Tag Archives: Neoliberalism

In a highly indebted world, austerity is a permanent state of affairs

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By Mark Blyth

Source: Aeon

By 2010, everyone had heard the ‘austerity’ rallying cry. Immediately following the 2008 financial crisis, especially in Europe, it resounded: ‘Stimulate no more, now is the time for all to tighten!’ And tighten governments did, cutting public expenditure across continental Europe, and in the United Kingdom and the United States.

The logic behind ‘austerity’ holds that ‘the market’ – which the public had just bailed out – did not like the debt incurred when states everywhere rescued and recapitalised their banking systems. Unsurprisingly, tax revenues fell as the economy slowed and state expenditures rose. And what were once private debts on the balance sheets of banks became public debt on the balance sheet of states. Given this sorry state of affairs, states (policymakers and business leaders argued) had to take action to restore ‘business confidence’ – which is apparently always and everywhere created by cutting government spending. So governments cut.

Public debt, however, grew, because economies got smaller and grew slower the more they cut. The ‘confidence fairy’ as Paul Krugman named the expected effect, simply failed to show up. Why?

The reason is simple – and it is surprising anyone thought that anything else would happen. Imagine an economy as a sum, with a numerator and a denominator. Make total debt 100 and stick that on the top (the numerator). Make Gross Domestic Product (GDP) 100 and stick that on the bottom (the denominator) to give us a 100 per cent debt-to-GDP ratio. If you cut total spending by 20 per cent to restore ‘confidence’, the economy is ‘balanced’ at 100/80. That means the debt-to-GDP ratio of the country just went up to 120 per cent, all without the government issuing a single cent of new debt.

In short, cuts to spending in a recession make the underlying economy contract. After all, government workers have lost jobs or income, and government workers not shopping has the same effect as private sector workers not shopping. So the debt goes up as the economy shrinks further. States respond by cutting spending further. The pattern continues.

Having a common currency among different countries actually aggravates the problem because cuts in one state reverberate through many states, depressing them all. In 2008, euro area government debt as a share of the economy, including the already profligate Greeks, averaged around 65 per cent of GDP. Following budget cuts and monetary tightening (the European Central Bank twice pushed up interest rates in 2011) Euro Area government debt, by 2014, had risen to 92 per cent of GDP.

Greece is the poster child for this ‘denominator effect’. Under the auspices of ‘bailouts’ from the IMF and the EU, Greece cut more than 20 per cent of GDP in spending. It lost nearly 30 per cent in final consumption. Yet its debt increased from 103 per cent in 2006 to more than 180 per cent by 2014. That’s a 57 per cent increase in debt while spending is being cut.

Let’s look at the originating question again: how is destroying a third of the economy supposed to inspire consumer and business confidence? It won’t – unless you are a creditor – and that’s where the politics comes in.

If you are a holder of government debt (a creditor), three things hurt the value of your asset: if the inflation rate goes above the interest rate on your bond; if the exchange rate moves against you so that what the bond is worth vis-à-vis other currencies falls; and, of course, default – if the government takes the money and runs.

In the post-crisis world, despite major central banks putting trillions of dollars into the global money supply, there is almost no inflation anywhere in the developed world. Exchange rates (Brexit effects apart) are comparatively stable and ultimately move against each other relatively, so that’s not a huge worry. If the country whose debt you hold can have elections, and the public dares to vote against more budget cuts, the European Central Bank will shut down their banking system to make them revisit their choices. That’s what they did to Greece in the summer of 2015.

In this world, our present world, creditors will get paid and debtors will get squeezed. Budgets will be cut to make sure that bondholders get their money. And, in a highly indebted world, austerity – introduced as an ‘emergency’ measure to save the economy, to right the fiscal ship – becomes a permanent state of affairs.

As Britain’s former prime minister David Cameron said (standing beside a throne in a white bow-tie and tails) in 2013: ‘We need to do more with less. Not just now, but permanently.’ But here’s the question hidden in that blithe statement – are you and me part of the ‘we’ here?

Let’s go back to the huge jump in public debt that occurred when governments, ie the people, bailed out the banks. That debt was not, and is not, a liability. As difficult as it can be to make this reality part of the political conversation, public debt is an asset. Even at today’s low rates, it earns interest and retains value. No one is forced to invest in public debt, but every time bonds are issued investors show up and buy them by the truckload. By market criteria, public debt is a great investment.

But who pays for it? That would be the taxpayer. More generally, those who contribute to the payment of debts by not consuming government-produced services that have been cut. Basically, in most countries, this means that the bottom 70 per cent of the income distribution bears the cost of paying for public debt.

Over the past 25 years, to make up for chronically low wage growth, that same 70 per cent of the population has increased its personal indebtedness. Massively. Which means that in an economy deformed by austerity, they are the ones paying out – twice. With stagnant or declining wages, they have to service both the massive private debt they have accumulated to live and the public debt issued in their name.

Meanwhile, those whose assets the public bailed out – those with investible wealth, those who hold ‘all that debt’ and make money from it – do not suffer from the decline in public spending. Since they are net lenders, the hike in personal indebtedness does not trouble them either.

The result, and the situation in which we find ourselves, is a classic bad equilibrium. Those who can’t pay, and don’t earn enough, are being asked to pay the most to service debt, from which they do not and will not benefit. Those who can pay, and earn almost all the income, both contribute the least and benefit the most from ‘all that debt’.

Strip away all the electoral politics at the moment in the US, the UK, Italy, Spain and elsewhere, and that’s the underlying political economy. It’s a creditor/debtor stand-off where the creditors have the whip hand.

And yet, the more they crack the whip, the more the backlash against austerity, in all its forms, gains strength. Donald Trump, Jeremy Corbyn, Marine Le Pen, Pablo Iglesias: Left or Right, they are all riding debtor anger against creditor strength. It might be expressed as anger against, variously, ‘trade’ or ‘the elite’ or the ‘EU’. But what’s underneath all that is the politics of debt.

This is the ‘new normal’. It’s not about flat interest rates or anaemic growth rates. They are the consequences of austerity, not its causes. The new normal is the new politics of debtors versus creditors. It’s here to stay. As we already can see, it’s going to be anything but normal.

Stop Pretending the Rich Care About You

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By Dr. Bones

Source: The Conjure House

One of the terrible things about being a lone bastion of bomb-throwing, fire-starting, up-against-the-wall-fascist-killing type of Anarchism is you have to mingle and jive with the enemy. Like a Seminole off the reservation and walking into the Hard Rock Casino for the first time your nerves and mind are almost assaulted by the sheer idiocy of what we call modern living. I speak of course of the fake empathy held by rich “left” liberals and their kin.

Take for instance the Meryl Streep acceptance speech, widely being lauded as…well, nobody really seems to say what it is besides some rich lady getting up on stage and talking about somebody she doesn’t like. Everywhere I look online the words “heroic” are being used, how the speech was “everything.”

Why?

Because some Hollywood actress who supported a widely acknowledged War Criminal feels salty that her personal team of bourgeoisie didn’t win an election? Because she “bravely” stood up at a catered event in a dress that cost more than you or I make in a month to tell other rich people how “persecuted” they were?

I heard the speech, actually sat down and watched it. No where is she saying that the United States is some fascist superpower, that we’ve fucked up the world and Donald Trump is set to make it even worse; she’s merely upset it’s not bombing the ever-living shit out of Syria with silk gloves on.

These people are not your goddamn comrades, they are not far away intellectuals that only need to read “the bread book” to figure out where they’ve gone wrong. These are the same people who RALLIED around a woman that called Black children “super-predators” for godsake!

These creatures, these slimy denizens of far off nooks and crannies filled with champagne and $100,000 fundraisers are absolutely wedded to the same system that produced Donald Trump in the first place. They are not looking to rock the boat, they are not feeling sorry for foreign-born people and outsiders when they declare anything not on TV as “fake news” from spooky ole’ Russia and casually muse how many megatons it might take to wipe Moscow off the fucking map.

How about that speech to a bunch of bankers where Hillary makes clear her support for a no-fly zone over Syria would end up turning its people into hamburger meat?

