Untold History of the US – Bush and Clinton Squandered Peace

Part 9 of Oliver Stones Untold History of the United States covers the Bush senior and Clinton presidency

Bush Senior Presidency

Stone begins by exploring the role of Bush’s father Prescott Bush and other Wall street figures in supporting the rise of Hitler and the Nazi war machine. The list of Wall Street corporations that supplied money, weapons, chemicals, tanks, aircraft and other material support to the Third Reich is a long one: Ford, IBM, GM, Hearst, Standard Oil, Dupont, Kodak, United Fruit, Westinghouse, Douglas Aircraft, ITT, GE, Singer, International Harvester, Union Bank, Chase Manhattan Bank, JP Morgan and the Bank of International Settlements.

Many of these companies demanded (and received) reparations when the Allies bombed their German factories.

Stone devotes much of this episode to the fall of totalitarian rule in Eastern Europe (1989-91), which he describes as the largest peaceful revolution in history. He also discusses the military coup by Boris Yeltsin that shut down parliamentary rule in the Russian Federation and the role of Wall Street, the World Bank, IMF and a handful of Russian oligarchs in systematically stripping the Russian people of their industrial wealth. During this period, many Russians died of malnutrition and medically preventable illness. The life expectancy would drop from 67 to 57 for men and from 76 to 70 for women.

Bush senior, surrounded by anti-Soviet hawks (eg Dick Cheney and Donald Rumsfeld who would go on to found Project for a New American Century) rebuffed all Gorbachev’s overtures for world peace. Stone maintains Gorbachev would never have been forced out of office if Bush had supported him.

The Clinton Presidency

Instead of delivering the promised “peace dividend” when the Cold War ended, Clinton initiated a new wave of defense spending and multiple military interventions overseas. Among them

• He launched a war on Yugoslavia to gain access to Caspian Sea oil for US oil companies.
• He authorized numerous bombing raids on Iraq, supposedly as enforcement of the no-fly zone in regions controlled by Kurds and Shiite rebels.
• He began expanding NATO to former Eastern Bloc countries to enable US oil companies to build pipelines to transport Russian oil to Europe.
• He ordered 75 cruise missiles (at $750,000 each) to be fired on a Sudanese pharmaceutical factory and Zawhar Kili Camp in Afghanistan to distract public attention from the Monica Lewinsky scandal.

Bush and Clinton: Squandered Peace – New World Order

How Bill Clinton Tried to Privatize Social Security in 1998

In this presentation, author Thomas Franks talks about his recent book Hey Liberal, Listen Up: Or, What Ever Happened to the Party of the People. The focus of his latest book is the blue collar backlash that has resulted in the probable selection of fake populist Donald Trump as the 2016 Republican presidential candidate. Franks places the blame for this squarely on Democrats, owing to their abandonment of working people.

As Franks describes it, the pro-Wall Street swing of the Democratic Party is based on a very deliberate strategy by Bill Clinton and his supporters to “screw over” their traditional power base (ie African Americans and organized labor).  Clinton proudly justified this strategy with the observation, “they have nowhere else to go.”

Franks most shocking revelation is that Clinton took office in 1992 with a deliberate determination to repeal the New Deal. In 1997, he made a secret deal with Republican House Speaker Newt Gingrich to ram a bill through Congress privatizing Social Security (which Clinton mentions in his 1998 State of the Union address). Thanks to the Monica Lewinsky scandal, this bill never happened.

 

How the CIA Funds Jihad

The Power of Nightmares

Directed by Adam Curtis

BBC (2003)

Part 2 The Phantom Victory

Film Review

Part 2 focuses on the Soviet occupation of Afghanistan between 1979 and 1989 – and how the CIA funded and trained the Islamist Mujahideen to combat the occupation.

Both Carter’s National Security Adviser Zbigniew Brzezinski and the neoconservatives claim credit for the hare-brained and incredibly short sighted scheme to recruit, fund and train a jihadist army in Afghanistan. In addition to providing sophisticated weaponry, the CIA trained the Mujahideen in terror techniques, such as assassination, car bombs and improvised explosive devices (IDEs).

Abdullah Azzam, the Palestinian who led the Mujahideen, put out a call for all Muslims to join Afghanistan’s holy war. He believed that victory in Afghanistan would inspire foreign fighters to return to their homelands and overthrow corrupt secular dictators the US was propping up.

One Saudi who answered this call was a phenomenally wealthy construction contractor named Osama bin Laden. He, too, provided funding for the Mujahideen.

