The Corporate State Wins Again

Posted on Apr 25, 2011

By Chris Hedges

When did our democracy die? When did it irrevocably transform itself into a lifeless farce and absurd political theater? When did the press, labor, universities and the Democratic Party—which once made piecemeal and incremental reform possible—wither and atrophy? When did reform through electoral politics become a form of magical thinking? When did the dead hand of the corporate state become unassailable?

The body politic was mortally wounded during the long, slow strangulation of ideas and priorities during the Red Scare and the Cold War. Its bastard child, the war on terror, inherited the iconography and language of permanent war and fear. The battle against internal and external enemies became the excuse to funnel trillions in taxpayer funds and government resources to the war industry, curtail civil liberties and abandon social welfare. Skeptics, critics and dissenters were ridiculed and ignored. The FBI, Homeland Security and the CIA enforced ideological conformity. Debate over the expansion of empire became taboo. Secrecy, the anointing of specialized elites to run our affairs and the steady intrusion of the state into the private lives of citizens conditioned us to totalitarian practices. Sheldon Wolin points out in “Democracy Incorporated” that this configuration of corporate power, which he calls “inverted totalitarianism,” is not like “Mein Kampf” or “The Communist Manifesto,” the result of a premeditated plot. It grew, Wolin writes, from “a set of effects produced by actions or practices undertaken in ignorance of their lasting consequences.” 

Corporate capitalism—because it was trumpeted throughout the Cold War as a bulwark against communism—expanded with fewer and fewer government regulations and legal impediments. Capitalism was seen as an unalloyed good. It was not required to be socially responsible. Any impediment to its growth, whether in the form of trust-busting, union activity or regulation, was condemned as a step toward socialism and capitulation. Every corporation is a despotic fiefdom, a mini-dictatorship. And by the end Wal-Mart, Exxon Mobil and Goldman Sachs had grafted their totalitarian structures onto the state.

The Cold War also bequeathed to us the species of the neoliberal. The neoliberal enthusiastically embraces “national security” as the highest good.  The neoliberal—composed of the gullible and cynical careerists—parrots back the mantra of endless war and corporate capitalism as an inevitable form of human progress. Globalization, the neoliberal assures us, is the route to a worldwide utopia. Empire and war are vehicles for lofty human values. Greg Mortenson, the disgraced author of “Three Cups of Tea,” tapped into this formula. The deaths of hundreds of thousands of innocents in Iraq or Afghanistan are ignored or dismissed as the cost of progress. We are bringing democracy to Iraq, liberating and educating the women of Afghanistan, defying the evil clerics in Iran, ridding the world of terrorists and protecting Israel. Those who oppose us do not have legitimate grievances. They need to be educated. It is a fantasy. But to name our own evil is to be banished. 

We continue to talk about personalities—Ronald Reagan, Bill Clinton, George W. Bush and Barack Obama—although the heads of state or elected officials in Congress have become largely irrelevant. Lobbyists write the bills. Lobbyists get them passed. Lobbyists make sure you get the money to be elected. And lobbyists employ you when you get out of office. Those who hold actual power are the tiny elite who manage the corporations. Jacob S. Hacker and Paul Pierson, in their book “Winner-Take-All Politics,” point out that the share of national income of the top 0.1 percent of Americans since 1974 has grown from 2.7 to 12.3 percent. One in six American workers may be without a job. Some 40 million Americans may live in poverty, with tens of millions more living in a category called “near poverty.” Six million people may be forced from their homes because of foreclosures and bank repossessions. But while the masses suffer, Goldman Sachs, one of the financial firms most responsible for the evaporation of $17 trillion in wages, savings and wealth of small investors and shareholders, is giddily handing out $17.5 billion in compensation to its managers, including $12.6 million to its CEO, Lloyd Blankfein.

The massive redistribution of wealth, as Hacker and Pierson write, happened because lawmakers and public officials were, in essence, hired to permit it to happen. It was not a conspiracy. The process was transparent. It did not require the formation of a new political party or movement. It was the result of inertia by our political and intellectual class, which in the face of expanding corporate power found it personally profitable to facilitate it or look the other way. The armies of lobbyists, who write the legislation, bankroll political campaigns and disseminate propaganda, have been able to short-circuit the electorate. Hacker and Pierson pinpoint the administration of Jimmy Carter as the start of our descent, but I think it began long before with Woodrow Wilson, the ideology of permanent war and the capacity by public relations to manufacture consent. Empires die over such long stretches of time that the exact moment when terminal decline becomes irreversible is probably impossible to document. That we are at the end, however, is beyond dispute. 

The rhetoric of the Democratic Party and the neoliberals sustains the illusion of participatory democracy. The Democrats and their liberal apologists offer minor palliatives and a feel-your-pain language to mask the cruelty and goals of the corporate state. The reconfiguration of American society into a form of neofeudalism will be cemented into place whether it is delivered by Democrats, who are pushing us there at 60 miles an hour, or Republicans, who are barreling toward it at 100 miles an hour. Wolin writes, “By fostering an illusion among the powerless classes” that it can make their interests a priority, the Democratic Party “pacifies and thereby defines the style of an opposition party in an inverted totalitarian system.” The Democrats are always able to offer up a least-worst alternative while, in fact, doing little or nothing to thwart the march toward corporate collectivism. 

The systems of information, owned or dominated by corporations, keep the public entranced with celebrity meltdowns, gossip, trivia and entertainment. There are no national news or intellectual forums for genuine political discussion and debate. The talking heads on Fox or MSNBC or CNN spin and riff on the same inane statements by Sarah Palin or Donald Trump. They give us lavish updates on the foibles of a Mel Gibson or Charlie Sheen. And they provide venues for the powerful to speak directly to the masses. It is burlesque. 

It is not that the public does not want a good health care system, programs that provide employment, quality public education or an end to Wall Street’s looting of the U.S. Treasury. Most polls suggest Americans do. But it has become impossible for most citizens to find out what is happening in the centers of power. Television news celebrities dutifully present two opposing sides to every issue, although each side is usually lying. The viewer can believe whatever he or she wants to believe. Nothing is actually elucidated or explained. The sound bites by Republicans or Democrats are accepted at face value. And once the television lights are turned off, the politicians go back to the business of serving business.

We live in a fragmented society. We are ignorant of what is being done to us. We are diverted by the absurd and political theater. We are afraid of terrorism, of losing our job and of carrying out acts of dissent. We are politically demobilized and paralyzed. We do not question the state religion of patriotic virtue, the war on terror or the military and security state. We are herded like sheep through airports by Homeland Security and, once we get through the metal detectors and body scanners, spontaneously applaud our men and women in uniform. As we become more insecure and afraid, we become more anxious. We are driven by fiercer and fiercer competition. We yearn for stability and protection. This is the genius of all systems of totalitarianism. The citizen’s highest hope finally becomes to be secure and left alone. 

