Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Monday, October 15, 2018

From football to property and beyond, inequality is the mother of all crises

Inequality does indeed affect us all, both physically & mentally. It's foolish to say that the poor people are happier than wealthy people. No, poor people are not happy because they have to work that much more to earn just enough to fill theirs & their children's stomachs. Then, there are education costs, housing costs, utilities, healthcare costs, & now, even the clean, drinking water costs money. Add the social exclusivity of poor people & their families due to their poverty & the life of the poor person is just hellish.

To develop & provide sustainable resources to everyone equally, the wealthy & the poor, every country needs to invest in its infrastructure & economic policies. Although, the writer of this opinion post takes a simplistic view that if Netherlands can increase taxes, & also spread its tax net, to help out the vulnerable sections of its own populations, then everyone else can, it is pretty much impossible to do that without proper practice of faith & religion.

How will religion help in alleviating poverty & instituting equality among the populace? Netherlands is a small Scandinavian country with a much smaller population than many developing countries, like Pakistan, India, Brazil, Argentina, Nigeria, Kenya, Thailand etc. It is also a pretty much a homogeneous population, very much unlike many other developing countries around the world. Still, it's impossible to eradicate inequality because the rich control the political policy-making machine.

This eradication, or at least, alleviation of inequality, can only happen through ethical people in governments & policy-making area. Increasing taxes or spreading the tax net far & wide may help in increasing the government coffers but won't help much if that money is once again ends up in the pockets of rich executives & wealthy citizens of the country, or politicians loot that money. So, how does the general public ensure that government is full of good, ethical people? And even after identifying such honest people, can the general public act rationally enough to bring them to power & stick by them, while, they increase taxes on rich people, & use those taxes to upgrade the horrible situation the general public is living in? Remember, all this will take time, whereas, the general public will want to see substantial major changes as soon as possible.

Only ethics can help there, & ethics comes through religion. Ethical & religious people will need to become leaders & consider government coffers public money & hence, need to be spent on them.

Besides ethics & religion, huge changes in electoral policies need to be implemented. These kind of substantial changes to alleviate poverty & inequality need a good & long time frame, like a decade or more, easily. But, in most democracies, even when they are stable, a government & leader has about a few years, anywhere from 8 to 10 years to finish his / her work. Of course, that has to be done, if & when, opposition parties are silent & happy with what the government is doing (then, what's the point of the opposition party?). But, these fundamental economic & social changes can easily take couple of decades to meaningfully show any changes in the system.

So, inequality indeed adversely affects a major portion of the general populace, but alleviating or eradicating inequality requires a lot more work than simply changing the tax system (even that is huge work in itself).

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Inequality affects all of us. I live in Amsterdam, where house prices are now rising so sharply that ordinary, hard-working people don’t get a look-in. In London, it’s been like that for years. Whole neighbourhoods are unaffordable. Century-old football clubs have become the playthings of billionaires.

And the trend continues. More and more of the world’s wealth is in the hands of fewer and fewer people. I believe that tolerating this growing inequality will go down in history as humanity’s biggest mistake since communism.

People are essentially social animals. They can inspire each other, but they can also frustrate and discourage each other. And that’s what gross inequality does. It unravels the very fabric of our societies. It robs people of decent jobs and decent pay. And it robs them of their sense of purpose and self-worth.

In developing countries, the gap between rich and poor is far bigger. And it isn’t merely a technical issue, it is the result of political choices. Inequality is truly the mother of all crises. Whether it is conflict, climate change, economic stagnation or migration flows, inequality is always a major underlying cause.

Last autumn, the UN adopted new global goals. One of the main targets is to eradicate extreme poverty by 2030. To achieve that, economic growth must stay at the level it had for the past 10 years and its benefits must be far bigger than average for the poorest 40%.

The challenge we face is summed up in the slogan: “Leave no one behind”. The smartest policy here is to invest in the poorest of the poor. If we don’t, there is no way we will defeat extreme poverty by 2030. Which means we won’t generate the economic growth needed to achieve the other global goals. And we won’t reach our climate goals either.

“Leave no one behind” is also a moral imperative. In the past 25 years, globalisation has helped the world make spectacular progress on poverty. But at the same time we’ve allowed large groups to lag behind, and an even larger group to fall by the wayside completely. One of the main causes is exclusion. Whether it is on the basis of gender, religion, disability or sexual orientation, entire groups are being left out.

The mantra that no one should be left behind offers hope of a much-needed correction. It means managing globalisation properly. It means ending the unbridled power of elites. If realised, it would mean everyone could finally benefit from – and participate in – global development.

We know how to make this happen. Last year, we analysed Dutch policy to see how we could contribute more to inclusive development. It resulted in a plan of action worth €350m (£269m) that we are now putting into practice.

The plan consists of 20 measures across two areas. The first involves generating work and income for African women and young people with poor future prospects. The second consists of 10 measures to prompt robust political dialogue with developing countries on inclusive growth and development.

That dialogue is crucial, because resistance to change is often strongest precisely where change is needed most. In many poor countries, elites cling stubbornly to wealth and power until conflict, death and destruction are inevitable.

But the most powerful weapon against inequality is tax. Governments have to fight tax avoidance and tax evasion. My country has initiated the renegotiation of 23 tax treaties. We’ve proposed anti-abuse provisions to ensure that the Netherlands is no longer an attractive option for companies that want to avoid taxes. And we now forgo tax exemptions on goods and services provided under official development assistance.

At the same time, we need to broaden the tax base in the developing countries, which often rely on consumption taxes that make the poor pay a higher proportion of their income in tax than the rich. These countries need a progressive tax regime. And for that they need assistance in administering and collecting more complex forms of taxation, such as income and wealth taxes.

Taxation is not a popular subject for politicians. But it deserves far more attention. A recent study, by Jan-Emmanuel De Neve and Nattavudh Powdthavee, brings further proof that higher taxation equals more happiness.

For many developing countries, the tax burden is still 10-15% of gross domestic product. According to the UN, they’ll have to raise collection to about 20% just to be able to finance their share of the global goals. In Scandinavia, the average tax burden is more than 45%. I wish the same for every country! Provided the money is spent well, of course.

So we have our work cut out. To the super rich, I say: trickle-down is dead. To the elites and the kleptocrats in poor countries, I say: there’s a limit to how high you can build the gates around your communities. The time has come to pay. Make sure the payment is in taxes.

Tuesday, June 19, 2018

World Bank & IMF Polices Behind the Inadequate Health Infrastructure to Quell Ebola

Another interview where it is being reiterated that IMF & World Bank, the international financial institutions, are essentially, tools of the developed countries to keep the developing countries from ever developing. I have blogged about this several times before this post.

IMF & the World Bank are the instruments of the West, to keep the development goal, out of reach, from developing countries in Latin America, Asia, & Africa. These institutions provide billions in loans to countries with known corrupt leaders & then impose harsh restrictions, like austerity measures, to recover those loans. The corruption of the political leaders are well known. Those austerity measures tie the hands of the successive governments, regardless of how much they are well-intentioned, behind their backs, & the developing countries fail to develop.

