10 Mar 2017

The Next Terrorist Atrocity

Brian Cloughley

Official Washington refers to the Islamic State (IS) terrorist organization as ISIS, the Islamic State of Iraq and Syria, and although this regional description is clearly out of date the fact remains that IS is a loose international association of quasi-religious thugs whose likeness to human beings is marginal and whose savagery is almost beyond comprehension. Its attack on a hospital in Kabul on March 8 was indicative of the depths to which it will sink in its contemptible campaign of terror.
President Trump has thrown down the American gauntlet at the feet of these barbarians and sworn to destroy them, which is a laudable aspiration, because they are intent on creating mayhem throughout the world.  Their declared ambition is to establish a so-called Caliphate “claiming exclusive political and theological authority over the world’s Muslims,” and although they first began to operate in the Middle East, where they are being opposed militarily and with moderate success by disparate groupings of national and cross-national forces, they have expanded well beyond their initial bases.
IS terrorist groups and affiliates are thriving most markedly in Afghanistan, Bangladesh, Egypt, Indonesia, Nigeria, Pakistan, the Philippines, Yemen and even Saudi Arabia.  Following the US-NATO war that reduced Libya to anarchy in 2011 IS was given the opportunity to establish control over wide areas of North African territory and expand in numbers and political influence.
Their very existence is a festering crisis, a truly malignant virus that is spreading inexorably round the world, for IS’s influence is being felt in Western and Asian countries where it has pulled in followers who may be even more dangerous than those in Muslim states. The US Chairman of the Joint Chiefs of Staff, General Dunford, said it has enlisted about 45,000 followers in over 100 countries, and there is evidence that its recruiting campaign has been successful in attracting anti-social misfits from many walks of society.
Mr Trump said he instructed his administration to develop a “comprehensive plan” to defeat Islamic State, and declared that “we will work with our allies, including our friends and allies in the Muslim world, to extinguish this vile enemy from our planet.”  The Pentagon has sent the White House a preliminary proposal, described as a “framework for a broader plan aimed at countering the extremist group beyond Syria and Iraq,” but it is difficult to see how any military-based strategy is going to succeed in neutralizing the fetid octopus of Islamic State.  As with his predecessors, President Trump has made an anti-terrorist statement of well-intentioned reassurance, but it remains to be seen what direction his policy will take his country and the world.
In the meantime the terrorist threat is growing outside the Middle East.  Even while IS is being defeated in conventional warfare in Syria and Iraq, and gradually being driven out of its former safe havens, it is concentrating on extending its evil influence elsewhere, and attacks by its fanatics have had a considerable effect around the world.  The tourist industries in many countries, most notably France, Turkey, Egypt and Tunisia have suffered grievously, and the New York Times reported that in France, for example, “growth in hotel room bookings after the Paris attacks fell to single digits from 20 percent. After the Brussels bombings, bookings went negative, and after Nice, bookings fell by double digits.”  This may seem a relatively minor terrorist impact in international terms, but it is extremely serious for those directly affected, and for the economies of regions and countries.  The leaders of Islamic State are well aware of the poisonous effect of their terrorist outrages on all sectors of national communities, and continue to look for means of continuing their campaign of disruption wherever they might detect weakness. It is alarming to consider what opportunities they might seize to create further and perhaps more lasting chaos.
***
It can be unwise to attempt to forecast the future.  We have recently seen major prediction errors by pollsters worldwide, notably on the outcome of Britain’s vote about leaving the European Union and the even more unexpected outcome of the US Presidential election, and the forecasting business is so suspect that some French newspapers have decided to forgo polling in the run-up to the French presidential election in April-May.
The Chinese poet Lao Tzu told the world over two thousand years ago that “those who have knowledge, don’t predict ; those who predict, don’t have knowledge,” and his sagacious observation has by and large been ignored ever since.  We tend to want to believe what we are conditioned to accept, and not the least of these beliefs is that there are experts who can actually predict the future with accuracy.  And having made it clear that such prediction is at best a risky business, I now forecast that there is going to be a terrorist attack involving what is known as a “dirty bomb”.
The dirty bomb, or radiological dispersal device (RDD) is a particularly horrible weapon that the US government describes as combining conventional explosives, such as dynamite, with radioactive material in order to create disruption and panic rather than overwhelming destruction, as effected by a ‘normal’ nuclear weapon.  It points out that a dirty bomb is “not a ‘Weapon of Mass Destruction’ but a ‘Weapon of Mass Disruption,’ where contamination and anxiety are the terrorists’ major objectives.”
What is particularly disturbing is that the radioactive material intended for these devices need not be even close to weapons’ grade, and can be obtained from the most commonplace sources. As the Stimson Centre observes, “dirty bombs are attractive to terrorists because the materials necessary to build the weapons are relatively easy to acquire and the technology is simple. Materials with the potential for serious attacks are used in hundreds of medical, industrial, and academic applications.”
As long ago as 2002, Michael Levi and Henry Kelly wrote in Scientific American that “Radiological terror weapons could blow radioactive dust through cities, causing panic, boosting cancer rates and forcing costly cleanups” and Foreign Policy magazine recorded that “some have pointed out that if a simple radiological device had been used in conjunction with the World Trade Center explosive, large areas of lower Manhattan would still be uninhabitable.”
The attraction for Islamic State to pursue construction and explosion of radiological weapons is obvious, but what is not at all clear is what the international community is doing about preparing for the dirty bomb.
An explosion of this type in the center of most cities could be appalling because of the massive effects of panic. In some countries the effects might be containable, although there is evidence that panicked crowds are an international phenomenon.  What is certain is that in cities such as Delhi and Karachi — vast, uncontrollable metropolises — explosion of a dirty bomb, immediately followed by word-of-mouth and social media transmission of shock and alarm, would in all probability result in massive national disruption, with millions of people fleeing the unknown in sheer terror.
President Trump and his experts must certainly continue to fight the fanatics of Islamic State, and no doubt they are thinking ahead to what IS might be preparing to do to again disrupt the already shaky international order. But combating IS demands more than military expansion and improved battlefield tactics.  The major challenge is for leaders of all the world’s nations to acknowledge the possibility of a dirty bomb attack and prepare their citizens to cope with it.  Creating panic could be the Islamic State’s most effective tactic.

