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Make No Mistake - This Business With Wells Fargo Isn't Over Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=7122"><span class="small">Elizabeth Warren, Reader Supported News</span></a>   
Wednesday, 14 September 2016 13:05

Warren writes: "Wells Fargo proved that giant banks still think the rules don't apply to them. They think they can cheat their customers, stuff their pockets with money, and still walk away."

Sen. Elizabeth Warren. (photo: ElizabethWarren.com)
Sen. Elizabeth Warren. (photo: ElizabethWarren.com)


Make No Mistake - This Business With Wells Fargo Isn't Over

By Elizabeth Warren, Reader Supported News

14 September 16

 

ello,

Why are the giant banks still fighting to kill off the Consumer Financial Protection Bureau?

Why have Republicans advanced a bill to take the legs out from under the CFPB?

Why did one Republican presidential candidate after another – including Donald Trump – promise that if they were in charge, they would repeal the Dodd-Frank financial regulations, including the CFPB?

We got a hint a few days ago: Wells Fargo proved that giant banks still think the rules don’t apply to them. Nope. They think they can cheat their customers, stuff their pockets with money, and still walk away.

Over the past five years, Wells Fargo created more than 2 million checking and credit card accounts that weren’t authorized by its customers. Employees who had strict sales quotas to hit would secretly open and transfer money in and out of those fraudulent accounts, costing thousands of customers millions of dollars in fees.

The new Consumer Financial Protection Bureau went after this fraud with everything they’ve got. Late last week, the CFPB announced that Wells Fargo customers are getting all of their money back and Wells Fargo will pay a record-breaking $100 million fine to the agency.

Make no mistake – this business with Wells Fargo isn’t over. How could the bank create more than 2 million fake accounts without senior executives knowing? How could the bank fire more than 5000 low-level employees for misconduct without stopping to wonder whether there was a problem with the firm’s incentives or culture? I think there are more questions for Wells Fargo to answer.

But the CFPB has done its job: spearheading an investigation, watching out for consumers, imposing a fine, and making the whole stinky mess public. And that’s why the big banks and their Republican friends want to leash up the CFPB – because this is a government agency that is working for the people.

The consumer agency investigates giant frauds, but it also helps people one at a time. The CFPB complaint hotline has a website and a phone number you can use when you have a problem with your bank, credit card, mortgage company, or student loan servicer. So far, the hotline has processed nearly a million complaints, big and small. Not only does the CFPB work to get you a response on your complaint, but they also use the information to find those large, widespread cases of fraud and abuse.

Incidents like Wells Fargo come to light the more people contact the CFPB about banks’ bad behavior, so if you have a complaint, submit it here (or bookmark this website).

The Wells Fargo case is one more reason we need to fight for a strong Consumer Financial Protection Bureau. The big banks and financial institutions hate the CFPB, and they have bills pending in the House and Senate to get rid of it. The Republican Party’s 2016 platform calls for the CFPB to be “abolished.” The only way to stop the right-wing attacks on the consumer agency is for all of us to fight back.

The CFPB is on our side – but we need to use it and to fight for

it.

Thanks for being a part of this,

Elizabeth

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FOCUS: Pardon Edward Snowden Print
Wednesday, 14 September 2016 11:25

Pilkington writes: "Bernie Sanders leads a chorus of prominent public figures calling for clemency, a plea agreement or, in several cases, a full pardon for the National Security Agency whistleblower Edward Snowden."

Edward Snowden. Politicians, activists, scholars and experts are divided on whether the whistleblower deserves praise or punishment for his actions. (photo: Alan Rusbridger/Guardian UK)
Edward Snowden. Politicians, activists, scholars and experts are divided on whether the whistleblower deserves praise or punishment for his actions. (photo: Alan Rusbridger/Guardian UK)


Pardon Edward Snowden

By Ed Pilkington, Guardian UK

14 September 16

 

Bernie Sanders, Daniel Ellsberg, former members of the NSA and more weigh in on whether Obama should grant clemency to the divisive whistleblower

ernie Sanders leads a chorus of prominent public figures calling for clemency, a plea agreement or, in several cases, a full pardon for the National Security Agency whistleblower Edward Snowden.

Writing in the Guardian, the runner-up in the race to become Democratic presidential candidate argues that Snowden helped to educate the American public about how the NSA violated the constitutional rights of citizens with its mass surveillance program. Sanders argues that there should be some form of resolution that would acknowledge both the “troubling revelations” that he had brought to light and the crime that he committed in doing so, that would “spare him a long prison sentence or permanent exile”.

Sanders joins 20 other prominent public figures – from Hollywood actors and rock musicians to politicians, professors and Black Lives Matter activists – who call on Barack Obama to find some way of allowing Snowden to return home to the US from exile in Russia. The Guardian’s voices are raised in the week that Oliver Stone’s film, Snowden, is released in the US and that a coalition of groups including the ACLU and Amnesty International launch a new campaign for a presidential pardon before Obama steps down.

Among the writers in the Guardian are Daniel Ellsberg, the whistleblower who released the Pentagon Papers in the 1970s, who calls for Snowden to be allowed to make a public interest defense in any US trial. From the world of arts, actor Susan Sarandon and director Terry Gilliam, novelist Barry Eisler and Sonic Youth singer Thurston Moore all make impassioned calls for an Obama pardon.

Senior politicians from both sides of the Atlantic, including former US senator Mark Udall, UK parliamentarian David Winnick and German Green party member Hans-Christian Ströbele all fly the flag for a Snowden homecoming. Similar calls are made by public intellectuals including Noam Chomsky, Cornel West and Sanders’ former Democratic presidential rival and Harvard law professor, Lawrence Lessig.

Not everyone writing in the Guardian today is empathetic towards the whistleblower. The former director of the NSA, Michael Hayden, says Snowden should face “the full force of the law” were he to come home. Stewart Baker, also latterly of the NSA, argues that Snowden’s leak caused harm to US national interests – a contention that is strongly disputed by many of the other people writing here.

Bernie Sanders
US senator for Vermont and Democratic presidential runner-up

(photo: Guardian UK/Mike Groll/AP)

The information disclosed by Edward Snowden has allowed Congress and the American people to understand the degree to which the NSA has abused its authority and violated our constitutional rights.

Now we must learn from the troubling revelations Mr Snowden brought to light. Our intelligence and law enforcement agencies must be given the tools they need to protect us, but that can be done in a way that does not sacrifice our rights.

While Mr Snowden played an important role in educating the American people, there is no debate that he also violated an oath and committed a crime. In my view, the interests of justice would be best served if our government granted him some form of clemency or a plea agreement that would spare him a long prison sentence or permanent exile.

Susan Sarandon
Oscar-winning actor

(photo: Guardian UK/Noam Galai)

Ed Snowden did this country a great service. Here was a man who had a well-paying job and a good life in Hawaii yet tore it all up so that he could reveal to all of us what the NSA was doing to us in the name of national security. He did so for no personal gain, and at massive personal cost, because he cared about a basic principle: that governments should not lie to their people.

I don’t think a person like that should be exiled from their country. I don’t think a person like that deserves to be locked away for decades like Chelsea Manning. I think President Obama should do the right thing: pardon Ed and let him come home to his family and his people.

Daniel Ellsberg
Former US military analyst who released the 1971 Pentagon Papers on the Vietnam war, and who met Snowden in Moscow last year

Ed Snowden should be freed of the legal burden hanging over him. They should remove the indictment, pardon him if that’s the way to do it, so that he is no longer facing prison.

The NSA and US government have revealed no evidence that the information Ed Snowden released has caused any harm. Inconvenience, yes, embarrassment certainly, but what has truly been revealed is that the NSA itself was unquestionably committing international, domestic and constitutional crimes.

