Nemesis

By Con George-Kotzabasis—January 9, 2012

In a hostile world only the strong have the right to indulge in hope. Thucydides

Ah, that memorable, fascinating, admirable, and politically insightful and intrepid subject, Margaret Thatcher, the Iron Lady, that challenges almost all of contemporaneous political leadership that is scrambling on all its fours–with some notable exceptions such as Lee Kuan Yu, of Singapore and Antonis Samaras, of Greece–from Obama to Zapatero to Merkel and Sarkozy, who instead of standing on the shoulders of political giants, like Thatcher, to command events, they have been overwhelmed and overcome by them.

The characteristic spending profligacy of Labour socialist governments over a number of years, and the excessive borrowing and inflation that resulted by the latter’s policies that brought the UK into economic stagnation gave Margaret Thatcher the opportunity to win the election in 1979 with a sizable majority. Her victory would bring not only the transformation of British politics but would also spawn, with a small astute coterie of others, the seeds of a profound change on the political landscape of the world. Further, by re-introducing forcefully the idea of privatization as a dynamic concept among the economic detritus left by Labour’s deficit-laden nationalization of industries, she would place the country on the trajectory of economic efficiency and generation of wealth for the benefit of all Britons. To open markets to the world she abolished all exchange controls on foreign currency five months after coming to power. The UK from being the poorest of the four major European economies in 1979 became by the end of ten years under Thatcher’s stewardship the richest among them. In a series of economic policies packaged by Milton Friedman’s and Frederick Hayek’s monetarist theories, Britain’s GDP grew by 23.3% during this period outpacing that of Germany, France, and Italy. However, to accomplish the latter goal, she would have to confront the power of unions decisively, which, in a ceaseless campaign of strikes and imprudent and irrational demands were ruining the British economy. In 1979, at the apex of union power, Britain had lost 29.5 million working days to strikes, whereas at its nadir, under the robust stand of Thatcher and her strong blows against it that led to the defeat of unions, in 1986, the figure of lost working days was 1.9 million. The Moscow trained communist Arthur Scargill, secretary of the Mining Unions, had unleashed in 1984-85 a myriad of strikes with the aim to obstruct the Thatcherite pro-market reforms that would put Britain on the roller skates of economic prosperity. By the end of that year that shook the foundations of British industry and broke the morale of some of her Cabinet members–that prompted Thatcher in a memorable quip to say to them, “You turn if you want to. The lady is not for turning.”—the red flag became a trophy alongside the Argentinian flag in her collection of victories, as Arthur Scargill conceded his defeat.

In international affairs she questioned Kissinger’s policy of détente toward the Soviet Union as she believed strongly that Communism should not be accommodated but overcome. For this implacable stand the Soviet Army’s newspaper Red Star christened her the “Iron Lady.” Together with President Reagan, she planted the diplomatic dynamite under the foundations of the Soviet empire that would eventually bring the fall of the Berlin Wall and the end of Lenin’s benign Marxist dream that had turned back to its true nature as a nightmare of Gulags and Killing Fields.

Thatcher in the 1980’s fiercely opposed the European economic and monetary integration. To her the European construction was “infused with the spirit of yesterday’s future.” In the kernel of this construction laid the central “intellectual mistake” of assuming that “the model for future government was that of a centralized bureaucracy.” And she was prophetic to the current events and crisis of Europe when she argued that German taxpayers would provide “ever greater subsidies for failed regions of foreign countries,” while condemning south European countries to debilitating dependency on handouts from German taxpayers.” She concluded, “The day of the artificially constructed mega-state is gone.”

However, no statesmanship is without its warts. In 1986 prohibition of proprietary trading went out; the separation between commercial and investment banks was abrogated; and ‘casino banking’ took off, which without these changes would not have happened. Her critics accused her of promoting greed which she personally abhorred. Also, the introduction of the poll tax on adult residents was most unpopular among Britons and sparked the Poll Tax Riots on March 31, 1990, that instigated an internal coup against her that ousted her from her premiership.

Margaret Thatcher entered number 10 Downing Street with her strong character and astute political perceptiveness with panache that destined her, like all great statesmen, to “walk beneath heaven as if she was placed above it,” to quote the seventeenth-century French political philosopher, Gabriel Naude. She will enter the ‘gate of heaven’ not as the frail distracted old woman, as she was depicted in the film made by Phillida Lloyd, but as the iron lady who will never die and continue to show the way.

