Notes on “Imperial Brain Trust” (Shoup & Minter)

The following is a list of excerpts from the book Imperial Brain Trust: The Council on Foreign Relations and United States Foreign Policy (Shoup & Minter, Monthly Review Press, 1977):

pp. 4-5:

[…] in 1919 the United States was not yet adequately prepared for world leadership, as was well illustrated by the confusion surrounding the issue of United States membership in the League of Nations. Even the leaders of opinion had been unable to arrive at a common understanding of the part the United States should take in world affairs. The Council on Foreign Relations would help remedy this defect. By keeping “its members in touch with the international situation” and devoting itself to a continuous study of the “international aspects of America’s political, economic and financial problems,” it would develop a “reasoned American foreign policy.” As one early statement of aims ambitiously noted, the Council on Foreign Relations “plans to cooperate with the Government and all existing international agencies, and to bring all of them into constructive accord.” The Council on Foreign Relations still exists today, more than half a century later. Yet it is hardly a household word. Even many of those Americans who are relatively well informed about foreign policy recognize it, if at all, only as the organization which publishes Foreign Affairs magazine. The Council is rarely mentioned in the press or on television. The number of articles, scholarly or otherwise, devoted to its activities is minuscule, even if one adds together the output of over fifty years. The lack of public attention might suggest that the Council’s importance does not match its original ambitious goals. One might conclude that it had become simply another discussion group, or a specialized research organization, of little interest except to its own members, and not particularly important to the overall picture of United States foreign policy formation. But such a conclusion would be profoundly mistaken. […] just the names of members give an impressive picture of Council importance. The current Council chairman is David Rockefeller of Chase Manhattan Bank, a man with incredible personal wealth and financial power. Wall Street lawyer Allen W. Dulles, a Council director for over forty years, helped establish the CIA and directed it while his brother John Foster (also a Council member) ran the Department of State. Diplomatic superstar Henry A. Kissinger was a Council protege who began his career in foreign affairs as a rapporteur for a Council study group. Kissinger later told Council leader Hamilton Fish Armstrong, who had played a key role in Kissinger’s rise to power, “You invented me.” The list could easily be prolonged with eminent financiers, Wall Street lawyers, Ivy League scholars, and high government officials — in short, a galaxy of “establishment” figures. It is such intriguing indications of the Council’s significance that led us to a more detailed investigation of this little-known organization. Our results show that the Council on Foreign Relations, despite its relative public obscurity, plays a key part in molding United States foreign policy. In the Council, the leading sectors of big business get together with the corporate world’s academic experts to work out a general framework for foreign policy.

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p. 6:

That the Council is little known is thus not a sign of insignificance, but rather points to its mode of operation. The men at the top meet and work out together the general direction of policy — the limits of respectable debate. Through a complex network of channels, the content and tone of their discussion reach the policymakers and the leaders of opinion. Eventually they may reach those of us who take an interest in what our country is doing in the world, but we may have little idea that what comes to be a natural “climate of opinion” was carefully fostered and guided. For the process is not public. Council members are selected by the Council’s leadership and the meetings are confidential. As the New York Times expressed it, “Except for its annual public Elihu Root Lectures, the Council’s talks and seminars are strictly off the record. An indiscretion can be grounds for termination or suspension of membership.”

Despite this conscious secrecy, it is possible to find out something about what the Council is and does. Putting together bits and pieces from many sources and searching out references to Council activities in government archives, we have put together a picture of the inner workings and significance of the Council. Our conclusions challenge the conventional interpretations of policy formation as dispersed among a wide variety of groups or elites. In contrast to this view, we will show, in the pages to follow, the leading role played by the Council on Foreign Relations and the sector of society it represents, the corporate upper class.

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pp. 12-13:

[…] on May 30, 1919, at the Majestic Hotel in Paris, a group of Americans and British agreed to form an Anglo- American organization. It was officially named the Institute of International Affairs and was to have branches in the United Kingdom and the United States.

