Original subtitles

A state of shock ...

It's not just what happens to us when something bad happens.

It's what happens to us when we lose our narrative...

When whe lose our history, when we become disoriented.

What keeps us oriented, and alert, and out of shock...

Is our history.

So, period of crisis, like the one we are in

is a very good time to think about history

to think about continuities, to think about roots.

It's a good time to place ourselves

in the longer human story of struggle.

THE SHOCK DOCTRINE

Based on Naomi Klein's Book Subtitulado para Subdivx por Damian 667 y Astroboy7 translated by NoOne

Our story begins on June 1st of 1951

when representatives of western intelligence agencies

secretly met with academics, at Montreal's Ritz-Carlton hotel.

This meeting contributed to military funded research

into the effects of sensory deprivation at McGill university.

Sensory deprivation really is a way of producing extreme monotony.

Causes loss of critical capacity

thinking is less clear

and the subjects complain that they can't even daydream.

And when you have colege students that can't daydream. You are ahead the bad way.

I began to think while we were doing our experiments, that it's possible that

something that involves physical disconfort, or even pain

might be more tolerable than simply the deprivation conditions that we studied.

Hebb decided to stop work on the research.

I had no idea when I suggested that

what a vicious weapon, potentialy vicious weapon this could be.

But the experiments at McGill continued

on the hands of the ambitious head of psichyatry Dr. Ewan Cameron.

What he did was much more than what we had done.

We did our work strictly with the understanding that the subject could get up

at any point he whish to, and some did.

Cameron's patients were not so lucky.

The Allan Memorial Institute where he worked

began to resemble a macabre prison

where Cameron performed bizarre experiments on his psichyatric patients.

Cameron wanted to �depatern? or wipe clean his patients minds

so he could rebuild them from a blank slate.

Janine Huard whas a young mother of four

suffering from post natal depression.

I used to shiver when they told me about

"You are gona get a shock treatment tomorrow".

I used to shiver. I was so scared of it.

I would wake up in another room

all mixed up and sad

it used to make me very sad after.

You're just like a zombie walking arround.

Cameron combined shock therapy with sleep therapy.

and the repeated playing of taped messages.

Says: "Janine, Janine...

you're running away from your responsability."

"You don't want to take care of your husband and children."

All the time the same thing.

It sounds like you were being interrogated.

Yes, interrogation, but, for what purpose?

It wasn't long before CIA put Cameron's research into practice.

Many of these techniques appear in the agencies KUBARK

"counterintelligence interrogation manual".

These words are from the manual:

It's a fundamental hypothesis of this handbook

that this thecniques are, in essence, methods of producing a regression of the personality.

There is an interval, which may be extremely brief

of suspended animation

a kind of psychological shock or paralysis.

Experiencied interrogators recognises the fact when it appears.

and know that at this moment the "source" is far more open to suggestion

far likelier to comply than he was just before he experienced the shock.

El otro Dr. Shock.

At the same time as Dr. Ewen Cameron was conducting his experiments in Montreal

an exponent of another kind of shock was working not so far away.

Milton Friedman was teaching economics at the university of Chicago.

He believed economic shock therapy could encourage society

to accept a purer form of deregulated capitalism.

In october 2008

in midst of the biggest finantial crisis since 1929

Naomi Klein went to the University of Chicago

to talk about Milton Friedman.

When Milton Friedman turned 90

Bush white house held a birthday party for him.

And everyone made speeches, including Geoerge Bush.

But there was a really good speech that was given by Donald Rumsfeld.

My favourite quote on that speech, from Rumsfeld

is this. He said: "Milton is the embodyment of the truth

that ideas have consecuences".

What I want to argue here is that

the economic chaos that we're seeing right now on Wall Street

and on "Main Street", and on Washington

stands for many factors, of course, but among them

are the ideas of Milton Friedman.

Wall Street crash of 1929 led to the depression of the 30's

central to Friedmans thesis, was his oposition to the New Deal

announced by president Rooesvelt in his innaugural speech.

Our greatest primary task is to put people to work.

This is no unsolvable problem if we face it wisely and courageously

let me assert my firm belief

that the only thing we have to fear

is fear itself

Influenced by the economist John Maynard Keynes

Roosevelt started a program of public employment

to get people back to work.

Today recession is a fadding memory.

Millions of man and women have found employment

and with it confidence and hope.

It was'nt that simple. The depression lasted until World War II

But after the war, the Marshall plan spred Keyneses model

of government regulation and intervention to Europe.

His principles were wiedly accepted.

But not in the Economics Department of the Universtity of Chicago.

Milton Friedman, from this university, waged a war against the "New Deal".

Friedman was member of a group called the Mount Pellerin Society,

led by the austrian economist Friederich von Hayek.

They believed that if governments stopped providing services,

and stopped regulating markets,

economy would correct itself.

In the 50's they where seen as kranks

But the las 30 years

their ideas had become but dominant economic doctrine.

The thesis of the "Shock doctrine" is

that we've been sold a fairy tale

about how this radical policies have swept the world.

That they haven't swept the globe on the backs of freedom and democracy

but they have needed shock, they have needed crisis, they have needed states of emergency.

Milton Friedman understood the utility of crisis.

Only a crisis, actual or percieved, produces real change.

