Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Saturday, March 13, 2010

Layer 262 . . . Journos, Truth, and Cuts in Public Spending

.
In a way, yesterday's blog was a celebration of British journalism. Here are 3 people, Simon Jenkins, Mehdi Hasan and Michael Tomasky, writing about matters of huge importance with enormous skill and passion, and with clarity and objectivity. The truth matters, and it's difficult to disseminate the truth in a world where the media is owned, for the most part, by powerful rich people who have zero interest in examining objective reality with a dispassionate and unbiased eye.

These three writers have a bias, but it's a bias towards truth, justice and ethics, which can hardly be seen as a true bias. They have passion, but it's a passion for truth, justice and ethics.

Yesterday's blog was also a celebration of sorts of the Guardian. Simon Jenkins is a jewel in the Guardian's crown at the moment. Back in the early '90's (1990 - 92 to be precise) PJ was the editor of The Times, based in Wapping. So clearly he knows something about the views of The Establishment, and indeed those of Rupert Murdoch and the other press barons.

He's clearly not your average leftie or armchair radical. PJ's point of view ought to command attention and respect.

Michael Tomasky, writing as a 'liberal' American based in America, can offer a 'liberal' insight into the tragedy of American politics and the impossibility of a liberal president running the country by passing liberal legislation that's in line with the prospectus he was elected on.

Mehdi Hasan is not a regular Guardian contributor - he's the senior political editor at the New Statesman. What the Guardian is able to do is offer him a much deserved worldwide readership, since the editorial team at the Guardian obviously recognise he's saying something of enormous importance in this column. If radical and progressive ideas and ideologies don't prevail now they never will, with huge consequences for social justice, economics, progressive government, greater equality, etc.

..............................................................

Earlier this week Madeleine Bunting wrote an equally essential column in the Guardian:

http://www.guardian.co.uk/commentisfree/2010/mar/07/spending-cuts-labour-election-tories
Cuts rhetoric won't boost Labour hopes

This is territory long colonised by Thatcherite Tories, and would really draw blood among women and the low-paid

A collective delusion seems to have taken grip. Turn a radio on and the politicians are indistinguishable. All the talk is cuts, cuts, cuts. Listen to people talking and it's already an assumption – "when the cuts hit" is a given, no longer up for discussion. It's all done and dusted, then: the biggest spending cuts this country has ever experienced – which will put even those of the early 80s in the shade – have all been agreed. Have I been snoozing or did I miss it? This great political debate has happened by stealth, its conclusions passported into the stock of accepted wisdom with astonishing acquiescence.

It beggars belief that we can be so gullible.

We are drifting into an election dominated by a daft competition in macho rhetoric – slashing, savage, deep, swingeing etc. This is territory long colonised by the Thatcherite Tories, hardly a programme to stir Labour's dwindling activists into election canvassing.

The swiftly assembled political consensus on cuts is based on a series of assertions that can all be challenged – and is being, vigorously, by economists – which makes the politicians' meek acceptance all the more bewildering. A group of economic historians argue that the public debt is not historically high, or even particularly high compared with other developed nations.

Cambridge political historian David Runciman admits to being baffled by the enthusiasm for public spending cuts; he called his radio programme on the subject Turkeys Voting for Christmas.

Bizarrely, rather than discuss how to create jobs, all the parties are thinking of how to create more unemployment.

There was a fascinating analysis in a Compass report last autumn, In Place of Cuts, on how much money the government saves by axing a £25,000 public sector employee. After you've calculated for all the lost income tax and national insurance contributions, and then factored in all the benefits this sacked employee would receive on jobseeker's allowance, guess the grand total saved? Less than £2,000. And that is before one tries to put a figure on the wider social costs of unemployment – depression, rise in illness, risk of long-term withdrawal from the labour market. It's a no-brainer.

Beware public sector job cuts – reports of local authority cuts of a minimum of 10% last week would mean the loss of 500,000 jobs – are likely to have a disproportionate impact on women . . . Of the 1.1m new jobs taken up by women between 1997 and 2007, 80% were in the public sector.

Among these statistics are teaching assistants, community support workers, nurses, teachers, youth workers – all doing useful jobs and paying taxes. Why deprive us of their needed labour and push them into the demoralising idleness of jobseeking for non-existent jobs?

The recession is hitting certain groups hard; the Resolution Foundation report shows that low earners are bearing a disproportionate cost of this recession; they make up a third of the electorate, 9.4 million people with average household earnings of £15,800, and many are seeing a loss of income and a cut in working hours. With no capacity to save – they spend 41% of their income on essentials – they have little to fall back on in hard times.

Cuts in public sector employment could tip many of these vulnerable families over the edge, out of jobs and on to benefits: these are exactly the "hard-working families" championed in innumerable Labour speeches, yet this is where the "slashing" and the "savagery" of spending cuts would really draw blood. This election should be fought on how to save their jobs and create new ones for their children, instead of being hijacked by an old Thatcherite small-state agenda.
.

Sunday, November 29, 2009

Layer 232 . . . Welcome To The Real World

.
The Guardian had a curious "Advertisement Promotion" in it yesterday, a four-page spread called "Welcome to the Real World", wrapped around the Family section of the newspaper - for want of a better place.

It's there in the paper to draw attention to a DVD that was given away yesterday, and the front page of this 'promotion' says, "The world is changing, but our education system is not keeping pace. A new hard-hitting film calls for a fresh approach to learning."

As you probably know, Oxzen is very keen on fresh approaches to learning. Haven't had time to watch the DVD as yet, but will get round to it today. Be assured the next blog will reveal all.

In the meantime, here's a bit more blurb for you:

"The world is changing rapidly, but our education system is not keeping pace with these changes . . .

Young people need an education rich with opportunities for practical and vocational training, alongside traditional academic study. As Dr Cream Wright, (Cream?) global chief of education for Unicef says in a new film, "Schools fail to prepare young people for contemporary society, for the realities of the world we live in and, more significantly, for the emerging issues of our time".

The film We Are The People We've Been Waiting For, inspired and guided by Oscar-winning producer Lord Puttnam, looks at where the education system is going wrong and how we can address the issues that are of vital importance to everyone."

David Puttnam is definitely one of the good guys, so the film is probably well worth watching.




Have a look at this 'advertorial' -

http://www.guardian.co.uk/we-are-the-people/welcome-to-the-real-world
http://www.guardian.co.uk/we-are-the-people 

And it's on the Internet!

http://www.wearethepeoplemovie.com/....................................................

So what else has been happening in The Real World?

Simon Jenkins wrote another superb column that gets to the real heart of the matter as far as the banking disaster is concerned. Everyone needs to get their heads round this piece of reality.

Name, shame, blame the bankers, if you like. But they're the wrong target


http://www.guardian.co.uk/commentisfree/2009/nov/26/name-shame-bankers-wrong-target

Who said bankers "just don't get it"? They get it absolutely. Bankers are doing what they pay themselves to do, make money. They are performing what economists from Adam Smith to Karl Marx regarded as capitalism's sacred ritual, profiting by rigging markets and shedding risk. Like all professions, their first responsibility is to their peer group and their second to their shareholders. It is not their job to run the country, only sometimes to ruin it.

The banking community came a cropper last year but manoeuvred itself out of trouble by deploying the oldest trick in the book: claiming that the government needed them even more than they needed it. They were "too big to fail".

Ministers and regulators bought the gambit hook, line and sinker. They all hollered that bonuses were "ludicrous" (Darling), that banks had "lost sight of basic British values" (Brown) and were "antisocial" (Lord Turner). But it was all mouth. For them to accuse the banks of behaving obscenely might be a brief buzz, but what are a few insults to a banker on a roll?

It was not the banks that do not get it, but those on whom the public relies to guard its interests: Brown, Darling, Myners, King, Turner, the Treasury and the Financial Services Authority. The bankers this past year have played a blinder. Next month they will give themselves large bonuses while the nation troops to the dole office. They merit the order of the golden fleece, first class.

Then came today's report from the latest Hercules sent by Alistair Darling to clean the City's Augean stables, Sir David Walker of Goldman Sachs. He predictably concluded that nothing more than a feather duster was needed. He seemed to think that his fellow bankers would decamp en masse to Monaco if so much as rapped over the knuckles. So what?

As if that were not galling enough for the taxpayer, the supreme court – asked to adjudicate on the racketeering of banks towards overdraft customers – stepped forward to pat them on the head. The judges said it seemed fine to them and went off to make daisy chains in Parliament Square.

Nobody but a fool believes that a free market in anything, left to its own devices, will tend to perfect competition. Economic history attests that it tends to monopoly. That is why it must be regulated. Such regulation, in every sphere of economic life, is democracy's most onerous but essential responsibility. In the case of British banking in 2008, the government's clear duty was to ensure that marketplace discipline curbed the emergence of a debt bubble and that no residual liability, let alone one for some £1.3 trillion, should fall on the state.

Last year was a tragic failure of that responsibility and not one person in authority has accepted blame. The best-told stories might be of millionaire salaries, fancy derivatives, subprimes and sports cars; but what mattered was the denouement, saddling every man, woman and child in Britain with unprecedented levels of lifetime debt. This will be paid for in unemployment and higher taxation in the short term, and in a lower standard of living for the foreseeable future. The bank crash was a national disaster, the economic equivalent of Munich and appeasement.

