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

Posts Tagged ‘Economic Collapse’

Our Invisible Revolution

In Uncategorized on November 4, 2013 at 6:36 pm

Oldspeak: “As long as most citizens believe in the ideas that justify global capitalism, the private and state institutions that serve our corporate masters are unassailable. When these ideas are shattered, the institutions that buttress the ruling class deflate and collapse. The battle of ideas is percolating below the surface. It is a battle the corporate state is steadily losing. An increasing number of Americans are getting it. They know that we have been stripped of political power. They recognize that we have been shorn of our most basic and cherished civil liberties, and live under the gaze of the most intrusive security and surveillance apparatus in human history. Half the country lives in poverty. Many of the rest of us, if the corporate state is not overthrown, will join them. These truths are no longer hidden… Revolution usually erupts over events that would, in normal circumstances, be considered meaningless or minor acts of injustice by the state. But once the tinder of revolt has piled up, as it has in the United States, an insignificant spark easily ignites popular rebellion. No person or movement can ignite this tinder. No one knows where or when the eruption will take place. No one knows the form it will take. But it is certain now that a popular revolt is coming. The refusal by the corporate state to address even the minimal grievances of the citizenry, along with the abject failure to remedy the mounting state repression, the chronic unemployment and underemployment, the massive debt peonage that is crippling more than half of Americans, and the loss of hope and widespread despair, means that blowback is inevitable… By the time ruling elites are openly defied, there has already been a nearly total loss of faith in the ideas—in our case free market capitalism and globalization—that sustain the structures of the ruling elites. And once enough people get it, a process that can take years, “the slow, quiet, and peaceful social evolution becomes quick, militant, and violent,” as Berkman wrote. “Evolution becomes revolution.”…. The corporate state seeks to maintain the fiction of our personal agency in the political and economic process. As long as we believe we are participants, a lie sustained through massive propaganda campaigns, endless and absurd election cycles and the pageantry of empty political theater, our corporate oligarchs rest easy in their private jets, boardrooms, penthouses and mansions. As the bankruptcy of corporate capitalism and globalization is exposed, the ruling elite are increasingly nervous. They know that if the ideas that justify their power die, they are finished. This is why voices of dissent—as well as spontaneous uprisings such as the Occupy movement—are ruthlessly crushed by the corporate state.” -Chris Hedges

“The prescient words of Elder Gil Scott-Heron rings true today “The Revolution Will Not Be Televised”. Nevertheless its underway worldwide. The elites are scrambling to expand their means to watch, manipulate and control the people. Their efforts will fail, as more and more people get it and awaken from the “world that has been pulled over your eyes to blind you from the truth”. The matrix is only as powerful as its energy source. People are that energy source. Their efforts make the elites possible. As more and more people disconnect their energy from toxic, obsolete, inequitable, and unsustainable systems, the Matrix will collapse. “Extend and Pretend” can only persist for so much longer.” -OSJ

By Chris Hedges @ Truthdig:

“Did you ever ask yourself how it happens that government and capitalism continue to exist in spite of all the evil and trouble they are causing in the world?” the anarchist Alexander Berkman wrote in his essay “The Idea Is the Thing.” “If you did, then your answer must have been that it is because the people support those institutions, and that they support them because they believe in them.”

Berkman was right. As long as most citizens believe in the ideas that justify global capitalism, the private and state institutions that serve our corporate masters are unassailable. When these ideas are shattered, the institutions that buttress the ruling class deflate and collapse. The battle of ideas is percolating below the surface. It is a battle the corporate state is steadily losing. An increasing number of Americans are getting it. They know that we have been stripped of political power. They recognize that we have been shorn of our most basic and cherished civil liberties, and live under the gaze of the most intrusive security and surveillance apparatus in human history. Half the country lives in poverty. Many of the rest of us, if the corporate state is not overthrown, will join them. These truths are no longer hidden.

It appears that political ferment is dormant in the United States. This is incorrect. The ideas that sustain the corporate state are swiftly losing their efficacy across the political spectrum. The ideas that are rising to take their place, however, are inchoate. The right has retreated into Christian fascism and a celebration of the gun culture. The left, knocked off balance by decades of fierce state repression in the name of anti-communism, is struggling to rebuild and define itself. Popular revulsion for the ruling elite, however, is nearly universal. It is a question of which ideas will capture the public’s imagination.

Revolution usually erupts over events that would, in normal circumstances, be considered meaningless or minor acts of injustice by the state. But once the tinder of revolt has piled up, as it has in the United States, an insignificant spark easily ignites popular rebellion. No person or movement can ignite this tinder. No one knows where or when the eruption will take place. No one knows the form it will take. But it is certain now that a popular revolt is coming. The refusal by the corporate state to address even the minimal grievances of the citizenry, along with the abject failure to remedy the mounting state repression, the chronic unemployment and underemployment, the massive debt peonage that is crippling more than half of Americans, and the loss of hope and widespread despair, means that blowback is inevitable.

“Because revolution is evolution at its boiling point you cannot ‘make’ a real revolution any more than you can hasten the boiling of a tea kettle,” Berkman wrote. “It is the fire underneath that makes it boil: how quickly it will come to the boiling point will depend on how strong the fire is.”

Revolutions, when they erupt, appear to the elites and the establishment to be sudden and unexpected. This is because the real work of revolutionary ferment and consciousness is unseen by the mainstream society, noticed only after it has largely been completed. Throughout history, those who have sought radical change have always had to first discredit the ideas used to prop up ruling elites and construct alternative ideas for society, ideas often embodied in a utopian revolutionary myth. The articulation of a viable socialism as an alternative to corporate tyranny—as attempted by the book “Imagine: Living in a Socialist USA” and the website Popular Resistance—is, for me, paramount. Once ideas shift for a large portion of a population, once the vision of a new society grips the popular imagination, the old regime is finished.

An uprising that is devoid of ideas and vision is never a threat to ruling elites. Social upheaval without clear definition and direction, without ideas behind it, descends into nihilism, random violence and chaos. It consumes itself. This, at its core, is why I disagree with some elements of the Black Bloc anarchists. I believe in strategy. And so did many anarchists, including Berkman, Emma Goldman, Pyotr Kropotkin and Mikhail Bakunin.

By the time ruling elites are openly defied, there has already been a nearly total loss of faith in the ideas—in our case free market capitalism and globalization—that sustain the structures of the ruling elites. And once enough people get it, a process that can take years, “the slow, quiet, and peaceful social evolution becomes quick, militant, and violent,” as Berkman wrote. “Evolution becomes revolution.”

This is where we are headed. I do not say this because I am a supporter of revolution. I am not. I prefer the piecemeal and incremental reforms of a functioning democracy. I prefer a system in which our social institutions permit the citizenry to nonviolently dismiss those in authority. I prefer a system in which institutions are independent and not captive to corporate power. But we do not live in such a system. Revolt is the only option left. Ruling elites, once the ideas that justify their existence are dead, resort to force. It is their final clutch at power. If a nonviolent popular movement is able to ideologically disarm the bureaucrats, civil servants and police—to get them, in essence, to defect—nonviolent revolution is possible. But if the state can organize effective and prolonged violence against dissent, it spawns reactive revolutionary violence, or what the state calls terrorism. Violent revolutions usually give rise to revolutionaries as ruthless as their adversaries. “Whoever fights monsters should see to it that in the process he does not become a monster,” Friedrich Nietzsche wrote. “And if you gaze long enough into an abyss, the abyss will gaze back into you.”

Violent revolutions are always tragic. I, and many other activists, seek to keep our uprising nonviolent. We seek to spare the country the savagery of domestic violence by both the state and its opponents. There is no guarantee that we will succeed, especially with the corporate state controlling a vast internal security apparatus and militarized police forces. But we must try.

Corporations, freed from all laws, government regulations and internal constraints, are stealing as much as they can, as fast as they can, on the way down. The managers of corporations no longer care about the effects of their pillage. Many expect the systems they are looting to fall apart. They are blinded by personal greed and hubris. They believe their obscene wealth can buy them security and protection. They should have spent a little less time studying management in business school and a little more time studying human nature and human history. They are digging their own graves.

Our shift to corporate totalitarianism, like the shift to all forms of totalitarianism, is incremental. Totalitarian systems ebb and flow, sometimes taking one step back before taking two steps forward, as they erode democratic liberalism. This process is now complete. The “consent of the governed” is a cruel joke. Barack Obama cannot defy corporate power any more than George W. Bush or Bill Clinton could. Unlike his two immediate predecessors, Bush, who is intellectually and probably emotionally impaired, did not understand the totalitarian process abetted by the presidency. Because Clinton and Obama, and their Democratic Party, understand the destructive roles they played and are playing, they must be seen as far more cynical and far more complicit in the ruination of the country. Democratic politicians speak in the familiar “I-feel-your-pain” language of the liberal class while allowing corporations to strip us of personal wealth and power. They are effective masks for corporate power.

The corporate state seeks to maintain the fiction of our personal agency in the political and economic process. As long as we believe we are participants, a lie sustained through massive propaganda campaigns, endless and absurd election cycles and the pageantry of empty political theater, our corporate oligarchs rest easy in their private jets, boardrooms, penthouses and mansions. As the bankruptcy of corporate capitalism and globalization is exposed, the ruling elite are increasingly nervous. They know that if the ideas that justify their power die, they are finished. This is why voices of dissent—as well as spontaneous uprisings such as the Occupy movement—are ruthlessly crushed by the corporate state.

“… [M]any ideas, once held to be true, have come to be regarded as wrong and evil,” Berkman wrote in his essay. “Thus the ideas of the divine right of kings, of slavery and serfdom. There was a time when the whole world believed those institutions to be right, just, and unchangeable. In the measure that those superstitions and false beliefs were fought by advanced thinkers, they became discredited and lost their hold upon the people, and finally the institutions that incorporated those ideas were abolished. Highbrows will tell you that they had ‘outlived’ their ‘usefulness’ and therefore they ‘died.’ But how did they ‘outlive’ their ‘usefulness’? To whom were they useful, and how did they ‘die’? We know already that they were useful only to the master class, and they were done away with by popular uprisings and revolutions.”

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Environmental Collapse: The Sixth Stage Of Collapse

In Uncategorized on October 26, 2013 at 8:57 pm

http://sillymickelsapocalypticwakeupcall.files.wordpress.com/2013/08/559624_4730113134571_700653948_n.jpgOldspeak: Dmitri Orlov is back with a brilliant addendum to his eerily prescient 2008 “The Five Stages Of Collapse“. Writing about  the all important stage of collapse he’d neglected to mention then.  Indeed, it is the only problem left worth preparing for. At the end of this stage Environmental Collapse, there is no other problem to be concerned with. The jig is up, there’s no home. The irony is we’re systematically eradicating the last remnants of people who know how we need to live to start reversing the damage we’ve done to our Mother. Relentlessly and increasingly exhausting at a non-renewable rate our essential ‘ecosystem services” for contrived reality driven “profit”. “Extend and pretend” can only go on for so much longer.” -OSJ

We don’t want to change who we are in order to live in harmony with nature; we want nature to live in harmony with us while we remain who we are. In the meantime, we are continuing to wage war on the sorry remnants of the tribes that had once lived in balance with nature, offering them “education,” “economic development” and a chance to play a minor role in our ruinous, negative-sum economic games. Given such options, their oft-observed propensity to do nothing and stay drunk seems like a perfectly rational choice. It minimizes the damage. But the damage may already have been done…

It seems like letting global industrial civilization collapse and all the nuclear power plants cook off is not such a good option, because it will seal our fate. But the alternative is to “extend and pretend” and “kick the can down the road” while resorting to a variety of environmentally destructive, increasingly desperate means to keep industry running: hydraulic fracturing, mining tar sands, drilling in the Arctic and so on. And this isn’t such a good option either because it will seal our fate in other ways…

Because, you see, there is also the sixth stage which I have previously neglected to mention—environmental collapse—at the end of which we are left without a home, having rendered Earth (our home planet) uninhabitable.

