Michaelle Jean and UNICEF

By Jean H Charles



The United Nations Children's Fund (UNICEF) may have made the wrong move in naming the brainy and attractive Canadian-Haitian Michaelle Jean, formerly the Governor General of Canada, as its representative in Haiti. She minced no words and wasted no time in letting the world know it is time to stop the successive failed experiments in Haiti.

During the year 2010, no country has benefited from so much publicity and marketing and goodwill as the Republic of Haiti. Yet the return for the Haitian people is so insignificant that proper research must be done to find out why a consortium of actors and actions keep contributing to bringing Haiti into an abyss so deep that light at the horizon cannot be seen.

January 12, 2010, was a defining moment for Haiti to be reborn from its recent and past ashes. In less than one minute, a formidable earthquake shook the land under the capital Port au Prince and destroyed lives and limb in a random pattern affecting some 1.5 million people and killing more than 300,000.

A proud and resilient nation that instructed the world about the way to human rights two hundred years ago has been engulfed in a national and international intrigue that now lasted two centuries. The last sixty years have been one of the most painful for the nation. I am a living witness of a country seeking its destiny but halted by dictators, military misfits, and petty demagogues clothed with democratic vestments in bed with an international community too cynical to be naïve about the caustic mix of the relationship.

The Haitian intellectuals -- those who should have led the masses -- have short-circuited the long march forward. Like the Israelites in the Bible they have escaped into Egypt. That Egypt was Canada for Michaelle Jean; it was the United States for me and my family. It has been the Dominican Republic, the Bahamas, France and Florida for others.

Luckily, a critical mass of Haitian intellectuals is returning home to lead the fight for a regime change that implies more than a masquerade election. It signifies the creation of a nation at the dimension of its initial aspiration; a country hospitable to all. The obstacles are many. In the past sixty years the ill governance of the Duvaliers, the Aristides and the Prevals has elevated mediocrity and stupidity as queen and squalor as king of Haiti.

During a cursory visit to Haiti, whether in the countryside or in the main cities, you will find the indices of no government, as well as a myriad of nongovernmental organizations like chicken heads seeking a proper mission. The main highway from Port au Prince to Cape Haitian is impracticable halfway from Gonaives. Desolation, misery lack of institutional support is the lot of the small towns. Bidonvilization, lack of electricity, no potable running water, and sporadic street cleaning is the expectations for the major cities. Port au Prince the capital is a ghost town at night and a hodgepodge of traffic jams and confusion during the day.

This canvas is framed with a mammoth United Nations occupation contingent, with the soldiers ready to shoot from a mounted vehicle or war tank. The only casualty for those soldiers is the wearing of the heavy helmet in 80-degree weather at the dawn of winter.

The international community, with the OAS as the lead agent, is pushing full speed for the futile exercise of election, pretending that democracy is the goal. With a population in abject poverty, uneducated and without hope, the present government is ready and able to buy each vote with a crisp 1,000 gourdes or the equivalent of US$25. For the millions who live under tents and in the hills of the countryside, this sum represents a winning lotto ticket.

This is democracy a la OAS and a la UN. Michaelle Jean, like her namesake St Michael, who chased Satan and the evil angels from heaven, might represent a Trojan horse thrown into the city ready to become a fierce advocate of true democracy in Haiti. From the international podium she may be needed on the national one as the CEO of CRHI, the Haiti Reconstruction Authority that has been dragging its feet on the speedy recovery process.

To apprehend the real problem of the country one has to superpose a triangle over the map of Haiti. The basis of the triangle is formed with a line that includes the 566 rural villages. The second layer represents the 142 small towns. The third layer constitutes the 10 major cities and the capital Port au Prince as the apex.

The rural villages constitute the structural basis of the triangle. They have not received funding for infrastructure and institutional buildings since the birth of the nation. Consequently, the internal migration to the cities has compromised the integrated development. Catastrophes, erosion, public health outbreak are constant companions that visit the nation regularly.

