Tag Archive: economic


Paying the Price: Killing the Children of Iraq
An analysis of the effect of economic sanctions on Iraq –
A film by John Pilger

A poll conducted by ComRes last year asked people in Britain how many Iraqis had been killed as a result of the 2003 invasion. A majority said that fewer than 10,000 had been killed: “a figure so shockingly low it was a profanity”, commented John Pilger, in an article in the Guardian this month.

John Pilger continued: “I compared this with scientific estimates of up to a million men, women and children who had died in the inferno lit by Britain and the US. In fact, academic estimates range from less than half a million to more than a million. John Tirman, the principal research scientist at the MIT Centre for International Studies, has examined all the credible estimates; he told me that an average figure suggests roughly 700,000. Tirman pointed out that this excluded deaths among the millions of displaced Iraqis, up to 20% of the population.

The VOAG reported in March 2010 on two studies exploring civilian deaths as a result of the invasion of Iraq. One study by Opinion Research Business, on behalf of  New Scientist estimated 1.2 million people had died. A second study conducted by Dr Burnham of Johns Hopkins University, on behalf of The Lancet, Organ of the British Medical Association, estimated that a million people had died as a result of the invasion and occupation of Iraq.

These figures were complied in 2006, and updates in 2010 revised these figures to between 1.2 and 1.6 million deaths. With a pre-war population of 22.5 million, it means that as of 2010 one in nineteen Iraqis 1/19 has been murdered by the coalition. A further 20% of the population (One in five) have been made homeless. When General Franks, the US Comander of the Coalition was confronted with these figures he famously said: “We don’t do body counts”.

These death rates are based on statistical data. They are not confined to direct violent deaths, but all deaths; deaths through disease and loss of infrastructure for example. All ‘extra deaths’ over and above what the levels would have been, had there not been an invasion.

The “shock and awe” of 1993 and the subsequent occupation of Iraq was the extension of a murderous blockade imposed for 13 years by Britain and the US. Its results were suppressed by much of the mainstream media. Half a million Iraqi infants died as a result of sanctions, according to Unicef.; with children dying in hospitals, denied basic painkillers.

John Pilger’s article concluded: “Ten years later, in New York, I met the senior British official responsible for these “sanctions”. He is Carne Ross, once known in the UN as “Mr Iraq”. I read to him a statement he had made to a parliamentary select committee in 2007: “The weight of evidence clearly indicates that sanctions caused massive human suffering among ordinary Iraqis, particularly children. We, the US and UK governments, were the primary engineers and offenders of sanctions and were well aware of the evidence at the time but we largely ignored it and blamed it on the Saddam government, effectively denying the entire population the means to live.” I said to him: “That’s a shocking admission.”

“Yes, I agree,” he replied. “I feel ashamed about it …” He described how the Foreign Office manipulated a willing media. “We would control access to the foreign secretary as a form of reward to journalists. If they were critical, we would not give them the goodies of trips around the world. We would feed them factoids of sanitised intelligence, or we’d freeze them out.”

In the build-up to the 2003 invasion, according to studies by Cardiff University and Media Tenor, the BBC followed the Blair government’s line and lies, and restricted airtime to those opposing the invasion. When Andrew Gilligan famously presented a dissenting report on Today, he and the director general were crushed.

The truth about the criminal bloodbath in Iraq cannot be “countered” indefinitely. Neither can the truth about our support for the medievalists in Saudi Arabia, the nuclear-armed predators in Israel, the new military fascists in Egypt and the jihadist “liberators” of Syria, whose propaganda is now BBC news. There will be a reckoning – not just for the Blairs, Straws and Campbells, but for those paid to keep the record straight.


For More On Iraq:
Focus On Iraq: The War Continues (January 2011)
Latest On The Iraq Occupation (March 2010)
Civilian Death Toll In Iraq And Afghanistan (March 2010)The Voag

Storm The Banks

Three Short Essays On The Crises

The Voag was checking out the news today and came across these three articles, which we figured were worth reposting. 

These essays have been republished without permission. 

Bond Markets Have The United States In Their Sights

Gerry Gold, 20 April 2011
Assessing the significance of credit rating agency Standard & Poor’s historic decision to downgrade the debt outlook for the USA is complex. But significant it definitely is. S&P and Moody’s, which between them control 80% of the rating market, act as intelligence gatherers and forecasters on behalf of capitalist investors. They examine relevant aspects of an institutional issuer of debt – usually a corporate entity or a state body – and assess the risk to an investor of placing their money with that institution.

