Allison Kilkenny: Unreported

Toronto on lockdown for G20 summit: the wall, snipers, and sound cannons

Posted in Capitalism, Economy, police state, wealth divide, world by allisonkilkenny on June 25, 2010

Protesters march through downtown Toronto on Thursday to draw attention to aboriginal issues. (Pras Rajagopalan/CBC)

I find it disturbing that a major city being put on lockdown in order to accommodate the international elite and suppress the underclass has become standard — and acceptable — procedure.

Right now, the leaders of rich and developing nations are in Toronto, and the authorities anticipated that there will be a series of protests during the conferences because there are always protests during the G8/G20 meet-ups.

Capitalism is particularly unpopular right now because the US has unleashed a steroid-filled version of it unto the world, and this economic system has failed to provide for the majority of people. It has, however, created a dwindling elitist echelon who control a vast majority of riches. In the year of Hayward and his yachting adventures, there’s no reason to doubt there will be any fewer protests against the douchiest rich people among us.

Toronto was ready to suppress such dissent, and shape a nice, pleasant narrative for the city’s visitors, by implementing a complete and total lockdown.

The “lockdown” of central Toronto includes a 3m-high (10ft), 3.5km (2.2-mile) concrete and metal fence enclosing the G20 meeting area and a huge security presence. Banks and theatres will be closed, as will one of Canada’s most famous tourist attractions – the CN Tower.

It’s important to remember that the supposed goal of the G20 summit is “to continue the work of building a healthier, stronger and more sustainable global economy.” And what better way to express that kind of egalitarian unity than to build a 10-ft-high, 2-mile-long fence to keep out the serfs?

These kinds of global gatherings have also become a playground for authorities to experiment with their newest, shiniest crowd control devices. Last year, I reported that Pittsburgh police demonstrated the latest suppression technology on protesters near that year’s G20 summit. The weapon du jour were sound cannons.

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Reimagining Socialism

Posted in Capitalism, Economy by allisonkilkenny on March 19, 2009

 AVENGING ANGELS

Tariq Ali

The crisis confronting capitalism is a vivid demonstration of the vapidity that underlay the appeal of globalization (a k a the Washington Consensus) as a mantra for all seasons, all times, all countries and all continents. Mass unemployment once again threatens the advanced capitalist world, as it has during thirty-four business cycles since 1854. Ehrenreich and Fletcher map today’s conditions, underline the weaknesses of the left on every level and then pose the old question, What is to be done?

Before addressing the question, a few points of disagreement. Despite mocking those on the left who, in the past, saw every downturn as an opportunity to proclaim that the end of capitalism was nigh, the authors fall into the same trap. This time, we are told, the “patient may not get up from the table.” I don’t agree. Capitalism is always faced with crises, which are part of the deadly logic of an economy based on a state-buttressed market system. It has failed many times before but has recovered, including during periods when it confronted real political challenges. Its ability to adapt and survive should not be underestimated, even though it will do so, as before, at the expense of the majority it exploits. 

Until the emergence of a viable sociopolitical and economic alternative, perceived by a majority as such, there will be no final crisis of capitalism. In order to save themselves, today’s elites will consider approaches to the crisis that preserve the status quo. The choice they are faced with domestically is between establishing a public utility credit and banking operation geared to reviving a productive sector, or shoring up a discredited, deregulated Wall Street/City of London operation based on fictive capital. The bailouts in New York and London are designed to do the latter. Globally, it’s more difficult to accept a loss of Atlanticist control, but if pressure continues to mount, the Far Eastern bloc might suggest a new set of institutions based on multilateral rather than imperial control, leading to dismantling but also renewal.

What of the alternatives? With the post-1990 entry of capitalism into Russia, China, Vietnam, etc., the global media networks crowed that the capitalist Cinderella had defeated the ugly sisters, communism and socialism. The shift was experienced by a majority of the world’s less-privileged citizens as a collapse of all anti-capitalist perspectives.

