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Israel for Dummies

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I don’t pretend to be an expert on Middle East politics.  I usually rely on the perspective of Steve Clemons at The Washington Note, who provides candid, unvarnished commentary on the complicated issues in that region.  Since December of 2008, I have been following the accomplishments of Jeremy Ben-Ami, the Executive Director of J Street, which he describes as “the political arm of the pro-Israel, pro-peace movement”.

Concern over the threat to Israel from Iran’s nuclear ambitions has been a hot topic during this election year.  Nevertheless, on February 27, Andrew Jones wrote a piece for The Raw Story, which included some disclosures published by Wikileaks concerning Iran’s uranium enrichment efforts:

Growing concerns over Iran’s nuclear facilities may prove to be all for naught.  Officials from the global intelligence company Stratfor allegedly discussed that Israel may have already destroyed the Iranian nuclear facility, according to one of the emails released by Wikileaks Monday.

In one of the over five million emails leaked, the conversation centered on Israeli Defense Minister Ehud Barak praising the news of deadly munitions blasts at a base of Iran’s elite Revolutionary Guards.

“I think this is a diversion.  The Israelis already destroyed all the Iranian nuclear infrastructure on the ground weeks ago,” one intelligence official wrote in an email dated November 14, 2011. “The current ‘let’s bomb Iran’ campaign was ordered by the EU leaders to divert the public attention from their at home financial problems.  It plays also well for the US since Pakistan, Russia and N. Korea are mentioned in the report. ”

This scenario makes sense.  Iran would not likely admit to having been humiliated by Israel .  Beyond that, the European Union plutocrats would enjoy nothing more than a decent sideshow to distract attention from their economic austerity fiasco.

For years, I have been waiting for someone to write a book called Israel for Dummies.  Too many American teevee pundits seem completely ignorant about Israel’s internal political strife and its impact on the prospects for peace with the Palestinians.  It appears as though someone has finally written that book.  I recently came across a great piece written by Noah Millman for The American Conservative.  Mr. Millman wrote a review of a new book entitled, The Unmasking of Israel by Gershom Gorenberg.  As Millman explains, the book takes us back to the early days of Israel, with David Ben-Gurion at the helm, bringing us to the present-day, never-ending conflict with the Palestinians.  Here are some highlights from Noah Millman’s book review:

Rather, the thrust of the book, as the title states, is to demonstrate that the series of decisions made during and after the 1967 War that resulted in the occupation of the West Bank and Gaza set in motion a process that has progressively “unmade” the State of Israel.  Indeed, the progressive expansion of the settlement enterprise has so eroded the foundations of the signature achievement of political Zionism – Israel as we now know it – that not merely a “Jewish democratic state” but the state as such is now imperiled.

*   *   *

Since 1967, Gorenberg relates, the settlement enterprise has undermined the Israeli state top to bottom.  It has fostered secrecy and corruption in government.

*   *   *

Again the story is familiar.  Less so is the framing. Gorenberg, though he is outraged by the plight of the Palestinians, is not really writing about that plight.  Nor is he writing from an anti-Zionist perspective.  Rather, he is writing from a deeply Zionist point of view.  Zionism, we tend to forget, was not a self-defense movement.  It was a nationalist movement. Nationalism tells a people a story about what it means to be free – that being free means being part of a self-conscious, self-governing, sovereign, and independent collective.  Losing consciousness of one’s national group, being governed by other groups, failing to achieve independence and sovereignty on par with other nations – these are signs of unfreedom.  Of immaturity. The Jews before Zionism were, from the perspective of this narrative, either an exceptionally immature nation or not a nation at all.  The goal of Zionism was not simply – or even primarily – to provide for a “safe haven” for Jews fleeing persecution by the Czar or the Nazis.  The goal was the spiritual rejuvenation of the Jewish people by molding them into a nation like other nations and achieving independent statehood.

