[Peace-discuss] Wolfy 2: Crits from the principled-Right

Lisa Chason chason at shout.net
Sun Mar 20 08:58:02 CST 2005





(Anti-imperialist conservatives are generally good value.)

----- Original Message ----- 
From: Memo on the Margin
To: Wanniski.com Subscribers
Sent: Friday, March 18, 2005 10:03 PM
Subject: Letter from Lisbon, re Wolfowitz

Letter from Lisbon, re Wolfowitz

Mar 18 2005

Memo To: Website Fans, Browsers, Clients
From: Jude Wanniski
Re: A European View

Earlier this month I spent a weekend in Lisbon, Portugal, at a NATO
workshop

organized by Dr. Mendo Castro Henriques, director of the Portugal`s
National

Defense Institute. Paul Wolfowitz was discussed in the course of the 
proceedings, attended by scholars, military men, political figures from
the 
Mediterranean states. Someone even brought up the rumor that Wolfowitz
was 
being considered for the World Bank, but I noted another report that he
was 
going to remain at the Pentagon. The room seemed cheered by my
observation 
that the neo-cons might be in decline given the appointment of Bob
Zoellick 
to be deputy to Condoleezza Rice at State. When I wrote my memo on the 
margin earlier this week about Wolfowitz actually getting the World Bank

appointment, I sent a copy to Professor Henriques and asked if he would 
share his view with me. Here is his most thoughtful response, with 
surprising references to George Kennen, the legendary American diplomat
and 
Cold War strategist, who died just yesterday at 101.

Dear Jude:

I read your brilliant note on the margin about Wolfowitz` election to
the 
World Bank and I am answering to your solicitation of my view. Of course
you

know better than me the implications of his choice and you prove how the

non-expert is a good tool for the dark forces behind him. On the other
hand,

he may be the inevitable man. The correlation of forces that enabled him
to 
be chosen indicates that, perhaps no alternative was possible. Let me
say 
why.

In Washington, the neo-cons pretend to make grand new policy. In fact,
it is

perhaps just another day in US hegemony, with a big difference, of
course, 
because it is becoming increasingly malignant. In 1949, after George 
Kennan`s Long Telegram, NSC 68 announced global hegemony. Only the U.S. 
government had resources to maintain world order, which required a
massive 
warfare state and a permanent global military and CIA presence. In 1949,
the

U.S. elite established global institutions, such as a world court, a
world 
central bank, (Wolfowitz` heritage) a world economic planner, and a
world 
police force. That was contention Number 1.

There was a second dimension in Kennan`s contention: Contain yourselves
in 
order not to imitate the preposterous procedures of the Soviet empire.
That 
would be contention Number 2. Yet, no one doubted the glories of the 
escalating welfare-warfare-national security state. The only critics
were 
Marxists. No isolationists; no La Follette`s independents with the
Wisconsin

idea; no Southern Agrarians. No anti-socialist element in American life 
could be anything other than pro-expansion.

George Kennan`s two meanings of contention were abided during the Cold
War 
and the system worked until there were no more adversaries. The Cold War
was

a Western civil war: democratic-liberal States and political parties
against

socialist-democratic States and parties. A Peace Treaty did not follow
the 
end of Cold War. As you say, Jude, diplomacy did not substitute for
warfare.

In Europe de-marxization was cynical and the old Left imperialist
cronies 
united with the new Right neo-con trendies. The US was unable to avoid 
international political conflicts. Meanwhile, the moral legitimacy of 
government, its officials, and its policies was on the wane. Politicians
as 
a class, and not just one party, are deeply distrusted and detested.

Non-voting - and switching vote - became a form of secession from a
system 
that offers the illusion of democratic participation.

In the 80`s, Jude, your group won the "supply-side economics" battle.
The US

economy recuperated and the world benefited. Technological developments 
outpaced the ability of government to control them. The public rushed
for 
the capital markets. Private arbitration replaced government courts.
Market 
forces overwhelm government power on a daily basis. Nobody in Washington

believes in Keynesian fiscal planning.

Yet, in the 90`s , in the wake of the "War that was not concluded by a 
Peace" came Bosnia, Gulf I, Somalia, Liberia, and the US government
switched

from welfare state to warfare state. The growth in government spending
in 
arms procurements increased dramatically. 9/11 was just an upgrading of
the 
process. The power elite became disconnected from government. They make 
fortunes by attention to the needs of the consumer, and through a 
competitive struggle. They witnessed the power of the market economy to 
transform society and individual lives, and have seen nothing but
failure 
from government programs. This corporate elite is disconnected from the
idea

and regulatory apparatus of the nation. (see Mel Gibson`s Patriot).

