Transatlantic Union: Scandals, Scoundrels and Global Trade Partners?

By Shawn Helton
21st Century Wire

For the past two weeks we’ve seen the Obama administration embroiled in controversy, as three separate scandals continue to grow and attach themselves to the White House.

While this is major news, and does have the power to topple this U.S. President, there are other far-reaching actions unfolding under his watch…

In a bizarre move, President Obama, held two joint press conferences last week, one with U.K. Prime Minister David Cameron and another with Turkish Prime Minister Recep Tayyip Erdogan. Perhaps the dual Presidential podiums were a subliminal touch to what seemed to blur the line between world leaders, in a sense, becoming rule by global council. This strange observation may well be significant to understanding the kind of dark partnerships that are developing world-wide.

Rightly, most of the media will focus on the obvious take down of an empire, as they try to uncover the truth about Benghazi, IRS, and the DOJ. However, on the global chess board of finance and war, more stark revelations have come to light involving the U.S. President. During the press conference with Prime Minister Cameron, President Obama, made vague sweeping statements about a Transatlantic Partnership with the E.U. A partnership that many fear will lead to a Transatlantic Union which will impose more globalized standards and regulations, potentially derailing individual free trade.

This was made clear by The New American earlier this year:

“The “Transatlantic Partnership,” of course, is just one of the major sovereignty-threatening international schemes being pursued by the Obama administration simultaneously — closer North American Integration and the so-called “Trans-Pacific Partnership” are two of the most prominent efforts. The latest plot, though, has far-reaching, global implications that critics argue represent a serious threat to America and freedom. If the U.S.-EU deal ends up becoming reality, the regulatory regime governing the new bloc, which accounts for about half of global GDP, would become the de-facto standard-setting entity for the entire planet.”

Obama-CameronObama had this to say during the Cameron press conference:

“With respect to the relationship between the U.K. and the EU, we have a special relationship with the United Kingdom. And we believe that our capacity to partner with a United Kingdom that is active, robust, outward-looking and engaged with the world is hugely important to our own interests as well as the world. And I think the U.K.’s participation in the EU is an expression of its influence and its role in the world, as well as obviously a very important economic partnership”.

Obama echoed the same rhetoric at the Erdogan press conference adding: “Today, we focused on three areas that I want to highlight. First, we agreed to keep expanding trade and investment. Over the past four years, our trade has surged and U.S. exports to Turkey have more than doubled. As the United States pursues a new trade and investment partnership with the EU, I want to make sure that we also keep deepening our economic ties with Turkey. So we’re creating a new high-level committee that will focus on increasing trade and investment between our two countries and will help fuel Turkish innovation. And the progress that Turkey’s economy has made over the last several years I think has been remarkable and the Prime Minister deserves much credit for some of the reforms that are already taking place.”

It seems that more and more we’re faced with a manufactured reality, one in which international institutions will have dictatorial power over trade and the economy world-wide. Breaking away from sovereign entities controlling their own destiny.

Is the transatlantic partnership a sleeping giant for the global economy? What other partnerships are being harbored in regards to U.S., Britain and Turkey? How does this tie into the situation in Syria?



Writer Patrick Henningsen delves further into this in a recent op-ed for Russia Today news: “On Wednesday Kentucky Sen. Rand Paul(R) weighed in on the Benghazi debacle, in a direct challenge to the President and Hillary Clinton, inferring that the Sept. 11, 2012 attack unfolded as a result of a secret arms trade, and rubbishing the previous government line put forward by Susan Rice and the US Intelligence community that the attack was a result of a YouTube film, “The Innocence of Muslims”. During a recent CNN interview Paul explains:

“I’ve actually always suspected that, although I have no evidence, that maybe we were facilitating arms leaving Libya going through Turkey into Syria,” he said. “Were they trying to obscure that there was an arms operation going on at the CIA annex?”

One can only conclude that those in the world who are making economic reforms aligned to a socialist “pay your fair share” tax scheme, can also control the narrative on world events. Creating a new kind of “strategy of tension” by forcing countries to be complicit in illegal activities, via their trade partnerships. Is the new growing economic partnership, a partnership in conflict and consolidation?




