Today's Stories

June 23, 2008

Michael Hudson
How Should the Middle East Invest Its Oil Profits?

June 21 / 22, 2008

Alexander Cockburn
The Russert Send-Off

Jeffrey St. Clair
Adventures in the Endangered Skin Trade

Pam Martens
A Secret Oil Gusher Inside Citigroup

Mike Whitney
The Game is Over: an Interview with Michael Hudson on the Economy

Chris Floyd
Torturegate

Tim Wise
The Ugly Side of Disaster: Katrina and the Midwest Floods

Paul Craig Roberts
A Totally Lawless Regime

Michael Winship
How Countrywide Leveraged Washington

Ron Jacobs
Vietnam Blues

Ramzy Baroud
Palestine in the American Imagination

Alan Farago
The Off-Shore Drilling Scam

Michael Yates
Paul Krugman on Race: Ignorant and Disingenuous

Dave Lindorff
Keeping America Safe: Prosecuting Children as Terrorists

Bernard Chazelle
Why Israel Won't Accept a Two-State Solution

Linda Mamoun
Mearsheimer and Walt in Tel Aviv

Jo-Shing Yang
Dying of Hunger, Dying of Thirst

Robert Jensen
Fear and Hope on a Runaway Train

Website of the Weekend
Slavery By Another Name

June 20, 2008

Robert Oscar Lopez
Brownout in Black Camelot: Obama and Latino Voters

Paul Craig Roberts
John Yoo, Totalitarian

Bouthaina Shaaban
The Real Arab AIPAC

Bill Quigley
The Big Lock-Up

Moshe Adler
Is Cuba Done With Equality?

Patrick Cockburn
An End to Iraq Contractor Immunity?

Andy Worthington
John McCain, Torture Puppet

Norman Solomon
Health Care and the Ghosts of War

Martha Rosenberg
Can Wyeth Fool American Women Twice?

June 19, 2008

Ralph Nader
Why Won't Corporations Take On Big Oil?

Chellis Glendinning
Techno-Fascism: Every Move You Make

Neve Gordon
Learning to Drive in Rafah

Dave Lindorff
Killing the News in Iraq

Sheldon Richman
Habeas Corpus Saved--Barely

George Bisharat
Obama's Missteps

Jackie Corr
Dear Mr. Kilowatt

Farzana Versey
Will Gorkhaland Become a Reality?

Website of the Day
Trouble on the Range

June 18, 2008

Nicole Colson
Hunger and Humiliation in the Belt-Tightening Economy

Rev. William E. Alberts
The "F" Word and the White Press

Vijay Prashad
Obama's Genuflections to the Swing Lobby

Parvez Ahmed
Oil Prices, Market Regulation and the Election

Bob Moss
Judicial Warfare in Boumediene

Dave Lindorff
The Elephant in the Room

David Wilson
Bush in London

June 17, 2008

Conn Hallinan
The Brain Trauma Vets

Wajahat Ali
Chomsky Speaks: On Iran and Iraq

Marjorie Cohn
Reviving Habeas Corpus

Uri Avnery
Two Professors: Mearsheimer and Walt in Israel

David Macaray
Adversarial Relationship

Rannie Amiri
Forgotten Lives in a Forgotten War

Website of the Day
Pentagon Money

June 16, 2008

Uri Avnery
An Apology

Corey D. B. Walker
The Racial Politics of Symbols

Howard Lisnoff
Files Upon Files

Dennis Loo
2008 Elections: Of Whales and Worms

Paul Craig Roberts
Obama and the Fall Into Tyranny

June 13 / 15, 2008

Douglas Valentine
McCain: War Hero or Go-To Collaborator?

Alexander Cockburn
Change, What Change?

Jeffrey St. Clair
The Politics of Timber Theft

Peter Linebaugh
On Wat Tyler Day

Ishmael Reed
The Colossus: Sonny Rollins, Take One

Joe Bageant
Old Dogs and Hard Time

Harry Browne
Ireland Shows the Way!

Andy Worthington
The Supreme Court's Gitmo Decision: What Does It Mean?