Ministers have spent the past year propping up toxic debt, but not the British economy, which lurched deep into recession. They did nothing to help it, apart from brief and bizarre assistance to the car market. This was at a time when governments across the world were racing to prop up consumer demand, successfully speeding recovery. It was as if Britain was a one-industry town, that of banking.

Darling and his colleagues were clearly out of their depth. Public money was being spent on an unprecedented scale, with no one in charge knowing where it was going. Where were the public auditors? Still no one has explained the meaning of the much-parroted phrase, too big to fail. A failed bank may be a terrible thing, but then so is an economy crippled by long-term debt service. Which is worse? Why did nobody ever ask?

I find it simply incredible that a chancellor can take over a trillion pounds of public money, some of it in secret, without giving a remotely plausible account of why it was risked as it was, rather than in boosting consumer demand. At present the Chilcot inquiry is asking past ministers and officials why they went to war in Iraq. The reason is that war kills people. What happened to the banks last year did not kill people, but in every other sense it was a seismic event in the history of Britain's political economy. It was a true collapse in political authority. I wonder when someone will stop abusing bankers and fix on those really to blame.

..................................................



The other Big Event of last week to catch up with is the start of the Chilcot Inquiry - the Iraq Inquiry. Simon Jenkins, again, injects a dose of reality:

http://www.guardian.co.uk/commentisfree/2009/nov/24/blair-chilcot-inquiry-parliament-iraq

We want Blair's head. But Chilcot won't give it to us
Britain's political community, bored at having to wait six months for an election, is baying for blood. The nation may lack bread, but at least it can have a circus.

It even has a star Christian, Tony Blair, who got us into the mess. The cry is for him to die, and die horribly. The camera must toy with his face in the dock, zooming in on the dripping brow, the writhing body language, the phoney meekness and the mendacity. Damned as a war criminal, Blair must be hung, drawn and quartered and his head impaled on a spike at Temple Bar. He must be Chamberlain after Munich, Eden after Suez. There must be nothing left of him but a puddle of sweat.

The same goes for the rest of them, Gordon Brown, the cabinet, John Scarlett, Alastair Campbell, civil servants, generals, bag carriers and tea ladies. Kill them all. The amphitheatre is packed with MPs and journalists, salivating as the gore runs into the sand. Not Nero in all his pomp staged a show like this one.

What else is Chilcot about? We know the truth. The report can be written in a sentence. Tony Blair went to war in Iraq because he lacked the guts to stand up to George Bush, say the invasion was not justified by facts or law, and refuse to join him in Baghdad. Despite being told to his face by Hans Blix that there were no weapons of mass destruction in Iraq, he deceived the cabinet and parliament and took his nation to war.
................................................................

Morrisey and Zen


Morrisey was on Desert Island Discs today, and he was reasonably interesting - though most of what he said we already knew. His choice of music was less than inspirational.

http://www.bbc.co.uk/programmes/b00p068y

For his luxury he chose a bed, which was original. He reckons he prefers to be on his own for most of the time, and says that going to bed is the highlight of everyone's day.

Kirsty was obviously a fan in her youth.


Commenting on his manner and his attitude, she said, "I don't want to use the word Zen . . . but at 50 you seem less spikey, more reflective and thoughtful, and at ease with yourself."

Which is an interesting, inaccurate and very common interpretation of what Zen is about.

Zen is really concerned with helping us to see through to the reality of things, and having seen reality we may well be motivated to become more energised, more challenging , and less 'laid back' if we feel moved to try to do something about the condition of the world.

See also:

http://oxzen.blogspot.com/2008/04/layer-14-zen-buddhism-breaking-chain.html
http://oxzen.blogspot.com/2008/04/layer-18-nature-of-reality-redefining.html
http://oxzen.blogspot.com/2008/04/layer-20-fully-evolved-humans.html
http://oxzen.blogspot.com/2008/04/layer-12-spiritual-intelligence.html
http://oxzen.blogspot.com/2008/04/layer-23-zen-abd-art-of-everything.html
http://oxzen.blogspot.com/2008/04/layer-24-chopping-wood-carrying-water.html
.

Saturday, October 31, 2009

Layer 214 . . . Part Three . . . Mel's Journey into Darkness and Ignorance, Obama and City Bonuses

.
Well done The Guardian for giving Ed Hussain space in the paper to lambast the appalling Melanie Phillips.

The personal jihad of Melanie Phillips

In her McCarthy-style paranoid parallel universe, the Spectator columnist views every Muslim a potential Islamist terrorist
Melanie Philips's zealotry and ignorance frighten me. How did we produce a public commentator filled with such anger, venom and hatred?

I believe in the human ability to change and, in that hope of helping Melanie see the the flaws in her analysis, I met with her several times in private and appealed to her to stop blaming Islam and Muslim scripture for (the decidedly un-Islamic phenomenon of) terrorism. Why would she and her acolyte Douglas Murray not cease attacks on Muslim scripture that were based on bin Laden's understanding of Islam? And why would they not support Islam's inherent pluralism and recognise that Islam per se is not the problem, but iconoclastic interpretations of it.

With Melanie and Douglas, I probably failed. Just as humans can travel to enlightenment, they can also journey into darkness and ignorance.

Melanie has gone from being a tree-hugger during her Guardian days to ranter about climate change "totalitarians". And worse, seeing conspiracies and dangerous links where there are none. What else explains her suggestion in last October's Spectator magazine that President Barack Obama "adopts the agenda of the Islamists" and is "firmly in the Islamists' camp"?
http://www.guardian.co.uk/commentisfree/belief/2009/oct/31/melanie-phillips-islamism-spectator

Lots of good comments on CiF after this article, like this one from royj68 -
The reason i can't listen to the moral maze anymore.Taking lessons in morality from Melanie Phillips:hilarious.
And from notsuperstitious -
Don't forget the Melanie Phillips definition of 'anti-semitism' i.e. anyone who dares question that maybe, just maybe, the Palestinians have a right to their own state, perhaps should not be subject to apartheid restrictions in their own land with their resources and land stolen from them, and in fact deserve to be treated and viewed as human beings rather than the unpleasant brown stuff you sometimes tread in.
.....................................................

Talking of Obama -

Much remains for Obama to do – but what's remarkable is how much he has achieved in the face of financial crisis – by Ian Williams
http://www.guardian.co.uk/commentisfree/cifamerica/2009/oct/30/barack-obama-usforeignpolicy
After Obama's election I wrote here: "It may not be the second coming, but to use the eschatological phraseology of the Palins of this world, it is certainly the end of the reign of the Antichrist." I also recalled what I'd said during the campaign: "The world looked upon these elections as an IQ test for the American public. The electorate has aced the test. It has put centuries of racism behind it and elected a president who shows signs of knowing where the rest of the world is."
Frankly, while still far from euphoric, I feel vindicated. The coalition of not-so-covert racists, teabaggers, birthers and defenders of Medicare against the state should be a reminder to the purist Obama-detractors of the left just who could instead be staffing the US government now.
....................................

There's talk today about how Obama seems to have failed to create any positive change in the Middle East and Israel. It looks to me as though having appointed Hilary Clinton he's more or less had to allow her to go softly softly into the region and more or less be led round in circles by the various parties there.

However, there will surely come a point when he'll have to say in a big speech what he expects to see happening henceforward, and what the consequences will be as far as America is concerned if the Israelis continue to take the American billions and give nothing in return except piss-taking and a contemptuous refusal to cooperate in any enlightened way.
.......................................

Time for a windfall tax on bonuses

We need to transform the banking sector by reasserting democracy and bringing the business elite to account

by Jon Cruddas and Jonathan Rutherford

http://www.guardian.co.uk/commentisfree/2009/oct/31/bank-bonus-windfall-tax
The Christmas bonus pay-out by the City is forecast to rise to £6bn. This excessive reward for market failure is morally and politically unacceptable. So today Compass is calling for a windfall tax on bankers' bonuses.
A minimum tax of 25% on banks' bonus funds could net £1.5bn to create jobs for young people and help to develop the future green economy. The government must show political leadership and act decisively because there are larger issues of democracy and economic development at stake.
Britain is now the only major economy still in recession. Three decades of the ascendancy of financial capital and the dismantling of the welfare state, employment regulation and workers' rights has removed many of the economic stabilisers that act as buffers to deflationary pressure – secure jobs, decent wages and proper benefits. With our capacity to weather the economic storm weakened, millions will pay for the bankers dynastic levels of wealth by facing a sub-poverty line Christmas on the £69-a-week Job Seeker's Allowance.
Lord Griffiths, vice-chairman of Goldman Sachs, says the British public should tolerate this kind of inequality because it will lead to "greater prosperity for all". The evidence proves him wrong. A decade of booming bank profits has left the incomes of middle Britain stagnant. Between 2005 and 2006, when the financial services share of the UK's GDP increased from 8.8% to 9.4%, income poverty began to rise again.
The business model of the financial sector does not spread wealth and it does not create a significant number of jobs. It established a collusion between shareholder value and the business elite which engineered a massive transfer of wealth to the rich.
.

