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Too much of a good thing 

Underlying the US drive to war is a thirst to open up new 
opportunities for surplus capital 

George Monbiot
Tuesday February 18, 2003
{HYPERLINK "http://www.guardian.co.uk"}The Guardian 

We are a biological weapon. On Saturday the anti-war movement released 
some 70,000 tonnes of organic material on to the streets of London, and similar 
quantities in locations all over the world. This weapon of mass disruption was 
intended as a major threat to the security of western governments. 
Our marches were unprecedented, but they have, so far, been unsuccessful. 
The immune systems of the US and British governments have proved to be 
rather more robust than we had hoped. Their intransigence leaves the world with 
a series of unanswered questions. 
Why, when the most urgent threat arising from illegal weapons of mass 
destruction is the nuclear confrontation between India and Pakistan, is the US 
government ignoring it and concentrating on Iraq? Why, if it believes human 
rights are so important, is it funding the oppression of the Algerians, the 
Uzbeks, the Palestinians, the Turkish Kurds and the Colombians? Why has the 
bombing of Iraq, rather than feeding the hungry, providing clean water or 
preventing disease, become the world's most urgent humanitarian concern? 
Why has it become so much more pressing than any other that it should 
command a budget four times the size of America's entire annual spending on 
overseas aid? 
In a series of packed lectures in Oxford, Professor David Harvey, one of the 
world's most distinguished geographers, has provided what may be the first 
comprehensive explanation of the US government's determination to go to war. 
His analysis suggests that it has little to do with Iraq, less to do with weapons 
of mass destruction and nothing to do with helping the oppressed. 
The underlying problem the US confronts is the one which periodically afflicts 
all successful economies: the over-accumulation of capital. Excessive 
production of any good - be it cars or shoes or bananas - means that unless 
new markets can be found, the price of that product falls and profits collapse. 
Just as it was in the early 1930s, the US is suffering from surpluses of 
commodities, manufactured products, manufacturing capacity and money. Just 
as it was then, it is also faced with a surplus of labour, yet the two surpluses, 
as before, cannot be profitably matched. This problem has been developing in 
the US since 1973. It has now tried every available means of solving it and, by 
doing so, maintaining its global dominance. The only remaining, politically 
viable option is war. 
In the 1930s, the US government addressed the problems of excess capital and 
labour through the New Deal. Its vast investments in infrastructure, education 
and social spending mopped up surplus money, created new markets for 
manufacturing and brought hundreds of thousands back into work. In 1941, it 
used military spending to the same effect. 
After the war, its massive spending in Europe and Japan permitted America to 
offload surplus cash, while building new markets. During the same period, it 
spent lavishly on infrastructure at home and on the development of the 
economies of the southern and south-eastern states. This strategy worked well 
until the early 1970s. Then three inexorable processes began to mature. As the 
German and Japanese economies developed, the US was no longer able to 
dominate production. As they grew, these new economies also stopped 
absorbing surplus capital and started to export it. At the same time, the 
investments of previous decades began to pay off, producing new surpluses. 
The crisis of 1973 began with a worldwide collapse of property markets, which 
were, in effect, regurgitating the excess money they could no longer digest. 
The US urgently required a new approach, and it deployed two blunt solutions. 
The first was to switch from the domination of global production to the 
domination of global finance. The US Treasury, working with the International 
Monetary Fund, began to engineer new opportunities in developing countries for 
America's commercial banks. 
The IMF started to insist that countries receiving its help should liberalise their 
capital markets. This permitted the speculators on Wall Street to enter and, in 
many cases, raid their economies. The financial crises the speculators caused 
forced the devaluation of those countries' assets. This had two beneficial 
impacts for the US economy. Through the collapse of banks and manufacturers 
in Latin America and East Asia, surplus capital was destroyed. The bankrupted 
companies in those countries could then be bought by US corporations at rock-
bottom prices, creating new space into which American capital could expand. 
The second solution was what Harvey calls "accumulation through 
dispossession", which is really a polite term for daylight robbery. Land was 
snatched from peasant farmers, public assets were taken from citizens through 
privatisation, intellectual property was seized from everyone through the 
patenting of information, human genes, and animal and plant varieties. These 
are the processes which, alongside the depredations of the IMF and the 
commercial banks, brought the global justice movement into being. In all 
cases, new territories were created into which capital could expand and in 
which its surpluses could be absorbed. 
Both these solutions are now failing. As the east Asian countries whose 
economies were destroyed by the IMF five years ago have recovered, they have 
begun, once more, to generate vast capital surpluses of their own. America's 
switch from production to finance as a means of global domination, and the 
government's resulting economic mismanagement, has made it more 
susceptible to disruption and economic collapse. Corporations are now 
encountering massive public resistance as they seek to expand their 
opportunities through dispossession. The only peaceful solution is a new New 
Deal, but that option is blocked by the political class in the US: the only new 
spending it will permit is military spending. So all that remains is war and 
imperial control. 
Attacking Iraq offers the US three additional means of offloading capital while 
maintaining its global dominance. The first is the creation of new geographical 
space for economic expansion. The second (though this is not a point Harvey 
makes) is military spending (a process some people call "military 
Keynesianism"). The third is the ability to control the economies of other 
nations by controlling the supply of oil. This, as global oil reserves diminish, will 
become an ever more powerful lever. Happily, just as legitimation is required, 
scores of former democrats in both the US and Britain have suddenly decided 
that empire isn't such a dirty word after all, and that the barbarian hordes of 
other nations really could do with some civilisation at the hands of a benign 
superpower. 
Strategic thinkers in the US have been planning this next stage of expansion for 
years. Paul Wolfowitz, now deputy secretary for defence, was writing about the 
need to invade Iraq in the mid-1990s. The impending war will not be fought over 
terrorism, anthrax, VX gas, Saddam Hussein, democracy or the treatment of 
the Iraqi people. It is, like almost all such enterprises, about the control of 
territory, resources and other nations' economies. Those who are planning it 
have recognised that their future dominance can be sustained by means of a 
simple economic formula: blood is a renewable resource; oil is not. 

Bax.s.
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www.e-laser.org
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