7 Oct 2017

Are Europe and the Middle East Both on the Verge of Unraveling?

John Feffer

Democracy can be messy. In the northeast corner of Spain this week, democracy was downright chaotic.
Catalans went to the polls on Sunday to vote in a referendum on whether to stay in Spain or go their separate way. The Spanish authorities, however, declared the vote illegitimate and sent in the national police to disrupt the referendum.
In many locales, as the police swept into the polling station to seize the ballots, the Catalans merely hid all the voting paraphernalia. When the police left, the Catalans set up again to register voter preferences, and lines reformed outside.
Such Keystone Kops scenarios would have been amusing if not for the outright violence of the Spanish police, which beat voters with batons and fired rubber bullets into crowds. In The Independent, Hannah Strange and James Badcock write:
Video footage showed officers from Spain’s national police — 4,000 of whom had been brought in by the government to help quash the ballot — fighting with elderly voters, some of whom were left bleeding, and dragging young women away from polling stations by their hair.
The Spanish government has been monumentally stupid. Its case for unity is much stronger than Catalan leader Carles Puigdemont’s case for independence. The Spanish constitution of 1978 speaks of the country’s “indissoluble unity,” while also according Catalonia considerable autonomy. “The Catalan government claims the right to self-determination,” The Economist points out. “But international law recognizes this only in cases of colonialism, foreign invasion, or gross discrimination and abuse of human rights.” None of those conditions applies to Catalonia.
Sure, the relatively wealthy Catalans are aggrieved that a portion of their economic success is redistributed elsewhere in Spain. But that’s a fundamental element of the modern state. New Yorkers subsidize New Mexicans, London subsidizes Leeds, Germans subsidize Greeks. Catalans can certainly challenge the terms of the economic arrangement — after all, the poorer Basque region doesn’t share much of its tax revenues with Madrid — but neither Spanish law nor international law allows them to gather up all their marbles and go home.
Meanwhile, the very process by which Puigdemont rammed through the referendum doesn’t reflect well on his democratic credentials. Writes Yascha Mounk in Slate:
The government rushed the necessary legislation for the referendum through the Catalan Parliament without giving deputies adequate time to discuss it. It passed the legislation in a late-night session even though the opposition was absent. It vowed to secede from Spain even if a majority of the population stayed away from the polls. And, taking a page from Trump’s playbook, it has been smearing everybody from opponents of secession to judges doing their jobs as enemies of the people.
With only a 42 percent turnout for the referendum, the Catalan authorities have no authoritative mandate for a declaration of independence. Many people who opposed secession simply refused to vote. On the other hand, the Spanish government’s reaction may well have pushed more people into the independence camp. On Monday, thousands of protesters poured into the streets of Barcelona to protest the Spanish government’s actions and assert their popular sovereignty. On Tuesday, unions called a general strike for the same purpose.
Ultimately the Catalan crisis boils down to consent — whether the Catalans continue to agree to be part of the larger Spanish nation. In an 1882 essay on nations and nationalism, the French philologist Ernest Renan famously wrote that the nation is a “daily referendum.” He meant that the nation is a matter not of inviolate borders or ancient history. Renan continued:
A nation is therefore a great solidarity constituted by the feeling of sacrifices made and those that one is still disposed to make. It presupposes a past but is reiterated in the present by a tangible fact: consent, the clearly expressed desire to continue a common life.
If a majority of Catalans no longer consent to be part of the larger Spanish nation, then the specifics of the Spanish constitution are largely irrelevant. The people will force a change. Given that the younger generation favors independence, demography is on the side of the secessionists. The more polarized the situation becomes in Spain, the less room there will be for the sensible middle option of greater autonomy for Catalonia.
In the past, secessionist movements represented not a challenge to the nation-state system, but its ultimate expression. After all, rebellious provinces or peoples want nothing more than to become nation-states themselves. If every nation deserves a state, then how can the international community deny the Slovaks, the Slovenes, and the East Timorese? Secessionist movements were simply the continuation of a process interrupted by historical anomalies like the Soviet, Yugoslav, or Czechoslovak federations, or the often arbitrary border delineations of colonial administrators.
But the Catalan case suggests a different kind of future. In this future, economics, geopolitics, and technology all point toward what I’ve called in my latest book: the splinterlands.
Catalonia and the EU
The architects of the European Union imagined that their new entity would solve the challenge of endless division on the continent.
Europe has always been a patchwork of different peoples, all striving for sovereignty over their own territory. People of varying histories, cultures, languages, and religions have been mixed together in a way that has defied any easy drawing of borders. Order has usually come over the centuries by force of arms. In the last century, two world wars were fought to upend those orders, and a third war beckoned.
The EU was supposed to change all that by pointing toward something beyond the nation-state.
Not only did the EU weaken the powers of the state by appealing to the benefits of something larger — economies of scale, a unified foreign policy voice, greater individual freedoms to travel and work — it also appealed to a “Europe of regions.” According to this project, regions could deal directly with Brussels, bypassing their national governments, and also cooperate horizontally with one another: Provence with Basque country, Bavaria with Lombardy, and so on. Secession would be rendered moot, for Catalans could get what they wanted if not from Spain then from Brussels or other European entities.
Alas, it was not to be. Writes Anwen Elias back in 2008, “Regionalist or autonomist parties who saw in the EU an opportunity for organizing political authority on a post-sovereigntist basis were also forced to recognize that, in practice, Europe was still dominated by sovereign states and sovereignty-based understandings of politics.” Even in Europe, the nation-state held onto its privileged position. Attempts to revive the “Europe of regions” to accommodate pressures from below, particularly after the last Catalan referendum in 2014, came up hard against the growing Euroskeptical movements, the continued problems in the Eurozone, and ultimately Brexit.
The problem of consent, in other words, has infected the EU as well. Many citizens of wealthier European countries don’t want to subsidize the citizens of less-well-off countries. Europe-firsters have been unenthusiastic about the influx of immigrants that the EU as a whole embraced. Though others threatened to do so, the British have been the first to withdraw their consent entirely.
If the Catalans withdraw from Spain, they are also withdrawing from the EU, which would amount to a second defection in so many years. The decision could prove even more costly for Catalonia than Brexit is proving for the UK, since it doesn’t have an economy the size of England’s, hasn’t preserved a separate financial system (and currency), and doesn’t have the same international profile (for instance, Catalonia is not a member of the World Trade Organization).
Of course, would-be countries are often prepared to take an economic hit for the sake of independence.
But the Catalans have perhaps not factored in just how big a hit they’re going to take, naively thinking that the small bump up in revenues not turned over to Madrid will make the difference. They’re also disgusted, and rightly so, with the economic austerity measures that the EU has imposed on Spain. But little Catalonia will have even less power to resist these forces after independence.
Now that the “Europe of regions” has faded into irrelevance, Europe faces more fracture points. As a result of the Brexit vote, Scotland is once again reconsidering its commitment to the United Kingdom, though public opinion polls suggest that a second referendum on independence would fail by a narrow margin just like the first. In Belgium, the largest political force is a nationalist party, the New Flemish Alliance (N-VA), which supports Flemish independence. Of course, the Flemish are the majority in Belgium, and Flanders is doing much better economically these days than Wallonia, but Belgian unity remains a fragile thing. Other regions of Europe are also restive — Basque country, northern Italy, Corsica.
Although the Catalan vote isn’t likely to unravel the tapestry of Europe quite yet, other forces are at work in Europe — and not just Europe.
Kurdistan, Finally?
Kurds have wanted their own states for centuries. They’ve attempted to carve out autonomous regions in Turkey, Iran, and Syria. Last week, the Kurdish territory in Iraq held a non-binding referendum on independence, which garnered overwhelming support.
Surrounding states all took measures against the would-be new state of Kurdistan. Iran declared a fuel embargo, as did Turkey. Both countries moved troops to their borders for joint military exercises with Iraq. Secretary of State Rex Tillerson called the referendum “illegitimate.”
Baghdad, too, rejected the non-binding vote. But unlike Madrid, the Iraqi authorities did not attempt to stop the vote from happening. Iraq banned flights to Kurdistan airports and imposed sanctions on Kurdish banks. But it didn’t send in troops. The Kurdish government has announced new elections for November 1, and Baghdad seems to be waiting to see what the Kurds’ next move will be. Neither side wants war.
As in Catalonia, the referendum wasn’t simply a transparent bid for independence. Kurdish leader Massoud Barzani used the vote as a way to boost his own popularity and that of his party, as well as to make a stronger bid for Kirkuk, a disputed oil-rich area that Baghdad also claims. Regardless of Barzani’s motives, however, independence is clearly popular in Kurdistan.
Indeed, it’s hard to imagine the Kurds dialing back their ambitions in Iraq. They’ve been running a de facto state of sorts for years. They thought, not unreasonably, that they could trade their extraordinary efforts against the Islamic State for a shot at real, de jure sovereignty. They’ve even embraced a rather ruthless realpolitik to their ethnic brethren across the borders. Kurdistan has maintained strong ties toward Turkey — despite President Recep Tayyip Erdogan’s crackdown on Turkey’s own Kurdish population — and have been cool toward the de facto Kurdish state of Rojava in northern Syria.
But there’s still a huge difference between de facto and de jure. Just as Catalonia can be the string that unravels the European tapestry, Kurdistan can be the string that unravels the Middle East tapestry. Turkey, Iran, Syria, and Iraq all fiercely defend the unitary nature of their states, and the Kurds represent a strong threat to that structure.
Moreover, the region is as much of a patchwork as Europe. Yemen and Libya have already effectively fallen apart. Palestinians have been thwarted for decades from having their own state. Turkmen, Shia (in Saudi Arabia and Bahrain), and others might lobby as well for a piece of their own pie.
But what if they get their slice just when the pie has become stale and inedible?
Slouching toward Splinterlands
What’s happening in Europe and the Middle East is part of a larger pattern.
The global market has been eroding the power of the nation-state for several decades, as transnational corporations flit around the world to get the best tax deals and the cheapest labor, international trade deals remove key points of leverage that national governments once had over various economic actors, and global financial authorities impose conditions on all but the largest economies that governments must meet or face default.
The global market has delegitimized states. No wonder, then, that subnational units are taking advantage of this weakness.
Technology has amplified this trend. Communications advances make this global market possible, and the transfer in microseconds of huge amounts of capital in and out of nation-states renders national economic policy increasingly illusory. The Internet and social media have broken the monopoly on national media, providing civic movements (along with global disrupters like the United States and Russia) the means to challenge the once authoritative narratives of the nation-state. What happened in the Arab Spring to authoritarian governments is now happening to democratic governments as well (witness the Brexit vote and Donald Trump’s victory).
Finally, in the world of geopolitics, the overarching reasons for ideological unity are gone. The West no longer faces a “Communist threat,” while the East no longer huddles together against the “Yankee threat.” Sure, there’s the Islamic State and its ilk to worry about. But all nation-states see these non-state actors as a threat. The “war on terrorism” hasn’t forced states to give up a portion of their sovereignty for the cause — only citizens to give up a portion of their civil liberties.
In the 1950s and 1960s, utopians dreamed of a world government even as dystopians feared a global Big Brother. Today, when the international community can’t even come together to stop climate change, the prospect of world federalism seems impossibly quaint. A much grimmer reality presents itself in places like Libya and Somalia and Yemen: failed states and the war of all against all.
Today the world faces a crisis of the intermediate structure. The EU is under siege. The power of nation-states is eroding. If this trend continues, with the world continuing to splinter, the only entities left with any global power will be corporations and religious organizations, a world where frightened people pray to Facebook and the gods of Google that the fierce winds of nationalism and the rising waters of climate change and the random fire of lone gunmen will stay away for one more day.

