Last Man Scrambling

14 Tuesday Aug 2012

Posted by xraymike79 in Capitalism, Corporate State, Inequality, Wall Street Fraud

Tags

Ayn Rand, Climate Change, Corporate State, Corporatocracy, Financial Elite, Gross Inequality, Inverted Totalitarianism, Mitt Romney, Neoliberal Capitalism, Paul Rosenberg, Paul Ryan, Privatization, Record Corporate Profits, Record Low Corporate Tax Burden, Richard Heinberg, The Elite 1%

If Ayn Rand was alive today, she would believe that climate change was a conspiracy theory.

I want to preface this post by saying I don’t endorse either Wall Street stooge of our political system’s two-headed corporate hydra monster. The Democratic party fell sway to Big Money a long time ago. See ‘Death of the Liberal Class‘ by Chris Hedges. But I do want to focus on the party that doesn’t mince words or even pretend (at least not very well for those who read) to represent the greater good of society. The primary ideology of the Republicans (and faux Democrats) is neoliberal capitalism whose tenets are laid out here. If there ever was a time when ‘the greater good’ should be our primary objective, the time is now. We are facing an environmental crisis, financial crisis, economic system crisis, food crisis, energy crisis, wealth disparity crisis, etc. Oh, I should have mentioned we’re also facing the ~~possible~~ probable extinction of our own species. But the modus operandi that the ~~our leaders~~ rulers are following is not to solve any of the civilization-ending crises, but to do what Richard Heinberg described as the “Last Man Standing” strategy:

I thought that world leaders would want to keep their nations from collapsing. They must be working hard to prevent currency collapse, financial system collapse, food system collapse, social collapse, environmental collapse, and the onset of general, overwhelming misery—right? But no, that’s not what the evidence suggests. Increasingly I am forced to conclude that the object of the game that world leaders are actually playing is not to avoid collapse; it’s simply to postpone it a while so as to be the last nation to go down, so yours can have the chance to pick the others’ carcasses before it meets the same fate.

The elite 1% are playing a similar game against the 99% which I call “The Last Man Scrambling”. Paul Rosenberg’s latest essay discusses a 2006 book by Yale University political scientist Jacob S. Hacker who explains how the 99% are being financially eaten alive by what is termed the “risk-shift” – the systematic shifting of risk from large institutions onto the backs of citizens, including the most vulnerable among us, under the neoliberal rhetoric of “individuals taking personal responsibility”:

…The figures Hacker cited were staggering. First, regarding basic economic security: Personal bankruptcies increased from 300,000 in 1980 to 2 million in 2005 – a 567 per cent increase. The chance that an average American’s income will drop 50 per cent or more over a two-year period increased from 7 per cent in the 1970s to 17 per cent in 2002 – a 143 per cent increase. Long-term unemployment (more than 6 months) at the peak of the business cycle is triple what it was in the 1960s.

Second, regarding health security: The number of Americans without health insurance was 46.6 million, up from about 24 million in 1980. The decline was entirely due to cuts in employer-provided health coverage. Worse still, over 80 million Americans lack health insurance over some time during a two-year period.

Third, regarding retirement security: The percentage of large and medium-sized corporations offering traditional “defined-benefit” pensions, with a guaranteed monthly benefit for life, fell from more than 80 per cent in 1980 to less than a third in 2006. And 401(k)s that replaced them? There’s a reason folks call them 201(k)s now.

Fourth, the burden was particularly hard on families with children, whom conservatives claim to care about most. Their bankruptcy rates are twice that of childless couples.

These are just a few of the frightening figures Hacker cited, and in every case, he argued, the basic cause was the same: risk had been systematically shifted from large institutions most capable of handling it onto the shoulders of the most vulnerable. This was largely a result of a rhetoric of “personal responsibility”, but what was actually being shifted was not responsibility, but risk.

Rosenberg then ties this in with what Romney/Ryan have planned for the American plebs:

So what does all that have to do with Paul Ryan? Simple: Ryan’s infamous budget plan has many well-known problems with it, but it would also vastly intensify the Great Risk Shift, as Democratic strategist Mark Schmitt cogently pointed out in April 2011 (“The Ryan Plan: The Biggest Risk Shift Ever“).

“It’s not just that Ryan slashes spending,” Schmitt wrote, “he places the burden of risk on American families’ shoulders.” That’s precisely what the Great Risk Shift has done step-by-step over the past 30 years. With the Ryan plan, the process would be dramatically accelerated.

In one concise paragraph, Schmitt summarised Hacker’s point about the true value and function of the welfare state that America’s elites have been gradually dismantling since the 1970s:

The achievement of the New Deal and the Great Society was not primarily in providing benefits to the poor and the old, although that’s often how both liberals and conservatives talk about it now. What those programmes did best was to reduce risks for individuals by sharing them across society. Whether it was health insurance through Medicare and Medicaid, insurance against poverty in old age through Social Security, federal mortgage insurance that made homeownership possible, or the Federal Deposit Insurance Corporation that enabled people to save for the future with confidence, when government absorbed and shared some of the risks of life, individuals were able to take chances and make the most of their potential.

And, in contrast, he noted:

Today, though, the only risks we’re sharing are the wrong ones: Wealthy investors are protected by real or implicit guarantees such as “too big to fail,” while the risks that should be shared, through social insurance, are instead privatised – that is, pushed down the line onto us as individuals.

So that’s what you call “The Last Man Scrambling” –for a livable-wage job, for affordable health care, for food on the table… Forget retirement; most will now die with their working boots on. And all this occurs while corporate profits soar to their highest level since WWII and the corporate tax burden sinks to its lowest level...

