7/29/7 'Expand or Die 'Law Rules: "Axial Eurasia" & Global War for Control of "The Shifting Capital of Capital"

"Democracy is inimical to imperial mobilization."
Z. Brzezinski.The Grand Chessboard, 1997

July 26, 1947, U.S. imperialist wars for global capital domination officially became 'national defense'
President Truman signed the National Security Act, creating the Department of Defense, the National Security Council, the Central Intelligence Agency and the Joint Chiefs of Staff. http://www.nytimes.com/learning/general/onthisday/20070726.html

U.S. WEALTH & POWER INCREASED SINCE '48 ...
"We have about 60 per cent of the world's wealth but only 6.3 per
cent of its population. In this situation we cannot fail to be the object of
envy and resentment. Our real task in the coming period is to devise a
pattern of relationships which will permit us to maintain this position of
disparity. We need not deceive ourselves that we can afford today the luxury
of altruism and world benefaction. We should cease to talk about such vague
and unreal objectives as human rights, the raising of living standards and
democratisation. The day is not far off when we are going to have to deal in
straight power concepts. The less we are then hampered by idealistic
slogans, the better."
George Kennan, ex-US State Department Policy Planning Staff Chief, Document PPS23, 24 February 1948

THE U.S. 'WAR ON TERROR', IS A GLOBAL IMPERIALIST WAR: LIKE ALL IMPERIALIST WARS, GOAL IS SECURING U.S. CAPITAL'S GLOBAL DICTATORSHIP
Digest commentary:
The U.S. strategy for global hegemony is neither new in American history nor unique to the Bushcon administration.
A brief survey of its history demonstrates the bipartisan nature of U.S. capitalism's white supremacist "manifest destiny".
It is a function of capital's basic law... "expand or die", not partisan politics. Electoral politics are a means to this end serving as a PR marketing tool for a reactionary political trap.

Electoral politicians are the state's handmaidens whose job is to sell us and secure our patriotic allegiance to the political-economic system its policies are designed to advance. The needs of 95% of humanity and our movement must be diametrically opposed to those of our class enemy. A vote for U.S. imperialism is support for its predatory nature and crimes against humanity. It is suicidal for those claiming commitment to justice and peace.

Internationalist anti-imperialist struggle is the only way to stop the fascist U.S. juggernaut. A critical step toward this is a decisive break with capitalist politics exposing and opposing how they function to serve the state and keep the 'left' looking for solutions from the system driven to war to survive.

Capital as Karl Marx analyzed in Das Kapital is a human relation. It is inherently non-partisan. U.S. capital's strategic analyses, brewed in think-tanks, NGOs, corporate foundations and universities, are strategies for U.S. global rule ... electoral politicians and policies are the functionaries, the executioners. Working and oppressed peoples worldwide from whose labor power capital is extracted are capital's base ... and enemies once they understand and resist the rules of the game... "terrorists" obstructing the U.S global war of terror.

This present imperialist juggernaut is based largely on the strategic analyses and recommendations of Zbigniew Brzezinski, National Security Advisor to President Jimmy Carter (1977-81), for example:

1997: THE GRAND CHESSBOARD: American Primacy & its Geostrategic Imperatives
publisher: Basic Books / 1998-10 / Paperback / 240 Pages/ isbn-10: 0465027261 / isbn-13: 9780465027262 / Edition: Reissue
"...The last decade of the twentieth century has witnessed a tectonic shift in world affairs. For the first time ever, a non-Eurasian power has emerged not only as a key arbiter of Eurasian power relations but also as the world's paramount power. The defeat and collapse of the Soviet Union was the final step in the rapid ascendance of a Western Hemisphere power, the United States, as the sole and, indeed, the first truly global power... (p. xiii)
"... But in the meantime, it is imperative that no Eurasian challenger emerges, capable of dominating Eurasia and thus of also challenging America. The formulation of a comprehensive and integrated Eurasian geostrategy is therefore the purpose of this book. (p. xiv)

"For America, the chief geopolitical prize is Eurasia... Now a non-Eurasian power is preeminent in Eurasia - and America's global primacy is directly dependent on how long and how effectively its preponderance on the Eurasian continent is sustained. (p.30)
"In that context, how America 'manages' Eurasia is critical. Eurasia is the globe's largest continent and is geopolitically axial. A power that dominates Eurasia would control two of the world's three most advanced and economically productive regions. A mere glance at the map also suggests that control over Eurasia would almost automatically entail Africa's subordination, rendering the Western Hemisphere and Oceania geopolitically peripheral to the world's central continent. About 75 per cent of the world's people live in Eurasia, and most of the world's physical wealth is there as well, both in its enterprises and underneath its soil. Eurasia accounts for 60 per cent of the world's GNP and about three-fourths of the world's known energy resources." (p.31)

"Two basic steps are thus required: first, to identify the geostrategically dynamic Eurasian states that have the power to cause a potentially important shift in the international distribution of power and to decipher the central external goals of their respective political elites and the likely consequences of their seeking to attain them;... second, to formulate specific U.S. policies to offset, co-opt, and/or control the above..." (p. 40)
"...To put it in a terminology that harkens back to the more brutal age of ancient empires, the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together." (p.40)
"Henceforth, the United States may have to determine how to cope with regional coalitions that seek to push America out of Eurasia, thereby threatening America's status as a global power." (p.55)

"... [the Central Asian Republics] are of importance from the standpoint of security and historical ambitions to at least three of their most immediate and more powerful neighbors, namely Russia, Turkey and Iran, with China also signaling an increasing political interest in the region. But the Eurasian Balkans are infinitely more important as a potential economic prize: an enormous concentration of natural gas and oil reserves is located in the region, in addition to important minerals, including gold." (p.124) [Emphasis added]
"The world's energy consumption is bound to vastly increase over the next two or three decades. Estimates by the U.S. Department of energy anticipate that world demand will rise by more than 50 percent between 1993 and 2015, with the most significant increase in consumption occurring in the Far East. The momentum of Asia's economic development is already generating massive pressures for the exploration and exploitation of new sources of energy and the Central Asian region and the Caspian Sea basin are known to contain reserves of natural gas and oil that dwarf those of Kuwait, the Gulf of Mexico, or the North Sea." (p.125)
"Uzbekistan is, in fact, the prime candidate for regional leadership in Central Asia." (p.130)

"... an Islamic revival - already abetted from the outside not only by Iran but also by Saudi Arabia - is likely to become the mobilizing impulse for the increasingly pervasive new nationalisms, determined to oppose any reintegration under Russian - and hence infidel - control." (p. 133).

"For Pakistan, the primary interest is to gain Geostrategic depth through political influence in Afghanistan - and to deny to Iran the exercise of such influence in Afghanistan and Tajikistan - and to benefit eventually from any pipeline construction linking Central Asia with the Arabian Sea." (p.139)

"It follows that America's primary interest is to help ensure that no single power comes to control this geopolitical space and that the global community has unhindered financial and economic access to it." (p148)
"Without sustained and directed American involvement, before long the forces of global disorder could come to dominate the world scene. And the possibility of such a fragmentation is inherent in the geopolitical tensions not only of today's Eurasia but of the world more generally." (p.194)
"America is now the only global superpower, and Eurasia is the globe's central arena. Hence, what happens to the distribution of power on the Eurasian continent will be of decisive importance to America's global primacy and to America's historical legacy." (p.194"With warning signs on the horizon across Europe and Asia, any successful American policy must focus on Eurasia as a whole and be guided by a Geostrategic design." (p.197)
"That puts a premium on maneuver and manipulation in order to prevent the emergence of a hostile coalition that could eventually seek to challenge America's primacy..." (p. 198)
"The most immediate task is to make certain that no state or combination of states gains the capacity to expel the United States from Eurasia or even to diminish significantly its decisive arbitration role." (p. 198)

"The attitude of the American public toward the external projection of American power has been... ambivalent. The public supported America's engagement in World War II largely because of the shock effect of the Japanese attack on Pearl Harbor."
It is also a fact that America is too democratic at home to be autocratic abroad. This limits the use of America's power, especially its capacity for military intimidation. Never before has a populist democracy attained international supremacy. But the pursuit of power is not a goal that commands popular passion, except in conditions of a sudden threat or challenge to the public's sense of domestic well-being. The economic self-denial (that is, defense spending) and the human sacrifice (casualties, even among professional soldiers) required in the effort are uncongenial to democratic instincts. Democracy is inimical to imperial mobilization."

