Ian Welsh

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

A Long, Hot Summer

Back when Obama was elected, I was still an A-list blogger, and had some access. We advised Obama and the Senators creating the new financial laws that the correct action was to take over the banks and break them up, while bailing out Main Street. Criminal charges should be laid against bankers under RICO statutes for fraud, to ensure nothing like this happened again.

If they did not follow our advice, we warned that it would eventually lead both a strengthening of the populist right and to civil unrest.

Of course, they didn’t take that advice, and given who Obama chose to run his administration that should hardly have been a surprise. Indeed, it was Obama who pushed TARP through after it failed the first time–Pelosi was not going to pass it if Republicans would not vote for it in equal percentages, and they wouldn’t. Obama twisted arms, and the reports I received were that the threats were absolutely savage. TARP was, though most Democrats will not admit it, ultimately Obama’s bill, whether it was originally Bush’s or not.

It is after the 2008 financial crisis that American pathology starts going off the charts: We start seeing declining life expectancy among the working class, the opiate crisis spreads to poor and many middle class whites, and so on. It takes years for jobs to return, and inequality soars; it was worse under Obama than any other previous president. Yes, this is a continuation of trend, but Obama could have stopped it, simply by enforcing laws as written.

The response to the financial crisis set the standard: Bail out the rich, fuck the poor people–they receive some crumbs. This was repeated when Covid-19 hit, with multi-trillion dollar bailouts for the rich, and a single $1,200 check for everyone else, with some technocratic fixes around the edges. Billionaires gained control over more of the economy, small businesses were and are being gutted, and crisis capitalists are waiting to snap up billions in distressed businesses and properties.

The rich get richer, the poor get poorer.

Meanwhile the neoliberal playbook, which was always about making the rich richer and everyone else poorer and about gutting the middle class the New Deal order built, kept the poors down by locking them up and with routing police brutality. Incarceration soared under neoliberal rulership, and Joe Biden was one of the architects, though you can see the trend starts under Reagan.

And so here we are, with protests and riots throughout the US. This was a long time coming, and it came because the lords and masters in the US refuse to throw anybody but the rich more than scraps. They funnel gold and caviar to the already wealthy at every opportunity; cat food to everyone else. They beat down anyone who acts uppity, giving cops massive license to be brutal, arming them with military weapons, and having them taught by Israelis whose experience is in beating down Palestinians in the occupied territories: people with no rights, regarded by Israelis as subhuman (no, don’t even pretend otherwise).

The cops see violence and brutality as their right. Any challenge to their authority is met with cruelty and abuse of power. They are fundamentally cowards, because they don’t believe their victims have any right to fight or even talk back. (Their essential cowardice has been proven when they are threatened, and is a weakness which could easily be exploited.)

Right now there is no reason to believe than any of the new Covid-19 bills will do more than give crumbs out. Food stamps are under threat of further restriction and, in New York, Governor Cuomo (whose popularity has increased despite his complete malign incompetence in handling Covid-19) used the crisis as part of his excuse to cut Medicaid, while keeping non violent offenders locked up in prison so that Covid could kill them.

Long and short, neoliberal elites don’t know how to give. They don’t have the instinct that New Deal elites, for all their flaws, had, that the job of government is prosperity for the masses. They know it is prosperity for the few, they feel in their bones that anyone who is poor doesn’t deserve more than a little bit of pity charity, and their instinct is punitive; the poor and middle class are undeserving and if they get uppity, what they need is a good smack.

Covid is not going to go away this summer. Multiple states have reopened without getting it even remotely under control. Testing has been reduced, but even so numbers show only minor decreases.

So we have a pandemic, a population nearing 30 percent unemployment, people who can’t pay the rent, and 40 years of impoverishment and brutality.

This summer has been a long time coming, and it’s only starting. Even if this wave of protests is crushed, or dies down, the smart money is that it isn’t the last wave.

And that’s a good thing.

Because as long as your lords and masters know they can only give you scraps and feed themselves at gold plated troughs, that’s how it’ll be.

If you are reading this, understand that this dynamic means that there can be no peace while the current ideology rules. The only possible peace is the peace of impoverished serfdom, of people beaten so far into the ground that they simply accept that everything will keep getting worse for them while the rich feast.

There is no good future for the US if neoliberalism, and neoliberal elites, continue to rule.

