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Capitalism
Cooperative
Capitalism
___________________________________________________
A Blueprint for
Global Peace and
Prosperity
2nd Edtion
Expanded and Updated
_________________
J.W. Smith
Copyright © 2005 by J.W. Smith
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Table of Contents
INTRODUCTION 1
Personal Property Rights, Community Property Rights, and Private
Property Rights 2
A Very Short History on the Few Claiming the Rights of the Many 3
Subtle-Monopolization is a Remnant of Feudal Exclusive Property Rights 9
SECTION A 17
INTERNAL TRADE 17
WASTED WEALTH THAT THE DEVELOPING WORLD
MUST AVOID 17
1. HENRY GEORGE’S CONCEPT OF AN EFFICIENT
MODERN LAND COMMONS 18
2. THE EFFICIENCY OF A MODERN TECHNOLOGY
COMMONS THROUGH APPLYING HENRY GEORGE’S
PRINCIPLE OF CONDITIONAL TITLES TO NATURE’S
WEALTH 21
3. THE EFFICIENCY OF A MODERN MONEY
COMMONS 23
Creating a Constant-Value Currency 28
4. SUBSIDIARY SUBTLE MONOPOLIES WITHIN THE
PRIMARY MONOPOLIES OF LAND, TECHNOLOGY AND
MONEY 32
5. RECLAIMING THE INFORMATION COMMONS 37
Eliminating Political Corruption by the Wealthy and Powerful 39
A Modern Communication Commons converts wasted Time to Free Time 39
An unseen and unfelt Money Transaction Tax 40
That Population can be stabilized without Coercion has been proven 41
SECTION B 43
EXTERNAL TRADE 43
A PEACEFUL AND PROSPEROUS WORLD 43
6. REFOCUSING ECONOMIC THOUGHT 44
Fair and Equal Trade as opposed to Unequal “Free” Trade 45
Plunder-by-Trade has a Long History 46
Never did a Nation develop under Adam Smith Free Trade 48
True Freedom, is based on Economic Freedom 51
America chose not to Support the World’s Break for Freedom 53
History supports Friedrich List, not Adam Smith 56
7. HOW A “FREE” PEOPLE WITH A “FREE” PRESS ARE
PROPAGANDIZED 59
The CIA’s Mighty Wurlitzer Suppressing the World’s break for Freedom 60
Corporate-Funded Think-Tanks Backed the CIA’s Mighty Wurlitzer 63
vi
Academia and the Media cannot escape an established Social-Control-
Paradigm (Framework of Orientation) 66
Death Squads: Rising Democratic Leaders must be eliminated 68
Strategies-of-Tension (“Framework of Orientation”) Controlling a “Free
Press” and a “free” Nation 69
The World was Breaking Free 71
Controlling Elections in the shattered Empires of Europe and Asia 73
Destabilizing Dissenting Political Groups 75
Professors, Intellectuals, and the Masses are locked into Protecting Empire 81
A Few of the Many Mighty Wurlitzers in History 82
8. THE PERIPHERY OF EMPIRE COULD NOT BE
PERMITTED THEIR FREEDOM 89
The Korean War: A Strategy-of-Tension for Worldwide Suppression of
Breaks for Freedom 101
9. A LARGE SEGMENT OF THE WORLD ALMOST
BROKE FREE 109
The Soviet Union could not recover from the Disaster of World War II 111
The Cold War Warped the Soviet Economy 112
The Fear was losing Control of Resources and the Wealth-Producing-
Process 113
The Fiction of Western Efforts to rebuild Russia 118
The Plan was to take the Soviet Union Out 119
Afghanistan, the Final Straw that Collapsed the Soviet Union 121
The ‘Official’ Enemy is now Terrorism 123
10. A VIABLE YUGOSLAVIA COULD NOT BE
PERMITTED 127
The CIA’s Mighty Wurlitzer Turned Reality on its Head 130
The Reality the Mighty Wurlitzer was Hiding 131
The Wealth moves to the Powerful West 133
The Huge Gains to Imperial-Centers-of-Capital 136
Financial and Economic Warfare 137
Getting Indigestion Assimilating New Allies 142
Allied Imperial-Centers-of-Capital Gaining Wealth 144
11. THE IMF/WORLD BANK/GATT/NAFTA/WTO/
MAI/GATS/FTAA MILITARY COLOSSUS 153
More Financial Warfare 159
The Economic Insanity of Capital Destroying Capital 163
Practicing Economic Policies Opposite that Imposed Upon the Undeveloped
World 165
Sincerely Sharing the Wealth-Producing-Process 167
12. CONCLUSION: DEMOCRATIC-COOPERATIVE-
(SUPEREFFICIENT)-CAPITALISM 175
Powerful Nations will not willingly give up Their Superior Rights 179
These are Historic Moments 182
Restructuring to an efficient Internal Economy 183
vii
Democratic-Cooperative-(Superefficient)-Capitalism, Restructuring all
Societies to a Life of Peace & Leisure 183
viii
Acknowledgments
I wish to thank the many great authors and reporters cited who have laid
out reality so clearly. Without their dedication to truth, there would have
been no way to find one’s way through the maze of misinformation.
Petr Kropotkin had to flee for his life when he exposed European
aristocracy in much the same way as this work exposes our financial and
corporate aristocracy today. I trust I will not have to flee.
Friedrich List was jailed for his exposure of the fraud of Britain
promoting free trade. Every nation that successfully developed did so
following the guidelines laid down in his classic written in 1883, rhetoric
that they developed under Adam Smith free trade notwithstanding. I trust I
will not go to jail for exposing the same fraud which is being imposed upon
the world today.
Ralph Borsodi’s insights were crucial for understanding money. Later
authors whose insights into current events were invaluable to me are:
Michel Chossudovsky, Jared Israel, William Blum, Sally Covington, Jared
Diamond, James Fallows, Jeff Faux, William Greider, Susan George, Sean
Gervasi, Michael Kettle, Philip Knightley, Mark Lane, Christopher Layne,
John Loftus, Arjun Makhijani, Milton Mayer, Ralph McGehee, William
McNeill, Seymour Melman, Yousai Mohammad, George Monbiot, Michael
Parenti, L. Fletcher Prouty, Ellen Schrecker, John Stockwell, Lester
Thurow, and William Appleman Williams. There are many more, too
numerous to mention, and I thank them also.
Ray Miklas and Pete Gannon (stuffguys.com) kept my computers
running. Special thanks go to Anup Shah, Bernie Maopolski, William
Kötke, John Bunzl, and Jeff and Diana Jewell. All worked hard for its
timely release. Special thanks go to Mieczyslaw Dobija’s research on money
originating as an accounting unit of productive labor.
Special mention must be made of Mochamad Effendi Aboed of
Indonesia and Feisal Mansoor and Jeanne Thwaites of Sri Lanka. Professor
Andrej Grubacic of Yugoslavia, Professor Radh Achuthan, Professor
Michael Rivage-Seul, Cosmas Bahali of Tanganyika, Daniel Blackman,
Chairman of the Economic Empowerment Initiative of the National Youth
Center, and reporter Dmitry Yanovich from Belarus are valuable members
of our team.
I owe a deep debt to Professor Robert Blain of the Southern Illinois
University, Professor Glen T. Martin of International Philosophers for
Peace, and Professor Walter Davis of Kent State University.
Marie Gunther, http://4thefixbooks.com, brought all this together. I
sincerely thank all for their input. I alone remain responsible for any errors
that remain.
ix
Acronyms
Central Intelligence Agency (CIA)
Coordinating Committee for Multilateral Export Controls (Cocom)
Counterintelligence Program (COINTELPRO)
European Community (EC)
Federal Bureau of Investigation (FBI)
Free Trade Area of the Americas (FTAA)
General Agreement on Trades and Tariffs (GATT)
General Agreement on Trades in Services (GATS)
German Central Intelligence Agency (BND)
Gross National Product (GNP)
International Monetary Fund (IMF)
Kosovo Liberation Army (KLA)
Military Professional Resources (MPRI)
Most Favored Nation (MFN)
Multilateral Agreement on Investments (MAI)
Multilateral Trading Organization (MTO)
National Agreement on Free Trade of the Americas (NAFTA)
National Endowment for Democracy, (NED)
National Security Council Directive (NSC, NSD)
National Union for Total Independence (UNITA)
NATO Alliance High Representatives to Bosnia-Herzegovina (HR)
North Atlantic Treaty Alliance (NATO)
Organization for Economic Cooperation and Development (OECD)
Office of Strategic Studies (OSS)
Organization of Oil Exporting Countries (OPEC)
Partnership for Peace (PfP)
Popular Movement for the Liberation of Angola (MPLA)
Proto-Indo-Europeans (PIE)
Quadrilateral Group of Trade Ministers (QUAD)
Regional alliance of Eastern provinces of former Soviet Union (GUUAM)
Seven leading Western Countries (G7)
Socialist Workers Party (SWP)
Special Operations Command (SOCOM)
World Trade Organization (WTO)
x
Cooperative
Capitalism
xi
Michael Hudson and Baruch Levine’s Privatization in the Near East and
Classical World traces the ebb and flow of “privatization” through 5,000
years of history eventually developing into the “Western” system of
exclusive property rights.
We ask the reader to pay close attention to our description of today’s
residual-feudal exclusive property titles that are direct descendants of
aristocratic, monopoly, exclusive property rights. Note Henry George’s
concept for changing exclusive title to nature’s resources, put on this earth
for everybody, to conditional title (though he did not use the word
conditional) converts that property back to a commons but in modern
form. Eliminating those monopolies protects honest property rights,
increases competition, and, assuming productive jobs are shared, increases
economic efficiency possibly equal to the invention of money, the printing
press, and electricity. Democratic-cooperative capitalism is superefficient capitalism.
Each gain of rights for the dispossessed has been touted by a power
structure, and normally accepted by the masses, to be full rights. Obviously
the power structure has had enough control of the universities and media
for centuries to maintain that thought control. This control has been in
place for so long that we are all part of it and are unaware of that fact. Nor are
many aware that one function of the massive military of powerful nations is
to impose the current monopoly structure on the rest of the world.
Run an Internet search using the key words “Christian, libraries,
burned.” This will alert you that both Western and African cultures were
advanced to a high educational level with substantial libraries. It will show
that, over a period of 300 years, those libraries and culture centers were
destroyed, the educated were killed or forced underground, and thus the
“civilized” world dropped into the 700 years of the Dark Ages.
In the destroyed Library of Alexandria had been a working steam
engine and an artifact found in the Middle East dating to those early
periods was determined could only have been a battery. This means forces
within society destroying its own culture delayed the onset of the Industrial
Revolution (phones, trains, cars, planes, and TV sets) 1,200 years.
We know that a few millennia ago China had a large iron industry,
rotary drills, mechanical seeders, an ocean plying navy, and that this
technically sophisticated society too regressed into peasant poverty.
The 300-year destruction of the civilization of Rome appears to be, and
is, massive. But each event would have been an occasional, and largely
unknown, massacre in some far corner of the empire. Are not occasional
suppressions and massacres throughout the 20th century, in all parts of
then-current, and today’s, empires an accurate description of today’s world?
Contact us if you can add to this picture. Thank you. The Institute for
Economic Democracy support group. (www.ied.info/, cc@ccus.info,
ied@ied.info).
Introduction 1
Introduction
Superior rights for the few and inferior rights for many are structured into
the subtle monopolization of land, technology, and money; all produced by
nature or social technology and properly belonging to all. The unearned
wealth from the subtle monopolization of those enclosed commons both
reduces the efficiency of an economy and lowers the share of wealth for
others. Having been born and raised within the current residual-feudal
exclusive title legal structure and taught with sincerity—by those who learned
those fables right in the university that this is the most efficient economy—
we are unaware that these highly inefficient subtle monopolies even exist.
Society is a machine to produce and distribute the needs of the people.
All inventions are a part of nature and thus a part of a natural commons.
Privatizing this natural wealth has seriously reduced economic efficiency
that we are taught otherwise notwithstanding. All wealth is processed from
scarce resources those resources are on or under the earth so land was the
first commons to be privatized.a Restructuring to a modern land commons
and ensuring each person the right to their piece of land would greatly
increase economic efficiency while protecting earned private property rights
even more thoroughly than the current subtle-monopoly system.
Technology is a part of nature and a common heritage to all waiting to
be discovered and used. Both economic efficiency and rewards to inventors
have been lowered by privatizing technology through the current residual-
feudal exclusive patent structure. The claiming of rights to the communication
spectrums by corporations is a great example of the continued structuring
of inequality into law through privatizing what is the common heritage of
all. There was a massive gain in rights by a few subtle monopolists, a loss of
common usage of the TV and radio airways for the masses, and a huge loss
a Real wealth is produced by combining resources, capital (both industrial and financial), and
labor. It has been proven that labor anywhere in the world can be trained to run modern
factories so there is a large surplus of labor. We will learn below that both technological and
financial capital were historically kept scarce through subtle-monopolization but will be
plentiful in a modern commons. This leaves availability of resources as the primary limitation
on the production of wealth.
2 Economic Democracy: The Political Struggle of the 21st Century
a
Witness corporations currently successfully structuring into law a denial of the public to
super cheap community Wi-Fi connections which would reduce phone and Internet
connection service by possibly 80%. The fast developing Skype free phone service may
derail those communication monopolies before all those laws can be put in place.
Introduction 3
Personal property rights are properly total and unfettered rights to that
produced with one’s own labor or that produced by another person’s labor
purchased with one’s honest earnings. This includes personal possessions,
homes, machinery, most industries, and all consumer products.
Community property rights are that produced by nature and which
sustains all life. This includes land and resources on, above, and beneath the
earth. Air, water, timber, oil, coal, iron, copper, communication spectrums,
and the genes of all plants and animals which are all properly common
property to be used by all. No person produced any one of these items and
all are essential to life.
Claiming exclusive private property rights to air and water may appear
to have social efficiency advantages while there is a surplus. A scarcity of
such fruits of nature, however, would likely mean impoverishment or even
death for those excluded through exclusive titles. Thus, in times of scarcity,
community rights should supercede private property rights and that is
recognized in Western law.
But the rights of all stakeholders to the fruits of nature are not
recognized in residual-feudal exclusive private property titles. With only
occasional exceptions, the rights of the community are ignored in titles to
nature’s wealth. Throughout this book we will be addressing how under
Henry George’s concept of conditional title (though he may not have used
that term) to nature’s wealth (land and the resources on and under the land)
all will have rights to their share of this great wealth and it is far more
socially and economically efficient than residual-feudal, exclusive subtle
monopoly titles.
Periodically a researcher of economic history will run into the fable “The
Tragedy of the Commons.” This fable uses the example of pastures used in
common to prove this was an inefficient legal and social structure. Each
farmer has rights to pasture his cattle. To earn more money, self interest
dictates that some will turn more cattle onto that pasture than their
allotment. The pasture is overgrazed, the soil erodes, and all will lose.
This author has experience with pastures used in common and the
truth is the opposite of the fable. During the Great Depression, bankrupt
ranchers on the prairies of the West were occasionally organized into
“grazing districts” which are lands grazed in common. The fable ignores
that those ranchers have equal rights, none have superior rights. Each has
an allotted number of cattle they can pasture, and any excess cattle will be
confiscated. The result: private land with residual-feudal exclusive private
ownership is typically overgrazed as ranchers maximize their income by
mining the topsoil through overgrazing while the soils of the commons
under conditional title, those grazing districts, are conserved.
Where did that fable come from? Just as corporations today fund think-
tanks to pour out social control beliefs that protect their wealth and powera,
the fable of the “Tragedy of the Commons” and other such social-control
paradigms (Eric Fromm’s “frameworks of orientation”) were promoted by the
powerful centuries ago to justify the reduction of others rights and the
increase in their rights through the privatization of the commons.
The three centuries of the establishment of the British enclosure acts is
only one of many examples of structuring inequality of rights into law
through enclosure of the commons. We will be discussing how insurance,
aJ.W. Smith, Economic Democracy: The Political Struggle of the Twenty-First Century, expanded and
updated 4th edition (www.ied.info/: The Institute for Economic Democracy, 2003), Chapter
6. We researched in depth how democratic societies were controlled for the masses to
accept policies which, in final analysis, were against their best interest.
Introduction 5
law, health care, and information are also a natural commons that have
been privatized in that centuries-long process of providing excessive rights
to the powerful through structuring inequality into law.
The powerful throughout the past centuries not only claimed an
excessive share of the wealth of nature which was properly shared by all
within the community, through the unequal trades of mercantilism they
claimed an excessive share of the wealth on the periphery of their trading
empires. Adam Smith describes mercantilism for us:
[Mercantilism’s] ultimate object.... is always the same, to enrich the country
[city or state] by an advantageous balance of trade. It discourages the
exportation of the materials of manufacture [tools and raw material], and the
instruments of trade, in order to give our own workmen an advantage, and to
enable them to undersell those of other nations [cities] in all foreign markets:
and by restraining, in this manner, the exportation of a few commodities of
no great price, it proposes to occasion a much greater and more valuable
exportation of others. It encourages the importation of the materials of
manufacture, in order that our own people may be enabled to work them up
more cheaply, and thereby prevent a greater and more valuable importation of
the manufactured commodities.3
economy with our later research on the waste through covertly and
militarily monopolizing world trade. The only way the world can be
developed to a sustainable level is if the wastes of subtle monopolization,
both in internal trade and external trade, are avoided. a
The United States of America, founded on the great ideals of freedom of
speech, freedom of thought, freedom of movement, and freedom from
oppression, is a great country. This author cherishes those values as much
as anyone else and believes firmly that the current war against terrorism
must be waged.b But that war must be fought through granting full rights
and equality to all the world’s citizens not by military power. The immense
gains in economic efficiencies through full equality and rights for all people
under democratic-cooperative-(superefficient)-capitalism speak for themselves.
Once a society has attained full equality and full rights for all, class
differences will largely disappear. But society will not be the dull sameness
propagandists have taught us to believe. Groups of people are not innately
superior to others. Individuals within all groups have thousands of varied
talents both innate and developed. With both family and community
support, talents and individuality can blossom and flourish. Within reason,
each person’s potential will be maximized.
Certainly there are great individual achievements under individualism.
These achievements were pursued relentlessly but what is ignored is that
they were, one way or another, given great community support. Unnoticed
are the talents that have remained undeveloped because of the limitations of
support for most in highly individualized societies. Under the enormous
efficiencies and supports of democratic-cooperative-(superefficient)-capitalism,
people and society will develop and blossom as never before.
b As the anthrax used in the anthrax scare immediately after 9/11 was DNA-traced
to the CIA’s Fort Deitrich labs almost certainly that was a CIA strategy-of-tension to
create more fear in the American people to further justify the War on Terror. This
brings into serious question on the claims that Al Queda is the extensive worldwide
organization as claimed. When one understands strategies-of-tension to justify foreign
policies one realizes that Muslim terrorists may be much smaller in number and
weaker than we are being told
Introduction 9
a Juliet B. Schor, Overworked American, (New York: Basic Books, 1991), p. 2. Social studies
textbooks still mentioned the potential of short working hours as late as the 1950s and the
concept is again becoming fashionable.
Introduction 11
The gain in rights in America spilled back into Europe. The short-lived
French Revolution promising full rights to all was overthrown but, to
prevent more revolutions, those in power released some land rights and,
over the next 150 years, unemployment insurance, social security and other
rights were granted to the common people of Europe. To prevent a ballot
box revolution during the Great Depression of the 1930s, Social Security,
unemployment benefits, and other rights were granted to Americans.
During that crisis the same threat again faced Europe and almost all
governments were turned over to Fascists to prevent a voters’ revolution.a
A ballot box revolution did occur in Spain. The powerful were voted
out but Fascists took that government back by force (1936-1939). That
externally-orchestrated overthrow of a true democracy was improperly
named in history as the Spanish Revolution. After WWII, the powerbrokers
faced the prospect of the world taking the rhetoric of democracy seriously
and breaking free. The process of denying those rights to most required
imperial centers giving rights to nations on the periphery essential for allies
and the immense expenditure of money on the Cold War gave buying
power and the appearance of more rights to almost all labor in those imperial
centers.
As the common people fought for equal rights, and did gain, the
power-structure protected itself by trumpeting each partial gain of rights as
full and equal rights. But the residual-feudal exclusive rights of capital
promoted by classical economists have never been fully set aside and full
and equal rights as promoted by a minority of philosophers has never been
attained. It is this lack of full rights which creates the poverty and violence
of today’s world.
Providing equal rights through Henry George’s suggested slight
changes in the structure of residual-feudal exclusive titles to nature’s wealth
would eliminate the current unacknowledged subtle land, technology, and
money monopolies that are the essence of today’s economy. At minimum
cost and without waste use-values would be distributed to all. The quality of
life will rise rapidly even as the hours of required labor and the GDP drops
possibly 50 percent. The drop in GDP, even as quality of life rises,
measures the previously wasted labor, capital, and resources of a subtly-
monopolized, residual-feudal, economy. The GDP then rises as people utilize
their new free time for family interactions, to develop their many artistic
talents, or to simply socialize with friends.
Under a modern commons within democratic-cooperative-(superefficient)-
capitalism, the just rights of private property are fully protected,
individualism and competition are strengthened, and money no longer
flows through those subtle monopolies to the interceptors of wealth.
aAn attempt to turn America’s government over to fascism at the same time was made but
General Smedley Butler refused to head the overthrow and exposed their plot. Smedley D.
Butler, War is a Racket (Los Angeles: Feral House, 2003)
Introduction 13
federated world, the federation of the entire world is the route to equal
access to resources and a quality life for all.
The first five chapters condense the concept of distribution through
unnecessary labor which is the central theses of The World’s Wasted Wealth
and The World’s Wasted Wealth 2. Later chapters borrow heavily from
Economic Democracy: The Political Struggle of the 21st-Century. The thesis of a
modern commons and residual-feudal exclusive title to nature’s wealth in this
manuscript developed so much strength that we inserted those concepts
into WHY? The Deeper History Behind the September 11, 2001 Terrorist Attack on
America and later editions of Economic Democracy to give those readers the
benefit of those thoughts. However, each book has its own focus which
gains strength when built upon the central theses in our magnum opus,
Economic Democracy. We trust our readers will bear with us on the
duplications.
We highly recommend picking keywords, key people and countries off
these pages and run Google/Nexus-Lexus Internet searches. One will be
surprised at what has been missed in the news and history books and each
search only takes minutes. With normally hidden history right at the
reader’s fingertips, in a few years authors will insert only a few citations. A
search for alternative views on subjects on the evening news will be a great
education.
The title of John Perkins’ book, Confessions of an Economic HitMan (2004),
alerts us that this is a must read. Finally, one of the managers of state
defected and eposes the heart of the beast; our analysis was right on target.
Michael Hudson’s Super Imperialism: The Origin and Fundamentals of U.S.
World Dominance, giving a point by point description of how financial
warfare and economic warfare are waged, is also crucial.
Likewise Sheldon Rampton and John Stauber’s Banana Republicans: How
the Right Wing is Turning America into a One-Party State. These authors explain
how once a week the hard right pass out crucial talking points to their radio
talk shows, to news outlets they control, and to key government officials.
The essence of those talking points flow out of those news outlets
simultaneously building an “echo chamber” which imprints upon the
American mind a view of the world that protects their excessive rights.
Michael Hudson and Baruch A. Levine’s Privatization in the Ancient Near
East and Classical World addresses the 5,000 years of the ebb and flow of
privatization. We outline how, in one stroke, Henry George’s conversion of
exclusive titles to natures wealth to conditional titles restores those original
commons in modern form and is the answer for full and equal rights with a
quality life for all.
Introduction 15
Notes
1 Petr Kropotkin, Mutual Aid (Boston: Porter Sargent, 1914), Chapters 6-8, especially p. 225.
2 Ibid, especially p. 226. See also Renard, Guilds of the Middle Ages, p. 66 and Chapters 7-8;
Adam Smith, Wealth of Nations, pp. 523-626, 713; Immanuel Wallerstein, The Modern World
System, (New York: Academic Press, Inc., 1974), vol. 2, pp. 5, 37, 245, vol. 3, p. 137.
3 Adam Smith, The Wealth of Nations (New York: Random House, 1965), p. 607.
4 William Appleman Williams, Contours of American History (New York: Academic Press Inc.,
1974, p. 41.
5 “Necessity Test is Mother of GATS Intervention” The Observer (April 15, 2001). See also:
John McMurtry, “The FTAA and the WTO: The Meta-Program for Global Corporate
Rule,” Economic Reform (April, 2001).
6 Schor, The Overworked American, chs. 1. & 3; Peter Drucker, The New Realities (New York:
Harper and Row, 1989) p. 123; Roy Morrison, We Build the Road as We Travel
(Philadelphia: New Society Publishers, 1991), p. 221; Lester Thurow, Head to Head: The
Coming Economic Battle Among Japan, Europe, and America (New York: William Morrow and
Company Inc., 1992), p. 53; Lester Thurow, “Investing in America’s Future,” Economic
Policy Institute, C-Span transcript (Oct. 21, 1991): p. 9; Kevin Phillips, Boiling Point (New
York: Random House, 1993), p. 24; Walter Russell Mead, “After Hegemony,” New
Perspective Quarterly (1987), quoted in “As Reagan Crumbles,” p. 14.
7 Michael Perelman, The Invention of Capitalism: Classical Political Economy and the Secret History of
Primitive Accumulation (London: Duke University Press, 2000), especially p. 91: Thomas C.
Patterson, Inventing Western Civilization (New York: Monthly Review Press, 1997).
8 Perelman, The Invention of Capitalism, Chapter 3.
16 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
17
Section A
Internal Trade
Michael Hudson and Baruch L. Levine (Privatization in the Ancient Near East
and Classical World) trace the 5,000-year history of privatization of nature’s
wealth. Henry George’s concepts of restructuring those exclusive titles to
conditional titles has, in one stroke, retained the claimed efficiencies of
privatization (private property, individualism, competition) even as it
restores (in modern form) the commons that was the original economic
structure for every people on earth. We will be applying Henry George’s
principles to elimination of land, technology, finance, and communications
monopolies.
Land is social wealth. It was not created by labor, we all require land to
live and everyone should have full and equal rights to space on this earth.
Those full and equal rights can be obtained by a simple change in residual-
feudal exclusive land titles—society should collect the landrent. A nation’s
landrent, currently collected by subtle land monopolists under laws of their
own design, is adequate, once that change is made, to pay all normal costs
of government.a Residual-feudal exclusive land monopolization and sales and
a Mason Gaffney and Fred Harrison, The Corruption of Economics: With The Development of
Democracy, Mind Control Became the Urgent Need: Neo-Classical Economics Was the Tool (London:
Shepheard-Walwyn, 1994), p. 183. Social Security, Railroad Retirement, Federal Employees
Retirement, unemployment insurance, Medicare, and Medicaid, are—at this time—all
improperly labeled as government expenses; they are actually paid-for insurance funds
separate from expenses of running governments.
19
income taxes disappear as use values are distributed instantly and without
cost.a
With society collecting the landrent, the price of land drops to zero
while its use-value actually increases and the economy becomes more
efficient. The payment of that landrent is, at first look, only slightly less
costly than purchasing that land under the current residual-feudal exclusive
titles. But a second look takes into consideration the elimination of all other
taxes which, on balance, returns the price of land to zero. All would then
have access to land at no net cost due to landrent replacing all other taxes.
That tax cannot be evaded and the collection system is already in place.
Each person or business would then pay their share of the costs of
government. All will have access to land for a home and true producers
would be able to start a business with only the capital necessary to buy
buildings, machinery, and inventory. These are easy to finance while the
purchasing of subtly-monopolized land is very difficult to finance.
Most talented accountants, federal tax agents, a substantial number of
lawyers, their support staff, as well as all who built and serviced their offices
and equipment would now be available for productive work. Product prices
would drop as sales and income taxes and their accounting costs disappear.
All this would be gained with no increase in costs to the true producer
(subtle monopolists are—without realizing it—interceptors of wealth, not
true producers). Landrent taxes would be paid out of cash flow instead of
being deducted from net income. Society’s collecting of the landrent is a
bargain for hard working and talented productive people.
With subtle monopolization eliminated, the most efficient farmers can
pay the highest landrent, so the most efficient farmers will own their farms.
The most efficient industries will own their required land because they can
pay the highest landrent. The most efficient businesses will own their
required land because they too can pay the greater landrent. And all citizens
will have rights to the land under their homes at no initial cost and, again
considering the elimination of sales and income taxes, no net cost. The
annual landrent cost will appear only slightly smaller than subtle-monopoly
rent but it is fully offset by other taxes disappearing so it is far cheaper:
Oil, copper, iron ore, and the like, while still in the ground, are land and can
very properly be privately owned so long as society is paid the landrent. The
world has adequate reserves of most of these minerals. It is only richer
a This is a summary of our chapter on Henry George, J.W. Smith, Economic Democracy: The
Political struggle of the Twenty-First Century, expanded and updated 4th edition (www.ied.info/:
The Institute for Economic Democracy, 2003), Chapter 24; Henry George, Progress and
Poverty (New York: Robert Schalkenbach Foundation, 1981).
Henry George’s Progress and Poverty, published in 1879, is the classic on this subject. We
recommend reading that deeper study. All his works and many authors writing on him are
available from the Robert Schalkenbach Foundation, 41 East 72nd St., NY, NY 10021 (212-
988-1680), established for the purpose of keeping Henry George’s philosophy alive. For up-
to-date listserve info contact Alanna Hartzok earthrts@pa.net..
20 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
deposits and cheaper labor in developing world countries that make their
minerals more available. Under Adam Smith unequal free market philosophy,
the developed world's more expensive deposits are not mined until the undeveloped world's
cheap deposits are exhausted. Ecological taxes or surcharges on rich mineral
deposits to equalize production costs between developed regions with their
expensive mineral deposits and the developing world and their cheap minerals
... is really landrent.1
Landowners invested their money honestly and they should not be forced
to shoulder the cost of a change in tax structure which changes residual-feudal
exclusive property rights, eliminates monopoly profits, and thus changes
monetized values. Homeowners and business will be instantly compensated
through the elimination of other taxes. Farmers, large landowners,
landlords, and others only partially compensated can be made whole
through bonds up to the value of their loss. Retirement funds would
expand to compensate retirees.
Buying power is badly needed in a depression. Bonds could then be
issued to compensate for the loss of residual-feudal exclusive property rights.
1 J.W. Smith, Economic Democracy: The Political Struggle of the Twenty-First Century expanded and
updated 3rd edition (www.ied.info/: The Institute for Economic Democracy, 2003), Chapter
25.
21
a J.W. Smith, Economic Democracy: The Political Struggle of the 21st Century, updated and expanded
4th edition, Chapter 26 addresses the history of money and an honest country, regional, and
world banking system in depth. All subjects addressed in this book are highly abbreviated.
For the full story, we encourage the reader to read those 430 pages.
b To understand the enormous power the dollar has at this time over other nations’ currencies
and America’s fear of those nations trading in their own or other currencies read W. Clark,
“The Real Reason for the ongoing War with Iraq, http://www.ratical.org/ratville/CAH/
RRiraqWar.html
24 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
multiplier as that money circulates within the economy, provide the value to
back the money created.
That primary-created money productively spent circulates within the
economy (the economic multiplier creating more money [circulation-created
money]) and energizes more production. If that first primary-created money
is insufficient for a fully functioning economy, more money should be
created and added to the circulating money to build banks, businesses and
stores. The new values created back both the primary-created and
circulation-created money.
