June
20,
2015
-
No.
25
Harper Government's "Accelerated
Depreciation"
To Plan or Not to Plan
- K.C. Adams -
To plan (be) or not to
plan (be), that is the question:
Whether
'tis
Nobler
in
the
mind
to
suffer
The
Slings and Arrows of outrageous Fortune,
Or to
take Arms against a Sea of troubles,
And by
opposing end them
(With apologies to
Shakespeare)
Capitalism has reached a
tipping point. The system has
become so heavily
monopolized in the basic sectors and dominated by concentrated social
wealth
that the economy demands planning. Those holding great social wealth
agree,
for otherwise their private wealth cannot grow at what they consider an
acceptable rate. They want state-organized planning to defend their
private
interests and enlarge their private fortunes; they oppose planning to
defend the
public interest, strengthen the overall socialized economy and build
the
nation.
The law of a falling rate
of profit forces those that
own
great social wealth
to plan in concert with the state to prop up their private profits
using the
public treasury and the political power of laws, rules and regulations
that suit
their private interests, but which immediately come into contradiction
with the
public interest, other owners of social wealth and the working class.
The centres of great social wealth demand
state-organized planning for
private purposes. This private planning within parts of the economy
comes into
conflict with its broad socialized character and the need to harmonize
interests,
not pit private interests against each other and the public interest.
State-Organized Planning to Serve Certain Private
Interests
Harper's PMO put out a press release that distorts
economic
science to the point of farce. The Harper government proposes that the
value of
machinery be
considered transferred to production at a rate of 50 per cent per year
on a
declining basis. This "accelerated depreciation" has a contradictory
effect of
decreasing the amount of added-value for accounting purposes yet
increasing
the claim on added-value by owners of equity. The loser in this
accounting scheme is the government's claim on added-value. This tax
proposal
is an
example of state-organized planning to serve certain narrow private
interests.
With this state-organized planning for private purposes, the monopolies
that
benefit are in contradiction with each other, with owners of less
social wealth,
the working class and the economy itself.
In this case, the monopolies demand state intervention
in planning to blunt
the law of a falling rate of profit under capitalism. By artificially
minimizing
added-value through boosting transferred-value from machinery, the
government's proposal decreases taxable corporate income thus inflating
the actual
profit
companies can claim. This manoeuvre overcomes at least for accounting
purposes the law of a falling rate of profit for the companies directly
involved
while at the same time further decreasing overall added-value and its
rate. By
doing so, the problem of a falling rate of profit is buried under
economic
ignorance and self-serving accounting practices and not faced up to
squarely.
State-Organized Measures to Distort the Economy and
Prevent
Genuine Renewal
Only fictitious kinds of modern machinery
depreciate at 50 per cent a year. Can anyone imagine modern machinery
transferring its value at a yearly rate of 50 per cent unless of course
it is
complete junk to begin with and already falling apart as it leaves the
factory,
lasting only a few years at best? Even the current 30 per cent rate
cannot be
justified.
The irony that an annual 50 per cent depreciation of
machinery would
actually lower the rate of profit in the first few years appears to
escape the
PMO. The practice lowers the added-value in the accounts but at the
expense
of only the government's claim while boosting the claims of owners of
the
monopolies due to the current tax regime. The government's claim on
added-value, the corporate tax, is based on a company's "net profit,"
which
clever tax accountants can manipulate down to nothing while at the same
time
distributing profits to owners of equity.[1]
These state-organized measures to distort the economy
are meant to serve
certain private interests. They militate against the socialized economy
as a
whole by taking value from here and putting it there in contradiction
with the
laws of economic science. They deprive certain sectors of value while
filling
the coffers of others causing problems for the economy and creating
conditions
for a general crisis.
The current tax regime and
this particular Harper government scheme show the necessity
for a complete overhaul with governments and their social and material
infrastructure claiming revenue directly from enterprises and not from
secondary sources using employee income tax, payroll tax, sales tax,
corporate
tax on net profit, and user fees. The objective conditions cry out for
planning
in the public interest in harmony with the socialized nature of the
modern
economy to meet its needs and that of the people for social programs,
which
guarantee their rights.
The concept of manipulating transferred-value as a means
for the
government to claim less added-value from the socialized economy is a
farce
and causes problems in practice and theory. If the government does not
want
to claim any of the added-value from production, it should just say so
and
explain where it plans to find money to fund itself, its institutions,
programs,
the social and material infrastructure and the general interests of
society. The
people should denounce the government for making a mockery of economic
science to serve narrow private interests.
The Harper government's gambit is an attempt to
circumvent
a
socialized economy that
cannot continue in the old way with private relations of production and
state-organized planning serving privileged private interests. The old
relations
based on private ownership of the social forces of production need to
be
revolutionized and brought into harmony with the reality of the new.
The distortion in accounting is one more effort to avoid
the obvious
conclusion that the socialized economy demands radical reform and not
narrow
state-organized planning to serve certain private interests. The
falling rate of
profit is a problem that emerges from the contradictions of capitalism
and
cannot be avoided as long as the system persists. It must be
acknowledged as
a scientific fact and dealt with accordingly, starting with restricting
monopoly
right and its destructive attempts to circumvent the law.
The economic planning that is needed emerges from the
economy's social
character and the fact that private ownership of competing parts of the
basic
sectors cannot control and stabilize the overall economy, and has no
use even
for its own production unless it serves its narrow private interest for
money
profit. The organized people have to gain the political power and legal
will
necessary and capable of confronting and restricting monopoly right and
depriving it of the political power that serves its narrow private
interests.
Planning to serve the public interest and socialized
economy, especially
with regard to the wholesale sector, the determination of prices of
production
in the basic sectors according to a modern scientific formula, which
includes
an average rate of profit, and control over the supply and distribution
of basic
production are first steps to avoid recurring economic crises and open
a path
forward.
Note
1. The classic example of the manipulation of corporate
taxes and the “net profit” fraud is the global monopoly GE and its over
1,000 tax accountants. For a summary of its practices read the articles
here and here.

Global Private Interests Versus the
Canadian Public
Interest and
Nation-Building
Posted below are excerpts from a May 14 statement from
the PMO, "PM
highlights support to help Canadian manufacturers equip for success,"
with
comments from TML in double parentheses.
"Economic Action Plan 2015
proposes to provide an
accelerated capital
cost allowance (CCA) at a rate of 50 per cent on a declining-balance
basis for
machinery and equipment used in manufacturing and processing. This is a
substantially faster write-off than the standard 30 per cent rate,
allowing
businesses to defer taxes and recover the cost of their capital
investments more
rapidly. The measure will apply to capital assets acquired after 2015
and
before 2026."
((Investments in machinery are not recovered through
deferred taxes. The
value of the machinery is consumed in the production process and then
transferred and preserved within new goods and services as
transferred-value.
Businesses recover the transferred-value when the new good or service
is
realized (sold). The quality of the machinery and intensity of its use
determine
the recovery period, not any arbitrary percentage the government may
propose
in deferring taxes.
The full value of the investment is recovered when the
entire value of the
machine has been transferred into new production and realized through
sale.
The machine at that point or earlier would have to be rebuilt to be of
any
use or
retired from service. To impose a 30 or 50 per cent annual recovery to
reduce
the government's claim on added-value distorts the economy and reveals
the manner in which governments presently make their claim on
added-value
based on a company's "net profit." To relate the recovery or
depreciation
period for transferred-value to a government dictated "accelerated
capital cost
allowance" is a theoretical and practical distortion of economic
science, which
becomes yet another factor disrupting the economy causing crises and
solves
no problem.))
"This incentive will provide concrete, long-term
support, enabling
Canadian manufacturers to plan the investments that are needed to
compete in
a global economy .... The ten-year term will provide businesses with
more
planning certainty for larger, long-term projects."
((State-organized help for private planning comes into
conflict with
competing private interests and the public interest. The interrelated
socialized
economy requires broad social planning taking into account all factors
and
sectors not just the private interests of particular businesses or
sector.))
"New investments will help position them to meet both
present and future
economic challenges, while creating jobs and growth."
((How does the Harper government know this? From this
supposition, it
predicts that whatever "new investments" businesses make will "meet
both
present and future economic challenges." Maybe the investments will be
completely disastrous or simply made to cash in on some pragmatic
scheme
for a quick score.
Also, the claim that investments in machinery and
productivity "create
jobs" is patently false. Increased use of machinery leading to
productivity
eliminates jobs. That is the point of productivity, to reduce the
living
work-time while producing the same quantity of goods and services.
Certain
businesses using more machinery such as robots generate greater
productivity.
This will not only eliminate jobs within their own companies but may
wipe
out competitors within Canada destroying even more jobs. The Harper
PMO's statement does not foresee this real possibility but brags of
"creating
jobs and
growth." This statement, unaccompanied by any talk of dealing with
possible
adverse consequences, shows the government has no plan for
increased
unemployment and enforced idleness due to greater productivity.
The broader public interest
does not gain from this
concession to private
business interests. The people are left to deal with any negative
consequences
in an enforced atmosphere of "fend for yourself" creating chaos such as
poverty and anti-social behaviour and outlooks. The government foregoes
claims on added-value for nothing concrete in return just pie in the
sky hopes
for "growth," which if it materializes using a gift from the public
treasury is
registered as a gain for private companies not public enterprise,
social
programs or public services.
If growth does materialize from certain companies
becoming even larger
and stronger, the public interest does not benefit. In fact, the public
interest
directly suffers. As global companies become larger, they become more
dominant and belligerent in pushing monopoly right in opposition to
public
right.
Also, the investment in machinery by companies
registered in Canada may
in fact be used in their holdings abroad. This is not such a
far-fetched idea.
Earlier this year the trade union Unifor exposed a $526 million Export
Development Canada loan to Volkswagen to help finance the global
monopoly's expansion not in Canada but abroad. The government
rationalized
this misuse of public finds under the hoax that maybe Canadian
companies
will increase their exports to Volkswagen's non-Canadian enterprises.
Another issue not broached in the PMO statement is the
origin of the
machinery the companies may purchase. Prime Minister Harper made the
announcement in
Windsor, Ontario so presumably he has the auto sector in mind. These
days,
primary machines in vehicle production are robots, which are mostly not
manufactured in Canada. Also, the Harper government often speaks of the
resource
sector, and
again, the heavy machinery employed in that sector is not made in
Canada but
mostly in the U.S., Japan and Germany.
Without a plan to develop robot and heavy machinery
production in
Canada, the continual purchase of these means of production from
abroad,
aided by the state treasury, drains social wealth from the country
and
weakens the economy. The Harper government does not consider the
negative implications
of
this on nation-building nor does it propose anything to change the
situation. Its neo-liberal obsession to use the power of the state and
its public
resources
for the empire-building of private monopolies means it opposes any
restriction of monopoly right in defence of public right and the
sovereign right
of the people to control and build their nation and economy to serve
the public
interest, the people's well-being and general interests of society.))
"This initiative is one of
many measures that the
Government has taken
to create an environment that enables Canadian manufacturers to
prosper.
Other examples include the Red Tape Reduction Action Plan, the Venture
Capital Action Plan, concluding negotiations for the Canada-European
Union
Trade Agreement, and concluding negotiations and implementing
legislation
for the entry into force of the Canada-Korea Free Trade Agreement."
((This is disingenuous to
say the least. Not one
economist or academic
would dare to suggest that the Canadian manufacturing sector has grown
and
prospered in recent times. The list of the Harper government's
initiatives to serve
monopoly
right highlights the growing problem facing Canadians of powerful
global
monopolies that put their private interests as a priority in opposition
to the
public interest and sovereign nation-building, and use their monopoly
right and
influence over the state to have their way.))
"The deferral of tax associated with this new measure is
expected to
reduce federal taxes for manufacturers by $1.1 billion over the
2016-2017 to
2019-2020 period. Since 2006 the Government has worked to create a
low-tax
environment for business investment ...."
((These types of statements from the Harperites
reduce the
socialized economy and society to a banality. The social wealth
produced
within the socialized economy is necessary to reproduce the economy,
meet
the needs of the working class from birth to passing away and serve the
general interests of society. How is such a modern interrelated complex
enterprise to be organized and controlled so that the public interest
is served?
The answer is not found in self-serving triviality.
Statements to the effect of "creating a low-tax
environment for business
investment" solve no problem and are meant to justify a regime that
deprives
Canadians of their right to govern themselves and control their economy
in the
public interest. Such statements attempt to paper over a regime that
has handed
over the basic sectors of the economy to global private interests in
opposition
to the Canadian public interest and nation-building. The neo-liberal
line of
constantly serving monopoly right is a slippery slope to disaster.
Canadians
demand their right to govern themselves and control their economy to
serve
the public interest, nation-building and the general interests of
society.))