-facebooktwittergoogle_plusredditpinterest

Budweiser, Barbie, Monopoly – no longer American Made


They are known as true American icons. But as the Barbie doll, the game of Monopoly, Budweiser beer and Levi’s jeans fall victim to outsourcing – are they truly American any more, and what does this mean for the U.S.?



facebooktwittergoogle_plusredditpinterest

THINK ABOUT IT: Low Interest Rates Impoverish Savers

James Hall
Daily Business Report

The most ardent optimist has to confront the consequences of low interest rates. The macro analysis of ivory tower academics seldom reflects the struggle of ordinary consumers or retirees. One such pinhead is Ben Bernanke.

Back on October 1, 2012 at the 
Economic Club of Indiana, the Federal Reserve Chairman employs sophistry of a major order. Such confused and twisted logic defies common sense and real world finance. Robert Romano writes in the article, More monetary alchemy from Bernanke: Low interest rates help savers.

“Many savers are also homeowners,” said Bernanke, adding, “indeed, a family’s home may be its most important financial asset. Many savers are working, or would like to be. Some savers own businesses, and — through pension funds and 401(k) accounts — they often own stocks and other assets.”

Bernanke explained, “Only a strong economy can create higher asset values and sustainably good returns for savers… [and] [t]he way for the Fed to support a return to a strong economy is by maintaining monetary accommodation, which requires low interest rates for a time.”

He said home values would collapse without Fed support, unemployment would rise, and asset values would plummet and “[s]uch outcomes would ultimately not be good for savers or anyone else.”

So, admittedly, the Fed’s easy money policies do not in actuality directly help savers. But they will increase home values, asset prices, and create jobs for savers, Bernanke claimed. Okay, but is that even true?”

Such deceptive dishonesty that the Fed fosters beneficial monetary measures, which encourage job growth and a vigorous housing market, defies evidence. The saver watches the evaporation of their money, while prices jump at rates far in excess of the official CPI. This is a fact. This construct is the legacy of the intentional 2007 Wall Street meltdown.

The inability of distinguishing between illiquid assets and the need to pay for cost of living expenses must be a trait that only financially – cash flow secure – magicians master. The perception that the masses benefit from central banking driving down and suppressing interest rates to negative levels is patently absurd. Negative Interest Rates and the Impoverishing of America by Michael R. Winther sums up the self-evident.

“Don’t forget that consumers pay income tax on interest earned regardless of whether real interest rates are positive or negative. The result is that many Americans are paying income tax on a negative real interest rate! This discourages savings and investment, but even worse, it steals from our citizens.

Negative real interest rates hurt all savers, but these rates are especially damaging to the elderly and those on fixed incomes. It is no longer possible for senior citizens to live on the interest of their savings and investments. In fact, our negative interest rates result in a situation in which our seniors must rely on the depletion of their principle for all of their living expenses.”

The net effects of an inflationary depression require that privately saved capital must be used to pay for the continued increases in basic costs. It is not just the retired person that is shafted from zeroing out the money market. Anyone who attempts to devise a budget that sets aside a portion of cash flow understands that there is no return on banking funds.

How long will people accept this thief? The options to parking cash in hand with a FDIC insured institution seems worth an examination. However, few alternatives for working class savers exist. Surely, this occurrence is intentional because the real objective of the “New Normal” is to bankrupt Middle America. What other conclusion makes sense?

Designed lowering of our standard of living is visible at every turn. The money-centered banks recapitalized their balance sheets at the expense of the passbook accounts customers.

The recent implementation of approving an extra fee to credit card purchases is outrageous. The NY Daily News reports the example of allowing “MasterCard and Visa credit card users might see a surcharge of up to 4 percent on their receipts. Merchants are allowed to add an extra fee to credit card purchases starting Jan. 27.

The besieged consumer gets another whammy from a banking system that thrives on charging usurious fees, while paying you near zero on your saving accounts. With the execution of the Bernanke rescue strategy, the prospects of personal or consumer loans are virtually non-existent. In Helicopter Ben speak; “maintaining monetary accommodation” just does not filter down to the common- man.

