Copyright 2004 Richard K. Moore _________________________________________________ CHAPTER 1 - THE MATRIX * Are you ready for the red pill? The defining dramatic moment in the film The Matrix occurs just after Morpheus invites Neo to choose between a red pill and a blue pill. The red pill promises "the truth, nothing more." Neo takes the red pill and awakes to reality -- something utterly different from anything Neo, or the audience, could have expected. What Neo had assumed to be reality turned out to be only a collective illusion, fabricated by the Matrix and fed to a population that is asleep, cocooned in grotesque embryonic pods. In Plato's famous parable about the shadows on the walls of the cave, true reality is at least reflected in perceived reality. In the Matrix world, true reality and perceived reality exist on entirely different planes. The story is intended as metaphor, and the parallels that drew my attention had to do with political reality. This article offers a particular perspective on what's going on in the world -- and how things got to be that way -- in this era of globalization. From that red-pill perspective, everyday media-consensus reality -- like the Matrix in the film -- is seen to be a fabricated collective illusion. Like Neo, I didn't know what I was looking for when my investigation began, but I knew that what I was being told didn't make sense. I read scores of histories and biographies of historical figures, observing connections between them, and began to develop my own theories about roots of various historical events. I found myself largely in agreement with writers like Noam Chomsky and Michael Parenti, but I also perceived important patterns that others seem to have missed. When I started tracing historical forces, and began to interpret present-day events from a historical perspective. I could see the same old dynamics at work and found a meaning in unfolding events far different from what official pronouncements proclaimed. Such pronouncements are, after all, public relations fare, given out by politicians who want to look good to the voters. Most of us expect rhetoric from politicians, and take what they say with a grain of salt. But as my own picture of present reality came into focus, "grain of salt" no longer worked as a metaphor. I began to see that consensus reality -- as generated by official rhetoric and amplified by mass media -- bears very little relationship to actual reality. "The matrix" was a metaphor I was ready for. * Imperialism and the matrix From the time of Columbus to 1945, world affairs were largely dominated by competition among Western nations seeking to stake out spheres of influence, control sea lanes, and exploit colonial empires. Each Western power became the core of an imperialist economy whose periphery was managed for the benefit of the core nation. Military might determined the scope of an empire; wars were initiated when a core nation felt it had sufficient power to expand its periphery at the expense of a competitor. Economies and societies in the periphery were kept backward -- to keep their populations under control, to provide cheap labor, and to guarantee markets for goods manufactured in the core. Imperialism robbed the periphery not only of wealth but also of its ability to develop its own societies, cultures, and economies in a natural way for local benefit. The driving force behind Western imperialism has always been the pursuit of economic gain, ever since Isabella commissioned Columbus on his first entrepreneurial voyage. The rhetoric of empire concerning wars, however, has typically been about other things -- the White Man's Burden, bringing true religion to the heathens, Manifest Destiny, defeating the Yellow Peril or the Hun, seeking lebensraum, or making the world safe for democracy. Any fabricated motivation for war or empire would do, as long as it appealed to the collective consciousness of the population at the time. The propaganda lies of yesterday were recorded and became consensus history -- the fabric of the matrix. While the costs of territorial empire (fleets, colonial administrations, etc.) were borne by Western taxpayers generally, the profits of imperialism were enjoyed primarily by private corporations and investors. Government and corporate elites were partners in the business of imperialism: empires gave government leaders power and prestige, and gave corporate leaders power and wealth. Corporations ran the real business of empire while government leaders fabricated noble excuses for the wars that were required to keep that business going. Matrix reality was about patriotism, national honor, and heroic causes; true reality was on another plane altogether: that of economics. Industrialization, beginning in the late 1700s, created a demand for new markets and increased raw materials; both demands spurred accelerated expansion of empire. Wealthy investors amassed fortunes by setting up large-scale industrial and trading operations, leading to the emergence of an influential capitalist elite. Like any other elite, capitalists used their wealth and influence to further their own interests however they could. And the interests of capitalism always come down to economic growth; investors must reap more than they