The Bank for International Settlements (BIS) has issued a stark warning in its annual report.

The central bank for central banks warned that the current AI investment boom is unsustainable.

The five largest “hyperscaler” tech firms plan to spend more than a trillion dollars on AI-related capital expenditure from 2025 through 2026. This spending is outpacing their earnings and free cash flow, forcing some to issue debt.

“Disappointment in returns could trigger a sudden pullback in financing and turn the capex boom into a protracted investment bust… should hyperscalers slow or halt the aggressive pace of capex deployment, many borrowers across the supply chain could struggle to replace lost revenue and service their debt.”

• READ MORE: ‘We are in a bubble’: Experts warn of historic AI bust risk
• Other financial bubble reports

When the BIS — the only central bank to warn before the 2008 crash — sounds the alarm, we should listen. The Bank of England, European Central Bank, and Monetary Authority of Singapore have since echoed similar concerns.

Financial bubbles have become the norm since the late 1970s, when the US dollar left the gold standard and financialisation took hold. Household net worth began expanding faster than GDP, creating cycles of bubbles and busts.

Yet the current bubble dwarfs all previous ones in history, as illustrated in this graphic from the US Federal Reserve.

First came the Dot-com bubble, then the housing bubble of 2008. A credit crunch in 2019 was poised to trigger another recession, but was submerged by the covid-19 crisis and the unprecedented monetary response.

The result is what can only be described as the “bubble of everything”.

• Equities: US stock market capitalisation is now 230 percent of GDP — twice the long-term average. In early June, stocks were selling at about 40 times average corporate earnings over the previous decade, a level seen only at the peak of the Dot-com bubble.
• Private credit: The $3 trillion non-bank private credit “shadow market,” which exploded over the last decade, is under severe stress.
• AI mania: A trillion-dollar spending wave on AI, chips, and data centers is a real buildout wrapped in a speculative frenzy. This circular spending by tech giants props up the bubble, a risk mainstream media has begun to highlight.

The associated wealth accumulation is historically unprecedented. A new billionaire oligarchy has emerged, deeply reactionary, racist, and anti-democratic. It is fully merged with the military-industrial complex, dependent on permanent war and genocide for survival.

The tech wing of this class seeks to surveil, control, and monetise every facet of human life.

Fraud is standard operating procedure, from the Trump family’s alleged looting of state resources to the SpaceX listing.

For the SpaceX IPO, Nasdaq and FTSE Russell rewrote their rules to fast-track the company into major indexes after just days of trading. This forced retirement funds to buy a tiny 4 percent float of available shares, artificially inflating the price and creating a trillionaire in Elon Musk overnight — exposing workers’ pensions to immense risk.

This concentrated power is staggering: the “Magnificent Seven” (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla) now account for over 30 percent of the S&P 500, double their weight a decade ago. Tech makes up over 50 percent of the entire Nasdaq.

As the market saw through the SpaceX scheme, its shares fell 24 percent, and Musk lost his trillionaire status — temporarily. When the broader crash hits, pension funds globally will suffer. The longer the mania continues, the more savings will be sucked into these overvalued indexes.

As Marxist economist Gary Wilson explained, Wall Street has priced in profits that may never materialise. The bosses’ response is familiar: cut jobs, attack unions, demand subsidies, and chase war contracts.

The real AI buildout is buried inside a speculative mania. The technology may survive the bubble; these stock prices will not.

“The losses will come as layoffs, frozen hiring and closed factories… and through the 401(k)s and pension funds workers were pushed into… a forced ticket to a casino they neither own nor control.

“The workers who never shared in the boom will be told to sacrifice when the bubble breaks.”

This financial bubble is just one facet of a broader polycrisis. Capitalism has no road forward to solve these interconnected failures.

1. Grotesque inequality: Billionaire wealth jumped 16 percent in 2025 alone, reaching a historic $18.3 trillion. In New Zealand, four people now hold more wealth than 1.8 million citizens combined, while over 900,000 face food insecurity. oxfam.org.nz
2. Permanent war: The ongoing war against Iran has devastated global energy markets, spiking fuel and fertiliser prices. Over 50 percent of the profits from recent oil shocks went to the top 1 percent of Americans; the bottom half received just 1 percent.
3. Looming famine: The closure of the Strait of Hormuz threatens cascading food shocks. As fertiliser prices spike 20-60 percent, the greatest risk is not immediate shortage but collapsing future harvests, leading to higher prices and starvation months later.
4. Debt vortex:
   • Advanced economies: Government debt (100-130 percent of GDP in the US/Europe, 200 percent in Japan) is becoming unmanageable as interest rates rise from historic lows.
   • Developing world: External debt exceeds $11 trillion, with more than 50 nations in distress. Many now spend more on debt servicing than on healthcare or education, trapped in a neocolonial debt cycle.
5. Climate collapse: Global warming is killing thousands in heatwaves, closing schools, and destroying crops. Political “adaptation” plans are a surrender, substituting leadership with fantasy to avoid the emergency-scale mobilisation actually required.

A major capitalist crisis is nearly certain. As always, the heaviest price will be paid by the working class through escalating unemployment and austerity.

This will radicalise people. Our duty as socialists is to offer solutions that point toward the ruling class — our real enemy — and resist the ruling class’s strategy to divide us by scapegoating racial, religious, or sexual minorities.

