Tag Archives: Economics

Slaves and Bulldozers, Plutocrats and Widgets

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By Kristine Mattis

Source: CounterPunch

There is not an industrial company on earth, not an institution of any kind – not mine, not yours, not anyone’s – that is sustainable. I stand convicted by me, myself alone, not by anyone else, as a plunderer of the earth. But not by our civilization’s definition. By our civilization’s definition, I’m a captain of industry and in the eyes of many, a kind of modern-day hero.

— Ray Anderson, (1934-2011) CEO of Interface, Inc.

We are living a collective illusion known as the civilized world. We feign concern for our horrendous conditions of poverty, socioeconomic inequality, deteriorating public health, and severe environmental degradation (to which climate change is merely one factor), but everything we do belies that distress. These issues comprise the largest risks to the survival of the human species, as well as the most significant amoral atrocities on the planet. Both individually and as a species, our health, safety, and ability the live a decent, dignified life have always been imperiled by these predicaments. Yet, we continue along with complete cognitive dissonance in that the crux of our lives – our jobs, our consumer culture – all contribute to, perpetuate, and exacerbate the unsustainable and morally reprehensible conditions of our existence. But while we are all marginally responsible for the multitude of calamities befalling us, the one group who bears the brunt of the blame for our social and ecological decay is the wealthy.

Have you looked around and seen just what humanity has done to our stunning Earth? We’ve bulldozed the beauty for bucks. Far too much of what was once a glorious paradise is now a complete disaster of unfathomable proportions. A disaster wholly of our own making. In America, and in most places around the world, from the moment we are born we are preparing for a future career, and  more specifically, for the lifelong goal of making money. But on the whole, most of the jobs we do end up being more detrimental than beneficial to society and the environment. We characterize work through measures of productivity, but producing more and more unnecessary, meaningless, and often useless products compromises our physical environment, which in turn, compromises the health of humans, other beings, and our entire planetary ecosystem.

So many of the things that form the basis of our civilization should not, and perhaps cannot, exist in a just and sustainable world. Items like arms and artillery, synthetic chemicals, concentrated animal feeding operations, plastic, smartphones and other electronic gadgetrydo not feed a sustainable and equitable world but create more needless havoc. The irony, though, is that the very people who run the systems that incessantly construct and promulgate these harmful, redundant, or unnecessary products are the richest and most successful people on earth.

We define success in our society almost exclusively in terms of wealth, with its attendant power and sometimes, fame. Rich people are the recipients of adulation and reverence for nothing more than their accumulation of wealth and material products. We like to think that riches come by way of great intellect, talent, skill, and a strong work ethic, but in reality, monetary success is more a matter of inherited socioeconomic status, ambition, and determination, rather than ability and aptitude. Most of all, to achieve wealth means to have a myopic resolve, not only to look away from how the sausage is made, but to not care how the sausage is made.

The wealthy in our society then become the people with the most power and influence. While ironically, they are the people least deserving of our respect. They are the exact people whom we should look upon with the utmost skepticism and even disdain. They should not be in the position to make decisions about our collective lives and the workings of our society, because their financial success is completely antithetical to societal justice and sustainability.

It doesn’t take great acumen or diligence to make a lot of money; it takes a narrow-minded, insular, immoral, sometimes psychopathic view of life, in which personal pleasure and profit are the primary variables. It’s quite easy to do well financially and find personal satisfaction if the exploitation of humans, other animals, and the entire biosphere is left outside of the realm of your career consciousness. As Ray Anderson, CEO of Interface Carpet admitted,“For 21 yearsI never gave a thought to what we were taking from the earth or doing to the earth in the making of our products.” He built his fortune without consideration to the effects of his enterprise until someone brought the deleterious consequences to his attention.

We like to believe the cream rises to the top, but the truth is that the top is actually full of scum. We have seen in recent weeks, if we did not know already, that entertainment, politics, and indeed, all of the wealthiest industries are cesspools of moral depravity, especially at the apex.

There may be some exceptions, but scum is the rule. Some might call these people ambitious, some might call them razor-focused, others would call them sociopathic. It takes a careful regimen of willful  ignorance and/or denial to not consider all the harms that directly and indirectly result from avenues toward career achievements in the process of our normal lives – harms such as exploitation of labor, torture of animals, and toxic contamination and of food, water, and natural resources.

Material success requires rape and pillage, figuratively and literally. Donald Trump bragged that when you have the kind of wealth he has, you can treat women as objects and just “grab ’em by the pussy.” You can also exploit resources, exploit labor, befoul the environment, and endanger public health with few or no consequences. On a purely moral basis, only scum could have the hubris to consider others as mere playthings for their own enjoyment, to feel superior enough to warrant their extreme wealth which they did not earn but stole from the commons, and to believe that they deserve obscene riches when the majority of others do not even have basic life necessities.

How often have you heard the phrases “not that there is anything wrong with being rich,” or “I don’t begrudge him his wealth”? Wealth should be considered reprehensible. Wealth has always been in the hands of the few to the detriment of the many, and one’s access to it has always been almost wholly correlated with one’s socioeconomic status at birth. Yet we rationalize this immoral situation and pretend that the proverbial “pie,” of which we all need a slice, is infinite in size and that wealth is accessible to anyone. We assume that being rich is not only acceptable but aspirational. It is neither in a just and sustainable world.

On a finite planet every excess dollar, every excess material good, every extra home, car, garment, trinket, piece of food, or beverage that one person possesses essentially correlates to an item that another person does not have. When we normalize one person having more than he/she needs in a world where billions have far less than the bare minimum required to meet their basic needs, then we are obliged to rethink our morality. When a simple handbag can cost between $12K and $300K and we as a society see nothing wrong with that kind of excess in the face of poverty, hunger, homelessness, and disease, we are not only completely socially corrupt, we are spelling our own doom. Poverty only exists because excessive wealth exists and neither is compatible with a sustainable and humane civilization.

To achieve a sustainable world, we must relinquish our use of non-renewable resources, we must utilize renewable resources at a level in which they have the time and ability to replenish, and we must leave no waste that is not regenerative. To achieve an equitable world, we must relinquish our greed and desire for opulence, excess, and disproportionate influence. In fact, sustainability is also a function of equity. However, our current society is predicated on the antithesis of all such requirements.

