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

Posts Tagged ‘Globab Economic System’

The Struggle To Save Our Planet Heats Up

In Uncategorized on April 25, 2013 at 1:46 pm

Adapting to Climate ChangeOldspeak: “To get to the root of the issue, it becomes necessary to analyze the whole economic system of production and exchange of goods and services—that is, capitalism. Only by doing this can we hope to formulate an effective strategy to combat climate change and thereby recognize that ecological and social justice are inseparably connected to each other, via an organized, grassroots and global challenge to the capitalist social order…

One doesn’t need to be an anti-capitalist to take part in this struggle, but one does need to recognize that unless the pendulum of social power swings back toward the working people in the U.S. and around the world, and that limits and regulations are placed on the activities of corporate power, we have no hope of saving our world. This struggle is not really about technology or which renewable energy models should be deployed or whether this or that politician or this corporation or that CEO is more or less evil than the other. It’s not about things or people at all—it’s about relationships. It’s about democracy, which is itself about social power, and the relationships it presumes.

The power of the oceans, the power of scientific rationality, the power of the tides and hurricane-force winds are self-evidently not enough to persuade capitalists to act. The only force strong enough to do that is the organized force of the people. We must take the place of gravity to pull the pendulum of contending class forces—wrenched rightward by 30 years of neoliberalism—back toward our side.” –Chris Williams.

YES! The root of the issue is capitalism. We have to stop nibbling around the edges. We have to recognize that capitalism in its current globalized and unrestrained form is fundamentally at odds with Democracy, human and natural rights. We have to have an honest critical discussion about global capital and how it’s destroying our planet. We must reassert our sacred commitment, as our ancestors did for millennia, to be custodians of our earth mother, not her rapists. We must recognize that infinite growth is impossible on a finite planet. The global capitalist enterprise is collapsing and blowing up all around us, one need only look to texas and Bangladesh and the explosion in unemployment and poverty, the collapse of ecosystems, to see what’s happening.  We cannot keep dumping wasteful trillions into failing, obsolete, toxic, fossil and nuclear fuel based infrastructure that is destroying and poisoning our planet. We have to fundamentally rethink how we organize our civilization and economy. The systems we have are not working.

By Chris Williams @ Z Magazine:

Capitalism stands as a death sentinel over planetary life. Recent reports from institutions, such as the World Bank, detail how, as a result of human activity, we are on track for a 4° Celsius increase in average global temperatures. Should this come to pass, the Earth would be hotter than at any time in the last 30 million years; an absolutely devastating prognosis that will wipe out countless species as ecosystems destabilize and climate becomes a vortex of erratic, wild weather events.

Despite this Americans, suffered through an election campaign in which climate change literally wasn’t mentioned—at least until the final weeks, when a hurricane forced the presidential candidates to acknowledge it.

Even as the World Bank published its report—with the conclusion that avoiding a 4° temperature increase was “vital for the health and welfare of communities around the world”—bank officials were nevertheless still handing out loans to construct more than two dozen coal-fired power plants to the tune of $5 billion.

In direct contrast to politicians and the media, fully 80 percent of Americans believe that climate change will be a serious problem for the United States unless the government does something about it—with 57 percent saying the government should do a “great deal” or “quite a bit.”

Even for the 1 in 3 Americans who say they are wary of science and distrust scientists, 61 percent now agree that temperatures have risen over the last 100 years. Commenting on the new poll, Stanford University social psychologist and pollster Jon Crosskick wrote, “They don’t believe what the scientists say, they believe what the thermometers say…. Events are helping these people see what scientists thought they had been seeing all along.”

This background of overwhelming public concern helped situate the national demonstration in Washington, DC on February 17, against the building of the Keystone XL tar sands pipeline from Canada to Texas. If built, the pipeline will carry 800,000 barrels a day of highly-polluting tar sands oil, effectively dealing a death blow to hopes of preventing rampant climate change. The demonstration added significance as activists attempted to draw a line in the sand and pose the first big litmus test for the second term of Barack Obama.

Given that an overwhelming majority of Americans, and even most people hostile to climate science, are in favor of action, why is it that the overwhelming majority of politicians—who presumably are subject to the same weather as the rest of us—can’t seem to see the need? Why aren’t our elected representatives proposing serious measures to prevent it from getting worse?

