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This Week in Capitalism: October 5th 1877

October 7th, 2006 by Manila Ryce

Chief Joseph was a Nez Perce Indian, born in what is northeastern Oregon. His father was a defiant chief who refused to participate in the selling of land. In 1855, he refused a deal to segregate the land of Washington Territory into areas for Natives and areas for settlers, and in 1863 he boycotted the seizure of six million acres of Nez Perce land by refusing to move to the Nez Perce reservation in Idaho. Chief Joseph’s father died in 1871, but he communicated his wishes to his succeeding son before his death. He said, “Always remember that your father never sold his country. You must stop your ears whenever you are asked to sign a treaty selling your home. A few years more, and white men will be all around you. They have their eyes on this land. My son, never forget my dying words. This country holds your father’s body. Never sell the bones of your father and your mother.” Chief Joseph clasped his father’s hand and promised to defend his grave.

Joseph never allowed for violent acts against the Americans, fearing reprisals from their military superiority. Nonetheless, the Nez Perce suffered many injustices at the hands of white settlers, prospectors, and generals. In 1873, Chief Joseph had secured a negotiation in which the US federal government promised that his people could remain where they were. However, in 1877 General Howard held a council to Joseph that him and his people should relocate. Joseph gave an address to the general on human equality, stating that he did not believe “the Great Spirit Chief gave one kind of men the right to tell another kind of men what they must do.” General Howard interpreted the statement as a challenge to his authority. After being unsuccessful in persuading the Nez Perce to leave their land, the general threatened to attack them in 30 days if they did not relocate. Chief Joseph reluctantly agreed and called a council over the possibility of abandoning his father’s grave.

Several Nez Perce advocated war, but Joseph favored peace. As the council was underway, a young brave came with news that he and several others had killed four white men in an act to initiate war. Hoping to avoid more bloodshed, Joseph further led his people north to the reservation. However, they were attacked before getting there and retreated towards the Canadian border. Joseph led 800 Nez Perce with 2000 US soldiers close behind. For over 3 months, Joseph and his people fought and outmaneuvered their pursuers for 1,700 miles across Oregon, Washington, Idaho, and Montana. The Nez Perce used advance and rear guards, skirmish lines, and field fortifications against the much impressed General Howard. Freezing weather, non-stop battle, lack of food, and lack of blankets forced Joseph to eventually surrender during this week in capitalism, 1877. Years later in 1881, the great chief Sitting Bull would also grow wary of fighting and surrender to federal troops. The following words are attributed to Chief Joseph at his formal surrender just 40 miles south of Canada.

“I am tired of fighting. Our Chiefs are killed; Looking Glass is dead, Ta Hool Hool Shute is dead. The old men are all dead. It is the young men who say ‘Yes’ or ‘No.’ He who led the young men is dead. It is cold, and we have no blankets; the little children are freezing to death. My people, some of them, have run away to the hills, and have no blankets, no food. No one knows where they are - perhaps freezing to death. I want to have time to look for my children, and see how many of them I can find. Maybe I shall find them among the dead. Hear me, my chiefs! I am tired. My heart is sick and sad. From where the sun now stands, I will fight no more forever.”

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This Week in Capitalism: September 26th 1984

October 1st, 2006 by Manila Ryce

During the Tang and Song dynasties, Hong Kong was an important trading region. During the Qing dynasty, Europe increased its world trade, and China’s huge population offered limitless products which were in high demand. However, China had a one-way trading policy with the West. Europeans bought silk, porcelain, spices, and tea from China, but were not allowed to sell their goods in return. China would only accept silver as payment, fearing that a flood of European goods would contaminate and damage their culture.

Great Britain and France became worrisome over the depletion of their stockpiles of precious metals. They had to find a product Chinese merchants would accept other than silver, and that product was opium. Opium had been used in traditional Chinese medicine earlier in history, but was eventually banned because of its addictive qualities. Between 1821 and 1837, drug trade to China increased fivefold, with an estimated 2 million Chinese being addicted to opium. In 1838, the Qing government tried to ban the opium trade, so Great Britain declared war.