So there can be an economic boom, a soaring stock market, and a very low

unemployment rate, but the Fed keeps boosting the money supply and 
petro-dollars are all round. The old ladies in Tokyo, the astute
wahabite 
Saudis and Gulf people and now Chinese "capitalist patriots" in Shangai
or 
Singapore are supporting the declining value of the dollar on
international 
exchange. You, and the Mundell school - know better how poor states in
the 
world keep paying for the 1971deregulation.

In time, the boom will bust. In the next recession, the forces of
government

may be unable to impose the fiscal and regulatory planning that they
once 
enacted. Why? Because the state is in the wane, absolutely eroded. To
impose

a reversal of trends in government power requires a consensus in favor
of 
government "solutions" that no longer exists. The "state is too small
for 
big issues, and too big for small ones"

We witness again the process that began in the late 1980s, when
socialist 
regimes crumbled despite every prediction about their permanence. The 
anti-state forces are working out in different and unpredictable ways.
The 
foundations of all-round statism collapsed. A malign US Empire is the 
inevitable solution to keep big government and an artificial good
economy.

In this context, Wolfowitz is the inevitable man and he stands as
another 
icon for the expiring of freedom in our time. If pseudo-intellectuals
like 
Wolfowitz -and businessmen like Shultz and others you mention - become
money

grabbers instead of law abiders; and if real intellectuals are silenced
or 
put into dissidence, the U.S power elite becomes singularly cynic and
may 
provoke a real tragedy, a conflict with no issue. Pearl Harbour, Vietnam
and

9/11 were followed by victories. They were no tragedies. I think you
must be

prepared for real tragedies, at home or abroad. American dissidents are
the 
most important to the world because the US is atop the pyramid of power.

Shall we see them winning or just resisting?

Mendo

* * * * *

Wolfowitz at the World Bank

Memo To: Website Fans, Browsers, Clients
From: Jude Wanniski
Re: A Perfect Fit

If you really don't know what the "World Bank" is all about, you would
think

that President Bush was joking in nominating Paul Wolfowitz to be the
new 
president of the Bank, replacing Jim Wolfensohn. One of the chief
architects

of the Iraq war, Wolfowitz is a political theorist, a 61-year-old man
who 
spent most of his adult life at blackboards and lecterns teaching
students 
about international politics. He may know how to operate an Automatic
Teller

Machine when in need of ready cash, but he knows absolutely nothing
about 
banking. Wolfensohn, who was a New York investment banker before
President 
Clinton named him to the post a decade ago, at least knows something
about 
banking. His partner in New York, to which I suppose he will return, is
Paul

Volcker, the former chairman of the Federal Reserve, our nation's
central 
bank. Wolfie the Warrior, by contrast, is the lifetime sidekick, even 
protégé, of Richard Perle, probably the most important intellectual in
the 
service of the military-industrial complex. If you want to know how 
Professor Wolfowitz got the job, follow the money.

That's what the World Bank is all about. It was created as an adjunct of
the

United Nations at the end of World War II, along with its brother 
institution, the International Monetary Fund. On paper, its function was
to 
lend money to developing countries to help them grow. Its real job has
been 
to serve the interests of the major money-center banks and the
multinational

corporations who make the big bucks in World Bank development projects.
The 
Bank, which is really a "fund," persuades a poor country like Ghana, for

example, to build a new industrial complex in order make stuff for
export. 
It will lend the money to Ghana -- which it gets from global taxpayers 
including you and me -- and arrange for the complex to be built by one
of 
the favored corporations in the military-industrial complex. The list
always

includes Bechtel Corporation, Halliburton, and Kellogg Brown & Root, a 
division of Halliburton. These outfits go in and build the projects
because 
the locals have no expertise.

In my January 23 memo in this space, "Confessions of an Economic Hit
Man," I

remarked on the recent book by John Perkins, who explains in some detail
the

mechanics of this gigantic money machine. It not only promotes
unnecessary 
industrial complexes in Ghana, which rust away in bankruptcy when they
prove

to be uneconomic. The aim of the military-industrial complex is not only

"industrial," but also military. The name most closely associated with 
Halliburton, of course, is Vice President Cheney, who was Defense
Secretary 
in the first Gulf War, with Paul Wolfowitz even then at his side (urging

all-out war with Iraq even after Saddam put up the white flag and
retreated 
to Baghdad before the war began!!) Rats.

