i Cooperative Capitalism ii iii Cooperative Capitalism ___________________________________________________ A Blueprint for Global Peace and Prosperity 2 nd Edition Expanded and Updated _________________ J.W. Smith Institute for Economic Democracy Press iv Copyright © 2005 by J.W. Smith We believe all ideas should have maximum exposure. Thus for any properly cited individual quotation up to 500 words no permission is necessary. By expanding upon parts of this manuscript, or nesting your work within the framework of this in-depth study, you can present a clearer picture while producing a book in six months as opposed to 6-to-10 years. Permission will be granted by the author (ied@ied.info), and the manuscript will be sent by email, to those who present a serious and scholarly outline of a proposed book utilizing this foundation. The authors, The Institute for Economic Democracy, and their officers and supporters, specifically retain full rights to this work and other published research so that others may use it, correct it, expand upon it, and produce an ever-more powerful and workable plan for sustainable world development and elimination of poverty. Published by: The Institute for Economic Democracy www.ied.info/ ied@ied.info Smith, J.W., 1930- Cooperative Capitalism: A Blueprint for Global Peace and Prosperity / J.W. Smith 2 nd ed. Includes bibliographical references and Index. ISBN 0-9624423-8-9 (hbk) ISBN 0-9624423-9-7 (pbk) 1. Free enterprise—History. 2. Free trade—History. 3. Capitalism—History. 4. Democracy—History. 5. International economic relations—History. I. Title Quality books provided the above for an earlier edition 6. Henry George 7. Public commons 8. World Federation Book cover designed by John Cole, www.johncolegrf.com This book is printed on acid free paper. v Table of Contents INTRODUCTION 1 Personal Property Rights, Community Property Rights, and Private Property Rights 2 A Very Short History on the Few Claiming the Rights of the Many 3 Subtle-Monopolization is a Remnant of Feudal Exclusive Property Rights 9 SECTION A 16 INTERNAL TRADE 16 WASTED WEALTH THAT THE DEVELOPING WORLD MUST AVOID 16 1.HENRY GEORGE’S CONCEPT OF A MODERN LAND COMMONS 17 2.THE EFFICIENCY OF A MODERN TECHNOLOGY COMMONS THROUGH APPLYING HENRY GEORGE’S PRINCIPLE OF CONDITIONAL TITLES TO NATURE’S WEALTH 21 3.THE EFFICIENCY OF A MODERN MONEY COMMONS 23 Creating a Constant-Value Currency 28 4. SUBSIDIARY SUBTLE MONOPOLIES WITHIN THE PRIMARY MONOPOLIES OF LAND, TECHNOLOGY AND MONEY 31 5. RECLAIMING THE INFORMATION COMMONS 36 Eliminating Political Corruption by the Wealthy and Powerful 38 A Modern Communication Commons converts wasted Time to Free Time 38 An unseen and unfelt Money Transaction Tax 39 That Population can be stabilized without Coercion has been proven 40 SECTION B 42 EXTERNAL TRADE 42 A PEACEFUL AND PROSPEROUS WORLD 42 6. REFOCUSING ECONOMIC THOUGHT 43 Fair and Equal Trade as opposed to Unequal “Free” Trade 44 Plunder-by-Trade has a Long History 45 Never did a Nation develop under Adam Smith Free Trade 47 True Freedom, is based on Economic Freedom 50 America chose not to Support the World’s Break for Freedom 52 History supports Friedrich List, not Adam Smith 55 7. HOW A “FREE” PEOPLE WITH A “FREE” PRESS ARE PROPAGANDIZED 57 The CIA’s Mighty Wurlitzer Suppressing the World’s break for Freedom 58 vi Corporate-Funded Think-Tanks Backed the CIA’s Mighty Wurlitzer 61 Academia and the Media cannot escape an established Social-Control- Paradigm (Framework of Orientation) 64 Death Squads: Rising Democratic Leaders must be eliminated 66 Strategies-of-Tension (“Framework of Orientation”) Controlling a “Free Press” and a “free” Nation 67 The World was Breaking Free 69 Controlling Elections in the shattered Empires of Europe and Asia 71 Destabilizing Dissenting Political Groups 73 Professors, Intellectuals, and the Masses are locked into Protecting Empire 79 A Few of the Many Mighty Wurlitzers in History 80 8. THE PERIPHERY OF EMPIRE COULD NOT BE PERMITTED THEIR FREEDOM 83 The Korean War: A Strategy-of-Tension for Worldwide Suppression of Breaks for Freedom 95 9. A LARGE SEGMENT OF THE WORLD ALMOST BROKE FREE 100 The Soviet Federation could not recover from the Disaster of World War II 102 The Cold War Warped the Soviet Economy 103 The Fear was losing Control of Resources and the Wealth-Producing- Process 104 The Fiction of Western Efforts to rebuild Russia 109 The Plan was to take the Soviet Federation Out 