Appetite for Destruction: Trump’s War on the Environment

JOSHUA FRANK

From the senseless slaughter in Las Vegas to the horrific impacts of Hurricane Maria on Puerto Rico, to Trump’s boisterous threats against North Korea and unfolding strife within the White House — it’s easy to get lost in the world’s madness and the nefarious mind of Prez Trump. It’s a dangerous vortex, no doubt, but Trump’s twitter storm and paper towel tossing photo ops are little more than a distraction from his administration’s unfettered assault on the environment.
This past week, Team Trump quietly denied protection for 25 species that are on the verge of extinction, including the Pacific walrus and black-backed woodpecker. The reason, of course, is that science doesn’t mean jack shit to the corporate barons ruling our government.
“Denying protection for these 25 species despite the imminent threat of climate change and ongoing habitat destruction is typical of the Trump administration’s head-in-the-sand approach,” said Noah Greenwald, endangered species director at the Center for Biological Diversity.
This is only Trump’s latest violation of our country’s endangered species. In June, Trump stripped protections for Yellowstone’s imperiled grizzly bear.
Under the noses of the environmental community, as Steve Horn and I recently reported, the Trump admin is also moving forward with new regulations that would allow certain liquid natural gas (LNG) exports in the US to skirt environmental reviews, a literal wet dream of America’s fracking empire. In many cases, Trump’s war on the environment and appetite for fossil fuels is shared by the so-called opposition in the Washington. The push for expediting LNG exports, for example, is largely spearheaded by former Clinton campaign employees.
Then there’s Trump’s overt destruction of the EPA, typically the last stopgap against environmental plunder. Indeed, Trump’s defanging the EPA is one campaign promise he’s managed to uphold. The EPA employs a mere 14,000 people, but Trump is doing his best to shrink that number substantially. Not only is there a current hiring freeze in place, it was reported last June that the EPA was planning to offer buyouts to more than 1,200 employees. Buyout is short for forced retirement. In September a wave of these forced retirements swept the EPA and at least 362 employees accepted Trump’s buyout last month.  The EPA hasn’t been this small and impotent since the Reagan era.
It’s all by design. Trump, with help from Congress, is hoping to slash the agency’s budget by 31% next year. EPA administrator Scott Pruit, who infamously denied the existence of climate change, is carrying out Trump’s mission to scrub all science from the EPA’s toolbox. But what’s better than banning science research at the agency? How about getting rid of the EPA altogether, one employee at a time. Sadly, Trump is carrying on with a trend President Obama set into motion. During his second term, the Obama admin paid more than $11 million to buyout 436 EPA employees. Shrinking the government is a bipartisan affair.
However, if Trump and Pruitt have their way, they’ll take Obama’s move a step further and scrap Superfund cleanup funds along with eliminating 50 other EPA programs. Also on the chopping block is the EPA’s Office of Environmental Justice, which works to protect our most environmentally impacted poor, minority communities.
Of course, we also have Trump signing an executive order to expand offshore drilling, wanting to back out of the Paris climate deal, as well as a push to open up oil exploration in ANWAR. He also hopes to scrap Obama’s climate regulations. And Trump, along with Secretary of the Interior Zinke, are working to reduce the size of nearly half of our National Monuments. To top it off they are also seeking to open these wild lands to oil and gas development. Nothing is sacred.
No doubt President Trump is a daily, almost hourly, train wreck — but his antics are coming at a very real cost to the environment and those species and people most impacted by its destruction.

