IGP Mohammed Alhassan |
Last
week, the Ghana Police Service denied a report on the website of the Kofi Annan
International Training Centre that a group of 90 police officers were
undergoing training to be deployed in Somalia.
In the denial the Police Public Relations Officer, Mr Cephas Tetteh, added
that there are no plans for Ghanaian
security officers to be sent to Somalia for peacekeeping missions and urged the
public to disregard the report.
His
denial created the impression that there are currently no Ghanaian Police
officers in Somalia. We publish below an African Union (AU) news report on the
role that Ghana Police are currently playing in Somalia. This is contained on
the website of AMISOM, (African Mission in Somalia) (http://amisom-au.org/mission-profile/amisom-police/)
“Last
year, Somalia adopted a National Security and Stabilisation Plan which focuses
on strategic policy issues relating to security and rule of law, including
justice, and encompasses various civilian and military institutions that are
vital to national security. It acknowledges the role of AMISOM in facilitating
locally owned, comprehensive and broad‐based security sector
development.
The
AMISOM Police component has the mandate to train, mentor, monitor and advice
the Somali Police Force (SPF) with the aim of transforming it into a credible
and effective organisation adhering to strict international standards.
The
component currently has 363 police officers drawn from police officers drawn
from 7 African countries including Nigeria, Uganda, Zimbabwe, Sierra Leone,
Ghana and Gambia. These include a Senior Leadership Team, Individual
Police Officers and 2 Formed Police Units of 140 officers each. It is headed by
the AMISOM Police Comissioner, Dr. Charles Makono.
AMISOM
Police provide mentoring and advisory support to the SPF on basic police
duties, such as human rights observation, crime prevention strategies,
community policing and search procedures. It has conducted training for nearly
a third of the SPF’s 5000 officers including running a refresher course for
middle level officers, training new recruits as well as running courses in
traffic management and criminal investigation techniques.
AMISOM
Police has deployed two Formed Police Units in Mogadishu – the first to be
deployed by the African Union. The FPUs come from Uganda and Nigeria and play a
crucial role in ensuring improved security in the liberated areas through joint
patrols with the SPF, assisting in Public Order Management and provision of VIP
escorts as well as providing protection to Individual Police Officers to
co-locate with the SPF in as many police stations as possible.” Culled from http://amisom-au.org/mission-profile/amisom-police/
Editorial
Someone is Lying
A
week ago today, the Kofi Annan International Peacekeeping Training
Centre (KAIPTC) in Accra announced on their website that ninety Ghanaian police
officers were about to complete a training course at the Centre to strengthen the Peace Support Operations of
AMISOM in Somalia. Three days later, the Ghana Police Service came out to deny
the report.
Although
they accepted that the officers were undergoing training, they claimed that it
is a normal training arrangement that happens once every year for Ghana police
at the centre. For what? It is highly
strange that the internationally reputed Kofi Annan Centre would engage in
rumour-mongering or idle gossip about a national institution entrusted to them
to train for something else. How could it have happened that the Training
Centre had all the time misunderstood the type of training that they were
supposed to provide. Why would the Ghana
Police be training at the Peace-keeping centre?
To deal with the Bawku conflict?
They
should stop belittling our intelligence.
Why would the Kofi Annan Centre be concocting such a story and even add
that “the training is financed by the German Federal Foreign Office (AA) and
implemented with the support of German Agency for International Cooperation
(GIZ)”? Even if the Kofi Annan Centre were lying, what about the statement of
one of the trainees, ASP Bridget Dzakpasu, a Deputy District Commander who
said “the training has provided very
useful and practical tools to prepare her for the imminent deployment to
Somalia. She is one of the fourteen female participants in the current programme”.
Is she also lying?
From
the statement on the website of the Centre, they have, since 2009, trained
1,200 police officers for Somalia AND Sudan . Are they lying about this too?
What
we can discern from the police denial is that they do not want to alarm the
public about their ongoing role in Somalia; in view of the recent Al-Shabab
retaliatory attack in Kenya. However, we believe that it is better for the
police to be truthful about what they are doing in Somalia so that the public
will be on guard against any Al-Shabab attack in Ghana in future.
Civil War Breaks Out Within Al-Shabaab
Al shabab Fighters |
By
Muhyadin Ahmed Roble
For years the Islamist extremist group Al-Shabaab
was seen as the most cohesive, united and powerful force in the failed state of
Somalia. But it is now disintegrating like a house of cards because of internal
divisions and power struggles within its leadership, according to Abdiwahab
Sheikh Abdisamad, a history and political science professor at Kenya’s Kenyatta
University.
