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A state of shock ...
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It's not just what happens to us when something bad happens.
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It's what happens to us when we lose our narrative...
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When whe lose our history, when we become disoriented.
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What keeps us oriented, and alert, and out of shock...
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Is our history.
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So, period of crisis, like the one we are in
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is a very good time to think about history
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to think about continuities, to think about roots.
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It's a good time to place ourselves
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in the longer human story of struggle.
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THE SHOCK DOCTRINE
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Based on Naomi Klein's Book
Subtitulado para Subdivx por Damian 667
y Astroboy7 translated by NoOne
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Our story begins on June 1st of 1951
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when representatives of western intelligence agencies
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secretly met with academics, at Montreal's Ritz-Carlton hotel.
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This meeting contributed to military funded research
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into the effects of sensory deprivation at McGill university.
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Sensory deprivation really is a way of producing extreme monotony.
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Causes loss of critical capacity
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thinking is less clear
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and the subjects complain that they can't even daydream.
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And when you have colege students that can't daydream. You are ahead the bad way.
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I began to think while we were doing our experiments, that it's possible that
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something that involves physical disconfort, or even pain
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might be more tolerable than simply the deprivation conditions that we studied.
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Hebb decided to stop work on the research.
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I had no idea when I suggested that
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what a vicious weapon, potentialy vicious weapon this could be.
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But the experiments at McGill continued
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on the hands of the ambitious head of psichyatry Dr. Ewan Cameron.
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What he did was much more than what we had done.
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We did our work strictly with the understanding that the subject could get up
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at any point he whish to, and some did.
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Cameron's patients were not so lucky.
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The Allan Memorial Institute where he worked
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began to resemble a macabre prison
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where Cameron performed bizarre experiments on his psichyatric patients.
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Cameron wanted to �depatern? or wipe clean his patients minds
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so he could rebuild them from a blank slate.
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Janine Huard whas a young mother of four
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suffering from post natal depression.
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I used to shiver when they told me about
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"You are gona get a shock treatment tomorrow".
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I used to shiver. I was so scared of it.
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I would wake up in another room
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all mixed up and sad
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it used to make me very sad after.
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You're just like a zombie walking arround.
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Cameron combined shock therapy with sleep therapy.
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and the repeated playing of taped messages.
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Says: "Janine, Janine...
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you're running away from your responsability."
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"You don't want to take care of your husband and children."
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All the time the same thing.
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It sounds like you were being interrogated.
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Yes, interrogation, but, for what purpose?
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It wasn't long before CIA put Cameron's research into practice.
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Many of these techniques appear in the agencies KUBARK
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"counterintelligence interrogation manual".
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These words are from the manual:
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It's a fundamental hypothesis of this handbook
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that this thecniques are, in essence, methods of producing a regression of the personality.
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There is an interval, which may be extremely brief
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of suspended animation
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a kind of psychological shock or paralysis.
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Experiencied interrogators recognises the fact when it appears.
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and know that at this moment the "source" is far more open to suggestion
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far likelier to comply than he was just before he experienced the shock.
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El otro Dr. Shock.
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At the same time as Dr. Ewen Cameron was conducting his experiments in Montreal
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an exponent of another kind of shock was working not so far away.
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Milton Friedman was teaching economics at the university of Chicago.
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He believed economic shock therapy could encourage society
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to accept a purer form of deregulated capitalism.
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In october 2008
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in midst of the biggest finantial crisis since 1929
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Naomi Klein went to the University of Chicago
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to talk about Milton Friedman.
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When Milton Friedman turned 90
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Bush white house held a birthday party for him.
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And everyone made speeches, including Geoerge Bush.
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But there was a really good speech that was given by Donald Rumsfeld.
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My favourite quote on that speech, from Rumsfeld
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is this. He said: "Milton is the embodyment of the truth
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that ideas have consecuences".
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What I want to argue here is that
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the economic chaos that we're seeing right now on Wall Street
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and on "Main Street", and on Washington
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stands for many factors, of course, but among them
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are the ideas of Milton Friedman.
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Wall Street crash of 1929 led to the depression of the 30's
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central to Friedmans thesis, was his oposition to the New Deal
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announced by president Rooesvelt in his innaugural speech.
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Our greatest primary task is to put people to work.
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This is no unsolvable problem if we face it wisely and courageously
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let me assert my firm belief
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that the only thing we have to fear
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is fear itself
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Influenced by the economist John Maynard Keynes
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Roosevelt started a program of public employment
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to get people back to work.
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Today recession is a fadding memory.
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Millions of man and women have found employment
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and with it confidence and hope.
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It was'nt that simple. The depression lasted until World War II
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But after the war, the Marshall plan spred Keyneses model
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of government regulation and intervention to Europe.
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His principles were wiedly accepted.
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But not in the Economics Department of the Universtity of Chicago.
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Milton Friedman, from this university, waged a war against the "New Deal".
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Friedman was member of a group called the Mount Pellerin Society,
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led by the austrian economist Friederich von Hayek.
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They believed that if governments stopped providing services,
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and stopped regulating markets,
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economy would correct itself.
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In the 50's they where seen as kranks
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But the las 30 years
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their ideas had become but dominant economic doctrine.
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The thesis of the "Shock doctrine" is
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that we've been sold a fairy tale
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about how this radical policies have swept the world.
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That they haven't swept the globe on the backs of freedom and democracy
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but they have needed shock, they have needed crisis, they have needed states of emergency.
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Milton Friedman understood the utility of crisis.
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Only a crisis, actual or percieved, produces real change.
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When that crisis occurs
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the actions that are taken, depends on the ideas that are laying around.
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La Primera Prueba:. Chile i>
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It was in Chile, that Friedman's disciples first learned
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how to exploit a large scale shock or crisis.
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University of Chile
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Usually, the official story tellers of neoliberalism, the official publicists
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don't even mention Chile.
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They start the story with Thatcher and Reagan, because it's much more flattering that way.
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In the 50's and 60's
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Chile's progressive developmental policies were a beacon in the region.
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Government invested in health, education and industry.
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American corporations were worried their investments would suffer.
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In response, the US state department
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began sponsoring students form Chile and the rest of South America
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to study free market economics with Milton Friedman.
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The University of Chicago had an agreement
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with the Catholic Univesity of Chile
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through which a great many Chilean students came to the University of Chicago
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they were trained by us and recieved PhD
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These students went back and tought in Chile.
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The economics department of the Catholic University in Santiago
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became a little Chicago School.
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Arnold Harberger, the economist in charge of the program
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described himself as a "seriously dedicated missionary".
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In 1970, Salvador Allende's Popular Unity government
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won the election on a platform of nationalisation of large sectors of the economy.
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Chile's phone company was majority owned by US corporation ITT.
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ITT headed the attempts to stop Allende to become president
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it had the support of president Richard Nixon in the White House.
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I was not ther, but i can
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tell you what we now know to be a fact.
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He ordered the CIA to prevent Allende from assuming the presidency.
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Indeed, they tried to get me to lean on the chilean military
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right after Allende was elected.
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Despite the efforts of the CIA, Allende sworn in as president.
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Richard Nixon ordered the CIA director to make the economy sream.
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El Sr. Nixon es presidente de los EE.UU.
y yo soy Presidente de Chile.
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yo no tendr� un termino despectivo
contra el Sr. Nixon ... i>
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mientras el Sr. Nixon respete
al Presidente de Chile.
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Preparations began for the military coup.
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Chilean "Chicago boys" started to work on
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an 500 pages economic blueprint called "The brick".
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With the US funding, everyting was done
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to destabilize the economy.
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Truck drivers went on strike,
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bringing factories and shops to a standstill.
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There was a failed coup atempt in june 29 of 1973.
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And then on september the 11, with Pinochet General leading the army.
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Assault began on the presidential palace.
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El Shock de la guerra i>
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Chile had enjoyed 41 years of uninterupted peaceful demoracy rule
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that now was violently overthrown.
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Pinochet and his supporters described the coup as a war.
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It was certainly designed to look like one.
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It was a Chilean precursor of the "Shock and awe"
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Salvador Allende i>
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Las fuerzas armadas y de orden s�lo
bajo la inspiraci�n patri�tica ... i>
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de sacar al pa�s del caos ... i>
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que en forma aguda lo estaba precipitando
el gobierno marxista de Salvador Allende. i>
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"Chicago boys" delivered their economic blueprint "The brick" to Pinochet.
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In the days that followed
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more than 13.000 oponent were arrested and imprisoned.
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Thousands of prisoners were held in the National Stadium. Many were tortured.
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Chile became notorious around the world.
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- �Cu�ntas personas?
- Diez mil
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LA DOCTRINA DEL SHOCK i>
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At the begining of november, 5.000 prisoners were released.
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The 900 they left behind, were transfered to other detention centers.
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Less than a mont later FIFA allowed Chile
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to play a World Coup cualifying in the very same stadium.
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Their oponents, the Soviet Union, refused to play there
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then, Chile were allowed to score into an open goal
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and went trhrough to the 1974 World Coup finals.
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El Shock econ�mico i>
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With the population in shock
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Pinochet imposed the policies recomended by the "Chicago boys".
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removal of price controls, the sell of statal companies
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the removal of import barriers and cuts to the government expenditure.
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Friedman later openly acknowledge the importance of the Chilean experiments.
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It was the first case in which you had a movement towards comunism
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which was replaced by a movement towards free market.
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It didn't work. A year later, inflation was 375% per year.
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The highest in the world.
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So in march 1975, Arnold Harbenger and Milton Friedman flew into Santiago.
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He used a phrase that had never before been used
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in a real world economic crisis.
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He called for "Shock treatment"
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He said that he was like a doctor
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that was going to help a country that was suffering an epidemic.
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And he was simply prescribing the medicine.
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Friedman wrote that General Pinochet was simpatheticly attracted
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to the idea of the shock treatment.
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but was clearly distressed at the temporary unemployment it might cause.
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It rapidly became clear that Friedman's economic policies
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benefited the wealthy at the expense of the poor.
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It was calculated that a family triying to live on the average wage
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had to spend 74% of its income on bread.
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Items such as bus fares or milk became luxuries.
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Pinochet got rid of free milk in school
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a move that ? controversial policy of the young education ministry in Britain
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who would later become his friend.
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In order to enforce these economic policies
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there had to be an enemy to fear.