Why Everybody But NATO Lives Happily With Russia

JONATHAN POWER

The state of being vigorously anti the Russian president, Vladimir Putin, is becoming out of control. It is in danger of becoming pathological and self-destructive. What does the West gain in the long run if it sees nothing ahead but being anti-Russia?
The West is in danger of having embarked on a journey to nowhere. Russia is not going to change significantly in the near future. The very close Putin/ Dimitri Medvedev team are going to remain in the saddle for a long time.
We are not yet in a second Cold War. Those who say we are don’t know their history.
The Cold War was years of military confrontation, not least with nuclear arms. It was a competition for influence that stretched right around the globe and it was done with guns. There was the Cuban missile crisis when nuclear weapons were nearly used.
If Putin is here to stay we have to deal with him in a courteous and constructive way. Russia is not a serious military threat. President Donald Trump’s proposal for an increase in US defence spending is larger than the whole of the Russian defence budget.*
Neither is Russian ideology. When the Soviet Union was communist there was a purpose behind Moscow’s overseas policies – it was to spread the type of government of the supposedly Marxist-Leninist workers’ state. No longer.
Today the militant anti-Putinists – I would include in this group Barack Obama, most of the big media in much of the Western world and most, but by no means all, EU leaders – believe they are defending the US-led “liberal democratic order”. They believe that Russia is intent on undermining it. In their eyes it is democracy against authoritarianism.
But it is not.
As the renowned Russian scholar Gordon Hahn tirelessly points out, there are a significant number of democracies that are non-NATO. India is the most important with its massive population. New Delhi has excellent relations with Moscow and in no way feels challenged.
Neither does Moscow feel that India is engaged in nefarious activity on Russia’s southern flank. Just as the US doesn’t arm itself against Mexico and vice versa so India and Russia don’t prepare to be militarily engaged against the other.
India has neither encouraged nor supported illegal, revolutionary seizures of power in countries neighbouring Russia. For its part Russia has never given Pakistan any encouragement in its confrontations with India, even when Beijing was a close ally of Islamabad.
Indeed, we see a continuously improving relationship between New Delhi and Moscow. BRICS, for example, that joins these two countries with Brazil, South Africa and China brings the five of them economically closer and develops amity between them. The first two are also democracies that in no way feel they are in another camp.
Moscow has good relations with other Asian democracies – with Japan, South Korea, Taiwan, Indonesia and Sri Lanka. There are few tensions between Tokyo and Moscow, even though they have failed so far to settle the sensitive dispute over ownership of the Kuril islands – a leftover from World War 2.
During Putin’s recent trip to Tokyo to talk with Prime Minister Shinzo Abe there was a significant breakthrough on the issue. The two agreed that their countries would engage in joint economic activity on the islands.
South Korea is the US’s firm ally. Nevertheless, Moscow has not raised the issue of the US deployment of an anti-missile defence system in South Korea, aimed at North Korea. Recently Seoul signed some 20 economic agreements with Moscow. Moreover, South Korea plans to sign a free trade agreement with the Russian-led Eurasian Economic Union- the very one that the US and the EU leant on Ukraine not to join.
There is no sign that Russia is bent on subverting democracy. Democracy flourishes all over the world – in nearly every Latin American country, in most of Africa and a good part of Asia. None of these countries complain of Russian opposition to their “liberal democratic order”.
They live happily with Moscow, (as does authoritarian China). So why can’t the West?
The truth is the West would be enjoying the same benign relationship with Russia if under presidents Bill Clinton, George W. Bush and Barack Obama, the US hadn’t, step by step, put Russia under the hammer by expanding NATO and breaking its solemn promise not to.
Neither Ronald Reagan nor George H.W. Bush, who understood Russia, saw fit to expand NATO. Richard Nixon, a Russophile, would never have.
Russia’s own post-Soviet politics have veered from chaotic democracy under Boris Yeltsin to a half-way-house authoritarianism under Putin. For all their deficiencies they have been miles away from the repression of Soviet rule.
The West is going to have to live with this kind of Russia for a long time. The West must stop being both paranoid and vindictive. This is counterproductive and goes nowhere.