Our Unique Planet Earth

 Peter Van Els

We’ve all done it at one point: look up at the stars and wonder about the meaning of it all. Is the universe infinite? Is there life on other planets? Is someone looking back at us, right now, somewhere out there in the inconceivable vastness of space? How small, how fragile must the world seem to him -,- Little more than a tiny speck of light.
It makes you realize how precious our planet is, this dust ball, this oasis in -the- vast barren -space-. Isn’t it wonderful that life exists on this insignificant rock, in -the- dark and empty void?
According to scientists, the universe came into existence with the Big Bang (13.7 billion years ago) and our Earth, together with our solar system, was formed some 4.56 billion years ago. The first humans appeared about 200,000 year ago.
Such a short period of life lives mankind here and the individual, You and I are .-here only momentarily.-
To me it is -natural- that there is other life and that the creation story and evolution go together, hand in hand, because what does one day mean in God’s name, when God or the Holy Spirit has been attended here from the beginning?
The complex structure of our magnificent planet, the incredible beauty and rarity of life, is both beautiful and frightening to behold. Had the primordial soup lacked but one ingredient, we wouldn’t be here. Brief though it may be, life – intelligent life – truly is a miracle. The realization is enough to make you. humble.
And yet, when we take an honest look at the intelligent life on this planet, ‘humble’ isn’t the first word than comes to mind. Far from it. Even though our brightest scientists continue to show us how fragile life is, how brittle and delicate the natural balance of nature, we continue to disregard it. We are displaying a pride and arrogance that is truly baffling.
Great Threats
Today, our Earth is being tormented by huge natural disasters, but its biggest disaster is undoubtedly mankind. We truly are our own biblical plague. In spite of gained wisdom and experience, we continue to be governed by megalomaniacs and narcissists. Shortsighted leaders, driven by greed and power, run this planet into the ground and persist in denying the disastrous effects we have on the Earth. In spite of overwhelming scientific evidence, President Donald Trump denies that climate change is caused by environmental pollution, caused by Man and his need for power.
Climate change now causes earthquakes, tsunamis, volcanic eruptions and hurricanes. The Polar icecaps are melting rapidly and we will have to take serious countermeasures to protect Earth from annihilation. Numerous animals, forests and plants are threatened by extinction and countless animals, forests and plants are extinct. And to think that the extinction of bees alone is enough to cause catastrophic environmental changes, affecting the entire ecosystem.
Everywhere there is corruption and fraud. The more power we gain, the higher our arrogance soars. Our intolerance for each other, and for each other’s beliefs, is staggering and disparaging. The resulting wars have brought us to the brink of destruction countless times, and yet we cannot seem to learn from the past.
Imminent mass destruction
Our propensity for self-destruction has never been more prevalent as in the recent past, with the advent of nuclear weapons. The Military Industrial Complex is ever-present, its many lobbyists seemingly having unlimited access to the world’s leaders. Escalation almost seems a matter of time.
Homo Sapiens belongs to the animal species, but there is a significant difference. Human beings have reason, kindness and the ability to learn and develop. I choose to believe that the majority of people are good, loving and selfless, and therefore there is hope. But what we need to do is rethink our priorities and open our eyes and look at the way we affect our planet.
Man is a social being. We need each other. We cannot survive alone. Together, we can evolve into a selfless creature, a loving person, and unto a higher consciousness. Let’s put our ability to change for the good into practice and convey the many talents that we have acquired as human beings. We have it within ourselves to open up to each other without losing our individuality.
The golden rule is simple: Do not do unto others what you would not have them do unto you.
When we learn to live by this rule, then there is the possibility for real change, in favor of our beloved, unique Planet Earth.