A new mood for change developed slowly: the Caracazo in 1989, Seattle a decade later, followed by the birth of a World Social Forum to counter the ideology of Davos, followed by a set of mass social movements in South America. The dramatic collapse of the Argentinian economy led to workers’ self-management experiments, factory occupations and district soviets (councils) in Buenos Aires to discuss a different future. In Venezuela, Bolivia, Ecuador and Paraguay, the social movements challenging the neoliberal order produced governments that represented a new form of radical social democracy that seeks to combine state, socialized, cooperative, small-scale private and individual enterprises. These popularly elected governments broke the isolation of Cuba and obtained its help in constructing health and education infrastructures that benefit the majority. If Cuba, in turn, learned the importance of political pluralism from its new allies, the results would be beneficial.

What happens in Latin America is important for the United States. The backyard has moved indoors. The large Hispanic population within US borders maintains links with its past. The effect has sometimes been negative–e.g., among Cubans in Florida, but there, too, the mood is changing. The social movements in South America challenged deregulation and privatization more effectively than organized labor has done in North America or Western Europe. If adopted in the United States, this model could build popular pressure for a nationalized health service, massive investment in education and reduced military spending, and against bailouts for the car industry and sinking airlines. Let them fall, so that a public transportation infrastructure can be built based on an ecologically sound and more efficient train service that serves the needs of all. Without action from below, there will be no change from above.

Tariq Ali is an editor at New Left Review. His latest book is The Duel: Pakistan on the Flightpath of American Power (Scribner).

Other Contributions to the Forum

Immanuel Wallerstein, “Follow Brazil’s Example

Bill McKibben, “Together, We Save the Planet

Rebecca Solnit, “The Revolution Has Already Occurred

Robert Pollin, “Be Utopian: Demand the Realistic

John Bellamy Foster, “Economy, Ecology, Empire

Christian Parenti, “Limits and Horizons

Doug Henwood, “A Post-Capitalist Future is Possible

Mike Davis, “The Necessary Eloquence of Protest

Lisa Duggan, “Imagine Otherwise

Vijay Prashad, “The Dragons, Their Dragoons

Workplace Massacre in Alabama: Did Endless Downsizing and Slashed Benefits Cause the Rampage?

Posted in Capitalism, corporations by allisonkilkenny on March 13, 2009

Mark Ames (h/t Alternet)

workplace-violenceThe killing spree in Alabama fits a well-worn pattern of workplace-driven massacres that we’ve seen since the “going postal” phenomenon exploded in the middle of the Reagan revolution.

In spite of the fact that these killings have gone on unabated for over 20 years, most of the country doesn’t want to know why they’re happening — least of all the people in power.

If we study the motive for Michael McLendon’s shooting rampage Tuesday, which left 11 bodies across three towns in southern Alabama, and we look at the bizarre way that the causes of the shooting are being hushed up, you begin to understand why this uniquely-Reaganomics-inspired crime started in the United States, and continues to plague us.

But of all the inexplicable circumstances surrounding the murder spree, one of the oddest has to be the way Alabama authorities went from focusing hard on solving the shooter’s motive to suddenly dropping the issue like a hot potato and running away from the scene of the crime, as if they didn’t like what their investigation produced.

On Wednesday night, investigators announced that they had discovered the motive, and they would reveal it to the world on Thursday morning. 

Investigators close in on motive of Alabama gunman
by Donna Francavilla
SAMSON, Ala. (AFP) — Alabama investigators said they were closing in on a motive for the U.S. state’s deadliest-ever shooting, in which a man killed his mother, grandmother and eight others before taking his own life. The Alabama Bureau of Investigations said there had been “very recent developments that we believe may direct us to a motive” for the grisly rampage, but ABI was quick to dismiss earlier reports that a hit list had been found in the house of the gunman, identified as Michael McLendon.

But then something funny happened on Thursday. Alabama investigators completely reversed themselves: They were now claiming there was no way to find out the motive for the killings, and in fact, no motive ever existed in the first place.

“There’s probably never going to be a motive,” Trooper Kevin Cook, a spokesman for the Alabama Department of Public Safety, said Thursday.

