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Paul Craig Roberts on the mounting dollar crisis.

"If foreigners take the next step and begin dumping their dollar holdings, there is nothing the U.S. government can do to avert the catastrophe." Roberts explains the options. Thomas Naylor separates post 9/11 hysteria about terrorist money smuggling from the realities of Islamic charity today. Alexander Cockburn: cut war-enabling Democrats in Congress no slack! Remember, we are funded solely by the subscribers to the print edition of CounterPunch. Please support this website by buying a subscription to our newsletter, which contains fresh material you won't find anywhere else, or by making a donation towards the cost of this online edition. Remember contributions are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now

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Today's Stories

January 17, 2007

Franklin Spinney
Why Time is not on Bush's Side

John Ross
Oaxaca's Rising: Vibrant as the Paint on the Walls

Susan George
Can World Trade Ever Be Fair? Back to Keynes!

Paul Craig Roberts
Attacking Iran: What's In It For Bush

Joshua Frank
Obama and the Middle East

David Lindorff
Towards Oil at $200 a Barrel

January 16, 2007

Col. Sam Gardiner
Escalation Against Iran

Marjorie Cohn
Stimson's Outrageous Threat

Saul Landau
Gore Vidal in Havana: Part 2

Ron Jacobs
Welcome Back to 1965

Susan Block
From Snowjob to Blowjob

Ken Couesbouck
Year of the Pig

Website of the Day
Amazon's Hit on Jimmy Carter

January 15, 2007

Roger Morris
Another War the Voters Hoped to End

Paul Craig Roberts
Bush Must Go

Kathy Kelly
Umm Heyder's Story

William Blum
The Anti-Empire Report

Ralph Nader
The Class War's New Map

Saul Landau
Gore Vidal In Havana

Website Of the Day
Building Bridges Between Jew and Arab

January 12 / 14, 2007

Alexander Cockburn
Nomads Beware!

Patrick Cockburn
"21,500 More Troops": Will America Ever Leave Iraq?

David Rosen
Bush's Domestic Sex Policy: the Teen Abstinence-Only Crusade

William S. Lind
Less Than Zero

Laith al-Saud
The Ironies of Bush and Iraq

Paul Craig Roberts
Surge and Mirrors: What Bush Really Said

John Ross
Celebrating the "Sum of the World" in Chiapas

George Ciccariello-Maher
The Case of Venezuela's RCTV: Not About Free Speech

Christopher Brauchli
How to Avoid an IRS Audit: Become a Millionaire!

Robert Buzzanco
Rogue State, Redux

Evelyn Pringle
The Secrets in Eli Lilly's Cabinet

Peter Rost, MD.
Promises, Promises: Playing Politics with Drug Reimportation

Mike Whitney
Baghdad Crackdown

Yifat Susskind
Beyond the Surge: Demanding an End to Bush's Wars

Saul Cohen
Latin America's Real Mr. Danger: Negroponte's Latest Gig

Missy Beattie
A Day of Action and Questions

Stephen Lendman
Holiday Hypocrisy

Website of the Weekend
Bruegel on Bush War Plan

 

January 11, 2007

Ismael Hossein-Zadeh
The Profits of Escalation

Paul Craig Roberts
Carter's Inconvenient Truths

Kathy Kelly
Refugee Dreams

Dave Lindorff
Blood for Face

Jeff Leys
The War Widens

Richard W. Behan
Barrels and Bodies

Col. Douglas MacGregor
Surging Right Into Al-Sadr's Hands

Website of the Day
An Explanation from Google

Speech of the Day
Is There Even One Politician Alive Who Could Give This Speech?


January 10, 2007

Peter Linebaugh
A Walk in Oaxaca

Robert Fantina
Punishing Deserters: Prosecution or Persecution?

Patrick Cockburn
Why Troop Escalation Won't Bring Peace to Iraq

Paul Craig Roberts
Distracting Congress: Troop Escalation and Iran

Col. Dan Smith
Why U.S. Policy is Failing

Ben Tripp
The Politics of Bad Karma

Evelyn Pringle
How the FDA Protects Big Pharma

Ron Jacobs
Coalition of the Lunatics: Trying to Create the Next World War

Mike Ferner
If Not Now, When?

Dave Zirin
Judgment of the Juiced: Why McGwire Wasn't Elected to the Hall of Fame

Website of the Day
Revolting Students!

Bootleg of the Day
Bob Dylan: Live at Scotia Bank Place


January 9, 2007

R. T. Naylor
The Somalian Labyrinth

Jonathan Cook
Israel's Purging of Palestinian Christians

Mike Ely and Linda Flores
The Smithfield Strikers: No Longer Hidden, No Longer Hiding

Joshua Frank
The Democrats and Iran: More Bellicose Than Bush

Norman Solomon
The Headless Horseman of the Apocalypse

Sen. Russell Feingold
An Open Letter to President Bush: So Now You Want to Snoop Through Our Mail?

