Sowing the Wind

Recently a friend asked me about the refugee crisis in Europe. “What’s it all about? Why are these people fleeing their countries with their children?

I explained that the existential refugee crisis in Europe is directly caused by US wars in the Middle-East, notably the invasion of Iraq, the destruction of Libya, and the ongoing Syrian civil war fomented by the US and the Gulf States in an effort to overthrow the regime of Bashar Assad.

This line of reasoning perplexes my friend as she, like most American’s, wholeheartedly believes in American exceptionalism. This is understandable since the US propaganda system presents the US as a bastion of peace, democracy and prosperity, while the rest of the world is a dreadful mess riven by endless crises and insoluble problems. The US is portrayed as the protector of democracy even as it pursues ruthless hegemonic military and economic policies at the expense of the rest of the world. Hidden in plain sight is the fact that the current crisis is deeply rooted in U.S. policies since World War II, as this article at Global Research makes depressingly clear.

The crisis is totally out of control, and it’s direct blowback from the US and its allies’ regime change operations in Libya and Syria. Europe gains nothing whatsoever from this and is anxiously trying to mitigate the fallout while giving off the impression of partial compliance with its heavily promoted ‘values’, but conversely, Europe’s pain is the US’ gain. Washington is seeing to it that the continent’s most prominent countries (France and Germany, in particular) are caught up in a demographic nightmare, a time bomb of sorts that can be strategically activated at will in the event that these states ever decide to pursue policies independent of the US’ dictates.

What’s even more remarkable is that the US policy of endless war and regime change is promulgated by a small clique of neoconservatives holdovers from the Bush administration that President Obama allowed to fester within the American deep state–the ongoing nexus of military/intelligence/foreign policy that exists semi-independent of any administration.

Veteran journalist Robert Parry, who broke the Iran/Contra story in the 1980’s, says that by failing to rein in the neoconservatives, President Obama has allowed this narrative of regime change to become the dominant meme by claiming that the US is promoting democracy by ridding the world of evil dictators.

“Instead of the promised wonders of “democracy promotion” and “human rights,” what these “anti-realists” have accomplished is to spread death, destruction and destabilization across the Middle East and parts of Africa and now into Ukraine and the heart of Europe. Yet, since these neocon forces still control the Official Narrative, their explanations get top billing – such as that there hasn’t been enough regime change.”

Parry, who has been observing the neoconservatives since the Reagan administration where they were responsible for murderous US policies in Central America, says that refugees are a direct result of these regime change schemes.

“The poor Central Americans, as they tried to shed generations of repression and backwardness imposed by brutal right-wing oligarchies, faced U.S. neocon ideologues who unleashed death squads and even genocide against peasants, students and workers. The result – not surprisingly – was a flood of refugees, especially from El Salvador and Guatemala, northward to the United States. The neocon “success” in the 1980s, crushing progressive social movements and reinforcing the oligarchic controls, left most countries of Central America in the grip of corrupt regimes and crime syndicates, periodically driving more waves of what Reagan called “feet people” through Mexico to the southern U.S. border.” 

That the US bears responsibility for the refugee crisis in Europe is not something that most American’s want to hear. In fact, American’s are especially loath to understand foreign policies that present the US in an unfavorable light. In their world, the US is a benevolent sheriff keeping order in a dangerous world, rather that a brutal empire whose very policies are creating these heartbreaking pictures of  human tragedy.

Maybe Americans, even ones who are smart and well informed, just can’t bring themselves to accept this awful reality. In Politics and the English Language, George Orwell writes about how societies fail to see their own crimes as they meanwhile castigate the enemy for their crimes.

Meanwhile, the US views all foreign policy through a military prism. We don’t do diplomacy, that’s for sissies. If force doesn’t work, then more force will. The problems with this approach ought to be obvious. We’re creating a more chaotic and dangerous world while enriching the military/intelligence/industrial, deep state that’s already raising profound questions about our constitutional system of democracy.

These types of refugee problems are only beginning. The policies the US has chosen to implement are only going to create more conditions that make people want to flee their homes and try to make it to western countries like ours. Contrast this coming reality with politics in the US. Presently we’re enduring a presidential race where the Republican candidates are all espousing anti-immigrant rhetoric and one candidate–Trump–is talking about building a giant wall between the US and Mexico.

What’s going to happen when the US gets a real emigration crisis like the one in Europe?

 

 

 

 

 

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Even a blind pig

Even a blind pig will find a nut from time to time.

“But if you think Iran is the only source of trouble in the Middle East, you must have slept through 9/11, when 15 of the 19 hijackers came from Saudi Arabia. Nothing has been more corrosive to the stability and modernization of the Arab world, and the Muslim world at large, than the billions and billions of dollars the Saudis have invested since the 1970s into wiping out the pluralism of Islam — the Sufi, moderate Sunni and Shiite versions — and imposing in its place the puritanical, anti-modern, anti-women, anti-Western, anti-pluralistic Wahhabi Salafist brand of Islam promoted by the Saudi religious establishment.