While the concept of interest often confuses some Christians, Gary North offers a scriptural analysis in Usury, Interest, and Loans: A Brief Summary of Biblical Teaching, which asks:

“If charging interest were not legitimate, why would Jesus have used the example of money-lending as a legitimate way to increase capital? Why would He have attributed to God such words of condemnation for not having lent at interest?”

The tangible injustice is that the saver is especially screwed by the moneychanger system.

When you strip away the banking veil of trickery, what remains is a stash of greed, built on a hoard of distrust and deception. Few financial policies have been more destructive for the depositor than low interest rates. Siphoning off purchasing power is a perfect method to impart a fiscal squeeze, hard to rebound for any depositor. Everyday your cash lingers in money interest limbo is another diminution in your net wealth.

How can a society encourage saving under these circumstances? Apparently, the plan for depleting the economic assets of workers or investors is well underway. The notion that investing is feasible in this environment borders on delusional.

The submissive banking customer needs to take a hard look on continuing their depositing relationship with the commercial saving establishment. The endless gimmicks and get rich schemes that proliferate might seem attractive to desperate people. Yet, when you operate on parallel tracts, separated by a wide gulf of moneymaking returns, the definitive result is that treasure ends up in the accounts of the banksters and favored insiders.




facebooktwittergoogle_plusredditpinterest

War Inc – Inside the Pentagon’s Psychological Operation to Suck the Masses into Their War Machine

By Alexander Higgins August 15, 2011 From games to movies, the Pentagon spends billions to entice the American youth into giving up their lives in the name of military service. As the U.S. economy remains on a consistent downward spiral, one thing the U.S. Government is never shy to invest endless cash in is the Pentagon. While the masses suffer pension cutbacks, 46 million Americans live off food stamps  and Americans across the nation are relegated to living in “tent city” homeless camps the government pumps trillions of dollars into illegal perpetual wars. Perhaps even more inexcusable is the the pumping millions of dollars into luring in the young population of America into enrolling into the military, all to support the political corruption of globalist’s international banking cartel. RT’s Anastasia Churkina looks at some of those mesmerizing techniques, and what kind of effect they have had on those fit to serve Here’s another example of how the war machine’s propaganda is being used to target our children…                       Mike Huckabee’s 9/11 Cartoon Movie Curious how the worst terrorist attack in U.S. history will be taught to future generations? Here’s a clue via presidential candidate Huckabee, who’s hawking an educational 9/11 cartoon at $9.95 a pop. No mention of the two wars we entered into in the aftermath or even Osama bin Laden’s stated reason for the attacks (the presence of U.S. troops in Saudi Arabia). Refinery29 writes:
“There’s now a 9/11 cartoon movie courtesy of Mike Huckabee, co-founder of Learn Our History, a for-profit company whose mission is to get kids excited and educated about history. The first initiative, an animated DVD series, has flicks on subjects like the American Revolution, and, perhaps more tellingly, “The Reagan Revolution.” The September 11th cartoon really explains, according to the literature, “How the ongoing War on Terror protects Americans at home and American ideals abroad.”
facebooktwittergoogle_plusredditpinterest

