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Dr Mahathir Mohamad PM of Malaysia's Speech in Full to the OIC

Thursday October 16, 2003
Dr Mahathir opens 10th OIC Summit


Dr Mahathir addresses the 10th Summit of the OIC in Putrajaya. - Starpix
Speech by Prime Minister Datuk Seri Dr Mahathir Mohamad at the opening of the 10th Session of the Islamic Summit Conference on Oct 16, 2003

ALHAMDULILLAH, All Praise be to Allah, by whose Grace and Blessings we, the leaders of the Organisation of the Islamic Conference (OIC) countries are gathered here today to confer and hopefully to plot a course for the future of Islam and the Muslim ummah worldwide.

On behalf of the Government and the people of many races and religions of Malaysia, may I extend a warm welcome to all and everyone to this 10th Session of the Islamic Summit Conference in Putrajaya, Malaysia’s administrative capital.

It is indeed a great honour for Malaysia to host this Session and to assume the chairmanship of the OIC. I thank the members for their confidence in Malaysia’s chairmanship.

May I also take this opportunity to pay a special tribute to the State of Qatar, in particular His Highness Shaikh Hamad Bin Khalifa AI-Thani, the Emir of the State of Qatar, for his outstanding stewardship of our organisation over the past three years.

As host, Malaysia is gratified at the high level of participation from member countries. This clearly demonstrates our continued and abiding faith in, and commitment to our organisation and our collective wish and determination to strengthen our role for the dignity and benefit of the ummah.

I would also like to welcome the leaders and representatives of the many countries who wish to become observers at this meeting because of their substantial Muslim population. Whether they are Muslims or not, their presence at this meeting will help towards greater understanding of Islam and the Muslims, thus helping to disprove the perception of Islam as a religion of backwardness and terror.

The whole world is looking at us. Certainly 1.3 billion Muslims, one-sixth of the world’s population are placing their hopes in us, in this meeting, even though they may be cynical about our will and capacity to even decide to restore the honour of Islam and the Muslims, much less to free their brothers and sisters from the oppression and humiliation from which they suffer today.

I will not enumerate the instances of our humiliation and oppression, nor will I once again condemn our detractors and oppressors. It would be an exercise in futility because they are not going to change their attitudes just because we condemn them. If we are to recover our dignity and that of Islam, our religion, it is we who must decide, it is we who must act.

To begin with, the governments of all the Muslim countries can close ranks and have a common stand if not on all issues, at least on some major ones, such as on Palestine. We are all Muslims. We are all oppressed. We are all being humiliated. But we who have been raised by Allah above our fellow Muslims to rule our countries have never really tried to act in concert in order to exhibit at our level the brotherhood and unity that Islam enjoins upon us.

But not only are our governments divided, the Muslim ummah is also divided, and divided again and again. Over the last 1,400 years the interpreters of Islam, the learned ones, the ulamas have interpreted and reinterpreted the single Islamic religion brought by Prophet Muhammad S.A.W, so differently that now we have a thousand religions which are often so much at odds with one another that we often fight and kill each other.

From being a single ummah we have allowed ourselves to be divided into numerous sects, mazhabs and tarikats, each more concerned with claiming to be the true Islam than our oneness as the Islamic ummah. We fail to notice that our detractors and enemies do not care whether we are true Muslims or not. To them we are all Muslims, followers of a religion and a Prophet whom they declare promotes terrorism, and we are all their sworn enemies. They will attack and kill us, invade our lands, bring down our governments whether we are Sunnis or Syiahs, Alawait or Druse or whatever. And we aid and abet them by attacking and weakening each other, and sometimes by doing their bidding, acting as their proxies to attack fellow Muslims. We try to bring down our governments through violence, succeeding to weaken and impoverish our countries.

We ignore entirely and we continue to ignore the Islamic injunction to unite and to be brothers to each other, we the governments of the Islamic countries and the ummah.

