Wednesday, February 25, 2009

Economic Collapse & U.S. Intel Chief's Shocking Warning

U.S. Intel Chief's Shocking Warning: Wall Street's Disaster Has Spawned Our Greatest Terrorist Threat
By Chris Hedges, TruthdigPosted on February 17, 2009, Printed on February 25, 2009

We have a remarkable ability to create our own monsters. A few decades of meddling in the Middle East with our Israeli doppelgnger and we get Hezbollah, Hamas, al-Qaida, the Iraqi resistance movement and a resurgent Taliban. Now we trash the world economy and destroy the ecosystem and sit back to watch our handiwork. Hints of our brave new world seeped out Thursday when Washington's new director of national intelligence, retired Adm. Dennis Blair, testified before the Senate Intelligence Committee. He warned that the deepening economic crisis posed perhaps our gravest threat to stability and national security. It could trigger, he said, a return to the "violent extremism" of the 1920s and 1930s.
It turns out that Wall Street, rather than Islamic jihad, has produced our most dangerous terrorists. We will see accelerated plant and retail closures, inflation, an epidemic of bankruptcies, new rounds of foreclosures, bread lines, unemployment surpassing the levels of the Great Depression and, as Blair fears, social upheaval.
The United Nations' International Labor Organization estimates that some 50 million workers will lose their jobs worldwide this year. The collapse has already seen 3.6 million lost jobs in the United States. The International Monetary Fund's prediction for global economic growth in 2009 is 0.5 percent--the worst since World War II. There are 2.3 million properties in the United States that received a default notice or were repossessed last year. And this number is set to rise in 2009, especially as vacant commercial real estate begins to be foreclosed. About 20,000 major global banks collapsed, were sold or were nationalized in 2008. There are an estimated 62,000 U.S. companies expected to shut down this year. Unemployment, when you add people no longer looking for jobs and part-time workers who cannot find full-time employment, is close to 14 percent.
And we have few tools left to dig our way out. The manufacturing sector in the United States has been destroyed by globalization. Consumers, thanks to credit card companies and easy lines of credit, are $14 trillion in debt. The government has pledged trillions toward the crisis, most of it borrowed or printed in the form of new money. It is borrowing trillions more to fund our wars in Afghanistan and Iraq. And no one states the obvious: We will never be able to pay these loans back. We are supposed to somehow spend our way out of the crisis and maintain our imperial project on credit. Let our kids worry about it. There is no coherent and realistic plan, one built around our severe limitations, to stanch the bleeding or ameliorate the mounting deprivations we will suffer as citizens. Contrast this with the national security state's strategies to crush potential civil unrest and you get a glimpse of the future. It doesn't look good.
"The primary near-term security concern of the United States is the global economic crisis and its geopolitical implications," Blair told the Senate. "The crisis has been ongoing for over a year, and economists are divided over whether and when we could hit bottom. Some even fear that the recession could further deepen and reach the level of the Great Depression. Of course, all of us recall the dramatic political consequences wrought by the economic turmoil of the 1920s and 1930s in Europe, the instability, and high levels of violent extremism."
The specter of social unrest was raised at the U.S. Army War College in November in a monograph [click on Policypointers' pdf link to see the report] titled "Known Unknowns: Unconventional 'Strategic Shocks' in Defense Strategy Development." The military must be prepared, the document warned, for a "violent, strategic dislocation inside the United States," which could be provoked by "unforeseen economic collapse," "purposeful domestic resistance," "pervasive public health emergencies" or "loss of functioning political and legal order." The "widespread civil violence," the document said, "would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security."
"An American government and defense establishment lulled into complacency by a long-secure domestic order would be forced to rapidly divest some or most external security commitments in order to address rapidly expanding human insecurity at home," it went on.
"Under the most extreme circumstances, this might include use of military force against hostile groups inside the United States. Further, DoD [the Department of Defense] would be, by necessity, an essential enabling hub for the continuity of political authority in a multi-state or nationwide civil conflict or disturbance," the document read.
In plain English, something bureaucrats and the military seem incapable of employing, this translates into the imposition of martial law and a de facto government being run out of the Department of Defense. They are considering it. So should you.
Adm. Blair warned the Senate that "roughly a quarter of the countries in the world have already experienced low-level instability such as government changes because of the current slowdown." He noted that the "bulk of anti-state demonstrations" internationally have been seen in Europe and the former Soviet Union, but this did not mean they could not spread to the United States. He told the senators that the collapse of the global financial system is "likely to produce a wave of economic crises in emerging market nations over the next year." He added that "much of Latin America, former Soviet Union states and sub-Saharan Africa lack sufficient cash reserves, access to international aid or credit, or other coping mechanism."
"When those growth rates go down, my gut tells me that there are going to be problems coming out of that, and we're looking for that," he said. He referred to "statistical modeling" showing that "economic crises increase the risk of regime-threatening instability if they persist over a one to two year period."
Blair articulated the newest narrative of fear. As the economic unraveling accelerates we will be told it is not the bearded Islamic extremists, although those in power will drag them out of the Halloween closet when they need to give us an exotic shock, but instead the domestic riffraff, environmentalists, anarchists, unions and enraged members of our dispossessed working class who threaten us. Crime, as it always does in times of turmoil, will grow. Those who oppose the iron fist of the state security apparatus will be lumped together in slick, corporate news reports with the growing criminal underclass.
The committee's Republican vice chairman, Sen. Christopher Bond of Missouri, not quite knowing what to make of Blair's testimony, said he was concerned that Blair was making the "conditions in the country" and the global economic crisis "the primary focus of the intelligence community."
The economic collapse has exposed the stupidity of our collective faith in a free market and the absurdity of an economy based on the goals of endless growth, consumption, borrowing and expansion. The ideology of unlimited growth failed to take into account the massive depletion of the world's resources, from fossil fuels to clean water to fish stocks to erosion, as well as overpopulation, global warming and climate change. The huge international flows of unregulated capital have wrecked the global financial system. An overvalued dollar (which will soon deflate), wild tech, stock and housing financial bubbles, unchecked greed, the decimation of our manufacturing sector, the empowerment of an oligarchic class, the corruption of our political elite, the impoverishment of workers, a bloated military and defense budget and unrestrained credit binges have conspired to bring us down. The financial crisis will soon become a currency crisis. This second shock will threaten our financial viability. We let the market rule. Now we are paying for it.
The corporate thieves, those who insisted they be paid tens of millions of dollars because they were the best and the brightest, have been exposed as con artists. Our elected officials, along with the press, have been exposed as corrupt and spineless corporate lackeys. Our business schools and intellectual elite have been exposed as frauds. The age of the West has ended. Look to China. Laissez-faire capitalism has destroyed itself. It is time to dust off your copies of Marx.
Chris Hedges, a Pulitzer prize-winning reporter, is a Senior Fellow at the Nation Institute. His latest book is Collateral Damage: America's War Against Iraqi Civilians.
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Friday, February 13, 2009

