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Friday, November 30^th, 2007

Volume 6, No. 21

(Editor's Note: I'm sorry that this issue has run so long, but the times call for as much information as possible. Article No. 1 is cited often.)

4 Articles 26 Pages

1. Venezuela: Between Ballots and Bullets

2. Coup D'etat Rumblings in Venezuela

3. No Remembrance, No Remorse For the Fallen of Iraq

4. American Road Leads Off A Cliff

1. VENEZUELA: BETWEEN BALLOTS AND BULLETS

BY

JAMES PETRAS

Introduction:

Venezuela’s democratically elected Present Chavez faces the most serious threat since the April 11, 2002 military coup.

Violent street demonstrations by privileged middle and upper middle class university students have led to major street battles in and around the center of Caracas. More seriously, the former Minister of Defense, General Raul Isaias Baduel, who resigned in July, has made explicit calls for a military coup in a November 5^th press conference which he convoked exclusively for the right and far-right mass media and political parties, while striking a posture as an ‘individual’ dissident.

The entire international and local private mass media has played up Baduel’s speeches, press conferences along with fabricated accounts of the oppositionist student rampages, presenting them as peaceful protests for democratic rights against the government referendum scheduled for December 2, 2007.

The New York Times, the Wall Street Journal, the BBC News and the Washington Post have all primed their readers for years with stories of President Chavez’ ‘authoritarianism’. Faced with constitutional reforms which strengthen the prospects for far-reaching political-social democratization, the US, European and Latin American media have cast pro-coup ex-military officials as ‘democratic dissidents’, former Chavez supporters disillusioned with his resort to ‘dictatorial’ powers in the run-up to and beyond the December 2, 2007 vote in the referendum on constitutional reform. Not a single major newspaper has mentioned the democratic core of the proposed reforms – the devolution of public spending and decision to local neighborhood and community councils. Once again as in Chile in 1973, the US mass media is complicit in an attempt to destroy a Latin American democracy.

Even sectors of the center-left press and parties in Latin America have reproduced right-wing propaganda. On November the self-styled ‘leftist’ Mexican daily La Jornada headline read ‘Administrators and Students from the Central University of Venezuela (UCV) Accuse Chavez of Promoting Violence’. The article then proceeded to repeat the rightist fabrications about electoral polls, which supposedly showed the constitutional amendments facing defeat.

The United States Government, both the Republican White House and the Democrat-controlled Congress are once again overtly backing the new attempt to oust the popular-nationalist President Chavez and to defeat the highly progressive constitutional amendments.

The Referendum: Defining and Deepening the Social Transformation

The point of confrontation is the forthcoming referendum on constitutional reforms initiated by President Chavez, debated, amended and democratically voted on by the Venezuelan Congress over the past 6 months. There was widespread and open debate and criticism of specific sectors of the Constitution. The private mass media, overwhelmingly viscerally anti-Chavez and pro-White House, unanimously condemned any and all the constitutional amendments. A sector of the leadership of one of the components of the pro-Chavez coalition (PODEMOS) joined the Catholic Church hierarchy, the leading business and cattleman’s association, bankers and sectors of the university and student elite to attack the proposed constitutional reforms. Exploiting to the hilt all of Venezuela’s democratic freedoms (speech, assembly and press) the opposition has denigrated the referendum as ‘authoritarian’ even as most sectors of the opposition coalition attempted to arouse the military to intervene.

The opposition coalition of the rich and privileged fear the constitutional reforms because they will have to grant a greater share of their profits to the working class, lose their monopoly over market transactions to publicly owned firms, and see political power evolve toward local community councils and the executive branch. While the rightist and liberal media in Venezuela, Europe and the US have fabricated lurid charges about the ‘authoritarian’ reforms, in fact the amendments propose to deepen and extend social democracy.

A brief survey of the key constitutional amendments openly debated and approved by a majority of freely elected Venezuelan congress members gives the lie to charges of ‘authoritarianism’ by its critics. The amendments can be grouped according to political, economic and social changes.

The most important political change is the creation of new locally based democratic forms of political representation in which elected community and communal institutions will be allocated state revenues rather than the corrupt, patronage-infested municipal and state governments. This change toward decentralization will encourage a greater practice of direct democracy in contrast to the oligarchic tendencies embedded in the current centralized representative system.

Secondly, contrary to the fabrications of ex-General Baduel, the amendments do not ‘destroy the existing constitution’, since the amendments modify in greater or lesser degree only 20% of the articles of the constitution (69 out of 350).

The amendments providing for unlimited term elections is in line with the practices of many parliamentary systems, as witnessed by the five terms in office of Australian Prime Minister Howard, the half century rule of Japan’s Liberal Democratic Party, the four terms of US President Franklin Roosevelt, the multi-term election of Margaret Thatcher and Tony Blair in the UK among others. No one ever questions their democratic credentials for multi-term executive office holding, nor should current critics selectively label Chavez as an ‘authoritarian’ for doing the same.

Political change increasing the presidential term of office from 6 to 7 years will neither increase or decrease presidential powers, as the opposition claims, because the separation of legislative, judicial and executive powers will continue and free elections will subject the President to periodic citizen review.

The key point of indefinite elections is that they are free elections, subject to voter preference, in which, in the case of Venezuela, the vast majority of the mass media, Catholic hierarchy, US-funded NGO’s, big business associations will still wield enormous financial resources to finance opposition activity – hardly an ‘authoritarian’ context.

The amendment allowing the executive to declare a state of emergency and intervene in the media in the face of violent activity to overthrow the constitution is essential for safeguarding democratic institutions. In light of several authoritarian violent attempts to seize power recently by the current opposition, the amendment allows dissent but also allows democracy to defend itself against the enemies of freedom. In the lead up to the US-backed military coup of April 11, 2002, and the petroleum lockout by its senior executives which devastated the economy (a decline of 30% of GNP in 2002/2003), if the Government had possessed and utilized emergency powers, Congress and the Judiciary, the electoral process and the living standards of the Venezuelan people would have been better protected. Most notably, the Government could have intervened against the mass media aiding and abetting the violent overthrow of the democratic process, like any other democratic government. It should be clear that the amendment allowing for ‘emergency powers’ has a specific context and reflects concrete experiences: the current opposition parties, business federations and church hierarchies have a violent, anti-democratic history. The destabilization campaign against the current referendum and the appeals for military intervention most prominently and explicitly stated by retired General Baduel (defended by his notorious adviser-apologist, the academic-adventurer Heinz Dietrich), are a clear indication that emergency powers are absolutely necessary to send a clear message that reactionary violence will be met by the full force of the law.

The reduction of voting age from 18 to 16 will broaden the electorate, increase the number of participants in the electoral process and give young people a greater say in national politics through institutional channels. Since many workers enter the labor market at a young age and in some cases start families earlier, this amendment allows young workers to press their specific demands on employment and contingent labor contracts.

The amendment reducing the workday to 6 hours is vehemently opposed by the opposition led by the big business federation, FEDECAMARAS, but has the overwhelming support of the trade unions and workers from all sectors. It will allow for greater family time, sports, education, skill training, political education and social participation, as well as membership in the newly formed community councils. Related labor legislation and changes in property rights including a greater role for collective ownership will strengthen labor’s bargaining power with capital, extending democracy to the workplace.