A modern economy requires electric power stations, roads, sewer
systems, water systems, et al. In step with the ability of industrial
production to produce products to soak up the region’s new buying power,
more money must be created to build social infrastructure. To the extent
that infrastructure is built with primary-created money, there is no debt.
When money is understood, an increase or decrease in its primary creation
can fine-tune an economy to the maximum capacity of resources and labor.
Economists can easily calculate any surplus buying power that may
occasionally develop and increased reserve requirements (of banker or
borrower) and quickly soak up that surplus. As a region develops, money
creation, both primary and circulation created, will have to be within the
capacity of the earth to recycle wastes and to protect resources, and
environment for future generations
All banks should be required, as now, to keep a percentage of their
deposits with the central bank. When the economy needs more money, the
central bank increases the loan capital of needy banks by recording an
increase in those banks central bank deposits (an interest bearing loan). As
only an increased accounting entry was made and there was no deduction
entered from another account; that is primary-created money.
Assuming the reserve requirement is 10%, those banks could loan out
nine times (900%) the increase in their reserves. That 9-times increase,
deducted from one account and added to another account at each point in
its circulation, is circulation-created money. By increasing or decreasing
reserve requirements, a central bank can precisely control the creation, or
destruction, of money.
Bankers will have to be knowledgeable about, and loan appropriately
for, community needs. Needs of regions and communities should be
calculated and each region and each community should have equal rights to
both savings and created money. These would be community banks
servicing a community and a region, their loyalty would not be to
shareholder profits. They would not be banks siphoning savings from the
farthest reaches of a nation to financial centers maximizing profits through
monopolization and speculation. Through increasing or decreasing interest
rates on productive capital investments or for consumer credit, as well as
increasing or decreasing reserve requirements, an economy can be balanced.
The Efficiency of a Modern Money Commons 25
a The almost unnoticeable transaction tax on the circulation of money would be very
practical for funding a capital accumulation fund. This tax has been studied by the
Congressional Research Service of the Library of Congress and found feasible.
Tax lawyer John A. Newman proposed this transaction tax on the circulation of money to
the American Congress in 1988 and Paul Bottis (http://www.taxmoney-notpeople.com –
http://www.madashellclub.com) is continually proposing it to the American Congress today.
26 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
For maximum care for all its citizens, regional directors would be umpires
overseeing their region’s financial rights, while local directors would oversee
state, county, and community funding rights. A minimum housing standard
could be set and that goal reached as could goals for roads, parks, schools,
and public buildings.
With infrared thermogram images of palm, artery, vein, eye pattern, and
signature scanning confirming identity, local credit unions, an integral part
of the banking system, would issue consumer credit much as credit cards do
now but at a fraction the interest rates.
Working on a bill to submit to the Eighth Session of the Provisional
World Parliament, Professor Glen Martin of Radford University expanded
upon the Biblical and Koranic principles that it is wrong to charge interest.
As money and banking are social technologies understood for thousands of
years and ownership is only proper for items built by one’s labor or
purchased with funds earned by one’s labor, and money and banking
systems are neither, this is a logical social-legal structure.
What caught professor Martin’s attention was, if properly structured,
the elimination of the waste of monopolies and the attaining of full and
equal rights through sharing the remaining productive jobs (each working
only 2-to-3 days per week) equalized the earnings of all and thus did away
with the huge accumulations of money formerly appropriated by those
monopolies.
With the disappearance of those huge blocks of appropriated wealth
and the equalization of pay for equally productive work, the need for paying
interest disappears. Beyond application, accounting, and brick and mortar
costs, well under 1% of loan values, there was no one producing anything
through either mental or physical labor so no one would be entitled to
“earnings” of 6%-to-24% interest on loan values.
The Efficiency of a Modern Money Commons 27
the bank-of-issue I am calling for on the magnitude this would make possible,
it would stabilize prices to such a degree that stabilization as a serious
problem would disappear. Stabilization would make speculation peripheral
instead of central in the determination of the prices of basic commodities of
the world.2
Instead of 10% of its funds sitting idle, a bank (or the Central Bank where
those reserves are deposited) should purchase a broad range of commodity
contracts and hold them as reserves. The values of the world’s commodities
now back the value of that trading currency. With risk eliminated,
international traders will write contracts in, and accept and make payments
in, that constant-value currency. Those bankers, now also commodity
traders, would do no speculating. They would only sell contracts
approaching delivery dates and purchase new contracts. Once established,
incoming and outgoing money will balance as commodity contracts are
bought and sold.
With world travelers and world traders flocking to commodity-backed
constant-value currency, other nations would quickly back their currencies
with commodity contracts. To not do so would risk traders abandoning
their currency. Thus any nation or region establishing commodity-backed
money will force the world’s central banks to tie their currencies to the
value of commodities. The “national character of currencies would be of no
consequence, since they would be but different tokens representing the
same commodities.... We will have Gresham’s law operating in reverse;
good money will be driving bad money out of circulation.”3
Commodity speculation will disappear and the percentage of a nation’s
currency invested in commodities will lower as other nations’ reserves are
invested. All trades will match equal-value currency transfers, speculation in
currency will disappear, and all contracts will equal the value of all
commodities in the field, in transit, and in storage. On balance, each
currency would be valued and backed by its nation’s production.a
With commodity-backed, equal-value currency widely used, countries
would have to use their currency creating powers productively. Debasing
their currency by printing money for nonproductive purposes would be
producing no value and their currency would immediately be discounted in
the markets. With a currency securely tied to the value of a broad basket of
commodities, external powers could not siphon away the wealth of weak
nations through discounting their currency and thus deflating its value:
With stable constant values, individuals not using those commodities or
currencies in their businesses would no longer borrow society’s finance capital
to speculate in commodity markets, nor would they do so with their own
cash. Protected by constant-value money backed by the world’s commodities,
a.Inflation and deflation can also be eliminated, and thus a stable value currency created, by
indexing wages and contracts to the price changes of a broad basket of commodities.
30 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
By tying money to commodities one has only gained a part of full trade
rights. Equality in commodity trades requires weak countries being equally
paid for their labor and resources. When equally and fully paid—and
assuming quality management, access to markets, access to technology, et
al.—poor nations can immediately start accumulating wealth.
Eventually money can also be valued against a basket of consumer
products or a combination of commodities and consumer products. As the
value of both money and commodities fall together, there can be no
economic collapses. But if a crisis creates shortages across the board,
money values must decrease.
Once the labor of all nations are roughly equally paid and subtle
monopolization of land, technology, and finance capital are eliminated,
money will be a measure of productive labor value.a
Once the waste of wars, waste of capital destroying perfectly good
capital, and waste of labor and capital of subtle monopolies are eliminated,
a modern economy will function with less than half the current workforce.
Sharing productive jobs would reduce the workweek to some 2-to-3 days
per week.
Once tied to the value of a broad basket of commodities, money will
have been returned to a modern commons for common use by everybody.
Once subtle monopolization has been eliminated, the value of commodities
will be equal to the value of the labor that produced them. Money would
then represent the value of productive labor just as it did when evolving
from clay tablet accounting in Sumer over 5,000 years ago.b
a One will search books on money in vain for the simple fact that money originated as what
it should be, a measure of productive labor value. Once society advanced from money as a
symbol of labor value to money as a medium of exchange, most of the sense of true value
which money properly represents was lost. An honest banking system returns money to its
original meaning, a measure of productive labor value. Miezyslaw Dobija and Martyna Sliwa,
“Money as an Intellectual Adventure,” pages 131-85, especially p. 135 in Stefan Kwiatkowski
and Charles Stowe’s Knowledge Café for Intellectual Product and Intellectual capital (Warsaw, Poland:
Leon Kozminski, 2001).
b Through preventing, on average, surpluses in commodities or consumer products,
commodity backed money will prevent economic crashes. But, if shortages occur, there will
be an increase in price which means a lowering of the value of money. Community oversight
maintaining a balance between resources and consumption will be necessary.
The Efficiency of a Modern Money Commons 31
1 Smith, Economic Democracy, updated and expanded 3rd edition, Chapter 26.
2 Ralph Borsodi, Inflation (Great Barrington, MA: E.F. Schumacher Society, 1989), p. 73.
3 Ibid, p. 8.
4 Smith, Economic Democracy, updated and expanded 3rd edition, Chapter 26.
32 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a The waste within the subtly-monopolized capitalist economy has been documented in
classics by Benjamin Franklin and Charles Fourier 200 years ago, in the early part of the 20th
century by the classics of Thorstein Veblen, Upton Sinclair, Stuart Chase, and Ralph
Borsodi. Later authors were Bertrand Russell, Juliet Schor, and Seymour Melman. Those
works and others are cited in this author’s The World’s Wasted Wealth 2 which documents this
waste of labor and resources in even greater detail. This chapter is a summary of Part I of
that book.
Subsidiary Subtle Monopolies Within Primary Monopolies 33
diabetes, most heart attacks, and many other illnesses. That correction of
faulty science alone will eliminate well over 50% of illnesses in those who
follow Dr. Atkins principles for good health.
Agriculture. Free food is enormously expensive. At first it would appear
that giving millions of tons of cheap American grain to the impoverished
world is very generous. However, both cheap and even free imported food
can be one of the greatest disasters to befall a country. This can be quickly
proven:
Where would Western business and labor be if a powerful nation exported
food to it below the price of local production? Their farmers would go
bankrupt, the tractor and machinery companies would go bankrupt, the
millions of people depending on these jobs would be without work,
production of remaining industries would have to be sold to other societies to
pay the import food bill, and the West would quickly become impoverished.1
Frances Moore Lappé points out that "More than a third of annual U.S.
government spending, an estimated $448-billion, consists of direct and
indirect subsidies for corporations and wealthy individuals, in direct
violation of free-market principles."2 Free grain from highly-subsidized U.S.
farms poured into the Ukraine after the Soviet collapse. Ukrainian farmers
could not sell their grain for enough to pay costs so they quit planting. That
breadbasket of the former Soviet federation became hungry and the entire
region became dependent upon the world for food handouts. As buying
power had been destroyed, this can only have been equally as devastating to
all other industries in the Ukraine:
Exporting food may be profitable for the exporting country, but when their
land is capable of producing adequate food, it is a disaster to the importing
countries. [Note that many of the poor nations today are rich in natural
resources and arable land.] American farmers would certainly riot if 60% of
their markets were taken over by another country. Not only would the
farmers suffer, but the entire economy would be severely affected.
Imported food is not as cheap as it appears. If the money expended on
imports had been spent within the local economy, it would have multiplied
several times as it moved through the economy contracting local labor (the
economic multiplier).... This moving of money through an economy is why
there is so much wealth in a high-wage manufacturing and exporting country
and so little within a low-wage country that is "dependent" on consumer
imports. With centuries of mercantilist experience, developed societies
understand this well.... [S]ubsidies, tariffs and other trade policies eliminate the
comparative advantage of other regions to maintain healthy economies in the
developed world.... The result of these First World subsidies [for export] are
shattered developing world economies.3
her products and services to the farmers uses their income to purchase
what is produced by the labor of others in the country or region. The
economic multiplier, through balanced production within a country or
region, creates a healthy, wealthy economy. When a country imports food
or any other product, and there are insufficient compensating exports of
equally high value (meaning both high value-added products and the labor
that produced them were equally paid), that country becomes poorer, not
richer. Zambia had 40 small industries producing clothes for Zambians. A
flood of used clothes from America undersold those producers, the
multiplier factor went into reverse, and the number of impoverished
Zambians rose rapidly. What appeared as a generous donation by the
exporting country became a big loss for the importing country.
Homemakers. Elimination of the wasted labor of a subtly-monopolized
wealth-producing-process will lower the workweek to 2-to-3 days per week. This
will permit a husband and wife to share both home chores and a job or one
can work five days while the other cares for the home.
Education. Only 5% of America’s communication capacity (fiber-optic
lines and satellites) is being utilized. Alert professors and teachers are aware
that taping the lectures of the finest teachers and broadcasting them over
TV channels reserved for education would free them for other productive
work.
Listening to several lecturers, students will gain a much broader
education. With lectures subject to challenge, the massive misinformation
currently in the soft sciences (economics, political science, some sociology,
and yes history) will largely disappear.
The elimination of that misinformation alone will provide a higher
quality education in less time. The greatest gains will be the elimination of
the brick and mortar schools, the entire economic structure (teachers,
janitors, builders, suppliers, school buses, et al.) which supports them, and
society’s remaining productive jobs shared with these highly qualified
citizens.
With each citizen working only 2-to-3 days per week, a parent will be
home to oversee their children’s leaning. So long as a student maintained a
certain grade average, a share of the money society saved on maintaining
the present brick and mortar school system could be paid to each child’s
family up to the age of 18. Allowing for each child’s ability, that incentive
would be paid for each subject and, on an average, for all subjects. With
spending money earned for each subject, students would zip through those
classes.
Through those financial and emotional rewards earned at a central
testing facility, children will quickly take responsibility for their own
education. The brightest will obtain a 12th grade education in as little as
eight years and even the slowest, but teachable, will do so in less than
twelve.
Subsidiary Subtle Monopolies Within Primary Monopolies 35
Notes
1 Smith, Economic Democracy, updated and expanded 3rd edition, Chapter 13. To understand the
theft of weak nations’ agriculture wealth even as cheap food is poured into their country
read Vandana Shiva’s Stolen Harvest: The Hyjacking of the Global Food Supply (Cambridge: South
End Press, 2000).
2 Frances Moore Lappé, World Hunger: Twelve Myths (New York: Grove Press: 1998), p. 98;
Ousseynu Gueye, “Let African Farmers Compete,” World Press Review (October 2002), p. 12.
3 J.W. Smith, The World's Wasted Wealth 2, (www.ied.info/: The Institute for Economic
Democracy, 1994), pp. 66-67. See also Bhagirath Lal Das, WTO: The Doha Agenda: The
New Negotiations on World Trade (London: Zed Books, 2003) and his many other books.
Reclaiming the Information Commons 37
a
Wi-Fi (wireless fidelity) is at this time handling Internet connections, phone calls, radio, TV, and
movies. With 10-times the capacity at 10% the cost (or 1% the above calculations), within a generation,
phone and cable companies will be history.
Communication monopolies know all this and, through their pressure, states are denying
communities the right to establish super cheap community Wi-Fi. Yet Skype, other enterprising
providers, and enterprising communities are making endruns around those monopolies faster than they
can put the laws in place and when all this hits the courts surely the ruling will be that monopolization is
illegal and citizens are entitled to the over 90% savings of a truly free market.
China, Finland, and other progressive countries have Wi-Fi installed nationwide with all the
savings as outlined here. Developing countries are witness to the enormous savings possible and the
installation costs are so low relative to land lines they will soon be Wi-Fi wired. A shakeup of the entire
economies of the developed world is in the making.
38 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a A full reading of this author’s work will alert one that the economy of the United States
today is over 50% distribution by unnecessary labor. A democratic-cooperative capitalist
society we are outlining would have large amounts of free time. Parents could spend many of
those free hours working with their children and advance them even faster than we outline.
Reclaiming the Information Commons 39
Section B
External Trade
aWe invite all with a talent for econometric formulas to expand upon this simple math to
prove the errors in neo-liberal formulas. We would like to publish quality books through this
Refocusing Economic Thought 45
cooperative capitalism project. If you do not write your own book, we would be pleased to
place powerful formulas created at the end of key chapters with full acknowledgment.
46 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
to the countryside for wool, food, timber, et al. But it did not take the
countryside long to copy that simple technology and produce their own
cloth, leather, and metal products.
The comparative advantage of the countryside of having both the raw
materials and the technology meant impoverishment for any city that
formerly produced those products. Superior military force eliminated the
comparative advantages of the outlying villages and enforced their
dependency upon the city. Through monopolizing the wealth-producing-process
by superior military power, the city laid claim to both the natural wealth of
the countryside and the wealth produced by technology. From that obscure
beginning, throughout history the powerful and crafty continually
restructured property rights to transfer all wealth (above production costs)
produced on, or with, that property to themselves.
The powerful face the same problem today. To maintain the standard
of living of their citizens and their wealth and power, powerful nations lay
claim to the wealth of weak nations through inequalities in world trade. One
becomes a popular leader by protecting and increasing the well-being of
ones followers. But any sincere economic proposal to better the lot of
impoverished nations would instantly and correctly be seen by all in an
imperial-center-of-capital as an immediate loss to themselves. (This is true only
under the current subtle-monopoly structure but is not true under democratic-
cooperative-(superefficient)-capitalism.)
Thus for a leader to propose a sincere economic policy for the
periphery is rare. Reality requires leaders to take care of their own even as
millions—or even billions—of people on the periphery are impoverished
by economic, financial, covert, and overt warfare, their Grand Strategy to
contain any economic consolidation that would compete for world
resources and control of the wealth-producing-process.4 Lewis Mumford
provides a historical analysis:
The leading mercantile cities [of Europe] resorted to armed force in order to
destroy rival economic power in other cities and to establish a [more
complete] economic monopoly. These conflicts were more costly, destructive,
and ultimately even more futile than those between the merchant classes and
the feudal orders. Cities like Florence, which wantonly attacked other
prosperous communities like Lucca and Siena, undermined both their
productivity and their own relative freedom from such atrocious attacks.
When capitalism spread overseas, its agents treated the natives they
encountered in the same savage fashion that it treated their own nearer rivals.5
This policy is still in full force yet today. Title to industrial capital (the tools
of production) and control of trade are today the primary mechanisms for
claiming the wealth of the weak on the periphery of empire, the
countryside, just as it has for the past millennium. Plunder-by-raids has
been transformed into plunder-by-trade.
48 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Adam Smith’s own words exposes free trade as only a cover for the same
past mercantilist policies. The
ultimate object ... is always the same, to enrich the country by an
advantageous balance of trade. It discourages the exportation of the materials
of manufacture [tools and raw material], and the instruments of trade, in order
to give our own workmen an advantage, and to enable them to undersell
those of other nations in all foreign markets: and by restraining, in this
manner, the exportation of a few commodities of no great price, it proposes
to occasion a much greater and more valuable exportation of others. It
encourages the importation of the materials of manufacture, in order that our
own people may be enabled to work them up more cheaply, and thereby
prevent a greater and more valuable importation of the manufactured
commodities.7
In her early development, Britain structured her laws to protect her industry
and commerce. The British Enclosure Acts of the 15th, 16th, and 17th
centuries were sparked by the labor shortage created by the Black Death
and the need for sheep farming to produce for the wool market created by
Hanseatic traders.
As opposed to today’s industry fleeing high-priced skilled labor and
moving to cheap labor, skilled artisans of almost every product in world
commerce were brought to England from all over the world to train British
labor in those skills. Bounties were given to promote exports of
manufactures. And custom duties were enacted to protect those new
industries.
Dutch commerce was undercut by the Navigation Acts requiring
British products to be transported in British ships. English warships
attacked Dutch shipping and English exports and imports rapidly increased.
Refocusing Economic Thought 49
The Methuen treaty of 1703 with Portugal shut the Dutch off from trade
with the Portuguese Empire.
The suddenly idled Dutch capital and skilled labor emigrated to the
protective trade structure of England. The trade and commerce of France and
Spain were overwhelmed by similar strategies. Every one of these policies
under which Britain developed were the yet-unwritten philosophies of
Friedrich List, none were the yet-unwritten philosophies of Adam Smith.8
And Adam Smith himself knew this well. Note his last statement in this
quote:
A small quantity of manufactured produce purchases a great quantity of rude
produce. A trading and manufacturing country, therefore, naturally purchases
with a small part of its manufactured produce a great part of the rude produce
of other countries; while, on the contrary, a country without trade and
manufactures is generally obliged to purchase, at the expense of a great part of
its rude produce, a very small part of the manufactured produce of other
countries. The one exports what can subsist and accommodate but a very few,
and imports the subsistence and accommodation of a great number. The
other exports the accommodation and subsistence of a great number, and
imports that of a very few only. The inhabitants of the one must always enjoy
a much greater quantity of subsistence than what their own lands, in the actual
state of their cultivation, could afford. The inhabitants of the other must
always enjoy a much smaller quantity.... Few countries ... produce much more
rude produce than what is sufficient for the subsistence of their own
inhabitants. To send abroad any great quantity of it, therefore, would be to
send abroad a part of the necessary subsistence of the people. It is otherwise
with the exportation of manufactures. The maintenance of the people
employed in them is kept at home, and only the surplus part of their work is
exported.... The commodities of Europe were almost all new to America, and
many of those of America were new to Europe. A new set of exchanges,
therefore, began to take place which had never been thought of before, and
which should naturally have proved as advantageous to the new, as it certainly
did to the old continent. The savage injustice of the Europeans rendered an
event, which ought to have been beneficial to all, ruinous and destructive to
several [most] of those unfortunate countries.9
a Lets not forget simple luck as to why Britain became the first industrial nation. Britain’s
rich coal fields and iron mines were only 15 miles apart and British industries had access to
cheap water transportation for both internal and world commerce. The same advantage of
rich coal and iron mines and cheap water transportation favored America. It was from those
initial natural advantages that Britain expanded by advantageous trade agreements. America
and Europe are now expanding in the same manner by structural adjustments imposed upon
weak nations that are advantageous to themselves.
50 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
The Wealth of Nations does not consider the industrial development of the
periphery of empire: “Adam Smith and J.B. Say had laid it down that ...
nature herself had singled out the people of the United States [and most of
the rest of the world] exclusively for agriculture.” And Friedrich List, who
challenged the philosophy of Adam Smith because his native Germany
could not develop under a philosophy designed to maintain the supremacy
of Britain, was criticized by his staunchest supporters for considering
developing only Europe and America.12
William Pitt, British Prime Minister, studied Adam Smith’s Wealth of
Nations closely and saw the opportunity to solidify Britain’s control of
World trade. If the world could be convinced to follow Adam Smith, he
reasoned that no other nation could compete with British industry even if
Refocusing Economic Thought 51
As Napoleon knew, unless it is also equal trade, one country’s free trade is
another country’s impoverishment. Friedrich List, from whose classic much
of this part of our story comes, observed the devastation that British free
trade created in France, observed France’s rapid recovery when she
protected herself against predatory British industry, and also observed
firsthand the rapid development of the newly-free United States when they
ignored Britain's promotion of Adam Smith free trade as interpreted by
British mercantilists.15
within Britain’s trade empire, and the British navy was there to enforce that
treaty.
[America] could import only goods produced in England or goods sent to the
colonies by way of England. They were not allowed to export wool, yarn, and
woolen cloth from one colony to another, “or to any place whatsoever,” nor
could they export hats and iron products. They could not erect slitting or
rolling mills or forges and furnaces. After 1763, they were forbidden to settle
west of the Appalachian Mountains. By the Currency Act of 1764, they were
deprived of the right to use legal tender paper money and to establish colonial
mints and land banks.19
a The following books lead you to primary sources on nations, especially America,
successfully developing protecting their industries and markets. Though some—because they
were needed as allies—developed under others’ protection, there are no nations which
successfully developed without protection for their industries and markets. Friedrich List,
The National System of Political Economy (Fairfield, NJ: Auguatus M. Kelley, 1977): Clarence
Walworth Alvord, The Mississippi Valley in British Politics: A Study of Trade, Land Speculation, and
Experiments in Imperialism Culminating in the American Revolution ( New York: Russell & Russell,
1959); Paul Bairoch, Economics and World History; Correli Barnett, The Collapse of British Power
(New York: Morrow, 1971); Oscar Theodore Barck, Jr. and Hugh Talmage Lefler, Colonial
America, 2nd ed. (New York: Macmillan, 1968); Samuel Crowther, America Self-Contained
(Garden City, N.Y.: Doubleday, Doran & Co., 1933); John M . Dobson, Two Centuries of
Tariffs: The Background and Emergence of the U.S. International Trade Commission (Washington DC:
U.S. International Trade Commission, 1976); Alfred E. Eckes, Jr., Opening America’s Markets:
U.S. Foreign Trade Policy Since 1776 (Chapel Hill: University of North Carolina Press, 1995);
James Thomas Flexner, George Washington: The Forge of Experience (Boston: Little Brown and
Co., 1965); William J. Gill, Trade Wars Against America: A History of United States Trade and
Monetary Policy (New York: Praeger, 1990); John Steele Gordon, Hamilton’s Blessing: The
Refocusing Economic Thought 53
only those required for allies to stop fast expanding socialism (Japan,
Taiwan, South Korea,) gained their economic freedom and the later allies
(South Korea, Thailand, Indonesia, Malaysia) gained their freedom only
temporarily.
Extraordinary Life and Times of Our National Debt (New York: Walker and Co., 1997); Douglas
A. Irwin, Against the Tide; Emory R. Johnson, History of Domestic and Foreign Commerce of the
United States (Washington DC: Carnegie Institute of Washington, 1915); Richard M.
Ketchum, ed., The American Heritage Book of the Revolution (New York: American Heritage
Publishing, 1971); Michael Kraus, The United States to 1865 (Ann Arbor: University of
Michigan Press, 1959); John A. Logan, The Great Conspiracy: Its Origin and History, 1732-1775
(New York: A.R Hart & Co., 1886); William MacDonald, ed., Documentary Source Book of
American History, 1606-1926, 3rd ed. (New York: MacMillan, 1926); John C. Miller, Origins of
the American Revolution (Boston: Little Brown and Co., 1943); Samuel Eliot Morison and
Henry Steele Commanger, Growth of the American Republic, 5th ed. (New York: W.W. Norton,
1959); Sir Lewis Namier and John Brooke, Charles Townsend (New York: St. Martin’s Press,
1964; Gus Stelzer, The Nightmare of Camelot: An Expose of the Free Trade Trojan Horse (Seattle,
Wash.: PB publishing, 1994); Peter D.J. Thomas, The Townshend Duties Crisis: The Second Phase
of the American Revolution, 1776-1773 (Oxford: Clarendon Press, 1987); Arthur Hendrick
Vandenberg, The Greatest American (New York: G.P. Putman’s and Sons, 1921).
54 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Removing protection from former allies was little more than turning loose
the dogs of speculation through structural adjustments requiring access to
Asian markets for speculative capital. The steadily declining commodity
prices worldwide proves there was plenty of room to print money—better,
more equal, and safer yet, permit other regions and other nations to print
their own money for industrial and infrastructure development—and
expand the world economy. So the decision to shrink the world economy to
provide more for the imperial-centers-of-capital was a very conscious one:
I]f a society spends $100 to manufacture a product within its borders, the
money that is used to pay for materials, labor and, other costs moves through
the economy as each recipient spends it. Due to this multiplier effect, $100
worth of primary production can add several hundred dollars to the Gross
National Product (GNP) of that country. If money is spent in another
country, circulation of that money is within the exporting country. This is the
reason an industrialized product-exporting/commodity-importing country is wealthy and
an undeveloped product-importing/commodity-exporting country is poor (emphasis
added). Developed countries grow rich by selling capital-intensive (thus
cheap) products for a high price and buying labor-intensive (thus expensive)
products for a low price. This imbalance of trade expands the gap between
rich and poor. The wealthy sell products to be consumed, not tools to
produce. This maintains the monopolization of the tools of production, and
assures a continued market for the product.25
Refocusing Economic Thought 55
That the periphery would face a meltdown if protection was removed was
well understood. In False Dawn, Professor John Gray of the London School
of Economics points out that free trade and secure economies are
incompatible:
In any long and broad historical perspective the free market is a rare and short-lived
aberration. Regulated markets are the norm, arising spontaneously in the life of every
society.... The idea that free markets and minimum governments go together ... is an
inversion of the truth.... The normal concomitant of free markets is not stable
democratic government. It is the volatile politics of economic insecurity.... Since the
natural tendency of society is to curb markets, free markets can only be created by
the power of a centralized state.... A global free market is not an iron law of historical
development but a political project.... Free markets are the creatures of government
and cannot exist without them.... Democracy and free markets are competitors rather
than partners.... [Just as the disastrous British free market 100 years ago which
culminated into two world wars, the current] global free market is an American
project.... In the absence of reform, the world economy will fragment, as its
imbalances become insupportable.... The world economy will fracture into blocs,
each driven by struggles for regional hegemony.26
Although Americans are currently (2004-05) riding high as free trade profits
flow from the South to the North,
56 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a global free market ... no more works in the interests of the American
economy than of any other. Indeed, in a large dislocation of the world
markets the America economy would be more exposed than many others....
In this feverish atmosphere a soft landing is a near impossibility. Hubris is not
corrected by twenty percent.... Economic collapse and another change of
regime in Russia; further deflation and weakening of the financial system in
Japan, compelling a repatriation of Japanese holdings of US government
bonds; financial crisis in Brazil or Argentina; a Wall Street crash – any or all of
these events, together with others that are unforeseeable, may in present
circumstances act as the trigger of a global economic dislocation. If any of
them come to pass, one of the first consequences will be a swift increase of
protectionist sentiment in the United States, starting in Congress.28
Endnotes
1 J.W. Smith, Economic Democracy: The Political Struggle of the Twenty-First Century, updated and
expanded 3rd edition, (www.ied.info/: The Institute for Economic Democracy, 2003),
Chapter 1, for labor rates, citing, Doug Henwood, “Clinton and the Austerity - p. 628. Colin
Hines and Tim Lang (Jerry Mander and Edward Goldsmith eds.) in The Case against the
Global Economy and for a Turn toward the Local (San Francisco: Sierra Club, 1996), p. 487 says
$24.90 an hour for the Germany and $16.40 for the U.S. When benefits are included
German manufacturing wages rise to $30 and hour, America to $20 and hour and Britain to
$15 (Richard C. Longworth, Global Squeeze: The Coming Crisis of First-World Nations (Chicago:
Contemporary Books, 1999), p. 177. Russian wages will increase even greater when benefits
are factored in.
2 Karl Polanyi, The Great Transformation (Boston: Beacon Press, 1957), p. 277. Quoting the
classics: Henri Pirenne, Economic and Social History of Medieval Europe. (New York: Harcourt,
Brace, 1937) and Eli F. Heckscher’s Mercantilism, 2 vol. (New York: The Macmillan
Company, 1955).
3 Immanuel Wallerstein, The Origin of the Modern World System, vol. 1 (New York: Academic
Press, 1974), pp. 119-20. See also Paul Bairoch’s, Cities and Economic Development from the Dawn
of History to the Present (Chicago: University of Chicago Press, 1988).
For “plunder-by-trade,” see William H. McNeill, The Pursuit of Power (Chicago: University of
Chicago Press, 1982).
4 Christopher Layne, “Rethinking American Grand Strategy,” World Policy Journal, (Summer
1967), p. 279; Kropotkin, Mutual Aid, Chapters 6 and 7; George Renard, Guilds of the Middle
Ages (New York: Augustus M. Kelly, 1968), p. 35; Petr Kropotkin, The State (London:
Freedom Press, 1987), p. 41; Dan Nadudere, The Political Economy of Imperialism (London: Zed
Books, 1977), p. 186.
6 Barbara Tuchman, The March of Folly (New York: Alfred A. Knopf, 1984), pp. 130-31. For
early mercantilist theories see Douglas A. Irwin, Against the Tide: An Intellectual History of Free
Trade (Princeton, N.J.: Princeton University Press, 1996).
7 Adam Smith, The Wealth of Nations (New York: Random House, 1965), p. 607.
8 Friedrich List, The National System of Political Economy (Fairfield, NJ: Auguatus M. Kelley, 1977),
see Michael Perelman, The Invention of Capitalism: Classical Political Economy and the Secret History
of Primitive Accumulation (London: Duke University Press, 2000) and Irwin, Against the Tide,
Chapter 3.
