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Time for change's Journal
Posted by Time for change in General Discussion
Thu Apr 30th 2009, 04:45 PM
Can people really handle their responsibilities as citizens? Or must our “betters”, who claim to know what is best for us, forever lead us around like children? We need to cut through their fog and condescension. We must reclaim our power as citizens
The Federal Reserve System originated in a highly secret meeting of seven of the wealthiest men in the world, taking place at Jekyll Island, off the coast of Georgia in 1910. The seven men included one of our nation’s most powerful U.S. Senators, Nelson Aldrich, and six bankers. An article written by one of its participants, Frank Vanderlip, 22 years after the passage of the Federal Reserve Act, documents the aura of secrecy that surrounded the creation of the Federal Reserve:

I do not feel it is any exaggeration to speak of our secret expedition to Jekyll Island as the occasion of the actual conception of what eventually became the Federal Reserve System… We were told to leave our last names behind us… We were instructed to come one at a time… where Senator Aldrich’s private rail car would be in readiness…

It was the names of all printed together that would have made our mysterious journey significant in Washington, in Wall Street, even in London. Discovery, we knew, simply must not happen, or else all our time and effort would be wasted. If it were to be exposed publicly that our particular group had got together and written a banking bill, that bill would have no chance whatever of passage in Congress.


The Federal Reserve as a system for favoring wealthy financial interests

Edward Griffin explains the purpose of the Federal Reserve in his book, “The Creature from Jekyll Island – A Second Look at the Federal Reserve”. He describes it as a cartel of private banks – meaning a group of banks joined together in order to maximize profits by reducing competition through the creation of a monopoly. That Cartel was legalized in 1913 with the enactment of the Federal Reserve Act of 1913. Since the creation of a powerful cartel would seem anti-democratic, the real purpose of the Federal Reserve System had to be disguised with a purported purpose. Griffin explains the concept like this:

To cover the fact that a central bank is merely a cartel which has been legalized, its proponents had to lay down a thick smoke screen of technical jargon focusing always on how it would supposedly benefit commerce, the public, and the nation; how it would lower interest rates, provide funding for needed industrial projects, and prevent panics in the economy. There was not the slightest glimmer that, underneath it all, was a master plan which was designed from top to bottom to serve private interests at the expense of the public.

William Greider, in his new book, “Come Home America – The Rise and Fall (And Redeeming Promise) of our Country”, elaborates on this subject by noting the anti-democratic nature of the Federal Reserve and how it has favored wealth and power at the expense of the great majority of Americans in recent decades, to bring us to our current financial crisis:

It was mainly the Federal Reserve – sheltered from public scrutiny and protected from political accountability – that engineered America’s great shift in fortunes… with its successful campaign to suppress price inflation. Then it proceeded to encourage or passively allow the scandalous financial behavior that followed – wealth being concentrated in the financial sector, the growing inequalities among Americans, deregulation and the creation of dominating megabanks, and recurrent frauds and financial bubbles followed repeatedly by government bailouts of banks and financial firms.

The Federal Reserve’s policy essentially tilted the normal economic balance hard in one direction, then held it there for a generation. It favored wealth over wage income, creditors over debtors, capital over labor, financial investors over producers… the few over the many. My indictment may sound extreme and unfamiliar since few in public life talk about the United States’ central bank in terms of the deeper consequences its policy decisions have. Both the press and the politicians defer to the mystique of the Fed… This deference enhances the central bank’s power…

The Federal Reserve has abused its powers as a government institution. By favoring wealth and wealth holders over the broader interests of Americans year after year, the central bank’s policy decisions proved to be deeply unfair and antidemocratic, and also irresponsible…


The first major Federal Reserve Failure and its aftermath

Greider describes how the subservience of the Federal Reserve to the banking industry facilitated the Great Depression of the 1930s, following the Stock Market Crash of 1929:

The Federal Reserve’s first historic disgrace occurred after the crash of 1929 when the Fed failed to counter deflationary forces that contributed to what became known as the Great Depression… They resisted the political cries for prompt action. Lowering the interest rates, they feared, would undermine “sound money” and damage the balance sheets of major banks. For three grueling years, Fed officials hesitated as the American economy unwound… driving unemployment to a peak of 25 percent….