I rest on my oars: your turn now…

The following exchange between me and Professor of Economics Yanis Varoufakis at Athens University took place on his blog about the capitalist system under the post:

Ending 2011with a fable for our times-December 24, 2011

December 24, 2011 at 03:14 #

Kotzabasis says,

Is Amartya Sen’s absolute prosperity and relative inequality of the capitalist system vulgarly to be replaced by Yanis Varoufakis’s “despicable inequality?”

Professor Varoufakis distorts and defames the whole history of the dynamism of entrepreneurial capitalist wealth that shot up the standard of living of the masses to “Himalayan” heights. To claim that capitalist “wealth …needs poverty to flourish,” is just an ornamental academic trapping empty of history and fugitive from serious thought. Capitalism, like everything else in life, was never meant to be “stable” but a process of Schumpeterian “creative destruction.” But this can only be understood and accepted by realists and not by heroic ideologues, like Professor Varoufakis.

Professor Varoufakis says,
◦December 24, 2011 at 15:32 #

It is always good to encounter intransigent Panglossian views in the post-2008 world. There is something touching about undying faith, even when of the toxic variety.

December 25, 2011 at 01:48 #

Kotzabasis says,

Professor Varoufakis

Are capitalist entrepreneurial creativity, wealth, and prosperity based on “intransigent” “Panglossian” naivety? And is the history of capitalism to be truncated and concentrated naively and un- imaginatively between 2008 and 2011 for you to make your uninspiring and toxic argument?

Professor Varoufakis says,

December 25, 2011 at 11:56 #

No, capitalism’s wonders have nothing to do with Panglossian naïveté. But your determination to portray it as the best of all possible systems exudes it. As for my assessment of capitalism, and your claim that I truncate the latter’s history to a period around 2008, feel free to judge it. But only after you acquaint yourself with it. (For had you read it, eg either of my last two books, you would have realized that I truncate nothing. And that I go to great lengths to analyse capitalism’s contradictions, something that entails a celebration of its achievements as well as an exposition of its failures.) Till you are prepared to become acquainted with what I am really saying, before you attack it, I shall treat you as no more than a minor Panglossian.

Kotzabasis says,

December 26, 2011 at 02:46 #

Professor Varoufakis

Thank you for your advice how to overcome my “minor Panglossian” status. But unfortunately for me I’m bound to retain it, as your crass defamation of capitalism in your POST, hardly incentivized me, to use a term of your “little man” John Howard, to read your books and be acquainted with your thoughts. And indeed, my preference is to be “treated… as a minor Panglossian” than go through the treat to major on your ‘Pandistortions’ and jaundiced strictures on capitalism.

But to come to the gist of the matter in hand, my riposte to you was not to either of your two books, which, as I imply above I have not read. My reply was specifically to your post where you wistfully and wrongfully write, “Should we dare to hope of a new era in which WEALTH NO LONGER NEEDS POVERTY TO FLOURISH,” and of the illusion that “capitalism can be stable” and where you vulgarly and gracelessly contend that capitalism creates “DESPICABLE INEQUALITY,” and in your reply to my first post where you refer to the “post-2008 world.” It might well be that these ‘populist flourishes’ had not meant to be of any intellectual seriousness and their only aim was na deleazei ( to allure) and enthuse the ignorant to rush and become volunteer workers to your construction of your ‘matchsticks’ good society, as a replacement to the infernal deeds of capitalist society. But could one do this at the cost of one’s intellectual integrity?

And it is most surprising that the Gargantuan, indeed, Cyclopean efforts that you have put in your Modest Proposal(MP)—although one must note that Cyclopean efforts without a Ulysses are fated to be wasted efforts—have the aim to save Europe, a system that according to you produces genetically “despicable inequality.” Fortunately, however, for those condemned to this despicable inequality, but unfortunately for you, Andreas Koutras’s fatal Jovian bolts demolished to ashes the MP, from which no contriving number of revisions to it will give rise to a Phoenix solution that will salvage the European Union from its peril.

Lastly, to state that “to analyse capitalism’s contradictions… entails a celebration of its achievements as well as an exposition of its failures,” is to state the obvious.