These countries are instructed to privatize everything, increase prices & taxes for the local citizenry, but decrease their taxes & royalties from natural wealth, & let the international corporations loot the developing countries of their natural wealth. Of course, then, is it any wonder that developed countries keep developing further & amassing huge wealth, whereas, the developing countries stay at the bottom of the pile. If, by any chance, the leaders of the developing countries resist following the demands of the IMF, World Bank, of the political leaders of the developed countries, then political assassinations & interference, & ultimately, war, is imposed on those developing countries.

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SHARMINI PERIES, EXEC. PRODUCER, TRNN: … do you think this is an adequate response on the part of the World Bank?

NII AKUETTEH, FMR. DIRECTOR AT AFRICA ACTION: I don't think so … the World Bank and the IMF have contributed to the weak health systems in Africa … . So, therefore, so to speak, they contributed to the problem; therefore they need to own up to their mistakes and they need to do more to help rescue these countries.

PERIES: What do you mean by that? What role has IMF and the World Bank played in West Africa in the past?

AKUETTEH: Oh, well, you know, two phrases. One is structural adjustment programs. Anybody who's been studying Africa since independence knows that especially since the '80s, when Ronald Reagan got into power in the United States and the World Bank and the IMF actually made themselves the economic stewards of economic policy in Africa, structural adjustment, otherwise called austerity measures, they have imposed these policies on the African countries regardless of what the people want, regardless of what the leaders wanted. So structural adjustment is one of those phrases. And the governments were told, were forced, that in order to get a good mark from the World Bank and the IMF, you have to keep government small, you have to slash government officials' pay; after you have slashed the number of government officials, you have to privatize everything and you have to force people to pay, and especially to pay for health care and to pay out of pocket for education.

So I think, though structural adjustment went on for decades and they devastated the African economies, the other phrase that I wanted to throw in is IMF riots. This actually came from Africa, where every time the IMF would impose economic conditions, ordinary people in the street were so hit hard that they would riot. And so it actually created a new phrase in the English language and in economic writing: IMF riots.

PERIES: So, Nii, explain more, in the sense that, yes, of course the IMF would have these horrendous austerity policies and neoliberal economic policies and force governments to shrink their bureaucratic and civil service, all these things in the past were set up in order to service their people. But why are they forced to come to these kinds of agreements with the World Bank and the IMF?

AKUETTEH: I think that's a great question, because on the surface of it, a government, a country can simply say, sorry, your conditions are too harsh, we don't have to deal with you. After all, the United States doesn't take the advice of the World Bank and the IMF. A number of big countries don't. But for African countries, number one, they are economically small and weak. Secondly, having just gotten out of colonialism--I know this is about 50 years ago, but when you are trying to restructure economic systems that was built over more than a century, it is not easy. And so they are tied into the global economy. They are tied into their former colonial masters. That is especially France and the U.K. And they are tied to the United States.

Now, those three countries, the United States, the U.K., and France, play a major role in the World Bank and the IMF. And therefore the World Bank and the IMF actually act as policeman and gatekeepers for the entire global economy if you are an African country, because the rest of the global economy says to you, we will deal with you only if the World Bank and the IMF says you are well behaved. And the World Bank and the IMF will say you are well behaved only if you agree to their conditions. And therefore it's almost impossible for an African country to say, listen, I don't want to do this anymore.

You know, everybody who reads the news, Africa news, and especially U.S.-Africa, will know that the West doesn't much care for Robert Mugabe. Usually you will be told that it's because he is internally repressive and other things. But I happen to think that one major factor also is that for about ten years after Zimbabwe became independent, Robert Mugabe followed the dictates of the World Bank and the IMF very closely. And after about ten years he said, no, this is not working no more. For instance, they made Zimbabwe sell its stock of maize, and say it's uneconomical to hold it; sell it, buy it when you need it. But that was bad economic advice, because when they wanted to buy it, they had to pay more. And so I am saying that countries that defy the IMF and the World Bank get punished by the larger global economy, and therefore it's not been very easy for those countries to reject what the World Bank and the IMF recommend, because they were doing it on behalf of the global economy.

PERIES: But these economies are very resource-rich. I mean, places like Sierra Leone have diamonds and gold, and West Africa is considered one of the natural resource rich regions of the world. The World Bank adopting these policies is really opening the doors and the gates to a flood of corporations coming in to do business in the region and reap the resources out of the region and leave very little behind. Can you sort of describe those complex relationships between the World Bank, the IMF, the local governments, the corporations that have left--the conditions that they have left in the region that is now unable to cope with … a grave epidemic of Ebola in the region?

AKUETTEH: I think that question is fantastic. I mean, because the reason that the World Bank and the IMF do what they do, the reason that they squeeze the African countries and say to them, you do what we tell you, never mind what your own people might want, never mind what your own leaders might want, the IMF and the World Bank, there's a method to their madness. And I believe said the method, the reason they do what they do, is actually to make it safe and hospitable for international corporations to go in and plunder Africa's wealth. It is as simple as that.

Now, it's been going on for years. The IMF and the World Bank are creatures created after the Second World War. They're Bretton Woods institutions. So, after the Second World War, with the U.K. and Western Europe being weakened, they were created to help stand up again in the global economy. So they took over what has been done, which is plundering Africa's wealth, leaving very little for the Africans … . That question goes to why this is done. The World Bank and the IMF would tell the African countries, keep governments small; you can't afford--. I mean, when I was in school, our governments were being told, listen--I'm from Ghana--you are a small country, the United States doesn't invest this much into education, so why should you? You shouldn't invest in education; let parents pay for it, when most parents are poor and when education is an investment. So they want to keep governments small. They want the people of the country to get as little as possible from the wealth--the bottom line is because they want the Western corporations to continue taking the wealth from out of Africa.

This is precisely why they do it. Even as recently as in Liberia, when Ms. Johnson Sirleaf--whom I know well because she was my boss at a certain point-- when she became president, she got a lot of kudos from the West because she is well known in the West and it was great that a woman had been in elected president in Africa. But behind the scenes, she was told that, listen, you will get a lot of corporations investing if you don't insist that they clean up the environment, if you don't push hard for labor protections, if you don't insist on high taxes, so all the things that the World Bank and the IMF says.

I'm saying your question is great because it goes to the heart of it: it's designed to make it easier for Western corporations to plunder Africa. It's as simple as that.

Monday, May 23, 2016

Who Makes US Foreign Policy? - Lawrence Wilkerson on Reality Asserts Itself

Couple points to highlight from this interview of Colonel Lawrence Wilkerson (former Chief of Staff to Colin Powell):

1. As I always blog that there's no such thing as "democracy" in this world. Many countries, & billions of people either say that "they are living in a democratic country" or "they are fighting for democracy", but everyone of them think "democracy" is merely voting in "free & fair elections". That's not democracy. Democracy is not merely about voting in elections, but it's much more. Democracy is when the voice of the majority of a nation are heard on major internal & external issues; issues which are affecting a country.

But, as this interview proves once again, that the wealthy people of United States, for instance, are controlling the government, & hence, all the major decisions American government makes; regardless of it's domestic or foreign matters. As Larry Wilkerson says, that "the oligarchs ... buy the president and thus buy American foreign policy." He also gives example of this is similar to what happens in Putin's Russia. I completely agree with it. Many Americans will of course disagree with it, but it's the bitter truth. There's no "democracy" in US, since it doesn't matter what the general public needs or wants, it's the rich elites who get what they want.

