$35,000… for a Tanning Bed…

Last summer, at the BEGINNING of the Real Estate Crash… there was a house (too late, it’s been bought) right across 23rd street from the Goodwill processing center for $10,000.

A FOUR BEDROOM HOUSE in a decent neighborhood, near shopping, schools, the Rocky Mountains all that… for ten grand.

And the lady who wishes to be President in charge of Vice for the United States, running on a platform as a Fiscal Conservative, blows more than three times that for a Tanning Bed.
That ain’t all that blows, apparently.

Hey, Ms Palin, there’s millions of Americans who don’t make 35K in TWO years wages.

Who’s out of touch with the people? YOU ARE…

Who’s the Big Spending Pork Barrel with Legs? YOU ARE…

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.

Where’s the independence on Independence Day?

American FlagThe Fourth of July is celebrated as America’s ‘Independence Day’ but where’s the independence? Sure, you’re free to get drunk, barbecue up some meat product on the grill, shoot fireworks off dangerously, and run your mouth about why one just supposedly has to vote for McCain or Obama, BUT…

Yes, but where’s the independence in Independence Day? If you have low expectations don’t worry about it OK? But some of us do think about it some and we’re still working on obtaining Independence for ourselves, our families, and our communities. There’s really little to celebrate yet.

Look, Independence Day was a flawed day from the very beginning, and just like our many other very flawed national holidays like ‘Columbus Day, Thanksgiving, etc., it just lacks real substance big time. Can’t you sense that? The Fourth of July is just a very shallow celebration, with the flag waving and all. Americans do not have independence. No, we have no more independence than a group of serfs under the King once did. We are merely blinder and more ignorant than the serfs were, it seems.

We live in a top down authoritarian society, and our lives are ordered around to the most minuscule detail. The not so hidden hand of authoritarianism is everywhere, and it tells us how to think, and what to do. Many of the more daft of us don’t see it much though. We’re too busy earning the bread, shopping for bread, and shitting to notice how society is actually arranged. We don’t quite know why so many of us are miserable?

We see the guns, we see the orders, we see the lack of respect, but many of us just can’t seem to figure anything out. So some go to church, some take dope, some just smoke their cigarettes. Some sell Mary Kay, some sell real estate, some sell Amway, or do Ebay. Some play the lottery, some play Bingo, some shoplift for their gambling instead. Indian Casino anybody?

All this supposedly is a sign of liberty and independence, according to the pundits! Watch TV, play public radio on KRCC… you’ll see what I am saying. They’ll do their puff pieces about the Fourth.

But seriously? Where’s the independence on Independence Day? I don’t see it. It’s just not there.

Join Lawyers for McCain! Make some money…

The Elect McCain web site has an interesting group for certain people to join. It is called Lawyers for McCain, which is an apt group to have around for McCain’s Arizona cronies.

Even with the totally corrupt Dubya Klan in office still, one of McCain’s early campaign co-chairs, Ariz. Congressman (and ‘Juris Doctor’…lol) Rick Renzi, has been already been indicted this year for using his office to try to make himself some sweet real estate deals. But there is even more work for McCain’s lawyers to spin their webs around, with McCain having other co-chairs in his election committee… co-chairs like East Texas con, Phil Gramm.

McCain is a fitting candidate for the Republican Party of Pure Corruption. Which party will be able to buy this election? The Chicago ‘change’ gang of disguised DNCers, or the Arizona grouping of lawyers, insurance companies, and Pentagon military-industrial welfare pigs around McCain? Spin away, Media Whores! The fun has just begun!

Eco-conscious, yes. Sustainable? Hardly.

COLORADO SPRINGS- Johann of First Affirmative Financial Network, asked me to relate my experience at the now notorious PPJPC meet-up to discuss Economic Sustainability. Though Tony wasn’t able to attend, he’s initiated a debate here: is there such a thing as “economic sustainability?” Since I was there, perhaps I could elucidate, because I believe I heard the answer.

I was quite impressed by the questions brought to the event by the audience, who proved to be no shrinking violets. The interests ranged from some who wanted to indict the Fed, to those who questioned economic growth as being sustainable. The housing market for example is predicated on real estate increasing in value. Must it? Should it? Can it? Successful investing is inherently about your investment growing, otherwise you are losing money. Can investment be done without growth? When posed this question, our intrepid investment-biz guest braved an answer: “I don’t know.”

I supposed as much, hence my initial skepticism about the subject of the talk. But I expected to hear about options, not to hear my foregone conclusion foreclosed. What then does FAFN, our fellow sustainability boosters, have to offer? It turns out it is the usual green investing. Working Assets was so 90s, “sustainability” is the eco catch-phrase of the new millennium. It’s still about the 3Es, as Johann told us they say in the greening biz, or the 3Ps: people, planet and profit.

Johann’s employer’s concrete claim to “sustainability” was a novel certification of a green office remodel. No small task, although the pitch from Johann is that it requires a surprisingly small expenditure. So, small task. And FAFN is all about giving recognition for setting a good example. Here’s how this works in their business model: Chiefly their portfolio is comprised of only green stocks, plus stocks you might want to encourage to be green. General Motors is decidedly not green, but you could recommend them as an incentive for GM to show some eco-thinking. That’s an actual example from our discussion. I’m hoping if Monsanto issued a press release that they would be recycling their break-room Dixie cups, our sustainability cheerleaders wouldn’t jump tp award the bold step with a buy recommendation.