The Political Circus and the Approaching Post-Human Era

13 Monday Aug 2012

Posted by xraymike79 in Capitalism, Corporate State, Empire, Inequality, Wall Street Fraud

≈ 2 Comments

Tags

Bain Capital, Collapse of Industrial Civilization, Corporate State, Economic Collapse, Financial Elite, Gross Inequality, Inverted Totalitarianism, Matt Taibbi, Obama, Off-Shore tax Havens, Post-Humn Era, Romney, Security and Surveillance State, South American Death Squad Oligarchs, The Elite 1%, Wall Street Fraud, War for Profit

Here is a nice little skewering of King Romney by Cliff Schecter entitled Mitt Romney: The aristocrat. Some excerpts:

…if you knew you were running for president, wouldn’t you perhaps spend at least five years before running making your taxes look as clean as a whistle? I’m saying no Grand Caymans, no Switzerland, no stashing bullion in the cargo bay of Curiosity to reach the low-tax surface of Mars (ok, one of these might be an exaggeration).

Not Romney, though. He apparently had to use every manoeuvre known to man and man’s most deceitful accountant to ensure he paid low-to-no taxes. So how has he handled the fallout? Stonewalling, uncomfortable denials, and lashing out at those who attack him for his hidden returns, such as Senator Harry Reid – thereby keeping the whole story in the news that much longer (genius!).

He’s even got porn star Jenna Jameson saying she is going to vote for him because “when you’re rich, you want a Republican in office.” (Of course, other porn actors interviewed by The Daily Beast are pro-Obama, showing that even in the world of X-rated entertainment, Mitt can find a way to divide the top 1 per cent from everyone else)…

Amazingly, if you look at the polls, a large percentage of American’s(aka the clueless, MSM spoon-fed plebs) would still vote for someone who is part of the cosseted 0.001% responsible for hiding 20 to 30 trillion in off-shore tax havens and who boldly regurgitate the lie that corporations in America have the highest tax rate in the world (the nominal rate is meaningless; it’s the effective rate produced from all the tax loopholes that counts). But as they say, the propaganda-ridden minds of the American public are mere putty in the hands of the corporate-owned media machine. Mind you, I know there is no real measurable difference between Obama and Romney when it comes to our self-inflicted trajectory toward a post-human era, but voting for Romney, a financier of the criminal class on Wall Street, takes ‘voting against your own interests’ to a whole new level. I mean this guy financed Bain Capital with blood money from death squad oligarchs in South America. I understand the utter failure Obama has been for the masses who bought into the “Hope” slogan, but voting for King Romney is like saying, “I give up; please rape me and then throw me to the lions.”

In a comment section of Schecter’s piece, a reader sumarizes perfectly what King Romney is about:

Let us focus that the issue is not Rommey or the VP RP, the issue is what is behind Rommey. Rommey is the representative of global capitalism; he is not interested in the American people as a nation, but as consumers; for him the solvency of the middle class is of no importance. It is the maintenance of corporate America and global capital that matters for him. He advocates trickle down economics and the emancipation of corporations over people. [In] the end Rommey, like any other warmonger, will use war [as] an economic incentive.

– ’nuff said. So how are the American plebs doing? For starters, a recent study found that nearly half the population in the U.S. dies penniless and dependent on Social Security. Basically we are now a nation of the grotesquely wealthy, the ‘just-getting-by’, and the crumb scrapers. The ‘just-getting-by’ segment is always in danger of falling into the ranks of the crumb scrapers. And the elite 1%, as we have discussed in prior posts, have built up a security and surveillance state as well as the prison industrial complex in order to deal with those who have any funny ideas of changing that status quo.

…now back to our two corporate stooges who are vying for the coveted PR position of the corporatocracy. Matt Taibbi has a new article out which shows how our tax system favors the wealthy and how Big Money from Wall Street perverts our political system:

…We’ve known for seven months now, for instance, that Romney paid $3 million in federal taxes in 2010 on $21.7 million in taxable revenue, an effective tax rate of 13.9 percent. Which, as most people know, is less than half the rate most people pay on their income tax.

When Romney released these numbers, he said they were “entirely legal and fair,” and added, “I’m proud of the fact that I pay a lot of taxes.”

The Romney tax returns are a prime example of our increasingly two-tiered bureaucratic system, in which there is one set of rules for poor and middle-class people, and another set of rules for people like Mitt Romney. …

<snip>

In Mitt’s case, the money you and I make to support ourselves is called income and is taxed up to 35 percent, but the money Mitt makes raiding companies with borrowed money and extracting draconian management fees from captive companies that have no choice but to pay them is called “Carried Interest,” and taxed at a top rate of 15%.

The ostensible excuse for this outrageous difference is based upon a built-in cultural value judgment, which says that the work Mitt Romney does raiding companies with borrowed money is more valuable than the work ordinary people do laying asphalt or teaching autistic children. Here’s what one private equity spokesperson said by way of explanation for this difference:

Steve Judge, the president of the Private Equity Growth Capital Council, a trade group for private equity funds, said carried interest is a way to reward risk takers in a way that tax havens do not. “They don’t have the purpose of incentivizing risk taking,” Judge said. “That makes it inappropriate to blend carried interest with them.”

So the carried interest tax break is a way to “incentivize” the kind of work Mitt Romney does. One wonders then if the relatively higher tax rates paid by teachers and librarians and cops is … what? A disincentive? Anyway, it’s this skewed set of obligations that Mitt Romney thinks is “fair.”

The Obama administration, if it wanted to, could make a lot of hay over this. It could say, “Mitt Romney doesn’t want to release his tax returns for years and years during the last decade. But the years for which he did release returns, he paid a rate that’s less than half of what most ordinary American professionals make – and he thinks that’s ‘fair.’”

Now, Obama has gone after Mitt’s tax returns – a little. He’s released a few ads here and there, including one called “Makes You Wonder” that called Mitt’s use of carried interest in his tax return a “trick,” a semantic move for which Obama was criticized, since it was actually nothing of the sort. Mitt Romney’s ability to pay a top rate of 15% for his work was no trick at all but a fully-legal expression of the values of our current political system, a system, again, that Mitt Romney is “proud of” and thinks is “fair.”