This is a narrative frame that, in broad strokes, Gorenberg accepts, which is why he is properly seen as a Zionist.  Indeed, the whole argument of the book is that by holding onto and settling the territories captured in 1967, Israel has reverted to a mode of existence that Zionism was supposed to help the Jews grow out of. By undermining the authority of the state, the settlement enterprise has revived modes of being and of argument that, from Gorenberg’s perspective, the Jewish people should have grown out of when they acquired the power and responsibility of a state. Indeed, that was the whole point, from a moral perspective, of acquiring state power in the first place.  The settlement enterprise doesn’t just undermine the moral case for Israel because it’s an injustice (plenty of states have perpetrated injustices – indeed, far worse injustices – without undermining the case for statehood as such) but because it is evidence that Zionism failed in what was arguably its primary objective.

As an aside:  Be sure to read the Comment stream following Millman’s piece.  It included some astute remarks and a good debate.

One American’s experience in attempting to get a better understanding of the Israeli – Palestinian conflict was chronicled on the Al Jazeera website.  Punk rock icon, Jello Biafra of The Dead Kennedys discussed his decision to cancel a show he was scheduled to perform at the Barby Club in Tel Aviv with his new band (Jello Biafra and the Guantanamo School of Medicine).  His bandmates had decided to boycott Israel in order to support the Boycott Divestment and Sanctions (BDS) movementWikipedia lists this explanation of the BDS movement’s three main goals:

  1. Freeing all Palestinian territories from Israeli influence since 1967 and dismantling the Israeli West Bank barrier;
  2. Acting towards the rights of the Arab-Palestinian citizens of Israel; and
  3. Promoting the interests of Arab Palestinian refugees in reference to the United Nations General Assembly Resolution 194 of 1948.

Jello Biafra’s account of what followed his decision to cancel the Tel Aviv gig made for some interesting reading:

So with the rollercoaster still in my stomach and my head, I flew solo to Israel instead.  The mission:  to check things out myself and hopefully at least get closer to some kind of conclusion on whether artists boycotting Israel, especially me, was really the best way to help the Palestinian people.

*   *   *

I also got an invitation from a self-proclaimed fan to “come meet the Israeli right” and see the settlements through their eyes, complete with a wine-tasting party.

Many people I met on my trip to Israel feel that the boycott has damaged the Israeli opposition more than it has anyone else and “helped silence the peace camp in Israel”.  A veteran journalist I met later told me, “the best way to contribute to peace is to try and work to understand both sides” and that he felt that boycotts strengthen extremists by keeping people apart.

*   *   *

One of the few things both Israelis and Palestinians seem to agree on is that one of the main obstacles to peace these days is the settlers.

Today the illegal settlements are completely out of control, with 300,000 settlers planted across the Green Line in the West Bank and another 200,000 beyond the Green Line in East Jerusalem. Borders are creatively moved and enforced by the infamous wall, started by the ideas of Yitzhak Rabin and greatly expanded by Ariel Sharon.  It’s a black eye on the face of Israel’s reputation today, considered so even among many of Israel’s citizens and supporters.

Some people told me that if the wall had been built along the Green Line, it might have actually worked.  But Sharon then used it as a land grab, creatively and maniacally routing it through the middle of Palestinian towns, Palestinian farmland and across Palestinian roads, in a deliberate attempt to make the West Bank such a splattered Swiss-cheese hodgepodge of impassable walls and checkpoints that a free Palestinian state could never get off the ground.

Any fantasy that Palestinians could one day be broken down to stay on “their side” of the wall and live happily ever after is ridiculous.  It flies in the face of all human instinct and human rights. It is never going to happen.  Like the Berlin Wall, it is destined to fall sooner rather than later.

*   *   *

A boycott of products made in settlements has begun inside Israel.  There is also a growing boycott by artists refusing to cross the Green Line and perform for the settlers.  A fancy venue has opened in one of the largest settlements in Ariel.  Many artists refuse to perform there.

*   *   *

Yet bringing down this regime by boycott may be a much higher mountain to climb than the boycott of South Africa.  The 1985 musician boycott of Sun City (a posh, government-owned golf resort and casino in South Africa) was just a promotional tool for the financial boycott, where banks, universities and corporations caved into pressure to pull their investments out of South Africa and broke the back of the white apartheid regime.