The name most associated with Bechtel is George P. Shultz, once its top
dog,

now a mere director. Shultz was Treasury Secretary under Richard Nixon 
(helping talk him into floating the U.S. dollar), Secretary of State
under 
Ronald Reagan, and currently a member of the Defense Policy Board, which

until last year Richard Perle chaired.

Shultz also introduced Governor George W. Bush to Condoleezza Rice, who
in 
turn introduced Paul Wolfowitz to Governor Bush back in 1999. Shultz of 
course knew at the time that Wolfie and Perle and their neo-con Cabal
were 
planning a war in Iraq, and we know nice, little "doable" wars (Wolfie's

word), are meat and potatoes for the military-industrial complex.
Instead of

squeezing nickels and dimes out of the taxpayers to persuade Ghana to
build 
a steel mill it doesn't need and can't run, even little wars run into
the 
billions. And everyone gets into the act. The arms makers who produce 
airplanes, tanks, guns, jeeps and humvees get to blow up a country (like

Iraq) and Bechtel and Halliburton come in right behind to rebuild it. In

announcing the Wolfowitz appointment today, President Bush said the
World 
Bank is a big organization and Wolfowitz has experience running a big 
organization, the Pentagon!! As far as the military-industrial complex
is 
concerned, Wolfowitz did a FANTASTIC job. He was only expected to plan
for a

$30 billion war and he screwed up so badly that it is now a $200 billion

war, and counting. Anyone who can screw up that badly deserves a
promotion, 
to the World Bank.

So you see it doesn't really matter that Wolfowitz doesn't know the
first 
thing about banking or the economics of development projects. He will
sit 
behind the biggest desk at the Bank and take the telephone calls from
the 
Big Banks and the Multinationals, telling him what to do, and providing
him 
with experts like John Perkins, who did the actual dirty work as an
economic

hit man, and now writes his confessions. When the White House needs a
big 
favor for one of its big hitters, it need only put in a call to Wolfie,
who 
will throw the right switch. That's exactly the way it worked with Jim 
Wolfensohn these past ten years, and if you don't believe me, look
around 
and you will note how many poor countries got poorer during his reign,
and 
how many big bucks were made at Bechtel and Halliburton.

There will of course be complaints from various global diplomats about
the 
obvious incompetence of Wolfowitz, just as there were puzzled 
head-scratchings around the world about the incompetence of Condi Rice
as 
Secretary of State or John Bolton as UN Ambassador. But money talks in
all 
the places where the directors of the World Bank live, and they will be 
advised to clam up by the local military-industrial money machines.
Perle 
will also have his pals at The Weekly Standard and Fox News speculate
that 
when Condi is President, Wolfie will be her veep (which is how it
happened 
we've seen talk of Condi for President in 2008). Nor can we expect any 
complaints from Congress, because in one way or another there is too
much 
money at stake, too many reputations looking toward bigtime lobbying
jobs 
when its time to give up a seat in Congress.

If this seems harsh, as if I'm writing about something new under the
rocks 
on which our Uncle Sam perches, I suggest you read my 1978 book, "The
Way 
the World Works," which describes how the British Empire worked in
exactly 
this fashion. My best example was the first multinational corporations,
the 
British railroad builders. Once they ran out of places to build rail
lines 
in the U.K., they persuaded Parliament to promote railroads in the
colonies,

and were enormously successful in talking the Raj into criss-crossing
India 
with railroads in the mid-19th century. It was one thing in England,
where 
the companies could only build where there was a clear sign the line
would 
be profitable, because it was their own money at risk. In India, the
locals 
borrowed the money from the Bank of England and hired the builders to
put in

rail lines that couldn't possibly be profitable. India was burdened with

debts from these schemes well into the 20th century.

Even after it gained independence in 1948, India was persuaded by
British 
and American economists to keep tax rates high and to devalue the rupee,
to 
keep them poor and unable to compete with the big guys. Who did the
British 
and American economists work for? Why the World Bank, of course, and
also 
the IMF, whose job is to go into the poor countries when they can't pay
back

their loans, and lend them the money to do so -- as long as they agree
to 
raise taxes again, devalue their currency, and build new industrial 
complexes that are constructed by Bechtel and Halliburton.

So you see why it makes perfect sense to have Wolfowitz at the World
Bank. 
He's terrific at doing wars, and wars are much more profitable than 
nickel-and-dime industrial projects. That's the way the world works.
Always 
has been.

