Hi, Karen and Keith, and everyone,

 

I suggested some time ago that the issue may not be when the soonest we can
leave is, but whether we will be allowed to leave. While the vast majority
of Iraqis want us out, those who are fighting the US (and UK, etc) presence
there can roughly be seen as falling into two categories: those who are
trying to expel us as quickly as possible, and those who want to keep us
bogged down there, reasoning that the longer they can keep us there, the
longer and deeper will be the erosion of US credibility and standing in the
area. Of these, there is a smaller group that quite cynically feels that
they are in a battle with the US globally, and that Iraq makes a perfect
battleground for them, as we keep re-supplying them with targets.  At some
point, maybe, the Americans will wake up and realize it is a losing battle -
a lost one, really - and then we will also realize that unless we handle
things very intelligently that our withdrawal may become a rout.

 

As we beat up on Bush, let us, to our embarrassment, recognize that we have
all had friends who asserted to us, a year ago, two years ago, three years
ago, that we 'couldn't' simply leave Iraq, having invaded the place. Of
course, they were flat out wrong and we knew it, and their inability to put
forward a credible scenario for our remaining was the sure tip-off that it
was an unsupported emotion that they were expressing, the fact is that that
sentiment emboldened the neocons and Bush appointees to rest comfortably on
the same argument (of which the phrase 'cut-and-run' was a tool). So when we
bash Bush, who surely deserves it, let us remember that he had a lot of help
in pursuing his folly, sadly.

 

I hope for the day when those who did not have the insight or courage to
say, "enough - out now" apologize for the deaths and destruction and loss of
resources that that mistake cost us and the people of Iraq.

 

I do not believe that it is simply good enough to say, as more and more of
the Bush supporters are now, 'The past is the past. What we have to do now
is figure what we are going to do in the future.'   Yes, that we do have to
figure out - though the neocons and groups like the Iraq Study Group will be
of no substantive help in doing so - AND we do have to learn from the many
Bush mistakes - AND we do owe the dead, the mutilated, and the impoverished
a deep and substantive apology.  In my opinion, a good way to begin the
apology is by recognizing the impenetrable hubris, callousness, and
ignorance that animated those who urged the invasion and occupation of Iraq.

 

Lawry

 

  _____  

From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Karen Watters Cole
Sent: Tuesday, December 05, 2006 4:54 PM
To: [email protected]
Subject: Re: [Futurework] Losing the war of words, too

 

Thanks for the information on what your media is reporting, Keith, and your
keen observations. I'll keep my eyes open to see if our mainstream media
show those convoy images or not. 

 

As for the Gates hearing today, his candor is portrayed as both stark and
refreshingly honest. One blogger I read listed the times that the White
House as declared that we are winning in Iraq in recent months, opposed to
Gates' "grown up" concession. What Gates has to do is establish credibility
as a tabula rasa and hope the alternate media and activists don't succeed in
showcasing his less than savory past or his business ties since leaving
public service. Even Sen. Kerry said in a forceful interview on Meet the
Press Sunday, designed to improve his image after failing as a joke teller,
that he will vote for Gates this time despite opposing him in the past,
because the dire situation calls for a new replacement, quickly. 

 

Unfortunately, I fear Iraq is going to get much, much worse very quickly
before things get at all better. It's a rude awakening for many that we find
ourselves in another Vietnam, and that they believed the singsong. But at
least there is some balance returning to the public voice.

 

The Program on International Policy Attitudes (PIPA) at the Univ. of
Maryland conducted a survey in late October finding that respondents
overwhelming advocated a "good neighbor" policy that would reflect the good
neighbor principles of mutual respect and cooperation: 

*      79% of the respondents believed that "the United States should think
in terms of being a good neighbor with other countries because cooperative
relationships are ultimately in the best interests of the United States."
That same broad majority said that the "United States should coordinate its
power together with other countries according to shared ideas of what is
best for the world as a whole." 

