Liberal Politicians Launched the Idea of “Free Trade Agreements” In the 1960s to Strip Nations of Sovereignty and Hand Power Over to Global Corporations
It’s Not Only Conservative Politicians Backing Giant Multinational Corporations Over National Sovereignty
Preface: Liberals might assume that it is Republicans who are cheerleaders for global corporations at the expense of government. But, as shown below, liberal politicians have been just as bad … or worse.
Matt Stoller – who writes for Salon and has contributed to Politico, Alternet, Salon, The Nation and Reuters – knows his way around Washington.
Stoller – a prominent liberal – has scoured the Congressional Record to unearth hidden historical facts. For example, Stoller has previously shown that the U.S. government push for a “New World Order” is no wacky conspiracy theory, but extensively documented in the Congressional Record.
Now, Stoller uses the Congressional Record to show that “free trade” pacts were always aboutweakening nation-states to promote rule by multinationals:
Political officials (liberal ones, actually) engaged in an actual campaign to get rid of countries with their pesky parochial interests, and have the whole world managed by global corporations. Yup, this actually was explicit in the 1960s, as opposed to today’s passive aggressive arguments which amount to the same thing.
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Liberal internationalists, including people like Chase CEO David Rockefeller and former Undersecretary of State and an architect of 1960s American trade policies George Ball, began pressing for reductions in non-tariff barriers, which they perceived as the next set of trade impediments to pull down. But the idea behind getting rid of these barriers wasn’t about free trade, it was about reorganizing the world so that corporations could manage resources for “the benefit of mankind”. It was a weird utopian vision that you can hear today in the current United States Trade Representative Michael Froman’s speeches. I’ve spoken with Froman about this history, and Froman himself does not seem to know much about it. But he is captive of these ideas, nonetheless, as is much of the elite class. They do not know the original ideology behind what is now just bureaucratic true believer-ism, they just know that free trade is good and right and true.
But back to the 1967 hearing. In the opening statement, before a legion of impressive Senators and Congressmen, Ball attacks the very notion of sovereignty. He goes after the idea that “business decisions” could be “frustrated by a multiplicity of different restrictions by relatively small nation states that are based on parochial considerations,” and lauds the multinational corporation as the most perfect structure devised for the benefit of mankind. He also foreshadows our modern world by suggesting that commercial, monetary, and antitrust policies should just be and will inevitably be handled by supranational organizations. [Background.]
Here’s just some of that statement. It really is worth reading, I’ve bolded the surprising parts.
“For the widespread development of the multinational corporation is one of our major accomplishments in the years since the war, though its meaning and importance have not been generally understood. For the first time in history man has at his command an instrument that enables him to employ resource flexibility to meet the needs of peopels all over the world. Today a corporate management in Detroit or New York or London or Dusseldorf may decide that it can best serve the market of country Z by combining the resources of country X with labor and plan facilities in country Y – and it may alter that decision 6 months from now if changes occur in costs or price or transport. It is the ability to look out over the world and freely survey all possible sources of production… that is enabling man to employ the world’s finite stock of resources with a new degree of efficiency for the benefit of all mandkind.
But to fulfill its full potential the multinational corporation must be able to operate with little regard for national boundaries – or, in other words, for restrictions imposed by individual national governments.
To achieve such a free trading environment we must do far more than merely reduce or eliminate tariffs. We must move in the direction of common fiscal concepts, a common monetary policy, and common ideas of commercial responsibility. Already the economically advanced nations have made some progress in all of these areas through such agencies as the OECD and the committees it has sponsored, the Group of Ten, and the IMF, but we still have a long way to go. In my view, we could steer a faster and more direct course… by agreeing that what we seek at the end of the voyage is the full realization of the benefits of a world economy.