Bush Family Tentacles

Bush may be gone, but his influence -- and the forces that put him in office -- aren't.
Obama Should Worry About the Bush Family Tentacles Undermining His Plans
By Russ Baker, AlterNetPosted on January 22, 2009, Printed on February 13, 2009
As George W. Bush leaves office and Barack Obama takes over, we are in danger of missing the opportunity for change our new president has promised -- unless we come to grips with what the great historian and Librarian of Congress Daniel Boorstin called our "hidden history," not just of the past eight years but of the past half-century and more.
President Obama will face a staggering array of challenges, most, if not all, of which stem from the policies of Bush. But efforts at reform will fall short if we fail to probe and confront the powerful forces that wanted this disastrous administration in the White House in the first place -- and that remain ready and able to maintain their influence behind the scenes today.
Like most people, I took the failings of George W. Bush at face value: an inattentive, poorly prepared man full of hubris, who committed colossal blunders as a result. Then I spent five years researching my new book, Family of Secrets and came to see that the origins go much deeper. This backstory is getting almost no attention in the talking-heads debate over the Bush legacy. Yet it will continue to play, affecting our country and our lives, long after Bush leaves office.
A more profound explanation for the rise of George W. Bush came as I studied the concerted effort to convince the public that he was independent of, and often in disagreement with, his father. The reason for this, it turned out, was that exactly the opposite was true. W. may have been bumptious where his father was discreet, but in fact the son hewed closely to a playbook that guided his father and even his grandfather.
Over much of the last century, the Bushes have been serving the aims of a very narrow segment from within America's wealthiest interests and families -- typically through involvement in the most anti-New Deal investment banking circles, in the creation of a civilian intelligence service after World War II, and in some of that service's most secretive and still-unacknowledged operations.
Through declassified documents and interviews, I unearthed evidence that George W. Bush's father, the 41st president of the United States, had been working for the intelligence services no less than two decades before he was named CIA director in 1976. Time and again, Bush 41 and his allies have participated in clandestine operations to force presidents to do the bidding of oil and other resource-extraction interests, military contractors and financiers. Whenever a president showed independence or sought reforms that threatened entrenched interests, this group helped to ensure that he was politically attacked and neutralized, or even removed from office, through one means or another.
We are not dealing here with what are commonly dismissed as "conspiracy theories." We are dealing with a reality that is much more subtle, layered and pervasive -- a matrix of power in which crude conspiracies are rarely necessary and in which the execution or subsequent cover-up of anti-democratic acts become practically a norm.
In 1953, 23 years before he became CIA director as a supposed neophyte, George H.W. Bush began preparing to launch an oil-exploration company called Zapata Offshore. His father, investment banker Prescott Bush, had just taken a Senate seat from Connecticut; and his father's close friend Allen Dulles had just taken over the CIA. A staff CIA officer, Thomas J. Devine, purportedly "resigned" to go into the oil business with young George.
Bush then began to travel around the world. His itineraries had little apparent relationship to his limited and perennially unprofitable business enterprises. But they do make sense if the object was intelligence work. When his company at last put a few oil rigs in place, they ended up in highly sensitive spots, such as just off Castro's Cuba before the Bay of Pigs invasion.
As part of his travels, Bush senior even appeared in Dallas on the morning of the Kennedy assassination, although he would famously claim that he could not recall where he was at that historic moment. After leaving the city, he called the FBI with a false tip about a possible assassin, pointedly emphasizing that he was calling from outside Dallas. It is also intriguing to learn that an old friend of Bush's, a White Russian émigré with intelligence connections, shepherded Lee Harvey Oswald upon his return to America in the year preceding the assassination. In any event, when Lyndon Johnson replaced Kennedy, the oilmen and the intelligence-military establishment once again had a friend in the White House.
The pattern continued. New evidence suggests that Bush senior and his associates in the intelligence services, far from being the loyalists to Richard Nixon they claimed to be, had turned on the 35th president early in his administration, unceasingly working to weaken and eventually force him out. These efforts culminated in what appears to have been a deliberately botched Watergate office burglary -- led by former CIA officers.