sow or the whole system comes to a grinding halt. Thus capitalism, industrialization, nationalism, warfare, imperialism -- and the matrix -- coevolved. Industrialized weapon production provided the muscle of modern warfare, and capitalism provided the appetite to use that muscle. Government leaders pursued the policies necessary to expand empire while creating a rhetorical matrix, around nationalism, to justify those policies. Capitalist growth depended on empire, which in turn depended on a strong and stable core nation to defend it. National interests and capitalist interests were inextricably linked -- or so it seemed for more than two centuries. * World War II and Pax Americana 1945 will be remembered as the year World War II ended and the bond of the atomic nucleus was broken. But 1945 also marked another momentous fission -- breaking of the bond between national and capitalist interests. After every previous war, and in many cases after severe devastation, European nations had always picked themselves back up and resumed their competition over empire. But after World War II, a Pax Americana was established. The US began to manage all the Western peripheries on behalf of capitalism generally, while preventing the communist powers from interfering in the game. Capitalist powers no longer needed to fight over investment realms, and competitive imperialism was replaced by collective imperialism (see sidebar). Opportunities for capital growth were no longer linked to the military power of nations, apart from the power of America. In his "Killing Hope, U.S. Military and CIA Interventions since World War II", William Blum chronicles hundreds of significant covert and overt interventions, showing exactly how the US carried out its imperial management role. * Sidebar Elite planning for postwar neo-imperialism... Recommendation P-B23 (July, 1941) stated that worldwide financial institutions were necessary for the purpose of "stabilizing currencies and facilitating programs of capital investment for constructive undertakings in backward and underdeveloped regions." During the last half of 1941 and in the first months of 1942, the Council developed this idea for the integration of the worldŠ. Isaiah Bowman first suggested a way to solve the problem of maintaining effective control over weaker territories while avoiding overt imperial conquest. At a Council meeting in May 1942, he stated that the United States had to exercise the strength needed to assure "security," and at the same time "avoid conventional forms of imperialism." The way to do this, he argued, was to make the exercise of that power international in character through a United Nations body. - Laurence Shoup & William Minter, in Holly Sklar's Trilateralism (see access, page XX), writing about strategic recommendations developed during World War II by the Council on Foreign Relations. In the postwar years matrix reality diverged ever further from actual reality. In the postwar matrix world, imperialism had been abandoned and the world was being "democratized"; in the real world, imperialism had become better organized and more efficient. In the matrix world the US "restored order," or "came to the assistance" of nations which were being "undermined by Soviet influence"; in the real world, the periphery was being systematically suppressed and exploited. In the matrix world, the benefit was going to the periphery in the form of countless aid programs; in the real world, immense wealth was being extracted from the periphery. Growing glitches in the matrix weren't noticed by most people in the West, because the postwar years brought unprecedented levels of Western prosperity and social progress. The rhetoric claimed progress would come to all, and Westerners could see it being realized in their own towns and cities. The West became the collective core of a global empire, and exploitative development led to prosperity for Western populations, while generating immense riches for corporations, banks, and wealthy capital investors. * Glitches in the matrix, popular rebellion, and neoliberalism The parallel agenda of Third-World exploitation and Western prosperity worked effectively for the first two postwar decades. But in the 1960s large numbers of Westerners, particularly the young and well educated, began to notice glitches in the matrix. In Vietnam imperialism was too naked to be successfully masked as something else. A major split in American public consciousness occurred, as millions of anti-war protestors and civil-rights activists punctured the fabricated consensus of the 1950s and declared the reality of exploitation and suppression both at home and abroad. The environmental movement arose, challenging even the exploitation of the natural world. In Europe, 1968 joined 1848 as a landmark year of popular protest. These developments disturbed elite planners. The postwar regime's stability was being challenged from within the core -- and the formula of Western prosperity no longer guaranteed public passivity. A report published in 1975, the "Report of the Trilateral Task Force on Governability of Democracies", provides a glimpse into the thinking of elite circles. Alan Wolfe discusses this report in Holly Sklar's eye-opening "Trilateralism". Wolfe