Palestinians working inside Israel of more than $2
billion by deducting from their salaries contributions
for welfare benefits to which they were never entitled,
Israeli economists have revealedA new report, "State
Robbery", to be published later this month, says the
"theft" continued even after the Palestinian Authority
was established in 1994 and part of the money was
supposed to be transferred to a special fund on behalf
of the workers.According to information supplied by
Israeli officials, most of the deductions from the
workers. pay were invested in infrastructure projects in
the Palestinian territories -- a presumed reference to
the massive state subsidies accorded to the
settlements.Nearly 50,000 Palestinians from the West
Bank are working in Israel -- following the easing of
restrictions on entering Israel under the "economic
peace" promised by Benjamin Netanyahu, the Israeli prime
minister -- and continue to have such contributions
docked from their pay.Complicit in the deception, the
report adds, is the Histadrut, the Israeli labour
federation, which levies a monthly fee on Palestinian
workers, even though they are not entitled to membership
and are not represented in labour disputes."This is a
clear-cut case of theft from Palestinian workers on a
grand scale," said Shir Hever, a Jerusalem-based
economist and one of the authors of the report. "There
are no reasons for Israel to delay in returning this
money either to the workers or to their
beneficiaries."The deductions started being made in
1970, three years after the Israeli occupation of the
Palestinian territories began, when Palestinian workers
started to enter Israel in significant numbers, most of
them employed as manual labourers in the agriculture and
construction industries.Typically, the workers lose a
fifth of their salary in deductions that are supposed to
cover old age payments, unemployment allowance,
disability insurance, child benefits, trade union fees,
pension fund, holiday and sick pay, and health
insurance. In practice, however, the workers are
entitled only to disability payments in case of work
accidents and are insured against loss of work if their
employer goes bankrupt.According to the report, compiled
by two human rights groups, the Alternative Information
Centre and Kav La.Oved, only a fraction of the total
contributions -- less than eight per cent -- was used to
award benefits to Palestinian workers. The rest was
secretly transferred to the finance ministry.The Israeli
organisations assess that the workers were defrauded of
at least $2.25bn in today.s prices, in what they
describe as a minimum and "very conservative" estimate
of the misappropriation of the funds. Such a sum
represents about 10 per cent of the PA.s annual
budget.The authors also note that they excluded from
their calculations two substantial groups of Palestinian
workers -- those employed in the Jewish settlements and
those working in Israel.s black economy -- because
figures were too hard to obtain.Mr Hever said the
question of whether the bulk of the deductions -- those
for national insurance -- had been illegally taken from
the workers was settled by the Israeli High Court back
in 1991. The judges accepted a petition from the flower
growers. union that the government should return about
$1.5 million in contributions from Palestinian workers
in the industry."The legal precedent was set then and
could be used to reclaim the rest of these excessive
deductions," he said.At the height of Palestinian
participation in the Israeli labour force, in the early
1990s, as many as one in three Palestinian workers was
dependent on an Israeli employer.Israel continued
requiring contributions from Palestinian workers after
the creation of the Palestinian Authority in 1994,
arguing that it needed to make the deductions to ensure
Israeli workers remained competitive.However, the report
notes that such practices were supposed to have been
curbed by the Oslo process. Israel agreed to levy an
"equalisation tax" -- equivalent to the excessive
contributions paid by Palestinians -- a third of which
would be invested in a fund that would later be
available to the workers.In fact, however, the Israeli
State Comptroller, a government watchdog official,
reported in 2003 that only about a tenth of the money
levied on the workers had actually been placed in the
fund.The finance ministry has admitted that most of the
money taken from the workers was passed to Israeli
military authorities in the Palestinian territories to
pay for "infrastructure programmes". Hannah Zohar, the
director of Kav La.Oved who co-authored the report, said
she believed that the ministry was actually referring to
the construction of illegal settlements.The report is
also highly critical of the Histadrut, Israel.s trade
union federation, which it accuses of grabbing "a piece
of the pie" by forcing Palestinian workers to pay a
monthly "organising fee" to the union since 1970, even
