This passionate essay by Chris Hedges underlines in no uncertain terms, who is calling the shots today. And why. Does this contribute to our understanding of the breakdown of the economy that Chris Martenson describes or is it peripheral? I hope that Chris and others will respond.
The Disease of Permanent War
Monday 18 May 2009
by: Chris Hedges
original @ Truthdig
The embrace by any society of permanent war is a parasite that devours the heart and soul of a nation. Permanent war extinguishes liberal, democratic movements. It turns culture into nationalist cant. It degrades and corrupts education and the media, and wrecks the economy. The liberal, democratic forces, tasked with maintaining an open society, become impotent. The collapse of liberalism, whether in imperial Russia, the Austro-Hungarian Empire or Weimar Germany, ushers in an age of moral nihilism. This moral nihilism comes is many colors and hues. It rants and thunders in a variety of slogans, languages and ideologies. It can manifest itself in fascist salutes, communist show trials or Christian crusades. It is, at its core, all the same. It is the crude, terrifying tirade of mediocrities who find their identities and power in the perpetuation of permanent war.
It was a decline into permanent war, not Islam, which killed the liberal, democratic movements in the Arab world, ones that held great promise in the early part of the 20th century in countries such as Egypt, Syria, Lebanon and Iran. It is a state of permanent war that is finishing off the liberal traditions in Israel and the United States. The moral and intellectual trolls-the Dick Cheneys, the Avigdor Liebermans, the Mahmoud Ahmadinejads-personify the moral nihilism of perpetual war. They manipulate fear and paranoia. They abolish civil liberties in the name of national security. They crush legitimate dissent. They bilk state treasuries. They stoke racism.
"War," Randolph Bourne commented acidly, "is the health of the state." In "Pentagon Capitalism" Seymour Melman described the defense industry as viral. Defense and military industries in permanent war, he wrote, trash economies. They are able to upend priorities. They redirect government expenditures toward their huge military projects and starve domestic investment in the name of national security. We produce sophisticated fighter jets, while Boeing is unable to finish its new commercial plane on schedule. Our automotive industry goes bankrupt. We sink money into research and development of weapons systems and neglect renewable energy technologies to fight global warming. Universities are flooded with defense-related cash and grants, and struggle to find money for environmental studies. This is the disease of permanent war. Massive military spending in this country, climbing to nearly $1 trillion a year and consuming half of all discretionary spending, has a profound social cost. Bridges and levees collapse. Schools decay. Domestic manufacturing declines. Trillions in debts threaten the viability of the currency and the economy. The poor, the mentally ill, the sick and the unemployed are abandoned. Human suffering, including our own, is the price for victory.
Citizens in a state of permanent war are bombarded with the insidious militarized language of power, fear and strength that mask an increasingly brittle reality. The corporations behind the doctrine of permanent war, who have corrupted Leon Trotsky's doctrine of permanent revolution, must keep us afraid. Fear stops us from objecting to government spending on a bloated military. Fear means we will not ask unpleasant questions of those in power. Fear means that we will be willing to give up our rights and liberties for security. Fear keeps us penned in like domesticated animals. Melman, who coined the term permanent war economy to characterize the American economy, wrote that since the end of the Second World War, the federal government has spent more than half its tax dollars on past, current and future military operations. It is the largest single sustaining activity of the government. The military-industrial establishment is a very lucrative business. It is gilded corporate welfare. Defense systems are sold before they are produced. Military industries are permitted to charge the federal government for huge cost overruns. Massive profits are always guaranteed. Foreign aid is given to countries such as Egypt, which receives some $3 billion in assistance and is required to buy American weapons with $1.3 billion of the money. The taxpayers fund the research, development and building of weapons systems and then buy them on behalf of foreign governments. It is a bizarre circular system. It defies the concept of a free-market economy. These weapons systems are soon in need of being updated or replaced. They are hauled, years later, into junkyards where they are left to rust. It is, in economic terms, a dead end. It sustains nothing but the permanent war economy.