Human history, rather than a chronicle of freedom and democracy, is characterized by ruthless domination. Our elites have done what all elites do. They have found sophisticated mechanisms to thwart popular aspirations, disenfranchise the working and increasingly the middle class, keep us passive and make us serve their interests. The brief democratic opening in our society in the early 20th century, made possible by radical movements, unions and a vigorous press, has again been shut tight. We were mesmerized by political charades, cheap consumerism and virtual hallucinations as we were ruthlessly stripped of power. 

The game is over. We lost. The corporate state will continue its inexorable advance until two-thirds of the nation is locked into a desperate, permanent underclass. Most Americans will struggle to make a living while the Blankfeins and our political elites wallow in the decadence and greed of the Forbidden City and Versailles. These elites do not have a vision. They know only one word—more.  They will continue to exploit the nation, the global economy and the ecosystem. And they will use their money to hide in gated compounds when it all implodes. Do not expect them to take care of us when it starts to unravel. We will have to take care of ourselves. We will have to create small, monastic communities where we can sustain and feed ourselves. It will be up to us to keep alive the intellectual, moral and culture values the corporate state has attempted to snuff out. It is either that or become drones and serfs in a global, corporate dystopia. It is not much of a choice. But at least we still have one.

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The New Corporate World Order

Posted on Apr 19, 2011

By Robert Scheer

The debate over Republicans’ insistence on continued tax breaks for the superrich and the corporations they run should come to a screeching halt with the report in Tuesday’s Wall Street Journal headlined “Big U.S. Firms Shift Hiring Abroad.” Those tax breaks over the past decade, leaving some corporations such as General Electric to pay no taxes at all, were supposed to lead to job creation, but just the opposite has occurred. As the WSJ put it, the multinational companies “cut their work forces in the U.S. by 2.9 million during the 2000s while increasing employment overseas by 2.4 million, new data from the U.S. Commerce Department show.”

General Electric, which was bailed out by taxpayers and which stored so much of its profit abroad that it paid no taxes for the past two years, was forced to tighten up, but while cutting its foreign workforce by 1,000 it cut a far more severe 28,000 in the United States. Jeffrey Immelt, the CEO of GE, recently appointed by President Barack Obama as his chief outside economic adviser, admits that this does not involve poorly paid work that Americans don’t want, but instead prime jobs: “We’ve globalized around markets, not cheap labor. The era of globalization around cheap labor is over. Today we go to China, we go to India, because that’s where the customers are.”

There is a bitter irony in that statement given that consumer purchasing power is down in the U.S. thanks to the devastating collapse of a housing bubble GE Capital fed with suspect mortgage financing that provided the company with well over half of its profits before the crash. The loss of well-paying jobs at multinationals like GE to other nations—54 percent of the GE workforce is foreign—exacerbates the plight of U.S. consumers while making the foreign customers even more attractive.

Of course it will be argued that multinational corporations have the right to arrange their business as they see fit in order to maximize profit. But if that is the case, do beleaguered American taxpayers have to foot the bill? When those corporations run into trouble overseas because of financial hustles or hostile locals and need the diplomatic and military might of the U.S. government to protect their interests abroad, it is again the U.S. taxpayer who must pay to maintain this new world order. It is an order, as we see with three current wars and a military budget that rivals Cold War highs, that is contributing mightily to the U.S. government debt. More than half of all discretionary spending, the dollars that the Republicans in Congress now want to take out of needed domestic programs, is accounted for by defense spending. That defense spending to support a massive network of military bases and deployed weapons and troops is key to establishing an order in which the interests of American corporations are attended to. If the companies don’t feel that way, let them operate under the flag of Liberia or the Cayman Islands.

No less important than U.S. military muscle is the power of the American government to construct and enforce a worldwide trade and finance structure to the advantage of U.S.-based multinational corporations. That is why the companies spend so much money lobbying Congress on matters ranging from regional trade agreements to international banking regulations. It is precisely the impact of trade agreements like NAFTA that has facilitated the erosion of well-paying jobs. And it was the deregulation of international banking standards, led by the U.S. Treasury Department under the past five presidents, that created the conditions for the recent disastrous housing and banking meltdown.

Big government, the devil that Republicans love to inveigh against, is big precisely because it is so active in so many costly ways in serving the interests of our biggest corporations. Corporate lobbyists attest with their every breath that big government and big business are bedmates in a bountiful venture that impoverishes the rest of us. It is time to admit that we are, in practice if not surface appearance, close to the Chinese communist model of state-sponsored capitalism that sacrifices the interests of ordinary workers, be they in the public or private sector, for the exorbitant profits of the superrich. It is the corporations that need big government to protect their interests, and one would hope they would be willing to pay for the services that their government so faithfully renders to make them obscenely wealthy as it studiously ignores the well-being of the rest of us.

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Throw Out the Money Changers

Posted on Apr 18, 2011

By Chris Hedges

These are remarks Chris Hedges made in Union Square in New York City last Friday during a protest outside a branch office of the Bank of America.

We stand today before the gates of one of our temples of finance. It is a temple where greed and profit are the highest good, where self-worth is determined by the ability to amass wealth and power at the expense of others, where laws are manipulated, rewritten and broken, where the endless treadmill of consumption defines human progress, where fraud and crimes are the tools of business.

The two most destructive forces of human nature—greed and envy—drive the financiers, the bankers, the corporate mandarins and the leaders of our two major political parties, all of whom profit from this system. They place themselves at the center of creation. They disdain or ignore the cries of those below them. They take from us our rights, our dignity and thwart our capacity for resistance. They seek to make us prisoners in our own land. They view human beings and the natural world as mere commodities to exploit until exhaustion or collapse. Human suffering, wars, climate change, poverty, it is all the price of business. Nothing is sacred. The Lord of Profit is the Lord of Death.

The pharisees of high finance who can see us this morning from their cubicles and corner officers mock virtue. Life for them is solely about self-gain. The suffering of the poor is not their concern. The 6 million families thrown out of their homes are not their concern. The tens of millions of pensioners whose retirement savings were wiped out because of the fraud and dishonesty of Wall Street are not their concern. The failure to halt carbon emissions is not their concern. Justice is not their concern. Truth is not their concern. A hungry child is not their concern.

Fyodor Dostoyevsky in “Crime and Punishment” understood the radical evil behind the human yearning not to be ordinary but to be extraordinary, the desire that allows men and women to serve systems of self-glorification and naked greed. Raskolnikov in the novel believes—like those in this temple—that humankind can be divided into two groups. The first is composed of ordinary people. These ordinary people are meek and submissive. They do little more than reproduce other human beings in their own likeness, grow old and die. And Raskolnikov is dismissive of these lesser forms of human life.

The second group, he believes, is extraordinary. These are, according to Raskolnikov, the Napoleons of the world, those who flout law and custom, those who shred conventions and traditions to create a finer, more glorious future. Raskolnikov argues that, although we live in the world, we can free ourselves from the consequences of living with others, consequences that will not always be in our favor. The Raskolnikovs of the world place unbridled and total faith in the human intellect. They disdain the attributes of compassion, empathy, beauty, justice and truth. And this demented vision of human existence leads Raskolnikov to murder a pawnbroker and steal her money.