Tuesday, August 11, 2009

Layer 179 Blears, Vandalism, Same Old Bullshit, Mandelson and Equality

.
Enduring image of the week: Hazel (I want to spend more time with my constituency) Blears talking on her mobile phone whilst sitting in the back seat of her car, which was immobilised with four flat tyres and a smashed windscreen. "New Labour in its death throes, wrecked and useless" seems a suitable title for that particular snapshot. The tyres and the windscreen were vandalised whilst the Red Dwarf was out and about in Salford, leafletting her people. A spokesperson for HB denied that the damage was caused by someone with a grievance or a grudge, or that the incident had anything to do with a general perception that HB is a greedy, money-grubbing, expenses-fiddling little shit. Really? Yes, really. The Mighty Mouse believes it was done by bored individuals, on a warm summer's day, who had nothing better to do with themselves. They're suggesting it was a random piece of vandalism on a vehicle that no-one would have known was hers.

Well, let's just say it's quite possible that a few locals had nothing better to do with their time than smash up Hazel's car, which is seemingly, according to clips on TV news, as well known in Salford as Simon Hughes' big yellow taxi is in Bermondsey. Such a bleak "explanation" is in itself quite a comment on New Labour's 11 years in power and Blear's efficacy as an MP.

Some might say that such direct action is quite a reasonable way to prioritise your time if you're powerless and voiceless and you'd like to make a political point, leaving aside the small issue of its illegality and questionable morality. But then HB probably believes, like her NL chums, that the undeserving poor and the underclass will always be with us, not least because they're congenitally idle, shiftless and incapable of working hard to better their lot.

We can infer this is their way of thinking, since meritocracy seems to be their buzzword, and equality seems to be a word that's been deleted from the NL political dictionary of useful words and phrases. "Morality" and "ethics" seem pretty redundant as well, leaving aside Gordy's well-known 'moral compass'. People like Blears who advocated the illegal smashing up of Iraq and Afghanistan for their own political ends can hardly complain if someone decides to use similar direct action to further their own ends. There's also the wrecking of the economy, and the financial system, and people's livelihoods to consider.

Whilst remaining open-minded to the possible validity of both these explanations, I'd like to suggest a Third Way. I think it's quite possible that the damage was caused by someone, or some people, who, whilst knowing or caring very little about Blears' expenses fiddling, happen to loathe and despise her simply on the basis that she's a revoltingly smug and alarmingly mad little basket case with an ego the size of the boat she was supposedly rocking, or helping to sink.

It seems to me entirely possible that there are people in Salford who have always hated her attitude, her relentlessly fixed grin, her careerism, her Brown nosing, her uncritical and unreformed Blairism, and the part she's played in hijacking and destroying the values of a once-proud party. This is only a theory, mind you. From this distance it's difficult to say just how many Salfordians agree with those who were interviewed for TV news and stated quite clearly they despised their MP, who of course is being fully supported by her fellow New Labour activists for re-election next time around. Well they would do, wouldn't they?

------------------------------------------------------

On the subject of equality, by the way, I think it's time to reconsider the whole idea. The first thing we need to do, in order to create a more equal society, is to reassure the wealthy that nobody wants to take away any of their wealth. It needs to be made clear that the ideology of egalitarianism has nothing to do with class envy. What they have, they should be able to hold on to. If they have a nice house or two, and a nice car or two, and a fat income, then good luck to them. It's not their fault. They may even deserve it.

So the first point that needs to be made is that there's no need to be scared that socialists want to take away people's money. Except, maybe, from the incredibly, disgustingly rich. They know who they are. And they can't really complain if, after decades of being allowed to add even more unbelievable wealth to what they already own, it's time to pay more taxes. Especially to support such a transparently good cause.

As for the merely well-off and wealthy, it's important to give an assurance that New Socialism does not seek to reduce their wealth by a single penny. What needs to be clearly established is that the pursuit of greater equality, and a happier, more coherent society, is about reducing the huge gap between the wealthy and the poor in this country, and for that to happen the minimum wage needs to be raised, the poor must be enabled to live in better houses and flats, and the children of the poor must be offered a better education. And so on. That's not so threatening, is it? Especially if the already rich are guaranteed to be able to keep their existing wealth.

But not entitled to get even richer, mind. The whole point here is that in capitalist societies the rich demand the right to get even richer, whilst the poor stay poor, usually through no fault of their own, or get even poorer. We're talking now about RELATIVE and ABSOLUTE levels of wealth. And so taxation policies will need to be adopted that maintain the rich at their current levels of wealth but don't enable them to get even richer, or only with reason, whatever we agree that should be.

What's not to vote for there, especially if you're poor and working class? Surely this is something even the wealthy should want to support, so long as they stay wealthy. Strangely enough, it's what the Labour Party used to advocate when it was first established. It's the opposite of 'Lord' Mandleson being intensely relaxed about the filthy rich getting even richer.

---------------------------------

And now a few words about the good Lord. What a bastard. How the fuck is he now in charge of the country whilst Gordy's on holiday? What kind of fucking democracy are we that allows someone who's not only unelected but universally despised to be in charge? Or even second in command? The cynics are currently having a field day, and a right good laugh, suggesting that when Gordo quits then Mandy will slip into the top job. But of course, given the Labour Party's current constitution, and its current command and control structure, this could easily happen. Does anyone seriously doubt that Mandy still craves the PM's job, and that he's capable of drumming up the necessary support within the ranks? That's how bad New Labour really is.
.

Wednesday, March 18, 2009

Layer 137 The Theory of Everything and the Source of All Our Ills.

.
Oh well, back to the politics, the financial meltdown, the appalling lack of spiritual intelligence in our public life.

There was a fascinating programme on BBC4 last night (twice - I caught the late show) about Zen and wabi sabi, but I’ll come to that in a moment.

The front page headline on the Guardian this morning is “Brown: I should have done more to prevent crisis.” And “PM says he accepts ‘full responsibility’ and declares laissez-faire era over.”

http://www.guardian.co.uk/politics/2009/mar/17/gordon-brown-recession-banking-regulation

"Gordon Brown attempts to launch a political fightback today by declaring that he takes "full responsibility" for his role in the banking failures that led to the global recession, and claims that the downturn marks the end of the era of laissez-faire government.

In an interview with the Guardian, the prime minister concedes that in retrospect he wishes he had mounted a popular campaign 10 years ago to demand more responsible regulation of the world's financial markets. He attempts to draw a line under calls for him to make an apology by admitting that the national system of regulation he helped establish in 1997 could not keep pace with the massive global financial flows.

In some of his most extensive comments on his role in the recession, Brown said: "I take full responsibility for all my actions, but I think we're dealing with a bigger problem that is global in nature, as well as national. Perhaps 10 years ago after the Asian crisis when other countries thought these problems would go away, we should have been tougher ... keeping and forcing these issues on to the agenda like we did on debt relief and other issues of international policy."

So what Brown actually said to the man from the Guardian was, “I take full responsibility for all my actions”. Of course he does. Why wouldn’t he? What he deliberately fails to say is that he takes full responsibility for all of his INactions which allowed and encouraged the bankers and the fat cats to ruthlessly exploit the gullibility and naivety of millions of ‘ordinary’ people - i.e. non-insiders (even people like Max Hastings, more of whom later) - and effectively rob them and steal from them their life savings in the capitalist casino, which, like every casino, operates for the benefit of those that run it.

He argues that "only progressive, centre-left governments can address the problems of the global change".

Brown also claims that "the 40-year-old prevalent orthodoxy known as the Washington consensus in favour of free markets has come to an end", but signals a refusal to return to Labour's comfort zone by saying there will be no return to "big government", or any let up in public service reform.

What a fucking nerve - suggesting that New Labour has been a progressive, left of centre government when we know damn well that it’s gone even further than Thatch and Major in its privatisations, deregulations, giving independence to the UK’s central bank, appointing useless bankers to key advisory and regulatory roles, etc. Bastard.

What a fucking nerve - telling us that the 40-year old ‘Washington consensus’ has (thankfully) come to an end when he and Blair did fuck all to try to end it when they came to power in ’97, as they should have done. As if he’s played any part in ending the era of voodoo economics and the reign of the Chicago School! He fucking supported it!

And now he’s opportunistically trying to follow Obama’s lead on everything - from suddenly adopting Keynesianism and ditching the Friedmanite Chicago School theorists, to advocating the end of the bonus culture, raising taxes on the rich and putting ceilings on executive pay. Bastard.

Jon Stewart on the Daily Show neatly skewered Brown last week by running clips of several of the bits of his speech to Congress that milked standing ovations, and then showed the much older clips of the bits of Obama’s speeches that Brown had copied word for word or plagiarised.

As Jon S put it, “What is this guy? A Barack Obama cover band?”

He said nothing original in that speech, and only stated the bleeding obvious when he called for concerted international action to deal with the world economic crisis. Big deal. We could all do that.

"Laissez-faire has had its day. People on the centre-left and the progressive agenda should be confident enough to say that the old idea that the markets were efficient and could work things out by themselves are gone", he says.

What’s this? You don’t say! Laissez-faire capitalism should have had its fucking day way back in the 1930’s - since it took a world war to kick-start economies out of the great depression that L-FC had caused, and post-war it took Keynesian enlightenment, the Marshall Plan and the creation of the United Nations and the IMF (before the Chicago Boys took up residence there) to pilot the world into a new era of peace and prosperity. These were institutions and international agreements that came into being because it was clearly understood back then that unbridled, unregulated capitalism could only bring misery, recession and ruin to entire populations.

And as for Brown saying that “people of the centre-left and the ‘progressive agenda’ should be confident enough blah blah” - WE fucking WERE confident enough to say that markets needed regulation and public accountability! Only Brown and Blair and their crew weren’t fucking listening!!

