Capitalism & Corruption

Capitalism overfloweth with marketing. It’s fair enough to point out the system never does deliver the goods.

“First and last, it’s a question of money,” Clarence Darrow said. “Those men who own the earth make the laws to protect what they have. They fix up a sort of fence or pen around what they have, and they fix the law so the fellow on the outside cannot get in. The laws are really organized for the protection of the men who rule the world. They were never organized or enforced to do justice. We have no system for doing justice, not the slightest in the world.” 

Not all condemnations of corruption are equal. Certainly, one can and should warn against getting stuck upon ‘corruption’ as a problem of individual moral failing, against assuming that such an individual moral failing can cause our age’s contradictions and crises. Zizek thunders against clerics’ efforts to blind us to the causes of our problems with their anti-historical, idealist framing:

“The first two things one should prohibit are therefore the critique of corruption and the critique of financial capitalism. First, let us not blame people and their attitudes: the problem is not corruption or greed, the problem is the system that pushes you to be corrupt. The solution is neither Main Street nor Wall Street, but to change the system where Main Street cannot function without Wall Street. Public figures from the pope downward bombard us with injunctions to fight the culture of excessive greed and consummation – this disgusting spectacle of cheap moralization is an ideological operation, if there ever was one: the compulsion (to expand) inscribed into the system itself is translated into personal sin, into a private psychological propensity, or, as one of the theologians close to the pope put it: ‘The present crisis is not crisis [sic] of capitalism but the crisis of morality.’”

But you need not simply use the charge of “corruption” as an emotional tool with which to blind, distract, manipulate, and control nearly-powerless subjects, as the conservative Papacy, flexing its enduring utility to feudal power, does to the unsuspecting, the faithful, and the libertarian. Rather, you can, as does Marx, comprehend corruption as an inevitable product of a social order that demands concentrated economic surplus/power accumulation.

“In every stockjobbing swindle every one knows that some time or other the crash must come, but every one hopes that it may fall on the head of his neighbour, after he himself has caught the shower of gold and placed it in safety. ‘Après moi le déluge!’ is the watchword of every capitalist and of every capitalist nation. Hence Capital is reckless of the health or length of life of the labourer, unless under compulsion from society” Marx, Capital, Volume I, Chapter 10 (1867).

It is not that emotion or condemnation is wrong. Emotion is human, and often must be addressed strategically. Leftists would be autistic dupes to let conservatives monopolize emotions, and ridiculous to flatter themselves that to leave emotion to conservatives makes Leftists pristine, ethical…otherwordly, in imitation of imaginary deities, and similarly ineffable, ineffectual. That’s a trap that’s been laid before, and we should recognize it.

The problem is the socially-irrational concentration of the massive accumulation of wealth–capitalism. That is fundamentally corrupt. The problem is, as Zizek recognizes, “Main Street’s” rigid inability to function without Wall Street, to the point of compounding, brakeless social and environmental irrationality. Socialism is needed to break this free-fall, to put a brake on the capitalist corruption of human sociability.

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The How & Why of Privatization Touts

At the Ivies, the students are instructed by only the most high-status, most fail-tastic privatization marketeers (AKA conservative economists) that only the best-funded gentlemen’s networks can float.

How privatization and class warfare is sold to future US leadership: with lies, covering obscene kleptocracy and its further socialized costs.

Note: Larry Summers may have long since lost his royal Harvard throne, but not just because of his sexism (the putative cause) and racist ecological imperialism (There’s that too.), or even just being an evil overlord of the rampant social, economic and environmental mega-destruction that is neoliberalism. Rather, his Harvard departure is likely due to this: Summers decided to use Harvard funds to pay the costs (The US Justice Department fined Shleifer $26.5 million) of Andrei Shleifer’s massive kleptocratic privatization profiteering in post-communist Russia.

Yee-ha! Good ole fancy boys! Creme de la…uh… I’m guessing Summers himself has enjoyed many, many such back-scratching indulgences over the years, and it’s all par for the course for that highly-oiled and polished ruling mafioso. What was that? Did someone mention Goldman Sachs owns the Fed and the US government? You don’t say. Now what were we talking about? Berlusconi?

Harvard University: You will never find a more wretched hive of scum and villainy. We must be cautious.

Geist in the Machine

Arundhati Roy’s “Capitalism, a ghost story” is beautifully written and meaty.

“By calling their tower Antilla, do the Ambanis hope to sever their links to the poverty and squalor of their homeland and raise a new civilisation? Is this the final act of the most successful secessionist movement in India? The secession of the middle and upper classes into outer space? 

As night fell over Mumbai, guards in crisp linen shirts with crackling walkie-talkies appeared outside the forbidding gates of Antilla. The lights blazed on, to scare away the ghosts perhaps. The neighbours complain that Antilla’s bright lights have stolen the night. 

 Perhaps it’s time for us to take back the night.”

Virginia, Meet Financial Capital

This Guardian article shows one way (the divorce between compensation and performance) in which financial capital does not function according to conservative economic theory, with its ideologically-convenient ignorance of human reflexivity and power.