Joe Allen
Justice for the Omaha Two: Black Power, Racism and COINTELPRO in the Heartland

James T. Phillips
"Lasciate Ogne Speranza, Voi Ch'Intrate": The Hell That is Iraq

Brian Concannon
Resolutions for Haiti

Leonard Peltier
When the Truth Doesn't Matter: 30 Years of FBI Harassment and Misconduct

Website of the Day
Kick Out the Jams, MFers!: Meet the New RRC

 

January 8, 2007

Werther
Why We Fight

Jeff Leys
The Occupation Project: a Campaign of Civil Disobedience to End Iraq War Funding

Paul Craig Roberts
Nuking Iran

Shulamit Aloni
Israeli Apartheid: Sorry, This Road is For Jews Only

Dave Lindorff
The Party of Invertebrates Reverts to Form

Sunsara Taylor
The Democrats' First Day: Same As It Ever Was

Seth Sandronsky
Syndicated Error: George Will and the Minimum Wage

Dr. Susan Block
Baghdad Cockfight Ends in Snuff Film

Website of the Day
Watch CounterPuncher Sunsara Taylor Take on Bill O'Reilly!


January 6 / 7, 2007

Alexander Cockburn
The War and the NYT

Franklin C. Spinney
Stalingrad on the Tigris

Paul Craig Roberts
The Urge to Surge

Ralph Nader
Democrats in the Spotlight

Walden Bello
Globalization in Retreat?

Marleen Martin
The Needle and the Damage Done: Tortured in the Death Chamber

Brian Cloughley
We Do What We Like: Return Our Rapist or Else ...

Uri Avnery
The Kiss of Death

Saul Landau
Fidel Castro in the Fields

Ron Jacobs
From Cointelpro to the Patriot Act: a Legacy of Torture

Joseph Nevins
Crimes Against Humanity from Ford to Saddam

William S. Lind
A State Restored? Somalia and 4GW

Gary Leupp
Attention John Conyers: Impeach the President!

Elisa Salasin
Bringing Life to Numbers

George Ciccariello-Maher Beyond Chavistas and Anti-Chavistas: Deepening the Bolivarian Revolution

Stefan Wray
Confronting Recruiters: the Story of the Bush Street Raiders

Michael Leonardi
Toward an International Moratorium: Italy's Crusade Against the Death Penalty

Richard Rhames
Reality TV: Triumph of the Thugs

Jeffrey St. Clair
Playlist: What I'm Listening to This Week

Barbara LaMorticella
Two Poems

Website of the Weekend
FBI Witch Hunts

Song of the Weekend
End Times: a Soundtrack


January 5, 2007

Jorge Mariscal
Growing the Military: Who Will Serve?

John Walsh
Clash of the Elites: Beltway Insiders vs. Neo-Cons!

Christopher Brauchli
The Great Relaxer: Bush and Federal Regulations

Travis Sharpe
No More New Nukes, Please

Tom Barry
Hawk for Hire: Roger Noriega's New Gig

Linda Schade / Kevin Zeese
Americans Voted for Peace: Has the New Congress Already Let Them Down?

Tiffany Ten Eyck
Workers' Centers and Unions: a New Alliance

Mahmoud El-Yousseph
A Challenge to Pelosi

Lucinda Marshall
3003 Funerals: "And They're Still Burying Ford!"

Website of the Day
Van the Man: Warm Love


January 4, 2007

Patrick Cockburn
The Martyrdom of Saddam Hussein

Winslow T. Wheeler
A Guide to Earmarks: Will the Democrats' Reforms Do Anything to Curb Pork Barrel Spending?

M. Shahid Alam
Has Regime Change Boomeranged?

Raed Jarrar
So This is Plan B? The US Attack on Saleh Al-Mutlaq's Headquarters

Bert Sacks
Can the US Legally Kill Iraqi Children?: a Challenge to the Supreme Court

Kathy Rentenbach
Report from Oaxaca

Stephen Fleischman
The Rain of Riches: Bonuses, Then and Now

George Bisharat
Carter's Truths

Peter Rost, MD
Hail the Hangman, Jail the Cameraman!

Evelyn Pringle
Can Eli Lilly be Held Criminally Liable for Zyprexa?

Website of the Day
Courage to Resist

 

January 3, 2007

Kathy Kelly
Wrapped Around a Bullet

Paul Craig Roberts
His Last Hurrah: Bush Cuts and Runs from Reason

William Johnson
No Worker is Illegal: SEIU Members Push Their Union to Change Its Policy on Immigration

Stan Cox
Under a Brown Cloud: Money vs. the Monsoon

Trita Parsi
A Lose-Lose Situation with Iran

Declan McKenna
Ireland's Slavish Hostility Toward Cuba

Joe Bageant
Dispatch from the Chinese Landfill

Nicola Nasser
Somalia: New Hotbed of Anti-Americanism

Missy Beattie
Dead Wrong

Website of the Day
Pharmed Out


January 2, 2007

Michael Watts
Oil Inferno

Amina Mire
Return of the Warlords: Death and Destruction for Somalis

James Brooks
Pushing the Wedge in Palestine

Alevtina Rea
The Tyrant is Dead! Long Live ... ?

Al Krebs
Global Food Security: a Call to Action

Peter Rost
Invitation to a Hanging: the Saddam Hussein Execution Video

Niranjan Ramakrishnan
A Deadly December

John Stanton
Appetites for Destruction

Website of the Day
Out Now: Petition

 

January 1, 2007

Patrick Cockburn
Iron Man, Tin God: the Meaning of Saddam Hussein

Uri Avnery
What Makes Sammy Run?