The Meaning Of The U.S. Constitution’s 2nd Amendment

 Eric Zuesse

The Second Amendment to the U.S. Constitution was written into the Bill of Rights and the Constitution in 1787 as the replacement-Constitution for this country, replacing the prior Articles of Confederation, which had bound the United States together as the nation’s first Constitution. We Americans live under America’s second Constitution, but the terms-of-reference in it are the same as for the document it replaced — the Articles of Confederation.
The 2nd Amendment to the U.S. Constitution is very brief, and states, in its entirety: “A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.”
The Articles of Confederation had said: “… every State shall always keep up a well-regulated and disciplined militia, sufficiently armed and accoutered, and shall provide and constantly have ready for use, in public stores, a due number of field pieces and tents, and a proper quantity of arms, ammunition and camp equipage.”
However, John Adams and others were disturbed to note that the “arms” in those “public stores” were insufficient; and, so, the drafters of the Constitution decided to allow the active members of each of any given state’s “well-regulated and disciplined militia” to use in his public official capacity within the militia, his own (privately held) “arms.” For example, Adams wrote to his wife, on 26 August 1777, “The militia are turning out with great alacrity both in Maryland and Pennsylvania. They are distressed for want of arms. Many have none, we shall rake and scrape enough to do Howe’s business, by favor of the Heaven.” What this meant regarding any possible foreign invaders who might want to invade and conquer the new nation, was dire for this new nation.
As the excellent Wikipedia article on this matter states: “A major concern of the various delegates during the constitutional debates over the Constitution and the Second Amendment to the Constitution revolved around the issue of transferring militia power held by the States (under the existing Articles of Confederation) to Federal control.”
The Second Amendment exists within that context — transferring, from purely local state-government control, to additional national U.S. government control, the existing, purely state-government “well-regulated and disciplined militia,” and doing it in such a way as to conscript, for this purpose, not only (as the Militia Act of 1792 was to express this matter formally) “each and every free able-bodied white male citizen of the respective States, resident therein, who is or shall be of age of eighteen years, and under the age of forty-five years (except as is herein after excepted)” but also those persons’ privately owned weaponry, or “arms.” The government was desperate for adequate armament, in order to be able to defend itself against any foreign invader, such as soon occurred in the War of 1812 when Britain invaded in order to re-subjugate the American people. And, the 2nd Amendment was therefore felt to be necessary, for those times.
Only government-controlled militias are referred to in the Second Amendment. This was a matter of protecting the government, not of providing self-appointed people the means with which to overthrow it. It was a matter of protecting democracy. Never were the militias private armies. Government control over them was always presumed when the term “militia” was being used in any legal sense. The NRA, Antonin Scalia, and others, have lied to deceive the American public to the contrary, but they all know the truth, because it’s right there, in the documents themselves, and stated very clearly.
My article “Las Vegas Massacre Proves 2nd Amendment Must Be Abolished” explains how it came to be that the liars have succeeded in changing the meaning of the Second Amendment so radically that, now, the “2nd Amendment Must Be Abolished.” What that sniper did in Las Vegas, on 1 October 2017, has transformed the American debate about “guns,” in such a fundamental way, so that, either the 2nd Amendment is to be repealed, “or else any entertainment-event or other event that attracts a mass of people, is an open invitation to anyone who wants to commit mass-murder — that the only access the law (the government) has in order to deal with such attacks is after-the-fact, once all of those murders and injuries have already been perpetrated. Nothing can be done in advance, so as to prevent any such attack.” Is a continuance of this situation tolerable to the American people? Or, instead, should the gun-question here now become: When is the 2nd Amendment to be repealed — how soon can it be done?
After that question becomes answered, the American people can begin to debate publicly the entire problem of identifying whom the deceivers had been, who had brought this nation to such a desperate situation, as this certainly now is. It can be a truth-and-reconciliation commission approach, or else a truth-and-punishment approach, but it will have to be done, in either case, so that this nation can move forward to a better future, no longer one that’s based on such horrendous lies, as have been perpetrated in this matter.
There can be no question, as to whether internationally the U.S. is extraordinary, or perhaps even unique, in its sufferance of such powerfully effective deceit, because the U.S. stands alone internationally, in its being in this situation. That, too, is proven clearly by the relevant evidence, which shows that the U.S. stands alone at the top among all nations in “Guns per 100 people”, and, also (except for the sole outlier, Mexico, which has both a relatively low gun-ownership and the world’s absolute highest “gun deaths per 100k people) has the world’s highest “Gun deaths per 100k people” (after the number-one and total outlier, Mexico).
Clearly, America’s liars, in this case, have loads of innocent blood on their hands. The question now is whether the victims, both of the lies, and of the resulting multitude of injuries and deaths, will strike back, by rejecting the lies, and the liars. The only way to start that process, is by passing a new (and remarkably brief) U.S. Constitutional Amendment (of which we’ve now got 27): “The 2nd Amendment is hereby repealed.” That would be the start, of a very constructive process: restoring American democracy.
The U.S. Supreme Court, in 2008, poisoned the 2nd Amendment; and, as a consequence, the archaic and perennially contentious 2nd Amendment must now be annulled, so as to cleanse the U.S. Constitution of that long-archaic and counter-productive, but now outright toxic, part.
It was already gangrenous.
Now it must be removed entirely.

The Face of Surveillance: Malcolm Turnbull’s Recognition Database

Binoy Kampmark

Never miss an opportunity in the security business.  A massacre in Las Vegas has sent its tremors through the establishments, and made its way across the Pacific into the corridors of Canberra and the Prime Minister’s office.  Australia’s Malcolm Turnbull is very keen to make hay out of blood, and has suggested another broadening of the security state: the creation of a national facial recognition data base.
It stands to reason.  Energy policy is in a state of free fall.  The government’s broadband network policy has proven disastrous, uneven, inefficient and costly. Australia is falling back in the ranks, a point that Turnbull dismisses as “rubbish statistics” (importantly showing that President Donald Trump is not the only purveyor of fanciful figures).
The Turnbull government is also in the electoral doldrums, struggling to keep up with a Labor opposition which has shown signs of breaking away into a canter.  The only thing keeping this government in scourers and saucepans is the prospect that Turnbull is the more popular choice of prime minister.
Enter, then, the prism of the national interest, the chances afforded to his political survival by the safety industrial complex.  Turnbull, a figure who, when in the law, stressed the importance of various liberties, is attempting to convince all the governments of Australia that terrorism suspects can be detained for periods of up to 14 days without charge.  Lazy law enforcement officials, rejoice.
Tagged to that agenda, one he wishes to run by the Council of Australian Governments (COAG) in Canberra, is the fanciful need for a national facial recognition database.  This dystopian fantasy of an information heavy, centralised database is one Australians have historically have opposed with admirable scepticism.  It has been something that Anglophone countries have tended to cast a disapproving look upon, a feature of a civilization suspicious of intrusions made by the executive.
In the 1980s, the Australia Card was suggested as an administrative measure of convenience, but deemed by critics to be the first steps in the creation of a national surveillance system that would stretch, extend, and ultimately enlarge the powers of the state.
As law academic Graham Greenleaf would argue in 1987, the Australia Card Bill 1986 would “go beyond being a mere identification system, which the Government claims it is, and will establish the most powerful location system in Australia, and a prototype data surveillance system.”
Had it been implemented, the card system would have applied to people of all ages, and, while not being compulsory, would have made it impossible, in Greenleaf’s sombre words, “for anyone to exist in Australian society without it”.  Receipt of pay would not have been taxed at the required rate; receiving health insurance and social security payments would have been impossible.
Importantly, the bill was rejected twice in the Australian senate, generating the grounds for a move by the Hawke government to take Australia to the polls.  It proved so unnerving to the senses of the public that the then prime minister quietly shelved it.  The civil libertarians had won.
Times have darkened.  In Australia, civil libertarianism is in quiet retreat, and the defenders of Big Brother chant with approval.  Security and fear are garlanded and worshipped.  Criticisms of the authoritarian bugbear are being treated with varying degrees of disdain and scorn.
Turnbull prefers to offer a chilling vision: “Imagine the power of being able to identify, to be looking out for and identify a person suspected in being involved in terrorist activities walking into an airport, walking into a sporting stadium.” It’s always good to imagine, to identify the citizen, to pretend that precision is the order of the day.
Concerns that this data base might be vulnerable to intrusive hacks and enterprising data pinchers is not a concern for the man in Canberra. This is the prime minister who presided over the creation of a data retention scheme on communications, a step deemed inimical in certain parts of the world to liberties (The European Court of Justice certainly thought so in 2016.)
“You can’t allow the risk of hacking to prevent you from doing everything to keep Australians safe”.  Safety is truly in the eye of the plodding beholder, and such a system risks entrenching a state of insecurity.
The operating rationale here is contempt for privacy, or that the Australian citizen could even care.  That’s the nub of Turnbull’s argument: the state is abolishing an undervalued, near irrelevant concept for the sake of security.  “I don’t know if you’ve checked your Facebook page lately,” he chided journalists on Wednesday, “but people put an enormous amount of their own data up in the public domain.” Yet another dangerous authoritarian argument for the books.
Over three decades have passed since the failure of the Australia Card. But Turnbull won’t be concerned.  The age of fear has been normalised, and those in the business of harnessing and marketing it see opportunities rather than concerns.  As Channel Nine’s Sonia Kruger, co-host of the cerebrally light Today Show Extra exclaimed: “I like it. I do.  Bring it on. Big Brother, bring it on.”