My organization – AIDNOH – has teamed up with Caritas to launch a project of (re)building in the north and the northeast part of Haiti. We have targeted six rural villages to bring about the rudiments of infrastructure and services such as school, health, economic development, youth leadership to root the citizens in their localities. There are 560 more rural villages to reach with the indices of good living! Starting Haiti on the right tract must go through that process.

Note:

A fund called the blue and red (the color of the Haitian flag) angel has been set up to that effect. It is seeking the tax exempt contribution of one thousand angels who will pledge $100 per month for the reconstruction of Haiti starting from the bottom up not the top down. We have already found one angel (Pat Schenck from upstate New York) as such we need 999 more. Would you subscribe to that worthy cause?

November 13, 2010

caribbeannewsnow

Bahamas Blog International

A look at CARICOM from outside the box

By A. Ludwig Ouenniche


It was with mixed feelings and a pinch of sadness that I learned about the stepping down of His Excellency Edwin Carrington from the helm of the Caribbean Community (CARICOM) as of December 31, 2010. The only consolation I got was that he will finally have the opportunity to spend some quality time with his family and loved ones.

For the Caribbean Community, it is rather sad news, and soon the region will realize the dangerous impact of the vacuum that a transition could create. I do hope that His Excellency will have the strength to continue advising and guiding with a much better listening ear.

As observers, from outside the box, such as in our case, the Dutch OCTs, quite often we are flabbergasted by the lack of regional coherence in implementing the multiple CARICOM initiatives during the last two decades.

I would like to share with you some of these initiatives:

The CSME:
As the fundamental base in the objective of CARICOM, we have been noticing an incredible preparation work being done for the CSME. Multiple meetings, workshops, reports, protocols and agreements, most of which were approved and signed, unfortunately, we did also notice that often they were hardly officialised and implemented by the member states.

This has resulted in an obvious lack of regional interaction, collaboration and economic partnership. This form of stagnation has led to a substantial slow down in the region preparedness to compete in this era of world economic globalization.

Regardless of the obvious similarities of the region and notwithstanding the outside influence and pressure diplomatically or financially advising the region to do so, no real effort was ever been individually done by the member states to officially recognize the urgent need for a true regional economic and social integration, this is noticeable not only between the 15 CARICOM member states, but also with the rest of the region, Dutch, British, French and independent.

As an example, the two historic initiatives of His Excellency to officially visit Curacao and Sint Maarten, has not been followed by any other visit by any official from the 15 member states.

The Regional Public Private Partnership:
Recognizing the private sector as a fully-fledged partner, CARICOM has been a fervent promoter of dialogue, interaction and collaboration, not only with individual consultants but with almost all organizations representing the private sector.

From those dialogues during the last decades, several initiatives, directly or indirectly linked to the private sector, were established, such as the CARIFORUM, the CARICOM Regional Organisation for Standards and Quality (CROSQ), the Caribbean Business Council (CBC), the Caribbean Court of Justice, PANCAP, the Caribbean Development Fund and many initiatives in Agriculture including CAPA.

So many well designed tools that, unfortunately, are still not optimally functioning as they are intended to be? Such important mechanisms, that I hope Sint Maarten can make use of some of them in the near future.

The Regional SME Development:
Through the years of struggle of the SME sector, it is obvious that it is still not being considered vital for the economy. To date the regional SME development has never been a priority, individually and regionally.

As far as history can show, the SME topic was never even debated in any of the multiple heads of states meetings. The latest effort made by CARICOM to establish a private sector/SME desk within the Secretariat has yet to receive the proper recognition and support by all the member states and ensure a real functioning Caribbean Association of SMEs, regardless of its geographic location.

The International Exposure, Recognition and Partnership:
The region has never had a real and effective exposure to the rest of the world like we have been experiencing the last few years. Indeed, under the creative initiative of His Excellency, the region has lately acquired serious attention from many “donor countries”, the most noticeable are from Europe, Canada, Central and Latin America and China.

In fact, to my recollection, it is the first time that the Caribbean was well represented in the historic Shanghai Expo.

Unfortunately, the real collective effort to maximize on these initiatives is lacking and in certain cases some have opted for a personal approach in the sole benefit of their individual economies, without any regional vision and/or collaboration.

