Controlling Asia by installing and enforcing Middle East tyranny

From Tom Stevenson’s May 2019 LRB review of David Wearing’s Angloarabia (2018):

The Middle Eastern Tyrannies Serve to Allow Anglo-America to Control Europe and Asia

Starting in the late 18th century, Britain installed satraps in the Middle East. Installing and working primarily with the Saud family as its proxy, Britain developed these satraps into monarchical family dictatorships serving as a colonial, geographical flying buttress to the British Empire. What the Middle East primarily offers to empire is great supplies of particularly cheap and high-quality oil, which continental Europe and Asia are dependent upon. The Anglo-Americans that installed and enforce the ruling Middle East tyrannies are strategically independent of Middle Eastern oil. By installing and enforcing a proxy tyranny in Middle Eastern countries, the Anglo-America wing of the Atlantic ruling class quietly holds a knife over the  throats of continental Europe and Asia. Relations between Middle East tyrants and the US and UK are secondarily girded with the re-circulation of oil wealth through arms sales and finance. Moreover, the Middle East ruling class is reproduced through the British military college Sandhurst.

The Costs of Middle Eastern Colonialism

The most terrible, primary cost of of the US and UK maintaining the Middle Eastern  tyrannies is to the 400 million nonelites in the Middle East, from Palestinians to the local population and imported Egyptian and South Asian workers all forbidden democracy, enslaved, surveilled, imprisoned, tortured, and finally, continuously disrupted, traumatized, and dislocated, as the massive US military and the Saudi tyrannies that purchase US, UK, and French arms bombard these populations to maintain absolute control of that region and the leverage it confers over Asia and continental Europe. The Middle Eastern dictatorships draw in fresh supplies of hapless labor from overpopulated Asia and North Africa, which workers are maltreated and soon bombed around the Middle East and North Africa, and onto Europe and the Anglo-American settler states. 11.4 million refugees circulated within the Middle East in 2017, as the global (internally-displaced and cross-regional) refugee population soared in recent years above WWII records to over 65 million disrupted, traumatized, and displaced people (UNHCR 2019).

It is important to understand that these migrant laborers are the wretched unprotected of the Earth. As a recent study by has shown, countries that rely on migrant remittances are more tyrannical rather than less (TBD).

A second cost with far-reaching antidemocratic implications is the reverse control, beyond support, that the Saudi dictators exert over their colonial patrons, as the huge profits of oil secured by the absolute control provided courtesy of the American military sloshes around within the colonial relationship. The Middle Eastern tyrants’ piling wealth is used to prop Anglo-America financially, with anti-democratic results: 1) Chicago darling Monica Prasad tells a sweet, mendacious story of financial innocence, starring Nixon defying the French, taking the dollar off gold, and finding to his “surprise” that the financiers of the world rushed in with cash to support the US as the global financial center. The truth is that financiers had been organizing to deregulate finance from the moment FDR regulated it (Fridell & Hudson 2010), and they accomplished deregulation quickly in Britain (Blyth 2002), which served as global finance’s power base. Defying France wasn’t completely a Nixonian feat of capitalist solidarity and faith, the dollar backed by aught but heroic, immaterial financial speculation. While Nixon was being cut out of power in 1974, US treasury secretary William Simon arranged with the Sauds for the Middle Eastern tyrannies to back the US dollar with their all-too-materially-based oil revenues (Spiro, David. 1999).

Saudi support accomplished a lot, a lot on behalf of finance and military. It enabled the US to continue military expansion, and provided the additional independence to Wall Street-City of London finance it needed to maintain inflation as capital strike and liquidate and privatize the working-class accountable state in the US and UK. Backing the US dollar with Middle East oil permitted the reversal of democratic gains in the US and UK, enabling neoliberalization as the conservatization of liberalism as well as the Nightwatchman State militarization of the US and UK. Swiftly deprived of state institutions supporting working class organization and democratic citizenship, the US and UK working classes were converted from an indirect brake on finance and war into a militarized police force topped by a management class, all with no capacity for independent organization. 2) The Middle Eastern tyrants ostentatiously finance the City of London as a global elite real estate holding, an ever-more gilded hole in which to hoard rents far away from the excluded 99% of humanity. This has become a decadent urban model throughout the world, proliferating not just inequality and inegalitarianism, but housing and transportation poverty as well. 3) When the unregulated Anglo banks were self-aggrandizing, self-deluding, and profligate in the 21st century, it was the Middle Eastern tyrants that bailed them out and allowed them (including Barclays) to avoid economists’ beloved moral hazard reckoning. The Middle Eastern tyrants make Too Big to Fail work. The Middle Eastern tyrants maintain the lack of regulation over Anglo-American finance. The significant secondary costs of Middle East colonialism accrue to core capitalism’s vast smallholding class and to democracy.

Is the Middle Eastern Tyranny Indispensable?

