Last Tuesday’s celebration hangovers have finally started to
wear off, and the pieces are beginning to fall into place. Change will be
coming to Washington
in January, but it is difficult to decipher what form it will take. Early
clues, however, suggest that Barack Obama’s administration will prove unlikely
to alter the fundamental political machinery that has led us into war and
economic turmoil. Below is a brief summary of Obama’s potential choices for a
few key roles in his administration.
Chief of Staff
Obama’s key White House position has gone to Rep. Rahm
Emanuel of Illinois.
While Emanuel knows his way around the corridors of Washington, qualifying him in the
traditional sense, this alone doesn’t mean he’s the guy you want drawing up
Obama’s policy papers day after day.
For starters, Emanuel is a shameless neoliberal with close
ties to the Democratic Leadership Council (DLC), even co-authoring a strategy
book with DLC president Bruce Reed. Without Emanuel, Bill Clinton would not
have been able to thrust NAFTA down the throats of environmentalists and labor
in the mid-1990s. Over the course of his career, Emanuel’s made it a point to
cozy up to big business, making him one of the most effective corporate
fundraisers in the Democratic Party. He’s also a staunch advocate of Israel’s
occupation of the Palestinian territories.
Emanuel’s shinning moment came in 2006 as he helped funnel
money and poured ground support into the offices of dozens of conservative
Democrats, expanding his party’s control of the House of Representatives.
Emanuel, who supports the War on Terror,
and expanding our presence in Afghanistan,
worked hard to ensure that a Democratic House majority would not alter the
course of US military objectives in the Middle East.
In short, Rahm Emanuel is not only a poor choice for Obama’s
Chief of Staff; he’s one of the least progressive picks he could have made.
While he may have decent views on abortion, tax policy, and Social Security,
Emanuel’s broader vision is more of the same: war and corporate dominance.
Treasury Secretary
For arguably the most important position Obama will be
appointing, the president-elect may pick well-regarded economist Paul Volcker,
former chairman of the Federal Reserve under Jimmy Carter and Ronald Reagan.
Volker is one of Obama’s closest economic advisors and is thought to be the
top-choice for the position of Treasury secretary.
During the late 1970s and early 1980s, Volker, in an attempt
to cut inflation, dramatically raised interest rates, which helped the elite
maintain value in their assets but strangled the working class as credit dried
up.
In his book, A Brief
History of Neoliberalism, David Harvey writes that Volker personified one
of the key facets of the neoliberal era.
“[Volker] engineered a draconian shift in U.S. monetary
policy. The long-standing commitment in the U.S. liberal democratic state to
the principles of the New Deal, which meant broadly Keynesian fiscal and
monetary policies with full employment as a key objective, was abandoned in
favour of a policy designed to quell inflation no matter what the consequences
might be for employment. The real rate of interest, which had often been
negative during the double-digit inflationary surge of the 1970s, was rendered
positive by fiat of the Federal Reserve. The nominal rate of interest was
raised overnight . . . Thus began ‘a long deep recession that would empty
factories and break unions in the U.S. and drive detour countries to the brink
of insolvency, beginning a long-era of structural insolvency.’ The Volker
shock, as it has since come to be known, has to be interpreted as a necessary
but not sufficient condition of neoliberalism.”
In supporting Henry Paulson’s bailout package, Volker would
not reregulate the banks nor provide more power to shareholders, he would
simply carry on one facet of neoliberalism: tightening federal budgets which
inevitably will put great budgetary pressure on federal agencies.
Another potential pick for the post is Robert Rubin, who
served under Clinton
in the same position and is currently director and senior counselor of
Citigroup. Rubin played a key role in abetting another neoliberal objective:
deregulation. Where Volker was hung up on economic austerity, Rubin pushed for
more deregulatory policies that ended up shifting jobs, and entire industries,
overseas.
Rubin even pushed for Clinton’s dismantling of
Glass-Steagall, testifying that deregulating the banking industry would be good
for capital gains, as well as Main
Street. “[The] banking industry is fundamentally
different from what it was two decades ago, let alone in 1933,” Rubin testified
before the House Committee on Banking and Financial Services in May of 1995.
“[Glass-Steagall could] conceivably impede safety and
soundness by limiting revenue diversification,” Rubin argued.
While the industry saw much deregulation over the years
preceding these events, the Gramm-Leach-Biley Act of 1999, which eliminated
Glass-Steagall, extended and ratified changes that had been enacted with
previous legislation. Ultimately, the repeal of the New Deal era protection
allowed commercial lenders, like Rubin’s Citigroup, to underwrite and trade
instruments like mortgage backed securities along with collateralized debt and
established structured investment vehicles (SIVs), which purchased these
securities. In short, as the lines were blurred among investment banks,
commercial banks and insurance companies, when one industry fell, others could
too.
Robert Rubin is in part responsible for supporting the
policies that pushed us to the brink of a great recession. When the subprime
mortgage crisis hit, instability and collapse spread across numerous
industries.
Another name that is in the hunt for the top spot is
Lawrence Summers, who served during the last 18 months of the Clinton administration. Summers is greatly
responsible for expanding Rubinomics and is credited by many for the collapse
in the derivatives market, which later imploded the housing market.