The Great October Revolution

Farooque Chowdhury

The Great October Revolution in Russia changed the world forever. Since November 7, 1917, a century, the world has ceased to be the same: the world is no more under absolute control of the world capital all the time, the world can’t be absolutely dictated by the world imperialism all the time, the world can’t be compelled to carry the yoke of exploitation all the time, remnants of old order don’t feel assured of its existence any more.
The world capital and the world imperialism never went unchallenged since November 7, 1917; and at times, many in numbers, it had to bow down unceremoniously. Since November 7, 1917, many times, the world witnessed labor’s victorious march forward on the world stage, on the stage of politics. Since November 7, 1917, the world labor achieved many advances in the history of humanity that no other class has ever achieved in terms of quantity and quality.

Conflict for liberation
About 12 years before the revolution Maxim Gorky mentioned a world-wide contradiction while discussing the developing revolution:
“The conflict against the mean oppression of poverty is a conflict for the liberation of the world from that net of coarse contradictions in which all men are fiercely and impotently struggling.” (“Letter on the Russian Revolution”, January 1, 1906, January 27, 1906, Justice)
The Great October Revolution was part of that “conflict against the mean oppression of poverty”, was part of that “conflict for the liberation of the world” as it shattered the system of oppression in Russia, and called upon all to rise against exploitation and oppression in respective lands.
Gorky pointed out the noble position the exploited hold, which is often missed:
“[Y]our weapon is the sharp sword of truth, that of your enemies the crooked needle of falsehood. Dazzled by the glitter of gold, they slavishly trust in its might, and do not perceive with what steadily increasing brightness burns the great ideal of the union of all men in one comrade-family of free workers. Socialism, the religion of liberty, equality and fraternity, is as unintelligible to them as is music to a man who is deaf and dumb, or poetry to an idiot. When they see the mighty march of the masses of the people toward freedom and light, dreading a disturbance of their peace, trembling for their position as lords of life, they hide the truth even from one another and console themselves with the spectral hope of defeating justice. They slanderously describe the proletariat as a dark mass of hungry beasts whose one desire is to gorge large quantities of food and who are ready for the sake of a good hunk of bread to destroy everything with which they cannot fill their maw.” (ibid.)
The noble position of the exploited consists of truth, union of all men, socialism, freedom, light and justice. The position does neither nourish nor patronize any supremacist, racist idea – a progressive position on a world-scale. It’s a humane dream, a humane aspiration. The revolution began materializing this dream, began realizing this aspiration.
While depicting the Russian reality and a course of development of the reality Gorky wrote:
“In Russia a revolution is bursting into flame, and they [enemies of the proletariat] slander utterly the Russian proletariat, representing the workman as a mere unconscious elemental force, a barbarous horde, ready to destroy, to wipe out completely all that exists, and incapable of creating anything but anarchy.” (ibid.)
The revolution’s class position is clear: Of the proletariat, of the working people, of the majority. Its political aim was unambiguous:
“The Russian proletariat is struggling consciously for the political freedom it urgently needs”. (ibid.)
No people can successfully organize struggle to radically re-organize economic system favorable to it without political freedom. The Russian proletariat unfurled the standard of political freedom, and organized the revolution to materialize the political aim, which showed the path to millions around the world.
Anti-people forces, forces of reaction regularly fail to fathom reality. The philosophy it uphold, the world view it use to look at developments create the failure. This happened in Russia. Gorky describes:
“‘The proletariat is beaten, the revolution is stamped out,’ shrieks our reactionary press in malignant delight. Such delight is premature. The proletariat is not beaten. Although it has suffered loss. The revolution is strengthened with new hopes and during these days its ranks have been immensely increased. The revolution has gained a great moral victory over the bourgeoisie”. (ibid.)
The Great October Revolution achieved moral victory over the bourgeoisie, its class enemy. And, moral victory is not gained through preaching of hatred, supremacy, and call for subduing all. Moral victory is not gained by not condemning the system of exploitation, by not condemning the exploitative property relations as exploitative property relations are permanent obstacle to the development of a humane society. The revolution practically showed this fact.
The revolution’s path was certain, which led Gorky to write:
“The Russian proletariat is marching towards certain victory, for in Russia it alone is spiritually strong, it alone has faith in itself, to it alone belongs the future.” (ibid.)
The revolution was not only limited to smashing the system of exploitation. It was wider. It was deeper. Gorky writes:
“[T]he Russian revolution is a cultural and constructive movement, the only movement capable of saving Russia from political dissolution. I declare that the bourgeoisie is impotent and incapable of constructive political work”. (ibid.)
Classes organizing a revolution for changes in political power and economic system are to rationalize its task by presenting evidence that its opposing classes are defending status quo, which is backward and impotent, is incapable to move to the path of progress. The proletariat in Russia successfully carried on this task.
Gorky, at the conclusion of his letter, echoed the proletariat’s position, which is free from all forms of sectarianism:
“Long live […] the proletariat as it goes forth to renew the whole world. Long live the working men of all lands who by the strength of their hands have built up the wealth of nations and are now laboring to create it new life! [….]
“[T]hey [the fighters and the workers of all lands] […] have faith in the victory of truth, the victory of justice! Long live humanity fraternally united in the great ideals of equality and freedom!” (ibid.)
The revolution began its journey to renew the whole world as it stood for fraternity among all peoples of all lands. It called upon all the toilers in all lands to unite trampling all forms of segregation. It stood for equality and freedom. This position made the revolution nobler than all noble revolutions. And, the proletariat in Russia organized this noble revolution that challenged all ideologies and practices based on exploitative property relations. This enabled the revolution to impact on a world-scale. The revolution became the yardstick: Which side you are on. (Pete Seeger)
A bold purge
The proclamations the revolution made and the actions it initiated since the moment it assumed power stand as evidence of its noble position: Cease all hostilities, fraternity among all peoples of and democratic peace to all lands, land to the tiller, liberate labor, bread for all. Decisive phase of the revolution began by opposing imperialist war – the World War I. It dethroned all exploitative forces while it ennobled the toilers. The constitutional and legal arrangements it made declared dominance of the working classes.
So, Lenin, on the fourth anniversary of the revolution, said: “And, we can justifiably pride ourselves on having carried out that purge [“destroy the survivals of medievalism”, “sweep them away completely”, “purge Russia of this barbarism”] with greater determination and much more rapidly, boldly and successfully, and, from the point of view of its effect on the masses, much more widely and deeply, than the great French Revolution over one hundred and twenty-five years ago. (“Fourth Anniversary of the October Revolution”, Collected Works, vol. 33, Progress Publishers, Moscow, erstwhile USSR, 1976)
Nikolai Bukharin cited the proletariat’s political power derived through the revolution:
“Our enemies, whoever they be, whether representatives of predatory imperialism, agents of the reformist internationals, representatives of the big bourgeoisie or landowners, or of the petty-bourgeois cliques, are all compelled to recognise the magnitude and significance of this historical fact that the working class has been in power for the space of ten years.
“Our November revolution stands at the threshold of a new world-historical epoch of humanity because it overturned and reversed the old social pyramid, putting in power the most oppressed, most exploited and, at the same time, most revolutionary class known to history, viz., the proletariat.” (“The World Revolution and the U.S.S.R.”, The Labour Monthly, vol. 9, no. 11, November 1927)