Wealthy people gain their successes because they have tunnel vision. They are singularly focused on themselves, their careers, and/or on money. They do not take into consideration the externalities involved in their actions. They pay little mind to the exploitation involved in their pursuits. Ethics never supersedes ambition. Therefore, these are the exact people who should not be in charge of making policies for the benefit of society and should not be in charge of civic ventures. To be able to be so wealthy without shame, guilt, or acknowledgement that your own wealth impedes the lives of others is to be either ignorant or indifferent. We are facing global ecological and economic collapse. Who made this happen? The wealthiest people of the world. If you are rich you do not have the solution. You are the problem.

The world is run on slave labor, indentured servitude, animal and natural resource exploitation, and endless generation of waste and contamination. Material success comes with adopting a shortsighted view of the world – closing yourself off to your own connection to global anthropogenic climate change, toxification, and inequality.

So many of the wealthy who consider themselves socially and environmentally aware perceive no connection between their own wealth accumulation and the causes they claim to champion. Instead of curtailing their materialism, they rationalize it. Instead of acknowledging that their consumerism intensifies global resource extraction, they produce more products (often erroneously labeled “green”) to sustain their riches. When the wealthy are not hawking products for their for-profit activities, they have the audacity to solicit for charitable organizations that are only necessitated by the economic system that produces poverty and environmental devastation in the wake of their extravagant wealth. They ask donations from the majority of citizens who are barely making ends meet, when they themselves could surrender probably 90% of their accumulated wealth and not notice a marked change in their material status whatsoever. The elites who are not in denial about the problems we face want scientific and technological solutions – solutions that they can throw their money at and have others solve so they do not have to think about their own contribution to the problems.

But there are no silver bullets to end inequality and environmental destruction, while continuing with business as usual in civilized society. Science cannot save us. Scientific research itself relies on the same unsustainable production, consumption, use of resources, and waste as every other industry.

Technology mavens always tout the great social or biological service that their new technology will provide. Their innovations comes under the guise of helping the world, but the majority of the time, their creations are frivolous and do not do much more than use natural resources, create waste, and earn them exorbitant profit. At the university where I earned my doctoral degree there is a masters program in biotechnology and there’s a reason why their curriculum extends beyond just science, containing at least two required business courses. Of course, business is fundamental to their instruction because the principle purpose of our education, of our careers, is profit.

All of the harmful products and practices in our civilization – military arms, sweatshops, low wages, pesticides, plastics, throw-away items, excess of products, animal cruelty, overuse of medicine and surgery – only exist to increase revenue for the rich. None are fair or just or equitable or sustainable. Our societal justification of the above items just marks our collective delusion. These products and practices persist in the name of profit, and we rationalize their continuation just as we rationalize extravagant wealth.

When Senator Bernie Sanders was on TV decrying President Barack Obama’s half-million dollar speaking engagements on Wall Street, the anchors of the program said to him, “Wouldn’t you do it if you could?” Bernie replied, “I wouldn’t be asked.” Rather, he should have explained that anyone with integrity would not accept money they do not need for some sort of quid pro quo from a destructive and corrupt institution. The hosts of the show surmised that everyone would jump at the opportunity to earn money if they had the chance. It is precisely that sort of mindset that enables these broadcasters to inhabit their influential positions on a national television program and to earn millions of dollars. They demonstrate what unethical opportunists they, and most of the rich, actually are. Their lack of ethics is internalized and taken for granted by not only them, but most of the rest of our society. They are more than willing to be bought at whatever price for whatever service. “Just doing my job” does not serve as an excuse for immorality.

Nevertheless, there are people who have chosen lives based on conviction rather than money. Former Uruguayan President Jose Mujica and Seattle City Council member Kashama Sawant chose to earn the local average income for their official positions and donate the remainder of their salaries toward social justice work. Biologist and writer Sandra Steingraber donated a portion of her $100K Heinz Award prize toward the fight against hydraulic fracturing (fracking) rather than spend it on personal treats. Likewise, teacher Jesse Hagopian donated his $100K settlement for being unjustly attacked with pepper-spray by Seattle police toward social justice action. Not everyone is looking to cash in, and not everyone is seeking the next, biggest profit-making endeavor.

Living with integrity and simplicity is difficult. People do not choose to live this way because their personal sacrifice will change the world. They do so because it is the right thing to do. They do so because having too much means others don’t have enough. They do so because living by example allows others who care to see that a life of wealth and consumerism augments inequality and unsustainability; it is not the only way to live and need not be. They live this way because only by walking the walk rather than talking the talk will we ever start to achieve justice and sustainability to help preserve the future of our species.

In recent years there have been waves and wave of protests throughout the country and the world in response to myriad societal maladies. The best protest we can do in America now is to reject the bourgeois life – reject excessive wealth and the material components that come with it, reject profligate consumption, reject consumerism, reject wasteful holidays, reject wasteful trinkets,  reject all that is incompatible with what we purport to champion. For example, retired talk-show host David Letterman appears sincere in his dedication toward helping combat climate change, while at the same time, he remains co-owner of an auto racing team. In the world in which we currently live, auto racing is completely incongruent with climate change mitigation. We can’t pretend to value matters like justice and sustainability unless the way we live upholds those values. We can’t decouple our livelihoods from our lives.

The rich tend to ensconce themselves in their well-manicured communities, shop with abandon, and disregard the abject poverty, environmental degradation, and injustices all around them. They are in the process of spending small portions of their vast fortunes building survival bunkers to withstand either the revolutionary upheaval that may soon come as a result of immeasurable socioeconomic inequality, or the catastrophic ecological collapse that may result from reckless resource extraction and expenditure. How misguided or cynical are they to not realize that by renouncing their extreme wealth, they would need no such provisions and could play a large part in salvaging our civilization?

Need I even explain how the current tax scam pending on Capitol Hill will serve to enhance all of the socioeconomic, environmental, and public health calamities that are arising ever more rapidly and in quick succession? Need I elaborate on how our escalating climate-related weather catastrophes only reach the cataclysmic proportions they do because of the wealth disparities involved and because of the high-risk industrial components therein, that exist mainly to enrich the elite? Would these natural disasters be so disastrous if more people had the economic resilience that they deserve and if society took more precaution against the hazards of multibillion-dollar industries that manufacture products of questionable value while generating tremendous wealth to a select few?