Even the list that provided so many obvious clues as to what sparked the shooting is now no longer the “hit list” or list of people who had “done him wrong,” but rather, “the kind of list you’d put on a magnet on the refrigerator door,” according to Cook.

Which is odd, because just the day before, Cook told reporters, “As to motive, what we do know is that his mother had a lawsuit pending against Pilgrim’s Pride.”

Why the bizarre about-face? We may never know, because Alabama investigators abruptly closed the investigation at noon on Thursday, sending home almost the entire team. Nothing to see here folks, keep moving along.

This raises a new question: What was it about McLendon’s motive that officials wanted hushed? Or better yet: What did Pilgrim’s Pride do that could have incited a man described by all as nice, quiet and respectful to unleash a bloody killing spree?

On the surface, the horrific details seem to suggest a straightforward case of a lone psychopath unleashed: Michael McLendon, 28, shot and killed execution-style his own mother and four dogs, then set their bodies on fire before driving to other relatives’ houses and killing them; he killed a deputy’s wife and baby, along with bystanders; and like so many rampage massacres over the past 20 years, he ended his life inside of his former workplace: Reliance Metal Products, in the small town of Geneva, Ala.

Authorities say they discovered a list — presumably a hit list — of people and companies whom McLendon felt had done him wrong. Popular culture tells us that the hit list and his grievances are themselves signs that he suffered from a persecution complex, like so many Charles Mansons. No need to actually look into who was on that hit list and why — the mere discovery of such a list should be enough to indict him, case closed.

But nothing’s solved, nothing’s closed; and if we’re serious about understanding the “why” of this massacre, as everyone claims to be, then that list is the best place to start.

As with so many of these rage massacres from the past 20 years, the more you look at Tuesdays’ killing spree, the more you see that the system we’ve been living under since Reaganomics conquered everything has created all kinds of monsters and maniacs, from the plutocrats who’ve plundered this country for three decades straight, down to the lone broken worker — McLendon — who took up arms in a desperate suicide mission against the beast that crushed him.

So far we’ve learned that McLendon’s hit list names the three companies he had worked for since 2003 — Reliance Metals, which makes construction materials; Pilgrim’s Pride, the nation’s number one poultry producer, where his mother also worked, until she was suspended from her job last week; and Kelley Foods, a smaller family-owned meat-processing company from which McLendon apparently quit just last week.

Even more striking to someone who has studied these workplace massacres, it appears that McLendon was bullied and abused at work. One clue as to why he’d end his spree at Reliance, where he hadn’t worked since 2003, could be that he was trying to kill the source of the pain: workers at Reliance used to taunt him incessantly, giving him the nickname “Doughboy.” Which basically means “fatso” and “faggot” combined: McLendon was 5 feet, 8 inches tall, but he weighed roughly 210 pounds.

Maybe it’s just a coincidence, but “Doughboy” is the exact same nickname that workers at Standard Gravure, a printing plant in Louisville, Ky., gave to a guy named Joe Wesbecker back in the 1980s.

Like McLendon’s case against Pilgrim’s Pride, Wesbecker also was locked in an ongoing labor dispute with his company, whose top shareholders had gone on an eight-year plundering spree, leaving little for the workers; the government backed Wesbecker’s case against Standard Gravure, and he “won” his dispute, but it was irrelevant.

By 1989, the culture had changed, all power went to the CEOs and major shareholders. Standard Gravure’s senior executives ignored the arbitration rulings and continued to treat Wesbecker however they felt, slashing his pay under a different pretense, which would require a whole new round of arbitrations.

Joe “Doughboy” Wesbecker finally cracked: on Sept. 14, 1989, he unleashed America’s first private workplace massacre, pitting aggrieved worker against vampiric company, borrowing from the numerous post office shootings that had erupted a few years earlier. The result: seven killed, 20 wounded, and the death of the company that drove him to the brink. And an unending string of workplace massacres by “disgruntled employees” ever since.