though Palestinians are not entitled to
membership.Despite the Histadrut.s agreement with its
Palestinian counterpart in 2008 to repay the fees, only
20 per cent was returned, leaving $30m unaccounted
for.The Histadrut was also implicated in another
"rip-off", said Mr Hever. It agreed in 1990 to the
Israeli construction industry.s demand that Palestinian
workers pay an extra two per cent tax to promote the
training of recent Jewish immigrants, most of them from
the former Soviet Union.Mr Hever said that in effect the
Palestinian labourers were required to "subsidise the
training of workers meant to replace them". The funds
were never used for the stated purpose but were mainly
issued as grants to the families of Israeli workers.In
one especially cynical use of the funds, the report
notes, the money was spent on portable stoves for
soldiers involved in Israel.s three-week attack on Gaza
last year.In response, the finance ministry called the
report "incorrect and misleading", and the Histadrut
claimed it was "full of lies". However, neither provided
rebuttals of the report.s allegations or its
calculations.Mr Hever said the government body
responsible for making the deductions, the department of
payments, had initially refused to divulge any of its
figures, but had partly relented after some statistics
were made available through leaks from its staff.Assef
Saeed, a senior official in the Palestinian Authority.s
labour ministry, said the PA was keen to discuss the
issue of the deductions, but that talks were difficult
because of the lack of contacts between the two
sides.Jonathan Cook is a writer and journalist based in
Nazareth, Israel. His latest books are "Israel and the
Clash of Civilisations: Iraq, Iran and the Plan to
Remake the Middle East" (Pluto Press) and "Disappearing
Palestine: Israel's Experiments in Human Despair" (Zed
Books). His website is www.jkcook.net.
===================
Vía Campesina
Honduran Resistance against US sponsored Regime Change
Interview with Rafael Alegría by Prof Jeffery R. Webber 
Global Research, February 6, 
2010 Socialist Project -
2010-02-05 Hundreds of thousands of Hondurans took to 
the streets on Wednesday, January 27 to protest the 
inauguration of Porfirio "Pepe" Lobo Soza. Lobo was the 
victor in fraudulent elections held last November and 
his new regime is seen by the Honduran resistance as a 
continuation and consolidation of the coup regime that 
first came to power by overthrowing 
democratically-elected President, Manuel Zelaya, on June 
28, 2009. During the march I caught up with Rafael 
Alegría, a key leader in the National Resistance Front, 
and a leading Honduran figure in the international 
peasant movement, Vía Campesina. 
JRW: What are the principal demands of the resistance in 
this march today?
RA: The resistance has two principal pillars -- a social 
pillar for the revindication of the people.s rights, in 
which the resistance accompanies people in their daily 
struggle, for agrarian reform, for just salaries, and 
opposition to the privatization of social services. This 
is the pillar of social mobilization.The other pillar is 
the political arm -- to convert ourselves into a 
militant political force which will work toward taking 
political power in our country.
JRW: What are the objectives of the Constituent Assembly 
that the resistance is demanding?
RA:The power of the people is going to result in massive 
transformations in this country. We are demanding a 
Constituent Assembly that is going to transform this 
country, into a participatory democracy. It will be a 
new Honduras -- a country with social justice, with 
equality, with a new model of development in which 
everyone is included, and, as the Bolivians say, so that 
our entire country can live well.It will be very 
different than the current situation, in which there is 
a privileged oligarchy, which owns and controls 
everything, while on the other hand there is an immense 
mass of impoverished people. This can.t continue.There 
are a huge number of people in this march. And this is 
the message we are sending to the entire oligarchic 
power groups and to the rest of the people.
JRW: In the next few months, what will the strategy of 
the resistance be?
RA: We are in a process of national organization, of 
articulation, and establishing schools of political 
education. Our mobilizations are also going to continue. 
We have a concrete immediate agenda of mobilization. 
Beyond that, we.re preparing ourselves to participate in 
the elections in three years so that we can take 
definitive control. 
Jeffery R. Webber teaches political science at the 
University of Regina, Canada. He has three forthcoming 
books: Red October: Left-Indigenous Struggles in Modern 
Bolivia; The Politics of Evismo: Reform to Rebellion in 
Bolivian Politics; and (co-edited with Barry Carr) The 
Resurgence of Latin American Radicalism: From Cracks in 
the Empire to an Izquierda Permitida.