How one answers this question is not one of semantics. Rather, it is of decisive importance because it determines how one should fight and with whom one should forge alliances. Unfortunately, it is a question that Bill McKibben, cofounder of 350.org and a key organizer of the February 17 demonstration, has struggled with, but not conclusively resolved. His confusion is evidenced by the title of an article he wrote in January: “Our Protest Must Short-Circuit the Fossil Fuel Interests Blocking Barack Obama”—implying that Obama would do something if he could.

The momentum generated from this demonstration may serve as the launching pad for a sustained campaign that begins to stitch together the myriad forces fighting locally around the country, transforming previously isolated or single-issue initiatives and groups into a broad united front for climate justice that draws in other forces, such as unions.

This was the position of Big Green groups like the Sierra Club. Even as it pledged for the first time to take part in civil disobedience, its executive director, Michael Brune, declared that the new strategy was part of “a larger plan to support the president in realizing his vision and make sure his ambition meets the scale of the challenge.”

The first thing Obama and his new Secretary of State John Kerry could do is say no to the construction of the Keystone XL pipeline. That would be inordinately easy, as Obama has the final say and doesn’t require Congress’ support to shut it down. After 53 senators from both parties signed a letter urging him to green-light the pipeline, Obama is running out of ways to further delay his decision.

In spite of the rhetoric of his inaugural address, the pivotal question remains: Is Barack Obama—or any Democratic leader, for that matter—really on our side? Is it just a question of persuading a reluctant friend, hamstrung by a right-wing, dysfunctional Congress and stymied by powerful corporate interests, to act by demonstrating outside his house to let him know we’re there for him? Or should we be surrounding his house, knowing full well that he won’t give in to our demands without a social movement that acts independently of his wishes and control.

To understand the reasons for Obama’s “lack of desire” to address climate change—a microcosm of the larger inability of global leaders and institutions to do likewise amid two decades of futile climate negotiations—it’s necessary to go beneath the surface appearance of things; to examine the structure and ideology of the system of capitalism.

Systemic Causes

When their financial system was threatened by the crisis that began in 2008, political leaders didn’t sit around for 20 years arguing that they had to wait until all the facts were in and attempting to reach consensus on a solution. No, in a heartbeat, they threw trillions of dollars at the banks.

But when a far larger crisis, one that threatens the basic stability of the planetary biosphere, unfurls as a result of the same policies of reckless growth, waste and warfare, they spend their time trashing scientists and ignoring the unraveling weather outside their windows. Therefore, to get to the root of the issue, it becomes necessary to analyze the whole economic system of production and exchange of goods and services—that is, capitalism. Only by doing this can we hope to formulate an effective strategy to combat climate change and thereby recognize that ecological and social justice are inseparably connected to each other, via an organized, grassroots and global challenge to the capitalist social order.

One doesn’t need to be an anti-capitalist to take part in this struggle, but one does need to recognize that unless the pendulum of social power swings back toward the working people in the U.S. and around the world, and that limits and regulations are placed on the activities of corporate power, we have no hope of saving our world. This struggle is not really about technology or which renewable energy models should be deployed or whether this or that politician or this corporation or that CEO is more or less evil than the other. It’s not about things or people at all—it’s about relationships. It’s about democracy, which is itself about social power, and the relationships it presumes.

The power of the oceans, the power of scientific rationality, the power of the tides and hurricane-force winds are self-evidently not enough to persuade capitalists to act. The only force strong enough to do that is the organized force of the people. We must take the place of gravity to pull the pendulum of contending class forces—wrenched rightward by 30 years of neoliberalism—back toward our side.

Ultimately, as a socialist, I would argue that we need to live in a world where there are no classes with diametrically opposed interests, in perpetual conflict over social and political power. Only in such a socially just and ecologically sustainable world will there be any long-term hope for humanity to live in peace with itself, other species, and the planet on which we depend. The stepping-stones of the revolutionary road are the acts of struggle needed to create it.

In contrast to his inaugural speech, Obama’s first press conference after re-election gave a more accurate insight into the priorities of his second term. Unlike four out of five Americans who want the government to do something to address climate change, Obama made it clear that this wouldn’t be a priority for his administration: “Understandably, I think the American people right now have been so focused and will continue to be focused on our economy and jobs and growth that, you know, if the message is somehow we’re going to ignore jobs and growth simply to address climate change, I don’t think anybody’s going to go for that. I won’t go for that.”