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tampoco creo que
se haya ... i>
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triunfado totalmente
sobre el marxismo. i>
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el marxismo es como un fantasma. i>
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cuesta mucho tomarlo ... i>
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mejor dicho,
no se puede tomar. i>
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Friedman and Harberger argued that free market economies
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went hand in hand with freedom and democracy.
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But in Chile
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where their ideas were implemented whithin the context of a military dictatorship
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the opposite was true.
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Many in latinamerica saw a direct connection
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between the economic shoks that empobrished millions of people
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and the epidemic of torture inflicted on those who believed in a different kind of society.
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One of those was Orlando Letelier.
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Letelier had been Allende's ambassador on Washington.
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He spent a year on one of Pinochet's prisons.
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Before being exiled back to America.
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00:18:44,950 --> 00:18:46,810
Im�genes de archivo de origen i>
249
00:18:48,720 --> 00:18:51,410
In 1976, Letelier wrote:
250
00:18:52,620 --> 00:18:55,290
"The economic plan has had to be enforced
251
00:18:55,500 --> 00:18:59,840
and in the Chilean context, that could only be done by the killing of thousands,
252
00:19:00,040 --> 00:19:03,430
the stablishment of concentration camps all over the country
253
00:19:03,630 --> 00:19:08,190
and the jailing of more than 100.000 persons in 3 years."
254
00:19:22,530 --> 00:19:26,820
Less than a month later, Letelier was killed by a car bomb.
255
00:19:28,470 --> 00:19:31,310
A powerful bomb, today tore trhough a car
256
00:19:31,510 --> 00:19:35,290
that was driving along. Washington's usually quiet embassy road
257
00:19:35,700 --> 00:19:37,480
The chilean was Orlando Letelier
258
00:19:37,680 --> 00:19:40,370
who also had been foreign minister in the last months
259
00:19:40,570 --> 00:19:43,640
of the late Salvador Allende's marxist regime
260
00:19:45,720 --> 00:19:48,340
Michael Townley, a member of Pinochet's secret police
261
00:19:48,540 --> 00:19:50,500
was behind the bombing.
262
00:19:51,210 --> 00:19:54,450
He'd entered the US on a false passport with the knowledge of the CIA.
263
00:19:57,800 --> 00:20:00,580
Michael buenas noches, la opinion del poder
judicial chileno hay confianza en el? i>
264
00:20:00,780 --> 00:20:04,010
Mira yo confio plenamente
en la justicia chilena ... i>
265
00:20:04,210 --> 00:20:08,440
como patriota, y luchador antimarxista
y juntista por sobre todas las cosas. i>
266
00:20:10,450 --> 00:20:14,300
Despite his confidence, Townley was extradited to the US
267
00:20:14,500 --> 00:20:17,190
and convicted for Letelier's murder.
268
00:20:18,830 --> 00:20:22,420
Pinochet ruled Chile as a military dictator for 17 years.
269
00:20:22,720 --> 00:20:26,540
But in a franc interview Harberger remained in denial.
270
00:20:26,840 --> 00:20:32,580
You can not have a repressive government for long
271
00:20:32,810 --> 00:20:36,500
within a genuinely free economic system.
272
00:20:38,900 --> 00:20:41,220
In the same year was Orlando Letelier's murder
273
00:20:41,820 --> 00:20:45,850
Milton Friedman was awarded the Novel price of Economics.
274
00:20:47,310 --> 00:20:49,680
You people have such a distorted idea of what went on
275
00:20:49,880 --> 00:20:51,670
Let me tell you some facts
276
00:20:52,080 --> 00:20:55,410
Number one, I was offered two honorary degrees
277
00:20:55,610 --> 00:20:57,780
by universities in Chile, before I went there
278
00:20:57,980 --> 00:21:01,450
I refused to take them, because those universities
279
00:21:01,650 --> 00:21:04,460
were being supported, in part, by public funds
280
00:21:04,660 --> 00:21:08,760
and I did not want to appear in any way to provide any support
281
00:21:08,960 --> 00:21:09,960
to the political system in Chile.
282
00:21:10,360 --> 00:21:13,280
I'm not a representative of chile, amb not an adviser to Chile
283
00:21:13,480 --> 00:21:15,610
I have no commitments with the government of Chile.
284
00:21:17,510 --> 00:21:19,980
285
00:21:21,480 --> 00:21:25,260
286
00:21:27,400 --> 00:21:29,150
Friedman go home!
287
00:21:39,530 --> 00:21:42,080
I'm very sorry for this incident
288
00:21:42,580 --> 00:21:45,010
It could have been worse.
289
00:21:51,440 --> 00:21:53,430
290
00:21:54,030 --> 00:21:56,340
What I'm trying to do in "The sock doctrine"
291
00:21:56,540 --> 00:21:58,780
is tell an alternative history
292
00:21:58,980 --> 00:22:04,680
of how this savage stream of pure capitalism
293
00:22:05,490 --> 00:22:09,100
capitalism unrestrained, came to dominate the world.
294
00:22:09,820 --> 00:22:12,000
Chile wasn't the only country in South America
295
00:22:12,200 --> 00:22:14,420
to adopt Chicago school policies.
296
00:22:14,620 --> 00:22:17,390
Fiedman disciples held key positions in Brasil
297
00:22:17,590 --> 00:22:20,160
and advised the goverment of Uruguay.
298
00:22:20,360 --> 00:22:23,310
Then, on march 24 of 1976
299
00:22:23,510 --> 00:22:26,140
a military coup overtrown the goverment of Isabel Per�n
300
00:22:26,340 --> 00:22:28,140
in Argentina.
301
00:22:29,640 --> 00:22:32,030
A Juncture of three generals took over the country
302
00:22:32,230 --> 00:22:34,500
led by general Videla.
303
00:22:36,650 --> 00:22:40,370
Chicago Boys landed key economic posts in the military government.
304
00:22:40,990 --> 00:22:45,370
They seized the oportunity for major economic and social engineering.
305
00:22:46,310 --> 00:22:50,570
Whithin a year from the coup, wages lost 40% of their value
306
00:22:50,770 --> 00:22:53,880
factories closed, poverty spiraled.
307
00:22:55,470 --> 00:22:57,680
Just as in Chile, peple had to be terrorized
308
00:22:57,880 --> 00:23:00,270
to accepting these economic policies.
309
00:23:01,130 --> 00:23:03,700
Videla learned from Pinochet's experiences.
310
00:23:03,900 --> 00:23:06,750
He adopted the tactic of disappearing people.
311
00:23:07,520 --> 00:23:10,220
Streaking a balance between public and private horror.
312
00:23:10,420 --> 00:23:15,350
disappearences were, often, carried out in broad daylight, but could always be denied.
313
00:23:23,920 --> 00:23:28,270
articular la defensa
de la sociedad argentina. i>
314
00:23:30,290 --> 00:23:34,360
Las reglas de esta guerra
no convencional. i>
315
00:23:34,560 --> 00:23:39,280
que no buscamos,
ni provocamos, son distintas. i>
316
00:23:40,810 --> 00:23:44,120
Many of the techniques used by the chilean an argentinian military
317
00:23:44,320 --> 00:23:47,810
had been learned in the "US-run School of the Americas".
318
00:23:48,210 --> 00:23:50,020
"Torture techniques taught
319
00:23:50,220 --> 00:23:54,430
from rape, to deroben,
320
00:23:54,830 --> 00:23:59,250
to torture with pointed objects,
321
00:23:59,650 --> 00:24:04,160
breaking extremities, poking eyes out, branding
322
00:24:04,670 --> 00:24:08,250
In Latin America there are various regimes whitch at the moment are abusing human rights
323
00:24:08,450 --> 00:24:12,360
political murder, torture, deportation, imprisonment without a trial,
324
00:24:12,660 --> 00:24:15,550
using the techniques that they may have learnt in this stablishment.
325
00:24:18,080 --> 00:24:21,920
You may be right. If you can say that the skills that we've taught here
326
00:24:22,120 --> 00:24:24,740
have been applied, I can't deny that.
327
00:24:26,260 --> 00:24:30,630
The use of torture of a known enemy soldier
328
00:24:30,830 --> 00:24:33,560
to gain some kind of military advantage.
329
00:24:33,760 --> 00:24:36,730
I think is justifiable and smart.
330
00:24:37,430 --> 00:24:41,440
But go beyond there, the use of torture techniques
331
00:24:41,640 --> 00:24:44,810
purely to intimidate people, is completely wrong,
332
00:24:45,410 --> 00:24:47,230
unethical and immoral.
333
00:24:48,880 --> 00:24:50,590
But in Argentina and Chile
334
00:24:50,790 --> 00:24:54,360
these techniques were not used just on soldiers or terrorists.
335
00:24:54,760 --> 00:24:57,570
They were used on students and union members.
336
00:24:57,770 --> 00:25:02,770
They were used on anyone who opposed the free market economic policies of the regime.
337
00:25:15,900 --> 00:25:20,430
In 1978, the argentine Junta hosted the World Cup
338
00:25:22,550 --> 00:25:25,240
The final was played in a stadium less than a mile away
339
00:25:25,440 --> 00:25:27,660
from the biggest detention camp in the country
340
00:25:27,860 --> 00:25:30,900
where thousands of prisoners were held into torture chambers.
341
00:25:31,100 --> 00:25:33,750
Decir que con los goles, con el grito de gol ...
342
00:25:34,150 --> 00:25:39,790
se tapaba la voz de los secuestrados y los gritos
de los secuestrados era una realidad.
343
00:25:39,990 --> 00:25:42,140
Organizaci�n extraordinaria! i>
344
00:25:42,440 --> 00:25:44,590
Miles y miles de banderas i>
345
00:25:45,110 --> 00:25:48,270
Miles y miles de gargantas enronquecidas i>
346
00:25:48,570 --> 00:25:52,800
25 millones de argentinos
que tienen un solo color ... i>
347
00:25:53,480 --> 00:25:55,140
el celeste y blanco. i>
348
00:25:55,340 --> 00:25:58,230
El f�tbol ha hecho
el milagro del pa�s. i>
349
00:25:58,600 --> 00:26:00,070
de este pa�s maravilloso ... i>
350
00:26:00,260 --> 00:26:02,890
que nos siguen atacando aquellos que... i>
351
00:26:03,590 --> 00:26:07,880
and Argentina took their terror regime one step further than Chile.
352
00:26:08,280 --> 00:26:11,240
Among the disappared were hundreds of pregnant women.
353
00:26:11,440 --> 00:26:14,890
Women who were allowed to give birth before being murdered.
