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Wandering the chaos of the internet today, I came across this other declaration, with which I totally concur.   While it didn’t really begin with 9/11, but had been in the works for some time before, with that event (yet to be meaningfully investigated by genuinely impartial parties), our government commenced a series of serious attacks on the Constitution, with perhaps “The Patriot Act” signalling the first step.  Since then in one “legal” ruling after another the Bill of Rights has been stripped of meaning.  As famously said by Mr Obama’s predecessor, “it’s just a goddamn piece of paper.”

While the circus of the Republican nominee selection process travels the country putting on its dog and pony show, back in DC, in the furious rush to wrap up “business”  before the Christmas break, our wonderful Congressmen and women have hobbled together a fantastic new bill, the annual National Defense Authorization Act – to say “law” – which Barack Obama, our erstwhile scholar of the Constitution, and our erstwhile “liberal” President, had promised to veto if it retained a certain element that had been tacked on in the devious manner of our politicians, a “rider” having to do with giving the Executive the (unconstitutional) right to declare someone “a terrorist” or even someone as being vaguely in some way connected to a claimed “terrorist” and to arrest them, lock them up, hide them, and throw away the key.  American or not, where ever they are.   However, as is his way, Mr Obama did his feint to the left, and now is ready to sign this new bill/law.  And bye-bye to what is left of the Constitution’s “Bill of Rights.”

Mr Obama does what his Harvard Massah’s taught him

Thus goes America’s political world, which, like our financial world, basically engages in a constant shell game, shuffling the cards like the hustler down on the corner.   Just keep ‘em movin’ and no one will notice.  So in short order, with a signature on this piece of typical Nazi-style “law” we will have all the trappings of a real genuine dictatorship.  We have already had the practice, now we just need to formalize it in our “laws.”

Bradley Manning

In the same week as this dubious item, Bradley Manning surfaced from the Federal military detention system where he has been held the last year and a half, often naked, in what might reasonably be called less than “humane” conditions.   He was taken, dressed, before a military tribunal to face whatever music they might wish to inflict for having released reams of governmental “secret” documents, many of which essentially described crimes committed by America’s military, along with many revealing views of those in government.  While complying with the Nuremberg laws which require a citizen to report war crimes and crimes against humanity, which the American government purports to support and follow, Manning ran afoul of higher ups within our governmental system who regarded this a dire threat (which in fact it – the truth – is).   Mr Manning will undergo this kangaroo court “trial” and be put away for decades, no doubt.  In the same week, in Iraq, America did a military about face, at least in theatrical terms, and allegedly ended the war in said country, folding flags and driving military vehicles to next door Kuwait.  The corporate news doesn’t see fit to inform our public how many “private contractors” receiving Federal funds remain in Iraq.   The recipient of Mr Manning’s alleged leak, Julian Assange, of WikiLeaks, is in detention in the UK awaiting a British court’s decision whether he should be extradited to Sweden where two women, who admit to consensual sex with him, filed charges of subsequent rape for having had morning- after sex with them, allegedly without consent or condom.   In the interim, while this wound its way through the UK’s legal system, American corporations – PayPal and others – commenced to refuse to service WikiLeaks’ fund-raising system, drying up its financial capacity to function.

And  in yet this same week, a reporter, American, found a trove of US military documents in Iraq, which had been tossed in the garbage as the troops left.  An Iraqi man was using them as a heating source, burning them.  Some of the documents – 40,000 pages – the reporter obtained detailed “secret” testimony within the US military regarding the Haditha massacre of November 19, 2005.  These documents reveal clear knowledge within the US military of what are certain “war crimes” but which were covered up as well as possible by American authorities.

Haditha, Iraq, Nov 19, 2005

While Pvt Manning is likely to spend the rest of his life in prison for releasing documents which reveal American war crimes, as well as other useful information regarding American practices, the soldiers who committed the Haditha murders have had charges dropped, been acquitted or been left alone.  Sargeant Wuterich, the platoon commander, had his trial postponed until 2012.   Apparently the papers discovered in Iraq last week will be pertinent – they clearly show a perfectly normal attempt by the military to cover up this war crime – one among thousands committed in the name of the United States, commencing with the lies which were used to initiate this war of choice upon a country which had nothing to do with 9/11.  Naturally the perpetrators of those lies will never be prosecuted by America’s courts.

While beautiful, the above image, of a lake in Alaska, is less than lovely in other respects.  By coincidence it was published in the NY Times within the same day as another report, from Russia.   In both cases the substance of the articles was on the scientifically predicted surge of methane gasses which are coming from the warming of the arctic tundra and from undersea sources.   The essential story is that biomass which has been frozen for hundreds of thousands of years is now warming, in effect fermenting, and releasing methane gasses into the atmosphere.  Methane is a potent “greenhouse” gas, functioning to trap solar heat 20 times more effectively than does CO2.   As predicted by many ecological scientists the warming of the arctic region will result in a feed-back loop in which the warming induced by industrial releases of carbon based gasses, will provoke the production of methane, which will hasten global warming, ad infinitum.   The NY Times Andrew Revkin has a less apocalyptic view here.

US troops withdraw to Kuwait from IraqCliffs on MarsDiagram of black gravitational hole in space

POSTSCRIPT

In today’s emails came one from Michael Moore, which I think warrants as much exposure as it can get, so in case you did not get it, I print it below:

Friends,

It’s Saturday night and I didn’t want the day to end before I sent out this note to you.

One year ago today (December 17th), Mohamed Bouazizi, a man who had a simple produce stand in Tunisia, set himself on fire to protest his government’s repression. His singular sacrifice ignited a revolution that toppled Tunisia’s dictator and launched revolts in regimes across the Middle East.

Three months ago today, Occupy Wall Street began with a takeover of New York’s Zuccotti Park. This movement against the greed of corporate America and its banks — and the money that now controls most of our democratic institutions — has quickly spread to hundreds of towns and cities across America. The majority of Americans now agree that a nation where 400 billionaires have more wealth than 160 million Americans combined is not the country they want America to be. The 99% are rising up against the 1% — and now there is no turning back.

Twenty-four years ago today, U.S. Army Spc. Bradley Manning was born. He has now spent 570 days in a military prison without a trial — simply because he allegedly blew the whistle on the illegal and immoral war in Iraq. He exposed what the Pentagon and the Bush administration did in creating this evil and he did so by allegedly leaking documents and footage to Wikileaks. Many of these documents dealt not only with Iraq but with how we prop up dictators around the world and how our corporations exploit the poor on this planet. (There were even cables with crazy stuff on them, like one detailing Bush’s State Department trying to stop a government minister in another country from holding a screening of ‘Fahrenheit 9/11.’)

The Wikileaks trove was a fascinating look into how the United States conducts its business — and clearly those who don’t want the world to know how we do things in places like, say, Tunisia, were not happy with Bradley Manning.

Mohamed Bouazizi was being treated poorly by government officials because all he wanted to do was set up a cart and sell fruit and vegetables on the street. But local police kept harassing him and trying to stop him. He, like most Tunisians, knew how corrupt their government was. But when Wikileaks published cables from the U.S. ambassador in Tunis confirming the corruption — cables that were published just a week or so before Mohamed set himself on fire — well, that was it for the Tunisian people, and all hell broke loose.

People across the world devoured the information Bradley Manning revealed, and it was used by movements in Egypt, Spain, and eventually Occupy Wall Street to bolster what we already thought was true. Except here were the goods — the evidence that was needed to prove it all true. And then a democracy movement spread around the globe so fast and so deep — and in just a year’s time! When anyone asks me, “Who started Occupy Wall Street?” sometimes I say “Goldman Sachs” or “Chase” but mostly I just say, “Bradley Manning.” It was his courageous action that was the tipping point — and it was not surprising when the dictator of Tunisia censored all news of the Wikileaks documents Manning had allegedly supplied. But the internet took Manning’s gift and spread it throughout Tunisia, a young man set himself on fire and the Arab Spring that led eventually to Zuccotti Park has a young, gay soldier in the United States Army to thank.

And that is why I want to honor Bradley Manning on this, his 24th birthday, and ask the millions of you reading this to join with me in demanding his immediate release. He does not deserve the un-American treatment, including cruel solitary confinement, he’s received in over eighteen months of imprisonment. If anything, this young man deserves a friggin’ medal. He did what great Americans have always done — he took a bold stand against injustice and he did it without stopping for a minute to consider the consequences for himself.

The Pentagon and the national security apparatus are hell-bent on setting an example with Bradley Manning. But we as Americans have a right to know what is being done in our name and with our tax dollars. If the government tries to cover up its malfeasance, then it is the duty of each and every one of us, should the situation arise, to drag the truth, kicking and screaming if necessary, into the light of day.

The American flag was lowered in Iraq this past Thursday as our war on them officially came to an end. If anyone should be on trial or in the brig right now, it should be those men who lied to the nation in order to start this war — and in doing so sent nearly 4,500 Americans and hundreds of thousands of Iraqis to their deaths.

But it is not Bush or Rumsfeld or Cheney or Wolfowitz who sit in prison tonight. It is the hero who exposed them. It is Bradley Manning who has lost his freedom and that, in turn, becomes just one more crime being committed in our name.

I know, I know, c’mon Mike — it’s the holiday season, there’s presents to buy and parties to go to! And yes, this really is one of my favorite weeks of the year. But in the spirit of the man whose birth will be celebrated next Sunday, please do something, anything, to help this young man who spends his birthday tonight behind bars. I say, enough. Let him go home and spend Christmas with his family. We’ve done enough violence to the world this decade while claiming to be a country that admires the Prince of Peace. The war is over. And a whole new movement has a lot to thank Bradley Manning for.

Yours,

Michael Moore
MMFlint@MichaelMoore.com

Aside from the roller-coaster ride of the wobbling Euro – up-down-spinning apart – and the other economic news which animates the moment, the Department of Labor released the latest US Employment figures, showing a decided bump downwards in the percentage of unemployed, to 8.6%.   This from the alleged 9% which many observers suggest is something more in the realm of 17% or more.  As usual, these figures are inherently false and falsified deliberately, for political reasons.  It is normal practice that a month later “corrections” are made, usually making the figures a bit less palatable politically speaking.  On the other hand in the NYTimes, Floyd Norris, economics columnist, says of late corrections have been in the other direction, and he spins the figures this way.

The editors in the same paper of record, saw it this (edited) way:

The unemployment rate dropped to 8.6 percent in November from 9 percent in October in the jobs report released Friday. The economy added 120,000 jobs and job growth was revised upward in September and October.

Most of the decline in November’s unemployment rate was not because jobless people found new work. Rather, it is because 315,000 people dropped out of the work force, a reflection of extraordinarily weak demand by employers for new workers.

