Putting an End to the Rent Economy

Posted on January 16, 2018 by Reid Mukai

By Michael Hudson and Vlado Plaga

Interview with Vlado Plaga in the German magazine FAIRCONOMY, September 2017.

Originally, you didn’t want to become an economist. How did it come that you changed your plans and digged so deep into economics?

I found economics aesthetic, as beautiful as astronomy. I came to New York expecting to become an orchestra conductor, but I met one of the leading Wall Street economists, who convinced me that economics and finance was beautiful.

I was intrigued by the concept of compound interest and by the autumnal drain of money from the banking system to move the crops at harvest time. That is when most crashes occurred. The flow of funds was the key.

I saw that these economic cycles were mainly financial: the build-up of debt and its cancellation or wipe-out and bankruptcy occurring again and again throughout history. I wanted to study the rise and fall of financial economies.

But when you studied at the New York University you were not taught the things that really interested you, were you?

I got a PhD as a union card. In order to work on Wall Street, I needed a PhD. But what I found in the textbooks was the opposite of everything that I experienced on Wall Street in the real world. Academic textbooks describe a parallel universe. When I tried to be helpful and pointed out to my professors that the textbooks had little to do with how the economy and Wall Street actually work, that did not help me get good grades. I think I got a C+ in money and banking.

So I scraped by, got a PhD and lived happily ever after in the real world.

So you had to find out on your own… Your first job was at the Savings Banks Trust Company, a trust established by the 127 savings banks that still existed in New York in the 1960s. And you somehow hit the bull’s eye and were set on the right track, right from the start: you’ve been exploring the relationship between money and land. You had an interesting job there. What was it?

Savings banks were much like Germany’s Landesbanks. They take local deposits and lend them out to home buyers. Savings and Loan Associations (S&Ls) did the same thing. They were restricted to lending to real estate, not personal loans or for corporate business loans. (Today, they have all been turned into commercial banks.)

I noticed two dynamics. One is that savings grew exponentially, almost entirely by depositors getting dividends every 3 months. So every three months I found a sudden jump in savings. This savings growth consisted mainly of the interest that accrued. So there was an exponential growth of savings simply by inertia.

The second dynamic was that all this exponential growth in savings was recycled into the real estate market. What has pushed up housing prices in the US is the availability of mortgage credit. In charting the growth of mortgage lending and savings in New York State, I found a recycling of savings into mortgages. That meant an exponential growth in savings to lend to buyers of real estate. So the cause of rising real estate prices wasn’t population or infrastructure. It was simply that properties are worth whatever banks are able and willing to lend against them.

As the banks have more and more money, they have lowered their lending standards.

It’s kind of automatic, it’s just a mathematical law…

Yes, a mathematical law that is independent of the economy. In other words, savings grow whether or not the economy is growing. The interest paid to bondholders, savers and other creditors continues to accrue. That turns out to be the key to understanding why today’s economy is polarizing between creditors and debtors.

You wrote in “Killing the Host” that your graphs looked like Hokusai’s “Great Wave off Konagawa” or even more like a cardiogram. Why?

Any rate of interest has a doubling time. One way or another any interest-bearing debt grows and grows. It usually grows whenever interest is paid. That’s why it looks like a cardiogram: Every three months there’s a jump. So it’s like the Hokusai wave with a zigzag to reflect the timing of interest payments every three months.

The exponential growth of finance capital and interest-bearing debt grows much faster then the rest oft he economy, which tends to taper off in an S-curve. That’s what causes the business cycle to turn down. It’s not really a cycle, it’s more like a slow buildup like a wave and then a sudden vertical crash downward.

This has been going on for a century. Repeated financial waves build up until the economy becomes so top-heavy with debt that it crashes. A crash used to occur every 11 years in the 19th century. But in the United States from 1945 to 2008, the exponential upswing was kept artificially long by creating more and more debt financing. So the crash was postponed until 2008.

Most crashes since the 19th century had a silver lining: They wiped out the bad debts. But this time the debts were left in place, leading to a massive wave of foreclosures. We are now suffering from debt deflation. Instead of a recovery, there’s just a flat line for 99% of the economy.

The only layer of the economy that is growing is the wealthiest 5% layer – mainly the Finance, Insurance and Real Estate (FIRE) sector. That is, creditors living of interest and economic rent: monopoly rent, land rent and financial interest. The rest of the economy is slowly but steadily shrinking.

And the compound interest that was accumulated was issued by the banks as new mortgages. Isn’t this only logical for the banks to do?

Savings banks and S&Ls were only allowed to lend for mortgages. Commercial banks now look for the largest parts of the economy as their customers. Despite the fact that most economic textbooks describe industry and manufacturing as being the main part of economy, real estate actually is the largest sector. So most bank lending is against real estate and, after that, oil, gas and mining.

That explains why the banking and financial interests have become the main lobbyists urging that real estate, mining and oil and gas be untaxed – so that there’ll be more economic rent left to pay the banks. Most land rent and natural resource rent is paid out as interest to the banks instead of as taxes to the government.

So instead of housing becoming cheaper and cheaper it turns out to be much less affordable in our days than in the 1960s?

Credit creation has inflated asset prices. The resulting asset-price inflation is the distinguishing financial feature of our time. In a race tot he bottom, banks have steadily lowered the terms on which they make loans. This has made the economy more risky.

In the 1960s, banks required a 25-30% down payment by the buyer, and limited the burden of mortgage debt service to only 25% of the borrower’s income. But interest is now federally guaranteed up to 43% of the home buyer’s income. And by 2008, banks were making loans no down payment at all. Finally, loans in the 1960s were self-amortizing over 30 years. Today we have interest-only loans that are never paid off.

So banks loan much more of the property’s market price. That is why most of the rental value of land isn’t paid to the homeowner or commercial landlord any more. It’s paid to the banks as interest.

Was this the reason for the savings and loan crisis that hit the US in 1986 and that was responsible for the failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995?

The problem with the savings and loan crisis was mainly fraud! The large California S&L’s were run by crooks, topped by Charles Keating. Many were prosecuted for fraud and sent to jail. By the 1980s the financial sector as a whole had become basically a criminalized sector. My colleague Bill Black has documented most of that. He was a prosecutor of the S&L frauds in the 1980s, and wrote a book “The best way to rob a bank is to own one”.

That’s a famous quotation, I also heard that.

Fraud was the main financial problem, and remains so.

Since 2007 Americans were strangled by their mortgages in the sub-prime crisis…

These were essentially junk mortgages, and once again it was fraud. Already in 2004 the FBI said that the American economy was suffering the worst wave of bank fraud in history. Yet there was no prosecution. Essentially in the United States today, financial fraud is de-criminalized. No banker has been sent to jail, despite banks paying hundreds of billions of dollars of fines for financial fraud. These fines are a small portion of what they took illegally. Such payments are merely a cost of doing business. The English language was expanded to recognize junk loans. Before the financial crash the popular press was using the word “junk mortgages” and “Ninjas”: “No Income, No Jobs, no Assets”. So everybody knew that there was fraud, and the bankers knew they would not go to jail, because Wall Street had become the main campaign contributor to the leading politicians, especially in the Democratic party. The Obama Administration came in basically as representatives of the bank fraudsters. And the fraud continues today. The crooks have taken over the banking system. It is hard for Europeans to realize that that this really has happened in America. The banks have turned into gangsters, which is why already in the 1930s President Roosevelt coined the word “banksters”.

I also heard the nice English sayings “Too big to fail” or “Too big to jail”…
But what has become of those 10 million households that ended up losing their homes to foreclosure? How are their economic and living conditions today? What has become of their houses? The economy has recovered…

Most of the houses that were foreclosed on have been bought out by hedge funds for all cash. In the wake of 2008, by 2009 and 2010 hedge funds were saying “If you have $5,000,000 to invest, we’re going to buy these houses that are being sold at distress prices. We’re going to buy foreclosed properties for all cash, because we can make a larger rate of return simply by renting them out.” So there has been a transfer of property from homeowners to the financial sector. The rate of home-ownership in America is dropping.

The economy itself has not recovered. All economic growth since 2008 has accrued only to the top 5% of the economy. 95% of the economy has been shrinking by about 3% per year… and continues to shrink, because the debts were kept in place. President Obama saved the banks and Wall Street instead of saving the economy.

That’s why we live in an “age of deception” as the sub-title of your latest book suggests, I guess?