Joshua Frank
Eliot Spitzer's Constitutional Hang Up: Architect of New York's Patriot Act

 

December 30 / 31, 2006
Weekend Edition

Alexander Cockburn
2006, Hard to Call It Vintage, But 2007 Could Finally Be Bobby Byrd's Year

Patrick Cockburn
Iraq 2006: a Nation Soaked in Blood Tears Itself Apart

Paul Wolf
Dying for Our Sins: A Lawyer for Saddam Describes How His Execution on the First of Eid May Transform Him Into a Martyr

Manuel Garcia, Jr.
Executing Saddam, Protecting the Rackets

Tariq Ali
Saddam at the End of a Rope

Paul Craig Roberts
The New Dark Age: Official Lies, Dogma and Unaccountable Power

Douglas Valentine
At the End of My Rope: Hanging With Saddam

Brian M. Downing
The New Iraq Policy: Escalation

Michael Donnelly
Injustice in Black and White: the Duke Non-Rape Case

Stephen Lendman
Did Sharon Order the Assassination of Arafat? The Revelations of Uri Dan

Fred Gardner
Comes Now the Ghost of "Decrim:" Nixon and Marijuana

Bailly / Caudron / Lambert
Who Owns Ikea?: the Opaque Legacy of Ingvar Kamprad

Ralph Nader
The Prospects for Progressive Politics

Nick Dearden
The War on Terror Hits Africa

Elizabeth Weill-Greenberg
The Third Degree: an Interview with AC Thompson on the Origins of the CIA's Secret Rendition Flights

Missy Beattie
In Harm's Way: How Our National Coward Describes War

Ron Jacobs
Sigh of the Oppressed: Religion and Politics

Dan La Botz
Defend Illegal Immigrants: Help Them! Harbor Them!

Andrew Wimmer
An Act of Contrition: the Peace Movement in 2007

Dr. Carol Wolman, MD
Psychiatrist: Impeach Bush for Good of Country

Martha Rosenberg
New Year's Resolutions for Big Pharma

Dick J. Reavis
News Before It Happens: Bush's 2007 MLK Day Speech

Jeffrey St. Clair
Listening to James Brown and His Followers

Poets' Basement
Grima, Curtis, Davies, Orloski and Engel

Website of the Weekend
Charlie Fowler's Photolog: a Life at Altitude

Music Video of the Weekend
"We're Winning the War on Drugs!"


December 29, 2006

Bill Quigley
A Tale of Two Sisters: Why is HUD Spending Tens of Millions in Katrina Money to Bulldoze 4,534 Public Housing Apartments in New Orleans?

Norman Finkelstein
The Dershowitz Treatment

John Borowski
Curb Your Environmentalism: Laurie David and Me

Abid Mustafa
The Re-Talibanization of Afghanistan

Greg Moses
World Responds to Palestinian Family's Jailing Despite Media Blackout

Uri Cohen
Stand Up for Herod: a Seasonal Story of Ancient Palestine

Bailly / Caudron / Lambert
The Secrets in Ikea's Closet

Website of the Day
Justice for New Orleans

 

December 28, 2006

Norman Finkelstein
The Ludicrous Attacks on Jimmy Carter's Book

Anthony Cowell
Highway Robbery: Privatizing New Jersey's Toll Roads

John Ross
Gateway to the Next Mexican Revolution?

Hilaria Cruz
I'm Going to Stay Right Here: Story of a Oaxacan Prisoner

Greg Moses
Palestinian Immigrant Jailings in Texas

Brittany Bond
The Blood Trail of Luis Posada Carriles, Washington's Preferred Terrorist

Website of the Day
Godfather of Soul and Father of Funk

 

December 27, 2006

Alexander Cockburn
Farewell to Our Greatest President: Adieu, Gerald Ford

Faruq Ziada
Is There a Sunni Majority in Iraq?

Christopher Brauchli
Burning EPA's Books: What They Don't Want You to Read Might Save Your Life

Michael Ortiz Hill
Journey to Vietnam: Dare We Not Say Genocide?

Nikolas Kozloff
Saving Caracas

Mark Schneider
Why Hope? Reasons for Optimism


December 26, 2006

Peter Stone Brown
James Brown: Please Don't Go

Tito Tricot
Chile: the Ghosts of Torture

Gary Leupp
Cowboys Differ on Iran Attack: Cheney/Bush vs. the Baker Commission

John V. Walsh
Dershowitz vs. Carter in Beantown: Peace Movement AWOL, Again

Reza Fiyouzat
Red Christmas: Why Santa Was Hot in China This Year

Ron Jacobs
The Golem: a Conversation with Marc Estrin

Website of the Day
JB: Prisoner of Love


December 25, 2006

Saul Landau
A Jeep Trip with Fidel

Lang / McGovern
To Surge or Not to Surge?

Michael Dickinson
Should Stupid Thoughts Be Crimes?: Deny Santa If You Will, But ...

Website of the Day
James Brown, RIP


December 23 / 24, 2006

Marjorie Cohn
What's Going On?

Jeffrey L. Gould
The Capital of Salvadoran Memory: El Mozote After 25 Years

Diane Christian
The Rape of Iraq

William Loren Katz
From the Raid on "Fort Negro" to Iraq: Lessons from the First US Invasion

Greg Moses
This War Can't be Made Right by Winning

M. Shahid Alam
An Islamic Civil War: Chaos by Design?

Fred Gardner
Exposé as Inoculant: HRT, Zyprexa, Lilly and the Press

Dave Lindorff
Crime of the Century

Azmi Bishara
Ways of Denial

Ralph Nader
The BCS: a Monopoly on College Football

Seth Sandronsky
Fiscally Imperiled Social Security?

