Girl Blog from Iraq... let's talk war, politics and occupation

I think I should post the link in my blog... read it guys and gals...

Girl Blog from Iraq... let's talk war, politics and occupation

http://riverbendblog.blogspot.com/

last post in Girl Blog from Iraq... Baghdad Burning

What happend to this girl blogger from Iraq............

Girl Blog from Iraq... let's talk war, politics and occupation.

Baghdad Burning

... I'll meet you 'round the bend my friend, where hearts can heal and souls can mend...

Monday, October 22, 2007

 
Bloggers Without Borders...

Syria is a beautiful country- at least I think it is. I say "I think" because while I perceive it to be beautiful, I sometimes wonder if I mistake safety, security and normalcy for 'beauty'. In so many ways, Damascus is like Baghdad before the war- bustling streets, occasional traffic jams, markets seemingly always full of shoppers… And in so many ways it's different. The buildings are higher, the streets are generally narrower and there's a mountain, Qasiyoun, that looms in the distance.

The mountain distracts me, as it does many Iraqis- especially those from Baghdad. Northern Iraq is full of mountains, but the rest of Iraq is quite flat. At night, Qasiyoun blends into the black sky and the only indication of its presence is a multitude of little, glimmering spots of light- houses and restaurants built right up there on the mountain. Every time I take a picture, I try to work Qasiyoun into it- I try to position the person so that Qasiyoun is in the background.

The first weeks here were something of a cultural shock. It has taken me these last three months to work away certain habits I'd acquired in Iraq after the war. It's funny how you learn to act a certain way and don't even know you're doing strange things- like avoiding people's eyes in the street or crazily murmuring prayers to yourself when stuck in traffic. It took me at least three weeks to teach myself to walk properly again- with head lifted, not constantly looking behind me.

It is estimated that there are at least 1.5 million Iraqis in Syria today. I believe it. Walking down the streets of Damascus, you can hear the Iraqi accent everywhere. There are areas like Geramana and Qudsiya that are packed full of Iraqi refugees. Syrians are few and far between in these areas. Even the public schools in the areas are full of Iraqi children. A cousin of mine is now attending a school in Qudsiya and his class is composed of 26 Iraqi children, and 5 Syrian children. It's beyond belief sometimes. Most of the families have nothing to live on beyond their savings which are quickly being depleted with rent and the costs of living.

Within a month of our being here, we began hearing talk about Syria requiring visas from Iraqis, like most other countries. Apparently, our esteemed puppets in power met with Syrian and Jordanian authorities and decided they wanted to take away the last two safe havens remaining for Iraqis- Damascus and Amman. The talk began in late August and was only talk until recently- early October. Iraqis entering Syria now need a visa from the Syrian consulate or embassy in the country they are currently in. In the case of Iraqis still in Iraq, it is said that an approval from the Ministry of Interior is also required (which kind of makes it difficult for people running away from militias OF the Ministry of Interior…). Today, there's talk of a possible fifty dollar visa at the border.

Iraqis who entered Syria before the visa was implemented were getting a one month visitation visa at the border. As soon as that month was over, you could take your passport and visit the local immigration bureau. If you were lucky, they would give you an additional month or two. When talk about visas from the Syrian embassy began, they stopped giving an extension on the initial border visa. We, as a family, had a brilliant idea. Before the commotion of visas began, and before we started needing a renewal, we decided to go to one of the border crossings, cross into Iraq, and come back into Syria- everyone was doing it. It would buy us some time- at least 2 months.

We chose a hot day in early September and drove the six hours to Kameshli, a border town in northern Syria. My aunt and her son came with us- they also needed an extension on their visa. There is a border crossing in Kameshli called Yaarubiya. It's one of the simpler crossings because the Iraqi and Syrian borders are only a matter of several meters. You walk out of Syrian territory and then walk into Iraqi territory- simple and safe.

When we got to the Yaarubiya border patrol, it hit us that thousands of Iraqis had had our brilliant idea simultaneously- the lines to the border patrol office were endless. Hundreds of Iraqis stood in a long line waiting to have their passports stamped with an exit visa. We joined the line of people and waited. And waited. And waited…

It took four hours to leave the Syrian border after which came the lines of the Iraqi border post. Those were even longer. We joined one of the lines of weary, impatient Iraqis. "It's looking like a gasoline line…" My younger cousin joked. That was the beginning of another four hours of waiting under the sun, taking baby steps, moving forward ever so slowly. The line kept getting longer. At one point, we could see neither the beginning of the line, where passports were being stamped to enter Iraq, nor the end. Running up and down the line were little boys selling glasses of water, chewing gum and cigarettes. My aunt caught one of them by the arm as he zipped past us, "How many people are in front of us?" He whistled and took a few steps back to assess the situation, "A hundred! A thousand!". He was almost gleeful as he ran off to make business.

I had such mixed feelings standing in that line. I was caught between a feeling of yearning, a certain homesickness that sometimes catches me at the oddest moments, and a heavy feeling of dread. What if they didn't agree to let us out again? It wasn't really possible, but what if it happened? What if this was the last time I'd see the Iraqi border? What if we were no longer allowed to enter Iraq for some reason? What if we were never allowed to leave?

We spent the four hours standing, crouching, sitting and leaning in the line. The sun beat down on everyone equally- Sunnis, Shia and Kurds alike. E. tried to convince the aunt to faint so it would speed the process up for the family, but she just gave us a withering look and stood straighter. People just stood there, chatting, cursing or silent. It was yet another gathering of Iraqis – the perfect opportunity to swap sad stories and ask about distant relations or acquaintances.

We met two families we knew while waiting for our turn. We greeted each other like long lost friends and exchanged phone numbers and addresses in Damascus, promising to visit. I noticed the 23-year-old son, K., from one of the families was missing. I beat down my curiosity and refused to ask where he was. The mother was looking older than I remembered and the father looked constantly lost in thought, or maybe it was grief. I didn't want to know if K. was dead or alive. I'd just have to believe he was alive and thriving somewhere, not worrying about borders or visas. Ignorance really is bliss sometimes...

Back at the Syrian border, we waited in a large group, tired and hungry, having handed over our passports for a stamp. The Syrian immigration man sifting through dozens of passports called out names and looked at faces as he handed over the passports patiently, "Stand back please- stand back". There was a general cry towards the back of the crowded hall where we were standing as someone collapsed- as they lifted him I recognized an old man who was there with his family being chaperoned by his sons, leaning on a walking stick.