“People have the idea that when house prices go up, somehow everybody’s getting richer. And it’s true that the entry to the middle class for the last hundred years has been to be able to own your own home…”

What is deceptive is the fact that attention is distracted away from how the real world works, and how unfair it is. Economics textbooks teach that the economy is in equilibrium and is balanced. But every economy in the world is polarizing between creditors and debtors. Wealth is being sucked up to the top of the economic pyramid mainly by bondholders and bankers. The textbooks act as if the economy operates on barter. Nobel prices for Paul Samuelson and his followers treat the economy as what they call the “real economy,” which is a fictitious economy that in theory would work without money or debt. But that isn’t the real economy at all. It is a parallel universe. So the textbooks talk about a parallel universe that might exist logically, but has very little to do with how the real economy works in today’s world.

If you had a picture you’d see me nodding all the time, because that’s what I also found out: if you look at the mathematics, it is polarizing all the time, it is de-stabilizing. Without government interference we’d have crash after crash… It is not under control anymore.

But you also suggest that there’s another factor that makes housing prices go up – and that’s property tax cuts. Why?

“Taxes were shifted off the Donald Trumps of the world and onto homeowners….”

Whatever the tax collector relinquishes leaves more rental income available to be paid to the banks. Commercial real estate investors have a motto: “Rent is for paying interest.” When buyers bid for an office building or a house, the buyer who wins is the one who is able to get the largest bank loan. And that person is the one who pays all the rent to the bank. The reason why commercial investors were willing to do this for so many decades is that they wanted to get the capital gain – which really was the inflation of real estate prices as a result of easier credit. But now that the economy is “loan up,” prospects for further capital gains are gone. So the prices are not rising much anymore. There is no reason to be borrowing. So the system is imploding.

So, how could we change the situation and make land a public utility?

There are two ways to do this. One way is to fully tax the land’s rental value. Public investment in infrastructure – roads, schools, parks, water and sewer systems – make a location more desirable. A subway line, like the Jubilee tube line in London, increases real estate prices all along the line. The resulting rise in rents increases prices for housing. This rental value could be taxed back by the community to pay for this infrastructure. Roads and subways, water and sewer systems could be financed by re-capturing the rental value of the land that this public investment creates. But that is not done. A free lunch is left in private hands.

The alternative is direct public ownership of the land, which would be leased out to whatever is deemed to be most socially desirable, keeping down the rental cost. In New York City, for instance, restaurants and small businesses are being forced out. They’re closing down because of the rising rents. The character of the economy is changing. It is getting rid of the bookstores, restaurants and low-profit enterprises. Either there should be a land tax, or public ownership of the land. Those are the alternatives. If you tax away the land’s rent, it would not be available to be paid to the banks. You could afford to cut taxes on labor. You could cut the income tax, and you could cut taxes on consumption. That would reduce the cost of living.

To me that’s pretty close to the position of Georgists on how to handle land, isn’t it?

I don’t like to mention Henry George, because he didn’t have a theory of land rent or of the role of the financial sector and debt creation. The idea of land tax came originally from the Physiocrats in France, François Quesnay, and then from Adam Smith, John Stuart Mill, and in America from Thorstein Veblen and Simon Patten. All of these economists clarified the analysis of land rent, who ended up with it, and how it should be taxed. In order to have a theory of how much land rent there is to tax, you need a value and price theory. Henry George’s value theory was quite confused. Worst of all, he spent the last two decades of his life fighting against socialists and labor reformers. He was an irascible journalist, not an economist.

The classical economists wrote everything you need to know about land rent and tax policy. That was the emphasis of Adam Smith, John Stuart Mill… all the classical economists. The purpose of their value and price theory was to isolate that part of the economy’s income that was unearned: economic rent, land rent, monopoly rent, and financial interest. I think it is necessary to put the discussion of tax policy and rent policy back in this classical economic context. Henry George was not part of that. He was simply a right-wing journalist whom libertarians use to promote neoliberal Thatcherite deregulation and anti-government ideology. In Germany, his followers were among the first to support the Nazi Party already in the early 1920s, for instance, Adolf Damaschke. Anti-Semitism also marked George’s leading American followers in the 1930s and ‚40s.

So I guess I have to go back a bit further in history, to read the original Physiocrats as well…

John Stuart Mill is good, Simon Patten is good, Thorstein Veblen is wonderful. Veblen was writing about the financialization of real estate in the 1920s in his Absentee Ownership. I recently edited a volume on him: Absentee Ownership and its Discontents (ISLET, Dresden, 2016).

Germany’s land tax reform seems to go in the wrong direction. Germany has to establish new rules for it’s “Grundsteuer” that in fact is a mingled tax on land and the buildings standing on it, based on outdated rateable values of 1964 (in the West) and 1935 (in the East). The current reform proposals of the federal states will maintain this improper mingling and intend a revenue neutral reform of this already very low tax. It brings about 11 billion Euro to the municipal authorities, but this is only 2% of the total German tax revenue, whereas wage tax and sales tax make up for 25% each. We need a complete tax shift, don’t we?

Germany is indeed suffering from rising housing prices. I think there are a number of reasons for this. One is that Germans have not had a real estate bubble like what occurred in the US or England. They did lose money in the stock market, and many decided simply to put their money in their own property. There is also a lot of foreign money coming into Germany to buy property, especially in Berlin.

The only way to keep housing prices down is to tax away the rise in the land value. If this is done, speculators are not going to buy. Only homeowners or commercial users will buy for themselves. You don’t want speculators or bank credit to push up prices. If Germany lets its housing prices rise, it is going to price its labor out of the market. It would lose its competitive advantage, because the largest expense in every wage-earner’s budget is the cost of housing. In Ricardo’s era it was food; today it is housing. So Germany should focus on how to keep its housing prices low.

I’d like to come back to the issue of interest once more. The English title of “Der Sektor” is “Killing the host – How Financial Parasites and Debt Bondage Destroy the Global Economy”. It’s much more coming to the point. It struck me that you mention John Brown. He wrote a book called “Parasitic wealth or Money Reform” in 1898. I came across his book some years ago and thought that he was somehow America’s Helmut Creutz of the 19th century. He was a supporter of Henry George, but in addition John Brown analyzed and criticized the interest money system and its redistribution of wealth. He said that labour is robbed of 33% of its earnings by the parasitic wealth with subtle and insidious methods, so that it’s not even suspected. Why does almost nobody know this John Brown?

John Brown’s book is interesting. It is somewhat like that of his contemporary Michael Flürscheim. Brown’s book was published by Charles Kerr, a Chicago cooperative that also published Marx’s Capital. So Brown was a part of the group of American reformers who became increasingly became Marxist in the 19^th and early 20^thcentury. Most of the books published by Kerr discussed finance and the exponential growth of debt.

The economist who wrote most clearly about how debt grew by its own mathematics was Marx in Vol. III of Capital and his Theories of Surplus Value . Most of these monetary writers were associated with Marxists and focused on the tendency of debt and finance to grow exponentially by purely mathematical laws, independently of the economy, not simply as a by-product of the economy as mainstream economics pretends.

So you recommend reading his book?

Sure, it is a good book, although only on one topic. Also good is Michael Flürscheim’s Clue to the Economic Labyrinth (1902). So is Vol. III of Capital.

Brown’s plan of reforms included the nationalization of banks and the establishment of a bank service charge in lieu of interest. The latter sounds remarkably up-to-date. In Germany the banks are raising charges because of the decrease in their interest margins. How is your view on the matter of declining interest rates?

Well, today declining interest rates are the aim of central bank Quantitative Easing. It hasn’t helped. The most important question to ask is: what are you going to make your loans for? Most lending at these declining interest rates has been parasitic and predatory. There’s a lot of corporate take-over lending to companies that borrow to buy other companies. There is an enormous amount of stock market credit that has helped bid up stock prices with low-interest credit and arbitrage. This has inflated asset prices for stocks, bonds and real estate. If the result of low interest rates is simply to inflate asset prices, the only way this can work is to have a heavy tax on capital gains, that is asset price gains. But in the US, England, and other countries there are very low taxes on capital gains, and so low interest rates simply make housing more expensive, and make stocks and buying a flow retirement income (in the form of stocks or bonds that yield dividends and interest) much more expensive.

I guess Brown is getting to the positive aspects of low interest also.

What Brown was talking about were the problems of finance. In the final analysis there is only one ultimate solution: to write down the debts. Nobody really wants to talk about debt cancellation, because they try to find a way to save the system. But it can’t be fixed so that debts can keep growing at compound rates ad infinitum. Any financial system tends to end in a crash. So the key question is how a society is NOT going not to pay debts that go bad. Will it let creditors foreclose, as has occurred in the US? Or are you going to write down the debts and wipe out this overgrowth of creditor claims? That’s the ultimate policy that every society has to face.