The priests in these corporate temples, in the name of profit, kill with even more ruthlessness, finesse and cunning than Raskolnikov. Corporations let 50,000 people die last year because they could not pay them for proper medical care. They have killed hundreds of thousands of Iraqis and Afghanis, Palestinians and Pakistanis, and gleefully watched as the stock price of weapons contractors quadrupled. They have turned cancer into an epidemic in the coal fields of West Virginia where families breathe polluted air, drink poisoned water and watch the Appalachian Mountains blasted into a desolate wasteland while coal companies can make billions. And after looting the U.S. treasury these corporations demand, in the name of austerity, that we abolish food programs for children, heating assistance and medical care for our elderly, and good public education. They demand that we tolerate a permanent underclass that will leave one in six workers without jobs, that condemns tens of millions of Americans to poverty and tosses our mentally ill onto heating grates. Those without power, those whom these corporations deem to be ordinary, are cast aside like human refuse. It is what the god of the market demands.

When Dante enters the “city of woes” in the Inferno he hears the cries of “those whose lives earned neither honor nor bad fame,” those rejected by Heaven and Hell, those who dedicated their lives solely to the pursuit of happiness. These are all the “good” people, the ones who never made a fuss, who filled their lives with vain and empty pursuits, harmless perhaps, to amuse themselves, who never took a stand for anything, never risked anything, who went along. They never looked hard at their lives, never felt the need, never wanted to look.

Those who chase the glittering rainbows of the consumer society, who buy into the perverted ideology of consumer culture, become, as Dante knew, moral cowards. They are indoctrinated by our corporate systems of information and remain passive as our legislative, executive and judicial branches of government—tools of the corporate state—strip us of the capacity to resist. Democrat or Republican. Liberal or conservative. It makes no difference. Barack Obama serves corporate interests as assiduously as did George W. Bush. And to place our faith in any party or established institution as a mechanism for reform is to be entranced by the celluloid shadows on the wall of Plato’s cave.

We must defy the cant of consumer culture and recover the primacy in our lives of mercy and justice. And this requires courage, not just physical courage but the harder moral courage of listening to our conscience. If we are to save our country, and our planet, we must turn from exalting the self, to subsuming of the self for our neighbor. Self-sacrifice defies the sickness of corporate ideology. Self-sacrifice mocks opportunities for advancement, money and power. Self-sacrifice smashes the idols of greed and envy. Self-sacrifice demands that we rise up against the abuse, injury and injustice forced upon us by the mandarins of corporate power. There is a profound truth in the biblical admonition “He who loves his life will lose it.”

Life is not only about us. We can never have justice until our neighbor has justice. And we can never recover our freedom until we are willing to sacrifice our comfort for open rebellion. The president has failed us. The Congress has failed us. The courts have failed us. The press has failed us. The universities have failed us. Our process of electoral democracy has failed us. There are no structures or institutions left that have not been contaminated or destroyed by corporations. And this means it is up to us. Civil disobedience, which will entail hardship and suffering, which will be long and difficult, which at its core means self-sacrifice, is the only mechanism left.

The bankers and hedge fund managers, the corporate and governmental elites, are the modern version of the misguided Israelites who prostrated themselves before the golden calf. The sparkle of wealth glitters before them, spurring them faster and faster on the treadmill towards destruction. And they seek to make us worship at their altar. As long as greed inspires us, greed keeps us complicit and silent. But once we defy the religion of unfettered capitalism, once we demand that a society serve the needs of citizens and the ecosystem that sustains life, rather than the needs of the marketplace, once we learn to speak with a new humility and live with a new simplicity, once we love our neighbor as ourself, we break our chains and make hope visible.

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A Gay Former N.B.A. Player Responds to Kobe Bryant

By JOHN AMAECHI

Chris Goodney/Bloomberg News; Lucy Nicholson/Reuters John Amaechi said Kobe Bryant shouldn’t fight the fine imposed for his use of an antigay slur.

After Los Angeles Lakers guard Kobe Bryant directed an antigay slur at a referee Tuesday night from the bench in a game against the Phoenix Suns, the N.B.A. fined him $100,000. Bryant has apologized, saying his words should not have been taken literally. He said he would appeal the fine.

Kobe Bryant isn’t some great, bigoted monster, as some have implied, but he isn’t the innocent victim of some overblown one-off incident about a word that’s “not even that bad,” either.

This controversy is not a storm in a teacup turned into a vendetta by loony liberals, as many in the sports world seem to think. What our heroes say and do means something — and in an America where sports stars carry more influence and in some cases more credibility than senators, what they say matters more than ever.

When someone with the status of Kobe Bryant, arguably the best basketball player in a generation, hurls that antigay slur at a referee or anyone else — let’s call it the F-word — he is telling boys, men and anyone watching that when you are frustrated, when you are as angry as can be, the best way to demean and denigrate a person, even one in a position of power, is to make it clear that you think he is not a real man, but something less.

I challenge you to freeze-frame Bryant’s face in that moment of conflict with the referee Bennie Adams. Really examine the loathing and utter contempt, and realize this is something with which almost every lesbian, gay, bisexual and transgender person is familiar. That is the sentiment people face in middle and high schools, in places of worship, work and even in their own homes across the United States.

Right now in America young people are being killed and killing themselves simply because of the words and behaviors they are subjected to for being perceived as lesbian or gay, or frankly just different. This is not an indictment of the individuals suffocated by their mistreatment, it is an indication of the power of that word, and others like it, to brutalize and dehumanize. This F-word, which so many people seem to think is no big deal, is the postscript to too many of those lives cut short.

As for the original apology, I am amazed that people still think apologizing in such a way as to make it clear that it was the victims who misunderstood is acceptable. I had hoped that the sorry-if-you-are-oversensitive school of apology would by now have been thoroughly discredited.

Many people balk when L.G.B.T. people, even black ones, suggest that the power and vitriol behind another awful slur — the N-word — is no different from the word used by Kobe. I make no attempt at an analogy between the historical civil rights struggle for blacks in the United States with the current human rights struggle for L.G.B.T. people, but I can say that I am frequently called both, and the indignation, anger and at times resignation that course through my body are no greater or less for either. I know with both words the intent is to let me know that no matter how big, how accomplished, philanthropic or wise I may become, to them I am not even human.

I am tired of people having this debate about the relative impact of pejorative words on their target minority group. If injustice anywhere is a threat to justice everywhere, then the relative power of an antigay gay slur is irrelevant, it is simply a threat to human dignity, and that should appall us all.

I don’t think Kobe Bryant is some vicious homophobe, but I do think he made a mistake and has sounded more like a squirming politician than a national hero since the incident came to light. When you know that people hang on your every word, you should take more responsibility when the wrong words spill out in anger. When you understand that people treat you like a god, you should endeavor to be more benevolent when you exceed expectations and more contrite when you let people down.