With two mentions of the need for “growth” in a single sentence, Obama faithfully echoed the declaration of the Earth Summit, Rio+20, held in June 2012, where the representatives of 190 countries, while dismally avoiding any commitment to new targets or limits on greenhouse gas emissions, did commit—16 times in all—to “sustained growth,” a phrase taken to be synonymous, rather than in fundamental conflict, with another term: “sustainability.”

The obligation to promote growth underlines why the root of the climate problem is systemic. If capitalism is not growing, it is in crisis. Growth must occur continuously and in all sectors. If the sector in question is highly profitable, it will grow even faster, regardless of any social considerations.

Like, for example, the fossil-fuel sector. Oil production, rather than declining, as is desperately needed to stop climate change, is predicted to increase from the current 93 million barrels per day to 110 million by 2020—with some of the biggest increases worldwide occurring in the U.S. The Holy Grail of all administrations since Richard Nixon —energy independence—is being made possible by the policies of the Obama administration, as the New York Times reported in a special feature: “National oil production, which declined steadily to 4.95 million barrels a day in 2008 from 9.6 million in 1970, has risen over the last four years to nearly 5.7 million barrels a day. The Energy Department projects that daily output could reach nearly 7 million barrels by 2020. Some experts think it could eventually hit 10 million barrels—which would put the United States in the same league as Saudi Arabia.”

As the climate blogger and former Clinton administration official Joseph Romm put it, Obama is “basically pushing a moderate Republican agenda. It’s just that there aren’t any moderate Republicans left, much as we don’t have any ‘below average temperature’ years any more.”

Again, if we examine the roots of the issue, we find that the pathetic response of an administration purporting to be concerned with environmental questions has much less to do with individual personnel than with the dynamics of capitalism.

In 1992, when George H.W. Bush flew to Rio for the first Earth Summit, all things seemed possible. The “evil empire”—as Ronald Reagan liked to call the tyrannical dictatorships of the USSR and Eastern Europe, which operated falsely in the name of socialism—had collapsed under the weight of its own economic, social, and ecological contradictions. Politicians in the West were euphoric. They had seen off what they perceived to be an existential threat to their system.

In today’s world of enforced austerity, it’s difficult to recapture the sense of optimism that pervaded Western ruling class circles in the early 1990s. The atmosphere of triumphalism was so great even Republican presidents like Bush could make promises about protecting the environment. A few years later, when the 1997 Kyoto Protocol was written, Western governments were still willing to pledge that they would do the heavy lifting with regard to reducing emissions, while developing countries would be free from such limits.

Hence, the seeming “lack of will” at Rio+20 last year can be much better explained by the onset of a huge structural crisis of capitalism, rather than the “lack of vision” of individual politicians.

Instead of optimism about acting on climate change, the real optimism these days among capitalists is about the profits they can make from the oil and gas bonanza. Oil giant and planet-wrecker par excellence BP is predicting that by 2030, the entire Western Hemisphere will be energy independent, due to the expansion of new techniques for oil and gas exploration, such as fracking in shale deposits and horizontal and deep-water drilling. Fossil fuels are expected to remain at 81 percent of the energy mix in an energy economy that will be 39 percent larger than today.

Naturally, oil executives such as Scott D. Sheffield, chief executive of Texas-based Pioneer Natural Resources—headquartered in an area of the world that received only two inches of rain for the whole of 2011 and spent most of the year with large parts of the state on fire—are nevertheless overjoyed: “To not be concerned with where our oil is going to come from is probably the biggest home run for the country in a hundred years… It sort of reminds me of the industrial revolution in coal, which allowed us to have some of the cheapest energy in the world and drove our economy in the late 1800s and 1900s.”

Depending on who you are, the outlook for natural gas is even rosier. The International Energy Agency recently released a report that asked in its title “Are We Entering a Golden Age of Gas?” The answer was a resounding “yes,” due to the North American shale gas boom and a “strong post-crisis recovery.”

The other side to this “golden age,” as the report makes clear, is that future economic expansion based on natural gas “alone will not put the world on a carbon emissions path consistent with an average global temperature rise of no more than 2° Celsius,” but on a “trajectory consistent with stabilizing the concentration of greenhouse gases in the atmosphere at around 650 parts per million CO2 equivalent, suggesting a long-term temperature rise of over 3.5°  Celsius.”

