"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘Casino Capitalism’

Lords of Disorder: Billions For Wall Street, Sacrifice For Everyone Else

In Uncategorized on March 7, 2013 at 5:38 pm

Lloyd C. Blankfein.Oldspeak:”“This bank is anti-fragile, we actually benefit from downturns.”-Jamie Dimon of JPMorgan ChaseThe term “antifragile” was coined by maverick financier & analyst Nassim Taleb, whose book of the same name is subtitled “Things That Gain From Disorder.” That’s a good description of JPMorgan Chase and the nation’s other megabanks… These institutions are designed to prey off economic misery. They suppress genuine market forces in order to thrive, and they couldn’t do it without our ongoing help. The Treasury Department and the Federal Reserve are making it happen.” –Richard Eskow. One look no further than how Mr. Dimon and his sociopathic corporation  profits off the misery of the poverty stricken by administering food stamp benefits to see his demented thought in practice. “A catastrophe for you and I usually presents an opportunity for the Titans of capital. And the grievous economic crisis affecting so many American families is no exception — big business has found a number of ways to profit, directly, from Main Street’s economic pain. Like vultures descending on a rotting corpse, they’ve come up with a variety of innovative methods to pull the last scraps of meat off the bones of America’s middle-class” –Joshua Holland. It’s very clear if one chooses to look. The corprocratic controllers of our political class and economic systems, profit from disorder, downturns, and catastrophes. Money is being redirected  from the people and real economy via austerity programs to prop up and sustain these failed, morally and spiritually bankrupt enterprises.  Knowing this, how logical is it to conclude that obviously deleterious political and economic policies that have us hurtling toward economic and ecological catastrophe will be changed to benefit the people? Not very. The problem is systemic. The systems around which we organize our societies must be fundamentally changed. All the nibbling around the edges that passes for sound policy is largely illusory.If we hope to survive as civilization we can no longer allow merchants of death and disorder who dominate the Military-Financial-Political Industrial Complex to reign as Lords of Disorder.”

By Richard Eskow @ The Campaign For Americas Future:

The President’s “sequester” offer slashes non-defense spending by $830 billion over the next ten years. That happens to be the precise amount we’re implicitly giving Wall Street’s biggest banks over the same time period.

We’re collecting nothing from the big banks in return for our generosity.  Instead we’re demanding sacrifice from the elderly, the disabled, the poor, the young, the middle class – pretty much everybody, in fact, who isn’t “too big to fail.”

That’s injustice on a medieval scale, served up with a medieval caste-privilege flavor. The only difference is that nowadays injustices are presented with spreadsheets and PowerPoints, rather than with scrolls and trumpets and kingly proclamations.

And remember: The White House represents the liberal side of these negotiations.

The Grandees

The $83 billion ‘subsidy’ for America’s ten biggest banks first appeared in an editorial from Bloomberg News – which, as the creation of New York’s billionaire mayor Michael Bloomberg, is hardly a lefty outfit.  That editorial drew upon sound economic analyses to estimate the value of the US government’s implicit promise to bail these banks out.

Then it showed that, without that advantage, these banks would not be making a profit at all.

That means that all of those banks’ CEOs, men (they’re all men) who preen and strut before the cameras and lecture Washington on its profligacy, would not only have lost their jobs and fortunes in 2008 because of their incompetence – they would probably lose their jobs again today.

Tell that to Jamie Dimon of JPMorgan Chase, or Lloyd Blankfein of Goldman Sachs, both of whom have told us it’s imperative that we cut social programs for the elderly and disabled to “save our economy.” The elderly and disabled have paid for those programs – just as they paid to rescue Jamie Dimon and Lloyd Blankfein, and just as they implicitly continue to pay for that rescue today.

Dimon, Blankfein and their peers are like the grandees of imperial Spain and Portugal. They’ve been given great wealth and great power over others, not through native ability but by the largesse of the Throne.

Lords of Disorder

Just yesterday, in a rare burst of candor, Dimon said this to investors on a quarterly earnings call: “This bank is anti-fragile, we actually benefit from downturns.”

It’s true, of course. Other corporations – in fact, everybody else – has to survive or fail in real-world conditions. But Dimon and his peers are wrapped in a protective force field which was created by the people, of the people, and for … well, for Dimon and his peers.

The term “antifragile” was coined by maverick financier and analyst Nassim Taleb, whose book of the same name is subtitled “Things That Gain From Disorder.” That’s a good description of JPMorgan Chase and the nation’s other megabanks.

Arbitraging Failure

Dimon’s comment was another way of saying that his bank, and everything it represents, is The Shock Doctrine made manifest. The nation’s megabanks are arbitraging their own failures, and the economic crises that flow from those failures.

These institutions are designed to prey off economic misery. They suppress genuine market forces in order to thrive, and they couldn’t do it without our ongoing help. The Treasury Department and the Federal Reserve are making it happen.

We who have made these banks “antifragile” have crowned their leaders our Lords of Disorder.

Once Dimon told reporters that he explained to his seven-year-old daughter what a financial crisis is – “something that happens … every five to seven years,” which “we need to do a better job” managing.

Thanks to fat political contributions, Dimon manages them well. So do his peers. Misery is the business model. And by Dimon’s reckoning another shock’s coming any day now.

Money For Nothing

Bloomberg’s use of the word ‘subsidy’ in this instance can be slightly misleading. Public institutions don’t issue $83 billion in checks to Wall Street’s biggest banks every year. But they didn’t let them fail as they should have – through an orderly liquidation – after they created the crisis of 2008 through fraud and chicanery. Instead it allowed them to prosper from it, creating that $83 billion implicit guarantee.

As we detailed in 2011, the TARP program didn’t “make money,” either. Banks received a free and easy trillion-plus dollars from our public institution, on terms that amounted to a gift worth tens of billions, and possibly hundreds of billions.

That gift prevented them from failing. In private enterprise, this kind of rescue is only given in return for part ownership or other financial concessions. But our government asked for nothing of the kind.

Unpaid Debts

Breaking up the big banks would have protected the public from more harm at their hands. That didn’t happen.

Government institutions could have imposed a financial transaction tax, whose revenue could be used to repair the harm the banks caused while at the same time discouraging runaway gambling.  They still could.

They could have imposed fees on the largest banks to offset the $83 billion per year advantage we’ve given them. They still could.

But they haven’t. This one-sided giveaway is the equivalent of an $83 billion gift for Wall Street each and every year.

Cut and Paste

$83 billion per year: Our current budget debate is framed in ten-year cycles, which means that’s $830 billion in Sequester Speak.  You’d think our deficit-obsessed capital would be trying to collect that very reasonable amount from Wall Street. Instead the White House is proposing $130 billion in Social Security cuts, $400 in Medicare reductions, $200 billion in “non-health mandatory savings,” and $100 billion in non-defense discretionary cuts.

That adds up to exactly $830 billion.

No doubt there is genuine waste that could be cut. But $830 billion, or some portion of it, could be used to grow our economy and brings tens of millions of Americans out of the ongoing recession that is their daily reality, even as the Lords of Disorder continue to prosper. It could be used for educating our young people and helping them find work, for reducing the escalating number of people in poverty, for addressing our crumbling infrastructure, for giving people decent jobs.

It’s going to Wall Street instead.

Trillion-Dollar Tribute

The right word for that is tribute. As in, “a payment by one ruler or nation to another in acknowledgment of submission …” or “an excessive tax, rental, or tariff imposed by a government, sovereign, lord, or landlord … an exorbitant charge levied by a person or group having the power of coercion.” (Courtesy Merriam-Webster)

In this case the tribute is made possible, not by military occupation, but by the hijacking of our political process by the corrupting force of corporate contributions.

The fruits of that victory are rich: Bank profits are at near-record highs. Most of the country is still struggling to dig out from the wreckage they created but, as Demos’ Policy Shop puts it, “for the banks it’s 2006 all over again.”

On Bended Knee

“Millions for defense,” they said in John Adams’ day, “but not one cent for tribute.”

Today we’re paying for both. That doesn’t leave much for the elderly, the disabled, the impoverished, the children, or anybody else who doesn’t “benefit from disorder.” Nobody’s fighting for them in this budget battle.

That leaves the public with a clear choice: Demand solutions that are more just and democratic – or submit willingly to the Lords of Disorder.

America’s Descent Into Corptalitarianism: The New Extremism & Politics Of Distraction In The Age Of Austerity

In Uncategorized on January 30, 2013 at 5:18 pm

https://i0.wp.com/alexanderltremayne.com/wp-content/uploads/2012/02/corporate_mafia2.pngOldspeak:What is missing in the current debates dominating Washington politics is the recognition that the real issues at stake are neither the debt ceiling nor the state of the economy, however important, but a powerful and poisonous form of authoritarianism that poses a threat to the very idea of democracy and the institutions, public values, formative cultures and public spheres that nourish it. The United States occupies a critical juncture in its history, one in which the forces of extremism are not just on the rise but are in the midst of revolutionizing modes of governance, ideology and policy. The politics of disconnect is just one of a series of strategies designed to conceal this deeper order of authoritarian politics. In a society that revels in bouts of historical and social amnesia, it is much easier for the language of politics and community to be stolen and deployed like a weapon so as to empty words such as democracy, freedom, justice and the social state of any viable meaning. Arundhati Roy captures the anti-democratic nature of this process in the following insightful comment. She writes:

This theft of language, this technique of usurping words and deploying them like weapons, of using them to mask intent and to mean exactly the opposite of what they have traditionally meant, has been one of the most brilliant strategic victories of the czars of the new dispensation. It has allowed them to marginalize their detractors, deprive them of a language to voice their critique and dismiss them as being “anti-progress,” “anti-development,” “anti-reform,” and of course “anti-national” – negativists of the worst sort. To reclaim these stolen words requires explanations that are too tedious for a world with a short attention span, and too expensive in an era when Free Speech has become unaffordable for the poor. This language heist may prove to be the keystone of our undoing.