354
00:26:15,420 --> 00:26:19,370
De todas aquellas mujeres
que estaban embarazadas ...
355
00:26:19,770 --> 00:26:21,870
les permitieron tener a sus hijos ...
356
00:26:22,070 --> 00:26:25,440
para una vez que nacieran,
sacarselos.
357
00:26:25,640 --> 00:26:29,490
y eso sucedi�, con 500.
358
00:26:30,290 --> 00:26:33,710
Yo soy uno de ellos, de esos 500.
359
00:26:36,150 --> 00:26:40,620
Those children, many of whom were raised by families connected to the military
360
00:26:40,820 --> 00:26:43,370
were a powerful reminder of the junta's project
361
00:26:43,570 --> 00:26:46,470
to reengineer an entiere society.
362
00:26:53,520 --> 00:26:55,390
While the Junta was still in power
363
00:26:55,590 --> 00:26:58,040
a group of mothers and grandmothers of the disappeared
364
00:26:58,240 --> 00:27:01,020
started to protest at the Plaza de Mayo.
365
00:27:05,720 --> 00:27:09,570
They turn detectives, searching for the disappeared children.
366
00:27:11,600 --> 00:27:13,990
After the Junta collapsed, some were found
367
00:27:14,190 --> 00:27:16,410
and reunited with their families.
368
00:27:17,020 --> 00:27:19,120
Ocasionally, they found remains.
369
00:27:19,320 --> 00:27:21,990
but mostly they found nothing.
370
00:27:25,710 --> 00:27:30,130
General Videla was found guilty of murder, kidnaping and torture.
371
00:27:30,330 --> 00:27:34,660
usar� una frase que no me pertenece,
le pertenece ya a todo el pueblo argentino ... i>
372
00:27:35,060 --> 00:27:38,690
Se�ores jueces, "�Nunca m�s!" i>
373
00:27:38,890 --> 00:27:41,730
He was sentenced to life in prison.
374
00:27:52,690 --> 00:27:55,080
LA DOCTRINA DEL SHOCK i>
375
00:27:55,280 --> 00:27:58,570
These first experiments in Latin America presented Friedman and his cohorts
376
00:27:58,710 --> 00:28:01,220
with a serious ideological problem.
377
00:28:01,820 --> 00:28:04,500
Friedman had promised that these policies
378
00:28:04,700 --> 00:28:07,090
would not just make the elites richer,
379
00:28:07,290 --> 00:28:10,510
but they would create the freest possible societies.
380
00:28:10,710 --> 00:28:12,960
This was a war against tirany.
381
00:28:13,160 --> 00:28:16,010
Capitalism and freedom went hand in hand.
382
00:28:16,310 --> 00:28:18,620
But, here we see that in the 70's
383
00:28:18,820 --> 00:28:21,810
the only countries putting this ideas into practice
384
00:28:21,990 --> 00:28:23,790
were military dictatorships.
385
00:28:23,990 --> 00:28:26,950
Nixon had fully suported imposing
386
00:28:27,150 --> 00:28:31,650
these types of brutal free market policies in South American dictatorships.
387
00:28:32,480 --> 00:28:37,370
But when it came to domestic economic policy in the US
388
00:28:37,570 --> 00:28:40,370
where Nixon had to worry of being reelected.
389
00:28:40,580 --> 00:28:42,370
it was a very, very different story.
390
00:28:46,180 --> 00:28:48,710
La Escuela de Chicago
y el Mundo de habla inglesa i>
391
00:28:50,510 --> 00:28:53,680
Friedman enjoyed a friendly relationship with Nixon.
392
00:28:53,880 --> 00:28:58,510
Several of his Chicago school colleges and disciples were recruited to work for the government.
393
00:29:00,840 --> 00:29:03,810
Donald Rumsfeld was one of them.
394
00:29:07,510 --> 00:29:10,700
But in 1971, with the economy on a slump
395
00:29:11,000 --> 00:29:13,470
Nixon turned his back on Friedman's ideas
396
00:29:13,670 --> 00:29:16,600
and imposed the wage and prices control policy.
397
00:29:16,800 --> 00:29:19,930
He put Rumsfeld in charge.
398
00:29:21,660 --> 00:29:25,240
I have, for long, oposed to wages and prices control
399
00:29:25,440 --> 00:29:30,070
I believe itinvolves a government intervention in freedom individuals, I think it's intolerable
400
00:29:32,110 --> 00:29:34,090
The Keynesian policy was a success
401
00:29:34,490 --> 00:29:37,990
and Nixon won a second term with a landslide majority.
402
00:29:38,810 --> 00:29:41,530
It was a blow for Friedman.
403
00:29:43,560 --> 00:29:47,710
Then in 1979, Margaret Thatcher was elected prime minister of Great Britain.
404
00:29:49,140 --> 00:29:52,650
Her intelectual guru was Friedman's old mentor
405
00:29:52,850 --> 00:29:54,870
Friederich von Hayek.
406
00:29:55,340 --> 00:29:58,140
And just over a year later, Ronald Reagan
407
00:29:58,340 --> 00:30:01,020
was elected president of the US.
408
00:30:05,410 --> 00:30:10,080
Both Britain and America were now ruled by unabashed Friedmanites.
409
00:30:12,540 --> 00:30:17,820
Margaret Thatcher program, when she came in, had for planks
410
00:30:18,500 --> 00:30:21,180
cut government spending, cut tax rates,
411
00:30:21,380 --> 00:30:25,380
reduce government ownership and operation of industries or regulation of industry
412
00:30:25,580 --> 00:30:29,540
and have a moderate stable monetary policy
413
00:30:29,740 --> 00:30:31,540
and bring down inflation.
414
00:30:31,740 --> 00:30:33,860
Within the first 3 years in office
415
00:30:34,060 --> 00:30:38,660
unemployment doubled in posts of the economy, leading to a wave of strikes.
416
00:30:39,060 --> 00:30:42,940
Thatchers personal aproval ratings swamped a 25%
417
00:30:45,840 --> 00:30:48,550
There were riots in Britain's major cities
418
00:30:50,350 --> 00:30:53,370
Even Margaret Thatcher's admirers had their doubts.
419
00:30:56,850 --> 00:30:59,580
The economic performance trhough the Thatcher's government have been mixed
420
00:31:05,830 --> 00:31:08,070
To those waiting with ? breath
421
00:31:08,270 --> 00:31:12,010
to hear that favourite media catch phrase, "the U turn"
422
00:31:12,310 --> 00:31:14,720
I have only one thing to say
423
00:31:15,270 --> 00:31:17,800
You turn if you want to
424
00:31:20,650 --> 00:31:23,770
"The Lady" is not for turn.
425
00:31:26,660 --> 00:31:28,790
Friederich von Hayek urged Thatcher
426
00:31:28,990 --> 00:31:32,320
to copy Pinochet's economic Shock therapy policies
427
00:31:33,410 --> 00:31:34,650
Thatcher replied:
428
00:31:34,850 --> 00:31:37,840
"In Britain we got our democratic institutions,
429
00:31:38,040 --> 00:31:40,070
and with the need for a high degree of consense
430
00:31:40,270 --> 00:31:43,850
some of the mesures adopted in Chile are quite unacceptable."
431
00:31:47,480 --> 00:31:49,380
Thatcher's profound unpopularity
432
00:31:49,580 --> 00:31:51,760
seemed to be probing once again,
433
00:31:52,460 --> 00:31:55,840
that free market fundamentalism was simply too unpopular
434
00:31:56,040 --> 00:32:01,350
to directly harmful to too many people, to survive in a democratic state
435
00:32:01,550 --> 00:32:05,210
where governing requieres geting the consent of the government
436
00:32:05,410 --> 00:32:07,680
unlike a military dictatorship.
437
00:32:08,180 --> 00:32:13,080
What pulled Thatcher back from the abyss and ultimately saved the project
438
00:32:13,280 --> 00:32:16,740
was a crisis. Indeed. was the ultimate crisis.
439
00:32:16,940 --> 00:32:18,340
It was a war.
440
00:32:18,540 --> 00:32:22,080
We are here because for the first time for many years
441
00:32:22,280 --> 00:32:26,390
British soverign territory has been invaded by a foreign power.
442
00:32:26,690 --> 00:32:31,090
The government has now decided, that a large task force will sail
443
00:32:31,490 --> 00:32:34,060
as soon as all preparations are complete.
444
00:32:34,590 --> 00:32:38,900
HMS invincible will be in the leed
445
00:32:41,630 --> 00:32:44,440
Most people in Britain had never even herd of the Falklands.
446
00:32:44,840 --> 00:32:47,350
But when Argentina invaded the small group of islands
447
00:32:47,550 --> 00:32:49,940
thousands of miles away in the south atlantic
448
00:32:50,360 --> 00:32:54,370
Thatcher seized the oportunity to prove her credentials as the "Iron Lady".
449
00:33:03,520 --> 00:33:06,240
War was over in less than 3 months.
450
00:33:10,110 --> 00:33:12,060
As the troops returned to Britain
451
00:33:12,270 --> 00:33:15,610
a wave of patriotic celebrations swept the country.
452
00:33:19,770 --> 00:33:23,590
Thatcher won the 1983 election with a massive majority.
453
00:33:24,920 --> 00:33:28,120
She could now push trhough a form of the economic shock therapy
454
00:33:28,320 --> 00:33:30,540
witnessed in Chile.
455
00:33:35,520 --> 00:33:39,610
The most powerful union in Britain was the National Union of Mineworkers.
456
00:33:41,080 --> 00:33:43,790
When National Carbon tried to close pits down.
457
00:33:44,000 --> 00:33:46,850
The miners went on strike.
458
00:33:48,310 --> 00:33:50,290
Parts of central London are brought to a
459
00:33:50,490 --> 00:33:53,670
as thousands of miners and sympathisers march trhough de city
460
00:33:53,870 --> 00:33:55,610
in support of the miners strike.
461
00:33:56,060 --> 00:33:59,080
It's british longest and most bitter srtrike since 1926.
462
00:33:59,280 --> 00:34:01,350
And the most expensive ever.
463
00:34:01,550 --> 00:34:04,140
The strike lasted almost a year.
464
00:34:05,620 --> 00:34:08,740
Thatcher used every means at her disposal to destroy the union.
465
00:34:18,160 --> 00:34:21,380
Eventualy the miners were defeated.