But with the onset of the Franklin Roosevelt Presidency beginning in 1933 things began to change markedly for the better. The steep slide in GDP was arrested in 1933. Job growth during FDR’s first (5.3%) and third (5.1%) terms still stand today as the largest recorded in U.S. history.

Greider describes how the Federal Reserve was reformed during FDR’s presidency:

In the aftermath of the destruction, the Federal Reserve was substantially reformed. Washington consolidated its control of monetary policy and the Fed adopted a more balanced understanding of the broader public interest it was supposed to serve…

The New Deal didn’t just fade away after FDR’s death. Instead, due to its stunning success, most of its components lasted for decades. Largely as a result of this, we experienced for the next three decades what Nobel Prize-winning economist Paul Krugman calls “the greatest sustained economic boom in U.S. history”.

As a result of the labor protection laws enacted during FDR’s presidency, the percent of non-agricultural U.S. workers who were members of labor unions rose from 10% to close to 30% during his presidency and remained at that level for many decades, until the anti-labor policies of the Reagan administration resulted in a precipitous decline in union membership. The labor protection laws and other New Deal innovations, such as Social Security and unemployment insurance, were instrumental in alleviating poverty in our country and producing a vibrant middle class.

Median family income is one of the best indicators of the economic health of a people. This chart shows median family income levels, beginning in 1947, when accurate statistics on this issue first became available. Family income rose steadily (in 2005 dollars) from $22,499 in 1947 to more than double that, $47,173 in 1980.


The disconnect between worker productivity and income

Thus it was that from the beginning of FDR’s presidency through the late 1970s, the American Middle Class was created and sustained, and it was generally accepted in our country that the benefits of economic growth should be widely shared. But beginning in the late 1970s, this began to change. Greider summarizes what happened:

For 25 years… financial wealth grew much faster than the real economy, where average wage incomes have long been stagnant or falling… Year after year, the financial system’s valuations and profits departed from the underlying economy upon which financial assets are presumably based… The financial system achieved its own lofty altitude… The Dow was a little below 800 in August 1982… 25 years later, the Dow was at 14,100… The Dow reached its peak in October 2007, just before the financial crisis struck…

In his book “Crunch – Why Do I Feel So Squeezed”, Jared Bernstein discusses the apparent paradox of how the financial situation of so many Americans in recent years could be so poor in the presence of such healthy “economic indicators”:

Over the course of this highly touted economic expansion, poverty is up, working families’ real incomes are down…. By 2007, 44% said they lacked the money they needed “to make ends meet”…

If you feel squeezed, chances are it’s because you are squeezed. Most of the indicators that matter most to us in our everyday lives… are coming in at stress inducing levels, but GDP… keeps on truckin’. Something’s wrong, something fundamental…

The name of the problem is economic inequality… It’s a sign that something important is broken: the set of economic mechanisms and forces that used to broadly and fairly distribute the benefits of growth… unions, minimum wages… full employment… quality jobs, safety nets, and social insurance…

How did it happen that income inequality has grown so much and the previous mechanisms for widely distributing the benefits of growth disappeared? Greider describes the process as beginning with Paul Volcker’s manipulations as Chairman of the Federal Reserve:

The recessionary policies of Fed Chairman Volcker

In 1979… Paul Volcker, the Fed chairman… threw out the usual rules and slammed on the brakes, sending interest rates soaring, shutting down credit, and abruptly stopping economic growth. This started a wrenching two-year recession in which unemployment peaked at 11 percent. It also doomed Carter’s reelection in 1980….

Volcker’s tough intervention against the inflationary disorders effectively preempted the politicians, and he basically ignored their complaints… It had the full and fervent support of Wall Street as well as of many citizens… The true winners are people of vast accumulations of financial wealth… Virtually every financial asset… became more valuable as inflation declined… Investors began collecting bonuses…Debtors, on the other hand, experienced the opposite consequences. In August 1982, Volcker finally relented on his recessionary policy and abruptly reduced interest rates, signaling that the Fed would at last allow the economy to recover…