Those who profit from permanent war are not restricted by the economic rules of producing goods, selling them for a profit, then using the profit for further investment and production. They operate, rather, outside of competitive markets. They erase the line between the state and the corporation. They leech away the ability of the nation to manufacture useful products and produce sustainable jobs. Melman used the example of the New York City Transit Authority and its allocation in 2003 of $3 billion to $4 billion for new subway cars. New York City asked for bids, and no American companies responded. Melman argued that the industrial base in America was no longer centered on items that maintain, improve, or are used to build the nation's infrastructure. New York City eventually contracted with companies in Japan and Canada to build its subway cars. Melman estimated that such a contract could have generated, directly and indirectly, about 32,000 jobs in the United States. In another instance, of 100 products offered in the 2003 L.L. Bean catalogue, Melman found that 92 were imported and only eight were made in the United States.
The late Sen. J. William Fulbright described the reach of the military-industrial establishment in his 1970 book "The Pentagon Propaganda Machine." Fulbright explained how the Pentagon influenced and shaped public opinion through multimillion-dollar public relations campaigns, Defense Department films, close ties with Hollywood producers, and use of the commercial media. The majority of the military analysts on television are former military officials, many employed as consultants to defense industries, a fact they rarely disclose to the public. Barry R. McCaffrey, a retired four-star Army general and military analyst for NBC News, was, The New York Times reported, at the same time an employee of Defense Solutions Inc., a consulting firm. He profited, the article noted, from the sale of the weapons systems and expansion of the wars in Iraq and Afghanistan he championed over the airwaves.
Our permanent war economy has not been challenged by Obama and the Democratic Party. They support its destructive fury because it funds them. They validate its evil assumptions because to take them on is political suicide. They repeat the narrative of fear because it keeps us dormant. They do this because they have become weaker than the corporate forces that profit from permanent war. The hollowness of our liberal classes, such as the Democrats, empowers the moral nihilists. A state of permanent war means the inevitable death of liberalism. Dick Cheney may be palpably evil while Obama is merely weak, but to those who seek to keep us in a state of permanent war, it does not matter. They get what they want. Fyodor Dostoevsky wrote "Notes From the Underground" to illustrate what happens to cultures when a liberal class, like ours, becomes sterile, defeated dreamers. The main character in "Notes From the Underground" carries the bankrupt ideas of liberalism to their logical extreme. He becomes the enlightenment ideal. He eschews passion and moral purpose. He is rational. He prizes realism over sanity, even in the face of self-destruction. These acts of accommodation doom the Underground Man, as it doomed imperial Russia and as it will doom us.
I never even managed to become anything: neither wicked nor good, neither a scoundrel nor an honest man, neither a hero nor an insect," the Underground Man wrote. "And now I am living out my life in my corner, taunting myself with the spiteful and utterly futile consolation that it is even impossible for an intelligent man seriously to become anything, and only fools become something.
We have been drawn into the world of permanent war by these fools. We allow fools to destroy the continuity of life, to tear apart all systems, economic, social, environmental and political, that sustain us. Dostoevsky was not dismayed by evil. He was dismayed by a society that no longer had the moral fortitude to confront the fools. These fools are leading us over the precipice. What will rise up from the ruins will not be something new, but the face of the monster that has, until then, remained hidden behind the facade.
This is one component of the problem we face today, but this article doesn't look high enough up in the capital chain to identify what the higher-level reason is. It makes it look like the Pentagon is this evil thing that orchestrates all of it and if only we could get control of it we'd be ok. I don't think so. If what this article is saying about interests that create permanent war is true (I think it is), the Pentagon is more of a tool used by more strategic interests that influence the world and cause it to react. The civilian leadership creates the strategic policy for all sectors of the economy, including defense, that has caused the hollowing out of our manufacturing base, and that civilian leadership is not driven by constituents anymore, but by organized long-standing financial interests/lobbying that have figured out how to exert more power than voters. It's not as simple as the article says that there's X amount of money for manufacturing and since a lot of that is spent on military goods, it doesn't produce productive goods. Trade agreements, treaties, monetary schemes, Wall St, corporate incentives and structures, tax policy,war fighting, regulation, etc have all contributed to hollowing out our economy and all of this is driven by powerful interests.
So...what are those powerful interests? The things/people mentioned in this article have something in common:
McCaffrey is CFR. NBC/NYT heavily represented in CFR. Military industrial companies heavily represented in CFR. Cheney and Bush's military/state/economic/security infrastructure - CFR. Obama's entire military/state/economic/security infrastructure is CFR. Even Fulbright was CFR and many fulbright scholars become CFR.