As Rosa Luxemburg stated, the historical choice under capitalism is “socialism or barbarism.” That choice is re-emerging as socialism or modern-day fascism.

It is no accident that these are the poles of politics globally today. Far-right parties flirting with fascism are mass movements again across Europe.

Yet, hearteningly, popular support for socialism is the majority opinion among young people in the US and UK. The Democratic Socialists of America are becoming a mass party inside the belly of the beast.

The road forks ahead. One path leads to division, austerity, and barbarism. The other, built by a united working class, leads to socialism.

Mike Treen is a retired trade unionist and political commentator. This article was first published at his Substack @miketreen860764 and is republished with the author’s permission.

INTERVIEW: The Chris Hedges Report

After two years of genocide, it is no longer possible to hide complicity in Israel’s crimes against the Palestinians. Entire countries and corporations are — according to multiple reports by UN Special Rapporteur on Palestine Francesca Albanese — either directly or indirectly involved in Israel’s economic proliferation.

In her latest report, Gaza Genocide: a collective crime, Albanese details the role 63 nations played in supporting Israel’s genocide of the Palestinians. She chronicles how countries like the United States, which directly funds and arms Israel, are a part of a vast global economic web.

This network includes dozens of other countries that contribute with seemingly minor components, such as warplane wheels.

• READ MORE: The Chris Hedges Report

Rejection of this system is imperative, Albanese says. These same technologies used to destroy the lives of Palestinians will inevitably be turned against the citizens of Israel’s funders.

“Palestine today is a metaphor of our life and where our life is going to go,” Albanese warns.

“Every worker today should draw a lesson from what’s happening to the Palestinians, because the large injustice system is connected and makes all of us connected to what’s happening there.”

The transcript:
Francesca Albanese, the United Nations special rapporteur on Palestine, in her latest report, Gaza Genocide: a collective crime, calls out the role 63 nations have in sustaining the Israeli genocide. Albanese, who because of sanctions imposed on her by the Trump administration, had to address the UN General Assembly from the Desmond and Leah Tutu Legacy Foundation in Cape Town, South Africa, slams what she calls “decades of moral and political failure.”

“Through unlawful actions and deliberate omissions, too many states have harmed, founded and shielded Israel’s militarized apartheid, allowing its settler colonial enterprise to metastasize into genocide, the ultimate crime against the indigenous people of Palestine,” she told the UN.

The genocide, she notes, has diplomatic protection in international “fora meant to preserve peace,” military ties ranging from weapons sales to joint trainings that “fed the genocidal machinery,” the unchallenged weaponization of aid, and trade with entities like the European Union, which had sanctioned Russia over Ukraine yet continued doing business with Israel.

The 24-page report details how the “live-streamed atrocity” is facilitated by third states. She excoriates the United States for providing “diplomatic cover” for Israel, using its veto power at the UN Security Council seven times and controlling ceasefire negotiations. Other Western nations, the report noted, collaborate with abstentions, delays and watered-down draft resolutions, providing Israel with weapons, “even as the evidence of genocide … mounted.”

The report chastised the US Congress for passing a $26.4 billion arms package for Israel, although Israel was at the time threatening to invade Rafah in defiance of the Biden administration’s demand that Rafah be spared.

The report also condemns Germany, the second-largest arms exporter to Israel during the genocide, for weapons shipments that include everything from “frigates to torpedoes,” as well as the United Kingdom, which has allegedly flown more than 600 surveillance missions over Gaza since war broke out in October 2023.

At the same time, Arab states have not severed ties with Israel. Egypt, for example, maintained “significant security and economic relations with Israel, including energy cooperation and the closing of the Rafah crossing” during the war.

Francesca Albanese talks to Chris Hedges                      Video: The Chris Hedges Report

The Gaza genocide, the report states, “exposed an unprecedented chasm between peoples and their governments, betraying the trust on which global peace and security rest.” Her report coincides with the ceasefire that isn’t. More than 300 Palestinians in Gaza have been killed by Israel since the ceasefire was announced two weeks ago.

The first major ceasefire breach on October 19 led to Israeli air strikes that killed 100 Palestinians and wounded 150 others. Palestinians in Gaza continue to endure daily bombings that obliterate buildings and homes. Shelling and gunfire continue to kill and wound civilians, while drones continue to hover overhead broadcasting ominous threats.

Essential food items, humanitarian aid and medical supplies remain scarce because of the ongoing Israeli siege. And the Israeli army controls more than half of the Gaza Strip, shooting anyone, including families, who come too close to its invisible border known as the “yellow line”.

Joining me to discuss her report, the ongoing genocide in Gaza and the complicity of numerous states in sustaining the genocide in Francesca Albanese, the United Nations special rapporteur on Palestine.

Before we get into the report, let’s talk a little bit about what’s happening in Gaza. It’s just a complete disconnect between what is described by the international community, i.e. “a ceasefire”, the pace may have slowed down, but nothing’s changed.

FRANCESCA ALBANESE: Yes, thank you for having me, Chris. I do agree that it seems that there is a complete disconnect between reality and political discourse. Because after the ceasefire, the attention has been forced to shift from Gaza elsewhere.

I do believe, for example, that the increased attention to the catastrophic situation in Sudan, which has been such for years now, all of a sudden is due to the fact that there is a need for, especially from Western countries and the US, Israel and their acolytes to focus on a new emergency.