Very topical, the German Bundesbank sees the combination of low interest rates and a booming housing market as a dangerous cocktail for the banking sector. “The traffic lights have jumped to yellow or even to dark yellow”, Andreas Dombret said, after the Bundesbank had denied the problem in the last years by dismissing it as Germany’s legitimate catch-up effects. The residential property prices have gone up by 30% since 2010, in the major cities even by more than 60%. The share of real estate loans in the total credit portfolio is significantly rising. The mortgage loans of the households have increased in absolute terms as well as relative to their income. It’s only due to the low interest rates that the debt service has not increased yet. But the banks and savings companies are taking on the risk: the mortgages with terms of more than ten years have risen to more than 40% of the residential real estate loans. The interest-change risks lie with the banks. Don’t we have to face up to the truth that interest rates shouldn’t go up again?

What should be raised are taxes on the land, natural resource rent and monopoly rent. The aim should be to keep housing prices low instead of speculation. Land rent should serve as the tax base, as the classical economists said it should. Adam Smith, John Stuart Mill… all urged that the basis of the tax system should be real-estate and natural resource rent, not income taxes (which add to the cost of labor), the cost of labor and not value-added taxes (which increase consumer prices). So tax policy and debt write-downs today are basically the key to economic survival.

Banking should be a public utility. If you leave banking in the present hands, you’re leaving it in the hands of the kind of crooks that brought about the financial crisis of 2008.

Couldn’t the subprime-crisis have been prevented if the Fed had introduced negative interest rates in the 1990s?

No. The reason there was the crash was fraud and speculation. It was junk mortgages and the financialization of the economy. Pension funds and people’s savings were turned over to the financial sector, whose policy is short-term. It seeks gains mainly by speculation and asset price inflation. So the problem is the financial system. I think the Boeckler foundation has annual meetings in Berlin that focus on financialization and explain what the problem is.

Yes, that’s a big topic. The financial sector is interested, as you said, in short-term gains, but people who want to save for their retirement are interested in long-term stability – that is contradictory. Do you know the “Natural Economic Order by Free Land and Free Money” by Silvio Gesell?

It is not practical for today’s world, it is very abstract. The solution to the financial problem really has to be ultimately a debt write-down, and a shift to the tax system, as the classical economists talked about.

Gesell was also advocating the taxing of land. I think he had something in mind with bidding for the land, letting the market fix the prices.

He did not go beneath the surface to ask what kind of market do you want. Today, the market for real estate is a financialized market. As I said, the basic principle is that most rent is paid out as interest. The value of real estate is whatever a bank will lend against it. Unless you have a theory of finance and the overall economy, you really don’t have a theory of the market.

You are advocating a revival of classical economics. What did the classical economists understand by a free economy?

They all defined a free economy as one that is free from land rent, free from unearned income. Many also said that a free economy had to be free from private banking. They advocated full taxation of economic rent. Today’s idea of free market economics is the diametric opposite. In an Orwellian doublethink language, a free market now means an economy free for rent extractors, free for predators to make money, and essentially free for financial and corporate crime. The Obama Administration de-criminalized fraud. This has attracted the biggest criminals – and the wealthiest families – to the banking sector, because that’s where the money is. Crooks want to rob banks, and the best way to rob a bank is to own one. So criminals become bankers. You can look at Iceland, at HSBC, or at Citibank and Wells-Fargo in the news today. Their repeated lawbreaking and criminal activities have been shown to be endemic in the US. But nobody goes to jail. You can steal as much money as you want, and you’ll never go to jail if you’re a banker and pay off the political parties with campaign contribution. It’s much like drug dealers paying off crooked police forces. So crime is pouring into the financial system.

I think this is what’s going to cause a return to classical economics – the realization that you need government banks. Of course, government banks also can be corrupted, so you need some kind of checks and balances. What you need is an honest legal system. If you don’t have a legal system that throws crooks in jail, your economy is going to be transformed into something unpleasant. That’s what is happening today. I think that most Europeans don’t want to acknowledge that that’s what happened in America (USA). There is such an admiration of America that there is a hesitancy to see that it has been taken over by financial predators (a.k.a. “the market”).

We always hear that oligarchies are in the east, in Russia, but hardly anyone is calling America an oligarchy… although alternative media says that it’s just a few families that rule the country.

Yes.

Michael Hudson is the author of Killing the Host (published in e-format by CounterPunch Books and in print by Islet). His new book is J is For Junk Economics. He can be reached at mh@michael-hudson.com

The Cost of Resistance

Posted on January 14, 2018 by Reid Mukai

(Museum of the Revolution, León, Nicaragua)

By Chris Hedges

Source: TruthDig

Resistance entails suffering. It requires self-sacrifice. It accepts that we may be destroyed. It is not rational. It is not about the pursuit of happiness. It is about the pursuit of freedom. Resistance accepts that even if we fail, there is an inner freedom that comes with defiance, and perhaps this is the only freedom, and true happiness, we will ever know. To resist evil is the highest achievement of human life. It is the supreme act of love. It is to carry the cross, as the theologian James Cone reminds us, and to be acutely aware that what we are carrying is also what we will die upon.

Most of those who resist—Sitting Bull, Emma Goldman, Malcolm X and Martin Luther King Jr.—are defeated, at least in the cold calculation of the powerful. The final, and perhaps most important quality of resistance, as Cone writes, is that it “inverts the world’s value system.” Hope rises up out of defeat. Those who resist stand, regardless of the cost, with the crucified. This is their magnificence and their power.

The seductive inducements to conformity—money, fame, prizes, generous grants, huge book contracts, hefty lecture fees, important academic and political positions and a public platform—are scorned by those who resist. The rebel does not define success the way the elites define success. Those who resist refuse to kneel before the idols of mass culture and the power elites. They are not trying to get rich. They do not want to be part of the inner circle of the powerful. They accept that when you stand with the oppressed you get treated like the oppressed.

The inversion of the world’s value system makes freedom possible. Those who resist are free not because they have attained many things or high positions, but because they have so few needs. They sever the shackles used to keep most people enslaved. And this is why the elites fear them. The elites can crush them physically, but they cannot buy them off.

The power elites attempt to discredit those who resist. They force them to struggle to make an income. They push them to the margins of society. They write them out of the official narrative. They deny them the symbols of status. They use the compliant liberal class to paint them as unreasonable and utopian.

Resistance is not, fundamentally, political. It is cultural. It is about finding meaning and expression in the transcendent and the incongruities of life. Music, poetry, theater and art sustain resistance by giving expression to the nobility of rebellion against the overwhelming forces, what the ancient Greeks called fortuna, which can never ultimately be overcome. Art celebrates the freedom and dignity of those who defy malignant evil. Victory is not inevitable, or at least not victory as defined by the powerful. Yet in every act of rebellion we are free. It was the raw honesty of the blues, spirituals and work chants that made it possible for African-Americans to endure.

Power is a poison. It does not matter who wields it. The rebel, for this reason, is an eternal heretic. He or she will never fit into any system. The rebel stands with the powerless. There will always be powerless people. There will always be injustice. The rebel will always be an outsider.

Resistance requires eternal vigilance. The moment the powerful are no longer frightened, the moment the glare of the people is diverted and movements let down their guard, the moment the ruling elites are able to use propaganda and censorship to hide their aims, the gains made by resisters roll backward. We have been steadily stripped of everything that organized working men and women—who rose up in defiance and were purged, demonized and killed by the capitalist elites—achieved with the New Deal. The victories of African-Americans, who paid with their bodies and blood in making possible the Great Society and ending legal segregation, also have been reversed.

The corporate state makes no pretense of addressing social inequality or white supremacy. It practices only the politics of vengeance. It uses coercion, fear, violence, police terror and mass incarceration as social control. Our cells of resistance have to be rebuilt from scratch.

The corporate state, however, is in trouble. It has no credibility. All the promises of the “free market,” globalization and trickle-down economics have been exposed as a lie, an empty ideology used to satiate greed. The elites have no counterargument to their anti-capitalist and anti-imperialist critics. The attempt to blame the electoral insurgencies in the United States’ two ruling political parties on Russian interference, rather than massive social inequality—the worst in the industrialized world—is a desperate ploy. The courtiers in the corporate press are working feverishly, day and night, to distract us from reality. The moment the elites are forced to acknowledge social inequality as the root of our discontent is the moment they are forced to acknowledge their role in orchestrating this inequality. This terrifies them.