This tragic outcome may not be unavoidable. And if it is not unavoidable, then that’s about the only problem left that’s worth solving. The solution can be almost arbitrarily expensive in both life and treasure. I would humbly suggest that it’s worth all the money in the world, plus a few billion lives, because if a solution isn’t found, then that treasure and those lives are forfeit anyway.”
Dmitri Orlov
Related Story:
By Dmitri Orlov @ Club Orlov:
I admit it: in my last book, The Five Stages of Collapse, I viewed collapse through rose-colored glasses. But I feel that I should be forgiven for this; it is human nature to try to be optimistic no matter what. Also, as an engineer, I am always looking for solutions to problems. And so I almost subconsciously crafted a scenario where industrial civilization fades away quickly enough to save what’s left of the natural realm, allowing some remnant of humanity to make a fresh start.
Ideally, it would start of with a global financial collapse triggered by a catastrophic loss of confidence in the tools of globalized finance. That would swiftly morph into commercial collapse, caused by global supply chain disruption and cross-contagion. As business activity grinds to a halt and tax revenues dwindle to zero, political collapse wipes most large-scale political entities off the map, allowing small groups of people to revert to various forms of anarchic, autonomous self-governance. Those groups that have sufficient social cohesion, direct access to natural resources, and enough cultural wealth (in the form of face-to-face relationships and oral traditions) would survive while the rest swiftly perish.
Of course, there are problems even with this scenario. Take, for instance, the problem of Global Dimming. The phenomenon is well understood: sunlight reflected back into space by the atmospheric aerosols and particulates generated by burning fossil fuels reduces the average global temperature by well over a degree Celsius. (The cessation of all air traffic over the continental US in the wake of the terrorist attacks of 9/11 has allowed climate scientists to measure this effect.) If industrial activity were to suddenly cease, average global temperatures would be jolted upward toward the two degree Celsius mark which is widely considered to be very, very bad indeed. Secondly, even if all industrial activity were to cease tomorrow, global warming, 95% of which is attributed to human activity in the latest (rather conservative and cautious) IPCC report, would continue apace for the better part of the next millennium, eventually putting the Earth’s climate in a mode unprecedented during all of human existence as a species.
On such a planet, where the equatorial ocean is hotter than a hot tub and alligators thrive in the high Arctic, our survival as a species is far from assured. Still, let’s look at things optimistically. We are an adaptable lot. Yes, the seas will rise and inundate the coastal areas which over half of us currently inhabit. Yes, farmland further inland will become parched and blow away, or be washed away by the periodic torrential rains. Yes, the tropics, followed by the temperate latitudes, become so hot that everyone living there will succumb of heat stroke. But if this process takes a few centuries, then some of the surviving bands and tribes might find a way to migrate further north and learn to survive there by eking out some sort of existence in balance with what remains of the ecosystem.
We can catch glimpses of what such survival might look like by reading history. When Captain James Cook landed on the shore of Western Australia, he was the first white man to encounter aboriginal Australians, who had up to that point persisted in perfect isolation for something like 40.000 years. (They arrived in Australia at about the same time as the Cromagnons displaced the Neanderthals in Europe.) They spoke a myriad different languages and dialects, having no opportunity and no use for any sort of unity. They wore no clothes and used tiny makeshift huts for shelter. They had few tools beyond a digging stick for finding edible roots and a gig for catching fish. They had no hoards or stockpiles, and did not keep even the most basic supplies from one day to the next. They had little regard for material objects of any sort, were not interested in trade, and while they accepted clothes and other items they were given as presents, they threw them away as soon as Cook and his crew were out of sight.
They were, Cook noted in his journal, entirely inoffensive. But a few actions of Cook’s men did enrage them. They were scandalized by the sight of birds being caught and placed in cages, and demanded their immediate release. Imprisoning anyone, animal or person, was to them taboo. They were even more incensed when they saw Cook’s men catch not just one, but several turtles. Turtles are slow-breeding, and it is easy to wipe out their local population by indiscriminate poaching, which is why they only allowed the turtles to be taken one at a time, and only by a specially designated person who bore responsibility for the turtles’ welfare.
Cook thought them primitive, but he was ignorant of their situation. Knowing what we know, they seem quite advanced. Living on a huge but arid and mostly barren island with few native agriculturally useful plants and no domesticable animals, they understood that their survival was strictly by the grace of the surrounding natural realm. To them, the birds and the turtles were more important than they were, because these animals could survive without them, but they could not survive without these animals.
Speaking of being primitive, here is an example of cultural primitivism writ large. At the Age of Limits conference earlier this year, at one point the discussion turned to the question of why the natural realm is worth preserving even at the cost of human life. (For instance, is it OK to go around shooting poachers in national parks even if it means that their families starve to death?) One fellow, who rather self-importantly reclined in a chaise lounge directly in front of the podium, stated his opinion roughly as follows: “It is worth sacrificing every single animal out there in order to save even a single human life!” It took my breath away. This thought is so primitive that my brain spontaneously shut down every time I tried to formulate a response to it. After struggling with it for a bit, here is what I came up with.
Is it worth destroying the whole car for the sake of saving the steering wheel? What use is a steering wheel without a car? Well, I suppose, if you are particularly daft or juvenile, you can use it to pretend that you still have a car, running around with it and making “vroom-vroom!” noises… Let’s look at this question from an economic perspective, which is skewed by the fact that economists tend view the natural realm in terms of its economic value. This is similar to you looking at your own body in terms of its nutritional content, and whether it would make good eating. Even when viewed from this rather bizarre perspective that treats our one and only living planet as a storehouse of commodities to be plundered, it turns out that most of our economic “wealth” is made possible by “ecosystem services” which are provided free of charge.
These include water clean enough to drink, air clean enough to breathe, a temperature-controlled environment that is neither too cold nor too hot for human survival across much of the planet, forests that purify and humidify the air and moderate surface temperatures, ocean currents that moderate climate extremes making it possible to practice agriculture, oceans (formerly) full of fish, predators that keep pest populations from exploding and so on. If we were forced to provide these same services on a commercial basis, we’d be instantly bankrupt, and then, in short order, extinct. The big problem with us living on other planets is not that it’s physically impossible—though it may be—it’s that there is no way we could afford it. If we take natural wealth into account when looking at economic activity, it turns out that we consistently destroy much more wealth than we create: the economy is mostly a negative-sum game. Next, it turns out that we don’t really understand how these “ecosystem services” are maintained, beyond realizing that it’s all very complicated and highly interconnected in surprising and unexpected ways. Thus, the good fellow at the conference who was willing to sacrifice all other species for the sake of his own could never be quite sure that the species he is willing to sacrifice doesn’t include his own.
In addition, it bears remembering that we are, in fact, sacrificing our species, and have been for centuries, for the sake of something we call “progress.” Aforementioned Captain Cook sailed around the Pacific “discovering” islands that the Polynesians had discovered many centuries earlier, his randy, drunken, greedy sailors spreading venereal disease, alcoholism and corruption, and leaving ruin in their wake wherever they went. After the plague of sailors came the plague of missionaries, who made topless Tahitian women wear “Mother Hubbards” and tried to outlaw fornication. The Tahitians, being a sexually advanced culture, had a few dozen different terms for fornication, relating to a variety of sex acts. Thus the missionaries had a problem: banning any one sex act wouldn’t have made much of a dent, while a ban that enumerated them all would read like the Kama Sutra. Instead the missionaries chose to promote their own brand of sex: the “missionary position,” which is best analyzed as two positions—top and bottom. The bottom position can enhance the experience by taking a cold shower, applying blue lipstick and not breathing. I doubt that it caught on much on Tahiti.
The Tahitians seem to have persevered, but many other tribes and cultures simply perished, or continue to exist in greatly diminished numbers, so depressed by their circumstances that they are not interested in doing much beyond drinking beer, smoking cigarettes and watching television. And which group is doing the best? That’s the one that’s been causing the most damage. Thus, the rhetoric about “saving our species from extinction” seems rather misplaced: we have been doing everything we can to drive it to extinction as efficiently as possible for a few centuries now, and we aren’t about to stop because that would be uncivilized.
Because, you see, that’s who we are: we are educated, literate, civilized persons. The readers of this blog especially are economically and environmentally enlightened types, their progressivism resting on the three pillars of pointing out financial Ponzi schemes, averting environmental devastation and eating delicious, organic, locally grown food. We do wish to survive collapse, provided the survival strategy includes such items as gender equality, multiculturalism, LGBT-friendiness and nonviolence. We do not wish to take off all of our clothes and wander the outback with a digging stick looking for edible tubers. We’d rather sit around discussing green technology over a glass of craft-brewed beer (local, of course) perhaps digressing once in a while to consider the obscure yet erudite opinions of one Pederasmus of Ülm on the endless, glorious ebb and flow of human history.
We don’t want to change who we are in order to live in harmony with nature; we want nature to live in harmony with us while we remain who we are. In the meantime, we are continuing to wage war on the sorry remnants of the tribes that had once lived in balance with nature, offering them “education,” “economic development” and a chance to play a minor role in our ruinous, negative-sum economic games. Given such options, their oft-observed propensity to do nothing and stay drunk seems like a perfectly rational choice. It minimizes the damage. But the damage may already have been done. I will present just two examples of it, but if you don’t like them, there are plenty of others.
For the first, you can do your own research. Buy yourself an airline ticket to a tropical paradise of your choice and check into an oceanside resort. Wake up early in the morning and go look at the beach. You will see lots of dark-skinned people with wheelbarrows, buckets, shovels and rakes scraping up the debris that the surf deposited during the night, to make the beach look clean, safe and presentable for the tourists. Now walk along the beach and beyond the cluster of resorts and hotels, where it isn’t being continuously raked clean. You will find that it is so smothered with debris as to make it nearly impassable. There will be some material of natural origin—driftwood and seaweed—but the majority of the debris will be composed of plastic. If you try to sort through it, you will find that a lot of it is composed of polypropylene and nylon mesh and rope and styrofoam floats from the fishing industry. Another large category will consist of single-use containers: suntan lotion and shampoo bottles, detergent bottles, water bottles, fast food containers and so on. Typhoons and hurricanes have an interesting organizing effect on plastic debris, and you will find piles of motor oil jugs next to piles of plastic utensils next to piles of water bottles, as if someone actually bothered to sort them. On a beach near Tulum in México I once found an entire collection of plastic baby sandals, all of different colors, styles and vintages.
Left on the beach, the plastic trash photo-degrades over time, becoming discolored and brittle, and breaking down into smaller and smaller pieces. The final result of this process is a microscopic plastic scum, which can persist in the environment for centuries. It plays havoc with the ecosystem, because a wide variety of animals mistake the plastic particles for food and swallow them. They then clog their digestive tracts, causing them to starve. This devastation will persist for many centuries, but it has started already: the ocean is dying. Over large areas of it, plastic particles outnumber plankton, which forms the basis of the oceanic food chain.
The ravages of the plastics plague also affect land. Scraped together by sanitation crews, plastic debris is usually burned, because recycling it would be far too expensive. Plastic can be incinerated relatively safely and cleanly, but this requires extremely high temperatures, and can only be done at specialized facilities. Power plants can burn plastic as fuel, but plastic trash is a diffuse energy source, takes up a lot of space and the energy and labor costs of transporting it to power plants may render it energy-negative. And so a lot of plastic trash is burned in open pits, at low temperatures, releasing into the atmosphere a wide assortment of toxic chemicals, including ones that affect the hormonal systems of animals. Effects include genital abnormalities, sterility and obesity. Obesity has now reached epidemic proportions in many parts of the world, affecting not just the humans but other species as well. Here, then, is our future: chemical plants continue to churn out synthetic materials, most of these find their way into the environment and slowly break down, releasing their payload of toxins. As this happens, people and animals alike turn into obese, sexless blobs. First they find that they are unable to give birth to fertile male offspring. This is already happening: human sperm counts are dropping throughout the developed world. Next, they will be unable to give birth to normal male babies—ones without genital abnormalities. Next, they will be unable to produce male offspring at all, as has already happened to a number of marine species. Then they go extinct.
Note that no disaster or accident is required in order for this scenario to unfold, just more business as usual. Every time you buy a bottle of shampoo or a bottle of water, or a sandwich that comes wrapped in plastic or sealed in a vinyl box, you help it unfold a little bit further. All it takes is for the petrochemical industry (which provides the feedstocks—oil and natural gas, mostly) and the chemical plants that process them into plastics, to continue functioning normally. We don’t know whether the amount of plastics, and associated toxins, now present in the environment, is already sufficient to bring about our eventual extinction.
But we certainly don’t want to give up on synthetic chemistry and go back to a pre-1950s materials science, because that, you see, would be bad for business. Now, you probably don’t want to go extinct, but if you decided that you will anyway, you would probably want to remain comfortable and civilized down to the very end. And life without modern synthetics would be uncomfortable. We want those plastic-lined diapers, for the young and the old!
This leaves those of us who are survival-minded, on an abstract, impersonal level, wishing for the global financial, commercial and political collapse to occur sooner rather than later. Our best case scenario would go something like this: a massive loss of confidence and panic in the financial markets grips the planet over the course of a single day, pancaking all the debt pyramids and halting credit creation. Commerce stops abruptly because cargos cannot be financed. In a matter of weeks, global supply chains break down. In a matter of months, commercial activity grinds to a halt and tax revenues dwindle to zero, rendering governments everywhere irrelevant. In a matter of years, the remaining few survivors become as Captain Cook saw the aboriginal Australians: almost entirely inoffensive.
One of the first victims of collapse would be the energy companies, which are among some of the most capital-intensive enterprises. Next in line are the chemical companies that manufacture plastics and other synthetic organic chemicals and materials: as their petrochemical feedstocks become unavailable, they are forced to halt production. If we are lucky, the amount of plastic that is in the environment already turns out to be insufficient to drive us all to extinction. Human population can dwindle to as few as a dozen breeding females (the number that survived one of the ice ages, as suggested by the analysis of mitochondrial DNA) but in a dozen or so millennia the climate will probably stabilize, the Earth’s ecology recover, and with it will the human population. We may never again achieve a complex technological civilization, but at least we’ll be able to sing and dance, have children and, if we are lucky, even grow old in peace.
So far so good, but our next example makes the desirability of a swift and thorough collapse questionable. Prime exhibit is the melted-down nuclear power plant in Fukushima, Japan. Contrary to what the Japanese government would want everyone to believe, the situation there is not under any kind of control. Nobody knows what happened to the nuclear fuel from the reactors that melted down. Did they go to China, à la China Syndrome? Then there is the spent nuclear fuel pool, which is full, and leaking. If the water in that pool boils away, the fuel rods burst into flames and melt down and/or explode and then, according to some nuclear experts, it would be time to evacuate the entire northern hemisphere. The site at Fukushima is so radioactive that workers cannot go anywhere near it for any length of time, making it rather fanciful to think that they’ll be able to get the situation there under control, now or ever. But we can be sure that eventually the already badly damaged building housing the spent nuclear fuel will topple, spilling its load and initiating phase two of the disaster. After that there will be no point in anyone going to Fukushima, except to die of radiation sickness.
You might think that Fukushima is an especially bad case, but plants just like Fukushima dot the landscape throughout much of the developed world. Typically, they are built near a source of water, which they use as coolant and to run the steam turbines. Many of the ones built on rivers run the risk of the rivers drying up. Many of the ones built on the ocean are at risk of inundation from rising ocean levels, storm surges and tsunamis. Typically, they have spent fuel pools that are full of hot nuclear waste, because nobody has figured out a way to dispose of it. All of them have to be supplied with energy for many decades, or they all melt just like Fukushima. If enough of them melt and blow up, then it’s curtains for animals such as ourselves, because most of us will die of cancer before reaching sexual maturity, and the ones that do will be unable to produce healthy offspring.
I once flew through the airport in Minsk, where I crossed paths with a large group of “Chernobyl children” who were on their way to Germany for medical treatment. I took a good look at them, and that picture has stayed with me forever. What shocked me was the sheer variety of developmental abnormalities that were on display.
It seems like letting global industrial civilization collapse and all the nuclear power plants cook off is not such a good option, because it will seal our fate. But the alternative is to “extend and pretend” and “kick the can down the road” while resorting to a variety of environmentally destructive, increasingly desperate means to keep industry running: hydraulic fracturing, mining tar sands, drilling in the Arctic and so on. And this isn’t such a good option either because it will seal our fate in other ways.
And so it seems that there may not be a happy end to my story of The Five Stages of Collapse, the first three of which (financial, commercial, political) are inevitable, while the last two (social, cultural) are entirely optional but have, alas, already run their course in many parts of the world. Because, you see, there is also the sixth stage which I have previously neglected to mention—environmental collapse—at the end of which we are left without a home, having rendered Earth (our home planet) uninhabitable.
This tragic outcome may not be unavoidable. And if it is not unavoidable, then that’s about the only problem left that’s worth solving. The solution can be almost arbitrarily expensive in both life and treasure. I would humbly suggest that it’s worth all the money in the world, plus a few billion lives, because if a solution isn’t found, then that treasure and those lives are forfeit anyway.