The reason the Obama administration hasn’t gone after this aggressively is probably the same reason it hasn’t fought harder to repeal that carried interest tax break (which Obama incidentally promised to do four years ago), and the same reason that everyone from Corey Booker to Bill Clinton has urged Obama to lay off the theme of private equity thuggery in his campaign against Romney. Big-time politicians are still afraid to explain to the American people how exactly it is that many Wall Street firms make their money, because they’re afraid to lose access to the crumbs those firms sometimes toss their way.

In the case of Romney, what we’ve mostly heard is that he’s a turnover specialist who sometimes creates jobs and sometimes eliminates them – a kind of ideologically-neutral efficiency consultant who takes a cut when poorly-run companies cut out the fat. The Obama ads about Bain have been emotionally effective, but they’re still frustratingly vague about the actual mechanics of these takeovers. We learn from these ads that a bunch of rich guys took over plants and fired workers, but what we don’t learn is how companies like Bain raise the money for those takeovers, why the plants subsequently become cash-poor, how this industry works generally, and not just at Bain.

In fact the takeover method espoused by Bain and many other private equity firms is a lot closer to the Tony Soprano-takes-over-Davey-Scatino’s-sporting-goods-store “Bust Out” model (and we’ll be getting into this more in the magazine in upcoming weeks) than it is to anything like legitimate consulting.

Barack Obama is one of the few politicians with the communication skills to explain this to middle America, but he’s refusing to go there, probably because he’s still hoping for a post-election rapprochement with Wall Street. He wants to go after Bain Capital, but not private equity in general; he wants to go after Mitt Romney’s missing tax returns, but not the tax returns of all people like Mitt Romney.

So there you have it. Both sock-puppet politicians continue to protect the monied interests, skirt the real issues, and bamboozle the sheeple. But as I said, in a post-human era of the not-too-distant future, you can’t get too riled up about such trivialities.

The Amorality of Science and the Rise of Transnational Capitalism

09 Thursday Aug 2012

Posted by xraymike79 in Capitalism, Corporate State, Inequality

≈ Leave a comment

Tags

Capitalism, Chris Hedges, Corporate State, Corporatocracy, Financial Elite, Gross Inequality, Inverted Totalitarianism, Poverty, Robert Hunziker, Social Unrest, The Elite 1%, Transnational Capitalism, Weapons of Mass Destruction

Continuing on my last post’s theme of technology and man’s insatiable quest for more lethal weapons, Chris Hedges wrote an article this week in remembrance of the 60th anniversary of the Hiroshima and Nagasaki bombings. He reminds us that science and technology are amoral, advancing of their own accord, and that they have become the new religion, heralding solutions to all that ails modern man. Geoengineering, anyone?

The atomic blasts, ignited in large part to send a message to the Soviet Union, were a reminder that science is morally neutral. Science and technology serve the ambitions of humankind. And few in the sciences look beyond the narrow tasks handed to them by corporations or government. They employ their dark arts, often blind to the consequences, to cement into place systems of security and surveillance, as well as systems of environmental destruction, that will result in collective enslavement and mass extermination. As we veer toward environmental collapse we will have to pit ourselves against many of these experts, scientists and technicians whose loyalty is to institutions that profit from exploitation and death…

It was science, industry and technology that made possible the 20th century’s industrial killing. These forces magnified innate human barbarity. They served the immoral. And there are numerous scientists who continue to work in labs across the country on weapons systems that have the capacity to exterminate millions of human beings. Is this a “rational” enterprise? Is it moral? Does it advance the human species? Does it protect life?

For many of us, science has supplanted religion. We harbor a naive faith in the godlike power of science. Since scientific knowledge is cumulative, albeit morally neutral, it gives the illusion that human history and human progress also are cumulative. Science is for us what totems and spells were for our premodern ancestors. It is magical thinking. It feeds our hubris and sense of divine empowerment. And trusting in its fearsome power will mean our extinction…

Now on to the second point – Transnational Capitalism. This is an excellent article written by a former hedge fund manager that gives an overall, system-wide summation of the capitalist system controlling the world. It’s well worth the read and helps to flesh out what I have alluded to in other posts – the emergence of an elite capitalist class that has no allegiance to any country and shares more in common with its global members than with the fellow countrymen and the nation-state from whence they originated. Some excerpts:

This federation of convenience by the global elite is a lingering problem for the lower economic classes in America. The U.S.-based CEO of one of the world’s largest hedge funds told Chrystia Freeland that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues argued that the hollowing-out of the American middle class didn’t really matter. “His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade.” Notice the CEO’s reference to “not such a bad trade” as representative of free market lingo, i.e., “trade.” Everything is measured in trade terms, like statistics, if you look in the mirror, you’ll see the reflection of a commodity.

This viewpoint is typical of how the global ruling class thinks, and proof positive of it is reflected in today’s politics in America. The right wing embodies this same viewpoint by striving to strip the federal government of public welfare services, privatizing governmental assets, and undercutting benefits to society at large, especially via manipulation of the federal tax code. This same occurrence is happening in real time right now in Greece, Spain, and Portugal as the cadre of elite technocrats out of Brussels, de facto capital of the EU, dictate nation-state policies to those three forlorn countries. The world’s elites love hard times/recessions because of the set up. It makes it easier for them to strip away government largess via austerity programs that they force upon governments, and it allows for undercutting the wages of average citizens as well as dismantling of governmental regulations. This, in turn, prompts protestors to congregate in the streets of capital cities, but over time, the capitalist class waits them out, temporarily residing in one of their homes elsewhere, away from danger, and with time on their side, the capitalists win.

Upon reading Chrystia Freeland’s article in Atlantic Magazine, one comes away with the impression the elite capitalists look down with disdain upon the masses of people, expressing a contempt for those in society who do not have the personal merit to rise to the occasion of wealth and power. Meritocracy is their biblical source, not equality and fraternity. These are hackneyed terms from ‘America of old’ and no longer applicable in the new technologically enhanced world, which itself is the major source of many of the new self-made wealthy.

This global ruling class controls the levers of an emergent trans-national state apparatus of global decision-making and orders emanate from the IMF, World Bank, the EU, and the WTO. The ruling bloc of this world order consists of chieftains of global corporations and financial conglomerates, major players in the dominant political parties of the world, media conglomerates, and technocratic elites….