Insane Logic

In the insane capitalist “logic” of the 21st century, short-term profit-taking must be maximized at all costs. In a little-reported phenomenon, the energy companies have figured out that they can find oil in shale deposits previously considered marginal in the same way that they “frack” for natural gas. With the price of oil over $80 a barrel, it’s profitable to seek oil in this way, regardless of the environmental cost.

Hence, not only is there a natural gas boom in the U.S., but there’s also an enormous, though much less publicized, oil boom. In fact, the oil boom from previously untapped shale deposits is so large that its effects can be seen from space. The Bakken Field in North Dakota, all 15,000 square miles of it, is one of the largest contiguous oil fields in the world, with output doubling every 18 months. In Texas, production from the Eagle Field increased 30-fold between 2010 and 2012. The reason that the remote and sparsely populated Bakken Field rivals Chicago in light pollution, making it visible to orbiting satellites, is because the natural gas that comes up with the oil, rather than being collected and sold, is set on fire in a process called “flaring.” This senseless act of vandalism and waste is the result of the fact that companies are in a rush to make money from oil that they can’t be bothered to develop the infrastructure necessary to cope with associated natural gas.

As Stanford University academic Adam Brandt, who analyzes greenhouse gas emissions from fossil fuels, explains: “Companies are in a race with their competitors to develop the resource, which means there is little incentive to delay production to reduce flaring.” In Texas, the natural gas flared in 2012 could have provided electricity to 400,000 homes.

So while one set of capitalists is fracking for natural gas on the East Coast—thanks to political leaders like Governor Andrew Cuomo in New York, who appears to be ready to open up the state to fracking—in other parts of the country, a different set of capitalists is setting fire to the exact same gas because it’s a nuisance that slows down production of the different fossil fuel they’re after.

Nothing could exemplify the utter waste and anarchic insanity of capitalism than this fact. One of the government regulatory bodies supposedly in charge of overseeing the oil corporations, North Dakota’s Industrial Commission, gave their logic for refusing to take action against this senselessness: “If we restricted oil production to reduce flaring, we would reduce the cash flow from oil wells fivefold…. As well as cutting waste, we are mandated to increase production, which we would not be doing.”

As for the third and dirtiest arm of the triumvirate of fossil fuels, the world is predicted to be burning 1.2 billion tons more coal per year in 2017. Coal has actually declined in use in the U.S. due to companies switching electricity production to cheaper natural gas, which has reduced U.S. carbon emissions.

One might think this is a good thing. However, capitalism is a global system, so any coal not sold here finds a market overseas. The Chinese population is literally choking to death on grotesque amounts of air pollution in cities such as Beijing. And who’s to blame? The U.S. government says China is building too many coal plants, but increasing amounts of the coal in Asia is coming from mines in the U.S. According to a report in ClimateWire: “Although Chinese coal is largely sourced from domestic mines, EIA figures show that U.S. coal shipments to China have dramatically risen in recent years, punctuated by a 107 percent jump from 2011 to 2012. Chinese imports of U.S. coal surged from 4 million tons in 2011 to 8.3 million tons last year.”

This brings us to the international dimension—and the economic and military competition between countries that makes it impossible for effective international agreements on climate change and emissions reduction to be negotiated. If Barack Obama really wanted to do something about reducing energy consumption in America—and killing a lot fewer people around the world—he could start with a massive reduction in military spending. The U.S. military is the single biggest user of energy in the United States, with the Department of Defense responsible for 80 percent of government energy requirements. Just the cost of the war in Iraq would have paid, from now until 2030, for all the investment in renewable energies necessary to stay below 2° Celsius of warming.

These examples illustrate two things. First, we are in a do-or-die battle with the economic system because capitalism is in fundamental conflict with the biosphere. And second, only a committed alliance of social and ecological justice activists that is clear about the nature of the enemy and prepared to confront the political and economic architects of the crisis stands a hope of winning.

This is why fighting the XL pipeline is about much more than stopping a single pipeline or the first test of Obama’s second term. It’s about building a movement for social and ecological justice and making it clear that we are going to organize to prevent any more infrastructure being built that will drive us over the ecological cliff.

