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The 1 Percent are ‘In’ and for Obvious Reasons

by John Brian Shannon | June 16, 2016

The 1 percent are already ‘In’ and for obvious reasons. Now, what about the 99 percent?

The 1 percent

In 2016, the richest 1 percent will have more wealth than the rest of humanity combined. Image courtesy of Oxfam International

Widespread dissatisfaction among very large numbers of people is manifesting itself in various ways around the world.

We’ve seen it in regards to the Occupy Wall Street protests, the Scottish referendum, Arab Spring, Syrian uprising, in the deepening distrust of globalization and free-trade agreements, lower voter turnouts, and most recently, in the potential for Grexit and Brexit from the European Union.

But it wasn’t always that way. In the postwar world, people from all walks of life and in every country ‘pulled together’ towards a common and better future. Sure, the Cold War interrupted that mood. But if anything, and in the broadest possible context, the Cold War served to sharpen competition and increase the overall flow towards a better civilization.

When the Cold War ended, Earth’s then-population of 6 billion took a collective deep breath and said; “Now we can get somewhere!” — in regards to creating the kind of world anyone would be proud to live in.

But 26 years on, we have fallen massively short of those aspirations. And it’s becoming more apparent and it is grating on people, moreso with each passing year.

Instead of a giant leap forward for the human race, we had trillion dollar wars in Iraq and Afghanistan that were based on falsehood (the U.S. Iraq Study Group said so) a major recession caused by the unethical and perhaps illegal actions of ‘too big to fail’ financial institutions (but only one person has gone to prison) we had democratic voices being dragged away from peaceful and legal #OWS rallies, we have dangerous people trying to re-ignite the Cold War because it used to be good for the military-industrial-complex economy (so why not try that again?) we suddenly have a 1 percent cohort that owns more than HALF of the world’s wealth (by 2030 they will own 76% of the world’s wealth if measures aren’t taken) we have more outsourcing of jobs (and therefore a larger proportion of low-paying jobs) and we have unelected, elitist, bureaucrats in Europe telling the rest of the continent where to go and what to do.

And that isn’t the half of it.

“It is time for the global leaders of modern capitalism, in addition to our politicians, to work to change the system to make it more inclusive, more equitable and more sustainable.  

Extreme inequality isn’t just a moral wrong. It undermines economic growth and it threatens the private sector’s bottom line.  All those gathering at Davos who want a stable and prosperous world should make tackling inequality a top priority.” 

Lady Lynn Forester de Rothschild, Chief Executive Officer of E.L. Rothschild and chairman of the Coalition for Inclusive Capitalism, who spoke at a joint Oxfam-University of Oxford event on inequality in 2015

(So far, not a single recommendation has been implemented)

Consequently millions of people are losing faith in and blaming globalization when in fact globalization isn’t the problem.

Twenty-six years after the Cold War has ended, our civilization is so much less than it could be that it boggles the mind.

The 1 percenters and their acolytes can’t understand what all the fuss is about.

And I understand that! Their lives are so far removed from reality that; Let the peasants eat cake.” doesn’t begin to describe the disconnect they have with the other 7.2 billion people on the planet.

(For the record, none of it was caused by the 1 percent — they are merely the beneficiaries of the trickle-up economy — therefore, we can never blame them for the problems of the 99 percent)

Ongoing troubles with Russia, China, #OWS, the global economy, Brexit, etc. are just the beginning of our problems. Five years out and ten years out, we will look back longingly to the 2010-2016 timeframe where we had these relatively minor problems to contend with!

We need a new global vision, one that is orders of magnitude better than the present mediocre vision, so that 7.2 billion people will say to themselves, Now this, I can support and work diligently towards.”

The present vision of; Let’s keep making corporations and the 1 percent richer and richer at our expense, getting into conflicts with Russia and China for no reason good enough to justify the risks involved, and unelected and elitist technocrats ruling the Earth (seems to be a growing trend) all so that we can feel grateful to have a low-paying job and a declining middle class?

That’s not a vision! That’s the path to economic suicide!

While there won’t be revolutions there is likely to be widespread voter dissatisfaction and a much lower level of ‘buy-in’ to our civilization from everyday citizens. That alone, is enough to cause irreparable damage to our world.

Everyone has a different idea about why the former Soviet Union failed;

Some say it was the sudden drop in oil prices (not really, that was merely the straw that broke the camel’s back) some say it was Western plots (slight attribution there, IMHO) while some said its fall was due to their failure in Afghanistan (embarrassing, but not Warsaw Pact demolishing by any standard) or by other, unspecified means.