I came to the PPJC meeting with an even more hardcore question. How can someone who makes a living from the interest earned on money, consider themselves sustainable? Our guest’s response was “there certainly are plenty of us around.” But is that an answer? Economically sustainable, yes. Environmentally? Hardly. I believe that is the crux of what Tony raises as a paradox.

Charging interest for the loan of money has presented an age-old moral dilemma. The function of money was to facilitate barter, as one good or service was exchanged for another. Religious thinkers have most often concluded that a person should not profiteer from the exchange of money itself, adding as they have, no value to the equation. Jesus was certainly against it. Although Johann interpreted “go forth and multiply” to mean you should multiply your money.

Whether it’s moral or not, how can money lending be environmentally sustainable? If you are producing no good or rendering no labor, what should you be taking out of the system for your consumption? Can a negative-contribution be sustainable?

When I first moved to UCLA, and saw the mass of wealth built around the west side of Los Angeles, the opulence seemed to me built on an intangible cloud of finance. I wondered what kind of bank vacuum lay behind the scene, sucking from the natural and human resources of the world to sustain the decadence beyond imagination of LA’s suburbs, foothills and ridge-tops. I concluded something then. The arbitrary financial arrangements, probably no more legitimate than royal lineage, or less usurious than a loan shark, were the only grip the owners had on the victims of their exploitation. Short of militarized enforcement, it would become tenuous at best, and certainly will not be sustainable, economic or otherwise.

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.

Death spiral economy

The fascist business model in full view, unapologetic. Unaccountable. The Democrats have no intention of changing it. They have to protect their major donors. Obama is fully backed by Wall Street capitalists. He talks the talk of reform but he cannot and won’t walk the walk. He won’t tell you the real problem is the FED who created this mess. He’s just another black face in a high place. Powerless. Selling the illusion of hope. No substance.

USB bank today declaring more massive losses/write-offs. Muni-bonds and huge retirement funds will soon be reporting major losses. Member of PERA? Watch out! And of course when states start hurting bad, the taxes on these criminals who created this won’t be raised, nor fees increased on the oil companies who’ve raked in massive profits over the last 5 years… rather services and state education funding will be cut dramatically. Adding to the death spiral. Don’t you just love American capitalism? It’s a war/service cheap imports, low wages race to the bottom economy. And the vultures are coming out picking the bones of the unemployed and devalued real estate. Predators and scavengers. That’s the real U.S. economy.

We’ve lost all the gains from our productivity, we could have enjoyed, to these corporations and bankers/financial firms and war arms mfgrs. in their increased profits and paper schemes. Then by job loss, then poverty, our few possessions are lost-sold to the bottom feeders and other desperate folk.

A new American Socialism is needed that will stop war, take back the control of the currency from the Fed, abolish the IRS, abolish the corporate structure, abolish Wall Street and its speculators and commodities traders, and make the banks use social credit with low or no interest loans. Only low admin fees allowed. Then fully fund education through college, provide a national dividend to all citizens, fund a natl. health insurance program and return the means and ownership of production to the workers so that no non-productive parasitical outsider (stockholder) can make a profit from that company. Then turn our economy inward to the benefit of our people first with few exceptions in limited import and exports. And a radical energy transformation to zero point sources and hydrogen. Of course non of this will ever happen. As a famous autistic said: “I’m not a stupid person… Jenny.”

“Not surprisingly, neither in Paulson’s remarks nor in the 214 pages of the plan he released is there any suggestion that Wall Street firms or their top executives be called to account and held legally culpable for the economic and social disaster that has resulted from their reckless and often deceptive, if not outright illegal, policies and actions. US Treasury plan shields Wall Street speculators” -wsws.org

April Fools: The Fox To Guard The Banking Henhouse
– by Dr. Ellen Brown – 2008-03-31

U.S. Treasury Regulatory Reform Proposals: Hapless, Helpless, Hopeless
– by Richard C. Cook – 2008-03-31

New World Order. A Planned World Economy
Mankind at the Turning Point Part 3
– by Brent Jessop – 2008-03-31

Republicans and “Free Market” Zealots Bring Death to America
– by Paul Craig Roberts – 2008-03-30

Economic Cycles and Political Trends in the United States
Part I – by Prof. Rodrigue Tremblay – 2008-03-28

Is an International Financial Conspiracy Driving World Events?
Bankers now control national monetary systems in their entirety.
– by Richard C. Cook – 2008-03-27

The Fed’s Bailout: Whose Money Is It?
– by Richard C. Cook – 2008-03-23

Speculative Onslaught. Crisis of the World Financial System: The Financial Predators had a Ball
Danger of a domino collapse of banks akin to that in Europe in 1931?
– by F. William Engdahl – 2008-02-23

Derivatives – A Potential Financial Tsunami?
– by Daniel Apple, Rick Baugnon -2008-03-21

A New President Should Seize Control of the U.S. Monetary System
– by Richard C. Cook – 2008-03-20

Can u say Ushuaia?

Seals-Beagle-ChannelUSHUAIA, ARGENTINA- Today I am in Ushuaia, on the island of Tierra del Fuego, the southernmost city in the world. Woot, woot! I took a leisurely boat ride through the Beagle Channel — so named for the ship in Charles Darwin’s famous journey — and learned about the Yamanas, the indigenous Fuegons as they like to be called. Right. More on the Yamanas later, but I think they will prove my theory about the body’s natural thermostat.