focuses especially on the analysis Harvard professor Samuel P. Huntington presented in a section of the report entitled "The Crisis of Democracy." Huntington is an articulate promoter of elite policy shifts, and contributes pivotal articles to publications such as the Council on Foreign Relations's "Foreign Affairs". Huntington tells us that democratic societies "cannot work" unless the citizenry is "passive." The "democratic surge of the 1960s" represented an "excess of democracy," which must be reduced if governments are to carry out their traditional domestic and foreign policies. Huntington's notion of "traditional policies" is expressed in a passage from the report: To the extent that the United States was governed by anyone during the decades after World War II, it was governed by the President acting with the support and cooperation of key individuals and groups in the executive office, the federal bureaucracy, Congress, and the more important businesses, banks, law firms, foundations, and media, which constitute the private sector's "Establishment." In these few words Huntington spells out the reality that electoral democracy has little to do with how America is run, and summarizes the kind of people who are included within the elite planning community. Who needs conspiracy theories when elite machinations are clearly described in public documents like these? Besides failing to deliver popular passivity, the policy of prosperity for Western populations had another downside, having to do with Japan's economic success. Under the Pax Americana umbrella, Japan had been able to industrialize and become an imperial player -- the prohibition on Japanese rearmament had become irrelevant. With Japan's then-lower living standards, Japanese producers could undercut prevailing prices and steal market share from Western producers. Western capital needed to find a way to become more competitive on world markets, and Western prosperity was standing in the way. Elite strategists, as Huntington showed, were fully capable of understanding these considerations, and the requirements of corporate growth created a strong motivation to make the needed adjustments -- in both reality and rhetoric. If popular prosperity could be sacrificed, there were many obvious ways Western capital could be made more competitive. Production could be moved overseas to low-wage areas, allowing domestic unemployment to rise. Unions could be attacked and wages forced down, and people could be pushed into temporary and part-time jobs without benefits. Regulations governing corporate behavior could be removed, corporate and capital-gains taxes could be reduced, and the revenue losses could be taken out of public-service budgets. Public infrastructures could be privatized, the services reduced to cut costs, and then they could be milked for easy profits while they deteriorated from neglect. These are the very policies and programs launched during the Reagan-Thatcher years in the US and Britain. They represent a systematic project of increasing corporate growth at the expense of popular prosperity and welfare. Such a real agenda would have been unpopular, and a corresponding matrix reality was fabricated for public consumption. The matrix reality used real terms like "deregulation," "reduced taxes," and "privatization," but around them was woven an economic mythology. The old, failed laissez-faire doctrine of the 1800s was reintroduced with the help of Milton Friedman's Chicago School of economics, and "less government" became the proud "modern" theme in America and Britain. Sensible regulations had restored financial stability after the Great Depression, and had broken up anti-competitive monopolies such as the Rockefeller trust and AT&T. But in the new matrix reality, all regulations were considered bureaucratic interference. Reagan and Thatcher preached the virtues of individualism, and promised to "get government off people's backs." The implication was that ordinary people were to get more money and freedom, but in reality the primary benefits would go to corporations and wealthy investors. The academic term for laissez-faire economics is "economic liberalism," and hence the Reagan-Thatcher revolution has come to be known as the "neoliberal revolution." It brought a radical change in actual reality by returning to the economic philosophy that led to sweatshops, corruption, and robber-baron monopolies in the nineteenth century. It brought an equally radical change in matrix reality -- a complete reversal in the attitude that was projected regarding government. Government policies had always been criticized in the media, but the institution of government had always been respected -- reflecting the traditional bond between capitalism and nationalism. With Reagan, we had a sitting president telling us that government itself was a bad thing. Many of us may have agreed with him, but such a sentiment had never before found official favor. Soon, British and American populations were beginning to applaud the destruction of the very democratic institutions that provided their only hope of participation in the political process. * Globalization and world government The essential bond between capitalism and nationalism was broken in 1945, but it took