Category: Brian Browne

  • Sanders versus Clinton: The Bee and the Behemoth

    Sanders versus Clinton: The Bee and the Behemoth

    Nobility of cause is no surety for nobility of outcome.

    Victorious in the pivotal New York Democratic Party primary, Hillary Clinton is virtually assured the party nomination. Bernie Sanders tried arduously to snatch victory from Clinton in the state of his birth. He hoped his Brooklyn antecedents and New York’s reputation as a bastion of liberal politics would conspire to yield an upset. His supplication was tantamount to requesting a small miracle. Sanders might have been born in New York but Clinton’s ties were more recent and stronger. She had been one of its senators.

    Subsequent Clinton victories in Maryland, Delaware, Connecticut, and the important Pennsylvania primaries inched her even closer to the nomination. Narrow victories for Sanders in Indiana and tiny Rhode Island could do little to halt the inevitable.

    Sanders prayer apparently was muffled by the hum of the political establishment at work against him. Neither political upset nor miracle was to be had. Clinton steamrolled the Vermont senator, securing a win inNew York by a large-than-expected margin. The machine rolls on.

    Sanders fought and strained. In the end, the quixotic senator proved unequal to the leviathan. He was overcome. Ideals are wondrous glances into a better tomorrow. Yet in politics, organization and power usually take the day. The pen is mightier than the sword and gun until the first volley is fired.

    Fustigated by this loss, Sanders’ attempt at the party nomination now becomes a more desperate heave.  With his nomination now firmly resident in the house of make believe, Sanders must decide whether to surrender or brave forth when carrying on the fight means incurring the acute opprobrium of the party establishment; meanwhile, the effort will still result in the clear failure of his personal ambition to obtain the party nomination. However, there may be what appears to him a more transcendent reason to walk further into the den of personal setback and mainstream sanction.

    If Sanders has accomplished anything, it is has been to force Clinton to make the stand she abhors. His somewhat progressive ideas have caught fire with a significant amount of the party. To remain within calling distance of that wing, the mainstream Clinton has been forced to tack left, against her natural inclinations. The Clinton formula has always been to force the liberals to succumb to the tired nostrum that no other alternative existed; evil was the only thing for sale in the political market and the Clintons were the lesser evil of them all. Sanders altered the equation. For liberals, he was a positive good that represented a welcome change from the amoral ways of the Clinton political stock.

    The longer Sanders keeps to the race, particularly if he persists to the party convention, is the longer he will stall Clinton from her planned swing to the right. He may see utility in remaininga walking cadaver of a candidate until the convention so that he might exert some influence on the party platform. He will seek inclusion of progressive positions in that platform. These ideals will appeal to the poor and working class, the laborers, young people and the unions, that along with minority voters, form the electoral spine of the party.

    However, this scenario speaks caustic to Clinton’s appetite. She does not want to be pinned left or to be beholden to it to any degree. The mainstream is her home; this is by conscious design. That is where the money is. End of story.

    Try as he might to score something meaningful from his exertions, Sanders will likely but exchange one quixotic pursuit for another. Forgetting his personal ambitions to press Clinton to accept some of his progressive stances will be to no avail. She will say “yes” all the while resenting being placed in this leftward position, thus, all thewhile meaning”no.” To get the liberals to return to the fold, she will agreeto essentially anything short of excision of a vital organ.  At the operative time, she will renege and veer right. That is how the Clintons have always played; there is no reason to think they have voluntarily quit this game after it has given them such a successful run. The machine rolls on….until it breaks down.

    Despite his defeat, Sanders’ demonstration showed the political establishment to be vulnerable.  However, he started too late, had no grassroots organization and came from a state that was too small for him to overcome the advantages that Clinton had built. That he came from over 50 percent points behind to achieve near parity in the latest national poll speaks more to Clinton’s vulnerabilities and to the gravitational pull of progressive ideals during this high noon of economic inequality. Sanders was just the happy messenger and barely adequate campaigner. Had he cut a more charismatic figure, the race might be on still. Clinton might even be sunk.

    An assessment of how Democrats perceive the candidates on four key issues demonstrates why Hillary has consumed the Sanders mini-revolt even before the final inning. The 2009 Financial Crisis presents the great divide between Democrats of the Clinton/Wall Street variety and the party’s liberal/progressive elements. The Wall Street grouping believes Obama was right to solely bail out the banks and allow the people to fend for themselves. They laud the president for staving depression, claiming it was all that could be achieved given political realities. They believe as Obama and many mainstream economists have chirped that the economy is running just fine albeit most people are hurting.

    (I cannot fathom how supposedly liberal figures express comfort with an economy where the wealthy are suborned yet the bulk of the people remain put out. For them, aggregate statistics have primacy over the people’s welfare.  Man was built to serve the economy and not the economy to serve man. This is not progressive thought. If it is thought at all, it is one cast of intellectualized greed.)

    Progressives too applaud Obama for staving depression but lament he left the field with the game half finished.  To have rescued miscreant banks but not equally bolstering the public was to save the situation, but leave without material amendment the financial system that caused the grave danger.

    To Clinton’s chagrin, rank-and-file party membership would reach the same conclusion the progressives did. Amidst their smugness of position and myopia of thought, the party royalty had blinded itself to the signs of the time; they missed the stirrings of the progressives and of the masses. The Clinton machine was jolted by the fact that the progressives and working class have united on economic issues.

    The Clintons thought they had isolated the progressives, denuding them as a potent force within the party. Ironically, the economic unfairness, financial collapse and fear of morechurned by muddling Clintonian policies rescued progressivesfrom the political wilderness; those they sought to bury, the Clintons resuscitated by the  consequences of their warped economic policies.

    If this were the only matter on the table, Sanders might have eventually outflanked Clinton. However other considerations, coupled with Clinton allies’firm control of the party machinery, have given the overall contest to her.

    The people are more familiar with Hillary than with Sanders. Hers is an impressive resume. She touts her experience and ability to get things done. Yet, her resume is one more of position than of feat. We can name the numerous posts she has held; one is hard pressed to identify concrete achievement derived from her time in these postings. In her last official job — secretary of state — the policy that most bore her signature was in Libya. The strategy she championed turned a once stable country into convulsing disaster. The three presidents with resumes as full as Ms. Clinton’s were Herbert Hoover, James Buchananand Bush the First. A mild disappointment, Bush fared better as president than the other two. The earlier men became disappointment personified.

     

    Unable to grasp the dynamics of the Great Depression, Hoover initiated policies that worsened the hardship. Fearful of taking action that would offend north or south, Buchanan did what was politically expedient: he did nothing. Buchanan hid in the White House, watching fecklessly and doing nothing to halt the drift toward civil war. In both instances, the experienced hand fell paralytic upon encountering unexpected peril.

    It would take relative newcomers to national office, Lincoln and Roosevelt respectively, to dare what these vaunted men had not the courage to envision. Concerning the presidency, experience is a less reliable coin than fortitude and character. However, the sense that Clinton is better prepared has been proffered wholesale, whittling Sanders advantage on economic policy and typecasting him as a dangerous novice.

    Regarding substantive issues, Clinton and Sanders stand close on immigration, an important issue to the Latino community. However, Clinton has a slight edge in that community because she is better known than Sanders. Female Democrats over 40 overwhelmingly back Clinton. Younger adults, both men and women, tend toward Sanders but they also tend not to vote with the frequency of their older counterparts.

    Clinton’s lead over Sanders would evaporate if but for the vast support given by the Black community. Her impending nomination will be underwritten by the Black community. This is tragic; the Black voter doth himself a disfavor more severe than any advantage he could possibly attain from this act of blind loyalty. Cut by his own knife, his prayer for healing is nullified by his commission of self-injury.

    Part of Clinton’s claim to the nomination is that she gets things done. Under scrutiny, the claim acquires a hue more ominous than impressive. Reviewingher policies toward Blacks produces the nauseous feeling that she and her spouse have done more to Black people than for them.

    No tandem has done more harm to us in the past quarter century than the Clintons. As president, Bill Clinton cast drug trafficking in total blackface although knowing full well that Whites were more active traffickers and users per capita. In 1994, Clinton passed a crime bill purposefully tagging drugs more common to Black areas with stringent penalties. There was no empirical evidence to support this. A sinister Richard Nixoninitiated the war on drugs. He did so as a disguised attack on Black activism and the general Black male population. Ronald Reagan would advance this agenda.

    It would take Bill Clinton, publicly endorsed by Hillary, to perfect it. Clinton pursued this path knowing it would consign many Blacks to prison; he saw this as a small price to be paid to secure his position with the White electorate. This tact proved a cruel success. As if they were broken tools, millions of Black men were piled away in prison for nonviolent, small-time drug offenses while White offenders were frequently let off the hook. Black men got more punishment than was fairly due them only to suffer the further ignominy of having added to that punitive burden the punishment which should have been meted the white offender. The Black man was made the Jesus of the criminal justice process. He was to bear the punishment and sins of others that they might go free.

    Millions of men were rendered permanent denizens of an inescapable underclass. In this netherworld, jobs and often housing could not be found. Life on the margins is to be invisible to all except those who impose more punishment and more prison.

    As such, Clinton took a wrecking ball to the lives of millions of Black men, tearing apart families and communities in his effort to feed the racist idol that he believed demanded sacrifice to win elections.

    Painting poverty in blackface and depicting the poor as slothful cheats instead of unfortunate or even victims of society, Clinton eagerly curtailed unemployment relief and welfare assistance. He signed legislation approving predatory lending that soon targeted the Black and other minority communities. Practices once considered illegal loansharking and usury became legal. A great number of Blacks lives and homes would crash into bankruptcy and foreclosure under the weight of mounting debt when the financial system Clinton had reengineered collapsed years later.

    When Clinton moved into Harlem after his presidency, the event was hailed as evidence of his affinity for Black people. Sad when a people choose to see what they are told to believe instead of what lies before their eyes. Clinton did not come to sitin Harlem because of his admiration forBlack people. He did so as the vanguard of gentrification under the direction of his downtown financiers.

    He acted as the real estate equivalent of a Trojan horse. Adjacent to upper Manhattan, lower Harlem was choice realty. The problem was working class and poor black inhabited it. Clinton did not move to Harlem to enrich the community. He came to conquer it.  After Clinton arrived, gentrification that would begin to evict Blacks in lower Harlem as it was doing to Blacks in other American cities.That area was to be incorporated into upper Manhattan. Bye, bye black people in the process.

    Clinton did not confine his disdain for blacks to America’s shores. Believing the hundreds of thousands of lives that perished were not worth the effort, he twitched not an American finger but watched as Rwanda turned into a maelstrom of death. He forbade any UN intervention when such action could have saved legions. After the bloodletting, he would emit a stream of reptilian tears and false remorse.

    Haiti has been a favored target of Clinton racism. The Clintons have been in league with Citigroup. That institution has shoved its arm into the Haitian till for over a century. With the American military as its street muscle, Citigroup controlled the Haitian treasury when America occupied that island nation for roughly 20 years.

    The current idea is to turn Haiti in the rich man’s paradise Cuba had been prior to Castro ruining the good times. This means seizing a good portion of the island from its people. The Clintons have been among the prime architects of this confiscation. They helped manipulate elections to install those they and not the Haitian people. This year, the people rebelled, stalling a blatantly rigged process the American government backed because it would usher their puppet to the highest seat in the impoverished land. Working with their chosen marionettes, the Clintons and allied financiers have cleared thousands of people from their ancestral lands to make way for a resort and industrial parks that would be opened to favored businesses.

    During her time as secretary of state, Madame Clinton stomped her foot, basically pressing the client, captive Haitian president to veto a popular measure increasing the abysmal minimum wage. The people were not seeking largesse; they just wanted a wage slightly above that associated with serfdom. Clinton nixed the measure because she needed to suppress labor costs for American textile industries seeking to relocate in northern Haiti. In one swoop, she maintained the wage peonage of Haitian labor while promoting the unemployment of many Black textile workers in South Carolina and elsewhere. The firms moving to Haiti would close their factories in these American locales. That her friendscould save a dollar, Clinton gave Black workers the double slam. Yet, American Blacks would vote for her in the recent primaries as if she were of their own.

     

    In this, Hillary follows the lead of her leading man. Bill Clinton mastered the art of deceiving Black people at an early age. He knows we are easily led and even more easily fooled. Anyone raised in the southern United States is familiar with such a figure. Almost every small town had one: the white guy who spent his recreational time with Blacks.  Coming from a poor background of low social status, Clinton was outcast from his own. Yet, he was ambitious; he was not satisfied with becoming accepted. He wanted to rise to the top of the social structure that had forbade him.  Partly to compensate for this ostracism and to have more fun, Clinton and those like him would find solace in the Black community. Around Blacks, he could act and feel superior while also learning “cool.” Even the poorest, most outcast White had privileges no Black man possessed.

    This friendship with Blacks was more situational than sympathetic. Blacks were not equals but were useful pawns. Like most of White society, he believed the myths about Black social pathology. He needed to believe these because he had not cast aside the myths about poor Whites like himself. His goal was not to destroy those myths but to disassociate himself from them by climbing the social ladder.

    To be useful to the White community, he exploited his entrée into the Black community. Early on, he realized he could use his special knowledge to help the White power structure keep Blacks in their place. This would make him valuable to those who wanted to maintain racist boundaries without consciously seemingto do so. A subtle yet functional racism would replace its overt brother.

    Mostly, people like him grew up to become insurance or car salesmen. The more talented ones, would become a town’s mayor or the county sheriff. This time, one became governor and then president. Sadly, he would come to be viewed by Black people as a demi-savior. In fact, he is nothing more than a glossy sachet of biased myths and unresolved pathologies. We took as a hero a man who never liked us and who had given up on true heroism a long time ago.

    Faced with the choice between a smile masking sinister purpose or a frown accompanied by a fair deal, Blacks showed in the Democratic primaries their preference for fraudulent affection. Objectively, Clinton’s positions are not as beneficial as those of Sanders. Moreover, Clinton’s word is not a reliable barometer of her subsequent action. Her inherent conservatism on economic matters is such that ulta-right wing financier Charles Koch recently stated Clinton might be a better choice than her Republican rivals. If Koch’s interests would be served by Clinton, rest assured Black people’s  would not be. Koch and Blacks cannot be helped at the same time. Sad that we have indiscriminately chosen to continue a relationship with the Clintons of distorted intimacy without more fully exploring the merits of the dispassionate yet fairer partnership Sanders appears to have placed before us. The machine rolls on.

     

    08060340825 sms only

     

  • Sanders versus Clinton: The bee and the Behemoth

    Sanders versus Clinton: The bee and the Behemoth

    Nobility of cause is no surety for nobility of outcome.

    Victorious in the pivotal New York Democratic Party primary, Hillary Clinton is virtually assured the party nomination. Bernie Sanders tried arduously to snatch victory from Clinton in the state of his birth. He hoped his Brooklyn antecedents and New York’s reputation as a bastion of liberal politics would conspire to yield an upset. His supplication was tantamount to requesting a small miracle. Sanders might have been born in New York but Clinton’s ties were more recent and stronger. She had been one of its senators.

