Israel row: The bid to defund Toronto LGBT Pride is straightforward censorship

The bid to ban pro-Palestine group Queers Against Israeli Apartheid as well as the slogan “Israeli apartheid” is a direct attack on freedom of speech and the right to protest.

A group of Toronto city councillors will file a motion on 28 May to cut the grant to Toronto LGBT Pride unless the organisers agree to ban the participation of a pro-Palestinian activist group, Queers Against Israeli Apartheid (QuAIA). They also want to ban the use of the phrase ‘Israeli apartheid’.

The funding cut of $123,807 would jeopardise the future of Toronto Pride, just four week’s before the annual one million-strong downtown parade and a year before it is due to host the global lesbian, gay, bisexual and transgender (LGBT) festival, WorldPride 2014.

According to Toronto journalist Andrea Houston, the move to withdraw city money from Toronto Pride is being spearheaded by councillors David Shiner and James Pasternak - the latter is seeking to have the phrase “Israeli apartheid” banned.

This proposed ban is supported by Anita Bromberg, from the Jewish human rights organisation, B'nai Brith. She added that there is no place for such language because Pride is not political: "This is a city-wide celebration. I am deeply offended."  

Francisco Alvarez, co-chair of Pride Toronto, says Pasternak and his colleagues are wrong to suggest that by allowing QuAIA to participate in the parade they are endorsing its viewpoint and should face financial penalisation.

“That is just not true,” he says. “We do not hold any view with regard to the Israel/Palestine conflict at all. We simply provide a platform for groups that are organized within our community to express their views, as long as they conform with the laws of the land ... It sounds to me that, since we won’t reject QuAIA, [Pasternak] is making a link that we are supporting their perspective. We support them as a community group. We support other groups as well.”

Another councillor, Frank Di Giorgio, told Canada’s leading LGBT news magazine, Xtra!, that the dispute is one of “competing rights.”

“The message that [QuAIA] sends out ... I believe in protecting rights, but I draw the line when you start protecting one right that infringes on another right. Then you have to look at it in closer detail ... I suspect we will try and use sanctions if we have to, like, for example, not providing funding if they don’t fall in line.”

The co-chair of Queer Ontario, Nick Mulé, believes councillors Di Giorgio and Pasternak are more interested in censorship opinions than protecting rights. It’s inaccurate to describe the dispute as one of “competing rights,” he argues, because the right to religious freedom doesn’t mean the right to suppress other people’s viewpoints.

“They are trying to shut down dialogue and infringe on freedom of expression,” he says. “QuAIA is not a people-hating group. Their message is a critical analysis of political policy. If we don’t have the freedom to critique policy, then we are really in trouble as a society.”

I agree. I am amazed that in a supposedly liberal democracy like Canada the country’s main Pride parade can be threatened with the removal of city funding because some councillors disagree with one organisation and one slogan.

Their demand for a ban is straightforward censorship. It’s a direct attack on free speech and the right to protest - and, some people might say, borderline blackmail.

Pride parades should be open to all individuals and organisations that support LGBT human rights. There should be no political vetting, unless the participants are homophobic, incite violence or oppose the human rights of others.

Lots of people may disagree with QuAIA and even find their rhetoric offensive. But in a democracy they have as much right to free speech as pro-Israeli groups. The main issue is not whether QuAIA is justified in its criticisms of Israeli policy but whether it has a right to freedom of expression.

QuAIA does not support violence against Jews or Israelis. It is merely protesting against the Israeli occupation of the Palestinian territories and the abusive, humiliating subjugation of the Palestinian people by Israeli soldiers and extremist settlers. This occupation and mistreatment hurts both straight and LGBT Palestinians, which makes it a legitimate concern for LGBT people everywhere who care for universal human rights.

I was proud to march with Queers Against Israeli Apartheid in the 2011 New York LGBT Pride parade. I found them passionate, idealistic and humanitarian. There were no anti-Semitic chants. They want a homeland for the Palestinians. They support a just cause: the human rights of LGBT and straight Palestinians.

Although many people find the apartheid accusation offensive, in the occupied territories Israel has an apartheid-style system of separate settlements and separate roads for Jews and non-Jews. Palestinians have their own segregated check-points and border-crossings, plus a separation wall which, whatever its supposed justification, divides two peoples based primarily on their ethnicity.

While pro-Israelis reject the apartheid analogy, it has been echoed by the Nobel peace laureate, Archbishop Desmond Tutu. He says the Israeli system in the occupied territories segregates two peoples and involves many different laws that discriminate against Palestinians, either by intention or default.