Implied in this, of course, is a considerable erosion of the rigid concepts of national sovereignty, but that erosion is taking place every day as national economies grow increasingly interdependent, and I think it desirable that this process be consciously continued. What I am recommending is nothing so unreal and idealistic as a world government, since I have spent too many years in the guerrilla warfare of practical diplomacy to be bemused by utopian visions. But it seems beyond question that modern business – sustained and reinforced by modern technology – has outgrown the constrictive limits of the antiquated political structures in which most of the world is organized, and that itself is a political fact which cannot be ignored. For the explosion of business beyond national borders will tend to create needs and pressures that can help alter political structures to fit the requirements of modern man far more adequately than the present crazy quilt of small national states. And meanwhile, commercial, monetary, and antitrust policies – and even the domiciliary supervision of earth-straddling corporations – will have to be increasingly entrusted to supranational institutions….
We will never be able to put the world’s resources to use with full efficiency so long as business decisions are frustrated by a multiplicity of different restrictions by relatively small nation states that are based on parochial considerations, reflect no common philosophy, and are keyed to no common goal.” ***
These [“free trade”] agreements are not and never have been about trade. You simply cannot disentangle colonialism, the American effort to create the European Union, and American trade efforts. After their opening statements, Ball and Rockefeller go on on to talk about how European states need to be wedged into a common monetary union with our trade efforts and that Latin America needs to be managed into prosperity by the US and Africa by Europe. Through such efforts, they thought that the US could put together a global economy over the next thirty years. Thirty years later was 1997, which was exactly when NAFTA was being implemented and China was nearing its entry into the WTO. Impeccable predictions, gents.
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I guess it turns out that the conspiracy theorists who believe in UN-controlled black helicopters aren’t as wrong as you might think about trade policy, and not just because United Technologies, which actually makes black helicopters, has endorsed the Trans-Pacific Partnership.
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These agreements are about getting rid of national sovereignty, and the people who first pressed for NAFTA were explicit about it. They really did want a global government for corporations.
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Ball in particular expressed his idea of a government by the corporations, for the corporations, in order to benefit all mankind. Keep that in mind when you think you’re being paranoid.
The full hearing can be downloaded here, though it is a big file.
The bottom line is not that liberals – or conservatives – are evil.
It’s that neither the Democratic or Republican parties reflect the true values of the American people (and see this).
Indeed, a scripted psuedo-war between the parties is often used by the powers-that-be as a way to divide and conquer the American people, so that we are too distracted to stand up to reclaim our power from the idiots in both parties who are only governing for their own profit … and a small handful of their buddies. See this, this, this, this, this, this, this, this, this and this.
Why Banks Are Doomed: Technology and Risk
It’s not just that banks are no longer needed–they pose a needless and potentially catastrophic risk to the nation. To understand why, we need to understand the key characteristics of risk.
The entire banking sector is based on two illusions:
1. Thanks to modern portfolio management, bank debt is now riskless.
2. Technology only enhances banks’ tools to skim profits; it does not undermine the fundamental role of banks.
The global financial meltdown of 2008-09 definitively proved riskless bank debt is an illusion. If you want to understand why risk cannot eliminated, please read Benoit Mandelbrot’s book The (Mis)Behavior of Markets.
Technology does not just enable high-frequency trading; it enables capital and borrowers to bypass banks entirely. I addressed this yesterday in Banks Are Obsolete: The Entire Parasitic Sector Can Be Eliminated.
Unfortunately for banks, higher education, buggy whip manufacturers, etc., monopoly and propaganda are no match for technology. Just because a system worked in the past in a specific set of technological constraints does not mean it continues to be a practical solution when those technological constraints dissolve.
Banks Are Obsolete: The Entire Parasitic Sector Can Be Eliminated
What else can we do with the $1.25 trillion we’ll save by eliminating these obsolete financial middleman parasites? A lot.
Technology has leapfrogged the banking sector, rendering it as obsolete as buggy whips. So why are we devoting 9% of our economy to an obsolete parasite?Financial sector profits now total a staggering 4.5% of GDP (gross domestic product), while the expenses generated by financial churning account for another 4.5% of the economy.