They [the militants] are transforming into
warring mini-groups, hunting each other due to their deteriorating ideological
differences, and of course [the group is] on the brink of civil war within
itself, Abdisamad told IPS in Nairobi.
Al-Shabaab claimed responsibility for September’s
four-day terror siege on Kenya’s Westgate Shopping Mall that resulted in the
death of more than 70 people, and for the Oct. 13 bombing in Ethiopia’s
capital, Addis Abba, which killed two Somali nationals who were believed to be
suspects.
But the militant group, which formally linked with
Al-Qaeda in 2012, has been in a leadership and strategy dispute that has divided
it into two factions a global jihadists and local nationalists.
Abdisamad sees the militants internal divisions
as a golden opportunity for the Somali government to bring less extremist and
nationalist-minded elements on board.
Initially, Al-Shabaab came together by default,
not by design, he said, adding that if the Somali government did not capitalise
on the rift and reach out to the nationalist faction, the global jihadists would
win and become stronger.
And then, the future of Somalia will be
uncertain, the stability of the region will be in question and no doubt the
stability of the whole world will be in question too, Abdisamad said.
He explained that the moment that turned the
group’s internal war into an open and public battle was when Al-Shabaab’s two
co-founders and top leaders, Ibrahim Haji and Moalim Burhan, were killed by
members of the group in June.
Jama, who was better known by his moniker Al-Afghani
due to his Al-Qaeda training in Afghanistan, had a five million dollar U.S.
bounty on his head.
But Al-Shabaab spokesman Sheikh Abdiaziz Abu
Musab denied a split within the group and had said that Jama and Burhan were
intentionally killed in a shoot-out when they rejected an arrest warrant from a
Sharia court.
Two foreign jihadists, the American-born Omar
Hammami known as Abu Mansoor Al-Amriki, who was on the FBI’s most wanted list
with a five million dollar reward for his capture, and Osama al-Britani, a
British citizen of Pakistani descent, were also killed by Al-Shabaab last
month.
Al-Amriki was perhaps the most well-known
Al-Shabaab propagandist because of his English jihadi rap videos. In 2012 he
was the first member of the group to reveal its split through a short online
video clip in which he said his life was in danger.
He was on the run and survived several
assassination attempts by the Amniyat unit, an intelligence division of
Al-Shabaab led by Ahmed Abdi Godane, who is also known as Sheikh Mukhtar Abu
Zubeyr, and is the group’s supreme leader. Al-Amriki was eventually killed in
September.
Abdisamad explained that Godane is a supporter of
global jihad who believes that Somalia belongs to all Muslims across the world.
Godane’s global jihadist faction has an agenda beyond Somalia and wants to
spread Islam from China to Chile, from Cape Town to Canada, Abdisamad said.
Another member of the group who was aligned to
the nationalist-minded faction to which Jama belonged, Sheikh Hassan Dahir Aweys,
escaped from Al-Shabaab’s largest remaining base in Barawe, which is located
some 180 km south of Mogadishu.
He surrendered to the Somali government following
the murder of Jama and Burhan. According to Abdisamad, Aweys and his faction
are considered to be less extremist as their intention is to establish an
Islamic state within Somalia borders and not bother neighbouring countries.
The religious nationalism faction is against
globalising the conflict in Somalia, indiscriminate assassinations and the
killing of clerics, scholars and everyone who seem to have not favoured the
militants. For years they campaigned to replace Godane, which they failed [to
do], Abdisamad said.
The group’s internal division is believed to have
contributed to their loss of strategic towns in southern and central Somalia,
including part of the capital, Mogadishu.
The Bakara market in the capital city was their
main source of funding as the group used to generate millions of dollars from
there through taxation and by extortions from telecommunication companies and
the business community at large. Al-Shabaab was ousted from Mogadishu in 2011
by Somali forces and African Union Mission in Somalia (AMISOM) troops.
Exactly a year later, the group lost its last
remaining and greatest revenue source the stronghold of Kismayo, a port city in
southern Somalia.
According to a United Nations report, Al-Shabaab
used to generate between 35 to 50 million dollars annually from the southern
seaports of Kismayo and Marko. Both ports are now under the control of Somali forces
and AMISOM troops.
Such a loss of economic sources and internal
divisions have led hundreds of Al-Shabaab fighters to defect to the government,
Somali journalist, Mohamed Abdi, told IPS. The group, he said, failed to keep
paying their fighters regularly as they used to do before the financial
constraints emerged.
Abdi said that the financial constraints and the
open rift within the group’s leadership have largely demolished the morale,
loyalty and capability of the group’s foot soldiers. It has lead to hundreds of
them deserting to the government or fleeing the organisation and going into
hiding in Somalia or in neighbouring countries.