The higher the risk, the more the issuer of debt has to pay to the investor in interest or “yield”, and consequently, the more the corporation has to make from its operations, or in the case of a state, the more it has to extract from its citizens in taxes. So, you might say, the increasing burden being placed on the populations of effectively bankrupt countries like Ireland and Greece is largely on the say-so of these agencies.

Like all these agencies, S&P is a competitive, for-profit operation. In order to keep its customers paying their fees – and that is mostly the corporations whose performance is being assessed – it needs to show that it is getting its assessments right, more than it gets them wrong.

In the run-up to the 2007-8 global crash, S&P was itself mesmerised by the hysterical expansion of fantasy finance in which products derived from the issue of traditional forms of credit and debt based on real value multiplied the amount in circulation many times over. The big players issued monumental quantities of derivatives and they paid the ratings agencies huge fees to provide the market with favourable assessments. Money talks. So the agencies failed to provide any warning about the impossible state of Lehman Brothers which crashed out of existence in 2008.

Governments, on the other hand, don’t pay the agencies to assess the health of their economies, or to assess the risk that they might default on interest payments to the investors who lend them money through the bonds they purchase.

The rating agencies make their assessments as part of the fees paid by corporations who want to know whether the state’s debt is more or less risky. The big, or even only question at stake is: will the government act sufficiently strongly to provide the conditions for the corporations to intensify the extraction of profit from their population?

So when S&P decides to downgrade the outlook for US debt, it is taking into account many factors. These days the judgement is more political than it is economic. The on-going Punch & Judy style shadow-play between Obama and the Republicans over the $4-5 trillion programme of cuts to be visited upon the American people is one aspect of the analysis.

As one economist observed: “The key question is whether the gridlocked US political system can respond in time to avert a bond market revolt.” Some commentators say that S&P’s action is a warning to Obama from the world of finance. If they don’t crack down hard enough, investment money will go elsewhere and interest rates will rise. But they’ll also be assessing the likely contagion effect of the wildfire of revolt spreading outwards from Tahrir Square throughout the Middle East, North Africa and taking in Gabon in Central Africa.

They’ll be weighing up the likely outcome of the political struggle against the regimes that have ensured the supply of cheap oil to fuel growth over the last forty years. They’ll be closely examining the protest movement in Europe for signs that it is moving beyond resistance. And they’ll be studying developments like the People’s Assembly arising from the occupation of the State Capitol in Wisconsin. It’s no wonder S&P has downgraded the US government’s prospects for paying back its loans.
Gerry Gold, 20 April 2011

 

The S&P Debt Warning: Wall Street Extortionists Demand
Savage Cuts

WSWS, 20 April 2011
Five days after the US Senate Permanent Subcommittee on Investigations released a voluminous report detailing the criminal activities of the banks and credit rating firms that precipitated the 2008 Wall Street crash and global recession, one of the named culprits, Standard & Poor’s Credit Ratings Services, issued an ultimatum to the White House and Congress demanding an agreement on savage austerity measures ahead of the 2012 elections.

In lowering its outlook from “stable” to “negative” on the top AAA rating for US Treasury bonds, S&P spoke Monday for the entire financial mafia that is headquartered on Wall Street. The ratings firm declared in a press release that failure to reach an agreement in the coming months to reduce the federal deficit by at least $4 trillion over the next decade “could lead us to lower the rating.”

This amounts to a threat to crash the US and global economy and undermine the status of the dollar as the world reserve currency. The move is part of an internationally orchestrated drive by the major banks and speculators to push through devastating attacks on the living standards of the American working class.

They are applying to the United States the extortionate methods used previously to stoke up speculative attacks on the sovereign debt of a number of European countries, including Greece, Ireland, Portugal and Spain. S&P and its major ratings rivals Moody’s and Fitch have issued strategically timed credit warnings and downgrades to create a crisis atmosphere, which governments have then utilized to override popular opposition and impose mass layoffs and wage cuts and shred social programs.

John Chambers, chairman of the sovereign ratings committee at S&P, virtually admitted as much, according to a report in Tuesday’s Wall Street Journal. The Journal wrote: “If the US reaches a British-style resolution, S&P will restore the US outlook to stable, Mr. Chambers said.”

In May of 2009, S&P lowered Britain’s credit outlook. It reversed the action 17 months later after the newly elected Conservative-Liberal Democrat coalition government announced a program of draconian cuts that will shatter the country’s social safety net.

Readers can make their own judgment as to S&P’s standing to be issuing such ultimatums. The Senate report on the Wall Street crash describes the corrupt process by which S&P routinely slapped AAA ratings on worthless securities marketed by the banks as follows: “Credit rating agencies were paid by Wall Street firms that sought their ratings and profited from the financial products being rated… The ratings agencies weakened their standards as each competed to provide the most favorable rating to win business and greater market share. The result was a race to the bottom.” Senator Carl Levin, the chairman of the subcommittee, described what the investigation uncovered as “a financial snake pit rife with greed, conflicts of interest and wrongdoing.”

By rights, the top S&P executives who presided over this fraud and pocketed multi-million-dollar salaries in the process should be sitting in prison. Instead, still at their posts and having suffered no consequences, they are using the disaster of their own making to gut bedrock social programs such as Medicare, Medicaid and Social Security upon which tens of millions of people depend.

The statement issued by S&P on Monday described both the Republican fiscal year 2012 budget plan and that outlined by President Obama last week as a basis for cutting the federal deficit by $4 trillion. However, the two sides had to come to an agreement before the national election in 2012, the company insisted.

This demand underscores the anti-democratic character of the so-called budget debate. It is an elaborate charade, behind which stands the dictatorship of the banks. The deal to eviscerate what is left of the social reforms of the 20th century has to be sealed before the elections to make sure that the vote in no way becomes a referendum on austerity and the electorate has absolutely no say in the matter.

The mass opposition to the measures being proposed by both parties is well known to Wall Street and its political servants in Washington. On Monday, the same day as the S&P announcement, McClatchy Newspapers published the results of a McClatchy-Marist poll showing that voters by a margin of 2-to-1 support raising taxes on incomes above $250,000, with 64 percent in favor and 33 percent opposed. They oppose cutting Medicare and Medicaid by 80-18 percent.

S&P intervened at the behest of the banks to shift the phony budget debate even further to the right and create the conditions for even deeper cuts than those being currently proposed. Interviewed Monday on Bloomberg Television, David Beers, S&P’s global head of sovereign finance ratings, said the $4 trillion deficit-cutting target was “not enough to ultimately halt the rising trajectory of US debt.” It was, he said, merely “a useful starting point.”

The establishment media immediately signaled that it had gotten the message. The Los Angeles Times editorialized that “Congress and the White House can’t afford to ignore this warning shot.” The Financial Times of London published an editorial that declared, “S&P’s warning shot should galvanise America’s leaders.”

Democratic leaders rushed to reassure Wall Street that they were on board. Speaking at a community college in Virginia Tuesday, Obama said, “I believe that Democrats and Republicans can come together to get this done.”
Steny Hoyer of Maryland, the No. 2 Democrat in the House of Representative, said Monday, “Today’s revised outlook shows the urgent, bipartisan action needed to put our nation on a serious path to reduce deficits.”

Erskine Bowles, a former White House chief of staff for Bill Clinton and co-chair of last year’s bipartisan fiscal commission, was even more emphatic. Speaking to the Financial Times, he said S&P had been “absolutely right” in lowering it outlook on US debt. “If anything, they understate the extent of the problem,” he said.

Only a mass, independent movement of implacable opposition by the working class can defeat this criminal conspiracy. The World Socialist Web Site and the Socialist Equality Party urge workers and young people to reject the entire framework of the so-called budget debate. There must be uncompromising opposition to any cuts in jobs, wages or social programs and services. The working class bears no responsibility for the crisis of the capitalist system.

We propose an alternate policy. As a down payment, to begin to recoup the wealth plundered by the financial elite, we propose a 50 percent tax surcharge on all household wealth over $5 million. This should be supplemented by raising the income tax on households taking in more than $500,000 a year to 90 percent. These measures will not only generate hundreds of billions of dollars for jobs, schools, health care, housing and pensions, they will attack the profligate squandering of resources and contribute mightily to the moral as well as the economic health of society.

These initial steps lead inexorably to the nationalization of the banks and major corporations and their transformation into public utilities under the democratic control of the working population. This is a socialist program. It requires that the working class break politically from the two parties of big business and build a mass movement to fight for a workers’ government.
Barry Grey, 20 April 2011


Portugal: Another Triumph For The Bond Dealers

Paul Feldman, 8 April 2011
As Portugal declares state bankruptcy, after its Socialist Party government failed to get an austerity package through parliament, it’s another triumph for the dictatorship of the money markets and bond dealers. Now, even though Portugal is without a government, the price demanded by Germany and the richer EU countries for an €80 billion bail-out is even deeper cuts in public spending than were first proposed. The upcoming general election is definitely one to lose.

