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London Riots #3: Context

2011 August 9
by Ian Welsh

Wow, just wow:

One journalist wrote that he was surprised how many people in Tottenham knew of and were critical of the IPCC, but there should be nothing surprising about this. When you look at the figures for deaths in police custody (at least 333 since 1998 and not a single conviction of any police officer for any of them), then the IPCC and the courts are seen by many, quite reasonably, to be protecting the police rather than the people.

Yeah.  Ok.  Go read the rest.  What is surprising is that they hadn’t already rioted.

No war but class war, folks.  The rich understand this, and they have been practicing it.

Screw Optimism and screw “sanity”

2011 August 9
by Ian Welsh

I recently stumbled across a book on the link between leadership and what we call madness.  From the Amazon review:

Take realism, for instance: study after study has shown that those suffering depression are better than “normal” people at assessing current threats and predicting future outcomes. Looking at Lincoln and Churchill among others, Ghaemi shows how depressive realism helped these men tackle challenges both personal and national. Or consider creativity, a quality psychiatrists have studied extensively in relation to bipolar disorder. A First-Rate Madness shows how mania inspired General Sherman and Ted Turner to design and execute their most creative-and successful-strategies.

Ghaemi’s thesis is both robust and expansive; he even explains why eminently sane men like Neville Chamberlain and George W. Bush made such poor leaders. Though sane people are better shepherds in good times, sanity can be a severe liability in moments of crisis. A lifetime without the cyclical torment of mood disorders, Ghaemi explains, can leave one ill equipped to endure dire straits. He also clarifies which kinds of insanity-like psychosis-make for despotism and ineptitude, sometimes on a grand scale.

Now, I’m not depressive, strictly speaking.  I don’t stay in bed all day, and so on. But the Welsh family motto, no kidding, is this:

An optimist and a damn fool are the same thing.

Ordinary people, what we call “sane” in our society, are really shitty analysts.  Really, really shitty analysts.  Their bias to the upside is tiresome, predictable and makes them wrong, over and over and over again.  They don’t know what real threats are, they constantly are confused about what is really dangerous.  They think stranger pedophiles are a big danger to their kids, while it’s their family members or their own driving.  They think terrorism is dangerous, when almost no one dies from it, as opposed to crossing the street or eating too many Big Macs.  They fear “Osama” when the men who are most likely to cause their death or impoverishment have names like Bush, Paulson, Geithner, Obama and so on.

I walked through Calcutta’s slums, as a teenager, by myself.  I know what’s actually dangerous, and what isn’t.  But my parents didn’t coddle me, didn’t think their job was to make sure I never faced any danger, no matter how minor, so that when released as an adult I wouldn’t know how to evaluate threats.  They also didn’t think my self-esteem should outrun my ability.

Of course optimism is wonderfully adaptive as long as optimists aren’t your leaders or analysts, and don’t run your nuclear power plants, or plan your economies, or make any decisions about anything which if it goes wrong can go catastrophically wrong.  Optimists are happier, they live longer, they’re healthier, they “get up and go”, blah, blah, blah.  Optimism is good for optimists and hey, they’re generally more pleasant to be around, too.  There are time periods when they’re even right a lot (say during the 50s).  But basically, they’re blind.  One imagines conversations between cows. “Hey, they feed us every day, we get free health care, no real responsibility!  The dog makes sure the wolves don’t bother us.  This is great!  I do wonder what happened to Thelma and Fred, when they took them away in that truck?  But I’m sure it wasn’t anything bad, and if it was they must have deserved it, and anyway, that’d never happen to me, because I’m a good cow and this is the best herd in the whole world!”

And you can tell people what will happen, in advance, and be right, over and over and over again.  And what that will do is get you marginalized.  “Oh, he’s so negative! Such a downer. He should make us feel good about ourselves and our future, and if he doesn’t, we won’t listen. Let’s watch some TV!”