Arab governments, recognizing a unique opportunity to expel their own jihadist troublemakers, opened their jails and exiled their Islamic extremists to Afhanistan. Egypt released Islamic Jihad founder Dr Zawahiri and his followers.

Gorbachov Orders Soviet Withdrawal

In 1987 when Gorbachov came to power, the Soviet Union was on the brink of economic collapse. Believing he could still save it through political reform, Gorby quickly commenced Soviet troop withdrawal from Afghanistan. He also reached out to the Bush senior administration to help install a stable government in Kabul. He warned that failure to do so would allow the Mujahideen to install an Islamic dictatorship. The neoconservatives who ran the Pentagon and State Department refused. With Pakistani support, the Mujahideen (renamed the Taliban) took control of Afghanistan and installed a brutal fundamentalist regime.

Both the neoconservatives and the Taliban/Mujahideen would claim sole credit for victory over the Soviets in Afghanistan. Both groups (and Zbigniew Brzezinski) would also credit US intervention in Afghanistan for the demise of the Soviet Union. In reality the USSR collapsed due to gross economic mismanagement and internal decay.

The Split Between Azzam and Zawahiri

Following the Soviet withdrawal, a major rift occurred between Zawahiri and Azzam. As it turned out, torture also radicalized Zawahiri. Who now proclaimed that politicians who were in bed with the Americans – and their civilian supporters – were legitimate targets for assassination.

Azzam, in contrast, compelled Islamic freedom fighters to swear an oath not to kill innocent civilians. Osama Bin Laden, former deputy to Azzam, joined forces with Zawahiri shortly before the latter’s assassination in 1989.

By the early nineties, powerful movements the Islamic Jihad (and related groups) had built in Egypt and Algeria were on track to win national elections. Aided by the US and France, the Algerian military launched a coup and cancelled the Algerian elections. Egypt, in turn, banned the Muslim Brotherhood and arrested and tortured their leadership.

Islamic Jihad responded by attempting to launch violent jihad in both countries. Owing to their failure to attract a mass following, in May 1998 Zawahuri and Bin Laden would announce a new strategy: taking jihad to their real enemies: the US and Israel.

Meanwhile Back in Washington

Following the fall of the Soviet Union, the neoconservatives were more committed than ever to promoting the myth that the US was the sole force for good in a world of evil regimes. Fingering Saddam Hussein as the next satan to be overthrown, in 1990 they put immense pressure on Bush senior to overthrow the Iraqi government during the first Gulf War. Bush wisely took the sage advice of Pentagon advisers who warned that a full scale invasion of Iraq would result in a hopeless quagmire.

Mainstream Republicans Back Clinton

In 1992, mainstream Republicans, frightened by the religious fundamentalism that had overtaken the Republican Party, voted for Clinton in droves. The neocons, in turn, latched onto Clinton as the new evil. They began a vicious propaganda campaign against him, spearheaded by the conservative American Spectator. The campaign widely disseminated spurious allegations that the Clintons had committed financial fraud in Whitewater*, murdered their friend Vince Foster and participated in drug smuggling at the Mena Airport in Arkansas.**

Under immense pressure, Clinton agreed to appoint Kenneth Starr as special prosecutor to investigate these allegations. Starr couldn’t find any evidence of Clinton wrongdoing until he stumbled onto the President’s affair with Monica Lewinsky.

Following their failure to impeach Clinton, the neocons became as marginalized in the US as Bin Laden, Zawahiri and their ragtag followers in the Arab world.

All this would change with 9-11, which would propel both the Islamists and the neocons.

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*The Whitewater controversy involved a questionable real estate deal Clinton engaged in while he was attorney general of Arkansas. The Whitewater investigations would result in criminal convictions for several of Clinton’s associates. Although there was insufficient evidence to file criminal charges against the President, his conduct was clearly unethical: see Whitewater Scandal

**While there’s no evidence Governor Clinton was directly involved in cocaine smuggling, he was unresponsive to strong grassroots demand that he investigate the CIA’a drug-gun smuggling operation at the Mena Airport – and to Ross Perot’s (presidential candidate in 1992 and 1996) request that Clinton back the Internal Revenue’s investigation of Menta.

Ayn Rand, Alan Greenapan and the 2008 Crash

I’ve just discovered another exciting series of documentaries by Adam Curtis

All Watched Over By Machines of Loving Grace*

Adam Curtis

BBC (2011)

Part I

Film Review

Despite its deceptive title, this BBC documentary is about Ayn Rand and her immense influence over Silicon Valley and Rand devotee Alan Greenspan.

