Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

The Shock Doctrine: Iraq, Full Circle - Overshock - Erasing A Country - Part 6

Politics / Iraq War Oct 02, 2007 - 12:15 AM GMT

By: Stephen_Lendman

Politics Perhaps no country provides a greater untapped opportunity for unfettered capitalism than Iraq. It represents the planet's last remaining low-hanging oil resources fruit with potentially more of it than Saudi Arabia according to some oil analysts. It's also strategically located in the heart of the oil-rich Middle East (with two-thirds of proved reserves) Klein calls the "crusade's....final frontier." Iraq's potential alone is so enormous it made war the way to crack open its market potential because peaceful methods hadn't worked. Its conquest would then serve as "a different model in the heart of the Arab-Muslim world" that could become a catalyst to opening the whole region.



The potential is a giant free-trade zone, the illusion of newly created democracies, and the freedom for unfettered capitalism "to feed off freshly privatized states." Klein explained this as "the model theory," Iraq as the model, with the idea not being nation-building but nation-creating. But what of the nation already there that's known as the "cradle of civilization." It would have to be erased, and Chicago School fundamentalism would create a new one in its place in its own image with a blank slate to work from.

Bush administration war planners considered the full array of possible shocks and went with them all - blitzkrieg "shock and awe," elaborate PsyOps, use of fear as a weapon, repressive occupation, mass detention and torture, and "the fastest and most sweeping political and economic shock therapy program attempted anywhere....From the start, the invasion was (Washington's message) to the world....in the language of fireballs, deafening explosions and city-shattering quakes." It said dare challenge US authority, and you're next. Shock and awe planners designed its strategy to deter "the public will of the adversary to resist (to render) the adversary completely impotent" from the effects of sensory deprivation and overload inducing disorientation and regression.

In March, 2003, Baghdad got it on a massive scale. The ministry of communication and four telephone exchanges was blitzed and set ablaze cutting off millions of phones and preventing people from learning if their family and friends were alive. Television and radio transmitters were also destroyed along with the electrical grid plunging the city into "an awful, endless night." Residents were trapped in their homes unable to speak or hear each other or see outside at night. "LIke a prisoner destined for a CIA black site, the entire city was shackled and hooded. Next it was stripped."

Unchecked looting did the most to erase the "country that was....Gone are 80% of the museum's 170,000 priceless objects....the national library is a blackened ruin....the Ministry of Religious Affairs....was left a burned-out shell (and the) national heritage was lost." Paul Bremer's senior economic advisor, Peter McPherson, wasn't bothered. It made his job of radically downsizing the state and selling it off easier. Cleaning the slate and erasing the nation was proceeding fast. It "all unfolded in a matter of weeks." Baghdad was "open for business," and the fire sale for its assets began with US firms having first dibs on everything, except oil, and that would come later as it has now but is stalled.

While he was there, Paul Bremer was Washington's man in Baghdad charged with readying the launch of Iraq, Inc. He saw to it laws were passed smoothing the way for Chicago School shock therapy. Two hundred firms were to be privatized immediately to get "inefficient state enterprises into private (predatory) hands...." New economic laws followed that comprised a "wish list....foreign investors and donor agencies dream of," according to The Economist. The corporate tax was cut from 45% to a flat 15%; another allowed foreign companies to own 100% of Iraqi assets and take all profits out of the country; all restrictions on imports were removed; and investors could sign deals and leases lasting 40 years so no future government could change them.

Iraq became a bold new experiment with invasion, occupation and reconstruction transforming the country into a fully privatized new market "with a huge pot of public money" doing it. Klein called the adventure an "anti-Marshall plan," mirror opposite the post-WW II plan, and guaranteed "to further undermine Iraq's badly weakened industrial sector and send Iraqi unemployment soaring." No funds went to Iraqis or their industries nor was anything done to build a sustainable economy, or rebuild local infrastructure like electrical grids, schools, and hospitals. Iraqis played no role in planning, local firms weren't even given "subsubsubcontracts," jobs were destroyed not created while thousands of serf-type foreign workers were brought in and abused, and critically needed social services were ignored.

Another goal was for a fully outsourced, hollow government with no function so "core" a contractor couldn't handle it for profit. It was pure pillage, but nothing went as planned. "Each miscalculation provoked escalating levels of resistance" with occupying forces responding with counterrepression "sending the country into an inferno of (unending) violence." Everything "tearing Iraq apart today - rampant corruption (and unfettered plundering), ferocious sectarianism, the surge in religious fundamentalism and the tyranny of death squads (including US 'Salvador option' ones) - escalated in lockstep with....Bush's anti-Marshall Plan." In that environment, the country became "a cutthroat capitalist laboratory" for shameless pillage. Iraq today is a model, a metaphor for everything wrong with Chicago School dogma showing it to be savage, ruthless, heartless and bankrupt.