The job growth numbers also come with caveats. More jobs were created than economists expected, but with the job market so weak for so long, that is a low bar. It would take nearly 11 million new jobs to replace the ones that were lost during the recession and to keep up with the growth in the working-age population in the last four years. To fill that gap would require 275,000 new jobs a month for the next five years. That’s not in the cards. Even with the better-than-expected job growth in the past three months, the economy added only 143,000 jobs on average.

And most of those new jobs are low-end ones. In November, for example, big job-growth areas included retail sales, bartending and temporary services. (Note: Xmas is around the corner, duh.) Teachers and other public employees continued to lose jobs, and job growth in construction and manufacturing were basically flat. Indeed, work — once the pathway to a rising standard of living — has become for many a route to downward mobility. Motoko Rich reported in The Times recently on new research showing that most people who lost their jobs in recent years now make less and have not maintained their lifestyles, with many experiencing what they describe as drastic — and probably irreversible — declines in income.

Against that backdrop, the modest improvement in the jobs report, even if sustained in the months to come, would not be enough to repair the damage from the recession and its slow-growth aftermath. Help is needed, yet Congress is tied in knots over even basic recovery measures, like extending federal unemployment benefits and the temporary payroll tax cut.

The  other shoe falling

This past week saw a concerted effort on the part of so-called “Central Banks,” including The Fed, to make dollars more liquid in the face of the tightening of Euro credit in Europe.  This action was hailed by “the markets” with a one day jump of around 4%.  The next day stocks slumped slightly – a phenomenon that has been repeated many times since 2008.   This process is a mixture of the Central Banks printing more money and giving it to banks are far lower interest rates than they will then loan it for – in effect, free money for the banks.  This functions to keep the usary system working and capitalism humming, if only for another day or week or month.  The cruel truth, which our bankers and their politicians dance around, is that the entire system was “leveraged” into a massive self-serving Ponzi scheme in which those in the financial industry robbed the banks, and left the empty bag in the public’s hand.   In doing so it has toppled several governments – Greece and Italy – which in turn gave the keys of those governments to – drum roll please – the bankers.  The new head of Italy, Mario Monti, is a former Goldman Sachs man and of course, a banker.  Lucas Papademos, the appointed (not elected) head of Greece is a former member of the Trilateral Commission, and, well gosh darn, banker.

In the current scramble to save the Euro the manifest self-interest of the US is being willfully smudged: American banks are deeply involved with their European counterparts, and should the latter go bust, their Atlantic cousins will follow shortly thereafter – though American banks are moving as quickly as they can to dump Euro funds.  But for what?  Incredible shrinking greenbacks?  Renminbi?   The brutal truth is that there is so much outstanding manufactured debt in the system that it out “values” all the assets in the world by factors beyond counting.  Missing in the endless mumbo-jumbo arcanities of the “financial industry”  – bonds, sovereign bonds, CDO, derivatives, and many other even more esoteric acronyms – are the simple words “shell game.”  Though anyone familiar with any professional world knows that the jargon of the profession is essentially designed to hide the inner workings from those on the outside.

Occupiers in NYC

 

So today’s news titillates with the impending tilt of the “futures market” with hedge-funders making their bets on the crystal ball, where they win when others lose.  Meanwhile mere humans await news of their fates – whether their “savings” in the form of 401-K’s or cash in the mattress or a looked-for Social Security or European pension will be evaporated at the stroke of a pen, or the election of political Dracula’s looking for a fast fix.

Unoccupied LA

Silvio, ImperatoreSilvio’s note to himself about 8 traitors and resigning

Silvio Berlusconi, Italy’s richest man, owner of a dominant sector of its mass media, bunga bunga aficionado, multiple indictee for charges from sex with a minor to corrupting bankers and lawyers, famed lothario, clown at numerous great international summits, and, last but not least, Premier of Italy for most of the last 13 years, has finally been forced from office.  No, not by the politicians of Italy, who tend to match Mr Berlusconi only in their capacity for folly, if not on such a gradiose scale.  Nor by the voters of Italy, who despite Silvio’s odious reputation magically secured the votes of a majority, or at least of a coalition’s majority, time and again.   Silvio is a classic embodiment of a certain Italian tendency to love to place heroes on a high pedestal – higher the better – so they can have a longer time to enjoy themselves as the feet turn to clay and at the end the baying crowd can have at the corpse.

Crowds outside the Premier’s palazzo in RomeMussolini and friends at the end

That Mr Berlusconi, who began life as a crooner on cruise ships, and moved mysteriously to the pinnacle of his country, fits the mold of Italian politicians cannot be doubted, nor can his wily capacity as a businessman.   He had, as is customary, friends in high places.  And low.

Silvio and his friends near the beginningSilvio and Bettino Craxi, former PM, sent to exile in  TunisiaSilvio and ex-wife Veronica Lario who dumped him for playing around with girlsSilvio, modeling for Rodin or perhaps thinking of NoemiBillboard of Noemi Letizia, friend of Silvio

Silvio is not alone in the current crisis.  A skip away, in another Mediterranean country, Greece, another Premier has been shoved aside, and by the same forces as that which pushed Mr Berlusconi out.  Yes, the Magical Mystery Market, was the gravitational black-matter force that took control and in a swift little shell game replaced the head of Greece’s government with a banker, and while the Premier designate for Italy is not directly a banker, he’s awfully close to one.

Goldman Sachs, back a while, worked with the at-the-time right-wing conservative of government of Greece to cook-the-national-books so that Greece would qualify to enter the EU and the Euro zone.   Much of the subsequent problems of the country derive from this bit of chicanery – off of which, of course, Goldman Sachs profited.   Another kind of “derivative.”

And now, as the so-called PIIGS are put through the economic hoops drawn up by “the market” and imposed by its front institutions of the IMF and World Bank, we find the rickety edifice of “democracy” subject to a little pin-striped flim-flam job, just as happened in the USA in 2008 when the bankers shrieked “the sky is falling” and the Fed (a private bank that prints up greenbacks at the behest of…. itself, though it usually requires some political cover to do so), and Uncle Sam ordered up 16 trillion pieces of digitalized money, much of which went via Wall Street into the supposed safety of “sovereign bonds” – to say loans to actual countries instead of businesses.    Along the way, to celebrate this heist, the barons of Wall Street gave themselves nice fat bonuses: they’d made amazing bad bets, and then they, the uber-capitalists of the world, had conned the public (in the form of President Bush and his friends), to crank out a mere 16 trillion, no questions asked, at then Treasury Secretary Paulson’s request, so as to “socialise” their massive losses.   Mr Paulson, of course, was previously the CEO of… ta ta… Goldman Sachs.  Cosy little company.   And then they went and invested a ton of this in the supposed “safe” place of European sovereign bonds.  And lost again.   And so now, as the Euro totters and they stand to take yet another massive loss they have turned the tables, and it is not the Greeks who are offering lovely Trojan Horses, but our dear friends the bankers.

Why is this man smiling?

Soon we will doubtless be told that “the sky is falling” once again, and that Germany and France and the Euro Zone must move rapidly to shore up their crumbling currency (of which American banks hold massive amounts), and that the path to do so is to sell off public properties, to slash social welfare programs, and….. and to give it all to the bankers.

Mussolini and his mistressSic transit gloria, hanging out in the cool catacombs of Palermo

This weekend, responding to the Opinion Page columns by Thomas “Ever Wrong”  Friedman and to Ross “Never Doubting” Douthat I found myself twice

Though other respondents raked both columnists over the coals no less kindly, somehow my words seem to have gotten under their flunky editor’s skins.

Ever Serious Thomas

To Mr Friedman:

For someone who is given to peering over the horizon to see the future, Mr Friedman has a lot of catching up to do:  many of us noted the wallow into corruption of America’s institutions quite some time ago. Decades ago. But here, suddenly, it dawns on Mr Friedman that our system is corrupt and if it doesn’t shape up things could get ugly. But they already are ugly with a Justice Department that doesn’t prosecute the real crooks, a Congress that is capital’s poodle, an Executive that is merely Bushism with more articulate words, and all the consequences of the long-term corruption (much of which under other names Mr Friedman championed – from smash-mouth talk about Iraq to “globalization” and all the other wrong steps he’s taken). It is ugly to be evicted from your home because your job got shipped to China and some robo-mortgage was sold to you with tiny nasty print. It is ugly to be conned into a costly student loan on the premise of a hot-shot job to find the economy got shipped to lower-labor cost lands like India.

I bet if I waded through past column I could find Mr Friedman waxing about his lunch with Mubarack and how hunky-dory things were down on the Nile, peace with Israel, etc.

Eat humble pie, Mr Friedman. Something is going on and you didn’t know what it was, did you, Mr. Jones?

[Update.] On Nov. 2, I replied to another Friedman Op-Ed item, and again was censored.  Here’s what I wrote.  I note that many others made the same points, so I guess it must be “getting personal.”

“Moreover, I am certain….” Every time Mr Friedman utters this phrase or some equivalent, I feel like ducking for cover. He is serially wrong, so when he assures us of something, one has to look under the hood. He still tries to make his Iraq frothing at the mouth look good, never mind the damaging real-world evidence. Now he equivocates on our Afghan follies. Given how wrong wrong wrong Thomas is on the not-so-great game of opining as a “pundit” one must take his advice on The Great Game with a boulder of saline material.

Do ever-wrong columnists ever retire (in shame)?

Ross “Doubtless” Douthat

To Mr. Douthat:

Mr Douthat, typically, doesn’t comprehend what is before his eyes, or he can only see it through the thick distorting prism of his prejudices.  OWS – which he finally acknowledges as something other than as an object of ridicule – isn’t about fiddling with a few financial factors in the existing equation. It is about a wholesale rethinking of our values and priorities; it is about, OMG, questioning capitalism itself (in Douthat’s eyes as radical as questioning the Catholic hierarchy). It is about our need to shift from a profit-oriented system to a humanistic one which perceives that we live on a finite planet and that constant growth, as required to generate the riches and imbalances of a capitalist system, isn’t possible. We need to shift to a self-sustaining system in which limited wealth is equitably shared, not only among ourselves, but globally. This is anathema to our capitalist priests.

So Mr Douthat can only sit on the side-lines wondering how to fiddle with the existing system to “make it work ” not having learned the actual lesson that it can’t work because of original contradictions and design flaws. He imagines his current favored would-be candidate, Romney, will somehow morph (which Mitt is good at) into a Republican wizard who will save the system with wise decisions. The reality is that Romney is more a Wizard of Oz sort, a pure all-American fraud.

The Times tipped its hand early in the Occupy Wall Street game when, in keeping with the rest of the corporate owned and controlled press, it consigned the events down on Zuccotti Park to a small notice and then ignored it.  A far cry from the prompt coverage which the Tea Party corporate zombie demonstrations received.  Then, grudgingly, with snide and contemptuous articles the NYT, along with other national press, admitted that the demonstration there actually existed.  And when it sprouted companions across the country, and then across the globe, it began to actually take it with a small dose of seriousness.  As have our authoritarians in government who are now applying police force.  It is merely a matter of time before some are killed.

