[lbo-talk] Developments in the world economy and the concept offoreign ownership

Yoshie Furuhashi critical.montages at gmail.com
Sun May 27 19:34:08 PDT 2007


On 5/27/07, Doug Henwood <dhenwood at panix.com> wrote:
>
> On May 27, 2007, at 5:56 PM, Yoshie Furuhashi wrote:
>
> > Why don't business people stop the White House from using military
> > methods, then?
>
> Stopping them is a different thing from starting them. I think a lot
> of business types defer to the state except on things that matter to
> them directly.
>
> As for the rest of what I said - the City opposed British entry into
> WW I, New York capitalists wanted to appease the South in the 1850s,
> there's little evidence the oil industry pushed for the invasion of
> Iraq - what part is untrue? The first two instances are historical
> fact. The third is based only on a lack of evidence - but do you know
> of anything to the contrary?

A lot of politicians, especially those who capture the highest offices, are themselves members of the ruling class, first of all. You need to explain why those members of the ruling class who become the power elite, especially those who directly run the executive branch, are inevitably committed to imperialism and frequently resort to military means. Moreover, those who refuse to commit themselves to using all available means are practically excluded from making serious bids for the highest offices by donors, the corporate media, and other members of the ruling class and power elite. If the ruling class are pacific, why do they exclude pacifists? Unless you explain imperialism by answering questions like these, you end up merely leading people to think like James Petras:

* E.g.

<http://www.zmag.org/content/print_article.cfm?itemID=12607&sectionID=1> ZNet | Activism

Debating the Primacy of The Pro-Israel Lobby THE DEBATE BETWEEN JAMES PETRAS AND NORMAN FINKELSTEIN by James Petras and Norman Finkelstein; INTIFADA ; April 18, 2007

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James Petras: Well, I think I would probably argue that the pro-Israel lobby, the Zionist Lobby, is the dominant factor in shaping US policy in the Middle East, particularly in the most recent period. And I think one has to look at this beyond AIPAC. I mean, we have to look a whole string of pro-Zionist think tanks from the American Enterprise Institute on down, and then we have to look at a whole power configuration, which not only involves AIPAC, but also the President of the Major American Jewish Organizations, which number 52. We have to look at individuals occupying crucial positions in the government, as we had recently with Elliott Abrams and Paul Wolfowitz, Douglas Feith and others. We have to look at the army of op-ed writers who have access to the major newspapers. We have to look at the super-rich contributors to the Democratic Party, Media moguls etc. And I think this, together with the leverage in Congress and in the Executive, is the decisive factor in shaping US foreign policy in the Middle East. And I want to emphasize that.

Hagit Borer: James, just to stop you and maybe we can also have some kind of an opening statement from Norman.

Norman Finkelstein: Well, first of all, thank you for having me. I would say that I situate myself on the spectrum somewhere towards the middle. I don't think it is just the Lobby which determines the US relationship with Israel. And I don't think it is just US interests which determine the US relationship with Israel. I think that you have to look at the broad picture and then you have to look at the local picture. On the broad picture, that is to say, US policy in the Middle East generally speaking, the historical connection between the US and Israel has been based on the useful services that Israel has performed for the United States in the region as a whole. And that became most prominent in June 1967, when Israel knocked out the main challenge, or potential challenge, to US dominance in the region, namely Abdul Nasser of Egypt. So, on the broad question of the US-Israel relationship that is the regional relationship, I think it is correct to say that the alliance has been based fundamentally on services rendered. On the other hand, it is very clear from looking at the documentary record, that the US was euphoric when Israel knocked out Egypt – or knocked out Nasser and Nasserism, it is also clear from looking at the documentary record, that the United States has never had any big stake in trying to maintain Israel's control over the territories it conquered in the June 1967 war, that is to say, the Egyptian Sinai Peninsula, the Syrian Golan Heights and, at that time, the Jordanian West Bank and Jerusalem. The US clearly had no stake in it and already from July 1967, wanted to apply pressures on Israel to commit itself from fully withdrawing. It was pretty obvious, if you look at the record again, that Israel, at that point, was able to bring to bear the Lobby. In 1967-68 it meant principally the forthcoming Presidential election and the Jewish vote. It was to bring to bear the power of the Jewish vote to resist efforts to withdraw. And since '67, the Lobby has been very effective, I think, in raising the threshold before the US is willing to act and force an Israeli withdrawal pretty much like the withdrawal it forced on Indonesia in 2000 to leave Timor. The two occupations begin in roughly the same period: in 1974, Indonesia invades Timor with the US green light and in 1967, Israel conquers the West Bank, Gaza and so forth with the US green light. And so the obvious question is: Both occupations endured for a long period. The Indonesian occupation was infinitely more destructive, killing more than one-third of the East Timorese population. But it is true to say come 2000 the US does order Indonesia to withdraw its troops. Why hasn't it done so in the case of the Israel-Palestine occupation? And there I think its true to say, 'It's the Lobby'.

