Showing posts with label The Shock Doctrine. Show all posts
Showing posts with label The Shock Doctrine. Show all posts

Sunday, March 18, 2012

Layer 530 . . . The Questioning of Capitalism, and Culture after the Credit Crunch



There was an interesting piece in the Guardian yesterday which readers of Layer 528 might want to pick up on. It sheds some more light on the state of post-apartheid South Africa, and the reasons why a country that so many of us had such great hopes for is so fucked. You just have to wonder what Mandela and Tutu make of it all. Are they writing about it now? And do their views carry any weight?

On page 5 of The Review, in "The Week In Books", John Dugdale writes about Nadine Gordimer, who was in London this week.
What Gordimer, 88, was keen to talk about was censorship, and a current threat to freedom of expression in her country, which she called "an updated version of the gags under apartheid". 
One element of this is a media tribunal that requires journalists to seek permission before, for example, investigating a government minister's activities.
Then there is the Protection of State Information bill, which clamps down on whistle-blowing. For Gordimer, both moves are designed to shield an ANC elite who have "betrayed all they fought for".

As pointed out in the recent blog, the betrayal took place almost from the outset, and it continues to this day - thanks to the stupidity, greed, selfishness and ignorance of those who were supposed to be the leaders and liberators.

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Also in this weekend's Review is a brilliant whole-page article by Marilynne Robinson, which is almost too depressing to read. The USA, like South Africa, was supposed to be a new light in the world - a beacon of hope which showed the way forward for people to overthrow oppression and colonialism and build a society based on freedom and justice. Instead, it's fucked.

Culture after the credit crunch
The financial crisis has not led to a questioning of capitalism. Rather, hard times have brought even sharper attacks on 'big government'. In the US anything public equals 'socialism'
 http://www.guardian.co.uk/books/2012/mar/16/culture-credit-crunch-marilynne-robinson
Fear is the motive behind most self-inflicted harm. Western society at its best expresses the serene sort of courage that allows us to grant one another real safety, real autonomy, the means to think and act as judgment and conscience dictate. It assumes that this great mutual courtesy will bear its best fruit if we respect, educate, inform, and trust one another. 
This is the ethos that is at risk as the civil institutions in which it is realised increasingly come under attack by the real and imagined urgencies of the moment. We were centuries in building these courtesies. Without them "western civilisation" would be an empty phrase.
Austerity is the big word throughout the west these days, with the implicit claim that what ever the Austerity managers take to be inessential is inessential indeed, and that what ever can be transformed from public wealth into private affluence is suddenly an insupportable public burden and should and must be put on the block. 
Everywhere the crisis of the private financial system has been transformed into a tale of slovenly and overweening government that perpetuates and is perpetuated by a dependent and demanding population. This is an amazing transformation of the terms in which our circumstance is to be understood. 
For about 10 days the crisis was interpreted as a consequence of the ineptitude of the highly paid, and then it transmogrified into a grudge against the populace at large, whose lassitude was bearing the society down to ruin.
Austerity has been turned against institutions and customs that have been major engines of wealth creation, because they are anomalous in terms of a radically simple economics. [See all previous blogs on Disaster Capitalism, Chicago-School economics, The Shock Doctrine and Naomi Klein.]
As a professor at a public university I feel the effects of this. Of course legislators are also state employees, but for the moment they are taken to act in the public interest when they attack the public sector. If they were to tell us taxpayers how they spend their time, fiscal demolition would account for a great part of it. 
The phenomenon is national, indeed global, since every entity with leverage on any other is bringing the same sort of pressure to bear. The countries we now call "developing" have dealt with this for many years – as often as the international financial institutions have decided that their economic houses need to be put in order. Their cultural and political integrity has been overridden whenever these agencies have invoked the supposedly unanswerable authority of economics. And now the west is seeing its own cultures and politics, indeed its modern social history, erased on these same grounds.

[Of course the 'agencies' and institutions referred to here are the International Monetary Fund, the World Bank and the World Trade Organisation.]

