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

Posts Tagged ‘Supra-National Organizations’

BP Energy Outlook: Carbon Emissions “Will Increase 29% By 2035; Remain Well Above Path Recommended By Scientists”

In Uncategorized on February 12, 2014 at 12:12 pm

Climate scientists agree that global carbon dioxide emissions need to be sharply cut. A prominent player in the energy industry predicts they will go in the opposite direction. -Alex Kirby

Oldspeak: “Translation = We’re fucked. This report matters more than anything any government official has to say about energy policy. Supra-national energy corporations basically control global energy policy. Some small nations have managed to greatly diminish their dependence on fossil fuels, but the major emitters (China, U.S., India, Russia, Japan) have no such plans.  There is a high probability that most remaining fossil fuel deposits will be extracted, no matter the impact on the ecology. Witness the battle to “carve up” the arctic by those very same major emitters. In these peoples unwell minds, the melting of the planets’ air conditioner, the arctic, is a good thing. The BP emissions estimate is probably underestimated, as they’ve not factored continued increasing release in methane hydrates from permafrost and the sea floor in their models….  A.K.A. We’re fucked. Tick, Tick, Tick, Tick…” -OSJ

By Alex Kirby @ Climate News Network:

LONDON, 7 February – The good news, from the climate’s standpoint, is that while global demand for energy is continuing to grow, the growth is slowing. The bad news is that one energy giant predicts global carbon dioxide emissions will probably rise by almost a third in the next 20 years.

The Intergovernmental Panel on Climate Change says greenhouse gas emissions need to peak by 2020 and then decline if the world is to hope to avoid global average temperatures rising by more than 2°C over pre-industrial levels. Beyond 2°C, it says, climate change could become dangerously unmanageable.

But BP’s Energy Outlook 2035 says CO2 emissions are likely to increase by 29% in the next two decades because of growing energy demand from the developing world.

It says “energy use in the advanced economies of North America, Europe and Asia as a group is expected to grow only very slowly – and begin to decline in the later years of the forecast period”.

But by 2035 energy use in the non-OECD economies is expected to be 69% higher than in 2012. In comparison use in the OECD will have grown by only 5%, and actually to have fallen after 2030, even with continued economic growth. The Outlook predicts that global energy consumption will rise by 41% from 2012 to 2035, compared with 30% over the last ten.

Nor does it offer much hope that the use of novel energy sources will help to cut emissions. It says: “Shale gas is the fastest-growing source of supply (6.5% p.a.), providing nearly half of the growth in global gas.”

Renewables shine

Burning gas produces much lower CO2 emissions than using coal, but the sheer volume of shale production is expected to cancel out any possible emissions reductions. In fact the Outlook says of its predictions:  “…emissions [of CO2] remain well above the path recommended by scientists…Global emissions in 2035 are nearly double the 1990 level.”

An advantage claimed by some supporters of shale gas is that it will increasingly replace a much more polluting fossil fuel, coal. But at the moment many coal-producing countries are finding markets overseas for those they have lost to shale gas at home.

Oil, natural gas and coal are each expected to make up around 27% of the total mix by 2035, with the remaining share coming from nuclear, hydroelectricity and renewables. Among fossil fuels gas, conventional as well as shale, is growing fastest and is increasingly being used as a cleaner alternative to coal.

Bob Dudley, BP Group chief executive, said the Group was “optimistic for the world’s energy future”. Europe, China and India would become more dependent on imports, he said, while the US was on course to become self-sufficient in energy.

The Outlook does provide encouragement to the producers of renewables, which are expected to continue to be the fastest growing class of energy, gaining market share from a small base as they rise at an average of 6.4% a year to 2035. – Climate News Network

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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.”