But Abdisamad Moalim Mohamud, Somalia’s former
minister for the interior and national security and a current member of
parliament, told IPS that the group remains a threat not only to Somalia, but
also to regional and global security.
They have lost more of their foot soldiers and
can’t counter Somali and AMISOM forces directly any more. But they are more
capable of conducting effective guerrilla-style warfare such as suicide attacks
and storming places like Westgate Mall in Nairobi and the U.N. compound in
Mogadishu, Mohamud said by phone from Mogadishu.He said that regional
intelligence sharing and developing joint monitoring platforms and common
anti-terror strategies within regional governments could be used to prevent
such a threat. But he disagreed that their internal division had something to
do with nationalism.
Their rift has a lot to do with the leadership
change of Al-Qaeda than local politics and it is more about pursuing hegemony
over the command and control of the group, Mohamud said.
Bulletproof
cars that couldn’t protect a minister
Nigeria Minister of Aviation Stella Oduah |
By Levi Obijiofor
Never
in the history of this country have Nigerian citizens taken so much interest in
the activities of the Aviation Ministry and the Nigerian Civil Aviation
Authority (NCAA). The public is outraged that the stupendous amount of $1.6
million (approximately N255 million) was spent by the NCAA to acquire two
bulletproof cars for use by the Aviation Minister in a country with a high
level of poverty. How could the NCAA justify the incredible amount of money it
squandered in the purchase of the cars meant for the protection of a minister?
To
be clear, public anger is not necessarily about the need for the cars but about
the excessively large amount of money involved. No one is saying the minister
should not be protected. Every minister of government deserves protection. The
protection should not be for the ministers only but should also be extended to
their family members, in light of the culture of indiscriminate kidnapping
across the country. However, I am not persuaded that such an astounding sum of
money should be spent on bulletproof cars for the protection of the minister.
The
public has the right to be offended by the ostentatious expenditure by the
NCAA, an aviation regulator that has demonstrably failed many times to
undertake creditably the tasks assigned to it by legislation. This is the same
agency of government that has maintained a disgraceful safety record in the
industry. Given the diverse and serious problems that have plagued the NCAA over
the past decades, you would expect this prodigal aviation regulator to
understand that it could use half the money to acquire much needed equipment to
improve the safety of air travellers.
This
particular case should not be dismissed as an attempt by an aggrieved
whistleblower to settle scores. The scandal has added to the damage already
done to Nigeria’s name in the international community, as a country in which
corruption by government officials is rife and regrettably permitted. This is
perhaps why officials of anti-corruption agencies in overseas countries burst
in raucous laughter when they hear that Nigeria is waging a war against
corruption. They don’t believe us. They have valid reasons for their
scepticism. How do we expect to achieve socioeconomic development when the
flames of official and unofficial corruption have been lit and kept alight by
government officials?
This
case is particularly shocking because the revelations emerged soon after the
crash of an Associated Airline plane in Lagos, and two successive emergency
incidents involving an IRS Airline plane and a Kabo Air Boeing 747 aircraft.
Many people have wondered why, in light of frequent air accidents and safety
issues that have dogged the nation’s aviation industry, the NCAA and the Aviation
Ministry found it tolerable to commit such a large amount of money to buy two
cars for the minister’s security. Frequent air crashes have spawned so
much anger and raised troubling questions about the effectiveness of the NCAA
and the Aviation Ministry as overseers of the aviation industry, the
supervisors of air travellers’ safety and the administrators of airworthiness
of aircraft that fly in our airspace.
Against
this background, it was bizarre to hear NCAA boss Fola Akinkuotu say the other
day that his organisation was trying to detect the whistleblower who leaked to
the media the information about the purchase of the bulletproof cars. Akinkuotu
does not seem to appreciate the enormity of the financial irresponsibility
committed by his organisation and the intensity of public anger. As far as he
is concerned, it will be more rewarding to smoke out the person who exposed the
outrageous business deal than to provide reasonable and convincing explanation
why the NCAA spent an outrageous amount of money to enhance the Aviation
Minister’s security.
The
attempt by Akinkuotu to identify the whistleblower who exposed the
inappropriate expenditure by the NCAA shows how deep corruption has been etched
in the minds of senior government officials. Should the focus be on the source
of the revelations or should the NCAA aim to provide unambiguous and believable
reasons why it spent so much money on the two cars? Sound explanation, rather
than witch-hunting, is what the public wants from the NCAA and the Aviation Ministry.