By the time we had reentered the Syrian border and were headed back to the cab ready to take us into Kameshli, I had resigned myself to the fact that we were refugees. I read about refugees on the Internet daily… in the newspapers… hear about them on TV. I hear about the estimated 1.5 million plus Iraqi refugees in Syria and shake my head, never really considering myself or my family as one of them. After all, refugees are people who sleep in tents and have no potable water or plumbing, right? Refugees carry their belongings in bags instead of suitcases and they don't have cell phones or Internet access, right? Grasping my passport in my hand like my life depended on it, with two extra months in Syria stamped inside, it hit me how wrong I was. We were all refugees. I was suddenly a number. No matter how wealthy or educated or comfortable, a refugee is a refugee. A refugee is someone who isn't really welcome in any country- including their own... especially their own.

We live in an apartment building where two other Iraqis are renting. The people in the floor above us are a Christian family from northern Iraq who got chased out of their village by Peshmerga and the family on our floor is a Kurdish family who lost their home in Baghdad to militias and were waiting for immigration to Sweden or Switzerland or some such European refugee haven.

The first evening we arrived, exhausted, dragging suitcases behind us, morale a little bit bruised, the Kurdish family sent over their representative – a 9 year old boy missing two front teeth, holding a lopsided cake, "We're Abu Mohammed's house- across from you- mama says if you need anything, just ask- this is our number. Abu Dalia's family live upstairs, this is their number. We're all Iraqi too... Welcome to the building."

I cried that night because for the first time in a long time, so far away from home, I felt the unity that had been stolen from us in 2003.

I wish you could publish this. I want everyone to know.”

Lubna, a young woman from Baghdad, mother of four, stranded in Cairo, narrates her ordeals to Nida Mariam

She left al Doura, south Baghdad, in the darkness before dawn.
At five a.m. one morning, in mid-2006, 40 days after her father had been murdered by militiamen in front of her mother's eyes, Lubna Hamed Rasheed, 35 years old at the time, bundled up her belongings, collected her courage, and told her toddler, "As soon as we cross the Iraqi border, we will be out of danger."

There was a stream of cars moving together from her street. And when she, her children, and her neighbours got into the bus station, to take the land route to Syria, it felt as if all of Iraq was waiting to flee.

***
In the moments before Lubna was to arrive for our appointment, I quickly scanned my email to find the record I had been sent of her. No testimony about her experience in Iraq showed up. Five short depressing sentences describing her situation since she had come to Egypt—that was all I had.

The doorbell rang. Dressed in a black abaya, clutching her phone and a loosely wrapped headscarf casually under her chin, she walked in. She had something of a spark in her smile. She greeted us with warmth.

Few minutes later, seated side by side on the comfort of a couch, I suggested something through Omaima, our translator, who sat in front of us, "We can keep your name and other details anonymous, if you'd like." Lubna stirred some sugar into her tea, set the spoon down on the metal tray, and shook her head resolutely, "No, I wish you could publish this. I want everyone to know."

***
They shot her father in the leg when he tried to escape. They shot him eight times in all.. But the hospital report said it would have made no difference had they not shot, at all. By the time they took out their guns and fired, his spleen was already bleeding. They had beaten him up badly enough.

That morning, Lubna's mother ran out of her home in al Khadra, west Baghdad, to save her husband from the militiamen. Again and again, she kissed their feet, begging them to stop, begging them for mercy, begging them to leave.

***
I requested Lubna to tell us about her life in Egypt.

Lubna left Baghdad in the darkness before dawn in mid-2006. She bundled up her belongings, collected her courage, and told her toddler: "As soon as we cross the Iraqi border, we will be out of danger"

"I will speak in an Iraqi accent," she stated, checking with Omaima that her speech was comprehensible, before offering us the first-round, watered-down version, of the trial that was her life.

"I have four children—three daughters and a son. In Iraq I was married to this Egyptian man, when I came here with my children, he divorced me."

Trite and tragic, that's how she began.

"We didn't find any housing. I didn't know what to do. For six months we were homeless. We slept in the street."

That the divorce was ugly and unfair and unresolved was sad, not surprising. But the legal particularities of her marriage to that man unravelled a little later.

Her four children, though born in Iraq, were by virtue of their father, registered as Egyptian citizens at birth. Now that he had abandoned her, she had no one else to turn to in Egypt. "And we can't go back to Iraq because my children are Egyptian and I don't have anyone in Iraq. I don't have a house in Iraq. I have nothing there," she explains. But even if Lubna were to decide to go back to the dangers of Baghdad, she could not take her children with her. They would be denied entry. These were the citizenship laws of the Arab world. Despite their mother's nationality, as children of an Egyptian immigrant, they had no current legal status in Iraq.

She lay down her cup of tea and reiterated for a second time that afternoon, "My children are not in school. I am very upset because my eldest daughter is 14 years old and cannot read and write." She explained that her daughters had been out of the classroom for three years now.

But why, if they were Egyptian nationals, were her children not able to enrol in public school?

When Lubna finally found a place to live in October 6 City just months ago, she had approached the local school authorities, "But they wanted the children's documents from their schools in Iraq, and I couldn't do that. I couldn't bring them. My father was killed in the war. My brothers are in detention. I don't have anyone to run for this and bring the papers." For all she knows the teachers at that school are dead; and from what she remembers the US Armed

Forces occupy the building now.

And then there was the issue of rent. For five days the landlord had been knocking on the door, demanding the payment, threatening to throw her out again. The last time he had come she had pretended as if she was not home. She could not bear the thought of being back with her children on the street. 
Was there anywhere that she had tried to go for assistance?

When Lubna went to the Cairo offices of the United Nations High Commissioner for Refugees (UNHCR), she was turned away at the gate. The security guards informed her that, despite her Iraqi nationality, she was not eligible for refugee status. "Because my children are Egyptian, we can stay here, so they don't consider me a refugee." Omaima, who works extensively with all refugees and helps them with their applications to UNHCR, explained that though Lubna was, in a sense, a refugee, she had a better legal standing than other Iraqis in Cairo, who are granted recognition as asylum seekers primarily in order to be issued residency permits. These other Iraqis do not have the right to employment. As a mother of Egyptian nationals, Lubna has the right to live and work in Egypt.

Lubna's life has been triumph more than tragedy. For one, despite the legalities surrounding the fact that her nationality is different than her children, she managed, against the odds, to bring them with her to Egypt 

Lubna tried to work as a housemaid, but had a lot of problems because of that. She can't leave her children out of her sight, often afraid to even take them outside. She thinks someone might kidnap them. She gets frightened every time the doorbell rings; she thinks someone has come to attack even though she knows 'these things' don't happen in Egypt. "I have something like a phobia", she reveals, "Maybe from Iraq, because our life was just in horror. I was seeing people being killed and being raped and being abducted and everything."

