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The New Print Edition of CounterPunch, Only for Our Newsletter Subscribers! ISRAEL'S IRON HEEL It began when Harry Truman was in the White House. It has continued under every U.S. President since, and in this extended report we lay out the consequences of 60 years of brutal Israeli occupation of Palestinian land. Feroze Sidhwa details the human price of systematic, intentional destruction of the Palestinian social and economic fabric: physical and mental deterioration, traumatized youth, a savaged environment. Nancy Glass and Reem Salahi describe the Kafka-esque conditions in which Palestinian lawyers try to defend their people in Israel's courts. Get your copy today by subscribing online or calling 1-800-840-3683 Remember contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now. Note: Thanks to a last minute surge of donations from CounterPunchers across the globe we met and surpassed the goal of our annual funding appeal. More than 2,000 CounterPunchers helped us raise $76,175! A heartful thanks to one and all! Remember, if you haven't yet donated, contributions to CounterPunch are tax deductible and CounterPunch books and gear make great holiday presents. Order CounterPunch By Email for Only $35 a Year and Receive a Free Copy of "Imperial Crusades: a Diary of Three Wars" by Cockburn and St. Clair

Today's Stories November 27, 2007 Marjorie Cohn Remembering Victor Rabinowitz November 26, 2007 Kathleen and Bill Christison Heading for Annapolis Paul Craig Roberts The End of All That David Macaray Enter Mediator Sameer Dossani Pakistan's Wounded Dictator Roger Burbach The Final Battle in Bolivia Mark Scaramella Guns and Greed in the Emerald Empire Brian McKinlay Howard's End Rick Kuhn The Fall of a Racist Union Buster Binoy Kampmark Ruddslide and Dull Alec Monica Benderman What Do You Know of War? Brenda Norrell Return to Alcatraz Website of the Day Ghostworld by DJ Spooky   November 24 / 25, 2007 Alexander Cockburn The Ordeal of Catherine Wilkerson, MD Robert Fisk Darkness Falls on the Middle East Saul Landau Norman Mailer will Not R.I.P. Jeffrey St. Clair Justice Stephen Breyer, Cancer Bonds and the Origins of Neoliberal Environmentalism Rannie Amiri Beirut's Black Friday Christopher Brauchli Iraq Embassy as Gilded Palace Daniel Gross The Gap and Black Friday Mike Whitney "A Generalized Meltdown of Financial Institutions" Marjorie Cohn Iran and the 2008 Elections David Rosen Senior Sex: the Real Sexual Life of Aging Americans David Michael Green If Conservatism is the Ideology of Freedom .... Kenneth Rexroth When Euripides Played the Hindu Kush: Greeks and Buddhists in Afghanistan Muhammad Iqbal Trans. Shahid Alam Ghazal Website of the Day Aerial Footage of Delta Fish Kill November 23, 2007 Gary Leupp Killing the Buddha in Pakistan's Swat Valley Laura Carlsen Coming to Terms with Diversity in Bolivia: an Interview with Alvaro Garcia, Bolivia's VP David Macaray Keeping Labor Unions Out Andy Worthington Former Guantánamo Detainee Seeks Asylum in Sweden Clifton Ross Trashing Chavez: Keith Olberman's Toxic Rant Seth Sandronsky Battling Sodexho Dan Bacher Death in the Delta: Thousands of Fish Stranded by Bureau of Reclamation William A. Cook The Myth of Middle East Peace Website of the Day Waiting for the Guards: Stress Techniques as Torture, a Short Film   November 22, 2007 Alan Farago Who Lost America's Everglades? Greg Moses A Thanksgiving Basting Dave Lindorff Impeachment is Back on the Table Mike Ely Native Blood: the Myth pf Thanksgiving Omar Azfar Gore for President of Pakistan?   