…

According to William Robinson: Transnational capital has been able to break free of nation-state constraints to shift the correlation of class and social forces worldwide sharply in its favour and to undercut the strength of popular and working class movements around the world. One new structural dimension of 21st century global capitalism is a dramatic expansion of the global superfluous population or that portion marginalized and locked out of productive participation … constituting some one-third of humanity. The need to assure the social control of this mass of humanity living in slums gives a powerful impetus to neo-fascist projects and facilitates the transition from social welfare to social control, otherwise known as police states. Over time, this system becomes ever more violent and the ability of economic power to determine electoral outcomes opens the door for 21st century fascism to emerge without a rupture in electoral cycles and/or a constitutional change.

The door for 21st century fascism has more than opened. It has been blown off the hinges…

Just as science is amoral, so is capitalism which treats everything living and inanimate as a commodity ripe for exploitation. Welcome to a world ruled by the new globe-trotting, predatory elite who will profit from what remains of the planet’s depleting resources and exhausted ecosystems while paying no heed to the plight of the masses or future generations.

“Earth provides enough to satisfy every man’s needs, but not every man’s greed.”
~ Mahatma Gandhi

Rest in Peace, Gore Vidal, for the Empire is Not Far Behind You

06 Monday Aug 2012

Posted by xraymike79 in Capitalism, Consumerism, Corporate State, Empire, Inequality, Wall Street Fraud

≈ Leave a comment

Tags

Consumerism, Corporate State, Corporatocracy, Empire, Gore Vidal, Gross Inequality, Inverted Totalitarianism, Police State, Poverty, Security and Surveillance State, The Elite 1%, Wall Street Fraud, War on Terror

Growing up in the seat of American power gave Gore Vidal, historian and scathing critic of the Empire, a front row seat to its inner workings. He was raised in Washington, D.C. at the home of his grandfather, Oklahoma Senator Thomas P. Gore. Being related to Jacqueline Kennedy, he held close ties to the Kennedy clan. He was also distantly related to Al Gore and Jimmy Carter. Gore Vidal himself ran for public office twice, once for Congress in 1960 in New York and once for the U.S. Senate in California in 1982. He knew his subject well enough to speak of the skeletons in its closet and the truth behind the glossy facade. In fact, he once said, “You know, I’ve been around the ruling class all my life, and I’ve been quite aware of their total contempt for the people of the country.”

My belated tribute to Gore Vidal will simply be to present twelve quotes from him and let his words speak for themselves. You could do much worse with your time than to spend it studying the writings of Gore Vidal:

The genius of our ruling class is that it has kept a majority of the people from ever questioning the inequity of a system where most people drudge along, paying heavy taxes for which they get nothing in return.

~~~~~~~

…fifty years ago, Harry Truman replaced the old republic with a national-security state whose sole purpose is to wage perpetual wars, hot, cold, and tepid. Exact date of replacement? February 27, 1947. Place: The White House Cabinet Room. Cast: Truman, Undersecretary of State Dean Acheson, a handful of congressional leaders. Republican senator Arthur Vandenberg told Truman that he could have his militarized economy only IF he first “scared the hell out of the American people” that the Russians were coming. Truman obliged. The perpetual war began. Representative government of, by, and for the people is now a faded memory. Only corporate America enjoys representation by the Congress and presidents that it pays for in an arrangement where no one is entirely accountable because those who have bought the government also own the media. Now, with the revolt of the Praetorian Guard at the Pentagon, we are entering a new and dangerous phase. Although we regularly stigmatize other societies as rogue states, we ourselves have become the largest rogue state of all. We honor no treaties. We spurn international courts. We strike unilaterally wherever we choose. We give orders to the United Nations but do not pay our dues…we bomb, invade, subvert other states. Although We the People of the United States are the sole source of legitimate authority in this land, we are no longer represented in Congress Assembled. Our Congress has been hijacked by corporate America and its enforcer, the imperial military machine…

~~~~~~~

We should stop going around babbling about how we’re the greatest democracy on earth, when we’re not even a democracy. We are a sort of militarised republic.

~~~~~~~

Apparently, a democracy is a place where numerous elections are held at great cost without issues and with interchangeable candidates.

~~~~~~~

Think of the earth as a living organism that is being attacked by billions of bacteria whose numbers double every forty years. Either the host dies, or the virus dies, or both die.

~~~~~~~

…I think it is tragic that the poor man has almost no chance to rise unless he is willing to put himself in thrall to moneyed interests.

~~~~~~~

Happily for the busy lunatics who rule over us, we are permanently the United States of Amnesia. We learn nothing because we remember nothing.

~~~~~~~

We have ceased to be a nation under law but instead a homeland where the withered Bill of Rights, like a dead trumpet vine, clings to our pseudo-Roman columns.

~~~~~~~

We must always remember that the police are recruited from the criminal classes.

~~~~~~~

The hatred Americans have for their own government is pathological, if understandable. At one level it is simply thwarted greed: since our religion is making a buck, giving a part of that buck to any government is an act against nature.