110 Afghanistan, the Final Straw that Collapsed the Soviet Federation 112 The ‘Official’ Enemy is now Terrorism 114 10. A VIABLE YUGOSLAVIA COULD NOT BE PERMITTED 116 The CIA’s Mighty Wurlitzer Turned Reality on its Head 119 The Reality the Mighty Wurlitzer was Hiding 120 The Wealth moves to the Powerful West 122 The Huge Gains to Imperial-Centers-of-Capital 125 Financial and Economic Warfare 126 Getting Indigestion Assimilating New Allies 131 Allied Imperial-Centers-of-Capital Gaining Wealth 133 11. THE IMF/WORLD BANK/GATT/NAFTA/WTO/ MAI/GATS/FTAA MILITARY COLOSSUS 142 More Financial Warfare 148 The Economic Insanity of Capital Destroying Capital 152 Practicing Economic Policies Opposite that Imposed Upon the Undeveloped World 154 Sincerely Sharing the Wealth-Producing-Process 156 12. CONCLUSION: DEMOCRATIC-COOPERATIVE- (SUPEREFFICIENT)-CAPITALISM 162 Powerful Nations will not willingly give up Their Superior Rights 166 vii These are Historic Moments 168 Restructuring to an efficient Internal Economy 170 Democratic-Cooperative-(Superefficient)-Capitalism, Restructuring all Societies to a Life of Peace & Leisure 170 ABOUT THE AUTHOR 210 viii Acknowledgments I wish to thank the many great authors and reporters cited who have laid out reality so clearly. Without their dedication to truth, there would have been no way to find one’s way through the maze of misinformation. The classics of Petr Kropotkin and Friedrich List were crucial for understanding the early history of monopoly capitalism. Ralph Borsodi’s insights were crucial for understanding money. Later authors whose insights into current events were invaluable to me are: Michel Chossudovsky, Jared Israel, William Blum, Sally Covington, Jared Diamond, James Fallows, Jeff Faux, William Greider, Susan George, Sean Gervasi, Michael Kettle, Philip Knightley, Mark Lane, Christopher Layne, John Loftus, Arjun Makhijani, Milton Mayer, Ralph McGehee, William McNeill, Seymour Melman, Yousai Mohammad, George Monbiot, Michael Parenti, L. Fletcher Prouty, Ellen Schrecker, John Stockwell, Lester Thurow, and William Appleman Williams. There are many more, too numerous to mention, and I thank them also. Ray Miklas and Pete Gannon (stuffguys.com) kept my computers running. Special thanks go to Anup Shah, Bernie Maopolski, William Kötke, John Bunzl, and Jeff and Diana Jewell. All worked hard for its timely release. Special thanks go to Mieczyslaw Dobija’s research on money originating as an accounting unit of productive labor. Special mention must be made of Mochamad Effendi Aboed of Indonesia and Professor Radh Achuthan. Professor Michael Rivage-Seul, Cosmas Bahali of Tanganyika, and reporter Dmitry Yanovich from Belarus are valuable members of our team. I owe a deep debt to Professor Robert Blain of the Southern Illinois University, Professor Glen T. Martin of International Philosophers for Peace, and Professor Walter Davis of Kent State University. Phil Hawes, Keith McHenry (Food Not Bombs), Alanna Hartzok, Steve Zarlenga (Lost Science of Money), Professor Francois Muyumba, Professor Mustafa Abergasem, Joseph Gimba, John Leonard, Michael Mityok, David Aronson, and at least a 100 more around the world have provided great support. I sincerely thank all for their input. I alone remain responsible for any errors that remain. ix Acronyms Central Intelligence Agency (CIA) Coordinating Committee for Multilateral Export Controls (Cocom) Counterintelligence Program (COINTELPRO) European Community (EC) Federal Bureau of Investigation (FBI) Free Trade Area of the Americas (FTAA) General Agreement on Trades and Tariffs (GATT) General Agreement on Trades in Services (GATS) German Central Intelligence Agency (BND) Gross National Product (GNP) International Monetary Fund (IMF) Kosovo Liberation Army (KLA) Military Professional Resources (MPRI) Most Favored Nation (MFN) Multilateral Agreement on Investments (MAI) Multilateral Trading Organization (MTO) National Agreement on Free Trade of the Americas (NAFTA) National Endowment for Democracy, (NED) National Security Council Directive (NSC, NSD) National Union for Total Independence (UNITA) NATO Alliance High Representatives to Bosnia-Herzegovina (HR) North Atlantic Treaty Alliance (NATO) Organization for Economic Cooperation and Development (OECD) Office of Strategic Studies (OSS) Organization of Oil Exporting Countries (OPEC) Partnership for Peace (PfP) Popular Movement for the Liberation of Angola (MPLA) Proto-Indo-Europeans (PIE) Quadrilateral Group of Trade Ministers (QUAD) Regional alliance of Eastern provinces of former Soviet Union (GUUAM) Seven leading Western Countries (G7) Socialist Workers Party (SWP) Special Operations Command (SOCOM) World Trade Organization (WTO) x [...]