Some people question why the fate of the Palestinians concerns me. Well, I am a human rights defender who believes in the principle of universal human rights. To me, human rights are for everyone, including Israelis and Palestinians, whether gay or straight.

Human rights are about more than gay rights. I am not a gayist. I never judge any government or people solely on their stance on LGBT issues. It is important to consider all aspects of human tights, not just gay ones. By any standards, LGBT and straight Palestinians are being denied human rights by Israel, as well as by their own regimes.

Israel is gay-friendly. Very commendably, it has good equality laws for LGBT people: the best in the Middle East. Indeed, vastly better than the surrounding homophobic Arab tyrannies.

But there is a downside too. Although Israel likes to use its gay rights record to project a liberal image to the outside world, it refuses asylum to Palestinians fleeing homophobic and transphobic persecution.

The truth is that Israel’s LGBT-friendly democracy is, to a considerable extent, based on the conquest of the Palestinian people. No amount of progressive LGBT policies can justify Israel’s occupation of Palestinian territories, the building of illegal new settlements and the on-going seizure of Palestinian farms and houses. Moreover, some of the victims of these Israeli expropriations are gay Palestinians.

LGBT equality in a society based on the dispossession of the Palestinian people is not true liberation; it colludes with oppression. Queers Against Israeli Apartheid are right to expose the tainted rainbow flag that flies over Israel.

Peter Tatchell was a founding member of the Palestine Solidarity Campaign (UK) in 1982. He has repeatedly condemned human rights abuses by Israel and the Palestinians, particularly by the Hamas regime in Gaza. More information about his human rights campaigns: www.PeterTatchell.net

Toronto Pride. Photograph: Getty Images.

Peter Tatchell is Director of the Peter Tatchell Foundation, which campaigns for human rights the UK and worldwide: www.PeterTatchellFoundation.org His personal biography can be viewed here: www.petertatchell.net/biography.htm

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We're racing towards another private debt crisis - so why did no one see it coming?

The Office for Budget Responsibility failed to foresee the rise in household debt. 

This is a call for a public inquiry on the current situation regarding private debt.

For almost a decade now, since 2007, we have been living a lie. And that lie is preparing to wreak havoc on our economy. If we do not create some kind of impartial forum to discuss what is actually happening, the results might well prove disastrous. 

The lie I am referring to is the idea that the financial crisis of 2008, and subsequent “Great Recession,” were caused by profligate government spending and subsequent public debt. The exact opposite is in fact the case. The crash happened because of dangerously high levels of private debt (a mortgage crisis specifically). And - this is the part we are not supposed to talk about—there is an inverse relation between public and private debt levels.

If the public sector reduces its debt, overall private sector debt goes up. That's what happened in the years leading up to 2008. Now austerity is making it happening again. And if we don't do something about it, the results will, inevitably, be another catastrophe.

The winners and losers of debt

These graphs show the relationship between public and private debt. They are both forecasts from the Office for Budget Responsibility, produced in 2015 and 2017. 

This is what the OBR was projecting what would happen around now back in 2015:

This year the OBR completely changed its forecast. This is how it now projects things are likely to turn out:

First, notice how both diagrams are symmetrical. What happens on top (that part of the economy that is in surplus) precisely mirrors what happens in the bottom (that part of the economy that is in deficit). This is called an “accounting identity.”

As in any ledger sheet, credits and debits have to match. The easiest way to understand this is to imagine there are just two actors, government, and the private sector. If the government borrows £100, and spends it, then the government has a debt of £100. But by spending, it has injected £100 more pounds into the private economy. In other words, -£100 for the government, +£100 for everyone else in the diagram. 

Similarly, if the government taxes someone for £100 , then the government is £100 richer but there’s £100 subtracted from the private economy (+£100 for government, -£100 for everybody else on the diagram).

So what implications does this kind of bookkeeping have for the overall economy? It means that if the government goes into surplus, then everyone else has to go into debt.

We tend to think of money as if it is a bunch of poker chips already lying around, but that’s not how it really works. Money has to be created. And money is created when banks make loans. Either the government borrows money and injects it into the economy, or private citizens borrow money from banks. Those banks don’t take the money from people’s savings or anywhere else, they just make it up. Anyone can write an IOU. But only banks are allowed to issue IOUs that the government will accept in payment for taxes. (In other words, there actually is a magic money tree. But only banks are allowed to use it.)

