The Psychological Warfare Behind Economic Collapse

By Brandon Smith

Source: Alt-Market.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Should Taxpayers Be Subsidizing Obscene Salaries?

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By Adnan Al-Daini

Source: Dissident Voice

An article in the Guardian on bosses’ pay by the director of the High Pay Centre, Deborah Hargreaves, presents the disparity between bosses’ pay and the average wage in the UK thus:

“Chief executives in the FTSE 100 companies took home £4.96m in 2014 compared with average wages of £27,645. And, if anything, the pay gap is getting wider. A typical incentive award for a top boss increased by 50% of salary compared with the previous year, while workforce wages were up by £445. Bosses’ remuneration has risen from around 47 times average wages in the 1990s to around 180 times today.”

The pay gap shown by the above figures will be even wider if the salaries of bosses are expressed as a multiple of the median wage instead of the average wage. The average wage is skewed towards the top, thus most workers will earn below the average. The median wage is a better measure as it means half of the workers will earn below it and the other half above it.

Free-market ideologues would argue that salaries are fixed by market forces, and questioning such a disparity in income is tantamount to the politics of envy and interference in the freedom of markets. Such an argument is not really sustainable.

A company is a joint enterprise, and for it to be successful all its employees need to feel valued and justly rewarded. Such a disparity in income sends the wrong message to the many people who are working hard to make the company successful. It will lead to dissatisfaction and low morale amongst the workforce, and will eventually negatively impact the success of the company. A good boss will not accept such an obscene disparity in income between himself and his employees. Such salaries have become a virility symbol for bosses to compete with each other. It shouts – I am more important than you; just look at the size of my package!

If the wages paid by a company to its poorest employees are so low that it requires the state to top up their wages to provide them with the basics of life, then inflated salaries paid to the bosses are effectively being subsidized by the taxes we pay. It is a transfer of wealth from the many to the very few at the top. How can that be right? Where is the free-market in such practices?

If the income distribution is more equitable, the subsidy by the state to the low paid will be reduced, leaving more money for the government to spend on the NHS, infrastructure, police etc., things that are necessary for a civilized, functioning society.

Surely, then, that gives our elected government the right to enact laws and regulations to fix maximum salaries of bosses as a multiple of the lowest wage in that particular company. This will incentivize the bosses to increase the pay of their poorest employees to increase their own pay. The multiple should be certainly much lower than the figures quoted above.

Our taxation system needs to be overhauled to reflect the huge disparity in incomes; it is too narrowly set. Currently, we have a tax-free allowance of £10,600 and then a jump to 20% up to £42,385 then 40% up to income of £150,000, and a tax rate of 45% on income above £150,000.

A more progressive taxation system would start at a much lower rate and continue to rise incrementally well beyond the 45%. I am not a tax expert, so I leave it to those with the expertise to set the rates in such a way that we as a society ensure that the wealth of the nation is more equitably distributed.

Fairness and justice are the pillars on which successful, happy societies are built. The present system that siphons so much wealth to the top 1% to the impoverishment of the rest is neither fair, nor just. Failure to take action will result in the whole of society becoming the poorer; we will all suffer rich and poor.

 

Adnan Al-Daini (PhD, Birmingham University, UK) is a retired University Engineering lecturer. He is a British citizen born in Iraq. He writes regularly on issues of social justice and the Middle East. Read other articles by Adnan.

 

Neoliberalism Is Changing Our World Without Our Even Noticing

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Wendy Brown charts the ‘stealth revolution’ that’s transforming every aspect of society — and now has democracy in its sights.

By Hans Rollmann

Source: PopMatters

‘Neoliberalism’ is a much confused and maligned term these days. Progressive activists deploy it derisively as a general sort of derogatory label; learned professors write articles on the topic without really saying anything more penetrating. It’s as over-used an idiom as globalization (or as capitalism and socialism were 70 years ago). Even Anti-Flag take up the subject in their 2012 track “The Neoliberal Anthem”: “Strap in and watch the world decay!” they proclaim. Blunt, but not inaccurate.