But this is not all that we ignore about the teachings of Islam. We are enjoined to Read, Iqraq, i.e. to acquire knowledge. The early Muslims took this to mean translating and studying the works of the Greeks and other scholars before Islam. And these Muslim scholars added to the body of knowledge through their own studies.

The early Muslims produced great mathematicians and scientists, scholars, physicians and astronomers etc. and they excelled in all the fields of knowledge of their times, besides studying and practising their own religion of Islam. As a result the Muslims were able to develop and extract wealth from their lands and through their world trade, able to strengthen their defences, protect their people and give them the Islamic way of life, Addin, as prescribed by Islam. At the time the Europeans of the Middle Ages were still superstitious and backward, the enlightened Muslims had already built a great Muslim civilisation, respected and powerful, more than able to compete with the rest of the world and able to protect the ummah from foreign aggression. The Europeans had to kneel at the feet of Muslim scholars in order to access their own scholastic heritage.

The Muslims were lead by great leaders like Abdul Rahman III, AI-Mansur, Salah El Din AI Ayubi and others who took to the battlefields at the head of their forces to protect Muslim land and the ummah.

But halfway through the building of the great Islamic civilisation came new interpreters of Islam who taught that acquisition of knowledge by Muslims meant only the study of Islamic theology. The study of science, medicine etc. was discouraged.

Intellectually the Muslims began to regress. With intellectual regression the great Muslim civilisation began to falter and wither. But for the emergence of the Ottoman warriors, Muslim civilisation would have disappeared with the fall of Granada in 1492.

The early successes of the Ottomans were not accompanied by an intellectual renaissance. Instead they became more and more preoccupied with minor issues such as whether tight trousers and peak caps were Islamic, whether printing machines should be allowed or electricity used to light mosques. The Industrial Revolution was totally missed by the Muslims. And the regression continued until the British and French instigated rebellion against Turkish rule brought about the downfall of the Ottomans, the last Muslim world power and replaced it with European colonies and not independent states as promised. It was only after World War II that these colonies became independent.

Apart from the new nation-states we also accepted the western democratic system. This also divided us because of the political parties and groups that we form, some of which claim Islam for themselves, reject the Islam of other parties and refuse to accept the results of the practice of democracy if they fail to gain power for themselves. They resort to violence, thus destabilising and weakening Muslim countries.

With all these developments over the centuries the ummah and the Muslim civilisation became so weak that at one time there was not a single Muslim country which was not colonised or hegemonised by the Europeans. But regaining independence did not help to strengthen the Muslims. Their states were weak and badly administered, constantly in a state of turmoil. The Europeans could do what they liked with Muslim territories. It is not surprising that they should excise Muslim land to create the state of Israel to solve their Jewish problem. Divided, the Muslims could do nothing effective to stop the Balfour and Zionist transgression.

Some would have us believe that, despite all these, our life is better than that of our detractors. Some believe that poverty is Islamic, sufferings and being oppressed are Islamic. This world is not for us. Ours are the joys of heaven in the afterlife. All that we have to do is to perform certain rituals, wear certain garments and put up a certain appearance. Our weakness, our backwardness and our inability to help our brothers and sisters who are being oppressed are part of the Will of Allah, the sufferings that we must endure before enjoying heaven in the hereafter. We must accept this fate that befalls us. We need not do anything. We can do nothing against the Will of Allah.

But is it true that it is the Will of Allah and that we can and should do nothing? Allah has said in Surah Ar-Ra’d verse 11 that He will not change the fate of a community until the community has tried to change its fate itself.

The early Muslims were as oppressed as we are presently. But after their sincere and determined efforts to help themselves in accordance with the teachings of Islam, Allah had helped them to defeat their enemies and to create a great and powerful Muslim civilisation. But what effort have we made especially with the resources that He has endowed us with.

