Monday, June 30, 2008

Invisible Hand: Washington Role in Iraq Oil Deal Revealed

Written by Chris Floyd

Monday, 30 June 2008
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I.
Here's a follow-up to yesterday's post on the sham sovereignty of the American client state in Iraq. The New York Times reports – in a story of the "Sun Rises in the East" variety – that Bush Administration has admitted that American government officials and selected corporate cronies "helped" the Iraqis draw up the sweetheart contracts that will bring the original exploiters of Iraqi oil back to their old stomping grounds.

This admission comes just weeks after Condi Rice publicly proclaimed that there was no U.S. government involvement in the oil deal. "It's a private sector matter," she told Fox News. Although the denial of Washington meddling was the usual outright lie – "advisers from the State, Commerce, Energy and Interior Departments are assigned to work with the Iraqi Oil Ministry," the Times reports – on the second point, the Secretary of State was not just flapping her gums: the backroom, no-bid contracts are indeed designed entirely for the benefit of the private sector -- or rather, for that oily part of the private sector from whose bowels have emerged so many top officials of the current administration, including George W. Bush, Dick Cheney and, er, Condi Rice.

Given the fact that the deal will only further confirm the near-universal belief among Iraqis that the Americans destroyed their country in order to steal their oil, it will certainly exacerbate violent resistance to the continued American presence in Iraq, as well as giving added fuel to the fire (and propaganda efforts) of extremists elsewhere.

In other words, the deal will result in the deaths of more Americans, more Iraqis, and an increase in terrorism around the world. So yes, it is indeed a "private sector matter," because only the private sector will profit from it. The rest of humanity will get it in the neck.


II.
But do let's be fair. The blood-money barons are not simply bigots or racists out to steal the wealth of subhuman foreigners; they very cheerfully devour their own people too, as we noted in the piece below from 2006. The runaway profit-gouging mentioned in the story has only grown greater since then – as has the pile of dead bodies which supports America's crony conquistadors in their wealth and privilege:


From "The War for Oil Comes Home":

The "War for Oil" is not just being fought in Iraq, you know. For as the Warmonger-in-Chief never tires of telling us, the "Homeland" itself is a major front in his never-ending war on – not terror, because his policies are fomenting and exacerbating terrorism around the world – but on anything and everything that might impinge in the slightest degree on the profits, power and privilege of the tiny clique of predatory elites that he represents.

[A recent NYT story] lays out the details of the scam – just one of many by which Big Oil uses its hired hands in Washington to cheat the American people out of billions of dollars in fees and royalties from the use of public land for corporate profit. As [the story] makes clear, the entire system is honeycombed with sweetheart clauses and deliberate ambiguities that allow the oil barons to take vast rake-offs – some of which they obligingly return in various forms of baksheesh to their political servants.

We hear a great deal – and rightly so – about the pernicious evil in the Bush Regime's attempt to wrest away the oil wealth of the Iraqi people and hand it to corporate cronies. But of course this was done to the American people long ago, and is still going on today. It's just the way the business works: gouging the rubes and dodging the law (or in most cases these days, simply writing the law yourself and ordering your flunkies in Congress and the White House to enact it)....

These companies and their ungodly profits are sustained at every turn by the infrastructure supported by American taxpayers. Who pays for the roads that distribute their wares? Who pays for the police, the power grid, the sewer lines, the education system, the legal system and every other element that supports the existence of modern commerce? Who pays for the armies that politicians have sent all over the world to secure Big Oil's pipelines and its ready access to the resources of other nations? Whose sons and daughters die in these military actions? Without this incomprehensively vast network of support, without the blood and treasure of the American people, the oil companies could never make a dime of profit; they'd be left with useless barrels of dinosaur juice to peddle as novelities at the county fair.

Yet not only do they reap these gargantuan private profits from public support – and from generations of politically assisted land swindles, sweetheart deals and special favors – they game the system in every possible way to escape or reduce their own contributions to the common insfrastructure. Jim Smith and Mary Jones can die for them in Iraq or Colombia; whole cities can groan under a creaking, decaying, underfunded infrastructure; but the oil barons will still slither and scheme to claw back every penny they can from the already mild obligations the system places upon them.

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Operation Horse's Head: U.S. Raid Sends Message on Iraq "Agreement"


Written by Chris Floyd
Sunday, 29 June 2008
As we know from The Godfather -- that seminal work of American political philosophy which serves as the Bible for policy-making in the Bush Administration -- a horse's head in the bed can be highly effective tool in difficult contract negotiations. Last Friday, Bush went his fictional mentors one better in the "negotiations" over an agreement setting out the public terms of a de facto permanent American occupation of the conquered land: he laid the corpse of a kinsman on the doorstep of Iraqi Prime Minister Nouri al-Maliki.