“The prime minister also argued that the world recession was changing the public's expectations of business values, and they no longer believe a successful economy has to be based on high levels of risk.

"Most people want business to have the same values as they practise in their everyday life. People would rather reward hard work rather than risk-taking.”

This is bollocks too. Maybe the world ‘recession’ (economic implosion) has changed Mr Brown’s ‘expectations of business values’, but WE, the ‘public’, i.e. the real people, have always espoused the values that he’s now, belatedly, proclaiming. It’s not the bloody public’s values that are now changing..

Brown also says, in the interview spread across pages 14 and 15, that “both government and markets have got to be underpinned by values”. That’s right, Gordo. Socialist values. Belief in fairness, social justice, the elimination of poverty, much greater inequality, the elimination of tax havens, tax avoidance and fat-cat bolt-holes, caps on executive pay, the elimination of the bonus culture, higher rates of tax for the rich, a much higher minimum wage, and so on. All the things that NuLabour has patently failed to even campaign about and argue for, let alone act on.

How this guy has the nerve to paint himself as a progressive and left of centre is beyond belief.

http://www.guardian.co.uk/politics/2009/mar/17/labour-gordon-brown-interview

---------------------------------------------------

A couple of days ago I was reading the chapters in Naomi Klein’s ‘The Shock doctrine” that deal with what happened to the so-called Asian Tiger Economies, which Brown refers to, during the late 1990’s. Read them and weep. Big business and big finance in the USA and elsewhere decided it wanted part of the action in places like Malaysia, Indonesia, the Phillipines and South Korea - places that had built thriving industries and public utilities that were at least part-owned by the state - and so set out to destabilise their currencies in order to force them to apply to the IMF for support. The IMF, of course, which by this time was firmly under the control of the Chicago Boys, told them that loans would only be available to them AFTER they’d agreed to sell off, to privatise, at knock-down prices, their state assets and their major industries. And guess who stepped in, bought them up, and asset-stripped them, as they had already done in Russia, Eastern Europe, South Africa, South America, and elsewhere? That’s right - fat cats, financial predators and oligarchs.

-------------------------------------------------

Two more recent columns in the quality press about the harmful effects of inequality, as researched and reported by Wilkinson & Pickett in ‘The Spirit Level’.

Will Hutton in The Observer:

‘Look no further than inequality for the source of all our ills.’

http://www.guardian.co.uk/commentisfree/2009/mar/15/equality-economy-will-hutton


John Crace in G2:

‘The Theory of Everything’.

http://www.guardian.co.uk/society/2009/mar/12/equality-british-society

http://www.guardian.co.uk/society/2009/mar/11/mental-health-inequality

http://www.guardian.co.uk/books/audio/2009/mar/05/the-spirit-level

----------------------------------------------

Simon Jenkins had another excellent column in The Guardian on Friday 13th, on the deeds and legacy of Thatch and her ilk.

“Where Thatcher - or rather her chancellor, Nigel Lawson - went wrong was in the reformed structure of City finance brought on by the Big Bang of 1986.”

No one was more traumatised by the miners' strike than two young Labour politicians, Tony Blair and Gordon Brown. A year earlier, Blair had been elected for Sedgefield on a leftwing, anti-Europe, pro-union, pro-CND platform, to begin one of the most spectacular U-turns in political history.

By 1989 Blair was shadow employment secretary, and was demanding that his party quietly accept Thatcher's labour and privatisation laws. He and Brown visited Australia to study Labour leader Bob Hawke's ideal of Thatcherism with a human face. He declared, "We play the Tory game when we speak up for the underclass rather than for the broad majority." Meanwhile Brown demanded that the party "make an almost religious atonement for the sins of Labour's past", in the words of his biographer, Robert Peston.

Brown was so frantic to mimic Thatcherism as shadow chancellor that Peter Hain wrote in 1993: "There is little to distinguish Labour's macroeconomic policy from that of the Tories." John Prescott, Jack Straw and David Blunkett dismissed Brown in Tribune as a crypto-monetarist. He was against tax rises, for privatisation and an ardent defender of Kenneth Clarke's Treasury policies.

This is only relevant since whatever blame attaches to Thatcher for the financial chaos of the last six months attaches even more to Blair and Brown. In truth, Thatcherism was a consensus, built on the experience of the 1970s as the consensus of 1940s welfarism was built on that of war.

The difference is that Brown, in his semi-independence for the Bank of England, was super-Thatcherite. The Financial Services and Markets Act 2000 established the tripartite regulation that has so conspicuously failed. It went far beyond what Thatcher would have tolerated.

Meanwhile history is silent on the downside of the Thatcher era. The command structure she created to crush her foes became unrestrained, over-centralised and inefficient. Her evisceration of local democracy bred a cynicism among Britons towards political participation that remains unique in Europe. It also led to her downfall through the poll tax.

Thatcher was one of the great "nationalisers" of all time, taking control of the public housing stock, the rating system, a previously devolved hospital service, the universities, the courts, crown prosecution and, during the miners' strike, the police. It was Thatcher who turned Whitehall from an elite administrative corps into a demoralised, politicised officialdom which, under Blair and Brown, became besotted with targets, initiatives and useless IT systems.

Thatcher removed former nationalised industries from the state. But ask any doctor, farmer, lecturer, engineer or victim of the health and safety executive if, as a result of Thatcher, they feel less or more liberated from state interference. You will get a sick laugh.

http://www.guardian.co.uk/commentisfree/2009/mar/13/margaret-thatcher-recession-mythology
------------------------------------------

Meanwhile, back at Max Hastings, “Winning the next election should be the least of Cameron’s worries.”

In his previous Guardian column Max, a life-long Tory, had described how he’s lost a shitload of his own money through trusting financial advisers and others who told him to invest in stocks and shares that are now worthless. He’s belatedly woken up to the evils of capitalism. He’s extremely fearful that as a result of the collapse of economies around the world we’re now on the eve of social, political and financial catastrophe.

Well, Max, I hate to say this, but I, for one, could have told you so. Many people in fact wrote books about it. Am I the only one who read “The State We’re In” - Will Hutton’s best-selling 1996 classic? Surely not.

Anyone who had eyes to see could have told Max that American and European economic imperialism and exploitation would one day come to a very bad end. And now it has. People like Max may have lost the most money, but they’ll still be better insulated from the effects than those who lost nothing because they had fuck-all to lose in the first place. Nothing except their jobs, their homes, their self-respect, their life chances and indeed their lives, in lots of cases. The rates of suicide during and after the Asian downturn and buy-out were phenomenal. Millions are still unemployed and impoverished all over the world, and it’s going to get a lot worse.

“We are in a phoney war period, comparable with the winter of 1939. Everyone recognises the gravity of events, but no bombs are falling. Although markets have crashed and unemployment is rising steeply, most people are still going about their affairs more or less as they did a year ago. Few national leaderships are yet thinking or acting with a conviction commensurate with the scale of the crisis.

It is hard to suppose this comparative normality will persist. Hundreds of millions of lives are going to be brutally changed. It is unlikely that any decisions taken at next month's London G20 summit will avert acute social pain. It is implausible that populations will respond stoically. This will be especially so if they see those who created the disaster, notably the banking community, still enjoying absolute or even relative opulence secured by false pretences.

A few years ago, many of us were naive enough to suppose that the global struggle between left and right was effectively over; that capitalism and social democracy were irrevocably triumphant. Peter Flannery's 1996 TV classic, Our Friends in the North, seemed to represent an archaeological dig through old British miseries. The rage of the left that it portrayed, the corruption of capitalism and of the police as its enforcement arm, the violence of the 1984 miners' strike, the class war cliches, were light years removed from the prosperous Britain of the Blair years.

As a Tory, I watched Flannery's series with some complacency. I was confident - and still am - that our side was mostly right in the struggles of the 1980s.

The left's view of capitalism as a conspiracy against working people looked ridiculous. Tony Benn was wrong about almost everything. After Thatcher's fall, for almost a generation, capitalism delivered on an extraordinary scale, conferring prosperity on all but the poorest members of society.

Today, however, few people even in Wall Street or the City of London dispute that we are suffering a historic failure. It cannot be blamed on political troublemakers, workers, asylum-seekers, terrorists or climate change. It is explicitly the responsibility of those who have conducted the world's financial machinery, indulged and abetted by governments. Tim Geithner, the US treasury secretary, speaks frankly of "a systemic failure of regulation".

In the face of this, the innocents who will suffer seem entitled to vent their feelings, armed with a moral authority a hundred times greater than that which provoked the turbulence of the miners' strike or, for that matter, the poll tax riots. To say this is not to countenance violence, but merely to acknowledge the justice of public anger.

It will be strange if, in a new and poorer world, voices of the left do not find audiences such as they have not known for 30 years. As public spending is cut, the jobless find it impossible to regain work, businesses of all kinds struggle for survival, the political map of many nations, notably including Britain, could be redrawn. In the decade ahead, no one will speak without irony of "the enterprise society".

The war had forced upon Churchill's government socialistic domestic policies. These will be equally inescapable amid the 2010 economic crisis.

Privately at least, most politicians acknowledge the probability of civil unrest.

Thus far, what seems most remarkable about the cataclysm is that few prophets have acknowledged how radically it could change the political landscape.