We are now 1.3 billion strong. We have the biggest oil reserve in the world. We have great wealth. We are not as ignorant as the Jahilliah who embraced Islam. We are familiar with the workings of the world’s economy and finances. We control 50 out of the 180 countries in the world. Our votes can make or break international organisations. Yet we seem more helpless than the small number of Jahilliah converts who accepted the Prophet as their leader. Why? Is it because of Allah’s will or is it because we have interpreted our religion wrongly, or failed to abide by the correct teachings of our religion, or done the wrong things?

We are enjoined by our religion to prepare for the defence of the ummah. Unfortunately we stress not defence but the weapons of the time of the Prophet. Those weapons and horses cannot help to defend us any more. We need guns and rockets, bombs and warplanes, tanks and warships for our defence. But because we discouraged the learning of science and mathematics etc as giving no merit for the akhirat, today we have no capacity to produce our own weapons for our defence. We have to buy our weapons from our detractors and enemies. This is what comes from the superficial interpretation of the Quran, stressing not the substance of the Prophet’s sunnah and the Quran’s injunctions but rather the form, the manner and the means used in the 1st Century of the Hijrah. And it is the same with the other teachings of Islam. We are more concerned with the forms rather than the substance of the words of Allah and adhering only to the literal interpretation of the traditions of the Prophet.

We may want to recreate the first century of the Hijrah, the way of life in those times, in order to practise what we think to be the true Islamic way of life. But we will not be allowed to do so. Our detractors and enemies will take advantage of the resulting backwardness and weakness in order to dominate us. Islam is not just for the 7th Century A.D. Islam is for all times. And times have changed. Whether we like it or not we have to change, not by changing our religion but by applying its teachings in the context of a world that is radically different from that of the first century of the Hijrah. Islam is not wrong but the interpretations by our scholars, who are not prophets even though they may be very learned, can be wrong. We have a need to go back to the fundamental teachings of Islam to find out whether we are indeed believing in and practising the Islam that the Prophet preached. It cannot be that we are all practising the correct and true Islam when our beliefs are so different from one another.

Today we, the whole Muslim ummah are treated with contempt and dishonour. Our religion is denigrated. Our holy places desecrated. Our countries are occupied. Our people starved and killed.

None of our countries are truly independent. We are under pressure to conform to our oppressors’ wishes about how we should behave, how we should govern our lands, how we should think even.

Today if they want to raid our country, kill our people, destroy our villages and towns, there is nothing substantial that we can do. Is it Islam which has caused all these? Or is it that we have failed to do our duty according to our religion?

Our only reaction is to become more and more angry. Angry people cannot think properly. And so we find some of our people reacting irrationally. They launch their own attacks, killing just about anybody including fellow Muslims to vent their anger and frustration. Their governments can do nothing to stop them. The enemy retaliates and puts more pressure on the governments. And the governments have no choice but to give in, to accept the directions of the enemy, literally to give up their independence of action.

With this their people and the ummah become angrier and turn against their own governments. Every attempt at a peaceful solution is sabotaged by more indiscriminate attacks calculated to anger the enemy and prevent any peaceful settlement. But the attacks solve nothing. The Muslims simply get more oppressed.

There is a feeling of hopelessness among the Muslim countries and their people. They feel that they can do nothing right. They believe that things can only get worse. The Muslims will forever be oppressed and dominated by the Europeans and the Jews. They will forever be poor, backward and weak. Some believe, as I have said, this is the Will of Allah, that the proper state of the Muslims is to be poor and oppressed in this world.

But is it true that we should do and can do nothing for ourselves? Is it true that 1.3 billion people can exert no power to save themselves from the humiliation and oppression inflicted upon them by a much smaller enemy? Can they only lash back blindly in anger? Is there no other way than to ask our young people to blow themselves up and kill people and invite the massacre of more of our own people?

It cannot be that there is no other way. 1.3 billion Muslims cannot be defeated by a few million Jews. There must be a way. And we can only find a way if we stop to think, to assess our weaknesses and our strength, to plan, to strategise and then to counter-attack. As Muslims we must seek guidance from the Al-Quran and the Sunnah of the Prophet. Surely the 23 years’ struggle of the Prophet can provide us with some guidance as to what we can and should do.

