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In the immediate aftermath of the September 11 attacks, Americans
experienced a mixture of fear and warmth, a quickening of the national
spirit. The extraordinary heroism of the firefighters, police and others
in coping with death and destruction rebuked the mood of "infectious
greed" generated by this era of market dominance. Civil servants and
soldiers, even government itself, were accorded new respect in the face
of real dangers and collective need. These developments contained a
hopeful thread for reconstructing our frayed democracy.

Adding to the sense of possibility were the expressions of sympathy and
solidarity from around the world. We Americans, so often the object of
envy or criticism, found ourselves the recipients of a great outpouring
of concern, with countries all over the globe condemning the callous,
fanatical terrorism that could turn an airplane full of ordinary people
into a weapon of horrific destruction.

But the moment was brief and did not last. One year later, we mark not
only the terrible loss of life suffered that day but the tragic failure
of American leadership since then.

Abroad, the Bush team's initial military victory in breaking up Al Qaeda
cells and routing their Taliban protectors in Afghanistan has been
tarnished by a stream of postwar revelations of needless civilian deaths
from US bombs and of mistreatment of Al Qaeda and Taliban prisoners.
Meanwhile, the United States is failing the challenge of rebuilding
Afghanistan, leaving its people facing the same chaos, violence and
extortion that prevailed under the warlords whose depredations helped
usher in the Taliban regime.

America's early success in mobilizing an alliance against Al Qaeda has
been squandered. Rather than pursuing a limited military action in
Afghanistan designed to strike a swift blow against the terrorist
leadership responsible for the attacks and then joining in a sustained,
worldwide policing action to dismantle the terrorist infrastructure, the
Bush Administration has exploited the tragedy as a license for an
endless war against endless enemies. It has used September 11 to
consecrate an American empire claiming the right to impose its writ
worldwide.

When the President targeted his spurious "axis of evil" and announced a
new doctrine of "pre-emptive attack," he alarmed allies everywhere. As
Jonathan Schell writes in this issue, Bush has claimed "a radically new
conception of America's role in the world," asserting that it has "the
right to overthrow regimes by military force at its sole discretion."
And now, under this unexamined doctrine, the President and his national
security team relentlessly tout inevitable war with Iraq, dismissing the
opposition of many US generals and much of the Republican foreign policy
establishment.

Whether it is on the issue of invading Iraq or the desirability of an
International Criminal Court or what must be done to bring about peace
in the Middle East or the need to take seriously the dangers of global
warming, the Administration disdains the opinions of even our oldest
allies, making US leadership a source of resentment rather than hope.
Such actions, South African Breyten Breytenbach writes, have led to the
feeling that America is a cowboy state that "has made the world a much
more dangerous place for the rest of us." No US government has been this
isolated since the 1920s.

While pursuing its grandiose Pax Americana, the Administration has
failed to use this opportunity to honestly examine flaws in America's
past policies toward the rest of the world, and at the same time it has
pursued new policies that lose sight of moral means and goals. It
dismisses any attempt to probe the roots of terrorist attacks. Merely
asking, "Why do they hate us?" is deemed "objectively" pro-terrorist.
Terrorism is defined as metaphysical evil, divorced from its context.
Human rights as a foreign policy objective are jettisoned, and
friendships are sealed--no questions asked--with repressive regimes that
seem to be on "our" side. Russia, Indonesia, China, Pakistan and Egypt
have been allowed to hijack the rhetoric of antiterrorism to justify
repression of citizens opposing their current regimes. The lack of a
coherent US role in the Israeli-Palestinian conflict has allowed
extremists to drown out the voices of peace.

Bush's new international doctrines met with little dissent in the media
or from Congressional Democrats, with the exception of brave legislators
like Dennis Kucinich, Barbara Lee, Russ Feingold and John Kerry. Most
Americans were seduced into passive consent, either prompted by fear of
further attacks or cowed by an Administration that branded criticism as
subversive. The media catered to the hyperpatriotic mood, praising
Bush's every move and rarely, until recently, offering any critique of
his Administration's actions.