The one flaw of Stevenson’s account is the notion that the primary, humanitarian cost (with its immigration impacts) could be reversed if only the US encouraged Britain’s satraps to behave more kindly. Stevenson lays the blame for this great, rolling imperial disaster squarely on the shoulders of the US, on account of the US’s general barbarism and ignorance. Would that the British could manage everything absolutely, surely they would restore a kinder, gentler colonialism. Though the Anglo ruling class didn’t maintain a kinder, gentler colonialism from the late 18th century up to 1943, when the US joined Britain in bankrolling the Saud’s war on the Gulf, nor up to 1971 when Britain was no longer able to cover the costs of the Gulf military protection racket and transferred the military economy over to the US. Invoking the beloved liberal political-science phantasm of socially-rational state bureaucrats (This may be the sensitive Anglo elite v. US barbarian contrast that liberals and Anglos are imagining as the norm.), perhaps Stevenson has in mind that the UK could finally volunteer to be the benevolent dictator today that it formerly failed to be, and the US fails to be, and that it’s the US that forces the UK to continue to maintain the enabling military support the Gulf States rely on to crush democracy at home and abroad. It seems the British terror of US barbarism is real and not just performative, and yet surveying history as well as contemporary imperial relations (For example, to forestall an Iran-style revolution, “Britain equips and trains the Saudi police force, has military advisors permanently attached to the internal Saudi security forces, and operates a strategic communicaions programme for the Saudi National Guard.”), it is difficult to see how the British offer a positive alternative protection racket, any more than capitalist Russia offers “multipolarity” (distinct from patronage for a handful of political scientists).

Maybe the problem is that the Anglo-American ruling class is too tight. Maybe the recursive jackboot could be eased by splitting the US and UK’s territory in the Middle East, creating a sort of Anglo-American multipolarity. Maybe that’s what a powerful state would do, if it actually valued and pursued humanitarian goals. Both the Obama and Trump administrations suggested publicly that the US has the strategic latitude to cut out the middle man. Presumably if the UK and the Middle Eastern tyrannies attempt to exert too much control over the unholy imperial alliance, the US could roll up its military and, following Nixon, treat directly with the East Asian states, what Stevenson refers to in alarm as “the Asian plot.” Curiously on the affronted Saudis behalf, Stevenson warns US strategists that with climate change, Middle Eastern tyranny affords more precious control over East Asia than ever.

So many questions open up. Does the US need the UK and its colonial satraps as much as they need the US? With this perhaps small or merely-symbolic divergence in UK and US interests in mind, it would be interesting to assess the indispensability of the Middle East tyrannies, within them distinguishing alignments with the US and UK, versus the relative strength of the US’s v. UK’s coercive ties and alliances with China. Certainly, within the British Commonwealth, Canada and Australia have been integrating with China. Why are UK partisans so keen to keep space between the US and China? How do the US and UK interests align with or diverge from China’s interests?

How do US and UK interests diverge from each other, not just in arms sales (The Middle East tyrants are the world’s largest buyer of military equipment, and the US, UK, and France compete with each other to bribe them.), but particularly in finance, as its independence is propped and wagged by the Middle East tyrants? Yes, Saudi oil wealth maintains the US’s war economy, and absolute libertine finance in both Wall Street and the City of London. It helpfully dismantles democracy in both the US and UK. Yet are the Saudi dictators necessary to controlling East Asia, putatively their primary role? The British assure us they are. But can the US exert sufficient control over East Asia in its alliance with the Israeli and Egyptian tyrannies, and by colonial dominance over Iraq, Afghanistan, Syria, and perhaps Yemen and Iran? (Note: Check out Sunni v. Shi’a alignments.)

A League of Innocent Tyrants

I do not think that the British Empire fell quite as gracefully, in the early 20th century, as is commonly told. The story goes that the expense of WWII was the end of the British Empire, and the transfer of Atlantic ruling class leadership to the US as well as the granting of Indian independence. And it’s true that the locus of power shifted within the Atlantic ruling class family coalition, but did not completely retract from the UK. The Atlantic ruling class is a robust, inbred alliance, and it commands enough of world wealth to grease its internal conflicts. However, together with 20th century financial history, UK-US relations in the Middle East reveal fissures within that robust league of imperialists.

See my brief account UK v. US states and finance from the 1950s – the early 1970s, in “6 Pivotal Class Collective Actions in the US in the Second Half of the 20th Century.” To preserve its power, Britain deregulated finance in the 1950s. This deregulation provided US and global finance extra degrees of tactical freedom and leverage over the US state, including the power to enforce inflation as a form of capital strike. Indicative of solidarity within the UK ruling class and a lack of solidarity between the UK’s rulers and a then-fractured US ruling class, US political leaders did not grasp that the US state had been subordinated to international finance until Nixon was brought down in 1974, a couple years after he inadvertently demonstrated, with state-coordinated price control boards, that (finance-coordinated) capital was manipulating inflation to end US state accountability to the working class (See Blyth 2002: 135-6).

Contrary to much-circulated conservative theorization, inflation was not simply caused by the working class, or even the US’s imperial wars against SE Asians and the OPEC oil embargo (from which the UK was secretly exempted, see Stevenson p. 11). The results of the price-control boards clearly showed that capital was intensifying domestic US inflation, which indicates that capital had heightened coordination and strategic capacity, a capacity typically provided by deregulated finance. With Nixon serving as the publicly-flayed goat of American provincial political miscalculation, the US political class was deeply embarrassed, cowed, and fully chastened for decades, bound to faithfully serve finance and military in exchange for top-manager income and financially-advantageous marriages for their daughters, until the rise of socialists over the last couple of years.