Hagit Borer: I have a feeling that one of the things we really need to start with when we try to address this issue is: What is it that we recognize, if we could recognize, on more or less a global level, as 'American Interests'? Such that we can say that they have so some degree systematically characterized different US Administrations. This is because it seems to me that it would be very difficult to evaluate to what extent policies that are going on with respect to Israel aren't compatible with American interests, if we don't talk a little bit about what we perceive to be 'American interests'. So James, would you like to talk about that a little bit?

James Petras: Yes, I would. As a matter of fact, on that question, we have to be clear if we are talking about the US government and corporate interests in the Middle East, in particular, or if we are talking about what should be US interests.

Hagit Borer: Let's talk about what they are…Let's say, what the aims of various administrations are as opposed to what is in the best interest of either the American or the Israeli people, which may be very different.

James Petras: Very good. On that count, I think it is very clear that US policy is directed toward empire-building, extending its political, economic and military control over the world as a whole and, in particular, in the Middle East. And it pursues that policy, either through military means or through market mechanisms, such as the expansion of corporations, the capture of pliant client regimes, etc. And if we look at the Middle East, in particular, the US has been very successful in securing agreements with most of the oil-producing countries, except Iraq and Iran, and even there it is mainly because of its own rejection of relations with both those countries. US oil companies have done extremely well through non-military means. They have expanded their commercial ties- Goldman Sachs has just signed a big agreement with the biggest Saudi bank. Britain is organizing a secondary market in Islamic bonds. Wall Street is very interested in that. None of the oil companies supported a war in Iraq. And it is part of the rubbish that has been peddled – that the war was about oil. The oil companies were doing fabulously before the war and were very nervous about getting involved in a war. This, I think, leads us to the whole question of 'why then' if it was prejudicial to the major US economic interests. As we can see, there were many US military people who were opposed to going into Iraq because they felt it would prejudice the US overall military capacities to defend the Empire – just like the war in Viet Nam prejudiced the capacity of the US to intervene in Central America against the Sandinistas, against the overthrow of the Shah, etc. So from the point of view of global imperial interests, the war in Iraq was certainly not on the behest of the oil companies. I have looked at all the documents, I've done interviews with oil companies, I've looked at their publications for the five years in the run-up to the war and there is absolutely no evidence. On the contrary, if you pursue research on the various members of the Zionist power configuration in the United States, which I think is a conceptually more correct way of talking about this, rather than 'the Lobby', you will find that people of dubious loyalties, like Paul Wolfowitz, Douglas Feith, Richard Perle and Elliott Abrams – the felon, that had an agenda of furthering Israel's interests.

Hagit Borer: James, maybe we should go on with this. Basically if I understand what your are saying, your are suggesting that up to the point of getting involved militarily with Iraq, you would characterize American policies in the Middle East – you know, the Lobby notwithstanding, as extremely successful. So, I am just wondering…

James Petras: It's what we call 'market imperialism'.

Hagit Borer: Yes. Norman, do you want to comment on this?

Norman Finkelstein: Well. You have to look at the interests at many different levels. And unfortunately it becomes murky and complicated, where one would prefer a simple picture, I don't think it is all that simple when you try to figure it out. Number one, you have to look at the interests in terms of who is defining them. And, I agree, I think it is fairly obvious certainly to your listeners that there are different interests that are being defined by corporate power, or are being defined democratically by the desires and choices of ordinary people in any democratic system. So, lets limit ourselves to the first – the question of the corporate interests, since obviously they are playing the dominant role in determining US policy. Or it should be obvious, not that it always is.

Hagit Borer: Let's assume it is fairly obvious.

