The horizon is not so far as we can see, but as far as we can imagine

Month: February 2011 Page 2 of 3

Some thoughts on revolutions in the Middle East, China… and the West

Looks like Gaddafi is in a bad way: reports of brigades defecting, pilots refusing orders, 3 major tribes coming out against him and a Fatwa for his death.

This is interesting, because the lesson Gaddafi learned from the prior revolutions was clearly “use violence early and hard”.  If it doesn’t work, that’s important.

The lesson is the same as in Egypt: what matters is whether the army will obey orders to kill protesters.  You have to make them choose.  The Egyptians won when they marched on the Palace and presented the army with a choice.

What is required is not precisely non-violence: when attacked in Egypt the protesters fought back, but it is “minimal violence” so that the army is presented with a clear choice.

One shouldn’t assume this always works, it doesn’t. Sometimes the army will fire.  Back during Tiannamen, for example, the real question was what the army would do.  For a time it was in question, one army group looked like they might back the protesters.  But in the end, the army came down on the side of the regime, and that’s all she wrote.

While the so-called Jasmine revolution in China has gone nowhere so far, as I’ve long said, the implicit bargain in China is “economic growth in exchange for freedom.”  Chinese workers riot and strike all the time, villages have fought off police and army units.  Chinese workers work in horrible conditions and they are hardcore, the same way that 19th and early 20th century American workers were.  The potential explosion in China is huge, and the Communist party knows it. Economic growth must continue at all costs in China, because the ruling class knows their lives depend on it.

In America and most of the West, well, the ruling class knows (or believes) that no matter how bad they treat their citizens, they won’t revolt.  Revolting isn’t just protesting: in Egypt businesses were systematically shut down, Egypt was near an economic crisis.  In America, showing up and refusing to leave is good (I’m quite heartened by what’s happening in Wisconsin) but more than that is needed: you must shut the system down.  The French had the right idea when they occupied a refinery.

But, at the end of the day, the question is whether the army and the police will use violence.  If push comes to shove in the US, do you think the military will put Americans down?

And what is the simple demand in the US?  Gaddafi or Mubarak has to go is clear and simple.  What’s the simple change protesters can rally around in the US?  Obama has to go?  Wouldn’t fix the problems.  It would almost have to be a list, and there is no clear ideology on the left for what that list would be.  Protesting to just keep what you already have is all well and good, and even necessary, but it won’t stop the decline, it will only slow it.  Protesting not to keep bargaining rights, but to demand, say, card check union organizing, now that would do something.  And I agree with others that organizing recalls in Wisconsin is a first good step.

It’s nice to see some actual reason to hope in the world, as opposed to all the fake hope we are usually offered.  We’ll see how it turns out.  But notice it requires a lot of people willing to die, be beaten, be tortured or raped, to actually create change.

You don’t always get what you vote for

but you sure don’t get what you don’t vote for.

Fianna Fáil, the party in power for 20 of the past 23 years, faces a drubbing in Ireland’s general election on February 25, with Fine Gael, the other centre-right party, appearing to pick up support rather than the left-of-centre Labour party or more radical alternatives.

Guess the Irish are like Americans, they need to suffer a lot more before they get the point.  Of course, to be fair, the left parties didn’t provide a clear different option, either, so eh, they don’t deserve to win.

Meanwhile a friend just emailed me about Wisconsin.  I’m happy people are protesting, but the governor said, long before he was elected, that he intended to break public sector unions.  He’s just doing what he said he would do.  If you didn’t want it, why did you vote for it?

The Governor has a mandate.  Wisconsin voters gave it to him.

Elites continue to be mad for draining ordinary citizens

Image by Admit One

Simon Ward in the Financial Times argues that current inflation in the UK (running at 2.4% officially, or 2.75% by his estimates) represents “an overly-loose monetary policy stance” and requires the Bank of England to raise rates sooner than expected.

Now, by any historical standards in periods when everyone was prospering, 2.4% is not high.  Neither is 2.75%  In fact, because of price and wage stickiness, having low inflation (say at 2%) is anti-growth.  It makes it so that sectors in deflation can’t reduce relative costs, because they can’t drop nominal costs.  The author does go on to acknowledge that his argument is based on the Bank of England setting inflation targets correctly, but that’s entirely the point: most central banks aren’t, especially in the Western world.

As usual the issue is this: having come of age during the great stagflation spike of the 70s and early 80s, or having been trained and mentored by those who did, current decision makers are constantly fighting the last war, a war that ended almost 30 years ago.  They have a fear of inflation which borders on paranoia.  This isn’t 1980.  Attempts to fight inflation in particular sectors (meso-inflation) as if it is macro inflation, by using clumsy gross macro-tools will do more harm than good.  Absent a new great depression across the entire world, riptide inflation, especially in commodities and oligopoly goods, is not going away.

Particularly fascinating is Ward’s claim that since bank lending rates have become disassociated from official rates from the central bank, that a raise won’t effect the British recovery.  If it won’t effect rates, then one is hard pressed to understand what effect it will have at all.  The answer, according to Ward, appears to be psychological.  Raising a rate which does not effect actual rates will harm no one, but still reign in inflation.

This is magical thinking at its best, and deserves a visit from Tinkerbell.  Clap, or inflation will kill a fairy!

Rule for pundits: If you talk up cutting “entitlements” without mentioning defense you’re a dishonest hack

And, on top of that, citing Catholic moral teachings to do so without mentioning teachings on just war (the Iraq war wasn’t and isn’t) or usury, which tie into your own social classes interests does not make you look honest.  As senior managing Principle and founder of “Sovereign Trends, LLC”, you probably doesn’t need the sort of programs you want cut, but you certainly don’t mention  limits on how much your class can suck from the necks of the poor and middle to enrich themselves and I don’t see you advocating radical tax increases on your own class to pay for such frills as public education.

