Posts Tagged ‘Panama’

Kenneth Surin on Brexit and May’s Corporate Attack on the Poor

April 20, 2017

On Tuesday, Counterpunch published a long piece by their contributor, Kenneth Surin, on Theresa May’s plans for Brexit, and how this will inevitably harm the poor and the working people of this Sceptred Isle. And it’s what you’re already expecting, if you’ve read the Groaniad, those bits of the I newspaper that are still even remotely genuinely liberal, and bloggers like Mike over at Vox Political, the Canary, Another Angry Voice, The Void and so on. May, he predicts, will talk a hard Brexit in order to counter some of the opposition from the Tory Right, but will leave some room for a soft Brexit. She, Boris Johnson, and the other vicious grotesques currently infesting the halls of power, want to use it to turn Britain into a tax haven. So he predicts that the City of London and its connections to some very dodgy individuals – he has a paragraph giving the names of some of them – will get even murkier. But, as he points out, Britain already is a tax haven through the Channel Islands.

He states that we are likely to be given a very hard deal by the EU. He states that there was friction between Britain and the European Union as while the EU represents the power of corporate capital, it draws a line on their direct influence in government. The lingering Social Democratic tradition in these countries, like France, Germany, and the Scandinavian nations, means that the government governs for industry, but is not run like an industry. Unlike the Neoliberal vision, exported to Britain from the US, which wants government to be run exactly like a business.

He also predicts that May and her grotty team will inflict further misery on the poor, because that’s what appeals to the right-wing British press, like ‘the foreigner Murdoch’ and the ‘tax-dodging, Nazi-supporting Rothermere family’. The Tories will follow Farage, and privatise the NHS, just as the are already privatising services and levying charges for them.

He also rebuts May’s feigned concern for those ‘Just About Managing’, or the JAMs. Despite all the crocodile tears she and her cronies shed, she has done absolutely nothing for them. Wages are still stagnant, the opportunities to upgrade one’s skills are similarly being cut, as are welfare services to support the poor and unemployed.

Surin begins his article also by pointing out that when it comes to the day, the vote on Brexit is likely to be influenced by factors and issues that aren’t really relevant. He also talks about the way May has already shot herself in the foot by trying to promote Brexit using images of places, which have actually benefitted from the EU. Like the northern shipyards, which were given a million pound grant.

Surin begins his piece

“So at this moment of change [Brexit], we must respond with calm, determined, global leadership to shape a new era of globalisation that works for all”.

— Theresa May

“My plan for Britain is not just a plan to leave the EU but a plan to build a stronger economy and a fairer society, underpinned by genuine economic and social reform. To make Britain a country that works for everyone, not just a privileged few”.

— Theresa May

The UK’s Brexit roll-out is a constantly evolving project, zig zagging along because the Tories in charge of it, like everyone else, have no real idea of how it will culminate. So far it has been ad hockery all the way, though one or two of the project’s connecting threads are starting to be visible.

One week, Theresa “the woman without qualities” May, who voted against Brexit, is in favour of a “hard” Brexit (basically one involving no deal of any kind with the EU regarding the single market and immigration), the next she softens her tone and hints that a more placative agreement with the EU, amounting to a “soft” Brexit, might be welcomed in whatever hoped-for way.

Nothing was more symbolic of this chaos and muddled-thinking than the most recent pro-Brexit television broadcast by May, which showed her against the background of ships moving in the Scottish port of Aberdeen.

Oops– the port of Aberdeen was granted a €258 million loan from the European Investment Bank on 20 June 2016, just 3 days before the UK voted to leave the EU!

It all seems to depend on how much heat the pro-Brexit right-wing of her party, citing that chimerical entity “sovereignty”, can turn on her.

Her predecessor, “Dodgy Dave” Cameron, weary of feeling this heat, called the Brexit referendum to cool down his party’s right-wing, absolutely confident in his nonchalantly patrician way that Brits would consider themselves better-off by remaining in the EU.