Can You Feel It? People are Getting More Tense As Anti-Human New Political Order Takes Shape

In Uncategorized on August 23, 2013 at 8:13 pm

Oldspeak:” As the loss of economic and political right increases, the population is getting spooked. The feeling I have is that of heightened generalized tension, the social/political equivalent of the sort of disturbance that animals detect in advance of earthquakes or volcanic eruptions, of pressure building up along major fault lines. The other way to articulate this vibe is that it is as if events are being influenced by a large unseen gravitational or magnetic force, as if a black hole had moved into the ‘hood. We can’t see the hidden superdense object, but we can infer that it’s distorting the space around it. -Yves Smith

“Happy to know that i’m not the only one… Feel this in the air every day walking the streets of New York. Anxiety, fear, tension, distortion, ignoring, frustration, hurriedness, anger, dysfunction… Really overwhelming at times. When you recognize that climate change increases violence, one can’t help but to anticipate dark days ahead. Watched a documentary today called “Wake Up” where they interviewed scientists who documented evidence of a global integrated supra-consciousness. And how the heightening of that consciousness makes a bunch of random number generators stationed around the planet stop generating random numbers and start generating coherent patterns. How it changes the magnetic field of the earth before major global events. Non-local consciousness.  i think we all intuitively and inter-connectedly know something bad is coming. The signs get harder and harder to ignore. Wages for the poorest are falling or stagnant, while the wages of the richest rise. People are beginning to resist the anti-human laws and policies being imposed on them. Witness the recent strikes by Wal-Mart and fast food workers. The prison strike in Pelican Bay in solidarity with prisoners in Palestine. The people know. There is a disturbance in the force…” –OSJ

By Yves Smith @ Naked Capitalism:

Perhaps I’m just having a bad month, but I wonder if other readers sense what I’m detecting. I fancy if someone did a Google frequency search on the right terms, they might pick up tangible indicators of what I’m sensing (as in I’m also a believer that what people attribute to gut feeling is actually pattern recognition).

The feeling I have is that of heightened generalized tension, the social/political equivalent of the sort of disturbance that animals detect in advance of earthquakes or volcanic eruptions, of pressure building up along major fault lines. The other way to articulate this vibe is that it is as if events are being influenced by a large unseen gravitational or magnetic force, as if a black hole had moved into the ‘hood. We can’t see the hidden superdense object, but we can infer that it’s distorting the space around it.

Now if you just want to go with the “maybe this is just your neurosis” view, we are in the midst of a counterrevolution, and it’s not exactly cheery to be watching its progress on a daily basis.

It isn’t just that the economic rights for ordinary workers and the social safety nets of the New Deal and the earlier labor movements here and abroad are being demolished. Major elements of a broad social and political architecture that served as the foundation for the Industrial Revolution are being torn apart: the Statute of Fraud (essential to give people of every level of society decent protection of property rights) and access to legal remedies; basic protection of personal rights (habeas corpus, due process, protection against unlawful search and seizure); local policing (as in policing being accountable to local governments). Decent quality public education and the freedom of the press are also under assault. People here have used various terms for this new political order that is being put in place; neofeudalism works as well as any, but it looks intended to dial the clock back on many economic and civil rights of ordinary people, not back to the Gilded Age, but to before the French and American Revolutions.

The sense of heightened tension isn’t that this program is underway, or the recent phases have moved rapidly (that’s bad enough) but that ordinary people are increasingly aware of it, and the folks behind it didn’t want to be caught out at this delicate stage. Imagine if you were executing a coup and got exposed, before you had seized all the critical installations you needed to capture for your victory to be complete.

The collective awareness of the degree of loss of economic and political rights we had all taken for granted, has risen considerably as a result of the Snowden/Greenwald/Poitras revelations. If you haven’t read it yet, the fact that the New York Times ran a favorable Sunday magazine cover story on Laura Poitras [3] (in striking contrast to its earlier hatchet job on Glenn Greenwald) and discussed in some detail how routine communication on the web are simply not secure and depicted the considerable measures Snowden, Greenwald, and Poitras have had to take (and by implication, ordinary people ought to be taking) is an indicator of the fault lines among the elites. A story like that (a story! not My Eyes Glaze Over reports on what sorts of surveillance might or might not be permissible under various programs most American can’t bother to keep track of) brings home in a visceral way how far Big Brother has gone to a large national audience. As Atlantic put it [4]:

The New York Times Magazine cover story by Peter Maass [3] detailing how Edward Snowden reached out to the two reporters that broke the NSA surveillance story isn’t about that surveillance. It’s only sort of about journalism. Instead, it’s largely a story about how close to the boundaries of civilization you must get — literally and figuratively — to be assured that you can protect your privacy. And it’s about how the United States government pushes people there.