Jeff Sharlet
The F-Word

Binoy Kampmark
They Gassed Us: Agent Orange in OZ

Alan Farago
His Little Piece of the Pie

Brian Cloughley
America the Detested: the Pakistan Airstrikes

Manuel Garcia, Jr.
How to Stretch Gasoline

Reza Fiyouzat
Oil and Racism

Patrick Bond /
Richard Kamidza
How Europe Underdevelops Africa

David Yearsley
Music in the Rubble

Niranjan Ramakrishnan
Thank You, Dennis Kucinich!

Ronnie Cummins
Don't Panic; Go Organic

Dan Bacher
Bush Tries to Raid Salmon Disaster Funds

Michael Dickinson
Jesus in Megiddo Prison

Seth Sandronsky
My Father's World

Poets' Basement
Tu Fu / Rexroth

Website of the Weekend
Torture and the American Psyche

June 12, 2008

Judith Levine
As Cranes Fall and People Die

Patrick Cockburn
Amid Iraqi Fury, U.S. Offers Concessions on Military Bases

Saul Landau
The Iraq War Becomes Suicidal

Christopher Brauchli
Bush Bling-Bling: Government by Crony

Norman Solomon
Deadly Diplomacy

Helen Redmond
Why Can't We All Get KennedyCare?

Laura Carlsen
No Rest for the Working Poor

Jeremy R. Hammond
Threats Against Iran Escalate

Anne Landman
Pinkwashing: Can Shopping Cure Breast Cancer?

Website of the Day
Fire in Watts

June 11, 2008

Paul Craig Roberts
Why Oil Prices Are So High

Ralph Nader
Wall Street Gamblers

Joshua Frank
Why I Can't Support Barack Obama

Clifton Ross
Conversation in Miami: the Neoliberal Left and Socialism

Muhammad Idrees Ahmad
Whatever Happened to "Democracy Now?"

Stephen Lendman
Exposing Pentagon and CIA Corruption

Diane Farsetta
Talking Back to Bill O'Reilly

Ron Jacobs
The Sixties Painted Black

Deborah Rich
Hay Belly Nation: the FDA and the O-Word

Hop Wechsler
A Friend of Women? My Bill Clinton ... and Ours

Website of the Day
A New Path to the Waterfall

June 10, 2008

Alan Farago
John McCain and the Company He Keeps

James G. Abourezk
Deadly Fallout From Obama's Groveling Before Israel Lobby

Saree Makdisi
Banned in the U.S.A. (Almost)

Malini Johar Schueller
A Picture From Beirut

John Ross
Killing Foods, Killing People

Wajahat Ali
Rumi and Sufism

Peter Morici
Bernanke Aggravates Recession Risks

Jordan Flaherty
Inside Angola Prison, Louisiana's Last Slave Plantation

Gary Macfarlane
Collaboration on the Clearwater: Is It Legitimate?

Joanne Mariner
The Gitmo Trials: an Inglorious Start

Website of the Day
The End of the Clinton Machine?

June 9, 2008

Uri Avnery
No, I Can't: Obama, Israel and AIPAC

Nikolas Kozloff
McCain & the Republican Insitute: Promoting Iraqi Occupation for "a Million Years"

Allan Nairn
Drawing Your Last Breath Hungry

Dennis Loo
Threats on Iran and the "Batterer's Defense"

Harry Browne
Irish Euro Vote Comes Down to the Wire

C. Hand
U. S. Bid to Hike Iran's Gas Prices Seems Doomed

Peter Morici
An Unsustainable Trade Deficit

Kenneth Couesbouc
A Ripe Time for Inflation

Martha Rosenberg
The Inconvenient Senator Grassley

James L. Secor
Chinese Superstition or Unconscious Oracle?

Website of the Day
Pay Bo Diddley!

June 7 / 8, 2008

Alexander Cockburn
Obama Goes Over the Top

Ishmael Reed
How Miles Davis Changed My Life

Jeffrey St. Clair
What a Miner's Life is Worth

Nikolas Kozloff
Meet the King the Beers: John McCain and Latin America

Dave Lindorff
The High Cost of a Single War-Like Remark: Oil Prices, Israel, Iran and the U.S.