Next time any asshole calls a kid or a co-worker “Doughboy,” put the bully and the bullied on the top of your next Ghoul Pool list. Bullying in the workplace, like bullying in the schoolyard, is only now being recognized as a serious problem, with devastating psychological consequences — and the occasional rampage massacre.

Conventional wisdom used to say that victims of bullying should “deal with it” since it was “just the way things are”; nowadays, after all the workplace and school shootings, anti-bullying laws and codes are becoming increasingly common.

Keep reading…

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Ukraine On The Brink

Posted in Capitalism, Economy by allisonkilkenny on March 2, 2009

NYT

Dozens waited outside the Rodovid Bank in Kiev on Friday to take money out of their accounts. The bank is close to failing. (Joseph Sywenkyj, NYT)

Dozens waited outside the Rodovid Bank in Kiev on Friday to take money out of their accounts. The bank is close to failing. (Joseph Sywenkyj, NYT)

KIEV, Ukraine — Steel and chemical factories, once the muscle of Ukraine’s economy, are dismissing thousands of workers. Cities have had days without heat or water because they cannot pay their bills, and Kiev’s subway service is being threatened. Lines are sprouting at banks, the currency is wilting and even a government default seems possible.

Ukraine, once considered a worldwide symbol of an emerging, free-market democracy that had cast off authoritarianism, is teetering. And its predicament poses a real threat for other European economies and former Soviet republics.

The sudden, violent protests that have erupted elsewhere in Eastern Europe seem imminent here now, too. Across Kiev last week, people spoke of rising anger about the crisis and resentment toward a government that they said was more preoccupied with squabbling than with rallying the country.

The sign held by Vasily Kirilyuk, an unemployed plumber camped out with other antigovernment demonstrators here in the past week, summed up the pervasive frustration: “Get rid of them all,” it said.

Mr. Kirilyuk did not hesitate to take that further. “There will be a revolt,” he said. “And people will come because they are just fed up.”

Mr. Kirilyuk, 29, was standing in the same central square where throngs in 2004 carried out the Orange Revolution, a seminal event that brought to power a pro-Western government in Ukraine. He said he was a fervent supporter then of the protesters, but now he and a few dozen others who have set up tents here are demanding that the heroes of that revolution step down.

It is not hard to understand why world leaders are increasingly worried about the discontent and the financial crisis in Ukraine, which has 46 million people and a highly strategic location. A small country like Latvia or Iceland is one thing, but a collapse in Ukraine could wreck what little investor confidence is left in Eastern Europe, whose formerly robust economies are being badly strained.

It could also cause neighboring Russia, which has close ethnic and linguistic ties to eastern and southern Ukraine, to try to inject itself into the country’s affairs. What is more, the Kremlin would be able to hold up Ukraine as an example of what happens when former Soviet republics follow a Western model of free-market democracy.

Ukraine is a linchpin for stability in Europe,” said Olexiy Haran, a professor of comparative politics at Kiev Mohyla University. “It is a key player between the expanding European Union and Russia. To use an alarmist scenario, you could imagine a situation in Ukraine that Russia tried to exploit in order to dominate Ukraine. That would make for a very explosive situation on the border of the European Union.”

That Ukraine can cause problems for Europe was highlighted in January when Ukraine engaged in a dispute with Russia over how much it would pay Russia for natural gas, as well as over gas transport to the rest of Europe. The Kremlin shut off the gas for several days, and some European countries went without heat. The Kremlin also shut off gas to Ukraine in 2006 in a pricing dispute.

While Ukraine’s economy is dependent on exports of steel and chemicals, which have plummeted, the crisis has cut deeply because people are disillusioned with the government.

President Viktor A. Yushchenko, a leader of the Orange Revolution, who garnered attention around the world in 2004 when his face was scarred in a poisoning episode, is so widely scorned that a recent poll found that 57 percent of people wanted him to resign.

His rivals have also lost popularity, as the public has become exasperated by years of political bickering. In February, the International Monetary Fund refused to release the next installment of a $16.4 billion rescue loan to Ukraine because the government would not adhere to an earlier agreement to pare its budget.