We know he and his early followers were oppressed by the Qhuraish. Did he launch retaliatory strikes? No. He was prepared to make strategic retreats. He sent his early followers to a Christian country and he himself later migrated to Madinah. There he gathered followers, built up his defence capability and ensured the security of his people. At Hudaibiyah he was prepared to accept an unfair treaty, against the wishes of his companions and followers. During the peace that followed he consolidated his strength and eventually he was able to enter Mecca and claim it for Islam. Even then he did not seek revenge. And the peoples of Mecca accepted Islam and many became his most powerful supporters, defending the Muslims against all their enemies.

That briefly is the story of the struggle of the Prophet. We talk so much about following the sunnah of the Prophet. We quote the instances and the traditions profusely. But we actually ignore all of them.

If we use the faculty to think that Allah has given us then we should know that we are acting irrationally. We fight without any objective, without any goal other than to hurt the enemy because they hurt us. Naively we expect them to surrender. We sacrifice lives unnecessarily, achieving nothing other than to attract more massive retaliation and humiliation.

It is surely time that we pause to think. But will this be wasting time? For well over half a century we have fought over Palestine. What have we achieved? Nothing. We are worse off than before. If we had paused to think then we could have devised a plan, a strategy that can win us final victory. Pausing and thinking calmly is not a waste of time. We have a need to make a strategic retreat and to calmly assess our situation.

We are actually very strong. 1.3 billion people cannot be simply wiped out. The Europeans killed six million Jews out of 12 million. But today the Jews rule this world by proxy. They get others to fight and die for them.

We may not be able to do that. We may not be able to unite all the 1.3 billion Muslims. We may not be able to get all the Muslim Governments to act in concert. But even if we can get a third of the ummah and a third of the Muslim states to act together, we can already do something. Remember that the Prophet did not have many followers when he went to Madinah. But he united the Ansars and the Muhajirins and eventually he became strong enough to defend Islam.

Apart from the partial unity that we need, we must take stock of our assets. I have already mentioned our numbers and our oil wealth. In today’s world we wield a lot of political, economic and financial clout, enough to make up for our weakness in military terms.

We also know that not all non-Muslims are against us. Some are well disposed towards us. Some even see our enemies as their enemies. Even among the Jews there are many who do not approve of what the Israelis are doing.

We must not antagonise everyone. We must win their hearts and minds. We must win them to our side not by begging for help from them but by the honourable way that we struggle to help ourselves. We must not strengthen the enemy by pushing everyone into their camps through irresponsible and unIslamic acts. Remember Salah El Din and the way he fought against the so-called Crusaders, King Richard of England in particular. Remember the considerateness of the Prophet to the enemies of Islam. We must do the same. It is winning the struggle that is important, not angry retaliation, not revenge.

We must build up our strength in every field, not just in armed might. Our countries must be stable and well administered, must be economically and financially strong, industrially competent and technologically advanced. This will take time, but it can be done and it will be time well spent. We are enjoined by our religion to be patient. Innallahamaasabirin. Obviously there is virtue in being patient.

But the defence of the ummah, the counter-attack, need not start only after we have put our houses in order. Even today we have sufficient assets to deploy against our detractors. It remains for us to identify them and to work out how to make use of them to stop the carnage caused by the enemy. This is entirely possible if we stop to think, to plan, to strategise and to take the first few critical steps. Even these few steps can yield positive results.

We know that the Jahilliah Arabs were given to feuding, to killing each other simply because they were from different tribes. The Prophet preached the brotherhood of Islam to them and they were able to overcome their hatred for each other, become united and helped towards the establishment of the great Muslim civilisation. Can we say that what the Jahilliah (the ignorant) could do we, the modern Muslims cannot do? If not all at least some of us can do. If not the renaissance of our great civilisation, at least ensuring the security of the ummah.