William Hughes
Cop Assaults Activists at Lockheed Protest

Ron Jacobs
Making Stones Weep

Jeffrey St. Clair
Playlist: What I'm Listening to on New Year's Eve

 

December 22, 2006

David Rosen
Bush's Foreign Sex Policy: Imperialism's Second Front

Christopher Brauchli
When the Secret is the Question: Secret Prisons, Top Secret Interrogations

John Ross
Flashlights in the Tunnel of Hate

J.L. Chestnut, Jr.
Political Sell-Outs in Black and White

Rahul Mahajan
Dennis Kucinich: Maverick or Stalking Horse?

Arthur Neslen
Provoking Civil War in the Occupied Territories

Peter Rost, MD
The Secrets of His Success: Fired Pfizer CEO Walks Away with $198 Million

Website of the Day
10 Ways to Change the World in 2007


December 21, 2006

Rosa Mariam Elizalde
An Interview with Gore Vidal: "I am Jealous of Cuba"

Arundhati Roy
Breaking the News

Brian Cloughley
Poppies Rising: Afghanistan's Drug Catastrophe

Daniel White
Jimmy Carter in Austin: Time to Come Clean on the Shoot Down of That Itavia DC-9

John V. Whitbeck
On Israel's Right to Exist

Sam Smith
Still Smearing Ralph Nader for 2000

Paris Reidhead
GM Ice Cream: Something's Fishy in Your Good Humor Bar

Kevin Wehr
Denying Disaster: Katrina and the Case for Impeachment

Website of the Day
Pesticides and Amphibians: a Vital New Database


December 20, 2006

Gabriel Kolko
Rumsfeld and the American Way of War

Winslow T. Wheeler
The Pentagon Measures the Chaos in Iraq

Tariq Ali
The War is Lost

Saree Makdisi
Israel, Apartheid and Jimmy Carter

Bruce Jackson
Saying "Oh!": John Mohawk and the Power to Make Peace

Dave Lindorff
Democrats Walk Into a Bush Trap on Iraq

Leslie Radford
The Winter Harvest of the South Central Farmers

Dave Jansson
Divided We Stand, United We Fall: Secessionists Confront the Empire

Johnny Barber
Jesus is a Terrorist

Website of the Day
Is It for Freedom?


December 19, 2006

Alexander Cockburn
Democrats Prepare to Fund Longer War

Jonathan Cook
End of the Strongmen

Greg Moses
Globalized Gulag: Palestinian Refugees and Children Held in Hutto, TX Jail

Sean Penn
Georgie, There's a Crowd Downstairs

Dave Lindorff
Innocents Abroad: Cracking Down on Gitmo Detainees Despite Overwhelming Evidence Most Are Not Terrorists

Ralph Nader
Going Postal

Laura Carlsen
Latin America's Pink Tide?

Carlos Villarreal
The Well is Poisoned: Victory Requires an Immediate Pull-Out

Website of the Day
Chuck Spinney on the Pentagon


December 18, 2006

Luis J. Rodriguez
En Lak Ech: Chicanos, Mayans and Mel Gibson

Norman Solomon
Washington Refuses to End the War: Powell, Baker, Hamilton--Thanks for Nothing!

Uri Avnery
Lebanon: War Without a Plan

Ron Jacobs
More Troops, More Body Bags

Phil Gasper
Afghanistan: Bush's Other War Unravels

Behrooz Ghamari-Tabrizi
Iran's Elections: The World Isn't Florida and Bush Isn't Its Supreme Leader

William Blum
The United States of Punishment

Jim Goodman
So What's the Big Deal If Wal-Mart Makes a Mistake?

James Brooks
Talking Surge: Let's Kill Some More Before We Go

Maria C. Khoury
Walking Into the Art World: Designing a Palestinian Academy for the Arts

Website of the Day
Got Powell


December 16 / 17, 2006
Weekend Edition

Vijay Prashad
A Perilous Way to Socialism

Saul Landau
Filming Fidel

Anthony Arnove
The US Occupation of Iraq: Act III of a Tragedy of Many Parts

Paul Cantor
The Puppet and the Puppeteer: Pinochet and Kissinger

Annie Nocenti
Baluchistan's Fight: The Khan of Kalat Gathers the Tribes

Nicole Colson
Hard Times on the Killing Floor: Smithfield's Rotten Record

Stephen Gowans
Tehran's Holocaust Conference

Jordan Flaherty
A Catastrophic Failure: Foundations, Nonprofits and the Second Looting of New Orleans

Fred Gardner
Dustin Costa Faces 15 to Life

P. Sainath
There's No Such Thing as a Free Cow

Seth Sandronsky
The Democrats and Social Security: Watch What the Party Says and Does

Nadia Hijab
An AIPAC Shot Across Baker's Bow?

Deb Reich
Dear Santa, (Or Someone): Greetings from the Occupied Holy Lands

Susie Day
Cops Shoot Another Rich White Man!

Albert Wan
Why Does It Take 50 Bullets?

Missy Beattie
Will the Next Leader Stand Up? Please!

Martha Rosenberg
Kicking the Wyeth Habit Saves Women's Lives

Lee Ballinger
The Devil's Highway: Clinton, Border Checkpoints and the Deaths of the Yuma 14

Michael Dickinson
Kingdom of Fear

Jeffrey St. Clair
Live/Evil: Listening to Miles Davis

Poets' Basement
Davies, Buknatski and Ford

Website of the Weekend
"I Heard It Through the Grapevine"

 

December 15, 2006

Eliza Ernshire
Palestinian "Civil War" and the Israeli Chocolate Ration

Virginia Tilley
What Are You Going to Do Now, Israel?