YOUNG AMERICANS: FORGET YOUR STUDENT LOANS AND MOVE TO GONZO TOWN

By Stone Pinkerton Gonzo Town June 14, 2011 Getting ahead? Going to college? Whether they know it or not, millions of young Americans are joining the ranks of the over-qualified and under paid and unemployed. But heck, you can still give it the “old college try” anyway, but be informed of the pro’s and cons of your decision. According to the National Bureau of Statistics, there is only one job for every five college graduate applicants in America today. And with most jobs in the US being off-shored to the Far East and Latin America, it’s a safe bet that stat is not changing anytime soon, at least for the next 10 years, unless of course you are going for a position under the Golden Arches. In the last 12 years, college tuition in the US has risen a staggering 900%, while wages have jumped an impressive… well, err, an average 10%. For the bright, young, and gifted, this equation should really be studied very carefully. Regardless of how bleak the outlook is, America has always been the land of positive thinking and no wonder, as there is no shortage in the queue of 17 year olds dying to (literally) sign their life away to JP Morgan, Citi Bank and Wells Fargo in exchange for in many cases, around $80,000 in student loans.   STUDENT LOAN SUB-PRIME BUBBLE: Cheap loans can really stack up, but the benefits don’t. Before we rush to judgement, let’s be fair and breakdown what the kids are getting for their 80K. First and foremost, they get that golden fleece, the sheep skin also known as The Degree. In addition, millions of young Americans will be given a four year window in which to master the fine art of drinking beer and how to both hold and suck cannabis smoke from a perspex cylinder. If they have spent their 80K wisely, they will also be gifted cheap tickets to Division I football and basketball games and their fantastic after parties. As a keen sportsman myself, perhaps to best value for the money was the free campus gym membership and intramural sports programs which kept me fit enough to withstand non-stop weekends of partying. On top of all this fun stuff, it’s also a bottomless trough of free time to play computer games in your apartment, eat pizza, screw around with your guitar, and of course, ample opportunities for scouting out members of the opposite sex. Apparently, it all looks good on your CV. So in summary: lots of beers, drugs, sports, parties, games, sex, and 80K in the hole, with little chance of landing a job after four years. In fact, you will most likely be competing for lower level jobs against seemingly uncool debt-free people who never graduated from university. You might consider that you could achieve all that, and more, by simply going to Thailand for two years… at a cost of $5k. For those fortunate sons and daughters, the Degree may hold some potential value, but for most its value is purely vestigial. In days gone by, this parchment represented the pinnacle in academic achievement and was your passport to career liberation.  In a Darwinian race to land that 1 out of 5 jobs, you will need more than “a well-rounded CV”. This remains the case- only for 20% of the graduate herd, the lucky ones, and the ones with the best connections. The other 80% will unfortunately be disappointed, and will opt for a less glamorous career path like waiting tables, making cocktails or capucinos, lifeguarding, ‘delivering’ things, ‘guarding’ things, lap dancing and/or other forms of prostitution.

GRADUATE OPPORTUNITIES: Lots of cool jobs are waiting for US degree holders.

Even if you are an A or B student, it’s likely that you chose a degree that your high school career advisor told you would be “useful”, or your friends promised would be “easier” in the end analysis. If you fall into this category you would have chosen to pursue a degree in the following: communications, media communications, media studies, public relations, human development, psychology, sports psychology, marketing, advertizing, ”management”, business management, human resource management, occupational therapy, entrepreneurial studies, sports management, sociology, climate change, international relations, journalism, “art”, philosophy, or even (God help you) the once celebrated holy grail of qualifications known as the MBA. All these degrees mentioned, for the most part, are either completely useless, or they are subjects one could learn in a year to 18 months as an intern in the working world. We could also say safely that none of them are worth $80,000 in student loans, credit cards and other institutional debt that will follow you long into life as your college experience becomes a fleeting, distant memory as you reach 50 years old- wrinkled, sans hair, overweight and kids to feed and cloth. They probably won’t tell you that at your College Orientation Day. That’s the reality of it though. What’s the alternative? If you live in a socially advanced and utopia society like Gonzo Town, you would be provided with a number of viable and more economically sound options. Firstly, instead of over-hyping the alleged status of the over-priced university education con, we would advise our little Gonzo Sprites to get a job and go to Community College for two years. By doing this you have the following advantages over your mostly deluded elite counterparts at a four year university. You will have no debt, you can earn money, perhaps live at home and save money, get more or less the same curriculum the university college offers- at a fraction of the cost… and you will save your liver from getting hammered by a barrage of cheap beer every weekend. The draw backs are simply less parties, and you have to put up with your parents for a while longer. But, you can still gate crash spring break and with more money to throw around chasing girls or guys. Quids in, as they say. Second option: Learn a trade and become a ‘skilled worker’. Here is a truly revolutionary concept, so radical in fact, the entire US and European modern economies were built upon it. Question: who earns more than a lawyer, a resident physician, or most company directors? Answer: a plumber. Do an apprenticeship, as a plumber, electrician, roofing engineer, X-Ray technician, or a building surveyor and you could probably save up enough money by the time you are 35 to fund a dotcom start-up, netting you another few million. Get it? I wish I had (I got my degree in art and philosophy and remain poor, but happy, to this day). Third option: enlist in the armed forces. On paper the GI Bill looks like a brilliant option- all your bills paid for by US tax payers, no heavy student loans and you get a dose of that legendary “military discipline” we all hear about. Air Force, Navy and a few smart grunts and jarheads excluded, what they don’t tell you before you sign on the dotted line at your local strip-mall recruitment office is that you are now essentially running corporate security for the likes of Beaty Balfour, KBR, Haliburton, Unocal and Exxon. You may also risk having certain areas of your brain de-actived, and possibly removed. These include your moral compass, capacity for creative and original thought, flickering trance-like states induced by the American flag, national anthem, and a loss of your ability to distinguish Osama bin Laden from Ali Baba in Disney’s Aladdin. True hazards of the job. Fourth option: buy guns and start a survivalist colony in Oregon. In the end, one can only feel sorry for all those bright young American students who have been sold the perpetual lie that a college education is somehow worth its weight in gold. If you are still a student, you should really be asking your elders and teachers why the last four US Administrations sold out the economy- aka your future jobs, off-shore to China and the like. And then go ask your Professor or Career Guidance Councilor if they themselves would pay $80,000, or $120,000 for a college degree with no job prospects at the end of the line. Send their reply here to Gonzo Town. Question: Are students, like home buyers pre-2008, being lured into a huge Sub-Prime trap of easy loans and inflated asset (the asset here being a university degree) values? And still, the richest dudes and babes(mind you, mostly divorced) I’ve known… never did graduate from university. There it is kids. Go to the Debt-Slave Land of no jobs where you will be unwittingly lining the pockets of shameless banksters (and serving them drinks at the same time), or come study and work in Gonzo Town. Any questions? -facebooktwittergoogle_plusredditpinterest