... increases competition, and, assuming productive jobs are shared, increases economic efficiency possibly equal to the invention of money, the printing press, and electricity Democratic -cooperative capitalism is superefficient capitalism Each gain of rights for the dispossessed has been touted by a power structure, and normally accepted by the masses, to be full rights Obviously the power structure has had... remains subtly monopolized today Full rights and equality reclaimed for all people through a modern land, technology, and money commons within democratic -cooperative- capitalism (fundamentally a Henry George concept) would convert the economy to superefficient capitalism and, assuming a sharing of productive jobs, efficiency increases would equal the gains from the invention of money, the printing press, and... property rights All this will become visible as we demonstrate how, through abandoning those remnants of exclusive feudal titles to nature’s wealth, restructuring to democratic -cooperative- capitalism and becoming superefficient capitalism, economic efficiency will increase equal to the invention of money, the printing press, and electricity As we describe today’s internal economies and global trade,... granting full rights and equality to all the world’s citizens, not by military power The immense gains in economic efficiencies through full equality and rights for all people under democratic -cooperative- (superefficient) -capitalism speak for themselves Once a society has attained full equality and full rights for all, class differences will largely disappear But society will not be the dull sameness propagandists... are the talents that have remained undeveloped because of the limitations of support for most in highly individualized societies Under the enormous efficiency and supports of democratic -cooperative- (superefficient) -capitalism, people and society will develop and blossom as never before a The United Nations was designed specifically to be controlled by the imperial-centers-of-capital Before it can effectively... residual-feudal exclusive title to nature’s wealth severely reduces the economic efficiency of capitalism is not even considered We are taught that monopolies have been eliminated by law This is not true Laws are designed by the powerful, for their protection, they have specifically designed subtle monopolization into the laws of capitalism Under feudal law granting exclusive title a tiny minority totally monopolized...xi Cooperative Capitalism xii Michael Hudson and Baruch Levine’s Privatization in the Near East and Classical World traces the ebb and flow of “privatization” through 5,000 years of history eventually developing... rises as people utilize their new free time for family interactions, to develop their many artistic talents, or to simply socialize with friends Under a modern commons within democratic -cooperative- (superefficient )capitalism, the just rights of private property are fully protected, individualism and competition are strengthened, and money no longer flows through those subtle monopolies to the interceptors... will have gone through an economic crisis during this transition, those deep and moving messages carried by the concerned will trump those buzzwords A peaceful, prosperous world is possible 16 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity Section A Internal Trade Wasted Wealth that the Developing World Must Avoid Henry George’s Concept of A Modern land Com m o ns 17 1 Henry George’s... unemployment insurance, Medicare, and Medicaid, are—at this time—all improperly labeled as government expenses; they are actually paid-for insurance funds separate from expenses of running governments 18 Cooperative Capitalism: A Blueprint for Global Peace and Prosperity income taxes disappear as use values are distributed instantly and without cost.a With society collecting the landrent, the price of land drops . i Cooperative Capitalism ii iii Cooperative Capitalism ___________________________________________________ A. money, the printing press, and electricity. Democratic -cooperative capitalism is superefficient capitalism. Each gain of rights for the dispossessed has