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The Extraordinary Pierre Omidyar November 18, 2013

Posted by rogerhollander in Media, Poverty, Right Wing.
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Roger’s note: This is an incredible piece of investigative journalism.  When I first read that Glenn Greenwald (I sincerely hope he has or will read this article) was leaving The Guardian to enter into a new journalist project financed by eBay founder,  the billionaire Pierre Omidyar, my initial response was, “Glenn, say it isn’t so.”  This was based on instinct.  It just didn’t smell right.  The article you are about to read pinpoints the source of the odor.  Greenwald’s work as an investigative journalist, first with his own Blog, then with salon.com, and finally with the Guardian, even prior to the Snowden revelations, was of vital importance with respect to its exposing the crimes of the Bush and Obama administrations.  In a sense, the I.F. Stone of our day.  Even if Omidyar wasn’t the sleeze bucket neo-Liberal that is pictured by Ames and Levin, you don’t magically overnight create independent journalism via anyone’s big bucks.  Salon and The Guardian have roots and a history of journalistic development for which there is no substitute.  Apart from exposing Omidyar, this article is a clinic on the way the ultra and neo-fascist right is working to destroy what is left of the democratic public sector; and we know from Germany and Italy in the 1930s what to expect when private corporations are in total control of the state.

By Mark Ames, and Yasha Levin

http://www.nsfwcorp.com, 11:51 a.m. November 15, 2013

“We ought to be looking at business as a force for good.”Pierre Omidyar

“Like eBay, Omidyar Network harnesses the power of markets to enable people to tap their true potential.”Omidyar Network, “Frequently Asked Questions”

* * The world knows very little about the political motivations of Pierre Omidyar, the eBay billionaire who is founding (and funding) a quarter-billion-dollar journalism venture with Glenn Greenwald, Laura Poitras and Jeremy Scahill. What we do know is this: Pierre Omidyar is a very special kind of technology billionaire.

We know this because America’s sharpest journalism critics have told us.

In a piece headlined “The Extraordinary Promise of the New Greenwald-Omidyar Venture”, The Columbia Journalism Review gushed over the announcement of Omidyar’s project. And just in case their point wasn’t clear, they added the amazing subhead, “Adversarial muckrakers + civic-minded billionaire = a whole new world.”

Ah yes, the fabled “civic-minded billionaire”—you’ll find him two doors down from the tooth fairy.

But seriously folks, CJR really, really wants you to know that Omidyar is a breed apart: nothing like the Randian Silicon Valley libertarian we’ve become used to seeing.

“…billionaires don’t tend to like the kind of authority-questioning journalism that upsets the status quo. Billionaires tend to have a finger in every pie: powerful friends they don’t want annoyed and business interests they don’t want looked at.

“By hiring Greenwald & Co., Omidyar is making a clear statement that he’s the billionaire exception….It’s like Izzy Stone running into a civic-minded plastics billionaire determined to take I.F. Stone’s Weekly large back in the day.”

Later, the CJR “UPDATED” the piece with this missing bit of “oops”:

“(UPDATE: I should disclose that the Omidyar Network helps fund CJR, something I didn’t know until shortly after I published this post.)”

No biggie. Honest mistake. And anyway, plenty of others rushed to agree with CJR’s assessment. Media critic Jack Shafer at Reuters described Omidyar’s politics and ideology as “close to being a clean slate,” repeatedly praising the journalism venture’s and Omidyar’s “idealism.” The “NewCo” venture with Greenwald “harkens back to the techno-idealism of the 1980s and 1990s, when the first impulse of computer scientists, programmers, and other techies was to change the world, not make more money,” Shafer wrote, ending his piece:

“As welcome as Omidyar’s money is, his commitment to the investigative form and an open society is what I’m grateful for this afternoon. You can never uphold the correct verdict too often.”

What all of these orgasmic accounts of Omidyar’s “idealism” have in common is a total absence of skepticism. America’s smartest media minds simply assume that Omidyar is an “exceptional” billionaire, a “civic-minded billionaire” driven by “idealism” rather than by profits. The evidence for this view is Pierre Omidyar’s massive nonprofit venture, Omidyar Network, which has distributed hundreds of millions of dollars to causes all across the world.

And yet what no one seems able to specify is exactly what ideology Omidyar Network promotes. What does Omidyar’s “idealism” mean in practice, and is it really so different from the non-idealism of other, presumably bad, billionaires? It’s almost as if journalists can’t answer those questions because they haven’t bothered asking them.

So let’s go ahead and do that now.

Since its founding in 2004, Omidyar Network has committed nearly $300 million to a range of nonprofit and for-profit “charity” outfits. An examination of the ideas behind the Omidyar Network and of the investments it has made suggests that its founder is anything but a “different” sort of billionaire. Instead, what emerges is almost a caricature of neoliberal ideology, complete with the trail of destruction that ensues when that ideology is put into practice. The generous support of the Omidyar Network goes toward “fighting poverty” through micro-lending, reducing third-world illiteracy rates by privatizing education and protecting human rights by expanding property titles (“private property rights”) into slums and villages across the developing world.

In short, Omidyar Network’s philanthropy reveals Omidyar as a free-market zealot with an almost mystical faith in the power of “markets” to transform the world, end poverty, and improve lives—one micro-individual at a time.

All the neoliberal guru cant about solving the world’s poverty problems by unlocking the hidden “micro-entrepreneurial” spirit of every starving Third Worlder is put into practice by Omidyar Network’s investments. Charity without profit motive is considered suspect at best, subject to the laws of unintended consequences; good can only come from markets unleashed, and that translates into an ideology inherently hostile to government, democracy, public politics, redistribution of land and wealth, and anything smacking of social welfare or social justice.

In literature published by Omidyar Network, the assumption is that technology is an end in itself, that it naturally creates beneficial progress, and that the world’s problems can be solved most effectively with for-profit business solutions.

The most charitable thing one can say about Omidyar’s nonprofit network is that it reflects all the worst clichés of contemporary neoliberal faith. In reality, it’s much worse than that. In many regions, Omidyar Network investments have helped fund programs that create worsening conditions for the world’s underclass, widening inequalities, enhancing exploitation, pushing millions of people into crippling debt and supporting anti-poverty programs that, in some cases, resulted in mass-suicide by the rural poor.

* * Pierre Omidyar was one of the biggest early backers of the for-profit micro-lending industry. Through Omidyar Network, as well as personal gifts and investments, he has funnelled around $200 million into various micro-lending companies and projects over the past decade, with the goal of establishing an investment-grade microfinance sector that would be plugged into Wall Street and global finance. The neoliberal theory promised to unleash billions of new micro-entrepreneurs; the stark reality is that it saddled untold numbers with crushing debt and despair.

One of his first major investments into micro-lending came in 2005, when Pierre Omidyar and his wife Pam gave Tufts University, their alma mater, $100 million to create the “Omidyar-Tufts Microfinance Fund,” a managed for-profit fund dedicated to jump-starting the growth of the micro-finance industry. At the time, Tufts announced that Omidyar’s gift was the “largest private allocation of capital to microfinance by an individual or family.”

With the Tufts fund, Omidyar wanted to go beyond mere charitable donations to specific micro-lending organizations that targeted the developing world’s poorest. At the same time, he wanted to create a whole new environment in which for-profit micro-lending companies could be self-sustaining and generate big enough profits to attract serious global investors.

This idea was at the core of Omidyar’s vision of philanthropy: he believed that microfinance would eradicate poverty faster and better if it was run on a for-profit basis, and not like a charity.

“If you want to reach global scale — and we’re talking about hundreds of millions of people who need this — you can’t do it with philanthropy capital. There’s not enough charity capital out there. By connecting with an institutional investor like a university, we would like to increase the level of professional investor involvement in this sector to try to stimulate more commercially viable investment products,” Pierre Omidyar said in an interview at the time. “We ought to be looking at business as a force for good.”

The idea behind micro-loans is very simple and seductive. It goes something like this: the only thing that prevents the hundreds of millions of people living in extreme poverty from achieving financial success is their lack of access to credit. Give them access to micro-loans—referred to in Silicon Valley as “seed capital”—and these would-be successful business-peasants and illiterate shantytown entrepreneurs would pluck themselves out of the muck by their own homemade sandal straps. Just think of it: hundreds of millions of peasants working as micro-individuals, taking out micro-loans, making micro-rational investments into their micro-businesses, dutifully paying their micro-loan payments on time and working in concert to harness the deregulated power of the markets to collectively lift society out of poverty. It’s a grand neoliberal vision.

To that end, Omidyar has directed about a third of the Omidyar Network investment fund—or about $100 million—to support the micro-lending industry. The foundation calls this initiative “financial inclusion.”

Shockingly, micro-loans aren’t all that they’ve cracked up to be. After years of observation and multiple studies, it turns out that the people benefiting most from micro-loans are the big global financial players: hedge funds, banks and the usual Wall Street hucksters. Meanwhile, the majority of the world’s micro-debtors are either no better off or have been sucked into a morass of crippling debt and even deeper poverty, which offers no escape but death.

Take SKS Microfinance, an Omidyar-backed Indian micro-lender whose predatory lending practices and aggressive collection tactics have caused a rash of suicides across India.