Robert Fantina
When Truth is the Casualty

Conn Hallinan
Iran and Rumors of War

Neve Gordon
The Occupation and the Politics of Death

Tom Barry
The Deterrence Strategy of Homeland Security

Patrick Irelan
Raiding the Packing House

Tim Wise
Your Whiteness is Showing

David Ker Thomson
The Hard Question

Joshua Frank
"Socialist" Wins Republican Nomination in Montana

David Yearsley
Disaster Music

James T. Phillips
1968: Year of the Rat

Joe Allen
The Real Bobby Kennedy

P. Sainath
Making Life Brighter in Kondapur

David Macaray
Should Unions be More Democratic?

B.R. Gowani
Experience and the Two-for-One

Fred Gardner
What Happened (at the DA's Office)

Peter Harley
Technology to the Rescue? Kurzweil and the Human Machines

Michael Dickinson
Surrender the Bones of Geronimo!

Jen Roesch
Where are the Real Women in Sex and the City?

Poets' Basement
Gibbons, Landau, and Buknatski

Website of the Day
Partying with the Waltons

June 6, 2008

Frank Barat
An Interview with Ilan Pappé and Noam Chomsky on the Future of Israel / Palestine

Patrick Cockburn
U.S. Extorts Iraq to Approve Military Deal

Gary Leupp
Cheney Enrages Iraqis Over Security Deal

James Abourezk
Name That Terrorist

Peter Morici
Recession Grips the Jobs Market

Faheem Hussain
What is NATO Doing in Afghanistan?

Andy Worthington
Guantánamo's Britons Go on Hunger Strike

Ayesha Ijaz Khan
How Will Musharraf Go? Impeachment or Safe Exit?

Dave Lindorff
Congress Needs to Defend Itself

Website of the Day
Backstage with Bo Diddley

June 5, 2008

Patrick Cockburn
Bush's Secret Deal Would Ensure Permanent U.S. Occupation of Iraq

Sharon Smith
Hillary's Wreckage

Nikolas Kozloff
Obama's Electoral Dilemma: Latinos or Reagan Democrats?

Linn Washington, Jr.
Police Brutality and Cover-Up in Philly

Omar Barghouti
60 Years of Nakba, 41 Years of Occupation ...

Scott Pellegrino
Jim Crow Radio: Bob Grant's Lifetime Achievement Award

John Walsh
Obama Woos AIPAC

Dan Bacher
The Parching of California

DC Larson
Nazi Rockers ... F-Off

Robert Jensen
Masculine, Feminine or Human?

Website of the Day
Ohio Cops Attack Long Walkers

June 4, 2008

Eric Walberg
Princess Patricia and the Taliban

Gary Leupp
Iran and EFPs: Chronology of a Lie

Ralph Nader
Disenfranchised Youth

Dave Lindorff
Of Whiners and Poor Losers

George Wuerthner
Farm Economics

Victor M. Rodriguez
The Puzzle of Race and Politics

Remi Kanazi
Why a Cultural Boycott of Israel is Needed

Stephane Luçon
Renault's Romanian Fairyland Suspended

Farzana Versey
The Tablighi Jamaat Movement

Laray Polk
The Militarization of Space

Website of the Day
Red State Rebels

June 3, 2008

Paul Craig Roberts /
Lawrence M. Stratton
Legislating Tyranny

Mike Whitney
The Withering Economy

Steve Early
San Juan Showdown

Manuel Otero
Why Hillary Won Puerto Rico: the View from the Colony

George Bisharat
The Hope of a Victimized People

Nikolas Kozloff
Obama's VP Quandry

Dan Bacher
Death on the Salmon Highway

Website of the Day
Censoring Bill Knott?

June 2, 2008

Uri Avnery
The Olmert Scandal

Nikolas Kozloff
Obama's Latino Problem Getting Worse

Allan J. Lichtman
Revisionist History: Bush, Borah and Hitler

Malini Johar Schueller
The Color of Randomness: Returning to the US From Beirut Via Syria

Robert Weissman
What's Driving Skyrocketing Oil Prices?