These are my thoughts about some of these issues. I hope and pray that whatever changes to be made starting January 2011 will be made in respect of the work done so far and that the decision makers will have the wisdom to continue in the same path without any political and personal interference.

CARICOM is and should always be about continuity and the democratic system as having a rotating chairmanship every six months should favour this principal. What should be considered, though, is the instauration of a mechanism of organizational discipline, as in the case of the European Union where, when decisions that are collectively taken, must be individually implemented by all member states or face consequences.

This will certainly establish a much better competitive edge to the wider Caribbean and will definitely minimize the present syndrome of what I call the “Bermuda Triangle”: Trinidad, Barbados and Jamaica.

November 11, 2010

caribbeannewsnow

Bahamas Blog International

Bahamas: Government Ministers encouraged to adopt legislation to outlaw shark fishing in Bahamian waters

Government Ministers urged to protect sharks
By MEGAN REYNOLDS
Tribune Staff Reporter
mreynolds@tribunemedia.net


GOVERNMENT ministers were encouraged to adopt legislation to outlaw shark fishing at a breakfast briefing on shark conservation hosted by the Bahamas National Trust (BNT) yesterday morning.

Experts from the international non-profit organisation the Pew Environmental Group told Cabinet ministers how such legislation would not only ensure the health of the coral reefs and sustain vital fisheries, it would also continue to support the lucrative shark tourism industry as local populations are unmatched elsewhere in the Caribbean.

Director of global shark conservation for the Pew Environmental Group Matt Rand explained how shark populations are declining worldwide as 73 million a year are fished for their fins to be used in the Chinese delicacy shark fin soup.

“Because of this luxury item these creatures are being wiped off the planet,” Mr Rand said.

“The oceans have evolved for more than 400 million years with sharks and they never had predators.

“Suddenly the hunters have become the hunted, and we are taking that top predator out of the ecosystem and by doing that we are disrupting the whole marine balance. “For a country that depends on fishing, disrupting the marine balance could have severe consequences,” he said.

Sharks thrive in Bahamian waters by virtue of a long-line fishing ban imposed 20 years ago to prevent them from becoming by-catch – fish caught unintentionally.

Around 40 species of sharks are estimated to live in Bahamian waters.

Because of the healthy population the Bahamas has become known as “shark diving capital of the world” and attracts visitors to the tune of $78 million a year.

It has also supported 60 scientific research publications over the last 20 years, and allowed for a healthy marine environment.

Mr Rand said: “There are few locations where you can get in the water and see sharks, and you have defacto protection now, but not legislative protection.

“We think this would be a great opportunity, not only for the sharks, but also for the Bahamas.”

The Pew Environment Group has worked with governments around the world and was successful in Palau and the Maldives which have become sanctuaries for sharks.

Although sharks have never been targetted by the fishing industry in the Bahamas, the threat of international demand for shark fins was raised when sea cucumber export company Sunco Wholesale Seafood Ltd CEO James Mackey told The Tribune he would explore the possibility of shark finning from his operation in Mastic Point, North Andros for export to Hong Kong.

Minister of Agriculture and Fisheries Larry Cartwright reassured interested parties attending the event at the British Colonial Hilton yesterday that “the current policy of the government is to not allow for the export of shark fins, etcetera.”

However he did not indicate whether he would implement legislation to protect sharks as he commented on their multi-faceted importance for the marine ecosystem, tourism and scientific research.

“In this vein I applaud the efforts now being made by the BNT and others to protect sharks in the exclusive zone of the Bahamas,” Mr Cartwright said.

As apex predators, sharks feed on large fish, which in turn feed on herbivorous fish that control levels of algae on the reef. Removing them from the equation could have an unprecedented impact on large fish, herbivorous fish and algae levels. BNT president Neil McKinney said: “In this country it’s not just sharks, but the entire marine ecosystem that we need to try to protect, because if we break the web, or a link in the chain, there is a cascading effect.

“The loss of sharks would directly impact our coral reefs. We have to protect what we have. We cannot be a bread basket for the rest of the world and we have to be very careful so that it is here for generations after us.

