Gimme a Break! IRS Tax Loophole Can Reward Excessive Water Use in Drought-stricken West

By Abrahm Lustgarten (Reprinted with permission from ProPublica)

ProPublica’s reporting on the water crisis in the American West has highlighted any number of confounding contradictions worsening the problem: Farmers are encouraged to waste water so as to protect their legal rights to its dwindling supply in the years ahead; Las Vegas sought to impose restrictions on water use while placing no checks on its explosive population growth; the federal government has encouraged farmers to improve efficiency in watering crops, but continues to subsidize the growing of thirsty crops such as cotton in desert states like Arizona.

Today, we offer another installment in the contradictions amid a crisis.

In parts of the western U.S., wracked by historic drought, you can get a tax break for using an abundance of water.

That’s a typo, right? A joke?

Ah, no. But we understand your bafflement. The Colorado River has been trickling, its largest reservoirs less than half full. As recently as 2014 parts of Texas literally almost dried up. The National Academy of Sciences predicts the Southwest may be on the cusp of its worst dry spell in 1,000 years. Scientists are warning that the backup plan — groundwater aquifers from California to Nebraska — are all being sucked dry.

But, yes, the tax break exists — in parts of eight High Plains states.

Here’s how it works: Farmers — or anyone who uses water in a business — can ask the Internal Revenue Service for a tax write-off for what’s called a “depleted asset.” In certain places, water counts as an asset, just like oil, or minerals like copper. The more water gets used, the more cash credit farmers can claim against their income tax. And that’s just what almost 3,000 Texas landowners in just one water district appear to have done last year — a year in which nearly half of Texas was in a state of “severe” or “extreme” drought.”

Yikes. How much can they write off?

A bunch it seems, especially if you’re a big farm and own a lot of land. We talked to an accountant in Levelland, Texas. He had a client who wrote off $10,000. “Whenever you buy land, you’re getting the dirt … and of course you are getting the water,” said Sham Myatt, the accountant. And the idea is that that water is part of what you paid for in the land deal. If the aquifer was 50 feet deep at the time of the land sale, and it drops 10 feet in a dry year, then the farmer can deduct one-fifth of the value, and so on, until all the water is gone.

That’s not going to do much to conserve water, is it?

No. It’s not. In fact it’s an incentive to do the exact opposite. A farmer who tries to use less water because of the drought, say, by switching to really efficient irrigation techniques, could actually make less money. His water might last longer, but producing his crop would get a lot more expensive.

We called Nicholas Brozovic, an associate professor of agricultural economics and director of policy at the University of Nebraska’s Robert B. Daugherty Water for Food Institute. He’d actually never heard of the water deduction; it’s that obscure. But he laid out some textbook economics: If you’re overusing your water, then you are depreciating it, he said. And if the government pays for that, they are subsidizing that depreciation. “The more you deplete your groundwater, the higher your tax exemption and that must create an incentive not to conserve,” he said.

Hasn’t the federal government spent billions subsidizing conservation and the protection of the West’s groundwater, in part by building dams and encouraging people to use the water in rivers instead? Why would they forfeit federal tax dollars to do the opposite?

We called the IRS, and they initially shared our doubts. Not because they cared much about groundwater (it’s a tax agency!) but because they said they were pretty sure no such deduction was legal. They pointed us to section 613 of the tax code, and it couldn’t be more explicit: For the purposes of deducting the depreciating value of minerals, the definition “does not include soil, sod, dirt, turf, water, or mosses.” Ok, who would ever have thought of deducting mosses or sod? But anyway. That left us really confused.

Right, there were, after all, those farmers in Texas who seemed to have benefited from what the IRS said was not possible.

We encouraged the IRS to check again. They did. And then they found the provision they thought didn’t exist — right there in the text for Revenue Rule 65–296. An IRS spokesperson laid out for us the specifics: “Taxpayers are entitled to a cost depletion deduction for the exhaustion of their capital investment in the ground water extracted and disposed of by them in their business of irrigation farming specifically from the Ogallala Formation.”

Seems like some follow-up questions were in order.

For sure. We asked for clarification. The IRS said it would try to explain. Most importantly, they wanted to say it wasn’t quite as crazy as it sounded. The deduction is only available for one small part of the country — an area that includes parts of Texas, New Mexico, Oklahoma, Nebraska, Kansas, South Dakota, Wyoming and Colorado. And it should only apply if people are using water from a source that is running dry anyway.

But wait, what? You get a break when you use resources that are already in danger of vanishing?

Yes, that’s why it is what’s called a depleted asset. It’s of less and less value with every day. Your car is worth less the moment you drive it off the lot. Or, more similarly, oil companies track the falling value of their reserves the more they pump out from underground. In fact, energy companies have been taking oil depletion breaks for decades. Texas landowners would say their property is getting less valuable the less water there is to use on it.

Okay, okay, but water isn’t oil. It’s not a commodity. Access to it is a basic right. Yes? Please say that’s right.

Wrong. Ouch. I know, it hurts. But ProPublica last year wrote about all the ways water is coveted and controlled — and then often wasted — by just a few powerful groups. In most of the West, only some people and businesses have rights to it, depending on who showed up to claim it first. One big trend is that water is increasingly being bought and sold — including by hedge funds and big Wall Street investors, and the less water there is, the more the price is going up.

That’s a little scary. Let’s get back to depleted assets. So when did this tax break start?

About 50 years ago. A farmer in the Texas panhandle — along with his local water district — successfully sued the IRS, arguing that the roughly 200 million gallons he drew from his groundwater each year was no different than the depletion of the state’s other great natural resource, oil. He won, and the IRS was obliged to create rule 65–296 — the special allowance for tax credits that the IRS almost forgot about.

Again, it was supposed to be limited — just to a slice of Texas and eastern New Mexico. The court even went so far as to warn that the case shouldn’t become a precedent for groundwater tax claims elsewhere, saying the conditions in that area of the country were unique. But it didn’t take long for the rule to be expanded, albeit just a little bit. By the mid 1980’s any landowner overlying the sprawling Ogallala aquifer — a giant underground vault of precious but dwindling water — was eligible to file for the deductions, not just in North Texas and New Mexico.

That still doesn’t sound like much of a big deal … why does it matter?

Well, the Ogallala, which spans from central Texas north to Nebraska and South Dakota is the nation’s largest groundwater reserve and is one of the most important, and (famously) threatened water supplies in the country. Its heavy overuse and plummeting water levels rang alarms among policymakers more than half a century ago. So this is no insignificant place to be even indirectly encouraging overuse. Texas’ High Plains are one of the most intensely irrigated and productive farming regions in the country. Hundreds of thousands of acres of cotton and corn, among other staple commodities, are grown there using this Ogallala water.

So, do we know what’s happening to the Ogallala where all this farming is taking place?

We looked at recent water level changes in just one district — the one with thousands of tax credit claims — and found a disturbing trend. Underground water levels in the 16 counties of the High Plains Underground Water Conservation District have dropped nearly 10 feet over the last 10 years. Some parts of Castro County saw water levels drop more than five feet over the course of 2015 alone. The federal government estimates nearly 100 cubic miles of water have been withdrawn from the Ogallala in that part of Texas. That doesn’t automatically mean the tax credits are responsible — water levels are dropping in most places thanks to overuse and it would take a lot more research to link up the cause and effect. But it certainly isn’t a portrait of sustainability.

Aquifers are at risk across Arizona, California and other states as well, right? At least people can’t claim tax breaks there?

Not yet. But that could change, as water supplies worsen and word of the tax break circulates more widely. Almost no one we spoke with had heard of it — not water lawyers in Arizona or groundwater conservation scientists in California. Armed with the knowledge, there’s a pretty good chance farmers and businesses across the West could seek tax relief.

Because there is precedent?

Exactly.

What does the IRS say to that?

They say it’s very unlikely, mostly because they think the conditions in the Ogallala are rare, and that the agency’s policy is to reject water allowance claims anywhere outside of the places covered in the original lawsuit. But if more landowners, in more places, were to file suits challenging the IRS to allow them to deduct for their water, or if they were to petition the IRS directly, the agency says it would undertake a review to consider it on a case by case basis. Landowners would have to present extensive scientific evidence that showed their situation was more or less the same as in North Texas.

Is the IRS equipped to make such judgments?

Fair question. John Leshy, professor emeritus at the University of California Hastings College of the Law, and a former solicitor for the U.S. Department of Interior, isn’t persuaded. “The IRS has really created a can of worms for itself,” he said. “It doesn’t have any hydrological expertise.”

Hmmm. Not ideal. But what’s the bottom line? Are these tax breaks going to make any real difference in how quickly we use up the water supply?

It’s hard to tell, partly because no one appears to have examined that question. We asked the IRS for data on the number of claims and it hasn’t responded. Folks in Texas dismiss the suggestion that the tax benefits are incentivizing water use as ludicrous. Myatt, the accountant, points out that only about one-third of the deducted value translates to cash in hand, and says for many smaller farmers that amounts to just a few hundred dollars. Jason Coleman, manager of the High Plains Underground Water Conservation District, says his members are as concerned about conserving their water for the future as anyone. “Its already a declining resource,” he said. “I just can’t imagine someone saying I’m going to depreciate our resource any more because of a tax claim.”

But the academic consensus is that incentives encourage use, even overuse. And if the effect of depletion allowances on oil production are any guide — Leshy says they have spurred overproduction and led to artificially cheap, subsidized fuel prices — any significant expansion of the groundwater tax credit to other states could have lasting impacts on the way groundwater is used across the country.

So is anyone trying to do anything about this?

Not really, which is why people like Brent Blackwelder, president emeritus of the environmental group Friends of the Earth, which has long been involved in rooting out tax policy disincentives to conservation, are fuming. “It’s a pretty major outrage that we would so stupidly reward the over extraction and non-sustainable use of groundwater,” he told me. Blackwelder helped push to purge the tax code of perverse anti-conservation incentives like this one way back in the Reagan administration, with the 1986 Tax Reform Act. They were largely successful, weeding out several other odd loopholes. But the groundwater depletion allowance persisted. And since then, apparently, it’s been forgotten about by all but the farmers who rely on it.


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New Book Reveals Trump Is Actually Sleazier and Slimier Than We Ever Thought

“There is no moral core inside Donald Trump.”

By Steven Rosenfeld

Reprinted with permission from AlterNet

David Cay Johnston has been one of the nation’s premier investigative reporters for decades, specializing in the ways government works for the wealthy at the expense of everyday Americans. He first met and covered Donald Trump in the 1980s. In his latest book, The Making of Donald Trump, he profiles the many ways the Republican presidential nominee has gotten wealthy by bilking others, colluding with criminals, evading prosecution, and romancing the press. I spoke with Johnston recently about his new book.

Steven Rosenfeld: What are you trying to show readers about Donald Trump that they might not know?

David Cay Johnston: As you know, I’ve been trying to show people how government is creating inequality though all of these rules and laws that nobody knows about. The political donor class—a phrase that I coined by the way—are doing what economists call rent seeking. So I understand people who are terrified—they should be—and who think the government has worked against them. What’s nutty is this belief that Donald Trump is their friend.

This is a man who started his [presidential] campaign by saying wages are too high. This is a man who, when he does construction projects, deals with mob-controlled unions. That’s why Trump Towers [in Manhattan] are concrete, because the steelworkers are an honest union. This is a man who cheats workers out of their pay. Four dollars an hour he paid, and he cheated them out of some of their pay. That’s what a judge found. This is a man who tells vendors, Do this work. They do it and then he says, I am not going to pay you.