I started playing basketball at age 17 in the United Kingdom. I went from the fat child who hid in the corner of the library to starting in the N.B.A. six years later. Despite my efforts, I couldn’t hold a candle to Kobe, but even with my limited prominence, I always knew two things: I was always under scrutiny and what I did and said mattered more because of that.

Kobe, stop fighting the fine. You spoke ill-advised words that shot out like bullets, and if the e-mails I received from straight and gay young people and sports fans in Los Angeles alone are anything to go by, you did serious damage with your outburst.

A young man from a Los Angeles public school e-mailed me. You are his idol. He is playing up, on the varsity team, he has your posters all over his room, and he hopes one day to play in college and then in the N.B.A. with you. He used to fall asleep with images of passing you the ball to sink a game-winning shot. He watched every game you played this season on television, but this week he feels less safe and less positive about himself because he stared adoringly into your face as you said the word that haunts him in school every single day.

Kobe, stop fighting the fine. Use that money and your influence to set a new tone that tells sports fans, boys, men and the society that looks up to you that the word you said in anger is not O.K., not ever. Too many athletes take the trappings of their hard-earned success and leave no tangible legacy apart from “that shot” or “that special game.”

Kobe Bryant is powerful enough to make an important change in the way we look at real equality in sports and in general. Kobe is one of sport’s heroes, one of sport’s gods, and I hope it’s not too much to ask for the occasional good deed worthy of those titles.

John Amaechi, a journeyman center, played for the Cleveland Cavaliers, the Orlando Magic and the Utah Jazz before leaving the N.B.A. in 2003. Four years later, he became the first N.B.A. player to acknowledge that he is gay. He wrote “Man in the Middle,” a book about his difficult journey from an overweight, British bookworm to N.B.A. player while struggling to understand his sexuality in a masculine-driven sports culture. He now works as a psychologist, educator and social entrepreneur in the United States and Europe.

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The False Debate on the Debt

Posted on Apr 12, 2011

By Robert Scheer

In the ever-so-smug company of the rich and powerful it is a given that there is never to be any expression of remorse or other acknowledgement of the pain they have inflicted on the lesser mortals they so cavalierly plunder. It’s convenient for them that the media and the politicians, which they happen to own, rarely connect the dots between the scams that made the rich so rich and the alarming rise in the federal debt that is crushing this nation.

The result of this purchased public myopia is that we are left with an absurd debate over how deeply to cut teachers’ pensions and seniors’ medical benefits while preserving tax breaks for the superrich and their large corporations. At a time when 10 million American families will have lost their homes by year’s end, when $5.6 trillion in home equity has been wiped out, when most Americans face steep unemployment rates and stagnant wages, a Democratic president is likely to compromise with Republican ideologues who insist that further cuts in taxes for the rich is the way to bring back jobs.

Let’s deal right off with that canard. There is currently no shortage of corporate profits or excessive executive compensation to explain away the failure of the private sector to create jobs. On the contrary, as The New York Times reports, “In the fourth quarter, profits at American businesses were up an astounding 29.2 percent, the fastest growth in more than 60 years. Collectively, American corporations logged profits at an annual rate of $1.678 trillion.” And to add insult to injury, the top executives, who seem unable or unwilling to create jobs or adequately reward their workers, have increased their own compensation by a whopping 12 percent over the previous year, setting the median pay at $9.6 million per year for those in control of the leading 200 companies. The Times adds that “C.E.O. pay is also on the rise again at companies like Capital One and Goldman Sachs, which survived the economic storm with the help of all of those taxpayer-financed bailouts.” 

Lost in this faux debate is the reality that our debt now looms so large because the government had to bail out many of those same corporations, quite a few of which, like General Electric and AIG, pay no taxes and have no problem paying truly obscene amounts to their top executives. GE CEO Jeffrey Immelt, whom President Barack Obama named chairman of the Council on Jobs and Competitiveness, is making as much as he did before the recession hit, a recession that his GE Capital division did much to cause with its reckless loans. AIG, saved with a government infusion of $170 billion, has just lavishly rewarded its top executives but has providing no relief for the homeowners ripped off by its phony credit default swaps.

The AIG deal was engineered by then-President of the New York Fed Timothy Geithner, who was rewarded for his efforts to save the bankers by being named Obama’s treasury secretary. Geithner, an energetic member of the team of Robert Rubin and Lawrence Summers that ran Treasury when the Bill Clinton administration cooperated with congressional Republicans in gutting regulation of the financial community, is proud of saving the banks from the wreckage that they and the Clinton policies caused. Last October he proclaimed the TARP banker bailout program “the most effective government program in recent memory.” 

What he is referring to is that in order to escape the federal restrictions on executive compensation, the banks have been eager to pay back the TARP funds. What he and other apologists for the Obama and George W. Bush administrations’ Bankers First program choose to ignore—as Paul Atkins and two other members of the Congressional Oversight Panel for the Troubled Asset Relief Program revealed in a damning Wall Street Journal column titled “TARP Was No Win for the Taxpayers”—is that the banks are not paying back the trillions of dollars in non-TARP governmental assistance that saved them from bankruptcy. ” … It hides the full story of the government’s financial crisis effort, of which TARP is but a minor part,” the Op-Ed column said of the maneuvering. The major part is the $1.1 trillion in toxic-mortgage-based securities that the Fed purchased, relieving the banks of their obligations, and the $380 billion bailout of Fannie Mae and Freddie Mac, organizations that backed those securities, along with “other Fed and FDIC programs [that] added another $2 trillion of taxpayer money at risk to the 19 stress-tested banks alone. …”

What Geithner celebrates is a shell game of his own construction in which far more costly federal programs, with no serious restrictions on banker greed, were used by the banks to “repay” the TARP funds. Nothing was obtained in return from those banks in the way of mortgage cramdowns to keep people in their homes or any restrictions on the interest rates that banks charge on credit cards: Clearly usurious rates of more than 25 percent are now the norm for those struggling to keep their families above water. No wonder consumer confidence is down, the housing market is expected to decline an additional 10 percent over the next year, and the job market is predicted by most of the experts to stagnate for years to come. Continued tax breaks for the 1 percent of the population that controls 40 percent of the nation’s wealth will do nothing to restore the confidence of the other 99 percent of consumers who are suffering so.

This at least Obama seems to understand, but count on him to betray his own better instincts by once again following the advice of his treasury secretary and the Wall Street crowd that contributed so lavishly to his first presidential campaign and whose support he seeks once again.

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Why the United States Is Destroying Its Education System

Posted on Apr 10, 2011

By Chris Hedges

A nation that destroys its systems of education, degrades its public information, guts its public libraries and turns its airwaves into vehicles for cheap, mindless amusement becomes deaf, dumb and blind. It prizes test scores above critical thinking and literacy. It celebrates rote vocational training and the singular, amoral skill of making money. It churns out stunted human products, lacking the capacity and vocabulary to challenge the assumptions and structures of the corporate state. It funnels them into a caste system of drones and systems managers. It transforms a democratic state into a feudal system of corporate masters and serfs.