It is not an accident that several thousand Saudis have joined the Islamic State or that Arab Gulf charities have sent ISIS donations. It is because all these Sunni jihadist groups — ISIS, Al Qaeda, the Nusra Front — are the ideological offspring of the Wahhabism injected by Saudi Arabia into mosques and madrasas from Morocco to Pakistan to Indonesia.

And we, America, have never called them on that — because we’re addicted to their oil and addicts never tell the truth to their pushers.”

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Mittens

Mitt Romney is deeply upset with the lack of civility by Republican presidential candidate, Donald Trump, and is threatening another run for president if things don’t improve.

“Romney himself has become one of Trump’s most vocal detractors inside the party. “He’s someone to whom civility means a lot. The whole Trump thing really bothers him,” a close Romney adviser told me.”

I don’t believe Mittens for a moment. It’s not Trump’s incivility that has Mittens panties in a bunch, it’s Trump’s attack on carried interest that infuriates him.

Trump has been speaking out about the tax code and the way it is biased towards the financial industry with hedge funders like Mittens able to pay a much lower rate than say a teacher or secretary. Last week Trump almost sounded like a progressive when talking about the tax code:

“I would change it. I would simplify it. I would take carried interest out, and I would let people making hundreds of millions of dollars a year pay some tax, because right now they are paying very little tax and I think it’s outrageous. I want to lower taxes for the middle class. I do very well, I don’t mind paying some taxes. The middle class is getting clobbered in this country. You know the middle class built this country, not the hedge fund guys, but I know people in hedge funds that pay almost nothing and it’s ridiculous, OK?”

Compare what Trump has to say about tax fairness, to the basic GOP talking point of lowering all taxes, including those for the hedge funds guys, and the decades long project to convince ordinary Americans that lowering taxes on “job creators” is how to ensure widespread prosperity. That this has proven to not be the case matters not the least. It’s an ongoing project as this article by the Weekly Standard makes abundantly clear.

“Contrary to the fevered imagination of the exasperated American Left, conservative candidates for public office do not tend to take a free-market approach to fiscal policy because it helps “the rich,” but because they believe in earnest that it helps the whole country. By and large, this same rule applies to conservative voters, many of whom may not always benefit directly from the lack of meddling and modest confiscation, but who conceive nevertheless that a capitalistic economy is likely to deliver better results in the long term than is a power-hungry Uncle Sam… “

Tell me another one.

And now Donald Trump is challenging this tax cutting meme in a way that resonates with the lower income Republicans that are also attracted to Trump’s nativist resentment and xenophobia.

The horror.

The conservative project for the last 40 years has been about lowering taxes on the wealthy.

Full stop.

Now, a blowhard like Trump is ruining everything. Didn’t he listen to Mittens in 2012 explaining how the US is divided between the makers and the takers? Doesn’t he understand that the makers like Mittens must be able to pay their taxes at a capital gains rate of 15% rather than an income tax of 35% lest they be forced to flee the country and leave us takers to stew in our misery?

I have one more thing to say about this latest turn of events.

Run Mittens, run.

Sorry, two things to say.

Pass the popcorn.

 

 

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Interesting Times

Holy shit!

Leave on vacation and look what happens.

Here, I thought August is supposed to be a slow month.

It’s hard not to look around right now and feel like the end of the world is upon us with the stock market turmoil leading a former British official to call for people to stock up on food and water in case of a social collapse. Then there’s Donald Trump waging a dark fascist campaign that appeals to American No-Nothing tendencies.

Still, the stock market is not the real economy, even though long conflated as such. In fact all the growth in the stock market has come at the expensive of the real economy that employees Americans and makes things.

In an interview with Democracy Now!. economist Michael Hudson talked about the reasons for the gyrations in the stock market that saw the Dow Jones Industrial Average initially fall a record 1,100 points before closing down nearly 600 points on Monday.

“The real problem is that we’re still in the aftermath of when the bubble burst in 2008… all of the growth in the economy has only been in the financial sector, in the monopolies—only for the 1 percent. And it’s as if there are two economies, and the 99 percent has not grown. And so, the American economy is still in a debt deflation. So the real problem is, stocks have doubled in price since 2008, and the economy, for most people, certainly who listen to your show, hasn’t grown at all.”

And, Donald Trump has certainly livened up the Republican presidential campaign by waging a populist insurgency against party elites. Bernie Sanders, the Democratic contender, who’s getting large crowds by laying out a series of progressive policies, is doing the same thing from the Democratic side in his challenge to the preordained candidacy of Hillary Clinton.

Trump’s appeal is not all nativist resentment. His campaign has articulated progressive policies, like strengthening Medicare and Social Security and ending the carried interest scam that allows investment bankers and hedge fund managers to pay a much smaller percentage of income tax than a teacher or secretary, to the consternation of Republican insiders.

May you live in interesting times is purported to be a Chinese curse, but it does have a certain appeal. With change comes the possibility for new policies and certainly American economics and politics has become stultifying, what writer Andrew O Hehir describes as the Washington consensus.