Omidyar funded SKS through Unitus, a microfinance private equity fund bankrolled by the Omidyar Network to the tune of at least $11.7 million. ON boosted SKS in its promotional materials as a micro-lender that’s “serving the rural poor in India” and that exemplifies a company that’s providing “people with the means to address their needs and improve their lives.”

In 2010, SKS made headlines and stirred up bitter controversy about the role that profits should play in anti-poverty initiatives when the company went public with an IPO that generated about $358 million, giving SKS a market valuation of more than $1.6 billion. The IPO made millions for its wealthy investors, including the Omidyar-backed Unitus fund, which earned a cool $5 million profit from the SKS IPO, according to the Puget Sound Business Journal.

Some were bothered, but others saw it as proof that the power of the markets could be harnessed to succeed where traditional charity programs supposedly hadn’t. The New York Times reported:

“An Indian company with rich American backers is about to raise up to $350 million in a stock offering closely watched by philanthropists around the world, showing that big profits can be made from small helping-hand loans to poor cowherds and basket weavers.”

Controversy or not, SKS embodied Omidyar’s vision of philanthropy: it was a for-profit corporation that fought poverty while generating lucrative returns for its investors. Here would be proof-positive that the profit motive makes everyone a winner.

And then reality set in.

In 2012, it emerged that while the SKS IPO was making millions for its wealthy investors, hundreds of heavily indebted residents of India’s Andhra Pradesh state were driven to despair and suicide by the company’s cruel and aggressive debt-collection practices. The rash of suicides soared right at the peak of a large micro-lending bubble in Andhra Pradesh, in which many of the poor were taking out multiple micro-loans to cover previous loans that they could no longer pay. It was subprime lending fraud taken to the poorest regions of the world, stripping them of what little they had to live on. It got to the point where the Chief Minister of Andrah Pradesh publicly appealed to the state’s youth and young women not to commit suicide, telling them, “Your lives are valuable.”

The AP conducted a stunning in-depth investigation of the SKS suicides, and their reporting needs to be quoted at length to understand just how evil this program is. The article begins:

“First they were stripped of their utensils, furniture, mobile phones, televisions, ration cards and heirloom gold jewelry. Then, some of them drank pesticide. One woman threw herself in a pond. Another jumped into a well with her children.

“Sometimes, the debt collectors watched nearby.”

What prompted the AP investigation was the gulf between the reported rash of suicides linked to SKS debt collectors, and SKS’s public statements denying it had knowledge of or any role in the predatory lending abuses. However, the AP got a hold of internal SKS documents that contradicted their public denials:

“More than 200 poor, debt-ridden residents of Andhra Pradesh killed themselves in late 2010, according to media reports compiled by the government of the south Indian state. The state blamed microfinance companies – which give small loans intended to lift up the very poor – for fueling a frenzy of overindebtedness and then pressuring borrowers so relentlessly that some took their own lives.

“The companies, including market leader SKS Microfinance, denied it.

“However, internal documents obtained by The Associated Press, as well as interviews with more than a dozen current and former employees, independent researchers and videotaped testimony from the families of the dead, show top SKS officials had information implicating company employees in some of the suicides.”

The AP investigation and internal reports showed just how brutal the SKS microfinancing program was, how women were particularly targeted because of their heightened sense of shame and community responsibility—here is the brutal reality of financial capitalism compared to the utopian blather mouthed at Davos conferences, or in the slick pamphlets issued by the Omidyar Network:

“Both reports said SKS employees had verbally harassed over-indebted borrowers, forced them to pawn valuable items, incited other borrowers to humiliate them and orchestrated sit-ins outside their homes to publicly shame them. In some cases, the SKS staff physically harassed defaulters, according to the report commissioned by the company. Only in death would the debts be forgiven.

“The videos and reports tell stark stories:

“One woman drank pesticide and died a day after an SKS loan agent told her to prostitute her daughters to pay off her debt. She had been given 150,000 rupees ($3,000) in loans but only made 600 rupees ($12) a week.

“Another SKS debt collector told a delinquent borrower to drown herself in a pond if she wanted her loan waived. The next day, she did. She left behind four children.

“One agent blocked a woman from bringing her young son, weak with diarrhea, to the hospital, demanding payment first. Other borrowers, who could not get any new loans until she paid, told her that if she wanted to die, they would bring her pesticide. An SKS staff member was there when she drank the poison. She survived.

“An 18-year-old girl, pressured until she handed over 150 rupees ($3)—meant for a school examination fee—also drank pesticide. She left a suicide note: ‘Work hard and earn money. Do not take loans.'”

As a result of the bad press this scandal caused, the Omidyar Network deleted its Unitus investment from its website—nor does Omidyar boast of its investments in SKS Microfinance any longer. Meanwhile, Unitus mysteriously dissolved itself and laid off all of its employees right around the time of the IPO, under a cloud of suspicion that Unitus insiders made huge personal profits from the venture, profits that in theory were supposed to be reinvested into expanding micro-lending for the poor.

Thus spoke the profit motive.

Curiously, in the aftermath of the SKS micro-lending scandal, Omidyar Network was dragged into another political scandal in India when it was revealed that Omidyar and the Ford Foundation were placing their own paid researchers onto the staffs of India’s MPs. The program, called Legislative Assistants to MPs (LAMPs), was funded with $1 million from Omidyar Network and $855,000 from the Ford Foundation. It was shut down last year after India’s Ministry of Home Affairs complained about foreign lobbying influencing Indian MPs, and promised to investigate how Omidyar-funded research for India’s parliament may have been “colored” by an agenda.

But SKS is not the only microfinancing investment gone bad. The biggest and most reputable micro-lenders, including those funded by the Omidyar Network, have come under serious and sustained criticism for predatory interest rates and their aggressive debt-collection techniques.

Take BRAC, another big beneficiary of Omidyar’s efforts to boost “financial inclusion.”

Started in the early 1970s as a war relief organization, BRAC has grown into the largest non-governmental organization in the world. It employs over 100,000 people in countries across the globe. While BRAC is known mostly for its micro-lending operation activities, the outfit is a diversified nonprofit business operation. It is involved in education, healthcare and even develops its own hybrid seed varieties. Much of BRAC’s operations are financed by its micro-lending activities.

Omidyar Network praises BRAC for its work to “empower the poor to improve their own lives,” and has given at least $8 million to help BRAC set up micro-lending banking infrastructure in Liberia and Sierra Leone.

But BRAC seems to worry more about its own bottom line than it does about the well-being of its impoverished borrowers, the majority of whom are women and who pay an average annual interest rate of 40 percent.

This twisted sense of priority could be seen after one of the worst cyclones in the history of Bangladesh left thousands dead in 2007, destroying entire villages and towns in its path. In the cyclone’s wake, the Omidyar-funded BRAC micro-lending debt collectors showed up at the disaster zone along with other micro-lenders, and went to work aggressively shaking down borrowers, forcing some victims (mostly women) to go so far as to sell their relief/aid materials, or to take out secondary loans to pay off the first loans.

According to a study about micro-lenders in the aftermath of Cyclone Sidr:

“Sidr victims who lost almost everything in the cyclone, experienced pressure and harassment from non­governmental organisations (NGOs) for repayment of microcredit instalments. Such intense pressure led some of the Sidr­affected borrowers to sell out the relief materials they received from different sources. Such pressure for loan recovery came from large organisations such as BRAC, ASA and even the Nobel Prize winning organisation Grameen Bank.

“Even the most severely affected people are expected to pay back in a weekly basis, with the prevailing interest rate. No system of ‘break’ or ‘holiday’ period is available in the banks’ current charter. No exceptions are made during a time of natural calamity. The harsh rules practised by the microcredit lender organisations led the disaster affected people even selling their relief assistance. Some even had to sell their leftover belongings to pay back their weekly instalments.”

These tactics may be harsh, but they pay off for micro-lenders. And it’s a lucrative operation: BRAC primarily targets women, offers loans with predatory interest rates and uses traditional values and close village relationships to shame and pressure borrowers into selling and doing whatever they can to make their weekly payments. It works. Loan recovery rates for the industry average between 95 and 98 percent. For BRAC, that rate was a comfy 99.3 percent.

So do predatory micro-loans really help lift the world’s poorest people out of poverty? Neoliberal ideology says they do — and the Omidyar Network represents one of the purest distillations of that ideology put into practice in the poorest and most vulnerable parts of the world.

As Cambridge University economics professor Ha-Joon Chang argued, saying of micro-lending:

“[It] constitutes a powerful institutional and political barrier to sustainable economic and social development, and so also to poverty reduction. Finally, we suggest that continued support for microfinance in international development policy circles cannot be divorced from its supreme serviceability to the neoliberal/globalization agenda.”

Omidyar Network has followed the same disastrous neoliberal script in other areas of investment, particularly its investments into privatizing public schools in the US and in poor regions of Africa.

One of the earliest Omidyar investments went to an online private charity website for needy public schools here in the US. As David Sirota wrote, huge billionaire foundations and corporations have been holding children hostage by starving public-school funding and replacing it with “charity” money from the likes of the Wal-Mart Foundation, Bill and Melinda Gates Foundation and Broad Foundation. We can add the Omidyar Network to this list as well.

