Gaza has managed to replenish its fuel supply by using smuggling tunnels from Egypt, and residents of the Strip rejoiced as benzene prices hit a low of just NIS 1.5 (around 40 cents) per liter, after having previously paid up to NIS 7 (around $1.9). (full article…)

…is the first woman – and the first political scientist – to win the Sveriges Riksbank Prize in Economics (incorrectly known as the Nobel Prize in Economics). Of course this doesn’t mean that I have any clue about her work… though her classic book is on my exam reading list: Governing the Commons: The Evolution of Institutions for Collective Action.

The violence and injustice of the rulers of mankind is an ancient evil, for which, I am afraid, the nature of human affairs can scarce admit of a remedy. But the mean rapacity, the monopolizing spirit of merchants and manufacturers, who neither are, nor ought to be, the rulers of mankind, though it cannot perhaps be corrected may very easily be prevented from disturbing the tranquility of anybody but themselves. (full article…)

Kalashnikov Manufacturer Faces Bankruptcy (full article…)

Last week, the Census Bureau released a statistical report on the last year of George W. Bush’s presidency. The numbers were brutal. On every indicator, Americans lost ground during the Bush era. The median income slumped. The poverty rate increased. The percentage of Americans without health insurance rose. (full article…)

A new report on global wealth says that Europe has overtaken the United States to become the richest region in the world. But the Americans still have more millionaires then the EU — and should you want to marry one, you might be better off in Singapore or the Middle East. (full article…)

US President Barack Obama extended the White House’s 47-year trade embargo against Cuba on Tuesday – missing an opportunity to improve the human rights situation for people on the island. (more…)

When Manuel Zelaya was elected president on November 27, 2005 in a close victory, he became president of one of the poorest nations in the region, with approximately 70% of its population of 7.5 million living under the poverty line. Though siding himself with the region’s left in recent years as a new member of the leftist trade bloc, Bolivarian Alternative for the Americas (ALBA), Zelaya did sign the Central American Free Trade Agreement in 2004. However, Zelaya has been criticizing and taking on the sweatshop and corporate media industry in his country, and increased the minimum wage by 60%. He said the increase, which angered the country’s elite but expanded his support among unions, would “force the business oligarchy to start paying what is fair.” (more…)

“Someone who had a wall knocked down had it rebuilt at the absolute minimum cost,” a Palestinian resident of Khan Younis told Ynet, “but anyone who received compensation for broken windows prefers to close the windows off with nylon instead of installing new ones, in order to use the money received for daily living.” (more…)

April 9 was the sixth anniversary of the fall of the Saddam Hussein government in Iraq. The date passed without much remark in the United States, which is consumed with its own domestic economic problems and high rates of unemployment, rendering a distant foreign misadventure virtually invisible. Gone are the debates over whether a US military occupation could jump-start democratization throughout the Middle East, creating a shining city on a hill rather than an economic and political basket case. Gone are the confident assertions that the path to peace in Israel/ Palestine goes through Baghdad. Gone is the quixotic sabre-rattling against neighboring Iran, which was premised on the false notion that the US did not need Tehran to succeed in Iraq and Afghanistan.

All gone, to be replaced by a yawning silence on this side of the Atlantic, with perhaps a touch of regret or shame among the sliver of observers who remembered the date at all. (more…)

Nobody seriously thinks of returning to the socialist systems of the Soviet type – not only because of their political faults, but also because of the increasing sluggishness and inefficiency of their economies – though this should not lead us to underestimate their impressive social and educational achievements. On the other hand, until the global free market imploded last year, even the social-democratic or other moderate left parties in the rich countries of northern capitalism and Australasia had committed themselves more and more to the success of free-market capitalism. Indeed, between the fall of the USSR and now I can think of no such party or leader denouncing capitalism as unacceptable. None were more committed to it than New Labour. In their economic policies both Tony Blair and (until October 2008) Gordon Brown could be described without real exaggeration as Thatcher in trousers. The same is true of the Democratic party in the US. (more…)

We taxpayers are being robbed for all intents and purposes in order to reduce the losses that some wealthy people bear. This has to be changed. (more…)