Not only running the 1973 OPEC oil embargo and adding to US inflation panic, the Saudis were right there throughout the 1970s, supporting US imperialism, US and UK de-democratization, and a financial hegemony that turned the City of London and New York City into powerbrokers and international elite real estate enclaves populated inter alia by Middle Eastern tyrants and Russian oligarchs. The Saudis switched from the British currency, pounds sterling, to the US dollar in 1971, when Nixon took the US dollar off the gold standard to defy anti-imperial runs on US gold reserves. Three years later, in 1974, while Nixon was being removed (arguably more for his presumption of state capacity than for his connivance with petty political party crimes revealed by plucky newsmen), in an agreement with the US Treasury Secretary William Simon, the Saudis infused US finance with oil revenues to again back up with material wealth the speculation-backed US dollar (Spiro 1999).

 

Bibliography

 

Blyth, Mark. 2002. Great Transformations: Economic Ideas and Institutional Change in the Twentieth Century. Cambridge.

Fridell, Mara and Mark Hudson. 2010. “Financialization, Enabling Policy, and Elite Policy Networks.”

Schenk, Catherine R. 1998. “The Origins of the Eurodollar Market in London: 1955-1963.” Explorations in Economic History 35: 221-238.

Spiro, David. 1999. The Hidden Hand of American Hegemony.

Stevenson, Tom. 2019. “What are we there for?” LRB 11, 9 May.

Wallich, Henry C. 1971. “One chance in a generation: Guideposts for the Commission on
Financial Structure and Regulation.” Journal of Money, Credit and Banking 3(1): 21-30.

Wearing, David. 2018. Angloarabia: Why Gulf Wealth Matters to Britain. Polity.

 

 

 

 

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Capitalist Primacy

“Britain can be conceived of as the first fossil-fuel-led market civilization with a rising money supply (Central-bank-issued money representing global expectations of and co-optation into its network of private financiers’ future power accumulation,) backed by the surplus energy capacity provided by its (social reproduction-disruptive, inegalitarian social relations, consequent forest depletion and) reliance on coal.

Expanding the money supply–as in France, Spain and Portugal–without adding manufacturing capacity largely resulted in rising prices for a limited amount of goods” (Di Muzio, T. & M. Dow. 2017).

Britain’s 1694 Central Bank moment was replicated in the 1971 Nixon move removing gold backing from the US dollar. Both constituted empire brinkmanship that successfully secured the subordinate cooperation of global wealth owners who in turn controlled non-owners.

Nitzan & Bichler (theorists behind Di Muzio & Dow) are motivated by their aversion to the labour theory of value, and their analytical preference for elite perspective. So I think their critique of Marxists is as usual worthless, because a central point of Marxism is to understand capitalism from the perspective of its mass of expropriated, exploited/discounted, abjected, but still somehow necessary peoples.

With elite-centric theory, the mystery remains unaddressed: The masses are still economically necessary and vital. Elite theorists don’t understand why. Why do elite theorists believe in plutonomy while also believing in the necessity of population growth?

But I think Di Muzio & Dow can be shorn of their anti-labour theory of value tic, to better effect.

They remain academic anarchists, though, and that means that another main objective for them is demonstrating that the state = capitalism, and recommending that all political strategy fall out from there. To do that, they methodically eschew comparative method and most of political sociology findings, and instead reify a British case study. Britain, as Meiksins Wood showed, is capitalism’s premier state, and in an expanding, coercive *accumulation* system (as Di Muzio & Dow show it to be), the premier position is an exceptional position. What Di Muzio & Dow have shown is that Britain’s state = capitalism. That implies a whole ‘nother ball of strategy.

It would be intellectually and strategically irresponsible to ignore all the Marxist-inspired comparative work on state variability and development/stunting in relationship to Anglo-centric global capitalism, to produce a one-size-fits-all story that certainly misrepresents state-society relations in other parts of the world, and may well distort even empirical, actual, and real state-society relationships in Anglo resource-extraction management zones like Canada.

See also: Desan’s “Making Money” is a fantastic book. History of British currency from Anglo Saxon times until ~1700.

Extractivism & Universities

The late 20th century was full of analyses of the growing post-secondary education market. These analyses came to the simple conclusion that the role of the university in society was growing and so with it, opportunities for good careers in scholarship. Democrats imagined a world of increasingly-civilized middle class people.

But scholars are not very organized. Meanwhile, financialized capitalism does organize managers and surveillance software commerce. Organization, it turned out, was the relevant variable.

Fast forward 30 years and now post-secondary education budgets, derived from both states and individual families, serve many economic purposes, from hosting the managerial labour market to the marketing labour market to the accountanting labour market, to construction industry and the surveillance software industry, and on to immigration screening and prep.

To accomplish this reorganization, most of the unorganized people undergoing the extensive and intensive education regime to become doctors of philosophy and scholars were converted into cheap, just-in-time, deskilled front-line service workers.

As conservatives identified, universities were in the business of rent extraction. The problem is where the rents come from. With neoliberalization, rents would be extracted from students’ families and scholars, rather than the tax-paying public, identified as the Trente Glorieuses source of rents in conservative economists’ shaky political revision of the rents concept.

This conversion to mining scholars makes lots of sense in a financialized era: As food pulp becomes an underlying commodity market securitizing financial rents on ag land, post-secondary education was converted into a commodity market undergirding managerial, marketing, financial, software systems, and construction rents.