“That is why there is a need for legislative protection, because policy can be changed much more easily than legislation.”

BNT executive director Eric Carey added: “A lot of times we advocate for issues when species are almost beyond recovery. We have a good opportunity now to do something for sharks while they are still healthy in the Bahamas.”

To find out more and support the campaign click to see The Bahamas National Trust and The Pew Charitable Trusts websites.

November 10, 2010

tribune242

Bahamas Blog International

“…Bitter/Sweet…”

Rough Cut
By Felix F. Bethel
The Bahama Journal
Nassau, Bahamas


Bitter, sweet or bitter/sweet, this life that is mine is wonderful.
Today I revel in all that happened just the other day.

As it now seems, it was just the other day that I took to heart Terecita Armbrister’s admonition, "Felix Bethel, you better listen to me; you have to take the bitter with the sweet!"

In times of trouble Mother Mary comes to me singing words of wisdom, let it be.

That is what I have been doing.

So it is today that I wish to share some more memories of mine that are stored in those archives labeled ‘Just the Other Day’.

Indeed, everything that has ever happened in my life happens to have happened just the other day. And so it is today that I remind you that just the other day some one murdered Deron ‘Sharky’ Bethel.

Deron "Sharky" Bethel was born just the other day and was murdered just the other day. And it was just the other day, when I tried to bring attention to the stinking fact that the blood-stench was offensive in the nostrils of God Almighty.

As important in this just-the-other-day story is the fact that just the other day Sharky baby born. He is well on the way to manhood.

So it was too that just the other day, a baby boy was born to a young shakira –woman. This woman was persuaded to name her baby boy Deron, Dwayne, Rodney, Felix Bethel.

Dwayne Bethel –his dead father’s brother- is today being called Uncle-Daddy.
I can also report that neighbors, family and friends in the Pines have already freighted this boy with the nickname, Young Sharky.

They do so because this man-child is Sharky’s baby.

Just the other day, I spoke about how when this baby was born, there was a wonderful scream and shout, Sharky baby born!

And so there you have it, just the other day is all about death and just the other day is all about life. In this and for this, we say with the Psalmist David," Give thanks to the Lord, who is good, whose love endures forever." This is how it is in a world where everything happened just the other day. Indeed, one of my favorite ‘just the other day’ memories have to do with the birth and death of a senior brother of mine, Jesus Christ. That this brother of mine was born some two thousand years ago is perfectly beside the point. It was just the other day that this precious child leapt out of his Blessed Mother’s womb.

And it was just the other day when He was murdered.

And it was just the other day, some one who reads some of what I am trying to say through the medium of these feeble, crippled words is of the view that this brother is somehow and for some reason ‘mad’ with the world. Nothing could be further from the truth.

Were I to meet the anonymous one and were I put in a position to explain myself, I would tell the person who thinks that I am ‘mad’ with the world; that the truth is precisely otherwise.

I would tell that person that I consider myself one of the happiest persons in the world.

I would explain to that person that while I am sometimes enraged about some injustice or the other, at some distress or the other; truth is that I am so happy with life that I quite literally exult when I try to wrap my head around the fact that I have come uninvited out of an oblivion of days and that I am headed into an eternity of tomorrows.

And so as I live in this shimmering moment, I am learning that you have to reach out to other human beings if you are to get in touch with your own God-given personhood.

My mind is turned in this direction as I wait like other Christians for the ritual coming of that Child on whose shoulders would sit the government; that Child who was fated to become that man who was scheduled to be acquainted with grief; that king who was fated to come in the guise of a suffering servant; that senior brother of mine who was fated to be denied, betrayed, deserted –and thereafter murdered by the authorities of those times in which he lived.

The people are gearing up for their enjoyment of a unique celebration, the arrival of a king. But even as they make preparations to receive the Holy One, they do so in a bitter-sweet kind of way.

That is so because they know the ending of the story. They know that the arrival that is epitomized with worship-Him ends with crucify-Him.

They know the eternal significance of the gold, frankincense and myrrh. Just the other day, the raucous cry was ride on King Jesus!