China’s longstanding policy of alienation proved detrimental against the world’s leading technological power. China’s navy of wooden junks was no match for the steam-powered ironclads of the Royal Navy, nor were its ground forces prepared for the modern rifles and artillery of the British. In 1842 the Qing surrendered, signing the Treaty of Nanking. Europe now had unrestricted access to Chinese ports and Hong Kong was ceded to Great Britain. The following year, Hong Kong became a crown colony of the United Kingdom.

This week in capitalism marks the day in 1984 when Britain and China finally agreed on a declaration to end 150 years of European rule in Hong Kong. Chinese authorities agreed to take over Hong Kong’s defense and foreign affairs in 13 years while allowing the city to maintain its local autonomy. The agreement also insisted that the mainland Chinese government would leave Hong Kong untouched for 50 years after it was handed back to its people. The UK ambassador to China, Sir Richard Evans, said the joint declaration was “the practical embodiment of the imaginative concept of one country, two systems”.

Hong Kong still has an unrestricted laissez-faire system imposed by the British. Only one quarter of the city is considered developed with around one third of its children living below the poverty level. In 1997, control of the economically lucrative colony was handed back over to the Chinese as promised. Had Great Britain continued to hold on to Hong Kong, as many suggested they should, they may not have emerged this time as successful as they did after the opium wars.

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This Week in Capitalism: September 22nd 1980

September 23rd, 2006 by Manila Ryce

The Iran-Iraq War officially began on September 22nd when Iraq invaded Iran. The war resulted in 1 million casualties and cost $1.19 trillion in USD. Although there had been border disputes between Iraq and Iran since they were called Mesopotamia and Persia, the hostilities between the nations grew intense as oil was discovered under the disputed territory of Khuzestan. Other territories, such as the Shatt al-Arab waterway, were also called into question. Iraq encouraged Arabs in Iran to rebel against their government, while Iran encouraged Kurds in Iraq to do the same against Iraq’s leadership.

Saddam had entertained the idea of successfully invading Iran since before he was president. Such a takeover would strengthen his oil trade and elevate Iraq as a great regional power. In 1979, the pro-western Shah of Iran was ousted in the Iranian Revolution, and replaced by the Ayatollah Khomeini. The Ayatollah despised the secularism of Saddam and the Ba’ath Party, and threatened to spread Islamic revolution throughout the Middle East. However, due to the degenerating state of Iran’s army and the destabilization of the country, Saddam saw this as the perfect time to strike.

After the Iran-Iraq War had been raging for two years, the US started to make its backing of Iraq more public and normalized relations with its government. The US began to openly supply Iraq with intelligence, economic aid, and weapons. President Reagan declared that the United States “could not afford to allow Iraq to lose the war to Iran”, and that we “would do whatever was necessary and legal to prevent Iraq from losing the war with Iran.” This policy was formalized by Reagan in the National Security Decision Directive in June of 1982.

In 1987, the US itself started to actively attack Iran by destroying its oil platforms and gunboats. In 1988, while in Iranian waters, a US cruiser shot down Iran Air Flight 655, resulting in the death of all 290 passengers. Because of the bad press, the US eventually paid compensation but never apologized. In 1984 Iraq started to use chemical weapons against Iran. Nonetheless, from 1985–1989, US companies sent numerous fatal biological cultures, including anthrax, to Saddam. These transactions were all done with the approval of the Reagan and the first Bush administrations. Eight shipments of cultures, which were later classified by the Centers for Disease Control as having “biological warfare significance”, were approved by the Department of Commerce. Iraq received at least seventy-two shipments of clones, chemicals, and germs, all with chemical and biological warfare potential. The Saddam Regime further used chemical weapons against the Kurds in northern Iraq in 1988, yet the U.S. continued to ship them deadly substances.