Farcical Accounting
Regarding the
PMO's
proposal to depreciate
newly-bought
machinery at 50 per cent a year
Besides everything else,
does a particular company need
the new
machinery or not? Does such a company need the Harper government's
yearly 50 per cent
transferred-value
promise to push it into buying new machinery or otherwise
would
it just carry on with what it owns? If the machinery is needed, it
could borrow
the needed money and the value of the investment would return to the
company in time as production is realized.
What does the government hope to achieve through
this measure?
Are companies
going to buy all sorts of new machinery, and with it and the resulting
increased productivity flood the economy with production that may or
may not
be needed, and can or cannot be realized? Does the government
somehow know that
companies are just itching to buy new machinery but will only do so if
they
can write it off in their tax accounting as transferred-value at 50 per
cent each
year? This arbitrary dictate is a public gift to companies and throws
mud at
economic science, which cannot accept an inflated transferred-value
when
determining a price of production.
Also, what has the
government planned to do with the surplus
workers who are no
longer needed when the modern machinery increases productivity? Under
the
capitalist regime, increased productivity does not just generate more
social
wealth for a privileged few but also more idleness and poverty on the
part of
many.
The Harperites' plan boosts equity profit by shifting
the claim
of the government
on added-value to owners of equity. This sleight of hand declares the
government's claim on added-value as no longer valid, renaming it
transferred-value from machinery depreciated at 50 per cent annually
and used
as a company tax benefit.
The increased owners' claim of equity profit through a
tax benefit arises
from a convoluted sequence of events from an artificially inflated
transferred-value. The increased transferred-value from depreciating
machinery
at 50 per cent annually decreases the available added-value at least
according
to the Harper government's accounting. Paradoxically, the decreased
added-value ends
up
benefitting the company as profit because of the existing way corporate
taxes
are calculated on so-called net profit. The company's taxable net
profit
becomes less, resulting in a lower government claim on the available
added-value, which becomes a tax benefit for the company.
A portion of the available
added-value goes to pay for
the new machinery
before its value is transferred into new production and realized as
transferred-value. This scenario exposes the necessity for a completely
new
taxation system whereby governments and their institutions claim
added-value
directly from the amount workers produce in the socialized economy and
also
exchange socially produced value, for example from public education and
health care, directly with companies that consume the value. Also,
the Harper government's
nonsense underscores the necessity to assert the public interest over
the
wholesale sector and the determination of prices of production.
The $1.1 billion in additional money going to companies
to pay for
machinery is
seized from the government. In the most cavalier manner, the PMO press
release brags about the $1.1 billion to be handed over to the private
interests
profiting from the scheme, without any mention whether the government
needs
this revenue or not. If the government does need the revenue, it makes
no
mention of where it will find the forgone $1.1 billion.
This state-organized
distortion of the economy should be
characterized as
official corruption serving certain private interests. It opens the
door to
possible buying and selling of equipment here and there even within
monopolies or fictitiously to themselves as a means to increase
transferred-value and avoid paying taxes. The same piece of equipment
could
be moved around on paper to where it reduces net profit in the most
effective
way. Global monopolies are organized that way. To avoid showing any
profits
for years on end, they move the accounting of transferred-value around
from
one division to another, even from one country to another, or from the
construction of a new mill or mine to a facility that is fully
productive and can
benefit from a tax deduction. Monopoly manipulation can declare a part
of the
same company completely independent for self-serving purposes. U.S.
Steel
has done exactly that saying its wholly owned Canadian subsidiary is
bankrupt
and owes the parent U.S. company billions of dollars as a secured
creditor
ahead of all others including pensioners.
With this tax measure, the Harper government keeps
piling on the
ignorance and
contradictions. The people are forced to keep on keeping on as they
say, or as
Shakespeare writes, "to take Arms against a Sea of troubles, And by
opposing
end them," and by doing so bring the outmoded relations of production
of
private ownership of competing parts of the economy into harmony with
the
already socialized economy where the actual producers will control the
economy, and scientific planning can stabilize and stimulate the
economy to
best serve the public interest and general interests of society.

Canada's Ukrainian Adventure
Harper Government's Continued Attempts to Impose Nazi
Values on
Canadians
- Dougal MacDonald -

Parliament Hill, October 4, 2014.
Ukraine's worst-kept secret is now being more
and more
exposed. For many months, the ruling circles of Ukraine, the Harper
dictatorship, and the U.S. and Canadian monopoly media, among others,
have
tried vainly to conceal the facts of the continuing neo-Nazi
resurgence in
Ukraine. Currently, the openly neo-Nazi political party Svoboda holds
seven
seats in the Ukraine parliament. Other similar parties such as Right
Sector,
which apologists euphemistically label "ultra-nationalist" and "far
right," also
hold parliamentary seats. Meanwhile, Ukraine military attacks on what
are labelled "pro-Russian rebels" are being spearheaded by the openly
neo-Nazi
Azov Battalion, as well as by other private and government-financed
"volunteer battalions" -- such as the Aidar Battalion -- which brandish
Nazi symbols.
The Azov Battalion, funded by Ukrainian oligarch Ihor
Kolomoyskyi, is
a military unit commanded by Ukrainian legislator Andriy Biletsky, a
known
white supremacist. The Conservative British newspaper, the London
Telegraph, commented on August 11, 2014: "Recently formed
battalions
such
as Donbas, Dnipro and Azov, with several thousand men under their
command, are officially under the control of the interior ministry but
their
financing is murky, their training inadequate and their ideology often
alarming.
The Azov men use the neo-Nazi Wolfsangel (Wolf's Hook) symbol on their
banner and members of the battalion are openly white supremacists, or
anti-Semites." Based on interviews with militia members, the Telegraph
reported that some of the fighters doubted the reality of the
Holocaust,
expressed admiration for Adolf Hitler and acknowledged that they are
indeed
Nazis.

