Tuesday, November 27, 2007

"Astonishing" vs. "Barbaric"

I started writing this entry before the news broke today about Abu Dhabi's investment in Citi. The purchase of the stake underscores as nothing else the point I wish to make below. Please read on. (There are two posts today).
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The difference in diplomatic nuance between the two words in the title is the full a measure of how dependent on imported oil and petrodollars the United States has finally become.

First the details, from a BBC story:

A recently married 19-year old Saudi Arabian woman and a male friend were in a car together when they were abducted, driven to a secluded area and gang raped - both of them - by a number of men. The Saudi court that decided the case found the victims guilty of being in a car together without being relatives and sentenced them to 90 lashes. When their case drew media attention, the appeals court raised the sentence to 200 lashes. The victims were deemed guilty of untoward behavior in publicizing their plight with the media.

The Canadian government issued an official statement describing the sentence as "barbaric". The United States, that beacon of freedom, liberty and a constant champion of human rights everywhere in the world, declined to comment specifically on the sentence, but did call the case "astonishing".

The Saudi "justice" ministry issued a statement that rejected foreign interference, insisted that the ruling was legal and said the sentence would be carried out in accordance to Saudi "law".

Are we "astonished"? And if so, at what?

The Canadians, being net oil exporters and fiscally responsible,
can afford to call the Saudis for what they are: "barbarians". The Americans, who have to scrape and bow to the oil sheiks for their oil and money, are merely "astonished".

I will refrain from drawing parallels to history's other barbarians which the United States fought and subdued at terrible human and material cost. After all, they were enemy barbarians. Bad barbarians. The Saudis are, of course, different: they are our allies. Friendly barbarians. Our barbarians.

Message to the US government and all others concerned: For Heaven's sake, wake up and get rid of our oil dependence. Don't you see that if this horde of barbarians is capable of such atrocity towards its own people, it will not even flinch at using their oil power to dominate and dictate terms to our society?

What are you waiting for? Kristallnacht?

Original post for the day follows below. Please keep reading if you feel like it, and watch the Monty Python clip linked at the end.

22 comments:

  1. Your post reminds of a piece I read yesterday, about "The End of America" by Naomi Wolf.

    http://www.guardian.co.uk/usa/story/0,,2064157,00.html

    Jay

    ReplyDelete
  2. I don't disagree with the premise of your post, but, without making a leap, I am not sure how:

    "The purchase of the stake underscores as nothing else the point I wish to make below."

    From China to Russia to the Middle East, or anywhere in Southeast Asia, Wall Street has shown itself to be nothing other than a cheap prostitute willing to get in bed with any corrupt or inhumane government that has money hanging out of its wallet.

    You seem so well read, here is something I was wondering. Has anyone ever really mapped out the diplomatic logistics of breaking our oil link with the House of Saud? I mean FDR set that up, even through the embargo days it stood, and now it is just as strong as ever thanks to the Bush family. It is like an untouchable covenant. I don't think it would be as easy as just creating alternative energy and then thumbing your nose at the Arabs.

    ReplyDelete
  3. Thanks for that Naomi Wolf article Jay. I won't sleep for months, years maybe.

    ReplyDelete
  4. You used the word 'barbaric'. Maybe so, but the Wahhabi Sunni would violently disagree and would slaughter you on the spot. You have been warned. No prisoners shall be taken. No quarter shall be given. Their year is 1385 AH.

    Read up on the history of the Christian Church around 1385 AD and the fate of the Cathars. Spookily similar behaviour.

    A good, basic account of the Wahhabi has been written recently.

    God's Terrorists: The Wahhabi Cult and the Hidden Roots of Modern Jihad.

    Charles Allen: 2006: Little Brown.
    ISBN(10)0-316-72997-3

    It has an extensive and very useful bibliography.


    ps. Unfortunately - there is another tribe close by whose behaviour toward their neighbours is not exactly setting a good example either.

    Brian Woods

    ReplyDelete
  5. For david, Re: solutions to US-KSA relationship.

    When it comes to energy, unfortunately nothing is "easy". There will be pain involved in re-fashioning our energy regime (lower living standards), but I am convinced the deprivation is not only worth it, it is necessary - if we are to survive with our democracy and environment in decent shape.

    Thank you for considering me well read. I confess that I read all the time... I started at age 5 and haven't stopped yet (smile).

    I HIGHLY recommend Klare's "Resource Wars" for a discussion on oil, plus water and other resources(see the Amazon sidebar on the blog).

    Regards

    ReplyDelete
  6. Brian Woods,
    You fail to mention something called the Reformation, which changed Christianity. Islam has yet to reform, and in many cases, is becoming increasingly barbaric.