10 List, National System, pp. 366-370.
11 Ibid, p. 73. Earlier theorists on protection against mercantilists were: Alexander Hamilton,
1791; Adam Muller, 1809; Jean-Antoine Chaptal, 1819 and Charles Dupin, 1827, see Paul
Bairoch, Economics and World History: Myths and Paradoxes (Chicago: University of Chicago
Press,
12 Ibid, p. 99.
15 Ibid, p. xxv.
16 Charles A. Beard, An Economic Interpretation of the Constitution (New York: Macmillan
Publishing Co., 1941), p. 46. See also Michael Barratt Brown, Fair Trade (London: Zed
Books, 1993), p. 20.
17 Beard, Economic Interpretation, pp. 46-47, 171, 173.
18 Richard Barnet, The Rockets’ Red Glare: War, Politics and American Presidency (New York: Simon
York: International Publishers, 1982), p. 32; Smith, Wealth of Nations, pp. 548-49, Book IV,
Chapters VII, VIII; William Appleman Williams, Contours of American History (New York:
W.W. Norton & Company, 1988), pp. 105-17; Frederic F. Clairmont, The Rise and Fall of
Economic Liberalism (Goa India: The Other India Press, 1996), p. 100; James Fallows, “How
the World Works,” The Atlantic Monthly. (December 1993), p. 42.
20 Williams, Contours of American History, p. 221.
21 Williams, Contours of American History, pp. 192-97, 339-40; List, National System, especially pp.
59-65, 71-89, 92, 342, 421-22; Chapter XI; Herbert Aptheker, The Colonial Era, 2nd ed. (New
York: International Publishers, 1966), pp. 23-24; Barnet, The Rockets’ Red Glare, pp. 40, 60,
68. 21 34Dean Acheson, Present at the Creation (New York: W.W. Norton & Company, 1987),
p. 7.
22 “The Three Marketeers,” Time. February 15, 1999, pp. 34-42.
23 Stephen Gill, “The Geopolitics of the Asian Crisis,” Monthly Review (March, 1999), pp. 1-9.
24 Peter Gowan, The Global Gamble: Washington’s Faustian Bid for World Dominance (New York:
199.
27 Gowan, The Global Gamble, p. 96, see also pp. 95-138 and Richard C. Longworth, Global
Squeeze: The Coming Crisis of First-World Nations (Chicago: Contemporary Books, 1999), pp.
225, 243.
28 Gray, False Dawn, pp. 217, 224-25.
How a “Free” People with A “Free” Press are Propagandized 59
The great masses of the people in the very bottom of their hearts tend to be corrupted
rather than purposely or consciously evil ... therefore ... they more easily fall a victim to
a big lie than to a little one, since they themselves lie in little things, but would be
ashamed of lies that were too big. -Adolph Hitler from Mein Kampf
Study a map of the world. Note the large areas where most of the natural
resources are located, which is undeveloped and impoverished, and which
consumes only 14% of the world’s resources. Note the small area of the
world which has few resources, is developed, wealthy and powerful and
which consumes 86% of the world’s resources.1 Obviously the major share
of the natural wealth of the impoverished world is being claimed by a small
but powerful allied group of nations.
The purpose of most violence around the world is to control those
resources and thus control the wealth-producing-process. People are taught to be
good, are good, and would not tolerate dishonesty and violence in their
name. Thus governments of powerful nations must hide this theft of others
wealth through lying to their people.
After WWII, a shattered Europe no longer had the wealth and power
to control its colonies providing the resources to be transformed into their
wealth. If those colonies breaking free gained control of their destiny, their
resources would be converted into products and wealth for themselves.
They would become wealthy while Europe, without resources, would
become impoverished. This was a serious threat to what all nations term
their “National Security.”
After that war, most of the world’s industrial and financial wealth was
in America. Instead of championing the freedom of their sister colonies, the
powerful and wealthy in America chose to support their war-shattered
ethnic and religious cousins in Europe through suppressing the world’s
break for freedom. That suppression required the use of massive military
power that killed very large numbers of people. From the perspective of the
60 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Frances Stoner Saunders, in The Cultural Cold War: the CIA and the World of
Arts and Letters, tells us how every aspect of culture was covertly
orchestrated to inoculate the so-called free world against any thoughts
which might lead to a restructuring of the philosophical or legal base that
was the foundation of current wealth and power:
Whether they liked it or not, whether they knew it or not, there were few writers,
poets, artists, historians, scientists or critics in post-war Europe whose names were
not in some way linked to this covert enterprise.... Defining the Cold War as a
‘battle for men’s’ minds’ it stockpiled a vast arsenal of cultural weapons: journals,
books, conferences, seminars, art exhibitions, concerts, awards.... Endorsed and
subsidized by powerful institutions, this non-Communist group became as much a
cartel in the intellectual life of the West as Communism had been a few years
earlier (and [since it was the intellectual left that was being targeted for control
through the establishment of a Non-Communist left] it included many of the same
people).... It spied on tens of thousands of Americans, harassed democratically
elected governments abroad, plotted assassinations, denied these activities to
Congress, and, in the process, elevated the art of lying to new heights.3
All will deny it but, according to Frances Stoner Saunders and others cited,
leading columnists, reporters, and politicians (Stewart Alsop, Walter
Lippman, Averell Harriman, the Bundy brothers, and others) were social
friends of CIA leaders, such as William Colby and Frank Wisner, and were
in on the Grand Strategy of misinforming the public to prepare them for the
Cold War. Frequently reporters were given news scoops for publishing CIA
wordsmiths’ distortions of reality. The Pike and Church Committee
hearings of 1975 and 1976 exposed over 400 reporters as being on the CIA
payroll (at $200 a month, they were cheaper than prostitutes). Other
reporters would follow up on those creations of reality and government
62 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
agencies, usually listed only as a trusted source, were all primed to support
those fictions. With the CIA’s listening posts all over the world, these
propagandists (building what Eric Fromm called a “framework of orientation”
for society to function within) reputations grew ever larger.
The CIA’s strategy-of-tension to create fear so citizens would support the
militarization of America was for their wordsmiths to create tens of
thousands of editorials which were sent to newspapers around the world
for editors to restructure and use as their own. Many dozens of think-tanks
and institutes were created, some associated with universities and some
independent. These were funded and staffed with ideologically pure editors
to polarize Americans through fear. All this was done under the cover of
protecting peace, freedom, justice, human rights, and majority rule.
The propaganda budget to create this “framework of orientation” absorbed
most of the CIA’s billions in funding. Those costs were greater than the
budgets of AP, Reuters, and UPI even as those “free press” news agencies
were the primary carriers of intelligence agencies creations. The American
Federation of Labor, the Marshall Plan, and over 170 foundations (many
created by the CIA) funneled propaganda money all over the world.
The writings of Peter Coleman (it is his exposure of the Congress for
Cultural Freedom cited above), Henry Luce, Isaiah Berlin, Arthur Koestler,
Sidney Hook, Reinhold Neibuhr, Robert Conquest, Bertrand Russell (so
some still wrote good stuff), Arthur Schlesinger, and many more, actually
hundreds and possibly thousands more, were covertly coordinated to
spread the same fear.a Some of their books were bought by the tens of
thousands by the CIA and spread around the world. “A central feature of
building this “framework of orientation” was to advance the claim that it
[propaganda] did not exist.”4
Radio Free Europe, Radio Liberty, and the Voice of America, with 100
transmitters each, and stations beaming to Asia, the Middle East, and Latin
America were CIA creations. As they were being run by occupation armies,
news of political importance disseminated within Japan and Germany,
including comic books, was primarily that of CIA wordsmiths.5 The largest
news agency in Germany and major media (radio stations, magazines,
newspapers) in many countries were established by the CIA and staffed
with ideologically pure editors. Wire services and publishing companies
were covertly established, funded, and controlled to spread the Cold War
story further. Attorney William Schapp says the CIA
alone—not to mention its counterparts in the rest of the American
intelligence community—owned or controlled some 2,500 media entities all
over the world. In addition, it has people ranging from stringers to highly
visible journalists and editors in virtually every major media organization.6 [To
aSome of these authors’ writings occasionally criticized Western policies, not all their
writings were influenced by support money. .
How a “Free” People with A “Free” Press are Propagandized 63
Dissident voices had to be silenced. Over 300 Hollywood stars and writers
were blacklisted and their careers were destroyed. This was pointed out
during the March 21, 1999, Academy Awards when the recipient of an
Oscar was acknowledged by all major media as having testified against his
friends to the House Un-American Activities Committee.
This hints to the thousands of professors and intellectuals whose
careers were destroyed or badly damaged. Columbia University fired every
professor accused under McCarthyism. Meanwhile the careers of those
using the fabrications of CIA wordsmiths building this “framework of
orientation” blossomed. The overseers of this massive propaganda operation
knew what they were doing; sincere professors researched this fraudulent
history, wrote syntheses of that history, and then referenced each other as
reliable sources. In the created climate of fear, opposing views were
unsaleable, thus unwritten. Over time, the CIA version became the only
history inside or outside the university classroom.
a In “A Hostile Takeover” (The American Prospect, Spring 2003, pp. A16-A18) Martin Garbus
explains how The Federalist Society for Law and Public Policy was highly successful in its
purpose: packing the federal courts. We were able to condense how the belief systems of
legislators, academia, and the media were controlled to protect wealth and power. The
serious researcher can study Garbus’s article for how the courts are similarly controlled.
66 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a The media took the tack that this was something new. But it is not new nor was it halted
just because they were caught. As we write this, popular music interspersed with propaganda
is being broadcast to Muslims over newly established radio programs.
How a “Free” People with A “Free” Press are Propagandized 67
citizens will remember those newsreels. They were shown in every movie
theatre.) Think-tanks were created, funded, and staffed by ideologues.
These think-tanks and professors were coached and subsidized by
intelligence agencies of several countries to write thousands of books. Tens
of thousands of partly fraudulent to totally fraudulent articles were created
by CIA wordsmiths and planted all over the world (700 articles were
planted worldwide to control the world’s view on the overthrow and
assassination of Allende in Chile). Reporters became leading columnists by
being provided news scoops in exchange for publication of this nonsense
passed off as unfolding history. With many news scoops that reporter
would quickly rise to the top in his or her profession.
Thousands of books were written by sincere academics reading and
citing that fraudulent literature. Novels and movies by authors with no
connection to governments were written and they deepened the beliefs and
hysteria of that propagandized audience. These books, articles, and movies
became reality to Western citizens. Believing they were under imminent
threat of attack by dictatorial, violent, and powerful communists, the
propagandized masses, including mainstream media and most academics,
gave their full support for the Cold War. 14
All major Western governments of the allied imperial-centers-of-capital were
busy creating the same social-control-belief-systems by writing the same
distorted history. Social scientists are still using those fraudulent books and
articles as the foundation of their research as they write today’s textbooks.
Sincere academics sued to have the titles of those fictions released. But the
Supreme Court ruled that this would endanger the national security.
Academia has never refuted the false history they created and that
“framework of orientation” rules within the University system yet today.
History books teach us that, with the exception of communist nations,
all countries in the world were free after WWII. This was never true; we will
be documenting thoroughly that most of the colonial world was unable to
break free.
The use of buzzwords are the foundations of social-control-paradigms
(“frameworks of orientation”). Through the CIA’s Mighty Wurlitzer’s use of
buzzwords reality could be reversed: Emerging democracies attempting to
provide their citizens with even more equality and rights than Western
“democracies” were targeted and buzzword labels of dangerous and violent
people were used to describe them.a While defending themselves from
subversion, governments, some equally as democratic as America or even
more democratic, became labeled communist dictators, tyrants, subversives, and
extremists. The very nations destabilizing others worldwide labeled
themselves with the buzzwords of good; peace, freedom, democracy, justice, and
aThis is specifically what communist governments were trying to do and is why they had to
be demonized. If they had been allowed to succeed, capitalism’s monopoly system would
have collapsed.
68 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
than the established right to hard-right political powers who may gain a
political following and change a nation’s “framework of orientation.”a
Feisal Mansoor of Sri Lanka informs us that “idealistic youths were
being murdered by the SL state in 1987-1992, the elite did not move until
one of their own (Richard De Zoysa, journalist and doyen of Colombo
society) was taken away from his home at night and found the next
morning shot through the head on a beach South of Colombo.” Like the
Inquisitions of the Middle Ages, the tortures and deaths abated when it
reached into the ruling classes. Obviously orchestrated death squads were
operating in many more countries than those we have addressed. This is all
being repeated in Iraq as I write (keywords: “let a thousand militias bloom,
A.K. Gupta” or “the Salvador Option and watch for future such articles
exposing these private militias as death squads).
Due to indoctrination through the Mighty Wurlitzer, otherwise idealistic
and honest people—such as you and I but who had not learned better—
established and orchestrated death squads which assassinated thousands of
teachers, professors, labor leaders, cooperative leaders, and church leaders,
the budding Washingtons, Jeffersons, Madisons, Lenins, Gandhis, and
Martin Luther Kings of those countries. These were very courageous,
totally non-violent people who, knowing their names would go on a
terrorist death squad list, still stood up to lead. But the CIA’s Mighty
Wurlitzer recorded many of these brave people in history (that “framework of
orientation”) as some of the world’s worst people.
not much danger anyway; the managers-of-state designing this Cold War
functioned just as you and I would if we had power. Most, if not all,
allowed within the inner circles of power were already ideologically on the
same wavelength.
As discussed above, many media personalities allowed within the inner
circle of managers-of-state knew the plan was to misinform the public so as to
gain support for the planned Cold War. These media giants then knowingly
planted those created realities (Soviet aggression, missile gaps, under
imminent threat of attack, potential loss of your freedom, et al.) designed to
place fear in the hearts of all in the Western world.
Reporters accredited to the highest levels of government instinctively
knew their accreditation would be withdrawn if they challenged the official
view. When briefed, those reporters would dash for the phone to be the
first to get the news out. This sensationalized news would immediately
become lead articles in all media. In one day, whatever the government
wanted the people to believe (a “framework of orientation”) would be firmly
implanted in the public mind. Only a few on the fringes would dare
challenge what had now become accepted reality by an entire nation and of
course no one listens to voices on the fringes of society.a
a The hard right of the Republican Party, noting how easy a population is
controlled if you one has control of the media, created what is now termed an
“echo chamber.” “Since 1992 [Grover Norquist] has hosted Wednesday meetings
in the Washington DC office of his organization, Americans for Tax Reform.
[This] meeting pulls together the heads of leading conservative organizations to
coordinate activities and strategy. ‘The meeting functions as a weekly checklist so
that everybody knows what’s up, what to do.’…George W. Bush began sending a
representative ..even before he formally announced his candidacy for president.
‘Now a Whitehouse aide attends each week.’…’Vice President Cheney sends his
own representative. So do GOP congressional leaders, right-leaning think tanks,
conservative advocacy groups and some like-minded K Street lobbyists. … [I]t is
the political equivalent of one-stop shopping. By making a single pitch, the
administration can generate pressure on members of Congress, calls to radio talk
shows and political buzz from dozens of grassroots organizations’” (Sheldon
Rampton & John Stauber, Banana Republicans: How the Right Wing is Turning America
into a One-Party State [New York: Penguin Books, 2004], p. 5). Like all
propagandists, even as they orchestrate the discourse of the nation, they pour out
the rhetoric of a liberal media in which they supposedly do not have a voice.
Just as the slant of national and world news desired by powerbrokers reach the
nation in one day, the gross distortions of the hard right pour across America every
day. The character and reputation of any who dare challenge those views will come
under massive assault by that same “echo chamber.” Thus America is gridlocked
into a massively distorted view of any subject of the moment. Over and over again,
topic after topic, reality is reversed and the masses speak and vote against their own
best interests, the best interests of their country, and the best interests of the world.
National discourse being this far from reality does not portend well for America’s
near future.
How a “Free” People with A “Free” Press are Propagandized 71
Once the belief system that the West was under imminent threat was
firmly in place, the careers of any mainstream reporter that dared a serious
exposé of the propaganda system would have been at high risk. Any media
that dared publish a serious exposé would face a massive loss of both
readers and advertising. No established reporter or media will choose
obvious suicide over survival and high monetary and reputation rewards by
going with the flow.
Thus, once the desired fear was established in the public mind,
maintaining that tension was not only easy, finding opposing views in the
media of record ranged from difficult to impossible. Multiply these carefully
crafted versions of world events by thousands of times and one arrives at
today’s view of the world. Only on the extreme margins of society can one
find media personalities and writers who speak of the terrors (thousands
tortured and millions killed) endured by people facing the direct actions of
the West’s national security policies.
Depicting one’s own society as good goes hand in hand with strategies-of-
tension depicting others as a threat to a nation’s security. While the Western
world was bathed in a view of their generosity and efforts for world peace,
the worldwide covert destabilizations were terrifying to those facing the
brunt of America’s national security policy.15
years after the beginning of the Cold War] that we awakened fully to the facts
of the surrounding world and to the scope and kind of action required by the
interests of the United States; the second period, that of President Truman’s
second administration, became the time for full action upon those
conclusions and for meeting the whole gamut of reactions—favorable,
hostile, and merely recalcitrant foreign and domestic—that they produced. In
the first period, the main lines of policy were set and begun; in the second,
they were put into full effect amid the smoke and confusion of battle.... The
purpose of NSC-68 [the master plan for the Cold War] was to so bludgeon the mass mind
of “top government” that not only could the president make a decision but that the decision
could be carried out.17 (Emphasis added.)
America and every other nation, massive funds were spent for that control
and it required more than money.
Communist partisans had fought the Germans and Mussolini and these
heroes would easily win post WWII elections. To prevent the only effective
political force left in Italy from ruling, Mafia leaders were released from
Mussolini's prisons, armed, and placed in charge of the cities as the allies
marched up the Italian peninsula.22
The CIA funded programs to discredit Italian labor politicians while
supplying money to hard-right politicians. Operation Gladio, practicing a
terrorist strategy-of-tension through planting bombs and blaming it on the
“Reds” was a CIA operation. When uncovered, this covert operation was
found to have 139 buried caches of explosives and weapons. The bombing
of the Bologna railway station, killing 84 people, was only one of hundreds
of Gladio bombings that killed several hundred people and injured many
more.23
Operation Statewatch, which oversaw Operation Gladio, numbered
from a high of 2,000 operatives in Italy to a low of 400 in Belgium and
operated worldwide using the same ‘strategies-of-tension’ to discredit socialist
elements throughout Europe, Japan, and other nations.24 As virtually no one
in the upper echelons of government thought the Soviet Union was going
to invade Western Europe or anybody else, these were not stay-behind-
forces to overthrow an invasion as claimed when exposed. These covert
forces were to control elections and take back governments by force if lost
by the vote.
These are not isolated events: ‘strategies-of-tension’ blaming the opposition
for mayhem (right by CIA training manuals) is standard operating
procedure.25 After WWI, labor was poised to rule Italy and managers-of-state
decided in secret to place Mussolini in power. The famed march of the
black shirts three days later was the strategy-of-tension which provided cover
for that transfer of power. Germany’s famous Reichstag fire which
polarized support for Hitler was several months after he had been given
power in a secret January meeting of German powerbrokers. Under cover
of that strategy-of-tension German legislators voted in Hitler’s Enabling Act
(the defining guidelines of Fascism) under which thousands of labor leaders
and opposing political leaders were arrested. President George Bush’s
Patriot Act, enacted under the cover of the 9/11/2001 terrorist attack on
America, is a direct copy of that Enabling Act.
Strategies-of-tension to gain the loyalty of the citizenry in elections or wars
is an old political trick. We will be addressing later how the Korean war,
where this author spent his military service, was strictly a strategy-of-tension so
voters would accept the massive expenditures and loss of life that would be
required to suppress the world’s break for freedom as laid out in the master
plan for the Cold War, NSC-68, which had been finalized only two months
earlier. Cold War planners knew what they were doing. The military costs
How a “Free” People with A “Free” Press are Propagandized 75
for the Cold War were very high. But the cost to the impoverished world
was even greater. Loss of life for the state-sponsored terrorism (wholesale
terrorism) was, at a minimum, between 12-million and 15-million.
Hundreds of millions more died from starvation and disease due to
destruction of their economies, billions remained impoverished, and those
suppressive wars are yet on-going.a
The ease with which poverty can be eliminated through democratic-
cooperative-(superefficient)-capitalism, as will be demonstrated in the concluding
chapters, proves that control of resources and the wealth-producing-process
through military power is the direct cause of the world’s poverty.
aThe official tally of war dead during that timespan is 21-million. Perhaps more than the 12-
million to 15-million were also victims of the Cold War but the covert actions were buried so
deep they have not been detected.
76 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
the prosecutor knew that his witnesses were government informers with no
credibility. Proving these conspiracies required some of the longest court
cases in American History. As few such targeted people had either resources
or determined people behind them, many more innocent people had their
lives destroyed by what can only properly be called America’s political police,
surely some of those totally innocent political prisoners died there and others
are still there.26
Lane points out that a Miami television station that evening reported only
that Hunt had lost a libel case and had ignored her eloquent description of
the historic importance of this case. Armstrong challenged that station on
their reporting. It was then accurately reported by that one station but was
ignored by all other media, local and national. In contrast, Hunt’s winning
How a “Free” People with A “Free” Press are Propagandized 79
of the first trial where none of this explosive testimony was given and
which was of no historic importance to anyone was widely reported.
In William F. Pepper’s An Act of State: The Execution of Martin Luther King
we learn that, in a suit brought by the King family against one of the
assassins and others unnamed, it had been proven in Judge Swearingen’s
Courtroom in Memphis, Tennessee, between November 15, 1999 and
March 2000, that Martin Luther King had been assassinated by elements of
the Memphis police with the entire operation overseen by Army
Intelligence.28
King’s assassination was a part of the now well-known Operation
COINTELPRO which was established specifically to destabilize rising
political groups. William F. Pepper was the King family’s lawyer and we
encourage the reader to read the story of the 70-plus witnesses bringing the
assassination to light. One can only conclude that aristocracy’s violent
suppression of any who threaten their wealth and power is alive and well in
Western “democracies.”a
After Mark Lane’s exposure of the CIA being behind President
Kennedy’s assassination I dismissed other theorists. However, the dynamite
testimony of President Johnson’s mistress (never used by Pepper so as to
avoid the taint of conspiracy theorists) makes it clear their instincts were
right. Each had been tracing a few of the many threads of power directly
involved in that assassination.
Some of those same powerbrokers were behind both Kennedy’s and
King’s assassination. Those movers and shakers were meeting to plan
King’s demise less then a month after the threat of President Kennedy
shutting down their war plans was eliminated.29 The media was just as silent
on this exposure of silencing America’s prominent black leaders as they
were about the assassination of John F. Kennedy.
Assassinations of up and coming leaders in periphery countries by
death squads has been standard practice and we now know, when the threat
to powerbrokers is serious, that this is also practiced within the imperial
centers. Units within the intelligence communities are specially trained for
these jobs, the relevant government structures stand ready to cover it up
(plausible denial, the title of Lane’s book, but better explained in Pepper’s);
and the media, local police, regional police, the judicial system, and aware
a Robert O’Harrow Jr.’s No Place to Hide (New York: Free Press, 2005) alerts us that
“big brother” is here now. Each person name is electronically tagged. As they go
about their daily business they leave electronic trails as to where they have been and
what they have done. Every swipe of a debit or credit card is recorded. Written
records are scanned into databases. Medical, legal, insurance activity, et al, is typed
into major databases. Information corporations or governments can type names
into a powerful computer and instantly see everything recorded that every person
in America and a few hundred million outside America’s borders has done and is
doing.
80 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
politicians are, just as you and I would be, too cowed to expose what they
know.
Bobby Kennedy was loved by Americans as much as John F. Kennedy.
If he was elected president (and he had just won the California primary the
eve he was assassinated) he would have had the will, the knowledge, and the
power to expose the true assassins of his brother. That could not be
permitted.30
How and why the true assassins got away with this can be summed up
in two sentences: In Economic Democracy: The political struggle of the 21st-Century,
we learned that anyone who exposed that Japan was running a pure
mercantilist controlled economy and their company would be totally
ostracized and destroyed. In the same way if anyone in the media or
academia were ever a threat to exposing the system they would be
immediately face the full force of the system and be ostracized to the
margins of society or (as we see by the Kennedy and King assassinations)
worse.
By studying the above books and this author’s major work, Economic
Democracy, one will more fully understand how elite-protective “frameworks of
orientation” are imposed upon an acclaimed “free press” and academia who
then, largely unwittingly, impose it upon a population whose government,
educational institutions, and press claim to be honest recorders of history.
Perhaps the most illuminating aspect of the Kennedy assassination is how
the media practice self-censorship whenever a reality surfaces that threatens
the foundation beliefs of society.a
a Smith, J.W., WHY?, Chapter 3. For clear illumination as to who killed President Kennedy,
first read the solidly authoritative Mark Lane, Plausible Denial: Was the CIA Involved in the
Assassination of JFK? (New York: Thunder Mouth Press, 1991); William F. Pepper, An Act of
State: The Execution of Martin Luther King (New York: Verso, 2003), p. 127 and Claudia Furiati,
ZR Rifle: The Plot to Kill Kennedy and Castro (Melbourne: Ocean Press, 1994). For further
information read Mathew Smith, Say Goodbye to America: The Sensational and untold Story of the
Assassination of John F. Kennedy (London: Mainstream Publishing, 2001); L. Fletcher Prouty,
JFK: The CIA, Vietnam, And the Plot to Kill Kennedy (New York: Carol Publishing, 1992); For a
view of how the CIA used terrorism and assassinations all over the world, including Europe,
to protect the old imperial-centers-of-capital, read Philip Willan's Puppet Masters: The Political Use of
Terrorism in Italy. After reading those four books, one can spot the solid evidence in the
following books, pass over where they go down wrong trails, and track how the powerful
accomplished the massive cover-up of Kennedy's true killers: Jim Garrison, On the Trail of the
Assassins (New York: Sheridan Square Press, 1988); Walt Brown, Treachery in Dallas (New
York: Carroll & Graf, 1995); Harrison Edward Livingston, Killing the Truth: Deceit and
Deception in the JFK Case (New York: Carroll & Graf, 1993); Jim Marrs, Crossfire: The Plot that
Killed Kennedy (New York: Carroll & Graf, 1989); Anthony Summers, Conspiracy (New York:
Paragon House, 1989). Those books and a documentary, "The Men Who Killed Kennedy,"
made in Britain for release on the twenty-fifth anniversary of Kennedy's assassination (but
self-censored by the American media) was not shown in the U.S. until 11 years later, leave
little doubt it was a political assassination (New Video Group, 250 Park Ave. S., NY, NY
10010, 212-532-3392, catalog number AAE-21201 through 21206, or A&E Home Video,
Box Hv1, 233 E. 45th St, NY, NY 10017). See also Oliver Stone’s outstanding move JFK,
Prouty is the man X in that movie which would have been better yet, actually complete and
How a “Free” People with A “Free” Press are Propagandized 81
unchallengeable, with the information of Mark Lane and Claudia Furiati. As we have pointed
out, the American government would have fallen if the major media had alerted its citizens
that key leaders of the American government, the U.S. military, and the CIA assassinated
their president. Perhaps not even Oliver Stone had the courage to alert the masses that the
true Assassins of President Kennedy were known and had been named in a court of law. We
now understand a little better how a society’s deepest secrets are kept from the masses.
Knowledge of such truths mean revolutions and a revolution may destroy society as we
know it.
82 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
To lay claim to their wealth and gain the loyalty of the masses, the
Czarist Secret Police demonized the Jews. This was only the umpteenth
time a power-structure had done that. But it was they who created The
Protocols of the Learned Elders of Zion, outlining the Jewish plan to rule the
world, which extremists use yet today to demonize the Jews.35
Every leader who is a major threat is demonized as wanting to rule the
world. Napoleon was so demonized by aristocracy and the Church and he is
recorded so in history yet today. But who ruled the world; aristocracy and
the Church of course.a When Britain did rule, Germany was so demonized.
During the first half of the 20th-Century, those now-allied imperial-centers-of-
capital were then demonizing each other as wanting to rule the world. When
the allied imperial-centers ruled (the second half of the 20th-Century), the
embattled Soviet Union was demonized as wanting to rule the world.
One need not give any more examples; it is the history of the world.
Almost every nation or allied group of nations gains the loyalty of their
people by portraying another country as an implacable enemy. Almost
universally, the party thundering the loudest is not really being threatened
by anyone. It is they who are suppressing others; almost always it is they
who are appropriating someone else’s wealth and that thunder of an enemy
is only to maintain the loyalty of the masses to protect that wealth
appropriation process. It is the loss of control of the wealth-producing-process
and others gaining their share of that wealth that is the real threat.
With the passage of America’s Patriot Act, knowledge of how
propaganda works in the world’s so-called “free” press is sobering. That
post 9-11-2003 Act is a recreation of Germany’s, post Reichstag fire,
Enabling Act under which Hitler took all rights away from targeted people
before they were jailed and executed. That act defined Fascism. The
parallels are apparent. Entire ethnic groups are targeted, databases of
potential enemies are created and those enemies are watched by a newly
reorganized or newly created internal intelligence service. Neighbors are
asked to report on neighbors, people disappear with—as of this writing—
no rights to lawyers. Torture of suspects is openly discussed, obviously
practiced, but not admitted. We must remember that the overwhelming
masses of the German people were not targeted, were instead told that it
was they under threat, and it was not until Fascism was defeated that the
excesses and abuses of other people—very similar to the abuses of other
societies and other cultures we are addressing—were exposed.
a As proof that the fear was of an expansion of rights for the people, not the fear that
Napoleon wanted to rule the world, the Napoleonic Codes spread throughout Europe
triggered the slow collapse of Feudalism and those democratic codes are the foundation laws
of over 30 countries today.
How a “Free” People with A “Free” Press are Propagandized 85
Notes
1 United Nations Human Development Report, 1998.
2 Peter Coleman, Liberal Conspiracy (London: Collier Macmillan Publishers), check dustjacket;
Frances Stoner Saunders, The Cultural Cold War: The CIA and the World of Arts and Letters
(New York: The Free Press, 1999).
3 Saunders, The Cultural Cold War, pp. 1-3, 197.
4 Saunders, The Cultural Cold War, pp. 1-3, 37, 60-63, 68, 71, 91, 101-39, 142, 150-51, 166, 201,
206, 245, 294-99, 353-58, 382, 402-403, 409-411, 420, check the dustjacket for names;
Angus MacKenzie, Secrets: The CIA's War at Home (Berkeley: University of California Press,
1997), pp. 2, 29, 40, 61-72, 185; See also, Coleman, Liberal Conspiracy.
5 Ibid, David Kaplan and Michael Schaffer, “Losing the Psywar,” U.S. News & World Report
2003), p. 135.
7 Sally Covington, “Right Thinking, Big Grants, and Long Term Strategy: How Conservative
Philanthropies and Think Tanks Transform U.S. Policy,” CovertAction Quarterly (Winter
1998), pp. 6-16; see also Saunders, Cultural Cold War, pp. 116, 135, 138-39, 142, 353-58, 409.
8 Ibid. also Greg Palast, The Best Democracy that Money can Buy (London: Penguin Books, 2003).
9 Alex Carey, Taking the Risk Out Of Democracy: Corporate Propaganda versus Freedom and Liberty
12 Robin W. Winks, Cloak and Gown: Scholars in the Secret War, 1939-1961 (New York: Quill,
14 Coleman’s Liberal Conspiracy, especially Appendix D, lists almost 200 of these thought control
books; Saunders, The Cultural Cold War, pp. 60, 63, 111, 140, 294-96, 105-106; & endnote 15.