some time for elite planners to fully recognize this new condition and to begin bringing the world system into alignment with it. The strong Western nation state had been the bulwark of capitalism for centuries, and initial postwar policies were based on the assumption that this would continue indefinitely. The Bretton Woods financial system (the IMF, World Bank, and a system of fixed exchange rates among major currencies) was set up to stabilize national economies, and popular prosperity was encouraged to provide political stability. Neoliberalism in the US and Britain represented the first serious break with this policy framework -- and brought the first visible signs of the fission of the nation-capital bond. The neoliberal project was economically profitable for corporations in the US and Britain, and the public accepted the matrix economic mythology. Meanwhile, the integrated global economy gave rise to a new generation of transnational corporations, and corporate leaders began to realize that corporate growth was not dependent on strong core nation-states. Indeed, Western nations -- with their environmental laws, consumer-protection measures, and other forms of regulatory "interference" -- were a burden on corporate growth. Having been successfully field tested in the two oldest "democracies," the neoliberal project moved onto the global stage. The Bretton Woods system of fixed rates of currency exchange was weakened, and the international financial system became destabilizing, instead of stabilizing, for national economies. The radical free-trade project was launched, leading eventually in 1993 to the World Trade Organization. The fission that had begun in 1945 was finally manifesting as an explosive change in the world system. The objective of neoliberal free-trade treaties is to remove all political controls over domestic and international trade and commerce. Corporations have free rein to maximize profits, heedless of environmental consequences and safety risks. Instead of governments regulating corporations, the WTO now sets rules for governments, telling them what kind of beef they must import, whether or not they can ban asbestos, and what additives they must permit in petroleum products. So far, in every case where the WTO has been asked to review a health, safety, or environmental regulation, the regulation has been overturned. Most of the world has been turned into a periphery; the imperial core has been boiled down to the capitalist elite themselves, represented by their bureaucratic, unrepresentative, WTO world government. The burden of accelerated imperialism falls hardest outside the West, where loans are used as a lever by the IMF to compel debtor nations such as Rwanda and South Korea to accept suicidal "reform" packages. In the 1800s, genocide was employed to clear North America and Australia of their native populations, creating room for growth. Today, a similar program of genocide has apparently been unleashed against sub-Saharan Africa. The IMF destroys the economies, the CIA trains militias and stirs up tribal conflicts, and the West sells weapons to all sides. Famine and genocidal civil wars are the predictable and inevitable result. Meanwhile, AIDS runs rampant while the WTO and the US government use trade laws to prevent medicines from reaching the victims. In matrix reality, globalization is not a project but rather the "inevitable" result of beneficial market forces. Genocide in Africa is no fault of the West, but is due to ancient tribal rivalries. Every measure demanded by globalization is referred to as "reform," (the word is never used with irony). "Democracy" and "reform" are frequently used together, always leaving the subtle impression that one has something to do with the other. The illusion is presented that all economic boats are rising, and if yours isn't, it must be your own fault: you aren't "competitive" enough. Economic failures are explained away as "temporary adjustments," or else the victim is blamed for not being sufficiently neoliberal. "Investor confidence" is referred to with the same awe and reverence that earlier societies might have expressed toward the "will of the gods." Western quality of life continues to decline, while the WTO establishes legal precedents ensuring that its authority will not be challenged when its decisions become more draconian. Things will get much worse in the West; this was anticipated in elite circles when the neoliberal project was still on the drawing board, as is illustrated in Samuel Huntington's "The Crisis of Democracy" report discussed earlier. * The management of discontented societies The postwar years, especially in the United States, were characterized by consensus politics. Most people shared a common understanding of how society worked, and generally approved of how things were going. Prosperity was real and the matrix version of reality was reassuring. Most people believed in it. Those beliefs became a shared consensus, and the government could then carry out its plans as it intended, "responding" to the programmed public will. The "excess democracy" of the 1960s and 1970s attacked this shared consensus from below, and neoliberal planners decided from above that ongoing consensus wasn't worth paying for. They