Teachers, their unions under attack, are becoming as replaceable as minimum-wage employees at Burger King. We spurn real teachers—those with the capacity to inspire children to think, those who help the young discover their gifts and potential—and replace them with instructors who teach to narrow, standardized tests. These instructors obey. They teach children to obey. And that is the point. The No Child Left Behind program, modeled on the “Texas Miracle,” is a fraud. It worked no better than our deregulated financial system. But when you shut out debate these dead ideas are self-perpetuating.

Passing bubble tests celebrates and rewards a peculiar form of analytical intelligence. This kind of intelligence is prized by money managers and corporations. They don’t want employees to ask uncomfortable questions or examine existing structures and assumptions. They want them to serve the system. These tests produce men and women who are just literate and numerate enough to perform basic functions and service jobs. The tests elevate those with the financial means to prepare for them. They reward those who obey the rules, memorize the formulas and pay deference to authority. Rebels, artists, independent thinkers, eccentrics and iconoclasts—those who march to the beat of their own drum—are weeded out.

“Imagine,” said a public school teacher in New York City, who asked that I not use his name, “going to work each day knowing a great deal of what you are doing is fraudulent, knowing in no way are you preparing your students for life in an ever more brutal world, knowing that if you don’t continue along your scripted test prep course and indeed get better at it you will be out of a job. Up until very recently, the principal of a school was something like the conductor of an orchestra: a person who had deep experience and knowledge of the part and place of every member and every instrument. In the past 10 years we’ve had the emergence of both [Mayor] Mike Bloomberg’s Leadership Academy and Eli Broad’s Superintendents Academy, both created exclusively to produce instant principals and superintendents who model themselves after CEOs. How is this kind of thing even legal? How are such ‘academies’ accredited? What quality of leader needs a ‘leadership academy’? What kind of society would allow such people to run their children’s schools? The high-stakes tests may be worthless as pedagogy but they are a brilliant mechanism for undermining the school systems, instilling fear and creating a rationale for corporate takeover. There is something grotesque about the fact the education reform is being led not by educators but by financers and speculators and billionaires.”

Teachers, under assault from every direction, are fleeing the profession. Even before the “reform” blitzkrieg we were losing half of all teachers within five years after they started work—and these were people who spent years in school and many thousands of dollars to become teachers. How does the country expect to retain dignified, trained professionals under the hostility of current conditions? I suspect that the hedge fund managers behind our charter schools system—whose primary concern is certainly not with education—are delighted to replace real teachers with nonunionized, poorly trained instructors. To truly teach is to instill the values and knowledge which promote the common good and protect a society from the folly of historical amnesia. The utilitarian, corporate ideology embraced by the system of standardized tests and leadership academies has no time for the nuances and moral ambiguities inherent in a liberal arts education. Corporatism is about the cult of the self. It is about personal enrichment and profit as the sole aim of human existence. And those who do not conform are pushed aside. 

“It is extremely dispiriting to realize that you are in effect lying to these kids by insinuating that this diet of corporate reading programs and standardized tests are preparing them for anything,” said this teacher, who feared he would suffer reprisals from school administrators if they knew he was speaking out. “It is even more dispiriting to know that your livelihood depends increasingly on maintaining this lie. You have to ask yourself why are hedge fund managers suddenly so interested in the education of the urban poor? The main purpose of the testing craze is not to grade the students but to grade the teacher.”

“I cannot say for certain—not with the certainty of a Bill Gates or a Mike Bloomberg who pontificate with utter certainty over a field in which they know absolutely nothing—but more and more I suspect that a major goal of the reform campaign is to make the work of a teacher so degrading and insulting that the dignified and the truly educated teachers will simply leave while they still retain a modicum of self-respect,” he added. “In less than a decade we been stripped of autonomy and are increasingly micromanaged. Students have been given the power to fire us by failing their tests. Teachers have been likened to pigs at a trough and blamed for the economic collapse of the United States. In New York, principals have been given every incentive, both financial and in terms of control, to replace experienced teachers with 22-year-old untenured rookies. They cost less. They know nothing. They are malleable and they are vulnerable to termination.”

The demonizing of teachers is another public relations feint, a way for corporations to deflect attention from the theft of some $17 billion in wages, savings and earnings among American workers and a landscape where one in six workers is without employment. The speculators on Wall Street looted the U.S. Treasury. They stymied any kind of regulation. They have avoided criminal charges. They are stripping basic social services. And now they are demanding to run our schools and universities.

“Not only have the reformers removed poverty as a factor, they’ve removed students’ aptitude and motivation as factors,” said this teacher, who is in a teachers union. “They seem to believe that students are something like plants where you just add water and place them in the sun of your teaching and everything blooms. This is a fantasy that insults both student and teacher. The reformers have come up with a variety of insidious schemes pushed as steps to professionalize the profession of teaching. As they are all businessmen who know nothing of the field, it goes without saying that you do not do this by giving teachers autonomy and respect. They use merit pay in which teachers whose students do well on bubble tests will receive more money and teachers whose students do not do so well on bubble tests will receive less money. Of course, the only way this could conceivably be fair is to have an identical group of students in each class—an impossibility. The real purposes of merit pay are to divide teachers against themselves as they scramble for the brighter and more motivated students and to further institutionalize the idiot notion of standardized tests. There is a certain diabolical intelligence at work in both of these.”

“If the Bloomberg administration can be said to have succeeded in anything,” he said, “they have succeeded in turning schools into stress factories where teachers are running around wondering if it’s possible to please their principals and if their school will be open a year from now, if their union will still be there to offer some kind of protection, if they will still have jobs next year. This is not how you run a school system. It’s how you destroy one. The reformers and their friends in the media have created a Manichean world of bad teachers and effective teachers. In this alternative universe there are no other factors. Or, all other factors—poverty, depraved parents, mental illness and malnutrition—are all excuses of the Bad Teacher that can be overcome by hard work and the Effective Teacher.”

The truly educated become conscious. They become self-aware. They do not lie to themselves. They do not pretend that fraud is moral or that corporate greed is good. They do not claim that the demands of the marketplace can morally justify the hunger of children or denial of medical care to the sick. They do not throw 6 million families from their homes as the cost of doing business. Thought is a dialogue with one’s inner self. Those who think ask questions, questions those in authority do not want asked. They remember who we are, where we come from and where we should go. They remain eternally skeptical and distrustful of power. And they know that this moral independence is the only protection from the radical evil that results from collective unconsciousness. The capacity to think is the only bulwark against any centralized authority that seeks to impose mindless obedience. There is a huge difference, as Socrates understood, between teaching people what to think and teaching them how to think. Those who are endowed with a moral conscience refuse to commit crimes, even those sanctioned by the corporate state, because they do not in the end want to live with criminals—themselves.

“It is better to be at odds with the whole world than, being one, to be at odds with myself,” Socrates said.