Neo-Nazi emblem of
the Azov Battalion.
|
As far as the Azov Battalion goes, the cat is now
completely out of the
bag. On June 10, the Republican-dominated U.S. House of
Representatives was forced to pass a bipartisan amendment to the Defense
Appropriations Act -- from Representatives John Conyers Jr.
(Democrat-Michigan) and Ted Yoho (Republican-Florida) -- that would
block
U.S. training of the Azov battalion. "I am grateful that the House of
Representatives unanimously passed my amendments last night to ensure
that
our military does not train members of the repulsive neo-Nazi Azov
Battalion,
along with my measures to keep the dangerous and easily trafficked
MANPADs (note: man-portable air defense systems) out of these unstable
regions," said Conyers on June 11.[1]
The U.S. move has once again put the Harper government's
Minister of
Defence Jason
Kenney, squarely on the spot. As is well-known, the Harper government
and its minions
have
been
engaged in a passionate love affair with the Nazi-infiltrated Ukrainian
regime,
especially since the May 25, 2014, coup by the forces backing current
President Petro Poroshenko. Poroshenko himself has made his own
pro-Nazi
stand very clear. In December 2014, he granted Ukrainian citizenship to
Belarusian neo-Nazi and Azov Battalion commander of reconnaissance
Serhiy
Korotkykh. On April 6, Interpol-wanted leader of Ukraine's neo-Nazi
group
Right Sector, Dmitry Yarosh, was appointed as an adviser to the
country's
Chief of General Staff. On April 9, the Ukraine parliament banned
communism and officially recognized Ukrainian nationalists who
collaborated
with the Nazis as "freedom fighters." On May 15, Poroshenko signed
a
bill to remove communist monuments and to rename all
"communist-related"
streets, public places and settlements. The legislation also provided
public
recognition to the Ukrainian Insurgent Army, led by Stepan Bandera,
which
collaborated with the Nazis during the Second World War.
This April, Minister of Defence Kenney announced that
the Harper
government was
committing up to 200 Canadian soldiers to train Ukraine's military to
fight
"Russian rebels." The move was questioned at the time. In light of the
April
announcement, on June 18 Kenney was asked to comment on the U.S. vote
to block training of the Azov Battalion. Kenney refused and instead his
press
secretary emailed this response: "Ukrainian forces are responsible for
the
screening process to ensure the Canadian Armed Forces will only be
training
legitimate military members. The first installment of trainees will be
members
of the Ukrainian Armed Forces (Land). [... We have] been assured that
this group
will
not include members of the Azov Battalion and this battalion will not
be
integrated into the Ukrainian Armed Forces."
Former Canadian diplomat
James Bissett had already
suggested in April
that Minister Kenney's claims of "selective training" were not
supported by the
evidence. Following Kenney's announcement, Bissett said that the
Canadians
could end up training members of the country's fascist groups as those
troops
are now being enrolled in Ukraine's regular forces. "These militias are
being
merged with Ukraine's military so we won't be able to determine who we
are
training," said Bissett, Canada's former ambassador to Yugoslavia,
Bulgaria
and Albania. "These are unsavoury groups that Canadian soldiers should
not
be associated with."
It should be noted that Minister of Defence Kenney
revealed his own pro-Nazi leanings as many as six years ago. In 2009,
Kenney expressed his admiration for convicted pro-Nazi war criminal
Cardinal Aloysious Stepanic during an invited speech to the Croatian
community: "I have on my desk in my office in Ottawa a prayer card with
a picture of Cardinal Stepinac, who was himself a kind of martyr for
Croatia and for the faith, and he, for me, is one of the great heroes
of the 20th century. And these men, all of them, men and women are
heroes. I was very touched by this. So, thank you very much."[2]
During World War II, Kenney's hero Stepinac collaborated
with fellow war
criminal Ante Pavelic, the head of a pro-Nazi puppet state called the
"Independent State of Croatia," which was founded on April 10, 1941,
after
the Axis powers invaded Yugoslavia, and run by a murderous fascist gang
called the Ustashe. By order of the Vatican, Stepinac held the position
of
supreme apostolic vicar for the Ustashe army. "Hitler is an envoy of
God," declared Stepinac, then an Archbishop, in a letter to the Croatian Sentinel on January
1, 1942.
Stepinac was promoted to Cardinal by Pope Pius
XII
in 1953 and beatified by Pope John Paul II in 1998.[3]
The Ustashe regime set up the
notorious
Jasenovac concentration camp, one of the largest in Europe, where an
estimated 13,000 Jews, 48,000 Serbs, and 10,000-20,000 Roma were
systematically
exterminated.
The 1947 investigation by the Yugoslavian government,
"The Case of
Archbishop Stepinac," clearly exposed Stepinac's criminal role in
wartime
Yugoslavia: "Investigation by the Yugoslav War Crimes Commission
established that Archbishop Stepinac had played a leading part in the
conspiracy that led to the conquest and breakdown of the Kingdom of
Yugoslavia. It was furthermore established that Archbishop Stepinac
played
a role in governing the Nazi puppet Croatian state, that many members
of his
clergy participated actively in atrocities and mass murders, and,
finally, that
they collaborated with the enemy down to the last day of the Nazi rule,
and
continued after the liberation to conspire against the newly created
Federal
Peoples Republic of Yugoslavia."[4]
The Harper dictatorship's continuing anti-communist
campaign and its
open support for neo-Nazism and black reaction pose serious dangers for
the
Canadian people. Many examples can be given. The just-passed Bill C-51
legalizes black ops and state terror against the working people.
The Harper government used the occasion of the June
5-11 visit to Europe, which included stops in Ukraine, Germany, Poland
and
Italy to dishonour the Canadian people by advocating war
and
aggression in their name. The Harper Conservatives supported fascism by
boycotting the May 9 celebration in Moscow of the 70th anniversary of
the victory in Europe over the Hitlerites. For several
years now,
the Prime Minister and his Minister of Defence have spearheaded the
funding of an anti-communist
memorial in Ottawa on a prime piece of real-estate so as to impose Nazi
values on Canadians. These many betrayals by the Harper Conservatives
of all
those who fought and died fighting fascism are of great concern to all
Canadians. It is a clear indication of the sinister extremism that the
Harper
Conservatives are trying to impose on Canadian society.
Notes
1. For further details, see the article, "U.S. House
Admits Nazi Role in
Ukraine" in the June 13 Supplement to TML Weekly Information
Project. http://www.cpcml.ca/Tmlw2015/W45024S.HTM#1
2. See the You Tube video of Kenney's speech at
https://www.youtube.com/watch?v=BtHVhfjXcS4&feature=youtu.be
3. For more details on Pope Pius' role during the Second
World War, see Hitler's Pope: The Secret History of Pius X11
(1999), by John
Cornwell.
4. Full document available at
http://emperors-clothes.com/croatia/stepinac1.htm

National Aboriginal Day, June 21
Profound Political and Constitutional Renewal
Are
Needed to Redress
Crimes Against
Indigenous Peoples
- Philip Fernandez -

Walk for reconciliation in Ottawa, part of the
final assembly of the Truth and Reconciliation Commission, May 31,
2015.
June 21 is National Aboriginal Day, which was proclaimed
in 1996 by
then-Governor General Roméo Leblanc. The Governor
General's
proclamation noted that the summer solstice had particular "symbolic"
significance for Aboriginal peoples and had thus been selected as the
occasion
for National Aboriginal Day. He stated: "Aboriginal peoples of Canada
have
made and continue to make valuable contributions to Canadian society
and it
is considered appropriate that there be, in each year, a day to mark
and
celebrate these contributions and to recognize the different cultures
of the
Aboriginal peoples of Canada."
National Aboriginal Day
2015 comes at a time of sharpening struggle of
First Nations, Métis and Inuit peoples as they affirm their
hereditary, treaty
and constitutional rights.
The Harper government is using the occasion, as it has
done in the past,
to pay lip service to Aboriginal peoples' contributions and to pretend
that there
is no issue of First Nations, Métis and Inuit peoples' rights
and claims.
This is abundantly clear in the manner the Harperites
play coy with the
Summary of the Truth and Reconciliation Commission's final report to be
tabled later this year. It is noteworthy that on June 4, a day after
the Truth and
Reconciliation Commission's Summary was tabled, Bernard Valcourt,
Minister
of Aboriginal Affairs and Northern Development issued a statement about
initiating talks with the Métis National Council as part of
"Canada's broader
commitment to work with partners to develop a new reconciliation
framework
for addressing Section 35 Aboriginal rights. The goal is to develop
shared
solutions, provide clarity about ongoing rights and create a more
predictable
climate for economic investment and increased prosperity for the
benefit of
Aboriginal and non-Aboriginal communities." It is clear as clear can be
-- for
the Harper government, reconciliation does not mean a new way of
working
with Aboriginal peoples that is based on nation-to-nation relations,
mutual
respect and mutual benefit, but rather on blackmailing Métis,
Inuit and First
Nations to be "willing partners" to "create a more predictable climate
for
economic investment." This is how the Harper government defends
monopoly
right against the rights of the Aboriginal peoples and the peoples of
Canada
and Quebec. Anyone who stands in the way is a "terrorist" who is a
"security
risk" to Canada's "national interests."
The whole movement against
Bill C-51 and to Defeat Harper in the 2015
federal elections has brought Aboriginal peoples, the Canadian people
and the
Quebec people into closer united action because the fight of the
Aboriginal
peoples and the fight of the Canadian people and the Quebec people is
one
fight -- the fight for political and constitutional renewal so that the
rights of
all can be guaranteed in a new and modern constitution that respects,
upholds
and guarantees the rights of all. The 18th century colonial racist
state in
Canada is blocking the forward movement of society for which Aboriginal
peoples, the Canadian and Quebec working class, youth, women and all
the
collectives of society aspire.
On the occasion of National Aboriginal Day, Aboriginal
peoples are waging a principled and courageous fight from
coast-to-coast-to-coast for their hereditary, treaty and constitutional
rights and
against the threats and perfidy of the Canadian state under the Harper
Conservatives. The time is now for the working class and peoples of
Canada
and Quebec to work together with the Aboriginal peoples for a profound
renewal of the political arrangements in the society and to deprive the
authorities of their power to deprive the people of their rights. The
peoples
themselves must be empowered to take control of their economic,
political and
social affairs. Constitutional and political renewal is the
pre-condition for true
reconciliation between Aboriginal peoples, Canada and Quebec.

Celebrating Quebec Nationhood, June 24
Quebec's National Holiday
- Geneviève Royer -
Quebec's National Holiday on June 24 is an opportunity
to celebrate --
with music and song, meetings, parades and neighbourhood activities --
who
we are as a people, where we have come from and where we are going.
This
is a multi-faceted celebration, similar to the ancient summer solstice
and harvest
festivals, recognizing the need to come together to collectively
celebrate our
common history.
It is also a political celebration, a quality that
varies in its expression
depending on the times and circumstances. It is an occasion to reflect
on the
conduct of our leaders and discuss the state of the nation. This need
to
collectively take stock of the situation grows with the marginalization
of the
people from political power.
That sense of not being able to
exercise control over our lives, of being
unable to solve society's problems, has never been greater. Yet, by
drawing on
our rich history, unique experience of living together and relying on
the youth
to question all dogmas, the Quebec people are at the dawn of a
profound
renewal of the society. The primary problem to grapple with is the
question "Who decides?" Settling this question in the people's favour
is the
most
unifying endeavour today, one that is directly descended from the
struggle of
the Patriots of 1837-1838 for a Republic of Quebec.
Today the governments of Canada and of Quebec turn the
question of who
decides into a matter of avoiding quarrels. Under the pretext of
dealing with
the "real issues" they impose the agenda of private economic interests.
This
is possible because of a corrupt electoral process that allows the rich
minority
to usurp decision-making power, while they sow division in the body
politic
based on old prejudices.
In his inaugural speech, Premier Philippe Couillard said
that the election
of the Liberal Party was a "victory for diversity" (as opposed to what
the
Liberals and Conservatives call "xenophobia"). Yet two paragraphs later
he
reveals his concept of "diversity" to be precisely the same as has been
used
to divide the body politic for the last 200 years. Couillard says his
ancestors
came from Brittany in 1613 then claims that we are all equal insofar as
we
demonstrate "a commitment to our shared values." According to him these
are:
"French as the common language of our public space, while respecting
the
rights and historical contributions of our Anglophone compatriots." One
cannot
find a more narrow and archaic conception of rights.
The reality is that the old
Anglo-Canadian and European models of
multiculturalism and integration are racist to the core and are in
crisis.
Couillard's words show that the refusal to settle the question of who
decides
and the imposition of backward models only make things worse. Only a
modern nation-building project based on a modern definition of rights
will
solve the identity crisis and open society's path to progress.
Membership in the
body politic is a matter of right and rights belong to people by virtue
of their
being human; they are not based on their values or beliefs.
It is urgent to respond to this present situation of
disempowerment and
governments that serve private interests with full cognizance of
Quebec's
historical path. Quebec's National Holiday is another opportunity to
review our
historical journey and see how at all the major historical milestones,
the
defenders of the rich minority in Quebec and Canada use crises to block
the
efforts of the people to take their affairs in hand, so as to confound
the spirit
of renewal and maintain their stranglehold on power.
On the occasion of Quebec's National Holiday, at all the
public gatherings,
let us consider how to organize ourselves politically and together
decide our
fate. How can we unite in citizens' committees for democratic renewal
in
neighbourhoods and workplaces to keep the initiative in our hands and
take
the lead in deciding all the affairs of Quebec?