In addition to securitizing financial and other rents, universities are also managed to provide auxillary services in support of capitalist social reproduction. From their traditional low-key side role supervising young elite men working through the often-rough early transition to adulthood, professors have been saddled with more and more extreme, unpaid, consuming social reproduction job responsibilities. Extreme odd jobs foisted upon professors in the neoliberal era include: 1) serving as an unpaid part of immigration gatekeeping, by helping attract, weed and secure skilled labor; 2) serving as an unpaid part of the university front line “accommodating,” AKA insufficiently providing caretaking services to young people with mental illnesses and sometimes suicidal tendencies. This additional responsibility requires reconceptualizing not only the professor-student relation as a form of crisis comms management, but also the classroom–not as a collective learning environment, but as an optional venue for amateur psychological and social group experiments;  and 3) grant writing for public scholarly resources in order to both fund university rentiers and deploy young female students in symbolic support of the blasted, tattered social reproduction of dis-organized, racialized and poverty populations.

All this semi-official, multi-layered, inefficient and inappropriate redeployment of scholarly workers within the neoliberalized university is of course a symptom of core capitalism’s incapacity to simultaneously foster economic growth and the life conditions of economic growth. The borders have been militarized. The public mental health institutions dismantled. The students are supposed to take on debt to do post-secondary education work full time while doing remunerated junk jobs full time while lurching into young adulthood. The welfare state has been hacked back down to Nightwatchman Poor Laws. O, the abstract/elite liberty. Professors are serving as free immigration guard labor, amateur psychologists and social workers, and amateur social-work managers, and they’re doing that on top of their academic responsibilities simply because they have been identified as a remnant capable population of workers. Tenured professors are still capable because they’re getting paid just enough to live with only the crisis of overwork, while the rest of working families are drowning in crisis.

This proletarianization of a disorganized people who deferred income, and took on debt, in order to attain semi-sovereign and self-developmental work, is the function of management and surveillance software firms, which tend to be integrated. The proletarianized scholars tend to come from poorly-networked social backgrounds, such as working-class families, or they are female and subject to reduced credit and cooperation within the decent-compensation, semi-sovereign labour market.

Immigration and university privatization culturally cement this top-down-led reorganization. The internet abounds with triumphant stories, in extremely non-proficient English, of international students who were “friends” with the Anglo or American university chancellor or president (A friendship only possible above a very high wealth bar.), students who declined to do the work for a class, got a grade that inconvenienced them, and summoned their class network to kick the professor’s “ASS out into the gutter.” Global consumers clearly perceive this to be a global upper-class mafia age.

Scholars who study academia have reminded me to never forget that administrators see scholars as strictly “peasants.” That labour-disciplining, aristocratic entitlement culture, the expectations of servitude and expropriation, trickles down to the credential consumers, aligning them with the university’s internal and external array of gape-mawed rentiers in management, marketing, construction, finance, R&D, intellectual property rights, and surveillance software (including course/immigration skills-evaluation and testbank software, accounting software, classroom-allocation software, performance metrics and evaluation software, and consumer satisfaction metrics).

The culture is further amplified amongst those competitive academics with a system-gaming orientation.

 

Dysfunction-function junction

“Hamilton-Paterson sees the destructive impact of the ‘money men’ on industries more clearly. The catastrophic and unnecessary fate of ICI (which broke the hearts of some of my own chemical-engineering relatives) came about as men and women with long shop-floor experience and technical qualifications were pushed out of management by newcomers who claimed to be financial wizards. They weren’t. They played the great corporation for short-term stock-market gains, and they lost.

Hamilton-Paterson adds the example of Network Rail’s bungled electrification of Great Western (its cost rose in two years from £874 million to £2.8 billion). ‘That’s privatisation for you: layers upon layers of managers and accountants who know nothing about railways. The old British Rail alternative was layers upon layers of experienced railwaymen who knew nothing about accountancy but who did know exactly what electrifying a line entailed and simply got on and did it.’ Later in his book, he attacks the notion (‘holy writ’ today) that a college degree in management enrols one in a portable profession in which it hardly matters what a company does.”

Neal Ascherson, “As the toffs began to retreat” LRB 40(22).

If your goal is to play the institution housing an accretion of wealth–the corporation, or the privatized public good/service–for stock-market gains, then it very much doesn’t ever matter if you accomplish any substantive social or environmental goals.

“People talk easily about political ‘consensus’ in the postwar years. Edgerton disagrees. There was no lasting consensus between the parties on the welfare state, he says, and the idea of a ‘Butskellism’ common to Labour and Tory is a myth. Only for the ‘warfare state’ was there a consensus, to keep its secrets and to pay its vast bills. Britain’s hugely profitable arms trade is an enduring by-product of that state, and here Hamilton-Paterson contributes an unsettling thought. ‘It is the arms industry perhaps more than any other that best preserves the inventive standards and traditions of British engineering, research and technical expertise.’”–Ascherson

6 pivotal class collective action moments in the US, second half of the Twentieth Century

…that led to the complete evisceration of the US working class’ capacity to contribute political leadership,[1] and thus stripped the US of capacity for public good, and stripped the nation from the state. This dismantling of US social and state capacity resulted in the triumph of charismatic-front direct capitalist rule in the US.

1)    No political party organized labour, or built working class collective action capacity across the US

By contrast, the Social Democratic Party (SAP) in Sweden methodically propelled itself to political hegemony by first and foremost working to build unions and a labour movement in Sweden.[1]

In 1930s Minnesota, the Farmer-Labour party had similarly worked with organized and state management radicals to build worker collective action capacity, including with anti-racism programs, and power resources; but on altruistic behalf of anti-fascist solidarity, the national Democratic Party took over and dismantled the Farmer-Laborers in WWII.[2]

While this strategy eventually provided Humphrey, Mondale and Freeman the political force to oust the controlling Southern slaver Democrats from the Democrat Party–to the benefit of the Republicans, and so permitted liberals to use the Democrat Party to help leftists reduce some of the apartheid features of US society at the tail end of the financial regulation era, the victory was pyrrhic. The deregulation of finance was soon to undercut desegregation by restoring inegalitarianism and Herrenvolk democracy, inequality and economic scarcity, and labor import substitution.