2. Another point I frequently make in my blogs is that arms sales around the world, ironically, by the permanent members of UN "Security" Council, create more chaos & deaths around the world than brutal dictatorships.

Such international arms manufacturing companies as Lockheed & Raytheon vigorously lobby politicians in US, UK, Canada, France etc. to allow them to sell international arms & weaponry to such countries as Saudi Arabia, China, Israel, Nigeria, UAE, Bahrain etc. Then, these countries have to find any excuse whatsoever to use that stockpile, & hence, wars start. Poor people die in large numbers in neighbouring countries like Palestine, Yemen, Syria etc.

But who benefits from all these arms & weapons transactions? Definitely not Saudi Arabia, UAE, or Nigeria. These countries are importing these arms & hence, they are indebted to their Western counterparts. But companies like Lockheed & Boeing, & of course, those politicians who pushed their countries' foreign policies towards more belligerence & wars, benefit tremendously. As Larry Wilkerson says in regards to the re-emergence of another potential Cold War era between US & Russia that "this group alarms me probably more than any other in the world, and particularly my own country--that is interested in a constant state of war, or as near a constant state as possible, because they sit behind all the belligerents and make money."

So does the majority of American or Russian public want their countries at each other's throats? Or how about the new Asian pivot of America? Does the majority of Americans want US & its Asian allies (Philippines, Japan etc.) banding together against China? I don't think so. But do they have any say in this matter? Of course not. So is this "democracy" when the general public suffers because their tax dollars, which they are paying just so they can get better public infrastructure, education, healthcare etc., are actually being used towards military hardware & a perpetual war against the world?

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PAUL JAY, SENIOR EDITOR, TRNN: Larry, you were right at the center of the State Department. Back when you were there, and then sort of extrapolating to today, who runs U.S. foreign policy? 'Cause there's this sort of feeling there's this grand design and, grand machinations and chessboard-playing and all of that. Where are the centers of power for making U.S. foreign policy? 'Cause it seems to me it's not just the president.

COL. LAWRENCE WILKERSON, FMR. CHIEF OF STAFF TO COLIN POWELL: I think you're right. And part of what I teach--and I teach post-World War II policy more than anything else, but we have to go back into the past to understand that policy. Part of what I teach is how since World War II and the acquisition of this enormous power by what in essence is the new Rome in the world, the United States, part of the shift that takes place in manipulating and managing that new power is a centralization of foreign policy away from the old cabinet places where it used to take place, most prominently through the Foreign Service and through the secretary of state, to the White House and to the creation of the 1947 National Security Act, the National Security Council. So if you ask me pro forma where does it exist today, it exists more in the National Security Council and its staff than it does anywhere else, certainly anywhere else in the cabinet. So what I'm saying is it's centralized in the White House.

But what does that mean in terms of, I think, your real question, who's behind the White House, and who's therefore behind U.S. foreign policy, more or less? I think the answer today is the oligarchs, which would be the same answer, incidentally, ironically, if you will, for Putin in Russia, the people who own the wealth, the people who therefore have the power and who more or less ... buy the president and thus buy American foreign policy. ...

JAY: There seems to also be centers or circles of power. For example, Lindsey Graham and John McCain seem to represent an alignment of forces. It seems that the fossil fuel industry, military-industrial complex--and certainly not that they are exclusively backing McCain and Graham. They have their hooks into both parties and to--they're kind of a hidden hand throughout much of American politics. But it seems to be a somewhat distinct center. And then Wall Street seems to have even--although it's not monolithic, it's a distinct center of power. What's the actual dynamic? Like, how do they influence National Security Council decisions? How do these processes take place? Where do the discussions take place?

WILKERSON: I think it's probably less fundamental and less precise, and therefore less in the interest, often, of the United States than you might think or that the American people might think. Because of what you've just suggested, that there are many poles in American foreign-policy, from the Congress to even the Supreme Court, to the White House, to the State Department, the Foreign Service, and so forth, it's a very complex mix, and it's rarely ever articulated in a way or manifests itself in a way that good leadership can control it, handle it, and manage it toward a real strategic objective. That's part of our problem in the world today.

But I would submit to you that certain oligarchs, anyway, big food, big pharmacy, big energy, oil, real estate, things like that, they like it this way because then they can flow into the void in the particular region or function or both that they want to control, that they want to manipulate, and do so effectively, whether it's subsidies from the federal government for oil companies or whether it's massive efforts by the government, clandestinely or otherwise, to influence someone like Monsanto being able to operate in Latin America and do the things that it does. So it's incredibly complex, difficult to analyze from a strictly governmental standpoint.

But when you start probing and you start analyzing, you begin to discover that there are centers in this mess, if you will, that are getting what they want. And what they want is basically wealth and power. And they then turn that wealth and power back into political contributions, which now almost have no limits, no constraints on them, and they influence people like John McCain and Lindsey Graham and Bob Menendez and Chuck Schumer and Barney Frank when he was in there and so influential with the banking committee, and they get what they want in terms of legislation that oftentimes I'm convinced the legislatures do not even realize they're doing. They don't understand that they're fulfilling this objective of a particular oligarch or conglomeration of oligarchs. And yet they're doing it, and they're doing it because they are well paid for doing it, in the sense that their PACs are flush and full and they get reelected.

Is John McCain motivated entirely by this? Is Bob Menendez motivated entirely by this? Of course not. They're not intellectual giants, and they don't spend lots of time analyzing this situation in the complex ways that we do. So they think they're actually fulfilling their principles and bending over a little bit to accept the money and the cash necessary to do that. So that's how the system works. That's not even half the explanation, but that's how the system works. And, incidentally, it has worked that way for a very long time, I would say probably since about Andrew Jackson coming into the White House after we'd really established ourselves.

JAY: I think it's a really interesting point, because those of us that sit back doing this geopolitical analysis--and we look at what are the objective interests of the powers and what are the objective interests of the different parts of these powers, and then we kind of think there's people making policy the same way, but they kind of ... what's the crisis that I'm going to deal with today? How am I going to make money out of this tomorrow? It seems to me that with the odd exception of ... the Brzezinskis and these type of people that seem to think in a broader way--most of it seems to be what is in it for me today, the hell with tomorrow, & not so conscious of the forces. I mean, one of the things that always hits me is when you look at the predictions of who would win World War II. Most of what I've seen is by 1940, '41, it was pretty clear Hitler's going to lose. Now, if you're in the German monopoly capitalist class doing analysis, you'll say, well, this is not leading to anything good for us; why aren't we bailing? But the forces of refusing to accept the reality of it were far too strong.

WILKERSON: Well, that's a good point. I would say--and I don't subscribe to conspiracy theory normally, but I would say there were forces behind that shadow, if you will, who were doing quite well, Swiss, German, American, and others who were more or less feeding off the conflict and got very wealthy feeding off the conflict, just as they did off World War I, even more dominantly with respect to the United States in particular, German reparations and so forth. We made a ton of money off of World War I, and we really didn't contribute a whole lot, if you'll remember. We were only really there substantially for a very short period of time, roughly April 1917 to Armistice Day. So there is a group that's interested in this kind of thing--and this group alarms me probably more than any other in the world, and particularly my own country--that is interested in a constant state of war, or as near a constant state as possible, because they sit behind all the belligerents and make money.