It is this supranational power . . . that failed us all in fairly recent memory. It has emerged from the ashes with its power and its prestige enhanced even beyond the status it enjoyed in the days of the great bubble. The instability and the destruction of wealth for which it is responsible actually lend new urgency to its behests. 
This makes no sense at all. Certainly its authority with the public aligns badly with any conception of rational choice, which is supposedly a pillar of this self-same economic theory. It can proceed confidently, and moralistically, in the face of common sense and painful experience because it is an ideology, the one we are supposed to believe was the champion of freedom and prosperity in the epic struggle called the cold war. 
If there was such a champion, might it not have been freedom itself, as realised in the institutional forms of democracy? That is not how the story has been told. We are to believe it was an economic system, capitalism, that arrayed its forces against its opposite, communism, and rescued all we hold dear. Yet in the new era, market economics – another name for the set of theories and assumptions also called capitalism – has shown itself very ready to devour what we hold dear, if the list can be taken to include culture, education, the environment, and the sciences, as well as the peace and wellbeing of our fellow citizens.
The wealth that was once frozen in appreciated value and thawed at the discretion of the owner, in homes, notably, is now, increasingly, liquid in the hands of international financial institutions. 
To project debt forward as the Austerity mongers do is to assume a predictable future economy, essentially a zerosum economy which can only increase wealth by depressing costs – wages, safety standards, taxes – that is to say, by moving wealth away from the general population. This prophecy will fulfil itself as education is curtailed and "reformed" to discourage intellectual autonomy, and so on. The new sense of insecurity, the awareness that the rules have suddenly changed, has a meaningful segment of the population furious at government and desperate to be rid of the institutions that enable a culture of innovation.
In any case, in America an abstraction called capitalism has truly begun to function as an ideology. The word is not included in the 1882 edition of Webster's dictionary, and in the latest Oxford English Dictionary capitalism is simply defined as "a system which favours the existence of capitalists", as the self-declared socialisms of western Europe have always done. 
In contemporary America it has taken on the definition, and the character, Marx gave it, and Mao, and all the pro-Soviet polemicists. This despite the fact that Marx did not consider the United States of his time essentially capitalist. This despite the fact that the United States as a society is structured around any number of institutions that are not, under this definition, capitalist. 
Suddenly anything public is "socialism", therefore a deviancy, inevitably second-rate, and a corruption of, so to speak, the public virtue. If I could find any gleam of intelligence or reflection in all this, or any sign of successful education, I would be happy to admire it, so passionate are my loyalties. Failing this, I am left to ponder again the fact that this post-Soviet America has turned against its own culture and has seen cleavages in its own population that can only rejoice its most fervent ill-wishers. This is an ideal atmosphere for the flourishing of Austerity, punitive yet salvific, patriotic in its contempt for the thought and the values of those of its countrymen who have doubts as to its wisdom, especially if they express their doubts in the press or at the polls.
At very best there are two major problems with ideology. The first is that it does not represent or conform to or even address reality. It is a straightedge ruler in a fractal universe. And the second is that it inspires in its believers the notion that the fault here lies with miscreant fact, which should therefore be conformed to the requirements of theory by all means necessary. To the ideologue this would amount to putting the world right, ridding it of ambiguity and of those tedious and endless moral and ethical questions that dog us through life, and that those around us so rarely answer to our satisfaction. 
Anger and self-righteousness combined with cynicism about the world as he or she sees it are the marks of the ideologue. There is always an element of nostalgia, too, because the ideologue is confident that he or she is moved by a special loyalty to a natural order, or to a good and normative past, which others defy or betray.
The march of Austerity, with all that means, is international. Historically there is nothing new about it. It is an assertion and a consolidation of power, capable of cancelling out custom and social accommodation. It claims the force of necessity. And when necessity is to be dealt with, other considerations must be put aside. We in the west have created societies that, by historical standards, may be called humane. We have done this gradually, through the workings of our politics. Under the banner of necessity it can all be swept away.


Tuesday, May 4, 2010

Layer 295 . . . Bunting, Bankers and the Financial Doomsday Machine

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The Casino

I've been working on a metaphor, and a way of explaining the way in which our economy has gone from being a workshop to being a casino, and it goes like this.

Imagine a merchant bank is holding a large stash of cash which it can either invest in building a factory that will make useful things and yield modest profits over many years, OR it can use that stash to build a casino, in which other merchant bankers from around the world can come and place bets. The City of London, which is the name of this particular merchant bank, made a choice to build and operate the casino, and also spent all its profits on placing bets there itself, having decided that low-risk low-returns manufacturing was just too boring and too unprofitable to bother with. They wanted big bucks and they wanted them instantly.

Some of the players who came to the casino did well, and others did badly. Goldman Sachs and Barclays did well; Lehman Brothers, RBS and HBoS did very badly indeed.

The owner of the casino was always a winner, and always made big profits, as long as it could pay for the upkeep of the casino. But instead of saving some money in reserves 'just in case', it decided to borrow money at low rates of interest whenever it needed to pay utility bills etc - in order that it could keep on placing big bets and winning big. But there came a day when it needed to pay some large bills and suddenly found that no-one was lending money any more on account of the collapse of a massive worldwide pyramid-selling (Ponzi) scheme, which had gone completely belly up. Nobody trusted anybody else not to go broke, so no-one was willing to lend money.

The big banks that gambled in the casino ran out of money for the same reasons.