Right on, Max, my man. I couldn’t have said it better myself.

http://www.guardian.co.uk/commentisfree/2009/mar/16/david-cameron-conservatives-election

---------------------------------------------

Damn - I’ve run out of time and space to say anything about wabi sabi. Manyana.
.

Sunday, January 25, 2009

Layer 116 The Bad Dad Blogger, Green Shoots, Cogs in the Machine and Going Bankrupt.

.
This should have been posted last Monday, 19th January.

Springwatch 1

Some hapless and dopey junior minister in our hapless and dopey government last week fell into the trap set for her by a radio interviewer and said, yes indeed, she thought she could see a few green shoots of recovery in the midst of this recession - which as we all know is just beginning to pick up speed, prior to plunging our economy into deflation and the first great depression of the 21st Century.

I thought about this as I walked to the shops this morning, and saw the green shoots of the crocuses and daffodils that are starting to appear. I thought about it some more when I saw the newspaper headlines about our banks needing more billions to bale them out, and the possibility that Britain could soon be effectively bankrupt.

It’s a useless metaphor to begin with, the idea of green shoots. Our economy is nothing like a garden in which green shoots appear, after which flowers grow, then blossom, and then die back again. The economy is in reality like a machine, an enormous vehicle perhaps, like a bus or a train, on which ride children with their carers, plus retired people, who depend on the effective working of the machinery in order to travel comfortably and safely on their journey.

The adult working population are the components of the machine - the nuts and bolts, the cogs, the axles, the springs, the cables, the pulleys, the tubes, the washers, the injectors, the valves, the connecting rods, the pistons, the cylinder liners, the switches, the sensors, the hoses, the tyres and the various fluids and liquids that flow within it.

If any of those components fails or gets damaged then the machine doesn’t work properly, or breaks down. Our machine has broken down, and is slowing to a standstill. It’s barely ticking over. Whoever programmed the software in the engine management system - in the microprocessors that govern the engine’s operations - was a fuckwit.

You can extend the metaphor to the entire world economy, whose management software was written by the fuckwits of the Chicago School of economics and their acolytes. And now we’re all fucked.

Oh well - maybe lessons have been learnt, and maybe we now have a chance to start from scratch, and completely rethink what we want to machine to do, and re-programme it so that it functions effectively and sustainably for the benefit of the entire planet.

It’s going to be interesting. It’s going to be big money, the fat cats and the tax havens versus We the People, the Disunited Nations and our efforts to re-regulate capitalism.

Today is Obama’s inauguration day.

-------------------------------------------

Bad Dad

I’m a bad dad. I’ve finally left my son to take care of himself. After weeks of fetching and carrying, of waiting on him hand and foot, particularly the foot that has several broken bones in it, I’ve run away to see my mum and to see what I can do for her.

Quite a bit, as it happens. She had nothing substantial in her fridge or freezer, and her house insurance had expired two years ago, it transpires. She needs a lot of care - now that her mental faculties are so diminished. Thank goodness these days she’s no longer depressed, and she can laugh a little at her foibles and infirmities.

But how come the agencies that are supposed to take care of her, who are paid to take care of her, have been taking so little care? How come no-one has a little checklist and says to these elderly, infirm individuals - ‘Have you renewed your property insurance? Why haven’t you got fresh food in the house? Don’t you think it’s not a good idea to live entirely on meals on wheels and their paltry offerings? Have you forgotten how to use the electronic bath seat? Has anyone bothered to show you how to use the handset on your new digital television? Do you really want the volume to be on maximum the whole time? Have you checked the battery on the smoke alarm recently? Don’t you think this worn-out crackling telephone needs replacing.’

I guess I also have some questions to ask my sister.

--------------------------------------------------

In many ways I’ve always been a bad dad. I’ve never managed to find the time and energy to give my children all the attention they needed, and still need. Like most parents, maybe, but that’s no excuse.

Any parent that works full-time in a profession, a business, or any organisation, is like a cog in a machine. You work because you have to work. You turn because you’re attached to a spindle or an axle, which turns because another cog is making it turn, and you in turn, in the act of turning, force other spindles and other cogs to turn. We’re all part of some vast clockwork world. We’re all doing what we do because the machine is set up in order to make us do it. And if we crack up or disintegrate then we just get replaced. And the world, and all of its little cogs and spindles, just carries on spinning.

It’s a huge challenge for anyone to take real control of their own lives, and live according to their real needs and the needs of their dependents. It’s an even bigger challenge if you’ve painstakingly built your own organisation or business, and you feel responsible for the wellbeing and professional development of large numbers of people, plus their families, plus those who benefit from the work you do and the services you provide. There’s a very powerful incentive to stick around and continue to direct and develop the organisation and its members, regardless of its costs and its wear and tear on you personally.

----------------------------------------

Salam Pax

I read last week that the Baghdad Blogger, aka Salam Pax, is returning to his home city, to resume his life there. He’s now a fully-fledged journalist, and I look forward with interest to his despatches.

http://en.wikipedia.org/wiki/Salam_Pax

----------------------------------------

Plus Ça Change . . .

Consider these paragraphs from an article in the Guardian, and stick with them to the end, even if, at first sight, they don’t seem to be saying anything that you don’t already know or agree with:

It is impossible to doubt that genuine anti-semitism - racial antipathy towards Jews - is resurgent in Europe and even, in some circles, becoming respectable.

Many of the remarks that Jewish critics denounce as anti-semitic are, in reality, criticisms of Israel or its government.

In this country, only the Guardian and Independent deal thoroughly with what is taking place, and display real sympathy for the plight of the Palestinians. Elsewhere a lot of space is given to apologias for Israeli conduct, some of which reveal a contempt for Palestinian human rights that invites the most baleful of historical comparisons.


It is a tribute to Israeli propaganda success that many commentators seem happy to regard as just a possible peace deal that would leave Israel in control of settlements and strategic roads in a Palestinian state. It is a measure of how far matters have gone that when Ariel Sharon announced the closure of some settlements in Gaza, it was hailed as a historic breakthrough.

In the eyes of some of us, even the Oslo accords promised no realistic prospect of a viable Palestinian society. They represented the outer limit of what Israeli liberals believed they could sell to their own nation, but they offered the Palestinians no chance of economic, social or political lift-off because the terms denied any hope of self-respect.

I reply to every reader's letter accusing me of anti-semitism because the issue seems so important. They make the cardinal error of identifying the Jewish people with the Israeli government, wilfully confusing anti-semitism and anti-Zionism. Often, they seem to demand that the behaviour of Israel should be judged by a special standard, that allowed the likes of Sharon and Netanyahu a special quota of excesses, in compensation for past sufferings.

For many years, Israelis in debating difficulties have played a decisive trump: "You have no right to criticise our actions, because of the Holocaust." Ruthless exploitation of the Holocaust card has been successful in deflecting much international criticism, especially from European democracies.

Charges of anti-semitism are not infrequently levelled against the growing number of Jews who express dismay about the behaviour of the Israeli government; they are "self-hating Jews", who betray their own kin. Yet surely it is those who make such cruel allegations who bring shame upon themselves.

Jewish genius through the centuries has been reflected in the highest intellectual standards. Attempts to equate anti-Zionism, or even criticism of Israeli policy, with anti-semitism reflect a pitiful intellectual sloth, an abandonment of reasoned attempts to justify Israeli actions in favour of moral blackmail. In the short run, such intimidation is not unsuccessful, especially in America. Yet in the long term, grave consequences may ensue. In much of the world, including Europe, a huge head of steam is building against Israeli behaviour.

More than a few governments are cooperating less than wholeheartedly with America's war on terror because they are unwilling to be associated with what they see as an unholy alliance of the [Israeli and American] governments. One of Germany's most distinguished postwar leaders expressed to me a few months ago his frustration that, as a German, he is unable to vent his feelings about the wickedness of what is being done in Israel's name.

I feel a commitment to the Jewish people, founded on awareness partly of their history, partly of their genius. Yet I see no reason why this should prevent me from asserting that the policies [of their government] bring shame upon Israel.

It is ironic that Israel's domestic critics - former intelligence chiefs and serving fighter pilots - have shown themselves much braver than overseas Jews. If Israel persists with its current policies, and Jewish lobbies around the world continue to express solidarity with repression of the Palestinians, then genuine anti-semitism is bound to increase. Herein lies the lobbyists' recklessness. By insisting that those who denounce the Israeli state's behaviour are enemies of the Jewish people, they seek to impose a grotesque choice.

The Israeli government's behaviour to the Palestinians breeds a despair that finds its only outlet in terrorism. No one can ever criticise the Jewish diaspora for asserting Israel's right to exist. But the most important service the world's Jews can render to Israel today is to persuade its people that the only plausible result of their government's behaviour is a terrible loneliness in the world.


I came across this article whilst browsing through Oxzen’s extensive library of newspaper cuttings this week. It was written by Max Hastings on March 11th, 2004, under the strapline, “Israel’s repression of the Palestinian people is fuelling a resurgence of anti-semitism.”

That’s right - nearly 5 years ago. I re-read it yesterday, shortly after seeing TV pictures showing parts of Gaza where Israeli armoured bulldozers had systematically flattened huge areas of houses and flats that hadn’t already been flattened by Israeli missiles and shells.