JAY: And there seems to be sectors of the economy that profit from volatility, brinksmanship, geopolitically, which leads to massive arms sales. And I've mentioned before on air that I was at this dinner of this organization that does military advice and policymaking to Middle Eastern countries, mostly about arms purchases, and of course who backs the organization's advice is Lockheed Martin and Boeing and, all the military manufacturers. So the brinkmanship sells weapons. And then, of course, Wall Street also does great in volatility, 'cause--especially if you're one step ahead, which the insiders are. But then there's other parts of the economy. ... if you're trying to sell stuff to the American public, massive volatility is not particularly good for you.

WILKERSON: No, it's not. The real economy in this country, though, has shrunken so dramatically since World War II--I show the stats to my students, and I usually use the CIA stats. I can't remember them precisely right now, but I can give you general idea. In 1945, we were about 25% or so services and about 60% or so what was called heavy, medium, or light industry, manufacturing mostly. It's completely the opposite today. It's about 11% to 12% manufacturing, and the latest stat--and this is a precise number from the CIA--76% services. So you don't have the same real economy, if you will, and you don't have the same GDP reflective of that real economy. And that's a very different economy to wage war under than the one we had when we entered World War II, for example. Very different. And you could say in some respects this shadow behind the power that makes money off war, period, no matter who's the belligerent, makes money off that volatility now, especially with computers that are able to assist them in doing so, like currency manipulation, for example, or just general speculation. With computers you can do it at lightning speed and you can do it in a nanosecond, and you can make billions in that nanosecond, and you don't care about what you're doing to the real economy, because you're raking in the dough.

JAY: Has the American elite, including that section which profits on near war and profits on actual war--but in general has there come to a conclusion now that ... if you want a really good Cold War, a really good arms race, then Russia's the right one to do it with?

WILKERSON: That's an interesting speculation. ... I think what's happening is people are beginning--people, these people I'm talking about, who really understand the dynamics in the world--and some of those are in the White House, no question about it. Some of them are people bearing the burden of public policy. No question about it. ... what's happening ... with Ukraine and with Russia, of course, is what you just said: hey, ... we yearn for the solidity and the stability of the Cold War, and my God, Putin's giving it back to us. Let's accept the offer.
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JAY: ... Is this coming from the Obama administration? Or is it coming from--and this is where I get to who makes U.S. foreign-policy--how many lines of this kind of policy exist that kind of circumvent the White House and the National Security Council?

WILKERSON: I don't think they necessarily circumvent it. I think they are at times in tension within it, but I don't think they necessarily circumvent it, like, for example, Dick Cheney did in the Bush administration. I think what you have is you have people like Samantha Power and Susan Rice who are right-to-protect-people. This is very traditional. This is messianic Christianity manifesting itself in a secular way. This is we have to bear the brown person's burden, we have to go fix these problems in the world. So this is not something new. It's just got a more sophisticated manifestation in 2014.

And it makes a difference. It made a difference in Somalia when Madeleine Albright and Boutros Boutros-Ghali were pushing for state building in Somalia, when any anyone with a brain could have seen impossible task, you're going to fail, and you're going to have to leave ignominiously, which is exactly what Bill Clinton had to do. It manifested itself in the Balkans and in Kosovo. Two days of bombing and Milosević will cave. 78 days later and the threat of ground forces and Milosević finally caves.

So there's that strain, a messianic strain that's always been there.

Then there is a strain of real power, realpolitik. And that's people who are actually trying to achieve American interests, whatever they may be, and the way they think they should be achieved. I would put President Obama in that category.

And then you've got people who are closet neoconservatives, who really do feel that America has to assert itself periodically at a minimum in order to teach the rest of the world that it can't climb the hill on which America is the king.

JAY: But Ukraine is setting up we have to teach Putin a lesson, except you helped create the conditions where you have to teach Putin a lesson ... and more or less play into Putin's hands.

WILKERSON: Well, this is a chess game, to a certain extent, played on multiple levels simultaneously. And when you have a person like Putin with the capabilities that Putin has--I would suggest to you that the KGB and the GRU or NKVD, whenever you want to talk about, were probably the best intelligence people in the world for a long time. When you've got those kind of capabilities, you can do things, and particularly when you're operating on interior lines.

I'll take you into a military jargon here. Interior lines means I've got a border with you and I can move my tank 15 feet and kill you. But I am the person going to contest that tank, and I'm 10,000 miles away, and I've got to fly my tanks into your country before I can even take you on. The advantage of operating on those interior lines is really, really huge. It'd be like us doing something in Mexico and Russia trying to object or us doing something in Cuba and Russia trying to object. It's really difficult. You can do it, but it's really difficult.

So there are a lot of things operating with respect to Crimea, Ukraine, Odessa, and so forth, Georgia, right now that play into what some of these people, like ... John McCain, Lindsey Graham, would love to see happen, and that is the development of a new Cold War, a new Cold War with old antagonists.
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WILKERSON: ... When Jim Baker and George H. W. Bush really accomplished what I think was one of the real diplomatic feats of the end of the 20th century, the reunification of Germany, whether we agree with that or not, they did it, and they did it without a shot being fired. It was wonderful to watch H. W. Bush do that, and Jim Baker. But one of the reasons they could do it was because they assured Gorbachev, and later Yeltsin, that NATO would be quiescent, it wouldn't move, it wouldn't threaten Russia. In fact, I was there when we told the Russians that we were going to make them a member -- observer first and then a member and so forth.

Well, that fell apart on the fact that they perceived right quickly that we weren't really serious. And then we start, under pressure from Lockheed Martin and Raytheon and others, to sell weapons to Poland and weapons to Georgia and weapons to Romania and everybody else we could bring into the fold. Under those pressures and others, we started to expand NATO and stuck both our fingers in the Russian eye, so to speak, immediately. It's clear to me why Putin responded in Georgia and why he's now responding to Crimea in Ukraine. This is what great powers do when they get concerned about their so-called near abroad.
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Wednesday, March 30, 2016

Baltimore Residents & Workers voice outrage over plans to privatize public housing

I liked this piece from The Real News Network about the rising homelessness, & decreasing numbers of affordable public housing, in US. Here, they are discussing homelessness in one of the American cities, Baltimore, Maryland.

As Mr. Singer explains in the piece that American government has been privatizing public housing since 1974 & now, under the Obama administration, "60,000 public housing units around the country are being sold to private developers, most of them for-profit developers, & we the taxpayers are subsidizing their profits." All this is happening when "homelessness is at the highest peak it's been since the Great Depression of the '30s." Is this democracy when the public taxes are subsidizing the rich, & those same poor public are becoming homeless?

Some 40,000 people are homeless in Baltimore. That's just 1 American city & it's not even considered a large American city by any measure. Homelessness has increased multiple folds in large American cities; New York, Chicago, Los Angeles, Atlanta etc. & this is all happened within the last decade.