~~~~~~~

As societies grow decadent, the language grows decadent, too. Words are used to disguise, not to illuminate, action: you liberate a city by destroying it. Words are to confuse, so that at election time people will solemnly vote against their own interests.

~~~~~~~

Every four years the naive half who vote are encouraged to believe that if we can elect a really nice man or woman President everything will be all right. But it won’t be. Any individual who is able to raise $25 million to be considered presidential is not going to be much use to the people at large. He will represent oil, or aerospace, or banking, or whatever moneyed entities are paying for him. Certainly he will never represent the people of the country, and they know it. Hence, the sense of despair throughout the land as incomes fall, businesses fail and there is no redress.

Kevin Gosztola at the FDL Dissenter Blog has a nice post remembering the perceptive brilliance of the now-deceased author entitled, Gore Vidal on the ‘National Security State’ of America. Here are a couple choice quotes from the video-taped speech by Gore Vidal:

…In the State Department we used to discuss how much time that mythical average American citizen put in each day listening, reading, and arguing about the world outside his country. It seemed to us that ten minutes a day would be a high average.” So why bore the people? Secret bipartisan government is best for what, after all, is or should be a society of docile workers, enthusiastic consumers, obedient soldiers who will believe just about anything for at least ten minutes…

…Of course, there were elections during the crucial time, but Truman-Dewey, Eisenhower-Stevenson, Kennedy-Nixon were of a single mind as to the desirability of inventing first a many-tentacled enemy–communism, the star of the chamber of horrors–then, to combat so much evil, install a permanent wartime state at home, with loyalty oaths, the national peacetime draft, and secret police to keep watch over homegrown traitors, as the few enemies of the national security state were known.

Then followed forty years of mindless wars, which created a debt of $5 trillion that hugely benefited aerospace companies and firms like General Electric, whose longtime TV spokesman, Ronald Reagan, eventually retired to the White House…

Mr. Vidal, you told the truth with wit and wisdom and may you now rest in peace for that valuable legacy.

A Bed in a For-Profit Prison is Waiting for You

05 Sunday Aug 2012

Posted by xraymike79 in Capitalism, Corporate State, Inequality

≈ Leave a comment

Tags

Capitalism, Corporate State, Corrections Corporation of America, Financial Elite, Gross Inequality, Homeland Security, Inverted Totalitarianism, Management and Training Corp., Police State, Poverty, Prison Industrial Complex, Privatization, Rent-Seeking, Security and Surveillance State, Social Unrest, The Elite 1%, The GEO Group

Since we were on the subject of rent-seeking in our last two posts, I happened to be in Phoenix over the weekend and was reminded of this insidious subject when I saw the following headline at the local newsstand:

This story was covered more in-depth at the Huffington Post. This post is not an endorsement of illegal immigration, but an expose’ of how the relentless and amoral function of profit-seeking in capitalism has taken over our correctional institutions through privatization, becoming another wasteful and corrupt form of rent-seeking. For-profit prisons are one of the more grotesque formations in the annals of capitalism.

According to the aforementioned articles, the for-profit prison industry has grown from just 10% of beds to the present proportion of one half. And this growth has come off the backs of taxpayers who are footing the bill for the expansion of federal facilities to house the roughly 400,000 illegal immigrants jailed each year. The cost to taxpayers will be nearly 2 billion this year. The question is how has this growth occurred in an environment of falling illegal immigration:

Much of the drop in illegal immigrants is due to the persistently weak U.S. economy, which has shrunk construction and service-sector jobs attractive to Mexican workers following the housing bust. But increased deportations, heightened U.S. patrols and violence along the border also have played a role, as well as demographic changes, such as Mexico’s declining birth rate.

If you read between the lines, the answer is in the amount of lobbying that the for-profit industry has carried out in order to milk the system and secure governments contracts:

The industry’s giants – Corrections Corporation of America, The GEO Group, and Management and Training Corp. – have spent at least $45 million combined on campaign donations and lobbyists at the state and federal level in the last decade, the AP found…

…it wasn’t until 2005 – as the corrections companies’ lobbying efforts reached their zenith – that ICE got a major boost. Between 2005 and 2007, the agency’s budget jumped from $3.5 billion to $4.7 billion, adding more than $5 million for custody operations.

Dora Schriro, who in 2009 reviewed the nation’s detention system at the request of Homeland Security Secretary Janet Napolitano, said nearly every aspect had been outsourced…

…An AP review of Federal Election Commission data found the prison companies and their employees gave to key congressional leaders who control how much money goes to run the nation’s detention centers and who influence how many contracts go to the private sector…

Besides the fact that it’s your tax dollars being stolen, how does this affect you? You’re not an illegal immigrant, you say. The tentacles of the prison industrial complex have a way of entangling more of the ever-growing ranks of the poor, an increasing number of which are the former members of the crumbling middle class. If you fall off the capitalist treadmill of debt peonage and run afoul of the law, the 1%’ers have a bed in one of their for-profit prisons waiting for you…

Harvesting the Slaves Down on the Plantation

and

The Exile Nation Project | Watch Free Documentary Online

Poverty and the Rent-Seeking of the Ruthless Transnational Global Elite

31 Tuesday Jul 2012

Posted by xraymike79 in Capitalism, Corporate State, Inequality

≈ 8 Comments

Tags

Barbara Ehrenreich, Capitalism, Corporate State, Corporatocracy, Dennis Kucinich, Economic Hardship Reporting Project, Financial Elite, Gross Inequality, Inverted Totalitarianism, Joseph E. Stiglitz, Oligarchy, Poverty, Rent-Seeking, Rocky Anderson, Social Unrest, The Elite 1%

Since most of us will eventually be relegated to the ranks of the poor or ‘working poor’, I thought it fitting to feature an expert on poverty, Barbara Ehrenreich, author of Nickel and Dimed. She is now heading the Economic Hardship Reporting Project whose goal is to “force this country’s crisis of poverty and economic insecurity to the center of the national conversation.” I have added their blog to my list of RSS feeds. For anyone who thinks that Mrs. Ehrenreich is unaware of the larger apocalyptic picture unfolding in the world, please listen to what she says about the demise of industrial civilization. And since our last post by Darbikrash centered around the rent-seeking financialization of the economy, in particular its effects on small businesses and individual liberties, it behooves us to look at how corporations and government entities prey on the poor and use them as a vast resource pool from which to extract dollars.

