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(55,745 posts)
44. ''The issues are much too important for the Chilean voters to be left to decide for themselves...''
Tue Jun 28, 2016, 09:59 AM
Jun 2016

"... l don't see why we need to stand by and watch a country go communist because of the irresponsibility of its own people." -- Henry Kissinger on the US-backed coup d'etat in Chile.

The Nixon Administration’s Response to Salvador Allende and Chilean Expropriation


...Following a meeting regarding U.S. policy on expropriation on the Presidential yacht Sequoia on June 10, 1971 (details of which have yet to be declassified) the Administration’s hard-line position gradually began to take shape.

A number of important meetings took place the day after the Sequoia meeting. During this first meeting, Nixon and Kissinger discussed Chilean attempts to secure new loans and renegotiate their existing obligations. Nixon fumed over the unwillingness of the Congress to do more for Brazil, which, in contrast to Chile, was led by “friends” of the United States. Nixon and Kissinger also discussed the assassination of the former Chilean Cabinet Minister, Edmundo Pérez Zujovic, on June 8, 1971 by a Chilean anarchist group, Vanguard of the People. Nixon and Kissinger chuckled at the Allende’s accusation that the CIA had orchestrated the assassination, noting that Zujovic was a conservative opponent of Allende, and probably the last person the U.S. Government would want to assassinate. Besides, as Kissinger noted, the CIA was too “incompetent” to pull off such an operation, recalling that the last person whom the CIA assassinated had lingered for three weeks before expiring.(vi)

SOURCE w/details, tapes, yada...


Wonder what "expropriation" they talked about? Cuba? Chile? Chicago? Wonder how many CIA victims took three weeks to expire? And that was back when assassination was still illegal, before the world changed on 9/11.

Operating on behalf of Nixon and Wall Street, the CIA and Milton Friedman & Friends perfected the art of turning the screws through austerity in Chile.

"The Chicago Boys in Chile: Economic Freedom's Awful Toll"

Orlando Letelier
August 28, 1976


The Economic Prescription and Chile's Reality


These are the basic principles of the economic model offered by Friedman and his followers and adopted by the Chilean junta: that the only possible framework for economic development is one within which the private sector can freely operate; that private enterprise is the most efficient form of economic organization and that, therefore, the private sector should be the predominant factor in the economy. Prices should fluctuate freely in accordance with the laws of competition. Inflation, the worst enemy of economic progress, is the direct result of monetary expansion and can be eliminated only by a drastic reduction of government spending.

Except in present-day Chile, no government in the world gives private enterprise an absolutely free hand. That is so because every economist (except Friedman and his followers) has known for decades that, in the real life of capitalism, there is no such thing as the perfect competition described by classical liberal economists. In March 1975, in Santiago, a newsman dared suggest to Friedman that even in more advanced capitalist countries, as for example the United States, the government applies various types of controls on the economy. Mr. Friedman answered: I have always been against it, I don't approve of them. I believe we should not apply them. I am against economic intervention by the government, in my own country, as well as in Chile or anywhere else (Que Pasa, Chilean weekly, April 3, 1975).


A Rationale tor Power


Until September 11, 1973, the date of the coup, Chilean society had been characterized by the increasing participation of the working class and its political parties in economic and social decision making. Since about 1900, employing the mechanisms of representative democracy, workers had steadily gained new economic, social and political power. The election of Salvador Allende as President of Chile was the culmination of this process. For the first time in history a society attempted to build socialism by peaceful means. During Allende's time in office, there was a marked improvement in the conditions of employment, health, housing, land tenure and education of the masses. And as this occurred, the privileged domestic groups and the dominant foreign interests perceived themselves to be seriously threatened.

Despite strong financial and political pressure from abroad and efforts to manipulate the attitudes of the middle class by propaganda, popular support for the Allende government increased significantly between 1970 and 1973. In March 1973, only five months before the military coup, there were Congressional elections in Chile. The political parties of the Popular Unity increased their share of the votes by more than 7 percentage points over their totals in the Presidential election of 1970. This was the first time in Chilean history that the political parties supporting the administration in power gained votes during a midterm election. The trend convinced the national bourgeoisie and its foreign supporters that they would be unable to recoup their privileges through the democratic process. That is why they resolved to destroy the democratic system and the institutions of the state, and, through an alliance with the military, to seize power by force.

In such a context, concentration of wealth is no accident, but a rule; it is not the marginal outcome of a difficult situation -- as they would like the world to believe -- but the base for a social project; it is not an economic liability but a temporary political success. Their real failure is not their apparent inability to redistribute wealth or to generate a more even path of development (these are not their priorities) but their inability to convince the majority of Chileans that their policies are reasonable and necessary. In short, they have failed to destroy the consciousness of the Chilean people. The economic plan has had to be enforced, and in the Chilean context that could be done only by the killing of thousands, the establishment of concentration camps all over the country, the jailing of more than 100,000 persons in three years, the closing of trade unions and neighbourhood organizations, and the prohibition of all political activities and all forms of free expression.