Norman Finkelstein: It's playing the determinant role. Then you have to look at 'how do they conceive the best way to preserve and expand their interests.' Now the way they perceive it may seem to a person like you and me to be irrational. It's that they are pursuing policies which are actually hurting them. But the fact that they may seem irrational to us, does not mean that that is the way they perceive these as the best way to preserve their interests. So you take the concrete case at hand. It may be the case that it was irrational for the US to go into Iraq because there are other ways to control the oil, or as some people have argued, that the market mechanisms are such that, on a world scale, you no longer need to control a natural resource in order to make sure you get the lowest price or make sure it is flowing at the lowest price. Control isn't all that important anymore in the modern world. It is not like when Lenin was writing his Imperialism. Now that may be rationally correct and maybe there is a good argument for making it. But that doesn't mean that those in power aren't making decisions to further their own interests, which may seem irrational to us. In the case of Iraq, if you look concretely at what happens: Number 1 – There is no evidence, whatsoever, that people like Wolfowitz or the others were trying to further an Israeli agenda.

Hagit Borer: Let me interrupt. What would be the Israeli agenda, if there was one?

Norman Finkelstein: There is an Israeli agenda, and I am not disputing it. The Israeli agenda is basically the following: Israel does not care which country you smash up in the Middle East, just so long as, every few years and, sometimes, every few months you smash up this or that Arab country to send a lesson or to transmit the message to the Middle East that we are in charge and whenever you get out of line we are going to take out the 'big club' and break your skull. Now, it happens that in the late 1990's that Israel would have preferred the skull that was cracked would have been the Iranian one. There was no evidence that Iraq was upper most on the Israeli agenda. In fact, all of this talk about the famous document that was written up by these neo-cons to attack Iraq – that famous document – was handed to Netanyahu when he came to office to try convince him to put Iraq at the top of the agenda. It's not as if Israel passed that document to the neo-cons, who then plotted to get the US government to attack Iraq. It was the opposite. Israel would have preferred to attack Iran. However, once those in our government, maybe for misguided reasons for all I know, decided to fasten on to Iraq – that is to attack Iraq – Israel was of course 'gung ho' because Israel is always 'gung ho' about smashing up this or that Arab country. That has always been its policy for the last hundred years – since the beginning of Zionism. The most common place, the cliché of Israeli power is 'Arabs only understand the language of force'. So, when the US embarked on its campaign against Iraq, the Israelis were gleeful – but they are always gleeful. It doesn't mean that people like Wolfowitz, let alone people like Cheney, are trying to serve an Israeli agenda. There is no evidence for claims like that. Its pure speculation based on things like ethnicity.

Lets take a simple example, that, I'll call him James, I don't usually call people by their first names, but Jim Petras mentioned…Let's take the case of Elliott Abrams. These are interesting cases. Elliott Abrams is the son-in-law of Norman Podhoretz. And Norman Podhoretz was the first big neo-conservative supporter of Israel, the editor of Commentary , the magazine. But if you look at people like Podhoretz, you look at their history, I'll take a book which I am sure Jim is familiar with, in 1967 Podhoretz publishes his famous memoir called Making It. It's how he succeeded and made it in American life. He was a young man and the editor of Commentary Magazine. You read that book, his celebrated memoir written two months before the June 1967 war, there is exactly one half of one sentence in the whole book on Israel. People like Podhoretz, Midge Decter, all the neo-cons…I have gone through the whole literature on the topic and have read it quite carefully. Before June 1967, they didn't give a 'hoot' about Israel. Israel never comes up in any of their memoirs, in any of the histories of the period. They become pro-Israel when Israel is useful to them in their pursuit of power and fortune in the United States. Elliott Abrams is as committed to Israel as his father-in-law, Norman Podhoretz, was committed to Israel: When it is convenient and when it is useful. This idea of trying to serve an Israeli agenda, especially coming from somebody as sophisticated as Jim Petras, strikes me as absurd. He knows as well as I do that power…

Hagit Borer: Lets me just interrupt to let James…

James Petras: Its very strange that one says Wolfowitz was not influenced by the Israeli agenda when he was caught passing documents to Israel in the 1980's. And Douglas Feith lost his security clearance for handing documents to Israel. Elliott Abrams has written a book calling for maintaining the 'purity' of the Jewish race…

Norman Finkelstein: I know. They write that crap…and you believe them? Jim, do you think they care…?