We live n a time of unprecedented social disarray, ecological disrepair, public health decay, and moral depravity. Nearly every aspect of the way we live in modern industrial societies is completely unsustainable. Even if we were to transition to 100% solar energy tomorrow throughout the planet, the worst effects of climate change might be averted, but the plastic pollution that permeates the most far-reaching depths of the oceans would still remain, the persistent organic pollutants (POPs) and endocrine disrupting compounds (EDCs) that harm our own health and the health of the entire global ecosystem remain. Not only do they remain, but they continue to be produced, not out of necessity, but for the financial profit of the privileged few. The production of, consumption of, and waste stream from our global industrial society continues unabated. This is the system that forms the foundation of all of our lives in the civilized world, and this is the system that bestows excessive wealth to some while leaving others fighting for survival.

While it is indeed the system of capitalism that generates and sustains our societal injustice and ecological degradation, the system is comprised of people – people who could abdicate their fictional obligation to happiness via indefinitely-increasing earnings, people who can choose better, Without a preponderance of such people, no countervailing just and sustainable system can ever compete.

In 1964, Uruguayan journalist Eduardo Galeano interviewed the famous Argentinean hero of the Cuban revolution Ernesto “Che” Guevara. In the midst of a comprehensive conversation, Che stated to Galeano, ” I don’t want every Cuban to wish he were a Rockefeller.” To be sure, if we are remotely interested in a sustainable and equitable world, the attainment of wealth must be transformed from admirable to contemptible. With regard to the multitude of obstacles we face, Ralph Nader once wrote “only the super-rich can save us.” He’s right. They can save us by not existing.

Are Profit and Healthcare Incompatible?

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By Charles Hugh Smith

Source: Of Two Minds

The only way to systemically lower costs is to make prevention and transparency the top priorities.

As I have been noting for a decade, the broken U.S. healthcare system will bankrupt the nation all by itself. We all know the basic facts: the system delivers uneven results in terms of improving health and life expectancy while costing two or three times more per person compared to our advanced-economy global competitors.

U.S. Lifestyle + “Healthcare” = Bankruptcy (June 19, 2008)

Sickcare Will Bankrupt the Nation–And Soon (March 21, 2011)

How Healthcare Is Dooming the U.S. Economy (Three Charts) (May 2015)

You Want to Fix the Economy? Then First Fix Healthcare (September 29, 2016)

This chart says it all: the global outlier in low life expectancy and exorbitant cost is the U.S.

The profit motive is supposed to lower costs, not increase them. In the idealized model of a completely free market, the profit motive is supposed to lower costs as customers are free to choose the best product/service for the lowest price.

In U.S. healthcare, the profits are stupendous, yet the costs are even more stupendous. Rather than lower costs, the U.S. system of for-profit healthcare has sent costs spiraling into the stratosphere, to the point that the system’s costs are threatening to bankrupt the government and the nation.

Why is this so? Karl Marx provided the answer in the 19th century. In the idealized model of free-market capitalism, those who provide superior services for the lowest price reap more profit than their less agile/productive competitors.

But as Marx observed, in real-world capitalism, open competition drives profits to zero. Every attempt to gain a competitive advantage in price increases supply and further commoditizes the product/service. This dynamic pushes prices down to the point that nobody can make a profit until competitors are driven out of business and a cartel or monopoly secures the market and controls supply, price and profit.

The most profitable structures in real-world capitalism are monopolies or cartels– which is precisely what characterizes U.S. healthcare. The only way to maximize profits is to ruthlessly eliminate competition in the marketplace–which is exactly how the U.S. healthcare system operates: the pharmaceutical industry is a cartel, hospital chains are a cartel, insurance companies are a cartel, and so on.

In the real world of state-cartel-capitalism, competition is eliminated so cartels can maximize profits.

Do-gooders are always claiming that the system could be fixed by re-introducing competition– this was the core idea behind Obamacare’s insurance exchanges–but the do-gooders are blind to the core dynamic of state-cartel-capitalism, which is cartels own the machinery of governance via lobbying and campaign contributions. The state creates and protects the cartels, period.

In state-cartel-capitalism, there is no way to maintain real competition, as the cartels instruct the state to protect their monopolies/cartels. State reformers can try all sorts of complex reform schemes (ObamaCare) but they fail to lower costs because they all leave the cartel structure and cartel ownership of governance intact.

In the good old days of the 1950s and 1960s, U.S. healthcare was more localized, and the central state (federal government) wasn’t the Sugar Daddy for the cartels. Hospitals were community hospitals (what a quaint idea in today’s hyper-cartelized system) managed by physicians and administrators who saw their role as serving the community rather than arranging for $20 million annual salaries and millions of dollars in stock options.

This is why the cartels love Medicare For All proposals: the federal government–protector and funder of the cartels–will give the cartels a blank check not just for the 120 million people currently drawing benefits from Medicare/Medicaid but for all 325 million Americans.

Fast facts on Medicare and Medicaid (Center for Medicare and Medicaid Services)

Medicare Beneficiaries: 57.7 million
Medicaid Beneficiaries: 72.3 million
estimated dual Beneficiaries (drawing benefits from both programs): 10 million

Total Beneficiaries: 120 million

Medicare/Medicaid budget, 2015: $1.2 trillion

Total U.S. healthcare costs: $3.2 trillion, 18% of GDP

Department of Defense budget, 2015: $575 billion
source

Are profit and healthcare incompatible? In the real world of state-cartel-capitalism, the answer is yes: a profit-maximizing system fails to deliver prevention while pushing costs higher, eventually bankrupting the Sugar Daddy government and the nation.

Prevention, like a bag of carrots, is intrinsically low-profit. Illness, especially chronic illness, is highly profitable because the profits flow continuously from treatments, medications, procedures, tests, visits, hospitalization, home care, a constant churn of billing, etc.

The only way to systemically lower costs is to make prevention and transparency the top priorities. Prevention, community ownership of healthcare services, transparency and unfettered competition kill profits, period. Yet these are the only way to lower costs to be in line with our competitors.