*   *   *

I am not saying the same tactics that brought down apartheid South Africa can’t be done.  I am just saying that there are different and heavier obstacles this time and people need to be ready for them.

South Africa never had anything like the AIPAC (American Israel Public Affairs Committee) lobby, which is now considered more of a lobby for Likud than for the Israeli people.  Nevertheless, they have a stranglehold over almost every member of Congress of both parties, using Joe McCarthy-type tactics to smear anyone they don’t like as anti-Jewish – and get them voted out of office.

*   *   *

I will not perform in Israel unless it is a pro-human rights, anti-occupation event that does not violate the spirit of the boycott.  Each artist must decide this for themselves. I am staying away for now, but am also really creeped out by the attitudes of some of the boycott hardliners, and hope someday to find a way to contribute something positive here.  I will not march or sign on with anyone who is more interested in making threats than making friends.

As for the Arab Spring, I cross my fingers on one hand and bite my nails with the other.

I have a lot to learn and a long way to go.

We all have a lot to learn.  Jello Biafra’s humility is refreshing.  If only our politicians were so humble  .  .  .


 

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Another Cartoon For The Bernank To Hate

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Those of us who found it necessary to explain quantitative easing during the course of a blog posting, have struggled with creating our own definitions of the term.  On October 18, 2010, I started using this one:

Quantitative easing involves the Federal Reserve’s purchase of Treasury securities as well as mortgage-backed securities from those privileged, too-big-to-fail banks.

What I failed to include in that description was the fact that the Fed was printing money to make those purchases.  I eventually resorted to simply linking the term to the definition of quantitative easing at Wikipedia.org.

Suddenly, in November of 2010, a cartoon – posted on YouTube – became an overnight sensation.  It was a 6-minute discussion between two little bears, which explained how “The Ben Bernank” was trying to fix a broken economy by breaking it more.

We eventually learned a few things about the cartoon’s creator, Omid Malekan, who produced the clip for free on the xtranormal.com website.  Kevin Depew, the Editor-in-Chief of Minyanville, interviewed Malekan within days of the cartoon’s debut.  Malekan expressed his disgust with what he described as “the Washington-Wall Street Complex” and the revolving door between the financial industry and those agencies tasked to regulate it.  David Weigel of Slate interviewed Malekan on November 22, 2010 (eleven days after the cartoon was made).  At that point, we learned a bit about the political views of the 30-year-old, former stock trader-turned-real estate manager:

I’m all over the map.  Socially, I’m pretty liberal.  Economically, I’m fairly free-market oriented.  I generally prefer to vote third party, because it’s just good for the country if we get another voice in there.  To me none of this is really partisan because things are the same under both parties.  Ben Bernanke was appointed by Bush and re-appointed by Obama, so they both have basically the same policies.  The problem, really, is that monetary policy is now removed from people in general.  People like Bernanke don’t have to get elected.  There’s a disconnect between them and the people their decisions are affecting.

One month later, Malekan was interviewed by “Evan” of The Point Blog at the Sam Adams Alliance.  On this occasion, the animator explained his decision to put “the” in front of so many proper names, as well as his reference to Ben Bernanke as “The Bernank”.  Malekan had this to say about the popularity of the cartoon:

To be fully honest, I had no idea this would get the wide audience that it did.  Initially when I made it, it was to explain it to a select group of friends of mine.  And any other straggler that happened to see it, and I never thought that would be over 3 million people.  But, the main reason was cause I think monetary policy is important to everybody because it’s monetary policy.  Unlike fiscal policy or regulation, monetary policy, because of the way it impacts interest rates and the dollar, impacts every single person that buys and sells and earns dollars.  So I think it’s something that everybody should be paying attention to, but most people don’t because it’s not ever presented to them in a way they could hope to understand it.