Omidyar’s foundation invested in the same idea, but with a web 2.0 crowd-source twist: DonorsChoose.org allows individuals to pledge amounts as small as $10, and allows school teachers to get online asking for small sums to help their classrooms. The end result, of course, is that it normalizes the continued strangling of public schools and the sense that only private funding can save education.

Omidyar poured millions into DonorsChoose and organized donations from other Silicon Valley donors. At first, most public school teachers didn’t see the angle; many used the resource to raise funds for their own classrooms.

It wasn’t until DonorsChoose announced its partnership with the anti-public-education film “Waiting For Superman” that teachers realized they’d been duped. The movie promoted the myth that education could only be saved by the likes of Tea Party-backed school “reform” advocate Michelle Rhee. Teachers organized a boycott of DonorsChoose after the Omidyar-funded group announced it was essentially bribing its members with a $15 gift certificate to anyone who bought tickets for “Waiting for Superman.”

Two years later, DonorsChoose partnered and promoted yet another right-wing teacher-bashing propaganda film, “Won’t Back Down.”

Overseas, the Omidyar Network is embarking on a school privatization program that will make DonorsChoose look like Mother Theresa’s handiwork. Omidyar provided seed capital for a new Africa-based for-profit private school enterprise for the poor called Bridge International. In 2009, ON gave Bridge a total of $1.8 million; Matt Bannick, the top figure (managing partner) in the Omidyar Network, sits on Bridge International’s board of directors.

Bridge International’s first schools are being built in Kenya, and are slated to expand across the sub-Sahara, hoping to rope millions of poor African kids into its schools. Bridge’s strategic partner is the for-profit education giant, Pearson. Diane Ravitch, former US Assistant Secretary of Education and critic of school “reform” efforts, has warned about Pearson’s near-monopolistic power influencing the privatization of American education (see Ravitch’s article“The Pearsonization of the American Mind.”)

The idea behind Bridge International is to provide a franchised “school in a box” model under which each school teaches the exact same curriculum at the exact same time to every student. Teachers are given minimal training—they’re merely required to teach according to the script given to them and read out to their students, scripts delivered through Nook tablets. Students pay $5 a month—a lot for each student in areas as poor as sub-Saharan Africa. Currently one new Bridge International school is opening every 2.5 days around Kenya, overtaking public education—with plans to expand further.

It sounds like a good idea, but the problem is that Bridge’s business model has a very narrow set of supporters, namely: free-market think-tanks, the global for-profit education industry and proponents of a neoliberal utopia who want to defund public education and replace it with private schooling. Bridge is only a few years old, but criticism of its educational model is already piling up—even from centrist pro-business thinktanks like the Brookings Institution. Even at $4 or $5 a month, Bridge’s “low cost” education is too expensive for many in the developing world, forcing children to go to work and making families choose between buying food and paying for education. Naturally, food wins out. And that simply means that many children can’t afford to go school, which only increases and reinforces stratification and inequality.

The fight against illiteracy requires free, quality education that’s available to all children. What it doesn’t need is a bunch of neoliberal techno-disruptors who want to turn education into a for-profit industry that provides schooling only to those who can afford it. And anyway, the very notion that you can squeeze enough profit from millions of the poorest children in the world to attract mega venture capital, while providing quality education is absurd. That profit money is extracted from the very people Bridge is supposedly trying to help.

Still think that Pierre Omidyar is a “different” type of billionaire? Still convinced he’s a one-of-a-kind “civic-minded” idealist?

Then you might want to ask yourself why Omidyar is so smitten by the ideas of an economist known as “The Friedrich Hayek of Latin America.” His name is Hernando de Soto and he’s been adored by everyone from Milton Friedman to Margaret Thatcher to the Koch brothers. Omidyar Network poured millions of nonprofit dollars into subsidizing his ideas, helping put them into practice in poor slums around the developing world.

In February 2011, the Omidyar Network announced a hefty $4.96 million grant to a Peru-based free-market think tank, the Institute for Liberty & Democracy (ILD).

Perhaps no single investment by Omidyar more clearly reveals his orthodox neoliberal vision for the world—and what constitutes “civic-mindedness”—than his support for the ILD and its founder and president, Hernando De Soto, whom the ON has tapped to participate in other Omidyar-sponsored events.

De Soto is a celebrity in the world of neoliberal/libertarian gurus. He and his Institute for Liberty & Democracy are credited with popularizing a free-market version of Third World land reform and turning it into policy in city slums all across the developing world. Whereas “land reform” in countries like Peru—dominated by a tiny handful of landowning families—used to mean land redistribution, Hernando De Soto came up with a counter-idea more amenable to the Haves: give property title to the country’s poor masses, so that they’d have a secure and legal title to their shanties, shacks, and whatever land they might claim to live on or own.

De Soto’s pitch essentially comes down to this: Give the poor masses a legal “stake” in whatever meager property they live in, and that will “unleash” their inner entrepreneurial spirit and all the national “hidden capital” lying dormant beneath their shanty floors. De Soto claimed that if the poor living in Lima’s vast shantytowns were given legal title ownership over their shacks, they could then use that legal title as collateral to take out microfinance loans, which would then be used to launch their micro-entrepreneurial careers. Newly-created property holders would also have a “stake” in the ruling political and economic system. It’s the sort of cant that makes perfect sense to the Davos set (where De Soto is a star) but that has absolutely zero relevance to problems of entrenched poverty around the world.

Since the Omidyar Network names “property rights” as one of the five areas of focus, it’s no surprise that Omidyar money would eventually find its way into Hernando De Soto’s free-market ideas mill. In 2011, Omidyar not only gave De Soto $5 million to advance his ideas—he also tapped De Soto to serve as a judge in an Omidyar-sponsored competition for projects focused on improving property rights for the poor. The more you know about Hernando De Soto, the harder it is to see Omidyar’s financial backing as “idealistic” or “civic-minded.”

For one thing, De Soto is the favorite of the very same billionaire brothers who play villains to Omidyar’s supposed hero—yes, the reviled Koch brothers. In 2004, the libertarian Cato Institute (neé “The Charles Koch Foundation”) awarded Hernando De Soto its biannual “Milton Friedman Prize”—which comes with a hefty $500,000 check—for “empowering the poor” and “advancing the cause of liberty.” De Soto was chosen by a prize jury consisting of such notable humanitarians as former Pinochet labor minister Jose Piñera, Vladimir Putin’s economic advisor Andrei Illarionov, Washington Post neoconservative columnist Anne Applebaum, FedEx CEO Fred Smith, and Milton Friedman’s wife Rosie. Milton was in the audience during the awards ceremony; he heartily approved.

Indeed, Hernando De Soto is de facto royalty in the world of neoliberal-libertarian gurus—he’s been called “The Friedrich von Hayek of Latin America,” not least because Hayek launched De Soto’s career as a guru more than three decades ago.

So who is Hernando De Soto, where do his ideas come from, and why might Pierre Omidyar think him deserving of five million dollars — ten times the amount the Koch Brothers awarded him?

De Soto was born into an elite “white European” family in Peru, who fled into exile in the West following Peru’s 1948 coup—his father was the secretary to the deposed president. Hernando spent most of the next 30 years in Switzerland, getting his education at elite schools, working his way up various international institutions based in Geneva, serving as the president of a Geneva-based copper cartel outfit, the International Council of Copper Exporting Countries, and working as an official in GATT (General Agreement on Trade and Tariffs).

De Soto didn’t return to live in Peru until the end of the 1970s, to oversee a new gold placer mining company he’d formed with a group of foreign investors. The mining company’s profits suffered due to Peru’s weak property laws and almost non-existent cultural appreciation of property title, especially among the country’s poor masses—De Soto’s investors pulled out of the mining venture after visiting the company’s gold mines and seeing hundreds of peasants panning on the company’s concessions. That experience inspired De Soto to change Peruvians’ political assumptions regarding property rights. Rather than start off by trying to convince them that foreign mining firms should have exclusive rights to gold from traditionally communal Peruvian lands, De Soto came up with a clever end-around idea: giving property title to the masses of Peru’s poor living in the vast shanties and shacks in the slums of Lima and cities beyond. It was a long-term strategy to alter cultural expectations about property and ownership, thereby improving the investment climate for mining companies and other investors. The point was to align the masses’ assumptions about property ownership with those of the banana republic’s handful of rich landowning families.

In 1979, De Soto organized a conference in Peru’s capital Lima, featuring Milton Friedman and Friedrich von Hayek as speakers and guests. At the time, both Friedman and Hayek were serving as key advisors to General Augusto Pinochet’s “shock therapy” program in nearby Chile, an economic experiment that combined libertarian market policies with concentration camp terror.