November 21, 2007 Vijay Prashad Our Dictator, Their Democracy Martha Rosenberg Undercover at a Turkey Slaughtering Plant Manuel Garcia, Jr. Epiphany on the Glacier John Ross The Last Days of Mexican Corn Brian McKenna Cancer Terrorists Unmasked Stephen Soldz Isolation Torture Routine at Guatánamo Monica Benderman Needing Peace Ben Terrall Slavery in the Fields: The Real Price of Sugar Website of the Day Mercy for Animals   November 20, 2007 Oren Ben-Dor Why Israel Has No "Right to Exist" as a Jewish State Wajahat Ali An Interview with Norman Finkelstein Alan Farago The Dark Arts and the Bush Dynasty Marjorie Cohn Musharraf Plays Bush for a Fool Ralph Nader Green is Gold? Andy Worthington Guantánamo Whistleblower Launches a New Attack on Rigged Tribunals Sara Olson When Going AWOL is the Only Escape Dave Lindorff Likelihood of Iran Attack Gains Credence Paul Krassner The First Amendment, a Dialogue Website of the Day Joanne Mariner on Torture November 19, 2007 Winslow T. Wheeler Why Congress Won't Reform China Hand The U.S. Game Plan in Pakistan Allan Nairn Sitting Around Talking, in Indonesia Uri Avnery How to Get Out? David Macaray The Chalice that Poisoned the Labor Movements Dave Lindorff Democrats in Future Shock: They Could Lose It All in 2008! Bill Quigley Twenty Thousand Protest at Ft. Benning; Eleven Face Federal Criminal Trials Ron Jacobs Sitting on the Group W Bench: War, Thanksgiving and Arlo Guthrie Sunsara Taylor Legalized Rights for Fertilized Eggs? Binoy Kampmark Why Steve Irwin--You're Dead! Heather Gray Another Look at W.E.B. DuBois Website of the Day The Meat Market     November 17 / 18, 2007 P. Sainath Neoliberalism's Price Tag: 150,000 Farm Suicides in India David Rosen The Scarlet Hypocrites: Republicans, Christians and the Politics of Adultery Mike Whitney Pentagon Cover Up: 15,000 or More US Deaths in Iraq War? George Wuerthner Saving the Big Wild Brenda Norrell The Case of Jim Main, Jr: In Montana, Indians are Guilty Until Proven Innocent George Ciccariello-Maher Of Submarines and Loose Screws Karim Makdisi Lebanon is Hanging by a Thread Marie Trigona Wal-Mart in Argentina Valerio Volpi The Catholic Church, Incorporated Fred Gardner The Straight-Ahead Runner Robert Fantina The White House Press Office Mike Ferner Thank God for the Senate Republicans! Missy Comley Beattie The Radical Majority Kenneth Couesbouc Circles of Power Patrick O'Hayer A Portrait of Mailer and a Young Poet Poets' Basement Davies, Buknatski and Ford   November 16, 2007 Cockburn / St. Clair The Vices of Hillary Clinton: Secrecy, Intransigence and War Dave Zirin The Indictment of Barry Bonds: Busted by a Broken System Gary D. Barnett A Day in the Life of an Unwilling Federal Agent Alan Farago Sprawl, Mortgage Fraud and Political Corruption Dave Lindorff Two Brothers and Two Scandals Russell Mokhiber Pelosi and Me: "What Should be Done with Those Protesters?" Robert Ovetz Cargo Ships in Paradise: Shipping Lanes Threaten the Yosemite of the Sea Brenda Norrell "Today We Experienced America:" Arresting Indigenous People on the Border David Swanson Wolf Blitzer Loses Democratic Debate Peter Letheby Outside the Box on the Great Plains Website of the Day Why Activism Fails   November 15, 2007 Cockburn / St. Clair Hillary Clinton in Arkansas Adolfo Gilly The Spirit of Revolt Peter Bohmer 10 Days That Shook Olympia Andy Worthington The Trials of Omar Khadr: Gitmo's Child Soldier Gray / Derks Obama's Pitch to South Carolina's Black Churches Affronts Gay Groups Liaquat Ali Khan Liberating Pakistan Dave Lindorff Where's the Party? Christopher Brauchli Tipping Point: the Politics of Gossip Anthony Papa Racism as Law: Crack Cocaine Sentences Martha Rosenberg Merck's Big Write Off Ben Terrall Thank You, Ehren Watada Website of the Day On the Colorado: Drought, Climate Change and Water Supplies November 14, 2007 Cockburn / St. Clair The Making of Hillary Clinton James Petras Venezuela Between Ballots and Bullets Al Giordano Campaign 08: Don't Trust Anyone Over 50 Paul Craig Roberts The Lobby Andy Worthington Innocents and Foot Soldiers Stephen Lendman Torturing Palestinian Detainees Fatima Bhutto Aunt Benazir's False Promises: the Dismantling of Pakistani Democracy Martin Smith Norman Mailer and the "Good War" Jeff Leys Slip Sliding Away: House Votes on War Funding Website of the Day Why the Writers are Striking November 13, 2007 Alexander Cockburn Hillary's Big Problem and How Bill