As was quipped by a very serious person quite long ago, a “free press” is available to those that own them.

Denver banker with OWS

It’s been a month now since some scruffy/hippie/anarchists pick-your-derogatory-term, went and camped out near Wall Street.  For weeks the American press ignored them, then vilified and ridiculed them, and yet their numbers kept growing – in Zuccotti Park in NYC, and then like a fungus, materializing in cities and towns across the world, and then across the globe: 900 cities and towns, all sharing in the same diffuse and unrhetorical “there is something profoundly wrong about how the world is organized.”    The powers that be – the politicians and their financial buddies, the giant corporations and their “news” media – simply had no idea what to do with them, except apply the Pravda-like practice of figuring if they didn’t report it, it didn’t exist.  In a display of extraordinary stupidity and blindness, with the fresh examples of Tunisia and Egypt and the whole Arab spring, the honchos of America (and elsewhere) seemed blind-sided when thanks to the internet the news spread like wild-fire across the country and the globe.  One would have thought they’d learned a thing or two by the most recent bits of history – the indignados of Spain, the strikes in Greece, the global signs of discontent from the middle-east to the middle-west.  But no, our Masters of the Universe, and their hired political lackeys and pundits didn’t see, because, as ever, caught in the bubble of their own small 1% world, they didn’t imagine any world but their own: they could not conceive that the world was not all well and good, never mind the blatant evidence in their own statistics.     Even though they had been explicitly involved in constructing that alternate universe of globalization, which translated as rampaging out-of-control capitalism – the one that made them filthy rich and left everyone else behind.

About three weeks ago, I got an e-mail from someone I did not know – Daniel Levine.   He wrote about being in the OWS group, and I asked him to keep me informed on things, and I asked him who he was and to tell me something of himself.  He replied, and said he’d keep me updated, and said he was 21, and thought if he hadn’t seen my 1987 film Plain Talk and Common Sense (uncommon senses) he might not have gone to join the Wall Street uprising.  As someone who is somewhat cynical about the efficacy of so-called “political” film-making – of which I’ll have much more to say soon on the http://www.jonjost.wordpress.com blog – I was a bit skeptical, but it did move me to think that my work had, in any way, helped clarify and move someone to act.   Likewise, with this blog, and other internet things which have absorbed much of my energies in the last decade and more, where I have consistently drawn into question our national religion of “Free Market Capitalism”, noted the depths of our corruption (not only financial, but far deeper and more profound, our ethics and morals as bent by the values of that capitalism) and the severe damages it inflicts upon our society. I would like to think perhaps all this energy did not go to waste, but was a tiny ripple in a larger social wave which was building all this time.   I don’t think anyone is the sole holder of a thought, but that if one thinks something, millions of others must do likewise.   Unlike many of my friends, who seemed terminally pessimistic about young Americans, I have always felt and said that I thought, at some time, somehow, things would finally erupt.  And so it seems they have.

Where ever you are – in America or elsewhere in the world – I encourage you to go out and join your fellow humans and add your voice to this movement, whatever name one wishes to give it.   We need to defeat the economic masters of this system, and their political and cultural minions, who have orchestrated the policies of the last decades and more, policies  which have obviously failed the vast majority of humans while enriching and empowering a tiny sliver who seem utterly heedless of the circumstances of humanity.  They seem to lust for wealth and power beyond rationality, and would, if left unchecked, render the world uninhabitable in their pursuit of it.  Occupy Wall Street and all the other streets should be the beginning of a major revision in humanity’s understanding of its place on the globe and our relationships with one another – as individuals and as societies.

Wall Street this week

For the last week there have been protests on Wall Street, though one would have been hard-pressed to know it if you followed our nation’s “mainstream” press.   There was virtually nary a word, and if so, buried far in the back.  And this time it wasn’t a bunch of geriatric cases reliving their wild 1960′s youth, or at least those were not predominant at all.  Instead it was young people of today – the one’s who are really getting screwed by the actions of Wall Street, their future deleted by big business’ lunge for maximum profit via off-shoring, down-sizing and shelling out zillions in bonuses to themselves for their cleverness.

So the guys in the offices (actually, for the same profit-motive reasons, a lot of Wall Street offices are no longer located there as it is cheaper in New Haven, places across the river in New Jersey so they shipped them there) now have not only jitters about the American market, the collapse of the European markets and all that financial stuff, but also about getting out the door to catch a limo home.

For updates on Wall Street see                 https://occupywallst.org/

The thin blue line protects Wall Street

Of course, while our press hasn’t deigned to cover this story lurking right under their noses (because those on Wall Street own America’s press), the UK Guardian and Al Jazeera, apparently not under the yoke of big money, have.  The New York Times, finally, had an article today which in its manner covers the story, in a rather dismissive manner.  Earlier they’d had a few blog posts, one stating that the protestors “believe the financial system it weighted to the advantage of the rich.”  It was phrased as if this were a dubious proposition.

Of other sources of information, see this:

Of course the police are using their new tactics – caging and kettling, hemming in protesting groups, arbitrary arrests, and all the other practices of  a soft police-state.   Our media is now a form of Pravda, printing mostly trivia to distract the public, suppressing all signs of dissent, and grinding out propaganda 24/7.



Meantime while at least some people in the US shake off the lethargy of the last decades – during which our masters were very busy building the tools for a somewhat extensive police-state – on Wall Street it’s really been rough, though last Friday there was a tiny glimmer of hope as the day ended “positive” after a week of tumbling down the charts.  In the arcane language of the market, in the past few weeks several trillions of dollars in “value” has been lost.  Pity the poor traders and investors.

On behalf of Wall Street America sent Treasury Secretary Timothy Geithner to Europe to lecture them on the need to get their debt problems sorted out.  It is a bit absurd that he should do so, since he was instrumental in setting up the American collapse of 2008.  His real concern is not really Europe, but that using the trillions of dollars (16 of them, trillions) which the US pumped into the financial system back then, our wonderful banks, epigones of rectitude that they are, loaned with nice interest rates attached, mucho dinaro to those self-same banks now wobbling in France and Germany (because they loaned the money to Greece and Portugal and…. for even bigger interest: sound like some kinda ponzi scheme?) and should those banks go under then America’s banks would themselves take a nasty hit.  Again.  And doubtless Timmy would feel the need to nudge the Fed to print up some more trillions to bail them out.  Except, perhaps the demonstrators down on the street might suddenly find themselves joined by millions of others, and as recently shown in some of our good ally governments, like Egypt, even a really nasty police-state apparatus can’t cope when a majority rises against them.  Or even a significant minority.   So Mr Geithner’s trip is really a mix of political pressuring to try to make sure a European swoon doesn’t take America with it.  Which it would.

Tim Geithner shoring up the Eurocrats

And lastly, a little belated mention, now relevant to those young people out getting harassed and busted by New York’s Finest down on Wall Street, of Carl Oglesby, a founder of the long ago SDS (Students for a Democratic Society), of the once-upon-a-time New Left.  He died a week and a few days ago, aged 76.   It was SDS and its off-shoots, which were in a large part the organizational center of all that stuff you have heard about the 60′s, in case you are not of my age and aren’t familiar.  It wasn’t all just the Beatles and Stones and Dylan and hippies.  I was never in SDS, being too much an anarchist to join pretty much anything, but I was close to it for a while (my girlfriend of the time was in it and deeply engaged, and she’s still hotly involved in politics).   Oglesby was an exception in SDS – older, a former straight-laced business guy whose head got turned sharply.  For a while he was the SDS’s best spokesperson, though like many, he got chewed up in the usual splintering factionalism which political hot-heads usually devolve into.

Carl Oglesby, 1968

I print below a speech he gave in 1965.  I was in prison at the time, doing my 27 months for refusing the order to comply with Uncle Sam’s wishes.   Reading it now, one can have a handful of responses.  One might be to wax nostalgic, but I am unable to do so, that being an emotional state I rather abhor.  Another would be to see how seemingly dated some things are – names, places – all the usual detritus of history which zips by faster than you can imagine, though when immersed in it each of these little details seems gargantuan.  And another is to see how it suggests that the New Left lost, and lost badly.  Because what Oglesby says in these words, if we can brush away the cobwebs of time, some of the dated language and such, and read for the real content, is as pertinent today as it was when he spoke them.   Not much as really changed, or in truth it has changed for the worse:  the corporate control of America (and elsewhere in the world) is far stronger than it was then.   Today, as noted, the “mainstream press” can’t be bothered to report a little ruckus on Wall Street.  It was like that back then, but not in such a monolithic manner.  And today, like then, cops crack heads, make illegal busts, and in the lingo of the 60′s, “serve The Man.”  They still do.

On November 27, 1965, the new president of SDS, Carl Oglesby, spoke at another March on Washington. Responding to Paul Potter’s call to “name the system,” Carl went to the heart of contradiction between America’s revolutionary birth and its present foreign policy. 

Seven months ago at the April March on Washington, Paul Potter, then President of Students for a Democratic Society, stood in approximately this spot and said that we must name the system that creates and sustains the war in Vietnam – name it, describe it, analyze it, understand it, and change it.

Today I will try to name it – to suggest an analysis which, to be quite frank, may disturb some of you — and to suggest what changing it may require of us.

We are here again to protest a growing war. Since it is a very bad war, we acquire the habit of thinking it must be caused by very bad men. But we only conceal reality, I think, to denounce on such grounds the menacing coalition of industrial and military power, or the brutality of the blitzkrieg we are waging against Vietnam, or the ominous signs around us that heresy may soon no longer be permitted. We must simply observe, and quite plainly say, that this coalition, this blitzkrieg, and this demand for acquiescence are creatures, all of them, of a Government that since 1932 has considered itself to he fundamentally liberal.

The original commitment in Vietnam was made by President Truman, a mainstream liberal. It was seconded by President Eisenhower, a moderate liberal. It was intensified by the late President Kennedy, a flaming liberal. Think of the men who now engineer that war — those who study the maps, give the commands, push the buttons, and tally the dead: Bundy, McNamara, Rusk, Lodge, Goldberg, the President himself. They are not moral monsters. They are all honorable men. They are all liberals.

But so, I’m sure, are many of us who are here today in protest. To understand the war, then, it seems necessary to take a closer look at this American liberalism. Maybe we are in for some surprises. Maybe we have here two quite different liberalisms: one authentically humanist; the other not so human at all.

Not long ago I considered myself a liberal and if, someone had asked me what I meant by that, I’d perhaps have quoted Thomas Jefferson or Thomas Paine, who first made plain our nation’s unprovisional commitment to human rights. But what do you think would happen if these two heroes could sit down now for a chat with President Johnson and McGeorge Bundy?