You can reconfigure the system any way you want, but you have to eliminate cartels, cartel ownership of governance, opaque pricing, government blank checks and incentives for profiteering from chronic illness. If you don’t eliminate all these, you’ve fixed nothing.

 

Human Anxiety in Late-Stage Capitalism

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By Phil Rockstroh

Source: Consortium News

A number of recent press articles, including an over 8,000-word feature piece in The New York Times have asked, to quote the Times’ headline, “Why Are More American Teenagers Than Ever Suffering From Severe Anxiety?”

Although the question was proffered, the reporters and editors responsible for the articles remain resolutely obtuse to the obvious: The bughouse crazy environment of late-stage capitalist culture evokes classic fight-or-flight responses attendant to episodes of severe anxiety and panic attacks.

The word panic has its derivation in reference to Pan, the Greek god of wilderness and wildness, of the animal body encoded within human beings and its attendant animalistic imperatives. To wit, deracinate an animal from its natural habitat and it will evince, on an instinctual basis, a fight-or-flight response.

If caged, the unfortunate creature will pace the confines of its imprisonment, chew and tear at its fur and flesh, become irritable, enervated, languish and even die from the deprivation of the environment it was born to inhabit. A caged animal, even if the unfortunate creature endures captivity, is not the entity nature conceived; the living being has been reduced to A Thing That Waits For Lunch.

Human beings, animals that we are, respond in a similar fashion. Experiencing anxiety is among the ways our innate animal spirits react to the capitalist cage. Inundate a teenager with the soul-defying criteria of the corporate/consumer state, with its overbearing, pre-careerist pressures, its paucity of communal eros, its demands, overt and implicit, to conform to a shallow, manic, nebulously defined yet oppressive societal order, and insist that those who cannot adapt, much less excel, are “losers” who are fated to become “basement dwellers” in their parents’ homes or, for those who lack the privilege, be cast into homelessness, then the minds of the young or old alike are apt to be inundated with feelings of angst and dread.

Worse, if teenagers are culturally conditioned to believe said feelings and responses are exclusively experienced by weaklings, parasites, and losers then their suffering might fester to the point of emotional paralysis and suicidal inclinations.

No Real Remedies

What does the capitalist state offer as remedy? Obscenely profitable, corporately manufactured and widely prescribed psychoactive medications. Treatment, which, at best, merely masks symptoms and bestows the illusion of recovery.

As R. D. Laing observed: “What we call ‘normal’ is a product of repression, denial, splitting, projection, introjection and other forms of destructive action on experience. It is radically estranged from the structure of being.”

In short, it is insanity to be expected to adapt to socially acceptable insanity. Yet we are pressured to adapt to, thus internalize odious, groupthink concepts and tenets. To cite one such groupthink example: homelessness is natural to the human condition and is a communally acceptable situation.

Closer to fact: The problem of homelessness is the result of a societal-wide perception problem — the phenomenon is the very emblem of the scrambling, twisting, dissociating, and displacing of perception that capitalist propagandists specialize in. Homelessness would be considered a relic of a barbaric past if this very simple principle was applied: Having access to permanent shelter is a human right and not a privilege.

What kind of a vile, vicious people would deny that simple proposition? Those conditioned by a lingering Puritan/Calvinist mindset to believe: Punishment for resisting the usurpation of the fleeting hours of one’s finite life must be severe. If the over-class can no longer get away with, as was once common practice in the Puritan/Calvinist tradition, public floggings to whip the labor force into line, then those who will not or cannot comply will be cast onto the cold, unforgiving concrete of a soulless cityscape.

It comes down to this, societies that are ridden with vast wealth inequity, due to the machinations of a rapacious over-class, create the obscenity known as homelessness. Moreover, the situation is only one of the numerous obscenities inherent to state capitalism. Obscenities that include, events that are dominating the present news cycle, e.g., the predations of a lecherous movie mogul, to the sub-cretinous doings and pronouncements of a Chief of State who is a bloated, bloviating, two-legged toxic waste dump.

Trump, No Aberration 

How is it then, liberals fail to grasp the fact that the Trump presidency is not an aberration; rather, his ascension to power should be regarded as being among the high probability variables of late-stage capitalism and empire building? The psychopathic, tangerine-tinged clown Trump is the embodiment of the Second Law of Thermodynamics, a development that is concomitant to over-expanded empires. Thus he will continue to flounce deeper into the quagmire of crash-engendering, economic legerdemain and perpetual war.

Empires are death cults, and death cults, on a subliminal basis, long for their own demise. Paradoxically, the collective mindset of imperium, even as it thrusts across the expanse of the world, renders itself insular, cut off from culturally enhancing novelty, as all the while, the homeland descends into a psychical swamp of churning madness.

A draining of the swamp of the collective mind cannot come to pass, for the swamp and citizenry are one. Withal, the likes of leaders such as Trump rise from and are made manifest by the morass of the culture itself. In a swamp, the gospel of rebirth and redemption is heard in the song of humus. New life rises from its compost.

In the presence of Trump’s debased mind and tombified carcass, one is privy to arias of rot. While Hillary Clinton’s monotonous tempo was the dirge of a taxidermist — cold, desiccated of heart, and devoid of life’s numinous spark — Trump’s voice carries the depraved cacophony of a Célinean fool’s parade … its trajectory trudging towards the end of empire.

As liberals new BFFL (Best Friend for Life) George W. Bush might ask, “Is our liberals learning.”

In a word, no. For example, the collective psyche of U.S. culture as been enflamed by the revelations that actresses were coerced into sexual encounters with a movie mogul whose power in the industry was only matched, even enhanced, by his sadistic nature. The staff of his company assisted, was complicit in, or remained silent about his lechery, as did the whole of the movie industry and the entertainment press. All as NFL athletes are being threatened with expulsion from the League if they kneel during the national anthem.

The Great Unspoken 

Yet the great unspoken remains: The enabling of and submission to the degradation, exploitation and tyranny, and the lack of resistance thereof share a common and singular factor: The careerism of all concerned. The cultural milieu concomitant to capitalism is at the rotten root and noxious blossoming of the situation.