UK Chancellor Hammond commits to further years of austerity

Robert Stevens 

Chancellor Philip Hammond meant his Spring Budget to be as uncontroversial as possible, given that the government is to trigger Article 50 beginning the process of the UK exiting the European Union (EU) by the end of this month.
However, the media seized on his decision to increase Class 4 National Insurance contributions (NICs) for the self-employed from 9 pence to 11 pence. The move will hit 2.5 million people (many on low incomes) out of 4.8 million self-employed—raising £500 million a year for the Treasury. It brings the rates paid by the self-employed closer to workers directly employed by businesses.
The increase breaks a promise made in the 2015 Tory election manifesto promising no tax rises over the five-year parliament.
But of greater import still for all working people is that Hammond’s budget was based on a commitment to continue with five more years of austerity.
Hammond’s speech painted a rosy picture of an economy that “continued to confound the commentators with robust growth.” But he made clear that the expanding wealth of the major corporations and the super-rich will not lead to an end in austerity because their enrichment depends on the impoverishment of the working class.
The budget confirmed what David Cameron, Prime Minister Theresa May’s predecessor, said in 2009—that the UK was entering an “age of austerity.”
Hammond told MPs there would be no retreat from the attacks on the jobs, wages and living standards of the working class: “As we prepare for our future outside the EU, we cannot rest on our past achievements. We must focus relentlessly on keeping Britain at the cutting edge of the global economy. The deficit is down, but debt is still too high. And our task today is to take the next steps in preparing Britain for a global future.”
The central task was “getting Britain back to living within its means,” Hammond declared.
The Financial Times noted that Hammond left in place every austerity policy launched by Cameron’s chancellor, George Osborne, “including cuts to in-work benefits—that will lead to a large increase in income inequality over the next few years. Despite the rhetorical commitments, there is very little help for families who are ‘just managing’.”
Daily Express columnist Leo McKinstry said the government was correct to continue the “policy of austerity” and “Hammond rightly warned the job is far from complete.”
To underscore what this means, the Institute of Fiscal Studies made a public statement on the budget, with Paul Johnson declaring that Britain faces “a third parliament of austerity.”
He noted that Britain was still due to be borrowing around £20 billion in 2020, which is £30 billion more than intended a year ago. “That leaves a lot of work to do in the next parliament to get to the planned budget balance. It looks like being, I’m afraid, a third parliament of austerity.”
Johnson noted that forecasts suggest that by 2022 people will have gone 15 years without an effective pay rise and average earnings will be no higher in 2022 than they were in 2007. “I’m rather lost for superlatives,” he said. “This is completely unprecedented.”
When Hammond replaced Osborne in May’s first Cabinet after becoming prime minister last July, claims were made that the austerity agenda was being relaxed, with Hammond shelving Osborne’s target of reaching a budget surplus by 2020. The reality is that austerity is to be extended for years into the future and must necessarily be intensified as the UK exits the EU.
Hammond said that in the autumn (2016 budget) Statement, “I set out our plan to return the public finances to balance in the next Parliament.”
To further facilitate the privatisation of education, Hammond announced that another 110 free schools—state-funded but privately run outside of Local Education Authority control—will be opened, including a new generation of grammar schools.
The only extra spending that Hammond was prepared to pledge was a drop in the ocean. With many forecasting that adult social care provision was on the brink of going under within 12 months, Hammond pledged just £2 billion to social care in England over the next three years, with a paltry £1 billion available in 2017-2018. Social care funding has been eviscerated by nearly £5 billion in cuts over the previous five years.
Even a recent report by parliament’s Tory-dominated Communities and Local Government Committee estimated that the funding gap in adult social care ranges from £1.3 billion to £1.9 billion in 2017-2018, and will increase from £1.1 billion to £2.6 billion in 2019-2020.
Nothing is to be provided in extra funding or resources for the National Health Service (NHS), despite its situation being described by the British Red Cross as one of a “humanitarian crisis”. Hammond rolled out the government’s standard line that an extra £10 billion in annual funding is being given to the NHS by 2020.
He never mentioned that the NHS is having more than £40 billion slashed from its budget in “efficiency savings” from 2010 to 2020. These are to be imposed via Sustainability and Transformation Plans (STPs) being implemented in 44 regions of the UK. Hammond said the “Treasury will work closely with the Department of Health over the course of the summer as the STPs are progressed and prioritised.”
While poverty now affects at least a third of the population, with the social right to health, education and housing being destroyed, the demands of the sated ruling elite for further enrichment were met by Hammond. “I am listening to the voice of business,” he declared. “My ambition is for the UK to be the best place in the world to start and grow a business.”
He boasted how “In 2010 Corporation Tax was 28 percent. From April this year, it will fall to 19 percent, the lowest rate in the G20. In 2020, it will fall again to 17 percent, sending the clearest possible signal that Britain is open for business.”
Labour’s leader Jeremy Corbyn described the budget as “complacent”, while presenting no alternative beyond demands for trifling amounts of money to be allocated to the NHS. “The money ought to be made available now. Because this government ducks really tough choices, like asking corporations to pay a little bit more in tax,” he said.
The fact is that Labour in office under Corbyn would continue the same austerity agenda and protect big business. Corbyn told MPs that under the austerity programme, “council services are suffering,” noting that 67 libraries nationally were closed last year, along with 700 Sure Start centres and 600 youth centres.
He said, “These painful decisions being taken by councils not because they want to do it, but just because they don’t have enough money even to keep essential services running because of the slashing of their budgets, year on year.”
This is staggering hypocrisy. Austerity is the official policy of the Labour Party. Labour controls the vast majority of councils in the UK’s main towns and cities. These councils “do want to do it” and have been faithfully imposing every cut demanded by successive Labour and Conservative cuts since mass austerity was initiated, following the £1 trillion bailout of the banks by the 2007-2010 Brown Labour government.
Corbyn’s election as Labour leader made not an iota of difference. At Labour’s last conference, councils under its control were instructed to continue imposing austerity and not to set “illegal budgets”. Councils were warned in a letter from Corbyn and Shadow Chancellor John McDonnell that disciplinary measures would follow if austerity was not imposed.