15 The history of America’s state terrorism worldwide is deeply hidden and most records have
been destroyed. (Witness Bamford’s exposure on how General Lemnitzer destroyed the
records on the Pentagon’s plans for staging an attack on America, which included American
deaths, to create an excuse to overthrow Fidel Castro of Cuba.) Run a Google/Nexus-Lexus
Internet search using various keywords and these authors. The following books provide a
good view of that history: Chalmers Johnson, The Sorrows of Empire: Militarism, Secrecy, and the
End of the Republic (New York: Metropolitan Books, 2004); Clara Nieto, Masters of War: Latin
America and U.S. Aggression (New York: Michel Chossudovsky The Globalization of Poverty and
the New World Order 2nd edition (Ontario: Global outlook, 2003); Samantha Power, “A
Problem from Hell”: America and the Age of Genocide (New York: Basic Books, 2002); Franken,
Al, Lies and the Lying Liars who tell them; A Fair and Balanced Look at the Right (New York:
Penguin, 2003); Jones, Dorothy N., Toward a Just World (Chicago: University of Chicago
Press, 2002); Hartmann, Thom, Unequal Protection: The rise of Corporate Dominance and the Theft
of Human Rights (Mythical Research Inc, 2002); Mearsheimer, John J., The Tragedy of Great
Power Politics (New York: W.W. Norton, 2001; Mead, Walter Russell, Special Providence:
American Foreign Policy and How it Changed the World (UK: Routledge, 2002); Chang, Nancy,
Silencing Political Dissent: How September 11 Anti-Terrorism Measures Threaten Our Civil Liberties
(New York: Seven Stories Press, 2002); Austin Murphy, The Triumph of Evil: The Reality of the
USA’s Cold War Victory (Italy: European Press Academic Publishing, 2000; James Bamford,
Body of Secrets: Anatomy of the Ultra-Secret National Security Agency (New York: Doubleday,
2001), especially pp. 70-75; John Quigley, The Ruses for War: American Interventionism Since
World War II (Buffalo: Prometheus Books, 1992); L. Fletcher Prouty, The Secret Team
86 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Origins (New York: Doubleday & Company, 1961); Milton Mayer, They Thought They Were
Free (Chicago: University of Chicago Press, 1955).
To understand financial and economic warfare, read Peter Gowan, The Global Gamble:
Washington’s Faustian Bid for World Dominance (New York: verso, 1999); John Gray, False Dawn
(New York: The Free Press, 1998); Robert A. Pastor, Ed., A Century’s Journey: How the Great
Powers Shape the World (New York: Basic Books, 1999); Anders Stephanson, Kennan and the
Art of Foreign Policy (Cambridge: Harvard University Press, 1989); David Mayers, George
Kennan and the Dilemmas of US Foreign Policy (New York: Oxford University Press, 1988); John
R. Commons, Legal Foundations of Capitalism (New Brunswick/London: Transaction
Publishers, 1995); John R. Commons, Institutional Economics (New Brunswick/London:
Transaction Publishers, 1995); Carey B. Joynt and Percy E. Corbett, Theory and Reality in
World Politics (Pittsburgh: University of Pittsburgh Press, 1978); Richard L. Rubenstein, The
Age of Triage (Boston: Beacon Press, 1983); Peter Rodman, More Precious than Peace (New
York: Charles Scribner & Sons, 1994); Angelo Codevilla, Informing Statecraft (New York: The
Free Press, 1992); Arie E. David, The Strategy of Treaty Termination (New Haven: Yale
University Press, 1975); Francis Neilson, How Diplomats Make War (San Francisco: Cobden
Press); Jerry Fresia, Toward an American Revolution: Exposing the Constitution and Other Illusions
(Boston, South End Press), 1988.
For an understanding that internal assassinations are carried out and for a view of self-
censorship by the media on national security issues, as described in this chapter, read Mark
Lane, Plausible Denial: Was the CIA Involved in the Assassination of JFK? (New York: Thunder
Mouth Press, 1991) and Claudia Furiati, ZR Rifle: The Plot to Kill Kennedy And Castro.
(Melbourne: Ocean Press, 1994).
For how the purpose of Western intelligence services is to control the belief systems of its
citizens, and how much of the violence are covert operations to maintain this control, read
L. Fletcher Prouty, JFK: The CIA, Vietnam, And the Plot to Kill Kennedy (New York: Carol
Publishing, 1992) and Philip. Willan, Puppetmasters: The Political Use of Terrorism in Italy
(London: Constable, 1991), provides a short description of how strategies-of-tension are
used worldwide to control beliefs and thus control elections. Alex Carey’s Taking the Risk out
of Democracy; Corporate Propaganda versus Freedom and Liberty (Chicago: University of Illinois
Press, 1995) is an in-depth analysis of corporate propaganda pushed through the
government, media, and academia throughout the 20th century.
16 Dean Acheson, Present at the Creation (New York: W.W. Norton & Company, 1987), pp. 373-
379; the complete NSC-68 document can be found in Thomas H. Etzold and John Lewis
Gaddis, Containment: Documents on American Policy and Strategy, 1945-50, (New York: Columbia
University Press, 1978), Chapter 7. See endnote 15.
17 Acheson, Present at the Creation p. 377; Etzold and Gaddis, Containment, Chapter 7.
Containment.
21 Stone, Hidden History; Coleman, Liberal Conspiracy; Saunders, The Cultural Cold War; Ellen
Schrecker, No Ivory Tower: McCarthyism in the Universities. New York: Oxford University Press,
1986; Etzold and Gaddis, Containment, Chapter 7.
22 See endnote 15. Also Check way back in The New Republic.
23 William Blum, Rogue State, Chapter 4; Willan, Puppetmasters , Chapters 1-3, pp. 146-159;
Thomas, Very Best Men, pp. 65-66; David A. Yallop, In God's Name (New York: Bantam
Books, 1984); Saunders, The Cultural Cold War, p. 143; See endnote 15. See also Prouty, JFK,
Chapter 3 and Blum, Rogue State, Chapters 4 and 16.
88 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
expanded 3rd edition (www.ied.info/: The Institute for Economic Democracy, 2003),
Chapter 6, citing MacKenzie, Secrets, pp. 2, 4-6, 27, 29-41; Michael Parenti, History as Mystery
(San Francisco: City Lights Books, 2000), pp. 178, 183-89; Holly Sklar, Washington’s War on
Nicaragua (Boston: South End Press, 1988), p. 359; Rositzke, CIA's Secret Operations, pp. 218-
20; Powers, Man Who Kept the Secrets, pp. 246-70, 364; Angus MacKenzie and David Weir,
Secrets: The CIA's War at Home (University of California Press, 1997); M. Wesley Swearingen,
FBI Secrets: An Agent's Exposé (Boston: South End Press, 1995); Ward Churchhill, Cointelpro
Papers: Documents from the FBI's Secret Wars Against Domestic Dissent (South End Press, 1990);
Margaret Jayko, FBI on Trial: The Victory in the Socialist Workers Party Suit against Government
Spying (New York: Pathfinder Press, 1989); Nelson Blackstock, Cointelpro: The FBI's Secret
War on Political Freedom (New York: Anchor Foundation, 1988); Margaret Jayko, FBI on Trial:
The Victory of the Socialist Workers Party Suit Against Government Spying (New York: Pathfinder
Press, 1989): Nelson Blackstock, Cointelpro: The FBI’s Secret War on Political Freedom (New
York: Anchor Foundation, 1988); Ward Churchhill, Agents of Repression : The FBI's Secret Wars
Against the Black Panther Party and the American Indian Movement (Boston South End Press,
1989); Martin Luther King Jr, Philip S. Foner, editor, The Black Panthers Speak (New York:
Da Capo Press, 1995); Hugh Pearson, The Shadow of the Panther: Huey Newton and the Price of
Black Power in America (Readings, MA: Perseus Press, 1995); Blum, Rogue State, Chapter 4 and
pp. 258-59. The full story of Post World War II suppression of dissent in America has not
been written yet. Stephen M. Kohn, American Political Prisoners: Prosecution under the Espionage
and Sedition Acts (Westport: Praeger Publishers, 1994), covers that history before and after
WWI. Also see above endnote.
27 Lane, Plausible Denial, pp. 239-323, especially 320-22.
28 William F. Pepper, An Act of State, pp. 11, 15, 65, 76, 107.
29 Ibid, p. 127.
31 Ellen Schrecker, No Ivory Tower (New York: Oxford University Press, 1986).
32 Edward Burman, The Inquisition: Hammer of Heresy (New York: Dorset Press, 1992); Henry
Charles Lea, The Inquisition of the Middle Ages (New York: Citadel Press, 1954), a
condensation of his 1887 three-volume monumental work, A History of the Inquisition of the
Middle Ages.
33 Charles G. Addison, The Knights Templar (London: Longman, Brown, Green, and Longman,
1842), pp. 194-203, especially p. 203. See also Burman, Inquisition, pp. 95-99; James Burnes,
The Knights Templar (London: Paybe and Foss, 1840), pp. 12-14; and Stephen Howarth’s
Knights Templar (New York: Dorset Press, 1982).
34 David Caute, The Great Fear (New York: Simon and Schuster, 1978), pp. 18-19; Heiko
Oberman, The Roots of Anti-Semitism (Philadelphia: Fortress Press, 1984); Barnet Litvinoff,
The Burning Bush (New York: E.P. Dutton, 1988); Arkon Daraul, A History of Secret Societies
(Secaucus, NJ: Citadel Press, 1961); Richard Hofstadter, The Paranoid Style in American Politics
(Chicago: University of Chicago Press, 1979), pp. 10-11; James and Suzanne Pool, Who
Financed Hitler? (New York: Dial Press, 1978); David H. Bennet, The Party of Fear (London:
University of North Carolina Press, 1988), pp. 23-26, 205-06.
35 David Fromkin, A Peace to End all Peace (New York: Avon Books, 1989), pp. 468-69; Michael
Kettle, The Allies and the Russian Collapse (Minneapolis, University of Minnesota Press, 1981),
p. 17. F.L. Carsten, The Rise of Fascism (Berkeley: University of California Press, 1982), pp. 24,
29, 118. 184; Pool and Pool, Who Financed Hitler, pp. 3, 23, Chapter 3.
The Periphery of Empire Could not Be Permitted Their Freedom 89
aThis policy was undertaken under National Security Council Directive 68 (NSC-68) only
one year before Iran became free. The CIA admitted in the Church Committee hearings in
1975-76 that under this policy they had orchestrated fifty major covert operations, and
thousands of minor ones. In cases like Iran, Chile, Brazil, Indonesia, Nicaragua, etc., local
governments had reclaimed their wealth from foreign control. Under the Cold War master
plan, NSC-68, the CIA overthrew those popular, democratically elected, governments and
regained control of those resources and markets for foreign corporations.
90 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
aInstead of buying developed world capital or building industry (capital) for all Arabs, much
of this money was deposited in U.S. and European banks and lent to the developing world.
If the Arabs had built industry, their cheaper raw material, fuel, and labor would have
assured the capture of much of the current market and destroyed any industry that once
serviced that segment of the market. Iran, Libya, and Iraq became free from direct control,
were taking control of their resources and destiny as just described, and thus became pariah,
rogue states and efforts to embargo them from world trade are on-going yet today.
Though other excuses have been given or created, this almost certainly would, and did,
precipitate an attack to protect the current owners of capital: the Persian Gulf War. Iraq had
ambitious economic development plans and with the control of Kuwaiti oil might have been
strong enough to have federated and developed the entire Arab bloc.
The control of the price of oil by the West since the formation of OPEC has been
highly successful. The price of gas in 1950 was about 22 cents a gallon. Allowing for
inflation, a comparable price when the Persian Gulf crisis arose was officially acknowledged
to be $2. As it was around $1.24 a gallon both before and after the Persian Gulf crisis, this
demonstrates a lowering of the price about 38% and the risk of that loss of control was
certainly a major factor in the Persian Gulf War and the primary reason for the 2003
overthrow of Saddam Hussein in progress as this is written. By gaining control of Iraqi oil
America will have gained control of the pricing of oil, will bring the price down below $30 a
barrel and, it is hoped, will again rescue the imperial centers from an impending economic
collapse. In contrast to most destabilizations of progressive governments, Iraq’s Saddam
Hussein is a dictatorial and violent ruler and thus easy to demonize.
There were further reasons for that 12-year war, one being a parallel with losing Iran
when its oil labor went on strike. With almost half of Kuwaiti and Saudi Arabian labor being
imported (and politically untrustworthy) Palestinians and Yemeni, the risk of the Arabs
reclaiming control of their oil (meaning their destiny) was enormous. Bringing weapons of
mass destruction—nuclear, chemical, and biological—under control was also a very high
priority for this threatening war. We can anticipate that this control of military potential will
expand to other emerging nations.
92 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
The Iran-Iraq War started while those hostages were being held. The
CIA’s Mighty Wurlitzer was telling the American people the Soviet Union
was backing Iraq. But when the Iraqis gassed their own Kurdish population
(it is possible Iran did that, run a Google/Nexus-Lexus search) a U.S.
senator angrily fumed on national news, “We have $800-million of arms in
the pipeline to Iraq and we should cancel it all.”
With the surfacing of that piece of hidden history (and other tidbits),
simple common sense tells us that any imperial nation would pursue every
option to damage a nation that was holding their citizens hostage and Iraq
was surely coached into that invasion with the promise of backing for their
claim of title to the oil fields right across its borders. With the entire “free”
world behind them and Iran in turmoil, Iraq would have felt assured of
success.
Even though they were arming Iraq, America wanted neither side to
win. To prevent a win by either nation, satellite intelligence was provided to
whichever side was threatened with losing territory. In its nine years, that
war cost between 500,000 and 1-million dead, possibly 1.5-million
wounded, and 2.5-million refugees.
Before the early 20th-Century subdivision of the Middle East Kuwait
was a province of Iraq. Badly bruised from the Iran/Iraq war, upset about
Kuwait’s horizontal, cross-border, drilling stealing oil from Iraq, and feeling
America was now its friend after its immense support in providing arms for
that war, Iraq moved to bring her lost province back into the fold. This led
to the 1991 Gulf War in which 200,000 were killed in Iraq, destruction of
her industry and infrastructure, a 12-year embargo in which another million
Iraqis died.
After other cover stories were blown, the 2003-05 war with Iraq is said
to install a “democratic” government. But we must remember that
democratic in this context means a government subservient to the West.
What were the various reasons for the Iraq’s war?
1 Iraq, Iran, and Libya would control their own oil, use that wealth for
the benefit of their citizens, and other countries would notice their
gains as they broke free.
2 Those nations were rapidly industrializing. If there is anything we
have learned it is that capital does not tolerate an opposing center of
capital arising.
3 Eleven percent of the world’s oil is in Iraq. President Bush and Vice
President Cheney are oil men and America’s and Britain’s current
exclusion from Iraqi oil fields would end.a
a We want to remember that U.S. Copper companies were complicit in the U.S. overthrow
of the Chilean revolution, oil companies were complicit in overthrowing Mossadeq in Iran,
United Fruit was behind the overthrowing of the Guatemalan revolution, and these known
instances can only be the tip of the iceberg. The U.S. military and American lives are directly
94 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
protecting the wealth and power of America’s corporations and they are impoverishing the
rest of the world in the process.
The Periphery of Empire Could not Be Permitted Their Freedom 95
Containing Vietnam. While the Vietnam War was raging, the majority
of Americans were deeply patriotic and supportive. Yet not many today
believe America had any honest reason for that war. Three million
Vietnamese, Laotians, and Cambodians died fighting for the same reason
Americans fought their Revolutionary War; for freedom. Four million died
when one counts those killed by the French before the U.S. took over that
a Under this system of the majority take all and, since a dissident vote rarely has any impact,
minorities are essentially unrepresented. At the very best, they are far underrepresented. As
America’s Democratic Party and Republican Party are financed by the same wealthy
interests, they are essentially one party. So America has a one-party government
masquerading as a democracy.
96 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Among the 3,197 innocents (a figure far too low) officially killed by
Pinochet’s forces were Americans, Spanish, and a few other nationalities.
A Spanish judge charged Pinochet with killing 300 Spanish citizens.
This state terrorist avoided extradition. But the acknowledgment of most
countries of the legality of extradition to stand trial for other even more
heinous crimes has curbed the travels of many powerful people, including
some Americans.15 A Chilean Supreme Court judgment of mental
incompetency avoided a trial in Chile. As the political power slowly changed
so did the Supreme Court decisions change and as this is written he is under
house arrest awaiting trial.
Containing El Salvador. El Salvador never did break free but fought hard to
do so from 1980 through 1992. As in Guatemala, the US-backed elite’s
desperation to prevent democracy from functioning was brutal. When several
tortured bodies a week show up in the El Salvador dump with their thumbs
wired behind their back, the trademark of the death squads, and there is no
attempt by officials to find their killers, one can be sure the U.S. backed El
Salvador government was behind it. There were over 70,000 deaths from security
forces armed and advised by the U.S. military and another 7,000 killed by death
squads orchestrated by the same advisors.16 The 2005 quagmire in Iraq leading
the Pentagon to again use death squads and calling it “the Salvador option”
openly acknowledges all we have laid out here (keywords: Salvador option,
Reagan, let a thousand militias bloom, A.K. Gupta). Newly formed private
militias established, armed, and funded by the Pentagon are those death squads.
the Popular Movement for the Liberation of Angola (MPLA) and that this
group was, “best qualified to run Angola; nor [were they] hostile to the
United States.” Obviously the political and economic shattering of Angola
was the purpose of supporting Savimbi, not the establishment of a
functional friendly government.18
Newly free Mozambique endured a massive terror campaign
orchestrated by the apartheid South African government. The frontline
states of Zambia, Namibia, Zimbabwe, and Botswana faced similar
destabilizations.19 (Documentary, Wind of Change, Films for Humanity &
Sciences 800.257.5126, item # BVL30750.)
The Congo is immensely rich in minerals. There was no way to prevent
the popular Patrice Lumumba from being their elected leader so he was
assassinated by the CIA. Still the Congo could not be controlled so the
province of Zaire, with most the mineral wealth, was carved off and Joseph
Mobutu was installed as the Belgian/American puppet where he proceeded
to send billions of dollars out of the country to his private bank accounts.20
Of course for every billion dollars Mobutu stole from the Congo many tens
of billions of dollars of mineral wealth was transferred to the imperial-centers-
of-capital.
After WWII, most of Africa was planning on federating as the United
States of Africa. The destabilization of these immensely resource-wealthy
emerging nations left many millions dead, impoverished the entire region,
and that battle to control the immense wealth of Africa with huge loss of
life is ongoing yet today.
Containing Cuba. Fidel Castro’s 1959 victory over the American puppet
General Batista created a crisis for American managers-of-state. Castro was not
communist but he was free to guide the destiny of Cuba, which is always a
problem for an imperial nation. Embargoes were immediately put in place
and this forced Castro to turn to the Soviet federation for support. Cuba’s
economy grew rapidly and her average education level may now lead the
world. Of course, this only heightened the crisis. A successful emerging
nation not under the control of the imperial center would alert all
dependent nations to take control of their governments, their resources,
and their destiny.
A total embargo was imposed and no corporation from any nation that
did business with Cuba could do business with America. Any ship which
docked at a Cuban port was denied rights to dock at any American port.
Cane fields were both infected with fungus and burned, tobacco was
infected with mildew, potatoes were infected with Thrips-palmi, 500,000
pigs infected with African swine fever had to be destroyed, Cubans were
infected with dengue fever of which 158 died, and a Cuban airliner with
The Periphery of Empire Could not Be Permitted Their Freedom 99
Cuba’s champion fencing team downed over the ocean were only a part of
the covert efforts to destabilize Cuba.a
There have been enough Cuban dissidents admitting to this sabotage
that few will challenge this record. The full story is much larger. This author
watched a news broadcast interviewing one of these saboteurs. He bragged
about over 50 forays into Cuba, one in which he sabotaged a train on a
trestle and watched it go into the ravine like in the movies.
The reader should note that, until the terrorist attack on the World
Trade Center and anthrax spread through the mail, no one was blowing up
American or European trains and refineries, no one was burning American
or European grain fields, no one poisoned 7,000 dairy cattle in the West
such as was done to East Germany, and no one was practicing germ and
crop warfare against the West. (This is a very short list of a very long history
of worldwide terrorism to maintain control of the periphery of empire.)
In short, the truth is exactly apposite of what the CIA’s Mighty Wurlitzer
has propagandized the world to believe. No countries were attempting to
overthrow Western nations; it is the rest of the world that was under assault
by the West for the purpose of controlling their governments, their
resources, and the wealth-producing-process.
a Newly released CIA documents alerted researchers that crop warfare was practiced against
a number of impoverished countries. James Bamford, Body of Secrets: Anatomy of the Ultra-Secret
National Security Agency (New York: Doubleday, 2001), pp. 70-75, especially p. 82, describes
how several plans for faking a Cuban attack on Americans to justify an invasion of Cuba.
Several of these plans meant the death of American citizens. President John F. Kennedy
would not approve any of those plans. Shortly later General Lyman Lemnitzer was
transferred to Europe, a major demotion from Chairman of the Joints Chief of staff. Shortly
after that, CIA director Allen Dulles was fired. Soon after, Kennedy was assassinated. More
on biological warfare in: Blum, Rogue State, Chapters 3 through 10; Stephen Endicott and
Edward Hagerman, The United States and Biological Warfare: Secrets from the Early Cold War and
Korea. Bloomington, IN: Indiana University Press, 1998; Minnick, Spies and Provocateurs,
especially p. 262; R. Ridenour, Back Fire: The CIA's Biggest Burn (Havana, Cuba: Jose Marti
Publishing House, 1991), especially pp. 73, 77-78, 145-49; Garwood, Under Cover, especially
p. 92; P.V. Parakal, Secret Wars of the CIA (New Delhi: Sterling Publishers, 1984); Prados,
Presidents Secret Wars, 1996 ed., pp. 333, 337, 349; Prados, Keepers of the Keys, especially pp. 142-
44, 203-317; D. Corn, Blond Ghost: Ted Shackley and the CIA's Crusades (New York: Simon &
Schuster, 1994); J.T. Richelson, The U.S. Intelligence Community (Cambridge, MA: Ballinger
Publishing Company, 1985), especially p. 231; R. S. Cline, Secrets, Spies, and Scholars
(Washington, DC: Acropolis Books, 1976), especially p. 195; P. Wyden, Bay of Pigs, the Untold
Story (New York: Simon and Schuster, 1979); D. Martin, Wilderness of Mirrors (New York:
Harper & Row, 1980), especially pp. 151-53; Ranelagh, Agency, especially pp. 356-60; G.
Treverton, Covert Action, The Limits of Intervention in the Postwar World (New York, NY: Basic
Books, Inc., Publishers, 1987); L.F. Prouty, The Secret Team (Englewood Cliffs, NJ: Prentice-
Hall, 1973); Borosage and Marks, CIA File; Hersh, Old Boys; Thomas, Very Best Men; Jeffreys-
Jones, R., The CIA & American Democracy (New Haven: Yale University Press), 1989; B.
Watson, S. Watson, and G. Hopple, United States Intelligence: An Encyclopedia (New York:
Garland Publishing, 1990); Covert Action Information Bulletin; Counterspy; McGehee’s CIABASE
(Caution: Run an Internet search for Ralph McGehee. The CIA is harassing him and may be
sabotaging his database.).
100 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
financial and economic weapons today are weaker and her military options
are shrinking, we can be sure those efforts to retain control will be made.
a Historians should look close the anthrax scare after 9/11/2001. Those anthrax spores were
proven to be biologically identical to that produced at the U.S. germ warfare facility at the
Dugway Proving Grounds in Utah. John Pilger stated in the New Statesman, December 16,
2002, that America’s leading powerbrokers spoke of “needing “some catastrophic and
catalyzing event—like a new Pearl Harbor”—so as to gain the loyalty of the American
people for their violent foreign policy. Coming from the bio-war lab at fort Dietrich, the
source of that anthrax is not in dispute. The probability is very high that propagandists took
advantage of the 9/11/2003 terrorist attack to further their strategies-of-tension to maintain that
loyalty. Run Google/Nexus-Lexus Internet searches using the many keywords on this page.
b Though we are providing key citations, read the author’s previous work, Economic Democracy:
The Political Struggle for the 21st Century, expanded and updated 4th edition, for the full story.
102 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Korea would rejoin as one nation. So there was nothing to lose by going to
war and there was a whole world to retain control of through
remilitarization to suppress the world’s break for freedom.
As proven by the accidental release to history of a conversation within
General Douglas MacArthur’s staff, and the fact that it took three days for
the North Koreans to push the South Koreans out of Heiju, north of the
38th parallel and well into North Korea’s territory, it was South Korea that
started that war.23
The battle was very unequal; 35,000 Americans were killed while 4-
million Koreans and Chinese perished and a whole nation was devastated.
As with the Gulf War, the Yugoslavian destabilization, the overthrow of the
Taliban in Afghanistan, or the 2nd Gulf War, there was no risk that America
was going to lose this war or even that their casualties would be high. This,
of course, is more proof that North Korea did not start that war. Why
would they start a war they were unprepared for and when the massive riots
in South Korea indicated the two halves of Korea were going to rejoin as a
free and independent nation? Peace was far more advantageous to North
Korea than war and war was the only way the imperial-centers-of-capital could
retain control.a
Though any battle is traumatic and the Americans, when pushed back
from the Yalu river by the Chinese, did then face a capable enemy, I.F.
Stone, our primary source, explains how many of the early battles in the
South were little more than press releases passed out by intelligence service
wordsmiths. American troops would make sweeps and were many times
searching for enemies they could not find. But those sweeps were recorded
in the media of record as vicious battles. If you or I had been the reporters,
we would have reported the same battles. After all, it was taken right off
U.S. army daily press releases.
But the relatively small number of Americans killed and the massive
numbers of North Koreans and Chinese killed tell the real story. While the
poorly equipped North Koreans and Chinese did suffer heavy casualties on
the front line, most of the 4-million were killed by America napalming
North Korea to the ground. There was hardly a building left standing in the
North which, until very late in the war, was totally defenseless against
America’s air force and navy. There were few war industries to bomb and
one wonders at the logic of military commanders ordering the bombing of
those undefended cities. The napalming of those modest homes accounts
for half the 4-million killed being women and children.
The essential story of the Korean War was that peace could not be
permitted until the entire Western world was psychologically programmed
to accept rearming to suppress breaks for freedom (called insurgencies) all
aThis author attended a workshop on a Kentucky army base hosted by that bases history
officer. The conclusions of my research were verified when he admitted “we suckered the
North Koreans into that war.”
The Periphery of Empire Could not Be Permitted Their Freedom 103
over the world. Each time peace seemed about to break out at the
Panmunjom peace negotiations, there would be a massive ground offensive,
air raid, a naval bombardment, or all three.
Besides fraudulent press releases distorting battles, history is
fraudulently written by omission of slaughters that do occur. The greatest
naval and air bombardment in history went unreported in the Western
Press as the navies of three countries and the American air force, bombed,
strafed, and shelled three defenseless North Korean port cities for 41
straight days and nights, all to tweak the nose of the North Koreans and
Chinese so they could not sign a peace agreement.24
Any signing under such pressure would have been a total surrender
and, with the Chinese now fighting the battle, neither the Chinese nor the
North Koreans were about to surrender. A peace agreement was not signed
until the West’s war machine was rebuilt to a level to successfully suppress
the worldwide breaks for freedom.
This is how strategies-of-tensions work. Powerful nations create crisis to
obtain the loyalty of their citizens for policies-of-state that would never be
accepted by that citizenry, or the world, if the full story were known.
Those falsified “frameworks of orientation” were successful. The entire
Western world rearmed, virtually all breaks for freedom, except Cuba’s and
China’s, were suppressed, the world’s resources remained under the control
of the imperial centers, control of the wealth-producing-process is secure, or at
least was secure, and the world’s wealth continued to flow to the imperial-
centers-of-capital.
Though the old imperial nations supported these destabilizations,
occasionally very substantially, the suppression of the world’s break for
freedom was carried out primarily by America. Not even those being
bombed and napalmed could believe America was doing this and of course
American citizens would never believe it.
Not only is the truth of current violent history kept secret, the violent
and embarrassing aspects of early history are also ignored. What must be
understood is that early Christians violently destroyed other religions and
even other peaceful Christian sects. It has been survival of the meanest. In 1099
the first Crusaders sacked Jerusalem and massacred Muslims, Jews, and
even Christians. When the Muslim leader Saladin retook Jerusalem in 1187,
none were killed when the Christians surrendered and protection was
provided for the departing caravans of refugees.25
Earlier, in 324 AD, Emperor Constantine allied with the Christian
church. That alliance destroyed its first Roman culture centers and libraries
in 326 AD. Over a period of 266 years, that alliance of church and state
destroyed every culture center and library in the Roman empire, executed or
forced underground all who were educated, and suppressed all education.
Without an educated population the once prosperous Western culture
104 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
dropped into the 900 years of the Dark Ages (keywords: libraries, burned,
Christian).
Among the knowledge of the world stored in the Library of Alexandria
(destroyed twice, 391 and 641 AD) was an operating steam engine. An
artifact dating back to those times, it was decided, “had to be a battery.”
Steam power and electricity were the crucial inventions out of which grew
the Industrial Revolution. Thus that alliance of church and state delayed the
use of trains, cars, planes, telephones, radios, and television for over a
thousand years.a
Other cultures are under assault today by the West’s alliance with
Christianity just as competing cultures were once under the assault of the
alliance of Rome and Christianity. Though it has ebbed and flowed and
governments have changed, that alliance has held for 1700 years. With their
natural wealth and the production of their labors appropriated by Western
societies, other cultures cannot provide a quality life to their people.
Through processing the world’s natural wealth into industries and
consumer products the aggressive wealthy world is able to provide both
economic rights and political rights to their citizens. The very weapons of
war that maintain the suppression of weak cultures are produced from the
resources of the countries being maintained in dependency.
With U.S. military forces in 130 countries around the world 14 years
after the Cold War is over, with America spending more on arms than the
next 15 largest military powers, and with most those powers allied with the
U.S., it is impossible for America to deny it is an empire or that, with their
military and trading allies, they form an allied imperial-center-of-capital. Those
covert and overt suppressions of the breaks for freedom on the periphery
of empire as America protected the wealthy world’s access to resources and
the wealth-producing-process, violently killing millions and destroying entire
economies, was wholesale terrorism and these battles threaten civilization just
as did the struggles between cultures for millennia.b
The battle over resources and control of the wealth–producing-process is
never ending. Imperial nations have a desk analyzing every nation and every
a The same policies destroyed Aztec temples and cultures and other cultures as Christianity
spread across the world. Only heavily populated and advanced societies could absorb the
blows of an expanding Christian/Western culture. Older cultures are absorbing cultural and
military blows from Western culture yet today and those struggles are delaying the
advancement of social technologies just as 1,400 years ago the efficiencies of science was
delayed. Increasing economic efficiency equal to the invention of money, printing, and
electricity is the advancement in social technology that is possible if today’s powerbrokers
would abandon their competing culture for democratic-cooperative-(superefficient)-capitalism.
b A Google/Nexus-Lexus search on the Internet using the key words Truth Commissions
and Institute of Peace Library will come up with Truth Commissions for 24 besieged
countries. Most are further examples of suppression of a country’s control of their own
destiny beyond those we discuss in this volume.