    Sanders prayer apparently was muffled by the hum of the political establishment at work against him. Neither political upset nor miracle was to be had. Clinton steamrolled the Vermont senator, securing a win inNew York by a large-than-expected margin. The machine rolls on.

    Sanders fought and strained. In the end, the quixotic senator proved unequal to the leviathan. He was overcome. Ideals are wondrous glances into a better tomorrow. Yet in politics, organization and power usually take the day. The pen is mightier than the sword and gun until the first volley is fired.

    Fustigated by this loss, Sanders’ attempt at the party nomination now becomes a more desperate heave.  With his nomination now firmly resident in the house of make believe, Sanders must decide whether to surrender or brave forth when carrying on the fight means incurring the acute opprobrium of the party establishment; meanwhile, the effort will still result in the clear failure of his personal ambition to obtain the party nomination. However, there may be what appears to him a more transcendent reason to walk further into the den of personal setback and mainstream sanction.

    If Sanders has accomplished anything, it is has been to make Clinton take the turn she abhors. His somewhat progressive ideas have caught fire with a significant amount of the party. To remain within calling distance of that wing, the mainstream Clinton has been forced to tack left, against her natural inclinations. The Clinton formula has always been to force the liberals to succumb to the tired nostrum that no other alternative existed; evil was the only thing for sale in the political market and the Clintons were the lesser evil of them all. Sanders altered the equation. For liberals, he was a positive good that represented a welcome change from the amoral ways of the Clinton political stock.

    The longer Sanders keeps to the race, particularly if he persists to the party convention, is the longer he will stall Clinton from her planned swing to the right. He may see utility in remaininga walking cadaver of a candidate until the convention so that he might exert some influence on the party platform. He will seek inclusion of progressive positions in that platform. These ideals will appeal to the poor and working class, the laborers, young people and the unions, that along with minority voters, form the electoral spine of the party.

    However, this scenario speaks caustic to Clinton’s appetite. She does not want to be pinned left or to be beholden to it to any degree. The mainstream is her home; this is by conscious design. That is where the money is. End of story.

    Try as he might to score something meaningful from his exertions, Sanders will likely but exchange one quixotic pursuit for another. Forgetting his personal ambitions to press Clinton to accept some of his progressive stances will be to no avail. She will say “yes” all the while resenting being placed in this leftward position, thus, all thewhile meaning”no.” To get the liberals to return to the fold, she will agree to essentially anything short of excision of a vital organ.  At the operative time, she will renege and veer right. That is how the Clintons have always played; there is no reason to think they have voluntarily quit this game after it has given them such a successful run. The machine rolls on….until it breaks down.

    Despite his defeat, Sanders’ demonstration showed the political establishment to be vulnerable.  However, he started too late, had no grassroots organization and came from a state that was too small for him to overcome the advantages that Clinton had built. That he came from over 50 percent points behind to achieve near parity in the latest national poll speaks more to Clinton’s vulnerabilities and to the gravitational pull of progressive ideals during this high noon of economic inequality. Sanders was just the happy messenger and barely adequate campaigner. Had he cut a more charismatic figure, the race might be on still. Clinton might even be sunk.

    An assessment of how Democrats perceive the candidates on four key issues demonstrates why Hillary has consumed the Sanders mini-revolt even before the final inning. The 2009 Financial Crisis presents the great divide between Democrats of the Clinton/Wall Street variety and the party’s liberal/progressive elements. The Wall Street grouping believes Obama was right to solely bail out the banks and allow the people to fend for themselves. They laud the president for staving depression, claiming it was all that could be achieved given political realities. They believe as Obama and many mainstream economists have chirped that the economy is running just fine albeit most people are hurting.

    (I cannot fathom how supposedly liberal figures express comfort with an economy where the wealthy are suborned yet the bulk of the people remain put out. For them, aggregate statistics have primacy over the people’s welfare.  Man was built to serve the economy and not the economy to serve man. This is not progressive thought. If it is thought at all, it is one cast of intellectualized greed.)

    Progressives too applaud Obama for staving depression but lament he left the field with the game half finished.  To have rescued miscreant banks but not equally bolstering the public was to save the situation, but leave without material amendment the financial system that caused the grave danger.

    To Clinton’s chagrin, rank-and-file party membership would reach the same conclusion the progressives did. Amidst their smugness of position and myopia of thought, the party royalty had blinded itself to the signs of the time; they missed the stirrings of the progressives and of the masses. The Clinton machine was jolted by the fact that the progressives and working class have united on economic issues.

    The Clintons thought they had isolated the progressives, denuding them as a potent force within the party. Ironically, the economic unfairness, financial collapse and fear of morechurned by muddling Clintonian policies rescued progressives from the political wilderness; those they sought to bury, the Clintons resuscitated by the  consequences of their warped economic policies.

    If this were the only matter on the table, Sanders might have eventually outflanked Clinton. However other considerations, coupled with Clinton allies’firm control of the party machinery, have given the overall contest to her.

    The people are more familiar with Hillary than with Sanders. Hers is an impressive resume. She touts her experience and ability to get things done. Yet, her resume is one more of position than of feat. We can name the numerous posts she has held; one is hard pressed to identify concrete achievement derived from her time in these postings. In her last official job — secretary of state — the policy that most bore her signature was in Libya. The strategy she championed turned a once stable country into convulsing disaster. The three presidents with resumes as full as Ms. Clinton’s were Herbert Hoover, James Buchanan and Bush the First. A mild disappointment, Bush fared better as president than the other two. The earlier men became disappointment personified.

    Unable to grasp the dynamics of the Great Depression, Hoover initiated policies that worsened the hardship. Fearful of taking action that would offend north or south, Buchanan did what was politically expedient: he did nothing. Buchanan hid in the White House, watching fecklessly and doing nothing to halt the drift toward civil war. In both instances, the experienced hand fell paralytic upon encountering unexpected peril.

    It would take relative newcomers to national office, Lincoln and Roosevelt respectively, to dare what these vaunted men had not the courage to envision. Concerning the presidency, experience is a less reliable coin than fortitude and character. However, the sense that Clinton is better prepared has been proffered wholesale, whittling Sanders advantage on economic policy and typecasting him as a dangerous novice.

    Regarding substantive issues, Clinton and Sanders stand close on immigration, an important issue to the Latino community. However, Clinton has a slight edge in that community because she is better known than Sanders. Female Democrats over 40 overwhelmingly back Clinton. Younger adults, both men and women, tend toward Sanders but they also tend not to vote with the frequency of their older counterparts.

    Clinton’s lead over Sanders would evaporate if but for the vast support given by the Black community. Her impending nomination will be underwritten by the Black community. This is tragic; the Black voter doth himself a disfavor more severe than any advantage he could possibly attain from this act of blind loyalty. Cut by his own knife, his prayer for healing is nullified by his commission of self-injury.

    Part of Clinton’s claim to the nomination is that she gets things done. Under scrutiny, the claim acquires a hue more ominous than impressive. Reviewingher policies toward Blacks produces the nauseous feeling that she and her spouse have done more to Black people than for them.

    No tandem has done more harm to us in the past quarter century than the Clintons. As president, Bill Clinton cast drug trafficking in total blackface although knowing full well that Whites were more active traffickers and users per capita. In 1994, Clinton passed a crime bill purposefully tagging drugs more common to Black areas with stringent penalties. There was no empirical evidence to support this. A sinister Richard Nixoninitiated the war on drugs. He did so as a disguised attack on Black activism and the general Black male population. Ronald Reagan would advance this agenda.

    It would take Bill Clinton, publicly endorsed by Hillary, to perfect it. Clinton pursued this path knowing it would consign many Blacks to prison; he saw this as a small price to be paid to secure his position with the White electorate. This tact proved a cruel success. As if they were broken tools, millions of Black men were piled away in prison for nonviolent, small-time drug offenses while White offenders were frequently let off the hook. Black men got more punishment than was fairly due them only to suffer the further ignominy of having added to that punitive burden the punishment which should have been meted the white offender. The Black man was made the Jesus of the criminal justice process. He was to bear the punishment and sins of others that they might go free.

    Millions of men were rendered permanent denizens of an inescapable underclass. In this netherworld, jobs and often housing could not be found. Life on the margins is to be invisible to all except those who impose more punishment and more prison.

    As such, Clinton took a wrecking ball to the lives of millions of Black men, tearing apart families and communities in his effort to feed the racist idol that he believed demanded sacrifice to win elections.

    Painting poverty in blackface and depicting the poor as slothful cheats instead of unfortunate or even victims of society, Clinton eagerly curtailed unemployment relief and welfare assistance. He signed legislation approving predatory lending that soon targeted the Black and other minority communities. Practices once considered illegal loansharking and usury became legal. A great number of Blacks lives and homes would crash into bankruptcy and foreclosure under the weight of mounting debt when the financial system Clinton had reengineered collapsed years later.

    When Clinton moved into Harlem after his presidency, the event was hailed as evidence of his affinity for Black people. Sad when a people choose to see what they are told to believe instead of what lies before their eyes. Clinton did not come to sitin Harlem because of his admiration forBlack people. He did so as the vanguard of gentrification under the direction of his downtown financiers.

    He acted as the real estate equivalent of a Trojan horse. Adjacent to upper Manhattan, lower Harlem was choice realty. The problem was working class and poor black inhabited it. Clinton did not move to Harlem to enrich the community. He came to conquer it.  After Clinton arrived, gentrification that would begin to evict Blacks in lower Harlem as it was doing to Blacks in other American cities.That area was to be incorporated into upper Manhattan. Bye, bye black people in the process.

    Clinton did not confine his disdain for blacks to America’s shores. Believing the hundreds of thousands of lives that perished were not worth the effort, he twitched not an American finger but watched as Rwanda turned into a maelstrom of death. He forbade any UN intervention when such action could have saved legions. After the bloodletting, he would emit a stream of reptilian tears and false remorse.

    Haiti has been a favored target of Clinton racism. The Clintons have been in league with Citigroup. That institution has shoved its arm into the Haitian till for over a century. With the American military as its street muscle, Citigroup controlled the Haitian treasury when America occupied that island nation for roughly 20 years.

    The current idea is to turn Haiti in the rich man’s paradise Cuba had been prior to Castro ruining the good times. This means seizing a good portion of the island from its people. The Clintons have been among the prime architects of this confiscation. They helped manipulate elections to install those they and not the Haitian people. This year, the people rebelled, stalling a blatantly rigged process the American government backed because it would usher their puppet to the highest seat in the impoverished land. Working with their chosen marionettes, the Clintons and allied financiers have cleared thousands of people from their ancestral lands to make way for a resort and industrial parks that would be opened to favored businesses.

    During her time as secretary of state, Madame Clinton stomped her foot, basically pressing the client, captive Haitian president to veto a popular measure increasing the abysmal minimum wage. The people were not seeking largesse; they just wanted a wage slightly above that associated with serfdom. Clinton nixed the measure because she needed to suppress labor costs for American textile industries seeking to relocate in northern Haiti. In one swoop, she maintained the wage peonage of Haitian labor while promoting the unemployment of many Black textile workers in South Carolina and elsewhere. The firms moving to Haiti would close their factories in these American locales. That her friendscould save a dollar, Clinton gave Black workers the double slam. Yet, American Blacks would vote for her in the recent primaries as if she were of their own.

    In this, Hillary follows the lead of her leading man. Bill Clinton mastered the art of deceiving Black people at an early age. He knows we are easily led and even more easily fooled. Anyone raised in the southern United States is familiar with such a figure. Almost every small town had one: the white guy who spent his recreational time with Blacks.  Coming from a poor background of low social status, Clinton was outcast from his own. Yet, he was ambitious; he was not satisfied with becoming accepted. He wanted to rise to the top of the social structure that had forbade him.  Partly to compensate for this ostracism and to have more fun, Clinton and those like him would find solace in the Black community. Around Blacks, he could act and feel superior while also learning “cool.” Even the poorest, most outcast White had privileges no Black man possessed.

    This friendship with Blacks was more situational than sympathetic. Blacks were not equals but were useful pawns. Like most of White society, he believed the myths about Black social pathology. He needed to believe these because he had not cast aside the myths about poor Whites like himself. His goal was not to destroy those myths but to disassociate himself from them by climbing the social ladder.

    To be useful to the White community, he exploited his entrée into the Black community. Early on, he realized he could use his special knowledge to help the White power structure keep Blacks in their place. This would make him valuable to those who wanted to maintain racist boundaries without consciouslyseemingto do so. A subtle yet functional racism would replace its overt brother.

    Mostly, people like him grew up to become insurance or car salesmen. The more talented ones, would become a town’s mayor or the county sheriff. This time, one became governor and then president. Sadly, he would come to be viewed by Black people as a demi-savior. In fact, he is nothing more than a glossy sachet of biased myths and unresolved pathologies. We took as a hero a man who never liked us and who had given up on true heroism a long time ago.

    Faced with the choice between a smile masking sinister purpose or a frown accompanied by a fair deal, Blacks showed in the Democratic primaries their preference for fraudulent affection. Objectively, Clinton’s positions are not as beneficial as those of Sanders. Moreover, Clinton’s word is not a reliable barometer of her subsequent action. It is sad that we have indiscriminately chosen to continue a relationship with the Clintons of distorted intimacy without more fully exploring the merits of the dispassionate yet fairer partnership Sanders placed before us. The machine rolls on.

     

    08060340825 sms only

     

  • Obama to Clinton: Change that is not and shall never be

    Obama to Clinton: Change that is not and shall never be

    That Secretary Clinton holds the inside track to Democratic Party nomination reveals an obvious, yet largely unspoken, incompleteness concerning President Obama: he failed to rewrite the Democratic Party in a better image than he inherited. The party leadership is largely as it was when he was first elected, save the party and its incremental approach to big issues are eight years olderbut with significantly less than eight years of progress to show for the passage of time. Instead of authoring a new way, Obama borrowed the Clinton machinery, mode of governance, miniature policy objectives.

    The Clinton way is basically a cynic’s avenue. Politics takes primacy over governance. Winning elections means more than winsome policy.

    Obama owns the unique distinction of being America’s first Black president. No one can confiscate that from him. His place in history is assured not so much by what he accomplished as president but in that he managed to surmount the wall of prejudice to take hold of the position. In his estimation, this feat may account as sufficient miracle-making for the life of one mortal man. Consequently, all that comes after is a rear guard strategy intended not to produce victory but avert defeat.

    History will not remember Obama as forging a new direction for the Democratic Party during a time of uncertainty and flux in the land. Instead, he will be seen as a bailiff of the party and of the presidency for the true owners — the Clinton household. This modest end was not foretold when Obama sought the presidency in 2008. That year, he snatched the prize from Hillary Clinton. Eight years later, he makes way for her. In conventional politics, there is neither enduring love nor loathing. There is but fleeting chance and transient opportunity.

