The Recession Will Be Unevenly Distributed

Posted on January 17, 2019 by Reid Mukai

By Charles Hugh Smith

Those households, enterprises and organizations that have no debt, a very low cost basis and a highly flexible, adaptable structure will survive and even prosper.

The coming recession will be unevenly distributed, meaning that it will devastate many while leaving others relatively untouched. A few will actually do better in the recession than they did in the so-called “recovery.”

I realize many of the concepts floated here are cryptic and need a fuller explanation: the impact of owning differing kinds of capital, fragmentation, asymmetry, opacity, etc. ( 2019: Fragmented, Unevenly Distributed, Asymmetric, Opaque).

These dynamics guarantee a highly uneven distribution of recessionary consequences and whatever rewards are generated will be reaped by a few.

One aspect of the uneven distribution is that sectors that were relatively protected in recent recessions will finally feel the impact of this one. Large swaths of the tech sector (which is composed of dozens of different industries and services) that were devastated in the dot-com recession of 2000-02 came through the 2008-09 recession relatively unscathed.

This time it will be different. The build-out of mobile telephony merging with the web has been completed, social media has reached the stagnation phase of the S-Curve and many technologies that are widely promoted as around the corner are far from profitability.

Then there’s slumping global demand for mobile phones and other consumer items that require silicon (processors) and other tech components: autos, to name just one major end-user of electronics.

The net result will be mass layoffs globally across much of the tech sector.Research is nice but it doesn’t pay the bills today or quiet the restive shareholders as profits tank.

The public sector is also ripe for uneven distribution of recessionary impacts.Local government and its agencies in boomtowns such as the SF Bay Area, Seattle, Los Angeles, NYC, etc. have feasted on soaring tax revenues and multi-billion dollar municipal bonds.

The Powers That Be in these boomtowns are confident that the good times will never end, and so the modest rainy-day funds they’ve set aside are widely viewed as immense bulwarks against recession when in reality they are mere sand castles that will melt away in the first wave.

A $1 billion reserve looks impressive in good times but not when annual deficits soar to $10 billion. Local governments depend on various revenue streams, and most rely on a mix of property, sales and income taxes, both wages (earned) and capital gains (unearned). All of these will be negatively impacted in the next recession.

Local governments are especially prone to The Ratchet Effect, the dynamic in which expenses move higher as revenues climb but the organization is incapable of shrinking, i.e. it only knows how to expand. This defines government as an organizational type.

Inefficiencies (including low-level corruption and fraud) pile up and are offset with higher revenues. When revenue crashes, the system is incapable of eliminating the inefficiencies or reducing benefits and headcount.

I call the endgame of The Ratchet Effect the Rising Wedge Model of Breakdown:

The Ratchet Effect is visible in organizations of all scales, from households to sprawling bureaucracies. The core of the Ratchet Effect is the ease with which the cost basis of an organization rises and the extreme resistance to any reduction in funding.

The psychology of this resistance is easy to understand: everyone hired in the expansion will fight to keep their job, regardless of the needs of the organization or the larger society. Every individual, department and division will fight with the fierceness of a cornered animal to retain their share of the budget, for their self-interest trumps the interests of the organization or society.

Since each “ratchet” will fight with desperate energy to resist being cut while those attempting to do the cutting are simply following directives, the group that has pulled out all the stops to resist cuts will typically win bureaucratic battles.

Broad-based cuts trigger Internecine Warfare Between Protected Fiefdoms as entrenched vested interests battle to shift the cuts to some politically less favored fiefdom. Bureaucracies facing cuts quickly shift resources to protecting their budget, leaving their mission on auto-control. (The Lifecycle of Bureaucracy December 2, 2010)

These dynamics create a rising wedge in which “minimum” costs continue to rise over time even if modest cuts are imposed from time to time. The eventual consequence is a cost basis that is so high that even a modest reduction collapses the organization.

In other words, incremental reductions and reforms have zero impact on the endgame. The organization has become so brittle that any structural reform triggers a breakdown.

Those households, enterprises and organizations that have no debt, a very low cost basis and a highly flexible, adaptable structure will survive and even prosper. Those with high debt loads, high fixed expenses and inflexible responses will find incremental reductions and reforms will have little impact on the endgame of breakdown and collapse.

This is one of the core topics of my latest book, Pathfinding our Destiny: Preventing the Final Fall of Our Democratic Republic.

Here’s a household example of the type of organization that won’t just survive but thrive in the recession: a household with $100,000 in revenues from multiple income sources and fixed expenses of $35,000, no debt and a management team (the spouses/adults) that’s willing to implement radical changes in lifestyle, expenses and work at the first disruption of revenues. The household that doesn’t just survive but thrives sees crisis / disruption as an opportunity, not a disaster to be mitigated with denial and wishful thinking.

Retconning History

Posted on January 11, 2019 by Reid Mukai

By CH

Source: The Hipcrime Vocab

“He who controls the past, controls the future; and he who controls the present, controls the past.”–George Orwell

“The mistake of judging the men of other periods by the morality of our own day has its parallel in the mistake of supposing that every wheel and bolt in the modern social machine had its counterpart in more rudimentary societies…”–H.S. Maine

“The past is a foreign country; they do things differently there.” –L.P. Hartley

I’ve often referred to the “Flintstonization of history”—a concept I borrowed from the book Sex at Dawn. It’s the tendency to project our present-day circumstances onto the past, assuming that people basically thought and acted much as we do. But when we do that, we bring our “modern” sensibilities and worldview along with us. And those have been decisively shaped by the time and culture in which we live.

Today I’d like to introduce a related concept–the retconning of history.

Looking back, that’s been the theme of a lot of my writing over the past year. I’ve looked at a lot of history which challenges and overturns the conventional narrative that our present-day circumstances and social organization are basically the same as past societies, except with better technology and a few more creature comforts (i.e. the past, but with cell phones). Or that they are the way things have always been, and that there are no alternatives.

Now, most of you probably know what retconning is. It is short for the phrase “retroactive continuity”. In order to make a narrative coherent, the authors “rewrite” (or simply ignore) what has occurred in previous episodes or iterations of a long-running franchise in order to maintain continuity with the ongoing “new” narrative arc and characters. The phrase originated with comic books, and is typically used in reference to films, television shows, books, video games, etc.

From there, the word has passed into common parlance. Normally, retcon is still used in the context of a work of fiction. However, I’ve seen the word spread beyond just talking about movies and TV shows to the world in general. When people say retcon now, they are usually referring to an attempt to “rewrite” past events by deliberately distorting them or altering the record after the fact. That is, “[people] tell themselves a different story about what happened in prior events in order to maintain consistency with their current circumstances.” That story may include a blatant distortion of facts and a general disregard for reality. Much of this is derived from our current political situation. A politician may suddenly reverse their position, and then declare that what came before didn’t happen (“fake news”), or simply ignore it altogether if it doesn’t fit with the narrative “spin” of the political parties.

At it’s heart, it is an attempt to “erase” or “rewrite” the past for the sake of present circumstances. As one of it’s earliest descriptions had it, “retroactive continuity ultimately means that history flows fundamentally from the future into the past.”

What’s any of this got to do with history? It strikes me that much of what we learn about history are attempts to “retcon” the past.

What do I mean by this? It seems that history often adopts a “modern” point of view to explain past events. In this narrative, we were always heading to exactly where we are: globalized free-market corporate monopoly capitalism.This is done to depict our present circumstances not as deliberately engineered, or contingent on any historical circumstances, or political choices, but rather as something “natural” and just an expression of unchanging human nature. With this retconning, we are unable to think of different ways of organizing things, because those ways—even in the very recent past—have been retconned out of history. Even things in recent living memory—such as not going into debt for an education, or being able to afford a single family house on 25 percent of your income—are retconned to make it so that they never happened.

Here are just a few of the major retcons I have discovered over the past year or so:

1. Economists tend to depict all of human history as heading towards “free and open” markets, if only government would only just “get out of the way” and drop all restrictions and regulations on merchant princes and wealthy oligarchs. That is, globalized corporate free trade is “natural” (as is currency), and collective governance is “artificial” and unnecessary. Our “natural instinct” is to “truck, barter and exchange” declared Adam Smith. John Locke argued that the reason governments came to exist was to protect and secure private property, and that they should do little else besides this.

Of course, all of this is false. For example, an attempt at retconning history was engaged in by economists Santhi Hejeebu and Deirdre McCloskey (of ‘bourgois virtues’fame) attempting to refute some of Karl Polanyi’s book The Great Transformation. As political economist Mark Blyth countered, citing the works of Polanyi and Albert Hirschmann:

“While gain-seeking has indeed existed throughout history…the historical oddity was that gain-seeking became equated with market transactions only relatively recently. This was a qualitative and not a quantitative change; otherwise Incas, Mayans, Romans, and contemporary Britons were/are all living in societies that were more or less similar in their economic structure, despite the differences in, for example, the presence of slaves.”

“Painting the history of all hitherto existing societies as the history of capitalism in vitro probably obscures more economic history than it illuminates…capitalism did not simply evolve, it was argued for. It was propagandized by Scottish enlightenment intellectuals, English liberals, and French physiocrats long “before its triumph”. And it was as much a project of governance; limiting the state; constructing the commodified individual; building a singular notion of economically based self-interest, as much as it was one of creating wealth…”
“Capitalism was created, it did not just ‘happen’, and labeling all hitherto existing societies as ‘almost capitalism’ hardly erases the distinctions between historical periods and economic systems. The fact the ‘we’ today accept Smith far more readily than ‘we’ accept Polanyi speaks directly to the power of ideas rather than the discovery of facts…”

The great transformation in understanding Polanyi: Reply to Hejeebu and Mccloskey(Critical Review)

As Polanyi himself summed it up: “Laissez-faire was planned, planning was not”. From The Great Transformation:

Indeed, on the evidence available it would be rash to assert that local markets ever developed from individual acts of barter.

Obscure as the beginnings of local markets are, this much can be asserted: that from the start this institution was surrounded by a number of safeguards designed to protect the prevailing economic organization of society from interference on the part of market practices. The peace of the market was secured at the price of rituals and ceremonies which restricted its scope while ensuring its ability to function within the given narrow limits. The most significant result of markets—the birth of towns and urban civilization—was, in effect, the outcome of a paradoxical development. Towns, insofar as they sprang from markets, were not only the protectors of those markets, but also the means of preventing them from expanding into the countryside and thus encroaching on the prevailing economic organization of society…
Such a permanent severance of local trade and long-distance trade within the organization of the town must come as another shock to the evolutionist, with whom things always seem so easily to grow into one another. And yet this peculiar fact forms the key to the social history of urban life in Western Europe…Internal trade in Western Europe was actually created by the intervention of the state.

Right up to the time of the Commercial Revolution what may appear to us as national trade was not national, but municipal…The trade map of Europe in this period should rightly show only towns, and leave blank the countryside—it might as well have not existed as far as organized trade was concerned. So-called nations were merely political units, and very loose ones at that, consisting economically of innumerable smaller and bigger self sufficing households and insignificant local markets in the villages. Trade was limited to organized townships which carried it on either locally, as neighborhood trade, or as long-distance trade—the two were strictly separated, and neither was allowed to infiltrate into the countryside indiscriminately…neither long-distance trade nor local trade was the parent of the internal trade of modern times—thus apparently leaving no alternative but to turn for an explanation to the deus ex machina of state intervention…

This retconning has been particularly egregious by the debunked “Austrian economic school” which was expressly created to overturn history and rewrite it for the benefit of capitalists and the wealthy. Michael Hudson, an economist who probably knows more about ancient economic organization than anyone since Polanyi, writes:

…Karl Polanyi[‘s] doctrine was designed to rescue economics from [the Austrian] school, which makes up a fake history of how economics and civilization originated.

One of the first Austrian’s [sic] was Carl Menger in the 1870s. His “individualistic” theory about the origins of money – without any role played by temples, palaces or other public institutions – still governs Austrian economics. Just as Margaret Thatcher said, “There’s no such thing as society,” the Austrians developed a picture of the economy without any positive role for government. It was as if money were created by producers and merchants bartering their output. This is a travesty of history.

All ancient money was issued by temples or public mints so as to guarantee standards of purity and weight. You can read Biblical and Babylonian denunciation of merchants using false weights and measures so see why money had to be public. The major trading areas were agora spaces in front of temples, which kept the official weights and measures. And much exchange was between the community’s families and the public institutions.