Origins of June 24 Celebrations
The origins of celebrations on or around June 24 are
ancient and varied.
Among the pagans the summer solstice (which according to the Julian
calendar
falls on June 24), was celebrated with bonfires symbolizing the
life-giving power
of the sun. In addition to being a ritual to mark the change of
seasons, the
ancient celebrations were also a milestone in the agricultural
production
cycle --
the beginning of arduous work on the land to be completed at the end of
summer. Today, these bonfires persist as the oldest symbol of these
celebrations.
In Catholic France during
medieval times, the celebration was known as
Saint John the Baptist Day, taking its name from the sanctuaries
established
by the Catholic Church to fight paganism. It was brought to the
colonies of the
French empire in opposition to the summer solstice celebrated by the
Aboriginal Nations around the same date. The church, through the
Council of
Trent (1545-1563) attempted to Christianize that custom, a celebration
of light
around a joyous bonfire, by replacing it with a portrayal of submission
in the
person of Saint John the Baptist, "the lamb of God." In the same vein,
Monseigneur de Saint-Vallier, in his 1702 Catechism for the Diocese of
Quebec directed at the Canadiens, noted that the Catholic
Church
in the New World considered the ceremony acceptable so long as the
"dances
and superstitions" of the Natives were banished.
In 1908, Pope Pius X, advocating the division of the
Canadian people into
so-called French Canadians and English Canadians that the British
empire was
so determined to impose, named Saint John the Baptist as the patron
saint of
"French Canadians."
The celebration regained its popular character
at the end of the
1960s with the resurgence of the movement for Quebec's independence and
the
people's sovereignty. The symbol of division and submission was swept
aside
and once again people danced joyfully around a bonfire. June 24 was
renamed
Quebec's National Holiday by a National Assembly resolution in May
1977.
It is also noteworthy that since 2004 on National
Aboriginal Day, which
falls around the same time of year, a "Solstice of the Nations" is
held by
the First Nations in Quebec, along with a "Fire Ceremony." These events
are
"an expression of exchange and friendship amongst nations living in
Quebec"
so as to "encourage closer ties amongst the peoples living on Quebec's
territory."
Today the celebration of June 24 rejoins another modern
and
forward-looking tradition established some 180 years ago -- the
celebration of the
Quebec nation and all its inhabitants. On March 8, 1834, 19th century
revolutionary and progressive patriots founded the Aide-toi, le ciel
t'aidera
Society ("God helps those who help themselves"). The aim of that
patriotic
institution was to "provide a designated place for thought (to all
those who
recognized the necessity for change) to discuss the country's state of
affairs"
and "to rekindle the burning desire of love of country, either by
shedding light
on the deeds of those governing us, or by paying a fair tribute of
praise to the
eloquent and brave defenders of our rights." It was that society, led
by elected
representative Ludger Duvernay, publisher and editor of the patriot
newspaper La Minerve, which on June 24, 1834 organized the
banquet in the
garden of the lawyer Jean-François-Marie-Joseph MacDonell to
institute a
national celebration for Canadiens of all origins. Today, the term
Quebeckers
of all origins is used.
June 24: 1834:
Ludger Duvernay and the members of the Aide-toi, le
ciel t'aidera Society
institute June 24 as
Quebec's National Day. (www.fetenationale.qc.ca)
What was established on June 24, 1834 by Ludger
Duvernay, his fellow
patriots and the elected members of the Patriot Party was a national
celebration. As for the original proposal, what Ludger Duvernay, the
patriots
and their political party organized was the celebration of the Canadiens,
today the Quebec nation. Thus, it was the first
celebration of the people
of that nation, where Duvernay, the patriots, the elected patriots and
their party
recognized the people as "the primary source of all legitimate
authority," and
in doing so also recognized their sovereignty.
This nationality was constituted in the course of the
people's opposition to
the British empire's military aggression and occupation of their
homeland,
against the destruction and domination of their national economy by the
monopolies of the British empire, such as the British American Land
Company
by oligarchs such as McGill, Molson and Moffat. Known as the Chateau
Clique, they controlled the Bank of Montreal, imports and exports,
naval and
railway construction and transportation, the mining and metallurgical
industry,
the Montreal Gas Lighting Company, and McGill University, amongst other
things. It was these forces who were served by the suppression of the
nascent
Quebec republic.
The members of that nation included indigenous peoples
and those who
hailed from Brittany, Normandy, France, Ireland, Scotland, England and
other
European countries. Canadiens were considered all those descended from
the
people of this new nation which constituted itself over time through
the
struggle for its independent development and the defence of its right
to
sovereignty. In undertaking their nation-building project, patriots of
all
backgrounds and their Patriot Party never acted in a sectarian manner
based
on language, religion or national origin. Never did they declare that
they were
"French Canadians," nor did they ever declare or take up the defence of
"French Canadians." The writings of the patriots, the Patriot Party and
its most
distinguished leaders such as Nelson, De Lorimier, Chénier,
Côté, Duvernay
(La Minerve), O'Callaghan (The Vindicator)
etc.,
never employed the "French Canadian" term or concept.
It should be remembered that the founders of
associations based on the
ethno-cultural, linguistic or religious origins during the 19th century
were
people such as McGill, Molson and Moffat. They used such associations
to
undermine the unity of the Canadiens in defence of their homeland,
their
national economy and the building of their republic.
This concept of "French Canadian," as well as today's
concepts of "old
stock Quebeckers" and "French Quebeckers," takes its origin from the
colonial
method of divide and rule. In this specific case, it originates with
Lord
Durham, the emissary and administrator of the British Empire who,
following
the suppression of the budding Quebec Republic through force,
arbitrarily and
unjustly divided the nation into "French Canadians" and "English
Canadians."
He falsified history for self-serving purposes. Durham claimed he found
"a
quarrel of two races," not the struggle of a people against occupation
and
domination by a foreign empire, against a state and an absolutist and
tyrannical government and a struggle for an independent homeland and
the
establishment of a democratic Republic.
The real division was not between two imaginary "races"
invented for all
intents and purposes by the monopolists and capitalists of the British
Empire
and their administrators. It was between a nation in search of its
independence
and sovereignty, determined to establish its democratic republic, and a
colonialist empire denying that nation's right to be.
The genius and force of character of that people which
constituted
itself
the nation on these lands already inhabited by the Aboriginal Nations,
was,
amongst other things, such that they refused to accept the negation of
their
nationality by the British Empire. The British administrators and their
collaborators and conciliators did everything to divide the people on
an ethno-cultural and linguistic basis such as shamelessly calling them
"French
Canadians" and "English Canadians." The Canadiens refused the negation
of
their right to be a nation comprised of all members of their society,
regardless
of national origin, language and beliefs.
Instead, they adopted a name taken from a Native word,
"kebek," thereby
affirming their nationhood as the Quebec nation. (Kebek is an Algonquin
word
meaning narrow passage or strait in this case referring to the area of
present
day Quebec City and the narrowing of the St. Lawrence River at Cape
Diamond).
The celebration of Quebec's National Day includes the
celebration of our
19th century patriots, Nelson, De Lorimier, Côté,
Chénier, Duvernay,
O'Callaghan, etc. -- all those who fought to establish an independent
homeland
and republic which vests sovereignty in the people. It includes
celebrating all
those who have espoused and continue to espouse the cause of the Quebec
Patriots, in particular all those committed to elaborating a
nation-building
project in conformity with the needs of the times.
Today once again the nation is called on to define
itself in the context of
the global turmoil of neo-liberalism. The resolution of this historical
problem
can only be guided by modern definitions as inspired by the patriots of
the
19th century, in opposition to today's versions of the same old dogmas
inherited from the colonial past. The nation-building project is once
again
intimately linked with establishing who decides and smashing the
outmoded
and archaic structures of the past. This is what will open a bright
future for a
modern Quebec nation that defends the rights of all.