‘There is the pretence that there is peace, there is no need to protest anymore because finally, there is peace. There is no peace.’

There is the pretence that there is peace, there is no need to protest anymore because finally, there is peace. There is no peace. I mean, the Palestinians have not seen a day of peace because Israel has continued to fire, to use violence against the Palestinians in Gaza. Over 230 Palestinians have been killed since the ceasefire, 100 of them in one day in 24 hours, including 50 children.

And starvation continues. Yes, there has been an increase in the number of trucks, but far, far below what is needed with much confusion because it’s very hard to deliver aid. All the more, Israel maintains a control over 50 percent of the Gaza Strip while the entire Gaza population is amassed in small portions, guarded portions of the territory.

So there is no peace. Meanwhile, while the Security Council seems to be ready to approve a Security Council resolution that will create a non-acronistic form of tutelage, of trusteeship over Palestine, over Gaza, the West Bank is abandoned to the violence and the ethnic cleansing pushed by armed settlers and soldiers while Israel jails continue to fill up with bodies to torture of adults and children alike. This is the reality in the occupied Palestinian territory today and so it makes absolutely no sense where the political discourse is.

CHRIS HEDGES: Two issues about Gaza. One, of course, Israel has seized over 50% or occupies over 50 percent of Gaza. And as I understand it, they’re not allowing any reconstruction supplies, including cement, in.

FRANCESCA ALBANESE: This is also my understanding. They have allowed in food, water and some essential materials needed for hospitals, mainly camp hospitals, tents. But anything related to sustainability is prohibited.

There are many food items that are also prohibited because they are considered luxurious. And the question, Chris, is, and this is why I harbor so much frustration these days toward member states because in the case of genocide, you have heard yourself the argument, well, the recalcitrance of certain states to use the genocide framework saying — and it’s pure nonsense from a legal point of view — but saying, well, the International Court of Justice has not concluded that it’s genocide.

Well, it has concluded already that there is a risk of genocide two years ago, in January, 2024. But however, even when the court does conclude on something relevant like in July, 2024, that the occupation is illegal and must be dismantled totally and unconditionally, this should be the starting point of any peace related or forward-looking discussions.

Instead of deliberating how to force Israel to withdraw from the occupied Palestinian territory, member states continue to maintain dialogue with Israel as Israel has sovereignty over the territory. See, so it’s completely dystopic, the future they are leading Palestinians out of despair into.

But they are also forcing the popular movement, the global movement that has formed made of young people and workers to stop. Because look at what’s happening in France, in Italy, in Germany, in the UK — any kind of attempt at maintaining the light turned on Palestine from Gaza to the West Bank is assaulted. Protests, conferences, there is a very active assault on anything that concerns Palestine.

So this is why I’m saying we are far, far beyond the mismanagement of the lack of understanding, I mean the negligence in approaching the question of Palestine, it’s active complicity to sustain Israel in the ethnic cleansing of Palestine.

CHRIS HEDGES: Which, as you point out in your report, has been true from the beginning despite a slight change in rhetoric recognising the two-state solution. The UK did this while only cutting back on shipments by 10 percent.

But I want to ask before we get into the report, what do you think Israel’s goal is? Is it just to slow-walk the genocide until it can resume it? Is it to create this appalling, uninhabitable, unlivable ghetto? What do you think Israel’s goal is?

FRANCESCA ALBANESE: I think that now more than ever it is impossible to separate and distinguish the goals of Israel from the goals of the United States. We tend to have a fragmented view of what happens, analysing for example the relationship between Lebanon and Israel, between Iran and Israel, or between Israel and the Palestinians.

‘One of the things that Palestine has made me realise is the meaning of “Greater Israel” because I do believe that what the current leadership in Israel has in mind and it’s supported by many willing or not in the Israeli society, many who are fine with the erasure of the Palestinians.’

In fact, do, I mean, one of the things that Palestine has made me realise is the meaning of “Greater Israel” because I do believe that what the current leadership in Israel has in mind and it’s supported by many willing or not in the Israeli society, many who are fine with the erasure of the Palestinians.

But there is this idea of Greater Israel and for a long time I have been among those who thought, who were wondering what it is, this “Greater Israel” because of course you look at the map by Israeli leaders in several occasions with this Greater Israel going from the Nile to the Euphrates and you say come on they cannot do that, they cannot occupy Egypt, Lebanon, Iraq.

But then everything changes when you look at it from a non-territorial border expansion perspective. And if you think that in fact domination can be exerted, established, other than by expanding the physical borders and through military occupation, but through domination and financial control, control from outside, power domination, you see that the Greater Israel project has already started and it’s very advanced.

Look at the annihilation of Iraq, Libya, Syria, Lebanon. So all those who were historically considered not friends of Israel have been annihilated. And the other Arab countries that remain either do not have the capacity to confront Israel and perish the thought they explored the idea of unity among them or with others. And the others are fine with it.

Ultimately, I think that Greater Israel is the quintessential explanation of the US imperialistic design in that part of the world for which the Palestinians remain a thorn in the side not just for Israel but for the imperialistic project itself because the Palestinians are still there resisting.