* * * * *

Catastrophic success
The problem with Paul Wolfowitz isn't that he's an evil genius -- it's
that 
he has been consistently wrong about foreign policy for 30 years.
- - - - - - - - - - - -
By Michael Lind

March 17, 2005  |  The nomination of Paul Wolfowitz to be president of
the 
World Bank, following his commission of a long and costly series of
blunders

as deputy secretary of defense in George W. Bush's first term, comes as
no 
surprise to those familiar with his career. Wolfowitz is the Mr. Magoo
of 
American foreign policy. Like the myopic cartoon character, Wolfowitz 
stumbles onward blindly and serenely, leaving wreckage and confusion
behind. Critics are wrong to portray Wolfowitz as a malevolent genius.
In fact, he's

friendly, soft-spoken, well meaning and thoughtful. He would be the
model of

a scholar and a statesman but for one fact: He is completely inept. His 
three-decade career in U.S. foreign policy can be summed up by the term
that

President Bush coined to describe the war in Iraq that Wolfowitz
promoted 
and helped to oversee: a "catastrophic success."
Even the greatest statesman makes some mistakes. But Wolfowitz is
perfectly 
incompetent. He is the Mozart of ineptitude, the Einstein of incapacity.
To 
be sure, he has his virtues, the foremost of which is consistency. He
has 
been consistently wrong about foreign policy for 30 years.
In the 1970s and 1980s, as a member of the Committee on the Present
Danger 
and "Team B," Wolfowitz and his allies, such as Richard Perle, argued
that 
the decrepit Soviet Union was vastly more powerful than the CIA claimed
it 
was. After the Soviet Union dissolved, it turned out that the CIA had 
exaggerated Soviet strength.
More than anyone else, Wolfowitz is associated with the neoconservative 
fantasy of a planetary Pax Americana. This strategy, originally called 
"reassurance," first surfaced in leaked Pentagon planning documents in
1992,

in which Wolfowitz, working for then Defense Secretary Dick Cheney, had
a 
hand. The rest of the world reacted with outrage to the implication that

Europe and Asia should remain permanent American protectorates.
Embarrassed,

the first president Bush and Secretary of State James Baker hastily 
disavowed this strategy.
Unfortunately, no bad idea ever dies. Wolfowitz spent the Clinton years,

while he was the dean of the Johns Hopkins University School of Advanced

Strategic Studies, at the center of a network of neoconservative policy 
intellectuals, political appointees and mouthpieces like William Kristol
and

Charles Krauthammer devoted to maintaining U.S. hegemony in a "unipolar 
world." The influence of Wolfowitz and his fellow neoconservatives is
clear 
in President Bush's 2002 National Security Strategy, which calls for the

United States to dissuade "potential adversaries from pursuing a
military 
build-up in the hopes of surpassing, or equaling, the power of the
United 
States." Note the language. Not "surpassing, or equaling, the power" of
a 
coalition of states, like the alliances in which America took part in
the 
world wars and the Cold War. No, the United States had to adopt as its
motto

the explanation of the single Texas Ranger dispatched to quell a mob:
"One 
riot, one Ranger."
Inadvertently proving that talent always skips a generation, Wolfowitz
and 
his neoconservative allies persuaded Bush to pursue two policies his
wiser 
father had rejected as imprudent: a bid for unilateral world domination
and 
going all the way to Baghdad. By adopting the unilateral hegemony
strategy 
that Wolfowitz favored, the younger Bush alienated most of America's 
traditional allies and gave credibility to anti-Americans everywhere. By

going to Baghdad, as Wolfowitz wanted, the younger Bush exposed the
limits 
of U.S. military power to America's enemies and the world as a whole.
That 
not inconsiderable asset, the mystique of American power, is a casualty
of 
the Iraq war.
At least Wolfowitz and his neoconservative allies have been consistent. 
Since the Cold War ended, they have exaggerated American power in the
same 
way that they exaggerated Soviet power during the Cold War. As if to
prove 
the old adage that people come to resemble their enemies, these former
cold 
warriors treat the United States as a twin of the Soviet Union -- a
military

empire contemptuous of international law, with satellites instead of
allies,

justifying wars in its spheres of influence by appeals to ideology 
("democracy" rather than "socialism"). In the form of the concentration 
camps for detainees in Cuba, Iraq and elsewhere run by Donald Rumsfeld's
and