Most important, money was brought into being not for trade (which was conducted mainly on credit), but for paying debts. And most debts were owed to the temples and palaces for pubic services or tribute. But to the Austrians, the idea was that anything the government does to protect labor, consumers and society from rentiers and grabbers is deadweight overhead.

Above all, they opposed governments creating their own money, e.g. as the United States did with its greenbacks in the Civil War. They wanted to privatize money creation in the hands of commercial banks, so that they could receive interest on their privilege of credit creation and also to determine the allocation of resources.

Rewriting Economic Thought (Michael Hudson)

So we see that in this case that there is a very specific political agenda behind the retconning of history. It’s pressed in economic textbooks and expressly designed to promote a libertarian point of view. Much of retconning history does serve a political agenda that benefits a select group of people.

Trying to analyze all premodern economies as though they were just proto-capitalists lead to all sorts of errors, as Branko Milanovich points out in a recent post:

“The equilibrium (normal) price in a feudal economy, or in a guild system where capital is not allowed to move between the branches will be different from equilibrium prices in a capitalist economy with the free movement of capital. To many economists this is still not obvious. They use today’s capitalist categories for the Roman Empire where wage labor was (to quote Moses Finley) ‘spasmodic, casual and marginal’.”

Marx for me (and hopefully for others too) (globalinequality)

2. The individual has always been the basic unit of social organization. People have always thought of themselves primarily as citizens of territorial nation-states (British, German, French, Canadian, etc.) with well-defined borders. The neolocal monogamous nuclear family is the only natural and logical form of human social organization.

None of these statements are true, of course. Such arrangements are very contingent upon time and place and culture, and often very recent. For most of human history, the nation-state did not exist. There is nothing “natural” about it–it was created from above by oligarchic elites, just like the One Big Market. They are artificial creations.

And while families are, indeed, “natural,” the form they take varies widely. Most families were extended, and consisted of many generations living either on the same land or under the same roof, together with agnatic relations. Who was or was not considered a part of the family had to do with kinship structures, typically encoded into the language and culture.

Extended kinship networks were the primordial form of human social organization (as Lewis Henry Moran discovered). Religion, too, played a significant role, especially ancestor worship, collective rituals, and food-sharing meals and feasts (even bonobos do it).

This was the conclusion made by Henry Sumner Maine by studying ancient legal structures and comparing to them to surviving village communities in India, Java, North America, and elsewhere. He writes, “We have the strongest reason for thinking that property once belonged not to individuals nor even to isolated families, but to larger societies composed on the patriarchal model.” Concerning private property, he concludes,

“…[P]rivate property, in the shape in which we know it, was chiefly formed by the gradual disentanglement of the separate rights of individuals from the blended rights of a community. Our studies…seemed to show us the Family expanding into the Agnatic group of kinsmen, then the Agnatic group dissolving into separate households; lastly the household supplanted by the individual; and it is now suggested that each step in the change corresponds to an analogous alteration in the nature of Ownership.”

“…if it be true that far the most important passage in the history of Private Property is its gradual elimination from the co-ownership of kinsmen, then the great point of inquiry…what were the motives which originally prompted men to hold together in the family union? To such a question, Jurisprudence, unassisted by other sciences, is not competent to give a reply. The fact can only be noted.” (p. 159)

This is why Marxists argued that “primitive communism” was the original form of property ownership, i.e. socialism. Historically, this is correct. The problem was that this was predicated upon extended kinship networks and not large, industrial, nation states, composed of strangers. That is, primitive communism does not scale, which is why market economies came to supplant them over time.

Regarding the “lone individual” posited by Classical Liberals as the primordial atomic unit of society, this, too, is ahistorical. Like the primitive barter economy, anthropology has failed to turn it up anywhere it has looked for it:

It is here that archaic law renders us one of the greatest of its services, and fills up a gap which otherwise could have only been bridged by conjecture. It is full, in all its provinces, of the clearest indications that society in primitive times was not what it is assumed to be at present, a collection of *individuals*. In fact, and in the view of the men who composed it, it was an *aggregation of families*. The contrast may be most forcibly expressed by saying that the *unit* of an ancient society was the Family, or a modern society the individual. We must be prepared to find in ancient law all the consequences of this difference.

[Archaic Law] is so framed as to be adjusted to a system of small independent corporations. It is therefore scanty, because it is supplemented by the despotic commands of the heads of households. It is ceremonious, because the transactions to which it pays regard resemble international concerns much more than the quick play of intercourse between individuals.

Above all…it takes a view of *life* wholly unlike any which appears in developed jurisprudence. Corporations never die, and accordingly primitive law considers the entities with which it deals, i.e. the patriarchal or family groups, as perpetual and inditinguishable…
Ancient Law pp. 134-135

Surveying continental Europe and much of the colonial world, French scholar Emile de Lavaleye came to the same conclusion:

Originally the clan, or village, is the collective body owning the soil ; later on, it is the family, which has all the characteristics of a perpetual corporation. The father of the family is merely the administrator of the patrimony: when he dies, he is replaced by another administrator. There is no place for the testament, nor even for individual succession…Such was also the law everywhere where these communities have existed; and, probably, every nation has passed through the system.

The point of all this, of course, is not to advocate a rewind to the past. Rather, it is to show us that social forms change over time; and what may adaptive in one context (say, Fordism), will not work in another (say, an information economy). Lavaleye points this out himself:

“…the object of this book is not to advocate a return to the primitive agrarian community; but to establish historically the natural right of property as proclaimed by philosophers, as well as to show that ownership has assumed very various forms, and is consequently susceptible of progressive reform.”

3. Everyone before the Industrial Revolution was miserable, sick, and hungry all the time, irrespective of time and place. Life was, as Hobbes argued, “nasty, brutish and short” throughout prehistory before the last hundred years or so. We’ve doubled the human lifespan—a thirty year-old man was considered “old” just a few generations ago.

I’ve written so much disproving this idea that it’s not worth reiterating here. But here is yet another item that shows us that life in the past was not as horrible as it is commonly depicted by the evangelists of the Progress Gospel:

Medieval peasant food was frigging delicious (BoingBoing)

This Reddit Ask Historians question: Was there ever a civilization that had proper nutrition prior to modern society? begs the question. Its very formulation assumes that everyone was malnourished—a product of such retconning. Here are some good answers:

According to my history professor at Dalhousie University, Cynthia Neville (one of the top scholars in early medieval Scottish history), the Scots in medieval times had an incredibly healthy diet compared to many other parts of Europe at the time.

Wheat doesn’t grow well so far north, but hardier grains like oats and barley do quite well, and provide much better staple foodstock, along with many native vegetable varieties. Also, because cows weren’t as viable (except for the wealthiest lowland nobles), they lived on sheep’s milk and goat milk, which are much easier on the human digestive system. Much of their proteins came from seafood, which, as we know today, are loaded with omega fatty acids and essential vitamins.

There was a bit more to it, but that’s about all I can recall off the top of my head from her classes. This is one of the reasons why the Scots had a reputation for being taller and stronger, because their diets and hardy lifestyles kept them fit and healthy.

And:

When the Romans invaded Gaul, they noticed the Gauls were more than a foot taller, on average, than the Romans. This was due to better nutrition. Many prehistoric people’s had great nutrition. They were defeated by “civilized” people’s who had the advantages of greater numbers and organization. The same was true of the Indians of Massachusetts, when the Pilgrims arrived.

Not all prehistoric people had good nutrition, and not so people’s proliferate societies had bad nutrition. The Norse (Vikings) were dairy farmers and fishermen, and had excellent nutrition, like the Scotch, in medieval times.

4. People need “jobs” in order to feel valuable, or else they will go crazy. That is, we need to find a willing buyer for our labor, or we will feel like a useless burden on society. Furthermore, working forty hours a week is something we’ve just always done since forever. We would all be bored otherwise.

Of course, “jobs” are very recent invention. Most people in the past did not have formalized “jobs”—wage-labor was actually seen as a kind of slavery for much of ancient history. Yet today we’re told that jobs are an absolute necessity to feel “meaningful” and to have any kind of social outlet in today’s society.

Moreover, even when wages were paid, it was for a specific task and a specific duration (say, bringing in the harvest), not selling precisely 40 hours a week of your time to the highest bidder. Modern jobs are more of a babysitting operation than anything else. Of course people in earlier times had occupations and professions—farmers, craftsmen, warriors, artisans, clerks, priests, and so on. One of the biggest challenges capitalism faced was overcoming the previous work/leisure patterns and “disciplining” workers. Ryan Cooper sums up the very novelty of these ‘eternal’ notions:

The idea that work is a bedrock of society, that absolutely everyone who is not too old, too young, or disabled must have a job, was not handed down on tablets from Mount Sinai. It is the result of a historical development, one which may not continue forever. On the contrary, based on current trends, it is already breaking down.

The history of nearly universal labor participation is only about a century and a half old. Back in the early days of capitalism, demand for labor was so strong that all the ancient arrangements of society and family were shredded to accommodate it. Marx’s Capital famously described how women and very young children were press-ganged into the textile mills and coal mines, how the nighttime was colonized for additional shifts, and how capitalists fought to extend the working day to the very limits of human endurance (and often beyond).

The resulting misery, abuse, and wretchedness were so staggering, and the resulting class conflicts so intense, that various hard-won reforms were instituted: the eight-hour day, the weekend, the abolition of child labor, and so forth.

But this process of drawing more people into the labor force peaked in the late 1990s, when women finally finished joining the labor force (after having been forced out to make room for returning veterans after World War II). The valorization of work as the source of all that is good in life is to a great degree the result of the need to legitimate capital’s voracious demand for labor.

America is running out of jobs. It’s time for a universal basic income (The Week)

And here’s investigative journalist Yasha Levine recounting part of capitalism that have been retconned out of existence, citing the underappreciated work of economist Michael Perelman:

One thing that the historical record makes obviously clear is that Adam Smith and his laissez-faire buddies were a bunch of closet-case statists, who needed brutal government policies to whip the English peasantry into a good capitalistic workforce willing to accept wage slavery.

Francis Hutcheson, from whom Adam Smith learned all about the virtue of natural liberty, wrote: ”it is the one great design of civil laws to strengthen by political sanctions the several laws of nature. … The populace needs to be taught, and engaged by laws, into the best methods of managing their own affairs and exercising mechanic art.”

Yep, despite what you might have learned, the transition to a capitalistic society did not happen naturally or smoothly. See, English peasants didn’t want to give up their rural communal lifestyle, leave their land and go work for below-subsistence wages in shitty, dangerous factories being set up by a new, rich class of landowning capitalists. And for good reason, too. Using Adam Smith’s own estimates of factory wages being paid at the time in Scotland, a factory-peasant would have to toil for more than three days to buy a pair of commercially produced shoes. Or they could make their own traditional brogues using their own leather in a matter of hours, and spend the rest of the time getting wasted on ale. It’s really not much of a choice, is it?

But in order for capitalism to work, capitalists needed a pool of cheap, surplus labor. So what to do? Call in the National Guard!

Faced with a peasantry that didn’t feel like playing the role of slave, philosophers, economists, politicians, moralists and leading business figures began advocating for government action. Over time, they enacted a series of laws and measures designed to push peasants out of the old and into the new by destroying their traditional means of self-support.

“The brutal acts associated with the process of stripping the majority of the people of the means of producing for themselves might seem far removed from the laissez-faire reputation of classical political economy,” writes Perelman. “In reality, the dispossession of the majority of small-scale producers and the construction of laissez-faire are closely connected, so much so that Marx, or at least his translators, labeled this expropriation of the masses as “primitive accumulation.”

Yasha Levine: Recovered Economic History – “Everyone But an Idiot Knows That The Lower Classes Must Be Kept Poor, or They Will Never Be Industrious” (Naked Capitalism)

Indeed, average non-agricultural workers had much more autonomy and leisure time in the past, according to Perelman:

A medieval peasant had plenty of things to worry about, but the year-round control of daily life was not one of them. Perelman points out that in pre-capitalist societies, people toiled relatively few hours over the course of a year compared to what Americans work now. They labored like dogs during the harvest, but there was ample free time during the off-seasons. Holidays were abundant – as many as 200 per year. It was Karl Marx, in his Theory of Alienation, who saw that modern industrial production under capitalist conditions would rob workers of control of their lives as they lost control of their work. Unlike the blacksmith or the shoemaker who owned his shop, decided on his own working conditions, shaped his product, and had a say in how his goods were bartered or sold, the modern worker would have little autonomy. His relationships with the people at work would become impersonal and hollow.

Clearly, the technological wonders of our capitalist system have not released human beings from the burden of work. They have brought us more work. They have not brought most of us more freedom, but less.

Fifty Shades of Capitalism: Pain and Bondage in the American Workplace (Naked Capitalism)

Yet now we’re told that we need “jobs” to have any sort of meaning? Really?? WTF??? The vast majority of human existence has occurred outside of formalized wage work, as anthropologist James Suzman points out. Yet society will fall apart if we don’t submit ourselves to worker ‘discipline’ and scientific management? I don’t buy it. Whom does this narrative benefit, anyway?

See also this post from Reddit: What did an average day look like in medieval Europe?And this: Myths about the Medieval Times? Lots of good debunking in that last one.

In addition, laborers who recalled the previous autonomous lifeways–as late as the eighteenth century–were much more resistant to the constraints and insults of corporate capitalism. Now that the past has been retconned, we no longer even remember those past ways of being. Why is there no longer any resistance to the crushing or workers? Why do we not resist, even celebrate, the fortunes of today’s robber barons, unlike our forefathers? American resistance to our ruling elites has vanished. A lot of it has to do with the retconning of history, as this review of the Steve Fraser’s excellent book The Age of Acquiescence makes clear:

The fight against slavery had loosened the tongues of capitalism’s critics, forging a radical critique of the market’s capacity for barbarism. With bonded labor now illegal, the target pivoted to factory “wage slavery.” This comparison sounds strange to contemporary ears, but as Fraser reminds us, for European peasants and artisans, as well as American homesteaders, the idea of selling one’s labor for money was profoundly alien.

This is key to Fraser’s thesis. What fueled the resistance to the first Gilded Age, he argues, was the fact that many Americans had a recent memory of a different kind of economic system, whether in America or back in Europe. Many at the forefront of the resistance were actively fighting to protect a way of life, whether it was the family farm that was being lost to predatory creditors or small-scale artisanal businesses being wiped out by industrial capitalism. Having known something different from their grim present, they were capable of imagining — and fighting for — a radically better future.

It is this imaginative capacity that is missing from our second Gilded Age, a theme to which Fraser returns again and again in the latter half of the book. The latest inequality chasm has opened up at a time when there is no popular memory — in the United States, at least — of another kind of economic system. Whereas the activists and agitators of the first Gilded Age straddled two worlds, we find ourselves fully within capitalism’s matrix. So while we can demand slight improvements to our current conditions, we have a great deal of trouble believing in something else entirely.

A similar point is made in this review of the book in the London Review of Books:

Resistance to capitalism, it appeared, could look back as well as forwards; it was rooted not only in utopian visions of the future but also in concrete experience of the present and past, in older ways of being in the world, depending on family, craft, community, faith – all of which were threatened with dissolution (as Marx and Engels said) in ‘the icy waters of egotistical calculation’. Radical critiques of capitalism might well arise from conservative commitment to pre-capitalist ways of life, or memories of that life.

This wasn’t only an American pattern. E.P. Thompson, in The Making of the English Working Class (1963), rescued the Luddites and other artisans from ‘the enormous condescension of posterity’ by showing that their apparently reactionary attachments to custom and tradition created the leading edge of working-class consciousness. Soon American historians were making similar discoveries.
The Thompsonian history of the working class revealed a common pattern on both sides of the Atlantic: as workers became less grounded in traditional ways, their critique of capitalism tended to soften.

The Long Con (The London Review of Books)

5. New technology and innovation increases leisure time.The Industrial Revolution was accomplished purely by technological advances with no dislocation or bloodshed, and it made everyone better off with no government intervention whatsoever.

If there’s one consistent trend in technology, it’s this – new technology increases the amount of work! Greater leisure has only and ever been delivered due to worker insurrection and deliberate organization, and not by the “invisible hand” of the Market. Furthermore, entire generations were sacrificed and written out of the historical narrative to make the Industrial Revolution seem like a harmless win-win. As this commenter to Slashdot writes:

“Luddites weren’t just angry conservatives (literal, not political) trying to maintain some mythical “way of life”, it was a movement stated due to massive unemployment brought on by innovation in the textile industry. It became a generic insult because we’re so far removed from their (very real) suffering.”

“There was [sic] close to 80 years of unemployment following the industrial revolution that is seldom talked about (if you took history in high school or college you got maybe a paragraph at best). This is because text book historians like to keep an upbeat tone and because school boards are often staffed by economically conservative (political now) who don’t want anyone speaking ill of capitalism. Go find a book called “A People’s History of the United States” if you want a sense for how screwed up American history actually is.”

https://hardware.slashdot.org/story/19/01/04/180226/robots-are-taking-some-jobs-but-not-all-world-bank

Or, just read this post: The US Government Has Always Been a Tool of Greedy Corporations (Vice)

5. Ancient people were uniformly ruled over by evil despots (i.e. ‘Oriental Despotism’). The “West” was all about freedom, justice, and democracy compared to the yoke of despotism the rest of the world lived under in primitive places such as Asia, Africa and the Americas.

As we’ve seen, Classical civilization–from the ancient Greeks to the Romans–was the most slave-driven economy in history to that point (only to be surpassed in the ‘Western’ colonial Americas). While that slavery decayed due to the dissolution of the Roman Empire, subsequent serfdom could hardly be considered freedom. By contrast, not all “primitive” societies were anywhere near as despotic as Western Europe and Imperial China were. That was a retconning of history to depict Western European civilization as “enlightened” in opposition to the ignorant “heathens.” For example, here is an excerpt from the book The Story of Manual Labor:

At no time in the history of ancient Mexico do we find that heartless oppression of the poor by the rich, that lack of humanity toward the wage-worker, that blackens the annals of so many European peoples. Luxury existed in the court of the Montezumas, it is true, but to support that luxury the poorer classes were not plunged into poverty and degradation. They were a simple people, and their needs were small and easily satisfied. Living in a tropical climate, upon a soil that repaid a thousandfold the slightest effort of the farmer; surrounded by forests full of game and rivers teeming with edible fish, the Mexican lived a life of comfort that to the Saxon churl or French bourgeoise of the same day would have seemed idyllic.

The Story of Manual Labor (Archive.org)

There are countless other examples, from long car commutes, to 20+ years of formalized schooling and expensive post-graduate degrees required for a job (or any formalized education at all), but I think you get the point.

As Chris Hedges poignantly writes in his latest book, America: the Farewell Tour:

If we do not know our history and our culture, if we accept the history and culture manufactured for us by the elites, we will never free ourselves from the forces of oppression. The recovery of memory and culture in the 1960s by radical movements terrified the elites. It gave people an understanding of their own power and agency. It articulated and celebrated the struggles of working men and women and the oppressed rather than the mythical beneficence of the powerful. It exposed the exploitation and mendacity of the ruling class. And that is why corporatists spent billions to crush and marginalize these movements and their histories in schools, culture, the press, and in our systems of entertainment.

Not only does the people have no precise consciousness of its own historical identity,” Gramsci lamented under fascism, “it is not even conscious of the historical identity or the exact limits of its adversary.

If we do not know our history we have no point of comparison. We cannot name the forces that control us or see the long continuity of capitalist oppression and resistance… p. 17

Anyway, here’s to a happy (or at least, tolerable) 2019, and I hope you all stick around and continue reading and commenting. Thanks!

National Bankruptcy as a Board Game

Posted on January 10, 2019 by Reid Mukai

By Dmitry Orlov

Source: Club Orlov

Most people are familiar with the game Monopoly. Its goal is to teach capitalist kiddies a valuable lesson about capitalism; namely, that in running a business it isn’t useful to shoot for some happy modicum of accommodation with your competitors or to strive for a sustainable steady state. Instead, what you need to do to survive (never mind win) is to grow as quickly as possible and eat up your competitors alive, or you’ll get eaten up yourself. That’s not just a game; that’s exactly how capitalism actually works, and if that doesn’t work for you (it doesn’t for most people) then that’s exactly how capitalism doesn’t work.

And so the Waltons couldn’t just run Walmart as a mart; they had to make it into a global empire—just in order to survive. Now, most governments in the world realize that this sort of unbridled capitalism is harmful and seek to regulate it. For instance, Russia has a Federal Antimonopoly Service. The US Justice Department has an Antitrust Division, which is aptly named if its mission is to destroy Americans’ trust in their government’s ability to regulate business. It also has a website which currently says: “Due to the lapse in appropriations, Department of Justice websites will not be regularly updated.” Perhaps that’s all right for a country that seeks to monopolize everything—international finance and law, defense procurement and, of course, the dispensation of “freedom and democracy” and “universal values.”

Most people are also familiar with the concept of national debt. The federal debt of the US government currently equals… never mind; it’s going up much faster than you can write it down. If you want to watch it go up real time, you can look it up here. The exact number is useless: if you take a snapshot of it—say, $21,921,420,945,123.00—that will no longer be the payoff amount by the time you write out the check, and if you write out the check, no matter who you are, it will bounce. But it won’t even get that far: if you mail that check to the US Treasury Department, they wouldn’t be able to deposit it because “Due to the lapse in appropriations…” (You get the picture.)

The debt goes up all the time, and the rate at which it goes up is accelerating. The concept of acceleration may not be intuitive for some of you, so let me explain. Debt goes up with some speed. Acceleration is the amount by which that speed increases, measured in, for example, dollars per minute per minute. Calculating it is a fun little arithmetic exercise. During Barak Obama’s reign it went up by $8.6 trillion, starting from $11.6 trillion and gong up to $20.2 trillion. Trump plans to add $4.8 trillion during his first three years. (Relevant numbers can be looked up here).

Thus, Obama’s velocity was $8.6 trillion over 8 years—roughly $1 trillion per year or $2 million per minute while Trump’s velocity is roughly $1.6 trillion per year or a little over $3 million per minute. Therefore, the acceleration is only a few cents per minute per minute—but it sure adds up! Acceleration tends to sneak up on you. For instance, if you want to gain some intuitive appreciation for acceleration due to gravity (9.81m or 32 feet per second per second) then try jumping off a chair while keeping your knees straight. You can also ponder the fact that satellites that fall out of Earth’s orbit tend to burn up on reentry as they decelerate due to friction with the atmosphere.

Any sane, numerate person can tell you that increases in debt are fine provided your revenues are increasing significantly faster, but if that’s not the case then the eventual result is bankruptcy. And that is most definitely not the case. Hence the name of this board game is National Bankruptcy. But I am not sure what the objective of the game should be. Is it to go bankrupt as quickly and efficiently as possible, or is to go bankrupt as slowly and painfully as possible?

I am quite sure that players who aren’t on a path to national bankruptcy would prefer to keep it that way, and would furthermore prefer to be rid of all sovereign debt issued by whoever is going to go bankrupt before that happens. (Russia seems to have that problem solved already while China is far behind.) In any case, I am a very serious person who doesn’t like jokes and doesn’t have time to play games, board games included, so I’ll leave it to others to ponder such questions. Still, the board game metaphor seems useful for discussing this topic.

One problem with playing this game is the problem of scale. People have a problem appreciating such huge numbers. They are familiar with what a dollar is, but what’s a trillion? Here it is, represented as double-stacked pallets of $100 bills.

That seems a bit cumbersome for our board game. Reasonable values for the chips in our National Bankruptcy game would be $100 billion, $500 billion and $1 trillion. We could use a few $5 trillion and $10 trillion chips too, though not too many because I doubt that the game would go on long enough to make them useful.

I propose that for the sake of this game we introduce a handy new unit called a “piffle” which is equal to $100 billion. A trillion is 10 piffles, 10 trillion is 100 piffles. Then our chips can be 1, 5, 10, 50 and 100 piffles. Piffles allow us to express various huge quantities without going through any arithmetic contortions. US federal debt is currently 220 piffles. US trade deficit for 2018 was 6 piffles while the US defense budget was 7 piffles. For 2019 the federal budget deficit (covered by increased borrowing) is 10 piffles and rising while tax revenues are just 3 piffles and falling. The interest payment on federal debt is 3 piffles but with rising interest rates it’s going to 5 piffles within a few years.