“Through a confluence of material and ideological interests, the Western world’s financial powers and political parties and media organizations, along with the interlocking permanent governments sometimes called the “deep state,” have come together around a conception of political reality they describe as the only reality. This is the “Washington consensus,” a blend of postwar American foreign policy and Reagan-Thatcher economics: Globalized free trade and venture capitalism, government austerity, widespread privatization and “developing markets,” with the money flowing upward and cheap consumer goods for the so-called middle class.”

American’s of all political bents are waking up to the reality that our nations elite could not give a fuck about them and they are acting accordingly in their support of candidates that promise to shake things up.

It could get interesting

 

 

 

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Wedgie

To accomplish their economic agenda conservatives have historically used race, crimeabortion, and gay marriage as divisive wedge issues. It’s the same today. Indeed, government at every level is under attack by the forces of organized wealth and their political enablers who despise a US government that works for the people, and have no compunctions about using every wedge issue they can dream up.

As an example of how this works, here’s gambler–Bill Bennet, back in the 1980’s describing how school vouchers can fracture the New-Deal Democratic coalition. This passage is illustrative because the same dynamic applies with other wedge issues.

“Former Reagan Education Secretary William Bennett understood what was missing from the voucher political chemistry: minorities. If visible elements of the Black and Latino community could be ensnared in what was then a lily-white scheme, then the Right’s dream of a universal vouchers system to subsidize general privatization of education, might become a practical political project. More urgently, Bennett and other rightwing strategists saw that vouchers had the potential to drive a wedge between Blacks and teachers unions, cracking the Democratic Party coalition. In 1988, Bennett urged the Catholic Church to “seek out the poor, the disadvantaged…and take them in, educate them, and then ask society for fair recompense for your efforts”–vouchers.”

Think of wedge issues as a means of guerrilla warfare, all to advance a conservative economic agenda. Rick Perlstein, the superb chronicler of the modern conservative movement, explains that modern American conservatives, who he describes as the New Right, used whatever they could find to exploit, including–“…all the pent-up venom of a generation of lower-middle-class people who feel betrayed and exploited.” One of the leaders of the new right, Howard Phillips, articulated their strategy– “We organize discontent.”

The backers of these movements cared little for the social issues. What they cared about was low taxes and minimal interference in their business affairs by the federal government. It’s the same thing today, using social issues to advance a conservative economic agenda. Do you really think the Koch brothers give rats-ass about gay marriage or abortion? They have the same concerns business owners did when FDR enacted the New Deal economic reforms that created the American middle-class. They resent the intrusion of government into their affairs now just as they did then. One of the best economists you never heard of wrote a very influential paper explaining this hostility to government intrusion. Michael Kalecki’s Political Aspects of Full Employment, is worth examining to see what has changed and what is still the same. Kalecki was a Polish economist in the Keynesian tradition, who realized that many of the arguments made against full-employment were political in nature rather than economic.

“…discipline in the factories’ and ‘political stability’ are more appreciated than profits by business leaders.  Their class instinct tells them that lasting full employment is unsound from their point of view, and that unemployment is an integral part of the ‘normal’ capitalist system.”

It’s all about power and control. Having government enact policies that aid average Americans is an affront to the people that own this country. In the modern way of doing things government is supposed to subsidize corporate power and let the market take care of the social good. Both parties agree with only the details of how this happens dividing them.

Wedge issues are so damn effective because one political party, the Republicans, have mastered the art of fear, appealing to the 20 or 30 percent of Americans who are reactionary. These people are, in a word, afraid. Republican politicians cynically exploit these fears by ominously warning of hordes of ISIS terrorists joining forces with Mexican rapists, or something. Sorry for the graphic visual but I listened to Fox News for a minute when my mom was here last week.

The Democrats are so vulnerable to wedge issues because they’ve abdicated their role of representing American workers who are under siege with rising inequality, loss of full time jobs and a whole host of economic insecurities. Mark Ames goes further and makes it abundantly clear that wedge issues in America are effective in a large part because of spite and that conservatives understand this better than progressives, who want to pretend that in the absence of economic populism American’s just want to do the right thing.

What if Americans are not a likeable people? The left’s wires short-circuit when confronted with this terrible possibility; the right, on the other hand, warmly embraces Middle America’s rank soul and exploits it to their full advantage. The Republicans know Americans better than the left. They know that it’s not so much Goering’s famous “bigger lie” that works here, but the dumber and meaner the lie, the more the public wants to hear it repeated.”

Democrats need to get back to economic populism and forget about being nice. Americans know they’re being screwed and they need a villain. Bill Curry, says that Democrats can tap into voter discontent, but they better start talking like Bernie.

“As I’ve written here before, the country agrees with Democrats on nearly every issue now under debate — and by margins often exceeding 60/40. The list includes not just progressive economic policies like a minimum wage and paid family leave, but climate change, gun safety, gay marriage, the lifting of the Cuban embargo, all of the president’s immigration reforms, every tax proposal and nearly every budget priority. We say we’re polarized, but on these big issues we’re as near to consensus as we ever get. Voters who agree with Democrats vote Republican because of their fury at the condition of their government. Democrats are the party of government. If the Democrats won’t fix the government, voters won’t let them near it.”

