Random Chomsky Quotes  

First, on Iraq from a recent piece in the Washington Post.

Arlington, Va.: Why do you think the US went to war against Iraq?

Noam Chomsky: Iraq has the second largest oil reserves in the world, it is right in the midst of the major energy reserves in the world. Its been a primary goal of US policy since World War II (like Britain before it) to control what the State Department called "a stupendous source of strategic power" and one of the greatest material prizes in history. Establishing a client state in Iraq would significantly enhance that strategic power, a matter of great significance for the future. As Zbigniew Brzezinski observed, it would provide the US with "critical leverage" of its European and Asian rivals, a conception with roots in early post-war planning. These are substantial reasons for aggression -- not unlike those of the British when they invaded and occupied Iraq over 80 years earlier, at the dawn of the oil age.

And second, from a recent article at ZMag (via Bernard Rooney) on claims of "failure of US policy in the middle east" (I don't really have a view on the amount of influence the Israeli lobby has in Washington, though I tend to agree with Chomsky that many people overrate it - US actions in the middle east are on its own behalf and it doesn't seem valid to blame Israel for them - the interesting part for me was to see John Blair cited, author of "The Control of Oil").

ask the obvious question: for whom has policy been a failure for the past 60 years? The energy corporations? Hardly. They have made "profits beyond the dreams of avarice" (quoting John Blair, who directed the most important government inquiries into the industry, in the '70s), and still do, and the ME is their leading cash cow. Has it been a failure for US grand strategy based on control of what the State Department described 60 years ago as the "stupendous source of strategic power" of ME oil and the immense wealth from this unparalleled "material prize"? Hardly.

The US has substantially maintained control -- and the significant reverses, such as the overthrow of the Shah, were not the result of the initiatives of the Lobby. And as noted, the energy corporations prospered. Furthermore, those extraordinary successes had to overcome plenty of barriers: primarily, as elsewhere in the world, what internal documents call "radical nationalism," meaning independent nationalism. As elsewhere in the world, it's been convenient to phrase these concerns in terms of "defense against the USSR," but the pretext usually collapses quickly on inquiry, in the ME as elsewhere. And in fact the claim was conceded to be false, officially, shortly after the fall of the Berlin Wall, when Bush's National Security Strategy (1990) called for maintaining the forces aimed at the ME, where the serious "threats to our interests... could not be laid at the Kremlin's door" -- now lost as a pretext for pursuing about the same policies as before. And the same was true pretty much throughout the world.

That at once raises another question about the M-W thesis. What were "the Lobbies" that led to pursuing very similar policies throughout the world? Consider the year 1958, a very critical year in world affairs. In 1958, the Eisenhower administration identified the three leading challenges to the US as the ME, North Africa, and Indonesia -- all oil producers, all Islamic. North Africa was taken care of by Algerian (formal) independence. Indonesia and the were taken care of by Suharto's murderous slaughter (1965) and Israel's destruction of Arab secular nationalism (Nasser, 1967). In the ME, that established the close US-Israeli alliance and confirmed the judgment of US intelligence in 1958 that a "logical corollary" of opposition to "radical nationalism" (meaning, secular independent nationalism) is "support for Israel" as the one reliable US base in the region (along with Turkey, which entered into close relations with Israel in the same year). Suharto's coup aroused virtual euphoria, and he remained "our kind of guy" (as the Clinton administration called him) until he could no longer keep control in 1998, through a hideous record that compares well with Saddam Hussein -- who was also "our kind of guy" until he disobeyed orders in 1990. What was the Indonesia Lobby? The Saddam Lobby? And the question generalizes around the world. Unless these questions are faced, the issue (1) cannot be seriously addressed.

When we do investigate (1), we find that US policies in the ME are quite similar to those pursued elsewhere in the world, and have been a remarkable success, in the face of many difficulties: 60 years is a long time for planning success. It's true that Bush II has weakened the US position, not only in the ME, but that's an entirely separate matter.

I'll also add a quote from Warren Buffett (via Guambat Stew) who I like for the same reason I like Chomsky - he tells the truth in simple, plain English that anyone should be able to understand if they don't have ideological blinkers on.

Particularly expensive is the recent pandemic of profit arrangements under which Helpers receive large portions of the winnings when they are smart or lucky, and leave family members with all of the losses – and large fixed fees to boot – when the Helpers are dumb or unlucky (or occasionally crooked). A sufficient number of arrangements like this – heads, the Helper takes much of the winnings; tails, the Gotrocks lose and pay dearly for the privilege of doing so – may make it more accurate to call the family the Hadrocks.

Today, in fact, the family’s frictional costs of all sorts may well amount to 20% of the earnings of American business. In other words, the burden of paying Helpers may cause American equity investors, overall, to earn only 80% or so of what they would earn if they just sat still and listened to no one.

Long ago, Sir Isaac Newton gave us three laws of motion, which were the work of genius. But Sir Isaac’s talents didn’t extend to investing: He lost a bundle in the South Sea Bubble, explaining later, “I can calculate the movement of the stars, but not the madness of men.” If he had not been traumatized by this loss, Sir Isaac might well have gone on to discover the Fourth Law of Motion: For investors as a whole, returns decrease as motion increases.

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Here’s the answer to the question posed at the beginning of this section: To get very specific, the Dow increased from 65.73 to 11,497.12 in the 20th century, and that amounts to a gain of 5.3% compounded annually.