Tag Archives: Kleptocracy

Have We Reached “Peak Self-Glorifying Billionaire”?

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By Charles Hugh Smith

Source: Of Two Minds

Perhaps we should update Marie Antoinette’s famous quip of cluelessness to: “Let them eat space tourism.”

As billionaires squander immense resources on self-glorifying space flights, the corporate media is nothing short of worshipful. Millions of average citizens, on the other hand, wish the self-glorifying billionaires had taken themselves and all the other parasitic, tax-avoiding, predatory billionaires with them on a one-way trip into space.

Have we reached Peak Self-Glorifying Billionaire? If so, where does the downhill slide take us? Let’s start with a bit of history. Correspondent Jim B. summarized historian Arnold Toynbee’s study of the rise and fall of civilizations thusly: “Civilizations fail when their elites change from an admired dynamic creative class to a despised Establishment of corrupt rentiers, an entrenched governing class unfit to govern.”

Despised, check. Corrupt, check. Entrenched, check.

The 2013 book Why Nations Fail: The Origins of Power, Prosperity, and Poverty discusses the differences between failed states and successful states, and concludes that the failed states are fundamentally kleptocracies that answer to a self-serving elite while successful states are answerable to the broad populace.

To summarize: When the few benefit at the expense of the many, the resulting kleptocracy ends up a failed state. When states maintain meaningful, transparent ways of responding to public needs and demands, the result is a successful state.

This is of course a simplification. The perverse effects of colonialism linger, the development of civic organizations public institutions, values and identities that make up what I call the social ontology are not pre-ordained, and nations with low-cost surplus energy can be quite successful kleptocracies until their energy surplus runs out.

But in the main, the question remains: How did previously successful political, social and economic systems change such that they no longer generated beneficial synergies but slid into fatal synergies?

From the point of view of how systems fail to maintain dynamic stability, three factors pop out:

1. Elites become too successful in sluicing the nation’s income, wealth and political power into their own hands.

2. Since the system continues to thrive despite their dominance, then there is obviously no need to change anything–especially if it reduces their share of the nation’s wealth and political power.

3. The elites ignore the intangible decay of leadership, the real-world dynamics of scarcity and over-estimate their own capabilities and the resilience of the system.

I recently described the feedback loop that occurs when a wealthy elite can purchase political power:“as a result of their campaign contributions and lobbying, the elites’ wealth continues expanding, enhancing their political power to further expand their wealth, and so on.”

In a healthy system, there are mechanisms that limit elite ownership of wealth and political power to what the system can bear. Over time, the feedback I described increases elite wealth and power to a point where the limits are crushed and the elite feedback gathers momentum.

With institutional limits no longer in the way, the elite reaches the point where the political system no longer responds to the broad public at all, and the vast majority of income-producing wealth is already in the hands of the elite.

The U.S. is already at this final stage: Wealth/Power Inequality and the Slide Into Disorder.

Testing Theories of American Politics: Elites, Interest Groups, and Average Citizens: “Contrary to what decades of political science research might lead you to believe, ordinary citizens have virtually no influence over what their government does in the United States.”

This dominance throws the system out of balance such that, as David Parsons recently put it: (Elite-dominated) “Capitalism makes everyone homeless and then makes award-winning movies about how resilient people are for living in their cars.”

The apparent success of the system even as it grows ever more imbalanced generates a self-serving confidence in the Elites that their dominance is not only benign but permanent.

But this self-serving view is illusory. Beneath the surface, major subsystems are attempting to re-establish stability, but the instability is so extreme that the measures being deployed are also extreme.

These policy extremes only push the system further out of balance in other directions, creating fatal synergies as mutually reinforcing imbalances pile up.

See the chart below of money supply as one example of many.

But the elite is blinded by their confidence and greed to these accelerating imbalances. They reckon that managing the narratives (a.k.a. propaganda), minor policy tweaks and creating more currency and credit are all that’s needed to maintain what they consider the optimal form of stability: they own 99% of political power and 97% of all the income from capital.

Monopoly Versus Democracy: How to End a Gilded Age: “Ten percent of Americans now control 97 percent of all capital income in the country. Nearly half of the new income generated since the global financial crisis of 2008 has gone to the wealthiest one percent of U.S. citizens. The richest three Americans collectively have more wealth than the poorest 160 million Americans.”

I’ve often noted that the wealth of Rome’s political and economic elite went from being 20 times the wealth of a landowning farmer or craftsman to 200,000 times the commoners’ wealth at the end of the Western Empire. Now that three individuals own more wealth than half the American populace, and the top 0.1% hold more wealth than the bottom 80%, I think we can safely declare we’ve reached the same extreme.

The first tranche of American presidents left office less wealthy than when they entered because serving in public office was understood as a noble and valued sacrifice of time and wealth. Now presidents leave office far wealthier than when they entered public service.

Per #3, the elite no longer sees any compelling reason to sacrifice their income, wealth and power to stabilize the system or benefit the common good. In the view of the billionaires, if any sacrifices are necessary, then they should be borne by the bottom 95%, or failing that, the bottom 99.5%.

Given their dominance, their willingness to use their wealth and power to protect their dominance dooms the system to destabilization and collapse, as the resources and value system required to successfully navigate eras of instability and scarcity are no longer available to the state or public.

In effect, the elite uses its power not to restabilize the system but to maintain its extreme dominance and protect it from any political threats.