Speaking of rising interest rates… just today Trump wished for 0% interest rates again, like Obama had while he was running up his 80 piffles’ worth of debt. But now it’s hovering around 3% and is unlikely to go down no matter what Trump wishes. Why? Well, here’s the reason. The US imports much more than it exports because it can’t afford to or lacks the ability to make all the stuff it needs; that’s why there are 6 piffles’ worth of trade deficit. When other nations sell to the US more than they buy, they end up holding lots of piffles, and since the US needs lots of piffles (remember, the budget deficit is 10 piffles) it makes plenty of sense to borrow that money right back. A little while back it was possible to borrow it back at 0% interest because the US was powerful enough to threaten those who refused to play this game with military annihilation (cue pictures of bombed-out Libya and Iraq). But times have changed, and unless the US bribes its debt-holders with 3% interest rate or better—no deal.

How have times changed? There are two effects worth mentioning. First, the military annihilation threat isn’t working any more. Yes, the US still spends a stunning, record-shattering sum of 7 piffles on defense, but none of that is working. Call it the free money effect. When people spend their own hard-earned money, they tend to be careful with it, but if it’s somebody else’s money that they got for free never intending to pay it back, then they tend to throw caution to the wind. And so US military spending has become less and less effective over time, in one of two ways: procurement costs have gone through the roof, and the resulting products have become useless.

In terms of procurement costs, the purchasing parity between the US and (just as an example) Russia seems to be at least ten to one: to get the same result, the US has to spend at least ten times more than Russia. And so although Russia spends well less than 1 piffle on defense, its military is far more effective. In terms of product uselessness, the Pentagon now resembles a woman who has a closet jam-packed with expensive designer labels but has absolutely nothing to wear because her entire wardrobe is no longer fashionable. There is the entire set of aircraft carriers none of which can operate close enough to enemy shores to be of any use at all because they can be readily sunk using hypersonic rockets launched from very far away. There are the stockpiles of Tomahawk cruise missiles which can’t make it past Soviet-era air defense systems (with a few electronics and software upgrades). There are the Patriot air defense systems which are useless even for stopping Soviet-era SCUD missiles, never mind anything more modern.

Add to this Russia’s (and soon China’s) new hypersonic weapons with conventional payloads and new air and space defense systems such as the S-400: these provide what’s known as “escalation dominance.” Suppose the US does something unspeakably nasty and Russia and/or China decide to teach it a lesson. They now have the ability to blow up any target within the US without getting anywhere near it and without placing any of their military assets at risk.

They could, for instance, take out the US electric grid in a way that will take many months to get it back on line. They can then reliably intercept anything that the US tries to retaliate with. Of course, the US can become suicidal—that’s always a risk—and launch a full-on nuclear first strike, then sit back and wait to be completely obliterated along with much of the rest of the planet. But that’s not a military strategy, that’s pure suicide, and the officers in charge of military strategy tend to be emotionally stable family men who look forward to playing with their grandchildren upon retirement.

So, why then should the US continue to spend 7 piffles on defense? The sad answer is that it will go bankrupt whether it zeroes out the defense budget or not. If the defense budget goes to 0, then there is still 3 piffles’ worth of budget deficit left, plus those 6 piffles of trade deficit aren’t going anywhere but up. But what about MAGA?—you might ask—What about firing up US manufacturing, bringing the jobs back and exporting our way out of this? After all, if we turn those 6 piffles of trade deficit into 6 piffles of trade surplus, suddenly it all works out and bankruptcy becomes avoidable.

No, sorry, that just not realistic. You see, in order to get an industrial economy going again the US needs several things. It needs cheap energy, cheap labor, low cost of doing business and readily available markets, both domestic and export. And the US doesn’t have any of these. In terms of energy—and oil is by far the most important form of energy—in 2019 the US will import exactly as much oil as it did in 1998—around 8 million barrels a day. Yes, the shale oil industry has sprung up in the meantime, and the US is currently producing 11.5 million barrels per day. But also in the meantime US oil consumption has gone up a lot—to 20 million barrels a day, which is a stunning 20% of the world’s consumption for 4.4% of the world’s population.

And so the oil deficit is still very much there. Plus the shale oil patch has never made any money but has accumulated over 2 piffles’ worth of debt and has spent over a piffle’s worth more than it made. With interest rates going up they are unlikely to be able to borrow enough to keep up the same hectic drilling rate, and with declines from existing wells at over half a million barrels per day per month it won’t take many months to whittle down that 11.5 million barrels per day, forcing the US to either boost imports or cut consumption.

But the oil price has gone down a lot lately, so there shouldn’t be a problem in any case, right? Again, sorry, no. Peak Oil for most countries has come and gone. There is now only a handful of countries left that are able to meaningfully boost oil production: Russia, Canada (mostly tar sands), Iran, Iraq, United Arab Emirates, Kuwait and Brazil. Russia has recently announced that it isn’t planning to boost production. Saudi Arabia is a huge oil producer but does not seem to have any spare capacity left. Canada’s tar sands patch is a money-losing environmental disaster. Iran and Iraq (call them Iranq, since they are both Shia Moslem, are politically aligned and neither loves America too much) aren’t exactly going to gallop to the rescue. That leaves UAE, Kuwait and Brazil, and if you add them all up together that’s nowhere near enough. So, get ready for oil price spikes, followed by a wave of demand destruction, followed by oil price collapses, followed by supply destruction—you know, the usual.

Moving on to labor. In order to stay competitive, the US will need to lower its median wage a lot. It has to be lower than what the Chinese and the Southeast Asians earn because the US needs to outcompete them to steal their export market share. Without various other major changes this will cause US workers to either rebel or starve to death in short order. The changes involve nationalizing medicine and education to drive down their costs by a factor of 1000 or so, converting to public transportation and pretty much banning the use of private cars to make transportation affordable, putting up high-rises right next to factories for affordable worker housing and so on. That’s a lot of piffles’ worth of effort!

The cost of doing business is a tough one too. The US spends way more on courts and lawyers, insurance and regulatory compliance than most other countries, and the regulatory maze that entrepreneurs have to run in order to run even a small and simple business is very costly and absolutely confounding. How does one take a machete to that whole ridiculous, corrupt scheme? I have no idea. It’s an imponderable. The Chinese would probably just call it a “cultural revolution,” round up all the lawyers and the bureaucrats, make them wear dunce caps and sandwich boards that say “I am what is wrong with this country” and march them in procession while pelting them with rocks and beating them with sticks. Something like that…

Finally, there is the question of export markets. What exactly is the US going to export more effectively than other countries are exporting already? China out-manufactures just about anybody on the planet and isn’t about to give up its spot. Russia exports grain and other foodstuffs (all non-GMO, unlike the US), nuclear and space technology, defense technology (that actually works) and much else. Pakistan and India, and various other countries, export textiles. The world is full up with product. It’s consumers to bankrupt that are in short supply. And if the US cuts its labor rates to make itself competitive, then its consumer base will shrink rather dramatically.

So it looks like bankruptcy is it, no use fighting it. But what should the US do in the meantime? I suggest that it should put up some really huge walls—just for the sake of leaving behind some spectacular ruins for future generations to marvel at. The one along the southern border seems to be going up already, but there should be at least two more. There needs to be a wall along the Mason-Dixon line, because given the heated state of US politics there needs to be a way to prevent people from trying to reenact the Civil War (a misnomer, that!) with actual real weapons and live ammo. And there also needs to be a wall along the northern border, to keep various groups of armed troglodytes from escaping to Canada and ransacking it (it’s the least we can do for our peaceful northern neighbors). How much will these three walls cost? Glad you asked! They will cost roughly 0.005 piffles apiece, 0.015 piffles total—a truly piffling amount. That’s my 0.000000002 piffle’s worth. But, you know, it’s the thought that counts.

Oh, and if you want to actually design this National Bankruptcy board game, please resist the temptation to contact me about it. Seriously, I don’t like games, board games especially. I am a very serious person who doesn’t have time for such piffles.

“The War on Terrorism” is “Fake”: On the Need for Mass Social Mobilizations and Transformative Changes

Posted on January 9, 2019 by Reid Mukai

By Mark Taliano

Source: GlobalResearch.ca

Myriad agencies, funded by Western governments, foundations, and NATO, continue to erect o barriers to freedoms of thought and expression in the West’s post-democratic, New Fascist, societies.

The totalitarianism implicit in these restrictions means that colonial media is monochromatic, tightly framed, and ubiquitous. There is no “free exchange” of ideas, a necessary foundation of democratic societies. Hence, messaging that promotes wars of aggression, and dysfunctional economic ideologies remains ascendant in the public sphere.

The public is led to believe that never-ending criminal wars and vast outflows of public monies to the military industrial complex are normal and necessary. Similarly, publicly bailed-out, predatory, diseconomies are presented as the only viable economic models. Socially-oriented, (democratic) political economies, we are told, “do not work”. The public remains unaware that Empire wages criminal economic and “kinetic”, terrorist-supporting warfare, against societies that seek to determine their own political economies. Socially-oriented political-economies in countries such as Libya, Iraq, Syria, Nicaragua, Venezuela and on and on, are constantly under attack, and not allowed to thrive. Empire targets these countries criminally, aggressively, and perpetually.

The covert barriers which create bounded, framed restrictions on freedoms of expression create a “chilling effect” that promotes self-censorship, and disappears evidence-based truths which would otherwise counter-balance narratives from media conglomerates, all of which are unduly impacted, and subservient to “establishment” pressures from Big Oil, Banking, Military Industrial Complex, Big Pharmaceutical, and other monopolies.

Thought leaders who step outside of the confines of Establishment narratives are targeted. The University of Sydney’s warrantless suspension of best-selling author and Senior lecturer, Prof. Tim Anderson[1], from his teaching duties, is a case in point. Not only does his suspension create a “chilling effect”, and a culture of academic self-censorship, but it also restricts the amount of evidence-based research that reaches the public arena.

Military/Intelligence fronts, such as the Integrity Initiative[2]– well-funded by state agencies and even NATO[3]– add to the oppression, not only by targeting individuals for smear campaigns, but also by guaranteeing a non-stop flow of war propaganda.

Time and again, policymakers use Private Intelligence Contractors (PICS) as sources of fake intelligence that they wrap around previously planned policies, to give an air of credibility to war propaganda. Have we forgotten already the lies used to justify the West’s supremely criminal destruction of Iraq? All of the post-9/11 wars (and beyond) were sold to gullible domestic populations by means of well-planned strategies of deception.

It is an unequal battle, but the broad-based public must first free itself from foundational war lies if we are to make transformative changes. Foremost amongst these lies is “The War On Terrorism”. The public needs to understand that this War on Terror myth is cover for criminal wars of conquest. Our governments and their agencies support the terrorists. Pretending that the West is fighting ISIS and other terrorists (i.e al Qaeda) prolongs the suffering of its victims, past, present, and future. It is not a war against ISIS. It never was. The West and its allies support all of the terrorists in Syria, (and beyond), including ISIS.

If the public can be disabused of the “War on Terrorism” myth, then it will be ready for mass social unrest and mobilizations for fundamental reforms. Incremental reforms only bolster Establishment positions by providing illusions of democratic policymaking.

For starters, Canada needs to leave NATO, cut its military budget, end its “neoliberal” diseconomy, instate a socially-oriented economy, and regain its sovereignty and democracy.

Given all of the structural barriers that we face, these goals may never be achieved, but we still “win” when we at least struggle for justice.

Note to readers: please click the share buttons. Forward this article to your email lists. Crosspost on your blog site, internet forums. etc.

Mark Taliano is a Research Associate of the Centre for Research on Globalization (CRG) and the author of Voices from Syria, Global Research Publishers, 2017.

Notes

[1] Prof. Tim Anderson, “STEPHEN GARTON’S OVERREACH: INTELLECTUAL FREEDOM AT THE UNIVERSITY OF SYDNEY.” Avant Garde, 12 December, 2018.( https://avantgarde2009.wordpress.com/2018/12/12/stephen-gartons-overreach-intellectual-freedom-at-the-university-of-sydney/?fbclid=IwAR1MpVAZX-F7LcuwbZvSzHAio1mN-L2BemweI7IVMuBrEGrjRjT-sRSRLpc) Accessed 19 December, 2018.