The U.S. government, subservient to corporate power, has become a burlesque. The last vestiges of the rule of law are evaporating. The kleptocrats are pillaging and looting like barbarian hordes. Programs instituted to protect the common good—public education, welfare and environmental regulations—are being dismantled. The bloated military, sucking the marrow out of the nation, is unassailable. Poverty is a nightmare for half the population. Poor people of color are gunned down with impunity in the streets. Our prison system, the world’s largest, is filled with the destitute. And presiding over the chaos and the dysfunction is a political P.T. Barnum, a president who, while we are being fleeced, offers up one bizarre distraction after another, much like Barnum’s Feejee mermaid—the head and torso of a monkey sewed to the back half of a fish.

There is no shortage of artists, intellectuals and writers, from Martin Buber and George Orwell to James Baldwin, who warned us that this dystopian era was fast approaching. But in our Disneyfied world of intoxicating and endless images, cult of the self and willful illiteracy, we did not listen. We will pay for our negligence.

Søren Kierkegaard argued that it was the separation of intellect from emotion, from empathy, that doomed Western civilization. The “soul” has no role in a technocratic society. The communal has been shattered. The concept of the common good has been obliterated. Greed is celebrated. The individual is a god. The celluloid image is reality. The artistic and intellectual forces that make transcendence and the communal possible are belittled or ignored. The basest lusts are celebrated as forms of identity and self-expression. Progress is defined exclusively by technological and material advancement. This creates a collective despair and anxiety that feeds and is fed by glitter, noise and false promises of consumer-culture idols. The despair grows ever-worse, but we never acknowledge our existential dread. As Kierkegaard understood, “the specific character of despair is precisely this: it is unaware of being despair.”

Those who resist are relentlessly self-critical. They ask the hard questions that mass culture, which promises an unachievable eternal youth, fame and financial success, deflects us from asking. What does it mean to be born? What does it mean to live? What does it mean to die? How do we live a life of meaning? What is justice? What is truth? What is beauty? What does our past say about our present? How do we defy radical evil?

We are in the grip of what Kierkegaard called “sickness unto death”—the numbing of the soul by despair that leads to moral and physical debasement. Those who are ruled by rational abstractions and an aloof intellectualism, Kierkegaard argued, are as depraved as those who succumb to hedonism, cravings for power, violence and predatory sexuality. We achieve salvation when we accept the impediments of the body and the soul, the limitations of being human, yet despite these limitations seek to do good. This burning honesty, which means we always exist on the cusp of despair, leaves us, in Kierkegaard’s words, in “fear and trembling.” We struggle not to be brutes while acknowledging we can never be angels. We must act and then ask for forgiveness. We must be able to see our own face in the face of the oppressor.

The theologian Paul Tillich did not use the word “sin” to mean an act of immorality. He, like Kierkegaard, defined sin as estrangement. For Tillich, it was our deepest existential dilemma. Sin was our separation from the forces that give us ultimate meaning and purpose in life. This separation fosters the alienation, anxiety, meaninglessness and despair that are preyed upon by mass culture. As long as we fold ourselves inward, embrace a perverted hyper-individualism that is defined by selfishness and narcissism, we will never overcome this estrangement. We will be separated from ourselves, from others and from the sacred.

Resistance is not only about battling the forces of darkness. It is about becoming a whole and complete human being. It is about overcoming estrangement. It is about the capacity to love. It is about honoring the sacred. It is about dignity. It is about sacrifice. It is about courage. It is about being free. Resistance is the pinnacle of human existence.

Gaius Publius: Defining Neoliberalism

Posted on January 11, 2018 by Reid Mukai

By Yves Smith

Source: Naked Capitalism

For years I’ve been using the term “neoliberalism” (or sometimes neo-liberalism*) and I’m always uncomfortable, since it sounds so academic. So I usually add one-phrase definitions and move on. For example, this from a recent piece on Puerto Rico:

If neoliberalism is the belief that the proper role of government is to enrich the rich — in Democratic circles they call it “wealth creation” to hide the recipients; Republicans are much more blatant — then the “shock doctrine” is its action plan.

That’s sounds pretty blunt, but it’s a true statement, even among academics. See this great interview (start at about 6:15) with Professor Philip Miroski of the University of Notre Dame on how modern neoliberals have come to see the role of government in society. It’s weedy but excellent.

I want to offer our readers a better description of neoliberalism though, yet not get into too many weeds. So consider these excerpts from a longer Guardian essay by the British writer George Monbiot. (My thanks to Naked Capitalism commenter nonclassical for the link and the idea for this piece.)

Neoliberalism — The Invisible Water the West Is Swimming In

We’ll start with Monbiot’s brief intro, just to set the scope of the problem:

Imagine if the people of the Soviet Union had never heard of communism. The ideology that dominates our lives has, for most of us, no name. Mention it in conversation and you’ll be rewarded with a shrug. Even if your listeners have heard the term before, they will struggle to define it. Neoliberalism: do you know what it is?

Ask people to define “neoliberalism,” even if they’ve heard of it, and almost no one can. Yet the comparison of our governing ideology to that of the Soviet Union’s is a good one — like “communism,” or the Soviet Union’s version of it, neoliberalism defines and controls almost everything our government does, no matter which party is in office.

The Birth of Neoliberalism

What is neoliberalism and where did it come from? Monbiot writes:

The term neoliberalism was coined at a meeting in Paris in 1938. Among the delegates were two men who came to define the ideology, Ludwig von Mises and Friedrich Hayek. Both exiles from Austria, they saw social democracy, exemplified by Franklin Roosevelt’s New Deal and the gradual development of Britain’s welfare state, as manifestations of a collectivism that occupied the same spectrum as nazism and communism.

Neoliberalism is an explicit reaction to Franklin Roosevelt and the welfare state, which by a quirk of history was called “liberalism” at the time, even though, in the nineteenth century, “liberalism” had roughly the same meaning that “neoliberalism” has today. In other words, “FDR liberalism” is in many ways the opposite of classical “liberalism,” which meant “liberty (freedom) from government,” and a quirk of history has confused these terms.

Back to Monbiot and Hayek:

In The Road to Serfdom, published in 1944, Hayek argued that government planning, by crushing individualism, would lead inexorably to totalitarian control. Like Mises’s book Bureaucracy, The Road to Serfdom was widely read. It came to the attention of some very wealthy people, who saw in the philosophy an opportunity to free themselves from regulation and tax. When, in 1947, Hayek founded the first organisation that would spread the doctrine of neoliberalism – the Mont Pelerin Society – it was supported financially by millionaires and their foundations.

With their help, he began to create what Daniel Stedman Jones describes in Masters of the Universe as “a kind of neoliberal international” [a term modeled on “the Communist International]: a transatlantic network of academics, businessmen, journalists and activists. The movement’s rich backers funded a series of thinktanks which would refine and promote the ideology. Among them were the American Enterprise Institute, the Heritage Foundation, the Cato Institute, the Institute of Economic Affairs, the Centre for Policy Studies and the Adam Smith Institute. They also financed academic positions and departments, particularly at the universities of Chicago and Virginia.

As it evolved, neoliberalism became more strident. Hayek’s view that governments should regulate competition to prevent monopolies from forming gave way – among American apostles such as Milton Friedman – to the belief that monopoly power could be seen as a reward for efficiency.

Note the mention of Milton Friedman above. Neoliberalism is a bipartisan ideology, not just a Clintonist-Obamist one.

Democrats, Republicans and Neoliberalism

As Monbiot explains, for a while neoliberalism “lost its name” and was more or less a fringe ideology in a world still dominated by the ideas of John Maynard Keynes and Keynesian economics. When neoliberalism later came back strong in the Republican Party, it wasn’t called “neoliberalism” but “Milton Friedman free market conservativism,” or something similar.

Only when Bill Clinton and his Democratic Party allies adopted it in the 1980s did the term “neoliberal” re-emerge in public discourse.

[I]n the 1970s, when Keynesian policies began to fall apart and economic crises struck on both sides of the Atlantic, neoliberal ideas began to enter the mainstream. As Friedman remarked, “when the time came that you had to change … there was an alternative ready there to be picked up”. With the help of sympathetic journalists and political advisers, elements of neoliberalism, especially its prescriptions for monetary policy, were adopted by Jimmy Carter’s administration in the US and Jim Callaghan’s government in Britain.

After Margaret Thatcher and Ronald Reagan took power, the rest of the package soon followed: massive tax cuts for the rich, the crushing of trade unions, deregulation, privatisation, outsourcing and competition in public services. Through the IMF, the World Bank, the Maastricht treaty and the World Trade Organisation, neoliberal policies were imposed – often without democratic consent – on much of the world. Most remarkable was its adoption among parties that once belonged to the left: Labour and the Democrats, for example. [emphasis added]

Note the role of Jimmy Carter and start of deregulation in the late 1970s. For that reason, many consider Jimmy Carter to be the “proto-neoliberal,” both for the nation and the Democratic Party.