Take that into account in your planning.

And get ready for that long, hot summer.


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June 2nd US Covid Stats

Our benefactor writes:

Even with the suspension of testing in many locations, COVID-19 persists. Maybe the thinking is that we could just ignore it, and it would go away. It’s nice to see many protesters fully masked.

You’ll notice that the charts haven’t declined that much. With relaxation on restrictions, there’s no reason to believe they will, though I suppose testing less may give the illusion they have.


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The Age of War and Revolution

The Course of Empire by Thomas Cole

The Course of Empire by Thomas Cole

Sometimes it is necessary to re-post older articles. We’ve been in the Fall Of Neoliberlism period for some time, but a larger era is that of War and Revolution. The failures and the end of neoliberalism are part of this era, but it is more than their sum, because it also the end of an ecological era and the beginning of a new technological era (telecom and autonomous robots.)

With the eruption of riots due to the failures of neoliberalism and US imperialism (Covid-19 was mostly a given, the response was not), I think it’s worth revisiting this article to set the scene.

This is the age you will live in for most of your life if you are young. If you are old, it is your permanent fate. Originally posted April 26th, 2017.

I have labelled the next era “the age of war and revolution,” in fact, I’ve even made a blog category for it.

I expect this for economic, geopolitical, technological, and environmental reasons.

Economic

The developed world has soaring inequality and is stagnated. Real value is not being created, instead it is being cannibalized through financial games by rentiers; they take all the profits and download all the risk on to others, as the 2008/9 bailouts illustrated (the bankers are fine, no one else is).

Deliberate austerity through political decisions has damaged the economy. Demand has been insufficient for decades, but we are now extremely sclerotic after the response to the financial crisis was “bail out the people who caused it, make everyone else pay.” Even by the logic of capitalism, this is crazed: Capitalism says, “If you lose your money, you weren’t allocating it properly.” Capitalism works, to the extent that it works, because people who make good allocation decisions get more money, and thus, get to make more allocation decisions, while those who allocate money (really, resources) badly, lose it, and no longer get to make as many decisions.

Bankers, who are the primary resource allocators in our society (it is not even close, they create the vast majority of all money, not governments), made such bad decisions, on aggregate, that they lost all their money.  Under capitalism, that’s how it would have stayed, and other people would have taken over their function, having learned from their loss.

Because we refused to do this, the opposite lesson was learned, which was: ‘Do more of this.’ And so, the policies which drove us into the ground continue.

Now, like the old-fashioned white male CIS blah, blah, that I am, I am lumping a lot of the social issues under the umbrella of economics. That isn’t because they are entirely caused by economics, but because economics is the independent variable which is driving the rise of the “alt right” and so on. As the economy has become worse, people have fallen back on whatever identity they already have, and found enemies. That is what people do.

Back in the mid 70s, I said to my father “I don’t see a lot of racism.” (I lived in Vancouver, flush with Chinese.) He shook his head and said, “No, because times are good. Wait ’til times are bad, you’ll see plenty then.” My father was a child of the Great Depression.

‘Nough said.

Alternatives to neoliberalism will continue to rise. Neoliberalism is now a zombie. It still shuffles along, eating brains, but it’s dead and the only question is how many people it will impoverish and kill before it dies. Well, and what will replace it.

I want to emphasize something here: almost all social welfare statistics track economic inequality, not absolute access to goods.  People are happy, or sick, or whatever, based on how unequal their society is, and almost nothing else, provided the society is beyond the bare subsistence level.

Inequality matters, it drives almost everything.  People who feel unequal are unhappier, stressed and sick. The data on this is conclusive, those who wish to read it, may look it up in the book “The Spirit Level”.

So it doesn’t matter if Thelma has a TV and a smartphone, what matters is that she’s scared all the time because if she loses her job she’s screwed, and as a result she has to do whatever her boss says.  She has little real freedom, save the right to become homeless.  And that fear is constantly there, even if it is subconscious.

This fear goes right through the economy, including in many who would be considered upper class (not rich, but the professionals who make 150K+/year).  Anecdotally, almost all upper class and upper middle class women seem to be on psychoactive prescription drugs, for example.

Economic problems take time to ripple thru political system because after 30 most people don’t tend to change their views. They believe what they believe, they are who they are, and while age produces real changes, it doesn’t tend to change their politics, absent absolute catastrophe.