Jean-Luc Godard’s 1967 cinematic barnburner “Two or Three Things I Know About Her” should be required viewing for those unaware or in denial of the acuity of the film’s theme i.e., becoming enmeshed within the psychical landscape of dominance, degradation, and submission inherent to and inseparable from capitalist/consumer culture will cause one to become party to societal sanctioned prostitution. When life is negotiated within a collective value system that devalues and deadens the individual’s inner life thus warps every human transaction, anomie descends, the worst among a people ascend to positions of power.

“Panic is the sudden realization that everything around you is alive.” — William S. Burroughs, from Ghost of Chance

When friends visited me in New York, where I lived for decades, I would take them on walking tours through the city. We would cross the Westside Highway and stroll the pedestrian walk along the Hudson River, or cross the East River by walking across the Brooklyn Bridge.

The effect of these excursions on people was often profound … the combined elements of the elemental beauty of the rivers and vastness of the city’s architecture and scope, clamor, and the dense interweaving of traditional ethnic customs and ad hoc social codes of New Yorkers often would heighten the visitors’ senses and open them to larger, more intricate awareness of themselves and extant reality … the freeways of the contemporary mind (conditioned to be constantly engaged in manic motion, with one’s mind either frenzied by an obsession with performing (ultimately futile) maneuvers directed to saving time — or stalled at a frustration inducing standstill) were replaced by the exigencies of life at street level, i.e., novel situations that had to be apprehended and negotiated.

The possibilities of life seemed greater. The crimped eros of insular suburban thought became loosened before the city’s intricacies and expansiveness. Although: Not all, or even a scant few, New Yorkers can maintain the state of being. Few of us can live by Rilke’s resolve to “make every moment holy.” Life, in the city, becomes grotesquely distorted … High rents, inflicted by hyper-gentrification, in combination with the deification of success and its cult of careerism overwhelm one’s psyche … There is so far to fall.

Angst (the word originally can be traced to the ancient Greek deity Ananke, the immovable by prayer and offering bitch Goddess of Necessity and the root word of anxiety) clamps down one’s sense of awareness. Ananke dominates the lives of the non-privileged citizenry while Narcissus, Trump’s, the Clintons’, et.al. and their financial and cultural elitists’ patron God rules the day. The pantheon of possibility has been decimated, a cultural cleansing has been perpetrated, by the egoist caprice of the beneficiaries of the late capitalist dictatorship of money.

Hence, we arrive at the primal wisdom tacitly conveyed by anxiety-borne states of fight or flight. Due to the reality that capitalism, on both an individual and collective basis, drives individuals into madness, all as the system destroys forest and field, ocean and sea and the soul-scape of all who live under its rapacious dominion, our plight comes down to this: We either struggle and strive, by and any and all means, to end the system — or it will end us.

Saturday Matinee: 97% Owned

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From TopDocumentaryFilms.com

97% owned present serious research and verifiable evidence on our economic and financial system. This is the first documentary to tackle this issue from a UK-perspective and explains the inner workings of Central Banks and the Money creation process.

When money drives almost all activity on the planet, it’s essential that we understand it. Yet simple questions often get overlooked, questions like; where does money come from? Who creates it? Who decides how it gets used? And what does this mean for the millions of ordinary people who suffer when the monetary, and financial system, breaks down?

Political philosopher John Gray, commented, “We’re not moving to a world in which crises will never happen or will happen less and less. We are in a world in which they happen several times during a given human lifetime and I think that will continue to be the case.”

If you have decided that crisis as a result of the monetary system is not an event you want to keep revisiting in your life-time then this documentary will equip you with the knowledge you need, what you do with it is up to you.

This Chart Defines the 21st Century Economy

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By Charles Hugh Smith

Source: Of Two Minds

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

One chart defines the 21st century economy and thus its socio-political system: the chart of soaring wealth/income inequality. This chart doesn’t show a modest widening in the gap between the super-wealthy (top 1/10th of 1%) and everyone else: there is a veritable Grand Canyon between the super-wealthy and everyone else, a gap that is recent in origin.

Notice that the majority of all income growth now accrues to the the very apex of the wealth-power pyramid. This is not mere chance, it is the only possible output of our financial system. This is stunning indictment of our socio-political system, for this sort of fast-increasing concentration of income, wealth and power in the hands of the very few at the top can only occur in a financial-political system which is optimized to concentrate income, wealth and power at the top of the apex.

Well-meaning conventional economists have identified a number of structural causes of rising wealth/income inequality, dynamics that I’ve often discussed here over the past decade:

1. Global wage arbitrage resulting from the commodification of labor, a.k.a. globalization

2. A winner-takes-most power law distribution of the gains reaped from new technologies and markets

3. A widening mismatch between the skills of the workforce and the needs of a rapidly changing economy

4. The concentration of capital gains in assets such as high-end real estate, stocks and bonds that are owned almost exclusively by the top 10% of households

5. The long-term stagnation productivity

6. The secular decline in the percentage of the economy that flows to wages and salaries

While each of these is real, the elephant in the room few are willing to mention much less discuss is financialization, the siphoning off of most of the economy’s gains by those few with the power to borrow and leverage vast sums of capital to buy income streams–a dynamic that greatly enriches the rentier class which has unique access to central bank and private-sector bank credit and leverage.

Apologists seek to explain away this soaring concentration of wealth as the inevitable result of some secular trend that we’re powerless to rein in, as if the process that drives this concentration of wealth and power wasn’t political and financial.

There is nothing inevitable about such vast, fast-rising income-wealth inequality; it is the only possible output of our financial and pay-to-play political system.

Policy tweaks such as tax reform are mere public relations ploys. The cancer eating away at our economy and society arises from the Federal Reserve and the structure of our financial system, and the the degradation of our representative democracy into a pay-to-play auction to the highest bidder.

Demise Of The Petrodollar Has The Potential To Reshape The Geopolitical World

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By James ONeill

Source: New Eastern Outlook

In the early 1970s President Richard Nixon instigated two changes that had profound effects. The first of these was taking United States off the gold standard; i.e. henceforth US dollars would no longer be convertible to Gold. Ordinarily this might have been expected to have significant ramifications for the value of the US dollar.