What pattern do you see? :) CFR is the most powerful financial/lobbying influence in the world. It's even become to a large degree the official government...the elected guys might not be CFR, but their staffs and the federal bureaucracies are. According to its marketing, it's a group of benevolent folks who just want world peace. In reality it's a policy arm of Wall St and the elite commercial banks, with the Rockefeller dynasty at the top (the family which profits most from the ability to create money for our government--the Fed). They bring important people from other industries/govt/military/media/etc into the group. Most of the people in the group that aren't financiers think they're doing good work. The Wall St interests think they're just making money...it's an amazingly powerful group in terms of generating revenue for capital holders and banks. They're not evil, just victims of groupthink that results from a common profit purpose. The people at the top, however, may be evil...see "confessions of an economic hit man" for a 1st-hand account of how banking/financial interests drive world empire and when standard lobbying or financial strong-arming doesn't work they engage in warfighting, assassination, etc. Permanent war mentality is VERY profitable to capital holders and banks...all the important ones are in CFR.
For Meme Day, I was going to write about the link between permanent war and national decline. But Seedy 566 has ably beat me to it. Good!
Speaking of memes, one that appeared in the press last week was 'dollar crisis.' The U.K.'s AAA rating was said to be at risk; Bill Gross said the U.S. would lose its AAA rating some day; and whammo - gravity lessons for the dollar!
I seem to recall Dr. Martenson saying last year that dollar weakness coupled with rising interest rates (exactly what was happening last week) would be a warning. In what might be called linear, Newtonian economics, higher interest rates are supposed to make a currency more attractive. But in the weird singularity at the cusp of depression, raising rates only accelerates a weak economy's downward spiral, increasing both default risk and the pressure to devalue.
Even overnight rates of 100 percent annualized (which can happen in the last desperate days before a devaluation) amount to only 30 cents per 100 dollars, on a daily basis. Yet you can lose 100 times that much if a 30 percent devaluation occurs the next day. As George Soros demonstrated by 'breaking the Bank of England' in 1992, it can actually pay to borrow at ruinous double-digit rates to short a currency. Because double-digit rates will quickly break the back of a fading economy, and the currency's external value will snap in response.
Permanent war, as explained in the Chris Hedges article above, induces national decline via systematic malinvestment. War expenditures are not investment; they are almost pure consumption. Even worse, foreign wars dump printed dollars overseas, directly increasing the unwanted surplus. The Vietnam War broke the dollar's last link to gold. The Iraq/Afghanistan wars are now destroying the dollar's reserve currency status.
During the 68 years of permanent war since 1941, the U.S. has run a handful of 'cash basis' budget surpluses. However, on an accrual basis -- the only accurate accounting for entities with long-lived assets and liabilities -- the U.S. has not run a surplus since the Coolidge administration in the 1920s. The apparent surpluses in 1999 and 2000, for instance, occurred only because Social Security and Medicare cash surpluses were counted as revenue, when in fact on an accrual basis, those programs are running in deep annual deficit, with massive accumulated shortfalls in reserves.
Third-grade arithmetic demonstrates that the U.S. will never again balance its budget unless it closes its vast worldwide military empire and retreats to within its own borders. Yet just last week, Barack Dubya Obama promised a U.S. Naval Academy class that the U.S. will maintain its worldwide 'dominance.' Meet the new boss -- same as the old boss.
Unfortunately, like the U.K. before it, the U.S. is not going to forfeit its empire until national bankruptcy forces it to. Last night at a rock concert, the lead singer announced, 'We have a beautiful dream in this country. Let's thank the armed forces for spreading that dream around the world.' And EVERYBODY CLAPPED (except my wife and me, looking at each other in horrified astonishment).
So, attend them flag-waving festivities today if you want. Just remember -- that's no parade. It's a funeral cortege for America and its bankrupt, militarized dream. And the wheelbarrow loads of crudely-printed, unredeemable confetti currency which 'finance' it -- for now.
Peak Population and Resources will meet one day thanks to our monetary system. I fear for the worst.
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