Any reporter worth his salt knows that following Goldman Sachs’ trail of hell-ooze is always worth his time. Greg Palast reports on how Goldman Sachs colluded with Greece’s (former) right-wing government to 1) create the image that conservatives can govern a democracy, which they patently cannot, and 2) screw the world economy and the majority of the people in that economy, for their own unchecked aggrandizement.

Palast, who is selling his book Vulture’s Picnic, deserves to be quoted at length on this overview of the conservative-nursemaided primitive accumulation of Greek wealth:

“In 2002, Goldman Sachs secretly bought up €2.3 billion in Greek government debt, converted it all into yen and dollars, then immediately sold it back to Greece. Goldman took a huge loss on the trade. Is Goldman that stupid?

Goldman is stupid—like a fox. The deal was a con, with Goldman making up a phony-baloney exchange rate for the transaction. Why?

Goldman had cut a secret deal with the Greek government in power then. Their game: to conceal a massive budget deficit. Goldman’s fake loss was the Greek government’s fake gain. Goldman would get repayment of its “loss” from the government at loan-shark rates. The point is, through this crazy and costly legerdemain, Greece’s right-wing free-market government was able to pretend its deficits never exceeded 3 percent of GDP. Cool.

Fraudulent but cool.

But flim-flam isn’t cheap these days: On top of murderous interest payments, Goldman charged the Greeks over a quarter billion dollars in fees.

When the new Socialist government of George Papandreou came into office, they opened up the books and Goldman’s bats flew out.

 Investors went berserk, demanding monster interest rates to lend more money to roll over this debt. Greece’s panicked bondholders rushed to buy insurance against the nation going bankrupt. The price of the bond-bust insurance, called a credit default swap (or CDS), also shot through the roof. Who made a big pile selling the CDS insurance?

 Goldman. And those rotting bags of CDS’s sold by Goldman and others? Didn’t they know they were handing their customers gold-painted turds? That’s Goldman’s specialty.

 In 2007, at the same time banks were selling suspect CDS’s and CDOs (packaged sub-prime mortgage securities), Goldman held a “net short” position against these securities. That is, Goldman was betting their financial “products” would end up in the toilet. Goldman picked up another half a billion dollars on their “net short” scam.

But, instead of cuffing Goldman’s CEO Lloyd Blankfein and parading him in a cage through the streets of Athens, we have the victims of the frauds, the Greek people, blamed. Blamed and soaked for the cost of it. The “spread” on Greek bonds (the term used for the risk premium paid on Greece’s corrupted debt) has now risen to — get ready for this––$14,000 per family per year.”

December 2011 update:

The rich mouth off, concerning what assholes they are. (Hint: MIGHTY assholes.)

Law’n’Order Corrupts Absolutely

Authoritarian Law’n’Order is by its very nature corrupt and corrupting. Here, law enforcement officers relate how they fabricated drug charges against innocent people, in order to meet Law’n’Order quotas.

…Once again proving that you are a bona fide idiot, if you think militarized policing and prison slavery build-up is a concession to the working class and an imposition of firm, fatherly (or feminist. whatever.) order. The working class will pay for each and every police and prison job through the nose and then through every other orifice they’ve got.

Running Unalienated

Here in “The Lost Secret of Running” is 1) a brilliant little story of how capitalism (in the form of Nike) distorts our species being (We are a long-distance running species.) and hurts us; and 2) how to run as if you had a human body. Hint: It’s not how you’ve learned to run, which is to maximize Nike’s profits. Includes a video and stills of human running technique.

It turns out, that if we run like humans, we can run far, and faster, and without pain.

Human running (with some degree of desperation)

Showing more stills of proper running technique, this blog calls 100-up running technique “Chi running”. The technique’s about the same.

In a related story of what happens to food and health when financial capital steps in, here is an article about the blog confessions of a retired General Mills exec.
Need to know how to eat as if you were a human? Check out Michael Pollan.

“Man grows used to everything, the scoundrel”
Fyodor Dostoyevsky

US Tentacles in Ugandan Homo-murderous Law

Bush-regime evangelical clientelism propelled Uganda to the homosexual hate hysteria it currently stews in.

The Rev. Kapya Kaoma, a Zambian, went undercover for 6 months in Uganda, to witness and report that US evangelicals, who thanks to the Bush regime wield enormous power in Uganda, provided the legitimacy and facade of expertise for the promotion of homophobic hysteria in Uganda and the country’s institution in 2009 of a death penalty for gay people.

With the turnover in US leadership, American conservative evangelicals, a major client of the Bush regime, were assured by the Obama administration that they would not face reduced public funding of their “social service” activities, which include campaigning against human and civil rights for gays, and proselytizing for their religious sects in countries like Uganda.

The recent relevation that conservative evangelicals (Scott Lively, Caleb Lee Brundidge, and Don Schmierer) have spurred murderous state policy in Uganda strengthens the case against ending remaining clientelistic relationships between the US state and the Republican clients, as conservative evangelicals had attempted to hide the nature of their activities in Uganda, presenting a more moderate face in the US. It is now much more difficult to see where “compassionate” conservatism ends and barbarous conservatism begins.

But for all their US-side claims to civility, as missionary Scott Lively blogged proudly, his campaign was ““a nuclear bomb against the gay agenda in Uganda.” Or a nuclear bomb against human rights, more accurately.