    ReplyDelete
  7. Why is Condoleeza Rice kissing the Saudis asses to get them to attend the Annapolis conference? Saudi Arabia and Iran are the world's primary exporters of Islamic terrorism, yet we invade Iraq and Afghanistan. Crazy. But not so crazy if you realize many of our former Secretaries of State like Henry Kissinger and James Baker are on the Saudi payroll. Jimmy Carter is on the Saudi payroll. Pat Buchanan just wrote a book on the theme of the end of America. Have a nice day.

    ReplyDelete
  8. If you are sure that the Saudis pay Mrs Rice something, please inform the IRS.

    ReplyDelete
  9. Re: Islam/Reformation/Wahhabism

    Wahhabism is not about religion, but about controlling the populace - exactly like the Inquisition.

    Islam, as a religion, does not really need reformation of its basic ideas and principles. Anyone who has been to Andalucia in Spain and seen the marvels of Alhambra, Cordoba and Seville will recognize that Muslim Arab culture was capable of exceptional feats.

    What today's oil Arabs suffer from is Dutch Disease (pls. look it up in Wikipedia) within a Bedouin society based on nomadic principles.

    Again, religion is NOT the issue. The invocation of God, ANY God, to justify flogging someone 200 times is an abomination.

    ReplyDelete
  10. Bad things always happen when you deal with a cult. They are the "borgs" of Star Trek fame. Comply or die!

    ReplyDelete
  11. This comment has been removed by the author.

    ReplyDelete
  12. Another excellent post Hellasious! Thanks for awakening consciousness.

    BTW here's the video presentation of the Naomi Wolf book "The End of America" that was refered to before http://1984comic.com/node/922 Eye-opening to say the least.

    ReplyDelete
  13. By the way, thank you for referring to Naomi Wolf's book. I just ordered it.

    Regards

    ReplyDelete
  14. Speaking of reading, this is worth a look:
    "House of Bush, House of Saud : The Secret Relationship Between the World's Two Most Powerful Dynasties"
    by Craig Unger

    ReplyDelete
  15. Running massive inflationary policies which enrich our enemies has to be the dumbest idea on earth. No one should be shocked if there is a huge event. We spent 50 years killing the USSR and now Russia is back at its old games again. Do we want oil or to we want to die? Bring down energy use should be priority number one

    ReplyDelete
  16. I watched this TV 'drama' in 1980.

    'Death of a Princess'

    - a British journalist investigates the public execution of an Arab princess for adultery. Questioning her motives leads to considerations of the social pressures operating in the Arab world. The reaction of HMG at the time was 'slug-like'. The 'lads' in The Kingdom threatened to cancel a massive arms deal!

    There is a report in todays papers about a British teacher in Sudan being arrested and sentenced to 40 lashes because she nicknamed her toy bear after You-Know-Who! [can't print the name].

    Then there was the story of the murder and burning of a teacher and his wife in rural Afganistan by the Taliban because they taught young females to read and write.

    If we wish to rid ourselves of our dependency on these fanatics we have to embark on a massive programme of energy conservation and conversion to renewable sources - regardless of the economic consequences.

    If we do not embark on a steady programme of energy change, a change that can be managed, then an abrupt and violent change will be imposed. Take your choice.

    Check out what Switzerland did at the outset of WWII to ensure they had adequate food and fuel to get by. It was radical.

    We can actually accomplish this energy change. We do have the technological know-how. Problem is, our politicians; craven, feckless and power corrupted.


    Brian Woods

    ReplyDelete
  17. anytime i hear calls to accept 'lower living standards', i think back to the minneapolis fed's 1974 annual report - The Limping Giant: The American Economy 1974-75 - which included such statements as:

    "...it seems inevitable that the task of transforming billions of dollars of oil revenues into productive, repayable loans and investments will continue to place severe strains on existing financial institutions. Not only is the rapid growth of assets and liabilities likely to stretch further the banks' already reduced capital ratios, but it will also be difficult to resist the temptation to widen further the maturity gap between deposits and investments. As has been pointed out elsewhere, recycling, while sounding easy, really comes down to piling debt upon debt, with the institutions in the middle between petro-lenders and consumer-borrowers—whether private, national, or international—taking on substantial added credit risks.
    [...]
    If our current problems are as many-sided, interconnected, and as long in accumulating as the foregoing discussion indicates, then it would be holding out false hope to suggest that there are any easy, simple, or fast-acting remedies. At the same time, we are already late in getting started on a program to deal with our problems, and an integrated approach must begin now.

    Perhaps the greatest temptation (and the most dangerous trap) would be to single out inflation or recession as “the” problem, and then apply the standard treatment. There is a particular risk, given the biases of our political system, that we will concentrate on short-run “cures” for recession, to the detriment of our ability to correct more fundamental weaknesses in our economy.

    If the present recession were simply one more cyclical downturn along an essentially stable economic growth path, then it might be appropriate to try another dose of the medicine we've used in the past—an expansion of federal spending and further easing of monetary policy. But our problems today are intractable partly because:

    we have tried to raise living standards faster than investments in productive facilities could keep pace;

    investments, particularly those financed by equity capital, have lagged as a result of inadequate rates of return on capital; and

    we have substituted credit expansion for savings as the means to finance the growth of consumer and business spending. Another dose of the old medicine would only worsen the disease, in the longer run if not immediately.