I don’t know if you saw the piece the other day where the manager, or whoever was responsible as his witness, at the Doral [Miami], over this guy who didn’t get paid the last $34,000 for his paint—he was a Benjamin Moore paint dealer—testified Mr. Trump felt he had paid enough. Nobody runs their business on that basis. You can think, and with good reason, of all sorts of bad things that corporations do. But they don’t go around saying to vendors or workers, “Uh, we paid enough. We’re not going to pay you.”

He is an enemy of these people. He is an active enemy of the people who have been ruined by this economy. And they’re buying his con job.

SR: Did he get his con artist skills from his dad, the builder Fred Trump?

DCJ: Partly he got it from his dad, whose business partner was a mob front and, as I show in the book, cheated and profiteered on the housing for returning GIs [after WW2]. But Donald also learned a lot from Roy Cohn [New York City mob lawyer and Sen. Joseph McCarthy’s assistant in the 1950s anti-communist witch hunts] about how to create a falsehood. Like when the government went after Trump and his dad for discriminating against blacks and Puerto Ricans, and they said, “This was an effort to put people on welfare in our buildings.” No it wasn’t. The [government’s] housing testers who were sent were black and Hispanic people who were economically qualified and they were turned away and then white people showed up with the exact same economics and they were shown multiple apartments.

SR: Since we are seeing some of that in other aspects of the campaign, tell me more about the lessons from Roy Cohn, like Trump’s assertion that if he doesn’t win big, the election is rigged.

DCJ: Always go on the attack. Always accuse the other side of dishonesty. And be ruthless. Remember one of the reasons he loved Roy Cohn—I quote him in the book—whom he regarded as not just as a mentor but as a second father, was he said Roy would brutalize for you. That’s the lesson. Listen, for Donald’s entire life he has broken the rules or ignored the rules and it’s done well for him. So why would you behave any other way? If you were raised in the household where your parents told you be immoral, and you got away with it, well, of course you’d be immoral.

SR: Have you seen that impulse change since you started covering him in the ’80s?

DCJ: Donald is 70 years old. I’m almost the same age, I’m 67. He’s not any different than when I met him, when he was in his early 40s. Donald is a guy who has no empathy for other people, who doesn’t see other people as human beings. He sees them as things to be used. That’s why when he was challenged about cutting off health care for his sickly grandnephew, over money, and he was asked, as I report in the book, “Don’t you think that will look cold-hearted?” [He replied] “What else can I do?” There is no moral core inside Donald Trump. There is no moral compass. It doesn’t exist.

SR: These stories in your book remind me of the badly behaving men in my grandfather’s generation. They were born around WW1, grew up in Brooklyn, didn’t have much to do with people outside their ethnicity and religion. They were sexist, bigots, didn’t need or want college education. They felt if they could just bluff and boss their way around and take whatever they could home, that they were big-time successes. Am I imagining something there?

DCJ: That’s a perfectly accurate way to view this… Donald is a product of his family history, of his time and place, and of his belief that he’s a really superior person, therefore all these other things don’t matter. You either worship and recognize Donald’s greatness or he has a word for you: loser! And it has worked for him. You do things that work for you.

His skill at shutting down law enforcement investigations—I cite those four grand juries, etc.—is extraordinary. He knows when to run to the cops and rat out people, or tell them information that will help them. He knows how to use the court system to cover up what he’s done by making a settlement on the condition that the record be sealed. And he’s masterful at this. It’s just astonishing how masterful he is at it. And then he’s masterful at the conventions of journalism.

All journalists who keep their jobs accurately quote what people tell them. Most journalists, even at the best papers, they don’t have a deep understanding of the things that they are reporting on. I can show you people at the New York Times, the L.A. Times, the Wall Street Journal, who really know their stuff. But I can also show you a lot of them who don’t and have pretty superficial knowledge of what they’re doing. Donald avoids group A and he goes for group B.

And his hiring of this guy from Breitbart [Stephen K. Bannon, chairman of Breitbart News site, as his campaign’s new chief executive]. There’s a very good piece I read this morning, how Donald’s lines line up with what’s in Breitbart. Because he clearly reads it. He’s brought this guy over. And so this is Donald’s view of reality, these people who are way off on the fringe crazy.

SR: Tell us how he typically overplays his hand and then reacts and treats others.

DCJ: Donald is not a good negotiator. He’s not a good businessman. And he often overplays his hand because of hubris. What he does when that happens is that he threatens to make terrible trouble for people with litigation, to tie them all up, so what they’ll do is settle with him, because who wants to spend—as one brave guy in the demolition workers did—spend 18 years in litigation with Trump. You just want it to go away. And he knows that. And he uses it. And if you don’t have the money to pursue him for 18 years, you have to have a lawyer who’s really willing to do that, you’re going to be told by the lawyers, there’s no gain here. And he knows that.

SR: The pollster Celinda Lake told me you can’t do much to convince people who believe in Trump to change their minds, but that he can do something to turn them off. Does that sound right to you?

DCJ: I would agree with you, sort of. George Lakoff points out that the people who are drawn to the father figure are very, very loyal, unless something happens that breaks that connection, and then they become fiercely opposed. Where Donald goes too far somewhere, or his statements appear to people to be outside of their acceptable range, some of them will justify it, but some of them will begin pulling away.

On the other side of this, however, is that a lot of the people supporting him—not all of them, but a lot of them—they believe all of this stuff that’s been planted for years about Hillary. I have had grown men with college degrees or advanced degrees who I know personally, because they are in my social circle, who are successful, tell me they can’t vote for Hillary. Well, why, I ask? “Well, because of all the people she’s had killed.” You mean Benghazi, I say? They go, “No. No. No. All the people that she’s had killed and murdered.” You look at them and say this is crazy. But they believe that. And if you believe that Hillary Clinton is really this evil person, then now you are faced with this choice between two evils and you’d rather take the guy who says he’s your champion as you understand the world.

People don’t know that Hillary Clinton, when she graduated from Yale and could have gotten an extraordinarily well-paying job at a top law firm—she would have been in complete demand—she went to work for the Children’s Defense Fund building a case for disabled children, kids in wheelchairs and things, who were denied a public education because of their disability.

SR: I hear this all the time too.

DCJ: I’ll you one thing I do tell people. Without a question, Hillary Clinton said she was under sniper fire—I think it was Bosnia. And it wasn’t true. What was true was they were warned about that. But here’s where she’s different from some other people. As soon as it was pointed out to her that that’s not right, she didn’t repeat it. She didn’t expand the story. She didn’t double down or triple down. She didn’t do what [former NBC anchor] Brian Williams did, where he enhanced the story and it got bigger and bigger. She immediately stopped.

All of us remember things that were wrong. When I was writing The Making of Donald Trump, I did half of a chapter and thought, that’s really good. And then I took a nap. I woke up and took a look and said, Okay, now I have to back and check my clips. I had it wrong. I misremembered what was there. And then I had to rewrite the chapter. Our memories are not computer records. Our memories change with time. We conflate things. We get them wrong. But the difference is Donald just makes things up. And he does it all the time.

SR: I wonder if the people reading your book or hearing about it will finally get that. He’s masterful at knowing that if you throw the first punch in the press, it will be quoted and nine times out of 10 no one will come around to question what’s behind it.

DCJ: That’s right. But to people who are in economic terror—that’s about half the population—Donald Trump poses as a savior. “I will save you.” “Only I can save you.” And to people who have been abandoned by both parties, they’ve been actively worked against by both parties, that’s a powerful message.

And basically it’s the same people who Bernie had, except they don’t have all the baggage with racism and hatred. I hear some of these young Bernie folks being interviewed on TV, and I am sure it’s a relatively small number of them and it’s misleading, but to see them on TV, saying, “I’m going to vote for Trump.” It’s like, how politically ignorant are you?

And I don’t believe the polls are reliable here at all. The polls have been all over the place this year. We have cell phones that have changed the nature of things, and I think lots of people do not want to sit next to a black person on an airplane, or in a restaurant, or work with them, but know if they say that it’s very bad for their work life. I think there are lot of people who will vote for Donald who will never tell a pollster that.

SR: He’s still dominating the news every day.

DCJ: Let me tell you one more thing that I think your audience would cotton to. Last week I did 19 hours on TV and radio one day, and then 12 hours, and 12, and 11. It’s all I’ve been doing since the book came out. It’s TV and radio to the point where it’s all a big blur. I have been on national television in Australia, multiple channels; Japan, Canada, multiple channels; England, multiple channels; France, multiple channels; Germany, national news programs.

None of the three U.S. networks have had a word bout my book. And they have not had me on the Sunday morning talk shows.

I had a producer for a cable show, who I know and bitched about some of this with, and who said to me, “David, they would never have you on a Sunday morning talk show for the most obvious reason. You should know that.” I said, “What’s the obvious reason?” She said, “Well, you would talk actual facts and substance. Watch these shows, they’re all superficial nonsense.” That’s my word—superficial nonsense. It would show up to audiences—the paucity of this. PBS had me on. Everything I said that dealt with Donald and crooks and mobsters, they cut out.

When the election is over, I am going to write some big pieces. One of them is about the press.


Steven Rosenfeld covers national political issues for AlterNet, including America’s retirement crisis, democracy and voting rights, and campaigns and elections. He is the author of “Count My Vote: A Citizen’s Guide to Voting” (AlterNet Books, 2008).

 


How America Rising Ties the GOP Establishment to the Stalkers Harassing Bill McKibben and Tom Steyer

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Hooked! The Unyielding Grip of Fossil Fuels on Global Life

By Michael Klare

Reprinted with permission from TomDispatch.com

Here’s the good news: wind power, solar power, and other renewable forms of energy are expanding far more quickly than anyone expected, ensuring that these systems will provide an ever-increasing share of our future energy supply.  According to the most recent projections from the Energy Information Administration (EIA) of the U.S. Department of Energy, global consumption of wind, solar, hydropower, and other renewables will double between now and 2040, jumping from 64 to 131 quadrillion British thermal units (BTUs).

And here’s the bad news: the consumption of oil, coal, and natural gas is also growing, making it likely that, whatever the advances of renewable energy, fossil fuels will continue to dominate the global landscape for decades to come, accelerating the pace of global warming and ensuring the intensification of climate-change catastrophes.

The rapid growth of renewable energy has given us much to cheer about.  Not so long ago, energy analysts were reporting that wind and solar systems were too costly to compete with oil, coal, and natural gas in the global marketplace.  Renewables would, it was then assumed, require pricey subsidies that might not always be available.  That was then and this is now.  Today, remarkably enough, wind and solar are already competitive with fossil fuels for many uses and in many markets.

If that wasn’t predicted, however, neither was this: despite such advances, the allure of fossil fuels hasn’t dissipated.  Individuals, governments, whole societies continue to opt for such fuels even when they gain no significant economic advantage from that choice and risk causing severe planetary harm.  Clearly, something irrational is at play.  Think of it as the fossil-fuel equivalent of an addictive inclination writ large.

The contradictory and troubling nature of the energy landscape is on clear display in the 2016 edition of the International Energy Outlook, the annual assessment of global trends released by the EIA this May.  The good news about renewables gets prominent attention in the report, which includes projections of global energy use through 2040.  “Renewables are the world’s fastest-growing energy source over the projection period,” it concludes.  Wind and solar are expected to demonstrate particular vigor in the years to come, their growth outpacing every other form of energy.  But because renewables start from such a small base — representing just 12% of all energy used in 2012 — they will continue to be overshadowed in the decades ahead, explosive growth or not.  In 2040, according to the report’s projections, fossil fuels will still have a grip on a staggering 78% of the world energy market, and — if you don’t mind getting thoroughly depressed — oil, coal, and natural gas will each still command larger shares of the market than all renewables combined.

Keep in mind that total energy consumption is expected to be much greater in 2040 than at present.  At that time, humanity will be using an estimated 815 quadrillion BTUs (compared to approximately 600 quadrillion today).  In other words, though fossil fuels will lose some of their market share to renewables, they will still experience striking growth in absolute terms.  Oil consumption, for example, is expected to increase by 34% from 90 million to 121 million barrels per day by 2040.  Despite all the negative publicity it’s been getting lately, coal, too, should experience substantial growth, rising from 153 to 180 quadrillion BTUs in “delivered energy” over this period.  And natural gas will be the fossil-fuel champ, with global demand for it jumping by 70%.  Put it all together and the consumption of fossil fuels is projected to increase by 177 quadrillion BTUs, or 38%, over the period the report surveys.

Anyone with even the most rudimentary knowledge of climate science has to shudder at such projections.  After all, emissions from the combustion of fossil fuels account for approximately three-quarters of the greenhouse gases humans are putting into the atmosphere.  An increase in their consumption of such magnitude will have a corresponding impact on the greenhouse effect that is accelerating the rise in global temperatures.

At the United Nations Climate Summit in Paris last December, delegates from more than 190 countries adopted a plan aimed at preventing global warming from exceeding 2 degrees Celsius (about 3.6 degrees Fahrenheit) above the pre-industrial level.  This target was chosen because most scientists believe that any warming beyond that will result in catastrophic and irreversible climate effects, including the melting of the Greenland and Antarctic ice caps (and a resulting sea-level rise of 10-20 feet).  Under the Paris Agreement, the participating nations signed onto a plan to take immediate steps to halt the growth of greenhouse gas emissions and then move to actual reductions.  Although the agreement doesn’t specify what measures should be taken to satisfy this requirement — each country is obliged to devise its own “intended nationally determined contributions” to the overall goal — the only practical approach for most countries would be to reduce fossil fuel consumption.

As the 2016 EIA report makes eye-poppingly clear, however, the endorsers of the Paris Agreement aren’t on track to reduce their consumption of oil, coal, and natural gas.  In fact, greenhouse gas emissions are expected to rise by an estimated 34% between 2012 and 2040 (from 32.3 billion to 43.2 billion metric tons).  That net increase of 10.9 billion metric tons is equal to the total carbon emissions of the United States, Canada, and Europe in 2012.  If such projections prove accurate, global temperatures will rise, possibly significantly above that 2 degree mark, with the destructive effects of climate change we are already witnessing today — the fires, heat waves, floods, droughts, storms, and sea level rise — only intensifying.

Exploring the Roots of Addiction

How to explain the world’s tenacious reliance on fossil fuels, despite all that we know about their role in global warming and those lofty promises made in Paris?

To some degree, it is undoubtedly the product of built-in momentum: our existing urban, industrial, and transportation infrastructure was largely constructed around fossil fuel-powered energy systems, and it will take a long time to replace or reconfigure them for a post-carbon future.  Most of our electricity, for example, is provided by coal- and gas-fired power plants that will continue to operate for years to come.  Even with the rapid growth of renewables, coal and natural gas are projected to supply 56% of the fuel for the world’s electrical power generation in 2040 (a drop of only 5% from today).  Likewise, the overwhelming majority of cars and trucks on the road are now fueled by gasoline and diesel.  Even if the number of new ones running on electricity were to spike, it would still be many years before oil-powered vehicles lost their commanding position.  As history tells us, transitions from one form of energy to another take time.

Then there’s the problem — and what a problem it is! — of vested interests.  Energy is the largest and most lucrative business in the world, and the giant fossil fuel companies have long enjoyed a privileged and highly profitable status.  Oil corporations like Chevron and ExxonMobil, along with their state-owned counterparts like Gazprom of Russia and Saudi Aramco, are consistently ranked among the world’s most valuable enterprises.  These companies — and the governments they’re associated with — are not inclined to surrender the massive profits they generate year after year for the future wellbeing of the planet.

As a result, it’s a guarantee that they will employ any means at their disposal (including well-established, well-funded ties to friendly politicians and political parties) to slow the transition to renewables.  In the United States, for example, the politicians of coal-producing states are now at work on plans to block the Obama administration’s “clean power” drive, which might indeed lead to a sharp reduction in coal consumption.  Similarly, Exxon has recruited friendly Republican officials to impede the efforts of some state attorney generals to investigate that company’s past suppression of information on the links between fossil fuel use and climate change.  And that’s just to scratch the surface of corporate efforts to mislead the public that have included the funding of the Heartland Institute and other climate-change-denying think tanks.

Of course, nowhere is the determination to sustain fossil fuels fiercer than in the “petro-states” that rely on their production for government revenues, provide energy subsidies to their citizens, and sometimes sell their products at below-market rates to encourage their use.  According to the International Energy Agency (IEA), in 2014 fossil fuel subsidies of various sorts added up to a staggering $493 billion worldwide — far more than those for the development of renewable forms of energy.  The G-20 group of leading industrial powers agreed in 2009 to phase out such subsidies, but a meeting of G-20 energy ministers in Beijing in June failed to adopt a timeline to complete the phase-out process, suggesting that little progress will be made when the heads of state of those countries meet in Hangzhou, China, this September.

None of this should surprise anyone, given the global economy’s institutionalized dependence on fossil fuels and the amounts of money at stake.  What it doesn’t explain, however, is the projected growth in global fossil fuel consumption.  A gradual decline, accelerating over time, would be consistent with a broad-scale but slow transition from carbon-based fuels to renewables.  That the opposite seems to be happening, that their use is actually expanding in most parts of the world, suggests that another factor is in play: addiction.

We all know that smoking tobacco, snorting cocaine, or consuming too much alcohol is bad for us, but many of us persist in doing so anyway, finding the resulting thrill, the relief, or the dulling of the pain of everyday life simply too great to resist.  In the same way, much of the world now seems to find it easier to fill up the car with the usual tankful of gasoline or flip the switch and receive electricity from coal or natural gas than to begin to shake our addiction to fossil fuels.  As in everyday life, so at a global level, the power of addiction seems regularly to trump the obvious desirability of embarking on another, far healthier path.

On a Fossil Fuel Bridge to Nowhere

Without acknowledging any of this, the 2016 EIA report indicates just how widespread and prevalent our fossil-fuel addiction remains.  In explaining the rising demand for oil, for example, it notes that “in the transportation sector, liquid fuels [predominantly petroleum] continue to provide most of the energy consumed.”  Even though “advances in nonliquids-based [electrical] transportation technologies are anticipated,” they will not prove sufficient “to offset the rising demand for transportation services worldwide,” and so the demand for gasoline and diesel will continue to grow.

Most of the increase in demand for petroleum-based fuels is expected tooccur in the developing world, where hundreds of millions of people are entering the middle class, buying their first gas-powered cars, and about to be hooked on an energy way of life that should be, but isn’t, dying.  Oil use is expected to grow in China by 57% between 2012 and 2040, and at a faster rate (131%!) in India.  Even in the United States, however, a growing preference for sport utility vehicles and pickup trucks continues to mean higher petroleum use.  In 2016, according to Edmunds.com, a car shopping and research site, nearly 75% of the people who traded in a hybrid or electric car to a dealer replaced it with an all-gas car, typically a larger vehicle like an SUV or a pickup.

The rising demand for coal follows a depressingly similar pattern.  Although it remains a major source of the greenhouse gases responsible for climate change, many developing nations, especially in Asia, continue to favor it when adding electricity capacity because of its low cost and familiar technology.  Although the demand for coal in China — long the leading consumer of that fuel — is slowing, that country is still expected to increase its usage by 12% by 2035.  The big story here, however, is India: according to the EIA, its coal consumption will grow by 62% in the years surveyed, eventually making it, not the United States, the world’s second largest consumer.  Most of that extra coal will go for electricity generation, once again to satisfy an “expanding middle class using more electricity-consuming appliances.”

And then there’s the mammoth expected increase in the demand for natural gas.  According to the latest EIA projections, its consumption will rise faster than any fuel except renewables.  Given the small base from which renewables start, however, gas will experience the biggest absolute increase of any fuel, 87 quadrillion BTUs between 2012 and 2040.  (In contrast, renewables are expected to grow by 68 quadrillion and oil by 62 quadrillion BTUs during this period.)

At present, natural gas appears to enjoy an enormous advantage in the global energy marketplace.  “In the power sector, natural gas is an attractive choice for new generating plants given its moderate capital cost and attractive pricing in many regions as well as the relatively high fuel efficiency and moderate capital cost of gas-fired plants,” the EIA notes.  It is also said to benefit from its “clean” reputation (compared to coal) in generating electricity.  “As more governments begin implementing national or regional plans to reduce carbon dioxide emissions, natural gas may displace consumption of the more carbon-intensive coal and liquid fuels.”

Unfortunately, despite that reputation, natural gas remains a carbon-based fossil fuel, and its expanded consumption will result in a significant increase in global greenhouse gas emissions.  In fact, the EIA claims that it will generate a larger increase in such emissions over the next quarter-century than either coal or oil — a disturbing note for those who contend that natural gas provides a “bridge” to a green energy future.

Seeking Treatment

If you were to read through the EIA’s latest report as I did, you, too, might end up depressed by humanity’s addictive need for its daily fossil fuel hit.  While the EIA’s analysts add the usual caveats, including the possibility that a more sweeping than expected follow-up climate agreement or strict enforcement of the one adopted last December could alter their projections, they detect no signs of the beginning of a determined move away from the reliance on fossil fuels.

If, indeed, addiction is a big part of the problem, any strategies undertaken to address climate change must incorporate a treatment component.  Simply saying that global warming is bad for the planet, and that prudence and morality oblige us to prevent the worst climate-related disasters, will no more suffice than would telling addicts that tobacco and hard drugs are bad for them.  Success in any global drive to avert climate catastrophe will involve tackling addictive behavior at its roots and promoting lasting changes in lifestyle.  To do that, it will be necessary to learn from the anti-drug and anti-tobacco communities about best practices, and apply them to fossil fuels.

Consider, for example, the case of anti-smoking efforts.  It was the medical community that first took up the struggle against tobacco and began by banning smoking in hospitals and other medical facilities.  This effort was later extended to public facilities — schools, government buildings, airports, and so on — until vast areas of the public sphere became smoke-free.  Anti-smoking activists also campaigned to have warning labels displayed in tobacco advertising and cigarette packaging.

Such approaches helped reduce tobacco consumption around the world and can be adapted to the anti-carbon struggle.  College campuses and town centers could, for instance, be declared car-free — a strategy already embraced by London’s newly elected mayor, Sadiq Khan.  Express lanes on major streets and highways can be reserved for hybrids, electric cars, and other alternative vehicles.  Gas station pumps and oil advertising can be made to incorporate warning signs saying something like, “Notice: consumption of this product increases your exposure to asthma, heat waves, sea level rise, and other threats to public health.”  Once such an approach began to be seriously considered, there would undoubtedly be a host of other ideas for how to begin to put limits on our fossil fuel addiction.

Such measures would have to be complemented by major moves to combat the excessive influence of the fossil fuel companies and energy states when it comes to setting both local and global policy.  In the U.S., for instance, severely restricting the scope of private donations in campaign financing, as Senator Bernie Sanders advocated in his presidential campaign, would be a way to start down this path.  Another would step up legal efforts to hold giant energy companies like ExxonMobil accountable for malfeasance in suppressing information about the links between fossil fuel combustion and global warming, just as, decades ago, anti-smoking activists tried to expose tobacco company criminality in suppressing information on the links between smoking and cancer.