The stuff that makes you a good everyday person, a pal at the pub, the best husband or wife, boyfriend or girlfriend, mother or father, does not make you a good analyst or a good leader.  Choosing other sheep to lead you, to guide you, gets you what you’re getting right now, good and hard.

And the medicalization of every bad mood, as if we’re supposed to never experience negative emotions is more psychotic than the “diseases” they are intended to treat.  Yes, some people are so insane that they need big time help, and being drugged, but way more people than that are being drugged.

Likewise I am beyond tired of the excessive stigmatization of anger and hatred.  It is appropriate to hate some people.  If you don’t hate a man who has killed tens to hundreds of thousands of people (you don’t know because he refused to count) for a war based on lies, while gutting your civil rights, you are either a saint or your values are so fucked up I don’t even know what to say.  You hate some people (yes, you do, don’t deny it), why don’t you hate the people who are actually doing evil on an industrial scale and who directly threaten your prosperity and your good life?  And why, exactly, aren’t you angry?  Again, don’t tell me you don’t get angry (unless you’re a saint), so why aren’t you angry at the people who are destroying your future and the future of your children?

Oh, right, because most people suck at threat analysis.  They don’t even know what or who is really dangerous.  They don’t /want/ to believe that people who look like they’d be great to have a beer with, or Uncle Fred, or driving their beloved automobile, or the food that they eat, is what’s actually going to kill them, make them sick, or hurt the kid they profess is just the most special and important person in their life, except when it comes to making sure the kid will have a world worth living in.

So folks.  Hate can be awful, it can lead to awful crimes.  But you’re going to hate someone, so learn who to hate.  Anger can be terrible, few people know that better than I do, as my father’s temper was the terror of my youth, but you’re going to be angry, know when and with who to get angry with, and stop displacing your anger.

And screw hope.  Screw optimism.  Really, seriously.  Hope is like pride, you should have exactly as much hope as the circumstances dictate, and no more.

But you can’t live that way.  I know.  You need your hope.  You need to believe.

Ok.  That’s fine.  I understand. Variety is good.

But don’t insist that everyone else be like you.  And understand your own weaknesses.  Know what you suck at.  Find the people who don’t suck at those things, figure out which ones to trust (that’s a whole other essay) and listen to them.  No one is good at everything (I sure as hell am not), but a wise person knows what they are bad at.

Who is mad?  The pessimist, the depressive, who accurately understands the world around him, or the hope filled optimists who are blind to real threats, can’t predict the future worth a damn and who select their leaders based on “wouldn’t it be great to have a beer with him?”

I don’t know, and I don’t even really care.  But I do know that when I want to have good time at a party, or I need a good salesman, I look for different abilities than I do in good analysts and good leaders.  That the person who runs my nuclear plants should not be Mr. Fucking Sunshine, “it’ll all work out for the best!”

Just, no.

And stop drugging your kids en-masse.  Ok?  Just stop.

London Burning #2

2011 August 9
by Ian Welsh

The oligarchs are overplaying their hand.

Noone expected this. The so-called leaders who have taken three solid days to return from their foreign holidays to a country in flames did not anticipate this. The people running Britain had absolutely no clue how desperate things had become. They thought that after thirty years of soaring inequality, in the middle of a recession, they could take away the last little things that gave people hope, the benefits, the jobs, the possibility of higher education, the support structures, and nothing would happen. They were wrong. And now my city is burning, and it will continue to burn until we stop the blanket condemnations and blind conjecture and try to understand just what has brought viral civil unrest to Britain. Let me give you a hint: it ain’t Twitter.

Notice some other things: Kettling doesn’t work against prepared protesters.  They broke the kettling attempts with bolt cutters.  Notice the masks.  These people have put some thought into what they’re doing.

Next step, next riots, if they keep thinking things through, will be systematic destruction of the CCTV system, taking out police stations, and occupation of the financial district.