This happened some two thousand years ago; that is to say, just the other day.

And now –two thousand years later- the word on the street is "Mama bake duh Johnny cake, Christmas comin’

Lord knows that soon –and very soon- the word on some lips will be to the effect that ‘another year done come and gone.’ And Lord knows, too, that some, who anticipate this end to things, will not be here.

These are the ones who will succeed –one way or the other- in finding the exit; and now, take note of the fact that, just the other day, I visited Deron ‘Sharky’ Bethel’s house in Pinewood Gardens and just the other day, I commiserated in mute sympathy with his mother, Diana Bethel, his grandmother, Geneva Bain and with other family members.

And just the other day, I cried with them as they wondered out loud as to why ‘Sharky’ was dead and why they had to sum up his life and why they had to dress his days in a feeble garb of words about a time for every thing under heaven.

And it was just the other day, when I went to Sharky’s funeral and when I was asked to say a few words {Mr. Bethel, keep it short, I was told. And it was just the other day when some of Sharky’s neighbors demanded that there be no cover-up and demanded that the men who were involved in serving up death would be brought to justice.

And so it is that just the other day, Deron ‘Sharky’ Bethel was killed.
But the fact of the matter is that just the other day, the sweet word in Pinewood Gardens was to the effect that Sharky’ baby born.

This birth of this other man-child we celebrate this bitter-sweet Christmas. We celebrate young Sharky’s arrival even as we remember that very precious Child, who was born of a virgin. We also remember Deron "Sharky" Bethel; and we lament the manner of his departure.

But even as we lament sudden and bloody departure, there is a praise-shout on our lips at the arrival of the man-child who bears his name and those of some other men who have made it their business to help shelter this precious child from the wiles of the Evil One.

Sharky’ baby is my God-child. That makes me his God-father.

Today it seems like it was just the other day I celebrated another bitter-sweet Christmas.

That was some twenty-one years ago when something precious that I once owned was lost; that same time when something infinitely precious was found.

I experienced then –and yet again- the exquisitely mingled bitter/sweet taste of the bitter and the sweet.

November 11th, 2010

The Bahama Journal

Bahamas Blog International

The EU and the Caribbean - An engagement of political discourse

By Rebecca Theodore


As the Cold War languishes in the mausoleum of time, and twitching agonies of ghosts resonate in the void, reminding us of the long lived bi-polar days of the US and the Soviet Union, the European Union proves that it is a force to be reckoned with on the global international stage. Although not a nation state, the long-awaited Lisbon Treaty elevated its ranks to legally binding status and strengthened its foreign, security and defence policy even though the General Assembly recently sought to weaken its role in the UN. Hence, these developments come as guaranteed provisions, with political and diplomatic status to match the EU’s undoubted economic and commercial clout in the world at large. And now, the post-Cold War period, when the US was the only undisputed superpower, is over.

The EU is not only the biggest donor of aid to the developing world, and the leader in the Kyoto drive to reduce air pollution that causes global warming, but also leads the way in the struggle to safer food and a greener environment, better living standards in poorer regions, joint action on crime and terror, cheaper phone calls, and elimination of border controls facilitating freedom of movement thereby enhancing its reputation as a community of democratic values and liberal market economies.

Seeing that the EU’s influence in world affairs is on the increase, it becomes necessary to redefine political discourse with Caribbean states not only with France’s overseas regions of Martinique, Guadeloupe, St Martin, and French Guiana, which share cultural affinities with the Caribbean and use the euro as their common monetary unit, but the entire Caribbean at large, since the perceived distinctiveness of Caribbean states emerges from their shared historical experiences.

Critics have argued that political discourse with the EU means being bound by European Union law, as agreed in the European Parliament, and administered by the European Court of Justice and its various branches; but we cannot allow the quality of our thoughts to be polluted by ideology, as the EU and most of the Caribbean's political systems are based on pluralist democracy, fundamental rights and the rule of law.