    Obama was helped to the Democratic Party nomination by many whose primary mission was not to anoint a Black man but to derail an imminent Clintonian domination of the party. In 2008, Obama’s most important symbolic backer within the party was Senator Edward Kennedy. Kennedy detested what the Clintons had done to the party he so loved.

    Given his unabashed ambition to win elections, Bill Clinton consciously took a wrecking ball to the party’s liberal matrix, moving the party to the right and transforming it into something largely indistinguishable from the narrowing moderate wing of the Republican Party. That Clinton would accomplish this desecration by casting his deeds in the memory of President Jack Kennedy rankled the veteran senator even more. Clinton would frequently evoke the names of the older Kennedy and even President Roosevelt, the most revered president to liberal America.

    However, Clinton would pattern himself after conservative Ronald Reagan, accepting as political fact the bigotry that suckled Reagan’s electoral victories. Clinton would never try to defeat that bigotry. He would merely attempt to coax a segment of it to his side. For him a racist vote was as welcomed as any other. To win elections, the oily Clinton would indirectly yet effectively cater to almost every negative racial myths about Blacks uttered during the past fifty years. Like the Republicans he mimicked, Clinton would label Black people as prone to violent almost feral criminality, indolence and an innate social dysfunction that kept us from developing stable families and communities.

    Clinton would discount the interplay of racism and poverty as compound assaults hurting the Black community. Shamelessly, he would then move to appease an easily-duped Black community by giving a few token appointments to some Blacks who were more wedded to self-ambition than collective betterment. He wouldperiodically visit the community where he would spend some time singing and dancing with the people, invoking the names of our dead heroes whilepositing that he was our sole protection from a racist backlash of indeterminate proportion and strength.

    He convinced us that he and he alone stood between us and the boogeyman. What he shied from mentioning was that he could manage this seemingly dangerous pose because he was the boogeyman’s blood brother and accomplice. We came to celebrate this man based on the minute distinction that he kicked us with a smile while his Republican brethren maintained a stern face because their bigotry was honest enough not to see humor in the grim injustice they wrought.

    While not devoid of his own racial misperceptions, the old liberal firebrand Kennedy did not truckle to outright bigotry as did Bill Clinton. Given his myriad differences with Clinton, Senator Kennedy sought to rescue the party and the family name from the hands of this opportunistic rival. However, the years had stolen much from the Massachusetts lawmaker. His health waning and his once fiery oratory nearly extinguished, the senator was much too old, frail and flawed to stand as an alternative to a Clintonian revival. He needed a surrogate. Kennedy and other members of the liberal wing searched far and wide.  The eloquent and youthful Obama presented the best choice to disrupt the Clinton precession and restore the party’s liberal bearing. Obama was effectively to become a black Kennedy.

    With such backing, Obama bested Hillary Clinton in 2008; but he did not defeat the Clinton revival. Instead of destroying it, Obama joined the Clinton fold. In supporting Obama, Kennedy and his liberal allies perceived something in Obama that was not there. They made the same mistake most Democratic voters would make. Upon seeing Obama’s blackness, they presumed a liberal bent where there was none. They also thought they could direct his moves because he would be beholden to them.

    Bill Clinton’s former Treasury Secretary and Wall Street habitual Richard Rubin proved less color struck and thus a more astute judge of Obama’s true political nature. He was among Obama’s first important financial backers. He saw a conservatism in Obama to which Kennedy was blinded, a conservatism akin to that of Bill Clinton.

    Rubin discerned Obama could sell himself to the Kennedy wing of the party yet it would be easy for Rubin and others to ultimately pull him into the Clinton orbit. Rubin’s hunch wasprescient, revealing him to be a better political operative than an economist. Obama turned out to be more of his own man than the Kennedy crew thought but less his own man than he should have been. He freed himself from the Kennedy hold to tender himself into the Clinton grasp.

    As a candidate for the party nomination and then for the presidency, Obama would campaign as a Kennedy. He would govern as a Clinton. On the campaign trail, his rhetoric could be measured in terms of miles and furlongs. In office, his actions would be calculated in inches and millimeters. As a candidate, he talked of sweeping reform and change. Once in office, he was satisfied with tinkering at things around the edges. He became a gradualist’s gradualist. Instead of a man of seminal change and reform, Obama reduced himself to an artful imitator of Clintonian politics; he would talk unguent words to the average man but work for Money Power. Change would be limited to vocal expression that would not be allowed to infect actual deed.

    Both the Clintons and Obama had adopted the same political strategy. They saw themselves as morally superior to the wicked Republicans yet believed in many of the same issues, particularly regarding economic policy, that made the Republicans wicked; this logical dissonance allowed them to deceive themselves that they could adhere to the same policies the conservatives support yet somehow thing the outcome would be different simply because they were kinder at heart than were the Republicans.  Such fanciful distinctions would be lost on the poor and working class who found it increasingly harder to differentiate between the two parties. The two parties would seem no more than different versions of the same song.

    Meanwhile, the Clinton and Obama group would disregard the progressive wing of the party as naïve ideologues lost in the past or too far ahead in the future. As compared to these progressives, the Clinton Obama group saw themselves as pragmatists who got things done. Whether what was done was right or effective was not the point. Going through the process was more important than the quality of the outcome.

    Moreover, they calculated the progressives and liberals had no other home but the Democratic Party. Thus, they could treat the left wingers shabbily; the left wingers would still hang around for want of an alternative political refuge. The Clinton/Obama formula has been to take the Republicans at their own game then force the liberals in the Democratic Party to gulp down the caustic potion. Compromise for compromise sake is the club motto. Water down everything even that which hadpreviously beenwatered down. Water things down until the liberal and progressive urge in whatever proposed measure is diluted beyond recognition.

    In this way, the dashing knight of change, Obama, reduced himself to a drab courtier of the status quo. For his top staff selections, Obama surrounded himself with so many Clinton subordinates that the former president would have been quite at home chairing an Obama cabinet session. Strangely, Obama and the Clintons disliked each other but each realized they needed the other to realize their dreams. Obama wanted reelection and the Clintons wanted a return to the White House immediately after Obama left it.

    In 2012, Obama was in hot water and facing a tight race. His lukewarm policies had failed to appease conservatives and but had sap the verve from much of his liberal support. A nervous Obama reached out for even more help from the Clintons. Bill Clinton delivered.He helped stop Obama’s hemorrhaging among White voters. Clinton was instrumental in Obama’s reelection. That reelection would thus come hinged with costs.

    Bill Clinton is many things but an altruist is not among them. His contributions came with a price. Obama would have to side with Hillary if she ran in 2016. The bargain seemed good at the time; Obama needed immediate aid while repayment seemed distant and uncertain at the time. Hillary might not run. Four years has passed. 2016 is here. Hillary is running. Obama must redeem his obligation.

    With Obama completing his tenure, the latent fissures between Clinton’s Wall Street wing and the liberal wing of the Democratic Party are exposed. Because of his unique place as the first Black president, Obama was able to paper over but not resolve the differences between the two camps. Few Democrats had the dexterity to confront the first Black president on his failings without running into adverse political currents. Fewer had the courage.  Democrats held their peace. Clintonites did not care much for Obama personally but he hewed their water regarding policy. The liberals were awed and warmed by his soaring oratory but were left in the cold by his middling policies.

    In the Clinton universe, Obama went from unwanted usurper to becoming their caretaker regent. Hillary Clinton personifies a full restoration of a mode of governance more in keeping with moderate Republicanism than traditional liberal Democratic politics. The major differences between the Clintons and the Republicans are on social policies such as gay marriage, abortion and gun control. Variance over immigration is the major difference the Clintons have with Republicans on a matter hinging on economic or foreign policy. Regarding the rest of economic and national security issues, the Clintons and the Republicans chorus from the same hymnal.

    The slight difference is that Republicans sing of austerity and world dominion with relish whereas the Clintons pretend to be coerced into embracing quasi-Republican policies by some inexorable political reality that everywhere exists but is neitherfully articulated nor attempted to overcome. Like most bigoted people, the Clintons suffer an illogical phobia. They appear to be afraid of the ghosts and goblins of their own making. They want us to be likewise frightened.

    Against this backdrop, Bernie Sanders represents an attempt to the win back what liberals thought had been gained with Obama. That a relatively unknown senator from the tiny, semi-cloistered state of Vermont could mount a spirited challenge for the party nomination says two things. First, a good many rank-and-file Democrats remain faithful to the liberal and progressive tenets that have defined the party since the 1930s New Deal.  Second, Hillary Clinton is a vulnerable, flawed candidate.

    Partly her vulnerability is attributed to sexism. Some voters will never vote for a woman. Such misogyny is wrong in the extreme. Yet most of herweaknesses as a candidate emanate directly from a protean character that has nothing to do with her femininity. Her nearly infinite elasticity of opinion reveals a heart of cold ambition yet frayed, wavering principles.She holds no views except those calculated to do the least damage to her political career. She is faithful only to the prevailing wind because this is how she thinks she may ultimately prevail to become the party nominee and the next president.

    After eight years of the first Black president, the Democratic Party is poised to become the first of the two major parties to present a female presidential candidate. This handing of the baton should be a moment of celebration of long-awaited progress. Instead, this prospect elicits all of the joy of an outdoor party doused by a sudden downpour. People are more resigned to the fact of a Clintonian ascendance than elated by it. Despite the elaborate trappings of Obama handing the baton to the distaff Clinton, what we all discern is that the likely result will constitute nothing more than leaving the nation to run in place when the place that America is in is not nearly the place most Americans hoped to be.

     

    08060340825 sms only

  • Financialism revisited (Part three)

    Financialism revisited (Part three)

    The rich man believes in only his money. He worships neither God nor Devil as he is both unto himself. The poor man’s poverty is his only abundance.

    News regarding the global economy becomes more disconcerting with each week. Oil and other commodity prices remain low yet volatile. The Chinese economy remains sluggish, meaning its appetite for raw material will not recover the new future. Europe seems to have become atabernacle of no growth. Even the relatively healthy American economy is showing signs of future weakness.  Given these storm winds, a growing number of economic and financial experts predict of global recession. Some even warn of worse.

    Due primarily to the splashed oil and commodity prices, a degree of economic discomfort for most African nations is inevitable. Yet, the worst can be avoided provided right actions are taken. Economic orthodoxy has led us into the thicket. We would be wishful to a harmful extreme if we believed that it can extricate us from injury now caused. Radical but intelligent departure from standard economic practice is the clarion that must be answered.

    In the two prior submissions of this trilogy, we accosted two interrelated tenets of mainstream economics.  First, we sought to bury the venerable hobgoblin that government deficit spending is inherently bad. Second, we annulled the marriage between government deficit spending and debt. The two have no reason to be betrothed except to profit the financial class and detrude the rest of the economy.

    Now it is time to move from concepts and analysis into the realm of concrete policies that African nations should consider in order to avert the worse of the pursuing tempest.

    1. End the implicit peg to the dollar: I have written about this in prior articles, so I will not go into intricate detail. Most African nations are commodity exporters. These governments formulate their budgets in like manner. Commodity exports form the lion’s share of hard currency earnings, usually dollars. The nations then perform a simple exchange rate conversion. Using the official exchange rate extant at the time, they create a new amount of their national currency based on the amount of dollars received for their exports. This new amount of national currency becomes an artificial, self-imposed limitation on fiscal policy. The amount of foreign currency acquired through export earnings dictates the amount of new domestic money the government injects into the economy. In effect, the whims and wants of foreign consumers determine the fiscal policies of most African nations.

    There is no sound economic reason to perpetuate this brand of servitude. This custom should be trashed for it serves no purpose other than to undermine African fiscal independence. This practice is no less capricious than pegging government fiscal policy to how many stars one can sight in the evening sky on the third Monday of every month that has at least three different vowels in its name.

    Governments need not peg their fiscal expenditure to the amount of foreign currency earned. This is because the amount of foreign currency acquired has no logical nexus with to the determination of the levels of domestic currency the government should place into the system to optimize growth.

    It is a strange notion to believe that the amount of foreign currency earned which is a function of external demand for exports should determine how much money a government should spend for the economic betterment of its populace. The one goal is no way a function of the prior input.  Foreign demand and internal requirements do not readily translate into each other. This is the forced merger of two different sets of ideals and objectives that mean little if nothing to each other.  The only way this makes any sense if we are to believe the canard that all commercial and financial markets function perfectly and are at all times completely rational. We know this not to be true. The markets cannot be perfect because people are the market and people are imperfect. Thus, in as much as the markets are composites, they also are totems of compounded error upon error.

    Markets are not impersonal forces impervious to fear, emotion, inconsistency and mistake. If they were, the world would not be in the current tailspin. All past and future recessions would be impossible. Thus, it is futile to believe that a nation’s optimal fiscal expenditure is intrinsically linked to the amount of money foreigners believe they should pay for that nation’s exports. The foreigner mostly seeks the best deal or the lowest prices for your exports. His ability to command a lower price should not define a nation’s ability to provide the best fiscal policy for its people provided that fiscal policy can be underwritten by that nation’s sovereign currency.

    Thus, African governments must stop pegging their expenditures and their creation of new money to the amount of foreign currency they derive in any given period. Instead, governments should peg their fiscal policy to the amount of money they believe will produce the optimal level of broadly shared growth without giving rise to a harmful level of inflation.

    1. Have the courage of deficit spending: Government deficit spending is basic to economic growth. When governments runs deficits, the private sector runs a surplus. The obverse is true as well. Empirical evidence supports the utility of government spending. America has engaged in deficit spending roughly 70 percent of its existence. This practice has not seemed to deter that economy from becoming the world’s largest. The few instances the American government fashioned balanced or surplus budgets for more than three consecutive years, the nation marched into recession each and every time. So much for the mainstream textbooks and their exultations of fiscal reticence. Their wrong theology is set aside by way of empirical fact.

    No nation should engage in deficit spending for spending sake. This spending is a tool. As with any utensil, it must be properly used. During times when the private sector appears eviscerated, government deficits are needed to boost the private economy from recession’s pit. However, expenditure must not be toward frivolity; this will worsen the already bad state of affairs. Spending must be geared to projects that yield jobs as well as those that spark follow-on economic activity and consumption. If the deficit spending of one unit of currency produces more than that amount of new wealth, then the deficit spending benefits the nation and should be pursued with commitment and vigor in order to reduce the risks of economic contraction.

    1. Greater deficit but no greater debt: Deficit spending should not automatically be linked to new borrowing. Borrowing to fund the deficit should only be done as part of a conscious policy to increase bond yields or protect the valuation of financial assets. Otherwise, deficit spending should be simply by government creation of new money out of “thin air.”

    An interim arrangement between the current fiscal/monetary regime and the one above proposed is the creation of what I call “tax bonds.”  This concept is presented as a means of averting possible legislative or constitution impediments to government “money printing.” Also, this halfway measure might salve political opposition because it also functions as an excellent heuristic device that reveals the convolution of the current fiscal regime. These tax bonds would be instruments to be used in situations of insufficient money and revenue to meet the fiscal objectives a government should seek to accomplish.