Around the same time, Ukraine’s finance minister resigned, saying that the job had been “hostage to politics.”

On Friday, the monetary fund projected that Ukraine’s economy would shrink by 6 percent this year, and said that it was continuing to work with the government to find a way to disburse the rest of the rescue loan.

A presidential election is coming, probably to be held next January, and this prospect is making politicians, especially Prime Minister Yulia V. Tymoshenko, reluctant to adopt an austerity program that might alienate voters.

Mr. Yushchenko and Ms. Tymoshenko were pro-Western allies during the Orange Revolution, but have bitterly feuded since then, and he fired her once. A third rival, Viktor F. Yanukovich, a former prime minister who heads an opposition party that favors closer ties with Russia, also wants to be president.

On Friday, Mr. Yushchenko and Ms. Tymoshenko held a public meeting in an effort to demonstrate that they were working together. Mr. Yushchenko said he wanted “to show the readiness of all sides to take political responsibility for decisions which today are not easy.”

Even so, the two did not announce further anticrisis measures.

All over Kiev have been signs that tensions are building.

On the city’s outskirts, more than 200 tractor-trailer rigs were parked Thursday, their drivers threatening to block roads if the government did not help them with their debts, which they said were caused in part by the drop in the value of Ukraine’s currency, the hryvnia.

The truckers dispersed Friday, only after the government said it would try to address their demands, but they said they would be back soon if they were ignored.

“The government is to blame for all this,” said a trucker, Viktor V. Zarichnyuk, 26, who had been at the protest for 12 days. “We want the government and the national bank to agree that the money allocated by the International Monetary Fund, at least part of it, should go to regular people.”

At a branch of the Rodovid Bank across town, a tense crowd gathered Friday morning. The bank, close to failing, was allowing withdrawals of only $35 a day. And so people, some of them pensioners fearful for their life savings, have been trooping each day, ever more aggravated, to try to get what they can.

“Every day we come here — it’s insulting — in the cold and line up,” said Alevtina A. Antonyuk, 58, an engineer. “They are nothing at this bank but a bunch of thieves.”

Who is to blame, she was asked. Before she could answer, Dmitri I. Havrilkiv, 78, a retired crane operator, interrupted.

“The government has to be replaced,” he shouted. “They just can’t handle it!”

Wall Street Has Spawned Our Greatest Terrorist Threat

Posted in Capitalism, Economy, politics, poverty by allisonkilkenny on February 17, 2009

Chris Hedges, Truthdig

Riots have become common occurrences in many countries as the financial meltdown continues. The U.S. military is preparing to quell civil unrest at home. (AP)

Riots have become common occurrences in many countries as the financial meltdown continues. The U.S. military is preparing to quell civil unrest at home. (AP)

We have a remarkable ability to create our own monsters. A few decades of meddling in the Middle East with our Israeli doppelgänger and we get Hezbollah, Hamas, al-Qaida, the Iraqi resistance movement and a resurgent Taliban. Now we trash the world economy and destroy the ecosystem and sit back to watch our handiwork. Hints of our brave new world seeped out Thursday when Washington’s new director of national intelligence, retired Adm. Dennis Blair, testified before the Senate Intelligence Committee. He warned that the deepening economic crisis posed perhaps our gravest threat to stability and national security. It could trigger, he said, a return to the “violent extremism” of the 1920s and 1930s.

It turns out that Wall Street, rather than Islamic jihad, has produced our most dangerous terrorists. You wouldn’t know this from the Obama administration, which seems hellbent on draining the blood out of the body politic and transfusing it into the corpse of our financial system. But by the time Barack Obama is done all we will be left with is a corpse—a corpse and no blood. And then what? We will see accelerated plant and retail closures, inflation, an epidemic of bankruptcies, new rounds of foreclosures, bread lines, unemployment surpassing the levels of the Great Depression and, as Blair fears, social upheaval.