While the idea for such an organization seems to have been “in the air” in Paris, the conception of the scheme was primarily that of British historian Lionel Curtis, formerly a colonial official in South Africa. For the previous nine years Curtis had been in charge of setting up a network of semi-secret organizations in the British Dominions and the United States. These bodies, called the Round Table Groups, were established by Lord Milner, a former British secretary of state for war, and his associates in 1908-1911. “The original purpose of the groups was to seek to federate the English-speaking world along lines laid down by Cecil Rhodes and William T. Stead, and the money for the organizational work came originally from the Rhodes Trust.”

Rhodes was an extremely wealthy imperialist whose will to power is illustrated by a statement he once made to a friend: “The world is nearly all parcelled out, and what there is left of it is being divided up, conquered, and colonized. To think of these stars that you see overhead at night, these vast worlds which we can never reach. I would annex the planets if I could; I often think of that.” Rhodes declared that his life ambition was “the furtherance of the British Empire, the bringing of the whole uncivilized world under its rule the recovery of the United States of America, the making of the Anglo-Saxon race into one Empire.” To achieve this grandiose end in 1891 Rhodes proposed the founding of a worldwide organization for the preservation and extension of the British Empire. The original purpose of the Round Table was thus to establish an “organic union” for the entire British Empire with one imperial government, and to try to associate other nations with the empire. Curtis and Philip Kerr (later Lord Lothian) were the two full-time activists in this scheme, which was backed by money from Milner, who had access to large funds as a Rhodes trustee.

The Round Table Groups kept in touch by visits and correspondence, and published, beginning in 1910, the magazine The Round Table, with anonymous contributors and even an anonymous editorial board. During the First World War, Round Table leaders were important in the formulation of British war aims, and many came to Paris as part of the British delegation.

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p. 15

Honorary chairman of the Council was Elihu Root, Wall Street lawyer and former secretary of state and secretary of war. The chairman was another New York lawyer, Lindsay Russell, and the chairman of the Finance Committee was Alexander Hemphill, chairman of the Guaranty Trust bank. The organization was composed almost entirely of “high-ranking officers of banking, manufacturing, trading and finance companies, together with many lawyers . . . concerned primarily with the effect that the war and the treaty of peace might have on post-war business.”

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p.  16:

The background of its officers also gives some clue as to the early direction of the Council. Elihu Root, the honorary president, was the prototype of the Wall Street lawyer and the elder statesman of the period. As one of his proteges and later secretary of state and secretary of war, Henry L. Stimson, observed: “He was the unchallenged leader of our bar, both in the state and in the nation.” Root was an early leader in America’s imperial expansion, being responsible fo organizing the administration of the overseas territories won by the United States in the Spanish-American War. He acted as counsel for several leading American corporations and banks of the time. In addition he advised Andrew Carnegie on his philanthropies, and served as first president of th Carnegie Endowment for International Peace.

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John Trudell, Thanksgiving address (1980): “They deal in violence and repression, we are power”

“I’d like to thank all of you for coming here tonight and sharing this evening with us. And tonight I’d like to talk in honor of the water and the earth and our brother Leonard Peltier.

We’re faced with a very serious situation in this generation. There are insane people who wish to rule the world. They wish to continue to rule the world on violence and repression, and we are all the victims of that violence and repression. We as the indigenous people of the western hemisphere have been resisting this oppression for 500 years. We know that the black people have been resisting it for at least that long. And we know that the white people have had to endure it thousands of years. And now it’s come full swing to this generation that we live in: the nuclearization of the world.

You see, this cannot be. We cannot allow this to go on. We cannot do it. We cannot expect that the pro-nuclear oppressor, that other side, we cannot expect that they’re going to change for us. They are going to become more brutal. They are going to become more repressive because it’s a matter of dollars and their illusionary concepts of power.