Her mind switched tracks for a brief moment. "Will you publish this story?" she asked in anticipation. "Maybe someone will have a good heart to help me," when the idea of what we had just begun started to sink in.

***

Lubna decided to leave al Doura because of "those men who cover their faces and only show their eyes". She doesn't know who they are. Sectarian tensions erupted in this part-Shia, part-Sunni neighbourhood where people once inter-married. These men had gone in and mutilated her neighbour's son. These men started breaking in, looting houses, murdering people, and raping girls. There were blackouts, randomly. She no longer felt safe for her daughters and stopped sending them to school.

She used to make a good living off the lorry that was in her name. She didn't ever have to work as such, as the lorry driver would transport cement and other building material from construction companies to markets around Baghdad. Then the men stole her lorry, and she lost everything.

The war did not leave anything behind.

II

The second time I met Lubna I drove out to her place in October 6 City, with my friend, Mai, who was kind enough to come and play translator. The weather was gorgeous and Lubna came out, her younger daughter and youngest son trailing behind, to the main street to meet us. Once again, her headscarf draped loosely around her head, she held her phone in her hand. And as before, there was warmth.

As we sauntered back to her block, and up her building stairs, I prepared myself for what I knew from the email would be in her apartment. Nothing. "Lives in a bare flat with not a single piece of furniture; needs clothing—has only one blanket for all five of them to sleep under," part of it had read.

As we entered, Lubna's two elder daughters emerged from the bedroom and gathered around us with shy smiles. The younger two children went out to the small balcony to play. We sat down on mats on the floor in the living room, and I gleaned from her manner a newfound sense of belonging, "We didn't have a place before, but now this is considered our place," she said. The worst had come to pass, and she was picking up the pieces and beginning to provide for her children a notion of normality that she knew she must maintain.

"You know what you're like when you don't sleep for a day?" Lubna directed the question toward me, to get me to fathom what it had been like when she was homeless on the streets. "I would take the children to many places, from morning to night, we would want to sleep but couldn't. We were very tired."

Poignant and pointed, she continued, "We'd stay around Saeeda Zainab, or outside the Iraqi embassy. Sometimes, if I had money enough from people at the masjid, we'd go to Mansoora, other times we'd go to Alexandria, and stay at the homes of other Iraqis. For example, in Syria, I met this Iraqi woman, so I went to spend the night with her. In Alexandria, I knew some Iraqi people so I went to spend the night with them. Sometimes I'd stay at some person's place, sometime in the street, sometime in another person's. I would just go because I needed to sleep."

But it wasn't as easy as that; there were issues of personal pride and cultural etiquette involved, "As soon as I started to feel that they were not very welcoming anymore, I would leave. I would take my children and walk in the streets again." I hadn't noticed, but Haneen, her eldest daughter had gone into the kitchen. She came out carrying a tin tray with three small glasses of tea. She set it down between us and rejoined our circle of conversation.

***

Months after Lubna's husband had divorced her, her husband's uncle's wife called and asked to take her eldest daughter, Haneen, to their family home in upper Egypt for a wedding. Lubna went to the police station and signed papers to ensure that she was the sole legal guardian of her four children. She then made her husband's uncle's wife put her palm on the Koran and swear that she would return her daughter to her. Then she let Haneen go.

When her husband's uncle's wife returned to Cairo after the wedding she told Lubna that Haneen had decided to stay on with her father.

In upper Egypt, Lubna's mother-in-law told Haneen that Lubna was dead. She then put Haneen to work in the field and to milk the cows in the shed, which Haneen did not want to do.

One day Haneen managed to call Lubna. She was crying. Her grandmother, Lubna's mother-in-law, was planning to sell Haneen's hand in marriage to a much older man for a sum of 9000 LE.

From then on, with the help of a sympathetic aunt, Haneen would call Lubna crying almost every week. Lubna used all the tactics she had. And even threatened to fax President Mubarak and inform the police until she had her daughter back. It took eight months before Lubna had Haneen back in her custody.

***

Lubna's life has been triumph more than tragedy. For one, despite the legalities surrounding the fact that her nationality is different than her children, she managed, against the odds, to bring them with her to Egypt.

When coming to Egypt via Syria, the fact that she was Iraqi and her children Egyptian caused her much trouble. She explained, "I had my passport, I could easily get into Syria with no visa, because I am Iraqi. But as Egyptians, my children should have a visa, even simply to pass through." Furthermore, as they were minors they were all registered on her husband's passport, and he had already left. With no Egyptian embassy operating in Iraq at the time, Lubna had to issue them some strange one-way transit document that nobody had seemed to recognise and sign a paper promising to leave Syria for Egypt in two weeks time. But the authorities wouldn't let her in easily, the bus driver begged the police on her behalf. Lubna faced much harassment from then. Then they let her through into Syria but refused to let her take the road to Jordan. They insisted she take a flight. And then there was a ray of luck, "The Egyptian ambassador sympathised with me, when he saw me crying at the Egyptian embassy. He called me in, asked them to bring me food, and he took the children and got their photos taken for the travel document, even though it was after hours, and at 2 pm the embassy closed its doors. But he sympathised with me when he saw the little one crying. He was a young man, and had very good, kind manners." She considers him the one who saved her life, kept her family intact. By then, however, Lubna was already out of money, so she sold her cell phone, borrowed money from some generous refugees and bought five plane tickets to Cairo. She arrived in Cairo with not a guinea in hand.

Lubna's present legal predicament is her own nationality. Her passport has expired. "I wanted to renew my passport and when I went to the Iraqi embassy they ask me where my mehram is! I went three times to Iraqi embassy in Mohandiseen last month." Lubna is 37 years old she and is still considered a minor and requires an immediate male relative in order to renew her citizenship documents. The male relative has to be Iraqi so even her husband coming, were he to oblige her, would not do. Lubna has no other relatives in Egypt. With her father dead, and her brothers traumatised, she has no one to help her from Iraq.

"How can I bring those here?

Everyone has their own problems and we are all scattered around the globe, I cannot reach any of them. How can I bring you someone if I don't have anyone?" she asks rhetorically. As for protection for her children, "They said, 'we are not responsible for them, they are Egyptian, '" explaining how she is falling through the crack. Lubna's situation presents the precariousness of a woman's legal status in the current socio-political milieu of the Middle East.