A once vibrant ecosystem has become a monoculture whose stability is far more precarious than it appears on the surface, as the resilience of monocultures is entirely artificial.

Two recent books illuminate corners of this destabilizing inequality:

Billionaire Wilderness: The Ultra-Wealthy and the Remaking of the American West

‘Jackpot’ Looks at How Inequality Is Experienced by the Very, Very Rich

We are in the final stages of this accelerating destabilization: the refusal of the elite to sacrifice any meaningful share of their wealth and power to save the system from fatal synergies guarantees collapse.

Perhaps we should update Marie Antoinette’s famous quip of cluelessness to: “Let them eat space tourism.” We all know where this cluelessness ultimately leads.

America’s Death March

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By Chris Hedges

Source: Mint Press News

The terminal decline of the United States will not be solved by elections. The political rot and depravity will continue to eat away at the soul of the nation, spawning what anthropologists call crisis cults — movements led by demagogues that prey on an unbearable psychological and financial distress. These crisis cults, already well established among followers of the Christian Right and Donald Trump, peddle magical thinking and an infantilism that promises — in exchange for all autonomy — prosperity, a return to a mythical past, order and security. The dark yearnings among the white working class for vengeance and moral renewal through violence, the unchecked greed and corruption of the corporate oligarchs and billionaires who manage our failed democracy, which has already instituted wholesale government surveillance and revoked most civil liberties, are part of the twisted pathologies that infect all civilizations sputtering towards oblivion. I witnessed the deaths of other nations during the collapse of the communist regimes in Eastern Europe and later in the former Yugoslavia. I have smelled this stench before.

The removal of Trump from office will only exacerbate the lust for racist violence he incites and the intoxicating elixir of white nationalism. The ruling elites, who first built a mafia economy and then built a mafia state, will continue under Biden, as they did under Trump, Barack Obama, George W. Bush, Bill Clinton and Ronald Reagan, to wantonly pillage and loot. The militarized police will not stop their lethal rampages in poor neighborhoods. The endless wars will not end. The bloated military budget will not be reduced. The world’s largest prison population will remain a stain upon the country. The manufacturing jobs shipped overseas will not return and the social inequality will grow. The for-profit health care system will gouge the public and price millions more out of the health care system. The language of hate and bigotry will be normalized as the primary form of communication. Internal enemies, including Muslims, immigrants and dissidents, will be defamed and attacked. The hypermasculinity that compensates for feelings of impotence will intensify. It will direct its venom towards women and all who fail to conform to rigid male stereotypes, especially artists, LGBTQ people and intellectuals. Lies, conspiracy theories, trivia and fake news — what Hannah Arendt called “nihilistic relativism” — will still dominate the airwaves and social media, mocking verifiable fact and truth. The ecocide, which presages the extinction of the human species and most other life forms, will barrel unabated towards its apocalyptic conclusion.

“We run heedlessly into the abyss after putting something in front of us to stop us seeing it,” Pascal wrote.

The worse it gets — and it will get worse as the pandemic hits us in wave after deadly wave with an estimated 300,000 Americans dead by December and possibly 400,000 by January — the more desperate the nation will become. Tens of millions of people will be thrown into destitution, evicted from their homes and abandoned. Social collapse, as Peter Drucker observed in Weimar Germany in the 1930s, brings with it a loss of faith in ruling institutions and ruling ideologies. With no apparent answers or solutions to mounting chaos and catastrophe — and Biden and the Democratic Party have already precluded the kind of New Deal programs and assault on oligarchic power that saved us during the Great Depression — demagogues and charlatans need only denounce all institutions, all politicians, and all political and social conventions while conjuring up hosts of phantom enemies. Drucker saw that Nazism succeeded not because people believed in its fantastic promises, but in spite of them. Nazi absurdities, he pointed out, had been “witnessed by a hostile press, a hostile radio, a hostile cinema, a hostile church, and a hostile government which untiringly pointed out the Nazi lies, the Nazi inconsistency, the unattainability of their promises, and the dangers and folly of their course.” Nobody, he noted, “would have been a Nazi if rational belief in the Nazi promises had been a prerequisite.” The poet, playwright and socialist revolutionary Ernst Toller, who was forced into exile and stripped of his citizenship when the Nazis took power in 1933, wrote much the same in his autobiography: “The people are tired of reason, tired of thought and reflection. They ask, what has reason done in the last few years, what good have insights and knowledge done us.” After Toller committed suicide in 1939, W.H. Auden in his poem “In Memory of Ernst Toller” wrote:

We are lived by powers we pretend to understand:
They arrange our loves; it is they who direct at the end
The enemy bullet, the sickness, or even our hand.

The poor, the vulnerable, those who are not white or not Christian, those who are undocumented or who do not mindlessly repeat the cant of a perverted Christian nationalism, will be offered up in a crisis to the god of death, a familiar form of human sacrifice that plagues sick societies. Once these enemies are purged from the nation, we are promised, America will recover its lost glory, except that once one enemy is obliterated another takes its place. Crisis cults require a steady escalation of conflict. This is what made the war in the former Yugoslavia inevitable. Once one stage of conflict reaches a crescendo it loses its efficacy. It must be replaced by ever more brutal and deadly confrontations. The intoxication and addiction to greater and greater levels of violence to purge the society of evil led to genocide in Germany and the former Yugoslavia. We are not immune. It is what Ernst Jünger called a “feast of death.”

