The US Occupation: Japan’s Post War Miracle

Princes of the Yen: Central Banks and the Transformation of the Economy

Directed by Michael Oswald (2014)

Film Review

Based on Richard Werner’s book by the same name, this film examines the economic forces responsible for the Japan’s post war economic miracle. The US occupation of Japan (1945-1952) was characterized by heavy censorship and US control of all political appointments, including central bank governors.

Mindful of the peasant uprising that led to revolution in China, US occupiers immediately implemented major land reform, breaking up large estates to hand the land over to their tenants. In 1951, under US oversight, Japan declared an amnesty for all war criminals. Thus while Nazi war criminals were being tried and hung at Nuremberg (or secretly smuggled into the US or Latin America), Japanese war criminals were forming (with major CIA support) the Liberal Democratic Party, which would rule Japan continuously until 1993.

Because they mainly held war bonds or loans to industries that had been destroyed, private Japanese banks had collapsed. Under US supervision, the Japanese central bank purchased these worthless assets in exchange for bank reserve (a process that would come to be known as quantitative easing).

They then set up a system known as “window guidance” to guarantee the rapid credit creation necessary for economic recovery. Under window guidance, the Bank of Japan issued quarterly directives to each bank on the amount of credit they needed to create for specific industries. The goal was to maintain a war economy with a focus on consumer goods instead of weapons. Growth skyrocketed, producing rapid income recovery with reasonable income equality for Japanese citizens.

By the 1970s, Japan was the world’s second largest economy and held major investments in the US and other western countries. In addition to owning 75% of US treasury bonds, in 1986 Japanese investors owned Columbia Pictures, Rockefeller Center and Pebble Beach Golf Course near Monterey, California.

All this changed in the 1990s, when the Bank of Japan colluded with the IMF, World Bank and Goldman Sachs for the right to be independent of the Japanese government like western central banks. As part of this scheme, which would hand Japan’s central bank over to  western speculators, the BOJ deliberately (according to Werner) created a massive asset bubble which collapsed in the mid-1990s. Between 1991 and 1996, 212,000 Japanese companies went bankrupt, stocks and land lost 80% of their value and over 5 million Japanese became unemployed.

The Japanese economy continues to be in recession to the present day.

The New Women’s Movement to Reclaim the Commons

Re-enchanting the World: Feminism and the Politics of the Commons

by Sylvia Federici

PM Press (2019)

Book Review

This book is a collection of essays about capitalism’s continuing seizure and privatization of the “commons” and growing women’s movements in Africa, Latin America and Asia to resist enclosure and reclaim privatized land.

Federici divides her book into two parts. The Part One (“On the New Enclosures”) essays describe the original 15-17th century enclosure laws that drove my European ancestors off common lands they had farmed communally for more than 1,000 years. This process (which Marx refers to as “primitive accumulation”) laid the groundwork for capitalism in two important ways: 1) it allowed the accumulation of capital (ie land) to finance the industrial revolution and 2) it forced landless peasants into factories.

Part One goes on to explore how the World Bank and IMF continues to expel drive third world peoples from their communal lands, creating the largest mass migration of refugees in history. I was quite surprised to learn that communal land ownership survives intact throughout much of Africa and that women produce 80% of the continent’s food via subsistence farming.

This section also features excellent essays on the role the Chinese government has played in driving their peasant population off their communal lands – and the role of microcredit in inflicting debt on rural populations that were previously immune to the forces of globalization.

In Part Two “On the Commons,” Federici details numerous examples of third world women’s movements that are reclaiming the commons via such strategies as squatting on privatized land, urban gardening (growing crops on privatized land), time banks, savings pools, and programs to collectively undertake shopping, cooking and care of street children.

This section also offers an excellent critique of Marx’s failure to acknowledge the essential role under capitalism of the unpaid work of women and colonized peoples – nor of the degradation of the “commons” known as the environment.

The book’s final essay warns of the seductive nature of Internet technology and role it plays in distracting people from genuine face-to-face interaction that brings about real change.

How to Profit from Environmental Destruction

Pricing the Planet Part 2

Al Jaceera (2018)

Film Review

Part 2 of Pricing the Planet is even more disgusting than Part 1. It concerns the “green conferences” organized by oil, chemical and mining companies to promote ways they can invest in “credits” to mitigate their activities that degrade the environment.