Fourth National Day of Action for Refugee
Health
Care
Health Care Workers and Allies Demand Harper Government
Restore
Funding for Refugee Health Care
Toronto, June 15, 2015.
On June 15, Canadian Doctors for Refugee Care (CDRC) and
other health
care professionals and their allies held the fourth annual National Day
of
Action, the largest to date, in 20 cities across Canada to demand that
the
Harper Conservatives restore the funding that they have cut from health
care
for refugees. They denounced the Harper government's criminalization of
refugees for making "bogus" medical claims without providing any proof
that
this is the case and its justification for the cuts on that basis. The
actions were
also to demand that the Harper government immediately comply with the
Federal Court's July 2014 decision that calls for the reversal of cuts
to the
Interim Federal Health Program which provides funding for refugee
health
care, and describes these cuts as "cruel and unusual punishment"and a
violation of Charter rights.
Toronto
In Toronto, over 200 doctors, nurses, health care
students, settlement workers and others took part in a lunch-time rally
opposite
the Immigration and Refugee Board office on Victoria Street in the
city's
downtown.
The emcee for the rally,
Dr. Philip Berger, director of the Inner City
Health Program at St. Michael's Hospital and co-chair of CDRC,
denounced
the Harper government for its "heartless and soulless" disregard for
the health
care rights of refugees as a basic human right. He said that the health
care
community and all Canadians are united in opposing the criminalization
of
refugees by the Harper Conservatives. Dr. Berger pointed out that the
Harper
government monitored the rallies that took place last year and
information
about the CDRC's political actions has been reported to the Government
Operations Centre which is part of Canada's state security. He
emphasized that
it is the right of the medical profession and all concerned citizens to
raise their
voices against these brutal attacks on the right of refugees to health
care and
that the community will not be intimidated by these surveillance
tactics.
The political unity of the
medical community against the Conservative
government's cuts to refugee health care was echoed by Dr. Meb Rashid,
another co-chair of the CDRC and a physician at Women's College
Hospital.
Dr. Rashid condemned the Harper government for engaging in the politics
of
division to try to score cheap political points off the backs of
refugees. He
stated that broad sections of the Canadian people, including prominent
authors,
musicians and public personalities, have stood with refugees and
demanded
that the Conservatives respect their rights including their right to
health care.
He stated that instead of spending public funds to appeal the Federal
Court's
just decision, the government should use the $1.4 million and counting
in
public funds it has used to challenge the law, to simply provide
refugees with
the health care that they need.
Another speaker stated that the $20 million that have
been cut from the
Interim Federal Health Program amounts to the total cost of the Prime
Minister's
security
detail.
Dr. Fatima Uddin, a family
physician, whose family came to Canada as
refugees from Bangladesh, noted that if not for the medical care her
father
received upon their arrival here, he would not have known that he had
colon
cancer and thanks to the treatment he received, her father was able to
live for
fifteen more productive years. Health care for refugees are life and
death
issues said Dr. Uddin and Canada has an obligation to ensure that the
health
care of refugees as part of the Canadian people, is upheld and fully
funded.
Dr. Tatiana Friere-Lizama, whose family came to Canada
as refugees
fleeing the Pinochet dictatorship in Chile noted that one of the
features of that
dictatorship was to criminalize dissent and deny people's rights. She
stated that
it is unacceptable that the Harper government is trying to put a wedge
between
refugees and the rest of Canadians by criminalizing refugees. There is
no such
divide, we are all one, Dr. Friere-Lizama said.
Dr. Katherine Rouleau the Director of Global Health,
Department of
Family and Community Medicine at the University of Toronto stated that
the
first duty of doctors and medical professionals is to the patient and
it is
unacceptable that the Harper Conservatives's health care policies are
aimed at
dehumanizing people. She stressed that it is the collective voice of
the health
care professionals and their allies gathered at the rally that is
setting forth a
national health care policy that respects human rights. She pointed out
that the
fall elections will be an opportunity for everyone to take a stand
against these
brutal and inhumane cuts and to hold the Harper government to account.

A representative of the Registered Nurses' Association
of Ontario (RNAO),
Tim Lenartowych, Director of Nursing and Health Policy, denounced the
Harper government's cuts to refugee health programs and said that the
unity
of the health care community and all Canadians is decisive in winning
this
battle. He reported that the RNAO has intervener status at the upcoming
appeal by the Harper government of the Federal Court ruling and that
the
organization will do everything it can to ensure that the appeal is
defeated.
The last speaker, Executive
Director of the Queen West Community
Health Centre Angela Robertson, militantly condemned the Harper
government
for its anti-refugee attacks and called it an attack on all Canadians.
"We are
indivisible," she emphasized. Robertson stated that it is the broad
unity of the
people for the rights of everyone and their collective conviction to
ensure that
justice is done that will prevail. She called the Harper government's
policies
unjust and retrogressive and called on everyone to take action in the
federal
elections. She led the crowd in several chants including "What do we
want!
We want health care for refugees! We want health care for All!
Dr. Berger wrapped up the rally by stating that CDRC
will be active in the
fall election campaign dogging Conservative and other candidates to get
them
to commit to restoring full funding for refugee health care as soon as
possible.
Halifax
Montreal
Ottawa
Markham
Hamilton
Kitchener-Waterloo
Winnipeg
Saskatoon
Moose Jaw
Vancouver

Work to Promote Canada-Cuba Friendship
Cuban Hero Fernando González Warmly
Received in
Toronto
Fernando González
speaks to standing room only crowd at Steelworkers Hall, May 30, 2015.
Fernando González, one of the Five anti-terrorist
heroes who was unjustly
imprisoned in the U.S. for 15 years, addressed friends, supporters and
activists
from the Cuba solidarity movement at a memorable gathering at the
Steelworkers' Hall in Toronto on May 30. The Five were arrested in 1998
after informing U.S. authorities of the terrorist plots of anti-Cuba
reactionaries
based in Miami. They were held in prison for many years on false
convictions
due to the U.S. hostile policy toward Cuba, that has only recently
begun to
shift.
The event coincided with the 7th Biennial Convention of
the Canadian
Network on Cuba held in Toronto on May 30 and 31. It also marked the
final
stop on the cross-Canada tour of Cuban doctor José de
Jesús Portilla Garcia
to inform Canadians about the efforts of Cuba's contribution to the
fight
against Ebola in West Africa.
González received a standing ovation as he
entered the packed hall, with
shouts of "Viva Cuba!"; "Viva Fidel!" and "Viva Raúl!" Toronto
lawyer Juan
Carranza, the emcee for the evening, introduced the dignitaries seated
with
González and Dr. Garcia at the head table: Cuban Ambassador to
Canada Julio
Garmendía Peña; Consul General of Cuba in Toronto Javier
Dómokos Ruiz;
U of T Professor Emeritus Keith Ellis; and the co-chairs of the
Canadian Network on Cuba, Elizabeth Hill and
Isaac
Saney. Martha Pardo, the Consul of the Bolivarian Republic of Venezuela
in
Toronto, was also recognized.
Fernando González
is greeted
enthusiastically as he enters the Toronto Steelworkers' Hall.
Dr. Garcia gave a brief overview of the scope of Cuba's
internationalist
medical assistance to the peoples of the world, especially in times of
emergency (see the report on this tour below). He then ceded the floor
to
Fernando González.
González, who is now a Vice President of the
Cuban Institute of
Friendship with the Peoples (ICAP), began by expressing the gratitude
of the
Cuban Five to all those who applied their "creativity and ingenuity"
over the
years to demand their freedom. He declared that the victory of December
17,
2014, when the last three of the Cuban Five were released, belongs to
all those
who contributed to these efforts.
He spoke to one of the questions on everyone's minds --
how did the Five
withstand their long and harsh imprisonment? Gonzalez referred directly
to Dr.
Portilla's remarks, explaining that he drew upon the pride and honour
of
defending the Cuban Revolution as a source of steadfastness. He
recalled a
letter he received in prison from a Cuban doctor serving as part of a
team in
the small South Pacific island nation of Nauru, which raised his
spirits and
reminded him of what the Cuban Five were defending. González
also revealed
that he shared a cell for four years with Puerto Rican patriot Oscar
López
Rivera, who has now spent 34 years in U.S. prisons for the crime of
advocating independence for Puerto Rico.
Professor Keith Ellis expressed the gratitude of
Canadians for all that Cuba
has done for people around the world. He pointed out that Cuba's
response to
people in need started at home, with help for the victims of Hurricane
Flora
in 1963. In 2005, the Henry Reeve Brigade was created to provide
immediate
relief for places in the world stricken by natural disasters. The
brigade has
since brought medical assistance to countries such as Pakistan and
Haiti and
now Nepal. Professor Ellis pointed out that a reliable way to help
people
in the
world who are in dire need is to support Cuba's efforts. A collection
was taken
and more than $800 was raised at the meeting to support the Cuban
medical
team fighting Ebola in West Africa.
Tamara Hansen, from Vancouver Communities in Solidarity
with Cuba,
and Alison Bodine, of the Free the Five Committee --Vancouver,
presented a
special memorial book to González as a tribute to all of the
Cuban Five. The
book contains posters produced for the 110 monthly pickets held in
front of
the U.S. consulate in Vancouver to demand the release of the Five.

During the question period after the presentations,
González was asked
whether he had been offered any deals when he was unjustly arrested in
1998.
He affirmed that this was the case, and that the FBI took him to the
Federal
Detention Center in Miami and tried to coerce him by saying, "You're
missing
the opportunity to stay in the land of the free." He was also warned,
"Fidel
Castro is not going to lift a finger for you." On hearing that, he had
to laugh
inside because he knew that Cuba has a history of "never leaving a soul
behind." Following that, the prosecutors used the long period of
isolation prior
to the trial to try to break the will of the Five and get them to admit
to the
false accusations, but to no avail. Later, in 2009, when he and Antonio
Guerrero were brought to court in Miami as part of the appeal process,
the
prosecution contacted Guerrero's lawyer to see if he wanted to talk
about a
deal. The others were approached too at times, but none of the Five
would
agree to say that they were guilty of any crime.
Regarding the U.S. change in policy toward Cuba,
González stated that he
is hopeful for the future. He explained that he grew up with U.S.
hostility, the
possibility of a military invasion and an economic blockade that still
exists
today, so he is vigilant because the aim of the U.S. remains to
undermine
the
Cuban Revolution. "It's a challenge we're ready for," he said,
acknowledging
that the present circumstances are not that of a "shooting war."
Instead, "the
adversary comes disguised in certain ways, [making them] more difficult
to
identify." But Cuba has a long history of fighting and "we're going to
win this
one too," he said.
He noted that, since December 17, 2014, the U.S. and
Cuban governments
have been at the negotiating table but the blockade is still in full
force, the
Guantanamo Bay naval base is still illegally occupied and the fight to
defend
Cuba's sovereignty continues. His conclusion was that "life is struggle
and that
the horizon is always moving."
Promoting Cuba's Participation in 2015 Pan Am Games
Cuban Ambassador Julio
Garmendía Peña (left) presents his country's blog for the
2015 Pan Am Games to the Canadian Cuba solidarity movement.
As
part of closing remarks, Cuban Ambassador Garmendía Peña
announced that Cuba will
be
bringing a delegation of more than 700 representatives, including more
than
450
athletes, to the Pan American Games to be held in Toronto from July 10
to 26
and that a new trilingual blog (English, French and Spanish), Twitter
and
Facebook page have been set up to fully profile Cuba's participation.
He
appealed to everyone to support the athletes and also to enjoy the
Cuban
cultural activities that will be happening as part of Panamania, the
arts and
cultural program associated with the Pan Am Games. The website address
is: cubapanam2015.ca, Twitter: @cubapanam2015 and
Facebook: Cuba Pan
Am 2015.
Professor Ellis encouraged everyone to attend a new
multi-media theatrical
production, "Niágara -- A Pan-American Story" that will premier
in Toronto
from July 23 to 26 as part of Panamania. The show is based on the life
of José
María Heredia, the Cuban poet who wrote the famous poem
"Niágara" in 1824
as a reflection on his life in exile from his homeland. It is directed
by
Veronica Tennant, former prima ballerina with the National Ballet of
Canada,
who is now a filmmaker, director and producer.