Mike Ferner
Roll Call for the Choir: If They Vote for War, Occupy 'Em!

John Ross
Mad Mel's Mayan Apocalypse

Fred Wilhelms
The Flip Side of Ahmet Ertegun: Where Did You Get Those Shoes?

Kevin Zeese
Dennis Kucinich's Strange Mission: Can You Be a Real Anti-War Candidate in a Pro-War Party?

David Severn
Social Engineering Begins at Home: Jeffrey Skoll, Billionaire Philantropist

Dave Lindorff
Sen. Tim Johnson Death Watch: Senate Gridlock May Be Best Outcome

Sunsara Taylor
As American as Shopping and Torture

Website of the Day
June 2, 2004: When Iraq Was There For The Looting

 

December 14, 2006

Jonathan Cook
The Recognition Trap

Riz Khan
An Interview with Jimmy Carter

Jason Hribal
Kasatka, the Sea World Orca

Pennick / Gray
The Plight of Black Farmers: Racism in the US Farm Program

Richard Levins
That Embezzled Anti-Castro Money

Pat Williams
The College Crisis: Universal Access, Student Loan Debts and Pell Grants

Peter Rost, MD
Simply Irresistible: Do Women Prefer Bad Boys?

Website of the Day
The Sound of Rummy

 

December 13, 2006

Patrick Cockburn
Iraq is Beyond Repair

Greg Moses
The Dixie Chicks Come Home to Roost

Elizabeth Schulte
Hungry for the Holidays

Joshua Frank
Death By Coke

Debra Eschmeyer
Corporations Control Your Dinner

Leon Hadar
Baker's Rescue Mission: Too Little, Too Late

Peter Rost, MD
I've Been a Very Bad Boy

Margaret Knapke
Mow bé and Malachi, Presenté!

Reza Fiyouzat
Are Cows Free?

Fred Wilhelms
A Last Minute Appeal: If You Know One of These Musicians Let Them Know They Are Owed Money--By Friday!

Website of the Day
The Crimes of Augusto Pinochet


December 12, 2006

Fernando A. Torres
The Last Man of the Junta: an Open Letter to Kissinger from One of Pinochet's Political Prisoners

Paul Craig Roberts
America's Injustice System is Criminal

Stephen Soldz
Abusive Interrogations

Uri Avnery
Baker's Cake

William S. Lind
Knocking Opportunity: From Vulcans to Vultures in Iraq

Missy Beattie
Convicted for Our Convictions: Trespassing for Truth at the UN

Dave Lindorff
The 35-Year Long Scream: Torture, Impeachment and a Vietnam Vet's Tears

George Pyle
Our Perverse Farm Plan: Where Christmas Comes Every Five Years

Norman Solomon
Is the USA the Center of the World?

Website of the Day
Citizens' War Tribunal

 

December 11, 2006

Virginia Tilley
Banning Mandela

Roger Burbach
The Condor Model: the Atrocities of Pinochet and the US

Col. Douglas MacGregor
There's Only One Option Left: Leave!

Fawwas Traboulsi
Lebanon on the Brink

Ron Jacobs
Death of a Pig: Poetic Justice for Pinochet

Gideon Levy
The Cruel Line into Gaza: Elbow to Elbow, Like Cattle

Mary McGrane
Burning Books at Harvard Law

Bernardo Ruiz
The Disappeared of Oaxaca: a Message from One of the Actors in Apocalypto

Website of the Day
La Cancion de la Unidad

Video of the Day
Killing Castro: Congresswoman as Contract Killer?

 

December 9 / 10, 2006
Weekend Edition

Alexander Cockburn
Liberal Consensus for More Troops in Iraq

Sen. Gordon Smith
Out of Iraq: Cut and Run or Cut and Walk

Greg Grandin
Jeane Kirkpatrick, Mid-Wife of the Neo-Cons

Paul Craig Roberts
How Many More Will Die for Bush's Ego?

Col. Dan Smith
The Vietnamization of Iraq: Inside the Military Training Program

Ralph Nader
The Man from NAM: John Engler's Trail of Destruction

Behrooz Ghamari
The Donkey and the Date: Iran's Upcoming Municipal Elections

Rev. Willliam Alberts
Doing Unto Others: Pastor Haggard and President Bush

James T. Phillips
The James Gang: "Did You Kill Her?"

Bennis / Leaver
A Bi-Partisan Occupation

Dave Lindorff
A Congress of Hucksters and Pipsqueaks

Nikolas Kozloff
Robert Gates and Venezuela: Another Saber Rattler in Latin America

Seth Sandronsky
Activating White Racism

Lucinda Marshall
McKinney and Karpinsky: Silenced for Telling the Truth

Mike Whitney
Something's Gotta Give: James Baker vs. the Lobby

John V. Whitbeck
Recommendation No. 80

Faisal Kutty
Is the Universal Declaration of Human Rights Merely a Western Construct?

Hugh Sansom
Smearing Jimmy Carter: an Open Letter to the New York Times

Robert Gold
My South American Journey: Impunity in Colombia

Boots Riley
Crash and Burn: an Urgent Message from The Coup

Jeffrey St. Clair
Playlist: What I'm Listening to This Week

Poets' Basement
Engel & Buknatski

Website of the Weekend
Alive in Mexico


December 8, 2006

Patrick Cockburn
The Iraq Study Group's Cautious Appraisal

Leutisha Stills
Just How Progressive is the Congressional Black Caucus?