The citing of subsidiarity is also remarkable, since subsidiarity (making decisions at the level best suited to them) would actually suggest, for example, a federal takeover of the entire US primary education system, since it’s very clear that the current system is unfair,  that municipalities often don’t have the necessary resources and that municipalities and states are ensuring students don’t receive either accurate teaching of history or science: which is to say, they have proved they can’t handle the responsibility.  Likewise, State budgets, which are constrained, clearly cannot even handle Medicaid (health care for the poor, whom Jesus cared about a bit, I’m given to understand), so that sort of thing should clearly be entirely federalized.

A man who can call for the slashing on entitlements without mentioning the military or progressive taxation while citing Christianity as his authority is a man who should spend less time worrying about the public good and more about the state of his own soul.

How’s the eye of that needle looking?

Mubarak gone, military takes charge

Good news, probably. We’ll see if they rein in the secret police and the various corrupt police stations which run semi-autonomously and engage in much of the rape and torture.

Notice that this happened when the people marched on the presidential palace, and not before.

Endgame here is probably an Attaturk Turkish style democracy, where the military acts as the final guarantor.  Note also that the military has a lot of business interests in Egypt, and were enraged by Mubarak’s ne0liberal policies, like selling off banks, which damaged them significantly.

Congratulations to the protestors, who seem to have been organized in large part by Egyptian labor. This is a victory, however it turns out in the longer run.

AOL Buys Huffpo

Arianna Huffington cashes out.  This is the American dream baby, make something, then sell it to a soulless corporation which stands against everything you claim to stand for.  What do you care?  You’ve cashed out.

Cashing out is one of the biggest problems with American style business, actually.  Capitalism operating well requires making it difficult to cash out.  Cashing out almost always includes the creation of significant debt, debt which does not create new economic activity but which only weighs down the companies involved.  When it does not (as is largely the case here, to AOLs credit), it still means that money is used for ownership changes rather than to create new economic activity.

As for Arianna, it’s been clear for a while that Huffpo was becoming less and less progressive or liberal and more and more a business for business sakes.  The model for Huffpo was always that the entertainment and gossip news would drive the traffic, that traffic would slop over into the more progressive and political writing, and would pay for it.

In other words, the entertainment pays for the politics, just as in the old days, news on the big networks was either a loss loser or not particularly profitable compared to other types of programming.  When the MBA types took over, that meant turning the news into “infotainment”, or segregating into cable, a niche market.  Because there is only one value in post Reagan business in America: making money.  Anything which interferes with making the most money possible (for you, not for your shareholders, don’t make me laugh) must be gotten rid of.

As for Arianna, she got her second payday.  Hope the price she was paid was worth what she sold to get it.

All that said, AOL has been doing some interesting things lately, such as their emphasis on local news.  We’ll see how it plays out.  Having watched Huffpos changes over the years, however, I am not sanguine.

Master and Slave Morality

Just read a large piece on strategic defaults in the Huffington Post.  That is to say, walking away from bad mortgages you can’t pay off, especially when the value of the loan is more than the value of the house.  Most of them felt horrible for walking away.

The bottom line is this: there is one morality for masters and one for slaves. Your lords and masters, who have made you or are making you into a wage or debt slave, have one morality and you have another.  The masters don’t just walk away from bad debts, they force other people to pay the master’s debts off or they change the laws so that the masters debts don’t count.

It is, for them, a cold clear business decision. They do what is best for them, no matter what the cost to anyone else.  When dealing with the master class, you should operate in the same cold clear fashion: you do what’s best for you and if it hurts a corporation or a rich person, that’s their look out.

Trust me, that’s the way they do it.  The cost of the financial crisis is a millions of destroyed lives, including many many deaths.  You don’t see any of the people who caused it having moral crises over the fact that they caused a depression, do you?

As the sociopaths on Wall Street like to say, they eat what they kill.  What they don’t say is that what they kill, is you.  If you’ve lost your house, if you can’t afford your medicine, if your interest rates or the cost of your food has gone up, if someone you know has died due to poor or not health care, odds are high that’s because they made that choice, because that suffering pays for their bonuses, for their foie gras, vacations in the Hamptoms and so on.

It’s you or them, baby, and they’re determined it’s going to be you.  So keep acting like slaves, so they can dine off your suffering, misery and death.

The Egyptian Bottom Line

Let’s be real clear, people, what do you think will happen to the protesters if Mubarak’s regime (whether he’s specifically in charge or not) remains in power?

Can you say arrests and torture?

Sure you can.

Those are the stakes.  They can win, or they can get tortured.  When you enter the lion’s den, you better be willing to kill the damn thing, or at best, you’re getting mauled.

What should Obama do?  I don’t much care, honestly, so long as he doesn’t actually support the regime.

It’s really up to Egyptians. Either they have what it takes to finish the job (I’d suggest Mubarak needs a Ceauşescu moment), or they don’t. If they don’t, those who protested can expect to have a lot of intimate time with Mubarak’s thugs in which to mull over their inability to drive the spear home.

In between screams, of course.  Contrary to what you might think, I’ve found those lingering moments between screams is a good time to realize how you fucked up.

Update: Jesus wept, save me from Obama’s brand of “help”:

The Obama administration is discussing with Egyptian officials a proposal for President Hosni Mubarak to resign immediately, turning over power to a transitional government headed by Vice President Omar Suleiman with the support of the Egyptian military, administration officials and Arab diplomats said Thursday.

Oh yes, a “transitional” government with Mubarak’s chief torturer in charge.  Obama’s a lot like Bush in this respect, as in many others, you really, really, really don’t want his “help”.

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