Can Fix It Jeffrey St. Clair Mailer and Us: the Writer as Fighter Robert Bryce The Pakistan Fuel Connection David Macaray The Teamsters and the Hollywood Strike Mike Whitney Bulletins from the Titanic Ralph Nader Pakistani Lawyers vs. American Lawyers Nikolas Kozloff Chavez Blasts the Spanish King Jordan Flaherty Education Versus Incarceration in Tallulah, Louisiana B. R. Gowani Dear Mrs. Bhutto Website of the Day Monty Python: "Fuck You, Very Much FCC"   November 12, 2007 Vicente Navarro Why Hillary's Health Care Plan Really Failed Ben Brown Letter from Ho Chi Minh City: a Tribute to My Vietnam Vet Father Omar K. A Pakistani Lawyer's Testimony: Life Under the Brutal Emergency Sadia Abbas The Roots of Pakistan's Political Crisis: Corrupt Elites and a Kleptocratic Military Farzana Versey Mailer's Miasma Richard W. Behan The Political Crimes of Complicity Paul Krassner Asshole of the Year: Congratulations Tim Russert! Cindy Sheehan Faith and War Peter Stone Brown The Return of Levon Helm Dave Lindorff Dennis, You are Not Alone Website of the Day Police Attack in Olympia   November 10 / 11, 2007 Alain Gresh Uncle Sam's New Backyard: How to Turn a Region into a Graveyard Mike Whitney For Whom the Closing Bell Tolls: the Last Dead Bull on Wall Street Ron Jacobs A View from the Pakistani Left: an Interview with Farooq Tariq Jeffrey St. Clair The First Dambuster: a Coyote Story Alan Farago Tangled Up in Blue: a Brief History of Florida Environmentalism Binoy Kampmark When Language Drowns: Torture in America Robert Fantina Legitimizing Torture Fred Gardner Psychological Torture in the Name of Family Values Ayesha Ijaz Khan The General in His Labyrinth Nicola Nasser NATO's Southward Drift Philip Rizk The Blame Game in Gaza Michael Dickinson Condom Nation: the Pope vs. Terry Higgins Joel S. Hirschhorn The Grand Delusion: a Conspiracy of Two Parties Paul Krassner Flunking Out of the Electoral College Wadner Pierre / Joe Emersberger The Ongoing War on Journalists in Haiti   November 9, 2007 Patrick Cockburn In the Kandil Mountains with the PKK Mohammed Hanif Musharraf and the Drunk Uncle John Ross Blackwater Goes to Mexico Mike Whitney Ron Paul, Big Media's Invisible Candidate Tom Barry In Latin America, the Hillary Clinton Policy is the Bush Policy Corporate Crime Reporter Is the AFL Trying to Derail Single Payer Health Care? Badruddin Khan Pakistan and the Israel Lobby David Macaray The WGA STrike: the Empire Strikes Back Martha Rosenberg The Blood Sport of Vice Presidents Website of the Day Stryker Blockade!   November 8, 2007 Kathleen & Bill Christison Meeting the Other in Israel and Palestine William Loren Katz Waterboarding in American History Mike Whitney The Long Fall: a Market Without Parachutes Sheldon Richman Why Woodstock May Have Saved John McCain's Life Liaquat Ali Khan Solidarity with Pakistan's Lawyers Marc Gardner The Victims of "Jessica's Law": Parolees Without Rights (or Homes) Jackie Corr The Big Fish from Whitefish: Montana, the Last Retreat of the Investment Banker? Brenda Norrell Between Bombs and Border Walls Dave Lindorff Ridiculing Impeachment at the New York Times China Hand Rewriting the History of the Sudan Calamity Sen. Russ Feingold FISA and America's Basic Freedoms: Let's Not Repeat the Mistakes of the Patriot Act Website of the Day The Welfare Poets Meet Hugo Chavez   November 7, 2007 Paul Craig Roberts Dollar's Fall Collapses the American Empire Russell Mokhiber Pelosi and Me: Can't the Democrats End the War By Not Bringing the Funding Bill to the Floor? Vijay Prashad The Apotheosis of Bobby Jindal Niranjan Ramakrishnan Educating Pakistan: What Mukasey Can Teach Musharraf Alan Farago To Bee or Not to Bee? The Politics of Colony Collapse David Macaray The Writers' Guild Strike: Is There an Ice-Breaker? Nikolas Kozloff The Case of the Slimy Senator: Chuck Schumer Greenlights Mukasey Charlotte Laws What We Learned from Stephen Colbert's Presidential Campaign Daniel White Zahid's Story William Cook The Politics of Servility: Congress