Norman Finkelstein
The Media Lynching of Jimmy Carter

Will Youmans
Mr. Lieberman Comes to Washington: Brookings Hosts an Ethnic Cleanser

Peter Rost, MD
What Went Wrong at Pfizer?

Jonathan Demme
My Friend Bruce Langhorne: a Great Musician Needs Your Help!

Ray McGovern
Senate Democrats Give Gates a Free Pass

Lucinda Marshall
What She Wore

Tariq Ali / Robin Blackburn
The Lost John Lennon Interview

Website of the Day
John Lennon's FBI Files

 

December 7, 2006

Alex Friedman
Rev. Phelps' Hate-Fueled Fanatics Find a Home in the Kansas Prison Industry

Maureen Webb
Risk Scoring and the National Insecurity State

Paul Craig Roberts
Catastrophe Still Awaits

Dave Lindorff
Prosecutor Admits: Mumia Abu-Jamal Had "No True Defense"

Matt Vidal
Drug Pushers, Inc.: Power and Profit in the Legal Drug Trade

Yifat Susskind
Looking for a Few Good Principles: What Should be Done in Iraq

Rodriguez / Jones
NYPD's Death Squads: From Diallo to Sean Bell

Website of the Day
2006, Remixed


December 6, 2006

Robert Bryce
Omitting the Obvious with James Baker: From the S&L Crisis to the Iraq Study Group

William S. Lind
The Boomerang Effect: When Will the First IED Strike Cincy?

Zoe Blunt
The Clearcut Truth About the Great Bear Rainforest

Corporate Crime Reporter
The New Conventional Wisdom: Prosecute Individuals, Not Corporations

Amira Hass
A Regrettable Indifference: Israel's Treatment of Palestinian Prisoners

Richard W. Behan
The Surreal Politics of Premeditated War

Sophie McNeill
Why Hezbollah is Broadcasting Sunday Mass


December 5, 2006

Virginia Tilley
Apartheid Israel: a Beacon of Hope?

Sharon Smith
The New Washington Consensus: Blame the Victims in Iraq

Joe Bageant
Somewhere a Banker Smiles

Ron Jacobs
A War Washington Can't Win

Norman Solomon
Media Consensus, Stay in Iraq!

Mike Whitney
Rumsfeld's Final Snowflake: "I Was Just About to Change Everything ... "

Derrick O'Keefe
Regimes Unchanged: Chavez's Victory Strengthen's Cuba

Julian Assange
The Road to Hanoi

Missy Beattie
Bush, the Unhappy Helmsman

Website of the Day
Lessons of Suez and Iraq

 

December 4, 2006

Alexander Cockburn
Gaza and Darfur

George Ciccariello-Maher
Tears of the Escualidos: Election Diary, Venezuela

Ray McGovern
Lame Ducks, Hold That Nomination!: a CIA Insider's Take on Gates

John Ross
Repression on the Menu in Mexico

Walden Bello
Hurricane Milton: Friedman, Bayonets and Markets

Peter Rost, MD
Pfizer's Clueless Executives

Stephen Lendman
The Withering of the Bush Dynasty

Gideon Levy
This Ceasefire will Go Up in Flames

Website of the Day
The "Babes" of Hizbullah?

 

December 2 / 3, 2006
Weekend Edition

Barucha Calamity Peller
The Dirty War of Oaxaca

Paul Craig Roberts
Is Bush Sane?: When Denial Goes Pathological

Ralph Nader
The Big Boys of Financial Crime

Winslow T. Wheeler
Committee of Enablers: Is Gates Fit to Serve? Are the Senators?

Amira Hass
The Checkpoint Generation

Maymanah Farhat
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January 17, 2007

The WTO Takes a Hit

Can World Trade Ever Be Fair?
Back to Keynes!

By SUSAN GEORGE

THE Doha agenda, launched at the World Trade Organisation (WTO) ministerial meeting in the Qatari capital in 2001, has collapsed, and a good thing too. Although the WTO director general, Pascal Lamy, is trying desperately to resuscitate the agenda, the opponents of Doha maintained throughout the negotiations that no deal was better than a bad deal. The round, from the beginning until the final fruitless exchanges in 2006, was destined to benefit the largest farmers, to destroy nascent or fragile industries throughout the South and to open public services everywhere to corporate takeover through the General Agreement on Trade in Services (GATS).

The collapse may only be temporary (in the first days of 2007 there were prospects for its revival) and it does not mean that the basic premises of the WTO, established in 1995, have been abolished. The Agreement on Agriculture, the General Agreement on Tariffs and Trade (GATT) concerning industrial goods, the GATS and some 20 or more other instruments under the WTO umbrella still stand. But their application has been seriously slowed down and we now have a reprieve or at least a window of opportunity.

The failure of the round causes many people to ask: “What should we put in the place of Doha?” You could respond that this is like asking “What should we put in the place of cancer?”, the instinctive answer to which is “nothing”; however in the case of trade it would be unwise to answer so. The absence of cancer is to be desired but the absence of an international trade regime just leaves the field open to bilateral and multilateral deals which are always even more invasive and dangerous for weaker partners than is the WTO.

Rather than allowing the usual suspects — the most powerful governments following the lead of their transnational corporations — to chart the future of trade relations, it is time to return to the era after the Second World War when there was a major restructuring of international relations. Even the World Bank and the International Monetary Fund were welcome institutions then and for a while played a useful role in the South as well as in the war-devastated North: only in the past 25 years did they change their missions drastically.