*      65% agreed with the statement: "When the U.S. government justifies
its foreign policies to the American people, it plays on people's fears too
much."  <http://ggn.irc-online.org/neighbor/3654>
http://ggn.irc-online.org/neighbor/3654

 

There is plenty to worry about as we wade through what could be a very glum
holiday season, and I am not referring to retail sales. In addition to the
esteemed JKG, below, Paul Krugman adds his voice to the "R" worries,
available without the NYT 'select' subscription here: 

Is GDP growth below stalling speed?
<http://economistsview.typepad.com/economistsview/2006/12/is_gdp_growth_b.ht
ml>
http://economistsview.typepad.com/economistsview/2006/12/is_gdp_growth_b.htm
l

 

The Dollar Melts as Iraq Burn 

by James K. Galbraith, Guardian UK, Dec. 04, 2006

The melting away of the dollar is like global warming: you can't say that
any one heat wave proves the trend, and there might be a cold snap next
week. Still, over time, evidence builds up. And so, as the greenback
approaches two to the pound, old-timers will remember the fall of sterling,
under similar conditions of deficits and imperial retreat, a generation
back. We have to ask: is the American financial empire on the brink? Let's
take stock. 

It's clear that Ben Bernanke got buffaloed, early on, by the tripe about his
need to "establish credibility with the markets." There never was an
inflation threat, apart from an oil-price bubble that popped last summer.
Long-term interest rates would have reflected the threat if it existed, but
they never did. So the Fed overshot, and raised rates too much. Now long
rates are falling; Bernanke faces an inverting yield curve and even
<http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&stor
yID=2006-12-01T182400Z_01_NYA000057_RTRUKOC_0_US-MARKETS-FOREX.xml&WTmodLoc=
Home-C3-Investing1-hotStocksNews-6> bank economists are starting to call his
next move. That will be to start cutting rates, after a decent interval,
sometime next year. 

Once again, all you monetary policy buffs, in unison please: 

The grand old Duke of York, he had ten thousand men.
He marched them up to the top of the hill. And marched them down again.

This is not good news for the dollar.

 

The US economy is going soft faster than the inflation hawks and growth
optimists thought. Housing has been in free-fall for months. With the new
Congress anxious to display "fiscal responsibility" - cue
<http://www.thenation.com/blogs/notion?bid=15> Robert Rubin who has moved in
very fast on Nancy Pelosi - there won't be any help next year from them. If
business investment falls off, recession could hit in 2007 or 2008. With
that fear in mind, gloomy profit expectations are setting in, and that's not
good for the dollar.

 

The US trade deficit is near all-time records. By itself, this proves
nothing: the US supplies reserves to the world system, and it can run any
deficit that the world is prepared to finance. But, sooner or later the
world may start to get other ideas. 

 

So here's the big question: is the age of the dollar economy lurching toward
an end? Are China, Japan, Saudi Arabia and other big holders of T-bonds
about to start a rush, or even a stately promenade, toward the exits? Let's
hope not, because the world is unprepared to replace the dollar with
anything else. The euro is not suited for the job, and a joint dollar-euro
system would need better central bankers than either America or Europe has
got. An end to the dollar system would therefore be chaotic, inflationary,
and very tough on world trade. The best argument for the dollar has always
been: it's not in anyone's interest to bring it down. 

 

Could it happen, though? Yes, it could. And it could be connected to that
other unfolding disaster. As the "Pax Americana" goes to hell in Iraq -
producing a nervous breakdown among the pro-war elites - let's remember that
security and finance are linked. Typically, the country that provides global
economic security enjoys the use of its financial assets in world trade. And
when the security situation changes, that privilege can be revoked. The
consequences are unpleasant. Ask the British: after the sterling area
folded, it took a generation for the UK to come all the way back.

 

That is partly why  <http://www.epsusa.org> Economists for Peace and
Security - a group I chair - opposed the Iraq war from the beginning. As far
back as 2002,
<http://www.prospect.org/web/page.ww?section=root&name=ViewPrint&articleId=6
619> we understood - as the economically illiterate
<http://www.latimes.com/news/opinion/sunday/la-oe-ferguson20nov20,0,5449044.
column?coll=la-util-opinion-sunday> neo-imperialists did not - that a world
system very favourable to America was on the line. And it was not, as they
seemed to think, just a matter of military might. We knew that if the war
undermined confidence in the power, good faith and common sense of the
United States, that could lead toward disastrous changes on the financial
front. 

 

Four years in and with no end in sight, that risk may finally be catching up
to the almighty dollar. 

 

 <http://www.commondreams.org/cgi-bin/print.cgi?file=/views06/1204-33.htm>
http://www.commondreams.org/cgi-bin/print.cgi?file=/views06/1204-33.htm

 

 

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