======================
The Corporate Takeover of U.S. Democracy by Prof Noam 
Chomsky -  February 4, 2010
Jan. 21, 2010, will go down as a dark day in the history 
of U.S. democracy, and its decline.On that day the U.S. 
Supreme Court ruled that the government may not ban 
corporations from political spending on elections -- a 
decision that profoundly affects government policy, both 
domestic and international.The decision heralds even 
further corporate takeover of the U.S. political 
system.To the editors of The New York Times, the ruling 
"strikes at the heart of democracy" by having "paved the 
way for corporations to use their vast treasuries to 
overwhelm elections and intimidate elected officials 
into doing their bidding."The court was split, 5-4, with 
the four reactionary judges (misleadingly called 
"conservative") joined by Justice Anthony M. Kennedy. 
Chief Justice John G. Roberts Jr. selected a case that 
could easily have been settled on narrow grounds and 
maneuvered the court into using it to push through a 
far-reaching decision that overturns a century of 
precedents restricting corporate contributions to 
federal campaigns.Now corporate managers can in effect 
buy elections directly, bypassing more complex indirect 
means. It is well-known that corporate contributions, 
sometimes packaged in complex ways, can tip the balance 
in elections, hence driving policy. The court has just 
handed much more power to the small sector of the 
population that dominates the economy.Political 
economist Thomas Ferguson.s "investment theory of 
politics" is a very successful predictor of government 
policy over a long period. The theory interprets 
elections as occasions on which segments of private 
sector power coalesce to invest to control the state.The 
Jan. 21 decision only reinforces the means to undermine 
functioning democracy.The background is enlightening. In 
his dissent, Justice John Paul Stevens acknowledged that 
"we have long since held that corporations are covered 
by the First Amendment" -- the constitutional guarantee 
of free speech, which would include support for 
political candidates.In the early 20th century, legal 
theorists and courts implemented the court.s 1886 
decision that corporations -- these "collectivist legal 
entities" -- have the same rights as persons of flesh 
and blood.This attack on classical liberalism was 
sharply condemned by the vanishing breed of 
conservatives. Christopher G. Tiedeman described the 
principle as "a menace to the liberty of the individual, 
and to the stability of the American states as popular 
governments."Morton Horwitz writes in his standard legal 
history that the concept of corporate personhood evolved 
alongside the shift of power from shareholders to 
managers, and finally to the doctrine that "the powers 
of the board of directors "are identical with the powers 
of the corporation." In later years, corporate rights 
were expanded far beyond those of persons, notably by 
the mislabeled "free trade agreements." Under these 
agreements, for example, if General Motors establishes a 
plant in Mexico, it can demand to be treated just like a 
Mexican business ("national treatment") -- quite unlike 
a Mexican of flesh and blood who might seek "national 
treatment" in New York, or even minimal human rights.A 
century ago, Woodrow Wilson, then an academic, described 
an America in which "comparatively small groups of men," 
corporate managers, "wield a power and control over the 
wealth and the business operations of the country," 
becoming "rivals of the government itself."In reality, 
these "small groups" increasingly have become 
government.s masters. The Roberts court gives them even 
greater scope.The Jan. 21 decision came three days after 
another victory for wealth and power: the election of 
Republican candidate Scott Brown to replace the late 
Sen. Edward M. Kennedy, the "liberal lion" of 
Massachusetts. Brown.s election was depicted as a 
"populist upsurge" against the liberal elitists who run 
the government.The voting data reveal a rather different 
story.High turnouts in the wealthy suburbs, and low ones 
in largely Democratic urban areas, helped elect Brown. 
"Fifty-five percent of Republican voters said they were 
`very interested. in the election," The Wall St. 