466
00:34:23,570 --> 00:34:25,020
Thatcher used this victory
467
00:34:25,220 --> 00:34:28,600
bring the Chicago School revolution to Britain.
468
00:34:30,200 --> 00:34:35,120
A series of glossy comercials promoted a massive program of privatizations.
469
00:34:35,780 --> 00:34:37,750
Thatcher sold off the steal industry,
470
00:34:38,450 --> 00:34:39,610
water,
471
00:34:40,000 --> 00:34:41,270
electricity,
472
00:34:41,570 --> 00:34:43,530
gas,
473
00:34:43,730 --> 00:34:45,990
telecomunications,
474
00:34:46,290 --> 00:34:48,280
airlines,
475
00:34:48,590 --> 00:34:49,720
oil.
476
00:34:50,480 --> 00:34:52,770
Public housing was sold off.
477
00:34:52,970 --> 00:34:55,520
Council services put down to ?
478
00:34:57,050 --> 00:35:01,630
In 1986, finantial and banking services were deregulated.
479
00:35:04,580 --> 00:35:06,590
It was called the Big Bang.
480
00:35:07,180 --> 00:35:11,920
No one here tonight needs reminding that the "Big bang" is only a beginning
481
00:35:15,000 --> 00:35:16,610
In Britain, before Thatcher
482
00:35:16,810 --> 00:35:20,220
a CEO won ten times as much as the average worker
483
00:35:22,040 --> 00:35:25,430
by 2007, they earned more than 100 times as much.
484
00:35:32,510 --> 00:35:34,300
In the US, before Reagan
485
00:35:34,500 --> 00:35:38,150
CEO's earned 43 times as much as the average worker
486
00:35:38,550 --> 00:35:43,040
in 2005, they earned more than 400 times as much.
487
00:35:45,200 --> 00:35:48,450
Friedman openly acknowledged the importance of Thatcher and Reagan
488
00:35:48,650 --> 00:35:52,140
in the spreading of Chicago School policies around the world.
489
00:35:54,420 --> 00:35:59,940
The coincidence of Thatcher and Reagan being in office at the same time
490
00:36:00,140 --> 00:36:04,570
was enormously important for the public acceptance worldwide
491
00:36:04,870 --> 00:36:08,190
of a different aproach to economic and monetary policy.
492
00:36:14,220 --> 00:36:17,890
What I'm describing now, is a plan of hope for the long term
493
00:36:18,290 --> 00:36:20,020
the march of freedom and democracy
494
00:36:20,220 --> 00:36:23,860
will leave Marxism, Lenninism, on the ashes heap of history
495
00:36:24,070 --> 00:36:25,800
as is has left other tiranies
496
00:36:26,000 --> 00:36:30,160
which stifle the freedom and ? the self expression of the people.
497
00:36:32,800 --> 00:36:35,380
498
00:36:35,680 --> 00:36:39,370
There, we all know the fairy tale about the fall of comunism.
499
00:36:39,570 --> 00:36:42,700
That the west of Reagan and Thatcher looked so prosperous
500
00:36:42,900 --> 00:36:45,560
to the people of the former comunist block,
501
00:36:45,760 --> 00:36:49,250
that they themselves demanded radical free market policies.
502
00:36:49,550 --> 00:36:51,600
Now, this really is a fairy tale.
503
00:36:51,800 --> 00:36:55,700
Is true that people who had been living under autoritarian comunism
504
00:36:56,100 --> 00:36:57,840
genuinely wanted democracy,
505
00:36:58,040 --> 00:37:01,480
and it's also true that they wanted to be able to go and buy blue jeans
506
00:37:01,710 --> 00:37:03,500
and have Big Mac's, that is true.
507
00:37:03,700 --> 00:37:07,850
But that does not mean that they wanted the kind of "wild west" capitalism
508
00:37:08,050 --> 00:37:11,240
of oligarcs gone mad and no social protection
509
00:37:11,440 --> 00:37:15,120
so many eastern conuntries actualy ended up with
510
00:37:15,320 --> 00:37:17,570
and suffer under to this day.
511
00:37:19,330 --> 00:37:23,150
Thatcher had done everything she could to break the power of Unions in Britain
512
00:37:23,550 --> 00:37:26,220
But in 1988, she went to Poland to
513
00:37:26,420 --> 00:37:30,110
to show her support to the workers union "Solidarity".
514
00:37:32,450 --> 00:37:37,490
Now you see the process, and where you are now,
515
00:37:37,690 --> 00:37:39,700
to where you want to be.
516
00:37:39,900 --> 00:37:42,660
Strikes in Poland, let to "Solidarity" being allowed to
517
00:37:42,860 --> 00:37:46,240
contest a general election in June 1989.
518
00:37:46,440 --> 00:37:50,280
This triggered a wave of demonstrations throughout eastern europe.
519
00:37:58,410 --> 00:38:01,410
In the past, the Soviet Union had used military force
520
00:38:01,610 --> 00:38:04,350
to crush democratic movements.
521
00:38:04,850 --> 00:38:07,670
But the Soviet Union had a new tipe of leader
522
00:38:07,870 --> 00:38:09,220
Mijail Gorvachov
523
00:38:09,420 --> 00:38:12,490
who's commited to Glasnost and Perestroika.
524
00:38:12,690 --> 00:38:14,730
He talked about a third way
525
00:38:14,930 --> 00:38:18,470
a gradual transition to scandinavian style social democracy.
526
00:38:18,670 --> 00:38:22,120
Something between free market capitalism and comunism.
527
00:38:25,600 --> 00:38:28,800
Gorvachov charmed the public and politicians of the west.
528
00:38:33,590 --> 00:38:37,320
He is a bold, and determined and corageous leader.
529
00:38:38,580 --> 00:38:40,510
Gorvachov stood and watched as
530
00:38:40,720 --> 00:38:44,170
one by one the old comunist regimes collapsed.
531
00:38:53,350 --> 00:38:56,750
At the end of the year, the most famous symbol of the division of Europe
532
00:38:56,950 --> 00:38:59,390
ended tumbling down.
533
00:39:07,080 --> 00:39:09,230
For Friedman and the "Chicago boys"
534
00:39:09,440 --> 00:39:11,970
a hole new world opened up.
535
00:39:12,550 --> 00:39:14,040
In the Soviet Union
536
00:39:14,240 --> 00:39:18,010
Gorvachov was hoping to see a gradualy reform of the economy.
537
00:39:19,110 --> 00:39:23,690
In 1991, Gorvachov was invited to the G7 summit in London.
538
00:39:23,990 --> 00:39:28,290
He was hoping for finantial support for his gradual economic reforms.
539
00:39:28,490 --> 00:39:32,880
Instead, he was told that unless he embraced a radical Shock therapy
540
00:39:33,080 --> 00:39:36,040
there would be no aid at all.
541
00:39:37,620 --> 00:39:40,800
The next month, there was a coup attempt against him.
542
00:39:42,060 --> 00:39:43,800
A group of Comunist Part hard liners
543
00:39:44,110 --> 00:39:48,300
Placed Gorvachov under house arrest in his holiday home in Crimea.
544
00:39:49,640 --> 00:39:53,160
Tanks surrouded the "White House", the russian parliament.
545
00:40:06,420 --> 00:40:08,860
Amid the chaos of street clashes
546
00:40:10,530 --> 00:40:13,180
it was obvious that to reinforce their position
547
00:40:13,380 --> 00:40:16,280
hardliners would had to resort to violence.
548
00:40:17,080 --> 00:40:19,450
Such action between the people and the security forces
549
00:40:19,650 --> 00:40:23,210
has not been seen since the early days of the russian revolution.
550
00:40:23,650 --> 00:40:26,220
By dawn this morning, amid a sea of debris
551
00:40:26,670 --> 00:40:29,890
it was becoming clear that the coup was desintegrating.
552
00:40:31,180 --> 00:40:33,350
The Russian parliament building was unscaved.
553
00:40:33,450 --> 00:40:35,370
The military had not made their move,
554
00:40:35,540 --> 00:40:39,170
and inside, Boris Yeltsin was more powerful than ever.
555
00:40:44,360 --> 00:40:46,970
This was Yeltsin's finest ever.
556
00:40:51,340 --> 00:40:54,100
Grovachov was released and he returned to Moscow.
557
00:40:54,300 --> 00:40:57,010
But he had lost much of his power.
558
00:40:59,610 --> 00:41:04,830
559
00:41:05,230 --> 00:41:08,420
560
00:41:08,610 --> 00:41:12,190
In december 1991, the Soviet Union was disolved.
561
00:41:12,390 --> 00:41:15,020
A profound shock for the Russian people.
562
00:41:15,920 --> 00:41:20,310
Yeltsin was now in charge of economic policy for the Russian Federation.
563
00:41:21,730 --> 00:41:23,250
The free market came to Russia.
564
00:41:25,380 --> 00:41:26,910
There was chaos.
565
00:41:29,560 --> 00:41:32,340
The adoption of Chicago School policies in Russia
566
00:41:32,540 --> 00:41:36,030
marked the beginning of a new chapter in the free market crusade.
567
00:41:36,430 --> 00:41:39,570
It was all Shock, no Therapy
568
00:41:45,580 --> 00:41:47,440
569
00:41:49,480 --> 00:41:52,170
Despite the public efforts to promote popular capitalism
570
00:41:52,370 --> 00:41:56,990
the reality was a small handful of businessman made vast fortunes.
571
00:41:59,910 --> 00:42:03,280
State industries were sold of at a bargain ? prices.
572
00:42:06,440 --> 00:42:08,990
The russian press called Yeltsin's advisers
573
00:42:09,190 --> 00:42:11,300
the "Chicago boys".
574
00:42:16,630 --> 00:42:19,960
Yeltsin's shock therapy, meant that in 1992
575
00:42:20,160 --> 00:42:24,410
the average russian consumed 40% less than in 1991.
576
00:42:26,990 --> 00:42:29,620
A third of russians fell below the poverty line.
577
00:42:29,820 --> 00:42:32,900
And wages weren't paid for months.
578
00:42:33,880 --> 00:42:37,520
One expert today predicted 140 million of russians
579
00:42:37,720 --> 00:42:40,000
will soon be living below the poverty line.
580
00:42:41,100 --> 00:42:44,660
Corruption was rife, organized crime boomed.
581
00:42:45,650 --> 00:42:48,250
Moscow became the new wild west.
582
00:43:10,160 --> 00:43:14,320
The majority of russians oposed the "Chicago boys" radical vision for their country.