[2] Mohamed Elmaazi and Max Blumenthal, “Inside The Temple Of Covert Propaganda: The Integrity Initiative And The U.K’s Scandalous Information War.” Gray Zone,17 November, 2018. (https://grayzoneproject.com/2018/12/17/inside-the-temple-of-covert-propaganda-the-integrity-initiative-and-the-uks-scandalous-information-war/) Accessed 19 December, 2018.

[3] George Eliason, “A Crisis in Intelligence: Unthinkable Consequences of Outsourcing U.S. Intel. (Part 3)” Consortium News, 18 February, 2018.( https://consortiumnews.com/2018/02/18/a-crisis-in-intelligence-unthinkable-consequences-of-outsourcing-u-s-intel-part-3/?fbclid=IwAR2DKmAtaSMattb28apQZ-gCJ61stFYP3jem97t93PLm-bSpQLGp-0Z_4No) Accessed 18 February, 2018.

Wall Street, Banks, and Angry Citizens

Posted on January 8, 2019 by Reid Mukai

The Inequality Gap on a Planet Growing More Extreme

By Nomi Prins

Source: TomDispatch.com

As we head into 2019, leaving the chaos of this year behind, a major question remains unanswered when it comes to the state of Main Street, not just here but across the planet. If the global economy really is booming, as many politicians claim, why are leaders and their parties around the world continuing to get booted out of office in such a sweeping fashion?

One obvious answer: the post-Great Recession economic “recovery” was largely reserved for the few who could participate in the rising financial markets of those years, not the majority who continued to work longer hours, sometimes at multiple jobs, to stay afloat. In other words, the good times have left out so many people, like those struggling to keep even a few hundred dollars in their bank accounts to cover an emergency or the 80% of American workers who live paycheck to paycheck.

In today’s global economy, financial security is increasingly the property of the 1%. No surprise, then, that, as a sense of economic instability continued to grow over the past decade, angst turned to anger, a transition that — from the U.S. to the Philippines, Hungary to Brazil, Poland to Mexico — has provoked a plethora of voter upheavals. In the process, a 1930s-style brew of rising nationalism and blaming the “other” — whether that other was an immigrant, a religious group, a country, or the rest of the world — emerged.

This phenomenon offered a series of Trumpian figures, including of course The Donald himself, an opening to ride a wave of “populism” to the heights of the political system. That the backgrounds and records of none of them — whether you’re talking about Donald Trump, Viktor Orbán, Rodrigo Duterte, or Jair Bolsonaro (among others) — reflected the daily concerns of the “common people,” as the classic definition of populism might have it, hardly mattered. Even a billionaire could, it turned out, exploit economic insecurity effectively and use it to rise to ultimate power.

Ironically, as that American master at evoking the fears of apprentices everywhere showed, to assume the highest office in the land was only to begin a process of creating yet more fear and insecurity. Trump’s trade wars, for instance, have typically infused the world with increased anxiety and distrust toward the U.S., even as they thwarted the ability of domestic business leaders and ordinary people to plan for the future. Meanwhile, just under the surface of the reputed good times, the damage to that future only intensified. In other words, the groundwork has already been laid for what could be a frightening transformation, both domestically and globally.

That Old Financial Crisis

To understand how we got here, let’s take a step back. Only a decade ago, the world experienced a genuine global financial crisis, a meltdown of the first order. Economic growth ended; shrinking economies threatened to collapse; countless jobs were cut; homes were foreclosed upon and lives wrecked. For regular people, access to credit suddenly disappeared. No wonder fears rose. No wonder for so many a brighter tomorrow ceased to exist.

The details of just why the Great Recession happened have since been glossed over by time and partisan spin. This September, when the 10th anniversary of the collapse of the global financial services firm Lehman Brothers came around, major business news channels considered whether the world might be at risk of another such crisis. However, coverage of such fears, like so many other topics, was quickly tossed aside in favor of paying yet more attention to Donald Trump’s latest tweets, complaints, insults, and lies. Why? Because such a crisis was so 2008 in a year in which, it was claimed, we were enjoying a first class economic high and edging toward the longest bull-market in Wall Street history. When it came to “boom versus gloom,” boom won hands down.

None of that changed one thing, though: most people still feel left behind both in the U.S. and globally. Thanks to the massive accumulation of wealth by a 1% skilled at gaming the system, the roots of a crisis that didn’t end with the end of the Great Recession have spread across the planet, while the dividing line between the “have-nots” and the “have-a-lots” only sharpened and widened.

Though the media hasn’t been paying much attention to the resulting inequality, the statistics (when you see them) on that ever-widening wealth gap are mind-boggling. According to Inequality.org, for instance, those with at least $30 million in wealth globally had the fastest growth rate of any group between 2016 and 2017. The size of that club rose by 25.5% during those years, to 174,800 members. Or if you really want to grasp what’s been happening, consider that, between 2009 and 2017, the number of billionaires whose combined wealth was greater than that of the world’s poorest 50% fell from 380 to just eight. And by the way, despite claims by the president that every other country is screwing America, the U.S. leads the pack when it comes to the growth of inequality. As Inequality.org notes, it has “much greater shares of national wealth and income going to the richest 1% than any other country.”

That, in part, is due to an institution many in the U.S. normally pay little attention to: the U.S. central bank, the Federal Reserve. It helped spark that increase in wealth disparity domestically and globally by adopting a post-crisis monetary policy in which electronically fabricated money (via a program called quantitative easing, or QE) was offered to banks and corporations at significantly cheaper rates than to ordinary Americans.

Pumped into financial markets, that money sent stock prices soaring, which naturally ballooned the wealth of the small percentage of the population that actually owned stocks. According to economist Stephen Roach, considering the Fed’s Survey of Consumer Finances, “It is hardly a stretch to conclude that QE exacerbated America’s already severe income disparities.”

Wall Street, Central Banks, and Everyday People

What has since taken place around the world seems right out of the 1930s. At that time, as the world was emerging from the Great Depression, a sense of broad economic security was slow to return. Instead, fascism and other forms of nationalism only gained steam as people turned on the usual cast of politicians, on other countries, and on each other. (If that sounds faintly Trumpian to you, it should.)

In our post-2008 era, people have witnessed trillions of dollars flowing into bank bailouts and other financial subsidies, not just from governments but from the world’s major central banks. Theoretically, private banks, as a result, would have more money and pay less interest to get it. They would then lend that money to Main Street. Businesses, big and small, would tap into those funds and, in turn, produce real economic growth through expansion, hiring sprees, and wage increases. People would then have more dollars in their pockets and, feeling more financially secure, would spend that money driving the economy to new heights — and all, of course, would then be well.

That fairy tale was pitched around the globe. In fact, cheap money also pushed debt to epic levels, while the share prices of banks rose, as did those of all sorts of other firms, to record-shattering heights.

Even in the U.S., however, where a magnificent recovery was supposed to have been in place for years, actual economic growth simply didn’t materialize at the levels promised. At 2% per year, the average growth of the American gross domestic product over the past decade, for instance, has been half the average of 4% before the 2008 crisis. Similar numbers were repeated throughout the developed world and most emerging markets. In the meantime, total global debt hit $247 trillion in the first quarter of 2018. As the Institute of International Finance found, countries were, on average, borrowing about three dollars for every dollar of goods or services created.

Global Consequences

What the Fed (along with central banks from Europe to Japan) ignited, in fact, was a disproportionate rise in the stock and bond markets with the money they created. That capital sought higher and faster returns than could be achieved in crucial infrastructure or social strengthening projects like building roads, high-speed railways, hospitals, or schools.

What followed was anything but fair. As former Federal Reserve Chair Janet Yellen noted four years ago, “It is no secret that the past few decades of widening inequality can be summed up as significant income and wealth gains for those at the very top and stagnant living standards for the majority.” And, of course, continuing to pour money into the highest levels of the private banking system was anything but a formula for walking that back.

Instead, as more citizens fell behind, a sense of disenfranchisement and bitterness with existing governments only grew. In the U.S., that meant Donald Trump. In the United Kingdom, similar discontent was reflected in the June 2016 Brexit vote to leave the European Union (EU), which those who felt economically squeezed to death clearly meant as a slap at both the establishment domestically and EU leaders abroad.

Since then, multiple governments in the European Union, too, have shifted toward the populist right. In Germany, recent elections swung both right and left just six years after, in July 2012, European Central Bank (ECB) head Mario Draghi exuded optimism over the ability of such banks to protect the financial system, the Euro, and generally hold things together.

Like the Fed in the U.S., the ECB went on to manufacture money, adding another $3 trillion to its books that would be deployed to buy bonds from favored countries and companies. That artificial stimulus, too, only increased inequality within and between countries in Europe. Meanwhile, Brexit negotiations remain ruinously divisive, threatening to rip Great Britain apart.

Nor was such a story the captive of the North Atlantic. In Brazil, where left-wing president Dilma Rouseff was ousted from power in 2016, her successor Michel Temer oversaw plummeting economic growth and escalating unemployment. That, in turn, led to the election of that country’s own Donald Trump, nationalistic far-right candidate Jair Bolsonaro who won a striking 55.2% of the vote against a backdrop of popular discontent. In true Trumpian style, he is disposed against both the very idea of climate change and multilateral trade agreements.

In Mexico, dissatisfied voters similarly rejected the political known, but by swinging left for the first time in 70 years. New president Andrés Manuel López Obrador, popularly known by his initials AMLO, promised to put the needs of ordinary Mexicans first. However, he has the U.S. — and the whims of Donald Trump and his “great wall” — to contend with, which could hamper those efforts.

As AMLO took office on December 1st, the G20 summit of world leaders was unfolding in Argentina. There, amid a glittering backdrop of power and influence, the trade war between the U.S. and the world’s rising superpower, China, came even more clearly into focus. While its president, Xi Jinping, having fully consolidated power amid a wave of Chinese nationalism, could become his country’s longest serving leader, he faces an international landscape that would have amazed and befuddled Mao Zedong.

Though Trump declared his meeting with Xi a success because the two sides agreed on a 90-day tariff truce, his prompt appointment of an anti-Chinese hardliner, Robert Lighthizer, to head negotiations, a tweet in which he referred to himself in superhero fashion as a “Tariff Man,” and news that the U.S. had requested that Canada arrest and extradite an executive of a key Chinese tech company, caused the Dow to take its fourth largest plunge in history and then fluctuate wildly as economic fears of a future “Great Something” rose. More uncertainty and distrust were the true product of that meeting.

In fact, we are now in a world whose key leaders, especially the president of the United States, remain willfully oblivious to its long-term problems, putting policies like deregulation, fake nationalist solutions, and profits for the already grotesquely wealthy ahead of the future lives of the mass of citizens. Consider the yellow-vest protests that have broken out in France, where protestors identifying with left and right political parties are calling for the resignation of neoliberal French President Emmanuel Macron. Many of them, from financially starved provincial towns, are angry that their purchasing power has dropped so low they can barely make ends meet.

Ultimately, what transcends geography and geopolitics is an underlying level of economic discontent sparked by twenty-first-century economics and a resulting Grand Canyon-sized global inequality gap that is still widening. Whether the protests go left or right, what continues to lie at the heart of the matter is the way failed policies and stop-gap measures put in place around the world are no longer working, not when it comes to the non-1% anyway. People from Washington to Paris, London to Beijing, increasingly grasp that their economic circumstances are not getting better and are not likely to in any presently imaginable future, given those now in power.

A Dangerous Recipe

The financial crisis of 2008 initially fostered a policy of bailing out banks with cheap money that went not into Main Street economies but into markets enriching the few. As a result, large numbers of people increasingly felt that they were being left behind and so turned against their leaders and sometimes each other as well.

This situation was then exploited by a set of self-appointed politicians of the people, including a billionaire TV personality who capitalized on an increasingly widespread fear of a future at risk. Their promises of economic prosperity were wrapped in populist platitudes, normally (but not always) of a right-wing sort. Lost in this shift away from previously dominant political parties and the systems that went with them was a true form of populism, which would genuinely put the needs of the majority of people over the elite few, build real things including infrastructure, foster organic wealth distribution, and stabilize economies above financial markets.

In the meantime, what we have is, of course, a recipe for an increasingly unstable and vicious world.