Finally the amendment eliminating so-called ‘Central Bank autonomy’ means that elected officials responsive to the voters will replace Central Bankers (frequently responsive to private bankers, overseas investors and international financial officials) in deciding public spending and monetary policy. One major consequence will be the reduction of excess reserves in devalued dollar denominated funds and an increase in financing for social and productive activity, a diversity of currency holdings and a reduction in irrational foreign borrowing and indebtedness. The fact of the matter is that the Central Bank was not ‘autonomous’, it was dependent on what the financial markets demanded, independent of the priorities of elected officials responding to popular needs.

As the Chavez Government Turns to Democratic Socialism: Centrists Defect and Seek Military Solutions

As Venezuela’s moves from political to social transformation, from a capitalist welfare state toward democratic socialism, predictable defections and additions occur. As in most other historical experiences of social transformation, sectors of the original government coalition committed to formal institutional political changes defect when the political process moves toward greater egalitarianism and property and a power shift to the populace. Ideologues of the ‘Center’ regret the ‘breaking’ of the status quo ‘consensus’ between oligarchs and people (labeling the new social alignments as ‘authoritarian’) even as the ‘Center’ embraces the profoundly anti-democratic Right and appeals for military intervention.

A similar process of elite defections and increased mass support is occurring in Venezuela as the referendum, with its clear class choices, comes to the fore. Lacking confidence in their ability to defeat the constitutional amendments through the ballot, fearful of the democratic majority, resentful of the immense popular appeal of the democratically elected President Chavez, the ‘Center’ has joined the Right in a last ditch effort to unify extra-parliamentary forces to defeat the will of the electorate.

Emblematic of the New Right and the ‘Centrist’ defections is the ex-Minister of Defense, Raul Baduel, whose virulent attack on the President, the Congress, the electoral procedures and the referendum mark him as an aspirant to head up a US-backed right-wing seizure of power.

The liberal and right wing mass media and unscrupulous ‘centrist’ propagandists have falsely portrayed Raul Baduel as the ‘savior’ of Chavez following the military coup of April 2002. The fact of the matter is that Baduel intervened only after hundreds of thousands of poor Venezuelans poured down from the ‘ranchos’, surrounded the Presidential Palace, leading to division in the armed forces. Baduel rejected the minority of rightist military officers favoring a massive bloodbath and aligned with other military officials who opposed extreme measures against the people and the destruction of the established political order. The latter group included officials who supported Chavez’ nationalist-populist policies and others, like Baduel, who opposed the coup-makers because it radicalized and polarized society – leading to a possible class-based civil war with uncertain outcome. Baduel was for the restoration of a ‘chastised’ Chavez who would maintain the existing socio-economic status quo.

Within the Chavez government, Baduel represented the anti-communist tendency, which pressed the President to ‘reconcile’ with the ‘moderate democratic’ right and big business. Domestically, Baduel opposed the extension of public ownership and internationally favored close collaboration with the far-right Colombian Defense Ministry.

Baduel’s term of office as Defense Minister reflected his conservative propensities and his lack of competence in matters of security, especially with regard to internal security. He failed to protect Venezuela’s frontiers from military incursions by Colombia’s armed forces. Worse he failed to challenge Colombia’s flagrant violation of international norms with regard to political exiles. While Baduel was Minister of Defense, Venezuelan landlords’ armed paramilitary groups assassinated over 150 peasants active in land reform while the National Guard looked the other way. Under Baduel’s watch over 120 Colombian paramilitary forces infiltrated the country. The Colombian military frequently crossed the Venezuelan border to attack Colombian refugees. Under Baduel, Venezuelan military officials collaborated in the kidnapping of Rodrigo Granda (a foreign affairs emissary of the FARC) in broad daylight in the center of Caracas. Baduel made no effort to investigate or protest this gross violation of Venezuelan sovereignty, until President Chavez was informed and intervened. Throughout Baduel’s term as Minister of Defense he developed strong ties to Colombia’s military intelligence (closely monitored by US Defense Intelligence Agency and the CIA) and extradited several guerrillas from both the ELN and the FARC to the hands of Colombian torturers.

At the time of his retirement as Minister of Defense, Baduel made a July 2007 speech in which he clearly targeted the leftist and Marxist currents in the trade union (UNT) and Chavez newly announced PSUV (The Unified Socialist Party of Venezuela). His speech, in the name of ‘Christian socialist’, was in reality a vituperative and ill-tempered anti-communist diatribe, which pleased Pope Benedict (Ratzinger).

Baduel’s November 5 speech however marks his public adherence to the hard-line opposition, its rhetoric, fabrications and visions of an authoritarian reversal of Chavez program of democratic socialism. First and foremost, Baduel, following the lead of the White House and the Venezuelan ‘hard right’, denounced the entire process of Congressional debate on the Constitutional amendments, and open electoral campaigning leading up to the referendum as ‘in effect a coup d’etat’. Every expert and outside observer disagreed – even those opposed to the referendum. Baduel’s purpose however was to question the legitimacy of the entire political process in order to justify his call for military intervention. His rhetoric calling the congressional debate and vote a ‘fraud’ and ‘fraudulent procedures’ point to Baduel’s effort to denigrate existing representative institutions in order to justify a military coup, which would dismantle them.

Baduel’s denial of political intent is laughable – since he only invited opposition media and politicians to his ‘press conference’ and was accompanied by several military officials. Baduel resembles the dictator who accuses the victim of the crimes he is about to commit. In calling the referendum on constitutional reform a ‘coup’, he incites the military to launch a coup. In an open appeal for military action he directs the military to ‘reflect of the context of constitutional reform.’ He repeatedly calls on military officials to ‘assess carefully’ the changes the elected government has proposed ‘in a hasty manner and through fraudulent procedures’. While denigrating democratically elected institutions, Baduel resorts to vulgar flattery and false modesty to induce the military to revolt. While immodestly denying that he could act as spokesperson for the Armed Forces, he advised the rightist reporters present and potential military cohort that ‘you cannot underrate the capacity of analysis and reasoning of the military.’

Cant, hypocrisy and disinterested posturing run through Baduel’s pronouncements. His claim of being an ‘apolitical’ critic is belied by his intention to go on a nationwide speaking tour attacking the constitutional reforms, in meetings organized by the rightwing opposition. There is absolutely no doubt that he will not only be addressing civilian audiences but will make every effort to meet with active military officers who he might convince to ‘reflect’…and plot the overthrow of the government and reverse the results of the referendum. President Chavez has every right to condemn Baduel as a traitor, though given his long-term hostility to egalitarian social transformation it may be more to the point to say that Baduel is now revealing his true colors.

The danger to Venezuelan democracy is not in Baduel as an individual – he is out of the government and retired from active military command. The real danger is his effort to arouse the active military officers with command of troops, to answer his call to action or as he cleverly puts it ‘for the military to reflect on the context of the constitutional reforms.’ Baduel’s analysis and action program places the military as the centerpiece of politics, supreme over the 16 million voters.