Those who can ask the right questions are armed with the capacity to make a moral choice, to defend the good in the face of outside pressure. And this is why the philosopher Immanuel Kant puts the duties we have to ourselves before the duties we have to others. The standard for Kant is not the biblical idea of self-love—love thy neighbor as thyself, do unto others as you would have them do unto you—but self-respect. What brings us meaning and worth as human beings is our ability to stand up and pit ourselves against injustice and the vast, moral indifference of the universe. Once justice perishes, as Kant knew, life loses all meaning. Those who meekly obey laws and rules imposed from the outside—including religious laws—are not moral human beings. The fulfillment of an imposed law is morally neutral. The truly educated make their own wills serve the higher call of justice, empathy and reason. Socrates made the same argument when he said it is better to suffer wrong than to do wrong.

“The greatest evil perpetrated,” Hannah Arendt wrote, “is the evil committed by nobodies, that is, by human beings who refuse to be persons.”

As Arendt pointed out, we must trust only those who have this self-awareness. This self-awareness comes only through consciousness. It comes with the ability to look at a crime being committed and say “I can’t.” We must fear, Arendt warned, those whose moral system is built around the flimsy structure of blind obedience. We must fear those who cannot think. Unconscious civilizations become totalitarian wastelands.

“The greatest evildoers are those who don’t remember because they have never given thought to the matter, and, without remembrance, nothing can hold them back,” Arendt writes. “For human beings, thinking of past matters means moving in the dimension of depth, striking roots and thus stabilizing themselves, so as not to be swept away by whatever may occur—the Zeitgeist or History or simple temptation. The greatest evil is not radical, it has no roots, and because it has no roots it has no limitations, it can go to unthinkable extremes and sweep over the whole world.”

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Rubik’s Cube of Re-elections

April 8, 2011
By CHARLES M. BLOW

So, “The One” wants a Round Two.

This week President Obama made it official that he’s seeking a second turn. Make no mistake, that’s going to be hard.

In the prologue to “The Audacity of Hope,” Obama wrote: “I serve as a blank screen on which people of vastly different political stripes project their own views.” No more.

His tabula rasa days are gone. He now reflects fears and frustrations.

Differing factions now take a peephole view of the president’s performance — viewing him narrowly over whether he has performed as promised, or as expected, on the issue most important to them. The broader record, especially when weighed against the alternative, is virtually ignored.

For some, change has not come fast enough, if at all, or it has been change for the worse, and hope has slowly melted away. To those unhappy on the left, he’s a corporatist, war-waging, pusillanimous pushover who is silver-tongued and rubber-spined. To those who most oppose him on the right, he is a Socialist, spendthrift, republic-destroyer who is unfit, unqualified and literally, by way of his “Kenyan birth,” ineligible to be president.

He is held down by two afflictions of modern American politics: transitory memory and mercurial temper. So Obama’s best chances of winning re-election may well hinge on his ability to re-energize and engage two of his largest, strongest groups of supporters who have mostly avoided the negative labeling: blacks and Hispanics. But that won’t necessarily be easy either.

On Wednesday, President Obama delivered his first major speech after signaling his bid for re-election. It was to the Rev. Al Sharpton’s National Action Network. The next day, Gallup released a poll showing that in March, Obama’s approval rating among blacks had reached a personal low. (But, at 85 percent, it is still extraordinary.)

The same poll found that his approval rating among Hispanics dropped to 54 percent in March, matching a personal low. That is down more than a quarter from March of 2009 when it was 73 percent. Many are still understandably smarting over Obama’s broken promise to introduce comprehensive immigration reform in his first year. Meanwhile, he has presided over a record number of deportations of undocumented workers.

Last week, National Journal published a fascinating analysis that predicted that Obama would have to win about the same amount of, or more of, the white vote in states like Florida, Indiana, Missouri, North Carolina and Virginia if his support among minorities dropped by just 10 percent. That’s problematic on both counts. Obama’s approval among whites remains below 40 percent. (He won 43 percent of the white vote in 2008.) And if present trends continue, his support among minorities could be off by much more than 10 percent.

Obama must do the hard work of finding the right balance and combination with each of these groups.  It’s like the Rubik’s Cube of re-elections.

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N.C.A.A.’s Double Standard

By JOE NOCERA

I don’t know about you, but I had a hard time stomaching the sight of Jim Calhoun holding the championship trophy after Monday’s final game of the N.C.A.A. men’s basketball tournament.

Not because it was a lousy game (though it was), but because Calhoun, the pugnacious coach of the University of Connecticut “program” — as the big-money Division I teams are called — shouldn’t have been allowed anywhere near the gym. Just weeks earlier, the N.C.A.A. had sanctioned him for “failing to create an atmosphere of compliance” with its recruiting rules. To put it more bluntly: UConn cheated. Among the punishments meted out was a three-game suspension for Calhoun.

But this is the N.C.A.A. we’re talking about, an organization that bends over backward to accommodate big-time basketball schools like Connecticut that drive TV ratings, and marquee coaches like Calhoun, who, with his $2.3 million salary, is the highest-paid state employee in Connecticut. March Madness was right around the corner, so Calhoun’s suspension was (of course!) deferred until next season, allowing him to coach the team during the tournament. One of his own players described the school’s penalties as “a slap on the wrist.”

Shortly after Calhoun was handed his punishment, another member of an N.C.A.A. Division I program was also suspended — in his case, for six games. But he wasn’t a multimillionaire coach. Rather, he was 19-year-old Perry Jones III, a talented, 6-foot-11, African-American freshman at Baylor University, who, coincidentally, was the subject of a terrific profile by Michael Sokolove in The New York Times Magazine a month ago.

Was Jones allowed to delay his suspension? Surely you jest. The N.C.A.A. suspended him literally hours before the team’s conference tournament. Without Jones, Baylor lost big.

That Baylor’s season ended on such a sour note is hardly the tragedy here, of course. What is infuriating are the different ways Jones and Calhoun were treated, especially when you look at what they did. In trying to land a prized recruit, Calhoun and UConn broke the rules egregiously and repeatedly. Jones’s main crime was that he is poor.

Jones was in 10th grade when he supposedly broke the N.C.A.A.’s rules. (That’s right. You can break N.C.A.A. rules years before you become part of the N.C.A.A.) His mother, a cafeteria worker, has a heart condition so serious that she will likely need a transplant. Sometimes she’s confined to a wheelchair, causing her to miss work. During one such period, she got behind on her rent.

Three times, she asked Jones’s A.A.U. coach, whom she’d known for years, to lend her $1,200 to pay the rent. Each time, she repaid the loan as soon as she got her paycheck. That, believe it or not, is Jones’s transgression.

Jones says he had no idea his mother was borrowing money to pay the rent, which is completely believable. If you needed a short-term loan to keep from getting evicted, would you tell your teenage son? Yet the N.C.A.A. says that because she got the money from the coach, Jones was getting a benefit not available to nonathletes.

(Jones’s second transgression was going to a preseason Dallas Cowboys game with that same coach. The N.C.A.A. declared this a $500 benefit and has demanded that he donate $500 to charity to make amends. It does not say where he is supposed to find the money.)