Herein lies the predicament. If the Caribbean is to effectively tackle its socio-economic and environmental problems, the cost of energy, and communications, then the proposed solution for CARICOM and CARIFORUM to ensure a smooth integration of the region into the world economy is through partnership with the EU. On the other hand, if CARICOM’s main objective is the promotion of the assimilation of its member states through the integration of a single market economy, co-ordination and functional co-operation of foreign policies of its independent states; then the establishment of a more stable and transparent framework for the growth of businesses, and the security of investments in the Caribbean can be achieved through political co-operation in the diversification of political, economic and trade relations with the EU, as the EU supports the creation of a regional unit in the Caribbean.

The Caribbean faces a number of challenges, and political discourse with the EU will emphasize how these challenges can be transformed into opportunities. A decisive political partnership based on shared values, addressing economic and environmental vulnerabilities, promoting social cohesion, and combating poverty will see the birth of good and effective governance, respect for human rights, and improvements in gender equality in the Caribbean.

The presence of the EU in the Caribbean evokes a study in political discourse. The Caribbean can soar to heights unknown and anchor its zenith of economic freedom through political discourse with the EU. Therefore, CARICOM and CARIFORUM states should begin formulations and advising on conciliation strategies with the EU to enhance political, economic and social co-operation for a better and safer world.

November 10, 2010

caribbeannewsnow

Bahamas Blog International

World Bank head calls for monetary system linked to gold

In the run-up to the G20 summit of leading economies, to be held Thursday and Friday in Seoul, the president of the World Bank has published a column in the Financial Times calling for a fundamental revamping of the global currency system involving a lesser role for the US dollar and a modified gold standard. The Financial Times underscored the significance of the column by making it the subject of its front-page lead article on Monday.

In his column, World Bank chief Robert Zoellick, a former US Treasury official, points to the crisis conditions prompting his proposal. He begins by observing: “With talk of currency wars and disagreements over the US Federal Reserve’s policy of quantitative easing, the summit of the Group of 20 leading economies in Seoul this week is shaping up as the latest test of international cooperation.”

Here Zoellick is referring to the announcement by the US Federal Reserve last week of a second round of “quantitative easing”—the printing of hundreds of billions of dollars to buy US Treasury securities—and the sharp criticisms of this move by major US trade competitors including China, Germany, South Africa and Brazil. The US move is seen correctly as an intensification of a deliberate policy to cheapen the dollar in order to make exports less expensive and foreign imports more expensive.

The Obama administration is focusing its economic attack on China. It wants to line up Europe, Japan, India and other Asian countries at the G20 summit behind its demand that China allow its currency to appreciate more rapidly.

However, its cheap dollar policy is roiling relations with other export-oriented, surplus nations, most notably Germany. In unusually bellicose language, German Finance Minister Wolfgang Schäuble denounced the US in an interview this week with Spiegel magazine. Saying the American “growth model” is in “deep crisis,” he added, “The United States lived on borrowed money for too long, inflating its financial sector and neglecting its small and mid-sized industrial companies.”

He went on to declare: “The Fed’s decisions bring more uncertainty to the global economy… It’s inconsistent for the Americans to accuse the Chinese of manipulating exchange rates and then to artificially depress the dollar exchange rate by printing money.”

The US—the world’s biggest debtor nation—is exploiting the privileged position of the dollar as the primary world reserve and trading currency to drive up the exchange rates of its rivals, in essence a trade war measure. It is unleashing a flood of speculative capital into so-called emerging economies in Asia, Latin America and Africa, pushing their currencies even higher and creating the danger of speculative bubbles and inflation.

This aggressive and unilateralist policy on the part of the United States is exacerbating global tensions and destabilizing the world monetary and financial system. It is heightening the likelihood of a breakdown of international relations and the outbreak of the type of uncontrolled currency and trade warfare that characterized the Great Depression and led ultimately to World War II.

In his column, Zoellick urges the G20 to “build a cooperative monetary system that reflects emerging economic conditions.” He continues: “This new system is likely to need to involve the dollar, the euro, the yen, the pound and a [Chinese] renminbi that moves towards internationalization and then an open capital account.”