But we are now moving to the other side of that. For decades people put up with decline, but now the youngsters, some of whom are in their early 30s, have never known anything but a failed system and a bad economy.  This political world has never worked for them, ever: they have no emotional investment in it, no habit of supporting it.

So, as we continue our economic decline; as inequality gets worse and worse, and as the coming generations move to the age where they are politically viable, the current time ends.

The next set of rulers and their supporters will try new things; new systems.  They will be willing to revolt.  The age of neoliberalism is all but over.

Geopolitical

The United States is in decline. China is now the world’s largest manufacturer, with a larger population.

Historically, declining empires (and if you don’t believe that the US is an empire, please search for a map showing all American overseas military bases and consider that the US routinely bombs countries it doesn’t like, without a declaration of war), always spawn wars and crises.  The decline of England spawned two world wars, fighting against the rising power, Germany.  (America won that.)  Spain’s decline caused great convulsions, and so on.

America arrogates a great deal of power to itself.  China building islands in what is, after all, their near sea, is China saying “we are the power here, not you. You cannot use your fleet here freely any more.”  (Well, the US still can, but not for much longer, if China doesn’t like it.)

In pre-industrial societies military power did not always (or even often) track economic capacity.  (The Chinese, twice conquered by horse nomads, are well aware of this.)  But in industrial and post-industrial societies it does. He who can make the most weapons that are good enough and match to soldiers, wins, with limited exceptions.

Which is to say, while China does not have the military the US has, yet, it now has the potential to have a bigger, stronger one. More industry, more people.

Though people are becoming less important, which leads us to…

Technology

The technology of warfare and production are both changing. I am not convinced automation has reached the tipping point people make it out as having done, the industrial revolution did the same and was handled, but rising automation into sclerotic demand and an insistence of distributing money thru jobs is one of the factors driving the economic problems we already discussed.  The more capitalists think they don’t need workers, combined with refusing to do something akin to a basic income or employ less people for more money or radically decrease the work week without decreasing wages, the greater the problem.

The change in warfare is more interesting, and deeply problematic. As many people have observed, Orwell among them, violent technology underwrites constitutions. Mass armies full of riflemen, where women must work in the factories lead very directly first male then universal sufferage. Ancient Greek City states and Swiss cantons enfranchised exactly the fighting population.

Iraq saw the rise of area denial warfare, where the state could not be defeated on the field, but could not rule.  Now we are moving to a world of drones and autonomous robots.  People will be less and less needed to fight wars.  This is not a good thing, but—

—drone and autonomous robot technology is not necessarily a tech for the powerful. In fact, I suspect this is a technology of the weak. They aren’t that hard to make and will become increasingly easier to make. Any idiot who wants to make them will eventually be able to do so.

So you wind up either with police states (which we are moving towards, with our extreme surveillance societies) or societies where anyone can be killed.  There is no way most leaders can be defended, it cannot be done.

I will not cry for this.  The ridiculous ramparts in world capitals, which did not exist 60 years ago, exist exactly because politicians no longer work for their populations.  Ages of assassination also tend to be ages where the population is better taken care of, because the best way to keep someone from committing political violence is to keep them happy. A man who is happily married, who is relatively equal, who looks forward to his life and feels he can do things that are meaningful does not build drones in his basement.

Happy people who are in loving relationships and/or enmeshed in supportive communities may commit horrific communal violence, but they don’t tend to become terrorists.

However, the point is that the tech will become more and more available, and another age of terror and assassination will arise in its wake. To avoid that we will have reorganize our societies: we can do so either by making them surveillance police states or by making people happy.

Environmental

We are facing a triple or quadruple threat. Climate change, environmental collapse, population increase and water shortages. Severe water shortages.  These factors are going to make the crises much, much worse.  Whole regions of India, China and the US will stop being agriculturally productive, due to aquifer depletion, for example.  Swathes of land will become uninhabitable without air conditioning for months at a time. Changing rainfall patterns will make other, formerly productive land, unproductive.

Environmental collapse is harder to figure in, exactly, but as ecosystems collapse we can expect that to have unexpected and often catastrophic effects. Will the seas be taken over by jellyfish? What happens when all the alpha African predators are gone?  Will honeybees wind up extinct?  What happens to Japan when global fish stocks take their final swan dive (possibly recovering 25 years later)?