    Tax bonds would be local currency-denominated instruments with a perpetual or indefinite maturity date. They would also be interest free. The tax bonds could be used to partially pay for services, contracts or work done for government by large companies. Recipient entities might hold the bonds to use them to pay taxes or for other government services or fees the recipient could incur.They also could be used to purchase other government-issued securities. They would also be redeemable on demand by the banking system but at a stated discount of their face value. Using these bonds to partially pay large contracts would free the more conventional forms of money to be used to pay smaller contractors, to fund social services and to help finance special projects.

    1. Begin to industrialize: The steep decline in commodity prices reteaches an age-old lesson. As to prosperity and an economy dependent on natural resource exportation, never the twain shall meet. A nation is better off manufacturing sturdy affordable cars or inexpensive machinist tools than in cultivating the perfect cassava or tomato. Currently, the only thing Africa manufactures in abundance are talented but undereducated and underutilized people. We must put this great mass to work, particularly given the rapid urbanization of the continent’s population.

    As currently structured, the private sector is too weak and imbalanced to spark manufacturing on its own. It needs government assistance. Most countries could do with a national industrial policy that encourages the development of strategic industries which lie along the critical path to sustained growth and employment.

    Modern Industry is based on credit. However, interest rates are too high for a borrowing manufacturer to be competitive.We need to experiment with interest rates. For industrial sectors designated as strategic by the government’s industrial plan, interest rates must be lowered. Banks must be legislated to devote a quota of loans to key enterprises at the lower rate.  These loans will be checked by a government auditing entity to ensure they are bona fide.Banks will be given tax breaks, preferences in transacting government business and other incentives to make these manufacturing loans.

    Government must also institute a package of tax credit, subsidies and protection from imports for critical sectors.

    While we must increase our manufacturing sectors, we must be careful as to the aim of this policy. In the past, nations adhered to export-dominated models. While exports will be important, we must be careful not to place too much faith in this tried way.These models proved successful, in part, because of the global economic environment of the times. Our environment is different.  Both the western and eastern economies now place greater emphasis on manufacturing and export-driven growth. Everyone cannot have an export surplus. Some nations will lose because too many already follow this approach. We must limit the number of African nations among them that fail.

    Our major aim at this stage should be to nurture domestic demand and intra-regional as well as intra-continental trade through ECOWAS and other institutional mechanisms.

    1. Help the farmer: In many nations, land ownership and tenure are based on antiquated systems. African governments need to urgently embark on radical land reform converting much of the land now in productive use into forms of private ownership more amenable to being collateralized in the stream of regular banking and credit transactions.

    This is especially true for farmers. Clearer title and unambiguous private ownership of land will allow them to use the property as collateral for credit to purchase items and implements that enhance their yields and productivity.

    Agricultural mortgage loan corporations should be established in many nations. In some instances, the entity will directly loan to farmers. Its main objective will be to create a secondary market for farm mortgages. The corporation will buy from lending banks those mortgages that conform to certain underwriting criteria such as loaned funds can only be used for farming-related expenditures.The underwriting requirements will ensure that the loans are not unfair bargains imposed by banks upon unwitting farmers. On the other hand, by selling the mortgages to the loan corporation the banks shall profit, increase their liquidity and thus giving them the incentive to make more loans.The loan corporation may securitize the loans, reselling individual loans or these farmland securities to investors. Government could partially guarantee the resales.A similar evolution should take place with residential and commercial real estate.

    In addition, governments should consider establishing commodity boards ensuringminimum prices for certain crops. Improved warehousing systems will add food security and lower prices while improving farm incomes. Farmers will receive warehouse scrip or tickets for their products. They can use these to borrow money in the short-term as well.

    1. Develop sub-national development and regional banks: To alleviate the financial crunch on subnational political units such as states in Nigeria as well as to promote infrastructure and integration at the regional level, publicly-owned and operated regional development banks should be established.

    Equity capital for such banks would come from the participating states and the federal government.

    The banks would lend primarily to the states, individually or in concert with other member states.  The loans would only be for infrastructural projects, particularly power generation, mass transport and water.To be eligible for loans, states must deposit a certain percentage of its funds with the bank.This mechanism will enhance the funds at the disposal of the states. This is because the banks, like a private bank, would have the charter to issue new currency for all projects deemed creditworthy. The banks must be subjected to strict auditing and underwriting requirements to minimize the negative effect of political influence in banking decisions and operations.

    These are just a few ideas to bruit in the search for a more just and prosperous global economy. Opposition to these ideas is strong and as old as it is strong. The mainstream advocates that governments either cut expenses or impose more severe taxation. Thisfalse cure is but a species of true austerity.  In robbing the private sector to pay the public, greater taxation is an invitation for recession to become a permanent fixture in the national architecture.

    Given the present difficulties, most nations require net increases in the amount of money in the political economy.  The new funds need to be allocated in the best possible ways to provide employment, spark infrastructural development, increase farm and industrial output while making the financial sector more amenable to helping the real sector move toward fuller employment.

    As I conclude, I again leave you with an excerpt from Financialism: Water From An Empty Well:

    This book is not about politics nor is it about economics. It is about the confluence where politics and economics meld to become each the other… It is about complex thought and about behavior and fact of even greater complexity. It is as much about the inhumane behavior of facts as it is about the facts of human behavior.  It is about how thought can go awry. Yet, the more an idea goes awry, the more it and its adherents insist on its validity. This gives an account of that class of people who make and multiple money for the sake of it. It points out those who have staked the well-being of the greater portion of us on unnecessary wagers placed with the whimsical gods of high finance. In the end, this book is for those who seek to build a political economy based on an equitable creation of wealth so that all may have a better run at a better future.”

    With this article and its earlier companions, my hope is to have added to our discourse on how to claim the prosperity that Providence intends for us all. Thank you.

    08060340825 sms only

  • Financialism revisited (Part three)

    Financialism revisited (Part three)

    The rich man believes in only his money. He worships neither God nor Devil as he is both unto himself. The poor man’s poverty is his only abundance.The rich man believes in only his money. He worships neither God nor Devil as he is both unto himself. The poor man’s poverty is his only abundance.

    News regarding the global economy becomes more disconcerting with each week. Oil and other commodity prices remain low yet volatile. The Chinese economy remains sluggish, meaning its appetite for raw material will not recover the new future. Europe seems to have become atabernacle of no growth. Even the relatively healthy American economy is showing signs of future weakness.  Given these storm winds, a growing number of economic and financial experts predict of global recession. Some even warn of worse.

    Due primarily to the splashed oil and commodity prices, a degree of economic discomfort for most African nations is inevitable. Yet, the worst can be avoided provided right actions are taken. Economic orthodoxy has led us into the thicket. We would be wishful to a harmful extreme if we believed that it can extricate us from injury now caused. Radical but intelligent departure from standard economic practice is the clarion that must be answered.

    In the two prior submissions of this trilogy, we accosted two interrelated tenets of mainstream economics.  First, we sought to bury the venerable hobgoblin that government deficit spending is inherently bad. Second, we annulled the marriage between government deficit spending and debt. The two have no reason to be betrothed except to profit the financial class and detrude the rest of the economy.

    Now it is time to move from concepts and analysis into the realm of concrete policies that African nations should consider in order to avert the worse of the pursuing tempest.

    1. End the implicit peg to the dollar: I have written about this in prior articles, so I will not go into intricate detail. Most African nations are commodity exporters. These governments formulate their budgets in like manner. Commodity exports form the lion’s share of hard currency earnings, usually dollars. The nations then perform a simple exchange rate conversion. Using the official exchange rate extant at the time, they create a new amount of their national currency based on the amount of dollars received for their exports. This new amount of national currency becomes an artificial, self-imposed limitation on fiscal policy. The amount of foreign currency acquired through export earnings dictates the amount of new domestic money the government injects into the economy. In effect, the whims and wants of foreign consumers determine the fiscal policies of most African nations.

    There is no sound economic reason to perpetuate this brand of servitude. This custom should be trashed for it serves no purpose other than to undermine African fiscal independence. This practice is no less capricious than pegging government fiscal policy to how many stars one can sight in the evening sky on the third Monday of every month that has at least three different vowels in its name.

    Governments need not peg their fiscal expenditure to the amount of foreign currency earned. This is because the amount of foreign currency acquired has no logical nexus with to the determination of the levels of domestic currency the government should place into the system to optimize growth.

    It is a strange notion to believe that the amount of foreign currency earned which is a function of external demand for exports should determine how much money a government should spend for the economic betterment of its populace. The one goal is no way a function of the prior input.  Foreign demand and internal requirements do not readily translate into each other. This is the forced merger of two different sets of ideals and objectives that mean little if nothing to each other.  The only way this makes any sense if we are to believe the canard that all commercial and financial markets function perfectly and are at all times completely rational. We know this not to be true. The markets cannot be perfect because people are the market and people are imperfect. Thus, in as much as the markets are composites, they also are totems of compounded error upon error.

    Markets are not impersonal forces impervious to fear, emotion, inconsistency and mistake. If they were, the world would not be in the current tailspin. All past and future recessions would be impossible. Thus, it is futile to believe that a nation’s optimal fiscal expenditure is intrinsically linked to the amount of money foreigners believe they should pay for that nation’s exports. The foreigner mostly seeks the best deal or the lowest prices for your exports. His ability to command a lower price should not define a nation’s ability to provide the best fiscal policy for its people provided that fiscal policy can be underwritten by that nation’s sovereign currency.

    Thus, African governments must stop pegging their expenditures and their creation of new money to the amount of foreign currency they derive in any given period. Instead, governments should peg their fiscal policy to the amount of money they believe will produce the optimal level of broadly shared growth without giving rise to a harmful level of inflation.

    1. Have the courage of deficit spending: Government deficit spending is basic to economic growth. When governments runs deficits, the private sector runs a surplus. The obverse is true as well. Empirical evidence supports the utility of government spending. America has engaged in deficit spending roughly 70 percent of its existence. This practice has not seemed to deter that economy from becoming the world’s largest. The few instances the American government fashioned balanced or surplus budgets for more than three consecutive years, the nation marched into recession each and every time. So much for the mainstream textbooks and their exultations of fiscal reticence. Their wrong theology is set aside by way of empirical fact.

    No nation should engage in deficit spending for spending sake. This spending is a tool. As with any utensil, it must be properly used. During times when the private sector appears eviscerated, government deficits are needed to boost the private economy from recession’s pit. However, expenditure must not be toward frivolity; this will worsen the already bad state of affairs. Spending must be geared to projects that yield jobs as well as those that spark follow-on economic activity and consumption. If the deficit spending of one unit of currency produces more than that amount of new wealth, then the deficit spending benefits the nation and should be pursued with commitment and vigor in order to reduce the risks of economic contraction.

    1. Greater deficit but no greater debt: Deficit spending should not automatically be linked to new borrowing. Borrowing to fund the deficit should only be done as part of a conscious policy to increase bond yields or protect the valuation of financial assets. Otherwise, deficit spending should be simply by government creation of new money out of “thin air.”

    An interim arrangement between the current fiscal/monetary regime and the one above proposed is the creation of what I call “tax bonds.”  This concept is presented as a means of averting possible legislative or constitution impediments to government “money printing.” Also, this halfway measure might salve political opposition because it also functions as an excellent heuristic device that reveals the convolution of the current fiscal regime. These tax bonds would be instruments to be used in situations of insufficient money and revenue to meet the fiscal objectives a government should seek to accomplish.

    Tax bonds would be local currency-denominated instruments with a perpetual or indefinite maturity date. They would also be interest free. The tax bonds could be used to partially pay for services, contracts or work done for government by large companies. Recipient entities might hold the bonds to use them to pay taxes or for other government services or fees the recipient could incur.They also could be used to purchase other government-issued securities. They would also be redeemable on demand by the banking system but at a stated discount of their face value. Using these bonds to partially pay large contracts would free the more conventional forms of money to be used to pay smaller contractors, to fund social services and to help finance special projects.

    1. Begin to industrialize: The steep decline in commodity prices reteaches an age-old lesson. As to prosperity and an economy dependent on natural resource exportation, never the twain shall meet. A nation is better off manufacturing sturdy affordable cars or inexpensive machinist tools than in cultivating the perfect cassava or tomato. Currently, the only thing Africa manufactures in abundance are talented but undereducated and underutilized people. We must put this great mass to work, particularly given the rapid urbanization of the continent’s population.

    As currently structured, the private sector is too weak and imbalanced to spark manufacturing on its own. It needs government assistance. Most countries could do with a national industrial policy that encourages the development of strategic industries which lie along the critical path to sustained growth and employment.

    Modern Industry is based on credit. However, interest rates are too high for a borrowing manufacturer to be competitive.We need to experiment with interest rates. For industrial sectors designated as strategic by the government’s industrial plan, interest rates must be lowered. Banks must be legislated to devote a quota of loans to key enterprises at the lower rate.  These loans will be checked by a government auditing entity to ensure they are bona fide.Banks will be given tax breaks, preferences in transacting government business and other incentives to make these manufacturing loans.

    Government must also institute a package of tax credit, subsidies and protection from imports for critical sectors.

    While we must increase our manufacturing sectors, we must be careful as to the aim of this policy. In the past, nations adhered to export-dominated models. While exports will be important, we must be careful not to place too much faith in this tried way.These models proved successful, in part, because of the global economic environment of the times. Our environment is different.  Both the western and eastern economies now place greater emphasis on manufacturing and export-driven growth. Everyone cannot have an export surplus. Some nations will lose because too many already follow this approach. We must limit the number of African nations among them that fail.

    Our major aim at this stage should be to nurture domestic demand and intra-regional as well as intra-continental trade through ECOWAS and other institutional mechanisms.

    1. Help the farmer: In many nations, land ownership and tenure are based on antiquated systems. African governments need to urgently embark on radical land reform converting much of the land now in productive use into forms of private ownership more amenable to being collateralized in the stream of regular banking and credit transactions.

    This is especially true for farmers. Clearer title and unambiguous private ownership of land will allow them to use the property as collateral for credit to purchase items and implements that enhance their yields and productivity.

    Agricultural mortgage loan corporations should be established in many nations. In some instances, the entity will directly loan to farmers. Its main objective will be to create a secondary market for farm mortgages. The corporation will buy from lending banks those mortgages that conform to certain underwriting criteria such as loaned funds can only be used for farming-related expenditures.The underwriting requirements will ensure that the loans are not unfair bargains imposed by banks upon unwitting farmers. On the other hand, by selling the mortgages to the loan corporation the banks shall profit, increase their liquidity and thus giving them the incentive to make more loans.The loan corporation may securitize the loans, reselling individual loans or these farmland securities to investors. Government could partially guarantee the resales.A similar evolution should take place with residential and commercial real estate.