In what ways do the poor get used as a source for rent-seeking financialization? Here are a few:

…as Business Week helpfully pointed out in 2007, the poor in aggregate provide a juicy target for anyone depraved enough to make a business of stealing from them.

The trick is to rob them in ways that are systematic, impersonal, and almost impossible to trace to individual perpetrators. Employers, for example, can simply program their computers to shave a few dollars off each paycheck, or they can require workers to show up 30 minutes or more before the time clock starts ticking.

Lenders, including major credit companies as well as payday lenders, have taken over the traditional role of the street-corner loan shark, charging the poor insanely high rates of interest. When supplemented with late fees (themselves subject to interest), the resulting effective interest rate can be as high as 600% a year, which is perfectly legal in many states.

It’s not just the private sector that’s preying on the poor. Local governments are discovering that they can partially make up for declining tax revenues through fines, fees, and other costs imposed on indigent defendants, often for crimes no more dastardly than driving with a suspended license. And if that seems like an inefficient way to make money, given the high cost of locking people up, a growing number of jurisdictions have taken to charging defendants for their court costs and even the price of occupying a jail cell….

You might think that policymakers would take a keen interest in the amounts that are stolen, coerced, or extorted from the poor, but there are no official efforts to track such figures. Instead, we have to turn to independent investigators, like Kim Bobo, author of Wage Theft in America, who estimates that wage theft nets employers at least $100 billion a year and possibly twice that. As for the profits extracted by the lending industry, Gary Rivlin, who wrote Broke USA: From Pawnshops to Poverty, Inc. — How the Working Poor Became Big Business, says the poor pay an effective surcharge of about $30 billion a year for the financial products they consume and more than twice that if you include subprime credit cards, subprime auto loans, and subprime mortgages.

These are not, of course, trivial amounts. They are on the same order of magnitude as major public programs for the poor….

From for-profit prisons subsidized by taxes to government-mandated premiums for the private health insurance industry, I bet if the amount of rent-seeking as a proportion of the GDP in America was able to be quantified, we’d find that this country and its captive denizens are treated as just one big plantation from which to harvest greenbacks. According to economist Joseph E. Stiglitz, an inordinate proportion of those at the top of the free market heap have made rent-seeking the primary method by which they have accumulated their riches:

…The magnitude of “rent seeking” in our economy, while hard to quantify, is clearly enormous. Individuals and corporations that excel at rent seeking are handsomely rewarded. The financial industry, which now largely functions as a market in speculation rather than a tool for promoting true economic productivity, is the rent-seeking sector par excellence. Rent seeking goes beyond speculation. The financial sector also gets rents out of its domination of the means of payment—the exorbitant credit- and debit-card fees and also the less well-known fees charged to merchants and passed on, eventually, to consumers. The money it siphons from poor and middle-class Americans through predatory lending practices can be thought of as rents. In recent years, the financial sector has accounted for some 40 percent of all corporate profits. This does not mean that its social contribution sneaks into the plus column, or comes even close. The crisis showed how it could wreak havoc on the economy. In a rent-seeking economy such as ours has become, private returns and social returns are badly out of whack.

In their simplest form, rents are nothing more than re-distributions from one part of society to the rent seekers. Much of the inequality in our economy has been the result of rent seeking, because, to a significant degree, rent seeking re-distributes money from those at the bottom to those at the top.

But there is a broader economic consequence: the fight to acquire rents is at best a zero-sum activity. Rent seeking makes nothing grow. Efforts are directed toward getting a larger share of the pie rather than increasing the size of the pie. But it’s worse than that: rent seeking distorts resource allocations and makes the economy weaker. It is a centripetal force: the rewards of rent seeking become so outsize that more and more energy is directed toward it, at the expense of everything else. Countries rich in natural resources are infamous for rent-seeking activities. It’s far easier to get rich in these places by getting access to resources at favorable terms than by producing goods or services that benefit people and increase productivity. That’s why these economies have done so badly, in spite of their seeming wealth. It’s easy to scoff and say: We’re not Nigeria, we’re not Congo. But the rent-seeking dynamic is the same….

Below is a good discussion from a couple days ago of the expanding poverty problem in America featuring Barbara Ehrenreich. Don’t mind the free market lackey from the ultra-conservative think tank American Enterprise Institute. He thinks that the access to information the internet created has made people less poverty-stricken than in the past. For those who can afford a computer and internet subscription, the information age has only made them more aware of how fucked they are in a world of depleting resources run by a ruthless transnational oligarchic elite.

What we have in America is a twisted form of socialism for the elite wherein the few are supported by the collective wealth extraction from the many, as precisely described by Dennis Kucinich:

The rancorous debate over the debt belies a fundamental truth of our economy — that it is run for the few at the expense of the many, that our entire government has been turned into a machine which takes the wealth of a mass of Americans and accelerates it into the hands of the few. Let me give you some examples…

Invitations sent to Potential Contributors

29 Sunday Jul 2012

Posted by xraymike79 in Capitalism, Corporate State, Empire, Inequality, Military Industrial Complex, Peak Oil

≈ 4 Comments

Tags

Capitalism, Collapse of Industrial Civilization, Corporate State, Corporatocracy, Economic Collapse, Economic Growth, Financial Elite, Gross Inequality, Gun Culture, Inverted Totalitarianism, James Holmes, John Stewart, Military Industrial Complex, Peak Oil, Poverty, Social Unrest, The Elite 1%, unwashed public

Dear potential contributors (DK, Tom Tom, Kramerfaust, Sunson),

I am going to send you an invitation tonight so that you can contribute. You’ll have to sign up with wordpress in order to submit your work to me. It looks like Kramerfaust already has a wordpress account set up. Per the WordPress staff:

Your new user will now be able to access your blog by visiting the My Blogs section of their dashboard when they log in to WordPress.com.

You won’t have to blog at the site you initially create; it’s just a required formality. Or you can simply email me at Collapsitarians@gmail.com. I’m looking forward to reading your posts. More voices means more worldly knowledge to glean from and different perspectives to appreciate.