The Federal Reserve had won its great battle against inflation – it fell substantially during the 1982 recession – but the Fed continued its war… By its estimate, inflation was still too high – bouncing around 4 to 5 percent… The Federal Reserve suppressed inflation by targeting the wages of working people. It prevented their incomes from rising even though, in a healthy economy, wages would normally rise consistently. Nobody in authority ever acknowledged this strategy… By holding back the natural energies of the economic recovery, this monetary policy kept… the unemployment rate higher… at around 6 percent. That made it very difficult for industrial workers… to demand higher wages…. But the conservative Federal Reserve regarded rising wages as an inflationary threat and worked deliberately to prevent it. Throughout the 1980s and most of the 1990s, the Fed protected its victory over inflation by keeping its foot on the brake and tapping it occasionally to make sure the economy did not get too healthy. That is, the federal government – represented by the central bank – ensured that the broad ranks of working people would not share in the “good times”…

Financial deregulation under Chairman Greenspan

The new Fed chairman (Alan Greenspan, 1987-2006) set out to liberate finance from government. His most audacious initiative was … to legalize the new all-purpose megabank that would concentrate financial power in a handful of very large institutions. Greenspan preempted Congress on this issue by unilaterally approving what was still prohibited by law…. Hard lessons learned during the crisis of the 1930s were discarded as obsolete. Democrats and Republicans collaborated in repealing or gutting prudential safeguards enacted in the New Deal… For three decades, Wall Street bankers had lobbied to reunite commercial banking with investment banking… The two realms had been separated after the stock market crash of 1929 because fraudulent self-dealing by Wall Street’s major banks fed the stock market mania that led to the crash. Preaching financial modernization, Greenspan restored the system that had failed some seventy years before. These banking conglomerates were equipped with trapdoors and accounting gimmicks that allowed the bankers to hide the debts and troubled assets. The financial gimmicks blew up in the sub-prime mortgage crisis of 2008…

The Fed first denied there was a housing bubble, then tried to restore order… until the bubble popped – and revealed the mess in Wall Street… The financial industry was earning inflated profits… and many firms borrowed heavily… marketing millions of dubious mortgages… The ‘debt industry” became increasingly unstable and self-indulgent as it prospered, but the Fed stood by it… When the accumulated excess led to crisis and failure, the central bank rushed to rescue the endangered Wall Street firms…


Our current financial crisis

So it is that the Federal Reserve helped us to arrive at our current financial crisis through a long process of subservience to wealth and power. Greider describes the current status of the Federal Reserve and its relationship to our current financial crisis:

The modern Federal Reserve once again faces the prospect of historic disgrace… Its inherent democratic contradictions are becoming visible to all. The US government protects certain large interests from the costs of their own recklessness, but prescribes the perils of market competition for everyone else. The illegitimacy of the present system is reflected in the recent bailouts of major financial houses in what amounts to American-style socialism for selected interests – the largest and wealthiest enterprises in finance. The losses incurred by these Wall Street firms were effectively socialized by the bailouts, meaning that the costs were dumped on society and the taxpayers. The Fed relieved the banks of their rotten assets and transferred them to the balance sheet of an unwitting public. The Federal Reserve, having aided in creating the oversized megabanks and having declined to regulate their behavior rigorously… when these institutions are endangered, the Federal Reserve rescues them because, well, they are indeed “too big to fail.” – or so we are told.

This arrangement is not only unjust and hypocritical, it also actively encourages the kind of reckless behavior the central bank is supposed to prevent. The potential for collusion at the public’s expense is enormous… Since the public is not allowed to know all the terms we cannot judge whether the Fed defended the public interest or simply gave the bankers whatever they said they needed… There’s no need to bother taxpayers with the messy details of what happens behind closed doors…

James Galbraith, in his book, “The Predator State”, explains how our financial elites depend upon misinformation in order to get the American public to acquiesce in their schemes. Specifically, he says that our underlying problem is NOT that the banks aren’t lending much money, but that the American people are loaded with debt. Even if massive handouts to the banks get them to increase lending (which seems unlikely), that wouldn’t erase the massive debts of the American people. In fact, it would add to it, since the American people will ultimately have to pay for the bank bailouts. And Galbraith doesn’t mince words in castigating Treasury Secretary Geithner’s plan:

The plan is yet another massive, ineffective gift to banks and Wall Street. Taxpayers, of course, will take the hit… The banks don't want to take their share of those losses because doing so will wipe them out. So they, and Geithner, are doing everything they can to pawn the losses off on the taxpayer…. In Geithner's plan, this debt won't disappear. It will just be passed from banks to taxpayers, where it will sit until the government finally admits that a major portion of it will never be paid back.