Update: It’s about to get worse.

“As an unprecedented shift in public opinion brought about the legalization of gay marriage, a vigorous counter-current has been intensifying under the banner of “religious freedom”—an incredibly slippery term.”

 

 

 

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Taking the Risk Out of Democracy

Ever wonder why corporations spend billions on business friendly propaganda each and every year?

Because it works, that’s why. Corporate propaganda has succeeded in convincing a majority of Americans that their interests lie with corporations–the business of America is business–and any attempt to ameliorate this state of affairs is tantamount to socialism, and as such is un-American.

The United States is nominally a representative democracy, however corporate interests have an outsized influence on the policies we enact. These corporations spend enormous amounts of money to get the American people to identify free enterprise (meaning state subsidized private power with no infringement of managerial prerogatives) as the American way. In addition to the day in and day out pro-business advertising and PR, corporations have waged intensified propaganda campaigns, deploying the term free enterprise as a means of gaining support for corporate policies.

I was reminded of the power of this business propaganda when I read the account of a tour guide at a historical slave plantation.

“One theme that came up with some regularity was that folks would assume that since so-and-so was very wealthy, he was probably pretty good as a slaveholder to work for. The angle that they were coming from — and I think this is something that they were taught, not that they came up with — was that if a person had the means to “care” well for enslaved people, then that’s what they would use that money for. In some ways, that’s such a sweet, naive thing to think, right?

The rich slave owner as a benevolent patron is this stereotype that people have been taught without realizing it. It’s so weird to think that a rich slave owner would be nicer to work for. If you think about the bigger companies today, they’re usually the worst to their employees. It’s so backwards. It’s almost tantamount to saying that rich people are nicer, and then, the converse, that poor people are meaner. It’s such a weird thing.”

Except it’s not a weird thing at all from a corporate point of view.

It’s money well spent.

Alex Carey wrote a book about business propaganda, entitled Taking the Risk Out of Democracy. Carey argued that the 20th Century has seen three related developments; ‘the growth of democracy, the growth of corporate power, and the growth of corporate propaganda as a means of protecting corporate power against democracy.

Yves Smith of Naked Capitalism uses Carey’s Taking the Risk Out Of Democracy to contrast a New York Times article about why Americans don’t take vacations, and makes some interesting and salient points about the effectiveness of corporate propaganda.

“I’ve been in what little spare time I have reading history, particularly on propaganda. One must read book is by Alex Carey. Carey taught psychology in Australia, and he depicts the US as the breeding ground for the modern art of what is sometimes more politely called the engineering of consent…Anyone who has studied the history of public relations in the US will not only tell you it works, but also will be able to provide numerous examples, starting with the Creel Committee in World War I, which turned a pacifist US into rabid German-haters in a mere 18 months. But Fischer would rather appeal to Americans’ vanity and exceptionalism. Carey, by contrast, documents the intensity of messaging efforts, the channels used, and tracks how polls and headlines changed. And contra Fischer, he finds Americans to be particularly susceptible to propaganda (by contrast, Australians’ native skepticism of authority, keen sense of irony, and strong community orientation gives them a wee bit of resistance, although Carey described how they were being worn down too).”

One of the most pernicious falsehoods promulgated has been the idea that only the government is capable of oppression, while ignoring the potential for corporate tyranny. Looking around at our corporate controlled world this is obviously not the case.  The real question is who rules, to what degree, and to whose benefit? Conservatives and neoliberals want to eliminate government as much as possible, to let the market rule. But we’ve seen the result of that. America, today, is much closer to a plutocracy than a democracy. Corporations write our laws, buy our elections, and control the political focus.

We’ve had a sea change in the way we Americans view the world thanks to this ever present corporate propaganda, most visibly in the embrace of neoliberalism by economists and policy makers. The idea that governments should protect citizens against the excesses of free enterprise has been replaced with the idea that government should protect business activities against the excesses of democratic regulation. Thus, corporations have succeeded in taking the risk out of democracy, in that we the people pose no danger to their agenda.

It’s their world. We just live in it

 

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We’re All Greeks Now

Who needs an army when you have economists and central bankers? This is the reality we face in an era where debt and austerity are the weapons wielded by modern imperialism.

In the aftermath of the Greek referendum rejecting austerity, an odious debt still hangs over the Greeks like a sword. In a real “free market” the banks that loaned Greece the money would take a huge loss, their managers would be fired and the banks shareholders would have taken a beating. But these day the bankers are sacrosanct and it’s the debtors who end up paying.

Democracy and the individual lives of citizens must be sacrificed to the demands of the banks.

The world elite are united in their belief that the bankers must have control over democratic states. Democracy is fine as long as it conforms to capitalist diktats. If it doesn’t, well, ask the Greeks what it’s like to suffer for the last 5 years.

Even the IMF has admitted that Greece needs a debt write down. This debt, owed largely to French and German banks, is un-payable and should never have been forced on the Greek citizens.