Fillon survives challenge as French right’s presidential candidate

Alex Lantier & Stéphane Hugues 

In an emergency meeting of Les Républicains’ (LR) Political Bureau Monday night, LR candidate François Fillon received a unanimous vote of confidence to continue his presidential campaign. Nonetheless, the vote, coming after a virtual disintegration of his campaign staff and the eruption of bitter recriminations among LR’s central leadership, has exposed the deep divisions provoked inside LR by its rapid shift far to the right.
Fillon’s campaign has been badly damaged since January when reports emerged, in retaliation for his proposal of a French-German-Russian alliance against the Trump administration in Washington, apparently showing that he organized no-show jobs for his wife Penelope, worth €900,000. Some 71 percent of French voters want Fillon, who has advanced an unpopular program of deep social austerity, to withdraw.
Before the Monday LR political bureau meeting, significant sections of LR rallied behind calls for Alain Juppé, Fillon’s main rival for the LR presidential nomination, to run as an emergency replacement for Fillon. Polls currently show that if Juppé ran, he would reach the second round of the elections, where he would face neo-fascist National Front (FN) candidate Marine Le Pen and beat her, winning the presidency. Fillon, on the other hand, would be eliminated in the first round.
Starting late last week, virtually the entire top leadership of Fillon’s campaign staff resigned, more or less openly attacking Fillon. Last Thursday, assistant campaign director Sébastien Lecornu and campaign treasurer Gilles Boyer resigned, with Boyer denouncing Fillon for adopting neo-fascistic positions: “You don’t fight the FN by trying to be further to its right.” On Friday it was the turn of Fillon’s campaign spokesman Thierry Solère to leave, and on Sunday campaign director Patrick Stefanini sent his resignation letter to Fillon.
If Fillon ran and LR were defeated, Stefanini wrote, this “would place center-right voters before an unbearable dilemma,” namely, of voting for the FN or for candidates close to the unpopular Socialist Party (PS) government. “I cannot accept to work on such a perspective,” he added.
Fillon responded by organizing a right-wing protest in defense of his campaign on Sunday afternoon at the Trocadéro palace, in a wealthy neighborhood of Paris. It gathered several thousand protesters and mobilized a large cadre of operatives close to the far right, including the Common Sense movement of anti-gay marriage activists.
He also went on France2 television that night and stressed that, as the winner of the LR primary, he was the only legitimate LR candidate and that LR’s Political Bureau could not remove him. “It is not the party that will decide. We will not choose in backstage maneuvers. … If voters had wanted Alain Juppé, they would have voted for him in the primaries.”
In the event, Fillon received a unanimous vote of support from LR’s political bureau, apparently after Fillon received the support of Nicolas Sarkozy—who, as president from 2007 to 2012, also pursued a strategy of appealing to FN voters on a nationalistic and far-right basis.
Juppé issued a statement Tuesday morning definitively declaring that he would not run. He attacked his own party’s membership, stating that “the hard core of LR members has become radicalized” and blamed their shift towards far-right positions for his inability to rally the party. “I am not in a position to carry out the necessary unification of the party around a common platform,” he said, “and this is why I am confirming—once and for all—that I will not run for the presidency of the Republic.”
Juppé’s supporters within LR denounced Sarkozy’s role in the internal LR discussions, with one telling Le Monde: “Sarkozy prefers to lose with Fillon than to win with Juppé. It’s irresponsible.”
The eruption of a political crisis that threatens to split LR apart is a product of the broad shift to the right of the European Union (EU) since the 2008 economic crisis and, in France, of the rapid turn far to the right of President François Hollande’s PS government. As he sought to cultivate a far-right constituency for policies of austerity and war, particularly within the police and security forces, Hollande adopted ever larger portions of the FN’s program.
He imposed a state of emergency in response to attacks carried out by terror networks used by the NATO powers for their war in Syria; closed down refugee camps; rounded up and deported Roma families; and formed a paramilitary national guard. Hollande repeatedly invited FN presidential candidate Marine Le Pen to the Elysée presidential palace to legitimize her party.
LR was trapped between the PS’ hysterical drive towards the far right, and the rising influence of the FN. While Juppé tried to pose as a moderate, Sarkozy and Fillon spoke for those sections of LR that sought to push it further to the right. They tried to attack both the FN and the PS from the right, to win support of Catholic fundamentalist circles as well as sections of big business looking to carry out slashing attacks on basic social programs, such as Social Security.
They are also apparently trying to stop a rapid shift towards the FN of much of the LR voting base and political periphery, by taking over much of the FN’s program.
Philippe de Villiers, a right-wing nationalist traditionally close to LR forces but who was also courted by PS-backed candidate Emmanuel Macron, is now backing Le Pen. He declared that he supports her because “her hand will not tremble when she needs to take painful decisions,” and because he said she had absorbed the conceptions put forward by himself, fascistic former Sarkozy advisor Patrick Buisson, and pro-Vichy journalist Eric Zemmour.
De Villiers wrote, “Marine has read our books [of Villiers, Buisson and Zemmour] and has understood where we’re going. The result is that our readership is ditching Fillon. The right will vote for Marine Le Pen in the second round, she can win.”
At the same time, the record of the PS government and of Fillon underscores that large sections of the political establishment are now adopting political positions very close to those of the FN. This underscores the bankruptcy of any attempt to halt the attacks on basic social and democratic rights in France by voting for candidates closer to LR or the PS. Fillon’s survival and the evolution of the LR campaign underscores that these fundamental rights can only be defended by the working class, in opposition to the shift of the French and European ruling class far to the right.