All the industries that attended a recent “green conference” continue to lobby heavily against government regulation to curb the environmental damage they cause. However now that they see an opportunity to profit from carbon and species trading they’re suddenly spouting off about the future of our planet.

The documentary shows footage of Dow Chemical and Nestle executives at a recent green conference. Dow has one of the worst reputations for environmental degradation. Dow produced Agent Orange, responsible for cancer and birth defects in thousands of Vietnam veterans and Vietnamese civilians and their offspring. They also own the subsidiary responsible for the chemical factory that exploded in Bhopal India, poisoning thousands. Nestle is notorious for depleting fresh water all over the planet, which they sell back to us as bottled water.

Unsurprisingly the World Bank supports corporations who buy and sell the right to destroy the environment by selling Green Bonds (which corporations use to mitigate their environmentally harmful activities). Carbon and endangered species trading are also strongly supported by the United Nations.

The high point of the film is a vignette featuring Indian environmentalist Vendana Shiva explaining how financialization always leads to degradation. She further states, “Wherever a price is placed on nature, nature has been destroyed.”

She maintains the continual destruction of the environment in the name of economic growth is a sickness in the human mind.

The documentary can be viewed free at Pricing the Planet Part 2

Chevron vs the Amazon

Chevron vs the Amazon

Abbey Martin (2016)

Film Review

 

Chevron vs the Amazon is an Abbey Martin documentary about Texaco-Chevron’s deliberate dumping of oil and toxic waste in Ecuador’s Amazon rain forest and the vicious dirty tricks they have engaged in to avoid responsibility for cleaning it up.

Texas began drilling for oil in Ecuador in 1964, under a US-installed dictatorship that agreed not to regulate their activities. The amount of oil they spilled into the Amazon was 1700 times the size of the 1989 Exxon Valdez oil spill and 140 times that of BP’s 2010 Deepwater Horizon spill. Indigenous groups filed suit for the extensive damage to their water, health and livelihoods in 1993, a year after Texaco abandoned their Ecuadoran well sites. Texaco settled this first suit by agreeing to a phony remediation scheme that never happened.

Part 1 consists of great footage of the vast amount of oil remaining in Ecuador’s Amazon rain forest and interviews with indigenous Ecuadorans whose entire families have been devastated by the health effects (cancer, leukemia, rashes, miscarriages, birth defects) of the contaminated water they are forced to drink.

Part 2 provides background to the second class action lawsuit brought against Texaco by 30,000 indigenous residents – the largest environmental lawsuit in history. Texaco has a really ugly human rights history, beginning with the bankrolling of Spain’s fascist dictator Francisco Franco and illegal provision of oil, financial support and secret intelligence to Hitler and Mussolini. After losing a series of punitive lawsuits over its environmental crimes, they were forced to merge with Chevron in 2000.

The latter has its own history of human rights and environmental crimes in Nigeria, Kazakhstan, Chad, Cameroons, Equatorial Guinea and Richmond California.

After fighting the suit for eight years in US courts, Chevron eventually won a court ruling that that the suit had to be tried in Ecuador instead. When it was re-filed in Ecuador, Chevron engaged in blackmail, extortion, bribery, illegal surveillance, “judicial terrorism” (bringing 30 lawsuits against oil spill victims for “racketeering”), and “financial terrorism” (suing all the non-profit groups supporting the indigenous plaintiffs).

In 2011 the Ecuadoran plaintiffs ultimately won their suit for $9.6 billion – a ruling confirmed by Ecuador’s supreme court. Instead of paying up, Chevron forced them to file suit in various countries where Chevron has financial assents (including Canada, Brazil and Argentina). A 2016 ruling in US court makes it illegal for Ecuador to file a claim against Chevron’s US holdings.

Part 3 explores the long history of US economic colonization in Latin America (on behalf of Wall Street corporations) via direct military intervention, the installation of puppet dictators and the paramilitary death squad terrorism carried out through Henry Kissinger’s notorious Operation Condor. All this has changed with the 2007 election of Rafael Correa (who granted Julian Assange asylum in London’s Ecuadoran embassy).