Omid Malekan produced another helpful cartoon on January 28.  The new six-minute clip, “Bank Bailouts Explained” provides the viewer with an understanding of what many of us know as Maiden Lane III – as well as how the other “backdoor bailouts” work, including the true cost of Zero Interest Rate Policy (ZIRP) to the taxpayers.  This cartoon is important because it can disabuse people of the propaganda based on the claim that the Wall Street megabanks – particularly Goldman Sachs – owe the American taxpayers nothing because they repaid the TARP bailouts.  I discussed this obfuscation back on November 26, 2009:

For whatever reason, a number of commentators have chosen to help defend Goldman Sachs against what they consider to be unfair criticism.  A recent example came to us from James Stewart of The New Yorker.  Stewart had previously written a 25-page essay for that magazine, entitled “Eight Days” — a dramatic chronology of the financial crisis as it unfolded during September of 2008.  Last week, Stewart seized upon the release of the recent SIGTARP report to defend Goldman with a blog posting which characterized the report as supportive of the argument that Goldman owes the taxpayers nothing as a result of the government bailouts resulting from that near-meltdown.  (In case you don’t know, a former Assistant U.S. District Attorney from New York named Neil Barofsky was nominated by President Bush as the Special Investigator General of the TARP program.  The acronym for that job title is SIGTARP.)   In his blog posting, James Stewart began by characterizing Goldman’s detractors as “conspiracy theorists”.  That was a pretty weak start.  Stewart went on to imply that the SIGTARP report refuted the claims by critics that, despite Goldman’s repayment of the TARP bailout, it did not repay the government the billions it received as a counterparty to AIG’s collateralized debt obligations.  Stewart referred to language in the SIGTARP report to support the spin that because “Goldman was fully hedged on its exposure both to a failure by A.I.G. and to the deterioration of value in its collateralized debt obligations” and that “(i)t repaid its TARP loans with interest, bought back the government’s warrants at a nice profit to the Treasury” Goldman therefore owes the government nothing — other than “a special debt of gratitude”.  One important passage from page 22 of the SIGTARP report that Stewart conveniently ignored, concerned the money received by Goldman Sachs as an AIG counterparty by way of Maiden Lane III, at which point those credit default obligations (of questionable value) were purchased at an excessive price by the government.  Here’s that passage from the SIGTARP report:

When FRBNY authorized the creation of Maiden Lane III in November 2008, it lent approximately $24.6 billion to the newly formed limited liability company, and AIG provided Maiden Lane III approximately $5 billion in equity.  These funds were used to purchase CDOs from AIG counterparties worth an estimated fair value of $29.6 billion at the time of the purchases, which were done in three stages on November 25, 2008, December 18, 2008, and December 22, 2008.  AIGFP’s counterparties were paid $27.1 billion, and AIGFP was paid $2.5 billion per an agreement between AIGFP and FRBNY.  The $2.5 billion represented the amount of collateral that AIGFP had previously paid to the counterparties that was in excess of the actual decline in the fair value as of October 31, 2008.

FRBNY’s loan to Maiden Lane III is secured by the CDOs as the underlying assets.  After the loan has been repaid in full plus interest, and, to the extent that there are sufficient remaining cash proceeds, AIG will be entitled to repayment of the $5 billion that the company contributed in equity, plus accrued interest.  After repayment in full of the loan and the equity contribution (each including accrued interest), any remaining proceeds will be split 67 percent to FRBNY and 33 percent to AIG.

The end result was a $12.9 billion gift to “The Goldman Sachs”.

Thanks to Mr. Malekan, we now have a cartoon that explains how all of AIG’s counterparties were bailed out at taxpayer expense, along with an informative discourse about the other “backdoor bailouts”.

Omid Malekan has his own website here.  You should make a point of regularly checking in on it, so you can catch his next cartoon before someone takes the opportunity to spoil all of the jokes for you.  Enjoy!