This undoing of democracy to which Roy refers, and the dystopian society that is being created in its place, can be grasped in the current subordination of public values to commercial values and the collapse of democracy into the logic and values of what might called a predatory casino capitalism where life is cheap and everything is for sale. More specifically, from the ailing rib of democracy there is emerging not simply just an aggressive political assault on democratic modes of governance, but a form of linguistic and cultural authoritarianism that no longer needs to legitimate itself in an idea because it secures its foundational beliefs in a claim to normalcy;7 that is, Americans are now inundated with a pedagogy of cultural authoritarianism whose ideology, values, social practices and social formations cannot be questioned because they represent and legitimate the new neoliberal financial order. This is a mode of predatory casino capitalism that presents itself as a universal social formation without qualification, a social form that inhabits a circle of ideological and political certainty and cultural practice that equates being a citizen with being a consumer – in other words, predatory capitalism is transforming into a universal ethic that has exhausted all political differences, economic alternatives and counter readings of the world in the service of benefitting a financial and corporate elite and a savage form of economic Darwinism.” –Henry A. Giroux

In a corptalitarian, crypto-faccist state, dissent is criminalized and ridiculed. The rule of law becomes arbitrary, fluid. The range of acceptable opinion is seductively narrowed. Extremism, manufactured fear and consent increase significantly. The status quo systems and structures around which the society is organized are rarely questioned, if so only superficially and transiently. Language is militarized, tightly controlled, and comes to mean something other than it was originally intended as lies become truth. Ignorance is viewed as strength, desirable, adorable, comical, normal. Perpetual war is used to bring peace, surgically, cooly, remotely, covertly, via killer robots “special forces” and “signature strikes”. Freedom becomes slavery as the wonders of wireless technology heralded as the tools to enable free and ubiquitous communications and interactions are now used to surveil, track, record, restrict, atomize, disconnect, control, monetize and manipulate communications, interactions and behavior. Mindless and ever-increasing consumption becomes more important than critical thinking. Inequality increases, with the bottom 50% controlling 1% of wealth, while the to 10% control 75% of wealth. Whistleblowers, pot smokers, lawful protestors, journalists, academics, go to jail, while polluters, torturers, white collars thieves, economy collapsers, and war criminals walk free. It doesn’t have to be this way.

By Henry A. Giroux @ Truthout:

The debate in both Washington and the mainstream media over austerity measures, the alleged fiscal cliff and the looming debt crisis not only function to render anti-democratic pressures invisible, but also produce what the late sociologist C. Wright Mills once called “a politics of organized irresponsibility.”1 For Mills, authoritarian politics developed, in part, by making the operations of power invisible while weaving a network of lies and deceptions through what might be called a politics of disconnect. That is, a politics that focuses on isolated issues that serve to erase the broader relations and historical contexts that give them meaning. These isolated issues become flashpoints in a cultural and political discourse that hide not merely the operations of power, but also the resurgence of authoritarian ideologies, modes of governance, policies and social formations that put any viable notion of democracy at risk.2 Decontextualized ideas and issues, coupled with the overflow of information produced by the new electronic media, make it more difficult to create narratives that offer historical understanding, relational connections and developmental sequences. The fragmentation of ideas and the cascade of information reinforce new modes of depoliticization and authoritarianism. 3

At the same time, more important issues are buried in the fog of what might be called isolated and manufactured crises, that when given legitimacy, actually benefit the wealthy and hurt working- and middle-class individuals and families. Gerald Epstein rightly argues that the debate about the fiscal cliff is

a debacle on the part of the Obama administration and for progressives and for workers and for families. It’s a real disaster…. We shouldn’t be having to sit here talking about this; we should be talking about what are going to do about the employment cliff or the climate change cliff. But instead we’re talking about this fiscal cliff, which is a manufactured crisis.4

The fiscal cliff argument is manufactured both in that it is not a real crisis (except for its impact on poor and middle-class families), and it serves as a diversion from pressing issues ranging from mass unemployment and widespread poverty, to the housing crisis and the student debt bomb. Moreover, it undermines understanding how these various problems are interrelated ideologically and structurally as part of an assault by religious and market fundamentalists on all aspects of public life that address the common good.

The expanded reach of politics in this discourse of distraction shrinks, and in doing so separates private troubles from public considerations, while undermining any broader understanding of the confluence of socio-economic-cultural interests and interrelated issues and problems that characterize a particular age. For instance, the debate on gun control says little about the deep-rooted culture of symbolic and structural violence that nourishes America’s infatuation with guns and its attraction to the spectacle of violence. Similarly, the mainstream debate over taxing the rich refuses to address this issue through a broader analysis of a society that is structurally wedded to producing massive inequities in income and wealth along with the considerable suffering and hardships produced by such social disparities.

In this denuded notion of politics, the connection between facts and wider theoretical frameworks and the connection between politics and power disappear just as the relationship between private troubles and larger social realities are covered over. Under such circumstances, politics is cleansed of its extremist elements and informed modes of dissent are not only marginalized but also actively suppressed, as was obvious in the FBI surveillance of Occupy Wall Street protesters and the police’s ruthless suppression of student dissenters on campuses across the country.

Blind Publics in an Authoritarian Age

What is missing in the current debates dominating Washington politics is the recognition that the real issues at stake are neither the debt ceiling nor the state of the economy, however important, but a powerful and poisonous form of authoritarianism that poses a threat to the very idea of democracy and the institutions, public values, formative cultures and public spheres that nourish it.5 The United States occupies a critical juncture in its history, one in which the forces of extremism are not just on the rise but are in the midst of revolutionizing modes of governance, ideology and policy. The politics of disconnect is just one of a series of strategies designed to conceal this deeper order of authoritarian politics. In a society that revels in bouts of historical and social amnesia, it is much easier for the language of politics and community to be stolen and deployed like a weapon so as to empty words such as democracy, freedom, justice and the social state of any viable meaning. Arundhati Roy captures the anti-democratic nature of this process in the following insightful comment. She writes:

This theft of language, this technique of usurping words and deploying them like weapons, of using them to mask intent and to mean exactly the opposite of what they have traditionally meant, has been one of the most brilliant strategic victories of the czars of the new dispensation. It has allowed them to marginalize their detractors, deprive them of a language to voice their critique and dismiss them as being “anti-progress,” “anti-development,” “anti-reform,” and of course “anti-national” – negativists of the worst sort. To reclaim these stolen words requires explanations that are too tedious for a world with a short attention span, and too expensive in an era when Free Speech has become unaffordable for the poor. This language heist may prove to be the keystone of our undoing. 6

This undoing of democracy to which Roy refers, and the dystopian society that is being created in its place, can be grasped in the current subordination of public values to commercial values and the collapse of democracy into the logic and values of what might called a predatory casino capitalism where life is cheap and everything is for sale. More specifically, from the ailing rib of democracy there is emerging not simply just an aggressive political assault on democratic modes of governance, but a form of linguistic and cultural authoritarianism that no longer needs to legitimate itself in an idea because it secures its foundational beliefs in a claim to normalcy;7 that is, Americans are now inundated with a pedagogy of cultural authoritarianism whose ideology, values, social practices and social formations cannot be questioned because they represent and legitimate the new neoliberal financial order. This is a mode of predatory casino capitalism that presents itself as a universal social formation without qualification, a social form that inhabits a circle of ideological and political certainty and cultural practice that equates being a citizen with being a consumer – in other words, predatory capitalism is transforming into a universal ethic that has exhausted all political differences, economic alternatives and counter readings of the world in the service of benefitting a financial and corporate elite and a savage form of economic Darwinism.

We get hints of the current mechanisms of diversion and its hidden order of politics in Robert Reich’s claim that the debate over the fiscal cliff should not only be about the broader issue of inequality but also must ask and address crucial political questions regarding the increasing concentration of power and “entrenched wealth at the top, and less for the middle-class and the poor.8 We also see it in Frank Rich’s insistence that the endless debate conducted largely in the mainstream media about Washington being dysfunctional misses the point. Rich argues that beyond media’s silly argument that both parties are to blame for the current deadlock, lies a Republican Party strategy to make the Federal government look as dysfunctional as possible so as to convince the wider American public that the government should be dismantled and its services turned over to for-profit private interests. In fact, a number of recent critics now believe that the extremist nature of the current Republican Party represents one of the most difficult obstacles to any viable form of governance. Thomas E. Mann and Norman J. Ornstein, two prominent conservative commentators, recently have argued that moderates not only have been pushed out of the Republican Party but they are for all intents and purposes “virtually extinct.” They go even further in stating that:

In our past writings, we have criticized both parties when we believed it was warranted. Today, however, we have no choice but to acknowledge that the core of the problem lies with the Republican Party. The GOP has become an insurgent outlier in American politics. It is ideologically extreme; scornful of compromise; unmoved by conventional understanding of facts, evidence and science; and dismissive of the legitimacy of its political opposition. When one party moves this far from the mainstream, it makes it nearly impossible for the political system to deal constructively with the country’s challenges. 9

Robert F. Kennedy Jr. has gone further and has characterized the Republican Party and its “corporate-centric super-PACs as treasonous.” He states that Americans “are now in a free fall toward old-fashioned oligarchy; noxious, thieving and tyrannical” and that given the role of the most corporate-friendly Supreme Court since the Gilded Age with its passage of the Citizens United decision, “those who have the money now have the loudest voices in our democracy while poor Americans are mute.”10

More radical critics like Noam Chomsky, Chris Hedges, Sheldon Wolin, Stanley Aronowitz, Judith Butler, Robert Scheer, Jeffrey St. Clair, Matt Taibbi, Angela Davis and David Theo Goldberg, among others, have long recognized the transformation of the United States from a weak democracy to a spirited authoritarian state. All of these theorists have challenged the permanent war economy, the erosion of civil liberties, the power of the corporate state, the moral bankruptcy of the liberal intelligentsia, the corporate control of the media, the criminal wars of repression abroad, the rise of the torture state and the increasing militarization of everyday life.