Such referenda, although purportedly on a single-issue, tend invariably to have outcomes determined very much by the mood of the electorate, which is affected by a plethora of considerations having nothing specifically to do with the issue officially on the table on referendum day.

***

May’s calculation requires her to “talk” a hard Brexit, to neutralize the right-wingers who ended her predecessor’s political career, and to gain the support of the right-wing press– owned by the foreigner Murdoch, the Nazi-supporting and tax-dodging Rothermere family, Richard “Dirty Des” Desmond (the former head of a soft porn empire), the tax-dodging Barclay brothers, and a Russian oligarch.

This overseas-domiciled and tax-dodging (in the cases mentioned) crew have set the low-information agenda for those inclined towards Brexit, so May’s strategy, if we can call it that, has been accommodating towards their hard Brexit stance, while leaving things vague enough for loopholes to enable a “softish” Brexit if needed.

May, craving electoral success, has to cater to all sides and eventualities. The results are likely to be calamitous for the UK.

Why is this?

May’s primary objective is to convey the impression that Brexit will “work for all”.

Alas there is no evidence for this claim.

***

The UK’s pro-Brexit movement, in the absence of anything resembling a Lexit, is not going to be shackled by this or that constraint previously imposed by the EU.

For instance, the UKIP leader Nigel Farage, Trump’s non-American sycophant par excellence, though a minimal figure, has always advocated the privatization of the NHS. And this is exactly what the Tories have been pursuing by stealth since 2010.

***

May has already said she “stands ready” to use Brexit as an opportunity to turn the UK into a tax haven, or as the financial press euphemistically puts it, “a low-tax financial centre”. It is already one of course (this being the primary function of the islands of Guernsey, Jersey, the Isle of Man, and Gibraltar).

What May clearly means is that London’s financial sector, which is already awash in murky water, will become an even muddier swamp able to match similar swamps in the Cayman Islands, Bermuda, Panama, Hong Kong, Singapore, and so forth. Dwellers of these swamps include assorted drug dealers, human traffickers, gun runners, owners of illegal gambling syndicates…

***

In addition to May desiring this state of affairs for the City of London, it is clear from the composition of the team put together by the secretary of state for international trade Liam Fox to negotiate post-Brexit trade deals, that Brexit UK is going to pursue a thoroughgoing pro-corporate agenda.

***

This corporate bonanza will probably be accompanied by a weakening of environmental regulations, since most of the leading Brexiteers are climate-change deniers or supporters of fracking (and in most cases, both).

Pro-Brexit climate-change deniers include Farage, Michael Gove (who tried to ban climate change from the school curriculum when he was education minister), the foreign minister Boris “BoJo” Johnson, Thatcher’s finance minister Nigel Lawson, and the above-mentioned Liam Fox.

***

This hugely attractive and compassionate bunch (sic) are not going to be too concerned about pollution, biodiversity, natural habitats, animals abused by industrial farming, climate change, the prohibition of lethal pesticides, declining fish stocks, the international trade in endangered species, and the use of GMOs, when the agribusiness corporations howl about environmental regulation being a burden to them.

There will be no remotely green agenda under this ghastly crew.

***

May prates on about her deep concern for “just about managing” families (JAMs), but the austerity agenda passed on by the disastrous former Chancellor of the Exchequer George Osborne is being implemented with only a slight cosmetic tweak here and there.

The UK economy has grown since 2010, but, according to the Guardian, 7.4 million Brits, among them 2.6 million children, live in poverty despite being from working families (amounting to 55% of these deemed poor) — 1.1 million more than in 2010-11.

The report cited by the Guardian, produced by the reputable Joseph Rowntree Foundation (JRF), shows that the number living below the Minimum Income Standard – the earnings, defined by the public, required for a decent standard of living – rose from 15 million to 19 million between 2008/9 and 2014/5. The UK’s population is 65 million.

These 19 million people, or just under 1/3rd of the UK’s population, are its JAMs.
***

Social care is becoming increasingly unaffordable for them, the NHS is starting to charge for treatment as it undergoes a backdoor privatization, they have fewer opportunities for upskilling in order to raise their incomes, and so on. This while their wages are stagnant even as the cost of living is increasing for them.