The Psychological Warfare Behind Economic Collapse

Posted on January 7, 2019 by Reid Mukai

By Brandon Smith

Source: Alt-Market.com

The concept of using the economy as a weapon is not an alien one to most people. Generally, we understand the nature of feudalism and how various groups can be herded onto centralized plantations to be exploited for their labor. Some people see this as a consequence of “capitalism,” and others see it as an extension of socialism/communism. Sadly, many people wrongly assume that one is a solution to the other — meaning they think that crony capitalism is a solution to communist centralization or that communism is a solution to the corruption of crony capitalism. The reality is that this is just another false paradigm.

What is most disturbing is that the majority of the public have no grasp whatsoever of the true solution to the problem of corrupt or totalitarian economies: free markets.

Free markets have not existed within the global economy on a large scale for at least the past 100 years. The rise of central banking has eroded all vestiges of freedom in production and trade. Crony capitalism with its focus on corporate power and monopoly has nothing to do with free markets, despite the arguments of rather naive socialists who blame “free markets” for the problems of the world. If you ever hear anyone making this claim, I suggest you remind them that corporations and their advantages are a creation of governments.

The protections of corporate personhood, limited liability, unfair taxation of small business competition and legislation shielding corporations from civil lawsuits are all generated by government. Therefore, corporations and crony capitalism are much more a product of socialist-style systems, not free markets. In a true free market devoid of constant government interference and favoritism, corporations could not exist and would be obliterated over time by the competitive environment. And without limited liability, business moguls that violate the rule of law and harm others would be subject to personal prosecution and jail time instead of simply paying a fine. The cost/benefit ratio for corrupt business would disappear and thus corrupt businesses would flounder.

At the very core of the combination of corporate power and government protection (what some might say is the classical definition of fascism), rest the central banks, globalist institutions and the banking elites behind them. Central banks are the stewards of the various plantations (nations) and oversee the exploitation of these societies and their labor. Major globalist constructs like the IMF or the Bank for International Settlements are the policy makers for the national central banks. They hand down the strategy, and the central banks implement that strategy in concert. At the top of the pyramid sit the round table groups and the international bankers themselves, reaping the rewards of the cycle of theft.

As noted scholar, globalist insider and mentor to Bill Clinton, Carroll Quigley wrote in his book Tragedy And Hope:

“The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations. Each central bank … sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world.”

This is an easy notion to understand, I think. That is to say, the idea of oligarchs, the 1% if you will, controlling the other 99% through economic leverage is something that most people can agree exists, whether they identify with the political Right or the political Left. They may only have a vague notion of the facts behind this conspiracy, but they have seen it in action in their daily lives and they know it is real. Here is where most of them start to lose sight of the bigger picture, though…

Many see the conspiracy as merely a product of profit motive. That is to say, they don’t see it as a conscious and organized effort so much as unconsciously motivated greed. This reminds me of the most famous line from the movie The Usual Suspects:

“The greatest trick the devil ever pulled was to convince the world he didn’t exist.”

All the evidence overwhelmingly assures us that the conspiracy is fully conscious, organized and deliberate. It is not an ugly or random byproduct of “profit motive.” This is absurd when you consider the amount of coordination that is required or the number of think tanks and secretive conferences that occur yearly, from the Council on Foreign Relations, to Tavistock, to the Trilateral Commission, to the Brookings Institute, to Davos, to Bilderberg and to even weirder circles like Bohemian Grove. These are very real centers of power that can have far reaching influence in our daily lives.

To ignore this and reduce it all down to a “natural” extension of greed is to stupidly rest one’s soft spongy head in the jaws of organized evil while pretending you can’t smell the stench of its gingivitis.

The control mechanisms of the globalists are far more complex though than simply exploiting the flow of money or the accumulation of debt. Numerous liberty activists that have accepted the reality of institutionalized control of the economy still refuse to acknowledge another very real control mechanism — the use of economic collapse. I’m not sure why this idea is taken as farfetched by people who are already versed in the facts behind globalism. Their biases just won’t allow them to look at the environment objectively and see the usefulness of collapse as a tactic to gain more leverage and influence.

I believe the key to understanding economics and the world at large is to embrace the truth that almost everything that is done in the world of politics and finance is done to manipulate public psychology toward certain ends. That is to say, the true battlefield is the human mind; everything else is secondary.

But what ends am I referring to? To be more specific, the masses are constantly being pressured into more dependency, more fear, less self-sufficiency and less awareness of the grand scheme. We are encouraged to box with our own shadows, to produce for the system but not for ourselves, to struggle for minimal gains spent haphazardly on meaningless objectives, to fight with each other for scraps while remaining blind to the enormous parasites attached to our backs, to affiliate with pointless causes led by puppet politicians and controlled opposition, to never build anything ourselves, always waiting for some hero on a white horse to come and save us.

In essence, we are consistently being distracted or admonished from our natural inclination to establish free markets – free markets in thought, in trade, in information, in government, etc. The globalists are even willing to collapse entire economic systems to prevent this outcome and to keep us trapped in centralization. This prison is a mental one, for the most part. At any time, we could walk away from the totalitarian model and build our own free market systems. Getting to this point psychologically, getting people to take the first steps, is the hard part, however.

Economics as the globalists implement it is not about profit. It is sometimes about milking the population for labor or hard assets, but this is a side benefit. What economics is really about is molding minds; it is about changing the psychology of millions of people. It is about erasing inborn conscience and moral compass. It is about destroying long held societal principles and heritage. And sometimes, it is about erasing history altogether, killing most of a generation, and then writing a new history that is more suitable to the globalist ideal, which is much easier when there are so few people who remember the truth left to argue about it.

Globalists exhibit most, if not all, the traits of narcissistic sociopaths, who sometimes organize into cooperative groups as long as there is a promise of mutual gain and a structure of top down dominance. Narcissistic sociopaths are notorious for using crisis as a means to keep the people around them off balance and serving their interests. Their ultimate goal is rarely profit. Instead, they seek power; power over every aspect of every life of every person around them. A modicum of power is not enough. They want total control, and they will use any means to get it, including engineering threats and disasters to elicit compliance or to paint themselves as a necessary hero or “protector.”

A sociopath is not content to control people through fear or violence alone. They want their victims to love them; to view them as saviors instead of tyrants.

To reiterate, the goal of economic subversion is to break down the human mind and change it into something else; something less human or, at the very least, something less rebellious. One can only control people through debt and false rewards for so long before they start to recoil and revolt. Economic collapse, on the other hand, can change people fundamentally through persistent terror and through tragedy. Through trauma, the globalists hope to make men into monsters or robots.

The current system was never built to last. Our economy is designed to fail, yet few people seem to question why that is? They tell themselves that this is because greed has led the money elite to self-sabotage, but this is a fantasy. It is not just that the system is designed to fail, but that it is designed to fail according to an organized timetable.

The globalist magazine The Economist announced in 1988 the coming of a one-world currency system, one that would be launched in 2018 and that would require the decline of the U.S. economy and the dollar to open the door to the reset. It is no coincidence that we are now witnessing the beginning of a major financial crash in the last quarter of 2018. This crash was engineered starting in 2008 by central banks first through the inflation of a historic bubble encompassing almost all asset classes using stimulus measures and near zero interest rates, and it is being imploded today by the same central banks using tightening measures into economic weakness.

It is also no coincidence that the globalists have announced in 2018 that their intention is to adapt to a digital monetary system using blockchain technology and cryptocurrency. That is to say, the one world currency system predicted in The Economist is already here. They are only waiting for a crisis large enough to pressure society to accept total global centralization as a solution.

Forcing the public to embrace worldwide centralization would require several measures. First, the current system, which as stated is designed to fail, would have to be allowed to crash. Second, the crash would have to be blamed on someone other than the globalists and their ideology of globalism. Third, philosophical opponents of globalism (i.e., conservatives, nationalists and decentralization activists) would have to be demonized or eliminated so that the globalists can build their new world order without opposition. Fourth, the population would need to be sufficiently traumatized to the point of psychological submission and desperation, so that when the new system is introduced, they will be grateful for it, thus preventing future rebellion by making the public a willing cooperator in their own enslavement.

The success of such a plan is not guaranteed. In fact, I believe the globalists will ultimately fail in their endeavor as I have outlined in past articles. This does not mean though that they aren’t going to try. Liberty activists must accept the fact that the plan of the globalists involves the deliberate destruction of our current economy. Those who refuse will find themselves bewildered by the outcome of future financial developments, instead of being prepared. They will find themselves easily subdued, instead of ready to rebel. And they will wonder after it’s all over why they didn’t see it coming when the end game was so obvious.

Reflections on 2018, Forecasting 2019

Posted on January 3, 2019 by Reid Mukai

By Robert J. Burrowes

In many ways it is painful to reflect on the year 2018; a year of vital opportunities lost when so much is at stake.

Whether politically, militarily, socially, economically, financially or ecologically, humanity took some giant strides backwards while passing up endless opportunities to make a positive difference in our world.

Let me, very briefly, identify some of the more crucial backward steps, starting with the recognition by the Bulletin of the Atomic Scientists in January that the year had already started badly when they moved the Doomsday Clock to two minutes to midnight, the closest it has ever been to ‘doomsday’ (and equal to 1953 when the Soviet Union first exploded a thermonuclear weapon matching the US capacity). See ‘It is now two minutes to midnight’.

This change reflected the perilous state of our world, particularly given the renewed threat of nuclear war and the ongoing climate catastrophe. It didn’t even mention the massive and unrelenting assault on the biosphere (apart from the climate) nor, of course, the ongoing monumental atrocities against fellow human beings.

Some Lowlights of 2018

The global elite, using key elite fora such as the Group of 30, the Trilateral Commission, the Bilderberg Group and the World Economic Forum, continued to plan, generate and exacerbate the many ongoing wars, deepening exploitation within the global economy, climate and environmental destruction, and the refugee crisis, among many other violent impacts, in pursuit of greater elite power, profit and privilege.

International organizations (such as the United Nations, the World Bank and International Monetary Fund) and national governments used military forces, legal systems, police forces and prison systems around the world to serve the global elite by defending its interests against the bulk of the human population, including those individuals and organizations audacious enough to challenge elite power, profit and privilege.

$US1.7 trillion was officially spent worldwide on military weapons to kill fellow human beings and other lifeforms, and to destroy the biosphere. See ‘Global military spending remains high at $1.7 trillion’.

However, so out-of-control is this spending that the United States has now spent $US21trillion on its military in the past 20 years for which it cannot even account! That’s right, $US1trillion each year, including 2018, above the official US national budget for killing is ‘lost’. See Army General Fund Adjustments Not Adequately Documented or Supported, ‘Has Our Government Spent $21 Trillion Of Our Money Without Telling Us?’ and ‘The Pentagon Can’t Account for $21 Trillion (That’s Not a Typo)’.

War and other military violence continued to rage across the planet wreaking devastation on many countries and regions, particularly in the Middle East and Africa. If you missed this, read what is happening to Yemen, described as ‘ the world’s worst [humanitarian] crisis in decades’ with ‘three quarters of the entire Yemeni population – 22 million women, children and men – dependent on some form of humanitarian assistance to survive.’ See ‘Yemen: UN chief hails “signs of hope” in world’s worst man-made humanitarian disaster’.

Not content with the nature and extent of the military violence they are inflicting already, during 2018 elites continued to plan how to do it more effectively in future with research and development of artificial intelligence just one manifestation of this: ‘an “arms race in AI” is now underway, with the U.S., China, Russia, and other nations (including Britain, Israel, and South Korea) seeking to gain a critical advantage in the weaponization of artificial intelligence and robotics’ so that ‘artificial intelligence will be applied to every aspect of warfare, from logistics and surveillance to target identification and battle management’. See ‘“Alexa, Launch Our Nukes!” Artificial Intelligence and the Future of War’.

The United States government unilaterally withdrew from the Intermediate Nuclear Forces (INF) Treaty (which limits the deployment of intermediate range nuclear weapons).

Another significant proportion of global private financial wealth – conservatively estimated by the Tax Justice Network in 2010 to already total between $US21 and $US32 trillion – has been invested virtually tax-free through the world’s still-expanding black hole of more than 80 ‘offshore’ tax havens (such as the City of London Corporation, Jersey, Guernsey, the Isle of Man, Bermuda, the Cayman Islands, Hong Kong, Nauru, St. Kitts, Antigua, Tortola, Switzerland, the Channel Islands, Monaco, Cyprus, Gibraltar and Liechtenstein). This is just financial wealth. ‘A big share of the real estate, yachts, racehorses, gold bricks – and many other things that count as non-financial wealth – are also owned via offshore structures where it is impossible to identify the owners.’ See Tax Justice Network.