Deleterious effects however, were avoided by another equally profound change. Nixon’s National Security Adviser Henry Kissinger negotiated an agreement with Saudi Arabia that henceforth all oil(initially from Saudi Arabia but rapidly extended to all OPEC) countries would be traded only in US dollars, the birth of the so called petrodollar.

It was a classic mafia style arrangement. In exchange for Saudi Arabia’s agreement to the sole use of the dollar for oil transactions, the US underwrote Saudi Arabia’s security thereby ensuring the continuity of one of the world’s most corrupt and repressive regimes.

Also unknown at the time, the US and Saudi Arabia entered an arrangement whereby Islamist terrorist groups (as long as they were Sunni) would be financed by Saudi Arabia and armed by the Americans and then used in pursuit of US geopolitical goals. Operation Cyclone, begun under the Carter administration in the 1970s was an early forerunner of this tactic, but it has been refined and utilized in different formats in a wide number of countries ever since.

The objective was always fundamentally the same: to undermine and if necessary replace governments that were insufficiently compliant with US geopolitical aims. As and when necessary, US troops and their “coalition” allies would be inserted into the target countries. The destruction of Afghanistan (2001 and continuing) Iraq (2003 and continuing) Libya (2011 and continuing) are only three of the better-known examples.

The huge financial cost of these military and geopolitical ventures did not impose a proper price upon the US because of the hegemonic role of the US dollar. The US, in effect, had their multiple wars of choice paid for by other countries as the dollar’s role in world trade created a constant demand for US Treasury bonds.

The role of the US dollar also permitted the US to impose sanctions on recalcitrant countries. The selective nature of the sanctions, always directed toward a US geopolitical or commercial advantage, were clearly an instrument of repressive power. Notwithstanding claims that they were to “punish” the alleged misconduct of the specified country, their actually use betrayed their geopolitical purpose.

Sanctions against Russia for its” invasion” of Ukraine “annexation” of Crimea, and against Iran for its “nuclear program” are two of the better known illustrations of sanctions being justified on spurious grounds..

The use and abuse of the dollar’s power is clearly unacceptable, but the capacity to invoke countermeasures was until quite recently severely limited. The single most important countervailing force is the rise of China as the economic powerhouse of the world, and importantly, the creation of alternative structures in trade, finance and security, that translate China’s economic power into a force for major change.

That change is assisted by the number of collateral developments. In 1990, the G7 nations (Canada, France, Germany, Italy, Japan, the US and UK) had a combined GDP approximately six times greater then the seven economically most important emerging nations (Brazil, China, India, Indonesia, Mexico, Russia and South Korea).

By 2013 the “emerging seven” had surpassed the G7’s GDP total and according to the IMF’s estimates for 2017, the GDP of the two groups will be $47 .5 trillion and $37.8 trillion for the emerging seven and the G7 respectively. Turkey, which is growing at 5% per annum, has replaced Mexico in the top emerging seven.

BRICS, which contains four of the emerging seven nations and the Shanghai Corporation Organisation (SCO), which includes China, India and Russia, are working together on the architecture of a monetary alternative to the dollar. The SCO alone contains 42% of the world’s population.

India’s role in BRICS and the SCO is one reason it is being assiduously cultivated by Australia, Japan and the United States in an attempt to set up a “quadrilateral four” to slow and undermine the role of China and Russia in creating an alternative to longstanding western domination and exploitation.

It was in this context that Russia’s President Putin at the recent BRICS meeting in Xiamen, China said that

“Russia shares the BRICS countries concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies.”

This speech developed a theme that Putin had developed in an article published prior to the BRICS meeting. Putin bluntly vowed to destroy the US led financial system, aiming to reform a system that gives excessive domination to a limited number of reserve (i.e. predominantly western) currencies.

China has developed a new Cross Border Interbank Payments System (CIPS) to replace the US dominated SWIFT system, itself used as a tool for financial bullying by the US. Russia has also taken steps to insulate itself from the ill effects of being excluded from SWIFT.

Other major changes are also occurring. Venezuela, with the world’s largest known oil reserves, has ceased accepting payment in US dollars. In the past US retaliation through regime change would have been immediate as happened to Libya’s Gaddafi (confirmed by Clinton’s leaked emails) and the Iraq’s Saddam Hussein who had announced that he would henceforth accept payment in euros and not dollars.

China and Qatar recently concluded a $50 billion deal denominated in Yuan. There were immediate threats and absurd demands from Saudi Arabia, undoubtedly acting as the voice of the US administration, but nothing more serious. The lack of military intervention or attempted regime change was probably attributable to Turkey’s military intervention, a series of agreements with Iran, and the probable implied threat of Chinese intervention should the Saudis further demonstrate their military incompetence (as in Yemen) by anything as rash as direct military moves against Qatar.

Saudi Arabia is rapidly reaching a crunch point in its relationship with China, a huge purchaser of Saudi Arabia’s oil. It is widely known that China wants future oil contracts denominated in Yuan. The attraction for Saudi Arabia is that the Chinese guarantee their Yuan with gold traded on the Hong Kong and Shanghai exchanges. Ironically, this puts China in the same position as the United States prior to Nixon’s withdrawal from the gold backed dollar.

The dilemma for the Saudis is that if they comply with the Chinese demands they risk losing the Americans underwriting their security. US instigated regime change in Saudi Arabia is a very real possibility and the recent maneuverings by Mohammad bin Salman to consolidate his power can be interpreted as a response to that possibility.

Typically, the western media focused on relative trivialities, such as women being able to drive motor vehicles from 2018 (in limited circumstances), rather than examining the underlying geopolitical power struggle.

The other major development worth mentioning in this context is the rapid increase in the number of countries doing deals with China using the Yuan or their own national currencies as the medium of exchange. China’s Belt and Road Initiative, currently involving 65 nations, will undoubtedly accelerate this trend. Russia and China are already each other’s critically important trading partners and all agreements between them are being denominated in either Yuan or Rubles.

It would be naïve to assume that this is all going to occur without a massive rearguard action by the Americans who know full well that their ability to defy economic logic is only possible because of the dollar’s unique role, allowing in turn military interventions to prop up their now rapidly declining power.