"In the long run, global politics are bound to become increasingly uncongenial to the concentration of hegemonic power in the hands of a single state. Hence, America is not only the first, as well as the only, truly global superpower, but it is also likely to be the very last."

"As America becomes an increasingly multicultural society, it may find it more difficult to fashion a consensus on foreign policy issues, except in the circumstances of a truly massive and widely perceived direct external threat."
Brzezinski, The Grand Chessboard

[excerpt] 1997: A Geostrategy for Eurasia
Zbigniew Brzezinski
From Foreign Affairs, September/ October 1997
http://www.foreignaffairs.org/19970901faessay3795/zbigniew-brzezinski/a-...
Zbigniew Brzezinski, Assistant to the President for National Security Affairs in 1977-81, is Counselor at the Center for Strategic and International Studies and Professor of Foreign Policy at the Paul H. Nitze School of Advanced International Studies at The Johns Hopkins University. This article is adapted from his forthcoming book, The Grand Chessboard.

AXIAL EURASIA
Seventy-five years ago, when the first issue of Foreign Affairs saw the light of day, the United States was a self-isolated Western hemispheric power, sporadically involved in the affairs of Europe and Asia. World War II and the ensuing Cold War compelled the United States to develop a sustained commitment to Western Europe and the Far East. America's emergence as the sole global superpower now makes an integrated and comprehensive strategy for Eurasia imperative.
Eurasia is home to most of the world's politically assertive and dynamic states. All the historical pretenders to global power originated in Eurasia. The world's most populous aspirants to regional hegemony, China and India, are in Eurasia, as are all the potential political or economic challengers to American primacy. After the United States, the next six largest economies and military spenders are there, as are all but one of the world's overt nuclear powers, and all but one of the covert ones. Eurasia accounts for 75 percent of the world's population, 60 percent of its GNP, and 75 percent of its energy resources. Collectively, Eurasia's potential power overshadows even America's.

Eurasia is the world's axial supercontinent. A power that dominated Eurasia would exercise decisive influence over two of the world's three most economically productive regions, Western Europe and East Asia. A glance at the map also suggests that a country dominant in Eurasia would almost automatically control the Middle East and Africa. With Eurasia now serving as the decisive geopolitical chessboard, it no longer suffices to fashion one policy for Europe and another for Asia. What happens with the distribution of power on the Eurasian landmass will be of decisive importance to America's global primacy and historical legacy.

A sustainable strategy for Eurasia must distinguish among the more immediate short-run perspective of the next five years or so, the medium term of 20 or so years, and the long run beyond that. Moreover, these phases must be viewed not as watertight compartments but as part of a continuum. In the short run, the United States should consolidate and perpetuate the prevailing geopolitical pluralism on the map of Eurasia. This strategy will put a premium on political maneuvering and diplomatic manipulation, preventing the emergence of a hostile coalition that could challenge America's primacy, not to mention the remote possibility of any one state seeking to do so. By the medium term, the foregoing should lead to the emergence of strategically compatible partners which, prompted by American leadership, might shape a more cooperative trans-Eurasian security system. In the long run, the foregoing could become the global core of genuinely shared political responsibility.
In the western periphery of Eurasia, the key players will continue to be France and Germany, and America's central goal should be to continue to expand the democratic European bridgehead. In the Far East, China is likely to be increasingly pivotal, and the United States will not have a Eurasian strategy unless a Sino-American political consensus is nurtured. [...]

'WAR ON TERROR' REVISITED
The conquest of Southwest Asia
By Pepe Escobar
http://www.atimes.com/atimes/Middle_East/GJ07Ak01.html
For Washington, the real enemy is not Islamic fundamentalism: it's Arab nationalism. For decades the ultimate target of Israeli foreign policy has been to sow disunion among Arabs. Secular Arab nationalism is the ultimate threat to Israel, thus to the US, in neo-con thinking. The crux is not religious: it's political...

U.S. PROXY & STATE TERRORIST PARTNER SHARE FASCIST AGENDAS
1996 A Clean Break: A New Strategy for Securing the Realm
http://www.israeleconomy.org/strat1.htm
Following is the policy blueprint prepared for the incoming B. Netanyahu Israeli government by The U.S. Institute for Advanced Strategic and Political Studies’ "Study Group on a New Israeli Strategy Toward 2000."

Iraq, the new Israel
by Pepe Escobar
http://www.atimes.com/atimes/Middle_East/IG06Ak03.html
US President George W Bush, last week in a speech at the US Naval War College, made it official: Israel is the model for Iraq, although Iraq is rather more like Palestine.... Israel is viewed all across the Middle East as a Western-configured colonial power, illegally gobbling up Palestinian land and treating its own Arab residents as third-rate citizens. Bush's Israeli Iraq - rather Americastan in Iraq, as it is known in many quarters in Baghdad - amounts to nothing less than a public relations nightmare in terms of the US "message" for the wider Middle East.
The endless Palestinian tragedy - the cancer at the root of every problem in the Middle East - now has officially spread to Mesopotamia. The disease is man-made.... the Zio-con objective is to encourage civil war in Iraq on a divide-and-rule basis...
Iraq's Palestinians are the minority Sunni Arabs - moderates included, and certainly, at least in the thinking of Bush and his vice president, Dick Cheney, Shi'ite followers of Muqtada al-Sadr. That leaves little else than the Kurds as "Israelis"; mountainous Iraqi Kurdistan, anyway, has been infested with Israeli intelligence services for years....
Meanwhile real life - or survival in the heart of darkness - remains bleak. Most areas in Baghdad are "red" or "dark pink" - meaning the odds of one seeing the sun rising day after day range from 10% to a maximum of 30%. The National Association of British Arabs, in a report by Dr Ismail Jalili to the House of Lords Commission on Iraq, has detailed only part of the horrendous, systematic decimation of Iraq's intelligentsia: 830 documented assassinations since 2003, including 380 academics and doctors, 210 lawyers and judges, and 243 journalists.
Washington's Holy Grail - or Benchmark Supreme - remains the Oil Law... handing over the nation's wealth to Anglo-American Big Oil...
Disregarding the occasional shriek by Prime Minister Nuri al-Maliki as ambient noise, the US military continues to invade Sadr City practically on a daily, pre-dawn basis in search of Iranian "terrorists", bombing houses and killing poor Shi'ite Iraqi civilians instead. This is the face of Bush's "surge" that doesn't feature in the Western press - but it does on Arab satellite channels.... They've now been told - by the Mission Accomplisher-in-Chief - their country is the new Israel....

religion an indispensable partner in fascist state:
US and Israel must enjoy second coming:
That evangelical support for Israel is largely based on "End Times" theology is largely irrelevant to the Israeli politicians who share the goal of expanding settlements into the West Bank and a military strike on Iran, but it is anything but irrelevant to the rank-and-file members and former House Majority Leader Tom Delay
http://tinyurl.com/27vjkb

US-ISRAEL GIVES AGENT ABBAS MAJOR WEAPON SUPPLY & MORE TO COME
http://www.uruknet.de/?s1=1&p=34836&s2=27
NAZARETH, (PIC)-- Israel has sanctioned the transfer of thousands of machineguns and other military equipment from Jordan to PA chief Mahmoud Abbas's forces in the West Bank, according to Hebrew press... Daily Ha'aretz quoted a responsible PA security official as saying that the procedure had already taken place under complete secrecy. The paper noted that similar shipments to the Gaza Strip earlier this year had fallen in the hands of Hamas fighters after they took control of the Strip almost two months ago. The source said that a big shipment had entered the West Bank from Jordan in mid July according to prior agreement between Israel, Jordan and the PA presidency.The same paper pointed out that the Hebrew state and the PA on Wednesday resumed full civilian coordination after re-operation of the liaison offices which also followed resumption of security coordination between the two sides. Israeli premier Ehud Olmert is currently studying Abbas's request to allow entry of armored vehicles, bullet-proof vests and other military equipment in addition to the Badr forces stationed in Jordan to boost his power against Hamas.

WHAT IT IS ALL ABOUT: U.S. CONTROL OF GLOBALLY INTEGRATED FINANCE CAPITAL
Globalisation: a society of aliens?
A Reflection on Our Times
AIJAZ AHMAD, 2000
Frontline, http://www.hinduonnet.com/fline/fl1720/17200490.htm

Former U.S. National Security Adviser Zbigniew Brzezinski, who formulated the geopolitical strategy of the U.S., describes globalisation as a three-tiered hierarchy with a single superpower at the top, is consistent with President Teddy Roosevelt's statement at the beginning of the century that the U.S has no choice but to take up the task of an "international police power."