Peter Morici
Bailing Out Wall Street

Manuel Garcia, Jr.
Don't Get Burned: How to Protect Yourself From Raytheon's Pain Gun

John Ross
Celebrating Catholic Fanaticism in Mexico

Ahmad Al-Akhras
Encounters with the Watch List

Website of the Day
Man on Earth

May 31 / June 1, 2008

Alexander Cockburn
The Worst is Yet to Come

Jeffrey St. Clair
Arkansas Bloodsuckers

Gary Leupp
How McClellan Prettifies Bush

Stan Cox
Broken Agriculture

Rannie Amiri
Lebanon: the Domino That Wouldn't Fall

P. Sainath
A Guaranteed Day's Work--in the Fields, at 110 Degrees, for $2 a Day

Binoy Kampmark
Going Bankrupt in Vallejo

Robert Fantina
Bush, Rice and McClellan

Seth Sandronsky
Will There be Water Riots, as Sacramento Goes Dry?

Corporate Crime Reporter
Death Penalty for Bush?

Anthony DiMaggio
Gaming the Ghetto: Grand Theft Auto IV, Racist Media and the Concrete Jungle

Karl Grossman
A Half-Trillion for Nukes

Matt Reichel
From Vegas to the Heartland and Back Again

Paul Myron Hillier
Of Gas and God

Andy Worthington
Suicide at Guantánamo

David Yearsley
And the Winner is ... Wayne Shorter

Daniel Cassidy
Free Lunch

Charles Thomson
If Hitler Had Been a Hippy ...

Gary Corseri
A Dream Deferred: Activism and the Arts

Wajahat Ali
Sex and the City Through a Man's Eyes

Ron Jacobs
Robins Weep

Poets' Basement
McNeill and Davies

Website of the Day
Last Charge of the Light Horse

May 30, 2008

Bassam Aramin
Here's the Truth You've Been Running From

Andrew Cockburn
Petraeus' Iran Obsession

Saul Landau
How We Got Into This Mess

Nikolas Kozloff
Meet South America's New Secessionists

Robert Sandels
Turning Back the Clock on Cuba

Dave Lindorff
Talk is Cheap

Martha Rosenberg
Raiding Big Meat; Arresting the Wrong People

Harvey Wasserman
Lieberman & McCain: Linking Internet Censorship and Atomic Reactor Terror

Doug Giebel
A Plague on Both Your Houses (of Congress)

Shaun Harkin
The Trial of the Raytheon 9

Website of the Day
The Once and Future Environmental Movement

May 29, 2008

Jeffrey St. Clair
Bill Clinton and the Rich Women

Nikolas Kozloff
Puerto Rico, Obama and the Politics of Race

Col. Dan Smith
Deceiving the Dead

Karl Grossman
The Most Lucrative Incentive for Nuclear Power in the History of the United States

William S. Lind
Inside the Washington Game

Robert Weissman
What to do About the Price of Oil

Dave Lindorff
Why Puerto Rico Won't Matter

David Macaray
A Union Fable

Chris Genovali
Fear and Loathing in the Northern Rockies

Laura Carlsen
Mexico's Battle Over Oil

Website of the Day
Support Antiwar.com

May 28, 2008

Wajahat Ali
The Libertarian Dark Horse: An Exclusive Interview with Ron Paul

Ralph Nader
What's Really Driving the High Price of Oil?

Brian McKenna
Why I Want to Teach Anthropology at the Army War College

Corporate Crime Reporter
Why Vincent Bugliosi Wants to Prosecute George W. Bush for Murder

Brian Cloughley
The Attack on Damadola

Eric Walberg
Opium for the Masses from Afghanistan

Michael Dickinson
Raytheon's Pain Ray: Coming to a Protest Near You

Ijaz Khan
Opening Windows in Pakistan

Website of the Day
Older Than America

May 27, 2008

Alexander Cockburn
In Her Mind She's Killed Before: the Plot to Assassinate Ralph Nader

Greg Kafoury
Is Obama Turning (Further) Right?