When that crisis occurs

the actions that are taken, depends on the ideas that are laying around.

La Primera Prueba:. Chile

It was in Chile, that Friedman's disciples first learned

how to exploit a large scale shock or crisis.

University of Chile

Usually, the official story tellers of neoliberalism, the official publicists

don't even mention Chile.

They start the story with Thatcher and Reagan, because it's much more flattering that way.

In the 50's and 60's

Chile's progressive developmental policies were a beacon in the region.

Government invested in health, education and industry.

American corporations were worried their investments would suffer.

In response, the US state department

began sponsoring students form Chile and the rest of South America

to study free market economics with Milton Friedman.

The University of Chicago had an agreement

with the Catholic Univesity of Chile

through which a great many Chilean students came to the University of Chicago

they were trained by us and recieved PhD

These students went back and tought in Chile.

The economics department of the Catholic University in Santiago

became a little Chicago School.

Arnold Harberger, the economist in charge of the program

described himself as a "seriously dedicated missionary".

In 1970, Salvador Allende's Popular Unity government

won the election on a platform of nationalisation of large sectors of the economy.

Chile's phone company was majority owned by US corporation ITT.

ITT headed the attempts to stop Allende to become president

it had the support of president Richard Nixon in the White House.

I was not ther, but i can

tell you what we now know to be a fact.

He ordered the CIA to prevent Allende from assuming the presidency.

Indeed, they tried to get me to lean on the chilean military

right after Allende was elected.

Despite the efforts of the CIA, Allende sworn in as president.

Richard Nixon ordered the CIA director to make the economy sream.

El Sr. Nixon es presidente de los EE.UU. y yo soy Presidente de Chile.

yo no tendr� un termino despectivo contra el Sr. Nixon ...

mientras el Sr. Nixon respete al Presidente de Chile.

Preparations began for the military coup.

Chilean "Chicago boys" started to work on

an 500 pages economic blueprint called "The brick".

With the US funding, everyting was done

to destabilize the economy.

Truck drivers went on strike,

bringing factories and shops to a standstill.

There was a failed coup atempt in june 29 of 1973.

And then on september the 11, with Pinochet General leading the army.

Assault began on the presidential palace.

El Shock de la guerra

Chile had enjoyed 41 years of uninterupted peaceful demoracy rule

that now was violently overthrown.

Pinochet and his supporters described the coup as a war.

It was certainly designed to look like one.

It was a Chilean precursor of the "Shock and awe"

Salvador Allende

Las fuerzas armadas y de orden s�lo bajo la inspiraci�n patri�tica ...

de sacar al pa�s del caos ...

que en forma aguda lo estaba precipitando el gobierno marxista de Salvador Allende.

"Chicago boys" delivered their economic blueprint "The brick" to Pinochet.

In the days that followed

more than 13.000 oponent were arrested and imprisoned.

Thousands of prisoners were held in the National Stadium. Many were tortured.

Chile became notorious around the world.

- �Cu�ntas personas? - Diez mil

LA DOCTRINA DEL SHOCK

At the begining of november, 5.000 prisoners were released.

The 900 they left behind, were transfered to other detention centers.

Less than a mont later FIFA allowed Chile

to play a World Coup cualifying in the very same stadium.

Their oponents, the Soviet Union, refused to play there

then, Chile were allowed to score into an open goal

and went trhrough to the 1974 World Coup finals.

El Shock econ�mico

With the population in shock

Pinochet imposed the policies recomended by the "Chicago boys".

removal of price controls, the sell of statal companies

the removal of import barriers and cuts to the government expenditure.

Friedman later openly acknowledge the importance of the Chilean experiments.

It was the first case in which you had a movement towards comunism

which was replaced by a movement towards free market.

It didn't work. A year later, inflation was 375% per year.

The highest in the world.

So in march 1975, Arnold Harbenger and Milton Friedman flew into Santiago.

He used a phrase that had never before been used

in a real world economic crisis.

He called for "Shock treatment"

He said that he was like a doctor

that was going to help a country that was suffering an epidemic.

And he was simply prescribing the medicine.

Friedman wrote that General Pinochet was simpatheticly attracted

to the idea of the shock treatment.

but was clearly distressed at the temporary unemployment it might cause.

It rapidly became clear that Friedman's economic policies

benefited the wealthy at the expense of the poor.

It was calculated that a family triying to live on the average wage

had to spend 74% of its income on bread.

Items such as bus fares or milk became luxuries.

Pinochet got rid of free milk in school

a move that ? controversial policy of the young education ministry in Britain

who would later become his friend.

In order to enforce these economic policies

there had to be an enemy to fear.

tampoco creo que se haya ...

triunfado totalmente sobre el marxismo.

el marxismo es como un fantasma.

cuesta mucho tomarlo ...

mejor dicho, no se puede tomar.

Friedman and Harberger argued that free market economies

went hand in hand with freedom and democracy.

But in Chile

where their ideas were implemented whithin the context of a military dictatorship

the opposite was true.

Many in latinamerica saw a direct connection

between the economic shoks that empobrished millions of people

and the epidemic of torture inflicted on those who believed in a different kind of society.

One of those was Orlando Letelier.

Letelier had been Allende's ambassador on Washington.

He spent a year on one of Pinochet's prisons.

Before being exiled back to America.