These crisis cults are, as Drucker understood, irrational and schizophrenic. They have no coherent ideology. They turn morality upside down. They appeal exclusively to emotions. Burlesque and celebrity culture become politics. Depravity becomes morality. Atrocities and murder become heroism. Crime and fraud become justice. Greed and nepotism become civic virtues. What these cults stand for today, they condemn tomorrow. At the height of the reign of terror on May 6, 1794 during the French Revolution, Maximilien Robespierre announced that the Committee for Public Safety now recognized the existence of God. The French revolutionaries, fanatical atheists who had desecrated churches and confiscated church property, murdered hundreds of priests and forced another 30,000 into exile, instantly reversed themselves to send to the guillotine those who disparaged religion. In the end, exhausted by the moral confusion and internal contradictions, these crisis cults yearn for self-annihilation.

The French sociologist Emile Durkheim in his classic book “On Suicide” found that when social bonds are shattered, when a population no longer feels it has a place or meaning in a society, personal and collective acts of self-destruction proliferate. Societies are held together by a web of social bonds that give individuals a sense of being part of a collective and engaged in a project larger than the self. This collective expresses itself through rituals, such as elections and democratic participation or an appeal to patriotism, and shared national beliefs. The bonds provide meaning, a sense of purpose, status and dignity. They offer psychological protection from impending mortality and the meaninglessness that comes with being isolated and alone. The breaking of these bonds plunges individuals into deep psychological distress. Durkheim called this state of hopelessness and despair anomie, which he defined as “ruleless-ness.”

Ruleless-ness means the norms that govern a society and create a sense of organic solidarity no longer function. The belief, for example, that if we work hard, obey the law and get a good education we can achieve stable employment, social status and mobility along with financial security becomes a lie. The old rules, imperfect and often untrue for poor people of color, nevertheless were not a complete fiction in the United States. They offered some Americans — especially those from the white working and middle class — modest social and economic advancement. The disintegration of these bonds has unleashed a widespread malaise Durkheim would have recognized. The self-destructive pathologies that plague the United States — opioid addiction, gambling, suicide, sexual sadism, hate groups and mass shootings — are products of this anomie. So is our political dysfunction. My book, “America: The Farewell Tour,” is an examination of these pathologies and the widespread anomie that defines American society.

The economic structures, even before the pandemic, were reconfigured to mock faith in a meritocracy and the belief that hard work leads to a productive and valued role in society. American productivity, as The New York Times pointed out, has increased 77 percent since 1973 but hourly pay has grown only 12 percent. If the federal minimum wage was attached to productivity, the newspaper wrote, it would be more than $20 an hour now, not $7.25. Some 41.7 million workers, a third of the workforce, earn less than $12 an hour, and most of them do not have access to employer-sponsored health insurance. A decade after the 2008 financial meltdown, the Times wrote, the average middle class family’s net worth is more than $40,000 below what it was in 2007. The net worth of black families is down 40 percent, and for Latino families the figure has dropped 46 percent. Some four million evictions are filed each year. One in four tenant households spends about half its pretax income on rent. Each night some 200,000 people sleep in their cars, on streets or under bridges. And these stark figures represent the good times Biden and the Democratic Party leaders promise to restore. Now, with real unemployment probably close to 20 percent — the official figure of 10 percent excludes those furloughed or those who have stopped looking for work — some 40 million people are at risk of being evicted by the end of the year. An estimated 27 million people are expected to lose their health insurance. Banks are stockpiling reserves of cash to cope with the expected wave of bankruptcies and defaults on mortgages, student loans, car loans, personal loans and credit card debt. The ruleless-ness and anomie that defines the lives of tens of millions of Americans was orchestrated by the two ruling parties in the service of a corporate oligarchy. If we do not address this anomie, if we do not restore the social bonds shattered by predatory corporate capitalism, the decay will accelerate.
This dark human pathology is as old as civilization itself, repeated in varying forms in the twilight of ancient Greece and Rome, the finale of the Ottoman and Austro-Hungarian empires, revolutionary France, the Weimar Republic and the former Yugoslavia.

The social inequality that characterizes all states and civilizations seized by a tiny and corrupt cabal — in our case corporate — leads to an inchoate desire by huge segments of the population to destroy. The ethnic nationalists Slobodan Milošević, Franjo Tudjman, Radovan Karadžić and Alija Izetbegović in the former Yugoslavia assumed power in a similar period of economic chaos and political stagnation. Yugoslavs by 1991 were suffering from widespread unemployment and had seen their real incomes reduced by half from what they had been a generation before. These nationalist demagogues sanctified their followers as righteous victims stalked by an array of elusive enemies. They spoke in the language of vengeance and violence, leading, as it always does, to actual violence. They trafficked in historical myth, deifying the past exploits of their race or ethnicity in a perverse kind of ancestor worship, a mechanism to give to those who suffered from anomie, who had lost their identity, dignity and self-worth, a new, glorious identity as part of a master race. When I walked through Montgomery, Alabama, a city where half of the population is African-American, with the civil rights attorney Bryan Stevenson a few years ago, he pointed out the numerous Confederate memorials, noting that most had been put up in the last decade. “This,” I told him, “is exactly what happened in Yugoslavia.”

A hyper-nationalism always infects a dying civilization. It feeds the collective self-worship. This hyper-nationalism celebrates the supposedly unique virtues of the race or the national group. It strips all who are outside the closed circle of worth and humanity. The world instantly becomes understandable, a black and white tableau of them and us. These tragic moments in history see people fall into collective insanity. They suspend thought, especially self-critical thought. None of this is going away in November, in fact it will get worse.