The Greeks had the gall to elect a left-wing government to end the brutal austerity that has ruined their economy and left them with a larger debt than before. Syriza came to power with a democratic mandate to defy the austerity imposed by the “troika” – composed of the European Commission, the European Central Bank and the International Monetary Fund. So for that the Greeks must suffer for thinking that they could avoid their proper punishment through democratic politics.

Here’s economist Paul Krugman summing up the medieval treatment of the Greeks by the European Central Bank.

“The truth is that Europe’s self-styled technocrats are like medieval doctors who insisted on bleeding their patients — and when their treatment made the patients sicker, demanded even more bleeding. A “yes” vote in Greece would have condemned the country to years more of suffering under policies that haven’t worked and in fact, given the arithmetic, can’t work: austerity probably shrinks the economy faster than it reduces debt, so that all the suffering serves no purpose. The landslide victory of the “no” side offers at least a chance for an escape from this trap.”

Nevertheless, the Greeks are derided as lazy and shiftless by the corporate media. It’s all a fucking economic morality play.

Economist Michael Hudson has been on a tear in graphically depicting how the Greeks are being forced to to pay for the sins of the bankers who loaned Greece the money that was lent to Greece but went right through Greece to pay the French banks and the German banks, and to enable the American Wall Street banks to make a killing.

“What they want is the same thing that warfare wants. They want the land, and they want a tribute in the form of interest. Basically, the Eurozone went to Greece and said: look, we’re going to–as in case Spain’s Podemos party or other countries who want to not pay their debts–we’re going to use you as an example and we’re going to wreck you. Financial technocrats were put in place to serve the domestic oligarchy and foreign bondholders. Greece was under financial attack just as deadly as a military attack. Finance is war.”

Debt and austerity are like warfare without the tanks and dive bombers. It’s an attempt by our financial overlords to trump democratic control and make the market the master.

We’ve witnessed the same sort of  neoliberal policies here in the US in the aftermath of the Wall Street crash with austerity and cutbacks leading to privatization of essential public infrastructure and seizure of land and property by the banks. Exhibit-A is Detroit, a once large vibrant manufacturing metropolis that’s been transformed into a hellhole. This quest for control is also visible in trade policies like the TPP, TTIP and TISA that essentially represent a corporate coup d’état.

What can the Greeks do in the face of this financial terrorism?

Here’s what Naked Capitalism writer and financial analyst Wolf Richter advises.

Instead of stewing in their own misery, Greeks need to repatriate their money into Greek banks, all of their money. They need to clean out their bank accounts in Switzerland, Luxembourg, and London, and deposit this money into Greek banks. Hundreds of billions of euros. That would immediately solve the bank-run crisis.

They need to pay taxes on this money. And they need to pay their taxes for the last 20 years, all of their taxes, including penalties. They need to do so pronto, and with a smile. This is about Greece after all, the country they’re so proud of, and that needs them in this hour of duress. Knowing this, they’ll gladly stop cheating on their taxes from now on, at all levels, from the fruit seller on the street or the doctor that takes cash for her services or even the oligarch. Budget crisis solved!

We can do the same thing by investing our money in local markets and credit unions. Our economy doesn’t need to be run by and for the too big to fail banksters. An economy that works for all Americans makes things and provides services that we need. The US has a sovereign currency where we can create money ourselves rather that giving this power to bankers. Also, we don’t really need these sorts of global corporate trade treaties like the TPP. The US all by itself is an enormous market that we the people could participate in rather than watching our jobs depart for low wage, no regulation Third World countries.

It’s up to us. We can create an economy that works for us or we can await the fate of the Greeks.

Update:

According to investigative journalist Greg Palast, what’s happening to Greece is a bug not a feature. Palast managed to interview the economist who designed the Euro who confirms some of my longtime suspicions about the European Union.

“The imposition of the euro had one true goal: To end the European welfare state. For Mundell and the politicians who seized on his currency concept, the euro itself would be the vector infecting the European body politic with supply-side Reaganomics. Mundell saw a euro’d Europe as free of trade unions and government regulations; a Europe in which the votes of parliaments were meaningless. Each Eurozone nation, unable to control neither the value of its own currency, nor its own budget, nor its own fiscal policy, could only compete for business by slashing regulations and taxes. Mundell said, “[The euro] puts monetary policy out of the reach of politicians… Without fiscal policy, the only way nations can keep jobs is by the competitive reduction of rules on business.”

 

 

 

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Crisis in Democracy

Our elite are busy consolidating the gains from their 30 year embrace of neoliberalism while deploying their bought and paid for government to make certain there’s nothing we can do about it. In a perverse bit of projection they describe periods where American citizens have participated in the political arena in an attempt to bring about progressive change as a “crisis in democracy.”

This state of affairs where the rich and the corporations they own make all the important economic decisions, while citizens are relegated to voting for two candidates that offer the same limited choices is what we’ve come to describe as democracy. This is our milieu, where the power of our elite is more important than democracy itself, and any attempt to alter this rigid hierarchy is met with massive resistance.

This explains President Obama and corporate legislators rush to pass fast-track legislation to ensure passage of the TPP and other so-called trade treaties that grant corporations enormous power while taking away sovereignty from we the people. The Trans-Pacific-Partnership is the economic aspect of the Obama administration’s pivot to Asia, in an attempt to lock in the power of multi-national corporations against a rising China.

“The Obama administration is essentially prostituting the American consumer to foreign corporations to usher in a deal that would impose one-size-fits all international rules that even limit the US government’s right to regulate foreign investment and the appropriation of natural resources, solidifying a long-discussed model of finance capital-backed global governance.”

The TPP would mandate that signatory countries maintain a privatized banking system. Author Ellen Brown, explains that our financial overlords want to ensure there is no going back to a regulated financial system.

And that could help explain the desperate rush to “fast track” not only the Trans-Pacific Partnership (TPP) and the Trans-Atlantic Trade and Investment Partnership (TTIP), but the Trade in Services Agreement (TiSA). TiSA would nip attempts to implement public banking and other monetary reforms in the bud.”

Brown asks some questions about the power that the banking and financial system has over our lives.

“If money is just an IOU, why are we delivering the exclusive power to create it to an unelected, unaccountable, non-transparent private banking monopoly? Why are we buying into the notion that the government is broke – that it must sell off public assets and slash public services in order to pay off its debts? The government could pay its debts in the same way private banks pay them, simply with accounting entries on its books. What will happen when a critical mass of the populace realizes that we’ve been vassals of a parasitic banking system based on a fraud – that we the people could be creating money as credit ourselves, through publicly-owned banks that returned the profits to the people?”

I’ve written before about this mistaken view of money, debt and fiat currency in a post entitled Out of Thin Air. The important point to remember is that the creation of money and credit are political rather than economic decisions. We have choices, no matter how hard our elite try to deny this reality.

Neoliberals insist that there is no alternative, and are busy employing government to ensure that all aspects of our lives are subsumed to the market.

In Undoing the Demos: Neoliberalism’s Stealth Revolution, political theorist and University of California, Berkeley, professor Wendy Brown, argues that neoliberalism reduces all affairs to the market and thus directly undermines democracy.

“Even more than the extreme inequalities and empowerment of capital that neoliberalism brings about, it’s the casting of every sphere of existence and every phenomenon as a market — and human beings as nothing other than market actors — that undoes democracy.”

Maybe that’s the whole point of neoliberalism.

“That project is to free up the entire globe for the profit-making activities of a few gigantic corporations and their billionaire owners, with minimal interference from governments or any other social institution.”

And, what happens to those who view neoliberalism for what it is–looting?

“The neoliberal project has always had a special place for disciplining the proles. Prison, parole, draconian court systems, all are directed at keeping the proles from interfering with the ability of the rich and their corporations to make lots of money.”

The bifurcated legal system we maintain in the US is not an accident. According to our neoliberal intellectuals the legal system is working exactly as it should. Here’s Seventh Circuit Court of Appeals Judge, Richard Posner explaining that the rich are to be disciplined by tort law, after the fact court enforcement of laws, but the poor, having nothing, need jail for discipline.

The major function of criminal law in a capitalist society is to prevent people from bypassing the system of voluntary, compensated exchange — the “market,” explicit or implicit — in situations where, because transaction costs are low, the market is a more efficient method of allocating resources than forced exchange. Market bypassing in such situations is inefficient — in the sense in which economists equate efficiency with wealth maximization — no matter how much utility it may confer on the offender. … (P. 1195, footnote omitted)

We do have a crisis in democracy just not the one our elite imagine. No, our crisis is that we effectively have de-jour democracy and de-facto plutocracy.

This crisis of democracy is where we are now. Do we the people want to control our government and use it to better our lives or are we content to sit back and be amused while our elite deploy the government to force us to participate in a savage world where we’re all reduced to marketable entities?

Update: This sucker just might pass thanks to weasel corporate Democrats.

“So: these ‘trade’ deals will not directly and overtly block any increase in the regulations of food-safety, the environment, drug-safety, worker-safety, workers’ wages, medical care, education, or any of the many other things that governments must regulate in order for the public to be protected, and served. Instead, this legislative blockage will be indirect, and covert. But it will be just as real, and just as effective, as if it were an outright legal prohibition. The individual nations will be forced to yield to the ‘higher’ rights (the real sovereignty) of the top international investors.”

 

 

 

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The Threat of a Good Example

The political and economic elite in the US is threatened by an alternative model for organizing society. This is the perverse flip side to Margaret Thatchers admonishment–“there is no alternative.” However, the constant repetition of the this free market dogma in recent years is not a sign of strength as much as desperation. You might have noticed this desperation in some of the recent statements by financial leaders equating taxing capital gains with Hitler invading Poland.

The United States maintained this hostility towards any alternative to capitalism throughout the Cold War. Back then it was all part of opposing the Soviet Union and its, supposed, world-wide expansionist agenda. There was a term for it–containment. Examining declassified documents of the Cold War reveals that it was actually the threat of a good example that had US planners scared shitless. By this idea of a good example, I mean any country that freely chooses socialism through elections and then pursues economic and foreign policies independent of the US. Here’s Henry Kissinger perfectly expressing this fear our elite had that people in another country would chose an economic system different than the Washington Consensus.