Were the government to have any evidence that Snowden revealed information that should have been protected, I think he should be judged by a jury. I was the first person to be tried for a leak under the Espionage Act, and I certainly didn’t object to my case being weighed by a jury, although it never came to that. But there has to be a public interest defense, which doesn’t exist in US law now.

As things stand, I think the chance that this or any president will pardon Snowden is zero. They wouldn’t dare to challenge the intelligence community that remains so hostile to him. Nor does Snowden have any chance of a fair trial under the Espionage Act, any more than I did.

So nothing would be gained by him coming back and standing trial unless the Espionage Act were changed to permit that public interest defense. He’s said to me that he’s willing to come back and serve one, two or conceivably three years as a result of a plea bargain arranged beforehand, but they haven’t offered him one as far as I’m aware.

Terry Gilliam
Film director and former Monty Python star

I think anyone helping to strengthen the workings of democracy should be rewarded. What Edward Snowden’s prize should be, I don’t know, perhaps something as unglamorous and hard to display on his mantelpiece as a presidential pardon. That would be nice.

Michael Hayden
Former director of the National Security Agency

What Edward Snowden did amounted to the greatest hemorrhaging of legitimate American secrets in the history of my nation.

If he wants to come home, and that’s his choice, I think he should face the full force of the law. Then he would be able to mount his defense. I would not be supportive of a public interest defense, however, because the American people declare some things to be legal and some things to be illegal, and don’t anoint the individual citizen to decide whether that’s a good or a bad idea.

If Snowden really claims that his actions amounted to genuine civil disobedience, he should go to some English language bookstore in Moscow and get a copy of Henry David Thoreau’s Civil Disobedience. Thoreau points out clearly that civil disobedience gets its moral authority by the willingness to suffer the penalties from disobeying a law, even if you think that law is unjust.

It would be incredibly unwise for this president to offer a pardon. President Obama and his successors are dependent on the 100,000-plus people inside the American intelligence community – the people Edward Snowden betrayed. For any president to align himself with Snowden’s approach in this controversy would carry an incredible cost to the spirit and morale of the intelligence community.

Malkia Cyril
Executive director of the Center for Media Justice and a Black Lives Matter activist

Right now, Black Lives Matter activists protesting deadly police and other forms of state violence who have not been accused of any crime are being spied on with Stingray cellphone interceptors, tracked through biometric facial recognition software and license-plate readers, among other things. And, this isn’t limited to black activists.

Black people of all kinds know that since blacks were enslaved in the western hemisphere, to be black in America is to suffer persistent surveillance, to be watched as if being black was a spectator sport. How many black people right now are wearing electronic monitors? Are in databases we can’t get off? Are on the no-fly list? Are living in communities that are so over-policed they have been turned into open-air prisons?

This is why Edward Snowden must be pardoned – because the ability of black communities to organize for our collective liberation depends, in part, on whistleblowers like him. Black movements for peace and freedom demand that out of the darkness of empire, truth-tellers emerge to sound the alarm.

His revelations directly challenged the commonly held belief that media, phone and technology corporations must always give into state interests to target and harass the public. His bravery was a catalyst for the modern movement to defend democracy from both state and corporate overreach.

Noam Chomsky
Professor of linguistics at Massachusetts Institute of Technology

President Obama should provide Edward Snowden with a form of clemency that would permit him to return home to the United States – and still more appropriately in my view, remove all threats of criminal investigation as well.

Snowden should, in my opinion, be welcomed home with honors for his service to his country, and for his courage and integrity in the manner in which he performed this service. Apart from exceptional circumstances, citizens have every right to know what their government is doing, in particular what it is doing to them – in the present case, as Snowden revealed to us, keeping citizens under extensive and deeply intrusive surveillance.

No case has been made that relevant exceptional circumstances prevail. As well known, initial claims about prevention of terrorist actions collapsed under investigation, and no credible case has been made that the massive invasion of privacy, arguably in violation of constitutional rights, is warranted. Snowden made every effort to follow established procedures for bringing this crucial information to the general public. When these failed, he took the courageous and honorable step of transmitting the information through the medium of careful and highly reliable and experienced journalists, who, along with him, carefully vetted the material to ensure that no possible harm would be caused to individuals or to security.

Citizens of the United States – and indeed the world, considering the extraordinary range of the operations that have been revealed – are very much in Snowden’s debt. He should certainly not be punished in any way for the services that he has performed in the interests of democracy and civil rights. At the very least, he should be granted the full freedom to return home without fear of prosecution, and, I very much hope, to be welcomed with the respect that he richly deserves.

Thurston Moore
Singer-songwriter of Sonic Youth

From the perspective of someone born in the friendly ’50s in the USA, it has become normal to witness the uncovering of classified information over time ...

Living in this day in age one would imagine that we – so connected now – could’ve found a way to share resources in a more socially responsible way. It’s absolutely perplexing to me to try to understand people involved in The Bilderberg Group, or see people, even friends and colleagues in places such as Los Angeles, spending hours and hours and hundreds of dollars bleaching their hair every week and purchasing absurdly priced designer clothing whilst in travels on the same tours through Europe and witness to young Syrian refugees or young disenfranchised children and kids in Detroit or Mexico City or even London on the streets, starved. There is an obvious and embarrassing injustice.

Simultaneously going to the cinema, there are sometimes advertisements/campaigns before the trailers to join the military – and there we are in the audience boo-ing! How dare these guys boast their heartless, imperialist activities in an effort to recruit young people. It’s sickening.

It’s difficult to talk about. It’s hard to even talk anymore. I listen more now. We listen to our Palestinian neighbors. We listen to the brave men and women and trans people fighting for basic rights. We seek out film festivals and documentary festivals where activist artists bravely tell stories to try to affect change in communities. We read everything Chelsea Manning has written. It inspires us. We try to make a more universal music of peace and love.

We are grateful for the courage and the conscience of the whistleblowers. Everywhere. From Angela Davis and the Black Panther party in the USA, Anna Mendelssohn (aka Grace Lake) and Stuart Christie and The Angry Brigade in the UK and today’s activist beauties such as Snowden, Manning, Assange ... others. All I can say to them is thank you, and try to honour them in my music. They are heroes. They will be remembered, hopefully honored in their own lifetime.

Cornel West
Philosopher, civil rights activist and professor at Princeton University

(photo: Guardian UK)

In an age of pervasive mendacity and massive criminality my dear brother Edward Snowden exemplifies courage and integrity. I call for President Obama to give him a pardon owing to his public service for truth and democratic accountability.

Lawrence Wilkerson
Retired US army colonel and former chief of staff to US secretary of state Colin Powell

Frankly, I believe that were Snowden to return to the US, he would be treated badly; so much so, that even if he were fully pardoned – and could convince himself that that were truly so – he still would still be treated very badly.

That, sadly, is the nature of our country these days (some would argue we have always been thus and point to all manner of cases from the Salem witch trials to Alger Hiss, to the Rosenbergs, to the San Francisco 49ers quarterback now being shouted down for his refusals with respect to the US national anthem). Snowden’s actions, in many minds, constitute treason. I’m quite certain that most of the following of Donald Trump, for example, would want him in prison for life at best and hanged at worst.

After listening to Snowden on tape and video multiple times, I believe him to be a highly courageous and extremely ethical young man. He just might be the type who could weather such a storm and lead an otherwise productive life, like Daniel Ellsberg has for example. That might make him a martyr to some; but he will remain a villain to many others.

Am I for pardoning him? I would have to know a great deal more about the real impacts of his revelations – not the lies the government tells – before I could formulate my view. None of this truth is about to be forthcoming, so I really cannot make an informed judgment. It’s shameful because I don’t think any reasonable citizen can.

Mishi Choudhary
Technology lawyer

The essence of America’s precious freedom is the right to speak up. For people all over the world, especially in countries where whistleblowers’ only fate is death, Snowden has become a symbol of citizenship and moral courage. He has changed the way we feel about possibility of freedom.