The casino owners had three choices - either declare themselves bankrupt, put the casino up for sale, or go cap in hand to the government to borrow the huge amounts of money they now needed to stay solvent.

The government was a very stupid government and was also very afraid of the casino owners and their mafia friends, who had been been keeping the government sweet with some tidy sums in taxes and lots of friendly back-slapping.

The government could, and should, have used that moment to buy the casino for a very small sum of money, in the name of its citizens, but instead it smiled at the bankers and told them that of course they could have as much money as they wanted or needed, at very low rates of interest, even though the government then had to go and borrow the money elsewhere at high rates of interest, which looked likely to become even higher as time passed. And from then on it was business as usual. The only losers were the people the government was supposed to be serving - us - who were then responsible for paying off the trillions that the government had loaned on behalf of the casino owners and players.

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I know for sure that Madeleine Bunting is an admirer of Naomi Klein and has read all her work on Disaster Capitalism because I saw Madeleine introduce Naomi on the stage of the QE Hall on the South Bank at the time of the publication of The Shock Doctrine - one of the all-time key books on economics, finance and capitalism. If anyone still hasn't read it, then they're not really bothered about what's been fucking up the planet, and who's really responsible for it, these past 30 years. Bear in mind that The Shock Doctrine appeared in print just before the shit actually hit the fan a couple of years ago.

Madeleine's columns in the Guardian continue to put the spotlight on the really important issues we need to deal with as a matter of urgency.

http://www.guardian.co.uk/commentisfree/2010/may/02/banking-reform-election-agenda

Finance is responsible for this savage new era. But it's off the electoral agenda

The economic future will be painful, yet the public and their leaders show no appetite for wrestling the financial leviathan responsible

We had one small question on bankers' bonuses in Thursday's economic debate and some halfhearted discussion of banking reform before moving on to a subject that arouses far more passion – immigration. Bankers' bonuses are the very least of it – the relatively insignificant tip of an iceberg – a radical restructuring is urgently necessary, argues Better Banking, the New Economics Foundation's manifesto published last week in a bid to try to get this issue on to the agenda. But the conclusion is clear; there is no great anger or appetite in the British public or their leaders for a wrestling with the leviathan financial system which is sucking the lifeblood from our political economy. That time may come but right now, all that everyone wants is for everything to go back to the way it was in 2007: booming property prices, rising debt levels. Faced with an irritating problem of dry rot, the homeowner is resolving just to patch up the visible bits and pretend the rafters are not crumbling and the ceiling is not going to fall in.

If you think that is a bit of hyperbole, read the Financial Times's Martin Wolf on the "financial doomsday machine", or the head of the Financial Services Authority Adair Turner's thoughtful speech in March, when he concluded: "We need to challenge radically some of the assumptions of the last 30 years", which have been "deep-rooted drivers of financial instability". Wolf is no leftie, but he declared recently that "a large part of the activity of the financial sector seems to be a machine to transfer income and wealth from outsiders to insiders while increasing the fragility of the economy as a whole". Just in case you were wondering who the outsiders are, it's you and me – our pensions, our savings, our mortgages, feeding this bloodsucker.

You might have thought that the treatment meted out to Greece, Portugal and Spain in the bond markets would have prompted more questions about how the financial system works. All the more so since this is the nightmare scenario that George Osborne has been dangling in front of the electorate. Who are these credit ratings agencies who are plunging the continent into crisis?

But no, the irony is that while we are immersed in an electoral process which is all about bringing those in power to account, the unaccountable financial system that is responsible for the painful years which lie ahead – of unprecedented cuts and the political conflict that will result – goes largely unchallenged. Politicians are left ignominiously to beg or reproach these credit ratings agencies – as both Portugal and Brussels did last week. (Agencies now described by economist Paul Krugman as "deeply corrupt", still wielding huge power despite a track record on Enron and sub-prime which has revealed an appalling lack of judgment.)

You might have thought that the spellbinding moment of Goldman Sachs executives fumbling through their files to find answers in the US Senate hearings might have prompted more outrage at the duplicity and self-serving corruption entrenched in the financial system. As Turner admitted a year ago, "British citizens will be burdened for many years with either higher taxes or cuts in public services – because of an economic crisis ... cooked up in trading rooms where ... many people earned annual bonuses equal to a lifetime's earnings of some of those now suffering the consequences."

The gross injustice of it is one reason for anger, but there is another, even more important. David Harvey, author of The Enigma of Capital, was in the UK last week on a timely promotional tour; his central thesis is that capitalism is inherently crisis-ridden, and that its crises mutate rapidly. Eighteen months ago we had a debt crisis of the financial sector, now we have a public sector debt crisis spreading across Europe. That has prompted a political crisis across the eurozone, and particularly in Germany and Greece; voters in the former are incandescent about lending their money, while in the latter it is rapidly becoming a crisis of the state itself as the unions declare a general strike for this Wednesday, and protesters had to be dispersed with teargas over the weekend. Average Greek incomes have dropped 20% with low- and middle-income earners worst affected.