Joe Biden, a shallow, political hack devoid of fixed beliefs or intellectual depth, is an expression of the nostalgia of a ruling class that yearns to return to the pantomime of democracy. They want to restore the decorum and civic religion that makes the presidency a form of monarchy and sacralizes the organs of state power. Donald Trump’s vulgarity and ineptitude is an embarrassment to the architects of empire. He has ripped back the veil that covered our failed democracy. But no matter how hard the elites try this veil cannot be restored. The mask is off. The façade is gone. Biden cannot bring it back.

Political, economic and social dysfunction define the American empire. Our staggering inability to contain the pandemic, which now infects over 5 million Americans, and the failure to cope with the economic fallout the pandemic has caused, has exposed the American capitalist model as bankrupt. It has freed the world, dominated by the United States for seven decades, to look at other social and political systems that serve the common good rather than corporate greed. The diminished stature of the United States, even among our European allies, brings with it the hope for new forms of government and new forms of power.

It is up to us to abolish the American kleptocracy. It is up to us to mount sustained acts of mass civil disobedience to bring down the empire. It poisons the world as it poisons us. If we mobilize to build an open society, we hold out the possibility of beating back these crisis cults as well as slowing and disrupting the march towards ecocide. This requires us to acknowledge, like those protesting in the streets of Beirut, that our kleptocracy, like Lebanon’s, is incapable of being salvaged. The American system of inverted totalitarianism, as the political philosopher Sheldon Wolin called it, must be eradicated if we are to wrest back our democracy and save ourselves from mass extinction. We need to echo the chants by the crowds in Lebanon calling for the wholesale removal of its ruling class — kulyan-yani-kulyan — everyone means everyone.

Is the U.S. Becoming a Third World Nation?

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By Charles Hugh Smith

Source: Of Two Minds

This is a chart of an informal kleptocracy which cloaks itself in the faux finery of democracy and a (rigged) “market” economy.

Back in the day, nations that didn’t qualify as either developed (First World) or developing (Second World) were by default Third World, impoverished, corrupt and what we now refer to as failed states–governments that were incapable of improving the lives of their people and the machinery of governance, generally as a result of corruption and self-serving elites, i.e. kleptocracies.

Is the U.S. slipping into Third World status? While many scoff at the very question, others citing the rise of homelessness, entrenched pockets of abject poverty and the decaying state of infrastructure might nod “yes.”

These are not uniquely Third World problems, they’re symptoms of a status quo that’s fast losing First World capabilities. What characterizes Third World/Failing States isn’t just poverty, crumbling infrastructure and endemic corruption; at a systems level these are the key dynamics in Third World/Failing States:

1. The status quo protects insiders at the expense of everyone else.

2. There is no real accountability; failure has no consequences, bureaucrats are never fired for incompetence, reforms are watered down or neutered by institutional sclerosis.

3. Pay-to-play is the most cost-effective way to influence policy or evade consequences.

4. The status quo is incapable of differentiating between complexity that serves the legitimate purposes of transparency and accountability and complexity that serves no purpose beyond guaranteeing insiders’ paper-shuffling jobs. As a consequence, complexity that adds no value chokes the economy and the government.

5. There are two sets of laws: one for insiders and the super-wealthy, and another harsher set for everyone else.

6. The super-wealthy fear nothing because the system functions to serve their interests.

7. The super-wealthy and state insiders control the media’s narratives and the machinery of governance to serve their interests. Reforms are in name only; the faces of elected officials change but nothing changes structurally.

8. Insiders, well-paid pundits and the technocrats serving the corporate and state elites believe the status quo is just fine because they’re doing fine; they are blind to the soaring inequality, systemic corruption, stupendous waste and the impossibility of real reform.

Does America’s status quo protect insiders at the expense of everyone else? Yes. As for the other seven characteristics: yes, yes, yes, yes, yes, yes and yes.

And lets’ not forget #9: the vast majority of the economic gains flow to the elite at the very top of the wealth-power pyramid: is this true in the U.S.? Definitively yes. Just look at this chart: this is a chart of an informal kleptocracy which cloaks itself in the faux finery of democracy and a (rigged) “market” economy.

That’s the very definition of a Third World failed state.

Related Video:

Color Revolution Comes Home?

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By Kevin Zeese and Margaret Flowers

Source: Popular Resistance

The United States has perfected the art of regime change operations. The US is the largest empire in world history with more than 1,000 military bases and troops operating throughout the world. In addition to military force, the US uses the soft power of regime change, often through ‘Color Revolutions.’ The US has been building its empire since the Civil War era, but it has been in the post-World War II period that it has perfected regime change operations.

Have the people of the United States been the victims of regime change operations at home? Have the wealthiest and the security state created a government that serves them, rather than the people? To answer these questions, we begin by examining how regime change works and then look at whether those ingredients are being used domestically.

Color Revolutions and Regime Change Operations

Almost from the start, the CIA’s role has been more than intelligence gathering. It has been a key player in putting in place governments friendly to the United States and conducting other operations, e.g. the CIA is currently involved in drone strikes.