Nearby are the Straits of Magellan (Ma-fricking-gellan…think of it!) and the Drake Passage, one of the world’s most dangerous waterways (Go Shackleton!). It’s the place where the Atlantic and Pacific Oceans commingle, where nature definitely has the upper hand, where time is measured by migration and weather, not by the clock. I can understand why this part of the world led Darwin to ponder the origin of species. It’s quite an amazing place.

Another cool thing about being far far away from Estados Unidos is that you meet people from other countries. It’s not so much the people that I care about, for they will be gone from me in mere days. But the information they impart about the U.S. is very interesting.

Today I had dinner with a guy from Madrid. He had some interesting things to say. He said — I swear I’m not making this up — that the country’s current financial meltdown has been orchestrated by what he called old money. The old money players — the names we all know and many that we don’t — have always held the cards and been able to take the chips at will. With the rise of the dot-com era, and the explosion of high-technology in general, the old fuddies have been losing their grip on the American power grid and have been forced to share the pie, loosely defined as the system, with young upstarts who play an entirely different game. Backgammon versus Wii.

The meltdown will lead to the collapse the financial system as we know it (Bear Stearns, Lehman Brothers, JP Morgan Chase — who, oh who, will be next?!), the dollar will tank (but who really cares when you’ve moved all of your assets into offshore investments and South American real estate?) and the government-corporate consortium will join hands, chant tick tock the game is locked, nobody else can play, and the lawn bowling can continue uninterrupted.

And for those of you who rail against conspiracy theorists, everyone who lives outside the U.S. is a conspiracy nut. However, they prefer to be called intelligent!

Gotta run. My thirty minutes are up!

In praise of Pope Benedict and his boys

Get out of jail free monopolyThe Vatican has updated the list of the seven deadly sins! We are no longer to be concerned only with gluttony, lust, greed, sloth, wrath, envy, and pride. As if these weren’t more than enough! Oh, woe is I.

The new cardinal sins (those that require absolution from a priest to be forgiven — otherwise you’re lookin’ at a stint in Purgatory) are pollution, mind-damaging drug use, and genetic experimentation. Monsignor Gianfranco Girotti, the head of the Apostolic Penitentiary, also made mention of the ever-widening gap between the haves and have-nots. “The poor are always becoming poorer and the rich ever more rich, feeding unsustainable social injustice….If yesterday sin had a rather individualistic dimension, today it has a weight, a resonance, that’s especially social, rather than individual.”

The church seems to be walking the walk here, at least where the Earth’s fate is concerned. During Pope Benedict’s papacy, Vatican engineers have developed plans for some Holy See buildings to use solar energy, including photovoltaic cells on the roof of the auditorium for pilgrims’ audiences with the pontiff.

As for fighting social injustice, one needs only visit the Vatican to sense that perhaps the church has a way to go on this one. I’ve heard suggestions in the past that the church sell some of its astounding collection of artwork to help the poor. The reply is that the art should be considered public wealth, equally available for all to see. A reasonable argument, especially if one has the resources to make it to the Vatican.

As for the billions in real estate owned by the church, reference is usually made to Jesus’ obvious love for the temple in Jerusalem as justification. The big beautiful churches, after all, were not built at great monetary cost, but through the dedication of thousands of laborers and through the prayers of the faithful. Again, a reasonable position. The Vatican, the artwork, and the great churches of Europe are part of human history and probably shouldn’t be sold off to collectors and developers for fast cash.

It’s not often that I find myself in agreement with the Catholic church. But I have to say, I think they are on the right track here.

Parking spaces disguised as empty shops

Fake retail and office spaces given over to parking
You know your downtown is prospering when it cannot find the real estate space for parking structures. It’s not that we don’t have them, Colorado Springs likes to disguise them as real buildings.

The pitch is that these parking structures with the faux facades of plate-glass shop windows along the sidewalk, and reflective office windows above, can be readily converted to real shops and offices as the city requires. However do they propose to deal with the half of each parking deck floor which is angled as a ramp?

For the time being however the city has added three of these structures, to further encourage commuters to eschew mass transportation. Walking past on the sidewalk you get the impression of having chanced upon a car dealer showroom. But soon the oil stains and lack of doorways reminds you that the tenancy is metered. At night the un-upholstered concrete innards look even more deserted.

Is it a good idea, not having to look at our cars? And to further expand our false-urban neighborhood with unpopulated shops and public spaces?

Eulogy for a Republican

My pal John passed away this weekend. He succumbed to cancer after a 3-pack-a-day habit. He’d been an army officer, insurance agent and counter clerk at the West Side post office. It was in the latter incarnation that I knew John, but at one time he used to live in the same condo complex as I, and therein lies a tale I’d like to relate.

One of John’s coworkers told me about his memorial service, and teared up remembering the bagpipes. I asked if nice things had been spoken about John. She told me with John there had only been good. I asked like what, considering to many customers John could be very surly. Immediately she replied there was nothing he wouldn’t do for anyone. I’ll come back to that one in a mo. Otherwise she remembered fondly John’s wicked sense of humor and his co-workers chimed in about his mastery of rubber band war. As an example of the former, John delighted in applying hand lotion to door knobs and critical postal utensils and then leave his coworkers to the consequences.