Without similar efforts of every sort on a global level, one thing seems certain: the future projected by the EIA will indeed come to pass and human suffering of a previously unimaginable sort will be the order of the day.


 

Michael T. Klare, a TomDispatch regular, is a professor of peace and world security studies at Hampshire College and the author, most recently, of  The Race for What’s Left. A documentary movie version of his book Blood and Oil is available from the Media Education Foundation. Follow him on Twitter at @mklare1.

Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Book, Nick Turse’s Next Time They’ll Come to Count the Dead, and Tom Engelhardt’s latest book, Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

Copyright 2016 Michael T. Klare


How to Make a Political Revolution

By David Morris

Reprinted with permission from the Institute for Local Self-Reliance

[Editor’s Comment: Note in the article that follows the discussion of the Bank of North Dakota, which has received particular attention in the last few years because of its beneficial role in helping North Dakota weather the storms of the Great Recession. Note especially in this regard the writings of Ellen Brown, President of the Public Banking Institute, author of  Web of Debt and the The Public Bank Solution. See also her article, “NORTH DAKOTA’S ECONOMIC “MIRACLE”—IT’S NOT OIL.”]

nonpartisan league wagon

Nonpartisan League

On June 14th, North Dakotans voted to overrule their government’s decision to allow corporate ownership of farms. That they had the power to do so was a result of a political revolution that occurred almost exactly a century before, a revolution that may hold lessons for those like Bernie Sanders’ supporters who seek to establish a bottom-up political movement in the face of hostile political parties today.

Here’s the story. In the early 1900s North Dakota was effectively an economic colony of Minneapolis/Saint Paul. A Saint Paul based railroad tycoon controlled its freight prices. Minnesota companies owned many of the grain elevators that sat next to the rail lines and often cheated farmers by giving their wheat a lower grade than deserved. Since the flour mills were in Minneapolis, shipping costs reduced the price wheat farmers received. Minneapolis banks held farmers’ mortgages and their operating loans to farmers carried a higher interest than they charged at home.

Farmers, who represented a majority of the population, tried to free themselves from bondage by making the political system more responsive. In 1913 they gained an important victory when the legislature gave them the right, by petition, to initiate a law or constitutional amendment as well as to overturn a law passed by the legislature.

But this was a limited victory for while the people could enable they could not compel.

In 1914, for example, after a 30-year effort, voters authorized the legislature to build a state-owned grain elevator and mill. But in January 1915 a state legislative committee concluded it “would be a waste of the people’s money as well as a humiliating disappointment to the people of the state.” The legislature refused funding.

A few weeks later, two former candidates on the Socialist Party ticket, Arthur C. Townley and Albert Bowen, launched a new political organization, the Non Partisan League (NPL). The name conveyed their strategy: To rely more on program-based politics than party-based politics. According to the NPL its program intended to end the “utterly unendurable” situation in which “the people of this state have always been dependent on their existence on industries, banks, markets, storage and transportation facilities either existing altogether outside of the state or controlled by great private interests outside the state.”

The NPL’s platform contained concrete and specific measures: state ownership of elevators, flour mills, packing houses and cold storage plants; state inspection of grain grading and dockage; state hail insurance; rural credit banks operating at cost; exemption of farm improvements from taxation.

In his recent book, Insurgent Democracy Michael Lansing explains, “Small-property holders anxious to use government to create a more equitable form of capitalism cannot be easily categorized in contemporary political term.” The NPL “reminded Americans that corporate capitalism was not the only way forward.” Supporters of the NPL wanted state sponsored market fairness but not state control. They wanted public options, not public monopolies.

In the language of our 2016 political campaigns, it would not be much of a stretch to characterize the NPL as a movement for an American-style decentralized, anti-corporate, democratic socialism.

The NPL was as one contemporary observer, Thorstein Veblen described it, “large, loose, animated and untidy, but sure of itself in its settled disallowance of the Vested Interests… “

The movement was membership-based. Members were kept informed through a regular newsletter. This was part of a massive popular education effort. Membership fees allowed the NPL to hire organizers and lecturers who traveled throughout the state. Townley, the founder and leader of the NPL, proved an entertaining and charismatic speaker. Sometimes thousands would gather to hear him speak. Speeches themselves were community affairs.

The goal was to convince farmers that collectively they could significantly influence the decisions that would affect their personal and business lives.

To gain power the NPL relied on a political tool born of the Progressive movement: the political primary. To make government more responsive and transparent, Progressives urged states to bypass political conventions, political bosses and backroom deals and adopt direct primaries. By 1916, 25 of the then 48 U.S. states had adopted the primary as the vehicle for nominating political candidates.

The primary system gave people the power to elect candidates of their political party, but the key to the remarkable political revolution that swept through North Dakota was its adoption, in 1908, of an “open primary” law that allowed anyone to vote in a party’s primary even if unaffiliated with that party.

On March 29, 1916 the NPL took advantage of that law by convening its first convention. Attendees endorsed candidates who swore allegiance to its platform. These candidates ran in the June Republican primary, a primary targeted by the NPL because then (as now) the Republican Party dominated North Dakota.

In June 1916 the NPL effectively took over the Republican Party. In November 1916 NPL –endorsed candidates won every statewide office except one and gained a majority in the state Assembly, although not in the Senate. By that time the NPL boasted 40,000 members, an astonishing number given the state population of only 620,000.

In the succeeding legislative session the NPL was able to implement parts of its platform: a grain grading system, a 9-hour workday for women, regulation of railroad shipping rates and increased state aid to rural schools. But the Senate narrowly defeated the key to implementing NPL’s broad vision: a constitutional amendment to allow for state-owned businesses.

In 1918, the NPL gained a majority in the state Senate. That year North Dakotans voted on 10 constitutional amendments. They approved every one. One, endorsed by a resounding margin of 59-41 gave state, county and local governments permission “to engage in industry, enterprises or businesses.” Another allowed the state to guarantee $2 million in bonds and established voting requirements for future bonding. Another created state hail insurance.

Other amendments expanded the possibility of direct democracy by reducing the number of signatures required to put an initiative on the ballot, and by allowing constitutional amendments to be passed by a simple majority of the voters.

In June 1919, voters approved 6 of 7 legislatively referred statutes, including the establishment of a state bank, that latter by a vote of 56-44. The one ballot initiative North Dakotans rejected—giving the Governor the authority to appoint every county school superintendent—was itself revealing. North Dakotans wanted a state that could stand up to big out-of-state corporations but they preferred local control to state control.

The Bank of North Dakota (BND) was the centerpiece of the NPL’s effort to take back control of their economy. It was intended to strengthen, not undercut local banks. It established no branches, nor did it accept independent deposits or accounts. The Bank “strongly recommended” that borrowers seek mortgages by working through local institutions. Banks across the state used the BND as a clearinghouse for various financial transactions.

Farmers immediately benefited as their interest rates on loans dropped to about 6 percent from the prevailing 8.7 percent.

In November 1920 voters strengthened the BND by narrowly approving an initiative requiring all state, county, township, municipal and school district funds be deposited there.

In March 1920 the NPL legislature referred to the people a constitutional amendment allowing them to petition for the recall of any elected officials. That unprecedented extension of direct democracy proved its undoing, for in late 1918, at the peak of the NPL’s power, political opposition had coalesced into a new organization, the Independent Voters Association (IVA). As the NPL battled internal divisions and a growing unease that it had begun to pursue measures beyond its mandate, the IVA gained support.

The IVA used the political tools the NPL had created. In 1921 its members successfully petitioned for recall elections for the three state officers who constituted the membership of the Industrial Commission that oversaw state enterprises: the governor, attorney general and commissioner of agriculture. The IVA slate won by a whisker. It was the first and last time a U.S. Governor has been successfully recalled.

The IVA immediately set about to undo the NPL program by putting nine provisions on the ballot, including one to abolish the state Bank. Another intended to shrink the capacity of state government by reducing the amount of state bonded debt. Another would have undermined the open primary by requiring separate party ballots for primaries.

Every ballot measure lost, albeit by very narrow margins.

In November 1922 the IVA achieved what the NPL had four years before: Control of all three branches of state government. The NPL’s abrupt disintegration resulted from a number of factors. In 1921 the price of wheat dropped about 60 percent. The resulting economic pain would have reduced the support for any sitting government. The Russian Revolution ushered in a nationwide “Red Scare.” The opposition labeled the NPL’s leaders Communists and Bolsheviks and launched a new magazine called Red Flame. Townley himself was jailed under a Minnesota sedition law for opposing the U.S. involvement in WWI. Meanwhile, internal divisions continued to beset the NPL.

The Legacy of the NPL

As the Nation magazine observed in 1923, “…although the visible machinery largely melted away, a sentiment and a point of view had been established in the minds of hundreds of thousands of farmers and ranchers.” Looking back in 1955, Robert L. Morian, author of the classic Political Prairie Fire, comment that the NPL helped to develop “some of the most independently minded electorates in the country.”

Those independently minded electorates and their anti-corporate, pro-cooperative and independent business sentiment continued to inform and often guide policymakers in the decades to come.

The North Dakota Mill and Elevator Association began operation in a modern facility in 1922. Today it consists of 7 milling units, an elevator and flour mill and a packing warehouse to prepare bagged products for shipment. It is the largest flour mill in the U.S. and the only state-owned milling facility.

In 1932, North Dakotans voted 57 to 43 to ban corporations from owning or leasing farmland.

In 1963 the legislature enacted a law that required pharmacies be owned by a state-registered pharmacist. The effect was to ban chains, except those operating at the time the law was passed.

In 1980 North Dakotans voted to establish a State Housing Finance Agency to provide mortgages to low income households.

In recent years several of these laws protecting independent farmers and businesses have come under attack by big corporations. After several attempts by Big Pharmacy failed to convince the legislature to repeal the Pharmacy Ownership Law, Wal Mart spent $9.3 million to finance a ballot initiative. In November 2014, by a vote of 59-41 the initiative lost.

In 2015 big corporations did convince the legislature to overturn the 1932 anti-corporate farming law. This June, as noted at the beginning of this article, by a resounding margin of 76-24 North Dakotans voted to reinstate the old law.

Today the economic structure of North Dakota reflects its focus on independent and cooperative businesses.

The Pharmacy Ownership law, for example, has markedly benefited North Dakota. A report by the Institute for Local Self-Reliance (ILSR) found that on every key measure of pharmacy care, including quality and the price of drugs, North Dakota’s independent pharmacies outperform those of neighboring states and the U.S. as a whole. Unsurprisingly North Dakota also has more pharmacies per capita than other states. Its rural residents are more likely to have a nearby pharmacist.

North Dakota’s banking system reflects a similar community-based structure. An analysis by ILSR found that, on a per capita basis, the state boasts almost six times as many locally owned financial institutions as the rest of the nation. (89 small and mid sized community banks and 38 credit unions). These control 83 percent of the deposits of the state. North Dakota’s community banks have given 400 percent more small business loans than the national average. Student loan rates are among the lowest in the country.

As Stacy Mitchell, Director of ILSR’s Community-Scaled Economy Initiative observes, “While the publicly owned BND might well be characterized as a socialist institution, it has had the effect of enabling North Dakota’s local banks to be very successful capitalists.” In recent years local banks in North Dakota have earned a return on capital nearly twice that of the nation’s largest 20 banks.

In the last two decades years the BND has generated almost $1 billion in “profit” and returned almost half of that to the state’s general fund.

Recall that in 1919, voters had approved the Bank of North Dakota, by the very slim margin of 51-49. A switch of 2,000 votes would have killed the Bank in its infancy. Today no party would dare propose its destruction.