However, America was not only supplying Iraq with weaponry. According to a report put out by the US Congressional Committees Investigating the Iran-Contra Affair, “the sale of U.S. arms to Iran through Israel began in the summer of 1985, after receiving the approval of President Reagan.” These covert sales to Iran included over 2,000 anti-tank missiles, 235 parts kits for surface-to-air missiles, 18 F-4 fighter-bombers, 46 A-4 Skyhawk fighter-bombers, and almost 4,000 missiles. Additionally, “unverified reports alleged that Israel agreed to sell Iran AIM-9 Sidewinder air-to-air missiles, radar equipment, mortar and machinegun ammunition, field telephones, M-60 tank engines and artillery shells, and spare parts for C-130 transport planes.” The London Observer estimated that Israel’s arms sales to Iran totaled $500 million USD a year while Time Magazine reported that the Israelis had set up Swiss bank accounts for obvious reasons.

What is widely known, but seldom discussed is that in 1980 Saddam was not only an ally of America, but encouraged to invade Iran (a country three times that of Iraq) with US support. The US was weary of the Iranian Revolution, for good reason, and wanted to prevent Iran becoming the regional superpower. However, the US did not want Iraq to dominate either. Therefore, the US decided to conduct a policy of duel containment. Henry Kissinger made the policy clear when he said, “The ultimate American interest in the war is that both sides should lose”. After eight years of bloodshed and tremendous debt, with none of the issues that started the war being resolved, neither country emerged victorious except for America.

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This Week in Capitalism: September 11th 1973

September 17th, 2006 by Manila Ryce

In 1964 Chile, Salvador Allende was a Marxist presidential candidate. Because of his anti-capitalist stance, the CIA spent millions to defeat him. Due to radio and print propaganda funded by the US, Allende lost the election that year. Allende ran again in the 1970 presidential election, and again the US funded his opponents’ campaigns to ensure his defeat. Much to the dismay of the US, Allende won the majority vote that time, which would make him the first democratically elected Marxist president in the world.

President Nixon expressed his fears that Chile would become “another Cuba”, so formal instructions were sent to the CIA base in Chile to prevent Allende from taking office after he was declared the winner of the presidential elections. Part of the instructions said, “It is firm and continuing policy that Allende be overthrown by a coup. It would be much preferable to have this transpire prior to 24 October but efforts in this regard will continue vigorously beyond this date. We are to continue to generate maximum pressure toward this end, utilizing every appropriate resource. It is imperative that these actions be implemented clandestinely and securely so that the USG [United States Government] and American hand be well hidden…”

General Rene Schneider was the Chief Commander of the Army at the time. Because he was a constitutionalist, Schneider would not support a coup. Twelve days before Allende assumed the presidency on November 3rd 1970, two groups, who were funded and armed by the CIA, attempted to kidnap Schneider for opposing Allende’s removal. During the operation Schneider was killed inside his car. This incident rallied even more support behind Allende.

Upon assuming power, Allende began to carry out his platform of implementing socialist programs in Chile, called La vía chilena al socialismo (”the Chilean Way to Socialism”). This included nationalization of large-scale industries (notably copper mining and banking), and government administration of the health care system, educational system, a program of free milk for children, and a greatly expanded plan of land seizure and redistribution (already begun under his predecessor Eduardo Frei Montalva, who had expropriated between one-fifth and one-quarter of all properties liable to takeover). The Allende government’s intention was to seize all holdings of more than eighty basic irrigated hectares. Allende also intended to improve the socio-economic welfare of Chile’s poorest citizens; a key element was to provide employment, either in the new nationalized enterprises or on public works projects.