But notice the Atlantic played it chicken by calling Poitras “paranoid” in its headline. If you read the abuse Poitras’ suffered when she would return to the US [5], including having her equipment repeatedly seized and the data searched, “paranoid” is the last word you’d use. “Prudent” is more like it.

And we have the drip drip drip of ongoing revelations such as XKeyscore, “mistaken” surveillance of thousands of ordinary Americans (and you can bet a lot more is dressed up as legit), CIA surveillance of Aaron Swartz and Noam Chomsky (Chomsky? Surveilling an academic successfully relegated to the “so left he’s irrelevant” ghetto? If he’s treated as a threat, the threat threshold is awfully low).

Now as a netizen, as well as someone who has been following the Big Brother story reasonably closely, I could be charged with overreacting to that. But Obama is losing his famous cool. It may simply be an coincidence of timing (as in he’s fighting his inevitable slide into lame duck status and none too happy about that) but he’s been visibly heavy handed of late. This is just off the top of my head:

Derailing Grayson’s session with Greenwald (which will go ahead in September, so what sort of victory was it to push it into a busier news period?)

Getting snippy in that Democratic caucus meeting when asked about Larry Summers and later calling senators who opposed Summers to his office to tell them to lay off

Launching a Big Lie speaking tour on how he’s creating middle class jobs (which seems to be landing like a lead balloon)

Launching a faux independent surveillance investigation (as I’ve said before, having Clapper on the committee is tantamount to saying, “So what are you going to do? Impeach me?”)

A bizarre flurry of “look, over there, an airplane” of actions that garner positive headlines. Mind you, this is standard operating procedure…except that there’s been a weird flurry in August, when most of them could have been held back to September: the London Whale prosecutions. Opposing the AMR-US Air merger. The announcement of an investigation into the use of antipsychotics on children [6].

Shorter: Obama looks off balance.

And we’ve got a whole ‘nother front opening up, that of municipal bankruptcies and restructurings, which puts the war against municipal workers and unions back in the headlines and creates another looting opportunity for Wall Street, in the form of privatizations. Ugh.

Or maybe the inchoate sense of pressure is real, but I’m looking in the wrong place for explanations. A newly-published study ascertained that climate change increases violence [7]. And we also have that long-standing Roubini call that 2013 will see a new outbreak of crisis, and winter October is coming.

So readers: do you have a similar sense of a collective rise in pressure, or tangible signs of disturbance among what passes for our elites? Or is this just me trying to draw a trend line through a random set of data?

Colonized by Corporations: Corporations Are Colonizing Us With “Free Trade Agreements” – & Wall Street Wants In

In Uncategorized on June 19, 2013 at 8:12 pm

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Oldspeak: NAFTA, CAFTA, TPP, and on the horizon, the “Trans Atlantic Free Trade Agreement” or TAFTA, for short. Catchy acronyms are always a bad sign. The USA Patriot Act that essentially shredded the bill of rights  immediately comes to mind. This latest iteration of the Transnational Corporate Network’s stealth supra-government takeover of the global commons will serve to further degrade flesh and blood citizens’ rights while expanding rights of our newly minted corporate citizens to  “allow most food safety standards, financial stability measures and environmental protections to be dismantled in the name of reducing “barriers” –Ben BeachyThis ‘deal’ is shaping up to be just another vehicle for the largest U.S. and EU corporations to sneak in provisions they cannot enact through open democratic processes and leave citizens exposed to another financial crisis, unsafe foods and severe burdens on Internet freedom and innovation.” –Lori Wallach The colonizers are now colonizing their own populations.  Resist Neo-Colonialism.  Rebel. Protest.  Before the takeover is complete.”