The United Nations’ International Labor Organization estimates that some 50 million workers will lose their jobs worldwide this year. The collapse has already seen 3.6 million lost jobs in the United States. The International Monetary Fund’s prediction for global economic growth in 2009 is 0.5 percent—the worst since World War II. There are 2.3 million properties in the United States that received a default notice or were repossessed last year. And this number is set to rise in 2009, especially as vacant commercial real estate begins to be foreclosed. About 20,000 major global banks collapsed, were sold or were nationalized in 2008. There are an estimated 62,000 U.S. companies expected to shut down this year. Unemployment, when you add people no longer looking for jobs and part-time workers who cannot find full-time employment, is close to 14 percent.

And we have few tools left to dig our way out. The manufacturing sector in the United States has been destroyed by globalization. Consumers, thanks to credit card companies and easy lines of credit, are $14 trillion in debt. The government has pledged trillions toward the crisis, most of it borrowed or printed in the form of new money. It is borrowing trillions more to fund our wars in Afghanistan and Iraq. And no one states the obvious: We will never be able to pay these loans back. We are supposed to somehow spend our way out of the crisis and maintain our imperial project on credit. Let our kids worry about it. There is no coherent and realistic plan, one built around our severe limitations, to stanch the bleeding or ameliorate the mounting deprivations we will suffer as citizens. Contrast this with the national security state’s strategies to crush potential civil unrest and you get a glimpse of the future. It doesn’t look good.

“The primary near-term security concern of the United States is the global economic crisis and its geopolitical implications,” Blair told the Senate. “The crisis has been ongoing for over a year, and economists are divided over whether and when we could hit bottom. Some even fear that the recession could further deepen and reach the level of the Great Depression. Of course, all of us recall the dramatic political consequences wrought by the economic turmoil of the 1920s and 1930s in Europe, the instability, and high levels of violent extremism.”

The specter of social unrest was raised at the U.S. Army War College in November in a monograph [click on Policypointers’ pdf link to see the report] titled “Known Unknowns: Unconventional ‘Strategic Shocks’ in Defense Strategy Development.” The military must be prepared, the document warned, for a “violent, strategic dislocation inside the United States,” which could be provoked by “unforeseen economic collapse,” “purposeful domestic resistance,” “pervasive public health emergencies” or “loss of functioning political and legal order.” The “widespread civil violence,” the document said, “would force the defense establishment to reorient priorities in extremis to defend basic domestic order and human security.”

“An American government and defense establishment lulled into complacency by a long-secure domestic order would be forced to rapidly divest some or most external security commitments in order to address rapidly expanding human insecurity at home,” it went on.

“Under the most extreme circumstances, this might include use of military force against hostile groups inside the United States. Further, DoD [the Department of Defense] would be, by necessity, an essential enabling hub for the continuity of political authority in a multi-state or nationwide civil conflict or disturbance,” the document read.

In plain English, something bureaucrats and the military seem incapable of employing, this translates into the imposition of martial law and a de facto government being run out of the Department of Defense. They are considering it. So should you.

Adm. Blair warned the Senate that “roughly a quarter of the countries in the world have already experienced low-level instability such as government changes because of the current slowdown.” He noted that the “bulk of anti-state demonstrations” internationally have been seen in Europe and the former Soviet Union, but this did not mean they could not spread to the United States. He told the senators that the collapse of the global financial system is “likely to produce a wave of economic crises in emerging market nations over the next year.” He added that “much of Latin America, former Soviet Union states and sub-Saharan Africa lack sufficient cash reserves, access to international aid or credit, or other coping mechanism.”

“When those growth rates go down, my gut tells me that there are going to be problems coming out of that, and we’re looking for that,” he said. He referred to “statistical modeling” showing that “economic crises increase the risk of regime-threatening instability if they persist over a one to two year period.”