The Federal Reserve in the context of American democracy

The Federal Reserve is anti-democratic by its very nature because it has been given extraordinary powers to manipulate the financial status of our nation, and yet, being an unelected and “independent” body, it is not limited in its actions by accountability to the American public. Yet the anti-democratic machinations of the Federal Reserve are but one manifestation of numerous anti-democratic forces working on the life of our nation today.

Perhaps the most serious underlying problem with our country today is its subservience to those with wealth, power, and political connections. That attitude is fostered in a number of ways. It is aggressively encouraged by corporate America through their news media, and by the elected officials who receive their blessings and money – including almost all of the Republican Party and much of the Democratic Party. And it is fostered by the revolving doors and very close ties between our nation’s elites – in government, the Federal Reserve, Wall Street, and much of the rest of corporate America.

This attitude has radically anti-democratic consequences, in that it sets up a vicious cycle, whereby our government helps to increase the wealth and power of those who already have the most of it, and in return the wealthy and the powerful help their friends stay in office, so that they can continue to dole out more favors to them.

No politician, and few other people, would acknowledge that it should work that way. That would sound “elitist” and be contrary to our Declaration of Independence, which says that we are all “created equal” and have inalienable rights to life, liberty and the pursuit of happiness. But nevertheless, our culture and system of government is permeated with the idea of subservience to the powerful.

Emblematic of this problem was President Obama’s recent statement, in response to being asked how he intends to handle the worst crimes ever committed by a presidential administration (Bush/Cheney) in US history, that we should “look forward, not backward” and not be concerned about “vengeance”. Since only crimes committed in the past can be prosecuted, the most obvious translation of that statement is that the president thinks we no longer have need for a criminal justice system – or rather, not with respect to a particular class of Americans, who should be allowed to commit crimes with impunity.

I’m not saying that I think he really believes that. More likely, his statement represents bowing to what he perceives as the political pressure that would accompany a decision to prosecute high ranking members of a previous presidential administration. Nevertheless, it represents the current political reality in our country – at least as perceived and encouraged by those in power.


A light at the end of the tunnel?

The anti-democratic attitudes noted above are primarily held and encouraged by our nation’s elites. For much of the history of our country they have been highly successful in transmitting those attitudes to large segments of the American public. But if and when the American people wise up and recognize how they have been played for fools all these years, the game will begin to unravel. And there are many signs today that the American people are indeed waking up to reality.

First there is the rapid demise of the Republican Party, manifested in the elections of 2006 and 2008. Those elections show that most Americans now recognize the deeply anti-democratic nature and hypocrisy of the Republican Party. But the demise of the Republican Party alone, even if complete, will not provide a far-reaching or permanent solution to our problems. As long as conservative Democrats like Arlen Specter, Joe Lieberman, Ben Nelson and Evan Bayh abound, progressive changes will occur only with great difficulty.

Another encouraging sign is a February Gallup poll which shows that Americans favor by almost a 2 to 1 margin either an independent panel or criminal investigations of the Bush administration for their use of torture. This finding is truly remarkable in view of the efforts of our corporate news media and a popular president to discourage investigation or prosecution of those crimes. Just imagine how much more enthusiastic the American public would be about this issue if our nation’s elites didn’t try to discourage it.

Another promising sign is a series of polls that showed a huge increase in the percentage of Americans who get “most of your national and international news” through the Internet – from a paltry 13% in 2001 to 40% in 2008. Those same polls showed that in 2008 the percentage of people under 30 who get most of their national and international news through the Internet was 59%, equal to those who noted television as their primary source (respondents were given more than one choice). The Internet is a much more active medium than television, and it is much easier to receive news via television than to obtain it via the Internet. The substantial switch from television to the Internet by so many millions of Americans must signal a rapidly growing awareness of the severe class bias of our corporate news media, as well as a willingness to put effort into becoming better informed.