European Central Bank maintains a balancing act

Nick Beams

The European Central Bank has sought to keep balancing between demands from Germany for a pull-back from its low-interest rate regime, and retaining its present “accommodative” monetary policies. The pressure has increased over recent months, with signs of increased euro zone inflation and marginal improvements in growth.
The ECB’s governing council, which met in Frankfurt yesterday, left its interest policy and bond buying program on hold but decided to remove a key sentence from its statement.
ECB president Mario Draghi told a press conference that a sentence stating that “if warranted, to achieve its objective the governing council will act by using all the instruments available within its mandate,” which appeared in previous statements, was no longer included.
This was a “signal that there is no longer that sense of urgency in taking further actions”—a concession to German demands.
Headline inflation in Europe has moved closer to the 2 percent level that the ECB says is its target. The rise, however, has been due mainly to increased oil and unprocessed food prices. Draghi said “the risks of deflation have largely disappeared” but he was not prepared to pronounce “victory on the inflation front.” For that to happen, he stated, wages would have to rise at the faster rate. The governing council’s members wanted to be “convinced that they actually see a self-sustained adjustment in inflation” and “we don’t see it yet.”
In addition to demands from Germany for a winding back of the low-interest rate regime, which is regularly denounced as impacting adversely on German savings, the ECB is facing pressures from the policies of Donald Trump’s administration in the United States, in particular over currency values and trade.
Those pressures have increased following the latest data, which showed that the US trade deficit in January jumped to its highest level in five years. It rose by 9.6 percent to $48.5 billion, up from $44.3 billion in December, the largest monthly trade gap since the deficit of $50.2 billion in March 2012.
The Trump administration has focused on China, insisting that it has benefited from the international trading arrangements since its entry into the World Trade Organisation in 2001, to the detriment of the US economy. White House officials have also taken aim at Germany, declaring that, with the euro’s establishment as the European Union’s common currency, Germany has benefited in international markets because the deutschmark’s value would have been significantly higher.
During the ECB press conference, the attacks on Germany were raised in a question that referred to the country’s trade surpluses and the large surplus for the euro zone as a whole.
Draghi delivered a reply in polite language but the underlying tensions were discernible. He repeated the defence of euro zone policy that he made to the European parliament last month after US criticism.
“I don’t think there is any merit in attacking Germany,” Draghi said. “The currency of Germany is the euro and the euro area’s monetary policy is conducted by the ECB.” The euro’s exchange rate was “determined by market forces.”
Obviously prepared for such questions, Draghi quoted from a US Treasury determination of October 2016 that Germany was not a “currency manipulator.” The euro’s real effective exchange rate was close to its historical average, he said. “But the [real] effective exchange rate of the dollar is off the historical average. So it means that it’s not the euro, which is the culprit for this situation.”
The ECB’s caution in reading too much into the uptick in inflation and growth figures was also reflected in a global economic assessment issued by the Organisation for Economic Cooperation and Development (OECD) on Tuesday.
It said global gross domestic product was expected to “pick up modestly” to around 3.5 percent in 2018, from just under 3 percent in 2016. But a “disconnect between financial markets and fundamentals, potential market volatility and policy uncertainties” could “derail the recovery.”
Referring to the boost in share prices—the US market is up by about 15 percent since Trump’s election—the OECD noted an apparent “disconnect” between the positive assessment of economic prospects as reflected in market valuations and forecasts for the real economy.
The improvement in market sentiments, the OECD said, “contrasts with continued low growth of consumption and investment, which still lag well-behind previous recoveries, and the slowdown in productivity growth, with persistent inequality.”
The OECD noted a risk of exchange rate volatility due to the rising variance in interest rates between major economies. The world’s two major central banks, the US Federal Reserve and the ECB, are on divergent paths. While the ECB decided to maintain its rate of minus 0.4 percent, the Fed is expected to again raise its base interest rate by 0.25 percent at its meeting next week.
The report noted that uncertainties in many countries about future policy actions and political directions were “high” and there was “significant uncertainty about the future direction in trade policy globally.” No-one was named, but this was a reference to Trump’s “America First” trade agenda and the rise of right-wing economic nationalist parties in Europe.
The same issue surfaced in the final question at Draghi’s press conference. The ECB president had emphasised the importance of statements from G20 summit meetings about avoiding competitive currency devaluations and other protectionist measures.
Draghi was asked how important it was that these commitments be maintained at the G20 meeting in Hamburg, Germany on July 7-8, given there were reports that such commitments may be dropped.
There is uncertainty over the make-up of the G20 meeting because of elections in the Netherlands and the presidential election in France prior to the summit. Right-wing economic nationalist parties could make significant gains. While the polls are currently running against her, Marine Le Pen of the right-wing National Front could even take the French presidency.
Draghi replied that the commitments not to engage in competitive devaluations and to maintain open trade had been “the pillars of world prosperity” for many decades and it was important that the G20 reaffirmed them.
It would be a major step for the G20 to drop its previous commitments. The fact that the possibility is even being raised and has reached the ear of the ECB president points to the sharp rise of tensions in global economic relations.

EU summit reveals sharp divisions within Europe and tensions with US

Johannes Stern 

The annual Euro Summit meeting of the 28 EU heads of government, which began Thursday, was dominated by sharp transatlantic tensions and a deep crisis of the European Union (EU).
Conflicts between Germany and the United States intensified ahead of Chancellor Angela Merkel’s first meeting with President Donald Trump next week. On Monday, Peter Navarro, Trump’s economic adviser, described the US’s trade deficit with Germany as a “serious matter” and as “one of the most difficult issues” for American trade policy.
“I think that it would be useful to have candid discussions with Germany about ways that we could possibly get that deficit reduced outside the boundaries and restrictions that they claim that they are under,” Navarro said in Washington.
Germany has responded to Washington’s increasingly belligerent rhetoric by attempting to bind Europe together under its leadership and prepare “for a trade war with the United States,” as the Süddeutsche Zeitung newspaper put it.
The European powers are seeking to exploit Trump’s cancellation of the Trans-Pacific Partnership to expand economically into Asian markets. In a piece entitled “Europe counters Trump” the Süddeutsche Zeitung reported on the draft statement for the summit: “At their meeting in Brussels, the EU heads of government want to stand up to Trump’s ‘America first policy’…and are determined to fill the hole that the United States will leave behind following Trump’s withdrawal from world trade.”
The EU is striving to rapidly conclude a trade agreement with Japan, which is the second-largest Asian economy after China, and is currently negotiating free trade deals around the world with a further 20 countries, among them Singapore and Vietnam.
Before travelling to Brussels, Merkel noted in a statement to the German parliament “that Europe will act together against unfair and protectionist trade practices, and firmly defend its interests, whenever and wherever this is necessary.” In the future, she said, the EU had “to be capable of carrying out independent crisis management.” Germany was “reliant not only on having access to the single market, but also to global markets.”
In order to pursue these global interests militarily, Germany and other European powers are seeking to establish a European army. Ahead of Thursday’s summit, a meeting of European foreign and defence ministers on Monday agreed to the creation of a joint command centre for military interventions. According to diplomats, the headquarters will begin work this month and be fully operational by June.
Germany’s aspirations to rise to the position of Europe’s hegemon, and its mounting conflict with the United States, which as a military protective power and arbitrator has supported European unity since the end of World War II, are intensifying the already sharp divisions within the European Union.
This found expression at the summit in a sharp dispute over the re-election of European Council President Donald Tusk. Although the Polish government vehemently opposed the re-election of Tusk, a former Polish prime minister, the summit extended his term in office. The election of a politician into a senior position within the EU against the will of his own government is an unprecedented event in the history of the EU. Tusk is a member of Poland’s largest opposition party, Civic Platform (PO), which is engaged in a bitter dispute with the governing PiS.
PiS chairman Jaroslaw Kaczyński described Tusk prior to the summit as “Germany’s candidate.” Poland’s foreign Minister, Witold Waszczykowski, spoke in the aftermath of the election of a “diktat from Berlin.” “We now know that it is an EU in which Berlin calls the shots,” he told the Polish media. The Polish delegation announced it would block all further decisions at the summit with its veto.
In an effort to keep the right-wing, anti-Russian Polish government on board, Berlin has adopted a more strident tone against Russia. German Foreign Minister Sigmar Gabriel (SPD) demonstratively stopped off in Warsaw on his way to a visit in Moscow. Along with the three Baltic States, Poland is among the four Eastern European countries where NATO is in the process of deploying 4,000 military personnel, together with tanks and other heavy weapons. Gabriel visited the battalion being led by the German army in Lithuania last week.
Speaking in Moscow, Gabriel vehemently defended the first stationing of German troops in Eastern Europe since the genocidal war launched under the Nazis and blamed “the violation of borders in the centre of Europe” on Russia.
Russian Foreign Minister Sergei Lavrov rejected Gabriel’s accusation that his country was threatening NATO’s eastern members. “We have different statistics on that,” he stated. In fact, Russia was being “encircled by NATO weapons, NATO units… NATO ground troops are appearing on our borders, including from the Federal Republic of Germany.”
The intensifying crisis in the Balkans was also on the agenda of the EU summit. The region was being subjected to “challenges and tensions,” the EU’s foreign policy chief Federica Mogherini warned in Brussels, “far more than ever.” She warned that the Balkans were increasingly becoming “a chessboard for great power games.”
Britain accused Russia at the beginning of the week of fomenting tensions in the region. Moscow was involved in the “undermining of countries in the Western Balkans,” which was “completely unacceptable,” British foreign Minister Boris Johnson stated. In truth, it is the Western powers that are fomenting conflict in the Balkans. In the 1990s, they tore Yugoslavia apart and bombed it. Less than a year ago, in spite of Russian warnings, NATO accepted Montenegro as a new member in the military alliance.
The growing tensions over the Balkans are only the most visible manifestation of the parallels in Europe to the run-up to the First World War over a hundred years ago. With world capitalism gripped by an ever-deepening economic and political crisis in every country, divisions within Europe and between the European powers and America increasingly take the form of protectionism, backed by rearmament and the threat of military force.