Another quote:

In one NBC report, a young man in Tottenham was asked if rioting really achieved anything:“Yes,” said the young man. “You wouldn’t be talking to me now if we didn’t riot, would you?”

“Two months ago we marched to Scotland Yard, more than 2,000 of us, all blacks, and it was peaceful and calm and you know what? Not a word in the press. Last night a bit of rioting and looting and look around you.”

Eavesdropping from among the onlookers, I looked around. A dozen TV crews and newspaper reporters interviewing the young men everywhere ‘’’

There are communities all over the country that nobody paid attention to unless there had recently been a riot or a murdered child. Well, they’re paying attention now.

What was that quote from someone whose named started with J?  Something about those who make peaceful revolution impossible make violent revolution inevitable?

Don’t think this isn’t a big deal. This is a major capital.  London is one of the world’s great cities and a hub of the financial system.  And the rioters are showing it can be done, that if people fight the police rather than sitting passively, the police suddenly aren’t all-powerful.

Oh, and don’t take hope, a future and respect away from young men in large numbers. Smart oligarchies/aristocracies understand that you have to keep a certain number of the violent classes employed. Not for their sake, but for the oligarchs.

The London riots

2011 August 8
by Ian Welsh

As I wrote before:

Meanwhile in England, the Cameron government’s massive slashes to education hit virtually all at once, making an entire cohort of young people know exactly who just did their level best to destroy their lives.  This is important, to put it bluntly, young males who don’t have enough money to settle down with a young female are extraordinarily dangerous to the state.

The Conservative austerity measures are destroying the possibility of a future for a generation of young people.  There is this weird idea amongst English elites, which I encountered in person during my London visit, that the problem in England is their welfare culture.  In other words,after a financial crisis virtually entirely caused by the rich, the response has been to slash spending on the poor and middle class to pay for bailouts for the rich, who, by any sane reading of the crisis, caused the disaster.

Round after round of bailouts have failed, because they keep just throwing money at the problem.  As I wrote in 2008:

So you’re in a boat, and it starts taking on water. You grab a bucket and start bailing. What do you tell the rest of the crew?”Find the hole, and plug it.”…

… If you don’t patch the hull, if you don’t make significant regulatory changes at the same time as you are creating a bailout bill, you’re just buying time. The ship may stay afloat as long as you don’t stop ferrying buckets of money to the financial sector, but it’s still got a massive hole in the hull and it’s still taking on water.

Any bailout bill that does not have significant regulatory changes will not solve the problem. It will, at best, kick it down the road for as long as taxpayers are willing to fork over a hundred billion a month or so to keep it from exploding. It may even make the problem worse because of moral hazard—heads the financier who makes a bet wins, tails the government bails him out.

This has played out again, and again, especially in Europe, where lawmakers do bailout after bailout of banks (they’re not bailing out the governments, they’re bailing out their creditors), refusing to do what must be done, which is a massive restructuring of all the debt in the key nations (100 year bonds, paying 1%, say) or an outright default.  They are making ordinary people pay for their masters sins.  And they are putting the worst of it on the people who they feel are least powerful: the young, immigrants, the poor and so on.

The response to a system which refuses to do the right thing, which offers Coke-Pepsi politics (if you don’t like Coke, you can always have Pepsi!) is turning more and more violent. If electoral politics offers no solution, people will look for one elsewhere.

Our elites live in a bubble. They think that what happens on the street doesn’t really effect them.  There will come a day when many of them will be wrong.  They’re playing with their lives, with our lives, and with the lives of their families and loved ones.

What will happen in each country will be different.  Some will get a man on horseback, some will screw in the repression and hang on, turning into aristocracies, others may find what many on the left are insisting on, a Robespierre. And maybe one or two will do the right thing, stop the bailouts, stop the reforms, and make a commitment to restructure in a way which creates a future for everyone.

Maybe.