Operation Nazification
Annie Jacobsen’s new book is called Operation Paperclip: The Secret Intelligence Program That Brought Nazi Scientists to America. It isn’t terribly secret anymore, of course, and it was never very intelligent. Jacobsen has added some details, and the U.S. government is still hiding many more. But the basic facts have been available; they’re just left out of most U.S. history books, movies, and television programs.
After World War II, the U.S. military hired sixteen hundred former Nazi scientists and doctors, including some of Adolf Hitler’s closest collaborators, including men responsible for murder, slavery, and human experimentation, including men convicted of war crimes, men acquitted of war crimes, and men who never stood trial. Some of the Nazis tried at Nuremberg had already been working for the U.S. in either Germany or the U.S. prior to the trials. Some were protected from their past by the U.S. government for years, as they lived and worked in Boston Harbor, Long Island, Maryland, Ohio, Texas, Alabama, and elsewhere, or were flown by the U.S. government to Argentina to protect them from prosecution. Some trial transcripts were classified in their entirety to avoid exposing the pasts of important U.S. scientists. Some of the Nazis brought over were frauds who had passed themselves off as scientists, some of whom subsequently learned their fields while working for the U.S. military.
The U.S. occupiers of Germany after World War II declared that all military research in Germany was to cease, as part of the process of denazification. Yet that research went on and expanded in secret, under U.S. authority, both in Germany and in the United States, as part of a process that it’s possible to view as nazification. Not only scientists were hired. Former Nazi spies, most of them former S.S., were hired by the U.S. in post-war Germany to spy on — and torture — Soviets.
The U.S. military shifted in numerous ways when former Nazis were put into prominent positions. It was Nazi rocket scientists who proposed placing nuclear bombs on rockets and began developing the intercontinental ballistic missile. It was Nazi engineers who had designed Hitler’s bunker beneath Berlin, who now designed underground fortresses for the U.S. government in the Catoctin and Blue Ridge Mountains. Known Nazi liars were employed by the U.S. military to draft classified intelligence briefs falsely hyping the Soviet menace. Nazi scientists developed U.S. chemical and biological weapons programs, bringing over their knowledge of tabun and sarin, not to mention thalidomide — and their eagerness for human experimentation, which the U.S. military and the newly created CIA readily engaged in on a major scale. Every bizarre and gruesome notion of how a person might be assassinated or an army immobilized was of interest to their research. New weapons were developed, including VX and Agent Orange. A new drive to visit and weaponize outerspace was created, and former Nazis were put in charge of a new agency called NASA.
Permanent war thinking, limitless war thinking, and creative war thinking in which science and technology overshadowed death and suffering, all went mainstream. When a former Nazi spoke to a women’s luncheon at the Rochester Junior Chamber of Commerce in 1953, the event’s headline was “Buzz Bomb Mastermind to Address Jaycees Today.” That doesn’t sound terribly odd to us, but might have shocked anyone living in the United States anytime prior to World War II. Watch this Walt Disney television program featuring a former Nazi who worked slaves to death in a cave building rockets. Before long, President Dwight Eisenhower would be lamenting that “the total influence — economic, political, even spiritual — is felt in every city, every State house, every office of the Federal government.” Eisenhower was not referring to Nazism but to the power of the military-industrial complex. Yet, when asked whom he had in mind in remarking in the same speech that “public policy could itself become the captive of a scientific-technological elite,” Eisenhower named two scientists, one of them the former Nazi in the Disney video linked above.