***

Such important and pressing issues need to be addressed as a matter of urgency, but they are not.

The Tories pro-corporate Brexit agenda has become the proverbial tail wagging the dog.

***

Many have a name for what is really and truly going on in the UK and US: class warfare.

The bastards have the underprivileged by the throat. All the mainstream political parties are terrified of offending them, if they haven’t already thrown their lot in with the bastards.

What is desperately needed, for the dispossessed and disadvantaged, is a reversal of this situation, in which many firm hands turn round and grasp the throats of those responsible for the misery of tens of millions of people.

Is there anyone in the almost moribund Labour party, torn apart by infighting caused by its still significant Blairite remnant, capable of saying any of the above unequivocally?

Go read the rest of the article at: http://www.counterpunch.org/2017/04/18/the-calm-determined-stronger-fairer-uk-brexit-zig-zag/

In answer to Surin’s final question, yes, there are plenty of people in the Labour party willing to point all this out. They’ve tried to do so ad infinitum. But the Blairites and the Tory media are doing their best to stop that message getting out. They never report what they say about the detrimental attacks the Tories and Blair have made on the welfare state, the NHS and the economy, but selectively quote them in order to make it all fit the narrative that Corbyn and his wing of the party are ignoring these issues. And it’s done deliberately to fit the narrative of Corbyn as a Trotskyite entryist.

It’s why I’m afraid that the next two months will be a very hard struggle for everyone desperate to save Britain from the corporatist swamp created by the Thatcherites and their media lickspittles.

Sebastian Gorka – Another Fascist in Trump’s Cabinet

March 1, 2017

Trump’s cabinet is notorious for the number of anti-Semites, Fascists and Nazis in it, like Steve Bannon, the head of Breitbart, and Richard Spencer, the founder of the Alt Right. And now here’s another one, Sebastian Gorka. Gorka’s Trump’s Deputy Assistant. In this video from the David Pakman show, Pakman and his producer, Louis, talk about the links between Gorka and the Hungarian ant-Semitic extreme right, and how he worn in public the medallions and decorations of Hungary’s anti-Semitic dictators and extreme nationalist parties. He has, for example, worn a pin associated with Admiral Horthy’s regime. Horthy was the dictator of Hungary from 1922 onwards, who was officially listed as a collaborator with the Nazis by the US government. He also defended the use of the Arpad Flag, the emblem of the Arrow Cross Party, the anti-Semitic extreme nationalist party that governed Hungary during the period of the Third Reich. From 2002 to 2007 Gorka was active in Hungarian extreme rightwing politics. He appeared and collaborated with anti-Semites, neo-Nazis and Holocaust deniers, and was part of the movement to organise another extreme Right-wing party, which has the goal of putting Christianity back into Hungary’s constitution. He also wrote for an extreme rightwing newspaper, Magyar Demokrita, which the US government has officially listed as anti-Semitic and Holocaust-denying. He also worked for the Hungarian National Committee, whose 2004 yearbook contained the following call to purge Hungary of its Jews:

We need to get the Jews out. In fact, we need to take back our country from them. We need to take back our stolen fortunes. After all, these upstarts are sucking on our blood and are getting rich off our blood. This is vile, obscene stuff, which could easily have come from Goebbels himself or Julius Streicher’s Der Sturmer. Gorka has also said that it’s right that foreign leaders should be afraid of Trump.

Pakman and Louis remark on how it is strange that Trump denies being an anti-Semite, has a Jewish son-in-law and a daughter who converted to Judaism to marry her husband, but nevertheless surrounds himself with these Fascists. Pakman states that it’s probably because Trump holds many anti-Semitic images and stereotypes about Jews, but doesn’t think that he actually hates them. These beliefs still enable him to stand next to one on a political platform. Pakman and Louis also consider that Trump’s slogan, ‘American first’, also may play a part in making him comfortable with the presence and cooperation of anti-Semites and Nazis. The slogan ‘America first’ comes from the country’s isolationist stance between the First and Second World Wars, when the country did not want to enter the war against Fascism in Europe or allow in European refugees.