As energy analyst Chris Nelder has put it, we face a choice between keeping the old fossil-fuel based infrastructure that is burning up the planet, and adding to it at an annual cost of $1.6 trillion just to keep it running—or transitioning, at much lower economic, let alone environmental, cost, to a new energy paradigm. His figures and argument are worthy of a lengthy quote: “Instead of incremental spending on an effectively dead transportation regime, we should be thinking about one that can survive the challenges ahead, and deliver more economic benefits than costs. We should be setting an ambitious target, like replacing all commercial passenger air flights with high speed rail for trips under 1,000 miles, replacing 90 percent of our city street traffic with light rail, and moving all long-haul freight traffic to rail. Even if the cost of all that rail infrastructure were in the range of $3 trillion, it would be a fantastic investment.

“Against $6 trillion (minimum) in sunk costs and $1.6 trillion per year in maintenance, the $1.2 trillion per year, plus building the high speed rail network at a generous estimate of $1 trillion, looks very reasonable.

“Put another way: Would you rather spend another $32 trillion over the next 20 years just to maintain a outmoded, unscaleable, aged, unhealthy system, plus another $2.8 trillion in lost productivity due to delays and gridlock, only to wind up out of gas? Or would you rather spend $25 trillion to repair our infrastructure, transition transportation to rail, transition the power grid to renewables, upgrade the entire grid, and solve the carbon problem, to have free fuel forever.”

Of course, whether we travel that road or not—and whether we leave a world to our descendants as beautiful as the one we were born into—will depend on our own independent, organized self-activity to wrench control away from a ruling elite that is quite happy to continue making money from a system that must be overturned.

Chris Williams is an environmental activist, professor of physics and chemistry at Pace University, and the author of Ecology and Socialism.

The 1% Doctrine: Will Capitalism Destroy Civilization?

In Uncategorized on March 7, 2013 at 4:45 pm

Dollar burn through EarthOldspeak:” The official doctrines suffer from a number of familiar “market inefficiencies,” among them the failure to take into account the effects on others in market transactions. The consequences of these “externalities” can be substantial. The current financial crisis is an illustration. It is partly traceable to the major banks and investment firms’ ignoring “systemic risk” – the possibility that the whole system would collapse – when they undertook risky transactions.

Environmental catastrophe is far more serious: The externality that is being ignored is the fate of the species. And there is nowhere to run, cap in hand, for a bailout.

In future, historians (if there are any) will look back on this curious spectacle taking shape in the early 21st century. For the first time in human history, humans are facing the significant prospect of severe calamity as a result of their actions – actions that are battering our prospects of decent survival. ” –Noam Chomsky
When this man speaks, we should all listen. While the real economy, crumbles and disintegrates, 1 in 6 people go hungry. 1 in 2 people live at or near the poverty line. High unemployment persists and the number homeless people is at the last depression era levels. The Dow Jones is as it was before the last global economic crash – at a record high. Corporate profits are through the roof, while most people’s wages have been cut. Most profits are being funneled to the controllers of our political systems who’ve demonstrated contempt for the planet and every living thing on it who wont rest until every resource is exploited and maximum profit is derived from them. This powerful vampire capitalist system is, unsustainable; accelerating our progression toward environmental catastrophe. It constitutes an existential threat to the planet and by extension, all life on it. On can only wonder what madness will be wrought after the next global economic crash, but our civilizations first global ecological crash will render economics, politics and power as we know it irrelevant. Our corporate controllers do not want us to recognize this essential reality, even though most of us do. It is the reason “the United States has not adopted any consistent and stable set of policies at the national level to foster the use of renewable energy”. None of the manufactured crises we’re encouraged to focus on matter when there’s no clean water, air or soil. Greed has infected our controllers so thoroughly that this horrifying fact is lost on them. “Profit Is Paramount”

By Noam Chomsky @ Truthout:

There is “capitalism” and then there is “really existing capitalism.”

The term “capitalism” is commonly used to refer to the U.S. economic system, with substantial state intervention ranging from subsidies for creative innovation to the “too-big-to-fail” government insurance policy for banks.

The system is highly monopolized, further limiting reliance on the market, and increasingly so: In the past 20 years the share of profits of the 200 largest enterprises has risen sharply, reports scholar Robert W. McChesney in his new book “Digital Disconnect.”

“Capitalism” is a term now commonly used to describe systems in which there are no capitalists: for example, the worker-owned Mondragon conglomerate in the Basque region of Spain, or the worker-owned enterprises expanding in northern Ohio, often with conservative support – both are discussed in important work by the scholar Gar Alperovitz.