Two years after De Soto’s successful conference in Lima, in 1981, Hayek helped De Soto set up his own free-market think tank in Lima, the “Institute for Liberty and Democracy” (ILD). The ILD became the first of a large international network of right-wing neoliberal think tanks connected to the Mother Ships—Cato Institute, Heritage Foundation, and Britain’s Institute for Economic Affairs, Margaret Thatcher’s go-to think tank. By 1983, De Soto’s Institute was also receiving heavy funding from Reagan’s Cold War front group, the National Endowment for Democracy, which promoted free-market think tanks and programs around the world, and by the end of Reagan decade, De Soto produced his first manifesto, “The Other Path”—a play on the name of Peru’s Maoist guerrilla group, Shining Path, then fighting a bloody war for power. But whereas the Shining Path’s political program called for nationalizing and redistributing property, most of which was in the hands of a few rich families, De Soto’s “Other Path” called for maintaining property distribution as it was, and legalizing its current structure by democratizing property titles, the pieces of paper with the stamps. Everyone would become a micro-oligarch and micro-landowner under this scheme…

With help and funding from US and international institutions, De Soto quickly became a powerful political force behind the scenes. In 1990, De Soto insinuated himself into the inner circle of newly-elected president Alberto Fujimori, who quickly turned into a brutal dictator, and is currently serving a 25-year prison sentence for crimes against humanity, murder, kidnapping, and illegal wiretapping.

Under De Soto’s influence, Fujimori’s politics suddenly changed; almost overnight, the populist Keynsian candidate became the free-market authoritarian “Chinochet” he governed as. As Fujimori’s top advisor, Hernando De Soto was the architect of so-called “Fujishock” therapy applied to Peru’s economy. Officially, De Soto served as Fujimori’s drug czar from 1990-1992, an unusual role for an economist given the fact that Peru’s army was fighting a brutal war with Peru’s powerful cocaine drug lords. At the time Peru was the world’s largest cocaine producer; as drug czar, Hernando De Soto therefore positioned himself as the point-man between Peru’s military and security services, America’s DEA and drug czar under the first President Bush, and Peru’s president Alberto Fujimori. It’s the sort of position that you’d want to have if you wanted “deep state” power rather than mere ministerial power.

During those first two years when De Soto served under Fujimori, human rights abuses were rampant. Fujimori death squads—with names like the “Grupo Colina”—targeted labor unions and government critics and their families. Two of the worst massacres committed under Fujimori’s reign, and for which he was later jailed, took place while De Soto served as his advisor and drug czar.

The harsh free-market shock-therapy program that De Soto convinced Fujimori to implement resulted in mass misery for Peru. During the two years De Soto served as Fujimori’s advisor, real wages plunged 40%, the poverty rate rose to over 54% of the population, and the percentage of the workforce that was either unemployed or underemployed soared to 87.3%.

But while the country suffered, De Soto’s Institute for Liberty and Democracy—the outfit that Omidyar gave $5 million to in 2011—thrived: its staff grew to over 100 as funds poured in. A World Bank staffer who worked with the ILD described it as,

“a kind of school for the country. Most of the important ministers, lawyers, journalists, and economists in Peru are ILD alumni.”

In 1992, Fujimori orchestrated a constitutional coup, disbanding Peru’s Congress and its courts, and imposing emergency rule-by-decree. It was another variation of the same Pinochet blueprint.

Just before Fujimori’s coup, De Soto indemnified himself by officially resigning from the cabinet. However in the weeks and months after the coup, De Soto provided crucial PR cover, downplaying the coup to the foreign press. For instance, De Soto told the Los Angeles Times that the public should temper their judgment of Fujimori’s coup:

“You’ve got to see this as the trial and error of a president who’s trying to find his way.”

In the New York Times, De Soto spun the coup as willed by the people, the ultimate democratic politics:

“People are fed up, fed up…[Fujimori] has attacked two hated institutions at just the right time. There is an enormous need to believe in him.”

Years later, Fujimori’s notorious spy chief Vladimiro Montesinos testified to Peru’s Congress that De Soto helped mastermind the 1992 coup. De Soto denied involvement; but in 2011, two years after Fujimori was jailed for crimes against humanity, De Soto joined the presidential campaign for Keiko Fujimori, the jailed dictator’s daughter and leader of Fujimori’s right-wing party. Keiko Fujimori ran on a platform promising to free her father from prison if she won; De Soto spent much of the campaign red-baiting her opponent as a Communist. That led Peru’s Nobel Prize-winning author Mario Vargas Llosa to denounce De Soto as a “fujimontesenista” with “few democratic credentials.”

So in the same year that De Soto was trying to put the daughter of Peru’s Pinochet in power and to spring the dictator from prison, Omidyar Network awarded him $5 million.

It was during Fujimori’s dictatorial emergency rule, from 1992-94, that De Soto rolled out a property-title pilot program in Lima, in which 200,000 households were given formal title. In 1996, Fujimori implemented De Soto’s property-titling program on a national scale, with help from the World Bank and a new government property agency staffed by people from De Soto’s Institute for Liberty and Democracy. By 2000, the magical promise of an explosion in bank credits to all the new micro-property owners never materialized; in fact, there was no noticeable difference in bank lending to the poor whatsoever, whether they had property title or not.

The World Bank and the project’s neoliberal supporters led by Hernando De Soto were not happy with data showing no uptick in lending, which threatened to unravel the entire happy theory behind property titling as the answer to Third World poverty. De Soto was in the process of peddling the same property-titling program to countries around the world; data was needed to justify the program. So the World Bank funded a new study in Peru in the early 2000s, and discovered something startling: In homes that had formal property titles, the parents in those homes spent up to 40% more time outside of their homes than they did before they were given title. De Soto took that statistic and argued that it was a good thing because it proved giving property title to homeowners made them feel secure enough to leave their shanties and shacks. The assumption was that in the dark days before shanty dwellers had legal titles, they were too scared to leave their shacks lest some other savage steal it from them while they were out shopping.

No one ever conclusively explained why shanty parents were spending so much more time outside of their homes, but the important thing was that it made everyone forget the utter failure of the property title program’s core promise—that property titles would ignite micro-lending thanks to the collateral of the micro-entrepreneur’s micro-shack as collateral. Thanks to De Soto’s salesmanship and the backing of the world’s neoliberal nomenklatura — Bill Clinton called De Soto “the world’s greatest living economist” and he was praised by everyone from Milton Friedman to Vladimir Putin to Margaret Thatcher. The disappointing results in Peru were ignored, and De Soto’s program was extended to developing countries around the world including Egypt, Cambodia, the Philippines, Indonesia and elsewhere. And in nearly every case, De Soto’s Institute for Liberty and Democracy has taken the lead in advising governments and selling the dream of turning titled slum-dwellers into micro-entrepreneurs.

The real change brought by De Soto’s property-titling program has ranged from nil to nightmarish.

In Cambodia, where the World Bank implemented De Soto’s land-titling program in 2001, poor and vulnerable people in the capital Phnom Penh have suffered at the hands of land developers and speculators who’ve used arson, police corruption and violence to forcibly evict roughly 10% of the city’s population from their homes in more valuable districts, relocating them to the city outskirts.

An article in Slate titled “The De Soto Delusion” described what happened in Cambodia when the land-titling program was first implemented:

“In the nine months or so leading up to the project kickoff, a devastating series of slum fires and forced evictions purged 23,000 squatters from tracts of untitled land in the heart of Phnom Penh. These squatters were then plopped onto dusty relocation sites several miles outside of the city, where there were no jobs and where the price of commuting to and from central Phnom Penh (about $2 per day) surpassed whatever daily wage they had been earning in town before the fires. Meanwhile, the burned-out inner city land passed immediately to some of the wealthiest property developers in the country.”

De Soto and his Institute for Liberty and Democracy have advised property-title programs elsewhere too—Haiti, Dominican Republic, Panama, Russia—again with results ranging from nil to bad. Even where it doesn’t lead to mass evictions and violence, it has the effect of shifting a greater tax burden onto the poor, who end up paying more in property taxes, and of forcing them to pony up for costly filing fees to gain title, fees that they often cannot afford. Property title in and of itself—without a whole range of reforms in governance, corruption, education, income, wealth distribution and so on—is clearly no panacea. But it does provide an alternative to programs that give money to the poor and redistribute wealth, and that alone is a good thing, if you’re the type smitten by Hernando De Soto—as Omidyar clearly is.

Studies of property-titling programs in the slums of Brazil and Manila revealed that it created a new bitterly competitive culture and bifurcation, in which a small handful of titled slum dwellers quickly learn to benefit by turning into micro-slumlords renting out dwellings to lesser slum dwellers, who subsequently find themselves forced to pay monthly fees for their shanty rooms—creating an underclass within the underclass. De Soto has described these slums as “acres of diamonds”—wealth waiting to be unlocked by property titling—and his acolytes even coined a new acronym for slums: “Strategic Low-income Urban Management Systems.”

All of which begs the obvious question: If De Soto’s property-title program is such a proven failure in case after case, why is it so popular among the world’s political and business elites?

The answer is rather obvious: It offers a simple, low-cost, technocratic market solution to the problem of global poverty—a complex and costly problem that can only be alleviated by dedicating huge amounts of resources and a very different politics from the one that tells us that markets are god, markets can solve everything. Even before Omidyar committed $5 million to the dark plutocratic “idealism” De Soto represents, he was Tweeting his admiration for De Soto:

“Brilliant dinner with Hernando de Soto. Property rights underlie and enable everything.”

Indeed, property rights underlie and enable everything Omidyar wants to hear—but distract and divert from what the targets of those programs might actually need or be asking for.

Which brings us back to the wonderful words written about Pierre Omidyar last month: Where is the proof that he’s a “civic-minded” billionaire, a “different” billionaire, an “idealistic” billionaire who’s in it for ideals and not for profit? How is Omidyar any different from any other billionaire—when he is funding the same programs and pushing the same vision for the world backed by the Kochs, Soros, Gates, and every other neoliberal billionaire?