Im�genes de archivo de origen

In 1976, Letelier wrote:

"The economic plan has had to be enforced

and in the Chilean context, that could only be done by the killing of thousands,

the stablishment of concentration camps all over the country

and the jailing of more than 100.000 persons in 3 years."

Less than a month later, Letelier was killed by a car bomb.

A powerful bomb, today tore trhough a car

that was driving along. Washington's usually quiet embassy road

The chilean was Orlando Letelier

who also had been foreign minister in the last months

of the late Salvador Allende's marxist regime

Michael Townley, a member of Pinochet's secret police

was behind the bombing.

He'd entered the US on a false passport with the knowledge of the CIA.

Michael buenas noches, la opinion del poder judicial chileno hay confianza en el?

Mira yo confio plenamente en la justicia chilena ...

como patriota, y luchador antimarxista y juntista por sobre todas las cosas.

Despite his confidence, Townley was extradited to the US

and convicted for Letelier's murder.

Pinochet ruled Chile as a military dictator for 17 years.

But in a franc interview Harberger remained in denial.

You can not have a repressive government for long

within a genuinely free economic system.

In the same year was Orlando Letelier's murder

Milton Friedman was awarded the Novel price of Economics.

You people have such a distorted idea of what went on

Let me tell you some facts

Number one, I was offered two honorary degrees

by universities in Chile, before I went there

I refused to take them, because those universities

were being supported, in part, by public funds

and I did not want to appear in any way to provide any support

to the political system in Chile.

I'm not a representative of chile, amb not an adviser to Chile

I have no commitments with the government of Chile.

Friedman go home!

I'm very sorry for this incident

It could have been worse.

What I'm trying to do in "The sock doctrine"

is tell an alternative history

of how this savage stream of pure capitalism

capitalism unrestrained, came to dominate the world.

Chile wasn't the only country in South America

to adopt Chicago school policies.

Fiedman disciples held key positions in Brasil

and advised the goverment of Uruguay.

Then, on march 24 of 1976

a military coup overtrown the goverment of Isabel Per�n

in Argentina.

A Juncture of three generals took over the country

led by general Videla.

Chicago Boys landed key economic posts in the military government.

They seized the oportunity for major economic and social engineering.

Whithin a year from the coup, wages lost 40% of their value

factories closed, poverty spiraled.

Just as in Chile, peple had to be terrorized

to accepting these economic policies.

Videla learned from Pinochet's experiences.

He adopted the tactic of disappearing people.

Streaking a balance between public and private horror.

disappearences were, often, carried out in broad daylight, but could always be denied.

articular la defensa de la sociedad argentina.

Las reglas de esta guerra no convencional.

que no buscamos, ni provocamos, son distintas.

Many of the techniques used by the chilean an argentinian military

had been learned in the "US-run School of the Americas".

"Torture techniques taught

from rape, to deroben,

to torture with pointed objects,

breaking extremities, poking eyes out, branding

In Latin America there are various regimes whitch at the moment are abusing human rights

political murder, torture, deportation, imprisonment without a trial,

using the techniques that they may have learnt in this stablishment.

You may be right. If you can say that the skills that we've taught here

have been applied, I can't deny that.

The use of torture of a known enemy soldier

to gain some kind of military advantage.

I think is justifiable and smart.

But go beyond there, the use of torture techniques

purely to intimidate people, is completely wrong,

unethical and immoral.

But in Argentina and Chile

these techniques were not used just on soldiers or terrorists.

They were used on students and union members.

They were used on anyone who opposed the free market economic policies of the regime.

In 1978, the argentine Junta hosted the World Cup

The final was played in a stadium less than a mile away

from the biggest detention camp in the country

where thousands of prisoners were held into torture chambers.

Decir que con los goles, con el grito de gol ...

se tapaba la voz de los secuestrados y los gritos de los secuestrados era una realidad.

Organizaci�n extraordinaria!

Miles y miles de banderas

Miles y miles de gargantas enronquecidas

25 millones de argentinos que tienen un solo color ...

el celeste y blanco.

El f�tbol ha hecho el milagro del pa�s.

de este pa�s maravilloso ...

que nos siguen atacando aquellos que...

and Argentina took their terror regime one step further than Chile.

Among the disappared were hundreds of pregnant women.

Women who were allowed to give birth before being murdered.

De todas aquellas mujeres que estaban embarazadas ...

les permitieron tener a sus hijos ...

para una vez que nacieran, sacarselos.

y eso sucedi�, con 500.

Yo soy uno de ellos, de esos 500.

Those children, many of whom were raised by families connected to the military

were a powerful reminder of the junta's project

to reengineer an entiere society.

While the Junta was still in power

a group of mothers and grandmothers of the disappeared

started to protest at the Plaza de Mayo.

They turn detectives, searching for the disappeared children.

After the Junta collapsed, some were found

and reunited with their families.

Ocasionally, they found remains.

but mostly they found nothing.

General Videla was found guilty of murder, kidnaping and torture.

usar� una frase que no me pertenece, le pertenece ya a todo el pueblo argentino ...

Se�ores jueces, "�Nunca m�s!"

He was sentenced to life in prison.

LA DOCTRINA DEL SHOCK

These first experiments in Latin America presented Friedman and his cohorts

with a serious ideological problem.