They don’t want to go, they don’t want to be tamed, they don’t want to be dominated so they are the last line, the last frontier of resistance, both physically and in the imagination. And therefore, you see, the fierceness against them has scaled up, with the US now getting ready with boots on the ground to get rid of them. This is my interpretation of the general design behind Israel-United States, where Israelis are going to pay a heavy price like many in the region, not just the Palestinians.

CHRIS HEDGES: So you see the imposition of American troops in Gaza as another step forward to the depopulation of Gaza.

FRANCESCA ALBANESE: Yes, yes, yes, I don’t trust any promise made to the Palestinians either by Israel or by the United States because what I’ve seen over the past two years shows me, demonstrates to all of us in fact, that they don’t care at all about the Palestinians. Otherwise, they would have seen their suffering.

‘The beginning of genocide has changed my perception of the world in a way, for me personally, it’s the end of an era of innocence when I really believed that the United Nations were a place where things could still be advanced in the pursuit of peace.’

It’s just not like people like us who can really divide their life. Is it pre-genocide? Does it happen to you as well? Are you talking of pre-genocide or after genocide? Because in fact, the beginning of genocide has changed my perception of the world in a way, for me personally, it’s the end of an era of innocence when I really believed that the United Nations were a place where things could still be advanced in the pursuit of peace.

Now I don’t think so, which doesn’t mean that I think that the UN is over, but in order not to be over, in order to make sense to the people, it is to be led by dignity, principles like dignity, equality and freedom for all. And we are absolutely far from that today.

CHRIS HEDGES: And what is it that brought you to this decision? Is it the acceptance of this faux ceasefire on the part of the UN, or was it before this moment?

FRANCESCA ALBANESE: No, it’s before. It’s before. It’s the fact that for two years most states, primarily in the West, but with the acquiescence of other states in the region have supported the Israeli mantra of “self-defence”.

Sorry, it was a mantra because again, self-defence has a very, I’m not saying that Israel had no right to protect itself. Of course Israel had suffered a ferocious attack on October 7. Some say similar to the attacks it had inflicted on the Palestinians. Others say more brutal, say less brutal. It doesn’t matter.

Israel suffered a horrible, violent attack. Israeli civilians suffered a horrible attack on October 7th. But hey, this didn’t give the possibility to Israel to invoke Article 51 of the UN Charter, meaning the right to wage a war.

This is not legal. And on this I can say I’m surprised by how conservative are member states when it comes to the interpretation of international law, except on this, in the sense that the International Court of Justice (ICJ) has already set the limits of the right of invoking self-defence for member states.

And it can only be done against states where there is a concrete threat that the state will attack which is not the case here. So yes, Israel could defend itself, but not wage a war. And while the war was clearly identifiable more for its crimes than not its tendency to avoid crimes, member states have continued to say nothing and it was very extreme violence against the Palestinians in Gaza but also against the Palestinians in the West Bank. And for two years they’ve not used their power to stop it.

So I’m convinced that in order to have a political shift vis-à-vis Israel, there must be a political shift at the country level, because governments are completely subdued to the dictates of the US. Of course, if the US wanted, this would stop, but the US with this constellation of figures in the government is not going to stop.

And plus look at how the West in particular has contributed to dehumanise the Palestinians. Even today you hear people saying yes, Palestinians have been killed in these numbers because they’ve been used as human shields when the only evidence that they’ve been used as human shields is against Israel because Israel has used Palestinians as human shields in the West Bank and in Gaza alike.

You see Palestinians have returned to be wrapped into this colonial tropism of them being the savages, the barbarians, in a way, they have brought havoc upon themselves. This is the narrative that the West has used toward the Palestinians. And by doing that, it has created, they have created the fertile ground for Israel’s impunity.

CHRIS HEDGES: Let’s talk about the nations that you single out in your report that have continued to sustain the genocide, either through weapons shipments, but also the commercial interests. I think your previous report talked about the money that was being made off of the genocide. Just lay out the extent of that collaboration and to the extent that you can, the sums of money involved.

FRANCESCA ALBANESE: Yeah, yeah, let me start with introducing generally two components, the military component and the trade and investment ones, which are quite interrelated. And states have, in general, I name 62 states, primarily Western states, but with substantive collaboration of states from the Global South, global majority, including some Arab states.

So they have altogether ignored, obscured and somewhat even profited from Israel’s violations of international law through military and economic channels. So military cooperation through arms trades or intelligence sharing has fueled Israel’s war machine during the occupation, the illegal occupation, and especially during the genocide while the United States and Germany alone have provided about 90 percent of Israel’s arms export.

At least 26 states have supplied or facilitated the transfer of arms or components, while many others have continued to buy weapons tested on the Palestinians. And this is why in my previous report, the ones looking at the private sector, I was shocked to see how much the Israeli stock exchange had gone up during the genocide.

And this is particularly because of a growth in the military industry. On the other hand, there is the trade and investment sector. Both have sustained and profited from Israel’s economy. Think that between 2023, 2024, actually the end of 2022 and 2024, exports of electronics, pharmaceuticals, energy minerals and what is called the dual-use have totaled almost US$500 billion, helping Israel finance its military occupation.

Now one third of this trade is with the European Union while the rest is complemented by North American countries, the US and Canada, who have free trade agreements with Israel and several Arab states that have continued to deepen economic ties.