The economist John Maynard Keynes came to the postwar table with an innovative project for the future of world trade, which he called the International Trade Organization (ITO), supported by an international central bank, the International Clearing Union (ICU). The ICU was meant to issue a world currency for trade, the bancor. Why the ITO and the ICU never materialized, and what would have changed if they had, forms a sobering story from which we can learn. It tells us that, in a rational world, it would be possible to construct a trading system serving the needs of people in both North and South.

With an ITO and an ICU, we could have had a world order in which no country could run a huge trade deficit (the United States deficit stood at $716bn in 2005) or the huge trade surplus of contemporary China. Under such a system, crushing third world debt and the devastating structural adjustment policies applied by the World Bank and the IMF would have been unthinkable, although the system would not have abolished capitalism. If we could resurrect Keynes’s concept, another world really might be possible: he figured out how to make it work more than 60 years ago. His plan would have to be dusted off and tinkered with, but its core remains relevant.

Why did it fail?

Before explaining the rules it would have established, we should consider why the ITO was never set up. The usual explanation is that the US blocked it, which is true but too facile. There were other political reasons. The US and Britain began discussing the ITO agreement long before the war was over, and Keynes had already floated the idea in 1942. He chaired the Bretton Woods monetary conference in July 1944, where it emerged as the official British position. By that time the US, doubtless following the opinions of its corporations, was less enthusiastic and its chief negotiator, Harry Dexter White, pushed instead for the World Bank and the IMF . The US Congress subsequently approved both institutions, sometimes referred to as the “Bretton Woods institutions”, but the ITO was not yet ripe for ratification.

The United Nations was born in 1945. Its economic component, the Economic and Social Council (Ecosoc) received postwar proposals from both the US and Britain for establishing an ITO. Ecosoc convened the UN Conference on Trade and Employment in 1946 to examine them .
Before this conference could meet, the US adopted a two-track approach to international trade. It convened a meeting of 22 other UN member countries, which were also anxious to begin trade liberalisation as soon as possible. They came together in a parallel forum to draft the General Agreement on Tariffs and Trade as a temporary measure, or so it was thought at the time.

They signed the GATT in 1947 and it entered into force in 1948. Because the participants all expected it to become a part of the ITO Charter, which would be a more permanent instrument, they included little institutional machinery in the GATT. Soon after, the ITO charter was at last completed and approved at the Havana Conference of 1948; the text is now generally referred to as the “Havana Charter”, although its formal title is Charter for an International Trade Organisation .

Why did the ITO ultimately fail? Much of its political support had evaporated. Keynes died in 1946; the US Secretary of State, Cordell Hull, also a champion of the ITO, was no longer in government; the enthusiastic, “let’s refashion the world” moment of Bretton Woods had passed. The US State and Treasury Departments were busy with the Marshall Plan and with US reciprocal trade agreements with individual countries. The innate isolationism of many Americans and their Congressional representatives played a part. Much of the US business community also opposed the ITO, some companies because it was too protectionist, others because it was not protectionist enough. There was a tough US presidential election in 1948 and neither political party wanted to rock the boat with a controversial international agreement. The Cold War began and the ITO was of secondary interest to US politicians and bureaucrats.

Once re-elected, President Harry Truman did half-heartedly place the ITO (“Havana”) Charter before Congress in 1950, but the lawmakers never bothered to vote on it. The GATT survived because it was still seen as temporary and contained almost no constraining institutional arrangements. It was successful in its own way, managing over the decades to reduce industrial tariffs from an average 50 per cent  to 5 per cent, although steep tariff peaks remained in force in many countries. The GATT sponsored eight trade liberalization rounds, the last of which, the Uruguay Round, drafted the far more ambitious WTO agreement. The GATT, revised and updated, became the GATT 1994 within the framework of the WTO. Postwar trade arrangements therefore bore almost no resemblance to Keynes’s hopes. The present World Trade Organisation is even further removed from his vision.

The Havana charter

Whereas the WTO has no connection to the UN and does not recognise any UN legal instruments, including the Universal Declaration of Human Rights of 1948, the ITO Charter began by recognizing the UN Charter. It placed full employment, economic and social progress and development among its objectives. Its second section was entirely devoted to means of avoiding unemployment and under-employment. Unlike the WTO, which never mentions the subject, the ITO insisted on fair labor standards and the improvement of wages and working conditions; it mandated cooperation with the International Labor Organisation.

The international trade union movement spent the first six years of the WTO’s existence trying to obtain a “social clause”, which was only a much watered-down version of the principles already included in the ITO. The unions finally gave up after the WTO Doha Ministerial meeting in 2001.
The ITO Charter formulated plans for sharing skills and technology; it specified that foreign investment could not be used as a pretext for intervening in the internal affairs of member countries. Poorer, weaker countries were specifically authorized to use government aid, intervention and “protectionism” for their reconstruction and development: the charter specified that “assistance in the form of protective measures is justified”.

Special assistance “designed to promote the development of a particular industry for the processing of an indigenous primary commodity” was especially encouraged. Many provisions of the charter also dealt with primary commodities and were mindful of protecting small-scale producers. The ITO allowed government funds to stabilize commodity prices from year to year and recommended the “conservation of exhaustible natural resources”. Its measures concerning commodities and encouraging negotiations among member countries that produced them, if taken together, led to a surprising conclusion. The ITO, without actually saying so, promoted Opec-like arrangements — producer cartels — for primary products, and local processing to add value.