When you scratch the surface of his investments and get a sense of what sort of ideal world he’d like to make, it becomes clear that Omidyar is no different from his peers.

And the reason that matters, of course, is because Pierre Omidyar’s dystopian vision is merging with Glenn Greenwald’s and Laura Poitras’ monopoly on the crown jewels of the National Security Agency — the world’s secrets, our secrets — and using the value of those secrets as the capital for what’s being billed as an entirely new, idealistic media project, an idealism that the CJR and others promise will not shy away from taking on power.

The question, however, is what defines power to a neoliberal mind? We’re going to take a wild guess here and say: The State.

So brace yourself, you’re about to get something you’ve never seen before: billionaire-backed journalism taking on the power of the state. How radical is that? To quote “60 Minutes” producer Lowell Bergman:

“What has been adjudicated and established in the wake of Vietnam and the Civil Rights movement is the ability of the press to basically write or broadcast almost anything about the government.There’s very few restrictions in that way. It’s not true when we’re talking about private power, especially major Fortune 500 corporations, or people worth more than, say, a billion dollars.”

In other words: look out Government, you’re about to be pummeled by a crusading, righteous billionaire! And corporate America? Ah, don’t worry. Your dirty secrets—freshly transferred from the nasty non-profit hands of the Guardian to the aggressively for-profit hands of Pierre Omidyar—are safe with us.

A Secular Humanist Jew’s Thoughts on Yom Kippur: On Atheism and Theism, and on Religion and Organized Religion October 15, 2013

Posted by rogerhollander in Religion, Right Wing.
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Roger’s note: Here is a thoughtful article on Judaism and organized religion in general.  We live in an age of superstition and no-nothingism, and this is most frightening.  Fanatic  fundamentalist anti-intellectual and arrogant theism has reached to the highest levels of power and authority in the U.S. Republican Party, and in India and much of the Islamic world Hindu and Muslim fundamentalism also has become ubiquitous in places of great political, social, cultural and economic power.  Overcoming this institutionalized irrationality with Fascistic overtones is one of the great challenges of our time.

 

By (about the author)

OpEdNews Op Eds 10/14/2013 at 16:13:26

Being some reflections on the Jewish High Holy Day and its meaning that I wrote down after attending the Kol Nidre service at the Liberal Jewish Synagogue in London this past month.  The lead sermon was given by the congregation’s retired Chief Rabbi, David Goldberg.  Two years ago I heard him give a sermon at Kol Nidre service which he began with his modification of a famous quote taken from the English historian A.J. Toynbee: “I don’t believe in God; but I miss him.”

For Secular Humanist Jews like myself Yom Kippur is not a day of atonement, as it is for theist Jews.  We may well have done wrong things in the past year, but we do not regard them as “sins.” “Sin” is a religious concept requiring the existence of an unknown, unknowable, and unprovable, yet somehow all-powerful super-natural being which at some level has control over our lives or parts of them.   For us, Yom Kippur, the most important day in the Jewish calendar, is a day of renewal and rededication. We reflect, we restore, we renew — we look ahead, not behind.

From http://www.flickr.com/photos/11278061@N05/7925325910/: Humanists Celebrate Reality, without prejudice (except when told what religious views to hold, by law)
Humanists Celebrate Reality, without prejudice (except when told what religious views to hold, by law) by Napolean_70

Before getting on to what I resolved to renew my efforts in dealing with, let me say that as a humanist, an atheist, for my whole life, I am used to be looked down upon (or worse) by theists.   Imagine my surprise, then, when I read of what the new Pope, Francis, had to say about atheists, of which I am surely one, in a lengthy response to a journalist’s questions (click here): ” “You ask me if the God of the Christians forgives those who don’t believe and who don’t seek the faith. I start by saying — and this is the fundamental thing — that God’s mercy has no limits if you go to him with a sincere and contrite heart. The issue for those who do not believe in God is to obey their conscience.   Sin, even for those who have no faith, exists when people disobey their conscience [emphasis added].”

Even in a column like this one, I have to say “Wow, that is quite a statement,” especially coming from the Pope.   (One can hardly imagine it coming from any of the lay or clerical leaders of the Republican Religious Right in the United States.)   It did make me return to consider a line of reasoning about religious persons, as contrasted with organized religion, that I have held for quite some time.   The Pope made it clear that he does not have a problem with atheists, per se.    And so, I would like to make it clear that I do not have a problem with theists, per se.   Yes, I do understand and agree with all of the arguments against the existence of an unknown, unknowable and unprovable “God” or “Gods” (think Hinduism, of which there are about 1 billion adherents).   But I do think that it is a waste of time to argue against the concept, and worse to make fun of it, that majority of the world’s population who are theists of one sort or another hold to.

The problem, for atheists/humanists and, at many times in history theists of one sort confronting theists of another sort as well, is Organized Religion, like the Catholic Church, like the Republican Religious Right (political by definition), like political Islam, like indeed political Orthodox Judaism in modern Israel.   Our argument is not, or should not be, with belief and the believers.  The struggle of humanists and believers alike who are devoted to the fundamental interests of humanity must be focused not on each other but on our common enemy: those who use religion to advance their own political and economic interests to arrogate to themselves and their patrons resources and the product of economic activity that neither benefit humanity as a whole nor have anything to do with religion, those otherwise known variously as “corporatism,” the “global economy [privately held],” and capitalism.

Further, it must be understood by all that over the centuries of human civilization, more of our brethren have been killed in religious wars, or wars waged for “religious” reasons, or in wars in which organized religions have been an ally of one or more of the warring states, than for all of the other causes put together.   In the Second World War, hardly a religious war in the sense that the crusades or Catholic/Protestant wars of 16th and 17th century Europe were, nevertheless, on the belt buckle of every German Wehrmacht soldier was the slogan (originated by the Prussian Chancellor Otto von Bismarck in the 1880s) “Gott mit Uns.” The traditional Japanese religion of ancestor worship, Shinto, was mobilized by the fascist leadership to help them mobilize the whole population behind the war effort.   The Catholic Church was closely allied with both Benito Mussolini’s (Italian) and Francisco Franco’s (Spanish) fascist states.   In the United States, it was not like that, but there were the frequent imprecations to God for support in battle and even a popular song that I remember well from my youth during that conflict: “Praise the Lord and Pass the Ammunition.”

Presently, The US Republican Party runs in major part on the issues that are central to the Fundamentalist Christians and Jews who are central to the Republican base: homophobia, religious determinism in policy governing the outcome of pregnancy, the introduction of organized religious activity into the public schools, and in general the steady erosion of the Constitutional boundaries separating church and state.   In political Islam, “Islamism” is very clear that its goal is to take full political power so that it may rule under the provisions of “Sharia Law.”   (Funnily enough, many of the provisions of Sharia Law, against which the Islamophobes of the Republican Religious Right just love to rail, are strikingly similar to the law that the latter would like to impose across the United States.   The central feature of both is that “religious law” [as they interpret it of course] should stand above any civil constitution.   Don’t believe me?   Just ask Rick Santorum, the Dominionist Mike Huckabee, Antonin Scalia, and etc.)   For many Israelis on the Right, the whole policy that has been followed by their Right-wing governments over the years, the gradual erosion and (the hoped for) eventual expulsion (voluntary or involuntary) of the Arab population in the Occupied Territories is based on the Biblical concept of the “Land of Israel.”

Through my writing I have been fighting the forces of the Republican Religious Right for some years.   The original of my current book The 15% Solution: How the Republican Religious Right took Control of the U.S., 1981-2022: A Futuristic Novel ( http://www.puntopress.com/jonas-the-15-solution-hits-main-distribution/ ) was published in 1996.   And so, what is my renewal for this, the Jewish New Year?   To rededicate myself to that struggle, but to feature the line of reasoning that I have outlined above.   Our struggle is not with religion, per se, nor with its adherents, as individuals.   Our struggle is most correctly with Organized Religion and how it is used to further the interests of Reaction by every government around the world that does use it in one way or another, which in modern times means capitalism and all of its present and future negative outcomes for all of mankind, whether theist or humanist.   That is our challenge, and for the preservation of our species and indeed many others, that is the challenge we have to meet.

 

 

http://thepoliticaljunkies.org/

 

Steven Jonas, MD, MPH, MS, is a Professor of Preventive Medicine at the School of Medicine, Stony Brook University (NY) and author/co-author/editor/co-editor of over 30 books on health policy, health and wellness, and sports and regular exercise. In (more…)

GOP Outreach On Women Going About As Expected October 7, 2013

Posted by rogerhollander in Hillary Clinton, Right Wing, Women.
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ROGER’S NOTE: HILLARY CLINTON IS A HAWKISH NEO-CON IN SHEEP’S CLOTHING, AND I WOULD NEVER SUPPORT HER PRESIDENTIAL CAMPAIGN.  NEVERTHELESS, JUST AS WITH THE RACISM FOCUSED ON NEO-CON IS SHEEP’S CLOTHING OBAMA, THE MISOGYNIST ATTACKS ON CLINTON ARE DESPICABLE, JUST ANOTHER EXAMPLE OF HOW DISGUSTING IS THE REPUBLICAN KOCH BROTHER FUNDED AND INSPIRED TEA PARTY MOVEMENT.  BUT THIS SHOULD NOT TAKE ONE IOTA AWAY FROM OUR OPPOSITION TO THE OBAMA/CLINTON MILITARIST AND IMPERIALIST FOREIGN POLICY.