And finally, Americans have become thoroughly alienated from the corporate elite who so affect their standard of living, as demonstrated by a 2007 Harris poll asking which industries Americans regarded as “generally honest and trustworthy”: Oil companies 3%; health insurance companies 7%; telephone companies 10%; pharmaceutical companies 11%; electric and gas utilities 15%. With numbers like that, and with more and more Americans turning to alternate news sources, it shouldn’t be too long before they begin to connect the dots and begin to hold their elected representatives more accountable for their actions.


The ultimate question

Greider summarizes what it will take to restore the promise of our democracy:

What the country needs is a third front in the political power struggle, a counterforce to both government and the private sector. This new source of countervailing power can come only from the people themselves…

Can people really handle their responsibilities as citizens? Or must our “betters”, who claim to know what is best for us, forever lead us around like children? We need to cut through their fog and condescension. We must reclaim our power as citizens…

Discuss (55 comments) | Recommend (+32 votes)
U.S. Democracy in Crisis
Time for change


The Democratic Underground was born on one of the worst days in U.S history – The day that the worst President in U.S. history took office.

Now, here we are 8 years later, and we’ve managed to remove that cancer from our nation and replace it with something much better. Notwithstanding my many ambivalent feelings towards President Obama, I have no doubt that he will be infinitely better for our country than his predecessor.

Yet despite that, our country has been terribly scarred from the events of the past eight years, and it continues to suffer from all of the root problems that brought us the worst President in our history in 2000 and 2004. Therefore, it is worth taking a look at the root problems that brought us to this sorry state of affairs.


MAJOR IMPEDIMENTS TO DEMOCRACY IN THE UNITED STATES

One thing that we must keep in mind when considering our current problems is that they are not new. They were greatly exacerbated by eight years of Bush administration misrule, but they did not start with George W. Bush and Dick Cheney.


Money in politics

All but the most naïve of the American citizenry know that the wealthy and powerful in our country routinely influence our local and national elections through huge campaign contributions. And they also know that they are generally well rewarded for their “contributions”. And they also know that bribery is presumably against the law in our country. Yet, on the rare occasion that our politicians are actually accused of bribery, our news media makes a great big deal over it, as if bribery is actually a rare event in American politics.

The end result is that a great many of our politicians do everything they can to make their wealthiest constituents happy with them, at the expense of everyone else. They do that with the knowledge that the voters they lose in doing so will be more than compensated for by the disinformation that will be paid for by their wealthiest constituents. I discuss this situation in more detail here, here, and here.

There are a few dots to connect here, but any reasonable assessment of American politics tells us that bribery is routinely used to buy and sell elections in our country. So routine is it that it is actually built into our system and legalized. But that fact is never overtly spoken of. To do so would imply that our system of government is as much or more an aristocracy than it is a democracy.

Bill Moyers, in his book “Moyers on Democracy”, explains the situation bluntly:

We have lost the ability to call the most basic transaction by its right name. If a baseball player stepping up to home plate were to lean over and hand the umpire a wad of bills before he called the pitch, we’d call that a bribe. But when a real estate developer buys his way into the White House and gets a favorable government ruling that wouldn’t be available to you or me, what do we call that? A “campaign contribution”.

Let’s call it what it is: a bribe.

The legality of contributing money to political candidates, with the implicit (though not explicit) understanding that that money will buy political favoritism, has been defended by both our courts and our Congress by sanctimoniously pointing to the free speech provisions in the First Amendment to our Constitution and claiming that money is speech. But the absurdity of that contention should be obvious to anyone with some primary school education. Speech is of value from a political standpoint (or any other standpoint) only when it is heard. But if one billionaire has one thousand times as much opportunity to speak through a medium which reaches millions than several thousand other people added together, the speech of that one billionaire will drown out the speech of most other people, thereby interfering with their right to free speech.


Election fraud

Electronic vote switching with DRE (direct-recording electronic) machines poses a great danger to the integrity of our election system – by virtue of its ability to switch a voter’s vote without being noticed by the voter. In other words, someone tries to vote for John Kerry, and the machine registers a vote for George Bush instead. What makes matters worse is that many or most of these machines don’t even produce a piece of paper with the vote on it, which can then later be used for a recount. So, if fraud is suspected there is no recourse. And worse yet is the fact that most of these machines use proprietary (secret) code to determine who the voter voted for.