The Periphery of Empire Could not Be Permitted Their Freedom 105
Notes
1 Amir Taheri, Nest of Spies (New York: Pantheon Books, 1988), chs. 1-3, esp. pp. 22, 32-40.
2 Darrell Garwood, Under Cover: Thirty-Five Years of CIA Deception (New York: Grove Press,
1985), pp. 198-200; William Blum, The CIA: A Forgotten History (New Jersey: Zed Books
Ltd., 1986), pp. 67-76.
3 Taheri, Nest of Spies; Richard Labeviere, Dollars for Terror: The United States and Iran (New York:
Algora Publishing, 2000), p. 44; Burton Hersh, The Old Boys: The American Elite and the Origins
of the CIA (New York: Charles Scribner's Sons, 1992), 330-34; Kermit Roosevelt, Countercoup:
The Struggle for the Control of Iran (New York: McGraw-Hill 1979): C. Andrew, For the
President's Eyes Only: Secret Intelligence and the American Presidency from Washington to Bush (New
York: HarperCollins Publishers, 1995), pp. 203-05; McGehee, CIABASE.
4 Garwood, Under Cover, p. 200; Stephen Rosskamm Shalom, Imperial Alibis (Boston: South
1990-91): p. 7.
6 Jeremy Rifkin, Biosphere Politics (San Francisco: HarperCollins, 1992), p. 125.
http://www.ratical.org/ratville/CAH/RRiraqWar.html.
9 Anthony Arnov, Iraq Under Seige: The Deadly Impact of Sanctions and War (Cambridge: South End
Press, 1997); Said K. Aburish, A Brutal Friendship: The West and the Arab Elite (New York: St
Martin’s Press, 1997).
10 Milan, Rai, Regime Unchanged (Sterling: Pluto Press, 2003); Solomon, Norman, Target Iraq:
What the News Media Didn’t Tell you (New York: Context Books, 2003); Ali, Tariq, Bush in
Babylon: The Recolonization of Iraq (New York: Verso, 2003); Hiro, Dilip, Secrets and Lies:
Operation Iraqi Freedom and After, A Prelude to the Fall of U.S. Power in the Middle East (New
York: Nation Books, 2004); Ali, Tariq, The Clash of Fundamentalisms: Crusades, Jihads and
Modernity (New York: Verso, 2002); Briody, Dan, The Iron Triangle: Inside the Secret World of the
Carlyle Group (Hoboken, Wiley and Sons, 2003); Ivins, Molly, and Lou Dubose, Bushwhacked:
Life in George Bush’s America (New York: Random House, 2003); Chossudovsky, Michel, War
and Globalization: The Truth Behind September 11(Shanty Bay, Ontario: Global Outlook, 2002);
Larry Everest, Oil, Power, and Empire: Iraq and the U.S. Global Agenda (Common Courage
Press, Monroe, 2004); Lutz Kleveman, The New Great Game: Blood and Oil in Central Asia
(New York: Atlantic Monthly Press, 2003); Kevin Phillips, American Dynasty: Aristocracy,
Fortune, and the Politics of Deceit in the House of Bush (New York: Penguin Books, 2003);
Christopher Scheer, Robert Scheer, and Lakshmi Chaudhry, The Five Biggest Lies Bush Told us
About Iraq (Seven Stories Press, 2003); Chomsky, Noam, 9-11 (New York: Seven Stories
Press, 2002); Zinn, Howard, Terrorism and War (New York: Seven Stories Press, 2002);
Parenti, Michael, The Terrorism Trap: September 11 and Beyond (San Francisco: City Lights
Books, 2002); Bill Powell, “Iraq We Win, Then What, Fortune November 5, 2002, pp. 61-72;
Dan Morgan and David B Ottaway, “In Iraqi Oil Scenario, Oil is Key Issue: U.S. Drillers
Eye Huge Petroleum Pool” (Washington Post , September 14, 2002); Scott Peterson, “In War
106 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Some Facts less Factual” (Christian Science Monitor September 6, 2002), p. 1; Neil Mackay,
“Bush Planned Iraq ‘Regime Change’ Before Coming President,” The Sunday Herald
(Scotland, September 15, 2002); see also Milan Rai, War Plan Iraq (London: Verso Press,
2002); William Rivers Pitt, Scott Ritter, War on Iraq (New York: Context Books, 2002).
11 Dan Murphy, “Indonesia Confronts Unruly Past” (The Christian Science Monitor,
November 20, 2000), pp. 1, 10; William Blum, Rogue State: A Guide to the World’s Only Super
Power. Monroe, ME: Common Courage Press, 2000), Chapter 17; Philip Agee, Inside the
Company, p. 9; .Steve Weissman, The Trojan Horse (Palo Alto: Ramparts Press, 1975); McT
Kahin, Subversion as Foreign Policy: The Secret Eisenhower and Dulles Debacle in Indonesia (New
York: New Press, 1995); Wendell Minnick, Spies and Provocateurs: A Worldwide Encyclopedia of
Persons Conducting Espionage and Covert Action, 1946-1991 (Jefferson, North Carolina:
McFarland, 1992), especially pp. 183-84; S.E. Ambrose, Ike's Spies (Garden City, New York:
Doubleday, 1981), p. 251; M. Caldwell, Editor, Ten Years Military Terror Indonesia
(Nottingham: Spokesmen Books, no date); Blum, The CIA, especially p. 221; search
databases for articles or books by Kathy Kadane, reporter for States News Service; see Chapter
3, endnote 15; McGehee, CIABASE .
12 John Stockwell, Praetorian Guard (Boston: South End Press, 1991), p. 78.
13 Dan Jacobs, The Brutality of Nations (New York: Alfred A. Knopf, 1987), especially p. 5.
14 Stephen Schlesinger and Stephen Kinzer, Bitter Fruit (New York: Anchor Press/Doubleday,
1984); Peter Grose, Gentleman Spy : The Life of Allen Dulles (Boston: University of
Massachusetts Press, 1996); United Nations Guatemalan Truth Commission Report carried
on AP wires February 25, 1999; Susanne Jonas, The Battle for Guatemala: Rebels, Death Squads,
and U.S. Power (San Francisco: Westview Press, 1991); P. Gleijeses, Shattered Hope: The
Guatemalan Revolution and the United States 1944-1954 (Princeton, NJ: Princeton University
Press, 1991); Beatriz Manz Refugees of A Hidden War: The Aftermath of Counterinsurgency in
Guatemala (New York: State University of New York, 1988); D.A, Phillips, The Night Watch
(New York: Atheneum 1977); Jean-Marie Simon, Guatemala: Eternal Spring Eternal Tyranny
(New York: W. W. Norton, 1988); Michael McClintock, The American Connection: State Terror
and Popular Resistance in Guatemala (London: Zed Books, 1985); B. Cook, The Declassified
Eisenhower; Thomas, Very Best Men; T. McCann, An American Company: The Tragedy of United
Fruit (New York: Crown Publishers, 1976); Andrew, For the President's Eyes Only; Eduardo
Galeano, Guatemala: Occupied Country (New York: Monthly Review Press, 1969); J. Heidenry,
Theirs Was the Kingdom: Lila and Dewitt Wallace and the Story of the Reader's Digest (New York:
W.W. Norton, 1993), pp. 594-97; CovertAction Quarterly; Counterspy; run library database
searches for anything written by Allen Nairn; Blum, The CIA; William Blum, Rogue State,
Chapters 3 through 10 and Chapter 17; and his book Killing Hope: U.S. Military Interventions
Since World War II (Monroe, Me: Common Courage Press, 1995); N. Miller, Spying for America
(New York: Paragon House, 1989); H.J. Hunt, Undercover: Memoirs of an American Secret Agent
(New York: Berkeley Publishing, 1974); McGehee, CIABASE.
15 Marc Cooper, Chile and the End of Pinochet,” The Nation (February 26, 2001), pp. 11-18; P.
War in El Salvador (U.N. Security Council, 1993); Charles Kernaghan, “Sweatshop Blues,”
Dollars and Sense (March/April, 1999); Blum, Rogue State, Chapter 17 and Killing Hope; Michael
The Periphery of Empire Could not Be Permitted Their Freedom 107
McClintock, The American Connection: State Terror and Popular Resistance in El Salvador (London:
Zed Books, 1985); Blum, The CIA, pp. 232-43; Dennis Volman, "Salvador Death Squads, a
CIA connection?" The Christian Science Monitor, May 8, 1984, p. 1; many issues of the
CovertAction Quarterly and Counterspy; Klare & Kornbluh, Low Intensity Warfare; Edward S.
Herman, F. Broadhead, Demonstration Elections: U.S. Staged Elections in the Dominican Republic,
Vietnam, and El Salvador (Boston: South End Press, 1984); Jonathan Kwitny, Endless Enemies:
The Making of an Unfriendly World (New York: Congdon & Weed, 1984); see Chapter 3,
endnote 15.
17 Blum, Rogue State, Chapter 17 and Killing Hope; William I. Robinson, A Faustian Bargain: U.S.
Intervention in the Nicaraguan Elections and American Foreign Policy in the Post-Cold War Era
(Boulder, CO: Westview Press, 1992); Peter Kornbluth, Nicaragua, The Price of Intervention:
Reagan’s War Against the Sandinistas (Washington, DC: Institute for Policy Studies, 1987);
Reed Brody, Contra Terror in Nicaragua: Report of A Fact Finding Mission: September 1984-January
1985 (Boston: South End Press, 1985); Garvin, G., Everybody Has His Own Gringo: The CIA
and the Contras (New York: Brassey's,1992); Paul Kennedy, The Rise and Fall of the Nicaraguan
Revolution (New York: New International, 1994); Peter Kornbluth and M. Byrne, The Iran-
Contra Scandal: The Declassified History (New York: A National Security Archive Documents
Reader, The New Press, 1993); Twentieth Century Fund, The Need to Know: The Report of the
Twentieth Century Fund Task Force on Covert Action and American Democracy (New York: The
Twentieth Century Fund Press, 1992); E. Chamorro, "Packaging the Contras: A Case of
CIA Disinformation." Institute for Media Analysis, Inc. Monograph Series Number 2 (New York,
Institute for Media Analysis, Inc, 1987); J. Adams, Secret Armies (New York: The Atlantic
Monthly Press 1987); Minnick, Spies and Provocateurs; John Prados, Keepers of the Keys: A History
of the National Security Council from Truman to Bush (New York: William Morrow, 1991); Loch
.K. Johnson, America's Secret Power (New York: Oxford University Press, 1989); C,D.
Ameringer, U.S. Foreign Intelligence (Lexington, MA: Lexington Books, 1990); H.B.
Westerfield, ed., Inside CIA's Private World: Declassified Articles from the Agency's Internal Journal
1955-1992 (New Haven, CT. Yale University Press, 1995); Tony Avirgan and M. Honey,
eds., Lapenca: On Trial in Costa Rica (San Jose, CA: Editorial Porvenir, 1987); J. Marshall, P.D.
Scott, and J. Hunter, The Iran-Contra Connection (Boston, MA: South End Press, 1987); P.V.
Parakal, Secret Wars of the CIA (New Delhi: Sterling Publishers, 1984); Christopher Simpson,
Blowback (New York: Weidenfeld & Nicolson, 1988); National Endowment for Democracy,
Annual Report; McGehee, CIABASE.
18 Blum, Rogue State, Chapters 3 through 10; John Stockwell, In Search of Enemies (New York:
W.W. Norton, 1978), especially pp. 43, 63-64, 272; Stockwell, Praetorian Guard; Jonathan
Kwitny, The Crimes of Patriots (New York: W. W. Norton, 1987); S. Gervasi and S. Wong,
“The Reagan Doctrine and the Destabilization of Southern Africa” (Unpublished paper from
McGehee's CIABASE, April 1990); Clarridge, A Spy for all Seasons; H. Rositzke, The CIA's
Secret Operations (New York: Thomas Y. Crowell Company, 1977); B. Freemantle, CIA (New
York: Stein and Day, 1983), p. 68.
19 Blum, Rogue State, Chapter 17; Gervasi and Wong, Reagan Doctrine, pp. 56-57; W. Minter,
Apartheid's Contras: An Inquiry into the Roots of War in Angola and Mozambique (London, ZED
Books, 1994).
20 Stockwell, In Search of Enemies, pp. 10, 105, 137, 169, 172, 236-37; Blum, Rogue State, Chapter
17; Sean Kelley, America’s Tyrant: The CIA and Mobutu of Zaire (Washington DC: American
University Press, 1993); D. Gibbs, The Political Economy of Third World Intervention: Mines, Money
and U.S. Policy in the Congo Crisis (Chicago, IL: University of Chicago Press, 1991); R. L.
Borosage, J. Marks, The CIA File (New York: Grossman Publishers, 1976); Gervasi and
Wong, Reagan Doctrine; Prados, Presidents Secret Wars; Kwitny, Endless Enemies; Blum, Killing
Hope; see Chapter 3, endnote 15;.
108 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
21 Fidel Castro, Capitalism in Crisis: Globalization and World Politics Today (New York: Ocean Press,
2000), p. 138; Nadia Marsh, M.D., “U.S. Med Students Arrive in Cuba,” The Workers’ World,
April 19, 2001.
22 James Bamford, Body of Secrets: Anatomy of the Ultra-Secret National Security Agency (New York:
Doubleday, 2001), pp. 70-91, especially p. 82; Linda Robinson, “What didn’t we do to get
rid of Castro,” U.S. News & World Report, October 26, 98, p. 41; Castro, Capitalism in Crisis,
p. 215-17; John Quigley, The Ruses for War: American Intervention Since World War II (Buffalo:
Prometheus Books, 1992).
23 I.F. Stone, The Hidden History of the Korean War (Boston: Little Brown and Company, 1952),
25 Andrew Curry, “The First Holy War,” U.S. News & World Report, April 8, 2002, pp. 36-42.
See also Barry Yeoman, “The Stealth Crusade,” Mother Jones, May/June 2002. An unrealistic,
but well organized, minority of Christians whose goal is to convert Muslims to Christianity.
A Large Segment of the World almost Broke Free 109
a Though we are providing crucial citations, this is a very short history. Check the author’s
previous work, Economic Democracy: The Political Struggle of the 21st Century, updated and
expanded 4th edition, Chapter 7 for the full story. Lloyd C. Gardner, Safe for Democracy (New
York: Oxford University Press, 1984), pp. 197-8; Philip Knightley, The First Casualty (New
York: Harcourt Brace Jovanovich, Publishers, 1975), Chapter 7; Mikhail Gorbachev,
Perestroika (New York: Harper and Row, 1987), p. 33, note 2; Edmond Taylor, The Fall of the
Dynasties (New York: Dorset Press, 1989), p. 359; Ernest Volkman, Blaine Baggett, Secret
Intelligence (New York: Doubleday, 1989), Chapter 1.
110 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
controlling the beliefs of a citizenry during the Cold War is nothing new,
America, Britain, and most of Europe were demonizing the Soviets ever
since their successful revolution.
The problem of the Russian Revolution was not incompetence; it was
that their system was super-competent. If it had been incompetent, there
would have been no threat and nothing to worry about. Due to that
intervention, it took Russia 12 years to rebuild to her pre-WWI industrial
level (3% percent that of America). But in the next 12 years Russian
industrial capacity matched Britain, soared well past France, Japan, and
Italy, and was then 25% that of the United States.3
We will leave it to the reader to muse on the fear created in Western
capitals at the Soviet federation’s rapid industrialization and how much that
had to do with the Second World War. Germany’s second in command,
Rudolf Hess, flying to England 43 days before Germany attacked the
Soviets can only have been to get plans for their containment and
overthrow back on track. When sentenced to life in prison, Hess had a 24-
hour-a-day guard and was not permitted to discuss anything beyond daily
events of family life. The secrets of the planned coordinated overthrow of
the were to die with him.4
The Soviet federation’s super competency is apparent from any honest
study of WWII. Russia moved her industry ahead of the German army, held
the Germans at the borders of Moscow for three years, and then attacked
with 5-times the manpower, 5-times the heavy armor, 7-times the artillery,
and 17-times the airpower as the Germans.5 The Germans were cleared
from half the occupied territory in six months. Obviously if the Soviets had
had just five more years to develop industrially (and remember the
Intervention and loss of prime industrial territory cost them at least 10
years) they would have been too strong for Germany to dare attack.
After the allies landed at Normandy on June 6, 1944, two German
Soldiers out of every three were on the Eastern Front. The allies were in
trouble during the Battle of the Bulge and, to take the pressure off, the
Soviets launched an all-out attack. The Germans rushed troops from the
Western Front to their Eastern Front to stem that offensive and there were
now seven German soldiers facing the Soviets for every one facing the
West.6
Had the Soviets collapsed, there was no foreseeable combination of
forces that could have dislodged those Germans from control of Europe
and control of Europe meant control of the world. They would have been
masters of all of Europe, Eurasia, and—through the colonial connections
and their immense military power—most of the world. From those
commanding heights, German power would have influenced governments
all over the world much as we have been describing America has done from
her commanding heights of economic, financial, and military power.
Instead of it being America who saved the world, the entire Western world
A Large Segment of the World almost Broke Free 111
and perhaps the entire world, owed the Soviet federation an enormous debt
for saving them against Hitler’s fascism.
Marshall Plan for American industry to quickly rebuild Europe went into
effect in 1948 and Europe was rebuilt in about five years.
With most of their natural resources under permafrost 3,000 miles
away, commodity production costs for the Soviets were roughly 1.8 times
those in America. Damaged far worse than Western Europe, forced to
produce arms to protect against the ring of steel being built around them by
the same countries that had attempted to overthrow their revolution, those
same nations loudly proclaiming they still should overthrow them, and
without a wealthy patron to rebuild their industry, it would take the Soviets
and Eastern Europe two generations to rebuild and, of course, they could
never equal the West with their highly-developed industry and cheap
resources all over the world under the firm control of that allied imperial-
center-of-capital.
Russian people were not so foolish as to throw away their wealth. But
Russian powerbrokers were given the opportunity to immediately own the
vast natural and industrial wealth of that nation. Shock therapy in Russia
compressed the 70 years of America’s age of the robber barons into 10
years and 50% of Russia’s GDP came under the control of what became
known as the “Russian Mafia.”16
These thieves sent the money out of Russia as fast as it came into their
hands. Thousands of homes were purchased with this money in Spain and
thousands more in France, Cyprus, Austria, and many other countries.
Purchasers of each of these homes had many times those values stashed in
overseas bank accounts. Thus, by the estimates of Fidel Castro, 200-billion
to $500-billion fled Russia in the decade of the 1990s (2-to-3 times other
estimates).17
Subversive funds flowed in through the collapsed Russian borders
(much of it came from the National Endowment for Democracy [NED]
and George Soros’ many destabilization foundations. Those funds were to
organize political parties and coordinate a media to promote Adam Smith
“free trade.”18) Heavily funded politicians won enough control to pass the
necessary laws, corrupt oligarchs, and gain title to valuable properties.
Massive amounts of consumer products produced in the West were sold to
Russian citizens to soak up and return to Western imperial-centers-of-capital even
the small amount of money created within that defeated nation.
To survive, whether they stay independent or reform as one federated
nation, those former Soviet provinces will have to limit access to both their
resources and their consumer markets. The wealth appropriation math
addressed in Chapter six makes this clear:
The pay differential between the defeated Russia and the victorious America
(23-cents an hour against $14 an hour), was a wealth accumulation potential in
favor of America of 3,600-to-1 while Germany’s higher wages ($23 per hour)
gave her a wealth accumulation advantage of 10,000-to-1.... Obviously the
Russian workers’ factory is essentially shut down, they are still being paid their
23-cents an hour, nothing is produced, and, on that basis, the formula appears
A Large Segment of the World almost Broke Free 115
inaccurate. But it is the basis that is inaccurate, not the formula. Before their
collapse, the Soviet Union was calculated to be within 8 years of equaling the
West in technology. With its huge resources and its highly skilled workforce
operating factories utilizing the latest technology, and assuming it had access
to markets, Russia could theoretically produce just as efficiently as anyone
else. But the billions of dollars poured into Russia since its collapse were not
building any manufacturing industry at all, let alone modern industries. The
problem is not the productivity of labor in the developing world per se. The
problem is denial of technology and denial of access to markets. Immense
sums flowing into a country or region are meaningless if there is no access to
technology and markets.19
So, how else can the guided collapse of the Russian economy be
interpreted? As would be expected, their collapse rapidly worsened as
industries were shut down. The Russians figured that out after it was too
late. Those advisors were then expelled from Russia.20
After the Soviets collapsed in 1991, consumer imports in Russia quickly
rose to an unsustainable 39% by 1996 and climbed to an official 50%
(estimated 60%) by 1998 with no compensating manufactured exports.
aIt must be pointed out that Professor Sachs is currently a leading dissenter on the structural
adjustments being forced upon the developing world. We simply do not know if the
disasters of his advice to Russia alerted him to the errors in that philosophy or if he was
following instructions in Russia and was now doing his own thinking.
116 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
huge savings would be considered a big plus. But Sachs referred to it as that
“pesky overhang.” A healthy economy must have both industries and
buying power. Those private funds would have been a natural to purchase
shares in Russian Industry and would be crucial for buying power to keep
those industries operating. But the goal was to transfer that social wealth
both to Russian oligarchs and to the West; the rights and well-being of the
masses of Russia were of no concern.23
Sale of the Century by Chrystia Freeland is a highly recommended
masterly study on the collapse of Russia after the breakup of the Soviet
Union.24 However, as a correspondent for the Financial Times when doing
her research, Freeland focuses only on finance and politics and ignores
basic economics. She also ignores Russia’s highly motivated labor ready to
make the transition to capitalism (as addressed above by Fred Weir), the
National Endowment for Democracy’s funding and management of
Yeltsin’s election, the American election specialists orchestrating that
election,a the Harvard Institute for International Development’s advising
Russia’s “young reformers” throughout that collapse, and she ignored how
the massive imports of consumer products sucked the wealth out of Russia
and collapsed the economic multiplier.
Without the economic multiplier as money from wages circulates, a
country essentially has no economy. Yet, while intending to document the
full history of the attempt to restructure the Russian economy, that author
fails to notice that the “young reformers” paid no attention to primary
production in Russia. These neophytes were so immersed in neoclassical
Western philosophy that they thought all there was to establishing
capitalism was to create rich capitalists by giving residual-feudal exclusive title
to valuable resources, industries, and banks to a few “oligarchs” who pulled
off one of the greatest thefts of social wealth in history.
In the West, preventing the rise to political power of labor is a primary
consideration. Thus the highly motivated “golden children” who were ready
to restructure Russia’s economy were never given the opportunity. Instead,
the neophyte agents of capitalism (the “Young Reformers”) were intent on
the obviously impossible job of telescoping the 70 years of the age of
American robber barons into less than 10 years.
The “golden children” (children of the latest generation of leaders)
running Russia’s economy wanted to restructure to capitalism and would
have understood how to do so successfully. But labor in charge of any part
of an economy is anathema to theorists of Western philosophy. So the only
people offered a serious opportunity to buy Russia’s productive industries
for a fraction of its true value were the new “oligarchs” with no experience
a This was very successful. Through covert black ops and political pressure, even former
popular leader Michael Gorbachev was denied access to local reporters, media, or even an
audience to speak to, wherever they went. Chrystia Freeland, Sale of the Century: Russia’s Wild
Ride from Communism to Capitalism (New York: Crown Publishers, 2000), Chapter 9.
118 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a This was done through vouchers but, as Chrystia Freeland documents, there were many
schemes for the oligarchs to buy up those vouchers, not the least being they had to be sold
for survival.
A Large Segment of the World almost Broke Free 119
a As that anthrax was DNA-traced to the CIA’s Fort Deitrich labs almost certainly
the anthrax scare was a CIA strategy-of-tension to create more fear in the American
people to further justify the War on Terror. This brings into serious question the
claims that Al Queda is the extensive worldwide organization as claimed.
122 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
those who came from all over the world. Those returning to their homes
after training became the cells of Al-Qaeda whose goal was the destruction
of America.
Afghanistan was not their primary target. The goal was to destabilize the six
Eastern Muslim provinces of the former Soviet federation both by smuggling in
subversive propaganda (books on Soviet atrocities against Muslim people) and
sabotage teams (focused especially on assassinating Soviet officers and destroying
factories and supply depots). The Mujahideen rebels were based safely in Pakistan
from which as many as 11 teams at a time would infiltrate across the Afghan
borders to attack airports, railroads, fuel depots, electricity pylons, bridges and
roads.
Satellite reconnaissance guided the Afghan resistance to Soviet targets and
they were equipped with the latest missiles; including hand held stinger missiles,
to shoot down Soviet helicopter gunships and other aircraft. A stinger missile
electronic simulator was brought to Pakistan to train the Mujahideen. Soviet
battle plans were intercepted by spy satellites and this information relayed to the
resistance which were supplied with secure communications technology. Massive
amounts of propaganda books were distributed to the population.
In the references below it is solidly recorded that CIA director William
Colby laid this Soviet destabilization plan out to the Muslim terrorist forces
being trained in Afghanistan. It worked. The progressive government of
Afghanistan, and the Soviet forces supporting them at the request of the
freely elected government, were defeated and those Muslim “freedom
fighters” went on to destabilize those Eastern Soviet provinces and then
they turned their training to terrorizing and destabilizing America. Today’s
civil war in Russia’s Muslim Chechnya where the U.S. trained Russian
soldiers in tactics to root out the Al-Qaeda, now called terrorists, is a
residual of that CIA master plan.
The website www.emperors-clothes.com has chosen the destabilization
of Yugoslavia and Afghanistan as the focus of their research and they cite
solid sources describing the same Muslim terrorists Americans trained in
Afghanistan as later destabilizing Kosovo and Macedonia under the funding
and guidance of American and German intelligence services (BND). The
numbers in the Kosovo Liberation Army (KLA) eventually reached 30,000
as they destabilized Kosovo by assassinating policemen and Serb leaders.
Later these same intelligence services were reported as organizing the
Ethnic Albanian insurgency in Macedonia, utilizing some of these same
Western trained Muslim zealots. (This would be MPRI and other supposed
private armies under the supervision of the Pentagon’s Special Operations
Command (SOCOM). A computer search with those acronyms and various
countries as keywords will provide a great education.) The escort to safety
of surrounded and trapped Ethnic Albanian insurgents by American troops
provides strong support for these reports. For those sources in the media
A Large Segment of the World almost Broke Free 123
of record the reader will have to check that website and future books by the
authors cited.28
The Soviets withdrew from Afghanistan in 1989, the government was
soon overthrown, and those progressive leaders attempting to build a
modern Afghanistan were promptly hanged. All this was made palatable to
the world by intelligence agency wordsmiths (that Mighty Wurlitzer again) use
of terrorist adjectives (butchers) to describe the progressive leaders they had
overthrown.
But the CIA and all managers-of-state knew better. CIA study-books
available in most libraries described this government as freeing women and
peasants, establishing clinics and schools with massive literacy programs,
returning the land to those who farmed it, canceling mortgage debts of
small farmers, and canceling usurious debts. Sales of brides were prohibited
and women were able to choose their own husbands. In fact, Afghanistan
was then one of the leading nations in the world for providing women’s
rights. More women were in universities than men.
Within that region, Afghanistan’s new freedom was every bit as great a
revolution as the French Revolution in 1789; arguably history’s most
important revolution in the world’s slow escape from feudalism (we are still
not fully free from it). But, just as the French Revolution was overthrown,
by 1996 the Taliban was in power, feudal rule was reestablished, women
could no longer hold jobs or go to school. Nor could they leave the home
without being fully covered and accompanied by a male relative.
Afghanistan went from one of the fastest developing nations in the
world with full rights extended to all citizens to one of the most repressive
in the world where a woman did not dare show her uncovered face in
public, could not go to school, and could not hold a job.
The one aspect of this history that stands out is how these were
freedom fighters when terrorizing and destabilizing America’s competition
and terrorists when they turned on America. This is an enormously
effective use of propaganda and control of the media.
Notes
1 Walter Isaacson, Evan Thomas, The Wise Men (New York: Simon and Schuster, 1986), p. 150;
Michael Kettle, The Allies and the Russian Collapse (Minneapolis, University of Minnesota
A Large Segment of the World almost Broke Free 125
Press, 1981), p.15; Edmond Taylor, The Fall of the Dynasties: The fall of the Old Order, 1905-
1922. (New York: Dorset Press, 1989), p. 381.
2 Philip Knightley, . The First Casualty. (New York: Harcourt Brace Jovanovich, Publishers,
1975), p. 138; D. F. Fleming, The Cold War and its Origins (New York: Doubleday, 1961, 2
vols.), pp. 26, 1038.
3 Paul Kennedy, The Rise and Fall of the Great Powers, (New York: Random House, 1987), pp. 321,
323.
4 James Douglas-Hamilton, Motive for a Mission: The Story behind Rudolf Hess's Flight to Britain,
80; Kennedy, Rise and Fall, especially pp. 321, 323, 352, in part quoting J. Erickson, The Road
to Berlin (London: 1983), p. 447.
6 Jeffrey Jukes, Stalingrad at the Turning Point (New York: Ballantine Books, 1968), p. 154;
National Geographic TV (August 23, 1987); Fleming, Cold War and its Origins, p. 157; Gabriel
Kolko,. The Politics of War (New York: Pantheon, 1990), pp. 19, 351, 372.
7 Kennedy, Rise and Fall, pp. 357-58; David Mayers, George Kennan (New York: Oxford
University Press, 1988), pp. 190-91; Oleg Rzheshevsky, World War II: Myths and the Realities
(Moscow, USSR: Progress Publishers, 1984), p. 175.
8 Sidney Lens, Permanent War (New York: Schocken Books, 1987), pp. 20-21; William
Appleman Williams, The Tragedy of American Diplomacy (New York: W. W. Norton, 1988, pp.
208, 235.
9 Don Cook, Forging the Alliance, (London: Seeker and Warburg, 1989), pp. 78-9.
11 Lester Thurow, The Future of Capitalism: How Today’s Economic Forces Shape Tomorrow’s World
(England: Penguin Books, 1996), p. 56; Lester Thurow, Head to Head: The Coming Economic
Battle Among Japan, Europe, and America (New York: William Morrow and Company, 1992),
pp. 92, 95; Patrick Flaherty, “Behind Shatalinomics: Politics of Privatization,” Guardian.
October 10, 1990, p. 11; David Kotz, “Russia in Shock: How Capitalist ‘Shock Therapy’ is
Destroying Russia’s Economy,” Dollars and Sense, June 1993, p. 9.
12 Peter Gowan, “Old Medicine in New Bottles,” World Policy Journal (Winter 1991-92), pp. 3-5.
13 Fidel Castro, Capitalism in Crisis: Globalization and World Politics Today (New York: Ocean Press,
13.
16 John Gray, False Dawn (New York: The Free Press, 1998), Chapter 6; Alexander Buzgalin
and Andrei Kolganov, Bloody October in Moscow: Political Repression in the Name of Reform (New
York: Monthly Review Press, 1994); Boris Kagarlitsky, Square Wheels: How Russian Democracy
Got Derailed, (New York: Monthly Review Press, 1994). The tables of contents of most good
magazines, both mainstream and alternative news, will have many good articles on the legal
theft of the wealth of the Soviet Union through privatization.
17 Castro, Capitalism in Crisis, pp. 42, 104.
18 Heather Cottin, “George Soros, Imperial Wizard: Master Builder of the New Bribe Sector,
Systematically Bilking the World,” CovertAction Quarterly (Fall 2002), pp. 1-7.