They would surely talk of the Vietnam war. Our dead revolutionaries would soon wonder why their country was fighting against what appeared to be a revolution. The living liberals would hotly deny that it is one: there are troops coming in from outside, the rebels get arms from other countries, most of the people are not on their side, and they practice terror against their own. Therefore: not a revolution.

What would our dead revolutionaries answer? They might say: “What fools and bandits, sirs, you make then of us. Outside help? Do you remember Lafayette? Or the three thousand British freighters the French navy sunk for our side? Or the arms and men, we got from France and Spain? And what’s this about terror? Did you never hear what we did to our own Loyalists? Or about the thousands of rich American Tories who fled for their lives to Canada? And as for popular support, do you not know that we had less than one-third of our people with us? That, in fact, the colony of New York recruited more troops for the British than for the revolution? Should we give it all back?”

Revolutions do not take place in velvet boxes. They never have. It is only the poets who make them lovely. What the National Liberation Front is fighting in Vietnam is a complex and vicious war. This war is also a revolution, as honest a revolution as you can find anywhere in history. And this is a fact which all our intricate official denials will never change.

But it doesn’t make any difference to our leaders anyway. Their aim in Vietnam is really much simpler than this implies. It is to safeguard what they take to be American interests around the world against revolution or revolutionary change, which they always call Communism – as if that were that. In the case of Vietnam, this interest is, first, the principle that revolution shall not be tolerated anywhere, and second, that South Vietnam shall never sell its rice to China – or even to North Vietnam.

There is simply no such thing now, for us, as a just revolution – never mind that for two?thirds of the world’s people the Twentieth Century might as well be the Stone Age; never mind the melting poverty and hopelessness that are the basic facts of life for most modern men; and never mind that for these millions there is now an increasingly perceptible relationship between their sorrow and our contentment.

Can we understand why the Negroes of Watts rebelled? Then why do we need a devil theory to explain the rebellion of the South Vietnamese? Can we understand the oppression in Mississippi, or the anguish that our Northern ghettoes makes epidemic? Then why can’t we see that our proper human struggle is not with Communism or revolutionaries, but with the social desperation that drives good men to violence, both here and abroad?

To be sure, we have been most generous with our aid, and in Western Europe, a mature industrial society, that aid worked. But there are always political and financial strings. And we have never shown ourselves capable of allowing others to make those traumatic institutional changes that are often the prerequisites of progress in colonial societies. For all our official feeling for the millions who are enslaved to what we so self?righteously call the yoke of Communist tyranny, we make no real effort at all to crack through the much more vicious right?wing tyrannies that our businessmen traffic with and our nation profits from every day. And for all our cries about the international Red conspiracy to take over the world, we take only pride in the fact of our six thousand military bases on foreign soil.

We gave Rhodesia a grave look just now – but we keep on buying her chromium, which is cheap because black slave labor mines it.

We deplore the racism of Verwoert’s fascist South Africa – but our banks make big loans to that country and our private technology makes it a nuclear power.

We are saddened and puzzled by random backpage stories of revolt in this or that Latin American state – but are convinced by a few pretty photos in the Sunday supplement that things are getting better, that the world is coming our way, that change from disorder can be orderly, that our benevolence will pacify the distressed, that our might will intimidate the angry.

Optimists, may I suggest that these are quite unlikely fantasies? They are fantasies because we have lost that mysterious social desire for human equity that from time to time has given us genuine moral drive. We have become a nation of young, bright-eyed, hard-hearted, slim-waisted, bullet-headed make-out artists. A nation – may I say it? – of beardless liberals.

You say I am being hard? Only think.

This country, with its thirty-some years of liberalism can send 200,000 young men to Vietnam to kill and die in the most dubious of wars, but it cannot get 100 voter registrars to go into Mississippi.

What do you make of it?

The financial burden of the war obliges us to cut millions from an already pathetic War on Poverty budget. But in almost the same breath, Congress appropriates one hundred forty million dollars for the Lockheed and Boeing companies to compete with each other on the supersonic transport project?that Disneyland creation that will cost us all about two billion dollars before it’s done.

What do you make of it?

Many of us have been earnestly resisting for some years now the idea of putting atomic weapons into West German hands, an action that would perpetuate the division of Europe and thus the Cold War. Now just this week we find out that, with the meagerest of security systems, West Germany has had nuclear weapons in her hands for the past six years.

What do you make of it?

Some will make of it that I overdraw the matter. Many will ask: What about the other side? To be sure, there is the bitter ugliness of Czechoslovakia, Poland, those infamous Russian tanks in the streets of Budapest. But my anger only rises to hear some say that sorrow cancels sorrow, or that this one’s shame deposits in that one’s account the right to shamefulness.

And others will make of it that I sound mighty anti-American. To these, I say: Don’t blame me for that! Blame those who mouthed my liberal values and broke my American heart.

Just who might they be, by the way? Let’s take a brief factual inventory of the latter-day Cold War.

In 1953 our Central Intelligence Agency managed to overthrow Mossadegh in Iran, the complaint being his neutralism in the Cold War and his plans to nationalize the country’s oil resources to improve his people’s lives. Most evil aims, most evil man. In his place we put in General Zahedi, a World War II Nazi collaborator. New arrangements on Iran’s oil gave twenty-five year leases on forty per cent of it to three U.S. firms, one of which was Gulf Oil. The C.I.A.’s leader for this coup was Kermit Roosevelt. In 1960, Kermit Roosevelt became a vice president of Gulf Oil.

In 1954, the democratically elected Arbenz of Guatemala wanted to nationalize a portion of United Fruit Company’s plantations in his country, land he needed badly for a modest program of agrarian reform. His government was overthrown in a C.I.A.-supported rightwing coup. The following year, Gen. Walter Bedell Smith, director of the C.I.A. when the Guatemala venture was being planned, joined the board of directors of the United Fruit Company.

Comes 1960 and Castro cries we are about to invade Cuba. The Administration sneers, “poppycock,” and we Americans believe it. Comes 1961 and the invasion. Comes with it the awful realization that the United States Government had lied.

Comes 1962 and the missile crisis, and our Administration stands prepared to fight global atomic war on the curious principle that another state does not have the right to its own foreign policy.

Comes 1963 and British Guiana where Cheddi Jagan wants independence from England and a labor law modeled on the Wagner Act. And Jay Lovestone, the AFL-CIO foreign policy chief, acting, as always, quite independently of labor’s rank and file, arranges with our Government to finance an eleven-week dock strike that brings Jagan down, ensuring that the state will remain British Guiana, and that any workingman who wants a wage better than fifty cents a day is a dupe of Communism.

Comes 1964. Two weeks after Undersecretary Thomas Mann announces that we have abandoned the Alianza’s principle of no aid to tyrants, Brazil’s Goulart is overthrown by the vicious right?winger, Ademar Barros, supported by a show of American gunboats at Rio de Janeiro. Within twenty four hours, the new head of state, Mazzilli, receives a congratulatory wire from our President.

Comes 1965. The Dominican Republic. Rebellion in the streets. We scurry to the spot with twenty thousand neutral Marines and our neutral peacemakers – like Ellsworth Bunker Jr., Ambassador to the Organization of American States. Most of us know that our neutral Marines fought openly on the side of the junta, a fact that the Administration still denies. But how many also know that what was at stake was our new Caribbean Sugar Bowl? That this same neutral peacemaking Bunker is a board member and stock owner of the National Sugar Refining Company, a firm his father founded in the good old days, and one which has a major interest in maintaining the status quo in the Dominican Republic? Or that the President’s close personal friend and advisor, our new Supreme Court Justice Abe Fortas, has sat for the past 19 years on the board of the Sucrest Company, which imports blackstrap molasses from the Dominican Republic? Or that the rhetorician of corporate liberalism and the late President Kennedy’s close friend Adolf Berle, was chairman of that same board? Or that our roving ambassador Averill Harriman’s brother Roland is on the board of National Sugar? Or that our former ambassador to the Dominican Republic, Joseph Farland, is a board member of the South Puerto Rico Sugar Co., which owns two hundred and seventy?five thousand acres of rich land in the Dominican Republic and is the largest employer on the island – at about one dollar a day?

Neutralists! God save the hungry people of the world from such neutralists!

We do not say these men are evil. We say, rather, that good men can be divided from their compassion by the institutional system that inherits us all. Generation in and out, we are put to use. People become instruments. Generals do not hear the screams of the bombed; sugar executives do not see the misery of the cane cutters: for to do so is to be that much less the general, that much less the executive.

The foregoing facts of recent history describe one main aspect of the estate of Western liberalism. Where is our American humanism here? What went wrong?

Let’s stare our situation coldly in the face. All of us are born to the colossus of history, our American corporate system – in many ways an awesome organism. There is one fact that describes it: With about five per cent of the world’s people, we consume about half the world’s goods. We take a richness that is in good part not our own, and we put it in our pockets, our garages, our split-levels, our bellies, and our futures.

On the face of it, it is a crime that so few should have so much at the expense of so many. Where is the moral imagination so abused as to call this just? Perhaps many of us feel a bit uneasy in our sleep. We are not, after all, a cruel people. And perhaps we don’t really need this super-dominance that deforms others. But what can we do? The investments are made. The financial ties are established. The plants abroad are built. Our system exists. One is swept up into it. How intolerable – to be born moral, but addicted to a stolen and maybe surplus luxury. Our goodness threatens to become counterfeit before our eyes – unless we change. But change threatens us with uncertainty – at least.

Our problem, then, is to justify this system and give its theft another name – to make kind and moral what is neither, to perform some alchemy with language that will make this injustice seem a most magnanimous gift.

A hard problem. But the Western democracies, in the heyday of their colonial expansionism, produced a hero worthy of the task.

Its name was free enterprise, and its partner was an illiberal liberalism that said to the poor and the dispossessed: What we acquire of your resources we repay in civilization: the white man’s burden. But this was too poetic. So a much more hardheaded theory was produced. This theory said that colonial status is in fact a boon to the colonized. We give them technology and bring them into modem times.

But this deceived no one but ourselves. We were delighted with this new theory. The poor saw in it merely an admission that their claims were irrefutable. They stood up to us, without gratitude. We were shocked – but also confused, for the poor seemed again to be right. How long is it going to be the case, we wondered, that the poor will be right and the rich will be wrong?

Liberalism faced a crisis. In the face of the collapse of the European empires, how could it continue, to hold together, our twin need for richness and righteousness? How can we continue to sack the ports of Asia and still dream of Jesus?