    In addition, governments should consider establishing commodity boards ensuringminimum prices for certain crops. Improved warehousing systems will add food security and lower prices while improving farm incomes. Farmers will receive warehouse scrip or tickets for their products. They can use these to borrow money in the short-term as well.

    1. Develop sub-national development and regional banks: To alleviate the financial crunch on subnational political units such as states in Nigeria as well as to promote infrastructure and integration at the regional level, publicly-owned and operated regional development banks should be established.

    Equity capital for such banks would come from the participating states and the federal government.

    The banks would lend primarily to the states, individually or in concert with other member states.  The loans would only be for infrastructural projects, particularly power generation, mass transport and water.To be eligible for loans, states must deposit a certain percentage of its funds with the bank.This mechanism will enhance the funds at the disposal of the states. This is because the banks, like a private bank, would have the charter to issue new currency for all projects deemed creditworthy. The banks must be subjected to strict auditing and underwriting requirements to minimize the negative effect of political influence in banking decisions and operations.

    These are just a few ideas to bruit in the search for a more just and prosperous global economy. Opposition to these ideas is strong and as old as it is strong. The mainstream advocates that governments either cut expenses or impose more severe taxation. Thisfalse cure is but a species of true austerity.  In robbing the private sector to pay the public, greater taxation is an invitation for recession to become a permanent fixture in the national architecture.

    Given the present difficulties, most nations require net increases in the amount of money in the political economy.  The new funds need to be allocated in the best possible ways to provide employment, spark infrastructural development, increase farm and industrial output while making the financial sector more amenable to helping the real sector move toward fuller employment.

    As I conclude, I again leave you with an excerpt from Financialism: Water From An Empty Well:

    This book is not about politics nor is it about economics. It is about the confluence where politics and economics meld to become each the other… It is about complex thought and about behavior and fact of even greater complexity. It is as much about the inhumane behavior of facts as it is about the facts of human behavior.  It is about how thought can go awry. Yet, the more an idea goes awry, the more it and its adherents insist on its validity. This gives an account of that class of people who make and multiple money for the sake of it. It points out those who have staked the well-being of the greater portion of us on unnecessary wagers placed with the whimsical gods of high finance. In the end, this book is for those who seek to build a political economy based on an equitable creation of wealth so that all may have a better run at a better future.”

    With this article and its earlier companions, my hope is to have added to our discourse on how to claim the prosperity that Providence intends for us all. Thank you.

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  • Financialism revisited (Part two)

    Financialism revisited (Part two)

    The Sweat of the Poor are the Pillars of the Castle the Poor are forbidden to enter.

    Last week’s piece ended with the assertion that governmental budget surpluses and balances are not inherently virtuous. Nor should they be elevated to the status of being the prime objective of the fiscal policy of a government that is the sovereign issuer of its currency. For such a government, insolvency in its own coin is an impossibility. Such a government can only run dry its treasury because that government achieves thrawn satisfaction in so doing. When the private sector threatens to become febrile from overheating or from running too long, too fast, brakes must be applied. Budget surpluses are warranted to constrain and cool private-sector hyperactivity. When the private sector falls weak and sluggish, budget deficits are apt to give that sector the added fuel needed to restore its strength that it may rise to its feet once more.

    Since the free market does not truly exist except in the imaginings of some and since markets are imperfect because they are the composite behavior of imperfect people, it is generally the case that the private sector will beg assistance in one form or another from government. Thus, the accounts of most governments, including those of the largest economies, usually run red. They operate at deficits year in, year out.

    If your knowledge of economics is confined to mainstream orthodoxy, you will shudder that deficit spending means mounting debt spending. You are right and wrong. The way fiscal and monetary operations are now structured, public deficit spending is associated with increased government debt. However, this is not from necessity but from conscious choice to favor the moneyed class above all others.

    The financing of government deficit spending is the acme of convolution. Its general acceptance is also one of the world’s most blatant examples of mass conditioning. You have been taught that a government must borrow the currency which it has the sovereign right to issue in order to fund a deficit. Government that can issue its currency in infinite amounts must seek borrow from someone who has not the power to issue the currency. Most have become so accustomed to this operation that they accept it as an article of blind faith.

    It is an article of stunning contrivance.Yet, most people are afraid to question this accepted oddity because they want to appear learned or sophisticated enough to understand why the process is as stilted as it is. People have been cowed into believing the most direct route between two visible points is an underground labyrinth. No one seeks to question it because none wants to be ridiculed as naïve or unlearned. Thus, we continue with a ritual the origins of we know little about. We must have to courage to question practices when they are more elaborate than they ought to be. Usually such convolution in matters of finance is a sign of something amiss. A great swindle has been established.We have been deceived to venerate it as a prudential exercise in fiscal restraint.

    Orthodoxy croaks that the system is designed as such because forcing government to borrow will constrain government from engaging in excessive deficit spending, thus curbing inflation. This is the most charitable reason given for this artifice. Even this explanation is so illogical that it defies reason that so many otherwise logical human would hold to it as they would a religious creed. First, making government borrow money only further increases the deficit that supposedly is meant to be constrained; this is because government must repay interest as well as principal on the borrowed money. To repay the heightened amount means government must continually borrowing.  Thus, this rationale undermines itself. It aggravates not mitigates the perceived ailment.

    Second, this type of debt-compounding deficit financing enriches the financial sector relative to the real economy. This means that deficit spending will be less productive in spurring the real economy – where the jobs and production are – than it inflating the financial sector. Third, this constraint does not seem to have proven effective in limiting government deficit spending over time. If a government is determined to engage in deficit spending, it will do so. Debt as a constraint to borrowing is a weak, false barrier. Fourth, it we want to contain inflation, it would simply be better put and more straightforward to simply establish an explicit inflation ceiling on fiscal operations. As that inflation ceiling is approached, deficit spending would lessen. This is more precise and will generate much less debt than the current architecture. Set an inflation ceiling and adhere its dictates! If government lacks the willpower to follow this simple way, that same government will not be kept from borrowing more and more money no matter the debt incurred by doing so.

    Thus, we come to the more compelling reason for the strange custom that government borrow its own money. The system was established not so much to battle inflation but to ensure financial institutions have a sure revenue stream. Financial institutions have a big appetite for government debt; they have engineered this system to produce such debt because that debt means their profit. Holding government bonds is a risk free investment; holding large volumes of the same means a handsome return even though the yield per bond is small. This is a sure return on investment. The banks know government can always pay its debt because of the simple reason that government has the unlimited ability to issue its currency.

    This is welfare for the rich and affluent writ large. It actually is a slap in the face of the ordinary citizen who can’t get government to provide the basic social services. We saw this same spirit of financial system welfare in operation during the 2009 recession.  All over the world, governments “printed” trillions of dollars of money to pump into financial institutions, rescuing them from the jeopardy of their own greedy intemperance. There is nothing wrong with relief to the financial institutions when part of broader economic rescue package. However, the relief given the financial sector was behemoth. That which went to the common man was scant and begrudgingly done. Financial institutions were bailed out while the rest of society was tied to a thin rope and left twisting in the wind.

    This bring us to the key point. We must learn that government deficit spending need not be synonymous with debt. The linkage of deficits and debt is based on an economic model that has run its course. In doing, so this model has helped expand the financial sector to where it is crowding out the real economy from getting the resources it requires. It is a cause and a symptom of the minatory financialism that now sparks serial economic crises.

    There is no logical reason why governments cannot fund their fiscal deficits simply by issuing their currencies without having to borrow more money. When the financial crisis hit, governments could not bail out the banks by borrowing from the banks. The financial firms had ruined themselves into widespread illiquidity and some to insolvency. The banks had become cash-strapped; that lack was the core of the crisis.  Unable to borrow from the spendthrift banks, governments did what only government could. They printed money by the trillions to feed and salvage banks. They printed trillions of dollars but the world did not collapse. In fact, a graver economic depression was held back. Inflation did not mount to dangerous proportions. During that period, the orthodox economists gagged their opposition to government printing money.

    If government can print trillions of dollars to save financial institutions without turning inflation into an all-consuming monster, then there is no defensible reason that governments around the world, without the entanglement of added debt, cannot print several hundred billion dollars on fiscal projects that create jobs, build infrastructure and provide improved services. Big money and big business will oppose this, again screaming inflation. However, the bank bailout illustrates that such deficit spending will not spark harmful levels of inflation when the economy is laggard and falling. Big money actually knows this. However, big money does not want you to know it. If the average person understood, they just might demand more from government.

    The hold of Big Money would be loosened or even broken altogether. Thus, Money Power has inculcated us on the way that it would have us go instead of the way that is best for us. In effect, economics is not an absolute science. It is a harsh art, a wrestling match of competing interests. Money and Power have enjoyed a long,intimate tryst. Money does what it can for Power and Power reciprocates the favor. Meanwhile, both detest the modest and the poor. They conspire to lower the humble to a place where his economic survival will appear to him a thankful feat such that he will not deign to question why those who already have now appear to have too much for even their own good.

    The present structure of deficit linked to debt is as if society passed a law forcing a farmer to go to the supermarket to purchase the very potatoes he grows in his fields.  By law, he cannot directly consume the produce he grows. He is compelled to buy it from another at a higher price than it cost him to grow it. To constrain a farmer in this way would be cruel, a definite sign that society unduly hates farmers or excessively loves supermarkets.Essentially, there is no difference in how we handle government deficits in real life and how we mistreat the farmer in this hypothetical circumstance.

    Deficit spending by printing money is no more inflationary than what banks do when they make a loan. You have been taught that banks make loans based on the deposits they hold from savers. You have been taught wrong. What you have been taught is so far from the truth that it cannot be considered an innocent mistake. It is an intellectual fraud invented to make us believe that governments should not be allowed the fiscal space this commentary now proposes. In the main, bank loans are not generated from prior deposits. The obverse is true.  Most bank deposits are created by loans made. When a bank concludes a person has a creditworthy proposal, the bank does not check its vaults to make sure it has the money for the loan. No.  The bank simply credits the borrower’s account by a few strokes on the computer keyboard. In effect, money is generate from nothing except the bank’s decision that the borrower can repay the loan with interest.

    However, orthodox economists dare not admit this procedure by which banks truly operate. To admit that banks actually “create money from nothing” would bruise their opposition to government deficit money printing.  The private sector can print money from thin air and have that action lauded as the productive juice of the economy and not at all inherently inflationary. There then is no reason to castigate government money printing as the parent of intrinsically harmful inflation. However, expansionary fiscal policy in the hands of a popular, democratic government could strengthen the economic lot and political power of the average man. Such an enlightened awakening runs contrary to the misanthropic designs of Money Power.

    Empirical evidence does not indicate that the individual decisions of bank loan officers about the profitability of the loan applications in their portfolios is any more productive or less inflationary than government decisions on fiscal policy spending. What determines whether additional money will create inflation is not whether thenew money derives from the private or public sector. What the money is spent on matters more. A government created naira spent on infrastructural projects that provide jobs as well as lower the costs of transportation and doing business may provide more than a naira’s worth of new wealth and production. As such, this spending will not be inflationary. Meanwhile, privately-created money spent on frivolous luxury items and meaningless diversions may well be inflationary.

    All other things being equal, government creation of money is less inflationary than private-money creation. That is because privately-created money always come with a cost. It bears interest because it is the product of a commercial loan. To repay the loan, the borrower must return to the lender more than one dollar.  This means one dollar in privately-created money is really worth less than one dollar in government created money which bears no interest.

    Provided the funds are directed to productive endeavors, the more government-created money in the system will lessen the aggregate debt and thus likely reduce rather than spark inflation. This is antithetical to all that the economic books have taught us to believe. Nonetheless, what has been written here is more real and accurate than the myths that now pervade. Next week, we will delve into what these observations may mean in terms of practical policies to give people the economic opportunity and fairness they seek.

    In the meantime, I leave you with the concluding paragraph of Financialism.

    “Our political economy can never be perfect, but that admission provides Financialism no easement to make the world more flawed. We cling to the belief that man can attain higher levels of economic cooperation in order to increase wealth and decrease scarcity. For this reason, we feel compelled to raise the alarm about Financialism and its attempt to reshape us in its harsh image. We are in a fight pitting the imperfect against the vile. The former has civic purpose. The latter has no purpose save the incessant feeding of its own selfishness. There really is no choice in deciding which side to join. We must do all we can to uphold the imperfection of man’s collaborative endeavors against the perfection of his selfish designs.”

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  • Financialism revisited (Part one)

    Financialism revisited (Part one)

    The eye sees more of the mind behind than of the reality before it.

    Those expecting the concluding part of my piece on global security, I ask your forgiveness. That commentary shall come. However, given the tremors rocking the global political economy, I felt compelled to focus on these developments this week.

    In 2012, I coauthored Financialism: Water from an Empty Well – How the Financial System Drains the Economy with Asiwaju Bola Tinubu. The book foresawserial financial and economic crises because of the evolution of the global political economy toward excessive financial speculation and a resultant debt accumulation that spoke incessant instability. We predicted another serious downturn was forming just over the horizon. That skein may be upon us.

    With the experience of the 2009 Deep Recession still relatively fresh, reason would suggest that global leaders and policy makers are better prepared to contain the coming threats. Yet, reason is a poor indicator at such moments. For much of the world’s elite and leadership, the lessons that should have been learned faded with the passing of the recession. As danger faded, did also that prudence and sagacity withdrew. Having sidestepped calamity, the masters of the economy returned to as they were before.  As a result, they rendered the current downturn something inevitable much as combustion is ordained when one marries fire to acetylene.

    World equity markets now quake.  This is a major factor in the turbulence.  Due to the expansionary monetary policies of most nations, the nominal values of financial assets were pushed higher than actual economic conditions warranted. This benefitted the elite yet was coldly indifferent to the rest of mankind.

    For the elite, the eye again saw what the mind told it to see and was blind to the reality in front of it. Yet, reality has a way of disturbing even the most elaborate intellectual mirage. Financial and stock markets would start to retreat at the hint of bad news.Most of players sensed they had been erecting ice castles in the cool shade. The sun had now come out.

    Asecond factor related to the abovementioned stock market sickness is that the Chinese economy flinches under massive debt caused by undue speculation and malinvestment in real estate and construction. The Chinese economy must now slow down as it transforms from a mercantilist export driven model to one that better promotes domestic wages and consumption. Along with this Chinese deceleration, the Eurozone continues its long dalliance with low growth.  Aggregate global demand remains slack because of government policy in most nations lean toward fiscal austerity yet robust monetary policy. This dictates that abundant flows of money are channeled to the wealthy while the means of the modest and poor are minutely augmented or even suffer a gross subtraction. Yet, the spending of the masses is the backbone of any economy. The wages and employment of the working class and the government assistance given the jobless poor fuel this spending. By throttling these things, the masters of the economy confine the real economy and most of the people to the doldrums. As such, the real economy still feels the effects of the 2009 financial crisis although the banking sector has been rescue from the breakage it has caused.