While the Chicago boys have provided an appearance of technical respectability to the laissez-faire dreams and political greed of the old landowning oligarchy and upper bourgeoisie of monopolists and financial speculators, the military has applied the brutal force required to achieve those goals. Repression for the majorities and economic freedom for small privileged groups are in Chile two sides of the same coin.



Three weeks after this was published in The Nation (Aug. 28, 1976), Orlando Letelier was assassinated by a car bomb in Washington, D.C.


The author helped implement the privatization scam for Nixon, Pinochet, CIA and the globalist crowd. They want to do it here, of course:

President Clinton and the Chilean Model.

By José Piñera

Midnight at the House of Good and Evil

"It is 12:30 at night, and Bill Clinton asks me and Dottie: 'What do you know about the Chilean social-security system?'” recounted Richard Lamm, the three-term former governor of Colorado. It was March 1995, and Lamm and his wife were staying that weekend in the Lincoln Bedroom of the White House.

I read about this surprising midnight conversation in an article by Jonathan Alter (Newsweek, May 13, 1996), as I was waiting at Dulles International Airport for a flight to Europe. The article also said that early the next morning, before he left to go jogging, President Bill Clinton arranged for a special report about the Chilean reform produced by his staff to be slipped under Lamm's door.

That news piqued my interest, so as soon as I came back to the United States, I went to visit Richard Lamm. I wanted to know the exact circumstances in which the president of the world’s superpower engages a fellow former governor in a Saturday night exchange about the system I had implemented 15 years earlier.

Lamn and I shared a coffee on the terrace of his house in Denver. He not only was the most genial host to this curious Chilean, but he also proved to be deeply motivated by the issues surrounding aging and the future of America. So we had an engaging conversation. At the conclusion, I ventured to ask him for a copy of the report that Clinton had given him. He agreed to give it to me on the condition that I do not make it public while Clinton was president. He also gave me a copy of the handwritten note on White House stationery, dated 3-21-95, which accompanied the report slipped under his door. It read:

[font color="green"]Dick,

Sorry I missed you this morning.
It was great to have you and Dottie here.
Here's the stuff on Chile I mentioned.


Bill.[/font color]

Three months before that Clinton-Lamm conversation about the Chilean system, I had a long lunch in Santiago with journalist Joe Klein of Newsweek magazine. A few weeks afterwards, he wrote a compelling article entitled,[font color="green"] "If Chile can do it...couldn´t North America privatize its social-security system?" [/font color]He concluded by stating that "the Chilean system is perhaps the first significant social-policy idea to emanate from the Southern Hemisphere." (Newsweek, December 12, 1994).

I have reasons to think that probably this piece got Clinton’s attention and, given his passion for policy issues, he became a quasi expert on Chile’s Social Security reform. Clinton was familiar with Klein, as the journalist covered the 1992 presidential race and went on anonymously to write the bestseller Primary Colors, a thinly-veiled account of Clinton’s campaign.

“The mother of all reforms”

While studying for a Masters and a Ph.D. in economics at Harvard University, I became enamored with America’s unique experiment in liberty and limited government. In 1835 Alexis de Tocqueville wrote the first volume of Democracy in America hoping that many of the salutary aspects of American society might be exported to his native France. I dreamed with exporting them to my native Chile.

So, upon finishing my Ph.D. in 1974 and while fully enjoying my position as a Teaching Fellow at Harvard University and a professor at Boston University, I took on the most difficult decision in my life: to go back to help my country rebuild its destroyed economy and democracy along the lines of the principles and institutions created in America by the Founding Fathers. Soon after I became Secretary of Labor and Social Security, and in 1980 I was able to create a fully funded system of personal retirement accounts. Historian Niall Ferguson has stated that this reform was “the most profound challenge to the welfare state in a generation. Thatcher and Reagan came later. The backlash against welfare started in Chile.”

But while de Tocqueville’s 1835 treatment contained largely effusive praise of American government, the second volume of Democracy in America, published five years later, strikes a more cautionary tone. He warned that “the American Republic will endure, until politicians realize they can bribe the people with their own money.” In fact at some point during the 20th century, the culture of self reliance and individual responsibility that had made America a great and free nation was diluted by the creation of [font color="green"] “an Entitlement State,”[/font color] reminiscent of the increasingly failed European welfare state. What America needed was a return to basics, to the founding tenets of limited government and personal responsibility.