However extremist the Republican Party has become with its ongoing war on women, immigrants, young people, the welfare state, voting rights and all manner of civil rights, this should not suggest that the Democratic Party occupies a valued liberal position. On the contrary, policy in the United States is now being shaped by a Democratic Party that has become increasingly more conservative in the last 30 years along with a Republican Party that now represents one of the most extremist political parties to ever seize power in Washington. And while the Republican Party has fallen into the hands of radical extremists, both parties “support shifting the costs of the crisis and the government bailouts of banks, large corporations and the stock market, onto the mass of the citizens.”11 Both parties support bailing out the rich and doing the bidding of corporate lobbyists. Moreover, both parties reject the idea of democracy as a collectively inhabited public space and ethos that unconditionally stands for individual, political and economic rights. President Obama and his Wall Street advisors may hold onto some weak notion of the social contract, but they are far from liberal when it comes to embracing the military physics of the corporate warfare state.

As Chris Hedges, Paul Street, Noam Chomsky and Salvatore Babones have repeatedly pointed out, calling the Republican Party extremists should not cloud the increasingly authoritarian positions now embraced by the Obama administration. For instance, President Obama has deported more immigrants than his predecessor George W. Bush; he has advocated for the privatization of public schools, pursued neoliberal modes of educational governance and slashed funds from a number of vital social service programs. He has put into place a health care program that eliminated the public option and joined forces with insurance companies and Big Pharma.

As is well known, the Obama administration also kept Guantanamo open, justified warrantless wiretapping, accelerated drone attacks that killed many innocent civilians, supports indefinite detention and sanctions a form of “extraordinary rendition,” in which potential terrorists are abducted and shipped off to foreign countries to be tortured.12 In fact, the realm of politics has moved so far to the right in the United States that modes of extremism that were once thought unthinkable have now become commonplace. As Glenn Greenwald has argued, the Patriot Act, state-sponsored torture, assassinations, kill lists and surveillance programs, once “widely lamented as a threat to core American liberties” have “become such a fixture in our political culture that we are trained to take them for granted, to view the warped as normal.”13 While both parties have given up the mantel of democratic politics, the Republican Party is more extreme in its range of targets and its savage attempts to destroy those modes of governance and public spheres that provide the conditions for robust and critical forms of civic life, education, agency and democracy.

Republican Party Extremisms and the Destruction of Democracy

The extremism of the current Republican Party has many political, ideological, economic and cultural registers, but one of its most dangerous and punitive is its attacks on the social state, the public good and the very notion of responsible government. If the Democratic Party has undermined vital civil liberties while promoting a warfare state, the Republican Party has created a new understanding of politics as the space in which corporations and finance capital provide the template for all aspects of governance and policy. Governance in this mode of politics is a mixture of corporate power and financial warfare, accompanied by rule through the apparatuses of punishment, including the courts, military and police. If the slavish obedience to the corporate and finance state is visible in the Republican Party’s call for deregulation, privatization, free trade and a no-tax policy for the wealthy and corporations, the rule of the punishing state becomes clear in the call for the criminalization of a range of social behaviors ranging from abortion and homelessness, to debt payments and student protests.

While the use of military force against workers and civil rights has a long history in the US, the rule of finance capital is both new and takes on a new urgency, given the threat it poses to a substantive democracy. Robert McChesney argues that the rule of capital has transformed the United States from a weak democracy to “Dollarocracy – the rule of money rather than the rule of people – a specifically US form of plutocracy [that] is now so dominant, so pervasive, that it is accepted as simply the landscape people inhabit.”14 Michael Hudson goes further in his analysis and characterizes one element of the new extremism as a form of financial warfare waged against not merely the social state but all those groups that historically have fought for expanding political, economic and personal rights. He writes:

Finance has moved to capture the economy at large, industry and mining, public infrastructure (via privatization) and now even the educational system. (At over $1 trillion, US student loan-debt came to exceed credit-card debt in 2012). The weapon in this financial warfare … is to load economies (governments, companies and families) with debt, siphon off their income as debt service and then foreclose when debtors lack the means to pay. Indebting government gives creditors a lever to pry away land, public infrastructure and other property in the public domain. Indebting companies enable[s] creditors to seize employee pension savings. And indebting labor means that it no longer is necessary to hire strikebreakers to attack union organizers and strikers…. In contrast to the promise of democratic reform nurturing a middle class a century ago, we are witnessing a regression to a world of special privilege in which one must inherit wealth in order to avoid debt and job dependency. 15

The second feature of the new extremism is the ongoing commercialization and destruction of democratic public spaces. The latter refers to the ongoing privatization, commercialization and attack on those democratic public spheres that provide the space for critical thinking, informed dialogue, thoughtfulness, the affirmation of non-commodified norms and the unconditional protection of social rights. Institutions of democratic culture such as schools, the art world, unions, the media, and other public spheres where public values and important social issues are both engaged and offer the conditions for producing informed citizens are now viewed with disdain because they embrace modes of critical reasoning and a collective ethos at odds with anti-democratic and market-driven values.

The Republican Party is not simply wedded to a vicious anti-intellectualism; it scorns the very notion of reason and embraces ignorance as the basis for community. This is evident not only in the rejection of science, evidence and reason as the foundation of an informed community, but also in the embrace of fundamentalist positions that pander to ignorance as a basis for shutting down dissent, mobilizing supporters and retooling American education as a business, a training site to initiate the young into a world where the corporate, financial and military elite decide their needs, desires and future.

The third feature of the new extremism focuses on the attack on the social contract and welfare state and the ideas and institutions that make them possible. The new extremists recognize that the space of citizenship is as important as the idea of citizenship and they want to make sure that it is difficult, if not impossible, for the American public to find and inhabit those public spaces where the discourse of the common good, public life and social justice can be taught and learned – spaces where a language for defending vital public spheres can be developed. The Republican Party discourse on deficits and austerity is in reality an attempt to dismantle the welfare state and the social supports it provides. For Republican Party extremists, budget deficits become the key weapon in forcing the government to reduce its spending on Social Security, Medicare, Medicaid and other social provisions at odds with market-driven values, deregulation and the logic of privatization.

One consequence of this attack on the welfare state and the social contract has been the emergence of a market fundamentalism that trivializes democratic values and public concerns. At the same time, this market fundamentalism enshrines a rabid individualism, legitimates an all-embracing quest for profits, and promotes a Social Darwinism in which misfortune is seen as a weakness and the Hobbesian rule of a “war of all against all” replaces any vestige of shared responsibilities or compassion for others. If the conservative revolution launched by Ronald Reagan and Margaret Thatcher had as its goal the rolling back of social democratic rights, the counter-revolutionaries that now control the Republican Party go much further. That is, they are not interested in rolling back the benefits of the social state, they want to eliminate government-sponsored social provisions, trade union rights, and other social and economic rights. The enemy in this discourse is equality and substantive social rights.

In this form of free-market fundamentalism, the new authoritarianism posits the unregulated and unfettered market as an idol and fetish and promotes the rule of finance capital as part of a larger project leading to the rule of a callous corporate-dominated political economy. It also promotes an anti-public morality in which the only responsibility one has is to oneself, “with no responsibility for the interests or well-being of others.”16 How else to explain the refusal of both political parties to address myriad crises faced by young people as revealed in the following poverty-related statistics: Young adults between the ages of 18 and 24 are the new face of a national homeless population; more than a million public school students are homeless in the US; 57 percent of all children are in homes considered to be either low-income or impoverished, and that half of all American children will be on food stamps at least once before they turn 18 years old.17

At stake here is what John Clarke calls the subordination of the social and public values through a variety of policies that include: 18 “erasing the social” by withdrawing social protections for labor; “privatizing the social” by turning over publicly owned resources to profit-making interests; “subjugating the social” by subordinating social needs and policies to the imperatives of economic competitiveness and capital accumulation; domesticating the social by placing the burden for collective provision, security and care to the narrow realm of the family; narrowing the social by downsizing it into “meaner, degraded or recitalist forms.”19 Under this new market fundamentalism and political extremism, there is little interest in preventing inequality from running out of control – a savage ideology that feeds nicely into the notion that the social protections of the state have nothing to do with the common good or communal survival, but are largely a matter of charity.20 Central to the subordination of the social is the need to create new modes of agency and subjectivity in which “individuals think of themselves in economic terms – as entrepreneurial, calculating selves whose world is structured through contractual or quasi-contractual relationships.”21 This leads to the next element of the new extremism.