The political fallout of crisis-ridden capitalism in the 1930s was precisely what politicians and policymakers wanted to prevent as they constructed the postwar Bretton Woods financial system: slow and steady were its primary requirements, and between 1945 and the mid-70s it led to better average levels of growth than the boom and bust cycles of the more volatile decades which followed. The great poison of lightly regulated capitalism is as much about volatility as it is about inequality; it is so destructive of the social fabric, ratcheting up unemployment, destroying neighbourhoods, provoking tensions which feed into political extremism and violence.

But for the last 30 years such insights were marginalised by efficient market theory which argued that left to themselves, markets were self-equilibrating and stable. This was pure fantasy, yet it seduced politicians and electorates, who got the illusion of economic growth they needed, while the fantasy generated millions which poured into the pockets of an elite.

Curiously, the one group who really understood the fantasy were those who were peddling it. The US Senate investigation into credit ratings agencies has just released a mountain of documents which reveal a mind-boggling insouciance. One internal email at Standard & Poor's in December 2006 read: "Ratings agencies continue to create an even bigger monster – the CDO [collateralised debt obligation] market. Let's hope we are all wealthy and retired by the time this house of cards falters." And indeed many of them are; profitability at the agencies soared in the early years of this decade.

This election is a kind of lull before the storm. While excited discussions consider the potential for electoral reform, the real story of the next few years will be the savage dismantling of social democracy and a new era of industrial strife organised via Twitter. Then there will be plenty of public anger, but the bankers and financial analysts will have got what they wanted – wealthy retirements and fortunes salted away in the country homes from which they survey the wreckage.
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Wednesday, September 2, 2009

Layer 188 The Shock Doctrine, Michael Moore, Friedman, Capitalism, Enron, and the Smartest Guys in the Room

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The Shock Doctrine 
 
The Guardian's teenage previewer of last night's The Shock Doctrine (on More Four), which was every bit as good as anticipated, also wrote some gratuitous, supercilious and snide comments about Michael Moore, a man who's been incredibly original, funny and brave as a film maker in his attempts to expose the shit that happens in America thanks to corporate and individual irresponsibility, greed and stupidity, guns, drugs, politicians, the power of money, etc. 
 
Moore has a new film that's soon to be released – check it on http://www.capitalismalovestory.com/ 
That's right folks – Capitalism. A Love Story. Michael's angry about ordinary people being forced to hand over billions of dollars to the fat cats and the minions that caused the world financial crash of 2008 - and he wants the money back!
 
For the first time in living memory capitalism is under serious scrutiny in the USA, and possibly in the UK as well. Back in the 90's there was a common assumption that the fall of communism had ushered in “the end of history”, as some bozo called it. It was meant to be the final and irrevocable triumph of the unfettered free market, 'small government', globalisation, etc. Well it looks like history might just be back. 
 
The genius of Naomi Klein has been to piece together a grand narrative that shows with enormous clarity and great insight the political and economic history of the world in the latter part of the 20th Century and the beginning of the 21st. Beginning with the secret American experiments with 'brainwashing' and torture techniques in the 1950s, and ending with Iraq, and the great financial implosion of 2008. 
 
The story takes in Milton Friedman's insidious and highly successful efforts to make war on Keynesian economics and social democratic government with his development of 'monetarism' at the University of Chicago, and the way in which he aided and abetted the CIA and Nixon in the plot to overthrow Allende's socialist government in Chile. 
 
Klein's narrative moves on to show how Friedman then set out to promote his Disaster Capitalism in other countries in South America, often by 'training' their young economists in Chicago – countries where fascist military dictatorships overthrew left-leaning democratic governments. For all of that, and for his 'advice' and support for undemocratic 'shock doctrine' political upheavals in Russia, South Africa, and yes – the UK - the man eventually received a Nobel Prize for economics. Fucking amazing.
 
Most staggering of all Klein exposes the way in which Bush and Rumsfeld used the 'shock' of the Twin Towers to inflict military conquest on Iraq, in spite of there being no demonstrable links with the perpetrators of 9/11. The scale of the 'outsourcing' of the combat and the so-called reconstruction has been truly unbelievable, with untold and unaccounted for billions of dollars handed over to American corporations with virtually no oversight and definitely no tendering process. 
 