He has taught us that in times of moral crisis, neutrality is not the side we want to be on. In pardoning Snowden, America strengthens itself and the ideas it stands for. Bring him home, honor him.

Barry Eisler
Bestselling novelist and former covert CIA operative

I wholeheartedly support a full presidential pardon for whistleblower Edward Snowden.

As a CIA officer 25 years ago, I knew the government classified too much information. Everyone knew it. But no one spoke up. And today the problem is far worse.

But because of Edward Snowden, we now know the head of US intelligence was lying to the Senate committee responsible for intelligence oversight. Programs concealed from the citizenry have been declared unconstitutional by federal courts. For the first time, the country has the minimal information necessary to grapple with the benefits and dangers of a surveillance apparatus far more vast and intrusive even than the one Senator Frank Church warned 40 years ago could lead to the eradication of privacy and the imposition of tyranny.

Surely in a democracy, the people have a right to know about the implementation of programs with risks as vast as that. Surely in a democracy, the people have a need to know.

That today we do know, that today we are able to engage in this critical conversation about how properly to govern ourselves, is almost entirely due to the conscience and courage of one man: Edward Snowden. For his service to his country, he deserves a Presidential Medal of Freedom. But a presidential pardon might be acknowledgment enough.

Susan Buck-Morss
Philosopher and professor of political science at the CUNY Graduate Center

The charge of espionage against Snowden makes no sense. How can he be guilty as an agent of an enemy power, when his goal was to defend the people of the United States against secret and illegal actions by their own government?

A line between hero and traitor in this case is impossible to draw. And that is the deeper issue. What would a pardon of Edward Snowden signal? It would acknowledge the very principle of democratic rule. Nothing protects us from the abuses of executive power more effectively than their exposure by individual citizens who make them public and sound the alarm.

David Winnick
UK member of parliament and vice-chair of the Home Affairs Committee

From the start I thought that Edward Snowden had made a significant contribution in revealing the excesses and, in some instances, illegal surveillance carried out by US agencies.

If not for his actions, there would not have been the tightening up of such operations and we would never have known how even leaders of various democracies, such as Chancellor Merkel, had their phones tapped by the National Security Agency.

A half a century ago, Daniel Ellsberg was denounced in the US as a traitor for releasing the Pentagon Papers, which contained information concealed from the public about the war being waged against Vietnam. His actions have long since been vindicated, and there is a general consensus that what he did was absolutely right. Mr Ellsberg has strenuously defended Edward Snowden.

Hans-Christian Ströbele
Green party member of the German Bundestag

When I met Edward Snowden in Moscow in October 2013, he told me that he would eventually like to live in a country where democracy and the rule of law are respected. I can think of two ways to make that happen.

First, President Obama could pardon Snowden at the end of his last term, in the way other outgoing presidents have done in the past. Second, Snowden could be awarded the Nobel peace prize, which would bestow him a certain degree of immunity in the US even if he isn’t pardoned: during the cold war, for example, we saw that Soviet Union was unwilling to prosecute people who had been awarded with such an internationally recognised honour.

The key to both of these solutions doesn’t lie in our hands, but there is something we all can do. Like Oliver Stone’s new film, we can try to help emphasise that there is another side to Snowden’s story than the one that prevails in the US media: that this is a man with a lot of integrity, who did a great merit for the civil rights and privacy for the mankind and who knew what he was doing when making a extremely risky decision.

Cindy Cohn
Executive director of the Electronic Frontier Foundation

Whistleblower Edward Snowden’s disclosures provided powerful confirmation that the NSA was spying on the digital lives of hundreds of millions of innocent people, undermining digital security and attacking American companies. The leaks caused a sea change in policy and secrecy related to government spying that led to the first piece of legislation to rein in the NSA in over 30 years, reform to the secret Fisa court, and significant, long-overdue public releases of critical information by the government about its spying on innocent Americans as well as millions of others around the world.

The information he revealed was critical to starting a conversation about realigning a broken relationship between the intelligence community and the public. His motivations – and the impact of the leaks – were clearly to benefit the public and restore privacy and security to the internet.

The heavy price that the government seeks to exact – indicting him under the Espionage Act as if he had sold secrets to an enemy with no chance of explaining the broader public benefit – is wrong. Snowden’s behavior both before and after he brought this information to the media is that of a whistleblower who brought necessary public attention to a corrupt surveillance system still in need of further reform.

Mark Udall
Former US senator for Colorado and member of the select committee on intelligence

Strong oversight of our intelligence agencies is essential so the American people trust what they are doing to keep us safe. That trust was shaken when Edward Snowden disclosed the disconcerting truths about US surveillance that fueled my years-long effort, alongside Senator Wyden, to end the dragnet, warrantless collection of Americans’ communication records. Although Snowden’s actions aided my push for reform, the fact remains that Snowden broke an oath he willingly took to protect our national security and classified secrets.

I do not believe the president should pardon Snowden. You can make the case that he did our nation a service, and that is why I believe he should return to the United States to make that argument in court and to the public.

Ron Wyden
US senator for Oregon

I’m not going to sit in judgment on pending criminal charges, though I certainly don’t think there should be a double standard where defenders of particular programs can disclose classified information get and off scot-free, while critics of those programs go to prison.

I think it’s very clear that mass surveillance was never going to end until the public found out about it. That’s why I spent years urging the Bush and Obama administrations to begin this discussion with the public. I wish this debate had started earlier, but I’m glad it’s happening now.

Karen Greenberg
Director of the Center on National Security at Fordham University

What if there hadn’t been a Snowden? A program that violated the principles that this country holds dear may have continued to this day. A program that an appellate court in New York found illegal, that was so egregious in terms of law and civil liberties, may have continued or even been expanded.

Edward Snowden was immensely important and will only become more important as time goes on. Not only did he show the American public what was being done in their name and to them, he ended a program which, upon examination, national security and legal experts concluded did not work.

When considering whether or not he deserves to be pardoned, the president should remember that even former attorney general Eric Holder said that Snowden performed a public service. His revelations were the tidal wave the nation needed to change its ways. The importance of what he did for the country outweighs the law that he violated and the just move is a pardon for Edward Snowden.

Ladar Levison
Owner of webmail service Lavabit that he shut down in 2013 rather than comply with US government orders to facilitate spying on Snowden

Snowden has stated he would be willing to stand and be judged by a jury of peers, but doesn’t believe he would receive a fair trail. I believe the conduct I encountered proves his contention. The individuals responsible for investigating, prosecuting and adjudicating his actions have lied in court, ignored conflicts of interest and irrevocably tainted the evidence against him. I believe it amounts to prosecutorial misconduct.

The charges against Snowden should be dismissed with prejudice; just like the case against Daniel Ellsberg was dismissed. To quote Judge Byrne, from his decision in 1973: “The totality of the circumstances of this case offend a sense of justice.”

On the other hand, I think asking President Obama to pardon him is a lost cause. Snowden revealed misconduct by the very person who is being asked to grant him the pardon. If we were to petition anyone, it should be Congress, or possibly the four presidential candidates (Republican, Democratic, Libertarian, Green).

Lawrence Lessig
Law professor at Harvard Law School and former Democratic presidential candidate in 2016

There should be nothing less than a full pardon. The information that Snowden released to the public was critical: it made Americans aware of the way the law was being violated or at least subverted by unchecked government officials.

Then there was the manner in which he released the information. It was careful and limited, given the unresponsiveness he had experienced inside the NSA and from other branches of government.

Whistleblowing is an essential part of the architecture of checking government power. We’ve recognized the importance of whistleblowers in the past, and it’s entirely appropriate that Obama now recognizes the role that Snowden played in America in exposing the way in which extraordinary power was abused. Stewart Baker

Former general counsel of the National Security Agency

I am not in the “pardon Snowden” camp. And the longer he stays away, the fewer people will be in that camp.