McClatchy Newspapers reports that U.S. Special Forces launched a deadly raid in al-Maliki's home province -- which has supposedly been returned to the full control of the Iraqi government. Without any warning to Iraqi forces, the American unit stormed the rural town of Janaja at dawn on Friday with 60 troops and in the course of the raid killed Ali Abdulhussein Razak al Maliki, one of the prime minister's many relatives in the area, where he was born and where his tribe is based.

No Iraqi authority was notified of this heavily armed raid -- complete with jets and helicopters -- on supposedly "sovereign," supposedly Iraqi-controlled territory. Certainly the prime minister himself knew nothing of the impending attack on his hometown. And once the operation was over, Iraqi military officers -- trained, funded, armed and embedded with U.S. forces -- said that "the Americans had acted on faulty intelligence."

The raid comes at what appears to be a delicate juncture in the on-going talks to establish a "status of forces agreement" for the American military presence in Iraq. Iraqi government officials have publicly balked at some of the most howlingly sinister, moustache-twirling proposals of the Bush Administration: 5o American bases! Complete legal immunity from Iraqi law! Right to launch deadly attacks anytime, anywhere in the country! Right to launch attacks on other nations from Iraq! Total control of Iraqi airspace! and so on. The Bush Administration has made a show of "recalibrating" some of its demands and, in the end, will probably modify a few of them: 30 permanent bases, say, instead of 50, or, as has already been suggested, putting Iraqi guard posts outside the gargantuan U.S. military plantations and pretending they are actually Iraqi bases with a few invited guests inside.

But the openly stated goal of the Bush Faction -- even before they seized power in 2000 -- has always been to reduce Iraq to a client state with a permanent American military presence and a kicked-down "open door" for exploitation by Western corporate interests. This overarching goal of the entire American enterprise in Iraq has been abundantly clear from the very beginning. That's why the occupation has seemed so haphazard and chaotic: because the Bushists literally don't care how the deal gets done -- as long as they get what they want in the end. The details -- nor the human cost -- of installing and maintaining a pliable "government" in Baghdad didn't matter: sectarian war, painting schools, rampant terrorism, passing out candy, mass roundups, civics lessons, the decimation of whole cities, building a soccer field, surges, ceremonies, a million people dead -- who cares? Try anything and everything, as long as you keep your eyes on the prize: a client state and forward bastion in the American empire of military bases -- with the second biggest oil reserves in the world.

In the al-Maliki government, the Bushists have their best shot at nailing down the ultimate prize down at last. So it's going to be hardball in the "negotiations" of the "status of forces agreement" (which even the corporate media recognizes as a transparent sham to avoid a Congressional vote on America's acquisition of a new colony. Although given the track record of the Democratic "opposition," it's hard to see why the Bushists would be too worried about pushing a formal treaty down the collective throat of Congress. Can't you hear Barack Obama now, announcing, in solemn tones, that although he does not agree with every aspect of the Iraq treaty, "it represents the best hope for bringing this tragic conflict to a close, ensuring the future of the Iraqi people and honoring the sacrifices of our fallen soldiers. Therefore I will support this measure.")

As Kurdish legislator Mahmoud Othman noted, the raid was a "big embarrassment" for al-Maliki, "because he was in that area two days before the incident, telling his people that we are the masters in our country and the decisions were ours to make." Clearly, the attack on al-Maliki's hometown and the killing of his kinsman were intended to send a double message. First, that any notion of Iraqi "sovereignty" is and always will be a joke, whatever pious verbiage gets spouted for the rubes back home. And second -- well, it goes something like this: "Hey, Nouri, see Cousin Ali here? You're next, pal, if you don't play ball!"

No doubt there will be a passing "political crisis" in Iraq over this hit job -- as there have been about so many other incidents before, from Haditha to Ishaqi to the Blackwater killing spree -- but it won't matter in the end. The cobbled-together conglomeration of collaborators and corruptocrats in the Baghdad "government" know they cannot survive without direct and massive American military support. The most they can hope for is to kick the negotiations down the road a bit, and see if they can get a slightly better deal from the next administration in Washington. (Obama, being such an "anti-war" candidate and all, would probably settle for, oh, 25 long-term "leases" on military bases for the tens of thousands of troops he intends on keeping in Iraq to carry out "counter-terrorism operations," train Iraqi forces and provide security for "American interests" throughout the land, including the bristling, sprawling "Fortress America" embassy in the heart of Baghdad.)

But Friday's operation was a strong indication that the Bushists might not be willing to let al-Maliki dally too much longer over an agreement. To avert once more to that seminal work: either al-Maliki's brains or his signature will be on that sheet of paper before the final credits roll.

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