Akinkuotu
said he was concerned that the person who leaked the information to the press
committed a crime because the information ought to remain hidden from public
knowledge. Again, this is an awful case of shadow-chasing. I have a piece of
advice for the embattled director-general of the NCAA. He should avoid public
statements that expose his inability to engage in informed arguments. He should
hire a very good public relations officer who will interact more effectively
with the media and explain to the public mind-boggling decisions taken by the
NCAA.
There
is no question that Akinkuotu the NCAA boss has handled this scandal badly. He
has not achieved his key objective which was to muzzle the press and therefore
gag public discussion of the scandal. The more the man speaks, the more he
muddles the facts and the more the public wants to know. Akinkuotu should
understand that no matter how much he values secrecy in the way the NCAA
operates, he has limited rights to secrecy in his capacity as a public
official. As a public officer, he has limited privacy too. His fondness for
secrecy in the management of the NCAA has now damaged rather than enhanced his
image.
Let
us be clear here. Inappropriate expenditure by senior government officers says
a lot about the existing poor culture of accountability and transparency in our
society. Senior public officers who engage in improper financial conduct or who
compromise their office should be disciplined.
There
are two distinct contradictions in the explanations provided by the Aviation
Minister’s special assistant on media and the justification provided by the
NCAA boss. While the Aviation Minister’s spokesperson admitted that “some
security vehicles were procured for the use of the office of the honourable minister
in response to the clear and imminent threat to her personal security and
life...”, the NCAA’s Akinkuotu said the bulletproof cars were not only for the
Aviation Minister but would also serve other official purposes, such as the
safe transportation of foreign VIPs who visit Nigeria.
This
scandal poses new challenges to President Goodluck Jonathan and his government.
How he handles this national disgrace that has so far shredded the image of the
NCAA and the Aviation Ministry will define for us how far Jonathan is prepared
to go to confront and discipline corrupt officials in his government. Will he
blink and take the attitude that it is nothing new, that other ministers have
also spent money for their personal security, welfare and wellbeing? Will Jonathan
order swift investigations into this matter to enable him to get a true and
complete idea of how $1.6 million was spent on two cars for use by one
minister?
In
the past, Jonathan had tended to ignore public outcries over clear evidence of
corruption by senior government officials. Now that a major scandal has
broken in the Aviation Ministry, everyone is watching to see how the president
and his handlers would put a spin on the dishonourable practice or dismiss it
as exaggerated reporting by journalists.
Jonathan
has the constitutional and moral duty to investigate this issue and to stop the
officials involved in the scandal. If he is unwilling to deal decisively with
the officials involved, he must discard forthwith all his claims to zero
tolerance for corruption. As I mentioned in a previous essay, a corrupt public
servant is an embarrassment to the nation and a threat to the ability of other
senior public officials to perform their tasks truthfully and objectively.
Corrupt
practices by senior public officers tend to rub off negatively on the image of
Nigeria, as well as the way the nation perceives public servants. Let us spit
this fact out before it goes sour in our mouths: There is something
objectionable about a country such as Nigeria in which senior public officers
who should serve their country altruistically appear regularly in corruption
scandals.
Different
people hold different views on what, if any, action should be taken against the
Aviation Minister and/or the NCAA boss. The most dominant view is that they
should resign. In true democracies in which public officers are accountable to
the people, the minister and the NCAA chief would have since stepped down to
pave way for official inquiry into the scandal. But these two officials won’t
resign because it is not the way we do things here. In our society, public
officers don’t resign when they are facing corruption allegations. They wait
till they are pushed out of their jobs in a dishonourable manner.
Many
questions have been asked about this scandal. And many answers are still
awaited. Who authorised payment for the acquisition of the bulletproof cars?
Should such a large sum of money have been spent to buy two cars for the
protection of a minister in a country in which millions of people are walloped
by hunger, malnutrition, disease, and illness? Did any official of government
receive illegal payments in the purchase of the cars? This is one case that
deserves to be scrutinised by Jonathan. Whether he would do so is another
matter.
Iran golden opportunity up for grabs
Iranian President Hassan Rohani |
By
Amir Dabiri Mehr
Hassan
Rouhani’s victory in the eleventh presidential election in June gave domestic
and international observers increasing hope that the two sides would reach
constructive agreements on the nuclear issue - agreements which would recognize
Iran’s lawful end and inalienable right to have nuclear energy technology and
would alleviate concerns regarding Tehran’s nuclear activities.
In
other words, this expectation was created that the new round of negotiations
between Iran and six world powers, unlike eight years ago, would transform from
“inconclusive ideological, philosophical discourse” in “an atmosphere of mutual
distrust” to “methodical, purposeful and timely diplomacy” in “an atmosphere of
mutual respect”.