Doctor's Tour Highlights Work of Humanitarian Brigades
in Fight
Against Ebola
Dr. José de
Jesús García Portilla visits Vancouver, May 21, 2015.
From May 15 to 30, Cuban doctor José de
Jesús García Portilla toured
Canada and Quebec to present Cuba's role in the fight against Ebola in
West
Africa. Invited by the Canadian Network on Cuba (CNC), he visited nine
cities in 16 days -- Toronto, Halifax, Vancouver Calgary, Ottawa,
Montreal,
Kingston, Hamilton and Niagara. In Hamilton, a special session was
organized
for health care students and professionals in coordination with the
McMaster
Michael DeGroote School of Medicine's Global Health Committee and
Infectious Diseases Interest Group. Those who attended found Dr.
Portilla's
presentations explaining Cuba's role to assist the peoples of Liberia,
Sierra
Leone and Guinea and many others around the world captivating and
inspiring.
Dr. Portilla pointed out that in Cuba, "Health is not a
business but a
human right," guaranteed in the country's constitution. He outlined the
development of the Cuban health system since the Revolution in 1959,
explaining that the major focus of health care training, delivery,
research, etc.
is the prevention of illness.
He highlighted Cuba's progress in various health
indicators, such as the
significant decrease in infant mortality from 69 per 1,000 births in
1959 to 4.2
per 1,000 births in 2014. Cuba also has a high life expectancy of 79
years, the
same as the United States. Since the triumph of the Revolution, 13
infectious
diseases have been eliminated in Cuba.

Dr. Portilla's tour
concludes in Toronto,
on May 30, 2015.
|
In addition to these achievements, at each stop along
the tour Dr. Portilla
explained with great pride that for almost 50 years Cuba has offered
medical
assistance to countries in Africa, Asia, Latin America and the
Caribbean. He
noted that there are currently 52,000 Cuban health workers serving in
67
countries and, over the years, there have been 140,000 who have
provided
internationalist medical aid in 108 countries in times of urgent need.
The first
Cuban medical mission was deployed to Chile after the Valdivia
earthquake
on May 22, 1960. His own involvement began in Africa, specifically
Congo
and Angola. He explained that Cubans feel they have a duty to go when
people need help anywhere in the world and that "Cuba has never said
no."
Regarding Cuba's role to assist in the Ebola crisis that
began in 2014 in
West Africa, Cuba once again rose to the occasion without any
hesitation or
reluctance when the request for assistance came from UN Secretary
General
Ban Ki-moon and Director of the World Health Organization, Dr. Margaret
Chan.
The intervention of Cuban medical personnel in
collaboration with those
from other countries and local health workers, lowered the Ebola
mortality rate
from 80 per cent to about 20 per cent. Counter to the disinformation
spread
by media monopoly about the impossibility of containing the scourge of
Ebola,
the Cuban medical brigade gained great practical experience. Cuba
wasted no
time in initiating an intensive training program to share its
experience with
medical personnel around the world.
On May 12, Cuba sent personnel to Nepal to assist in the
wake of the
April 25 earthquake, whereas Canada only sent personnel several days
later.
Dr. Portilla credited leader of the Revolution Fidel Castro for
educating and
imbuing the Cuban people with the spirit of internationalism.
Dr. Portilla's tour concluded in Toronto, on May 30 at
an event where
Cuban anti-terrorist hero Fernando Gonzalez was also a guest speaker
and
coincided with the seventh biennial convention of the Canadian Network
on
Cuba.
Dr. José de
Jesús García Portilla visits Montreal, May 25, 2015.

Canadian Network on Cuba Sets Work to End U.S. Blockade
and
Strengthen Canada-Cuba Relations
From May 30-31, the Canadian Network on Cuba (CNC) held
its 7th
Biennial Convention in Toronto. Delegates and alternate delegates from
19
member organizations participated.
Several important observers and invited guests were also
in attendance,
including His Excellency Julio Garmendía Peña, Ambassador
of Cuba to
Canada, Javier Dómokos Ruiz, Toronto Consul General of Cuba; and
other
Cuban diplomats. The Quebec-Cuba Solidarity Roundtable also sent
representatives to the Convention.
The Convention welcomed Fernando González
Llort of the Cuban
Five. González participated in his capacity as Vice-President of
the
Cuban
Institute for Friendship with the Peoples (ICAP). He was accompanied by
Sandra Ramírez Rodriguez, Director of the North American Desk of
ICAP.
Cuban doctor José de Jesús Portilla
García was another important guest.
The CNC executive and CNC member organizations presented
reports
covering the two years since the 6th Convention. The reports
illustrated the
breadth and depth of Canada-Cuba solidarity activities from Vancouver
to
Halifax that encompassed the political, social and cultural spheres.
The CNC's
work included the very successful cross-Canada tours of Geraldo Alfonso
and
Dr. Portilla Garcia, as well as the international symposium "Africa's
Unknown
War:
Apartheid Terror, Cuba & Southern Africa Liberation" held in
Toronto,
September 2013. Member groups reported on the struggle to free the
Cuban
Five and the tremendous joy at their liberation. The scope and
diversity of this
work encompassed a variety of arenas, from political work with
parliamentarians and unions to cultural performances and festivals to
ongoing
information meetings, conferences, pickets and leafleting.
Recognizing that the movement in solidarity with Cuba
has arrived at a
new moment which poses specific challenges, CNC delegates resolved to
mobilize Canadian public and political opinion to end the U.S. economic
blockade of the island and its occupation of Guantanamo Bay and to
challenge
the disinformation campaign against Cuba. Based on the reports,
discussions
and deliberations, resolutions were adopted to strengthen and guide the
CNC's
work over the next two years and measures were taken to update the
CNC's
by-laws.
Special attention was paid to other areas of ongoing
work, including the
highly successful Ernesto Che Guevara Volunteer Work Brigade and annual
Pastors for Peace Caravan, and the work with Canadian parliamentarians.
Delegates also pledged to mobilize support for the Cubans participating
in the
15th Pan American Games that will be held in Toronto and its environs
from
July 10-26, 2015. The Convention committed to support a symposium in
Toronto this year to commemorate the 40th Anniversary of
Operación
Carlota,
the beginning of Cuba's internationalist mission in Angola that was
crucial to
the success of the southern African national liberation and
anti-colonial
struggles.
A new CNC executive was elected to implement the
Convention's
decisions and realize the work plan for 2015-2017: Michel Dugre, Julio
Fonseca, Don Foreman, Elizabeth Hill, Isaac Saney, Aaron Shields and
Saleh
Waziruddin. The executive subsequently selected Elizabeth Hill and
Isaac
Saney to continue as co-chairs. Isaac Saney was also re-appointed
National
Spokesperson and Elizabeth Hill Treasurer, with Saleh Waziruddin
assuming
the position of Secretary.
Founded in 2002, the CNC is "committed to the
strengthening of
friendship and solidarity between the peoples of Canada and Cuba. To
this
end, we work with the Cuban Institute for Friendship with the
Peoples
(ICAP) and other international and national partners in order to
promote
social, cultural, political and economic relations between Canada and
Cuba on
the basis of mutual respect and non-interference."
The exciting and full two-day program reflected the
rich, dynamic and
spirited Canada-Cuba solidarity movement, which has been in existence
for
more than fifty years. It is a movement rooted in the overwhelming
respect
and admiration of Canadians for Cuba's considerable achievements and
affirmation of its right to independence and self-determination despite
facing
the unceasing aggression of the United States. This respect and
admiration
have forged unbreakable ties of friendship and solidarity between the
peoples
of Canada and Cuba.
The Convention also included a series of panel
discussions.
Planning for 2017: New Challenges New Struggles
This
session was addressed by CNC Co-Chair Elizabeth Hill, Sandra
Ramírez from
ICAP and Tamara Hansen from Vancouver Communities in Solidarity with
Cuba. Their presentations highlighted the challenges facing the
Canada-Cuba
solidarity movement in the coming period and the opportunities that
exist to
further strengthen it and expand its reach.
Canada-Cuba Solidarity and 70 Years of Canada-Cuba
Diplomatic
Relations

Former MP Jean
Augustine and
Ambassador Garmendía Peña.
|
The Honourable Jean Augustine, born in Grenada and a
former Liberal MP
for Etobicoke-Lakeshore, began this panel discussion. Augustine was
Chair of the
Standing
Committee on Foreign Affairs and International Trade and Speaker of the
House of Commons in 2004. Her presentation focussed on the role of
parliamentarians in fostering Canada-Cuba relations. She regaled the
audience
with vignettes of her trips to Cuba especially her various meetings
with the
historic leader of the Cuban Revolution Fidel Castro.
Ambassador Garmendía
Peña
then spoke, pointing out that despite the immense and historic victory
of winning
the
freedom of the Cuban Five and the normalization of relations between
the U.S.
and Cuba announced by Presidents Castro and Obama on December 17, 2014,
the economic blockade is still in force. The work remains to end the
blockade,
the illegal U.S. occupation of Guantanamo Bay, and the U.S. policy of
destabilizing
Cuba that it continues under these new circumstances. The Ambassador
emphasized the need to continue building and deepening the existing
relations
of friendship and cooperation that exist between Canada and Cuba.
Nino Pagliccia, editor of the recently released book Cuba
Solidarity
in
Canada:
Five
Decades
of
People-to-People
Foreign
Relations,
outlined how Cuba's internationalism provides a foreign policy model in
which
solidarity is the fundamental principle.
Cuba, Today and Tomorrow: Renewal Change and Continuity
Struggles
Left to right: Toronto
Consul General of Cuba Javier Dómokos Ruis, U of T Professor
Emeritus
Keith
Ellis and CNC Co-Chair Isaac Saney.
At the Convention's final panel session, University of
Toronto Professor Emeritus Keith Ellis, Consul General of Cuba in
Toronto Javier Dómokos Ruiz and CNC
Co-Chair Isaac Saney presented lively information on the ongoing
renovation
and updating of the Cuban economy and the significance of U.S.
President
Obama's new policy. The panel stressed that the economic measures being
implemented by Cuba are taking place within the process of the renewal
and
continuity of the Cuban revolutionary and socialist project, and that
while the
people of Cuba welcomed the steps towards the possible normalization of
relations with the United States, they will never renounce their
independence,
sovereignty or socialism.