Poverty among Baltimore kids are almost 35%; that's almost 1 poor child in 3 children. Poverty is constantly increasing in US. The young generation is moving down south to have some sense of accumulation of wealth through cheaper real estate & taxes. But, the taxes are going up, & wages are going down, overall, & those taxes are not helping the poor public, but the rich keeps getting richer through tax cuts, subsidized public assets being turned private assets, & hence, the inequality keeps increasing.

Where's the democracy in the largest self-anointed "democratic" country in the world where poor can't even get a decent place to call it a home, & keeps becoming poor everyday, while the rich elites become rich at the expense of the poor public?

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JAISAL NOOR, TRNN PRODUCER: In part one of this story, we looked at Baltimore's plans to sell about 40% of its public housing stock to private developers & why some residents, workers, & advocates oppose these plans. But due to declining federal contributions to public housing, many cities face a shortfall in funding. The Department of Housing & Urban Development, HUD, puts the shortfall at $27 billion USD.

Baltimore says it can raise $300 million USD of the $800 million USD it needs by selling some of its properties to private developers.

To understand how America's public housing crisis got so bad in the first place, we spoke to Jeff Singer. He's an instructor at the University of Maryland & a longtime Baltimore public housing advocate.

NOOR: So there's a public housing crisis around the country. How did it get to that point? And start under Bill Clinton to give people a little background in how things got so bad.

JEFF SINGER, CITY ADVOCATES IN SOLIDARITY WITH THE HOMELESS: Well, we can go back even a little farther to 1974, when Richard Nixon created the first privatization of public housing, what we call the Section 8 certificates. And the more money that went to Section 8 certificates, the less money that went to public housing. Section 8 was a way to give private landlords money to house people who were poor. So from 74 until now, we've seen a decline in the amount of federal funds directed toward public housing & an increase in--a small increase in the amount that's directed toward profits.

The program we're talking about here tonight is the efflorescence of that. It's actually privatizing the housing that we built for ourselves & making sure that people can make profits from it. And they don't mix well together. Affordable housing & profits are antithetical.

NOOR: And so what happened starting under the Clinton administration?

SINGER: What happened out of the Clinton administration was a couple of programs & policy changes that are very important. One policy change was that it is now illegal to build additional public housing with federal funds. Can you imagine that? In 1949, Congress declared that it is the goal of the US to make sure that every resident here has safe, decent, affordable housing. But under Bill Clinton, that language was stricken from the law & the number of public housing units was capped by law. So that was one very important issue. Another was that he continued the defunding of public housing. There was a law that required that whenever a public housing unit was demolished, a new unit had to be created. He eliminated that as well. So this has accelerated the demise of public housing.

NOOR: RAD program is happening under the Obama administration, a Democratic administration.

SINGER: Yes. Well, as Huey Long said, they may be Democratic waiters or they may be Republican waiters, but they're serving food from the same Wall Street kitchen. This RAD program was created actually in 2003 by the Bush administration, but they couldn't get it implemented. So now the Obama administration is implementing it with a vengeance, & 60,000 public housing units around the country are being sold to private developers, most of them for-profit developers, & we the taxpayers are subsidizing their profits. At the same time, homelessness is at the highest peak it's been since the Great Depression of the '30s, & the secretary of the federal Department of Housing & Urban Development himself says we're in the worst rental housing crisis in our history.

NOOR: How bad is it here in Baltimore?

SINGER: Well, we don't know how many people experience homelessness every night in Baltimore, but we counted over 4,000 people two years ago per night. Over the course of a year, that's probably 40,000 people. So we know it's pretty bad. There are encampments all around the city, the shelters are full every night, & people have nowhere to go.

NOOR: And there's a lot of people in risk of losing their housing as well.

SINGER: Well, they are. And one of the aspects of this new RAD program is that it's going to use federal tax credits to create profits for these developers in public housing. But that means that those federal tax credits will no longer be available to build new affordable housing. ...

NOOR: Baltimore is a pilot city for the RAD program. Why will it be important for people to be engaged here? What kind of impact will what happens here have on the rest of the country, especially when it comes to tenants & the union workers that are being affected by this being mobilized & getting their voices out?

SINGER: I think we have an opportunity here to do something very important, & that is to combine the forces & the interests of the tenants with the forces & interests of the workers. It is outrageous that the federal government has approved a plan that's going to fire 200 workers, workers who had decent wages, job protections, & benefits. The middle class that--the president is talking about growing the middle class; well, now we're destroying part of the middle class. So by combining the interests of the tenants & the workers & the advocates & the neighborhood folks, we can create a really important force, & that force is devoted toward affordable & fair development policies.

NOOR: And so part of the drive for this you can kind of say comes from the perception that public housing is failing. And so why is it important to talk about the mismanagement & the underfunding of public housing to contextualize that?

SINGER: ... The federal budget for the Department of Housing & Urban Development was the equivalent of $90 billion in 1980, & it is now $42 billion. It's less than half of what it was. So they have purposefully for 40 years underfunded public housing, both the capital costs ... & the operating costs. Now the City of Baltimore gets only about 75% of what they need to run public housing, & they get a hundredth of what they need to maintain it.

NOOR: What else is important for people to know about the future of public housing in America, in Baltimore today?

SINGER: Well, public housing is the sector of housing that keeps housing permanently affordable for the very large number of folks whose income is low. And we have a poverty rate in the US of about 15%. In the City of Baltimore, it's over 20%. Among children in Baltimore it's 35%. None of those folks can afford housing through the market. Public housing is the best way to keep them safe and secure.

In other civilized countries, public housing is a very large part of their housing sector. In most European countries, it's 20% of all the housing. In the city of Vienna it's 60% of all the housing is public housing, meaning it's owned by all the people & it's available to people who need it. In the US, it's 1% of our housing, & that's diminishing.

Thursday, March 24, 2016

The losing game of publicly financed sports venues

Another great article on how taxes taken from hard-working public are used for something from which most of the general public will never get any meaningful benefit, & it reduces the money a municipal / provincial / state / federal government has to put it towards a better cause. Governments of all levels in the Western world are crying for more money & are putting in more austerity measures to cut expenditures & increasing taxes.

All the while, these same governments are spending the few money they have on things that are completely useless. These monies could be used for building more affordable housing for homeless & hence, reduce homelessness, or improving infrastructure (water pipelines, public transit, roads, cheaper & sustainable energy), which can also create jobs, which in turn, creates more tax revenue for the government, or simply providing or increasing funding for any number of social causes & NGOs.

But nooooo. The taxes from hard-working public, who itself, is trying to scrimp & save every nickel & dime by buying unorganic, cheap & unhealthy food, for instance, are being used to built expensive stadiums, which ultimately benefit the wealthy owners of sports franchises. They themselves pay much less in taxes but take full benefit of other people's taxes.

But then again, as the article asks that are governments merely stupid to bend to the demands of these wealthy individuals & then answers right away that sports subsidies are a political winner. So who is to blame here? Government or the public. The same public who will give their hard-earned money to a wealthy individual & wealthy players, & gets a paltry return for its own investment. Ironically, while the owners & players are swimming in cash & laughing how they have duped the public, the public is also not only cheering "their team" (who will leave the city as soon as it bleeds the city dry) but also buying expensive merchandise with their own money & still giving their taxes. I blame the public who claims to have open eyes & ears & have common sense, but then take such a stupid step.