The fourth feature of the new extremism is its use of the media and other cultural apparatuses to promote a neoliberal form of public pedagogy and anti-politics engaged in the production of identities, desires and values that disparage any mode of sociality that embraces the common good, public values and shared responsibilities. The new extremism embraces a radical individualism that celebrates a consumer-oriented citizen “whose actions reflect mostly their material self-interests.”22 This is a form of anti-politics, an “authoritarian Utopia that is nothing less than ‘a program of methodical destruction of collectives,’ from trade unions and mill towns to families and small nations.”23 Under attack in this new form of authoritarianism are the social bonds and modes of communal cohesion that enable individuals, families and social movements to resist the ongoing transformation of citizens into customers, the criminalization of economic life, the corruption of politics and the massive increase in poverty, inequality, a culture of cruelty and the emergence of the punishing state.

The new extremism unleashes all the forces of brutal self-absorption that deepen and expand both the structure of cruelty and its ongoing privatization. Material self-interests have weakened any sense of collective purpose, just as America’s obsession with radical individualism and wealth and the growing existence of gross inequality have become symptomatic of our ethical and collective impoverishment.24 As Bauman points out, “the consuming life is [now] lived as a supreme expression of autonomy,” leaving no room for deploying activity in the service of “commitment, devotion, [and] responsibility.”25 Social life in this discourse has little to do with democracy and the formative culture needed to nourish it. As public values are disdained and the very notion of the public good and civic imagination disappear, people do more than surrender their citizenship, they also are rendered excess, disposable – waste products in a society wedded to throwing away not just consumer products, but increasingly human beings as well. What is new about the extremism that now rules American society is not simply the decline of public values but how they have become irrelevant to the existing contemporary neoliberal order, which weakens the foundation of social solidarity and creates identities, values and desires that turn the principles of democracy against themselves while undermining the very possibility of politics as a democratic project.

The Suffocation of Imagination, Agency and Hope

The war on the social contract, the welfare state, democratic politics, equality and the very idea of justice is an attack not simply on everything from Medicare to Social Security to the Equal Pay Act, it is an assault on “the basic architecture of our collective responsibility to ensure that Americans share in a decent life.”26 It is also an aggressive strike against the formative cultures and modes of individual and collective agency that legitimate a connection between the democratic polis and the possibility of economic, social and political freedom. The new extremism and its authoritarian politics draw attention away from serious social problems and the actual structural and ideological conditions that reproduce them. Underlying the shadow of authoritarianism is a corrosive attempt to “create a loss of conviction, a loss of faith in the culture of open democracy, a sense of skepticism and withdrawal.”27 To the degree that the private sphere becomes the only space in which to imagine any sense of hope, pleasure or possibility, citizenship becomes distorted, removed from issues of equity, social justice and civic responsibility. Tony Judt is right in arguing that we have entered a historical conjuncture in which politics is losing its shape, its power of attraction and its ability to confront the anti-democratic pressures at work in American society today.28

Opposing this contemporary, cruel form of authoritarianism demands a new language for embracing the social, for defining civic engagement, for rethinking the meaning of agency and politics and for talking about social responsibility. Rethinking the social means, in part, embracing the role of the state in providing regulations that limit the power of corporations and the financial service industries. It means reconfiguring the very nature of power in order to subordinate capitalism’s major structuring institutions to the rule of law, democratic values and the precepts of justice and equality. The state is not merely an instrument of governance, it is also a site where organized irresponsibility has to give way to organized responsibility, where ethics cannot be privatized and separated from economic considerations, where the rule of law cannot be used to produce legal illegalities and where politics becomes inseparable from the claims of justice, equality and freedom. This suggests the need for social movements to organize and fight for modes of sovereignty at all levels of government in which people, rather than money and corporations, shape the nature of politics, policies and cultural apparatuses that provide the public values that nourish critical modes of citizenship and democracy itself.

The Roles of Critical Education and Collective Struggle in Taking Back Democracy

At stake here is not merely a call for reform but a revolutionary ideal that enables people to hold power, participate in the process of governing and create genuine publics capable of translating private troubles and issues into public problems. This is a revolution that not only calls for structural change but for a transformation in the ways in which subjectivities are created, desires are produced and agency itself becomes crucial to any viable notion of freedom. There is a pedagogical element to a rethinking of the political that has often been ignored by progressives of various political persuasions and that is the necessity to make pedagogy itself central to the very meaning of politics. In this case, it is not enough to demand that people be provided with the right to participate in the experience of governing, but also educated in every aspect of what it means to live in a democracy. At the very least, this suggests an education that enables a working knowledge of citizen-based skills and the development of those capacities that encourage individuals to be self-reflective, develop a passion for public values and be willing to develop and defend those public spaces that lift ideas into the worldly space of the public realm.29

The philosopher Cornelius Castoriadis surely is right in insisting that we must take seriously the political task of creating those diverse public spheres which are capable of rendering all individuals fit to participate in the governing of society, willing to promote the common good and engage the social within a broader political and theoretical landscape, one not tied to the priority of economic interests and an endlessly commodifying market-driven social order. 30Politics demands an informed citizenry, which can only be produced collectively through the existence of public spheres that give meaning to their struggles and fight for justice, economic rights and human dignity. In that sense, any viable struggle against the new authoritarianism in the United States might start with Castoriadis’ insistence that any viable form of politics begins with creating formative cultures and public spheres in which critical education in the broadest sense becomes essential to the very meaning of justice, social responsibility, and democracy.

For Castoriadis, at the heart of such formative cultures are operative forms of public pedagogy that create citizens “who are critical thinkers capable of putting existing institutions into question so that democracy” can be nourished and sustained.31 As a moral and political practice, pedagogy becomes productive of what knowledge, values, and identities are produced in a particular society. Similarly, it becomes a determining factor in creating a society willing to both question itself and struggle for those ideals that give meaning and substance to the promise of a substantive democracy.

Against the dystopian visions that drive the new extremism, there is a need for teachers, workers, artists, students, young people, academics and others to produce a language of critique, provocation and possibility. This is a discourse of civic engagement that embraces politics, in part, as a pedagogical practice organized around what I have in the past labeled as educated hope. Educated hope sharpens the “ethopolitical” instrument and “operates at the root of where the ethical imagination and the political mingle.”32 Educated hope signals the merging of civic education and democratic action as part of a broader attempt to enable young people and others to critically analyze and transform those values, ideologies and market-driven politics that produce a growing machinery and register of widespread inequality and social death. It suggests creating a new language and order of symbolic relations so as to understand the past as well as the dynamics of the present and the future.

Educators, progressives, and civic-minded citizens need a language that puts justice back into the regressive culture of cost-benefit analyses and rejects the civic vacuum created by the extremist apostles of casino capitalism. We also need a language that is vigilant about where democratic identities are not only produced but also where forms of social agency are denied. Those concerned about the fate of justice and democracy also need to reconfigure the political order in order to create relations of power that are capable of controlling the increasing separation of politics, which are nation-based and local, from the exercise of power, which is now global and unrestrained by the politics of the nation-state. Power is now global while politics is local. What this means is that globalization has cut economic and military power free from its traditional political shackles exercised by the nation state and allows it to roam unhindered throughout the globe. The traditional merging of power and politics has been broken and as Bauman points out, “We may say that power has ‘flown’ from the historically developed institutions that used to exercise democratic control over uses and abuses of power in the modern nation-states. Globalization in its current form means a progressive disempowerment of nation-states and (so far) the absence of any effective substitute.”33

Consequently, resistance to the new extremism in the United States must be addressed as part of a broader global struggle, built on strong political and civic commitments and forms of solidarity that are local and internationalist in nature. Beyond critique, any viable challenge must rethink what Jacques Derrida has called the concepts of “the possible and impossible.”34 Thinking beyond the given involves constructing new narratives regarding the stories we tell about ourselves, about the future and the promise of a democracy to come.

A language of critique and educated hope suggests a new and spirited struggle against a culture of civic illiteracy, one in which the commanding institutions of society are divorced from matters of ethics, social responsibility and social cost. The new extremism in American society, which attempts to make critical thinking irrelevant and render hope a paralyzing cynicism, must be challenged by a politics and pedagogy that have the capacity not only to “influence those in power” but also mobilize those who don’t have power.”35 This is a pedagogy that should “not only shift the way people think about the moment, but potentially energizes them to do something different.”36 A politics that merges critique and hope recognizes that while the idea of the good society may be weakened, it is far from an idea that can be relegated to the dustbin of history.

Yet, while the grip of an authoritarian political culture and the politics of distraction are getting stronger in American society, the current attack on democracy should be taken as a new historical opportunity to generate new collective struggles in the hopes of creating a future that refuses to be defined by the dystopian forces now shaping American society. In the aftermath of the massive suffering of produced by World War II and the horrors of the Holocaust, Theodor W. Adorno in the shadow of an older form of authoritarianism refused to give up on hope as an essential condition of agency, politics and justice. He insists that: “Thinking is not the intellectual reproduction of what already exists anyway. As long as it doesn’t break off, thinking has a secure hold on possibility. Its insatiable aspect, its aversion to being quickly and easily satisfied, refuses the foolish wisdom of resignation…. Open thinking points beyond itself.”37 His words are both profound and instructive for the time in which we live because they point to the need to think beyond the given, to think beyond the distorted and market-based inverted hope now on offer from the advocates of casino capitalism.