Why is this pivotal? Where the Swedish Social Democrats built working class cohesion and collective capacity, and a strategic radical organized edge to “moderate,” state repression of communists shut down the working class’ capacity to organize, institutionalize, and coordinate external-internal (social movement-polity organization) strategy, preventing labor autonomy, cohesion & collective action capacity, and power resources development in the US.

In comparison, in Canada, during WWII when the Atlantic ruling class required labor cooperation but Canada did not have strong policing capacity, the state prioritized targeting and imprisoning (especially labor-organizing) communists, while developing legislation to channel wildcat strike labor eruptions under liberal, labor-policing professional, bureaucratic unions.

Because policy tends to be shared and it is well known that significant resources were devoted to repressing communists in the Atlantic ruling class’ nation-states, evidence from Canada supports Kolin’s (2017) historical research conclusion, suggesting that under historical conditions more favorable to the establishment of labor power resources, the US shared and pursued the communist repression priority as the keystone in the Atlantic ruling class’ broader labor-repression strategy. Without communist organizers, the American working class could not build an effective inside-outside strategy capable of supporting labor political capacity to advance the public good.

Against the capitalist hegemony that only states and labor cause economic decline, no ideas. laws,[3] policies, or institutions capable of moderating and directing capital for the public good, capable of countering both regional and international capitalist strategy, could sustainably develop in the US.

2)    Instead, professionalized policing targets, represses labor collective action capacity in the US

In addition to the communist repression priority as the keystone in its broader labor-repression strategy, the US and its capitalist class had built up and continued to amass strong public and private policing capacity with which to repress labor and prevent the development of working-class power resources. The US was able to further minimize class compromise, minimizing the development of robust labor rights law and labor-policing unions. The combination of exclusive union representation, mandatory agency fees, no-strike clauses, and “Management Rights” TM were until 2018 the foundation of (the peculiar and now dismissed) American labor laws.

Bereft of an organized radical edge, professional organized labour, as structured by Anglo-American law, mainly served to police its own members, forbidding and punishing collective action and strikes.

In the latter 20th century, after the global capitalist mid-century demonstration of finance’s power (coordinating capital and enforcing inflation until US politicians submitted), Democrats as well as Republicans devoted their efforts to policing and cutting down vestigal unions and labour cohesion and communication capacity.[4]

Why is this pivotal? Deeply-crippled working classes made the US (and UK) a beacon for global capitalist investment support, the basis of the “Trickle Down” claim that exclusive elite liberty and rule can contribute to the larger “club society” (Therborn 2017) economic welfare.

Obviously, while the US (and UK) rose to global prominence on the backs of slavery, colonial genocide, and other forms of terror visited upon working class peoples, there is a profound, venerable debate over the value of Herrenvolk democracy (Losurdo 2011) as it broadly cripples human development while attracting resources distributed to reinforce economic, political and social inequality and ecological entropy (Climate crisis). At best, Herrenvolk democracy broadly fosters lotto-mentality dispositions that occasionally throw up anti-social, risk-affine fresh recruits to the benefit of ruling class reproduction, and, in the conservatized-liberal Hobbesian spirit, it manufactures exclusive, strong militarized state capacity, and in that sense, a protection racket worthy of Great Apes.

3)    Anti-communist campaigns left a flaccid, rudderless, unsustainable liberalism[5]

Why is this pivotal? The US was incapable of sustainably governing global economy as a democratic country because (see Geoff Mann, 2017, In the long run we are all dead) liberal leadership only fleetingly, unseriously entertained the notion that capitalists need moderation, which requires strategic labor capacity and power resources. Communists would have been needed to maintain such a counter-hegemonic vision, to coordinate a robust, complex labor organization structure including both multiple levels of institutionalized, multi-dimensional power resources (in unions, union federations, and the state) and agile disruption capacity.

While it arose with a spectacular democratic revolution, the US collapsed into a frail, senile liberalism requiring extensive conservative buttressing and a humiliating return to slavery ideology and institutions, which the media, the police institutions, the carceral institutions, the militaries, elite US academia, and the US judiciary and its conservative constitutional law supply to the global Nightwatchman state that has replaced the nation-state.

4)    1955-1963 the UK deregulated financial speculation, enabling currency speculation on the dollar.[6] The US state did not shut the deregulation down.

The UK deregulates finance, breaks US state-US capitalist alignment

Why is this pivotal? Because the US’s global job, per Bretton Woods & the Marshall Plan, was to direct capital into productive activities, economic growth. This required, inter alia, repressing global finance’s capacity to coordinate and direct capital. In this, Keynesian economic theory tentatively broke with the conservative economics tradition. Keynesianism in its boldest hour assumed distinctively that not just states, and not just labour, but capital can cause economic problems and crisis, especially since (per Smith 1776) it is capable of exclusionary, excessive cohesion capacity and power concentration.[7]

All the other countries stuck with the plan. But Keynesians were elitists; ultimately, their fear and loathing of the working class crushed their innovative but wavering resolve to moderate capitalist power (Mann 2017). When the UK subverted financial regulation from 1955-63, partly in order to maintain global financial power in London, it cut the US state’s alignment with US capital, and ended the US state’s capacity to manage capital at all.