At present Chevron seek to perpetuate their economic imperialism via a secret World Bank tribunal in the Hague. There 20 hand picked corporate “judges” have found that the successful lawsuit against Chevron retroactively violates of the 1997 US-Ecuador Bilateral Investment Treaty (Texaco-Chevron left Ecuador in 1992) and ordered Ecuador to pay Chevron $112 million in damages.

2017 update: In March 2017 lawyers representing the Ecuadoran plaintiffs have petitioned the US Supreme Court to overturn the flawed (by bribery and corruption) racketeering conviction  against the Ecuadoran plaintiffs and their lawyers. (See Chevron in Ecuador )

How Putin Outwitted the Russian Oligarchs

The Rise and Fall of the Russian Oligarchs

Directed by Alexander Gentelev (2006)

Film Review

The Rise and Fall of the Russian Oligarchs focuses on the scandalous period after the collapse of the Soviet Union, in which 100 opportunist oligarchs destroyed the economy of a relatively wealthy country (with the help of the CIA, USAID, the IMF and the World Bank) by seizing $20 billion of assets for roughly a billion dollars. The admitted goal of these Russian oligarchs (and their CIA supporters) was to privatize as many industries as possible behind the scenes before the Communist majority in the Russian parliament could consolidate power and stop them. The documentary’s overarching theme concerns Putin’s rise to power in 1999, which is credited for saving the Russian economy via his shrewd confrontation and defeat of these oligarchs.

This Russian-made documentary focuses on three specific oligarchs: Mikhail Chernoy, who now lives in exile in Israel; Theodore Gusinski, who now lives in exile in Spain, and Boris Beresovksy, who now lives in exile in London. It’s divided into two parts.

Part 1

Part 1 describes how these men used privatization schemes introduce by the last Soviet president Mikhail Gorbachev (under Perestroika – 1985-1991) to acquire a variety of Russian assets for pennies on the dollar. With the collapse of the Soviet Union in 1991, many state-owned factories were threatened with closure, the Russian government initially privatized them through an ill-conceived voucher scheme. Ownership in the factories was broken up into millions of shares in the form of vouchers distributed to all Russian citizens. Because they had no other source of income, many were forced to sell their vouchers cheaply for food. Others were tricked into “investing” them in phoney investment schemes as their owners sold on their hoard of vouchers and pocketed the proceeds.

Chernoy wound up with hundreds of thousands of these vouchers, which he used to buy up Russia’s aluminum industry.

Using western financing, Gusinski would form Russia’s first commercial TV network in 1993. In 1994 Berezovsky (again with the help of western financing) would buy Russian state TV for a few million dollars. Joining with other oligarchs, they skillfully used their media monopoly to promote their privatization agenda.

Part 1 also covers the 1991 attempted coup against Gorbachev (a desperate attempt by the Communists to reverse rapid privatization); Yeltsin’s successful (CIA-backed) coup in 1993, in which he used the military to attack the Russian parliament, effectively dissolving parliament and the constitutional court; and the vast human misery caused by the “shock therapy” Wall Street imposed Russia as they looted their economy. This, in turn, would lead to escalating mass protests demanding a return of the Communists to power.

Part 2

Part 2 focuses on the oligarch (and CIA) financed and controlled election of Boris Yeltsin in 1996 – as well as the direct role the oligarchs assumed in government following Yeltsin’s victory against his more popular Communist opponent.

The Russian economy reached breaking point in 1998. By then, the Russian government had lost so main state-owned industries (75%) that it could no longer pay its debts and Russian banks froze depositors assets.

This, along with Yeltsin’s failing health, would lead to a political crisis, resulting in Vladimir Putin’s appointment as acting president initially supported by the oligarchs – in 1999. Following Putin’s election in 2000, he quickly turned on oligarch supporters, who expected to control his government as they had Yeltsin’s.

Then, as now, he excelled at media manipulation, capitalizing on popular fear of Chechen terrorism to heighten his popularity. He also shrewdly confronted individual oligarchs for tax evasion and other financial crimes during televised cabinet meetings.

This was followed up by security raids and harassment, arrest – and in some cases imprisonment – to encourage numerous oligarchs to relinquish their ill-gotten shares to state control.

In this way, Putin essentially ended Wall Street’s wholesale exploitation of the Russian economy and the Russian people – and Wall Street and the US military-intelligence complex have never forgiven him for it.