Pakman finally concludes this piece by observing that, despite announcing that he is a ‘proud American’, Gorka’s another one of the pesky immigrants to the US. He was born in London of Hungarian parentage. But as he’s White, Trump’s administration likes him.

In actual fact, there’s been a section of the Republican party that has included racists and outright Nazis for a very long time. They’ve been around ever since the US – and Britain – recruited former Nazis, included members of the SS and Gestapo – to use against the spread of Communism during the Cold War. ‘Red Ken’ Livingstone has a couple of chapters on this in his 1987 book, Livingstone’s Labour, which should show very strongly that the old newt fancier is no kind of anti-Semite. America has supported a long, bloody list of Fascist dictators abroad since the Second World War, such as General Pinochet in Chile, and the various Fascist regimes and death squads in Guatemala, Panama and Nicaragua. The World Anti-Communist League includes American ultra-Conservatives as well as Fascists and Nazis from across the world. And in the 1980s Reagan also supported Ukrainian nationalists and Nazi collaborators in his campaign against the USSR.

Links between the Republican party and international Fascism are therefore nothing new. What is new here is that they’re now obvious and blatant, whereas before they were all hidden from the voting public to a greater or lesser extent. It was monstrous that these thugs and torturers should ever have been a part of American politics or supported by US foreign policy. But their appearance as a formal part of Trump’s cabinet is deeply ominous, as it shows the normalisation of such Fascism as part of American politics. If this continues, and openly Fascist politicians and aides are given posts and public offices, you have to wonder how long it will be before American democracy itself is undermined and replaced by a racist, right-wing dictatorship.

Blum’s List of Country In Which US Has Interfered with their Elections

February 18, 2017

A few days ago I posted up a list of the nations in William Blum’s Rogue State: A Guide to the World’s Only Superpower where the US had interfered in its politics to block the election of a left-wing or liberal candidate, have them overthrown, or colluding and gave material assistance to a Fascist dictator and their death squads. As well as outright invasions, such as that of Grenada and Panama under Reagan and Bush in the 1980s, and the invasions of Afghanistan and Iraq under George Dubya.

Blum also has a list of countries, where the US has interfered with their domestic politics to pervert their elections. These include

The Philippines 1950s

Setting up by the CIA of a front organisation, the National Movement for Free Elections to promote its favoured politicians and policies, giving finance and other assistance to those candidates, disinformation, and drugging and plotting to assassinate their opponents.

Italy 1948-1970s

Long-running campaigns against the Communist party and to assist the conservative Christian Democrats.

Lebanon 1950s

CIA funding of President Camille Chamoun and other pro-American politicians; sabotaging of campaigns of politicos sceptical of American interference in their country.

Indonesia 1955

CIA donated a million dollars to Centrist Coalition to attack the electoral chances of President Sukarno and the Communist party.

British Guiana/Guyana 1953-64

Campaign to oust prime minister Cheddi Jagan, using general strikes, terrorism, disinformation and legal challenges by Britain.

Japan 1958-1970s

CIA funding of conservative Liberal Democratic Party against the Japanese Socialist Party, allowing the Liberal Democrats to stay in power continuously for 38 years.

Nepal 1959

CIA operation to help B.P. Koirala’s Nepali Congress Party to win the country’s first ever election.

Laos 1960

CIA arranged for massive fraudulent voting to ensure electoral victor of local dictator Phoumi Nosavan.

Brazil 1962

CIA and Agency for International Development funded politicos opposed to President Joao Goulart, as well as other dirty tricks against various other candidates.

Dominican Republic 1962

US ambassador John Bartlow Martin instructs the heads of the two major parties before general election that the loser would call on his supporters to support the winner, and that the winner would offer seats to the loser’s party. Also worked with the government to deport 125 people, including supporters of previous dictator Trujillo and Cuba.