A solution for avoiding the sixth stage must be found, but I don’t know what that solution would look like. I do find it unsafe to blithely assume that collapse will simply take care of the problem for us. Some people may find this subject matter so depressing that it makes them want to lie down (in a comfortable position, on something warm and soft) and die. But there may be others, who still have some fight left in them, and who do wish to leave a survivable planet to their children and grandchildren. Let’s not expect them to use conventional, orthodox methods, to work and play well with others, or to be polite and reasonable in dealing with the rest of us. Let’s just hope that they have a plan, and that they get on with it.

A Very Very Mad World: Trying To Stay Sane In An Insane World

In Uncategorized on July 31, 2013 at 4:10 pm

Oldspeak: “Facts are treasonous and dangerous in an empire of lies, fraud and propaganda. It is maddening to watch the country spiral downward, driven to ruin by a psychotic predator class, while the plebs choose to remain willfully ignorant of reality and distracted by their lust for cheap Chinese crap and addicted to the cult of techno-narcissism. We are a country running on heaping doses of cognitive dissonance and normalcy bias, an irrational belief in our national exceptionalism, an absurd trust in the same banking class that destroyed the finances of the country, and a delusionary belief that with just another trillion dollars of debt we’ll be back on the exponential growth track. The American empire has been built on a foundation of cheap easily accessible oil, cheap easily accessible credit, the most powerful military machine in human history, and the purposeful transformation of citizens into consumers through the use of relentless media propaganda and a persistent decades long dumbing down of the masses through the government education system… The examples of our national insanity are almost too vast to document, but any critical assessment of what we’ve done over the last one hundred years reveals the idiocracy that has engulfed our collapsing empire.” –Jim Quinn

“One only need witness the near secret trial and conviction of  U.S. Army whistleblower Bradley Manning for espionage after he courageously exposed the criminality, fraud, corruption and malfeasance rampant in the U.S. Army, to see how treasonous and dangerous exposing facts are in an empire of lies, fraud and propaganda. A couple of key facts Mr Quinn left out in the above 99% spot on quote – the American empire was definitely built on all the things he mentioned, but the building material perhaps most crucial to the success of the American empire project: 1 – hundreds of years free African slave labor. And 2 – the virtual extermination of and forcible appropriation of  the bountiful lands of Native Americans.  Kinda a huge deal. 😀  Anywho, keep trying to stay sane in this insane world. Question everything, reject propaganda, resist censorship, disobey civilly, think critically, think freely and seek truth wherever you find it.” –OSJ

By Jim Quinn @ The Burning Platform:

“I mean—hell, I been surprised how sane you guys all are. As near as I can tell you’re not any crazier than the average asshole on the street.”R.P. McMurphy – One Flew Over the Cuckoo’s Nest

“Years ago, it meant something to be crazy. Now everyone’s crazy.”Charles Manson

 

“In America, the criminally insane rule and the rest of us, or the vast majority of the rest of us, either do not care, do not know, or are distracted and properly brainwashed into acquiescence.”Kurt Nimmo

I have to admit to being baffled by the aptitude of the Wall Street and K Street financial elite to keep their Ponzi scheme growing. I consider myself to be a rational, sane human being who understands math and bases his assessments upon facts and a sensible appraisal of the relevant information obtained from trustworthy sources. Of course, finding trustworthy sources is difficult when you live in a corrupt, crony-capitalist, fascist state, controlled by banking, corporate and military interests who retain absolute control over the mainstream media and governmental propaganda agencies. Those seeking truth must pursue it through the alternative media and seeking out unbiased critical thinkers who relentlessly abide by what the facts expose. This is no time for wishful thinking, delusions and fantasies. In the end, the facts are all that matter. As Heinlein noted decades ago, the future is uncertain so facts are essential in navigating a course that doesn’t lead you to ruin upon the shoals of ignorance.

“What are the facts? Again and again and again – what are the facts? Shun wishful thinking, ignore divine revelation, forget what “the stars foretell,” avoid opinion, care not what the neighbors think, never mind the un-guessable “verdict of history” – what are the facts, and to how many decimal places? You pilot always into an unknown future; facts are your single clue. Get the facts!” ― Robert A. Heinlein

Facts are treasonous and dangerous in an empire of lies, fraud and propaganda. It is maddening to watch the country spiral downward, driven to ruin by a psychotic predator class, while the plebs choose to remain willfully ignorant of reality and distracted by their lust for cheap Chinese crap and addicted to the cult of techno-narcissism. We are a country running on heaping doses of cognitive dissonance and normalcy bias, an irrational belief in our national exceptionalism, an absurd trust in the same banking class that destroyed the finances of the country, and a delusionary belief that with just another trillion dollars of debt we’ll be back on the exponential growth track. The American empire has been built on a foundation of cheap easily accessible oil, cheap easily accessible credit, the most powerful military machine in human history, and the purposeful transformation of citizens into consumers through the use of relentless media propaganda and a persistent decades long dumbing down of the masses through the government education system.

This national insanity is not a new phenomenon. Friedrich Nietzsche observed the same spectacle in the 19th century.

“In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule.”

The “solutions” imposed by the supposed brightest financial Ivy League educated minds and corrupt bought off political class upon people of the United States since the Wall Street created 2008 worldwide financial collapse are insane and designed to only further enrich the crony capitalists and their banker brethren. The maniacs are ruling the asylum. John Lennon saw the writing on the wall forty five years ago.

“Our society is run by insane people for insane objectives…. I think we’re being run by maniacs for maniacal ends … and I think I’m liable to be put away as insane for expressing that. That’s what’s insane about it.”John Lennon, Interview BBC-TV (June 22, 1968)

The world is most certainly ruled by a small group of extremely wealthy evil men who desire ever more treasure, supremacy and control, but the vast majority of Americans have stood idly by mesmerized by their iGadgets and believing buying shit they don’t need with money they don’t have is the path to happiness and prosperity, while their wealth, liberty and self-respect were stolen by the financial elite. Our idiot culture, that celebrates reality TV morons, low IQ millionaires playing children’s sports, egomaniacal Hollywood hacks, self-promoting Wall Street financers, and self-serving corrupt ideologue politicians, has been degenerating for decades.