Freakonomics and the United States of McDonalds

By Patrick Henningsen 21st Century June 4, 2011 This is one of those Freakonomic statistics that, if you were in government, you wouldn’t ever want it to be released to the public, especially during a protracted recession like we are currently witnessing in the US. No one would like to admit that the Golden Arches are holding up the American economy. In a recent report from Market Watch we have learned that: McDonald’s ran a big hiring day on April 19 — after the Labor Department’s April survey for the payrolls report was conducted — in which 62,000 jobs were added. That’s not a net number, of course, and seasonal adjustment will reduce the Hamburglar impact on payrolls. (In simpler terms — restaurants always staff up for the summer; the Labor Department makes allowance for this effect.) Morgan Stanley estimates McDonald’s hiring will boost the overall number by 25,000 to 30,000. The Labor Department won’t detail an exact McDonald’s figure — they won’t identify any company they survey — but there will be data in the report to give a rough estimate. There’s a case to be made for the benefit of fast-food restaurant employment, but it’s obviously not the foundation for sustained economic growth.”

SHADOW STATS: Real unemployment in the US is hovering between 15% and 20%.

Based on data available, last month the US economy added only 54,000 jobs, pushing the ‘official’ unemployment rate to 9.1 percent. There are various ways one can look at official unemployment stats, but one thing is certain that in a political world, no administration would want to advertize the true number of unemployed Americans. The definition of what Washington considers to be “unemployed” is a running point of contention. A more realistic and sober account of US unemployment can be seen at archives like Shadow Stats, but it is likely that real unemployment in 2011 stands between 15% and 20%. So out of those 54,000 new jobs created in the US, burger mogul McDonalds chipped in about 25,000-30,000. According these numbers, roughly half of last month’s US job growth came via the golden arches fast-food chain. And the picture looks even worse if you consider that the majority of these “new jobs” created by McDonalds were filled by students.

OBAMA VALUE MEAL: Order anything you like... the guy behind you has to pay for it.