Controlled by the global elite, Wall Street and other major banks manage this monstrous diversion of wealth under Government protection. ‘Their business is fraud and grand theft.’ Tax haven locations offer more than tax avoidance. ‘Almost anything goes on.’ It includes ‘bribery, illegal gambling, money laundering, human and sex trafficking, arms dealing, toxic waste dumping, conflict diamonds and endangered species trafficking, bootlegged software, and endless other lawless practices.’ See ‘Trillions Stashed in Offshore Tax Havens’.

The world’s major corporations continued to inflict enormous ongoing violence (in a myriad of ways) in their pursuit of endless profit at the expense of living beings (human and otherwise) and Earth’s biosphere by producing and marketing a wide range of life-destroying products ranging from nuclear weapons and nuclear power to junk food, pharmaceutical drugs, synthetic poisons and genetically mutilated organisms (GMOs). These corporations include those involved in the following industries: weapons manufacturers, major banks and their ‘industry groups’ like the International Monetary Conference, asset management firms, investment companies, financial services companies, fossil fuel (coal, oil and gas) corporations, technology corporations, media corporations, major marketing and public relations corporations, agrochemical (pesticides, seeds, fertilizers) giants, pharmaceutical corporations, biotechnology (genetic mutilation) corporations, mining corporations, nuclear power corporations, food multinationals and water corporations. You can see a list of the major corporations in this article: ‘The Global Elite is Insane Revisited’.

More than a billion people continued to live under occupation, dictatorship or threat of genocidal assault. See, for example, ‘500 Years is Long Enough! Human Depravity in the Congo’.

36,500,000 human beings (mainly in Africa, Asia and Central/South America) were starved to death.

18,250,000 children were killed by adults in wars, by starving them to death, and in a large variety of other ways.

8,000,000 children were trafficked into sexual slavery; executed in sacrificial killings after being kidnapped; bred to be sold as a ‘cash crop’ for sexual violation, to produce child pornography (‘kiddie porn’) and ‘snuff’ movies (in which children are killed during the filming); ritually tortured and murdered as well as raped by dogs trained for the purpose. See ‘Humanity’s “Dirty Little Secret”: Starving, Enslaving, Raping, Torturing and Killing our Children’.

Hundreds of thousands of individuals were kidnapped or tricked into slavery, which now denies 46,000,000 human beings the right to live the life of their choice, condemning many individuals – especially women and children – to lives of sexual slavery, forced labor or as child soldiers. See ‘The Global Slavery Index’ and ‘46 million people living as slaves, latest global index reveals’.

Well over 100,000 people (particularly Falun Gong practitioners) in China, where an extensive state-controlled program is conducted, were subjected to forced organ removal for the trade in human organs. See Bloody Harvest and The Slaughter.

15,750,000 people were displaced by war, persecution or famine. There are now 68,500,000 people, more that half of whom are children and 10,000,000 of whom are stateless, who have been forcibly displaced worldwide and remain precariously unsettled, usually in adverse circumstances. One person in the world is forcibly displaced every two seconds. See ‘Figures at a Glance’.

Millions of people were made homeless in their own country as a result of war, persecution, ‘natural’ disasters, internal conflict, poverty or as a result of elite-driven national economic policy. The last time a global survey was attempted – by the United Nations back in 2005 – an estimated 100 million people were homeless worldwide. As many as 1.6 billion people lack adequate housing (living in slums, for example). See ‘Global Homelessness Statistics’.

73,000 species of life (plants, birds, animals, fish, amphibians, insects and reptiles) on Earth were driven to extinction with the worldwide loss of insects, including vital pollinators such as bees, now between 75% and 90%, depending on the species. See ‘Insect Decimation Upstages Global Warming’. Have you seen a butterfly recently?

Separately from global species extinctions, Earth continued to experience ‘a huge episode of population declines and extirpations, which will have negative cascading consequences on ecosystem functioning and services vital to sustaining civilization. We describe this as a “biological annihilation” to highlight the current magnitude of Earth’s ongoing sixth major extinction event.’ Moreover, local population extinctions ‘are orders of magnitude more frequent than species extinctions. Population extinctions, however, are a prelude to species extinctions, so Earth’s sixth mass extinction episode has proceeded further than most assume.’ See ‘Biological annihilation via the ongoing sixth mass extinction signaled by vertebrate population losses and declines’ and ‘Biological Annihilation on Earth Accelerating’.

Wildlife trafficking, worth up to $20 billion in 2018, is pushing many endangered species to the brink of extinction. Illegal wildlife products include jewelry, traditional medicine, clothing, furniture, and souvenirs, as well as some exotic pets, most of which are sold to unaware/unconcerned consumers in the West. See, for example, Stop Wildlife Trafficking.

16,000,000 acres of pristine rainforest were destroyed (with more than 40,000 tropical tree species now threatened with extinction). See ‘Measuring the Daily Destruction of the World’s Rainforests’, ‘Estimating the global conservation status of more than 15,000 Amazonian tree species’ and ‘Half of Amazon Tree Species Face Extinction’.

Vast quantities of soil were washed away as we destroyed the rainforests, and enormous quantities of both inorganic constituents (such as heavy metals like cadmium, chromium, lead, mercury, nickel and zinc) and organic pollutants (particularly synthetic chemicals in the form of fertilizers, pesticides and herbicides) were dumped into the soil as well, thus reducing its nutrients and killing the microbes within it. We also contaminated enormous quantities of soil with radioactive waste. See Soil-net, ‘Glyphosate effects on soil rhizosphere-associated bacterial communities’ and ‘Disposing of Nuclear Waste is a Challenge for Humanity’.

The TEPCO nuclear power plant in Fukushima, Japan discharged 109,000 tons of radioactive waste into the Pacific Ocean killing an incalculable number of fish and other marine organisms and indefinitely contaminating expanding areas of that ocean. See ‘Fukushima: A Nuclear War without a War: The Unspoken Crisis of Worldwide Nuclear Radiation’.

Human use of fossil fuels to power aircraft, shipping and vehicles (among other purposes) released 10 billion metric tons (gigatons) of carbon dioxide into Earth’s atmosphere, a 2.7% increase over 2017. See ‘Global Carbon Budget 2018’ and ‘Carbon dioxide emissions will hit a record high globally in 2018’. As a measure of their concern elite-controlled governments and corporations around the world are currently planning or have under construction 1,380 new coal plants? That’s right. 1,380 new coal plants. In 59 countries. See ‘NGOs Release List of World’s Top Coal Plant Developers’ and ‘2018 Coal Plant Developers List’.

90 billion land animals and 60 billion marine animals were killed for human consumption, more than 100 million animals were killed for laboratory purposes in the United States alone and there were other animal deaths in shelters, zoos and in blood sports. See ‘How Many Animals Are Killed Each Year?’

In addition, 40 million animals were killed for their fur. Approximately 30 million of these animals were raised on fur farms and killed, about 10 million wild animals were trapped and killed, and hundreds of thousands of seals were killed for their fur. See ‘How Many Animals are Killed Each Year?’

Farming of animals for human consumption released 7,100,000,000 tonnes of CO2-equivalent into Earth’s atmosphere. About 44% of livestock emissions were in the form of methane (which was 44% of anthropogenic CH4 emissions), 29% as Nitrous Oxide (which was 53% of anthropogenic N2O emissions) and 27% as Carbon Dioxide (which was 5% of anthropogenic CO2 emissions). See ‘GHG Emissions by Livestock’.

Human use of fossil fuels and farming of animals released 3.2 million metric tons of (CO2 equivalent) nitrous oxide (N2O) into Earth’s atmosphere. See ‘Nitrous oxide emissions’.

As a result of previous greenhouse gas (GHG) emissions and the consequent rise of about one degree celsius in the global temperature, causing the melting of Arctic permafrost and undersea methane ice clathrates, an incalculable quantity of methane was uncontrollably released into the atmosphere during 2018 (with the quantity being released getting ever closer to ‘exploding’). See ‘7,000 underground gas bubbles poised to “explode” in Arctic’ and ‘Release of Arctic Methane “May Be Apocalyptic,” Study Warns’.

Ice in the Antarctic is melting at a record-breaking rate, losing 219 billion tonnes of ice in 2018 at a rate that has accelerated threefold in the last five years. See ‘Antarctic ice melting faster than ever, studies show’.

An incalculable amount of agricultural poisons, fossil fuels and other wastes was discharged into the ocean, adversely impacting life at all ocean depths – see ‘Staggering level of toxic chemicals found in creatures at the bottom of the sea, scientists say’ – and generating ocean ‘dead zones’: regions that have too little oxygen to support marine organisms. See ‘Our Planet Is Exploding With Marine “Dead Zones”’.

At least 8 million metric tons of plastic, of which 236,000 tons were microplastics, was discharged into the ocean. See ‘Plastic waste inputs from land into the ocean’ and ‘Plastics in the Ocean’.

Earth’s fresh water and ground water was further depleted and contaminated. These contaminants included bacteria, viruses and household chemicals from faulty septic systems; hazardous wastes from abandoned and uncontrolled hazardous waste sites (of which there are over 20,000 in the USA alone); leaks from landfill items such as car battery acid, paint and household cleaners; the pesticides, herbicides and other poisons used on farms and home gardens; radioactive waste from nuclear tests; and the chemical contamination caused by hydraulic fracturing (fracking) in search of shale gas, for which about 750 chemicals and components, some extremely toxic and carcinogenic like lead and benzene, have been used. See ‘Groundwater contamination’, ‘Groundwater drunk by BILLIONS of people may be contaminated by radioactive material spread across the world by nuclear testing in the 1950s’ and ‘Fracking chemicals’.

The longstanding covert military use of geoengineering – spraying tens of millions of tons of highly toxic metals (including aluminium, barium and strontium) and toxic coal fly ash nanoparticulates (containing arsenic, chromium, thallium, chlorine, bromine, fluorine, iodine, mercury and radioactive elements) into the atmosphere from jet aircraft to weaponize the atmosphere and weather – in order to enhance elite control of human populations, continued unchecked. Geoengneering is systematically destroying Earth’s ozone layer – which blocks the deadly portion of solar radiation, UV-C and most UV-B, from reaching Earth’s surface – as well as adversely altering Earth’s weather patterns and polluting its air, water and soil at incredible cost to the health and well-being of living organisms and the biosphere. See ‘Geoengineering Watch’.

As one outcome of our dysfunctional parenting model and political systems, fascism continued to rise around the world. See ‘The Psychology of Fascism’.

Despite the belief that we have ‘the right to privacy’, privacy (in any sense of the word) was ongoingly eroded in 2018 and is now effectively non-existent, particularly thanks to Alphabet (owner of Google). Taken together, ‘Uber, Amazon, Facebook, eBay, Tinder, Apple, Lyft, Foursquare, Airbnb, Spotify, Instagram, Twitter, Angry Birds… have turned our computers and phones into bugs that are plugged in to a vast corporate-owned surveillance network. Where we go, what we do, what we talk about, who we talk to, and who we see – everything is recorded and, at some point, leveraged for value.’ Moreover, given Google’s integrated relationship with the US government, the US military, the CIA, and major US weapons manufacturers, there isn’t really anything you can do that isn’t known by those who want to know it. In essence, Google is ‘a powerful global corporation with its own political agenda and a mission to maximise profits for shareholders’ and it partly achieves this by expanding the surveillance programs of the national security state at the direction of the global elite. See ‘Google’s Earth: How the Tech Giant Is Helping the State Spy on Us’ and the documentary ‘The Modern Surveillance State’.

The right to free speech was ongoingly eroded in 2018. For just a couple of examples in the United States alone, see ‘Marc Lamont Hill On Getting Fired From CNN, His Remarks On Palestine + More’ and ‘A Texas Elementary School Speech Pathologist Refused to Sign a Pro-Israel Oath, Now Mandatory in Many States – so She Lost Her Job’.

Believing that we know better than evolution, humans created the first gene-edited baby in 2018. See ‘Why we are not ready for genetically designed babies’ and ‘China’s Golem Babies: There is Another Agenda’.