Allende’s government also froze all prices while raising salaries, and announced it would default on debts owed to international creditors and foreign governments. Between 1970 and 1973, the CIA spent 8 million dollars to destabilize Chile. Despite a decline in the Chilean economy, Allende’s Popular Unity coalition increased its vote to 43 percent in the parliamentary elections of 1973. This week in capitalism, under the orders of Allende’s political opponents, the military staged the Chilean coup on 9/11/73. With gunfire and explosions in the background, president Allende gave a final speech to Chileans on live radio, speaking from the Presidential Palace and referring to himself in the past tense. He stated that his commitment to Chile did not allow for an easy way out and that he intended to fight until the end. After the speech it is thought that Allende committed suicide with an AK-47 given to him as a gift from Fidel Castro. An engraving on the rifle read, “To my good friend Salvador from Fidel, whom by different means try to achieve the same goals.”

Augusto Pinochet, the Commander-in-chief of the Army, established a military dictatorship immediately following the coup. Pinochet (who closely resembles M. Bison in the picture) proclaimed himself president and took economic policy advice from American laissez-faire economist, Milton Friedman. He deregulated business, encouraged privatization, abolished minimum wage, rescinded trade union rights, privatized the pension system, state industries, and banks, and lowered taxes on income and profits. Pinochet was in power for 17 years, ruthlessly persecuting critics and political opponents. His dictatorship was well supported by the US government. The CIA later put many of Pinochet’s officers on their payroll as contacts, even though many of them were known to be involved in human rights abuses. To this day, Pinochet has not been prosecuted for his human rights violations in Chile and neighboring countries.
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This Week in Capitalism: September 7th 1992

September 9th, 2006 by Manila Ryce

One long-term goal of apartheid in South Africa was to move blacks into independent “homelands”. A small percentage of South African land (13 percent) was divided into ten homeland states. Each state was destined to gradually self-govern and gain its independence from South Africa. Once a homeland gained its independence, the residents of that state would have their South African citizenship revoked, and replaced with a homeland citizenship. Blacks would no longer be citizens of South Africa, but “guest laborers” who merely worked in South Africa. In short, whites would be citizens, while a black person in South Africa would legally be considered a foreigner. This system allowed for whites, who were a shrinking minority, to retain control over the remaining 87 percent of South African land.

Ciskei was a “homeland” state for Xhosa-speaking people. In 1981 it became the fourth homeland to be declared independent by the South African government. In 1990, Joshua Oupa Gqozo ruled over Ciskei as a harsh dictator. In 1992, many of the legal foundations of apartheid in South Africa were being removed, and so the African National Congress (ANC) pressed for Ciskei to return to South Africa. Gqozo and other homeland leaders, content with their power, refused.

On this week in capitalism, the ANC organized a march to demand that Gqozo and his government step down and allow Ciskei to be re-absorbed into South Africa. There were around 50,000 people at the protest which was scheduled to march to the capital of Ciskei. However, when demonstrators started to cross the border into Ciskei they were indiscriminately fired upon by soldiers. 28 people were killed and hundreds more injured as two machine gun volleys and grenades caused demonstrators to run for their lives. Four men were shot in the back as they attempted to flee. The ANC released a statement saying that “No warning was issued, and no attempts were made to disperse the crowd using non-lethal means.”

Despite the massacre at the Ciskeian border, negotiations continued between the ANC and the president of South Africa. Gqozo refused to participate in the multiracial negotiations for a post-apartheid constitution. In 1994 Nelson Mandela, head of the ANC, became the first black President of South Africa. After the election, Ciskei and all other homeland states were re-absorbed.

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This Week in Capitalism: August 29th 2005

September 2nd, 2006 by Manila Ryce

Many were lead to believe that the global “War on Terror” was being waged to keep Americans safe. That the lives and safety of the American public was the top priority to the American ruling class. As the administration was defending its war as a safeguard for the American public, Hurricane Katrina hit New Orleans.

The scenes of intense human suffering, hopelessness, squalor, and neglect amidst the wreckage of what was once New Orleans have exposed the rotten core of American capitalist society before the eyes of the entire world-and, most significantly, before those of its own stunned people.

The reactionary mythology of America as the “Greatest Country in the World” has suffered a shattering blow.