Wolfowitz's Pentagon, the neoconservatives even provided the United
States 
with a gulag of its own.
Wrong about geopolitics in general, Wolfowitz has been wrong about Iraq
in 
particular. Unembarrassed by their ridiculous overestimation of Soviet 
strength, Wolfowitz and other veterans of the Committee for the Present 
Danger in the late 1990s took part in the Project for the New American 
Century. They proceeded to exaggerate the alleged threat to the U.S.
from 
the bankrupt statelet left in Saddam Hussein's hands after the Gulf War
even

more shamelessly than they had hyped the Soviet menace. Focusing on
Saddam 
and regional threats to Israel, Wolfowitz and the other strategic
geniuses 
of the PNAC circle never mentioned Osama bin Laden.
With myopia worthy of Mr. Magoo, Wolfowitz focused on Saddam, not bin
Laden,

as the major terrorist threat to the United States. According to Laurie 
Mylroie, the crackpot conspiracy theorist at the American Enterprise 
Insititute who continues to insist on a Saddam-bin Laden connection, 
Wolfowitz "provided crucial support" for her book "Study of Revenge:
Saddam 
Hussein's Unfinished War Against America," published in 2000. The
following 
year, shortly after 9/11, according to Bob Woodward, Wolfowitz told a 
Cabinet meeting that there was a 10 to 50 percent chance that Saddam was

involved. According to former counterterrorism chief Richard Clarke, 
describing another occasion, "I could not believe it, but Wolfowitz was 
spouting the Laurie Mylroie theory that Iraq was behind the 1993 truck
bomb 
at the World Trade Center, a theory that had been ... found to be
totally 
untrue." As late as October 2002, Wolfowitz spoke of the Saddam regime's

"training of al Qaeda members in bomb-making, poisons and deadly
gasses." 
This had no basis in reality.
Weapons of mass destruction? Wolfowitz claimed: "Iraq is exploring ways
of 
using these UAVs [unmanned aerial vehicles] for missions targeting the 
United States." Was Kansas in danger of being nuked by robot drones from

Baghdad? Since the war ended, the Bush administration reluctantly has 
admitted that prewar skeptics were correct to argue that neither the
weapons

of mass destruction nor the robot planes capable of "targeting the
United 
States" ever existed.
It is unclear whether Wolfowitz actually believed what he said in public
on 
this subject. As he told Sam Tanenhaus in a now-famous Vanity Fair 
interview, "The truth is that for reasons that have a lot to do with the

U.S. government bureaucracy itself, we settled on the one issue that 
everyone would agree on, which was weapons of mass destruction as the
core 
reason, but -- Hold on for one second." (At this point in the official 
Pentagon transcript a handler intervenes, evidently afraid that
Wolfowitz 
has spilled one bean too many.)
In military matters, this deputy secretary of defense displayed a level
of 
ignorance without precedent in the history of civilian appointees to the

Pentagon. (Even Robert McNamara's much-maligned "whiz kids" got some
things 
right.) During the Clinton years Wolfowitz peddled the fantasy that 
American-supported rebels in Iraq could set up a base camp in one region
and

proceed to depose Saddam with minimal U.S. involvement. With the Bay of
Pigs

fiasco in mind, Gen. Anthony Zinni described this as the "Bay of Goats" 
strategy. When Gen. Eric Shinseki predicted that Iraq could not be
pacified 
without hundreds of thousands of U.S. troops, Wolfowitz told Congress
that 
Shinseki was "wildly off the mark."
"To assume we're going to have to pay for it all is just wrong,"
Wolfowitz 
declared, alluding to Iraqi oil revenues that could defray the costs of 
occupation and reconstruction. It is now clear that the hundreds of
billions

of dollars the United States will spend in Iraq will come from the
pockets 
of American taxpayers.
No summary of Wolfowitz's catastrophically successful career would be 
complete without acknowledgment that he was one of the major American 
sponsors of the disgraced Ahmed Chalabi, whom Paul Bremer's
administration 
in Baghdad accused of involvement in Iranian espionage. Last but not
least, 
following Wolfowitz's diplomatic mission to Turkey to obtain support for
the

forthcoming U.S. invasion of Iraq, Turkey decided to have nothing to do
with

the war.
Diplomat, military tactician, grand strategist -- as I said, Paul
Wolfowitz 
is perfectly incompetent.
We live in a country in which privates are punished for the crimes of 
generals, so it is only natural that Wolfowitz should be rewarded for
the 
blunders, errors and miscalculations that have cost the American and
Iraqi 
people so much by promotion to the World Bank. That's the way it is with
Mr.

Magoo. Whenever he steps blindly out of a building he has accidentally
set 
on fire, a truck is always conveniently passing by.

About the writer
Michael Lind is the Whitehead Senior Fellow at the New America
Foundation in

Washington. 

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