Instead of seeing such rules produce benefits we have witnessed an inexorable decline in commodity prices. According to the UN Conference on Trade and Development (Unctad), average yearly decreases in these prices between 1977 and 2001 were 2.6 per cent for foodstuffs; 5.6% for tropical beverages; 3.5 per cent for oilseeds and oils. Only metals, which, unlike food and beverages, are never produced by smallholders, did slightly better at an annual decrease of 1.9 per cent, although this still reflects a considerable drop in revenues for producer countries.

The Havana Charter specifically permitted aid to national industries through subsidies or government procurement. It even reserved some screentime for national cinema. It allowed countries to protect local agriculture and fisheries. One of the biggest battles in the Doha round, and the immediate cause for its failure, was over agricultural export subsidies. The ITO outlawed subsidizing products on foreign markets “at a price lower than that charged to a domestic buyer”. Countries in financial difficulty were allowed to restrict imports, but must do so proportionally, allotting fair quotas to previous suppliers.

The ITO’s institutional arrangements were simple and democratic. Every state initially invited to the Unctad conference was to be a member; future members were to be approved by this body. Each member had one vote (unlike the World Bank and the IMF where votes are proportional to financial contributions and the US can block any important decision). A member in arrears in its contributions to the UN lost its vote; in the ITO, the US would not have been a voting member in most years. As for governance, ITO members selected an executive board of 18 members; eight from countries of “major economic importance and share in world trade”, 10 representing different regions and types of economies. Votes should be by simple majority or in some cases, two-thirds majority. Disputes should preferably be settled through consultations but, if these did not succeed, any member could refer a dispute to the board, which could authorise the member harmed to take retaliatory measures.

Financing trade

These attempts to establish a new order for trade were undertaken in the context of a world still struggling to emerge from the ruins of war. Nobody except the US had any money. The Marshall Plan was one part charity to nine parts self-interest — the best way to kick-start trade between the US and Europe — otherwise the US would have been doomed to produce more than it could consume and would have had no one to whom it could sell its products.

In these circumstances, how could everyone get off their knees and begin to produce and trade again? Keynes formulated his solution in the early 1940s. Since the war was partly the result of beggar-my-neighbour trade policies, with everyone engaging in cut-throat competition for the same markets, he wanted to make sure no one could hog all the markets and accumulate huge trade surpluses. His solution was the ICU, a new central bank of central banks, which would issue the bancor currency to be used for trade.

Under this system, exports earned bancors and imports spent them. The point was to keep the two in balance so that at the end of the year a country’s accounts with the ICU would be neither in surplus nor in deficit but “cleared” — close to zero. Every country’s currency would be assigned a fixed but adjustable exchange rate relative to the bancor. Keynes’s original thinking perceived that nations with too many bancors would disrupt the system just as much as those with too few— that creditors were just as dangerous to stability and prosperity as debtors.

How could countries be forced to conform and maintain a near-zero balance? The method was ingenious. The ICU, in its role as central bank and issuer of bancors, would allow each country an overdraft facility, just as ordinary banks do for customers. The authorized overdraft would equal half the average value of the country’s trade over the preceding five years. Any country exceeding its overdraft would be charged interest on the difference. Debtors would be charged on their deficits, but the real novelty was that creditors — countries with trade surpluses — would be charged interest on their surpluses. The greater the deficit or surplus, the higher would be the interest rate.

Countries in deficit would be obliged to devalue their currencies to make their exports cheaper and more attractive. Countries in surplus would have to revalue their currencies to make their exports more expensive and less attractive. If a trade-surplus country did not reduce its surplus, the ICU would confiscate everything above the allowed overdraft amount and put it in a reserve fund. Keynes wanted to use this fund to finance a global police force, disaster relief and other measures of interest to all members.

A neat arrangement

It was a neat arrangement. To avoid paying interest or submit to outright confiscation; countries in surplus would race to buy more exports from those in deficit. Those in deficit could sell more and would find it easier to return to equilibrium. Everyone would benefit. Trade would expand, the world would be more prosperous and peaceful, underdeveloped countries would have more funds to invest in development, and it would be impossible to accumulate the debts they have today.

As we know, Keynes did not prevail and the postwar vision was never realized. The World Bank and the IMF have wreaked havoc through their structural adjustment policies, third world debts can never be repaid, and Wall Street now decides the policies of democratically elected governments (as can be attested by Brazil’s president, Luiz “Lula” Inácio da Silva, along with many other leaders of indebted countries). World trade rules do not benefit the poorer members of the WTO and the rich ones have grown more selfish as they have become richer.

In these circumstances, how could the global justice movement help to make fair trade a reality, since the WTO and its disastrous rules already exist? The writer George Monbiot believes that the South could use its $26,000bn of debt as a “nuclear threat” against the world financial system unless it consents to establish an ICU. The South could begin by creating its own, smaller clearing union: perhaps Latin America could launch such a plan. Perhaps a new government in France could put it on the agenda; stranger things have happened. But it is important to realize that we need not reinvent the trade wheel: Keynes did all the work 60 years ago.

Susan George is a writer and president of the administrative council of the Transnational Institute, Amsterdam.

Alexander Cockburn and Jeffrey St Clair write: This article appears in the January edition of the excellent monthly Le Monde Diplomatique, whose English language edition can be found at mondediplo.com This full text appears by agreement with Le Monde Diplomatique. CounterPunch will feature one or two articles from LMD every month.

 



 

 

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