At home, the President issued no call for sacrifice. For the first time
in our history, we were summoned to a global war for which the wealthy
were asked to pay less in taxes, even as the federal budget plummeted
into the red. The Administration larded the military with money,
demanding billions for cold war weaponry and missile defense. It
defaulted on the core national security imperative of reducing our
dependence on imported oil, choosing instead to prop up feudal empires
and dictatorships (insuring that we will be widely hated as a cause of
misery and oppression in the Middle East and the rest of the world).
After resisting for months, the President cobbled up a massive "homeland
security" reorganization that omits any reform--and avoids any
investigation--of the intelligence agencies and their failures leading
up to September 11.

John Ashcroft, Bush's Attorney General, has become the worst threat to
civil rights and liberties since J. Edgar Hoover and Joe McCarthy
peddled fear and division in the early years of the cold war. As David
Cole writes, "With the exception of the right to bear arms, one would be
hard pressed to name a single constitutional liberty that the Bush
Administration has not overridden in the name of protecting our
freedom." Ashcroft has asserted unprecedented license for the executive
while insisting its acts be shrouded in secrecy. It is a measure of the
Attorney General's extremism that his summary detention policies have
been lambasted by the federal courts. In its first public opinion ever,
the secret Foreign Intelligence Surveillance Court, a conservative body
that has never in its existence denied the Justice Department a warrant,
decried Ashcroft's abuse of authority to undermine constitutional
rights.

And now, the Administration and the Republican Party--worried about the
flagging economy, stock market collapse and corporate crime
wave--attempt to exploit September 11 and the war on terrorism for
partisan advantage. The President has used his post-9/11 popularity to
raise unprecedented sums for Republican candidates. His political guru,
Karl Rove, urges Republicans to "focus on the war" and advertise their
loyalty to the President.

The anniversary of September 11 should be a time of renewed, and
genuine, patriotism as well as of grieving. But it should also be an
occasion to reflect on where we've traveled in the past year and what
changes in course need to be made. Americans who disagree with the
direction in which this Administration is leading the country should
start building an effective challenge to its policies, with an eye first
on the fall elections--a challenge founded on the bedrock principles of
justice, human rights and internationalism. Some things have changed,
but those principles have not. Another world was possible before
September 11. It still is.

Foreign creditors will eventually pull the plug.

The terrorism war begins to sag.
The perpetrator we were meant to bag
Remains at large, and wartime fervor fades.
Then Bush and all his hawkish White House aides
Drop sanctions as the way to tame Iraq
And say, "Without delay, we must attack."
If that war sags, there's still a backup plan.
It's war without delay against Iran.
And when the zest for that war, too, has faded?
That's easy: North Korea gets invaded.
But then it's hard to think of what to do.
Destroy Bahrain? Bomb France? Invade Peru?

I have met three hijackers in my life, and I hope I do not sound crabby and disillusioned if I add that the standard of hijacking is not what it used to be.

Kurds want Saddam Hussein gone but are wary about joining a US-led attack.

"In the Roman empire, only Romans voted. In modern global capitalism,
only Americans vote," declared George Soros in June. "Brazilians do not
vote."

He spoke too soon. With only weeks remaining till the presidential
election on October 6, Workers Party (PT) candidate Luis Inacio Da
Silva--"Lula," as he is popularly known--is still leading in the polls.
His closest competitor, Ciro Gomes, is an ordinary politician whose rise
to second place was fueled by harsh populist rhetoric against the IMF,
neoliberalism and the economic failures of the current administration.
The ruling party's candidate, José Serra, is a distant
third--despite Soros's claim that Brazilians had no choice but to elect
him.

The Wall Street-Treasury Complex, as Columbia economist Jagdish Bhagwati
has named the IMF and its private sector allies, won't be able to pick
the president this time. So they are going for second best: choosing the
policies. On August 19 President Fernando Henrique Cardoso met with the
contenders and tried to rope them into pledging support for continuing
IMF policies over the next three years. "The candidates," he told the
press, "whether they want to or not, will have to commit to these [IMF]
agreements."