Comments on the S&P Downgrade

2011 August 6
by Ian Welsh

Aside from hysterical laughter, here are the key points:

  1. Obviously the US isn’t even close to insolvent.  The gold in Fort Knox is held on the books at $37/ounce, for example.  Most Federal lands are held on the books at 19th century valuations.  Not to mention that the US’s debt is denominated in its own currency, which means it could simply be printed, and that the US government has a lot of unused room to tax, should it ever deign to use that on people with money, as opposed to those without.
  2. As everyone is pointing out, the idea that S&P, who rated all the subprime trash as AAA, has any credibility, is a joke.
  3. However, Obama and Democrats refused to destroy S&P when they had the opportunity and every reason to do so.  The submprime crisis could not have been nearly as bad without S&P and the other rating’s agencies rating trash AAA so that investors who must buy AAA by law could do so.  To put it simply, S&P engaged in systematic fraud.  They, like everyone on Wall Street and in the major banks, have not been indicted for this.  The choice to not indict is policy.  Obama’s policy.
  4. If Obama did not want this to happen, it would not happen.  Could you imagine what LBJ, Nixon or Truman (or, hell, Bush Jr.) would have done if a rating’s agency tried this?  The President has the necessary tools to utterly destroy S&P and every senior analyst working for them.  You could use terrorism statutes or RICO, just as two examples.  Send the FBI into their offices, seize all the assets of both the company and everyone working for it, and then got through their records.   I guarantee, as absolutely as the sun will rise tomorrow morning, that there is enough evidence of fraud in those records to put them away for life.  In the meantime, RICO laws are used to seize all the assets of everyone involved, meaning they will be using public defenders (don’t like a bad law? Use it against real people.)  When S&P informed the White House they were going to downgrade, the White House could have quietly let them know what the consequences would be.
  5. The US has effectively unlimited drawing rights from the IMF.  Those drawing rights mean that if any of the core economies have an AAA rating, in effect, so does the US.  (ie. if Germany is AAA, so is America.)
  6. S&P knows all this.  They are doing this because they know the President and Congress and the real people in the oligarchy want it done.  Remember, a downgrade increases rates, and that is a direct increase to their income.  And they know the US can pay, they aren’t fooled by idiotic talk about a default.  The US may default at some point, but that will be a political decision.
  7. This is another manufactured crisis, on top of the original manufactured debt ceiling crisis.  The oligarchy wants the opportunity to buy federal assets at dimes on the dollar. They believe they don’t need the poor or middle class anymore, so they are good with getting rid of SS and Medicare.  And Obama is, as he always has been, onside with this.

These people, are, however, playing with fire.  Just because it’s a crisis that didn’t have to happen, a crisis, that is manufactured as another looting opportunity, doesn’t mean that it won’t have real consequences.

If you’re pro-Obama you’re an idiot, on the payroll, or evil

2011 August 4
by Ian Welsh

Look folks, at this point, Obama has made possible what a Republican president like McCain couldn’t do.  What a Republican president like Bush failed to do: he is gutting social security and Medicare.

Americans would have been better off with McCain because the Democratic party would not have allowed what just happened, and the GOP would have just passed McCain’s debt limit increase.

This doesn’t mean the next Republican president won’t be worse than Obama, he probably will.  But he will be worse in large part because of Obama, because Obama has institutionalized Bush’s constitutional order and taken it even further, in creating the so-called Super Congress to end run the democratic process.  He will be worse because Obama, by legitimizing “deficits are evil” and delegitimizing civilian Keynesian stimulus (by screwing it up, which I predicted the day he announced his botched stimulus bill) he has made the only possible Keynesian stimulus a military one.  At some point President Teabag will realize that the only thing which will provide enough help to the economy to get him reelected is a new, even bigger war.

This, along with a nuclear bomb to the economy, is Obama’s legacy.  And if you are still shilling for him, I hope to hell you’re on the payroll, because at least then you have a good reason for it.  Otherwise you’re a fool, or far, far worse.