To do the things that are suggested will not even require all of us to give up our differences with each other. We need only to call a truce so we can act together in tackling only certain problems of common interests, the Palestine problem for example.

In any struggle, in any war, nothing is more important than concerted and coordinated action. A degree of discipline is all that is needed. The Prophet lost in Jabal Uhud because his forces broke rank. We know that, yet we are unwilling to discipline ourselves and to give up our irregular and uncoordinated actions. We need to be brave but not foolhardy. We need to think not just of our reward in the afterlife but also of the worldly results of our mission.

The Quran tells us that when the enemy sues for peace we must react positively. True the treaty offered is not favourable to us. But we can negotiate. The Prophet did, at Hudaibiyah. And in the end he triumphed.

I am aware that all these ideas will not be popular. Those who are angry would want to reject it out of hand. They would even want to silence anyone who makes or supports this line of action. They would want to send more young men and women to make the supreme sacrifice. But where will all these lead to? Certainly not victory. Over the past 50 years of fighting in Palestine we have not achieved any result. We have in fact worsened our situation.

The enemy will probably welcome these proposals and we will conclude that the promoters are working for the enemy. But think. We are up against a people who think. They survived 2000 years of pogroms not by hitting back, but by thinking. They invented and successfully promoted Socialism, Communism, human rights and democracy so that persecuting them would appear to be wrong, so they may enjoy equal rights with others. With these they have now gained control of the most powerful countries and they, this tiny community, have become a world power. We cannot fight them through brawn alone. We must use our brains also.

Of late because of their power and their apparent success they have become arrogant. And arrogant people, like angry people will make mistakes, will forget to think.

They are already beginning to make mistakes. And they will make more mistakes. There may be windows of opportunity for us now and in the future. We must seize these opportunities.

But to do so we must get our acts right. Rhetoric is good. It helps us to expose the wrongs perpetrated against us, perhaps win us some sympathy and support. It may strengthen our spirit, our will and resolve, to face the enemy.

We can and we should pray to Allah S.W.T. for in the end it is He who will determine whether we succeed or fail. We need His blessings and His help in our endeavours,

But it is how we act and what we do which will determine whether He would help us and give us victory or not. He has already said so in the Quran. Again Surah Ar-Ra’d verse 11.

As I said at the beginning, the whole world is looking at us, the whole Muslim ummah is placing their hopes in this conference of the leaders of Islamic nations. They expect us not just to vent our frustrations and anger, through words and gestures, not just to pray for Allah’s blessings. They expect us to do something, to act. We cannot say we cannot do anything, we the leaders of the Muslim nations. We cannot say we cannot unite even when faced with the destruction of our religion and the ummah.

We know we can. There are many things that we can do. There are many resources that we have at our disposal. What is needed is merely the will to do it, As Muslims, we must be grateful for the guidance of our religion, we must do what needs to be done, willingly and with determination. Allah has not raised us, the leaders, above the others so we may enjoy power for ourselves only. The power we wield is for our people, for the ummah, for Islam. We must have the will to make use of this power judiciously, prudently, concertedly. Insyaallah we will triumph in the end.

I pray to Allah that this 10th Conference of the OIC in Putrajaya, Malaysia, will give a new and positive direction to us, will be blessed with success by Him, Almighty Allah, Arahman, Arahirn.

September 1, 2010

Economists Haven't Got a Clue

Death By Globalism

By PAUL CRAIG ROBERTS

Have economists made themselves irrelevant?  If you have any doubts, have a look at the current issue of themagazine, International Economy, a slick publication endorsed by former Federal Reserve chairmen Paul Volcker and Alan Greenspan, by Jean-Claude Trichet, president of the European Central Bank, by former Secretary of State George Shultz, and by the New York Times and Washington Post, both of which declare the magazine to be “ahead of the curve.”

The main feature of the current issue is “The Great Stimulus Debate.” Is the Obama fiscal stimulus helping the economy or hindering it? 