We'll see about that, too. The IMF recently approved a $30 billion loan,
with most of it to be disbursed in installments next year. The idea is
that the IMF can cut off the flow of money if the new government
deviates from its program of fiscal and monetary austerity. That's the
way it usually works, but this time Imperial Rome may not get to choose
the policy any more than the proconsul.

Why not? First, Brazil has an explosive debt burden. The IMF's latest
loan was intended to stabilize Brazil's bond and currency markets, so as
to prevent a default before the election. It will also help US banks,
which have outstanding loans of more than $25 billion in Brazil, to get
some of their money out, on more favorable terms, before the collapse.
(The IMF may as well have written the check to Citigroup, FleetBoston
and J.P. Morgan Chase.) But it will not prevent a default.

The default--or "restructuring," if it takes place in an orderly,
negotiated manner--will make plain to everyone the failure of the
Cardoso/IMF model in Brazil. Since 1994 growth has been rather
slow--about 1.3 percent in per capita income annually. At the same time,
the public debt has soared relative to the economy--from 29 to 60
percent of GDP. And this was on top of $100 billion worth of
privatization, a massive raiding of public assets that should have
helped government finances significantly. The country's foreign debt has
also swelled. This is truly an enormous mortgaging of the country's
future, with very little to show for it. For Cardoso to lecture the
current candidates about fiscal austerity is like Ronald Reagan and
George Bush Senior--who presided over a similar record-breaking debt
run-up in the United States--telling their successors to please keep the
deficits down.

The business press seems to have missed the irony of all this, and
instead has blamed Lula's rise in the polls for the current financial
crisis. That, they say, has spooked investors, causing the currency to
fall (26 percent so far this year), foreign credit to dry up and the
country's risk premium to soar to the level of Nigeria's. But this
picture confuses the event that triggered the crisis with the actual
cause. Just as the accounting and corporate scandals did not cause the
stock market collapse in the United States--stocks were overvalued
relative to any conceivable economic future and had to crash sooner or
later--Brazilian bond prices aren't falling because Lula is ahead in the
polls. The real reason for the financial crisis is that the smarter (or
more risk-averse) bondholders have done the necessary calculations and
concluded that Brazil cannot pay its debt. Although some gamblers will
hang on to collect high returns in hope of jumping ship at the last
minute, default is inevitable.

But that's no reason for Brazil to surrender its democracy to Washington
and Wall Street. The PT has a reasonable reform program: lower domestic
interest rates (now set by the central bank at 18 percent, among the
world's highest), some support for domestic industry and small and
medium-sized agriculture, and a "zero hunger" program, including food
stamps, for the poor.

Brazil used to have one of the fastest-growing economies in the world:
From 1960 to 1980, income per person grew by 141 percent. From 1980 to
2000 it grew by 5 percent, or hardly at all. This is the story of
Brazil's neoliberal experiment. It is similar throughout most of the
region: hence the spreading political unrest. A Workers Party victory
could change the history of Latin America.

Lula might just be the right person for the job. Born into an
impoverished peasant family in one of the poorer areas of Brazil's
Northeast, he confronted hardship and hunger, and by the age of 12 had
to go to work. He rose through the ranks of the metalworkers' union and
was jailed for labor activism during the military dictatorship. He was
elected to Congress in 1986, where he helped win some important
provisions for workers' rights, healthcare and education in the new
(postmilitary) Constitution. Tens of millions of poor and working people
in Brazil identify with both his personal and political struggle against
the injustice of one of the world's most unequal societies. He has been
compared to Nelson Mandela, fighting to bring the poor of Brazil out of
economic apartheid. And the PT also has considerable support among those
in the educated classes, many of whom recognize that the party's program
makes more economic sense than the slow-growth, high-interest-rate,
explosive-debt scenario of the past and present.

But winning the election is only half the battle. One reason the IMF is
so eager to postpone the inevitable until after the election is so it
can threaten the new president with default if he doesn't knuckle under.
If he wins, Lula and the PT will have to explain to the country that
they didn't create this mess and stick to their program as the way
forward. It won't be easy, but it can be done.

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