Since I started this site, the stats tell me that the top four google searches which have brought people here are the following:

1.) collapse of industrial civilization

2.) the price of offshore revisited

3.) james holmes sociopath

4.) collapse peak oil

The first one is an obvious outcome. I was surprised this domain had not been previously claimed since it seems to be such a hackneyed phrase. As Greer has noted, in the twilight of past civilizations, the elite are increasingly seen as corrupt and stories of societal collapse become popular in the mainstream culture. The second one relates to my post about the trillions being hoarded in offshore tax havens by the 0.001%. Backed by the power of the State, the global elite live in a cocoon of cossetted comfort, indifferent to the hand-to-mouth existence of the majority. They’ve got the iron fist of the Military Industrial Complex and Police State to protect their wealth from the rest of humanity who will be falling off the net energy cliff into poverty and desperation.

The third google search phrase is apparent to all unless you have been living under a rock since July 20th. We have these mass shootings periodically here in the Land of the Second Amendment just as a reminder that guns don’t kill people. Guns are completely innocent in these mass bloodlettings and should not be denied their freedom of getting into the hands of every man, woman, and child in the country. The response by the public is simply to buy even more guns. Why refute such logic in a world that thinks more debt is the answer. More debt, more growth, more firepower, more people, more wars, more cars, more profit, more, more, and more…..

And the last google search is not a surprise either. Despite all the propaganda of another oil surfeit, educated peak-oilers have not been swayed.

Terrorism: The Existential Threat Used for Total Control Here and Abroad

23 Monday Jul 2012

Posted by xraymike79 in Capitalism, Corporate State, Empire, Inequality, Military Industrial Complex, Neo-Colonialism, Peak Oil

≈ 2 Comments

Tags

Capitalism, Corporate State, Corporatocracy, Criminalizing Dissent, Empire, Financial Elite, Gross Inequality, Homeland Security, Inverted Totalitarianism, Military Industrial Complex, Neoliberal Capitalism, Poverty, Resource Wars, Security and Surveillance State, Social Unrest, The Elite 1%, War on Terror, War on Whistleblowers, Zbigniew Brzezinski

Connecting the ‘War on Terror’ with the control of resources abroad and the crushing of dissent both here and overseas:

In order to overtake and dominate, sometimes you have to draw your opponent in close to you. Knowing that the oil and gas reserves of the Middle East make it an area of vital geopolitical and national security importance, an empire would use all available opportunities to insert itself there, even if it meant invasion under some false pretense. With the trumped-up claims of terrorist ties to Iraq and WMD, 9-11 gave the empire the pretense to invade. Today we can see the results here and here and here.

Zbigniew Brzezinski, political scientist, geostrategist, and statesman who worked for the NSA, laid out this general strategy in his book ‘The Grand Chessboard: American Primacy And It’s Geostrategic Imperatives‘.

A few quotes:

“Moreover, as America becomes an increasingly multi-cultural society, it may find it more difficult to fashion a consensus on foreign policy issues, except in the circumstance of a truly massive and widely perceived direct external threat.” (p. 211)

“Never before has a populist democracy attained international supremacy. But the pursuit of power is not a goal that commands popular passion, except in conditions of a sudden threat or challenge to the public’s sense of domestic well-being. The economic self-denial (that is, defense spending) and the human sacrifice (casualties, even among professional soldiers) required in the effort are uncongenial to democratic instincts. Democracy is inimical to imperial mobilization.” (p.35)

“To put it in a terminology that harkens back to the more brutal age of ancient empires, the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected(!), and to keep the barbarians from coming together.” (p.40)

Now we get to today’s video from Journeyman pictures which gives further evidence from a whistleblower that all the stops were pulled in order to make this ‘War on Terror’ fly. No more Geneva Convention, no more questioning of the efficacy or, for that matter, morality of the brutal torture done by countries we once condemned as barbaric:

And the War on Terror is being used to suppress dissent not just in the Middle East, but also here in the US and all other ‘developed countries’ where militarized local police departments have been given the latest armory and weapons to be unleashed on a growing population falling deeper and deeper into joblessness and destitution, the levels of which have not been seen in half a century.

The War on Terror was the perfect existential threat needed to prop up neoliberal capitalism and its resultant world of an opulently rich class ruling over the teeming masses of serfs. In a civilization dominated globally by such an economic system which is designed to funnel the shrinking wealth (i.e. energy) of society into the hands of a tiny elite, there can be no other future to look forward to for those at the bottom but despair and poverty:

At Least $21 Trillion Hidden in Tax Havens While the 99% are Forced to Foot the Bill

22 Sunday Jul 2012

Posted by xraymike79 in Capitalism, Corporate State, Wall Street Fraud

≈ 2 Comments

Tags

Accumulation by Dispossession, Bain Capital, Capitalism, Cayman Islands, Class War, Corporate State, Corporatocracy, Credit Suisse, Economic Collapse, Financial Elite, Gross Inequality, HSBC, Inverted Totalitarianism, Money Laundering, Neoliberal Capitalism, Obama, Offshore Tax Havens, Romney, Switzerland, The Elite 1%, The Price of Offshore Revisited, The Tax Justice Network, UBS, Wall Street Fraud, War for Profit, White Collar Crime, Wolf Blitzer

Wealth doesn’t trickle down – it just floods offshore.

Now the following story should lay to rest the question of who is really waging this class war and laying waste to the rest of humanity. While the Über Rich hide their wealth in tax havens to the tune of at least $21 trillion, the Working Class lose their jobs due to the criminal acts of white-collar crooks, sacrifice their children in foreign wars, cope with cutbacks on social services and shoulder the burden of increased taxes to pay for the roads, bridges, and infrastructure required for society to function, resort to food stamps in an attempt to feed their families, and in some cases commit suicide to escape the hell they have been thrown into by the protected thieving class of the upper 1%.

And a recent example that shows the aloof, above-the-law mentality of these elitist pricks is illustrated in the following video:

This is reality: The elite feel they are above paying the taxes needed to run a functioning society while the rest of humanity is expected and forced to pay those government taxes as well as corporate bailouts. It’s called accumulation by dispossession.

Super–rich stash $21 tn in offshore havens