 

by Abby Zimet

With a 12-point gap nationwide among women voters in 2012 elections, Republicans had vowed to “rebuild the party from the ground up” at this weekend’s California GOP convention. The grotesque anti-Hillary buttons caught by a San Francisco reporter – which were said to be both very popular and eventually, mysteriously removed – tell another, oblivious tale. Memo to GOP, especially those in thrall to the Tea Party: You can’t trash people and their rights and then expect them to vote for you. The buttons underneath these (commie=liberal, really) were almost as bad.

 

With Rise of American Fascism, Shutdown Politics ‘Predictable’ October 7, 2013

Posted by rogerhollander in Democracy, Economic Crisis, Imperialism.
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Can new progressive era rise from ashes of ‘era of obstructionism’ or is the descent of US democracy just beginning?

 

- Jon Queally, staff writer

Republican senator from Texas, Ted Cruz. (Photo: AP)

“All of this was predictable.”

In the midst of the ongoing government shutdown—with the GOP still trying their darndest to kill Obamacare and the global financial markets now truly jittery over the quite real possibility of a US default—those five words, found in Paul Krugman’s Monday New York Times column, don’t say it all, but they begin to tell a story long in the making.

If the current situation in Washington is a consternation to many observers, why so predictable to progressives and others like Krugman? He writes:

It has been obvious for years that the modern Republican Party is no longer capable of thinking seriously about policy. Whether the issue is climate change or inflation, party members believe what they want to believe, and any contrary evidence is dismissed as a hoax, the product of vast liberal conspiracies.

For a while the party was able to compartmentalize, to remain savvy and realistic about politics even as it rejected objectivity everywhere else. But this wasn’t sustainable. Sooner or later, the party’s attitude toward policy — we listen only to people who tell us what we want to hear, and attack the bearers of uncomfortable news — was bound to infect political strategy, too.

In short, when an individual—or a political party—commits to a world view fundamentally insulated from reality, it is only a matter of time before the wheels will come off the rails. Like a pathological liar, the truth finally catches up. For a gambling addict, the house will ultimately call the game.

Over the weekend, the takeaway news was that Speaker of the House Rep. John Boehner (R-OH) was either “lying” or “incompetent” when he claimed on a Sunday talk show that he didn’t have the votes to pass a “clean CR” (continuing resolution) that would end the shutdown by funding the government without GOP riders or demands. The problem, of course—as many reporters and observers documented—was that it just wasn’t factually true.

As The Hill reports:

Democrats have repeatedly called on Boehner to allow a vote on a so-called “clean” Senate bill that would reopen the government for a short period of time, but not include Republican demands to delay or defund ObamaCare.

A whip count by The Washington Post found that 20 Republican representatives supported a so-called clean continuing resolution (CR), with another four counted as “leaning yes.” If all 200 Democrats voted for the legislation, they would need just 17 Republicans to vote with them.

Boehner made the comment during an interview on ABC’s “This Week,” after host George Stephanopoulos asked him if he was “prepared to schedule a clean bill on government funding.”

When Stephanopoulos pressed Boehner on whether it was true that the votes did not exist, the Speaker said that the American people expected leaders in Washington to “sit down and have a conversation.”

So what’s at stake? According to Bloomberg on Monday, a voluntary default by the U.S. on its debt obligations would be “catastrophic” and lead to worse consequences than when the collapse of Lehman Brothers helped facilitate the financial crisis that swept the globe in 2008. The business paper reports:

Failure by the world’s largest borrower to pay its debt — unprecedented in modern history — will devastate stock markets from Brazil to Zurich, halt a $5 trillion lending mechanism for investors who rely on Treasuries, blow up borrowing costs for billions of people and companies, ravage the dollar and throw the U.S. and world economies into a recession that probably would become a depression. Among the dozens of money managers, economists, bankers, traders and former government officials interviewed for this story, few view a U.S. default as anything but a financial apocalypse.

The $12 trillion of outstanding government debt is 23 times the $517 billion Lehman owed when it filed for bankruptcy on Sept. 15, 2008. As politicians butt heads over raising the debt ceiling, executives from Berkshire Hathaway Inc.’s Warren Buffett to Goldman Sachs Group Inc.’s Lloyd C. Blankfein have warned that going over the edge would be catastrophic.

If nothing else, that’s a view of how the global capitalists see the situation. But what it also reveals is confirmation of the argument presented by many that the modern day Republican Party has become hostage to its most radical and destructive elements. Once beholden to serve the leaders of global capitalism, the new Republican Party, dominated by the branding and rhetoric of the Tea Party, has seemingly lost its ability to even know what that is.

Chris Hedges, a freelance journalist and author of the American Fascists: The Christian Right and the War on America, writes on Monday, the rise in prominence of Sen. Ted Cruz of Texas is the best example of how the ‘Christian right’ and its “anti-Enlightenment” word view has taken over the party and in its lust for power, sabotaged the country’s ability to govern itself. On the ideology of Cruz and his followers, which he terms ‘American fascism,’ Hedges writes:

They live in a binary world of black and white. They feel they are victims, surrounded by sinister groups bent on their destruction. They have anointed themselves as agents of God who alone know God’s will. They sanctify their rage. This rage lies at the center of the ideology. It leaves them sputtering inanities about Barack Obama, his corporate-sponsored health care reform bill, his alleged mandated suicide counseling or “death panels” for seniors under the bill, his supposed secret alliance with radical Muslims, and “creeping socialism.” They see the government bureaucracy as being controlled by “secular humanists” who want to destroy the family and make war against the purity of their belief system. They seek total cultural and political domination.

All ideological, theological and political debates with the radical Christian right are useless. It cares nothing for rational thought and discussion. Its adherents are using the space within the open society to destroy the open society itself. Our naive attempts to placate a movement bent on our destruction, to prove to it that we too have “values,” only strengthen its supposed legitimacy and increase our own weakness.

It is a mixture of this religious politics, combined with the financial self-interest of billionaires and ideologues—like “the Koch brothers, the political arm of the Heritage Foundation and others” described by Krugman—that fuels the current crisis. And though many step back and call the whole thing “political theater,” the final act has yet to begin.

What was “predictable,” according to Krugman, was that the GOP would ultimately end up in such a position where their aversion to facts would make them victims of reality. What is not yet clear—though predictions abound—is how the current impasse ends and what impact it will have on U.S politics leading into the 2014 election season and beyond.

With the Democratic Party also guilty in propping up a political system that fails to deliver the transformative change demanded by a world awash in war, economic inequality, and on the precipice of runaway climate change, the prospects for a new progressive era originating in Washington, DC are not only dim, but non-existent.

As Charles P. Pierce writes at Esquire on Monday morning, both parties—despite all warnings by social activists, progressives and Keynesian economists—have already agreed on austerity as a cure for the ongoing recession.

“For all the talk about how Republican extremism is finally catching up with the party,” writes Pierce, “one can argue just as well that Wall Street-friendly, deficit-hawk, DLC-onomics is finally catching up with the Democratic party.” He continues:

After all, if the shutdown ended tomorrow, the sequester would still be in place. Austerity still would be the tacitly agreed upon program for both parties, and Paul Krugman likely still would be drinking before noon. The administration’s brilliant eleventy-dimensional chess in 2010 looks more and more like a case of being too smart by half. It created a new reality in which both sides decided that what a country barely out of a devastating recession really needed was some belt-tightening and some fiscal discipline.

And Richard Eskow, from Campaign for America’s Future, writes, “The Democrats have already made too many concessions.” What’s needed, he says, is “for the people to take their government back from the extremists, before their empire collapses and takes us all down with it.”

And Eskow gets no quarrel from Hedges, who writes:

The rise of Christian fascism is aided by our complacency. The longer we fail to openly denounce and defy bankrupt liberalism, the longer we permit corporate power to plunder the nation and destroy the ecosystem, the longer we stand slack-jawed before the open gates of the city waiting meekly for the barbarians, the more we ensure their arrival.

For the moment, however, how this “impasse” ends—and what rises in its ugly wake—continues to be a guess.

_________________________________________

Some of My Best Friends are Republican August 19, 2013

Posted by rogerhollander in Democracy, Religion, Right Wing.
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Roger’s note: If you have any Republican family or friends, you may want to share this video with them.