The only cross words I ever received from John happened when news reached him of my antiwar activities. He told me that during the Vietnam War, protesters had spit on returning soldiers. Had anyone done that to him, he would have decked them, is what he felt the need to tell me. I didn’t complicate his account by pointing out that the infamous spitting event had been contrived to smear the antiwar movement. Not one soldier nor any protester has ever come forth to claim they witnessed the much derided event.

But I did have a bone to pick with John, but never took the chance. He was on vacation when I stormed into the post office to give him what for, and afterwards I reconciled myself to his opposite political view. It was the eve of the last election, the week before actually, when John through despicable dishonesty put a big wrench in State Representative Mike Merrifield’s reelection campaign.

Retired high school music teacher Mike Merrifield lived in our condo community, and owing to the disparate political orientations of the units’ multiple owners, a consensus had to be reached about what to do about election yard signs. It was not enough to agree that inhabitants could post whatever signs they wanted outside their abodes, what about those with units deeper in the complex with no exposure to passing traffic?

At first the sign posting was a free-for-all, with Republican signs adjacent those of Democrats, whomever’s sign was let be. But soon signs were being replaced by their opponent’s. I knew something was up when fresh lawn signs kept winding up in the dumpster. Finally the homeowners had to reach an agreement. Everybody was opinionated, but only Merrifield was a candidate, and he didn’t have frontage real estate. If the neighbors around the edges couldn’t see themselves permitting any Democratic Party signs without wearing Merrifield down by surreptitiously removing his, no lawn signs would be permitted. As president of the condo HOA, John our Post Office activist presided over an agreement to forbid all lawn signs.

No sooner was the decision made, that John promptly called some friends with a video camera. Actually it was a PR outfit that did work for the local Republican party. They set up a video camera across the street, a little ways down the block, to lay in wait. Then someone put out a Republican lawn sign where it was agreed there would be none.

Later that morning the camera captured Mrs. Merrified pulling up the opponent’s sign. The video footage was sent to the TV stations and Merrified was widely derided, even by his fellow Democrats. Merrifield and his wife answered the reporters who besieged their front step that the lawn signs had been a contentious issue, and that his wife had acted in accordance to the HOA decision not to allow any signs.

But when the reporters sought out the HOA president, John, to confirm the HOA policy, John calmly cleared up the issue: He told them he didn’t know what those incorrigible Merrifields were trying to pull, because there had been no such agreement.

New Year’s Day predictions and the chiselers

When The First rolled in, I studiously avoided making any New Years Predictions. After having predicted that we were weeks away from the US attacking Iran, that we were heading above $3/ gallon gas to $5 a gallon, and that the economy was crashing within days, I decided to temporarily set aside my ‘The End is Here’ sign. Was I right to do so?

Not really. Not only is the US economy crashing but the US economy is helping crash the entire world’s economy. Behind the crash is the rampant corruption of the US military-fed business community. These welfare chiselers are followed closely by insurance chiselers, real estate chiselers, and politician led government chiselers. The rich leading the US are corrupt, and their corruption is now running rampant even into and among the lower classes. With ‘leaders’ like the business community has been allowed to force upon us, we are now swimming in a sea of economic corruption at every level.

Everywhere we go we see people working to provide poor services for us. Restaurants and grocery stores provide us with crap to eat. Hospitals and nursing homes provide us disease instead of health. Military and police make us more insecure, not more secure. Transportation companies build roads not needed, deliver vehicles not needed, and guzzle precious and declining amounts of fuels to drive us around in circles. Our phones ring constantly with unsolicited messages to buy, buy, buy. Our TVs do the same. Our newspapers deliver us mounds of trash to buy, buy, buy, but what???

We are going down, because we are ruled by chiselers. That’s my New Years Prediction.

Jan Martin marches to a new drummer

Colorado Springs Progressive City councilwoman Jan MartinI wonder what it is that happens to citizens as they move up the ladder of authority, that without fail they become protective of the powers that be. I have my ideas.
 
Colorado Springs should welcome the infusion of more Amy funds to be all that it can be.

Erstwhile populist Jan Martin went from community activist concerned about our city’s growth, to being a City Council member singing their tune. Addressing the PPJPC meeting today, Martin spoke in favor of bringing more soldiers to Fort Carson, and in favor of a megalithic development that promises to swallow a lot of our downtown flavor, both in the interest of “stimulating economic growth.” Pity.

Jan Martin will tell you that she now has the constituency of the city to think about. Don’t you like that about our representatives? They have to represent everyone else. We hear it from Skorman to Salazar, from Morris to Merrifield. You don’t get that from the stooges put into office by the real estate developers and business leaders. They serve the interests of those who brung them. We work hard to elect like-minded populist politicians and they wind up too moral to take sides. Well, that’s a theory.

I’m inclined to imagine that when someone rises to prominence in this or perhaps any city, they’re paid a visit by a waste management associate. You’ve seen the type, big hands, monosyllabic, with a simple message. If you do anything to rock this boat, anything, we’ll plow our truck into your daughter or granddaughter as she walks home from school. OTHERWISE, best wishes with your new vip status, enjoy yourself. We’re behind you all the way.

Post-dead canoeist found on Google Pics

How did they trip up the Hartlepool canoeist who paddled out to sea five years ago, leaving his widow with life insurance money, only to surface this week in a London police station claiming amnesia? A snapshot of John Darwin and his wife in their new Panamanian condo, confronted with which his wife confessed “well it explains a lot, doesn’t it?”
 