Guatemala 1963

Overthrow of General Miguel Ydigoras, as they feared he was about to step down and call a general election, which would be won by previous reforming president and opponent of American foreign policy, Juan Jose Arevalo.

Bolivia 1966

Funding by CIA and Gulf Oil of campaign of president Rene Barrientos. The CIA also funded other rightwing parties.

Chile 1964-70

Interference in the 1964 and 1970s elections to prevent the election of Salvador Allende, democratic Marxist, to the presidency.

Portugal 1974-5

CIA funded moderates, including Mario Soares and the Socialist Party, and persuaded the other democratic socialist parties of Europe to fund them in order to block radical programme of generals, who had overthrown Fascist dictator Salazar.

Australia 1974-5

CIA funding of opposition parties and use of legal methods to arrange overthrow of prime minister Gough Whitlam because he opposed Vietnam War.

Jamaica 1976

Long CIA campaign, including economic destabilisation, industrial unrest, supplying armaments to his opponent and attempted assassination to prevent re-election of Prime Minister Michael Manley.

Panama 1984, 1989

CIA-funded campaigns first of all to support Noriega, and then against him in 1989, when the CIA also used secret radio and TV broadcasts.

Nicaragua 1984, 1990

1984: Attempt to discredit the Sandinista government by CIA. The opposition coalition was persuaded not to take part in the elections. Other opposition parties also encouraged to drop out; attempts to split Sandinistas once in power.

1990: Funding and partial organisation of opposition coalition, UNO, and its constituent groups by National Endowment for Democracy to prevent election of Sandinistas under Daniel Ortega; Nicaraguans also made aware that US intended to continue proxy war waged by Contras if they elected him.

Haiti 1987-88

CIA supported for selected candidates after end of Duvalier dictatorship. Country’s main trade union leader claimed US aid organisations were smearing left-wing candidates as Communists and trying to persuade rural people not to vote for them.

Bulgaria 1990-1, Albania 1991-2

Interference in both countries election to prevent re-election of Communists.

Russia 1996

Extensive backing and support to Yeltsin to defeat Communists.

Mongolia 1996

National Endowment for Democracy funded and helped form the opposition National Democratic Union, and drafted its platform, a Contract with the Mongolian Voter, based Newt Gingrich’s Contract with America. The goal here was to accelerate the regime’s privatisation programme and create government favourable to the establishment of American corporations and intelligence agencies in the country.

Bosnia 1998

US turns country into ‘American protectorate’ by appointing Carlos Westendorp as high representative in 1995 Dayton Peace Accords. Before 1998 elections Westendorp removed 14 Bosnian Croatian candidates, claiming reporting by Croatian television biased. After election removes president of Bosnia Serb republic on grounds that he was causing instability.

In 2001 and 2005 high representative also removed one of the three joint presidents of the country. In 2005 high representative Paddy Ashdown, who sacked Dragan Covic.

Nicaragua 2001

US smears against Sandinista leader, Daniel Ortega, accused of human rights violations and terrorism. US ambassador openly campaigned for Ortega’s opponent, Enrique Bolanos. US also pressurised Conservative party to withdraw from the elections so as not to split right-wing vote. There were also adds in the papers signed by Jeb Bush, claiming that Dubya supported Bolanos. Bolanos himself also stated that the Americans had told him that if Ortega won, they would cease all aid to the country.

Bolivia 2002

Extensive campaign against socialist candidate Evo Morales because he was against neoliberalism and big business, as well as the attempts to eradicate the coca plant, the source of cocaine.

US ambassador smeared him with accusations of connections to drug cartels and terrorism. US Assistant Secretary of State for Western Hemisphere also said America could cut off aid if Morales elected. Meetings between US ambassador and officials and leading figures in rival parties to support Morales’ rival, Sanchez de Lozada.

Slovakia 2002

Warnings by US ambassador to the country and the US ambassador to NATO that if they elected Vladimir Meciar, former president running on anti-globalisation campaign, this would damage chances of their country entering EU and NATO. Also interference by National Endowment for Democracy against Meciar.