The challenge was met with a most ingenious solution: the ideology of anti-Communism. This was the bind: we cannot call revolution bad, because we started that way ourselves, and because it is all too easy to see why the dispossessed should rebel. So we will call revolution Communism. And we will reserve for ourselves the right to say what Communism means. We take note of revolution’s enormities, wrenching them where necessary from their historical context and often exaggerating them, and say: Behold, Communism is a bloodbath. We take note of those reactionaries who stole the revolution, and say: Behold, Communism is a betrayal of the people. We take note of the revolution’s need to consolidate itself, and say: Behold, Communism is a tyranny.

It has been all these things, and it will be these things again, and we will never be at a loss for those tales of atrocity that comfort us so in our self-righteousness. Nuns will be raped and bureaucrats will be disembowelled. Indeed, revolution is a fury. For it is a letting loose of outrages pent up sometimes over centuries. But the more brutal and longer-lasting the suppression of this energy, all the more ferocious will be its explosive release.

Far from helping Americans deal with this truth, the anti?Communist ideology merely tries to disguise it so that things may stay the way they are. Thus, it depicts our presence in other lands not as a coercion, but a protection. It allows us even to say that the napalm in Vietnam is only another aspect of our humanitarian love – like those exorcisms in the Middle Ages that so often killed the patient. So we say to the Vietnamese peasant, the Cuban intellectual, the Peruvian worker: “You are better dead than Red. If it hurts or if you don’t understand why – sorry about that.”

This is the action of corporate liberalism. It performs for the corporate state a function quite like what the Church once performed for the feudal state. It seeks to justify its burdens and protect it from change. As the Church exaggerated this office in the Inquisition, so with liberalism in the McCarthy time – which, if it was a reactionary phenomenon, was still made possible by our anti-communist corporate liberalism.

Let me then speak directly to humanist liberals. If my facts are wrong, I will soon be corrected. But if they are right, then you may face a crisis of conscience. Corporatism or humanism: which? For it has come to that. Will you let your dreams be used? Will you be a grudging apologist for the corporate state? Or will you help try to change it – not in the name of this or that blueprint or ism, but in the name of simple human decency and democracy and the vision that wise and brave men saw in the time of our own Revolution?

And if your commitment to human values is unconditional, then disabuse yourselves of the notion that statements will bring change, if only the right statements can be written, or that interviews with the mighty will bring change if only the mighty can be reached, or that marches will bring change if only we can make them massive enough, or that policy proposals will bring change if only we can make them responsible enough.

We are dealing now with a colossus that does not want to be changed. It will not change itself. It will not cooperate with those who want to change it. Those allies of ours in the Government – are they really our allies? If they are, then they don’t need advice, they need constituencies; they don’t need study groups, they need a movement. And it they are not, then all the more reason for building that movement with the most relentless conviction.

There are people in this country today who are trying to build that movement, who aim at nothing less than a humanist reformation. And the humanist liberals must understand that it is this movement with which their own best hopes are most in tune. We radicals know the same history that you liberals know, and we can understand your occasional cynicism, exasperation, and even distrust. But we ask you to put these aside and help us risk a leap. Help us find enough time for the enormous work that needs doing here. Help us build. Help us shape the future in the name of plain human hope.

Perhaps, what is different today is that the internet exists, and it has not yet been brought under the control of our corporations and governments.  And in turn counters this cynical corporation which exists to spew out lies in support of our oligarchy, and manipulate the public to act against its own interests.

 

Following the Mad-Hatter’s Tea Party in Washington, the world’s financial markets quivered and on Monday August 8 took a leap downward.   A lot of money and paper exchanged hands, and some won and some lost.  It is said 8 trillion dollars in value evaporated.   The Dow-Jones plummeted 600+ points.  Elsewhere markets did a similar swoon.

The next day, mimicking a yo-yo, the markets jumped up: DJ up 400+ points.  More money and paper changed hands, more was won and lost, and presumably 6 or so trillion of evaporated dollar value rematerialized.  It seems something akin to advanced quantum physics.  I await with baited breath the next contortion to which these trillions are subjected.  [On Wednesday the DJ index dropped 519, cancelling out the gains of the previous day and adding to the losses - another trillion vanished !]

Meanwhile, in the UK, where the not-quite-new regime of Cameron and Clegg imposed “austerity” conditions on the country following their election victory, the bill is coming in:


London riots, August 2011

Scurrying back to London belatedly from his Tuscan villa August vacation, David Cameron, PM, deplored the violence and ordered 10,000 more police onto the streets.   In the last months cuts had been ordered which would eliminate 9,000 police jobs.   The social media so lauded for the uprisings in Tunisia, Egypt, Libya and Syria suddenly came into play in London, with flash-mobs materializing here and there, and when bobbies were imported from elsewhere, the mid-lands joined the fray.   While Mr Cameron and Clegg may only recognize it when a crowd of football yobs riot, the UK is in fact still very much a class-riven culture, and it is full of un or under-employed people, of all colors, including Anglo-white, who clearly boil over with resentment at the harsh economic lines between them and the public face of Britain, its monarchy, The City, and the veneer of class suggested by the cultural dressing on this very ill society.   The tensions between economic classes is palpable, and as evidenced in these riots, very real.

Arriving in Paris the other night, at Orly, one sensed the same tension here in France: entering the RER train into Gare du Nord, the tone shifted to grim graffiti covered cars, a dominant population of empire come home to roost, and a sense of imminent violence pervading the air.

Riot, Paris banlieu, May 2011

According to the wizards of the financial world, the present tribulations of the mystical markets has now to do with European banks, private and “sovereign”, and their debts.  This makes it different from 2008 when it had mostly to do with American banks and their debts, say the sages.  Of course extracting actual information from these people is somewhat impossible.    To boil it all down to basics, it seems the European banks – mostly French and German – invested heavily in Greek and Irish and Portuguese and Spanish and Italian debt (along with many other things in those realms).   And now it seems they won’t be getting their money back, which leaves them holding the bag (empty) as it were.   Hence the current air of panic as the debt problem shifts from shifty places like Greece, to staid supposedly upright places like France and Germany (or, ho ho, the USA).

Financial institutions in the United States have one-third more capital than they did in 2007, and they are better positioned to weather the current storm. And they have reduced their risk-taking. Instead of lending $25 for every $1 dollar worth of capital they hold, they are now lending a more reasonable $16…

This process of lending what you do not have (see above) predicated on the hypothetical income to be derived from the loan (see underwater mortgages for example), is called “leveraging”.   Once upon a time it was “normal”, and legally required, for a bank to leverage itself by a ratio of 3 to 5 to 1:  i.e., I have a buck in reality, and I loan 3 to 5.    Banking was boring.  Then, along came the 80′s and the regulations were loosened at the behest of those on Wall Street.  And in a short time leveraging zoomed to this:

2009 bank leveraging

On September 30, 2009, Lewis announced his retirement from Bank of America effective as of December 31, 2009. Lewis released the statement “The Merrill Lynch and Countrywide integrations are on track and returning value already. Our board of directors and our senior management include more talent, and more diversity of talent, than at any time in this company’s history. We are in position to begin to repay the federal government’s TARP investments. For these reasons, I decided now is the time to begin to transition to the next generation of leadership at Bank of America.”[6] It was reported that this move was his own decision and that he did not receive pressure from the bank’s Board of Directors.[7] Based on the company’s most recent proxy statement, his full pension benefits total $53 million. Critics of the financial sector’s salary scale have cited this sum as indicative of poor oversight by the board of directors and as an example of inflated executive compensation. As his plan dates back more than seven years, he is still entitled to full benefits. Bank of America has since revised their compensation plan for retiring executives.[8] In October, 2009, at the suggestion of Kenneth Feinberg, the U.S. Treasury’s special master for compensation, Lewis decided to forgo salary or bonus in 2009. His 2008 salary was about $1.5 million. “He has taken home $148.8 million from cash and stock sales since taking over the bank in 2001, according to Equilar, a compensation research firm. He is also leaving with more than $135 million in retirement benefits, including the pension and $10 million in life insurance benefits, according to an analysis of corporate filings by James F. Reda & Associates, an independent consulting firm.”[9]  (wikipedia)

Greek riots, earlier this year

Having drawn the great public into the capitalist consumer Valhalla of buying on credit, and having done so itself, the governmental systems of the West (don’t worry, the East is soon to follow), are suddenly confronted with old Marx’s observation that inside of capitalism is a fat contradiction.  And indeed there is.

Old Karl

What Marx saw was that capitalism as a system was structured in a manner that those who are successful in it are in effect blinded by their own greed:  give a capitalist enough rope and he will hang on it.  And, as the headlines today repeatedly confirm, so it is.  Within their bubble of wealth and power, those at the pinnacle of a capitalist system are so far removed from the everyday realities of the world, that they are indeed blind.  Hence the stumbling moves of those in Europe, in America, in China (nominally “communist” but these days more a roaring cowboy capitalist place), who are so surrounded with wealth and those who share it, that they cannot imagine the brute lives of those who have almost nothing.  Nor can they imagine the nothing-to-lose psychology which those at the bottom of the pyramid feel.  They feel only the crushing weight of everything above them.   And so, in these days, the contradictions are bubbling upward, seen in cold statistical data, and seen in hot riots.  It doesn’t really require any kind of brilliance to see all this, in fact it seems rather obvious.  Today many things have been globalized:  the neo-liberal system of economics which places the private sector on an altar and imagines raw capitalism to the the fount of solutions for everything; at the same time the schism of wealth vs poverty is to be seen in the urban graffiti which now graces almost every city around the world – the voice of the dispossessed scrawled across the urban landscape.  To imagine that this voice will remain only “artistic” is to imagine a world in which the vast gulf between a tiny elite and the great masses doesn’t exist.

Central Paris – once confined to the outskirts, graffiti now is to be found everywhere

Under the present system it is only a matter of time before the contradictions erupt, as they have in England, and France and Greece in recent months, in a more fundamental conflict.  It really isn’t a matter of whether it will happen, but only how it will unfold.  Will the powers that be unleash their full police and military powers or not – to be like Assad in Syria, or to fold as did Mubarak in Egypt.

Walking yesterday in the neighborhood I lived in here in Paris, 1998-99, Belleville, there seemed a marked change.  I’d read that it had become more fashionable, with cafes and boutiques.  But the street I walked along was, for blocks, 99.5% north African – Moroccan, Tunisian – with a dense open market along Blvd. de Belleville.  The other .5% was myself, and a group of 4 tough looking policemen.    Here in France they seem always to be in a group of 4, sometimes more, never less.  Armed with truncheons and guns.  While they appear solid, it is clear they could be readily overwhelmed if those they are policing changed the tune.

When I lived here earlier it was more like 50/50, with half being North African, and the other half a mix of French and Asian, and similarly, the Gare du Nord, which was a rough area then, but mixed, now seems almost entirely black African.  There too, the same policing is evident.