The film shows Klein speaking to a variety of audiences, and hits home her main point which is the need to expose the myth that capitalism and globalisation is a benign doctrine that conquered the entire planet because of its beauty, truth, logic and inherent justice. The truth is that the entire planet has been ravaged and raped by over-mighty corporations driven by crazed megalomaniacs and oligarchs that busted into countries around the world after the doors had been beaten down by armies that battered, tortured and killed on the direct orders of mad politicians and supine parliaments. 
 
In some countries, of course, like the UK, there was no need to do any battering – Thatch willingly embraced these ideas – directly from Hayek (Friedman's guru), as it happens – and set about dismantling social democracy: selling off state assets for peanuts, cutting social spending and public services, passing anti-union legislation, deregulating capitalism and the banks, etc, etc. If anyone tried to get in their way – well Mags had no hesitation in sending in the cops to batter the miners into submission and bust their strikes. A lady with a mandate, you see.
 
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The Smartest Guys In The Room

Immediately after The Shock Doctrine last night More Four screened a documentary called The Smartest Guys In The Room, which is a brilliant expose of the Enron Corporation and the scandal of its methods, its phenomenal growth, and ultimately its spectacular bust. Quite possibly the greatest capitalist disaster of all time – millions of investors were scammed out of their life savings and financial wellbeing by a bunch of lying, greedy bastards that were the biggest contributors to the Bush election campaign. But then came 2008, and the collapse of the entire bubble created by Wall Street and the City of London through the use of massive amounts of unsecured credit, over-priced property, Ponzi schemes, etc. 
 
The insane thing is that most people are still unaware of what went on, who was responsible and how they're still getting away with it. In fact it's just about business as usual in the latter half of 2009, except for the fact that very few poor people can now get any credit, and hundreds of small businesses have already gone bust as a result of credit facilities being withdrawn. Hence the massive rise in unemployment. The City Boys are even back on their fat bonuses and huge salaries.
 
Hopefully Moore's film deals with many of these issues. The film about the Shock Doctrine ended with Klein pointing out that in spite of all they'd done to the world's financial system the City Boys paid themselves 18.4 billions dollars in bonuses in 2008. She also mentioned that September 15th is the first anniversary of the collapse of Lehman Brothers, which arguably triggered the near-collapse of the entire system. This was a worldwide crisis directly attributable to the ideology of deregulation and privatisation. This ideology has caused a massive transfer of wealth from the poor to the rich. And yet they carry on getting richer and richer, whilst the jobless become more and more destitute, in every country on earth. 
 
Naomi Klein's final message is that the only way in which things will change is if we, the people, go out there and make them do it. 
 

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Murdoch and the BBC

Jonathan Friedland wrote an excellent piece in the Guardian this week about James Murdoch's recent speech:

Don't let Murdoch smash this jewel. The BBC must act to save itself


Rupert's son is bent on continuing the war his father started. But he'll find Auntie matches the NHS in public affections

"Credit where it's due: the free-market right is nothing if not brave. Fainter-hearted souls would have spotted the imminent first anniversary of the collapse of Lehman brothers that started the global financial crisis and decided that now was not the moment to trumpet the case for unfettered private enterprise, free of meddling regulation. But the evangelists for turbo-charged capitalism are made of sterner stuff. With the American conservative assault on Britain's "Nazi" and "Orwellian" National Health Service still fresh in the memory, a leading US free marketeer has trained his sights on another British institution: the BBC.

He is James Murdoch whose weekend MacTaggart lecture was a 39-minute plea for comprehensive deregulation, warning of the dangers of state interference in the "natural diversity" of the media industry. Of the recent history of deregulation, with its catastrophic consequences for the world's economy, there was not a mention.

Nor did he detain his audience at the Edinburgh television festival, sponsored by the Guardian, with a declaration of his own interest in the subject. He spoke as if he were a mere policy wonk, rather than the heir to a broadcasting empire that would make billions if he had his way and the BBC were cut down to size. This was like a fox arguing that the henhouse doors be thrown wide open – not for his own sake, you understand, but for the good of society."

http://www.guardian.co.uk/commentisfree/2009/sep/01/bbc-james-murdoch-new-media..

Tuesday, September 1, 2009

Layer 187 Persuading, Whining, Remuneration, Education, the Shock Doctrine, C4 and the BBC.

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The Guardian today carries a report on what General Stanley McChrystal has been saying about the war in Afghanistan. In it they actually use the phrase 'winning hearts and minds', but for some reason fail to point out the exact parallels with what happened in Vietnam. It then goes on to say,

The basis of McChrystal's assessment is contained in guidelines he sent to troops last week in which he said: "The conflict will be won by persuading the population, not by destroying the enemy."
Does this mean he's guiding his troops towards less shooting and killing and rather more engagement with the Afghans in Socratic dialogue? Less blowing to smithereens and more dialectical debate over a cup of tea or coffee?