Professor Varoufakis says,

December 27, 2011 at 04:33 #

Impressed by your dedication to keep knocking down my (according to you) already demolished, and perpetually ridiculous, arguments, as well as by the amount of time you dedicate to a blog (mine) which you consider unworthy, I shall continue to post your comments. Carry on Sir!

Kotzabasis says,

Professor Varoufakis

With your Kazantzakian character I could never imagine that you would not post my comments.

By Con George-Kotzabasis—December 10, 2011

“We have forced every sea and land to be the highway of our daring.” Pericles

In the present storm-laden dark sky of Greece, a glittering new star has made its appearance which like a beacon of the sky is attempting to navigate the battered ship of Greece into calmer waters and save it from shipwreck. This new star is the leader of the Opposition of the New Democracy Party, Antonis Samaras, who since he has become its leader two years ago, has displayed unprecedented qualities of leadership and economic and political insight and daring, in this critical economic situation that Greece traverses, that only a statesman of Periclean dimensions could exhibit.

The criticism of Samaras from early on as leader of the Opposition of the Papandreou government, which he has depicted as amateurish and inept, has been totally justified. His early warnings that the policies of the socialist government of Papandreou were wrong and the torrent of taxes that the latter rained upon the middle classes would be disastrous for the economy. In October 2009, when Papandreou began his premiership, public debt was 298 billion euros, 125% of GDP. Today it has reached the whopping amount of 360 billion euros, 165% of GDP. Gross National Product in 2009 was 238 billion and presently has shrunk to 218 billion. According to OECD estimates it will decrease even more by 6% in the near future and unemployment will increase to 18.55%, affecting tragically younger people.

Further, Samaras predicted that the first EU Memorandum that imposed draconian austerity measures on Greece would neither decrease the budget nor would it put the economy on a track of recovery. As an economist he cogently argued that in conditions of deep recession austerity measures would exacerbate the economic crisis not dampen it. He was severely criticized and reprimanded when the New Democracy Party voted in parliament against the extreme austerity measures. Moreover, he had the moral strength and political insight not to be tempted to fall to the seductive calls of Papandreou to participate in a unity government to deal with the national crisis. Samaras gave as his strong reasons that since the PASOK Government was refusing to change its economic policies, that followed the blueprint formulated in the European Memorandum without attempting to modify it in certain crucial parts that could deter the further weakening of the economy, and which had failed the country, he, and his party, would not take part in a coalition government merely for the purpose of being an “accomplice” to these flagrantly wrong policies.

Samaras made a series of proposals that he encapsulated in his “Restart of Greece” by which the country could avoid the shoals that would cause its economic sinking. Last May in his Zappeio II Proposal the Leader of the Opposition presented a number of policies that could put Greece on the road of economic recovery and its corollary, the ability to pay off its debts. His restart programme would necessitate a “shock treatment” but with positive results. (a) A severe cut in public spending and on pensions, only above the level 700 euros. (b) A reduction of taxes on household income and businesses and a decrease in VAT in all sectors of the economy particularly in tourism which is pivotal to the Greek economy. (c) The abolition of all means test for the acquisition of a house and on capital repatriation so to inject money in the financial system. (d) The legalization of all buildings constructed without permits-there are more than a million-which will bring substantial increases in state revenue. (e) The state is to pay off all its debts to private individuals thus increasing market liquidity. And banks to commit to the real economy 20% to 30% of the guarantees they receive. This will further increase liquidity in the market and be an incentive to stop capital flight. (f) The state must not make any cuts to the Public Investment Programme with its high multiplier effect that is a powerful instrument to combat recession. (g) The acceleration of denationalization of public owned entities, which the Papandreou government was slow to implement, and the stimulation of the development of property which is the economic engine of the country. All these relief measures will increase state revenue and the Restart programme will balance the budget within just over three years, and start paying off Greece’s debt.

This daring Restart programme is not an abstraction and Samaras is quite aware that to concretize it he has to convince the lenders of Greece, i.e. the EU, of the urgent necessity of making changes to the present economic policies that clearly have failed, if the goals of the Memorandum of 26th of October, to which he is irrevocably committed, are to be achieved. This task of convincing Greece’s European partners of a change in tack has been eased, as High German officials admit now that the initial programme was wrong.