By Richard Eskow @ Campaign For America’s Future:

After 237 years, we’re becoming a colony again. Our nation’s losing the right to self-determination it fought so hard to win, and it’s happening on a scale unseen since the days of George III.

As is so often the case these days, this wholesale loss of our rights is being underwritten by corporate interests.

And, as usual, it’s being called “bipartisan” – by corporations who “buy” both Republican and Democratic “partisans.”

Terms of Surrender

Republicans cheered George W. Bush for saying, “I will never place U.S. troops under U.N. command.” Democrats cheered Barack Obama for saying, “I want us to control our own energy destiny.”

But both leaders pushed trade agreements that surrender our sovereign rights to faceless bureaucrats in international bodies – bodies that are dominated by multinational corporations.

Where are those cheering crowds now? Republicans backed a president who supported a agreements which put Americans’ rights – and their environment – “under the command” of foreign bodies.  And unless something changes Democratic voters will soon see their president give up even more control of our economic destiny.

WTO Stands For “We’re Taking Over”

Public Citizen, which has been doing excellent work on this issue, reports on three U.S. laws that were nullified by the World Trade Organization (WTO):  country-of-origin labels on meat, dolphin-safe labels on tuna, and the ban on sweet-flavored cigarettes designed to get kids addicted to the tobacco companies’ carcinogenic products. (What’s next:  Cherry-flavored crack?)

The WTO and the WTO “Appellate Body” – two bodies most Americans don’t even know exist – overruled these laws in a preemptory manner that would have outraged the Continental Congress.

We didn’t elect them. We can’t communicate with them. But they’ve issued three decrees which we must obey:

1) We are not to know where the meat we’re eating comes from.

2) We must accept the fact that we may unknowingly wind up eating the flesh of dolphins, arguably the most intelligent nonhuman species on the planet. And,

3) We must continue to allow the distribution of products designed to addict our children to a deadly and habit-forming substance.

How’s that for “controlling our own destiny”?

The Next Front

The next stage of our war for economic independence is being determined in trade talks that are being conducted in deep secrecy by a president who once promised “the most transparent administration in history.”

Laurel Sutherlin calls the Trans-Pacific Partnership “a worldwide corporate power grab of enormous proportions,” and that pretty accurately sums it up. (It’s hard to write about these deals without sounding hyperbolic, even if you’re only being descriptive.) As Sutherlin points out, the TPP “is among the largest and potentially most important ‘free trade’ agreements the world has ever seen …”

And yet, as Sutherlin notes, “one can hardly be blamed for not being familiar with it yet. The corporate cabal behind it … has done an exceptional job of maintaining an almost total lack of transparency as they literally design the future we will all inhabit.”

Although 600 corporate representatives have seen drafts of the agreement, access has been denied to even high-ranking members of Congress. Dave Johnson excerpts some provisions being considered in the secret talks, and they’re truly terrifying.

In fact, as Lori Wallach and Ben Beachy point out in a must-read editorial, the treaty’s provisions are so unpopular that the last negotiator felt it could only be concluded in secret. And now sovereignty-killing provisions are being considered for a trade agreement with member nations of the European Union.

Wall Street Wants a Piece

Now Wall Street’s trying to use these draft agreements to undermine our ability to protect ourselves from bank predation or another financial crisis. They’ve already tried to use the WTO’s archaic and destructive financial rules (Americans for Financial Reform has the details). Now Bloomberg News reports that banks and insurance companies are trying to use new proposed trade deals to overrule or further dilute portions of the Dodd-Frank Act.

That legislation was weakened by bipartisan negotiation, and a number of agencies have “slow-walked” its implementation by delaying the completion of draft regulations. But that’s not enough for trade groups like the U.S. Chamber of Commerce, the Coalition of Service Industries, and the Securities Industry and Financial Markets Association (SIFMA).

They see this as an opportunity to unleash their member companies, corporations with names like Citi and AIG, to plunder and pillage – we mean, “unleash the innovative creativity of the financial sector” once again.

Easily Confused

They don’t say that, of course.  One of their favorite gambits is to say that it’s too “confusing” to deal with different countries’ rules.  A group of compliant House Republicans, for example, recently wrote to complain that “the regulatory landscape (is) too difficult for financial firms to navigate.”