and the Israel Lobby Website of the Day Safe Lawns   November 6, 2007 Mike Whitney Welcome to Year 27 of the Reagan Revolution Ralph Nader Who Determines the Price of Oil? Andy Worthington The Torture of Ali al-Marri Pam Martens Wall Street Metes Out Street Justice to Citigroup Liaquat Ali Khan Pakistan's Dark Future William Schroder The Return of Water Torture Stephen Lendman Punishing Gaza William Blum Cuba and Original Sin Former US Intelligence Officers A Memo on Torture, Intelligence and Mukasey   November 5, 2007 Alexander Cockburn How I Spent the Eighth Brumaire Russell Mokhiber Pelosi and Me: The Democrats and Single Payer David Macaray How to Turn Workers Against Each Other (and Make Them All Poorer) Gary Leupp General Musharaff's "State of Emergency" Dave Lindorff Those Minot Nukes Ludwig Watzal Israel's Dilemma in Palestine Patrick Cockburn Tensions Ease in Iraqi Kurdistan Peter Stone Brown John Fogerty Makes Peace with His Past Michael Simmons Yo! What Happened to Peace? Website of the Day Petition: In Defense of the Morton West HS Antiwar Students   November 3 / 4, 2007 Tariq Ali Pakistan Sinks Deeper into Night David Price Army's Price Salesman of Counterinsurgency Manual Seeks to Defend Stolen Scholarship Jeffrey St. Clair Splitsville Alan Farago The Housing Crash, Suburban Sprawl and the Crisis of the American Middle Class Paul Krassner He's Back! Don Imus Meets Michael Richards Rannie Amiri Why the U.S. is Safeguarding Iraq's War Criminals P. Sainath Indexing Humanity, Indian Style Ayesha Ijaza Khan Pakistan in a Daze Robert Fantina Is the Bush Administration Talking Itself Into a War With Iran? Seth Sandronsky The Politics of Health Care in California Ron Jacobs The Bebop of Baraka Ramzy Baroud A Case for Arab Dignity Heather Gray When Capitalists Get a Free Ride   November 2, 2007 Dr. Mary Pipher Acting on Conscience: Psychologists and Abusive Interrogations Saul Landau How Pete Stark Became a Pariah Andy Worthington Guantánamo as House Arrest Sharon Smith A Tale of Two Stadiums Gary Leupp Fascist Beatifications: the History and Politics of Sainthood Gregory Harms The Chorus of Slander on Palestine Christopher Brauchli Racism in High Places Peter Morici The Falling Dollar and the Stubborn Trade Deficit Dave Lindorff The Easy Way to Stop the Looming US Attack on Iran David Penner Zombie Nation Website of the Day Fall in Yosemite   November 1, 2007 Paul Craig Roberts The Wages of Hegemony Patrick Cockburn The Most Dangerous Dam in the World Dave Lindorff The Air Force Report on the Minot-Barksdale Nuclear Missile Flight Jonathan Feldman The Strange Political Economy of Death in the South Mike Ferner They Met the Resistance in Iraq William S. Lind A Question for Would-Be Presidents Diana Johnstone "Fascislamism" Versus "Shoah Business" Jacob Hornberger The War on Telephone Privacy A..K. Gupta The Apocalypse will be Televised Lyuba Zarsky / Kevin Gallagher The Enclave Economy of Mexico's Silicon Valley Felice Pace Does the SPLC Equate Anti-Zionism with Anti-Semitism? Website of the Day This One's for You, Ed Abbey   October 31, 2007 Bill Quigley New Orleans' Broken Criminal Justice System Rev. William E. Alberts A Trail of American Blood: From the White House to CBS News Ray McGovern Attacking Iran for Israel Eric Walberg Poisonous Espionage: Litvinenko and the New Cold War V. G. Smith The Second Death of Guy Môquet Luis J. Rodriguez "Social Cleansing" from Guatemala to LA Sheldon Richman Bush has Time to Run the World Walter Brasch A Real Halloween Scare Website of the Day Boogie Rocks! October 30, 2007 David Price Pilfered Scholarship Devastates Gen. Petraeus's Counterinsurgency Manual M. Shahid Alam The Pakistan Question Andy Worthington The Epiphany of Matthew Waxman: a Government Insider Turns Against Gitmo Patrick Cockburn The Bicycle Bomber of Baquba Anthony Papa The Twisted Logic of Drug Laws Floyd Rudmin What "All Options are on the Table" Really Means Sherwood Ross Giuliani and Torture Website of the Day The Worst Lobby? You