How the photo came to light is an inspiration to all amateur internet sleuths. An ordinary UK housewife googled John and Anne in Panama. Google Images came p with the picture on the real estate website of their Panamanian broker. Try this at home!

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.

We lose they lose

On the forbidden sidewalkProtesting at the side of the street does seem futile at times, it certainly seems so just thinking about it. But out there catching each others eyes, you’re reminded of its mysterious power, particularly when you’re shown to what extent those against you are willing to go to keep you from being there.

When we first turned up Monday at the Broadmoor Space Symposium Arms Bazaar, we were quickly moved from a section sidewalk declared off limits to us. The police could not explain exactly what ordinance or why, except that they had orders to keep us off the Lake Circle sidewalk. We complied the way reasonable people do, because the area to which we were confined seemed at first glance perfectly suitable. We occupied the corner of Lake and Lake Circle, where we could hand fliers to symposium attendees crossing to the Convention Center. But this gave us contact with only a fraction of the participants in attendance. The majority of the weapons dealers stayed inside the center, whose windows faced the sidewalk area forbidden to us.

We decided to accept the “free speech zone” given us until we could research the new restriction, mindful of the recent Appeals Court verdict which upheld the Broadmoor’s discretion to cordon off its entire neighborhood as a security zone for the NATO conference some years back. Citizens for Peace In Space lost that appeal.

It took Bill Sulzman until 10pm Wednesday to get someone at the CSPD to speak to the issue of the exclusive use permit granted to the Broadmoor. That representative, a Commander Overton, agreed to meet Bill the next morning to negotiate where protesters would or would not be restricted.

Was this a victory of discourse and civility? It certainly was a victory for the Space Arms Symposium. They effectively kept us off their turf until the last day, then thwarted a legal challenge by deciding to give in. We got to stand on the contested sidewalk for a snowy hour of the last day of the conference.

This is where less confrontational pacifists hinder their protest efforts. It might be well to resolve your differences by arbitration, meanwhile the bad guys hold the real estate. In the end our message does not get out, the war rages on, we are entangled in bureaucratic battles until our rights are upheld. This was the tactic used at the DNC, RNC, FTAA, WTO, and indeed our own St Patrick’s Day: detain the dissidents until their opportunity to be heard has passed. It’s an abridgment of our civil liberties, and the government factors into its budget the liability of likely legal judgments.

But what price lost free speech? What cost for every day the war goes on? We know that number. What cost for each further contract for more WMDs? If protest could stop that, that’s the price the government owes us. Could street protest have that effect? Somebody thinks so.

Last year at the Broadmoor, the reaction to our protest was very telling. The first day we were nearly arrested for trying to walk along the edge of a cordoned area, the same contested sidewalk. The head of Broadmoor security was screaming for officers to arrest us. The next day I was assaulted by an overwrought Marines commander in jogging shorts. He circled right to me and flung his hands around my throat, pushing me back until policemen pulled him off. The next day we rode a bicycle up and down the bike path adjacent the blocked sidewalk, to relentless harassment and endangerment by the security vehicle. Somebody doesn’t like to have to gaze upon our message. We could see military brass last year watching from the windows with arms crossed.

Our banners, then and now, quote Henry Ford “Take the profit out of war and you’ll have peace tomorrow” and President Eisenhower “Beware the military industrial complex.” We also have this haunting question: “will your children survive your work?”

The arms manufacturers in attendance at the Broadmoor are normally well buffeted from the real world. They work in industrial complexes and high rises out of reach of humanist and spiritual voices of conscience. They certainly don’t have to see the results of their work, the suffering or the poverty. They ride high on the war gravy train.

The Broadmoor gathering for me is the rare chance to look these people in the eye, to examine the war profiteers in their insular habitat. They might be bellicose, or proud, or defensive, and they may deride us. If it seems their consciences are not keeping score, the symposium organizers seem to have more faith in them than we do.

On this occasion the military industrial complex beat us, they kept us out of sight for most of their event. But we won too. No we didn’t get to challenge their method in court, but we did get to stand in the forbidden zone of their periphery, if but for a morning, a cold snowy morning. Though I believe the increasing snow fall lent our message the credibility of determination. We got to aim this banner right at them: “Will your children survive your work?”

Global Warming leaves The Gazette in dense fog

Funnier than the poor selection of comics that The Gazette carries, are the poor selection of opinion pieces on their editorial page. And on no issue do these Neanderthals post more comedy than on environmental issues. For example, they must be the last people on the entire planet still poo-pooing the idea that global climate has actually been changed by human activity and the overuse of fossil fuels!

Today, right above their pompous “Principles of Freedom’ nonsense ‘We believe that freedom is a gift from God… blah, blah, blah) is media whore Thomas Sowell’s trashpiece titled, “Global-warming gasbags launching an eco-inquisition’. Can’t you just imagine it? Exxon-Mobil execs being burned at the stake, Cheney with his nuts in a vice, and Bush’s rear end lit up as the natural gas is burnt off secondary to oil production? All victims of eco-inquisitors!

Also on the same page, was their editorial piece against ‘social engineering’. What is that in their minds? Well, they call trying to promote less environmentally destructive vehicles ‘social engineering’ by ‘wackos behind the wheel putting the pedal to the meddle.’!
What a group of total nincompoops. Who paved over their brains with such nonsense?