Imagine.  The five largest banks in America earned more than $20 billion in the first quarter of this year alone and still can’t figure out how to “navigate” regulations. But here’s a funny thing: They don’t always want the same rules as other countries. Nobody on Wall Street mentioned “an easier landscape” when the EU set limits on bankers’ bonuses, for example.

They don’t want a “common” set of rules. They want the “lowest common denominator” of rulemaking, established by international, corporate-controlled bodies accountable to no one.

Freedom Ain’t Free

There have been some heroes in this fight. The organizations cited above have done excellent work. Massachusetts Sen. Elizabeth Warren has been speaking out forcefully. So has Florida Rep. Alan Grayson, who has started a petition against the proposed inclusion of WTO-like oversight bodies in the new European trade agreement.

But President Obama, like presidents Bush and Clinton before him, appears to be on the wrong side of this fight. He needs to hear from voters who insist on transparent talks and a return to full American sovereignty.

Senators and representatives need to get those emails and calls, too. Better make your voice heard quickly, while your vote still matters.

“As Nation-States Falter, Capitalism Shines”

In Uncategorized on June 9, 2013 at 5:39 pm

https://i1.wp.com/gerrardpanahon.com/wp-content/uploads/anti-corporate-personhood-i13.jpgOldspeak: ” It’s not a question of enough, pal. It’s a Zero Sum game – somebody wins, somebody loses. Money itself isn’t lost or made, it’s simply transferred – from one perception to another. Like magic. This painting here? I bought it ten years ago for sixty thousand dollars. I could sell it today for six hundred. The illusion has become real, and the more real it becomes, the more desperately they want it. Capitalism at its finest.” –Gordon Gekko, in “Wall Street

‘The point to be made is this: Capitalism’s prime beneficiaries now control every aspect of economic power from political office to the tax code as well as unhindered blatant avoidance of taxes. As it follows, individual citizens of the nation states are left holding the bag and nation states are going broke. How long can this continue? The answer is: As long as nation-states can manage to carry more, and more, and more, and more debt, but Greece has already demonstrated a day of reckoning lurks around the corner… unless the trend of transnational omnipotence, which is capitalism on steroids, is broken, it is probable that the legacy nation-states, like the U.S., will continue to limp along into an ever-deeper pit of indebtedness as social services are slowly disassembled. This trend is accentuated by continuing weak economic behavior within the nation-state, but paradoxically, and regardless, capitalism thrives and shines!” –Robert Hunziker

“The Supra-national control grid continues to take shape. Fear mongering and the illusions of  “safety” and “security” have brought us to this damnable point.  Increased structural violence. Decreased empathy. Societal atomization. Runaway inequality. Perpetual war. Hyper-consumption. Constant surveillance of electronic communications and activities. Privatization of the commons. Cutting of social and public services. Exploding debt. Increasingly militarized and brutalizing “law enforcement” for the smallest infractions among  proles, and little to none for the titanic crimes of those in the  inner party. Dumbed down education. Fewer rights for the proles. The planned bankruptcies and liquidations of nation-states are in progress. With the elites continued secret negotiations of “trade agreements” like the Trans-Pacific Partnership, rendering nation states powerless to hold corporations accountable when they repeatedly and flagrantly violate laws, standards and protections, while giving corporations the power to sue nation states for having their laws, standards and protections which cost them “lost profits”, it seems that the transnational corporate networks’ omnipotence is growing  every day. It is the nature of vampire capitalism. Drain the victim to within an inch of it’s life, but keep it alive enough to keep feeding on indefinitely. Extract indefinitely. “Externalities” be damned. Greed fueled capitalists don’t know the meaning of the word “enough”. “More” is their perpetual objective. There’s only one way that story ends on a diseased & dying planet with only so much blood to extract. Bad. How long will citizens hold the bag?”

By Robert Hunziker @ Dissident Voice:

The world has been ruled by nation-states throughout modern history, ever since kings and queens were put out to pasture, but nation-states may be on the brink of extinction, similar to monarchies over the past 50-200 years.