Revolutions and risings followed the Great October Revolution, which were cited by Bukharin: March, 1917 — the bourgeois democratic revolution in Russia; November, 1917 — the proletarian revolution in Russia; March, 1918 — the workers’ revolution in Finland; November, 1918 — revolution in Germany and in Austria; March, 1919 — revolution in Hungary; January, 1920 — revolution in Turkey; September, 1920 — revolutionary seizure of the factories by the workers of Italy; March, 1921 — the March “rising” in Germany; September, 1923 — revolution in Bulgaria; Autumn, 1923 — semi-revolution of the German proletariat; December, 1924 — the rising in Estonia; April, 1925 — the rising in Morocco; August, 1925 — the rising in Syria; May, 1926 — the General Strike in Britain; 1926 – the rising in Indonesia; 1927 — the rising in Vienna. He added: “[W]e must mention the Chinese revolution, continuing through many years, and now passing through an extremely acute phrase.” The Chinese revolution was identified by Bukharin as of “a factor of colossal significance”. In the colonized Indian sub-continent, the nascent labor was waging a series of battles against capital during those years. Thousands and thousands of industrial workers participated in waves of hundreds of strikes. The land witnessed: (1) at least one strike stopped an entire industry; (2) the labor’s  enthusiastic participation in a political strike at least in a city, and the labor carrying on a general strike in the city although its bourgeois leadership tried to keep away the labor from the political move; (3) an entire province coming to a standstill by a solidarity strike by workers from many branches of industries; (4) workers’ city-wide clashes with police and army in Kolkata, one of the largest cities in the sub-continent, twice. (Farooque Chowdhury, Upamahaadeshe Srameek Aandoloner Kaalpanjee (Notes on Labor Movement in the Indian Subcontinent), 2015) Latin America organized many revolts and struggles against imperialism. In the US, there was the Seattle General Strike, the first general strike in the country’s history, in February 1919 paralyzing the port city for six days. It was followed by massive strikes in the country’s steel, coal, and meatpacking industries and a dozen cities faced threat of civil unrest. The steel and coal strikes in 1919 in the US shook the country and showed the labor’s power. There was the Battle of Blair Mountain in 1921, the largest labor uprising in the US history and one of the largest, best-organized, and most well-armed labor risings since the American Civil War. For five days in late August and early September in Logan County, West Virginia, around 10,000 armed coal miners confronted 3,000 armed lawmen and strikebreakers. The battle was pushed down after intervention by the army. These, and innumerable labor/people-actions, ultimately political in nature/having political implication, around the globe were influenced/impacted/educated/encouraged by the Great October Revolution.
Bukharin inferred on the basis of the facts:
“[T]he international revolution is something actually in progress.” (ibid.)
There’s no reason to differ from the inference.
He argued:
“It is true that there has been no victory of the international revolution in the sense that there has been no simultaneous victory of the working class in a series of countries. But whoever predicted that the world revolution would occur in this way? It is extremely probable that immediate risings are imminent in the colonial subject countries, and, while they are not proletarian revolutions, they are yet component parts of the international revolutionary process. How can it be said that there is no such thing as the international revolution when there is the victorious Socialist revolution in the U.S.S.R., and while there is the Chinese revolution, both of which are parts of the world revolution.” (ibid.)
On international revolution, Bukharin’s further argument was:
“There are many people who picture to themselves the international revolution as an occurrence which some fine day will take place simultaneously in a number of countries. This is extremely improbable and unnecessary. Comrade Lenin, even during the war and before November, 1917, insisted that it was necessary for everyone to realise that the world revolution, which would overthrow capitalism, was primarily a protracted historical process, that we were on the eve of an epoch of world revolution which would contain a whole series of proletarian revolutions, colonial risings, and national wars, arising from the combination of all the factors breaking up capitalism.
“The international revolution is then an epoch of revolutions, a long extended process.” (ibid.)
To have a comparison, Bukharin mentioned the bourgeois revolutions: in the seventeenth century in England, in the eighteenth century in France, in the middle nineteenth century a series on the Continent of Europe, and in the twentieth century in Russia. “The process of revolutionary transition from feudalism to capitalism has occupied a number of centuries”, the fact he reminded, and the fact that many bourgeois scholars prefer to forget with the motive of belittling proletariat’s historic fights and gains.
The Great October Revolution showed path to uncountable strikes, general strikes and revolts of the working classes in bourgeois economies, and almost countless peasant risings, workers’ struggles and national liberation movements and armed struggles in colonies. Many of these struggles successfully compelled the world imperialism to retreat.
These changed the world scenario forever. It was a permanent change in world power equation, which had no scope, power and possibility to reverse its flight to the yester-position: a singular rein of capital. In the newly-emerged power equation, capital and imperialism never succeeded in ignoring the labor’s political power, it never felt free from presence of the labor’s political power; rather, contrarily, time and again it had to come into compromise with and appease the labor, it had to retreat despite setbacks in many areas the proletariat emerged victorious, despite sell outs and deviations by a part of labor leadership. The Great October Revolution initiated the new labor-capital political equation on the world scale.
The exposure & mistakes
The revolution exposed bourgeois democracy and imperialism with burning examples, and set example of people power, people’s participation and people’s democracy despite flaws in the initiative as the initiative was the first in human history, as the proletariat organizing the system had no experience on such a scale and with such power and responsibility spread over a vast land mass. In terms of length of time the proletariat began organizing the initiative, it was only a few decades. On the contrary, the bourgeoisie began the job of constructing its political system/arrangement centuries ago, and yet, it’s struggling with self to make it failure-proof, to make it flawless. What are the “achievements” of the bourgeoisie in this area in contemporary period? It successfully “failed to avert” the Nazism/Fascism; and to be factual, it generated, and it had to generate Nazism/Fascism. It didn’t fail to succeed in imposing neo-colonialism on countries. What’s the reality within the systems of its nobility – the advanced/matured bourgeois democracies? Has it succeeded in separation of power, accountability and transparency, which it propagates all the time? Hasn’t its executive branch already overwhelmed the rest of its governing machine – the legislature and judicial branches? Has it succeeded in making its system corruption-free? Doesn’t it rely on country- and society-wide surveillance? Doesn’t it rely on manipulating citizens? And, doesn’t it claim that its electoral system can be manipulated by another country in its system? It doesn’t even look into the meanings of the claim: (1) the manipulating country can manipulate electoral systems of all relatively weaker advanced bourgeois democracies; (2) the manipulated advanced bourgeois democracy is not the political system that reflects citizens’ opinion; and (3) the system is so much flawed after centuries of practices that it can be manipulated. Recent nasty politicking with natural disaster in one of the advanced bourgeois democracies, and the democracy’s unpreparedness to face such disasters despite having immense material and technical resources is a stark indication of the bourgeois head and heart, bear witness to betrayals to its taxpayers. The proletariat, through the Great October Revolution, stood above these hypocrisies, childish gossips, chicaneries, failures and betrayals. The juvenile literature – the values presented before the young learners – the proletariat produced in post-revolution Russia testifies importance the proletariat puts to the issue – future of humanity.
The proletariat’s revolution in Russia formulated laws and organized governing organs on the basis of new relations it was setting up after smashing down exploitative property relations. It was the proletariat’s one of the major achievements, which impacted many societies.
The Great October Revolution showed the proletariat’s intellectual, theoretical and organizational supremacy above the bourgeoisie. The supremacy got reflected in all practical areas of life: smashing death-clutches of hunger-ignorance, medieval practices and illiteracy-absence of shelter and health care-infrastructure and public places constructed/allotted favoring the exploiters-permanent plunder of public resources-denial of political space for public participation-use of science for making profit-culture defacing humanity and for profit making-distortion in human relations-parade by Nazism/Fascism. In this task the revolution had to bear burdens imposed by history. Hostile encirclement, subversion and wars were order of the days while the proletariat was reconstructing the society it was leading. Consequently, mistakes accompanied while organizing the strides within a shorter period of time. Lenin, the leader of the revolution, admits that the first victory of the revolution was “accompanied by a series of serious reverses and mistakes on our part. [….] We are not afraid to admit our mistakes and shall examine them dispassionately in order to learn how to correct them. [….] [W]e have sustained the greatest number of reverses and have made most mistakes.” (op. cit.) Then, he explains the circumstance leading to the mistakes: “How could anyone expect that a task so new to the world could be begun without reverses and without mistakes!” (ibid.)
However, mistakes don’t dismiss significance and achievements of any revolution. Then, how do the Great October Revolution’s significance and achievements get cancelled? Can its role in humanity’s journey to progress be denied? Shall not the denial be a part of denying humanity’s history? And, the part is the most revolutionary in human journey to make life humane. “[F]or the first time in hundreds and thousands of years the promise ‘to reply’ to war between the slave-owners by a revolution of the slaves directed against all the slave-owners has been completely fulfilled – is being fulfilled despite all difficulties.” (Lenin, op. cit., emphasis in the original) Shall denial of these facts help organize further steps forward, the need for which has turned out as essential and immediate? The call of the Great October Revolution, hence, is renewed and echoed all the time as the world still bears the scourge of exploitative property relations, as the world is being threatened and trampled by imperialism, as the world still bears archaic and medieval ideas, as the world humanity and labor are still made victim of divisive and sectarian politics.