Decide   October 29, 2007 Lisa Hajjar Inside Israel's Military Courts Joe DeRaymond The Politics of Lethal Injections Patrick Cockburn The High Stakes in Iraqi Kurdistan Isabella Kenfield / Roger Burbach Corporate Murder in Brazil Fred Gardner The Frivolous Investigation of Dr. Sterner Farzana Versey Caricaturing Islam Stephen Fleischman The Greening of the Oligarchy Marcelle Cendrars The Congressional Rip Cord Eamonn McCann Dan Keating, the Last of the Republican Irreconcilables Martha Rosenberg For Halloween, Ann Coulter Dresses as .... Ann Coulter! Website of the Day Campaign 2008   October 27 / 28, 2007 Alexander Cockburn So Much for Islamo-Fascism Awareness Jeffrey St. Clair The Dam That Isn't There James Bovard Breaking Down an Innocent Man: The FBI's Right to Threaten Torture Ralph Nader Beyond the Rule of Law M. Reza Pirbhai The Wahhabis are Coming, the Wahhabis are Coming! Robert Sandels Pay the Invaders! Cuba, Claims and Confiscations Jacob G. Hornberger Ruling By Decree Missy Beattie The Arsonists in the West Wing John Ross U.S. Eyes on Oaxaca Robert Fantina Condi Rice, the Imperial Cheerleader Ron Jacobs Labor at the Crossroads Ali Moayedian In Search of Logic About Iran David Michael Green What If We Had a President Who Didn't Give a Damn About Terrorism? Poets Basement Block, Davies and Ford Website of the Day Bring 'Em Home: a Music Video   October 26, 2007 Brian Cloughley Revenging Bloodshed Saul Landau Portrait of Rudy Ahmad Al-Akras Getting Justice in the HLF Case Franklin Lamb Does "Loving" Lebanon Mean Never Having to Say You're Sorry? Mike Whitney Murdoch's Cuckoo's Nest Dave Lindorff Home of the Brave? Reducing US Casualties By Killing More Civilians Alan Farago A Castro Behind Every Bush Yifat Susskind Conscripting Feminism into the War on Terror Website of the Day Dead Life in a Political Prison October 25, 2007 Jeffrey St. Clair / Joshua Frank Iraq's Environmental Crisis Manuel Garcia, Jr. Homes of the Crash Test Dummies Paul Craig Roberts The Fraudulent War on Terror Col. Dan Smith The Politics of Paranoia: Jane Harman's War on the First Amendment Alan Farago The Way to Paradise? Chris Kutalik The Lesson of the Chrysler Rebels Brian McKinlay John Howard and the Curse of Bush Cindy Sheehan Pete, Nancy, George and WW III Website of the Day Support the America's Program!   October 24, 2007 Natalie Washington-Weik White Fantasies About Race-Based Intelligence Andy Worthington The Guantánamo Suicides Michael Birmingham What Happened in Nahr Al Bared? Corporate Crime Reporter The Nuclear Democrats Tariq Ali Bush's Cuba Detour Farzana Versey Imagining Serfdom in a Scarf Dave Zirin White Noise James Murren What "Support Our Troops" Means Todd Chretien Looking Reality in the Face Martha Rosenberg What Came First, the Chicken or the Cage? Website of the Day Hillary Clinton on Nuclear Power   October 23, 2007 Ralph Nader Bush's Catastrophic Rhetoric Lawrence R. Velvel Goldsmith Stands Convicted--By His Own Mouth: How a Harvard Law Professor Justified Rendition at the Bush Justice Dept. Vijay Prashad The Nuke Deal is Dead Bonnie Bricker / Adil E. Shamoo The True Cost of War for Oil Dave Lindorff Christopher Dodd's Make or Break Moment Mike Whitney The Big Squeeze Farzana Versey Race with the Devil Stanley Heller / Ben George Something New from the Antiwar Movement Marcelle Cendrars You Too Can Confront the Holy Executive Regan Boychuk Burma and Haiti: Comparing the Media Response Website of the Day King Corn   October 22, 2007 Ishmael Reed Should Blacks Go Green? Marjorie Cohn Mukasey and the Constitution: Another Loyal Bushie Rannie Amiri Is There a Method to Bush's Middle East Madness? Diane Farsetta Time to Pay for Payola: the FCC and Pundit-for-Hire Armstrong Williams Todd Alan Price Renewing No Child Left Behind: A Hurricane Katrina Aimed at Public Education Robert Jensen The Quagmire of Masculinity Stephen Lendman The UAW Leadership Sells Out Its Workers Jemima Khan The Kleptocrat in an Hermes Headscarf Sunsara Taylor David