One of the first regime change operations of the CIA was Operation Ajax conducted in Iran, and led by Kermit Roosevelt, the grandson of Teddy Roosevelt, who was president when the US solidified its global empire ambitions. The CIA was founded in 1947 and the regime change coup in Iran was 1953. Greg Maybury writes in “Another Splendid Little Coup“: “Placing to one side an early dress rehearsal in Syria in 1949, the Iran coup was the first post-War exercise in regime change upon the part of Anglo-American alliance…”  Just this month the US government released documents showing the CIA and State Department’s planning and implementation of the coup against the democratically-elected prime minister of Iran, Mohammed Mossadegh. This release supplements one from 2013 that did not reveal the full role of the US in the coup.

The Iran coup was crude compared to more modern efforts but had the ingredients that have become common – civil society protests against the government, media reports supporting the protests, agents within the government supporting the coup and replacement of the government with a US-friendly regime. The Iran coup may have been the most costly mistake in US foreign policy because it undermined a secular democratic government in Iranthat could have been the example for the region. Instead the US installed the brutal Shah of Iran, whose rule ended in the 1979 revolution, in which, as Maybury reports, the US was also implicated because it felt the Shah had overstayed his welcome.

The Iran coup was perceived as a great CIA success, so it was copied in other Middle Eastern countries as well as countries in Latin America, Africa, and the Caribbean. Regime change is still a major tool of US foreign policy. There is a long-term ongoing coup campaign in Venezuela, with its most recent episode last week in which a helicopter attack on the Supreme Court was tied to the US DEA and CIA. The US has allied with oligarchs, supported violent protests and provided funds for the opposition, which has also worked to undermine the Venezuelan economy — a tactic the US has used in other coups, e.g. the coup of Allende in Chile.

The coup in Ukraine, which the media falsely calls a ‘democratic revolution,’ was, as the head of the ‘private CIA’ firm Stratfor says, “the most blatant coup in history.” The CIA and State Department played the lead roles.

Victoria Nuland, an assistant secretary of state under Clinton, bragged that the US spent $5 billion to build civil society opposition against a government that leaned toward Russia. The government funded civil society opposition through US AID, which is the open vehicle for what the CIA used to do covertly, along with the National Endowment for Democracy. This funding was used to build oppositional civil society groups and create destabilization. They focused on the issue of corruption, which exists in every government, and built it up to a centerpiece for regime change. The US allied with extremist right-wing groups in Ukraine.

The US picked the new leaders of Ukraine. This included Petro Poroshenko, whom U.S. officials refer to as “Our Ukraine (OU) insider Petro Poroshenko” in a classified diplomatic cable from 2006 . The selected Prime Minister was Arseniy Yatsenyuk. Before the coup, Victoria Nuland told the US Ambassador to Ukraine that ‘Yats’ should be the prime minister. And, the Finance Minister was Natalia Jaresko, a long-time State Department official who moved to Ukraine after the US-inspired coup, the Orange Revolution, to become a conduit for US funding of civil society through her hedge fund. She was a US citizen whom Poroshenko made a Ukrainian on the day she was appointed Finance Minister. To top it off, fmr. Vice President Joe Biden’s son, Hunter Biden, and fmr. Secretary of State John Kerry’s longtime financial ally, Devon Archer, were put on the board of the largest private gas corporation in the Ukraine. Yet, the US media refuses to call this complete take over of the country by the United States a coup and instead describes Russia as the aggressor.

The US has perfected regime change operations from the 1950s up through today. The standard method of operation is finding an issue to cause dissent, building opposition in a well funded civil society ‘movement’, manipulating the media, putting in place US friendly leaders and blaming US opposition for the coup to hide US involvement. This approach is consistent no matter which party is in power in the US.

The Kleptocratic Oligarch Coup In The United States

Let’s apply the lessons from around the world to the United States. There is no question the US is an oligarchy. We say no question because recent political studies have proven it in multiple ways.

One difference in the US is that money plays an outsized influence in US elections. The wealthy can buy the government they want through campaign donations and by anonymous spending but the tools of color revolutions are still needed to legitimize the government. Legitimacy is getting harder to buy. Many realize we live in a mirage democracy. The Associated Press-NORC Center for Public Affairs reported in 2016 the extent of the loss of legitimacy of US government:

“Nine in 10 Americans lack confidence in the country’s political system, and among a normally polarized electorate, there are few partisan differences in the public’s lack of faith in the political parties, the nominating process, and the branches of government.”

Jimmy Carter has pointed to the “unlimited bribery” of government as turning the US into an oligarchy. The government needs to use the tools of regime change at home in order to create an veneer of legitimate government.

The Donald Trump presidency, which we regularly criticize, brings a lot of these tools to the forefront because Trump beat the system and defeated the elites of both parties. As a result, Democratic Party propaganda is being used to undermine Trump not only based on his policies but also through manufactured crises such as RussiaGate. The corporate media consistently hammers home RussiaGate, despite the lack of evidenceto support it. Unlike the Watergate or Iran-Contra scandals, there is no evidence that Trump colluded with Russia to get elected. And, the security state – the FBI and the agencies that conduct regime change operations around the world – is working to undermine Trump in a still unfolding domestic coup.

Civil society also has a strong role. John Stauber writes that:

“The professional Progressive Movement that we see reflected in the pages of The Nation magazine, in the online marketing and campaigning of MoveOn and in the speeches of Van Jones, is primarily a political public relations creation of America’s richest corporate elite, the so-called 1%, who happen to bleed Blue because they have some degree of social and environmental consciousness, and don’t bleed Red.  But they are just as committed as the right to the overall corporate status quo, the maintenance of the American Empire, and the monopoly of the rich over the political process that serves their economic interests.”