Princeton economics professor and New York Times columnist Paul Krugman and Moody’s Analytics chief economist Mark Zandi represent the Keynesian view that government deficit spending is needed to lift the economy out of recession. Zandi declares that thanks to the fiscal stimulus, “The economy has made enormous progress since early 2009,” an opinion shared by the President’s Council of Economic Advisors and the Congressional Budget Office. 

The opposite view, associated with Harvard economics professor Robert Barro and with European  economists, such as Francesco Giavazzi and Marco Pagano and the European Central Bank, is that government budget surpluses achieved by cutting government spending spur the economy by reducing the ratio of debt to Gross Domestic Product. This is the “let them eat cake school of economics.”

Barro says that fiscal stimulus has no effect, because people anticipate the future tax increases implied by government deficits and increase their personal savings to offset the added government debt. Giavazzi and Pagano reason that since fiscal stimulus does not expand the economy, fiscal austerity consisting of higher taxes and reduced government spending could be the cure for unemployment.

If one overlooks the real world and the need of life for sustenance, one can become engrossed in this debate. However, the minute one looks out the window upon the world, one realizes that cutting Social Security, Medicare, Medicaid, food stamps, and housing subsidies when 15 million Americans have lost jobs, medical coverage, and homes is a certain path to death by starvation, curable diseases, and exposure, and the loss of the productive labor inputs from 15 million people. Although some proponents of this anti-Keynesian policy deny that it results in social upheaval, Gerald Celente’s observation is closer to the mark: “When people have nothing left to lose, they lose it.”

The Krugman Keynesian school is just as deluded.  Neither side in “The Great Stimulus Debate” has a clue that the problem for the U.S. is that a large chunk of U.S. GDP and the jobs, incomes, and careers associated with it, have been moved offshore and given to Chinese, Indians, and others with low wage rates. Profits have soared on Wall Street, while job prospects for the middle class have been eliminated.

The offshoring of American jobs resulted from (1) Wall Street pressures for “higher shareholder returns,” that is, for more profits, and from (2) no-think economists, such as the ones engaged in the debate over fiscal stimulus, who mistakenly associated globalism with free trade instead of with its antithesis--the pursuit of lowest factor cost abroad or absolute advantage, the opposite of comparative advantage, which is the basis for free trade theory. Even Krugman, who has some credentials as a trade theorist  has fallen for the equation of globalism with free trade.

As economists assume, incorrectly according to the latest trade theory by Ralph Gomory and William Baumol, that free trade is always mutually beneficial, economists have failed to examine the devastatingly harmful effects of offshoring. The more intelligent among them who point it out are dismissed as “protectionists.”  

The reason fiscal stimulus cannot rescue the U.S. economy has nothing to do with the difference between Barro and Krugman. It has to do with the fact that a large percentage of high-productivity, high-value-added jobs and the middle class incomes and careers associated with them have been given to foreigners. What used to be U.S. GDP is now Chinese, Indian, and other country GDP.

When the jobs have been shipped overseas, fiscal stimulus does not call workers back to work in order to meet the rising consumer demand. If fiscal stimulus has any effect, it stimulates employment in China and India.

The “let them eat cake school” is equally off the mark. As investment, research, development, etc., have been moved offshore, cutting entitlements simply drives the domestic population deeper in the ground. Americans cannot pay their mortgages, car payments, tuition, utility bills, or for that matter, any bill, based on Chinese and Indian pay scales. Therefore, Americans are priced out of the labor market and become dependencies of the federal budget. “Fiscal  consolidation” means writing off large numbers of humans.

During the Great Depression, many wage and salary earners were new members of the labor force arriving from family farms, where many parents and grandparents still supported themselves. When their city jobs disappeared, many could return to the farm. 

Today farming is in the hands of agri-business. There are no farms to which the unemployed can return. 