...Globally integrated finance is the central agent for the unification of this [American] Empire... As a fully-fledged imperialism, globalisation is an integrated system of economic, political, military and ideological powers and geopolitical arrangements supervised by real people in real boardrooms. The geopolitical aspect, for example, comes through very well in a recent formulation of Zbigniew Brzezinski, who served as the National Security Advisor in the Carter administration, supervised the beginning of the Afghan war and credits himself for having bought down the Soviet system. He begins by observing that "for the first time ever, a non-European power has emerged not only as the key arbiter of Eurasian power relations but also as the world's paramount power."... Brzezinski recommends: "The three great imperatives of geopolitical strategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant, and to keep the barbarians from coming together." [Z. Brzezinski, The Grand Chessboard, New York, Basic Books, 1997]

The "barbarians" are of course the people of the Third World, but two other aspects of this formulation are worth emphasising. One is that far from representing it as the outbreak of equality, liberty and opportunity that many soft sellers of globalisati on would portray it as being, Brzezinski is a tough-minded professional, with aristocratic disdain for the weak, and describes globalisation as a three-tiered hierarchy, with barbarians at the bottom and a single superpower at the top, but one in which E urope and Japan, although dominant inside what he calls "Eurasia," are merely straggling in the middle.
Since it is in the nature of "vassals and tributaries" to connive and conspire against the feudal lord, the European Union and Japan must be prevented from colluding against the U.S. which can keep them "pliant" by keeping them dependent upon itself for their military security - as, for example, by ensuring access to petroleum from the Gulf region which the U.S. had done for decades now. Germany is of course the leading power in Europe, so in order to keep Germany "pliant" the U.S. may even help it achi eve its aims in Yugoslavia.
This pretty much sums up the geopolitical thinking that President Clinton has inherited and is now exercising through his Secretary of State, Madeleine Albright, whom Brzezinski had once tutored. This geopolitical vision at the end of the 20th century is consistent with President Teddy Roosevelt's statement at the beginning of this century that the U.S. has no choice but to take up the task of an "international police power."...

... the [American] empire covers the entire globe, thanks to the dissolution of the Soviet bloc and the full integration of China into the world market, so that there are no significant spaces left which are outside the direct domination of capital. This extensive expansion of the market is combined with an intensive deepening, so that the partial industrialization of the former colonies, the assimilation of most agriculture around the world into money economy, and the rapid world-wide decline of non-monetised peasant production mean that almost the whole world has been brought effectively under the same law of value. This law is of course administered differentially around the world as wages and prices are set locally and nationally.
Washington D.C. serves as the capital city of this empire because it is, together with New York, the headquarter not only of the U.S. government, but also of most key institutions of this new imperial sovereignty: Wall Street, the International Monetary Fund, the World Bank, the World Trade Organisation, the United Nations, and so on. The financial integration of this world takes the form not of an imperfect integration of autonomous and interlocking national markets, but that of a single organism functioning through a technology that has brought effectively to zero the time required to transmit from one end of the world to another the information incorporating key financial decisions of the world.
This edifice is upheld in a complex system of law and regulation which has two overlapping aspects. There are first of all the regulatory regimes of the IMF, the World Bank, the International Financial Institutions (IFIs), and so on, which are, tog ether, fast emerging as a new world government for imposing uniform policies, obligations, and conditionalities around the world, especially the imperialised world. [...]

Brzezinski's analysis still required part of '06-'07 war training
THE UNITED STATES NAVAL WAR COLLEGE NATIONAL SECURITY ...
Brzezinski, Zbigniew. “A Geostrategy for Eurasia,” Chapter 7 in The Grand. Chessboard: American Primacy and its Geostrategic Imperatives. ...
www.nwc.navy.mil/academics/courses/ nsdm/documents/NSDMSyllabusWinter06-07Web.pdf -

The NYT obscures reality of U.S. finance capital's crisis:
The Shifting Capital of Capital
From Council on Foreign Relations
http://www.nytimes.com/cfr/world/slot1_20070712.html
...a broad reshuffling is currently unfolding among many of the world’s financial centers. A number of newcomer cities now seek traction in the competitive global financial markets—traditionally dominated by New York City and London—both to draw capital and to consolidate political power.
Writing in the Wall Street Journal, Sen. Charles Schumer (D-NY) and New York City Mayor Michael Bloomberg argue that several regulatory hurdles are driving the shift away from U.S. financial markets.... Experts say these shifts may substantially sway global economic and geopolitical power dynamics... the McKinsey report concludes that New York might lose its premier position in the world of global finance within the next ten years if major administrative changes are not implemented....
The same can be said for U.S. financial services as a whole. Based on 2005 data, the United States still generates more revenue from financial services than any other country—$51 trillion, as compared to $38 trillion for all of Europe ($30 trillion from the Eurozone and $8 trillion from the United Kingdom), $20 trillion for Japan, and $13 trillion for East Asia (not including Japan)—but the McKinsey report notes that growth in U.S. financial services is slower than in Europe, Japan, and Asia. In terms of drawing capital to U.S. financial markets, in 2005 only one of the world’s twenty-four largest initial public offerings (IPOs) was registered in the United States. In 2007 more money will be raised through IPOs in Hong Kong than either New York or London....
What other financial centers are competing against New York and London?
A handful of cities, many of them in Asia, are currently jockeying for position as regional or global financial hubs. [...]

U.S. CONSIDERS CHINA ITS MAJOR STRATEGIC RIVAL, THUS A THREAT ... THUS THE RELENTLESS PROPAGANDA "BRANDING".... ESPECIALLY SINCE U.S ECONOMY IS HEAVILY INDEBTED TO CHINA, BUT WHITE SUPREMACY RUNS SO DEEP THE ARROGANT FOOLS THINK THEY CAN ALWAYS GET THEIR WAY...
China shying from shaky US mortgage market
By Olivia Chung
http://www.atimes.com/atimes/China_Business/IG26Cb02.html
HONG KONG - While China is eager to invest a portion of its US$1.33 trillion foreign-exchange reserve overseas, it is unlikely to take a chance on buying additional US mortgage-backed securities (MBS) as they are now considered too risky, Chinese economists said. During a recent trip to Beijing, US Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson tried to sell China on the idea of buying more MBS....China held $414 billion in US Treasury bonds as of April, according to data compiled by Bloomberg. And according to HUD's website, as of June 2006, China held $107.5 billion in MBS, up from $3 billion in 2003 and $100 million in 2002. Jackson was particularly keen to persuade China's central bank to buy more securities from the Government National Mortgage Association (known colloquially as Ginnie Mae), a mortgage association under HUD. (The figures include securities offered by Ginnie Mae, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp, without providing a breakdown of each agency's holdings.)...
However, it promises to be a tough sell for Jackson. The Chinese government may decline the offer given the current surge in mortgage defaults in the US, Chinese economists said. Moreover, China has invested most of its foreign reserve funds in US-dollar assets and wants to diversify its investment. To improve macroeconomic stability and reduce upward pressure on the yuan, China is setting up an investment agency called the State Investment Co (SIC) to oversee part of its foreign-exchange-reserve investments. While the SIC has yet to be officially launched, it made its first investment in May by spending $3 billion for a stake in the US private-equity firm the Blackstone Group.
China's State Administration of Foreign Exchange (SAFE), which manages the reserves, does not release figures for the proportion of foreign reserves held, but it is estimated that China holds about 70% of its foreign reserves in dollar assets, including treasury bonds..."After seeing how the property prices in China kept soaring, these Chinese companies never thought of the US property market as having problems and they bought a lot of mortgage-backed securities, particularly in the past two years," Yi told Asia Times Online. "Apart from underestimating the level of risk, the better returns offered by MBS over US Treasury bonds also made the Chinese investors unable to judge the high risk of the US mortgage market."

