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How the World Works QUOTES

21 " So you could say that one alternative to the free market system is the one we already have, because we often don’t rely on the market where powerful interests would be damaged. Our actual economic policy is a mixture of protectionist, interventionist, free-market and liberal measures. And it’s directed primarily to the needs of those who implement social policy, who are mostly the wealthy and the powerful. For example, the US has always had an active state industrial policy, just like every other industrial country. It’s been understood that a system of private enterprise can survive only if there is extensive government intervention. It’s needed to regulate disorderly markets and protect private capital from the destructive effects of the market system, and to organize a public subsidy for targeting advanced sectors of industry, etc. But nobody called it industrial policy, because for half a century it has been masked within the Pentagon system. Internationally, the Pentagon was an intervention force, but domestically it was a method by which the government could coordinate the private economy, provide welfare to major corporations, subsidize them, arrange the flow of taxpayer money to research and development, provide a state-guaranteed market for excess production, target advanced industries for development, etc. Just about every successful and flourishing aspect of the US economy has relied on this kind of government involvement. "

Noam Chomsky , How the World Works

22 " The Iran/Contra cover-up The major elements of the Iran/Contra story were well known long before the 1986 exposures, apart from one fact: that the sale of arms to Iran via Israel and the illegal Contra war run out of Ollie North’s White House office were connected. The shipment of arms to Iran through Israel didn’t begin in 1985, when the congressional inquiry and the special prosecutor pick up the story. It began almost immediately after the fall of the Shah in 1979. By 1982, it was public knowledge that Israel was providing a large part of the arms for Iran—you could read it on the front page of the New York Times. In February 1982, the main Israeli figures whose names later appeared in the Iran/Contra hearings appeared on BBC television [the British Broadcasting Company, Britain’s national broadcasting service] and described how they had helped organize an arms flow to the Khomeini regime. In October 1982, the Israeli ambassador to the US stated publicly that Israel was sending arms to the Khomeini regime, “with the cooperation of the United States…at almost the highest level.” The high Israeli officials involved also gave the reasons: to establish links with elements of the military in Iran who might overthrow the regime, restoring the arrangements that prevailed under the Shah—standard operating procedure. As for the Contra war, the basic facts of the illegal North-CIA operations were known by 1985 (over a year before the story broke, when a US supply plane was shot down and a US agent, Eugene Hasenfus, was captured). The media simply chose to look the other way. So what finally generated the Iran/Contra scandal? A moment came when it was just impossible to suppress it any longer. When Hasenfus was shot down in Nicaragua while flying arms to the Contras for the CIA, and the Lebanese press reported that the US National Security Adviser was handing out Bibles and chocolate cakes in Teheran, the story just couldn’t be kept under wraps. After that, the connection between the two well-known stories emerged. We then move to the next phase: damage control. That’s what the follow-up was about. For more on all of this, see my Fateful Triangle (1983), Turning the Tide (1985), and Culture of Terrorism (1987). "

Noam Chomsky , How the World Works

23 " Now let’s turn to the other extreme, to the doves. The leading dove was undoubtedly George Kennan, who headed the State Department planning staff until 1950, when he was replaced by Nitze—Kennan’s office, incidentally, was responsible for the Gehlen network. Kennan was one of the most intelligent and lucid of US planners, and a major figure in shaping the postwar world. His writings are an extremely interesting illustration of the dovish position. One document to look at if you want to understand your country is Policy Planning Study 23, written by Kennan for the State Department planning staff in 1948. Here’s some of what it says: We have about 50% of the world’s wealth but only 6.3% of its population....In this situation, we cannot fail to be the object of envy and resentment. Our real task in the coming period is to devise a pattern of relationships which will permit us to maintain this position of disparity....To do so, we will have to dispense with all sentimentality and daydreaming; and our attention will have to be concentrated everywhere on our immediate national objectives....We should cease to talk about vague and...unreal objectives such as human rights, the raising of the living standards, and democratization. The day is not far off when we are going to have to deal in straight power concepts. The less we are then hampered by idealistic slogans, the better. PPS 23 was, of course, a top-secret document. To pacify the public, it was necessary to trumpet the “idealistic slogans” (as is still being done constantly), but here planners were talking to one another. "

Noam Chomsky , How the World Works

24 " A smaller, deterrent force could have been kept in place long enough for the sanctions to have had a significant effect; an army of half a million couldn’t. The purpose of the quick military build-up was to ward off the danger that Iraq might be forced out of Kuwait by peaceful means. Why was a diplomatic resolution so unattractive? Within a few weeks after the invasion of Kuwait on August 2, the basic outlines for a possible political settlement were becoming clear. Security Council Resolution 660, calling for Iraq’s withdrawal from Kuwait, also called for simultaneous negotiations of border issues. By mid-August, the National Security Council considered an Iraqi proposal to withdraw from Kuwait in that context. There appear to have been two issues: first, Iraqi access to the Gulf, which would have entailed a lease or other control over two uninhabited mudflats assigned to Kuwait by Britain in its imperial settlement (which had left Iraq virtually landlocked); second, resolution of a dispute over an oil field that extended two miles into Kuwait over an unsettled border. The US flatly rejected the proposal, or any negotiations. On August 22, without revealing these facts about the Iraqi initiative (which it apparently knew), the New York Times reported that the Bush administration was determined to block the “diplomatic track” for fear that it might “defuse the crisis” in very much this manner. (The basic facts were published a week later by the Long Island daily Newsday, but the media largely kept their silence.) "

Noam Chomsky , How the World Works