19 J.W. Smith, Economic Democracy: The Political Struggle of the Twenty-First Century, updated and
expanded 3rd edition (www.ied.info/: The Institute for Economic Democracy, 2003),
Chapter 7. Thurow, The Future of Capitalism, pp. 35-36 says German wages were $30 an hour
in 1996, see also pp. 46 and 168 for wages in Eastern and Central Europe at 5% to 10% of
126 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
German wages; Doug Henwood, “Clinton and the Austerity Cops,” The Nation, November
23, 1992, p. 628. Colin Hines, Tim Lang, Jerry Mander, and Edward Goldsmith, editors, The
Case against the Global Economy and a Turn toward the Local (San Francisco: Sierra Club, 1996), p.
487, say $24.90 an hour for Germany, $16.40 for the U.S.
20 Janine R. Wedel, "The Harvard Boys Do Russia," The Nation. June 1, 1998, pp. 11-16.
21 Thurow, The Future of Capitalism, pp. 43-45; Castro, Capitalism in Crisis, pp. 99-104; "Proud
Russia on Its Knees,” U.S. News & World Report, February 8, 1999, pp. 30-36; David R.
Francis, “Debt -riddled Russia to Ask for Forgiveness,” The Christian Science Monitor, April 5,
1999, p. 17; Katrina vanden Heuvel, editorial, The Nation, August 10-17, 1998, pp. 4-6. See
also Julie Corwin, Douglas Stranglin, Suzanne Possehl, Jeff Trimble, “The Looting of
Russia,” U.S. News & World Report, March 7, 1994; John Feffer, “The Browning of Russia,”
CovertAction Quarterly (Spring 1996).
22 Castro, Capitalism in Crisis, pp. 99-104.
http://www.geocities.com/Athens/7842/wcessay04.htm.
24 Chrystia Freeland, Sale of the Century: Russia’s Wild Ride from Communism to Capitalism (New
York: Crown Publishers, 2000. See also, Stephen Cohen, Failed Crusade: America and the
Tragedy of Post-Communist Russia. (New York: W.W. Norton, 2000).
25 Tax lawyer John A. Newman proposed this transaction tax on the circulation of money to
1992), pp. B1, A10; Volkman and Baggett, Secret Intelligence, p. 187; John Loftus, Belarus Secret
(New York: Alfred A. Knopf, 1982), especially Chapters 5-8, pp. 109-10; Blum, A Forgotten
History, Chapters 6, 7, 8, 15, 17, especially p. 124; U.S. News & World Report, March 15, 1993,
pp. 30-56; see Chapter 3, endnote 15.
27 Michio Kaku and Daniel Axelrod, To Win a Nuclear War, (Boston: South End Press, 1987).
28 Linda Robinson, “America’s Secret Armies,” U.S. News & World Report (November 4, 2002), pp. 38-43;
Nafeez Mosaddeq Ahmed, The War on Freedom: How and Why America was Attacked September 11, 2001
(Joshua Tree, California: Tree of Life Publications, 2002); Greg Guma, “Cracks in the Covert Iceberg”
Toward Freedom (May 1998), p. 2; Ahmed Rashid, Taliban: Militant Islam, Oil and Fundamentalism in Central
Asia (New York: Yale University Press, 2001); Michael Griffin, Reaping the Whirlwind: The Taliban
Movement in Afghanistan (Sterling, VA: Pluto Press, 2001); John Cooley, Unholy Wars: Afghanistan, America,
and International Terrorism (Sterling, VA: Pluto Press, 2000); Yousai Mohammad and M. Adkin, The
Beartrap: Afghanistan's Untold Story (London, England: Leo Cooper, 1992); William Blum, Rogue State: A
Guide to the World’s Only Super Power (Monroe, ME: Common Courage Press, 2000), Chapter 2; K.
Lohbeck, Holy War, Unholy Victory: Eyewitness to the CIA's Secret War in Afghanistan (Washington DC:
Regnery Gateway, 1993); Alexander and Michael S. Swetnam. Osama Bin Laden’s al-Queda: Profile of a
Terrorist Network (Ardsley NY: Transnational Publishers, 2001); Peter L. Bergen, Holy War Inc.: Inside the
Secret World of Osama Bin Laden (New York: Simon & Schuster, 2001); M.J. Gohari, (The Taliban: Ascent to
Power. New York: Oxford University Press, 2000); Larry P. Goodson, Afghanistan’s Endless War: State
failure, Regional Politics, and the Rise of the Taliban (Seattle: University of Washington Press, 2001); Robin
Wright, Sacred Rage: The Wrath of Militant Islam (New York: Simon & Schuster, 1985).; Michael Griffin,
Reaping the Whirlwind: The Taliban Movement in Afghanistan (Sterling, VA: Pluto Press, 2001); J. Peterzell,
Reagan's Secret Wars, CNSS Report 108 (Washington, DC: Center for National Security Studies, 1984); T.
Weiner, Blank Check: The Pentagon's Black Budget (New York: Warners Books, 1990); E.T. Chester, Covert
Network: Progressives, the International Rescue Committee, and the CIA (New York: M.E. Sharpe, 1995); D.
Cordovez, and S.S. Harrison, Out of Afghanistan: The Inside Story of the Soviet Withdrawal (New York:
Oxford University Press, 1995); S. Emerson, Secret Warriors (New York: G.P. Putnam, 1988);
Westerfield, Inside CIA's Private World; L.K. Johnson, America's Secret Power; R. Kessler, Inside the CIA:
Revealing the Secrets of the World's Most Powerful Spy Agency (New York: Pocket Books, 1992); Duane A.
Clarridge, A Spy for all Seasons: My Life in the CIA (New York: Scribner, 1997).
29 Ibid, especially Guma, “Cracks in the Covert Iceberg.”
A Viable Yugoslavia could not be permitted 127
the West they ordered another 30% currency devaluation which accelerated
a 140% inflation rate to 937% in 1992 and 1,134% a year later, GDP
dropped 50% in four years.a The result was the destruction of Yugoslav
buying power quite similar to what was done to the Soviet Union (as
discussed above) under the pretext of establishing capitalism. Basic
economics teaches a prosperous nation must have buying power. No
Western nation would ever inflict such a wound on its own economy;
destabilizing the Yugoslav economy, not development, was the goal.
Simultaneous with creating the extreme crisis in Yugoslavia, German
foreign minister Hans Dietrich Genscher, was promoting independence to
his counterpart in the Yugoslav province of Croatia. In an annual event for
funding destabilizations, U.S. 1990-91 legislation, the “Foreign Operations
Appropriations Bill,” demanded separate elections for each Yugoslav
province with the U.S. State Department approving their conduct and
outcome. This aid was to go only to independent republics, none to the
central government. Independence meant funding and trade for the
provinces while federation meant continued embargoes and no funds.
All this, along with an eight-year embargo, assured the final breakup of
Yugoslavia. Under the 1995 Dayton Accords, a constitution was written for
the Bosnian Federation by the U.S. State Department stipulating that the
negotiating coalition could appoint a High Representative (HR) with full
executive powers to overrule the government. That façade of democracy
(the Parliamentary Assembly) simply rubber-stamped the decisions of the
HR and his expatriate advisors. Those accords stipulated that, “the first
governor of the Central Bank of Bosnia and Herzegovina is to be appointed
by the IMF and ‘shall not be a citizen of Bosnia and Herzegovina or a
neighboring state.’” Because he objected to forcibly selling off banks, water,
energy, telecommunications, transportation, and metal industries, at firesale
aThis is exactly what any other country would have done if outside forces were orchestrating
the assassination of their policemen and politicians. Witness America’s National Guard
called out to protect thousands of facilities nationwide and the mobilization of armed forces
worldwide to eradicate Al-Qaeda after the 9/11/ 2001 terrorist attack on America.
130 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
aIn Croatia Hitler’s mobile death squads were known as Ustase, in Romania as the Iron
Guard, and in Latvia as Vanagas.
A Viable Yugoslavia could not be permitted 131
relatively pure), including 350,000 Serbs and others ethnically cleansed from
Kosovo after NATO’s takeover of that province.4
The Serbs refused to sign away their sovereignty and may have reacted to
the bombing by expelling the Albanian Kosovo population.a The “free”
press should be called to account for not alerting the public that it was
NATO members acting and Yugoslavia doing the reacting. It was
Yugoslavia and no one else under threat all the time. Yugoslavia was not
threatening anyone outside or inside its borders until they were being
covertly destabilized.
Actually not even then. Their only offense was refusing to sign the papers
accepting armed occupation of their country. Homes were destroyed as the
KLA were rooted out of the houses from which they were firing on Serb
soldiers but no ethnic cleansing occurred until after NATO started
bombing Yugoslavia and, as addressed in footnote a, perhaps not even
then.b Nor was that ethnic cleansing, if it occurred, as violent as we were
a We say “may have” because there is the high probability that the KLA engineered the
ethnic Albanian exodus from Kosovo under the coaching of Western Intelligence services
who were carefully writing history to justify the destruction of Yugoslavia. Only an alert
researcher on the ground in Kosovo can research the truth. Jared Israel’s “Why Albanians
Fled the NATO Bombing: The Truth about What Happened,” interview with Cedda
Pralinchevich, http://emperors-clothes.com/interviews/keys.htm, will provide insights into
what questions to ask. Cedda Pralinchevich is very persuasive that Albanians were fleeing
upon orders of their leaders and in their culture not obeying was not an option.
b A pattern has emerged. Military destabilization of these countries begins by training and
told. The original propaganda figures of over 100 massacres with 100,000-
to-500,000 Albanian men missing and thought to be slaughtered were
reduced to a still sensationalized 10,000 expected to be found in mass
graves when NATO first entered Kosovo. Inspection of the alleged 30
mass gravesites by an American FBI team turned up 200 bodies and
dropped the Kosovar externally orchestrated civil war body count to 2,108
killed by all participants—the Serbs, the KLA, local grudge settlements, and
NATO bombs. Emilio Perez Pujol, the head of the Spanish Forensic team
conducting the investigation, said “not one mass grave was found.”6
The propaganda principle is simple: Big headlines on the 100s of
thousands expected to be found in mass graves and minimum or no
coverage when nothing is found. Thus is propaganda spread right through
the major media and the world’s news services should be called to account
for that. The problem is that any who did would be instantly ostracized by
their audience and other media.
No mass graves and this very low body count, when an entire nation
was being militarily fragmented by covertly funded and orchestrated
opposition forces and under direct attack by those same foreign military
forces as well as the 1-million refugees within Serbia from the
destabilization and fragmentation of Yugoslavia, testifies to a successful
NATO propaganda blitz (that Mighty Wurlitzer again) that has never been
addressed in depth by the media of record. How could they, it is they who
blazed the propaganda from their headlines.
When to the above disinformation we add the Pentagon wordsmiths’
claim of the destruction of one-third of the Serbian military (122 tanks, 454
artillery pieces, and 222 armored personnel carriers) loudly proclaimed and
the postwar investigation by General Wesley Clark, the West’s commander
of that war, that only 14 tanks, 20 artillery pieces, and 18 armored personnel
carriers” were destroyed (this correction not covered by the media), that
this was a planned propaganda campaign is obvious.7
The American/NATO assault on Serbia/Kosovo destroyed only about
50 of Serbia's major weapons of war and very few soldiers while killing
more civilians than the accused nation, Serbia. However, that bombing blitz
succeeded very well in creating massive destruction of the obvious real
target, Serbia's civilian economic infrastructure.
Under the ultimate oxymoron of a “humanitarian war,” which depicted
the West as saviors as NATO bombed 15 essentially defenseless cities
around the clock for 78 days, the successfully destroyed real targets of
precision bombing were: heating plants for entire cities, 344 schools, 33
clinics and hospitals, power plants, food processing plants, pharmaceutical
plants, bus and train depots, electrical grids, bridges, factories, power
stations, trains, airports, water supply systems, warehouses, oil refineries,
fuel storage, chemical factories, museums, and TV and radio stations.
Among the commercial buildings destroyed were twin tower skyscrapers
A Viable Yugoslavia could not be permitted 133
eerily reminiscent of the World Trade Center twin towers destroyed in the
9/11/2001 terrorist attack on America.
After the destruction of Yugoslavia was carried out under the false flag
of oppression and genocide in Kosovo, 350,000 Serbs, Gypsies, Slavic
Muslims, Croatians, Jews, Turks and anti-fascist Ethnic Albanians were
driven out of Kosovo in a continuation of the Albanian’s ethnic cleansing
that had been in progress since WWII (40% ethnic Albanian in 1945
increased to 80% by 1980 and is now over 90%).
At Milosevic’s trial (on-going at this time) it was testified that the KLA
assassinations orchestrated by Western intelligence were brought under
control by Serbia in six months. The KLA assassins (of postmen, foresters,
and other civil servants) jailed by Serbia were freed by the NATO
occupation as “political prisoners.” After defeating the defending Serbian
army, the NATO occupation army then claims not to have been able to
prevent a renewed ethnic cleansing of Serbs out of Kosovo by the very
forces they financed, armed, and coached for eight years.
While the Trepca mines rich in lead, zinc, cadmium, gold, silver, and coal
were considered the most valuable piece of real estate in the Balkans,
through Yugoslavia is the shortest route to Europe for oil from the Caspian
Sea region. More important take note of how the whole of Eastern and
Central Europe, now a formal part of NATO and a united Europe, will, so
long as control of the Caspian oil region is maintained, have access to cheap
Caspian oil.
Both Iraq and Yugoslavia were working hard to maintain their
independence and control their destiny. But both nations reputations and
economies were destroyed by propaganda, embargoes, and bombing, (Very
A Viable Yugoslavia could not be permitted 135
similar to the massive propaganda deployed almost 200 years ago to destroy
the reputation of Napoleon in the attempt to reclaim the excessive rights of
aristocracy, a system which the Napoleonic Codes—established as the
fundamental law in over 30 countries—eventually destroyed.) For its selfish
acceptance in being America’s puppet to destabilize Iran, its subsequent
invasion of Kuwait, and violence against their citizens there is justification
for demonizing Iraq even though much of what Saddam Hussein did was,
at first, as an agent of the West, and later, as their target. But there is
virtually no justification for destabilizing Yugoslavia except to pave the way
for expanding an allied imperial-center-of-capital all the way to Russia’s borders.
The natural wealth, the industrial wealth, and the future wealth of
Yugoslavia have been delivered to predatory Western finance capital.
Though the human cost is greater today (1.5-million Iraqi deaths from the
war and embargoes, 500 Yugoslavian civilians killed by NATO bombs and,
like Iraq, many thousands more to die due to the destruction of their
economy), this is a replay of the Middle Ages when the raiding parties from
the cities of Europe destroyed the industrial capital of the countryside to
maintain its dependency upon that city.
That an empire manufactures excuses for war whenever it wishes to
gain the support of the people to destroy a potential rival is documented
history.11 Obviously the death of 2,108 people (both Albanian and Serb
Kosovars, killed by the Serb military, the Kosovo Liberation Army, and by
Western bombs) in Kosovo’s NATO designed and supported civil war was
not the reason for NATO’s bombing of Yugoslavia. Over 1,000,000 people,
largely children and weaker old people, perished in Iraq due to the
American-led sanctions. One-third of the East Timorese (200,000) died in
that Indonesian suppression of rights (America supplied the weapons and
gave the green light). The ethnic cleansing in Rwanda killed 500,000. The
20-year conflict between Ethiopia and Eritrea (a province of Ethiopia, the
independence of which was covertly supported by America during the Cold
War) caused the deaths of 50-thousand. The 16-year struggle in Sudan
extinguished the lives of 2-million. Eighty thousand were killed up to this
point in time in Russia’s Chechnya suppression. And, in the early stages of
the Yugoslav destabilization, tens of thousands were killed when Croatia—
with the backing of the United States and Germany—“ethnically-cleansed”
her territory of over 500,000 Serbs.12
Eastern Europe could not be totally restructured along Western
political and economic lines so long as Yugoslavia remained intact with her
citizens well cared for and her industry underselling Western products
throughout Eastern Europe. An opposing ideology with an intact military
could not be permitted west of the planned new line of NATO defense,
Romania, Bulgaria, and Greece. Thus the Western Christian nations of
Romania, Bulgaria, Hungary, Slovenia and Croatia surrounding the Eastern
Orthodox Serbia are now within NATO (or soon will be). Serbia is
expected to become one of the poorest nations in Europe, which cannot
136 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a Los Angeles Times, September 26, 2000; New York Times, September 20, 2000; Senator
Joseph Biden’s Senate Hearings on Serbia, July 29, 1999; Serbian Democratization Act,
HR1064, September 5, 2000; cited on various webpages at http://emperors-clothes.com. We
have barely opened the door on the all-out financial, economic, covert, and overt warfare
destabilization of Yugoslavia. The definitive books have not yet been written on this deeper
history. We suggest early readers to study the website http://emperors-clothes.com and later
readers watch for books and articles by Michel Chossudovsky, Jared Israel, Peter Gowan,
Greg Palast, Michael Parenti, Noam Chomsky, and authors in Eastern Europe, Yugoslavia
and Russia.
A Viable Yugoslavia could not be permitted 139
puppet media and politicians.a This covert funding of opposition forces
through NED is standard practice worldwide. In short, Western powers
were practicing total dictatorial control of governments and media and
military suppression of dissent, the very things of which they accuse every
country not safely under their imperial umbrella.
Before they had even taken office, Serbian opposition leaders met in
Bulgaria with the IMF, the World Bank, and the leaders of NATO
countries to finalize the fine points on the takeover of Yugoslavia14 which
included all the structural adjustment and abandonment of protection of
citizens imposed upon most nations on the periphery of empire which
would eventually mean the takeover of their economy by the German mark
(and now the European Euro).
Once the various former Yugoslav provinces use the the Euro as their
currency (as all but Serbia now do including Kosovo and Montenegro),
Serbians can no longer create their own money and their funding of
essential industries and services will be severely curbed. The Balkans will
have become the “countryside” for the West European economy; an
expanded version of the vision of Germany for the past 100 years.
With the Western-imposed new leaders of Croatia, Slovenia, and other
regions being direct descendents of Hitler’s Ustase death squads with every
intention of making second-class citizens of their Eastern Orthodox
neighbors, the new leaders of Serbia have no illusions as to the hard future
the West will be imposing upon them. After all, poverty is many times
higher in virtually every country of the collapsed Eastern Europe and the
former Soviet Union than it was under Communism (East Germany is the
exception).b Even the Ukraine, the breadbasket and industrial heartland of
the East—which dutifully followed all the prescriptions of the IMF, the
World Bank, and NATO—became prostrate and essentially begging the
West for food. Of course, these leaders are aware that Western promoted
structural adjustment prescriptions created that poverty but they are equally
aware that they have been left with no other choices.
a When knowledge of American covert funding of other nations’ elections surfaced, the U.S.
Congress established the National Endowment for Democracy (NED) in 1983 to fund
openly a part of what the CIA had been funding covertly (Washington Post, September 21 and
22, 1991); Heather Cottin, “George Soros, Imperial Wizard: Master-Builder of the New
Bribe Sector, Systematically Bilking the World,” CovertAction Quarterly (fall 2002) and William
Blum, Rogue State: A Guide to the World’s Only Super Power [Monroe, ME: Common Courage
Press, 2000], Chapter 19). In “Regime Change: A Look at Washington’s Methods and
Degrees of Success in Dislodging Foreign Leaders,” The Christian Science Monitor, January 27,
2003, Peter Ford outlines the 50 years of America destabilizing other governments we are
addressing, including the demonization of progressive leaders like Milosevic and how
George Soros’ destabilization foundations work.
b At conferences I always ask professors who have been to Eastern Europe, and those from
there, “How does the standard of living compare with 1985?” Universally, for all countries
the answer is, “lower” and for most the answer is “far lower.”
140 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a Military power is the final law. In December 1999 a “popular tribunal” in Vienna Austria
found some of these same people guilty of war crimes. Of course military power is the final
arbiter of law and this tribunal had no army or media to back up their decision.
A Viable Yugoslavia could not be permitted 141
death squad option again) and those positions were being taken over by the
Western-backed opposition.
At his trial Milosevic had already brilliantly turned the testimony to
prove it was NATO that was the war criminal. NATO’s prime witness,
Rade Markovic former head of the Serbian secret service, took the stand.
Prosecutor Jeffrey Nice was shocked when his prime witness described how
in the Belgrade jail his torture had been overseen by two US/West
European agents (Mihailovic and Petrovic) and he was finally offered a
good life with a new identity if he would testify against Milosevic. Even
realizing he was in mortal danger, Markovic testified that, far from being
guilty of causing the exodus from Kosovo, Milosevic had ordered the flow
of refugees to be stopped. As the prosecution desperately tried to stop their
own witness, he went on to testify that Milosevic “came down hard on hate
crimes and more than 200 such charges were filed against police and a like
number against the army.”
Any testimony in which the prime witness had been tortured to testify
for the prosecution should have shut down the trial and placed the witness
under protection. Instead the testimony was ignored and Markovic was
returned to the Belgrade prison. Where Markovic’s earth-shaking testimony
at the trial of the century was totally ignored by the wire services, on
September 6, 2002 some news about Markovic favorable to the prosecution
was reported: “According to Markovic’s signed statement from a Belgrade
jail Milosevic ordered him to remove bodies of civilians killed in Kosovo.”
Obviously their witness was tortured some more and this time the
prosecution was not going to take a chance on his live testimony. No legal
body can justify returning a prisoner to torturers and an honest court would
have thrown the case out of court as soon as such dictatorship tactics were
exposed. But this is not an honest tribunal. It was established by NATO,
paid for by NATO, and staffed with biased prosecutors and judges who
knew what they were there for. They were there to write history as NATO
wanted it written. As the designers of the destruction of Yugoslavia write
their own history, Milosevic will be found guilty. America has the same
plans ready for Saddam Hussein which, even though he was a U.S. ally for
years, has at least some relevance to reality. It has no reality in Yugoslavia.
The war against the Taliban in Afghanistan is instructive. It seems the
policy was primarily to take no prisoners (openly stated on TV by U.S.
Secretary of Defense Donald Rumsfeld) and relatively few were taken.
Those essentially executed rather than taken as prisoners are enemies of the
countries financing the International Criminal Tribunal.a Although this is
aFor a view of the threat to the West of an unbiased International Criminal Court read:
Tuva Raanes, “A Divine Country All on Its Own,” World Press Review, October 2002, p. 17.
As the year 2000 came to a close, 139 nations had signed a treaty to create that
court. It was also established at the Hague, assumed legal jurisdiction in July 2002,
and by late 2004 was preparing for its first trials. Due to the history of immense
142 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
against the rules of both decency and war, one can be sure there will be no
war crimes charges against those responsible.
The new Serb government had no choice. The shattered Serbian
economy was to receive no financial support or access to markets until the
Serbs turned Milosevic over to the War Crimes Tribunal. Such is the
unacknowledged power of subtle-monopoly capital which exercises
enormous financial and economic control in virtually every nation in the
world except China and even that powerful country must be very careful.
The managers-of-state of the now allied imperial-centers-of-capital know well
their power, use it ruthlessly, and leave weak countries no alternative. Key
countries targeted for destabilization and takeover by the West who try to
maintain independence and who have no powerful nation to protect them
risk the same devastation by Western military power as was visited on the
once independent and relatively prosperous Yugoslavia. Once the powerful
Soviet federation was destabilized, virtually every country in the world was
at the mercy of the well-organized allied imperial-centers-of-capital.
terror imposed worldwide we have been addressing, the U.S. is, under threat of
severe economic and financial sanctions, pressuring countries to sign that they will
not prosecute Americans for war crimes in that court.
A Viable Yugoslavia could not be permitted 143
When Eastern and Central Europe collapsed under the pressure and
coaching of the West as outlined above, the economically efficient
Czechoslovakia disintegrated into two inefficient countries, the Czech
Republic and Slovakia. The fate of the highly efficient VSZ steel complex in
Slovakia (a Western Christian nation) provides a glimpse of their future.
With the breakup of Czechoslovakia, the collapse of all Eastern European
countries, and the imposition of IMF/World Bank structural adjustments,
the local markets for VSZ steel disappeared. Markets in the West were
protected from VSZ’s low priced—high quality—steel, the once-booming
steel complex ran out of money, and under IMF/World Bank rules they
could not be financed by the Slovakian central bank.
This prostrate industrial jewel was picked up by America’s U.S. Steel
for the bargain basement price of $450-million and it now provides 25% of
their steel making capacity. Slovak steelworkers are paid roughly $2 an hour
against U.S. Steel workers pay in America of $35 to $45 an hour.16 High
quality Slovakian steel will be sold on the world steel market, those mills
will operate at full capacity, any over-capacity will be alleviated through
lowered production in America, Western Europe, or Japan and the huge
profits generated in the Slovakian mills will disappear into the accounting
books and profit distributions of U.S. Steel. In short, the labor of America
and Europe will take a loss, the labor of Slovakia will hold at a low pay
level, and all gains will go to the owners of U.S. Steel. This same scenario
will play out in other industries.
Like the underpaid developing world, Eastern Europe will gain only a
little because their pay is too low to provide adequate buying power. Labor
in the developed world will eventually lose buying power as their jobs are
taken by equally-productive, low-paid Eastern European workers. Germans,
Japanese and other steel producers will have to lower steel and labor prices
or lose market share. This will be the well-understood cyclical crisis of over
production of capitalism compounded by the abandonment of economies
once seen as crucial to protect against fast expanding socialism (Japan and
the Asian tigers) and further compounded by the melding of high-paid
capitalist economies of Western Europe with equally-productive (once
modern factories owned by the wealthy West are installed) but low-paid
former socialist economies of Eastern and Central Europe.
Economic statistics showing a steadily advancing world economy can
only be through ignoring the severe shrinking of 40% of the world
economy. The collapse of the currencies, buying power, and industries of
Mexico, Southeast Asia, Latin America, Eastern Europe, and the former
Soviet federation meant their citizens were impoverished as their resources
and production of their labor were purchased by the imperial centers below
the previous norm.
Just like low-priced oil contributes to maintaining healthy economies
for the imperial centers (the reason for the current Iraq war), a rapid
lowering of the price of any resources or production of labor from the
144 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
periphery of empire will, so long as the markets of the imperial center can
be protected, be a boon to those economies of the center of empire even
though the periphery may be devastated.
Though they are now a part of NATO, integrating Eastern Europe will
take at least two generations. There will be no rapid development such as
the Asian Tigers and China. This can be best understood when reading
about the yet-unsuccessful integration of East Germany into a unified
Germany even with the expenditure of $1.5-trillion (see chapter 11). There
is no sense of brotherhood to trigger generosity as in Germany and no such
funds will be allotted to the much larger, much more diverse, and much
poorer Eastern Europe.
Unless they can gain access to cheap resources, access to technology,
access to finance capital, access to markets, and own their own factories,
those nations will be poor for decades. A minority may become wealthy but
one simply cannot avoid the reality that Western Europe can produce
everything needed by Eastern Europe and they are not going to give up
their monopoly on technology nor will they willingly give up their jobs.
They know well that to do so would lower their standard of living.
Primarily traders will drop prices only enough to gain market share. It
seems Harbor freight is the exception. Another friend paid $230 for a rotary
drill press from them that he knew should cost $800. If the final buyer ends
up with most of those gains in value, their gain is only in use-value. If the
trader ends up with those gains, they end up with capitalized values which is
roughly 10 times that of use-values.
In the December issue of Economic Reform William Krehm points out
that due to low wage costs in China Television prices have dropped 9% a
year for the past three years, tool prices dropped 1% per year, and sports
equipment dropped 3% a year. Considering the profits banked by traders,
those latter price drops are far understated.
Through rapid expansion of graduate engineers, China is rapidly
expanding production and sales of high technology items (increasing over
50% a year on their low base). It is not unreasonable to assume that
competition between China, Japan, and the Asian Tigers could lower
product prices in the imperial centers 5% a year. Assuming protective
measures are not put in place, and to do so will be both ideologically and
actually difficult, eventually the excess profits of traders will disappear. The
loss of those excess profits would normally mean a collapse of stock prices.
But if the military/legal lock on the rest of the world can be
maintained, the economies of the imperial centers may not collapse. It will
take the sale of only a few products and services at a high price to pay for
those massive products imported at low prices. If that were to happen, we
would be observing what has previously only been analyzed in economic
theory, the import of products at almost no cost (the theory is the
production of all products at almost no labor thus almost no cost) and all
that is necessary for a healthy economy is for citizens to provide each other
with services. The imperial centers are approaching that stage. In 1960
American labor was 70% industrial and 30% services. Today it is 20%
industrial and 80% services. Surely before that utopian state is reached the
periphery will become aware their resources and labors will be providing
most the consumer products of the imperial centers while workers in those
imperial centers only provide each other services.
Expand that concept theoretically to all consumer products and the
imperial centers will be rapidly accumulating wealth even as the periphery
loses wealth. Only a few high priced products and services exported to pay
for those enormous imports accounts for the great wealth accumulated by
the imperial centers during the decade of the 1990s. This simple mechanism
for transferring wealth from the equally-productive low-paid to the high-
paid is not adequately addressed in economic literature.
Previously rising stock market values in the imperial centers maintained
buying power. When stock market values start dropping and import values
to the imperial centers (the periphery’s export values) keep dropping, the
periphery of empire is losing value and buying power in both cases. So long
A Viable Yugoslavia could not be permitted 147
as other values in the imperial centers (primarily real-estate) hold or
increase, the values to borrow against, and thus the buying power, will hold.
But if real estate and stock values drop the values to borrow against will not
be there, consumer confidence will collapse, and purchases in those once-
wealthy nations will start falling. The buying power to keep the world
economy afloat will have shrunk drastically, prices will drop, and more of
the world’s productive capacity will have to close down.
But if wealth continues to pour into the imperial centers through
rapidly falling consumer prices, as just discussed, in the short run those
home values may rise rather than fall. The share of monthly earnings once
budgeted for discretionary spending is now available for investment. If
stock prices continue to fall and land and homes continue to rise in price
the logical investment for that left-over monthly income will be in homes.
That, of course, will force home prices higher yet. The recent rise in stock
markets, 2002-05, will also have created buying power. But, sooner or later,
those two markets will go down together and create a sharp drop in buying
power.
As industrial labor shrinks due to imports of consumer products, the
imperial centers can still protect those values through printing money to
provide buying power. (Remember, wealth is pouring in and that wealth has
monetary value.) If commodity import prices to the imperial centers
continue to shrink, values will continue to be imported or produced in
those imperial centers (high values added) even as values continue to drop
on the periphery.
The balance between wealth in the imperial centers and wealth on the
periphery can, within reason and depending upon the military power of the
imperial centers and its effective use, be held at either a high or low
differential. Today it is being held at a high, and growing, differential.
Poverty on the periphery is growing while wealth in the imperial centers is,
or at least was, still growing.
Siphoning from the periphery of empire to the imperial center at the
rate of 25-to-1 through being paid 20% for equally-productive labor, as
discussed in Chapter six, will increase exponentially if currency values
widen. If that wealth differential continues to grow as the wealth of the
periphery pours into the imperial center, or if the citizens on the periphery
of empire figure out why it is that they are so poor while it is their resources
and labor that are producing the wealth for the imperial centers, a
flashpoint will have been reached. If the periphery is to gain their freedom
developing world professors and intellectuals must study and understand
this process.
At this time the imperial centers are holding, and though this reality is
not acknowledged, the periphery has collapsed to the extent that the
average standard of living worldwide can only have dropped substantially.
With the exception of East Germany, the standard of living in virtually
every East European country is lower than in 1985 to 1999, most far lower.