In the early days after his leaks, Snowden was a bit of a paradox – a plausible, intelligent commentator who seemed to have done something that was irresponsible at best and actively hostile to US national security at worst. We were just not sure what to make of him.

But the public benefits of those leaks were spent within a week or two, as they spurred a genuine debate about surveillance. And it turned out they could have been achieved by leaking three or four documents.

In the years since then, the massive flood unleashed by Snowden has been used for one purpose only – to harm US intelligence and national interests by exposing perfectly legitimate intelligence sources and methods.

As the debate wanes, the ongoing harm to the United States remains front and center. So the longer he stays away the more he becomes, in reality and in perception, simply one of Putin’s tools. And a willing tool to boot, one suspects. That fact naturally casts a new and unflattering light on his deeds in 2013.

Salil Shetty
Secretary-general of Amnesty International

Edward Snowden clearly acted in the public interest. He sparked one of the most important debates about government surveillance in decades, and brought about a global movement in defence of privacy in the digital age. Punishing him for this sends out the dangerous message that those who witness human rights violations behind closed doors should not speak out.

It is ironic that it is Snowden who is being treated like a spy when his act of courage drew attention to the fact that the US and UK governments were illegally spying on millions of people without their consent.

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The Existential Madness of Putin-Bashing Print
Wednesday, 14 September 2016 08:37

Parry writes: "Official Washington loves its Putin-bashing but demonizing the Russian leader stops a rational debate about U.S.-Russia relations and pushes the two nuclear powers toward an existential brink."

President Vladimir V. Putin of Russia in March. (photo: Alexei Nikolsky)
President Vladimir V. Putin of Russia in March. (photo: Alexei Nikolsky)


The Existential Madness of Putin-Bashing

By Robert Parry, Consortium News

14 September 16

 

Official Washington loves its Putin-bashing but demonizing the Russian leader stops a rational debate about U.S.-Russia relations and pushes the two nuclear powers toward an existential brink, writes Robert Parry.

rguably, the nuttiest neoconservative idea – among a long list of nutty ideas – has been to destabilize nuclear-armed Russia by weakening its economy, isolating it from Europe, pushing NATO up to its borders, demonizing its leadership, and sponsoring anti-government political activists inside Russia to promote “regime change.”

This breathtakingly dangerous strategy has been formulated and implemented with little serious debate inside the United States as the major mainstream news media and the neocons’ liberal-interventionist sidekicks have fallen in line much as they did during the run-up to the disastrous invasion of Iraq in 2003.

Except with Russia, the risks are even greater – conceivably, a nuclear war that could exterminate life on the planet. Yet, despite those stakes, there has been a cavalier – even goofy – attitude in the U.S. political/media mainstream about undertaking this new “regime change” project aimed at Moscow.

There is also little appreciation of how lucky the world was when the Soviet Union fell apart in 1991 without some Russian extremists seizing control of the nuclear codes and taking humanity to the brink of extinction. Back then, there was a mix of luck and restrained leadership, especially on the Soviet side.

Plus, there were at least verbal assurances from George H.W. Bush’s administration that the Soviet retreat from East Germany and Eastern Europe would not be exploited by NATO and that a new era of cooperation with the West could follow the break-up of the Soviet Union.

Instead, the United States dispatched financial “experts” – many from Harvard Business School – who arrived in Moscow with neoliberal plans for “shock therapy” to “privatize” Russia’s resources, which turned a handful of corrupt insiders into powerful billionaires, known as “oligarchs,” and the “Harvard Boys” into well-rewarded consultants.

But the result for the average Russian was horrific as the population experienced a drop in life expectancy unprecedented in a country not at war. While a Russian could expect to live to be almost 70 in the mid-1980s, that expectation had dropped to less than 65 by the mid-1990s.

The “Harvard Boys” were living the high-life with beautiful women, caviar and champagne in the lavish enclaves of Moscow – as the U.S.-favored President Boris Yeltsin drank himself into stupors – but there were reports of starvation in villages in the Russian heartland and organized crime murdered people on the street with near impunity.

Meanwhile, Presidents Bill Clinton and George W. Bush cast aside any restraint regarding Russia’s national pride and historic fears by expanding NATO across Eastern Europe, including the incorporation of former Soviet republics.

In the 1990s, the “triumphalist” neocons formulated a doctrine for permanent U.S. global dominance with their thinking reaching its most belligerent form during George W. Bush’s presidency, which asserted the virtually unlimited right for the United States to intervene militarily anywhere in the world regardless of international law and treaties.

How Despair Led to Putin

Without recognizing the desperation and despair of the Russian people during the Yeltsin era — and the soaring American arrogance in the 1990s — it is hard to comprehend the political rise and enduring popularity of Vladimir Putin, who became president after Yeltsin abruptly resigned on New Year’s Eve 1999. (In declining health, Yeltsin died on April 23, 2007).

Putin, a former KGB officer with a strong devotion to his native land, began to put Russia’s house back in order. Though he collaborated with some oligarchs, he reined in others by putting them in jail for corruption or forcing them into exile.

Putin cracked down on crime and terrorism, often employing harsh means to restore order, including smashing Islamist rebels seeking to take Chechnya out of the Russian Federation.

Gradually, Russia regained its economic footing and the condition of the average Russian improved. By 2012, Russian life expectancy had rebounded to more than 70 years. Putin also won praise from many Russians for reestablishing the country’s national pride and reasserting its position on the world stage.

Though a resurgent Russia created friction with the neocon designs for permanent U.S. world domination, Putin represented a side of Russian politics that favored cooperation with the West. He particularly hoped that he could work closely with President Barack Obama, who likewise indicated his desire to team up with Russia to make progress on thorny international issues.

In 2012, Obama was overheard on an open mike telling Putin’s close political ally, then-President Dmitri Medvedev, that “after my election, I have more flexibility,” suggesting greater cooperation with Russia. (Because of the Russian constitution barring someone from serving more than two consecutive terms as president, Medvedev, who had been prime minister, essentially swapped jobs with Putin for four years.)

Obama’s promise was not entirely an empty one. His relationship with the Russian leadership warmed as the two powers confronted common concerns over security issues, such as convincing Syria to surrender its chemical-weapons arsenal in 2013 and persuading Iran to accept tight limitations on its nuclear program in 2014.

In an extraordinary op-ed in The New York Times on Sept. 11, 2013, Putin described his relationship with Obama as one of “growing trust” while disagreeing with the notion of “American “exceptionalism.” In the key last section that he supposedly wrote himself, Putin said:

“My working and personal relationship with President Obama is marked by growing trust. I appreciate this. I carefully studied his address to the nation on Tuesday. And I would rather disagree with a case he made on American exceptionalism, stating that the United States’ policy is ‘what makes America different. It’s what makes us exceptional.’

“It is extremely dangerous to encourage people to see themselves as exceptional, whatever the motivation. There are big countries and small countries, rich and poor, those with long democratic traditions and those still finding their way to democracy. Their policies differ, too. We are all different, but when we ask for the Lord’s blessings, we must not forget that God created us equal.”

Offending the Neocons

Though Putin may have thought he was simply contributing to a worthy international debate in the spirit of the U.S. Declaration of Independence’s assertion that “all men are created equal,” his objection to “American exceptionalism” represented fighting words to America’s neocons.

Instead of engaging in mushy multilateral diplomacy, muscular neocons saw America as above the law and lusted for bombing campaigns against Syria and Iran – with the goal of notching two more “regime change” solutions on their belts.

Thus, the neocons and their liberal-interventionist fellow-travelers came to see Putin as a major and unwelcome obstacle to their dreams of permanent U.S. dominance over the planet, which they would promote through what amounted to permanent warfare. (The main distinction between neocons and liberal interventionists is that the former cites “democracy promotion” as its rationale and the latter justifies war under the mantle of “humanitarianism.”)