Nation-states are not meeting the basic needs and requirements of the people, and, in particular, the legacy nation-states are bleeding through the gills. They’re taking on historic levels of debt while prospectively cutting social services wherever possible. This is a prescription for failure. The main problem is a shortage of revenues for the treasury.

But, capitalism, embodied within transnational corporations, does not require upbeat nation-states to thrive. They’re doing beautifully regardless of the drag of some of the world’s biggest countries. Worldwide, several major stock markets have recently set new records; meanwhile, nation-states sustain abnormally high unemployment levels and badly deteriorating finances. The contrast between the two is breathtaking. For example, the Eurozone unemployment rate is now over 12%; meanwhile, the major European bourses have recorded new highs over the past month.

It’s all about power and money. As such, “capitalism,” which is a nickname for global corporate interests, has all of the power and the money. For example, Apple has enough cash on hand to eliminate Cyprus’s debt with plenty of change left over. And, just the five largest NASDAQ high tech listed companies have combined revenues equal to the 30th largest country (Venezuela) in the world. Moreover, corporate balance sheets make most of the world’s leading countries look like financial dolts.

In point of fact, society is witnessing one of the biggest socio-economic disruptions in history as capitalism, consisting of transnational entities, overwhelms, and cripples, the capabilities of nation-states to function.

The inchoate corporate state is a reality, and it knows no borders or allegiances beyond other corporate interests. This is transnationalism at work, and it is feverishly conquering the planet, pushing aside weakened nation-states, which are powerless in the face of rampant, unchecked capitalism.

Twenty years ago, Gus Tyler (1911-2011), the ubiquitous radio commentator and author, conjectured as follows: “The rise of transnational companies has undermined a nation’s ability to manage its private economy. How can national political institutions cope with a global economy that dissolves national boundaries?”1

And, furthering his point, Tyler quoted Keynes, circa 1930: “The outstanding faults of the economic society in which we live is its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes.”

It now appears both Keynes’ and Tyler’s forebodings were on the mark. Although, they would likely be surprised by how emphatically their words are ringing true as capitalism’s transnationalistic rise to power is unrivaled. In this pursuit of unrivaled power and influence, corporate interests unabashedly toss high-priced labor into the dustbin of nation-state unemployment rolls in favor or low wage/low regulatory jurisdictions even as these same transnational corporations shirk their responsibilities of paying a fair share of the obligations of the nation-states. And, they get away with it!

For example, Google’s UK subsidiary may have sales of over $3 billion in the UK, but they only pay the UK $6 million in corporate taxes, or 0.002%, somewhat similar to Amazon, Starbucks, and the list goes on. Major multinational corporations sell products in high tax counties but book the same sales in low tax countries.

According to Google’s Executive Chairman Eric Schmidt, “I don’t think companies should decide what tax policies should be. I think governments should… All of us are operating in a very, very longstanding tax regime that was set up for various reasons that don’t necessarily make sense to me or anyone else. But they are the way the global tax regime works.”2

In short, everybody else is doing it, so why not Google?

And, isn’t Mr. Schmidt really stretching the credibility quotient when he states tax policy doesn’t make sense to “me or anyone else.”

The “longstanding tax regime,” referenced by Mr. Schmidt, is all about who has power over the purse. More precisely, the “long-standing tax regime” is the result of supply-side economic theory and globalization embraced by politicians who are beholden to global corporate interests. Over the past 40 years, corporate interests lobbied and supported political operatives to pass the very regulations, and loopholes, criticized by Mr. Schmidt. As it goes, Mr. Schmidt’s statement is an example of the fox lambasting the fox in the henhouse.