Of the approximately $7 trillion worth of US mortgage securities, subprime loans currently account for about 15%. Thirteen percent of US mortgage delinquencies in the last quarter of 2006 were from subprime loans and about 30 mortgage companies have gone under in the past few months, Yi said. "There are significant financial losses," he said. Yi said some bond ratings agencies that advise investors, including Chinese, also purposely played down the MBS risk. "Some ratings agencies slapped investment-grade ratings on mortgage-backed bonds that they knew they were risky," he charged.
Bond-rating agencies this month finally downgraded about $12 billion worth of subprime US mortgage securities, Yi said.
Economist Shi Weigan echoed Yi's comments. "With a possible burst in the housing bubble in the US, it's not the right choice for Beijing to spend foreign-exchange reserve funds on the US mortgage-backed securities," ...

imperialist war is not for short-term economic gain but for capital's geostrategic expansion of power and profit
Wall Street Has Worst Week in Nearly 5 Years
The Dow was down more than 4 percent for the week, while the Standard & Poor's 500 fell nearly 5 percent.
“And so I want the American people to take a good look at this economy of ours,” Mr. Bush said. “The world is strong — the world economy is strong. I happen to believe one of the main reasons why is because we remain strong.”http://www.nytimes.com/2007/07/28/business/28stox.html?th&emc=th

The american way: predatory by nature: do your patriotic duty, keep buying, get deeper in debt
Economy Expands 3.4%; Interpretation Is Debated
One factor that was critical in keeping the economy afloat this winter underperformed in the spring: the American consumer. Personal consumption, adjusted for inflation, advanced just 1.3 percent, compared with 3.7 percent in the first quarter...If job market conditions worsen as well, that could also cause Americans to curb some of their spending.... http://www.nytimes.com/2007/07/28/business/28econ.html?th&emc=th

why U.S. monopoly capitalism must eliminate big rivals to win global dominance
Markets Around the World Are Marching in Lock Step
...the leader among stock markets was China, which basically failed to participate in this week’s downturn that affected most other markets in the world. Its stock market is almost 80 percent higher than it was after the Feb. 27 fall.... Whereas it was long said that the world caught pneumonia when the United States suffered a cold, it is now the Chinese economy that has taken world leadership. So long as it remains strong, many companies will prosper no matter what the prospects for their home markets....The economic strength this year has been largely in Asia, where there is talk of an overheating Chinese economy and annual growth rates in gross domestic product remain in the double digits. While recessions in America and Europe would presumably damage China’s exports, its growth has so far resisted government efforts to slow it down through higher interest rates.
As a result, the prices of such economically sensitive commodities as oil and copper are significantly higher now than they were in February. ...
A look at world stock market movements, shown in the accompanying charts, since the February plunge shows that major markets now tend to move more in line with one another than ever before, reflecting the dominance of global companies.
http://www.nytimes.com/2007/07/28/business/28markets.html?th&emc=th

U.S. PROPAGANDA HYPE BODES VERY BAD TROUBLE...
“The greatest threat now is ‘a 9/11’ occurring with a group of terrorists armed not with airline tickets and box cutters, but with a nuclear weapon in the middle of one of our own cities."
Dick Cheney on Face the Nation, CBS, April 15, 2007

"By means of shrewd lies, unremittingly repeated, it is possible to make people believe that heaven is hell _ and hell heaven. The greater the lie, the more readily it will be believed."
Adolf Hitler

"It may well be that the key to bolstering Western resolve is another terrorist attack like 9/11 or the London transit bombings of two years ago, he says. If nothing happens, it will be harder still to say this [Canadian meddling in Afghanistan] is necessary."
Chertoff's rationale was illuminated by an interview with Lt. Colonel Doug Delaney, the chair of the war studies program at the Royal Military College in Kingston, Ontario, Canada, a NATO intelligence center in the words of the interviewer:
"A plausible scenario for a military collision with Iran involves Iraqi failure to meet the benchmarks, followed by accusations of Iranian responsibility for the failure; then by some provocation in Iraq or a terrorist act in the US blamed on Iran; culminating in a 'defensive' US action against Iran that plunges a lonely America into a spreading and deepening quagmire eventually ranging across Iraq, Iran, Afghanistan, and Pakistan."

al Qaeda, al Qaeda, al Qaeda, al Qaeda, Did I Mention al Qaeda?
http://suicidegirls.com/news/politics/21980/
Yesterday Bush gave a delightfully refreshing speech on the state of the war in Iraq and the threat we face from terrorists....
Did you know that al Qaeda is in Iraq? It’s true. That is whom we are fighting in Iraq. This month, anyway. Remember when we were going after those WMDs? Then we were liberating an oppressed people from a horrible dictator. Then we were training the Iraqi army to bring stability to the country. After that we were setting up Democracy. Now we are stopping al Qaeda to protect America...We know that because Bush brought up al Qaeda
95 times in his 29-minute speech today. He said Iraq over a hundred times. If our president says something that many times, it must be true.
It’s like an infection. Seems like if we stay there, eventually Iraq will just start calling itself “al Qaeda.” [...]

The role of al qaeda has long been as an agent of western intelligence agencies, whether wittingly or not. That role began in support for the mujihadeen in the 1980s under Reagan, continued with Clinton in Kosovo in the 1990s and continues to fulfil a vital role in justifying US and Uk imperial ambitions. See for example Nafeez Ahmed "The War on Truth" (2005) and his recent working paper "Subverting Terrorism". Daniele Ganser's "Nato's Secret Armies" is a classic study.
The "al qaeda as enemy" discourse is discredited, and as a policy regime it is bankrupt. The sooner Americans realize what their government is really up to and begin real opposition as opposed to the me-too approach of the Democrats the sooner the world will be a safer place.
James O'Neill comment http://www.juancole.com/2007/07/bush-falsehoods-about-al-qaeda-in-iraq.h...

historical american fascist fantasy: conquer the world
"We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order."
David Rockefeller, 1994 Statement to the United Nations Business Council

'BELIEFS' AS PRETEXT FOR MARTIAL LAW
Military Commander Believes Al-Qaida Cells In U.S.
The military commander in charge of defending the U.S. homeland says that he believes that there are Al-Qaida cells in the U.S. or people working to create them. http://tinyurl.com/3ann3s

Bush orders freeze of assets of any threatening Iraq “stabilization efforts”
Joe Kay, WSWS
In an extremely broad executive order issued on July 17, President Bush authorized the Treasury Department to freeze the property of anyone determined to be hindering US actions in Iraq and the stability of the US-backed regime in Baghdad. The wording is vague enough to encompass not only those resisting the occupation directly, but also US citizens involved in antiwar activity. The executive order, issued under the headline, "Blocking Property of Certain Persons Who Threaten Stabilization Efforts in Iraq," cites powers granted to the President under the International Emergency Economic Powers Act of 1977 (IEEPA). That act was originally intended to regulate the power of the US president to declare trade embargos on other countries. Beginning with the Clinton administration, powers under IEEPA have been expanded to include blocking financial assets of individuals targeted by the US, including "designated terrorists" and "designated terrorist organizations."...

Commander Guy Delivers Another Scary “al-Qaeda in Iraq” Campfire Story
Kurt Nimmo, Another Day in the Empire
As Bush, reading once again from a neocon script, this time at the Charleston Air Force Base in South Carolina, insists "al-Qaeda in Iraq" is a threat not only to the occupation of Iraq but grade schoolers at home, it is useful to revisit Nick Possum. "Once upon a time, a long time ago, there was a real Zarqawi. Nobody is willing to tell what really happened to him, but at some point before the invasion of Iraq he vanished from the real world and entered the twilight zone of black operations to become a symbol of evil and a master of disguise. Nowadays he hides out in the CIA complex at Langley, Virginia, a basement in Baghdad’s Green Zone, an office in Kuwait … or maybe all three," Possum wrote on June 1, 2005...
http://www.uruknet.de/?p=34793

FBI Seeks To Pay Telecoms For Data:
The FBI wants to pay the major telecommunications companies to retain their customers' Internet and phone call information for at least two years for the agency's use in counterterrorism investigations and is asking Congress for $5 million a year to defray the cost...
Last year... U.S. Attorney General Alberto R. Gonzales and FBI Director Robert S. Mueller III urged telecom providers to keep subscriber information and network data for two years. Legislation is pending in Congress that would require companies to keep the data. What type and for how long would be up to the attorney general.The administration is also attempting to win immunity for telecom companies from criminal and civil liability for any role in the surveillance program. Telecoms have been providing data legally to the government and then charging for it... cost is about $1.8 million a year since Sept. 11, 2001
http://tinyurl.com/28sc8c

Congressman Denied Access To Post-Attack Continuity Plans
http://www.truthout.org/docs_2006/072407M.shtml
Washington - Constituents called Rep. Peter DeFazio's office, worried there was a conspiracy buried in the classified portion of a White House plan for operating the government after a terrorist attack. As a member of the House Committee on Homeland Security, DeFazio, D-Ore., is permitted to enter a secure "bubbleroom" in the Capitol and examine classified material. So he asked the White House to see the secret documents. On Wednesday, DeFazio got his answer: DENIED.[...]