Journal/NBC poll reported, "compared with 38 percent of 
Democrats."So the results were indeed an uprising 
against President Obama.s policies: For the wealthy, he 
was not doing enough to enrich them further, while for 
the poorer sectors, he was doing too much to achieve 
that end.The popular anger is quite understandable, 
given that the banks are thriving, thanks to bailouts, 
while unemployment has risen to 10 percent.In 
manufacturing, one in six is out of work -- unemployment 
at the level of the Great Depression. With the 
increasing financialization of the economy and the 
hollowing out of productive industry, prospects are 
bleak for recovering the kinds of jobs that were 
lost.Brown presented himself as the 41st vote against 
healthcare -- that is, the vote that could undermine 
majority rule in the U.S. Senate.It is true that Obama.s 
healthcare program was a factor in the Massachusetts 
election. The headlines are correct when they report 
that the public is turning against the program.The poll 
figures explain why: The bill does not go far 
enough. The Wall St. Journal/NBC poll found that a 
majority of voters disapprove of the handling of 
healthcare both by the Republicans and by Obama.These 
figures align with recent nationwide polls. The public 
option was favored by 56 percent of those polled, and 
the Medicare buy-in at age 55 by 64 percent; both 
programs were abandoned.Eighty-five percent believe that 
the government should have the right to negotiate drug 
prices, as in other countries; Obama guaranteed Big 
Pharma that he would not pursue that option.Large 
majorities favor cost-cutting, which makes good sense: 
U.S. per capita costs for healthcare are about twice 
those of other industrial countries, and health outcomes 
are at the low end.But cost-cutting cannot be seriously 
undertaken when largesse is showered on the drug 
companies, and healthcare is in the hands of virtually 
unregulated private insurers -- a costly system peculiar 
to the U.S.The Jan. 21 decision raises significant new 
barriers to overcoming the serious crisis of healthcare, 
or to addressing such critical issues as the looming 
environmental and energy crises. The gap between public 
opinion and public policy looms larger. And the damage 
to American democracy can hardly be overestimated.   
Noam Chomsky is Institute Professor & Professor of 
Linguistics (Emeritus) at the Massachusetts Institute of 
Technology, and the author of dozens of books on U.S. 
foreign policy. 
============
Former Congresswoman and 2008 Green Party Presidential 
Nominee will participate in an International Peace 
Conference scheduled to take place in Munich, Germany on 
February 6 - 7, 2010 while the North Atlantic Treaty 
Organization (NATO) meets in the same city to plan war.  
McKinney, a long-time proponent of abolishing NATO, is 
scheduled to speak on February 6 at a rally to protest 
the NATO "security" conference.  After the rally, 
McKinney will participate in the International Peace 
Conference whose schedule and call to demonstrate 
against NATO war policies are included below.Included in 
McKinney's program is a meeting with the Munich American 
Peace Committee (MAPC - www.mapc-web.de) which will 
present to McKinney its third annual award, "Peace 
through Conscience," during the ceremonies of the Munich 
Peace Conference on the evening of February 6, 2010.  
The MAPC Peace Prize is normally awarded by the previous 
year's winner.  In McKinney's case the honors will be 
done by André Shepherd, a U.S. Army deserter from the 
Afghanistan and Iraq wars and asylum seeker in Germany.  
Said McKinney of her selection for the award, "I am 
humbled to be so recognized.  Clearly, the MAPC gave 
more thought to the significance of those whose struggle 
for peace is based on principle and an unshakeable 
commitment, despite the personal sacrificies required, 
than did the Nobel Peace Committee that rewarded our 
President for war."  McKinney continued, "In this way of 
thinking, peace is now war, lies are now truth, and 
ignorance is strength."McKinney calls on Americans 
across Germany to converge on Munich and protest U.S. 
and NATO war policies.  McKinney will meet with American 
ex-patriots in multiple meetings while in Munich.