Despite her divorce and everything else, Lubna has kept her children together, and when I asked if they have any physical or psychological problems because of everything they've been through, she praises God, "Besides Mohammed's cough, the kids are fine, mashallah." The toll has perhaps all been borne by her, "I have a problem. I get nauseous quite often. When I put cold water I feel better, and it affects this area," physically indicating a searing pain around the crown of her head. "The pain stays," she says, "And sometimes I feel faint."

***

Before the fall of Baghdad, Lubna says she would never bother to have breakfast at her home in al Doura: "I would take a cab, and go to my mother's in al Khadra to have breakfast there every morning. Every morning, I would go to have breakfast with her. We would have thick cream and hot bread."

"We were something beautiful back then."

That is:

> before her father was killed;

> before her mother withdrew from social life;

> before her brothers were tortured;

> before her family was scattered—her sisters seeking asylum in Syria, her brothers getting detained in Buka prison and Abu Ghraib;

> before her brother-in-law was caught in a landmine;

> before her cousin was cut up;

> before another was blown up;

> before yet another went to the market and never returned;

> before all of that,

> before the fall of Baghdad, while still sitting around and chatting in the garden over breakfast, they were something beautiful.

Financial Hurricane Batters World Capitalism: System Failure And The Need for Revolution

The most serious financial crisis since the Great Depression shows no sign of letting up. The financial edifice of U.S. imperialism is in danger of crumbling. The U.S. ruling class is confronting what Federal Reserve chairman Ben Bernanke describes as a crisis of "historic proportions"—and is hurriedly cobbling together desperate measures to prevent wholesale collapse. Three of the largest independent investment banks on Wall Street have ceased to exist since April. The government had to assume a major stake in the American International Group (AIG), the world's largest insurer, to prevent it from collapsing. Now the U.S. Treasury is considering taking ownership positions in major U.S. banks.

This crisis is amplifying internationally. Western Europe is facing large bank failures and governments are engineering their own bailouts. The Russian stock market has intermittently suspended operations. Financial markets in Asia have nose-dived. Mexico's economy is wobbling, as its exports shrink.

Two things stand out about this crisis. First, there is the ferocity of its global shocks and the speed with which it has spread. Second, unlike the debt and financial crises of the last 30 years, which were largely centered in the Third World, this crisis initially exploded in the U.S., the world's leading capitalist economy, and is focused in the financial centers of world capitalism.

U.S.-led finance, which plays a dominant and shaping role in the global capitalist order, has taken a huge body blow. This will have enormous repercussions, not just for the stability of the world capitalist system but for power shifts and rivalries within it.

Many progressive commentators have put the blame for this crisis on fraud and greed, or on lax regulation. All of which are certainly in play. But these explanations do not get to the essence of what is happening, to the cause of the problem. This crisis is the outcome of the fundamental workings of the capitalist system.

The analysis that follows is framed by these core points:

There is an essential relationship between the vast enlargement of the financial sector in the U.S., and the general phenomenon of financialization, and the deepening globalization of capitalist production of the last 15 years. And central to this dynamic has been the relationship between U.S. imperialism and China.

Through the course of this growth and expansion, severe imbalances have built up between the financial system—and its expectation of future profits—and the accumulation of capital, that is, the structures and actual production and reinvestment of profit based on the exploitation of wage-labor.

A "dirty little secret" of this crisis is the enormous weight of militarization of the U.S. economy.

This crisis is a concentrated expression of the anarchy of capitalist production—the fact that production is not carried out according to any conscious, rational plan at the society-wide level, much less at the international level.

Background to Crisis

In the early 2000s, in the aftermath of the collapse of high-tech stocks, the U.S. Federal Reserve Bank sought to stimulate lending and growth. It lowered interest rates and pumped funds into the banking system. Banks had access to cheap and plentiful credit. And through deceit and aggressive marketing, they pushed mortgages on people. The Federal Reserve continued to inject low-cost funds into the banking system—helping to prop up loans and to fuel a long-term speculative housing bubble.

Banks sold these mortgages to investment banks. The investment banks in turn bundled these loans together with other loans, created complex financial products, and sold them to large investors—in the U.S. and in other parts of the world, especially Western Europe. These mortgage-backed securities, as they are called, circulated in financial markets and became the basis for other loans. The ultimate collateral for this chain of borrowing and lending was the original mortgage loans. So when housing prices fell, and as growing numbers of mortgage holders found themselves unable to pay back housing loans, much of this original collateral became nearly worthless.

This whole process is an obscene example of how under this capitalist system something as basic as human shelter becomes a financial instrument and object of speculation. This has led to a situation today where 1 in 6 U.S. homeowners owe more on a mortgage than their home is worth; where 1 in every 65 households in California is in some phase of foreclosure; and where a disproportionate number of Black and Latino families who have been victimized by predatory lending have experienced incredible losses of what little wealth they had.1

AIG had made enormous profits internationally by selling insurance to investors who held many of these mortgage-backed securities. These investors would be repaid by AIG, in the event that the loans that were bundled into these financial packages they had purchased were defaulted on—could not be paid back. But by mid-September, AIG could neither cover massive loan damage nor borrow sufficient funds on the financial markets to keep itself afloat. AIG was so interconnected with other major financial players that if the company went under, it would likely have taken others down.

In the face of mounting financial crisis, the imperialist state intervened. It acted as the representative of capital and as the guardian of the interests of capital. The U.S. ruling class was faced with a two-fold danger: mounting losses and bankruptcies in the financial sector; and the choking up of lending channels, which could send the economy into a rapid downward spiral.

The government basically took over AIG. And on September 19, the Treasury Secretary Henry Paulson announced a $700 billion bailout. The essence of the rescue package was that the government would buy the troubled mortgage-backed securities sloshing about in the financial system and through this get lending going again. But the announced bailout did not unblock credit markets or calm stock markets. Nor has it restored international confidence in the U.S. economy.

Taking a Step Back

This crisis broke out in the banking system. Its more immediate trigger was the popping of a speculative real estate bubble, cascading losses in the financial sector, and the inability of stricken financial institutions to raise capital and the unwillingness of others to lend capital.

At a deeper level, this crisis is the outcome of a particular trajectory of world capitalist growth.

There has been a massive new wave of globalization. One of the most significant features of world growth and expansion of the last 15 years has been the deepening integration of the world capitalist economy. This is happening both on the level of production and trade—like the parts that go into a computer being manufactured in different parts of the world; and in the case of an iPod being totally manufactured in China. And it is happening on the level of finance—where banks operate globally and are more tightly interlinked with one another through chains of borrowing and lending and even, as in the case of AIG, insuring risks of lending.