Peoples' Summit at CELAC-EU
Summit in
Brussels
An End must Be Put to Injustice Created by
an
International Order,
Which Is Increasingly
Unjust and Exclusive
- Miguel Díaz-Canel
Bermúdez, First Vice President,
Cuban Council
of State and Ministers -
Hall at EU-CELAC Summit in
Brussells.
Speech presented June 11 by
Miguel Díaz-Canel
Bermúdez, first Vice
President of Cuba's Council of State and Ministers, who led the
country's
delegation to the 2nd Community of Latin American and Caribbean
States-European Union (CELAC-EU) Summit and the Peoples' Summit, in
Brussels.
***
Presidents, friends, dear participants in this Peoples'
Summit:
I bring, above all, a
greeting of solidarity from the
historic leader of the
Cuban Revolution, Commander in Chief Fidel Castro (Applause and
exclamations of "Fidel, Fidel, Fidel!"), as well as a greeting
from our
President
Raúl Castro (Applause),
heartfelt,
warm
greetings
from
the
government
and
people of Cuba, (Applause)
for you, organizers and participants in this
important meeting.
With your profound reflections, you have contributed to
sowing
consciousness of the real problems which we face, and proposed ways to
resolve them. We would now attempt, in a few minutes, to explain the
ideas
which Cuba defended in the CELAC-European Union Summit, as an active
member of the Community of Latin American and Caribbean States.
Yesterday I recalled the first bi-regional Summit held
in 1999, where the
European Union proposed a "strategic partnership." Sixteen years later,
this
"partnership" has not been realized, because sovereign equality and
mutual
respect do not predominate in our relations, [which are] generally
abusive and
discriminatory, marked by asymmetries in development, and marginal
economic-commercial and cooperation relations.
[What is] needed, therefore, is an end to injustice
created by an
international order,
which is increasingly unjust and exclusive, as explained here by
President
Correa, which has generated unbridled consumerism, the destruction of
the
environment, financial speculation, and which is controlled by
imperialism, by
its oligarchic banks, and groups of powerful transnational
corporations, for the
benefit of only a few.
Current threats to the peace and security of nations
does not come from
the marginalized of the world capitalist system, but rather from those
who
impel nations into crisis by adopting programs of austerity which come
at an
incalculable human cost, and increasingly reinforce the differences
between
regions and the countries within them.
Nor do these [threats] come from students expelled from
universities,
unemployed workers, or thousands of youth of working age without jobs,
the
marginalized, the indignant, the women not receiving equal pay for
equal work (Applause) or when
pension funds and social security for the retired
are
bankrupted or cut.
Much less can minorities or national groups such as
Afro-descendents,
original peoples of Our America, or the Romani in Europe be held
responsible,
or immigrants blamed, those persecuted for racist reasons, xenophobia,
anti-Semitism, Islamophobia and the absence of [the] basic feeling of
human
solidarity. On the contrary, such conduct has led to the re-emergence
of
fascism, defeated on this continent 70 years ago, and a reality we must
never
forget. (Applause)
If we have learned something in Latin America and the
Caribbean, it is
that today's serious social and economic problems will not be resolved
with
the use of weapons and, much less, with dictatorships or terror, evils
which we
have suffered enough in Our America and in Europe.
What should be treated as a crime is initiating
conflicts between countries,
threatening peace and international security, NATO's advance toward
Russia's
borders -- providing weaponry or supporting military adventures beyond
the
Alliance's borders, parcelling out zones of influence, or sources of
primary
resources. (Applause) This
only brings death, destruction, instability
and more
poverty, since the significant resources needed for development are
used to
finance new wars.
Dear compañeras and compañeros:
After decades of struggle against efforts to isolate our
Revolution in Latin
America and the Caribbean, we have taken new paths toward political,
economic and social transformations to the benefit of our peoples.
Several
revolutionary and progressive governments -- those mentioned by Rafael
Correa -- are working to reduce poverty and inequality, to strengthen
political
and economic independence, and promote Latin American and Caribbean
integration.
We insist on justice and equality. We value the
legitimate right of our
societies to freely choose their own route toward development, without
external pressure or crude interference by those who still refuse to
accept the
sovereign choices of our peoples, and attempt to reverse them.
We are working to consolidate our young Community of
Latin American
and Caribbean States, an organization through which the dreams
of
our liberators are taking shape, the visions of our most committed
political
leaders and the aspirations of the left, popular movements, trade
unions,
student organizations, campesinos, women and artists of the continent.
In this organization all sovereign nations of the region
come together,
united in diversity, to learn to confront the complex challenges of
today's
world and of the future. The Proclamation of Latin America and the
Caribbean
as a Zone of Peace, approved by the 2nd CELAC Summit in Havana, in
January of 2014, reaffirms the principles which must govern relations
between
our countries, and the inalienable right to elect one's own political,
economic,
social and cultural system, as an essential condition for the assurance
of
peaceful coexistence among nations.
Nevertheless, these modest efforts are being heavily
attacked by imperialist
forces, as is occurring today with the sister Bolivarian and Chavista
revolution
of Venezuela. (Applause)
There in Venezuela, the Venezuelan people and
their
constitutional government -- headed by their legitimate leader,
President
Nicolás Maduro Moros (Applause)
and
supported
by
a
strong
civil-military
union
--
are
defending
and
consolidating
a
revolution
which
now
belongs
to
all
Latin
Americans and Caribbeans: the revolution of Chávez, the
revolution of
Latin America. (Applause)
Today Venezuela is a symbol, and is therefore not alone.
It has the support
of our entire region, and is intent upon preserving the example of its
founder
and moral guide, the unforgettable commander and President, Hugo
Chávez
Frías, initiator of this change of era. (Applause) Of course,
Venezuelans have
all of our loyalty and yours, and Venezuela knows Cuba will never fail
her. (Applause)
I reiterate our support to Argentina in its legitimate
demand for
sovereignty over the Malvinas Islands (Applause);
to
Ecuador,
faced
with
the
outrages
of
transnationals
and
media
corporations;
to
the
just
claims
of
Caribbean
nations
for
preferential
treatment
and
compensation
for
the
damages
caused
by
colonization and slavery; and our unwavering commitment to
Puerto
Rican independence. (Applause)
Compañeras y compañeros:
Cuba is advancing in the updating of its economic and
social model, to
preserve the great conquests of the Revolution, to perfect our
socialism, which
we will never renounce, and to provide [a] sustainable higher standard
of
living
for our people.
It was precisely the dignity and perseverance of Cubans
which led the U.S.
to recognize the failure of its policy toward Cuba, implemented over 11
administrations, and which facilitated the return to the Homeland of
the five
anti-terrorist fighters, (Applause)
events
which
led
to
negotiations
for
the
reestablishment
of
diplomatic
relations
with
the
United
States,
which
was
also
a
result
of the solidarity shown by all the peoples and many
governments of
the world, and also due to the solidarity with Cuba movement, of which
you
are a part, and why we have come to thank you. (Applause)
This step will be the first on the long, difficult path
toward normalization
of relations with this country, during which we will not concede a
single one
of the principles for which we have struggled and resisted for so many
years. (Applause)
We will continue to demand an end to the criminal
economic, commercial
and financial blockade of our country -- which remains intact -- and
the return
of territory illegally occupied by the Guantánamo Naval Base,
against the will
of the Cuban people. (Applause)
That is why we say that a better understanding of
realities, and the search
for solutions to the serious problems affecting men and women on both
continents, are the raison
d'être of these Summits of the
Peoples, and the
meetings of committed Parliamentarians and intellectuals, where
solidarity
predominates, which, as Che Guevara taught us, is the expression of
tenderness and love among human beings. (Applause)
We are convinced that not only is a better world
possible, but imperative
for the survival of humanity. (Applause)
Once
again,
I
thank
you,
in
the
name
of
Cuba,
for
the
respect,
affection
and
solidarity
you
show
us,
day
by
day,
in
our
battle.
Let us fight without pause for
peace, justice and
solidarity!
Long live the peoples!
And as we say in Cuba, ¡Patria o Muerte!
¡Venceremos!
(Ovation)

Ecuador
People Unite to Defeat Anti-Government Violence
Mass rally and changing of
the guard ceremony in Quito, June 15, 2015, expresses support
for the government of Ecuador President Rafael Correa.
Reactionary opposition forces are attempting to
destabilize the
democratically-elected government of President Rafael Correa in Ecuador
by
sowing disinformation about the government and its Citizens'
Revolution, and
inciting civil unrest and violence. President Correa alleges that the
protests are part of a
destabilization plan
orchestrated by the local opposition forces backed by foreign support
so as to
remove him from office.
On June 5, President Rafael Correa submitted to
Ecuador's National Assembly a draft of a new Law on Wealth
Redistribution instituting an inheritance tax, "provoking immediate
discontent among the richest sectors of this South American nation," Granma International reports.
"The backdrop [to the law] is a striking figure the
President forcefully
reiterated in recent days: 2 per cent of Ecuadoran families own 90 per
cent of big
business
in the country," Granma International adds.
President Correa told the press, "Ownership
concentration was revealed.
This is bad; it is one of the sources of inequality in Ecuador and the
world,"
clarifying that the tax is only "for large conglomerates that generate
dynasties."
For direct heirs --
children, grandchildren, parents or grandparents -- the
new legislation provides for a marginal rate of up to 47.5 per cent
which
applies only to the wealthiest 1 per cent. This percentage is lower
than the
marginal rates of Japan (55 per cent) and South Korea (50 per cent) and
just a bit
higher
than in France (45 per cent) and the United States and Britain (both 40
per cent).
One of the first representatives of the opposition to
express their
disagreement with this measure was banker and former presidential
candidate,
Guillermo Lasso, former economic adviser and ambassador-at-large of the
neo-liberal government of Lucio Gutiérrez.
Lasso condemned the new inheritance tax law stating
that, "the State seeks to finish off the Ecuadoran family."
According to Ecuadoran economic analyst Juan Carlos
Jaramillo, "with a
marginal rate of 47.5 per cent, heirs never lose majority shareholder
control
over the companies of their parents, thus it is wrong to argue that
with this
rate the intention is to put an end to family businesses."
"Beyond the inheritance tax itself, what seems to be
under discussion in
Ecuador is to what extent the State can autonomously intervene in the
economic arena," writes Granma. The item continues:
"It is an argument that is currently taking place across
the rest of the
countries home to post-neo-liberal governments, particularly at a time
of
slower economic growth throughout the region, due to a fall in
commodity
prices, but, above all, a reduction in growth forecasts worldwide.
"In short, the debate centers on sustaining -- and
expanding -- the social
programs implemented by these post-neo-liberal governments, for which
resources are required.
"Lasso's argument -- not to raise taxes on the
wealthiest, but rather reduce
them -- is in line with proposals from other opposition leaders in the
region,
such as Mauricio Macri in Argentina and Aécio Neves in Brazil,
who have
announced that, on becoming president, they would continue with these
social
policies, but under no circumstances upset business interests. Where
would
they get the money, you ask. Who knows.
"Ecuador, at least, offers a realistic solution --
similar to that implemented
in certain European and Asian States -- to continue with the social
policy
outlined in the National Plan for Good Living 2013-2017: that those who
have
more should contribute more, thus banking on redistribution guaranteed
by the
very Constitution of the country. The continental debate on this issue
is only
likely to intensify in the coming months."