His vehement defense of ‘private property’ in line with his call for military action is a clever tactic to unite the Generals, Bankers and the middle class in the infamous footsteps of Augusto Pinochet, the bloody Chilean tyrant.

The class polarization in the run-up to the referendum has reached its most acute expression: the remains of the multi-class coalition embracing a minority of the middle class and the great majority of the working power is disintegrating. Millions of previously apathetic or apolitical young workers, unemployed poor and low-income women (domestic workers, laundresses, single parents) are joining the huge popular demonstrations overflowing the main avenues and plazas in favor of the constitutional amendments. At the same time political defections have increased among the centrist-liberal minority in the Chavez coalition. Fourteen deputies in the National Assembly, less than 10%, mostly from PODEMOS, have joined the opposition. Reliable sources in Venezuela (Axis of Logic/Les Blough Nov. 11, 2007) report that Attorney General Beneral Isaias Rodriguez, a particularly incompetent crime fighter, and the Comptroller General Cloudosbaldo Russian are purportedly resigning and joining the opposition. More seriously, these same reports claim that the 4^th Armed Division in Marcay is loyal to ‘Golpista’ Raul Baduel. Some suspect Baduel is using his long-term personal ties with the current Minister of Defense, Gustavo Briceno Rangel to convince him to defect and join in the pre-coup preparations. Large sums of US funding is flowing in to pay off state and local officials in cash and in promises to share in the oil booty if Chavez is ousted. The latest US political buy-out includes Governor Luis Felipe Acosta Carliz from the state of Carabobo. The mass media have repeatedly featured these new defectors to the right in their hourly ‘news reports’ highlighting their break with Chavez ‘coup d’etat’.

The referendum is turning into an unusually virulent case of a ‘class against class’ war, in which the entire future of the Latin American left is at stake as well as Washington’s hold on its biggest oil supplier.

Conclusion

Venezuelan democracy, the Presidency of Hugo Chavez and the great majority of the popular classes face a mortal threat. The US is facing repeated electoral defeats and is incapable of large-scale external intervention because of over-extension of its military forces in the Middle East; it is committed once more to a violent overthrow of Chavez. Venezuela through the constitutional reforms, will broaden and deepen popular democratic control over socio-economic policy. New economic sectors will be nationalized. Greater public investments and social programs will take off. Venezuela is moving inexorably toward diversifying its petrol markets, currency reserves and its political alliances. Time is running out for the White House: Washington’s political levers of influence are weakening. Baduel is seen as the one best hope of igniting a military seizure, restoring the oligarchs to power and decimating the mass popular movements.

President Chavez is correctly ‘evaluating the high command’ and states that he ‘has full confidence in the national armed forces and their components.’ Yet the best guarantee is to strike hard and fast, precisely against Baduel’s followers and cohorts. Rounding up a few dozen or hundred military plotters is a cheap price to pay for saving the lives of thousands of workers and activists who would be massacred in any bloody seizure of power.

History has repeatedly taught that when you put social democracy, egalitarianism and popular power at the top of the political agenda, as Chavez has done, and as the vast majority of the populace enthusiastically responds, the Right, the reactionary military, the ‘Centrist’ political defectors and ideologues, the White House, the hysterical middle classes and the Church cardinals will sacrifice any and all democratic freedoms to defend their property, privileges and power by whatever means and at whatever cost necessary. In the current all-pervasive confrontation between the popular classes of Venezuela and their oligarchic and military enemies, only by morally, politically and organizationally arming the people can the continuity of the democratic process of social transformation be guaranteed.

Change will come, the question is whether it will be through the ballot or the bullet.

Back to Top

2. COUP D'ETAT RUMBLINGS IN VENEZUELA
BY

STEPHEN LENDMAN

The Bush administration tried and failed three prior times to oust Hugo Chavez since its first aborted two-day coup attempt in April, 2002. Through FOIA requests, lawyer, activist and author Eva Golinger uncovered top secret CIA documents of US involvement that included an intricate financing scheme involving the quasi-governmental agency, National Endowment of Democracy (NED), and US Agency for International Development (USAID). The documents also showed the White House, State Department and National Security Agency had full knowledge of the scheme, had to have approved it, and there's little doubt of CIA involvement as it's always part of this kind of dirty business. What's worrying now is what went on then may be happening again in what looks like a prelude to a fourth made-in-Washington attempt to oust the Venezuelan leader that must be monitored closely as events develop.

Since he took office in February, 1999, and especially after George Bush's election, Chavez has been a US target, and this time he believes credible sources point to a plot to assassinate him. That information comes from Alimamy Bakarr Sankoh, president of the Hugo Chavez International-Foundation for Peace, Friendship & Solidarity (HCI-FPFS) in a November 11 press release. Sankoh supports Chavez as "a man of peace and flamboyant champion of human dignity (who persists in his efforts in spite of) growing US blackmail, sabotage and political blasphemy."

HCI-FPFS sources revealed the plot's code name - "Operation Cleanse Venezuela" that now may be unfolding ahead of the December 2 referendum on constitutional reforms. According to Sankoh, the scheme sounds familiar - CIA and other foreign secret service operatives (including anti-Castro terrorists) aiming to destabilize the Chavez government by using "at least three concrete subversive plans" to destroy the country's social democracy and kill Chavez.

It involves infiltrating subversive elements into the country, inciting opposition within the military, ordering region-based US forces to shoot down any aircraft used by Chavez, employing trained snipers with shoot to kill orders, and having the dominant US and Venezuelan media act as supportive attack dogs. Chavez is targeted because he represents the greatest of all threats to US hegemony in the region - a good example that's spreading. Venezuela also has Latin America's largest proved oil reserves at a time supplies are tight and prices are at all-time highs.

Sankoh calls Washington-directed threats "real" and to "be treated seriously" to avoid extending Bush's Middle East adventurism to Latin America. He calls for support from the region and world community to denounce the scheme and help stop another Bush administration regime change attempt.

More information on a possible coup plot also came from a November 13 Party for Socialism and Liberation article headlined "New US plots against the Venezuelan Revolution." It states Tribuna Popular (the Communist Party of Venezuela) and Prensa Latina (the Latin American News Agency) reported: "Between Oct. 7 and Oct 9, high-ranking US officials met in Prague, Czech Republic, with parts of the Venezuelan opposition (where they were) urged to convene social uprisings, sabotage the economy and infrastructure, destroy the food transportation chain and plan a military coup." It said Paul Wolfowitz and Madeleine Albright attended along with Humberto Celli, "a well-known coup-plotter from the Venezuelan party Accion Democratica."

The article further reported Tibisay Lucena, The National Electoral Council chairman, said the Venezuelan corporate media was "stoking a mood of violence amongst right-wing students" through a campaign of agitprop, and Hermann Escarra from the "pro-coup" Comando Nacional de la Resistencia openly incited "rebellion" last August and then called for constitutional changes to be stopped "through all means possible."

The Venezuelan news agency, Diaria VEA, also weighed in saying "anonymous students planned on committing acts of destabilization" as the December 2 vote approaches. Venezuelan Radio Trans Mundial provided proof with a recorded video of a youth dumping gasoline into an armored vehicle, ramming metal barricades into police on top of other vehicles, and knocking them from their roofs and hoods onto the ground.