Jean Bricmont
Western Delusions

Tim Wise
Farrakhan is not the Problem

Ricardo Alarcón
Puerto Rico's Turn

Stephen Soldz
APA Supports Psychologist Engagement in Bush Regime Interrogations

Andy Worthington
The Guantánamo 16

Alan Singer
Vapid, Stupid and Insulting: Chuck Schumer Speaks to the Graduates

Richard Neville
Storm in an A-Cup

Susie Day
Gone with the W

May 26, 2008

Uri Avnery
The Syrian Option

Bill Quigley
War Immemorial Day

Col. Dan Smith
Retreating from Hell: a Different Memorial Day

Cindy Sheehan
Why Memorial Day is a Double-Whammy for Me

Marjorie Cohn
Hillary's Assassination Politics: Her Last Shot?

Fred Gardner
Does the VA Care?

Raymond J. Lawrence
Pain Pays: Getting Rich at NY Presbyterian Hospital

Harvey Wasserman
Mugging the Election System

Moncia Benderman
Truth Matters

David Rovics
In Praise of Utah Phillips

Website of the Day
Fox News Jokes About "Knocking Off" Osama and Obama

May 24 / 25, 2008

Alexander Cockburn
Death-Wish Hillary Primes Manchurian Candidate

Jeffrey St. Clair
Yellowstone: How Sununu Shrank the Ecosystem

Barbara Rose Johnston
Dam Legacies, Damned Futures

Nikolas Kozloff
U.S. Fourth Fleet in Venezuelan Waters

Adriana Kojeve
The Environment and the 2008 Elections

Robert Fantina
Justice Department's Revelations on Torture

Dave Lindorff
Bush's War on Children in Iraq

David Yearsley
The War on Kitsch

Nelson P. Valdés
The Buying of "Democracy" Agents in Cuba

Kathleen M. Barry
Celebrating Ethnic Cleansing

John Ross
Mexico's Narco Opera Reaches for High Point

Allison Kilkenny
Apathy Doesn't Live in Bronx

Fred Gardner
Orangeburg, 1968

Elizabeth Schulte
Can the Whole World be Fed?

Daniel Gross
Remembering the Wendy's Massacre: the Dangerous Side of Retail Work

Christopher Brauchli
The Search for a Token Right-winger

Richard Rhames
A Nation of Sheep

Daniel Cassidy
My Mother

Poets' Basement
Davies, Klipschutz and Willson

Website of the Weekend
Happy Birthday, Bob

May 23, 2008

Paul Craig Roberts
War Abroad, Poverty at Home

Alan Farago
The Radical Extremists of the Building Industry

Conn Hallinan
Ballots and Bullets: From Beirut to Bolivia

Mark Engler
The World After Bush

George Wuerthner
Cars and Cows: Living Large in America

Kamran Matin
The Kurds and American Neo-Imperialism

Sandy Boyer /
Shaun Harkin
The Long Incarceration of Pol Brennan

Robert Weitzel
A "Holey" Instrument of Peace in Iraq

Cindy Sheehan
An Uphill Battle

Liaquat Ali Khan
Pakistan's Futile Constitutional Amendment

Website of the Day
A Message from the Moral Compass of the McCain Campaign

May 22, 2008

Vijay Prashad
Racist Grammar

Joanne Mariner
A Military Commissions Cheat Sheet

Sharon Smith
60 Years of Apartheid

Jeff Birkenstein
Disaster Redux: Some Early Thoughts on the Earthquake in China

Brendan McQuade
From Obama to the PRTs in Iraq

Peter Morici
The Sorry State of the Banking Industry

Niranjan Ramakrishnan
Restoration Boulevard

Dave Zirin
What I Want to Ask Mary Tillman

Ron Jacobs
CPR for the Antiwar Movement

Stephen Lendman
Immoral Hazard

Website of the Day
Hagee: God Sent Hitler to Drive the Jews to Israel

May 21, 2008

Jeffrey St. Clair
The Gothic Politics of Hillary Clinton

Nikolas Kozloff
U.S. Military Bases in South America

Alan Farago
Miami, Cuba and the Presidential Campaign

Dave Lindorff
Big John and the Scary, Scary Iran Threat

David Model
Genocide in Iraq?

Eric Walberg
Afghanistan: Who is the Enemy?