We have to re-establish our identity. We have to understand who we are and where we fit in the natural order of the world, because our oppressor deals in illusions. They tell us that it is power, but it is not power. They may have all the guns, and they may have all the racist laws and judges, and they may control all the money, but that is not power. These are only imitations of power, and they are only power because in our minds we allow it to be power. But it’s all an imitation. Racism and violence, racism and guns, economics- the brutality of the American Corporate State way of life is nothing more than violence and oppression and it doesn’t have anything to do with power. It is brutality. It’s a lack of a sane balance. The people who have created this system, and who perpetuate this system, they are out of balance. They have made us out of balance. They have come into our minds and they have come into our hearts and they’ve programmed us. Because we live in this society, and it has put us out of balance. And because we are out of balance we no longer have the power to deal with them. They have conquered us as a natural power.

See, we are power. They deal in violence and repression, we are power. We are a part of the natural world. All of the things in the natural world are a natural part of the creation and feed off the energy of our sacred mother, Earth. We are power. But they have separated us from our spiritual connection to the Earth, so people feel powerless. We look at the oppressor and we look at the enemy because they have the most guns and the most lies and the most money. People start to feel powerless.

We are power, we are a natural part of the creation, we were put here on the sacred mother Earth to serve a purpose. And somewhere in the history of people we’re forgetting what the purpose is. The purpose is to honor the earth, the purpose is to protect the earth, the purpose is to live in balance with the earth, the earth is our mother. And we will never free ourselves as human people, we will never free ourselves as sexual people, we will never free ourselves until we address the issue of how we live in balance with the earth. Because all our resistance and all of our struggle is hollow, it’s false, it’s another one of the oppressor’s hypocrisies. If we do not look out for the welfare of the Earth first, because I don’t care who it is, any child who turns on their mother is living in a terrible, terrible confusion. The Earth is our mother, we must take care of the Earth.

They pollute- this oppressor, this machine that has gone mad and run amok, it is beserk. They keep telling us, “progress.” They keep telling us “face reality.” Well, let’s deal with reality. Reality is the Earth can no longer take this attack. We can no longer allow this Thing to continue when it’s polluting the air, it’s polluting the water, polluting our food. They pollute the air, they pollute the water, they pollute our food, they pollute our minds. They put us out of balance.

They have made us be insecure with ourselves. They have put us into a situation where we have to play many roles. You know, we gotta be chauvinist, or we’ve got to be on some kind of a class trip, or some kind of illusionary power trip. We’ve gotta play a role, see? We’ve gotta play a role to communicate with other people. We’ve got to go through this charade because they have attacked our self confidence. They have attacked our self confidence and they have made us to listen to *them.* They have made us to believe that they are power. But they are not- they are violent and they are brutal, but they are not power.

We are a natural part of the earth. As a natural part of the Earth, we have the energy and the power that IS the Earth. The Earth will take care of us if we will remember the Earth- in more than just our words. If we will remember the Earth in our way of life; we are all here to play a role. And all of the animals, and all of the life on the earth is playing it’s proper role except the human people. Somehow we are betraying, we are betraying our purpose here and that is why we live in the confusion that we live in. They tell us, they want us to believe, that we are powerless.

We are a natural part of the earth, we are an extension of that natural energy. The natural energy which is Spirit, and which is power. Power. A blizzard is power. An earthquake is power. A tornado is power. These are all things of power that no oppressor, no machine age, can put these things of power in a prison. No machine age can make these things of power submit to the machine age. That is natural power. And just as it takes millions and billions of elements to make a blizzard to happen, or to make the earthquake, to make the earth to move, then it’s going to take millions and billions of us. We are power. We have that power. We have the potential for that power.

I remember in the 60s and 70s I heard all these things about “power to the people” and I never really understood because everyone was saying “power to the people” when they were talking about demonstrating, they were talking about votes, they were talking about dealing on the terms of the oppressor. Our power will come back to us, our sense of balance will come back to us, when we go back to the natural way of protecting and honoring the earth. If we have forgotten how to do it, or we think that it looks overwhelming, or think that we can never accomplish it, all we have to do, each one of us, an individual, is to go and find one spot on the Earth that we can relate to. Feel that energy, feel that power. That’s where our safety will come.