Horowitz Can't Handle the Truth Binoy Kampmark No Ideas, Please: the Australian Elections Website of the Day Support the Center for International Policy     October 20 / 21, 2007 Alexander Cockburn The Man Who Builds Hillaryworld Tariq Ali A Massacre Foretold Jeffrey St. Clair Greetings from Echo Park Andy Worthington The Shame of Diego Garcia Mike Whitney Housing Flameout Daniel Wolff Play It As It Lays David Rosen Deviants on Parade: Folsom St. Fair and America's 4th Sexual Revolution Saul Landau David and Goliath in Iraq Ron Jacobs COINTELPRO and the Panthers Robert Fantina The Strange Love of Mitt Romney and Bob Jones David Heleniak Erring on the Side of Hidden Harm Joe Allen Hoffa Brown-Nosing at UPS Prairie Miller Lions for Lambs Poets' Basement Gibbons, Holt and Buknatski Website of the Weekend Crash!   October 19, 2007 John Ross Che's Mexican Legacy Sheldon Rampton Shared Values Revisited: a Case Study in the Limits of Propaganda Rahul Mahajan A Tale of Two Atrocities: Blackwater and Haditha Devra Davis Deadly Secrets: Chemical Pollution and Cancer Christopher Brauchli Blasphemous Science Wadner Pierre Haiti After the Deluge Bill Quigley Jailed for Justice Website of the Day Textbook Sticker Shock   October 18, 2007 Saree Makdisi Academic Freedom is at Risk Meg Dwyer What I Learned from 9/11: Who Wouldn't Want Us Dead? Alevtina Rea Sketches of Russian Life Norman Solomon The United States of Violence Kristoffer Larsson Something is Rotten in Sweden Harvey Wasserman Nukes are Back and So are We Website of the Day Eve Ensler: "A Filibuster Would Stop This War"   October 17, 2007 Steve Niva Counter-Insurgency, American-Style Andy Worthington The Case of Mohamed Jawad Alan Farago The Credit Shock Russell Mokhiber The New Billionaire-Criminal Class Sharon Smith Democrats, AWOL When It Mattered Mike Whitney Time for the Banks to Face the Hangman Robert Fantina Iraq, Iran and the US: Business as Usual Chris Irwin Where Have All the Rednecks Gone? Website of the Day Sex Ed at Oral Roberts University October 16, 2007 Peter Linebaugh Doris Lessing and the Dynamite Prize Paul Findley Follow the Leader: The Open Secret About the Israel Lobby Robert Bryce Inconvenient Corrections: Al Gore's Wacky Facts Uri Avnery The Mother of All Pretexts Paul Craig Roberts The Iraqi Genocide Ray McGovern What Did Nancy Pelosi Know About NSA Spying and When Did She Know It? Norman Solomon The Pro-War Undertow of the Blackwater Scandal Martha Rosenberg The Curse of Cymbalta William S. Lind Out of the Frying Pan Joel S. Hirschborn Time to Boycott Voting Website of the Day Pipeline Through Paradise: Big Oil's Arctic Play         Subscribe Online

November 27, 2007 Even Larry Summers Predicts Doom A Dollar the Size of a Postage Stamp By MIKE WHITNEY Lately it seems as though everyone wants to take a poke at the dollar. Last week, it was the Brazilian supermodel who demanded euros for her jaunts on the catwalk instead of USD. The week before that, hip-hop impresario, Jay-Z, released a video dissin' the dollar and praising the euro as the 'baddest Dude in the 'hood'. Lambasting the greenback has become trendy. It's a favorite pastime of politicians, too. At the November OPEC meeting in Riyadh, Iran's president Mahmoud Ahmadinejad asked the assembled finance ministers to "study the feasibility of selling oil in another currency." Ahmadinejad disparaged the dollar as "a worthless piece of paper". The fiery Venezuelan President, Hugo Chavez, followed Ahmadinejad's lead predicting that the demise of the dollar would mean the "end of the Empire." Hugo may be on to something. The dollar is America's Achilles heel; if the dollar tanks, so does the empire. That means the taxpayer will have to foot the bill for Bush's bloody-interventions in Iraq and Afghanistan, rather than the Chinese. That also means that the US will have to export something of greater value than Daisy Cutters and gulags. That could be a tall-order, now that Bush has boarded up the factories, hollowed out the industrial