaffing wrecked government agencies and social service institutions, but virtually all of the new employment went to Shia citizens in Shia areas, while Sunnis continued to be fired from government jobs. This lack of employment -- which meant, of course, the lack of oil money -- has been key to the Sunni uprising. As Patrick Cockburn of the British newspaper, the Independent, wrote,

“Sunni men were alienated by not having a job because government funds were spent elsewhere and, on occasion, suddenly sacked without a pension for obligatory membership of the Ba'ath party decades earlier. One Sunni teacher with 30 years' experience one day got a crumpled note under his door telling him not to come to work at his school any more because he had been fired for this reason. ‘What am I to do? How am I going to feed my family?’ he asked.”

With conditions worsening, Sunni communities only became more insistent, supplementing their petitions and demonstrations with sit-ins at government offices, road blockades, and Tahrir Square-type occupations of public spaces. Maliki’s responses also escalated to arresting the political messengers, dispersing demonstrations, and, in a key moment in 2013, “killing dozens” of protestors when his “security forces opened fire on a Sunni protest camp.” This repression and the continued frustration of local demands helped regenerate the insurgencies that had been the backbone of the Sunni resistance during the American occupation. Once lethal violence began to be applied by government forces, guerrilla attacks became common in the areas north and west of Baghdad that the U.S. occupiers had labeled “the Sunni triangle.”

Many of these guerrilla actions were aimed at assassinating government officials, police, and -- as their presence increased -- soldiers sent by Maliki to suppress the protests. It is notable, however, that the most determined, well planned, and dangerous of these armed responses targeted oil facilities. Though the Sunni areas of Iraq are not major centers of oil production -- more than 90% of the country’s energy is extracted in the Shia areas in the south and the Kirkuk region controlled by the Kurds -- there are ample oil targets there. In addition to a number of small oil fields, the “Sunni triangle” has almost the entire length of the only substantial pipeline that exits the country (to Turkey), a significant refinery in Haditha, and the Baiji petroleum complex, which contains an electrical power plant serving the northern provinces and a 310,000 barrel per day oil refinery producing a third of the country’s refined petroleum.

There was nothing new about local guerrillas attacking oil facilities. In late 2003, soon after the U.S. occupation cut off the flow of oil revenues to Sunni areas, residents resorted to various strategies to stop production or export until they received what they felt was their fair share of the proceeds. The vulnerable pipeline to Turkey was rendered useless, thanks to more than 600 attacks. The Baiji and Haditha facilities held insurgents at bay by allowing local tribal leaders to siphon off a share -- often as much as 20% -- of the oil flowing through them. After the U.S. military took control of the facilities in early 2007 and ended this arrangement, the two refineries were regularly subjected to crippling attacks.

The pipeline and refineries returned to continuous operation only after the U.S. left Anbar Province and Maliki once again promised local tribal leaders and insurgents (often the same people) a share of the oil in exchange for “protecting” the facilities from theft or attack. This deal lasted for almost two years, but when the government began cracking down on Sunni protest, the “protection” was withdrawn. Looking at these developments from a petroleum perspective, Iraq Oil Report, an online industry newsletter that offers the most detailed coverage of oil developments in Iraq, marked this as a key moment of “deteriorating security,” commenting that the “forces guarding energy facilities... have historically relied on alliances with locals to help provide protection.”

Fighting for Oil

Iraq Oil Report has conscientiously covered the consequences of this “deteriorating security” situation. “Since last year when attacks on the [Turkish] pipeline began to increase,” the North Oil Company, in charge of production in Sunni areas, registered a 50% drop in production. The pipeline was definitively cut on March 2nd and since then, repair crews have been “prevented from accessing” the site of the break. The feeder pipeline for the Baiji complex was bombed on April 16th, causing a huge spill that rendered water from the Tigris River undrinkable for several days.

After “numerous” attacks in late 2013, the Sonangol Oil Company, the national oil company of Angola, invoked the “force majeure” clause in its contract with the Iraqi government, abandoning four years of development work on the the Qaiyarah and Najmah fields in Nineveh Province. This April, insurgents kidnapped the head of the Haditha refinery. In June, they took possession of the idle plant after government military forces abandoned it in the wake of the collapse of the Iraqi army in the country’s second largest city, Mosul.

In response to this rising tide of guerrilla attacks, the Maliki regime escalated its repression of Sunni communities, punishing them for “harboring” the insurgents. More and more soldiers were sent to cities deemed to be centers of “terrorism,” with orders to suppress all forms of protest. In December 2013, when government troops began using lethal force to clear protest camps that were blocking roads and commerce in several cities, armed guerrilla attacks on the military rose precipitously. In January, government officials and troops abandoned parts of Ramadi and all of Falluja, two key cities in the Sunni triangle.

This month, faced with what Patrick Cockburn called a "general uprising," 50,000 troops abandoned their weapons to the guerrillas, and fled Mosul as well as several smaller cities. This development hit as if out of nowhere and was treated accordingly by much of the U.S. media, but Cockburn expressed the view of many informed observers when he termed the collapse of the army in Sunni areas “unsurprising.” As he and others pointed out, the soldiers of that corruption-ridden force “were not prepared to fight and die in their posts... since their jobs were always primarily about making money for their families.”

The military withdrawal from the cities immediately led to at least a partial withdrawal from oil facilities. On June 13th, two days after the fall of Mosul, Iraq Oil Report noted that the power station and other buildings in the Baiji complex were already “under the control of local tribes.” After a counterattack by government reinforcements, the complex became a contested area.

Iraq Oil Report characterized the attack on Baiji by insurgents as “what could be an attempt to hijack a portion of Iraq’s oil revenue stream.” If the occupation of Baiji is consolidated, the “zone of control” would also include the Haditha refinery, the Qaiyarah and Hamrah oil fields, and “key infrastructure corridors such as the Iraq-Turkey Pipeline and al-Fatha, where a collection of pipelines and other facilities deliver oil, gas and fuel to the center and north of the country.”

Further proof of this intention to control “a portion of Iraq’s oil revenue stream” can be found in the first actions taken by tribal guerrillas once they captured the power station at Baiji: “Militants have caused no damage and instructed workers to keep the facility online” in preparation for restarting the facility as soon as possible. Similar policies were instituted in the captured oil fields and at the Haditha refinery. Though the current situation is too uncertain to permit actual operation of the facilities, the overarching goal of the militants is clear. They are attempting to accomplish by force what could not be accomplished through the political process and protest: taking possession of a significant portion of the proceeds from the country’s oil exports.

And the insurgents appear determined to begin the reconstruction process that Maliki refused to fund. Only a few days after these victories, the Associated Press reported that insurgents were promising Mosul citizens and returning refugees “cheap gas and food,” and that they would soon restore power and water, and remove traffic barricades. Assumedly, this will be funded by upwards of $450 million (of oil money), as well as gold bullion, reportedly looted from a branch of the Central Bank of Iraq and assorted other banks in the Mosul area.

The oppressive regime of Saddam Hussein was racked with insurgency, and when vicious repression failed, it delivered a portion of the vast oil revenues to the people in the form of government jobs, social services, and subsidized industries and agriculture. The oppressive United States occupation was racked with insurgency precisely because it tried to harness the country’s vast oil revenues to its imperial designs in the Middle East. The oppressive Maliki regime is now racked with insurgency, because the prime minister refused to share those same vast oil revenues with his Sunni constituents.

It has always been about the oil, stupid!

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