“They’re getting more sophisticated thanks to Russian imports. To have a no-fly zone you have to take out all of the air defense, many of which are located in populated areas.  So our missiles, even if they are standoff missiles so we’re not putting our pilots at risk—you’re going to kill a lot of Syrians.”

Where was the concern for foreign lives then?

Hollywood “care” for the most “at risk” is merely an act, a feigned empathy that is designed to make you forget that when push comes to shove they will make sure their money in tax-free offshore accounts stays safe rather than fund homeless shelters or soup kitchens.

They are as deceitful and treacherous as their cousins on the Right are stupid and violent. They are the Athenian merchants hailing their own empire while criticizing the growth of Sparta.

“Disrespect invites disrespect. Violence incites violence,” says Meryl, clutching her pearls amid other American aristocrats whose lives depend on the ongoing exploitation of millions. I looked twice to see if the fucking Romanovs or Marie Antoinette had possessed the woman but alas, she was spirit free. She is so out of touch she seems bewildered that anybody might disagree or even dislike the esteemed patricians she’s speaking to.

From where exactly does Meryl think the rage of the Red States comes from, their desire for change at any cost? Could it be the strip-mining of American manufacturing?

“The story changed dramatically in 2000. Since then, the U.S. has shed 5 million manufacturing jobs, a fact opponents of free trade mention often…

Since the 1960s, manufacturing has always paid substantially more than the minimum wage. Even today, the manufacturing jobs that remain average $20.17 an hour. That’s nearly three times the federal minimum wage.”

The fall in American standards of living?

“Today the average worker makes $8.50/hour — more than 57% less than in 1970. And since the average wage directly determines the standard of living of our society, we can see that the average standard of living in the U.S. has plummeted by over 57% over a span of 40 years.”

The obscene growth in CEO profits while Millennials earn less than their parents did?

“U.S. CEOs of major companies earned 20 times more than a typical worker in 1965; this ratio grew to 29.9-to-1 in 1978 and 58.7-to-1 by 1989, and then it surged in the 1990s to hit 376.1-to-1 by the end of the 1990s recovery in 2000. The fall in the stock market after 2000 reduced CEO stock-related pay (e.g., options) and caused CEO compensation to tumble until 2002 and 2003. CEO compensation recovered to a level of 345.3 times worker pay by 2007, almost back to its 2000 level. The financial crisis in 2008 and accompanying stock market decline reduced CEO compensation after 2007–2008, as discussed above, and the CEO-to-worker compensation ratio fell in tandem. By 2014, the stock market had recouped all of the value it lost following the financial crisis. Similarly, CEO compensation had grown from its 2009 low, and the CEO-to-worker compensation ratio in 2014 had recovered to 303.4-to-1, a rise of 107.6 since 2009.”

“Single young people are getting poorer compared to the average population even those with dependent children, with stagnating disposable income and onerous living costs pressing down on prosperity.

New data accessed by the Guardian reveals that singletons aged 25 to 29 in eight rich countries – the US, UK, Australia, Canada, Spain, Italy, France and Germany – have become poorer over the last 20 years compared with the average population, and unattached young adults are finding it harder than ever to set up on their own.”

All facts conveniently left out of Meryl’s hard-hitting critique. The Left abandoned the working class for 50 years in favor of upper-middle class kids in college who spent more time dying their hair than reading Marx or even Stirner. NAFTA, a hellish neo-liberal agreement that looted Mexico to fatten the profits of American corporations, was drawn up not by some scary Republican tyrant but the “cool” Democrat and blowjob-aficionado Bill Clinton.

“During NAFTA, Mexico has had the slowest rate of economic growth than [with] any other previous economic strategy since the 1930s. From 1994 to 2013, Mexico’s gross domestic product per capita has grown at a paltry rate of 0.89 percent per year.” Additionally, “During NAFTA, Mexico’s economy grew much slower than almost every Latin American country. So to say that NAFTA has benefited the Mexican economy is also a myth. It has boosted trade and investment, but this has not translated into meaningful growth that generates jobs. One of the problems that NAFTA has generated is basically an exporting economy for transnational corporations, not for the Mexican industry per se.”

It turns out that not only did NAFTA, “flood Mexico with imported corn and cheap grains from the United States,” but “it also destroyed Mexico’s own industries,” according to Perez-Rocha.”

Where THE FUCK was Hollywood for that? For Libya? For Fast and Furious? For literally any of the ongoing despicable behavior this godforsaken Imperium has exported to millions of innocent human beings across the globe for the last eight fucking years?

Meryl Streep, and the millions of well-to-do liberals like her, want to live in a world where every McDonald’s is turned into a Panera, where every Wal-Mart blossoms into a Target. Sure you still work there, and you have no organizing rights and your pay is shitty, BUT at least your owners give money to gay charities and recycle!

Hooray ethical consumption! Never mind the suicide nets around those factories, did you know for every shirt you buy we’ll give $5 to help feed silverback gorillas? I mean, we don’t know how it works, and we can’t really say HOW we feed them but…but you can feel good about the shirt!

These people are only allies in the sense that they discredit our other enemies. Anybody that wants to shit on Donald Trump has my blessing but to pretend that they actually desire anything close to an increase in economic quality is a farce.

They are merely rich people that don’t want to feel guilty about being rich.

Don’t worry Meryl, as the US economy continues to take a shit and standards of living race to the bottom, more and more of us will be more than happy to help you overcome your feelings of guilt.

By seizing and redistributing the excesses that vex you so.

 

Gonzo journalism at no cost is my gift to you. Want to help keep me from starving to death or buy me a beer? Do me a favor and make a donation of any size and I’ll promise not to haunt you when I die.

Neoliberalism and The Globalization of War: America’s Hegemonic Project

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By Prof Michel Chossudovsky

Source: GlobalResearch.ca

The world is at a dangerous crossroads.  The United States and its allies have launched a military adventure which threatens the future of humanity. Major military and covert intelligence operations are being undertaken simultaneously in the Middle East, Eastern Europe, sub-Saharan Africa, Central Asia and the Far East. The US-NATO military agenda combines both major theater operations as well as covert actions geared towards destabilizing sovereign states.

America’s hegemonic project is to destabilize and destroy countries through acts of war, covert operations in support of terrorist organizations, regime change and economic warfare. The latter includes the imposition of deadly macro-economic reforms on indebted countries as well the manipulation of financial markets, the engineered  collapse of national currencies, the privatization of State property, the imposition of economic sanctions, the triggering of inflation and black markets.

The economic dimensions of  this military agenda must be clearly understood. War and Globalization are intimately related. These military and intelligence operations are implemented alongside a process of economic and political destabilization targeting specific countries in all major regions of World.

Neoliberalism is an integral part of this foreign policy agenda. It constitutes an all encompassing mechanism of  economic destabilization. Since the 1997 Asian crisis, the IMF-World Bank structural adjustment program (SAP) has evolved towards a broader framework which consists in ultimately undermining national governments’ ability to formulate and implement national economic and social policies.

In turn, the demise of national sovereignty was also facilitated by the instatement of the World Trade Organization (WTO) in 1995, evolving towards the global trading agreements (TTIP and TPP) which (if adopted) would essentially transfer state policy entirely into the hands of corporations. In recent years, neoliberalism has extend its grip from the so-called developing countries to the developed countries of both Eastern and Western Europe. Bankruptcy programs have been set in motion. Island, Portugal, Greece, Ireland, etc, have been the target of  sweeping austerity measures coupled with the privatization of key sectors of the national economy.

The global economic crisis is intimately related to America’s hegemonic agenda. In the US and the EU, a  spiralling defense budget backlashes on the civilian sectors of economic activity. “War is Good for Business”: the powerful financial groups which routinely manipulate stock markets, currency and commodity markets, are also promoting the continuation and escalation of the Middle East war. A worldwide process of impoverishment is an integral part of the New World Order agenda.