The documentary’s main weakness is its failure to explore the major role Wall Street and US intelligence played in the destruction of the Russian economy between 1991-2000. Good background on this at the following links:

The Harvard Boys do Russia

US Meddling in 1996 Russian Elections in Support of Boris Yeltsin

USA Russia

The Plunder of Russia in the 1990s

The World Bank’s Ongoing Battle to Drive Africans Off Their Land

The Honey at the Top

Directed by Dean Puckett (2016)

Film Review

The Honey at the top is about the 30-year battle the indigenous Sengwer are waging against the World Bank and the corrupt Kenya Forest Service (KFS). The latter are trying to evict the Sengwer from their ancestral Embobut Forest. The Kenyan government seeks to use the forest in a lucrative carbon trading scheme.

Although the Kenyan courts have ordered the KFS to desist from harassing Sengwer families, the former continues to launch periodic raids in which they beat up women and the elderly, set fire to their homes and arrest entire families – demanding bribes for their release. The World Bank funds these KFS activities.

Both the World Bank and the KFS declined to be interviewed for this documentary.

Click the cc tab for English subtitles.

 

* Carbon trading is the scandal ridden scheme of buying and selling permits and credits to emit carbon dioxide. Despite being a central pillar of the EU’s efforts to slow climate change, there is no real evidence it has successfully reduced carbon emissions .

The Mythology of Science and Technology

Pandora’s Box: A Fable from the Age of Science

Directed by Adam Curtis (1992)

Film Review

Pandora’s Box is Curtis’s first documentary (at least that I can find on YouTube) about the history of perception management, mass indoctrination and collective thought control. His films, a treasure trove of the hidden history that is censored in our schools, offer a unique perspective on the role of government and media in manipulating the way we view ourselves and our relationship with society and the ruling elite.

First appearing on BBC television in 1992, the six-part series explores the collusion between engineers, corporate oligarchs and the public relations industry to hoodwink the industrialized world into believing science and technology would solve all the world’s problems. It was a process that granted a dangerous amount of power to pseudo-rational engineer/technocrats – who in many instances proved far less rational than the general population.

As Curtis demonstrates in Part 1, a parallel process occurred in the non-capitalist Soviet Union under Stalin.

Part 1 The Engineer’s Plot – concerns the powerful impetus to electrify and industrialize the Soviet Union after the 1917 Bolshevik Revolution. Lenin, who believed industrialization was vital to the success of Communism, was famous for the dictum: “Communism is Soviet power plus electrification.”

Part 2 To the Brink of Eternity – concerns the development of Game Theory at the Rand Corporation (a right wing think tank closely allied with the Pentagon and US intelligence) and whiz kids like Kennedy’s Secretary of Defense Robert McNamara who nearly led us into a global nuclear holocaust. Clips depicting McNamara’s use of Game Theory to manage the Vietnam War are particularly comical.

Part 3 The League of Gentleman – concerns the capture of British economic policy by Milton Friedman’s pseudo-scientific monetarism under Margaret Thatcher. This would result in the total decimation of Britain’s manufacturing base and skilled workforce (and economy).

Part 4 Goodbye Mrs Ant – concerns the glorification of the chemical industry after World War II, resulting in the total contamination of the environment (and our bloodstreams) with DDT and similar synthetic pesticides. Curtis also traces the backlash against this environmental destruction that started with Rachel Carson’s 1962 Silent Spring and culminated with the birth of the ecology movement at the University of Wisconsin in 1968.

Part 5 Black Power – concerns the destructive myth perpetuated by Wall Street and the World Bank that massive technology projects would magically solve the problem of third world poverty. Curtis specifically examines the massive Volvo damn project the World Bank funded for Ghana (and Kaiser Aluminum) in 1960. And how shameless exploitation by Kaiser (and the collapse in the world cocoa price) left the country worse off than ever.

Part 6 A is for Atom – concerns the massive snow job the nuclear power industry did on the US, British and Russian public in promoting nuclear energy as a totally safe and cheap form of virtually unlimited energy. According to Curtis, nuclear engineers knew as early as 1958 that nuclear power was far more expensive than other energy sources – and would require massive government subsidies. They also knew by the early sixties that standard safeguard features were unreliable in preventing nuclear accidents. When they pointed this out to the Atomic Energy Commission, the government bureaucrats decided too much money had been invested in nuclear power to admit they were wrong.