This new wave of globalization has involved direct productive and financial investments abroad. It has involved the expansion of outsourcing and subcontracting. And central to all of this has been the fuller integration of export producing countries of the Third World into the world capitalist market—and the forging of a globally-integrated, cheap-labor manufacturing economy.2

40 percent of the imports coming into the U.S. are accounted for by U.S. transnational corporations—and this does not even include the subcontracting done by companies like Walmart. 30 percent of U.S. corporate profits are generated overseas. China, which has evolved into the high-profit workshop/sweatshop for international capitalism, has been at the epicenter of this recent surge of globalization.3

From the standpoint of the needs of profitable globalization, various elements of deregulation—for instance, the lifting of barriers to rapid shifts and transfers of capital—were functional. This is why both Republicans and Democrats have promoted deregulation. Indeed, the Clinton administration in the 1990s played a decisive deregulating role. It negotiated so-called free-trade agreements with Third World countries and helped to loosen strictures on U.S. banking and telecommunications.

The trajectory of capitalist growth of the last 15 years has also involved heightened financialization. On this platform of more globalized production and exploitation, the financial services sector in the advanced capitalist countries mushroomed.

On a turbo-charged global playing field of ever-more mobile and massive flows of investment capital—where the stakes of winning and losing are enormous—capital requires all kinds of risk management. Investment banks and other financial institutions provide such financial services to "hedge" against interest rate variations, currency fluctuations, and other sources of volatility and loss. At the same time, financial activities became a greater source of short-term and speculative profits. In an intensely competitive atmosphere for financial market share, investment banks were creating ever-more complex and exotic financial products. Global financial assets increased from $12 trillion in 1980 to nearly $200 trillion in 2007, far outstripping the growth of world output or the expansion of trade.4

Growth in the advanced capitalist countries over the last 15 years became increasingly finance-led and credit-driven. The U.S. has been at the epicenter of this process of heightened financialization. By 2005, the manufacturing sector of the U.S. economy had fallen to 12 percent of the U.S. gross domestic product (the production of goods and services), while the financial services sector made up of finance, insurance, and real estate had grown to 20 percent. In 1982, the financial sector's share of total corporate profits was just over 5 percent; in 2007, the financial share of corporate profits had skyrocketed to 40 percent!5

Contradictions of Development

These interrelated processes of globalization and financialization ultimately led to unsustainable imbalances and instabilities. The dynamics that fueled growth have generated new barriers to profitable accumulation of capital. Strengths have turned into vulnerabilities.

These include:

Bloating of the financial sector relative to the productive base. 
Huge run-up of debt and U.S. trade and government deficits in the U.S. necessitating massive and uninterrupted inflows of capital from around the world, with the central banks of Japan and increasingly China holding huge amounts of U.S. Treasury debt.

Billions upon billions of dollars of paper assets that cannot be transformed into real, productive and material, assets.

U.S. consumption and borrowing stimulating China's growth but China's breakneck manufacturing growth further fueling U.S. trade deficits and intensifying competitive pressures throughout the world economy.

The expansion of credit spurring growth but heightening global financial fragility.

We are seeing things turn into their opposites. Financial institutions attempted to reduce risk and to profit from risk by dispersing more varied financial instruments over a wider field of investors internationally. But this process has drawn investors, these very institutions, and now governments into a vortex of vulnerability and crisis. The heightened globalization of production and markets, the closer intertwining of economies, has created conditions for faster and even more extensive ripple effects of crisis throughout the world.

A Knot of Contradictions

A strategic concern of the U.S. ruling class is the international strength of the dollar. The dollar is the world's leading currency for settling transactions, clearing debts, and holding foreign exchange reserves (trade and investment earnings that become part of the reserves of foreign central banks). The dollar has been a linchpin of U.S. global supremacy and of the whole current global economic order.

The dollar is also an investible commodity—major currencies are bought and sold and traded on international currency markets. The value of the dollar rises and falls in relation to other currencies, and in response to international political and economic trends and developments. If foreign central banks and investors were to significantly shift away from dollar holdings, this could set off a global monetary crisis and/or strengthen the position of rival currencies (like the euro) and rival powers.

These are uncharted waters for U.S. policymakers: in the scale and complexity of the crisis…in the magnitude of the rescue operations required to prevent financial breakdown…and in the rapidity with which this crisis is unfolding. A Harvard research economist put it this way: "like the sorcerer's apprentice, we have created things we do not understand and cannot easily control."6

U.S. imperialism has limited maneuvering room. The U.S. is already the largest debtor country in the world. It is waging costly wars for greater empire in Iraq and Afghanistan. And both John McCain and Barack Obama are committed to America's global "war on terror"—the umbrella under which the U.S. is waging these wars for empire.

U.S. imperialism has attempted to parlay its superior military strength into a new world order and to lock in its global supremacy for decades to come. Defense and defense-related spending totaled more than $1 trillion in fiscal 2008.7 And military-related production and research have long been deeply embedded in the U.S. economy. The whole imperialist system rests on the domination of vast swaths of the globe through savage force, with the U.S. military colossus playing a special role. The costs of forcibly preserving and extending the U.S. empire is one of the dirty little secrets of the dynamics of this crisis that scarcely gets talked about.

Here an important dialectic comes into play. "U.S. military dominance," writes Kenneth Rogoff, former chief economist for the International Monetary Fund, "has been one of the linchpins of the dollar."8 But this military dominance and the wars the U.S. is waging have increasingly come to depend on the steady inflow of foreign capital into the U.S. (to the tune of $3 billion a day). For this to continue requires that the U.S. economy and dollar remain stable. This is a major contradiction for U.S. imperialism.

U.S. imperialism is facing new competitive challenges and the emergence of potential rival constellations of imperial and big powers—vying for market shares, control over energy resources, and geopolitical position.

Emergency Capitalism

People are losing their homes. Retirement savings plans since the middle of 2007 have lost 20 percent of their value with the stock market sinking. Funding for vitally needed social programs and services at state and local levels is being pinched by the financial crisis and economic slowdown. In much of the Third World, food prices soared over the last year, this is partly related to financial speculation, and hunger has spread.9

While the futures of millions are in jeopardy, what is the paramount concern of those at the top of the pyramid of economic and political power? It is the protection of a financial system that sits atop a global system of exploitation; it is the rescue of the owners and investor beneficiaries of that system.

This is not "socialism for the rich" or a bailout for the people. It's emergency capitalism for the capitalist class: injections of funds and guarantees, government takeovers, cost-cutting, selective liquidations, restructuring of regulations; and it's more brutal capitalism for everyone else: austerity, more intense international exploitation, and more misery for people throughout the world.