Children were sitting on concrete blocks and on piles of rubble amongst the wreckage of what used to be their homes, prior to this latest assault. No wonder some of them had tears rolling down their cheeks. It’s enough to make anyone weep.

http://www.guardian.co.uk/world/2004/mar/11/race.pressandpublishing
.

Saturday, January 3, 2009

Layer 109 Welcome to 2009

.
There is a war
Between the rich and poor
A war between the black and white
A war between the odd and the even.

--------------------------------

The poor get poor
The rich get rich
That’s how it goes
Everybody knows

Leonard Cohen

--------------------------------------

Actually, as I said in a previous blog, everybody knows some of it, but most of us don’t know the half of it. Reading Naomi Klein’s The Shock Doctrine helps to get up to speed.

We don’t even know a fraction of what we ought to know about the incredible way in which wealth has been systematically looted, defrauded, swindled and transferred from the public realm to the private, and from the poorest to the richest, over the past 35 years, since neo-conservatism, free-marketeering, globalisation and rampant capitalism really took hold of the world, broke the post-war social-democratic consensus, and imposed the so-called ‘Washington Consensus’.

Just as colonialism in the 18th and 19th Centuries expropriated wealth from the poorest parts of the world for the enrichment of the already rich parts, capitalism in the late 20th Century and early 21st has transferred incredible sums of money from the poorest sections of this and other countries into the coffers and offshore bank accounts of those who already were, and are, fabulously wealthy. The Shock Doctrine explains how it was done.

What’s more, since Naomi Klein published her book, the process has continued, even though the world’s financial system and its global bubble, its world-wide pyramid swindle, or Ponzi Scheme, if you like, has exploded and created a near-meltdown of the entire capitalist system.

And now those who created the bubble - the financiers and bankers - are being left to get away with it, with the fruits of their looting and robbing intact and safely squirreled away, whilst the millions who have seen their lives made poorer by what’s been going on are now having to hand over even more of our money in order to prop up the banks, their bosses and their shareholders, and the entire financial systems of countries both rich and poor, which suddenly found themselves imploding thanks to the billions of dollars, pounds and Euros that have been appropriated by the greed and ruthless scams of the fat cats and wise guys who ran, and in most cases still run, the capitalist system.

The main reason these fuckers are not being held to account and made to pay for what they’ve done is that for the most part it was all perfectly legal. The ‘Big Bang’, as it was known, the deregulation of our financial system, made it legal for huge financial businesses, banks, hedge funds, etc, to start playing the world’s financial system like it’s a huge casino.

So as for holding these bastards to account - forget it. They were just doing what they were allowed to do. They were allowed to lend seven times salary to people who had no deposit to put down on the property they were convinced they needed to buy in order to ‘get on the housing ladder’. They were allowed to increase rents on crappy flats and houses to extortionate levels. They were allowed to lend huge sums to people who had low incomes, little job security and little hope of keeping up repayments when the downturn came along, as it was surely bound to.

They were allowed to give the impression they knew what they were doing and that there would be no bust at the end of the boom. What the fuck did they care? They were in line for huge bonuses for being employed by the Capitalist Casino, as long as they were reasonably competent and just kept on selling their financial ‘products’, just kept the commissions rolling in. So there was no way they were going to blow the whistle or upset the gravy train. They weren’t doing anything illegal.

Immoral - yes. Sleazy and despicable and completely unethical - of course. They weren’t even exercising due diligence, but then no-one’s going to beat them up for that at this stage of the game. The entire fucking government and state apparatus of this and other countries wasn’t even exercising due diligence. So who are they to get heavy about the way things have panned out? New Labour’s been in bed with the City - and everybody knows it.

-------------------------------------------

We just didn’t know all the things we should have known. I can’t remember which of those neo-con cretins went on about ‘known unknowns’ and ‘unknown unknowns’? Was it Cheney or Rumsfeld? Or Greenspan? Well it was true. Many of us sensed there were things happening that shouldn’t have been happening, but there were so many more things that we had no idea, not even any inkling, were happening.

-----------------------------------------

Having read Chapter One (The Torture Lab) of The Shock Doctrine I now realise that the CIA not only funded research in various universities into effective techniques of torture and terror, but they also trained the operatives working for South American fascist military dictatorships in how to apply those techniques after they’d rounded up their opponents - socialists, liberals, anti-capitalists, left-wing radicals, artists, intellectuals, etc.

Those same techniques, again disseminated by people employed by the US government using public funds, are still being used around the world to this day - from Guantanamo Bay to Iraq, and in the various ‘offshore’ prisons and hell-holes where those who have been rounded up by the ‘security forces’ have been taken by ‘extraordinary rendition’.

But who’s now strong enough and determined enough to bring them to book for what they’ve been doing, in the international courts of justice? America considers itself above international law.

And who, for instance, could possible take to task the World Bank and the International Monetary Fund, both of which are based in Washington, and which, under the direction of their ‘Chicago School’ economists and managers, ceased to operate for the benefit of the poorest counties, as per the Bretton Woods agreement which created those institutions in the first place following WW2?

Many years ago the WB and the IMF started to impose conditions on those poor nations which desperately needed support and bail-outs thanks to falling commodity prices and unmanageable ‘debt repayments’. Conditions like not getting any money or help unless they agreed to sell off their State-owned assets to overseas fat cats at ludicrous knock-down prices. It was a question of privatise, deregulate, allow foreign takeovers, etc - or fuck off.

-----------------------------------------

Torture and the Shock Doctrine

The CIA became seriously interested in torture during the period of the war in Korea. At that time, and indeed by the time the war in Vietnam took place, there appears to have been no official sanction for assassinating, terrorising and torturing opponents, other than carpet bombing various parts of Vietnam from high-flying B52s, the prospect of which must be regarded as some kind of terror or mental torture if you happened to be living in the war zone.

Interestingly the US government and the CIA became very interested in the subject of torture when various shot-down airmen and captured soldiers began to appear on North Korean TV saying to camera that they did not support their government’s actions, and did not think that US forces should be in Korea. Some of them were filmed denouncing US imperialism and capitalism.

Altman’s excellent film ‘Mash’, and its spin-off TV series, gave a real flavour of what the more thoughtful of the conscripted servicemen and women thought about the Korean war. It’s not exactly surprising that those thoughtful and reflective young people of the USA, very few of whom had actually volunteered to join the army or airforce or wished to fight in Korea, were unhappy about America’s role in the conflict. Nevertheless, the head honchos in the US government and the CIA assumed that anyone who voiced such opinions on Korean TV must have been ‘brainwashed’ and tortured in order to elicit such opinions.

They therefore set about investigating how to brainwash young people, using what we now recognise as the classic techniques of interrogation and torture. Certain academics in certain universities were eager and willing to take the CIA’s money in order to pursue enquiries into how to wipe minds ‘clean’ and fill them with whatever you want them to believe. They seemed to believe that if you understood how to carry out ‘brainwashing’, then you could teach those serving in the military how to resist it. At least that’s how they justified the millions of dollars invested in this ‘research’.

Naomi Klein:

The United States Central Intelligence Agency funded a Montreal doctor to perform bizarre experiments on his psychiatric patients, keeping them asleep or in isolation for weeks, then administering huge doses of electroshock as well as experimental drug cocktails including the psychedelic LSD and the hallucinogen PCP. The experiments - which reduced patients to preverbal, infantile states - had been performed at McGill University’s Allan Memorial Institute under the supervision of its director, Dr Ewen Cameron.

Patients had gone to Cameron seeking relief from minor psychiatric ailments - postpartum depression, anxiety, etc - and had been used, without their knowledge or permission, as human guinea pigs to satisfy the CIA’s thirst for information about how to control the human mind.

Not only did Cameron play a central role in developing contemporary US torture techniques, but his experiments also offer a unique insight into the underlying logic of disaster capitalism. Like the free-market economists who are convinced that only a large-scale disaster - a great unmaking - can prepare the ground for their ‘reforms’, Cameron believed that by inflicting an array of shocks to the human brain, he could unmake and erase faulty minds, then rebuild new personalities on that ever-elusive clean slate.

In the mid-fifties, several researchers at the CIA became interested in Cameron’s methods. It was the start of Cold War hysteria, and the agency had just launched a covert program devoted to researching “special interrogation techniques”. (Including psychological harassment and ‘total isolation’, as well as ‘the use of drugs and chemicals’.) Project MKUltra spent $25 million on research in a quest to find new ways to break prisoners suspected of being Communists and double agents. Eighty institutions were involved in the program, including forty-four universities and twelve hospitals.

Cameron’s work was funded by the CIA until 1961, and for many years it wasn’t clear what, if anything, the US did with his research. When proof of the CIA’s funding for the experiments finally came out in Senate hearings and then in the patient’s groundbreaking class-action lawsuit against the agency, journalists and legislators tended to accept the CIA’s version of events - that it was conducting research into brainwashing techniques in order to protect captured US soldiers. The CIA and Ewen Cameron had recklessly shattered lives with their experiments for no good reason - the research appeared useless: everyone knew by then that brainwashing was a Cold War myth.

In the exposes of MKUltra from the eighties . . . the experiments are consistently described as “mind control” and “brainwashing”. The word “torture” is almost never used.