And a week ago, they were saying that endangered wolves in the state were nothing but rats. The extermination of earth species to them is part of a natural process where real estate developers rule over other forms of life, by the survival of the fittest. That type of ‘social engineering’ they totally adore and love. Engineering towards extermination of other life forms on the planet, no problemo.

What a bunch of social retards they seem to favor and collect at Freedom Communications, publisher of The Gazette and other local brands of demented toilet paper!

The land developer loan default racket

Did you read about the developer who had to default on a 5.3 million dollar loan for a project in Denver? What of that? Poor guy has to give back his $5.3M play toy if he can’t pay for it, is that what you’re thinking? He bit off more than he could chew maybe? Hardly.

Particular real estate schemes vary in their complexity, but here’s what happens in a nutshell. Developer sets up a Limited Liability Corporation to shield himself and his colleagues from financial risk. This entity receives financing from the banks and passes the money on to the participants, the brokers, builders, and management. This pays for the land, the labor and the overhead, being the developer’s cut. Whom the developer chooses as participants might also be considered his cut, since the money goes to who he says.

The point is, the money goes. By the time the project is defaulted to the tune of $5.3M, the money is already spent. By that I mean the money is already earned/gleaned/pocketed. It’s not like defaulting on an auto loan and having your car repo’d. Sure the banks get to repossess the project, but the profit’s already been squeezed from it. The bank will put the property on the market, sell it for a fraction of what it’s worth, and take a loss. Their loss is applied against the bank’s income, so in essence since they pay less in taxes, the taxpayers pay for that deficit. The national deficit grows by an amount that the developer and his friends have pocketed. Some of it went for laborers and materials and local fees, certainly, but the management percentage, that’s theirs. And whoever provided the labor, or sold the materials, or received the fees won too.

And who buys the project from the bank? The next developer, who gets to do another number on us all.

I’ve seen developers at city meetings, tanned, one hand in their pocket of some loose fitting slacks, soft leather loafers, big smile, they’re the top of the food chain and they know it. But I don’t think there’s any harm in looking closer at how they prey on our economy, on you and I. And if you should chance upon one of them standing on some open space conversing with a partner holding blueprints, and he has to cross the road to get to back to his LX, I’d say give him a scare at least. He may know how to beat the system, but has he got your number?

They Don’t Care and the jumping mouse

Rodent member of endangered ecosystemMighty Mouse or Mighty Myth? asks The Gazette of their readership today and yesterday in quarter page announcements in their paper. “Does the Preble’s Meadow Mouse really exist?” (Or did that evil environmental movement make it all up?)
 
The editorial board over at our loony local rag really is brain dead when it comes to environmental affairs. Just weeks ago they were also running an editorial expressing doubts about whether global warming was real. (Or did the evil environmental movement make the whole thing up?)

The announcement suggesting that it was all “mighty myth” that another wild animal was endangered, was part of the announcement to invite people to a Right Wing think tank presentation at the U. of Colorado-Colorado Springs campus, all designed to push for the virtual annulment of the Endangered Species Act. So I headed over there at noon to show my support for the jumping mouse and Yogi the Bear vs the real estate and construction magnates. Nature vs more crappy development was my message. It’s not just about the jumping mouse. It’s about whether we destroy all nature’s natural habitats or not.

Well, it turns out that my sign saying,
—They don’t care
—Developers just want to pave over nature and
—DAMN THE WILDLIFE!
provoked some interest as I parked myself inside next to some buffet items as the developers broke for lunch.

First, I was berated by some of the overly dressed crowd for having missed the morning presentations by the all Right Wing panel. Actually, they had one lonely environmentalist who had not made it yet from Denver. But how dare I have an opinion about the mouse without hearing all their important commentary?!!! My response was to just shuck it off. I told them I thought the whole thing was about the spotted owl, and I had heard enough about that rare bird already while living in Washington. Jesus, you tell me I came all this way about a mouse?

It turns out that some of the developers took my sign personally. So I had to discuss whether they were evil people or not. And then the two campus cops showed up, and I thought I might get scanned to see if I was a threat to Homeland Security. But Professor Null, jefe of the Right Wing think tank sponsor, said that he would vouch for me, and even offered me lunch. I thanked him, but told him I wasn’t sure whether their food was organic or not. But that I might come in and listen to their accumulation of proof that nature’s wetlands really were no longer necessary to preserve. Full speed ahead!

I only stayed 2 hours. I did get to hear the last panelist, the liberal who could make it from Denver. I also got to shake hands with Craig Manson, Bush’s creep who had formerly been put in charge over “our nation’s critters” to dismantle the Endangered Species Act. He was still working on it as I could see. Nobody quite like him since James Watt had been in charge. He was definitely the big wig invite for sure. I told him that I was sorry I had missed his work in the morning, but that I had read some interviews he had done online, and that “they were quite interesting,” as I politely and sarcastically put it.

One of our CS city councilman recognized me from the city council picnics we sometimes do together. We had a nice cheerful talk about torture, in which he told me that he believed that it did not exist. Then, ala Cheney, he told me that he was for it, except it did not exist! lol…. These White Men speak with forked tongue. He told me that he had family in the military, so that was why he had forked tongue. I will withhold his identity in order to protect the guilty.