Recently, Robert Reich, Chancellor’s Professor of Public Policy, University of California at Berkeley elegantly summarized the issue, as follows: “As global capital becomes ever more powerful, giant corporations are holding governments and citizens up for ransom – eliciting subsidies and tax breaks from countries concerned about their nation’s ‘competitiveness’ – while sheltering their profits in the lowest-tax jurisdictions they can find.”3

As it goes, “who pays how much” to the U.S. federal government tells a big story: According to the U.S. Budget Office, “Tax Receipts By Source As Percentages of GDP: 1934-2015,” since 1950 and up to, and including, 2010: Individual tax payer contributions to the U.S. Treasury as a percentage of the country’s Gross Domestic Product (“GDP”) have rocketed upwards by 60% while corporate tax payments as a percentage of GDP, over the same time frame, have plummeted by 70%.

All the same, if a corporate CEO is confronted with this fact, he/she will explain how the top corporate tax rate is 35%, the same as individuals, but they omit to say that average individual taxpayers cannot conveniently move assets offshore to avoid taxes altogether (although, as for the wealthy, Mitt Romney, who has numerous offshore accounts nestled in prototypical tax havens, proved otherwise, and everybody knows he only pays a tax rate of 15% on the portion of his income that he ‘declares’ for taxes), and individual taxpayers, compared to multinationals, cannot declare taxes in low tax jurisdictions outside of the country where their income originates. This is the domain for corporation interests, not individuals.

Additionally, corporate interests have discovered fascinating ploys whereby corporate officers are enriched at the expense of all individual taxpayers. Here’s how it works, as only one example of many other tax dodges: The companies pay top executives a hefty amount in “stock options,” for which the tax code allows corporations to deduct the appreciated value of the stock. This means corporations eliminate some taxes by enriching executives. This is a win-win for corporations and their officers, and it is a lose-lose for individual taxpayers and the U.S. Treasury.

Indeed, this tinkering with the tax code provides a skillful and surreptitious methodology for grossly rich corporate executives to make tons more money, and allegedly, the “trickle down theory” claims they will invest these funds to create more jobs. This supply-side theory has worked wonders these past several years… correct?

The point to be made is this: Capitalism’s prime beneficiaries now control every aspect of economic power from political office to the tax code as well as unhindered blatant avoidance of taxes. As it follows, individual citizens of the nation states are left holding the bag and nation states are going broke. How long can this continue? The answer is: As long as nation-states can manage to carry more, and more, and more, and more debt, but Greece has already demonstrated a day of reckoning lurks around the corner.

Is it possible that one of the big time legacy nation-states might be next?

Japan: Case Study of a failing Nation-State

Japan, the world’s third largest economy, is a dead ringer for economic free-fall, but nobody knows for sure when it will happen. Japan’s government debt/GDP is double Greece’s.

Japan’s debt level is approximately 25 times tax revenue. Japan’s tax revenues are 43 trillion Yen (¥) of which 10 trillion ¥ pays for annual interest on outstanding debt. And, this inordinate complexity is with interest rates below one percent (1%). Imagine what will happen to Japan’s interest expenses when rates go up!

Furthermore, the country’s tax revenues are 43 trillion ¥, but they spend 102 trillion ¥, more than double tax collections. It is no wonder the country has had 10 finance ministers over the past 5 years!

As a result, large Japanese corporations are acquiring or merging businesses outside of Japan, and in typical transnational fashion, they’re looking to get out while the getting is good.

One respected U.S. economic newsletter says of Japan’s economic situation: “It’s a bug in search of a windshield.”

Market economies historically implode when public debt levels exceed five-to-seven times tax revenues for an extended period of time. In Japan’s case, their debt level is more than one quadrillion ¥ or a ‘billion billion’ ¥, which represents twenty-five times revenues of 43 trillion ¥. Along these lines, the ‘bug’ analogy is more than fitting.