Barely two weeks after Putin’s op-ed in the Times, a prominent neocon, Carl Gershman, the longtime president of the U.S.-government-funded National Endowment for Democracy, issued what amounted to a rejoinder in The Washington Post on Sept. 26, 2013.

Gershman’s op-ed made clear that U.S. policy should take aim at Ukraine, a historically and strategically sensitive country on Russia’s doorstep where the Russian nation made a stand against the Tatars in the 1600s and where the Nazis launched Operation Barbarossa, the devastating 1941 invasion which killed some 4 million Soviet soldiers and led to some 26 million Soviet dead total.

In the Post, Gershman wrote that “Ukraine is the biggest prize,” but made clear that Putin was the ultimate target: “Ukraine’s choice to join Europe will accelerate the demise of the ideology of Russian imperialism that Putin represents. Russians, too, face a choice, and Putin may find himself on the losing end not just in the near abroad but within Russia itself.”

To advance this cause, NED alone was funding scores of projects that funneled hundreds of thousands of dollars to Ukrainian political activists and media outlets, creating what amounted to a shadow political structure that could help stir up unrest when the Ukrainian government didn’t act as desired, i.e., when elected President Viktor Yanukovych balked at a European economic plan that included cuts in pensions and heat subsidies as demanded by the International Monetary Fund.

When Yanukovych sought more time to negotiate a less onerous deal, U.S.-backed protests swept into Kiev’s Maidan square. Though representing genuine sentiment among many western Ukrainians for increased ties to Europe, neo-Nazi and ultra-nationalist street fighters gained control of the uprising and began firebombing police.

Despite the mounting violence, the protests were cheered on by neocon Sen. John McCain, U.S. Ambassador Geoffrey Pyatt and Assistant Secretary of State for Europe Victoria Nuland, the wife of neocon stalwart Robert Kagan, a co-founder of the Project for the New American Century, which was a major promoter of the U.S. invasion of Iraq.

In a speech to Ukrainian business leaders on Dec. 13, 2013, Nuland reminded them that the United States had invested $5 billion in their “European aspirations.” By early February 2014, in an intercepted phone call, she was discussing with Pyatt who should lead a new government – “Yats is the guy,” she declared referring to Arseniy Yatsenyuk. Nuland and Pyatt continued the conversation with exchanges about how to “glue this thing” or “midwife this thing,” respectively.

A Western-backed Putsch

The violence worsened on Feb. 20, 2014, when mysterious snipers opened fire on police and demonstrators sparking clashes that killed scores, including police officers and protesters. Though later evidence suggested that the shootings were a provocation by the neo-Nazis, the immediate reaction in the mainstream Western media was to blame Yanukovych.

Though Yanukovych agreed to a compromise on Feb. 21 that would reduce his powers and speed up new elections so he could be voted out of office, he was still painted as a tyrannical villain. As neo-Nazi and other rightists chased him and his government from power on Feb. 22, the West hailed the unconstitutional putsch as “legitimate” and a victory for “democracy.”

The coup, however, prompted resistance from ethnic Russian areas of Ukraine, particularly in the east and south. With the aid of Russian troops who were stationed at the Russian naval base in Sevastopol, the Crimeans held a referendum and voted by 96 percent to leave Ukraine and rejoin the Russian Federation, a move accepted by Putin and the Kremlin.

However, the West’s mainstream media called the referendum a “sham” and Crimea’s secession from Ukraine became Putin’s “invasion” – although the Russian troops were already in Crimea as part of the basing agreement and the referendum, though hastily organized, clearly represented the overwhelming will of the Crimean people, a judgment corroborated by a variety of subsequent polls.

Ethnic Russians in eastern Ukraine also rose up against the new regime in Kiev, prompting more accusations in the West about “Russian aggression.” Anyone who raised the possibility that these areas, Yanukovych’s political strongholds, might simply be rejecting what they saw as an illegal political coup in Kiev was dismissed as a “Putin apologist” or a “Moscow stooge.”

While Official Washington and its mainstream media rallied the world in outrage against Putin and Russia, the new authorities in Kiev slipped Nuland’s choice, Yatsenyuk, into the post of prime minister where he pushed through the onerous IMF “reforms,” making the already hard lives of Ukrainians even harder. (The unpopular Yatsenyuk eventually resigned his position.)

Despite the obvious risks of supporting a putsch on Russia’s border, the neocons achieved their political goal of driving a huge wedge between Putin and Obama, whose quiet cooperation had been so troublesome for the neocon plan for violent “regime change” in Syria and Iran.

The successful neocon play in Ukraine also preempted possible U.S.-Russian cooperation in trying to impose an Israeli-Palestinian peace agreement that would have established a Palestinian state and would have stymied Israel’s plans for gobbling up Palestinian territory by expanding Jewish settlements and creating an apartheid-style future for the indigenous Arabs, confining them to a few cantons surrounded by de facto Israeli territory.

Obama’s timid failure to explain and defend his productive collaboration with Putin enabled the neocons to achieve another goal of making Putin an untouchable, a demonized foreign leader routinely mocked and smeared by the mainstream Western news media. Along with Putin’s demonization, the neocons have sparked a new Cold War that will not only extend today’s “permanent warfare” indefinitely but dramatically increase its budgetary costs with massive new investments in strategic weapons.

Upping the Nuclear Ante

By targeting Putin and Russia, the neocons have upped the ante when it comes to their “regime change” agenda. No longer satisfied with inflicting “regime change” in countries deemed hostile to Israel – Iraq, Syria, Libya, Iran, etc. – the neocons have raised their sights on Russia.

In that devil-may-care approach, the neocons are joined by prominent “liberal interventionists,” such as billionaire currency speculator George Soros, who pulls the strings of many “liberal” organizations that he bankrolls.

In February 2015, Soros laid out his “Russia-regime-change” vision in the liberal New York Review of Books with an alarmist call for Europe “to wake up and recognize that it is under attack from Russia” – despite the fact that it has been NATO encroaching on Russia’s borders, not the other way around.

But Soros’s hysteria amounted to a clarion call to his many dependents among supposedly independent “non-governmental organizations” to take up the goal of destabilizing Russia and driving Putin from office. As a currency speculator, Soros recognizes the value of inflicting economic pain as well as military punishment on a target country.

“The financial crisis in Russia and the body bags [of supposedly Russian soldiers] from Ukraine have made President Putin politically vulnerable,” Soros wrote, urging Europe to keep up the economic pressure on Russia while working to transform Ukraine into an economic/political success story, saying:

“…if Europe rose to the challenge and helped Ukraine not only to defend itself but to become a land of promise, Putin could not blame Russia’s troubles on the Western powers. He would be clearly responsible and he would either have to change course or try to stay in power by brutal repression, cowing people into submission. If he fell from power, an economic and political reformer would be likely to succeed him.”

But Soros recognized the other possibility: that a Western-driven destabilization of Russia and a failed state in Ukraine could either bolster Putin or lead to his replacement by an extreme Russian nationalist, someone far-harder-line than Putin.

With Ukraine’s continued failure, Soros wrote, “President Putin could convincingly argue that Russia’s problems are due to the hostility of the Western powers. Even if he fell from power, an even more hardline leader like Igor Sechin or a nationalist demagogue would succeed him.”

Yet, Soros fails to appreciate how dangerous his schemes could be to make Russia’s economy scream so loudly that Putin would be swept aside by some political upheaval. As Soros suggests, the Russian people could turn to an extreme nationalist, not to some pliable Western-approved politician.

Protecting Mother Russia

Especially after suffering the depravations of the Yeltsin years, the Russian people might favor an extremist who would take a tough stance against the West and might see brandishing the nuclear arsenal as the only way to protect Mother Russia.