In 1988, The New York Times ran a groundbreaking investigation into US involvement in torture and assassinations in Honduras. Florencio Caballero, an interrogator with Honduras’s notoriously brutal Battalion 3-16, told the Times that he and twenty-four of his colleagues were taken to Texas and trained by the CIA. “They taught us psychological methods - to study the fears and weaknesses of a prisoner. Make him stand up, don’t let him sleep, keep him naked and isolated, put rats and cockroaches in his cell, give him bad food, serve him dead animals, throw cold water on him, change the temperature.” There was one technique he failed to mention: electroshock.

[Torture victim] Ines Murillo said, “I smelled smoke and realised I was burning from the singes of the shocks. They said they would torture me until I went mad. I didn’t believe them. But then they spread my legs and stuck the wires on my genitals.” Murillo also said that there was someone else in the room: an American passing questions to her interrogators whom the others called “Mr. Mike”.

The revelations led to hearings of the Senate’s Select Committee on Intelligence, where the CIA’s deputy director, Richard Stolz, confirmed that “Caballero did indeed attend a CIA human resources exploitation or interrogation course”. The methods taught ranged from sensory deprivation to stress positions, from hooding to pain.

Wherever the Kubark [CIA] method has been taught, certain clear patterns - all designed to induce, deepen and sustain shock - have emerged: prisoners are captured in the most jarring and disorienting way possible, late at night or in early morning raids, as the manual instructs. They are immediately hooded or blindfolded, stripped and beaten, then subjected to some form of sensory deprivation. And from Guatamala to Honduras, Vietnam to Iran, the Philippines to Chile, the use of electroshock is ubiquitous.

Though sanctioned by successive administrations in Washington, the US role in these dirty wars had to be covert, for obvious reasons. Torture, whether physical or psychological, clearly violates the Geneva Conventions’ blanket ban on “any form of torture or cruelty”, as well as the US Army’s own Uniform Code of Military Justice barring “cruelty” and “oppression” of prisoners.

[After September 11, 2001] what had previously been performed by proxy, with enough distance to deny knowledge, would now be performed directly and openly defended.

Despite all the talk of outsourced torture, the Bush administration’s real innovation has been its in-sourcing, with prisoners being tortured by US citizens in US-run prisons or directly transported, through “extraordinary rendition”, to third countries on US planes. That is what makes the Bush regime different: after the attacks of September 11, it dared to demand the right to torture without shame. That left the administration subject to criminal prosecution - a problem it dealt with by changing the laws.

According to the new rules, the US government was free to use the methods it had developed in the 1950s under layers of secrecy and deniability - only now it was out in the open, without fear of prosecution.

Human rights groups point out that Guantanamo, horrifying as it is, is actually the best of the US-run offshore interrogation operations, since it is open to limited monitoring by the Red Cross and lawyers. Unknown numbers of prisoners have disappeared into the network of so-called black sites around the world or been shipped by US agents to foreign-run jails through extraordinary rendition. Prisoners who have emerged from these nightmares testify to having faced the full arsenal of Cameron-style shock tactics.

The problem was the premise on which his entire theory rested: the idea that before healing can happen, everything that existed before needs to be wiped out. Cameron was sure that if he blasted away at the habits, patterns and memories of his patients, he would eventually arrive at the pristine blank slate. But no matter how doggedly he shocked, drugged and disoriented, he never got there. The opposite proved true: the more he blasted, the more shattered his patients became. Their minds weren’t “clean”; rather, they were a mess, their memories fractured, their trust betrayed.

Disaster capitalists share this same inability to distinguish between destruction and creation, between hurting and healing. Fervent believers in the redemptive powers of shock, the architects of the American-British invasion imagined that their use of force would be so stunning, so overwhelming, that Iraqis would go into a kind of suspended animation, much like the one described in the Kubark manual. In that window of opportunity, Iraq’s invaders would slip in another set of shocks - these ones economic - which would create a model of free-market democracy on the blank slate that was post-invasion Iraq.

But there was no blank slate, only rubble and shattered, angry people - who, when they resisted, were blasted with more shocks . . .

------------------------------

This is the legacy that Obama’s team now have to sort out. As I say, it’s going to be interesting.

His team of the best and the brightest will be welcomed with open arms by the international community, after the years of having to deal with the voodoo henchmen (and women) of the Bush junta.

They can immediately save billions of dollars by cutting back drastically on the global reach of their armed forces and spy networks, their plans to put missiles into eastern Europe, their Star Wars bullshit, etc. They don’t even have to make an ideological case for it - the country simply cannot afford such useless luxuries. It’s the shock doctrine turned to good purpose.

They can then start to redress the unbelievable inequalities that exist through the USA, through a modern-day New Deal - building decent housing for the poor, and decent schools for the nation’s children. They can also put funds into proper health care for those who need it, and decent hospitals and clinics for every section of the population.

No wonder the poorest sections of society feel a sense of excitement and anticipation. This can really happen. As Obama bravely said - what’s wrong with spreading the wealth around a little?

----------------------------------

More on Bankers

Meanwhile, what’s likely to happen in little Britain in 2009? Simon Jenkins, as usual, told it like it is in the Guardian this week:

If there is one sentiment that should have died in 2008 it is faith in the collective intelligence of Whitehall. The economic forecasters league table for 2008 was published last week and, of the 42 pundits listed, no public authority was in the top half. The Treasury came in at 37th and the IMF was bottom.

This is the mob that brought us City deregulation and the house-price bubble. Yet I doubt if a single one has been upbraided, let alone sacked. The entire Bank of England monetary policy committee is still in office - except for the only one who called the recession correctly, David Blanchflower, who has mysteriously been stood down.

This is not some City luncheon parlour game. As a result of the arrogance of these economic managers, a million people will lose their jobs next year and tens of thousands their houses. Yet all they think to do, egged on by politicians, is take more money from spenders and give it to savers, to their beloved City banks.

Banking is a profession that excels at making money for itself. For 10 years it mesmerised Blair and Brown, who showered it with tax loopholes, offshore profits, PFI contracts and vacuous government consultancies. Ministers and bankers enjoyed a revolving Whitehall door.

Frustrated ministers are still expecting the City to rescue the economy in 2009, continuing to trust it with the public's money to an extent that they will not trust the public. They seem unaware that bankers do not rescue economies. They rescue banks.

---------------------------------------------

Abandoned and Betrayed

Radio 4 news yesterday had a lead item on a new survey which highlights the fact that the English white working class feels abandoned, resentful and betrayed. As well they might. They also complain about unfairness, lack of decent housing, and unequal resource allocation, which seems to be a coded way of saying ‘policies that favour non-whites’, especially in housing.

What’s so stupid and divisive about this is the fact that the non-indiginous communities in this country are equally entitled to those sorts of feelings. This is a class issue, and in fact nobody who voted Labour in any of the last three general elections was voting for policies that amount to Thatcherism-lite. Absolutely everyone whose income is around or below the national mean or median is entitled to feel resentful, betrayed, etc.

But then again, so does virtually everybody. Even the middle classes have a sense that New Labour has sucked up to the City and Big Finance to the detriment of everyone who’s not pretty damn wealthy. Nobody voted for more outsourcing, more deregulation and more privatisation. Nobody voted for New Labour in order to have more inequality, or for the rich to get even richer. Nobody voted for the boss class to jack up its salaries by about 20% per year whilst everyone else got rises around the rate of inflation, i.e. no increase at all.

Timothy Garton Ash wrote a strange column in the Guardian this week, supposedly about the future of capitalism, and posing questions such as, how much more money and things do we need? “Is enough as good as a feast? Could we manage with less? What really matters to you? What contributes most to your individual happiness?”

Well, Tim, old pal, my individual happiness would be greatly affected by feeling the rich were being put under some restraint, that tax havens were about to be abolished, that the rich were going to pay their fair share of taxes, and that disaster capitalism was no longer going to rule the roost. I’d feel a lot happier if I thought that the poorest sections of society were becoming a lot less poor. What really matters to me is that child poverty is totally eradicated. I’d also like to see full employment, decent housing for all, and an education system that cared about the all-round well-being and development of children and not just preparing them for employment.

We could have had these things years ago if this government had done its job properly and not squandered huge landslide victories and a massive mandate for change.

What the majority of this country’s population needs to face up to sooner or later is that successive governments by adhering to Friedmanite monetarist orthodoxy, by running the economy for the benefit of disaster capitalists, was bound to make them feel abandoned and betrayed, because that’s exactly what this political and economic creed is supposed to do. It’s often been called ‘trickle down’ economics, but in practice nothing really even trickles down. It all gets sucked up.

The Chairman of Citigroup, Sir Win Bischoff, a man who goes to 2 or 3 black tie dinners per week, was interviewed on the radio this week, and even he admitted that the root cause of our current financial and economic crisis is “enormous amounts of liquidity seeking ever higher returns”.

That’s code for “huge amounts of surplus money in the hands of fat cats who will go to any lengths to keep it and deposit it wherever they can generate even more money”.

The people who own and control this money have no loyalty to any one country and aren’t in the least bit interested in investing in productive industry and receiving a moderate rate of return over long periods of time. They want big bucks, "ever higher returns", and they want it now. Creating a property bubble was the fastest way to lever up their profits.

Will Hutton described all this extremely well in The State We’re In. Just read it.

Incidentally, the failed boss of Citibank received a ‘retirement’ kiss-off of £38 million.

Franklin Roosevelt spoke about the Depression being caused by selfish and callous wrongdoing by financiers and bankers. How come our Prime Minister can’t bring himself to use similar language?