What the Debt Limit Crisis Should Have Taught You

2011 July 31
by Ian Welsh

This is not primarily about the Tea Party

It is about what rich donors want.  The Tea Party does not even have the amount of muscle progressives do.  Progressives can bring tens of thousands of people out, the Tea Party can rarely even get above 1,000.  They are a convenient excuse to do what the Beltway and the oligarchs already want to do.

Where are you going to go?

Both Dems and Republicans are onside with cutting Social Security and Medicare. They are only third rails if there is someone else to vote for.

The deals being offered will cause a second downleg of the Depression and a worse one

We’re in a Depression.  This is fact.  Anyone who doesn’t call it that is gutless, stupid or uninformed.  This will make it worse, not just for the US, but for the entire developed world.

Representatives work for the people who pay them

That isn’t really you.  They don’t become multi-millionaires on their salaries, you know.  It’s their donors, the people who hire their wives and children, the people who fund their campaigns, the people who give them good jobs when they leave government.  If you want Reps and Senators to work for you, you must pay them better, you must fund their campaigns (and sharply limit outside funding) and you must make it illegal for them to EVER make more money in a year than their government salary (index it to an average of the median wage, the minimum wage, and CPI).  You should do what Canada used to do and give them a good pension after 6 years.  You DON’T want them worrying about their next job, or what they’ll do if they’ll lose.

Point being, they don’t work for you.

This is a representative plutocracy

I believe Stirling Newberry, in the early 90s, pointed this out first.  Politicians are paid by people other than you.  You are the product.  Think of this as the Facebook rule, if you aren’t paying for something, then you are the product.  The rich pay politicians to rangle you.  The amount of salary and public funding most Reps get is trivial compared to how much money they get from donors, even during their time in elected office, let alone after they leave.  You are the product, not the customer, of DC politicians.  They do not represent you, and you should not expect your interests to be looked after except as an afterthought.  When the oligarchs all agree that something needs to be done (like cut entitlements), it will be done, no matter how unpopular it is.

This “Crisis” is what Obama wanted

Again, if he didn’t, he would have raised the debt ceiling in the lame duck.  Nancy Pelosi was always very good at getting those sort of basic housekeeping bills through. It would have passed.  Period.  Obama wanted to cut SS and Medicare, and he needed a “crisis” in order to do it.  He also needed a Republican House, which he had, because his policies during 2009 and 2010 didn’t fix the economy.

You should have been working on nothing but primarying Obama since the day after the midterms

If you don’t understand why, I can’t help you.

There is no war but class war

Break the rich, or they will finish institutionalizing aristocracy.  Period.

Boehner’s plan has 900 billion in cuts

2011 July 29
by Ian Welsh

Obama’s has 4 trillion.

Boehner’s plan also calls for a committee to find another 1.8 billion.  Even with that, we’re talking 2.7 billion of cuts, still less than Obama’s plan

That is all.

Predicted August 2nd 2008

2011 July 29
by Ian Welsh

20) A huge push to gut entitlements in 2009, no matter who is president. Even if the US quickly pulls out of Iraq, the deficit will be totally out of control, and hundreds of billions will be needed for bailouts. A rapid consensus will form that rather than increasing taxes significantly on the rich, or slashing expenses like the military R&D and equipment appropriations budget, that the real problem is people retiring at 65, poor people getting Medicaid and old folks who aren’t destitute receiving Medicare.

On January 4th, 2009, I wrote:

I think I got this one wrong, given the consensus forming for a large stimulus (assuming the Republicans don’t kill it.)  We’ll see, but I’ve tentatively marked it wrong.

Stirling Newberry asks if Obama is the worst president in American History

2011 July 27
by Ian Welsh

Well?  Go on over, and see what you think, where does Obama rank in terms of worst presidents ever? I mean, he didn’t/hasn’t caused a civil war, so he’s probably not in first place.  But…

Also a detailed explanation of how the debt limit is raised, and a good list of the worst things Obama has done.  (I was going to say mistakes, but he didn’t do them by mistake.)