Still, Official Washington can’t get enough of demonizing Putin. A year ago, Obama’s White House – presumably to show how much the President disdains Putin, too – made fun of how Putin sits with his legs apart.

White House spokesman Josh Earnest cited a photo of the Russian president sitting next to Israeli Prime Minister Benjamin Netanyahu. “President Putin was striking a now-familiar pose of less-than-perfect posture and unbuttoned jacket and, you know, knees spread far apart to convey a particular image,” Earnest said, while ignoring the fact that Netanyahu was sitting with his legs wide apart, too.

Amid this anything-goes Putin-bashing, The New York Times, The Washington Post and now Hillary Clinton’s campaign have escalated their anti-Putin rhetoric, especially since Republican presidential nominee Donald Trump has offered some praise of Putin as a “strong” leader.

Despite the barrage of cheap insults emanating from U.S. political and media circles, Putin has remained remarkably cool-headed, refusing the react in kind. Oddly, as much as the American political/media establishment treats Putin as a madman, Official Washington actually counts on his even-temper to avoid a genuine existential crisis for the world.

If Putin were what the U.S. mainstream media and politicians describe – a dangerous lunatic – the endless baiting of Putin would be even more irresponsible. Yet, even with many people privately realizing that Putin is a much more calculating leader than their negative propaganda makes him out to be, there still could be a limit to Putin’s patience.

Or the neocons and liberal hawks might succeed in provoking a violent uprising in Moscow that ousts Putin. However, if that were to happen, the odds – as even Soros acknowledges – might favor a Russian nationalist coming out on top and thus in control of the nuclear codes.

In many ways, it’s not Putin who should worry Americans but the guy that might follow Putin.



Investigative reporter Robert Parry broke many of the Iran-Contra stories for The Associated Press and Newsweek in the 1980s. You can buy his latest book, America’s Stolen Narrative, either in print here or as an e-book (from Amazon and barnesandnoble.com).

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A Muslim Woman Was Set on Fire in New York. Now Just Going Out Requires Courage Print
Wednesday, 14 September 2016 08:29

Sarsour writes: "Muslim American communities are facing the most hostile civic and political environment since days, weeks and months after 9/11. Hate crimes against Muslims or those perceived to be Muslim has risen exponentially in the last year."

'All people of faith, Muslims included, should be able to practice their religion freely.' (photo: Spencer Platt/Getty Images)
'All people of faith, Muslims included, should be able to practice their religion freely.' (photo: Spencer Platt/Getty Images)


A Muslim Woman Was Set on Fire in New York. Now Just Going Out Requires Courage

By Linda Sarsour, Guardian UK

14 September 16

 

We are facing the most hostile environment since the immediate aftermath of 9/11. All Americans must speak out otherwise there will be worse to come

ach year, I look so forward to Eid Al Adha – the holiest holiday for Muslims worldwide – but not this year. As I watched my daughters prepare for the celebrations with joy, I learned of a horrific crime. A 36-year-old woman dressed in traditional garb was set on fire on Fifth Avenue in Manhattan. She was the same age as me, walking in the city where I was born and raised. This comes at the heels of two Muslim women in Brooklyn who were physically assaulted by a woman as they pushed their babies in strollers.

As if this news wasn’t enough, we also learned that a mosque in Fort Pierce, Florida, which Omar Mateen reportedly used to visit, had been set on fire. They had to cancel their planned holiday celebrations as a result. How could I enjoy the day without thinking of them? Instead of celebrating as planned, the community in Florida has to explain to their children why someone would intentionally set their place of worship, their sanctuary, on fire the night before the highest holy holiday.

These horrific acts follow the execution style murders of an imam and his assistant in Ozone Park, and the stabbing of a 60-year old Muslim woman in Queens. These are only the stories that make the headlines. I don’t think we know the extent of the impact, trauma and pain of Muslim communities nationwide.

Muslim Americans found themselves caught in a conversation about how close Eid Al Adha was to the 15th anniversary of 9/11. Pundits wondered whether Muslims would alter their annual Eid celebrations for sensitivity purposes. This insinuation both disappointed and outraged me. Muslims, like any other faith community, deserve to be Muslim, and celebrate their high holy holidays. We would never ask that of any other faith community and it should never be asked or implied to Muslim Americans.

Muslim American communities are facing the most hostile civic and political environment since days, weeks and months after 9/11. Hate crimes against Muslims or those perceived to be Muslim has risen exponentially in the last year. All people of faith, Muslims included, should be able to practice their religion freely without fear and intimidation. Bigotry against Muslims has become the norm and often has no consequences. The irresponsible and rhetorical vilification of Muslims in this current election cycle is leading to violent acts against members of a faith community and it must stop.

It is time for all Americans to speak out. When we allow one faith community to be targets then we open the doors for others to be targeted. I believe the worst is yet to come unless more people actively intervene with their voices, their votes and in public acts of solidarity with their Muslim neighbors. In a time of growing tensions we must uphold our fundamental freedom to worship in the land of religious freedom and its why I choose to be unapologetically Muslim every day. As a Muslim woman, not only is wearing my religious headscarf in public an act of faith, but it has become an act of courage.

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Puerto Rico's One-Sided Class War Print
Wednesday, 14 September 2016 08:21

Delgado-Martí writes: "The financial crisis of the central government is, at its root, the most recent and evident symptom of hundreds of years of colonialism."

A protest for employment and workers' rights in San Juan, Puerto Rico in 2009. (photo: Pablo Delano)
A protest for employment and workers' rights in San Juan, Puerto Rico in 2009. (photo: Pablo Delano)


Puerto Rico's One-Sided Class War

By Hugo J. Delgado-Martí, Jacobin

14 September 16

 

Puerto Ricans are suffering from intense exploitation and a lack of democratic control over the island’s wealth.

uerto Rico — a group of islands in the center of the Caribbean and a colony of the United States since 1898 — has recently come to the attention of the United States Congress due to its inability to pay over $72 billion dollars in public debt.

The passage of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) in June — which established a seven-member federal oversight board to supervise the island government — did more than just demonstrate Puerto Rico’s lack of sovereignty. It also opened the door to the imposition of extreme austerity measures on a territory already hard-hit by a decade-long recession.

The oversight board has one priority — to ensure that Puerto Rico makes good on its obligations to its creditors, many of whom are private American investors.

The Investors’ Colony

Of course, the oversight board won’t do or say much about the social effects of the crisis — like the disappearance of nearly three hundred thousand jobs, the steep loss of population due to emigration, and the ongoing foreclosure crisis that affects thousands of ordinary Puerto Ricans. Nor will it accurately diagnose the problem — what’s really going on in Puerto Rico is an intensification of the level of exploitation, both of the workforce and of natural resources.

This intensified exploitation has taken many forms — layoffs; the expansion of low-wage part-time work; the privatization of social services; and the dismantling of the welfare state, to name a few.

Political elites justify austerity by appealing to the government financial crisis and the public debt default, and cutbacks are enforced by the receivership of public authorities and the destruction of the Puerto Rico Development Bank. But the beginnings of Puerto Rico’s predicament go way beyond the current crisis.

The financial crisis of the central government is, at its root, the most recent and evident symptom of hundreds of years of colonialism. Nowadays, talk about the colonial status of Puerto Rico is commonplace. But in some ways, the word “colony” has been deprived of its meaning.

The commonplace definition of the term defines a colony as a territory that does not hold sovereign power over itself — instead, it is accountable to decisions made elsewhere, generally in imperial centers. But this definition of the term puts a heavy emphasis on the legal and formal aspects of the colonial relationship.

Based on this definition, statehood can be interpreted as a solution to the colonial problem. As members of the fifty-first state, Puerto Ricans would participate in the selection of the president, enjoy congressional representation, and participate fully in the political charade of Washington DC.

But while the lack of sovereignty is one aspect of colonialism, it is not the only one. Although many on the island want to achieve statehood, becoming a state might only entrench and tighten the colonial relationship even further.