Another aid worker put it more bluntly: “Gaza needs to be fed through its mouth, not to be fed anally.” (more…)

Israeli forces used aerial bombing, tank shelling and armoured bulldozers to eliminate the productive capacity of some of Gaza’s most important manufacturing plants during their 22 days of military action in the Gaza Strip. The attacks – like those which destroyed at least 4,000 homes, left some residential areas resembling an earthquake zone and more than 50,000 people in temporary shelters at their peak – destroyed or severely damaged 219 factories, Palestinian industrialists say. (more…)

A million and a half Palestinians are learning the hard way that democracy isn’t so good if you vote the wrong way. In 2006, they elected Hamas when the US and Israel wanted them to support the more-moderate Fatah. As a result, having long ago lost their homes and property, Gazans have endured three years of embargo, crippling shortages of food and basic necessities, and total economic collapse. (more…)

Yet they have been declining for many years. Some have been broken up and sold as more expensive private goods, especially for the well-to do – bottled water, private schools, security guards, and health clubs, for example. Others, like clean air, have fallen prey to deregulation. Others have been wacked by budget axes; the current recession is forcing states and locales to axe even more. Still others, such as universal health care and pre-schools, never fully emerged to begin with. (more…)

Antallet af hjemløse i USA er stigende. Finanskrisen og det stigende antal tvangsauktioner får skylden. (more…)

Defense Minister Ehud Barak agreed on Wednesday to transfer NIS 100 million ($25 million) to Gaza from banks in the West Bank. The transfer is expected to take place in the next few days. (more…)

Of course, what Ha’aretz fails to mention is that Israel collects taxes levied on behalf of the Palestinian Authority and under the Paris Protocol agreement of the Oslo Accords they controls the distribution of Palestinian tax money. So the very notion that Israel is in a position to control Gaza’s finances is an injustice plain and simple—especially now that thousands of civil servants are going unpaid.

Assaf Kfoury: The economic crisis is felt acutely in the US, but has now spread to the entire world, even to countries (in South America, for example) that initially thought they would be spared. And the American presidential campaign and elections cannot but concern people everywhere, given the dominant role of the US globally. The simultaneous unfolding of the two — the crisis and the presidential campaign — has naturally elicited considerable discussion outside the US. In the Middle East, in particular, there has been a kind of speculation, perhaps wishful thinking, be it from the left or from the right. Some Arab commentators have speculated that an Obama administration will follow less aggressive policies. Some other Arab commentators want to see the economic crisis as the sign of an imminent American global decline, and warn pro-American governments and parties to stop doing the bidding of a doomed North American hegemon. What is your response to this kind of thinking? More generally, in relation to the Middle East, what direction is US policy likely to take with the coming Obama administration in the wake of the economic crisis?

Noam Chomsky: I think that US hegemony will continue to decline as the world becomes more diverse. That process has been underway for a long time. US power peaked at the end of World War II, when it had literally half the world’s wealth and incomparable military power and security. By 1970, its share of global wealth had declined by about half, and it has remained fairly stable since then. In some important respects, US domination has weakened. One important illustration is Latin America, Washington’s traditional “backyard.” For the first time since European colonization 500 years ago, South America is making significant progress towards integration and independence, and is also establishing South-South relations independent of the US, specifically with China, but elsewhere as well. That is a serious matter for US planners. As it was discussing the transcendent importance of destroying Chilean democracy in 1971, Nixon’s National Security Council warned that if the US cannot control Latin America, it cannot expect “to achieve a successful order elsewhere in the world” — that is, to control the rest of the world. Controlling Latin America has become far more difficult in recent years. (more…)

Well, let’s begin with the elections. The word that the rolls off of everyone’s tongue is historic. Historic election. And I agree with it. It was an historic election. To have a black family in the white house is a momentous achievement. In fact, it’s historic in a broader sense. The two Democratic candidates were an African-American and a woman. Both remarkable achievements. We go back say 40 years, it would have been unthinkable. So something’s happened to the country in 40 years. And what’s happened to the country- which is we’re not supposed to mention- is that there was extensive and very constructive activism in the 1960s, which had an aftermath. So the feminist movement, mostly developed in the 70s-–the solidarity movements of the 80’s and on till today. And the activism did civilize the country. The country’s a lot more civilized than it was 40 years ago and the historic achievements illustrate it. That’s also a lesson for what’s next.