El Salvador 2004

Campaigning by US ambassador and three US Republican members of congress, including Thomas Tancredo of California, threatening cessations of aid and work permits for the countries’ people to work in America, in order to prevent election of FMLN candidate Schafik Handal and win victory of Tony Saca of the Arena party. FMLN former guerilla group. Handal stated he would withdraw Salvadorean troops from Iraq, re-examination privatisations and renew diplomatic contacts with Cuba. Arena extreme rightwing party, pro-US, free market, responsible for death squads and the murder of Archbishop Oscar Romero.

Afghanistan 2004

Pressure placed by US ambassador, Zalmay Khalilzad, on political candidates to withdraw in favour of Washington’s preferred candidate, Hamid Karzai.

Palestine 2005-6

Massive pressure by the Americans to prevent the election of Hamas, including funding of the Palestinian Authority by the National Endowment for Democracy.

This last country is my own suggestion, not Blum’s.

Great Britain?

Go and read various articles in Lobster, which describe the way the US and its various front organisations collaborated with the right-wing of the Labour party to stop possible Communist influence. In the 1980s Reagan also created the British-American Project for the Successor Generation, alias BAP, to cultivate rising politicians of both the left and the right, and make them more favourable towards America and the Atlantic alliance. These included Tony Blair and Ed Balls, but you won’t read about it in the Times, because it’s editor was also a BAP alumnus.

William Blum’s List of American Foreign Interventions: Part 2

February 15, 2017

Jamaica 1976
Various attempts to defeat Prime Minister Michael Manley.

Honduras 1980s
Arming, equipping, training and funding of Fascist government against dissidents, also supporting Contras in Nicaragua and Fascist forces in El Salvador and Guatemala.

Nicaragua
Civil War with the Contras against left-wing Sandinistas after the overthrow of the Somoza dictatorship.

Philippines 1970s-1990
Support of brutal dictatorship of Ferdinand Marcos

Seychelles 1979-81
Attempts to overthrow country’s leader, France Albert Rene, because he tried to turn his nation and the Indian Ocean into nuclear free zone.

Diego Garcia late 196-0s to Present
People of the largest of the Chagos islands forcibly relocated Mauritius and Seychelles so that Americans could build massive complex of military bases.

South Yemen, 1979-84
CIA backing of paramilitary forces during war between North and South Yemen, as South Yemen government appeared to be backed by Russia. In fact, the Russians backed North and South Yemen at different times.

South Korea
Support for military dictator, Chun Doo Hwan, in brutal suppression of workers’ and students’ uprising in Kwangju.

Chad 1981-2
Political manipulation of Chad government to force Libyan forces of Colonel Gaddafy to leave, aided Chadian forces in the Sudan to invade and overthrow Chadian government installing Hissen Habre as the ‘African General Pinochet’.

Grenada 1979-83
Operations against government of Maurice Bishop, and then invasion when Bishop government overthrown by ultra-leftist faction.

Suriname 1982-4
Abortive plot to overthrow Surinamese government for supporting Cuba.

Libya 1981-89
Attempts to overthrow Colonel Gaddafy.

Fiji 1987
Prime Minister Timoci Bavrada of the Labour Party overthrown as neutral in Cold War and wanted to make Fiji nuclear free zone.

Panama 1989
Overthrow of Manuel Noriega, long-term American ally in Central America for drug trafficking. The real reason to was intimidate Nicaragua, whose people were going to the elections two months later and stop them from voting for the Sandinistas.

Afghanistan 1979-92
Backing of Mujahideen rebels against Soviet-aligned government then Soviet forces.

El Salvador 1980-92
Backing of right-wing dictator and death squads in country’s civil war against dissidents, after first making sure the dissidents got nowhere through democratic means.

