The Mad Violence of Casino Capitalism

Posted on March 8, 2016 by Reid Mukai

By Henry Giroux

American society is morally bankrupt and politically broken, and its vision of the future appears utterly dystopian. As the United States descends into the dark abyss of an updated form of totalitarianism, the unimaginable has become imaginable in that it has become possible not only to foresee the death of the essential principles of constitutional democracy, but also the birth of what Hannah Arendt once called the horror of dark times. The politics of terror, a culture of fear, and the spectacle of violence dominate America’s cultural apparatuses and legitimate the ongoing militarization of public life and American society.

Unchecked corporate power and a massive commodification, infantilization, and depoliticization of the polity have become the totalitarian benchmarks defining American society. In part, this is due to the emergence of a brutal modern-day capitalism, or what some might call neoliberalism. This form of neoliberal capitalism is a particularly savage, cruel, and exploitative regime of oppression in which not only are the social contract, civil liberties and the commons under siege, but also the very notion of the political, if not the planet itself. The dystopian moment facing the United States, if not most of the globe, can be summed up in Fred Jameson’s contention “that it is easier to imagine the end of the world than to imagine the end of capitalism.” He goes on to say that “We can now revise that and witness the attempt to imagine capitalism by way of imagining the end of the world.”¹

One way of understanding Jameson’s comment is through the ideological and affective spaces in which the neoliberal subject is produced and market-driven ideologies are normalized. Capitalism has made a virtue out of self-interest and the pursuit of material wealth and in doing so has created a culture of shattered dreams and a landscape filled with “Broken highways, bankrupt cities, collapsing bridges, failed schools, the unemployed, the underpaid and the uninsured: all suggest a collective failure of will. These shortcomings are so endemic that we no longer know how to talk about what is wrong, much less set about repairing it.”[i]

Yet, there is a growing recognition that casino capitalism is driven by a kind of mad violence and form of self-sabotage and that if it does not come to an end what we will experience in all probability is the destruction of human life and the planet itself. Certainly, more recent scientific reports on the threat of ecological disaster from researchers at the University of Washington, NASA, and the Intergovernmental Panel on Climate Change reinforce this dystopian possibility.² The undermining of public trust and public values has now given way to a market-driven discourse that produces a society that has lost any sense of democratic vision and social purpose and in doing so resorts to state terrorism, the criminalization of social problems, and culture of cruelty. Institutions that were once defined to protect and enhance human life now function largely to punish and maim.

As Michael Yates points out throughout this book, capitalism is devoid of any sense of social responsibility and is driven by an unchecked desire to accumulate capital at all costs. As power becomes global and politics remains local, ruling elites no longer make political concessions to workers or any other group that they either exploit or consider disposable.

Security and crisis have become the new passwords for imposing a culture of fear and for imposing what Giorgio Agamben has called a permanent state of exception and a technology of government repression.[ii] A constant appeal to a state of crisis becomes the new normal for arming the police, curtailing civil liberties, expanding the punishing state, criminalizing everyday behavior, and supressing dissent. Fear now drives the major narratives that define the United States and give rise to dominant forms of power free from any sense of moral and political conviction, if not accountability.

In the midst of this dystopian nightmare, there is the deepening abyss of inequality, one that not only separates the rich from the poor, but also increasingly relegates the middle and working classes to the ranks of the precariat. Concentrations of wealth and income generate power for the financial elite and unchecked misery for most people, a fear/insecurity industry, and a growing number of social pathologies.

Michael Yates in The Great Inequality provides a road map for both understanding the registers that produce inequality as well as the magnitude of the problems it poses across a range of commanding spheres extending from health care and the political realm to the environment and education. At the same time, he exposes the myths that buttress the ideology of inequality. These include an unchecked belief in boundless economic growth, the notion that inequality is chosen freely by individuals in the market place, and the assumption that consumption is the road to happiness. Unlike a range of recent books on inequality, Yates goes beyond exposing the mechanisms that drive inequality and the panoply of commanding institutions that support it. He also provides a number of strategies that challenge the deep concentrations of wealth and power while delivering a number of formative proposals that are crucial for nurturing a radical imagination and the social movements necessary to struggle for a society that no longer equates capitalism with democracy.

As Yates makes clear throughout this book, money now engulfs everything in this new age of disposability. Moreover, when coupled with a weakening of movements to counter the generated power of capitalists, the result has been a startling increase in the influence of predatory capitalism, along with inequities in wealth, income, power, and opportunity. Such power breeds more than anti-democratic tendencies, it also imposes constraints, rules, and prohibitions on the 99 percent whose choices are increasingly limited to merely trying to survive. Capitalists are no longer willing to compromise and have expanded their use of power to dominate economic, political, and social life. For Yates, it is all the more crucial to understand how power works under the reign of global capitalism in order to grasp the magnitude of inequality, the myriad of factors that produce it, and what might be done to change it.

Accompanying the rise of a savage form of capitalism and the ever-expanding security state is the emergence of new technologies and spaces of control. One consequence is that labor power is increasing produced by machines and robotic technologies which serve to create “a large pool of more or less unemployed people.” Moreover, as new technologies produce massive pools of unused labor, it also is being used as a repressive tool for collecting “unlimited biometric and genetic information of all of its citizens.”[iii]

The ongoing attack on the working class is matched by new measures of repression and surveillance. This new weaponized face of capitalism is particularly ominous given the rise of the punishing state and the transformation of the United States from a democracy in progress to a fully developed authoritarian society. Every act of protest is now tainted, labeled by the government and mainstream media as either treasonous or viewed as a potential act of terrorism. For example, animal rights activists are put on the terrorist list. Whistleblowers such as Edward Snowden are painted as traitors. Members of the Black Lives Matter movement are put under surveillance,[iv] all electronic communication is now subject to government spying, and academics who criticize government policy are denied tenure or worse.

Under neoliberalism, public space is increasingly converted into private space undermining those sphere necessary for developing a viable sense of social responsibility, while also serving to transform citizenship into mostly an act of consumption. Under such circumstances, the notion of crisis is used both to legitimate a system of economic terrorism as well as to accentuate an increasing process of depoliticization. Within this fog of market induced paralysis, language is subject to the laws of capitalism, reduced to a commodity, and subject to the “tyranny of the moment….emaciated, impoverished, vulgarized and squeezed out of the meanings it was resumed to carry.”[v]

As the latest stage of predatory capitalism, neoliberalism is part of a broader economic and political project of restoring class power and consolidating the rapid concentration of capital, particularly financial capital.[vi] As a political project it includes “the deregulation of finance, privatization of public services, elimination and curtailment of social welfare programs, open attacks on unions, and routine violations of labor laws.”[vii] As an ideology, it casts all dimensions of life in terms of market rationality, construes profit making as the arbiter and essence of democracy, consuming as the only operable form of citizenship, and upholds the irrational belief that the market can both solve all problems and serve as a model for structuring all social relations. As a mode of governance, it produces identities, subjects, and ways of life driven by a survival-of-the fittest-ethic, grounded in the idea of the free, possessive individual, and committed to the right of ruling groups and institutions to exercise power removed from matters of ethics and social costs. As a policy and political project, it is wedded to the privatization of public services, the dismantling of the connection of private issues and public problems, the selling off of state functions, liberalization of trade in goods and capital investment, the eradication of government regulation of financial institutions and corporations, the destruction of the welfare state and unions, and the endless marketization and commodification of society.

Nothing engenders the wrath of conservatives more than the existence of the government providing a universal safety net, especially one that works, such as either Medicare or Social Security. As Yates points out, government is viewed by capitalists as an institution that gets in the way of capital. One result is a weakening of social programs and provisions. As Paul Krugman observes regarding the ongoing conservative attacks on Medicare, “The real reason conservatives want to do away with Medicare has always been political: It’s the very idea of the government providing a universal safety net that they hate, and they hate it even more when such programs are successful.”[viii] In opposition to Krugman and other liberal economists, Michael Yates argues rightly in this book that the issue is not simply preserving Medicare but eliminating the predatory system that disavows equality of wealth, power, opportunity, and health care for everyone.

Neoliberalism has put an enormous effort into creating a commanding cultural apparatus and public pedagogy in which individuals can only view themselves as consumers, embrace freedom as the right to participate in the market, and supplant issues of social responsibility for an unchecked embrace of individualism and the belief that all social relation be judged according to how they further one’s individual needs and self-interests. Matters of mutual caring, respect, and compassion for the other have given way to the limiting orbits of privatization and unrestrained self-interest, just as it is has become increasingly difficult to translate private troubles into larger social, economic, and political considerations. One consequence is that it has become more difficult for people to debate and question neoliberal hegemony and the widespread misery it produces for young people, the poor, middle class, workers, and other segments of society– now considered disposable under neoliberal regimes which are governed by a survival-of-the fittest ethos, largely imposed by the ruling economic and political elite. Unable to make their voices heard and lacking any viable representation in the process makes clear the degree to which the American public, in particular, are suffering under a democratic deficit producing a profound dissatisfaction that does not always translate into an understanding of how neoliberal capitalism has destroyed democracy or what it might mean to understand and challenge its diverse apparatuses of persuasion and power. Clearly, the surge of popularity behind the presidential candidacy of a buffoon such as Donald Trump testifies to both a deep seated desire for change and the forms it can take when emotion replaces reason and any viable analysis of capitalism and its effects seem to be absent from a popular sensibility.

What Michael Yates makes clear in this incisive book on inequality is that democratic values, commitments, integrity, and struggles are under assault from a wide range of sites in an age of intensified violence and disposability. Throughout the book he weaves a set of narratives and critiques in which he lays bare the anti-democratic tendencies that are on display in a growing age of lawlessness and disposability. He not only makes clear that inequality is not good for the economy, social bonds, the environment, politics, and democracy, Yates also argues that capitalism in the current historical moment is marked by an age that thrives on racism, xenophobia, the purported existence of an alleged culture of criminality, and a massive system of inequality that affects all aspects of society. Worth repeating is that at the center of this book, unlike so many others tackling inequality, is an attempt to map a number of modalities that give shape and purpose to widespread disparities in wealth and income, including the underlying forces behind inequality, how it works to secure class power, how it undermines almost every viable foundation needed for a sustainable democracy, and what it might mean to develop a plan of action to produce the radical imagination and corresponding modes of agency and practice that can think and act outside of the reformist politics of capitalism.

Unlike so many other economists such as Paul Krugman and Joseph Stiglitz who address the issue of inequality, Yates refuses the argument that the system is simply out of whack and can be fixed. Nor does he believe that capitalism can be described only in terms of economic structures. Capitalism is both a symbolic pathological economy that produces particular dispositions, values, and identities as well as oppressive institutional apparatuses and economic structures. Yates goes even further arguing that capitalism is not only about authoritarian ideologies and structures, it is also about the crisis of ideas, agency, and the failure of people to react to the suffering of others and to the conditions of their own oppression. Neoliberal capitalism has no language for human suffering, moral evaluation, and social responsibility. Instead, it creates a survival-of-the fittest ethos buttressed by a discourse that is morally insensitive, sadistic, cannibalistic, and displays a hatred of those whose labor cannot be exploited, do not buy into the consumerist ethic, or are considered other by virtue of their race, class, and ethnicity. Neoliberalism is the discourse of shadow games, committed to highlighting corporate power and making invisible the suffering of others, all the while leaving those considered disposable in the dark to fend for themselves.

Yates makes visible not only the economic constraints that bear down on the poor and disposable in the neoliberal age of precarity, he also narrates the voices, conditions, hardships and suffering workers have to endure in a variety of occupations ranging from automobile workers and cruise ship workers to those who work in restaurants and as harvester on farms. He provides a number of invaluable statistics that chart the injuries of class and race under capitalism but rather than tell a story with only statistics and mind boggling data, he also provides stories that give flesh to the statistics that mark a new historical conjuncture and a wide range of hardships that render work for most people hell and produce what has been called the hidden injuries of class. Much of what he writes is informed by a decade long research trip across the United States in which he attempted to see first-hand what the effects of capitalism have been on peoples’ lives, the environment, work, unions, and other crucial spheres that inform everyday life. His keen eye is particularly riveting as he describes his teaming up with Cesar Chavez and the United Farm Workers in the 1970s and his growing disappointment with a union that increasingly betrayed its own principles.

For Yates, the capitalist system is corrupt, malicious, and needs to be replaced. Capitalism leaves no room for the language of justice, the social, or, for that matter, democracy itself. In fact, one of its major attributes is to hide its effects of power, racial injustice, militarized state violence, domestic terrorism, and new forms of disposability, especially regarding those marginalized by class and race. The grotesque inequalities produced by capitalism are too powerful, deeply rooted in the social and economic fabric, and unamenable to liberal reforms. Class disparities constitute a machinery of social death, a kind of zombie-like machine that drains life out of most of the population poisoning both existing and future generations.

The politics of disposability has gone mainstream as more and more individuals and groups are now considered surplus and vulnerable, consigned to zones of abandonment, surveillance, and incarceration. At one level, the expansive politics of disposability can be seen in the rising numbers of homeless, the growing army of debt-ridden students, the increasingly harsh treatment of immigrants, the racism that fuels the school-to-prison pipeline, and the growing attack on public servants. On another level, the politics of disposability has produced a culture of lawlessness and cruelty evident by the increasing rollback of voting rights, the war waged against women’s reproductive rights, laws that discriminate against gays, the rise of the surveillance state, and the growing militarization of local police forces. Yates argues convincingly that there is a desperate need for a new language for politics, solidarity, shared responsibilities, and democracy itself. Yates sees in the now largely departed Occupy Movement an example of a movement that used a new discourse and set of slogans to highlight inequality, make class inequities visible, and to showcase the workings of power in the hands of the financial elite. For Yates, Occupy provided a strategy that can be and is being emulated by a number of groups, especially those emerging in the black community in opposition to police violence. Such a strategy begins by asking what a real democracy looks like and how does it compare to the current society in which we live. One precondition for individual and social agency is that the horizons for change must transcend the parameters of the existing society, and the future must be configured in such a way as to not mimic the present.

What is remarkable about The Great Inequality is that Yates does not simply provide a critique of capitalism in its old and new forms, he also provides a discourse of possibility developed around a number of suggested policies and practices designed to not reform capitalism but to abolish it. This is a book that follows in the manner of Dr. Martin Luther King’s call to break the silence. In it Yates functions as a moral witness in reporting on the hardships and suffering produced by grotesque forms of inequality. As such, he reveals the dark threats that capitalism in its ruthlessly updated versions poses to the planet. Yet, his narrative is never far from either hope or a sense that there is a larger public for whom his testimony matters and that such a public is capable of collective resistance. The Great Inequality also serves to enliven the ethical imagination, and speak out for those populations now considered outcast and voiceless. Yates provides a furious reading of inequality and the larger structure of capitalism. In doing so he exhibits a keen and incisive intellect along with a welcomed sense of righteous fury.

Notes.

[i] Tony Judt, Ill Fares the Land, (New York, N.Y.: The Penguin Press, 2010), p. 12.

[ii] Giorgio Agamben, “The Security State and a theory of destituent power,” Philosophers for Change, (February 25, 2014). Online:

The security state and a theory of destituent power

[iii] Ibid., Agamben, “The Security State and a theory of destituent power,”

[iv] George Joseph, “Exclusive: feds regularly monitored black lives matter since ferguson,” Intercept (July 24, 2015). Online: https://firstlook.org/theintercept/2015/07/24/documents-show-department-homeland-security-monitoring-black-lives-matter-since-ferguson/; Deirdre Fulton, “Exposed: Big Brother Targets Black Lives:Government spying can be an ‘effective way to chill protest movements,’ warns Center for Constitutional Rights,” CommonDreams (July 24, 2015). Online: http://www.commondreams.org/news/2015/07/24/exposed-big-brother-targets-black-lives

[v] Zygmunt Bauman and Leonidas Donskis, Moral Blindness: The loss of Sensitivity in Liquid Modernity, (Cambridge, UK: Polity Press, 2013), p. 46.

[vi] I have taken up the issue of neoliberalism extensively in Henry A. Giroux, Against the Terror of Neoliberalism (Boulder: Paradigm, 2008) . See also, David Harvey, A Brief History of Neoliberalism (New York: Oxford University Press, 2007); Manfred B. Steger and Ravi K. Roy, Neoliberalism: A Very Short Introduction (New York: Oxford University Press, 2010); Gerad Dumenil and Dominique Levy, The Crisis of Neoliberalism (Cambridge: Harvard University Press, 2011). Henry A. Giroux, Twilight of the Social (Boulder: Paradigm, 2013); Henry A. Giroux, and in Against the Violence of Organized Forgetting: Beyond America’s Disimagination Machine (San Francisco: City Lights, 2014);

Wendy Brown, Undoing the Demos: Neoliberalism’s Stealth Revolution (Cambridge: Zone Books 2015).

[vii] Michael D. Yates, “Occupy Wall Street and the Significance of Political Slogans,” Counterpunch, (February 27, 2013). Online:http://www.counterpunch.org/2013/02/27/occupy-wall-street-and-the-significance-of-political-slogans/

[viii] Paul Krugman, “Zombies Against Medicare,” New York Times (July 27, 2015). Online: http://www.nytimes.com/2015/07/27/opinion/zombies-against-medicare.html?_r=0

This essay is excerpted from the introduction to The Great Inequality by Michael D. Yates.

Henry A. Giroux currently holds the McMaster University Chair for Scholarship in the Public Interest in the English and Cultural Studies Department and a Distinguished Visiting Professorship at Ryerson University. His most recent books are America’s Education Deficit and the War on Youth (Monthly Review Press, 2013) and Neoliberalism’s War on Higher Education (Haymarket Press, 2014). His web site is www.henryagiroux.com.

The Age of Authoritarianism: Government of the Politicians, by the Military, for the Corporations

Posted on March 4, 2016 by Reid Mukai

By John W. Whitehead

Source: The Rutherford Institute

“I was astonished, bewildered. This was America, a country where, whatever its faults, people could speak, write, assemble, demonstrate without fear. It was in the Constitution, the Bill of Rights. We were a democracy… But I knew it wasn’t a dream; there was a painful lump on the side of my head… The state and its police were not neutral referees in a society of contending interests. They were on the side of the rich and powerful. Free speech? Try it and the police will be there with their horses, their clubs, their guns, to stop you. From that moment on, I was no longer a liberal, a believer in the self-correcting character of American democracy. I was a radical, believing that something fundamental was wrong in this country—not just the existence of poverty amidst great wealth, not just the horrible treatment of black people, but something rotten at the root. The situation required not just a new president or new laws, but an uprooting of the old order, the introduction of a new kind of society—cooperative, peaceful, egalitarian.” ― Historian Howard Zinn

America is at a crossroads.

History may show that from this point forward, we will have left behind any semblance of constitutional government and entered into a militaristic state where all citizens are suspects and security trumps freedom.

Certainly, this is a time when government officials operate off their own inscrutable, self-serving playbook with little in the way of checks and balances, while American citizens are subjected to all manner of indignities and violations with little hope of defending themselves.

As I make clear in my book Battlefield America: The War on the American People, we have moved beyond the era of representative government and entered a new age—the age of authoritarianism. Even with its constantly shifting terrain, this topsy-turvy travesty of law and government has become America’s new normal.

Don’t believe me?

Let me take you on a brief guided tour, but prepare yourself. The landscape is particularly disheartening to anyone who remembers what America used to be.

The Executive Branch: Whether it’s the Obama administration’s war on whistleblowers, the systematic surveillance of journalists and regular citizens, the continued operation of Guantanamo Bay, or the occupation of Afghanistan, Barack Obama has surpassed his predecessors in terms of his abuse of the Constitution and the rule of law. President Obama, like many of his predecessors, has routinely disregarded the Constitution when it has suited his purposes, operating largely above the law and behind a veil of secrecy, executive orders and specious legal justifications. Rest assured that no matter who wins this next presidential election, very little will change. The policies of the American police state will continue.

The Legislative Branch: It is not overstating matters to say that Congress may well be the most self-serving, semi-corrupt institution in America. Abuses of office run the gamut from elected representatives neglecting their constituencies to engaging in self-serving practices, including the misuse of eminent domain, earmarking hundreds of millions of dollars in federal contracting in return for personal gain and campaign contributions, having inappropriate ties to lobbyist groups and incorrectly or incompletely disclosing financial information. Pork barrel spending, hastily passed legislation, partisan bickering, a skewed work ethic, graft and moral turpitude have all contributed to the public’s increasing dissatisfaction with congressional leadership. No wonder 86 percent of Americans disapprove of the job Congress is doing.

The Judicial Branch: The Supreme Court was intended to be an institution established to intervene and protect the people against the government and its agents when they overstep their bounds. Yet through their deference to police power, preference for security over freedom, and evisceration of our most basic rights for the sake of order and expediency, the justices of the United States Supreme Court have become the guardians of the American police state in which we now live. As a result, sound judgment and justice have largely taken a back seat to legalism, statism and elitism, while preserving the rights of the people has been deprioritized and made to play second fiddle to both governmental and corporate interests.

Shadow Government: America’s next president will inherit more than a bitterly divided nation teetering on the brink of financial catastrophe when he or she assumes office. He or she will also inherit a shadow government, one that is fully operational and staffed by unelected officials who are, in essence, running the country. Referred to as the Deep State, this shadow government is comprised of unelected government bureaucrats, corporations, contractors, paper-pushers, and button-pushers who are actually calling the shots behind the scenes right now.

Law Enforcement: By and large the term “law enforcement” encompasses all agents within a militarized police state, including the military, local police, and the various agencies such as the Secret Service, FBI, CIA, NSA, etc. Having been given the green light to probe, poke, pinch, taser, search, seize, strip and generally manhandle anyone they see fit in almost any circumstance, all with the general blessing of the courts, America’s law enforcement officials, no longer mere servants of the people entrusted with keeping the peace but now extensions of the military, are part of an elite ruling class dependent on keeping the masses corralled, under control, and treated like suspects and enemies rather than citizens. In the latest move to insulate police from charges of misconduct, Virginia lawmakers are considering legislation to keep police officers’ names secret, ostensibly creating secret police forces.

A Suspect Surveillance Society: Every dystopian sci-fi film we’ve ever seen is suddenly converging into this present moment in a dangerous trifecta between science, technology and a government that wants to be all-seeing, all-knowing and all-powerful. By tapping into your phone lines and cell phone communications, the government knows what you say. By uploading all of your emails, opening your mail, and reading your Facebook posts and text messages, the government knows what you write. By monitoring your movements with the use of license plate readers, surveillance cameras and other tracking devices, the government knows where you go. By churning through all of the detritus of your life—what you read, where you go, what you say—the government can predict what you will do. By mapping the synapses in your brain, scientists—and in turn, the government—will soon know what you remember. And by accessing your DNA, the government will soon know everything else about you that they don’t already know: your family chart, your ancestry, what you look like, your health history, your inclination to follow orders or chart your own course, etc. Consequently, in the face of DNA evidence that places us at the scene of a crime, behavior sensing technology that interprets our body temperature and facial tics as suspicious, and government surveillance devices that cross-check our biometrics, license plates and DNA against a growing database of unsolved crimes and potential criminals, we are no longer “innocent until proven guilty.”

Military Empire: America’s endless global wars and burgeoning military empire—funded by taxpayer dollars—have depleted our resources, over-extended our military and increased our similarities to the Roman Empire and its eventual demise. The U.S. now operates approximately 800 military bases in foreign countries around the globe at an annual cost of at least $156 billion. The consequences of financing a global military presence are dire. In fact, David Walker, former comptroller general of the U.S., believes there are “striking similarities” between America’s current situation and the factors that contributed to the fall of Rome, including “declining moral values and political civility at home, an over-confident and over-extended military in foreign lands and fiscal irresponsibility by the central government.”

I haven’t even touched on the corporate state, the military industrial complex, SWAT team raids, invasive surveillance technology, zero tolerance policies in the schools, overcriminalization, or privatized prisons, to name just a few, but what I have touched on should be enough to show that the landscape of our freedoms has already changed dramatically from what it once was and will no doubt continue to deteriorate unless Americans can find a way to wrest back control of their government and reclaim their freedoms.

That brings me to the final and most important factor in bringing about America’s shift into authoritarianism: “we the people.” We are the government. Thus, if the government has become a tyrannical agency, it is because we have allowed it to happen, either through our inaction or our blind trust.

Essentially, there are four camps of thought among the citizenry when it comes to holding the government accountable. Which camp you fall into says a lot about your view of government—or, at least, your view of whichever administration happens to be in power at the time.

In the first camp are those who trust the government to do the right thing, despite the government’s repeated failures in this department. In the second camp are those who not only don’t trust the government but think the government is out to get them. In the third camp are those who see government neither as an angel nor a devil, but merely as an entity that needs to be controlled, or as Thomas Jefferson phrased it, bound “down from mischief with the chains of the Constitution.”

Then there’s the fourth camp, comprised of individuals who pay little to no attention to the workings of government, so much so that they barely vote, let alone know who’s in office. Easily entertained, easily distracted, easily led, these are the ones who make the government’s job far easier than it should be.

It is easy to be diverted, distracted and amused by the antics of the presidential candidates, the pomp and circumstance of awards shows, athletic events, and entertainment news, and the feel-good evangelism that passes for religion today. What is far more difficult to face up to is the reality of life in America, where unemployment, poverty, inequality, injustice and violence by government agents are increasingly norms.

The powers-that-be want us to remain divided, alienated from each other based on our politics, our bank accounts, our religion, our race and our value systems. Yet as George Orwell observed, “The real division is not between conservatives and revolutionaries but between authoritarians and libertarians.”

The only distinction that matters anymore is where you stand in the American police state. In other words, you’re either part of the problem or part of the solution.

The Popular Myth of Democracy in America

Posted on February 16, 2016 by Reid Mukai

By Stephen Lendman

Source: SteveLendmanBlog

No nation in world history promised more and delivered less to its citizens and people worldwide. None more greatly threatens world peace – putting humanity’s survival up for grabs like never before.

None did more harm to more people globally over a longer duration. None matches the menace it represents – a presstitute media supported fascist gangster state willing to risk destroying planet earth to own it, run by a bipartisan criminal class.

From inception, America was always run by the people who own it, as first Supreme Court Chief Justice John Jay explained.

John Adams believed power belonged exclusively to the rich, well-born and able. Today it’s about monied interests in charge – deciding who holds all top positions in government, elected and appointed.

People have no say whatever. Ignore electoral politics, intended solely to deceive – manipulating people to believe new bums are more worthy than current ones.

Voting is a waste of time, accomplishing nothing. Duopoly power rules.

America is a one-party state with two wings, indistinguishable from each other on issues mattering most – militantly pro-war, pro-business, anti-populist no matter what names and faces hold top positions.

Police state laws enforced by powerful security forces at the federal, state and local levels assure wealth and privilege interests are exclusively served at the expense of public welfare.

Elections are farcical, exercises in theater, not democracy. Candidates for the nation’s top offices are cardboard cutouts of each other, distinguishable only by their disingenuous rhetoric – promises made, forgotten and broken once in office.

The public interest be damned. People are used, not served, deceived to believe politicians represent them.

Embedded power runs America, politicians serving entrenched interests exclusively, chosen for that reason. Ordinary people thinking their enfranchisement matters are living in a fantasy world.

Government of, by and for the people is the grandest of grand hoaxes. Media scoundrels perpetuate the myth with all the familiar slogans and high-minded posturing.

Jimmy Carter was right last summer calling America an “oligarchy with unlimited political bribery…a complete subversion of our political system as a payoff to major contributors.”

Republicans and Democrats operate by the same corrupted standards. “(U)nlimited) money” serves their interests at the expense of constituents they represent.

America’s system is too debauched to fix. It’s too late for tinkering around the edges.

A complete makeover is needed – a popular revolution, replacing oligarchy with grassroots democracy for the first time in the nation’s history, freed from money control.

Today is the most perilous time in world history. We have a choice.

Accept the status quo, its endless wars, oligarch control over the greater good, unprecedented wealth disparity between rich and all others, along with harsh crackdowns on nonbelievers and risk of potential humanity destroying nuclear war – or refuse any longer to tolerate a system responsible for so much harm and misery to so many people worldwide.

Survival depends on choosing wisely. What kind of world do you want to live in? What kind do you want your children to inherit?

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled “Flashpoint in Ukraine: US Drive for Hegemony Risks WW III.”

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

Poisoning Black Cities

Posted on January 28, 2016 by Reid Mukai

They drowned New Orleans. Now they have poisoned Flint, Michigan. The corporate campaign to ethnically cleanse U.S. cities knows no bounds. Michigan’s emergency financial manager law is “part of Wall Street’s tool kit to starve, bulldoze, redline, over-price, oppressively police, and even poison Black people out of the urban centers.”

By Glen Ford

Source: Black Agenda Report

“Michigan’s emergency financial manager system is the lead-tipped point of the spear that is gutting urban Black America.”

It has taken the poisoning of an entire city of 100,000 people – 52 percent of them Black – to draw national attention to the human effects of systematic corporatization of the public sphere under neoliberal U.S. capitalism. Republican Governor Rick Synder promises to “fix” the ruined water infrastructure of Flint, Michigan, now hopelessly corroded and saturated with lead – a repair that could cost as much as $1.5 billion. But, even if Snyder is forced to resign, as demonstrators demand, or is jailed, as filmmaker Michael Moore would prefer, it won’t fix the irreparably damaged brains of the city’s children or prevent a cascade of Flint-like catastrophes from unfolding across the country.

We are experiencing another Katrina moment, a dreadful epiphany in which the nature of the beast that is preying upon us becomes horrifically clear. Michigan’s emergency financial manager system – a weapon of corporate dictatorship imposed selectively on heavily Black and brown cities and school systems – is the lead-tipped point of the spear that is gutting urban Black America. It is not a unique instrument – and certainly not a Republican invention – but part of Wall Street’s tool kit to starve, bulldoze, redline, over-price, oppressively police, and even poison Black people out of the urban centers.

“A Katrina moment.”

Katrina should have been the wake-up call, a decade ago, but the hegemonic influence of the bankster-infested Democratic Party in Black America muted the warning, that the Lords of Capital were determined to eject Blacks from valuable real estate by any means necessary. After their success in expelling 100,000 Black people from New Orleans under cover of a hurricane, the corporate designers of the New American City stepped up the pace of gentrification, deploying every soft and hard tool available to them. The Black-removal machine was revved up to maximum, erasing Black urban majorities and pluralities with dizzying speed.

Having met little organized resistance, the corporate ethnic cleansers grew bolder. Republicans like Rick Synder get elected by trashing Black people; they hardly need an economic motivation for race-baiting. Corporate Democrats are more subtle. Rick Snyder wasn’t the first governor to disenfranchise Black urbanites in Michigan; his Democratic predecessor, Jennifer Granholm, a reputed “liberal,” appointed emergency managers to lord it over mostly Black Benton Harbor, Highland Park, Pontiac, and the Detroit Public Schools (where teachers have been on a sick-out to protest the ghastly conditions wrought by that bipartisan legacy of plantation-like governance).

“The Black-removal machine is erasing Black urban majorities and pluralities with dizzying speed.”

The Obama administration was a full partner in the deal that finalized the bankrupting of Detroit, providing federal funds to protect prime city assets necessary for future “revitalization” (to benefit anticipated new residents) but uttering not a word in protest of the disenfranchisement of the current, 83 percent Black population. The U.S. Justice Department failed to file a brief in support of the local NAACP’s appeal to the federal courts, that Michigan’s emergency financial manager law is racially selective, sparing financially troubled “municipalities with majority-white populations” from financial oversight while negating the votes of more than half of the state’s Black citizenry. “You do not throw out the right to vote on the basis of economic distress,” said Detroit NAACP president Rev. Dr. Wendell Anthony.

On the contrary, that’s exactly what corporations do when they set an economic or political goal that cannot be achieved at the local ballot box: they disenfranchise the uncooperative voters. In the United States, Black votes are the easiest to nullify, because huge numbers of whites don’t think Blacks are worthy of full citizenship. They take pleasure in bringing Detroit low, and in the enforced shrinking of Black New Orleans, never considering that the weakening of democratic norms will ultimately expose whites to the whims of Capital, as well. It is the oldest story in the United States.

“Corporate tentacles encroach upon the traditional powers of ‘too-Black’ cities until there is little left for the local government to tax or administer.”

White racism thus shapes the corporate model for direct rule by moneyed interests. Typically, the urban disenfranchisement process begins with the public schools, which become overwhelmingly Black and brown ahead of the general population. Locally elected inner city school boards are swept away in favor of state or direct mayoral control, while suburbanites retain the old, hands-on democratic model. (The Michigan legislature took over Detroit’s schools in 1999.) Corporate tentacles encroach upon the traditional powers of “too-Black” cities in ways not visible to ordinary citizens – through regional agencies, special industrial and development zones, targeted tax abatements, etc. – until there is little left for the local Black government to tax or administer except its largely impoverished constituents. Black governance is discredited – even though, in the last stages of urban distress, there are few resources with which to govern. The city writhes in protracted pain until “rescued” by the state for the purpose of corporate makeover (“renaissance”) and repopulation.

The corporate rulers and their minions must be held responsible for all of the pain that is inflicted on the people of intentionally distressed cities, whose residents are stripped of the means to defend themselves against the tortures, humiliations and various poisons of the state.

Leviathan and Behemoth

Posted on January 20, 2016 by Reid Mukai

By Chris Shaw

Source: Center for a Stateless Society

Introduction

The capitalist economy has gone through another shock, and the potential for another, larger one is on the horizon. While it’s seemingly in its death throes, capitalism continues to fuel growth. Under such a system we have seen a vast improvement in general living standards across the globe, despite rigged markets and the omnipresent power of the state. However, who is this growth for? While absolute poverty has been rolled back, and in many Western nations completely eliminated, we still see a large, indebted underclass, a Global South regularly sold out to the interests of capital and a system of vast wealth that only seems accessible to a privileged few. Economists may say that if we look at BRIC countries we see an equalisation of wealth and growth with the West, but these BRIC markets are used as cogs in a hegemonic state-corporate machine. Third World entrepreneurship isn’t encouraged, but rather sidelined for corporate dominance. This is a system that needs to end. The debt economy, big government, the corporate-state partnership and modern globalisation all need to end. In their place we need truly free markets, where cooperation and exchange are paramount and aren’t controlled by corporate or government interests.

Our neoliberal society is composed of corporate hegemony backed by state power. By corporate hegemony I mean the power modern capital has over governance. This isn’t just found within corporations, but within guild-like occupational boards (Lawyers and Doctors and their licencing requirements) and corporate trade unions that support the maintenance of wage labour at the expense of worker independence from the structure of capital. Any markets we see are rigged in favour of corporate interests. The major monopolies of government control make sure that markets are a tool of big business and the ability of workers to break free from this paradigm is limited if not impossible. The entry barriers to markets, the restrictions on self-employment and the continued lobbying of government for patronage and favourable legislation leads to a corrupt, crony system that relies on the indenture of the poor in favour of employers and business.

There are many libertarians who unfortunately see this system as just and fair. They see sweatshop labour as an excellent solution to Third World poverty. The idea of growth is given religious prescience, without realising cultural antecedents and the importance of community within the realm of the individual. They don’t understand the power dynamics at play, and the continued collusion of corporate and state interests. They fail to see the monopolisation of social institutions and the commodification of culture and life. The destruction of livelihoods all in the name of GDP growth. This is not a free market, but rather capitalism at work. To move away from this we need to understand that free, or freed, markets are economic organisations free from coercive control, where the individual and community are the key players and profit is not reliant on its exploitative features, but rather the ability to meet real demand.

We need to look at the current capitalist system from the anarchist perspective that I put forward in this paper. Modern capitalism is a state-based system, reliant on enforced hierarchies and the provision of false choice. Real choice would confer power on individuals and communities, while under today’s system real choice is in the hands of bureaucrats and corporate oligarchies. Chartier’s definitions of capitalism, “capitalism: an economic system that features a symbiotic relationship between big business and government”[1] and “capitalism: rule—of workplaces, society, and (if there is one) the state—by capitalists (that is, by a relatively small number of people who control investable wealth and the means of production)”[2] shines light on this conception. Rather than capitalism being a system of free markets as posited by some libertarians (Block, Mises, Hayek, etc.) it is instead a system reliant on big government and its institutions and the control of said institutions via capital.

The vulgar libertarians who view the capitalist economy as some form of free market do not understand the forms of power present. If a worker wants to start a collectively-owned business, can he? Not without huge capital requirements and regulatory hoops to jump through. How about setting up a mutual credit system with a different currency? Well there are legal tender laws that in the United State are enforced with more brutality than the punishments given for heinous crimes[3]. When talking of free markets, we need to understand that freedom is only relative to where the power lies. If it lies with the state and its subsidiaries, then freedom is conferred on large employers and corporate unions whom receive forms of state funding and favourable regulation. If it lay with individuals and communities, we would most likely see a move away from one-size-fits-all regulation, the processes of commodification through rentierism and arbitrary entry barriers.

The Regulatory Apparatus

The regulatory apparatuses found within the economy also benefit the capitalist structure. While generally seen as a bulwark against corporate power, the regulations found in an economy create entry barriers to markets and a form of implicit subsidy to big business, as these businesses rent-seek government for more regulation, allowing for a monopoly within particular economic sectors. We can see in the banking, energy, manufacturing and retail sectors that this is the case. Childs noted this in relation to the development of monopoly power in American business during the late 19th and early 20th centuries. He states “this, then, was the basic context of big business; these were the problems that it faced. How did it react? Almost unanimously, it turned to the power of the state to get what it could not get by voluntary means”[4]. In particular Childs saw this occurring in the rail industry in America during the late 19th century. Massive competition had begun in the rail industry, which massively sunk profits for established companies and encouraged many start ups and smaller competitors. As large rail companies weren’t competitive enough in this environment, they came to rely on government intervention, where regulatory boards were created staffed mostly by executives from the large rail companies.

This is what regulation is really about. It isn’t a way of protecting the hapless consumer from the ravages of a free market, but is rather a tool of corporate power that forms entry barriers and enforces particular dichotomies of ownership and organisation in an economy. Capitalism becomes a system of patronage, where corporations gain favour due to their money and power, which itself comes from the state in the first place. As Paul notes “the rich are more than happy to secure for themselves a share of the loot – for example, in the form of subsidised low-interest loans…bailouts when their risky loans go sour, or regulatory schemes that hurt their smaller competitors”[5]. Rifkin shows a similar process, describing how “the critical industries that made up the infrastructure…banded together in a mega lobby to ensure…financial underwriting, as well as industry-friendly codes, regulations, and standards to ensure market success”[6].

The regulatory apparatuses also have the effect of distorting economies of scale, decoupling supply from demand and favouring largesse in business and ownership models. Thus we see the development of high overhead costs which restrict market entry to best capitalised of entrepreneurs. By limiting competition, we see perverse operations occurring that favour the interests of business over the worker and consumer. Thus things like planned obsolescence, guaranteed markets and a continuation of private gain and socialised loss. As had been noted by Childs, private cartels were difficult to maintain. Even the rail trusts, themselves built in contrived, government-produced markets, were ravaged by competition from smaller rail providers[7] that favoured more local economies of scale. So these corporations looked to the government, who enshrined their demands into acts and legislation which created cartels that were much more easily enforced. We just need to look where wage laws, licensure laws and planning/zoning laws are coming from and who lobbies for them. Invariably its dome by corporations and their lobbying arms. We also forms of legal privilege, as in the case of limited liability and corporate personhood, which are really only accessible with very high capital costs and a developed shareholder clientele. These systems are purely artificial, and whether they would work voluntarily is not the question. Rather it is, if they are efficient, why do they need the government to provide these privileges and apparatuses. The answer is simple, they aren’t efficient.

Even when there are laws supposedly to ameliorate the effects of marketisation, as in the case of welfare and government-provided services, they are usually built on the back of resilient communities who developed their own systems, and usually end up allowing employers to pay subpar wages and benefits and lessen the strength of community relations. It builds layers onto a poor foundation. Or to put it another way, the corporate-state nexus is putting a cinderblock on toothpicks. Bureaucrats don’t fully understand the problem with this but realise it is unstable. So to stabilise it, they put more toothpicks under the cinderblock, thinking it will stabilise. However, the system is inherently unstable and propping it up denies the inevitable.

This assurance of market success shows that under a truly free market they wouldn’t exist, or if they did it would be on a much smaller scale. The regulatory web is just another power dynamic that allows for capture and control. To describe this as a free market is laughable. These processes are completely involuntary, reliant on extortion through taxation and allow for the redistribution of wealth from the poor and middle class to the rich and privileged.

The Money Monopoly

While regulation, which “far from coming against the wishes of the regulated interests, was openly welcomed by them in nearly every case”[8], is an important part of the corporate state, the original four legal monopolies (as identified by Tucker), money, land, tariffs and patents, allowed for the development of rent-seeking corporations. These four monopolies, or as I see them structural monopolies as they create the structure of the socio-economic paradigm, are fundamentals of capitalism.

The money monopoly allows for the restriction of credit and the development of debt-based models that destroy stores of value and make individuals slaves to the desires of governments and banks through modern forms of debt peonage. As Dowd notes, over the 20th century “the US dollar has lost almost 85 per cent of its purchasing power even by official government statistics; for its part, sterling has lost 98 per cent of its value over the last century”[9]. The restriction of credit coupled with the inflationary tendencies of modern fiat currencies mean the poorest are effectively forced into wage labour, as they rely on pitiable increases in nominal wages and are unable to gain any real credit for self-employment or collective worker-owned enterprises. What happens is a redistribution of wealth from the poorest to the richest. Long shows that “inflationary monetary policies on the part of central banks also tend to benefit those businesses that receive the inflated money first in the form of loans and investments, when they are still facing the old, lower prices”[10]. The pre-inflation money allows investors and banks to capitalise on new production and investment while the poorer elements of a society receive minimal benefits as the inflationary course makes its run, with prices rising and wages following later.

This also leads to massive levels of debt found currently throughout the globe, as credit instruments are used to make up for stagnant wages that can’t afford increasing land prices and subsequently rent prices, as well as an increase in the price of consumer goods that are a significant chunk of working people’s wages. The process of rent extraction via high interest rates follows from this, as “the money monopoly also includes entry barriers against cooperative banks and prohibitions against private issuance of banknotes, by which access to finance capital is restricted and interest rates are kept artificially high”[11]. Carson notes further that the elimination of controlled interest rates would lead to “significant numbers (of workers) retiring in their forties or fifties, cutting back to part-time, or starting businesses; with jobs competing for workers, the effect on bargaining power would be revolutionary”[12]. The current banking system leads to the necessitation of wage labour through restricted credit dissemination and debt-based forms of finance.

The Land Monopoly

The land monopoly is another lynchpin of capitalism. Most modern land is either nationalised or corporatised through state structures, leading to massive land centralisation and the process of land expropriation that is visible in much of the Third World. Alternative land arrangements, such as those organised by tribes and local networks, are swallowed up in this process. Many commons regimes that have existed for centuries are being eliminated in favour of the interests of capital. This process of enclosure of common lands began at “the end of the Medieval Age, when royal and feudal landowners began to enclose common lands, especially in Tudor England and Trastamara Spain. Through legal and political manoeuvres, wealthy landowners marked and hedged off sections of the commons for their own profits, impoverishing many villagers and ultimately destroying their communitarian way of life”[13]. The enclosures have continued into the 20th century, where “common lands have suffered a third, global wave of commodification and enclosure, ‘land grabbing’ spurred by the dominant neoliberal doctrine and competition for non-renewable natural resources and supported now by the evolutionary theory of land rights”[14]. The modern enclosures of land occur most noticeably in Africa and South America. We see the elimination of common land owned by native tribes and the raping of natural resources. The Niger Delta and its oil reserves show this acutely, with oil spills being common and almost no compensation to the farmers and workers who rely on the Delta for their livelihoods.

In effect this is a process of neo-colonialism pushed through via the Washington Consensus that is epitomised in international groups like the IMF and WTO. The plight of Bangladeshi workers is caused by this problem of neocolonial practices. In Bangladesh “wealthy and influential people have encroached on public lands…, often with help of officials in land-administration and management departments”[15] which has led to a result of “Many of the rural poor in Bangladesh are landless, have only small plots of land, are depending on tenancy, or sharecropping”[16]. What follows is a continuation of the development of a landless mass of cheap labour as a result of the nationalisation and corporatisation of land.

Then there are planning and zoning laws and property laws which act as a form of implicit land nationalisation in many Western countries. Among their many effects, they artificially inflate land prices, which has a knock on effect of making housing unaffordable and making the purchase of land extremely difficult for small businesses. This further encourages the process of rentierism and indebtedness as individuals have to get out mortgages or rent accommodation, and individuals looking to start a business are priced out, thus favouring large corporations. If you want to self-build a home or business, it becomes impossible. Instead a series of state-favoured land developers are able to land bank and rent out at extortionate rates. They aren’t subject to competition and making new land isn’t possible, so you create a system of patronage and favouritism, simply adding to the enforced necessitation of wage labour.

These processes of land appropriation lead to the development of land speculation via government-favoured industries, creating artificially high land prices which price out small businesses, community groups and anyone who isn’t able seek rent from the state. This speculation also fuels boom-bust cycles, with much of the credit used by investors and businesses being put into the easy investments of land and housing. This creates economic bubbles through the wide diffusion of mortgages and an increase in house and infrastructure building that isn’t necessarily needed. In London, we see this playing out with high-price apartments and high-rises that don’t address the needs of the wider population and are fueled, at least partially, via QE-induced credit. The development of a rentier society occurs. With land prices held artificially high, rich landowners are able to rent out their properties at high prices, creating economic precarity and stimulating the larger wage labour monopoly that is caused by a combination of this monopoly and the money monopoly.

The Larger Wage Labour Monopoly

As previously mentioned, credit is restricted thus funding options are limited for workers. Add to this high land prices, and the ability to buy a house or develop a business are severely restricted, developing the large pool of wage labour seen today. This obviously favours large-scale employers such as corporations who are able develop to their current size due to this wage labour monopoly. It leads to a means of surplus value, or rent, extraction. As Solow notes “one important reason for the failure of real wages to keep up with productivity is that the division of rent in industry has been shifting against the labor side for several decades”[17].

Alongside the two monopolies, the increase in precarious wage labour is compounded by the restriction of collective action and the development of monopolist unions that complement the centralised economic actors. The legislation governing strikes and the ability to make a union add to this problem, making it difficult for freelance workers to unionise and stopping the development of radical trade unions and company unions. Thatcher’s trade union reforms in the UK created such a problem as the majority of private sector unions are part of the corporate system of economic centralisation. The final nail in the coffin is the minimum wage. This creates a wage ceiling and simply allows corporations to price smaller competitors out of the market while subsequently limiting the hours and benefits workers receive. As most minimum wages aren’t enough to live on, many workers rely on debt-based credit which pushes individuals further into wage labour, creating debt-led wage slavery and maintaining a massive, centralising economic monopoly on the choice of workers.

As Solow explains, in the US “in the past 10 years productivity has increased 12.3 percent in the non-farm business sector of our economy while real compensation of labor has increased by only 5.1 percent”[18]. So what we see is a form of surplus value extraction, whereby the excess product of labour is captured by the interests of capital and removed from the compensation of labour. This can’t simply be explained away by using the marginalist critique. The value of a product is at least partially informed by its labour input. Marshall’s analysis shows that “price was determined, at any given time, by the balance between the demand and supply that actually existed at that moment. As the time factor came into play…price approached closer and closer to cost”[19] thus showing that the equilibrium of supply to demand moves from subjective criteria of value toward the input of labour in that value. Again looking at Solow’s productivity figures, the compensation of labour isn’t in proportion to production.

Hodgskin’s idea of a market artificially privileged with rents, profits and interest becomes a reality in the modern context. The increase in freelancing and labour market individuation means the expropriation of rent and the limitation of choice, particularly as unions are simply a representation of the corporate interest, particularly since the Wagner Act in America and the trade union reforms in Britain. The individualisation of labour serves to increase these artificial privileges, meaning can be paid less and thus become more reliant on debt instruments such as mortgages and credit cards to simply earn a living and have a roof over their head. This system is even more acute in the Global South, with the restriction of choice via the structural monopolies being almost explicitly enforced via the government as land in enclosed and regulations used to restrict microeconomic activity that doesn’t serve the interests of global value chains. Their human capital is monopolised, wages restricted, collective action completely banned and working conditions extremely poor. The main profit garnered from this is simply the mark-up created by internal tariffs and intellectual property (to be discussed later in this paper), which limits domestic market production and serves only the interests of capital and big business, as both the workers and consumers are given low wages and higher prices respectively.

What happens then is the construction of a monopsony situation in wages and labour, where the product of labour isn’t adequately paid, becoming widespread due to companies paying below this level. This is compounded by wage laws favoured by corporate interests, and an inability for the worker to capture this value through collective bargaining or through the means of owning one’s productive capacities due to market entry barriers that restrict self-employment and worker or community ownership. It constrains the real choice of workers and puts the power dynamics upon employers and bureaucrats.

Tariffs

The next two monopolies that Tucker highlighted further the centralisation of economic power toward corporations. Tariffs are simply a form of direct state intervention to favour domestic industry over foreign competitors. There are arguments favourable to this position, such as those by List and Chang. However, there is a significant time limit on the ability of tariffs to produce any sort of growth (usually artificially induced by state policies), and eventually many of the protected industries become bloated and begin to rely on further government subsidy.

The use of tariffs today is much more limited than it was during the mercantile years of the 17th and 18th centuries. However, one area where tariffs are still largely used is modern agriculture in the West, particularly the US and the EU. The Farm Bill in the US creates price distortions within food markets that favours large agribusiness over small, family farms. As Reitzig explains “the farm bill perpetuates the myth of cheap food. It subsidizes Big Ag so that BA can sell its food to the market cheap and you find it at the grocery store for less than you’d pay for it from your local farmer”[20]. However as “it costs the small local farmer about the same to produce the same food as the Big Ag farmer”[21], all the Farm Bill does is redistribute tax money toward large agricultural firms. The economies of scale thus get changed, with farmers forced into retail sector bulk sell offs that are increasingly inefficient and perpetuate the agricultural tariffs and subsidies.

There also forms of internal tariffs that protect large industry through direct subsidisation. For example “between 1973 and 2003, the US government paid out $74 billion in energy subsidies to promote R&D in fossil fuels and nuclear power”[22]. This was despite these companies having huge profit margins, which shows the actual profitability of these industries. They are reliant on institutions of theft to simply develop critical infrastructure as a result of their internal unproductiveness and their falling foul of the economic calculation problem. It creates a system of perverse incentives as these firms aren’t induced to work and develop in smarter, cleaner ways and instead produce the same limited output. This is corporatism at its finest, with government purposefully favouring large firms over small firms, and thus encouraging wasteful practices. Returning to farming, the EU holds similar policies, which in many ways restrict crop diversification and mean that certain farmers are favoured over others. This leads to artificially low prices which allows for retail monopolisation due to farmers being unable to sell their own product due to EU regulations which create this system. It is a continuation of the obstinate incentives that leads to overproduction, false demand and the entrenchment of economic disadvantages and inefficiencies.

Patents

Patents act in a similar way. They privilege large businesses in rigged markets and allow for centralisation and monopolisation. “The patent privilege has been used on a massive scale to promote concentration of capital, erect entry barriers, and maintain a monopoly of advanced technology in the hands of western corporations. It is hard even to imagine how much more decentralized the economy would be without it”[23]. Patents act to lock up innovation in a legal quagmire. It puts new technology into the hands of capital, limiting its distribution and creating a rentier system, where the privilege to use new technology and even knowledge is commodified by large corporations in collusion with the state.

This inability to access new technologies and knowledge creates a form of entry barrier, with smaller competitors being unable to afford this access. Most modern tech companies (Google, Apple, Microsoft) are in effect monopolists of knowledge and technology, limiting its accessibility and collecting the rent they charge on these products. Their market position becomes entrenched with restrictive data laws and copyrights that mean the passage of information is blocked by virtual, artificial toll gates that wouldn’t exist if not for coercive legislation.

Then there is the direct government subsidisation of research and development (R&D) spending that allows for large companies to reap “monopoly profits from technology it didn’t spend a penny to develop”[24]. Modern tech companies then are not only monopolists of patented of knowledge but also rentiers of technology they had no real part in developing. So while small inventors and start ups toil away trying to create a product that can only be sold on a rigged market, large firms benefit purely because of their power and the revolving door of government benefaction. Similar processes occur in military-based R&D spending, where corporations are given large grants and procurement contracts to develop military hardware and weaponry that on a freed market would not even necessarily be required by any customer or business. As Chomsky notes, in the US “the Pentagon system has long been the country’s biggest welfare program, transferring massive public funds to high-tech industry on the pretext of defense and security”[25]. These companies’ profits and growth are not then created in a market mechanism of competition and demand-led supply, but rather in a bubble of government-led protection, where they ride on the coattails of stolen innovation and forms of theft AKA patents and taxation respectively. “If they had to face the market, they’d be out selling rags or something, but they need a nanny state, a powerful nanny state to pour money into their pockets”[26].

Further, this process of patenting becomes a pure form of commodification as they remove products and ideas from their cultural origins. For example, the Human Genome Diversity Project used DNA from certain indigenous tribes in Central and South America. Some of this DNA was patented, and thus removed from the culture it came from without any sort of compensation by the HGDP and the beneficiaries of this knowledge. Biocolonialism and biopiracy are the best terms for this occurrence. By extracting culturally sensitive information and knowledge, a process of commodification occurs, and the whole concept of property, that of the sovereign ownership of the individual or collective, becomes redundant. Further the innovative capacities that supposedly come from intellectual property are limited if not completely negative. In fact the information that was patented was found to be 30% less innovative than the information released for full public use[27].

This analysis is backed by evidence from Scherer, who showed “a survey of 91 companies in which only seven ‘accorded high significance to patent protection as a factor in their R & D investments.’ Most of them described patents as “the least important of considerations.’ Most companies considered their chief motivation in R & D decisions to be ‘the necessity of remaining competitive, the desire for efficient production, and the desire to expand and diversify their sales”[28]. Thus patents and intellectual property “eliminate ‘the competitive spur for further research’ because incremental innovation based on others’ patents is prohibited, and because the holder can ‘rest on his laurels for the entire period of the patent.’ with no fear of a competitor improving his invention”[29].

Transport Subsidies

The fifth monopoly, transport subsidies, is one that has been identified by Carson. As Carson describes, “spending on transportation and communications networks from general revenues, rather than from taxes and user fees, allows big business to ‘externalize its costs’ on the public, and conceal its true operating expenses”[30]. These transportation subsidies allow for the development of large business operations, particularly in the retail and manufacturing sectors. By subsidising the movement of goods by heavy duty vehicles, it means they are given a state-based competitive advantage against smaller, local competitors.

Companies like Wal-Mart and Tesco are able to price their goods artificially cheaply as a result of not adding the transportation costs. Many of these companies actively lobbied for such infrastructure projects. When the interstate system was being built, it “had both an immediate stimulus effect on the industries that participated…oil companies, general contractors, cement manufacturers, steel companies…were among the dozens of industries involved in the building of the great interstate highway system”[31] showing the degree of corporate-state cooperation. It was because these infrastructure projects benefitted their products and models that they lobbied for them.

Of course Carson’s view of this quite US-centric. In much of Europe, particularly the UK, we see other regulations that create a very different kind of transport subsidy. While these nations do subsidise transport via taxation to pay for roads rather than using user fees or road pricing, they also have high fuel duties and regulation on forms of transport, such as regulations on truck design and usage. The fuel duties act as a subsidy in the sense that they destroy small transport firms and simply monopolise the transport industry as only larger companies can afford the higher prices. The forms of regulation mentioned mean that innovation into new vehicle design and competition between firms is limited and simply continues the dominance of particular transport and production companies that aren’t subject to market competition. Thus what we see are two different types of transport subsidies that both act to continue the current economic paradigm.

These subsidies serve to amplify economies of scale, creating national and international markets largely in the control of corporate interests. These large markets create systems of disequilibrium, with monopoly interests being able to develop oligopoly markets from which rents can be extracted. A modern example of this is the creation of HS2 in the UK. It serves as a vanity project for political and bureaucratic elites, who can gain well-paying jobs as political advisors and construction directors. It also allows for the continuation of the North-South divide, with large London-centric firms sucking out talent from the North and Midlands, at little expense to themselves. As Wellings describes it, it’s an example of externalised costs and internalised benefits, with vested interests serving to gain[32]. Economies of scale are created artificially, with competition in local markets suffering due to a project only favourable to London-based businesses. Local economies of scale, which are more natural and more open to individual considerations and supply and demand, are priced out by government intervention. Local transport projects, like roads linking market towns and local rail infrastructure, are ignored due to a lack of political prestige for politicians and their donors and lobbyists.

Road and rail subsidised by the state leads to the current economies of scale that favour large, centralised business entities. It also prices out and discourages private infrastructure projects that could actually make an economic difference by increasing competition and lowering prices, while maintaining local economies of scale which benefit large swathes of areas that currently don’t benefit from the subsidised corporate model. These three monopolies further the wage labour monopoly, by erecting entry barriers against small business and self-employment and by creating feudalistic patent regimes and transport systems that create favourable economies of scale. National markets serve larger companies and hierarchical organisation, and international markets continue to serve and enlarge this. It pushes real costs onto the consumer/taxpayer, and further creates illegitimate profits taken from oligopoly markets.

The Corporate Infrastructure

This wage labour monopoly, with the five structural monopolies feeding it, is the basis of the modern corporate dominated economy. As a result, modern corporations act as oppressive actors on the world stage, using wage slaves and forms of indebtedness to develop the massive growth seen in the 20th and 21st centuries. As Carson states “in a very real sense, every subsidy and privilege described above is a form of slavery. Slavery, simply put, is the use of coercion to live off of someone else’s labor. For example, consider the worker who pays $300 a month for a drug under patent, that would cost $30 in a free market. If he is paid $15 an hour, the eighteen hours he works every month to pay the difference are slavery. Every hour worked to pay usury on a credit card or mortgage is slavery. The hours worked to pay unnecessary distribution and marketing costs (comprising half of retail prices), because of subsidies to economic centralization, is slavery. Every additional hour someone works to meet his basic needs, because the state tilts the field in favor of the bosses and forces him to sell his labor for less than it is worth, is slavery”[33].

Then there is the system of incentives created by this corporate-state monopoly. Infrastructures are developed that maintain the inefficiencies. Rifkin’s analysis of a series of Industrial Revolutions shows this to be the case. The Second Industrial Revolution, the current economic system we live in according to Rifkin, is reliant on state-invested infrastructure and subsidisation[34]. The subsidisation of natural capital is one example of this. Roberts shows that “the total unpriced natural capital consumed by the more than 1,000 “global primary production and primary processing region-sectors” amounts to $7.3 trillion a year — 13 percent of 2009 global GDP”[35]. The term natural capital is obviously a broad, all-encompassing term. The specifics are those of the production of pollutants that is subsidised by specific tax breaks and forms of limited liability. These follow from elements of the land monopoly which means pollution becomes an externalised cost upon taxpayers, furthering the inefficiencies of a particular economic paradigm, which Rifkin calls the Second Industrial Revolution but what I would call capitalism.

The maintenance of this system means most companies that are reliant on fossil fuels and the energy and transport infrastructures that follow from them have no incentive to divest into new market ventures, but instead have an interest in resource and capital accumulation. It creates ‘revolving door’ government, where lobbyists persist in convincing policy makers for subsidies here and tax breaks there all the while relying on the rent extraction they gain from state intervention.

This process within resource extraction and energy use is more widely seen in the general production processes of capitalism. The levels of overproduction and continued consumption are fed by the structural monopolies, as well as justifying the wage labour monopoly. To fund the levels of consumption needed to continue production means people are put into a paradigm of working longer to buy more things to enjoy. Its paradoxical as you spend more time at work, thus limiting the amount of time you have to actually enjoy consumer goods. Further, as goods become more expensive due to increasing cost mark-ups and inflationary policies, and housing prices and rents go up due to land speculation and monopoly ownership, more people become reliant on debt instruments to fund their everyday lives and their increasing consumer spending. This has created a precipitous debt bubble as Steve Keen’s work has shown. It has also meant that much of the current growth seen since the Great Recession has been on the back of consumer spending, as Blanchflower has documented.

Incentives are created which lead to increasing, unnatural growth and increasing levels of debt. In particular, levels of corporate debt have skyrocketed during the recession of 2008. This is due to systemic overproduction and waste that has developed due to mass production systems used by most multinationals. The structural subsidies create this system where large production facilities with forms of guaranteed profit are needed for massive market areas, usually on a national or international level. Carson has pointed out that modern markets are hardly an example of spontaneous order and aren’t reliant on supply and demand[36]. Rather the system is reliant on a system of planning, with codified relations between suppliers and distributors and systems of guaranteed consumption through external market control in the form of internal sales tariffs and the financialisation of the economy.

Internal sales tariffs limit what stores/areas products can be sold in, and are only viable as a result of intellectual property regimes that allow for increased costs and a further disconnect between production and consumption. Financialisation on the other hand simply maintains the production systems as well as processes of commodification. It makes corporate debt a commodity, and puts value into meaningless products, which allows for more accumulation and overproduction as business isn’t rewarded for genuine wealth production and creation, which comes from artificial processes, but is rewarded rather by debt financialisation, unsustainable growth in bureaucracy and the continued expropriation of surplus value, or human capital. This also represents a commodification process, as the social relation of debt, as identified by Graeber and Martin, is put into an economistic context, with debt serving the purposes of profit and capital. The debt relationship, that’s shaped by community relations and gift-giving and receiving[37], is taken as a value of capital. And this debt is allowed to build up and shape other economic activity. Consumer purchase after consumer purchase represents this. It is encouraged, and when it slows the government takes over and funds through quantitative easing programs, allowing for the construction of bigger, more complex bubbles. It shows that corporation and government are two sides of the same coin.

We have to remember that as much as governments, corporations are just as likely to be effected by the knowledge problem. To get around, every relationship and process is effectively planned. Business to business relations, as seen in distribution and supply chains, are maintained for decades by large manufacturers so as to continue guaranteed buyers of their products. In other cases, the supply and warehousing operations are subsumed by the manufacturer, owning every process from production to sale. Global value chains are an outgrowth of this hierarchalised control and planning, with much of their success being guaranteed by government. It is dictatorial governments in the Global South (who usually have the backing of the US government and its interests) that ban collective action among labourers through extraordinarily harsh measures, it is trade agreements with their backing by Western governments that maintain artificial property rights such as patents and it is government that externalises the cost of global transportation of these goods onto the taxpayer, thus distorting economies of scale to favour the large corporations and forms of state-corporate economic planning. In other the words, the commodification and Sovietisation of the economy.

Culture Under Capitalism

A paradigm that enforces this economic hierarchy is created, where life is work and your main identity is around the soul-crushing job you inhabit. Social relations are commodified and local economic activity is strangled. The whole idea of community in the 21st century is being replaced by a centralised state and economic activity that has no interest in that community, but is inward looking, determining profit margins rather building strong societal relations. The ability to escape this paradigm is extremely limited by the coercive hand of the state. It restricts collective organising, eliminates common and private property and develops extremely insufficient systems of economic organisation.

What we’ve seen is the disembedding of markets from their cultural and social origins[38]. Relations of debt and consumption, which were as much in political institutions and based around social relations, have been expropriated by capital. Thus instead of markets forming one of many different idea of economic organisation of which it could complement, we see the neoliberal discourse of praising markets and even seeing marketisation in what have been social relations up to this day. Thus public services such as health and energy are wrapped in discourses of competition and corporate ownership. However, markets aren’t actually like this. If we look to genuinely free markets, which are few and far between, we don’t see large production and corporate ownership. Instead we see markets crafted around local institutions and genuine demand for certain goods and services. Ownership is much more decentralised. However, due to government-based price and scale distortions, culture and its institutions are brought into the marketised economy, creating the marketised society.

It leads to the development of modern consumerism, creating warped identities based around products. It kills culture and intelligence in favour of an advertised individual. Carson shows that “mass production divorces production from consumption. The rate of production is driven by the imperative of keeping the machines running at full capacity so as to minimize unit costs, rather than by customer orders. So in addition to contractual control of inputs, mass-production industry faces the imperative of guaranteeing consumption of its output by managing the consumer”[39]. The consumer is separated from the producer. Mass production means a consumer culture. Rather than supply meeting demand, demand is made to compensate for oversupply. It also creates forms of consumer inequality that mean Third World workers have almost no access to the products they help produce. The development of domestic markets in consumer goods is massively restricted via patents and tariffs.

Within the Western world there is similar consumer inequality, with a creation of an underclass who desire consumer goods that their limited wages can hardly afford. Bauman’s analysis of the London Riots in 2011 saw an element of this consumer yearning, with products like high-end trainers and flat-screen TVs being taken. Bauman notes that “from cradle to coffin we are trained and drilled to treat shops as pharmacies filled with drugs to cure or at least mitigate all illnesses and afflictions of our lives and lives in common. Shops and shopping acquire thereby a fully and truly eschatological dimension”[40]. The cultural backwater caused by modern consumerism creates a form of stigmatisation and symbol status, with haves and have nots developing into distinct classes in a consumer culture. As Bauman states “for defective consumers, those contemporary have-nots, non-shopping is the jarring and festering stigma of a life un-fulfilled — and of own nonentity and good-for-nothingness. Not just the absence of pleasure: absence of human dignity. Of life meaning”[41].

The processes of commodification amplify this systemic crisis. The divorcing of production from consumption leads to the most atomistic forms of individualism. It becomes a process of overconsumption and hoarding, without any appreciation of the product development. Cultural and societal obligations and considerations get uprooted by what is wanted and what can be bought. It puts value squarely into the hands of capital, with the determination of worth being decided in social hierarchies that follow from the enforced economic hierarchies of modern capitalism. It is a symptom of the false choice of employment or death, of work creating one’s value in life and of a market shaped not by workers, communities and cultures but by the interests capital and the state that props it up.

Conclusion

This system is massively unsustainable, and becomes more and more reliant on tax revenues to make it profitable. The price system becomes distorted, encouraging the mass production that “leads to ever-increasing demands on state services”[42]. This then shows the inefficiency of large corporations. They are as much subject to the economic calculation problem as the state. Their reliance on the theft of individual income via the taxation system means in anarchist society they are completely unviable. As a system of economic organisation “capitalism could not have survived at any point in its history without state intervention. Coercive state measures at every step have denied workers access to capital, forced them to sell their labor in a buyer’s market, and protected the centers of economic power from the dangers of the free market”[43].

In systems of anarchy, there would be an end to corporate dominance due to their inability to seek state rent and thus collapsing in their inefficiencies. As noted by Carson, there were two paths that could have been taken to organise industry and the economy. The one that was followed was “centralized production using expensive, product-specific machinery in large batches on a supply-push basis”[44]. However a better system was possible. One of “decentralized production for local markets, integrating general-purpose machinery into craft production and governed on a demand-pull basis with short production runs and frequent shifts between product lines”[45]. This would have required localised industry, networked communities and what Rifkin calls lateral, distributional, collaborative markets. Workers would be independent of capital, and have an ability to take back their surplus value. It would involve voluntary governance structures and self-organised communities. It would be an end to the corporate-state nexus.

By having this centralised system, we open the floodgates to the continuation of boom-bust cycles through monopoly government control. Since the delinking of production from consumption, there has been a development of mass production and the apparatuses that prop it up. Marx noted this particular phenomenon, with “the birth of large-scale industry this true proportion had to come to an end, and production is inevitably compelled to pass in continuous succession through vicissitudes of prosperity, depression, crisis, stagnation, renewed prosperity, and so on”[46]. This process in the end favours the capitalists. It destroys real value in an economy and allows for more government involvement. Further, it leads to capital accumulation through government subsidisation and the monopoly position many modern corporations hold within their respective markets.

It’s a process of artificial wealth accumulation and creation, backed by the five monopolies previously mentioned. High land prices, restrictive credit access and the use of interest rates to effectively distort the value of currency, the use of market entry barriers through regulations and patents and the use of transport subsidies all favour the main monopoly, that of wage labour. Because of the diminishing returns that many of these companies are finding, they are becoming increasingly reliant on the extraction of surplus value from their workers. As mentioned earlier, wage laws allow them to eliminate smaller competitors and the development of varied, precarious work contracts mean a diversification of their workforce, which allows them to reduce hours paid and thus reduce their labour costs. However, the compensation of a worker’s product isn’t necessarily met. Thus the accruing of capital simply means the extraction of rent from workers, which is enforced by the limitation of worker’s to pool their labour value and capital and develop their own industry in a truly free market.

Government is the glue which holds capitalism together. Without it, the economies of scale, the appropriation and centralisation of land and the distortion of inputs and outputs would be impossible. Without a central bank, the destructive tax of inflation wouldn’t be feasible in a competitive currency market. The redistribution of wealth and malinvestment couldn’t occur on the same scale as markets would act as a corrective against these activities. The use of tariffs and patents to lock up technology and create artificial wealth couldn’t happen without the state’s coercive power. Economic organisation is a fluid concept, that changes from place to place and people to people. What is right for one community or tribe is not what is necessarily right for another. A freed market would reflect this, as it would embed markets in pre-existing cultural/social structures and stop the developments of commodification and neo-colonialism that persist presently. This is a world free of state-action and corporate control. This is anarchism.

Bibliography

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Carson, K (2007). Studies in Mutualist Political Economy. United States: BookSurge.

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Childs, R. (1971). Big Business and the Rise of American Statism. Available: http://praxeology.net/RC-BRS.htm. Last accessed 16th Sep 2015.

de Ugarte, D. (2015). Biomedical patents reduce innovation by 30%. Available: http://blog.p2pfoundation.net/biomedical-patents-reduce-innovation-by-30/2015/09/09. Last accessed 16th Sep 2015.

Dowd, K (2014). New Private Monies. London: Institute of Economic Affairs.

Long, R. (2008). Corporations versus the Market; or, Whip Conflation Now. Available: http://www.cato-unbound.org/2008/11/10/roderick-t-long/corporations-versus-market-or-whip-conflation-now. Last accessed 15th Sep 2015.

Martin, F (2013). Money: The Unauthorised Biography. London: Bodley Head.

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Polanyi, K (2002). The Great Transformation. 2nd ed. Boston: Beacon Press.

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Rifkin, J (2011). The Third Industrial Revolution. New York: Palgrave MacMillan.

Roberts, D. (2013). None of the world’s top industries would be profitable if they paid for the natural capital they use. Available: http://grist.org/business-technology/none-of-the-worlds-top-industries-would-be-profitable-if-they-paid-for-the-natural-capital-they-use/. Last accessed 16th Sep 2015.

Shorr, I. (1996). On US Military Budgets. Available: http://www.chomsky.info/interviews/19960211.htm. Last accessed 25th Sep 2015.

Solow, R. (2015). The Future of Work. Available: http://www.psmag.com/business-economics/the-future-of-work-why-wages-arent-keeping-up. Last accessed 16th Sep 2015.

StopHS2. (2013). “Classic Example” of Vested Interests. [Online Video]. 18 November. Available from: https://www.youtube.com/watch?v=r94VP3USOuE. [Accessed: 31 October 2015].

Vivero Pol, J. (2015). Transition towards a food commons regime. Available: http://poseidon01.ssrn.com/delivery.php?ID=9851100240740070870950101221090931190350100270460840350111130010740820980970930810660540551030481120240140671180910151151060840400590600730100851021250261111. Last accessed 15th Sep 2015.

Notes:

[1] Chartier, G. 2010, 1

[2] Chartier, G. 2010, 2

[3] Dowd, K. 2014

[4] Childs, R. 1971

[5] Paul, R. 2009, 70

[6] Rifkin, J. 2011, 134

[7] Childs, R. 1971

[8] Childs, R. 1971

[9] Dowd, K. 2014, 85-86

[10] Long, R. 2008

[11] Carson, K. 2002

[12] Carson, K. 2002

[13] Vivero Pol, L. 2015, 9

[14] Vivero Pol, L. 2015, 9

[15] Richman, S. 2013

[16] Richman, S. 2013

[17] Solow, R. 2015

[18] Solow, R. 2015

[19] Carson, K. 2007, 50

[20] Reitzig, L. 2014

[21] Reitzig, L. 2014

[22] Rifkin, J. 2011, 134

[23] Carson, K. 2002

[24] Carson, K. 2002

[25] Shorr, I. 1996

[26] Shorr, I. 1996

[27] de Ugarte, D. 2015

[28] Carson, K. 2002

[29] Carson, K. 2002

[30] Carson, K. 2002

[31] Rifkin, J. 2011, 134

[32] Wellings, R. https://www.youtube.com/watch?v=r94VP3USOuE

[33] Carson, K. 2002

[34] Rifkin, J. 2011

[35] Roberts, D. 2013

[36] Carson, K. 2010

[37] Martin, F. 2013

[38] Polanyi, K. 2002

[39] Carson, K. 2010, 50

[40] Bauman, Z. 2011

[41] Bauman, Z. 2011

[42] Carson, K. 2010, 111

[43] Carson, K. 2002

[44] Carson, K. 2010

[45] Carson, K. 2010

[46] Carson, K. 2010, 256

The Psychopathy of Greed

Posted on January 3, 2016 by Reid Mukai

By Zen Gardner

Source: ZenGardner.com

I always find it interesting that people blame corporate greed for our overall condition. Sure it’s a major factor at one level, but it’s just an obvious outcropping of something much, much deeper. Sadly not that many are willing to go there.

That the entire world system is built on a capitalist system in one form or another is mind boggling. Defying our innate conscious awareness to the contrary, the signal has been given and repeatedly endorsed as well as crassly promoted that we need to gain off of each other, in each and every transaction, every exchange, in a no holds barred, dog eat dog environment.

One look at the marketing world and you get the picture. And the supposed “fittest” come out on top.

This is how and why the populace acquiesces to domination by the few. “They’re just good at what they do. They’re smarter and more motivated than the rest of us so surely they deserve to be winners in the game.”

Humanity’s being told how the game works and that this is your only option. “It’s just the way it is, so get to work and earn your salary, then invest in the game and try to get ahead and make a name and lots of money for yourself.” At which point the sharks devour the unsuspecting guppy.

Group absolved endemic greed doesn’t make it right, however justified, by any stretch of the imagination.

The Corporate “Growth” Model

It’s fully accepted that corporations need to grow. For their good, for our good, or so we’re told. It’s a fear based econo-survivalist psychological scam. Who says they need to constantly make more, for their investors’ interests or otherwise? Yet this is considered healthy in a capitalistic system, under the guise of increased jobs and benefits and a prosperous economy.

Do the employees really benefit? Do the consumers who go increasingly into debt trying to catch the materialist carrot benefit? Who really benefits?

Yet this model is accepted carte blanche as a driving force for a healthy economy. If you stand back to think about it outside of all this financial gibberish it’s completely destructive, enslaving insanity for the good of the few. And yet this model is mimicked as if it’s the paradigm of truth through every level of Pavlovian entrained economic and interpersonal commerce engagement.

Getting to the Root of the Problem

The entire system is built on a background of assumed scarcity, that there’s not enough to go around so unless you push and shove your way into a place where you “earn” your keep and beat those around you you’ll be hung out to dry.

Clever bastards. All while they sit at the top of the food chain devouring their prey.

What’s even more surreal is how those who “succeed” in making a lot of money are then considered authorities on any and every subject. Just look the Rockefeller family, one such clusterfuck among many, screwing their way up the capitalist ladder who then set up think tanks, foundations and whatnot to influence the course of humanity according to their whims.

What or who made them the “wise ones” to rule over us? Guess what: Endorsed greed, abject avarice and the resultant intoxicating money and power in the hands of a few.

Look at creeps like George Soros or Bill Gates and a plethora of other unelected plutocrats, inserted intellectuals and accepted moral and geopolitical authorities like the Pope, lap dog Kissinger or voice pet Brzezinski and the panorama of puppet heads of state. It’s insane. Never mind the Rothchilds, Carnegies, Morgans, the so-called royal families of Europe such as the Windsors and House of Orange-Nassau of the Netherlands, the Vatican or whomever is hoarding the really big bucks.

The message is the same: in their minds we and our world are owned. And they ain’t sharing nothing with the rest of us. Why? Apparently we don’t deserve it. Do you like that fate and outcome? “Everyone else is accepting it, so it must be OK”…reasons the stilted servant.

Greed – A Name You Can Trust

You’ve all heard the outlandish statistics about how few have so much in this world. Yet it is by and large accepted by quiet submission, incredible as that may seem. The problem is humanity’s acquiescence to a rigged system. While the wealth of some of these bloodline families, banking moguls and mega rich corporate thugs could feed the poor of the earth many times over, they sit on their booty and only get more oppressive.

This brings us to the psychopathy of greed, amongst many other issues. Greed is insatiable. It is a vampiristic dynamic. It only sucks and is never satisfied. Wealth soon takes a back seat to power and control, their ultimate aphrodisiac. This is what it all leads to. And this reptilian, archontic urge is never satisfied, it always wants more. At any cost to the hosts of these parasites.

The issue is that psychopathy, especially in positions of power, is not just rampant but so readily accepted. That’s where the problem exponentially compounds.

This is the heartbreaking aspect to all of this, how humanity has bought into their program and replicates these unnatural urges at every level of society, which of course their system is designed to do. And while the masses abuse each other in this same lower vibrational parasitic frequency, no one is conscious enough to realize their oppressive trendsetters are feeding off of all of humanity by the very meme they’ve put into place.

If people woke up to that one fact we’d have an overnight revolution of disengagement causing a massive resetting of how society should and could cooperate.

Conclusion – The 5 Step Program

Parasitic forces build parasitic institutions, and encourage the same in others while maintaining their dominance. Be it corporatism, capitalism, communism and socialism, fractional banking or base line competition for resources and day to day needs, this system is rigged to the core.

Agreeing to help foment this dog eat dog mentality under the guise of survival or “rightful competition” only perpetrates the problem.

To become free and help build the better world we know exists requires conscious disconnection with this systemic disease. It begins in both small and big steps. But the underlying propellant towards change is identifying the problem for what it is. A parasitic disease, promulgated by those who stand to gain, and realizing their mindset is a pathological, direly destructive one that seeks to exert its twisted idea of oligarchical as well as personal control at any expense.

Step Up

First, do your part. Realize what is transpiring before your eyes, no matter how horrid it may first appear.

Second, disengage. In any and every way possible. Just take steps in that direction and the mounting freedom it engenders will empower you to take the next step.

Third, tell others – like a house afire. Use wisdom but never hold back. The hour is late as they are entering their last phases of implementable programs and are getting desperate to throttle humanity’s awakening.

Fourth – stand strong in your convictions. Feed those convictions, strengthen them, and encourage the same in others, as the mainstream of society is a nasty polluted river we must avoid, resist, oppose and most of all penetrate and reverse with everything in us.

Fifth – Stand fast in your convictions. Live a life committed to your newfound awakened understanding….fearlessly. This presence of awakened individuals does more than we’ll ever know.

See greed for what it is, but most of all don’t comply with their fabricated hierarchical world of abuse. It’s fraudulent, manipulative, destructive and a de facto form of voluntary enslavement.

See the world for what it has become. But more importantly, see the world as it should be and operate within that paradigm. Their fabricated world of lies will then crumble at our feet.

Much love, Zen

ZenGardner.com

It’s a $cam! The American Way of War in the Twenty-First Century

Posted on December 29, 2015 by Reid Mukai

war-is-money

By Tom Engelhardt

Source: TomDispatch.com

Let’s begin with the $12 billion in shrink-wrapped $100 bills, Iraqi oil money held in the U.S. The Bush administration began flying it into Baghdad on C-130s soon after U.S. troops entered that city in April 2003. Essentially dumped into the void that had once been the Iraqi state, at least $1.2 to $1.6 billion of it was stolen and ended up years later in a mysterious bunker in Lebanon. And that’s just what happened as the starting gun went off.

It’s never ended. In 2011, the final report of the congressionally mandated Commission on Wartime Contracting estimated that somewhere between $31 billion and $60 billion taxpayer dollars had been lost to fraud and waste in the American “reconstruction” of Iraq and Afghanistan. In Iraq, for instance, there was that $75 million police academy, initially hailed “as crucial to U.S. efforts to prepare Iraqis to take control of the country’s security.” It was, however, so poorly constructed that it proved a health hazard. In 2006, “feces and urine rained from the ceilings in [its] student barracks” and that was only the beginning of its problems.

When the bad press started, Parsons Corporation, the private contractor that built it, agreed to fix it for nothing more than the princely sum already paid. A year later, a New York Timesreporter visited and found that “the ceilings are still stained with excrement, parts of the structures are crumbling, and sections of the buildings are unusable because the toilets are filthy and nonfunctioning.” This seems to have been par for the course. Typically enough, the Khan Bani Saad Correctional Facility, a $40 million prison Parsons also contracted to build, was never even finished.

And these were hardly isolated cases or problems specific to Iraq. Consider, for instance, those police stations in Afghanistan believed to be crucial to “standing up” a new security force in that country. Despite the money poured into them and endless cost overruns, many were either never completed or never built, leaving new Afghan police recruits camping out. And the police were hardly alone. Take the $3.4 million unfinished teacher-training center in Sheberghan, Afghanistan, that an Iraqi company was contracted to build (using, of course, American dollars) and from which it walked away, money in hand.

And why stick to buildings, when there were those Iraqi roads to nowhere paid for by American dollars? At least one of them did at least prove useful to insurgent groups moving their guerrillas around (like the $37 million bridge the U.S. Army Corps of Engineers built between Afghanistan and Tajikistan that helped facilitate the region’s booming drug trade in opium and heroin). In Afghanistan, Highway 1 between the capital Kabul and the southern city of Kandahar, unofficially dubbed the “highway to nowhere,” was so poorly constructed that it began crumbling in its first Afghan winter.

And don’t think that this was an aberration. The U.S. Agency for International Development (USAID) hired an American nonprofit, International Relief and Development (IRD), to oversee an ambitious road-building program meant to gain the support of rural villagers. Almost $300 million later, it could point to “less than 100 miles of gravel road completed.” Each mile of road had, by then, cost U.S. taxpayers $2.8 million, instead of the expected $290,000, while a quarter of the road-building funds reportedly went directly to IRD for administrative and staff costs. Needless to say, as the road program failed, USAID hired IRD to oversee other non-transportation projects.

In these years, the cost of reconstruction never stopped growing. In 2011, McClatchy Newsreported that “U.S. government funding for at least 15 large-scale programs and projects grew from just over $1 billion to nearly $3 billion despite the government’s questions about their effectiveness or cost.”

The Gas Station to Nowhere

So much construction and reconstruction — and so many failures. There was the chicken-processing plant built in Iraq for $2.58 million that, except in a few Potemkin-Village-like moments, never plucked a chicken and sent it to market. There was the sparkling new, 64,000-square-foot, state-of-the-art, $25 million headquarters for the U.S. military in Helmand Province, Afghanistan, that doubled in cost as it was being built and that three generals tried to stop. They were overruled because Congress had already allotted the money for it, so why not spend it, even though it would never be used? And don’t forget the $20 million that went into constructing roads and utilities for the base that was to hold it, or the$8.4 billion that went into Afghan opium-poppy-suppression and anti-drug programs and resulted in… bumper poppy crops and record opium yields, or the aid funds that somehow made their way directly into the hands of the Taliban (reputedly its second-largest funding source after those poppies).

There were the billions of dollars in aid that no one could account for, and a significant percentage of the 465,000 small arms (rifles, machine guns, grenade launchers, and the like) that the U.S. shipped to Afghanistan and simply lost track of. Most recently, there was the Task Force for Business Stability Operations, an $800-million Pentagon project to help jump-start the Afghan economy. It was shut down only six months ago and yet, in response to requests from the Special Inspector General for Afghanistan Reconstruction, the Pentagon swears that there are “no Defense Department personnel who can answer questions about” what the task force did with its money. As ProPublica’s Megan McCloskey writes, “The Pentagon’s claims are particularly surprising since Joseph Catalino, the former acting director of the task force who was with the program for two years, is still employed by the Pentagon as Senior Advisor for Special Operations and Combating Terrorism.”

Still, from that pile of unaccountable taxpayer dollars, one nearly $43 million chunk did prove traceable to a single project: the building of a compressed natural gas station. (The cost of constructing a similar gas station in neighboring Pakistan: $300,000.) Located in an area that seems to have had no infrastructure for delivering natural gas and no cars converted for the use of such fuel, it represented the only example on record in those years of a gas station to nowhere.

All of this just scratches the surface when it comes to the piles of money that were poured into an increasingly privatized version of the American way of war and, in the form ofovercharges and abuses of every sort, often simply disappeared into the pockets of the warrior corporations that entered America’s war zones. In a sense, a surprising amount of the money that the Pentagon and U.S. civilian agencies “invested” in Iraq and Afghanistan never left the United States, since it went directly into the coffers of those companies.

Clearly, Washington had gone to war like a drunk on a bender, while the domestic infrastructure began to fray. At $109 billion by 2014, the American reconstruction program in Afghanistan was already, in today’s dollars, larger than the Marshall Plan (which helped put all of devastated Western Europe back on its feet after World War II) and still the country was a shambles. In Iraq, a mere $60 billion was squandered on the failed rebuilding of the country. Keep in mind that none of this takes into account the staggering billions spent by the Pentagon in both countries to build strings of bases, ranging in size from American towns (with all the amenities of home) to tiny outposts. There would be 505 of them in Iraq and at least 550 in Afghanistan. Most were, in the end, abandoned, dismantled, or sometimes simply looted. And don’t forget the vast quantities of fuel imported into Afghanistan to run the U.S. military machine in those years, some of which was siphoned off by American soldiers, to the tune of at least $15 million, and sold to local Afghans on the sly.

In other words, in the post-9/11 years, “reconstruction” and “war” have really been euphemisms for what, in other countries, we would recognize as a massive system of corruption.

And let’s not forget another kind of “reconstruction” then underway. In both countries, the U.S. was creating enormous militaries and police forces essentially from scratch to the tune of at least $25 billion in Iraq and $65 billion in Afghanistan. What’s striking about both of these security forces, once constructed, is how similar they turned out to be to those police academies, the unfinished schools, and that natural gas station. It can’t be purely coincidental that both of the forces Americans proudly “stood up” have turned out to be the definition of corrupt: that is, they were filled not just with genuine recruits but with serried ranks of “ghost personnel.”

In June 2014, after whole divisions of the Iraqi army collapsed and fled before modest numbers of Islamic State militants, abandoning much of their weaponry and equipment, it became clear that they had been significantly smaller in reality than on paper. And no wonder, as that army had enlisted 50,000 “ghost soldiers” (who existed only on paper and whose salaries were lining the pockets of commanders and others). In Afghanistan, the U.S. is still evidently helping to pay for similarly stunning numbers of phantom personnel, though no specific figures are available. (In 2009, an estimated more than 25% of the police force consisted of such ghosts.) As John Sopko, the U.S. inspector general for Afghanistan,warned last June: “We are paying a lot of money for ghosts in Afghanistan… whether they are ghost teachers, ghost doctors or ghost policeman or ghost soldiers.”

And lest you imagine that the U.S. military has learned its lesson, rest assured that it’s still quite capable of producing nonexistent proxy forces. Take the Pentagon-CIA program to train thousands of carefully vetted “moderate” Syrian rebels, equip them, arm them, and put them in the field to fight the Islamic State. Congress ponied up $500 million for it, $384 million of which was spent before that project was shut down as an abject failure. By then, less than 200 American-backed rebels had been trained and even less put into the field in Syria — and they were almost instantly kidnapped or killed, or they simply handed over their equipment to the al-Qaeda-linked al-Nusra Front. At one point, according to the congressional testimony of the top American commander in the Middle East, only four or five American-produced rebels were left “in the field.” The cost-per-rebel sent into Syria, by the way, is now estimated at approximately $2 million.

A final footnote: the general who oversaw this program is, according to the New York Times, still a “rising star” in the Pentagon and in line for a promotion.

Profli-gate

You’ve just revisited the privatized, twenty-first-century version of the American way of war, which proved to be a smorgasbord of scandal, mismanagement, and corruption as far as the eye could see. In the tradition of Watergate, perhaps the whole system could be dubbed Profli-gate, since American war making across the Greater Middle East has represented perhaps the most profligate and least effective use of funds in the history of modern warfare. In fact, here’s a word not usually associated with the U.S. military: the war system of this era seems to function remarkably like a monumental scam, a swindle, a fraud.

The evidence is in: the U.S. military can win battles, but not a war, not even against minimally armed minority insurgencies; it can “stand up” foreign militaries, but only if they are filled with phantom feet and if the forces themselves are as hollow as tombs; it can pour funds into the reconstruction of countries, a process guaranteed to leave them more prostrate than before; it can bomb, missile, and drone-kill significant numbers of terrorists and other enemies, even as their terror outfits and insurgent movements continue to grow stronger under the shadow of American air power. Fourteen years and five failed states later in the Greater Middle East, all of that seems irrefutable.