Only a few states have marginally reduced trade during the genocide, but in general the indirect commercial flows, including with states that have supposedly no diplomatic relations with Israel, have continued undisturbed.

It’s a very grim picture of the reality. But let me add just one extra element. I do believe that in many respects, the problem is ideological. As I said, there is a tendency to treat Ukraine, for example, vis-a-vis Russia, in a very different fashion than Palestine versus Israel. And this is why I think there is an element of Orientalism that accompanies also the tragedy of the Palestinian people.

CHRIS HEDGES: Talk a little bit about the kinds of weapons that have been shipped to Israel. These are, and we should be clear that, of course, the Palestinians do not have a conventional army, don’t have a navy, they don’t have an air force, they don’t have mechanized units, including tanks, they don’t have artillery, and yet the weapons shipments that are coming in are some of the most sophisticated armaments that are used in a conventional war.

And as a leaked Israeli report, I think it was +972, provided, 83 percent of the people killed in Gaza are civilians.

FRANCISCA ALBANESE: Yes, yes. First of all, there are two things that are weapons, what is considered conventional weapons and dual-use. And both should have been suspended according to the decision of the International Court of Justice concerning Israel in the Nicaragua v. Germany case.

Meanwhile, there are two things: there is the transfer of weapons directly to Israel, and this includes aircraft, materials to compose the drones, because Israel doesn’t produce anything on its own, it requires components — artillery shells, for example, cannon ammunition, rifles, anti-tank missiles, bombs.

So these are all things that have been provided primarily by the United States. Germany, which is the second largest arms exporter to Israel has supplied a range of weapons from frigates to torpedoes.

And also, and then there is Italy, which has also provided spare parts for bombs and airplanes and the United Kingdom, who has played a key role in providing intelligence. And there is also the question of the UN. Not everything is easy to track because the United States have traveled … the United States are the prime provider of weapons, also because they are the assembler of the F-35 programme.

So there are 17 or 19 countries which cooperate and all of them say, well, you know, I mean, yes, I know that the F-35 is used in Israel, by Israel, but I only contribute to a small part. I only contribute to the wheels. I only contribute to the wings. I only provide these hooks or this engine.

Well, everything is assembled in the US and then sold or transferred or gifted to Israel. And it’s extremely problematic because this is why I say it’s a collective crime, because no one can assume the responsibility on their own but eventually all together they contribute to make this genocide implicating so many countries.

CHRIS HEDGES: So Francesca, Israel is the ninth largest arms exporter in the world. To what extent do those relationships have? I mean, I think one of the largest purchasers of Israeli drones is India. We’ve seen India shift its position vis-a-vis Palestine.

Historically, it’s always stood with the Palestinian people. That’s no longer true under [Narendra] Modi. To what extent do those ties affect the response by the 63 some states that you write about for collaborating with the genocide.

FRANCESCA ALBANESE: So let me first expand on this. Weapon and military technology sale is a core component of Israel’s economy. And since 2024, it has constituted one third of Israeli exports. And of course, there are two elements connected to this, is that these exports enhances Israel’s manufacturing capacity, but also horribly worsens the life of the Palestinians because Israeli military technology is tested on the Palestinians under occupation or other people under other Israeli related military activities.

Now, the fact that the arms export has increased of nearly 20 percent during the genocide, doubling toward Europe. And only the trade with Europe accounts for over 50 percent of Israeli military sales, selling to so many other countries, including in the Global South, the Asia and Pacific states in the Asia-Pacific region account for 23 percent of the purchase, with India being probably the major. But also 12 percent of the weapons tested on the Palestinians are purchased by Arab countries under the Abraham Accords. So what does it tell us?

It explains what you were hinting at in the question, the fact that this is also reflected in the political shift toward Israel that has been recorded at the General Assembly level. If you see how some African countries and Asian countries, including India, are behaving vis-a-vis Israel, it’s 180 degrees turn compared to where they were in the 1970s, 80s and 90s.

This is because on the one hand, Israel is embedded in the global economy, but also it’s a global economy that is veering toward ultra liberal, I mean, it’s following ultra-liberalist ideologies and therefore capital and wealth and accumulation of resources, including military power, comes first.

‘It’s very sad, but this is the reality . . . since the end of the Cold War that there has been an increasing globalisation of the system where the common denominator is force.’

It’s very sad, but this is the reality. And it’s important to know because this is a long, as I was hinting before, my sense is that this is a long term trajectory that didn’t start on October 7, 2023. I mean, probably since the end of the Cold War that there has been an increasing globalisation of the system where the common denominator is force.

I mean, there is this, not a common denominator, but the unifying factor for many is force, how the monopoly of force that comes with weapons, capital and algorithms. And yeah, this is where the world is going.

CHRIS HEDGES: Well, we’ve seen these weapons systems which of course are tested. They’re sold as bad. say the term is battle tested without naming the Palestinians, but they are sold to Greece to hold back migrants coming from North Africa. They are used along the border in the United States with Mexico.

And it’s not just that these weapons are “battle tested” on the Palestinians and we haven’t even spoken about these huge surveillance systems, but the very methods of control, the way they’re used are exported through military advisors.

FRANCESCA ALBANESE: Of course, because in fact, the Israeli population is made almost entirely of soldiers. Of course, there are those who do not enlist in the army for religious reasons or because they are contentious objectors, they’re a tiny minority. But the majority of the people of Israelis go through the army.