Friedman had promised that these policies

would not just make the elites richer,

but they would create the freest possible societies.

This was a war against tirany.

Capitalism and freedom went hand in hand.

But, here we see that in the 70's

the only countries putting this ideas into practice

were military dictatorships.

Nixon had fully suported imposing

these types of brutal free market policies in South American dictatorships.

But when it came to domestic economic policy in the US

where Nixon had to worry of being reelected.

it was a very, very different story.

La Escuela de Chicago y el Mundo de habla inglesa

Friedman enjoyed a friendly relationship with Nixon.

Several of his Chicago school colleges and disciples were recruited to work for the government.

Donald Rumsfeld was one of them.

But in 1971, with the economy on a slump

Nixon turned his back on Friedman's ideas

and imposed the wage and prices control policy.

He put Rumsfeld in charge.

I have, for long, oposed to wages and prices control

I believe itinvolves a government intervention in freedom individuals, I think it's intolerable

The Keynesian policy was a success

and Nixon won a second term with a landslide majority.

It was a blow for Friedman.

Then in 1979, Margaret Thatcher was elected prime minister of Great Britain.

Her intelectual guru was Friedman's old mentor

Friederich von Hayek.

And just over a year later, Ronald Reagan

was elected president of the US.

Both Britain and America were now ruled by unabashed Friedmanites.

Margaret Thatcher program, when she came in, had for planks

cut government spending, cut tax rates,

reduce government ownership and operation of industries or regulation of industry

and have a moderate stable monetary policy

and bring down inflation.

Within the first 3 years in office

unemployment doubled in posts of the economy, leading to a wave of strikes.

Thatchers personal aproval ratings swamped a 25%

There were riots in Britain's major cities

Even Margaret Thatcher's admirers had their doubts.

The economic performance trhough the Thatcher's government have been mixed

To those waiting with ? breath

to hear that favourite media catch phrase, "the U turn"

I have only one thing to say

You turn if you want to

"The Lady" is not for turn.

Friederich von Hayek urged Thatcher

to copy Pinochet's economic Shock therapy policies

Thatcher replied:

"In Britain we got our democratic institutions,

and with the need for a high degree of consense

some of the mesures adopted in Chile are quite unacceptable."

Thatcher's profound unpopularity

seemed to be probing once again,

that free market fundamentalism was simply too unpopular

to directly harmful to too many people, to survive in a democratic state

where governing requieres geting the consent of the government

unlike a military dictatorship.

What pulled Thatcher back from the abyss and ultimately saved the project

was a crisis. Indeed. was the ultimate crisis.

It was a war.

We are here because for the first time for many years

British soverign territory has been invaded by a foreign power.

The government has now decided, that a large task force will sail

as soon as all preparations are complete.

HMS invincible will be in the leed

Most people in Britain had never even herd of the Falklands.

But when Argentina invaded the small group of islands

thousands of miles away in the south atlantic

Thatcher seized the oportunity to prove her credentials as the "Iron Lady".

War was over in less than 3 months.

As the troops returned to Britain

a wave of patriotic celebrations swept the country.

Thatcher won the 1983 election with a massive majority.

She could now push trhough a form of the economic shock therapy

witnessed in Chile.

The most powerful union in Britain was the National Union of Mineworkers.

When National Carbon tried to close pits down.

The miners went on strike.

Parts of central London are brought to a

as thousands of miners and sympathisers march trhough de city

in support of the miners strike.

It's british longest and most bitter srtrike since 1926.

And the most expensive ever.

The strike lasted almost a year.

Thatcher used every means at her disposal to destroy the union.

Eventualy the miners were defeated.

Thatcher used this victory

bring the Chicago School revolution to Britain.

A series of glossy comercials promoted a massive program of privatizations.

Thatcher sold off the steal industry,

water,

electricity,

gas,

telecomunications,

airlines,

oil.

Public housing was sold off.

Council services put down to ?

In 1986, finantial and banking services were deregulated.

It was called the Big Bang.

No one here tonight needs reminding that the "Big bang" is only a beginning

In Britain, before Thatcher

a CEO won ten times as much as the average worker

by 2007, they earned more than 100 times as much.

In the US, before Reagan

CEO's earned 43 times as much as the average worker

in 2005, they earned more than 400 times as much.

Friedman openly acknowledged the importance of Thatcher and Reagan

in the spreading of Chicago School policies around the world.

The coincidence of Thatcher and Reagan being in office at the same time

was enormously important for the public acceptance worldwide

of a different aproach to economic and monetary policy.

What I'm describing now, is a plan of hope for the long term

the march of freedom and democracy

will leave Marxism, Lenninism, on the ashes heap of history

as is has left other tiranies

which stifle the freedom and ? the self expression of the people.

There, we all know the fairy tale about the fall of comunism.

That the west of Reagan and Thatcher looked so prosperous

to the people of the former comunist block,

that they themselves demanded radical free market policies.

Now, this really is a fairy tale.

Is true that people who had been living under autoritarian comunism

genuinely wanted democracy,

and it's also true that they wanted to be able to go and buy blue jeans

and have Big Mac's, that is true.

But that does not mean that they wanted the kind of "wild west" capitalism

of oligarcs gone mad and no social protection

so many eastern conuntries actualy ended up with

and suffer under to this day.