Neoliberalism — “Just Deserts” for Predators and Prey

What makes “neoliberalism” or “free market conservatism” such a radical — and destructive — ideology? It reduces all human activity to economic competition. It creates and glorifies, in other words, a world of predators and prey, a world like the one we live in as today:

Neoliberalism sees competition as the defining characteristic of human relations. It redefines citizens as consumers, whose democratic choices are best exercised by buying and selling, a process that rewards merit and punishes inefficiency. It maintains that “the market” delivers benefits that could never be achieved by planning.

In a world where competition is right and good, a world in which the “market” is the defining metaphor for human activity, all social ties are broken, the individual is an atom left to survive as an individual only, the strongest relentlessly consume the weakest — and that’s as it should be. (It’s easy to imagine how the apex predators of our social order would be attracted to this, and insist on it with force.

Thus the bipartisan world we live in today. Under a neoliberal regime, everyone gets what they deserve. Big fish deserve their meal. Little fish deserve their death. And government sets the table for the feast.

The Role of Government in a Neoliberal World

Since for neoliberals, the “market” is the source of all that is good in human interaction, non-interference in “the market” is rule one for government.

Over time that has changed, however, as winners have grown more successful and their control of government more absolute. The proper role of government in today’s neoliberal regime is not merely to allow the market to operate for the benefit of wealth-holders; it’s to make sure the market operates for the benefit of wealth-holders.

In other words, the role of government is to intervene in the market on behalf of wealth-holders, or, as I put it more colloquially, to proactively enrich the rich. The interview with Professor Mirowski, as I noted above, makes that same point, but from an academic standpoint.

From this it should be also clear that until we free ourselves of rule by neoliberals and the pain and misery they create, we’ll always be victims to the predatory giants — the very very wealthy and the corporations they use as power-extenders — those, in other words, who want merely to own everything else in the world.

This means we need to free ourselves from neoliberals in both parties, not just the ones in current seats of power. But that idea seems to have been excised from most discussions these days. Fair warning though. If the Age of Trump ends with the Restoration of Mainstream Democrats, we’ll have won almost nothing at all.

____________

* I sometimes spell “neo-liberalism” with the hyphen to suggest the following connection: Neo-liberalism is “new liberalism,” and has the same relationship to FDR liberalism as New Labour has to Labour — the two are exactly opposite.

The Age of Ego

Posted on January 7, 2018 by Reid Mukai

By Dan Corjescu

Source: CounterPunch

Hegel’s conception of history taught us that the meaning of history was the liberation of the individual through his or her recognition as a fully autonomous rational person.

Indeed, since the French Revolution, the Age of the Individual has expanded apace even if not always in a straight line.

Today, more than ever, our politics, economics, culture, and society are all, at least nominally, directed at the well being and full recognition of each and everyone of us.

If this is so, then why are so many people still frustrated and unhappy in their daily life?

In part, this state of affairs might be due to our neglecting of the second part of the Hegelian equation: the individual’s place and relationship to others mediated by the State.

The State, according to Hegel, is the representation of universal rationality. Put in another way, the state is the structure which allows individuals to be recognized as full individuals through their participation in it. Each and every individual has a role to play within the state. The fulfillment of that role satisfies our need for recognizing one another and the constant realization that we are not and cannot be just for ourselves but for each other.

A culture, such as ours, which celebrates the socially untethered individual is propagating a fundamental lie. Individuals cannot be fully realized without the cooperation of all other individuals; an essential activity which, in the modern world, is mediated by the state.

Yet, what is the state in the modern world? What has it become? Is it a universalist, rationalist tool for the realization of the greater good?

Certainly not.

Today, the modern state is a tool of elites to ensure their total domination and power over all other classes and groups. It does not matter if the state calls itself “democratic” or a “one party state”. In effect, all states today are “one party” states controlled by their respective elites who are often tied to one another transnationally. We are, all of us, under the thumb of a new global elite who dictates the nature of our social being. “Global Empire” is not an all too fanciful term for the present situation.

And like the Roman Empire before it, it is not a coincidence that many people are turning spiritually inward toward personalistic philosophies of self-help and care. Ironically, even the philosophy of ancient Stoicism is making somewhat of a comeback.

None of this is surprising.

The individual cannot be truly satisfied if he or she is not a participating and consequent member of a polity; of a state. The elites of this world have carefully and calculatedly castrated our social and economic potentialities to do so.

The root of our gnawing unhappiness in our brave new world is simply this: consequential inter-personal participation in the sphere of the political has been vanishing for decades. The ability to effect collective change from below has been diminishing. True collectivity has been consistently denied.

The disassociation of the individual from the polity; in effect the non-existence anywhere of true democracy has led to a hollowing out of the human personality. It is only in concrete social action that we materialize fully as human beings. It is as members of a community who are able to truly guide that community that we find a deep human purpose.

Once again, recalling Hegel and the Greeks before him, it is not enough to exist as economic man symbolically feigning electoral freedom every two or four years ; one must directly participate in the polis.

Reviving the Spirit of Existential Rebellion in a World of Propaganda, Lies, and Self Deception

Posted on December 31, 2017 by Reid Mukai

By Edward Curtin

Source: Dissident Voice

Search for nothing anymore, nothing except truth.
Be very still and try to get at the truth.
And the first question to ask yourself is:
How great a liar am I?
— D. H. Lawrence, Search For Truth

Like existential freedom, honesty and truth-seeking demand a perpetually renewed commitment. No one ever fully arrives, and all of us are blown off course on the journey. Even when we think we have reached our destination, we are often startled by the enigma of arrival, and must set sail again. We are all in the same boat. The search for truth is a process, an experiment, an essay – a trying without end.

Yet surely it is not an exaggeration to say that most people are liars and self-deceivers. Honesty, while touted as a virtue, is practiced far less than it is praised. There is almost nothing that people are less honest about than their attitudes toward honesty. Few think of themselves as dishonest, and even to hint that someone is so is received as a great insult that usually elicits an angry response. So most people follow the advice of the character Jean-Baptiste Clamence from Albert Camus’ The Fall: “Promise to tell the truth and then lie as best you can.” In that way you satisfy your own and others’ secret desires for deception and play-acting, and other people will love you for it.

However, it is widely accepted that political leaders and the mass media lie and dissemble regularly, which, of course, they do. That is their job in an oligarchy. Today we are subjected to almost total, unrelenting media and government propaganda. Depending on their political leanings, people direct their anger toward politicians of parties they oppose and media they believe slant their coverage to favor the opposition. Trump is a liar. No, Obama is a liar. And Hillary Clinton. No, Fox News. Ridiculous! – it’s CNN or NBC. And so on and so forth in this theatre of the absurd that plays out within a megaplex of mainstream media (MSM) propaganda, where there are many shows but one producer, whose overall aim is to engineer the consent of all who enter while setting the different audiences against each other. It is a very successful charade that evokes name-calling from all quarters.

In other words, for many people their opponents lie, as do other people, but not them. This is as true in personal as well as public life. Here the personal and the political converge, despite protestations to the contrary.

Sartre and Bad Faith

Lying and dissembling are ubiquitous. Being lied to by the MSM is mirrored in people’s personal lives. People lie and want to be deceived. They choose to play dumb, to avoid a confrontation with truth. They want to be nice (Latin, nescire, not to know, to be ignorant) and to be liked. They want to tuck themselves into a safe social and cultural framework where they imagine they will be safe. They choose to live in what Jean Paul Sartre called bad faith (mauvaise foi). He put it as follows:

In bad faith it is from myself that I am hiding the truth. But with this “lie” to myself, the one to whom the lie is told and the one who lies are one and the same person, which means that I must know in my capacity as deceiver the truth which is hidden from me in my capacity as the one deceived.

Such bad faith allows people to fabricate a second act of bad faith: that they are not responsible for their ignorance of the truths behind the government’s and corporate media’s lies and propaganda, even as the shades of the prison house ominously close around us and the world edges toward global death that could arrive in an instant with nuclear war or limp along for years of increasing suffering.

Those of us who write about the U.S.-led demented wars and provocations around the world and the complementary death of democracy at home are constantly flabbergasted and discouraged by the willed ignorance of so many Americans. For while the mainstream media does the bidding of the power elite, there is ample alternative news and analyses available on the internet from fine journalists and writers committed to truth, not propaganda. There is actually far too much truth available, which poses another problem. But it doesn’t take a genius to learn how to research important issues and to learn how to distinguish between bogus and genuine information. It takes a bit of effort, and, more importantly, the desire to compare multiple, opposing viewpoints and untangle the webs the Web weaves. We are awash in information (and disinformation) and both good and bad reporting, but it is still available to the caring inquirer.