Yet for all its confounded usages, what exactly does it signify?

In a 2013 review essay in the Los Angeles Review of Books that is more useful – if less straightforward – than Anti-Flag, Michael W. Clune described neoliberalism as “an economic doctrine that favors privatization, deregulation, and unfettered free markets over public institutions and government.” (”What Was Neoliberalism?”, 26 February 2013)

But it’s much more than that. Now, in Undoing the Demos: Neoliberalism’s Stealth Revolution, political theorist Wendy Brown contributes a truly useful text on an over-wrought topic, and one which focuses not only on the economic manifestations of neoliberalism, but on its broader effects on our political and social thinking. “Neoliberalism is a distinctive mode of reason, of the production of subjects, a ‘conduct of conduct,’ and a ‘scheme of valuation,’” she writes. It’s a mode of thinking, and the manner in which it emerges can be infinitely varied. We must be alert to neoliberalism’s “inconstancy and plasticity”, she warns, and its ability to reconfigure itself in new guises. Neoliberalism “takes diverse shapes and spawns diverse content and normative details, even different idioms. It is globally ubiquitous, yet disunified and nonidentical with itself in space and over time.” It’s a slippery beast, in other words – hard to define and even harder to see when it’s happening.

Brown’s work is an important and vital contribution at this time insofar as it takes aim at the beating heart of neoliberalism: its insinuation in the very institutions and identities which were hitherto used to limit its spread; institutions which, it was once hoped, would sustain deeper and more profound values implicit to democratic society and human sociality.

Brown is less interested than other scholars in the grim economics of neoliberalism: what she focuses on is its implicit threat to democracy. She opens her book by charting the emergence and contestation between ‘homo politicus’ and ‘homo oeconomicus’; between the human who uses politics to shape their world, and the human who is driven by self-interest and sees the world as always already shaped by economics. French philosopher Michel Foucault discussed this dichotomy in his 1978-79 College de France lectures on the Birth of Biopolitics, and Brown analyzes what Foucault saw – and failed to see – about this early emergence of neoliberal rationality.

In a superb if lamentably short section on gender she also discusses the question: “Does homo economicus have a gender? Does human capital? Is there a femina domestica invisibly striating or supplementing these figures…?” Her point is that “liberalism’s old gender problem is intensified by neoliberalism”, or that neoliberalism impacts women with particular vehemence.

Having discussed Foucault’s early charting of neoliberal political rationality, and expanded on his ideas in light of neoliberalism’s trajectory in the past 30 years, Brown analyzes some modern examples of neoliberalism’s diverse expressions. She looks at how it has insinuated itself in governance – in the notion of building consensus, rather than appreciating contestation; in the depoliticization of government; in the valorization of benchmarking and best practices. All of these deliver destructive blows against democratic political will, against the notion that humans can determine their own destiny and ought to shape their own reality. Instead of making their own decisions, governments appoint ‘external consultants’ to tell them what they should be doing; instead of inventing new ideas and ways of doing things, governments survey ‘best practices’ and see what everyone else is doing. It represents, in many ways, the triumph of mediocrity.

Neoliberal rationality infects law and legal reason, as well. Brown offers an in-depth analysis of the Citizens United case, which protected the right of corporations and the wealthy to dominate democratic elections in the US with their overwhelming power of capital. She also offers one of the best and most thorough analyses of how neoliberal rationality is destroying higher education: the post-WWII dream of an educated and equal society has been twisted into an economistic view, which holds that universities exist only to enhance capital; and that the purpose of an education is not to become better able to contribute to the broader political community, but rather to enhance one’s own ability to generate further capital.

Brown’s book is theoretical yet accessible; it’s an important and vital interjection which reveals and casts bare the neoliberal rationality that increasingly governs our world.