The official story line is that this crisis issues from particular flaws and malpractices that can be corrected: "excessive greed," "Wall Street irresponsibility," "outdated" or " unenforced regulations."

The truth is that this crisis has deep structural causes in the very nature of the system—in the quest for profit, not the satisfaction of human need, and in the anarchic workings of world capitalism.

We are seeing how the means through which capitalism expands and "innovates" have led to new barriers and to gales of "creative destruction"—with trillions of dollars of asset values destroyed in the market turmoil. Through these convulsions, the imperialists seek to wrench new freedom, promoting further consolidation and monopolization. Bank of America absorbs the giant investment bank Merrill Lynch. Lehman Brothers is forced into liquidation.

Whoever wins the presidential election will be inheriting a battered financial system and huge government deficits. This will not be an era of expanded social spending, but one of more direct government intervention in financial markets and cutbacks in social spending.

A Status Report

This rolling and intensifying financial crisis serves as a profile and status report on capitalism in the 21st century:

A once-thriving subprime mortgage market…had been linked to the ability of U.S. financial institutions to market securities to European banks and of the U.S. Treasury to draw in export earnings from China…earnings generated in sweatshops…tied into subcontracting networks of Western corporations….

Real estate markets tank…. The "smart money" looks for "safe places" to shift its capital…. Some of it heads for commodity futures like rice…. So food prices spiral upward in response to the investment stratagems of people who know and care nothing about food needs and food production…. In countries like Haiti, women who can no longer afford basic staples are feeding their children mud-cakes….

A French bank, with its assets plunging in value, and the chain of global capitalist finance snapping all over, now finds itself with "non-performing loans"…. It must "improve its balance sheet" and faces pressures to reduce or eliminate trade credits to a country in Africa that depends on imports for food, and where people already spend 50 percent of their incomes for food.

Despite staggering advances in technology and human knowledge, despite the fact that the development of human society has brought humanity to a historic threshold where it is now possible not only to overcome scarcity and exploitation but also to forge social arrangements where human beings can truly flourish—despite all of this potential, social and economic life are under painful duress and the ecosystems of the planet gravely threatened. It is not for lack of resources or knowledge.

All of what has been described in this article is the result of the relations and domination of capital, the result of the workings of a system driven by vicious competition and the blind accumulation of profit based on exploitation—and backed by massive military force.

In the heartland of capitalism, there is financial meltdown. In the Third World, millions are already suffering the ravages of a global food crisis. This system is a horror and a failure. Is it necessary for humanity to live this way?

The October 10 edition of The Washington Post carried an article with the title and question "The End to American Capitalism?" In forums and in the media, leading bourgeois policymakers and analysts have discussed whether this crisis, careening beyond control and threatening greater economic calamity, suggests that there is something fundamentally amiss about capitalism. And the emphatic answer given is the same: "the system may not be working optimally, but there is no alternative, only gradations and variations of capitalism."

But there is another way. It is possible to take hold of the productive resources of society and to develop and deploy them in a rational, planned, and society-wide way to meet human need and to safeguard the planet. It is possible to establish a radically different kind of state power and to create a society and institutions that unleash people's creativity and that promote initiative and diversity in an atmosphere that brings out human community.

The question of socialism, of communism, of revolution could not be more relevant…and more urgent.

To be clear, revolution is not a catchword for lots of new things or lots of change. Revolution has very specific meaning: the people getting rid of the system; depriving the old ruling class of their political-economic-military power; and creating a new power with new aims and objectives and the means to enforce those aims and objectives.

As serious as this crisis is, with all the havoc it is wreaking, the system will not automatically collapse of its own weight and disorder. Absent revolution, capitalism will put itself back together—in its own image and at unimaginable social cost.

And for all the agony that crisis inflicts, this will not automatically and spontaneously translate into progressive, radical, and revolutionary sentiment and consciousness. Other forces are in the field doing ideological and political work: reactionary populists like Lou Dobbs ("blame the foreigners and illegal immigrants") and Sarah Palin whipping up a social base for religio-fascism. The Obama candidacy is channeling disenchantment and the thirst for change right back into the political system's suffocating embrace ("change we can believe in" is nothing other than change acceptable to the powers that be).

This is a highly fraught situation. Things can change very quickly. The system is revealing much about its basic nature. Bigger jolts may come and outrage may suddenly grow and give rise to resistance from all kinds of quarters. We have to grasp the potential of the situation. We have to be out there bringing forward understanding and bringing forward a vision of a liberatory world. We have to rise to new political and ideological challenges in the belly of the beast.

ENDNOTES

1. Data from James R. Hagerty and Ruth Simon, "Housing Pain Gauge: Nearly 1 in 6 Owners 'Under Water,'" Wall Street Journal, October 8, 2008; RealtyTrac, "Foreclosure Activity Up 14 Percent in Second Quarter," Realtytrac.com, July 25, 2008. A study published earlier this year estimates the total loss of wealth suffered by Black, Latino, and other minority households on account of bank subprime-lending of the last eight years to be the greatest loss of wealth for people of color in modern U.S. history (United for a Fair Economy,Foreclosed: State of the Dream 2008).

2. Among informative studies of the origins and development of a globally integrated cheap labor manufacturing economy, see Michel Chossudovsky, The Globalization of Poverty and the New World Order (Quebec: Center for Research on Globalization, 2003); and on globalized manufacturing in relation to financialization, see William Millberg, "Shifting Sources and Uses of Profits: Sustaining US Financialization with Global Value Chains," Economy and Society, Vol. 37, No. 3 (August 2008), pp. 420-451.

3. Data from Milberg, "Shifting Value Chains…"

4. Jeffrey Garten, "We Need a New Global Monetary Authority,"Financial Times, September 25, 2008. On financialization as a means also to contain financial disorder and to impose profit maximizing discipline on capital, see Christopher Rude, "The Role of Financial Discipline in Imperial Strategy," in Leo Panitch and Colin Leys, eds., Socialist Register 2005: The Empire Reloaded, London: Merlin Press, 2004.

5. Kevin Phillips, Bad Money (New York: Viking, 2008), p. 5; Robert Wade, "The First-World Debt Crisis of 2007-2010 in Global Perspective," Challenge: The Magazine of Economic Affairs, July-August 2008, p. 33.

6. David Dapice, "Bad Spell on Wall Street,"Policyinnovations.org, January 24, 2008.

7. Leaving out the wars in Iraq and Afghanistan, defense spending has doubled since the mid-1990s. See Chalmers Johnson, "Why the US has really gone broke,"mondediplo.com (English edition), February 5, 2008.