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This Should Have Happened Last Year

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September 18, 2008

I’m sorry.  What is happening in the financial markets right now, should have happened at this time, last year.  I put my money where my mouth was, in the belief that a laissez-faire Republican government would have let market conditions run their course.  That strategy caused me to lose money for the past year.  When precious metals should have been going up, they were going down.  Something “stinky” was happening.  At this time, last year, Jon Markman of msn.com was discussing the “duct tape and pixie dust” being used to hold the economy together.  In hindsight, I suspect that there may have been an effort to keep the ca-ca from hitting the fan until after Election Day (November 4).  Time will tell whether there was some skullduggery involved in such an effort.  Do you think that the “oil speculators” realized, at some point, that they could manipulate the prices of the small handful of stocks (30) that comprise the Dow Jones Industrials, by manipulating the price of oil?  Are these same “oil speculators” on “good behavior” right now, out of fear that the “Enron Loophole” could be doomed?

I apologize because I have been making (back) lots of money this week, while many people have seen their retirement plans crash and burn.  I stuck to my belief that the emperor was not really wearing any clothes.  It cost me money to adhere to that opinion, although it is now “payback time”.  To no surprise, the Carly Fiorinas of this nosedive will walk away with their golden parachutes intact.  However, will AIG still be free to make crucial decisions about which lawsuits to litigate?  Do they have a right to make those (and other) decisions as they used to, now that you and I own eighty percent of that company?

Meanwhile, John “Keating Five” McCain claims that he will champion the interests of those suckers who vote for him, by bringing “The Good Old Boys of Wall Street” to Alaskan frontier justice.  Why would anyone believe this?  Based on his record, McCain could not expect the voters to consider him as the advocate of the downtrodden.  For some reason, the Obama campaign has expressed an unwillingness to use the “Keating Five” episode of McCain’s life, as fodder for negative ads.  (They may find themselves thinking more clearly in late October.)

Let’s take a look back at the “glory days” of The Keating Five, from what is available on Wikipedia.org:

The Keating Five scandal was prompted by the activities of one particular savings and loan: Lincoln Savings and Loan Association of Irvine, California. Lincoln’s chairman was Charles Keating, who ultimately served five years in prison for his corrupt mismanagement of Lincoln.  In the four years since Keating’s American Continental Corporation (ACC) had purchased Lincoln in 1984, Lincoln’s assets had increased from $1.1 billion to $5.5 billion.  Such savings and loan associations had been deregulated in the early 1980s, allowing them to make highly risky investments with their depositors’ money, a change of which Keating took advantage.  Lincoln’s investments took the form of buying land, taking equity positions in real estate development projects, and buying high-yield junk bonds.

*   *   *

The core allegation of the Keating Five affair is that Keating had made contributions of about $1.3 million to various U.S. Senators, and he called on those Senators to help him resist regulators. The regulators backed off, to later disastrous consequences.

*   *   *

(f)ive senators, Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), John McCain (R-AZ), and Donald W. Riegle (D-MI), were accused of improperly aiding Charles H. Keating, Jr., chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board (FHLBB).

*   *   *

After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings. Senators John Glenn and John McCain were cleared of having acted improperly but were criticized for having exercised “poor judgment”.  All five of the senators involved served out their terms. Only Glenn and McCain ran for re-election, and they were both re-elected.

*   *   *

McCain and Keating had become personal friends following their initial contacts in 1981, and McCain was the closest socially to Keating of the five senators. Like DeConcini, McCain considered Keating a constituent as he lived in Arizona. Between 1982 and 1987, McCain had received $112,000 in political contributions from Keating and his associates. In addition, McCain’s wife Cindy McCain and her father Jim Hensley had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. McCain, his family, and their baby-sitter had made nine trips at Keating’s expense, sometimes aboard Keating’s jet. Three of the trips were made during vacations to Keating’s opulent Bahamas retreat at Cat Cay. McCain did not pay Keating (in the amount of $13,433) for some of the trips until years after they were taken, when he learned that Keating was in trouble over Lincoln. On his Keating Five experience, McCain has said: “The appearance of it was wrong. It’s a wrong appearance when a group of senators appear in a meeting with a group of regulators, because it conveys the impression of undue and improper influence. And it was the wrong thing to do.”

So where is the Obama ad using “Poor Judgment” as its theme?  Wouldn’t it be nice to see that phrase repeated under a picture of Sarah Palin?