“I don’t see why we need to stand by and watch a country go communist because of the irresponsibility of its own people.” 

Noam Chomsky examined this elite fear of a good example in Deterring Democracy.

“In the book, Chomsky explores the idea that the US is the only remaining world superpower that works to maintain its dominance, even ruthlessly employing violence such as outright invasions and overthrowing governments pursuing independent economic policies. He also discusses the large difference between public opinion on the Cold War, establishment American educated opinion and reality.

What’s important to note is that when the Soviet Union ceased to be, US foreign policy didn’t change. This calls into question the rational for US behavior during the Cold War. Supposedly we had to do all this horrible things and support all those murderous dictators in Third-World countries or else the Soviets would take over the world.

Cuba is the best example of how far US planners were willing to go to prevent the threat of a good example–60 years of sanctions, terrorist attacks and attempted assassinations–all to demonstrate the folly of pursuing policies that Uncle Sam found threatening. These policies have spanned more than five decades, from the launching of the Bay of Pigs invasion in 1961, to the numerous U.S.-organized assassination attempts against Fidel Castro, to the blowing up of a jetliner and other terrorist attacks from Cuban exiles operating out of the United States.

This hostility to an alternative to US controlled corporate capitalism has intensified since the demise of the USSR. During the Cold War, the US had to at least pretend to value nonaligned countries in the Third World. The US also maintained domestic policies that benefitted the majority of working and middle class Americans as a counter to Soviet propaganda that depicted capitalism as only benefitting the wealthy.

Almost makes one pine for the good old days of the Cold War.

Many Americans are starting to realize that they are now viewed as the enemy. Under  neoliberalism, policies carried out against Third World countries have been imported, while vital government social programs are shredded.

This segues into economic and foreign policies where there’s the same hostility to the threat of a good example. Want to pursue policies that benefit the majority rather than the 1%? Too bad. Want to use the Fed to enact fiscal policies that put Americans back to work rather than austerity? Too bad. Want to spend less on war and more on education and public health?

You know the answer.

You see this fear of a good example domestically with the portrayal of Elizabeth Warren and Bernie Sanders as some sort of bomb throwing anarchists that yearn to create a communist gulag. This nascent attempt to transform the Democratic party back to an entity that represents middle and working class Americans rather than another neoliberal party that represents the 1%, is viewed with hysteria.

“With Washington already broken, the last thing we need is a left-wing version of the tea party,” Delaney wrote in a Washington Post op-ed published online Thursday evening. “But I am worried about where some of the loudest voices in the room could take the Democratic Party.”

Suddenly, everyone is freaking out about modest efforts by progressive Democrats to take their party back from the neoliberals. Again, any threat of an alternative is to be ruthlessly smashed. For an example, see this editorial in the New York Times. (One can only imagine what the Wall Street Journal is saying.)

“…it is important to note that Wehner seems to look back no further than our current era of neoliberalism, which started in the ’70s. This is very convenient for someone who wants to argue that the Democrats have gone too far to the left, but it is intellectually dishonest. If we were to include the preceding New Deal period, from FDR up until the early seventies, contemporary Democrats would suddenly seem rather centrist, and Clinton Democrats would be center-right on many issues. Bernie Sanders implied this much the other day, bringing up the top marginal tax rate of 90 percent under the “radical socialist Dwight D. Eisenhower.” Looking back over the past century, it is quite clear that the Democrats have not suddenly become radically left, but that American politics as a whole have gone further to the right.”

These domestic policies favoring the 1%, pursued by both parties, are changing our country in a rather dramatic fashion, creating sub-classes of peoples with diminished rights. Here’s Bill Fletcher commenting on how neoliberalism creates winners and losers, with the losers increasingly viewed as superfluous.

“Neo-liberal capitalism, therefore, does not pretend to offer an idealistic vision of the future. There is no further sense of satisfying a collective future in which we are all in this together. Neither is there a sense that one can expect, even as a citizen, that one’s living standard will continue to exist, let alone improve. The elite, the common citizen, and the sub-citizen have all been in the process of being trained to measure and modify their expectations of life.”

This milieu is what I’ve taken to referring to as neofeudalism. Other writers have noticed it as well.

America has fallen into neo-feudalism: A wealthy capital-owning class exists behind a servile class with no assets, and only a life of drudgery ahead of them. The master-servant relationship will only further degrade social trust and civic values. Americans can’t see themselves as equals in the political sphere when large portions are consigned to wait upon the whims of new aristocracy. Conservative politics relies on the middle class making a devil’s bargain, believing they have more in common with the rich than the poor. It won’t be long before that facade crumbles.”

Americans are starting to realize what a savage and unequal world the neoliberals have created. However, they’re also coming to realize that the chains that have been surreptitiously emplaced have precluded the possibility of a different world, an alternative to neoliberal capitalism, where people can be free to organize to make their lives better.

This threat of a good example must be destroyed at all costs.