Beyond the Globalization of Poverty 

Historically, impoverishment of large sectors of the World population has been engineered through the imposition of IMF-style macro-economic reforms. Yet, in the course of the last 15 years, a new destructive phase has been set in motion. The World has moved beyond the “globalization of poverty”: countries are transformed in open territories,

State institutions collapse, schools and hospitals are closed down, the legal system disintegrates, borders are redefined, broad sectors of economic activity including agriculture and manufacturing are precipitated into bankruptcy,  all of which ultimately leads to a process of social collapse, exclusion and destruction of human life including the outbreak of famines, the displacement of entire populations (refugee crisis).

This “second stage” goes beyond the process of impoverishment instigated in the early 1980s by creditors and international financial institutions. In this regard, mass poverty resulting from macro-economic reform sets the stage of  a process of outright destruction of human life.

In turn, under conditions of widespread unemployment, the costs of labor in developing countries has plummeted. The driving force of the global economy is luxury consumption and the weapons industry.

The New World Order

Broadly speaking, the main corporate actors of the New World Order are

• Wall Street and the Western banking conglomerates including its offshore money laundering facilities, tax havens, hedge funds and secret accounts,

• the Military Industrial Complex regrouping major “defense contractors”, security and mercenary companies, intelligence outfits, on contract to the Pentagon;

• the Anglo-American Oil and Energy Giants,

• The Biotech Conglomerates, which increasingly control agriculture and the food chain;

• Big Pharma,

• The Communication Giants  and Media conglomerates, which constitute the propaganda arm of the New World Order.

There is of course overlap, between Big Pharma and the Weapons industry, the oil conglomerates and Wall Street, etc.

These various corporate entities interact with government bodies, international financial institutions, US intelligence.  The state structure has evolved towards what Peter Dale Scott calls the “Deep State”, integrated by covert intelligence bodies, think tanks, secret councils and consultative bodies, where important New World Order decisions are ultimately reached on behalf of powerful corporate interests.

In turn, intelligence operatives increasingly permeate the United Nations including its specialized agencies, nongovernmental organizations, trade unions, political parties.

What this means is that the executive and legislature constitute a smokescreen, a mechanism for providing political legitimacy to decisions taken by the corporate establishment behind closed doors.

Media Propaganda

The corporate  media, which constitutes the propaganda arm of the New World Order, has a long history whereby intelligence ops oversee the news chain. In turn, the corporate media serves the useful purpose of obfuscating war crimes, of presenting a humanitarian narrative which upholds the legitimacy of politicians in high office.

Acts of war and economic destabilization are granted legitimacy. War is presented as a peace-keeping undertaking.

Both the global economy as well as the political fabric of Western capitalism have become criminalized. The judicial apparatus at a national level as well the various international human rights tribunals and criminal courts serve the useful function of upholding the legitimacy of US-NATO led wars and human rights violations.

Destabilizing Competing Poles of Capitalist Development

There are of course significant divisions and capitalist rivalry within the corporate establishment. In the post Cold War era, the US hegemonic project consists in destabilizing competing poles of capitalist development including China, Russia and Iran as well as countries such as India, Brazil and Argentina.

In recent developments, the US has also exerted pressure on the capitalist structures of the member states of the European Union. Washington exerts influence in the election of heads of State including Germany and France, which are increasingly aligned with Washington.

The monetary dimensions are crucial. The international financial system established under Bretton Woods prevails. The global financial apparatus is dollarized. The powers of money creation are used as a mechanism to appropriate real economy assets. Speculative financial trade has become an instrument of enrichment at the expense of the real economy. Excess corporate profits and multibillion dollar speculative earnings (deposited in tax free corporate charities) are also recycled towards the corporate control of politicians, civil society organizations, not to mention scientists and intellectuals. It’s called corruption, co-optation, fraud.

Latin America: The Transition towards a “Democratic Dictatorship”

In Latin America, the military dictatorships of the 1960s and 1970s have in large part been replaced by US proxy regimes, i.e. a democratic dictatorship has been installed which ensures continuity. At the same time the ruling elites in Latin America have remoulded. They have become increasingly integrated into the logic of global capitalism, requiring an acceptance of the US hegemonic project.

Macro-economic reform has been conducive to the impoverishment of  the entire Latin america region.

In the course of the last 40 years, impoverishment has been triggered by hyperinflation, starting with the 1973 military coup in Chile and the devastating reforms of the 1980s and early 1990s.

The implementation of these deadly economic reforms including sweeping privatization, trade deregulation, etc. is coordinated in liaison with US intelligence ops, including the “Dirty war” and Operation Condor, the Contra insurrection in Nicaragua, etc.

The development of a new and privileged elite integrated into the structures of Western investment and consumerism has emerged. Regime change has been launched against a number of Latin American countries.

Any attempt to introduce reforms which departs from the neoliberal consensus is the object of “dirty tricks” including acts of infiltration, smear campaigns, political assassinations, interference in national elections and covert operations to foment social divisions. This process inevitably requires corruption and cooptation at the highest levels of government as well as within the corporate and financial establishment. In some countries of the region it hinges on the criminalization of the state, the legitimacy of money laundering and the protection of the drug trade.

 

The above text is an English summary of Prof. Michel Chossudovsky’s Presentation, National Autonomous University of Nicaragua, May 17, 2016. This presentation took place following the granting of a Doctor Honoris Causa in Humanities to Professor Chossudovsky by the National Autonomous University of Nicaragua (UNAN)

‘Then We Will Fight in the Shade’ – A Guide to Winning the Media Wars

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By Michael Krieger

Source: Liberty Blitzkrieg

Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.

– Sun Tzu, The Art of War

The ongoing battle between independent, alternative media and legacy corporate-government sponsored propaganda media is in full swing following Donald Trump’s victory in the 2016 election. While I’m no big fan of Trump, his win has so emotionally damaged the U.S. status quo they have begun to lash out in a hysterical and careless manner against those they feel prevented Her Highness, Hillary Clinton, from ascending to the throne.

The escalation of this fight, which I have referred to as “The Media Wars” since the summer, was easy to foresee. As I noted in the post, Questioning Hillary’s Health is No Conspiracy Theory:

As I look at the landscape in 2016 to-date, I observe emergent signs that alternative media is finally beginning to take over from the legacy mainstream media when it comes to impact and influence. The mainstream media (unlike with John McCain in 2008), had decided that Hillary Clinton’s health was not an issue and chose not to pursue it. Many in the alternative media world took a different position, and due to mainstream media’s failure to inform the American public for decades, the alternative media drove that issue to the top of the news cycle. That’s power.

This is an incredibly big deal, and the mainstream media intuitively knows what it means. It means a total loss of legitimately, prestige and power. All of which is well deserved of course.

So here’s the bottom line. 2016 represents the true beginning of what I would call the Media Wars. Alternative media is now capable of driving the news cycle. Mainstream media now has no choice but to fight back, and fight back it will. It will fight back dirty. This is going to get very ugly, but by the time the dust has settled, I think much of the mainstream media will be left as a shell of its former self.

2016 was the year when alternative, independent media went from being merely influential, to affecting the outcome of a Presidential election. As was widely reported, basically every single newspaper in the nation endorsed Hillary Clinton for President. The fact she lost anyway represented the greatest middle finger to the media (and the status quo generally) doled out by the American public in at least a generation.

While genuinely fake Macedonia-based news sites certainly garnered a lot of clicks (and revenue) by inventing ridiculous stories, anyone who really thinks this is what led to Hillary’s defeat is simply in denial. We all know that independent websites taking Hillary to task on her very real and very deplorable track record of being a compulsive liar is what was truly decisive. The mainstream media knows this, which is why they haven’t actually been focusing on censoring provably fake news sites, but rather have been promoting an agenda to lump any non-establishment perspectives within the umbrella of “fake news” in order to destroy their competition and regain an upper hand in the national narrative. If those of us who value independent media want to thwart this nefarious plan, we need to fully understand what these cretins are up to.

To that end, I want to turn your attention to one of the best articles I’ve read on the topic. Published at Counterpunch and titled, Manufacturing Normality, here are a few excerpts (definitely make sure to read the entire thing):

Sometime circa mid-November, in the wake of Hillary Clinton’s defeat (i.e., the beginning of the end of democracy), the self-appointed Guardians of Reality, better known as the corporate media, launched a worldwide marketing campaign against the evil and perfidious scourge of “fake news.” This campaign is now at a fever pitch. Media outlets throughout the empire are pumping out daily dire warnings of the imminent, existential threat to our freedom posed by the “fake news” menace. This isn’t the just the dissemination of disinformation, propaganda, and so on, that’s been going on for thousands of years … Truth itself is under attack. The very foundations of Reality are shaking.