What’s next will depend on whether the same thing happens. Changes and progress very rarely are gifts from above. They come out of struggles from below. And the answer to what’s next depends on people like you. Nobody else can answer it. It’s not predictable. In some ways, the election—the election was surprising in some respects.

Going back to my bad prediction, If the financial crisis hadn’t taken place at the moment that it did, if it had been delayed a couple of months, I suspect that prediction would have been correct. But not speculating, one thing surprising about the election was that it wasn’t a landslide. By the usual criteria, you would expect the opposition party to win in a landslide under conditions like the ones that exist today. The incumbent president for eight years was so unpopular that his own party couldn’t mention his name and had to pretend to be opposing his policies. He presided over the worst record for ordinary people in post-war history, in terms of job growth, real wealth and so on. Just about everything the administration was touched just turned into a disaster. (more…)

In Sunday’s interview with “60 Minutes,” President-elect Barack Obama reaffirmed that “it is a top priority for us to stamp out al-Qaida once and for all,” adding, “and I think capturing or killing bin Laden is a critical aspect of stamping out al-Qaida.” Obama argued that the Saudi terrorist “is not just a symbol” but is rather “the operational leader” of the organization, which he said is still planning attacks against U.S. targets.

Obama’s quiet seriousness of purpose is a welcome contrast with George W. Bush’s swaggering pronouncements about bin Laden being “wanted dead or alive,” or his darkly comic standard answer to the question of why bin Laden has not yet been caught. “He’s hiding,” Bush likes to say.

And for those who believe Bush, obsessed with Iraq, has either not tried very hard or has secretly avoided capturing bin Laden, Obama’s words are probably reassuring. Now American attention will return to the real author of 9/11, and a more determined effort might yield fruit. But the question is whether the new president should really focus his attention on bin Laden, and spend his political capital in a renewed attempt to bring him to justice. There are many reasons why a stepped-up and publicized pursuit of bin Laden may prove costly to Barack Obama.

The first is the danger of failing, just like his predecessor. After the bravado of the early post-9/11 period, and vows to catch his quarry, Bush came up empty. An enemy who struck at the beginning of his first term is still at loose in the Pakistani-Afghan borderlands at the end of his second. (more…)

This week, we have seen once again how Israel employs the “unlimited use of limited force” to provoke a response from Gaza and to thereby undermine the fragile tahdiya—the Egyptian-brokered ceasefire in place since last June.

Last Tuesday, while the world’s attention was focused on the United States’ presidential election, Israel invaded the Gaza Strip… Ostensibly there to destroy several smuggling tunnels, they encountered resistance (naturally) and killed six Palestinian militants. In response, dozens of Palestinian rockets were subsequently fired into Israel. And in response, Israel made a statement “regretting” Hamas’s hostility and eagerly shut Gaza’s borders, exacerbating the already disastrous humanitarian conditions. Soon after, Israel also forced Gaza’s main power plant to close by cutting fuel supplies, a move which plunged hundreds of thousands into darkness (yet again). Ehud Olmert threateningly declared that a “full-scale” Israeli operation in Gaza is not a question of “if” but “when”, even as he blamed Gaza for breaking the truce! And in response, rockets continue to fly over the border from Gaza into Israel.

And in response… and in response…
(more…)

Nothing became John McCain’s campaign like the ending of it. In a graceful and even moving concession speech on election night, he urged all Republicans to put aside their partisan differences and support Barack Obama as he grapples with the many challenges facing America. His audience was less than equally gracious; but that is hardly his fault.

There have been a few reminders in the closing stages of his doomed campaign of why Americans once fell in love with the guy. Another was his appearance on “Saturday Night Live” on November 1st. Standing next to Tina Fey—the woman whose impersonation of Sarah Palin has done more than anything to turn his campaign into a punchline—Mr McCain made light of his predicament. He could not afford half-an-hour of airtime on the major channels, like his rival, he claimed; so he was appearing on the shopping channel, making his case as best he could while also trying to “sell you some stuff”, such as a limited edition of “Joe action figures”—Joe the Plumber, Joe Sixpack and Joe Biden (pull the cord and he talks for 45 minutes). He also brought the house down at the Al Smith memorial dinner on October 16th. (more…)

Der Spiegal: Professor Noam Chomsky, cathedrals of capitalism have collapsed, the conservative government is spending its final weeks in office with nationalization plans. How does that make you feel?