France, May 2011

Of course Marx erred in failing to see that, like any kind of system, his own “socialist/communist” one also had its own internal contradiction, which, exactly as capitalism, is rooted in a fundamental failure in reading the executor of the system – we humans.  Marx imagined a withering of the State, and failed to understand that certain humans desire power, and will do whatever their historical circumstances provide to secure that power.  Communism, like capitalism, is a belief system that has quasi-religious psychological qualities: one believes, and hence neither logic nor concrete evidence serves to dissuade.  Lenin, Trotsky, Stalin and then the pallid pre-embalmed leaders who followed them all felt empowered by their beliefs to do whatever was necessary to “build communism” which in their minds was inseparable from themselves.  The result was murderous.

Capitalism is slightly more clever, though equally as murderous: it places an abstract distance between the murderer and the murder.   One buys stocks, invests; the purpose is to maximize profit.  The ideology of capitalism claims that this process will winnow out the good from bad, make production most efficient and separates the stock owner from the behaviors involved, and as long as the underlying purpose is accomplished, it doesn’t matter how fatal to others the process is.  The actual process is normally masked – the stockholder does not see the despoilation of the world, the exploitation of labor – he sees only the stock dividends and is happy; he does not want to see the process in any other way that as “profit.”  And so he willfully does not see.   The holy grail of capitalism is profit, and what happens in its pursuit is “holy.”   Pure greed is licensed as moral behavior, just as in communism certain kinds of pure “power” was.  The results are essentially the same: millions dead.

As a religion, Christianity has been remarkably successful, I think in part because it appeals to the individual ego:  god is personally looking after you it claims.  And hence one of its fundamental tenets circles around the self:  “Do unto others as you would have them do unto you.”   At first glance this seems a reasonable Golden Rule, but in truth it is toxic, for like capitalism, and like communism, it fails to account for the nature of human beings.  In centering ethics upon the self, the Golden Rule licenses the worst of human behavior and elevates it to the highest moral status.  Just as capitalism elevates profit and communism elevates some hypothetical wave of history.   There are some who desire material wealth so much that they do not think about or care what the real cost is; there are others who desire power and control over others so much that they will do whatever is needed to secure it, and if a quasi-religion such as Communism seems to authorize it, so much the better.  And there are some whose psyches desire punishment and torture, and the Golden Rule and its religion seems to authorize those wishes.  The history of Christianity is steeped in bloodshed, all in the name of doing unto others what one would have done to oneself.

A proper “golden rule” would be: do unto others what they would have done unto them.

Just prior to posting this the New York Times headlines:

Another Sharp Swing, This Time Up, for U.S. Markets

The market is “just a yo-yo,” said Myles Zyblock, chief institutional strategist and managing director for capital markets research at RBC Capital Markets. “I think the primary structure is still in place, and that is a structure of concern.”

“People are trying to bottom-pick today, and it might be the bottom,” said Mr. Zyblock. “I would like to see the collective message start to stabilize to give me confidence there is a hardened floor underneath this market.”

Eric Thorne, an investment advisor at Bryn Mawr Trust, called it a “shoot first, ask questions later” market.

[July 12, the DJ index swung up another 400+ points, though for the week and month it is cumulatively down]

All that glitters is not gold.

[As was predictable on the yo-yo logic, on Friday Aug 12, the DJ index did indeed pop back up, 400+ points.  However over the week it was down 2%, though clearly some traders are cleaning up - they get money on each sale, whichever way it goes - in some are pocketing a lot in these daily swings.   Another way to look at it, for those who ever had and understand cars, when your metal horse starts vibrating with wild oscillations usually you throw a rod shortly after.  For systems in which a steady up or down or even keel is the norm, usually wild oscillations are indicative of impending trouble. ]

Downtown Seoul this week, from uncharacteristic monsoon-like weather

With permission of the author, John Englander, (http://www.johnenglander.net) I repost the item below on likely ocean levels in the coming decades and centuries.  The article I think gives a clear and concise explanation, rooted in scientific evidence.   While I am myself far from a scientist, I am a little less sanguine about the suggestion here that sea levels will begin to rise in another decade or so at the rate indicated here – 1 to 5 (3 – 15 feet) meters by the end of the century; my modestly educated guess is it will be much more, as numerous elements collide in a catastrophe-theory scenario, in which there is a harsh rupture (already indicated here in the 20,000 times faster than historical precedent in the build-up of of CO2) in many of the balancing structures previously present – such as the sudden release of CO2 stored in arctic tundra, a similar release as forest fires expand from drought and the death of forests (presently in the US West thanks to pine beetle infestation caused by warmer summers, not to mention the man-made destruction of rain forests in S America and Asia.)  And as well I see very little sign that we will collectively put our foot on the brakes of CO2 emissions at the level required to slow the human industrial input of CO2 into the atmosphere.  If anything it is likely to rise sharply in the next decade or two.   I am fearful it will take a truly major catastrophe to slam some sense into our communal minds, and before we rationally address the matter, we seem far more likely to engage in wars for access to water, minerals, food production areas, and so on.  This is already aggressively occurring under the mask of  “globalization” in which monetary wealth is license to buy up South America and African farmland and evict the natives to grow food for China, S Korea and others.   This process is only beginning and is sure to produce politically volatile situations in which warfare will be the resort.   Modern warfare injects a lot of CO2 into the atmosphere, not to mention other highly toxic elements.  We might note that the US military is the largest single user of carbon-based fuels in the world.

As waters rise, and coastal areas, usually the most densely populated regions in most countries,flood,  populations will forced inland to survive, sparking mass migrations and accompanying conflict.  Also much rich farmland is located in alluvial coastal plains and these will be lost.  The confluence of these, and other aspects, are likely to produce highly aggravating situations resulting in famines and other forms of pestilence as populations grow denser under less and less organized circumstances.  Refugee camps are not usually paragons of health, and we are talking of millions and billions of refugees (for example Bangladesh will be inundated and those 100 millions will flee inland to… jam-packed India.)  Similarly higher temperatures will produce far greater moisture in the atmosphere resulting in greater snow packs in mountain areas and monsoon-type weather seen this year in the American mid-west.  Higher summer temperatures will result in a fast run-off of the snowpack, resulting in the flooding seen on the Missouri and Mississippi rivers, or in the floods in Korea.  These shifts are happening so rapidly that they are overwhelming the flood control systems predicated on an entirely different basis than what is probable to be the new norm in the immediate years to come.  The result will be a global breakdown in infra-structures designed for utterly different “norms.”  Again, the consequences will lead to socio-political upheavals of major proportions.    The consequences are unlikely to be handled in a sane, rational manner.

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Why Sea Level will Rise for Centuries; ultimately 100 feet +

By John – Posted on 20 July 2011

Just 5 illustrations show why sea level will almost certainly rise for centuries; the STUNNING levels of historical change; and even why society generally doubts that it will ever happen. Articles about sea level rise  (SLR) somewhere on the planet are appearing almost daily. (I track this stuff for my forthcoming book “High Tide on Main Street”.) I am glad to see at least this modest increased awareness about a HUGE problem.

The chart to the right shows sea level change over the last 24,000 years, taken from the geologic record. It is in meters, the standard measurement in science. (For approximate # of feet, multiply by 3.)

There are 4 things to note:

1.  Less than 20,000 years ago the ocean was down almost 400 feet below the current sea level. A HUGE change in sea level, and not that long ago. This is based on geologic records that have been known and taught for the better part of a century.

2.  Nearly all 130 meters of rise (400 feet) happened between 20,000 years ago, at the peak of the last ice age, and about 6-8 thousand years ago; in other words over about just 12,000 years.

3.  For about the last 6,000 years, sea level has hardly changed at all. That is about the age of our earliest written records, and more or less the span of human civilization. No wonder that we believe sea level to be rather fixed in place. 

4.  It is also worth noting that about 14,000 years ago, long before any human impact, that the ice sheets melted quickly, causing what the geologists call a ‘meltwater pulse.’ The ocean rose about 65 feet in just 4 centures, averaging more than a foot a decade– hard to imagine! (Might that sudden rise be the basis for stories of the biblical flood, or Atlantis?)

Amazingly, sea level has regularly cycled up and down about 120 meters, or almost 400 feet on a regular cycle, pretty much every 100,000 years. That has been going on for at least 2.7 million years. If you want to see the chart showing that pattern, look back at my last post ”SPIEGEL missed Explaining wide range of 3-16 feet of SLR forecasts”; the lower yellow/blue graph there shows an expanded view of the last 140,000 years of sea level, and a larger view of more than 800,000 years.  (Again, the vertical scale is in meters, so for those who use feet, MULTIPLY BY 3, approximately.)

While that huge cycle of sea level change is likely very surprising, it ties into something you likely do know about: the ice ages, when North America and Europe were regularly covered in ice more than 3 km (2 miles) deep. As the ice melted, the water flowed into the sea, raising the level of the ocean. (As the sea level changes, of course, the shoreline moves — a LOT.) Not only can scientists calculate the thickness of that ice and how much water would have been added to the ocean, but we can actually see very distinct ancient beaches and shorlines now more than 300 feet underwater, as further proof. (I have personally seen them from research submarines.) So, there is no question that sea level changes.

Scientists look for causes, relationships, and corroboration to prove hypotheses (theories). With temperature, CO2 (carbon dioxide) and Sea Level, the historical records of geology fit together neatly.

Temperature in the atmosphere correlates almost directly with the amount of CO2, due to a principle of basic physics and chemistry. Long before Al Gore, it was proven that CO2 (carbon dioxide) was colorless, and transmitted light VERY well, but that it trapped heat VERY WELL too.

Today we call that the greenhouse effect, as it describes how a glass greenhouse enables keeping warmer temperature in a colder climate.  Glass has those same properties as CO2 gas.

As the planet warms, the ice sheets melt, raising sea level; there are three things that move in close synchonization. The attached graph shows temperature in RED, CO2 in GREEN, and sea level in BLUE, for the last 420,000 years.

The problem we face becomes apparent when we update the CO2 level, as shown in the graph on the left, with 2 lines of Temperature (RED) and CO2 – NOW shown in BLUE).

CO2 has gone up like a rocket, and corresponds to such things as the coal and petroleum that we have burned over the last century.

We have to note that these graphs showing hundreds of thousands of years, compress the horizontal time scale. It is not possible to see a specific year, or even a decade. Even a century would be a speck, when the smallest division on the graph at the left is 50,000 years. But it does show a “big picture” with GREAT clarity. What you can’t tell from such a graph is how many years temperature and CO2 changes might lag each other. (And interestingly, sometimes one leads, and sometimes the other.  That’s worthy of a separate post.)

The fact is that we don’t know how quickly temperature will follow the vertical line of CO2 increase.  That is the extremely important question that different teams of scientists are trying to figure out with supercomputers — to project how quickly our atmosphere and ocean will warm as CO2 levels continue to increase.