Thatcher had done everything she could to break the power of Unions in Britain

But in 1988, she went to Poland to

to show her support to the workers union "Solidarity".

Now you see the process, and where you are now,

to where you want to be.

Strikes in Poland, let to "Solidarity" being allowed to

contest a general election in June 1989.

This triggered a wave of demonstrations throughout eastern europe.

In the past, the Soviet Union had used military force

to crush democratic movements.

But the Soviet Union had a new tipe of leader

Mijail Gorvachov

who's commited to Glasnost and Perestroika.

He talked about a third way

a gradual transition to scandinavian style social democracy.

Something between free market capitalism and comunism.

Gorvachov charmed the public and politicians of the west.

He is a bold, and determined and corageous leader.

Gorvachov stood and watched as

one by one the old comunist regimes collapsed.

At the end of the year, the most famous symbol of the division of Europe

ended tumbling down.

For Friedman and the "Chicago boys"

a hole new world opened up.

In the Soviet Union

Gorvachov was hoping to see a gradualy reform of the economy.

In 1991, Gorvachov was invited to the G7 summit in London.

He was hoping for finantial support for his gradual economic reforms.

Instead, he was told that unless he embraced a radical Shock therapy

there would be no aid at all.

The next month, there was a coup attempt against him.

A group of Comunist Part hard liners

Placed Gorvachov under house arrest in his holiday home in Crimea.

Tanks surrouded the "White House", the russian parliament.

Amid the chaos of street clashes

it was obvious that to reinforce their position

hardliners would had to resort to violence.

Such action between the people and the security forces

has not been seen since the early days of the russian revolution.

By dawn this morning, amid a sea of debris

it was becoming clear that the coup was desintegrating.

The Russian parliament building was unscaved.

The military had not made their move,

and inside, Boris Yeltsin was more powerful than ever.

This was Yeltsin's finest ever.

Grovachov was released and he returned to Moscow.

But he had lost much of his power.

In december 1991, the Soviet Union was disolved.

A profound shock for the Russian people.

Yeltsin was now in charge of economic policy for the Russian Federation.

The free market came to Russia.

There was chaos.

The adoption of Chicago School policies in Russia

marked the beginning of a new chapter in the free market crusade.

It was all Shock, no Therapy

Despite the public efforts to promote popular capitalism

the reality was a small handful of businessman made vast fortunes.

State industries were sold of at a bargain ? prices.

The russian press called Yeltsin's advisers

the "Chicago boys".

Yeltsin's shock therapy, meant that in 1992

the average russian consumed 40% less than in 1991.

A third of russians fell below the poverty line.

And wages weren't paid for months.

One expert today predicted 140 million of russians

will soon be living below the poverty line.

Corruption was rife, organized crime boomed.

Moscow became the new wild west.

The majority of russians oposed the "Chicago boys" radical vision for their country.

In march 1993, parliament made a crucial decision.

It voted to repeal the special powers that were given to Yeltsin.

Yeltsin declared the state of emergency.

The Constitutional Court ruled that it was illegal.

Semptember 21, Yeltsin took, what is known as the "Pinochet option"

and disolved parliament.

The west �threw his whip? behind Yeltsin.

We feel that Boris Yeltsin is

the best hope for democracy in Russia

Two days later, parliament voted to impeach Yeltsin

by 636 votes to 2.

Thousandos of supporters of the parliament gathered around the White House

and marched on the television station.

It looked like the supporters of parliament were winning.

Yeltsin flew back to Moskow from his holiday home.

That night 100 demonstrators were killed

as the Yeltsin authorities fought back.

On the 4th of october, he ordered troops to stop the White House

shelling the very building he had defended 2 years earlier.

Warren Christopher, the US Secretary of State said:

"The US does not usually support the suspension of parliaments

but these are extraordinary times."

Yeltsin now had absolute power.

With the advise of the "Chicago boys"

he ruled through a form of �? capitalism.

Even more, state industries were sold off

creating a new class of billionaire businessman

with huge political influence. The olgarchs.

By 1998, 80% of russian farms were bankrupt

and 70.000 state factories were closed.

In 8 years the number of people living in povertry increased by 72 million.

Meanwhile Moskow would go on

tho have more billionaires than any other city in the world.

Good afternoon. Thank you for coming. Today is my

honor to announce that I'am submitting the name of Donald Rumsfeld

to be the new Secretary of Defense.

I look forward to serving our country again.

Rumsfeld had been Secretary of Defense before, under Gerald Ford.

Then the enemy we were supposed to fear was the Soviet Union.

I'm not saying with certainty that the russians are coming

I'm saying, the terms are here.

I'm not saying the russians are 10ft tall

I'm saying they used to be 5,3 and they now are 5,9 and a half and they're growing.

Now there was a new enemy closer to home.

On september the 10th 2001,

Rumsfeld made a speech laying out his plans

to privatize much of the US military.

Milton Friedman would have been proud.

He said: "The topic today is an adversary that poses a thread,

a serious thread to the security for the USA.

This adversary is one of the worlds last bastions of central planning

it governs by dictating 5 year plans.

Perhaps this adversary sounds like the former Soviet Union,

But that enemy is gone. This adversary is closer to home.

It's the Pentagon bureaucracy.

Today, we declare war on bureaucracy."