I did have a few who came up and whispered that they were in agreement with my sign. But they kind of looked worried that they might get fired for fraternizing if done too openly. So was I too hard on the hard working real estate developers, as some of them had told me? “We’re not all bad.” Well, look at this list of the folk on the board of the Right Wing think tank co-sponsor of this event with The Gazette. Scroll down and check out the many developer folk at The Center for the Study of Government and the Individual

The material divide, affluence conspicuous in absentia

When you see luxury condos, they so often appear uninhabited. At least, you rarely see someone at the window, or on the balcony or in the drive. Seaside residences are like this too. Walk the beach, look up at the multimillion dollar homes, rarely anyone home.

Is this because those properties remain unsold? The real estate is too expensive for you, maybe nobody can afford them? Hardly. This phenomenon has to do with what separates affluence from the rest of us. Those who can afford million dollar lofts, condos, or estates, can afford several. They’re only ever 25% home. When they shop, they buy multiples of everything for each home, lest they have to pack between trips.

One of my favorite show-biz verite moments is captured on Randy Newman’s concert album Live at the Paladium. During an instrumental segue, Newman attempted to make small talk with Linda Ronstadt, with whom he was singing a duet. “How many houses do you have?” he asked her. Ronstad offered only a smile as Newman kept playing. “You know, most of these people only have one home.”

Freakonomics

Freakonomics co-author Steven Levitt gave a lecture at Colorado College about how economics can explain everything and credited the inspiration for his book: Jerry Seinfeld. Which explained perhaps why Levitt was stuck in the minutia.
 
The Colorado Springs audience spilled over two venues to hear the author because economics presents a particularly galling mystery as Americans face the plunging dollar, joblessness and a real estate bubble. A good deal of the audience left before the question and answer period perhaps as they realized that this trust fund tenured professor’s thesis was the equivalent of bizarro theory proving irrelevancies.
 
Levitt linked legalized abortions to decreased crime, instead of linking abortions to less poverty to less crime. He demonstrated how criminal hiearchy in the hood mirrored the management structure of McDonalds, instead of pondering which was a mirror and which was the model.

Neverland vs. Disneyland

Michael Jackson kid collectionOf course Michael Jackson is closing Neverland, his kid-themed estate in Southern California, he doesn’t need it, he’s gone to Disneyland!
 
(Caution: this article may get a little gross.)
 
The California Disneyland where children run around unattended? The Florida Disney world
with its similar kid-sized attractions? No, it’s just an expression. Jocko’s gone to the proverbial ne-plus-ultra destination for those who’ve hit the jackpot. Well you be the judge.

Michael Jackson got off charges of child molestation, statutory rape, contributing to the delinquency of minors, kidnapping, unlawful detainment, all now curiously summarized as “child abuse.” After which he immediately scooted out of the country! Despite the most unbecoming of evidence, Michael Jackson got away without being declared a sex offender. Maybe he knows something we don’t because he decided he didn’t want to stay within reach of U.S. law enforcement, and he obsconded to… Bahrain.

Where’s Bahrain? What’s Bahrain? Michael Jackson says he has friends there who he feels are more simpathetic to his inner whatever he is. His friend is a sheikh in Bahrain with oil to pay for harems.

Bahrain is like the United Arab Emirates, which are small sultanates set up by the British in such a way that the oil wealth would not have to be shared by national populations but rather by simply the occupiers of each particular stretch of desert. The Dutch did the same thing in Brunei, carved out of Indonesia. These are artificial borders meant to exclude the actual indigenous inhabitants who might require the traditional colonial investments in infrastructure and social welfare.

Imagine if instead of launching the California gold rush, Sutter had walled up his Mill, declared it an autonomous Sultanate, and all the gold wealth had gone only to fund vast automobile collections, Manhattan real estate investments, decadent harems and orgies, ad vomitum, leaving the rest of Californians to a tribal existance outside the flow of the gold largess.

What do Middle East sultans do with themselves which Michael Jackson finds so simpatico? It’s probably not to do with subjugating their populations with poverty and repressive religious dogma. Maybe it’s speedboat racing, who knows? More likely it has to do with the secretive harems, collections of captive sex partners lured and trafficked from all parts of the globe, reputedly the “white slave trade” which what do you wanna bet includes children?

To recap, how did the various pedophelia behaviors so graphically documented by Jackson’s prosecutors, from the Jesus Juice to the predatory grooming, come to be summarized as “child abuse?” Mere balcony-baby-dangling by comparison. This mirrors the current media subversion of the word rape, and all the horror it conjures, by using the more ambiguous term “sexual assault.”

Ahmadinejad and Hamas not denying Holocaust

Iranian president
No one is suggesting that the Holocaust didn’t happen, or that six million Jews weren’t killed by the Nazis. The mythology surrounding the Holocaust has to do with its aftermath: how the murder of six million Jews became justification for the creation of a Jewish state on land which belonged altogether to someone else.
 
That is the mythology about the Holocaust which natives of the Middle East would like the rest of us to contemplate.

Western media seems intent on perpetuating a distortion of the Muslim position. So intent are they to avoid questioning the legitimacy of Zionism that anyone who does is painted as a “Holocaust denier.”

No one is denying the Holocaust! And no one is calling for killing any more Jews! “Wiping Israel off the map” is a truncated translation of what the Muslim voices have expressed. It does not mean “off the face of the earth” or “eradicate” or “exterminate.”

Right to exist
Hamas is often described as not believing in Israel’s right to exist. It sounds so unreasonable. Everyone has a right to exist. But Israel is not a person, it’s an entity. Try this on for size. Does Jewish occupied Palestine have a right to exist? Did French occupied Algeria have a “right to exist?”