8. Kenneth Rogoff, "America Will Need a $1,000bn Bail-Out,"Financial Times, September 17, 2008.

9. On the global food crisis, see "The Global Food Crisis and the Ravenous System of Capitalism," Revolution #128, May 1, 2008. 

By Raymond Lotta

(countercurrents)

To a Malabar girl

By Charles Baudelaire 

Your feet are as slender as hands, your hips, to me, 
wide enough for the sweetest white girl’s envy: 
to the wise artist your body is sweet and dear, 
and your great velvet eyes black without peer. 
In the hot blue lands where God gave you your nature 
your task is to light a pipe for your master, 
to fill up the vessels with cool fragrance 
and chase the mosquitoes away when they dance, 
and when dawn sings in the plane-trees, afar, 
fetch bananas and pineapples from the bazaar. 


All day your bare feet go where they wish 
as you hum old lost melodies under your breath, 
and when evening’s red cloak descends overhead 
you lie down sweetly on a straw bed, 
where humming birds fill your floating dreams, 
as graceful and flowery as you it seems. 



Happy child, why do you long to see France 
our suffering, and over-crowded land, 
and trusting your life to the sailors, your friends, 
say a fond goodbye to your dear tamarinds? 
Scantily dressed, in muslins, frail, 
shivering under the snow and hail, 
how you’d pine for your leisure, sweet and free, 
body pinned in a corset’s brutality, 
if you’d to glean supper amongst our vile harms, 
selling the scent of exotic charms, 
sad pensive eyes searching our fog-bound sleaze, 
for the lost ghosts of your coconut-trees! 

- (The remnant of Baudelaire's half born voyage to Malabar)

Does The Bailout Pass The Smell Test?

The explanation that has been given for the financial crisis does not match up with the solution that has been devised. Moreover, the windows into the crisis offered by the authorities are opaque rather than transparent.

The only clarity we have is that the crisis is resulting in financial concentration and that the bailout constitutes a massive raid by financial crooks on both taxpayers and central bank reserves in the US and Europe.

The public monies that are being directed to private financial institutions are huge. According to news reports, Germany is devoting $540 billion to shoring up German banks, England is devoting $73 billion, and France has pledged over $400 billion. The US now has four separate bailouts underway, $800 billion for banks, $200 billion for Fannie Mae and Freddie Mac, $85 billion for the insurer AIG, and $25 billion for the US auto industry. These figures add to more than $2.1 trillion.

Some of these public monies are for purchasing troubled paper assets. Others are to be directly injected into the banks as public supplied capital for private financial institutions, an ironic outcome for the free market ideology that resulted in the deregulation of the US financial system. According to news reports, in England the entire $73 billion is being poured into banks as publicly supplied new capital. In Germany $135 billion is for recapitalizing troubled banks. In the US Treasury Secretary Paulson is talking about using bailout money to purchase non-voting bank shares.

How is it possible that a financial crisis of such magnitude hit with such suddenness and urgency, catching finance ministries and central banks unaware?

If the problem is what the public has been told, namely that defaulting subprime mortgages are reducing the income flows through to the holders of the mortgage-backed securities, why isn't the bailout money being used to refinance the defaulting mortgages and to pay off the foreclosed mortgages?

That would restore the value of the mortgage-backed securities, and it would not be necessary to pour huge amounts of taxpayers' money into recapitalizing banks and purchasing their bad assets.

There is not an unmanageable number of defaulting mortgages. According to the US Treasury estimate, 90-93% of the mortgages are good. How does a 7% or 10% default rate on US mortgages translate into a systemic worldwide financial crisis?

The popping of the US real estate bubble could not produce worldwide systemic financial crisis without the mark-to-market rule, short-sellers, and a great deal of hype and orchestration. Why did Secretary Paulson let Lehman Bros. fail when every other firm is bailed out? Did Lehman's failure, by unwinding its own large portfolio, push hedge funds and banks into panic selloffs that spread the crisis at home and abroad?

The US Congress held no hearings on the crisis and consulted no independent experts. Congress responded dumbly to the financial crisis, just as it did following 9/11 when the Bush regime handed it the PATRIOT Act and the Afghan invasion. To secure Congress' acquiescence to the Paulson bailout, the Bush regime used threats of meltdown and martial law to panic Congress into turning over vast amounts of money for which accountability is lacking. The hype behind the Paulson bailout is the financial version of the mushroom cloud evocation used by the Bush regime to panic Congress into accepting the US invasion of Iraq. Is yet another hidden agenda at work?

It is unclear how the bailout will play out. The monies for the US bailout will have to be borrowed abroad or printed. If foreign central banks need their dollar reserves in order to bail out their own banks that are polluted with toxic US financial instruments, the US Treasury might not have an easy time in the debt market. Moreover, the interest expense on an additional borrowed $700 billion will raise the US current account deficit and burden US taxpayers with higher interest payments. If the money has to be printed, inflation and dollar devaluation will depress living standards for most Americans.

If the US economy sinks deeper into recession, lost jobs and rising interest rates on troubled mortgages will result in more defaults and foreclosures, thus further impairing mortgage-backed securities and requiring Congress to put more burdens on hard-pressed US taxpayers in behalf of the banks.

The authorities have blamed subprime mortgages for the crisis. Why then does their solution fail to address the problem of the mortgages? Instead, the solution directs public money into an increasingly concentrated private financial sector, the management of which is not only vastly overpaid, but also has escaped accountability for the financial chicanery that, allegedly, threatens systemic financial meltdown unless bailed out by the taxpayers.

Perhaps my nose is too sensitive, but this bailout doesn't pass the smell test.

(Countercurrents.org)

Paul Craig Roberts was Assistant Secretary of the Treasury during President Reagan's first term. He was Associate Editor of the Wall Street Journal.

Dialogue: With Whom? Will The Real Leaders Please Stand Up?

The situation in India is poised over the brink: even as a section celebrates the "successful" signing of the N-deal, many others are exercised over the violence of the Sangh Parivar stormtroopers, spreading from Orissa to Karnataka, Kerala, MP, Jharkhand, and other states ruled by the Parivar or in coalition. Many people's groups and mass organizations including left-leaning, secular and human rights groups are organizing fasts, rallies, and protests against the assaults on fundamental freedoms in the country. Though belated, Christian groups, both lay and clergy-led are finally taking positions against the unprecedented violence against Christians in India, a departure from the usual silence or "turn the other cheek" response by Christian leadership. A third section among the Christians calls for a halt to all the protests by the Christians and for forgiveness to the perpetrators, as if protest means one is being unforgiving.