CO2 is now at 394 ppm; about 40% higher than at any time in millions of years. It ranges from about 180 – 280 ppm with each ice age cycle as shown in that 2 line, Red-Blue graph above. (For the latest actual number, see the little blue graphic in the right hand column of my home page.)

Just two more images wrap up the sea level story.

The oceans and atmosphere have warmed globally over the last century. This is the 130 year reconstruction of the average annual land-sea temperatures over the entire planet. It shows a change from a low of almost minus 0.4 from a norm, to a positive 0.6 — just under a degree Celsius over the 130 year graph, or about 0.8 degrees C (about 1.4 degrees F) over the last century.

So we already have most of the pieces of the sea level puzzle.

  • Sea Level has changed repeatedly by almost 400 feet.
  • It logically goes up and down, in opposite direction of the changing ice sheets over the last 3 million years
  • The ice sheets slowly adjust to global mean temperature, which follows CO2 levels in close parallel.

Got it?: CO2; average global temperature; ice sheets, and sea level are all locked together in a physical relationship.

The last correlation is a stunner; at least it stunned me, when I stopped to let it sink in.

Dr. David Archer, an eminent scientist (and author of THE LONG THAW) looked at the work of another eminent glaciologist, Dr. Richard Alley, and produced the simple graph at the left. It plots a few known ancient sea levels against ancient temperatures. Admittedly the numbers are approximate.

It graphs 5 different points of historic sea level: 40 and 3 million years ago, 120,000 and 20,000 years ago, and the present day.

They fall reasonably on a straight line, which is what is expected if the amount of ice on the planet will change proportional to the average temperature on the planet. It cannot predict how quickly the adjustment will happen. (It might help to understand that  200,000 years is considered a “brief period” by geologists.)

What is stunning is the angle or correlation of the graph trend line. It indicates that with each degree C of change in the global mean temperature, that sea level changes by about 20 meters (65 feet). Just think about that; and recall that we have already had almost a degree of warming over the last hundred year, with lots more on the way. The current forecast is for a MINIMUM of 2 degrees C warming by end of century and most models show that we will get 4-5 degrees C, if we don’t take drastic steps to reduce greenhouse gases very soon.

Again, it could take centuries for that amount of ice melting to happen. The long periods of ice formation and melting happen over thousands of years. We are now definitely in a warming period as proven by the shrinking glaciers and melting Arctic ice cap, and the Greenland ice sheet. It is predicted that the Arctic Ocean will be ice free, some time in about two decades.  That has not occurred for at least 7,000 years and perhaps not in the last three million years. The added greenhouse gases are warming the planets temperature above the usual top end of the ice age cycle.

According to the pattern of last three million years (shown on that previous blog post) we would have started the long cooling phase towards the next ice age. Instead we are warming. If we melt all the ice on the planet( which has happened before, but not for about 40 – 50 million years), then global sea levels would be approximately 80 meters (265 feet) higher than today. That would swamp every coastal city. What we do not yet know is whether that will take hundreds of years, or thousands.  Presently the forecasts for this century range from as low as a meter (3 feet) of SLR, to as much as 5 meters (16 feet). There are two reasons that scientists cannot yet accurately predict how fast the ice will melt.

First, the geologic record is not accurate down to the level of individual years as mentioned above.

The second challenge is that we are now warming MUCH faster than during previous periods of abrupt climate change. According to our leading climate scientist, Dr. James Hansen, the Earth has warmed 20,000 times faster over the last century, than during the abrupt change 65 million years ago, when the dinosaurs were wiped out, likely as a result of an asteroid impact. While the cause of that mega extinction was different than the present situation, the rate of warming is the relvant comparison that he makes.

In other words. because the current warming, caused by the rapid rise in greenhouse gases, is happening 20,000 times faster than in nature, it is hard to say how fast the ice will melt, and the ocean will rise. There is no accurate precedent. But the models are getting better rather quickly, due to increasingly accurate measurements of how the ice is actually melting.

What the latest models do show is that sea level will continue to rise for at least 500 years, even if we stopped all CO2 emissions immediately.

While that 500 year lag time, may seem surprising, the earth’s systems move slowly, like changing course or stopping a big ship. One of the reasons that heat and ice melt will not stop for at least 500 years is that it takes up to 700 years for the oceans to fully change temperature, due to the fact that the oceans’ average depth is a few miles/km, and goes as deep as 35 thousand feet (12,000 km). The heat layers segregate, slowing change to a new surface temperature.

In effect, the ocean acts like a giant storage battery for heat. It has absorbed most of the extra heat, trapped by the greenhouse gases. That is a key reason that the ice will melt, and the oceans will rise, for centuries, or longer.

What we do over the decades ahead will slow or increase the rate of warming, and the rate of sea level rise. and can make a big difference for generations to follow.

New Orleans in the past and futureMonk by the Sea, Caspar David Friedrich

Stepin Fetchit with his friends

As our world does its curious minuet of collapse, the Great Dark Hope of 2008 has – for those who hadn’t noticed it already – fully shown he’s a 100% somewhat right-wing Republican with a tan to beat Boehner’s. (Have fun with puns there!)   It seems to be his modus-operandi, a kind of rope-a-dope routine in which he lets the supposed opponents shove the goal-posts a mile or two, then surveys the situation and offers still another 10 yards or more, and announces he’s made the needed compromise that gave the supposed opposition a bit, but not everything, and wasn’t that a sage thing to do as the sky did not fall as it otherwise would have.   A smooth operator as they might say, a real good one put over on America’s liberals et al.  Genuine Kabuki theater, though at this point the process has become as formally ritualized as said theater, the roles fixed in amber.

Big Timers indeed !

In the last few years there has been a cottage industry of books and articles analyzing the formative background of Mr. Obama, along with the shrill screeches from the Right – seemingly now a purposeful feint to distract from the con being pulled, as good old American liberals fell into line to protect their guy from these awful racist assaults – though in all the verbiage I saw, in PC America, I don’t recall any suggestions of Uncle Tom, or any of the other deep American places for what used to be called “the house nigger.”   It’s considered impolite to suggest that Colin Powell or now Obama have dutifully filled these historical shoes just as they are supposed to.   But Obama has certainly done so, and a simple glance at his background explains it readily:  he negotiated his black-white family circumstance, sorted out his adolescent identity crisis briefly with an Afro and supposed community organizing, and while opting visually for his black side, ideologically and politically he opted for the white.  Harvard, where he minded his manners and zipped into a nice job at the University of Chicago, did lawyering with a white firm, and got the nod to let his dark-skinned eloquence work its magic at the 2004 Democratic Convention.   It was all, well, kind of magical.

Listen up, Stepin !

And so this tabula rasa, with a perfect fill-in-the-blanks-yourself PR slogan, promised Change You Can Believe In, and was inserted into the White House, an antidote to the Bush trauma which sucked in the entire center-left-progressive spectrum of the country like a Hoover.  Confronted in 2008 with the banker’s self-made crisis, he backed Bush’s deal with The-Sky-Is-Falling Hank Paulson’s demand for 800 billion instant and unaccountable greenbacks, and once in office did whatever tap dance the Wall Street gang demanded.  After all, those he appointed to guide him were all from the offices of Goldman Sachs etc.    The alleged urgency of the moment masked this rightward lunge, and he carried on the Fred Astaire routine with his marks, the great unwashed American public, left side, which so wanted a resolution to the traumatic Bush years that they eagerly overlooked all the signs that their great hope was Bush squared.  They’ve continued this delusion up until very recently, though as Obama hints at succumbing to so-called Republican demands for shaving Social Security, Medicare and Medicaid, it seems even the most ardent of Obama fans are realizing they got taken to the cleaners in one of the slickest political scams of our history: there are no Democrats, the entire party has been bought, and, like Jews in Inquisition Europe, they’ve converted to being Republicans, and if they have any Democrat tendencies they keep them secret.

Fun in Athens

Meantime, on the other side of the pond, another Greek drama is playing out, and as any good Greek tragedy, the end is foretold and it is the playing out knowing the conclusion which makes it tragic.   There, following the clever set-up which Goldman Sachs (yes, them again… are the dots connecting yet?) engineered with the previous right-wing government to hide the country’s indebtedness (a sleight-of-hand bit of bookkeeping fraud which Goldman is apparently expert in doing) so they could join the Euro Community, things are now falling apart.  Pumped with Euro funds from the more or less healthy economies to the north, Greece went on a banker-encouraged spending boom, running up mountains of communal and personal debt, suckered into the wonderful consumer fantasy-land of the West, while the interest rates climbed.  And now, if they did little else than work their butts to the bone, they will never pay off the interest, not to mention the principle, on the loans so sweetly given to them.   Today, the banks want their pound of  Greek lamb and some nice embellishments to boot.  And they sent their poodle, Standard and Poors, allegedly a disinterested ratings agency, to inform the EU that the holy banks would not tolerate having to absorb any losses, period.  Or else, as in 2008, the sky would fall !   And promptly the politicians scrambled to please these monetary masters of the universe.   Of course, next in line for this treatment are Portugal (bonds last week reduced to “junk”), Ireland, Spain, and Italy.

All of this is occurring thanks in part to the introduction of the trans-European monetary unit, the Euro, which doesn’t allow individual countries devalue their currency, but sticks them all with the same “value.”   Interestingly, I met, about a decade ago, one of the originators of this idea – Robert Mundell, Nobel Prize winning economist, University of Columbia professor, who, along with some others cooked up the logic for having a single currency.

Robert Mundell, Nobel Laureate, chameleon

I met Mr Mundell in Rome, somewhere back in the late 1990′s or 2000 or so.  One thing led to another, and I was introduced to a friend of his who wanted to do a film based on the painter Masaccio – a Renaissance period piece.  The guy gave me his script, which was a turgid piece of utter tripe.  But I did get to visit Mundell’s new home, an old castle a short way out of  Siena.  He was thinking of making the former horse-stable/barn area into a kind of studio.  I think I saw him 3 or 4 times.  Each time he was what I would charitably call “drunk.”  I know in scientific statistical terms this is not a fair sampling, but on the more flexible standard of human observation, I’d have to guess this was kind of normal.   At all events, he was/is considered the founder of the Euro, and I would be curious to see what his view on this is now.   Given his apparently lousy sense of dramaturgy, his evident gullibility to the kinds of people who show up when riches fall in your lap and his liquid habits, I certainly would not give his intellectual ideas too much credibility, Nobel or no.  (We note Mr Obama is a Nobel Peace Prize winner….)