    A dramatic fall in oil prices is the third major factor in the current downturn. It is the only factor that does not originate in the financial sector. It started in the real economy. It will hurt oil producers but those most severely interrogated will be producer nations and firms that incurred significant debt in erroneous speculation that oil prices would continually soar. What now is transpiring gives breath to the maxim that behind every economic crisis is a financial crisis and behind every financial crisis is one bad debt too many.

    The theme of our Financialism book is that things do not have to be as they are. Reform is possible provided we change how we think about money and how it is created.

    At its core, the book warns that the current neoliberal economic model, in both theory and application, is outdated. This model ironically does not give adequate consideration for the role of money and finance in man’s commerce with his fellow man. Money is treated as an artifice constructed solely to avert the obvious strictures of barter. This breach of intellectual honesty and of empirical objectivity parents a multitude of sins.

    Making a lie of the myths contained in mainstream economic textbooks, barter never figured significantly in the economic history of any major society.  Money, debt and credit were among man’searliest social inventions. The mismanagement of these things has been at the source of most economic crises. Down the warped and crooked arc of human history, most economic crises first gestate as financial crises. However, orthodox economists ignore the independent impact of money in our economic behavior. They further compound this mistake by insisting free markets are optimally rationale and efficient.

    They have established a mindset where the movement and borrowing of money in the private sector is always judged as beneficial. The vocation of trading in money to make more money is not properly assessed; its merits are taken for granted. This mindset promotes the libertine flow of money and thus its abuse. It allows those who hold it in abundance to slant and distort the economy toward their myopic aims.

    Inthe aggregate, the effect of these aims is to place the financial sector in a dominant position over the rest of the economy. Rentier conduct and arbitrage become the hallmarks of the system. The economy is geared more to making money than making things and providing jobs. Thus, the economy, as measured by GDP, may impressively grow while the very processes of this growth compels the relative impoverishment of the majority of the people.

    Financial institutions were given wide latitude because it was thought they could never go astray.

    Even after they have demonstrated that if left to their own devices, their inherent trait is to go astray and take the entire economy down the thoroughfare of ruin, the banks and other financial institutions are quickly absolved of sin then allowed to continue as they were. Their misbehavior and the damaged caused is attributed to some inexplicable dark matter that no one can see or know. Though completely guilty, they are presumed innocent and treated as victims although caught with the loot in hand. Inclusion in the financial elite, is the new righteousness; it is in the manner of secular simony.

    Excessive speculation and debt are the rubrics of this stage of the evolution of global capitalism. This is the recipe for frequent financial crises and overall economic instability that robs from labor in order to prosper the rentier and insulate the speculator when his greedy devices turn against him. A worst system could hardly be imagined given the high level of economic progress the modern era has attained. With the world able to produce sufficient goods to improve the wealth status of every human being, the economic system places the average worker in a condition of debt peonage. Not as heinous as actual slavery, this peonage derives from the same spirit of the strong dominating and squeezing weaker others for the sake of profit.

    While the want to dominate others is a permanent trait of a certain segment of the human population, elevating this soiled objective to be the driving force of an economy is not inevitable. It is the product of conscious decision not of blind fate. We must begin to dismantle the inequitable construct of the economy. The starting place is a more realistic view of the role and importance of money.

    Because of the false notion that money is but a facilitator in the exchange of goods, money has been treated as if it were a commodity. To some only the precious metals of gold and silver are true money. To the metallists, every other form of money is counterfeit.

    Their belief is popular and seems commonsensical. But common sense is no insurance when based on fables so often stated that they assume the status of truth, masking what may be the a more complex reality. In other words, our sense is commonly tricked by false information, oft repeated.  For most of human history and in most places, gold and silver were not common currency.  These only came into use as a result of technological advance in metallurgy centuries ago.  They eventually would fall into disuse as currency because of economic practicality – these metals were inherently deflationary because of their limited and uncertain supply -and of technology.

    That paper and electronic signals are now “money” is consonant with history. As we progress, man seeks to distill money to its essence. Money is rendered faster and more mobile. The inherent trait of money is its finest, most obscure secret: its intangibility.

    Money is not a commodity; it is but a representation of economic value. It is not an actual consumable item of wealth or an approximation of such a material item any more than a flag is a factual approximation of the nation it represents. If you want to travel to Ghana, you cannot quench the desire by touching that nation’s flag.

    Money is essentially an idea, a social convention not dissimilar from, but significantly more contentious than, the custom of greeting another person through the mutual grasp of right hands.  It is our attempt to impose an objective numerical measurement on economic value, which is inherently subjective. By lending this cloak of objectivity to something innately subjective, it becomes possible to use the measure of money across space and time. Commerce, credit and investment are impossible without the concept of money. These factors are what gives money value in itself. Thus, money is important as an economic construct in and of itself but it is not constructed of wealth; it is the vehicle by which we transport and secure value so long as we all agree that money does such a thing. Thus although money has independent value in itself it also has no value when isolated from the consumption of actual goods or services.

    However, the serious flaw in orthodox thinking is that they reduce commerce to being the trade in material goods. Money is just a mere facilitator for them.  Like a cipher in mathematics, it is useful but has no independent value. The reality is that commerce is more than the trade of tangible wares. At its essence, commerce is the dynamic reallocation of value from one economic actor to another. That reallocation of value is a vital labor that only money can perform.

    In that money is an idea, its essence is not linked to anything material; it thus is not bound to finite limits like a normal commodity. There is only so much gold, oil, cotton or cassava to be had at any given time.  However, the amount of money or, for that matter, any other financial instruments is theoretically infinite.

    This theoretical limitlessness of money is being exploited by the financialists to expand their nominal holdings and financial portfolios to the detriment of most others. They know and understand this unique aspect in the nature of money. Most laymen do not. The affluent now rudely exploit this asymmetry in financial understanding to build their fortune on your misfortune. It is past due that we study whether this limitlessness can be used to help the vast majority of humanity instead of just those already possessed with large quantities of money.

    First, we must reform the financial architecture of our political economy. That architecture was built during the time that money was tied to the gold standard. The restraints imposed by this system may have a served a purpose during that era. But much of the utility of these structures passed away with the gold standard in the 1970s. To continue to follow these ways is as morbid an exercise as attempting to give daily meals to a cadaver that went cold more than four decades ago. It is a necromancy that does nothing for that which has died but impairs those still alive.

    When national governments ran deficits during the gold standard era, they had to finance the deficits by depleting their gold reserves; money was readily convertible to gold on demand.  There was logic in government maintaining a balanced budget. However, we exist in a time of nonconvertible fiat currencies. Governments can run deficits in their own currencies without depleting gold or any other reserves. The innate utility in a balanced or a surplus budget evaporates. A balanced budget should no longer be an objective but a strategy deployed toward a larger objective. That objective should be the optimal employment of labor and assets for the creation of wealth without allowing inflation to escalate to harmful levels.

    In practical terms, these means that during times of private sector weakness, government fiscal policy should expand to fill the vacuum and bolster the flagging private sector. Only when the private sector becomes robust, should government retreat from fiscal activism.  Yet, orthodox theory demands a fiscal austerity as a matter of course, no matter the circumstance. At a time of private sector weakness, this is a recipe for recession or worse.

    Adherence to this outmoded thinking is a major reason behind the slow global economy. Because the wealthy run things, they pushed governments to maintain policies of monetary activism coupled with fiscal restraint. This allowed financial asset prices to rise and enrich the wealthy. This new wealth spurred increased speculation. The consequences of that speculation are now being felt in global stock and asset markets. Meanwhile, with minimalist fiscal policies being the norm, global levels of production and employment moved very little.

    The rich have advanced much farther than the poor since the 2009 recession.This disparity allows orthodox economists and mainstream leaders like President Obama and Prime Minister Cameron to proclaim their economies are growing yet admit that the majority of their people have seen no improvement in their economic lot since the recession. For these leaders and their economic wise men, the economy is no longer the people. Their economy is defined as the nominal GDP figure, even when the growth in that tally is produced by the over-inflation of financial asset prices. For them, financial paper is more relevant than the welfare of the people. With leaders and economists like this at the helm of affairs, we are in for it unless we get out of it. More on that next week.

     

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  • Global peace: Down the unraveling road (part one)

    Global peace: Down the unraveling road (part one)

    The wise man abhors the insane device so that the fruit of his effortsmakes not his own destruction.

    Widespread conflagration is closer than it has been in the past half century. The sinews of war extend into tender confines where too many nations crave influence. Once isolated ructions now intertwine in a snarl of martial encounter reflecting a deeper rivalry between two nations.  America and Russia eye each other across the precipice of competing interests; they now move toward the bridge of conflict. The rainbows of peace disappear. The sky turns crimson with the promise of blood. This is not how events were supposed to turn but the world rarely does as it ought. It does as it is.

    Someone forget to inform the Cold War that it died with the Soviet Union. The current friction between America and Russia proves the Cold War was less a contest of ideologies than a modern version of the classical encounter of strong nations with competing interests. The Soviet Union eventually folded into the recesses of history. From its demise arose an unsure, weak Russia. In due course, Russia would become less unsure and less weak. It would soon remember itself as the nation bestride the Eurasian landmass with bulging designs to influence and return into its orbit those nations cast with the unenviable fate of bordering it.

    When the Soviet Union fell, America’s leadership ingested a litany of ideas that seemed self-evident from the Washington perspective. Today, the indiscriminant exercise of those ideas imperil world peace. When historians look back on this period a century or two from now, they will view these concepts as the tradecraft of madmen, a school of lunatic minds to which the foreign policy of the world’s mightiest nation was ceded.

    American foreign policy has been reduced to tenets more akin to theology than a rational assessment of strategic interests. American leaders came to depictthemselves as sole guardians and interpreters of international morality. They also were the lone superpower; the nation would fashion its military budget to maintain the vast power differential over all nations, making that superpower status an enduring feature of the global structure.  As such, might and right merged into one. America was both the strongest power and highest priest of the international order.

    American leaders felt their expressions were the words of supreme reason if not of God himself. They were the sword of peace ready to pass judgment on those who bade not to their righteous dictates.

    America would broadly export its political, economic, and military power to reshape the world in its image. Those nations and peoples that adhered to its way would not incur wrath; the cost would be their independence in action and policy. They must bend their national polices to suit American interests then secondarily their own. Those nations that dared follow their own inklings would be placed on the disciplinary list. If they venture too far down the self-minded course, they would be undermined, possibly attacked.

    Thus, Iraq and Libya were made to pay in limb and blood for the recalcitrance of their former leaders. Syria has been escorted to the chopping block. Iran remains on the list of the endangered. Afghanistan is a proverb for incessant violence. Forlorn Yemen mimics it. The Middle East has become the site of battle that has more to do with oil and irrational geopolitical competition than with a clash of religions or of Western and Islamic civilizations. There is little civilized about what the actors now do in the name of national interests.

    While internally democratic, America implementsits foreign policy with the spirit of a myopic theocracy. It is a well spring of high-sounding principles honored only in their enunciation, not in their implementation. That which is done looks dissimilar for what is said. The word “hypocrisy”ventures to mind.

    America says it primary battle is the war against terrorism. Indeed, America abhors the fingerprint of foreign terror inside America. When terror confines itself to distantMiddle East or Africa, American attitudes are more nuanced. Opposition to terrorism becomes conditional; cooperation with it even becomes possible. America may oppose terrorism in the abstract. However, America completely oozes with actionable hostility toward nations that refuse to tow its line. America will align with terrorists to subdue these nations.

    America and its allies cooperated with Al Qaeda to steamroll Qaddafi. In addition to devastating Libya, America was purposefully lax in securing Libya’s military armories. It turned the other way as Al Qaeda lay hold of the ample supplies of war materiel. With Western aid, many of these terrorist filibusters with their newly acquired weapons embarked for Syria. Aided by Western indifference, chunks of the weapons cacheswent south via Mali into the hands of Boko Haram. In downing a nonthreatening but stubbornly vociferous Qaddafi, American policy abetted a violent terrorism that spans an arc from the southern banks of Lake Chad, bending through Tripoli to the northern banks of the Tigris in Mesopotamia. To subdue Qaddafi, America was willing that Boko haram would wax stronger and that ISIL would spawn from the chaos that Syria and Iraq had become.

    Syria is now the crucial point but not the crucial counterparty. Russia is. Simply because everyone seems to want to put their hand in the matter, Syria is the most dangerous spot in the world today. Because of the roster of state and non-state actors crowding the narrow stage, it is a place where a minor tactical mishap can spiral intowider conflict pitting Russia againstAmerica.

    America seeks to ejectAssad simply because they have always sought his ouster. He has been blacklisted for years although he is not a material threat to any interest America would deem vital. At most, he has been merely a visible nuisance of no serious jeopardy except to America’s expectation that no international player should publicly object to its ways and means. To remove him from the list of the condemned would be to implicitly admit error; this would hamstring the aim of recreating the world in their image instead of allowing sovereign nations to evolve as their sovereignty leads them. Like any self-righteous theocracy, America cannot amend its edicts for they consider their strategies as ex cathedra. Inertia becomes anathematic to vision, adaptation and correction. America’s leaders fate themselves to grievous errors because they abhor admitting minor ones.

    However, something happened on the road to Damascus. There was no divine revelation this time. There was mortal rivalry. Russia had invested itself heavily in Syria and was not about to allow America to ruin its long-established interests.  A key Russian naval base resides there, protecting Russia’s Black Sea portal and projecting Russia into the eastern Mediterranean.

    Russia passively watched as America bushwhacked Saddam in Iraq because Moscow had no affection or the Iraqi despot. They watched as America entangled itself in Afghanistan. America’s thrust against Al Qaeda and the Taliban served Russian interests on many levels, including giving Moscow the perverse satisfaction of seeing America fall into the same quagmire that perplexed the Soviet military some thirty years before. The more powerful the nation, the fewer lessons it seems to learn until that power is sorely dissipated by folly.

    Russia even watched as America crushed Moscow’sunreliable friend in Libya because Russia had no vital interest involved in the matter. Based on this long string of passive inaction, America badly miscalculated Russian interests and resolve. America tried to pluck Ukraine from Russia’s orbit. That was a step too far. Russia was not going to relinquish this bird in the hand. Russia not only opposed Western designs, it annex the Crimea to secure the northern reaches of the Black Sea and to show it was a master of the geopolitical game when played in its own back yard. The tables had now turned. After embarrassing America and NATO in the Ukraine, Russia again recently outflanked that duo in Syria. By complementing Assad’s ground forces with strong air cover, Russia has annealed the regime and undermined America strategy to topple Assad.

    In Eastern Europe and then the Middle East, Russia foiled American foreign policy drives in two successive instances. This affrontsAmerica’s claimed global leadership. It also testifies to the superior logic and validity of traditional balance of power considerations in comparison to American unipolar conceptions. America may be the lone superpower but it is not the only power. When President Obama dismissed Russia a mere “regional power,” he revealed a shocking lack of appreciation for the principles underlying the wise application of geopolitical power. Geographic propinquity has much to do with most things politic. Actual events and crises only occur in a defined geographic space; that space can never be equidistant for all interested parties. As a general rule, the closer the problem, the more likely that problem impinges on a nation’s strategic interests. The more a nation’s objective strategic interest is involved, the more assets and commitment that nation will devote to resolving the matter in its favor.