Franklin Lamb
Lebanon Gets a President

Kenneth Couesbouc
Tax Against Tyranny

Website of the Day
Child Labor and War-Affected Children: a Photo Essay

May 20, 2008

Ralph Nader
A Trip Inside Google

Uri Avnery
With Friends Like These

Patrick Irelan
The Empire and the Fleet

Ray McGovern
Come Out, Admiral Fallon, Wherever You Are

David Macaray
The UAW Strike Against American Axle

Chris Genovali
Big Oil on the Water: Skating Around the Tanker Issue

Ibrahim Fawal
Birmingham, Israel and the Nakba

Christopher Ketcham
Let Us Now Praise Famous Suicides

Andy Worthington
Guantánamo Trial Delayed

Martha Rosenberg
Merck is a Repeat Offender

Website of the Day
Defend the Students Who Pied Tom Friedman

May 19, 2008

Saul Landau
Cuba Will Live

Paul Craig Roberts
The Metamorphosis of the Conservative Movement

Brian McKenna
Brotherly Love in Philly's Badlands

Patrick Cockburn
City of the Dead: Mosul on Lockdown

B. R. Gowani
The Central Problem Pakistan Needs to Tackle

Dr. Trudy Bond
Psychologists and Torture: If Not Now, When?

Cindy Sheehan
Whose War is It?

John Mohawk
The Warriors Who Turned to Peace

Remi Kanazi
When Free Speech Doesn't Come for Free

Robert Day
I Get a Horse

Website of the Day
Evolve or Die

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America's Free Lunch is Over

How Should the Middle East Invest Its Oil Profits?

By MICHAEL HUDSON

Every week Mid-Eastern countries acquire more dollars in payment for their oil and other exports, and also for rising U.S. investment in their stock markets and other property. This confronts them with a problem: What can they do with these dollars?

Traditionally, exporters have saved their export earnings by building up their assets. But is it still realistic for them to acquire more dollarized assets?

Central banks throughout the world presently hold some $2.5 trillion of U.S. Treasury bonds, and another trillion dollars in private-sector U.S. dollar debt. As the dollar’s exchange rate falls, these banks suffer losses when their holdings are denominated in their own currencies. Even more serious, the principal itself is now in question. There is no foreseeable way in which the United States can redeem its foreign debt. Its trade surplus continues to deteriorate, while its foreign military spending adds to the overall balance-of-payments deficit.

This means that the United States is pumping more and more dollars into the rest of the world without any means of repaying them – or any intention to do so. That is why foreign countries are beginning to treat these dollars as “hot potatoes,” trying to get rid of them as fast as they can.

But how can they all do this? China is using its new dollar inflows to try and buy up foreign raw materials assets, land and other assets needed for its long-term growth. And some Middle Eastern countries are buying long-term supply agreements for food and raw materials produced abroad. But fewer countries are eager to accept these dollars. And the U.S. Government is blocking foreign investment in the most desirable and remunerative domestic U.S. sectors as its politicians become more nationalistic. This threatens to limit foreign investment in the United States to the junk-mortgage market, to real estate that is falling in price, and loans to bail out U.S. banks and financial institutions as they fight off insolvency and their stock-market prices plunge. Middle East purchases of Citibank shares last year are the most notorious example.

This means that Middle Eastern oil exporters – and indeed, European industrial exporters – are in effect giving their oil and other products away to U.S. consumers in exchange for paper IOUs that are in danger of becoming unspendable and hence worthless.

Fortunately there is a better alternative. That is for Middle Eastern governments to invest their export earnings in building up their own economies rather than that of the United States and those of other dollar-area countries. Two thousand years ago, even during the high tide of Greece and the Roman Empire, the Middle East had long been the world’s most entrepreneurial and prosperous region. What is stopping it from reclaiming this historic position?

A major problem is its arid desertification. This problem can be largely overcome by a combination of domestic infrastructure spending and long term international barter deals. Such deals are the indicated way to go when major currency markets become unstable – and it looks like exchange rates are going to keep on zigzagging and spiking over the coming decade or so.