The new system, he writes, “should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although text books may view gold as the old money, markets are using gold as an alternative money asset today.”

This is a tacit acknowledgment that the monetary system that has existed since 1971 and is rooted in the system established at the end of World War II—and which is anchored by the US dollar—is no longer viable. It is furthermore an admission that there is no other national currency that can replace the dollar as the basis of global currency relations.

One expression of eroding confidence in the US dollar—and the monetary system based on the dollar—is the spectacular surge in gold prices. On Monday, gold for December delivery set new records, closing above $1,400 an ounce.

Zoellick argues that the “scope of changes since 1971” justifies the erection of a new monetary system. However, he is silent on the most important of these changes—the vast decline in the global economic position of the United States and the decay of American capitalism.

The United States emerged from the wreckage of World War II as the unchallenged global economic hegemon. Its industry dominated world markets. The US share of world auto production in 1950 was 79 percent. In 1955, it accounted for nearly 40 percent of world steel production. At the same time, the vast bulk of the world supply of gold was in Fort Knox.

The US engineered the postwar recovery of world capitalism, ensuring that the monetary and trade architecture was favorable to its interests. Key to the postwar recovery and expansion was the establishment of a new monetary system, the Bretton Woods system, under which exchange rates were fixed and pegged to the dollar. The dollar served as the world reserve and trading currency, but it was backed by gold at the rate of $35 per ounce.

However, this arrangement contained a fundamental contradiction—the attempt to use a national currency as a world currency. Even the massive economic wealth and power of the United States could not override the basic contradiction between the global economy and the nation-state system of capitalism.

By the late 1960s, the quantity of dollars held overseas far outstripped US gold reserves, and the US was facing growing competition from resurgent Germany and Japan. The Bretton Woods system collapsed in August of 1971 when the Nixon administration, facing a run on the dollar, removed the gold backing from the US currency.

That ushered in so-called Bretton Woods II, a system of floating exchange rates tied to the dollar—an arrangement that was even more dependent on international confidence in the strength of American capitalism. That confidence has progressively eroded as the US has built up ever-greater debts and its industrial base has withered, leaving its economy increasingly dependent on financial speculation.

The financial crash of September 2008, which was centered on Wall Street, has fatally undermined confidence in the dollar. The fact that the financial crisis takes the form of a currency war and breakdown in the system of exchange rates—what had been the pillar of the postwar recovery of world capitalism—underscores the fact that the current crisis is not merely a conjunctural downturn, but rather a systemic breakdown of the system.

Zoellick’s proposal for a return to some form of gold standard is both utopian and reactionary. There is no possibility that the dramatic shift in economic weight between the older imperialist powers—first and foremost, the US—and emerging economies such as China and India can peacefully produce a new international economic equilibrium based on a reduced role for the US dollar. As in the twentieth century, so in the twenty first, the declining powers will not willingly accept a lesser position and the struggle for control of markets, raw materials and sources of cheap labor inevitably leads toward world war.

Were the proposal for a new gold standard to be carried out, moreover, it would result in a catastrophic contraction of credit, plunging the world into a depression exceeding that of the 1930s.

The breakdown of the currency system is an expression of an insoluble crisis of the capitalist system that can be resolved in a progressive manner only through the international revolutionary movement of the working class and the establishment of world socialism.

Barry Grey

9 November 2010

wsws

Bahamas Blog International

Mr Obama, it will not be an easy road

By Christopher-Burns

Without advancing the crucifixion theory, US President Barack Obama should have known that in politics the journey between Palm Sunday and Good Friday can be as triumphant as it can be absolutely hellish.   Consequently, he should have anticipated the terrible results from last Tuesday's mid-term elections, because as he now concedes, "Ultimate power resides with the people"; however irrational the exercise of that power may appear.  For, whether by fair means or foul, the Republicans, aided and abetted by an insurgent group of angry, impatient, ultra-conservative (and more often than not unreasonably myopic) Tea-Partiers, stuck to their message of demanding a smaller government and lower taxes and were handsomely rewarded by American voters.