We know for a fact that vote-switching occurred in the 2004 election. One study, based on voter reports to the national Electronic Incident Reporting System (EIRS), showed that vote switching incidents favored Bush over Kerry by a ratio of 12 to 1 nationally. A similar study showed that these vote switching incidents that favored Bush were 9 times as common in the heavily contested “swing states” than in non-swing states. To make the point that the EIRS reports represent only a small fraction of actual Election Day problems, an investigation by the Washington Post identified about 25 electronic voting machines in Youngstown, Mahoning County, Ohio, that were said to have been switching votes all day long. Yet only eight incidents of this nature from Mahoning County (all in favor of Bush) were reported to EIRS that day.

Clint Curtis, a computer programmer working in Florida prior to the 2004 election, testified before the Democratic staff of the House Judiciary Committee that he was requested in 2000 by his boss (at the request of a high level Republican operative, Tom Feeney) to “develop a prototype of a voting program that could alter the vote tabulation in an election and be undetectable”. Curtis’ testimony was followed by the death of Raymond Lemme, who while investigating Curtis’ allegations was found dead in a Georgia hotel room, just a couple weeks after telling Curtis that he had traced the corruption “all the way to the top”,

Another type of election fraud is the illegal purging of registered voters from the voter rolls. Like vote switching, the increasing computerization of voter registration is no doubt making it much easier to perpetrate this type of fraud on a mass basis.

This article describes a great deal of evidence that voter registration fraud played a major role in the 2004 presidential election, and in fact was probably the deciding factor in Ohio, which gave George Bush his electoral victory. Similarly, although the 2000 presidential election was stolen by a variety of means, voter registration fraud was quantitatively the most important method used. In 2000, the Florida Governor’s office used a computer program to purge tens of thousands of mostly black and Democratic voters.

There are many other means of election fraud that have been used in our country to destabilize our democracy. I discuss this issue in more detail, along with means for preventing election fraud, in this post.


Our corporate news media

If cash donated to their political campaigns is not enough to carry them through to victory, and if election fraud doesn’t happen to play a significant role, the corporate news media serves as another valuable tool for those seeking to sabotage our democracy. This problem overlaps with the role of money in politics, since those who own and control the corporate media are uniformly wealthy, and since it was their money that led to the acts that enabled our corporate media to become what it is today – Ronald Reagan’s veto of Democratic legislation to enforce the Fairness Doctrine in 1987, and the Telecommunications Act of 1996. This legislation allowed the monopoly consolidation of our news media to the point where today it is controlled by a very small number of extremely wealthy individuals.

Several excellent books have been written about the extent to which wealthy corporate interests control our news media today. I would highly recommend “Lapdogs – How the Press rolled Over for Bush”, by Eric Boehlert, “What Liberal Media – The Truth About BIAS and the News”, by Eric Alterman, and “Into the Buzzsaw – The Myth of a Free Press”, edited by Kristina Borjesson. And I have ranted about pseudo-journalists such as Tim Russert, who have made a largely successful, but hypocritical effort to appear unbiased to their viewers.

The bottom line, as Bill Moyers points out, is that the protection offered us by our First Amendment is based on the assumption of a separation of our government and a free press, which is supposed to protect us from government abuses. Moyers wrote this during the Bush administration:

What would happen, however, if the contending giants of big government and big publishing and broadcasting ever joined hands, ever saw eye to eye in putting the public's need for news second to free-market economics? That's exactly what's happening now under the ideological banner of "deregulation". Giant media conglomerates that our founders could not possibly have envisioned are finding common cause with an imperial state in a betrothal certain to produce not the sons and daughters of liberty but the very kind of bastards that issued from the old arranged marriage of church and state.

Consider the situation. Never has there been an administration so disciplined in secrecy, so precisely in lockstep in keeping information from the people at large and -- in defiance of the Constitution -- from their representatives in Congress. Never has the powerful media oligopoly ... been so unabashed in reaching like Caesar for still more wealth and power. Never have hand and glove fitted together so comfortably to manipulate free political debate, sow contempt for the idea of government itself, and trivialize the peoples' need to know.


Secrecy in government

Democracy suffers terribly when a nation’s citizens are uninformed – especially when they are uninformed with respect to the actions and motivations of their own government. If we don’t know what our government is doing, then how can we be expected to vote them out when they do something that we would consider deeply immoral had we known about it?