THE TEA PARTY IS THE AMERICAN TALIBAN: REPUBLICAN NEWSROOM COMMENTATOR WILL MCAVOY

 

Obama: Speak Loudly and Carry a Toothpick January 23, 2013

Posted by rogerhollander in Barack Obama.
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President Obama, standard-bearer of the Republican agenda,*  takes on the Tea Party in inaugural address.
*war mongering (drone missiles, Afghanistan escalation, Pakistan, Libya, Sudan, and heeeeeere comes Iran)
*support of Israel Gaza massacres
*support of Latin America coups (Honduras, Paraguay) and right-wing governments (Colombia, Panama, Mexico)
*bank/Wall Street bailouts
*insurance industry health care plan
*protecting torturers (past:Bush/Cheney; present: Bagram)
*destroying public education (standardized testing)
*state secrets
*pursuing whistle blowers
*Patriot Act
*presidential kill list
*indefinite detention
*your favorite Obama cop-out here _____________________________

Homeland Security Prepares for Civil War August 28, 2012

Posted by rogerhollander in Economic Crisis, Revolution.
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Roger’s note: I have no idea how reliable is the author of this article.  If the facts are correct, then we have good reason to fear massive repression of civil unrest.  The article suggests that it is more likely to come from the right (tea party) than the left.  In either case the notion of economic disaster leading to civilian rioting being confronted by agencies armed with lethal weapons is truly frightening.

(about the author)

opednews.com

Its Clear Our Military Is No Longer The Nation’s Only Standing Army When It Comes To Killing Power
 
Over the past 2 weeks, everyone from the mainstream media to bloggers and conspiracy theorists have questioned the government’s mass purchasing of ammunition for federal agencies like the National Weather Service and even the Social Security Administration. Combined, both agencies ordered over 210,000 rounds. This ammunition is mostly made up of “hollow point” bullets, which are designed strictly for maximum damage to the human body and have been outlawed for use in warfare since 1969.
 
On the surface, these purchases alone are scary enough and raise questions as to why these unlikely agencies need any amounts of ammo, especially bullets that have been outlawed. The National Weather Service claims they have 63 officers who “enforce the nation’s ocean and fishing laws to ensure a level playing field for fishermen and to protect marine species like whales, dolphins and turtles.” If you divide 46,000 rounds by the 63 agents they employ, that’s 730 bullets per agent, or, in other words, 63 crack shots and a lot of dead fisherman.
 
The Social Security Administration (SSA) has given no specific response to questions regarding their purchase of 174,00 rounds. They said their “agents’ need them. But, keep this in mind: the SSA only deals with US Citizens in America. The SSA has never been involved with anything outside of this country for any reason. And what do they need with armed agents? All SSA offices employ private contracted security for their offices.
 
One Billion + Hollow Point Bullets
 
Digging deeper into the government’s recent procurements for ammo, you learn just how aggressively they are buying up ridiculous amounts of ammo and riot related equipment. The feds have actually ordered over 1 billion rounds of ammo in 2012 alone. They received 750,000,000 in March and are awaiting another 450,000,000 arriving soon. All in conjunction with large-scale orders for riot gear, bulletproof checkpoint outposts with red and green stoplights, human shaped paper practice targets, and other crowd control and containment equipment.
 
There is no conspiracy theory here. The federal government is expecting either a catastrophic financial collapse that could provoke nationwide food riots and all out civil unrest, another civil war, or even Armageddon. All in the very near future. Some theorize that the mass purchase of ammunition is an attempt to hoard as much as possible from the American public whom the feds believe may be in preparation for civil war right now.
 
The Warnings Are There
 
Activist, radio talk show and journalist, Madison Ruppert, recently detailed on his “End The Lie Radio Show” how our Department of Homeland Security has an apparent obsession with buying up all the ammunition on earth. He noted that even if this ammo were purchased strictly for training purposes, as the Feds claim, we simply do not have the money in the federal budget to buy hundreds of millions of rounds of high dollar ammunition for domestic agents’ target practice.
 
Another recent story by Ruppert entitled, “We Are Preparing For Massive Civil War…Says DHS Informant” outlines investigator Doug Haggman’s interview with reportedly, high-level, reliable sources inside Homeland Security, who claim the agency is preparing for a massive civil war in America. The DHS source states that the federal government foresees and prepares for a massive civil revolt. “Every time you hear about troop movements, military equipment, the militarization of the police, and the buying of the ammunition in the US, all of this is orchestrated by the DHS who are reportedly preparing for a massive uprising.”
 
Hagmann goes on to say that his sources tell him the concerns of the DHS stem from their belief in an impending collapse of the U.S. dollar as the the world’s primary reserve currency, and their fear that a significant portion of the population is already armed and will rise up over the crash of our monetary system. Hagmann’s sources confirmed the ongoing fear of a U.S. dollar collapse at the hands of the Chinese and possibly the Russians in retaliation for aggressive U.S. foreign policy initiatives against Chinese and Russian strategic allies like Iran and Syria.
 
“The one source that we have, I’ve known since 1979,” says Hagmann. “He started out as a patrol officer and currently he is now working for a federal agency under the umbrella of the Department of Homeland Security. He’s in a position to know what policies are being initiated and what policies are being planned at this point.” And, “he’s telling us right now that what you’re seeing is just the tip of the iceberg.”
“We are preparing, we, meaning the government, we are preparing for a massive civil war in this country.”
 
Then there is Trends Research Institutes’ Founder Gerald Celente’s forecast of last year where he believes and expects a collapse of the U.S. dollar and riots in America some time this year. Since Celente’s “Civil War’ prediction of last year, President Obama signed executive orders known as the National Defense Resources Preparedness, which are politically damaging actions taken by a sitting president. Of course, he also signed the National Defense Authorization Act, abolishing habeas corpus and the Bill or Rights, and permitting indefinite detention without charge or trial of American citizens at home and abroad. He further claims the power to murder American citizens without indictment, trial or conviction upon his finding that they support or substantially assist an enemy of the United States or one of its allies. Let the firing squads begin.
 
And most recently, additional requests made by the DHS for another procurement of 750 million rounds of hollow-point ammunition only fuels speculation of an upcoming tragic event expected on American soil. These major events, as shocking to the American people as they are, will be taking place during an election year.
 
Governments Strategy To Crush Any Tea Party Insurgency (Warfare)
 
How seriously does the government consider a Tea Party rebellion? Kevin Benson, a retired U.S. Army colonel, who now teaches modern warfare to soldiers at the University of Foreign Military and Cultural Studies at Fort Leavenworth, Kansas, has co-written an article with Civil War expert, Jennifer Weber, detailing how to crush a Tea Party insurgency. That report, by itself, has ignited a firestorm among those increasingly concerned about what they feel is a distinct anti-civilian tone that has infected much of the military and Homeland Security personnel since 2009.
Benson and Weber co-wrote the article for Small Wars Journal on a 2010 Army report entitled, “U.S. Army Training and Doctrine Command, The Army Operating Concept 2016 – 2028.”
 
The report describes the Army’s response to threats “at home and abroad” in the coming two decades, and, in doing so, made clear that a monumental cultural shift recently occurred in the thinking of those at the top levels of military command. This shift has some governmental watchdogs worried, particularly given that Benson is using the platform provided at Fort Leavenworth to indoctrinate soldiers in his vision of the nature of modern warfare in America.
 
Benson and Webber actually created a fictitious training scenario, including a military response, as a teaching tool for the future insurrection of tea party activists. As the scenario goes, the tea party stages a takeover of the town of Darlington, S.C.. They profess that the Declaration of Independence has been re-imposed, and the local government declared null and void. According to the vision articulated by Benson, the enemy will be average citizens whose values resonate with those articulated by the tea party.
 
The scenario admits to the public that the government fears that the Tea Party can alter or abolish an existing government and replace it with another. In the words of Benson’s report, a takeover by the Tea Party will have an effect on the general population insomuch as it “shall seem most likely to effect their safety and happiness.”
 
Also, there is a 2008 report produced by the U.S. Army War College’s Strategic Institute that warns the United States might experience massive civil unrest in the wake of a series of crises, which it termed “strategic shock.” It goes on to say, “widespread civil violence inside the United States would force the defense establishment to reprioritize itself to defend basic domestic order and human security.” The report, authored by Retired Lt. Col. Nathan Freir, adds that the military may be needed to squash “purposeful domestic resistance.”
 
Even though Freir’s warning does not directly cite the Tea Party as the cause of the mass civil unrest, the inference is there. With the publication of the reports by Frier, Benson and Weber, it is clear that DHS and the U.S. Army considers it a valid proposition to assume that a future civil war will be sparked not by extremist Islamists with dirty bombs or left wing insurrectionists, but by the tea party and the conservatives who participate in it.
 
Just three years ago the Department of Homeland Security generated the notorious Home Grown Terrorist Assessment Memorandum detailing the the vision the DHS held of the primary threats to U.S. domestic security in the near future. The memo was distributed to local law enforcement across the nation with details about the Tea Party being the object of the government’s fears. The fears included combat hardened returning veterans to a nation without jobs for them, weapons and ammunition shortages that could be blamed upon the federal government, citizens who believe there is an effort to build an international government, extremist internet chatters who perceive a loss of U.S. manufacturing and construction jobs to overseas markets and blame governmental policies for that exodus and resultant home foreclosures, libertarians, Ron Paul supporters, people who talk a lot about their constitutional rights, people with copies of the constitution or Bill or Rights, etc., are all suspected domestic terrorists according to the memo.
 
Why Hollow Point Bullets?
 
After being bombarded with questions wanting to know why the feds are procuring stockpiles of ammo, their half-hearted excuses came down to needing this ammo for training and qualification purposes. That answer only raises more questions. Like, why does anyone need to practice or qualify with expensive “hollow point’ rounds. Manufacturers make “practice’ rounds that are considerably cheaper.
 