The next day, American Airlines flight 77

crashed into the Pentagon, killing 184 people.

Think about that feeling after those attaks.

Who are these people? Where they come from?

Why do they hate us?

There was a total loss of collective narrative.

We were not living in the world that we thought we were living in.

And we kept hearing from our political leaders

that everything we thought we understood before the attacks, no longer applied.

There was a new phrase: "pre-911 thinking".

And what happened in that moment, is that suddenly new stories magically appeared.

We were in a "clash of civilizations", that's the world we suddenly lived in.

That there was an "axis of evil", that we were fighting a war against terror.

This abstract unwinable war

had huge economic consecuences.

Before 2001, Homeland Security barely registered as an industry.

Today it is bigger than Holywood an the music industry combined.

Between september 11 2001 and 2006

the department of Homeland Security handed out 130 billion dollars

to private contractors.

This is the disaster capitalism complex.

A new economy built on fear.

This would be a monumental struggle

of good versus evil

The best defense against terror

is a global offensive against terror

wherever it might be found.

The first phase of this war, was the bombing of Afghanistan.

The taliban government was quikcly overthrown.

The aftermath of the war was more complicated.

Our fight against terrorism began in Afghanistan

but it will not end there.

We're looking at detainees that we can use for collecting intelligence.

Guantanamo was the first time that the techniques of the KUBARK manual

were explicitly and publicly being used by american forces.

Officially sanctioned by the White House

y transmitido abiertamente por la televisi�n en todo el mundo.

Isolation, both physical and psychological,

must be maintained from the moment of apprehension.

The capacity of resistance is diminished by disorientation

Prisoners should maintain silence at all times.

They should never be allowed to speak to each other.

3 of the prisoners were Asif Iqbal, Rhuhel Ahmed

and Shafiq Rasul, from Tipton, in England.

They spent more than 2 years in Guantanamo

before being released without charge.

Mentally yeah. You couldn't speak to nobody, you couldn't do nothing, you couldn't stand up.

Sitting there, you being your thought:

"What's going on? Where the hell I'm I?

Are we gonna be stayin here for the rest of our lives? Are we going back home?

Will we se our family again?"

Of the 779 prisoners that had been held in the Guantanamo bay

only 3 have ever been convicted of any offense.

Now, the only thing I know for certain is that these are bad people

It was a message to the hole world, and the message was clear:

This is wat happens to you if you get in our way.

The war on terror is not about one man

and it is not about one country.

There was many justifications given for the invasion of Irak.

But if US had really wanted to attack a country

where the leaders of al-Qaeda were thought to be hidding

that had nuclear weapons and was selling nuclear technology to other countries

then, Pakistan would have been the obvious choice.

It had close connections to the Taliban, and was being ruled by a military dictator.

Instead, George Bush chose to target Irak.

A country with the third largest oil reserves in the world.

Now about the Defense Department war plan

It is not like the other Gulf war

it's more along the line to the Panam� invasion in 1989

CBS news is been told it would start on what's called "A-day".

A as in "airstrikes", airstrikes so devastating

they would leave Saddam's soldiers unabled or unwilling to play.

The idea is to rain down the thunder so hard as to create, quote: "Shock and awe"

If the Pentagon sticks to its card war pan, one day on march

Airforce and Navy will launch between 3 and 400 cruise missiles

at targets in Irak.

More than were launched in the entire 40 days of the first Gulf War.

The size of this has been ever seen before.

never been contemplated before.

Halla Ullman is one of the authors of the "Shock and awe" concept,

which relies on a large number of "precission guided weapons".

... so that you have this simultaneous effect rather like nuclear weapons in Hiroshima...

not taking days or weeks, but a minute.

You also take the city down, what I mean, you get rid of their power, their water

And you begin this relentless campaign to wear them down

so that in 2,3,4,5 days

they're physically, emotionally, and psychologically exhausted.

Last night, a square mile in central Baghdad seemed like hell on earth.

During the first wave of the bombing

citizens of Baghdad suffered the version of "sensorial deprivation"

described in the KUBARK manual.

In the chaos that followed the overthrown of Saddam Hussein

the US did little to stop the looting.

Some US officials even thought it gave them a head start

dismantling the Iraqui state.

John Agresto, director of higher education reconstruction

said he saw the looting of schools as the "oportunity for a clean start".

In fact, before sanctions

Irak had the best education system in the region.

89% of the Iraquis were literate.

By contrast, in New Mexico, John Agresto's home state

46% of the population were functionaly illiterate.

Irak had three distinct forms of shock

they were all working toghether and reinforcing each other.

You had the shock of the war,

which was immediatly followed by economic Shock Therapy

imposed under Paul Bremer.

And as resistace to that economic transformation,

very rapid economic shock, grew

you had the shock of enforcement, including torture.

Three different kinds of shock.

In may 2003

Paul Bremer was appointed US envoy to Irak.

Two weeks after he arrived

declared the country "open for busines".

We consider that the coalition has very broad authorities

to determine the direction of the Iraqui economy.

Bremer knew little of Irak

but he knew about disaster capitalism.

He had launched "Crisis Consulting Practice"

at the start of the Homeland Security boom.

Today is a very important day in Baghdad

Bremer spent the first four months

passing classic Chicago School laws.