Ironically, Nixon's career had been launched with the quiet backing of Wall Street finance figures upset with the man Nixon would defeat, a leading congressional supporter of banking reform, and Prescott Bush himself had played a key role. Yet, when Nixon finally achieved the presidency, he became surprisingly resistant to pressure from the very power centers that had helped him get to the top. He turned a deaf ear to the demands of the oil industry, battled with the CIA and cut the Pentagon out of the loop as he (and his aide Henry Kissinger) negotiated secretly with Moscow and Beijing.
These acts estranged Nixon from those who felt he had betrayed his sponsors -- men who had the means to do him in. Bush senior, it turns out, was closely allied with the surprising number of White House officials with covert ties to the intelligence service that surrounded Nixon. Through it all, Bush senior would routinely claim to be "out of the loop," as he would later pretend during the Iran-Contra scandal of the Reagan era, although we know that as vice president he was at the center of that and other abuses of power.
None of this let up after Nixon was forced to resign. His pliant successor, Gerald Ford, brought in young staffers named Richard Cheney and Donald Rumsfeld, and the two participated in the so-called Halloween massacre, which saw the administration veer in a far-right direction on foreign policy, a development that paved the way for the appointment of Bush senior as CIA director. This happened just as Congress was launched into the deepest investigation ever of intelligence abuses, and public voices were clamoring to reopen official inquiries into the assassinations of John F. Kennedy, his brother, Robert F. Kennedy and Martin Luther King Jr.
Then came Jimmy Carter, whose plans to reform the CIA were an echo of JFK's intent to scatter the CIA to the winds after the ruinous Bay of Pigs invasion. When Carter defeated Ford, ousted Bush from the CIA helm and sought to bring the intelligence juggernaut under control, he ended up deeply compromised by complex financial shenanigans orchestrated by figures from the same intelligence circles -- and undermined by the crisis with Iran, exacerbated by covert dissident CIA elements tied to Bush. Carter was a one-term president, defeated by a ticket with none other than George H.W. Bush, backed by a phalanx of CIA officers, as vice president. And then Bush senior became president himself.
Bill Clinton apparently grasped the pattern. He cultivated a friendly relationship with the elder Bush and instituted virtually no significant reforms in, or issued challenges to, either the intelligence or military establishments.
All this is relevant today because the furtive forces and pressures that haunted, and ultimately dominated, these past presidents have not abated.
Indeed, what the presidency of George W. Bush truly represented was the unfettered, most reckless manifestation of the objectives this group has pursued for many decades. In Bush 43's trademark pattern of showing the old man how it's done, the son was bringing virtually into the open the kinds of things his father preferred pursued sub-rosa. But behind the different façade it was the same game all over again.
The dirty tricks of Karl Rove, who got his first job under Bush 41 at the Republican Party during Watergate; the use of the Supreme Court to force an election their way; an early move to suppress the records of prior presidencies; the maniacal secrecy of Vice President Cheney; the false rationale used to justify the seizure of Iraqi oil reserves through invasion; the clampdown on dissent and the unauthorized domestic eavesdropping, the efforts to smear independent voices like Joseph Wilson (the husband of CIA officer Valerie Plame) and newsman Dan Rather; and last and perhaps most significant, the unleashing from government oversight of their friends and allies in finance and industry -- these and more emerged from the old dreams and methods of this anti-democratic culture.
Now, as a new president enters the White House promising reform, how much will he be able to achieve if his reforms step on the same big toes? We must begin to take seriously, and speak openly about, the true nature of the forces behind the Bush family enterprise. If we do not, we will find ourselves, several years from now, shaking our heads at new disaster, still unable to comprehend what has happened -- and why.
Russ Baker is an award-winning investigative reporter. He has written for the New Yorker, Vanity Fair, The Nation, the New York Times, the Washington Post, the Village Voice and Esquire. Baker received a 2005 Deadline Club award for his exclusive reporting on George W. Bush’s military record. Information on his new book, Family of Secrets: the Bush Dynasty, the Powerful Forces That Put It in the White House, and What Their Influence Means for America, can be found at
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