In
such an atmosphere, which is a result of the majority of Iranians voting for
the new administration, Iranian diplomatic team sent a group of experts,
Iranian diplomats with transparent and logical positions to New York and Geneva
to announce the agenda of future talks to the other side - the agenda which
must be implemented in a “specific timeframe” and lead to results and “specific
achievements”.
Timeframe
is between six months to one year and the expected results are:
1.Sep-by-step
resolution of existing ambiguities and concerns about Iran’s nuclear activities
in line with international rules and regulations within the framework of the
International Atomic Energy Agency (IAEA)’s Safeguards, stripping the West of
any pretext and dismissing accusations of the past, which hamper the
possibility of mutual cooperation.
2.Recognizing
Iran’s peaceful nuclear activities particularly its right to enrich uranium as
well as legal measures to return Iran’s nuclear dossier from the United Nations
Security Council to the IAEA Board of Governors in the first stage, and in the
next stage, normalizing the outlook on Iran’s nuclear activities like other
countries possessing peaceful nuclear technology and exiting it from the IAEA
extraordinary meeting.
3.Halting
the oppressive and illegal trend of different sanctions against Iran and in the
next stage, lifting these sanctions within a specific timeframe and
compensating for the damage incurred as a result of sanctions.
4.Normalizing
the relations of Western countries with Iran in order to define different areas
of cooperation in different fields particularly the economic and energy
sectors
This form of cooperation has been defined based on the win-win model, given that Western hostilities towards Iran in the past years have been futile, the importance of economic and political situation in the Middle East and the importance of constructive and positive interaction with Iran, a relatively powerful consensus has been formed around Iran.
This form of cooperation has been defined based on the win-win model, given that Western hostilities towards Iran in the past years have been futile, the importance of economic and political situation in the Middle East and the importance of constructive and positive interaction with Iran, a relatively powerful consensus has been formed around Iran.
As
expected, following this month’s Geneva talks, there were destructive and
unrealistic reports in media affiliated to the anti-Iran front consisting of
Western-Zionist radicals. The main point of these reports is that “Western
countries should not allow the Islamic Republic to exit the economic siege and
sanctions imposed against the country without paying a heavy price such as the
complete halt of its nuclear activities and a lifting of sanctions should be a
complicated and time-consuming process which [should take] nearly ten or more
years [to be realized and should] appear impossible”. This hostile and arrogant
approach by the West, which in Iranian and revolutionary lingo is considered as
arrogant nature, maintains that “Iranians are willing to give the West more
concessions in order for the Western sanctions to not be increased”.
These
illogical statements become more considerable when media affiliated to the
arrogant Zionist front quotes anonymous sources and the officials of the six
world powers do not reject and confirm the existence of this dangerous scenario
with their meaningful silence. Therefore it is necessary to warn the Westerns
sides from a realistic position that if such a view exists among the countries
negotiating with Iran or the members of the Western negotiating team and is not
rejected by decision-makers in these countries, for a number of reasons they
will lose the golden opportunity to negotiate with Iran and reach a sustainable
and mutual agreement and secondly the irreparable harm resulting from such an
approach cannot be undone for at least a decade.
These
reasons are:
1.The
US and its allies in recent years by defying all regulations and exerting their
influence in certain international organizations have stopped at nothing in
their animosity against Iran including taking measures such as assassination,
sanctions and threats. Their ultimate goal has been regime change in Iran,
which they have failed to achieve given the mass participation of Iranians in
various elections. The principle of democracy in the Islamic Republic is the
biggest political resource of the country, which prevents any all-out
confrontation with Iran. Naturally, the continuation of this political-security
confrontation will yield no results and its effectiveness will dwindle by the
day and will draw closer to becoming neutralized because due to its past
experiences, the Islamic Republic has achieved high defense capabilities in
this regard. Therefore, as the proverb goes, a person in the hole stops digging
and Westerners who claim to be using rationality in politics should not repeat
their past mistakes.
2.Iran’s
outstanding achievements in defense industries is very visible for the US and
its allies and political pundits know that the cliché “all options are on the
table against Iran” is merely a superpower gesture by the US and because US and
its allies in the eight years of Iraqi imposed war (1980-1988) against Iran
supported former Iraqi dictator Saddam Hussein with all their might and at the
time Iran’s prowess was not comparable to present. Yet they could not achieve
victory over the country. In a number of West’s proxy wars against Iran in
Lebanon, Palestine and Syria, Western officials officially and publicly
acknowledged that they are incapable of confronting Iran and the Islamic
resistance inspired by the Islamic Republic. Therefore, the military option and
threats is a big political bluff and indicates no intention to pelt.
3.Despite
sanctions against Iran having created a number of problems in Iran but their
effectiveness is becoming void because of solutions such as resistance economy
and international relations. The continuation of sanctions will not meet the
envisioned outcomes of the West and will only cause more loss of credibility of
similar methods in international area.