But there are two sections of Christian society who have been relatively silent in all this: one, members of the Christian community who are in political office and the actual victims of the violence. Of these, one person has been vocal – Dr. H T Sangliana, BJP MP the Bangalore North constituency, now suspended by the party, and one sympathises with his dilemmas. Known for his clean record and notable success during his distinguished tenure in the Indian Police Service, clearly he is out of his depth in the morass of Indian National Politics.

The second silent group is that of the victims of the violence, (barring the voice of the nun who was raped and around whom her community and church have rallied, and the priest who was also tortured). The Digals, Sunas, Bariks, Nayaks – men, women and children who are in hiding in the forests in Orissa – have not been asked what they are going through. And nobody wants to know. Has anyone asked the tribals and Dalits in the poorest districts of Orissa - itself one of the poorest states in India, a country again so low on the global Human Development Index why they saw the need to change their faith? Will anyone respect their reasons? Is anyone willing to have a dialogue with them?

The Central government sent five warnings to the State government but claims to still lack conclusive evidence to ban the Bajrang Dal for indulging in violence which has gone on for weeks. A section of those speaking and writing on the subject are engaged in trying to establish their "secular" credentials by proposing "dialogue" with the perpetrators of the violence. We all know the communist dictum that Power flows from the barrel of a gun. So now we are asked to engage in a "dialogue" with those who have the cynicism to talk of the Constitution in the same breath as the (non) issue of "forcible conversion" and who indulge in trishul dikshas. The whole world knows who is engaging in forcible conversion. In over three decades of the mis-named Orissa Freedom of Religion Bill's existence, there is not a single successful prosecution on the charge of Forcible conversion against Christians.

Sr. Nirmala went to meet Naveen Patnaik and ended up giving his government a certificate. The venerable archbishops of the Catholic Church have already had a "dialogue" with the leadership of the BJP and issued a joint statement that "all efforts should be made to restore peace and a sense of security with the cooperation of the governments concerned and the leadership of the Hindu and Christian communities. Justice must be done to the victims of violence expeditiously." But even as these statements are made, we see reports that violence in Kandhamal continue and has spread to other districts. So what is the value of the assurances given by the "Hindu" leaders to the Christians? Can we trust these "leaders" to deliver on their assurances?

By Cynthia Stephen
Countercurrents.org

No Bail Out For Wall Street Billionaires

Treasury Secretary Paulson and President Bush backed by the Democratic Congressional leadership have asked Congress for $700 billion dollars to bailout Wall Street financial institutions.
Over the past several years these banks reaped billions of dollars borrowing and speculating on mortgages, securities and other financial paper with virtually no capital covering their bets. With the fall in the housing market, Wall Street's financial debts skyrocketed, the value of their holdings evaporated and they are saddled with trillions of dollars of debt.

Paulson, Bush and the Congressional leadership want the US taxpayer to buy Wall Street's worthless private debts, saddling current and future generations of US taxpayers with worthless paper.

Paulson/Bush and the Congressional leaders falsely claim that failure to bailout the Wall Street swindlers will lead to the collapse of the financial system. In fact, almost 200 of our leading economists from the most prestigious universities reject Paulson's bailout. The truth of the matter is that withholding funds to Wall Street will lead to the collapse of the swindler-speculator-run financial system, which created the current economic debacle.

The Federal Government can and should use the hundreds of billions of public money to establish a national, publicly controlled banking and investment system subject to oversight by elected representatives. The collapse of the current bankrupt financial system is both a threat and an opportunity: The collapse of this corrupt system has led to the loss of jobs and frozen credit and lending; the establishment of a new publicly owned banking system offers an opportunity to finance the priorities of the vast majority of the American people: the re-industrialization of our economy, a universal national health program, securing and extending social security into the next century, rebuilding our decaying infrastructure and many other programs essential to the American way of life.

The problem is not the false alternative of bailing out Wall Street or financial chaos and collapse: The real choice is between subsidizing swindlers or establishing a responsible, responsive and equitable publicly run financial system.

Ten Reasons to Oppose the Wall Street Bailout
1. In a market economy capitalists justify their profits by the risk of losses that they take. Gamblers cannot keep their profits and pass their losses to the taxpayers. They have to take responsibility for their bad decisions.

2. Much of the toxic (garbage) debts were based on fraudulent practices – opaque financial instruments unrelated to real assets (but which generated huge commissions). Bailing out swindlers only encourages more swindling.

3. The US Treasury will purchase worthless paper, the private banks will retain any assets of value. We buy the lemons, they drive the Cadillacs.

4. The chance of the Treasury recovering any value from their purchases of bad debt is near zero. The taxpayers will be stuck with paper with no buyers.

5. The long-term effect of a bailout will be to double the public debt and undercut funding for Social Security, Medicare, Medicaid, education and public health programs while increasing the tax burden of future generations.

6. The dollar will devalue as the government debt will decrease its attractiveness overseas, increasing the cost of imports and resulting in an inflationary spiral which will further undermine working people's living standards.

7. The channeling of funds to Wall Street will divert funds from getting us out of this deepening recession.

8. The bailout will deepen the financial crisis because, according to the Director of the Congressional Budget Office, it will expose the fact that many institutions may be carrying many more 'toxic assets' and reveal that those institutions are not solvent. In other words, the Treasury and Congress are freeing up bad debts to insolvent institutions.

9. The bailout is aimed at facilitating lending; but if the problem is not credit but (as the Congressional Budget Office has shown) the insolvency of the financial institutions, the solution is to create solvent financial institutions.

10. The bailout totally ignores the financial needs of 10 million homeowners facing foreclosures; the bankruptcy of small enterprises facing a credit crunch and the loss of workers' jobs and health plans for their families because of the recession.

Alternatives to the Wall Street Bailout
The speed with which this gigantic amount of public funds had been made available by the Treasury and Congress puts the lie to their argument that popular programs cannot be funded or need to be cut back. In fact, investing $700 billion in the health and education of American workers will increase productivity, open markets and expand consumer power leading to a virtuous circle increasing public revenues and eliminating the budget and trade deficits.

Public funds invested in manufacturing, construction, education and health care leads to products with real use value and has a multiplier effect on the rest of the economy instead of ending up in the pockets of billionaires who speculate and invest in mergers and overseas buyouts.

The Treasury and Congress have inadvertently revealed that federal financing is readily available to rebuild the US economy, guarantee decent living wages and provide health care for everyone if we choose elective officials who are committed to the needs of the US workers and not the Wall Street billionaires.

(Countercurrents.org)