Thinking beyond itself reinforces the notion that the job and political task of civic education is as the poet Robert Hass has written “to refresh the idea of justice which is going dead in us all the time.”38 Richard Swift builds on this notion adding that as long as there is suffering in the world, individuals and social movements need “to take responsibility for the direction of society.”39

The current talk about deficits, the debt ceiling and the cutting back of social provisions is not without value, but only if it is connected to broader anti-democratic practices and understood as posing a serious threat to a society dominated by religious and economic fundamentalists. The task now facing the American public in this moment of government deceit and civic abandonment is to think beyond the given, to recognize that we cannot act otherwise unless we can think otherwise. At stake here is the need to reconfigure the relationship between hope, community and democracy. If we are to overcome the debilitating pessimism of the current era, it is crucial to combine a reason and a sense of gritty realism with a notion of hope that taps into our deepest experiences, allowing us to take risks and think beyond the parameters of the given. Or as Alain Badiou states: “It is a matter of showing how the space of the possible is larger than the one assigned – that something else is possible, but not that everything is possible.”40 Imagining the unimaginable necessitates asking crucial questions regarding what types of knowledge, agents and moral order are necessary for a democracy to work. What will it take to connect the dots and broaden our horizon of understanding and politics in order to expand the ongoing and always unfinished business of justice, democratization, and freedom?

NOTES:

[1]
C. Wright Mills, “The Powerless People: The Role of the Intellectual in Society” in C. Wright Mills, The Politics of Truth: Selected Writings of C. Wright Mills, (NY: New York, Oxford University Press, 2008), p. 18.

[2]
Ibid. C. Wright Mills, “The Powerless People: The Role of the Intellectual in Society.” p. 18. For some insightful analyses of the new authoritarianism, see Sheldon S. Wolin, Democracy Incorporated: Managed Democracy and the Specter of Inverted Totalitarianism, (Princeton University Press, 2008); Chris Hedges, American Fascists: The Christian Right and the War on America (New York: Free Press, 2008)Andrew J. Bacevich, The New American Militarism (New York: Oxford University Press, 2005); Michael Hardt and Antonio Negri, Multitude: War and Democracy in the Age of Empire, (New York, NY: The Penguin Press, 2004).

[3]
See Zygmunt Bauman, On Education (Cambridge, UK: Polity Press, 2012), p. 35.

[4]
Gerald Epstein, “Rich Should be Happy with Cliff Deal,” The Real News (January 3, 2013).

[5]
C. Wright Mills, “Culture and Politics: The Fourth Epoch”, The Politics of Truth: Selected Writings of C. Wright Mills, (Oxford University Press, 2008), p. 201.

[6]
Arundhati Roy, “What Have We Done to Democracy?,” Huffington Post, (September 27, 2009).

[7]
I have appropriated this idea from Roberto Esposito, Terms of the Political: Community, Imunity, Biopolitics (Fordham: Fordham University Press, 2013), pp. 100-110.

[8]
Robert Reich, “Inequality is Undermining Our Democracy,” Reader Supported News, (December 11, 2012).

[9]
Thomas E. Mann and Norman J. Ornstein, “Let’s just say it: The Republicans are the problem,” The Washington Post, (April 27, 2012).

[10]
Robert F. Kennedy Jr., “A Hostile Takeover of Our Country,” Reader Supported News, (October 29, 2012).

[11]
Richard D. Wolff, “Fiscal Cliff Follies: Political Theater Distracts From Key Problems With the Fix,” Truthout, (January 3, 2013).

[12]
For the most extensive and exhaustive history on the technology of torture, see Darius Rejali, Torture and Democracy (Princeton, NJ: Princeton University Press, 2007). Some of the more instructive books on torture under the George W. Bush administration include: Mark Danner, Torture and Truth: America, Abu Ghraib, and the War on Terror (New York: New York Review of Books, 2004); Jane Mayer, The Dark Side: The Inside Story of How the War on Terror Turned into a War on American Ideals (New York: Doubleday, 2008); and Phillipe Sands, Torture Team (London: Penguin, 2009). On the torture of children, see Michael Haas, George W. Bush, War Criminal? The Bush Administration’s Liability for 269 War Crimes (Westport, CT: Praeger, 2009). See, for instance, Alex Kane, “5 Ways President Obama Has Doubled Down on Bush’s Most Tragic Mistakes,” AlterNet (January 8, 2103). Salvatore Babones, “There Is No American Left,” Truthout, (December 27, 2012). Online:

Sheldon S. Wolin, Democracy Incorporated: Managed Democracy and the Specter of Inverted Totalitarianism, (Princeton University Press, 2008); Andrew J. Bacevich, The New American Militarism (New York: Oxford University Press, 2005); Michael Hardt and Antonio Negri, Multitude: War and Democracy in the Age of Empire, (New York, NY: The Penguin Press, 2004).

[13]
Glenn Greenwald, “Extremism Normalized: How Americans Now Acquiesce to Once Unthinkable Ideas,” Salon (July 31, 2012).

[14]
Robert W. McChesney, “This Isn’t What Democracy Looks like,” Monthly Review 64:6 (2012), p. 2.

[15]
Michael Hudson, “The Financial Elite’s war Against the US Economy,” CommonDreams.Org (December 31, 2012).

[16]
George Lakoff and Glenn W. G Smith, “Romney, Ryan and the Devil’s Budget,” Reader Supported News, (August 22, 2012).

[17]
Editor, “75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe,” The Economic Collapse Blog (December 20, 2012).

[18]
All of these quotes come from John Clarke, “Subordinating the Social?:Neoliberalism and the remaking of welfare capitalism ,” Cultural Studies, Vol. 21, No. 6, (November 2007), pp. 974-987

[19]
John Clarke, “Governing the social?,” Cultural Studies, Vol. 21, No. 6,( November 2007), p. 996.

[20]
Zygmunt Bauman, This is Not a Diary (Cambridge: UK: Polity Press, 2012), p. 86-87.

[21]
Ibid, Clarke, “Subordinating the Social?: Neoliberalism and the remaking of welfare capitalism,” p. 977.

[22]
Manfred B. Steger and Ravi K. Roy, Neoliberalism: A Very Short Introduction, (New York: Oxford University Press, 2010), pp.2-3.

[23] Mike Davis and Daniel Bertrand Monk, “Introduction”, in Mike Davis and Daniel Bertrand Monk, eds. Evil Paradises (NY: The New Press, 2007), p.x.

[24]
Tony Judt, Ill Fares the Land, (New York, N.Y.: The Penguin Press, 2010).

[25]
Zygmunt Bauman, On Education, (Cambridge, UK: Polity Press, 2012), p.129.

[26]
Robert O. Self, “The Antisocial Contract,” New York Times (August 25, 2012).

[27]
Tony Judt, “I am not pessimistic in the very long run,” The Independent, (March 24, 2010)

[28] Ibid.

[29]
Edward Said is particularly helpful on this issue. See, for instance, Representations of the Intellectual (New York: Vintage, 1996) and Humanism and Democratic Criticism (New York: Columbia University Press, 2004).

[30]
Cornelius Castoriadis, “The Problem of Democracy Today,” Democracy and Nature Vol. 8 (April 1996), pp. 18-35.

[31]
Cornelius Castoriadis, “Democracy as Procedure and Democracy as Regime,” Constellations 4:1 (1997), p. 10.

[32]
Gayatri Chakravorty Spivak, “Changing Reflexes: Interview with Gayatri Chaakravorty Spivak,” Works and Days 55/56: Vol. 28 (2010), p. 2.

[33]
Zygmunt Bauman, Does Ethics Have a Chance in a World of Consumers (Cambridge: Harvard University Press, 2008), p. 73.

[34
Jacques Derrida, “The Future of the Profession or the Unconditional University,” in Laurence Simmons and Heather Worth, eds. Derrida Downunder (Auckland, New Zealand: Dunmore Press, 2001), p. 7.

[35]
A Conversation between Lani Guinier and Anna Deavere Smith, ” Rethinking Power, Rethinking Theater,” Theater 31:3 (Winter 2002),P. 3.

[36]
Ibid.

[37]
Theodor W. Adorno, Critical Models: Interventions and Catchwords (New York: Columbia University Press, 2005), pp. 291-292

[38]
Robert Hass cited in Sarah Pollock, ‘Robert Hass,” Mother Jones (March/April, 1992), p. 22

[39]
Richard Swift, The No-Nonsense Guide to Democracy (Toronto: Between the Lines, 2002), p. 138.

[40]
Alain Badiou, Ethics: An Essay on the Understanding of Evil (London: Verso, 1998), p. 116

 

The Hideous Inequality Exposed By Hurricane Sandy In New York

In Uncategorized on November 1, 2012 at 4:23 pm

Oldspeak:”Divides between the rich and the poor are nothing new in New York, but the storm brought them vividly to the surface. There were residents…who could invest all of their time and energy into protecting their families. And there were New Yorkers who could not. Those with a car could flee. Those with wealth could move into a hotel. Those with steady jobs could decline to come into work. But the city’s cooks, doormen, maintenance men, taxi drivers and maids left their loved ones at home.” -David Rohde The vast inequality generated by rigidly hierarchical, competition based, profit driven, casino capitalist system is on full display in times like these. Employment and acquiring money trump safety and security – for the poor. The rich have the option to choose the opposite.  The poor continue to serve while the rich plan which hotels to stay in or what other means to use to avoid danger. Corporate owned-news outlets focus almost exclusively on the devastation visited on exclusive beachfront properties of those with means, largely ignoring poor communities… And America’s caste system continues on, unquestioned. While compassion and consideration are not extended to the most vulnerable members of our society.

Related Story:

Without Power and Aid, Low-Income Residents of NYC’s Lower East Side Struggle in Storm’s Aftermath

By David Rohde @ The Atlantic:

A hotel bellman said he was worried about his mother uptown. A maid said she had been calling her family in Queens. A garage attendant said he hadn’t been able to contact his only relative – a sister in New Jersey – since the storm hit. Asked where he weathered the hurricane, his answer was simple.