Civil society groups created or aligned with the Democratic Party are defining the new form of false-resistance as electing Democrats. The Democrats, as they have done throughout history as the oldest political party, know how to control movements and lead them into ineffectiveness to support the Democratic Party agenda. We described, in “Obamacare: The Biggest Insurance Scam in History,” how this was done skillfully during the health reform process in 2009. This new resistance is just another tool to empower the elites, not resistance to the oligarchic-kleptocrats that control both parties. In fact, a major problem in progressive advocacy is the funding ties between large non-profits and corporate interests. The corruption of money is seen in organizations that advocate for corporate-friendly policies in education, health care, energy and climate, labor, and other issues.

Color Revolution Tools Used In The US

Now the tools the US uses for regime change around the world are being used at home to funnel activist energy and efforts into the Democratic party and electoral activities. In order to resist this new “resistance” we need to be aware of it and how it operates. We need to see through propaganda, such as RussiaGate, and attempts to manipulate the masses through scripted events that are portrayed as organic, such as the recent “sit in” by Rep. John Lewis and Sen. Cory Booker on the Capitol steps, or through highly emotional cultural content that portrays the plutocratic parties as parties of the people. We have to remember that the root issue is plutocracy and the US has two plutocratic parties, often referred to as “The Duopoly.”

We must continue to focus on the issues that are in crisis such as the economy, health care, education, housing, racism, inequality and militarization at home and abroad. We must fight for these issues independent of political party. We must be clear and uncompromising in our demands so that we are not taken off track. And we must have a clear vision of the future that we want to see.

Popular Resistance is a co-convener of the People’s Congress of Resistance. The People’s Congress will bring people together from around the US to meet in Washington, DC this September to outline a vision from the grassroots. A draft of that vision will be circulated over the next few months so that many people will provide input. Check out the People’s Congress here and get involved however you are able.

Collapsing Standard of Living: Kleptocrats and Militarists Fleece Americans

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117142

By Prof. James Petras

Source: GlobalResearch.ca

American living standards are plunging and it’s not simply because they are paid less, work longer (or shorter hours) under highly stressful workplace conditions and pay a higher percentage of their income for health and pension coverage.  The ‘workplace’ is only one of several locations where American working people are experiencing a sharp decline in living standards.  The new oligarchical Kleptocrats and political elites have elaborated new ways to fleece Americans.  These include: 

(1)   Increased costs and declining quality of internet, cable and other communication systems.

(2)   Intensive pervasive and perpetual surveillance by punitive espionage agencies eroding personal freedoms and violating the confidentiality of personal, political and business decisions affecting everyday life.

(3)   Large scale, repeated financial swindles by the most active and influential private and publicly trading investment companies resulting in the loss of hundreds of billions of dollars in pensions and savings for tens of millions of middle and working class investors.

(4)   Increases in taxes and charges, including sales taxes, social security deductions, medical co-payments and reductions in social services.  This is a result of the government’s commitment to finance US corporate investments and bail-outs.  Big business hoards their cash holdings abroad to avoid taxes on overseas profits.  To pay dividends they borrow.  The growth of corporate debt, concentrated in a few large corporations, holds the US taxpayer liable for any present or future collapse of the financial markets.  This corporate-induced ‘hoarding of capital’ compromises present and future living standards.  It plays a major role in the deterioration of employment, wages, social services and public infrastructure.

(5)   The astronomical growth of state spending on wars of conquest, financial giveaways propping up right-wing dictatorships and building a vast network of global military bases, proxy wars and other empire building measures reduce living standards of Americans.  By militarizing everyday life, citizens are subject to mindless repetitive propaganda designed to lower their mental capacity.  State terror-mongering propagandists in the mass media distract citizens from their declining living standards.  Political elites bully citizens to continue ‘sacrificing’ basic living standards.  Video games reproduce the worlds of war and terror, reflecting the real world policies of the ruling class.

Video games allow Americans who know they no longer have influence on political decisions and whose living standards are in decline, to vicariously exercise power and realize favorable outcomes on their mobiles.  Purchasing mobiles, video games and other gadgets enrich billionaires’— so-called “high tech” capitalists – and convert citizens into impoverished consumers.  They inhabit a bubble of illusions and passivity in the face of growing economic inequalities and political-cultural impoverishment.

The Political Bases of Declining Living Standards

The case of Comcast, the communication monopoly’s seizure of internet, is illustrative of how politics and plunder converge.  Comcast TWC, the largest communications company, presently will control 40% of the US broadband and one-third of the US cable television market.  By controlling the internet, Comcast will monopolize the principal means of communication of most Americans.  The Federal Communications Commissions (FCC), which is supposed to regulate the industry and prevent price gouging monopolies, is “dominated by senior former industry officials” (Financial Times, (FT) 4/14/, pg. 9).  Almost every elected national politician from Obama down has received substantial campaign funds from Comcast.  During Senate hearings on Comcast’s bid to monopolize the internet through the take-over of Time Warner Cable, Comcast CEO David Cohen smirked and brushed off the Senators puff-questions.  FCC complicity, Senatorial whitewashing of the private monopoly, is only part of the story.  The internet was developed largely by public funds as was Google’s search engine:  the public sector took  the risk and the private monopolists , in this case Comcast, harvest the profits.