Consider war for example. If Americans understood the real motivations for its nation’s wars, they would probably be much more likely to strenuously object to those wars. That would make war much less politically feasible, and our country would therefore be led into war much less frequently than it has been in the past.

That is why I so hate the “national security” excuse for withholding information from us, the American people – which has become so routine that it is willingly or passively accepted by the good majority of Americans. I very much doubt that the “national security” excuse for withholding information from the American people has anything to do with national security more than 5% of the time. Rather, the reason for withholding such information from us is almost always something totally different. It is to blind us to the real reasons for war or other nefarious acts, so that we will accept them and willingly support or even risk our lives in their cause.


Rampant U.S. nationalism and the GAME

Two months ago I wrote a DU post that I titled “The GAME”, which I began by discussing “Unmentionable things in U.S. politics” – including such things as the stealing of a U.S. presidential election, calling American military or covert actions immoral rather than merely “misguided”, and imputing bad intentions rather than mere incompetence to a U.S. president.

I find this to be terribly repressive, not because I personally can’t mention these things, but because our elected representatives are under tremendous pressure not to discuss them. We elect them to represent us and our nation, and except for some rare courageous exceptions such as Dennis Kucinich, Cynthia McKinney, and Robert Wexler, they refuse to even talk about some of our very most important issues.

It has occurred to me that this provides the backdrop for a huge GAME that has been foisted upon us. A prerequisite of the GAME is to create an alternate reality that must be believed by a critical mass of people in order for the GAME to proceed. Why is that necessary? I believe it’s necessary because the reality is so terrible that if enough people consciously recognized it they would rise up and simply refuse to play the GAME.

Although the GAME’s masters set the rules, there are two related character traits of many Americans that cause them to play along: Rampant nationalism and a propensity for denial. Rampant nationalism is the attitude that our country is inherently better than any other country – so much so that it can do no wrong. This attitude is drummed into the American people from the time that most of us learn how to talk. We are made to feel that to believe or speak otherwise demonstrates a dangerous lack of “patriotism”, which makes us deserving of being shunned – or worse.

The other character trait that persuades too many Americans to play the GAME is denial. Believing terrible things about one’s country can be very painful. Accepting reality as it is, rather than as one would like it to be, can be very painful. To make this point, in a recent post titled “12 Things that Never Happened in American History”, I discuss the following official stories that we have been told (or not told):

The U.S. is not an imperialist country; FDR’s New Deal was not instrumental in ending the Great Depression; the Cold War was just about fighting totalitarian Communism; JFK was assassinated by a lone gunman; bribery is infrequent in American politics; Iran-Contra was not a criminal abuse of presidential power; U.S. presidential elections cannot be stolen; Bush and Cheney did everything they could to protect us against the 9/11 attacks; the Bush administration’s crimes are not serious enough to warrant impeachment or prosecution; and, we’re barely told about our nation’s killing of more than a million Iraqi civilians, the October Surprise, or Operation Northwoods.


CONSEQUENCES

These impediments to democracy work together to surrender great amounts of power into the hands of a small number of elites, who use that power in the cause of increasing their wealth and power at the expense of everyone else. It is a vicious cycle that is very difficult to break. Here are some of the major tragic consequences.


Rampant militarism and illegal aggression against sovereign nations

We are so often told how good and pure our nation and its people are that only a minority of Americans are aware of the extent of our many illegal and immoral activities. Many or most who aren’t aware of these activities would be shocked to learn about them and quite resistant to accepting that information as the truth.

In myriad instances we have overthrown or assisted in the overthrow of sovereign nations. In the good majority of these instances we have substituted a repressive right wing government for one that was much more responsive to the needs and desires of the nation’s citizenry. Sometimes genocide was used to accomplish our goals. The purpose of these activities has most often been to create a government that is friendlier to the desires of American businesses or corporations – though we always have some sort of rationalization for our actions.

In “Excuses for War” I discuss many of the phony excuses that the United States government has used to lead us into war, including its Indian wars, the Mexican-American War, the Spanish-American War, and the Vietnam War.