Why Are Washington’s Allies Getting Cozy To Moscow?

Nauman Sadiq

Turkey, which has the second largest army in NATO, has been cooperating with Russia in Syria against Washington’s interests since last year and has recently placed an order for the Russian-made S-400 missile system.
Similarly, the Saudi King Salman, who is on a landmark state visit to Moscow, has signed several cooperation agreements with Kremlin and has also expressed his willingness to buy S-400 missile system.
Another traditional ally of Washington in the region, Pakistan, has agreed to build a 600 mega-watt power project with Moscow’s assistance, has bought Russian helicopters and defense equipment and has held joint military exercises with Kremlin.
All three countries have been steadfast US allies since the times of the Cold War, or rather, to put it bluntly, the political establishments of these countries have acted as virtual proxies of Washington in the region and had played an important role in the collapse of the former Soviet Union in 1991.
In order to understand the significance of relationship between Washington and Ankara, which is a NATO member, bear in mind that the United States has been conducting air strikes against targets in Syria from the Incirlik airbase and around fifty American B-61 hydrogen bombs have also been deployed there, whose safety became a matter of real concern during the failed July 2016 coup plot against the Erdogan administration; when the commander of the Incirlik airbase, General Bekir Ercan Van, along with nine other officers were arrested for supporting the coup; movement in and out of the base was denied, power supply was cut off and the security threat level was raised to the highest state of alert, according to a report by Eric Schlosser for the New Yorker.
Similarly, in order to grasp the nature of principal-agent relationship between the United States on the one hand and Saudi Arabia and Pakistan on the other, keep in mind that Washington used Gulf’s petro-dollars and Islamabad’s intelligence agencies to nurture jihadists against the former Soviet Union during the Cold War.
It is an irrefutable fact that the United States sponsors militants, but only for a limited period of time in order to achieve certain policy objectives. For instance: the United States nurtured the Afghan jihadists during the Cold War against the former Soviet Union from 1979 to 1988, but after the signing of the Geneva Accords and consequent withdrawal of Soviet troops from Afghanistan, the United States withdrew its support to the Afghan jihadists.
Similarly, the United States lent its support to the militants during the Libyan and Syrian civil wars, but after achieving the policy objectives of toppling the Arab nationalist Gaddafi regime in Libya and weakening the anti-Israel Assad regime in Syria, the United States relinquished its blanket support to the militants and eventually declared a war against a faction of Sunni militants battling the Syrian government, the Islamic State, when the latter transgressed its mandate in Syria and dared to occupy Mosul and Anbar in Iraq in early 2014.
The United States regional allies in the Middle East, however, are not as subtle and experienced in Machiavellian geopolitics. Under the misconception that alliances and enmities in international politics are permanent, the Middle Eastern autocrats keep on pursuing the same belligerent policy indefinitely as laid down by the hawks in Washington for a brief period of time in order to achieve certain strategic objectives.
For example: the security establishment of Pakistan kept pursuing the policy of training and arming the Afghan and Kashmiri jihadists throughout the eighties and nineties and right up to September 2001, even after the United States withdrew its support to the jihadists’ cause in Afghanistan during the nineties after the collapse of its erstwhile archrival, the Soviet Union.
Similarly, the Muslim Brotherhood-led government of Turkey has made the same mistake of lending indiscriminate support to the Syrian militants even after the United States partial reversal of policy in Syria and the declaration of war against the Islamic State in August 2014 in order to placate the international public opinion when the graphic images and videos of Islamic State’s brutality surfaced on the social media.
Keeping up appearances in order to maintain the façade of justice and morality is indispensable in international politics and the Western powers strictly abide by this code of conduct. Their medieval client states in the Middle East, however, are not as experienced and they often keep on pursuing the same militarist policies of training and arming the militants against their regional rivals, which are untenable in the long run in a world where pacifism has generally been accepted as one of the fundamental axioms of the modern worldview.
Regarding the recent cooperation between Moscow and Ankara in the Syrian civil war, although the proximate cause of this détente seems to be the attempted coup plot against the Erdogan administration in July last year by the supporters of the US-based preacher, Fethullah Gulen, but this surprising development also sheds light on the deeper divisions between the United States and Turkey over their respective Syria policy.
After the United States reversal of “regime change” policy in Syria in August 2014 when the Islamic State overran Mosul and Anbar in Iraq in early 2014 and threatened the capital of another steadfast American ally, Masoud Barzani’s Erbil in the oil-rich Iraqi Kurdistan, Washington has made the Kurds the centerpiece of its policy in Syria and Iraq.
Bear in mind that the conflict in Syria and Iraq is actually a three-way conflict between the Sunni Arabs, the Shi’a Arabs and the Sunni Kurds. Although after the declaration of war against a faction of Sunni Arab militants, the Islamic State, Washington has also lent its support to the Shi’a-led government in Iraq, but the Shi’a Arabs of Iraq are not the trustworthy allies of the United States because they are under the influence of Iran.
Therefore, Washington was left with no other choice than to make the Kurds the centerpiece of its policy in Syria and Iraq after a group of Sunni Arab jihadists transgressed its mandate in Syria and overran Mosul and Anbar in Iraq in early 2014 from where the United States had withdrawn its troops only a couple of years ago in December 2011.
The US-backed Syrian Democratic Forces, which are on the verge of liberating the Islamic State’s de facto capital, Raqqa, and are currently battling the jihadist group in a small pocket of the city between the stadium and a hospital, are nothing more than the Kurdish militias with a symbolic presence of mercenary Arab tribesmen in order to make them appear more representative and inclusive in outlook.
As far as the regional parties to the Syrian civil war are concerned, Saudi Arabia, Jordan and the rest of the Gulf Arab States may not have serious reservations against this close cooperation between the United States and the Kurds in Syria and Iraq, because the Gulf Arab States tend to look at the regional conflicts from the lens of the Iranian Shi’a threat.
Turkey, on the other hand, has been more wary of the separatist Kurdish tendencies in its southeast than the Iranian Shi’a threat, and particularly now after the Kurds have held a referendum for independence in Iraq despite the international pressure against such an ill-advised move.
Finally, any radical departure from the longstanding policy of providing unequivocal support to Washington’s policy in the region by the political establishment of Turkey since the times of Mustafa Kemal Ataturk is highly unlikely. But after this perfidy by Washington of lending its support to the Kurds against the Turkish proxies in Syria, it is quite plausible that the Muslim Brotherhood-led government in Turkey might try to strike a balance in its relations with the Cold War-era rivals.