James Petras: Its not a question of believing them, it's a question of looking at the documentary evidence of uncritical, support for Israel in all of its policies - A position that is taken by the Presidents of the Major American Jewish Organizations. They give unconditional support!

Hagit Borer: Let me perhaps interject here a little bit. I think that there a couple of things. One is…I am wondering, for instance, I don't know whether you would agree, James, with the particular Israeli interest that Norman had identified with respect to the invasion of Iraq. But assuming that you would agree that the Israeli interests is precisely that, namely to smash some Arab country mainly because it is a 'good idea'…

James Petras: I think that's very superficial…

Hagit Borer: The question is also…has it been in American interests? So we have seen America go after countries, which are sometimes, in terms of their power, are otherwise really quite negligible – just so as to make a point that anybody who dares to stand up to American power is just a bad example and needs to be smashed…

Norman Finkelstein: I totally agree with that…

James Petras: Israel was running guns to Iran as late as 1987 during the infamous Iran-Contra Scandal…To say that they weren't interested in destroying Iraq as a challenge to Israel's hegemony and Iraq's support for the Palestinians, particularly funding the families of assassinated Palestinian leaders…that's absurd. And I think …

Norman Finkelstein: Oh look…

Hagit Borer: Could I stop you at this particular point…because we need to take a station break…

James Petras: I want to answer your question…

Hagit Borer: We will come back to it…At this point I think we should try to shift the topic a little bit and…

James Petras: Let me finish my last comment. I think when the Pentagon offices are flooded, like a crowded bordello on Saturday night, with Israeli intelligence officers, crowding out even members of their own Pentagon staff – full of Mossad, full of Israeli generals, in the making of Iraq policy, I don't think you can say that they are 'just any old Pentagon officials'. I think you can't dismiss the fact that Feith, Wolfowitz, Elliott Abrams have a lifetime commitment to putting Israel's interests as their prime consideration in the Middle East. I think it is absurd to think that somehow they just happen to be right-wing policy makers that happen to support a militarist policy. Wolfowitz designed the program. Feith put together the Office of Special Plans, the policy board that fabricated the information for the Iraq war. They were constantly consulting on a day-day, hour-to-hour basis with the Israeli government. This has absolutely been documented a hundred times and I think it is impossible to deny this and say 'Well, you can't deduce policy from ethnic affiliations." Yes, you can! When that ethnic group puts forward a position that puts the primacy of a foreign government at the center of their foreign policy and prejudices the lives of thousands of Americans…its economic interests in the area…then it's absurd to say, 'These are a bunch of irrational policy-makers.'

. . . . . . . . . . . . . . . . . . . .

Norman Finkelstein: I've said in my remarks at the beginning that there is an overlapping of interests in a regional level for reasons for which, in part you suggested earlier. You said that the United States often goes after weak regimes as a kind of demonstration effect of its power and Israel also has a desire for demonstrating its power. Often there is an overlapping, or confluence, of interests. I think, however, it's also true to say on the specific question on the occupation – there is a conflict of interests. Were there not a Lobby, it's quite likely that the US would have exerted the kinds of pressures needed to force an Israeli withdrawal. On questions like Iraq and Iran, I don't see any evidence whatsoever, of its being driven by cloak in dagger type of operations in the Pentagon. These operations, which Jim mentions, are so trivial – next to the very high level planning that goes on between the United States and Israel, conscious, legal high-level planning on a daily basis. High level planning and high level coordination. You don't have to conjure up 'cloak and dagger' tales, many of them true, going on inside the Pentagon, in order to demonstrate there is collusion, planning and coordination between the United States and Israel. The question is not whether that goes on, the question is 'whose interests are being served by it?' There is this notion that somehow they are managing to distort and deform US policy in a crucial region, on a crucial resource, doesn't, in my opinion, have any basis in fact. It defies any kind of reason or any kind of common sense reasoning – especially coming from, in my youth, I used to be a student of James Petras at SUNY Binghamton from 1971-74 and he used to be a Marxist and at that time he would tell you how people in power act from interests, which spring from …a basis in which they are the main beneficiaries.

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Hosted and produced by Hagit Borer for the SWANA (South and West Asia and North Africa) Collective of KPFK -- Yoshie



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