The Threat of Street Protest Violence

For weeks, protests with sporadic violence have been on Venezuela's streets as anti-Chavistas use middle and upper class students as imperial tools to destabilize the government and disrupt the constitutional process. The aim is to discredit and oust the Chavez government and return the country to its ugly past with Washington and local oligarchs in charge and the neoliberal model reinstated.

Venezuela's Foreign Minister, Nicolas Maduro, weighed in on this on November 8. He accused Washington of meddling by staging violent Caracas street protests against proposed constitutional reforms to extend the country's participatory social democracy. Referring to a November 7 shootout at Caracas' Central University, he said: "We don't have any doubt that the government of the United States has their hands in the scheme that led to the ambush yesterday" that Chavez calls a "fascist offensive." Several students were wounded on the streets from a clash between pro and anti-Chavez elements.

"We know the whole scheme," Maduro added, and he should as it happened before in 2002, again during the disruptive 2002-03 oil management lockout, and most often as well when elections are held to disrupt the democratic process. These are standard CIA operating tactics used many times before for 50 years in the Agency's efforts to topple independent leaders and kill them. Chavez understands what's happening, and he's well briefed and alerted by his ally, Fidel Castro, who survived over 600 US attempts to kill him since 1959. He's now 81 and very much alive but going through a difficult recovery from major surgery 15 months ago.

Chavez has widespread popular support throughout the region and from allies like Ecuador's Raphael Correa and Nicaraguan President Daniel Ortega who expressed his "solidarity with the revolutionary people of Venezuela and our friend Hugo Chavez, who is being subjected to aggression from a counterrevolution fed by the traitors from inside the country and by the empire (referring to the US)." He compared the situation to his own country where similar efforts are being "financed by the United States Embassy" in Managua to support elements opposed to his Sandinista government even though it's very accommodative to Washington.

Even Brazil's Lula chimed in by calling Chavez's proposed reforms consistent with Venezuela's democratic norms, and he added: "Please, invent anything to criticize Chavez, except for lack of democracy."

Constitutional Reform As A Pretext for Protests

Washington's goal from all this is clear, but why now? Last July, Chavez announced he'd be sending Venezuela's National Assembly (AN) a proposed list of constitutional reforms to debate, consider and vote on. Under Venezuelan law, the President, National Assembly or 15% of registered voters (by petition) may propose constitutional changes. Under articles 342, 343, 344 and 345, they must then be debated three times in the legislature, amended if needed, and then submitted to a vote that requires a two-thirds majority to pass. Finally within 30 days, the public gets the last word, up or down, in a national referendum. It represents the true spirit of democracy that's unimaginable in the US where elitists control everything, elections are a sham, and the people have no say.

That was true for Venezuela earlier, but no longer. In its history, there have been 26 Constitutions since its first in 1821, but none like the 1999 Bolivarian one under Chavez that's worlds apart from the others. It created a model participatory social democracy that gave all citizens the right to vote it up or down by national referendum and then empowered them (or the government) later on to petition for change.

On August 15, Chavez did that by submitting 33 suggested amendment reforms to the Constitution's 350 articles and explained it this way: The 1999 Constitution needed updating because it's "ambiguous (and) a product of that moment. The world (today) is very different from (then). (Reforms are) essential for continuing the process of revolutionary transition" to deepen and broaden Venezuelan democracy. That's his central aim - to create a "new geometry of power" for the people along with more government accountability to them.

Proposed reforms will have little impact on the nation's fundamental political structure. They will, however, change laws with regard to politics, the economy, property, the military, the national territory as well as the culture and society and will deepen the country's social democracy.

The National Assembly (AN) completed its work on November 2 adding 25 additional articles to Chavez's proposal plus another 11 changes for a total of 69 articles that amend one-fifth of the nation's Constitution. The most important ones include:

-- extending existing constitutional law that guarantees human rights and recognizes the country's social and cultural diversity;

-- building a "social economy" to replace the failed neoliberal Washington Consensus model;

-- officially prohibiting monopolies and unjust consolidation of economic resources;

-- extending presidential terms from six to seven years;

-- allowing unlimited presidential reelections so that option is "the sovereign decision of the constituent people of Venezuela" and is a similar to the political process in countries like England, France, Germany and Australia;

-- strengthening grassroots communal councils, increasing their funding, and promoting more of them;

-- lowering the eligible voting age from 18 to 16;

-- guaranteeing free university education to the highest level;

-- prohibiting foreign funding of elections and political activity;

-- reducing the work week to 36 hours to promote more employment;

-- ending the autonomy of Venezuela's Central Bank to reclaim the country's financial sovereignty the way it should be everywhere; today nearly all central banks are controlled by private for-profit banking cartels; Republican presidential candidate Ron Paul wants to end that status in the US and correctly explains the Federal Reserve Bank is neither federal nor does it have reserves; it's owned and run by Wall Street and the major banks;

-- adding new forms of collective property under five categories: public for the state, social for citizens, collective for people or social groups, mixed for public and private, and private for individuals or private entities;

-- territorial redefinition to distribute resources more equitably to communities instead of being used largely by economic and political elites;

-- prohibiting sexual orientation discrimination and enacting gender parity rights for political candidates;

-- redefining the military as an "anti-imperialist popular entity;"

-- in cases where property is appropriated for the public good, fair and timely compensation to be paid for it;

-- protecting the loss of one's home in cases of bankruptcy; and

-- enacting social security protection for the self-employed.

The National Assembly also approved 15 important transitional dispositions. They relate to how constitutional changes will be implemented if approved until laws are passed to regulate them. One provision is for the legislature to pass 15 so-called "organic laws" that include the following ones:

-- a law on "popular power" to govern grassroots communal councils (that may number 50,000 by year end) that Chavez called "one of the central ideas....to open, at the constitutional level, the roads to accelerate the transfer of power to the people (in an) Explosion of Communal (or popular) Power;" five percent of state revenues will be set aside to fund it;

-- another promoting a socialist economy for the 21st century that Chavez champions even though he remains friendly to business; and

-- one relating to the country's territorial organization; plus others on education, a shorter workweek and more democratic changes.

Under Venezuelan law, and in the true spirit of democracy, these proposed changes will be for citizens to vote up or down on December 2. The process will be in two parts reversing an earlier decision to do it as one package, yea or nay. One part will be Chavez's 33 reforms plus 13 National Assembly additions, and the other for the remaining 23 articles.

Coup D'Etat Rumblings Must Be Taken Seriously

Now battle lines are drawn, opposition forces are mobilized and events are playing out violently on Venezuela's streets. The worst so far was on November 7 when CNN falsely reported "80,000" anti-Chavez students demonstrated "peacefully" in Caracas to denounce "Hugo Chavez's attempts to expand his power." The actual best estimates put it between 2000 and 10,000, and long-time Latin American expert James Petras calls the protesters "privileged middle and upper middle class university students," once again being used as an imperial tool.

In their anti-government zeal, CNN and other dominant media ignore the many pro-Chavez events writer Fred Fuentes calls a "red hurricane" sweeping the country. An impressive one was held on November 4 when the President addressed hundreds of thousands of supporters who participated in an 8.5 kilometer Caracas march while similar pro-reform rallies took place at the same time around the country. They're the start of a "yes" campaign for a large December 2 turnout that's vital as polls show strong pro-reform support by a near two to one margin.