While the US had supported the UK’s financial deregulation as a way of removing war expenditure pressure on the dollar, US capital was immediately organized into an inflation crisis campaign targeting the US’s inflation-vulnerable “strength” at the center of global capitalism: The dollar as the currency of exchange, and the US’s assumption of repressive imperial warfare.

Although ceteris paribus, cheapening money can reduce money lending returns in favor of borrowers, ceteris was not paribus. After decades of state regulation of finance, state deregulation of finance allowed finance to gain the global system-regulating upperhand as the quantity of global money flowed into the banks, offsetting the decline of individual units of money, concentrating and coordinating capital.

Sponsored conservative economists were loosed to develop policy intervention models again based on the Atlantic ruling class (Van Der Pijl 2012) belief that only states and labor hurt the economy (Blyth 2002). A fearful, chastened liberalism shrivelled and crawled back into the womb of conservatism.

5) In the early 1970s, after Nixon’s corporatist pricing board demonstrated that capital could stabilize prices, capitalists, coordinated by finance, refused to do it voluntarily.[8]

Boss Battle: You’ll have your inflation & you’ll eat it too

Despite emerging from and influenced by an era of state semi-autonomy, Nixon was an ideological pro-capitalist. He shrugged. Why is this pivotal? US capitalists collectively jacked up commodity prices as Saudi Arabia (Britain’s long time satellite.) led OPEC to jack up oil prices, creating a heightened inflation crisis and hysteria throughout the US. With the help of conservative economists, capitalists maintained that this inflation was the sole fault of the US state and American labour, meaning that American labour would have to be completely repressed and the US state–the state’s institutionalizing, coordinating, legal and police coercion, and resource distribution capacity–would have to be completely captured by capitalists.[9]

Liberalism and its Rule of Law ideal (“Judicial Activism,” it was then-derided by conservative jurists and comms pros) were left desanguinated corpses in the US, though the state’s institutions were still embedded with and surrounded by armies of liberal lawyers and bureaucrats. The next steps would be the conservatization of those managerial forces, the denunionization and the demeaning of the US working class, and the import substitution of a new, un-enfranchised labor force.

6) From Nixon on, US state efforts to use policy and institution building to mediate capitalist interests with societal interests (OSHA, the EPA, a Fed independent of Wall Street, state responsibility for directing new economic sector development, etc.) were killed or occupied directly by unfriendly capitalists.

Charismatic Reagan was propelled into the front of the Executive to host the Republican restoration of direct capitalist rule over US institutions.

The Dem Party’s only response, from the liberal repertoire, was to sell itself as a “Credible” organization that could more conveniently (than direct rule with charismatic fronts) be delegated the management of capitalist interests.[10] From the conservative (Public Choice) repertoire, the Dems could extract rents for this convenience service and the reassuring, resonant professionalism they performed for international audiences in capitalist countries with semi-independent professional states and remnant liberal institutions. But the neoliberal Dems’ convenient, performative professionalism has offered no value-added for working class Americans–on the contrary, even contributing and managing policies to disorganize and police the American working class, and usually, precious little value-added for regional and global capitalists.

Why is this pivotal? Blanket-policed by their employers, professional unions, political parties, and the police, American labour rapidly realized that they had no collective action capacity and no institutional power, not even in the state. Further, culturally, intellectually, labour would only be conceptualized as an economic problem to be targeted.[11] Without any labour power resources in the US, US and global capitalists were liberated to absolutely, directly run the country (with the currency and the military) at the center of global capitalism.

If not permitted the full range of human collective capacity, American smallholders and working class people were allowed to work ethnic, racial, religious, and gender identity networks. They could align with the Credible Delegates Party or they could align with the Charismatic Direct Capitalist Rule Party. As time, repression, and inequality marched on, it became evident that it didn’t matter. Working class Americans and smallholders would get nothing—padded with crippling law and policing, economic disruption, precarious exploitation, debt, criminalization, incarceration, disenfranchisement, pollution, alienation, racialization, sexual assault, shame, and contempt.

Charismatic Direct Capitalist Rule in the US

Trump, as a charismatic capitalist ruler, offers a wink, a little reality teevee strum und drang, a little business shock ‘n’ awe, a little commedia dell’arte to symbolically lighten the inescapable burdens carried by hundreds of millions of Americans, workers and their guards, managers, and owners. Along with powerless labour, they still have guarding, policing, and incarceration economic opportunities, military national socialism, access to beautiful public lands, lovely climates, remnant infrastructure, and more, slightly higher- quality commodity goods than much of the world. It could be worse…

[1] Blyth 2002, Chapter 4. From Blyth, Mark. 2002. Great Transformations: Economic Ideas and Institutional Change in the Twentieth Century. Cambridge.

[2] Delton, Jennifer. Making Minnesota Liberal.

[3] Glasbeek 2017.

[4] Murakawa 2015, etc.

[5] Kolin, Andrew. 2017. Political economy of labour repression in the United States. Lexington Books.

[6] Schenk, Catherine R. 1998. “The Origins of the Eurodollar Market in London: 1955-1963.” Explorations in Economic History 35: 221-238.

[7] Per Smith 1776.