==================
If you tell a lie big enough and keep repeating it, said 
Joseph Goebbels, people will eventually come to believe 
it. The bailout of Wall Street initiated in September 
2008 was premised on the dire prediction that if major 
counterparties in the massive edifice of derivative 
contracts were allowed to fall, the whole interlocking 
house of cards would collapse and take the economy with 
it. A hijacked Congress dutifully protected the 
derivatives game with taxpayer money while the real 
economy proceeded to collapse, the financial sector 
choosing to put their money into this protected form of 
speculative betting rather than into the more mundane 
and risky business of making loans to struggling 
businesses and homeowners. In the end, $170 billion of 
federal funds went to AIG and the banks feeding at its 
trough. Rumor has it that Timothy Geithner is on his way 
out as Treasury Secretary, due to his involvement in the 
AIG scandal that is now unraveling in hearings before 
the House Oversight and Reform Committee. Bob 
Chapman writes in The International Forecaster: Each day 
brings more revelations of efforts of the NY Fed and 
Goldman Sachs to hide the details of the criminal 
conspiracy of the AIG bailout. . . . This is a real 
crisis on the scale of Watergate. Corruption at its 
finest. But unlike the perpetrators of the Watergate 
scandal, who wound up looking at jail time, Geithner 
evidently has a golden parachute waiting at Goldman 
Sachs, not coincidentally the largest recipient of the 
AIG bailout. At least that is the rumor sparked by an 
article by Caroline Baum on Bloomberg News, titled 
"Goldman Parachute Awaits Geithner to Ease Fall." Hank 
Paulson, Geithner.s predecessor, was CEO of Goldman 
Sachs before coming to the Treasury. Geithner, who has 
come up through the ranks of government, could be 
walking through the revolving door in the other 
direction.  Geithner has been under the House microscope 
for the decision of the New York Fed, made while he 
headed it, to buy out about $30 billion in credit 
default swaps (over-the-counter derivative insurance 
contracts) that AIG sold on toxic debt securities. The 
chief recipients of this payout were Goldman Sachs, 
Merrill Lynch, Societe Generale and Deutsche Bank. 
Goldman got $13 billion, roughly equivalent to its bonus 
pool for the first 9 months of 2009. Critics are calling 
the New York Fed.s decision a back-door bailout for the 
banks, which received 100 cents on the dollar for 
contracts that would have been worth far less had AIG 
been put through bankruptcy proceedings in the ordinary 
way. In a Bloomberg article provocatively titled "Secret 
Banking Cabal Emerges from AIG Shadows," David 
Reilly writes: [T]he New York Fed is a 
quasi-governmental institution that isn.t subject to 
citizen intrusions such as freedom of information 
requests, unlike the Federal Reserve. This 
impenetrability comes in handy since the bank is the 
preferred vehicle for many of the Fed.s bailout 
programs. It.s as though the New York Fed was a 
black-ops outfit for the nation.s central bank. The 
beneficiaries of the New York Fed.s largesse got paid in 
full although they had agreed to take much less. In a 
November 2009 article titled "It.s Time to Fire Tim 
Geithner," Dylan Ratigan wrote: [L]ast November . . . 
New York Federal Reserve Governor Tim Geithner decided 
to deliver 100 cents on the dollar, in secret no less, 
to pay off the counter parties to the world's largest 
(and still un-investigated) insurance fraud -- AIG. This 
full payoff with taxpayer dollars was carried out by 
Geithner after AIG's bank customers, such as Goldman 
Sachs, Deutsche Bank and Societe Generale, had already 
previously agreed to taking as little as 40 cents on the 
dollar. Even after the GM autoworkers, bondholders and 
vendors all received a government-enforced haircut on 
their contracts, he still had the audacity to claim the 
"sanctity of contracts" in the dealings with these 
companies like AIG. Geithner testified that the Fed.s 
hands were tied and that the bank could not "selectively 
default on contractual obligations without courting 
collapse." But if it was all on the up and up, why all 
the secrecy? The contention that the Fed had no choice 
is also belied by a recent holding in the Lehman 
Brothers bankruptcy, in which New York Bankruptcy Judge 
James Peck set aside the same type of investment 
contracts that Secretaries Paulson and Geithner 
repeatedly swore under oath had to be paid in full in 
the case of AIG. The judge declared that clauses in 
those contracts subordinating other claims to the 
holders. claims were null and void in bankruptcy. "And 
notice," comments bank analyst Chris Whalen, "that the 
world has not ended when the holders of [derivative] 
contracts are treated like everyone else." He calls the 
AIG bailout "a hideous political contrivance that ranks 
with the great acts of political corruption and thievery 
in the history of the United States."
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