“We are in the process of creating what deserves to be called the idiot culture. Not an idiot sub-culture, which every society has bubbling beneath the surface and which can provide harmless fun; but the culture itself. For the first time, the weird and the stupid and the coarse are becoming our cultural norm, even our cultural ideal.” Carl Bernstein -1992

The examples of our national insanity are almost too vast to document, but any critical assessment of what we’ve done over the last one hundred years reveals the idiocracy that has engulfed our collapsing empire.

The Madness of Crowds

In reading The History of Nations, we find that, like individuals, they have their whims and their peculiarities, their seasons of excitement and recklessness, when they care not what they do. We find that whole communities suddenly fix their minds upon one object and go mad in its pursuit; that millions of people become simultaneously impressed with one delusion, and run after it, till their attention is caught by some new folly more captivating than the first.”Charles MacKay – Extraordinary Popular Delusions and the Madness of Crowds

We have become a nation that seamlessly goes mad every five years in pursuit of some new delusionary fantasy sold to us by the ruling class, only to see those dreams shattered like a wooden ship on the reef of reality. You can never underestimate the power of human stupidity. Ben Bernanke and his Federal Reserve cronies have printed $2.6 trillion of new money out of thin air since September 2008 in order to prop up their Wall Street owners, who had engineered the largest control fraud (mortgage debt/housing bubble) in world history, recklessly gambled in their ravenous appetite for sordid profits, and drove their firms into insolvency. It took the Federal Reserve 95 years to accumulate a balance sheet of $900 billion of safe U.S. Treasuries.

fed balance sheet

They have insanely quadrupled their balance sheet in the last 5 years by accumulating toxic mortgage debt from Wall Street banks and purchasing the majority of new Treasury debt being issued to fund the Federal government’s insane trillion dollar annual deficits. Bernanke, the corporate media, government apparatchiks, and captured political class act as if this is normal, when it is clearly the act of a desperate ruling class in its final death throes. Bernanke has leveraged his balance sheet 60 to 1. Lehman and Bear Stearns were leveraged 30 to 1 when they collapsed. The 100 basis point move in rates over the space of two months has resulted in Bernanke losing $200 billion and effectively wiping out his $55 billion of capital.

fed 10 year

Of course, in a corrupt regime accounting fraud is encouraged and applauded by the status quo. Just as the spineless accountants on the FASB buckled to threats from Bernanke and Paulson in early 2009 and reversed the requirement that assets be marked to market so the felonious Wall Street banks could fraudulently hide their insolvency, the Federal Reserve has decided their losses don’t matter. The Federal Reserve classifies their losses as an asset. Don’t you wish you could classify your 401k losses and your home value losses as an asset? The tapering bullshit storyline is just another attempt to distract the masses from focusing on the fact that Bernanke will never stop expanding his balance sheet because if he stops the financial system will collapse in a catastrophic implosion. The Ponzi scheme will continue until loss of faith leads to a scramble away from the U.S. dollar.

fed balance sheet

Since the infamous creation of the Federal Reserve by a secretive cabal of bankers and politicians in 1913, the ultimate destination of the American empire was set. Every fiat currency in world history has collapsed. Our entire system has been based on infinite exponential growth. The fallacy of American exceptionalism has been built on an underpinning of pure stupid luck and the issuance of more and more debt. The American empire grew to epic proportions due to the discovery of cheap easily accessible oil in the late 19th century and the physical and economic destruction of Europe, Russia and Japan during World War II. The accumulation of debt was fairly moderate during the glory years after World War II, but began to accelerate after the fateful year of 1971 when U.S. oil production peaked and Tricky Dick Nixon removed the last vestiges of restraint from central bankers and politicians by closing the gold window. With the shackles removed from the wrists of corruptible knaves and shysters, America’s future depended upon the wisdom, honesty and financial acumen of Washington politicians and Wall Street financers. Once the citizens realized they could vote for more bread and circuses, our ultimate demise was set in motion. A nation that had produced real annual growth of 4% during the 1950’s and 1960’s has seen a steady decline for the last four decades.

The term pushing on a string describes the Quantitative Easing (literally money printing) and Keynesian debt financed pork spending efforts of our increasingly frantic owners. The insanity of what we’ve done since 1971 is almost too crazy to comprehend. In the first 182 years of our existence the leaders we elected to steward the nation accumulated $400 billion of national debt. By 1981, unleashed from any semblance of spending control, the politicians and bankers had added another $600 billion of debt, a 150% increase in 10 years. By 1991 our beloved leaders had added another $2.6 trillion of debt, another 160% increase in 10 years. By 2001 another $2.2 trillion had been accumulated, only a 60% increase due to the end of the Cold War and a one-time tax surge from the Dot.com stock bubble. Bush’s worldwide War on Terror, expansion of the police state, tax rebate stimulus idiocy, and expansion of the welfare state (Medicare Part D) drove the national debt up by another $2.2 trillion in just eight years, a 40% increase.

The insane amassing of debt since 2008 has put a final nail in the coffin of the ridiculous Keynesian theory, as the Federal government has increased annual spending by 35% over the last five years and the economy is still moribund. Our fearless leaders have driven the national debt from $7.8 trillion to $16.7 trillion in less than five years, a 110% increase. The country continues to add $2 to $3 billion of debt per day. Consider how insane it is that we now accumulate more debt in half a year than we did cumulatively over the first 182 years of our existence as a country. And our elected, or should I say selected, leaders, cheer on the intellectually bankrupt academics like Bernanke whose only solution to every crisis is to print moar and then lie to the American people about his true purpose, act as if annually spending $1 trillion more than we collect while knowing there are over $200 trillion of unfunded promises to fulfill is a reasonable and realistic way to manage the national finances. Any sane person knows our current path will lead to ruin. When you need to issue new debt in order to honor old debt, the end is in sight.

The multitude of insane responses to a financial crisis created by a few greedy psychopathic bankers will be looked upon by historians with contempt and scorn. Future generations will wonder “What were they thinking?” Trillions in wealth were vaporized due to the actions of a small secretive league of highly educated, egocentric psychopaths whose warped sense of morality led them to pillage the wealth of the nation through fraudulent financial products, bribing regulatory agencies, stabbing clients and competitors in the back, and peddling lies, propaganda and misinformation to the public through their captured media mouthpieces. Not only haven’t any predator bankers been thrown in jail, but these villains have grown their parasitic entities to enormous proportions while paying themselves obscene billion dollar bonuses. Jon Corzine stole $1.2 billion directly from the accounts of his customers to cover his gambling losses and he remains free to laze about in one of his five gated mansions. The largest banks on earth have been caught red handed forging mortgage documents, rigging LIBOR, front running the muppets with non-public economic information, insider dealing, and using their HFT supercomputers to manipulate the markets at their whim. Government spy agencies regularly use the U.S. Constitution like toilet paper while accumulating electronic dossiers on every citizen in the country. The rule of law does not exist for the ruling class.

Only in a world gone insane would we be celebrating Wall Street generating all-time high profits through the use of accounting fraud and Bernanke filling their coffers with trillions of interest free money while bilking senior citizens out of $400 billion per year of interest income through his dastardly ZIRP “save a Wall Street banker” scheme. Bernanke has stolen close to $2 trillion from the bank accounts of little old ladies since 2008 and given it to Jamie Dimon, Lloyd Blankfien and the rest of the Wall Street scumbags. While Wall Street and the crony capitalist mega-corporations report record profits, Main Street is left with 5 million less full-time jobs than they had in 2007 and a real unemployment rate exceeding 20%. While the government has insanely reported a recovering economy since mid-2009, the food stamp rolls have grown from 33 million to 47 million. The ruling class cheers the record highs in the stock market that overwhelmingly benefit the top .1% because they are the .1%. Meanwhile, the average schmuck out in the hinterlands is paying double the price they were paying for gas in 2009 and their everyday living costs are rising by greater than 5% annually. Luckily for the financial elite, the average American would rather watch Honey Boo Boo than try to understand the evilness of Federal Reserve created inflation. The economic recovery storyline is obliterated by the fact that real household income is still 9% below its 2008 peak and amazingly 8% below its 2000 level.

Since the 2009 low, the household net worth of the wealthiest 7% has grown by 28%, while the other 93% have seen their net worth decline by a further 4%. The profits accrue to those who run the show, buy the politicians, write the laws, command the media propaganda machine and control the currency. As a sane person in this insane world I’m flabbergasted that there is virtually no outrage at the perpetrators of these crimes against humanity. Americans have earned the moniker – ignorant masses. Bread and circuses have won the day in our declining empire. The oligarchs thank you.

The blame doesn’t rest solely on the shoulders of the evil men running the show. They have only done what we allowed them to do. From top to bottom our society has hopped on the crazy train. The lack of national morality, sense of civic duty, inter-generational responsibility, and willful ignorance regarding sensible financial policies has led us to a tipping point. Decades of feckless self-serving political leadership making entitlement promises they could never honor to win votes, combined with a parasitic financial class peddling debt to millions of witless, narcissistic, math challenged, materialistic morons, has left the country in debt up to its eyeballs with no escape other than cataclysmic default. Michael Lewis documents the bleeding out of our society in his recent book:

“The people who had the power in the society, and were charged with saving it from itself, had instead bled the society to death. The problem with police officers and firefighters isn’t a public sector problem; it isn’t a problem with government; it’s a problem with the entire society. It’s what happened on Wall Street in the run-up to the subprime crisis. It’s a problem of taking what they can, just because they can, without regard to the larger social consequences. It’s not just a coincidence that the debts of cities and states spun out of control at the same time as the debts of individual Americans. Alone in a dark room with a pile of money, Americans knew exactly what they wanted to do, from the top of the society to the bottom. They’d been conditioned to grab as much as they could, without thinking about the long-term consequences. Afterward, the people on Wall Street would privately bemoan the low morals of the American people who walked away from their subprime loans, and the American people would express outrage at the Wall Street people who paid themselves a fortune to design the bad loans.”Michael Lewis – Boomerang

The insanity of our debt accumulation in relation to our pathetic economic growth is clearly evident to even an Ivy League educated economist or a bubble headed CNBC anchorwoman. Since 1971 nominal GDP has grown by a factor of 14. Over this same time frame total credit market debt (household, corporate, government) has grown by a factor of 32. Real GDP (even using the fraudulent BLS manipulated CPI) has only expanded by a factor of 3.5 since 1971. The exponential growth model is clearly failing, with debt going hyperbolic, while GDP has stagnated.

us-debt-and-gdp

Since 2007 real GDP has gone up $500 billion while total credit market debt has gone up by $6 trillion. Only an insane society would allow itself to be convinced by the perpetrators of the financial crimes that collapsed our economic system that accelerating the level of debt in our system will resolve the dilemma of Too Big to Trust banker insolvency. Transferring the immense losses of greedy sham capitalist gambling addicts from their insolvent balance sheets onto the balance sheets of the taxpayer has allowed the criminals to retain and expand their wealth, while sovereign states shift the pain and suffering onto the backs of the sinking middle class. This is a worldwide phenomenon perpetuated by central bankers at the behest of their crony capitalist co-conspirators. They call it capitalism when the scams, dodges and swindles work and the profits accrue to the schemers. When the gamblers and extreme risk addicts roll craps they use their crony capitalist connections, bought with blood money, to socialize their losses. The game is rigged and your owners don’t care about your hopes and dreams or your children’s future. They care about their own wealth and lifestyles of luxury. When the richest 300 people in the world have a greater net worth than the poorest 3 billion people on earth, a sane person realizes a chaotic end of the existing social order beckons.