    The obvious power differential between America and Russia is but a portion of the equation. The fuller answer requires an assessment of the two nations’ interests and relative commitment to seeing their policy to fruition, regardless of the costs. In the arena of limited wars, asymmetry in power is often overcome by a countervailing asymmetry in vital interests and firmness of commitment to national cause. America has yet learned this simple truth. Consequently, America calculates that all nations should look in awe at its superior arsenal then bow to whatever it wants, wherever it wants it.

    Conversely, Russia more accurately judged in Ukraine and Syria that its interests were such that it could bring more assets to bear because it would more likely walk the hard mile. America, with all of its muscle, would calculate that the risks outstrip the potential reward. It would dip its toe in the water but recoil from getting its entire foot wet.  America had more power but lesser interests; thus, it was unwilling to bring that full power to bear, particularly in the Ukraine. Meanwhile, Russia enjoyed inferior power but was more willing to bring a greater percentage of that lesser might to bear in order to win its way.

    In war and most forms of human rivalry pitting one aggregation against another such entity, commitment and willpower likely are more decisive than the possession of superior power, particularly when the locus of the confrontation lies closer to the weaker entity than the stronger one. In such instances, the superior power has less interest in the outcome. Thus, it retains most of its power in the bank. By not bringing such power into play, that actor renders its superior muscle impotent as if nonexistent.

    This tracks events in Ukraine. Russia was prepared to support the rebels to the hilt. America merely played around the edges. Learning a lesson from Ukraine, Russia felt it might be able to outflank America in Syria if America’s policy errors left such an aperture.

    President Obama has temporizes in Syria for years. To his credit, his preternatural caution may be his greatest contribution to world peace during his term as president. He has resisted the call of foreign policy hawks in both parties to engage more intensely in Syria and to confront Russia more aggressively in all places and in all manner of ways.

    Many of these hawks pine for war against Russia. By bringing Russia, the world’s second most potent military, under heel America would solidify its position as the lone superpower. It would also send a chilling message to more inferior nations: they best not provoke American ire lest they want to suffer an avalanche of steel and fire. Obama is not such a wanton militarist. Not wanting to get involved in wider military engagement unless the outcome was basically assured, President Obama has been a brake on these aggressive, Prussian designs.

    While Barack the Hesitant dallied between war and diplomacy, the Russian leader waited for his opportune moment. When he saw Assad was eroding in what had become a war of attrition, he entered the fray to bolster the beleaguered ally. Putin turned his air force into Assad’s, attacking ISIL and those like ISIL that America backed.

    This was a calculated risk, an intrepid move. For the first time, American and Russian military aircraft flew in the same theater of war, fighting in part on the same side (both against ISIL), in part as enemies (one in support, one against Assad). Putin now bombs ISIL and its supply and commercial lines with Turkey with a ferocity absent from the American air strikes. In comparison, American strikes have been recreational, not attempting to hit ISIL where it hurts as that would undermine NATO ally Turkey and also turn Assad into a third party beneficiary of Washington’s aerial might.

    Putin wagers that Obama will not try to match Russia’s escalation with an America escalation. Putin believes he has the measure of Obama: that Obama shrinks from the risks attendant togenuine war fought with so many variable factors that the result is less then certain. Add heat and Obama is more likely to sue for diplomacy than roll out his bigger guns. Thus far, Putin has been right but perhaps for the wrong reason.

    Although Obama is risk averse, we should give him more credit for being clear-headed than for being chicken-livered. He realizes much could quickly go wrong. In his constellation of important issues, the risk of regional and possible world war over Syria is senseless. He would have to venture the risk if Israel’s existence was being threatened. But Syria is an inferior case. To assume such a risk just to unseat Assad would be the acme of professional negligence. It could shred peace to tatters.

    Already too many actors are engaged in Syria. The nation is taking on the attributes of the Balkans before 1914, with more powerful nations seeing important interests in the weak region where no such interests actually attach. The overinflated interests of one power clashed with the real interests of another. One assassination struck the match that set all aflame. WWI erupted in this straitened atmosphere, bringing Western civilization to near collapse.

    Barack Obama does not want this insanity on his resume. However, others connive to bring about momentous collision. In shooting down a Russian plane weeks ago, Ankara tried to goad Moscow to retaliate against it. If Moscow had swallowed the bait by responding militarily, Turkey would have invoked the NATO principle that an attack on one is deemed an attack against all. This would have placed the nose of the Russian bear squarely against the American eagle. The world would have taken a colossal stride toward scarlet encounter.

    Thank goodness neither Putin nor Obama ran askew at that critical moment. The two leaders could hardly be more dissimilar. Obama is the skittish intellectual conscious about not fouling his singular place in history as America’s first Black president. Putin is the calculating practitioner of realpolitik seeking to etch his name in history by lifting Russia to its former glory as the core of an empire stretching from the Caucasus to the Pacific. While their room for maneuver without losing face is slowly and dangerously narrowing, both have thus far avoided the rash move. In different ways and for different reasons, both are flawed heroes because they represent the last line before peace turns to war. This may not hold.

    Both dislike each other; neither can afford to allow that sentiment to define future actions. They must work together as much as they will work apart.Meanwhile, both must fend off hawks in their camps who would like nothing better than to up the ante until the only wager possible is that of war.

     

    (08060340825 sms only)

  • Global peace: Down the unraveling road (part one)

    Global peace: Down the unraveling road (part one)

    The wise man abhors the insane device so that the fruit of his effortsmakes not his own destruction.

    Widespread conflagration is closer than it has been in the past half century. The sinews of war extend into tender confines where too many nations crave influence. Once isolated ructions now intertwine in a snarl of martial encounter reflecting a deeper rivalry between two nations.  America and Russia eye each other across the precipice of competing interests; they now move toward the bridge of conflict. The rainbows of peace disappear. The sky turns crimson with the promise of blood. This is not how events were supposed to turn but the world rarely does as it ought. It does as it is.

    Someone forget to inform the Cold War that it died with the Soviet Union. The current friction between America and Russia proves the Cold War was less a contest of ideologies than a modern version of the classical encounter of strong nations with competing interests. The Soviet Union eventually folded into the recesses of history. From its demise arose an unsure, weak Russia. In due course, Russia would become less unsure and less weak. It would soon remember itself as the nation bestride the Eurasian landmass with bulging designs to influence and return into its orbit those nations cast with the unenviable fate of bordering it.

    When the Soviet Union fell, America’s leadership ingested a litany of ideas that seemed self-evident from the Washington perspective. Today, the indiscriminant exercise of those ideas imperil world peace. When historians look back on this period a century or two from now, they will view these concepts as the tradecraft of madmen, a school of lunatic minds to which the foreign policy of the world’s mightiest nation was ceded.

    American foreign policy has been reduced to tenets more akin to theology than a rational assessment of strategic interests. American leaders came to depictthemselves as sole guardians and interpreters of international morality. They also were the lone superpower; the nation would fashion its military budget to maintain the vast power differential over all nations, making that superpower status an enduring feature of the global structure.  As such, might and right merged into one. America was both the strongest power and highest priest of the international order.

    American leaders felt their expressions were the words of supreme reason if not of God himself. They were the sword of peace ready to pass judgment on those who bade not to their righteous dictates.

    America would broadly export its political, economic, and military power to reshape the world in its image. Those nations and peoples that adhered to its way would not incur wrath; the cost would be their independence in action and policy. They must bend their national polices to suit American interests then secondarily their own. Those nations that dared follow their own inklings would be placed on the disciplinary list. If they venture too far down the self-minded course, they would be undermined, possibly attacked.

    Thus, Iraq and Libya were made to pay in limb and blood for the recalcitrance of their former leaders. Syria has been escorted to the chopping block. Iran remains on the list of the endangered. Afghanistan is a proverb for incessant violence. Forlorn Yemen mimics it. The Middle East has become the site of battle that has more to do with oil and irrational geopolitical competition than with a clash of religions or of Western and Islamic civilizations. There is little civilized about what the actors now do in the name of national interests.

    While internally democratic, America implementsits foreign policy with the spirit of a myopic theocracy. It is a well spring of high-sounding principles honored only in their enunciation, not in their implementation. That which is done looks dissimilar for what is said. The word “hypocrisy”ventures to mind.

    America says it primary battle is the war against terrorism. Indeed, America abhors the fingerprint of foreign terror inside America. When terror confines itself to distantMiddle East or Africa, American attitudes are more nuanced. Opposition to terrorism becomes conditional; cooperation with it even becomes possible. America may oppose terrorism in the abstract. However, America completely oozes with actionable hostility toward nations that refuse to tow its line. America will align with terrorists to subdue these nations.

     America and its allies cooperated with Al Qaeda to steamroll Qaddafi. In addition to devastating Libya, America was purposefully lax in securing Libya’s military armories. It turned the other way as Al Qaeda lay hold of the ample supplies of war materiel. With Western aid, many of these terrorist filibusters with their newly acquired weapons embarked for Syria. Aided by Western indifference, chunks of the weapons cacheswent south via Mali into the hands of Boko Haram. In downing a nonthreatening but stubbornly vociferous Qaddafi, American policy abetted a violent terrorism that spans an arc from the southern banks of Lake Chad, bending through Tripoli to the northern banks of the Tigris in Mesopotamia. To subdue Qaddafi, America was willing that Boko haram would wax stronger and that ISIL would spawn from the chaos that Syria and Iraq had become.

    Syria is now the crucial point but not the crucial counterparty. Russia is. Simply because everyone seems to want to put their hand in the matter, Syria is the most dangerous spot in the world today. Because of the roster of state and non-state actors crowding the narrow stage, it is a place where a minor tactical mishap can spiral intowider conflict pitting Russia againstAmerica.

    America seeks to ejectAssad simply because they have always sought his ouster. He has been blacklisted for years although he is not a material threat to any interest America would deem vital. At most, he has been merely a visible nuisance of no serious jeopardy except to America’s expectation that no international player should publicly object to its ways and means. To remove him from the list of the condemned would be to implicitly admit error; this would hamstring the aim of recreating the world in their image instead of allowing sovereign nations to evolve as their sovereignty leads them. Like any self-righteous theocracy, America cannot amend its edicts for they consider their strategies as ex cathedra. Inertia becomes anathematic to vision, adaptation and correction. America’s leaders fate themselves to grievous errors because they abhor admitting minor ones.

    However, something happened on the road to Damascus. There was no divine revelation this time. There was mortal rivalry. Russia had invested itself heavily in Syria and was not about to allow America to ruin its long-established interests.  A key Russian naval base resides there, protecting Russia’s Black Sea portal and projecting Russia into the eastern Mediterranean.

    Russia passively watched as America bushwhacked Saddam in Iraq because Moscow had no affection or the Iraqi despot. They watched as America entangled itself in Afghanistan. America’s thrust against Al Qaeda and the Taliban served Russian interests on many levels, including giving Moscow the perverse satisfaction of seeing America fall into the same quagmire that perplexed the Soviet military some thirty years before. The more powerful the nation, the fewer lessons it seems to learn until that power is sorely dissipated by folly.

    Russia even watched as America crushed Moscow’sunreliable friend in Libya because Russia had no vital interest involved in the matter. Based on this long string of passive inaction, America badly miscalculated Russian interests and resolve. America tried to pluck Ukraine from Russia’s orbit. That was a step too far. Russia was not going to relinquish this bird in the hand. Russia not only opposed Western designs, it annex the Crimea to secure the northern reaches of the Black Sea and to show it was a master of the geopolitical game when played in its own back yard. The tables had now turned. After embarrassing America and NATO in the Ukraine, Russia again recently outflanked that duo in Syria. By complementing Assad’s ground forces with strong air cover, Russia has annealed the regime and undermined America strategy to topple Assad.

    In Eastern Europe and then the Middle East, Russia foiled American foreign policy drives in two successive instances. This affrontsAmerica’s claimed global leadership. It also testifies to the superior logic and validity of traditional balance of power considerations in comparison to American unipolar conceptions. America may be the lone superpower but it is not the only power. When President Obama dismissed Russia a mere “regional power,” he revealed a shocking lack of appreciation for the principles underlying the wise application of geopolitical power. Geographic propinquity has much to do with most things politic. Actual events and crises only occur in a defined geographic space; that space can never be equidistant for all interested parties. As a general rule, the closer the problem, the more likely that problem impinges on a nation’s strategic interests. The more a nation’s objective strategic interest is involved, the more assets and commitment that nation will devote to resolving the matter in its favor.

    The obvious power differential between America and Russia is but a portion of the equation. The fuller answer requires an assessment of the two nations’ interests and relative commitment to seeing their policy to fruition, regardless of the costs. In the arena of limited wars, asymmetry in power is often overcome by a countervailing asymmetry in vital interests and firmness of commitment to national cause. America has yet learned this simple truth. Consequently, America calculates that all nations should look in awe at its superior arsenal then bow to whatever it wants, wherever it wants it.

    Conversely, Russia more accurately judged in Ukraine and Syria that its interests were such that it could bring more assets to bear because it would more likely walk the hard mile. America, with all of its muscle, would calculate that the risks outstrip the potential reward. It would dip its toe in the water but recoil from getting its entire foot wet.  America had more power but lesser interests; thus, it was unwilling to bring that full power to bear, particularly in the Ukraine. Meanwhile, Russia enjoyed inferior power but was more willing to bring a greater percentage of that lesser might to bear in order to win its way.

    In war and most forms of human rivalry pitting one aggregation against another such entity, commitment and willpower likely are more decisive than the possession of superior power, particularly when the locus of the confrontation lies closer to the weaker entity than the stronger one. In such instances, the superior power has less interest in the outcome. Thus, it retains most of its power in the bank. By not bringing such power into play, that actor renders its superior muscle impotent as if nonexistent.

    This tracks events in Ukraine. Russia was prepared to support the rebels to the hilt. America merely played around the edges. Learning a lesson from Ukraine, Russia felt it might be able to outflank America in Syria if America’s policy errors left such an aperture.

    President Obama has temporizes in Syria for years. To his credit, his preternatural caution may be his greatest contribution to world peace during his term as president. He has resisted the call of foreign policy hawks in both parties to engage more intensely in Syria and to confront Russia more aggressively in all places and in all manner of ways.

    Many of these hawks pine for war against Russia. By bringing Russia, the world’s second most potent military, under heel America would solidify its position as the lone superpower. It would also send a chilling message to more inferior nations: they best not provoke American ire lest they want to suffer an avalanche of steel and fire. Obama is not such a wanton militarist. Not wanting to get involved in wider military engagement unless the outcome was basically assured, President Obama has been a brake on these aggressive, Prussian designs.