My guess is that the Euro and the EU are a kind of intellectual/Ivory Tower construct, a nice theoretical idea which in some kind of perfect world seems a good idea.  In post-WWII Europe something that would entice these differing countries to fight less and get along more must have been a nice lure.  Certainly from the pedestrian tourist viewpoint it is nice not to have to change money at every border, and on a vast business scale it also makes big money shifts easier and less costly.  However the idea was more that by having a shared currency everyone would (have to) behave similarly.  Anyone who has lived in Spain or Italy or Portugal or Greece would know that shifting the coinage in your pocket is not going to change your cultural behavior and turn you into a German.  But, behind the idea of the Euro that was the idea.  And it has foundered on the rocks of reality.  Of course that reality is also rather distorted by the manipulations of the bankers, who for now have figured out how to squeeze blood money out of the rocky terrain of Greece.

And so anger flows on the streets of Athens and Thessalonika, and it builds in the solid burghers of Germany who figure they are the ones paying for this folly.   And, if the bankers get their way, as in the S&P notice, they will.  However, whether the twists and turns take some more weeks or some more months, it appears the most likely outcome is that Greece will default on its debts, leave the Euro, and we’ll have another major economic crisis as the banks absorb their losses.  If you don’t know, if we “follow the money” we find that German and French banks are deeply tied up in the Greek crisis, having loaned them multiple billions of Euro.  They did so by borrowing money from American banks, who were flush with their 800 billion bail-out of 2008, and also a Federal “preferred” window in which they were able to obtain money at a half a point interest rate and turn around and loan it to European banks for 4 or 6%.  Not a bad deal.  But that means that the Greek crisis, zipping through Germany and France (as well as other Euro banks), then moves across the Atlantic to American banks.  Hence the stamping of banker feet insisting they will not take a hair-cut.  What goes round, comes round, but bankers in this day insist on privatizing massive profits and socializing massive losses.   They got away with it in 2008, and they are trying again now.

At the rate things are going, it would seem Mr Mundell’s dream is turning into a nightmare, and soon the Euro will come crashing to the ground, as a sequence of debt-ridden countries, the dubiously coined PIGS, default and pull out of the Euro-zone or are kicked out.

Masaccio, Brancacci Chapel, Firenze

The story is more or less unchanged in history.  I figure I am the figure here, to the lower left, and off screen there are billions of others with me.   While for most of us it seems fantastical, our “currency” is merely a symbol, be it dollars or yen or renminbi or drachmas or Euros.  What it symbolizes is a mode of social trust, and when that trust evaporates – as it did, for example in Weimar Germany, not so long ago, or the Soviet Union much more recently, the money means nothing, and a wheel-barrel of cash can’t buy a loaf of bread.  Our societies are rapidly eroding that trust, as we see bankers who for their “work” make 4.9 billion dollars in a year, while those who “work” at less abstract levels all day long, make barely enough to survive – whether in rich western and Asian countries, or those mired in poverty in Africa, areas of Asia and South America.

Ancient Greek warriorModern day Greek warriors

[Little note:  Mr Obama is said to be a student of Lincoln, but perhaps it is Lincoln Perry, a.k.a. Stepin Fetchit who is his mentor rather than the other one we were led to believe it was.  I can say this: Barry ain't no Abraham.]

Tower Bridge, London

London.  Jet-lagged.  The view out my friends’ penthouse shows the four-year lapse since I was here: to one side, beyond Tower Bridge and the now dwarfed London City building, rises a Renzo Piano skyscraper, to be the tallest in London, a thousand and some feet.    Out another window in the City is the nearly-completed foil to Foster’s Ghurkin, a vertical slab to counter its bulbous form.  And there are too many other leaps of hyper-modernity to tally.  The South Bank, a dank and presumably dangerous area of my youthful stays in London – 1963 -  and still similar when I stayed in in 1978 and then again in 80-81 – then a place of abandoned warehouses, narrow alleys, cheap working-class pubs and drugs has been subject to total urban renewal and is now home to swank apartment buildings,renovated warehouses with costly lofts, glittering office towers, boutiques, classy restaurants, and a generalized Disneyfication which runs from the London Eye ferris wheel across from the Houses of Parliament all the way down river past Tower Bridge to the failed Millennium Dome.   It is a place of mass tourism, with such gems as the National Theater (an architectural bit of 1970′s ugly “brutalism”), the Tate Modern made of the revision of a massive mid-20th century power station, the hokey half-timber replica (sort of) of Shakespeare’s Globe theater, and endless pubs, restaurants, shopping malls and the like lined up along the Thames, crowded with tourists and Londoners.  The only risk of the neighborhood remaining is of joining the lemming herd buying the costly baubles on offer:  15,50 sterling to enter the Tate’s Miro exhibit, 3.75 quid for a beer, or 4 for a Brit style hot-dog.  A one-day Tube pass for Central London runs 6.50 Sterling, or 10 bucks.  Though it would cost more if you merely took 2 short rides.   (A pound is $1.40 or so these days.)  Everything else is similarly scaled, meaning to enter into the consumerist wallow assumes a very healthy income, or a willingness to run up a pile of debt.  I suspect it is this latter, which merely emulates what the large scale economy did on a personal level. I took a long walk today, a Sunday, and avoided buying anything, though mingling with the many tongued mass was inescapable.  Elsewhere across the city – in Chelsea and South Kensington near the mythic consumer temple of Harrods, or in Oxford Circus, or Soho, or Portobello Road, or myriad other magnets of this vast city, similar hordes checked out the things on offer, usually for a stiff price.   Thankfully the major museums remain, as yet “free” though large signs urge that you donate 10 Pounds or so at each doorway.  Few seem to do so.

On the way back, after a calming stop at Southwark Cathedral during a service, I passed over the once-wobbly Foster-design Millennium footbridge towards St. Paul’s done, and on then through parts of the Sunday becalmed City, the financial district.   It is surely this area which has accounted for the flush of wealth which saw this transformation of London come to pass.  Frankly Britain doesn’t make much anymore – it’s industrial base is withered, a ghost of its once busy self (something readily noticed in the cities of the Midlands and north) and while tourism is a major economic factor in London’s economy, it doesn’t nearly make the kinds of money which has essentially rebuilt the city in the last 2 decades or so.  It has been the financial industry which did it – though as elsewhere this rickety house of cards, though capable of generating wealth, does so in curious ways which seem to side-step most of the community.  And it does as elsewhere in the world, warping the economy so that prices shift to match the sudden new wealth, however unevenly distributed.  So that a friend of mine, living in her family’s house in the Portobello area, which some decades ago was run-down, a haven for artists, musicians, drug-users and the like, now finds herself surrounded by investment bankers and their BMW’s and other accoutrements.  The area is now busy with fancy restaurants, costly antique stores, boutique fashions and the rest of what the wealthy new inhabitants “need.”   The locals who previously were the neighborhood find themselves forced out by a silent economic dictum.  And now, with the new government of Cameron and Clegg, local amenities like the public library, swimming pool and other “commons” are being closed down or privatized.  Luckily my friend, at least for the moment, can hold on to her house, the value of which has sky-rocketed, as property taxes for residences in London have a cap on them, such that whatever the market value, the top rate is as if it were worth 350,000 pounds.  Or if unoccupied then it is zero.  So for the moment she is able to manage, though, as she has no job and lives frugally, friends suggest she should sell out.  I suppose her place is “worth” some million and more quid.  She insists on staying.

Southbank shopping arcade Millennium Pedestrian Bridge

Curiously on arriving here my hosts had just returned from the Edinburgh Film Festival, since a few years moved from its old slot in the midst of the August Edinburgh Fringe Festival, which in the decades since I was there last has ballooned into a massive affair in which the film folks seem to have gotten lost.  They now do their thing in June.  My friends brought with them a DVD of a film they hadn’t managed to catch, Charles Ferguson’s Inside Job.  It is a very well done “talking head” film, cross cutting nicely done such heads, aerial over-views of the canyons of Manhattan, and news footage (most more talking heads, though some of prostitutes and coke snorting), all done in a brisk manner, quickly delineating this heist of the new century.   It back-tracks in history to the Reagan first steps towards deregulation of our economic mechanisms, all in the name of the theory that the “free market” is self-correcting, and in effect always comes up a winner.   Then to the Clinton-signed nullification of the Glass-Stegal Act which long ago – in the 30′s – limited the kinds of investments banks could make.  And then on through the wild west ride of the last several decades, with bubbles growing and bursting – dot.com etc. – on up to the 2008 housing mortgage bust.  The main characters are put in the place – Greenspan, Bernanke, Paulson, Geithner (the whole revolving-door system in which members of Goldman Sachs and other Wall Street titans go in and out of government service to the Fed or Treasury, rigging things for themselves) – and the steps by which the end-times Bush collapse came to be.  Then Paulson, Sec. of the Treasury, announced with a trembling Bush at his side that the global economy would simply collapse if the Federal government didn’t pony up a mere 800 billion dollars to the banks. Now!  No questions asked!   He did as commanded, and his successor, Mr Obama has done likewise, acquiescing to every wish of our financial titans.   The reason is simple: the financial community some time ago simply bought the entire governmental system – the Congress, the Executive and the Judiciary.  Hence, though as Inside Job clearly points out, while vast frauds and crimes were the root source of the economic crisis of 2008, virtually no one has been prosecuted or imprisoned, short of the sacrificial goat of Bernie, a small-fry Ponzi-schemer with good connections.   On watching the film clips of the sweaty, inarticulate likes of Angelo Mozilo (head of Countrywide mortgage outfit), or Lloyd Blankfein (CEO Goldman Sachs) during the mild Congressional questioning one could only think of mafioso dons, who these characters looked like, and seemed to act like, with their hands caught in the Fed’s fat cookie jar.   However, today they still masquerade in the same banker’s pin-stripes rather than in the other kind they properly should be wearing in the Big House.


Southwark Cathedral

Today, across the English Channel, comes the news that the French government is busy scrambling to salvage the nation’s banks from the effects of the looming Greek default.  As it happens they (along with other European banks, and by extension America’s – since the US banks loaned heavily their cheap .5% Fed loans to them for a far higher rate, a true cash-cow if ever there were one) are deeply enmeshed in the Greek situation, and should Greece default rather than bend to the extortionist’s demands of the banks, suddenly many a European bank will be minus hundreds of billions of Euro.  Poor dears.  Of course it is supposed to be that we should tremble at this word.   (Note:  Goldman Sachs was deeply involved in teaching the at-that-time right-wing/conservative government of Greece how to cook the books to meet EU community entry requirements.  Doubtless the same Goldman Sachs, knowing the truth, bought insurance on the collapse and will make a bundle when it happens.)  So the dominoes hidden from sight continue to tumble and the bankers and governments scramble to keep the illusion afloat.  And perhaps for some more months, or even a year or two, they’ll manage to juggle enough to do so.  Or perhaps not.

When it is all done, perhaps the Tube will cost a lot less since it is difficult to extract money from those with none of it.  Unless, of course, you’d like to borrow as some pleasant rate.

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