Friday, April 08, 2011

Bailing out the Libyan regime?

Matt Taibbi asks why Obama is bailing out Qadhafi. Of course, this puts it far too simply. What the administration has been doing, it seems, is bailing out the regimes across the Middle East to prevent their collapse - it didn't work. The ongoing support for Libya's core banking institutions, particularly the state-owned Central Bank of Libya, which have been exempted from Obama's sanctions, can be seen as a 'bail out' the regime but not for Qadhafi. The regime is a complex of institutions condensing and organising the class structure of Libya, and can be reconstituted without Qadhafi, and even without his charming sons - though the latter seem particularly eager to be in on any post-war settlement. It's hardly a shock. The Obama administration is not interested in a revolutionary transformation of Libya. A deal with the involvement of Moussa Koussa, Gen. Abdul Fattah Younis and the other regime defectors in the transitional council, and anyone else who can be bribed or otherwise induced to defect would surely protect the major institutions of the Libyan state, the interests of its ruling class, and the holdings of international investors.