Bush asks Congress fund nuclear arsenal revamp:
"The future security environment is very uncertain, and some trends are not favorable," it said, pointing to North Korea and Iran as countries whose nuclear programs "underscore the importance of US security guarantees."
http://tinyurl.com/ysoarw

U.S. to Announce Nuclear Exception for India
By David E. Sanger, NYT
WASHINGTON, July 26 — Three years after President Bush urged global rules to stop additional nations from making nuclear fuel, the White House will announce on Friday that it is carving out an exception for India, in a last-ditch effort to seal a civilian nuclear deal between the countries.
R. Nicholas Burns, the under secretary of state for political affairs, who negotiated the deal, said, “Iran in no way, shape or form would merit similar treatment because Iran is a nuclear outlaw state.”...
Because India never signed the treaty, it too was considered a nuclear outlaw for decades. But Mr. Bush, eager to place relations with India on a new footing, waived many of the restrictions in order to sign the initial deal.
Robert J. Einhorn, a scholar at the Center for Strategic and International Studies, said that in “the first phase of negotiations with India, the administration made concessions that put the country on par with countries that have signed” the Nonproliferation Treaty. (Israel and Pakistan are the only other countries that have refused to sign it, and North Korea quit the treaty four years ago.) “Now we’ve gone beyond that, and given India something that we don’t give to Russia and China.”http://www.nytimes.com/2007/07/27/washington/27india.html?th&emc=th

ANOTHER PUPPET PUNISHED FOR POOR SERVICE
The plot to bring back Benazir
"He's one of my best friends," George Bush declared [about Musharraf] at a Washington party in 2006, having overseen a 45,000% increase in aid to Pakistan's military, which now totals more than $4bn.
Since September 11 2001, one figure has emerged as a mainstay of the "war on terror": he is General Pervez Musharraf, president of Pakistan... Musharraf has glad-handed his way around the world, claiming to provide the west with a bridgehead into the badlands of Islamic south Asia... All that has changed. A chill has descended over "Mush and Bush", as the Pakistan press dubbed the US-Pakistan axis... Behind the back-slaps and bonhomie, a plot is afoot to remove the current military leaders and and reinstall Benazir Bhutto, the exiled scion of the country's most famous ruling dynasty. [...]
http://politics.guardian.co.uk/foreignaffairs/story/0,,2130101,00.html
... General Mohammad Zia ul-Haq seized power in Pakistan in a 1977 coup and declared himself president. Soon after the Soviets invaded Afghanistan, that... they were tricked into invading by Zbigniew Brzezinski (see Brzezinski’s interview with Le Nouvel Observateur), Zia forced through pro-Islamic legislation, introduced Islamic banking systems, created Islamic courts, and imposed a religious tax used to create tens of thousands of madrassas or religious schools, primarily out of Peshawar, and basically set-up to act as "jehadi" recruiting centers funded lavishly by the CIA. "One of his most fateful decisions was to turn many of the country’s madrasas, or religious colleges, into factories of jihad," the BBC notes. In addition to creating both the Taliban and "al-Qaeda," Zia’s "Islamization" effort spawned "a 'culture of jihad’ within Pakistan itself—a culture the current military ruler, Pervez Musharraf, is struggling to uproot."

"During the Cold War, but also in its aftermath, the CIA using Pakistan’s Military Intelligence apparatus as a go-between played a key role in training the Mujahideen. In turn, the CIA-sponsored guerrilla training was integrated with the teachings of Islam," writes Michel Chossudovsky. "Every single US administration since Jimmy Carter has consistently supported the so-called 'Militant Islamic Base’, including Osama bin Laden’s Al Qaeda, as part of their foreign policy agenda."... Such directives, engineered to stir up the Muslim world and perpetuate the "clash of civilizations" agenda, resulted in the Lal Masjid (Red Mosque) slaughter in Islamabad, responsible for killing hundreds of people, including women and children. As the Kavkaz Center points out, "ISI officials have in the past been closely connected with the [Lal Masjid] seminary, links that were forged during the Soviet occupation of Afghanistan."

Musharraf’s bloody raid has stirred up the locals in Waziristan, who are in open revolt [digest note:led by pro-U.S. "pro-democracy forces], thus prompting factotum Mike McConnell to set the stage for an attack of Pakistan... that state receives a large boondoggle from the United States, a pay-off in the "war on terrorism."... Musharraf will be sacrificed for the larger plan—the clash of civilizations... to agitate the CIA spawned and nurtured "Militant Islamic Base" in P2OG fashion, essentially a GWOT psyop designed to get the ball rolling for the next few generations, as promised. Soon enough, Pakistan, or the artificially created Islamic Emirate of Waziristan, will be visited by C-130 gunships, as "suspected al-Qaida operatives" in southern Somalia were visited and subsequently killed, along with no shortage of villagers, the inevitable collateral damage of neocon policies. [digest note: bipartisan U.S. imperialism] ... Iraq, with its "sectarian violence" working toward the country’s ultimate balkanization, is the template to be imposed on Pakistan [...]www.uruknet.info?p=34718

U.S.-SPONSORED 'PRO-DEMOCRACY' AT WORK AGAIN
Fury Erupts as Mosque in Pakistan Is Re-Opened
Fervent protests and a deadly explosion quickly followed the Pakistani government’s first attempt to reopen Islamabad’s Red Mosque, which was closed after a standoff with Islamic militants killed over 100.
Last week, Pakistan’s Supreme Court reinstated its chief justice, who Mr. Musharraf sought to dismiss. The judge quickly grew into a national figure, leading pro-democracy protests against Mr. Musharraf.
http://www.nytimes.com/2007/07/27/world/asia/27cnd-stan.html?ref=world

U.S. says Qaeda in Pakistan safe haven may be inaccessible
By David Morgan
http://news.yahoo.com/s/nm/20070725/ts_nm/usa_pakistan_qaeda_dc
WASHINGTON (Reuters) - Al Qaeda's safe haven in northwestern Pakistan is largely inaccessible to outside forces and unlikely to be eliminated soon by the U.S. or Pakistani military, top intelligence officials said Wednesday. At a hearing in the U.S. House of Representatives, Pentagon intelligence chief James Clapper said the United States was not content to sit still while the militant network blamed for the September 11 attacks on New York and Washington regenerated its strength in North Waziristan. "I think our objective will be to neutralize, not eliminate, but certainly make this safe haven -- as we have the others -- less safe and less appealing for AQ," Clapper told a joint session of the House armed services and intelligence committees.
But Clapper, undersecretary of defense for intelligence, presented the task of eliminating al Qaeda's influence in the region as a long-term project that would hinge on U.S. economic aid to the local populace and contributions of military assistance including sophisticated surveillance equipment to the Pakistani military. "This is going to be a long-haul process," he said. "I don't think we'll have any demonstrable change within (a) three-year time frame."
Added Clapper, "It's not just ... putting bombs on targets. He and other administration officials spoke to lawmakers about al Qaeda's emergence in Pakistan after White House homeland security adviser Frances Townsend refused to rule out U.S. military action against al Qaeda.[...]

IMPERIALIST TRADITION: DIVIDE ET IMPERA
Eric S. Margolis
www.ericmargolis.com/archives/2007/07/is_the_us_prepa.php

Musharraf advised by his close military aides to quit: Report:
Though the President did not react to the suggestions, the sources said he might make a decision after his return from an official tour of Saudi Arabia where he's likely to raise this issue with the Saudis in a bid to find "a way out of the political mess without any loss of face".
http://tinyurl.com/39st4t

Musharraf & Bhutto to Share Rule
The accord -- which will allow General Musharraf another five years as president and Ms Bhutto, who is now living in exile, a chance for a third term as prime minister -- was "signed and sealed" at a secret face-to-face weekend meeting in Abu Dhabi, it was reported.
http://www.theaustralian.news.com.au/story/0,25197,22154214-2703,00.html

Bhutto said she was planning her return to Pakistan this year to help stabilise the country in the face of the extremist Islamiist threat.
http://tinyurl.com/228q4s

February 1, 2007, Zbigniew Brzezinski warned the Senate Foreign Relations Committee of ongoing machinations designed to procure war with Iran and beyond...