“All over the world people borrowed vast sums of money they could never repay. The honest toting up, and taking, of the losses is being delayed. There’s a reason for this. The bad debts are owed, largely, to big banks. The big banks (even bigger than they were at the start of this crisis) and the people who own them enjoy a wildly disproportionate amount of political influence. And so, even now, five years into this mess, we remain at the mercy of the failed financial institutions that sit at the center of our capitalism. Geithner & Bernanke, along with their European counterparts, are doing everything in their power to prevent banks from failing. But the effect of this new financial order is bizarre: capitalism for everyone but the capitalists. Ordinary workers remain fully exposed to the increasingly harsh collisions in the marketplace while the highest paid financial elites ride protected by a passenger airbag.” Michael Lewis – Boomerang

Clearly we’ve entered the final phase of our debt financed orgy of narcissistic materialism and self-absorbed avarice. The unsustainability of our course is a fact. Our society has gone mad en-masse but we are only recovering our sanity one by one. The global financial system is insolvent. A fractional reserve fiat money based system requires continuous growth or it collapses. The global banking system is overleveraged and real global growth is stagnant. Central bankers are not smart men. They have one response to every crisis – print!!! Bernanke and his fellow banker cronies are printing at hyper-speed in order to prop up the terminally ill mega-banks. Bernanke feigns confusion at the fact that his QE to infinity and ZIRP have only benefitted his banker puppet masters and the richest .1%, while further impoverishing senior citizen savers and the working middle class.

The anger at the true Wall Street malefactors manifested itself in the Tea Party movement and Occupy Wall Street movement, but both efforts were quickly hijacked by neo-con right wingers and socialist left wingers for their own ideological purposes. The existing social order continues to hold the reins of power, but their grip is growing precarious. The anger, dismay and resentment in the country simmer beneath the surface. The average person senses that all is not well, but most absurdly continue to believe the lies and propaganda spewed at them on a daily basis by the ruling class and their corporate media pawns. When the next shoe drops and billions of stock market and housing wealth are wiped out again, the national anger will sweep away the corrupt social order in a torrent of blood and retribution. Innocent and guilty alike will suffer the consequences. Michael Lewis is somewhat perplexed by the lack of outrage and violence so far.

“A lot has happened. And yet, given the provocation, it’s amazing how little has happened. No one on Wall Street has been shot, or even jailed – and the existing social order has not been seriously challenged. There’s a reason for this, too. The anger arising from the financial crisis finds no natural channel. In another era – an era before catastrophic experiments with radical socialism and nationalism – we would be watching market capitalism being displaced by something far uglier. But today there is no natural place for anger to flow, and so the anger flows haphazardly, like raindrops down a windowpane. The only political ideology that anger benefits these days is anarchy. From the point of view of those who enjoy political stability, it’s a stroke of luck that anarchists have no natural talent for organizing themselves. But how long will it take them to learn?”  Michael Lewis – Boomerang

Staying sane in a society gone mad is not easy. Millions of people believe themselves to be sane, but they have really just adapted to an insane society, so they appear sane within the warped paradigm of that insane society. The truly sane people appear to be insane in an insane society. It’s enough to drive a man crazy. The immense forces of normalcy bias and social inertia have led millions to refuse to understand the mathematical certainty of the coming collapse. The worldwide banking system is like a great white shark that needs to keep moving or it dies. Exponential growth and continuous credit expansion have been the essential ingredients to expanding the American empire, but the growth has stopped, while the debt keeps growing. Infinite growth on a finite planet is impossible. As natural resources deplete and become more expensive to obtain, while the planet’s population continues to grow, the fractional reserve banking system and the nation states who continue to pile up trillions in debt will suddenly suffer a catastrophic collapse. We are in the end stages of a confidence game. Your government will not give you warning. We need to come to our senses one by one, until there are enough sane people to tip the scales in our favor. I’ve concluded that I live in a dishonest, insane, intolerable world and consider it my duty to spread discontent among those I can reach. I’m a dangerous man in the eyes of our corporate fascist surveillance state. So be it.

“The most dangerous man, to any government, is the man who is able to think things out for himself without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. And even if he is not romantic personally he is apt to spread discontent among those who are.”H.L. Mencken

In Part 2 of this article I will attempt to figure out why mass insanity has gripped the world and ponder what might happen when sanity returns.

Welcome To The “Era Of Persistent Conflict”: Pentagon Bracing For Public Dissent Over Climate & Energy Shocks

In Uncategorized on July 22, 2013 at 8:48 pm

https://i0.wp.com/www.davidicke.com/oi/extras/09/september/18_northcom.jpgOldspeak: “Why have Western security agencies developed such an unprecedented capacity to spy on their own domestic populations? Since the 2008 economic crash, security agencies have increasingly spied on political activists, especially environmental groups, on behalf of corporate interests. This activity is linked to the last decade of US defence planning, which has been increasingly concerned by the risk of civil unrest at home triggered by catastrophic events linked to climate change, energy shocks or economic crisis – or all three.” –Dr. Nafeez Ahmed.

“This is why your rights to dissent are being constricted. This is why your rights to assemble and petition your government for redress are being done away with. This is why the entire planet is being watched. This is why investigative journalists are being assailed, intimidated and subpoenaed. This is why whistleblowers are persecuted, hunted and silenced, zealously. This is why law-abiding citizens are being designated as “domestic terrorists”.  This is why more prisons than schools are being built. This is why the armed forces are training to operate in the homeland. The elites know what’s coming. They know there won’t be enough food, water, energy and living space for everyone. They know there will be vast areas of the planet rendered uninhabitable. This is why The Transnational Corporate Network and Governments are merging via a series of largely secret “treaties” and “trade agreements”. They know the people will not stand for it. They know there will be mass and persistent protest and unrest as the world as we know it crumbles, just as we are seeing in many other nations . They know we will need to be policed, controlled, repressed and imprisoned. War is coming. And you are the enemy.” –OSJ

By Dr. Nafeez Ahmed @ The U.K. Guardian:

Top secret US National Security Agency (NSA) documents disclosed by the Guardian have shocked the world with revelations of a comprehensive US-based surveillance system with direct access to Facebook, Apple, Google, Microsoft and other tech giants. New Zealand court records suggest that data harvested by the NSA’s Prism system has been fed into the Five Eyes intelligence alliance whose members also include the UK, Canada, Australia and New Zealand.

But why have Western security agencies developed such an unprecedented capacity to spy on their own domestic populations? Since the 2008 economic crash, security agencies have increasingly spied on political activists, especially environmental groups, on behalf of corporate interests. This activity is linked to the last decade of US defence planning, which has been increasingly concerned by the risk of civil unrest at home triggered by catastrophic events linked to climate change, energy shocks or economic crisis – or all three.

Just last month, unilateral changes to US military laws formally granted the Pentagon extraordinary powers to intervene in a domestic “emergency” or “civil disturbance”:

“Federal military commanders have the authority, in extraordinary emergency circumstances where prior authorization by the President is impossible and duly constituted local authorities are unable to control the situation, to engage temporarily in activities that are necessary to quell large-scale, unexpected civil disturbances.”

Other documents show that the “extraordinary emergencies” the Pentagon is worried about include a range of environmental and related disasters.

In 2006, the US National Security Strategy warned that:

“Environmental destruction, whether caused by human behavior or cataclysmic mega-disasters such as floods, hurricanes, earthquakes, or tsunamis. Problems of this scope may overwhelm the capacity of local authorities to respond, and may even overtax national militaries, requiring a larger international response.”

Two years later, the Department of Defense’s (DoD) Army Modernisation Strategy described the arrival of a new “era of persistent conflict” due to competition for “depleting natural resources and overseas markets” fuelling “future resource wars over water, food and energy.” The report predicted a resurgence of:

“… anti-government and radical ideologies that potentially threaten government stability.”

In the same year, a report by the US Army’s Strategic Studies Institute warned that a series of domestic crises could provoke large-scale civil unrest. The path to “disruptive domestic shock” could include traditional threats such as deployment of WMDs, alongside “catastrophic natural and human disasters” or “pervasive public health emergencies” coinciding with “unforeseen economic collapse.” Such crises could lead to “loss of functioning political and legal order” leading to “purposeful domestic resistance or insurgency…

“DoD might be forced by circumstances to put its broad resources at the disposal of civil authorities to contain and reverse violent threats to domestic tranquility. Under the most extreme circumstances, this might include use of military force against hostile groups inside the United States. Further, DoD would be, by necessity, an essential enabling hub for the continuity of political authority in a multi-state or nationwide civil conflict or disturbance.”

That year, the Pentagon had begun developing a 20,000 strong troop force who would be on-hand to respond to “domestic catastrophes” and civil unrest – the programme was reportedly based on a 2005 homeland security strategy which emphasised “preparing for multiple, simultaneous mass casualty incidents.”

The following year, a US Army-funded RAND Corp study called for a US force presence specifically to deal with civil unrest.

Such fears were further solidified in a detailed 2010 study by the US Joint Forces Command – designed to inform “joint concept development and experimentation throughout the Department of Defense” – setting out the US military’s definitive vision for future trends and potential global threats. Climate change, the study said, would lead to increased risk of:

“… tsunamis, typhoons, hurricanes, tornadoes, earthquakes and other natural catastrophes… Furthermore, if such a catastrophe occurs within the United States itself – particularly when the nation’s economy is in a fragile state or where US military bases or key civilian infrastructure are broadly affected – the damage to US security could be considerable.”

The study also warned of a possible shortfall in global oil output by 2015:

“A severe energy crunch is inevitable without a massive expansion of production and refining capacity. While it is difficult to predict precisely what economic, political, and strategic effects such a shortfall might produce, it surely would reduce the prospects for growth in both the developing and developed worlds. Such an economic slowdown would exacerbate other unresolved tensions.”

That year the DoD’s Quadrennial Defense Review seconded such concerns, while recognising that “climate change, energy security, and economic stability are inextricably linked.”

Also in 2010, the Pentagon ran war games to explore the implications of “large scale economic breakdown” in the US impacting on food supplies and other essential services, as well as how to maintain “domestic order amid civil unrest.”

Speaking about the group’s conclusions at giant US defence contractor Booz Allen Hamilton’s conference facility in Virginia, Lt Col. Mark Elfendahl – then chief of the Joint and Army Concepts Division – highlighted homeland operations as a way to legitimise the US military budget:

“An increased focus on domestic activities might be a way of justifying whatever Army force structure the country can still afford.”

Two months earlier, Elfendahl explained in a DoD roundtable that future planning was needed:

“Because technology is changing so rapidly, because there’s so much uncertainty in the world, both economically and politically, and because the threats are so adaptive and networked, because they live within the populations in many cases.”

The 2010 exercises were part of the US Army’s annual Unified Quest programme which more recently, based on expert input from across the Pentagon, has explored the prospect that “ecological disasters and a weak economy” (as the “recovery won’t take root until 2020”) will fuel migration to urban areas, ramping up social tensions in the US homeland as well as within and between “resource-starved nations.”

NSA whistleblower Edward Snowden was a computer systems administrator for Booz Allen Hamilton, where he directly handled the NSA’s IT systems, including the Prism surveillance system. According to Booz Allen’s 2011 Annual Report, the corporation has overseen Unified Quest “for more than a decade” to help “military and civilian leaders envision the future.”

The latest war games, the report reveals, focused on “detailed, realistic scenarios with hypothetical ‘roads to crisis'”, including “homeland operations” resulting from “a high-magnitude natural disaster” among other scenarios, in the context of:

“… converging global trends [which] may change the current security landscape and future operating environment… At the end of the two-day event, senior leaders were better prepared to understand new required capabilities and force design requirements to make homeland operations more effective.”

It is therefore not surprising that the increasing privatisation of intelligence has coincided with the proliferation of domestic surveillance operations against political activists, particularly those linked to environmental and social justice protest groups.