    Instead, if this analysis is correct, we are going to have to accept as fact that we cannot continue to expand consumption (i.e., living standards) as rapidly in the next few years as we have during the past decade. ...

    ... If long-nourished expectations of “a better life” (i.e., more goods, services, leisure, etc.) are now going to be frustrated, or at least postponed, as seems inevitable, then there is going to have to be an equitable sharing of the burden of this adjustment.
    "


    ----But how did this "equitable sharing of the burden" work out in practice?----


    "...over the past three decades, [1976-2006] much of the gain from excellent macroeconomic performance has gone to just a small segment of the population—those already in the upper part of the distribution. As a result, inequality has grown. This inequality, coupled with increased turbulence in family incomes associated with job displacement and restructuring, sheds substantial light..."
    (FRBSF Economic Letter; 2006-33-34; December 1, 2006; Economic Inequality in the United States)

    Was the growth in inequality limited to just the U.S.? No, but took place globally on both national and international levels.

    Why? Resource scarcity? No, but it makes a nice excuse for more "equitable sharing' that's not.

    More correctly, we have to take the long-run decline in avg rate of profit (not earnings) and growth into account -- and understand that globalization - neoliberalism, global assembly lines, offshoring, interpenatration of previously more national economies, financialization with its become massive production of fictitious capital, grew in response to a real Long Slowing.

    Rate of nonfinancial profit measured as total profit relative to capital stock, U.S., began falling in 1967 - well before the first oil price shock, by which time this rate had fallen from 21% to 11%.
    Or, if taking total profit as a share of national income approach, we find nearly the same, with the after-tax share of nonfinancial corporations falling from 10% in 1965 to 5% in 1971, (Moseley, The Imperiled Economy, In. Alfredo Saad-Filho, ed., 2003 and
    Duca, Has Long-Run Profitability Risen In the 1990s?, Dallas FRB, 1997 -- many others indicate the same and continued weakness relative to 1950s-most of 1960s. By share, though, there has been some rise over last years but this has most to do with increased intensity of exploitation of labor)

    So, what about Growth?

    The most widely cited data on global growth rates was compiled in 1995 by Angus Maddison for the Organization for Economic Cooperation. He reports that

    while annual real GDP growth in the world economy averaged 4.9% from 1950 to 1973, it slowed to 3.0% in 1973-92.

    Western European growth rates fell from 4.7% in the early period to 2.2% in the latter.

    Latin America's growth averaged 5.3% from 1950-73, but only 2.8% from 1973-92.

    Africa grew at a 4.4% pace in the first period, but at a 2.8% rate in the second one.

    Asia was also the only major area not to experience a significant post Golden Age slowdown, maintaining growth between 5% and 6% for the entire era.

    We get the same results if we focus on the 1990s.

    World GDP growth averaged but 2.2% from 1990-98, the slowest growth of the post war era. Developed nations had an average GDP growth rate of only 2.1% from 1991-98.

    Latin America growth averaged 3.2% from 1990-97, better than in the “lost decade” of the 1980s, but much lower than in the 1950-73 period.

    Africa showed GDP growth of only 1% a year from 1990-97.

    Asian economies grew by 6.5% from 1990-96, prior to the outbreak of financial crisis in that region.

    Other performance indicators, such as average unemployment and productivity growth rates, show the same pattern.

    US GDP growth averaged 4.2% a year from 1959-73, but only 2.6% in the Neoliberal years from 1980-98. From 1990-98, growth was only 2.5% per year. Annual growth in labor productivity fell from 3.2% from 1959-73, to under 1.3% from 1980-98; it was 1.4% in the nineties.
    And the average US unemployment rate, which was 4.8% from 1950-1973, rose to 6.6% in 1980-98.

    [-Angus Maddison, Monitoring the World Economy 1820-1992 (Paris: OECD, 1995), p.60.
    -World Development Indicators 1999 (Washington, DC: World Bank, 1999), p. 4.
    -United Nations Conference on Trade and Development, Trade and Development Report (New York: United Nations), various issues.
    -Council of Economic Advisers, Economic Report of the
    President (Washington: United States Government Printing Office, 1999)}

    ReplyDelete
  18. Sorry for the very long post but think context can be helpful.
    Forgot to note that the Growth segment derives from U Mass' James Crotty's 2000 paper re. capital controls. I would venture that officially higher rates of global growth over the last few years has been less real then an artifact of unsustainably massive credit inflation.

    "Barbaric" - very certainly, but there's so much more to it than oil, which is to say that we're talking of systemic and global problems or, in perhaps overly strong language, inherent - not exogenous - limits to the capital system.

    ReplyDelete
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