base, and outsourced 3 million manufacturing jobs. We'll have to scrape the rust off the machinery and get back into the widget-making business like we were before the Free Trade fiasco. Central banks across the globe are trying to figure out how to ditch their dollar reserves without triggering a stampede for the exits. No one wants to see that. But, then, nobody wants to be stuck with vaults full of Uncle Sam's green confetti either. So, the question arises; What is the best way to divest oneself of $5.6 trillion (total USD held overseas) before the Lusitania capsizes? Kuwait, Venezuela, Iran, Russia, and Norway have already opted to ignore the destabilizing effects of "conversion" from dollars and are in some stage of divestiture. Others will follow. The UAE, Bahrain, Qatar, Oman and Saudi Arabia are considering switching from the dollar-peg to a basket of currencies so they can hedge against the inflation that's battering their economies. It's only a matter of time before the Petrodollar System---which links the dollar to petroleum sales and creates a de facto "international currency"---unravels completely, precipitating the final collapse of Breton Woods. Talk of America's impending currency disaster is no longer relegated to the Internet blathershere. Mainstream journalists have joined the chorus and are sending up their own red flags. The UK Telegraph's economics's editor, Liam Halligan, made this grim observation in his recent article, "Bet Your Bottom Dollar Tensions Will Follow": "The importance of "dollar divestment" cannot be overstated. At the very least it means the greenback has much further to fall - plunging the US into recession. But it begs a bigger, more alarming, question. How will Washington react to the end of the US hegemony?" The dollar was savaged by the monetary policies of the Federal Reserve. The Fed's policies were designed to coincide with Bush's Middle East Crusade. They were supposed to work like two wheels on the same axle. The administration believed that, by 2007, the military would need only 30,000 or so troops to maintain security in Iraq. That would give Bush's legions the chance to turn east and push on to the next target-state, Iran. If things went according to plan -- and no one thought the high-tech US war machine could be stopped -- the US would control two-thirds of the world's oil. This would allow America to keep writing bad checks on green paper for the next century. But then, of course, the plan hit a snag. The Iraqi resistance mushroomed, the US got bogged down in an "unwinnable" war, and the once-mighty dollar shriveled into nothingness. Now we're at a turning point and our leaders are in a state of denial. Bush is still playing Teddy Roosevelt, while Paulson and Bernanke are just plain shell-shocked. They probably know the game is over. As the dollar continues to wither; the frustration is beginning to mount in Europe. Liam Halligan sums it up like this: "Europe has finally had enough of America's "benign neglect" dollar policy. As a large economic area, with a floating exchange rate, the eurozone suffers most. Over the past seven years, the single currency has risen by a shocking 82 per cent against the greenback. That's hammered eurozone exports - provoking serious trade disputes between the EU and US, the world's two biggest trading blocks. No wonder French President Nicolas Sarkozy describes America's drooping dollar as "a precursor to economic war". (UK Telegraph, "Bet Your Bottom Dollar tensions Will Follow") Sarkozy is leading the charge for "intervention"; the buzzword for shoring the greenback through exchange controls and buying up billions of dollars. But it's a risky business; especially when net capital inflows -- which are the monthly purchases of US-backed securities and Treasuries --have gone negative for the last two months. That means the US isn't attracting enough foreign investment to finance its trade deficit. So the dollar will have to fall to compensate. So, how much loot