Haiti 1987-94
US government opposed reformist priest Jean-Bertrand Aristide, aiding Haiti government and its death squads against him. However, after he won the 1991, they were forced to allow him back in. They then extracted a promise from him that he would not aid poor at expense of the rich and would follow free trade economics. Kept army there for the rest of his term.

Bulgaria 1990-1
Massive campaign by the US through the National Endowment for Democracy and Agency for International Development to aid the Union of Democratic Forces against the Bulgarian Socialist Party, the successor to the Communists.

Albania 1991
Another campaign to keep the Communists out, in which the Americans supported the Democratic Party.

Somalia 1993
Attempts to kill Mohamed Aidid. The motive was probably less to feed the starving Somali people, and more likely because four oil companies wished to exploit the country and wanted to end the chaos there.

Iraq 1991-2003
American attempts to overthrow Saddam Hussein.

Colombia 1990s to Present
Aid by US to suppress left-wing guerillas.

Yugoslavia 1995-99
Campaigns against Serbia government during break up of the former Yugoslavia.

Ecuador 2000
Suppression of mass peaceful uprising by indigenous people of Quito, including trade unionists and junior military officers on orders from Washington, as this threatened neoliberalism.

Afghanistan 2001-to Present
Invasion and occupation of country after 9/11.

Venezuela 2001-4
Operations to oust Chavez.

Iraq 2003-to Present
Invasion and occupation.

Haiti 2004
President Aristide forced to resign by Americans because of his opposition to globalisation and the free market.

For much more information, see the chapter ‘A Concise History of United State Global Interventions, 1945 to the Present’ in William Blum’s Rogue State: A Guide to the World’s Only Superpower, pp. 162-220. I realise that many of the Communist regimes Washington sought to overthrow were hardly models of virtue themselves, and often responsible for horrific acts of repression. However, the US has also sought to overthrow liberal and Socialist governments for no better reason than that they sought to improve conditions for their own peoples against the wishes of the American multinationals. And the regimes Washington has backed have been truly horrific, particularly in Latin America.

So it’s actually a very good question whether America has ever really supported democracy, despite the passionate beliefs of its people and media, since the War.

Financial Times Review of Book on Origins of American Financial Imperialism

October 27, 2015

Also looking through the pile of past newspaper clippings I’ve collected, I found this review by David Honigmann of Financial Missionaries to the World: The Politics and Culture of Dollar Diplomacy 1900-1930, by Emily S. Rosenberg, published by Harvard, in the FT’s weekend supplement for 11th/12th March 2000.

The Real Costs of an Empire on Loan

At the end of the 19th century, the US was acquiring an empire by default, picking up colonial possessions and exerting a sphere of influence it did not quite know how to handle. When the 1896 selection turned on the question of currency reform and the gold-standard advocates won, the next step to export the gold standard to the scattered territories under US control. It spread from Puerto Rico to the Philippines, then Panama, Cuba, Haiti, Nicaragua, Mexico. Eventually, US financial advisers would by plying their trade as far afield as China, Germany and Persia.

Dollar diplomacy was the term coined for an arrangement under which struggling economies would receive loans from US banks in return for accepting “supervision” from American economic advisers. The story of the public-private partnership that tried to bring this about is the subject of Emily Rosenberg’s meticulously researched book.

She traces the three parties involved in pushing dollar diplomacy. Investment banks, anxious for new markets, provided the loans. Academics made, in some cases, small fortunes from providing the advice: Edwin Kemmerer, who became the high priest of dollar diplomacy, made many times his already generous Princeton salary from grateful client governments. (Rosenberg cites personal correspondence to show that Kemmerer was obsessed with the inadequacy of his salary and what this meant for his manliness.

The third party underpinning all this was the US State Department, which played an ambiguous role in approving the loans. Each loan went to the State Department for approval, and when approval was granted there was at least a tacit expectation by lenders that the US government was backing it, protection which could take any form from ambassadorial murmurings to the dispatch of the Marines.

Banking was a contested area at the time. The gold standard, with its tendency to deflation, was inimical to small farmers and small businessmen. Marxists condemned it as materialism in action, and opposition to it also drew on a strain of populist anti-Semitism. (In the 1896 election, the Democrats warned against “crucifying mankind upon a Cross of Gold”.)