But no, the real reason for the failure of the former Soviet Union was passive defiance by Soviet workers, whose favorite (quietly-spoken) saying was;

“As long as they pretend to pay us, we will pretend to work.”

And that is everything!

Once it became obvious to Soviet workers that the Soviet Union was ‘no longer working’ for their best interests, they employed a sort of ‘passive defiance’ in return for the crass neglect they felt they had endured, which lowered the USSR’s productivity to such an extent that all it took was a few months of low oil prices and some sniping from U.S. politicians for the whole thing to implode.

Now, 26 years after the fall of the Soviet Union, Western workers are beginning to think in terms of ‘passive defiance’ and may soon follow the path of those Soviet workers.

Long story short; There are very real reasons for the growing dissatisfaction and the disconnect between 7.2 billion people on the one hand — and the 1 percent, their acolytes, and the elitist technocrats that serve them, on the other hand.

The grievances of that many people can’t simply be waved away in a ‘Let them eat cake’ kind of way.

We need a grand and new vision, one that is orders of magnitude better than the present non-vision, and one that 7.2 billion people will urgently wish to support.

Anyone up for that?

If not, we’re already on the path to lose everything we’ve built.

Related Article:

Does it matter what Ukrainian citizens want?

by John Brian Shannon | November 2, 2015

Some people in the West are making erroneous statements like this: “With Russia’s military invasion and annexation of Crimea, and the subsequent war in eastern Ukraine…”

What? Russia didn’t militarily invade Crimea, more than 95% of the voters in Crimea voted in a referendum to rejoin Russia at at time when Ukraine’s economy and society was unraveling in even faster-motion-than-usual. All of it has been widely reported by every reputable news source in the world. On those points, there are no gray areas. They are facts.

Ukraine farmer's field

A girl gathers flowers of rapeseed (brassica napus) in a field some 300 km from Kiev prior to heavy rain on May 10, 2010. AFP PHOTO/ SERGEI SUPINSKY Image courtesy of Kyiv Post

Whenever Anything Goes Wrong: Blame Russia!

And it is a complete fairy-tale to portray that all of Ukraine’s historic problems are “subsequent” to Russia’s 2014 annexation of Crimea (at the request of 97% of Crimean voters) or were somehow caused by Russia’s 2014 food aid convoys to the Ukrainian separatists (separatists have been operating there for several decades) in the eastern parts of the country.

Some are trying to make it all Russia’s fault retroactively and are carefully checking their calendars to find the first day of Vlad Putin’s presidency — because they’re sure that’s the day that all of Ukraine’s problems started. (Facepalm!)

Short History of Ukraine

Ukraine was never a self-sufficient country — not even during the time of Peter the Great nor at any time since. Czarist Russia and the USSR poured billions (trillions?) of roubles into Ukraine over a 300-year period in a failed attempt to stabilize that economy. And such stabilization only occurred for exactly as long as the massive subsidies were pouring into Ukraine.

Ukraine: Subsidized to the Hilt for 300-years

During the Cold War, the USSR spent more on subsidies to Ukraine than all of its satellite states combined. That stopped in 1991. Which is why, since the breakup of the Soviet Union, Ukraine has been in an economic tailspin. No other outcome was remotely possible.

Ukraine in Economic Free-fall Since the End of the Cold War

The economy, infrastructure and the level of social and other services provided to citizens by the government have since been in free-fall.

(Some) Western Politicians See Opportunity Rising in Allowing Ukraine to Dwindle

Of course, after the Cold War ended, some European politicians were deluded into thinking that Ukraine would eventually fall into their lap and then they could just waltz into the country and pick its bones, leaving the problem regions and problem people to the government of Ukraine to deal with.

Which is a fine idea if the EU had no soul. Let’s hope it does. We’ve already suffered through two world wars, let’s not make it a three-peat.

However, the Mindset of Westerners Have Become More Sophisticated Since the Cold War Ended

The world has become less naive since 1990 and the cherry-picking of Ukraine, and using that country’s economic distress in a way that works to beat up Vlad Putin to score cheap political points, isn’t going to work for long.

In this modern social media world no amount of government censorship of the traditional media can suppress citizen journalists (bloggers) or the thousands of non-journalist citizen tweeters or Facebook posters about the things they witness on the street.

The EU will not be carting away the best of Ukraine and leaving the problems to the Ukrainian government to solve via the World Bank, the IMF, or even the ADB.