is Sarkozy willing to put up to keep the dollar from slumping further -- $100 billion, $500 billion, $1,000 billion? And where's the bottom? The fact is, the greenback took a "header" down the stairwell and by the time it picks itself up, it could be eye to eye with the peso. Who knows? Maybe its time we all learned Spanish? More than two-thirds of all sovereign foreign exchange holdings are denominated in dollars. When those dollars are converted into back into foreign currencies and start recycling into the US; we're in deep trouble. Inflation will soar. Surely, the Fed must have known this day would come when they were pumping trillions of dollars into subprime mortgages and complex debt-instruments which served no earthly purpose except to fatten the bottom line for rapacious bankers and hedge-fund managers. The Fed also knew that the nation's wealth was not being "efficiently deployed" for capital improvements on factories, technology or industry. Oh, no. That would have ensured that America would remain competitive in the global marketplace into the new century. Instead, the money was shoveled into the bottomless sinkhole of stucco homes with composition roofing and toxic credit default swaps. The stock market lost another 237 points yesterday; the third 200-plus slide in a week. Now all three indexes are down more than 10% since their record high on Oct 9. Treasury yields are plunging as investors flee the stock market looking for safety. That means the Fed will have to slash rates again at its December 11 meeting to provide more low interest crack for the investor class. Traders see an 82% chance that Bernanke will cut the Fed Fund's rate by another quarter point to 4.25%. All that is likely to do is put the dollar into free fall and send food, oil and gold prices to the moon. It won't pay off the overdue mortgage payments and it won't remove the billions of dollars of debt from the banks' balance sheets. It's pointless. The US is headed for a "hard landing" and its dragging the rest of the world along with it. Harvard Economics professor, Lawrence Summers offered this sobering warning yesterday in an article in the Financial Times, "Wake up to the dangers of a deepening crisis": "Three months ago it was reasonable to expect that the subprime credit crisis would be a financially significant event but not one that would threaten the overall pattern of economic growth. This is still a possible outcome but no longer the preponderant probability. Even if necessary changes in policy are implemented, the odds now favor a US recession that slows growth significantly on a global basis. Without stronger policy responses than have been observed to date, moreover, there is the risk that the adverse impacts will be felt for the rest of this decade and beyond. Several streams of data indicate how much more serious the situation is than was clear a few months ago." Summers is not the smartest guy on the block. If he was he wouldn't have said men are smarter than women and he'd still be president of Harvard. But he's a capable economist and he can sniff disaster as it comes stampeding round the corner. Mike Whitney lives in Washington state. He can be reached at: fergiewhitney@msn.com Your Ad Here

Now Available! How the Press Led the US into War Buy End Times Now! New From CounterPunch Books The Secret Language of the Crossroads: HOW THE IRISH INVENTED SLANG By Daniel Cassidy WINNER OF THE AMERICAN BOOK AWARD! Click Here to Buy! Cassidy on Tour Click Here for Dates & Venues "The Case Against Israel" Michael Neumann's Devastating Rebuttal of Alan Dershowitz Click Here to Buy! Saul Landau's Bush and Botox World with a Foreword by Gore Vidal Click Here to Order!   Grand Theft Pentagon How They Made a Killing on the War on Terrorism         The Occupation by Patrick Cockburn Humanitarian Imperialism By Jean Bricmont   CITY BEAUTIFUL By Tennessee Reed     Bruce Springsteen On Tour By Dave Marsh   The Book on 9/11 the White House Denounced as "ABSOLUTE GARBAGE"