Colonialism in Puerto Rico has always had a concrete economic meaning — enormous amounts of wealth have been produced in the colony over the last 118 years, but that wealth has vacated the island as quickly as it has been produced. That pattern continues today.

Where’s the Money?

Net capital investments in fixed assets in Puerto Rico averaged $11 billion per year between 2000 and 2014, amounting to a total of $176 trillion. That investment returned well over $1.1 trillion during the same time period — but less than $410 billion went toward employee compensation. The rest was profit.

The profit rate in the manufacturing sector is even more revealing: out of the $538 billion generated by manufacturing in those fourteen years, only $40 billion were paid to employees.

In other words, workers earned less than 8 percent of the wealth generated. While the manufacturing sector has increased its profits by a huge percentage since the 1990s, worker salaries have invariably fallen or remained the same.

To make matters worse, corporations paid under $30 billion dollars in taxes to the so-called “commonwealth” during that 2000-2014 time span. But taxes collected from individuals during that time period sum $38 billion, not including an additional $28 billion in excise taxes and another $5 billion since 2007 as sales tax.

These taxes all tend to hit the poor the hardest by increasing the cost of goods and therefore reducing the purchasing power of the labor force. At the same time, Sila Maria Calderón, the first female governor of the island, actually reduced the corporate tax burden in the early 2000s by lowering tax rates on profit returned to the mainland United States.

In effect, working people pay to maintain the state, while foreign corporations profit from Puerto Rico’s human and natural resources.

Puerto Rico’s dismal employment record paints an even bleaker picture of economic prospects on the island. In 2000, less than one million people had jobs, out of a working-age population of 2.8 million.

Employment peaked in 2007 — 1.2 million employed out of a working-age population of 2.9 million. Since then, the population of eligible workers has been estimated to be decreasing at a rate of six thousand persons per year. And unemployment has increased in recent years as the economic depression has worsened.

In 2014 only 995,000 Puerto Rican workers were employed. That’s a net loss of 269,000 jobs in seven years — and if we take into account that low-wage workers often hold multiple jobs (and so may be counted twice, or even three times) the situation could be even worse. Circumstances are especially dire for women workers — the only population group with a majority employed are middle-aged male workers.

Work in manufacturing has especially taken a major hit. Manufacturing jobs peaked at 172,000 jobs in 1995 — when Section 936, a tax credit for American businesses with operations in Puerto Rico, was being dismantled by Congress.

That number fell to 86,000 in 2014, a net loss of half the total manufacturing jobs. The trend continues — in March of this year, there were only 72,000 manufacturing jobs in Puerto Rico.

An Exploiter’s Paradise

But even during extreme recessions, some still accumulate wealth. The question is — who?

In Puerto Rico, personal financial assets more than doubled between 2000 and 2014. But personal debt has also increased from $17 billion to $23 billion in those fourteen years, and bankruptcy filings doubled between 2006 and 2014.

The banking sector has consolidated at an extreme rate. In 1996 there were twenty banking institutions in Puerto Rico, but today all capital is concentrated in just six banks.

So although total assets in banks fell from $96 billion in 2005 to $55 billion ten years later, we shouldn’t fall for the crocodile tears flooding la milla de oro — Puerto Rico’s financial district. In that same ten-year time-span, Banco Popular went from $13 billion in assets to $22 billion, and became the island’s leading financial institution.

And in the past year, Citibank surpassed Popular as the leading institution when its assets increased from $11 billion to $26 billion — likely thanks to the tax-haven laws the current governor enacted for the benefit of billionaires.

Combined with massive job loss, declining wages, and the debt crisis of the state, all this suggests that Puerto Rico is suffering the consequences of an international crisis of capitalism.

The state has an important function within contemporary capitalist society — to guarantee the necessary conditions for the reproduction of capital. The state accomplishes this by building and maintaining the physical infrastructure companies need to operate. The state also provides the resources to maintain the workforce by working to ensure health care, education, and housing.

The current situation is like a never-ending slide — the economy keeps sinking with no end in sight. A smaller, less productive workforce makes for a smaller base of tax revenue for the state, while the increases in the cost of living put high stress on the government to fulfill its obligations.

A state — particularly a colonial state — has to maintain social order and political stability to provide a welcoming environment to foreign corporations. Food stamps, public health insurance, and even forced emigration become pressure release mechanisms that — when combined with police repression and property protection — turn the island into an exploiter’s paradise.

This is not the first time Puerto Rico has seen a situation like this. In the past, only massive capital investments from the US government and multinational corporations could save the day — but of course these investments also drove new tides of colonial exploitation.

Faced with the current conditions, Puerto Rico had to mortgage itself. Now, public debt has reached over $72 billion dollars — and if the government’s internal debt is added to the balance sheet, this figure could triple.

Forty Years of Austerity

Austerity and the neoliberal agenda have been present in Puerto Rican politics since the late 1970s, when Carlos Romero Barceló of the New Progressive Party (PNP) privatized the first set of public hospitals and enacted tuition hikes in the University of Puerto Rico (UPR). Since then, Puerto Rico’s working class has experienced a sustained attack on its rights and working conditions.

After the worst years of Romero’s so-called “spider government” during the 1980s, Rafael Hernández Colón was elected. He continued the assault on public services by privatizing the Puerto Rico Merchant Marine Authority (Navieras) and the international calls branch of the Puerto Rico Telephone Company.

Next, Governor Pedro Roselló González upped the ante by attempting to enact the neoliberal agenda in full — after his push to privatize public schools was defeated by the teachers union, he privatized all the public hospitals on the island.

Nevertheless, a one-day teachers’ strike in 1993 marked a significant victory for the anti-austerity movement, managing to force significant amendments to the “community schools law” which attempted to create the basis for charter schools. The amended law — which grants community control over public schools — has been under constant attack since its passage, and its most progressive aspects have never been fully implemented.

The twentieth century closed with the last great stand against privatization in Puerto Rico — the strike against the sale of the Puerto Rico Telephone Company. This “people’s strike” reached beyond the immediately affected phone workers to unite many Puerto Ricans behind common political demands. But in the end, the strike was defeated. The Puerto Rico Telephone Company was privatized.

Soon after, state retaliation intensified. In 1999, Law 45 granted public sector workers the right to organize and bargain collectively, but prohibited strikes. Far from strengthening Puerto Rican unions, the law was used to tame union militancy.

Under the terms of the new law, almost any type of worker resistance could be said to have an adverse effect on public services — which made unions vulnerable to decertification by the state. Even picket lines during lunch time were forbidden by some unions.

To make matters worse, in 2002 the government launched an attack on the independent teachers’ union — the Puerto Rico Teachers Federation (FMPR) — with the support of its longtime rival, the American Federation of Teachers (AFT). The government dismantled the FMPR’s health plan, citing an overdrawn balance sheet, lack of liquidity, and bad administrative practices.

The next year, rank-and-file teachers responded by electing new, more radical union leadership. But even with this new leadership, the FMPR was unable to successfully resist the attacks from the AFT and the colonial justice system.

Workers at the Puerto Rico Energy and Power Authority (PREPA) were the next to come under fire, as the government began purchasing energy from two private power-generating enterprises that had recently entered the market.

Privatization had wide-ranging effects at PREPA — full-time repair and construction workers were replaced by subcontractors; administrative and commercial duties were assigned to Banco Popular; and corrupt officials drove the authority even deeper into debt.

Today, the Electrical Industry and Irrigation Workers Union (UTIER) — once one of Puerto Rico’s most powerful and respected unions — suffers from a diminished workforce and a demobilized rank and file. Years of repeating “the best strike is the one that never comes” have destroyed the union’s will to fight, and, in the absence of political organization, class consciousness is almost nonexistent.