    While Barack the Hesitant dallied between war and diplomacy, the Russian leader waited for his opportune moment. When he saw Assad was eroding in what had become a war of attrition, he entered the fray to bolster the beleaguered ally. Putin turned his air force into Assad’s, attacking ISIL and those like ISIL that America backed.

    This was a calculated risk, an intrepid move. For the first time, American and Russian military aircraft flew in the same theater of war, fighting in part on the same side (both against ISIL), in part as enemies (one in support, one against Assad). Putin now bombs ISIL and its supply and commercial lines with Turkey with a ferocity absent from the American air strikes. In comparison, American strikes have been recreational, not attempting to hit ISIL where it hurts as that would undermine NATO ally Turkey and also turn Assad into a third party beneficiary of Washington’s aerial might.

    Putin wagers that Obama will not try to match Russia’s escalation with an America escalation. Putin believes he has the measure of Obama: that Obama shrinks from the risks attendant togenuine war fought with so many variable factors that the result is less then certain. Add heat and Obama is more likely to sue for diplomacy than roll out his bigger guns. Thus far, Putin has been right but perhaps for the wrong reason.

    Although Obama is risk averse, we should give him more credit for being clear-headed than for being chicken-livered. He realizes much could quickly go wrong. In his constellation of important issues, the risk of regional and possible world war over Syria is senseless. He would have to venture the risk if Israel’s existence was being threatened. But Syria is an inferior case. To assume such a risk just to unseat Assad would be the acme of professional negligence. It could shred peace to tatters.

    Already too many actors are engaged in Syria. The nation is taking on the attributes of the Balkans before 1914, with more powerful nations seeing important interests in the weak region where no such interests actually attach. The overinflated interests of one power clashed with the real interests of another. One assassination struck the match that set all aflame. WWI erupted in this straitened atmosphere, bringing Western civilization to near collapse.

    Barack Obama does not want this insanity on his resume. However, others connive to bring about momentous collision. In shooting down a Russian plane weeks ago, Ankara tried to goad Moscow to retaliate against it. If Moscow had swallowed the bait by responding militarily, Turkey would have invoked the NATO principle that an attack on one is deemed an attack against all. This would have placed the nose of the Russian bear squarely against the American eagle. The world would have taken a colossal stride toward scarlet encounter.

    Thank goodness neither Putin nor Obama ran askew at that critical moment. The two leaders could hardly be more dissimilar. Obama is the skittish intellectual conscious about not fouling his singular place in history as America’s first Black president. Putin is the calculating practitioner of realpolitik seeking to etch his name in history by lifting Russia to its former glory as the core of an empire stretching from the Caucasus to the Pacific. While their room for maneuver without losing face is slowly and dangerously narrowing, both have thus far avoided the rash move. In different ways and for different reasons, both are flawed heroes because they represent the last line before peace turns to war. This may not hold.

    Both dislike each other; neither can afford to allow that sentiment to define future actions. They must work together as much as they will work apart.Meanwhile, both must fend off hawks in their camps who would like nothing better than to up the ante until the only wager possible is that of war.

    (08060340825 sms only)

  • Global peace: Down the unraveling road (part one)

    Global peace: Down the unraveling road (part one)

    The world is closer to widespread conflagration than it has been in the past half century. The sinews of war extend into tender confines in which too many nations crave influence. Once isolated conflagrations now intertwine in a snarl of martial encounter reflecting a deeper rivalry between two nations.  America and Russia eye each other across the precipice of competing interests; they move toward the bridge of conflict. The rainbows of peace disappear. The sky turns crimson with the promise of blood. This is not how events were supposed to turn but the world rarely does as it ought. It does as it is.

    Someone forget to inform the Cold War that it died with the Soviet Union. The current friction between America and Russia proves the Cold War was less a contest of ideologies than a classical encounter of strong nations with competing interests. The Soviet Union did eventually fold into the recesses of history. From its demise arose an unsure, weak Russia. In due course, Russia would become less unsure and less weak. It would soon remember itself as the nation  bestride the Eurasian landmass with bulging designs to influence and draw back into its orbit those nations born with the unenviable fate of bordering it.

    When the Soviet Union fell, America’s leadership ingested a litany of ideas that seemed self-evident from the Washington perspective. Today, the indiscriminant exercise of those ideas imperil world peace. When historians look back on this period a century or two from now, they will view these concepts as the tradecraft of madmen, a school of lunatic minds to which the foreign policy of the world’s mightiest nation was surrendered.

    American foreign policy was reduced to tenets more akin to theology than a rational assessment of strategic interests. American leaders came to depictthemselves as sole guardians and interpreters of international morality. They also were the lone superpower and would fashion their military budget to maintain the vast power differential over all nations, making that status an enduring feature of the global structure.  As such, might and right merged into one. America was both the strongest power and highest priest of the international order.

    American leaders felt their expressions were the words of supreme reason if not of God himself. They were the sword of peace ready to pass judgment on those who bade not to their righteous dictates.

    America would broadly export its political, economic, and military power to reshape the world in its image. Those nations and peoples that adhered to its way would not incur wrath; the cost would be their independence in action and policy. They must bend their national polices to suit American interests then secondarily their own. Those nations that dared follow their own inklings would be placed on the disciplinary list. If they went too far along the self-minded course, they would be undermined, possibly attacked.

    Thus, Iraq and Libya were made to pay in limb and blood or the recalcitrance of their former leaders. Syria has been ushered to the chopping block. Iran remains on the list of the endangered. Afghanistan is a proverb for incessant violence. Forlorn Yemen mimics it. The Middle East has become the site of battle that has more to do with oil and geopolitical competition than with a clash of religions or of Western and Islamic civilizations. There is little civilized about what the actors are doing.

    While internally democratic, America, in implementing its foreign policy,does so with the spirit of a myopic theocracy.  It is a well spring of high sounding principles honored only their enunciation, not in their implementation. That which is done looks dissimilar for what is said. The word “hypocrisy”ventures to mind.

    America says it primary battle is the war against terrorism. Indeed, America abhors the fingerprint of foreign terror inside America. When terror confines itself to distantMiddle East or Africa, American attitudes are more nuanced. Opposition to terrorism is less certain. Cooperation with it even becomes possible. America may oppose terrorism. However, America completely oozes with actionable hostility toward nations that refuse to tow its line. America will even align with terrorists to subdue these nations.

    America and its allies cooperated with Al Qaeda to steamroll Qaddafi. In addition to devastating Libya, America was purposefully lax in securing Libya’s military armories. It turned the other way as Al Qaeda lay hold of amply supplies of war materiel. With Western aid, many fighters and new weapons went to Syria. Aided by Western indifference, some of cache went south via Mali into the hands of Boko Haram. In downing a nonthreatening but stubborn Qaddafi, American policy abetted violent terrorism spanning an arc from the southern banks of Lake Chad through Tripoli to the northern banks of the Tigris in Mesopotamia. To subdue Qaddafi, America was willing that Boko haram would wax stronger and that ISIL would spawn from the chaos that Syria and Iraq had become.

    Syria is now the crucial point but not the crucial counterparty. Russia is. Simply because everyone wants to put their hand in the matter, Syria is the most dangerous spot in the world today. Because of the roster of state and non-state actors crowding unto this narrow stage, it is a place where a minor tactical move gone wrong can spiral into a wider conflictpossibly between Russia and America.

    America seeks to ejectAssad simply because they have always sought his ouster. He has been blacklisted for years although not a material threat to any interest America would deem vital. At most, he has been merely a visible nuisance of no serious jeopardy except to America’s expectation that no international player should publicly object to its ways and means. To remove him from the list of the condemned would be to implicitly admit error; this would hamstring the aim of recreating the world in their image instead of allowing sovereign nations to evolve as their sovereignty leads them. Like any self-righteous theocracy, America cannot amend its edicts for they consider their strategies as ex cathedra. Inertia becomes anathematic to vision, adaptation and correction. America’s leaders fate themselves to commit grievous error because they abhor admitting minor ones.

    However, something happened on the road to Damascus. There was no divine revelation this time. There was mortal rivalry. Russia had invested itself heavily in Syria and was not about to allow America to ruin its long-established interests.  A key Russian naval base resided there, protecting Russia’s Black Sea portal and projecting Russia into the eastern Mediterranean.

    Russia passively watched as America bushwhacked Saddam in Iraq since Moscow had no affection or the Iraqi despot. They watched as America entangled itself in Afghanistan. America’s thrust against Al Qaeda and the Taliban served Russian interests on many levels, including giving Moscow the perverse satisfaction of seeing America fall into the same quagmire that perplexed the Soviet military some thirty years before. The more powerful the nation, the fewer lessons it learns until that power is sorely dissipated.

    Russia even watched as America crushed Moscow’s distant and unreliable friend in Libya because Russia had no vital interest involved in the matter. Based on this long string of passive inaction, America badly miscalculated Russian interests and resolve. America tried to pluck Ukraine from Russia’s orbit. That was a step too far. Russia was not going to let this prime bird go. Russia not only opposed the confiscation, it annex the Crimea to secure the northern reaches of the Black Sea and to show it was a master of the geopolitical game when played in its own back yard. The tables had now turned. After embarrassing America and NATO in the Ukraine, Russia again recently outflanked that same duo in Syria. By complementing Assad’s ground forces with its strong air cover, Russia has annealed the regime and undermined America strategy to topple Assad.

    In Eastern Europe and then the Middle East, Russia foiled American foreign policy drives in two successive instances. This affrontsAmerica’s claimed global leadership. It also testifies to the superior logic and validity of traditional balance of power considerations in comparison to American unipolar conceptions. America may be the lone superpower but it is not the only power. When President Obama dismissively called Russia a mere “regional power,” he revealed a shocking lack of appreciation for the principles underlying the wise application of geopolitical power. Geographic propinquity has much to do with most things politic. Actual events and crises can only occur in geographic space; that space can never be equidistance from all interested parties. As a general rule, the closer the problem, the more likely that problem impinges on a nation’s strategic interests. A derivative precept is that the more a nation’s objective strategic interest is involved, the more that nation will devote to resolving the matter in its favor.

    The obvious power differential between America and Russia is but a portion of the equation. The fuller answer requires an assessment of the two nations’ interests and commitment to seeing their policy to fruition, regardless of the costs. In the arena of limited wars, the asymmetry in power is often overcome by a countervailing asymmetry in vital interests and firmness of commitment to national cause. America has yet learned this simple truth. Consequently, America calculates that all nations should look in awe at its superior force then bow to whatever it wants, wherever it wants it.

    Conversely, Russia more accurately judged in Ukraine and Syria that its interests were such that it could bring arms to bear because it would more likely walk the hard mile. America, with all of its muscle, would calculate that the risks outstrip the potential reward. It would dip its toe in the water but recoil from getting its foot wet.  America had more power but lesser interests; thus, it was unwilling to bring that full power to bear, particularly in the Ukraine. Meanwhile, Russia enjoyed inferior power but was more willing to bring a greater percentage of that lesser might to bear in order to win its way.

    In war and most forms of human rivalry pitting one aggregation against another such entity, commitment and willpower likely are more decisive than the possession of superior power, particularly when the locus of the confrontation lies closer to the weaker entity than the stronger one. In such instances, the superior power has less interest in the outcome. Thus, it holds most of its power in the bank. By not bringing such power into play, that actor renders its superior muscle impotent as if nonexistent.

    This tracks events in Ukraine. Russia was prepared to support the rebels to the hilt. America merely played around the edges. Learning a lesson from Ukraine, Russia felt it might be able to outflank America in Syria if America’s policy errors left such an aperture.

    President Obama has temporizes in Syria for years. To his credit, his preternatural caution may be his greatest contribution to the world during his term as president. He has resisted the call of foreign policy hawks in both parties to engage more intensely in Syria and to confront Russia more aggressively in all places and in all manner of things. Many of these hawks dream of war against Russia. By bringing Russia, the world’s second most potent military, under heel America would solidify its position as the lone superpower. It would also send a chilling message to more inferior nations: they best not provoke American ire lest they want to suffer an avalanche of steel and fire. Obama is not such a wanton militarist. Not wanting to get involved in wider military engagement unless the outcome was basically assured, President Obama has been a brake on these aggressive, Prussian designs.

    While Barack the Hesitant dallied between war and diplomacy, the Russian leader waited for his moment of decision.  When he saw that Assad was eroding in what had become a war of attrition, he entered the fray to help Assad. Putin turned his air force into Assad’s, attacking ISIL and those like ISIL that America backed.

    This was a calculated risk, an intrepid move. For the first time, American and Russian military aircraft flew in the same theater of war, fighting in part on the same side (both against ISIL), in part as enemies (one in support, one against Assad). Putin now bombs ISIL and its supply and commercial lines with Turkey with a ferocity absent from the American air strikes. In comparison, American strikes have been recreational, not attempting to hit ISIL where it hurts as that would undermine NATO ally Turkey and also turn Assad into a third party beneficiary of Washington’s aerial might.

    Putin wagers that Obama will not try to match Russia’s escalation with an America escalation. Putin believes he has the measure of Obama: that Obama shrinks from the risks attendant togenuine war fought by relative equals. Add heat and Obama is more likely to sue for diplomacy than roll out his bigger guns. Thus far, Putin has been right but perhaps for the wrong reason. Although Obama is risk averse, we should give him more credit for being clear-headed than for being chicken-livered. He realizes much could quickly go wrong. In his constellation of important issues, the risk of regional and possible world war over Syria is senseless. He would have to venture the risk if Israel’s existence was being threatened. To assume such a risk just to unseat Assad would be the acme of professional negligence. It could shred peace to tatters.

    Already too many actors are engaged in Syria. The nation is taking on the attributes of the Balkans before 1914 with more powerful nations seeing important interests in the weak region where no such interests actually attach. The inflated interestsof one power clashed with the inflated interests of another. One assassination struck the match that set all aflame. WWI erupted in this straitened atmosphere, bringing the totality of western civilization to near collapse.

    Barack Obama does not want this insanity on his resume. However, others connive to bring momentous collision about. In shooting down a Russian plane weeks ago, Ankara tried to goad Moscow to retaliate against it. If Moscow had swallowed the bait by responding militarily, Turkey would have invoked the NATO principle that an attack on one is deemed an attack against all. This would have placed the nose of the Russian bear squarely against the American eagle. The world would have taken a colossal stride toward scarlet encounter.

    Thank goodness neither Putin nor Obama ran askew at that critical moment. The two leaders could hardly be more dissimilar. Obama is the skittish intellectual conscious about not fouling his place in history. Putin is the calculating practitioner of realpolitik seeking to etch his name in history by lifting Russia to its former glory as the core of an empire stretching from the Caucasus to the Pacific. While their room for maneuver without losing face is slowly and dangerously narrowing, both have thus far avoided the rash move. In different ways and for different reasons, both are heroes because they represent the last line before peace turns to war. This may not hold.

    Both dislike each other; neither can afford to allow that sentiment to define future actions. They must work together as much as they work apart. Meanwhile, both must fend off hawks in their camps who would like nothing better than to up the ante until the only wager possible is that of war.

     

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