Defeats are always hard to accept, even in circumstances where it was obvious from the start that the quality and quantity of inputs would not have produced good outcomes, but we have to move on.  So like many other presidents, prime ministers and premiers, Mr Obama may have come to the realisation that leadership is not easy and that political leadership, in particular, is one of the most thankless jobs anyone could aspire to, because no leader, however well-intentioned, can ever meet everybody's expectations.  Nonetheless, last Tuesday's election results were not about a pack of ingrates.  People were "mad as hell" about everything and they forgot about what Obama inherited - since as president he owns all the issues.

Remarkably, Obama's admission that he has not been as passionate in leadership as he was as candidate - though visibly obvious - conveys a tiny part of a bigger problem.   You see, Democrats foolishly underestimated the strength and reach of the Tea Party; herein lies the real problem.  As I see it, Obama continues to err by stubbornly pursuing his brand of clumsy intellectualism over practical intelligence and empathy, especially in moments when the country wants compassionate leadership.  Sometimes, he appears so academically bionic and unexcitingly robotic that he seems unable to read the mood of the people, much less understand the political zeitgeist, however threatening.  I have never been able to fathom why he chooses to use feather pillows to fight the massive artillery power of his political opponents, knowing full well that American politics is a high contact sport.

None of this is to suggest violent confrontation or political incivility, but my gosh, stand up and fight like a man, if you truly believe in something, as I think Obama does in his policies.  Say what you may about the Republicans and their coterie of Tea-Party supporters, they are never short on enthusiasm and stick-to-itiveness.  This makes me worry about Obama's Pollyannaish expectations for bipartisanship and compromise.  This approach may seal the deal for his ouster in 2012, as the Republicans are not in the mood for consensus and with Congress now at extremes, right wing-conservatives versus liberal democrats; "Blue Dog" democrats and moderate-conservatives were booted out, cooperation looks unlikely.

The Democrats lost big and the scale of the electoral trouncing will have far-reaching implications, not only on the Democratic Party or Obama's presidency, but also on policy issues affecting immigration, education, climate-change, trade, health care, social and welfare spending, among other things.  Politically, the size of the Republican win will give it the ability to carry out major redistricting - a practice that could almost guarantee a Republican majority in both Houses of Congress for a long time to come. Nationally, there were about 680 seat changes (including governorships and state races) to Republican control.  This is above the 412 or so seats that changed hands when Democrats lost in 1994 under Bill Clinton.

In fact, historians have now declared the 60-seat gain by Republicans in the House of Representatives as the biggest since 1948.   Already, predictions are being made as to whether or not Obama can survive this massive political tremor as he heads into the lame-duck session of his presidency and then on to the 2012 presidential and mid-term general elections.  Shortly after Obama won the 2008 presidential elections, I remarked privately to a friend that his victory and success, though absolutely thrilling, historic and substantially important, may have been a strategy to place an important, but necessary, pause - like a comma - in America's history to showcase America as the land of possibilities; however temporary.  As I said then, I say now: unfortunately I do not envision Mr Obama serving as president for more than one term and it would have nothing to do with underachievement.

Undoubtedly, Mr Obama's accomplishments far outweigh those of his predecessor, George Bush. He has brought a refreshing pedigree and purpose to the White House and to American leadership around the world.   He has achieved in that health care reform law what many presidents before him did not achieve.   Yet, Obama has been subjected to more attacks on his legitimacy to be president, his religion and love of country than any other president.   Without citing race as the underlying factor for the hostility and indifference directed towards him, Obama's success does not mean America is post-racial - just listen to some Tea Partiers talk about "putting real Americans back in the White House".

Now that the Republicans have some power, let us see what they are going to do with it because America's problems are bigger than tax breaks, debt and deficits. America has been lagging behind some other industrialised countries in areas such as education, innovation, research and science.   If they think stepping back into becoming an isolationist state is good for America they'd better think twice.   If they think locking out immigrants and restoring the Bush tax cut will lead to an automatic spiralling in job growth or robust investments and economic activities they'd better prepare for a major disappointment.   Certainly, it will not be an easy road.

November 08, 2010

Burnscg@aol.com

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