North Dakota’s impressive 21st century telecommunications infrastructure is also a testament to its historic focus on local and independent ownership. The state ranks 47th in population density. That means it has one of the highest costs per household for installing state-of-the-art high-speed fiber networks. Nevertheless it boasts the highest percentage of people with access to such networks in the country. Why? One reason is its abundance of rural cooperatives and small telecom companies, 41 providers in all, including 17 cooperatives.

North Dakota is also home to the Dakota Carrier Network. Owned by 15 independent rural telecommunications companies, the DCN crisscrosses the state with more 1,400 miles of fiber backbone. In the last five years independently owned companies have invested more than $100 million per year to bring fiber to the home. They now serve more than 164,000 customers in 250 communities.

What Should Bernie’s Brethren Do?

Certainly the road to political power faces many more obstacles now than the NPL faced a century ago. North Dakota was a largely agricultural state. The key to NPL’s organizing effort was access to a car and gas money, not an easy get in those days, but much easier than the amount of money now needed to mount a political campaign.

Most new movements will be unable to take advantage of the open primary. After the NPL gained power in more than half a dozen states, the existing parties fought back. Nevertheless, 11 states still have pure open primaries; about a dozen more have hybrid systems.

Recently the courts have not been sympathetic to the open primary. Not long ago the Supreme Court invented a new “right of association” and bestowed that right on political parties. In 2000, for example, by a 7-2 vote, the Court overturned a California form of open primary approved by the voters by a 60-40 vote. Writing for the Majority, Justice Antonin Scalia objected that the California law “forces political parties to associate with—to have their nominees, and hence their positions, determined by—those who, at best, have refused to affiliate with the party, and, at worst, have expressly affiliated with a rival.”

After the California decision the voters of Washington, by a similar 60-40 vote, adopted an open primary system similar to California’s but with a key difference: The candidate would have to declare a “party preference” that would appear next to his or her name on the ballot. In 2008, the Supreme Court, again by a 7-2 vote, this time upheld that law, a ruling that might allow for a variant of the NPL strategy.

Before we develop a strategy for winning office we need to take a page from the NPL playbook and develop a platform, one consisting of specific, concrete, policies, not a laundry list of all desirable policies.

Bernie Sanders and his followers currently are working to write a platform for the Democratic Party convention. That is important and useful, but that platform by its nature will have a national focus and speak to the exercise of power by the federal government. We also need platforms that focus on states and cities and counties and school districts and offer concrete measures they have the authority to enact.

Those platforms will provide the basis for endorsing candidates, regardless of their political affiliation or whether they run in a closed or open primary state. In those states that permit, we may be able to enact various planks of the platform through initiative and referendum. At this point 27 states have initiative and 24 have referendum. Nineteen allow constitutional amendments by initiative.

The Nonpartisan League’s tenure in power was brief, but its policies, the public institutions it built and perhaps most important, the public sentiment it nurtured and brought to maturity, endure to this day: A true example of a political revolution from the bottom up.


About David Morris

David Morris is co-founder of the Institute for Local Self-Reliance and directs its initiative on The Public Good. He is the author of the New City States, Seeing the Light, and three other non-fiction books. His essays on public policy are regularly published by On the Commons, Alternet, Common Dreams and the Huffington Post.

Connect David on twitter or email dmorris@ilsr.org

 


The Age of Disintegration: Neoliberalism, Interventionism, the Resource Curse, and a Fragmenting World

By Patrick Cockburn

Reprinted with permission from TomDispatch.com

Introduction by Tom Engelhardt:

Here’s an unavoidable fact: we are now in a Brexit world. We are seeing the first signs of a major fragmentation of this planet that, until recently, the cognoscenti were convinced was globalizing rapidly and headed for unifications of all sorts. If you want a single figure that catches the grim spirit of our moment, it’s 65 million. That’s the record-setting number of people that the Office of the U.N. High Commissioner for Refugees estimates were displaced in 2015 by “conflict and persecution,” one of every 113 inhabitants of the planet. That’s more than were generated in the wake of World War II at a time when significant parts of the globe had been devastated. Of the 21 million refugees among them, 51% were children (often separated from their parents and lacking any access to education). Most of the displaced of 2015 were, in fact, internal refugees, still in their own often splintered states. Almost half of those who fled across borders have come from three countries: Syria (4.9 million), Afghanistan (2.7 million), and Somalia (1.1 million).

Despite the headlines about refugees heading for Europe — approximately a million of them made it there last year (with more dying on the way) — most of the uprooted who leave their homelands end up in poor or economically mid-level neighboring lands, with Turkey at 2.5 million refugees leading the way. In this fashion, the disruption of spreading conflicts and chaos, especially across the Greater Middle East and Africa, only brings more conflict and chaos with it wherever those refugees are forced to go.

And keep in mind that, as extreme as that 65 million figure may seem, it undoubtedly represents the beginning, not the end, of a process. For one thing, it doesn’t even include the estimated 19 million people displaced last year by extreme weather events and other natural disasters. Yet in coming decades, the heating of our planet, with attendant weather extremes (like the present heat wave in the American West) and rising sea levels, will undoubtedly produce its own waves of new refugees, only adding to both the conflicts and the fragmentation.

As Patrick Cockburn points out today, we have entered “an age of disintegration.” And he should know. There may be no Western reporter who has covered the grim dawn of that age in the Greater Middle East and North Africa — from Afghanistan to Iraq, Syria to Libya — more fully or movingly than he has over this last decade and a half. His latest book, Chaos & Caliphate: Jihadis and the West in the Struggle for the Middle East, gives a vivid taste of his reporting and of a world that is at present cracking under the pressure of the conflicts he has witnessed. And imagine that so much of this began, at the bargain-basement cost of a mere $400,000 to $500,000, with 19 (mainly Saudi) fanatics, and a few hijacked airliners. Osama bin Laden must be smiling in his watery grave. Tom

The Age of Disintegration
Neoliberalism, Interventionism, the Resource Curse, and a Fragmenting World
By Patrick Cockburn

We live in an age of disintegration. Nowhere is this more evident than in the Greater Middle East and Africa. Across the vast swath of territory between Pakistan and Nigeria, there are at least seven ongoing wars — in Afghanistan, Iraq, Syria, Yemen, Libya, Somalia, and South Sudan. These conflicts are extraordinarily destructive. They are tearing apart the countries in which they are taking place in ways that make it doubtful they will ever recover. Cities like Aleppo in Syria, Ramadi in Iraq, Taiz in Yemen, and Benghazi in Libya have been partly or entirely reduced to ruins. There are also at least three other serious insurgencies: in southeast Turkey, where Kurdish guerrillas are fighting the Turkish army, in Egypt’s Sinai Peninsula where a little-reported but ferocious guerrilla conflict is underway, and in northeast Nigeria and neighboring countries where Boko Haram continues to launch murderous attacks.

All of these have a number of things in common: they are endless and seem never to produce definitive winners or losers. (Afghanistan has effectively been at war since 1979, Somalia since 1991.) They involve the destruction or dismemberment of unified nations, their de facto partition amid mass population movements and upheavals — well publicized in the case of Syria and Iraq, less so in places like South Sudan where more than 2.4 million people have been displaced in recent years.

Add in one more similarity, no less crucial for being obvious: in most of these countries, where Islam is the dominant religion, extreme Salafi-Jihadi movements, including the Islamic State (IS), al-Qaeda, and the Taliban are essentially the only available vehicles for protest and rebellion. By now, they have completely replaced the socialist and nationalist movements that predominated in the twentieth century; these years have, that is, seen a remarkable reversion to religious, ethnic, and tribal identity, to movements that seek to establish their own exclusive territory by the persecution and expulsion of minorities.

In the process and under the pressure of outside military intervention, a vast region of the planet seems to be cracking open. Yet there is very little understanding of these processes in Washington. This was recently well illustrated by the protest of 51 State Department diplomats against President Obama’s Syrian policy and their suggestion that air strikes be launched targeting Syrian regime forces in the belief that President Bashar al-Assad would then abide by a ceasefire. The diplomats’ approach remains typically simpleminded in this most complex of conflicts, assuming as it does that the Syrian government’s barrel-bombing of civilians and other grim acts are the “root cause of the instability that continues to grip Syria and the broader region.”

It is as if the minds of these diplomats were still in the Cold War era, as if they were still fighting the Soviet Union and its allies. Against all the evidence of the last five years, there is an assumption that a barely extant moderate Syrian opposition would benefit from the fall of Assad, and a lack of understanding that the armed opposition in Syria is entirely dominated by the Islamic State and al-Qaeda clones.

Though the invasion of Iraq in 2003 is now widely admitted to have been a mistake (even by those who supported it at the time), no real lessons have been learned about why direct or indirect military interventions by the U.S. and its allies in the Middle East over the last quarter century have all only exacerbated violence and accelerated state failure.

A Mass Extinction of Independent States

The Islamic State, just celebrating its second anniversary, is the grotesque outcome of this era of chaos and conflict. That such a monstrous cult exists at all is a symptom of the deep dislocation societies throughout that region, ruled by corrupt and discredited elites, have suffered. Its rise — and that of various Taliban and al-Qaeda-style clones — is a measure of the weakness of its opponents.

The Iraqi army and security forces, for example, had 350,000 soldiers and 660,000 police on the books in June 2014 when a few thousand Islamic State fighters captured Mosul, the country’s second largest city, which they still hold. Today the Iraqi army, security services, and about 20,000 Shia paramilitaries backed by the massive firepower of the United States and allied air forces have fought their way into the city of Fallujah, 40 miles west of Baghdad, against the resistance of IS fighters who may have numbered as few as 900. In Afghanistan, the resurgence of the Taliban, supposedly decisively defeated in 2001, came about less because of the popularity of that movement than the contempt with which Afghans came to regard their corrupt government in Kabul.

Everywhere nation states are enfeebled or collapsing, as authoritarian leaders battle for survival in the face of mounting external and internal pressures. This is hardly the way the region was expected to develop. Countries that had escaped from colonial rule in the second half of the twentieth century were supposed to become more, not less, unified as time passed.

Between 1950 and 1975, nationalist leaders came to power in much of the previously colonized world. They promised to achieve national self-determination by creating powerful independent states through the concentration of whatever political, military, and economic resources were at hand. Instead, over the decades, many of these regimes transmuted into police states controlled by small numbers of staggeringly wealthy families and a coterie of businessmen dependent on their connections to such leaders as Hosni Mubarak in Egypt or Bashar al-Assad in Syria.

In recent years, such countries were also opened up to the economic whirlwind of neoliberalism, which destroyed any crude social contract that existed between rulers and ruled. Take Syria. There, rural towns and villages that had once supported the Baathist regime of the al-Assad family because it provided jobs and kept the prices of necessities low were, after 2000, abandoned to market forces skewed in favor of those in power. These places would become the backbone of the post-2011 uprising. At the same time, institutions like the Organization of Petroleum Exporting Countries (OPEC) that had done so much to enhance the wealth and power of regional oil producers in the 1970s have lost their capacity for united action.

The question for our moment: Why is a “mass extinction” of independent states taking place in the Middle East, North Africa, and beyond? Western politicians and media often refer to such countries as “failed states.” The implication embedded in that term is that the process is a self-destructive one. But several of the states now labeled “failed” like Libya only became so after Western-backed opposition movements seized power with the support and military intervention of Washington and NATO, and proved too weak to impose their own central governments and so a monopoly of violence within the national territory.