583
00:43:15,820 --> 00:43:19,670
In march 1993, parliament made a crucial decision.
584
00:43:21,050 --> 00:43:24,510
It voted to repeal the special powers that were given to Yeltsin.
585
00:43:28,230 --> 00:43:31,370
Yeltsin declared the state of emergency.
586
00:43:35,480 --> 00:43:38,700
The Constitutional Court ruled that it was illegal.
587
00:43:45,260 --> 00:43:48,730
Semptember 21, Yeltsin took, what is known as the "Pinochet option"
588
00:43:48,930 --> 00:43:50,910
and disolved parliament.
589
00:43:51,960 --> 00:43:56,740
590
00:43:56,940 --> 00:44:01,620
591
00:44:02,510 --> 00:44:05,110
The west �threw his whip? behind Yeltsin.
592
00:44:06,730 --> 00:44:09,830
We feel that Boris Yeltsin is
593
00:44:11,150 --> 00:44:13,860
the best hope for democracy in Russia
594
00:44:15,080 --> 00:44:18,280
Two days later, parliament voted to impeach Yeltsin
595
00:44:18,480 --> 00:44:20,870
by 636 votes to 2.
596
00:44:24,040 --> 00:44:27,710
Thousandos of supporters of the parliament gathered around the White House
597
00:44:27,910 --> 00:44:30,930
and marched on the television station.
598
00:44:44,790 --> 00:44:47,430
It looked like the supporters of parliament were winning.
599
00:44:49,760 --> 00:44:52,740
Yeltsin flew back to Moskow from his holiday home.
600
00:44:55,910 --> 00:44:58,300
That night 100 demonstrators were killed
601
00:44:58,500 --> 00:45:01,270
as the Yeltsin authorities fought back.
602
00:45:19,670 --> 00:45:23,430
On the 4th of october, he ordered troops to stop the White House
603
00:45:23,630 --> 00:45:27,230
shelling the very building he had defended 2 years earlier.
604
00:45:27,800 --> 00:45:30,250
605
00:46:03,840 --> 00:46:07,100
Warren Christopher, the US Secretary of State said:
606
00:46:07,310 --> 00:46:10,720
"The US does not usually support the suspension of parliaments
607
00:46:11,130 --> 00:46:13,190
but these are extraordinary times."
608
00:46:20,030 --> 00:46:22,590
Yeltsin now had absolute power.
609
00:46:22,890 --> 00:46:24,870
With the advise of the "Chicago boys"
610
00:46:25,070 --> 00:46:27,810
he ruled through a form of �? capitalism.
611
00:46:30,470 --> 00:46:32,400
Even more, state industries were sold off
612
00:46:32,600 --> 00:46:35,040
creating a new class of billionaire businessman
613
00:46:35,250 --> 00:46:38,380
with huge political influence. The olgarchs.
614
00:46:41,860 --> 00:46:45,980
By 1998, 80% of russian farms were bankrupt
615
00:46:46,180 --> 00:46:48,850
and 70.000 state factories were closed.
616
00:46:52,700 --> 00:46:57,800
In 8 years the number of people living in povertry increased by 72 million.
617
00:46:58,410 --> 00:47:00,620
Meanwhile Moskow would go on
618
00:47:00,820 --> 00:47:04,060
tho have more billionaires than any other city in the world.
619
00:47:06,490 --> 00:47:08,840
620
00:47:12,640 --> 00:47:15,250
Good afternoon. Thank you for coming. Today is my
621
00:47:16,290 --> 00:47:19,430
honor to announce that I'am submitting the name of Donald Rumsfeld
622
00:47:19,630 --> 00:47:20,860
to be the new Secretary of Defense.
623
00:47:21,360 --> 00:47:23,210
I look forward to serving our country again.
624
00:47:23,410 --> 00:47:27,070
Rumsfeld had been Secretary of Defense before, under Gerald Ford.
625
00:47:27,370 --> 00:47:30,760
Then the enemy we were supposed to fear was the Soviet Union.
626
00:47:30,960 --> 00:47:33,180
I'm not saying with certainty that the russians are coming
627
00:47:33,380 --> 00:47:34,380
I'm saying, the terms are here.
628
00:47:34,580 --> 00:47:36,310
I'm not saying the russians are 10ft tall
629
00:47:36,510 --> 00:47:39,270
I'm saying they used to be 5,3 and they now are 5,9 and a half and they're growing.
630
00:47:40,150 --> 00:47:42,530
Now there was a new enemy closer to home.
631
00:47:42,940 --> 00:47:44,920
On september the 10th 2001,
632
00:47:45,320 --> 00:47:47,540
Rumsfeld made a speech laying out his plans
633
00:47:47,740 --> 00:47:50,550
to privatize much of the US military.
634
00:47:50,750 --> 00:47:52,840
Milton Friedman would have been proud.
635
00:47:53,240 --> 00:47:56,840
He said: "The topic today is an adversary that poses a thread,
636
00:47:57,440 --> 00:48:00,820
a serious thread to the security for the USA.
637
00:48:01,220 --> 00:48:04,540
This adversary is one of the worlds last bastions of central planning
638
00:48:05,090 --> 00:48:07,760
it governs by dictating 5 year plans.
639
00:48:07,960 --> 00:48:11,360
Perhaps this adversary sounds like the former Soviet Union,
640
00:48:11,560 --> 00:48:15,420
But that enemy is gone. This adversary is closer to home.
641
00:48:15,620 --> 00:48:17,510
It's the Pentagon bureaucracy.
642
00:48:17,910 --> 00:48:21,260
Today, we declare war on bureaucracy."
643
00:48:22,590 --> 00:48:25,020
The next day, American Airlines flight 77
644
00:48:25,530 --> 00:48:29,260
crashed into the Pentagon, killing 184 people.
645
00:48:36,050 --> 00:48:38,330
646
00:48:57,040 --> 00:49:00,450
Think about that feeling after those attaks.
647
00:49:01,020 --> 00:49:04,180
Who are these people? Where they come from?
648
00:49:04,380 --> 00:49:05,960
Why do they hate us?
649
00:49:06,260 --> 00:49:09,610
There was a total loss of collective narrative.
650
00:49:09,810 --> 00:49:13,700
We were not living in the world that we thought we were living in.
651
00:49:14,200 --> 00:49:17,080
And we kept hearing from our political leaders
652
00:49:17,280 --> 00:49:22,630
that everything we thought we understood before the attacks, no longer applied.
653
00:49:22,830 --> 00:49:25,940
There was a new phrase: "pre-911 thinking".
654
00:49:26,440 --> 00:49:32,220
And what happened in that moment, is that suddenly new stories magically appeared.
655
00:49:32,800 --> 00:49:37,310
We were in a "clash of civilizations", that's the world we suddenly lived in.
656
00:49:37,670 --> 00:49:42,270
That there was an "axis of evil", that we were fighting a war against terror.
657
00:49:43,640 --> 00:49:45,540
This abstract unwinable war
658
00:49:45,740 --> 00:49:47,790
had huge economic consecuences.
659
00:49:48,760 --> 00:49:52,910
Before 2001, Homeland Security barely registered as an industry.
660
00:49:53,190 --> 00:49:56,910
Today it is bigger than Holywood an the music industry combined.
661
00:49:57,940 --> 00:50:01,420
Between september 11 2001 and 2006
662
00:50:01,860 --> 00:50:05,950
the department of Homeland Security handed out 130 billion dollars
663
00:50:06,150 --> 00:50:08,180
to private contractors.
664
00:50:10,640 --> 00:50:13,370
This is the disaster capitalism complex.
665
00:50:13,570 --> 00:50:16,350
A new economy built on fear.
666
00:50:17,570 --> 00:50:20,190
This would be a monumental struggle
667
00:50:21,220 --> 00:50:23,030
of good versus evil
668
00:50:23,820 --> 00:50:26,890
669
00:50:27,240 --> 00:50:29,590
The best defense against terror
670
00:50:29,790 --> 00:50:32,850
is a global offensive against terror
671
00:50:33,150 --> 00:50:35,540
wherever it might be found.
672
00:50:37,440 --> 00:50:40,960
The first phase of this war, was the bombing of Afghanistan.
673
00:50:46,890 --> 00:50:50,280
The taliban government was quikcly overthrown.
674
00:50:52,460 --> 00:50:55,460
The aftermath of the war was more complicated.
675
00:50:55,660 --> 00:50:58,190
Our fight against terrorism began in Afghanistan
676
00:50:58,890 --> 00:51:00,990
but it will not end there.
677
00:51:03,570 --> 00:51:08,580
We're looking at detainees that we can use for collecting intelligence.
678
00:51:18,280 --> 00:51:21,970
Guantanamo was the first time that the techniques of the KUBARK manual
679
00:51:22,170 --> 00:51:26,320
were explicitly and publicly being used by american forces.
680
00:51:26,520 --> 00:51:28,480
Officially sanctioned by the White House
681
00:51:28,680 --> 00:51:31,410
y transmitido abiertamente por
la televisi�n en todo el mundo.
682
00:51:33,090 --> 00:51:35,930
Isolation, both physical and psychological,
683
00:51:36,130 --> 00:51:39,480
must be maintained from the moment of apprehension.
684
00:51:39,680 --> 00:51:43,610
The capacity of resistance is diminished by disorientation
685
00:51:44,900 --> 00:51:48,320
Prisoners should maintain silence at all times.
686
00:51:48,520 --> 00:51:51,430
They should never be allowed to speak to each other.
687
00:51:53,490 --> 00:51:56,650
3 of the prisoners were Asif Iqbal, Rhuhel Ahmed
688
00:51:56,950 --> 00:51:59,800
and Shafiq Rasul, from Tipton, in England.
689
00:52:01,170 --> 00:52:03,400
They spent more than 2 years in Guantanamo
690
00:52:03,600 --> 00:52:06,780
before being released without charge.
691
00:52:07,560 --> 00:52:10,900
Mentally yeah. You couldn't speak to nobody, you couldn't do nothing, you couldn't stand up.
692
00:52:12,910 --> 00:52:15,720
Sitting there, you being your thought:
693
00:52:15,920 --> 00:52:17,730
"What's going on? Where the hell I'm I?
694
00:52:18,580 --> 00:52:21,730
Are we gonna be stayin here for the rest of our lives? Are we going back home?
695
00:52:21,940 --> 00:52:24,040
Will we se our family again?"