SAUDI ARABIA
Saudis’ Role in Iraq Frustrates U.S. Officials
Helene Cooper
During a high-level meeting in Riyadh in January, Saudi officials confronted a top American envoy with documents that seemed to suggest that Iraq’s prime minister could not be trusted. One purported to be an early alert from the prime minister, Nuri Kamal al-Maliki, to the radical Shiite cleric Moktada al-Sadr warning him to lie low during the coming American troop increase, which was aimed in part at Mr. Sadr’s militia. Another document purported to offer proof that Mr. Maliki was an agent of Iran.The American envoy, Zalmay Khalilzad, immediately protested to King Abdullah of Saudi Arabia, contending that the documents were forged...
The Bush administration’s frustration with the Saudi government has increased in recent months because it appears that Saudi Arabia has stepped up efforts to undermine the Maliki government and to pursue a different course in Iraq from what the administration has charted. Saudi Arabia has also stymied a number of other American foreign policy initiatives, including a hoped-for Saudi embrace of Israel...
http://www.nytimes.com/2007/07/27/world/middleeast/27saudi.html?th&emc=t...

U.S. to Offer Huge Arms Deals to Saudi Arabia, Israel and Others
The Bush administration will ask Congress to approve an arms sale package for Saudi Arabia and its neighbors that is expected to total $20 billion when some officials contend the Saudis are playing a counterproductive role in Iraq...and promising Israel a 43% increase of $30.4 billion in military aid over the next decade...“The role of the Sunni Arab neighbors is to send a positive, affirmative message to moderates in Iraq in government that the neighbors are with you,” a senior State Department official told reporters in a conference call on Friday. More specifically, the official said, the United States wants the gulf states to make clear to Sunnis engaged in violence in Iraq that such actions are “killing your future.”... The $20 billion price tag on the package is more than double what officials originally estimated when details became public this spring. Even the higher figure is a rough estimate that could fluctuate depending on the final package, which would be carried out over a number of years, officials said....
Worried about the impression that the United States was starting an arms race in the region, State and Defense Department officials stressed that the arms deal was being proposed largely in response to improvements in Iran’s military capabilities and to counter the threat posed by its nuclear program, which the Bush administration contends is aimed at building nuclear weapons.
Along with Saudi Arabia, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates are likely to receive equipment and weaponry from the arms sales under consideration, officials said. In general, the United States is interested in upgrading the countries’ air and missile defense systems, improving their navies and making modest improvements in their air forces, administration officials said, though not all the packages would be the same... In defending the proposed sale to Saudi Arabia and other gulf states, the officials noted that the Saudis and several of the other countries were in talks with suppliers other than the United States. If the packages offered to them by the United States are blocked or come with too many conditions, the officials said, the Persian Gulf countries could turn elsewhere for similar equipment, reducing American influence in the region.
http://www.nytimes.com/2007/07/28/washington/28weapons.html?th&emc=th

...officials said the plan to bolster the militaries of Persian Gulf countries is part of an American strategy to contain the growing power of Iran in the region and to demonstrate that, no matter what happens in Iraq, Washington remains committed to its longtime Arab allies. Officials from the State Department and the Pentagon agreed to outline the terms of the deal after some details emerged from closed briefings this week on Capitol Hill.
http://www.nytimes.com/2007/07/28/washington/28weapons.html?th&emc=th

[Brzezinski and] The Betrayal Of Afghanistan
John Pilger
http://www.zmag.org/content/showarticle.cfm?ItemID=4230by John Pilger
..."According to the official view of history," Zbigniew Brzezinski, President Carter's national security adviser, admitted in an interview in 1998, "CIA aid to the mojahedin began during 1980, that is, after the Soviet army invaded Afghanistan... But the reality, secretly guarded until now, is completely otherwise." At Brzezinski's urging, in July 1979 Carter authorised $500m to help set up what was basically a terrorist organisation. The goal was to lure Moscow, then deeply troubled by the spread of Islamic fundamentalism in the Soviet central Asian republics, into the "trap" of Afghanistan, a source of the contagion. For 17 years, Washington poured $4bn into the pockets of some of the most brutal men on earth - with the overall aim of exhausting and ultimately destroying the Soviet Union in a futile war. One of them, Gulbuddin Hekmatyar, a warlord particularly favoured by the CIA, received tens of millions of dollars. His speciality was trafficking opium and throwing acid in the faces of women who refused to wear the veil. In 1994, he agreed to stop attacking Kabul on condition that he was made primeminister - which he was. Eight years earlier, CIA director William Casey had given his backing to a plan put forward by Pakistan's intelligence agency, the ISI, to recruit people from around the world to join the Afghan jihad. More than 100,000 Islamic militants were trained in Pakistan between 1986 and 1992, in camps overseen by the CIA and MI6, with the SAS training future al-Qaida and Taliban fighters in bomb- making and other black arts. Their leaders were trained at a CIA camp in Virginia. This was called Operation Cyclone and continued long after the Soviets had withdrawn in 1989.

"I confess that [countries] are pieces on a chessboard," said Lord Curzon, viceroy of India in 1898, "upon which is being played out a great game for the domination of the world." Brzezinski, adviser to several presidents and a guru admired by the Bush gang, has written virtually those same words. In his book The Grand Chessboard: American Primacy And Its Geostrategic Imperatives, he writes that the key to dominating the world is central Asia, with its strategic position between competing powers and immense oil and gas wealth. "To put it in terminology that harkens back to the more brutal age of ancient empires," he writes, one of "the grand imperatives of imperial geostrategy" is "to keep the barbarians from coming together"....

When the Soviet Union finally collapsed, the chessboard was passed to the Clinton administration. The latest mutation of the mojahedin, the Taliban, now ruled Afghanistan. In 1997, US state department officials and executives of the Union Oil Company of California (Unocal) discreetly entertained Taliban leaders in Washington and Houston, Texas. They were entertained lavishly, with dinner parties at luxurious homes in Houston. They asked to be taken shopping at a Walmart and flown to tourist attractions, including the Kennedy Space Centre in Florida and Mount Rushmore in South Dakota, where they gazed upon the faces of American presidents chiseled in the rockface. The Wall Street Journal, bulletin of US power, effused, "The Taliban are the players most capable of achieving peace in Afghanistan at this moment in history. In January 1997, a state department official told journalists in a private briefing that it was hoped Afghanistan would become an oil protectorate, "like Saudi Arabia". It was pointed out to him that Saudi Arabia had no democracy and persecuted women. "We can live with that," he said.

The American goal was now the realisation of a 60-year "dream" of building a pipeline from the former Soviet Caspian across Afghanistan to a deep-water port. The Taliban were offered 15 cents for every 1,000 cubic feet of gas that passed through Afghanistan. Although these were the Clinton years, pushing the deal were the "oil and gas junta" that was soon to dominate George W Bush's regime. They included three former members of George Bush senior's cabinet, such as the present vice-president, Dick Cheney, representing nine oil companies, and Condoleezza Rice, now national security adviser, then a director of Chevron-Texaco with special responsibility for Pakistan and Central Asia...
Since it overthrew the Taliban, the US has established 13 bases in the nine former Soviet central Asian countries that are Afghanistan's resource-rich neighbours. Across the world, there is now an American military presence at the gateway to every major source of fossil fuel... It's what the US Space Command calls "full spectrum dominance"... from the vast, Soviet-built base at Bagram, near Kabul, that the US controls the land route to the riches of the Caspian Basin. But, as in that other conquest, Iraq, all is not going smoothly. "We get shot at every time we go off base," said Colonel Rod Davis. "For us, that's a combat zone out there." I said to him, "But President Bush says you liberated Afghanistan. Why should people shoot at you?" "Hostile elements are everywhere, my friend."[...]

ANALYSIS EVEN MORE RELEVANT 5 YRS. LATER:
BEHIND THE INVASION OF IRAQ: The Current Strategic Agenda of the United States [excerpt]
by R.U.P.E. (Research Unit for Political Economy) in India
Nos. 33 & 34 Dec. 2002 http://www.rupe-india.org/
From the introduction: “We are about to witness a major new development, with far-reaching consequences: the direct imperialist occupation of the
whole of Iraq. Further, it is widely reported in the American press that the United States plans to use the invasion of Iraq as a launching pad for a
drastic re-shaping of West Asia.”
The global crisis of capitalist overproduction is showing up the underlying weakness of the US real economy, as a result of which US trade and budget deficits are galloping. The euro now poses a credible alternative to the status of the dollar as the global reserve currency, threatening the US’s crucial ability to fund its deficits by soaking up the world’s savings. The US anticipates that the capture of Iraq, and whatever else it has in store for
the region, will directly benefit its corporations (oil, arms, engineering, financial) even as it shuts out the corporations from other imperialist countries. Further, it intends to prevent the bulk of petroleum trade being conducted in euros, and thus maintain the dollar’s supremacy. In a broader sense, that re-assertion of its supremacy (in military terms to control of strategic resources) will prevent the emergence of any serious imperialist challenger... In that sense the present campaign is in line with the Pentagon’s 1992 Defense Planning Guidance, which called for preventing any other major power from acquiring the strength to develop into a challenger to the US’s solitary supremacy. (A European foothold even in Iran could bring about a euro-based oil economy; this perhaps explains the puzzling inclusion of Iran in the “axis of evil.”)