The WikiLeaks exposures and the CIA’s threat to democratic rights

Patrick Martin

Speaking at a cybersecurity conference at Boston College Wednesday, FBI Director James Comey said, “there is no such thing as absolute privacy in America.” Every activity that Americans engage in, including conversations between spouses and with members of the clergy and attorneys, is within “judicial reach.” He declared, “In appropriate circumstances, a judge can compel any one of us to testify in court about those very private communications.”
The FBI director did not add, although he could well have, that a judicial order is completely irrelevant to the US military-intelligence apparatus. The US government has far more direct methods than court orders to learn what its citizens are thinking and talking about, through the use of sophisticated cyberweapons. These include the thousands of hacking tools whose existence was made public Tuesday by WikiLeaks, in a data release exposing efforts by the CIA to turn millions of ordinary electronic devices, from cellphones and smart TVs to the computer systems running most cars, into spy weapons.
The FBI director’s declaration that there is no right to privacy was greeted with a yawn by the corporate media, which barely reported his comments, and by Democratic and Republican party politicians. This is in keeping with the overall treatment of the WikiLeaks revelations, which has been one of indifference to the threat to democratic rights exposed in the CIA cyberweapons cache.
As far as the media is concerned, anyone who raises concerns about the right to privacy, or other democratic rights, being threatened by the national-security apparatus is an agent of Russia. This position was put most bluntly by the Washington Post, in its lead editorial Thursday, headlined, “WikiLeaks does America’s enemies a big favor.”
The editorial begins with a flat-out, 100 percent defense of the CIA, declaring, “The first thing to say about the archive of cyberhacking tools stolen from the CIA and released by WikiLeaks is that they are not instruments of mass surveillance, but means for spying on individual phones, computers and televisions. There is no evidence they have been used against Americans or otherwise improperly …”
The editorial continues, “It follows that the targets of the hacking methods, and the prime beneficiaries of their release, will be Islamic State terrorists, North Korean bombmakers, Iranian, Chinese and Russian spies, and other U.S. adversaries.” The editorial goes on to smear WikiLeaks as a tool of Russia, and denounces “privacy zealots” who “are, in effect, advocating unilateral U.S. disarmament in cyberspace.”
In response to such a brazen defense of the CIA, one is tempted to ask, why doesn’t the Washington Post simply announce that it is a propaganda arm of the U.S. government, tasked with the ideological and political defense of the military-intelligence apparatus? There is not a shred of an independent, critical attitude in this editorial. The newspaper swallows whole the CIA’s assurances that its agents are “legally prohibited” from spying on Americans. And it denounces WikiLeaks for acting as real journalists do, collecting information about government misconduct and making it public.
This from a newspaper that, 46 years ago, in conjunction with the New York Times, published the Pentagon Papers, over the vehement objections of the Nixon White House and the CIA and military leaders of the day, who raised the same cry of “national security.” One can only conclude that if someone brought the equivalent of the Pentagon Papers to the Post (or the Times ) today, the editors would immediately call up the FBI and have the leaker arrested.
The line of the Post has been repeated in innumerable forms in newspapers and on television. Former director of the CIA and the NSA Michael Hayden has been brought forward on nearly every news program to deliver the official government line. None of the major broadcasters adopt a critical line or seek to interview anyone who supports WikiLeaks and its exposure of CIA crimes.
A concrete demonstration of the relationship between the media and the military-intelligence apparatus is provided by a report posted on the web site of the New York Times earlier this week by David Sanger, the newspaper’s principal conduit for information that the CIA and Pentagon wish to make public.
Sanger wrote about how he and another Times reporter, William Broad, prepared last Sunday’s front-page report on US efforts to counter North Korean missile launches, headlined, “Trump Inherits a Secret Cyberwar Against North Korean Missiles,” which suggested that the US military had developed methods for causing North Korean missile launches to fail. The main thrust of this article, splashed across the newspaper’s front page, was that the countermeasures were insufficient, and more drastic actions were required against the supposed threat of a North Korean nuclear strike against US targets.
In a remarkable paragraph, Sanger describes “the sensitive part of these investigations: telling the government what we had, trying to get official comment (there has been none) and assessing whether any of our revelations could affect continuing operations.” He explains, “In the last weeks of the Obama administration, we traveled out to the director of national intelligence’s offices,” where, Sanger says, it was “important to listen to any concerns they might have about the details we are planning to publish so that we can weigh them with our editors.”
In plain English, the New York Times’ front-page “exclusive” was nothing more than a press release from the military-intelligence apparatus, aimed at spreading fear of North Korean nuclear capabilities in the upper-middle-class readership of the Times, and setting the tone for national media coverage of the issue. The political goal was to shape public opinion to support a preemptive US military attack on North Korea, an impoverished country the size of the state of Mississippi.
The main significance of the media response to the WikiLeaks revelations is that it demonstrates the complete erosion of democratic consciousness in all the institutions of the American ruling elite. In any serious accounting of the threats to American democracy, the CIA would be in first place: America’s own Gestapo, what even President Lyndon Johnson described as a “damned Murder Incorporated” for its brutal methods of assassination and provocation across the Caribbean and Latin America.
There is no greater danger to the democratic rights of the American people than the military-intelligence apparatus of the American government itself, the last line of defense for a crisis-stricken and historically doomed ruling elite.