[font color="green"]In a way, the principles America helped export so successfully to Chile through a group of free market economists needed to be reaffirmed through an emblematic reform. I felt that the Chilean solution to the impending Social Security crisis could be applied in the USA.[/font color]



Democratic solutions work because they are Democratic, not capitalist.
Like Mossadegh in Iran in 1954, truebluegreen Jun 2016 #1
Right. elleng Jun 2016 #4
Right-wingers have even come here to fight about Chile being far better off now because of him Judi Lynn Jun 2016 #23
I recall...the CIA has been causing trouble since it was created. truebluegreen Jun 2016 #34
He did nail them in his farewell speech. I wonder if they were just too powerful already, by then! Judi Lynn Jul 2016 #46
Exactly. And the "Official Story" is the exact opposite. arcane1 Jun 2016 #35
The movie "Missing" really shows the horror of the "Chile Miracle." alfredo Jun 2016 #2
Naomi Klein spends quite a bit of time on the Chile coup... Wounded Bear Jun 2016 #3
Yeah and an experiment in Chicago school economics alfredo Jun 2016 #12
Who can ever forget Nixon's words to Richard Helms, "Make the economy scream." Judi Lynn Jun 2016 #24
Nixon was an ugly little worm. alfredo Jun 2016 #31
a superb (and massive) documentary is Patricio Guzmán's The Battle of Chile AntiBank Jun 2016 #10
It's on youtube alfredo Jun 2016 #13
Never knew about this. Thanks, so much for introducing this for those who didn't see it already. n/t Judi Lynn Jun 2016 #25
It was really well done. So glad the producer chose to do that story. Every bit of truth helps. n/t Judi Lynn Jun 2016 #17
Notice the prominent picture of Nixon? alfredo Jun 2016 #19
Yes! An unbelievable tragedy, all on demand from "I am not a criminal." n/t Judi Lynn Jun 2016 #26
Milton Friedman - free market capitalism. alfredo Jul 2016 #51
Outstanding summary.The pattern is so clear, too, and it was carried out "without public awareness." Judi Lynn Jul 2016 #52
Yes! That film was incredibly powerful.. whathehell Jun 2016 #30
The director,Costa-Gavras also made a movie regarding the US torturer, Dan Mitrione,"State of Siege" Judi Lynn Jul 2016 #47
I worked in Chile watoos Jun 2016 #5
They wanted the same thing for Iraq. alfredo Jun 2016 #14
Glad you were able to get through to that man. People need to know there are normal people here. n/t Judi Lynn Jun 2016 #18
They made it impossible for Chile to get loans. alfredo Jun 2016 #20
They even stooped as low as to start a rumor after he died that they had found red silk pajamas Judi Lynn Jun 2016 #36
They worshipped Lee Atwater alfredo Jun 2016 #39
It hasn't seemed to phase him that at the end of his life,when he was dying, he apologized profusely Judi Lynn Jul 2016 #48
Pablo Neruda: JEB Jun 2016 #6
.+1 840high Jun 2016 #7
We are on the march to make that statement a lie. n/t jtuck004 Jun 2016 #9
Hope we lose! n/t Judi Lynn Jun 2016 #27
Most Americans have no appreciation for South American writers... Wounded Bear Jun 2016 #16
Hated by their own fascist, US-backed governments, many ended up on hit lists, many moved elsewhere Judi Lynn Jul 2016 #49
Never heard that one. It's perfect. Judi Lynn Jun 2016 #21
Neruda is featured in this movie alfredo Jun 2016 #40
Thank you for this. zentrum Jun 2016 #8
Thank you for taking the time, zentrum. n/t Judi Lynn Jun 2016 #22
His daughter is one of my favorite authors - 'House of Spirits' alittlelark Jun 2016 #11
She is a wonderful writer. alfredo Jun 2016 #15
You've given us the encouragement to think hard about reading it. n/t Judi Lynn Jun 2016 #28
His niece actually, but he did raise her. Ken Burch Jun 2016 #29
Just a couple of relevant photos: Herman4747 Jun 2016 #32
How much treachery can you stuff into a photo op at one time? That guy radiates evil. Thanks. n/t Judi Lynn Jun 2016 #37
Kissinger is one of the foulest creeatures to ever suck air. JEB Jun 2016 #42
American interventionism at its foulest. DirkGently Jun 2016 #33
Oh, yeah! You may have seen some of the posts claiming these maneuvers were so long ago! Judi Lynn Jun 2016 #38
Another day, another enemy of capita.. er FREEDOM to mop up. DirkGently Jun 2016 #41
K&R this important post. JEB Jun 2016 #43
''The issues are much too important for the Chilean voters to be left to decide for themselves...'' Octafish Jun 2016 #44
Excellent reading as always. Pinochet's main legacy -Chile's pension funds- is in fact a huge scam. forest444 Jul 2016 #45
"... l don't see why we need to stand by and watch a country go communist because of the irresponsib Judi Lynn Jul 2016 #50
Agustin Edwards & Richard Helms LessAspin May 2017 #53
It seemed he'd never leave. What a shame he couldn't take his evil impact with him. Judi Lynn May 2017 #54
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