In many ways, this process began with the intervention of a U.S.-led coalition in Iraq in 2003 leading to the overthrow of Saddam Hussein, the shutting down of his Baathist Party, and the disbanding of his military. Whatever their faults, Saddam and Libya’s autocratic ruler Muammar Gaddafi were clearly demonized and blamed for all ethnic, sectarian, and regional differences in the countries they ruled, forces that were, in fact, set loose in grim ways upon their deaths.

A question remains, however: Why did the opposition to autocracy and to Western intervention take on an Islamic form and why were the Islamic movements that came to dominate the armed resistance in Iraq and Syria in particular so violent, regressive, and sectarian? Put another way, how could such groups find so many people willing to die for their causes, while their opponents found so few? When IS battle groups were sweeping through northern Iraq in the summer of 2014, soldiers who had thrown aside their uniforms and weapons and deserted that country’s northern cities would justify their flight by saying derisively: “Die for [then-Prime Minister Nouri] al-Maliki? Never!”

A common explanation for the rise of Islamic resistance movements is that the socialist, secularist, and nationalist opposition had been crushed by the old regimes’ security forces, while the Islamists were not. In countries like Libya and Syria, however, Islamists were savagely persecuted, too, and they still came to dominate the opposition. And yet, while these religious movements were strong enough to oppose governments, they generally have not proven strong enough to replace them.

Too Weak to Win, But Too Strong to Lose

Though there are clearly many reasons for the present disintegration of states and they differ somewhat from place to place, one thing is beyond question: the phenomenon itself is becoming the norm across vast reaches of the planet.

If you’re looking for the causes of state failure in our time, the place to start is undoubtedly with the end of the Cold War a quarter-century ago. Once it was over, neither the U.S. nor the new Russia that emerged from the Soviet Union’s implosion had a significant interest in continuing to prop up “failed states,” as each had for so long, fearing that the rival superpower and its local proxies would otherwise take over. Previously, national leaders in places like the Greater Middle East had been able to maintain a degree of independence for their countries by balancing between Moscow and Washington. With the break-up of the Soviet Union, this was no longer feasible.

In addition, the triumph of neoliberal free-market economics in the wake of the Soviet Union’s collapse added a critical element to the mix. It would prove far more destabilizing than it looked at the time.

Again, consider Syria. The expansion of the free market in a country where there was neither democratic accountability nor the rule of law meant one thing above all: plutocrats linked to the nation’s ruling family took anything that seemed potentially profitable. In the process, they grew staggeringly wealthy, while the denizens of Syria’s impoverished villages, country towns, and city slums, who had once looked to the state for jobs and cheap food, suffered. It should have surprised no one that those places became the strongholds of the Syrian uprising after 2011. In the capital, Damascus, as the reign of neoliberalism spread, even the lesser members of the mukhabarat, or secret police, found themselves living on only $200 to $300 a month, while the state became a machine for thievery.

This sort of thievery and the auctioning off of the nation’s patrimony spread across the region in these years. The new Egyptian ruler, General Abdel Fattah al-Sisi, merciless toward any sign of domestic dissent, was typical. In a country that once had been a standard bearer for nationalist regimes the world over, he didn’t hesitate this April to try to hand over two islands in the Red Sea to Saudi Arabia on whose funding and aid his regime is dependent. (To the surprise of everyone, an Egyptian court recently overruled Sisi’s decision.)

That gesture, deeply unpopular among increasingly impoverished Egyptians, was symbolic of a larger change in the balance of power in the Middle East: once the most powerful states in the region — Egypt, Syria, and Iraq — had been secular nationalists and a genuine counterbalance to Saudi Arabia and the Persian Gulf monarchies. As those secular autocracies weakened, however, the power and influence of the Sunni fundamentalist monarchies only increased. If 2011 saw rebellion and revolution spread across the Greater Middle East as the Arab Spring briefly blossomed, it also saw counterrevolution spread, funded by those oil-rich absolute Gulf monarchies, which were never going to tolerate democratic secular regime change in Syria or Libya.

Add in one more process at work making such states ever more fragile: the production and sale of natural resources — oil, gas, and minerals — and the kleptomania that goes with it. Such countries often suffer from what has become known as “the resources curse”: states increasingly dependent for revenues on the sale of their natural resources — enough to theoretically provide the whole population with a reasonably decent standard of living — turn instead into grotesquely corrupt dictatorships. In them, the yachts of local billionaires with crucial connections to the regime of the moment bob in harbors surrounded by slums running with raw sewage. In such nations, politics tends to focus on elites battling and maneuvering to steal state revenues and transfer them as rapidly as possible out of the country.

This has been the pattern of economic and political life in much of sub-Saharan Africa from Angola to Nigeria. In the Middle East and North Africa, however, a somewhat different system exists, one usually misunderstood by the outside world. There is similarly great inequality in Iraq or Saudi Arabia with similarly kleptocratic elites. They have, however, ruled over patronage states in which a significant part of the population is offered jobs in the public sector in return for political passivity or support for the kleptocrats.

In Iraq with a population of 33 million people, for instance, no less than seven million of them are on the government payroll, thanks to salaries or pensions that cost the government $4 billion a month. This crude way of distributing oil revenues to the people has often been denounced by Western commentators and economists as corruption. They, in turn, generally recommend cutting the number of these jobs, but this would mean that all, rather than just part, of the state’s resource revenues would be stolen by the elite. This, in fact, is increasingly the case in such lands as oil prices bottom out and even the Saudi royals begin to cut back on state support for the populace.

Neoliberalism was once believed to be the path to secular democracy and free-market economies. In practice, it has been anything but. Instead, in conjunction with the resource curse, as well as repeated military interventions by Washington and its allies, free-market economics has profoundly destabilized the Greater Middle East. Encouraged by Washington and Brussels, twenty-first-century neoliberalism has made unequal societies ever more unequal and helped transform already corrupt regimes into looting machines. This is also, of course, a formula for the success of the Islamic State or any other radical alternative to the status quo. Such movements are bound to find support in impoverished or neglected regions like eastern Syria or eastern Libya.

Note, however, that this process of destabilization is by no means confined to the Greater Middle East and North Africa. We are indeed in the age of destabilization, a phenomenon that is on the rise globally and at present spreading into the Balkans and Eastern Europe (with the European Union ever less able to influence events there). People no longer speak of European integration, but of how to prevent the complete break-up of the European Union in the wake of the British vote to leave.

The reasons why a narrow majority of Britons voted for Brexit have parallels with the Middle East: the free-market economic policies pursued by governments since Margaret Thatcher was prime minister have widened the gap between rich and poor and between wealthy cities and much of the rest of the country. Britain might be doing well, but millions of Britons did not share in the prosperity. The referendum about continued membership in the European Union, the option almost universally advocated by the British establishment, became the catalyst for protest against the status quo. The anger of the “Leave” voters has much in common with that of Donald Trump supporters in the United States.

The U.S. remains a superpower, but is no longer as powerful as it once was. It, too, is feeling the strains of this global moment, in which it and its local allies are powerful enough to imagine they can get rid of regimes they do not like, but either they do not quite succeed, as in Syria, or succeed but cannot replace what they have destroyed, as in Libya. An Iraqi politician once said that the problem in his country was that parties and movements were “too weak to win, but too strong to lose.” This is increasingly the pattern for the whole region and is spreading elsewhere. It carries with it the possibility of an endless cycle of indecisive wars and an era of instability that has already begun.


Patrick Cockburn is a Middle East correspondent for the Independent of London and the author of five books on the Middle East, the latest of which is Chaos and Caliphate: Jihadis and the West in the Struggle for the Middle East(OR Books).

Follow TomDispatch on Twitter and join us on Facebook. Check out the newest Dispatch Book, Nick Turse’s Next Time They’ll Come to Count the Dead, and Tom Engelhardt’s latest book, Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

Copyright 2016 Patrick Cockburn


The #1 Factor Experts Say Accounts for High Number of Mass Shootings in U.S.

Welcome to the world of environmental criminology.

By Patricia Pearson / Reprinted from AlterNet

June 21, 2016

GunsCanadians are reputed to be polite. But that isn’t a very compelling argument for why the lone wolves there are less inclined to engage in the kind of mass shooting that occurred in Orlando. All three pathologies that appeared to be in play at the horrific Pulse nightclub massacre—homophobia, psychological instability and adherence to a cult-like “Ism” that could act as a justifying frame in the killer’s mind—exist for some of Canada’s citizens as well. Two of those factors resulted in rifle bullets whizzing around the halls of the Canadian Parliament in October 2014.

The shooter, Michael-Zahef Bibeau, had an illegally acquired Winchester Model 94, a deer-hunting rifle that enabled him to fire off all of seven rounds before he had to halt in his tracks and fumble to reload. He was handily tackled at that point by security. Just hold that thought.

Canadians have had their fair share of “mass stabbings,” which virtually by definition don’t turn out to be particularly massive. Knives don’t kill people, people kill people, but people kill people on a markedly diminished scale with knives, and that’s hard not to notice for those of us who live outside the U.S.

To acquire and carry a gun in Canada, you need to go through a mind-boggling number of tests and procedures, the results of which are then vetted by police. Each one of these steps surely acts as a cool-down procedure on a mentally unstable mind.

Explosively enraged at the world? First attend your “gun safety class” on a Saturday, next available slot in two months, in the town 20 miles from your house. Then study for, write and pass the safety test that enables you to apply—to the police—for a license. That will entail extensive background checking on their part, after which you may or may not be freed to research where you can go to purchase your weapon and finally unleash your hateful rage.

A commonly repeated argument in the U.S. is that men of murderous intent will just go ahead and buy their guns on the black market. Perhaps, but in Canada apparently there aren’t many assault rifles lying around. The black market, after all, isn’t just down the street beside the corner store. It’s more akin to a word-of-mouth social network. Think loosely assembled gangs passing around Glocks as opposed to isolated, fantasizing aggressors with no real-world criminal ties, like Adam Lanza in Sandy Hook.

The internet is a grand marketplace for pathologies but not that helpful when things have to be delivered by UPS. So if the guns aren’t legally on offer, or indeed, in Lanza’s case, in the house, then the black market will tend to act as a baffle.

Canada’s largest gun massacre took place in 1989, the year the Berlin Wall came down. It was directed at female engineering students in Montreal, slaying 14. The date, December 6, has become a national day of mourning and activism for violence against women. In other words, mass shootings in your neighbor to the north are sufficiently rare that we all still focus on that particular event 27 years ago, in an annual memorial event. (The Montreal Massacre also led to an overhaul of gun laws.)

What, then, has enabled so many mentally unstable Americans to inflict so much carnage that America can sometimes feel as chaotic and unsafe as the marketplaces of Baghdad? If florid gun availability isn’t your go-to answer, consider the answer a different way. There is a subfield within criminological theory called “environmental criminology.” The ideas kicked around in this field are that people don’t commit crimes due to intrinsic factors like poverty or instability unless they are swimming in an environment of criminal possibility. Readily available, high-velocity weapons, for instance, would be a feature of that environment.

One of the frames for this discussion in criminology is “routine activities theory,” first proposed by Marcus Felson and Lawrence Cohen. According to this theory, a woman is more likely, for example, to be sexually assaulted in an urban area near a transit route than in an empty farmhouse far from help, because the farmhouse is simply not on her attacker’s routine pathway.

The criminologist Kim Rossmo of Texas State University in Austin has developed an investigative approach he calls geographic profiling, in which you can map the routine activities of unidentified violent offenders and determine where to look for them based on where they committed their crime. Why? Because the perpetrator will have traversed his daily life routes multiple times, like an animal circling its territory, before summoning the nerve to attack. Multiple times he will travel past the same bus stop where he began taking note of a potential victim, while on the way home from his job.