Faced with the threat of a political uprising the ruling class would prefer that the unemployed dutifully remain on the job treadmill, keep their nose to the grindstone, and stay with the program. Because in doing so workers offer tacit acquiescence to existing political, economic, and social arrangements. To do otherwise might give the unwashed masses a chance to organize and consider alternatives. For the moneyed gentry of the 0.1% that could be truly dangerous.

I don’t like where this is headed. John F. Kennedy famously stated that: “Those who make peaceful revolution impossible will make violent revolution inevitable.”

 

 

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What Are They Good For?

What’s the point of having two political parties that both represent corporations and the wealthy? 

My first post at Camelotkidd was entitled TINA,“There is no Alternative,” proclaimed by Margaret Thatcher about the superiority of neoliberal capitalism. This phrase, uttered with such smug assurance always pissed me off. I wasn’t very old or sophisticated but I knew it was bullshit. I mean fuck! There are lots of alternatives. We’re talking about economics, which concerns people, who have been known to do things differently.

In the 1980’s Ronald Reagan introduced neoliberalism to the world. This economic system of unfettered markets was supposed to lead to freedom, prosperity and economic growth through deregulation, privatization and globalization. Since then there’s been a parallel media campaign informing us just how wonderful our market based life is, while at the same time insisting at the top of their lungs that there is no alternative to neoliberalism, and no alternative is needed.

Looking around at our world it’s clear that this promise has only been achieved for the very wealthy 1% and the corporations they control.

What Reagan and Thatcher did that was worse than their policies, which were horrible, was to move the opposition party rightward as well. Look at the Labor party in Britain and the Democratic party here. They become neoliberal and moved rightward, aping their conservative rivals. Even conservative pundit George Will grasped this essential shift in party dynamics saying–“This represents a transfer of wealth from labor to capital unprecedented in Americans history…If a Democrat can’t make something of that, what are Democrats for.”

The reality of two corporate parties means that vast segments of the American population have become effectively disenfranchised, with little or no say in critical economic and foreign policies. We’ve now had 30 years of these policies carried out by Republicans and Democrats, with the practical effect of the US becoming an oligarchy, with a fig leaf of democracy. And, even this small bit of democracy is under assault.

“I’m talking about the myriad ways that the super-rich control the political process — and in controlling the political process, both make themselves richer and give themselves even more control over the political process. Purging voter rolls. Cutting polling place hours. Cutting back on early voting — especially in poor districts. Voter ID laws. Roadblocks to voter registration — noticeably aimed at people likely to vote progressive. Questionable-at-best voter fraud detection software, which — by some wild coincidence — tends to flag names that are common among minorities. Eliminating Election Day registration. Restricting voter registration drives. Gerrymandering — creating voting districts with the purpose of skewing elections in your favor.”

About this disenfranchisement. The salient point in all this is the fact that the so-called party of the people–the Democrats–are seemingly cool with the loss of their traditional supporters. I wonder why that is?  Maybe, it’s because the Democrats increasingly are funded by the same corporate and financial interests as are Republicans. The policies that both parties have recently embraced give a clue to their priorities. Here’s an example: Since the Wall-Street crash both parties have embraced fiscal conservatism because that’s what the rich people and corporations who fund their campaigns want.

Unfortunately, for us, here’s what you get with fiscal conservatism.

“The reality of fiscal conservatism in the United States is not cautious, evidence-based attention to which government programs do and don’t work. If that were ever true in some misty nostalgic past, it hasn’t been true for a long, long time. The reality of fiscal conservatism in the United States means slashing government programs, even when they’ve been shown to work. The reality means decimating government regulations, even when they’ve been shown to improve people’s lives. The reality means cutting the safety net to ribbons, and letting big businesses do pretty much whatever they want.” 

Here’s one of my favorite writers–Ian Welsh–making some basic organizational points about opposition parties. Ian says that to win from the left don’t offer up Republican-lite. Offer a real alternative to neo-liberalism.

“Therefore your job, as a left-winger, right-winger, or whatever, is to keep control of that party. This takes precedence over winning the most immediate election.  Winning by becoming a lite version of the other ideology does not serve you. Having the second (or every) party be neo-liberal is not in the interests of anyone but neo-liberals.”

Going forward, progressives either need to take over the Democratic party, or kill it and form a political party that offers an alternative to neoliberalism.

Update: Bernie Sanders is running for President as an avowed socialist, but the language he’s using is how Democrats used to speak.

“Sanders’ language is important here. You’ll note that he does not actually use the term “redistribution” of wealth. That’s because the term “redistribution” implies that the status quo, in which wealth is stacked at the top, is the natural order of things. The status quo is simply one of various possible distributions of wealth as determined by the current set of laws governing the country. Prior to Reagan, there was a different set of policies that led to a different distribution of wealth — strong labor rights, higher, more prohibitive marginal tax rates on the very wealthy, and so forth. As Sanders says, it’s not about “redistributing” wealth — it’s about recalibrating the distribution to one that was better. His challenge in appealing to voters will be decades of free-market agitprop that’s conditioned lower- and middle-income people to believe that policy directly challenging the super-wealthy’s right to be super-wealthy would mark the end of human civilization, and the death of God.”

 

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