The “let them eat cake school” never mentions the one point in its favor.  The U.S., with all its huffed up power and importance, depends on the U.S. dollar as reserve currency. It is this role of the dollar that allows America to pay for its imports in its own currency. For a country whose trade is as unbalanced as  America’s, this privilege is what keeps the country afloat. 

The threats to the dollar’s role are the budget and trade deficits. Both are so large and have accumulated for so long that the prospect of making good on them has evaporated. As I have written for a number of years, the U.S. is so dependent on the dollar as reserve currency that it must have as its main policy goal to preserve that role. 

Otherwise, the U.S., an import-dependent country, will be unable to pay for its excess of imports over its exports.

“Fiscal consolidation,” the new term for austerity, could save the dollar. However, unless starvation, homelessness and social upheaval are the goals, the austerity must fall on the military budget. America cannot afford its multi-trillion dollar wars that serve only to enrich those invested in the armaments industries. The U.S. cannot afford the neoconservative dream of world hegemony and a conquered Middle East open to Israeli colonization. 

Is anyone surprised that not a single proponent of the “let them eat cake school” mentions cutting military spending?  Entitlements, despite the fact that they are paid for by earmarked taxes and have been in surplus since the Reagan administration, are always what economists put on the chopping bloc. 

Where do the two schools stand on inflation vs. deflation? We don’t have to worry. Martin Feldstein, one of America’s pre-eminent economist says: “The good news is that investors should worry about neither.” His explanation epitomizes the insouciance of American economists. 

Feldstein says that there cannot be inflation because of the high rate of unemployment and the low rate of capacity utilization. Thus, “there is little upward pressure on wages and prices in the United States.” Moreover, “the recent rise in the value of the dollar relative to the euro and British pound helps by reducing import costs.”

As for deflation, no risk there either. The huge deficits prevent deflation, “so the good news is that the possibility of significant inflation or deflation during the next few years is low on the list of economic risks faced by the U.S. economy and by financial investors.”

What we have in front of us is an unaware economics profession. There may be some initial period of deflation as stock and housing prices decline with the economy, which is headed down and not up.  The deflation will be short lived, because as the government’s deficit rises with the declining economy, the prospect of financing a $2 trillion annual deficit evaporates once individual investors have completed their flight from the stock market into “safe” government bonds, once the hyped Greek, Spanish, and Irish crises have driven investors out of euros into dollars, and once the banks’ excess reserves created by the bailout have been used up in the purchase of Treasuries.

Then what finances the deficit? Don’t look for an answer from either side of The Great Stimulus Debate. They haven’t a clue despite the fact that the answer is obvious. 

The Federal Reserve will monetize the federal government deficit. The result will be high inflation, possibly hyper-inflation and high unemployment simultaneously. 

The no-think economics establishment has no policy response for economic armageddon, assuming they are even capable of recognizing it. 

Economists who have spent their professional lives rationalizing “globalism” as good for America have no idea of the disaster that they have wrought.

Paul Craig Roberts was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury.  The economic  critique in this column is powerfully laid out in his latest book, http://www.easycartsecure.com/CounterPunch/CounterPunch_Books.html - HOW THE ECONOMY WAS LOST ,  which has just been published by CounterPunch/AK Press. He can be reached at: mailto:PaulCraigRoberts@yahoo.com - PaulCraigRoberts@yahoo.com

http://www.independent.co.uk/news/world/asia/guerrilla-of-arabia-how-one-of-britains-most-brilliant-military-tacticians-created-the-talibans-battle-strategy-2081555.html - Guerrilla of Arabia: How one of Britain's most brilliant military tacticians created the Taliban's battle strategy

http://www.alternet.org/story/148194/how_right-wing_billionaires_and_business_propaganda_got_us_into_the_economic_mess_of_the_century?page=entire - How Right-Wing Billionaires and Business Propagandists Got Us into the Economic Mess of the Century

http://www.alternet.org/authors/10621/ - Stories by Pepe Escobar

http://www.vdare.com/roberts/101227_2011.htm - 2011: "Dissent Is What Rescues Democracy"