According to an article published by war decorated Army Major General Jerry Curry (Ret), the feds explanation about the bullets fails to pass the smell test. “Hollow point bullets are so lethal that the Geneva Convention does not allow their use on the battle field in time of war.” Hollow point bullets don’t just stop or hurt people, they penetrate the body, spread out, fragment and cause maximum damage to the body’s organs. Death often follows. “Notice that all of these purchases are for the deadly hollow nose bullets. These bullets are not being purchased and stored for squirrel or coyote hunting.
 
“This is serious ammunition manufactured to be used for serious purposes.”
 
He goes on to write that” “In the war in Iraq, our military forces expended approximately 70 million rounds per year. In March DHS ordered 750 million rounds of hollow point ammunition. It then turned around and ordered an additional 750 million rounds of miscellaneous bullets including some that are capable of penetrating walls.”
 
His final claim is food for thought “This is enough ammunition to empty five rounds into the body of every living American citizen.”
 
General Curry raises 3 additional good points.
 
1. We have enough military forces to maintain law and order in the U.S. even during times of civil unrest. We have local police, backed up by each state’s National Guard, backed up by the Department of Defense.
 
2. In addition to all these forces, why does DHS need its own private army?
 
3. Why do the SSA, NOAA and other government agencies need to create their own civilian security forces armed with hollow nose bullets?
 
In Closing
 
This is not a “conspiracy theory” or guessing that our government is actively stockpiling enormous amounts of lethal ammunition, riot equipment and other related control devices designed solely for civil unrest. This purchase is a fact, and there is plenty of documentation from the feds themselves on how they are procuring these items. It is readily available on the Internet. It is also evident that within the last few years, several military strategists have produced in depth reports outlining the probability for a massive Civil War in America in the near future.
 
The DHS and other federal agencies are aggressively acting on those reports and recommendations by launching their own preparedness plans in order to both conduct a pre-emptive strike first and or combat any uprising by civilians that may occur first.
 
These ammo purchases by the feds do not include any mention of “non-lethal” tactics such as rubber bullets, water hoses, bean bags (fired from a shotgun to knock a person down) or tear gas, etc., which are used instead of deadly force to control civil unrest. It appears on the surface that they are gearing up for all out warfare on the American public. It also appears that the entity behind this plan is the Department of Homeland Security, not the military or local city, county, state or federal law enforcement.
 
The below analogy will likely anger some of the people reading it. It is only being used to point out how agencies akin to Homeland Security can get out of hand and allow self-appointed power and authority to become grossly abused, thus losing sight of their intent and objective.
 
In our own fears from 911, our government created Homeland Security, an agency that has become so powerful and relentless in believing they are protecting America that they have evolved into nothing more than what the German Waffen -“SS’ officers became over time. Out of control. The “SS’ were first formed in 1934 only as a supplementary army alongside the main German army. But, in just a few years, they were able to appoint themselves into the core of Germany’s terror apparatus and by about 1936 assumed control of the entire terror machine.
 
End Of Story
 
Jack Swint-Publisher
West Virginia News
Website: http://WVNewsOnline.com
Blog: http://WestVirginiaNews.blogspot.com
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Only Ron Paul Warns Of Emerging Fascist State February 27, 2012

Posted by rogerhollander in Civil Liberties, Foreign Policy, Iran, Iraq and Afghanistan, Right Wing, War.
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Roger’s note: Please don’t get me wrong, I am no fan or supporter of Ron Paul with his Social Darwinian Ayn Rand Libertarian philosophy that makes a fetish of the sacred concept of individual liberty (as if it were possible to separate the individual from the community).  Nevertheless, Paul’s positions on war and empire coincide with that of the left in general and the Occupy Movement in specific.  It is also easy to see why his persona, which reeks of sincerity and honest indignation, appeals to youthful idealism.  His association with the extreme right and some alleged policy statements that sound like white supremacism, are disturbing.  But his position of militarism and fascism, as outlined in the article below, begs the question of why he is a part of the Republican Party in the first place; and why, if he sees the connection between authoritarian government and mega corporations, his domestic policy coincides with the interests of those same corporations.

(about the author), Feb. 26, 2012, www.opednews.com

Republican Ron Paul is the only presidential candidate of either party to tell the truth that America is “slipping into a fascist system.”

That is unquestionably the critical issue of the hour for the United States of America and one that Paul’s Republican fellow candidates and their Democratic opponent President Obama choose to ignore.

Hand in hand with this existential crisis is that a nation that goes fascist at home invariably becomes a tyrant abroad. Thus, the Congressman from Galveston is right on the mark when he calls for the predatory U.S. to pull its troops out of the Middle East and Africa and close down its foreign bases. The U.S., indisputably, with its 1,000 military bases at home and a thousand more abroad, is now   the   most awesome military power ever.

“We’ve slipped away from a true Republic,” Paul told a cheering crowd of followers at a Feb. 18th rally in Kansas City, Mo.   “Now we’re slipping into a fascist system where it’s a combination of government and big business and authoritarian rule and the suppression of the individual rights of each and every American citizen.”

According to the   Associated Press   reporter who covered his speech, “Paul repeatedly denounced President Barack Obama’s recent enactment of a law requiring military custody of anyone suspected to be associated with al-Qaida and involved in planning an attack on the U.S.” (Note: Paul is a consistent defender of individual rights. He also opposed that previous horrific piece of totalitarian legislation mislabeled as the Patriot Act.)

Ralph Munyan, a Republican committeeman who attended the Paul rally, told   AP   he agreed with Paul’s warnings of a “fascist system” and Paul’s pledges to end the War on Drugs as well as U.S. involvement in wars overseas. By contrast, candidates Mitt Romney, Rick Santorum, and Newt Gingrich are all hawks spoiling for a fight with Iran and who leave peace-minded Republican voters no one to turn to save Paul.

An article on Paul published in the Feb. 27th issue of   “The New Yorker”   quotes him as saying, “We thought Obama might help us and get us out of some of these messes. But now we’re in more countries than ever—we can’t even keep track of how many places our troops are!”

In the evaluation of   “New Yorker”   reporter Kelefa Sanneh, “So far, the Paul campaign is neither a groundswell nor a failure. He is slowly collecting delegates…” which could impact the final selection of the nominee even if they do not have the strength to nominate Paul.

Overall, Paul’s message appears to be “doing better, state by state, than he did in 2008,” Sanneh writes, but “he has conspicuously failed to establish himself as this year’s Tea Party candidate.”

“People don’t think of Paul as a top-tier Republican candidate partly because they think of him as a libertarian: anti-tax and anti-bailout, but also antiwar, anti-empire, and, sometimes, anti-Republican,” Sanneh continues.

To date, Paul’s shining contribution to the 2012 campaign is educational—even if the major networks and cable powerhouse Fox News downplay his candidacy in their primary night election coverage. Some of what he says gets through to the public, particularly youthful voters. On the grave issues of totalitarianism at home and tyranny abroad, Paul is the last truth-teller. As such, Paul is a dove fighting for survival among a flock of hawks, and his chances are not bright.

(Sherwood Ross heads a public relations firm for political candidates who favor peace and prosperity.)

Sherwood Ross worked as a reporter for the Chicago Daily News and contributed a regular “Workplace” column for Reuters. He has contributed to national magazines and hosted a talk show on WOL, Washington, D.C. In the Sixties he was active as public (more…)

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Tennessee Tea Party to Children: What Slaves? January 24, 2012

Posted by rogerhollander in Education, History, Racism, Right Wing.
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by Abby Zimet, www.commondreams.org, 24 January 2012

 

Showing a marked aversity for anything remotely resembling the truth, Tennessee Tea Party leaders have issued “demands” to state legislators that schools stop teaching - through “neglect and outright ill-will” – all that bad stuff about our fine Founding Fathers like the “made-up criticism” that maybe they owned slaves or killed Indians or did other icky things, and that, “No portrayal of minority experience in the history which actually occurred shall obscure the experience or contributions of the Founding Fathers, or the majority of citizens.” This, after Texas approved 100 revisions to textbooks for its almost five million kids that would rename slave trade “Atlantic triangular trade,” explore the “unintended consequences” of affirmative action,” emphasize the role of the Christian Chuch in the nation’s founding, call for studying iconic conservatives like Phyllis Schlafly and The Moral Majority, and otherwise twist “history” to their liking.

“We seek to compel the teaching (of) the truth regarding the history of our nation and the nature of its government.”

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Posted by ctrl-z
Jan 24 2012 – 1:52pm

They weren’t slaves, it’s just that, back then, the penalty for illegal immigration was a lifetime at hard labor. Obviously, to be like the founding fathers, we need to reimpose the original sentence.

Posted by vaialdiavolo
Jan 24 2012 – 2:10pm

So this is what the descendants of the illegal “immigrants”- genocidal slavers look like and it looks like they may have found their messiah in the overtly racist  Professor of Revisionist History running for President.  This has echoes of what was done to the children of the First Nations through the same racist “educational” system of “killing the Indian”. A storm is coming…

Freedom Tea Party Style August 16, 2011

Posted by rogerhollander in Civil Liberties.
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What else do these freedom lovers want the government to prohibit?

Thereuptic abortion

Mariajuana

Kurt Vonnegut Jr. and other authors

Atheism

Peace

Feel free to add to the list.

 

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