In an effort to defuse it, orchestrated opposition turned violent and officials reported eight people were injured in the November 7 incident. No one was killed, but one was wounded by gunfire when at least "four (masked) gunmen (who looked like provocateur plants, not students) fir(ed) handguns at the anti-Chavez crowd." In an earlier October demonstration, opposition students clashed with police who kept them from reaching the National Assembly building and a direct confrontation with pro-Chavez supporters that might have turned ugly.

It did on November 7 when violence erupted between pro and anti-government students, but it wasn't as reported. Venezuelan and US corporate media claimed pro-Chavez supporters initiated the attack. In fact, they WERE attacked by elements opposing the President. They seized this time to act ahead of the referendum to disrupt it and destabilize the government as prelude to a possible planned coup.

One pro-Chavez student explained what happened. She and others were erecting posters supporting a "yes" referendum vote when they were attacked with tear gas and crowds yelling they were going to be lynched. Avila TV had the evidence. Its unedited footage showed an opposition student mob surrounding the School of Social Work area where pro-Chavez students hid for safety. They threw Molotov cocktails, rocks, chairs and other objects, smashed windows, and tried to burn down the building as university authorities (responsible for security) stood aside doing nothing to curtail the violence. Another report was that corporate-owned Univision operatives posing as reporters had guns and accompanied the elements attacking the school in an overt act of complicity by the media.

The pattern now unfolding on Caracas streets is similar to what happened ahead of the April, 2002 aborted coup attempt, and Petras calls it "the most serious threat (to the President) since" that time. The corporate media then claimed pro-government supporters instigated street violence and fired on "unarmed" opposition protesters. In fact, that was later proved a lie as anti-Chavez "snipers" did the firing as part of the plot that became the coup. A similar scheme may now be unfolding in Caracas and on other campuses around the country as well.

In his public comments, Foreign Minister Maduro accused the major media and CNN of misrepresenting events and poisoning the political atmosphere. It's happening in Venezuela and the US as the dominant media attacks Hugo Chavez through a campaign of vilification and black propaganda.

US Corporate Media on the Attack

On November 12, The Venezuela Information Office (VIO) reported that growing numbers of "US print newspapers lodged attacks against Venezuela" using "outdated cold-war generalizations" and without explaining any of the proposed democratic changes. Among others, they came from the Houston Chronicle that claimed:

-- constitutional reforms will "eliminate the vestiges of democracy" in Venezuela when, in fact, they'll strengthen it, and the people will vote them up or down;

-- Chavez controls the electoral system when, in fact, Venezuela is a model free, fair and open democracy that shames its US equivalent. The Chronicle falsely said reforms will strip people of their right to due process. In fact, that's guaranteed under article 337 that won't be changed.

VIO also reported on a Los Angeles Times editorial comparing Chavez to Bin Laden. It compounded that whopper by claiming reforms will cause a global recession due to higher oil prices that, of course, have nothing to do with changes in law. In another piece, the LA Times inverted the truth by falsely claiming a public majority opposes reforms. Then there's the Miami Herald predicting an end to freedom of expression if changes pass and the Washington Post commenting on how high oil prices let Chavez buy influence.

The Post then ran an inflammatory November 15 editorial headlined "Mr. Chavez's Coup" if which it lied by saying November 7 student protesters "were fired on by gunmen (whom) university officials later 'identified'....as members of government-sponsored 'paramilitary groups' when, in fact, there are no such groups. The editorial went on to say Chavez wants to "complete his transformation into an autocrat (to be able to) seize property....dispose of Venezuela's foreign exchange reserves....impose central government rule on local jurisdictions and declare indefinite states of emergency" as well as suspend due process and freedom of information. Again, misinformation, deliberate distortion and outright lies from a leading quasi-official US house organ.

Rupert Murdock's Wall Street Journal weighed in as well with its lead anti-Chavez attack dog and all-round character assassin extraordinaire, Mary Anastasia O'Grady. This writer has tangled with her several times before and earlier commented how one day she'll have a serious back problem because of her rigid position of genuflection to the most extreme hard-right elements she supports. Her latest November 12 column was vintage O'Grady and headlined "More Trouble for Chavez (as) Students and former allies unite against his latest power grab."

Like most of her others, this one drips with vitriol and outrageous distortions like calling Chavez a "dictator" when, in fact, he's a model democrat, but that's the problem for writers like O'Grady. Absent the facts, they use agitprop instead. O'Grady writes: "Mr. Chavez has been working to remove any counterbalances to his power for almost nine years (and) has met strong resistance from property owners, businesses, labor leaders, the Catholic Church and the media." Now add opposition well-off students. Omitted is that the opposition is a minority, it represents elitist interests, and Chavez has overwhelming public support for his social democracy and proposed reform changes including from most students O'Grady calls "pro-Chavez goons."

Once again, she's on a rampage, but that's her job. She claims the absurd and people believe her - like saying the media will be censored, civil liberties can be suspended, and government will be empowered to seize private property. He's a "demagogue," says O'Grady, waging "class warfare," but opposition to reform "has led to increased speculation (his) days are numbered." Wishing won't make it so, and O'Grady uses that line all the time.

The New York Times is also on the attack in its latest anti-Chavez crusade. It's been a leading Chavez critic for years, and Simon Romero is its man in Caracas. On November 3, he reported "Lawmakers in Venezuela Approve Expanded Power for Chavez (in a) constitutional overhaul (to) enhance (Chavez's) authority, (allow) him to be reelected indefinitely, and (give) him the power to handpick rulers, to be called vice-presidents, (and) for various new regions to be created in the country....The new amendments would facilitate expropriations of private property (and allow state) security forces to round up citizens (stripped of their) legal protections" if Chavez declares a state of emergency - to make him look like Pakistan's Musharraf when he's mirror opposite.

Romero also quoted Jose Manuel Gonzales, president of Venezuela's Fedecamaras (chamber of commerce), saying "Venezuelan democracy was buried today" and anti-Chavez Roman Catholic church leaders (always allied with elitists) calling the changes "morally unacceptable." Then on November 8, Romero followed with an article titled "Gunmen Attack Opponents of Chavez's Bid to Extend Power" and implied they were pro-Chavez supporters. Again false. Still more came on November 10 headlined "Students Emerge as a Leading Force Against Chavez" in an effort to imply most students oppose him when, in fact, these elements are a minority.

His latest so far is on November 17 titled "Chavez's Vision Shares Wealth and Centers Power" that in fairness shows the President addressing a huge crowd of supporters in Maturin on November 16. But Romero spoiled it by calling his vision "centralized, oil-fueled socialism (with) Chavez (having) significantly enhanced powers." Then he quotes Chavez biographer Alberto Barrera Tyszka who embarrassed himself and Romero saying the President is seizing and redirecting "power through legitimate means (and this) is not a dictatorship but something more complex," the 'tyranny' of popularity." In other words, he's saying democracy is "tyranny." The rest of the article is just as bad with alternating subtle and hammer blow attacks against a popular President's aim to deepen his socially democratic agenda and help his people.