Finally, Samaras warns (not exactly in the following words) that this contagion that is threatening to engulf the European continent is not only economic and political but also social, and could lead to an explosion of European Spring protests that could not be contained and could transform radically the political landscape of the continent by the reappearance of the infernal star of the swastika in the political constellation of Europe.

But History has shown repeatedly nations at moments of great dangers, produce great and illustrious leaders that saves them at the eleventh hour from destruction and obliteration. From Themistocles to Charles Martel to Winston Churchill, the invasions of barbarians and dictators were defeated by the sagacity, imagination, and moral strength of exceptional leadership. Antonis Samaras from his words and deeds without any doubt belongs to this lineage of leadership. Greece facing the abyss of economic bankruptcy, poverty, and mob rule with the dangers that are historically inherent in such combination, i.e. the resurgence of fascism, has a unique leader in Antonis Samaras that could prevent this stupendous threat from consummating which would consign the country into the doleful state of penury and into the captivity of dictatorial regimes.

By Con George-Kotzabasis—November 23, 20011

The following proposal was sent to the Greek leader of the Opposition Antonis Samaras on 11-23-2011.

Dear Mr Samaras,

The following proposal might overcome the impasse of the signed guarantee without Greece losing its dignity and amour propre

The German politicians, like the Minister of Finance Wolfgang Schauble, who illogically and doltishly insist and persist in their demand that the leader of the Greek Opposition, Antonis Samaras, sign the Memorandum of the 26th of October as a condition of releasing the sixth packet of financial assistance to Greece, can be likened as an intellectually unguided German torpedo that sunk the Lusitania of Greek dignity and respect that are embodied in the democratic constitution and parliamentary institutions of the country. It was to the latter institutions and to the interim transitory government led by Lucas Papademos that the leader of the Opposition had made an explicit, unequivocal, and unconditional commitment to accept and implement (Subject to some modifications in regard to its implementation.) all the obligations emanating from the Memorandum. Therefore one is nonplussed with this EU demand for a written pledge by the leaders of the three major parties when all of them accepted all the conditions of the Memorandum unequivocally and unconditionally in Parliament and by giving their vote of confidence to the Interim Government of Lucas Papademos who was to initiate the implementation of the decisions of the 26th of October.

Surely the Germans are not so stupid, or they could be, as to disregard this essential and irremovable commitment the major parties made to the conditions of the Memorandum and demand in its place a formalistic signature. One therefore cannot avoid the suspicion that there might be a hidden agenda behind this ostensibly doltish demand, i.e. the “Sarajevo assassination” of Greece by the Germans, its ousting from the Eurozone by forcing Greece to default and to depart from the European Union. The leader of the Opposition must eschew from falling into this trap, if indeed, such a trap is set in the wings by the leaders of the European Union. But the “assassination of Greece” from the Eurozone could trigger an internecine economic war in Europe that could not be contained, as the sires of such a sinister plan might have hoped, and would lead both to the destruction of the euro and the European Union. Thus it is incumbent on Antonis Samaras’ statesmanship to be not only the saviour of Greece but also the saviour of Europe. This could be accomplished by the following stratagem. The leader of the Opposition giving a written guarantee of the acceptance of all the conditions of the Memorandum as demanded by the troika, but not sending it to the leaders of the European Union but sending it to the Greek Prime Minister, Lucas Papademos. And the latter will convey to the European leaders the consummation of the signed guarantee by the major parties that the former demanded as the sine qua non for the release of the sixth instalment. Hence, the consignment of the written guarantee within the precincts of the Papademos Government will shun any genuflection on the part of Greece toward Europe that would stigmatize and slur the dignity and amour propre of Greece.

The following exchange took place between an American radical liberal and me on the appointment of the two technocrats Mario Monti and Lucas Papademos as prime ministers of Italy and Greece.

Bruce Wilder says,

You seem to have lost the essential premise: the “looming economic catastrophe” is largely the creation of the technocrats, and “all the misery that implies” has been embraced by the technocrats with all the enthusiasm an 18th century physician had for purgatives and bleeding.

Con George-Kotzabasis says,

Bruce Wilder, your “essential premise” walks on crutches. In a physical crisis in which you might lose your leg you don’t stop from going to a surgeon just because there are bad surgeons about. To label all surgeons (technocrats) as incompetent and refuse to go under their knife is to lose your leg. That is why your argument, factually and intellectually, waddles on crutches.