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http://www.theglobeandmail.com/report-on-business/the-losing-game-of-publicly-financed-sports-venues/article25563294/

The people of Quebec City & Edmonton are falling prey to one of the oldest con games – the notion that spending public money on pro sports venues is a sound investment.

Facts don’t seem to matter in this game. And your city could be fleeced next.

Stacks of independent research over many decades have shown that building a stadium or luring a new franchise does little for a city’s economy. They typically don’t generate significant new tax dollars, jobs or growth. In most cases, the money would be more wisely spent on badly needed public infrastructure, such as roads, transit or schools.

And yet, governments serially ignore the evidence & continue to shower subsidies on team owners & their media partners.

In Quebec City & Edmonton, governments are currently sinking hundreds of millions of dollars into new arenas. In Quebec City’s case, the aim is to attract an NHL franchise. The rationale in Edmonton is to keep its team, the Oilers, from leaving.

Gobs of taxpayer cash will similarly be needed if Montreal Mayor Denis Coderre gets his wish of bringing professional baseball back to the city. The price tag for buying a franchise & building a new baseball stadium – presumably, a domed one – will top $1-billion. And it won’t happen unless taxpayers pick up a big chunk of the tab.

So why are governments so gullible?

The simple answer is that sport subsidies are a political winner.

They’re sold as investments in the economy. But it’s really about civic pride, the thrill of the game & cheering for the home team.

Montrealers, for example, overwhelmingly support the idea of bringing baseball back to their city more than decade after the Expos left for Washington, D.C., according to a recent Abacus Data poll. Nearly 90% of 500 residents surveyed expressed varying levels of support, ranging from lukewarm to strong. Just 12% are against it. Roughly 8 out of 10 respondents said Major League Baseball would be good for the economy & generate more taxes for the city.

The reality is quite the opposite, according to numerous independent economic studies conducted over several decades in North America.

The weight of economic evidence … shows that taxpayers spend a lot of money and ultimately don’t get much back,” according to a 2001 study, “Should Cities Pay for Sports Facilities?” for the Federal Reserve Bank of St. Louis. “And when this paltry return is compared with other potential uses of the funds, the investment, almost always, seems unwise.”

The subsidies rarely stop once the venues are up & running. Billions of dollars a year in hidden subsidies flow to existing sport venues, according to a 2012 book by Judith Grant Long, now an associate professor of sports management at the University of Michigan. In her book, Public-Private Partnerships for Major League Sports Facilities, Ms. Grant Long found that taxpayers are subsidizing 78%of the average professional sports facility in Canada & the US.

Earlier this year, US President Barack Obama moved in his budget to close down one financial vehicle that has encouraged subsidies by barring the use of tax-exempt bonds to finance professional sports facilities. In Canada, governments often fund the projects directly from their own coffers, tapping into lower government borrowing costs.

The real story, however, may be that the main beneficiaries of government largesse are team owners.

Quebec City’s $400-million Centre Vidéotron was built with a combination of municipal & provincial government money. It's ... a lure for an eventual NHL franchise sought by Videotron owner Quebecor Inc., controlled by Parti Québécois Leader Pierre Karl Péladeau.

The cost of Edmonton’s $480-million Rogers Place arena, due to open in time for the 2016-17 NHL season, is being split between the city & wealthy team owner Daryl Katz, who had earlier threatened to move the Oilers to Seattle.

Mr. Katz, who also owns the Rexall pharmacy chain, is now poised to cash in with a massive mixed-used residential, office & entertainment development he’s planning for the surrounding area, dubbed “The Ice District.” The $2-billion project will include 1,000 residential units, 1.3 million square feet of office space in skyscrapers that will rank among the tallest buildings in Western Canada, a luxury hotel & a public plaza with an outdoor skating rink, casino, restaurants & stores.

The private development wouldn’t make much sense without the subsidized Rogers Place as its anchor. And businesses elsewhere will lose as customers inevitably migrate to the new entertainment area, making the deal a wash on the city’s tax ledger.

This losing scenario will play out in your city too unless someone stands up and says, enough.

Thursday, March 17, 2016

The Interview: Nobel laureate & economist Joseph Stiglitz

What I liked from this interview is about a little discussion on economic & financial inequality among the public. Politicians & economists of the world are trying to increase demand, & hence, GDP, but they are not trying to resolve the root problems of the recession & slow recovery, & keep trying to put in place harsh austerity measures for the poor public & tax cuts for the rich. These measures are counter-intuitive & decrease the national demand & hurt the national & international economies even further.

The tax cuts for the rich doesn't entice the rich to take that extra cash & increase the minimum wages or provide more benefits to their workers, & instead, they invest in their private yachts, sports arenas, sports clubs, racing animals, real estate, stock portfolios, or simply horde it all away in tax havens. The harsh austerity measures, coupled with more taxes in some cases, for the poor public reduce the free cash available to them, for discretionary purchases, & in many cases, even for needy purchases, which in turn, reduces aggregate demand in the country.

These measures create economic, financial, & social inequality. People cannot move up the social ladder, since they don't have enough money, but they can definitely move down, which is happening all over the world. The young populations of the world are seeing their dreams crush after spending a fortune on their education & building that dream where they would be owning their own homes, have families, build up their wealth, & finally, retire to a relaxing future. Instead, they are seeing their degrees pretty much worthless & jobs that pay so little that owning homes & building up wealth is becoming a very far-fetched dream. All the while, these same poor youths are also seeing people with no discernible talent making a lot of money, for instance, celebs like the Kardashian family or the rich billionaire kids of new billionaires in Europe, China, India, & Russia.

That inequality starts to breed hatred in these young minds. That hatred then tries to find an outlet in terms of violence; be it gun violence in America or Canada or gang warfare in Latin America or refugee crisis of Europe or ranks of terrorist groups like ISIS & Al-Qaeda in Middle East & Africa swelling up with young Westerners.

So, the root problem of violence in Middle East, Latin America, Europe, & in North America are all due to inequality all over the world. If only politicians & economists try to resolve this one major problem, we won't be having these fears of recessions hounding us all the time, & violence would definitely be down all over the world, which in turn, would save billions in arms & weaponry purchases, safety & security apparatus, & of course, millions of lives around the world. Those billions of money can then be used towards helping students in post-secondary institutions with their tuitions, improving infrastructure, creating more companies with subsidies, for instance, for green economies, which in turn, create more well-paying jobs, which in turn, would increase aggregate demand & reduce inequality. If only ... !!!

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Nobel laureate Joseph Stiglitz, a professor of economics at Columbia University, has written extensively about inequality in America, including his latest book, The Great Divide: Unequal Societies and What We Can Do About Them. He’ll be a visiting scholar in the new Lind Initiative U.S. Studies at the University of British Columbia this fall.
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Q: You’ll be lecturing at UBC on global inequality. Why should people be worried about inequality?