148 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Russia and the former provinces of the Soviet federation have seen their
standard of living drop in the range of 50% before stabilizing due to high
oil prices. Argentina’s per-capita annual income dropped 60% and then
started to recover. The economies of Brazil and Uruguay threatened to
mimic Argentina and may go either way. Other Latin American economies
have seen their average living standards drop, then recover somewhat, and
they too may go either way. Most of Africa has seen their living standards
erode for decades and there is, at this time, no sign of a turnaround. Japan’s
economy shrank for 10 years (their wealth was down $18-trillion), has now
stabilized, and rebuilt some of that wealth. Although their balance of
payments and reserves have rebuilt, the former Asian Tigers have not
regained their pre-1997 per-capita living standard.
Such economic crisis in previous history has created wars. (The many
destabilizations we address affirms that history) It will take an enormous
military to maintain such an immense rate of transfer of wealth from the
periphery to the imperial centers.a The current power-structure understands
this well. America’s roughly $280-billion military budget climbed to $400-
billion and appears headed to over $450-billion by 2007. That is more
money spent on the military than the next 15 richest nations and most of
those are allied with, or at least friends of, America.17
From their viewpoint, Western imperialists may need that firepower.
Much of Southeast Asia is highly industrialized and, in 2002, China alone
graduated over 400,000 PhDs in the hard sciences. We must remember
Germany graduating 8-to-10-times more engineers (3,000 against England’s
350) made the German economy much more efficient than the British
economy and it was Germany’s efficient economy taking over British
markets that led to World Wars I and II. Only a philosophy of sharing
resources, sharing productive capacity, and sharing in the wealth produced
can avoid Fascist military control of world resources which could easily turn
into World War III.
America’s and NATO’s rapid reaction forces snuffing out resistance all
over the world is only control of resources and control of the wealth-
producing-process hiding under other excuses. If those economies on the
periphery continue collapsing or fail to advance economically, and especially
if the imperial centers implode, the world will soon figure that out.
That collapse of the periphery does not need to continue. An implosion
of the imperial centers while the periphery holds is getting more and more
plausible. Japan can just as logically ally with other Asian industrial
economies as they can with America. Actually, with her enormous dollar
a The same transfer of wealth from the weak to the powerful is on-going within the
American economy. If the share of the nation’s wealth between the wealthy and the poor
had remained stable the past 30 years, the annual income of the lowest 10% would be double
what it is today.
A Viable Yugoslavia could not be permitted 149
reserves, that of other Asian nations (together, well over $1-trillion), and
their collective productive capacity, even more logically:
Japan has demonstrated how to ignore monopoly capital’s rules and
keep an economy going even as property values collapse. All nations have
taken notice and those three nations have the industrial power, the dollar
reserves, the cohesiveness, and the philosophical agility to protect
themselves and each other. Russia is also similarly situated. Thus the next
worldwide economic collapse is likely to be very different from those of
past history.
China, India and Japan—the major Asian economic players—are at this
time (2005) signing trade contracts with Latin American and African
nations. Virtually every commodity or consumer product used in world
commerce can be processed or produced in either Japan or China and India
and Russia are also major players. Whether the world economy collapses or
whether it stabilizes under the hand of America’s military might, those
countries have the power to protect themselves and will do so either
individually or collectively.
If the world economy collapses (the 1st possibility) those nations will
ignore the rules of monopoly capitalism, they will restructure their internal
debts under their own currencies, they will—through this new trading
currency or an allied currency—maintain those trade relations with Africa
and Latin America, and keep their economies going.
If America’s military power is able to stave off that collapse (the 2nd
possibility), those four nations will slowly get out of the dollar, slowly move
to an alternative trading currency (either their own or an allied currency
similar to the Euro), expand those trade agreements with Latin America and
Africa and maintain or, as we show is possible under democratic-cooperative-
superefficient-capitalism, increase their economic momentum.
Those four emerging nations and a few smaller ones are, very
responsibly, slowly moving out of the dollar at this time. We say very
responsibly because they are trying to protect America from the insanity of
its own economic and military policies and at the same time protect
themselves.
There is always the 3rd and 4th possibilities, Fascist control of the world
(the current plan) and World War III. The 3rd possibility is only a prelude to
the 4th. Even though history tells us that worldwide war is the most likely of
the four possibilities, we are optimists and will not go down that road. The
long and short of it is that, even though it is struggling to survive,
monopoly capitalism is reaching the end of its natural life.
As we have thoroughly documented, no country ever developed under
monopoly capitalism’s Adam Smith free trade philosophy, not even those
imperial centers who have preached that imperialistic cover story so long
they believe it. But those emerging nations never did believe it, nor do the
alert within them believe it now. Even as they mouthed monopoly
150 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
capitalism’s philosophy, the alert knew they were practicing Friedrich List
protection of tender industries and markets.
Those alert know that isolated production units (countries or alliances)
must compete for resources and markets and it is that struggle which leads
to wars. They also know that those struggles are eliminated through
federating and sharing resources and markets.
With Latin America, Africa, and the former Soviet Far East being the
last remaining unindustrialized regions providing resources to the
industrialized and rapidly industrializing world, with several countries within
that periphery signing trade alliances (that necessary precursor to
federation) and starting to industrialize, and with a few having enough oil
income to do so successfully if they can make the final break from those
colonial chains, the world is at a critical juncture.
Quite simply, both outright colonialism and colonialism hiding under
the cover of Adam Smith free trade is coming to an end. Once those
resource-wealthy impoverished nations ally together for their own
development there will be no more periphery which means, except through
conquest of those newly emerging trade alliances, there can be no empires.
America and their allied imperial-centers-of-capital know all this which is
why, with 70% of the weapons on earth already, they are desperately
building more sophisticated weaponry and planning on militarily controlling
space. In this struggle for control of resources and control of the wealth-
producing-process, the world is poised for a third world war. But, as addressed
above, the massive dollar savings and the even more massive productive
capacity within competing alliances and federations will, in the long run,
trump that massive military power.
An alliance is an agreed set of rules that different cultures will live by. A
mature alliance, such as the European Union is a federation of nations.
Thus the world’s trading alliances are early beginnings of a federated earth.
Only by full federation of all nations can the world proscribe the selfishness
of the powerful and abandon war. There is no middle ground. To not
federate is to be either one of the oppressor nations or one of the
oppressed.
Every sober citizen wants an end to wars. Only when faced with power
have imperial nations ever abandoned their claims upon the wealth of the
periphery. Those imperial centers cannot control billions of people if they
band together. The periphery must ally together to peacefully reclaim their
share of the world’s wealth produced by the world’s resources and the
wealth-producing-process. After all, most those natural resources are within their
borders.
The enormous wealth flowing into the imperial centers from the
periphery is consumed in part by the huge expenditure on arms necessary
to control the resources on the periphery and thus control the wealth-
producing-process. The economic multiplier from these wasteful expenditures
A Viable Yugoslavia could not be permitted 151
creates the good life for citizens in those imperial centers. That system of
theft is then hidden from the social mind by massive propaganda portraying
the suppressed as dangerous enemies and the suppressors as a benevolent
people attempting to bring peace, freedom, justice, rights, and majority rule
to the world.
The managers-of-state of the rapidly developing world are highly
intelligent and obviously understand they are practicing Friedrich List
protection of tender industries and markets even as they mouth Adam
Smith free trade. Living in reality permits them the philosophical agility to
change banking and property rights structures and keep their economies
going should the world economy collapse.
But the imperial centers are so imprinted with Adam Smith philosophy
and so dependent upon the theft of the wealth of weak nations that, even
though the powerbrokers understand the fraud quite well (after all they
created it), the system (politicians, professors, intellectuals, corporate
leaders, think tanks, and the citizenry) will be unable to quickly make the
necessary financial and property rights adjustments.
Professors and the true intellectuals should be able to quickly adjust but
it will take years for what they say to seep into the nation’s minds.
Politicians will not change because, after pushing Adam Smith for so
long and with their constituents still locked into the old beliefs, they will
look foolish.
Corporate leaders and those hard right think tanks which created neo-
liberal economics are the biggest problem. Those false philosophies were
created specifically to protect wealth and power and, under the necessary
restructuring of those immense blocks of unearned wealth, the current
powerful and those think tanks, through which the mind of nations were
controlled, disappears.
Thus, which ever of the above listed possibilities occur, the world
cannot federalize, become peaceful, and produce a quality life for all until
the entrenched-wealth economies crash. That crash will destroy that wealth,
totally discredit the belief system so carefully imposed upon its citizenry,
discredit the current powerful and their think tanks, and open the minds of
all to the necessity of federating all nations under democratic-cooperative-
superefficient capitalism.
There are many good qualities to capitalism, crucial to an efficient
economy but no country in the world has ever had honest capitalism. What
we have has always been monopoly capitalism. Once this is understood,
those locked into the beliefs of capitalism can quickly build upon efficient
capitalisms’ new philosophical base.
Likewise, no country has ever practiced fully-thought-out, truly-
efficient, socialism. True believers will recognize that this new philosophy
can just as easily be called democratic-superefficient-socialism so they too can
move under, and expand upon, these sound concepts providing a quality
life for all.
152 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Notes
1 See above footnote. Run a Google/Nexus-Lexus Internet search.
2 Ibid and Parenti, To Kill a Nation, Chapter 10, p. 105. Check Jane’s Defense Weekly, especially the
May 10, 1999 issue. In Dollars for Terror, Chapter 10, Richard Labeviere explains that Special
Operations Command (SOCOM) overseas MPRI and other private military groups and
interfaces between those groups and the Pentagon; Linda Robinson, “America’s Secret
Armies,” U.S. News & World Report (November 4, 2002), pp. 38-43.
3 Ibid; Run a Google/Nexus-Lexus Internet search and check later articles and books by those
and World Politics Today (New York: Ocean Press, 2000), p. 209.
5 “Big Lie Exposed,” Workers World, April 12, 2001.
7 See endnote 1. For reduced Serbian losses: Parenti, To Kill a Nation, Chapter 16; Richard J.
Newman, “A Kosovo Numbers Game,” U.S. News & World Report, July 12, 1999, p. 36.
8 J.W. Smith, Economic Democracy: The Political Struggle of the Twenty-First Century (www.ied.info/:
11 Fidel Castro, Capitalism in Crisis: Globalization and World Politics Today (New York:
Ocean Press, 2000), pp. 215-17. James Bamford, Body of Secrets: Anatomy of the Ultra Secret
National Security Agency (New York: Doubleday, 2001), pp. 70-75.
12 Parenti, To Kill a Nation, pp. 12, 28-29, Chapter 15.
13 Jaroslav Vanek, The Labor Managed Economy (London: Cornell University Press, 1977).
16 Deirdre Griswold, “Marxism, Reformism and Anarchism: Lessons from a Steel Mill in
2002.), pp. 27-33; Michel Chossudovsky, “United States War Machine: Revving the Engines
of World War III, CovertAction Quarterly (Fall 2002), pp. 41-46.
IMF/World Bank/GATT/.NAFTA/WTO/MAI/GATS/FTAA Colossus 153
The entire world wants TVs, stereos, cars, nice homes, and all else they see
in movies and on TV screens. So globalization is going to happen. The
problem is not globalization per se; it is corporations structuring world
property rights to their advantage, a continual expansion of inequality
structured in law through privatization of the commons.
Structuring inequality into law (restricting rights to the commons for
some and expanding the rights of others) has been an integral part of the
formation of civilizations. The first person powerful enough to claim title to
a piece of valuable and productive land could claim the wealth produced
while sitting in idleness and splendor.
Anyone claiming such rights in a primitive culture would be
immediately challenged. Communal rights were established so each could
claim their share of the fruits of the earth. But claims of private ownership
were eventually made by powerful people and the taking away of others’
rights to the commons began. Powerful people (those first idle people
eventually called aristocrats) over the centuries, piece by piece, claimed title
to the land and at the peak of aristocratic power there was no common-use
land left. Excessive rights for the powerful to the wealth produced by
money and technology were also structured in law.
The origin of today’s private property system of exclusive title to
nature’s wealth was feudalism. The revolts of the common people (the
America Revolution, the French Revolution, and many internal political
battles) slowly eroded feudal rights. Due to the threat of more revolts, some
of the rights of the commons were returned to the people through the
common people being permitted residual-feudal exclusive title to land.a
a Due to revolutions and threats of revolutions, aristocracy had to share rights or lose all
excessive rights. This set the pattern of today’s rights. Each time a power-structure is under
threat, to gain loyalty more rights are given to the people. This is seen most clearly in access
to technology, finance capital, and markets being given to a prostrate Western Europe,
Japan, and the Asian tigers after WWII so as to stop fast expanding socialism. The unwritten
154 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
The next gain in rights for the common people was the broad expanse
of America, Australia, and parts of Africa. Although powerbrokers
attempted to establish exclusive rights to land for themselves, they could
not do it. Though it worked well to exclude the natives who had no political
rights, so long as white immigrants could go over the next hill and squat on
unclaimed land, there was no one available to work those openly-
monopolized lands. As rights to land in America spreading to the common
people became known, the threat of revolution expanded those same rights
in Europe.
To assure loyalty from the diverse populations within the German
empire, Bismarck introduced a form of Social Security. Then labor took
over Russia in 1917 and promised full blown social security to all their
citizens from birth to death. Labor throughout the world took notice. Thus,
to prevent a ballot box revolution during the Great Depression of the
1930s, powerbrokers within the imperial centers had no choice but to grant
more rights to the masses. Social Security, unemployment insurance, and
welfare rights became the norm (not only in Fascist countries but especially
in those nations).
Overthrowing governments controlled by labor (the Soviet Union) was
an essential part of the war plans of both the Axis powers and the entire
West. After WWII, those plans were in shatters. Soviet influence now
extended across half of Europe.
The rapid rebuilding of the shattered Eastern Europeans under labor
governments, the much less damaged Western nations failing to rebuild
their economies under Adam Smith philosophy, and the rapid expansion of
governments by labor in Asia, frightened the managers of Western states.
Adam Smith philosophy was totally abandoned and Friedrich List
philosophy was fully embraced; financial and technological support was
poured into Western Europe and the periphery countries of Asia, Japan,
Taiwan, and South Korea. With the possible exception of the masses
granted rights to land and technology as Europeans settled America, this
was the greatest gain of rights for the common people.
contract to pay labor well while that battle was being fought (the Cold War) was also an
increase in rights.
Before the crisis of fast expanding socialism, which was little more than reclaiming the
commons, the operative economic philosophy was to give nothing to anybody, charge all the
market would bear, and pay the lowest possible price. That this was little more than a
philosophy to protect wealth and power (a monopoly) can be easily ascertained by noticing
how fast the wealth spread when allies were needed and Adam Smith philosophy was
replaced by the opposite philosophy, give them all they need (technology, finance, and access
to markets) and pay them well.
Take note in the beginning and concluding chapters how fast the world could develop
and poverty eliminated under democratic-cooperative-capitalism. The concept is not new
with us; it was always practiced whenever allies were needed to suppress an expansion of
those same rights to those outside an allied imperial-center-of-capital.
IMF/World Bank/GATT/.NAFTA/WTO/MAI/GATS/FTAA Colossus 155
After WWII, the U.S. State Department “devoted a great deal of time and
energy formulating the legal structure” to limit others’ rights to place
conditions on trade within their country:6
[A]ny member can challenge, through the WTO, any law of another member
country that it believes deprives it of benefits it is expected to receive from
the new trade rules. This includes virtually any law that requires import goods
to meet local or national health, safety, labor, or environmental standards that
158 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
only the debt. The gains of the Arab cartel were largely erased as the value of
their money was essentially halved and the developed nations retained their
subtle monopolization of world capital in the form of a $1.7-trillion debt trap
for the developing world (1998 [now $2-trillion, 2002]) which could only be
paid off through sales of valuable resources.13
If labor in the developing world had been better paid that surplus capital
would have built industry to service that market. But the combination of
low wages on the periphery of empire, low commodity prices, and debt, is
an excellent method of guaranteeing the world’s natural resources are
reserved for populations within the imperial-centers-of-capital:
Debt is an efficient tool. It ensures access to other peoples’ raw materials and
infrastructure on the cheapest possible terms. Dozens of countries must
compete for shrinking export markets and can export only a limited range of
products because of Northern protectionism and their lack of cash to invest
in diversification. Market saturation ensues, reducing exporters’ income to a
bare minimum while the North enjoys huge savings.... The IMF cannot seem
to understand that investing in ... [a] healthy, well-fed, literate population ... is
the most intelligent economic choice a country can make.15
By 1996, developing world commodity export prices had fallen 60% and are
still falling.16 The steadily lowering of commodity export prices and the
resultant steadily increasing poverty in the developing world, is a record of
the success of the IMF/World Bank/GATT/NAFTA/WTO/MAI/
GATS/FTAA/military colossus in maintaining access to, and low prices
for, the world’s labor and natural resources:
Structural Adjustment [demanded by the IMF] is best summed up in four
words: earn more, spend less. While such advice might be valid if it were
given to only a few countries at once, dozens of debtors are now attempting
to earn more by exporting whatever they have at hand; particularly natural
resources including minerals, tropical crops, timber, meat and fish. With so
many jostling for a share of limited world markets, prices plummet, forcing
governments to seek ever-higher levels of exports in a desperate attempt to
keep their hard currency revenues stable. The “export-led growth” model on
IMF/World Bank/GATT/.NAFTA/WTO/MAI/GATS/FTAA Colossus 161
which the fund and the World Bank insist is a purely extractive one involving
more the “mining” than the management—much less conservation—of
resources.17
As American citizens have won lawsuits against banks for their defaulting
on loans that were loaned less blatantly irresponsible—and as “every debt
crisis in history since Solon of Athens has ended in inflation, bankruptcy or
war”21—the wealthy world should cancel those unpayable, unjust debts.
With a market value as low as 14.75-cents on the $1 and an average of 28-
cents on the $1,22 the supposed value of those $2-trillion in loans are already
largely gone anyway and the remaining value will melt if, or should we say
162 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
a fraction of true value. With capitalists on the periphery now owning much
less of their nation’s wealth, economic activity on that periphery cannot
return immediately to its previous vigor:
However, if the increased wealth flowing to the center of empire trickles
down to the masses through both lower prices and buying power generated
from stock market profits, it is possible for the center to be more vigorous
than ever. But a collapse of Western stock markets would eliminate the
trickling down of wealth and reduce purchases. That reduction could multiply
through the economy, and the recessions and depressions on the periphery
will have come home to the imperial-centers-of-capital. A substantial
softening of European and American economies would blow back upon the
already collapsed economies of Southeast Asia and put heavy pressure on the
Chinese economy. If economies fall to that level, only relaxing the
monopolization of finance capital and restructuring world trade (meaning
equal rights, equal access to technology and capital, equal trade, etc., along the
guidelines [in the Conclusion]) can establish a vigorous world economy. 23
the long run, if capital insists on looking only at their short-term profits, it
is a race to the bottom:
So long as global productive capacity exceeds global demand by such
extravagant margins, somebody somewhere in the world has to keep closing
factories, old and new.... South Korea will be losing jobs to cheap labor in
Thailand and even China may someday lose factories to Bangladesh.26
Japan’s industrial capacity has operated at 65.5% for 12 years. By 2003 the
entire industrialized world was producing at the same two-thirds capacity.27
With enormous world over-capacity and so little buying power within their
economies, the developing world can neither buy the products of industry
nor build industry to produce for their own people.
Neither can industry or markets in the imperial centers be sustained.
The Friedrich List protection philosophy of giving key countries on the
periphery of empire enough industry and market share to gain their loyalty
and stop fast expanding socialism permitted substantial capital to be built
on that periphery. The low wages in the industries of the latest countries to
attempt to develop and the lowering of wages within previously fast
developing countries, whose economies and/or currencies have collapsed,
does not permit those workers to buy the products they produce. Thus
most of that production must, under fierce competition, be marketed to the
wealthy world. So long as Adam Smith free trade is practiced, the low prices
those products can command will eventually hollow out the economies of
America and Europe:
The world’s existing structure of manufacturing facilities, constantly being
expanded on cheap labor and new technologies, can now turn out far more
goods than the world’s consumers can afford to buy.... The auto industry is an
uncomplicated example: Auto factories worldwide have the capacity to
produce 45-million cars annually for a market that, in the best years, will buy
no more than 35-million cars.... Somebody has to close his auto factory and
stop producing.28
This is economic insanity. Perfectly good industries are shut down in the
imperial centers and rebuilt on the periphery. When those industries shut
down, local businesses close for lack of customers and the values of both
homes and commercial property collapses. But, due to their underpaid
labor, equal values are not established on the periphery. Through the excess
profits of traders, those values show up in stock markets. “There is currently
no mechanism within the market system to build consumer buying power and implant this
new technology where it is badly needed while keeping the already producing factories
servicing the already established market.”29
Under the current subtle-monopoly system designed to reserve the
wonders of the wealth-producing-process for the powerful, those industries can
be built quickly. But the markets of an efficiently functioning economic
IMF/World Bank/GATT/.NAFTA/WTO/MAI/GATS/FTAA Colossus 165
a Statistical Abstract of the U.S., 1990, pp. 463, 734, charts 752, 1295 (check gross stock, total;
value added by manufacture; gross book value of depreciable assets). These statistics
demonstrate that each factory reproduces its value every ten months and that there is
approximately $21-trillion worth of reproducible social capital and $1-trillion worth of
industrial capital. Professor Seymour Melman, probably the leading authority on military
waste; Mr. Greg Bishak, of the National Commission for Economic Conversion and
Disarmament; and William Greider, Who Will Tell the People? (New York: Simon and
Schuster, 1992), p. 370, judge U.S. industry wasted on arms at roughly 20%.
b We are only calculating sustainable development at the level of technological efficiency of
the year 2000. Paul Hawken, Amory Lovings, and L. Hunter Lovins, in their pathbreaking
work Natural Capitalism: Creating the Next Industrial Revolution, point out that increased
efficiencies of technology will eventually be able to produce “four, ten, or even a hundred
times as much benefit from each unit of energy, water, materials, or anything else borrowed
from the planet and consumed.” Paul Hawken, Natural Capitalism: Creating the Next Industrial
Revolution (New York: Little Brown and Company, 1999), p. 8. See also Brian Milani,
Designing the Green Economy: The Postindustrial Alternative to Corporate Globalization (New York:
Rowman & Littlefield, 2000).
IMF/World Bank/GATT/.NAFTA/WTO/MAI/GATS/FTAA Colossus 171
above calculation, one would consider 14% of that—or under $900 industrial
capacity per person—as adequate for an efficient, peaceful society.a Allowing
3.5-billion people without modern tools, $3.15-trillion of industrial capital is
needed to develop the world to a sustainable level. That is 18.5% the amount
spent on arms by the world since WWII.
Assuming it would require 45 years for the developing world to be
educated and to build social capital as it was being given industrial capital, and
assuming a doubling of the developing world’s population in that time span, it
would require $6.3-trillion. That larger figure would be only $140-billion
annually, or 14% of the $1-trillion spent on arms each year worldwide at the
time of the Soviet collapse. Until that collapse, NATO and Warsaw Pact
countries accounted for 86% of that expenditure, or about $860-billion
(1990), and the Western alliance spent well over half of that. Thus it would
require only 14% of the money habitually spent on arms by the world during the Cold War
to industrialize the world. As the Eastern bloc has collapsed, this leaves only the
West, but the $140-billion a year needed to industrialize the world is only 28%
of that spent by the West to win the Cold War (48% of that spent annually by
the United States alone).b
a That is about $3,600 worth of industrial capital per family and $100,000 worth of social
capital.
b Smith, Economic Democracy, updated and expanded 4th edition, Chapter 23. When one
includes the National Security Agency, the CIA, and weapons programs carried out under
the umbrella of the Atomic Energy Commission and Energy Department, the military
budget was at least $350-billion, as opposed to the $292-billion official military budget we
are using (those year 2000 figures are expected to climb to over $450-billion by 2007).
Between $4-trillion and $5-trillion was spent on nuclear arms alone, mostly under cover of
the Energy Department, since 1945 (Jonathan S. Landay, “Study Reveals U.S. Has Spent $4-
Trillion on Nukes Since ‘45,” The Christian Science Monitor, July 12, 1995, p. 3). See also David
Moberg, “Cutting the U.S. Military: How Low Can We Go?” In These Times, February 12-18,
1992, p. 3; “U.S. Becomes Biggest Dealer of Arms in Worldwide Market,” The Spokesman
Review, October 15, 1992, p. A2; William D. Hartung, “Why Sell Arms?” World Policy Journal
(Spring 1993), p. 57.
c Assume a region with no tractors was to build a tractor factory to produce the latest
technology tractors. Allow 20 years to capitalize that region with tractors. Once capitalized,
replacement needs will drop to under 20% the productive capacity of those factories. That
holds true for all other machinery and products. This is why subtle-monopoly capitalism
must look to export markets. It is either export or shrink in size.
172 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Notes
1 Lester Thurow, The Future of Capitalism: How Today’s Economic Forces Shape Tomorrow’s World
First Century (New York: Monthly Review Press, 2001), pp. 9-10.
3 Howard Wachtel, “Labor’s Stake in WTO,” The American Prospect (March/April 1998), pp. 34-
38.
4 Don Wiener, “Will GATT Negotiators Trade Away the Future?” In These Times, February
12-18, 1992, p. 7. See also Chakravarthi Raghavan, Recolonization: GATT, the Uruguay Round
& the Developing World. London: Zed Books, 1990.
5 David C. Korten, When Corporations Rule the World (West Hartford, CT, Kumarian Press and
1986), p. 120.
7 Korten, When Corporations Rule the World, pp. 174-75; Susan Strange, The Retreat of the State: The
Diffusion of Power in the Global Economy (Cambridge, UK: Cambridge Studies in International
Relations, number 49, 1998); Raghavan, Recolonization.
8 Tabb, The Amoral Elephant, p. 196.
9 Speech by Cuban President Fidel Castro at the Group of 77 South Summit Conference, April,
2, 2000.
10 Joseph E. Stiglitz, Globalization and its Discontents (WW Norton: New York: 2002).
11 Laura Karmatz, Alisha Labi, Joan Levinstein, Special Report, “States at War,” Time,
November 9, 1998, pp. 40-54; Donald L, Bartlett, James B. Steele, “Fantasy Island and
Other Perfectly Legal Ways that Big companies Manage to avoid Billions in Federal Taxes,”
Time, November 16, 1998, pp. 79-93; Donald L Bartlett, James B. Steele, “Paying a Price for
Polluters,” Time, November 23, 1998, pp. 72-82; The Banneker Center’s Corporate Welfare
Shame Links, http://www.progress.org/banneker/ cw.html; Thomas Omestat, "Addicted
to Sanctions," U.S. News & World Report, June 15, 1998, pp. 30-31.
IMF/World Bank/GATT/.NAFTA/WTO/MAI/GATS/FTAA Colossus 173
12 Arjun Makhijani, From Global Capitalism to Economic Justice (New York: Apex Press, 1992), p.
159.
13 J.W. Smith, Economic Democracy: The Political Struggle of the Twenty-First Century, updated and
expanded 3rd edition, (www.ied.info/: The Institute for Economic Democracy, 2003),
Chapter 15.
14 Joel Kurtzman, The Death of Money (New York: Simon and Schuster, 1993), p. 72.
15 Susan George, A Fate Worse Than Debt, (New York: Grove Weidenfeld, 1990), pp. 143, 187,
235.
16 Lester Thurow, The Future of Capitalism, p. 67. See also, Peter Gowan, The Global Gamble:
Washington’s Faustian Bid for World Dominance (New York: verso, 1999), pp. 95-138, especially
pp. 114-15; John Gray, False Dawn (New York: The Free Press, 1998) and Richard C.
Longworth, Global Squeeze: The Coming Crisis of First-World Nations (Chicago: Contemporary
Books, 1999.
17 Susan George, The Debt Boomerang (San Francisco: Westview Press, 1992), pp. 2-3.
18 Greider, Secrets of the Temple, pp. 707, 581-82. See also Susan George, Fabrizio Sabelli, Faith
and Credit (San Francisco: Westview Press, 1994), pp. 80-84, 215.
19 Lester Thurow, Head to Head: The Coming Economic Battle among Japan, Europe, and America (New
22 CNN News (June 28, 1990); David Felix, “Latin America’s Debt Crisis,” World Policy Journal
24 Ibid, p. 196.
25 Michael Moffitt, “Shocks, Deadlocks, and Scorched Earth,” World Policy Journal (Fall, 1987),
399-400.
27 Lester Thurow, Building Wealth: The New Rules for Individuals, Companies, and Nations in a
Knowledge-Based Economy (New York: HarperCollins, 2000). See also, Jeff Faux, “The
Austerity Trap and the Growth Alternative,” World Policy Journal, (Summer, 1988), p. 375. For
a view of how these policies will eventually destroy the imperial centers read Eamon Fingleton,
Unsustainable: How Economic Dogma is Destroying American Prosperity (New York: ThunderMouth Press,
2003).
28 Greider, Who Will Tell the People, p. 399.
29 Smith, Economic Democracy, updated and expanded 3rd edition, Chapter 18.
30 Ibid, p. 197.
31 Lester Thurow, Head to Head: The Coming Economic Battle between Japan, Europe, and America
33 Dean Acheson, Present at the Creation (New York: W.W. Norton, 1987), pp. 382-84.
34 Adam Smith, Wealth of Nations, Modern Library edition (New York: Random House, 1965),
p. 64.
35 Gerald Epstein, “Mortgaging America,” World Policy Journal (Winter 1990-91), especially pp.
37, 53.
36 William Greider, Who Will Tell the People? (New York: Simon and Schuster, 1992), pp. 402-03.
37 Smith, Economic Democracy, updated and expanded 3rd edition, Chapter 22.
174 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
1995), p. 35; Jeremy Rifkin, Entropy: Into the Greenhouse World (New York: Bantam Books,
1989), p. 233; Richard J. Barnet, John Cavanaugh, Global Dreams: Imperial Corporations and the
New World Order (New York: Simon & Schuster, 1994), pp. 177-178.
Democratic-Cooperative (superefficient) Capitalism 175
who are employed. Sharing the remaining productive jobs within the
imperial centers would reduce their workweek to 2-to-3 days per week,
employ all able-bodied workers, and eliminate poverty. Equal pay for equal
work on the periphery would provide buying power and immediately melt
the invisible economic borders which currently guide the manufactured
wealth, produced primarily by the low-paid, into the hands of the well-paid.
Grossly underpaid workers would no longer be toiling to produce products
and profits for the powerful and wealthy. Once wages are standardized
internationally, each person in each society will be equally paid for equally-
productive labor and/or earning honest profits.
As development of the poor regions improves and living standards
increase, addressing population-related issues in order to avoid
overstressing the resource and ecological capacity of the earth will be even
more important. With the most Catholic country in the world, Italy, having
a birth rate per family (1.29) far below replacement levels and Germany’s
and Japan’s birth rates (1.51 and 1.53) also well below replacement rates,
that is an attainable goal.
The buying power for a healthy economy comes from wages paid to
productive labor. Those earnings are spent for family needs and that money is
spent again and again as it is passed from hand to hand to purchase
necessary food, fiber, shelter, and services (the economic multiplier). Thus
care must be taken by both the developed and developing world for each
region (small and medium sized nations must ally) to produce most of their
own food and consumer products and provide most of their own services.
With the wealthy developed world sincerely promoting equality in
world trade through relinquishing their subtle monopolies on resources,
technology, and finance capital, and with that newly-produced wealth
relatively equally shared in the developing region through equality in wages
and with equal access to jobs, poverty will quickly be alleviated.