The United States’ aggressive and provocative actions in the South China Sea, North Korea, Ukraine, Syria and elsewhere our best interpreted as the flailing’s of a declining empire. The real question is will the United States accept the disappearance of the unique power that it has wielded since the Bretton Woods agreement of 1944 and adjust its policies accordingly, or destroy us all in their attempts to recapture a lost world.

The Seeds of Anti-Capitalist Revolt Found in Everyday Resistance: A Review of Guerrillas of Desire – Notes on Everyday Resistance and Organizing to Make a Revolution Possible by Kevin Van Meter (AK Press, 2017)

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By Scott Campbell

Source: Institute for Anarchist Studies

Back when I first began selling my labor for a wage in the wasteland of suburbia’s strip malls, I can recall the tedium of stocking shelves, summoning up insincere courtesy in the face of entitled customers and obnoxious bosses, comparing the stacks of money counted at the end of the day with the totals on our paychecks, and feigning adherence to whatever motivational façade management cooked up to mask the reality of our exploitation.

Yet I also remember, much more vividly and fondly, the latent and occasionally eruptive defiance among my co-workers. This included the constant collective complaining about the job, taking more and longer-than-approved breaks, working as little as possible, fudging time sheets, stealing, and the intermittent screaming matches with the boss in the middle of the store. Underpinning all these actions was an unspoken but broadly understood code of silence when it came to such transgressions and, when appropriate, expressions of support for them.

At the time, I didn’t think much about this, it was just how things happened and I’ve encountered similar experiences to varying degrees in every workplace since. Our actions weren’t guided by a political framework nor was there any attempt to organize them in a directed manner. It was more a spontaneous, innate reaction to experiencing the coercion of capitalism. I had cause to reflect upon this anew while reading Kevin Van Meter’s new book, Guerrillas of Desire: Notes on Everyday Resistance and Organizing to Make a Revolution Possible, published by AK Press and the Institute for Anarchist Studies.

In the preface, Van Meter observes that the question motivating him is not “What is to be done?” but “How do people become what they are?” Throughout the course of the book he seeks to provide an answer by locating power in the resistance of workers, apart from any political ideology or organization. Whether and how that inherently anti-capitalist refusal of work develops into revolt or rebellion are the questions he compellingly urges us to reflect and act upon.

To reach that point, Guerrillas of Desire ambitiously takes on multiple tasks that feed into and build on one another. Van Meter initiates a dialogue between anarchism and Autonomist Marxism that leads to a reconceptualization of the working class, bolstered in part by a historical accounting of workplace actions such as the ones I recounted. He labels these “everyday resistance,” committed by “guerrillas of desire,” and proposes a focus on those deeds as the entry point for organizing revolutionary resistance to capitalism. The impetus for this initiative, concisely carried out in under 160 pages, is his proposal that the current approach to organizing is conceptually flawed and therefore destined to fail. “Guerrillas of Desire offers a contentious hypothesis: the fundamental assumption underlying Left and radical organizing, including many strains of anarchism, is wrong. I do not mean organizationally dishonest, ideologically inappropriate, or immoral. I mean empirically incorrect” (13). The incorrect basis for current organizing is the assumption that the poor and working classes are unorganized and passive and that it therefore rests upon activists and organizations to educate and mobilize them for their own sakes. Van Meter instead proposes that there is in fact informal organization and resistance occurring, it is just of a sort that does not fit within the Left’s organizing vision and therefore goes unseen, unrecognized, and unincorporated into political theories, analysis, and action.

To provide a political frame for understanding the “everyday resistance” of the working class, Van Meter draws upon anarchism’s mutual aid – the material and emotional cooperation and reciprocal support that exists in societies – with Autonomist Marxism’s self-valorization – autonomous working class action that counters the state and capitalism, primarily the refusal of work in its myriad forms. Combined together and reinforcing one another, mutual aid and the refusal of work comprise the “everyday resistance” of the working class.

These phenomena also give definition to what is meant by “working class,” which Van Meter defines as “autonomous from both capitalism and the official organization of the Left, broadly including all those who work under capitalism, based in relationships between workers rather than as a structural component of the economy or sociological category” (32). Rather than being premised on income, occupation, or union membership, the working class under Van Meter’s formulation is made up of all those who must perform work under capitalism – be it waged or unwaged, in the factory, home, office, bedroom, affective, or social spheres. However, when they are not taking action in response to their subjugation under capitalism, these people are just workers. They become a class through the process of struggling against the conditions imposed upon them by capitalism. This struggle initially takes the form of everyday resistance based on mutual aid and the refusal of work. It is everyday resistance that unites individual workers as a class because such resistance, even when performed by one person, requires at a bare minimum the tacit complicity of co-workers and preferably their active collaboration.These acts and the social relationships they create and depend on lay the groundwork for the broader and overt organizing against capitalism more commonly interpreted as working class struggle. Using this framework as offered by Van Meter, we can understand the working class as composed of the relationships forged among workers actively in resistance against capitalism.Without anti-capitalist struggle, the working class does not exist.

After laying this theoretical groundwork, the bulk of the book traces the various forms of resistance by slaves, peasants, and workers in the industrial and social factories (the expansion of capitalist logic from the factory into society at large, in particular in service, immaterial, and reproductive work), creating a lineage and legacy of working class resistance against the various formations of capitalism that spans centuries. “Viewing the working class broadly to include slaves and peasants as well as students, homemakers, immigrants, and factory and office workers reveals the breadth of struggle and generalized revolt against work that continues to be imposed” (128). In doing so, Van Meter further builds the framework of the working class as being formed through its self-activity against the demands and deprivations of capitalism.

The historical survey brings the discussion into the present, where Van Meter offers a proposal to address his initial hypothesis that the Left is carrying out its organizing work in an incorrect way. His suggestion is for the organizers of today and in the future to begin their work by “reading the struggles” already underway in the form of everyday resistance. Through investigation and documentation by organizers, new relationships may be fostered with guerillas of desire that allow everyday resistance to expand into larger and more overt forms of autonomous anti-capitalist struggle. He proposes that the seeds of the new, liberatory worlds sought by anarchism and Autonomist Marxism are to be found in the everyday resistances that are already occurring rather than in the latest organizing manual or official Left strategy document..