Regardless of how compelling or definitive the case may be for raising the economic alarm, President Obama will nonetheless take to the podium at his White House press room just as CEO Ken Lay would take to the podium at his quarterly shareholder meeting for Enron. Both will tell you that everything is going great, better than ever in fact, and implore you to keep investing in their insolvent institutions… all this while they are looting the remaining financial reserves and accruing more massive debts. Obama and Lay may be performing their duty as CEO’s but you can be sure that by engaging in data manipulation and creative accounting, neither are delivering any real benefit to their constituents. It certainly looks like Ronald McDonald has saved Obama’s bacon and cheese once again. But relying on a fast food chain to prop up your economic stats in nothing but Freakonomics, and it is hardly the characteristic of a healthy economy. -facebooktwittergoogle_plusredditpinterest

YOUTH UPRISING 2011: A PLANETARY 1968

By Andrew McKillop 21st Century Wire February 24, 2011 Today’s surging youth-led revolution in the Arab world has common points with the 1968 student’s revolt that rocked developed countries including the USA, France and several other European countries, with lasting sequels – of student and youth unrest – in Latin America, the then-USSR, Japan, developed countries in East and SE Asia, and even Africa during the 1960s and 1970s. THEN AND NOW… But the shared themes and common goals tend to stop there: today’s youth revolt has a planetary dimension, already moving out from the Arab world, and changing as it goes. The uprising, today, may be mostly of young persons but the goals and themes of this much more massive, probably world scale revolt are not only political, but also economic. In turn this likely makes them even more “impossible” than the euphoric hippy-oriented peace and love, anti-war, drug influenced alternate society dreams of the 1968 revolt in the rich world, that carefully ignored such boring old-style issues such as the economy. A key slogan of the French 1968 student revolt summed this up:  ”… be reasonable – demand the impossible”. By an interesting time warp, Mouammar Gaddafi’s rise to power was under way in 1968 and was completed in 1969. This part-educated self-declared tribal ruler, himself drug-influenced, at first claimed to be reproducing the power grab of his supposed mentor, Nasser’s mid-rank army revolt in Egypt, and both of these models served elsewhere in Africa- for example in the bloody coup that gave sergeant Mobutu Sese Soko decades of corrupt power in the Congo. This he promptly renamed Zaire, like Gaddafi renamed Libya as the Arab Jamahiriya, but for any average citizen of these 3 countries little or nothing changed for the better and almost everything changed for the worse. The antiquated other-worldliness of these flashback regimes takes us back to the postwar world of two competing superpowers in an abundant oil and other fossil-fuelled era of constant economic growth. The difference with today’s real world is massive and striking. With the fall of the dictator and mass killer Gaddafi, following hard on the heels of Tunisia’s and Egypt’s creaking leaderships being overthrown, a page of history is being rapidly turned, after decades of being frozen into deathlike inertia. But today’s world is vastly different from that of 1968, and the differences do not only include mass cellphone and Internet-based communications. Through 1968-2008 world population almost exactly doubled, adding 3 400 million people. If by some miracle of 1950s and 1960s style economic growth– as in China and India today, the world’s 3.4 billion population increment could consume oil at today’s OECD average of about 12 barrels per person each year, world oil demand would be about 90 million barrels a day more than present. In other words demand would be more than double today’s demand, needing roughly 50 or 60 “New Libyas” to make up the difference.

SPECIAL RELATIONSHIP: Libya was worth approximately 1.4 million barrels a day.

This immediately sets one parameter for the post-revolutionary world of the next 10 years or so, and generates one basic need:  learning what is possible to change, and eschewing economic growth dreams of the 1950s and 1960s variety, even if China and India are soldiering along that path. For delirious and malevolent dreamers like Gaddafi, and like the 1968 crop of student and alternate society leaders of the rich world, all and every economic detail was as uninteresting as it was unimportant. In both cases there was however sufficient fat to trim, or existing wealth slopping around the system to permit these almost 18th century mindsets, more influenced by J-J Rousseau than by Nietzsche or Sartre– or effectively and in reality by Hitler and Mussolini in the case of Gaddafi. Both the type and kind of Flash Mob cellphone and Internet-based revolutions that are possible, today, will be heavily influenced by existing wealth, and the lack of it in affected countries- and as noted the current wave of revolutionary change is potentially global, exactly like the economy. GMO EPOCH AND THE NEW FOOD CRISIS Another interesting flashback to the late 1960s and early 1970s is that period was marked by serious and recurring famine outbreaks which were solved by the one-time, once-only science and technology quick fix called the Green Revolution. Today’s GM crop hybrid “revolution” is far behind in its scope and potential for raising world food output, despite loud claims to the contrary, and for a battery of simple and basic reasons. These start with the fact, using FAO and other data, the world had an average of nearly 1 hectare of arable land per person in 1968, but today has less than 0.25 hectares per person.