It's really incredible that serious people can still speak as though they're dealing with a bunch of stupid people who simply need to be 'persuaded'. In any case, how on earth can he say they need to be persuaded without saying what they need to be persuaded towards – presumably the American Way, a neo-conservative world view, an anti-Taliban ideology, etc. Good luck with all of that, McC. Though it's hardly the job of a mere soldier to do what politicians obviously cannot do, for all their efforts, and all the billions spent on propaganda.

http://www.guardian.co.uk/world/2009/aug/31/afghanistan-mcchrystal-strategy?CMP=AFCYAH

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The new Yahoo front page has a news panel that enables readers to click on the headline stories for The Guardian, The Telegraph and The Mail, as well as Yahoo. I'm now tempted to just click and find out what the Mail is publishing. Here's what my first click brings up:


'I've been treated like the Bulger murderers': Baby P social worker whines about her sacking
What do we make of this? Well, it's a bit rich to describe Sharon Shoesmith, ex-director of Haringey's Children's Services department, as a social worker, especially when it was her lack of experience and expertise in social services and child protection that caused a lot of her difficulties in the first place. A social worker was what she was NOT. Not ever. Sloppy journalism there.

Secondly, is this what we'd call objective reporting - to say that she's “whining”? It sounds very much like she probably is, whether or not she has cause to. But this is supposed to be objective reporting, in a 'serious' newspaper?

What her solicitors are saying is that she's been unfairly dismissed, and that Ed Balls had no more right to 'interfere' in her employment situation following the death of Baby P than Michael Howard (remember him?) had to 'interfere' in the sentences given to the murderers of James Bulger.

Excuse me? Is this supposed to be helpful to Shoesmith, I wonder – to liken her position to that of proven baby killers? The Mail then goes on to say -

Ronnie Fox, an employment law specialist with City firm Fox, said she could expect a payout of more than £1million if the unfair dismissal and sexual discrimination claims claim are successful.
He said: 'The starting point is what she would have expected to earn during the balance of her career.'

As Mrs Shoesmith earned £133,000 a year when she was sacked, she could have earned another £1.3million before retiring at 65. Her pension entitlements could potentially add another £1.5million.

She is claiming £133,000 - a year's notice - in the breach of contract High Court case.
Presumably we can expect Ms Shoesmith, if she wins her case, to then begin campaigning on behalf of the hundreds of headteachers that bureaucrats like her have squeezed out of their jobs and careers, following harsh judgements made by Ofsted inspections in which various data and statistics have been used which purported to show that what had seemed to be good or at least satisfactory schools were somehow failing to reach government and LA targets.

She's surely had lots of time these past months to reflect on how governments policies, a draconian inspection regime and unjustifiable knee-jerk reactions by senior officers like herself  have ruined the careers and sometimes the lives of many lifelong dedicated public servants whose only 'crime' was to try their best to run schools for the benefit of their pupils.

At the very least she might campaign for proper compensation for headteachers and teachers that have been crushed by the current regime, even if such compensation might seem like peanuts relative to her claim for millions.

http://www.dailymail.co.uk/news/article-1210265/Baby-P-boss-Sharon-Shoesmith-claims-like-Bulger-killers-blames-Balls-disgraceful-sacking.html?ITO=1490

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Bankers' Bonuses

Meanwhile, back at the Guardian:

UK to seek global action on bankers' bonuses, says Gordon Brown 

He does make you smile, does Gord.

“Gordon Brown declares today that Britain will push for tough global action to crack down on excessive bonuses for bankers. 
In an interview to mark the start of the political season, the prime minister calls for a "clawback system" to confiscate bonuses based on failed speculative deals. "Remuneration has got to be based on long-term success, not short-term speculative deals," Brown tells today's Financial Times. "There's got to be a clawback system in remuneration itself … if things are not working in year two." 
So - if there's a case to be made for clawing back unjustifiable bonuses, why isn't he going to legislate to tax and claw back all the loot that's been filched from our financial system these past several years – the years that led up to the massive financial meltdown, which could only be addressed by our government by handing over untold billions of OUR money to the banks?

Secondly, this “if things are not working in year two” - Gordo thinks that TWO years is long term!! This is a man who's supposed to be some kind of financial and political genius. I know that a week is considered a long time in politics, but this is insane.

It's a fact that many bankers job-hop and don't ever stay in one place for longer than a year or two – and why would they, after all, stick around to face the long-term consequences of their short-term actions? Any fool can parachute into a top job, do all kinds of cost-cutting, job restructuring, deckchair rearranging and policy changing and then piss off smartly before the actual shit hits the fan. Why hang about and deal with long-term consequences of short-term business-school inspired 'solutions' to hitting targets? Targets, incidentally, that have been agreed with people on remuneration committees who are long-term friends of friends and friends of families, if not actual friends.