696
00:52:26,210 --> 00:52:30,460
Of the 779 prisoners that had been held in the Guantanamo bay
697
00:52:30,660 --> 00:52:33,970
only 3 have ever been convicted of any offense.
698
00:52:40,750 --> 00:52:43,380
Now, the only thing I know for certain is that these are bad people
699
00:52:43,580 --> 00:52:47,170
It was a message to the hole world, and the message was clear:
700
00:52:47,370 --> 00:52:50,550
This is wat happens to you if you get in our way.
701
00:52:51,800 --> 00:52:54,470
702
00:52:54,780 --> 00:52:57,330
The war on terror is not about one man
703
00:52:57,540 --> 00:52:59,800
and it is not about one country.
704
00:53:00,100 --> 00:53:03,500
There was many justifications given for the invasion of Irak.
705
00:53:03,800 --> 00:53:06,160
But if US had really wanted to attack a country
706
00:53:06,360 --> 00:53:08,990
where the leaders of al-Qaeda were thought to be hidding
707
00:53:09,190 --> 00:53:13,390
that had nuclear weapons and was selling nuclear technology to other countries
708
00:53:13,990 --> 00:53:16,370
then, Pakistan would have been the obvious choice.
709
00:53:17,000 --> 00:53:21,920
It had close connections to the Taliban, and was being ruled by a military dictator.
710
00:53:22,720 --> 00:53:25,240
Instead, George Bush chose to target Irak.
711
00:53:26,130 --> 00:53:29,790
A country with the third largest oil reserves in the world.
712
00:53:34,270 --> 00:53:37,480
713
00:53:37,680 --> 00:53:39,830
Now about the Defense Department war plan
714
00:53:40,030 --> 00:53:41,570
It is not like the other Gulf war
715
00:53:41,770 --> 00:53:44,920
it's more along the line to the Panam� invasion in 1989
716
00:53:45,120 --> 00:53:48,610
CBS news is been told it would start on what's called "A-day".
717
00:53:48,810 --> 00:53:52,150
A as in "airstrikes", airstrikes so devastating
718
00:53:52,350 --> 00:53:55,710
they would leave Saddam's soldiers unabled or unwilling to play.
719
00:53:55,910 --> 00:54:00,880
The idea is to rain down the thunder so hard as to create, quote: "Shock and awe"
720
00:54:02,060 --> 00:54:05,280
If the Pentagon sticks to its card war pan, one day on march
721
00:54:05,480 --> 00:54:09,050
Airforce and Navy will launch between 3 and 400 cruise missiles
722
00:54:09,250 --> 00:54:10,850
at targets in Irak.
723
00:54:11,050 --> 00:54:14,960
More than were launched in the entire 40 days of the first Gulf War.
724
00:54:15,260 --> 00:54:18,200
The size of this has been ever seen before.
725
00:54:18,400 --> 00:54:20,240
never been contemplated before.
726
00:54:20,450 --> 00:54:23,710
Halla Ullman is one of the authors of the "Shock and awe" concept,
727
00:54:23,910 --> 00:54:27,340
which relies on a large number of "precission guided weapons".
728
00:54:27,540 --> 00:54:31,870
... so that you have this simultaneous effect rather like nuclear weapons in Hiroshima...
729
00:54:32,070 --> 00:54:35,070
not taking days or weeks, but a minute.
730
00:54:43,880 --> 00:54:47,950
You also take the city down, what I mean, you get rid of their power, their water
731
00:54:48,150 --> 00:54:51,380
And you begin this relentless campaign to wear them down
732
00:54:51,580 --> 00:54:53,540
so that in 2,3,4,5 days
733
00:54:53,740 --> 00:54:57,000
they're physically, emotionally, and psychologically exhausted.
734
00:54:58,660 --> 00:55:03,260
Last night, a square mile in central Baghdad seemed like hell on earth.
735
00:55:07,070 --> 00:55:09,100
During the first wave of the bombing
736
00:55:09,300 --> 00:55:12,460
citizens of Baghdad suffered the version of "sensorial deprivation"
737
00:55:12,660 --> 00:55:15,380
described in the KUBARK manual.
738
00:55:18,700 --> 00:55:21,360
In the chaos that followed the overthrown of Saddam Hussein
739
00:55:21,760 --> 00:55:24,040
the US did little to stop the looting.
740
00:55:24,640 --> 00:55:27,640
Some US officials even thought it gave them a head start
741
00:55:27,840 --> 00:55:30,400
dismantling the Iraqui state.
742
00:55:32,130 --> 00:55:35,540
John Agresto, director of higher education reconstruction
743
00:55:35,840 --> 00:55:41,290
said he saw the looting of schools as the "oportunity for a clean start".
744
00:55:42,150 --> 00:55:44,120
In fact, before sanctions
745
00:55:44,320 --> 00:55:46,940
Irak had the best education system in the region.
746
00:55:47,140 --> 00:55:50,080
89% of the Iraquis were literate.
747
00:55:50,280 --> 00:55:54,200
By contrast, in New Mexico, John Agresto's home state
748
00:55:54,400 --> 00:55:58,520
46% of the population were functionaly illiterate.
749
00:56:01,220 --> 00:56:03,580
750
00:56:03,780 --> 00:56:06,790
Irak had three distinct forms of shock
751
00:56:07,290 --> 00:56:11,110
they were all working toghether and reinforcing each other.
752
00:56:11,510 --> 00:56:13,680
You had the shock of the war,
753
00:56:14,090 --> 00:56:18,180
which was immediatly followed by economic Shock Therapy
754
00:56:18,380 --> 00:56:19,980
imposed under Paul Bremer.
755
00:56:20,180 --> 00:56:23,840
And as resistace to that economic transformation,
756
00:56:24,040 --> 00:56:27,320
very rapid economic shock, grew
757
00:56:27,520 --> 00:56:31,110
you had the shock of enforcement, including torture.
758
00:56:31,250 --> 00:56:32,340
Three different kinds of shock.
759
00:56:34,390 --> 00:56:36,420
760
00:56:39,460 --> 00:56:40,980
In may 2003
761
00:56:41,180 --> 00:56:44,380
Paul Bremer was appointed US envoy to Irak.
762
00:56:44,580 --> 00:56:46,610
Two weeks after he arrived
763
00:56:46,810 --> 00:56:49,260
declared the country "open for busines".
764
00:56:49,560 --> 00:56:52,910
We consider that the coalition has very broad authorities
765
00:56:53,310 --> 00:56:56,300
to determine the direction of the Iraqui economy.
766
00:56:57,070 --> 00:56:58,780
Bremer knew little of Irak
767
00:56:58,980 --> 00:57:01,980
but he knew about disaster capitalism.
768
00:57:02,180 --> 00:57:04,800
He had launched "Crisis Consulting Practice"
769
00:57:05,000 --> 00:57:07,820
at the start of the Homeland Security boom.
770
00:57:08,590 --> 00:57:12,440
Today is a very important day in Baghdad
771
00:57:13,170 --> 00:57:15,040
Bremer spent the first four months
772
00:57:15,240 --> 00:57:18,290
passing classic Chicago School laws.
773
00:57:19,040 --> 00:57:20,920
Rumsfeld described Irak
774
00:57:21,120 --> 00:57:26,050
as having some of the most enlightened and inviting tax and investment laws in the free world.
775
00:57:28,340 --> 00:57:29,980
One of the first acts of Bremer
776
00:57:30,180 --> 00:57:33,040
was to fire 500.000 state workers.
777
00:57:33,550 --> 00:57:36,050
This was partly an act of De-Ba'athification
778
00:57:36,250 --> 00:57:40,340
by slashing governments, was also �? Friedman.
779
00:57:41,860 --> 00:57:44,000
Money was promised for reconstruction.
780
00:57:44,210 --> 00:57:47,610
Our investment in the future of Afghanistan and Irak
781
00:57:47,810 --> 00:57:51,630
it's the greatest commitment of it's kind since the Marshall plan.
782
00:57:52,550 --> 00:57:55,210
But in fact it was just the opposite.
783
00:57:56,040 --> 00:57:59,480
Whereas the Marshall plan was inended to boost european industries
784
00:57:59,680 --> 00:58:03,110
USA money in Irak was spent on US corporations.
785
00:58:03,510 --> 00:58:05,510
If work came to iraquis
786
00:58:05,710 --> 00:58:08,960
came at the bottom of a series of subcontractors.
787
00:58:10,990 --> 00:58:14,980
"Creative Associates" recieved contratcs worth 100 million dollars
788
00:58:15,380 --> 00:58:19,510
to draft the curriculum and print the new textbooks for the new education system.
789
00:58:21,000 --> 00:58:23,660
Management and technology consultant "Bearing Point"
790
00:58:23,860 --> 00:58:27,340
was awarded contracts worth 240 million dollars
791
00:58:27,540 --> 00:58:30,660
to build a market driven system in Irak
792
00:58:31,160 --> 00:58:32,930
North Carolina based RTI (Research Triangle Institute)
793
00:58:33,130 --> 00:58:36,710
recieved contracts worth 466 million dollars
794
00:58:36,910 --> 00:58:39,960
to advise on bringing democracy to Irak.
795
00:58:40,660 --> 00:58:45,520
And "Halliburton" was awarded 20 billion dollars in cost plus Iraqui contracts.
796
00:58:47,110 --> 00:58:52,160
"Parsons" was handed 186 million dollars to build 142 health clinics.
797
00:58:52,860 --> 00:58:54,770
Only 6 were ever completed.
798
00:58:55,930 --> 00:58:59,240
Basic electricity and water suplies hardly improved
799
00:58:59,440 --> 00:59:02,390
despite billions being spent in the 4 first years.
800
00:59:02,900 --> 00:59:05,290
We're gonna succede here. And when we succede here
801
00:59:05,490 --> 00:59:08,920
we'll have done something important. Not just for 25 million of Iraquis
802
00:59:09,120 --> 00:59:12,600
We will have done something it serves western interests in this whole region
803
00:59:13,920 --> 00:59:16,060
Even the new Iraqui currency was printed abroad.
804
00:59:16,460 --> 00:59:20,120
Let me show you an example of this notes.
805
00:59:22,780 --> 00:59:27,220
US even paid private contractors to monitor the work of the private contractors
806
00:59:27,430 --> 00:59:29,060
who had won contracts.
807
00:59:31,060 --> 00:59:33,330
WE WANT JOB!