Dismantling Neoliberal Rationality

There’s an implicit warning in Brown’s text, which she addresses briefly but is worth some additional reflection. Audre Lorde famously cautioned against using the master’s tools to dismantle the master’s house, and increasingly this is precisely the direction in which efforts to limit the ravages of neoliberal thinking have turned, using economistic arguments in an effort to preserve institutions and principles that are premised on other-than-economistic values. Some examples serve to illustrate this.

In the ‘80s and ‘90s, public-private partnerships (P3’s) emerged as a neoliberal strategy transferring control and responsibility for public infrastructure – roads, bridges, hospitals, schools – into private hands. The basic argument held that the private sector, not beholden to political interests but rather to principles of efficiency and maximization of cost and utility, would prove more efficient custodians of public infrastructure. This neoliberal argument piggybacked nicely onto the drive to lower taxes. In an environment where lower taxes resulted in reduced state budgets, maximizing cost and efficiency would ensure public dollars stretched as far as possible.

This argument was received sympathetically by a public which had been worked up (by conservative pundits and politicians) into a collective sense of outrage over personal tax obligations and a sense of diminishing consumer power. It struck an affective chord, even though it was not based on any solid research. Yet P3’s became a dominant and accepted approach to building and maintaining public infrastructure and services.

In the past decade, efforts to fight back against public-private partnerships have achieved some limited success and have taken as their point of departure the fact that these partnerships are in fact not very efficient or effective. The private sector, it turns out, is often even more inefficient and ineffective than the public sector, given that it is driven by values such as greed and profit as opposed to public accountability. Analyses of several P3 projects have revealed massive cost over-runs, invariably subsidized by taxpayers to a cost far in excess of what it would have cost the state to produce the infrastructure on its own. (”The Problem with Public-Private Partnerships”, by Toby Sanger and Corina Crawley, CCPA, 1 April 2009) Contractual stipulations often guarantee corporate profits at public expense, requiring the state to assume all the risk, using public funds to rescue projects when private partners fail or walk away, and in some cases even using public funds to top-up corporate profits that fail to meet agreed-upon projections. (”Ontario Auditor breaks new ground with review of public private partnerships methodology”, by Keith Reynolds, Policy Note, 5 January 2015)

All this is true, and revealing the truly ineffective and inefficient nature of P3s has been critical to turning them back in many cases. However, there’s a problem with this. These campaigns against P3s adopt the same economistic principles as were used to promote the notion of P3s in the first place: namely, that efficiency, cost maximization and capital enhancement ought to be the driving principles of the demos, or public state. The implicit argument is that P3s are wrong not because they transfer public ownership into private hands, but because they do so inefficiently and at the expense of the taxpayer. Granted, there is often a reference to P3s being ‘unaccountable’ to the public, but this is rarely interrogated or explored as deeply as it should be. In fact, it ought to lie at the core of public resistance to P3s. Public-private partnerships are wrong simply because the state ought never to allow public goods to fall under private control, even if it might save more money. Economization ought never to hold sway over the values, principles and political power of the public.

Similarly, neoliberal logic has infected other efforts to fight back against neoliberal initiatives. Labour unions – a common target of neoliberalism—are increasingly defended on the basis that they benefit the economy (through ensuring consistent and safe workplace practices as well as strong wages to bolster consumer spending in the community), rather than on the simpler basis that workers deserve the right to control their working conditions. Efforts to reduce tuition fees for out-of-province/state or international students are often predicated on the notion that their economic contribution to the local economy exceeds the value of their fiscal contribution to the university through tuition fees. Nowhere – or rarely – is the argument presented that post-secondary ought to be a public good and universal right in and of itself.

The danger, in other words, is that efforts to resist neoliberalism are increasingly being expressed in such a way that they serve to entrench and legitimize neoliberal values – economization, efficiency, capital enhancement—rather than questioning or challenging the desirability and social and political consequences of those values in the first place.