Many of these people who've been getting the millions in bonuses didn't even . . . . fuck it – why bother. Nobody's listening anyway, as Len would say.

But . . . but . . . thirdly – and finally – what's implicit in Gordo's acceptance that bonuses are justifiable if awarded for performance over the LONG TERM (of two years) is the idea that fucking huge bonuses are actually morally acceptable - on the grounds that the people getting them would otherwise fuck off elsewhere.

Whereas most of us just want these people to fuck off anyway. Yes- we'd prefer their junior colleagues to step up and show us what they can do in the top jobs on sensible salaries. And if they're massively successful and are offered huge bonuses to go and work abroad, well they can fuck off as well. And so on. Until all those other countries have all the greedy bastards they can possibly use.

Maybe we could just start seeing this country as a kind of incubation facility for the world's financial system. That might be good. And if it meant that our financial system made less money than it otherwise might – well maybe that might just be a price worth paying for a more egalitarian, more harmonious and more contented society in which social and economic justice prevails.

And I'll say this again – a fucking trained monkey could make millions working in an industry where money is the 'product' that's being made, in a casino where the casino owners make their own rules, simply by taking risks and getting lucky, at the expense of rival operators or punters who are slightly less smart and/or slightly less lucky. And in any event the casino owners get rich, regardless of who's placing the bets.

http://www.guardian.co.uk/business/2009/sep/01/gordon-brown-bank-bonuses?CMP=AFCYAH

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Education

I'm somewhat sorry to bang on about the purposes of education but I can't NOT say something in response to the discussions on the Today programme today.

“The government is working with the former Conservative education secretary Lord Baker to set up a new generation of technical schools to train teenagers to become builders, technicians and engineers. Lord Baker discusses the change in education policy which will revive dedicated training schools not seen since the 1950s.” -  Radio 4, Today website.
In Germany their Technical Schools are more popular than their 'grammar schools'. Baker talked on the programme about lifting the status of 'skills', and continuing to teach literacy skills, maths and science alongside technical and practical skills. He emphasised that the new technical colleges he's proposing will be self-selecting – they should be there for kids to opt into, just as they do in Germany. He also believes, apparently, that Britain's failure to offer proper technical education to young people, as an alternative to the 'academic', is our biggest educational failure since the second world war.

It's incredible that such schemes and courses, and indeed colleges, haven't been available to kids all these years – when all that's been happening is more and more emphasis has been put on getting the fucking magical '5 A – C's' and 'academic' attainment. Of course our 'non-academic' kids would have opted into them, given a chance, instead of being forced into classes where nothing meaningful to them has been on offer.

http://news.bbc.co.uk/today/hi/listen_again/default.stm

"The number of vocational Diploma courses available to students in England has doubled from five to 10. The government wants the Diploma to become a core qualification in the education system, viewed to be as valid as A-levels and GCSEs. Sir Alan Jones, chairman emeritus of Toyota in the UK and Professor Alan Smithers, director of the Centre for Education and Employment Research, debate the need for the proposed Diplomas."  - Radio 4, Today website.
“Bringing Learning To Life, is the slogan”. Indeed it should be. “Five new subjects are on offer from today, to add to the five launched last year, from hair & beauty to hospitality.”

Diplomas are meant to be a vocational alternative to exiting GCSEs and A Levels.

Prof Alan Smithers, of the 'University of Buckingham' – privately owned of course - is of course anti-Diplomas. Prior to their introduction he apparently said they were 'a disaster waiting to happen'. He said there didn't seem to be any pent-up demand for this qualification. (!!!) No doubt he'd feel concerned that technical colleges might divert potential punters away from his university, and reduce the demand for 'higher' education as we know it, as well as his uni's income stream.

The professor asked Sir Alan Jones how many 'diplomats' will be recruited by TIE-YOOTA. He can't even pronounce the bloody word. It's TOY - O – TA, you moron.

S'Rallan emphasised that young people need a good balance between theory and practical skills. He rejects the distinction between and the separation of academic and vocational. He stressed that the world is fast-changing and that young people need to be flexible, innovative, entrepreneurial, creative, imaginative, self-managing, good communicators and good at teamwork. He also pointed out that currently young people are not coming into business and industry with this kind of skillset and with these attitudes – from wherever they're currently educated. Er, no. You can't easily test that stuff.

S'Rallan pointed out, in response to the interviewer saying that we surely still need to provide an academic type of education for many of our young people, that the needs of employers and businesses should be prioritised over the needs of universities, since without profitable businesses the country can't afford to run universities anyway. He insisted we need 'well-rounded' young people if the country is to prosper and thereby generate the funds we need for public services, including universities.