An incalculable amount of junk was added to the 100 trillion items of junk already in Space. See ‘Space Junk: Tracking & Removing Orbital Debris’.

Incalculable amounts of antibiotic waste, nuclear waste, nanowaste and genetically engineered organisms were released into Earth’s biosphere. See ‘Junk Planet: Is Earth the Largest Garbage Dump in the Universe?’

Ongoing violence against children – see ‘Why Violence?’ and ‘Fearless Psychology and Fearful Psychology: Principles and Practice ’ – ensured that more people will grow up accepting (and quite powerless to challenge) our dysfunctional and violent world, as described above.

The corporate media, education and entertainment industries continued to distract us from reality ensuring that most people remain oblivious to our predicament and their own role in it, let alone what they can do to respond powerfully.

While the above list of the setbacks humanity and the Earth suffered in 2018 is very incomplete, it still provides clear evidence that humanity is rapidly entering a dystopian future far more horrific than the worst novel or film in the genre. The good news is that, at the current rate, this dystopian world will be shortlived as humans drive themselves over the edge of extinction. See ‘Human Extinction by 2026? A Last Ditch Strategy to Fight for Human Survival’.

But so that the picture is clear and ‘balanced’: were there any gains made against this onslaught?

Of course, it goes without saying that the global elite, international organizations (such as the United Nations), governments, corporations and other elite agents continued to live in delusion/denial endlessly blocking any initiative requiring serious action that would cut into corporate profits, or arguing over tangential issues of insignificant consequence to humanity’s future.

In short, I could find no record of official efforts during the year to plan for the development and implementation of a comprehensive, just and sustainable peace, but perhaps I missed it.

Separately from this, there have been some minor activist gains: for example, some western banks and insurance companies are no longer financially supporting the expansion of the western weapons industry and the western coal industry, some rainforest groups have managed to save portions of Earth’s rainforest heritage, and activist groups continue to work on a variety of issues sometimes making modest gains.

In essence however, as you probably realize, many of the issues above are not even being tackled and, even when they are, activist efforts have been hampered by inadequate analysis of the forces driving conflicts and problems, limited vision (particularly unambitious aims such as those in relation to ending war and the climate catastrophe), unsophisticated strategy (necessary to have profound impact against a deeply entrenched, highly organized and well-resourced opponent, with the endless lobbying of elite institutions, such as governments and corporations, despite this effort simply absorbing and dissipating our dissent, as is intended – as Mark Twain once noted: ‘If voting made a difference, they wouldn’t let us do it.’) and failure to make the difficult decisions to promote necessary solutions that are ‘unpopular’.

Fundamentally, these ‘difficult decisions’ include the vital need to campaign for the human population, particularly in the West, to substantially reduce their consumption – by 80% – involving both energy and resources of every kind as the central feature of any strategy to curtail destruction of the environment and climate, to undermine capitalism and to eliminate the primary driver of war: violent resource acquisition from Middle Eastern and developing nations for the production of consumer goods and services for western consumers.

While we live in the delusion that we can simply substitute renewable energy for fossil fuels and nuclear power (or believe such delusions that a 1.5 degrees celsius increase above the preindustrial temperature is acceptable or that we have an ‘end of century’ timeframe to solve the climate crisis), we ignore the fundamental reality that Earth’s biosphere is under siege on many fronts as a result of our endless extraction of its natural resources – such as fresh water, minerals, timber and, again, fossil fuels – for consumer production and the provision of services that go well beyond energy.

In short, for example, we will not save the world’s rainforests because we switch to renewable energy. We must reduce demand for the consumer products that require rainforest inputs. We must stop mining the Earth for minerals that end up in our mobile phones, computers, vehicles, ships and aircraft by not using the products and services these minerals make possible. We must stop eating meat and other animal products. And so the list goes on.

Forecasting 2019

In many ways it is painful to forecast what will happen in 2019 mainly because of the absurd simplicity of doing so: It will be another year when vital opportunities will be lost when so much is at stake.

Given the insanity of the global elite – see ‘The Global Elite is Insane Revisited’ – which will continue to drive the dynamics producing the lowlights mentioned above with the active complicity of their agents in governments and corporations coupled with a human population that is largely terrified, self-hating and powerless to resist – see ‘In Defense of the Human Individual’ – it is a straightforward task to forecast what will happen in 2019.

So let me forecast 40 lowlights for 2019:

See list above.
See list above.
See list above.

.
.

See list above.

So unless you play your part, 2019 and the few years thereafter will simply be increasingly worse versions of 2018 and it will all be over by 2026. See ‘Human Extinction by 2026? A Last Ditch Strategy to Fight for Human Survival’ which cites a wide range of scientific and other evidence which you are welcome to consider for yourself if this date seems premature.

Responding Powerfully

If you already feel able to act powerfully in response to this multifaceted crisis, in a way that will have strategic impact, you are invited to consider joining those participating in ‘The Flame Tree Project to Save Life on Earth ’, which outlines a simple plan for you to systematically reduce your consumption, by at least 80%, involving both energy and resources of every kind – water, household energy, transport fuels, metals, meat, paper and plastic – while dramatically expanding your individual and community self-reliance in 16 areas, so that all environmental and climate concerns are effectively addressed.

If you are also interested in conducting or participating in a campaign to systematically address one of the issues identified above, you are welcome to consider acting strategically in the way that Mohandas K. Gandhi did. Whether you are engaged in a peace, climate, environment or social justice campaign, the 12-point strategic framework and principles are the same. See Nonviolent Campaign Strategy. And, for example, you can see a basic list of the strategic goals necessary to end war and halt the climate catastrophe. See ‘Strategic Aims’.

If you want to know how to nonviolently defend against a foreign invading power or a political/military coup, to liberate your country from a dictatorship or a foreign occupation, or to defeat a genocidal assault, you will learn how to do so in ‘Nonviolent Defense/Liberation Strateg y ’.

If you are interested in nurturing children to live by their conscience and to gain the courage necessary to resist elite violence fearlessly, while living sustainably despite the entreaties of capitalism to over-consume, then you are welcome to make ‘My Promise to Children’.

To reiterate: capitalism, war and destruction of the environment and climate are outcomes of our dysfunctional parenting of children which distorts their intellectual and emotional capacities, destroys their conscience and courage, and actively teaches them to over-consume as compensation for having vital emotional needs denied. See ‘Love Denied: The Psychology of Materialism, Violence and War’.

If your own intellectual and/or emotional functionality is the issue and you have the self-awareness to perceive that, and wish to access the conscience and courage that would enable you to act powerfully, try ‘Putting Feelings First’.

And if you want to be part of the worldwide movement committed to ending all of the violence identified above, consider signing the online pledge of ‘The People’s Charter to Create a Nonviolent World’.

In summary: if we do not rapidly, systematically and substantially reduce our consumption in several key areas and radically alter our parenting model, while resisting elite violence strategically on several fronts, homo sapiens will enter Earth’s fossil record within a few years. Given the fear, self-hatred and powerlessness that paralyses most humans, your choices in these regards are even more vital than you realize.

Biodata: Robert J. Burrowes has a lifetime commitment to understanding and ending human violence. He has done extensive research since 1966 in an effort to understand why human beings are violent and has been a nonviolent activist since 1981. He is the author of ‘Why Violence?’ His email address is flametree@riseup.net and his website is here.

Robert J. Burrowes
P.O. Box 68
Daylesford, Victoria 3460
Australia

Email: flametree@riseup.net

Websites:
Nonviolence Charter
Flame Tree Project to Save Life on Earth
‘Why Violence?’
Feelings First
Nonviolent Campaign Strategy
Nonviolent Defense/Liberation Strategy
Anita: Songs of Nonviolence
Robert Burrowes
Global Nonviolence Network

Wake From The Nightmare Or Eternal Sleep For Humanity

Posted on January 1, 2019 by Reid Mukai

By Frank Scott

Source: Dissident Voice

The tradition of the dead generations weighs like a nightmare on the minds of the living.

— Karl Marx

Marx offered a thought for all seasons but one that might especially ring true during what is supposed to be a season of peace, joy and humanity. Contradicted by the ever more insanely harsh reality of marketing mass murder under the guise of creating freedom, much of our race, though still too few to radically transform the totality of our reality, has begun to rise in defense of all against a system that profits only a few. France’s recent experience was part of a hopeful trend in that segments of a public which has been bought, sold and rented into near poverty showed they are tired and demanded social justice over becoming what capital sees as a loss of its private profits. Their awakening from humanity’s nightmare, however brief it may seem, is inspiring as well as overdue. The actions of a predominately working class group of citizens demonstrating with enough fervor to force the French government to at least renege on some issues is in stark contrast to Americans trooping off to the polls to “resist” a personality while their system – the same one the French are up in arms about – disintegrates all around them. If we have anything to be happy about during the annual shopping frenzy of an alleged spiritual time for humanity, in a small way it’s a few changes in our congress, but in a greater way it’s the sign of awakening we see in France which will hopefully spread to more places in the New Year.

The social democratic salvation capital arranged after the depression of the twenties and thirties has collapsed and become a renewal of the worst forms of fascist capital that preceded and soon followed that brief cosmetic safety for some made possible only by the reduction to disfigured ugliness of others. The rise in status of a new middle class for millions in the western world was only possible with the misery of greater multitudes in what was called the third, or undeveloped world, but also the poverty class in that same west. There were people sleeping on the streets of America before, during, and after the last breakdown of capital given the brand name “the great depression”. This latest collapse that began in 2008 and is very possibly the last one that will wake up more than the French is only different in that it is worse and the numbers in the street have grown so much only the intellectually and morally blind cannot see them.

The wealth accumulation of the return to market fundamentalist roots was and continues to be shared by a shrinking minority while growing majorities have seen the facade of humanity brought about by social democratic capitalism dissolve in the reality of a take-no-prisoners brand of marketing. This Artificially Intelligent farce not only prides itself on the creation of poverty and warfare but dulls the sense of many of its innocent subjects by filling heads with propaganda that passes for news, entertainment to distract consciousness further, and the combination of the two that marketers call “infotainment”.

Thus we have a perverse form of capital therapy that herds us into near frenzied lynch mobs of genuinely frustrated and set upon souls directing energy at everything but the cause of most if not all the things that plague us. Rich individuals approaching deity status with economic powers beyond those of past royal despots are relatively invisible while some of their employees in government attract enough attention to be replaced by other of their employees who appeal to one or another interest or identity group affording pleasure to some, pain to most and continued ruling power to the incredibly rich minority at the top of the modern pyramid of capital.

Preposterous stories blaming Russia, China, Iran and possibly the Tooth Fairy for every sign of failure in what passes for a language perversion called the “free world” confuse and convince enough among the well fed and supposedly educated classes for the moment. When hardship eventually hits them in a material, rather than mental way, they will hopefully leave their identity groups and join the human race in the work necessary to transform global society.

Until the public good comes before private profit, things will get worse for all of us and any focus that continues separation of humans from potential majorities into smaller identity groups is simply the age old divide and conquer strategies always employed by minority rulers. This helps lead people with individual moral codes that find poverty and injustice intolerable to not only tolerate but to practice the most dreadful social policies imaginable. Privately, we Americans are as good, kind, compassionate, decent, and humane as any people on earth. Socially, however, we spend trillions on war, billions on pets, leave millions to live in poverty and hundreds of thousands to live on the street, and thus collectively become among the most degenerate moral perverts on the planet.

The skin tone, ethnicity, religion, sex or sexual preference of those serving capital while eating meals and flushing toilets at the white house or in slightly lesser roles in congress makes no difference to their victims reduced to cleaning the debris of death and destruction in the places where they oversee the bombing and looting. After their homes and nations are ruined we welcome some of them as migrants offering us cheap labor and a balm for our souls to maintain holiday spirit until the next slaughter we conduct. Food, clothing and shelter are basic human needs, not separate identity practices. They become so under private profit first economics that assure only some of the public will experience good, and that group is shrinking. The only way to assure a better life for all is for the ruling power to come from people who put the public good first, before any private gain is considered. Everyone has to be assured of food, clothing and shelter before anyone can aspire and work for even more by achieving private profit at the market. There is only one way to achieve that change and end society’s nightmare: the democratic forces of humanity must replace the market forces of capital. Happy New Year.

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After the Crash

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Category Archives: Economics