A: Inequality is very related to the problems we’re talking about. People at the top spend less money than those at the bottom so when you have redistribution toward the top, aggregate demand goes down. Unless you intervene, you’re going to have a weak economy unless something else happens. That something else could be a bubble. The US tried a tech bubble & a housing bubble, but those were not sustainable answers. So I view inequality as a fundamental part of our macroeconomic weakness. There have always been two theories about inequality. One is that it reflects just deserts. The other is that there are large elements of exploitation & inequality of opportunities. The evidence is overwhelmingly that the increase in inequality is associated with those negative factors. If it were all social contribution, then when the top did better, they would be contributing to everybody’s well-being. That trickle-down hasn’t happened. We’ve seen median income, people in the middle, actually worse off than they were 25 years ago.

Q: You’ve said that inequality is fraying the bonds that hold the US together. That sounds scary. Is it that bad?

A: Oh, I think it is. [It’s behind] a lot of what you see as dysfunctional behaviour & extremism. Particularly, young men are angry. You know, how can people like Donald Trump be so politically successful, running ahead in the Republican primary with no policy other than a sense of anger? What he’s been doing is pointing out the corruption in our system. I mean, Jeb Bush has Florida put $250 million of pension funds into Lehman Brothers & then when he leaves as governor he gets a job at Lehman at a salary of $1.3 million—those things resonate with Americans. The system looks broken.

What I argued in The Great Divide is that societies can’t function without trust, both politically & economically. And in the context of politics, what you see increasingly is young people not voting. The voter turnout in the last election was the lowest it’s been since the Second World War, when a lot of people were off fighting. In 2010, voter turnout among young people was 20%. Americans like to say we’re fighting for democracy, & yet young Americans have come to the view that democracy doesn’t deliver.

Q: It’s been 4 years since you wrote, “Of the one per cent, by the one per cent, for the one per cent,” which gave the Occupy movement its slogan “We are the 99 per cent.” Is inequality getting more attention now?

A: Very much so. You see Hillary Clinton has emphasized it in her campaign, but even the Republicans have said inequality is the major issue. To me that’s one of the optimistic things, that it’s finally moved to the top of a political agenda. The other optimistic note is that you see, across the country, 70% support for increasing the minimum wage. Congress can’t get it through because it’s dysfunctional & so we’re having strong grassroots movements to raise it, in Seattle, Los Angeles, New York. The grassroots people are saying our national government is broken; we have to do something about it.
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Q: What about Canada? Do you think we have an inequality problem?

A: Oh, yes, clearly. But it’s in the middle of the OECD pack. It’s not as good as the Scandinavian countries. It’s not been doing as good a job as it did in the past in taking inequality of market income & reducing it. Also, you are a natural resource economy, & natural resource economies, with a couple of exceptions, tend to be very unequal. You can, in principle, tax the natural resource rents at very high rates & use that to create a more equal society. The country that’s been most successful at that is Norway. The more typical countries are those in the Middle East where a small group seizes those resources, uses it to buy arms to make sure that they can oppress the remainder, & you get these great inequalities. So Canada is among the better performing of the natural resource economies, but it’s still not up to the best performing.

Q: In Canada the share of income going to the rich has been falling for several years. We have better social mobility than in the US. Why is Canada better on inequality?

A: You have a more egalitarian education system, & I think your health care system is so much better than ours. A third aspect that clearly is part of American history is our racial issue. But the problems of inequality are even within the white group. 20% of American children grow up in poverty, & that means they get inadequate nutrition, inadequate health care, & because we have a very local education system, they get inadequate access to education. With those as a starting base, you perpetuate inequality. That’s why, here in New York, Mayor de Blasio has made a big deal of trying to focus on preschool education, because by 5 years old, there are already huge differences. We’ve finally begun to recognize it.
...

Sunday, February 28, 2016

When it comes to war in space, US has the edge

This article gives us a little taste of how the world's major powers, financially & militarily, are in a race to spend trillions upon trillions to conquer their global rivals in space & show to the world how they "won" the race. Ironically, those trillions are coming from people taxes; the same taxes people of a country pay, voluntarily or involuntarily, to receive basic necessities to fulfill their basic human needs.

Trillions of those taxes are being spent on something which most of the world's population will never use. All these space military hardware is not helping anyone improve billions of lives right here on Earth.

We humans want to take a giant leap towards Moon settlement & Mars colonization, but we forget very easily that billions of humans are living a miserable & wretched life right in our backyard, right here on this very planet.

Our fellow humans are dying of thirst because water is becoming a shortage, but trillions are not being spent to come up with cheap technologies to solve this impending crisis.

Our fellow humans are dying of hunger or suffering from eating unhealthy foods because feeding everyone in the world a healthy diet would require billions in funding, but billions are not being spent on research to improve agriculture & food accessibility for billions of poor.

Our fellow humans are living without a roof over their heads & homelessness is only increasing. But billions are not being spent on building affordable housing to provide a decent living space to our own fellow human beings.

Similarly, there are thousands more issues where trillions can be spent easily to improve human & animal lives; fatal diseases, climate change, animal welfare, sustainable energy etc. & make our little planet a living utopia for all. But, instead of improving lives for billions on this little planet of ours, trillions are being spent, of people's own money, on advancing technologies to destroy more lives & wreck more havoc on this little planet.

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Quietly & without most people noticing, the world’s leading space powers — the US, China & Russia — have been deploying new & more sophisticated weaponry in space.

Earth’s orbit is looking more & more like the planet’s surface — heavily armed & primed for war. A growing number of “inspection” satellites lurk in orbit, possibly awaiting commands to sneak up on & disable or destroy other satellites. Down on the surface, more & more warships & ground installations pack powerful rockets that, with accurate guidance, could reach into orbit to destroy enemy spacecraft.

A war in orbit could wreck the delicate satellite constellations that the world relies on for navigation, communication, scientific research & military surveillance. Widespread orbital destruction could send humanity through a technological time warp. “You go back to World War Two,” Air Force General John Hyten, in charge of US Space Command, told 60 Minutes. “You go back to the Industrial Age.”

It’s hard to say exactly how many weapons are in orbit. That’s because many spacecraft are “dual use.” They have peaceful functions & potential military applications. With the proverbial flip of a switch, an inspection satellite, ostensibly configured for orbital repair work, could become a robotic assassin capable of taking out other satellites with lasers, explosives or mechanical claws. Until the moment it attacks, however, the assassin spacecraft might appear to be harmless. And its dual use gives its operators political cover. The US possesses more space weaponry than any other country, yet denies that any of its satellites warrant the term.

When 60 Minutes asked the Air Force secretary whether the United States has weapons in space, Secretary Deborah Lee James answered simply: “No, we do not.”

Still, it’s possible to count at least some of the systems that could disable or destroy other satellites. Some of the surface-based weaponry is far less ambiguous & so easier to tally. Even taking into account the difficulty of accurately counting space weaponry, one thing is clear: The US is, by far, the world’s most heavily armed space power.

But not for a lack of trying on the part of other countries.

New Cold War in space

Earth’s orbit wasn’t always such a dangerous place. The Soviet Union destroyed a satellite for the last time in an experiment in 1982. The US tested its last Cold War anti-satellite missile, launched by a vertically flying F-15 fighter, in 1985.

For the next 3 decades, both countries refrained from deploying weapons in space. The “unofficial moratorium,” as Laura Grego, a space expert with the Union of Concerned Scientists, described it, put the brakes on the militarization of space.