Portugal’s finances collapsed because its budget deficit grew rapidly following the onset of the global recession. But the money markets drove up interest rates until Portugal was borrowing at over 8.5%, adding to the total deficit at a rate which made it impossible to repay.

In the last year, Greece – which still has a ‘socialist’ government and Ireland, which saw the ruling party wiped out at the recent general election, have suffered the same fate. Does the ‘contagion’ stop at Lisbon, or is Madrid next?

Spain’s government – yet another one that claims the rubric ‘socialist’ – is confident it can avoid Portugal’s fate – because it says it’s already making deep cuts in public spending! Youth unemployment is running at over 40% as a consequence. Meanwhile, Spanish bank assets are worth far less than before because of the collapse in property values and refinancing is increasingly expensive and hard to come by.

You can cut – as the Coalition is doing in Britain – to avoid higher borrowing rates but that only deepens the recession. Spending more would leader to higher borrowing rates, which the banks won’t like. Why? Because in the perverse world of capitalist finance, the value of the government bonds, which they hold as assets, depreciates as rates rise.

At the same time, British banks are steadfastly refusing to resume rates of lending last seen before the credit crunch of 2007. That’s because their balance sheets remain toxic and full of bad debt. Even the right-wing press is fed up with the banks.

On Monday, the Independent Commission on Banking set up by the government reports, and no one expects it to suggest any fundamental changes. The Daily Telegraph’s Jeff Randall reported: “The banks have captured our money twice over: as cash in their vaults and investments in their shares. We own all of Northern Rock, most of Royal Bank of Scotland and nearly half of Lloyds Banking Group. We rescued them – and in so doing became their prisoners.

But this is not a new problem. By the outbreak of World War One, the banks and the monopolies had formed an unholy alliance against ordinary working people and elected governments alike. After creating the Federal Reserve – America’s central bank – President Woodrow Wilson declared:

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilised world. No longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men”.

In the recent period of corporate-driven globalisation, the tensions and contradictions between the capitalist state and capitalist finance have deepened to the point where governments tread warily. The only way to sort that out is to put an end to the power of the bond dealers, banks and money markets and create a new, socially-driven financial system. It doesn’t need me to tell you that bourgeois governments are not capable of such a revolutionary change.
Paul Feldman, 8 April 2011Voag-Logo-9

 Trade Union and Socialist Coalition

“The £11 million spent on Labour by the Unite union does nothing else than allow them to kick us in the teeth” said Hannah Sell, deputy leader of the Socialist Party as she opened last night’s launch rally for the Trade Union and Socialist Coalition.

The Trade Union and Socialist Coalition, ‘TUSC’ is standing in many constituencies across the country to give voters an alternative to Labour in the general election. Chris Baugh, assistant general secretary of the PCS union said “we are all being told to pay the cost of the bosses’ crisis.” This coalition can “restate the idea that another world is possible.”

Last month’s launch rally was attended by more than 300 delegates and a large media presence. Speakers included Karen Reissman, a mental health nurse who was sacked from her job for ‘whistle blowing’ over patient care. She is standing for the Manchester Gorton constituency.

Brian Caton, leader of the Prison Officers Association spoke from the platform as did Dave Nellist, a Socialist Party Councilor standing in Coventry North East. Some of TUSC’s London candidates delivered strong speeches about their campaigns. Steve Hedley, of the RMT London region announced the breaking news of strike action on the railways.

 We won’t pay for their crisis
A key argument from speakers was that billions have been given to the rich bankers, whilst workers and public services are being made to pay the cost. Chris Bough spoke about the propaganda campaign by the media to enforce this injustice.

To laughter in the audience, and in a snub to the media he joked about the number of hedge-fund managers who have recently appeared on the BBC’s Newsnight programme. He said the media had launched a “torrent of abuse” against trade unions, with the British Airways strike being a good example. But he said, “The public are with the unions. They are way to the left of the politicians. 50 per cent of the public don’t think that cuts are necessary”.

Karen Reissman agreed and continued along this theme. “People say to me: we’re glad you’re standing, representing what we think.” She said, “There are millions of people who don’t think they should be made to pay.” Tottenham candidate Jenny Sutton, a college teacher, said that education was a good example of what is happening to public services everywhere. “We are being absolutely hammered.”