Romero's measured tone outclasses O'Grady's crudeness that's pretty standard fare on the Journal's notorious opinion page. He's much more dangerous, however, with a byline in the influential "newspaper of record" because of the important audience it commands.

One other notable anti-Chavez piece is in the November 26 issue of the magazine calling itself "the capitalist tool" - Forbes. It shows in its one-sided commentary and intolerance of opposing views. The article in question, headlined "Latin Sinkholes," is by right wing economist and long-time flack for empire, Steve Hanke. In it, he aims right at Chavez with outrageous comments like calling him a "negative reformer (who) turned back the clock (and) hails Cuba, the largest open-air prison in the Americas, as his model. His revolution's enemy is the marketplace." He then cites a World Bank report saying "Venezuela is tied with Zimbabwe as this year's champion in smothering economic freedom," and compounds that lie with another whopper.

Point of fact - Venezuela and Argentina have the highest growth rates in the region and are near the top of world rankings in recent years. Following the devastating oil management 2002-03 lockout, Venezuela's economy took off and grew at double digit rates in 2004, 05 and 06 and will grow a likely 8% this year. Hanke, however, says "Venezuela's economic performance under Chavez has been anemic (growing) at an average rate of only 2% per year. In the same article, he aims in similar fashion at Ecuador's Raphael Correa calling him "ruthlessly efficient (for wanting to) pull off a Bolivarian Revolution in Ecuador." Hanke and most others in the dominant media are of one mind and never let facts contradict their opinions. Outliers won't be tolerated even when it's proved their way works best.

There's lots more criticism like this throughout the dominant media along with commentators calling Chavez "a dictator, another Hitler (and) a threat to democracy." Ignoring the rules of imperial management has a price. This type media assault is part of it as a prelude for what often follows - attempted regime change.

Further Venezuela Information Office (VIO) Clarification of Facts on the Ground

On November 15, VIO issued an alert update to dispel media inaccuracies "about Venezuela's constitutional reforms and the student protests" accompanying them. They're listed below:

-- Caracas has a student population of around 200,000; at most 10,000 participated in the largest protest to date, and VIO estimates it was 6000;

-- the major media ignore how the government cooperates with students and made various accommodations to them to be fair to the opposition;

-- Venezuelan police have protected student protesters, and article 68 of the Constitution requires they do it; it affirms the right of all Venezuelans to assemble peacefully;

-- in addition, student protest leaders linked to opposition parties were granted high-level meetings with government officials to present their concerns;

-- on November 1, their student representatives met with directors of the National Electoral Council (CNE) and presented a petition to delay the referendum;

-- on November 7, they again met with National Tribunal of Justice officials and presented the same petition;

-- on November 12, Minister of Interior and Justice Minister, Pedro Carreno, met 20 university presidents to assure them the government respects university autonomy and their students' right to assemble peacefully;

-- VIO reported what really happened at another November 1 protest after students met with CNE officials; some of them then tried to chain themselves to the building while others charged through police lines and injured six officers; in addition, one student had 20 liters of gasoline but never got to use it criminally; after the incident, the CNE president, Tibisay Lucena, issued a public statement expressing his disappointment about this kind of response to the government's good faith efforts; and

-- VIO said students and university presidents from across the nation filed a document with the Supreme Court on November 14 supporting constitutional reform. Chief justice Luisa Estela Morales praised their coming and said the court's doors are open to anyone wanting to give an opinion. The dominant media reported nothing on this. It also ignored the government's 9000 public events throughout the country in past weeks to explain and discuss proposed reforms and that a hotline was installed for comments on them, pro or con.

-- finally, when protests of any kind happen in the US, police usually attack them with tear gas, beatings and mass arrests to crush their democratic spirit and prevent it from being expressed as our Constitution's First and most important amendment guarantees. In Venezuela, the spirit of democracy lives. It never existed in the US, and we want to export our way to everyone and by force if necessary.

Here's a November 15 breaking news example of our way in action. At 8:00AM, 12 FBI and Secret Service agents raided the Liberty Dollar Company's office in Evansville, IN and for the next six hours removed two tons of legal Ron Paul Dollars along with all the gold, silver and platinum at the location. They also took all location files and computers and froze Liberty Dollar's bank accounts in an outrageous police state action against a legitimate business. This move also seems intended to impugn the integrity of a presidential candidate gaining popularity because he defies the bellicose mainstream and wants more people empowerment.

Chavez champions another way and answered his critics at a November 14 Miraflores Presidential Palace press conference where he denounced them for lying about his reform package. He explained his aim is to strengthen Venezuela's independence and transfer power to the people, not increase his own. "For many years in Venezuela," he said, "they weakened the powers of the state as part of the neoliberal imperial plan....to weaken the economies of countries to insure domination. While we remained weak, imperialism was strengthened," and he elaborated.

He then continued to stress his most important reform "is the transfer of power to the people" through an explosion of grassroots communal, worker, student and campesino councils, formations of them into regional and national federations, and the formation of "communes (to) constitute the basic nucleus of the socialist state." Earlier Chavez stated that democratizing the economy "is the only way to defeat poverty, to defeat misery and achieve the largest sum of happiness for the people." He's not just saying this. He believes and acts on it, and that's why elitists target him for removal even though he wants equity for everyone, even his critics, and business continues to thrive under his government. But not like in the "good old" days when it was all one-way.

Venezuelan Business is Booming - So Why Complain?

Business in Venezuela is indeed booming, and in 2006 the Financial Times said bankers were "having a party" it was so good. So what's the problem? It's not good enough for corporate interests wanting it all for themselves and nothing for the people the way it used to be pre-Chavez. Unfair? Sure, but in a corporate-dominated world, that's how it is and no outliers are tolerated. Thus Hugo Chavez's dilemma.

Last June, Business Week (BW) magazine captured the mood in an article called "A Love-Hate Relationship with Chavez - Companies are chafing under the fiery socialist. But in some respects, business has never been better." Writer Geri Smith asked: "Just how hard is it to do business in Venezuela" and then exaggerated by saying "hardly a day passes without another change in the rules restricting companies." Hardly so, but what is true is new rules require a more equitable relationship between government and business. They provide more benefits to the people and greater attention to small Venezuelan business and other commercial undertakings like an explosion of cooperatives (100,000 or more) that under neoliberal rules have no chance against the giants.

Nonetheless, the economy under Chavez is booming, and business loves it even while it complains. It's because oil revenues are high, Chavez spends heavily on social benefits, and the poor have seen their incomes more than double since 2004 when all their benefits are included. The result, as BW explains: "Sales of everything from basics" to luxury items "have taken off....and local and foreign companies alike are raking in more money than ever in Venezuela." In addition, bilateral trade has never been higher, but American business complains it's caught in the middle of a Washington - Caracas political struggle.

The article continues to show how all kinds of foreign business is benefiting from cola to cars to computer chips. Yet, it restates the dilemma saying "As Chavez continues his socialist crusade, there are signs of rising discontent," and it's showing up now on the country's streets with the latest confrontation still to be resolved, one way or another.