And then many of them transfer their know-how or what they have been doing into their next career steps. So the fact that Israel, as I was documenting in my previous report, Israel’s startup economy has a huge dark side to the fact that it’s connected to the military industry and to the surveillance industry.

There is a significant body of Israeli citizens who are going around providing advice, intelligence and training in the Global South both to mercenaries and states proper like Morocco. So there is an Israelisation and Palestinianisation of the international relations or rather of the relations between individuals and states.

And I think the interesting thing, this is why I’m saying Palestine is such a revealer, it’s because, as you say, eventually these tools of control and securitisation have concentrated in the hands of those who are fortifying borders at the expense of refugees and migrants.

So it’s really clear what’s happening here. There are oligarchs who are getting richer and richer and more and more protected in their fortresses where the state is providing the fertile ground to have it, but it’s not states that are benefiting from this inequality, because the majority of the people within states, look at the US, but also in Europe, are not benefiting from anything, in fact.

They’re victims. This is why you equally exploit it. This is why I’m saying it’s another degree of suffering, of course, than the Palestinians. But every worker today should draw a lesson from what’s happening to the Palestinians, because the large injustice system is connected and makes all of us connected to what’s happening there.

CHRIS HEDGES: Well, internally as well. I mean, with Sikh farmers who were protesting Modi were out on the roads, suddenly, over their heads were Israeli-made drones dropping tear gas canisters.

FRANCESCA ALBANESE: Yeah, exactly. Drones are one of the most exported devices from Israel’s technology and they are in use by Frontex to surveil the Mediterranean Sea, as you were saying, the US-Mexican border. But more and more, they’re getting into people’s lives.

Also look at the way certain technologies have been perfected across borders. I remember earlier this summer, this is very anecdotal, I’ve not done research on it, but I knew that we were seeing something quite and horribly revolutionary.

This year, this summer during the protests in Serbia, where students and ordinary citizens were taken to the streets against the government and have been protesting for one year now, people in Serbia. I saw the use of these sound weapons, oxygen-fed weapons.

So there are bombs that produce such a pain in the body who finds itself in the wave that it’s excruciating. And then of course people try to flee, but they also lose senses, et cetera. And I’ve seen this in Serbia.

And now I understand that it’s being used in Gaza as well, where the bomb doesn’t produce fire, it produces a movement of air that causes pain to the body and even to internal organs. It’s incredible. And these are weapons that have been perfected through testing here and there, and Serbia keeps on selling and buying military technology to and from Israel.

CHRIS HEDGES: I just want to close with, I mean, I think your reports, the last two reports in particular, show the complete failure on the part of governments as well as corporations to respond legally in terms of their legal obligations to the genocide. What do we do now? What must be done to quote Lenin?

How, because this, as you have pointed out repeatedly, really presages the complete breakdown of the rule of law. What as citizens must we do?

FRANCESCA ALBANESE: I think that we have passed the alarm area. I mean, we are really in a critical place and I sense it because instead of correcting itself, the system led by governments is accentuating its authoritarian traits. Think of the repressive measures that the UK government is taking against protesters, against civil society, against journalists standing in solidarity with Palestine, for justice in Palestine.

In France and in Italy at the same time, conferences academic freedom is shrinking and in the same days, conferences of reputable historians and military and legal experts have been cancelled owing to the pressure of the pro-genocide groups, pro-Israel groups in their respective countries. People, including in Germany, are being persecuted, including academics, for their own exercise of free speech.

This tells me that there is very little pretense that Western states, so-called liberal democracies, the most attached to this idea of democracy are ready to defend for real. So in this sense, it’s up to us citizens to be vigilant and to make sure that we do not buy products connected or services connected to the legality of the occupation, the apartheid and the genocide.

And there are various organisations that collect lists of companies and entities, including universities that are connected to this unlawful endeavor. BDS [Boycott, Divestment and Sanctions] is one, don’t buy into the occupation who profits profundo, but also students associations.

‘There is a need to speak about Palestine, to make choices about Palestine and not because everything needs to revolve around Palestine, but because Palestine today is a metaphor of our life and where our life is going to go is clearly evident in this.’

And this is something that has taught me, it’s very touching because it’s really the work of students, faculty members and staff that has mapped what each university does. And I think it gives the possibility to act, everyone in our own domain. Then of course there is a need to speak about Palestine, to make choices about Palestine and not because everything needs to revolve around Palestine, but because Palestine today is a metaphor of our life and where our life is going to go is clearly evident in this.

But also we need to make sure that businesses divest. Either through our purchase power, people have to step away and stop using platforms like Airbnb or Booking.com. I know that Amazon is very convenient, but guys, we might also return to buy books in libraries, ordering books through libraries.

Of course, not all of us can, but many do, many can. On the way to work, buy a book in a library, order a book in a bookstore. We need to reduce our reliance on the tools that have been used, that have been perfected through the slaughter of the Palestinians. And of course, make government accountable. There are lawyers, associations, and jurists who are taking government officials to court, businesses to court. But again, I do not think that there is one strategy that is going to be the winning one.

It’s the plurality of actions from a plurality of actors that is going to produce results and slow down the genocide and then help dismantle the occupation and the apartheid. It’s a long trajectory and the fight has just started.