Meanwhile, while most developed countries have stable or declining populations, many developing countries have seen increases of a thousand percent or more, and will increase even further.  This is especially the case in Africa, large swathes of which will be hit hardest by climate change.

All of this means that we will be undergoing a cyclical change (collapsing hegemonic power, new technology of violence, new technology of production) at the same time as we are facing environmental catastrophe with an unprecedentedly large population.

The so-called refugee crisis right now is nothing compared to those coming. Populations in the tens of millions will move within periods of just a few years.  Countries which run out of water and thus ability to feed their population are very likely to go to war (if they don’t, their own populations will likely kill the leadership). Governments will collapse just based on environmental issues; wars will be fought over them, especially over water and arable land (this is one reason I am scared for Canada. When the US wants our water and land…)

Concluding Remarks

It is quite hard to predict history in the short term, where the short term means years, or even a decade or two.  It is very hard to predict history in the long term of centuries or millennia.  But between that it is quite easy. Each ideology, each empire, each economic system has a best by date. Some last longer than others, but all end, and they do so in fairly standard order.

We are near the end of an ideological order: neoliberalism. We are near the end of war-making technological era, with the rise of robots.  We are near the end of a production technological era, with the rise of AI and bots.

Combined with environmental catastrophe (and nukes), this makes what is coming down the line much worse than the normal cyclical change.  Much, much worse.  We can create a better world, or a few better societies, out of it, to be sure, but there is probably no avoiding the Age of War and Revolution which is soon to be upon us.


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June 1st US Covid Data

And so it goes. The riots, of course, will cause a spike as well.


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Policing the Police

GUEST POST by Webstir

In this time of police brutality, who can we depend upon to police the police? Who can we depend upon to police the prosecutors? The judges? Our lawmakers? You. That’s who. It’s your job. More than that, it’s your duty to your fellow man. And it’s not really even very difficult. All it takes is a little creative thinking.

Know this: If you’re protesting, you’re being surveilled. But to protest effectively, you must come to the protest organized. To do so requires that you surveil. To surveil effectively you must preserve your anonymity. If you don’t, anticipate a retaliatory response that will attempt to destroy your life. Or, even take it.

A smart first step is to hire a lawyer. The lawyer is your public face. They are ethically bound to preserve your anonymity so long as you aren’t using their services to commit a crime. But lawyers aren’t cheap. The way around this is to gather as many people you trust as you can and pool your resources. Send one of your pool to hire the lawyer and have them issue a Freedom of Information Act request to your local law enforcement agencies. Have them seek names, ranks, and badge numbers of every officer in the agency’s employ. Hell, if you’re enterprising, you can have the lawyer seek disciplinary records as well.

And remember, that same lawyer will also help save your bacon should you find yourself locked up – which you very well may.

Next, enrich the information you’ve gathered. Start plugging the names into public information web sites like Intellius, TruthFinder, Spokeo, or BeenVerified. These sites are a wealth of information. They will likely tell you email addresses, phone numbers, addresses, criminal histories, debts, relatives, and close associates. Other resources are county property record web sites and the Secretary of State web sites. If these require personal identification to access, use your lawyer. Take the data you found and then track down their social media profiles. Download the pictures of them from the social media sites in their civilian capacities and record any posts that appear useful.

Now it’s time to put the information you’ve gathered to use. Assemble a packet of each and every officer with a plain clothes face picture. Use your pooled resources to print hundreds of these packets and distribute them among your pool and among protestors. Make an electronic copy and distribute it to your associates online. Remember, you’re being surveilled. There are black hat cops among you and you’re going to want to be able to identify them. If someone is advocating violence and you don’t know him or her, check the list.

At the protest, use your information. Buy a bullhorn. When the cops get close, start calling them out by name. Tell them what you know about them. Tell them you know where they live. Tell them you know who their family members are. Tell them you know how much they’re in debt. Tell them about their latest post on Facebook.

The police rely on fear to control you. Being just a badge number instead of a human allows them to do that. Destroy their illusion of anonymity. Make them scared. Think about it. What would you do if a crowd of angry protestors were telling you they know everything about you down to your latest social media post? Me? I’d begin worrying about my family. I might also begin to think about a career change. Think too, about the likely response of the law enforcement agencies once they know all their information is out there. A likely response is to assign some of their resources to protect their dwellings and families. These are resources that aren’t hitting you upside the head with a baton or spraying mace in your eyes. That’s a win.