Social Media as a ‘Check and Balance’ on Politics

Citizens nowadays are too informed, too activist, and too impatient to create a better world for everyone on the planet, to allow it to happen that way — and social media routinely travels faster than traditional (and sometimes censored) media.

Somebody Please Tell Western Politicians that the Cold War is Over

We need to scrap this Cold War mentality that persists in some capitals. The Cold War is over because the brightest minds in the world declared that it was over and that it wasn’t conducive to the best outcome for humanity.

We Stand on the Shoulders of Giants

Those diplomatic and military giants upon whose shoulders we (should humbly) stand are the ones who brought an end to the Cold War, and less brilliant minds should not now (nor ever) be allowed to overturn their logical and profound vision.

We should be looking at Ukraine in the following way:

  • Ukraine was a state within Czarist Russia and later the USSR, for more than 300 years.
  • Due to the economic failure of the Soviet Union in 1990, it was forced to stop subsidizing Ukraine and the USSR allowed the country to leave the bloc.
  • Ukraine’s economy has been in various states of free-fall since then.
  • Allowing the West to cherry-pick Ukraine is not going to happen. Even considering it should be ‘far below’ the standards of any country.
  • Ukraine can’t survive without massive subsidies. It’s simply an economic reality.
  • Since 1990, the West has not stepped-up to heavily subsidize Ukraine — why would they now? And the fact is, they won’t, because all of Europe acting together couldn’t afford to pay Ukraine’s bills.
  • Had the West been showing TLC to Ukraine since 1990, and had it taken over the role of multi-billion euro per year benefactor since 1990, a very compelling moral and legal argument could’ve been made that Ukraine, had de facto, become a part of the West. I myself would’ve made the case for Ukraine’s accession to the EU and worked to convince Russia to forego any further claims on Ukraine!
  • But that didn’t happen. Therefore, the West has no moral nor legal right at all in regards to Ukraine. And is in no moral position nor does it have any legal right to lay claim to one square foot of Ukrainian soil — no matter how ‘anti-Putin’ some Western politicians are — as if that’s a qualifier of legitimacy of claim.
  • Crimean’s voted 97.1% to rejoin Russia and we should respect their democratic vote if we’re going to continue to pretend that we care about democratic values in other countries, not just our own.
  • Whichever eastern republics want to hold a referendum to rejoin Russia, they should not be interfered with. Democratic values must be respected. Not just in our own countries, but in all countries. If a majority of citizens there vote to rejoin Russia, so be it. That is well within their rights. No caterwauling allowed.

In summary

The West long ago gave up any moral or legal right to influence, obtain any part of, use, or gain from Ukraine’s present distress — by studiously neglecting to give any meaningful amount of TLC or economic assistance to the country during its time of prolonged economic trauma.

1. It’s clear that the Ukraine economy cannot survive without massive, external subsidies.
2. The West has missed its chance with Ukraine.
3. To Russia, and the voters of Ukraine and the voters of eastern Ukraine: Your move.
4. No sour grapes. We’ve had our chance since the end of the Cold War and we blew it.

Allowing Ukraine to dwindle for 2 1/2 decades and then swooping in at the last moment to cherry-pick the country and concomitantly attempt to embarrass Vlad Putin — is just not up to the world class standards of behavior that we expect from civilized nations.

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Who benefits from a wider Ukrainian conflict?

by John Brian Shannon  | February 18, 2015

During the Cold War it was widely known that the Western forces (except for the Swiss and the Swedes who were politically neutral) could hold the Warsaw Pact countries for only one week before they would need to ‘go nuclear’ against the invading Soviet Army.

Therefore, no matter how bravely the Western European armies, air forces and navies fought and no matter how bravely the U.S. and Canadian forces fought, the numerical superiority of Warsaw Pact (especially in tanks, troops and war matériel) meant that they would completely overwhelm Western Europe in a week.

Which is why the Western powers reserved the right to employ ‘First Strike’ capability (the right to use nuclear weapons as the first option in any conflict against Warsaw Pact nations) in the case that Western Europe was invaded. Logical, but harsh. (It kept the peace for decades, it must be stated)

After the Cold War ended, it was discovered that the Warsaw Pact powers would have won the conventional war even more quickly than we had realized due to other factors that were then-unknown to us.

The West would’ve lost in 3 days and we would’ve been caught ‘flat-footed’ and completely overrun. Yes, a complete rout in the conventional war.