This assault on the working class intensified in 2004 with the election of Governor Anibal Acevedo Vilá, who attacked unions and dismantled social protections in an attempt to protect those who financed his campaign from the now-foreseeable collapse of commonwealth finances.

Within days of his taking office, Acevedo hiked tuition at the public university, a move that was met with resistance from the small but highly politicized student movement. But Acevedo’s Popular Democratic Party (PDP) was able to successfully forge an alliance with ruling-class nationalists and independence advocates, putting the party on good footing to absorb or defeat any groundswell of working-class struggle that might emerge.

One-Sided Class War

Increases in the cost of water, power, and basic consumer goods were followed by the establishment of a sales tax in 2007, in order to create the Puerto Rico Urgent Interest Fund Corporation (COFINA) — a new fund set up to issue investment bonds as a way to refinance the public debt.

Many were opposed to the new tax, which would hit poor Puerto Ricans the hardest. Still, a popular movement in favor of the Sales and Services Tax emerged. But the movement — known as “el pueblo grita,” or “the people shout” — was really organized by the media and a few of the AFL-CIO unions — or, as we like to call them in Puerto Rico, “chupacuotas” (“quota-suckers”).

So the governor — facing a hostile Congress but determined to pass the new tax — used public workers as the cue ball in a game of political pool. He closed the Department of Education for two weeks, citing concern about the public debt.

The FMPR didn’t have the strength to respond — unable to protest, many teachers ran to the unemployment offices and began collecting food stamps. Still, a small group of teachers and students fought back by organizing civil disobedience and street resistance. In the end, schools reopened and teachers were paid, but the governor was able to successfully push the unpopular sales tax through congress.

That process laid the groundwork for the 2008 teachers’ strike. The FMPR had begun negotiating their new collective bargaining agreement in 2005. But the negotiations stalled when the union ran up against the government agenda — to privatize schools and reduce the size of the Department of Education.

In response, The FMPR began preparing to strike, working to build widespread support for the union among ordinary Puerto Ricans. Support for the teachers grew with each passing moment. But then the union was decertified in January 2008, two months before the strike was scheduled to begin.

Today the FMPR is fighting for survival — once the largest working-class force in Puerto Rico, after years of attrition it now represents only two thousand of Puerto Rico’s thirty thousand teachers. Although the FMPR strike was defeated, the example set by the teachers continues to inspire resistance as students and workers find new ways to push back against the neoliberal assault on their living standards.

Anti-Austerity, Anticolonial

Everyday life in Puerto Rico has become increasingly political. The day-to-day discussion in the media is about the economy, bonds, unemployment, and the distribution of wealth. And although the media is highly biased towards colonial capitalist ideology, there remain some dissident voices to be heard.

The Puerto Rican Independence Party (PIP) and the Working People Party (PPT) will each go into November’s gubernatorial election with an anti-austerity agenda. But neither can offer a perfect solution to Puerto Rico’s ongoing crisis. And since PROMESA established a federal oversight board to supervise the actions of the elected government, neither party can even guarantee that they’ll actually be able to fulfill their platform promises.

Of the two, the PIP presents the situation a bit better — their position holds that colonialism is the root cause of Puerto Rico’s crisis, and only in independence can we seek to solve the problems that haunt us. The PPT, on the other hand, aims to rebuild the benefactor state with neo-Keynesian economic reforms, but evades the so-called “commonwealth question” by advocating a popular referendum on independence, but declining to take a firm position.

The PPT’s view is full of contradictions, since opposing colonialism without presenting an alternative other than a referendum or a constituent assembly fails to answer the question of how to solve the crisis definitively.

Still, independence is not enough. A radical democratic state — committed to finding collective solutions and placing real power in the hands of the working -class majority — is the best way to solve not only the colonial crisis, but all the problems afflicting Puerto Rico.

Nonetheless, principled anticolonialism is extremely relevant to the anti-austerity struggle, and mounting a meaningful challenge to austerity often means also confronting Washington’s colonial influence over San Juan.

For example, even in a situation as specific as public school administration, the outsized influence of United States policy — and the inability of local authorities to influence or circumvent it — poses severe problems for reformers. It is no secret that Puerto Rican public schools have lost the little prestige they had during the last sixteen years. Teachers are demoralized, students don’t believe in their schools, and parents have lost their faith.

In large part, this a legacy of the No Child Left Behind Act. Since Washington imposed this destructive legislation on Puerto Rico, corruption has increased while education has deteriorated and more and more school services are privatized — and the island has no way of amending or repealing the law.

Which Way From Here?

I don’t claim great powers of foresight. But some things are as predictable as telenovelas.

Public-sector workers in Puerto Rico have been expecting a lockout for some time, but so far the government has managed to delay taking that step. Still, the government will run out of money at some point, and a government lockout of public workers could become the basis for intensifying social unrest.

The economic effects of such a lockout will be catastrophic. Emigration will increase even further, as will crimes against property — and that will have an effect on investments, as a larger fraction of the island’s scarce capital resources will be diverted to private security.

Organized labor has to recognize the political situation it is in: there are no technical solutions that could separately guarantee the security of each sector of the workforce. Only by developing a political working-class movement with class demands can we stop — or at least slow down — the attacks on our standard of living.

Frankly, people don’t care if it’s a foreign control board or a local law that implements austerity — they care about the negative effects austerity measures will have on their lives. Those negative effects are what we should be fighting against.

What we need in Puerto Rico is a mass movement that goes beyond organized labor. If the situation right now has shown itself clearly to be a political one, the answer has to be political also. Technical solutions only suggest imposing austerity on one or other branch of the working class.

Unions and political organizations have to recognize the structural changes in the working class and adapt to them. We need another peoples’ strike or mass movement — such as the struggle to remove the US Navy base in Vieques, the 2010 student strike, or the 1999 Telephone Company strike. We have to recognize those events for what they were: small, local struggles that became the igniting sparks of much larger movements.

Today, there are at least two social groups with the potential to become sparks that ignite larger movements in Puerto Rico. First, university students have often been among the most militant participants in Puerto Rican protest movements. And in the current moment — during which college-educated young people must face the choice to either leave the island or to accept precarity and underpayment at home — they are natural opponents of austerity.

Second, teachers, though weakened by the defeats they’ve suffered, still have a lot of political strength. And they haven’t received a single salary increase in over eight years.

Of course, organizing a movement with its own specific demands that is also conscious of the larger issues is not an easy task. Anti-austerity forces in Puerto Rico must maintain a double focus. It’s not enough to answer only the immediate questions — we must also think in the long term, asking, what could solve the problems that persist in Puerto Rico?

As one first priority, we must fight to implement a minimal program that can at least help us rebuild a politicized working-class movement.

Left political organizations have formed a small but relevant alliance against the oversight board, choosing civil disobedience and direct action as their means of struggle. Besides the obvious opposition to the oversight board they have come up with some general demands against austerity and colonialism — including steps towards effective decolonization and radical democracy; a constitutional referendum to vote on whether to pay the debt or default; a full audit of the debt; and a tax on the rich, particularly on the corporate and banking sectors.

The Workers’ Socialist Movement (MST) has proposed a few other demands that may go even deeper into solving the problem — an end to ongoing privatizations; the reversal of as many privatizations as possible; an economic recovery program that emphasizes diverse and technologically advanced agriculture; a universal health care system and universal pension fund;  income-adjusted tuition rates at public universities; a moratorium on foreclosures; the seizure of any excess housing inventory held by banks; and the protection of basic goods produced on the island.

Many — if not all — of these demands may call into question the colonial status of Puerto Rico. But that is precisely the point. Without a fighting anti-austerity movement, Puerto Rico will continue to fall victim to the one-sided class war waged by its creditors and the United States government. And in Puerto Rico, especially since the passage of PROMESA, an effective anti-austerity movement must also confront the colonial roots of the debt crisis.

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