Algeria had a right to exist, and the French there had every right to exist, as a minority. And as we’ve seen with all former colonies, the majority population has an inclination to rise against its upper class oppressors. The west has of course the inclination to try to prop up those embattled regimes.

Israel was a nation created in 1949, carved out of the land of the Palestinians to make a home for European Jews. Israel is regarded by many as a last example of colonialism. White settlers laying claim to the lands of another people.

Now the Israelis are erecting a wall to separate themselves from the darker skinned Arabs. It’s an apartheid wall, and we’ve seen apartheid before. The Boers of Dutch ancestry no longer rule South Africa because the world wouldn’t stand for it.

Israelis have as much right to exist as anyone, as the Boers for example, but they don’t have a divine right to exist on the backs of their native brothers.

Apartheir wall   Israelis call it a “fence.” To construct it required demolishing entire Palestinian neighborhoods, often separating Palestinian farmers from their fields and orchards.
 
 

Off the map
When the Iranian president says he would like to wipe Israel off the map, he’s not saying he wishes to kill anyone. He didn’t say he wants to see Israel wiped off the face of the earth, he’s saying he’d like to see Israel off the map OF THE MIDDLE EAST!

Ahmadinejad even suggested that Israel relocate itself to Europe. If Europeans feel so bad about the Holocaust which they inflicted upon the Jews, why shouldn’t it fall to Europe to offer up some of its real estate for a Jewish homeland?

Ahmadinejad, like many Muslims, doesn’t see that it was Europe or America’s place to bequeath Ancient Judea to the present day Jews, a land which for the last two thousand years has belonged to non-Jews and went by the name of Palestine.

We all came from Africa. Does that give us a right to resettle it without regard to who’s already living there? Should someone resurrect Babylon, Alexander’s Greater Macedonia, or the Holy Roman Empire?

Hamas, and the PLO before it, speak of driving this foreign intruder from Palestinian land. The Muslims scattered the Israelites into Europe two thousand years ago. Now interlopers have brought them back and Hamas has pledged to drive them out again.

Imagine if America chose to return its Puritans whence they came, to England, where they weren’t terribly popular the first time. Perhaps the English would vow to expel the kill-joys once again to the New World.

As unreasonable as it was to redraw international borders to recreate a Promised Land, so too might it be unreasonable to undo the land grab of 1949. Perhaps the most pragmatic course of action would be to insist the Israelis and the Palestinians cohabit the promised land. They can govern themselves democratically and the chips will fall where they may. This age of enlightened democracy should have little patience for dogmatic racism and religious prejudice, from either side.

The world should be able to look upon these religious squabbles with impartiality. Although it seems Israelis are plenty worried that the secular west may not always grant Jewish fundamentalism more deference than its Islamic rivals. Therein lies the importance in not denying the Holocaust.

Holocaust myth
What peoples, among victims of genocide, have ever been granted their own ancient Promised Land as a redress for the genocide? None. Is this because the Holocaust was such a unique genocide? Indeed, to be labeled a Holocaust denier you merely have to be denying the uniqueness of the Holocaust.

When Iran president Ahmadinejad says that he wants to examine the myth of the Holocaust, he is threatening to challenge the prevailing Zionist interpretation.

Ward Churchill got in trouble with the Zionists because he wanted to compare the genocide of Native Americans to the Holocaust. He makes the case mainly because the policy of extermination conducted against the original inhabitants of the Americas is still denied, and as a result extensions of the policies persist.

I think the argument to prove Churchill’s point leads in an altogether different direction. This is because the Jewish extermination was not an act of imperialism against an weaker people.

The genocide against the Native Americans was like the systematic extermination of indigenous peoples everywhere: Australia’s aborigines, Indonesia’s Ache and Timorese. It is also the age-old mechanics of one people conquering another, like the genocide by the Turkish of the Armenians, and the recent actions of the Sudanese Arabs against their blacks.

The genocide against the Jews was class warfare upward. It belonged in a category like the Soviet and Chinese against their bourgeois and intellectuals, like the Khmer Rouge genocide of the urban Cambodians most of whom were ethnic Chinese, like the Hutu slaughtering of the Tutsies, like the traditional and recurring pogroms against Jews. It’s hard to say that even the Spanish Inquisition wasn’t after the usury profits of the Jews.

Thus antisemitism is less unique than its name implies, and resembles very much Marx’s class warfare where the proletariat is trying to come out from under its oppressors, or perceived oppressors.

The Holocaust is touted as religious genocide, hence the rationale for redress which honors their biggest religious wish: return to their Promised Land.

The Zionist count on the west’s continued support of that religious goal. They need an independent Israel with a homogeneous Jewish religion. They know that if they were to be integrated with the region’s present-day peoples, as a Jewish minority among Palestinians, they stand a good chance of being voted off the island.

So here are America and modern Europe, standing in support of a dogmatic religious group. It does not play well with others, and it insists in fact that it be segregated from everyone else, even as it usurps the land of others, and occupies adjacent lands under the pretext of its national security.

I have no doubt that victims of the Holocaust would themselves be shocked and shamed at the crimes that Israel is committing in their name against the peoples of Palestine.

Why America and Europe should side in religious solidarity with Jewish fundamentalists without sympathy for the Islamic fundamentalists is the consequence of believing a myth.