“I slept in my car,” he said.

Sandy humbled every one of the 19 million people in the New York City metropolitan area. But it humbled some more than others in an increasingly economically divided city.

Hours before the storm arrived on Monday night, restaurants, corner grocery stores and hotels were open in the Union Square area of Manhattan. (My wife and I moved to a hotel there after being ordered to evacuate our apartment in lower Manhattan.) Instead of heading home to their families as the winds picked up, the city’s army of cashiers, waiters and other service workers remained in place.

Divides between the rich and the poor are nothing new in New York, but the storm brought them vividly to the surface. There were residents like me who could invest all of their time and energy into protecting their families. And there were New Yorkers who could not.

Those with a car could flee. Those with wealth could move into a hotel. Those with steady jobs could decline to come into work. But the city’s cooks, doormen, maintenance men, taxi drivers and maids left their loved ones at home.

New census data shows that the city is the most economically divided it has been in a decade, according to the New York Times. As has occurred across the country, the rich are getting richer and the poor are getting poorer. Twenty-one percent of the city is in poverty, and the median household income decreased by $821 annually. Per the Times:Median income for the lowest fifth was $8,844, down $463 from 2010. For the highest, it was $223,285, up $1,919.”

Manhattan, the city’s wealthiest and most gentrified borough, is an extreme example. Inequality here rivals parts of sub-Saharan Africa. Last year the wealthiest 20 percent of Manhattan residents made $391,022 a year on average, according to census data. The poorest 20 percent made $9,681.

All told, Manhattan’s richest fifth made 40 times more money than its poorest fifth, up from 38 times in 2010. Only a handful of developing countries – such as Namibia and Sierra Leone – have higher inequality rates.

In the Union Square area, New York’s privileged – including myself – could have dinner, order a food delivery and pick up supplies an hour or two before Sandy made landfall. The cooks, cashiers and hotel workers who stayed at work instead of rushing home made that possible.

They were a diverse group. Some were young people in their twenties. Others were middle-aged Americans who had never landed white-collar jobs. Most were immigrants.

On the other end of the wealth spectrum, New York’s age-old excesses emerged. Some families brought their nannies to the hotel to help care for their children through the hurricane. Others panicked when the power went off. All the while, waiters, maids and doormen continued to help them.

The storm affected the affluent as well. Tourists and business people from Boston, California, Britain and Japan were stranded in our hotel. They found themselves without power, water or transportation, and completely at the mercy of strangers.

But the city’s heroes were the tens of thousands of policemen, firefighters, utility workers and paramedics who labored all night for $40,000 to $90,000 a year. And the local politicians who focused on performance, not partisanship, such as New Jersey Governor Chris Christie, New York Mayor Michael Bloomberg and Newark Mayor Corey Booker.

Twenty-four hours after the disaster, ugly political lines were already being drawn. Democrats pounced on a statement by Mitt Romney in a Republican primary debate last year that disaster response should be shifted to the states and, where possible, privatized. Michael Brown, the much criticized director of the Federal Emergency Management Agency under George W. Bush, argued that the Obama administration had responded more quickly to Hurricane Sandy than it did to the terrorist attack in Benghazi.

“One thing he’s gonna be asked is, why did he jump on this so quickly and go back to D.C. so quickly when in … Benghazi, he went to Las Vegas?” Brown was quoted as saying to a Denver alternative newspaper. “This is like the inverse of Benghazi.”

Over the next few days, Obama’s and Romney’s reactions to the storm will be parsed. The role of the federal government in covering the costs of the disaster will be praised and assailed. Politicians, as always, will jockey for advantage.

The storm showed many things about New York. It exposed the city’s vulnerabilities. It also displayed its strengths. And to me, it showed New York’s growing economic divide. I’m sure that many of the people who remained at work yesterday chose to do so voluntarily. But I fear that many of them did not.

World’s Faith in “Free Market” Capitalism, Hard Work, Eroding. As Global Financial Crisis Continues, Pervasive Gloom About World Economy: Survey

In Uncategorized on July 13, 2012 at 3:35 pm

Oldspeak:”The world is getting wise to the hustle that is Free Market, casino capitalism. Money is being pumped into military spending, “Too Big To Fail” Banks and other multinational corporations.  Everyone else gets “Austerity Measures” Billions of  ordinary people work soul crushing jobs for slave wages their whole lives to barely survive.  Something has to change. This monetary system is unsustainable and breeds corruption, greed, and economic violence.”

By Common Dreams:

The financial crisis that has bred unemployment, austerity, and economic pain across the global for nearly fives years is also battering the reputation of the system many believe to be its main cause: “free market” capitalism.

According to a new global poll by Pew Research, only half or fewer — in 11 of 21 nations surveyed — now agree with the statement that people are better off in a “free market” economy than in some other kind.

In nine of the 16 countries for which there is trend data since 2007, before the financial crisis began, support for capitalism is down, with the greatest declines in Italy (down 23 percentage points) and Spain (down 20 points).

Support for capitalism is greatest in Brazil, China, Germany and the U.S, says the report. The biggest skeptics of the free market are in Mexico and Japan.

The survey found only four countries in which a majority of people were happy with and optimistic about the economic situation: China (83 percent), Germany (73 percent), Brazil (65 percent) and Turkey (57 percent). The Chinese are a particular exception to most of the questioning on economic optimism with Pew observing that, overall, the people of China — which runs a single party, state-controlled economy — “have been positive about their economy for the past decade.”

The survey also showed that the prolonged global economic slump has depressed the public mood about their national economies. In only four of 21 countries surveyed does a majority say their economy is doing well.

Anger at government was shared in most countries, but banks and financial institutions were frequently – in Spain (78%), France (74%) and Germany (74%) – seen as the culprit behind the poor performance of national economies. And in two instances – France and Spain – significantly more of the public blamed the banks than blamed the government.

Read the full poll results here.

Top Economists Agree: The U.S. Is In A Depression

In Uncategorized on May 8, 2012 at 2:07 pm

Oldspeak:”You know it’s grim when the prevailing debate among economists and historians is whether the world economy faces the “Great” depression of the 1930s or the “Long” depression of the 1870s.” I like to call it a “Stealth Great Depression” The bread lines have been replaced with EBT cards, and the banks are too bigger to fail, but many of the other conditions that existed in the 1930’s and 1870’s exist today. Tent cities, high unemployment, high poverty, high homelessness, wage stagnation, high debt, mass bankruptcy etc, etc, etc… A profound difference between today’s depression and those of the past is the propaganda. It’s so exquisitely and insidiously crafted that people actually believe it over what it happening all around them in the real world. Meanwhile “Institutions (banks) that know how and why to prevent things from falling apart and which nonetheless sit back and do nothing. A global collapse is being engineered. We need a radically new way forward to avert catastrophe but all we’re being offered by our political classes is tried and false ways of the past that are clearly leading to catastrophe. A ‘sustainable future’ is being monetized. More and more people awakening to the reality that those old ways are no longer acceptable. Our civilization needs a new operating system. Or a crash is not a matter of if, but when. Greed will be our downfall.

By Washington’s Blog:

Paul Krugman released a new book yesterday called “End This Depression Now“. In the introduction, Krugman writes:

The best way to think about this continued slump, I’d argue, is to accept that we’re in a depression …. It’s nonetheless essentially the same kind of situation that John Maynard Keynes described in the 1930s: “a chronic condition of subnormal activity for a considerable period without any marked tendency either towards recovery or towards complete collapse.”

Robert Shiller said yesterday that the world is in a state of “late Great Depression”.

Many other top economists also say that were in a Depression.

We are stuck in a depression because the government has done all of the wrong things, and has failed to address the core problems.

For example:

  • The government is doing everything else wrong. See this and this

This isn’t an issue of left versus right … it’s corruption and bad policies which help the top .1% but are causing a depression for the vast majority of the American people.

Finance Experts: Speculators At Wall Street ‘Casinos’ Continue To Manipulate Prices At The Pump

In Uncategorized on April 5, 2012 at 12:25 pm

Gas Pump PriceOldspeak: “No, high gas prices have NOTHING to do with President Obama. The debate in Washington over cutting oil subsidies is another manufactured issue, diverting attention from the true cause of rising oil and commodities prices; unregulated, unchecked financial speculation and derivatives trading. Coincidentally the cause of the recent crash of the global economic system. Recently passed “financial reform” did nothing to reform this fatally flawed financial system. A simple and totally correctable (stricter regulation) flaw; corporate media, corporate economists,  no one is talking about it. “no one wants to talk about, because so many powerful people armed with legions of lawyers want unquestioning allegiance, and will sue you into silence.”- Danny Schechter. The other Ginormous elephant in the room. We’re running out of oil. Tar sands, offshore drilling
its all an indication that the easy to get to oil is gone. The oil we’re consuming now is infinitely harder to process and produce. Speculators are doing what they do best: profiting handsomely from scarcity. Disaster capitalists are having a field day as the people suffer. This is what oligarchy looks like.

Related Stories:

Finance Expert Says Speculators Are Behind High Oil and Gasoline Prices

Unchecked Financial Speculation Drives Oil Price Hikes; Is There A Scam Behind The Rise In Oil And Food Prices?

By Anna Staver @ The Huffington Post: 

Americans are paying for $4-a-gallon gasoline because Wall Street “casinos” have blocked regulators from cracking down on rampant oil speculation, finance experts argued on Capitol Hill Wednesday.