Who’s behind this “fake news” menace? Well, Putin, naturally, but not just Putin. It appears to be the work of a vast conspiracy of virulent anti-establishment types, ultra-alt-rightists, ultra-leftists, libertarian retirees, armchair socialists, Sandernistas, Corbynistas, ontological terrorists, fascism normalizers, poorly educated anti-Globalism freaks, and just garden variety Clinton-haters.

As I suggested in these pages previously, what we are experiencing is the pathologization (or the “abnormalization”) of political dissent, i.e., the systematic stigmatization of any and all forms of non-compliance with neoliberal consensus reality. Political distinctions like “left” and “right” are disappearing, and are being replaced by imponderable distinctions like “normal” and “abnormal,” “true” and “false,” and “real” and “fake.” Such distinctions do not lend themselves to argument. They are proffered to us as axiomatic truths, empirical facts which no normal person would ever dream of contradicting.

In place of competing political philosophies, the neoliberal intelligentsia is substituting a simpler choice, “normality” or “abnormality.” The nature of the “abnormality” varies according to what is being stigmatized. Today it’s “Corbyn the anti-Semite,” tomorrow it’s “Sanders the racist crackpot,” or “Trump the Manchurian candidate,” or whatever. That the smears themselves are indiscriminate (and, in many instances, totally ridiculous) belies the effectiveness of the broader strategy, which is simply to abnormalize the target and whatever he or she represents. It makes no difference whether one is smeared as a racist, as Sanders was during the primaries, or as an anti-Semite, as Corbyn has been, or a fascist, as Trump has relentlessly been, or peddlers of Russian propaganda, as Truthout, CounterPunch, Naked Capitalism, and a number of other publications have been … the message is, they are somehow “not normal.”

Why is this any different from the shameless smear jobs the press has been doing on people since the invention of the press and shameless smear jobs? Well, hold on, because I’m about to tell you. Mostly it has to do with words, especially binary oppositions like “real” and “fake,” and “normal” and “abnormal,” which are, of course, essentially meaningless … their value being purely tactical. Which is to say they denote nothing. They are weapons deployed by a dominant group to enforce conformity to its consensus reality. This is how they’re being used at the moment.

The meaningless binary oppositions that the neoliberal intelligentsia and the corporate media are supplanting traditional opposing political philosophies with (i.e., normal/abnormal, real/fake), in addition to stigmatizing a diversity of sources of non-conforming information and ideas, are also restructuring our consensus reality as a conceptual territory in which anyone thinking, writing, or speaking outside the mainstream is deemed some kind of “deviant,” or “extremist,” or some other form of social pariah. Again, it doesn’t matter what kind, as “deviance” in itself is the point.

Actually, the opposite of deviance is the point. Because this is how “normality” is manufactured. And how consensus reality as a whole is manufactured … and how the manufacturing process is concealed.

The above hits the nails entirely on the head. It also explains why it took the Washington Post two weeks to even address the fact that it published a fake news article about “fake news.” Here’s how The Washington Post is “taking responsibility.”

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While absolutely pathetic, the editor’s note is equally telling in its sloppiness and arrogance. For instance, the article was a such a gross piece of journalistic malpractice, the only honest, professional move by the paper would be to fully retract the story and apologize; yet The Washington Post didn’t do that. Why?

The reason is because the paper and its editors knew exactly what they were doing with the publication and promotion of this nonsensical fake news hit-piece. Sure, they’re now a bit embarrassed because they were called out by pretty much everybody, but the intent all along was to tie independent media sites with absolutely no connection to Russia, to Russia, in a desperate attempt to recapture the public narrative via blacklists and tech company censorship.

As an aside, for specifics on how the status quo is attempting to use developers and social media companies to censor alternative opinion under the guise of fighting “fake news,” read this excellent article published at Naked Capitalism: Witch Hunt: “Fake News” Software Touted by CBS Smears Naked Capitalism, ShadowProof, TruthDig, Others; Creator Admits He Made Up Who Went on Hit List.

Now that we know what they are up to, how worried should we be? Although I’m extremely optimistic about the future of decentralized, independent media, and the proliferation of individual voices generally, it’s quite obvious legacy media gatekeepers will not go down without a fight. The good news is they are the ones who are on the defensive, not us. They are the ones who are battling on our terms, not the other way around. A great example of this can be seen in how the “fake news” meme has been turned around against the mainstream media to great effect. As I tweeted earlier today:

It is when you get desperate, scared and panicky that you make the biggest mistakes, and the legacy media is currently desperate, scared and panicky.  As Napoleon Bonaparte allegedly said:

“Never interrupt your enemy when he is making a mistake.”

Whether or not he actually said them, those words still ring true. We mustn’t get in the way of the legacy media’s inevitable self-destruction. Part of this means that we do not self-destruct in the process. We need to recognize that there’s a reason independent, alternative media is winning the battle of ideas in the first place. For all the warts, mistakes and bad actors, the emergence of the internet is indeed the historical equivalent of the invention of the printing press on steroids.

Only a clueless self-important elitist actually believes that the smartest, most informed people in America are the pundits on tv and the journalists employed by the mainstream media. With a handful of companies and a few oligarchs in charge, you’d have to be the most naive fool on earth to not understand that legacy media is driven by well defined narratives, and that these narratives are not in your best interest. The rest of us understand that the Internet has served as a much needed countervailing force, and has been an incredible blessing to human knowledge, connectivity and the marketplace of ideas. Just because some people can’t distinguish truth from fiction, doesn’t negate the incredible progress that decentralized information dissemination provides. It is only those who do not wish to engage in public debate on the issues themselves who want to censor stuff. The rest of us are more than happy to have an open discussion.

Many of us have spent years, if not decades, building up our online reputations and we should be careful not to squander all we have gained. There will be attempts at co-option, explicitly and otherwise. Be on guard. There will be hit-pieces and smear attempts. Stay cool and fight back from a position of strength and calm. However, I believe the greatest threat comes from the ever present danger of self-inflicted error. Part of the reason independent, alternative media has been so successful is legacy media has made it easy to look good by being so obviously captured, puerile and propagandistic. We must continue to be better than they are. As such, we must be more honest in our actions, less hypocritical in our analysis of events, and just more ethical overall. Given the competition, this shouldn’t be difficult.

Another way the status quo will fight back is by attacking our means of surviving financially, which means readers must be prepared to donate to your favorite sites more than ever before (you can support Liberty Blitzkrieg here). The other way will be to prevent our content from appearing on social media sites or search engines, or when it does appear, it will come with a warning. If this is the tactic they choose, it’ll be relatively easy to fight back.

Ten years ago it would’ve been hard to counter such a strategy, but not today. The cat is simply too far out of the bag. Too many of us reach too many people, and many of the people we reach are smart and influential. We have already sufficiently infiltrated and influenced the public discourse, so denying us a voice is no longer an option. If Facebook or Google start presenting Liberty Blitzkrieg, Zerohedge, or Naked Capitalism with warning labels, the intelligent amongst us with see right through this tactic and become disgusted.

So let me end this with a warning to Facebook, Google, and all the other tech behemoths. You start this fight at your own risk. Any disingenuous attempt to smear genuine, independent media websites via blacklists and censorship will ultimately harm you more than it harms us. In a misguided attempt to destroy us, you will destroy yourselves. Tread carefully and be on the right side of history.

To everyone else, stay strong. My writing would be irrelevant without you. It is not alternative media writers who will inflict the final blow against legacy media, it will be you, the readers. We are in this together and dependent on each other. Together we will win.