Department of Homeland Security documents released in April prove a “systematic effort” by the agency “to surveil and disrupt peaceful demonstrations” linked to Occupy Wall Street, according to the Partnership for Civil Justice Fund (PCJF).

Similarly, FBI documents confirmed “a strategic partnership between the FBI, the Department of Homeland Security and the private sector” designed to produce intelligence on behalf of “the corporate security community.” A PCJF spokesperson remarked that the documents show “federal agencies functioning as a de facto intelligence arm of Wall Street and Corporate America.”

In particular, domestic surveillance has systematically targeted peaceful environment activists including anti-fracking activists across the US, such as the Gas Drilling Awareness Coalition, Rising Tide North America, the People’s Oil & Gas Collaborative, and Greenpeace. Similar trends are at play in the UK, where the case of undercover policeman Mark Kennedy revealed the extent of the state’s involvement in monitoring the environmental direct action movement.

A University of Bath study citing the Kennedy case, and based on confidential sources, found that a whole range of corporations – such as McDonald’s, Nestle and the oil major Shell, “use covert methods to gather intelligence on activist groups, counter criticism of their strategies and practices, and evade accountability.”

Indeed, Kennedy’s case was just the tip of the iceberg – internal police documents obtained by the Guardian in 2009 revealed that environment activists had been routinely categorised as “domestic extremists” targeting “national infrastructure” as part of a wider strategy tracking protest groups and protestors.

Superintendent Steve Pearl, then head of the National Extremism Tactical Coordination Unit (Nectu), confirmed at that time how his unit worked with thousands of companies in the private sector. Nectu, according to Pearl, was set up by the Home Office because it was “getting really pressured by big business – pharmaceuticals in particular, and the banks.” He added that environmental protestors were being brought “more on the radar.” The programme continues today, despite police acknowledgements that environmentalists have not been involved in “violent acts.”

The Pentagon knows that environmental, economic and other crises could provoke widespread public anger toward government and corporations in coming years. The revelations on the NSA’s global surveillance programmes are just the latest indication that as business as usual creates instability at home and abroad, and as disillusionment with the status quo escalates, Western publics are being increasingly viewed as potential enemies that must be policed by the state.

Dr Nafeez Ahmed is executive director of the Institute for Policy Research & Development and author of A User’s Guide to the Crisis of Civilisation: And How to Save It among other books. Follow him on Twitter @nafeezahmed

 

 

Why The American Empire Was Destined To Collapse

In Uncategorized on March 20, 2012 at 6:11 pm

Oldspeak:“We are at our core a nation of hustlers; not recently, not sometimes, but always. Conventional wisdom has it that America was predicated on the republican desire to break free from monarchical tyranny, and that was certainly a factor in the War of Independence; but in practical terms, it came down to a drive for “more” — for individual accumulation of wealth. The dominant thinking on the left, is some variety of a “false consciousness” argument, that the elite have pulled the wool over the eyes of the vast majority of the population, and once the latter realizes that they’ve been had, they’ll rebel, they’ll move the country in a populist or democratic socialist direction. The problem I have with this is the evident fact that most Americans want the American Dream, not a different way of life—a Mercedes-Benz, as Janis Joplin once put it. Endless material wealth based on individual striving is the American ideal, and the desire to change that paradigm is practically nonexistent. Even the poor buy into this, which is why John Steinbeck once remarked that they regard themselves as “temporarily embarrassed millionaires.” Hence I would argue that nations get the governments they deserve; that the wool is the eyes.” –Morris Berman. In a totalitarian, consumption-fueled state, “the range of acceptable opinion inevitably shrinks”-Tony Judt. This shrinkage inevitably hastens the empire’s collapse. There is no discussion of of fairly viable and sustainable alternative systems (resource based, localization,) to the obviously failing monetary, infinite growth based and globalization-driven systems in corporate approved intellectual discourse. No threats to profit generation can be tolerated. Never mind the surely fatal and entirely avoidable consequences for our planet, our people, and all the living things that share our planet with us. We’ll poison the air, we’ll destroy the soil, contaminate the water, the three essential elements to our survival; in the perpetual quest for “more”.  These are the thought processes of our most dominant and influential ‘citizens’ -transnational corporations. And we flesh and blood people have internalized their self-exterminating values. How long will it be before they drive our ‘civilization’ into the ground? Our Id fueled economic model is unsustainable. We won’t be able to ignore our demise much longer.  “Profit Is Paramount”

Related Stories:

The Decline and Fall of the American Empire: Four Scenarios for the End of the American Century by 2025

The U.S. & The Five Stages Of Collapse

By Nomi Prins @ Alter Net:

Several years after the Wall Street-ignited crisis began, the nation’s top bank CEOs (who far out-accumulated their European and other international counterparts) continue to hobnob with the president at campaign dinners where each plate costs more than one out of four US households make in a year. Financial bigwigs lead their affluent lives, unaffected, unremorseful, and unindicted for wreaking havoc on the nation. Why? Because they won. They hustled better. They are living the American Dream.

This is not the American Dream that says if you work hard you can be more comfortable than your parents; but rather, if you connive well, game the rules, and rule the game, your take from others is unlimited. In this paradigm, human empathy, caring, compassion, and connection have been devalued from the get-go. This is the flaw in the entire premise of the American Dream: if we can have it all, it must by definition be at someone else’s expense.

In Why America Failed, noted historian and cultural critic Morris Berman’s brilliant, raw and unflinchingly accurate postmortem of America, he concludes that this hustling model, literally woven into the American DNA, doomed the country from the start, and led us inevitably to this dysfunctional point. It is not just the American Dream that has failed, but America itself, because the dream was a mistake in the first place. We are at our core a nation of hustlers; not recently, not sometimes, but always. Conventional wisdom has it that America was predicated on the republican desire to break free from monarchical tyranny, and that was certainly a factor in the War of Independence; but in practical terms, it came down to a drive for “more” — for individual accumulation of wealth.

So where does that leave us as a country? I caught up with Berman to find out.

Nomi Prins: Why America Failed is the third book in a trilogy you wrote on the decline of the American Empire. How did this trilogy evolve?

Morris Berman: The first book in the series, The Twilight of American Culture (2000), is a structural analysis, or internal comparison, of the contemporary US and the late Roman Empire. In it, I identified factors that were central to the fall of Rome and showed that they were present in the US today. I said that if we didn’t address these, we were doomed. I didn’t believe for a moment we would, of course, and now the results are obvious.

After 9/11, I realized that my comparison with Rome lacked one crucial component: like Rome, we were attacked from the outside. Dark Ages America (2006), the sequel to Twilight, is an analysis of US foreign policy and its relationship to domestic policy, once again arguing that there had to be a serious reevaluation of both if we were to arrest the disintegration of the nation. Of course, no such reevaluation took place, and we are now in huge economic trouble with no hope of recovery, and stuck in two wars in the Middle East that we cannot seem to win.

By the time I sat down to write the third volume, Why America Failed, I was past the point of issuing warnings. The book is basically a postmortem for a dying nation. The argument is that we failed for reasons that go back more than 400 years. As a result, the historical momentum to not undertake a reassessment, and just continue on with business as usual, is very powerful. At this point we can no more reverse our downward trajectory than we can turn around an aircraft carrier in a bathtub.

NP: So you’ve been analyzing America’s decline for over a decade. Was there a particular, specific inspiration for Why America Failed?

MB: I was originally inspired by the historian Walter McDougall (Freedom Just Around the Corner) and his argument about America being a nation of hustlers. The original working title was Capitalism and Its Discontents, the point being that those who dissented from the dominant ideology never had a chance. The crux of the problem remains the American Dream: even “progressives” see it as the solution — including, I have the impression, the Wall Street protesters — when it’s actually the problem.

In my essay collection, A Question of Values, I talk about how we are driven by a number of unconscious assumptions, including the notions of our being the “chosen people” and the availability of an endless frontier (once geographical, now economic and technological). For a while I had The Roots of American Failure as the title, but more to the point would be The Failure of American Roots — for even our success was a failure, because it was purely material. This is really what the American Dream is about, in its essence, as Douglas Dowd argued years ago in The Twisted Dream.

There is a story, probably apocryphal, of a Native American scouting expedition that came across the starving members of the Donner Party in 1847, who were snowbound in the Sierra Nevadas and resorted to cannibalism in order to survive. The expedition, which had never seen white people before, observed the Donner Party from a distance, then returned to base camp to report what they had seen. The report consisted of four words: “They eat each other.” Frankly, if I could summarize the argument of Why America Failed in a single phrase, this would be it. Unless Occupy Wall Street (or some other sociopolitical movement) manages to turn things around in a fundamental way, “They ate each other” will be our epitaph.

I should add that Why America Failed is actually part of a lineage, following the path initially staked out by Richard Hofstadter, C. Vann Woodward and Louis Hartz. Between 1948 and 1955 they all argued something similar; I just updated the argument.

NP: What do you say to people who don’t believe America has failed; who may just see the country as going through a bad patch, so to speak? What evidence have you compiled for the argument that the United States has failed?

MB: The major evidence is, of course, economic, and there is by now a slew of books showing that this time around recovery is not really possible and that we are going to be eclipsed by China or even Europe. These are books by very respected economists, I might add; and even a US Intelligence report of two yrs ago, “Global Trends 2025,” says pretty much the same thing, although it adds cultural and political decline into the mix. The statistics here are massive, but just consider a single one: in terms of collective wealth, the top 1 percent of the nation owns more than the bottom 90 percent. If we have a future, it’s that of a banana republic. And there will be no New Deal this time around to save us; just the opposite, in fact, as we are busy shredding any social safety net we once had.

NP: How does this relate to the rise of the Tea Party, or the Occupy Wall Street movement?

MB: Americans may be very vocal in claiming we’ll eventually recover, or that the US is still number-one, but I believe that on some level they know that this is whistling in the dark. They suspect their lives will get worse as time goes on, and that the lives of their children will be even worse than that. They feel the American Dream betrayed them, and this has left them bitter and resentful. The Wall Street protests are, as during the Depression, a demand for restoring the American Dream; for letting more people into it. The Tea Party seeks a solution in returning to original American principles of hustling, i.e. of a laissez-faire economy and society, in which the government plays an extremely small role. Thus they see Obama as a socialist, which is absurd; even FDR doesn’t fit that description. There are great differences between the two movements, of course, but both are grounded in a deep malaise, a fear that someone or something has absconded with America.

NP: Most political analysts place the blame for our current situation on major institutions, whether it is Wall Street, Congress, the Bush or Obama administrations, and so on. You agree with them to a great extent, but you also seem to place a lot of emphasis on the American people themselves—on individual values and behavior. Why is that? How do you see that as a factor?

MB: The dominant thinking on the left, I suppose, is some variety of a “false consciousness” argument, that the elite have pulled the wool over the eyes of the vast majority of the population, and once the latter realizes that they’ve been had, they’ll rebel, they’ll move the country in a populist or democratic socialist direction. The problem I have with this is the evident fact that most Americans want the American Dream, not a different way of life—a Mercedes-Benz, as Janis Joplin once put it. Endless material wealth based on individual striving is the American ideal, and the desire to change that paradigm is practically nonexistent. Even the poor buy into this, which is why John Steinbeck once remarked that they regard themselves as “temporarily embarrassed millionaires.” Hence I would argue that nations get the governments they deserve; that the wool is the eyes.

In addition, all of the data over the last 20 years show that Americans are not very bright, and not even the bright ones are very bright—it’s not merely a question of IQ. A Marist poll released on July 4, 2011 showed that 42 percent of American adults are unaware that the U.S. declared its independence in 1776, and this figure increases to 69 percent for the under-30 age group. Twenty-five percent of Americans don’t know from which country the United States seceded. A poll taken in the Oklahoma public school system turned up the fact that 77 percent of the students didn’t know who George Washington was, and the Texas Board of Education recently voted to include a unit on Estee Lauder in the history curriculum, when they don’t have one on the first president. Nearly 30 percent of the American population thinks the sun revolves around the earth or is unsure of which revolves around which. Etc. etc. How can such a population grasp a structural analysis of American history or politics? They simply aren’t capable of it.