Then in 2002, President George W. Bush withdrew the US from a treaty with Russia prohibiting the development of antiballistic-missile weapons. The move cleared the way for Bush to deploy interceptor missiles that administration officials claimed would protect the US from nuclear attack by “rogue” states such as North Korea. But withdrawing from the treaty also undermined the consensus on the strictly peaceful use of space.

5 years later, in January 2007, China struck one of its own old satellites with a ground-launched rocket as part of a test of a rudimentary anti-satellite system. This scattered thousands of potentially dangerous pieces of debris across low orbit. Beijing’s anti-satellite test accelerated the militarization of space. The US, in particular, seized the opportunity to greatly expand its orbital arsenal.

US companies & government agencies have at least 500 satellites — roughly as many as the rest of the world combined. At least 100 of them are primarily military in nature. Most are for communication or surveillance. In other words, they’re oriented downward, toward Earth.

But a few patrol space itself. The US military’s Advanced Technology Risk Reduction spacecraft, launched into an 800-mile-high orbit in 2009, is basically a sensitive infrared camera that can detect the heat plumes from rocket launches &, presumably, maneuvering spacecraft. It then can beam detailed tracking data to human operators on the ground.

The risk-reduction satellite works in conjunction with other spacecraft & Earth-based sensors to keep track of Earth’s approximately 1,000 active satellites. The telescope-like Space-Based Space Surveillance satellite, launched in 2010, “has a clear and unobstructed view,” according to an Air Force fact sheet, “of resident space objects orbiting Earth from its 390-mile-altitude orbit.”

Resident space object” is military speak for satellites.

A network of around 30 ground radars & telescopes complements the orbital sensors. Together, these systems make “380,000 to 420,000 observations each day,” Space Command explains on its Website.

Observing & tracking other countries’ satellites is a passive & essentially peaceful affair. But the US military also possesses at least 6 spacecraft that can maneuver close to enemy satellites & inspect or even damage them.

In 2010, the Air Force launched its first X-37B space plane. A quarter-size, robotic version of the old Space Shuttle, the X-37B boosts into low orbit — around 250 miles high — atop a rocket but lands back on Earth like an airplane.

The two X-37Bs take turns spending a year or more in orbit. Officially, the Air Force describes the maneuverable mini-shuttles as being part of “an experimental test program to demonstrate technologies for a reliable, reusable, unmanned space test platform.” But they could also attack other spacecraft.

The X-37Bs “could be used to rendezvous and inspect satellites, either friendly or adversarial, and potentially grab and de-orbit satellites,” the Secure World Foundation, a space advocacy group, pointed out. The group stressed that the feasibility of the X-37Bs as weapons is low because the mini-shuttles are limited to low orbits & because the US operates at least 4 other maneuverable satellites that are probably far better at stalking & tearing up enemy spacecraft.

These include 2 Microsatellite Technology Experiment satellites that the military boosted into low orbit in 2006. The MiTEx satellites are small, weighing just 500 pounds each. This makes them harder for enemy sensors to detect — giving them the advantage of surprise in wartime.

The two Geosynchronous Space Situational Awareness Program satellites are much bigger & higher up. From their stationary positions 22,000 miles above Earth, these spacecraft — in orbit since July 2014 — monitor other satellites & can, according to the Air Force, “maneuver near a resident space object of interest, enabling characterization for anomaly resolution and enhanced surveillance.”

Maneuverable space planes & satellites are one way of attacking enemy spacecraft. But there’s an older, less subtle method — blasting them out of space with a rocket.

In late 2006, an US spy satellite malfunctioned shortly after reaching low orbit. In early February 2008, the Pentagon announced it would shoot down the dead spacecraft. Officially, Washington insisted that the anti-satellite operation was a safety measure, to prevent the defunct craft’s toxic fuel from harming someone when the satellite’s orbit decayed & it tumbled to Earth.

But it appeared to more than one observer that China’s 2007 anti-satellite test motivated Washington’s own satellite shoot-down. A new Cold War was underway, this time in space.

On Feb. 20, 2008, the Navy cruiser Lake Erie, equipped with a high-tech Aegis radar, launched a specially modified SM-3 antiballistic-missile interceptor. The rocket struck the malfunctioning satellite at an estimated speed of 22,000 miles an hour, destroying it.

Today, the US has dozens of Aegis-equipped warships carrying hundreds of SM-3 missiles, more than enough to quickly wipe out the approximately 50 satellites apiece that Russia & China keep in low orbit.

Aegis ships could be positioned optimally,” Grego of the Union of Concerned Scientists wrote in a 2011 paper, “ to stage a ‘sweep’ attack on a set of satellites nearly at once.

As an anti-satellite backup, the US Army & the Missile Defense Agency also operate 2 types of ground-launched missile interceptors that have the power to reach low orbit — & the accuracy to strike spacecraft.

Against this huge arsenal, Russia & China possess few counterweights. China’s 2007 anti-satellite test, & a similar trial in early 2013, proved that Beijing can hit a low satellite with a rocket. In 2010, the Chinese space agency launched a cluster of small space vehicles, including 2 named SJ-6F & SJ-12, that slammed into each other in orbit, seemingly on purpose. In July 2013, China deployed a small inspection spacecraft, designated SY-7, in low orbit.

Like the US fleet of maneuverable inspection spacecraft, the tiny SY-7 with its remote-controlled claw could be orbital repair or inspection vehicle — or it could be a weapon.

One could dream up,” Brian Weeden, a technical & space adviser at the Secure World Foundation, told the War Is Boring Website in 2013, “a whole bunch of dastardly things that could be done with a robotic arm in close proximity.”

But China lacks the space- & ground-based sensors to accurately steer these weapons toward their targets. Compared to the US space-awareness system, with its scores of radars & telescopes, China possesses a relatively paltry system — one consequence of Beijing’s diplomatic isolation.

Where the US can count on allies to host parts of a global sensor network, China has few formal allies & can only deploy space-awareness systems inside its own borders, on ships at sea or in space. The Chinese military can watch the skies over East Asia, but is mostly blind elsewhere.

By contrast, Russia inherited an impressive space-awareness network from the Soviet Union. Russia’s allies in Europe — in particular, the former Soviet & Eastern Bloc states — extend the network’s field of view. As a result, Moscow possesses “a relatively complete catalog of space objects,” the Secure World Foundation concluded.

But Russia is still far behind the US & China as far as space weaponry is concerned. There was a 31-year gap between the Soviet Union’s last anti-satellite test & Russia’s first post-Soviet orbital-weapon experiment. On Christmas Day in 2013, Russia quietly launched a small, maneuverable inspection spacecraft into low orbit, hiding the tiny spacecraft among a cluster of communications satellites.

2 more space inspectors followed, one in May 2014 & another in March 2015. Moscow hasn’t said much about them, but amateur satellite spotters have tracked the vehicles performing the kinds of maneuvers consistent with orbital attack craft. “You can probably equip them with lasers,” Anatoly Zak, the author of Russia in Space: Past Explained, Future Explored, said of the Russian craft. “Maybe put some explosives on them.”

They join a growing number of space weapons guided by expanding networks of Earth-based & orbital sensors on a new, distant battlefront of a so far bloodless neo-Cold War.