[8] Blyth 2002: 135-6

[9] Blyth 2002, Ch. 5.

[10] Blyth 2002, Ch. 6.

[11] Blyth 2002.

[1] As observed in Gilens & Page 2014.

WWII & the twilight of Western Enlightenment

AT the turn of the 20th century, ruling classes mobilized nation states to struggle for territorial control and economic development, while working classes struggled for emancipation

From the 16th century, the Atlantic ruling class (the ruling class of Britain, the Netherlands, the US, France, and other North Atlantic territories) successfully ascended to world power through a potent combination of capitalist relations and primitive accumulation, including enclosures, global imperialism and colonialism, and slavery. By the turn of the 20th century, both German and Russian networks were left out of this power ascent, stagnant but still latently capacious and entitled. They had long-influential ruling classes managing and intervening in European territories. Where Russia had dwindled from Enlightenment and power influence to supplying mercenary militaries to the ultimately-losing European ruling class repressions of democratic revolts, German society had lost its influential long-time role supplying the educated, princely managerial staff to European monarchies.

Communists overthrew the dissolute Russian monarchy network, and mobilized massive and disruptive economic modernization campaigns across the Soviet Union’s vast Eurasian territory. German territories attempted to correct their over-investment in European aristocracy by reorganizing as a militarized nation-state mobilizing strong managerial and productive capacity. To carve out territory in an already-owned world required warfare. While the Atlantic ruling class has had enormous capacity to absorb other ruling elites, it has not accommodated them, with the exception of the semi-independence concession to Middle East absolutist tyrannies ruling keystone geopolitical and oil extraction territory. When upstart Germany lost WWI, the Atlantic ruling class sought to crush an independent Germany and the German sense of entitlement with the Treaty of Versailles. This vainglorious effort only produced more outraged re-organization in Germany, spawning the fascist campaign to put Germany on the global capitalist map.

Germany’s reactionary, anti-socialist fascism at first was thought to be compatible with the anti-communist Atlantic ruling class order. For seven years, from 1933 to the September 1939 invasion of Poland, the capitalist Atlantic ruling class had agreeable relations and multiple pacts with the pro-capitalist, anti-communist fascist regimes, including Nazi Germany. During this period, the young Soviet Union had been struggling with imperial, fascist Japan, which was invading China.

13 Nation-state Compacts with Fascist Germany

YEAR SIGNATORY COUNTRIES NAME OF PACT
1933 UK, FRANCE, ITALY THE FOUR POWERS PACT
1934 POLAND HITLER-PILSUDSKI PACT
1935 UK ANGLO-GERMAN NAVAL AGREEMENT
1936 JAPAN ANTI-COMINTERN PACT
1938 SEPTEMBER UK GERMAN-BRITISH NON-AGGRESSION PACT
1938 DECEMBER FRANCE GERMAN-FRENCH NON-AGGRESSION PACT
1939 MARCH ROMANIA GERMAN-ROMANIAN ECONOMIC TREATY
1939 MARCH LITHUANIA NON-AGGRESSION PACT
1939 MAY ITALY PACT OF STEEL (FRIENDSHIP & ALLIANCE)
1939 MAY DENMARK NON-AGGRESSION PACT
1939 JUNE ESTONIA NON-AGGRESSION PACT
1939 JULY LATVIA NON-AGGRESSION PACT
1939 AUGUST SOVIET UNION MOLOTOV-RIBBENTROP NON-AGGRESSION PACT

A side product of Britain’s imperial expansion and its opposition to Russia and that country’s power, Polish and other weaker-community nationalisms surged in the 16th century. Russia and Poland then struggled for territorial control, with Russia controlling the territory from the 18th century until Russia’s collapse after WWI. By contrast, the Atlantic ruling class gained further power after WWI, taking control over former Ottoman Empire territory and populations.

In August 1939 Germany made an opportunistic, temporary alliance with the Soviet Union and Slovakia to re-take Poland and divide it. Britain and France had a post-WWI pact that should Poland be invaded, they would regard the invasion as an act of war against the Atlantic ruling class. Polish gold was smuggled out to London and Ottawa. In reclaiming territory, the Soviet Union was again acting independently of the Atlantic ruling order, and so was a categorical enemy. But the geopolitical crisis was a fascist state acting independently of the Atlantic ruling order. In an already-owned world, German economic development intolerably forced both (temporary) capitalist-communist cooperation and a dis-identification between the Atlantic ruling order and capitalism.

While the Atlantic ruling class has remained in fairly-constant geopolitical opposition to Russia (regardless of its government), British sponsorship of Polish and Eastern European national ambitions has been rather more opportunistic than a primary goal. It is the Polish (among other Eastern European buffers) nationality’s perspective that the Western powers “betrayed” their sponsorship agreements in 1939 (inter alia), as the North Atlantic powers allied with the Soviet Union to fight WWII, to stop Germany’s further territorial invasions and expansions. The Soviets ground down the imperial German war machine; and the Soviet Union’s gambit to reduce the Atlantic ruling order’s combined anticommunist and geopolitical opposition was thus soon played out.