808
00:59:34,490 --> 00:59:36,270
I was in Baghdad in 2004
809
00:59:36,470 --> 00:59:39,690
and this is the period when bombs started to go off regularly in Baghdad.
810
00:59:39,890 --> 00:59:42,820
In fact, the night that I arrived, a bomb went off really near our hotel
811
00:59:44,600 --> 00:59:47,360
But what was really striking to me in this period
812
00:59:47,770 --> 00:59:51,270
was that despite the violence, despite the chaos, the next day
813
00:59:51,470 --> 00:59:53,770
Iraquis were out on the street protesting.
814
00:59:53,970 --> 00:59:56,690
19 killed and 100 injured in Najaf
815
00:59:57,130 --> 01:00:00,330
And what they were demanding at this time, was elections.
816
01:00:00,530 --> 01:00:05,340
Their right to actually have a say in what the post Saddam era would look like
817
01:00:05,920 --> 01:00:08,590
In the early days of the occupation, the protests were peaceful.
818
01:00:08,790 --> 01:00:12,020
But as time went on, and the protests didn't have an effect
819
01:00:12,260 --> 01:00:15,670
More and more iraquis joined the armed resistance.
820
01:00:21,570 --> 01:00:24,120
The violence spun out of control.
821
01:00:40,490 --> 01:00:42,830
As in South America 3 decades earlier
822
01:00:43,030 --> 01:00:46,570
bodies were often dumped by the road side as a warning to the others.
823
01:00:47,780 --> 01:00:50,550
These were iraquis disapeared.
824
01:00:58,050 --> 01:01:02,080
Extremely aggressive measures were needed to supress the oposition.
825
01:01:06,360 --> 01:01:08,430
826
01:01:14,210 --> 01:01:16,570
The first 3 and a half years of the occupation
827
01:01:16,770 --> 01:01:20,010
61.500 iraquis were captured.
828
01:01:20,480 --> 01:01:24,190
By spring 2007, 19.000 remained in custody.
829
01:01:27,880 --> 01:01:30,270
In prison they were interogated using techniques
830
01:01:30,470 --> 01:01:33,330
that could be traced to those devised by the CIA
831
01:01:33,530 --> 01:01:36,960
from Ewan Cameron's experiments in the 50's.
832
01:01:46,600 --> 01:01:48,090
According to the Red Cross
833
01:01:48,290 --> 01:01:50,320
US military officials admited
834
01:01:50,510 --> 01:01:55,300
that between 70 and 90% of arrests in Irak were mistakes
835
01:02:01,040 --> 01:02:04,290
The chaos in Irak seems like a defeat for shock therapy
836
01:02:05,240 --> 01:02:08,280
But in Irak, disaster capitalism moved on.
837
01:02:12,110 --> 01:02:15,510
Now, the disaster itself provided the oportunity for profit.
838
01:02:26,870 --> 01:02:28,910
839
01:02:32,030 --> 01:02:36,370
US military spending has almost doubled since 2001.
840
01:02:37,270 --> 01:02:40,120
Nearing 700 billion dollars per year.
841
01:02:43,700 --> 01:02:48,280
As long ago in 1961, president Eisenhower, not a noted liberal
842
01:02:48,480 --> 01:02:51,410
warned of the danger of a too powerful military.
843
01:02:51,810 --> 01:02:54,800
On this conjunction of an immense military establishment
844
01:02:55,010 --> 01:02:59,490
and a large arms industry is new in the american experience
845
01:02:59,890 --> 01:03:03,720
and we must guard against the acquisition of unwanted influences
846
01:03:03,920 --> 01:03:05,310
wether sought or unsought
847
01:03:05,710 --> 01:03:08,340
by the military industrial complex.
848
01:03:09,140 --> 01:03:11,460
We must never let the weight that this combination
849
01:03:11,660 --> 01:03:14,260
endanger our liberties or democratic processes.
850
01:03:16,160 --> 01:03:20,190
The war in Irak is the most privatized war in modern history.
851
01:03:20,800 --> 01:03:22,910
The green zone in Baghdad is an extreme version
852
01:03:23,110 --> 01:03:25,020
of what is happening around the world.
853
01:03:26,520 --> 01:03:30,080
A privatized, secur world protected from the chaos outside.
854
01:03:38,190 --> 01:03:40,870
In 1991, in the first gulf war
855
01:03:41,080 --> 01:03:44,470
for every 100 soldiers there was 1 military contractor.
856
01:03:44,670 --> 01:03:47,630
In 2003, at the beginning of the war in Irak
857
01:03:47,830 --> 01:03:51,160
for every 100 soldiers there were 10 contractors.
858
01:03:51,360 --> 01:03:56,750
At 2006, for every 100 soldiers there were 33 contractors.
859
01:03:57,250 --> 01:04:02,010
A year later, for every 100 soldiers there were 70 contractors.
860
01:04:02,410 --> 01:04:04,250
By july 2007,
861
01:04:04,450 --> 01:04:07,940
there were more contractors than soldiers in Irak.
862
01:04:08,470 --> 01:04:12,140
This was going beyond what Milton Friedman had dared to hope.
863
01:04:13,060 --> 01:04:15,090
The only things I would not denationalize
864
01:04:15,290 --> 01:04:18,440
are army forces, the courts,
865
01:04:20,930 --> 01:04:22,970
and some of your roads and highways.
866
01:04:23,820 --> 01:04:26,030
One of the most high profile contractors was
867
01:04:26,230 --> 01:04:28,590
"Blackwater USA".
868
01:04:29,310 --> 01:04:32,610
During the april 2004 uprising in Najaf
869
01:04:33,110 --> 01:04:35,970
Blackwater assumed command over US Marines.
870
01:04:36,270 --> 01:04:39,350
Dozens of iraquis were killed during the operation.
871
01:04:40,080 --> 01:04:44,230
US had indemnified the private contractors against any of iraqui laws.
872
01:04:44,430 --> 01:04:48,440
So they were operating in a law free bubble, a little like Guantanamo.
873
01:04:49,200 --> 01:04:52,180
I asked your Secretary of Defense a couple months ago
874
01:04:52,380 --> 01:04:55,080
what law governs their actions.
875
01:04:55,280 --> 01:04:58,300
I was gona ask him. Go ahead.
876
01:05:02,420 --> 01:05:03,860
Help!
877
01:05:07,680 --> 01:05:09,690
878
01:05:10,150 --> 01:05:14,310
Just as Cameron's Shock therapy left his patients confused and broken,
879
01:05:14,530 --> 01:05:17,050
so the multiple shocks inflicted on Irak
880
01:05:17,250 --> 01:05:20,870
reduced the country to a lawless, violent, sectarian mess.
881
01:05:25,080 --> 01:05:28,420
By the time of Saddam Hussein's execution in 2006
882
01:05:28,620 --> 01:05:31,130
1000 iraquis would've been killed each week.
883
01:05:37,270 --> 01:05:41,870
By april 2007, the UN high comission for refugees (ACNUR)
884
01:05:42,070 --> 01:05:45,290
estimated that 4 million people had had to leave their homes,
885
01:05:45,500 --> 01:05:47,920
hundreds of thousands of iraquis had died.
886
01:05:51,330 --> 01:05:56,150
I think the historians will write, very clearly,
887
01:05:56,350 --> 01:05:59,140
that we did a great and noble thing here.
888
01:05:59,520 --> 01:06:02,480
889
01:06:04,070 --> 01:06:07,410
890
01:06:07,610 --> 01:06:11,140
891
01:06:11,340 --> 01:06:13,990
892
01:06:14,190 --> 01:06:16,380
893
01:06:32,130 --> 01:06:34,160
894
01:06:35,250 --> 01:06:39,060
When hurricane Katrina hit New Orleans in agust 2005
895
01:06:39,360 --> 01:06:43,410
the world was shocked to witness a sort of "disaster apartheid".
896
01:06:44,590 --> 01:06:47,190
The economically secured drove out of town
897
01:06:47,390 --> 01:06:49,660
while tens of thousans of the vulnerable were stranded
898
01:06:49,860 --> 01:06:52,580
with little or no help from the state.
899
01:06:55,930 --> 01:06:58,740
I went to New Orleans while the city was still underwater
900
01:06:59,140 --> 01:07:02,660
and what I saw was that what I had witnessed in Irak, was repeating
901
01:07:02,890 --> 01:07:07,480
not in the aftermath of a war, but in the aftermath of a tremendous natural disaster.
902
01:07:08,900 --> 01:07:11,400
Milton Friedman died in 2006,
903
01:07:11,700 --> 01:07:15,400
his very last public policy recommendation
904
01:07:15,810 --> 01:07:18,090
was an "article" that he wote for the Wall Street Journal
905
01:07:18,290 --> 01:07:19,740
3 months after Katrina.
906
01:07:20,340 --> 01:07:22,970
He said: "Those New Orleans schools are in ruins
907
01:07:23,170 --> 01:07:26,110
as are the homes of the children ho had attended there.
908
01:07:26,310 --> 01:07:28,680
The children are now scattered all over the country.
909
01:07:28,880 --> 01:07:32,490
This is a tragedy, but this is also an oportunity to radically reform
910
01:07:32,690 --> 01:07:34,290
the Education System".
911
01:07:34,490 --> 01:07:38,220
He was aplicating the hole sell privatisation of the school system of this city.
912
01:07:38,520 --> 01:07:40,840
Was his sort of, Swan song.
913
01:07:44,170 --> 01:07:47,640
914
01:07:50,120 --> 01:07:54,980
I witnessed a similar process in Sri Lanka in the aftermath of the 2004 tsunami.
915
01:07:57,960 --> 01:08:00,080
People who'd lived on the beaches for generations
916
01:08:00,280 --> 01:08:01,810
were prevented from returning
917
01:08:02,010 --> 01:08:06,070
so that the land could be privatized and sold off to luxury hotels.
918
01:08:11,700 --> 01:08:14,540
And this is exactly what I mean by the Shock Doctrine-
919
01:08:14,740 --> 01:08:18,200
The systematic raiding of the public sphere
920
01:08:18,400 --> 01:08:19,930
in the aftermath of a disaster.
921
01:08:20,230 --> 01:08:25,020
When people are too focused on the emergency on their daily concerns
922
01:08:25,230 --> 01:08:28,180
to protect their interests.
923
01:08:37,670 --> 01:08:39,690
Maybe the first act of resistence
924
01:08:39,890 --> 01:08:43,480
is to refuse our collective memory to be wiped.