Hurricane Katrina has laid bare the awful truths of contemporary America-a country torn by the most intense class divisions, ruled by a corrupt plutocracy that possesses no sense either of social reality or public responsibility, in which millions of its citizens are deemed expendable and cannot depend on any social safety net or public assistance if disaster, in whatever form, strikes.

The storm knocked out power and submerged up to 80 percent of New Orleans in 6ft of water. This devastation was not due solely to a natural disaster, as the Republicans claim, but to the neglect of the infrastructure which kept New Orleans livable. The breach of the levees was the direct result of essential social services being cut and government agencies, in charge of alleviating poverty and coping with disasters, being dismantled. The needs of society and the actions of the government ran contradictory, with the latter defeating the former.

Evacuees were told to seek shelter in the superdome. Tens of thousands gathered there only to find a lack of food, water, and sanitary facilities. Two days after the hurricane struck, a public health emergency was finally declared. FEMA director, Mike Brown, was profoundly unqualified to deal with the situation. He was appointed to his position by Bush in January of 2003. Hurricane damage to oil facilities also gave multi-million oil companies another excuse to raise gas prices and profit from the disaster.

The United States government showed the world just how little they care about the American people by failing the people of New Orleans. Rather than address the concerns and outrage of the public, they resorted to finger-pointing to save their jobs rather than our lives. On Good Morning America, the president declared that there would be “zero tolerance” for looters. When Dianne Sawyer suggested that the oil companies, who had reported record profits, should cede a share of their earnings to disaster relief, President Bush instead called on the American people to “send cash”. Over seventy countries donated hundreds of millions of dollars to the victims of Katrina before our own government made any real attempt to help. In some cases, aid was actually turned down by the US government. Meanwhile, American politicians patted each other on the back for the most minimal of gestures while people in New Orleans literally died of starvation and disease in the streets. At least 1,836 people died from the Hurricane and subsequent mayhem left in its wake.

In a televised event to raise money for victims of the hurricane, rapper Kanye West attacked the media for its unbalanced portrayal of blacks. “If you see a black family, it says they’re looting. See a white family; it says they’re looking for food.” Kanye then attacked the president for his inept response by saying “George Bush doesn’t care about black people”. While that statement may be true, West would’ve been more accurate if he would’ve said “George Bush doesn’t care about poor people”. His Afro-centric remark neglected the fact that non-blacks were also suffering in New Orleans. Kanye was brainwashed by the age old diversion set forth by rulers to keep the masses fighting amongst themselves. Kanye believed that racial discrimination was the real issue rather than social discrimination. This mentality pits poor blacks against poor whites, creating a never-ending struggle to nowhere. One year later, many parts of New Orleans are still without water and power while the majority of politicians who failed the American people during Katrina sit comfortably.
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This Week in Capitalism: August 21st 1983

August 28th, 2006 by Manila Ryce

In the Philippines, Benigno Aquino was a senator and leading oppositionist to the autocratic rule of Ferdinand Marcos. Aquino came from a family of politicians. His father held office under two presidents, while his grandfather served under the first president, Emilio Aguinaldo, who led the resistance against Spanish and later American occupation of the Philippines. Before his political career, Benigno was an award winning journalist at the young age of 18. He became municipal mayor by 22, vice-governor by 27, governor of Tarlac and secretary-general of the Liberal Party by 29, and the youngest elected senator in the country by age 34.

Being the only member of the Liberal Party in the senate made Aquino a target for Marcos and his allies. However, Aquino would not be intimidated. From the start, Aquino attacked the Marcos regime for “ballooning the armed forces budget”, “militarizing (the) civilian government offices”, and described the first lady’s $50 million Cultural Center as “a monument to shame”. For his outspoken criticism he was selected as one of the nation’s most outstanding senators by the Philippine Free Press.