The Earth will take care of us. We have to understand that the American Corporate State will not take care of us. They do not care about us. Maximize their profit, that is where their whole life’s balance is placed upon- maximizing the profit. They will turn us against each other to maximize the profit, because they have done it in the past.

Nuclear energy. It’s the final assault. Nuclear energy should tell each and every one of us that they have gone beyond the reasons of sanity. That they are no longer sane. That they no longer deal with the real, natural world. Because they want to create a radioactivity that is going to make it impossible for the mother earth to take care of our life. We will not destroy the world. We are arrogant and we are stupid and we are foolish if we believe that we will destroy the world. Man has the ability to destroy all of the people’s ability to live on the Earth, but we do not have the power to destroy the earth. The earth will heal itself. The earth will purify itself of us. If it takes a billion years to get rid of the radiation the Earth will do it, because the Earth has that kind of time. We do not.

Our obligations and our loyalty have to be to the earth, and they have to be to our sense of community and to our people and our relations. Our obligations and loyalty should not be to a government that will not take care of our needs. Our obligations and loyalty should not be to a government that has proven time and time again that it is the enemy of the people unless the people are rich in dollars. That has been the consistent history of Western civilization and the American Corporate State Government- that’s reality. They are not our friends, they do not care about us. We have to face the reality that we have an enemy.

We all want to talk about nuclear war, everyone’s afraid of nuclear war, and it’s going to come between the Americans and the Russians or the Chinese or whoever. But are they not waging nuclear war on us now when the miners die from cancer from mining that Uranium? Are they not waging nuclear war with Three Mile Island? When they release that stuff into the air? Are they not waging nuclear war when they build these nuclear reactors and it’s not safe? Are they not waging nuclear war when they attack the Indian people on their land, militarily attack the Indian people, racistly attack the Indian people, so they can get at the natural resources to feed their radioactive machines? That is war, and they are waging it against us. They bribe congress, they bribe your elected officials, they terrorize and intimidate your elected officials by getting the FBI to blackmail them. Those are acts of war. We have to come to a time in our lifetime, and it will come in our lifetime, where we are going to have to deal with the fact that the enemy has taken over your government. The government is not your ally. The government will use you, chew you up and spit you out.

You think that we are wrong? You think that we are talking unrealistically? Then go look at your elders and see what has happened to your elders in your machine age society. See what kind of respect that they get. See what kind of a voice they are allowed into your society, what kind of input they have. See what their final reward of happiness is after working for this slave state for 30 or 40 years and allowing someone to exploit their labors.

What is racism? Racism is an act of war. What is sexism? Sexism is an act of war. It’s a war against our human dignity and our rights to self respect. This is the war that they wage there. War! They are war-like. And we have to understand that the American Corporate State got to where it’s at through the act of war. The next war… you wanna worry, you wanna think about a war? The next war that you better be concerned about is the one that they’re gonna fight here. Here in the continental United States. They have fought many wars here. They fought us all along, see, because we said ‘it’s ours and you haven’t got a right to it.’ They fought us. Now you all are claiming that it’s yours under this illusionary concept of private ownership of property and they’re gonna fight you. But they’re going to call it “national security” and “national energy crisis.” They’re going to call it “constitutional rights” and they’re gonna call it “judicial proceedings.” They’re going to nationalize… you know, your military coupe is going to come there. They’re going to nationalize the police departments, there’s your military coupe. In the name of “violence.” “Rising crime.” But all we must do is look in the corporate office and see the rising crime that is taking place there and nobody’s going to jail for it. So we’ve got to understand that they are arming themselves to wage a war against us and it’s going to be called the war of “law and order.” Because they’re twisting it around.