Comcast charges Americans several times greater then what it costs to use the internet in Sweden, South Korea, Singapore and elsewhere.  Yet, US average internet speed is as little as a tenth as fast as that in Japan.  In other words the hundreds of millions of US citizens who rely on the internet spend more money for less internet quality in their work day and everyday life.  Their work life is intensified, their free time is reduced and their living standards are diminished.  With greater concentration of ownership, come greater inequalities in power and income, and a greater disparity of living standards.  All of which is obscured by the main beneficiaries – the communication barons and their political cronies.

Declining Living Standards in the Era of the Police State

‘Living’ in the deepest and most intimate sense of the term, means the ability to share ideas, feelings and experiences with individuals, families, friends and citizens  without the intrusive and pervasive presence of a punitive state apparatus.  When a state spy apparatus intercepts, collects, files, analyzes and makes a police evaluation of citizen’s communications, scientists refer to it as a police-state.  The gigantic growth of a police state and its permeation of civil society has dramatically changed for the worse the fundamental bases of inter-personal life and communications.  Police state rule, has sharply deteriorated cultural, social, political and economic living conditions.  The ‘standards’ for living have been harshly reduced.  The ‘legal’, but arbitrary, executive prerogatives of the state have been enhanced.  The parameters of the basic rights of citizens have shrunk.  As police state expenditures grow and the subjects of surveillance increase, so do budgets and taxes.

Kleptocracy:  The Highest Stage of Capitalism

Marx and Marxists for the greater part of the 19th and 20th century, focused on capital’s exploitation of labor and the resources of overseas colonies and neo-colonies.  In the 21st century a new more dynamic and totally parasitic form of economy has emerged based in the dominant financial sector.  Kleptocrats engaged in large-scale, perpetual financial swindles and the pillage of the public treasury greatly impoverish  small  investors, and the pension funds of  employees and workers.

For the better part of two decades, major financial institutions have been engaged in systematic large scale swindles, involving the sale of fraudulent financial packets (dubbed ironically “securities”), profiteering based on insider trading and other illicit activity which is prejudicial to productive activity, investors, tax payers, salary, and wage workers.

Every major investment banks in the US and Europe has been repeatedly investigated, fined and rarely prosecuted.  They pay a relatively light fine and return to criminal activity.  Looking only at the mega-swindles, involving hundreds of billions of dollars, we would include Enron, the Information Tech “bubble” of the 1990’s to 2000, the Home Mortgage fraud, the Barron, Lehman and Bear Sterns scam. In the run-up to the 2008-9 financial crash , Goldman Sachs, JP Morgan, Wells Fargo, Bank of America were part of the “pump and dump” of low grade home mortgage bonds and equities.  The swindlers are recidivists and are so because of the complicity of top Government officials at every moment.  State officials design the rules promoting Kleptocracy (deregulation), suspend safeguards, provide tax incentives, and eliminate risk via trillion dollar bailouts of the biggest investment kleptocrats when the swindlers cannibalize their assets and run out of new victims to swindle.

Under kleptocratic capitalism the apex of the system is occupied by the top fifty investment banks, hedge funds and speculators who ‘make markets’.  They determine what ‘stocks or investment objects are targeted, to be pumped or dumped, at what rate and for what period of time.  The entire activity of the kleptocratic elite has nothing to do with financing the ‘real economy’.  Kleptocrats creates paper ‘values’ – paper assets at paper prices, for real victims and huge profits.  The kleptocratic system operates like a chain.  Kleptocratic speculators extract the savings and investments of a second tier of financial houses. They draw on real resources:  savings, trust and pension funds.  The second tier speculators are the ‘bag men’ for the dominant kleptocrats and they receive a minor share of the booty in exchange for conning the savings of producers.  They write the prospectus to entice investment funds; they formulate the promise of lucrative returns. They send progress reports to clients in exchange for ‘commissions. They also ‘take the rap”, when the crises hits and bankruptcies, foreclosures and scams unfold.

The pension funds, the individual trusts and savings of workers and employees, resulting from decades of creating value in the real economy, forms the base of the pyramid.  They have no influence on the political officials who promote, protect and bailout the kleptocrats.  Under the kleptocratic elite ideology of “too big to fail”, the state eliminates all the risk for the klepto’s and imposes the losses on the second tier, who pass the losses on to the wage and salaried workers as taxpayers, via trillion dollar transfers from Treasury. Investors suffer  via the loss of equity;  workers via the loss of jobs, homes, income and social services.  Given the vast chasm between the perpetual fraudulent transactions in the mega paper economy and the daily work routines at the bottom, there is great uncertainty, volatility, and insecurity in the work-life of the wage and salaried classes.  The uncertainty and capriciousness of the ‘normal’ capitalist economic cycle, is vastly exacerbated by the turbulence caused by the mega-swindles, endless frauds and crooked trades, endemic to the kleptocratic stage of capital.

Kleptocrats and Militarists Together:  They Shall Overcome

Just as kleptocrats rule the paper economy, political confidence men and women engage in imperial wars prejudicing the real economy.  Imperial militarists extract wealth from the Treasury (the taxpayer) via perpetual political swindles.  Imperial invasions and interventions of sovereign countries are ‘sold’ to the taxpayers as “wars on terror”; non-nuclear Iran is sold as a nuclear threat; the violent overthrow of the democratically elected Ukraine government by a pro Washington junta is sold as a “democratic transition”.  Just as the kleptocracy’s “driving force” is repeated, large scale swindles, so the governing militarist elite’s “driving force” is the perpetual need to engage in warfare.