The snowball really started rolling in 1971, at a rally for the Liberal Party, when nine people were killed and 85 wounded as two grenades were thrown on stage where candidates were lined.President Marcos and his Nacionalistas Party blamed Aquino for the incident, suggesting he was trying to eliminate competition from within his own party. The president immediately suspended the Writ of Habeas Corpus, using this specific act of terrorism as justification (sound familiar?). President Marcos then vowed that the terrorists would be apprehended within 48 hours; arresting large numbers of communists instead. About one year later, on September 21, 1972, Marcos declared martial law. Benigno Aquino and several other political opponents to Marcos were subsequently arrested and imprisoned on false charges.

In 1975, Aquino had undergone a 40 day fast to protest the injustice of his imprisonment. Not surprisingly, he was found guilty of murder, illegal possession of firearms, and subversion by a government-controlled Military Commission. Aquino was sentenced to death, but was spared the firing squad by Marcos who thought such a fate would mark him for martyrdom. In 1978 Aquino was allowed to take part in a televised interview which showed the populace that prison had not quelled his spirit to fight. From prison he started his own party, the People’s Power, which had a huge following and ran 21 candidates for Parliament. However, due to election fraud, all his candidates lost.

After nearly 9 years in his solitary cell, Aquino suffered two heart attacks. President Marcos was in an awkward position. With the country overwhelmingly in support of Aquino, he had to offer him the best medical attention or face the consequences of an already angry public. The first lady, Imelda Marcos, offered Aquino a passage to America for a coronary bypass on two conditions: 1.) That he would return; 2.) While in America, he would not speak out against the Marcos regime. Aquino agreed, had a successful operation in Dallas, Texas, and broke his promise to the first lady, stating that “a pact with the devil is no pact at all”. Spending three years in self-exile, Aquino wrote two books and gave a series of lectures and speeches around the US about the abuses of the Marcos regime. Aquino’s popularity only grew larger in the Philippines.

In 1983 Aquino grew evermore concerned over the political situation in his homeland and the failing health of President Marcos. Confident that he could reason with Marcos to return the Philippines to the people and establish a true democracy, Aquino decided to go back. His goal was to convince Marcos to step down from his 20 year reign and establish a peaceful regime before an extremist takeover made such a change impossible. Well aware of the dangers which awaited his return, he said, “the Filipino is worth dying for… if it’s my fate to die by an assassin’s bullet, so be it”. This week in capitalism, just minutes after his plane landed, Benigno Aquino was taken into custody by soldiers and killed by an assassin’s bullet to the back of the head. Government investigators claimed the assassin was Rolando Galman, who was immediately killed at the scene by soldiers. However, the majority of the country didn’t buy the story and accused Marcos of ordering the execution. Fatefully, Aquino did become a martyr for the opposition. The Philippines received worldwide attention and Marcos supporters, such as President Reagan, began to distance themselves. Eventually the People Power revolution forced Marcos into exile after another fraudulent election declared him the winner. Aquino’s widow, Cory Aquino, was then placed as president of the Philippines.

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This Week in Capitalism: August 20th 1866

August 20th, 2006 by Manila Ryce

“I’ve worked in the mill in my day, until nine o’clock at night, from seven in the mornin’…I wouldn’t want to go back to it, and I don’t think anyone else would. An eight hour day is long enough.”
Matthew White, circa 1938-1939

Founded in 1866, The National Labor Union was the first national labor federation to be formed in the United States. The National Labor Union (NLU) brought national labor unions and eight hour leagues across the nation together. Though the NLU did not achieve much success, dissolving in 1872, it did pave the way for other organizations like the Knights of Labor and American Federation of Labor (both of which also excluded workers based on their race, namely the Chinese).

Despite the racist policy of these organizations, it is important to note their positive historical significance. On this week in capitalism, the National Labor Union called on Congress to mandate an eight-hour workday. Although the NLU failed to persuade Congress to enact this labor reform, it did heighten public awareness of labor issues and increased public support. Later groups would prove more effective in wining the right for the eight-hour day.

P.S. I know this post is short, but the weekly “This Week in Capitalism” was skipped over while I was on vacation and the only people who will see this post now are you poor saps scanning the archives. Sorry.

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