While impressed after reading through this formulation, I was left with lingering questions. It remained unclear how, for instance, everyday resistance morphed into more overt, organized resistance and the part organizers positioning themselves as readers of struggle played in such a development. The personal anecdotes he provided on stepping back from ideological assumptions and reorienting towards the collective experiences of communities during his work in Long Island were helpful. It brought to mind the story of Marxist-Leninist intellectuals heading off to the Chiapan jungle with grand plans of starting a peasant guerrilla force. Only when they arrived, they found the population had no time or interest in their grandiose ideology. It was only when they dropped their assumptions and worked within the community to understand its needs, concerns and own history of resistance that the Zapatistas emerged. That, however, is a rather specific and exceptional example. I feel Van Meter’s proposal to begin organizing from within everyday resistance based on the notion that it will lead to more overt resistance could benefit from further articulation and direction.

Similarly, the focus on work as existing solely within the capitalist sphere left me curious as to his vision of the place of non-leisure activity under capitalism or even after capitalism. The refusal of the work that maintains capitalism is indispensable. Yet I would not advocate the refusal of work that maintains communal and personal well-being or builds autonomous organization, or writes books reviews in spare time, for example. Certainly, Van Meter would not advocate that either, but it remains a matter necessitating clarification and one that I believe extends beyond an issue of semantics.

Despite those questions, Guerrillas of Desire is aspirational in its scope and contains ideas and proposals worthy of consideration by radicals reflecting on how to engage in the current moment. In a time when mobilizing and organizing around class has fallen off the radar of many, it is a welcome reminder of the importance of paying attention to the working class and the integral role working class struggle plays in resistance to capitalism, alongside the currently more prevalent resistances to capitalist white supremacy, heteropatriarchy, colonization, environmental destruction and more.

Van Meter assists in this advocacy by accessibly presenting an updated Autonomist Marxist perspective of the working class, expanding it, breathing life into, and imbuing it with its own power, separate from both capitalism and the official Left. As such, he allows readers who may toil in a variety of ways under capitalism to see themselves within the working class, conceptualize their activities as part of a broader resistance with a rich history, and inspire them to build on that legacy.

 

Scott Campbell is a radical writer and translator based in California. He is part of the collectives that publish the websites El Enemigo Común and It’s Going Down. His personal site is fallingintoincandescence.com

Guerrillas of Desire is available here!

 

Why We’re Doomed: Our Economy’s Toxic Inequality

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By Charles Hugh Smith

Source: Of Two Minds

Anyone who thinks our toxic financial system is stable is delusional.

Why are we doomed? Those consuming over-amped “news” feeds may be tempted to answer the culture wars, nuclear war with North Korea or the Trump Presidency.

The one guaranteed source of doom is our broken financial system, which is visible in this chart of income inequality from the New York Times: Our Broken Economy, in One Simple Chart.

While the essay’s title is our broken economy, the source of this toxic concentration of income, wealth and power in the top 1/10th of 1% is more specifically our broken financial system.

What few observers understand is rapidly accelerating inequality is the only possible output of a fully financialized economy. Various do-gooders on the left and right propose schemes to cap this extraordinary rise in the concentration of income, wealth and power, for example, increasing taxes on the super-rich and lowering taxes on the working poor and middle class, but these are band-aids applied to a metastasizing tumor: financialization, which commoditizes labor, goods, services and financial instruments and funnels the income and wealth to the very apex of the wealth-power pyramid.

Take a moment to ponder what this chart is telling us about our financial system and economy. 35+ years ago, lower income households enjoyed the highest rates of income growth; the higher the income, the lower the rate of income growth.

This trend hasn’t just reversed; virtually all the income gains are now concentrated in the top 1/100th of 1%, which has pulled away from the top 1%, the top 5% and the top 10%, as well as from the bottom 90%.

The fundamental driver of this profoundly destabilizing dynamic is the disconnect of finance from the real-world economy.

The roots of this disconnect are debt: when we borrow from future earnings and energy production to fund consumption today, we are using finance to ramp up our consumption of real-world goods and services.

In small doses, this use of finance to increase consumption of real-world goods and services is beneficial: economies with access to credit can rapidly boost expansion in ways that economies with little credit cannot.

But the process of financialization is not benign. Financialization turns everything into a commodity that can be traded and leveraged as a financial entity that is no longer firmly connected to the real world.

The process of financialization requires expertise in the financial game, and it places a premium on immense flows of capital and opaque processes: for example, the bundling of debt such as mortgages or student loans into instruments that can be sold and traded.

These instruments can then become the foundation of an entirely new layer of instruments that can be sold and traded. This pyramiding of debt-based “assets” spreads risk throughout the economy while aggregating the gains into the hands of the very few with access to the capital and expertise needed to pass the risk and assets off onto others while keeping the gains.

Profit flows to what’s scarce, and in a financialized economy, goods and services have become commodities, i.e. they are rarely scarce, because somewhere in the global economy new supplies can be brought online.

What’s scarce in a financialized economy is specialized knowledge of financial games such as tax avoidance, arbitrage, packaging collateralized debt obligations and so on.

Though the billionaires who have actually launched real-world businesses get the media attention–Bill Gates, Jeff Bezos, Steve Jobs, et al.–relatively few of the top 1/10th of 1% actually created a real-world business; most are owners of capital with annual incomes of $10 million to $100 million that are finance-generated.

This is only possible in a financialized economy in which finance has become increasingly detached from the real-world economy.

Those with the capital and skills to reap billions in profits from servicing and packaging student loan debt have no interest in whether the education being purchased with the loans has any utility to the indebted students, as their profits flow not from the real world but from the debt itself.

This is how we’ve ended up with an economy characterized by profound dysfunction in the real world of higher education, healthcare, etc., and immense fortunes being earned by a few at the top of the pyramid from the financialized games that have little to no connection to the real-world economy.

Anyone who thinks our toxic financial system is stable is delusional. If history is any guide (and recall that Human Nature hasn’t changed in the 5,000 uears of recorded history), this sort of accelerating income/wealth/ power inequality is profoundly destabilizing–economically, politically and socially.

All the domestic headline crises–culture wars, opioid epidemic, etc.–are not causes of discord: they are symptoms of the inevitable consequences of a toxic financial system that has broken our economy, our system of governance and our society.