Wealthy tax evaders, aided by private banks have exploited loopholes in tax legislation and stashed over $21 tn in offshore funds, says a report. The capital drained from some developing countries since 1970 would be enough to pay off national debts.

The findings show the gap between the haves and the have-nots is much larger than previously thought.

The document, entitled The Price of Offshore Revisited, was commissioned by The Tax Justice Network campaign group and leaked to the Guardian. The report provides the most detailed valuation of the offshore economy to date.

“The problem here is that the assets of these countries are held by a small number of wealthy individuals while the debts are shouldered by the ordinary people of these countries through their governments,” wrote James Henry, expert on tax havens and former chief economist at consultancy McKinsey in his report.

The document cites the world’s leading private banks as cherry-picking from the ranks of the uber-rich and siphoning their fortunes into tax-free havens such as Switzerland and the Cayman Islands.

The wealth of the super-rich is “protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy.”

Henry writes that a large part of the trillion dollar hoard belongs to around 92,000 individuals, an elite class of super-rich who make up 0.001 percent of the global population.

“These estimates reveal a staggering failure: inequality is much, much worse than official statistics show, but politicians are still relying on trickle-down to transfer wealth to poorer people,” said John Christensen of the Tax Justice Network.

The report records the flow of capital from countries into offshores over the past few decades. Saudi Arabia saw almost $300 billion drained from their economy since the 1970s, while Russia saw almost $800 billion leave its economy in hidden assets since the fall of the Soviet Union. Nigeria issued a loss of $300 billion since the mid-1970s.
Henry points the finger at the world’s top ten private banks, among them UBS and Credit Suisse, for aiding wealthy clients to dodge taxes.

According to Henry’s figures, the top financial leaders processed more than $6 trillion in funds in 2010, more than double the previous year.

Banking system – rotten to the core

Last week the US Senate released a report damning the actions of the UK bank HSBC. The report highlighted evidence of the bank’s law security policies leading to money laundering cases.

It referenced $7 billion in cash that had crossed the Mexican border into the US and been deposited in HSBC from 2007 to 2008. The report suggests that the billions of dollars could have come from drug sales in Mexico.

The probe also shed light on a number of other instances when the bank bypassed US safeguards, potentially bankrolling terrorists and drug lords in the process.

The bank had previously had to pay out $1bn to US authorities for money laundering offenses committed between 2004 and 2010.

The G20 has repeatedly made calls to end tax-free havens since the beginning of the financial crisis in 2008, but these plans have not yet come to fruition.

The Joke’s on Us: Guns in a Sociopathic Society

21 Saturday Jul 2012

Posted by xraymike79 in Capitalism, Consumerism, Corporate State, Environmental Degradation, Inequality, Military Industrial Complex, Wall Street Fraud

≈ 9 Comments

Tags

America's Gun Culture, Arms Dealers, Aurora Colorado, Collapse of Industrial Civilization, Corporate State, Corporatocracy, Economic Collapse, Financial Elite, Gross Inequality, Inverted Totalitarianism, James Holmes, Mass Shooting, Neoliberal Capitalism, NRA, Obama, Police State, Poverty, Robert Whitaker, Security and Surveillance State, Social Unrest, The Elite 1%, Wall Street Fraud, War for Profit, War on Terror

He looked like an assassin ready to go to war,” said Jordan Crofter, a moviegoer who was unhurt in the attack early Friday, about a half-hour after the special midnight opening of “The Dark Knight Rises.

Just a half hour drive from Columbine is the city of Aurora Colorado in which the latest ritual blood bath has been carried out in a hail of bullets. 71 hit and 12 dead.

Clad in a gas mask, ballistic helmet, and body armor from the neck down to the legs, the gunman burst into a theater after tossing in a couple of gas canisters. Was this a terrorist act from some fundamentalist Middle East group? No, it came from 24-year-old American James Holmes, described as “shy”, “high-achieving” and from a “good family.” He was in fact a college graduate with a bachelor’s degree in neuroscience. Tom Mai, a retired electrical engineer, said “the mother told him Holmes couldn’t find a job after earning a master’s degree and returned to school.” Holmes even left his apartment booby-trapped, a sort of double tap assault for those hunting him.

What can be said of this most recent disturbed outcry from modern civilization’s youth? I see it as a reflection of the perverse and twisted culture which this young person was faced with, an atomized society which commodifies everything in its site and turns all it can into a financial transaction of some sort. What is worth preserving of a society which destroys the future of its offspring with mountains of social debt in the form of exorbitant college loans, a degraded and polluted environment, no option for meaningful work, a two-tier class system of haves and have-nots, a rising Security and Surveillance State, and a world at war for the last of the earth’s resources? Of course this is all normal for a country that glorifies sociopathic behavior:

…Sociopathic behavior becomes normalized and even glorified in business culture, and the businessmen who are less sociopathic get eaten alive by the more sociopathic ones.

The entirety of business sociopathy is glorified by the nation’s culture, in art, media, etc. as tens of millions of Americans long to be the next Bill Gates, who is nothing more than a White Crips/Bloods gang member with glasses and a high IQ.

Less sociopathic businessmen who try to act decent are destroyed and then, for their decency, are attacked in common culture as losers, failures and even scum. Women avoid them and their families look at the ground when someone brings up their name. At the individual level, people who try to play fair and be nice are told that they are displaying loser attitudes and ordered to harden up and act more sociopathic.

Capitalism is really the normalization, rationalization, glorification and even deification of sociopathy across society.

My only surprise is that we don’t see more of these meltdowns taking place in this bankrupt and systemically corrupt system of ours. If you read medical journalist Robert Whitaker, America’s rise in mental illness has gone up in lockstep with “our society’s increased use of psychiatric medications.”

Another factor for America’s escalating random violence is the entrenched gun culture. America was awarded the dubious honor of being the ‘most armed country in the world’ by Reuters back in 2007. And lest we forget, America is the largest arms dealer in the world.

Surely the lack of effective gun laws that would prevent such massacres also is worth mentioning, thanks to the legendary lobbying power of the NRA whose motto was best exemplified by their now deceased spokesman Charlton Heston who said you can pry the gun “from my cold, dead hands.” America just loves its guns:

If there was a fast and sudden collapse of the economy and industrial civilization, America might be one of the last places you’d want to find yourself due to the above reasons I have described.