The problem is the will to know. But why, why the refusal to investigate and question; why the indifference? Stupidity? Okay, there is that. Ignorance? That too. Willful ignorance, ditto. Laziness, indeed. Careerism and ideology? For certain. Upton Sinclair put it mildly when he said, “It is difficult to get a man to understand something, when his salary depends on not understanding it.” Difficult? No, it’s almost impossible.

But then there are many very intelligent people who have nothing to lose and yet adamantly refuse to entertain alternative possibilities to the reigning orthodoxies that have them in their grip.

As do many others, I know many such people who will yes me to death and then never fully research issues. They will remain in limbo or else wink to themselves that what may be true couldn’t be true. They close down. This is a great dilemma and frustration faced by those who seek to convince people to take an active part in understanding what is really going on in the world today, especially as the United States wages war across the globe, threatens Russia and China, among others, as it expands and modernizes its nuclear weapons capabilities.

Jacques Ellul on Propaganda

The French sociologist, Jacques Ellul, has argued convincingly that modern propaganda in a technological mass society is more complicated than the state and media lying and deceiving the population. He argues that propaganda meets certain needs of modern people and therefore the process of deceit is reciprocal. The modern person feels lost, powerless, and empty. Ellul says, “He realizes that he depends on decisions over which he has no control, and that realization drives him to despair.” But he can’t live in despair; desires that life be meaningful; and wants to feel he lives in a world that makes sense. He wants to participate and have opinions that suggest he grasps the flow of events. He doesn’t so much want information, but value judgments and preconceived positions that provide him with a framework for living. Ellul wrote the following in 1965 in his classic book Propaganda:

The majority prefers expressing stupidities to not expressing any opinion: this gives them the feeling of participation. For they need simple thoughts, elementary explanations, a ‘key’ that will permit them to take a position, and even readymade opinions….The man who keeps himself informed needs a framework….the more complicated the problems are, the more simple the explanations must be; the more fragmented the canvas, the simpler the pattern; the more difficult the question, the more all-embracing the solution; the more menacing the reduction of his own worth, the greater the need for boosting his ego. All this propaganda – and only propaganda – can give him.

Another way of saying this is that people want to be provided with myths to direct them to the “truth.” But such so-called truth has been preconceived within the overarching myth provided by propaganda, and while it satisfies people’s emotional need for coherence, it also allows them to think of themselves as free individuals arriving at their own conclusions, which is a basic function of good propaganda. In today’s mass technological society, it is essential that people be convinced that they are free-thinking individuals acting in good faith. Then they can feel good about themselves as they lie and act in bad faith.

The Spirit of Existential Rebellion

In the wake of World War II and the complete shattering of any illusion about the human capacity for evil, there arose in Western Europe, particularly in France and Germany a “philosophy” called existentialism. More an attitude towards life rather than a formal philosophy, and with its roots going back at least as far as Kierkegaard and Nietzsche in the 19th century, existentialism emphasized individual freedom, authenticity, personal responsibility, and the need to confront the unimaginable horrors of World War II and the absurd situation in which human beings had created nuclear weapons that could obliterate the planet in a flash, as the United States had used to incinerate Hiroshima and Nagasaki. How to respond to the birth of global state nuclear terrorism became a task for the existential imagination.

The traditional belief that an all-powerful God could bring the world to an end had now been replaced by the idolatry of nuclear madmen who had hubristically violated the limits that the Greeks had long ago warned us not to exceed by making themselves into gods. Having unleashed the Furies, these false gods have created a world in which the droning sound of nuclear intercontinental missiles haunts the secret nightmares of the world. We have been living with this unspeakable and unspoken truth for more than seventy years.

Opposition to the nuclear standoff and its accompanying proxy wars has waxed and waned over the years. Dissident minorities and sometimes many millions across the globe have mobilized to oppose not only nuclear weapons but the war makers who have waged continuous wars of aggression throughout the world and have created the national-security warfare state, seemingly intent on world destruction.

However, today the sound of silence fills the empty streets, as passivity has overtaken those who oppose the growing nuclear threat and the ongoing U.S.- led wars throughout the world. The spirit of resistance has gone to sleep. The German writer Karl Kraus understood this in the days of Hitler’s rise during the 1930s when he said, “The real end of the world is the destruction of the spirit; the other kind depends on the insignificant attempt to see whether after such destruction the world can go on.”

We need to somehow resurrect the spirit of resistance that will bring together millions of people across the world who oppose the death dealers. I think it is time to recall the power and possibility implicit in the spirit of existential thought.

The existential emphasis on individual responsibility and authentic truth telling in the works of various writers, including Jean Paul Sartre, Simone de Beauvoir, Gabriel Marcel, and Albert Camus (who didn’t consider himself an existentialist but whose work emphasized many of the same themes), inspired large numbers of people in the late’ 50s into the mid-to-late ’60s, including the international anti-nuclear movement and young American anti-war activists. Contrary to popular understanding, existentialism is not about navel gazing and hopelessness, but is about responding freely and authentically to the situations people find themselves in, which today, is the end- time that is a time when the fate of the world lies in the hands of nuclear madmen.

But by the end of the 1960s this existential spirit of rebellion started to dissipate. Academic gibberish replaced this rebellious spirit with the introduction of ideas, such as post structuralism, leading eventually to postmodernist nonsense that not only refuted the need for personal responsibility, but eliminated the person altogether. By 1999 a leading exponent of postmodern rhetoric, Jean Baudrillard, was dismissing everything the existentialists emphasized. He said, “No one needs this kind of ‘existential garb’ any more. Who cares about freedom, bad faith, and authenticity today?”

If such words were just the ranting of an intellectual lost in a fantasy world of abstractions, that would be one thing. But they are a form of propaganda echoed throughout western societies, particularly the United States, through the repeated emphases over the decades that people are not free but are the products of biological brain processes, etc. Deterministic memes have become dominant in cultural mind control. Such postmodern abstractions have denied everything that makes possible the fight against nuclear annihilation and the warfare states’ domination of western Europe and NATO, led by the United States.

The self is an illusion. Freedom is an illusion. Responsibility is an illusion. Guilt is an illusion. Everything is an illusion. A kaleidoscopic mad world in which no on exists and nothing really matters. This deterministic and nihilistic message has become the main current in western cultural propaganda since the late 1960s and has reached a crescendo in the present day. It is responsible for the growth of passivity and denial that dominates contemporary public consciousness. It underlies the refusal of so many otherwise intelligent people to engage themselves in the search for truth that would lead to their joining forces with others to create a mass anti-war movement.

While many people think of existentialism as only an atheistic approach to existence, this is incorrect. There are atheist and agnostic existentialists, yes, but existentialism’s core emphases have deep roots in the various religious traditions, such as Judaism and Christianity, etc. That is because freedom, authenticity, truth telling, and social responsibility, while often buried within the institutional structures of these faiths, lie at their core. So if we are going to resurrect the spirit of rebellion necessary to transform today’s world, we need to renew the virtues that the existentialists emphasize.

The first step in this process is to ask with D.H.Lawrence the question, “How great a liar am I?”

Anti-war activist and author of the indispensable book JFK and the Unspeakable: Why He Died and Why It Matters, James Douglass, made an intriguing suggestion in another book, Lightning East To West, when he said:

The exact opposite of the H bomb’s destructive purpose, but psychic equivalent of its energy, is the Kingdom of Reality which would be the final victory of Truth in history –a force of truth and love powerful enough to fuse billions of individual psyches into a global realization of essential oneness. There is no reason why the same psyche which, when turned outward, was able to create the condition for a self-acting force of over 100 million degrees of heat, thus realizing an inconceivable thermonuclear fusion, cannot someday turn sufficiently inward to create the condition for an equally inconceivable (but nature balancing) fusion in its own psychic or spiritual reality. An end-time can also be a beginning. Gandhi said: ‘When the practice of the law becomes universal, God will reign on the earth as God does in heaven. Earth and heaven are in us. We know the earth, and we are strangers to the heaven within us.

While Gandhi’s words are couched in religious language, their meaning can resonate with secular-minded people as well. These words speak to the power implicit in the human spirit as a whole. That power begins and builds when people of all persuasions are convinced that they must freely pursue the truth at all costs. As the poet Theodore Roethke wrote, “In a dark time, the eye begins to see.”