4.For
different reasons, particularly historical ones, powerful forces in Iran both
in society and government are against any form of agreement, negotiations and
compromise with the West and the Westerners. Without paying attention to the
interests and damage inflicted by such possible agreements, they consider the
essence of interaction with the West as unfavorable and resist against it. If
today, Westerners see that these forces in society and government have only
contented themselves with taking positions in the media due to the conditional
and implied support of the highest political and religious authority in Iran -
Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei who is the
uniting factor of the Iranian nation and government. If for any reason, the
Westerners fail to use this special opportunity to gain the trust of Iran,
these accumulated forces opposing the policies of the Western governments will
prevent any possible agreement with Iran in future.
5.There
are reports that despite Iran and the world powers being engaged in the talks,
these countries are independently trying to enter the lucrative investment
projects in Iran in the new atmosphere brought about by the election and are
competing with one another. Proof of this issue is oil giants trying to return
to Iran’s oil and gas sectors and the British wanting to exchange charge
d’affaires with Iran. Therefore, any defeat in negotiations will show the
incompetence of Western governments in agreeing with one another to achieve a
cooperation model with a regional power.
6.Ultimately,
Westerners, particularly the US, must know that the experience of past years
particularly after the fall of Saddam regime in Iraq and the Taliban in
Afghanistan which was only accomplished due to Iran cooperation and green light
shows that no political, economic and cultural project can be implemented in
the most important geostrategic and geo- economic region of the world, i.e.
Middle East, without Iran’s cooperation and without taking into consideration
the interests and security of Iran. The Islamic Republic has used the factors
of soft and hard war and popular support to reach such a position. Therefore,
if Western countries are incapable for any reasons to achieve an agreement and
entente model based on mutual respect, recognizing Iran’s inalienable rights
and ending hostile policies such as economic sanctions, the game will end
win-lose instead of win-win in favor of Iran.
In
conclusion, the Western parties particularly US and Britain must be advised to
take their own interests in mind and use the unique opportunity in the new
atmosphere with Iran and not allow pointless past animosities against Iran to
continue as the Zionist circles are overtly and covertly dictating options on
them.
US President Hussein Obama |
As ye sow, so shall ye reap
By Paul
Craig Roberts
The
year 2014 could be shaping up as the year that the chickens come home to roost.
Americans,
even well-informed ones, don’t know all of the mistakes made by neoconized and
corrupted Washington in the past two decades. However, enough is known to see
that the US has lost economic and political power, and that the loss is
irreversible.
The
economic cost of this lost will be born by what remains of the middle class and
the increasingly poverty-stricken lower class. The one percent will have
offshore gold holdings and large sums of money in foreign currencies and other
foreign assets to see them through.
In
the political arena, the collapse of the Soviet Union presented Washington with
the grand opportunity to reallocate the Pentagon budget to other uses. Part of
the reduction could have been returned to taxpayers for their own use. Another
part could have been used to improve worn out infrastructure. And another part
could have been used to repair and improve the social safety net, thus insuring
domestic tranquility. A final, but perhaps most important part, could have been
used to begin repaying the Treasury IOUs in the Social Security Trust Fund from
which Washington has borrowed and spent $2 trillion, leaving non-marketable
IOUs in the place of the Social Security payroll tax revenues that Washington
raided in order to fund its wars and current operations.
Instead,
influenced by neoconservative warmongers who advocated America using its “sole
superpower” status to establish hegemony over the world, Washington let hubris
and arrogance run away with it. The consequence was that Washington destroyed
its soft power with lies and war crimes, only to find that its military power
was insufficient to support its occupation of Iraq, its conquest of
Afghanistan, and its financial imperialism.
Now
seen universally as a lawless warmonger and a nuisance, Washington’s soft power
has been squandered. With its influence on the wane, Washington has become more
of a bully. In response, the rest of the world is isolating Washington.
The
prime minister of India, Manmohan Singh, recently declared China and Russia to
be India’s “most important partners” with whom India shares “common strategic
interests.” Prime Minister Singh said: “ India and Russia have always had a
convergence of views on global and regional issues, and we value Russia’s
perspective on international developments of mutual interest.”
India
joined China in expressing concerns about the Federal Reserve’s practice of
printing money in order to cover Washington’s vast red ink. The BRICS (Brazil,
Russia, India, China, South Africa) are taking steps to create their own method
of settling trade accounts in order to protect themselves from the looming
dollar implosion, China has forcefully called for a “de-Americanized
world.” After watching the “superpower” offshore a large part of its GDP to
China and then add to the diminished tax base the burden of $6 trillion in wars
that brought no booty and served no US interest, China has concluded that
American power is spent. The London Telegraph thinks “it is only a matter of
time before the renminbi replaces the dollar as the primary currency for
trading commodities and resources.”