For related articles, see:

Obama Enters the Media Wars – Why His Recent Attack on Free Speech is So Dangerous and Radical

Hillary Clinton Enters the Media Wars

The Death of Mainstream Media

Liberty Blitzkrieg Included on Washington Post Highlighted Hit List of “Russian Propaganda” Websites

Additional Thoughts on “Fake News,” The Washington Post, and the Absence of Real Journalism

If you enjoyed this post, and want to contribute to genuine, independent media, consider visiting Liberty Blitzkrieg’s Support Page.

In Liberty,
Michael Krieger

Understanding Evil: From Globalism To Pizzagate

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By Brandon Smith

Source: Alt-Market.com

I have spent the better part of the last 10 years working diligently to investigate and relate information on economics and geopolitical discourse for the liberty movement. However, long before I delved into these subjects my primary interests of study were the human mind and the human “soul” (yes, I’m using a spiritual term).

My fascination with economics and sociopolitical events has always been rooted in the human element. That is to say, while economics is often treated as a mathematical and statistical field, it is also driven by psychology. To know the behavior of man is to know the future of all his endeavors, good or evil.

Evil is what we are specifically here to discuss. I have touched on the issue in various articles in the past including Are Globalists Evil Or Just Misunderstood, but with extreme tensions taking shape this year in light of the U.S. election as well as the exploding online community investigation of “Pizzagate,” I am compelled to examine it once again.

I will not be grappling with this issue from a particularly religious perspective. Evil applies to everyone regardless of their belief system, or even their lack of belief. Evil is secular in its influence.

The first and most important thing to understand is this — evil is NOT simply a social or religious construct, it is an inherent element of the human psyche. Carl Gustav Jung was one of the few psychologists in history to dare write extensively on the issue of evil from a scientific perspective as well as a metaphysical perspective.  I highly recommend a book of his collected works on this subject titled ‘Jung On Evil’, edited by Murray Stein, for those who are interested in a deeper view.

To summarize, Jung found that much of the foundations of human behavior are rooted in inborn psychological contents or “archetypes.”  Contrary to the position of Sigmund Freud, Jung argued that while our environment may affect our behavior to a certain extent, it does not make us who we are. Rather, we are born with our own individual personality and grow into our inherent characteristics over time. Jung also found that there are universally present elements of human psychology. That is to say, almost every human being on the planet shares certain truths and certain natural predilections.

The concepts of good and evil, moral and immoral, are present in us from birth and are mostly the same regardless of where we are born, what time in history we are born and to what culture we are born. Good and evil are shared subjective experiences.  It is this observable psychological fact (among others) that leads me to believe in the idea of a creative design — a god.  Again, though, elaborating on god is beyond the scope of this article.

To me, this should be rather comforting to people, even atheists.  For if there is observable evidence of creative design, then it would follow that there may very well be a reason for all the trials and horrors that we experience as a species.  Our lives, our failures and our accomplishments are not random and meaningless.  We are striving toward something, whether we recognize it or not.  It may be beyond our comprehension at this time, but it is there.

Evil does not exist in a vacuum; with evil there is always good, if one looks for it in the right places.

Most people are readily equipped to recognize evil when they see it directly.  What they are not equipped for and must learn from environment is how to recognize evil disguised as righteousness.  The most heinous acts in history are almost always presented as a moral obligation — a path towards some “greater good.”  Inherent conscience, though, IS the greater good, and any ideology that steps away from the boundaries of conscience will inevitably lead to disaster.

The concept of globalism is one of these ideologies that crosses the line of conscience and pontificates to us about a “superior method” of living.  It relies on taboo, rather than moral compass, and there is a big difference between the two.

When we pursue a “greater good” as individuals or as a society, the means are just as vital as the ends.  The ends NEVER justify the means.  Never.  For if we abandon our core principles and commit atrocities in the name of “peace,” safety or survival, then we have forsaken the very things which make us worthy of peace and safety and survival.  A monster that devours in the name of peace is still a monster.

Globalism tells us that the collective is more important than the individual, that the individual owes society a debt and that fealty to society in every respect is the payment for that debt.  But inherent archetypes and conscience tell us differently.  They tell us that society is only ever as healthy as the individuals within it, that society is only as free and vibrant as the participants.  As the individual is demeaned and enslaved, the collective crumbles into mediocrity.

Globalism also tells us that humanity’s greatest potential cannot be reached without collectivism and centralization.  The assertion is that the more single-minded a society is in its pursuits the more likely it is to effectively achieve its goals.  To this end, globalism seeks to erase all sovereignty. For now its proponents claim they only wish to remove nations and borders from the social equation, but such collectivism never stops there.  Eventually, they will tell us that individualism represents another nefarious “border” that prevents the group from becoming fully realized.

At the heart of collectivism is the idea that human beings are “blank slates;” that we are born empty and are completely dependent on our environment in order to learn what is right and wrong and how to be good people or good citizens.  The environment becomes the arbiter of decency, rather than conscience, and whoever controls the environment, by extension, becomes god.

If the masses are convinced of this narrative then moral relativity is only a short step away. It is the abandonment of inborn conscience that ultimately results in evil. In my view, this is exactly why the so called “elites” are pressing for globalism in the first place. Their end game is not just centralization of all power into a one world edifice, but the suppression and eradication of conscience, and thus, all that is good.

To see where this leads we must look at the behaviors of the elites themselves, which brings us to “Pizzagate.”

The exposure by Wikileaks during the election cycle of what appear to be coded emails sent between John Podesta and friends has created a burning undercurrent in the alternative media. The emails consistently use odd and out of context “pizza” references, and independent investigations have discovered a wide array connections between political elites like Hillary Clinton and John Podesta to James Alefantis, the owner of a pizza parlor in Washington D.C. called Comet Ping Pong. Alefantis, for reasons that make little sense to me, is listed as number 49 on GQ’s Most Powerful People In Washington list.

The assertion according to circumstantial evidence including the disturbing child and cannibalism artwork collections of the Podestas has been that Comet Ping Pong is somehow at the center of a child pedophilia network serving the politically connected. Both Comet Ping Pong and a pizza establishment two doors down called Besta Pizza use symbols in their logos and menus that are listed on the FBI’s unclassified documentation on pedophilia symbolism, which does not help matters.

Some of the best documentation of the Pizzagate scandal that I have seen so far has been done by David Seaman, a former mainstream journalist gone rogue. Here is his YouTube page.

I do recommend everyone at least look at the evidence he and others present. I went into the issue rather skeptical, but was surprised by the sheer amount of weirdness and evidence regarding Comet Pizza.  There is a problem with Pizzagate that is difficult to overcome, however; namely the fact that to my knowledge no victims have come forward.  This is not to say there has been no crime, but anyone hoping to convince the general public of wrong-doing in this kind of scenario is going to have a very hard time without a victim to reference.

The problem is doubly difficult now that an armed man was arrested on the premises of Comet Ping Pong while “researching” the claims of child trafficking.  Undoubtedly, the mainstream media will declare the very investigation “dangerous conspiracy theory.”  Whether this will persuade the public to ignore it, or compel them to look into it, remains to be seen.

I fully realize the amount of confusion surrounding Pizzagate and the assertions by some that it is a “pysop” designed to undermine the alternative media.  This is a foolish notion, in my view.  The mainstream media is dying, this is unavoidable.  The alternative media is a network of sources based on the power of choice and cemented in the concept of investigative research.  The reader participates in the alternative media by learning all available information and positions and deciding for himself what is the most valid conclusion, if there is any conclusion to be had.  The mainstream media simply tells its readers what to think and feel based on cherry picked data.

The elites will never be able to deconstruct that kind of movement with something like a faked “pizzagate”; rather, they would be more inclined to try to co-opt and direct the alternative media as they do most institutions.  And, if elitists are using Pizzagate as fodder to trick the alternative media into looking ridiculous, then why allow elitist run social media outlets like Facebook and Reddit to shut down discussion on the issue?

The reason I am more convinced than skeptical at this stage is because this has happened before; and in past scandals of pedophilia in Washington and other political hotbeds, some victims DID come forward.

I would first reference the events of the Franklin Scandal between 1988 and 1991. The Discovery Channel even produced a documentary on it complete with interviews of alleged child victims peddled to Washington elites for the purpose of favors and blackmail.  Meant to air in 1994, the documentary was quashed before it was ever shown to the public. The only reason it can now be found is because an original copy was released without permission by parties unknown.