Defense Secretary
While Obama’s choice for this important role is speculative,
quite a few fingers are pointing to Richard Holbrooke.
After Gerald Ford’s loss and Jimmy Carter’s ascendance into
the White House in 1976, Indonesia,
which invaded East Timor and slaughtered
200,000 indigenous Timorese years earlier, requested additional arms to
continue its brutal occupation, even though there was a supposed ban on arms
trades to Suharto’s government. It was Carter’s appointee to the Department of
State’s Bureau of East Asian and Pacific Affairs, Richard Holbrooke, who
authorized additional arms shipments to Indonesia during this supposed
blockade. Many scholars have noted that this was the period when the Indonesian
suppression of the Timorese reached genocidal levels.
During his testimony before Congress in February 1978,
Benedict Anderson of Cornell University cited a report that proved there never was
a United States arms ban,
and that during the period of the alleged ban; the US initiated new offers of military
weaponry to the Indonesians at Holbrooke’s request.
Over the years Holbrooke, who is philosophically aligned
with Paul Wolfowitz and other neoconservatives, has worked vigorously to keep
his bloody campaign silent.
Holbrooke described the motivations behind his support of
Indonesia’s genocidal actions: “The situation in East Timor is one of the
number of very important concerns of the United States in Indonesia. Indonesia,
with a population of 150 million people, is the fifth largest nation in the
world, is a moderate member of the Non-Aligned Movement, is an important oil
producer -- which plays a moderate role within OPEC -- and occupies a strategic
position astride the sea lanes between the Pacific and Indian Oceans . . . We
highly value our cooperative relationship with Indonesia.”
Other foreign policy advisors may also include the likes of
Madeline Albright, the great supporter of Iraq sanctions, which killed
hundreds of thousands of innocent people. Madeline Albright, when asked by
Leslie Stahl of 60 Minutes about the deaths caused by U.N. sanctions, infamously
condoned the deaths. “I think this is a very hard choice,” she said. “But the
price--we think the price is worth it.”
Samantha Power, cheerleader for humanitarian intervention,
also has Obama’s ear and may even entice him to put U.S. forces in Darfur.
“With very few exceptions, the Save Darfur campaign has
drawn a single lesson from Rwanda:
the problem was the US
failure to intervene to stop the genocide. Rwanda
is the guilt that America
must expiate, and to do so it must be ready to intervene, for good and against
evil, even globally. That lesson is inscribed at the heart of Samantha of Power’s
book, A Problem from Hell: America and
the Age of Genocide. But it is the wrong lesson,” writes author Mahmood
Mamdani in the London Review of Books.
As Mamdani continues: “What the humanitarian intervention
lobby fails to see is that the US did intervene in Rwanda, through a proxy . .
. Instead of using its resources and influence to bring about a political
solution to the civil war, and then strengthen it, the US signalled to one of
the parties that it could pursue victory with impunity. This unilateralism was
part of what led to the disaster, and that is the real lesson of Rwanda . . . Applied
to Darfur and Sudan, it is sobering. It means recognising that Darfur is not
yet another Rwanda.
Nurturing hopes of an external military intervention among those in the
insurgency who aspire to victory and reinforcing the fears of those in the
counter-insurgency who see it as a prelude to defeat are precisely the ways to
ensure that it becomes a Rwanda.”
Other names in the running include John Kerry, who as many
know, ran an antiwar campaign for president in 2004. A full supporter of the War on Terror, with a hard-line on Iran, Kerry would certainly not alter the U.S. relationship in the Middle
East.
Regarding the Department of Defense, it looks as if Robert
Gates will still control the top spot, with no alterations made to the DoD or
its inflated budget.
The next step
While the election of Barack Obama is a blow to George W.
Bush-Republicanism and a gain for racial equality in this country, it is in
many ways only a symbolic victory. The future of the U.S.’s foreign and
economic agenda will continue to be saturated with ideologies and individuals
that are directly responsible for our current predicament, both in the Middle East and domestically.
Celebrating the end of the ugly Bush era is one thing.
Celebrating the continuation of their policies with a different administration
in the White House is quite another. With these prospective appointments, Obama
seems to be moving backwards to Clintontime. This may be sufficient change for
some, but it far from a progressive push toward social, economic, and environmental
justice.
For significant change to happen, the kind that is needed in
order to mend the wounds of the Bush years, we have to put down our Obama signs
and force Congress and the new administration to end the wars in the Middle
East, and push for regulating the financial industry while providing true
universal health-care and economic safety nets for all Americans.
Given the make up of his potential advisors, we’re in for a
long uphill battle. So let’s drop our illusions and start organizing, beginning
with a discussion of what “organizing” even means in today’s political climate.
Joshua Frank is co-editor of Dissident Voice and
author of “Left Out! How Liberals Helped Reelect George W. Bush” (Common
Courage Press, 2005), and along with Jeffrey St. Clair, the editor of the brand
new book “Red State Rebels: Tales of Grassroots Resistance in the Heartland,”
published by AK Press in July 2008. He can be reached at brickburner@gmail.com.