We need a new party
Brian Caton said that working class people need a new political party “by the people, for the people. It’s time for socialism to become real. I supported Labour all my life and got nothing in return.”

Dave Nellist also called for a new workers’ party. He said the difference between Labour and the other parties could be reduced to whether the full extent of public sector cuts are brought through in “six years or seven.” “Indeed, last night, Alasdair Darling told the BBC that Labour would cut deeper than Thatcher.”

Nellist went on to say that success for TUSC won’t just be measured by the number of votes, but will “plant it’s flag in the ground – saying that an alternative is possible.” He said that TUSC could be the start to building an “independent trade union and socialist voice.” Hannah Sell said, “This is the modest beginning of something historic. We hope this will start the development of a mass party.”

Some TUSC candidates should do quite well – at least save their deposit. Karen Reissmann and Jenny Sutton (London regional secretary of UCU), for example. Dave Hill of Socialist Resistance is expected to do well in Brighton– And of course Paul Couchman in the Spelthorne constituency in Surrey. If 5-6 candidates save their deposits or do even better, then the pressure for a new party would be very high.

Paul Couchman is a paragon of what a candidate for a new workers’, anti-capitalist party should be. A Socialist Party branch organiser, he is a Unison branch secretary. He has consistently been involved in the community over many years and takes an active part in many local groups. He is the founder of “Save Surrey Services”, and is the founder and organiser of the campaign to save Surrey’s care homes. Paul is well known and respected throughout West Surrey and is known for his campaigning to keep schools and hospitals from closure. 

For an anti-capitalist party!
When the capitalist parties like Labour, Tories and the Lib Dems are about to launch such a huge assault on working class people, it is important that many TUSC candidates and supporters recognise that we need a new party to defend ourselves.

But speakers also made clear that there are many obstacles we will have to overcome to form such a new party. Onay Kasab, a Unison branch organiser standing for Greenwich & Woolwich spoke about how he had been witch-hunted by the Unison leadership. The union is currently victimizing left-wing activists. He told us that a memo had gone round to branch secretaries telling them that to lobby for non-Labour candidates in the general election would result in expulsion from the union. He told a disgusted audience that the Unison orders were “gobs shut for Labour.”  This is a declaration of war by the Unison leadership – vote Labour or else!

Steve Hedley said that the RMT union would only be supporting left-wing Labour candidates, although he admitted that these candidates were standing for the wrong party. He said that we urge left MPs like Jeremy Corbyn and John McDonnell to break from Labour.

In doing this, RMT leaders are stepping back from the kind of fight that is necessary for a new party. Some candidates, including the Workers Power candidate in Vauxhall, Jeremy Drinkall, were barred from standing for TUSC because they were standing against ‘left’ Labour MPs (in Vaxhall this is Kate Hoey). PCS leaders have been similar in their procrastinating, whilst the Labour government have been laying the way for civil service job cuts by attacking redundancy pay.

Despite the potential of the Trade Union and Socialist Coalition, its weakness is that left-wing trade union leaders ultimately have a veto over all the decisions that are made. The launch meeting was very weak on the question of socialism with almost no mention of a goal for the coalition how to achieve it.

The PCS, RMT and other unions outside Labour – along with groups like the Socialist Party and Socialist Workers Party should have organised a mass conference to decide on the politics and policies of this coalition. They could have used it to galvanise support from workers and youth all over the country who are in struggle against the economic crisis with the explicit aim of forming a new political party to destroy capitalism for good.

This new formation should be federated and it’s members free to belong to other political organisations which support the new party. The branches of such a formation should act as pluralistic campaigning groups, and encompass anarchists, radical environmentalists and syndicalists as well as trades unionists and socialists. In-fact, all those who appreciate that capitalism is not working and that we need to fight for a better future, free from the rule of profit, the threat of war, fascism and global warming.

This has not been done. TUSC drafted its manifesto in secret meetings behind closed doors, asking workers to ‘like it or lump it’. As a result there are major weaknesses with the TUSC programme reducing it to an ‘old Labour’ manifesto seeking to reform capitalism, rather than abolish the rotten system for good.

Such a conference should still be called, to start preparing the ground for a new party. The next few weeks are due to see a huge number of strikes – highly unusual in the run-up to the general election. Why not call for such a conference now and bring in the BA, RMT and British Gas workers, civil servants and teachers who are all taking industrial action to save their jobs? Then socialists could start having the arguments around the kind of action and international solidarity needed to protect the class as a whole. -And begin to build an alternative society with an alternative economy – where workers and communities are the ones who control it.