If it really came down to it, that same situation could still play out in Europe in our century, as Russia still enjoys huge numerical superiority in tanks, military personnel, and other war-making capabilities.

In order to not lose all of Europe, we would need to go nuclear on Day 3 of a concerted attack, or we would lose the whole thing.

Which would invite an overwhelming response. Obviously.  Let’s not pretend otherwise.

Map of Europe - early 2014

Europe map courtesy of Cartographic Research Lab, University of Alabama

There is no military solution in Ukraine

Anyone who thinks otherwise, needs to go to War College for 10 years because they are not basing their decisions on the above-noted reality. Which can bite you.

The strongest defence against a Russian takeover of Europe is a strong and united society, one that is impenetrable and indivisible.

Such a society presents a major problem for any invader. With no means to divide and conquer, it means an extended conflict, à la the French Resistance of WWII. No invader wants that, whether political leaders who must deal with the political fallout of rising bodycounts on TV every night for months or years, or military leaders who recognize the devastating effect it has on overall troop morale, affecting their troops based thousands of miles away. See Vietnam War. See also, Soviet/Afghanistan War.

A bickering, splintered European society, and involving ourselves militarily in Ukraine could raise the temptation level of Russian military leaders to a place that we should always avoid.

All that is needed to empower the Russian military to gain undue and increased influence in the Duma and in the office of the Russian president, is a for social disorder to spread in Europe and a few European governments to fall in rapid succession.

As we saw in Russia, circa 1991, kinetic energy can quickly become a dynamic force

We know that Russia’s strong suit is the ability to wage conventional war in Europe.

We know that the Ukrainian separatists/pro-autonomy forces strength lies in their ability to hold their present ground — and at the very worst retreat into Russian territory for days, weeks, or months, to re-enter Ukraine elsewhere and fight from that location. It’s a huge border. There is no way to police it.

We know that Europe’s strong suit is Soft Power. 

Why would we ‘fight’ Ukrainian separatists/pro-autonomy forces (who apparently, receive military and intelligence assistance from Russia) with our weakest hand (our conventional military forces) which happens to be Russia’s strongest hand?

Why not ‘fight’ Ukrainian separatists/pro-autonomy forces/Russian assistance with Soft Power — our strongest hand?

For one example of sending Russia a ‘Soft Power message’ — understand what lower oil prices have done to the Russian economy

That use of Soft Power happened (over the space of a decade) because both President George W. Bush and President Barack Obama decided to ramp-up North American oil production to record levels, resulting in a massive glut of oil which has worked to dramatically lower global oil prices.

Which policy netted a number of results. Gasoline prices for Americans dropped considerably and are still dropping, which boosted the U.S. economy. Due to the huge increase in American petroleum production affecting the global oil supply, global oil prices are still falling. America’s foreign oil imports dropped significantly. By 2017 at the latest, the U.S. will be a net petroleum exporter. Europe’s moribund economy began to improve almost instantly as the oil price fell. Russia’s huge oil exports suddenly became a huge liability for them and growth in the Russian economy has ground to a halt. All of that has happened via the use of Soft Power. Impressive.

Russia needs their oil to sell above $110. per barrel in order for it to be profitable

Unlike Canada where the tar sands oil (classed as #4 sour crude) needs to be priced at over $56./bbl to be profitable, and Saudi crude oil needs to be priced over $7./bbl (classed as #1 sweet crude, if there’s any of that ‘easy to extract and easy to refine’ oil left) and $22./bbl (classed as #2 or #3 medium crude) to be sold at a profit.

It’s the oil speculators (who live mostly in America and Russia, collectively known as the 1%) who profit on anything over and above production costs — whether we are talking oil or any other commodity. But you knew that.

There was no real 1% prior to high oil prices, nor was there a huge, profitable, and growing export market for Russian oil.

Ergo, the high oil prices of recent years are largely responsible for the creation of the 1% in both America and Russia, and the creation of the huge Russian oil export market.

In any potential war, or in cases of serious sabre-rattling, we need to look at who benefits — and ‘work it back’ from there

Oil prices always rise in during periods of convincing sabre-rattling or outright war, and both the oil price rise and any war that might result could ultimately impact many people.

In the case of Ukraine, the people who will benefit from any determined sabre-rattling or outright conflict there, will be relatively small numbers of people (the 1%) most of whom live in America and Russia.

I guess it’s up to citizen oversight to ensure that this situation doesn’t get out of hand.

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