In an effort to counter Republican claims that gas prices are high because the Obama administration does not allow enough drilling, House Democratic leaders staged a hearing featuring former Reagan and Clinton administration oil and trading analysts who blame the surge on speculation.

And the vast profits from that speculation do not go into developing more oil or creating jobs, the analysts argued.

“Your constituents should know that every time they break their heart by buying $4 and maybe soon $5 gasoline, that money isn’t going into production,” said University of Maryland professor Michael Greenberger, who served as director of the division of trading and markets for the Commodity Futures Trading Commission in the Clinton administration. “It’s going into homebuilding in the Hamptons and yacht building.”

And the big finance firms are working overtime to ensure that the speculative commodity keeps flowing, he said.

“They’ve got hundreds of millions of dollars that they are using in lobbying on the Hill” or the Commodity Futures Trading Commission, Greenberger told HuffPost after the session. “Now they are bringing all these lawsuits; they are stopping the action that has already been asked for by Congress to stop the speculation.”

He was referring to suits that seek to limit certain Dodd-Frank financial reforms that, among other things, grant the commission the power to crack down on excessive oil speculation.

Greenberger told the Democratic Steering and Policy Committee that curtailing the speculation — some of which he said was necessary — would cost nothing and would not stop any markets from functioning.

“What are you stopping here? Are you stopping money from going into production? Are you stopping money from [reaching] people creating jobs?” Greenberger asked. “Unless you think casinos — which come to us with names like Goldman Sachs and Morgan Stanley — are job creators, you’re stopping betting. If we’re wrong about this — if everything we’re telling you is incorrect — what will you have done except close a couple of casinos?”

Rep. Xavier Becerra (D-Calif.) pressed Greenberger if there was contradictory evidence when it comes to figuring out whether high gas prices could be cured through increased drilling and domestic oil production.

Greenberger conceded that one or two experts in the country would hold that opinion but said the vast majority in his field believe that Wall Street sets the price of oil.

“Many would like you to believe that this is a supply-demand problem. It’s not,” Greenberger said. “It is excessive speculation, which is a fancy way of saying that gamblers wearing Wall Street suits have taken over and created investment vehicles designed to drive the price of oil up.”

He cited testimony by Goldman Sachs earlier this year asserting that speculation drives up the cost of a barrel of oil by as much as $23.39.

Gene Guildford, a former president of the Maine Oil Dealers Association and a Reagan administration Commerce Department official, estimated that speculation translates into roughly a dollar added to the price of each gallon of gasoline bought by the U.S. consumer. “Instead of spending four dollars, you should have been spending something closer to three dollars for your gallon of gasoline,” he said.

The extra cost to America’s drivers is staggering, Guildford said. “At 11 billion gallons a month that Americans consume, Americans today are paying $10 billion more a month for gasoline today than they did in December.”

Both men urged the committee to fully fund the Commodity Futures Trading Commission and propose legislation in the House aimed at cutting oil speculation to what is required to keep the markets liquid.

Otherwise, it’s just making millionaires richer and middle-class Americans poorer, they and Democrats argued.

“Wall Street speculators are artificially driving up the price at the pump and causing pain to millions of American consumers,” said House Minority Leader Nancy Pelosi (D-Calif.).

Bipartisan Support As U.S. Congress Rolls Back Toothless, “Financial Reforms” On Complex Financial Instruments, Derivatives

In Uncategorized on April 3, 2012 at 6:34 pm

Oldspeak: “A nation of sheep begets a government of wolves” –Edward R. Murrow.  Exhibit Z of how thoroughly the U.S. government has been captured by casino capitalists/corporatists. Voting by and overwhelming margin to roll back already feeble regulations of the very same OTC derivatives a.k.a. “Financial Weapons Of Mass Destruction”that caused the last global economic crash. Legalized gambling with other peoples money, resources, and livelihoods and having no ability to cover bets is free to continue unfettered once again. I was casually chatting with an investment banker a couple days ago, who was talking about how much more money there was in that field than in education and non-profits and that he hoped to retire by 35, and I remarked “Well you better get it while the gettins good, because it’s all going down again and the crash is gonna be alot worse this time.” he said “Yeah, you know what you’re talkin about, it’s true. It’s going to happen again. How do you know that, do you have a background in finance?” I told him I didn’t I just read and stay informed. The conditions have been created, against all logic, with the help of your corporate-controlled selected representatives to precipitate a bigger and more devastating global economic collapse that will divest many more Americans of their alleged inalienable rights to life liberty and the pursuit of happiness. Hold on tight kids it’s gonna be a bumpy ride. “Profit Is Paramout”

Related Story:

The Mathematical Equation That Caused The Banks To Crash

Related Video:

Credit Default Swaps

By Washington’s Blog:

Out-of-control derivatives were one of the main causes of the economic crisis … and nothing has really been done to solve the problem.

Is Washington finally about to fix the problem?

Of course not … they’re going to make it worse, and roll back even the toothless psuedo-reforms which they pretended to make.

As the Washington Post notes:

To the chagrin of consumer groups, the House gave overwhelming bipartisan approval Monday to two bills easing requirements that President Barack Obama’s overhaul of financial regulations impose on some exotic financial instruments blamed for helping trigger the 2008 financial crisis.

Lawmakers of both parties said they were relaxing rules that would otherwise inhibit the ability of companies to manage the risks of prices and investments, ultimately reducing their profitability and job creation. Consumer groups said legislators were bowing to the interests of their corporate and finance-world contributors and taking steps that might prove harmful to the public.

***

The instruments are called derivatives ….

***

“End users, you know, were not the cause of the financial crisis,” said Rep. Scott Garrett, R-N.J.

Democrats praised the bills as well.

“We should allow American businesses, acting in good faith, to effectively manage risk,” said Rep. Marcia Fudge, D-Ohio.

Truth is even funnier than satire. Congresswoman Fudge, indeed …

 

Obama’s New Chief Of Staff Jack Lew Is Former Citigroup COO; Heaviliy Invested & Made Millions On Bets Housing Market Would Collapse

In Uncategorized on January 10, 2012 at 1:23 pm

Oldspeak: “Another Clinton-era retread and Wall Street acolyte hired by Obama. Oh and he made millions off of millions of Americans being rendered homeless. It’s no wonder there’s been no significant regulation imposed on Wall Street since the last global economic meltdown it contributed to. Pro-deregulation, de-facto Wall Street lobbyists surround the President and are writing ‘financial regulation’ legislation on Capitol Hill. The conditions for yet another meltdown exist right now, as Wall Street and it’s consorts around the world are hitting the casinos that double as our economies HARD. If you think the last meltdown was bad, The next one’s gonna be a DOOSY.” “Profit Is Paramount”

 

By Truthdig:

Jack Lew is a liberal who worked for Speaker Tip O’Neill and studied under beloved progressive Sen. Paul Wellstone, but he was also the chief operating officer of a Citigroup unit and doesn’t fault deregulation for the shoddy economy.

The president says Lew was chosen by his predecessor, William Daley, who offered a surprise resignation after one year on the job.

Shahien Nasiripour of The Huffington Post reported in 2010 that Lew testified to the Senate that he did not believe deregulation caused the financial meltdown:

Lew, a former OMB chief for President Bill Clinton, told the panel that “the problems in the financial industry preceded deregulation,” and after discussing those issues, added that he didn’t “personally know the extent to which deregulation drove it, but I don’t believe that deregulation was the proximate cause.”

Lew, who headed President Clinton’s Office of Management and Budget during the period when Clinton signed off on the major deregulation of Wall Street and the telecommunications industry, made a fortune while at Citi. That same Huffington Post report notes that his 2009 bonus alone amounted to nearly a million dollars.

When he announced his new chief of staff, Obama declared, “Jack’s economic advice has been invaluable and he has my complete trust, both because of his mastery of the numbers, but because of the values behind those numbers.”

William Daley Resigns As White House Chief of Staff

By Democracy Now:

In a major shakeup inside the Obama administration, White House chief of staff William Daley announced his resignation Monday just over a year after taking the position. He will be replaced by Jack Lew, head of the Office of Management and Budget. President Obama praised Jack Lew’s public service.

President Obama: “Jack’s economic advice has been invaluable and he has my complete trust. Both because of his mastery of the numbers, but because of the values behind those numbers, ever since he began his career in public service as a top aide to Speaker Tip O’Neil, Jack has fought an America were hard work and responsibility pay off. A place where everybody gets a fair shot, everybody does their fair share, and everybody plays by the same rules. And that belief is reflected in every decision that Jack makes.”

After serving as budget director in the Clinton administration, Lew became chief operating officer of Citigroup Alternative Investments in 2008. The Progressive Change Campaign Committee criticized Obama for selecting Lew because his unit at Citigroup heavily invested in a hedge fund that bet on the housing market to collapse.

Goldman Sachs, Citibank, JP Morgan Chase, Bank Of America Have Assets of $5 trillion & Carry $235 TRILLION In Risk Exposure, 1/3 Of World Total

In Uncategorized on October 4, 2011 at 5:17 pm


Oldspeak
:”With Megabanks carrying 50 to 1 leverage on a hundreds of trillions dollar sized largely unregulated and non-public OTC derivatives market, the next collapse of the global economic system is not a matter of if, but when. “OTC derivatives are an unregulated dark pool of money with no public market.  These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities.  According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. (Click here for the complete Comptroller of the Currency report.)  As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding!” –Greg Hunter It’s going to be really interesting to see what happens when this gargantuan house of cards falls down. I’ll bet quite a few more people will be for occupying wall street then.”