For these very reasons, the US is facing more serious opposition from France, Germany and Russia in relation to Iraq than on any strategic issue
in the past. Since the collapse of the Soviet Union no imperialist power has had the military muscle to oppose US unilateralism, and other powers have focused instead on getting their minor share of the spoils of the former Soviet empire and the intensified plunder of the Third World. However, these powers see that the present campaign is intended precisely to shut them out of contention for equal status with the US in the long term as well.
Contention for such status is the very reason for the EU’s existence.

At the same time direct control over the region’s petroleum resources will give the US another important lever to use against China, which will
become considerably more dependent on petroleum imports during the next decade. The US sees capitalist China as a potential threat to its plans for domination of East and Southeast Asia. The US has taken various steps to block China’s plans to obtain independent (i.e., not controlled by the US), stable access to West Asian oil or Caspian oil. The US has already installed its military throughout oil- and gas-rich Central Asia; now it is in the process of doing so in vastly richer West Asia....

Global span: Casting its eye about the world, NSSUSA spells out America’s tasks in different regions.
Europe is to be kept subordinate to, and dependent on, American power. For the last decade the US has been troubled by the fact that the rationale for the North Atlantic Treaty Organisation (NATO), namely, the threat from the Soviet bloc, no longer exists. Though Europe is now contemplating setting up its independent military organisation, the US will work “to ensure tha these developments work with NATO.” The document re-shapes NATO as a global interventionist force under American leadership: “The alliance must be able to act wherever our interests are threatened, creating coalitions under NATO’s own mandate, as well as contributing to mission-based coalitions.”
Rather than develop its own arms industry and forces, Europe should “take advantage of technological opportunities and economies of scale in our defence spending”... in line with the view of the secret “Defence Planning Guidance” prepared in May 1990 by Paul Wolfowitz and I. Lewis Libby for the then defence secretary Dick Cheney and partially leaked to the New York Times in the spring of 1992. Mapping out US policy in the wake of
the collapse of the Soviet empire, it asserted that “it is of fundamental importance to preserve NATO as the primary instrument of western defence and security, as well as the channel for US influence and participation in European security affairs. While the US supports the goal of European integration, we must seek to prevent the emergence of European-only security arrangements which would undermine NATO, particularly the alliance’s integrated command structures.”

NSSUSA [National Security Strategy USA] issues a blunt warning to China against “pursuing advanced military capabilities that can threaten its neighbours in the Asia-Pacific region.” The US threatens China with interference in its internal affairs: “To make that nation truly accountable to its citizens’ needs and aspirations... much work remains to be done.” US deployments in the region are to be beefed up, and in order
to ensure that American troops are stationed as close as possible to China, South Korea is to be convinced to “maintain vigilance
[i.e. hostility] towards the North while preparing our alliance to make contributions to the broader stability of the region over the longer term.”

In contrast with China, India is presented as a pillar of American influencein Asia: “We (the US and India) are the two largest democracies, committed to political freedom protected by representative government. India is moving toward greater economic freedom as well. We have a common interest in the free flow of commerce, including through the vital sea lanes of the Indian Ocean. Finally, we share an interest in fighting terrorism and in creating a strategically stable Asia.” ...and India’s nuclear and missile programmes are treated as “past” concerns. [see 7/27/7 news in this digest re: U.S. - India nuclear development] India is presented as “a growing world power with which we have common strategic interests.” (The mere fact of being bracketed
with China and Russia as a “potential great power” is deeply satisfying to the Indian ruling elite, which has been angling for some such certificate
from the US—however far from objective reality.)

Preventing the emergence of imperialist rivals
Just as NSSUSA celebrates the US’s “unprecedented—and unequalled—strength and influence” as “a time of opportunity”, it warns too that it will defend this solitary position. Indeed American “national security” lies in th absence of any other great power. “We are attentive to the possible renewal of old patterns of great power competition.... our military must... dissuad future military competition.... Our forces will be strong enough to
dissuad potential adversaries from pursuing a military build-up in hopes of surpassing, or equalling, the power of the United States.” This unmistakably echoes the 1990 Defence Planning Guidance document: “Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed by the Soviet Union which requires preventing any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power. These regions are western Europe, east Asia, the territory of the former Soviet Union, and south-west Asia [i.e., the oil-producing region].... Finally, we must maintain the mechanisms for deterring potential competitors from ever aspiring to a larger regional or
global role.” (emphasis added) But whereas the 1990 Defence Planning Guidance was a secret document, the 2002 NSSUSA is a public declaration
that the world’s sole superpower will not tolerate even potential rivalry....

The real reason for targeting the Muslim states, of course, has nothing to do with terrorism and everything to do with the fact that, by remarkable
coincidence, so many of them—in West Asia, North Africa, the Caspian and even southeast Asia—happen to be rich in hydrocarbons. In that regard,
however, the tactful NSSUSA is Hamlet without the prince of Denmark: the words “oil”, “petroleum” and “hydrocarbons” nowhere occur, and there is
just a single reference to working “to expand the sources and types of global energy supplied, especially in the Western Hemisphere, Africa, Central Asia and the Caspian region.”

“Every weapon”
Finally, the NSSUSA says that “we must make use of every tool in our arsenal”, echoing Bush’s words after the September 11 attacks: “We will use
every necessary weapon of war.” It is worth examining the array of weapons...

Using weapons of mass destruction: There is active preparation for the use of nuclear weapons. The March 2002 leak of the Pentagon’s “nuclear posture review” revealed that the earlier concept that nuclear weapons are only a form of deterrence, to be used in retaliation against other nuclear powers, has been dumped. The new position foresees the use of “low-yield” nuclear weapons in three scenarios: against targets able to withstand attacks by non-nuclear weapons (such as underground bunkers); in retaliation for an attack with nuclear, biological or chemical weapons; and “in the event of surprising military developments”, such as an “Iraqi attack on Israel or its neighbours, or a North Korean attack on South Korea or a military
confrontation over the status of Taiwan”. “North Korea, Iraq, Iran, Syria and Libya are among the countries that could be involved in immediate,
potential or unexpected contingencies,” it says. A report published las year by America’s National Institute for Public Policy, a right-wing
thinktank, declared that “nuclear weapons can... be used in counter-force attacks that are intended to neutralise enemy military capabilities”. The
authors of the report include senior Pentagon officials and the deputy national security adviser. Geoff Hoon, British defence secretary, told MPs
earlier this year: “I am absolutely confident, in the right conditions, we would be willing to use our nuclear weapons.” (“The new nukes”, Richard
Norton-Taylor, Guardian, 6/8/02)

The talk of “low-yield” nuclear weapons is merely to prepare the ground for using nuclear weapons as such. The Defence Threat Reduction Agency, a $1. billion agency set up in 1998, is studying how to attack hardened and deeply buried bunkers with high-yield nuclear weapons. (Washington Post,
10/6/02)...

Till now biological weapons programmes have been carried on under cover of peaceful uses. Now the Pentagon is openly pushing for the development of offensive biological weapons “to produce systems that will degrade the warfighting capabilities of potential adversaries”. While leading naval and air force laboratories presented proposals to this effect in 1997, the Marine Corps has now submitted them for assessment by the US National Academy of Sciences. (Counterpunch, 8/5/02) The NSSUSA’s eagerness to get control of the public health systems of third world countries should be seenin this light.