He also mentioned that we need those 'well-rounded' young people to 'challenge the way the world is'. Blimey. Whatever next? Schools for revolutionaries?

As for the needs of young people themselves – who gives a fuck. Nowhere in this discussion were young people's actual developmental needs even mentioned. Though it's implicit in what Alan Jones was saying that they need social skills and emotional literacy, as well as spiritual intelligence. They need thinking skills, vocational skills, teamwork skills and communication skills.

But let's be honest, this is all just fucking COMMON SENSE! So how come we're still arguing about the need for common sense in this stupid country?

http://news.bbc.co.uk/today/hi/listen_again/default.stm


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True Stories: The Shock Doctrine

 Naomi Klein

Tonight on More Four 10.00pm – 11.45pm – watch it, record it, share it.

The Guardian's 'Pick of the Day' says:

“Cinematic rendering of Naomi Klein's typically thoughtful and provocative book. The Shock Doctrine chronicles the rise of what Klein terms Disaster Capitalism – the rampant and rapacious profiteering from catastrophe, whether natural (the New Orleans flood) or deliberately orchestrated (Iraq). This is the sort of reasoned, coherent argument that the left should have spent more of the 21st Century making.”
Elsewhere in the Guardian it says,

Digital channel More4 will give Michael Winterbottom's polemical documentary The Shock Doctrine, based on Naomi Klein's book of the same name, its UK TV premiere.

The Shock Doctrine is to be the first programme broadcast as part of a new series of More4's international documentary strand, True Stories, on 1 September at 10pm.

Like Canadian activist and author Klein's book, the film is a critique of America's free market policies, and argues that the US, along with other western countries, has exploited natural and man-made disasters in developing countries to push through free market reforms from which they stand to benefit. In her book, Klein has branded this "disaster capitalism".

Co-directed by Winterbottom and Mat Whitecross, the film also analyses the global financial crisis, which took place after the book was published, and seeks to explain its origins.
The Shock Doctrine argues that big corporations in search of new markets benefit when governments import the neo-liberal economic system, often as a result of pressure from the US, but that this often has catastrophic consequences for "ordinary people". Political leaders have turned to "brutality and repression" it contends, to crush protests against their ideologically inspired programmes of privatisation, deregulation and tax cuts.

The Shock Doctrine was commissioned by More4 from Revolution Films/Renegade Pictures. Winterbottom's previous work includes 24 Hour Party People and Welcome to Sarajevo.

Winterbottom and Whitecross also made The Road to Guantanamo, the award-winning docudrama about British prisoners held at the US detention centre, which was co-financed by Channel 4.
Three hundred cheers for Channel 4, say I.

http://www.youtube.com/watch?v=cvG0gbvZ4tY&feature=related

http://www.guardian.co.uk/media/2009/aug/19/more4-shock-doctrine-naomi-klein

http://www.channel4.com/programmes/the-shock-doctrine 


http://www.youtube.com/watch?v=JG9CM_J00bw&feature=fvw



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And three hundred more for the BBC.

The BBC was attacked at the weekend by that son of a bitch James Murdoch. He was speaking – lecturing if you like – in Edinburgh, at a media festival. He's clearly just a mouthpiece for not only his father but the whole of the Chicago School and business school neo-liberal right wing Shock Doctrine nut house that thinks it rules the planet, or has a right to.

Everything he had to say was summed up in his weedy little closing sentence – a Gordon Gekko-like spiel about profits being the sole criterion for what is good and valid in this world. It's market fundamentalism that's in his genes and in his blood, and no amount of argument about the virtues of public-service broadcasting a la BBC could ever shift his perspective from the Lear Jet global capitalist one he's blinkered by.

Have a look at these sweet words, his closing sentence, his paean to capitalism:
"There is an inescapable conclusion that we must reach if we are to have a better society. The only reliable, durable, and perpetual guarantor of independence is profit."
Here endeth the sermon. What is this independence? Who, within the Murdoch empire, is 'independent'? Of what? Or whom?

The doctrine of deregulation is what crashed the world financial system, and it's also what's turned the American media into such a shit house. But that's what he wants us to have – a deregulated media and a pruned-down, castrated and emaciated BBC. Bastard.

Not that the BBC is perfect, or tremendously well managed. It's just that it happens to be the best model for our public service/public subscription broadcasting system, however well or poorly managed it happens to be. So WE have to stand up and defend it, and not leave an open field for the Murdoch empire to take over and thereby get even richer, fatter and stronger.

http://www.guardian.co.uk/commentisfree/2009/aug/31/james-murdoch-media-bbc-regulators

http://www.independent.co.uk/news/media/tv-radio/james-murdoch-launches-attack-on-the-bbc-1778797.html
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