accepted that segments of society would persist in disbelieving various parts of the matrix. Activism and protest were to be expected. New means of social control would be needed to deal with activist movements and with growing discontent, as neoliberalism gradually tightened the economic screws. Such means of control were identified and have since been largely implemented, particularly in the United States. In many ways America sets the pace of globalization; innovations can often be observed there before they occur elsewhere. This is particularly true in the case of social-control techniques. The most obvious means of social control, in a discontented society, is a strong, semi-militarized police force. Most of the periphery has been managed by such means for centuries. Urban and suburban ghettos in America -- where the adverse consequences of neoliberalism are currently most concentrated -- have literally become occupied territories, where police beatings and unjustified shootings are commonplace. So that the beefed-up police force could maintain control in conditions of mass unrest, elite planners also realized that much of the Bill of Rights would need to be neutralized. This is not surprising, given that the Bill's authors had just lived through a revolution and were seeking to ensure that future generations would have the means to organize and overthrow any oppressive future government. In the matrix, the genre of the TV or movie police drama has served to create a reality in which "rights" are a joke, the accused are despicable sociopaths, and no criminal is ever brought to justice until some noble cop or prosecutor bends the rules a bit. Government officials bolstered the construct in the 1980s and 1990s by declaring "wars" on crime and drugs; the noble cops are fighting a war out there in the streets -- and you can't win a war without using your enemy's dirty tricks. The CIA plays its role by managing the international drug trade and making sure that ghetto drug dealers are well supplied. In this way, the American public was led down the garden path to accepting the means of its own suppression. The covert guiding of various social movements has proven to be one of the most effective means of programming factions and stirring them against one another. Fundamentalist religious movements have been particularly useful. They have been used not only within the US, but also to maximize divisiveness in the Middle East and for other purposes throughout the empire. The collective energy and dedication of "true believers" makes them a potent political weapon that movement leaders can readily aim where needed. In the US that weapon has been used to attack the women's movement, to support repressive legislation, and generally to bolster the ranks of what is called in the matrix the "right wing." In the matrix, the various factions believe that their competition with each other is the process that determines society's political agenda. Politicians want votes, and hence the biggest and best-organized factions should have the most influence, and their agendas should get the most political attention. In reality there is only one significant political agenda these days: the maximization of capital growth through the dismantling of society, the continuing implementation of neoliberalism, and the management of empire. During the Clinton era, his liberal rhetoric and his playing around with health care and gay rights were not the result of liberal pressure. They were rather the means by which Clinton was sold to liberal voters, so that he could proceed with real business: getting NAFTA through Congress, promoting the WTO, giving away the public airwaves, justifying military interventions, and so forth. Issues of genuine importance are never raised in campaign politics -- this is a major glitch in the matrix for those who have eyes to see it. * The New American Century The New American Century began on September 11, 2001. For anyone familiar with the history of American war-enabling "outrage incidents", the attacks on the World Trade Center and Pentagon were highly suspicious from the very beginning. Four planes were known to be hijacked for more than an hour, and yet no fighters were scrambled to intercept them -- not even after the first Tower had been hit. This is completely contrary to standard procedure. Typically, when any flight goes off course in the U.S., even if it's not a hijacking, interceptors are scrambled within minutes. The manner in which the Towers collapsed was also highly suspicious -- particularly the third tower, which was not even struck by a plane. All three collapsed in precisely the manner one would expect from a professional demolition, and numerous fire fighters and other eyewitnesses reported hearing explosions in the buildings -- after the fires had been brought mostly under control. Although the Administration expressed complete surprise at the attacks, it claimed to know the exact identities of all the hijackers within hours of the event. While the whole world was transfixed to TV screens, awed at the magnitude of the attacks, President Bush read stories to children and other top administration officials carried on with their normal schedules. The announcement of the War On Terrorism