Blair articulated the newest narrative of fear. As the economic unraveling accelerates we will be told it is not the bearded Islamic extremists, although those in power will drag them out of the Halloween closet when they need to give us an exotic shock, but instead the domestic riffraff, environmentalists, anarchists, unions and enraged members of our dispossessed working class who threaten us. Crime, as it always does in times of turmoil, will grow. Those who oppose the iron fist of the state security apparatus will be lumped together in slick, corporate news reports with the growing criminal underclass.

The committee’s Republican vice chairman, Sen. Christopher Bond of Missouri, not quite knowing what to make of Blair’s testimony, said he was concerned that Blair was making the “conditions in the country” and the global economic crisis “the primary focus of the intelligence community.”

The economic collapse has exposed the stupidity of our collective faith in a free market and the absurdity of an economy based on the goals of endless growth, consumption, borrowing and expansion. The ideology of unlimited growth failed to take into account the massive depletion of the world’s resources, from fossil fuels to clean water to fish stocks to erosion, as well as overpopulation, global warming and climate change. The huge international flows of unregulated capital have wrecked the global financial system. An overvalued dollar (which will soon deflate), wild tech, stock and housing financial bubbles, unchecked greed, the decimation of our manufacturing sector, the empowerment of an oligarchic class, the corruption of our political elite, the impoverishment of workers, a bloated military and defense budget and unrestrained credit binges have conspired to bring us down. The financial crisis will soon become a currency crisis. This second shock will threaten our financial viability. We let the market rule. Now we are paying for it.

The corporate thieves, those who insisted they be paid tens of millions of dollars because they were the best and the brightest, have been exposed as con artists. Our elected officials, along with the press, have been exposed as corrupt and spineless corporate lackeys. Our business schools and intellectual elite have been exposed as frauds. The age of the West has ended. Look to China. Laissez-faire capitalism has destroyed itself. It is time to dust off your copies of Marx.

You Heart Corruption

Posted in Capitalism, deregulation, Economy, regulation by allisonkilkenny on December 21, 2008

“‘Corruption is government intrusion into market efficiencies in the form of regulations.’ That’s Milton Friedman. He got a goddamn Nobel Prize! We have laws against it precisely so we can get away with it! Corruption is our protection! Corruption keeps us safe and warm! Corruption is why you and I are prancing around in here instead of fighting over scraps of meat out in the streets! Corruption is why we win!”

terrorist_149985The quote is from the film Syriana, and the character that delivers the passionate/delusional diatribe is Danny Dalton, a Texas oilman and member of Committee to Liberate Iran. Dalton is a patsy, and is being charged with “corruption” in order to protect a much larger, much more corrupt corporation standing behind him. He’s a fall-guy, and that’s why he flies off the handle.

Watching the Bush administration and Wall Street executives’ gulp and thrash like beached fish made me think of little Dalton. The stock market isn’t a force of nature. It takes men and women (but mostly men) creating very corrupt policies to create America’s initial wealth, and then her downfall.

Everyone needs to stop acting like they’re surprised by the recession. It’s not cute, and it’s painfully insincere.

There’s been a proliferation of handwringing and philosophizing about what caused the economic collapse, why there was little impetus to aggressively address a rotting subprime industry, why our politicians were too lazy, slow, or indifferent to do something to address Wall Street’s broken ways.

Times of economic woes are the only time our society collectively examines the Free Market, and the effects of globalization — rarely on the world — but on us, Americans. How will this screw us? How long will it last? How will this vast machine affect us parochially?

Americans pretend like this is the others’ problem, and that they don’t also benefit from our corrupt society. Wall Street practices are certainly corrupt, but the problem isn’t contained to mortgage lenders, banks, and insurance companies. It’s pandemic and it has infected every facet of the American way of life.

The dirty truth no one wants to admit is that corruption floats America to the top. Only by utilizing cheap labor, deregulation, and speculative lending can our markets create extraordinary wealth. Wall Street occasionally acts as though it has just awoken from a strange nightmare because it’s necessary to act moral every now and then, namely when the press shows up.

Now is the time financial experts act like they have no idea how market bubbles inflate, CEOs get bonuses 100 times their annual salaries, and people like Bernie Madoff exist.