Some might even use the term “capitalism” to refer to the industrial democracy advocated by John Dewey, America’s leading social philosopher, in the late 19th century and early 20th century.

Dewey called for workers to be “masters of their own industrial fate” and for all institutions to be brought under public control, including the means of production, exchange, publicity, transportation and communication. Short of this, Dewey argued, politics will remain “the shadow cast on society by big business.”

The truncated democracy that Dewey condemned has been left in tatters in recent years. Now control of government is narrowly concentrated at the peak of the income scale, while the large majority “down below” has been virtually disenfranchised. The current political-economic system is a form of plutocracy, diverging sharply from democracy, if by that concept we mean political arrangements in which policy is significantly influenced by the public will.

There have been serious debates over the years about whether capitalism is compatible with democracy. If we keep to really existing capitalist democracy – RECD for short – the question is effectively answered: They are radically incompatible.

It seems to me unlikely that civilization can survive RECD and the sharply attenuated democracy that goes along with it. But could functioning democracy make a difference?

Let’s keep to the most critical immediate problem that civilization faces: environmental catastrophe. Policies and public attitudes diverge sharply, as is often the case under RECD. The nature of the gap is examined in several articles in the current issue of Daedalus, the journal of the American Academy of Arts and Sciences.

Researcher Kelly Sims Gallagher finds that “One hundred and nine countries have enacted some form of policy regarding renewable power, and 118 countries have set targets for renewable energy. In contrast, the United States has not adopted any consistent and stable set of policies at the national level to foster the use of renewable energy.”

It is not public opinion that drives American policy off the international spectrum. Quite the opposite. Opinion is much closer to the global norm than the U.S. government’s policies reflect, and much more supportive of actions needed to confront the likely environmental disaster predicted by an overwhelming scientific consensus – and one that’s not too far off; affecting the lives of our grandchildren, very likely.

As Jon A. Krosnick and Bo MacInnis report in Daedalus: “Huge majorities have favored steps by the federal government to reduce the amount of greenhouse gas emissions generated when utilities produce electricity. In 2006, 86 percent of respondents favored requiring utilities, or encouraging them with tax breaks, to reduce the amount of greenhouse gases they emit. Also in that year, 87 percent favored tax breaks for utilities that produce more electricity from water, wind or sunlight. These majorities were maintained between 2006 and 2010 and shrank somewhat after that.

The fact that the public is influenced by science is deeply troubling to those who dominate the economy and state policy.

One current illustration of their concern is the “Environmental Literacy Improvement Act” proposed to state legislatures by ALEC, the American Legislative Exchange Council, a corporate-funded lobby that designs legislation to serve the needs of the corporate sector and extreme wealth.

The ALEC Act mandates “balanced teaching” of climate science in K-12 classrooms. “Balanced teaching” is a code phrase that refers to teaching climate-change denial, to “balance” mainstream climate science. It is analogous to the “balanced teaching” advocated by creationists to enable the teaching of “creation science” in public schools. Legislation based on ALEC models has already been introduced in several states.

Of course, all of this is dressed up in rhetoric about teaching critical thinking – a fine idea, no doubt, but it’s easy to think up far better examples than an issue that threatens our survival and has been selected because of its importance in terms of corporate profits.

Media reports commonly present a controversy between two sides on climate change.

One side consists of the overwhelming majority of scientists, the world’s major national academies of science, the professional science journals and the Intergovernmental Panel on Climate Change.

They agree that global warming is taking place, that there is a substantial human component, that the situation is serious and perhaps dire, and that very soon, maybe within decades, the world might reach a tipping point where the process will escalate sharply and will be irreversible, with severe social and economic effects. It is rare to find such consensus on complex scientific issues.

The other side consists of skeptics, including a few respected scientists who caution that much is unknown – which means that things might not be as bad as thought, or they might be worse.

Omitted from the contrived debate is a much larger group of skeptics: highly regarded climate scientists who see the IPCC’s regular reports as much too conservative. And these scientists have repeatedly been proven correct, unfortunately.

The propaganda campaign has apparently had some effect on U.S. public opinion, which is more skeptical than the global norm. But the effect is not significant enough to satisfy the masters. That is presumably why sectors of the corporate world are launching their attack on the educational system, in an effort to counter the public’s dangerous tendency to pay attention to the conclusions of scientific research.