For 500 years my people have resisted. For 500 years we will resist again if it becomes necessary. We want to be able to relate and communicate with all of the people who are living on this land, but we want to be able to relate and communicate from a position of truth. You all gotta face the truth. We have had to face it through 500 years of genocide, we have had to face the truth, we have had to live the truth. We have had to die the truth. Before we’re gonna ever see our evolutionary liberation, the people that call themselves Americans are gonna have to face the truth also.

They tell us to “be realistic,” that “progress” means that all these things have to happen. They tell us that we can’t go back to the old way. They tell us “be realistic.” But there is no old way, no new way, there is a way of life. We must live in balance with the earth. We MUST do it. We have no choice. If we allow ourselves to be apathetic, or we allow ourselves to be lied to, or tolerate their lies about what they’re doing to the earth, then we are betraying our intention. We are betraying our purpose here. We cannot protect that 7th generation if we do not protect the earth. We cannot protect ourselves if we do not protect the earth. The Earth gives us life, not the American government. The earth gives us life, not the multi-national corporate government. The Earth gives us life, we need to have the Earth. We must have it, otherwise our life will be no more. So we must resist what they do.

They want to break our spirit. They will do everything and anything to break our spirit, our will to live. We must learn to resist, we much learn to see, we must learn to look. We must learn to step out of this reactionary-ism. All of our lives they’ve had control of us through their schools, their tv, their electronic media.  They’ve had control of us all of our lives. They have programmed us, they have made us become reactionary. We don’t think, we react to what they do. We don’t think, we react. To everything that they do- we react to it. They’re setting us up in the 80’s because they know consistently throughout the past the people have always reacted to their manipulations of circumstance. They know that the people always react. They’re counting on it in the 80’s.

See, and they outnumber us with guns, They outnumber us with money. They outnumber us with votes. They control all the machines that count the votes. They’ve got it all stacked in their favor. Except there’s a key. The key is we must start thinking, and stop reacting. The oppressor has no thinkers, they have no philosophers, it’s all scientific, it’s all economic, it’s all manipulative. They have no thinkers. You go look and you deal with the enemy and what the enemy does is: the enemy will send somebody out on the street to hit you in the head and the guy says “I’m only taking my orders.” And if you can come from a position of strength to this guy whose hitting you in the head and say “Hey, you’ve got to stop hitting me in the head, we want to talk.” then he says “Well I have to go to my superior to see.” They have no thinkers, either.

If we will start to think we will learn to see, to see what reality really is, and we will outnumber them through the thinking process. We will take our minds away from them. Because through their manipulation of our minds they control our spirit, and they know this is true. They tell us, see, they want us to believe that we are powerless. They want us to believe that we are becoming overwhelmed, that they can overwhelm us. You see, but they are paranoid. They are more paranoid than any of us are, no matter what happens to us. You see, because they have to put people in here to come and listen to what we’re saying, so they can go back and tell.

See, so they’re afraid! They’re afraid because they know we’re talking about reality! Now why are they afraid? They are afraid because they know they are dealing with the illusions of power which are based on the realities of violence and brutality. They’re afraid! See, they don’t want people to think, they don’t want people to be talking, and they don’t want people to think about what they talk about.

Because they know. They’ve known it all along, that they built their whole Thing on illusions. And because they have drawn us in to giving this illusionary world all this power, they have taken our power away from us. Because we believe in the illusions.”

HSBC, too big to jail, is the new poster child for US two-tiered justice system

Glenn Greenwald in “HSBC, too big to jail, is the new poster child for US two-tiered justice system” (Guardian, 12 December 2012):

“We are constantly told that immunizing those with the greatest power is not for their good, but for our good, for our collective good: because it’s better for all of us if society is free of the disruptions that come from trying to punish the most powerful, if we’re free of the deprivations that we would collectively experience if we lose their extraordinary value and contributions by prosecuting them. […]

A new episode unveiled on Tuesday is one of the most vivid examples yet of this mentality. Over the last year, federal investigators found that one of the world’s largest banks, HSBC, spent years committing serious crimes, involving money laundering for terrorists; “facilitat[ing] money laundering by Mexican drug cartels”; and “mov[ing] tainted money for Saudi banks tied to terrorist groups”. Those investigations uncovered substantial evidence “that senior bank officials were complicit in the illegal activity.” As but one example, “an HSBC executive at one point argued that the bank should continue working with the Saudi Al Rajhi bank, which has supported Al Qaeda.”