9 Mar 2017

MISF Du Pré Grants for Multiple Sclerosis Researchers from Developing Countries 2017

Application Deadline: 30th June 2017
Eligible Countries: Emerging Countries
About the Award: MISF offers Du Pré Grants to MS researchers from emerging countries to enable them to make short visits to established MS research centres outside their own country, either to learn from each other or to carry out parts of joint research projects. The aim is to encourage cross-fertilisation of skills through collaborative research projects. Two of the annual awards are supported by Stichting MS Research (the Dutch MS Research Foundation).

Type: Research
Eligibility: All candidates must:
  • be educated to post graduate level in an area relevant to multiple sclerosis (MS)
  • be citizens of an emerging country (all countries with a low, lower middle or upper middle income as defined by the World Bank)
  • focus their research in an area relevant to MS
Before nomination, candidates need to have identified a suitable project and discussed their involvement with the project supervisor of the host institution outside their own country. Candidates are encouraged to identify a suitable host institute and supervisor to develop their project proposal before applying.
Candidates are expected to return to their own countries at the end of the study period where they will contribute to advancing care and research in MS.
The grant may also be used as a supplement for work related to MS by a candidate who has been accepted for training in a recognised institute (within the six months prior to nomination) but who doesn’t have enough money to cover the total cost.
Number of Awardees: Not specified
Value of Research: Each grant is likely to be between UK £2,000 and £4,000, to a maximum of £5,000. The funds are intended to go towards travel and living costs, or to top up an existing grant to extend a visit.
Duration of Research: Visits generally last between two and six months.
How to Apply: Candidates must provide the following to apply: A letter from the candidate detailing their reasons for nomination and the requested grant amount. His or her curriculum vitae. Signed testimonies (references) from at least two people with whom the candidate has worked. A description of the field of research that the candidate wishes to be trained in or the research that he or she wishes to carry out A lay summary of the research proposal A letter of support from the supervisor of the host institution, indicating that appropriate facilities will be made available.
Award Provider: MISF

Attend the Google Launchpad Accelerator for Developers in Sub-Saharan Africa 2017

Application Deadline: 24th April 2017
Event Timeline: Lagos – 22nd September, Nairobi – 26th September, or Cape Town – 29th September
Offered annually? No
Eligible Countries: All African Countries
To be taken at (Continents): The Launchpad Accelerator is currently accepting applications from select countries in
  • Africa (Kenya, Nigeria and South Africa)
  • Asia (India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam)
  • Europe (Czech Republic, Hungary and Poland)
  • Latin America (Argentina, Brazil, Chile, Colombia and Mexico)
About the Award: Launchpad Build is an event series aimed at raising awareness, amongst intermediate and expert developers with an existing Web or Android application, on how they can leverage the power of Firebase to improve their productivity. With Firebase, developers are able to quickly develop high-quality applications, grow their user base and earn more money.
Come engage in talks and hands-on codelabs covering Firebase 2.0 with a focus on Analytics, Cloud Messaging, Crash Reporting, Test Lab, Pirate Metrics, Serverless with Firebase, Tensor Flow and much more. Through the Launchpad Build event, developers will get skills and resources necessary to start using Firebase in their applications.
Type: Event
Value of Program: 
  • Work closely with Google for 6 months
  • This includes 2 weeks of all-expense-paid training at Google Headquarters in the heart of Silicon Valley
  • Equity-free support
  • Access to Google engineers, resources, and mentors
  • Credits for Google products
  • Marketing spotlight opportunities
How to Apply: 
Award Provider: Google
Important Notes: Google will neither provide support nor reimbursements for visas, flights, accommodation and transportation to and from the events. Potential attendees are please advised to apply to attend events for which they can comfortably provide for their own travel and related logistics.

IOE-ISH Centenary Masters Scholarships for Developing Countries 2017/2018 – University College London

Application Deadline: Monday 10th April 2017 (23:59 London time).
Offered annually? Yes
Eligible Countries: Developing Countries
To be taken at (country): UK
Type: Masters
Eligibility: Candidates should:
  • Be citizens and residents of a low or lower-middle income country (as per World Bank website).
  • Have an offer to study a full time masters degree in London at the UCL Institute of Education (October 2017 start).
  • Not have studied or lived in the UK before.
Number of Awardees: Not specified
Value of Scholarship: ISH will provide accommodation for a year, while the IOE covers tuition fees.
Please note that these scholarships do not cover subsistence in London or travel.
Duration of Scholarship: 1 year
How to Apply: Students who have received an offer to study at the UCL Institute of Education, will receive an email with a copy of the application form.
If you have an offer and haven’t received the application form please contact IOEinternational@ucl.ac.uk (please include your full name and student ID in your email).
Award Provider: UCL Institute of Education