At the Republican National Committee’s Winter Meeting a few weeks ago, Louisiana Gov. Bobby Jindal warned the leadership that “We must stop being the stupid party. We must stop insulting the intelligence of voters.”

Within the RECD system it is of extreme importance that we become the stupid nation, not misled by science and rationality, in the interests of the short-term gains of the masters of the economy and political system, and damn the consequences.

These commitments are deeply rooted in the fundamentalist market doctrines that are preached within RECD, though observed in a highly selective manner, so as to sustain a powerful state that serves wealth and power.

The official doctrines suffer from a number of familiar “market inefficiencies,” among them the failure to take into account the effects on others in market transactions. The consequences of these “externalities” can be substantial. The current financial crisis is an illustration. It is partly traceable to the major banks and investment firms’ ignoring “systemic risk” – the possibility that the whole system would collapse – when they undertook risky transactions.

Environmental catastrophe is far more serious: The externality that is being ignored is the fate of the species. And there is nowhere to run, cap in hand, for a bailout.

In future, historians (if there are any) will look back on this curious spectacle taking shape in the early 21st century. For the first time in human history, humans are facing the significant prospect of severe calamity as a result of their actions – actions that are battering our prospects of decent survival.

Those historians will observe that the richest and most powerful country in history, which enjoys incomparable advantages, is leading the effort to intensify the likely disaster. Leading the effort to preserve conditions in which our immediate descendants might have a decent life are the so-called “primitive” societies: First Nations, tribal, indigenous, aboriginal.

The countries with large and influential indigenous populations are well in the lead in seeking to preserve the planet. The countries that have driven indigenous populations to extinction or extreme marginalization are racing toward destruction.

Thus Ecuador, with its large indigenous population, is seeking aid from the rich countries to allow it to keep its substantial oil reserves underground, where they should be.

Meanwhile the U.S. and Canada are seeking to burn fossil fuels, including the extremely dangerous Canadian tar sands, and to do so as quickly and fully as possible, while they hail the wonders of a century of (largely meaningless) energy independence without a side glance at what the world might look like after this extravagant commitment to self-destruction.

This observation generalizes: Throughout the world, indigenous societies are struggling to protect what they sometimes call “the rights of nature,” while the civilized and sophisticated scoff at this silliness.

This is all exactly the opposite of what rationality would predict – unless it is the skewed form of reason that passes through the filter of RECD.

© 2012 Noam Chomsky
(Noam Chomsky’s new book is “Power Systems: Conversations on Global Democratic Uprisings and the New Challenges to U.S. Empire. Conversations with David Barsamian.” Chomsky is emeritus professor of linguistics and philosophy at the Massachusetts Institute of Technology in Cambridge, Mass.)

Revealed: The Transnational Corporate Network That Runs The World.

In Uncategorized on October 21, 2011 at 6:40 pm

The 1318 transnational corporations that form the core of the economy. Superconnected companies are red, very connected companies are yellow. The size of the dot represents revenue (Image: PLoS One)

Oldspeak:”1318 Multinational Corporations control 80% of global operating revenue. Of those 1318 an even smaller network of 147 super-connected corporations; less than 1% of all 43,060 transnational corporations control 40% of global operating revenue. The top 50 are banking and finance corporations. In short: A small International Banking Cartel controls a large majority of the global economic system. They are highly invested in maintaining the current economic network. They’ve bought and paid for political systems worldwide to achieve that end. What does that mean for the billions of people, animals and ecosystems that aren’t linkedin to this highly concentrated network? If recent history is any teacher one understands that this cabal doesn’t represent the interests of the vast majority of people on this planet. Their interest in only enriching themselves, usually at the expense of others. They fashioned as system that makes this anti-social, anti-human behavior acceptable, and emulated as model of ‘success’. This system is clearly unsustainable. It is essentially global fiefdom. The people of the world are beginning to see this.  This cabal will do everything in its power to maintain the current system. It has to change. It’s become clear we can’t rely on the political class to enact change. Real change will only come from the people. If recent event are any indication, change is coming.”

By Andy Coghlan and Debora MacKenzie @ New Scientist:

AS PROTESTS against financial power sweep the world this week, science may have confirmed the protesters’ worst fears. An analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by New Scientist say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

The idea that a few bankers control a large chunk of the global economy might not seem like news to New York’s Occupy Wall Street movement and protesters elsewhere (see photo). But the study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world’s transnational corporations (TNCs).