-------------------------------------------

Blathering Blears

Hazel fucking Blears was on World At One yesterday, blathering on about the survey showing white working class disaffection. The housing issue! What a vile creature she is. All she kept going on about is what she assumes is ignorance on the part of those who complain about the allocation of council houses and flats. “They need to understand that the majority of people who arrive in this country live in privately-rented accommodation, not council property.”

So fucking what, you idiot!? She can’t even see, or admit, that the key issue for most people is the points system, and the fact that no consideration is given for length of residence in this country, and the fact that people want to live near family and friends and not some godforsaken estate on the outskirts of nowhere - as well they might. What’s so unreasonable or racist about that?

I know of at least one couple who live in a two bedroom council flat on an estate they don’t want to live on, and would love to move into one of the newer flats in a more desirable part of the district. However, they stand NO chance, on account of the fact that they already have a flat! So we then have a situation where new arrivals are allocated the newest and best houses and flats, whilst long-time residents stay put in their sink estates. Who wouldn’t be resentful?

Blears then tries to shift the blame to the local authorities on the basis that they make their own rules. So how come the government hasn’t tried to influence or persuade them towards more enlightened policies? Isn’t that what government is supposed to do? This government’s done no such thing because they prefer to cop out, and don’t even properly understand the issues, the causes of the resentment, anyway.

Stupid bloody Blears then said that the real problem is the shortage of houses and flats. So who’s fucking fault is that? John Major? Margaret Thatcher? Tony Blair? Gordon Brown? How come this government has built fewer units of social housing than the Tories? The woman is shameless, as well as stupid. She can’t even bullshit convincingly.

Ken Livingstone, on his LBC programme this morning, is talking about Labour making a ‘catastrophic mistake’ in not immediately funding vastly more council housing. But he’s still focused on the lack of properties, and isn’t addressing the issue of who gets to live in which of the stock that’s available.

When there’s a shortage of resources like housing the government has a responsibility to share them out fairly, unless they want to foment resentment and disaffection. NO fair-minded individual who’s without a home resents moving into the poorest of a council’s accommodation, providing they get a chance to live in the better places later on.

And those who have lived in an area the longest, and have paid taxes the longest, surely deserve a chance to live in the best of the council’s housing before they die.

------------------------------------

There is a war
Between the rich and poor
A war between those who say there’s a war
And those who say that there isn’t.

Leonard Cohen
There Is A War
.

Friday, August 8, 2008

Layer 66 - Meet The Rich, Unjust Rewards and Capitalism in a Shambles

.
Another black teenager was killed in London yesterday. He died in the Woolworth store in Walworth when two young men with handguns leapt off mopeds and fired through the shop’s doors. He was the 22nd victim of knife or gun crime in London so far this year.

I find this utterly shocking. For God’s sake - mopeds? Where’s the dignity in that? Even at the age of 16 I wouldn’t have been seen dead (whoops!) on a moped, let alone have used one on a mission to kill somebody. Mopeds were, and are, a joke - a real tossers machine if ever there was one. Top speed 30mph, with a following wind.

Can you imagine Al Capone’s gangsters going about their business on whiny little mopeds instead of roaring around in cool black V8 Fords and Chevys? What the hell’s got into these kids? It’s time we took another look at how they’re being educated, and also consider offering them some serious mentoring. Mopeds!

-----------------------------------------------------

Unjust Rewards

This week the Guardian has been publishing extracts from a new book by Polly Toynbee and Davis Walker called Unjust Rewards. The first extract was called Meet The Rich, and describes “the jaw-dropping arrogance they encountered when they asked some of the fat cats to justify their lives of luxury”.

http://www.guardian.co.uk/money/2008/aug/04/workandcareers.executivesalaries

Here’s a couple of extracts to give a flavour of the piece:

“Those who make the most money seem less willing than ever to see it redistributed. Tax consultants Grant Thornton estimated that in 2006 at least 32 of the UK's 54 billionaires paid no income tax at all.”

“We hoped to gain an insight into their notions of fairness - what might persuade them to share more of their wealth with others. What we encountered was a startling demonstration of ignorance. Here were professionals who deal daily with money, yet know next to nothing about other people's incomes. When asked to relate themselves to the rest of the population, these high-earners utterly misjudged the magnitude of their privilege.

How much, we asked our group, would it take to put someone in the top 10% of earners? They put the figure at £162,000. In fact, in 2007 it was around £39,825, the point at which the top tax band began. Our group found it hard to believe that nine-tenths of the UK's 32m taxpayers earned less than that. As for the poverty threshold, our lawyers and bankers fixed it at £22,000. But that sum was just under median earnings, which meant they regarded ordinary wages as poverty pay.

Mistakes such as these should disqualify the wealthy from pontificating about taxation or redistribution. And yet City views carry great weight with ministers and politicians of all parties.”

“None of us like to feel guilty about our comfortable lives, and it would have been absurd to expect mea culpas from these people just because they earned so much. What we had hoped for was more awareness, some recognition that their position needed explaining and even justification. Instead, with the exception of a couple of progressive lawyers, they simply denied they were rich.”

“The idea of redistributing more was, said one lawyer, "all kinds of bullshit crap which doesn't help the people". They felt a passionate hatred of capital gains tax and inheritance tax.”

Toynbee and Walker conclude:
“Here were people who might be technically adept, or good at deal-making, but as a group - with one or two exceptions - they were less intelligent, less intellectually inquisitive, less knowledgeable and, despite their good schools, less broadly educated than high-flyers in other professions. Their high salaries were not a sign of any obvious superiority. Most dismaying was their lack of empathy and their unwillingness to contemplate other, less luxurious lives. They could not see that the pleasure they derived from possessions, prospects and doing well by their children is universal and that others deserve a share of that, too.”

I find this whole scenario - the tax avoidance, the elitism, the snobbery, the greed, the stupidity - so sickening I can hardly even bring myself to think about it, let alone comment on it. What I do think, though, is that New Labour has done nothing at all to deal with these attitudes and these people whatsoever, and has presided over more than a decade of widening inequality.

And even now, when the City has been busted by the sub-prime crisis, and has had to go cap in hand to the government for subsidies and for bridging loans, the fucking government still has no idea what to do about the entire shambles.

There’s a very good piece in yesterday’s Guardian on this issue by Aditya Chakrabortty called “Capitalism Lies In Shambles, and the Left Has Gone AWOL.”

http://www.guardian.co.uk/commentisfree/2008/aug/07/economics.creditcrunch

There’s more good stuff by Aditya C to be found at:

http://www.guardian.co.uk/profile/adityachakrabortty

Seamus Milne, also published in the Guardian’s Opinion pages yesterday, was quite specific:
http://www.guardian.co.uk/commentisfree/2008/aug/07/davidmiliband.gordonbrown
“The challenge for the rest of the party has to be to crystallise what is already a clear majority for a more progressive and popular policy agenda: on pensions, health, housing, tax, regulation and Iraq. With or without Brown, Labour has to take a new political direction to survive.”

“Brown could face down the threat of a counter-coup and relaunch his premiership next month by breaking with untrammelled neoliberalism and making the move beyond Blairism he ducked last summer. He could announce an emergency package of measures that would tilt government policy unambiguously towards greater equality and public intervention - such as controls on utility prices, a shift of the tax burden from the low-paid to the rich, and a major public housing programme. He could make a conference speech that reminded voters of what Labour is supposed to stand for and carry out a reshuffle reflecting the new approach: cutting the disproportionate Blairite presence down to size.”

“What neither Brown nor his rivals seem yet to have grasped is the scale of political change needed to deal with the new conditions triggered by global financial crisis, falling living standards and recession - and the bankruptcy of a deregulated market model (that was) all the rage during a boom (which) has now evaporated.”

In his piece Milne gives a damn good kicking to David Miliband for being the Blairite he’s always been. It’s true that Miliband has been loyal to Brown, (in that he hasn’t suggested any radical shifts in direction or policy), and of course he was loyal to Blair for more than 10 years. It’s also true I wrote about Miliband recently with a certain amount of praise for his manner and his potential. ( http://oxzen.blogspot.com/2008/06/layer-56-summer-in-city-iii-city-boys.html ) I still think that Miliband would be an asset to some sort of coalition government in the event of there being a hung parliament, but I still think he’s far too young and inexperienced to even contemplate becoming party leader.

Maybe he’s similar to another young Foreign Secretary who was promoted too high too soon - David Owen - and who never subsequently prospered in politics, for a variety of reasons. Maybe he’ll emulate Owen by leaving the Labour Party after it’s returned to its left of centre roots and quickly move on to help set up a rival party of the centre left in which he can be a guiding star and a philosopher king. I think that would be pretty much inevitable if we ever get around to adopting proportional representation. You read it here first, folks.

-----------------------------------------------------------------------

Perhaps it’s worth repeating another point I made in that previous blog, since we’re considering here the attitudes of the fat cat bankers and stockbrokers, etc, and now that more and more people are having to default on unmanageable mortgages, especially with fuel and food prices shooting up -

“Delightful TV footage this morning of Bear Stearns executives in handcuffs, charged with fraud and misleading investors. Charged with not communicating the true risks of the sub-prime market. They moved their own money to safety whilst keeping everybody else in ignorance of the fact that the economic and financial shit was about to hit the fan.Will the British authorities now follow this excellent example? Don’t hold your breath. Do keep a clothes peg handy for when the stench gets really bad.”
.