NP: So, basically it’s only a matter of time before students are taking courses in the historical significance of Kim Kardashian? What are the deeper, structural obstacles, in your opinion, to the American public accepting your general argument?

MB: It seems to me that it would involve a complete reversal of consciousness. I remember after the publication of the German edition of Dark Ages America, a major Berlin newspaper, the TAZ, or Tageszeitung, ran a review of the book called “Hopes of a Patriot.” One of the things the reviewer said was that America might be able to save itself if it decided to pay attention to its more serious critics. What would it take for most Americans to regard someone like myself as a patriot, and someone like Dick Cheney as a traitor? Or Ronald Reagan as a simpleton who did the country enormous damage, and Jimmy Carter as a visionary who was trying to rescue it? As I said, this is not a matter of intelligence as IQ, because in America even the bright are brainwashed—just check out the New York Times. It’s more of an “ontological” problem, if you will.

Let me give you a concrete example. A friend of mine who is a dean at one of the nation’s major medical schools was very taken by my discussion of Joyce Appleby’s work, in my book Dark Ages America. He went out and bought her essay, “Capitalism and a New Social Order,” in which she describes how the definition of “virtue” underwent a complete reversal in the 1790s—from putting your private interests aside for the sake of the greater good, to achieving individual material success in an opportunistic environment.

As a dean, my friend interacts with faculty a lot, at department meetings, cocktail parties, or whatever. He took these opportunities to raise the topic of the rapid redefinition of virtue in colonial America, only to discover that within 30 seconds, the eyes of whomever he was talking to glazed over and they would change the subject. Tocqueville said it in 1831, and it is even more true today: Americans simply cannot tolerate, cannot even hear, fundamental critiques of America. IQ has very little to do with it. In an ontological sense, they simply cannot bear it. And if this is true for the “best and the brightest,” then what does this say for the rest of us?

NP: What do you think can be done to reverse the situation? Is there any hope for the American Dream?

MB: At this point, absolutely nothing can reverse the situation. If every American carries these values, then change would require a different people, a different country. In dialectical fashion, it is precisely those factors that made this nation materially great that are now working against us, and that thus need to be jettisoned. What we need now is a large-scale rejection of the American Dream, and an embracing of the alternative tradition I talk about in Why American Failed. These are the “hopes of a patriot,” and they are simply not going to be realized.

NP: Can you mention briefly what some of those alternative traditions are ? You have a chapter that’s attracted some controversy regarding the Civil War – how does that relate?

MB: As I mentioned earlier, the working title of the book was Capitalism and Its Discontents. The reason I liked it (for various reasons, my publisher didn’t) is that it does reflect the thesis of the book: that although there was always an alternative tradition to hustling, with one exception America never took it, and instead it marginalized those alternative voices. The exception was the antebellum South, which raises real questions as to the origins of the Civil War, which were not about slavery as a moral issue, no matter how much we like to believe that. As Robin Blackburn writes in his recent book, The American Crucible, antislavery ideas were far more about notions of progress than about ones of racial equality. That’s a whole other discussion, however, and I have it out in the book for an entire chapter.

But the main narrative here is that from Captain John Smith and the Puritan divines through Thoreau and Emerson to Lewis Mumford and Vance Packard and John Kenneth Galbraith to Jimmy Carter, this tradition of capitalism’s discontents never really stood a chance. It never amounted to anything more than spiritual exhortation. Reaganomics, also known as “greedism,” was not born in 1981; more like 1584. The result is that for more than four centuries now, America has had one value system, and it is finally showing itself to be extremely lopsided and self-destructive. Our political and cultural system never let fresh air in; it squelched the alternatives as quaint or feeble-minded. Appearances to the contrary, this is what “democracy” always meant in America—the freedom to become rich. The alternative tradition, in the work of the figures mentioned above, sought to question the definition of “wealth.” If the dominant culture was following the template of “they eat each other,” the alternative tradition can be encapsulated in that famous line from John Ruskin: “There is no wealth but life.”

NP: Speaking of wars, having just undergone Iraq and Afghanistan, the Obama administration, and actually the Republican candidates as well, have begun to vilify China, and have amped up the volume regarding Iran. You talk about our need as a country to have an external enemy. In what way do you believe that need will manifest itself in any coming military actions?

MB: I deal with this issue in A Question of Values. America was founded within a conceptual framework of being in opposition to something—the British and the Native Americans, to begin with—and it never abandoned that framework. It doesn’t really have a clear idea of what it is in a positive sense, and that has generated a kind of national neurosis. I mean, we were in real trouble when the Soviet Union collapsed; in terms of identity, we were completely adrift until the attacks of 9/11 (just think of how frivolous and meaningless the Clinton years were, in retrospect). War is our drug of choice, and without an enemy we enter a kind of nervous breakdown mode.

Hence the saber rattling against Iran now, or the foolish decision to set up an army base in Australia to “watch” China. What bothers me is that we are doing all of this unconsciously, and we always have. Mr. Obama, like most of his predecessors, is little more than a marionette on strings (Mr. Carter being the only postwar exception to this pattern, in a number of significant ways). Once again, true intelligence is ontological, and as a nation, we are sorely lacking in that department.

NP: But haven’t we heard all this before? After all, there is a long history of the so-called “declinist” argument, that the country is in permanent decline and has no future. Such books come and go; meanwhile, the country goes on. What makes your book, or books, different from previous assertions that “it’s all over”?

MB: Decline takes time; an empire doesn’t come to an end on August 4, A.D. 476, at two in the afternoon. Similarly, declinist analysis also takes time: the books you are referring to form a continuous argument, from Andrew Hacker’s The End of the American Era in 1970 to George Modelski’s Long Cycles in World Politics in 1987 to Why America Failed in 2011. And there have been a good number of declinist works in between. These books are not wrong; rather, they are part of an ongoing recognition that the American experiment is finished. Even then, we can go back to before Professor Hacker to Richard Hofstadter (1948), who called the US a “democracy of cupidity”; or to C. Vann Woodward (1953), who wrote that we were probably doomed because we had put all of our eggs in one ideological basket, namely laissez-faire economics. During these years the country hasn’t just “gone on”; what it has done is progressively fallen apart, and these writers have made it their business to document the process.

NP: Finally, you moved to Mexico a number of years ago. Is all this why? Do you ever see yourself coming back to America?

MB: There are a lot of answers to that question, and yes, some of the reasons can be found in the above dialogue. You know, the air is really “thin” in the United States, because the value-system is one-dimensional. It’s basically about economic and technological expansion, not much else; the “else” exists at the margins, if it exists at all. I first discovered this when I traveled around Europe in my mid-20s. I saw that the citizens of those countries talked about lots of things, not just about material success. Money is of course important to the citizens of other countries, Mexico included, but it’s not necessarily the center of their lives.

Here’s what the US lacks, which I believe Mexico has: community, friendship, appreciation of beauty, craftsmanship as opposed to obsessive technology, and—despite what you read in the American newspapers—huge graciousness; a large, beating heart. I never found very much of those things in the US; certainly, I never found much heart. American cities and suburbs have to be the most soulless places in the world. In a word, America has its priorities upside down, and after decades of living there, I was simply tired of being a stranger in a strange land. In A General Theory of Love, Thomas Lewis and his colleagues conclude that happiness is achieved only by those who manage to escape the American value-system. Well, the easiest way to escape from that value-system, is to escape from America.

Nomi Prins is a journalist and senior fellow at Demos. She is the author of Other People’s Money: The Corporate Mugging of America and Jacked: How “Conservatives” are Picking Your Pocket (Whether You Voted For Them or Not).

Why The Wealthiest Americans Are the Real ‘Job-Killers’

In Uncategorized on July 20, 2011 at 9:00 pm

Train Chartering & Private Rail Cars

OLDSPEAK: ‘”It’s a beautiful thing, the destruction of words.’ –Syme (1984). Doublethink par excellence. ‘That the wealthy are “job creators,” and therefore have interests that must be defended by the public at large, is a talking-point that, however facile, is so popular it slips effortlessly from the lips of conservatives every day…It’s also complete nonsense; the opposite of the truth. Sure, the wealthy create a few jobs – people who offer exclusive services or sell them high-end goods. But the overwhelming majority of jobs in this country are “created” by ordinary Americans when they spend their paychecks.” -Joshua Holand. What a sad society it is where truth has so little sway in the course of its affairs. In this backward economic system, less consumption is seen as undesirable , even if it’s been established that perpetual ‘growth’ and ever-increasing consumption is unsustainable and life threatening our planet and everything on it. In this reality controlled society America’s bought and paid for ‘public servants’ are allowed to so brazenly propagate their overseer’s baseless propaganda and pass laws that benefit the few, with no challenge from its corporate consolidated and controlled journalists and news outlets. “Freedom is Slavery”

By Joshua Holand @ AlterNet:

That the wealthy are “job creators,” and therefore have interests that must be defended by the public at large, is a talking-point that, however facile, is so popular it slips effortlessly from the lips of conservatives every day.

It can be deployed for any purpose – not only in calling for more tax breaks for the rich, but also when opposing public interest regulation, consumer litigation and worker protections. Rep. Michele Bachmann, R-Minnesota, even used it to deflect attention from the “gay rehabilitation” services her clinic allegedly offers. When asked about it by ABC News, Bachmann merely acknowledged, “we do have a business that deals with job creation.” When pressed, she stuck with it: “As I said, again, we’re very proud of our business and we’re proud of all job creators in the United States.”

It’s also complete nonsense; the opposite of the truth. Sure, the wealthy create a few jobs – people who offer exclusive services or sell them high-end goods. But the overwhelming majority of jobs in this country are “created” by ordinary Americans when they spend their paychecks.

Consumer demand accounts for around 70 percent of our economic output. And with so much wealth having been redistributed upward through a 40-year class-war from above, American consumers are too tapped out to spend as they once did. This remains the core issue in this sluggish, largely jobless recovery. The wealthy, in their voracious appetite for a bigger piece of the national pie, are the real job-killers in this economic climate.

Don’t take my word for it. The Wall Street Journal reported this week that “the main reason U.S. companies are reluctant to step up hiring is scant demand, rather than uncertainty over government policies, according to a majority of economists” the paper surveyed. That jibes with what business owners themselves are saying. Last week, the National Federation of Independent Businesses released a survey of small businessmen and women that found widespread “pessimism about future business conditions and expected real sales gains.”

New York Times reporter David Leonhardt wrote this week that “We are living through a tremendous bust. It isn’t simply a housing bust. It’s a fizzling of the great consumer bubble that was decades in the making.”

The auto industry is on pace to sell 28 percent fewer new vehicles this year than it did 10 years ago — and 10 years ago was 2001, when the country was in recession. Sales of ovens and stoves are on pace to be at their lowest level since 1992. Home sales over the past year have fallen back to their lowest point since the crisis began. And big-ticket items are hardly the only problem.

Leonhardt cites worse-than-expected retail sales and a study conducted by the New York Federal Reserve Bank that found “discretionary service spending” – which excludes housing, food and health care – to have dropped 7 percent, more than twice the decline we saw during previous recessions.

“If you’re looking for one overarching explanation for the still-terrible job market,” Leonhardt concludes, “it is this great consumer bust. Business executives are only rational to hold back on hiring if they do not know when their customers will fully return. Consumers, for their part, are coping with a sharp loss of wealth and an uncertain future (and many have discovered that they don’t need to buy a new car or stove every few years).”