I would also reference the highly evidenced Westminster Pedophile Ring in the U.K., in which the U.K. government lost or destroyed at least 114 files related to the investigation.

Finally, it is disconcerting to me that the criminal enterprises of former Bear Sterns financier and convicted pedophile Jeffrey Epstein and his “Lolita Express” are mainstream knowledge, yet the public remains largely oblivious.  Bill Clinton is shown on flight logs to have flown on Epstein’s private jet at least a 26 times; the same jet that he used to procure child victims as young as 12 to entertain celebrities and billionaires on his 72 acre island called “Little Saint James”.  The fact that Donald Trump was also close friends with Epstein should raise some eyebrows – funny how the mainstream media attacked Trump on every cosmetic issue under the sun but for some reason backed away from pursuing the Epstein angle.

Where is the vast federal investigation into the people who frequented Epstein’s wretched parties?  There is none, and Epstein, though convicted of molesting a 14 year old girl and selling her into prostitution, was only slapped on the wrist with a 13 month sentence.

Accusations of pedophilia seem to follow the globalists and elitist politicians wherever they go. This does not surprise me. They often exhibit characteristics of narcissism and psychopathy, but their ideology of moral relativity is what would lead to such horrible crimes.

Evil often stems from people who are empty. When one abandons conscience, one also in many respects abandons empathy and love.  Without these elements of our psyche there is no happiness. Without them, there is nothing left but desire and gluttony.

Narcissists in particular are prone to use other people as forms of entertainment and fulfillment without concern for their humanity.  They can be vicious in nature, and when taken to the level of psychopathy, they are prone to target and abuse the most helpless of victims in order to generate a feeling of personal power.

Add in sexual addiction and aggression and narcissists become predatory in the extreme. Nothing ever truly satisfies them. When they grow tired of the normal, they quickly turn to the abnormal and eventually the criminal.  I would say that pedophilia is a natural progression of the elitist mindset; for children are the easiest and most innocent victim source, not to mention the most aberrant and forbidden, and thus the most desirable for a psychopathic deviant embracing evil impulses.

Beyond this is the even more disturbing prospect of cultism. It is not that the globalists are simply evil as individuals; if that were the case then they would present far less of a threat. The greater terror is that they are also organized. When one confronts the problem of evil head on, one quickly realizes that evil is within us all. There will always be an internal battle in every individual. Organized evil, though, is in fact the ultimate danger, and it is organized evil that must be eradicated.

For organized evil to be defeated, there must be organized good. I believe the liberty movement in particular is that good; existing in early stages, not yet complete, but good none the less.  Our championing of the non-aggression principle and individual liberty is conducive to respect for privacy, property and life.  Conscience is a core tenet of the liberty ideal, and the exact counter to organized elitism based on moral relativity.

Recognize and take solace that though we live in dark times, and evil men roam free, we are also here. We are the proper response to evil, and we have been placed here at this time for a reason. Call it fate, call it destiny, call it coincidence, call it god, call it whatever you want, but the answer to evil is us.

Freedom Rider: Black Agenda Report on the Honor Roll

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The Democrats, through their PropOrNot web site and a compliant corporate media, have targeted BAR and other sites as purveyors of Russian propaganda and partly responsible for Hillary Clinton’s defeat. We’re proud to be on their hit list. Their ludicrous neo-McCarthyism shows the Democrats are not really a party at all, but a “gigantic marketing scheme meant to keep fearful progressives in line.” And the Washington Post is revealed as a lying rag.

By Margaret Kimberly

Source: Black Agenda Report

“Obama is doing whatever he can to drum up support for the endless wars and regime change policies he ultimately failed to solidify.”

Black Agenda Report has always been dedicated to truth telling. Conversely, truth is a scarce commodity in the corporate media. They are wholly dependent on powerful people and institutions and that means they must tell lies on a constant basis. Because BAR provides analysis from a black left perspective we must wade through their falsehoods in our attempt to make sense of the world.

BAR’s commitment has not gone unnoticed. Our team is proud to be on a list of outlets accused of being purveyors of Russian government propaganda. The website Is It Propaganda or Not suddenly appeared in August of this year. No one owns up to having created it but that mystery is frankly unimportant. The site is clearly doing the work of the Democratic Party, which unsuccessfully used charges of Russian interference in American politics in the recent presidential election.

Is It Propaganda or Not is a sad attempt to continue a losing effort in the waning months of the Obama administration. The United States brooks no opposition anywhere in the world. Russia’s determination to uphold its right to self-determination made it an enemy of the voracious American appetite for control of resources and governments. When Barack Obama often said that America was the indispensable nation he meant it. George W. Bush was less eloquent when he declared “you’re either with us or against us.” Obama said the same thing as he cajoled and bullied nations to join the American imperialist effort or be run over.

The president harps on “fake news” out of desperation. He hopes to continue his imperialist legacy right up until January 20, 2017 when Donald Trump becomes president. Actually, he wants to make the case for it after Trump takes over. Obama is doing whatever he can to drum up support for the endless wars and regime change policies he ultimately failed to solidify. Trump got enough votes to claim electoral victory in part because no one except dead ender Democrats are buying what Obama is selling.

Instigating a coup in Ukraine certainly struck a blow in the 25-year long American effort at Russian subjugation and/or regime change. But Ukraine is now a shell of its former self, broke and suffering from a deadly civil war. Syria limps along after the United States, NATO, gulf monarchies and Turkey thought they could carve it up easily. It isn’t surprising that the BAR team or anyone else who called out the scoundrels would themselves be targets of official wrath, no matter how foolishly carried out.

The creation of this list is a bizarre effort to keep Donald Trump from making good on some of his campaign promises. It isn’t clear if he will act to improve relations with Russia or put an end to regime change. He also says that America should “grab the oil” but any mention of ditching years of foreign policy orthodoxy is considered a heresy that must be stamped out.

The foolishness of the Is It Propaganda or Not stunt shows why the Democratic Party has been consigned to loser status. It isn’t interested in being a political party at all. It is a gigantic marketing scheme meant to keep fearful progressives in line. The Democrats want the presidency so they can cut deals with Republicans and curry favor with elites around the world. They can’t even be bothered to campaign around the country and casually allowed Republicans to take control of state after state without even bothering to compete. All the while they convince their rank and file that they are the indispensable party in the shameless duopoly.

It is a sad spectacle to see progressives who were once champions of dialogue between nations follow the line of smear mongering and Russophobia. Now that they failed to drag Hillary Clinton to victory they are adrift with only transparent ploys to make their case. The worst fake news comes from their own mouths as they have officially reached a point of failing to fool all of the people all of the time.

If you are reading this column you already know that the corporate media tell lies for a living. They compete to act as scribes for presidents. If a president says that Iraq has weapons of mass destruction they help make the case for war. If the next president claims a right to “protect” that destroys Libya they march right along and extol the virtues of war crimes. If another nation refuses to allow itself to be victimized its leader is called a modern day Hitler who interferes in American elections. The history of American interference in elections around the world is a long sad tale that would make for a good expose. Unfortunately the people who act as White House scribes have no interest in reporting any facts. They are content to curry favor and have access to people who can make or break their careers.

Black Agenda Report and the other sites on the Democratic Party’s list are in fact the best sources of news in the country. We do not carry water for Republicans or Democrats. We are consistent in our opposition to neo-liberalism, mass incarceration, police murder, racial and other oppressions and to foreign intervention. We were never impressed with Barack Obama or the other black faces in high places. We afflict the comfortable and comfort the afflicted. Those standards put us on the honor roll of news and prove ourselves worthy of your time and attention.

 

Margaret Kimberley’s Freedom Rider column appears weekly in BAR, and is widely reprinted elsewhere. She maintains a frequently updated blog as well as at http://freedomrider.blogspot.com. Ms. Kimberley lives in New York City, and can be reached via e-Mail at Margaret.Kimberley(at)BlackAgendaReport.com.