Bruce Wilder says, 11.13.11 at 6:09 pm
Con George-Kotzabasis @ 105
If your life was threatened by a growing cancer, affecting your lungs or your kidneys, and you went to a surgeon, and the surgeon said, “To save your cancer, I recommend amputation of your leg,” I would hope you would run from the room, with your legs still intact.

These particular neo-liberal technocrats are just these sorts of mad incompetents, prescribing senseless maiming in place of a treatment plan. There are, apparently, no politicians available, to stand up and veto the insanity, “brave” and “charismatic” or otherwise.
The corruption and incompetence of the politicians—indeed, the whole polity—in Greece and Italy—played nearly as critical a part in the epidemiology of crisis as the neoliberal technocrats. It is worth remembering that the popular support for the European project has often rested on the hope of improving the quality of governance and institutions. For all the grousing over the minutiae of Brussels and the trivia of Strasbourg, the hope of European Union was always to promote high-minded, principled liberal institutions as a prophylaxis against authoritarianism and populist corruption. This was, I suspect, always a very big part of the appeal of the euro: German monetary policy for the South, an internationally respected currency immune to runaway inflations, etc. The Italians, as I recall, embraced the euro ahead of every other country; they were overjoyed to be rid of the lira, the joke currency of Europe, so inflated in value that coins were impractical—phone booths required a special token and street vendors gave candies in place of change. The euro is very popular in Greece as well, and I suspect that that popularity, as much as the fecklessness of politicians, is a factor in preventing Greece from taking the obvious step of unilaterally embracing default in abandonment of the euro. (Purely from a technocratic point-of-view, the equivalent of a competent surgeon would be a technocrat doing the preparations in secret, which would make a unilateral return to the drachma feasible. That’s the “right” thing to do for Greece, from a “technical” standpoint and from the standpoint of protecting Greece from the “amputation” of privatisation and a prolonged deflation. An efficient calculating machine would have been crystal clear from the outset that, on the numbers alone, Greek default was inevitable; delay could only prolong and intensify the suffering.)

The Big Picture, here, may well be that economic and institutional centralization has found its limits, at least for the moment. Certainly, the neoliberal architectural principles employed over the last 25 years are a bust. Are we so stupid that neofascism must follow? Many would say that authoritarianism was always an implied part of the neoliberal agenda.

Con George-Kotzabasis says, 11.14.11 at 2:10 am

Bruce Wilder
In serious discussion it is wise to enter it carrying a sieve in one’s hands to separate the wheat from the chaff.

Your crystal clear “efficient calculating machine” that would implement your proposal of default, would be no other than a wise, brave, imaginative, and humane TECHNOCRAT. So what exactly you have against technocrats? They are OK if they adopt your plan and only transported to Hades in toto for their mortal sins, if they don’t! Default was and is always an option. The distinguished economist Deepak Lal and exponent of the Austrian School of economics, long ago suggested such a schema. Lucas Papademos and Mario Monti both presumably have this option in their arsenal to be used as a last resort if everything else fails. But before they use this ‘nuclear’ option, they must try, and be given the right by all objective analysts and commentators, to resolve this economic crisis by ‘conventional’ means that could avoid a default which would open a big hole in their countries GDP and throw their people into pauperization for decades to come.

Bruce Wilder says, 11.14.11 at 2:37 am

Instead of “support the troops”, we are now asked to support the neo-liberal technocrats.

Con George-Kotzabasis, are we to take no account of the part the technocrats played in “designing” the euro? Are we to take no account of the failure of the ECB to carry out bank supervision or to regulate derivatives? It is a little late in the progress of neoliberal disaster capitalism to be attributing good faith, let alone expertise, to these bozos.

By Con George-Kotzabasis—November 02, 2011-11-02

Political midgets, a la Papandreou, have chosen to take the risk of the high wire act by this proposal of the referendum. Hoping that the people will vote for the lesser of two evils, i.e., accepting the debt deal as formulated in Brussels last week and rejecting default and departure from the euro zone. At a time when strong leadership is a prerequisite for diminishing the crisis that Greece is facing, Papandreou abdicates his own and passes it to the people through this future referendum. It’s as if the polloi had somehow a better knowledge and understanding of the critical dimensions of the economic situation and could provide a better solution to the crisis than the expertise of the economically and politically savvy.