Rumsfeld described Irak

as having some of the most enlightened and inviting tax and investment laws in the free world.

One of the first acts of Bremer

was to fire 500.000 state workers.

This was partly an act of De-Ba'athification

by slashing governments, was also �? Friedman.

Money was promised for reconstruction.

Our investment in the future of Afghanistan and Irak

it's the greatest commitment of it's kind since the Marshall plan.

But in fact it was just the opposite.

Whereas the Marshall plan was inended to boost european industries

USA money in Irak was spent on US corporations.

If work came to iraquis

came at the bottom of a series of subcontractors.

"Creative Associates" recieved contratcs worth 100 million dollars

to draft the curriculum and print the new textbooks for the new education system.

Management and technology consultant "Bearing Point"

was awarded contracts worth 240 million dollars

to build a market driven system in Irak

North Carolina based RTI (Research Triangle Institute)

recieved contracts worth 466 million dollars

to advise on bringing democracy to Irak.

And "Halliburton" was awarded 20 billion dollars in cost plus Iraqui contracts.

"Parsons" was handed 186 million dollars to build 142 health clinics.

Only 6 were ever completed.

Basic electricity and water suplies hardly improved

despite billions being spent in the 4 first years.

We're gonna succede here. And when we succede here

we'll have done something important. Not just for 25 million of Iraquis

We will have done something it serves western interests in this whole region

Even the new Iraqui currency was printed abroad.

Let me show you an example of this notes.

US even paid private contractors to monitor the work of the private contractors

who had won contracts.

WE WANT JOB!

I was in Baghdad in 2004

and this is the period when bombs started to go off regularly in Baghdad.

In fact, the night that I arrived, a bomb went off really near our hotel

But what was really striking to me in this period

was that despite the violence, despite the chaos, the next day

Iraquis were out on the street protesting.

19 killed and 100 injured in Najaf

And what they were demanding at this time, was elections.

Their right to actually have a say in what the post Saddam era would look like

In the early days of the occupation, the protests were peaceful.

But as time went on, and the protests didn't have an effect

More and more iraquis joined the armed resistance.

The violence spun out of control.

As in South America 3 decades earlier

bodies were often dumped by the road side as a warning to the others.

These were iraquis disapeared.

Extremely aggressive measures were needed to supress the oposition.

The first 3 and a half years of the occupation

61.500 iraquis were captured.

By spring 2007, 19.000 remained in custody.

In prison they were interogated using techniques

that could be traced to those devised by the CIA

from Ewan Cameron's experiments in the 50's.

According to the Red Cross

US military officials admited

that between 70 and 90% of arrests in Irak were mistakes

The chaos in Irak seems like a defeat for shock therapy

But in Irak, disaster capitalism moved on.

Now, the disaster itself provided the oportunity for profit.

US military spending has almost doubled since 2001.

Nearing 700 billion dollars per year.

As long ago in 1961, president Eisenhower, not a noted liberal

warned of the danger of a too powerful military.

On this conjunction of an immense military establishment

and a large arms industry is new in the american experience

and we must guard against the acquisition of unwanted influences

wether sought or unsought

by the military industrial complex.

We must never let the weight that this combination

endanger our liberties or democratic processes.

The war in Irak is the most privatized war in modern history.

The green zone in Baghdad is an extreme version

of what is happening around the world.

A privatized, secur world protected from the chaos outside.

In 1991, in the first gulf war

for every 100 soldiers there was 1 military contractor.

In 2003, at the beginning of the war in Irak

for every 100 soldiers there were 10 contractors.

At 2006, for every 100 soldiers there were 33 contractors.

A year later, for every 100 soldiers there were 70 contractors.

By july 2007,

there were more contractors than soldiers in Irak.

This was going beyond what Milton Friedman had dared to hope.

The only things I would not denationalize

are army forces, the courts,

and some of your roads and highways.

One of the most high profile contractors was

"Blackwater USA".

During the april 2004 uprising in Najaf

Blackwater assumed command over US Marines.

Dozens of iraquis were killed during the operation.

US had indemnified the private contractors against any of iraqui laws.

So they were operating in a law free bubble, a little like Guantanamo.

I asked your Secretary of Defense a couple months ago

what law governs their actions.

I was gona ask him. Go ahead.

Help!

Just as Cameron's Shock therapy left his patients confused and broken,

so the multiple shocks inflicted on Irak

reduced the country to a lawless, violent, sectarian mess.

By the time of Saddam Hussein's execution in 2006

1000 iraquis would've been killed each week.

By april 2007, the UN high comission for refugees (ACNUR)

estimated that 4 million people had had to leave their homes,

hundreds of thousands of iraquis had died.

I think the historians will write, very clearly,

that we did a great and noble thing here.

When hurricane Katrina hit New Orleans in agust 2005

the world was shocked to witness a sort of "disaster apartheid".

The economically secured drove out of town

while tens of thousans of the vulnerable were stranded

with little or no help from the state.

I went to New Orleans while the city was still underwater

and what I saw was that what I had witnessed in Irak, was repeating

not in the aftermath of a war, but in the aftermath of a tremendous natural disaster.

Milton Friedman died in 2006,

his very last public policy recommendation

was an "article" that he wote for the Wall Street Journal

3 months after Katrina.