The
Obama regime attempted to attack Syria based on the sort of lies that the Bush
regime used to invade Iraq, only to be slapped down by the British Parliament
and Russian government. This rebuke was followed by the childishness of the
government shutdown and threat of default. Consequently, the Washington morons
have lost their monopoly on economic and political leadership. A few days ago
the British government announced a historic agreement that permits British
investors direct access to China’s markets and allows Chinese banks to expand
their operations in Great Britain.
In
Australia, the US dollar will no longer be used as the currency in which to
settle the Australian trade accounts with China. Instead of dollars, trade will
be settled in the Chinese currency.
Washington
served as cheerleader, as did most economists and libertarians, while US
corporations, greedy for short-term profits and executive bonuses, offshored US
industry and manufacturing, calling it free trade. The obvious and predicted
result is that China’s demand for resources needed to fuel its industrial and
manufacturing power now dominates markets. This means that the US dollar is
being displaced as world currency. The only market that America dominates is
the market for financial fraud.
When
industrial, manufacturing, and tradeable professional service jobs are
offshored, they take US GDP and tax base with them. The foreign country gets
the benefit of the relocated economic activity. Due to the revenues lost from
jobs offshoring, there is a large gap between federal revenues and federal
expenditures. As Washington’s irresponsible behavior has raised so many doubts
about the dollar’s value and the government’s commitment to stand behind its
massive debt, foreign countries with trade surpluses with the US are less and
less willing to recycle those surpluses into the purchase of US Treasury
debt.
Today
the two largest holders of US Treasury debt are not investors or even foreign
central banks. The two largest holders are the Federal Reserve and the Social
Security Trust Fund.
As
for those $6 trillion wars, that’s to pay for national defense to protect us
from women, children, and village elders in far away countries devoid of air
forces and navies, and to provide those recycled taxpayer monies from the
military/security complex that find their way into political
contributions.
The
Wall Street gangsters sighed for relief over the last minute debt ceiling
agreement. This shows how short-term Wall Street’s outlook is. All the October
agreement did was to push off the crisis to January and February. The “debt
ceiling agreement” did not produce a new debt ceiling that would last beyond
February, and it did not resolve the large difference between federal revenues
and expenditures. In other words, the can was again kicked down the road. A
repeat of the October fiasco won’t play well.
Obamacare
is causing the premiums on private insurance polices to rise substantially,
almost doubling in some situations unless people move to the uncertain
exchanges, and Obamacare’s raid on Medicare payroll tax revenues has resulted
in a cut in Medicare payments to health care providers. The result is a further
reduction in consumer discretionary income and a further drop in the
economy.
This
in turn means a larger federal budget deficit and the need for the Federal
Reserve to purchase more debt.
Another
reason the Federal Reserve is faced with increasing, not tapering, quantitative
easing (money printing) is the decline in foreign purchases of US Treasury
bills, notes, and bonds. As the instruments pay interest that is less than the
rate of inflation, holding Treasury debt makes no sense when the dollar’s value
and the potential of default are open questions.
According
to reports, not only are foreign governments, such as China, ceasing to buy US
Treasury debt, China has started to sell off its holdings, substituting gold in
the place of US Treasury debt.
This
means that the bonds must be purchased by the Fed or interest rates will rise
as the increased supply of bonds on the market drives down bond prices. The
only way the Fed can purchase a larger supply of bonds is by printing more
money, that is, by more quantitative easing.
With
the world moving away from using the dollar to settle international accounts,
as the Fed prints more dollars the rate at which foreign holders of dollar
assets sell off their holdings will rise.
To
get out of dollars requires that the dollar proceeds from selling Treasuries,
US stocks and US real estate be sold in the currency markets. The selling of
dollars drives down the exchange value of the US dollar and results in rising
US inflation. The Fed can print money with which to purchase Treasury debt, but
it cannot print foreign currencies with which to purchase dollars.
The
decline in the dollar’s exchange value and the domestic inflation that results
will force the Fed to stop printing. What then covers the gap between revenues
and expenditures? The likely answer is private pensions and any other asset
that Washington can get its hands on.
Initially,
private pensions will be taxed at a rate to recover the tax-free accumulation
in the pensions. The second year a national emergency will be used to
confiscate some share of pensions. Those relying on the pensions will find
themselves with less income. Consumer spending will decline. The economy will
worsen. The deficit will widen.