925
01:08:45,230 --> 01:08:48,550
In 2008, Naomi Klein vidited Villa Grimaldi
926
01:08:48,750 --> 01:08:51,850
with Isabel Morel, the widow of Orlando Letelier.
927
01:08:54,430 --> 01:08:58,180
Villa Grimaldi is a memorial to the cruelty of the Pinochet regime
928
01:08:58,380 --> 01:09:00,390
and to his eventual defeat.
929
01:09:00,630 --> 01:09:05,290
930
01:09:05,490 --> 01:09:10,490
931
01:09:12,510 --> 01:09:16,630
932
01:09:18,370 --> 01:09:23,550
933
01:09:25,950 --> 01:09:29,030
It's not that I loved Pinochet
934
01:09:30,470 --> 01:09:34,320
but I think that he was our teacher in many things.
935
01:09:36,020 --> 01:09:38,310
We learned about evil.
936
01:09:45,420 --> 01:09:49,130
In 1998, Pinochet was arrested while he was in London.
937
01:09:50,040 --> 01:09:53,150
His old allied Margaret Thatcer stood by his side.
938
01:09:54,570 --> 01:09:58,160
I know how much I owe to you.
939
01:10:04,070 --> 01:10:06,520
It took 30 years for the economic experiment
940
01:10:06,750 --> 01:10:11,130
originally test driven by Pinochet to make its way around the globe to Irak.
941
01:10:11,970 --> 01:10:15,530
But the similarities between past and present are startling.
942
01:10:17,010 --> 01:10:19,010
Between Pinochet's concentration camps
943
01:10:19,210 --> 01:10:22,070
and Bush's Guant�namo detention center.
944
01:10:24,010 --> 01:10:27,670
Between the disapeared in Chile and those in Irak.
945
01:10:29,550 --> 01:10:31,620
Between the experiments of Ewen Cameron
946
01:10:31,820 --> 01:10:35,050
and the torture �? on the prisoners of Abu Ghraib.
947
01:10:37,170 --> 01:10:41,900
He erased all the past, that's why he gave electroshock,
948
01:10:42,400 --> 01:10:47,430
all the past from the patient, and he would implant new ideas.
949
01:10:48,640 --> 01:10:50,520
But Janine resisted.
950
01:10:50,720 --> 01:10:54,790
In 1998, the CIA agreed to pay compensations to Janine
951
01:10:54,990 --> 01:10:57,820
and other victims of Ewan Cameron's experiments.
952
01:10:59,750 --> 01:11:03,360
Janine: are you proud that they tried to break you
953
01:11:03,970 --> 01:11:08,310
and that you had fought so hard, and won?
954
01:11:08,680 --> 01:11:12,070
In a way I am, in a way, I am.
955
01:11:13,180 --> 01:11:17,900
Because I must have some will power seeds in me.
956
01:11:19,740 --> 01:11:22,850
It's very very hard to fight a government.
957
01:11:23,250 --> 01:11:26,910
People would tell me: "Janine, you don't fight the government.
958
01:11:27,110 --> 01:11:29,640
What's the matter with you? They're too big."
959
01:11:29,840 --> 01:11:32,510
But I had faith that we would win.
960
01:11:34,210 --> 01:11:36,640
961
01:11:39,030 --> 01:11:42,450
It is in the nature of unregulated markets, to be volatile.
962
01:11:42,650 --> 01:11:47,010
Bubbles are allowed to inflate, and then, inevitably, they burst.
963
01:11:47,750 --> 01:11:50,290
Since the deregulation of the "Big Bang" in the 80's
964
01:11:50,490 --> 01:11:52,790
there have been a number of market shocks.
965
01:11:54,110 --> 01:11:56,790
In 1987 there was "black monday".
966
01:11:57,830 --> 01:12:00,210
Markets fell spectacularly.
967
01:12:00,700 --> 01:12:04,530
It was the largest one day percentage decline in stock market history.
968
01:12:06,670 --> 01:12:09,370
In 1992, there was "black wednesday".
969
01:12:09,570 --> 01:12:13,340
When currency speculators made fortunes betting against the Pound.
970
01:12:15,010 --> 01:12:17,890
In 1997, there was the Asian �contraction?.
971
01:12:20,220 --> 01:12:24,030
In one year, 600 billion dollars disappeared from the stock markets of Asia.
972
01:12:30,380 --> 01:12:33,290
And then in september 2008
973
01:12:33,490 --> 01:12:36,020
the finacial markets imploded.
974
01:12:37,110 --> 01:12:39,330
The market is not functioning properly.
975
01:12:39,830 --> 01:12:42,240
There has been a wide spread loss of confidence.
976
01:12:45,070 --> 01:12:46,830
977
01:12:49,850 --> 01:12:51,660
978
01:12:51,850 --> 01:12:56,950
On september the 15th, "Lehman brothers" filed for chapter 11 bankrupcy protection
979
01:12:58,040 --> 01:12:59,550
yet only one week later
980
01:12:59,750 --> 01:13:05,240
it was announced that workers in their New York offices, would share 2.5 billion dollars in bonuses.
981
01:13:08,680 --> 01:13:13,550
It is estimated that Wall Street firms paid 18,4 billion dollars in bonuses last year (2008).
982
01:13:13,750 --> 01:13:16,220
The year of the crash.
983
01:13:18,530 --> 01:13:21,890
Despite retoric of populist rather taking on the fat cats
984
01:13:22,100 --> 01:13:24,730
and standing up for the little guy and saving Main street
985
01:13:24,930 --> 01:13:26,690
Not Wall street
986
01:13:26,900 --> 01:13:31,920
We are witnessing a transfer of wealth of unfathomable size.
987
01:13:33,160 --> 01:13:35,640
It is a transfer of wealth from public hands
988
01:13:35,840 --> 01:13:39,090
from the hands of government, collected from regular people
989
01:13:39,290 --> 01:13:40,950
in the form of taxes
990
01:13:41,250 --> 01:13:45,890
into the hands of the wealthiest corporations and individuals in the world.
991
01:13:46,090 --> 01:13:51,520
Needless to say, the very individuals and corporations that created this crisis.
992
01:13:52,170 --> 01:13:54,660
[Alan Greenspan - Former President
of US ferderal reserve] i>
993
01:13:54,820 --> 01:13:59,160
We are in the midsts of a one in a century credit tsunami.
994
01:13:59,760 --> 01:14:03,990
I found a flaw, I don't know how significant or permanent it is
995
01:14:04,250 --> 01:14:06,620
but I've been very distressed by that fact.
996
01:14:09,380 --> 01:14:14,310
In the US it was the financial crisis that secured Obama's victory.
997
01:14:14,510 --> 01:14:17,170
Americans wanted a change of course.
998
01:14:25,480 --> 01:14:29,470
This crisis is clearly understood, by almost everyone
999
01:14:29,670 --> 01:14:33,620
as being the direct result of this particular ideology
1000
01:14:33,820 --> 01:14:36,640
of deregulation an privatisation.
1001
01:14:38,800 --> 01:14:41,920
The scale of the crisis offers the hope of change.
1002
01:14:42,120 --> 01:14:44,200
1003
01:14:45,440 --> 01:14:47,380
The shock doctrine as a strategy
1004
01:14:47,580 --> 01:14:50,700
relies on us not knowing about it, for it to work.
1005
01:14:50,900 --> 01:14:54,640
What I find most hopeful, about the current economic crisis
1006
01:14:54,840 --> 01:14:57,190
is that this tactic is getting tired.
1007
01:14:57,390 --> 01:14:59,850
Because the element of surprise is no longer there.
1008
01:15:00,060 --> 01:15:02,080
We're onto them and it's not working.
1009
01:15:02,290 --> 01:15:05,100
We're becoming shock resistant.
1010
01:15:08,120 --> 01:15:11,640
The last time the world suffered a financial crisis as severe as this
1011
01:15:11,940 --> 01:15:14,690
people turned to the Keynesian policies of the New Deal (1933).
1012
01:15:14,890 --> 01:15:21,290
let me assert my firm belief that the only thing we have to fear
1013
01:15:22,330 --> 01:15:24,470
it's fear itself
1014
01:15:25,300 --> 01:15:27,490
More than 2 million people came to washington
1015
01:15:27,690 --> 01:15:30,140
to hear Obama's innauguration speech.
1016
01:15:30,340 --> 01:15:33,630
Many journalists made comparisons with FDR
1017
01:15:38,060 --> 01:15:40,670
It's been a lot of talk recently
1018
01:15:40,870 --> 01:15:44,710
about comparing Obama to Franklin Delano Roosevelt.
1019
01:15:45,300 --> 01:15:48,870
So I want to talk a little bit about FDR, because there is this great FDR story
1020
01:15:49,070 --> 01:15:50,630
(it could be an aprocryphal one)
1021
01:15:52,390 --> 01:15:58,150
When he would be visited by some progressist organisation, or union
1022
01:15:58,450 --> 01:16:01,650
and they would be proposing some new progressist policy
1023
01:16:01,850 --> 01:16:04,310
that they wanted to be part of the New Deal
1024
01:16:04,510 --> 01:16:07,810
he would hear them out, he would listen to them, and in the end, he would say:
1025
01:16:08,010 --> 01:16:10,910
"Now go out there and make me do it".
1026
01:16:11,750 --> 01:16:16,720
And they did. In 1937,which was a �? year for the New Deal
1027
01:16:16,930 --> 01:16:19,260
You know how many strikes they were in this country?
1028
01:16:19,460 --> 01:16:23,980
4.740 strikes, lasting an average of 20 days.
1029
01:16:27,120 --> 01:16:30,380
Do you know how many strikes they were in 2007?
1030
01:16:31,220 --> 01:16:32,620
21.
1031
01:16:32,920 --> 01:16:36,520
Now, the other reason to remember this history of struggle
1032
01:16:37,160 --> 01:16:39,060
is that it tells us something very important.
1033
01:16:39,460 --> 01:16:43,780
Something that we need to remeber at this moment, when so much is at stake.
1034
01:16:44,620 --> 01:16:49,360
It teaches us that if we want responses to this economic crisis
1035
01:16:49,560 --> 01:16:55,760
to leave us to a world that is healthier, that is more just, that is more peaceful
1036
01:16:56,360 --> 01:17:00,640
we are going to have to go out there, and make them do it. Thank you.
1037
01:17:05,000 --> 01:18:30,000
Subtitulado para Subdivx por Damian 667 y Astroboy7 translated by NoOne
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