Canada’s Russian Aggression

Yves Engler

Why is the Trudeau government escalating its belligerence towards Russia?
Monday it confirmed that 200 Canadian troops would remain in the Ukraine for at least two more years. This “training” mission in the Ukraine is on top of two hundred troops in Poland, a naval frigate in the Mediterranean and Black Sea and a half dozen CF-18 fighter jets on their way to locations near Russia’s border. Alongside Britain, Germany and the US, Canada will soon lead a NATO battlegroup supposed to defend Eastern Europe from Moscow. About 450 Canadian troops are headed to Latvia while the three other NATO countries lead missions in Poland, Lithuania and Estonia.
From the Russian point of view it must certainly look like NATO is massing troops at its border.
Canada’s military buildup in Eastern Europe is the direct outgrowth of a coup in Kiev. In 2014 the right-wing nationalist EuroMaidan movement ousted Viktor Yanukovych who was oscillating between the European Union and Russia. The US-backed coup divided the Ukraine politically, geographically and linguistically (Russian is the mother tongue of 30% of Ukrainians).
While we hear a great deal about Russia’s nefarious influence in the Ukraine, there’s little attention given to Canada’s role in stoking tensions there. In July 2015 the Canadian Press reported that opposition protesters were camped in the Canadian Embassy for a week during the February 2014 rebellion against Yanukovich. “Canada’s embassy in Kyiv was used as a haven for several days by anti-government protesters during the uprising that toppled the regime of former president Viktor Yanukovych,” the story noted.
Since the mid-2000s Ottawa has actively supported opponents of Russia in the Ukraine. Federal government documents from 2007 explain that Ottawa was trying to be “a visible and effective partner of the United States in Russia, Ukraine and zones of instability in Eastern Europe.” During a visit to the Ukraine that year, Foreign Minister Peter MacKay said Canada would help provide a “counterbalance” to Russia. “There are outside pressures [on Ukraine], from Russia most notably. … We want to make sure they feel the support that is there for them in the international community.” As part of Canada’s “counterbalance” to Russia, MacKay announced $16 million in aid to support “democratic reform” in the Ukraine.
Ottawa played a part in Ukraine’s “Orange Revolution”. In “Agent Orange: Our secret role in Ukraine” Globe and Mail reporter Mark MacKinnon detailed how Canada funded a leading civil society opposition group and promised Ukraine’s lead electoral commissioner Canadian citizenship if he did “the right thing”. Ottawa also paid for 500 Canadians of Ukrainian descent to observe the 2004-05 elections. “[Canadian ambassador to the Ukraine, Andrew Robinson] began to organize secret monthly meetings of western ambassadors, presiding over what he called ‘donor coordination’ sessions among 20 countries interested in seeing Mr. [presidential candidate Viktor] Yushchenko succeed. Eventually, he acted as the group’s spokesman and became a prominent critic of the Kuchma government’s heavy-handed media control. Canada also invested in a controversial exit poll, carried out on election day by Ukraine’s Razumkov Centre and other groups that contradicted the official results showing Mr. Yanukovich [winning].”
For Washington and Ottawa the Ukraine is a proxy to weaken Russia, which blocked western plans to topple the Assad regime in Syria. As part of this campaign, 1,000 Canadian military personnel, a naval vessel and fighter jets will soon be on Russia’s border.
Where will this lead? A new cold war against a capitalist Russia? Or a much hotter war involving direct confrontation between Canadian and Russian troops?
What would the US response be to Russian troops massed on its border? The last time Russian missiles came within 90 miles of American soil, the world came close to nuclear war.
Canada is participating in a “game” of brinksmanship that could end very badly.

The Refugee Crisis Is a Sign of a Planet in Trouble

David Korten

The plight of immigrant families in the United States facing threat of deportation has provoked a massive compassionate response, with cities, churches, and colleges offering sanctuary and legal assistance to those under threat. It is an inspiring expression of our human response to others in need that evokes hope for the human future. At the same time, we need to take a deeper look at the source of the growing refugee crisis.
There is nothing new or exceptional about human migration. The earliest humans ventured out from Africa to populate the Earth. Jews migrated out of Egypt to escape oppression. The Irish migrated to the United States to escape the potato famine. Migrants in our time range from university graduates looking for career advancement in wealthy global corporations to those fleeing for their lives from armed conflicts in the Middle East or drug wars in Mexico and Central America. It is a complex and confusing picture.
There is one piece that stands out: A growing number of desperate people are fleeing violence and starvation.
I recall an apocryphal story of a man standing beside a river. Suddenly he notices a baby struggling in the downstream current. He immediately jumps into the river to rescue it. No sooner has he deposited the baby on the shore, than he sees another. The babies come faster and faster. He is so busy rescuing them that he fails to look upstream to see who is throwing them in.
According to a 2015 UN Refugee Agency (UNHCR) report, 65.3 million people were forcibly displaced by conflict or persecution in 2015, the most since the aftermath of World War II. It is the highest percentage of the total world population since UNHCR began collecting data on displaced persons in 1951.
Of those currently displaced outside their countries of origin, Syrians make up the largest number, at 4.9 million. According to observers, this results from a combination of war funded by foreign governments and drought brought on by human-induced climate change. The relative importance of conflict and drought is unknown, because there is no official international category for environmental refugees.
The world community will be facing an ever-increasing stream of refugees.
Without a category for environmental refugees, we have no official estimate of their numbers, but leading scientists tell us the numbers are large and expected to grow rapidly in coming years. Senior military officers warn that food and water scarcity and extreme weather are accelerating instability in the Middle East and Africa and “could lead to a humanitarian crisis of epic proportions.” Major General Munir Muniruzzaman, former military advisor to the president of Bangladesh and now chair of the Global Military Advisory Council on Climate Change, notes that a one-meter sea level rise would flood 20 percent of his country and displace more than 30 million people.
Already, the warming of coastal waters due to accelerating climate change is driving a massive die-off of the world’s coral reefs, a major source of the world’s food supply. The World Wildlife Federation estimates the die-off threatens the livelihoods of a billion people who depend on fish for food and income. These same reefs protect coastal areas from storms and flooding. Their loss will add to the devastation of sea level rise.
All of these trends point to the tragic reality that the world community will be facing an ever-increasing stream of refugees that we must look upstream to resolve.
This all relates back to another ominous statistic. As a species, humans consume at a rate of 1.6 Earths. Yet we have only one Earth. As we poison our water supplies and render our lands infertile, ever larger areas of Earth’s surface become uninhabitable. And as people compete for the remaining resources, the social fabric disintegrates, and people turn against one another in violence.
The basic rules of nature present us with an epic species choice. We can learn to heal our Earth and shift the structures of society to assure that Earth remains healthy and everyone has access to a decent livelihood. Or we can watch the intensifying competition for Earth’s shrinking habitable spaces play out in a paroxysm of violence and suffering.