Its implementation is the core reason for resistance that continues and grows, but it caught war planners off guard when it began. They thought the shock and awe of attack, invasion, occupation and rapid transformation on the ground would be disorienting. Instead, Iraqis demanded a say from the start in how their country would be rebuilt and transformed. "And it was the Bush administration's response to this unexpected turn of events that generated the most blowback of all" that became even worse by crushing democracy and effectively installing a puppet government in the fortified Green Zone masquerading as a real one.

The result was predictable and so was the harsh response - mass detentions, aggressive interrogations, administration-sanctioned gloves off torture, and US unleashed "Salvador option" death squads making it hard to know who's doing the killing and blasting away at selected targets. What is clear are the consequences - "millions of psychologically and physically (traumatized, angry and) shattered people, first by Saddam, (then) by war, (then) by one another (and the occupation). Bush's in-house disaster capitalists didn't wipe Iraq clean, they just stirred it up....Countries, like people, don't reboot to zero with a good shock; they just break and keep breaking....Which....requires more blasting - upping the dosage...."

Slowly, it's disappearing, disintegrating, erasing an entire country - women behind veils and doors, children from schools, four million displaced, Iraqi industry collapsed, a new growth industry in kidnapping for ransom, a country so unstable investment is high-risk, and even the heavily fortified Green Zone is too unsafe for George Bush to visit on one of his "surprise trips" to the country. Bremer's charge was to build a "corporate utopia" but instead unleashed a "ghoulish dystopia," and, on an April, 2004 visit to the country, Klein thought she was witnessing a mass contractor exodus with 1500 of them leaving in one week.

Now she's not sure. Big investors like Wal-Mart, HSBC and Procter and Gamble never showed up, and in December, 2006, the Pentagon announced a new project to get state-owned factories operating with plans to buy cement and machinery from them instead of the usual corporate suppliers. Does it signal a change of disaster capitalism tactics? Not at all, and it's likely this amounts to no more than tinkering and tokenism that in the end will do little for the local economy and even less to reduce hardened anger.

The Big Oil drafted Hydrocarbon Law is still a work in progress but already inflamed things further, and well it should. It's an anti-Marshall Plan project at its worst, and in whatever final form is a shameless act of theft on the grandest scale. It's a privatization blueprint for plunder giving Big Oil a bonanza and Iraqis a mere sliver of their own resources. In one draft, Iraq's National Oil Company got exclusive control of just 17 of the country's 80 known oil fields with all yet-to-be-discovered deposits set aside for foreign investors. Even worse, Big Oil is free to expropriate all earnings with no obligation to invest anything in Iraq's economy, partner with Iraqi companies, hire local workers, respect union rights, or share new technologies. In addition, foreign investors are guaranteed long-term contracts up to 30 or more years, dispossessing Iraq and its people of their own resources in a naked scheme to steal them and deny them the one source of revenue able to rebuild their shattered country and lives.

The battle for Iraq continues that involves clinging to if not winning the hearts and minds on the home front as well. The country is a wasteland, the nation creation project bankrupt, and the prospect for success bad and worsening. Iraq has been a graveyard for past imperial powers, and it may just be a matter of time until history again repeats. The Brits in the South know it, and after four and a half futile years are tiptoeing out to the dismay of their "coalition" partners. One day, Washington may join them, and for shocked Iraqis it can't come too soon. For now, though, the shock continues, and Iraq more closely resembles hell than "the cradle of civilization."

Reviewing Naomi Klein's "The Shock Doctrine: The Rise of Disaster Capitalism" - Introduction ,
Part 1 - Two Doctor Shocks - Torture and Chicago School Fundamentalism
Part 2 - Chile The First Test - The Bloody Birth of the Counterrevolution
Part 3 - The Shock Doctrine: Surviving Democracy
Part 4 - The Shock Doctrine: Lost in Transition: Slamming the Door on History
Part 5 - The Rise of the Disaster Capitalism Complex - Shock Therapy in the USA

By Stephen Lendman

http://sjlendman.blogspot.com

Stephen Lendman lives in Chicago and can be reached in Chicago at lendmanstephen@sbcglobal.net.

Also visit his blog site at sjlendman.blogspot.com and listen to The Steve Lendman News and Information Hour on TheMicroEffect.com Saturdays at noon US central time.

Stephen Lendman Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules