US government to nationalize basic financial industry

You know things are getting bad with the economy when the capitalist US government starts to nationalize industries! But that’s what the Bush Team is going to be doing, alongside their usual supporting cast of Democratic Party politician hacks chipping in, too. See U.S. to take control of mortgage giants: reports

They called it ‘conservatorship’ to keep from using the word ‘nationalize’, but it is one and the same thing. And for sure, the one and same people who will be behind nationalizing the debt ridden Fannie Mae and Freddie Mac con artists will be bad mouthing Hugo Chavez when he nationalizes industries in Venezuela. There is one big difference between US and Venezuelan nationalizations though, and that is that the US government will be doing it to help the super rich, whereas Venezuela will be nationalizing industries to help out the poor working classes of that country.

MC FogHorn Leghorn and the F’N MA

Fat Fannie and Fudgebutt FredWith record high foreclosures due to predatory lenders and sham mortgages, who’s in favor of a taxpayer bailout to the Federal National Mortgage Assoc.?
Or how about public monies to save the Federal Home Loan Mortgage Corporation? No takers? The homeowners are still screwed, but the lenders need our help. They’re shareholder owned, government sanctioned monopolies, and they need 25 billion. No sympathetic alms? Good thing both the FNMA and the FHLMC, appointed themselves the intentionally endearing nicknames Fannie Mae and Freddie Mac to confuse our affections.

It reminds me of a classmate who reinvented himself on the first day of college. When professors asked our names or applicable nicknames, this skinny pocket-protector wearer told the class he went by “Bear.” And his unlikely reincarnation stuck. Thereafter “Bear” became that much less an engineering geek than his no more nerdier compatriots.

Fannie and Freddie may sound like personable natural derivatives of their acronyms, but the Appalachian appellations are official. When I was confronted about having apparently misspelled the cutesy MAE, being the purported colloquial surname of the usurious giant, I found there was indeed a formal spelling. Really? For a phonetic abbreviation? Couldn’t it just as easily be spelled with a Y? And why not Fanny with a Y, like Brice, Hackabout-Jones or the derriere? Too much impropriety for hillbillies?

Do the letters FN resolve to “Fanny” more than to the more modern and infinitely appropriate Fucking?

Where did MA become May? Why not Ma, like Ma Dalton?

And wherever do you get Freddie from FHL? I see Foghorn Leghorn for the first initials. Leaving MC for Mack as of The Knife.

The FNMA / FHLMC bonanza provides a textbook simple model of the capitalist stakeout of regulated/unregulated public finance: build a business, merge to create a monopoly, then loot funds to require a taxpayer bailout.

Global economic rapists are at it again

G8 protest
Why protest the G8 Summit July 7-9? Those hoodlums always look so determined. Here’s the rationale by the Emergency Exit Collective:

The 2008 G8 on Hokkaido, a Strategic Assessment
Emergency Exit Collective
Bristol, Mayday, 2008

The authors of this document are a collection of activists, scholars, and writers currently based in the United States and Western Europe who have gotten to know and work with each other in the movement against capitalist globalization. We’re writing this at the request of some members of No! G8 Action Japan, who asked us for a broad strategic analysis of the state of struggle as we see it, and particularly, of the role of the G8, what it represents, the dangers and opportunities that may lie hidden in the moment. It is in no sense programmatic. Mainly, it is an attempt to develop tools that we hope will be helpful for organizers, or for anyone engaged in the struggle against global capital.

I
It is our condition as human beings that we produce our lives in common.

II
Let us then try to see the world from the perspective of the planet’s commoners, taking the word in that sense: those whose most essential tradition is cooperation in the making and maintenance of human social life, yet who have had to do so under conditions of suffering and separation; deprived, ignored, devalued, divided into hierarchies, pitted against each other for our very physical survival. In one sense we are all commoners. But it’s equally true that just about everyone, at least in some ways, at some points, plays the role of the rulers—of those who expropriate, devalue and divide—or at the very least benefits from such divisions.

Obviously some do more than others. It is at the peak of this pyramid that we encounter groups like the G8.

III
The G8’s perspective is that of the aristocrats, the rulers: those who command and maintain that global machinery of violence that defends existing borders and lines of separation: whether national borders with their detention camps for migrants, or property regimes, with their prisons for the poor. They live by constantly claiming title to the products of others collective creativity and labour, and in thus doing they create the poor; they create scarcity in the midst of plenty, and divide us on a daily basis; they create financial districts that loot resources from across the world, and in thus doing they turn the spirit of human creativity into a spiritual desert; close or privatize parks, public water taps and libraries, hospitals, youth centers, universities, schools, public swimming pools, and instead endlessly build shopping malls that channels convivial life into a means of commodity circulation; work toward turning global ecological catastrophe into business opportunities.

These are the people who presume to speak in the name of the “international community” even as they hide in their gated communities or meet protected by phalanxes of riot cops. It is critical to bear in mind that the ultimate aim of their policies is never to create community but to introduce and maintain divisions that set common people at each other’s throats. The neoliberal project, which has been their main instrument for doing so for the last three decades, is premised on a constant effort either to uproot or destroy any communal or democratic system whereby ordinary people govern their own affairs or maintain common resources for the common good, or, to reorganize each tiny remaining commons as an isolated node in a market system in which livelihood is never guaranteed, where the gain of one community must necessarily be at the expense of others. Insofar as they are willing to appeal to high-minded principles of common humanity, and encourage global cooperation, only and exactly to the extent that is required to maintain this system of universal competition.

IV
At the present time, the G8—the annual summit of the leaders of “industrial democracies”—is the key coordinative institution charged with the task of maintaining this neoliberal project, or of reforming it, revising it, adapting it to the changing condition of planetary class relations. The role of the G8 has always been to define the broad strategic horizons through which the next wave of planetary capital accumulation can occur. This means that its main task is to answer the question of how 3?4 in the present conditions of multiple crises and struggles 3?4 to subordinate social relations among the producing commoners of the planet to capital’s supreme value: profit.

V
Originally founded as the G7 in 1975 as a means of coordinating financial strategies for dealing with the ‘70s energy crisis, then expanded after the end of the Cold War to include Russia, its currently face a moment of profound impasse in the governance of planetary class relations: the greatest since the ‘70s energy crisis itself.

VI
The ‘70s energy crisis represented the final death-pangs of what might be termed the Cold War settlement, shattered by a quarter century of popular struggle. It’s worth returning briefly to this history.

The geopolitical arrangements put in place after World War II were above all designed to forestall the threat of revolution. In the immediate wake of the war, not only did much of the world lie in ruins, most of world’s population had abandoned any assumption about the inevitability of existing social arrangements. The advent of the Cold War had the effect of boxing movements for social change into a bipolar straightjacket. On the one hand, the former Allied and Axis powers that were later to unite in the G7 (the US, Canada, UK, France, Italy, Germany, Japan)—the “industrialized democracies”, as they like to call themselves—engaged in a massive project of co-optation. Their governments continued the process, begun in the ‘30s, of taking over social welfare institutions that had originally been created by popular movements (from insurance schemes to public libraries), even to expand them, on condition that they now be managed by state-appointed bureaucracies rather than by those who used them, buying off unions and the working classes more generally with policies meant to guarantee high wages, job security and the promise of educational advance—all in exchange for political loyalty, productivity increases and wage divisions within national and planetary working class itself. The Sino-Soviet bloc—which effectively became a kind of junior partner within the overall power structure, and its allies remained to trap revolutionary energies into the task of reproducing similar bureaucracies elsewhere. Both the US and USSR secured their dominance after the war by refusing to demobilize, instead locking the planet in a permanent threat of nuclear annihilation, a terrible vision of absolute cosmic power.

VII
Almost immediately, though, this arrangement was challenged by a series of revolts from those whose work was required to maintain the system, but who were, effectively, left outside the deal: first, peasants and the urban poor in the colonies and former colonies of the Global South, next, disenfranchised minorities in the home countries (in the US, the Civil Rights movement, then Black Power), and finally and most significantly, by the explosion of the women’s movement of the late ‘60s and early ‘70s—the revolt of that majority of humanity whose largely unremunerated labor made the very existence “the economy” possible. This appears to have been the tipping point.

VIII
The problem was that the Cold War settlement was never meant to include everyone. It by definition couldn’t. Once matters reached tipping point, then, the rulers scotched the settlement. All deals were off. The oil shock was first edge of the counter-offensive, breaking the back of existing working class organizations, driving home the message that there was nothing guaranteed about prosperity. Under the aegis of the newly hatched G7, this counter-offensive involved a series of interwoven strategies that were later to give rise to what is known as neoliberalism.

IX
These strategies resulted in what came to be known as “Structural Adjustment” both in the North and in the South, accompanied by trade and financial liberalization. This, in turn, made possible crucial structural changes in our planetary production in common extending the role of the market to discipline our lives and divide us into more and more polarized wage hierarchy. This involved:

· In the immediate wake of ‘70s oil shock, petrodollars were recycled from OPEC into Northern banks that then lent them, at extortionate rates of interest, to developing countries of the Global South. This was the origin of the famous “Third World Debt Crisis.” The existence of this debt allowed institutions like the IMF to impose its monetarist orthodoxy on most of the planet for roughly twenty years, in the process, stripping away most of even those modest social protections that had been won by the world’s poor—large numbers of whom were plunged into a situation of absolute desperation.

· It also opened a period of new enclosures through the capitalist imposition of structural adjustment policies, manipulation of environmental and social catastrophes like war, or for that matter through the authoritarian dictates of “socialist” regimes. Through such means, large sections of the world’s population have over the past thirty years been dispossessed from resources previously held in common, either by dint of long traditions, or as the fruits of past struggles and past settlements.

· Through financial deregulation and trade liberalization, neoliberal capital, which emerged from the G7 strategies to deal with the 1970s crisis aimed thus at turning the “class war” in communities, factories, offices, streets and fields against the engine of competition, into a planetary “civil war”, pitting each community of commoners against every other community of commoners.

· Neoliberal capital has done this by imposing an ethos of “efficiency” and rhetoric of “lowering the costs of production” applied so broadly that mechanisms of competition have come to pervade every sphere of life. In fact these terms are euphemisms, for a more fundamental demand: that capital be exempt from taking any reduction in profit to finance the costs of reproduction of human bodies and their social and natural environments (which it does not count as costs) and which are, effectively, “exernalized” onto communities and nature.

· The enclosure of resources and entitlements won in previous generations of struggles both in the North and the South, in turn, created the conditions for increasing the wage hierarchies (both global and local), by which commoners work for capital—wage hierarchies reproduced economically through pervasive competition, but culturally, through male dominance, xenophobia and racism. These wage gaps, in turn, made it possible to reduce the value of Northern workers’ labour power, by introducing commodities that enter in their wage basket at a fraction of what their cost might otherwise have been. The planetary expansion of sweatshops means that American workers (for example) can buy cargo pants or lawn-mowers made in Cambodia at Walmart, or buy tomatoes grown by undocumented Mexican workers in California, or even, in many cases, hire Jamaican or Filipina nurses to take care of children and aged grandparents at such low prices, that their employers have been able to lower real wages without pushing most of them into penury. In the South, meanwhile, this situation has made it possible to discipline new masses of workers into factories and assembly lines, fields and offices, thus extending enormously capital’s reach in defining the terms—the what, the how, the how much—of social production.

· These different forms of enclosures, both North and South, mean that commoners have become increasingly dependent on the market to reproduce their livelihoods, with less power to resist the violence and arrogance of those whose priorities is only to seek profit, less power to set a limit to the market discipline running their lives, more prone to turn against one another in wars with other commoners who share the same pressures of having to run the same competitive race, but not the same rights and the same access to the wage. All this has meant a generalized state of precarity, where nothing can be taken for granted.

X
In turn, this manipulation of currency and commodity flows constituting neoliberal globalization became the basis for the creation of the planet’s first genuine global bureaucracy.

· This was multi-tiered, with finance capital at the peak, then the ever-expanding trade bureaucracies (IMF, WTO, EU, World Bank, etc), then transnational corporations, and finally, the endless varieties of NGOs that proliferated throughout the period—almost all of which shared the same neoliberal orthodoxy, even as they substituted themselves for social welfare functions once reserved for states.

· The existence of this overarching apparatus, in turn, allowed poorer countries previously under the control of authoritarian regimes beholden to one or another side in the Cold War to adopt “democratic” forms of government. This did allow a restoration of formal civil liberties, but very little that could really merit the name of democracy (the rule of the “demos”, i.e., of the commoners). They were in fact constitutional republics, and the overwhelming trend during the period was to strip legislatures, that branch of government most open to popular pressure, of most of their powers, which were increasingly shifted to the executive and judicial branches, even as these latter, in turn, largely ended up enacting policies developed overseas, by global bureaucrats.

· This entire bureaucratic arrangement was justified, paradoxically enough, by an ideology of extreme individualism. On the level of ideas, neoliberalism relied on a systematic cooptation of the themes of popular struggle of the ‘60s: autonomy, pleasure, personal liberation, the rejection of all forms of bureaucratic control and authority. All these were repackaged as the very essence of capitalism, and the market reframed as a revolutionary force of liberation.

· The entire arrangement, in turn, was made possible by a preemptive attitude towards popular struggle. The breaking of unions and retreat of mass social movements from the late ‘70s onwards was only made possible by a massive shift of state resources into the machinery of violence: armies, prisons and police (secret and otherwise) and an endless variety of private “security services”, all with their attendant propaganda machines, which tended to increase even as other forms of social spending were cut back, among other things absorbing increasing portions of the former proletariat, making the security apparatus an increasingly large proportion of total social spending. This approach has been very successful in holding back mass opposition to capital in much of the world (especially West Europe and North America), and above all, in making it possible to argue there are no viable alternatives. But in doing so, has created strains on the system so profound it threatens to undermine it entirely.

XI
The latter point deserves elaboration. The element of force is, on any number of levels, the weak point of the system. This is not only on the constitutional level, where the question of how to integrate the emerging global bureaucratic apparatus, and existing military arrangements, has never been resolved. It is above all an economic problem. It is quite clear that the maintenance of elaborate security machinery is an absolute imperative of neoliberalism. One need only observe what happened with the collapse of the Soviet bloc in Eastern Europe: where one might have expected the Cold War victors to demand the dismantling of the army, secret police and secret prisons, and to maintain and develop the existing industrial base, in fact, what they did was absolutely the opposite: in fact, the only part of the industrial base that has managed fully to maintain itself has been the parts required to maintained the security apparatus itself! Critical too is the element of preemption: the governing classes in North America, for example, are willing to go to almost unimaginable lengths to ensure social movements never feel they are accomplishing anything. The current Gulf War is an excellent example: US military operations appear to be organized first and foremost to be protest-proof, to ensure that what happened in Vietnam (mass mobilization at home, widespread revolt within the army overseas) could never be repeated. This means above all that US casualties must always be kept to a minimum. The result are rules of engagement, and practices like the use of air power within cities ostensibly already controlled by occupation forces, so obviously guaranteed to maximize the killing of innocents and galvanizing hatred against the occupiers that they ensure the war itself cannot be won. Yet this approach can be taken as the very paradigm for neoliberal security regimes. Consider security arrangements around trade summits, where police are so determined prevent protestors from achieving tactical victories that they are often willing to effectively shut down the summits themselves. So too in overall strategy. In North America, such enormous resources are poured into the apparatus of repression, militarization, and propaganda that class struggle, labor action, mass movements seem to disappear entirely. It is thus possible to claim we have entered a new age where old conflicts are irrelevant. This is tremendously demoralizing of course for opponents of the system; but those running the system seem to find that demoralization so essential they don’t seem to care that the resultant apparatus (police, prisons, military, etc) is, effectively, sinking the entire US economy under its dead weight.

XII
The current crisis is not primarily geopolitical in nature. It is a crisis of neoliberalism itself. But it takes place against the backdrop of profound geopolitical realignments. The decline of North American power, both economic and geopolitical has been accompanied by the rise of Northeast Asia (and to a increasing extent, South Asia as well). While the Northeast Asian region is still divided by painful Cold War cleavages—the fortified lines across the Taiwan straits and at the 38th parallel in Korea…—the sheer realities of economic entanglement can be expected to lead to a gradual easing of tensions and a rise to global hegemony, as the region becomes the new center of gravity of the global economy, of the creation of new science and technology, ultimately, of political and military power. This may, quite likely, be a gradual and lengthy process. But in the meantime, very old patterns are rapidly reemerging: China reestablishing relations with ancient tributary states from Korea to Vietnam, radical Islamists attempting to reestablish their ancient role as the guardians of finance and piety at the in the Central Asian caravan routes and across Indian Ocean, every sort of Medieval trade diaspora reemerging… In the process, old political models remerge as well: the Chinese principle of the state transcending law, the Islamic principle of a legal order transcending any state. Everywhere, we see the revival too of ancient forms of exploitation—feudalism, slavery, debt peonage—often entangled in the newest forms of technology, but still echoing all the worst abuses of the Middle Ages. A scramble for resources has begun, with US occupation of Iraq and saber-rattling throughout the surrounding region clearly meant (at least in part) to place a potential stranglehold the energy supply of China; Chinese attempts to outflank with its own scramble for Africa, with increasing forays into South America and even Eastern Europe. The Chinese invasion into Africa (not as of yet at least a military invasion, but already involving the movement of hundreds of thousands of people), is changing the world in ways that will probably be felt for centuries. Meanwhile, the nations of South America, the first victims of the “Washington consensus” have managed to largely wriggle free from the US colonial orbit, while the US, its forces tied down in the Middle East, has for the moment at least abandoned it, is desperately struggling to keep its grip Mexico, Central America and the Caribbean—its own “near abroad”.

XIII
In another age all this might have led to war—that is, not just colonial occupations, police actions, or proxy wars (which are obviously already taking place), but direct military confrontations between the armies of major powers. It still could; accidents happen; but there is reason to believe that, when it comes to moments of critical decision, the loyalties of the global elites are increasingly to each other, and not to the national entities for whom they claim to speak. There is some compelling evidence for this.

Take for example when the US elites panicked at the prospect of the massive budget surpluses of the late 1990s. As Alan Greenspan, head of the Federal Reserve at the time warned, if these were allowed to stand they would have flooded government coffers with so many trillions of dollars that it could only have lead to some form of creeping socialism, even, he predicted, to the government acquiring “equity stakes” in key US corporations. The more excitable of capitalism’s managers actually began contemplating scenarios where the capitalist system itself would be imperiled. The only possible solution was massive tax cuts; these were duly enacted, and did indeed manage to turn surpluses into enormous deficits, financed by the sale of treasury bonds to Japan and China. Conditions have thus now reached a point where it is beginning to look as if the most likely long term outcome for the US (its technological and industrial base decaying, sinking under the burden of its enormous security spending) will be to end up serve as junior partner and military enforcer for East Asia capital. Its rulers, or at least a significant proportion of them, would prefer to hand global hegemony to the rulers of China (provided the latter abandon Communism) than to return to any sort of New Deal compromise with their “own” working classes.

A second example lies in the origins of what has been called the current “Bretton Woods II” system of currency arrangements, which underline a close working together of some “surplus” and “deficit” countries within global circuits. The macroeconomic manifestation of the planetary restructuring outlined in XIX underlines both the huge US trade deficit that so much seem to worry many commentators, and the possibility to continually generate new debt instruments like the one that has recently resulted in the sub-prime crisis. The ongoing recycling of accumulated surplus of countries exporting to the USA such as China and oil producing countries is what has allowed financiers to create new credit instruments in the USA. Hence, the “deal” offered by the masters in the United States to its commoners has been this: ‘you, give us a relative social peace and accept capitalist markets as the main means through which you reproduce your own livelihoods, and we will give you access to cheaper consumption goods, access to credit for buying cars and homes, and access to education, health, pensions and social security through the speculative means of stock markets and housing prices.’ Similar compromises were reached in all the G8 countries.

Meanwhile, there is the problem of maintaining any sort of social peace with the hundreds of millions of unemployed, underemployed, dispossessed commoners currently swelling the shanty-towns of Asia, Africa, and Latin America as a result of ongoing enclosures (which have speeded up within China and India in particular, even as “structural adjustment policies” in Africa and Latin America have been derailed). Any prospect of maintaining peace in these circumstances would ordinarily require either extremely high rates of economic growth—which globally have not been forthcoming, since outside of China, growth rates in the developing world have been much lower than they were in the ‘50s, ‘60s, or even ‘70s—or extremely high levels of repression, lest matters descend into rebellion or generalized civil war. The latter has of course occurred in many parts of the world currently neglected by capital, but in favored regions, such as the coastal provinces of China, or “free trade” zones of India, Egypt, or Mexico, commoners are being offered a different sort of deal: industrial employment at wages that, while very low by international standards, are still substantially higher than anything currently obtainable in the impoverished countryside; and above all the promise, through the intervention of Western markets and (privatized) knowledge, of gradually improving conditions of living. While over the least few years wages in many such areas seem to be growing, thanks to the intensification of popular struggles, such gains are inherently vulnerable: the effect of recent food inflation has been to cut real wages back dramatically—and threaten millions with starvation.

What we really want to stress here, though, is that the long-term promise being offered to the South is just as untenable as the idea that US or European consumers can indefinitely expand their conditions of life through the use of mortgages and credit cards.

What’s being offered the new dispossessed is a transposition of the American dream. The idea is that the lifestyle and consumption patterns of existing Chinese, Indian, or Brazilian or Zambian urban middle classes (already modeled on Northern ones) will eventually become available to the children of today’s miners, maquila or plantation laborers, until, ultimately, everyone on earth is brought up to roughly the same level of consumption. Put in these terms, the argument is absurd. The idea that all six billion of us can become “middle class” is obviously impossible. First of all there is a simple problem of resources. It doesn’t matter how many bottles we recycle or how energy efficient are the light bulbs we use, there’s just no way the earth’s ecosystem can accommodate six billion people driving in private cars to work in air-conditioned cubicles before periodically flying off to vacation in Acapulco or Tahiti. To maintain the style of living and producing in common we now identify with “middle classness” on a planetary scale would require several additional planets.

This much has been pointed out repeatedly. But the second point is no less important. What this vision of betterment ultimately proposes is that it would be possible to build universal prosperity and human dignity on a system of wage labor. This is fantasy. Historically, wages are always the contractual face for system of command and degradation, and a means of disguising exploitation: expressing value for work only on condition of stealing value without work— and there is no reason to believe they could ever be anything else. This is why, as history has also shown, human beings will always avoid working for wages if they have any other viable option. For a system based on wage labor to come into being, such options must therefore be made unavailable. This in turn means that such systems are always premised on structures of exclusion: on the prior existence of borders and property regimes maintained by violence. Finally, historically, it has always proved impossible to maintain any sizeable class of wage-earners in relative prosperity without basing that prosperity, directly or indirectly, on the unwaged labor of others—on slave-labor, women’s domestic labor, the forced labor of colonial subjects, the work of women and men in peasant communities halfway around the world—by people who are even more systematically exploited, degraded, and immiserated. For that reason, such systems have always depended not only on setting wage-earners against each other by inciting bigotry, prejudice, hostility, resentment, violence, but also by inciting the same between men and women, between the people of different continents (“race”), between the generations.

From the perspective of the whole, then, the dream of universal middle class “betterment” must necessarily be an illusion constructed in between the Scylla of ecological disaster, and the Charybdis of poverty, detritus, and hatred: precisely, the two pillars of today’s strategic impasse faced by the G8.

XIV
How then do we describe the current impasse of capitalist governance?

To a large degree, it is the effect of a sudden and extremely effective upswing of popular resistance—one all the more extraordinary considering the huge resources that had been invested in preventing such movements from breaking out.

On the one hand, the turn of the millennium saw a vast and sudden flowering of new anti-capitalist movements, a veritable planetary uprising against neoliberalism by commoners in Latin America, India, Africa, Asia, across the North Atlantic world’s former colonies and ultimately, within the cities of the former colonial powers themselves. As a result, the neoliberal project lies shattered. What came to be called the “anti-globalization” movement took aim at the trade bureaucracies—the obvious weak link in the emerging institutions of global administration—but it was merely the most visible aspect of this uprising. It was however an extraordinarily successful one. Not only was the WTO halted in its tracks, but all major trade initiatives (MAI, FTAA…) scuttled. The World Bank was hobbled and the power of the IMF over most of the world’s population, effectively, destroyed. The latter, once the terror of the Global South, is now a shattered remnant of its former self, reduced to selling off its gold reserves and desperately searching for a new global mission.

In many ways though spectacular street actions were merely the most visible aspects of much broader changes: the resurgence of labor unions, in certain parts of the world, the flowering of economic and social alternatives on the grassroots levels in every part of the world, from new forms of direct democracy of indigenous communities like El Alto in Bolivia or self-managed factories in Paraguay, to township movements in South Africa, farming cooperatives in India, squatters’ movements in Korea, experiments in permaculture in Europe or “Islamic economics” among the urban poor in the Middle East. We have seen the development of thousands of forms of mutual aid association, most of which have not even made it onto the radar of the global media, often have almost no ideological unity and which may not even be aware of each other’s existence, but nonetheless share a common desire to mark a practical break with capitalism, and which, most importantly, hold out the prospect of creating new forms of planetary commons that can—and in some cases are—beginning to knit together to provide the outlines of genuine alternative vision of what a non-capitalist future might look like.

The reaction of the world’s rulers was predictable. The planetary uprising had occurred during a time when the global security apparatus was beginning to look like it lacked a purpose, when the world threatened to return to a state of peace. The response—aided of course, by the intervention of some of the US’ former Cold War allies, reorganized now under the name of Al Qaeda—was a return to global warfare. But this too failed. The “war on terror”—as an attempt to impose US military power as the ultimate enforcer of the neoliberal model—has collapsed as well in the face of almost universal popular resistance. This is the nature of their “impasse”.

At the same time, the top-heavy, inefficient US model of military capitalism—a model created in large part to prevent the dangers of social movements, but which the US has also sought to export to some degree simply because of its profligacy and inefficiency, to prevent the rest of the world from too rapidly overtaking them—has proved so wasteful of resources that it threatens to plunge the entire planet into ecological and social crisis. Drought, disaster, famines, combine with endless campaigns of enclosure, foreclosure, to cast the very means of survival—food, water, shelter—into question for the bulk of the world’s population.

XV
In the rulers’ language the crisis understood, first and foremost, as a problem of regulating cash flows, of reestablishing, as they like to put it, a new “financial architecture”. Obviously they are aware of the broader problems. Their promotional literature has always been full of it. From the earliest days of the G7, through to the days after the Cold War, when Russia was added as a reward for embracing capitalism, they have always claimed that their chief concerns include

· the reduction of global poverty

· sustainable environmental policies

· sustainable global energy policies

· stable financial institutions governing global trade and currency transactions

If one were to take such claims seriously, it’s hard to see their overall performance as anything but a catastrophic failure. At the present moment, all of these are in crisis mode: there are food riots, global warming, peak oil, and the threat of financial meltdown, bursting of credit bubbles, currency crises, a global credit crunch. [**Failure on this scale however, opens opportunities for the G8 themselves, as summit of the global bureaucracy, to reconfigure the strategic horizon. Therefore, it’s always with the last of these that they are especially concerned. ]The real problem, from the perspective of the G8, is one of reinvestment: particularly, of the profits of the energy sector, but also, now, of emerging industrial powers outside the circle of the G8 itself. The neoliberal solution in the ‘70s had been to recycle OPEC’s petrodollars into banks that would use it much of the world into debt bondage, imposing regimes of fiscal austerity that, for the most part, stopped development (and hence, the emergence potential rivals) in its tracks. By the ‘90s, however, much East Asia in particular had broken free of this regime. Attempts to reimpose IMF-style discipline during the Asian financial crisis of 1997 largely backfired. So a new compromise was found, the so-called Bretton Woods II: to recycle the profits from the rapidly expanding industrial economies of East Asia into US treasury debt, artificially supporting the value of the dollar and allowing a continual stream of cheap exports that, aided by the US housing bubble, kept North Atlantic economies afloat and buy off workers there with cheap oil and even cheaper consumer goods even as real wages shrank. This solution however soon proved a temporary expedient. Bush regime’s attempt to lock it in by the invasion of Iraq, which was meant to lead to the forced privatization of Iraqi oil fields, and, ultimately, of the global oil industry as a whole, collapsed in the face of massive popular resistance (just as Saddam Hussein’s attempt to introduce neoliberal reforms in Iraq had failed when he was still acting as American deputy in the ‘90s). Instead, the simultaneous demand for petroleum for both Chinese manufacturers and American consumers caused a dramatic spike in the price of oil. What’s more, rents from oil and gas production are now being used to pay off the old debts from the ‘80s (especially in Asia and Latin America, which have by now paid back their IMF debts entirely), and—increasingly—to create state-managed Sovereign Wealth Funds that have largely replaced institutions like the IMF as the institutions capable of making long-term strategic investments. The IMF, purposeless, tottering on the brink of insolvency, has been reduced to trying to come up with “best practices” guidelines for fund managers working for governments in Singapore, Seoul, and Abu Dhabi.

There can be no question this time around of freezing out countries like China, India, or even Brazil. The question for capital’s planners, rather, is how to channel these new concentrations of capital in such a way that they reinforce the logic of the system instead of undermining it.

XVI
How can this be done? This is where appeals to universal human values, to common membership in an “international community” come in to play. “We all must pull together for the good of the planet,” we will be told. The money must be reinvested “to save the earth.”

To some degree this was always the G8 line: this is a group has been making an issue of climate change since 1983. Doing so was in one sense a response to the environmental movements of the ‘70s and ‘80s. The resultant emphasis on biofuels and “green energy” was from their point of view, the perfect strategy, seizing on an issue that seemed to transcend class, appropriating ideas and issues that emerged from social movements (and hence coopting and undermining especially their radical wings), and finally, ensuring such initiatives are pursued not through any form of democratic self-organization but “market mechanisms”—to effective make the sense of public interest productive for capitalism.

What we can expect now is a two-pronged attack. On the one hand, they will use the crisis to attempt to reverse the gains of past social movements: to put nuclear energy back on the table to deal with the energy crisis and global warming, or genetically modified foods to deal with the food crisis. Prime Minister Fukuda, the host of the current summit, for example, is already proposing the nuclear power is the “solution” to the global warming crisis, even as the German delegation resists. On the other, and even more insidiously, they will try once again to co-opt the ideas and solutions that have emerged from our struggles as a way of ultimately undermining them. Appropriating such ideas is simply what rulers do: the bosses brain is always under the workers’ hat. But the ultimate aim is to answer the intensification of class struggle, of the danger of new forms of democracy, with another wave of enclosures, to restore a situation where commoners’ attempts to create broader regimes of cooperation are stymied, and people are plunged back into mutual competition.

We can already see the outlines of how this might be done. There are already suggestions that Sovereign Wealth Funds put aside a certain (miniscule) proportion of their money for food aid, but only as tied to a larger project of global financial restructuring. The World Bank, largely bereft of its earlier role organizing dams and pipe-lines across the world, has been funding development in China’s poorer provinces, freeing the Chinese government to carry out similar projects in Southeast Asia, Africa, and even Latin America (where, of course, they cannot effectively be held to any sort of labor or environmental standards). There is the possibility of a new class deal in China itself, whose workers can be allowed higher standards of living if new low wage zones are created elsewhere—for instance, Africa (the continent where struggles over maintaining the commons have been most intense in current decades)—with the help of Chinese infrastructural projects. Above of all, money will be channeled into addressing climate change, into the development of alternative energy, which will require enormous investments, in such a way as to ensure that whatever energy resources do become important in this millennium, they can never be democratized—that the emerging notion of a petroleum commons, that energy resources are to some degree a common patrimony meant primarily to serve the community as a whole, that is beginning to develop in parts of the Middle East and South America—not be reproduced in whatever comes next.

Since this will ultimately have to be backed up by the threat of violence, the G8 will inevitably have to struggle with how to (yet again) rethink enforcement mechanisms. The latest move , now that the US “war on terror” paradigm has obviously failed, would appear to be a return to NATO, part of a reinvention of the “European security architecture” being proposed at the upcoming G8 meetings in Italy in 2009 on the 60th anniversary of NATO’s foundation—but part of a much broader movement of the militarization of social conflict, projecting potential resource wars, demographic upheavals resulting from climate change, and radical social movements as potential military problems to be resolved by military means. Opposition to this new project is already shaping up as the major new European mobilization for the year following the current G-8.

XVII
While the G-8 sit at the pinnacle of a system of violence, their preferred idiom is monetary. Their impulse whenever possible is to translate all problems into money, financial structures, currency flows—a substance whose movements they carefully monitor and control.

Money, on might say, is their poetry—a poetry whose letters are written in our blood. It is their highest and most abstract form of expression, their way of making statements about the ultimate truth of the world, even if it operates in large part by making things disappear. How else could it be possible to argue—no, to assume as a matter of common sense—that the love, care, and concern of a person who tends to the needs of children, teaching, minding, helping them to become decent , thoughtful, human beings, or who grows and prepares food, is worth ten thousand times less than someone who spends the same time designing a brand logo, moving abstract blips across a globe, or denying others health care.

The role of money however has changed profoundly since 1971 when the dollar was delinked from gold. This has created a profound realignment of temporal horizons. Once money could be said to be primarily congealed results of past profit and exploitation. As capital, it was dead labor. Millions of indigenous Americans and Africans had their lives pillaged and destroyed in the gold mines in order to be rendered into value. The logic of finance capital, of credit structures, certainly always existed as well (it is at least as old as industrial capital; possibly older), but in recent decades these logic of financial capital has come to echo and re-echo on every level of our lives. In the UK 97% of money in circulation is debt, in the US, 98%. Governments run on deficit financing, wealthy economies on consumer debt, the poor are enticed with microcredit schemes, debts are packaged and repackaged in complex financial derivatives and traded back and forth. Debt however is simply a promise, the expectation of future profit; capital thus increasingly brings the future into the present—a future that, it insists, must always be the same in nature, even if must also be greater in magnitude, since of course the entire system is premised on continual growth. Where once financiers calculated and traded in the precise measure of our degradation, having taken everything from us and turned it into money, now money has flipped, to become the measure of our future degradation—at the same time as it binds us to endlessly working in the present.

The result is a strange moral paradox. Love, loyalty, honor, commitment—to our families, for example, which means to our shared homes, which means to the payment of monthly mortgage debts—becomes a matter of maintaining loyalty to a system which ultimately tells us that such commitments are not a value in themselves. This organization of imaginative horizons, which ultimately come down to a colonization of the very principle of hope, has come to supplement the traditional evocation of fear (of penury, homelessness, joblessness, disease and death). This colonization paralyzes any thought of opposition to a system that almost everyone ultimately knows is not only an insult to everything they really cherish, but a travesty of genuine hope, since, because no system can really expand forever on a finite planet, everyone is aware on some level that in the final analysis they are dealing with a kind of global pyramid scheme, what we are ultimately buying and selling is the real promise of global social and environmental apocalypse.

XVIII
Finally then we come to the really difficult, strategic questions. Where are the vulnerabilities? Where is hope? Obviously we have no certain answers here. No one could. But perhaps the proceeding analysis opens up some possibilities that anti-capitalist organizers might find useful to explore.

One thing that might be helpful is to rethink our initial terms. Consider communism. We are used to thinking of it as a total system that perhaps existed long ago, and to the desire to bring about an analogous system at some point in the future—usually, at whatever cost. It seems to us that dreams of communist futures were never purely fantasies; they were simply projections of existing forms of cooperation, of commoning, by which we already make the world in the present. Communism in this sense is already the basis of almost everything, what brings people and societies into being, what maintains them, the elemental ground of all human thought and action. There is absolutely nothing utopian here. What is utopian, really, is the notion that any form of social organization, especially capitalism, could ever exist that was not entirely premised on the prior existence of communism. If this is true, the most pressing question is simply how to make that power visible, to burst forth, to become the basis for strategic visions, in the face of a tremendous and antagonistic power committed to destroying it—but at the same time, ensuring that despite the challenge they face, they never again become entangled with forms of violence of their own that make them the basis for yet another tawdry elite. After all, the solidarity we extend to one another, is it not itself a form of communism? And is it not so above because it is not coerced?

Another thing that might be helpful is to rethink our notion of crisis. There was a time when simply describing the fact that capitalism was in a state of crisis, driven by irreconcilable contradictions, was taken to suggest that it was heading for a cliff. By now, it seems abundantly clear that this is not the case. Capitalism is always in a crisis. The crisis never goes away. Financial markets are always producing bubbles of one sort or another; those bubbles always burst, sometimes catastrophically; often entire national economies collapse, sometimes the global markets system itself begins to come apart. But every time the structure is reassembled. Slowly, painfully, dutifully, the pieces always end up being put back together once again.

Perhaps we should be asking: why?

In searching for an answer, it seems to us, we might also do well to put aside another familiar habit of radical thought: the tendency to sort the world into separate levels—material realities, the domain of ideas or “consciousness”, the level of technologies and organizations of violence—treating these as if these were separate domains that each work according to separate logics, and then arguing which “determines” which. In fact they cannot be disentangled. A factory may be a physical thing, but the ownership of a factory is a social relation, a legal fantasy that is based partly on the belief that law exists, and partly on the existence of armies and police. Armies and police on the other hand exist partly because of factories providing them with guns, vehicles, and equipment, but also, because those carrying the guns and riding in the vehicles believe they are working for an abstract entity they call “the government”, which they love, fear, and ultimately, whose existence they take for granted by a kind of faith, since historically, those armed organizations tend to melt away immediately the moment they lose faith that the government actually exists. Obviously exactly the same can be said of money. It’s value is constantly being produced by eminently material practices involving time clocks, bank machines, mints, and transatlantic computer cables, not to mention love, greed, and fear, but at the same time, all this too rests on a kind of faith that all these things will continue to interact in more or less the same way. It is all very material, but it also reflects a certain assumption of eternity: the reason that the machine can always be placed back together is, simply, because everyone assumes it must. This is because they cannot realistically imagine plausible alternatives; they cannot imagine plausible alternatives because of the extraordinarily sophisticated machinery of preemptive violence that ensure any such alternatives are uprooted or contained (even if that violence is itself organized around a fear that itself rests on a similar form of faith.) One cannot even say it’s circular. It’s more a kind of endless, unstable spiral. To subvert the system is then, to intervene in such a way that the whole apparatus begins to spin apart.

XIX
It appears to us that one key element here—one often neglected in revolutionary strategy—is the role of the global middle classes. This is a class that, much though it varies from country (in places like the US and Japan, overwhelming majorities consider themselves middle class; in, say, Cambodia or Zambia, only very small percentages), almost everywhere provides the key constituency of the G8 outside of the ruling elite themselves. It has become a truism, an article of faith in itself in global policy circles, that national middle class is everywhere the necessary basis for democracy. In fact, middle classes are rarely much interested in democracy in any meaningful sense of that word (that is, of the self-organization or self-governance of communities). They tend to be quite suspicious of it. Historically, middle classes have tended to encourage the establishment of constitutional republics with only limited democratic elements (sometimes, none at all). This is because their real passion is for a “betterment”, for the prosperity and advance of conditions of life for their children—and this betterment, since it is as noted above entirely premised on structures of exclusion, requires “security”. Actually the middle classes depend on security on every level: personal security, social security (various forms of government support, which even when it is withdrawn from the poor tends to be maintained for the middle classes), security against any sudden or dramatic changes in the nature of existing institutions. Thus, politically, the middle classes are attached not to democracy (which, especially in its radical forms, might disrupt all this), but to the rule of law. In the political sense, then, being “middle class” means existing outside the notorious “state of exception” to which the majority of the world’s people are relegated. It means being able to see a policeman and feel safer, not even more insecure. This would help explain why within the richest countries, the overwhelming majority of the population will claim to be “middle class” when speaking in the abstract, even if most will also instantly switch back to calling themselves “working class” when talking about their relation to their boss.

That rule of law, in turn, allows them to live in that temporal horizon where the market and other existing institutions (schools, governments, law firms, real estate brokerages…) can be imagined as lasting forever in more or less the same form. The middle classes can thus be defined as those who live in the eternity of capitalism. (The elites don’t; they live in history, they don’t assume things will always be the same. The disenfranchized don’t; they don’t have the luxury; they live in a state of precarity where little or nothing can safely be assumed.) Their entire lives are based on assuming that the institutional forms they are accustomed to will always be the same, for themselves and their grandchildren, and their “betterment” will be proportional to the increase in the level of monetary wealth and consumption. This is why every time global capital enters one of its periodic crises, every time banks collapse, factories close, and markets prove unworkable, or even, when the world collapses in war, the managers and dentists will tend to support any program that guarantees the fragments will be dutifully pieced back together in roughly the same form—even if all are, at the same time, burdened by at least a vague sense that the whole system is unfair and probably heading for catastrophe.

XIX
The strategic question then is, how to shatter this sense of inevitability? History provides one obvious suggestion. The last time the system really neared self-destruction was in the 1930s, when what might have otherwise been an ordinary turn of the boom-bust cycle turned into a depression so profound that it took a world war to pull out of it. What was different? The existence of an alternative: a Soviet economy that, whatever its obvious brutalities, was expanding at breakneck pace at the very moment market systems were undergoing collapse. Alternatives shatter the sense of inevitability, that the system must, necessarily, be patched together in the same form; this is why it becomes an absolute imperative of global governance that even small viable experiments in other ways of organizing communities be wiped out, or, if that is not possible, that no one knows about them.

If nothing else, this explains the extraordinary importance attached to the security services and preemption of popular struggle. Commoning, where it already exists, must be made invisible. Alternatives— Zapatistas in Chiapas, APPO in Oaxaca, worker-managed factories in Argentina or Paraguay, community-run water systems in South Africa or Bolivia, living alternatives of farming or fishing communities in India or Indonesia, or a thousand other examples—must be made to disappear, if not squelched or destroyed, then marginalized to the point they seem irrelevant, ridiculous. If the managers of the global system are so determined to do this they are willing to invest such enormous resources into security apparatus that it threatens to sink the system entirely, it is because they are aware that they are working with a house of cards. That the principle of hope and expectation on which capitalism rests would evaporate instantly if almost any other principle of hope or expectation seemed viable.

The knowledge of alternatives, then, is itself a material force.

Without them, of course, the shattering of any sense of certainty has exactly the opposite effect. It becomes pure precarity, an insecurity so profound that it becomes impossible to project oneself in history in any form, so that the one-time certainties of middle class life itself becomes a kind of utopian horizon, a desperate dream, the only possible principle of hope beyond which one cannot really imagine anything. At the moment, this seems the favorite weapon of neoliberalism: whether promulgated through economic violence, or the more direct, traditional kind.

One form of resistance that might prove quite useful here – and is already being discussed in some quarters – are campaigns against debt itself. Not demands for debt forgiveness, but campaigns of debt resistance.

XX
In this sense the great slogan of the global justice movement, “another world is possible”, represents the ultimate threat to existing power structures. But in another sense we can even say we have already begun to move beyond that. Another world is not merely possible. It is inevitable. On the one hand, as we have pointed out, such a world is already in existence in the innumerable circuits of social cooperation and production in common based on different values than those of profit and accumulation through which we already create our lives, and without which capitalism itself would be impossible. On the other, a different world is inevitable because capitalism—a system based on infinite material expansion—simply cannot continue forever on a finite world. At some point, if humanity is to survive at all, we will be living in a system that is not based on infinite material expansion. That is, something other than capitalism.

The problem is there is no absolute guarantee that ‘something’ will be any better. It’s pretty easy to imagine “other worlds” that would be even worse. We really don’t have any idea what might happen. To what extent will the new world still organized around commoditization of life, profit, and pervasive competition? Or a reemergence of even older forms of hierarchy and degradation? How, if we do overcome capitalism directly, by the building and interweaving of new forms of global commons, do we protect ourselves against the reemergence of new forms of hierarchy and division that we might not now even be able to imagine?

It seems to us that the decisive battles that will decide the contours of this new world will necessarily be battles around values. First and foremost are values of solidarity among commoners. Since after all, every rape of a woman by a man or the racist murder of an African immigrant by a European worker is worth a division in capital’s army.

Similarly, imagining our struggles as value struggles might allow us to see current struggles over global energy policies and over the role of money and finance today as just an opening salvo of an even larger social conflict to come. For instance, there’s no need to demonize petroleum, for example, as a thing in itself. Energy products have always tended to play the role of a “basic good”, in the sense that their production and distribution becomes the physical basis for all other forms of human cooperation, at the same time as its control tends to organize social and even international relations. Forests and wood played such a role from the time of the Magna Carta to the American Revolution, sugar did so during the rise of European colonial empires in the 17th and 18th centuries, fossil fuels do so today. There is nothing intrinsically good or bad about fossil fuel. Oil is simply solar radiation, once processed by living beings, now stored in fossil form. The question is of control and distribution. This is the real flaw in the rhetoric over “peak oil”: the entire argument is premised on the assumption that, for the next century at least, global markets will be the only means of distribution. Otherwise the use of oil would depend on needs, which would be impossible to predict precisely because they depend on the form of production in common we adopt. The question thus should be: how does the anti-capitalist movement peak the oil? How does it become the crisis for a system of unlimited expansion?

It is the view of the authors of this text that the most radical planetary movements that have emerged to challenge the G8 are those that direct us towards exactly these kind of questions. Those which go beyond merely asking how to explode the role money plays in framing our horizons, or even challenging the assumption of the endless expansion of “the economy”, to ask why we assume something called “the economy” even exists, and what other ways we can begin imagining our material relations with one another. The planetary women’s movement, in its many manifestations, has and continues to play perhaps the most important role of all here, in calling for us to reimagine our most basic assumptions about work, to remember that the basic business of human life is not actually the production of communities but the production, the mutual shaping of human beings. The most inspiring of these movements are those that call for us to move beyond a mere challenge to the role of money to reimagine value: to ask ourselves how can we best create a situation where everyone is secure enough in their basic needs to be able to pursue those forms of value they decide are ultimately important to them. To move beyond a mere challenge to the tyranny of debt to ask ourselves what we ultimately owe to one another and to our environment. That recognize that none this needs to invented from whole cloth. It’s all already there, immanent in the way everyone, as commoners, create the world together on a daily basis. And that asking these questions is never, and can never be, an abstract exercise, but is necessarily part of a process by which we are already beginning to knit these forms of commons together into new forms of global commons that will allow entirely new conceptions of our place in history.

It is to those already engaged in such a project that we offer these initial thoughts on our current strategic situation.

List of top privately held US companies

The shift of businesses into private ownership represents the eroding stake which common Americans have in the Capitalist system. Stock holdings in most public corporations are predominantly in wealthy hands, but private corporations drop even the pretense of serving the middle class economy. Biggest ($90B) is Koch Industries which provides “beef, fuels, fertilizer and plastics.”

Forbes has a list of America’s largest privately held companies, 424 of which have yearly earnings over one billion dollars. We’ve grouped them by category for easier perusal, ranked by their earnings. Colorado is headquarters to twelve: TransMontaigne, First Data, Pro-Build Holdings, CH2N Hill Cos, Vistar, Sports Authority, Leprino Foods, Hensel Phelps Construction, TIC Holdings, MediaNews Group and NWH.

CONSUMER PRODUCTS:
Mars VA -Combos, Dove, M&Ms, Pedigree, Snickers, Uncle Ben’s Rice
Levi Strauss & Co CA Textile – Apparel Clothing
SC Johnson & Son WI Personal Products
Ashley Furniture Industries WI Home Furnishings & Fixtures
Rich Products NY Confectioners
MGA Entertainment CA Toys & Games
Mary Kay TX Cleaning Products
Alticor MI Personal Products
Conair CT Personal Products
JohnsonDiversey WI Cleaning Products
ViewSonic CA Computer Peripherals
New Balance Athletic Shoe MA Textile – Apparel Footwear
Dawn Food Products MI Confectioners to Starbucks, Krispy Kreme
Roll International CA -Teleflora, Fiji Water, POM, Suterra
Genmar Holdings MN Recreational Boats
Williamson-Dickie Manufacturing TX Textile – Apparel Clothing
McKee Foods TN Confectioners: Little Debbie, Sunbelt
Samsonite MA Personal Products
NewPage OH Paper & Paper Products
Bose MA Electronic Equipment
WL Gore & Associates DE Textile – Apparel Clothing
Milliken & Co SC Textile – Apparel Clothing
MTD Products OH Recreational Goods, Other

RETAILERS:
Toys “R” Us NJ Toy & Hobby Stores
Dollar General TN Discount, Variety Stores
Menard WI Home Improvement Stores
Neiman Marcus Group TX Department Stores
84 Lumber PA Home Improvement Stores
Hallmark Cards MO Entertainment – Diversified
Michaels Stores TX Specialty Retail, Other
Belk NC Department Stores
Burlington Coat Factory NJ Apparel Stores
Linens ‘n Things NJ Home Furnishing Stores
Sports Authority CO Sporting Goods Stores
Bass Pro Shops MO Sporting Goods Stores
Fry’s Electronics CA Specialty Retail, Other
Mervyns CA Department Stores
Follett IL Specialty Retail, Other
General Parts NC Auto Parts Stores
ShopKo Stores Operating WI Discount, Variety Stores
Petco Animal Supplies CA Specialty Retail, Other
Discount Tire AZ Auto Parts Stores
Guitar Center CA Music & Video Stores
Academy Sports & Outdoors TX Sporting Goods Stores
Rooms To Go FL Home Furnishing Stores
Hobby Lobby Stores OK Toy & Hobby Stores
Barnes & Noble College Booksellers NJ Specialty Retail, Other
Duane Reade NY Drug Stores
LL Bean ME Catalog & Mail Order Houses
Newegg.com CA Specialty Retail, Other
GNC PA Drug Stores
Goody’s Family Clothing TN Department Stores
Les Schwab Tire Centers OR Auto Parts Stores
Beall’s FL Department Stores
PC Richard & Son NY Specialty Retail, Other
Micro Electronics OH Specialty Retail, Other
Sutherland Lumber MO Home Improvement Stores
Boscov’s PA Department Stores
24 Hour Fitness Worldwide CA Consumer Services
Ritz Camera Centers MD Specialty Retail, Other
Schottenstein Stores OH Home Furnishing Stores
Cinemark USA TX General Entertainment
Marc Glassman OH Drug Stores
Bally Total Fitness IL Specialized Health Services
ClubCorp TX Consumer Services
Forever 21 CA Apparel Stores
BrandsMart USA FL Specialty Retail, Other
Steve and Barry’s NY Apparel Stores

HOSPITALITY:
Hilton Hotels CA Lodging
Love’s Travel Stops OK Lodging
Carlson Cos MN Lodging
Global Hyatt IL Lodging
Delaware North Cos NY Specialty Eateries
Ilitch Holdings MI Restaurants
Buffets MN Restaurants

GROCERS:
Meijer MI Grocery Stores
HE Butt Grocery TX Grocery Stores
Giant Eagle PA Grocery Stores
Cumberland Farms MA Grocery Stores
QuikTrip OK Grocery Stores
Hy-Vee IA Grocery Stores
Save Mart Supermarkets CA Grocery Stores
RaceTrac Petroleum GA Grocery Stores
Wawa PA Grocery Stores
Wegmans Food Markets NY Grocery Stores
Bi-Lo Holdings SC Grocery Stores
Stater Bros CA Grocery Stores
Sheetz PA Grocery Stores
Raley’s CA Grocery Stores
Golub NY Grocery Stores
WinCo Foods ID Grocery Stores
Schnuck Markets MO Grocery Stores
Demoulas Super Markets MA Grocery Stores
Brookshire Grocery TX Grocery Stores
Bashas’ AZ Grocery Stores
Houchens Industries KY Grocery Stores
Holiday Cos MN Grocery Stores
Marsh Supermarkets IN Grocery Stores
K-VA-T Food Stores VA Grocery Stores
Kum & Go IA Grocery Stores
Big Y Foods MA Grocery Stores
Gate Petroleum FL Grocery Stores
Foodarama Supermarkets NJ Grocery Stores
Thorntons KY Grocery Stores
Brookshire Brothers TX Grocery Stores
Minyard Food Stores TX Grocery Stores
Inserra Supermarkets NJ Grocery Stores
Stewart’s Shops NY Grocery Stores

FOOD SUPPLY:
C&S Wholesale Grocers NH Food Wholesale
US Foodservice MD Food – Major Diversified
Reyes Holdings IL Food Wholesale
Gordon Food Service MI Food Wholesale
MBM NC Food Wholesale
OSI Group IL Meat Products
Roundy’s Supermarkets WI Food Wholesale
HT Hackney TN Food Wholesale
Keystone Foods PA Meat Products
Perdue Farms MD Meat Products
Schwan Food MN Dairy Products
Eby-Brown IL Food Wholesale
Schreiber Foods WI Dairy Products
Vistar CO Food Wholesale: ROMA
Alex Lee NC Food Wholesale
Grocers Supply TX Food Wholesale
HP Hood MA Dairy Products
Services Group of America AZ Food Wholesale
Dot Foods IL Food Wholesale
Leprino Foods CO Dairy Products: mozzarella cheese
Rosen’s Diversified MN Meat Products
Ben E Keith TX Food Wholesale
Smart & Final CA Food Wholesale
Maines Paper & Food Service NY Food Wholesale
Foster Farms CA Meat Products
Koch Foods IL Meat Products
Red Chamber Group CA Food Wholesale
Shamrock Foods AZ Food Wholesale
ContiGroup Cos NY Meat Products
Pinnacle Foods NJ Food – Major Diversified
Great Lakes Cheese OH Dairy Products
GSC Enterprises TX Food Wholesale
Michael Foods MN Dairy Products
Bozzuto’s CT Food Wholesale
Goya Foods NJ Food – Major Diversified
Wells’ Dairy IA Dairy Products

FARMING:
Cargill MN Farm Products
Transammonia NY Agricultural Chemicals
Murdock Holding Company CA Farm Products
DeBruce Grain MO Farm Products
Scoular NE Farm Products
JR Simplot ID Farm Products
Golden State Foods CA Farm Products
Dunavant Enterprises TN Farm Products
Bartlett & Co MO Farm Products

DRINK:
Southern Wine & Spirits FL Beverages – Wineries & Distillers
Charmer Sunbelt Group NY Beverages – Wineries & Distillers
Republic National Distributing Company TX Wineries & Distillers
Glazer’s Wholesale Drug TX Beverages – Wineries & Distillers
E&J Gallo Winery CA Beverages – Wineries & Distillers
Young’s Market CA Beverages – Wineries & Distillers
Honickman Affiliates NJ Beverages – Soft Drinks
Wirtz IL Beverages – Wineries & Distillers
Topa Equities CA Beverages – Wineries & Distillers

HEALTH:
US Oncology TX Hospitals
Vanguard Health Systems TN Hospitals
Quintiles Transnational NC Medical Laboratories & Research
Golden Living AR Home Health Care
Medline Industries IL Medical Instruments & Supplies
Bausch & Lomb NY Medical Appliances & Equipment
Biomet IN Medical Instruments & Supplies
Iasis Healthcare TN Hospitals
Life Care Centers of America TN Long-Term Care Facilities
Select Medical PA Long-Term Care Facilities
Catalent Pharma Solutions NJ Medical Instruments & Supplies
Ardent Health Services TN Hospitals
FHC Health Systems VA Specialized Health Services
Concentra Operating TX Specialized Health Services
Gateway Health Plan PA Health Care Plans
SavaSeniorCare GA Long-Term Care Facilities
TeamHealth TN Medical Practitioners
Cook Group IN Medical Instruments & Supplies

MEDIA:
Cox Enterprises GA Entertainment – Diversified
Advance Publications NY Publishing – Newspapers
Bloomberg NY Information & Delivery Services
Hearst NY Publishing – Newspapers
International Data Group MA Publishing – Periodicals
Reader’s Digest Association NY Publishing – Periodicals
AMC Entertainment MO General Entertainment
Univision Communications NY Entertainment – Diversified
Quad/Graphics WI Publishing – Periodicals
Ebsco Industries AL Publishing – Periodicals
Landmark Communications VA Publishing – Newspapers
Taylor MN Publishing – Periodicals
Metro-Goldwyn-Mayer CA General Entertainment
MediaNews Group CO Newspapers: Denver Post, Detroit News

INVESTMENT:
GMAC Financial Services MI Mortgage Investment
Fidelity Investments MA Asset Management
Capital Group Cos CA Asset Management
Edward Jones MO Investment Brokerage – National
LPL Financial Services CA Investment Brokerage – National

AUTOMOTIVE:
Chrysler MI Auto Manufacturers
Gulf States Toyota TX Auto Manufacturers – Major
JM Family Enterprises FL Auto Manufacturers
Tower Automotive MI Auto Parts
Cooper-Standard Automotive MI Auto Parts
Affinia Group MI Auto Parts
Guardian Industries MI Auto Parts
CC Industries IL Auto Parts
American Tire Distributors Holdings NC Auto Parts
Remy International IN Auto Parts
Plastech Engineered Products MI Auto Parts
Key Safety Systems MI Auto Parts
Interstate Battery Systems of America TX Auto Parts
KAR Holdings IN Auto Dealerships

BUSINESS:
PricewaterhouseCoopers NY Business Services
Ernst & Young NY Business Services
First Data CO Business Services
Allegis Group MD Information Technology Services
SunGard Data Systems PA Business Software & Services
Booz Allen Hamilton VA Technical Services
Grant Thornton International IL Business Services
Asplundh Tree Expert PA Business Services
SAS Institute NC Business Software & Services
Skadden, Arps NY Business Services
Reynolds and Reynolds OH Business Software & Services
Bain & Co MA Business Services
Jones Day OH Business Services
Freeman TX Business Services
Sidley Austin IL Business Services
White & Case NY Business Services
NCO Group PA Business Services
Alsco UT Business Services
Kirkland & Ellis IL Business Services
Affinion Group CT Business Services
RGIS Holdings MI Business Services
Mayer Brown IL Business Services
Lifetouch MN Business Services
Weil, Gotshal & Manges NY Business Services
Keane CA Business Services
Latham & Watkins CA Business Services
Guthy-Renker CA Business Services
Haworth MI Business Equipment
Vertis MD Marketing Services
Towers Perrin CT Management Services
Visant NY Marketing Services

CONSTRUCTION:
Bechtel CA Heavy Construction
Peter Kiewit Sons’ NE Heavy Construction
CH2M Hill Cos CO Heavy Construction
Whiting-Turner Contracting MD Heavy Construction
Gilbane RI Heavy Construction
Parsons CA Heavy Construction
JE Dunn Construction Group MO Heavy Construction
Black & Veatch KS Heavy Construction
Hensel Phelps Construction CO Heavy Construction
McCarthy Building Cos MO Heavy Construction
Yates Cos MS Heavy Construction
Hunt Construction Group AZ Heavy Construction
TIC Holdings CO Heavy Construction
Parsons Brinckerhoff NY Heavy Construction
Swinerton CA Heavy Construction
Zachry Construction TX Heavy Construction
AG Spanos Cos CA Heavy Construction
Turner Industries Group LA Heavy Construction
Barton Malow MI Heavy Construction
M A Mortenson MN Heavy Construction
Day & Zimmermann PA Heavy Construction
Warren Equipment TX Heavy Construction
Austin Industries TX Heavy Construction

BUILDING:
Pro-Build Holdings CO Building Materials Wholesale
Kohler WI General Building Materials
Clark Enterprises MD General Contractors
JF Shea CA Residential Construction
Structure Tone NY General Contractors
Jeld-Wen OR General Building Materials
Andersen MN General Building Materials
ABC Supply WI Building Materials Wholesale
Walsh Group IL General Contractors
Tishman Construction NY General Contractors
NTK Holdings RI General Building Materials
WinWholesale OH Building Materials Wholesale
Brasfield & Gorrie AL General Contractors
G-I Holdings NJ General Building Materials
Bradco Supply NJ Building Materials Wholesale
National Gypsum NC General Building Materials
Hoffman OR General Contractors
DPR Construction CA General Contractors
David Weekley Homes TX Residential Construction
Pella IA General Building Materials
BE&K AL General Contractors
William Lyon Homes CA Residential Construction
Weitz IA General Contractors
Mercedes Homes FL Residential Construction
Rooney Holdings FL General Contractors
Associated Materials OH General Building Materials
Beaulieu of America Group GA Home Furnishings & Fixtures
Suffolk Construction MA General Contractors
Kimball Hill IL Residential Construction
Drees Co KY Residential Construction
Shapell Industries CA Residential Construction
MWH CO General Contractors
Pacific Coast Building Products CA General Building Materials

WOOD:
Boise Cascade ID Lumber, Wood Production
Sierra Pacific Industries CA Lumber, Wood Production
North Pacific Group OR Lumber, Wood Production
Roseburg Forest Products OR Lumber, Wood Production
Columbia Forest Prods OR Lumber, Wood Production
Hampton Affiliates OR Lumber, Wood Production

EXTRACTION:
SemGroup OK Oil & Gas Refining & Marketing
Flying J UT Oil & Gas Refining & Marketing
TransMontaigne CO Oil & Gas Pipelines
Drummond AL Nonmetallic Mineral Mining
Sinclair Oil UT Oil & Gas Refining & Marketing
Colonial Group GA Oil & Gas Refining & Marketing
Oxbow FL Nonmetallic Mineral Mining
Ergon MS Oil & Gas Refining & Marketing
Red Apple Group NY Oil & Gas Refining & Marketing
Mansfield Oil GA Oil & Gas Refining & Marketing
Truman Arnold Cos TX Oil & Gas Refining & Marketing
Hunt Consolidated/Hunt Oil TX Oil & Gas Drilling & Exploration
Red Man Pipe & Supply OK Oil & Gas Equipment & Services
Dresser TX Oil & Gas Equipment & Services
Warren Equities RI Oil & Gas Refining & Marketing
Merit Energy TX Oil & Gas Refining & Marketing
Arctic Slope Regional AK Oil & Gas Refining & Marketing
US Oil WI Oil & Gas Refining & Marketing
Camac International TX Oil & Gas Drilling & Exploration

UTILITIES:
Energy Future Holdings TX Electric Utilities
Tenaska Energy NE Diversified Utilities

CONGLOMERATES:
Platinum Equity CA -USRobotics
Sammons Enterprises TX -Midland National Life Insurance, Briggs
Ingram Industries TN
Berwind PA -Elmers Glue
Petters Group Worldwide MN
Washington Cos MT -mining, rail, marine, equip

ELECTRONIC:
CDW IL Computer Based Systems
Freescale Semiconductor TX Semiconductor – Specialized
Avaya NJ Communication Equipment
Graybar Electric MO Electronics Wholesale
Kingston Technology CA Semiconductor- Memory Chips
Brightstar FL Communication Equipment
World Wide Technology MO Computers Wholesale
Infor GA Computer Based Systems

INDUSTRIAL:
Marmon Group IL Industrial Equipment & Components
Southwire GA Industrial Equipment & Components
Aleris International OH Metal Fabrication
Amsted Industries IL Diversified Machinery
O’Neal Steel AL Steel & Iron
Heico Cos IL Industrial Equipment & Components
Renco Group NY Steel & Iron
Metals USA TX Metal Fabrication
McWane AL Industrial Equipment & Components
McJunkin WV Industrial Equipment & Components
Electro-Motive Diesel IL Industrial Equipment & Components
Crown Equipment OH Industrial Equipment & Components
Rexnord WI Industrial Equipment & Components
Tang Industries NV Metal Fabrication
Soave Enterprises MI Steel & Iron
Indalex IL Aluminum
Euramax International GA Metal Fabrication
Advanced Drainage Systems OH Industrial Equipment & Components
Goss International IL Industrial Equipment & Components
Swagelok OH Industrial Equipment & Components
Utility Trailer Manufacturing CA Industrial Equipment & Components

CHEMICAL:
Koch Industries KS Chemicals – Major Diversified
Hexion Specialty Chemicals OH Specialty Chemicals
InterTech Group SC Synthetics
Berry Plastics IN Rubber & Plastics
JM Huber NJ Specialty Chemicals
Carpenter VA Synthetics
Wilbur-Ellis CA Agricultural Chemicals
International Specialty Products NJ Specialty Chemicals
Sigma Plastics Group NJ Synthetics
ICC Industries NY Specialty Chemicals
Nypro MA Rubber & Plastics

PAPER:
Central National-Gottesman NY Paper & Paper Products
Verso Paper TN Paper & Paper Products
The Kraft Group MA Paper & Paper Products
Gould Paper NY Paper & Paper Products
Appleton Papers WI Paper & Paper Products

TRANSPORTATION:
Unisource Worldwide GA Packaging & Containers
Schneider National WI Trucking
Swift Transportation AZ Trucks & Other Vehicles
Graham Packaging Holdings PA Packaging & Containers
Solo Cup IL Packaging & Containers
UniGroup MO Trucking
Altivity Packaging IL Packaging & Containers
SSA Marine WA Shipping
Dart Container MI Packaging & Containers
Plastipak Holdings MI Packaging & Containers
Crowley Maritime FL Shipping
Estes Express Lines VA Trucking
Global Aero Logistics IN Air Services, Other
Printpack GA Packaging & Containers
Pliant IL Packaging & Containers
Crete Carrier NE Trucking

WHOLESALE:
Kinray NY Drugs Wholesale
Consolidated Elec Distributors CA Wholesale, Other
VWR International PA Wholesale, Other
Anderson Cos AL Wholesale, Other
Quality King Distributors NY Drugs Wholesale
Software House Intl NJ Electronics Wholesale
Baker & Taylor NC Wholesale, Other
JM Smith SC Drugs Wholesale
D&H Distributing PA Computers Wholesale
Ma Labs CA Electronics Wholesale
Apex Oil MO Wholesale, Other
ASI CA Computers Wholesale
Orgill TN Wholesale, Other

MISC. SERVICES:
Enterprise Rent-A-Car MO Rental & Leasing Services
Frank Consolidated Enterprises IL Rental & Leasing Services
McKinsey & Co NY Research Services
Travelport NJ Consumer Services
HealthMarkets TX Insurance Brokers
West Corp NE Diversified Communication Services
Boston Consulting Group MA Research Services
Knowledge Learning OR Education & Training Services
Maritz MO Research Services
Education Management PA Education & Training Services
Laureate Education MD Education & Training Services

MISC:
JD Heiskell & Co CA NA
Vought Aircraft Industries TX Aerospace/Defense – Major Diversified
Ash Grove Cement KS NA
Deseret Management UT NA
Safety-Kleen Systems TX Waste Management

Predatory bank strikes again…

They might try to sue me, but I don’t owe them any money… mainly because I was a) never dumb enough to fall for their shit and b) didn’t have any property to triple-lien mortgage in order to get one of their loans.

Talking, of course, about Countrywide.

THE major player in the subprime mortgages >selling those mortgages for stock options > getting the Yankee government to bail their thieving asses out (but not the people whose mortgages they’re foreclosing)

They’re all over Cable TeeVee now, pushing their same old Bill Consolidation Loan, (available, of course, only to homeowners)

And where are they getting the bread to buy up more homes at a discount rate?

Could it possibly be that multi-hundred billion dollar bailout “our” president gave them?

Yeppers, true American “Conservative” values in action. Spend your way out of debt.

Sincerest apologies if this seems repetitive… but sometimes the madness they’re pulling is so damned unbelievable you have to write it out or speak it out loud, just to focus on the fact that it is actually REAL.

They’re redefining the classic definition of Chutzpah.

An American Socialism?

In the current housing bankruptcy “crisis” which was in fact created by the privately owned Fed through interest rates that reached 1% in 2003 combined with lax oversight of the banks, the bail out now being talked about in Congress will help… no surprise… the banks by and large. It is meant to deceive the public again by using words such as “helping” the homeowners, or “saving” peoples homes. NOTE: When you save a mortgage you save the bank’s payments by insuring they keep coming in. Besides the fact that people don’t own their homes, the banks do!

Regardless, in a socialist system this kind of gross manipulation would never have happened in the first place. And the half honest sensible solution by these charlatans in Congress should be to refi these homes to these homebuyers at the new lesser value. Because the value is lost anyway. And these homes were wildly overvalued by an out of control speculatory financial cabal. Besides, the bundled debt obligations and structured investment vehicles are worthless. Adding misery, the value of these homes will keep crashing. The rub? The banks and Investors made millions off these paper schemes and walked away… and probably paid little or no taxes. And now, the home buyers who were preyed upon by these lenders, owe money on a devalued home that was used only as a commodity by the “gentlemen” on Wall St. to manipulate, through the creation of CDO’s and SIVs? Sure! That’s capitalism. Systemic political and corporate corruption. And it’s going to get worse.

Congress desperately needs this property tax, interest payment, revenue stream to keep flowing to the banks and the states. But the reason this is a problem for Congress of “what is the best poison” to cure this, is that to bail out the home buyer who got screwed, is using tax money to keep receiving tax money. It’s double taxation!! And a zero sum game… besides rewarding the crooks. More deficit spending. But the Fed doesn’t care about homeowners and thusly told Congress as much by introducing Paulson’s new scheme to have the Fed take over the duties of the SEC and oversight of the big investment banks and their financial debauchery and chicanery. To keep the graft and secret deals going. The “dark trades” as they’re called. And spineless Congress cannot protest. They are owned by the Fed. In fact they are linked in responsibility by their repealing of the Glass-Steagall act with Greenspan’s urging (which Clinton didn’t veto) and attaching the Commodities Reauthorization Act attached to an appropriations bill in 2000. Ahhh the rewards for the capitalist elite are sweet indeed. No accountability, no worries, no chance of getting the blame. The yellow press at their beckon call.

Socialism would put all properties under the ownership of the people with all rents going to the citizens public fund and distributed to each social association for necessary services, loans, needs. There is no reason for housing or land to have any kind of increased value over the years. NONE. Ask yourself why your car then, doesn’t appreciate in value? Or your furniture? Real estate has been another way to oppress and exploit people by putting them into massive debt and making them pay banks twice the value of the home over the term of the loan. Besides the fleecing by the middlemen realtors and speculators using homes as commodities,(thus the current death spiral in housing). Have you ever looked at your amortization schedule? On a fixed rate 30 year loan? You pay twice or more of purchase price, if you paid off your loan! And you’re paying the bank first. We are insane for agreeing to this but that’s why the banks are the most powerful sector of capitalism. Which include the privately owned Federal Reserve. Oh you say, I made thousands when the market was good! No, you made the banks richer and more powerful by putting the next person into new debt for 30 years at 1 1/2 to 2 times the mortgage payment. Now your house increasing in value, puts upward pricing pressure on all homes and finally drives them out of reach of buyers. Thus the 1% housing bubble. For every person who “wins” in the capitalist system, 8 people lose (and those who depend on them). Otherwise you wouldn’t have a system where 10% of the population own 85% of the household wealth and property. The trick is to keep you thinking you’re winning when you’re really just up to your neck in debt in this American Casino Land.

Capitalism is a constant barrage of fairy tales and propaganda aimed at deluding the masses into believing there is no other way a social/economic system can be run. And that to be rich (or at least have the opportunity-possibility to be) is the ultimate goal because that is the genuine expression of self freedom and self worth! Or the lie that mercantilism and worker owned production could not work alone… without the corporate structure or Wall St. But the facts on the ground show us the truth, that capitalism is a fascist system designed to concentrate wealth at the top, steal our productive gains, and by doing so, makes those at the top the most powerful, privileged members of a society. It’s Monarchical. A plutocracy. Oligarchs rule. Fascism! Congress, the court system and state/city regulatory systems are subservient in every way to maintaining the fascist construct. Question: Ever taken part in an organization by volunteering to help change one of the many injustices in this country? You know what I’m talking about then. Wall after wall after obstacle after pot hole after bought off politician …all lined up to trip you, slip you and flip you upside down. New rules to increase petition signatures required for public ballots. Electronic vote stealing and manipulation. Redistricting. Third parties crushed. City council and board meetings held during weekdays. Hundreds of fees and licenses required to run business. Lobbyists at every turn. Zoning codes that dis-allow creative housing solutions and energy use. State insurance commissions. Mineral rights sold for pennies on the dollar… On and on and on… Unless of course your organization/church is involved in taking up the slack for capitalisms failures… then you’re a Mother Theresa! What’s that saying? “I work to feed the poor, they call me a saint. I ask why the poor have no food, they call me a communist.”

Many people I talk to, on all fronts, are frustrated. And many realize that it is the corporate structure, their power to manipulate policy, to move jobs overseas, encourage wars, and the massive deregulated profit taking and currency manipulation that is at the center core of this American milieu. Besides the fact that no one I talk to has make a thin dime or dollar on Wall St. But the thing I keep running into are differences on how to solve the problem without changing the system drastically. A hypothesis that can be presented is that there is much delusion and neurosis in this land. The idea that we can somehow keep the system we have and make it work for the masses of productive working people, is the delusion as repeatedly, the corrupt one party system consistently proves otherwise. The neurosis is contained within this same idea that is the crux of the delusion. Knowing that something needs to change drastically and on the other hand knowing (by experience or observation) that it is irrational and impossible within the corrupt fascist matrix that will not allow drastic change that is needed. This creates neurosis. The constant tension of this negative psychic entrapment, is energy that has to be released and is finally. Usually negatively in some way. But it could be positive and productive IF there were a real alternative to work toward. Democratic socialism.

Socialists are realists. They are objective creative intelligent humanitarians who know that this delusion and neurosis is not healthy and requires a clean break from the causation. Often I am scoffed at by others for this view. Where? Where would – could this happen? I think that if it’s possible anywhere it would be in a state that seceded from the nation. Vermont’s trying and testing the water. Though even then, there would be no consensus for a socialist form of citizen led, decentralized government. No, until the public is re-educated as to the true intent and purpose of democratic socialism and its platform, and can be persuaded that exploitation of man by man is unacceptable, they will forever bicker and fight among themselves, as children who fight for a place in the lunch line or over possessions. Seemingly without the skills to reassess, re-strategise, and break away from the malignancy present all around us. Socialism takes a deep commitment and concentration to assess the situation on the ground (objectivism) and rationalize, then actualize the alternatives that will then benefit the real producers of capital (us) and replace the owners of the means of production and pushers of propaganda. It’s time to consider socialism as the correct answer to our dilemma.

More to the Elliot Spitzer political hit

“The Spitzer hit happened because Spitzer proposed to take over the three biggest bond insurers, and separate their mortgage backed
security business from their AAA business, after Moody’s down-rated all three AAA insurers to junk.”
-quote from a CIA Yahoogroups post. Here’s the story I found from NakedCapitalism. The bond insurers, or monoline companies, were down-rated, and many cities have lost billions on municipal bonds, retirement funds etc… due to the sub-prime cancer…. Looks like Elliot Spitzer WAS threatening the monolines.

This Global Research article supports what Spitzer knew about the sub-prime debacle years ago. And what he tried to do about it.

Walks like a political hit… talks like a political hit… Who were clients (1) through (8)?

They must have threatened his family… for him to take this lying down. FBI dirty tricks…. high Bush/Cheney command at work? Sure. Always in these kind of political killings. They compromise someone, then blackmail, or threaten family, force them to resign, and the media complies… Not that Spitzer might not have had a weak spot for high priced call girls… but there is no history of this behavior from him. Someday the truth might come out fully. Some bulldog investigative person will expose all…

Bush does math the same way he does English…

Like “nukular” or “is our children learning”

Take for instance, the lies told to get us into Iraq errr Iran errrr D) all of the above. The crazy dictator who was poised to attack his neighbors, the threat to world security, the anthrax, smallpox, mousepox, yellow cake Uranium, and of course the 500 metric tonnes of Nerve Gas… 1,102,311.3 pounds… which is substantially more than Zero. zilch nada rien nix bupkis… (I checked the actual conversion on a units calculator).

Now, I never learned the formulae for Algebra or Calculus or even most Geometry. I know that Pie are round and Cornbread are squared.

I can do math intuitively. Most of the time it works.

A trillion dollars is 1 million squared. 1,000,000 x 1,000,000. it’s been pointed out that even a trillion mosquitoes would be hard to lose, misplace, hide…
…and they weigh less than a tenth of a gram.

(Except for the east Texas mosquitoes, the ones you carry an extra shotgun with you in order to provide Anti-aircraft fire against them… big as turkeys, and everybody gets a drumstick…)

But the low estimate is that a Trillion dollars is well, unACCOUNTed for. The money missing from the Republican party’s own trust fund is by their published estimate, $990,000, or 99% of a million.

And of course, having a cool Megabucks walk away without permission, and the Senators on the watchdog accounting agency give the investigators a blatantly forged document that’s allegedly an “internal audit”,
the Great Bunch of Guys who did this are the ones who say the missing funds are just under a mill…

and the regulators and investigators who say that it’s over 3 million, why they’re just lying…

A projected $5 Terabucks surplus has not only been wiped, but now is a $5 trillion deficit.

Bush’s own investments in Carlyle Group, heavily damaged by their predatory lending practices, coupled with quickly laundering the funds by selling the bogus mortgages, They just almost got wiped out but a miracle occurred, they got a bailout.

Not the people who lost their homes, no, they still have to “git out! Now!”…

Now, you don’t hear that very loudly spoken on the news… Just as a Deus ex Machina coincidence, that announcement was made while the Bush-anointed federal prosecutors were handcuffing the “Sheriff of Wall Street”, the most powerful overseer and regulator and, the one most outspoken against the Bush deregulation and the havoc it was known beforehand that it would cause..
Over a prostitution scandal.

That scandal kind of overwhelms the 220 Billion dollars that are being used to bail out a company in which the President of the United States has large holdings.

220 billion just as a coincidence is 8 months of budget for “tax & spend Democrat Liberal” Jimmy Carter.

His entire budget for his entire term of office came to just over a trillion. Which is just under a third of the budget for this year for Bush.

that’s one Very Bad error in basic math the BushMaster made.

More to follow…

Parasitical capitalism exposed

Got Real Player?
 
Two hours of excellent deconstruction of the big financial parasites and how 2008 will see a depression and a transfer of tax burden (bail out) onto the working and what’s left of the middle class. Banks are calling in loans on hedge funds and hedge funds don’t have the money (lost it gambling) so they are selling their assets (any assets) which include stocks. That’s why we see the big drops in the stock market. And the writing off of billions by the banks …large and small. And their stock price declining.

If the Fed keeps lowering interest rates (printing money to save their banking and wall street buddies) we’re screwed and it won’t help. That’s the same as me giving someone more money who is already in deep debt and has no way to repay me. They, the Fed, has screwed things up so bad we’d still be f__ked if they raised interest rates. It’s a liquidity fix one way and a credit tightening the other. But either way credit is cut off due to all the debt.

And all of this due to the subprime and criminal mortgage lending practices of the banks the Fed is supposed to be watching. Greenspan is a crook of magnificent proportion! He should be behind bars!! But it’s a systemic problem of corrupt fascist business model since the Fed took over the management, value and issuing of our currency in 1913. And largely amplified after the 1971 de-coupling of gold from the dollar. Dr Hudson explains how it’s all working to our demise.

This was in August before we see now Kucinich, like Paul, is being kept out of the debates and marginalized by the media. Hudson is Kucinich’s financial adviser. Some of you may not agree with his tax solutions but regardless, this is a scathing indictment of the current globalist capitalist financial/economic system. Deeply corrupt and terminal.

Dr. Michael Hudson on Financial corruption and collapse
Part 1 – Aug 15
Part 2 – Aug 22

Links on this site to the Aug 15 and 22 interviews.

Millions of Americans now face foreclosure evictions

A wave of foreclosures and evictions is about to sweep the United States in the wake of the sub-prime mortgage lending crisis. Several million Americans face eviction in the next couple of years from houses they thought were theirs.

The true cost of government and corporate corruption is soon to be felt by the US’s apolitical citizens that thought going along with it all was the best thing to do. There is a price to pay though. No longer will it just be Iraqis and Afghans, Lebanese and Colombians, Central Americans and Somalis that will be paying for our own political leaders’ criminality. It will be our flag waving neighbors, too. It will be us.

An economy gasping for air

Fed move risks long-term pain for short-term gain More cheap credit issued by the Federal Reserve was what drove the stock market rally yesterday. The US has an economy gasping for air.

The Iraq War has been a boondoggle that allowed the major international corporations to loot the American economy while providing no real service to either the Iraqi people or the American.

An economy based on allowing the real estate firms to loot America’s housing stock with cheap and crappy development, allowing the medical supply-insurance firms to loot funds needed for the elderly and the sick, and allowing the War contractors to loot funds from all of our society, but especially funds needed by children and their schools is an economy that can go absolutely nowhere except toward bankruptcy for the majority of the population.

The easy war is no longer going to be so easy for Americans as they now begin to lose their jobs, their mortgaged houses, and their ‘national security’. Why? We let ourselves be suckered into allowing the super rich to direct all our affairs without any brakes on their power.

Pop goes the US housing bubble- pop goes Colorado’s, too

First all, there is not just a US housing bubble that is ‘deflating’, there is also a world real estate bubble. It is well burst by now in Japan, and the bust of Japan’s over inflated housing market was one of the prime causes of the crash of that economy more than a decade ago. Japan still has not yet recovered.

Before the market burst in Japan, Americans were scared that they were being economically bypassed by Japan. Then as the US bubble fully inflated there has been American euphoria that our economy appeared so strong. Today there is mainly fear about the US economic future. Things look grim.

Though Colorado is not yet considered one of the US real estate’s metro ‘dead zones’ like Boston, Miami, San Diego, etc., we can see how the bubble has sprouted across the Colorado landscape. Everywhere, there is new ugly housing that has just recently been built on the outskirts of the major Colorado metropolitan areas. Easy come, easy go.

I think of these areas as instant slums. There are few trees, no community, and long commutes amongst and across this plasticized landscape. Meanwhile, there are FOR RENT signs in the older neighborhoods, as people foolishly went rushing off to buy that new, but inferior, housing in the slurbs..

They often bought it with money they just are not going to have, but thought that their ‘investment’ had to just go up, up, up! It doesn’t, and if people begin to lose their jobs they will soon go bankrupt and be unable to pay the mortgage. So much for ‘investment’…

Imagine a near future where many of these shoddy housing areas will be full of vacated properties. Houses that were poorly built in the first place, will begin to fall into quick disrepair. Pop goes the US housing bubble and pop shall go Colorado’s development bubble, too. This is a poor way to plan (if it can be called planning?) communities. Speculation (haste) makes waste, and the landscape will look even more bare than it does now while the development is still fairly new.

Even worse, the housing bubble was built on cheap gasoline and ample supply. That just is not going to be the case, and the US government effort to rob and control the remaining world supplies of underground petrol by military force, are just adding to the economic chaos we will have to soon endure.

Columbia Savings revisited

subprime.jpgTwo memorable things in my life were tied to Columbia Savings. The first was the explosion of the space shuttle Challenger. I was a recent college graduate working for a large international accounting firm, KPMG Peat Marwick. I remember sitting in a conference room, clad in a conservative business suit, already on hour 5 of an 18-hour workday. These were the days before the Internet; we still relied on the Big 3 to provide us with news. One of the higher ups came into the room, solemn look on his face, and turned on the television. The ten of us sat there and watched hope gone awry….seven lives gone due to an improperly sealed O-ring.

A few years later, the “Feds” came in and took the CEO, the CFO, and several others out of the building in handcuffs. It was a scary sight. These were our friends…our role models. What the hell? What was going on?

The S&L crisis changed the American way of life. Without an extensive legal or financial background, you may not understand how. But, trust me, rules were changed. I worked for the next several years with the Resolution Trust Corporation (RTC), the branch of the government created to ensure that we would all enjoy a safe financial future. They were a bunch of dumbshits who had absolutely no chance of being hired by Peat Marwick, or any other reputable company. Like so many, the government is a safe haven for idiots who crave authority.

Moving on. Despite the noble efforts of the RTC, the country is facing another financial crisis. As interest rates have gone down over the past several years, a new brand of leech has been unleashed on the unsuspecting public. The mortgage broker. We are in a housing crisis due to the prevalence of SUBPRIME loans. Let me explain. In the past, a family had to meet certain requirements in order to obtain a mortgage. They had to earn enough income, own assets, show that they would be able to meet ongoing financial obligations. Banks and S&Ls had strict underwriting requirements. They extended credit and collected interest in return. Borrowers had to be a PRIME candidates to qualify for a mortgage loan.

Today, the mortgage industry has gone wild. There are zillions of mortgage brokers who can find ANYONE a loan. They shop around for a third tier underwriter who is willing to lend the money. The broker receives a large commission. The underwriter receives an origination fee and various other payments. Neither care if you are in over your head. They will offer you an initial rate of 2 or 3% with adjustable rate mortgage (ARM), and convince you that rates won’t go up much. You can afford it. Buy that bigger house. Once the deal is inked, the lender simply takes the cruddy mortgage portfolio and sells it to the next prick in line, greedy for the soon-to-be usurious interest payments.

For the past two years, mortgage rates have increased. Over a trillion dollars of ARM loans are due to reset in the next 18 months. Homeowners’ adjustable payments have gone from $400/month to $600 to $1500. With no end in sight. Foreclosures are at an all time high. Too bad for the idiots, you say? Well, I would normally agree with you. But let’s hope that you don’t have a house to sell. As the banks divest themselves of the properties they’ve foreclosed on, real estate prices will be driven into the ground. The lenders will have to write off trillions of dollars of bad loans, likely rendering many of them insolvent. Huge investment funds tied to subprime loans will become worthless. Many Americans will lose their homes, their market investments, and their ability to obtain future credit. I’m predicting another bail out that will cost the taxpayers billions.

Meanwhile, my best friend saw the potential in the industry, despite the fact that she knew nothing about mortgage banking, and earned $18,000. Last month.

A puppeteer

puppeteerI wanted to study dance in college. I wanted to perform on Broadway. I wanted to walk through campus, and life, with “jazz hands.”
 
As a freshman, I was at CU-Boulder, living the life of a lab rat as a Molecular/Cellular/Developmental Biology major. My older brother was a year ahead of me, also an MCDB major, brilliant beyond belief. He seemed to understand the “cell,” with all of its asinine complexity, at an intuitive level. He understood physics, chemistry, had memorized the Periodic Table and was even capable of making hilarious jokes about it. I, meanwhile, stumbled around campus humiliated by the forehead crease left by my lab goggles wondering what geek could help me figure out the molarity of my latest unknown.

I eventually changed my major to business, accounting more specifically. It wasn’t so much that I was wildly excited by debits and credits, I’m still not, or that most of the gorgeous fraternity boys were in the B School (they generally studied “finance,” accent always on the second syllable, and went on to be successful brokers or developers), but that I didn’t come from a particularly wealthy family and I needed a career, not just an education. Becoming a CPA seemed a safe bet. It has proven to be such.

Because of my college experience, and maybe my perceived lack of personal creative freedom, I always find it interesting to hear what young people are studying these days. I wonder how the parents feel, especially the fathers, when they hear that their young son is going to be, say, a puppeteer. Does this revelation cause Dad to puff out his chest and smoke a stogie on the back deck? Does Mom call over her coffee klatch girlfriends to boast about her son’s incredible prowess with a hand puppet?

When my son (now 21) was little he had a puppet as his constant companion. We got it at Poor Richard’s Toy Store and it was, sad to say, a beaver. Furry brown with lewd teeth and a hopeful demeanor. Bren wanted to take it everywhere. Unfortunately, after about five minutes, he wanted me to hold it. He was a very engaging child and, frequently, when he saw someone he found interesting he would shout, in a loud Mickey Mouse voice, “Look at my mom’s beaver!” This, of course, had an EFHutton effect. Everything would slow to a crawl, people would turn their heads deliberately toward me to see how I would respond.

I learned quickly to deal with this recurrent nightmare. I “worked up” a little beaver dance and performed it on the person nearest to me that appeared somewhat sympathetic. I would take “Beav” and bite the person’s forearm and say “Come help me build my dam!”

I don’t want to malign puppeteers. In fact, I want to laud puppeteers. In my immediate family, we have three CPAs, a pathologist, an attorney, a pharmaceutical drug rep. Our parents are proud of us. We all have careers and children, big houses and big mortgages, lots of demands for our money and our time. We’re living the American dream!

I can’t help but wonder, though, if any of my siblings ever feel like I do while I’m scurrying through the office clutching my mechanical pencil and my laptop, wearing the latest Ann Taylor fashions, picturing myself instead in fishnet hose and a bustier, standing under the bright theater lights, bowing demurely to thunderous applause. When my older brother holds his stethoscope does he secretly wish it were a paintbrush? When my sister makes her closing arguments in front of the judge and jury, would she rather be doing improvisational comedy in a little club somewhere? I don’t have any idea.

I know one thing. I hope my children will pursue their passions. It may be an uphill battle. Already their Dad and I have college funds set up for each of them. We have firm ideas about which elite schools they should attend and what careers might hold promise. I imagine we’ll have a doctor or two, maybe a physicist, probably a computer whiz. The IQ tests have been administered and we know where their strengths lie. But not where their dreams lie.

I have secret wish. I want a puppeteer.

Jarts

JartsDo you remember the good ol’ days when we were reckless and free? Unencumbered by good sense and family responsibilities? When we were able to get together with friends on a sunny day, have some hot wings and cold beer, and play a dangerous little game called Jarts? Yard darts, lawn darts, whatever you recall, were steel-tipped weighted mega-darts that one hurled gleefully into the air toward a yellow plastic circle across the yard. It was truly a “team” sport because everyone at the party had to pay close attention to the action to avoid being impaled in the temple. The wayward dart was most likely tossed by the belle de jour in a polka dot sundress (oh! how we laughed!)…the “new girl” once again brought by Ashton Chase, our friend with connections to Chase-Manhattan. Dammit, Ashton. Stop it. Think about us for a change.

We were the only people with a kid at the time…a preschool-aged boy. I know for a fact that one of his fondest childhood memories (oddly, he remembers this in slo-mo) is of 6 adults dropping full beers in unison and racing across the yard to body check him into a fence to save his life. Kind of a boozed up backyard version of Swan Lake. Without the tutus. Well, except for Ashton.

Sadly, they have made the game of Jarts ILLEGAL. I don’t know who “they” are. Whose job is it to troll back alleys, looking for young people having fun, and then steal our toys and jump up and down on them in black Gestapo boots while we hold our blankies and our beers and sob aloud at the spectacle? Yes, them. They took our darts and our plastic rings and left us with no way to amuse ourselves.

That’s when we starting smoking pot. Dang it! They’ve got us here too. Not only have they made our harmless little substance illegal, they’ve made pretty little glass sculptures with rubber hoses and small pieces of very thin paper off limits as well. What a bunch of fuddy duddies. Puh-lease. Let us have our fuuuuunnnnnn! We are functioning members of society, doctors and lawyers and brokers and developers and financial analysts, all of us. Now we can’t smoke pot and play jarts in the privacy of our own yards? Well, then we quit. We are all going to go on welfare and stop paying our mortgages and and mowing our useless lawns and wasting our time volunteering with the PTA.

Actually, I have a better idea. I was on eBay this morning trying to buy a set of illegal lawn darts and I noticed that, instead of the $14.99 I remember, a used (vintage) set of crappy darts is going for more than $200 (and are to be used for nostalgic display purposes only). And, pot. Well, we all know what a nice sticky bud of Wowie Maui is going for these days (okay, I’ve dated myself and revealed that I don’t actually smoke pot but I still like it conceptually). Perhaps we should walk away from the rat race and make our fortunes selling reasonably harmless illegal things! Yes! We could each play a role in the family business. I, the CPA, could count the beans and file the tax returns (oh, wait, tax free! ha!). Tad, the broker, could invest the profits and set up retirement accounts for each of us. Ashton, the banker, could fund our start up costs. Betsy, the attorney, could get us out of trouble and Dave and Tim, the doctors, could act as money launderers. Chris, the developer, could find us a place to grow our inventory. The only thing we need is a horticulturalist to help us with the hydroponics. Horticulturalists? Any takers? Why don’t we know any horticulturalists? Dang.

Come to think of it, I think we’ll start manufacturing and selling yard darts as well. At $200 a pop, it won’t take long until we we’re ready to retire en masse and move to gentler climes. Sipping mai tais, swimming with dolphins, playing limbo. Just like the good ol’ days.

I hope they outlaw beer pong as well. Bora Bora, here we come.