“Reality is so complex, we must move away from dogma, whether it’s conspiracy theories or free-market,” says James Glattfelder. “Our analysis is reality-based.”

Previous studies have found that a few TNCs own large chunks of the world’s economy, but they included only a limited number of companies and omitted indirect ownerships, so could not say how this affected the global economy – whether it made it more or less stable, for instance.

The Zurich team can. From Orbis 2007, a database listing 37 million companies and investors worldwide, they pulled out all 43,060 TNCs and the share ownerships linking them. Then they constructed a model of which companies controlled others through shareholding networks, coupled with each company’s operating revenues, to map the structure of economic power.

The work, to be published in PloS One, revealed a core of 1318 companies with interlocking ownerships (see image). Each of the 1318 had ties to two or more other companies, and on average they were connected to 20. What’s more, although they represented 20 per cent of global operating revenues, the 1318 appeared to collectively own through their shares the majority of the world’s large blue chip and manufacturing firms – the “real” economy – representing a further 60 per cent of global revenues.

When the team further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network. “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions. The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

John Driffill of the University of London, a macroeconomics expert, says the value of the analysis is not just to see if a small number of people controls the global economy, but rather its insights into economic stability.

Concentration of power is not good or bad in itself, says the Zurich team, but the core’s tight interconnections could be. As the world learned in 2008, such networks are unstable. “If one [company] suffers distress,” says Glattfelder, “this propagates.”

“It’s disconcerting to see how connected things really are,” agrees George Sugihara of the Scripps Institution of Oceanography in La Jolla, California, a complex systems expert who has advised Deutsche Bank.

Yaneer Bar-Yam, head of the New England Complex Systems Institute (NECSI), warns that the analysis assumes ownership equates to control, which is not always true. Most company shares are held by fund managers who may or may not control what the companies they part-own actually do. The impact of this on the system’s behaviour, he says, requires more analysis.

Crucially, by identifying the architecture of global economic power, the analysis could help make it more stable. By finding the vulnerable aspects of the system, economists can suggest measures to prevent future collapses spreading through the entire economy. Glattfelder says we may need global anti-trust rules, which now exist only at national level, to limit over-connection among TNCs. Bar-Yam says the analysis suggests one possible solution: firms should be taxed for excess interconnectivity to discourage this risk.

One thing won’t chime with some of the protesters’ claims: the super-entity is unlikely to be the intentional result of a conspiracy to rule the world. “Such structures are common in nature,” says Sugihara.

Newcomers to any network connect preferentially to highly connected members. TNCs buy shares in each other for business reasons, not for world domination. If connectedness clusters, so does wealth, says Dan Braha of NECSI: in similar models, money flows towards the most highly connected members. The Zurich study, says Sugihara, “is strong evidence that simple rules governing TNCs give rise spontaneously to highly connected groups”. Or as Braha puts it: “The Occupy Wall Street claim that 1 per cent of people have most of the wealth reflects a logical phase of the self-organising economy.”

So, the super-entity may not result from conspiracy. The real question, says the Zurich team, is whether it can exert concerted political power. Driffill feels 147 is too many to sustain collusion. Braha suspects they will compete in the market but act together on common interests. Resisting changes to the network structure may be one such common interest.

The top 50 of the 147 superconnected companies

1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc
21. Morgan Stanley
22. Mitsubishi UFJ Financial Group Inc
23. Northern Trust Corporation
24. Société Générale
25. Bank of America Corporation
26. Lloyds TSB Group plc
27. Invesco plc
28. Allianz SE 29. TIAA
30. Old Mutual Public Limited Company
31. Aviva plc
32. Schroders plc
33. Dodge & Cox
34. Lehman Brothers Holdings Inc*
35. Sun Life Financial Inc
36. Standard Life plc
37. CNCE
38. Nomura Holdings Inc
39. The Depository Trust Company
40. Massachusetts Mutual Life Insurance
41. ING Groep NV
42. Brandes Investment Partners LP
43. Unicredito Italiano SPA
44. Deposit Insurance Corporation of Japan
45. Vereniging Aegon
46. BNP Paribas
47. Affiliated Managers Group Inc
48. Resona Holdings Inc
49. Capital Group International Inc
50. China Petrochemical Group Company

* Lehman still existed in the 2007 dataset used