CHRIS HEDGES: Thank you, Francesca, and I want to thank Thomas [Hedges], Diego [Ramos], Max [Jones] and Sofia [Menemenlis], who produced the show. You can find me at ChrisHedges.Substack.com

Chris Hedges is a Pulitzer Prize–winning author and journalist who was a foreign correspondent for 15 years for The New York Times. This interview is republished from The Chris Hedges Report.

Between tomorrow and Friday, the Melbourne Convention and Exhibition Centre (MCEC) will host a weapons bazaar that ought to be called “The Merchants of Death”.

The times for these merchants are positively bullish, given that total global military expenditure exceeded US$2.4 trillion last year, an increase of 6.8 percent in real terms from 2022.

The introductory note to the event is mildly innocuous:

“The Land Forces 2024 International Land Defence Exposition is the premier platform for interaction between defence, industry and government of all levels, to meet, to do business and discuss the opportunities and challenges facing the global land defence markets.”

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The website goes on to describe the Land Defence Exposition as “the premier gateway to the land defence markets of Australia and the region, and a platform for interaction with major prime contractors from the United States and Europe”.

At the Brisbane Convention and Exhibition Centre in 2022, the event attracted 20,000 attendees, 810 “exhibitor organisations” from 25 countries, and ran 40 conferences, symposia and presentations.

From 30 nations, came 159 defence, government, industry and scientific delegations.

Land Forces 2024 is instructive as to how the military-industrial complex manifests. Featured background reading for the event involves, for instance, news about cultivating budding militarists.

Where better to start than in school?

School military ‘pathways’
From August 6, much approval is shown for the $5.1 million Federation Funding Agreement between the Australian government and the state governments of South Australia and West Australia to deliver “the Schools Pathways Programme (SPP)” as part of the Australian government’s Defence Industry Development Strategy.

The programme offers school children a chance to taste the pungent trimmings of industrial militarism — visits to military facilities, “project-based learning” and presentations.

Rather cynically, the SPP co-opts the science, technology, engineering and mathematics (STEM) aspect of government policy, carving up a direct link between school study and the defence industry.

“We need more young Australians studying STEM subjects in schools and developing skills for our future workforce,” insisted Education Minister Jason Clare. It is hard to disagree with that, but why weapons?

There is much discontent about the Land Forces exposition.

Victorian Greens MP Ellen Sandell and federal MP for Melbourne Adam Bandt wrote to Premier Jacinta Allan asking her to call off the arms event.

The party noted that such companies as Elbit Systems “and others that are currently fuelling . . . Israel’s genocide in Palestine, where 40,000 people have now been killed — will showcase and sell their products there”.

Demands on Israel dismissed
Allan icily dismissed such demands.

Disrupt Land Forces, which boasts 50 different activist collectives, has been preparing.

Defence Connect reported as early as June 4 that groups, including Wage Peace — Disrupt War and Whistleblowers, Activists and Communities Alliance, were planning to rally against the Land Force exposition.

The usual mix of carnival, activism and harrying have been planned over a week, with the goal of ultimately encircling the MCEC to halt proceedings.

Ahead of the event, the Victorian Labor government, the event’s sponsor, has mobilised 1800 more police officers from the regional areas.

Victorian Police Minister Anthony Carbines did his best to set the mood.

“If you are not going to abide by the law, if you’re not going to protest peacefully, if you’re not going to show respect and decency, then you’ll be met with the full force of the law.”

Warmongering press outlets
Let us hope the police observe those same standards.

Warmongering press outlets, the Herald Sun being a stalwart, warn of the “risks” that “Australia’s protest capital” will again be “held hostage to disruption and confrontation”, given the diversion of police.

Its August 15 editorial demonised the protesters, swallowing the optimistic incitements on the website of Disrupt Land Forces.

The editorial noted the concerns of unnamed senior police fretting about “the potential chaos outside MCEC at South Wharf and across central Melbourne”, the context for police to mount “one of the biggest security operations since the anti-vaccine/anti-lockdown protests at the height of covid in 2021–21 or the World Economic Forum chaos in 2000”.

Were it up to these editors, protesters would do better to stay at home and let the Victorian economy, arms and all, hum along.

The merchants of death could then go about negotiating the mechanics of murder in broad daylight; Victoria’s government would get its blood fill; and Melbournians could turn a blind eye to what oils the mechanics of global conflict.

The protests will, hopefully, shock the city into recognition that the arms trade is global, nefarious and indifferent as to the casualty count.

Dr Binoy Kampmark lectures in global studies at RMIT University. This article was first published by Green Left and is republished by Asia Pacific Report with permission.

Since the September 11 terror attacks, there has been no hiding from the increased militarisation of the United States. Everyday life is suffused with policing and surveillance.

This ranges from the inconvenient, such as removing shoes at the airport, to the dystopian, such as local police departments equipped with decommissioned tanks too big to use on regular roads.

This process of militarisation did not begin with 9/11. The American state has always relied on force combined with the de-personalisation of its victims.

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The army, after all, dispossessed First Nations peoples of their land as settlers pushed westward. Expanding the American empire to places such as Cuba, the Philippines, and Haiti also relied on force, based on racist justifications.