Regulation is trendy right now, but what that actually entails may surprise Americans. If our government seriously regulated the Free Market, and extended that moral behavior to the international community with living wages and humane worker conditions, it would profoundly change the way Americans live.

The price of our food, clothing, and other goods would increase. Fuel would skyrocket. Everything would be more expensive, and we would have to do with a lot less. CEOs would surrender their penthouses and yachts. Certain exotic fruits like bananas would suddenly cost much more now that Central American workers are permitted to unionize and demand living wages.

On the plus side, maybe less children would die and more people could have a shot at stability and happiness. Maybe cases of infectious disease would decline. Maybe people would drive less. Maybe we could save the world.

Of course, Americans would have to sacrifice, and they have a history of hating that. But things are changing now. There’s a murmur in this society, and it seems to be saying: Our way of life is broken. We need to fundamentally change the way we live.

People want regulation. They want less enormous wealth and extraordinary poverty. They want balance and justice. But they have to stop looking to the men that made the corruption to fix the problem. Americans have to demand the presence of independent sheriffs to watch industry 24/7 in order to right the wrongs of our corrupt past.

If regulation actually existed, things would be a lot less cushy for Americans, which would probably be a good thing, but some may suddenly miss that corruption that kept them so sheltered for so long.

Kucinich Hands Kashkari His Own Ass

Posted in politics by allisonkilkenny on November 15, 2008

neel_kashkari_1007Background on Kashkari, the most irronically named man in Washington and the evilest-looking Treasury employee since, well…Henry Paulson:

Time

The government’s $700 billion bailout plan is in the hands of this man. Neel Kashkari, a relatively green assistant secretary in the Treasury department, will be responsible for the government’s purchasing of billions of dollars of bad assets from banks and other financial agencies. His career has been a short one.

Personal Life

• Kashkari grew up in Stow, Ohio, an Akron suburb. As a high school student, he was a fan of heavy metal bands like AC/DC, whose lyrics dot his high school yearbook. He is 35 years old.

• He comes from a family of scientists. Father Chaman has a doctorate in engineering, and won a Presidential award for his work in getting water to African villages. Kashkari’s mother, Sheila, is a retired pathologist, and his sister Meera, specializes in infectious diseases.

• Accordingly, Kashkari also studied science, getting his masters in engineering from the University of Illinois, Urbana-Champaign

• He and his wife Minal live in Silver Spring, Maryland, with their dog Winslow.

Career

• Neel’s first job was as an aerospace engineer at TRW, where he worked on technology for NASA projects such as the Webb Space Telescope, which is due to replace the Hubble.

• He decided to change careers and go to Wharton Business School at the University of Pennsylvania. After getting his MBA, Kashkari joined Goldman Sachs in San Francisco, specializing in IT security.

• He followed former Goldman Sachs CEO Henry Paulson to the Treasury Department, where he was hired as a senior adviser in 2006. In short order, he was assigned to work on the department’s response to the housing crisis, during which time he grew close to Paulson.

Notable Quotes

“Neel Kashkari is not going to be in Washington much longer if there’s a change in administrations. And that’ll cause some kind of turbulence.”—Madeline Brand, of National Public Radio, on the fact that Kashkari might have to leave after only a few months on the job, Oct. 6, 2008

“When he does anything, if you ask him to make an electric car or ask him to plan an outing to Niagara Falls, he is so meticulous.”—Chaman Kashkari, father, USA Today, October 6, 2008

“I’m a free-market Republican.”Kashkari, at an American Enterprise Institute conference, Sept. 19, 2008

 

Oh really? And yet he couldn’t wait for big daddy government to swoop in and stuff his pockets with taxpayer cash when the free market failed. In a rare display of testicles, Congress absolutely tore into Kashkari, but Dennis Kucinich positively MVPed it. Now, if only they would back-up the tough talk with some serious oversight.

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Ralph Nader/Matt Gonzalez Wall Street Bailout Rally

Posted in Uncategorized by allisonkilkenny on October 18, 2008