Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
Keep CounterPunch ad free. Support our annual fund drive today!

The Dogs of War, the Bears of Wall Street


The higher Bush tries to loft himself with war talk, the darker grow the economy’s dire responses.

On Tuesday the Dow Jones industrials dropped nearly 190 points to hit a four-year low. The broader market also finished down. The Nasdaq composite index, homeport for the New Economy, set a new six-year low. The Standard & Poor’s 500 index was down 14.45, or 1.7 percent, at 819.25.

The Fed’s Open Market Committee chose to leave rates at 40-year lows at its meeting Tuesday, saying bravely that consumer and business demand is “growing at a moderate pace.” But it also noted that considerable uncertainty remains about the timing and strength of an economic recovery,

Meanwhile, leading economic indicators and housing starts have fallen for three months in a row. Oil prices are up 40 per cent since the start of the year.

Last week we wrote here that we’ve now seen seven straight quarters of declining investment on plant and equipment and a sharp drop of the growth of consumer spending over the past four or five months. Suppose, we asked, there’s another drop in equity prices, reflecting dawning awareness that the performance of many of America’s mightiest corporate names has been based entirely on fraudulent numbers.

So now equity prices have dropped again and federal prosecutors have announced they’re opening a criminal probe into Xerox’s accounting practices. Xerox stock promptly fell 71 cents to $5.96 after the company said federal prosecutors were opening a criminal inquiry into the company’s accounting practices. WorldCom revealed that it probably misreported $9 billion in revenue, not $7 billion.

The official rate of profit on capital stock in the non-financial corporate sector as a whole is now) at its lowest level of the postwar period (except for 1980 and 1982).

If this was Bill Clinton, the commentators would be flaying him alive for Wag-the-Dog attempts to use war talk as a way to distract attention from economic bad news. Thus far Bush has remained aloft on his magic carpet, but he’s losing altitude steadily while Wall Street chews its lip, foreign denunciations pour in, and the German Social Democrats and Greens exult in the way Bush handed them an entirely unexpected victory last weekend.

America no longer has Senior Reps of the Ruling Class like John McCoy or “Wise Old Men” like the infinitely tacky Clark Clifford. At moments like this, such Senior Reps would step forth with measured warnings to Bush about his reckless path. These days we’re left with Henry Kissinger.

Probably the nearest thing we have to a senior statesman is that brilliant Democratic politician, Senator Bobby Byrd, whose monuments strew West Virginia.

The only opponent Senator Bobby Byrd of West Virginia has to fear is death itself so in Congress he speaks with a frankness rivaled only by the Texan libertarian, Rep Ron Paul. In the last week Byrd has excelled himself in speeches on the senate floor.

Byrd denounced Bush’s proposed Homeland Security Agency as a ramshackle, hastily conceived outrage to constitutional protections, a way of undercutting the hard rights of federal workers, all in a mission thus far entirely undefined. Byrd made particular reference to Bush’s contemptuous dismissal of criticism of the proposed Agency as Lilliputian. The venerable, but frisky senator riposted by deriding Bush as a Caesarist Gulliver impatient with the restraints of democratic constitutional government.

In another speech Byrd gave Bush some derisive whacks on the topic of his warmongering against Iraq: “The president was dropping in the polls and the domestic situation was such that the administration was appearing to be much like the emperor who had no clothes.” Byrd described the coming of “the war fervor, the drums of war, the bugles of war, the clouds of war.”

“I sat in on some of the secret briefings,”, Byrd said, “and nobody from the administration has been able to answer the question: Why now?”

A few days later in San Francisco another prominent Democrat, Al Gore, lacked Byrd’s fizz but still wagged an admonitory finger at Bush. Gore’s weekend speech to the Commonwealth Club was widely billed as anti-war. Gore did issue some strong language denouncing Bush’s onslaught on the freedoms guaranteed by the Constitution. Beyond that the speech was in fact a measured, fairly well-written advisory on the pretenses and postures appropriate to the world’s premier imperial power.

Gore echoed Henry Kissinger in saying that an attack on Iraq had to be properly justified, not by bluster about a “regime change”, and by hot talk about America’s right to wage “preemptive war”, but by traditional rhetorical escalation within the grand tradition of such rationales, stretching back to the dawn of the Cold War.