In light of these ideas, one might imagine what fermentation takes place in an unstable mind passing several times a month past a gun display. Guns like the AR-15 are, or have been until recently, on sale at Walmart, Target, Costco, and every other shop you’d routinely pass by as an American living in a state like Florida. What if, over time, an inchoate idea becomes fixed, or a plan becomes psychologically plausible because the opportunity repeatedly presents itself?

It’s like a nightmare funhouse version of the children’s story, The Little Engine That Could. The notion that those guns are easily available to you, and can be used to commit mass murder, is then, arguably, reinforced each time a mass murder makes headlines.

ISIL and Al Qaeda are undeniably goading anyone who will listen to take up arms against the West. But in North America at least, they aren’t the ones supplying the arms. Without ready access to guns, radicalized Canadians have done their best: one used a car to run over a Canadian Armed Forces Officer in Quebec two years ago. Others have been arrested for scheming to blow up a train.

Yet, from our standpoint as witnesses to the roiling tragedies of American gun violence, Omar Mateen actually has more in common with Adam Lanza of Sandy Hook and Virginia Tech shooter Seung-Hui Cho, in spite of their ostensibly different sources of inspiration. Senator MaCain may wish to blame Orlando on Obama’s foreign policy, but on what does he blame Sandy Hook and Virginia Tech and Georgia? The reality is that all of these shooters were swimming in the same violent sea.


Canadian journalist Patricia Pearson’s most recent book is Opening Heaven’s Door.


Sixty local women needed for Community Health Impacts of Mining Exposure (CHIME 2) Study

Press ReleaseSierra_Streams

Sierra Streams Institute
431 Uren Street, Suite C
Nevada City, ca 95959
530-265-6090

Sixty local women needed for Community Health Impacts of Mining Exposure (CHIME 2) Study

Nevada City-based non-profit Sierra Streams Institute is partnering with the Cancer Prevention Institute of California to launch an important new study on the health consequences of living in a mining-impacted community.

Sierra Streams Institute is currently seeking women over the age of 18 years, with a history of breast cancer and currently living in western Nevada County to participate in this exciting research project.  Participants will be asked to provide a urine sample, toenail clippings, and complete a brief questionnaire.  They are also planning a subsequent study involving in-home environmental sampling and are waiting for final approval of the study protocols.

This study, funded by state tobacco taxes through the California Breast Cancer Research Program, will focus on the amount of cadmium and arsenic in the bodies of women with and without breast cancer residing in historical Gold Country.

These two metals are of interest because they are found at high levels throughout Gold Country, are known carcinogens and may play a role in developing breast cancer.  The three most populous counties in Gold Country, including Nevada County, have breast cancer rates that rank in the top ten counties in California.

To volunteer for the CHIME (Community Health Impacts of Mining Exposure) study or to learn more about this ground-breaking study, please visit Sierra Streams Institute website at:  http://www.sierrastreamsinstitute.org/CHIME.html, or contact Joanne Hild joanne@sierrastreams.org or Katy Janes katy@sierrastreams.org at phone (530) 265-6090 x200 or x202. Given our small community, all personal information and research data will be collected by Cancer Prevention Institute of California in order to protect your privacy.  No personal information will be shared with Sierra Streams Institute staff or anyone else.

Cancer_Prevention_Institute


Privatizing America’s Public Land

How the Raid on Malheur Screened a Future Raid on Real Estate

By William deBuys
Reprinted with permission from Tomdispatch.com

It goes without saying that in a democracy everyone is entitled to his or her own opinions. The trouble starts when people think they are also entitled to their own facts.

Away out West, on the hundreds of millions of acres of public lands that most Americans take for granted (if they are aware of them at all), the trouble is deep, widespread, and won’t soon go away. Last winter’s armed take-over and 41-day occupation of Malheur National Wildlife Refuge in southeastern Oregon is a case in point. It was carried out by people who, if they hadn’t been white and dressed as cowboys, might have been called “terrorists” and treated as such. Their interpretation of the history of western lands and of the judicial basis for federal land ownership — or at least that of their leaders, since they weren’t exactly a band of intellectuals — was only loosely linked to reality.

At least some of them took inspiration from the notion that Jesus Christ wrote the Constitution (which would be news to the Deists, like James Madison, who were its actual authors) and that it prohibits federal ownership of any land excepting administrative sites within the United States — a contention that more than two centuries of American jurisprudence has emphatically repudiated.

The troubling thing is that similar delusions infect pockets of unrest throughout the West, lending a kind of twisted legitimacy to efforts at both the state and national level to transfer western public lands to states and counties. To be sure, not all the proponents of this liquidation of America’s national patrimony subscribe to wing-nut doctrines; sometimes they just use them.

Greed can suffice to motivate those who lust for the real estate bonanzas and resource giveaways that would result if states gained title to, say, the 264 million acres presently controlled by the Bureau of Land Management (BLM). General combativeness and hostility toward government also play their roles, and the usual right-wing mega-donors, including the Koch brothers, pump money into a bewildering array of agitator groups to help keep the fires of resentment burning.

The louder the drum chant of crazy “facts” gets, the more the Alice-in-Wonderland logic behind them threatens to seize the popular narrative about America’s public lands — how they came to be and what they represent.  This, in turn, prepares the way for the betrayal of one of the nation’s deepest traditions and for the loss of yet more of its natural heritage. Conversely, those who value American public lands have been laggard in articulating an updated vision for those open spaces appropriate to the twenty-first century and capable of expressing what the unsettled “fruited plains” and “purple mountain majesties” of the West still mean for our national experience and our capacity to meet the challenges of the future.

The Malice at Malheur

The leaders of the Malheur occupation, Ammon and Ryan Bundy, are the sons of Cliven Bundy, a Nevada rancher and public lands scofflaw who gained notoriety two years ago following a standoff with federal law enforcement officers. Back in the 1990s, the elder Bundy had stopped paying grazing fees, claiming that the federal government had no authority to regulate the public lands where his cattle fed. In 2014, with Bundy $1.1 million in arrears and his grazing permits transferred to the local county government, the Bureau of Land Management moved to round up and confiscate his 400 head of cattle.

Via social media, Bundy appealed to militia and “patriot” groups for support, and hundreds of armed resisters rallied to his ranch 90 miles north of Las Vegas. When the ensuing showdown threatened to become a bloodbath like the Waco siege of 1993, the authorities withdrew.

The government’s retreat and its failure to arrest members of the Bundy family or their allies for acts of armed resistance set the stage for the Malheur takeover, but the roots of the incident go back to the Sagebrush Rebellion of the 1970s and 1980s and the Wise Use Movement that succeeded it. The Sagebrush Rebellion was triggered by a national inventory of public lands to identify areas appropriate for designation as “wilderness” (under the National Wilderness Preservation System).  Its advocates also protested the enforcement of government protections for archaeological sites and endangered species. Wise Use groups echoed those complaints and essentially argued against anything the environmental movement was for, urging the amped-up exploitation of natural resources on western lands.

Ammon Bundy put his own rogue-Mormon spin on that message by claiming divine inspiration and sanction for his actions. Ostensibly, the Malheur occupation was intended to show support for nearby ranchers Dwight and Stephen Hammond, who faced jail terms for setting illegal range fires (and who immediately distanced themselves from the occupation). But Bundy didn’t stop there. He called on “patriots all over the country” to join his cause and help “free up” federal land for ranching, mining, and logging, pointedly adding, “We need you to bring your guns.”

Malheur was an odd place for white guys to make a stand in favor of “returning” federal land to its “rightful owners” — that is, themselves. The refuge was established in 1908 when Teddy Roosevelt declared a modest area of public domain to be a wildlife refuge. If anyone then occupied the land, it was members of the Burns Paiute tribe, not white settlers. In the 1930s, the refuge expanded when the government bought the bankrupt remnants of a former cattle baron’s empire. At the time, Malheur was its own mini-Dust Bowl. The purchase, which enlarged protection for once-fabulous wetlands supporting thousands of migrating birds, was essentially a bailout.

The people who joined the Bundys in the Malheur occupation were a strange lot. Few had any relationship to ranching or actual cows, aside from sitting down to eat a hamburger. Some were ex-military; others claimed to be (but weren’t). Quite a few had links to Tea Party groups or to “patriot” organizations including the Oath Keepers, theThree Percenters, and an assortment of other militia outfits. One described himself as “an old hippie from San Francisco,” jazzed by the excitement of the occupation and uncaring about its purposes. He also happened to be a convicted murderer (second degree) — of his father.

Straight thinking was not a requirement for admission to the occupiers’ cause. The fellow who photogenically rode his horse around the refuge while displaying a large American flag, for example, turned out to be acutely concerned lest the federal government divest itself of public lands. He feared the loss of access to cherished places where he liked to ride his horse. Because of that, he joined an armed effort aimed at forcing the government to do exactly what he didn’t want. Go figure.

Following the shooting death of LaVoy Finicum, the Malheur occupier who committed suicide-by-cop at a roadblock on January 26th, the occupation unraveled. At last count, the Bundy brothers and 24 others had been arrested and charged with a laundry list of crimes, including conspiracy to prevent federal employees from carrying out their duties and destruction of public property. All but one or two of them are still in jail.

Nor did the feds stop there. They finally nabbed Cliven Bundy at an airport after he attended a memorial service for Finicum, and also charged 18 others in connection with the 2014 Nevada standoff. Some of the 18 were already in custody for their involvement at Malheur. Bundy’s illegal cattle, which the government unsuccessfully tried to confiscate in 2014, remain at large.

More Mad Cowboy Disease in Utah

Despite the government’s thorough, if belated, crackdown, the hostility toward public lands on display at Malheur has hardly been contained. Such resentments are of a piece with the anger suffusing the presidential campaigns, although paradoxically enough Donald Trump has spoken out in favor of retaining federal lands. (Ted Cruz, by contrast, campaigned against Trump in Nevada by promising to “fight day and night to return full control of Nevada’s lands to its rightful owners, its citizens.”)

The darkest side of this “movement” is undoubtedly its well-documented association with armed militia groups and their persistent threat of violence. Gunmen from the Oath Keepers, for instance, obstructed federal officials from shutting down mines violating environmental regulations in both Oregon and Montana.  According to the Southern Poverty Law Center, the current, rapid growth of militia groups is unprecedented and appears to have been spurred by the 2014 standoff at the Bundy ranch. Notices for “meet-ups” among “patriots” to show support for the incarcerated Bundys and the “martyred” Finicum are abundant on social media.

A similar virus has infected several western state legislatures, including those of Montana, Oregon, Wyoming, and Nevada. Representative Michele Fiore, who hovered at the fringes of the Malheur occupation, for instance, introduced a bill in the Nevada legislature to transfer federal lands there to state control, irrespective of federal wishes. Considered patently unconstitutional, it was quickly dismissed. A Nevada senate resolution calling on Washington D.C. to initiate action to transfer those lands received more serious consideration.

The game is being played more cagily in Utah. There, lawmakers approved legislation in March that authorized and partly funded the state’s attorney general to sue the federal government for title to approximately 30 million acres of Utah public lands. The suit would pursue strategies advanced via a study produced by a New Orleans law firm outlining “legitimate legal theories” that, it contended, might lead to the wholesale transfer of lands to the state.

The expected cost of the litigation has been estimated at $14 million and Utah has sought allies among other western states. So far, they’ve found no takers willing to join the suit, possibly because other attorneys general have concluded that the legal theories behind it are rubbish.