Events Are Ugly and Coming to A Head

Through the dominant media, Washington and Venezuelan anti-Chavez elements are using constitutional reform as a pretext for what they may have in mind - "to arouse the military to intervene" and oust Chavez, as Petras notes in his article titled "Venezuela: Between Ballots and Bullets." He explains the opposition "rich and privileged (coalition) fear constitutional reforms because they will have to grant a greater share of their (considerable) profits to the working class, lose their monopoly over market transactions to publicly owned firms, and see political power evolve toward local community councils and the executive branch."

Petras is worried and says "class polarization....has reached its most extreme expression" as December 2 approaches: "the remains of the multi-class coalition embracing a minority of the middle class and the great majority of (workers) is disintegrating (and) political defections have increased (including 14) deputies in the National Assembly." Add to them former Chavez Defense Minister, Raul Baduel, who Petras believes may be "an aspirant to head up a US-backed right-wing seizure of power."

The situation is ugly and dangerous, and lots of US money and influence fuels it. Petras puts it this way: "Venezuelan democracy, the Presidency of Hugo Chavez and the great majority of the popular classes face a mortal threat." An alliance between Washington, local oligarchs and elitist supporters of the "right" are committed to ousting Chavez and may feel now is their best chance. Venezuela's social democracy is on the line in the crucial December 2 vote, and the entire region depends on it solidifying and surviving.

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3. NO REMEMBRANCE, NO REMORSE FOR THE FALLEN OF IRAQ
BY

JOHN PILGER

On Remembrance Day 2007 – Veterans Day in America – the great and the good bowed their heads at the Cenotaph. Generals, politicians, newsreaders, football managers and stock-market traders wore their poppies. Hypocrisy was a presence. No one mentioned Iraq. No one uttered the slightest remorse for the fallen of that country. No one read the forbidden list.

The forbidden list documents, without favor, the part the British state and its court have played in the destruction of Iraq. Here it is:

Holocaust denial

On 25 October, Dai Davies MP asked Gordon Brown about civilian deaths in Iraq. Brown passed the question to the Foreign Secretary, David Miliband, who passed it to his junior minister, Kim Howells, who replied: "We continue to believe that there are no comprehensive or reliable figures for deaths since March 2003." This was a deception. In October 2006, the Lancet published research by Johns Hopkins University in the US and al-Mustansiriya University in Baghdad which calculated that 655,000 Iraqis had died as a result of the Anglo-American invasion. A Freedom of Information search revealed that the government, while publicly dismissing the study, secretly backed it as comprehensive and reliable. The chief scientific adviser to the Ministry of Defense, Sir Roy Anderson, called its methods "robust" and "close to best practice." Other senior governments officials secretly acknowledged the survey's "tried and tested way of measuring mortality in conflict zones." Since then, the British research polling agency, Opinion Research Business, has extrapolated a figure of 1.2 million deaths in Iraq. Thus, the scale of death caused by the British and US governments may well have surpassed that of the Rwanda genocide, making it the biggest single act of mass murder of the late 20th century and the 21st century.

Looting

The undeclared reason for the invasion of Iraq was the convergent ambitions of the neocons, or neo-fascists, in Washington and the far-right regimes of Israel. Both groups had long wanted Iraq crushed and the Middle East colonized to US and Israeli designs. The initial blueprint for this was the 1992 "Defense Planning Guidance," which outlined America's post-Cold War plans to dominate the Middle East and beyond. Its authors included Dick Cheney, Paul Wolfowitz and Colin Powell, architects of the 2003 invasion. Following the invasion, Paul Bremer, a neocon fanatic, was given absolute civil authority in Baghdad and in a series of decrees turned the entire future Iraqi economy over to US corporations. As this was lawless, the corporate plunderers were given immunity from all forms of prosecution. The Blair government was fully complicit and even objected when it looked as if UK companies might be excluded from the most profitable looting. British officials were awarded functionary colonial posts. A petroleum "law" will allow, in effect, foreign oil companies to approve their own contracts over Iraq's vast energy resources. This will complete the greatest theft since Hitler stripped his European conquests.

Destroying a nation's health

In 1999, I interviewed Dr. Jawad Al-Ali, a cancer specialist at Basra city hospital. "Before the Gulf War," he said, "we had only three or four deaths in a month from cancer. Now it's 30 to 35 patients dying every month. Our studies indicate that 40 to 48 per cent of the population in this area will get cancer." Iraq was then in the grip of an economic and humanitarian siege, initiated and driven by the US and Britain. The result, wrote Hans von Sponeck, the then chief UN humanitarian official in Baghdad, was "genocidal ... practically an entire nation was subjected to poverty, death and destruction of its physical and mental foundations." Most of southern Iraq remains polluted with the toxic debris of British and American explosives, including uranium-238 shells. Iraqi doctors pleaded in vain for help, citing the levels of leukemia among children as the highest seen since Hiroshima. Professor Karol Sikora, chief of the World Health Organization's cancer program, wrote in the BMJ: "Requested radiotherapy equipment, chemotherapy drugs and analgesics are consistently blocked by United States and British advisers [to the Sanctions Committee]." In 1999, Kim Howells, then trade minister, effectively banned the export to Iraq of vaccines that would protect mostly children from diphtheria, tetanus and yellow fever, which, he said, "are capable of being used in weapons of mass destruction."

Since 2003, apart from PR exercises for the embedded media, the British occupiers have made no attempt to re-equip and resupply hospitals that, prior to 1991, were regarded as the best in the Middle East. In July, Oxfam reported that 43 per cent of Iraqis were living in "absolute poverty." Under the occupation, malnutrition rates among children have spiraled to 28 per cent. A secret Defense Intelligence Agency document, "Iraq Water Treatment Vulnerabilities," reveals that the civilian water supply was deliberately targeted. As a result, the great majority of the population has neither access to running water nor sanitation – in a country where such basic services were once as universal as in Britain. "The mortality of children in Basra has increased by nearly 30 per cent compared to the Saddam Hussein era," said Dr. Haydar Salah, a pediatrician at Basra children's hospital. "Children are dying daily and no one is doing anything to help them." In January this year, nearly 100 leading British doctors wrote to Hilary Benn, then international development secretary, describing how children were dying because Britain had not fulfilled its obligations as an occupying power under UN Security Council Resolution 1483. Benn refused to see them.

Destroying a society

The UN estimates that 100,000 Iraqis are fleeing the country every month. The refugee crisis has now overtaken that of Darfur as the most catastrophic on earth. Half of Iraq's doctors have gone, along with engineers and teachers. The most literate society in the Middle East is being dismantled, piece by piece. Out of more than four million displaced people, Britain last year refused the majority of more than 1,000 Iraqis who applied to come here, while removing more "illegal" Iraqi refugees than any other European country. Thanks to tabloid-inspired legislation, Iraqis in Britain are often destitute, with no right to work and no support. They sleep and scavenge in parks. The government, says Amnesty, "is trying to starve them out of the country."

Propaganda

"See in my line of work," said George W. Bush, "you got to keep repeating things over and over again for the truth to sink in, to kind of catapult the propaganda."