Support for President Correa, Quito, Ecuador, June 15, 2015.
On June 16, President Correa said that in order to
promote tranquility and
calm above all prior to Pope Francis' arrival on July 5, he would
withdraw
temporarily the draft bill aimed at increasing taxes on inheritances
and another
targeting capital gains.
"In order to prevent [right-wing] groups from causing
more violence,
especially when we need for Pope Francis' visit an atmosphere of peace,
rejoicing, reflection to welcome him, I have decided to withdraw
temporarily
the above-mentioned draft bills," he explained.
According to Correa, based on that decision, a large
nationwide debate
will be opened on the proposals, which, he repeated, will never affect
either
the poor or the middle class, as stated by their detractors.
"We want debates, not shouts; we want arguments, not
manipulations,"
stressed Correa. In this regard, the president is addressing the broad
masses of Ecuadorans who brought his government to power on the
basis of ensuring their own empowerment through new political
arrangements and ending their marginalization and exploitation by the
reactionary elites. It is these forces who are united in action to
defeat the anti-government violence of the reactionaries.

Seeking a Solution for Greek Debt Crisis
Truth Commission Says Much of Greek Debt Is Illegal
A truth commission set up
by Greece’s Parliament which investigated the Greek debt has handed in
its findings, news agencies report. The report claims that much of the
country's more than U.S.$364 billion debt was contracted illegally and
should not be paid. Despite the fact that it was incurred illegally,
those who benefitted continue to demand its repayment. Time is running
out for Greece to strike a deal and avoid defaulting on a U.S.$1.8
billion International Monetary Fund (IMF) loan due at the end of June,
they say. This payment is the first in a series Greece will be expected
to deliver.
IMF chief Christine Lagarde raised the stakes on June 18 by
telling Greece there would be no grace period or delays permissible in
repaying the money.
In a June 19 statement issued by the office of Greek Prime Minister
Alexis Tsipras he stated, "The leaders' summit [June 22] is a positive
development on the road toward a deal." He said, "All those who are
betting on crisis and terror scenarios will be proven wrong." He added,
"There will be a solution based on respecting EU rules and democracy
which would allow Greece to return to growth in the euro."
Tsipras said that despite the country moving closer to the brink of
default Greece would remain in the eurozone.
News agencies report that the talks over a cash-for-reforms deal for
Greece remained at an impasse after a recent meeting of eurozone
finance ministers. Bank withdrawals from Greek lenders have accelerated
in the past week. People withdrew some U.S.$2.2 billion from banks
between June 15 and 17 after negotiations in Brussels collapsed over
the weekend of June 13 and 14, Reuters said citing senior banking
sources. They added that if this continues at the present pace,
Greece's government will be forced to impose a ration on cash
withdrawals.
Prime Minister Tsipras has refused to submit to pressure by Greece's
creditors demanding the Greek government make concessions over tax
hikes and pension reforms -- in other words, further austerity measures
the government vowed it would not accept.
According to Reuters, the European Central Bank's governing council was
to hold a telephone conference June 19 to discuss extending emergency
liquidity for the lenders.

St. Petersburg Economic Forum and
EU's Bitter Predicament
- Pyotr Iskenderov -
Part One
The St. Petersburg International Economic Forum (SPIEF)
kicked off on
June 18 against the background of economic woes faced by Europe. While
focussing on anti-Russia punitive measures, the EU is losing control
over the
European economy. President Donald Tusk convenes a Euro Summit on
Greece Monday, June 22. He said the failure of EU finance ministers on
Thursday evening, June 18, to agree on a deal to release desperately
needed
bailout aid meant it was now time to "urgently discuss" the Greek
crisis "at
the highest political level".
The chance to reach an agreement is slim. Pressure was
also increased on
Greece earlier on Thursday, June 18, when the head of the International
Monetary Fund (IMF), Christine Lagarde, warned there was "no period of
grace" for Greece over its impending debt repayment deadline. She said
Greece would be in default on its loans from the IMF if it failed to
make a
1.6bn euro (£1.1bn; $1.8bn) payment on June 30. Before that the
International
Monetary Fund said it was halting bailout talks with Greece in a stark
signal
of its exasperation about a lack of progress toward a deal to avert a
Greek
default, as European leaders suggested negotiations were nearing their
endgame. "There are major differences between us in most key areas,"
said
IMF spokesman Gerry Rice in an unusual public statement aimed at
heightening pressure on the left-wing government of Prime Minister
Alexis
Tsipras. "There has been no progress in narrowing these differences
recently
", he said. "Thus, we are well away from an agreement." He added that
the
IMF team negotiating with Greece had been pulled out of Brussels,
though the
fund remained ready to resume talks. "The ball is very much in Greece's
court
right now," he said.
Standard & Poor's lowered the rating of Greece's
biggest four banks on
Friday, June 19, two days after cutting its already deep-junk rating
for Greek
bonds. "The downgrade reflects our view that Greek banks will likely
default
within the next 12 months in the absence of an agreement between the
Greek
government and its official creditors while the end of the extension of
the
current program is approaching," the ratings agency said.
What consequences will the European Union face in case
of default? The
organization will have to admit the fact of failure to solve the
problem. June
30 is a special date for Greece and the EU. The eurozone portion of
Greece's
245 billion euro ($275.6 billion) bailout expires June 30, the same day
it faces
a 1.6 billion euro payment to the IMF -- which it won't be able to make
without a new aid transfer. So far the attempts to bail Greece out
ended up in
failure: Greece is facing a default, the European Union urgently called
a
summit and the prospects for the eurozone itself are uncertain.
Greece's central
bank warned Wednesday, June 17, that failure to clinch a deal with
international creditors on desperately needed funding could lead the
country
into an "uncontrollable crisis." "A manageable debt crisis, as the one
that we
are currently addressing with the help of our partners, would snowball
into an
uncontrollable crisis, with great risks for the banking system and
financial
stability" if a deal doesn't come through, the report said. That could
bring a
deep recession, a dramatic decline in income levels, an exponential
rise in
unemployment and a collapse of all that the Greek economy has achieved
over
the years of its EU, and especially its euro area, membership, the
report
added.
Even if the report prepared by the Greek Central Bank is
an attempt to
exert pressure on the European Commission, the European Central Bank
and
the International Monetary Fund the situation is still really grave.
Jeffrey Sachs, Director, Earth Institute at Columbia
University, believes
that Europe's demands -- ostensibly aimed at ensuring that Greece can
service
its foreign debt -- are petulant, naive and fundamentally
self-destructive. In
rejecting them, the Greeks are not playing games; they are trying to
stay alive.
According to him, "Conditions in Greece today are reminiscent of those
in
Germany in 1933. Of course, the European Union need not fear the rise
of a
Greek Hitler, not only because it could easily crush such a regime, but
also --
and more importantly -- because Greece's democracy has proved
impressively
mature throughout the crisis. But there is something that the EU should
fear:
destitution within its borders and the pernicious consequences for the
continent's politics and society." The American economist comes to the
conclusion that "Unfortunately, the continent remains split along
tribal lines.
Germans, Finns, Slovaks and Dutch -- among others -- have no time for
the
suffering of Greeks. Their political leaders tend to their own, not to
Europe in
any true sense. Relief for Greece is an especially fraught issue in
countries
where far-right parties are on the rise or center-right governments
face popular
left-wing opposition ".
Summing it all up here's what we have: about 250 billion
euros have gone
down the drain, the collapse of the eurozone is looming and a ghost of
a new
Hitler appears to show up at the horizon. It's no better at the
"eastern front."
In the run-up to the EU June 25-26 summit, Die Welt reported
that Europe may face huge losses if the anti-Russian sanctions
continue. The
European Union could lose up to 100 billion euros ($114 billion) due to
the
anti-Russian sanctions if things remain unchanged, a study by the
Austrian
Institute of Economic Research (WIFO) revealed Friday, June 19. Die
Welt newspaper reported that the research, conducted exclusively
for the
Leading European Newspaper Alliance (LENA), considered the worst-case
scenario, if the sanctions remain in place. "If the situation does not
change
fundamentally, our most pessimistic scenario will come true ", one of
the
research authors Oliver Fritz was quoted as saying by Die Welt.
According
to
the
calculations,
the
current
political
situation
can also affect
over 2 million EU jobs because of the declining exports. In contrast to
the
analysts' forecast, the European Commission said that the losses
incurred by
the European Union were "relatively small and manageable," the
newspaper
points out.[1]
According to Die Welt, the conclusions of the
Austrian
Institute are much more pessimistic than the estimates made public by
the
European Commission which says that the damage from the sanctions war
is
insignificant and easy to make up for. The German newspaper believes
that the
European Commission makes a short-term forecast while WIFO experts take
a look into a far more distant future.
According to WIFO's assessment, Germany will shoulder
the main burden.
A total of 500,000 jobs are under the threat of liquidation in Germany
now.
The German economy will lose 27 billion euros and its GDP will contract
by
1% in the coming years, according to experts' estimates. Italy will
lose over
200,000 jobs and 0.9% of GDP while France's losses will amount to
150,000
jobs and 0.5% of GDP. Poland, Estonia and Spain will suffer too.
Germany
has already lost 175,000 working places with 290,000 more to be lost if
the
sanctions war continues. The unemployment rate may increase by 185,000
in
Poland, 135,000 in Italy, 115,000 in Spain, 95,000 in France, 80,000 in
Great
Britain and 75,000 in Estonia. Together with Switzerland, the European
Union
has already lost 950,000 working places. With the sanctions in force,
unemployment will increase by 1.46 million.
These facts prove that the European Union faces the
system's political and
economic crisis with its leaders unable to control the situation. Many
far-sighted and sober-minded European politicians and businessmen have
set
eyes on the East. The discussions at the Saint-Petersburg's event prove
this fact
too.
(To be continued)
Note
1. Die Welt, 06. 19. 2015

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