There is a striking parallel with the last time the Middle East began to receive sharply higher export earnings, after 1973. Back then, it arranged oil-for-infrastructure deals with Korean, Japanese and other Asian firms to build roads, hospitals and other construction needed to raise productivity and living standards. Today, China has entered the mix. And there is still a long way to go for investment in the array of public and private services that are needed to make the region one of the world’s most prosperous.

The emergence of India, China and Pakistan as economic and even military powers (at least for defensive purposes), as well as Russia and Central Asia, already has led to creation of the Shanghai Cooperation Organization, which Iran already has joined. The world is becoming multi-polar, if only as a defensive response to U.S. attempts to give NATO a post-Cold-War role by extending it into the Middle East, Indian and Pacific regions.

Inasmuch as Asia and India promise to emerge as the world’s major industrial centers – perhaps joined by South America’s leading nations – this economic realignment is inherently political in character. To speak bluntly, the United States opposes it as threatening its desire for unilateral hegemony. And bluntly is just how British Brigadier-General James Ellery CBE spoke on April 22 at the School of Oriental & African Studies (SOAS) in London. He described the U.S.-British Iraq War as having been fought to stop “the tide of Easternisation” – a shift in global political and economic power toward China and India, which together import some “two thirds of the Middle East’s oil.”

General Ellery is in a position to know. He was the Foreign Office's Senior Adviser to the Coalition Provisional Authority in Baghdad after 2003. In his talk he explained that U.S. global strategists were concerned that in response to the U.S. economic sanctions against Iraq, it – like Iran – might turn its economic focus eastward.

This is the U.S. nightmare, because it has used the Middle East as a piggy bank to bail out the weakening American financial economy. After the first grain-and-oil shock in 1972-73 – when the United States quadrupled grain export prices, and OPEC responded by quadrupling oil prices – U.S. Treasury officials told Middle Eastern rulers that they could charge as much as they wanted for oil (thus providing domestic U.S. oil majors with a price umbrella that enriched their coffers), but that if they did not recycle their export earnings to the United States, this would be viewed as an act of war.

This means that for the Middle East to use its export earnings to develop its own economies may require breaking with the U.S. diplomatic sphere. At the very least it gives the region an interest in getting the United States to end its occupation of Iraq – including the military bases it is now in the process of constructing.

So I have a modest proposal for how to negotiate this quantum change in Middle Eastern-U.S. geopolitics: Offer to buy out the U.S. bases under construction, perhaps including the Green Zone buildup, at fair market value (certainly not at the exorbitant prices that Republican campaign contributors have been paid, with contracts that both the United Nations and the U.S. Congressional Budget office have found to have been corrupt and handled with improper oversight). This can best be done by making clear to the United States that the free lunch it obtained after going off gold in 1971 is over.

This may sound like giving the United States its way in what looks like a protection racket. But protection may be well worth buying under today’s conditions.

Two centuries ago the United States announced the Monroe Doctrine: Europe should leave the Western Hemisphere to U.S. as a sphere of influence. Is it not time for the world to act symmetrically and ask that the United States for its part leave the Eastern Hemisphere to that region’s nations, to develop as they wish in peace?

The more publicly the Middle Eastern countries can make this kind of trade-off, the more chance it has of being adopted as a policy plank in this year’ U.S. presidential campaign.

This article is reprinted from The Gulf (a Bahrain news-weekly).

Michael Hudson is a former Wall Street economist specializing in the balance of payments and real estate at the Chase Manhattan Bank (now JPMorgan Chase & Co.), Arthur Anderson, and later at the Hudson Institute (no relation). In 1990 he helped established the world’s first sovereign debt fund for Scudder Stevens & Clark. Dr. Hudson was Dennis Kucinich’s Chief Economic Advisor in the recent Democratic primary presidential campaign, and has advised the U.S., Canadian, Mexican and Latvian governments, as well as the United Nations Institute for Training and Research (UNITAR). A Distinguished Research Professor at University of Missouri, Kansas City (UMKC), he is the author of many books, including Super Imperialism: The Economic Strategy of American Empire (new ed., Pluto Press, 2002) He can be reached via his website, mh@michael-hudson.com

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