You
can see where this is going, and there seems to be no way out. Policymakers,
economists, and corporation executives are in denial about the adverse effects
of offshoring, which they still, despite all the evidence, maintain is good for
the economy. So nothing will be done about offshoring. Republicans will blame
the budget deficit on welfare and entitlements, and if those are cut consumer
spending will decline further, widening the budget deficit. Inflation will rise
as incomes fall, and social cohesion will break down.
Now
you know why Homeland Security purchased 1.6 billion rounds of ammunition,
enough ammunition to fight the Iraq war for 12 years, has its own para-military
force and 2,700 tanks. If you think the “terrorist threat” in America warrants
a domestic armed force of this size, you are out of your mind. This force has
been assembled to deal with starving and homeless people in the streets of
America.
September
employment report: According to the Bureau of Labor Statistics (BLS), September
brought 148,000 new jobs, enough to keep up with population growth but not
reduce the unemployment rate. Moreover, John Williams (shadowstats.com) says
that one-third of these jobs, or 50,000 per month on average, are phantom jobs
produced by the birth-death model that during difficult economic times
overestimates the number of new jobs from business startups and underestimates
job losses from business failures.
The
BLS reports that 22,000 of September’s jobs were new hires by state
governments, which seems odd in view of the ongoing state budgetary
difficulties.
In
the private sector, wholesale and retail trade produced 36,900 new jobs, which
seems odd in light of the absence of growth in real median family income and
real retail sales.
Transportation
and warehousing produced 23,400 new jobs, concentrated in transit and ground
passenger transportation. This also seems odd unless the price of gasoline and
pinched budgets are forcing people onto public transportation.
Professional
and business services accounted for 32,000 jobs of which 63% are temporary help
jobs.
So
here you have the job picture that the presstitutes, hyping “the jobs gain,”
don’t tell you. The scary part of the September job report is that the usual
standby, the category of waitresses and bartenders, which has accounted for a
large part of every reported jobs gain since I began reporting the monthly
statistics, shows job loss. Seven thousand one hundred waitresses and
bartenders lost their jobs in September. If this figure is not a fluke, it is
bad news. It signals that fewer Americans can afford to eat and drink
out.
The
unemployment rate that is reported is the rate that does not count as
unemployed discouraged workers who are unable to find jobs and cease to look.
This favored rate, the darling of the regime in power, the presstitutes, and
Wall Street, also is not adjusted for the category of “involuntary part-time
workers,” those whose hours have been cut back or because they are unable to
find a full-time job. Obamacare, as is widely reported, is causing employers to
shift their work forces from full time to part time in order to avoid costs
associated with Obamacare. The BLS places the number of involuntary part-time
workers at 7,900,000.
The
announced 7.2% unemployment rate is a meaningless number. The rate can decline
for no other reason than people unable to find jobs drop out of the work force.
You are not counted in the work force if you are discouraged about finding a
job and no longer look for a job.
The
phenomena of discouraged workers shows up in the measure of the labor force
participation rate, which has declined in the 21st century. The opportunities
for American labor are so restricted that a rising percentage of the working
age population have given up looking for jobs.
Yet,
the Obama regime, the Wall Street gangsters, and the pressitute media tell us
how much better the economic situation is becoming as more small businesses
close, as memberships decline in golf clubs, as more university graduates
return home to live with their parents, who are drawing down their savings to
live, as Fed Chairman Bernanke has made it impossible for them to live on
interest payments on their savings.
According to the US census bureau, real median household income in 2012 was $51,017, down 9% from $56,080 in 1999, 13 years ago. In contrast, annual compensation in 2012 for US CEOs broke all records. Two CEOs were paid more than $1 billion, and the worst paid among the top ten took home $100 million. When the presstitutes speak of economic recovery, they mean recovery for the one percent.
According to the US census bureau, real median household income in 2012 was $51,017, down 9% from $56,080 in 1999, 13 years ago. In contrast, annual compensation in 2012 for US CEOs broke all records. Two CEOs were paid more than $1 billion, and the worst paid among the top ten took home $100 million. When the presstitutes speak of economic recovery, they mean recovery for the one percent.
America
is in the toilet, and the rest of the world knows it. But the neocons who rule
in Washington and their Israeli ally are determined that Washington start yet
more wars to create lebensraum for Israel.
Early
in the 21st century the liberal Democrat Senator from New York, Chuck Schumer,
and I coauthored an article in the New York Times about the adverse effects on
the US economy of jobs offshoring. The article caused a sensation. The
Brookings Institution in Washington quickly convened a conference which was
covered by C-SPAN. C-SPAN rebroadcast the conference several times. During the
conference I said that if jobs offshoring continued, the US would be a third
world economy in 20 years.
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