Needless to say, these are the kinds of crimes for which ordinary and powerless people are prosecuted and imprisoned with the greatest aggression possible. If you’re Muslim and your conduct gets anywhere near helping a terrorist group, even by accident, you’re going to prison for a long, long time. In fact, powerless, obscure, low-level employees are routinely sentenced to long prison terms for engaging in relatively petty money laundering schemes, unrelated to terrorism, and on a scale that is a tiny fraction of what HSBC and its senior officials are alleged to have done.

But not HSBC. On Tuesday, not only did the US Justice Department announce that HSBC would not be criminally prosecuted, but outright claimed that the reason is that they are too important, too instrumental to subject them to such disruptions. In other words, shielding them from the system of criminal sanction to which the rest of us are subject is not for their good, but for our common good.

[…]

Read full article at: http://www.guardian.co.uk/commentisfree/2012/dec/12/hsbc-prosecution-fine-money-laundering

Whose Constitution?

It is widely known that the U.S. political system today is dominated by a relatively small group of extremely wealthy individuals, who further their own interests at the expense of the vast majority of the population. But I believe it is a mistake to say that this situation has arisen because the original system has been “corrupted”, and that we just need to go back to the “good old days” when the founding fathers were in charge of the country and the Constitution was the law of the land …

The Constitution was designed by rich and powerful men to serve their own minority interests

Slavers, bankers, and other rich scum at the Constitutional convention
The Constitutional Convention of 1787, where a bunch of the wealthiest and most powerful men in the Americas met together in secret and planned out a form of government that would perpetually maintain oligarchical rule in the United States.

Who were the Founding Fathers, and what did they intend to create at the Constitutional Convention? The story we’re told in our high-school history books is that this group, composed of the wealthiest and most influential men in post-Revolutionary America, had temporarily set aside their own economic interests (including their ownership of slaves and war debt) and together designed a brilliant democratic political system that guaranteed “liberty and justice for all”. This system is enshrined in the most holy of US political documents, the United States Constitution.

Of course, today, if I were to suggest that a bunch of billionaires should be allowed to call a secret meeting and design a system of government, without consulting the public, and that they could be trusted to set aside their own interests while doing so, I would be considered naive at best. Yet for some reason, people happily accept that this is what happened at the Constitutional Convention.

In reality these slave-owning aristocrats were facing a nationwide upsurge of democratic “leveling” sentiment that aimed to redistribute wealth and political power, and felt that the Articles of Confederation weren’t doing an adequate job at combating this tendency. Thus they came together to design a system that they felt would better protect their position of privilege. If you doubt that this was their intention, take a look at what the Founding Fathers themselves were saying:

Alexander Hamilton:

“All communities divide themselves into the few and the many. The first are the rich and well born, the other the mass of the people. The voice of the people has been said to be the voice of God; and however generally this maxim has been quoted and believed, it is not true in fact. The people are turbulent and changing; they seldom judge or determine right. Give therefore to the first class a distinct, permanent share in the government. They will check the unsteadiness of the second, and as they cannot receive any advantage by a change, they therefore will ever maintain good government. Can a democratic assembly, who annually revolve in the mass of the people, be supposed steadily to pursue the public good? Nothing but a permanent body can check the imprudence of democracy. Their turbulent and uncontroling disposition requires checks.”