Prior to seeing the film, I had no idea about the cult following Rand inspired in the computer geniuses who flocked to Silicon Valley in the late sixties. Believing they could create a new kind of democracy by combining Rand’s radical individualism with computer technology, they set up Ayn Rand reading groups and named their children after her. They were convinced that linking computers in vast self-regulated networks would do away with the need for politicians and authoritarian hierarchies. However instead of decentralizing power, as they envisioned, the computer revolution only further concentrated the power of wealthy elites.

Rand called her underlying philosophy “objectivism” and disseminated it through her novels and a close-knit group of devotees. It was a philosophy of selfishness. She believed it was in the best interest of humanity for everyone to pursue their own rational self interest, unimpeded by religion or morality. She maintained that altruism was especially destructive, as it interfered with happiness and freedom.

Rand Devotee Alan Greenspan

Former Federal Reserve chair Alan Greenspan was an early member of Rand’s Collective, the small select group that met weekly to hear chapters of her newest novel. He married a fellow Collective member and remained fiercely loyal to Rand even after her sexual jealousy broke up the group.

After cunningly convincing one of her strongest supporters to follow his own self-interest by having an affair with her, she somehow persuaded his wife (also a Collective member) to commit the sin of altruism by agreeing to it. When he continued to follow his own self interest by becoming romantically involved with a younger woman, Rand brutally attacked him (verbally and physically) and ordered him out of the Collective.

The Most Powerful Man in the World

After becoming Federal Reserve chairman in 1987, Greenspan became the most powerful man in the world.** In 1993, he somehow persuade the newly elected Bill Clinton to cut taxes instead of restoring the social programs Reagan and Bush had cut (as he promised during his campaign). Greenpan argued this would cause markets to boom, enabling Clinton to repay the sizable federal debt he inherited from Reagan and Bush.

So Clinton cut social programs even further. Markets boomed, as Greenspan predicted, but not because of tax cuts. The real cause was an enormous credit bubble by massive Wall Street lending to unstable Southeast Asian markets. All the Wall Street banks erroneously believed that feedback loops in their computer networks would protect them by allowing them to hedge (bet against) their risky loans.

Greenspan Recognizes His Error

By 1996, even Greenspan could see that productivity wasn’t increasing despite the massive increase in profits. He tried to warn Congress that stocks were overvalued in his December 1996 “rational exuberance” speech.*** The corporate media crucified him and he recanted, acknowledging that computers might be increasing productivity he ways he couldn’t decipher.

Robert Rubin Launches Indonesian Coup

The credit bubble Wall Street created in Southeast Asia led Thailand, Malaysia, South Korea and Indonesia built thousands of homes and commercial buildings that couldn’t be sold. In 1997, the bubble burst. Clinton, who was busy being impeached over Monica Lewinsky, was powerless to act. He allowed his Treasury Secretary, former Goldman Sachs executive Robert Rubin, to take over his Southeast Asia policy. Rubin, in turn, organized an attempted coup against Indonesian president Suharto for refusing to accept an IMF bailout.

Faced with massive civil unrest, Suharto eventually accepted the bailout and the structural adjustment conditions the IMF imposed (massive cuts in government spending on food subsidies and other social services, throwing millions of people out of worked). As typically happens, the IMF bailouts went to pay off the Wall Street banks. While the IMF-imposed austerity cuts (helped along by currency trader George Soros) led the currencies of all four countries to collapse. Residents of Thailand, Malaysia, South Korea and Indonesia were plunged into abject poverty comparable to the Great Depression of the 1930s.

China Escapes from Wall Street Domination

The most important outgrowth of the 1997-98 Southeast Asia economic crisis was a major shift in Chinese economic policy. Determined to remove themselves from Wall Street domination, China’s leaders devalued their currency, flooded the US with cheap consumer goods and used their profits to finance growing US indebtedness by buying US Treasury bonds.

In the mean time, Greenspan cut interest rates to near zero percent and the US was flooded with trillions of dollars of cheap (borrowed) money. Wall Street, in turn, recycled these funds as subprime loans to the third world population in American ghettos.

Again believing computers would keep them safe, Wall Street banks created the largest credit bubble in history. When it burst in 2008 Wall Street, as usual, got bailed out. This time Americans paid for the bailout, as they were plunged into widereaching soul-crunching misery.

The documentary features fascinating archival interviews with Rand and members of her Collective.

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* Title of 1967 monograph distributed free by California cybernetics enthusiast Richard Brautigan. Available for $400 from Abe Books

**On reflection, it seems a great pity Rand didn’t have the affair with Greenspan. We could have been spared the 2008 economic crash.

***”How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions as they have in Japan over the past decade?”