Attitudes to dollar diplomacy did not split evenly along political lines, however. When President (Theodore) Roosevelt, in 1905, halted the Dominican Republic’s slide towards bankruptcy by turning it into a US fiscal protectorate, and then built it into a model of dollar diplomacy, there was little anti-imperialist protest. The plan was seen essentially as extending “assistance without annexation”.

It was only as client countries began to rebel against the conditions and policies imposed to accompany loans (the Sandino rebellion in Nicaragua in the late 1920s being the most visible) that progressive domestic opposition and the Comintern rallied to denounce it.

Rosenberg dives deepest into the professional advisers and their search for respectability. this was the foundation of the whole system: the professionalism of the advisers reduced the perceived risk of the loans, lowering their price and making them affordable for the client countries. The advisers presented themselves as impartial third parties, aloof from both US governmental interests and the banks, responsible only to client governments. In fact, they received considerable support behind the scenes from the State Department, and Kemmerer was also kept on a secret annual retainer by Dillon Read, one of the investment banks: not so much Chinese walls as Hall of Mirrors.

Despite the technocratic claims of the advisers, dollar diplomacy was not a clean, value-free exercise. Rosenberg locates its roots in the cultural debates of the early 20th century. The Tarzan books and films were only one example of the ways in which other nations and peoples were framed as “primitive” and in need of western assistance.

Dollar diplomacy even became the subject of poplar entertainment, as in Edison’s 1917 film Billy and the Big Stick, whose hero was an American customs officer in Haiti, denied his salary by the Haitian president until he threatens the dispatch of gunboats. All very explicit, it might seem; in fact, as Rosenberg notes, it was the US financial adviser in Haiti who sopped the wages of Haitian officials until they agreed to his proposals.

The crux of Rosenberg’s argument is that dollar diplomacy cloaked geo-politics in the guise of market contracts, but with the iron first ill-concealed in the velvet glove. She draws a parallel with Victorian marriage contracts: “the dominant (male) party promised monetary support (loans) and supervision in return for obedience and acceptance of regulation. Yet, also like marriage, the status inequalities were embedded in the controlled loan contracts of dollar diplomacy, even as the contracts tended to be culturally presented as freely negotiated and based on mutual attraction.”

Financial Missionaries to the World is not easy reading. It is full enough of fiscal minutiae that even fairly central concepts, such as financing currency conversion through seniorage, go unexplained. There is no argument that is not a discourse, no assumption that is not a paradigm, no subordination that is not a “feminization”.

But it works well in explaining how this policy of arm’s length financial administration arose, how it was sustained by cultural pressures in the teeth of growing opposition from both isolationist Right and anti-colonialist Left, and how it eventually collapsed in the gale of the 1929 Crash and a series of armed rebellions.

Rosenberg does briefly trace the evolution of dollar diplomacy through Bretton Woods and the rise of the IMF, although a less scholarly book might have drawn even more explicit parallels with the financial regimens imposed by today’s multinational institutions. But perhaps the warnings are all too clear.

That last paragraph is important. The IMF and the World Bank certainly do act as instruments of American economic imperialism. When countries go for them for loan, these are given with a set prescribed conditions to rectify those nations’ ailing economies: they are to private the state industries and cut down on state expenditure generally, including removing or cutting back on any welfare support they may provide their citizens. The privatised industries are to be sold to American companies.

And the Americans haven’t just tried this with Developing Nations. They’ve done it to us as well. The British Empire was dismembered partly due to pressure from the Americans for their help during the Second World War, as they wanted to open up the closed imperial trading bloc to American companies. And they’ve continued interfering in our economic affairs afterwards. According to Lobster, one of the chiefs and head executives at the Bank of England under Bliar was Deanne Julius, a high ranking official within the American banking system. She believed that Britain should abandon its role as a manufacturer and concentrate instead on servicing American global financial interests.