By Greg Hunter @ USAWatchdog.com :

I keep hammering away at the fact the Fed doled out $16 trillion in the wake of the credit crisis of 2008.  This is an enormous sum that is greater than the all goods and services produced in the U.S. in a single year.  Domestic banks and companies got the money, right along with foreign banks and companies.  In effect, the Federal Reserve bailed out the world financial system.  Now, we are right back to square one facing another financial meltdown with European banks and sovereign debt.  If the Fed spent $16 trillion, why in the heck is this problem not fixed and why isn’t the world economy taking off like a rocket?”  The simple answer is it wasn’t enough money.

The Bank of International Settlements pegs the total world over-the-counter (OTC) derivative exposure at around $600 trillion, but many experts say the real figure is more than twice that amount.  No matter which figure you use, it is a gargantuan sum.  OTC derivatives are an unregulated dark pool of money with no public market.  These are basically debt bets between two entities on things such as credit risk, currencies, interest rates and commodities.  According to the latest report from the Comptroller of the Currency, just four U.S. banks have an eye popping $235 trillion of OTC derivative leverage. (Click here for the complete Comptroller of the Currency report.)  As a nation, U.S. banks have a total OTC derivative exposure of $250 trillion. So, the fact that just four U.S. banks have this much leverage and risk is astounding!  The banks are listed below in order of size and approximate OTC exposure:

1.)     JP MORGAN CHASE BANK NA OH

$78.1 trillion OTC derivatives

2.)    CITIBANK NATIONAL ASSN

$56.1 trillion OTC derivatives

3.)    BANK OF AMERICA NA NC

$53.15 trillion OTC derivatives

4.)    GOLDMAN SACHS BANK USA NY

$47.7 trillion OTC derivatives

Considering that the total assets of these four banks are a little more than $5 trillion, I see a frightening amount of risk with a total derivative exposure of $235 trillion!  This is nearly 50 to 1 leverage.  On top of that, assets such as real estate or mortgage-backed securities can be held on the books at whatever value the banks think they can sell them for in the future.  I call this government sanctioned accounting fraud, or mark to fantasy accounting.  Who knows what the true value of the banks “assets” really are.

I am sure the banks would say that the net exposure is really not near that great because the banks have hedged their bets.  The banks will probably say, by and large, these debt bets will cancel out or back up one another.  It is known in the banking world as “bilateral netting.”  A recent article in Zerohedge.com explained the enormous risk by saying, “The best example of how the flaw behind bilateral netting almost destroyed the system is AIG: the insurance company was hours away from making trillions of derivative contracts worthless if it were to implode, leaving all those who had bought protection from the firm worthless, a contingency only Goldman hedged by buying protection on AIG. And while the argument can further be extended that in bankruptcy a perfectly netted bankrupt entity would make someone else whole on claims they have written, this is not true, as the bankrupt estate will pursue 100 cent recovery on its claims even under Chapter 11, while claims the estate had written end up as General Unsecured Claims which as Lehman has demonstrated will collect 20 cents on the dollar if they are lucky.”(Click here to read the complete Zerohedge.com story.) 

The global economy is still in trouble.  Everyone is focusing on Europe because the sovereign debt crisis there is likely to cause the European Union to break apart and kill the Euro.  The Head of UniCredit global securities, Attila Szalay-Berzeviczy said recently, “The euro is beyond rescue . . . . “The only remaining question is how many days the hopeless rearguard action of European governments and the European Central Bank can keep up Greece’s spirits . . . . A Greek default will trigger an immediate “magnitude 10” earthquake across Europe.” (Click here for more on that story.)  If the EU goes under, do not expect all the highly leveraged U.S. banks to walk away unscathed.  They will need another bailout to stay afloat.

You must remember the U.S. still is at the epicenter of the ongoing credit crisis.  At the moment, America looks like it is in better shape than Europe, but that will not last.  According to the latest report from John Williams of Shadowstats.com“The root source of current global systemic instabilities largely has been the financially-dominant United States, and it is against the U.S. dollar that the global markets ultimately should turn, massively.  The Fed and the U.S. Treasury likely will do whatever has to be done to prevent a euro-area crisis from triggering a systemic collapse in the United States.  Accordingly, it is not from a euro-related crisis, but rather from within the U.S. financial system and financial-authority actions that an eventual U.S. systemic failure likely will be triggered, seen initially in a rapidly accelerating pace of domestic inflation—ultimately hyperinflation.” 

Sure, the dollar may gain in value for a while in absence of the Euro as a competing currency, but, ultimately, the dollar too will crash, right along with a few very big banks.

“Occupy Wall Street” Protest Continues, With Wall Street Declared “Off Limits” By NYPD

In Uncategorized on September 19, 2011 at 11:26 am

People protest during the 'Occupy Wall Street' rally at Bowling Green Plaza on 17 September

Oldspeak:“Freedom of assembly:  the individual right to come together and collectively express, promote, pursue and defend common interests. The right to freedom of association is recognized as a human right, a political freedom and a civil liberty. EXCEPT when the NYPD says not today. You’re rights to dissent, protest and petition your government with grievences are being continually and relentlessly constricted and eroded. An entire section of NYC was literally declared off limits by the Praetorian Guard of Empire, to dissuade  5,000 people from voicing their displeasure with this malfunctioning monetary/capitalist system that allows billions to starve, millions to be thrown out of their their homes, the perpetual fleecing of the poor, spectacular and immoral inequality, and attacks and silences those who dare to demand something different.” “Freedom Is Slavery”.

By Micah White and Kalle Lasn @ The Guardian U.K

On Saturday 17 September, many of us watched in awe as 5,000 Americans descended on to the financial district of lower Manhattan, waved signs, unfurled banners, beat drums, chanted slogans and proceeded to walk towards the “financial Gomorrah” of the nation. They vowed to “Occupy Wall Street” and to “bring justice to the bankers”, but the New York police thwarted their efforts temporarily, locking down the symbolic street with barricades and checkpoints.

Undeterred, protesters walked laps around the area before holding a people’s assembly and setting up a semi-permanent protest encampment in a park on Liberty Street, a stone’s throw from Wall Street and a block from the Federal Reserve Bank of New York.

Three hundred spent the night, several hundred reinforcements arrived the next day and as we write this article, the encampment is rolling out sleeping bags once again. When they tweeted to the world that they were hungry, a nearby pizzeria received $2,800 in orders for delivery in a single hour. Emboldened by an outpouring of international solidarity, these American indignados said they’d be there to greet the bankers when the stock market opened on Monday. It looks like, for now, the police don’t think they can stop them. ABC News reports that “even though the demonstrators don’t have a permit for the protest, [the New York police department says that] they have no plans to remove those protesters who seem determined to stay on the streets.” Organisers on the ground say, “we’re digging in for a long-term occupation“.

#OCCUPYWALLSTREET was inspired by the people’s assemblies of Spain and floated as a concept by a double-page poster in the 97th issue of Adbusters magazine, but it was spearheaded, orchestrated and accomplished by independent activists. It all started when Adbusters asked its network of culture jammers to flood into lower Manhattan, set up tents, kitchens and peaceful barricades and occupy Wall Street for a few months. The idea caught on immediately on social networks and unaffiliated activists seized the meme and built an open-source organising site. A few days later, a general assembly was held in New York City and 150 people showed up. These activists became the core organisers of the occupation. The mystique of Anonymous pushed the meme into the mainstream media. Their videocommunique endorsing the action garnered 100,000 views and a warning from theDepartment of Homeland Security addressed to the nation’s bankers. When, in August, the indignados of Spain sent word that they would be holding a solidarity event in Madrid’s financial district, activists in Milan, Valencia, London, Lisbon, Athens, San Francisco, Madison, Amsterdam, Los Angeles, Israel and beyond vowed to do the same.

There is a shared feeling on the streets around the world that the global economy is a Ponzi scheme run by and for Big Finance. People everywhere are waking up to the realisation that there is something fundamentally wrong with a system in which speculative financial transactions add up, each day, to $1.3tn (50 times more than the sum of all the commercial transactions). Meanwhile, according to a United Nations report, “in the 35 countries for which data exist, nearly 40% of jobseekers have been without work for more than one year”.

“CEOs, the biggest corporations, and the wealthy are taking too much from our country and I think it’s time for us to take back,” said one activist who joined the protests last Saturday. Jason Ahmadi, who travelled in from Oakland, California explained that “a lot of us feel there is a large crisis in our economy and a lot of it is caused by the folks who do business here”. Bill Steyerd, a Vietnam veteran from Queens, said “it’s a worthy cause because people on Wall Street are blood-sucking warmongers”.

There is not just anger. There is also a sense that the standard solutions to the economic crisis proposed by our politicians and mainstream economists – stimulus, cuts, debt, low interest rates, encouraging consumption – are false options that will not work. Deeper changes are needed, such as a “Robin Hood” tax on financial transactions; reinstating the Glass-Steagall Act in the US; implementing a ban onhigh-frequency “flash” trading. The “too big to fail” banks must be broken up, downsized and made to serve the people, the economy and society again. The financial fraudsters responsible for the 2008 meltdown must be brought to justice. Then there is the long-term mother of all solutions: a total rethinking of western consumerism that throws into question how we measure progress.

If the current economic woes in Europe and the US spiral into a prolonged global recession, people’s encampments will become a permanent fixtures at financial districts and outside stock markets around the world. Until our demands are met and the global economic regime is fundamentally reformed, our tent cities will keep popping up.

Bravo to those courageous souls in the encampment on New York’s Liberty Street. Every night that #OCCUPYWALLSTREET continues will escalate the possibility of a full-fledged global uprising against business as usual.