The military also ensured American supremacy in the wake of the Second World War. As historian Nikhil Pal Singh writes, about 8 million people were killed in US-led or sponsored wars from 1945–2019 — and this is a conservative estimate.

When Dwight Eisenhower, a Republican and former military general, left the presidency in 1961, he famously warned against the growing “military-industrial complex” in the US. His warning went unheeded and the protracted conflict in Vietnam was the result.

The 9/11 attacks then intensified US militarisation, both at home and abroad. George W. Bush was elected in late 2000 after campaigning to reduce US foreign interventions.

The new president discovered, however, that by adopting the persona of a tough, pro-military leader, he could sweep away lingering doubts about the legitimacy of his election.

Waging war on Afghanistan within a month of the Twin Towers falling, Bush’s popularity soared to 90 percent. War in Iraq, based on the dubious assertion of Saddam Hussein’s “weapons of mass destruction”, soon followed.

The military industrial juggernaut
Investment in the military state is immense. 9/11 ushered in the federal, cabinet-level Department of Homeland Security, with an initial budget in 2001-02 of US$16 billion. Annual budgets for the agency peaked at US$74 billion in 2009-10 and is now around US$50 billion.

This super-department vacuumed up bureaucracies previously managed by a range of other agencies, including justice, transportation, energy, agriculture, and health and human services.

Centralising services under the banner of security has enabled gross miscarriages of justice. These include the separation of tens of thousands of children from parents at the nation’s southern border, done in the guise of protecting the country from so-called illegal immigrants.

More than 300 of the some 1000 children taken from parents during the Trump administration have still not been reunited with family.

The post-9/11 Patriot Act also gave spying agencies paramilitary powers. The act reduced barriers between the CIA, FBI, and the National Security Agency (NSA) to permit the acquiring and sharing of Americans’ private communications.

These ranged from telephone records to web searches. All of this was justified in an atmosphere of near-hysterical and enduring anti-Muslim fervour.

Only in 2013 did most Americans realise the extent of this surveillance network. Edward Snowden, a contractor working at the NSA, leaked documents that revealed a secret US$52 billion budget for 16 spying agencies and over 100,000 employees.

Normalisation of the security state
Despite the long objections of civil liberties groups and disquiet among many private citizens, especially after Snowden’s leaks, it has proven difficult to wind back the industrialised security state.

This is for two reasons: the extent of the investment, and because its targets, both domestically and internationally, are usually not white and not powerful.

Domestically, the 2015 Freedom Act renewed almost all of the Patriot Act’s provisions. Legislation in 2020 that might have stemmed some of these powers stalled in Congress.

And recent reports suggest President Joe Biden’s election has done little to alter the detention of children at the border.

Militarisation is now so commonplace that local police departments and sheriff’s offices have received some US$7 billion worth of military gear (including grenade launchers and armoured vehicles) since 1997, underwritten by federal government programmes.

Militarised police kill civilians at a high rate — and the targets for all aspects of policing and incarceration are disproportionately people of colour. And yet, while the sight of excessively armed police forces during last year’s Black Lives Matter protests shocked many Americans, it will take a phenomenal effort to reverse this trend.

The heavy cost of the war on terror
The juggernaut of the militarised state keeps the United States at war abroad, no matter if Republicans or Democrats are in power.

Since 9/11, the US “war on terror” has cost more than US$8 trillion and led to the loss of up to 929,000 lives.

The effects on countries like Afghanistan, Iraq, Yemen, Syria, and Pakistan have been devastating, and with the US involvement in Somalia, Libya, the Philippines, Mali, and Kenya included, these conflicts have resulted in the displacement of some 38 million people.

These wars have become self-perpetuating, spawning new terror threats such as the Islamic State and now perhaps ISIS-K.

Those who serve in the US forces have suffered greatly. Roughly 2.9 million living veterans served in post-9/11 conflicts abroad. Of the some 2 million deployed to Iraq or Afghanistan, perhaps 36 percent are experiencing PTSD.

Training can be utterly brutal. The military may still offer opportunities, but the lives of those who serve remain expendable.

Life must be precious
Towards the end of his life, Robert McNamara, the hard-nosed Ford Motor Company president and architect of the United States’ disastrous military efforts in Vietnam, came to regret deeply his part in the military-industrial juggernaut.

In his 1995 memoir, he judged his own conduct to be morally repugnant. He wrote,

We of the Kennedy and Johnson administrations who participated in the decisions on Vietnam acted according to what we thought were the principles and traditions of this nation. We made our decisions in light of those values. Yet we were wrong, terribly wrong.

In interviews with the filmmaker Errol Morris, McNamara admitted, obliquely, to losing sight of the simple fact the victims of the militarised American state were, in fact, human beings.

As McNamara realised far too late, the solution to reversing American militarisation is straightforward. We must recognise, in the words of activist and scholar Ruth Wilson Gilmore, that “life is precious”. That simple philosophy also underlies the call to acknowledge Black Lives Matter.

The best chance to reverse the militarisation of the US state is policy guided by the radical proposal that life — regardless of race, gender, status, sexuality, nationality, location or age — is indeed precious.

As we reflect on how the United States has changed since 9/11, it is clear the country has moved further away from this basic premise, not closer to it.

Dr Clare Corbould, Associate Professor, Contemporary Histories Research Group, Deakin University. This article is republished from The Conversation under a Creative Commons licence. Read the original article.