THE GREEN REVOLUTION: Monsanto and GMO giants work to create global food markets for their products.

Food shortages- even famine, therefore has a short fuze today.  As the initially joyful Flash Mob youth rebellion in some countries (Tunisia is in fact the only one) are followed by increasingly bloody and lengthening struggles we can easily fear these will degenerate into, and generate, long civil wars. Prolonged breakdown of civil society is a sure and certain threat. During civil wars, all through history, famine is the common fellow rider able to further intensify the loss of life and trigger further, more bloody struggles and massive flows of refugees. It is likely- but not certain, that this parameter is understood by leaders of the developed world, somewhat rocked and shocked by the rapidity and intensity of events in the Arab world since this new start of 2011. The non-ideological dimension is also troubling – so troubling that conspiracy theories are flocking to fill the void: obviously Iran is behind the Bahraini uprising, to inflict collateral damage on Saudi Arabia and deprive the west (and China, India and more than 100 other importer countries) of Saudi oil. Egypt’s uprising, when it is not the fruit of CIA and US Joint Chiefs of Staff plotting, is surely the result of Hamas infiltrating Egyptian youths’ minds using Facebook. Tunisia’s revolution was almost certainly remote-controlled by neighboring ex-Algerian islamic terrorists, when it was not the product of French socialist intellectuals and trade unionists. And so Western conventional wisdom goes. Gaddafi’s very welcome downfall poses problems for cobbling rosy conspiracy theories, but with time these will flourish. We might suggest his downfall could or might be linked to Wikileaks, like any other unexplained geopolitical event, inch’allah. But in all cases of revolt in the Arab world no conspiracy theory can claim the objective is to deprive the world of food supply. Taking simply Egypt, Algeria, Saudi Arabia and Morocco, these 4 countries import more than 45 percent of world total wheat export supply. As traders in their exuberant excesses of panic and euphoria reasoned, in their own way through February 21-23, any prolonged civil strife in the Arab food importer countries could crater demand, and therefore a rigorous sell-off was needed. To be sure, the long-only bets will be back in a few days. Much more important and more grave, the world is in a long-term process of depriving itself with food. Rebellion, revolt and revolution inside countries totally dependent on food imports is a dangerous signal not only for their citizens but for the world. The list of urgent measures in these countries – and in the huge number of countries outside the Arab world but like them heavily dependent on food imports – starts with the development of farming and food production. To date, this basic need is almost inaudible, along with other economic realities. THE FOOD AND JOB CRISIS One sure cause or intensifier and accelerator of today’s Arab revolt is the twin – in fact interrelated – crises of not enough food and not enough jobs. To be sure, citizens listening to the high-flown delirium of a megalomaniac like Gaddafi, or a despot like Mubarak or Ahmedinejad of Iran will be less than thrilled by the ranting rhetoric, when they do not have enough to eat and their job outlook is close to zero. We can suggest that rising strains, and coming fractures in the world food production and supply system will initially be good for democracy but the best-before date on the packaging will be short. The massive rate of urban growth in the Arab world, both due to and causing rural and agricultural under-development, low productivity and poor paid jobs outside cities, is only an extreme version of the same general process in all developing and emerging countries. Inside the fast-growing cities of the entire world outside the OECD countries, which count for 15 percent of world population, the growing capital intensity of low paid manufacturing jobs, to play a humble export platform role in the global economy, also chokes off job growth. Solving both these crises is the challenge for the world that arises from the ashes of the fossil regimes of the Arab world, in Africa and elsewhere, set in a moment of time that disappeared decades ago. Returning again to their time, in the 1960s and 1970s, we can take a swift look at Mao’s failed but deadly rural development and regeneration revolution, and the extreme war crimes of the Khmer Rouge forced return to village living in Cambodia. Both these acts of criminal folly were failures. Their total body count was perhaps as high as 40 million – the same as the total death toll from World War 2. What is important and usually missed out in analyzing these sombre events is that both were either directly, or in major part driven by an attempt to solve chronic or acute food shortage – and create jobs. We are currently offered a bizarre, even eccentric mix-and-match of supposed Green Growth, and intensified consumer society growth economy, by institutions and agencies such as World Bank, IMF, the UN development and economic agencies and some major private corporations. We might ironically think that the dreamers producing these concepts for the economic way ahead are working on a basis that if one fails the other could work, if God wills. The gravest problem is that neither can or will work due to these models being totally antinomic or exclusive. Case in point: at this moment in time, when the post-uprising civil societies of countries experiencing the Flash Mob youth revolt need support, advice, help and direction, the policy void in the OECD developed countries is a grave threat to recovery and sustained change in the world.