The decision to inject 1,600 of Hitler’s scientific-technological elite into the U.S. military was driven by fears of the USSR, both reasonable and the result of fraudulent fear mongering. The decision evolved over time and was the product of many misguided minds. But the buck stopped with President Harry S Truman. Henry Wallace, Truman’s predecessor as vice-president who we like to imagine would have guided the world in a better direction than Truman did as president, actually pushed Truman to hire the Nazis as a jobs program. It would be good for American industry, said our progressive hero. Truman’s subordinates debated, but Truman decided. As bits of Operation Paperclip became known, the American Federation of Scientists, Albert Einstein, and others urged Truman to end it. Nuclear physicist Hans Bethe and his colleague Henri Sack asked Truman:
“Did the fact that the Germans might save the nation millions of dollars imply that permanent residence and citizenship could be bought? Could the United States count on [the German scientists] to work for peace when their indoctrinated hatred against the Russians might contribute to increase the divergence between the great powers? Had the war been fought to allow Nazi ideology to creep into our educational and scientific institutions by the back door? Do we want science at any price?”
In 1947 Operation Paperclip, still rather small, was in danger of being terminated. Instead, Truman transformed the U.S. military with the National Security Act, and created the best ally that Operation Paperclip could want: the CIA. Now the program took off, intentionally and willfully, with the full knowledge and understanding of the same U.S. President who had declared as a senator that if the Russians were winning the U.S. should help the Germans, and vice versa, to ensure that the most people possible died, the same president who viciously and pointlessly dropped two nuclear bombs on Japanese cities, the same president who brought us the war on Korea, the war without declaration, the secret wars, the permanent expanded empire of bases, the military secrecy in all matters, the imperial presidency, and the military-industrial complex. The U.S. Chemical Warfare Service took up the study of German chemical weapons at the end of the war as a means to continue in existence. George Merck both diagnosed biological weapons threats for the military and sold the military vaccines to handle them. War was business and business was going to be good for a long time to come.
But how big a change did the United States go through after World War II, and how much of it can be credited to Operation Paperclip? Isn’t a government that would give immunity to both Nazi and Japanese war criminals in order to learn their criminal ways already in a bad place? As one of the defendants argued in trial at Nuremberg, the U.S. had already engaged in its own experiments on humans using almost identical justifications to those offered by the Nazis. If that defendant had been aware, he could have pointed out that the U.S. was in that very moment engaged in such experiments in Guatemala. The Nazis had learned some of their eugenics and other nasty inclinations from Americans. Some of the Paperclip scientists had worked in the U.S. before the war, as many Americans had worked in Germany. These were not isolated worlds.
Looking beyond the secondary, scandalous, and sadistic crimes of war, what about the crime of war itself? We picture the United States as less guilty because it maneuvered the Japanese into the first attack, and because it did prosecute some of the war’s losers. But an impartial trial would have prosecuted Americans too. Bombs dropped on civilians killed and injured and destroyed more than any concentration camps — camps that in Germany had been modeled in part after U.S. camps for native Americans. Is it possible that Nazi scientists blended into the U.S. military so well because an institution that had already done what it had done to the Philippines was not in all that much need of nazification?
Yet, somehow, we think of the firebombing of Japanese cities and the complete leveling of German cities as less offensive that the hiring of Nazi scientists. But what is it that offends us about Nazi scientists? I don’t think it should be that they engaged in mass-murder for the wrong side, an error balanced out in some minds but their later work for mass-murder by the right side. And I don’t think it should be entirely that they engaged in sick human experimentation and forced labor. I do think those actions should offend us. But so should the construction of rockets that take thousands of lives. And it should offend us whomever it’s done for.
It’s curious to imagine a civilized society somewhere on earth some years from now. Would an immigrant with a past in the U.S. military be able to find a job? Would a review be needed? Had they tortured prisoners? Had they drone-struck children? Had they leveled houses or shot up civilians in any number of countries? Had they used cluster bombs? Depleted uranium? White phosphorous? Had they ever worked in the U.S. prison system? Immigrant detention system? Death row? How thorough a review would be needed? Would there be some level of just-following-orders behavior that would be deemed acceptable? Would it matter, not just what the person had done, but how they thought about the world?
Olduvaiblog: Musings on the coming collapse 