In these very dark times – these end- times created by nuclear weapons – seeing the truth is dependent on the will to truth, and the will to truth only arises when people believe they are free to alter the circumstances in which they find themselves. This belief in freedom is at the core of all existential thought and is why we need to resurrect it today.

Jesus Was Born in a Police State

Posted on December 25, 2017 by Reid Mukai

By John W. Whitehead

Source: The Rutherford Institute

“Jesus is too much for us. The church’s later treatment of the gospels is one long effort to rescue Jesus from ‘extremism.’”—author Gary Wills, What Jesus Meant

The Christmas narrative of a baby born in a manger is a familiar one.

The Roman Empire, a police state in its own right, had ordered that a census be conducted. Joseph and his pregnant wife Mary traveled to the little town of Bethlehem so that they could be counted. There being no room for the couple at any of the inns, they stayed in a stable, where Mary gave birth to a baby boy, Jesus.

Unfortunately, Jesus was born into a police state not unlike the growing menace of the American police state. When he grew up, he had powerful, profound things to say—things that would change how we view people, alter government policies and change the world. “Blessed are the merciful,” “Blessed are the peacemakers,” and “Love your enemies” are just a few examples of his most profound and revolutionary teachings.

When confronted by those in authority, Jesus did not shy away from speaking truth to power. Indeed, his teachings undermined the political and religious establishment of his day. It cost him his life. He was eventually crucified as a warning to others not to challenge the powers-that-be.

Yet what if Jesus, the revered preacher, teacher, radical and prophet, had been born 2,000 years later? What if, instead of being born into the Roman police state, he had been born and raised in the American police state?

Consider the following if you will.

Had Jesus been born in the era of the America police state, rather than traveling to Bethlehem for a census, Jesus’ parents would have been mailed a 28-page American Community Survey, a mandatory government questionnaire documenting their habits, household inhabitants, work schedule, how many toilets were in their home, etc. The penalty for not responding to this invasive survey can go as high as $5,000.

Instead of being born in a manger, Jesus might have been born at home. Rather than wise men and shepherds bringing gifts, however, the baby’s parents might have been forced to ward off visits from state social workers intent on prosecuting them for the home birth. One couple in Washington had all three of their children removed after social services objected to the two youngest being birthed in an unassisted home delivery.

Had Jesus been born in a hospital, his blood and DNA would have been taken without his parents’ knowledge or consent and entered into a government biobank. While most states require newborn screening, a growing number are holding onto that genetic material long-term for research, analysis and purposes yet to be disclosed.

Then again, had Jesus’ parents been undocumented immigrants, they and the newborn baby might have been shuffled to a profit-driven, private prison for illegals where they would have been turned into cheap, forced laborers for corporations such as Starbucks, Microsoft, Walmart, and Victoria’s Secret. There’s quite a lot of money to be made from imprisoning immigrants, especially when taxpayers are footing the bill.

From the time he was old enough to attend school, Jesus would have been drilled in lessons of compliance and obedience to government authorities, while learning little about his own rights. Had he been daring enough to speak out against injustice while still in school, he might have found himself tasered or beaten by a school resource officer, or at the very least suspended under a school zero tolerance policy that punishes minor infractions as harshly as more serious offenses.

Had Jesus disappeared for a few hours let alone days as a 12-year-old, his parents would have been handcuffed, arrested and jailed for parental negligence. Parents across the country have been arrested for far less “offenses” such as allowing their children to walk to the park unaccompanied and play in their front yard alone.

Rather than disappearing from the history books from his early teenaged years to adulthood, Jesus’ movements and personal data—including his biometrics—would have been documented, tracked, monitored and filed by governmental agencies and corporations such as Google and Microsoft. Incredibly, 95 percent of school districts share their student records with outside companies that are contracted to manage data, which they then use to market products to us.

From the moment Jesus made contact with an “extremist” such as John the Baptist, he would have been flagged for surveillance because of his association with a prominent activist, peaceful or otherwise. Since 9/11, the FBI has actively carried out surveillance and intelligence-gathering operations on a broad range of activist groups, from animal rights groups to poverty relief, anti-war groups and other such “extremist” organizations.

Jesus’ anti-government views would certainly have resulted in him being labeled a domestic extremist. Law enforcement agencies are being trained to recognize signs of anti-government extremism during interactions with potential extremists who share a “belief in the approaching collapse of government and the economy.”

While traveling from community to community, Jesus might have been reported to government officials as “suspicious” under the Department of Homeland Security’s “See Something, Say Something” programs. Many states, including New York, are providing individuals with phone apps that allow them to take photos of suspicious activity and report them to their state Intelligence Center, where they are reviewed and forwarded to law-enforcement agencies.

Rather than being permitted to live as an itinerant preacher, Jesus might have found himself threatened with arrest for daring to live off the grid or sleeping outside. In fact, the number of cities that have resorted to criminalizing homelessness by enacting bans on camping, sleeping in vehicles, loitering and begging in public has doubled.

Viewed by the government as a dissident and a potential threat to its power, Jesus might have had government spies planted among his followers to monitor his activities, report on his movements, and entrap him into breaking the law. Such Judases today—called informants—often receive hefty paychecks from the government for their treachery.

Had Jesus used the internet to spread his radical message of peace and love, he might have found his blog posts infiltrated by government spies attempting to undermine his integrity, discredit him or plant incriminating information online about him. At the very least, he would have had his website hacked and his email monitored.

Had Jesus attempted to feed large crowds of people, he would have been threatened with arrest for violating various ordinances prohibiting the distribution of food without a permit. Florida officials arrested a 90-year-old man for feeding the homeless on a public beach.

Had Jesus spoken publicly about his 40 days in the desert and his conversations with the devil, he might have been labeled mentally ill and detained in a psych ward against his will for a mandatory involuntary psychiatric hold with no access to family or friends. One Virginia man was arrested, strip searched, handcuffed to a table, diagnosed as having “mental health issues,” and locked up for five days in a mental health facility against his will apparently because of his slurred speech and unsteady gait.

Without a doubt, had Jesus attempted to overturn tables in a Jewish temple and rage against the materialism of religious institutions, he would have been charged with a hate crime. Currently, 45 states and the federal government have hate crime laws on the books.

Had anyone reported Jesus to the police as being potentially dangerous, he might have found himself confronted—and killed—by police officers for whom any perceived act of non-compliance (a twitch, a question, a frown) can result in them shooting first and asking questions later. Daniel Shaver, 26 years old, was crawling on the floor, sobbing and begging for his life, and had just reached down to pull up his shorts when a police officer opened fire on him with an AR-15 rifle. “If you move, we’re going to consider that a threat and we are going to deal with it and you may not survive it,” the cop shouted at Shaver before his partner started shooting.

Rather than having armed guards capture Jesus in a public place, government officials would have ordered that a SWAT team carry out a raid on Jesus and his followers, complete with flash-bang grenades and military equipment. There are upwards of 80,000 such SWAT team raids carried out every year, many on unsuspecting Americans who have no defense against such government invaders, even when such raids are done in error.

Instead of being detained by Roman guards, Jesus might have been made to “disappear” into a secret government detention center where he would have been interrogated, tortured and subjected to all manner of abuses. Chicago police “disappeared” more than 7,000 people into a secret, off-the-books interrogation warehouse at Homan Square.

Charged with treason and labeled a domestic terrorist, Jesus might have been sentenced to a life-term in a private prison where he would have been forced to provide slave labor for corporations or put to death by way of the electric chair or a lethal mixture of drugs.

Either way, whether Jesus had been born in our modern age or his own, he still would have died at the hands of a police state.

Indeed, as I show in my book Battlefield America: The War on the American People, what Jesus and other activists suffered in their day is happening to those who choose to speak truth to power today.

For those who celebrate Christmas as a season of miracles, it is indeed a time for joy and thanksgiving. Yet it should also be a time of reckoning, re-awakening and re-commitment to making this world a better place for all humanity.

Remember, what happened on that starry night in Bethlehem is only part of the story. That baby in the manger grew up to be a man who did not turn away from evil but instead spoke out against it, and we must do no less.

Thus, we are faced with a choice: remain silent in the face of evil or speak out against it. As Nobel Prize-winning author Albert Camus proclaimed:

What the world expects of Christians is that Christians should speak out, loud and clear, and that they should voice their condemnation in such a way that never a doubt, never the slightest doubt, could rise in the heart of the simplest man. That they should get away from abstraction and confront the blood-stained face history has taken on today. The grouping we need is a grouping of men resolved to speak out clearly and to pay up personally.