I asked Stacey Osburn, an N.C.A.A. spokeswoman, how a player could be held responsible for something done without his knowledge. I asked her why Jones had to sit while Cam Newton, the star quarterback at highly ranked Auburn, was allowed to continue playing after it was discovered that his father had tried to auction off his son’s talents to the highest bidder. I asked her why five players from Ohio State were allowed to play in the lucrative Sugar Bowl this year after they had been caught selling O.S.U. paraphernalia and pocketing the money — and why their coach got only a two-game suspension, even though he knew what they had done and said nothing.

She wouldn’t give me a straight answer. “Every situation is different” is the best she could do.

Jones is what is called a “one and done” freshman, a player who comes to college with the expectation that he’ll jump to the N.B.A. after one season. As portrayed by The Times Magazine, though, he is such a gentle soul that he needs toughening up before he’s ready for the pros. Another year of college ball would clearly help him. He seems to understand this.

Rumor has it that he enjoys Baylor and would like to stay another year. But he’s still poor, and his mother’s still ill — and thanks to the N.C.A.A., he has been needlessly humiliated. If you’re Perry Jones, college can’t seem very appealing these days.

As for Calhoun, The Times reported earlier this week that he will pocket an $87,500 bonus for winning the N.C.A.A. Championship. The rich white guy wins again.

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Obama Will Lose in 2012 (April 5, 2011)

Predicting that Obama will be a one-term president is easy: Americans vote their pocketbooks.

There is nothing remotely ideological or personal in my prediction that President Obama will lose the 2012 election. Both parties are equally out of touch with reality in my view, and both suppport the same things: a global Empire, an increasingly intrusive Savior State, a shadow banking system which is no longer under the control of State institutions (rather, the banks control the institutions), and various crony-capitalist cartels which fund political campaigns and partner with the Central State’s bloated, unaccountable fiefdoms. The only visible difference between the two parties is slight variations in the relative growth rates of the most-favored cartels and fiefdoms.

President Obama seems like a nice guy. Many people said the same thing about George W. Bush. While a likeable personality is a plus in a media-obsessed society, American elections boil down to this: Americans vote their pocketbook, and their pocketbooks will be a lot lighter by November 2012.

President Obama has several key flaws which have doomed his presidency.

1. His leadership style is one of consensus and compromise. This works OK in a caretaker setting in which there are no crises and no demands for bold changes of course. Unfortunately, this era is defined by structural crises, and a leadership based on gaining consensus and compromise is basically a rudderless one in this environment.

2. He does not understand economics or finance, nor is he secure about making decisions on financial topics. As a result he deferred to the “experts,” who just happened to be Wall Street cronies and insiders who easily swayed the President with their hobgoblin stories of financial meltdown and ruin if we didn’t “save the banking sector from losses.”

3. His grasp of history is poor. The same can be said of most presidents, but Obama failed to grasp the historic opportunity to set a new sustainable course for the nation’s banking and financial sectors, and thus for its economy. He opted instead to save and protect the corrupt and embezzlement-based banking sector from losses, and he continues to do so with “extend and pretend” policies.

In a similar fashion, he has allowed the National Security State and the Global Empire to expand without any limitations.

4. He has no visible core beliefs beyond a vague sense that the Federal government and its extension, the American Empire, are forces for good. His policies can be boiled down to: support and expand the Savior State and its many fiefdoms, support and expand the Global Empire and National Security State, and allow the banking system and its Power Elites to set the agenda and control the oversight agencies and institutions.

His signature accomplishment, the “Obama-care reform” of the nation’s sickcare system, simply extends the power of existing cartels and fiefdoms and delivers an ever-larger slice of the national income to their coffers. In its basic parameters, the “reform” could easily have been supported and passed by socially liberal Republican presidents such as Richard Nixon. There is nothing remotely progressive or radical about “pooling” insurance cartels and wet-paper-bag bureaucratic tests of “the most effective treatments.”

These are simply technocratic layers added to a bloated, corrupt, venal and destructive system that already costs twice as much as those of our advanced-economy competitors.

In addition to these flaws, he has made fatal policy errors which doom the economy to implosion by November 2012. All of his administration’s policies can be distilled down to these three points:

1. The banking sector is the most important foundation of the economy. The Central State and its proxy, the Federal Reserve, pumped some $14 trillion (by some measures, $23 trillion) in cash, credit, guarantees and backstops into the banking sector and its cloaked twin, the Shadow banking System.

Meanwhile, little to nothing was done for the cash-strapped consumer or citizenry. Why?

2. The “problem” is lack of credit and “confidence.” If the State and Fed flood the banking system with credit and “restore confidence” by goosing the stock market, then people will start borrowing and spending again, and everything will be “fixed.”

This presumes demand is strong, and all that’s needed is credit for people to satisfy their thirst for more goods and services.

Meanwhile, back in reality, people realized they didn’t need a third car, fourth TV, 17th “cute blouse,” 23rd pair of shoes, etc., and now that their home is worth less than their mortgage (or their remaining equity is minimal), they can’t really afford the luxury travel, boats, etc. they enjoyed when they thought their house would keep rising in value forever and tapping that rising equity was painless.

Demand is slack because everyone who could afford more crap already owns more crap than they need or even want. The percentage of the populace who would like more stuff cannot afford more stuff. Their household incomes and wages are declining, and their expenses for essentials are rising.

The Fed’s largesse to banks (free money in unlimited quantities) doesn’t reach them; all it does is boost assets held by the top 10%.

3. Boosting the assets of this top 10% (or 20% if you include those who have equity of some sort beyond the $2,500 in their IRA) will cause a “wealth effect” that will “trickle down” to the lower 80% as the top 20% buy more Coach handbags, enjoy fine dining at tony upscale restaurants, etc.

Unfortunately, this may help boost Coach’s profit margins, but the vast majority of the “trickle-down” consists of low-paying retail clerks and busboys.

In other words, the “wealth effect” is bogus, a charade deployed to defend the pillaging of the economy via financialization and Fed intervention.

4. Pushing the dollar lower in a “beggar thy neighbor” currency war is the best way to boost the U.S. economy. Apparently no one in the President’s team looked at financial history to identify the nations which grew rich and powerful by debasing their currency.

In a perverse blowback to this misguided policy, corporate profits earned overseas were certainly goosed, but so were import prices, one of the reasons (along with the Fed’s easy-money quantitative easing) for rising costs to consumers.

If you set out to design a policy that impoverished 80% of the citizenry and channeled a larger share of the national income to the top 10%, then this is precisely the set of policies you would pursue.

Nothing important has been fixed; nothing important has even been addressed. The institutions of governance are captured and corraled by the monied Elites to the point that the government has lost control of its own institutions, which now rule as quasi-independent fiefdoms. The citizenry, bought off on the cheap by stale Bread (rapacious student loans, food stamps which offer the veneer of normalcy, extended unemployment benefits so no angry mobs form, etc.) and dazed and distracted by the Media Circus, keep quiet in their complicity, while the Power Elites revel in the freedoms offered by a caretaker Administration.