Once again politicians, who are more concerned of holding power than of the future of their own country, are ready to prostrate themselves before and pay homage to the idol of the Demos. Papandreou facing in Parliament a no-confidence vote and the ousting of his government promptly announced a referendum that would decide the future of the country, hoping that this would allay the anger and opposition of the people against the austerity measures, imposed by the EU, and at the same time put an end to the disarray within his own government that itself stems from the revolt of the people. It’s clever politicking to avoid defeat and save for him the prime ministership. But he is doing this at the expense of the future well being of the country, as it would take years for Greece to recover from the shock of a default if the electorate voted for it, which is highly likely. This is no less than the revisiting of the ‘sinful’ genius of his pere who himself was the preeminent progenitor of the economic ills that Greece is presently plagued with. The fils merely continues , like father like son, the ‘sins’ of his sire in a more acute form and projects them into the future.

World Bank president, Robert Zoellick said that “if voters reject the plan, it’s going to be a mess.” Economists claim that the immediate effects of a default would probably be a 20 percent to 30 percent drop in domestic demand and a fall of 5 to 10 percent of domestic product. Evangelos Venizelos, the Finance Minister, and his deputy broke ranks and opposed the referendum, saying it would jeopardize Greek membership in the euro zone. Ilias Nicolakopoulos, professor of political science and close to the governing socialist party, stated that a “referendum would put the country in danger of blowing everything up.” In contrast, Henry Ergas writing in The Australian, on November 3, 2011, “Greek Vote a Banana Republic Moment,” praises Papandreou for having the “balls” to propose the referendum, and compares him to the gutsy warning of Paul Keating’s “Banana Republic.” He says, that “to call a referendum on the austerity program is hardly irrational. But he adds the caveat, “true, it is a gamble, and a risky one.” Nonetheless, “the best hope of what comes next must lie in securing a genuine popular mandate.”

Regrettably, however, Papandreou’s proposal of a referendum does not rise from his “balls” but from his impotence. Unable to lead and convince the country, as a weak leader, to accept the inevitable “scenario, Greece must face a lengthy period of austerity and structural reform,” Papandreou passes this leadership to the impassioned people to decide whether to accept or not this scenario. Professor Ergas’ quote of Sophocles, “truth is always the strongest argument,” though generally accurate, is misplaced in the context of a long corrupt electorate that the fiscal profligacy of past governments accustomed it to indulge in ‘free suntans’ in sunny Greece. In such circumstances, the only truth that this pampered electorate will accept is the continuation of these free suntans at public expense. And that is why they will vote NO to austerity measures and thus turn the referendum into an ogre for the future economy of Greece.

Fortunately the proposed referendum like the balloon it was fizzled out within twenty four hours. Under external and internal pressure Papandreou reneged his proposal and withdrew it. Tonight (November 4, 2011), he places his fate on the lap of the god, parliament, on a confidence vote. Even if he survives by the smallest margin his prime ministership is foreclosed.

By Con George-Kotzabasis

Ironically by the logic of the opening of his article Dr. Jones puts in a coma his own argument. When he says that the critics of Dr. Garnaut accuse him of using the “discredited science of IPCC” and answering this that “in fact the Garnaut review relied on the Australian climate science community to make its scientific case,” he does not realize that the deduction from his own answer is that the IPCC report is based on “discredited science”, since he replaces the latter with the presumably better scientific credentials of Aussie science. And the relentless vengeance of his own logic leads him to administer the coup de grace to his own argument when he further states, “the science community stands by its science, particularly research following (M.E.) on from the IPCC’s fourth assessment report.” Hence the Australian climate community science is itself based on the rotten cornerstone of the IPCC’s discredited science.

One would have expected from an objective scientist that with the dark cloud of contradictions and antinomies that are hovering over the debate of climate change to have had at least a modicum of doubt about his position, instead of being a preacher of the Gospel of truth.

I’m publishing this letter for the readers of Nemesis.