Agent provocateurs, disinformation: A secret army has been set up by the Pentagon. It will unite CIA and military covert action, information
warfare, and deception. (“Information warfare” is the deliberate spread of falsehoods
as a weapon of war.) Its purpose would be to provoke terrorist attacks which would then justify “counter-attack” by the US on countries “harbouring the terrorists”: “Rumsfeld’s influential Defence Science Board 2002 Summer Study on Special Operations and Joint Forces in Support of Countering Terrorism says in its classified ‘outbrief’—a briefing drafted to guide other Pentagon agencies—that the global war on terrorism ‘requires new strategies, posture and organization.’ The board recommends creation of a super-Intelligence Support Activity, an organization it dubs the Proactive, Preemptive Operations Group, (P2OG), to bring together CIA and military covert action, information warfare, intelligence, and cover and deception. Among other things, this body would launch secret operations aimed at ‘stimulating reactions’ among terrorists and states possessing weapons of mass destruction—that is, for instance, prodding terrorist cells into action and exposing themselves to ‘quick-response’ attacks by U.S. forces. Such
tactics would hold ‘states/sub-state actors accountable’ and ‘signal to harboring states that their sovereignty will be at risk,’ the briefing paper
declares.” (William Arkin, Los Angeles Times 27/10/02; emphasis added)

The New York Times reported on February 19 that the Pentagon’s new “Office of Strategic Influence” (OSI) is “developing plans to provide news items, possibly even false ones, to foreign media organizations” in an effort “to influence public sentiment and policy makers in both friendly and
unfriendl countries.” The OSI was created shortly after September 11 2001, supposedl to publicise the U.S. government’s perspective in Islamic countries and generate support for the U.S.’s “war on terror.” According to the Times, “one of the military units assigned to carry out the policies of the Offic of Strategic Influence” is the U.S. Army’s Psychological Operations Command (PSYOPS)....
Clearly, current US plans represent a radical break from traditional strategies for maintaining global domination. This sudden consensus among
all sectors of the US ruling class for bold and potentially risky action can only be understood as a response to a profoundly threatening [capitalist]
crisis. [...]

"The CIA owns everyone of any significance in the major media."
former CIA Director William Colby

Ordinary people in the United States have been manipulated into imagining they are a people under siege whose sole refuge and protector is their government. If it isn't the Communists, it's Al Qaeda. If it isn't Cuba, it's Nicaragua. As a result, this, the most powerful nation in the world - with its unmatchable arsenal of weapons, its history of having waged and sponsored endless wars, and the only nation in history to have actually used nuclear bombs - is peopled by a terrified citizenry, jumping at shadows. A people bonded to the state not by social services, or public health care, or employment guarantees, but by fear. This synthetically manufactured fear is used to gain public sanction for further acts of aggression.
Arundhati Roy

THE ARROGANT, RACIST HUBRIS OF U.S. PSYWAR PROPAGANDA WOULD BE FUNNY IF IT WASN'T COVER FOR GENOCIDE
Pentagon Gets a Lesson From Madison Avenue: U.S. Needs to Devise a Different 'Brand' to Win Over the Iraqi People, Study Advises
By Karen DeYoung
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/20/AR200707...
In the advertising world, brand identity is everything. Volvo means safety. Colgate means clean. IPod means cool. But since the U.S. military invaded Iraq in 2003, its "show of force" brand has proved to have limited appeal to Iraqi consumers, according to a recent study commissioned by the U.S. military. The key to boosting the image and effectiveness of U.S. military operations around the world involves "shaping" both the product and the marketplace, and then establishing a brand identity that places what you are selling in a positive light, said clinical psychologist Todd C. Helmus, the author of "Enlisting Madison Avenue: The Marketing Approach to Earning Popular Support in Theaters of Operation." The 211-page study, for which the U.S. Joint Forces Command paid the Rand Corp. $400,000, was released this week.

Helmus and his co-authors concluded that the "force" brand, which the United States peddled for the first few years of the occupation, was doomed from the start and lost ground to enemies' competing brands. While not abandoning the more aggressive elements of warfare, the report suggested, a more attractive brand for the Iraqi people might have been "We will help you." That is what President Bush's new Iraq strategy is striving for as it focuses on establishing a protective U.S. troop presence in Baghdad neighborhoods, training Iraq's security forces, and encouraging the central and local governments to take the lead in making things better.... Helmus acknowledged that it could be too late for extensive rebranding of the U.S. effort in Iraq. But Duane Schattle, whose urban operations office at the Joint Forces Command ordered the study, said that "cities are the battlegrounds of the future" and what has happened in Baghdad provides lessons for the future. "This isn't just about going in and blowing things up," Schattle said. "This is about working in a very complex environment." In an urban insurgency, for example, civilians can help identify enemy infiltrators and otherwise assist U.S. forces. They are less likely to help, the study says, when they become "collateral damage" in U.S. attacks, have their doors broken down or are shot at checkpoints because they do not speak English. Cultural connections -- seeking out the local head man when entering a neighborhood, looking someone in the eye when offering a friendly wave -- are key.The most successful companies, the Rand study notes, are those that study their clientele and shape their workplace and product in ways that incorporate their brand into every interaction with consumers.

Wal-Mart's desired identity as a friendly shop where working-class customers can feel comfortable and find good value, for example, would be undercut if telephone operators and sales personnel had rude attitudes, or if the stores offered too much high-end merchandise. For the U.S. military and U.S. officials, understanding the target customer culture is equally critical. Helmus recommends expanding military training to include shaping and branding concepts such as cultural awareness, and the study underscores the perils of failing to understand your consumer.

"Certain things do not translate well," the study warned. "Danger lies behind assumptions of similarity." A gesture Bush made during his 2005 inaugural parade -- the University of Texas "hook 'em horns" salute with raised index and pinkie fingers -- stands for the "sign of the devil" in some cultures and an indication of marital infidelity in others. A leaflet dropped to intimidate Iraqi insurgents, the study noted, "also reached noncombatants" and "gave everyone who picked it up the 'evil eye.' " "Words cause similar cultural confusion," it said. The Arabic word "jihad," for example, has religious connotations for Muslims; its repeated use to connote terrorism is insulting and also perversely lends legitimacy to violent acts....urban ops, he said, is all about experimenting and adapting to new realities. "We want to look at new concepts, new business practices, to see if there are things that we can learn," he said. Since his office was established after the U.S. military issued a new doctrine for urban warfare in 2002, "we've been collecting lessons learned from all over the world," he said. "Not just Iraq and Afghanistan, but places like the Philippines and South America. Wherever there have been fights, we went out and looked at them."

The challenge for the advertising study, he said, was to find "something we can learn from Madison Avenue or from the marketers, the best in the world, that might help us when we're trying to deliver a message about what democracy is." In Iraq, Schattle said, the "urban population is the center of gravity" and the problem is "how we influence them to be on our side, or at least not be an enemy" when "what they see is armor." The goal of such studies, Schattle said, is to distill what works and incorporate it into future training.

Adversaries are doing their own shaping [and winning] on Iraq's urban battlefields [emphasis added] While intimidation, coercion and assassination might not make them beloved, such techniques effectively limit public outreach to U.S. forces, the Rand study notes. Enemy forces have also learned that "doing good works is a classic approach to winning friends and influencing people" and frequently provide basic services that the U.S. military is unable to match. At the same time, Helmus said, U.S. military and civilian authorities must stop thinking of themselves as a "good-idea factory" whose every thought has greater merit than those of their customers. "Procter & Gamble doesn't even do that," he said.

WHICH SIDE WILL YOU BE ON, AS THE SAYING SAYS

Resistance on the rise
Nermeen Al-Mufti, Al-Ahram Weekly
...Pentagon figures say that resistance attacks in June were among the highest since May 2003. A total of 5,335 attacks were mounted against the occupation forces and the Iraqi security forces in June, a figure that is 2.5 per cent lower than the record of 5,472 seen in October 2006. The Bush administration deployed 28,000 additional troops last month as part of its controversial plan to "stabilise" the country. Attacks against Iraqi civilians dropped by 18 per cent last month, from 932 in May to 763 in June. Attacks on coalition forces rose by seven per cent, from 3,423 to 3,671, during the same period... http://www.uruknet.de/?p=34823

This is a living people...Iraq is Iraq..U.S. is Terrified
Ali Al Sarraf - Al Moharer
Despite all the crimes endured by millions of Iraqis, like the continuous bloodthirsty US bombings, systematic mass murder, death squads, terrorism, poverty, displacements and tortures.. the Iraqi will and resolve are far from broken. Four years have passed and the US thugs behave in this country Iraq like a rampaging beast, spreading death everywhere they are.. But the rogues US are petrified.. They see in every Iraqi a possible threat.. They shoot on civilians and at random to terrorize people, but in fact they are the terrorized.... http://www.uruknet.de/?p=34733

Fresh from the Iraqi Oven.
Layla Anwar, An Arab Woman Blues - Reflections in a sealed bottle...
13 American soldiers met their fate yesterday in Adhamiya alone... Adhamiya... The Ghetto of the 21st century...The Aushwitz wall of Adhamiya....and contrary to "popular" belief the explosives used were NOT made in Iran (...) In Adhamiya, American tanks are stationed on every single street corner. They (the yankees) have gone as mad as rabid dogs since yesterday... Inhabitants of Adhamiya are literally buried at home, soaking in sweat, no water, no possibility to go and buy food and no electricity with an average temperature reaching 53C..... http://www.uruknet.de/?p=34833