If President Obama had fought for fundamental structural reforms and lost, he would still have support. Yes, Congress holds the pursestrings, but let’s not forget the President appoints his own staff and advisors, and wields great power via Executive Orders. He could have submitted a 5-page Financial Reform Bill and promised to veto anything else. If the Power Elites watered it down, then he could have vetoed it and gone directly to the public. But he did none of these things.

Courtesy of correspondent George B., here is a chart of public and private debt over the past decade, from the St. Louis Federal Reserve. Notice that all the Administration and Congress have done is boost Federal debt to replace the “missing” private debt (missing because incomes are declining, housing equity has crashed and the consumer overborrowed for a decade).

This is mindless Keynesian policy on auto-pilot. As I have reported before, the Federal Government is borrowing and spending some $6 trillion in a mere four years, almost doubling the nation’s debt, and all that’s been accomplished is the Power Elites’ share of the national income has risen and GDP has flatlined.

The structural dislocations and imbalances remain firmly in place; a financial sector dependent on fraud has been “saved,” and an economy sick with an addiction to rampant financialization has been given plenty of smack to keep it from going through a desperately needed withdrawal.

The Keynesians have no answer as to when the economy will “recover” without the Central State borrowing 11% of GDP every year to prop up its various cartels and fiefdoms. They have no answer because they have no understanding of the imbalances, the fraud, the financialization or of the feudal partnership of the State and crony-capitalist cartels.

Obama has lost his “progressive” base, because he’s done nothing remotely progressive. He has lost the middle because his Administration has overseen their gradual impoverishment at the hands of Financial Power Elites. He has offered them phony facsimiles of reform slicked down with the tiresome “soaring rhetoric” of a con artist so besotted with his own story that he actually believes the BS himself.

He can count on the public-union vote and a few of the State fiefdoms he’s enriched and enlarged at the expense of the common good, but as the addict (the economy) goes downhill, slowly destroyed by the ever-larger doses of smack administered by the Fed and the Central State, then the consent of the governed will be irrevocably lost–not just by President Obama, but by the entire Status Quo.

The President is now a candidate hoping to scoop up a cool $1 billion to blow on another long, greasy media blitz, but I would be surprised if he rakes in much from the commoners and serfs straining to keep the wheels of their household finances turning. He will of course collect big bucks from various crony-cartels and contractors who have benefited from his bogus “reforms” and unstinting support of the banking sector, but his true-believer supporters will be thinned down to a few Elites, die-hard Democratic hacks and the delusional by mid-2012.

His opponents may fare little better unless they are willing to tackle the dominance of crony cartels, government fiefdoms and Financial Power Elites whose fat fingers remain firmly on the throat of the fast-expiring nation.

Readers forum: DailyJava.net.

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The Peasants Need Pitchforks

Posted on Apr 5, 2011

By Robert Scheer

A “working class hero,” John Lennon told us in his song of that title, “is something to be/ Keep you doped with religion and sex and TV/ And you think you’re so clever and classless and free/ But you’re still fucking peasants as far as I can see.”

The delusion of a classless America in which opportunity is equally distributed is the most effective deception perpetrated by the moneyed elite that controls all the key levers of power in what passes for our democracy. It is a myth blown away by Nobel Prize winner Joseph E. Stiglitz in the current issue of Vanity Fair. In an article titled “Of the 1%, by the 1%, for the 1%” Stiglitz states that the top thin layer of the superwealthy controls 40 percent of all wealth in what is now the most sharply class-divided of all developed nations: “Americans have been watching protests against repressive regimes that concentrate massive wealth in the hands of an elite few. Yet, in our own democracy, 1 percent of the people take nearly a quarter of the nation’s income—an inequality even the wealthy will come to regret.” 

That is the harsh reality obscured by the media’s focus on celebrity gossip, sports rivalries and lotteries, situations in which the average person can pretend that he or she is plugged into the winning side. The illusion of personal power substitutes consumer sovereignty—which smartphone to purchase—for real power over the decisions that affect our lives. Even though most Americans accept that the political game is rigged, we have long assumed that the choices we make in the economic sphere as to career and home are matters that respond to our wisdom and will. But the banking tsunami that wiped out so many jobs and so much homeownership has demonstrated that most Americans have no real control over any of that, and while they suffer, the corporate rich reward themselves in direct proportion to the amount of suffering they have caused. 

Instead of taxing the superrich on the bonuses dispensed by top corporations such as Exxon, Bank of America, General Electric, Chevron and Boeing, all of which managed to avoid paying any federal corporate taxes last year, the politicians of both parties in Congress are about to accede to the Republican demand that programs that help ordinary folks be cut to pay for the programs that bailed out the banks.

It is a reality further obscured by the academic elite, led by economists who receive enormous payoffs from Wall Street in speaking and consulting fees, and their less privileged university colleagues who are so often dependent upon wealthy sponsors for their research funding. Then there are the media, which are indistinguishable parts of the corporate-owned culture and which with rare exception pretend that we are all in the same lifeboat while they fawn in their coverage of those who bilk us and also dispense fat fees to top pundits. Complementing all that is the dark distraction of the faux populists, led by tea party demagogues, who blame unions and immigrants for the crimes of Wall Street hustlers.

My book on the banking meltdown, “The Great American Stickup,” begins with the following words. “They did it. Yes, there is a ‘they’: the captains of finance, their lobbyists, and allies among leading politicians of both parties, who together destroyed an American regulatory system that had been functioning splendidly. …” They got to rewrite the laws to enable their massive greed over everything from the tax codes to the sale of toxic derivatives over the past quarter century, smashing the American middle class and with it the nation’s experiment in democracy.

The lobbyists are deliberately bipartisan in their bribery, and the authors of our demise are equally marked as Democrats and Republicans. Ronald Reagan first effectively sang the siren song of ending government’s role in corporate crime prevention, but it was Democrat Bill Clinton who accomplished much of that goal. It is the enduring conceit of the top Democratic leaders that they are valiantly holding back the forces of evil when they actually have continuously been complicit.

The veterans of the Clinton years, so prominent in the Obama administration, still deny their role in the disaster of the last 25 years. Yet the sad tale of income inequality that Stiglitz laments is as much a result of their policies as those of their Republican rivals. In one of the best studies of this growing gap in income, economists Emmanuel Saez and Thomas Piketty found that during Clinton’s tenure in the White House the income of the top 1 percent increased by 10.1 percent per year, while that of the other 99 percent of Americans increased by only 2.4 percent a year. Thanks to President Clinton’s deregulation and the save-the-rich policies of George W. Bush, the situation deteriorated further from 2002 to 2006, a period in which the top 1 percent increased its income 11 percent annually while the rest of Americans had a truly paltry gain of 1 percent per year. 

And that was before the meltdown that wiped out the jobs and home values of so many tens of millions of American families. “The top 1 percent have the best houses, the best educations, the best doctors, and the best lifestyles,” Stiglitz concludes, “but there is one thing that money doesn’t seem to have bought: an understanding that their fate is bound up with how the other 99 percent live. Throughout history, this is something that the top 1 percent eventually do learn. Too late.”

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