Also, take pictures of badge numbers when you find yourself in the thick of it. Once home, track them down on your database and distribute widely on social media. Tell the story of what you saw the officer do and post pictures and video of them if you have it. Tag them in the post. Let them know you’re watching their every move.

Finally, this tactic doesn’t have to be restricted to the police forces alone. Prosecutors and elected officials are often every bit as complicit as the cops themselves. Remember who is giving them the green light. Use the same tactics on them. Know your enemy. And remember, “[t]hose who make peaceful revolution impossible will make violent revolution inevitable.” Stay peaceful, but be prepared to fight power with power. Knowledge, is power. Exercising it is your duty. Go forth, and sow fear among your oppressors.


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May 31st US Covid Data

And the cases and deaths just keep piling up.


The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

Week-end Wrap – Political Economy – May 31, 2020

Week-end Wrap – Political Economy – May 31, 2020
by Tony Wikrent

Here’s video of the first person alleged to have taken a hammer to the AutoZone window, which activists immediately suspected was a provocation. Black gloves, black boots, black clothes (not unkempt like antifa, no offense), nice gas mask. Who is this guy? https://www.facebook.com/juan.conner.58/posts/137533351239840?hc_location=ufi …

Strategic Political Economy

General Electric Co. is turning out the lights on an iconic part of its business.
[Wall Street Journal, via Naked Capitalism Water Cooler 5-28-20]

Trump’s revival of American manufacturing….

“General Electric Co. is turning out the lights on an iconic part of its business. The company is getting out of making lightbulbs…. selling a unit that defined GE for nearly a century and was its last direct link to consumers. The company will sell its lighting business to Massachusetts-based Savant Systems Inc., a seller of home-automation technology in a transaction that values the unit at around $250 million…. That hardly makes the business a financial heavyweight, but the sale is the latest sign of the transformation of the American manufacturing landscape and a big marker in the changes at GE. The company has been selling off industrial units to pare down its debts, making GE smaller but also making it more reliant on an aviation unit that now faces tough prospects under the coronavirus pandemic.”

“What About the Rotten Culture of the Rich?”
Chris Arnade, American Compass, via Naked Capitalism Water Cooler 5-26-20]

“Why isn’t it considered bad behavior to sit in front of a wall of screens filled with flashing numbers making bets on those numbers? Would it attract the cultural scolds if the people making those bets where drinking tall boys in brown bags, rather than sipping bespoke lattes? Why isn’t it considered bad behavior to find a mid sized company, load it up with debt, strip it of its valuable assets, and send jobs overseas to the country with the lowest labor cost and least environmental regulations. All to make yourself rich, while leaving an economic hole in a Michigan town, or a New York town. A hole that sucks out hope, and eventually fills with despair and drugs…. The lesson is that cleverness trumps hard work. That a disregard for the rules trumps playing it straight. That you are a fool to put your head down every day, play by the rules, and focus on a job that values your community and your family. Why toil away at growing food, or building roads, or building bridges, when you can get rich quick by sitting in front of a wall of computers betting on flashing numbers? Why diligently work your way up the corporate ladder when you can smooth talk enough people into lending you enough money to take over the corporation, fire the board, leverage it up with debt, and then dismantle it while pocketing a few billion…. .I hope if we do talk about our broken culture, we talk about the destructive individualism of elites that has led to a selfishness that cares more about profits than the national or community good.”

Does China offer the world more than the US? Asia Times, via Naked Capitalism 5-26-20]

Summer Covid Prediction +May 30th US Covid Cases

Our benefactor writes:

My prediction is that we will have three million cases and 200 thousand deaths by late July or early August, with occasional spikes and local hot spots. It will become the new normal and will continue through the fall. There may be a spike, but not because of most of the big cities. NOLA has opened restaurants at 25 percent capacity, but that is a really tough arrangement. Most conventions and conferences will be and have already been cancelled through the end of the year. Las Vegas will remain at 25 percent capacity into 2021. This is the new 25 percent economy and a recipe for more unrest.


The results of the work I do, like this article, are free, but food isn’t, so if you value my work, please DONATE or SUBSCRIBE.

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