Australian economy “going into a hole”

Nick Beams

Concerns are mounting that the Australian economy is about to end its record-breaking run of 26 years without a recession and that such an occurrence could trigger financial turbulence because of the rise of debt.
On Thursday, Australian Bureau of Statistics (ABS) retail sales data recorded their largest two-month decline for seven years, in a sign families are cutting back spending in conditions of stagnant or falling real wages.
Sales fell by 0.6 percent in August, following a 0.2 percent decline in July, after predictions they would show a 0.3 gain. The August fall was the largest since March 2013. The two-month decline was the most severe since late 2010 and the first two-month back-to-back fall in almost five years.
With consumer spending accounting for around 60 percent of Australian gross domestic product (GDP), there are fears over what the fall signifies for the broader economy. Since the end of the mining boom, growth has been sustained to a considerable extent by the inflation of house prices.
Commenting on the sales data, former chief economist at the ANX bank Warren Hogan said: “We’ve got this declining trend accelerating. If this is not ‘statistical,’ if this is not a sampling error, then this is the sort of dynamic you’d see in an economy that is going into a hole.”
Reporting on the latest Morgan Stanley AlphaWise survey findings, Business Insider Australia noted: “Australian households are in a vulnerable financial position, especially those who have taken out a mortgage. And in an era of weak incomes growth, soaring energy prices and high levels of indebtedness, with the prospect of higher interest rates on the way, many intend to cut discretionary spending in anticipation of even tighter household budgets.”
In a note released this week, Morgan Stanley wrote: “In early June, we expressed the view that the Australian consumer faces a domestic cash flow and credit crunch.”
Income growth, the note commented, has not recovered, cost of living inflation was accelerating and the tightening by the banks on loans for mortgage borrowings was extending into consumer finance.
Morgan Stanley’s warnings are based on a survey it conducted in late July and early August to try to identify the financial position of households.
“Most households have minimal buffers against a shock to their income, and expect to respond to higher debt servicing costs by drawing down on savings and cutting back on expenditure,” it said.
Morgan Stanley noted that while other sectors of the economy may be able to offset some of the weakness in the economy, “the concentrated exposure of the household sector and economy to an extended housing market is posing an increasingly important structural and cyclical risk to consumer spending.”
The worsening position of the Australian economy has caught the attention of the international financial press. Two major articles published by the news service Bloomberg this week both pointed to the risks posed by extraordinarily high debt levels.
An article by Michael Heath observed that while mining profits fuelled riches for the stakeholders, they did little for the vast majority living in the cities. Wages were barely growing, households carry some of the world’s biggest debt loads and productivity gains in the economy had petered out.
Jeremy Lawson, chief economist at Aberdeen Standard Investments in Edinburgh, and a former Reserve Bank economist, commented: “Now that we don’t have the benefit of the mining boom, there’s nothing really that replaces it in terms of driving economic activity.”
The Bloomberg article noted that household debt in Australia is at a record high of 194 percent of income, compared with 104 percent in the US.
An article by financial analyst Satyajit Das began: “Australia’s record of 26 years without a recession flatters to deceive. The gaudy numbers mask serious flaws in the country’s economic model.” It was too dependent, Das wrote, on “houses and holes”—minerals that come out of the ground and at other times relying on low interest rates to boost house prices which prop up economic activity.
“Yet a significant portion of housing activity is speculative. Going by measures such as price-to-rent or price-to-disposable income, Australia’s property market looks substantially over valued,” Das concluded.
Among young workers and families, home ownership has fallen to the lowest levels on record as house prices have risen by 140 percent in the past 15 years. Sydney, where the median price for a house is over $1 million, is now ranked as one of the top two housing markets in the world and Melbourne is now the sixth most expensive city in which to buy a house.
Das noted there was a growing Australian “debt bomb.”
“Australia’s total non-financial debt is over 250 percent of GDP, up around 50 percent since 2010. Household debt is currently over 120 percent of GDP, among the highest proportions in the world.” The ratio of household debt to income (194 percent) had increased five-fold since the 1980s.
“Stagnant real incomes have contributed to the problem as have high home prices and the associated mortgage debt. Despite record-low interest rates, around 12 percent of income is now devoted to servicing all this debt. That’s a third more than in 1989–90, when interest rates neared 20 percent.”
Das pointed to the broader implications of the high debt levels, warning they increased the risk of a banking crisis sparked by rising losses on real estate loans. Australia was especially vulnerable “because of its dependence on foreign capital; foreign debt tops 50 percent of GDP, much of it borrowed by banks to cover the shortfall between loans and domestic deposits.”
Despite the official claims that Australia managed to weather the 2008 financial crisis because of its supposedly better managed financial system, that vulnerability was exposed in October 2008 when foreign funding for Australian banks dried up literally overnight. Had that continued the banks would have become bankrupt. The crisis was only alleviated when the Rudd Labor government stepped in to act as the banks’ guarantor.
Reflecting the views of the financial elites and corporate chiefs, the two authors bemoan the “toxic” Australian political culture, which has seen a succession of prime ministers in the past ten years—each lasting around two years—saying this had prevented economic “reform.”
In the inverted lexicon of present-day finance capital, “reform” no longer means an improvement in social and economic conditions for the population. Rather, it signifies deeper attacks on wages, jobs and social services, combined with tax cuts for the corporations and the wealthy to boost the bottom line at the expense of the working class.
Like their American counterparts, who seized on the 2008 crisis to drive through such “reforms” in the US economy, sections of the Australian elites are looking to a major economic and financial crisis to do the same.
The former banker Jeremy Lawson told Bloomberg: “Crisis begets reform in Australia.” When the crisis comes, he added, “you’re forced to make much more significant adjustments at the time.”