Powerful nations currently control the world. That control is the
opposite of what is preached (peace, freedom, justice, rights, and majority rule) by
those same nations. If peace and prosperity for all is ever to become a
reality, this offer by the powerful for equality of rights and elimination of
poverty must be made, sincerely, to all nations of the world:
• The wealthy world will turn their war industries towards producing
industrial technology for any nation or region of the world that
agrees to eliminate terrorism, that agrees to reduce their military to
a level that provides internal security but leaves no offensive
capabilities, and that agrees to provide full political and economic
rights to all its citizens, including women and minorities. These
rights to include: a constitutional government, democratic
elections, freedom of speech, freedom of religion, and separation
of church and state.
Democratic-Cooperative (superefficient) Capitalism 177
a For a deeper analysis of this outline of developing the world to a sustainable level and
eliminating poverty and terrorism, read Part III of this author’s Economic Democracy: The
Political Struggle of the Twenty-First Century, updated and expanded 4th edition, (www.ied.info/:
The Institute for Economic Democracy, 2003).
178 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
It remains for all weak nations of a region to ally together to gain their
freedom, just as, although that reality is never openly acknowledged, the
powerful nations have allied together. Once allied together, or better yet,
fully federated, the world’s weak nations will have power. With that power
they can negotiate to trade natural resources for technology, as per the
guidelines for world development above, and they can negotiate for equality
of pay for equally-productive work. To not do so is to stay in poverty and
watch their natural wealth be continually transformed into someone else’s
manufactured and capitalized wealth.
Equal rights within the wealth-producing-process are just as important as
political rights. With political rights you are politically free but may still be
ill-clothed, poorly housed, and can starve. Add equal economic rights for all
people to the democratic rights they now have through efficient and
productive democratic-cooperative-(superefficient)-capitalism and all people can be
well-fed, well-clothed, and live in a comfortable home.
Certainly those powerful nations will manufacture excuses as they
always have; you will hear the leaders of these new breaks for freedom are
killers, dictators, and terrorists; and they will, as they always have, send in
the military to suppress these allied breaks for freedom. But, if these newly
allied or fully federated nations firmly hold their ground; a few hundreds of
millions will no longer be able to preach peace, freedom, justice, rights, and
majority rule while simultaneously using their military to suppress those
very same rights for billions of people.
Mahatma Gandhi of India showed that to the world. When the people
of India stood up together, refused to fight, but also refused to accept
British rule, the British had to leave. The availability of natural resources
limits the production of wealth and those resources are primarily in the
impoverished world. If the developing world refuses to work those mines,
cut those forests, pump that oil, drive those trucks, or load those ships, the
powerful nations will have no choice except to negotiate in good faith.a
But before people can organize they must fully understand why they are
poor while others are rich. Our research provides those simple reasons why
and also maps the road out of poverty. Democratic-cooperative-(superefficient)-
capitalism is that road.
In Chapter seven we documented the expenditures of hundreds of
billions of dollars by the imperial-centers-of-capital to protect their wealth and
power through controlling the belief systems of the world. But that war of
words is a war they cannot win if the developing world seriously engages
them in that battle. The truth is too simple and too obvious.
For the masses to gain the knowledge to win this war of words, we ask
that each who come across our research and gain this understanding to
a Germany’s industrial sector was occupied by France after WWII. When German labor
refused to work, France was forced to abandon the occupation.
Democratic-Cooperative (superefficient) Capitalism 181
inform their personal contacts and have them inform all who trust their
judgment. Many have, or sense, these fundamentals of poverty already; they
just have not learned how to articulate them. A quick read of our research
will provide the articulation tools to go head to head with those imposing
the very philosophy that is creating their poverty. It is a debate the
powerbrokers and their negotiators cannot win once the masses and their
negotiators are armed with the simple tools of truth.
Form study groups to look deeply into every aspect of why there is
poverty and how to eliminate it. Professors, organize your peers and
students to study this in depth. This research is in use in university classes
on World Conflict and Poverty. A democratic-cooperative-(superefficient)-capitalism
group has formed specifically so all people and your students can obtain
these books at a reasonable price.
Expand these concepts through your books.a If all this were to happen,
this knowledge will sweep across the world and not even the powerful
nation’s Mighty Wurlitzer could stop it. The truth is too simple and sensible.
Being fully free is having full and equal economic rights. If the world’s
poor share this knowledge among themselves, and especially if developing
world universities and governments accept the job of informing the masses,
no amount of propaganda and bluster can stop the world from gaining their
full rights and rising out of poverty.
Little of depth appears on the mainstream media but Argentina’s,
Brazil’s, Uruguay’s, Ecuador’s, and many other economies are in serious
trouble. In Venezuela a Bolivarian Revolution underway is spreading to
other countries. The Venezuelan government once received 80% of the
price of oil revenues, today it receives 20%, and the revolution is intent on a
return to the previous share. The revolution in Columbia has the same
underlying causes. More and more are thinking of joining together to break
out of capitalism’s stranglehold (search for http://www.narconews.com/,
Heinz Dieterich Steffan, Venezuela).
Why do our politicians and evening news not inform us? Because those
in power are primarily of the same mind and refuse to recognize that they
are an empire let alone that their empire has no clothes. There is no left in
the American political and media system, only a right and an extreme right
and that nation is moving further right all the time. This thesis is not to the
left, it is in the middle. We are not proposing government ownership of
industry. We are proposing restructuring residual-feudal exclusive property
rights to conditional rights which provide full and equal rights to all and
maximize the efficiencies of the wealth-producing-process. The solid logic and
the enormous gains possible under democratic-cooperative-(superefficient)-capitalism
permits the misnamed left (really the middle) to regain their voice.
aBooks with a clear focus and easily understood will be listed and promoted through our
cooperative capitalism project. For information, please check the endpages.
182 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
economies and in world trade) and there is enough on this earth for
everybody.
Democratic-Cooperative-(Superefficient)-Capitalism,
Restructuring all Societies to a Life of Peace & Leisure
Emerging nations can avoid being locked into the imperial centers
enormously wasteful distribution system. With a modern communication
184 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
job, instantly eliminates all monopolies and replaces them with full and
equal rights for all. (In The World’s Wasted Wealth by this author or at
http://www.ied.info/books/www/ you can read about those social-
structure-monopolies structured in law.)
Once those monopolies are restructured to full and equal rights for all
through applying Henry George principles it only requires applying the
principle of each person having rights to a productive job (which is also a key
tenet of Prout philosophy), we feel that under our philosophy many of the
institutions and all the goals of Prout will automatically come together.
The reason all that will come together is that, under a fully-applied
Henry George philosophy, virtually none of those monopolies can reform;
the excess rights of monopolists has been replaced by full and equal rights
for all. Prout pointing out the great gains in living standards under their
cooperative philosophy is paralleled by our pointing out that under
cooperative capitalism (though he does not use those terms, primarily a
Henry George concept) economic efficiency would increase equal to the
invention of money, the printing press, and electricity; poverty would
disappear in 10 years; and a sustainable quality life for all can be attained in
50 years.
We specifically point out, several times, that this system of full and
equal rights would be so efficient that it would strip the earth’s resources
and social planning would have to be imposed to protect resources and the
environment.
But the many aspects of exactly how society would structure itself to do
that we left up to the now-free people to decide. Prout did a good job
laying out potential social structures under which those decisions would be
made. The application of their concept of a fourth branch of government
to audit the accounts of the other three branches would go a long way
towards imposing honesty on upon what is now horribly corrupt.4 Stephan
Zarlenga points out the need of a money department which, if both were
established, would mean auditing would be a fifth branch of government.
. We feel the elimination of those monopolies along with a
constitutional right to a productive job with equal pay for equal work gives
full and equal rights to all and attains all the goals of Prout’s cooperatives.
Under conditional titles to nature’s wealth, as per Henry George
philosophy, those monopolies cannot reform, there will be no excess
(monopoly) profits, and competition will be so fierce that management can
claim no more than a just wage. Prices charged equals wages paid so there is
no surplus to allot to, or be monopolized by, anyone. With every job
efficient each person on earth can have a quality life while working only two
to three days per week, consumer prices would fall to reflect the waste
eliminated, and the economy would be so efficient that social control to
protect resources and the ecosystem would automatically form.
Democratic-Cooperative (superefficient) Capitalism 187
Full and equal rights will be the enormously powerful engine that
would run that economy and social oversight will be the leavening that will
guide it to sustainability and protection of resources and the ecosystem. We
give a few broad guidelines (equalization surcharges, resource depletion
taxes, creating regional trading currencies, rights to finance capital, et. al.)
and left it to the now fully-free people to define the exact social structures.
The variables were just too great for us to come any closer to laying out
a social structure. We like what Prout laid out but the human propensity for
guiding a little more (or a lot) to themselves and/or maintaining a status
quo is formidable and the potential for a command society may be a
problem. A combination of competition, rights, and social oversight was
the only way we could visualize society maximizing efficiency.
The methods of groups figuring out how to hang onto just a little more
than their fair share would be endless. As we feel humans are far more
generous and giving than they are greedy, there is the possibility that
Prout's emphasis on ethics and morality covers that. But we must also
remember that, historically, a lot of oppression has taken place under the
cover of ethics and morality.
Of the many messages in this book, the most important to remember is
that the wealthy world has allied together to retain control of the world’s
resources and the wealth-producing-process and the resulting inequalities in
trade has maintained the impoverishment of small, weak, nations. If those
weak nations are to provide a quality life for their people, they must ally
together, take control of their resources, and negotiate full and equal trading
rights.
Solidarity Economics has been around for a long time and it matches
well with both Prout’s theories and ours. An Internet search will find tons
of reading.
The final step for a prosperous world fully at peace is a federation of all
nations with the legal structure and mandate to guarantee full and equal
rights for all which is what we have, hopefully, put together. .
Notes
1 Herman E. Daly, Steady-State Economics (San Francisco: W.H. Freeman, 1977), p. 109. See also
Brian Milani, Designing the Green Economy: The Postindustrial Alternative to Corporate Globalization
(New York: Rowman & Littlefield, 2000).
2 Alan Weisman, “Nothing Wasted, Everything Gained,” Mother Jones, March/April, 1998,
pp. 56-59; William Kötke, The Final Empire (Portland, OR: Arrow Point Press, 1993), p. 36;
Stephanie Mills, In Service of the Wild: Restoring and Reinhabiting Damaged Land (Boston: Beacon
Press, 1995); John J. Berger, Ed., Environmental Restoration: Science and Strategies for Restoring the
Earth (Washington, DC: Island Press, 1990); William E. McClain, Illinois Prairie: Past and
Future: A Restoration Guide (Springfield, IL: Illinois Department of Conservation, 1986);
Jonathan Turk et. al., Ecosystems, Energy, Population (Toronto: W.B. Saunders Co., 1975); Alan
Dregson, Duncan Taylor, editors, Ecoforestry: The Art and Science of Sustainable Forest Use
(Gabriola Island, BC: New Society Publishers, 1997); Michael Pilarski, Restoration Forestry: An
International Guide to Sustainable Forestry Practices (Durango, CO: Kivaki Press, 1994); A Report
188 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
by The International Institute for Environment and Development and The World
Resources Institute, World Resources 1987: An Assessment of the Resource Base That Supports the
Global Economy (New York: Basic Books, 1987), p. 289; Alan Weisman, “Columbia’s Modern
City,” In Context (No 42, 1995), pp. 6-8; Lester Thurow, Head to Head: The Coming Economic
Battle Among Japan, Europe, and America (New York: William Morrow, 1992), p. 223; Jeremy
Rifkin, Entropy: Into the Greenhouse World (New York: Bantam Books, 1989), p. 220.
3 Dada Maheshvarananda, After Capitalism: Prout’s Vision for a New World (Washington DC:
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Index 203
Index
Academy Awards, 63 Cathars, 82-83
Acheson, Dean, 71 Ceku, General Agim, 129
Afghanistan, 102, 121-24, 141; trap, 123; Center for Anti-War Action, 138
Mujahideen, 121-22 Center for Democracy Foundation, 138
Africa, 6, 97-98, 119, 124, 148, 149-50, 154, Center for International Private Enterprise,
179, 190 138
Agent provocateurs, 75, 131 Central Intelligence Agency (CIA), 8, 60-63,
Al-Qaeda, 122, 129 66-69, 72-79, 80-81, 89-101, 115, 121-24,
Albania, 122, 129-35, 140 129-30, 139, 171
Allende, President Salvadore, 67, 96 Central Bank, 23-24, 29, 127-28, 136, 143, 177
Alsop, Joe and Stewart, 61 Chechnya, 122, 135
American Enterprise Institute, 64 Charles G Koch, David H Koch & Claude R
American Revolution, 83 Lambe Foundation, 63
Angola, 60, 97-98 Cheney, Vice President Dick, 93-94, 70
Arbenz, Jacobo, 96 Chiang Kai-shek,
Argentina, 42, 56, 148, 160-61, 181-82 Chile, 48, 60, 67, 96-97, 127
Armstrong, Leslie, Jury Foreman, 78 China, 37, 53, 56, 71, 73, 100, 103, 137, 142-
Asian tigers, 56, 143-48, 155, 162, 182 49, 162-64
Assassination, 61, 67-69, 75-81, 98-99, 122, Christian, 6-7, 82, 103-04, 129, 133-35, 142-43
129, 133, 140 E. Orthodox, 129, 133-35, 142
Atlantic Alliance, 113 Church Committee, 61, 89
Australia, 32, 52, 154 Civil War, Europe, 71; Russia, 122;
Austria, 114, 140 Yugoslavia, 129-32, 135
Azerbaijan, 134 Clark, General Wesley, 132
Basket of Commodities, 28-30, 189 Clay, Henry, 52
Batista, General, 98 COINTELPRO, Operation, 75, 79, 131
Battle of the Bulge, 110 Colby, William, 61, 122
Bay of Pigs, 78 Cold War, 6, 10, 12, 61-62, 66-76, 81, 83, 89-
Belgium, 74 101, 104, 110-13, 119, 133-37, 154-55, 162,
Belgrade Center for Human Rights, 138 170-71
Berlin, Isaiah, 62 Coleman, Peter, 61-62
Bessarabia, 109 Columbia, 181
Biafra, 96 Commons, A, 1-6, 12-14, 18, 21-25, 28-39, 46,
Bismarck, 56, 154 153-55, 183-84
Black Death, 48 Common Market, 165, 169
Black-ops, 66 Communism, 61, 66, 95, 101-34, 139, 155
BND, German Intelligence, 122, 129 Comparative advantage, 33, 47, 91, 168
Bohlen, 111 Congo, 60, 98
Bologna railway station, 74 Congress for Cultural Freedom, 61-62, 73
Bosnia-Herzegovina, Federation, 128-30 Congressional Research Service, 25, 40
Botswana, 98, 158 Continental blockade system, 51
Bottis, Paul, 25, 40 Coordinating Committee for Multilateral
Brazil, 56, 89, 148, 160, 163, 181-82 Export Controls (Cocom), 113
Bretton Woods, 156 Cottin, Heather, 63, 139
British, Enclosure Acts, 4, 48, MI6, 90 Covert warfare, 7-8, 45, 47. 56. 60-63, 66, 68,
Brougham, Lord, 52 71-78, 90, 95, 99, 104, 121-23, 131-32, 135-
Brzezinski, Zbigniew, 123-24 39, 158, 167
Bulgaria, 136, 139 Covington, Sally, 64
Bush, President George W., 70, 74, 93-94; Croatia, 128-30, 133-35, 139
President H.W Bush, 119 Crusades, 82, 103
Canada, 32, 52, 138, 156 Cuba, 32, 48, 60, 78, 98-103, 120, 127, 158
Capital accumulation, 11, 25, 44-45, 56, Currency, Act of 1764, 52; collapse, 45, 116
91, 167-68, 172, 178 Cyprus, 114
Carter, President Jimmy, 121, 123 Czechoslovakia, 143
Cartels, 61, 159-60 Dark Ages, 104
Carthage Foundation, 63 Dayton Accords, 128-29
Caspian, 134 Death Squads, 69-69, 78-79, 96-97, 130, 139-
Castro, President Fidel, 78, 98, 100-01, 113-14 41
204 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Derivatives, 22 General Agreement on Trade in Services
Destabilize, 13, 63, 67-68, 71-72, 75-76, 79, (GATS), 7, 153, 156, 158, 160
89, 94-105, 109, 113-16, 121-24, 127-42, General Agreement on Trades and Tariffs
148, 167, 177 (GATT), 7, 153, 156-60
Dinarides Thrust, 134 Genocide, 131-33
Dominican Mendicant Order, 82 Genscher, Hans Dietrich, 128
Dupin, Charles, 51 George, Henry, x, 2-3, 10-14, 18, 21, 41, 65-
DynCorp, 140 66, 175, 183, 185-86, 189
East Germany, 99, 139, 144, 147, 165-66 Georgia, Soviet, 134
East Timor, 135 Germany, 32, 41, 45, 50, 56, 62, 71-74, 83-84,
Eastern Europe, 105, 111-13, 135, 135-39, 99, 109-14, 120-22, 128-39, 143-44, 147-48,
142-44, 154, 166, 182; Front, 110 154, 165-66, 176, 180; BND, 122, 129
Ecological tax, 20 Gill, Professor Stephen, 54
Economic multiplier, see multiplier factor Gladio, Operation, 74
Ecosystems, 169, 178, 186-87 Gowan, Professor Peter, 54-55, 113-14
Economic warfare, 7, 14, 45, 137, 158-59, 162, Grand strategy, 47, 61, 71-73, 116, 136, 142
185 Gray, Professor John, 55, 175
Egypt, 188 Great Britain, 4, 6, 32, 48-56, 71-72, 81,
El Salvador, 60, 97 84, 89-96, 110, 148, 180
Embargo, 81-95, 98, 128, 134-36, 159, 167, 177 Great Depression, 4, 10-12, 71, 154, 162
Enabling Act, 74, 84 Greece, 72, 135, 165-66, 169
England, 48-52, 92, 110, 148 Greenspan, Alan, 54
Environment, 7, 24, 35, 41, 61, 157, 165, 168- Greider, William, 161, 168, 170
69, 175, 178, 186 Guatemala, 96-97, Truth Commission, 96
Equalizing surcharges (managed trade), 167- Guilds, 4
69, 177-79, 187 Gulf Oil, 90
Eritrea, 135 Gulf War, 91, 93-94, 102
Estonia, 109 GUUAM, 134
Ethiopia, 135 Gypsies, 130, 133
European Movement of Serbia, 131 Hague, 140-41
European Union (EU), 114, 150, 166-67, 169; Hampton, Fred, 75
Common Market, 165, 169; community Hanseatic traders, 48
(EC), 113-14, 165; Movement of Serbia, Harbor Freight, 145-46
138 Harriman, Averell, 61
Fascism, 12, 74, 84, 111, 133, 148-49, 154 Harry Salvatori Foundation, 63
Fathy, Hassan, 188 Harvard Institute for Int Dev. 115, 117
Federal Bureau of Investigation (FBI), Hawes, Phil, 188
75, 77, 132 Hayward, William, 190
Federal Reserve, 54 Heartland Institute, 65
Feudal property rights, 1-4, 9-14, 18-22, Heckscher, Eli F., 46
32, 47, 90, 117, 123, 153, 181, 184, Heiju, 102
206 Herder, Johann, 11
Financial warfare, 7, 14, 45, 127, 159, 162, 165 Hess, Rudolf, 110
Finland, 37, 109 Hitler, Adolph, 59, 74, 84, 111, 129-30, 137,
Florence, 47 139; Enabling Act, 74, 84
Foreign Operations Appropriations Bill, 128 Holy Land, 83
Fort Benning, 68 Hook, Sidney, 62
Foundations, 62-65, 114, 138, 175 Hoover Institution, 64
Fox, President Vicente, 68 House Select Committee on Assassinations,
France, 32, 49, 51, 73, 83, 110, 114, 129 77
Franciscan Mendicant Order, 82 House Un-American Activities Committee,
Free Cities of Europe, 3, 57, 91 63, 75
Free Congress Foundation, 64 Humanitarian Law Center, 138
Free Trade Area of the Americas (FTAA), 7, Hungary, 113, 135
153, 156, 158, 150 Hunt, E Howard, 78
Freeland, Chrystia, 117-18 Hussein, Saddam, 91, 94, 135, 141
French Revolution, 12, 83, 123, 143 Illuminati, 80, 83
Frontline States, 97-98 Indians, American, 6
Furiati, Claudia, 78, 80-81 Indonesia, 53, 72, 95, 135
G-17 economists, 138 Industrial Revolution, 10, 104
G7, 113-14 Inquisitions, 69, 82-83
International Criminal Court, 141
Index 205
International Criminal Tribunal (ICTY), 140- Martin Luther King, 69, 76, 79, 92
41 Marx, Karl, 11
International Monetary Fund (IMF), 7, 54, 63, McCarthyism, 63, 66, 68, 73, 75, 81
113-14, 127-28, 139, 143, 153, 158, 160 McGehee, Ralph, 68, 72
International Workers of the World Mercantilism, 5, 33, 46-48, 51, 80, 90, 115
(IWW, Wobblies], 75 Mexico, 68, 92, 143, 160, 163
Iran, 48, 89-95, 135 Middle Ages, 10, 69, 82, 100, 135
Iran-Iraq War, 93 Middle East, 62, 89-94
Iraq, 23, 48, 69, 76, 90-97, 120, 134-35, 182 Mighty Wurlitzer, 60, 63, 67-69, 73, 82, 90-96,
Italy. 32, 41, 73-76, 80, 110, 176 99-101, 109, 111, 121-23, 129-32, 137, 181
Jacobs, Dan, 96 Military Professional Resources (MPRI), 122,
Japan, 41, 53, 56, 62, 71-74, 80, 92, 110, 112, 129
143, 146, 148-49, 154-56, 162-64, 176, 179, Milosevic, President, 130, 133, 137, 140-42
182 Mobutu, Joseph, 98
Jerusalem, 103 Mossadeq, Dr. Mohammed, 89, 93
John M Olin Foundation, 63 Most Favored Nation (MFN), 146
JM Foundation, 63 Mozambique, 55, 91
Joint Chiefs of Staff, 101 Multiplier factor, see economic multiplier
Kehoe, Judge James W., 77 Mujahideen, 121-22
Kennedy, Bobby, 80; President John F., 76- Multilateral Agreement on Investments
80, 101 (MAI), 7, 153, 156-60
Kerensky, 65 Mumford, Lewis, 47
Khomeini, Ayatollah, 92 Muslim, 66, 82, 92, 94, 102-03, 121-22, 123-
King Philip IV, 83 24, 133
Kissinger, Henry, 90 Mussolini, 74
Knights Templar, 83 NAFTA, 7, 153, 156-60
Koestler, Arthur, 62 Namibia, 98
Korean War, 73-74, 101-02 Napoleon, 50-52, 84, 135, Codes, 84, 135
Korten, David, 61, 147 National Empowerment Television, 64
Kosovo, 129, 131-35, 139-41; KLA, 122, 129, National Endowment for Democracy (NED),
135 114, 138-39
Krehm, William, 146 National Security Council Directive 68 (NSC-
Kurds, 93 68), 71-74, 101, (NSD-133), 127; (NSD-
Kuwait, 93, 135 166), 121, 117; (NSD-54), 127; (NSC-4,
Lane, Mark, 76-79, 81 NSC-4A, NSC-10/2), 71
Lappé, Frances Moore, 33 National Union for Total Independence
Latin America, 62, 100, 143, 148-50, 182 (UNITA), 97
Latvia, 109, 130 NATO, 129-36, 139-44, 148, 171
Lebensraum, 137 Navigation Acts, 48, 138
Liberty Lobby, 78 Neibuhr, Reinhold, 62
Library of Alexandria, 104 NetNewsNow, 64
Library of Congress, 25, 40 Newman, John A., Tax lawyer, 25, 40
Libya, 48, 91, 93, 95 Nicaragua, 48, 60, 97, 127
Lippman, Walter, 61 Nice, Prosecutor Jeffrey, 141
List, Friedrich, 49-56, 111, 150-51, 154-55, Nigeria, 96, 160
162-65 Nixon, President Richard, 90
London School of Economics, 55 Nobel Prize, 158
Lucca, 47 Normandy, 110
Luce, Henry, 62 North Korea, 48, 102-03, 120
Lumumba, Patrice, 98 OECD, 159
MacArthur, General Douglas, 102 Office of Strategic Studies (OSS), 72
Macedonia, 122, 129 OPEC, 90-94, 159
Madagascar, 72 Operation Ajax, 90
Mafia, 74, 114 Operation COINTELPRO, 75, 79, 131
Maheshvarananda, Dada, 185 Operation Gladio, 74; Northwoods, 101;
Malaysia, 53, 72 Statewatch, 74; Cable Splicer, Garden Plot,
Manhattan Institute, 64 Chaos, 75; Bushwhacker, Broiler, Sizzle,
Mansoor, Feisal, 69 Shakedown, Dropshot, Trojan, Pincher,
Markovic, Rade, 141 and Frolic, 120
Marshall, George C., 62, 111-13; plan, 62 Oswald, Lee Harvey, 77
Martin, Professor Glen, 26-27 Pakistan, 121-22
Palast, Greg, 81, 77, 138, 158
206 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity
Panama, 68 State Policy Network, 65
Patriot Act, 73-74, 84 Stevia, 191
Peace of Versailles, 51 Stiglitz, Joseph, 158
Pentagon, 66, 92, 97, 121-24, 129, 132, 162 Stockwell, John, 97
Perkins, John, 14, 57, 185 Stone, I.F., 102
Pike Committee, 61 Strategies-of-tension, 60-62, 69, 71-77, 100-03
Pinochet, General, 96 Suharto, 95
Pirenne, Henri, 46 Sukarno, 95
Pitt, William, 50 Summers, Larry, 54
Poland, 109, 113 Taiwan, 53, 112, 154-55
Policy Fax, 65 Taliban, 102, 123-24, 141
Popular Movement for the Liberation of Thailand, 53, 164
Angola (MPLA), 98 Third Reich, 56
Portugal, 49, 165-66, 169 Three-Thirds Doctrine, 130
Pratt, Geronimo, 75 Thurow, Lester, 145, 161
Propaganda, 13, 35, 56, 60-63, 66, 71, 76-78, Transaction tax, 40, 119
84, 92, 96, 101, 121-23, 130-37, 151, 181 Trepca mines, 134
Prout, 185-87 Truman, Harry S., President, 71-72
Prouty, L. Fletcher, 76, 80, 99 Ukraine, 33, 134, 138
Quadrilateral Group of Trade Ministers United Fruit, 93, 96
(QUAD), 156 United Nations, 134, 175-77 (UNDP), 171
Radio Free Europe, 62; Liberty, 62 University of Cambridge, 81
Rambouillet, France, 129, 131 University of Ingolstadt, 83
Reichstag fire, 74, 84 University of North London, 54, 113
Rhee, Syngman, 101 Uruguay, 148, 181--82
Richardson, Bill, 134 Ustase, 130, 139
Romania, 130, 135-36 Uzbekistan, 134
Roosevelt, Kermit, 90 Vietnam, 60, 72, 75-76, 89, 95-96, 120; War,
Roosevelt, President Franklin D., 77 75, 95, 182
Rothmyer, Karen, 64 Voice of America, 62
Rousseau, Jean Jacques, 11 Wachtel, Howard, 156
Rubin, Robert, 54 Waldensians, 82-83
Rugova, Ibrahim, 140 Wallerstein, Immanuel, 46
Rumsfeld, Donald, 141 War Plans, Broiler, Sizzle, Shakedown,
Russell, Bertrand, 32, 62 Dropshot, Trojan, Pincher, and Frolic, 120
Russian Mafia, 114; Revolution, 109-10 War of 1812, 52, 96
Rwanda, 135 Warsaw Pact, 171
Sachs, Jeffrey, 115-17 Weir, Fred, 117
Saladin, 103 Weishaupt, Professor Adam, 83
Saunders, Frances Stoner, 61 West Germany, 165-66
Savak, 92 Western Europe, 71, 74, 109-13, 121, 134-37,
Savimbi, 98 140, 143-44, 154-55, 156, 166-67
Say, J.B., 50 Western Front, 110
Schlesinger, Arthur, 62 Western Hemisphere Institute for Security
School of the Americas, 68 Operations, 68
Shah of Iran, 90-92 Willan, Philip, 76, 80
Slavery, 6, 28, 142, 177 Williams, William Appleman, 5
Slovakia, 143-44 Winstanley, Gerard, 11
Slovenia, 129-30, 135, 139 Wisner, Frank, 61
Smith, Adam, 5-6, 20-21, 48-56, 111, World Bank, 7, 58, 120, 132, 135-36, 143, 146-
114-15, 149-51, 154, 164, 168, 207 50
Social Security, 10-12, 18154 World Trade Center, 92, 99, 121, 124, 133,
Socialist Workers Party (SWP), 75 162, 171
Soros, George, Destabilization Foundations, World Trade Organization (WTO), 7, 153,
63, 114, 138-39 156-60
South Africa, 97-98, 119 Yeltsin, President Boris, 117, 119
South Korea, 53, 101-02, 112, 154-55, 164 Young Socialist Alliance (YSA), 75
Soviet Union, 56, 71, 74, 83-84, 93, 110-21, Yugoslavia, 48, 60, 76, 102, 122, 124, 127-42
128, 139, 142, 154 Zaire, 98
Special Operations Command (SOCOM), 122 Zambia, 34, 98
Sri Lanka, 69 Zimbabwe, 98
Zoysa, Richard De, 69
207
ABOUT THE AUTHOR
With a Ph.D. in political economics, J.W. Smith has written broadly and
lectured widely at conferences around the world. This is his 5th book on the
causes and cures of world poverty.
J.W. Smith not only takes a different view from most economists his
deep research pushes dense and impossible to understand neoliberal
economics off the table and replaces it with sensible economics that we can
all understand. As he says, “neoliberal economics makes sense only within
the mental borders of an empire. As soon as one steps outside those
borders they make no sense at all. How could it? It is designed to lay claim
to the wealth of the periphery of empire?”
Smith's 20 years of deep study of economic history builds a new school
of thought. Where else do you read how wealth accumulation increases or
decreases exponentially with the differential in pay between equally
productive labor? That evolving from plunder by raids to plunder by trade
became the signature of "civilized" nations? That Adam Smith free trade
was specifically designed to entrench this system of laying claim to others
wealth? Or that no nation ever developed under that philosophy? The
exposure of these realities provide a new foundation upon which to
understand the world.
That understanding of economic history leads us to Smith's explanation
of how Western "democracies" evolved from feudalism and today’s
property rights laws retain the essentials of those feudal exclusive rights to
nature's bounty. The concept of these monopoly rights, which exclude the
weak from their rightful share, follows naturally.
Smith provides the historic foundation to understand how Western
"democracies" evolved from feudalism, that property rights still retain
feudal exclusive rights to nature's bounty, and that it is these monopoly
rights, excluding the weak from their rightful share as the powerful
continue the privatization of the commons, that impoverishes so many
people.
Smith looked deeply under the blanket of imposed “frameworks of
orientation” protecting the power structure and its stolen wealth and
concluded the debris of custom and law are the barriers preventing Western
societies from evolving into peaceful and far more productive societies.
Smith’s explanation of how the elimination of those monopolies
through expanding individual rights and competition through a modern
commons increasing economic efficiency equal to the invention of money,
writing, and electricity providing all with a quality life working only two to
three days per week; all while protecting the earth’s resources and
ecosphere, provides a ray of light on what we must do for a peaceful and
prosperous world.
A team to further research democratic-cooperative-(sueercharged)-capitalism has
formed. We welcome sincere and serious researchers to join us. The
208
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