There are other factors. The UK has a huge trade deficit (blue), and that means the government (yellow) also has to run a deficit (print money, or more accurately, get banks to do it) to inject into the economy to pay for all those Chinese trainers, American iPads, and German cars. The total amount of money can also fluctuate. But the real point here is, the less the government is in debt, the more everyone else must be. Austerity measures will necessarily lead to rising levels of private debt. And this is exactly what has happened.

Now, if this seems to have very little to do with the way politicians talk about such matters, there's a simple reason: most politicians don’t actually know any of this. A recent survey showed 90 per cent of MPs don't even understand where money comes from (they think it's issued by the Royal Mint). In reality, debt is money. If no one owed anyone anything at all there would be no money and the economy would grind to a halt.

But of course debt has to be owed to someone. These charts show who owes what to whom.

The crisis in private debt

Bearing all this in mind, let's look at those diagrams again - keeping our eye particularly on the dark blue that represents household debt. In the first, 2015 version, the OBR duly noted that there was a substantial build-up of household debt in the years leading up to the crash of 2008. This is significant because it was the first time in British history that total household debts were higher than total household savings, and therefore the household sector itself was in deficit territory. (Corporations, at the same time, were raking in enormous profits.) But it also predicted this wouldn't happen again.

True, the OBR observed, austerity and the reduction of government deficits meant private debt levels would have to go up. However, the OBR economists insisted this wouldn't be a problem because the burden would fall not on households but on corporations. Business-friendly Tory policies would, they insisted, inspire a boom in corporate expansion, which would mean frenzied corporate borrowing (that huge red bulge below the line in the first diagram, which was supposed to eventually replace government deficits entirely). Ordinary households would have little or nothing to worry about.

This was total fantasy. No such frenzied boom took place.

In the second diagram, two years later, the OBR is forced to acknowledge this. Corporations are just raking in the profits and sitting on them. The household sector, on the other hand, is a rolling catastrophe. Austerity has meant falling wages, less government spending on social services (or anything else), and higher de facto taxes. This puts the squeeze on household budgets and people are forced to borrow. As a result, not only are households in overall deficit for the second time in British history, the situation is actually worse than it was in the years leading up to 2008.

And remember: it was a mortgage crisis that set off the 2008 crash, which almost destroyed the world economy and plunged millions into penury. Not a crisis in public debt. A crisis in private debt.

An inquiry

In 2015, around the time the original OBR predictions came out, I wrote an essay in the Guardian predicting that austerity and budget-balancing would create a disastrous crisis in private debt. Now it's so clearly, unmistakably, happening that even the OBR cannot deny it.

I believe the time has come for there be a public investigation - a formal public inquiry, in fact - into how this could be allowed to happen. After the 2008 crash, at least the economists in Treasury and the Bank of England could plausibly claim they hadn't completely understood the relation between private debt and financial instability. Now they simply have no excuse.

What on earth is an institution called the “Office for Budget Responsibility” credulously imagining corporate borrowing binges in order to suggest the government will balance the budget to no ill effects? How responsible is that? Even the second chart is extremely odd. Up to 2017, the top and bottom of the diagram are exact mirrors of one another, as they ought to be. However, in the projected future after 2017, the section below the line is much smaller than the section above, apparently seriously understating the amount both of future government, and future private, debt. In other words, the numbers don't add up.

The OBR told the New Statesman ​that it was not aware of any errors in its 2015 forecast for corporate sector net lending, and that the forecast was based on the available data. It said the forecast for business investment has been revised down because of the uncertainty created by Brexit. 

Still, if the “Office of Budget Responsibility” was true to its name, it should be sounding off the alarm bells right about now. So far all we've got is one mention of private debt and a mild warning about the rise of personal debt from the Bank of England, which did not however connect the problem to austerity, and one fairly strong statement from a maverick columnist in the Daily Mail. Otherwise, silence. 

The only plausible explanation is that institutions like the Treasury, OBR, and to a degree as well the Bank of England can't, by definition, warn against the dangers of austerity, however alarming the situation, because they have been set up the way they have in order to justify austerity. It's important to emphasise that most professional economists have never supported Conservative policies in this regard. The policy was adopted because it was convenient to politicians; institutions were set up in order to support it; economists were hired in order to come up with arguments for austerity, rather than to judge whether it would be a good idea. At present, this situation has led us to the brink of disaster.

The last time there was a financial crash, the Queen famously asked: why was no one able to foresee this? We now have the tools. Perhaps the most important task for a public inquiry will be to finally ask: what is the real purpose of the institutions that are supposed to foresee such matters, to what degree have they been politicised, and what would it take to turn them back into institutions that can at least inform us if we're staring into the lights of an oncoming train?