There’s probably not been a president since the Second World War held in such low international esteem as Bush. Mark how Gore felt it safe to play on this theme in his San Francisco speech. Six, even three months again, Gore would never have taken such a risk: “In just one year,” he said, “the President has somehow squandered the international outpouring of sympathy, goodwill and solidarity that followed the attacks of September 11th and converted it into anger and apprehension aimed much more at the United States than at the terrorist network.”

If the economy continues to slide, Bush and his circle will face a truly desperate gamble, trying to figure whether a $200 billion war on Iraq will save them, or just plunge them into the mother of all messes.


Alexander Cockburn’s Guillotined! and A Colossal Wreck are available from CounterPunch.

More articles by:

2016 Fund Drive
Smart. Fierce. Uncompromised. Support CounterPunch Now!

  • cp-store
  • donate paypal

CounterPunch Magazine


Weekend Edition
October 21, 2016
Friday - Sunday
John Wight
Hillary Clinton and the Brutal Murder of Gaddafi
Diana Johnstone
Hillary Clinton’s Strategic Ambition in a Nutshell
Jeffrey St. Clair
Roaming Charges: Trump’s Naked and Hillary’s Dead
John W. Whitehead
American Psycho: Sex, Lies and Politics Add Up to a Terrifying Election Season
Stephen Cooper
Hell on Earth in Alabama: Inside Holman Prison
Patrick Cockburn
13 Years of War: Mosul’s Frightening and Uncertain Future
Rob Urie
Name the Dangerous Candidate
Pepe Escobar
The Aleppo / Mosul Riddle
David Rosen
The War on Drugs is a Racket
Sami Siegelbaum
Once More, the Value of the Humanities
Cathy Breen
“Today Is One of the Heaviest Days of My Life”
Neve Gordon
Israel’s Boycott Hypocrisy
Mark Hand
Of Pipelines and Protest Pens: When the Press Loses Its Shield
Victor Wallis
On the Stealing of U.S. Elections
Michael Hudson
The Return of the Repressed Critique of Rentiers: Veblen in the 21st century Rentier Capitalism
Brian Cloughley
Drumbeats of Anti-Russia Confrontation From Washington to London
Howard Lisnoff
Still Licking Our Wounds and Hoping for Change
Brian Gruber
Iraq: There Is No State
Peter Lee
Trump: We Wish the Problem Was Fascism
Stanley L. Cohen
Equality and Justice for All, It Seems, But Palestinians
Steve Early
In Bay Area Refinery Town: Berniecrats & Clintonites Clash Over Rent Control
Kristine Mattis
All Solutions are Inadequate: Why It Doesn’t Matter If Politicians Mention Climate Change
Peter Linebaugh
Ron Suny and the Marxist Commune: a Note
Andre Vltchek
Sudan, Africa and the Mosaic of Horrors
Keith Binkly
The Russians Have Been Hacking Us For Years, Why Is It a Crisis Now?
Jonathan Cook
Adam Curtis: Another Manager of Perceptions
Ted Dace
The Fall
Sheldon Richman
Come and See the Anarchy Inherent in the System
Susana Hurlich
Hurricane Matthew: an Overview of the Damages in Cuba
Dave Lindorff
Screwing With and Screwing the Elderly and Disabled
Chandra Muzaffar
Cuba: Rejecting Sanctions, Sending a Message
Dennis Kucinich
War or Peace?
Joseph Natoli
Seething Anger in the Post-2016 Election Season
Jack Rasmus
Behind The 3rd US Presidential Debate—What’s Coming in 2017
Ron Jacobs
A Theory of Despair?
Gilbert Mercier
Globalist Clinton: Clear and Present Danger to World Peace
James A Haught
Many Struggles Won Religious Freedom
Kollibri terre Sonnenblume
Dear Fellow Gen Xers: Let’s Step Aside for the Millennials
Uri Avnery
The Peres Funeral Ruckus
Tom Clifford
Duterte’s Gambit: the Philippines’s Pivot to China
Reyes Mata III
Scaling Camelot’s Walls: an Essay Regarding Donald Trump
Raouf Halaby
Away from the Fray: From Election Frenzy to an Interlude in Paradise
James McEnteer
Art of the Feel
David Yearsley
Trump and Hitchcock in the Age of Conspiracies
Charles R. Larson
Review: Sjón’s “Moonstone: the Boy Who Never Was”