James Madison:

“The man who is possessed of wealth, who lolls on his sofa or rolls in his carriage, cannot judge the wants or feelings of the day-laborer. … In England, at this day, if elections were open to all classes of people, the property of landed proprietors would be insecure. An agrarian law would soon take place. If these observations be just, our government ought to secure the permanent interests of the country against innovation. Landholders ought to have a share in the government, to support these invaluable interests, and to balance and check the other. They ought to be so constituted as to protect the minority of the opulent against the majority.”

” It ought finally to occur to a people deliberating on a Government for themselves, that as different interests necessarily result from the liberty meant to be secured, the major interest might under sudden impulses be tempted to commit injustice on the minority. In all civilized Countries the people fall into different classes having a real or supposed difference of interests. There will be creditors & debtors, farmers, merchants & manufacturers. There will be particularly the distinction of rich & poor. … In framing a system which we wish to last for ages, we should not lose sight of the changes which ages will produce. An increase of population will of necessity increase the proportion of those who will labour under all the hardships of life, & secretly sigh for a more equal distribution of its blessings. These may in time outnumber those who are placed above the feelings of indigence. According to the equal laws of suffrage, the power will slide into the hands of the former. No agrarian attempts have yet been made in in this Country, but symtoms, of a leveling spirit, as we have understood, have sufficiently appeared in a certain quarters to give notice of the future danger. How is this danger to be guarded against on republican principles? How is the danger in all cases of interested coalitions to oppress the minority to be guarded against?”

Edmund Randolph:

“Our chief danger arises from the democratic parts of our constitutions. It is a maxim which I hold incontrovertible, that the powers of government exercised by the people swallows up the other branches. None of the constitutions have provided sufficient checks against the democracy.”

Or, most succinctly, John Jay:

“The people who own the country ought to govern it.”

This type of anti-democratic, oligarchic sentiment permeated the Convention. Unwilling to accept what the majority of the population wanted — democracy and economic equality — they decided instead to design a system of government which would enable the “minority of the opulent” to impose their wishes upon the people — exactly the type of system we live under today.

America’s Illegal Drug Complex: Another Capitalist Racket

via David Rosen (Counterpunch):

American capitalism consists of a constellation of rackets.  The Occupy Wall Street movement has focused a spotlight on the banking and financial-services racket.  Others have exposed the military-industrial complex, the extraction industries, the insurance, pharmaceutical and healthcare system, the agriculture and food combine and the communications trust.

Each racket is distinguished by the self-serving, intimate interrelation of private corporate interests and the public government, whether at the federal, state or local level.  Each racket consist of a host of distinct businesses elements, organized through both vertical and horizontal operations, no matter whether the business is conducted “legally” or not.  Each is charged with maximizing profit.

Rackets succeed by enabling private corporations to exploit the power and wealth of the public trough, the state.  Rackets do this in different ways, combining direct contracts, subsidies and tax breaks that further engorge the corporate bottom line.

One racket involves direct federal contracts to private companies, often with cost-plus agreements; in 2010, an estimated $180 billion went to the top 20 contractors.  This is the model of the military-industrial complex.

A second racket is characterized by the transfer or “externalization” of the social costs associated with a company’s product to consumers and taxpayers.  This is most evident in role of government subsidies and lax breaks associated with the (indirect) health-related costs that underwrite the extraction (e.g., air & water pollution) and food (e.g., obesity) industries.

A third type of racket involves the use of the legal system to maximize private gain and exemplified by the prison-industrial complex.  The criminalization of “illegal” drug taking as an unacceptable practice, like alcohol during Prohibition, has enabled many third parties, including government agencies, banks and private contractors, to profit from other people’s suffering.

Shedding moral pretenses, one needs to look at the illegal drug business in America as just another capitalist racket.   No better, no worse.  The street dope dealer is just another version of the day stock trader, the only difference is their legal status, although their social status, clothing and marketing message might be the same.

[…]

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Read the rest of the article at: http://www.counterpunch.org/2011/11/11/america%E2%80%99s-illegal-drug-complex/print