In “The Roots and Consequences of U.S. Overseas Imperialism” I note or discuss our covert and overt illegal and immoral overthrowing of the sovereign nations of Hawaii (1893), Cuba (1898), Puerto Rico (1898), the Philippines (1899-1902), Nicaragua (1910), Honduras (1911-1912), Iran (1953), Guatemala (1954), South Vietnam (1963), Chile (1973), Grenada (1983), Panama (1989), Afghanistan (2001), and Iraq (2003).

In “The Meaning of U.S. Imperialism, Genocide and Militarism” I note U.S. perpetrated genocides, as described in “State of Darkness” by David Model, including our atomic bombing of Japan (1945), those perpetrated against Guatemala (1954), Vietnam (1954-73), Indonesia (1965), Cambodia (1970-75), Laos (1969-74), and East Timor (1975), and our two wars against Iraq.

Other atrocities include our invasion of Cuba in 1961; U.S. Marine invasion of the Dominican Republic in 1965 to put down a rebellion against their repressive right wing government; U.S. military support of Haitian tyrant and mass murderer, Francois Duvalier; and numerous brutal interventions in several Latin American and African nations.


Massive Income and wealth inequality

Inequality of wealth in the United States is truly astounding – and it is increasing at a fast rate. In the United States in 2001, 1% of the population controlled 38% of the wealth, whereas the bottom 40% owned just 1%. That means that, on average, individuals in the top 1% owned about 1,500 times more wealth than individuals in the bottom 40%.

The rising level of income inequality in our country recently exceeded the point where it stood just prior to the stock market crash of 1929, which led to the worst depression in U.S. history. There are many who see a connection between the income inequality preceding that depression and our current situation. This graph, which plots income inequality measured as the ratio between the average income of the top 0.01% of U.S. families compared to the bottom 90%, over time, makes that point.

I discuss the subject of income and wealth inequality here, here, and here.


The loss of the rule of law

During the Bush Presidency I often argued that he should be impeached for his many crimes. Now that he can no longer be impeached, I have argued that our Justice Department should prosecute him for those crimes, and if it fails to do so then the International Criminal Court (ICC) should step in.

While Bush was still President, President Obama weighed in against impeachment, saying that impeachment should be reserved for only the most serious crimes. Now that he is President he has thus far given little or no indication that he intends to have his Justice Department prosecute George Bush or any other high level Bush administration official for their crimes. But if widespread torture, an illegal war of aggression, spying on American citizens, suspending of the right of habeas corpus, and numerous other violations of our Constitution don’t constitute serious crimes, then what does?

What would people say if a prosecuting attorney failed to prosecute a rapist and murderer simply because he had high level political connections? Who would accept that? Then why when far more serious crimes are committed by a President of the United States are there so many people who seem to think that it is ok to sit passively by and make no attempt to hold the perpetrators accountable for their crimes?

I’ll tell you why. It’s like I said earlier in this post. Saying that a former U.S. President might be guilty of prosecutable crimes is simply against the rules of the GAME. Given that and the failure to hold the Reagan administration accountable for its Iran-Contra crimes, George Bush and Dick Cheney connected the dots and thought that they might be able to get away with just about anything. Testing that assumption by moving ahead with prosecutions might be politically risky for the Obama administration. The Republican Party would no doubt raise holy hell if there was an attempt to prosecute high level Bush administration officials.

Consequently, we live in country in which, protestations to the contrary notwithstanding, certain people are indeed above the law. That fact, taken together with all of the impediments to democracy discussed in the first part of this post, means that democracy and the rule of law in our country are in grave danger. Indeed, some believe that we narrowly averted a military coup perpetrated by the Bush administration.

The American people and their leaders need to reassess what our country stands for. Is our democracy important enough to take steps to remove the role of money in politics, reform our election system, break up the corporate monopoly on our news media, require government actions to be much more transparent than they now are, and dare to look more objectively at who we are and what we do? Can we give up imperialism and warfare for the sake a world in which nations live and work together to further the cause of peace and justice? Can we make our nation one in which all of its citizens truly have the opportunity for life, liberty and the pursuit of happiness? And do our laws apply to all people, not just to those who lack the political influence to avoid them?

If we think that these things are important we have a great deal of work to do, lest our country sinks into a tyranny from which it may never recover.
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