Seeking Happiness Beyond Neo-Liberal Consumerism

Posted on December 24, 2017 by Reid Mukai

(Photo by Chris Hondros/Getty Images)

By Graham Peebles

Source: Dissident Voice

Irrespective of nationality, religion, race, or gender; whether stinking rich, desperately poor, or somewhere in between, happiness is the one thing everyone is seeking – consciously or not.

The architects of the socio-economic system in which we live have devised a system that promises to satisfy this yearning. But instead of building a society at ease with itself, full of peaceful, happy people, collective discontent is fed, resulting in a range of mental health issues, and in some cases, suicide.

Happiness, according to the duplicitous devotees of Neo-Liberalism, is to be found in the homogenous shopping centers of the world, the sterile holiday resorts and brash casinos. In things, in products and services that stimulate and excite: Happiness in this perverse paradigm has been replaced by pleasure, love exchanged for desire, choice substituted for freedom.

Echoes of happiness

Happiness that lasts is what we yearn for, not a transient state in which one feels the tingle of happiness for a moment or so, only to see it evaporate as the source of our happiness loses its appeal, or is exhausted — the holiday comes to an end, a relationship breaks up, the gamble doesn’t pay off, a new I-Phone or handbag hits the high street making the old one redundant etc., etc. We sense that a state of lasting happiness is possible but know not where it is or how to find it. The mistake commonly made, and one we are constantly encouraged to make, is to search for happiness within the sensory world where all experiences, pleasant or unpleasant, are facile and transient. The inevitable consequence of such shallow encounters with happiness is discontent and frustration.

Despite being repeatedly confronted with disappointment, instead of refraining from this never-ending quest, the searcher becomes increasingly desperate; a new relationship may be sought, a change of job or new home, more shopping outings, dinners planned, alcohol and drugs taken and so on into the darker reaches of sensory satisfaction and hedonistic indulgence.

Of course, it is important to enjoy life, and, yes, something resembling happiness is experienced on these excursions, but it is a happiness dependent on something, other people, and on certain elements being in place: take these away and the “happiness” very quickly evaporates. Such happiness is a mere echo of ‘True Happiness’, and one that carries with it conflict, fear and anxiety; this taste of happiness, functioning via the desire principle and the medium of the senses is relentlessly stoked by the exponents of neo-liberal idealism.

The success of their divisive project; i.e., profitability, growth, development, progress, call it what you will, is totally contingent on consumerism and the act of consuming relies on, and is the result of, perpetual desire. To their utter shame, despite having a responsibility to create the conditions in which ‘True Happiness’, can be experienced, most, if not all governments collude with corporate man/woman to promote the unhealthy, materialistic values that are the source of unhappiness.

Desire is constantly agitated through advertising, television, film and print media; fantastical, sentimental, idealized images, of not just where happiness lies, but what love looks like, are pumped around the world every minute of every day. The aim of this extravagant pantomime is to manipulate people into believing they need the stuff that the corporate-state is selling in order to be happy. But happiness cannot be found within the world of sensations, pleasure yes, but not happiness, and pleasure will never fill the internal void that exists and is perpetuated through this movement into materiality. Pleasure is not happiness, nor does it bring lasting happiness, at best it creates a false sense of relief from unhappiness and inner conflict, a momentary escape before dissatisfaction and desire bubble up again.

Cycles of discontent

Nothing but discontent is to be found within this endless cycle of desire, temporary satisfaction, and continued longing. It is an insatiable, inherently painful pattern that moves the ‘Seeker of Happiness’ further and further away from the treasure he or she is searching for, creating disharmony and conflict, for the individual and society. Add to this polluted landscape competition and inequality and a cocktail of division and chaos emerges: Competition between individuals and nations separates and divides, working against humanity’s natural inclination towards cooperation, sharing and tolerance; qualities that were crucial in the survival of early man.

Competition fosters ideas of superiority and inferiority, and together with conformity, an image of ‘success’ and ‘failure’, of beauty, and what it means to be a man or a woman, particularly a young man or young, is projected and thrust into the minds of everyone from birth. One of the effects of this is the tendency towards comparison, leading to personal dissatisfaction (with myriad symptoms from self-harming to addiction and depression), and the desire, or pressure, to conform to the presented ideal.

At the root of these interconnected patterns of discontent and misery, lies desire. Desire not just for pleasure, but desire for things to be other than they are; it is this constant movement of desire that creates unhappiness and deep dissatisfaction. If desire is the obstacle to happiness, then all desire needs to be negated, including the desire for happiness. Perhaps the question to be addressed then is not what will bring lasting happiness, but how to be free of unhappiness and discontent.

In ancient Greece, where life was hard and happiness was widely believed to be reserved for those rare individuals whom the Gods favoured, Socrates (470 BC – 399 BC) proposed that happiness could be attained by everyone by controlling their hedonistic desires, turning their attention towards the soul and by living a moral life. His view finds its root in the teachings of the Buddha, who, almost 100 years earlier had made clear in the Second Noble Truth, that far from bringing happiness, desire is, in fact, the cause of all suffering, and further, that freedom from suffering and unhappiness is brought about when desire is overcome.

True Happiness is an aspect of our natural self. It will not be found within the world of pleasure and material satisfaction, comfort and indulgence. It is an inherent part of who and what we are, and in principle at least, the possibility of unshakable happiness exists for everyone, everywhere, irrespective of circumstances.

3 Characteristics of a True Political Awakening

Posted on December 21, 2017 by Reid Mukai

By Sigmund Fraud

Source: Waking Times

History is written by the winners, or so they say, but there is an agreed upon version of our story that is taught to us in school and reinforced in everyday life by the media and government propagandists. Coasting through life haphazardly believing in this standardized version of reality is a form of consciousness, a contemporary way of relating to a world where the individual is consumed by the group, and truth becomes evermore out of reach.

The typical level of political awareness in our society is fairly basic, simplified and incomplete, but it serves as a functional trap for the mind and the imagination, pigeon-holing individuals into a conformist. This psychological trap preys upon two basic human traits: conservatism and progressivism. And because these traits are biologically hardwired into the human psyche, they are exploited as a fissure to create disharmony and division amongst the public.

Many people only rise to a level of political consciousness which allows them to understand their predisposition to one or the other of these traits. Awareness often ends here, with extreme devotion to one side of the publicized political spectrum.

The truth is that human societies have always needed an even distribution of people with each of these ideological tendencies in order to achieve a balance between our need for external and internal control, protection and care. Political awakening involves rising above the prescribed psychology of division, into a position of appreciation of the qualities which unite us all.

This idea is enumerated in the following three characteristics of true political awakening.

Trust in the Statist System Collapses

To continue to trust and support a consistently abusive master is often referred to as Stockholm Syndrome. When a person experiences a true and deep political awakening, it is not longer possible to excuse any of the crushing affronts to human rights and human dignity that are intrinsic to state power.

State power is historically abusive. The manipulation of our money supply, endless wars, wasting of public resources, corruption, permitting the destruction of the natural world, terrorizing citizens with abusive police and punitive tax codes, and limiting prosperity with regulatory overkill are all standard operating procedure for the state.

In a statist world, the awakening individual is tasked with the challenge of seeing through all of this in order to free the mind and see the greater possibilities for freedom and cooperation in the human story.

So-Called Leaders Are Seen as Puppets of Division

Watching the pendulum of public opinion and discourse swing violently back and forth between the merits of two political parties is comical once you’ve recognized just how predictable and destructive it is. We are goaded into engaging in the divisiveness, encouraged by the rhetoric of the political establishment.

It is our unity they fear most. Falling into the trap of politically dogmatic ideological fortifications is more dangerous to our society than just about anything else, and the truly politically awake fly above the argumentative mentality of those who are trapped in the two-party paradigm.

The Recognition that Politics is Heavily Influenced by Powerful Forces

If politics is the arena of government, and government is clearly influenced by corporate interests, intelligence agencies and deep state operators, and supranational organizations, then it makes no sense to pretend that we have power in the political system. It makes no sense to pretend as though politicians are acting in the true interest of actual people. It makes no sense to pretend that we can save ourselves by calling on members of the state to represent us in their corrupt scene.

It is commonly known that politicians are beholden to special interests, and while they never talk openly about this influence, so many people carry on with the charade that politicians can wield power over these organization, for the benefit of the plebs. They cannot, for these forces are beyond their control. The politically awakened understand that the plots against humanity extend way beyond the political scene.

Final Thoughts

Unity is the one thing that any political elite has always feared the most. Without smashing down the perceived barriers in contemporary political consciousness we can only expect our society to become more fractured, chaotic and dangerous. Trust in that which deceives and harms us is simply not possible for the truly politically awakened.

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Category Archives: Philosophy

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