British war leader Winston Churchill hoped to simply redirect WWII against the Soviet Union upon Germany’s defeat in April 1945. But British analysts concluded that the Atlantic powers would not be able to defeat and control the Soviet Union’s territory via direct warfare. So, in another “betrayal,” Churchill and Stalin divided up the former Austro-Hungarian borderlands (the Austro-Hungarian Empire collapsed in WWI), from 1945 until the modern Russian communist experiment was liquidated in 1989 under the co-optative idea, and a patently false and geopolitically-naive expectation, suggesting that simply by dissolving communism to the benefit of oligarchs, Russia would become included and supported as an autonomous capitalist country in the North Atlantic metropole archipelago, much as Germany, Italy, and Japan had been under the redistributive Marshall Plan. But in that North Atlantic, states had since largely been claimed by a financially-liberated, cosmopolitan ruling class, and that class already had a capitalist relationship with the great reserves of Chinese and Indian labor, resources, pollution sinks, and consumers. Nor was it possible for even-oligarchical Russia, with its broader social networks and infrastructure, to be integrated into the Middle East tyrants’ efficient, special relationship with the Atlantic ruling class.

Since then, the Atlantic ruling class has pursued an oppositional relationship with Russia, offering instead the City of London as an increasingly-posh haven for the Russian klepto-collaborators and their booty, the once-public wealth accrued with brains, blood, sweat and tears within the Soviet Union territories. A globally-networked, cosmopolitan ruling class with key bases in North Atlantic financial cities and countries currently enjoys the restoration of its undiluted, unrivaled power, as well as steep and immobile social hierarchy and all its effects. As billions of people are surveilled, policed, incarcerated, militarized, exploited, poisoned, dispossessed, violently disrupted, and dislocated into spectacular migrations, outside of continental Europe, aristocracy and servitude have been restored. Western Enlightenment ideas, culture, and institutions have fallen, but the extraction and slavery infrastructure remains and has been technologically enhanced.

Thus, while there are still states and of course market institutions managing cosmopolitan extractivism and the social reproduction of inegalitarianism, with the eradication of Enlightenment thought and institutions, nation-states have been reorganized as rigid, stagnant Night-watchman states. Nations are reserved for the industrializing countries.

Loyalists: Anglo Anti-intellectualism

The maintenance of a close connection between the embourgifying British aristocracy and the mid-19th century men of arts and letters in Britain

“was seen by the Russian Communist Dimitri Mirsky as implying that ‘the intellectuals made no attempt to think independently of their class, but rather were proud of belonging to it. In short, there were no intellectuals.’…It seems broadly true that, to a far greater extent than was true in France or Germany, not to mention Russia, in Britain mid-Victorian cultural figures tended to be literary or scientific, thus strictly speaking falling outside the sort of intellectual category necessary for a truly hegemonic politics. Moreover, even as they remained closely tied to the ruling class, which was for the great majority their class of origin, they did not, like traditional intellectuals, form a separate social category with an independent institutional structure of its own” Desai 1994: 44.

Here Desai is discussing how the aristocratic-based and aristocratic-values-proliferating British Romantic literary movement quickly eviscerated the middle class Utilitarian program for thoroughgoing  social change. “The dominant cultural tendency became a sort of unsystematic, self-consciously untheoretical, romantic conservatism, opposed to rationalism, to grand theory, and above all to Benthamite ideas: ‘For the next hundred years, every poet, novelist and philosopher knew how to do at least one thing: to refute and deride Utilitarianism'” (Desai 1994: 42). Even today we knee-jerk dismiss Bentham’s program–indeed any progressive, ambitious social change vision and program–as ipso facto tyrannical (Foucauldians and anti-communists coalesce to keep this alive.), which was also the conservative Romantics’ dogma. Significance:

1) Britain’s bourgeois class did not produce an adequate effort at envisioning and advancing social change aimed at propagating freedoms. You could see this as the exceptional Anglo institutional capacity to repress revolt, or you could hypothesize: Bentham’s program was in fact not worthy of pursuing–Perhaps because, with the middle class Benthamite revolutionary aspirations, there was not sufficient coalition and interchange with the working class. The convergence, in exceptional Britain, was always already between the aristocrats and the bourgeoisie. The working class and peasantry were totally shut out–you know, as in a totalitarian way–except to the extent that they could be romanced by the aristocrat-dominated vision of land-based freedom.

2) As opposed to the English department consensus, Desai, following Anderson and Gramsci, is emphasizing that literary producers (and scientists as well–see Oppenheimer’s eye-opening, frustrated efforts at becoming a public intellectual) do not have the institutional and identity independence to form a properly-independent intellectual class capable of a) co-opting some elites to the cause of revolution, and b) significantly challenging hegemony.

The relationship between the Victorian literary establishment and political-economic elites was incestuous. English reform is what the US Civil Rights Movement would have been with Kathryn Stockett (“The Help”) at the helm, instead of MLK, the women bridge leaders, and Malcolm X.

Yet we have a tendency, in Anglo-american societies, to imagine, quite conservatively, that reformist literature–not intellectual schools that break with the dominant class’ interest, coalesce with the exploited class, and foster action — is all the social imagination we need or normatively should produce. We have seen pure middle class Bentham, and didn’t like it, and that’s all we need to know–It’s back to conservatism (freedom for a few, enthrallment for most) for us!

3) I’m sure quite shockingly it is never the case that elite opposition to rationalism or grand theory translates into beautiful anarchy. No, because you see there’s always the undead army of conservatism behind that opposition. Coleridge’s conservative, Durkheimian policy suggestion for governance: A “clerisy” institution, composed of nationalist “cultivated men,” “a morally and religiously sound clergy and aristocracy to serve as a cultural elite that would restore the community of England” (Coleridge).