Transnationalism Reigns Supreme

In turn, some Japanese multinationals are exiting stage left in order not to get caught in Japan’s continual deflationary anti-bubble. “So far this year, Japanese firms have made more than $52.5 billion in global acquisitions, compared with $34.34 billion in all of 2010. Overall, Japanese companies are the second-largest acquirers in the world this year… according to Dealogic, a deal-tracking firm… It’s a trend that analysts expect to continue, and possible accelerate, as Japanese companies diversify their operations away from Japan’s stagnant economy….”4

Meanwhile, as a short-term preventative measure, and grasping for straws whilst in a quiescent panic mode, the government of Prime Minister Shinzo Abe has opened up the monetary spigots like Niagara Falls during the high season. This rapid devaluation of the yen, i.e., printing money like its going out of style, reminiscent of 1920s Germany, is jacking up Japan, Inc.’s worldwide competitiveness over the short term, as Japanese goods become cheaper versus the world because of intentional devaluation of the yen, but this damages economic interests with other countries, including the U.S., not to mention negative consequences for Japan down the line.

As an example, Toyota will book an extra 35 billion ¥, or 352 million USD, for every one Yen devaluation against the dollar. Regardless, Toyota announced plans to start building Lexus sedans in Kentucky as part of its plan to “become free of currency risk.” Hence, even though Toyota appreciates the short-term pop in earnings because of a rapidly depreciating yen, they continue to move operations offshore.

The Japan-Toyota scenario demonstrates the flexibility of transnationals. They can see a precipice on the horizon even though they do not know how imminently it will arrive. So, on a cautionary note, they move some operations to other countries. But, Japan cannot move the country’s governmental operations, infrastructure, schools, power plants, etc. Along these lines, as transnationals seek greener pastures overseas, Japan increasingly loses its tax base as its aging population over 60 grows to 30% versus a worldwide average of only 8% of the population over 60. To say this is a daunting problem is only too obvious.

At the end of the day, the country of Japan is left with an aging population and enormously high debts. Who’s going to care for the aging society? Not transnationals… they hire overseas workers where operations are relocated. Plus, they adroitly maneuver sales to where taxes are lowest. Thus, and increasingly, nation-states are left with the baggage, i.e., costs of infrastructure, unemployed, and medical expenses for the aging as well as depleting tax bases, meanwhile transnationals move on to new frontiers.

In this fashion, nation-states stagnate whilst multinational corporations thrive because of the flexibility to move wherever taxes and labor costs are most favorable. But, by definition, the legacy nation-states like Japan do not meet the criteria necessary for transnationals looking to move operations into their country because they provide too many costly social services and high wages!

The Trend for Nation-States

Over the past 40 years, with the onset of globalization in combination with transnational interests as dictated by the WTO, NAFTA, the World Bank, the IMF, the EU, the U.S. and other extra-international organizations long-standing policies and tax regimes have become embedded such that many of the policies required to maintain nation-states are flippantly at risk to the whims of transnationals. The complexity behind this favorable arrangement for tansnationals vis-à-vis nation-states is beyond the reach of average voting citizens and beyond the power of nation-states.

As it happens, unless the trend of transnational omnipotence, which is capitalism on steroids, is broken, it is probable that the legacy nation-states, like the U.S., will continue to limp along into an ever-deeper pit of indebtedness as social services are slowly disassembled. This trend is accentuated by continuing weak economic behavior within the nation-state, but paradoxically, and regardless, capitalism thrives and shines!

The upshot of this Gordian knot is destined to result in increasing enforcement via police state tactics while the crumbling apparatuses of nation-states threatens outbreaks of civil disobedience. Then, one has to wonder which frontier transnational elites will conquer next.

As follows, it may be in the best interests of the capital class to avoid this pitfall by calling for a return to an equitable distribution of taxes paid to the treasuries of the nation-states. Otherwise, they may run out of frontiers.

  1. Gus Tyler, The Nation-State vs. the Global Economy, Challenge, March-April, 1993.
  2. Cameron Hails Tax ‘Turning Point’ After Google Criticisms, BBC News, May 22, 2013.
  3. robertreich.org, Global Capital and the Nation State, May 20, 2013.
  4. Kathy Chu, Japanese Companies Look Outside for Expansion Opportunities, USA Today, Sept. 28, 2011. 

Robert Hunziker (MA in economic history at DePaul University, Chicago) is a former hedge fund manager and now a professional independent negotiator for worldwide commodity actual transactions and a freelance writer for progressive publications as well as business journals. He can be contacted at: rlhunziker@gmail.com. Read other articles by Robert.