Brown acknowledges the urgency of the problem. It’s quite possible, she observes, for neoliberal economic policy to be paused or reversed but for “the deleterious effects of neoliberal reason on democracy” to survive, undermining the potential for substantive, entrenched change. Without tackling neoliberal reason, neoliberal economics and governance will inevitably emerge again. It is the ongoing sense of surrender to the inevitability of economics; of the bottom line; of finance as key determiner of what is politically possible, that dooms the political potential of democracy. Although only emerging at the end of the book, this is one of the key lessons it offers: that efforts to resist or reverse the ravages of neoliberal economics are fatally flawed when “NGOs, nonprofits, schools, neighborhood organizations, and even social movements that understand themselves as opposing neoliberal economic policies may nonetheless be organized by neoliberal rationality.”

Fascism’s Forbidden Face

Brown comes close to a forbidden truth in closing. She notes, with great delicacy and hesitation, the similarities between neoliberal rationality and fascism. “This is not to say that neoliberalism is fascism or that we live in fascist times,” comes the inevitable caveat. But what if it is an emerging form of fascism?

One of the troubling trends that’s emerged in recent decades and needs to be challenged more forcefully is the notion that it’s intellectually taboo, inaccurate or excessive to call something ‘fascist’, or to draw analogies to fascist states like Nazi Germany. An example of this taboo is ‘Godwin’s Law’ – the notion that referring to Hitler (or by extension, fascism broadly) destroys the credibility of your argument. It’s a trendy term, but intellectually dangerous. The fact is, fascism was – and is – very real, and the notion that no one should talk about fascism as seriously emerging in the present day is very much a product of our neoliberal era.

In fact we do need to talk about it. The skepticism with which the term ‘fascism’ is treated; the dismissal of arguments which make reference to Nazis, all collaborate in erasing and masking the very real resemblances that exist between historical fascism and contemporary forms of governance like neoliberalism. In its demand for self-sacrifice to the heartless whole – a demand iterated, for instance, in the sacrifice of millions of homeowners and mortgage defaulters in order to save the banks during the subprime mortgage crisis – neoliberal rationality resembles the demand for citizen self-sacrifice that characterized fascism.

George Orwell (in his remarkable book review of Adolf Hitler’s Mein Kampf) warned against underrating the emotional appeal of fascism. While socialism and even capitalism offered a vision of the good life – fewer working-hours, health and education, leisure and pleasure – people appear inevitably lured by the attraction of struggle and self-sacrifice. “Whereas Socialism, and even capitalism in a more grudging way, have said to people ‘I offer you a good time,’ Hitler has said to them ‘I offer you struggle, danger and death,’ and as a result a whole nation flings itself at his feet,” he wrote. The same could easily be said of neoliberalism: people have a remarkable knack of voting for economic tough-guys who promise to make life harder on individuals and communities in order to ‘save the economy’, whatever that’s supposed to mean.

Brown’s book is essential reading not only for academics but for anyone concerned with our collective political future, and with the defense of democratic politics. Her book ends on a grim note: “Despair” is the title of its final section. Brown has eloquently elucidated the problem, and made a profound contribution to understanding the complex nature of neoliberal rationality and its threat to democracy.

So what is the solution? Brown doesn’t have one, but notes there is no alternative but to keep struggling to find an alternative. We have reached a state of “civilizational despair”, she writes; modernism is dead and with it the hope and belief that we can create a better world. How do we counter this despair, and re-inject hope and alternatives into the world? Such a task “is incalculably difficult, bears no immediate reward, and carries no guarantee of success. Yet what, apart from this work, could afford the slightest hope for a just, sustainable, and habitable future?”

 

Hans Rollmann is a writer and editor based in Eastern Canada. He’s a columnist, writer and opinions editor with the online news magazine TheIndependent.ca as well as editor of Landwash, a journal of literary and creative arts published out of Newfoundland and Labrador. His work has appeared in a range of other publications both print and online, from Briarpatch Magazine to Feral Feminisms. In addition to a background in radio-broadcasting, union organizing and archaeology, he’s currently completing a PhD in Gender, Feminist & Women’s Studies in Toronto. He can be reached by email at hansnf@gmail.com or @hansnf on Twitter.