LES FLASH MOBS: Tunisian youth takes to the streets with calls for reform.

SOME CONCLUSIONS The rate of change since the start of January 2011 is high and may be growing, not weakening. The Arab revolt now means what it says: anti-regime movements now span almost the whole Arab world, from Morocco to Yemen, and can likely soon spill over and spread to African countries, Iran, Armenia, the Central Asian republics, and perhaps China. All the autocratic and unelected governments unable or unwilling to solve the basic issues of food and jobs will now suffer rising popular opposition and the risk of overthrow by mass uprising. By contagion, this movement could spread to the elected governments in many countries which are unwilling or unable to solve exactly the same challenges and can lose what remains of their own popular credibility and support. Unlike the student revolts of 40 years ago, and totally unlike the rock-solid economic growth of the time, during les Trente Glorieuse, today’s weakened and fragile global economy is exposed to a host of challenges always bringing the economic issues closer to the surface. These as we said, start with the basic issues of failure to feed large chunks of humanity, or employ the youth of nearly all countries, whether rich or poor. Given the resource pinch, geopolitical climate change concerns, rising threats of major ecosystem collapse and heightened awareness of these economic constraints the way forward is both complex and difficult. This however does not mean we can avoid grasping the nettle: on the geopolitical front, endlessly avoiding the basic humanitarian need to eliminate toy-sized Hitlers (many of whom serve at the pleasure of Western powers) like Gaddafi- is returning home to roost. The coming storm of refugee, economic, security and energy problems for the whole Europe-North Africa region, and beyond, is a clear proof of this. Exactly the same applies to meeting the nested challenges of feeding humanity and creating sustained employment within resource and ecological limits, that is within a set of sometimes clear – and often growing – constraints and limits. Time is short, and the heavy weight of avoided and ignored problems over several decades, the ultimate in laisser faire, shows that finally action is the only choice. COPYRIGHT ANDREW MCKILLOP 2011 – Andrew McKillop is guest writer for 21st Century Wire. He has more than 30 years experience in the energy, economic and finance domains. Trained at London UK’s University College, he has had specially long experience of energy policy, project administration and the development and financing of alternate energy. This included his role of in-house Expert on Policy and Programming at the DG XVII-Energy of the European Commission, Director of Information of the OAPEC technology transfer subsidiary, AREC and researcher for UN agencies including the ILO. -facebooktwittergoogle_plusredditpinterest

Global Currency Race: Germany is back in Pole Position

“Don’t call it a comeback…” - LL Cool J Editors Note:  Over the last 20 years the US and Europe have opted to stop manufacturing actual things, in favour of running Ponzi-style, get-rich-quick economies wholly based on speculation and worthless subprime paper sales. What was once the lowly teller window reserved for Third World African, Latin and Asian countries, EU orphan economies like Portugal, Greece and Ireland have now joined the queue begging at the altar of the International Monetary Fund (IMF). With the EURO single currency now permanently on the ropes, other light and middleweight economies in the Eurozone may also be joining that very same IMF queue. Meanwhile, the Teutonic Tiger has remained steady and is now in pole position to take China on head-to-head in the coming economic realignment of the early 21st century. Yes, you heard it right- the Deutsch Mark could be back… with a vengeance.     Keiser: Germany has been quietly shoring up its reserves.
 
 

Time to dust off those old Deutsche Marks?

 
facebooktwittergoogle_plusredditpinterest