Sunday, July 6, 2014

We Buy El Salvador's Lunch

Comes the news on USA foreign aid:
El Salvador is a recent example of corporate domination in U.S. foreign aid. The United States will withhold the Millennium Challenge Compact aid deal, approximately $277 million in aid, unless El Salvador purchases genetically-modified seeds from biotech giant, Monsanto.
Where do we get $277 million dollars to "aid" El Salvador?  Well, as long as we can lend credit, for which there is no rational limit, credit-backed dollars are unlimited.  $277 million might seem like a lot to you or me, and even El Salvador, and certainly some El Salvadorans who were educated in USA, but to Uncle Sam who admits to 16 Trillion in debt, it is peanuts.

El Salvador is a small country, but as more and more small countries are paid by USA taxpayers to buy Monsanto products, it starts to add up for Monsanto.  Please note that without USA taxpayers buying the Monsanto products for El Salvador, El Salvadorans would not buy Monsanto products.  In big biz/big govt USA, this means taxpayers must pay El Salvadorans to buy Monsanto products.  Well, not pay for, but add it to our tab, since we are putting all this on credit.

As small countries take the money and then buy Monsanto, the food control shifts from the growers to the Harvard educated city bureaucracy, and the result is the chaos of such countries as Somalia.  We have destabilized many a South American and African country with this "aid."  We did so to the USA inner cities.

How did we get here?

The watershed event was the USA leaving the the last vestiges of the gold standard in 1971, and with that broke free of any rational limit to borrowing.  With limitless borrowing, comes limitless credit, in turn which can be lent.  What is outlawed in the three great monotheistic religions, is now calculated in the trillions.

But to what end?  It is always the same thing: libido dominandi.   Lust for power drives all sorts of people and Rome was not the first to conquer territories for food, and then use food for control.  It was ever thus.

USA was supposed to be exceptional in this regard, but we have proven to be unexceptional.  With the limits off, USA got busy using, as Earl Butz noted, food as a weapon.

Time magazine (November 11, 1974), concluding its special report on the world food crisis, explains its support of triage:
In the West, there is increasing talk of triage. . . .If the U.S. decides that the grant would simply go down the drain as a mere palliative because the recipient country was doing little to improve its food distribution or start a population control program, no help would be sent. This may be a brutal policy, but it is perhaps the only kind that can have any long-range impact. A triage approach could also demand political concessions. . . . Washington may feel no obligation to help countries that consistently and strongly oppose it. As Earl Butz told TIME: "Food is a weapon. It is now one of the principal tools in our negotiating kit."

The press was no less government-controlled back in the 1970s than it is now.  Continuing the blend of theories of Malthus and Darwin, leading magazines proclaimed there are too many people and someone had to go.

Only surplus food will find its way to those nations unable to compete in the market. But not even this paltry sum has been directed to the areas most in need. The Sahelian countries of Africa, where 100,000 persons were felled by famine last year, received relatively little of this surplus food. The decision as to where the food is shipped is based on cold war politics. Last year nearly half of our food aid went to South Vietnam and Cambodia. Our "defense perimeter" certainly did not include Chile under Salvador Allende. Three days before the military coup d’état, the U.S. turned down a request to sell wheat to Chile for cash. Yet one month after the junta’s putsch, with Allende dead, the U.S. granted the new regime eight times the total credit ever offered to Allende to purchase wheat. Food for Peace has been handled as an adjunct of our military assistance programs.

The system now depends on a regime in which there is no rational limit to what can be "borrowed" against "ourselves" (meaning our kids) with the only caution beyond forbidding usury is the vague "unto the third and fourth generation."  Bill to the USA taxpayers El Salvador purchase of GMO grain?  Why not? There is no rational limit, until something goes wrong and it comes a crashing down.

What are the chances the people of El Salvador escape this deal?  What are the chances we escape this deal?   Near zero?  That is capitalism, that is democracy.

On the one hand, there is absolutely no need for these programs.  Yes, people are starving in some places, but not for a shortage of food.  People starve pursuant to political decisions.

The small business of food trade worldwide is necessary and sufficient to literally deliver the goods.  If capitalism and democracy could have delivered by now, it would have.  What proper nutrition people in fact get is the result of free markets.  Like the socialists and communists, capitalists are free riders on the success of free markets.

The most revolutionary act you can perform is to start a business.

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