Neoliberalism: Serving the Interests of the International Business Elitists

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By Edward S. Herman

Source: Dissident Voice

Mark Weisbrot, a co-director with Dean Baker of the Center for Economic and Policy Research (CEPR), has written an enlightening book that pulls together many of the analyses that CEPR has been producing over the past several decades. The book, Failed: What the “Experts” Got Wrong about the Global Economy, is important and useful because it provides an alternative framework of analysis to the one used by establishment experts, media and policy-makers. What is more, this alternative framework and description of reality is well supported by empirical evidence and is convincing. It is marginalized in the mainstream because it runs counter to the interests of the powerful, who over the past three decades, have successfully pushed for a neoliberal world order that scales back the earlier welfare state advances and pursues trickle-down economics and the well-being of the affluent.

In fact, an important feature of Weisbrot’s analysis is his recognition of the extent to which policy failures have flowed from biased analyses that serve a small elite and punish the majority, and that policy successes have often followed the loss of power by those serving elite interests. His first chapter is entitled “Troubles in Euroland: When the Cures Worsen the Disease,” whose central theme is that the long crisis and malperformance of Europe’s economies, and especially the weaker ones of Greece, Portugal, Spain and to a lesser extent, Italy, were in large measure the result of poor policy choices. The crisis, which dates back to 2008, was not due to high sovereign debt, which was only threateningly high in Greece, but rather the refusal of the policy-making “troika,” the European Central Bank (ECB), European Community and IMF, to carry out expansionary policies that would allow the poor countries to grow out of their deficit position.

The Fed met the U.S. crisis with an easy money program which, when combined with modest fiscal expansion efforts, quickly mitigated this crisis (although the fiscal actions fell short of what was needed for a full recovery). But the ECB refused to carry out a comparable expansion policy, and there was no Europe-wide fiscal program in the EU system. So the poor countries were forced to depend for recovery on an “internal devaluation” of cutbacks in mainly social budgets, given that external devaluations for individual countries were ruled out by the use of a common currency, the euro. This didn’t do the job, so the eurozone remained in a depressed state, even up to the present.

Weisbrot shows that this policy failure was deliberate, with the troika leaders–mainly the ECB–taking advantage of the weaker countries’ vulnerability to force on them structural and policy changes that served the interests of the international business elite. These changes, including cutbacks on public outlays for education, health care, social security, and poverty alleviation, mainly harmed ordinary citizens. So did the enforced pro-cyclical monetary and fiscal policies themselves, which produced a eurozone crisis of unemployment and foregone output that extended for six years and is still ongoing. Weisbrot points out that this policy and process was a notable application of Naomi Klein’s “shock doctrine,” according to which elites take advantage of painful developments (here macro-distress) to force policy changes that could not be obtained through a democratic process like a national political vote of approval. Weisbrot shows that the troika leaders were quite conscious of the fact that they were pursuing “reforms” that the public wouldn’t support outside of shock conditions.

This process rested on the undemocratic structure of macro-policy-making in the European community. One of neoliberalism’s instruments is an “independent” central bank, where independent means not subject to democratic control. The ECB meets that standard well, more so than the Fed; and in its statute the ECB is only required to meet a price stability objective, so it is free to ignore unemployment and even deliberately increase it. Neoliberal practice is also encouraged by the 1992 Maastricht Treaty, which placed ceilings on the size of budget deficits and total public debt (3 and 60 percent respectively). These unnecessary ceilings are often breached, but provide levers to put pressure on weaker countries.

The countries victimized by the ECB’s pressure for painful internal devaluation could in theory exit from the euro and rely on expansion via currency devaluation and newly feasible monetary and fiscal expansion. But the risks in the cutoff of aid and money market access and the turmoil in any transition are severe, and although Syriza was voted into power in Greece on an anti-austerity program and pledge, it did not see fit to exit. In this connection Weisbrot discusses the case of Argentina, which, in the midst of a calamitous recession in 2001-2002 did default on its large external debt, ended its peg of the peso to the dollar, froze bank deposit accounts, and installed controls over capital movements. This caused immediate chaos and a worsened crisis, but as Weisbrot stresses, after only a single quarter of further GDP decline (5 percent), freed of its externally imposed constraints, Argentina began its recovery, taking three and a half years to regain its pre-recession level of output, but with real growth of some 100 percent over the next 11 years. Greece, which had a peak GDP loss of 25 percent, and which is still mired in a badly depressed economy, could hardly have fared worse than Argentina if it had exited years ago. Whether that option should still be taken is debatable, and Weisbrot discusses the pros and cons without coming to a definite conclusion, but that an exit might well have a positive result is suggested by the Argentinian experience.

A major theme of Failed is the negative impact of neoliberalism on the growth of low and middle-income countries and the welfare of their people. A major chapter on “The Latin American Spring” features evidence that the triumph of neoliberalism in the years from 1980 to the end of the 1990s was a dismal economic and welfare failure, Per capita GDP growth fell from 3.3. percent per year, 1960-1980 to 0.4 percent 1980-2000, rising again to 1.8 percent in the years 2000-2014. The earlier period (1960-1980) was one of widespread government intervention in the interest of rapid economic development; the middle years were dominated by the triumph of neoliberalism, with widespread imposition of structural adjustment programs under IMF and World Bank auspices, lowering trade and investment barriers, and ruthlessly cutting back development and welfare state programs. The years 2000-2014 saw a resurgence of economic growth, but not up to the pre-Reagan years.

Weisbrot shows that the new spurt in economic growth was closely associated with the victory of leftist governments in quite a few Latin American states, starting in 1998, He also presents a great deal of evidence showing that the growth spurt resulted in major improvements in a range of human welfare indicators, like reduced infant mortality, poverty reduction, more widepread schooling, enlarged pensions, and greater income equality. Thus, for example, the Brazilian poverty rate, which had remained virtually unchanged in the eight neoliberal years before the victory of the Workers Party, saw a 55 percent drop in that rate during the years 2002-2013. Similar changes in this and other welfare measures took place in Ecuador, Bolivia and other Latin states that escaped the neoliberal trap. Although these changes brought improved lives and prospects to millions, Weisbrot points out that the U.S. mainstream has played dumb, refusing to feature and reflect on the significance of this widespread improvement in human welfare and its strange efflorescence associated with the decline in U.S. and IMF-World Bank influence in Latin America.

Weisbrot stresses the importance of democratization and policy space in these growth and welfare improvements. The ECB narrowed that policy space in the eurozone, making it difficult for national leaders to expand or otherwise help improve social conditions. This reflected the weakening of democracy in the eurozone, with the ECB, EC and IMF able to make decisions that local democratic governments would not be able to make. Similarly, the loss of power over Latin governments by the U.S. and IMF following the left political triumphs from 1998, and their record of anti-people actions and other policy failures, made for policy space. So also did the rise of China as an economic power, providing a market for Latin products and loans without political conditions. Weisbrot notes that the common orthodox position that the democratic West would be more likely to help poorer countries develop democracies as compared with what authoritarian China would likely do is fallacious. China lends widely without intervening politically. The United States has a long record of support of undemocratic regimes that will serve as its political instruments and/or provide a “favorable climate of investment.” (This writer’s The Real Terror Network was a dossier of U.S. support of National Security States in Latin America and of its active involvement in many counter-revolutionary “regime changes.”)

It is arguable that an unrecognized benefit of the Iraq and Afghanistan wars was their distracting U.S. officials from major efforts to halt the trend toward democratic government in Latin America, although their participation in the attempts at regime change in Venezuela and their successful support of an undemocratic coup in Honduras in 2009 shows that the longstanding anti-democratic policy thrust of the U.S. leadership is not dead. (Mrs. Clinton, of course, fully supported the Honduras coup. So we may see a more energetic pursuit of the traditional U.S. policy of hostility to democracy in Latin America with her election.)

Weisbrot stresses throughout the importance of per capita growth for improving the human condition. A problem with this premise is that the human race may be growing too fast for ecological survival. Weisbrot confronts this issue, arguing that while population growth is a definite negative productivity growth may on balance be a means of coping by increasing food output and lowering the cost of wind turbines, solar panels and other improvements. However, increases in incomes tend to increase the preference for meat, larger houses, and other resource depleters, so that productivity improvements may, on balance, place even more pressure on the environment.