Noam Chomsky: The times are too difficult and the crisis too severe to indulge in schadenfreude. Looking at it in perspective, the fact that there would be a financial crisis was perfectly predictable, its general nature, if not its magnitude. Markets are always inefficient.

DS: What exactly did you anticipate?

NC: In the financial industry, as in other industries, there are risks that are left out of the calculation. If you sell me a car, we have perhaps made a good bargain for ourselves. But there are effects of this transaction on others, which we do not take into account. There is more pollution, the price of gas goes up, there is more congestion. Those are the external costs of our transaction. In the case of financial institutions, they are huge.

DS: But isn’t it the task of a bank to take risks?

NC: Yes, but if it is well managed, like Goldman Sachs, it will cover its own risks and absorb its own losses. But no financial institution can manage systemic risks.
(more…)

Signataire du manifeste du Forum social de Porto Alegre (”Douze propositions pour un autre monde possible”), en 2005, vous êtes considéré comme l’un des inspirateurs du mouvement altermondialiste. Vous avez fondé et dirigé le Centre Fernand-Braudel pour l’étude de l’économie des systèmes historiques et des civilisations de l’université de l’Etat de New York, à Binghamton. Comment replacez-vous la crise économique et financière actuelle dans le “temps long” de l’histoire du capitalisme ? Immanuel Wallerstein : Fernand Braudel (1902-1985) distinguait le temps de la “longue durée”, qui voit se succéder dans l’histoire humaine des systèmes régissant les rapports de l’homme à son environnement matériel, et, à l’intérieur de ces phases, le temps des cycles longs conjoncturels, décrits par des économistes comme Nicolas Kondratieff (1982-1930) ou Joseph Schumpeter (1883-1950). Nous sommes aujourd’hui clairement dans une phase B d’un cycle de Kondratieff qui a commencé il y a trente à trente-cinq ans, après une phase A qui a été la plus longue (de 1945 à 1975) des cinq cents ans d’histoire du système capitaliste.

Dans une phase A, le profit est généré par la production matérielle, industrielle ou autre ; dans une phase B, le capitalisme doit, pour continuer à générer du profit, se financiariser et se réfugier dans la spéculation. Depuis plus de trente ans, les entreprises, les Etats et les ménages s’endettent, massivement. Nous sommes aujourd’hui dans la dernière partie d’une phase B de Kondratieff, lorsque le déclin virtuel devient réel, et que les bulles explosent les unes après les autres : les faillites se multiplient, la concentration du capital augmente, le chômage progresse, et l’économie connaît une situation de déflation réelle. (more…)

We were promised a “New Economy” of high-tech tradable services to take the place of the offshored manufacturing economy. Wondering what had become of the “New Economy,” Duke University’s Offshoring Research Network searched for it and located it offshore. Yes, the activities of the “New Economy” are also outsourced offshore.

Call centers, IT operations, back-office operations, and manufacturing have long been moved offshore. Now high-value-added proprietary activities such as research and development, engineering, product development, and analytical services are being sent offshore. All that’s left is finance, and it is crumbling before our eyes.

Independent broker-dealers are disappearing: Merrill Lynch, Bear Stearns, Lehman Brothers. These venerable institutions were too thinly capitalized for the risks that they took. Merrill Lynch is now part of the Bank of America, and Lehman Brothers is history. (more…)

Two years ago, Israel completed a unilateral withdrawal from the Gaza Strip. We all remember the intense media campaign shamelessly portraying the settlers as dispossessed victims of a bold move for peace. Among others, Harvard economist Sara Roy argued that Israel’s version of disengagement would bring disaster to an already desperate Gaza. Today, we are witnessing the emergence of an unparalleled economic catastrophe in the Gaza Strip and with it, the evaporation of the last remaining hopes for a Palestinian state. (more…)