Average American households’ economic malaise started long before the current downturn, as those at the top started grabbing an ever-increasing share of the pie in the 1970s. These graphs, courtesy of Mother Jones, tell the tale:

(click for larger version)Discounting those in the top 20 percent of the pile – according to economists Emanuel Saez and Thomas Picketty it’s actually the top 10 percent – Americans haven’t seen their real incomes rise in the past 30 years.

Paul Buchheit, a professor with City Colleges of Chicago, crunched some numbers using IRS data and found that “if middle- and upper-middle-class families had maintained the same share of American productivity that they held in 1980, they would be making an average of $12,500 more per year.” In other words, because the share of income going to the top has increased so dramatically, ordinary people have $12,500 less in their wallets today. Studies have shown that when wealthy people grab more post-tax income they’re more likely to bank it than to spend it, so much of that $12,500 also represents lost demand, and hence less jobs. Wealthy Americans’ avarice is a job-killer.

American households compensated for their flat incomes first by sending millions of women into the workforce – the single-earner household is largely a relic of the past – and then by running up lots of debt. In the 1970s, Americans socked away between 8-12 percent in case hard times hit, but the national savings rate declined precipitously as the top earners started grabbing an outsized share of the nation’s income.

As a result, we were among the least prepared citizens in the developed world to handle the crash – we didn’t have a rainy-day fund put away.

 

 

(click for larger version)

Then came the Great Recession. The federal Reserve did a study in 2009 in which it went back and surveyed the same households that had been examined in a 2007 snapshot of consumer finances to see how they were faring during the recession. The study found that between 2007 and 2009, median family net worth fell 23 percent, from $125,400 to only $96,000.

Like income, that continued a longer trend that began as those at the top of the pile began grabbing an ever-greater share of the nation’s wealth. As Edward Wolff, an economist at NYU, noted, between 1983 and 2007, only those in the top 5 percent of the income distribution added to their households’ net worth (PDF). The rest of us tread water. Economists talk about a “wealth effect,” which simply means that when you have more wealth you tend to spend more freely. So, this concentration of wealth has also impacted demand.

None of this is particularly complex. In 1978, the top 1 percent of the ladder took in just under 9 percent of the nation’s income, leaving a bit more than 91 percent for the rest of us. In 2007, the year before the crash, they took in 23.5 percent, leaving just 76.5 percent for the rest of the population to split up.

They banked most of that income, whereas we would have spent it. The fact that we’re broke means that businesses are facing less demand for their goods and services than they otherwise would, and have less need to hire a bunch of employees. And that dynamic explains why it’s the wealthiest Americans who are the real “job killers.”


For Sale: The Desperate States Of America

In Uncategorized on June 3, 2011 at 11:35 am

Oldspeak:” The U.S. economy is being restructured in a way that will largely benefit wealthy elites and be detrimental to the rest. Everything public: Government, Schools, Prisons, Energy, Services, Parks, Lands, Housing Health Care, etc. if the free-market ideologues in government have their way, is to be privatized. The usual result of  privatization: significant increases in costs to customers; reduction in quality of and access to service. When dealing with organizations whose prime directives are to Internalize and maximize ever-increasing profit while externalizing and minimizing as much cost as possible this is the only logical outcome. We’ve seen it played out time and time again in the gutting of America. “The core tenets of free market fundamentalism —  privatization, deregulation, and cuts to government services — has laid the foundation for the economic breakdown we are witnessing today.  And this recession-induced breakdown is being used by professional disaster capitalists to warrant more privatization, deregulation, and cuts to government services until there is nothing left.  It is clear that the continued auctioning off of pieces of the state to large corporations will result in a total loss of democratic control to the disaster capitalists who are profiting immensely from their orchestrated crisis.” –Rania Khalek.  Meanwhile, the “Defense” budget continues to grow. Why is our “civilization” predicated on “owning” everything, hoarding “wealth” and “power”? Why are a few deranged people, Bohemian Grove Members willing to sacrifice our entire planet for their own personal gain?

By Rania Khalek @ Common Dreams

While we have been frantically playing defense against relentless assaults on multiple fronts, from anti-union legislation to draconian anti-choice laws to the attempted privatization of Medicare, the selling off of public assets to the private sector has received little attention.

As states face a budget shortfall of $125 billion dollars for fiscal year 2012, leaders are searching for creative ways to fill budget gaps, while refusing to consider the one legitimate solution: forcing tax-dodging corporations and the rich to pay their fair share in taxes.  Rather than upset the moneyed interests who bought their seats in office, politicians of all stripes prefer to cut pensions, close schools, slash child nutrition programs, and most importantly privatize, privatize, privatize!

In 2008, Chicago Mayor Richard Daley auctioned off the city’s 36,000 parking meters to a Morgan-Stanley lead partnership, for a lump sum of $1.15 billion.  According to Bloomberg, Chicago drivers will pay Morgan Stanley at least $11.6 billion to park at city meters over the next 75 years, 10 times what the system was sold for.  The Mayor used millions from the deal to help balance the budget, but since then, Morgan Stanley has raised parking fees 42%.  It now plans on stuffing more cars into fewer metered spaces by getting rid of marking lines, raising the number of metered slots and expanding the hours that require fees.  Chicago gave up billions of dollars in revenue for a short-term fix and now, if the city faces another fiscal crisis, it will be left with an asset that generates revenue for Morgan Stanley.  Despite the controversy in Chicago, the Associated Press reports that New York is exploring private options for its parking spaces as well.

Meanwhile, Rep. Dennis Ross (R-FL), a member of the Tea Party Caucus, has suggested that one way to help close the nation’s budget deficit is to “start liquidating” public lands in Utah by privatizing large parts of the state, 70 percent of which is owned by the federal government.  Soon after, Utah Governor Gary Herbert hopped on board, agreeing that Ross’s idea was “worth exploring.”  He even went so far as to claim that the land would be better in private hands because private owners maintained Indian artifacts and burial grounds better.  Apparently his position is quite popular, since it has been embraced by Senators Mike Lee (R-UT) and John McCain (R-AZ), who proposed a bill which would sell off land in Utah and other western states.

The most insidious privatization scheme so far this year was in Wisconsin, the center of the state budget battles.  A provision in Republican Governor Scott Walker’s budget repair bill would have empowered politicians to sell any state-owned heating, cooling, or power plant, including those located in prisons and the University of Wisconsin campuses, to anyone for any price at any time, without public approval or a call for bids.  Although the provision was ultimately removed from the budget bill just before it passed, it is expected to be taken up again later this year.

In an effort to offset an $8 billion budget deficit, Ohio Republican Governor John Kasich has proposed privatizing five prisons, a sale expected to bring in an estimated $200 million.  Florida’s GOP-controlled Legislature is set to require the state to privatize prisons in South Florida, home to one-fifth of the statewide inmate population of 101,000.  Louisiana Republican Governor Bobby Jindal plans to sell three state prisons to private operators.  Similar bills have sprung up in other states, nevermind that evidence showing that private prisons actually save any money is seriously lacking.

In more desperate and bizarre attempts to fill in budget gaps the City Council in Naperville, IL is considering giving corporations exclusive rights to plaster their logos on city property.  One proposed municipal sponsorship deal would allow Kentucky Fried Chicken to repair potholes in exchange for stamping the fresh asphalt with the chicken chain’s logo.

It would be foolish to assume that the push for privatization is isolated to the GOP or the states.  The “liberal” Obama administration has proposed legislation that would establish a presidentially appointed, seven-member Civilian Property Realignment Board, tasked with evaluating excess federal properties.  The surplus includes 12,000 buildings, pieces of land and other property nationwide that the federal government wants to get rid of.

According to McClatchy, the White House claims it would see savings of as much as $15 billion by no longer having to maintain or pay for utilities at some of the underused or unused facilities.  The government in 2009 reported spending $134 million to maintain buildings that have been declared excess.  It costs an estimated $1.3 billion a year to maintain federal buildings that aren’t yet declared surplus but that go underused.  However, it remains unclear if and how this strategy would result in a significant enough amount of savings to make a dent in a trillion dollar deficit.

Ironically, the list includes land where the dorms in Daniel Boone National Forest are located, which once served as a camp for workers from the Civilian Conservation Corps, a Great Depression work program.  Rather than invest in jobs programs to put the unemployed back to work like FDR did during the Great Depression — an idea that the Obama administration has all but abandoned — the President has instead chosen the path of austerity and privatization, tactics that have historically been detrimental to society.

It’s no secret that corporate behemoths, backed by their free-market think tanks and foundations have long dreamed of privatizing everything public.  Thus far, they have been largely successful in hollowing out the defense department by outsourcing computer, intelligence, and even combat operations to for-profit companies like Lockheed Martin, Halliburton, and Blackwater, to name a few.  We now know that this was done intentionally, strategically planned by the likes of Donald Rumsfeld and Dick Cheney, who profited magnificently as a result.  The terrorist attacks on 9-11 presented the Bush administration with the opportunity to accelerate the outsourcing of war.

In the Shock Doctrine, Naomi Klein thoroughly documents how wealthy elites often use times of crisis and chaos to impose unpopular policies that restructure economies and political systems to further advance their interests.  She calls these orchestrated raids on the public sphere in the wake of catastrophic events, combined with the treatment of disasters as exciting market opportunities, “disaster capitalism.”

While catastrophic events, such as natural disasters or terrorist attacks, are difficult to predict, economic disasters are not.  With this in mind, it’s difficult to deny that the economic crisis has been somewhat manufactured to serve as a pretext for draconian cuts into social programs that the corporate state has long been eyeing.  On it’s face, this theory seems conspiratorial, however a brief review of recent history demonstrates a trend of intentional crisis generation.

Paul Krugman understood this concept in 2003, during the implementation of the Bush era tax cuts for the wealthy, when he wrote the following:

“the gimmicks used to make an $800-billion-plus tax cut carry an official price tag of only $320 billion are a joke, yet the cost without the gimmicks is so large that the nation can’t possibly afford it while keeping its other promises.

But then maybe that’s the point. The Financial Times suggests that ”more extreme Republicans” actually want a fiscal train wreck: ”Proposing to slash federal spending, particularly on social programs, is a tricky electoral proposition, but a fiscal crisis offers the tantalizing prospect of forcing such cuts through the back door.”

It’s no secret that right-wing ideologues want to abolish programs Americans take for granted. But not long ago, to suggest that the Bush administration’s policies might actually be driven by those ideologues — that the administration was deliberately setting the country up for a fiscal crisis in which popular social programs could be sharply cut — was to be accused of spouting conspiracy theories.”

As the free-market ideologues in government continue to neglect America’s aging infrastructure while making deep cuts into education funding and borrowing upwards of a trillion dollars for two failed wars, they reaffirm the perception that the government is inefficient and incapable of providing what they believe private enterprise can do better.

The fact of the matter is that those now shrieking about big government debts and deficits have spent the last decade maximizing government spending with unaffordable wars, financial deregulation, and tax cuts for the wealthy, which they knew would cost trillions of dollars.  Today, the consequences of their actions, which they were warned about, are the ploy these very same people are using to justifythe accelerated demise of welfare programs, and the incremental destruction of the meager social safety net that guarantees Americans won’t starve in their old age.

The core tenets of free market fundamentalism —  privatization, deregulation, and cuts to government services — has laid the foundation for the economic breakdown we are witnessing today.  And this recession-induced breakdown is being used by professional disaster capitalists to warrant more privatization, deregulation, and cuts to government services until there is nothing left.  It is clear that the continued auctioning off of pieces of the state to large corporations will result in a total loss of democratic control to the disaster capitalists who are profiting immensely from their orchestrated crisis.

Rania Khalek is a young, progressive activist with a passionate dedication to social justice. Check out her blog Missing Pieces or follow her on twitter @Rania_ak. You can contact her at raniakhalek@gmail.com.