Weisbrot is possibly over-optimistic on this front. But his book is rich in compelling analyses and data that show how the mainstream live in an Alice-In-Wonderland economic world and the important things we may do to escape that Wonderland.

 

Edward S. Herman is an economist and media analyst with a specialty in corporate and regulatory issues as well as political economy and the media. Read other articles by Edward.

Depicting Perpetual Crimes committed by Corporate Culture and its Mainstream Media

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Russian Novels Combating Global Capitalist Nightmare

By Andre Vltchek

Source: Dissident Voice

Imagine Moscow being taken over by some international corporate cartel. By a monster which has its own factories and office buildings, security services, private prisons, re-education (‘training’) centers, and its obedient mass media outlets. Imagine that it also has detailed databases on almost everyone who really matters in the capital.

Imagine that human lives suddenly don’t matter. People are only expected to produce and consume; they become fully disposable.

Imagine that the once greatly educated Russia with its legendary artists and philosophers is gradually getting reduced to an unimaginably primitive level. Suddenly, there is US pop trash flying about everywhere, and the greatest entertainment for the masses comes from watching countless television ‘reality shows’, including those that graphically depict, candidly, how both men and women are shitting and pissing in the capital’s public toilets.

That’s what you get when reading a witty, provocative and thoroughly outrageous novel by Sergei Minaev, called R.A.B.; 521 pages of it!

In all his novels, including Soulless, The Telki, Media Sapiens and R.A.B., Minaev masterfully depicts the perpetual crimes committed by corporate culture and its mainstream media. Brutally and candidly he describes an apocalyptic society constructed on the soulless, merciless and murderous principles of the modern Western-style capitalist system.

In such a world, nothing is sacred anymore. The ‘elites’ are having great fun hunting on the outskirts of the city, not for some animals, but for homeless people living in abandoned pipelines (R.A.B.). A US mainstream television news channel, together with its local counterpart, manage to trigger a military conflict between Georgia and Russia, after hiring several combat helicopters and retired soldiers, killing real people, just in order to increase their ratings. And several terrorist attacks in Moscow are being paid for and staged by other big media conglomerates (Media Sapiens).

Minaev is not crying; he is definitely far from being a ‘bleeding heart’. He is tough and cynical. His characters are mostly ruthless super-yuppies from Moscow, go-getters, living a fast life, taking drugs, partying in luxury clubs, having sex literally with everything that moves (Soulless).

But they get burned, destroyed, brought to near suicide.

They have no ideology, no political views. They laugh at, they insult everything and everybody, but deep inside they are actually suffering from a horrible void, from emptiness. In those rare moments of honesty, they admit to each other and to themselves, that they are actually still longing for at least ‘something pure and decent’, uncorrupted by the global market-fundamentalist regime and its ‘values’ and ‘culture’.

*****

In R.A.B. Minaev goes much further. His yuppies (paradoxically, the mid and upper-level managers) start a rebellion against the system. They go on strike, march through the streets, and build barricades. They begin demanding social justice. They burn down their own offices.

They do it after their Russian toy-producing company (and other companies all over the city) gets swallowed by a US-based multi-national corporation, which immediately begins dismantling all social benefits, while injecting uncertainty and fear into the workplace. A multi-national also opens a horrid toy factory on the outskirts of Moscow, which then employs desperate immigrants from the Central Asian republics.

The privately-owned mass media outlets first confront the protesters, and then follow up with pro-corporate propaganda and in the end the corporate security services and the army. Many people disappear. Others are locked up in the offices and secret prisons of the corporations, and tortured. Those who survive become ‘unemployable’, their names permanently on the blacklist.

But what does Minaev really call for? Is it a true revolution?

Yes and no. He does not believe that in the countries that have been conquered by market fundamentalism and by unbridled consumerism, a ‘real revolution’ is possible. He does not think that the people there have any ideals or any zeal left. At the same time, at least some of his characters are clearly unwilling to surrender.

It is chilling to read R.A.B. while at the same time those ‘rebellions’ in Greece, France, Spain and the U.K. are taking place.

One of the main characters of R.A.B. confronts the demonstrators: It is not a revolution! You are all parts of the system. You just want a better deal for yourself. Through this rebellion, you are actually negotiating with the cartel of the corporations. If you get what you are asking for, you’ll happily remain where you are and carry on as if nothing happened.

*****

Then Minaev does exactly what no Western writer would dare to do. He begins to argue that to destroy the system, there has to be an armed struggle. Otherwise no real change could ever be achieved.

The suppressed rebellion of the yuppies eventually triggers much a wider movement, and soon there are real battles raging in several provincial capitals.

The end of the novel is open. The main character of R.A.B. is destroyed. He loses the love of his life (in desperation she commits suicide); he has no job, no money and no place to go. But he is still alive. Russia is still alive. It is obvious that no matter what, it will never accept this monstrous system that was forced on it by the West.

*****

It all may sound like an insane fantasy, but. in fact, what Minaev writes about is not too far from the nightmares that Russia was descending into right after Gorbachev allowed the country (USSR) to fall apart, and then Yeltsin introduced unbridled privatization and gave unprecedented concessions to foreign corporations. During that period, Russia went through something that could be easily described as a social genocide. Life expectancy dropped to the levels of war-torn countries in Africa. Lawlessness ruled. All ideals were ridiculed and spat at. A big number of Russian intellectuals were bought and organized by the West into countless NGO’s. The lowest grade of Western pop and entertainment torpedoed Russian culture. During those dark days, the West finally succeeded in bringing Russia to its knees.

Not even two decades later, a new Russia is once again proud, strong and confident.

It rose to its feet, it began successfully producing again, and it underwent a tremendous and positive social transformation.

Just one week ago I returned from the Russian Far East, from the cities of Vladivostok, Khabarovsk and Petropavlovsk Kamchatski. Wherever I went, I witnessed new and impressive infrastructure. I encountered a confident, hard working nation, which was working hard to restore at least some of the socialist structures and benefits that it used to enjoy in the past.

The new, present-day Russia is much closer to China; much more impressed by the Chinese system, than by what it was forced to adopt in the past; during the “pro-Western era” which is now generally considered to be synonymous to a national disaster.

Russian writers played an important role in describing the horrors of the Gorbachev/Yeltsin years, and of the brutal global economic, political and ‘cultural’ regime injected by the West to all the corners of the Planet. From an outrageous Eduard Limonov’s novel It’s Me, Eddie to Minaev’s R.A.B., Russian literature has been daring, insulting, direct and brutally honest.

While Limonov and Minaev sell millions of copies of their books at home, their work is virtually unknown in the West. I found no English translations when searching on Amazon.com, and elsewhere.

In his New York-based Eddie, Limonov is calling openly for terrorist acts against the Western regime, while some of Minaev’s characters also believe in an armed struggle, although of a more conventional type.

Nothing is spared. When the US toy-producing corporation demands a special tax from its employees in Russia, for “helping out those poor children in the Third World”, the main character of R.A.B. thinks: “well, they can now use that money to buy coffins for children they employ and kill in Indonesia or Thailand”. When the tax goes slightly up, he comments: “now they will have enough funds to dig at least a few mass graves”.

All this is simply too outrageous for Western readers. Or more precisely, the ‘book business’ most likely ‘thinks’ that it is.

The fact remains that despite what is constantly repeated by Western propaganda, those who read Russian can clearly see and appreciate that Russian literature is actually much more free, daring and rebellious than its counterpart in the West.

When several Russian bestselling novelists are calling openly for combat against the global regime (the same regime which is, until now, at least partially, controlling the economy of their country), one has no choice but to be impressed by the level of freedom in the country which allows such work to be published and then promoted.

But in the West, you would never know all this, unless you spoke Russian. It is because in the West (and in its ‘client’ states and colonies) you are being extremely well ‘protected’ from such uncomfortable (and the regime would even say ‘dangerous’) thoughts!

 

André Vltchek is a novelist, filmmaker, and investigative journalist. He has covered wars and conflicts in dozens of countries. His latest book is Exposing Lies of the Empire.