And here’s something else irrefutable: amid the defeats, corruption, and disappointments, there lurks a kind of success. After all, every disaster in which the U.S. military takes part only brings more bounty to the Pentagon. Domestically, every failure results in calls for yet more military interventions around the world. As a result, the military is so much bigger and better funded than it was on September 10, 2001. The commanders who led our forces into such failures have repeatedly been rewarded and much of the top brass, civilian and military, though they should have retired in shame, have taken ever more golden parachutes into the lucrative worlds of defense contractors, lobbyists, and consultancies.

All of this couldn’t be more obvious, though it’s seldom said. In short, there turns out to be much good fortune in the disaster business, a fact which gives the whole process the look of a classic swindle in which the patsies lose their shirts but the scam artists make out like bandits.

Add in one more thing: these days, the only part of the state held in great esteem by conservatives and the present batch of Republican presidential candidates is the U.S. military. All of them, with the exception of Rand Paul, swear that on entering the Oval Office they will let that military loose, sending in more troops, or special ops forces, or air power, and funding the various services even more lavishly; all of this despite overwhelming evidence that the U.S. military is incapable of spending a dollar responsibly or effectively monitoring what it’s done with the taxpayer funds in its possession. (If you don’t believe me, forget everything in this piece and just check out the finances of the most expensive weapons system in history, the F-35 Lightning II, which should really be redubbed the F-35 Overrun for its madly spiraling costs.)

But no matter. If a system works (particularly for those in it), why change it? And by the way, in case you’re looking for a genuine steal, I have a fabulous gas station in Afghanistan to sell you…

Tom Engelhardt is a co-founder of the American Empire Project and the author of The United States of Fear as well as a history of the Cold War, The End of Victory Culture. He is a fellow of the Nation Institute and runs TomDispatch.com. His latest book is Shadow Government: Surveillance, Secret Wars, and a Global Security State in a Single-Superpower World.

The Deep State: The Unelected Shadow Government Is Here to Stay

Posted on December 24, 2015 by Reid Mukai

By John W. Whitehead

Source: The Rutherford Institute

“Behind the ostensible government sits enthroned an invisible government, owing no allegiance and acknowledging no responsibility to the people.” ― Theodore Roosevelt

America’s next president will inherit more than a bitterly divided nation teetering on the brink of financial catastrophe when he or she assumes office. He will also inherit a shadow government, one that is fully operational and staffed by unelected officials who are, in essence, running the country.

To be precise, however, the future president will actually inherit not one but two shadow governments.

The first shadow government, referred to as COG or continuity of government, is made up of unelected individuals who have been appointed to run the government in the event of a “catastrophe.”

The second shadow government, referred to as the Deep State, is comprised of unelected government bureaucrats, corporations, contractors, paper-pushers, and button-pushers who are actually calling the shots behind the scenes right now.

The first shadow government, COG, is a phantom menace waiting for the right circumstances—a terrorist attack, a natural disaster, an economic meltdown—to bring it out of the shadows, where it operates even now. When and if COG takes over, the police state will transition to martial law.

Yet as I point out in my book Battlefield America: The War on the American People, it is the second shadow government, the Deep State, which poses the greater threat to our freedoms. This permanent, corporatized, militarized, entrenched bureaucracy is unaffected by elections, unaltered by populist movements, and beyond the reach of the law.

This is the hidden face of the police state.

These two shadow governments, which make a mockery of representative government and the “reassurance ritual” of voting, have been a long time in the making. Yet they have been so shrouded in secrecy, well hidden from the eyes and ears of the American people, that they exist and function in contravention to the principles of democratic government.

As the following makes clear, these shadow governments, which operate beyond the reach of the Constitution and with no real accountability to the citizenry, are the reason why “we the people” have no control over our government.

The COG shadow government plan was devised during the Cold War as a means of ensuring that a nuclear strike didn’t paralyze the federal government.

COG initially called for three teams consisting of a cabinet member, an executive chief of staff and military and intelligence officials to practice evacuating and directing a counter nuclear strike against the Soviet Union from a variety of high-tech, mobile command vehicles. If the president and vice president were both killed, one of these teams would take control, with the ranking cabinet official serving as president.

This all changed after the attacks of September 11, 2001, when it became clear that there would be no warning against a terrorist attack. Instead of waiting until an attack occurred to mobilize part-time bureaucrats and activate evacuation schemes, George W. Bush opted to change COG and establish a full-time, permanent shadow government, stationed outside the capital, run by permanently appointed (not elected) executive officials.

COG has since taken on a power—and a budget—of its own.

Incredibly, under the Obama administration, the plans for the shadow government have expanded and grown far more elaborate and costly than many realize. It is what investigative journalist William M. Arkin refers to as “the latest manifestation of an obsession with government survival.”

In much the same way that the nation was taken hostage after 9/11 by color-coded terror alerts and “See Something, Say Something” campaigns that transformed us into a fearful, watchful nation of suspects, the government’s efforts to prepare us for a so-called national disaster have, in turn, left us a constant state of near-emergency and acclimated us to the sight of militarized police, military drills on American soil, privatized prisons, the specter of internment camps, and the erosion of constitutional rights, especially as they pertain to so-called “extremists,” domestic or otherwise.

Study the COG plans carefully, however, and you’ll find that the concern isn’t so much about protecting our government as it is about protecting the nation’s governmental elite.

As Arkin reports: “Countless billions have been spent on this endeavor over the years, a secret orgy of preparedness going on behind the scenes, one that ensures Washington can defend itself, take care of its own, and survive no matter what.”

To this end, the government has invested heavily in the “architecture of fear”: massive underground bunkers—the size of small cities—which are sprinkled throughout the country for the government elite to escape to “in case of an imminent nuclear strike so that they can set up a kind of Administration-in-exile, directing every order of business from retaliation to recovery.”

These bunkers, strategically located around the nation’s capital and in key states, represent a who’s who on the shadow government’s payroll, with every department and agency represented, from the Department of Education and the Trademark Office to the Small Business Administration and the National Archives.

No sector has been overlooked: military, surveillance, counterintelligence, scientific, political, judicial, corporate contractors, as well as computer programmers, engineers, fire fighters, craftsmen, security guards, branch chiefs, financial managers, supply officers, secretaries and stenographers, all of whom have been entrusted with special ID cards allowing them clearance into the doomsday survival sites. They’ve even included individuals tasked with patent and trademark processing. They even have contingency plans to save priceless works of art.

The Federal Relocation Arc near Washington DC will reportedly serve as the emergency bunker for “every Cabinet department (and every government organization deemed essential).” Site R, a 700,000-foot facility inside Raven Rock Mountain near Camp David, will serve as a backup Pentagon. Peters Mountain near Charlottesville, Va., is the likely site for the nation’s domestic spies to hide out. Congress will retire to a subterranean facility near the posh Greenbrier resortin West Virginia, which served as an internment facility for Japanese, Italian and German diplomats during World War II. And a 600,000-square-foot complex inside Virginia’s Mount Weather is expected to be the primary relocation site for the White House, the Supreme Court and much of the executive branch.

Built into the side of a mountain, Mount Weather, near Bluemont, Va., is staffed 24 hours a day, seven days a week. This self-contained facility contains, among other things, a hospital, crematorium, dining and recreation areas, sleeping quarters, reservoirs of drinking and cooling water, an emergency power plant, a radio/television studio and a full-time police and fire department.

There is also an Office of the Presidency at Mount Weather, which regularly receives top-secret national security information from all the federal departments and agencies. This facility was largely unknown to everyone, including Congress, until it came to light in the mid-1970s. Military personnel connected to the bunker have refused to reveal any information about it, even before congressional committees. In fact, Congress has no oversight, budgetary or otherwise, on Mount Weather, and the specifics of the facility remain top-secret.

These facilities reinforce a troubling government mindset that treats the American people as relatively insignificant and expendable. Because you know who’s not on the list of key-individuals-to-be-saved-in-the-eventuality-of-a-disaster? You and me and every other American citizen who is viewed as a mere economic unit to be tallied, bought and sold by those in power.

Not to worry, however. The government hasn’t completely forgotten about us.

In the event of a “national emergency”—loosely defined as “any incident, regardless of location, that results in extraordinary levels of mass casualties, damage, or disruption severely affecting the U.S. population, infrastructure, environment, economy, or government functions”—the executive branch and its unelected appointees will be given unchecked executive, legislative and judicial power.

In such an event, the Constitution will effectively be suspended, thereby ushering in martial law.

However, writing for Radar magazine, Christopher Ketcham suggests that the government won’t have completely forgotten about the rest of us. In fact, Ketcham believes that the government also has plans to imprison hundreds of thousands of “potentially suspect” Americans in detention camps.

Ketcham describes a program created by the Department of Homeland Security that relies on a database of Americans who might be considered potential threats in the event of a national emergency. Referred to by the code name Main Core, this database reportedly contains the names of millions of Americans who, “often for the slightest and most trivial reason, are considered unfriendly, and who, in a time of panic, might be incarcerated. The database can identify and locate perceived ‘enemies of the state’ almost instantaneously.”

Sounds unnervingly like the objectives of the government’s new Domestic Terrorism Czar and the Strong Cities network, which will be working to identify and target potential extremists, doesn’t it?

Under Ketcham’s scenario, if a terrorist attack occurs, the president will declare a national emergency, activating COG procedures and throwing the country into martial law with the shadow government at the helm. The administration will then round up the “dangerous” Americans listed in Main Core and place them in one of the many internment camps or private prisons built for just such an eventuality.

For all intents and purposes, the nation is one national “emergency” away from having a full-fledged, unelected, authoritarian state emerge from the shadows. All it will take is the right event—another terrorist attack, perhaps, or a natural disaster—for such a regime to emerge from the shadows.

As unnerving as that prospect may be, however, it is the second shadow government, what former congressional staffer Mike Lofgren refers to as “the Deep State, which operates according to its own compass heading regardless of who is formally in power,” that poses the greater threat right now.

Consider this: how is it that partisan gridlock has seemingly jammed up the gears (and funding sources) in Washington, yet the government has been unhindered in its ability to wage endless wars abroad, in the process turning America into a battlefield and its citizens into enemy combatants?

The credit for such relentless, entrenched, profit-driven governance, according to Lofgren, goes to “another government concealed behind the one that is visible at either end of Pennsylvania Avenue, a hybrid entity of public and private institutions ruling the country according to consistent patterns in season and out, connected to, but only intermittently controlled by, the visible state whose leaders we choose.”

This “state within a state” hides “mostly in plain sight, and its operators mainly act in the light of day,” says Lofgren, and yet the “Deep State does not consist of the entire government.”

Rather, Lofgren continues:

It is a hybrid of national security and law enforcement agencies: the Department of Defense, the Department of State, the Department of Homeland Security, the Central Intelligence Agency and the Justice Department. I also include the Department of the Treasury because of its jurisdiction over financial flows, its enforcement of international sanctions and its organic symbiosis with Wall Street.

All these agencies are coordinated by the Executive Office of the President via the National Security Council. Certain key areas of the judiciary belong to the Deep State, such as the Foreign Intelligence Surveillance Court, whose actions are mysterious even to most members of Congress. Also included are a handful of vital federal trial courts, such as the Eastern District of Virginia and the Southern District of Manhattan, where sensitive proceedings in national security cases are conducted.

The final government component (and possibly last in precedence among the formal branches of government established by the Constitution) is a kind of rump Congress consisting of the congressional leadership and some (but not all) of the members of the defense and intelligence committees. The rest of Congress, normally so fractious and partisan, is mostly only intermittently aware of the Deep State and when required usually submits to a few well-chosen words from the State’s emissaries.

In an expose titled “Top Secret America,” The Washington Post revealed the private side of this shadow government, made up of 854,000 contract personnel with top-secret clearances, “a number greater than that of top-secret-cleared civilian employees of the government.”

Reporting on the Post’s findings, Lofgren points out:

These contractors now set the political and social tone of Washington, just as they are increasingly setting the direction of the country, but they are doing it quietly, their doings unrecorded in the Congressional Record or the Federal Register, and are rarely subject to congressional hearings…

The Deep State not only holds the nation’s capital in thrall, but it also controls Wall Street (“which supplies the cash that keeps the political machine quiescent and operating as a diversionary marionette theater”) and Silicon Valley.

As Lofgren concludes:

[T]he Deep State is so heavily entrenched, so well protected by surveillance, firepower, money and its ability to co-opt resistance that it is almost impervious to change… If there is anything the Deep State requires it is silent, uninterrupted cash flow and the confidence that things will go on as they have in the past. It is even willing to tolerate a degree of gridlock: Partisan mud wrestling over cultural issues may be a useful distraction from its agenda.

Remember this the next time you find yourselves mesmerized by the antics of the 2016 presidential candidates or drawn into a politicized debate over the machinations of Congress, the president or the judiciary: it’s all intended to distract you from the fact that you have no authority and no rights in the face of the shadow governments.

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