and the Patriot Act followed entirely too rapidly to have been the result of a surprise attack. As more information emerged in the following weeks and months, the official version of the 9/11 events became increasingly untenable. The administration had received dozens of warnings that Al Qaeda was planning to use hijacked aircraft as attack planes, contrary to White House claims of being caught completely by surprise. In fact, the Pentagon had carried out practice exercises in anticipation of precisely such an attack. Two weeks prior to the attacks, Lt-Gen Mahmud Ahmad, head of Pakistani Intelligence, transferred $100,000 to the account of Mohammed Atta, leader of the alleged hijackers. While the attacks were being carried out, Ahmad was having breakfast in the Senate lunch room with members of the Select Committee on Intelligence. The FBI identified Ahmad as the "moneybags of the hijacking", and yet he was allowed to leave the country and there has been no follow-up regarding his involvement. About the only thing supporting the Administration's official version of events is the inability of most people to imagine that the events of 9/11 could have been an inside job. For those familiar with America's history of "outrage incidents", not much imagination is required. We now know that Rumsfeld, Wolfowitz, and crew came into the White House with a detailed agenda up their sleeves, and it was an agenda that would have been very difficult to pursue without the dramatic events of 9/11. Indeed, such an agenda would have been incomplete if it did not include a plan for achieving domestic public acceptance and international acquiescence. And after 9/11, the pre-existing agenda was immediately launched into implementation. In terms of evaluating suspected perpetrators for 9/11, one must clearly attribute to top U.S. elites motive, opportunity, means, modus operandi, and lack of alibi. In addition there has been no evidence presented that is contrary to their culpability. The agenda of the new White House was written up as a report, "Rebuilding America's Defenses -- Strategy, Forces and Resources For a New Century", produced in September 2000 by The Project for the New American Century (PNAC). The report is an updated version of a classified "Defense Policy Guidance" document drafted in 1992 under the supervision of Paul Wolfowitz. Some of the founding members of PNAC include Deputy Defense Secretary Paul Wolfowitz, Vice President Dick Cheney, Defense Secretary Donald Rumsfeld, and Defense Policy Board chairman Richard Perle. Here are some excerpts from their written agenda for the New American Century: "The United States has for decades sought to play a more permanent role in Gulf regional security. While the unresolved conflict with Iraq provides the immediate justification, the need for a substantial American force presence in the Gulf transcends the issue of the regime of Saddam Hussein". (p. 14) "Further, these constabulary missions are far more complex and likely to generate violence than traditional 'peacekeeping' missions. For one, they demand American political leadership rather than that of the United Nations, as the failure of the UN mission in the Balkans and the relative success of NATO operations there attests" (p. 11). "Despite the shifting focus of conflict in Europe, a requirement to station U.S. forces in northern and central Europe remains. The region is stable, but a continued American presence helps to assure the major European powers, especially Germany, that the United States retains its long-standing security interest in the continent. This is especially important in light of the nascent European moves toward an independent defense 'identity' and policy; it is important that NATO not be replaced by the European Union, leaving the United States without a voice in European security affairs" (p. 16). "Since today's peace is the unique product of American preeminence, a failure to preserve that preeminence allows others an opportunity to shape the world in ways antithetical to American interests and principles. The price of American preeminence is that, just as it was actively obtained, it must be actively maintained" (p. 73). "To preserve American military preeminence in the coming decades, the Department of Defense must move more aggressively to experiment with new technologies and operational concepts, and seek to exploit the emerging revolution in military affairs" (p. 50). "Further, the process of transformation, even if it brings revolutionary change, is likely to be a long one, absent some catastrophic and catalyzing event -- like a new Pearl Harbor" (p. 51). Soon after the PNAC crew managed to gain control of the White House, they got their "new Pearl Harbor", they got their "substantial American force presence in the Gulf" under "American political leadership", and the revolution in military affairs is now moving "more aggressively". The "War on Terrorism", enabled by 9/11's "new Pearl Harbor", is the smoke screen behind which the agenda of the New American Century is being aggressively implemented. American "preeminence", apparently, is to be ensured into the future. No challenge to U.S. military or economic supremacy is to be tolerated. _________________________________________________