July 13 2004

Donald H. Rumsfeld,Secretary of Defence
1000 Defence Pentagon
Washington, DC 20301-1000

Dear Mr Secretary,

The enclosed document has been sent by e-mail both to the President and vice-President, as well as to the American Embassy in Australia, in late August 2003. For obvious reasons, it has not been sent to any of the media outlets for publication. Now however, it will be publicised in a book of mine titled, ‘Unveiling The War Against Terror’ and its subtitle, ‘Fight Right War Or Lose The Right To Exist’ in the middle of next August in Melbourne.

As you can see, the axiom of my proposal is that the Iraqi people should be the major equity holders in the profits of oil. In my humble opinion, this will engender three strategic outcomes favourable to your position. A. It will confer unassailable legitimacy to the Interim Government in Iraq. B. It will lead to the total isolation of the terrorist insurgents, and hence facilitate their complete defeat, which will have devastating effects on the global terrorists. And C., it will provide a historical paradigm to all the countries, and their peoples, in the Middle East and Africa which are endowed with resources of oil, to imitate the Iraqi Government.

Furthermore, it will implant the democratic ethos among their peoples, as the latter will witness that it was a democratic government in Iraq which has made its people the major owners of its primary wealth.

Hence, with one strategic fell swoop you will augment your chances of achieving your strategic goals in the region, as well as expediting the defeat of global terror.

For sure, there are some risks involved in this paradigm, especially for Saudi Arabia, as it may lead to the destabilization of the current regime there due to the political turmoil it could generate, and the exploitation of the latter by Muslim fundamentalists. But the U.S. government could take the necessary and preventive measures for all kinds of inimical eventualities foreseeable that could emanate from the implementation of this democratic paradigm.

Yours respectfully,

Con George-Kotzabasis

By Con George-Kotzabasis

The “lion” appointed by President Obama to the office of Secretary of Defence Leon Panetta, who purportedly is defending America and the West from deadly foes, in his latest visit to the Middle East is advising Israel, from his Olympian heights, ‘to take risks for peace.’ This advice, however, is redundant, superfluous, and otiose and Prime Minister Netanyahu has every reason to reject and oppugn such crass “displaced” advice. Israel had already taken risks in the past with no benefit accruing to it, least of all peace. It had withdrawn from Gaza and re-settled its citizens within the borders of Israel with the result that Gaza was taken over by the terrorist organization Hamas and Israel had to defend itself from a rain of rockets fired by the militants of Hamas; and it had likewise withdrawn from South Lebanon only for the latter to be taken over by the other blade of the terrorist scissors Hesbollah, that also started firing rockets against Israel forcing the latter to invade South Lebanon to protect its citizens from being killed. Israel had taken all these risks for peace. But what did it get in return, a deluge of rockets. What other risks Secretary Panetta has in mind for Israel that would bring the up till now eluding peace to the Middle East? For the Israelis to wait until Hamas and Hesbollah load the tips of their rockets with nuclear devices supplied in the near future by Iran? And what precautions and preventive measures the U.S. is taking to stop Iran from acquiring nuclear weapons?

The answer to these questions lies in the further advice that the Secretary of Defence is giving to Israel. He tells it not to take “lone” action against Iran in its threat to develop nuclear weapons. Preventing Iran from acquiring a nuclear arsenal, he says, is the responsibility of major nations taking concerted diplomatic action. But this is a “Looney” policy that the Secretary is recommending to the Israelis. It has been tried so many times in the past and it has failed resoundingly. The Islamist regime is not going to change course in its determination to possess nuclear weapons by a truckload of diplomatic carrots but only by an “armada” of bristling porcupines that will pierce its thick skin. Diplomacy can succeed with the Iranian regime only if it is accompanied by the explicit threat of arms.

Leon Panetta has the sinews of a lamb disguised under the skin of a lion. His peregrinating debut in the Holy Land and his attempt to bring, as the “envoy” of the also weak President Obama, Palestinians and Israelis to the negotiating table will prove to be an abject failure, like all the previous efforts of his predecessor Senator Mitchell, also appointed by Obama. As we have predicted, the Obama presidency is a circus of underperforming political tyros, both in the international and domestic arena and more and more Americans are realizing this and are becoming disenchanted with Obama’s performance. The “sprightly colt”, who won the race to the White House with overwhelming support only two and a half years ago, is presently underwhelmed and is conceding to be the underdog in the 2012 elections. (See Obama’s interview with George Stefanopoulos on the ABC.)