Utah has also exported its anti-federalism to Capitol Hill. One of its congressmen, Rob Bishop, currently chairs the House Natural Resources Committee and sympathetically held hearings in February on several bills, introduced by representatives from Alaska, Idaho, and Utah, that would place federal lands under state control. Lisa Murkowski, a Republican from Alaska and chair of the Energy and Natural Resources Committee, has promoted similar bills in the Senate.

Hanging on to “the Solace of Open Spaces”

Lost among the headlines, sound bites, and posturing is any serious discussion of America’s public lands and their purposes. Ammon Bundy was completely correct, early in the occupation of Malheur, when he said, “This refuge is rightfully owned by the people.” His problem was that his definition of “people” only included people like him. The Burns Paiute tribe, whose ancestral homeland includes Malheur and whose sacred sites are protected by federal law, certainly did not figure into his plans. The thousands of annual visitors to Malheur, who appreciate its 320 bird species and other wildlife, and the millions more who support the National Wildlife Refuge System, also seem not to be the “people” Bundy had in mind. The same might be said for anyone attracted to the idea of intact natural landscapes and functioning ecosystems.

The greatest vulnerability of America’s public lands is that the millions of their rightful owners scarcely know they exist. Ask the average New Yorker what the Bureau of Land Management is, and the odds are that you’ll get a confused stare. Even many people in the West, who live close to those public lands, have trouble differentiating the National Parks from the National Forests, though those two classes of land are administered for substantially different purposes by two different government departments, Interior and Agriculture. Yet most people agree that the wild open spaces of the nation’s grandest landscapes constitute a collective treasure.

In essence, they are our national commons, our shared resource, not just for material goods, like timber, clean water, and minerals, but for recreation and inspiration. Seventy percent of all hunters are said to use public lands, and the percentages of birders, campers, hikers, and other recreationists must be at least as high. Public lands also help buffer us against the uncertainties of the future. Only public lands, for instance, spread unbroken over great enough distances to offer the connectedness that many plants and animals will require to adapt, to the extent possible, to a warming climate. Moreover, as the struggle to wean the economy away from fossil fuels continues, only public lands, with their unified federal ownership, are susceptible to the kind of sweeping shift in national energy policy necessary to “keep it in the ground.”

For all these reasons, the future of the nation’s 640 million acres of public lands deserves a more prominent place in our national discourse. The patterns of the past, emphasizing extractive, industrial uses of those lands, have long been in decline. An alternate path focused on restoration and biodiversity conservation has instead steadily gained traction, and indeed, its priorities — which include making room for endangered species — have inspired many of the objections of the Malheur occupiers.

Two things are certain: when large acreages of public domain are transferred to the states, significant portions of them end up being sold off to private interests. That creates a new kind of inequality that, in the natural world, parallels this era’s growing economic gap between rich and poor. It is an inequality of access to big, wild lands and to the ineffable something that Wyoming writer Gretel Ehrlich called the “solace of open spaces” and Pulitzer-winning novelist Wallace Stegner termed “the native home of hope.”

Thanks to the great western commons, which the Bundys and their legislative champions would like to dismantle, all Americans still enjoy the freedom to roam on some of the most spectacular lands on the planet. That access and that connection have been part of the American experience from Plymouth Rock through the westward migration to the present day. It is part of what makes us Americans.

The Depression-era folksinger Woody Guthrie understood the issues attending the privatization of common land. He offered his opinion of them in the least sung verse of his most famous song:

“There was a big high wall there that tried to stop me
Sign was painted, said: “Private Property”
But on the back side it didn’t say nothing —
This land was made for you and me.”


William deBuys, a TomDispatch regular, is the author of eight books, the most recent of which is The Last Unicorn: A Search for One of Earth’s Rarest Creatures. He has written extensively on water, drought, and climate in the West, including A Great Aridness: Climate Change and the Future of the American Southwest. Based in New Mexico, he has managed ranches and devised cooperative grazing programs involving both ranchers and government land managers.  

Follow TomDispatch on Twitter and join it on Facebook. Check out the newest Dispatch Book, Nick Turse’s Next Time They’ll Come to Count the Dead, and Tom Engelhardt’s latest book, Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

Copyright 2016 William deBuys


“Print the Money”: Trump is Right About This, And Not Much Else

Editor’s Note: Proponents of Modern Monetary Theory will appreciate this article as an example of their fundamental tenet: a “sovereign government is the monopoly supplier of its currency and can issue currency of any denomination in physical or non-physical forms. As such the government has an unlimited capacity to pay for the things it wishes to purchase and to fulfill promised future payments, and has an unlimited ability to provide funds to the other sectors. Thus, insolvency and bankruptcy of this government is not possible. It can always pay”

“Print the money” has been called crazy talk, but it may be the only sane solution to a $19 trillion federal debt that has doubled in the last 10 years. The solution of Abraham Lincoln and the American colonists can still work today.

By Ellen Brown

Trump_Dollar“Reckless,” “alarming,” “disastrous,” “swashbuckling,” “playing with fire,” “crazy talk,” “lost in a forest of nonsense”: these are a few of the labels applied by media commentators to Donald Trump’s latest proposal for dealing with the federal debt. On Monday, May 9th, the presumptive Republican presidential candidate said on CNN, “You print the money.”

The remark was in response to a firestorm created the previous week, when Trump was asked if the US should pay its debt in full or possibly negotiate partial repayment. He replied, “I would borrow, knowing that if the economy crashed, you could make a deal.” Commentators took this to mean a default. On May 9, Trump countered that he was misquoted:

People said I want to go and buy debt and default on debt – these people are crazy. This is the United States government. First of all, you never have to default because you print the money, I hate to tell you, okay? So there’s never a default.

That remark wasn’t exactly crazy. It echoed one by former Federal Reserve ChairmanAlan Greenspan, who said in 2011:

The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default.

Paying the government’s debts by just issuing the money is as American as apple pie – if you go back far enough. Benjamin Franklin attributed the remarkable growth of the American colonies to this innovative funding solution. Abraham Lincoln revived the colonial system of government-issued money when he endorsed the printing of $450 million in US Notes or “greenbacks” during the Civil War. The greenbacks not only helped the Union win the war but triggered a period of robust national growth and saved the taxpayers about $14 billion in interest payments.

But back to Trump. He went on to explain:

I said if we can buy back government debt at a discount – in other words, if interest rates go up and we can buy bonds back at a discount – if we are liquid enough as a country we should do that.

Apparently he was referring to the fact that when interest rates go up, long-term bonds at the lower rate become available on the secondary market at a discount. Anyone who holds the bonds to maturity still gets full value, but many investors want to cash out early and are willing to take less. As explained on MorningStar.com:

If a bond with a 5% coupon and a ten-year maturity is sold on the secondary market today while newly issued ten-year bonds have a 6% coupon, then the 5% bond will sell for $92.56 (par value $100).

But critics still were not satisfied. In an article titled “Why Donald Trump’s Debt Proposal Is Reckless,” CNNMoney said:

[T]he federal government doesn’t have any money to buy debt back with. The U.S. already has $19 trillion in debt. Trump’s plan would require the U.S. Treasury to issue new debt to buy old debt.

Trump, however, was not talking about borrowing the money. He was talking about printing the money. CNNMoney’s response was:

That can cause inflation (or even hyperinflation), and send prices of everything from food to rent skyrocketing.

The Hyperinflation that Wasn’t

CNN was not alone in calling the notion of printing our way out of debt recklessly inflationary. But would it be? The Federal Reserve has already bought $4.5 trillion in assets, $2.7 trillion of which were federal securities, simply by “printing the money.”

When the Fed’s QE program was initiated, critics called it recklessly hyperinflationary. But it did not even create the modest 2% inflation the Fed was aiming for. QE was combined with ZIRP – zero interest rates for banks – encouraging borrowing for speculation, driving up the stock market and real estate. But the Consumer Price Index, productivity and jobs barely budged.

While the Fed has stopped its QE program for the time being, the European Central Bank and the Bank of Japan have jumped in, buying back massive amounts of their own governments’ debts by simply issuing the money. There too, the inflation needle has barely budged. As noted on CNBC in February:

Central banks have been pumping money into the global economy without a whole lot to show for it other than sharply higher stock prices, and even that has been on the downturn for the past year.

Growth remains anemic, and worries are escalating that the U.S. and the rest of the world are on the brink of a recession, despite bargain-basement interest rates and trillions in liquidity.

Helicopter Money Goes Mainstream

European economists and central bankers are wringing their hands over what to do about a flagging economy despite radical austerity measures and increasingly unrepayable debt. One suggestion gaining traction is “helicopter money” – just issue money and drop it directly into the economy in some way. In QE as done today, the newly issued money makes it no further than the balance sheets of banks. It does not get into the producing economy or the pockets of consumers, where it would need to go in order to create the demand necessary to stimulate productivity. Helicopter money would create that demand. Proposed alternatives include a universal national dividend; zero or low interest loans to local governments; and “people’s QE” for infrastructure, job creation, student debt relief, etc.

Simply buying back federal securities with money issued by the central bank (or the U.S. Treasury) would also get money into the real economy, if Congress were allowed to increase its budget in tandem. As observed in The Economist on May 1, 2016:

Advocates of helicopter money do not really intend to throw money out of aircraft. Broadly speaking, they argue for fiscal stimulus—in the form of government spending, tax cuts or direct payments to citizens—financed with newly printed money rather than through borrowing or taxation. Quantitative easing (QE) qualifies, so long as the central bank buying the government bonds promises to hold them to maturity, with interest payments and principal remitted back to the government like most central-bank profits.

As Dean Baker, co-director of the Center for Economic and Policy Research in Washington, wrote in response to the debt ceiling crisis in November 2010:

There is no reason that the Fed can’t just buy this debt (as it is largely doing) and hold it indefinitely. If the Fed holds the debt, there is no interest burden for future taxpayers. The Fed refunds its interest earnings to the Treasury every year. Last year the Fed refunded almost $80 billion in interest to the Treasury, nearly 40 percent of the country’s net interest burden. And the Fed has other tools to ensure that the expansion of the monetary base required to purchase the debt does not lead to inflation.

An even cleaner solution would be to simply void out the debt held by the Fed. That was the 2011 proposal of then-presidential candidate Ron Paul for dealing with the debt ceiling crisis. As his proposal was explained in Time Magazine, today the Treasury pays interest on its securities to the Fed, which returns 90% of these payments to the Treasury. Despite this shell game of payments, the $1.7 trillion in US bonds owned by the Fed is still counted toward the debt ceiling. Paul’s plan:

Get the Fed and the Treasury to rip up that debt. It’s fake debt anyway. And the Fed is legally allowed to return the debt to the Treasury to be destroyed.

Congressman Alan Grayson, a Democrat, also endorsed this proposal.

Financial author Richard Duncan makes a strong case for going further than just monetizing existing debt. He argues that under current market conditions, the US could actually rebuild its collapsing infrastructure by just printing the money, without causing price inflation. Prices go up when demand (money) exceeds supply (goods and services); and with automation and the availability of cheap labor in vast global markets today, supply can keep up with demand for decades to come. Duncan observes:

The combination of fiat money and Globalization creates a unique moment in history where the governments of the developed economies can print money on an aggressive scale without causing inflation. They should take advantage of this once-in-history opportunity . . . .

Returning the Power to Create Money to the People

The right of government to issue its own money was one of the principles for which the American Revolution was fought. Americans are increasingly waking up to the fact that the vast majority of the money supply is no longer issued by the government but is created by private banks when they make loans; and that with that power goes enormous power over the economy itself.

The issue that should be debated is one that dominated political discussion in the 19thcentury but that few candidates are even aware of today: should creation and control of the money supply be public or private? Donald Trump’s willingness to transgress the conservative taboo against public money creation is a welcome step in opening that debate.


 


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