Standing outside 10 Downing Street on 9 April 2003, the BBC's then political editor, Andrew Marr, reported the fall of Baghdad as a victory speech. Tony Blair, he told viewers, "said they would be able to take Baghdad without a bloodbath, and that in the end the Iraqis would be celebrating. And on both of those points he has been proved conclusively right. And it would be entirely ungracious, even for his critics, not to acknowledge that tonight he stands as a larger man and a stronger prime minister as a result." In the United States, similar travesties passed as journalism. The difference was that leading American journalists began to consider the consequences of the role they had played in the buildup to the invasion. Several told me they believed that had the media challenged and investigated Bush's and Blair's lies, instead of echoing and amplifying them, the invasion might not have happened. A European study found that, of the major western television networks, the BBC permitted less coverage of dissent than all of them. A second study found that the BBC consistently gave credence to government propaganda that weapons of mass destruction existed. Unlike the Sun, the BBC has credibility – as does, or did, the Observer.

On 14 October 2001, the London Observer's front page said: "US hawks accuse Iraq over anthrax." This was entirely false. Supplied by US intelligence, it was part of the Observer's staunchly pro-war coverage, which included claiming a link between Iraq and al-Qaeda, for which there was no credible evidence and which betrayed the paper's honorable past. One report over two pages was headlined: "The Iraqi connection." It, too, came from "intelligence sources" and was rubbish. The reporter, David Rose, concluded his barren inquiry with a heartfelt plea for an invasion. "There are occasions in history," he wrote, "when the use of force is both right and sensible." Rose has since written his mea culpa, including in these pages, confessing how he was used. Other journalists have still to admit how they were manipulated by their own credulous relationship with established power.

These days, Iraq is reported as if it is exclusively a civil war, with a US military "surge" aimed at bringing peace to the scrapping natives. The perversity of this is breathtaking. That sectarian violence is the product of a vicious divide-and-conquer policy is beyond doubt. As for the largely media myth of al-Qaeda, "most of the [American] pros will tell you," wrote Seymour Hersh, "that the foreign fighters are a couple per cent, and then they're sort of leaderless." That a poorly armed, audacious resistance has not only pinned down the world's most powerful army but has agreed to an anti-sectarian, anti-al-Qaeda agenda, which opposes attacks on civilians and calls for free elections, is not news.

The next blood letting

In the 1960s and 1970s, British governments secretly expelled the population of Diego Garcia, an island in the Indian Ocean whose people have British nationality. Women and children were loaded on to vessels resembling slave ships and dumped in the slums of Mauritius, after their homeland was given to the Americans for a military base. Three times, the High Court has found this atrocity illegal, calling it a defiance of the Magna Carta and the Blair government's refusal to allow the people to go home "outrageous" and "repugnant." The government continues to use endless recourse to appeal, at the taxpayers' expense, to prevent upsetting Bush. The cruelty of this matches the fact that not only has the US repeatedly bombed Iraq from Diego Garcia, but at "Camp Justice," on the island, "al-Qaeda suspects" are "rendered" and "tortured," according to the Washington Post. Now the US Air Force is rushing to upgrade hangar facilities on the island so that stealth bombers can carry 14-ton"bunker busting" bombs in an attack on Iran. Orchestrated propaganda in the media is critical to the success of this act of international piracy.

On 22 May, the front page of the London Guardian carried the banner headline: "Iran's secret plan for summer offensive to force US out of Iraq." This was a tract of unalloyed propaganda based entirely on anonymous US official sources. Throughout the media, other drums have taken up the beat. "Iran's nuclear ambitions" slips effortlessly from newsreaders' lips, no matter that the International Atomic Energy Agency refuted Washington's lies, no matter the echo of "Saddam's weapons of mass destruction," no matter that another bloodbath beckons.

Lest we forget.

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4. AMERICAN ROAD LEADS OFF A CLIFF

BY HOLLY SKLAR

THE AMERICAN DREAM doesn't need to go on a diet in the new year. It's been shrinking for years. We are becoming a nation of Scrooge-Marts and outsourcers -- with an increasingly low-wage workforce, instead of a growing middle class. Even two-paycheck households are struggling to afford a house, college, health care and retirement. The American Dream is becoming the American Pipe Dream. "The vast majority of American workers (70 percent) think 'the American Dream' has been or will be harder for them to financially achieve than it was for their parents' generation," according to the Principal Financial Well-Being Index. We are living the American Dream in reverse. The hourly wages of average workers are 11 percent lower than they were back in 1973 (adjusted for inflation), despite rising worker productivity. CEO pay, by contrast, has skyrocketed -- up a median 30 percent in 2004 alone, in the Corporate Library survey of 2000 large companies. Median household income has fallen an unprecedented five years in a row. It would be even lower if not for increased household work hours. Americans work over 200 hours more a year on average than workers in other rich industrialized countries. We are breaking records we don't want to break. Record numbers of Americans have no health insurance. The share of national income going to wages and salaries is the lowest since 1929. Middle-class households are a medical crisis, an outsourced job, or a busted pension away from bankruptcy. The congressional majority voted the biggest cut in history to the student-loan program, at a time when college is more important, and more expensive, than ever. Public-college tuition has risen even faster than private tuition, jumping 54 percent over the last decade (adjusted for inflation). Our shortsighted government, beholden to powerful campaign contributors and lobbyists, is cutting rungs from the ladders of upward mobility, while cutting taxes for the superwealthy. That's not the American Dream. Contrary to myth, the United States is not becoming more competitive in the global economy by taking the low road. We are in growing hock to other countries. We have a huge trade deficit, a hollowed-out manufacturing base, and deteriorating research and development. The infrastructure built by earlier generations has eroded greatly, undermining the economy, as well as public health and safety. Households have propped themselves up in the face of falling real wages by maxing out work hours, credit cards and home-equity loans. This is not a sustainable course. The low road is like a shortcut that leads to a cliff. We will not prosper in the 21st Century global economy by relying on 1920s corporate greed, 1950s tax revenues, pre-1970s wages, and global-warming energy policies. We will not prosper relying on disinvestment in place of reinvestment. We can't succeed that way any more than farmers can "compete" by eating their seed corn. As Business Week put it in a special issue on China and India, "China's competitive edge is shifting from low-cost workers to state-of-the-art manufacturing. India is creating world-class innovation hubs, and its companies are far better performers than China's." The United States will not succeed by shifting increasingly from state-of-the art manufacturing and world-class innovation hubs to low-cost workers. Contrary to myth, many European countries are better positioned for the future than the United States, with healthier economies and longer healthy life expectancies, greater math and science literacy, free or affordable education from preschool through college, universal health care, less poverty, and more corporations combining social responsibility and world-class innovation. Among the world's 100 largest corporations in 2005, just 33 are U.S. companies, while 48 are European. In 2002, 38 were U.S. companies and 36 were European. CEO-worker pay gaps are much narrower at European companies than American. The United States dropped from number one to number five in the global information-technology ranking by the World Economic Forum, whose members represent the world's 1,000 leading companies, among others. The top four spots are held by Singapore, Iceland, Finland and Denmark, with Sweden number six. Instead of pretending the problem is overpaid workers and accelerated offshoring, we need to shore up our economy from below and invest in smart economic development. Let's make that our New Year's resolution for the American Dream. Back to Top