The ‘bridge’ between the kleptocrats and the militarists is the respectable financial press (Financial Times (FT), the Wall Street Journal(WSJ).  They publicize and praise high level paper transactions (buy outs and mergers) and encourage imperial warfare everywhere and all the time.  They editorialize in favor of wars which destroys lucrative trade and investment markets in the real economy because they are aligned with the kleptocrats   linked to the paper economy.  The Financial Times should change its name to the Military Times.  The editors and columnists have supported wars destroying the Libyan, Iraq, Syrian and Ukrainian economies and back sanctions prejudicing trade with Iran.  The financial press no longer promotes market relations of the real economy; it is embedded in the paper economy of the kleptos.

Kleptocratic activities have become ‘routinized’ and based on advanced technology and have created highly respected billionaires.  Even as I write today (4/14/14) the FT reports that ‘insiders at some of the hottest private and publically traded web companies sold big personal stakes before the slump in stock companies’ (my emphasis) taking advantage of a bubble of their own creation (“pump”) to reap billions at the expense of small investors.  Tell it to Jeff Bezos, CEO of Amazon, and Sheryl Sandberg, CEO of Facebook, who sold at the pre-slump peak, prior to the tech bubble bursting

Domestic Corporate Debt and Overseas Corporate Tax Havens

According to Standards and Poor (S and P), the rating agency, “the biggest US companies have added significantly to their debts during the past three years, at the same time as corporate cash piles have increased” (FT 4/14/14).  The total cash holding of the 1,100 companies rated by S and P rose by $204 billion to 1.23 trillion between 2010-13.  However, during the same time span their gross debts grew fivefold, rising from $748 billion to $4 trillion.  Their net debt (gross debt minus cash holdings) rose 24 percent to $2.78 trillion.  By holding cash overseas, US corporations avoid domestic taxes – increasing fiscal pressures, the tax burden on domestic producers and workers, heightening the regressive nature of the tax system  Secondly, by loading up on domestic debt, the corporate elite crowds out local borrowers.  Piling up debt increases corporate vulnerability to bankruptcy if and when interest rates rise.  The corporate elite evading taxes via overseas cash piles include Apple, Microsoft, Cisco Systems, Chevron, and Merck among others.  All told the top 25 multi nationals account for 43 percent of the total debt (FT 4/14/14).

Hoarding profits overseas avoids taxes.  High domestic indebtedness results from the need to pay dividends and inflate returns to big shareholders.  In other words, corporate elites escape taxes and increase economic insecurity for domestic job holders, both of which contribute to a decline in the material and psychological dimensions of ‘living standards’.

Kleptocracy and Militarism:  Declining Living Standards

The rise of a powerful kleptocratic economic elite which ‘interpenetrates’ and shares power with a militarist political elite have joined forces to pillage the productive economy and the US Treasury.  Their powerful links are the main reason for heightening class inequalities, political and social insecurities.  They have driven American society into a permanent state of crises and wars. Over the past quarter century, Americans have lived through two major economic crashes, prolonged periods of stagnation and declining income, three major wars and a multitude of overt and covert military operations – all of which have eroded living standards.

Military propaganda saturates the mass media and permeates all mass spectacles. Stock reports, dominate the economic news.  Investment speculators and swindlers are presented as cultural heroes.  The gap between elite opinion and interests and those of the majority of citizens widens.

This leads politicians to greater dependence on billionaire campaign funders.  The electoral process is unabashedly and totally controlled by the economic oligarchy. The vast majority of Americans recognizes and publically admit their total lack of political influence on all public issues of interest including those privileging the kleptocrats and the warlords.

The deeply felt and pervasive malaise resulting from social impotence in vital spheres of life is the clearest expression of the decline of political living standards.  The shrinking of public involvement, the narrow focus of isolated individuals manipulating computerized gadgets , the replacement of face to face public engagement by impersonal electronic communications, are an expression of the decline of social living standards.  The rise of ethno-religious chauvinism among klepto-elites is matched by the political warlords’ reliance on systematic deception and espionage of American citizens. Warlords and kleptocrats are enclosed in privileged living enclaves, including the private appropriation of former public spaces, but their  intrusion into private communications define the diminished world of everyday life for the most Americans.  Life expectancy may have increased but human life has decreased, drastically, over the past quarter of a century.

Conclusion

Blood and gore does not drip off the Saville suited clever inside trader.  They never see or hear their victims, nor do they have an interest in them, except to fleece them collectively and anonymously.

America is ruled by a division of labor. The financial speculators, corporate tax evaders, investment bankers – the kleptocratic ruling class– pillage the treasury and productive economy.  Their political counterparts manipulate, distract and police their exploited victims – to ensure that they submit or are intimidated if they protest.

When they political elites come up short, there are the new “opiums of the people’ videos, painkillers, terror threats, entertainment and sports spectacles.

But citizens are restless– as living standards continue to decline.  Nobody believes in bailing out speculators because they are ‘too big to fail”.  Nobody trusts the political leaders who lied their way to twelve year wars, adding others along the way.  No one follows media pundit extremists in defense of kleptocrats and warlords.  Passive resistance is widespread because it is clear to most Americans that living standards are in a free fall.  Time awaits a popular backlash. Will it happen in our lifetime?