He said: "Those New Orleans schools are in ruins

as are the homes of the children ho had attended there.

The children are now scattered all over the country.

This is a tragedy, but this is also an oportunity to radically reform

the Education System".

He was aplicating the hole sell privatisation of the school system of this city.

Was his sort of, Swan song.

I witnessed a similar process in Sri Lanka in the aftermath of the 2004 tsunami.

People who'd lived on the beaches for generations

were prevented from returning

so that the land could be privatized and sold off to luxury hotels.

And this is exactly what I mean by the Shock Doctrine-

The systematic raiding of the public sphere

in the aftermath of a disaster.

When people are too focused on the emergency on their daily concerns

to protect their interests.

Maybe the first act of resistence

is to refuse our collective memory to be wiped.

In 2008, Naomi Klein vidited Villa Grimaldi

with Isabel Morel, the widow of Orlando Letelier.

Villa Grimaldi is a memorial to the cruelty of the Pinochet regime

and to his eventual defeat.

It's not that I loved Pinochet

but I think that he was our teacher in many things.

We learned about evil.

In 1998, Pinochet was arrested while he was in London.

His old allied Margaret Thatcer stood by his side.

I know how much I owe to you.

It took 30 years for the economic experiment

originally test driven by Pinochet to make its way around the globe to Irak.

But the similarities between past and present are startling.

Between Pinochet's concentration camps

and Bush's Guant�namo detention center.

Between the disapeared in Chile and those in Irak.

Between the experiments of Ewen Cameron

and the torture �? on the prisoners of Abu Ghraib.

He erased all the past, that's why he gave electroshock,

all the past from the patient, and he would implant new ideas.

But Janine resisted.

In 1998, the CIA agreed to pay compensations to Janine

and other victims of Ewan Cameron's experiments.

Janine: are you proud that they tried to break you

and that you had fought so hard, and won?

In a way I am, in a way, I am.

Because I must have some will power seeds in me.

It's very very hard to fight a government.

People would tell me: "Janine, you don't fight the government.

What's the matter with you? They're too big."

But I had faith that we would win.

It is in the nature of unregulated markets, to be volatile.

Bubbles are allowed to inflate, and then, inevitably, they burst.

Since the deregulation of the "Big Bang" in the 80's

there have been a number of market shocks.

In 1987 there was "black monday".

Markets fell spectacularly.

It was the largest one day percentage decline in stock market history.

In 1992, there was "black wednesday".

When currency speculators made fortunes betting against the Pound.

In 1997, there was the Asian �contraction?.

In one year, 600 billion dollars disappeared from the stock markets of Asia.

And then in september 2008

the finacial markets imploded.

The market is not functioning properly.

There has been a wide spread loss of confidence.

On september the 15th, "Lehman brothers" filed for chapter 11 bankrupcy protection

yet only one week later

it was announced that workers in their New York offices, would share 2.5 billion dollars in bonuses.

It is estimated that Wall Street firms paid 18,4 billion dollars in bonuses last year (2008).

The year of the crash.

Despite retoric of populist rather taking on the fat cats

and standing up for the little guy and saving Main street

Not Wall street

We are witnessing a transfer of wealth of unfathomable size.

It is a transfer of wealth from public hands

from the hands of government, collected from regular people

in the form of taxes

into the hands of the wealthiest corporations and individuals in the world.

Needless to say, the very individuals and corporations that created this crisis.

[Alan Greenspan - Former President of US ferderal reserve]

We are in the midsts of a one in a century credit tsunami.

I found a flaw, I don't know how significant or permanent it is

but I've been very distressed by that fact.

In the US it was the financial crisis that secured Obama's victory.

Americans wanted a change of course.

This crisis is clearly understood, by almost everyone

as being the direct result of this particular ideology

of deregulation an privatisation.

The scale of the crisis offers the hope of change.

The shock doctrine as a strategy

relies on us not knowing about it, for it to work.

What I find most hopeful, about the current economic crisis

is that this tactic is getting tired.

Because the element of surprise is no longer there.

We're onto them and it's not working.

We're becoming shock resistant.

The last time the world suffered a financial crisis as severe as this

people turned to the Keynesian policies of the New Deal (1933).

let me assert my firm belief that the only thing we have to fear

it's fear itself

More than 2 million people came to washington

to hear Obama's innauguration speech.

Many journalists made comparisons with FDR

It's been a lot of talk recently

about comparing Obama to Franklin Delano Roosevelt.

So I want to talk a little bit about FDR, because there is this great FDR story

(it could be an aprocryphal one)

When he would be visited by some progressist organisation, or union

and they would be proposing some new progressist policy

that they wanted to be part of the New Deal

he would hear them out, he would listen to them, and in the end, he would say:

"Now go out there and make me do it".

And they did. In 1937,which was a �? year for the New Deal

You know how many strikes they were in this country?

4.740 strikes, lasting an average of 20 days.

Do you know how many strikes they were in 2007?

21.

Now, the other reason to remember this history of struggle

is that it tells us something very important.

Something that we need to remeber at this moment, when so much is at stake.

It teaches us that if we want responses to this economic crisis

to leave us to a world that is healthier, that is more just, that is more peaceful

we are going to have to go out there, and make them do it. Thank you.

Subtitulado para Subdivx por Damian 667 y Astroboy7 translated by NoOne